Document:

Exhibit 10.12

 

LEASE AGREEMENT

 

This Lease is entered into
effective as of October 1, 2014 ("Commencement Date”), between CJK, Inc., an Arizona corporation ("Tenant"),
and Kingman Property Group, LLC, an Arizona limited liability company ("Landlord").

 

1.PREMISES. Landlord
leases to Tenant, and Tenant leases from Landlord, that certain office real property and improvements thereon located at 2095 Northern
Avenue, Kingman, Arizona ("Premises").

 

2.TERM. The term of
this Lease shall be for a period of ten (10) years (“Term") commencing as of the Commencement Date and shall terminate
on September 30, 2024.

 

3.RENT.

 

3.1Net, Net, Net Lease. Landlord
and Tenant understand and agree that this Lease is what is commonly referred to as a “net, net, net” Lease, NNN, or
triple net lease. Tenant recognizes and acknowledges, without limiting the generality of any other terms or provisions of this
lease, that it is the intent of the parties hereto that any and all rentals in this lease provided to be paid be Tenant to Landlord,
shall be net to the Landlord, and any and all expenses incurred in connection with the Common Areas, the Premises, and the Center
or in connection with the operations thereon, including any and all taxes, assessments, general or special, license fees, insurance
premiums, public utility bills, management and administrative fees and costs of repair, maintenance and operation of the Common
Areas, the Premises, and the Center and all buildings, structures, permanent textures and other improvements comprised therein,
together with the appurtenance thereto, shall be paid by Tenant.

 

3.2Tenant shall pay to Landlord
as Rent for the Premises in advance each month at the rate pursuant to section 3.3 as of October 1, 2014, and on or before the
first day of each month thereafter; provided that, upon the date that Landlord and Tenant shall execute this Lease (“Execution
Date”), Tenant shall pay to Landlord the sum of $10,000.00 (representing prepayment of the first months’ Rent) plus
applicable rental tax.

 

3.3Beginning with the first Rental payment due on October 1, 2014, rental payments will be pursuant
to the following schedule: for months 1 through 6 of tenancy (October 1, 2014 through March 31, 2015) rent shall be $10,000 due
on or before the first of the month. For months 7 through 12 of tenancy (April 1, 2015 through September 31, 2015) rent shall
be $12,000 due on or before the first of the month. For the second rental year of tenancy (October 1, 2015 – September 30,
2016) rent shall be $12,600 due on or before the first of each month. And every twelve (12) months thereafter (each, a “Lease
Year”), the Rent of each Lease Year commencing with October 1, 2016, will be increased on a cumulative basis by five percent
(5.00%) each year thereafter. For Example, lease payments in year three beginning October 1, 2016 will be $13,230 per month,
lease payments in year four beginning October 1, 2017 will be $13,892 per month, etc. 

 

    	 		 

     

    

3.4All Rent due hereunder shall
be paid by Tenant to Landlord at 16624 N. 90th Street, Suite 101, Scottsdale, Arizona 85260, or at such other place
as Landlord may from time to time designate.

3.5REAL PROPERTY TAXES AND ASSESSMENTS,
PERSONAL PROPERTY TAXES AND ASSOCIATION FEES AND ASSESSMENTS. Together with each payment of Rent to Landlord commencing and prorated
as of the Commencement Date through the balance of the Term, Tenant shall pay to Landlord one-twelfth (1/12th) of the
prior calendar year’s real property taxes and assessments with respect to the Premises and one-twelfth (1/12th)
of the then current calendar’s year’s association assessments and fees (if any) with respect to the Premises each month.
Subject to such payment, Landlord shall pay such taxes, assessments and fees to the respective taxing authority and office association.
In addition, Tenant shall pay all personal property taxes with respect to any property of Tenant or any subtenant in or upon the
Premises prior to delinquency and directly to the respective taxing authority on or before the last day upon which the same may
be paid without interest or penalty, and Tenant shall deliver to Landlord reasonable documentation evidencing Tenant’s compliance
with the foregoing payment obligations

3.6.RENTAL TAX. In addition to the
Rent which Tenant is required to pay Landlord herein, Tenant shall pay Landlord all transaction privilege, sales, rental and/or
other taxes or licenses (but excluding income or estate taxes charged against Landlord) levied upon or assessed against Landlord
by any governmental authority having jurisdiction, which are measured by the Rent or other charges in any form paid by Tenant to
Landlord hereunder. The amount required to be paid by Tenant to Landlord pursuant to the immediately preceding sentence shall be
paid at the time the applicable Rent is due or other charges are due and shall be considered as payment of taxes or licenses, as
the case may be, and not for the payment of Rent.

 

4.SECURITY DEPOSIT.
Tenant shall pay to Landlord, upon the Execution Date, a refundable security deposit in the sum of $7,500.00 plus applicable rental
tax in connection with this Lease. If Tenant defaults with respect to any provision of the Lease after applicable grace period,
Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any
rent or any other sum in default. If any portion of the Security Deposit is so used, applied or retained, Tenant shall, within
fifteen (15) days after demand therefor, deposit cash with Landlord in an amount sufficient to restore the security deposit to
its original amount, and Tenant's failure to do so shall be a default under the Lease. Landlord shall not be required to keep the
Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. If Tenant
shall fully and faithfully perform every term and condition of the Lease to be performed by it, Tenant shall be entitled to a refund
of the Security Deposit.

 

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5. UTILITIES AND SERVICES.
Tenant shall arrange and pay (before delinquent) for the supply of all heat, air conditioning, electricity, water, and natural
gas consumed by Tenant upon the Premises or utilized in the Premises. Tenant will supply and pay (before delinquent) for all telephone
and trash collection services to the Premises.

 

6.REPAIRS AND MAINTENANCE.
Tenant shall be responsible for the repair and maintenance of the Premises, excluding damages as the result of normal wear and
tear or degradation and excluding the roof, exterior walls, foundation, and underground utilities. Tenant shall maintain the above
ground plumbing and electrical systems, parking and driveway areas and landscaping of the Premises, reasonable wear and tear excepted
and shall provide janitorial and cleaning services for the Premises at Tenant’s expense. Without limiting the generality
of the foregoing, Tenant shall remove all new graffiti on the Premises within forty-eight (48) hours after such graffiti shall
be placed on the Premises and shall promptly repair, in a good and workmanlike manner, any damage to the Premises caused by any
act or omission of Tenant, or of any employee, agent or invitee of Tenant, or failing to do so after the expiration of applicable
notice and cure periods, Tenant shall pay Landlord for the cost of all such repairs, whereupon Landlord shall cause such repairs
to be completed.

 

7. PURPOSE. Tenant
shall use and occupy the Premises only for the purpose of operating an Arizona Department of Health Services-licensed (or legally-permitted
recreational) medical marijuana dispensary or cultivation location and for no other purpose whatsoever. Immediately upon Tenant’s
or subtenant’s receipt of any and all permits and licenses relative to the Premises and the use of the Premises, copies of
such permits and licenses shall be delivered to Landlord.

 

8.SIGNAGE.Tenant
may install and shall maintain at its sole expense, any and all signs upon the interior and exterior of the Premises, subject to
the reasonable approval of Landlord and the approval of all local and County governmental agencies that are required to approve
said signage.

 

9.INSURANCE.

 

9.1Tenant agrees to obtain
and keep in force during the Term, at Tenant's sole expense, the following insurance:

 

9.1.1Public liability insurance
to protect against any liability to the public incident to the use of or resulting from any accident occurring in or about the
Premises, the liability under such insurance to be not less than $2,000,000.00 for any one person injured or $2,000,000.00 for
any one accident and $1,000,000.00 for property damage.

 

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9.1.2All insurance policies
to be obtained by Tenant hereunder shall insure by name the Landlord, Tenant and any mortgagees, and copies thereof shall be delivered
to Landlord upon the Commencement Date. Landlord shall have the right to reasonably disapprove any insurance company proposed by
Tenant. Each of the foregoing original policies are to be placed with Landlord who is authorized to deliver such policies to mortgagees
when required, and Tenant shall obtain a written obligation on the part of the insurance carriers to notify Landlord in writing
thirty (30) days prior to any cancellation thereof, and Tenant agrees, if Tenant does not keep such insurance in full force and
effect, Landlord may take out the necessary insurance and pay the premiums and the repayment thereof shall be deemed to be part
of and in addition to the rental, and payment thereof shall become due, together with interest on such payment at the rate of one
and one-half percent (1.5%) per month (compounded monthly), on the next rental payment date.

 

9.1.3Tenant shall furnish
Landlord with proof of all such insurance at least annually and at any time upon demand of Landlord.

 

9.2Tenant shall obtain and
keep in force during the Term casualty insurance covering loss or damage to the Premises, in the amount of the full replacement
value thereof against all perils included within the classification of fire, extended coverage, vandalism, malicious mischief,
flood, mold and special extended perils ("all risk" as such term is used in the insurance industry) and shall provide
a copy of each such policy of insurance before this Lease is executed and continuously thereafter, with each renewal or replacement
of insurance. Provided that Tenant fails to obtain the necessary insurance, Landlord may obtain the necessary insurance. In such
a case, together with each payment of Rent to Landlord commencing and prorated as of the Commencement Date through the balance
of the Term, Tenant shall pay to Landlord one-twelfth (1/12th) of the premium cost of such casualty insurance. Subject
to such payment, Landlord shall pay such premiums to the insurance company. The parties shall co-operate with each other, in order
to avoid purchasing coverage on the same item or for the same acts and omissions.

 

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10.TERMINATION: In
the event that the Landlord is specifically advised in writing by any federal, state or local government that Landlord is subject
to seizure of his its property, if it does not terminate Tenant’s right to cultivate marijuana upon the Leased Premises,
or if the Arizona Medical Marijuana Act (AMMA) is declared to be unenforceable or is modified to prohibit the sale or cultivation
of medical marijuana upon the Leased Premises, or if any other zoning regulation, rule or regulation is modified to prohibit sale,
cultivation or possession of marijuana upon the Leased Premises, Landlord or may terminate this Lease. 

 

11.COMPLIANCE WITH
LAW; AS IS. Tenant accepts the Premises strictly on an “AS IS” basis, without any representations or warranties from
Landlord. Tenant agrees to be compliant with all applicable rules/laws/regulations in effect, or subsequently passed into effect,
as of and after the Commencement Date.

 

Tenant, at its sole cost
and expense, shall promptly observe and materially comply with all present and future laws, orders, regulations, rules, ordinances
and requirements of any governmental agency with respect to the use, care and control of the Premises. Without limiting the generality
of the foregoing, Tenant shall make any structural changes or additions to the Premises that are required, in order to comply with
the requirements of its business operations. Landlord makes no representations or warranties to Tenant, and hereby disclaims any
and all representations or warranties to Tenant, concerning the Premises, including without limitation, that as of the Commencement
Date the Premises are (a) in compliance with all federal, state and local laws, regulations and directives for Tenant's intended
use of the Premises, including without limitation the Environmental Laws, but excluding the Americans With Disabilities Act; and
(b) free from and of all hazardous materials, including without limitation asbestos, lead paint and polychlorinated biphenyl; provided
that Landlord represents and warrants to Tenant that Landlord has no actual knowledge, without having made any investigation or
inquiry, of any present violation by the Premises of any of the Environmental Laws. "Environmental Laws" shall include,
but not be limited to, the Resource, Conservation and Recovery Act of 1976, 42 U.S.C. Section 6901, et seq.; the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. Section 9601, et seq.; the Clean Water Act, 33
U.S.C. Section 1251, et seq.; the Toxic Substance Control Act, 15 U.S.C. Section 2601, et seq.; the Safe Drinking
Water Act, 42 U.S.C. Section 201,300f to j-9 and any and all environmental laws of the State of Arizona and any and all amendments
to such Environmental Laws. Tenant agrees to hold harmless Landlord, and hereby waives all rights and claims of contribution against
Landlord, with respect to any violations or alleged violations of Environmental Laws or any other federal, state and local laws,
regulations and directives concerning the Premises which arise as a result of Tenant’s activities at the Premises.

 

12.ACCESS BY LANDLORD.
Landlord, or its representatives and agents, shall have free access to the Premises at reasonable times for the purposes of inspection
and/or for examining or exhibiting the same to prospective purchasers, lenders or tenants; provided that, subject to Section 20
below, Landlord shall give Tenant at least one (1) day’s written notice or by email or by phone in advance of such examination
or exhibition, unless it would be impracticable to do so due to solely to an emergency concerning the Premises.

 

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13.RETURN OF PREMISES.
Upon the expiration of the term of this Lease or upon its termination for any cause, except for breach of this Lease by Landlord,
Tenant shall restore the Premises to the condition that Tenant received the Premises, reasonable wear and tear excepted, unless
Landlord advises Tenant to not remove any structural changes or alterations. If such non-removal shall not cause additional expense
to Tenant, Tenant shall not be required to remove them. Tenant shall surrender the Premises in as good order and condition as when
received, reasonable wear and tear excepted.

 

14.HOURS OF BUSINESS.
Tenant shall continuously during the entire term hereof conduct and carry on Tenant’s business in the Premises and shall
keep the Premises open for business and cause Tenant’s business to be conducted therein during the usual business hours of
each and every business day as is customary for businesses of like character.

 

15.ALTERATIONS AND
MODIFICATIONS. All alterations and modifications to the Premises that Tenant may desire shall be done at the expense of Tenant,
and shall become the property of Landlord and remain on the Premises (except for Tenant's removable equipment and trade fixtures)
and become Landlord’s property upon the expiration or earlier termination of the Term; provided that (a) “removable
equipment” shall mean equipment that is not permanently bolted, screwed or otherwise affixed to any walls, ceiling or floor
of the Premises, and (b) Tenant shall not make any alterations and modifications to the Premises without first obtaining the prior
written approval of Landlord, which approval shall not be unreasonably withheld. Any work done at the Premises shall be done by
duly licensed and qualified contractors. All damage or injury done to the Premises by Tenant or any person who may be in or on
the Premises with the consent of Tenant shall be paid for by Tenant.

 

16.LIENS AND ENCUMBRANCES.
Tenant shall keep the Premises free and clear of any liens or encumbrances imposed on the Premises by reason of any contract, act
or omission of Tenant. Tenant shall have the full right and authority to contest the validity of any such liens or encumbrances,
at Tenant's expense, and Landlord shall cooperate with all such contest actions, including without limitation, signing all consents
and other documents reasonably requested by Tenant or its agents in connection with such contest actions; provided that Tenant
shall not only bear the expense of such contests, but that such contest shall be undertaken at Tenant's risk as to liability for
payment of any applicable liens or encumbrances, and of penalties and/or interest imposed on any delinquencies related thereto.
Landlord may require, at Landlord’s sole option that Tenant shall provide to Landlord, at Tenant’s sole cost and expense,
a lien and completion bond in an amount equal to one and one-half (1 1⁄2) times the estimated cost of any improvements, additions,
or alterations, in the Premises which the Tenant desire to make, to insure Landlord against any liability for mechanics’
and material men’s liens and to insure completion of the work.

 

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17.DEFAULTS AND REMEDIES.

 

17.1Defaults.
The occurrence of any one or more of the following events shall constitute a material default and breach of this Lease by Tenant:

 

17.1.1The vacating or abandonment
of the Premises by Tenant for more than thirty (30) days.

 

17.1.2The failure by Tenant
to make any payment of Rent or any other payment required to be made by Tenant hereunder within three (3) business days after the
due date (without any requirement of notice from Landlord, except that notice is required with regard to all items except Rent
and normal, monthly rental taxes).

 

17.1.3The failure by Tenant
to observe or perform any of the covenants, conditions, or provisions of this Lease to be observed or performed by Tenant, other
than described in Section 17.1.2, where such failure shall continue for a period of fifteen (10) days after written notice thereof
from Landlord to Tenant; provided, however, that if the nature of Tenant's default is such that more than fifteen (10) days are
reasonably required for its cure, then Tenant shall not be deemed to be in default if Tenant commenced such cure within said 10-day
period and thereafter diligently prosecutes such cure to completion.

 

17.1.4(a) The making by Tenant
of and general assignment, or general arrangement for the benefit of creditors; (b) the filing by or against Tenant of a petition
to have Tenant adjudged a bankrupt or a petition for reorganization or arrangement under any law relating to bankruptcy (unless,
in the case of a petition filed against Tenant, the same is dismissed within sixty (60) days); (c) the appointment of a trustee
or receiver to take possession of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this
Lease, where possession is not restored to Tenant within sixty (60) days; or (d) the attachment, execution, or other judicial seizure
of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease, where such seizure is not
discharged within sixty (60) days.

 

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17.2Remedies. In the
event of any such uncured default or breach by Tenant, Landlord may at any time thereafter, with or without notice or demand and
without limiting Landlord on the exercise of any right or remedy which Landlord may have by reason of such default or breach, enter
and/or taking of possession of the Premises without a court order. Landlord may proceed by forcible detainer or by other judicial
remedy to obtain possession of the Premises.

 

17.2.1Landlord
shall not have the immediate right of re-entry (with or without notice) and may not remove all persons and property (subject to
applicable law) from the Premises without first obtaining a court order allowing Landlord to take possession of the Premises. If
Landlord obtains a court order for possession or if Tenant shall abandon the Premises for more than thirty (30) days, all property
left on the Premises will be considered abandoned and may be sold, removed, or stored in a public warehouse or elsewhere at the
cost of and for the account of Tenant.

 

17.2.2Should Landlord elect
to re-enter as herein provided, or should Landlord take possession pursuant to legal proceedings or pursuant to any notice provided
for by law, Landlord may either terminate this Lease or may from time to time, without terminating this Lease, re-let said premises
or any part thereof for such term or terms (which may be for a term extending beyond the term of this Lease) and at such rental
or rentals and upon such other terms and conditions as Landlord in Landlord's sole discretion may deem advisable with the right
to make reasonable alterations and repairs to the Premises.

 

17.2.3Upon each such re-letting
(a) Tenant shall be immediately liable to pay to Landlord, in addition to any indebtedness other than rent due hereunder, for the
reasonable cost and expenses of such re-letting and of such alterations and repairs incurred by Landlord and the amount, if any,
by which the rent reserved in this Lease for the period of such re-letting (up to but not beyond the term of this Lease) exceeds
the amount agreed to be paid as rent for the Premises for such period on such re-letting, or (b) at the option of Landlord, rents
received by such Landlord from such re-letting shall be applied, first to the payment of any indebtedness other than rent due hereunder
from Tenant to Landlord, second to the payment of any reasonable costs and expenses of such re-letting and of such alterations
and repairs, and third to the payment of rent due and unpaid hereunder, and the residue, if any, shall be held by Landlord and
applied in payment of future rent as the same may become due and payable hereunder. If Tenant has been credited with any rent to
be received by such re-letting under option (a), and such rent shall not be promptly paid to Landlord by the new tenant, or if
such rentals received from such re-letting under option (b) during any month shall be less than that to be paid during that
month by Tenant hereunder, Tenant shall pay any such deficiency to Landlord. Such deficiency shall be calculated and paid monthly.

 

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17.2.4No such re-entry or
taking possession of the Premises by Landlord shall be construed as an election on Landlord's part to terminate this Lease unless
a written notice of such intention be given to Tenant. Notwithstanding any such re-letting without termination, Landlord may at
any time thereafter elect to terminate this Lease for such previous breach, unless such previous breach has already been cured
by Tenant.

 

17.2.6Pursue any other remedy
not inconsistent with the foregoing now or hereafter available to Landlord under the laws or judicial decisions of the State of
Arizona.

 

17.2.7In addition to the
foregoing rights and remedies of Landlord, Tenant acknowledges that late payment by Tenant to Landlord of Rent or other sums due
hereunder will cause Landlord to incur expenses in an amount that will be impracticable or extremely difficult to ascertain. Accordingly,
if any installment of rent or any sum due from Tenant is not received by Landlord when due, Tenant shall pay to Landlord as liquidated
damages, a late charge equal to ten percent (10%) of such overdue amount. The parties hereby agree that this late charge represents
a fair and reasonable estimate of the cost that Landlord will incur, in addition to interest on the money involved, because of
the late payment by Tenant. Landlord’s failure to demand the payment of late charges on one or more occasions shall not constitute
a waiver of landlord’s right to demand payment of past due late charges. Acceptance of late charges by Landlord shall in
no event constitute a waiver of Tenant’s default with respect to such overdue amount, nor shall such acceptance prevent Landlord
from exercising any of the other rights and remedies granted hereunder. In addition, because of late payment or any other default
by Tenant under this Lease, Landlord may also incur attorney’s fees for services whether or not in connection with litigation,
and Tenant shall pay the reasonable attorney’s fees incurred by Landlord for these services.

 

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17.3Default by Landlord.
Landlord shall not be in default unless Landlord fails to perform obligations required by Landlord within a reasonable time, but
in no event later than thirty (45) days after written notice by Tenant to Landlord specifying wherein Landlord has failed to perform
such obligations; provided however, that if the nature of Landlord's obligation is such that more than thirty (45) days are required
for performance, then Landlord shall not be in default if Landlord commences performance within such 45-day period and thereafter
diligently prosecutes the same to completion. Landlord shall not be deemed in default hereunder as long as Tenant shall be in default
hereunder.

 

17.4 Attorney’s Fees.
In addition to the provisions of Section 17.2 above in favor of Landlord, the substantially prevailing party in any lawsuit involving
the enforcement or interpretation of this Lease shall be entitled to recover from the substantially non-prevailing party the attorney’s
fees and costs reasonably incurred by the substantially prevailing party.

 

18.DESTRUCTION OR CASUALTY.
In the event that the Premises are injured, damaged or destroyed by act of God, by fire or other casualty, and Landlord in its
sole discretion decides not to repair or restore the Premises, Tenant or Landlord shall have an option to terminate this Lease
as of the date of such injury, damage or destruction. This option shall be exercised upon the giving of written notice to Landlord
or Tenant, as the case may be, within sixty (60) days following the destruction, injury or damage. In the event that Landlord determines
to repair and restore the Premises, Landlord shall so advise Tenant in writing within sixty (60) days following the destruction,
injury or damage, and shall proceed with due diligence to effect repairs or reconstruction. During the period of repair or reconstruction,
this Lease shall continue in full force and effect; provided, however, that Tenant shall be entitled to a reduction of Rent from
the date of such destruction, injury or damage until the repairs or reconstruction are completed in an amount proportionate to
the extent to which such damage, injury or destruction and the making of repairs or reconstruction interferes with the occupancy
by or business operations of Tenant with respect to the Premises.

 

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19.CONDEMNATION. In
the event that all or any portion of the Premises shall be taken by eminent domain or condemnation by any governmental or other
authority having jurisdiction to do so, Landlord shall be entitled to receive, and Tenant hereby assigns completely to Landlord,
all proceeds payable by such authority(ies) in connection with such taking, except that Tenant shall be entitled to recover from
such authority(ies) only compensation for relocation expenses to the extent payable by such authority(ies). Tenant shall be entitled
to a reduction of rent from the date of such taking in an amount proportionate to the extent to which such taking interferes with
the occupancy by or business operations of Tenant with respect to the Premises. In the event that more than ten percent (10%) of
exterior portions of the Premises or if any interior portion of any structure on the Premises are taken, Tenant may terminate this
Lease, effective as of the date of actual delivery of possession to the condemning authority.

 

20.QUIET ENJOYMENT.
Tenant, on performing the covenants and observing the conditions of this Lease, at all times during the term shall have the peaceable
enjoyment of the Premises without hindrance or disturbance by Landlord or any person claiming through or under it or any person
having or claiming paramount title; provided that during the Term Landlord shall be permitted to store at the Premises, in an area
of the Premises mutually agreed upon by Landlord and Tenant prior to the Commencement Date exclusively reserved to and freely accessed
by Landlord without prior notice to Tenant, motors and related equipment.

 

21.ASSIGNMENT. Landlord
may freely sell, assign or otherwise transfer all or any portion of its interest under this Lease or in the Premises or in the
building or the land that comprise the Premises, and in the event of any such transfer, the party originally executing this Lease
as Landlord, and any successor or affiliate of such party, shall be relieved of any and all of its obligations under this Lease
from and after the date of such transfer, provided that Landlord is not in default of this Lease at the time of transfer. Tenant
shall thereafter be bound to the transferee with the same effect as though the latter had been the original Landlord hereunder,
provided that the transferee assumes and agrees to carry out all the obligations of Landlord hereunder.

 

No assignment or sublease
of the Premises by Tenant shall be binding upon Landlord or confer any rights on the proposed assignee or subtenant without the
prior written consent of Landlord, which Landlord may withhold in its sole discretion. Upon any assignment so approved by Landlord,
Tenant shall not be relieved of any liability with respect to this Lease. In the event of any approved assignment or sublease by
Tenant, Tenant shall pay to Landlord any and all attorney’s fees and costs incurred by Landlord in its review and approval
of the assignment and/or sublease transaction and in the preparation and/or review of all documents related thereto, up to a total
charge of one thousand dollars ($1,000.00).

 

22.NOTICES. Any and
all notices, consents or other communications provided for herein shall be given in writing and delivered by hand or registered
or certified mail addressed to the Landlord at 16624 N. 90th Street #101, Scottsdale, Arizona 85260. Any and all notices,
consents or other communications provided for herein shall be given in writing and delivered by hand or registered or certified
mail addressed to the Tenant at 2095 Northern Avenue, Kingman, Arizona and/or 16624 N. 90th Street #200, Scottsdale,
Arizona 85260, or to such other address as Tenant or Landlord may designate by written notice to the other. Each such notice shall
be deemed given on the date it is personally delivered, or if mailed, on the date of mailing.

 

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23.PRIOR AGREEMENTSThis
Lease constitutes the entire agreement between the parties and supersedes and cancels any and all prior agreements between the
parties relating to the subject matter hereof.

 

24.BENEFITS. This Lease
shall bind and inure to the benefit of the parties hereto and their respective administrators, legal representatives, successors
and assigns, but neither this Lease nor any right or obligation hereunder shall be assigned by any party except as provided in
this Lease.

 

25.FURTHER ASSURANCES.
The parties hereto shall execute and deliver all such other instruments and take all such other actions as any party may reasonably
request from time to time in order to effect the terms and conditions of this Lease. The parties shall cooperate with each other
and with their respective counsel and accountants in connection with any actions to be taken as a part of their respective obligations
under this Lease.

 

26.GOVERNING LAW, DISPUTE
RESOLUTION AND VENUE. This Lease shall be construed in accordance with the laws of the State of Arizona. In the event of any dispute,
venue shall be the state court located in Maricopa County, Arizona.

 

In the event a party is
in breach of this Agreement and the failure of a party to cure said breach in a timely manner, pursuant to this Agreement, to the
other party’s satisfaction within the period set forth herein, the other party or parties, in addition to and not in limitation
of any other rights and remedies available to such other party or parties at law or in equity, shall have the right to seek injunctive
relief and/or the appointment of a receiver.

 

The forgoing notwithstanding,
the parties hereby agree to attempt to resolve all differences among themselves by nonbinding mediation. In the event of a dispute,
either party may demand mediation (a settlement conference). If the parties fail to agree upon a mediator within five (5) business
days of demand for mediation, either party may petition the Maricopa County Superior Court for the appointment of a mediator. If
the dispute is not resolved by agreement of all parties within thirty (30) calendar days of the appointment of a mediator, or within
forty-five (45) days after the written request for mediation is transmitted to the other party, either party may commence arbitration.
The parties shall split the mediator’s fee.

 

If mediation is not timely
commenced or fails, all disputes among the parties to this Agreement shall be settled by binding arbitration, by one arbitrator,
according to the Arizona Revised Statutes and the Arizona Rules of Civil Procedure. If the parties cannot unanimously agree upon
an arbitrator, any person or entity involved in the dispute may petition the Maricopa County Superior Court for the appointment
of an arbitrator. The parties to the arbitration shall split the arbitrator’s fees equally. The arbitrator’s decision
shall be final and binding and may be enforced according to the Uniform Arbitration Act and/or enforced in any court of competent
jurisdiction. The arbitrator may award injunctive relief and may award attorney fees and/or costs to the prevailing party or parties.

 

    	 	12	 

     

    

 

27.WAIVER. No failure
or delay on the part of either party in exercising any right, power or privilege under this Lease shall operate as a waiver thereof
nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof.
The rights and remedies expressly specified in this Lease are cumulative and are not exclusive of any other rights or remedies
which either party would otherwise have.

 

28.CAPTIONS. All section
titles or captions contained in this Lease are for convenience only and shall not be deemed part of this Lease.

 

29.SEVERABILITY. The
provisions of this Lease are severable and the holding of any one provision as invalid or unenforceable shall have no effect on
any other provision.

 

30.COUNTERPARTS. This
Lease may be executed simultaneously in two (2) or more counterparts each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. It shall not be necessary in making proof of this Lease to produce or account
for more than one such counterpart.

 

31.FOR RENT AND FOR
SALE SIGNS.Landlord may post any "for sale" or "for rent" signs on or at the Premises and exhibit the Premises
during normal business hours to prospective buyers and tenants, from time to time.

 

32.ESTOPPEL CERTIFICATE.Landlord
and Tenant shall, at any time and from time to time, within ten (10) business days after written request from the other party,
execute, acknowledge and deliver to the requesting party a statement in writing: (a) certifying that the Lease is unmodified
and in full force and effect or, if modified, stating the nature of such modification and certifying that the Lease, as so modified,
is in full force and effect; (b) certifying the dates to which the Rent and other charges are paid in advance, if any; and
(c) acknowledging that there are not, to such party's knowledge, any uncured defaults on the part of the requesting party
hereunder, or specifying such defaults if they are claimed. Any such statement may be relied upon by any prospective purchaser
or lender of all or any portion of the Premises or any leasehold interest therein. The failure to deliver such statement within
such time shall be conclusive and binding upon the party upon whom the request is made that: (i) the Lease is in full force
and effect, without modification except as may be represented by the requesting party; (ii) there are no uncured defaults
on the requesting party's performance; and (iii) no Rent has been paid in advance. If Tenant is required or requested to execute
more than one estoppel certificate or similar document in any twelve (12) month period, Landlord shall reimburse Tenant for its
legal fees incurred in having such documents reviewed, up to a total charge of five hundred dollars ($500.00).

 

    	 	13	 

     

    

 

33.COMMISSIONS.
Landlord and Tenant acknowledge that neither of them has engaged the services of a real estate broker, salesperson or finder who
has provided real estate brokerage services in connection with this transaction, and is entitled to a commission. Landlord and
Tenant agree to indemnify and hold each other harmless in connection therewith.

 

34.USE AND SUITABILITY OF PREMISES.
Tenant acknowledges that neither Landlord nor Landlord’s agent has made any representation or warranty as to the present
or future suitability of the Premises for the conduct of Tenant’s business, or that Tenant’s proposed use of the Premises
or its manner of operation are in compliance with applicable laws or governmental regulations. It is the Tenant’s sole responsibility
to obtain building permits and/or occupancy permits, if required, and to correct code violations or code violations resulting from
changed or updated code requirements. Landlord shall not be liable for any delays or costs in obtaining said permits and Tenant
shall not withhold rents in the event of any delays or unexpected costs. Landlord and Landlord’s agent shall not, under any
circumstances, be obligated to investigate or confirm the permissibility, propriety, or legality of Tenant’s proposed use.
Tenant shall not do or permit anything to be done in or about the Premises nor bring or keep anything within the Premises which
will in any way increase the existing rate of or affect any fire or other insurance upon the Building or any of its contents, or
cause a cancellation of any insurance policy covering said Building or any part thereof or any of its contents. Tenant shall not
do or permit anything to be done in or about the Premises which will in any way obstruct or interfere with the rights of other
Tenants or occupants of the building or injure or annoy them or use or allow the Premises to be used for any improper, immoral,
unlawful or objectionable purpose; nor shall Tenant cause, maintain or permit any nuisance in, or about the Premises. Tenant shall
not commit or allow to be committed any waste in or upon the Premises. Tenant shall not use the Premises, or permit anything to
be done on or about the Premises, which will in anyway conflict with any law, statue, ordinance or governmental rule or regulation
in force or which may hereafter be enacted or promulgated. Tenant shall at its sole cost and expense, promptly comply with all
laws, statutes, ordinances and governmental rules, regulations or requirements now in force or which may hereafter be in force
and with the requirements of any board of fire underwriters or other similar bodies now or hereafter constituted relating to or
affecting the condition, use or occupancy of the Premises, excluding structural changes not related to or affected by Tenant’s
improvements or acts.

 

35.SALE
OF THE PREMISES BY LANDLORD. In the event of any sale of the Premises and/or the Shopping Center by Landlord, IF ANY, Landlord
shall be and is hereby entirely freed and relieved of all liability under any and all of its covenants and obligations contained
in or derived from this Lease arising out of any act, occurrence or omission occurring after the consummation of such sale; and
the purchaser, at such sale or any subsequent sale of the Premises shall be deemed without any further agreement between the parties
of their successors in interest or between the parties and any such purchaser, to have assumed and agreed to carry out any and
all of the covenants and obligations of the Landlord under this Lease.

 

    	 	14	 

     

    

 

36.HOLD HARMLESS AND
INDEMNIFICATION. Notwithstanding any provision to the contrary contained herein:

 

36.1Neither Landlord nor any
of its agents or employees shall have any liability to Tenant, or to Tenant’s employees, agents, contractors, subtenants,
invitees, patients or customers for any damage, injury, loss or claims based on or arising out of any cause whatsoever, including,
without limitation, the following: repair to any portion of the Premises; interruption in the use of the Premises or any equipment
therein; any accident or damage resulting from any use or operation by Landlord, Tenant or any other person or entity of elevators
or heating, cooling, electrical, sewerage or plumbing equipment or apparatus; termination of this Lease by reason of damage to
the Premises; fire, robbery, theft, vandalism, mysterious disappearance or any other casualty; actions of any other person or entity;
failure or inability to furnish any service specified in this Lease; and leakage in any part of the Premises from water, rain,
ice or snow that may leak into, or flow from, any part of the Premises, or from drains, pipes or plumbing fixtures in the Premises.
Any property placed by Tenant in or about the Premises shall be at the sole risk of Tenant, and Landlord shall not in any manner
be responsible therefor. Notwithstanding the foregoing, Landlord shall not be released from liability to Tenant for and to the
extent of any injury caused by Landlord’s willful misconduct or negligence or the willful misconduct or negligence of any
of Landlord’s employees, agents, partners contractors, employees, subtenants or invitees, unless Tenant is fully compensated
for its loss by insurance proceeds.

 

36.2Unless Landlord’s losses
are recovered by insurance proceeds, Tenant shall reimburse Landlord for, and shall indemnify, protect, defend and hold Landlord,
its employees and agents harmless from and against all costs, damages, claims, liabilities, expenses (including attorneys’
fees, disbursements and actual costs), losses and court costs suffered by or claimed against Landlord, directly or indirectly,
based on or arising out of, in whole or in part, (i) the use and occupancy of the Premises or the business conducted therein by
Tenant, its agents, contractors, employees, subtenants or invitees, (ii) any act or omission of Tenant, its agents, contractors,
employees, subtenants or invitees; or (iii) any breach of Tenant’s obligations under this Lease.

 

37.PROHIBITED
PERSONS AND TRANSACTIONS. Tenant represents and warrants to Landlord that as of the Commencement Date, Tenant is currently in compliance
with, and Tenant further covenants to Landlord that Tenant shall at all times during the term of the Lease (including any extension
thereof) remain in compliance with, the regulations of the Office of Foreign Assets Control (“OFAC”) of the U.S. Department
of Treasury (including those named on OFAC’s Specially Designated Nationals and Blocked Persons List) and any statute, executive
order (including, but not limited to, Executive Order 13224, dated September 24, 2001 and entitled “Blocking Property and
Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism”), or other governmental, regulatory,
or administrative action relating thereto and the Americans with Disabilities Act (“ADA”).

 

    	 	15	 

     

    

 

IN WITNESS WHEREOF, the
parties have set their names effective as of the Commencement Date above set forth.

 

LANDLORD:

 

Kingman Property Group, LLC an Arizona limited
liability partnership

 

 

By_______________________________________

Its Duly Authorized Agent

 

 

By_______________________________________

Its Duly Authorized Agent

 

 

TENANT:

 

CJK, Inc., an Arizona corporation

 

 

By_______________________________________

Its Duly Authorized Agent

 

By_______________________________________

Its Duly Authorized Agent

 

    	 	16	 

     

    

 

Addendum to the Lease

 

Compliance terms for Medical Marijuana Facility

  

1. Lessee acknowledges that neither the lessor nor lessor’s
representatives have made any oral or written representations or warranties whatsoever concerning the suitability or zoning of
the property with respect to its potential use as a medical marijuana facility, and that it is the sole responsibility of the Lessee
to investigate and to satisfy itself concerning the suitability of the property for such use.

 

2. Lessee understands and agrees that Lessee, and not Lessor, shall
be solely responsible at the Lessee’s own expense for full compliance with all state and local laws, rules, regulations and
ordinances pertaining to the maintenance and/or operation of a medical marijuana cultivation facility.

 

3. Lessee warrants and represents that it is eligible and qualified
to operate a medical marijuana facility in the property under all applicable state and local laws rules, regulations and ordinances,
and that Lessee has obtained all legally required licenses, permits, and approvals to do so before commencing operations on the
property.

 

4. Lessee shall indemnify, defend and hold harmless Lessor, its
trustees, agents, employees, and lenders from and against all damages, liabilities, judgments, claims, expenses, penalties, and
attorney and consultant fees arising out of or connected in any way to Lessee’s violation or alleged violation of any federal,
state, or local law, rule, regulation or ordinance, whether or not litigation or prosecution is actually commences against Lessor,
its trustees, agents, employees or lenders.

 

5. Lessee shall provide notice to Lessor immediately
in the event of the revocation, suspension, expiration, transfer, or surrender of Lessee’s lawful authority to operate a
medical marijuana facility. Such revocation, suspension, expiration, transfer or surrender, or Lessee’s failure to provide
immediate notice thereof to Lessor, shall constitute a Breach of the Lease entitling Lessor at its sole discretion to terminate
the lease.  

 

	LANDLORD:	 	TENANT:
	 	 	 
	Kingman Property Group, LLC

	 	CJK, Inc., an Arizona corporation

	 	 	 
	By______________________________ 	 	By______________________________
	               Its Duly Authorized Agent	 	               Its Duly Authorized Agent

  

 

17EXHIBIT 4.1

 

THE PRICELINE GROUP INC.

 

as Issuer

 

and

 

DEUTSCHE BANK TRUST COMPANY AMERICAS

 

as Trustee

 

INDENTURE

 

Dated as of September 23, 2014

 

Table Showing Reflection in Indenture of Certain Provisions

of Trust Indenture Act of 1939,

as amended by the Trust Indenture Reform Act of 1990*

 

Reflected in Indenture

 

	
Trust Indenture Act Section
    	
 
    	
Indenture Section
    
	
310   (a) (1)
    	
 
    	
7.10
    
	
(a) (2)
    	
 
    	
7.10
    
	
(a) (3)
    	
 
    	
N.A.
    
	
(a) (4)
    	
 
    	
N.A.
    
	
(a) (5)
    	
 
    	
7.10
    
	
(b)
    	
 
    	
7.10
    
	
(c)
    	
 
    	
N.A.
    
	
311   (a)
    	
 
    	
7.11
    
	
(b)
    	
 
    	
7.11
    
	
(c)
    	
 
    	
N.A.
    
	
312   (a)
    	
 
    	
2.06
    
	
(b)
    	
 
    	
10.03
    
	
(c)
    	
 
    	
10.03
    
	
313   (a)
    	
 
    	
7.06
    
	
(b) (1)
    	
 
    	
N.A.
    
	
(b) (2)
    	
 
    	
7.06
    
	
(c)
    	
 
    	
7.06; 10.02
    
	
(d)
    	
 
    	
7.06
    
	
314   (a)
    	
 
    	
4.02; 4.03; 10.02(b)
    
	
(b)
    	
 
    	
N.A.
    
	
(c) (1)
    	
 
    	
10.04
    
	
(c) (2)
    	
 
    	
10.04
    
	
(c) (3)
    	
 
    	
N.A.
    
	
(d)
    	
 
    	
N.A.
    
	
(e)
    	
 
    	
10.05
    
	
(f)
    	
 
    	
N.A.
    
	
315   (a)
    	
 
    	
7.01
    
	
(b)
    	
 
    	
7.05; 10.02
    
	
(c)
    	
 
    	
7.01
    
	
(d)
    	
 
    	
7.01
    
	
(e)
    	
 
    	
6.11
    

 

 

	
316   (a)
    	
 
    	
2.09
    
	
(a) (1)(A)
    	
 
    	
6.05
    
	
(a) (1)(B)
    	
 
    	
6.04
    
	
(a) (2)
    	
 
    	
N.A.
    
	
(b)
    	
 
    	
6.07
    
	
(c)
    	
 
    	
2.13
    
	
317   (a)(1)
    	
 
    	
6.08
    
	
(a) (2)
    	
 
    	
6.09
    
	
(b)
    	
 
    	
2.05
    
	
318   (a)
    	
 
    	
10.01
    
	
(b)
    	
 
    	
N.A.
    
	
(c)
    	
 
    	
10.01
    

 

N.A. means not applicable.

*         This Cross Reference Table is not part of the Indenture.

 

ii

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ARTICLE I
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Definitions And Incorporation By Reference
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 1.01.
    	
 
    	
Definitions
    	
 
    	
1
    
	
SECTION 1.02.
    	
 
    	
Other   Definitions
    	
 
    	
3
    
	
SECTION 1.03.
    	
 
    	
Incorporation   by Reference of Trust Indenture Act
    	
 
    	
3
    
	
SECTION 1.04.
    	
 
    	
Rules of   Construction
    	
 
    	
4
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ARTICLE II
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Securities
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 2.01.
    	
 
    	
Issuable   in Series
    	
 
    	
4
    
	
SECTION 2.02.
    	
 
    	
Establishment   of Terms of Series of Securities
    	
 
    	
4
    
	
SECTION 2.03.
    	
 
    	
Execution   and Authentication
    	
 
    	
6
    
	
SECTION 2.04.
    	
 
    	
Registrar   and Paying Agent
    	
 
    	
6
    
	
SECTION 2.05.
    	
 
    	
Paying   Agent to Hold Money in Trust
    	
 
    	
7
    
	
SECTION 2.06.
    	
 
    	
Holder   Lists
    	
 
    	
7
    
	
SECTION 2.07.
    	
 
    	
Transfer   and Exchange
    	
 
    	
7
    
	
SECTION 2.08.
    	
 
    	
Mutilated,   Destroyed, Lost and Stolen Securities
    	
 
    	
7
    
	
SECTION 2.09.
    	
 
    	
Outstanding   Securities
    	
 
    	
8
    
	
SECTION 2.10.
    	
 
    	
Treasury   Securities
    	
 
    	
8
    
	
SECTION 2.11.
    	
 
    	
Temporary   Securities
    	
 
    	
8
    
	
SECTION 2.12.
    	
 
    	
Cancellation
    	
 
    	
8
    
	
SECTION 2.13.
    	
 
    	
Defaulted   Interest
    	
 
    	
8
    
	
SECTION 2.14.
    	
 
    	
Global   Securities
    	
 
    	
8
    
	
SECTION 2.15.
    	
 
    	
CUSIP   Numbers
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ARTICLE III
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Redemption
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 3.01.
    	
 
    	
Notices   to Trustee
    	
 
    	
9
    
	
SECTION 3.02.
    	
 
    	
Selection   of Securities To Be Redeemed
    	
 
    	
9
    
	
SECTION 3.03.
    	
 
    	
Notice   of Redemption
    	
 
    	
10
    
	
SECTION 3.04.
    	
 
    	
Effect   of Notice of Redemption
    	
 
    	
10
    
	
SECTION 3.05.
    	
 
    	
Deposit   of Redemption Price
    	
 
    	
10
    
	
SECTION 3.06
    	
 
    	
Securities   Redeemed in Part
    	
 
    	
10
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ARTICLE IV
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Covenants
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 4.01.
    	
 
    	
Payment   of Securities
    	
 
    	
11
    
	
SECTION 4.02.
    	
 
    	
SEC   Reports
    	
 
    	
11
    
	
SECTION 4.03.
    	
 
    	
Compliance   Certificate
    	
 
    	
11
    
	
SECTION 4.04.
    	
 
    	
Further   Instruments and Acts
    	
 
    	
11
    
	
SECTION 4.05.
    	
 
    	
Original   Issue Discount
    	
 
    	
11
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ARTICLE V
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Successor Companies
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 5.01.
    	
 
    	
Merger   and Consolidation
    	
 
    	
11
    

 

iii

 

	
 
    	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ARTICLE VI
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Defaults And Remedies
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 6.01.
    	
 
    	
Events   of Default
    	
 
    	
12
    
	
SECTION 6.02.
    	
 
    	
Acceleration
    	
 
    	
12
    
	
SECTION 6.03.
    	
 
    	
Other   Remedies
    	
 
    	
13
    
	
SECTION 6.04.
    	
 
    	
Waiver   of Past Defaults
    	
 
    	
13
    
	
SECTION 6.05.
    	
 
    	
Control   by Majority
    	
 
    	
13
    
	
SECTION 6.06.
    	
 
    	
Limitation   on Suits
    	
 
    	
13
    
	
SECTION 6.07.
    	
 
    	
Rights   of Holders to Receive Payment
    	
 
    	
13
    
	
SECTION 6.08.
    	
 
    	
Collection   Suit by Trustee
    	
 
    	
14
    
	
SECTION 6.09.
    	
 
    	
Trustee   May File Proofs of Claim
    	
 
    	
14
    
	
SECTION 6.10.
    	
 
    	
Priorities
    	
 
    	
14
    
	
SECTION 6.11.
    	
 
    	
Undertaking   for Costs
    	
 
    	
14
    
	
SECTION 6.12.
    	
 
    	
Waiver   of Stay or Extension Laws
    	
 
    	
14
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ARTICLE VII
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Trustee
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 7.01.
    	
 
    	
Duties   of Trustee
    	
 
    	
14
    
	
SECTION 7.02.
    	
 
    	
Rights   of Trustee
    	
 
    	
15
    
	
SECTION 7.03.
    	
 
    	
Individual   Rights of Trustee
    	
 
    	
16
    
	
SECTION 7.04.
    	
 
    	
Trustee’s   Disclaimer
    	
 
    	
16
    
	
SECTION 7.05.
    	
 
    	
Notice   of Defaults
    	
 
    	
16
    
	
SECTION 7.06.
    	
 
    	
Reports   by Trustee to Holder
    	
 
    	
16
    
	
SECTION 7.07.
    	
 
    	
Compensation   and Indemnity
    	
 
    	
16
    
	
SECTION 7.08.
    	
 
    	
Replacement   of Trustee
    	
 
    	
17
    
	
SECTION 7.09.
    	
 
    	
Successor   Trustee by Merger
    	
 
    	
17
    
	
SECTION 7.10.
    	
 
    	
Eligibility;   Disqualification
    	
 
    	
17
    
	
SECTION 7.11.
    	
 
    	
Preferential   Collection of Claims Against the Issuer
    	
 
    	
17
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ARTICLE VIII
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Legal Defeasance And Covenant Defeasance
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 8.01.
    	
 
    	
Option   to Effect Legal Defeasance or Covenant Defeasance
    	
 
    	
18
    
	
SECTION 8.02.
    	
 
    	
Legal   Defeasance and Discharge
    	
 
    	
18
    
	
SECTION 8.03.
    	
 
    	
Covenant   Defeasance
    	
 
    	
18
    
	
SECTION 8.04.
    	
 
    	
Conditions   to Legal or Covenant Defeasance
    	
 
    	
19
    
	
SECTION 8.05.
    	
 
    	
Deposited   Money and Government Securities to be Held in Trust; Other Miscellaneous   Provisions
    	
 
    	
19
    
	
SECTION 8.06.
    	
 
    	
Repayment   to the Issuer
    	
 
    	
20
    
	
SECTION 8.07.
    	
 
    	
Reinstatement
    	
 
    	
20
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ARTICLE IX
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Amendments
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 9.01.
    	
 
    	
Without   Consent of Holders
    	
 
    	
20
    
	
SECTION 9.02.
    	
 
    	
With   Consent of Holders
    	
 
    	
21
    
	
SECTION 9.03.
    	
 
    	
Compliance   with Trust Indenture Act
    	
 
    	
21
    
	
SECTION 9.04.
    	
 
    	
Revocation   and Effect of Consents and Waivers
    	
 
    	
21
    
	
SECTION 9.05.
    	
 
    	
Notation   on or Exchange of Securities
    	
 
    	
22
    
	
SECTION 9.06.
    	
 
    	
Trustee   To Sign Amendments
    	
 
    	
22
    
	
SECTION 9.07.
    	
 
    	
Payment   for Consent
    	
 
    	
22
    

 

iv

 

	
 
    	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
ARTICLE X
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Miscellaneous
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 10.01.
    	
 
    	
Trust   Indenture Act Controls
    	
 
    	
22
    
	
SECTION 10.02.
    	
 
    	
Notices
    	
 
    	
22
    
	
SECTION 10.03.
    	
 
    	
Communication   by Holders with Other Holders
    	
 
    	
23
    
	
SECTION 10.04.
    	
 
    	
Certificate   and Opinion as to Conditions Precedent
    	
 
    	
23
    
	
SECTION 10.05.
    	
 
    	
Statements   Required in Certificate or Opinion
    	
 
    	
23
    
	
SECTION 10.06.
    	
 
    	
When   Securities Disregarded
    	
 
    	
23
    
	
SECTION 10.07.
    	
 
    	
Rules by   Trustee, Paying Agent and Registrar
    	
 
    	
23
    
	
SECTION 10.08.
    	
 
    	
Legal   Holidays
    	
 
    	
23
    
	
SECTION 10.09.
    	
 
    	
Governing   Law
    	
 
    	
23
    
	
SECTION 10.10.
    	
 
    	
No   Recourse Against Others
    	
 
    	
23
    
	
SECTION 10.11.
    	
 
    	
Successors
    	
 
    	
24
    
	
SECTION 10.12.
    	
 
    	
Multiple   Originals
    	
 
    	
24
    
	
SECTION 10.13.
    	
 
    	
Table   of Contents; Headings
    	
 
    	
24
    
	
SECTION 10.14.
    	
 
    	
Severability
    	
 
    	
24
    
	
SECTION 10.15.
    	
 
    	
Waiver   of Jury Trial
    	
 
    	
24
    
	
SECTION 10.16.
    	
 
    	
Force   Majeure
    	
 
    	
24
    
	
SECTION 10.17.
    	
 
    	
U.S.A.   Patriot Act
    	
 
    	
24
    

 

v

 

INDENTURE dated as of September 23, 2014, between THE PRICELINE GROUP INC., a Delaware corporation (the “Issuer”), and DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York banking corporation, as trustee (the “Trustee”).

 

Each party agrees as follows for the benefit of the other parties and for the equal and ratable benefit of the Holders of the securities issued under this Indenture (the “Securities”):

 

ARTICLE I

 

Definitions And Incorporation By Reference

 

SECTION 1.01. Definitions.

 

“Affiliate” of any specified Person means any other Person, directly or indirectly, controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control” when used with respect to any Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

 

“Agent” means any Registrar, Paying Agent or co-registrar.

 

“Board of Directors” means the Board of Directors of the Issuer or any committee thereof duly authorized to act on behalf of the Board of Directors of the Issuer.

 

“Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Issuer to have been adopted by the Board of Directors or pursuant to authorization by the Board of Directors and to be in full force and effect on the date of the certificate and delivered to the Trustee.

 

“Business Day” means each day which is not a Legal Holiday.

 

“Capital Stock” of any Person means any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) equity of such Person, including any preferred stock, but excluding any debt securities convertible into such equity.

 

“Closing Date” means the date of this Indenture.

 

“Code” means the U.S. Internal Revenue Code of 1986, as amended.

 

“Corporate Trust Office” means the designated office of the Trustee at which at any time its corporate trust business shall be administered, which office at the date hereof is located at 60 Wall Street, 16th Floor, New York, New York 10005, Attention:  Corporates Team — The Priceline Group Inc., or such other address as the Trustee may designate from time to time by notice to the Holders and the Issuer, or the principal corporate trust office of any successor Trustee (or such other address as such successor Trustee may designate from time to time by notice to the Holders and the Issuer).

 

“Default” means any event which is, or after notice or passage of time or both would be, an Event of Default.

 

“Definitive Securities” means a certificated Security registered in the name of the Holder thereof and issued in accordance with Section 2.11 hereof.

 

“Depositary” means, with respect to the Securities issuable in whole or in part in global form, the Person specified pursuant to Section 2.14 hereof as the initial Depositary with respect to the Securities, until a successor shall have been appointed and become such pursuant to the applicable provisions of this Indenture, and thereafter “Depositary” shall mean or include such successor.

 

“Dollar” means a dollar or other equivalent unit in such coin or currency of the United States as at the time shall be legal tender for the payment of public and private debt.

 

“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.

 

“Fiscal Year” means the fiscal year of the Issuer, which at the date hereof ends on December 31.

 

“Foreign Currency” means any currency or currency unit issued by a government other than the government of the United States of America.

 

 

“GAAP” means generally accepted accounting principles in the United States of America as in effect from time to time, including those principles set forth in (i) the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants, (ii) statements and pronouncements of the Financial Accounting Standards Board, (iii) such other statements by such other entity as approved by a significant segment of the accounting profession and (iv) the rules and regulations of the SEC governing the inclusion of financial statements (including pro forma financial statements) in periodic reports required to be filed pursuant to Section 13 of the Exchange Act, including opinions and pronouncements in staff accounting bulletins and similar written statements from the accounting staff of the SEC. All ratios and computations based on GAAP contained in this Indenture shall be computed in conformity with GAAP.

 

“Global Security” when used with respect to any Series of Securities issued hereunder, means a Security which is executed by the Issuer and authenticated and delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction, all in accordance with this Indenture and an indenture supplemental hereto, if any, or Board Resolution and pursuant to an Issuer Order, which shall be registered in the name of the Depositary or its nominee and which shall represent, and shall be denominated in an amount equal to the aggregate principal amount of, all the outstanding Securities of such Series or any portion thereof, in either case having the same terms, including, without limitation, the same original issue date, date or dates on which principal is due, and interest rate or method of determining interest and which shall bear the legend as prescribed by Section 2.14(c).

 

“Global Securities Legend” means the legend set forth in Section 2.14(c), which is required to be placed on all Global Securities issued under this Indenture.

 

“Government Securities” means direct obligations of, or obligations guaranteed by, the United States of America, and the payment for which the United States pledges its full faith and credit; provided, that if Securities of a Series are denominated in a currency other than Dollars, an Officers’ Certificate or any supplemental indenture may provide for Government Securities to be direct obligations of, or obligations guaranteed by a country other than the United States of America and the payment for which such country pledges its full faith and credit, for purposes of such Securities of a Series.

 

“Guarantee” means a guarantee (other than by endorsement of negotiable instruments for collection in the ordinary course of business), direct or indirect, in any manner (including, without limitation, by way of a pledge of assets or through letters of credit or reimbursement agreements in respect thereof), of all or any part of any Indebtedness. The term “Guarantor” shall mean any Person Guaranteeing any obligation.

 

“Holder” means the Person in whose name a Security is registered on the Registrar’s books.

 

“Indebtedness” has the meaning specified in the applicable Board Resolution, supplemental indenture or Officers’ Certificate relating to a particular Series of Securities.

 

“Indenture” means this Indenture as amended or supplemented from time to time.

 

“Interest Payment Date” when used with respect to any Series of Securities, means the date specified in such Securities for the payment of any installment of interest on those Securities.

 

“Issuer” means The Priceline Group Inc., a Delaware corporation, until a successor replaces it and, thereafter, means the successor and, for purposes of any provision contained herein and required by the Trust Indenture Act, each other obligor on the indenture securities.

 

“Issuer Order” means a written order signed in the name of the Issuer by two Officers of the Issuer.

 

“Maturity”, when used with respect to any Security or installment of principal thereof, means the date on which the principal of such Security or such installment of principal becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration or otherwise.

 

“Officer” means the Chief Executive Officer, the Chief Financial Officer, the Chief Operating Officer, any Executive Vice President, the Controller, the Secretary or the Assistant Secretary of the Issuer.

 

“Officers’ Certificate” means a certificate signed by two Officers of the Issuer, that meets the requirements of Section 10.04 hereof.

 

“Opinion of Counsel” means a written opinion from legal counsel, that meets the requirements of Section 10.04 hereof. The counsel may be an employee of or counsel to the Issuer or any Subsidiary of the Issuer.

 

“Original Issue Discount Security” means (i) any Security that provides for an amount less than the stated principal amount thereof to be due and payable upon a declaration of acceleration of the Maturity thereof and (ii) any other security which is issued with “original issue discount” within the meaning of Section 1273(a) of the Code.

 

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“Person” means any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust, unincorporated organization, government or any agency or political subdivision thereof or any other entity.

 

“Responsible Officer” means, when used with respect to the Trustee, any officer within the corporate trust department of the Trustee, including any vice president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who customarily performs functions similar to those performed by the persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of this Indenture.

 

“SEC” means the U.S. Securities and Exchange Commission.

 

“Securities” has the meaning specified in the preamble to this Indenture.

 

“Securities Act” means the U.S. Securities Act of 1933, as amended.

 

“Securities Custodian” means the custodian with respect to a Global Security (as appointed by the Depositary) or any successor thereto, who shall initially be the Trustee.

 

“Series” or “Series of Securities” means each series of debentures, notes or other debt instruments of the Issuer created pursuant to Sections 2.01 and 2.02 hereof.

 

“Significant Subsidiary” means, at any time, any Subsidiary of the Issuer which would be a “Significant Subsidiary” at such time, as such term is defined in Regulation S-X promulgated by the SEC, as in effect on the Closing Date.

 

“Stated Maturity”, when used with respect to any Security, means the date specified in such Security as the fixed date on which an amount equal to the principal amount of such Security is due and payable.

 

“Subsidiary” of any Person means any corporation, association, partnership or other business entity of which more than 50% of the total voting power of shares of Capital Stock or other interests (including partnership interests) entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by (i) such Person, (ii) such Person and one or more Subsidiaries of such Person or (iii) one or more Subsidiaries of such Person.

 

“Trust Indenture Act” means the U.S. Trust Indenture Act of 1939 (15 U.S.C. §§77aaa—77bbbb) and the rules and regulations thereunder as in effect on the Closing Date.

 

“Trustee” means the party named as such in this Indenture until a successor replaces it and, thereafter, means the successor.

 

SECTION 1.02. Other Definitions.

 

	
Term
    	
 
    	
Defined in Section
    	
 
    
	
“Bankruptcy Law” 
    	
 
    	
6.01
    	
 
    
	
“Covenant Defeasance” 
    	
 
    	
8.03
    	
 
    
	
“Custodian” 
    	
 
    	
6.01
    	
 
    
	
“Event of Default” 
    	
 
    	
6.01
    	
 
    
	
“Legal Defeasance” 
    	
 
    	
8.02
    	
 
    
	
“Legal Holiday” 
    	
 
    	
10.08
    	
 
    
	
“Notice of Default” 
    	
 
    	
6.01
    	
 
    
	
“Paying Agent” 
    	
 
    	
2.04
    	
 
    
	
“Registrar” 
    	
 
    	
2.04
    	
 
    
	
“Successor Company” 
    	
 
    	
5.01
    	
 
    

 

SECTION 1.03. Incorporation by Reference of Trust Indenture Act. This Indenture is subject to the mandatory provisions of the Trust Indenture Act, which are incorporated by reference in and made a part of this Indenture. The following Trust Indenture Act terms have the following meanings:

 

“Commission” means the SEC.

 

“indenture securities” means the Securities.

 

“indenture security holder” means a Holder.

 

“indenture to be qualified” means this Indenture.

 

“indenture trustee” or “institutional trustee” means the Trustee.

 

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“obligor” on the Securities means the Issuer and any other obligor on the Securities.

 

All other terms used in this Indenture that are defined by the Trust Indenture Act, defined by Trust Indenture Act reference to another statute or defined by SEC rule have the meanings assigned to them by such definitions.

 

SECTION 1.04. Rules of Construction. Unless the context otherwise requires:

 

(1) a term has the meaning assigned to it;

 

(2) an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;

 

(3) “or” is not exclusive;

 

(4) “including” means including without limitation;

 

(5) words in the singular include the plural and words in the plural include the singular; and

 

(6) the principal amount of any non-interest bearing or other discount security at any date shall be the principal amount thereof that would be shown on a balance sheet of the issuer dated such date prepared in accordance with GAAP.

 

ARTICLE II

 

The Securities

 

SECTION 2.01. Issuable in Series. The aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited. The Securities may be issued in one or more Series as the Issuer may authorize from time to time. All Securities of a Series shall be identical except as may be set forth in a Board Resolution, a supplemental indenture or an Officers’ Certificate detailing the adoption of the terms thereof pursuant to the authority granted under a Board Resolution. In the case of Securities of a Series to be issued from time to time, the Board Resolution, supplemental indenture or Officers’ Certificate may provide for the method by which specified terms (such as interest rate, maturity date, record date or date from which interest shall accrue) are to be determined. Securities may differ between Series in respect of any matters.

 

SECTION 2.02. Establishment of Terms of Series of Securities. At or prior to the issuance of any Securities within a Series, the following shall be established (as to the Series generally, in the case of Section 2.02(a) and either as to such Securities within the Series or as to the Series generally in the case of Sections 2.02(b) through 2.02(z)) by a Board Resolution, a supplemental indenture or an Officers’ Certificate pursuant to authority granted under a Board Resolution:

 

(a) the title of the Securities of the Series (which shall distinguish the Securities of that particular Series from the Securities of any other Series);

 

(b) the price or prices of the Securities of the Series;

 

(c) any limit upon the aggregate principal amount of the Securities of the Series which may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the Series);

 

(d) the date or dates on which the principal and premium with respect to the Securities of the Series are payable;

 

(e) the rate or rates (which may be fixed or variable) at which the Securities of the Series shall bear interest, if any, or the method of determining such rate or rates, the date or dates from which such interest, if any, shall accrue, the Interest Payment Dates on which such interest, if any, shall be payable or the method by which such dates will be determined, the record dates, for the determination of holders thereof to whom such interest is payable (in the case of Securities in registered form), and the basis upon which such interest will be calculated if other than that of a 360-day year of twelve 30-day months;

 

(f) the currency or currencies in which Securities of the Series shall be denominated, if other than Dollars, the place or places, if any, in addition to or instead of the Corporate Trust Office of the Trustee, where the principal, premium and interest with respect to Securities of such Series shall be payable or the method of such payment, if by wire transfer, mail or other means;

 

(g) the price or prices at which, the period or periods within which, and the terms and conditions upon which, Securities of the Series may be redeemed, in whole or in part at the option of the Issuer or otherwise;

 

(h) whether Securities of the Series are to be issued as Securities in registered form or as Securities in bearer form or both and, if Securities in bearer form are to be issued, whether coupons will be attached to them, whether Securities in bearer form of the 

 

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Series may be exchanged for Securities in registered form of the Series, and the circumstances under which and the places at which any such exchanges, if permitted, may be made;

 

(i) if any Securities of the Series are to be issued as Securities in bearer form or as one or more Global Securities representing individual Securities in bearer form of the Series, whether certain provisions for the payment of additional interest or tax redemptions shall apply; whether interest with respect to any portion of a temporary bearer Security of the Series payable with respect to any Interest Payment Date prior to the exchange of such temporary bearer Security for definitive Securities in bearer form of the Series shall be paid to any clearing organization with respect to the portion of such temporary bearer Security held for its account and, in such event, the terms and conditions (including any certification requirements) upon which any such interest payment received by a clearing organization will be credited to the Persons entitled to interest payable on such Interest Payment Date; and the terms upon which a temporary Security in bearer form may be exchanged for one or more definitive Securities in bearer form of the Series;

 

(j) the Issuer’s obligation, if any, to redeem, purchase or repay the Securities of the Series pursuant to any sinking fund or analogous provisions or at the option of a Holder of such Securities and the price or prices at which, the period or periods within which, and the terms and conditions upon which, Securities of the Series shall be redeemed, purchased or repaid, in whole or in part, pursuant to such obligations;

 

(k) the terms, if any, upon which the Securities of the Series may be convertible into or exchanged for the Issuer’s common stock, preferred stock, depositary shares, other debt securities or warrants for common stock, preferred stock, depositary shares, Indebtedness or other securities of any kind and the terms and conditions upon which such conversion or exchange shall be effected, including the initial conversion or exchange price or rate, the conversion or exchange period and any other additional provisions;

 

(l) if other than denominations of $1,000 and any integral multiple thereof, the denominations in which the Securities of the Series shall be issuable;

 

(m) if the amount of principal, premium or interest with respect to the Securities of the Series may be determined with reference to an index or pursuant to a formula, the manner in which such amounts will be determined;

 

(n) if the principal amount payable at the Stated Maturity of Securities of the Series will not be determinable as of any one or more dates prior to such Stated Maturity, the amount that will be deemed to be such principal amount as of any such date for any purpose, including the principal amount thereof which will be due and payable upon any Maturity other than the Stated Maturity or which will be deemed to be outstanding as of any such date (or, in any such case, the manner in which such deemed principal amount is to be determined), and if necessary, the manner of determining the equivalent thereof in Dollars;

 

(o) any changes or additions to Article VIII;

 

(p) if other than the principal amount thereof, the portion of the principal amount of the Securities of the Series that shall be payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.02 or provable in bankruptcy;

 

(q) the terms, if any, of the transfer, mortgage, pledge or assignment as security for the Securities of the Series of any properties, assets, moneys, proceeds, securities or other collateral, including whether certain provisions of the Trust Indenture Act are applicable and any corresponding changes to provisions of this Indenture as then in effect;

 

(r) any addition to or change in the Events of Default with respect to any Securities of the Series and any change in the right of the Trustee or the Holders of such Series of Securities to declare the principal, premium and interest, if any, on such Series of Securities due and payable pursuant to Section 6.02;

 

(s) if the Securities of the Series shall be issued in whole or in part in the form of a Global Security, the terms and conditions, if any, upon which such Global Security may be exchanged in whole or in part for other individual Securities of such Series in definitive registered form, the Depositary for such Global Security and the form of any legend or legends to be borne by any such Global Security in addition to or in lieu of the Global Securities Legend;

 

(t) any Trustee, authenticating agent, Paying Agent, transfer agent or Registrar;

 

(u) the applicability of, and any addition to or change in, the covenants and definitions set forth in Articles IV or V which apply to Securities of the Series;

 

(v) the terms, if any, of any Guarantee of the payment of principal, premium and interest with respect to Securities of the Series and any corresponding changes to the provisions of this Indenture and as then in effect;

 

(w) the subordination, if any, of the Securities of the Series pursuant to this Indenture and any changes or additions to the provisions of this Indenture then in effect;

 

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(x) with regard to Securities of the Series that do not bear interest, the dates for certain required reports to the Trustee;

 

(y) any U.S. Federal Income tax consequences applicable to the Securities; and

 

(z) any other terms of Securities of the Series (which terms shall not be prohibited by the provisions of this Indenture).

 

All Securities of any one Series need not be issued at the same time and may be issued from time to time, consistent with the terms of this Indenture, if so provided by or pursuant to the Board Resolution, supplemental indenture or Officers’ Certificate referred to above, and the authorized principal amount of any Series may not be increased to provide for issuances of additional Securities of such Series, unless otherwise provided in such Board Resolution, supplemental indenture or Officers’ Certificate.

 

SECTION 2.03. Execution and Authentication. One or more Officers of the Issuer shall sign the Securities on behalf of the Issuer by manual or facsimile signature.

 

If an Officer whose signature is on a Security no longer holds that office at the time the Security is authenticated, the Security shall nevertheless be valid.

 

A Security shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent. The signature shall be conclusive evidence that the Security has been authenticated under this Indenture. A Security shall be dated the date of its authentication, unless otherwise provided by a Board Resolution, a supplemental indenture or an Officers’ Certificate.

 

The Trustee shall at any time, and from time to time, authenticate Securities for original issue in the principal amount provided in the Board Resolution, supplemental indenture hereto or Officers’ Certificate, upon receipt by the Trustee of an Issuer Order, an Officers’ Certificate delivered in accordance with section 10.04 and an Opinion of Counsel which shall state:

 

(1) that the form and the terms of such Securities have been established by a supplemental indenture or by or pursuant to a Board Resolution in accordance with Sections 2.01 and 2.02 and in conformity with the provisions of this Indenture;

 

(2) that such Securities when authenticated and delivered by the Trustee and issued by the Issuer in the manner and subject to any conditions specified in such Opinion of Counsel, will have been duly authorized, executed and delivered, and constitute valid and legally binding obligations of the Issuer, enforceable in accordance with their terms, subject to bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar laws relating to or affecting creditors’ rights generally and subject to general principles of equity, including concepts of materiality, reasonableness, good faith and fair dealing, regardless of whether such enforceability is considered in a proceeding in equity or at law; and

 

(3) that all conditions precedent in respect of the execution and delivery by the Issuer of such Securities have been complied with.

 

The aggregate principal amount of Securities of any Series outstanding at any time may not exceed any limit upon the maximum principal amount for such Series set forth in the Board Resolution, supplemental indenture hereto or Officers’ Certificate delivered pursuant to Section 2.02, except as provided in Section 2.08.

 

The Trustee may appoint an authenticating agent reasonably acceptable to the Issuer at the Issuer’s Expense to authenticate the Securities. Any such appointment shall be evidenced by an instrument signed by a Responsible Officer, a copy of which shall be furnished to the Issuer. Unless limited by the terms of such appointment, an authenticating agent may authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent has the same rights as any Registrar, Paying Agent or agent for service of notices and demands.

 

The Trustee shall have the right to decline to authenticate and deliver any Securities under this Section if the Trustee, being advised by counsel, determines that such action may not lawfully be taken or if the Trustee in good faith shall determine that such action would expose the Trustee to personal liability to existing Holders.

 

SECTION 2.04. Registrar and Paying Agent. The Issuer shall maintain, with respect to each Series of Securities, at the place or places specified with respect to such Series pursuant to Section 2.02, an office or agency where Securities of such Series may be presented for registration of transfer or for exchange (the “Registrar”) and an office or agency where Securities of such Series may be presented for payment (the “Paying Agent”). The Registrar shall keep a register with respect to each Series of Securities and of their transfer and exchange. The Issuer may have one or more co-registrars and one or more additional paying agents. The term “Paying Agent” includes any additional paying agent and the term “Registrar” includes any co-registrars. The Issuer hereby appoints the Trustee as Registrar and Paying Agent for each Series of Securities unless another Registrar or Paying Agent, as the case may be, is appointed prior to the time Securities of that Series are first issued.

 

The Issuer shall enter into an appropriate agency agreement with any Registrar or Paying Agent not a party to this Indenture, which shall incorporate the terms of the Trust Indenture Act. The agreement shall implement the provisions of this Indenture that 

 

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relate to such agent. The Issuer shall notify the Trustee in writing of the name and address of any such agent. If the Issuer fails to maintain a Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to appropriate compensation therefor pursuant to Section 7.07. The Issuer or any of its domestically organized Significant Subsidiaries may act as Paying Agent or Registrar.

 

The Issuer may remove any Registrar or Paying Agent upon written notice to such Registrar or Paying Agent and to the Trustee; provided, however, that no such removal shall become effective until (1) acceptance of any appointment by a successor as evidenced by an appropriate agreement entered into by the Issuer and such successor Registrar or Paying Agent, as the case may be, and delivered to the Trustee or (2) notification is received by the Trustee that the Trustee shall serve as Registrar or Paying Agent until the appointment of a successor in accordance with clause (1) above. The Registrar or Paying Agent may resign at any time upon written notice; provided, however, that the Trustee may resign as Registrar or Paying Agent only if the Trustee also resigns as Trustee in accordance with Section 7.08.

 

SECTION 2.05. Paying Agent to Hold Money in Trust. The Issuer shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust, for the benefit of Holders of any Series of Securities, or the Trustee, all money held by the Paying Agent for the payment of principal of or interest on the Series of Securities, and will notify the Trustee of any default by the Issuer in making any such payment. While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Issuer at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the Issuer or any of its Significant Subsidiaries) shall have no further liability for the money. If the Issuer or any of its Significant Subsidiaries acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of Holders of any Series of Securities all money held by it as Paying Agent.

 

SECTION 2.06. Holder Lists. The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Holders of each Series of Securities and shall otherwise comply with Trust Indenture Act Section 312(a). If the Trustee is not the Registrar, the Issuer shall furnish to the Trustee at least ten days before each interest payment date and at such other times as the Trustee may request in writing a list, in such form and as of such date as the Trustee may reasonably require, of the names and addresses of Holders of each Series of Securities.

 

SECTION 2.07. Transfer and Exchange. Where Securities of a Series are presented to the Registrar or a co-registrar with a request to register a transfer or to exchange them for an equal principal amount of Securities of the same Series, the Registrar shall register the transfer or make the exchange if its requirements for such transactions are met. To permit registrations of transfers and exchanges, the Trustee shall authenticate Securities at the Registrar’s request. No service charge shall be made for any registration of transfer or exchange (except as otherwise expressly permitted herein), but the Issuer may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer tax or similar governmental charge payable upon exchanges pursuant to Sections 2.11, 3.06 or 9.05).

 

Neither the Issuer nor the Registrar shall be required (a) to issue, register the transfer of, or exchange Securities of any Series for the period beginning at the opening of business fifteen days immediately preceding the mailing of a notice of redemption of Securities of that Series selected for redemption and ending at the close of business on the day of such mailing or (b) to register the transfer of or exchange Securities of any Series selected, called or being called for redemption as a whole or the portion being redeemed of any such Securities selected, called or being called for redemption in part.

 

The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Security (including any transfers between or among participants in the Depositary or beneficial owners of interests in any Global Security) other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof.

 

SECTION 2.08. Mutilated, Destroyed, Lost and Stolen Securities. If any mutilated Security is surrendered to the Trustee, the Issuer shall execute and the Trustee, upon receipt of an Issuer Order, shall authenticate and deliver in exchange therefor a new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

 

If there shall be delivered to the Issuer and the Trustee (i) evidence to their satisfaction of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be required by them to save each of them and any agent of either of them harmless, then, in the absence of notice to the Issuer or the Trustee that such Security has been acquired by a bona fide purchaser, the Issuer shall execute and the Trustee, upon receipt of an Issuer Order, shall authenticate and make available for delivery, in lieu of any such destroyed, lost or stolen Security, a new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

 

In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Issuer in its discretion may, instead of issuing a new Security, pay such Security.

 

Upon the issuance of any new Security under this Section, the Issuer may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.

 

Every new Security of any Series issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Issuer, whether or not the destroyed, lost or stolen Security shall be at any time 

 

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enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of that Series duly issued hereunder.

 

The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities.

 

SECTION 2.09. Outstanding Securities. The Securities outstanding at any time are all the Securities authenticated by the Trustee except for those canceled by it, those delivered to it for cancellation, those reductions in the interest on a Global Security effected by the Trustee in accordance with the provisions hereof and those described in this Section as not outstanding.

 

If a Security is replaced pursuant to Section 2.08, it ceases to be outstanding until the Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide purchaser.

 

If the Paying Agent holds at the Maturity of Securities of a Series money sufficient to pay such Securities payable on that date, then on and after that date such Securities of the Series cease to be outstanding and interest on them ceases to accrue.

 

A Security does not cease to be outstanding because the Issuer or an Affiliate of the Issuer holds the Security.

 

In determining whether the Holders of the requisite principal amount of outstanding Securities of any Series have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the principal amount of an Original Issue Discount Security that shall be deemed to be outstanding for such purposes shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the Maturity thereof pursuant to Section 6.02.

 

SECTION 2.10. Treasury Securities. In determining whether the Holders of the required principal amount of Securities of a Series have concurred in any request, demand, authorization, direction, notice, consent or waiver, Securities of a Series owned by the Issuer shall be disregarded, except that for the purposes of determining whether the Trustee shall be protected in relying on any such request, demand, authorization, direction, notice, consent or waiver only Securities of a Series that a Responsible Officer of the Trustee actually knows are so owned shall be so disregarded.

 

SECTION 2.11. Temporary Securities. Until Definitive Securities are ready for delivery, the Issuer may prepare and the Trustee, upon receipt of an Issuer Order, shall authenticate temporary Securities upon the Issuer’s Order. Temporary Securities shall be substantially in the form of Definitive Securities but may have variations that the Issuer considers appropriate for temporary Securities. Without unreasonable delay, the Issuer shall prepare and the Trustee, upon receipt of an Issuer Order, shall authenticate Definitive Securities of the same Series and date of maturity in exchange for temporary Securities. Until so exchanged, temporary Securities shall have the same rights under this Indenture as the Definitive Securities.

 

SECTION 2.12. Cancellation. The Issuer at any time may deliver Securities to the Trustee for cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Securities surrendered to them for registration of transfer, exchange or payment. The Trustee shall cancel all Securities surrendered for transfer, exchange, payment, replacement or cancellation in accordance with its procedures and upon the Issuer’s written request deliver a certificate of such cancellation to the Issuer. The Issuer may not issue new Securities to replace Securities that it has paid for or delivered to the Trustee for cancellation.

 

SECTION 2.13. Defaulted Interest. If the Issuer defaults in a payment of interest on a Series of Securities, it shall pay the defaulted interest, plus, to the extent permitted by law, any interest payable on the defaulted interest, to the persons who are Holders of the Series on a subsequent special record date. The Issuer shall fix the record date and payment date. At least 30 days before the record date, the Issuer shall send to the Trustee and to each Holder of the Series a notice that states the record date, the payment date and the amount of interest to be paid. The Issuer may pay defaulted interest in any other lawful manner.

 

SECTION 2.14. Global Securities.

 

(a) Terms of Securities. A Board Resolution, a supplemental indenture hereto or an Officers’ Certificate shall establish whether the Securities of a Series shall be issued in whole or in part in the form of one or more Global Securities and the Depositary for such Global Security or Securities.

 

(b) Transfer and Exchange. Notwithstanding any provisions to the contrary contained in Section 2.07 of this Indenture and in addition thereto, any Global Security shall be exchangeable pursuant to Section 2.07 of this Indenture for Securities registered in the names of Holders other than the Depositary for such Security or its nominee only if (i) such Depositary notifies the Issuer that it is unwilling or unable to continue as Depositary for such Global Security or if at any time such Depositary ceases to be a clearing agency registered under the Exchange Act, and, in either case, the Issuer fails to appoint a successor Depositary within 90 days of such event, (ii) the Issuer executes and delivers to the Trustee an Officers’ Certificate to the effect that such Global Security shall be so exchangeable or (iii) an Event of Default with respect to the Securities represented by such Global Security shall have happened and 

 

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be continuing. Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Securities registered in such names as the Depositary shall direct in writing in an aggregate principal amount equal to the principal amount of the Global Security with like tenor and terms.

 

Except as provided in this Section 2.14(b) a Global Security may not be transferred except as a whole by the Depositary with respect to such Global Security to a nominee of such Depositary, by a nominee of such Depositary to such Depositary or another nominee of such Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such a successor Depositary.

 

(c) Legend. Any Global Security issued hereunder shall bear a legend in substantially the following form:

 

“THIS GLOBAL SECURITY IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 9.05 OF THE INDENTURE, (II) THIS GLOBAL SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.07 OF THE INDENTURE, (III) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.12 OF THE INDENTURE AND (IV) THIS GLOBAL SECURITY MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE ISSUER (AS DEFINED IN THE INDENTURE GOVERNING THIS SECURITY).”

 

(d) Acts of Holders. The Depositary, as a Holder, may appoint agents and otherwise authorize participants to give or take any request, demand, authorization, direction, notice, consent, waiver or other action which a Holder is entitled to give or take under this Indenture.

 

(e) Payments. Notwithstanding the other provisions of this Indenture, unless otherwise specified as contemplated by Section 2.02, payment of the principal of and interest, if any, on any Global Security shall be made to the Holder thereof.

 

(f) Consents, Declaration and Directions. Except as provided in Section 2.14(e), the Issuer, the Trustee and any Agent shall treat a person as the Holder of such principal amount of outstanding Securities of such Series represented by a Global Security as shall be specified in a written statement of the Depositary with respect to such Global Security, for purposes of obtaining any consents, declarations, waivers or directions required to be given by the Holders pursuant to this Indenture.

 

(g) Neither the Trustee nor any Agent shall have any responsibility or liability for any actions taken or not taken by the Depositary.

 

SECTION 2.15. CUSIP Numbers. The Issuer in issuing the Securities may use “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of redemption and that reliance may be placed only on the other elements of identification printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers. The Issuer will promptly notify the Trustee in writing of any change in “CUSIP” numbers.

 

ARTICLE III

 

Redemption

 

SECTION 3.01. Notices to Trustee. The Issuer, with respect to any Series of Securities, may elect to redeem and pay the Series of Securities or may covenant to redeem and pay the Series of Securities or any part thereof prior to the Stated Maturity thereof at such time and on such terms provided for in such Series of Securities. If a Series of Securities is redeemable and the Issuer wants or is obligated to redeem prior to the Stated Maturity thereof all or part of the Series of Securities pursuant to the terms of such Securities, it shall notify the Trustee in writing of the redemption date and the principal amount of Securities of the Series to be redeemed and the redemption price. The Issuer shall give such notice to the Trustee at least 10 days before the redemption notice is to be sent unless the Trustee consents to a shorter period.

 

SECTION 3.02. Selection of Securities To Be Redeemed. Unless otherwise provided for a particular Series of Securities by a Board Resolution, a supplemental indenture or an Officers’ Certificate, if fewer than all the Securities of a particular Series are to be redeemed or purchased, the Trustee shall select the Securities of such Series to be redeemed or purchased pro rata or by lot or by a method that complies with applicable Depositary requirements. The Trustee shall make the selection at least 30 days but no more than 60 days before the redemption date from outstanding Securities of a Series not previously called for redemption. Securities and portions thereof that the Trustee selects shall be in principal amounts of $1,000 or integral multiples of $1,000. Provisions of this Indenture that apply to Securities called for redemption also apply to portions of Securities called for redemption. The Trustee shall promptly notify the Issuer of the Securities (or portions thereof) to be redeemed.

 

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SECTION 3.03. Notice of Redemption. Unless otherwise provided for a particular Series of Securities by a Board Resolution, a supplemental indenture or an Officers’ Certificate, at least 30 days but not more than 60 days before a date for redemption of Securities, the Issuer shall send a notice of redemption to each Holder of Securities to be redeemed at such Holder’s registered address.

 

The notice shall identify the Securities to be redeemed and shall state:

 

(1) the redemption date;

 

(2) the redemption price;

 

(3) if any Security is being redeemed in part, the portion of the principal amount of such Security to be redeemed and that, after the redemption date upon surrender of such Security, a new Security or Securities in principal amount equal to the unredeemed portion shall be issued upon cancellation of the original Security;

 

(4) the name and address of the Paying Agent;

 

(5) that Securities called for redemption must be surrendered to the Paying Agent to collect the redemption price;

 

(6) that, upon the satisfaction of any conditions to such redemption set forth in the notice of redemption, and unless the Issuer defaults in making such redemption payment or the Paying Agent is prohibited from making such payment pursuant to the terms of this Indenture, interest on Securities (or portion thereof) called for redemption ceases to accrue on and after the redemption date;

 

(7) the paragraph of the Securities and/or provision of this Indenture pursuant to which the Securities called for redemption are being redeemed;

 

(8) the CUSIP or ISIN number, if any, printed on the Securities being redeemed; and

 

(9) that no representation is made as to the correctness or accuracy of the CUSIP or ISIN number, if any, listed in such notice or printed on the Securities.

 

In addition, if such redemption is subject to the satisfaction of one or more conditions precedent, such notice shall describe each such condition and, if applicable, shall state that, in the Issuer’s discretion, the redemption date may be delayed until such time as any or all such conditions shall be satisfied, or such redemption may not occur and such notice may be rescinded in the event that any or all such conditions shall not have been satisfied by the redemption date stated in such notice, or by the redemption date as so delayed.

 

At the Issuer’s written request in accordance with Section 3.01 hereof, the Trustee shall give the notice of redemption as provided to it in the Issuer’s name and at the Issuer’s expense. In such event, the Issuer shall provide the Trustee with the information required by this Section.

 

SECTION 3.04. Effect of Notice of Redemption. Once notice of redemption is sent, Securities called for redemption become due and payable on the redemption date and at the redemption price stated in the notice, subject to the satisfaction of any conditions precedent provided in such notice. Upon surrender to the Paying Agent, such Securities shall be paid at the redemption price stated in the notice.

 

Failure to give notice or any defect in the notice to any Holder shall not affect the validity of the notice to any other Holder.

 

SECTION 3.05. Deposit of Redemption Price. Prior to 11:00 a.m. (New York City time) on the redemption date for a Series of Securities denominated in Dollars, or as otherwise agreed upon among the Trustee, the Issuer and the paying agent for any Series of Securities denominated in a currency other than Dollars, the Issuer shall deposit with the Paying Agent (or, if the Issuer or a Subsidiary of the Issuer is the Paying Agent, shall segregate and hold in trust) money sufficient to pay the redemption price of, and accrued interest on, all Securities to be redeemed on that date, other than Securities or portions of Securities called for redemption that have been delivered by the Issuer to the Trustee for cancellation. The Paying Agent shall as promptly as practicable return to the Issuer any money deposited with it by the Issuer in excess of the amounts necessary to pay the redemption price of, and accrued interest on, all Securities to be redeemed. If such money is then held by the Issuer in trust and is not required for such purpose it shall be discharged from such trust. The Issuer at any time may require a Paying Agent to pay all money held by it to the Trustee and to account for any funds disbursed by the Paying Agent. Upon complying with this Section, the Paying Agent shall have no further liability for the money delivered to the Trustee.

 

SECTION 3.06. Securities Redeemed in Part. Upon surrender of a Security that is redeemed in part, the Issuer shall execute and the Trustee shall authenticate for the Holder (at the Issuer’s expense) a new Security equal in principal amount to the unredeemed portion of the Security surrendered.

 

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ARTICLE IV

 

Covenants

 

SECTION 4.01. Payment of Securities. The Issuer shall promptly make all payments in respect of each Series of Securities on the dates and in the manner provided in such Series of Securities and in this Indenture. Such payments shall be considered made on the date due if on such date the Trustee or the Paying Agent holds, in accordance with this Indenture, money sufficient to make all payments with respect to such Securities then due and the Trustee or the Paying Agent, as the case may be, is not prohibited from paying such money to the Holders on that date pursuant to the terms of this Indenture.

 

SECTION 4.02. SEC Reports. Unless otherwise provided for a particular Series of Securities in a Board Resolution, a supplemental indenture or an Officers’ Certificate, notwithstanding that the Issuer may not be subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, the Issuer shall provide the Trustee and Holders within the time periods (including any extensions thereof) specified in the SEC’s rules and regulations copies of its annual report and quarterly reports that are specified in Sections 13 and 15(d) of the Exchange Act. Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Issuer’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers’ Certificates). The Issuer also shall comply with the other provisions of Trust Indenture Act Section 314(a).  Notwithstanding the foregoing, the Issuer will be deemed to have furnished such reports to the Trustee and the Holders if the Issuer has filed such reports with the SEC via the EDGAR filing system (or any successor thereto) and such reports are publicly available; provided, however, that the Trustee shall have no obligation whatsoever to determine whether or not such information, documents or reports have been filed pursuant to the EDGAR filing system (or its successor).

 

SECTION 4.03. Compliance Certificate. The Issuer shall deliver to the Trustee within 120 days after the end of each Fiscal Year of the Issuer (commencing with the Fiscal Year ended December 31, 2014) an Officers’ Certificate stating that in the course of the performance by the signers of their duties as Officers of the Issuer they would normally have knowledge of any Default and whether or not the signers know of any Default that occurred during such period. If they do, the certificate shall describe the Default, its status and what action the Issuer is taking or proposes to take with respect thereto. The Issuer also shall comply with Trust Indenture Act Section 314(a)(4).

 

SECTION 4.04. Further Instruments and Acts. The Issuer shall execute and deliver to the Trustee such further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purpose of this Indenture.

 

SECTION 4.05. Original Issue Discount.  In the case of Original Discount Securities, the Issuer shall file with the Trustee promptly at the end of each calendar year (i) a written notice specifying the amount of original issue discount (including daily rates and accrual periods) accrued on Outstanding Securities as of the end of such year and (ii) such other specific information relating to such original issue discount as may then be relevant under the Internal Revenue Code of 1986, as amended from time to time.

 

ARTICLE V

 

Successor Companies

 

SECTION 5.01. Merger and Consolidation. Unless otherwise provided for a particular Series of Securities in a Board Resolution, a supplemental indenture or an Officers’ Certificate, the Issuer shall not consolidate with or merge with or into, or convey, transfer or lease all or substantially all its properties and assets to, any Person unless:

 

(i) the resulting, surviving or transferee Person (the “Successor Company”) shall be a corporation or limited liability company organized and existing under the laws of the United States of America, any State thereof or the District of Columbia, and the Successor Company (if not the Issuer) shall expressly assume, by a supplemental indenture, executed and delivered to the Trustee, in form satisfactory to the Trustee, all the obligations of the Issuer under the Securities and this Indenture;

 

(ii) immediately after giving effect to such transaction no Event of Default shall have occurred and be continuing; and

 

(iii) the Issuer shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, merger or transfer and such supplemental indenture (if any) comply with this Indenture.

 

The Successor Company shall succeed to, and be substituted for, and may exercise every right and power of, the Issuer under this Indenture (as modified or supplemented by a Board Resolution, a supplemental indenture or an Officers’ Certificate), and the 

 

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predecessor Issuer, except in the case of a lease of all or substantially all of its assets, shall be released from the obligation to pay the principal of and interest on the Securities.

 

ARTICLE VI

 

Defaults And Remedies

 

SECTION 6.01. Events of Default. Unless otherwise provided for a particular Series of Securities by a Board Resolution, a supplemental indenture or an Officers’ Certificate, each of the following constitutes an “Event of Default” with respect to each Series of Securities:

 

(1) the Issuer’s default in any payment of the principal amount of (or, in the case of Original Issue Discount Securities of that Series, the portion thereby specified in the terms of such Security), or premium, if any, on any Security of that Series when such amount becomes due and payable at Stated Maturity, upon acceleration, required redemption or otherwise;

 

(2) the Issuer’s failure to pay interest on any Security of that Series when such interest becomes due and payable, and such failure continues for a period of 30 days;

 

(3) the Issuer fails to comply with Section 5.01;

 

(4) the Issuer fails to comply with any of its covenants or agreements contained in the Securities of that Series or this Indenture (other than those referred to in (1), (2), or (3) above) and such failure continues for 60 days after the notice specified below;

 

(5) the Issuer or a Significant Subsidiary pursuant to or within the meaning of any Bankruptcy Law:

 

(A) commences a voluntary case;

 

(B) consents to the entry of an order for relief against it in an involuntary case;

 

(C) consents to the appointment of a Custodian of it or for any substantial part of its property; or

 

(D) makes a general assignment for the benefit of its creditors or takes any comparable action under any foreign laws relating to insolvency; or

 

(6) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

 

(A) is for relief against the Issuer or a Significant Subsidiary in an involuntary case;

 

(B) appoints a Custodian of the Issuer or a Significant Subsidiary or for any substantial part of its property; or

 

(C) orders the winding up or liquidation of the Issuer or a Significant Subsidiary or any similar relief is granted under any foreign laws and the order or decree remains unstayed and in effect for 60 days.

 

The foregoing shall constitute Events of Default whatever the reason for any such Event of Default and whether it is voluntary or involuntary or is effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body.

 

The term “Bankruptcy Law” means Title 11, United States Code, or any similar Federal or state law for the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator, custodian or similar official under any Bankruptcy Law.

 

A Default under clause (4) above is not an Event of Default with respect to any Series of Securities until the Trustee or the Holders of at least 25% in principal amount of the outstanding Securities of that Series notify the Issuer of the Default and the Issuer does not cure such Default within the time specified in clause (4) after receipt of such notice. Such notice must specify the Default, demand that it be remedied and state that such notice is a “Notice of Default.”

 

The Issuer shall deliver to the Trustee, within 30 days after the occurrence thereof, written notice in the form of an Officers’ Certificate of any event which with the giving of notice or the lapse of time would become an Event of Default its status and what action the Issuer is taking or proposes to take with respect thereto (provided that, solely with respect to an Event of Default under clause (5) or (6) above, no such status or description of action is required).

 

SECTION 6.02. Acceleration. If an Event of Default with respect to any Series of Securities at the time outstanding (other than an Event of Default specified in Section 6.01(5) or (6) with respect to the Issuer) occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the outstanding Securities of that Series by written notice to the Issuer (and to the Trustee if such notice is given by the Holders), may declare the principal amount of (or, in the case of Original Issue Discount Securities of that Series, the portion thereby specified in the terms of such Security), premium, if any, and accrued and unpaid interest on all the Securities of that Series to be due and payable. Upon such a declaration, such amounts shall be due and payable immediately. If an Event of Default specified in Section 6.01(5) or (6) with respect to the Issuer occurs, the principal amount of (or, in the case of Original Issue Discount Securities of that Series, the portion thereby specified in the terms of such Security), premium, if 

 

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any, and accrued and unpaid interest on all the Securities of each Series of Security shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder. The Holders of a majority in principal amount of the Securities of any Series of Securities by written notice to the Trustee may rescind an acceleration of that Series of Securities and its consequences if the rescission would not conflict with any judgment or decree and if all existing Events of Default with respect to such Series of Securities have been cured or waived except nonpayment of the principal amount of (or, in the case of Original Issue Discount Securities of that Series, the portion thereby specified in the terms of such Security), premium, if any, and accrued and unpaid interest on all Securities of that Series that has become due solely because of acceleration. No such rescission shall affect any subsequent Default or impair any right consequent thereto.

 

SECTION 6.03. Other Remedies. If an Event of Default with respect to any Series of Securities occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of the principal amount of (or, in the case of Original Issue Discount Securities of that Series, the portion thereby specified in the terms of such Security), premium, if any, and accrued and unpaid interest on the Securities of that Series or to enforce the performance of any provision of the Securities of that Series or this Indenture.

 

The Trustee may institute and maintain a suit or legal proceeding even if it does not possess any of the Securities of a Series or does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder in exercising any right or remedy accruing upon an Event of Default with respect to any Series of Securities shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive of any other remedy. All available remedies are cumulative.

 

SECTION 6.04. Waiver of Past Defaults. The Holders of a majority in aggregate principal amount of the Securities of any Series then outstanding may by written notice to the Trustee waive an existing Default and its consequences except (i) a Default in the payment of the principal amount of (or, in the case of Original Issue Discount Securities of that Series, the portion thereby specified in the terms of such Security), premium, if any, and accrued and unpaid interest on a Security of that Series, (ii) a Default arising from the failure to redeem or purchase any Security of that Series when required pursuant to the terms of this Indenture or (iii) a Default in respect of a provision that under Section 9.02 cannot be amended without the consent of each Holder of that Series affected. When a Default is waived, it is deemed cured, but no such waiver shall extend to any subsequent or other Default or impair any consequent right.

 

SECTION 6.05. Control by Majority. The Holders of a majority in principal amount of the outstanding Securities of any Series may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on the Trustee with respect to that Series. However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture or, subject to Section 7.01, that the Trustee determines is unduly prejudicial to the rights of any other Holder of that Series or that would subject the Trustee to personal liability; provided, however, that the Trustee may take any other action deemed proper by the Trustee that is not inconsistent with such direction. Prior to taking any action hereunder, the Trustee shall be entitled to indemnification satisfactory to it in its sole discretion against all losses and expenses caused by taking or not taking such action.

 

SECTION 6.06. Limitation on Suits. Except to enforce the right to receive payment of the principal amount of (or, in the case of Original Issue Discount Securities, the portion thereby specified in the terms of such Security), premium, if any, and accrued and unpaid interest on a Security of any Series when due, no Holder of a Security of that Series may pursue any remedy with respect to this Indenture or the Securities of that Series unless:

 

(1) the Holder previously gave the Trustee written notice stating that an Event of Default with respect to that Series is continuing;

 

(2) the Holders of at least 25% in principal amount of the outstanding Securities of that Series make a written request to the Trustee to pursue the remedy;

 

(3) such Holder or Holders of that Series offer to the Trustee security or indemnity satisfactory to the Trustee against any loss, liability or expense;

 

(4) the Trustee does not comply with the request within 60 days after receipt of the request and the offer of security or indemnity; and

 

(5) the Holders of a majority in principal amount of the outstanding Securities of that Series do not give the Trustee a direction inconsistent with such request during such 60-day period.

 

A Holder of Securities of any Series may not use this Indenture to prejudice the rights of another Holder of that Series or to obtain a preference or priority over another Holder of that Series (it being understood that the Trustee does not have an affirmative duty to ascertain whether or not such actions or forbearances are unduly prejudicial to such Holders).

 

SECTION 6.07. Rights of Holders to Receive Payment. Notwithstanding any other provision of this Indenture, the right of any Holder to receive payment of the principal amount of (or, in the case of Original Issue Discount Securities, the portion thereby specified in the terms of such Security), premium, if any, and accrued and unpaid interest on the Securities held by such Holder, on or after their Maturity, or to bring suit for the enforcement of any such payment on or after their Maturity, shall not be impaired or affected without the consent of such Holder.

 

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SECTION 6.08. Collection Suit by Trustee. If an Event of Default specified in Section 6.01(1) or (2) occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Issuer for the whole amount then due and owing (together with interest on any unpaid interest to the extent lawful) and the amounts provided for in Section 7.07 to cover the costs and expenses of collection, including the reasonable compensation, expenses disbursement and advances of the Trustee, its agents and its counsel.

 

SECTION 6.09. Trustee May File Proofs of Claim. The Trustee may file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee and the Holders allowed in any judicial proceedings relative to the Issuer or any of its Subsidiaries, their creditors or their property and, unless prohibited by law or applicable regulations, may vote on behalf of the Holders in any election of a trustee in bankruptcy or other Person performing similar functions, and any Custodian in any such judicial proceeding is hereby authorized by each Holder to make payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and its counsel, and any other amounts due the Trustee under Section 7.07.

 

SECTION 6.10. Priorities. If the Trustee collects any money or property pursuant to this Article VI with respect to any Series of Securities, it shall pay out the money or property in the following order:

 

FIRST: costs and expenses of collection, including all sums paid or advanced by the Trustee hereunder and the compensation, expenses and disbursements of the Trustee, its agents and its counsel and all other amounts due to the Trustee under Section 7.07;

 

SECOND: to Holders for amounts due and unpaid on the Securities of that Series for the principal amount of (or, in the case of Original Issue Discount Securities of that Series, the portion thereby specified in the terms of such Security), premium, if any, and accrued and unpaid interest, ratably, without preference or priority of any kind, according to the amounts due and payable on the Securities of that Series for the principal amount of (or, in the case of Original Issue Discount Securities of that Series, the portion thereby specified in the terms of such Security), premium, if any, and accrued and unpaid interest, respectively; and

 

THIRD: to the Issuer.

 

The Trustee may fix a record date and payment date for any payment to Holders pursuant to this Section. At least 15 days before such record date, the Trustee shall mail to each Holder and the Issuer a notice that states the record date, the payment date and amount to be paid.

 

SECTION 6.11. Undertaking for Costs. In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may require the filing, by any party litigant in the suit, of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.07 or a suit by Holders of more than 10% in principal amount of the Securities of any Series.

 

SECTION 6.12. Waiver of Stay or Extension Laws. The Issuer (to the extent it may lawfully do so) shall not at any time insist upon, plead, or in any manner whatsoever claim to take the benefit or advantage of, any stay or extension law, wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture; and the Issuer (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and shall not hinder, delay or impede the execution of any power herein granted to the Trustee, but shall suffer and permit the execution of every such power as though no such law had been enacted.

 

ARTICLE VII

 

Trustee

 

SECTION 7.01. Duties of Trustee. (a) If an Event of Default has occurred and is continuing with respect to any Series of Securities, the Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in its exercise thereof as a prudent Person would exercise or use under the circumstances in the conduct of such Person’s own affairs.

 

(b) Except during the continuance of an Event of Default with respect to any Series of Securities:

 

(1) the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture with respect to the Securities of that Series, as modified or supplemented by a Board Resolution, a supplemental indenture or an Officers’ Certificate and no implied covenants or obligations shall be read into this Indenture against the Trustee; and

 

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(2) in the absence of bad faith on its part, the Trustee may, with respect to Securities of that Series, conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture. However, in the case of any such certificates or opinions specifically required by the terms hereof, the Trustee shall examine the certificates and opinions to determine whether they conform to the requirements of this Indenture (but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein).

 

(c) The Trustee may not be relieved from liability for its own grossly negligent action, its own grossly negligent failure to act or its own willful misconduct, except that:

 

(1) this paragraph does not limit the effect of paragraph (b) of this Section;

 

(2) the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer unless it is proved that the Trustee was grossly negligent in ascertaining the pertinent facts; and

 

(3) the Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.05.

 

(d) Whether or not expressly so provided, every provision of this Indenture that in any way relates to the Trustee is subject to the provisions of this Section.

 

(e) The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Issuer.

 

(f) Money held in trust by the Trustee need not be segregated from funds except to the extent required by law.

 

(g) No provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers.

 

(h) Every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section and to the provisions of the Trust Indenture Act.

 

(i) The Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of a majority in principal amount of the Securities of any series, relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to the Securities of such series.

 

SECTION 7.02. Rights of Trustee. (a) The Trustee may conclusively rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed or presented by the proper Person. The Trustee need not investigate any fact or matter stated in the document.

 

(b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an Opinion of Counsel or both. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on the Officers’ Certificate or Opinion of Counsel.

 

(c) The Trustee may act or perform duties hereunder through agents or attorneys and shall not be responsible for the misconduct or negligence of any agent or attorney appointed with due care.

 

(d) The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers; provided, however, that the Trustee’s conduct does not constitute willful misconduct or gross negligence.

 

(e) The Trustee may consult with counsel of its selection, and the advice or opinion of counsel with respect to legal matters relating to this Indenture and the Securities, shall be full and complete authorization and protection from liability in respect to any action taken, omitted or suffered by it hereunder in good faith and in accordance with the advice or opinion of such counsel.

 

(f) The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond, debenture, note or other paper or document, but the Trustee, in its reasonable discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall reasonably determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Issuer, personally or by agent or attorney at the sole cost of the Issuer and shall incur no liability or additional liability of any kind by reason of such inquiry or investigation.

 

(g) The Trustee shall not be deemed to have notice or charged with knowledge of any Default or Event of Default with respect to the Securities of any Series unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any event which is in fact such a default is received from the Issuer or any Holders of such Securities by the Trustee at the Corporate Trust Office of the Trustee, and such notice references such Securities and this Indenture.

 

(h) The rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to and shall be enforceable by, the Trustee in each of its capacities hereunder, and to each agent, custodian and other Person employed to act hereunder.

 

(i) The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture, unless such Holders shall have offered to the Trustee security or 

 

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indemnity satisfactory to the Trustee against the costs, expenses and liabilities which might be incurred by the Trustee in compliance with such request or direction.

 

(j) The Trustee may from time to time request that the Issuer deliver an Officers’ Certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to the Indenture, which Officers’ Certificate may be signed by any persons authorized to sign an Officers’ Certificate, including any person specified as so authorized in any such certificate previously delivered and not superseded.

 

(k) The permissive right of the Trustee to take any action under this Indenture shall not be construed as a duty to so act.

 

(l) In no event shall the Trustee be responsible or liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action.

 

(m) Any request or direction of the Issuer mentioned herein shall be sufficiently evidenced by an Issuer Order and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution.

 

(n) Whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, conclusively rely upon an Officers’ Certificate.

 

(o) The Trustee shall not be required to give any bond or surety in respect of the performance of its powers and duties hereunder.

 

SECTION 7.03. Individual Rights of Trustee. The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Issuer or its Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent, Registrar or co-paying agent may do the same with like rights. However, the Trustee must comply with Sections 7.10 and 7.11.

 

SECTION 7.04. Trustee’s Disclaimer. The Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the Issuer’s use or application of the proceeds from the Securities, it will not be responsible for the use or application of any money received by any Paying Agent (other than itself as Paying Agent), and it shall not be responsible for any statement in this Indenture, in the Securities, or in any document executed in connection with the sale of the Securities, other than those set forth in a Trustee’s certificate of authentication.

 

SECTION 7.05. Notice of Defaults. If a Default with respect to Securities of any Series occurs and is continuing and if it is actually known to a Responsible Officer of the Trustee, the Trustee shall mail to each Holder of that Series notice of the Default within 90 days after it occurs. Except in the case of a Default with respect to Securities of any Series in payment of the principal amount of (or, in the case of Original Issue Discount Securities of that Series, the portion thereby specified in the terms of such Security), premium, if any, and accrued and unpaid interest on any Security of that Series, the Trustee may withhold the notice if and so long as it in good faith determines that withholding the notice is in the interests of Holders.

 

SECTION 7.06. Reports by Trustee to Holder. As promptly as practicable after each May 15 beginning with the first May 15 after the issuance of Securities pursuant to this Indenture, for so long as Securities remain outstanding, the Trustee shall mail to each Holder a brief report dated as of such reporting date that complies with Section 313(a) of the Trust Indenture Act. The Trustee shall also comply with Section 313(b) of the Trust Indenture Act.

 

A copy of each report at the time of its mailing to Holders shall be filed with the SEC and each stock exchange (if any) on which the Securities are listed. The Issuer agrees to notify promptly the Trustee in writing whenever the Securities become listed on any stock exchange and of any delisting thereof.

 

SECTION 7.07. Compensation and Indemnity. The Issuer shall pay to the Trustee from time to time such compensation for its services as the Issuer and the Trustee shall from time to time agree in writing. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. The Issuer shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses, disbursements and advances incurred or made by it, including costs of collection, costs of preparation and sending of notices to Holders and reasonable costs of counsel retained by the Trustee and any predecessor trustee or their agents or otherwise in addition to the compensation for its services. Such expenses shall include the reasonable compensation and expenses, disbursements and advances of the Trustee’s agents, counsel, accountants and experts. The Issuer shall indemnify the Trustee or any predecessor Trustee and their agents against any and all loss, liability, claim, damage or expense (including reasonable attorneys’ fees) incurred by or in connection with the administration of this trust and the performance of its duties hereunder, including the costs and expenses of enforcing the Indenture (including this Section 7.07) and of defending itself against any claims (whether asserted by any Holder, the Issuer or otherwise). The Trustee shall notify the Issuer of any claim for which it may seek indemnity promptly upon a Responsible Officer obtaining actual knowledge thereof; provided, however, that any failure so to notify the Issuer shall not relieve the Issuer of its indemnity obligations hereunder. The Issuer need not reimburse any expense or indemnify against any loss, liability or expense incurred by an indemnified party through such party’s own willful misconduct, gross negligence or bad faith.

 

To secure the Issuer’s payment obligations in this Section, the Trustee shall have a lien prior to the Securities on all money or property held or collected by the Trustee other than money or property held in trust to pay the principal of and interest and any liquidated damages on particular Securities.

 

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The Issuer’s payment obligations pursuant to this Section shall survive the satisfaction or discharge of this Indenture, any rejection or termination of this Indenture under any bankruptcy law or the resignation or removal of the Trustee. When the Trustee incurs expenses after the occurrence of a Default specified in Section 6.01(5) or (6) with respect to the Issuer, the expenses are intended to constitute expenses of administration under the Bankruptcy Law.

 

SECTION 7.08. Replacement of Trustee. The Trustee may resign at any time with respect to the Securities of any Series by so notifying the Issuer. The Holders of a majority in principal amount of the Securities of any Series may remove the Trustee and may appoint a successor Trustee with respect to such Series of Securities. The Issuer shall remove the Trustee if:

 

(1) the Trustee fails to comply with Section 7.10;

 

(2) the Trustee is adjudged bankrupt or insolvent;

 

(3) a receiver or other public officer takes charge of the Trustee or its property; or

 

(4) the Trustee otherwise becomes incapable of acting.

 

If the Trustee resigns, is removed by the Issuer or by the Holders of a majority in principal amount of the Securities of any Series and such Holders do not reasonably promptly appoint a successor Trustee or if a vacancy exists in the office of Trustee for any reason (the Trustee in such event being referred to herein as the retiring Trustee), the Issuer shall promptly appoint a successor Trustee. Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of the then outstanding Securities may appoint a successor Trustee to replace the successor Trustee appointed by the Company.

 

A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Issuer. Thereupon the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to Holders of that Series of Securities. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to the lien provided for in Section 7.07.

 

If a successor Trustee does not take office within 30 days after the retiring Trustee resigns or is removed, the retiring Trustee or the Holders of 10% in principal amount of the Securities of that Series may petition, at the expense of the Issuer, any court of competent jurisdiction for the appointment of a successor Trustee.

 

If the Trustee fails to comply with Section 7.10, after written notice hereto, the Holders of at least 10% in principal amount of that Series of Securities may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

 

Notwithstanding the replacement of the Trustee pursuant to this Section 7.08, the Issuer’s obligations under Section 7.07 shall continue for the benefit of the retiring Trustee.

 

SECTION 7.09. Successor Trustee by Merger. If the Trustee consolidates with, merges or converts into, or transfers all or substantially all its corporate-trust business or assets to, another corporation or banking association, the resulting, surviving or transferee corporation without any further act shall be the successor Trustee.

 

In case at the time such successor or successors by merger, conversion or consolidation to the Trustee shall succeed to the trusts created by this Indenture any of the Securities shall have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication of any predecessor trustee, and deliver such Securities so authenticated; and if at that time any of the Securities shall not have been authenticated, any such successor to the Trustee may authenticate such Securities either in the name of any predecessor hereunder or in the name of the successor to the Trustee; and in all such cases such certificates shall have the full force which it is anywhere in the Securities or in this Indenture provided that the certificate of the Trustee shall have.

 

SECTION 7.10. Eligibility; Disqualification. The Trustee shall at all times satisfy the requirements of Trust Indenture Act Section 310(a). The Trustee shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition. The Trustee shall comply with Trust Indenture Act Section 310(b); provided, however, that there shall be excluded from the operation of Trust Indenture Act Section 310(b)(1) any indenture or indentures under which other securities or certificates of interest or participation in other securities of the Issuer are outstanding if the requirements for such exclusion set forth in Trust Indenture Act Section 310(b)(1) are met.

 

SECTION 7.11. Preferential Collection of Claims Against the Issuer. The Trustee shall comply with Trust Indenture Act Section 311(a), excluding any creditor relationship listed in Trust Indenture Act Section 311(b). A Trustee who has resigned or has been removed shall be subject to Trust Indenture Act Section 311(a) to the extent indicated.

 

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ARTICLE VIII

 

Legal Defeasance And Covenant Defeasance

 

SECTION 8.01. Option to Effect Legal Defeasance or Covenant Defeasance. The Issuer may, at the option of its Board of Directors evidenced by resolutions set forth in an Officers’ Certificate, at any time, elect to have either Section 8.02 or 8.03 hereof be applied to all outstanding Securities of any Series upon compliance with the conditions set forth below in this Article VIII.

 

Unless otherwise provided for in a Board Resolution, a supplemental indenture or an Officers’ Certificate, when (a) the Issuer has delivered to the Trustee for cancellation all Securities of a Series or (b) all outstanding Securities of a Series not theretofore delivered to the Trustee for cancellation shall have become due and payable, or are by their terms to become due and payable within one year or are to be called for redemption within one year, and the Issuer shall have deposited with the Trustee as trust funds the entire amount sufficient to pay at maturity or upon redemption of all outstanding Securities of the Series, and if, in either case, the Issuer shall also pay or cause to be paid all other sums payable under the Indenture by the Issuer, then the Indenture shall cease to be of further effect with respect to such Securities of such Series. The Trustee shall acknowledge satisfaction and discharge of the Indenture on demand of the Issuer accompanied by an Officers’ Certificate and an Opinion of Counsel and at the cost and expense of the Issuer.

 

SECTION 8.02. Legal Defeasance and Discharge. Upon the Issuer’s exercise under Section 8.01 hereof of the option applicable to this Section 8.02 with respect to any Series of Securities, the Issuer shall, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be deemed to have been discharged from its obligations with respect to all outstanding Securities of that Series on the date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means that the Issuer shall be deemed to have paid and discharged the entire Indebtedness represented by the outstanding Securities of that Series, which shall thereafter be deemed to be “outstanding” only for the purposes of Section 8.05 hereof and the other Sections of this Indenture referred to in (a) and (b) below, and to have satisfied all its other obligations under such Securities and this Indenture with respect to such Securities of such Series (and the Trustee, on demand of and at the expense of the Issuer, shall execute proper instruments acknowledging the same), except for the following provisions which shall survive until otherwise terminated or discharged hereunder:

 

(a) the rights of Holders of outstanding Securities of that Series to receive solely from the trust fund described in Section 8.04 hereof, and as more fully set forth in such Section, payments in respect of the principal of (or, in the case of Original Issue Discount Securities of that Series, the portion thereby specified in the terms of such Security), premium, if any, and interest on such Securities when such payment are due;

 

(b) the Issuer’s obligations with respect to such Securities of that Series under Article II;

 

(c) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the Issuer’s obligations in connection therewith; and this Article VIII.

 

(d) Subject to compliance with this Article VIII, the Issuer may exercise its option under this Section 8.02 notwithstanding the prior exercise of its option under Section 8.03 hereof.

 

SECTION 8.03. Covenant Defeasance. Upon the Issuer’s exercise under Section 8.01 hereof of the option applicable to this Section 8.03 with respect to any Series of Securities, the Issuer shall, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be released from its obligations under the covenants contained in a Board Resolution, a supplemental indenture or an Officers’ Certificate with respect to the outstanding Securities of that Series on and after the date the conditions set forth in Section 8.04 are satisfied (hereinafter, “Covenant Defeasance”), and the Securities of that Series shall thereafter be deemed not “outstanding” for the purposes of any direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed “outstanding” for all other purposes hereunder (it being understood that such Securities shall not be deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance means that, with respect to the outstanding Securities of that Series, the Issuer may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and such omission to comply shall not constitute a Default or an Event of Default with respect to such Securities under Section 6.01 hereof, but, except as specified above, the remainder of this Indenture and such Securities shall be unaffected thereby. In addition, upon the Issuer’s exercise under Section 8.01 hereof of the option applicable to this Section 8.03 hereof with respect to any Series of Securities, subject to the satisfaction of the conditions set forth in Section 8.04 hereof and Sections 6.01(3) and 6.01(4) hereof shall not constitute Events of Default with respect to such Securities.

 

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SECTION 8.04. Conditions to Legal or Covenant Defeasance. The following shall be the conditions to the application of either Section 8.02 or 8.03 hereof to the outstanding Securities:

 

In order to exercise either Legal Defeasance or Covenant Defeasance with respect to any Series of Securities:

 

(1) the Issuer must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders of that Series of Securities, cash in U.S. dollars (or the currency in which Securities of that Series is denominated), non-callable Government Securities, or a combination thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized independent registered public accounting firm, to pay the principal amount of (or, in the case of Original Issue Discount Securities of that Series, the portion thereby specified in the terms of such Security), premium, if any, and interest on the outstanding Securities of that Series on the stated date for payment thereof or on the applicable redemption date, as the case may be;

 

(2) in the case of an election under Section 8.02 hereof, the Issuer shall have delivered to the Trustee an Opinion of Counsel in the United States reasonably acceptable to the Trustee confirming that:

 

(a) the Issuer has received from, or there has been published by, the Internal Revenue Service a ruling; or

 

(b) since the date of this Indenture, there has been a change in the applicable federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the outstanding Securities of that Series will not recognize income, gain or loss for federal income tax purposes as a result of such Legal Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same time as would have been the case if such Legal Defeasance had not occurred;

 

(3) in the case of an election under Section 8.03 hereof, the Issuer shall have delivered to the Trustee an Opinion of Counsel in the United States reasonably acceptable to the Trustee confirming that the Holders of the outstanding Securities of that Series will not recognize income, gain or loss for federal income tax purposes as a result of such Covenant Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred;

 

(4) no Default or Event of Default with respect to that Series of Securities shall have occurred and be continuing either:

 

(a) on the date of such deposit (other than a Default or Event of Default with respect to that Series of Securities resulting from the borrowing of funds to be applied to such deposit); or

 

(b) insofar as Sections 6.01(5) or 6.01(6) hereof are concerned, at any time in the period ending on the 91st day after the date of deposit;

 

(5) such Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a default under, any material agreement or instrument (other than this Indenture) to which the Issuer or any of its Significant Subsidiaries are a party or by which the Issuer or any of its Significant Subsidiaries are bound;

 

(6) the Issuer shall have delivered to the Trustee an Opinion of Counsel to the effect that on the 91st day following the deposit, the trust funds will not be subject to the effect of any applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally;

 

(7) the Issuer shall have delivered to the Trustee an Officers’ Certificate stating that the deposit was not made by the Issuer with the intent of preferring the Holders of that Series of Securities over any other creditors of the Issuer or with the intent of defeating, hindering, delaying or defrauding any other creditors of the Issuer or others; and

 

(8) the Issuer shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for or relating to the Legal Defeasance or the Covenant Defeasance have been complied with.

 

SECTION 8.05. Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions. Subject to Section 8.06 hereof, all money and non-callable Government Securities (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04 hereof in respect of any outstanding Series of Securities shall be held in trust and applied by the Trustee, in accordance with the provisions of such Securities and this Indenture, to the payment, either directly or through any Paying Agent (including the Issuer acting as Paying Agent) as the Trustee may determine, to the Holders of such Securities of all sums due and to become due thereon in respect of principal, premium, if any, and interest, but such money need not be segregated from other funds except to the extent required by law.

 

The Issuer shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash or non-callable Government Securities deposited pursuant to Section 8.04 hereof or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of the outstanding Securities of that Series.

 

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Anything in this Article VIII to the contrary notwithstanding, the Trustee shall deliver or pay to the Issuer from time to time upon the written request of the Issuer any money or non-callable Government Securities held by it as provided in Section 8.04 hereof which, in the opinion of a nationally recognized independent registered public accounting firm expressed in a written certification thereof delivered to the Trustee (which may be the opinion delivered under Section 8.04(1) hereof), are in excess of the amount thereof that would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

 

SECTION 8.06. Repayment to the Issuer. Any money deposited with the Trustee or any Paying Agent, or then held by the Issuer, in trust for the payment of the principal of, premium, if any, or interest on any Security and remaining unclaimed for two years after such principal, and premium, if any, or interest has become due and payable shall be paid to the Issuer on its written request or (if then held by the Issuer) shall be discharged from such trust; and the Holder of such Security shall thereafter look only to the Issuer for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Issuer as trustee thereof, shall thereupon cease.

 

SECTION 8.07. Reinstatement. If the Trustee or Paying Agent is unable to apply any currency or non-callable Government Securities in accordance with Section 8.02 or 8.03 thereof, as the case may be, by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Issuer’s obligations under this Indenture and the Securities shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.02 or 8.03 hereof until such time as the Trustee or Paying Agent is permitted to apply all such money in accordance with Section 8.02 or 8.03 hereof, as the case may be; provided, however, that, if the Issuer makes any payment of principal of, premium, if any, or interest on any Security following the reinstatement of its obligations, the Issuer shall be subrogated to the rights of the Holders of such Securities to receive such payment from the money held by the Trustee or Paying Agent.

 

ARTICLE IX

 

Amendments

 

SECTION 9.01. Without Consent of Holders. The Issuer and the Trustee may amend this Indenture or the Securities without notice to or consent of any Holder:

 

(1) to evidence the succession of another Person to the Issuer pursuant to Article V and the assumption by such successor of the Issuer’s covenants, agreements and obligations in this Indenture and in the Securities;

 

(2) to surrender any right or power conferred upon the Issuer by this Indenture, to add to the covenants of the Issuer such further covenants, restrictions, conditions or provisions for the protection of the Holders of all or any Series of Securities as the Board of Directors of the Issuer shall consider to be for the protection of the Holders of such Securities, and to make the occurrence, or the occurrence and continuance, of a default in respect of any such additional covenants, restrictions, conditions or provisions a Default or an Event of Default under this Indenture; provided, however, that with respect to any such additional covenant, restriction, condition or provision, such amendment may provide for a period of grace after default, which may be shorter or longer than that allowed in the case of other Defaults, may provide for an immediate enforcement upon such Default, may limit the remedies available to the Trustee upon such Default or may limit the right of Holders of a majority in aggregate principal amount of the Securities of any Series to waive such default;

 

(3) to cure any ambiguity or correct or supplement any provision contained in this Indenture, in any supplemental indenture or in any Securities that may be defective or inconsistent with any other provision contained therein;

 

(4) to convey, transfer, assign, mortgage or pledge any property to or with the Trustee, or to make such other provisions in regard to matters or questions arising under this Indenture as shall not adversely affect the interests of any Holders of Securities of any Series;

 

(5) to modify or amend this Indenture in such a manner as to permit the qualification of this Indenture or any supplemental indenture under the Trust Indenture Act as then in effect;

 

(6) to add or to change any of the provisions of this Indenture to provide that Securities in bearer form may be registrable as to principal, to change or eliminate any restrictions on the payment of principal or premium with respect to Securities in registered form or of principal, premium or interest with respect to Securities in bearer form, or to permit Securities in registered form to be exchanged for Securities in bearer form, so as to not adversely affect the interests of the Holders of Securities or any coupons of any Series in any material respect or permit or facilitate the issuance of Securities of any Series in uncertificated form;

 

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(7) in the case of subordinated Securities, to make any change in the provisions of this Indenture or any supplemental indenture relating to subordination that would limit or terminate the benefits available to any holder of senior Indebtedness under such provisions (but only if each such holder of senior Indebtedness consents to such change);

 

(8) to add Guarantees with respect to the Securities or to secure the Securities;

 

(9) to make any change that does not adversely affect the rights of any Holder in any material respect;

 

(10) to add to, change, or eliminate any of the provisions of this Indenture with respect to one or more Series of Securities, so long as any such addition, change or elimination not otherwise permitted under this Indenture shall (A) neither apply to any Security of any Series created prior to the execution of such supplemental indenture and entitled to the benefit of such provision nor modify the rights of the Holders of any such Security with respect to the benefit of such provision or (B) become effective only when there is no such Security outstanding;

 

(11) to evidence and provide for the acceptance of appointment by a successor or separate Trustee with respect to the Securities of one or more Series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of this Indenture by more than one Trustee; or

 

(12) to establish the form or terms of Securities and coupons of any Series pursuant to Article II.

 

SECTION 9.02. With Consent of Holders. The Issuer and the Trustee may amend this Indenture or the Securities of any Series without notice to any Holder but with the written consent of the Holders of at least a majority in principal amount of the Securities of each Series then outstanding (including consents obtained in connection with a tender offer or exchange for the Securities) affected by such amendment. However, without the consent of each Holder affected, an amendment may not:

 

(1) make any change to the percentage of principal amount of the outstanding Securities of any Series, the consent of whose Holders is required for any amendment, or the consent of whose Holders is required for any waiver (of compliance with certain provisions of this Indenture or certain defaults hereunder and their consequences) provided for in this Indenture;

 

(2) reduce the principal amount of, premium, if any, or interest on, or extend the Stated Maturity or interest payment periods of, any Security;

 

(3) make any Security payable in money or securities other than those stated in the Security;

 

(4) make any change that adversely affects such Holder’s right to require the Issuer to purchase the Securities in accordance with the terms thereof and this Indenture;

 

(5) impair the right of any Holder to institute suit for the enforcement of any payment with respect to the Securities;

 

(6) in the case of any subordinated Securities, or coupons appertaining thereto, make any change in the provisions of this Indenture relating to subordination that adversely affects the rights of any Holder under such provisions; or

 

(7) make any change in Section 6.04 or 6.07 or the second sentence of this Section 9.02.

 

It shall not be necessary for the consent of the Holders under this Section to approve the particular form of any proposed amendment, but it shall be sufficient if such consent approves the substance thereof. After an amendment under this Section becomes effective, the Issuer shall send to all affected Holders a notice briefly describing such amendment. The failure to give such notice to all such Holders, or any defect therein, shall not impair or affect the validity of an amendment under this Section.

 

SECTION 9.03. Compliance with Trust Indenture Act. Every amendment to this Indenture or the Securities shall comply with the Trust Indenture Act as then in effect.

 

SECTION 9.04. Revocation and Effect of Consents and Waivers. A consent to an amendment or a waiver by a Holder of a Security shall bind the Holder and every subsequent Holder of that Security or portion of the Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent or waiver is not made on the Security. However, any such Holder or subsequent Holder may revoke the consent or waiver as to such Holder’s Security or portion of the Security if the Trustee receives the written notice of revocation before the date the amendment or waiver becomes effective. After an amendment or waiver becomes effective, it shall bind every Holder. An amendment or waiver becomes effective once both (i) the requisite number of consents have been received by the Issuer or the Trustee and (ii) such amendment or waiver has been executed by the Issuer and the Trustee.

 

The Issuer may, but shall not be obligated to, fix a record date for the purpose of determining the Holders entitled to give their consent or take any other action described above or required or permitted to be taken pursuant to this Indenture. If a record date is fixed, then notwithstanding the immediately preceding paragraph, those Persons who were Holders at such record date (or their duly 

 

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designated proxies), and only those Persons, shall be entitled to give such consent or to revoke any consent previously given or to take any such action, whether or not such Persons continue to be Holders after such record date. No such consent shall be valid or effective for more than 120 days after such record date.

 

SECTION 9.05. Notation on or Exchange of Securities. If an amendment changes the terms of a Security, the Trustee may require the Holder of the Security to deliver it to the Trustee. The Trustee may place an appropriate notation on the Security regarding the changed terms and return it to the Holder. Alternatively, if the Issuer or the Trustee so determines, the Issuer in exchange for the Security shall issue and the Trustee shall, upon receipt of an Issuer Order, authenticate a new Security that reflects the changed terms. Failure to make the appropriate notation or to issue a new Security shall not affect the validity of such amendment.

 

SECTION 9.06. Trustee To Sign Amendments. The Trustee shall sign any amendment authorized pursuant to this Article IX if the amendment does not affect the rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may but need not sign it. In signing such amendment the Trustee shall receive indemnity satisfactory to it, and (subject to Section 7.01) shall be fully protected in relying upon, an Officers’ Certificate and an Opinion of Counsel stating that such amendment is authorized or permitted by this Indenture and that such amendment is the legal, valid and binding obligation of the Issuer enforceable against it in accordance with its terms, subject to customary exceptions, and complies with the provisions hereof (including Section 9.03).

 

SECTION 9.07. Payment for Consent. Neither the Issuer nor any Affiliate of the Issuer shall, directly or indirectly, pay or cause to be paid any consideration, whether by way of interest, fee or otherwise, to any Holder for or as an inducement to any consent, waiver or amendment of any of the terms or provisions of this Indenture or the Securities unless such consideration is offered to be paid to all Holders of such Series of Securities, ratably, that so consent, waive or agree to amend in the time frame set forth in solicitation documents relating to such consent, waiver or agreement.

 

ARTICLE X

 

Miscellaneous

 

SECTION 10.01. Trust Indenture Act Controls. If any provision of this Indenture limits, qualifies or conflicts with another provision which is required to be included in this Indenture by the Trust Indenture Act, the required provision shall control.

 

SECTION 10.02. Notices. Unless otherwise provided herein, any notice or communication shall be in writing and delivered in person, sent in accordance with the Depositary’s applicable procedures, mailed by first-class mail or sent via electronic mail (in pdf format) addressed as follows:

 

If to the Issuer:

 

The Priceline Group Inc.

800 Connecticut Avenue

Norwalk, CT 06854

Fax: (203) 299-8915

Attention: General Counsel

 

with a copy to:

 

Cravath, Swaine & Moore LLP

825 Eighth Avenue

New York, NY 10019

Fax: (212) 474-3700

Attention: William P. Rogers Jr., Esq.

 

If to the Trustee:

 

Deutsche Bank Trust Company Americas

Trust and Agency Services

60 Wall Street, 16th Floor

New York, NY 10005

Attention: Corporates Team — The Priceline Group Inc.

Fax: 732-578-4635

 

with a copy to:

 

Deutsche Bank National Trust Company

100 Plaza One, 6th Floor

Jersey City, NJ 07311-3901

Attention: Corporates Team — The Priceline Group Inc.

Fax: 732-578-4635

 

The Issuer or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications.

 

Any notice or communication mailed to a Holder shall be sent to the Holder at the Holder’s address as it appears on the registration books of the Registrar and shall be sufficiently given if so sent within the time prescribed.

 

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Failure to send a notice or communication to a Holder or any defect in it shall not affect its sufficiency with respect to other Holders. If a notice or communication is mailed in the manner provided above, it is duly given, whether or not the addressee receives it.

 

The Trustee agrees to accept and act upon instructions and directions pursuant to this Indenture sent by unsecured e-mail, pdf, facsimile transmission or other similar unsecured electronic methods; provided, however, that the Trustee shall have received an incumbency certificate listing persons designated to give such instructions or directions and containing specimen signatures of such designated persons, which such incumbency certificate shall be amended and replaced whenever a person is to be added or deleted from the listing. For the avoidance of doubt, notice sent via electronic mail shall be deemed to be “written” for purposes of this Indenture. The Trustee agrees to accept and act upon instructions or directions in the form of an Officers’ Certificate pursuant to this Indenture sent by unsecured e-mail, pdf, facsimile transmission or other similar unsecured electronic methods. If the Issuer elects to give the Trustee e-mail or facsimile instructions (or instructions by a similar electronic method) and the Trustee in its discretion elects to act upon such instructions, the Trustee’s understanding of such instructions shall be deemed controlling. The Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee’s reliance upon and compliance with such instructions notwithstanding such instructions conflict or are inconsistent with a subsequent written instruction. The Issuer agrees to assume all risks arising out of the use of such electronic methods to submit instructions and directions to the Trustee, including without limitation the risk of the Trustee acting on unauthorized instructions, and the risk or interception and misuse by third parties.

 

SECTION 10.03. Communication by Holders with Other Holders. Holders may communicate pursuant to Trust Indenture Act Section 312(b) with other Holders with respect to their rights under this Indenture or the Securities. The Issuer, the Trustee, the Registrar and anyone else shall have the protection of Trust Indenture Act Section 312(c).

 

SECTION 10.04. Certificate and Opinion as to Conditions Precedent. Upon any request or application by the Issuer to the Trustee to take or refrain from taking any action under this Indenture, the Issuer shall furnish to the Trustee:

 

(1) an Officers’ Certificate of the Issuer stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with; and

 

(2) an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with.

 

SECTION 10.05. Statements Required in Certificate or Opinion. Each certificate or opinion with respect to compliance with a covenant or condition provided for in this Indenture shall include:

 

(1) a statement that the individual making such certificate or opinion has read such covenant or condition;

 

(2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

 

(3) a statement that, in the opinion of such individual, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and

 

(4) a statement as to whether or not, in the opinion of such individual, such covenant or condition has been complied with.

 

SECTION 10.06. When Securities Disregarded. In determining whether the Holders of the required principal amount of Securities have concurred in any direction, waiver or consent, Securities owned by the Issuer, or by any Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Issuer shall be disregarded and deemed not to be outstanding, except that, for the purpose of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Securities which a Responsible Officer of the Trustee actually knows are so owned shall be so disregarded. Subject to the foregoing, only Securities outstanding at the time shall be considered in any such determination.

 

SECTION 10.07. Rules by Trustee, Paying Agent and Registrar. The Trustee may make reasonable rules for action by or a meeting of Holders. The Registrar and the Paying Agent may make reasonable rules for their functions.

 

SECTION 10.08. Legal Holidays. A “Legal Holiday” is a Saturday, Sunday or other day on which banking institutions in New York state or other place of payment are authorized or required by law to close. If a payment date is a Legal Holiday, payment shall be made on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period. If a regular record date is a Legal Holiday, the record date shall not be affected.

 

SECTION 10.09. Governing Law. THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

SECTION 10.10. No Recourse Against Others. A director, officer, employee or shareholder, as such, of the Issuer shall not have any liability for any obligations of the Issuer under the Securities or this Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. By accepting a Security, each Holder shall waive and release all such liability. The waiver and release shall be part of the consideration for the issuance of the Securities.

 

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SECTION 10.11. Successors. All agreements of the Issuer in this Indenture and the Securities shall bind its successors. All agreements of the Trustee in this Indenture shall bind its successors.

 

SECTION 10.12. Multiple Originals. The parties may sign any number of copies of this Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. One signed copy of the Indenture is enough to prove this Indenture. The exchange of copies of this Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Indenture as to the parties hereto and may be used in lieu of the original Indenture and signature pages for all purposes.

 

SECTION 10.13. Table of Contents; Headings. The table of contents, cross-reference sheet and headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not intended to be considered a part hereof and shall not modify or restrict any of the terms or provisions hereof.

 

SECTION 10.14. Severability. If any provision or portion thereof in this Indenture or any Series of Securities is deemed unenforceable, it shall not affect the validity or enforceability of any other provision or portion thereof set forth herein, or of the Indenture as a whole.

 

SECTION 10.15. Waiver of Jury Trial. EACH OF THE ISSUER AND THE TRUSTEE HEREBY IRREVOCABLE WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUR OF OR RELATING TO THIS INDENTURE, THE SECURITIES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

SECTION 10.16. Force Majeure.  The Trustee shall not incur any liability for not performing any act or fulfilling any duty, obligation or responsibility hereunder by reason of any occurrence beyond the control of the Trustee (including but not limited to any act or provision of any present or future law or regulation or governmental authority, any act of God or war, civil unrest, local or national disturbance or disaster, any act of terrorism, or the unavailability of the Federal Reserve Bank wire or facsimile or other wire or communication facility).

 

SECTION 10.17. U.S.A. Patriot Act.  In order to comply with the laws, rules, regulations and executive orders in effect from time to time applicable to banking institutions, including, without limitation, those relating to the funding of terrorist activities and money laundering, including Section 326 of the USA PATRIOT Act of the United States (“Applicable Law”), the Trustee is required to obtain, verify, record and update certain information relating to individuals and entities which maintain a business relationship with the Trustee. Accordingly, each of the parties agree to provide to the Trustee, upon its request from time to time such identifying information and documentation as may be available for such party in order to enable the Trustee to comply with Applicable Law.

 

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IN WITNESS WHEREOF, the parties have caused this Indenture to be duly executed as of the date first written above.

 

	
 
    	
THE   PRICELINE GROUP INC.,
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel J. Finnegan
    
	
 
    	
 
    	
Name:   Daniel J. Finnegan
    
	
 
    	
 
    	
Title:   Chief Financial Officer and Chief Accounting Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DEUTSCHE   BANK TRUST COMPANY AMERICAS
    
	
 
    	
 
    
	
 
    	
By:
    	
DEUTSCHE   BANK NATIONAL TRUST COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
as   Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Carol Ng
    
	
 
    	
 
    	
Name:   Carol Ng
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Randy Kahn
    
	
 
    	
 
    	
Name:   Randy Kahn
    
	
 
    	
 
    	
Title:   Vice President
    

 

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