Document:

Exhibit 4.2

 

FORM OF FIFTH SUPPLEMENTAL INDENTURE

 

FIFTH SUPPLEMENTAL INDENTURE, dated as of March 24, 2015, between LIBERTY PROPERTY LIMITED PARTNERSHIP, a Pennsylvania limited partnership (the “Company”), having its principal offices at 500 Chesterfield Parkway, Malvern, Pennsylvania 19355, and U.S. BANK NATIONAL ASSOCIATION, a national banking association organized under the laws of the United States of America, as trustee (the “Trustee”), having its Corporate Trust Office at Two Liberty Place, 50 S. 16th Street, Suite 2000, Mail Station: Ex-PA-WBSP, Philadelphia, PA 19102.

 

RECITALS

 

WHEREAS, the Company executed and delivered its Base Indenture (the “Base Indenture”), dated as of September 22, 2010, to the Trustee to issue from time to time for its lawful purposes debt securities evidencing its unsecured indebtedness.

 

WHEREAS, the Base Indenture provides that by means of a supplemental indenture, the Company may create one or more series of its debt securities and establish the form and terms and conditions thereof.

 

WHEREAS, the Company intends by this Fifth Supplemental Indenture to (i) create a series of debt securities to be issued from time to time in an unlimited principal amount entitled “Liberty Property Limited Partnership 3.750% Senior Notes due 2025” (the “Notes”); and (ii) establish the form and the terms and conditions of such Notes.

 

WHEREAS, the Board of Trustees of Liberty Property Trust (the “Trust”), the general partner of the Company, has approved the creation of the Notes and the form, terms and conditions thereof.

 

WHEREAS, the consent of Holders to the execution and delivery of this Fifth Supplemental Indenture is not required, and all other actions required to be taken under the Base Indenture with respect to this Fifth Supplemental Indenture have been taken.

 

NOW, THEREFORE IT IS AGREED:

 

ARTICLE ONE
 Definitions, Creation, Form and Terms and Conditions of the Debt Securities

 

SECTION 1.01 Definitions. (a) Capitalized terms used in this Fifth Supplemental Indenture and not otherwise defined shall have the meanings ascribed to them in the Base Indenture. In addition, the following additional terms shall have the following meanings to be equally applicable to both the singular and the plural forms of the terms defined:

 

“Closing Date” means March 24, 2015.

 

“Global Note” means a single fully-registered global note in book entry form, without coupons, substantially in the form of Exhibit A attached hereto.

 

“Indenture” means the Base Indenture as supplemented by this Fifth Supplemental Indenture.

 

“Intercompany Debt” means Debt to which the only parties are the Trust, any of its subsidiaries, the Company and any Subsidiary, or Debt owed to the Trust arising from routine cash management practices, but only so long as such Debt is held solely by any of the Trust, any of its subsidiaries, the Company and any Subsidiary.

 

“Par Call Date” means January 1, 2025.

 

“Subsidiary” shall have the meaning provided in the Base Indenture and shall include Liberty Property Development Corp. and Liberty Property Development Corp.-II.

 

 

(b) The following terms, which are defined in the Base Indenture, are amended and restated in their entirety as follows:

 

“Redemption Price” has the meaning specified in Section 1.04(a) hereof.

 

“Reinvestment Rate” means the yield on Treasury securities at a constant maturity corresponding to the remaining life (as of the date of redemption, and rounded to the nearest month) to the Par Call Date (the “Treasury Yield”), plus 0.30%. For purposes hereof, the Treasury Yield shall be equal to the arithmetic mean of the yields published in the Statistical Release under the heading “Week Ending” for “U.S. Government Securities — Treasury Constant Maturities” with a maturity equal to such remaining life; provided, that if no published maturity exactly corresponds to such remaining life (assuming the notes matured on the Par Call Date), then the Treasury Yield shall be interpolated or extrapolated on a straight-line basis from the arithmetic means of the yields for the next shortest and next longest published maturities. For purposes of calculating the Reinvestment Rate, the most recent Statistical Release published prior to the date of determination of the redemption amount shall be used. If the format or content of the Statistical Release changes in a manner that precludes determination of the Treasury Yield in the above manner, then the Treasury Yield shall be determined in the manner that most closely approximates the above manner, as reasonably determined by the Company.

 

(c) With respect to the securities of all series created on or after the date of this Fifth Supplemental Indenture, the term “Unencumbered Total Asset Value”, which is defined in the Base Indenture, shall have the following meaning:

 

“Unencumbered Total Asset Value” as of any date means the sum of: (i) the value of those Undepreciated Real Estate Assets not subject to an encumbrance; and (ii) the value of all other assets of the Company and its Subsidiaries on a consolidated basis not subject to an encumbrance, as determined in accordance with GAAP (but excluding accounts receivable and intangibles); provided, however, that all investments by the Company and its Subsidiaries in unconsolidated joint ventures, unconsolidated limited partnerships, unconsolidated limited liability companies and other unconsolidated entities shall be excluded from Unencumbered Total Asset Value to the extent that such investments would have otherwise been included.

 

(d) The term “Make-Whole Amount”, which is defined in the Base Indenture, shall not apply to the Notes.

 

SECTION 1.02 Creation of the Debt Securities. In accordance with Section 301 of the Base Indenture, the Company hereby creates the Notes as a separate series of its debt securities issued pursuant to the Indenture. The Notes shall be issued in an aggregate principal amount initially limited to $400,000,000.

 

The Company may issue, in addition to the Notes originally issued on the Closing Date, additional Notes. The Notes originally issued on the Closing Date and any additional Notes originally issued subsequent to the Closing Date shall be a single series for all purposes under the Indenture.

 

SECTION 1.03 Form of the Debt Securities. The Notes will be represented by one or more fully-registered global notes in book-entry form, without coupons, registered in the name of the nominee of DTC. The Notes shall be in the form of Exhibit A attached hereto and the terms set forth in such form shall be incorporated herein. So long as DTC, or its nominee, is the registered owner of a Global Note, DTC or its nominee, as the case may be, will be considered the sole owner or holder of the Notes represented by such Global Note for all purposes under the Indenture. Ownership of beneficial interests in the Global Note will be shown on, and transfers thereof will be effected only through, records maintained by DTC (with respect to beneficial interests of participants) or by participants or persons that hold interests through participants (with respect to beneficial interests of beneficial owners).

 

SECTION 1.04 Terms and Conditions of the Debt Securities. The Notes shall be governed by all the terms and conditions of the Base Indenture, as supplemented by this Fifth Supplemental Indenture, and in particular, the following provisions shall be the terms of the Notes:

 

 

(a) Optional Redemption. At any time prior to the Par Call Date, the Company may redeem the Notes at its option, in whole or from time to time in part, at a redemption price (the “Redemption Price”) equal to the greater of (i) the principal amount of the Notes being redeemed, and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed that would be due if such notes matured on the Par Call Date but for the redemption thereof (not including any portion of such payments of interest accrued as of the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Reinvestment Rate plus 30 basis points, plus, in each case, accrued and unpaid interest thereon to, but excluding, the Redemption Date; provided, however, that if the Redemption Date falls after a Regular Record Date and on or prior to the corresponding Interest Payment Date, the Company will pay the full amount of accrued and unpaid interest and premium, if any, due on such Interest Payment Date to the Holder of record at the close of business on the corresponding Regular Record Date.  Notwithstanding the foregoing, if the Notes are redeemed on or after the Par Call Date, the Redemption Price will be equal to 100% of the principal amount of the Notes being redeemed plus accrued and unpaid interest thereon to, but excluding, the applicable Redemption Date.

 

If notice of redemption has been given as provided in the Indenture and funds for the redemption of the Notes called for redemption shall have been made available on the Redemption Date referred to in such notice, such Notes will cease to bear interest on the date fixed for such redemption specified in such notice and the only right of the Holders of such Notes from and after the Redemption Date will be to receive payment of the Redemption Price upon surrender of such Notes in accordance with such notice.

 

Notice of any optional redemption of any Notes will be given to Holders at their addresses, as shown in the Security Register for the Notes, not more than 60 nor less than 15 days prior to the date fixed for redemption. The notice of redemption will specify, among other items, the Redemption Date, the Redemption Price and the principal amount of the Notes held by such Holder to be redeemed.

 

If all or less than all of the Notes are to be redeemed at the option of the Company, the Company will notify the Trustee at least 45 days prior to giving notice of redemption (or such shorter period as is satisfactory to the Trustee) of the aggregate principal amount of Notes to be redeemed and their Redemption Date. In connection with any redemption prior to the Par Call Date, the Company shall give the Trustee notice of the related Redemption Price promptly after the calculation thereof and if the Company has requested that the Trustee give to the Holders the notice of redemption required by Section 1104 of the Base Indenture, such notice from the Company shall be given to the Trustee at such time as shall permit the Trustee to include notice of the Redemption Price in such notice of redemption. The Trustee shall have no responsibility for calculating the Redemption Price. The Trustee shall select, in such manner as it shall deem fair and appropriate, no less than 60 days prior to the date of redemption, the Notes to be redeemed in part.

 

Neither the Company nor the Trustee shall be required to: (i) issue, register the transfer of or exchange Notes during a period beginning at the opening of business 15 days before any selection of Notes to be redeemed and ending at the close of business on the day of mailing the relevant notice of redemption; or (ii) register the transfer of or exchange any Note, or portion thereof, called for redemption, except the unredeemed portion of any Note being redeemed in part.

 

(b) Maturity; Payment of Principal and Interest. The principal amount of the Notes shall be payable on April 1, 2025, subject to the provisions of the Indenture and the Notes. Interest will accrue from March 24, 2015. The Notes will bear interest at 3.750% per annum, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2015. Principal and interest payments on interests represented by a Global Note will be made to DTC or its nominee, as the case may be, as the registered owner of such Global Note. All payments of principal and interest in respect of the Global Note will be made by the Company in immediately available funds. The principal of the Notes payable on the Maturity Date or upon redemption will be paid against presentation and surrender of the Notes at the corporate trust office of the Trustee at 60 Livingston Avenue, 1st Floor, Bond Drop Window, St. Paul, MN, 55107, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public or private debt.

 

(c) Applicability of Defeasance or Covenant Defeasance. The provisions of Article 14 of the Base Indenture shall apply to the Notes.

 

 

ARTICLE TWO
 Additional Covenants

 

The Notes shall be governed by all the covenants contained in the Base Indenture, as supplemented by this Fifth Supplemental Indenture. In addition, this Fifth Supplemental Indenture amends and restates Section 1004 of the Base Indenture to read as follows:

 

“SECTION 1004. Limitations on Incurrence of Debt.

 

(a) The Company will not, and will not permit any Subsidiary to, incur any Debt, other than Intercompany Debt, that is subordinate in right of payment to the Notes, if, immediately after giving effect to the incurrence of such Debt and the application of the proceeds thereof, the aggregate principal amount of all outstanding Debt of the Company and its Subsidiaries on a consolidated basis determined in accordance with GAAP is greater than 60% of the sum of: (i) the Company’s Adjusted Total Assets as of the end of the most recent fiscal quarter prior to the incurrence of such additional Debt; and (ii) the increase in Adjusted Total Assets since the end of such quarter (including any increase resulting from the incurrence of additional Debt).

 

(b) The Company will not, and will not permit any Subsidiary to, incur any Debt if the ratio of Consolidated Income Available for Debt Service to the Annual Service Charge on the date on which such additional Debt is to be incurred, on a pro forma basis, after giving effect to the incurrence of such Debt and to the application of the proceeds thereof would have been less than 1.5 to 1.

 

(c) The Company will not, and will not permit any Subsidiary to, incur any Debt secured by any mortgage, lien, charge, pledge, encumbrance or security interest of any kind upon any of the properties of the Company or any Subsidiary (“Secured Debt”), whether owned at the date hereof or hereafter acquired, if, immediately after giving effect to the incurrence of such Secured Debt and the application of the proceeds thereof, the aggregate principal amount of all outstanding Secured Debt of the Company and its Subsidiaries on a consolidated basis is greater than 40% of the sum of: (i) the Company’s Adjusted Total Assets as of the end of the most recent fiscal quarter prior to the incurrence of such additional Debt; and (ii) the increase in Adjusted Total Assets since the end of such quarter (including any increase resulting from the incurrence of additional Debt).

 

(d) The Company will at all time maintain an Unencumbered Total Asset Value in an amount not less than 150% of the aggregate principal amount of all outstanding unsecured Debt of the Company and its Subsidiaries on a consolidated basis.

 

For purposes of the foregoing provisions regarding the limitation on the incurrence of Debt, Debt shall be deemed to be “incurred” by the Company or a Subsidiary whenever the Company or such Subsidiary shall create, assume, guarantee or otherwise become liable in respect thereof.

 

ARTICLE THREE
 Trustee

 

SECTION 3.01 Trustee. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Fifth Supplemental Indenture or the due execution thereof by the Company. The recitals of fact contained herein shall be taken as the statements solely of the Company, and the Trustee assumes no responsibility for the correctness thereof.

 

ARTICLE FOUR
 Miscellaneous Provisions

 

SECTION 4.01 Ratification of Original Indenture. This Fifth Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Base Indenture, and as supplemented and modified hereby, the Base Indenture is in all respects ratified and confirmed, and the Base Indenture and this Fifth Supplemental Indenture shall be read, taken and construed as one and the same instrument.

 

 

SECTION 4.02 Effect of Headings. The Article and Section headings herein are for convenience only and shall not affect the construction hereof.

 

SECTION 4.03 Successors and Assigns. All covenants and agreements in this Fifth Supplemental Indenture by the Company shall bind its successors and assigns, whether so expressed or not.

 

SECTION 4.04 Separability Clause. In case any one or more of the provisions contained in this Fifth Supplemental Indenture shall for any reason be held to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

SECTION 4.05 Governing Law. This Fifth Supplemental Indenture shall be governed by and construed in accordance with the laws of the State of New York. This Fifth Supplemental Indenture is subject to the provisions of the Trust Indenture Act, that are required to be part of this Fifth Supplemental Indenture and shall, to the extent applicable, be governed by such provisions.

 

SECTION 4.06 Counterparts. This Fifth Supplemental Indenture may be executed in any number of counterparts, and each of such counterparts shall for all purposes be deemed to be an original, but all such counterparts shall together constitute one and the same instrument.

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Fifth Supplemental Indenture to be duly executed, and their respective corporate seals to be hereunto affixed and attested, all as of the date first above written.

 

	
 
    	
LIBERTY   PROPERTY LIMITED PARTNERSHIP
    
	
 
    	
 
    
	
 
    	
By:   
    	
Liberty   Property Trust,
    
	
 
    	
 
    	
as   its sole General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

	
Attest:
    	
 
    
	
 
    	
 
    
	
Name:
    	
 
    
	
Title:
    	
 
    

 

[Signature Page to Fifth Supplemental Indenture]

 

 

	
 
    	
U.S.   BANK NATIONAL ASSOCIATION, as Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

	
Attest:
    	
 
    
	
 
    	
 
    
	
Name:
    	
 
    
	
Title:
    	
 
    

 

[Signature Page to Fifth Supplemental Indenture]

 

 

Exhibit A

 

[FACE OF NOTE]

 

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

UNLESS AND UNTIL THIS CERTIFICATE IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS CERTIFICATE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY DTC TO A NOMINEE THEREOF OR BY A NOMINEE THEREOF TO DTC OR ANOTHER NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR OF DTC OR A NOMINEE OF SUCH SUCCESSOR.

 

	
REGISTERED
    	
 
    	
REGISTERED
    
	
 
    	
 
    	
 
    
	
NO.
    	
 
    	
PRINCIPAL AMOUNT
    
	
 
    	
 
    	
 
    
	
CUSIP NO. 53117C AR3
    	
 
    	
$400,000,000
    

 

LIBERTY PROPERTY LIMITED PARTNERSHIP

 

3.750% Senior Note due 2025

 

March 24, 2015

 

Liberty Property Limited Partnership, a Pennsylvania limited partnership (the “Issuer,” which term includes any successor under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co. or its registered assigns, the principal sum of Four Hundred Million Dollars ($400,000,000) on April 1, 2025 (the “Maturity Date”), and to pay interest thereon from March 24, 2015 (or from the most recent interest payment date to which interest has been paid or duly provided for), semi-annually in arrears on April 1 and October 1 of each year (each, an “Interest Payment Date”), commencing on October 1, 2015, and on the Maturity Date, at the rate of 3.750% per annum, until payment of said principal sum has been made or duly provided for.

 

The interest so payable and punctually paid or duly provided for on any Interest Payment Date and on the Maturity Date will be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on the “Record Date” for such payment, which will be the March 15 or September 15 (regardless of whether such day is a Business Day (as defined below)) preceding such Interest Payment Date or the Maturity Date, as the case may be. Any interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such record date, and shall be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on a subsequent record date for the payment of such defaulted interest (which shall be not more than 15 days and not less than 10 days prior to the date of the payment of such defaulted interest) established by notice given by mail by or on behalf of the Issuer to the Holders of the Securities of this series not less than 10 days preceding such subsequent record date. Interest on this Note will be computed on the basis of a 360-day year of twelve 30-day months.

 

The principal of this Note payable on the Maturity Date or upon redemption will be paid against presentation and surrender of this Note at the corporate trust office of the Trustee at 60 Livingston Avenue, 1st Floor,

 

 

Bond Drop Window, St. Paul, MN, 55107, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public or private debt.

 

Interest payable on this Note on any Interest Payment Date and on the Maturity Date, as the case may be, will be the amount of interest accrued from and including the immediately preceding Interest Payment Date (or from and including March 24, 2015, in the case of the initial Interest Payment Date) to but excluding the applicable Interest Payment Date or the Maturity Date, as the case may be. If any Interest Payment Date, Redemption Date or the Maturity Date falls on a day that is not a Business Day (as defined below), the required payment of interest or principal or both, as the case may be, will be made on the next Business Day with the same force and effect as if it were made on the date such payment was due and no interest will accrue on the amount so payable for the period from and after such Interest Payment Date, Redemption Date or the Maturity Date, as the case may be.  “Business Day” means any day, other than a Saturday or a Sunday, that is neither a legal holiday nor a day on which banking institutions in Chicago or the City of New York are authorized or required by law, regulation or executive order to close.

 

Payments of principal and interest in respect of this Note will be made by wire transfer of immediately available funds in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private debts.

 

Reference is made to the further provisions of this Note set forth on the reverse hereof.  Such further provisions shall for all purposes have the same effect as though fully set forth at this place.

 

This Note shall not be entitled to the benefits of the Indenture referred to on the reverse hereof or be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Trustee under such Indenture.

 

 

IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed manually or by facsimile by its authorized officers as of the date first set forth above.

 

 

	
 
    	
LIBERTY PROPERTY LIMITED PARTNERSHIP,
    
	
 
    	
as Issuer
    
	
 
    	
 
    
	
 
    	
By:
    	
LIBERTY PROPERTY TRUST,
    
	
 
    	
 
    	
as its sole General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

Signature Page to Note

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

 

	
 
    	
U.S. BANK NATIONAL ASSOCIATION, as   Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized Signatory
    

 

 

[REVERSE OF NOTE]

 

LIBERTY PROPERTY LIMITED PARTNERSHIP

 

3.750% Senior Note due 2025

 

This Security is one of a duly authorized issue of debentures, notes, bonds, or other evidences of indebtedness of the Issuer (hereinafter called the “Securities”) of the series hereinafter specified, all issued or to be issued under and pursuant to an Indenture dated as of September 22, 2010 (herein called the “Indenture”), duly executed and delivered by the Issuer to U.S. Bank National Association, as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture with respect to the series of Securities of which this Note is a part), to which Indenture and all indentures supplemental thereto relating to this security reference is hereby made for a description of the rights, limitations of rights, obligations, duties, and immunities thereunder of the Trustee, the Issuer, and the Holders of the Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered.  The Securities may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature at different times, may bear interest (if any) at different rates, may be subject to different redemption provisions (if any), and may otherwise vary as provided in the Indenture or any indenture supplemental thereto.  This Security is one of a series designated as the 3.750% Notes due 2025 of the Issuer.

 

In case an Event of Default with respect to this Security shall have occurred and be continuing, the principal hereof and Make Whole Amount, if any, may be declared, and upon such declaration shall become, due and payable, in the manner, with the effect, and subject to the conditions provided in the Indenture.

 

The Issuer may redeem this Security at any time at the option of the Issuer, in whole or from time to time in part, at a redemption price (the “Redemption Price”) equal to the greater of (i) the principal amount of this Security being redeemed, and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on this Security to be redeemed that would be due if such Security matured on the Par Call Date (as defined below) but for the redemption thereof (not including any portion of such payments of interest accrued as of the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Reinvestment Rate plus 30 basis points, plus, in each case, accrued and unpaid interest thereon to, but excluding, the Redemption Date; provided, however, that if the Redemption Date falls after a Regular Record Date and on or prior to the corresponding Interest Payment Date, the Issuer will pay the full amount of accrued and unpaid interest and premium, if any, due on such Interest Payment Date to the Holder of record at the close of business on the corresponding Regular Record Date.  Notwithstanding the foregoing, if this Security is redeemed on and after January 1, 2025 (the “Par Call Date”), the Redemption Price will be equal to 100% of the principal amount of the Security being redeemed plus accrued and unpaid interest thereon to, but excluding, the applicable Redemption Date. Notice of any optional redemption of any Securities of this series will be given to Holders thereof at their addresses, as shown in the Security Register for the Securities of this series, not more than 60 nor less than 15 days prior to the date fixed for redemption.  The notice of redemption will specify, among other items, the Redemption Date, the Redemption Price and the principal amount of the Securities of this series held by such Holder to be redeemed.

 

The Indenture contains provisions permitting the Issuer and the Trustee, with the consent of the Holders of not less than a majority of the aggregate principal amount of all Outstanding Securities affected, evidenced as provided in the Indenture, to execute supplemental indentures adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of any supplemental indenture or modifying in any manner the rights of the Holders of the Securities of each series; provided, however, that no such supplemental indenture shall, without the consent of the Holder of each Security so affected, (i) change the Stated Maturity of the principal of (or premium, if any, on) or any installment of interest on, any such Security, (ii) reduce the principal amount of, or the rate or amount of interest on, or any premium payable on redemption of the Notes, or adversely affect any right of repayment of the Holder of any Securities; (iii) change the place of payment, or the coin or currency, for payment of principal or premium, if any, or interest on the Securities; (iv) impair the right to institute suit for the enforcement of any payment on or with respect to the Securities on or after the stated maturity of any such Security; (v) reduce the above-stated percentage in principal amount of outstanding Securities, the consent of whose Holders is necessary to modify or amend the Indenture, for any waiver with respect to the Securities or to

 

 

waive compliance with certain provisions of the Indenture or certain defaults and consequences thereunder or to reduce the quorum or voting requirements set forth in the Indenture; or (vi) modify any of the foregoing provisions or any of the provisions relating to the waiver of certain past defaults or certain covenants, except to increase the required percentage to effect such action or to provide that certain other provisions of the Indenture may not be modified or waived without the consent of the Holder of each Security. It is also provided in the Indenture that, with respect to certain defaults or Events of Default regarding the Securities of any series, the Holders of a majority in principal amount outstanding of the Securities of such series may on behalf of the Holders of all the Securities of such series waive any such past default or Event of Default and its consequences, or, subject to certain conditions, may rescind a declaration of acceleration and its consequences with respect to such Securities. Any such consent or waiver by the Holder of this Security (unless revoked as provided in the Indenture) shall be conclusive and binding upon such Holder and upon all future Holders and owners of this Security and any Securities that may be issued in exchange or substitution herefor, irrespective of whether or not any notation thereof is made upon this security or such other securities.

 

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

 

This Security is issuable only in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof.  Securities may be exchanged for a like aggregate principal amount of Securities of this series of other authorized denominations at the office or agency of the Issuer in The Borough of Manhattan, The City of New York, in the manner and subject to the limitations provided in the Indenture, but without the payment of any service charge except for any tax or other governmental charge imposed in connection therewith.

 

Upon due presentment for registration of transfer of Securities at the office or agency of the Issuer in The Borough of Manhattan, The City of New York, one or more new Securities of the same series of authorized denominations in an equal aggregate principal amount will be issued to the transferee in exchange therefor, subject to the limitations provided in the Indenture, without charge except for any tax or other governmental charge imposed in connection therewith.

 

Prior to due presentment of this Security for registration of transfer, the Issuer, the Trustee or any agent of the Issuer or the Trustee may deem and treat the Person in whose name this Security is registered as the owner of this Security (whether or not this security shall be overdue and notwithstanding any notation of ownership or other writing hereon), for the purpose of receiving payment of, or on account of, the principal hereof and subject to the provisions on the face hereof, interest hereon, and for all other purposes, and neither the Issuer nor the Trustee nor any authorized agent of the Issuer or the Trustee shall be affected by any notice to the contrary.

 

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

 

Capitalized terms used herein which are not otherwise defined shall have the respective meanings assigned to them in the Indenture and all indentures supplemental thereto relating to this Security.

 

 

LIBERTY PROPERTY LIMITED PARTNERSHIP

 

ISSUER

 

TO

 

U.S. BANK NATIONAL ASSOCIATION,
 TRUSTEE

 

 

FIFTH SUPPLEMENTAL INDENTURE
 DATED AS OF MARCH 24, 2015

 

 

3.750% SENIOR NOTES DUE 2025

 

 

SUPPLEMENT TO INDENTURE,
 DATED AS OF SEPTEMBER 22, 2010, BETWEEN
 LIBERTY PROPERTY LIMITED PARTNERSHIP AND
 U.S. BANK NATIONAL ASSOCIATIONEX-10.1

 EXHIBIT 10.1 

INTERIM EMPLOYMENT AGREEMENT 
 This
Interim Employment Agreement (“Agreement”) is made and entered into by and between G. Edward Evans (“Executive”) and Inteliquent, Inc. (“Employer”). This Agreement is entered to as of March 20, 2015 and is
effective as of the Effective Date defined below. 
 WHEREAS, Executive is employed as Employer’s Chief Executive Officer pursuant to
an Employment Agreement by and between Employer and Executive, dated April 1, 2011, as amended on March 26, 2013 and May 8, 2014 (“Employment Agreement”) (attached with amendments as Exhibit A); 

WHEREAS, on January 16, 2015, Employer announced that Executive would be departing as Chief Executive Officer in order to pursue other
interests; 
 WHEREAS, although the Employment Agreement expires on March 31, 2015, Employer and Executive desire that Executive will
continue to serve as Employer’s Chief Executive Officer beyond March 31, 2015, while Employer continues its search for Executive’s successor; 

WHEREAS, this Agreement shall only be effective upon, and shall not be effective prior to, April 1, 2015 (the “Effective Date”)
and, for the avoidance of doubt, the Employment Agreement shall remain in effect prior to the Effective Date in accordance with its terms; and 

NOW, THEREFORE, in consideration of the promises and payments set forth in this Agreement, the sufficiency of which is hereby acknowledged,
the parties agree as follows: 
 1. Executive will continue to serve as Chief Executive Officer of Employer between the Effective Date, and
the earlier of: (a) thirty (30) days after Executive delivers a notice of termination pursuant to Section 8 below; (b) up to thirty (30) days after Employer delivers a notice of termination pursuant to Section 8 below;
or (c) September 1, 2015 (the “Interim Employment Period”). In the event that Executive does not continue to remain employed with the Company through the Effective Date, this Agreement shall be null and void and Executive shall
have no further rights hereunder. 
 2. Other than as set forth in Section 3 and Section 6 (with respect to severance payments),
all of the terms and conditions of Executive’s employment as Chief Executive Officer of Employer under the Employment Agreement will apply during the Interim Employment Period. 

3. During the Interim Employment Period, Executive’s base salary will be paid by Employer at an annualized rate of $1,029,600. Executive
will not receive any annual bonus as set forth in Section 2.2 of the Employment Agreement. Employer will continue to reimburse Executive for reasonable costs incurred in connection with Executive’s travel between Oklahoma City and Chicago,
as set forth in Section 3(c) of the Employment Agreement, during the Interim Employment Period. In lieu of the housing benefits set forth in Section 3(d) of the Employment Agreement, Employer will reimburse Executive for reasonable costs
incurred by Executive in connection with lodging and meal expenses while Executive is in Chicago for business reasons during the Interim Employment Period. 

 4. Executive’s employment at Employer will end on the first calendar date immediately
following the end of the Interim Employment Period (the “Termination Date”). 
 5. On the Termination Date, Employer will pay
Executive’s unpaid base salary, any unused vacation pay accrued, and any unreimbursed business expenses submitted and incurred in accordance with Employer’s standard reimbursement policy through the Termination Date. If the Interim
Employment Period has ended because of Employer’s delivery of a termination notice pursuant to Section 1(b) above, Employer will, in addition to the payments set forth in this Section 5, pay Executive the equivalent of
Executive’s base salary at the annualized rate set forth in Section 3 above for the period of thirty (30) days, less the number of days of the advance notice provided by the Company in accordance with Section 1(b) above. 

6. In lieu of the acceleration of any equity award or any other payments payable to Executive upon termination of Executive’s employment,
whether under the Employment Agreement, any equity agreement or otherwise: 
 (a) Subject to Section 6(d) below,
Employer will pay Executive severance payments equal to twelve (12) months’ base salary following the Termination Date. These payments will be made at the annual salary rate of $514,800, and shall be payable in equal installments in
accordance with Employer’s payroll payment schedule in effect at the time of payment. 
 (b) Subject to
Section 6(d) below, unvested equity awards received by Executive pursuant to the award agreements set forth on Exhibit B that would have vested within eighteen (18) months of the Termination Date, had Executive remained employed by the
Company through such date, will become immediately vested on the day after the Termination Date. Notwithstanding the terms of any stock option award agreement between Executive and Employer, Executive will have 6 months from the Termination Date to
exercise any stock option awards that become vested pursuant to this Agreement, such exercise to otherwise be subject to the terms and conditions of the applicable plans and award agreements. 

(c) All payments and equity awards hereunder will be subject to applicable federal, state and local taxes and withholding and
less any other deductions authorized by Executive or by law. 
 (d) It is a condition precedent to Employer’s obligation
to accelerate the vesting of any equity awards or make any severance payments to Executive pursuant to this Section 6 that Executive executes a general release, in a form acceptable to Employer’s Board of Directors, in favor of Employer,
the members of Employer’s Board and its other affiliates releasing all claims arising out of Executive’s employment and the termination of Executive’s employment. Such release shall be executed and delivered (and no longer subject to
revocation, if applicable) within sixty (60) days following Executive’s termination. Any payment or benefit payable under this Section 6 that constitutes “nonqualified deferred compensation” for purposes of Code
Section 409A that would otherwise be made less than sixty (60) days after Executive’s termination shall instead be paid on the sixtieth (60th) day after Executive’s termination to the extent

 
required by Code Section 409A. Moreover, Employer will be under no obligation to accelerate the vesting of any equity awards or make any severance payments to Executive if Employer
terminates Executive for Cause (as defined in the Employment Agreement) in accordance with the terms of the Employment Agreement. 
 7.
Executive specifically acknowledges and reaffirms Executive’s ongoing obligations to Employer pursuant to Section 4 of the Employment Agreement, including the Proprietary Information and Invention Agreement executed by the Executive on
April 1, 2011, all of which obligations are incorporated herein and will remain in full force and effect during the Interim Employment Period. 

8. Either Executive or Employer may, at any time, send the other party written notice of termination of this Agreement. If Executive is
sending the written notice of termination, Executive must send it to the following two email addresses: rmonto@inteliquent.com and hynesjp@yahoo.com. If Employer is sending the written notice of termination, Employer must send the
notice to: gedwardevans@icloud.com. 
 9. This Agreement constitutes the entire agreement between the parties concerning
Executive’s employment during the Interim Employment Period. This Agreement may be modified only by a written instrument signed by both parties. This Agreement may be executed in one or more counterparts, each of which will be deemed an
original, but all of which constitute one and the same Agreement. Signatures exchanged by PDF will be treated as valid original signatures for all purposes 

10. This Agreement will be governed by the laws of the State of Illinois and all disputes arising under this Agreement must be submitted to a
court of competent jurisdiction in Chicago, Illinois. 
 11. Section 409A Compliance. 

(a) The intent of the parties is that payments and benefits under this Agreement comply with Code Section 409A and, accordingly, to the
maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith. In no event whatsoever shall the Company be liable for any additional tax, interest or penalty that may be imposed on Executive by Code Section 409A or
damages for failing to comply with Code Section 409A. 
 (b) A termination of employment shall not be deemed to have occurred for
purposes of any provision of this Agreement providing for the payment of any amount or benefit upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Code
Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.” Notwithstanding anything to the
contrary in this Agreement, if Executive is deemed on the date of termination to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B), then with regard to any payment or the provision of any
benefit that is considered “nonqualified deferred compensation” under Code Section 409A 

 
payable on account of a “separation from service,” such payment or benefit shall not be made or provided until the date which is the earlier of (a) the expiration of the six
(6)-month period measured from the date of such “separation from service” of Executive, and (b) the date of Executive’s death, to the extent required under Code Section 409A. Upon the expiration of the foregoing delay
period, all payments and benefits delayed pursuant to this Section 11(b) (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to Executive in a lump
sum, and all remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein. 

(c) To the extent that reimbursements or other in-kind benefits under this Agreement constitute “nonqualified deferred compensation”
for purposes of Code Section 409A, (a) all expenses or other reimbursements hereunder shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by Executive, (b) any
right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (c) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any
way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year. 
 (d) For purposes of
Code Section 409A, Executive’s right to receive installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies a payment
period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Company. 

(e) Notwithstanding any other provision of this Agreement to the contrary, in no event shall any payment or benefit under this Agreement that
constitutes “nonqualified deferred compensation” for purposes of Code Section 409A be subject to offset by any other amount unless otherwise permitted by Code Section 409A. 

WHEREFORE, the parties have executed this Agreement effective on the date first set forth above. 

 

									
	EXECUTIVE				INTELIQUENT, INC.
				
	 /s/ G. Edward Evans
				By:		 /s/ Kurt Abkemeier

	Name:		G. Edward Evans				Name:		Kurt Abkemeier
							Title:		Chief Financial Officer and Executive Vice President

 EXHIBIT A 

Employment Agreement 

NEUTRAL TANDEM, INC. 

EMPLOYMENT AGREEMENT 

This Employment Agreement (this “Agreement”) is entered into as of April 1, 2011, by and between G.
Edward Evans (the “Executive”), and Neutral Tandem, Inc., a Delaware corporation (the “Company”). 

WHEREAS, the Company desires to employ the Executive and the Executive is willing to accept such employment upon the terms and
conditions set forth herein. 
 NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties
agree as follows: 
  

	 	1.	Employment by the Company. 

 1.1 Effective Date. The effective date of
this Agreement shall be April 1, 2011 (the “Effective Date”) and this Agreement shall have an initial term of four (4) years unless terminated sooner pursuant to Section 5. At the expiration of the initial term
and each anniversary thereof, the term of this Agreement shall automatically renew for an additional period of one year unless either party provides written notice (a “Notice of Non-Renewal”) to the other of its or his intent
not to renew this Agreement at least thirty (30) days prior to the end of the initial term or any renewal term. 
 1.2 Position.
Subject to terms set forth herein, the Company agrees to employ Executive in the position of Chief Executive Officer and Executive hereby accepts such position. During the term of his employment with the Company, Executive will devote his best
efforts and all of his business time and attention (except for vacation periods as set forth herein, reasonable periods of illness or other incapacities permitted by the Company’s general employment policies) to the business of the Company.

 1.3 Duties. Executive shall perform such duties as are customarily associated with his then current title and as assigned to the
Executive by the Company’s Board of Directors (the “Board”). The Board has the right to assign and change the Executive’s duties at any time, provided, however, that certain assignments and changes in
Executive’s duties hereunder may trigger certain rights and remedies of Executive as set forth elsewhere herein. At the request of the Board and subject to the limitations of applicable law, the Executive shall serve as a member of the Board
and any subsidiary of the Company without compensation other than that provided in this Agreement. 
 1.4 Other Employment Policies.
The employment relationship between the parties shall also be governed by the general employment policies and practices of the Company, 

 
including those relating to protection of confidential information and assignment of inventions, except that when the terms of this Agreement differ from or are in conflict with the
Company’s general employment policies or practices, this Agreement shall control. 
  

	 	2.	Compensation. 

 2.1 Salary. Executive shall receive for all services
rendered under this Agreement an annualized base salary of $495,000, subject to federal and state withholding requirements, payable in accordance with the Company’s usual payroll practices. Such salary shall be adjusted no less than annually at
the discretion of the Compensation Committee of the Board, but in no event will the base salary be reduced. 
 2.2 Bonus. The
Executive will be eligible to receive an annual bonus in respect of each calendar year during the term of this Agreement in the form of a cash payment of forty (40%) of Executive’s base salary in the applicable calendar year (or such
greater percentage as the Board may determine). Any bonus will be based on the extent to which Executive achieves performance goals to be established by the Board from time to time in consultation with the Executive. The Company will pay
Executive’s bonus, if any, no later than March 15 in the calendar year following the calendar year to which the bonus relates. No bonus shall be deemed to have been earned by Executive for any calendar year in which the Executive is not
actively employed as of December 31 of the calendar year to which the bonus relates. 
 2.3 Benefits. Executive shall be
eligible to participate in all benefits plans and programs that the Company may offer to its employees generally from time to time, under the terms and conditions of such plans or programs. Executive shall be entitled to four weeks paid vacation, to
be earned and used in accordance with the Company’s policy or practice. 
  

	 	3.	Expense Reimbursements; Perquisites. 

 (a) During the term of this
Agreement, the Company will provide Executive with a laptop computer, which shall be returned promptly by the Executive to the Company upon termination of his employment. 

(b) The Company will reimburse Executive for reasonable and customary business expenses, including monthly cell phone/PDA charges, in
accordance with the Company’s standard reimbursement policies in effect from time to time. 
 (c) Upon presentation of
reasonable substantiation and documentation as the Company may specify from time to time, the Company shall reimburse Executive for one roundtrip, economy class commercial airline ticket per week for use by Executive to travel between Oklahoma City,
Oklahoma and Chicago, Illinois during the term of this Agreement. 
 (d) During the term of this Agreement, the Company shall
provide a suitable and reasonable apartment in Chicago, Illinois for Executive’s use while Executive is performing services for the Company at its offices in Chicago, Illinois. Executive will be responsible for furnishing the apartment. 

	 	4.	Employee Obligations. 

 4.1 Proprietary Information and Inventions
Agreement. Executive agrees to abide by the terms and conditions of the Proprietary Information and Inventions Agreement executed by the Executive on even date herewith. 

4.2 Non-Competition Obligations. 

(a) Executive and the Company acknowledge that (i) the Company has developed and will continue to develop goodwill, going concern
value, customer and client relationships and confidential information that are valuable property rights of the Company and that Executive will have access to and knowledge concerning such rights, which if used other than for the benefit of the
Company could significantly injure the Company; and (ii) the Company is engaged in the operation of telecommunication hubs and switching systems, transmission and switching of voice, data, audio, video and information via telephone, wireless
and cable networks, and IP peering (the “Business”). Accordingly, and in consideration of the mutual promises contained herein, Executive covenants that, during the period commencing on the Effective Date and terminating on
the first anniversary of the Executive’s termination of employment (the “Restrictive Period”), he shall not, without the prior written consent of the Company, directly or indirectly, in his individual capacity or on
behalf of any other individual, partnership, corporation, limited liability company or any other entity (collectively “Person”), Compete with the Company or any of its respective successors or assigns. 

(b) For purposes of this Agreement, “Compete” shall mean: (i) to engage in business activities identical
or substantially similar to the Business as engaged in by the Company, or any entity controlling, under common control or controlled by the Company (collectively, the “Neutral Tandem Group”), at any time during the one
(1)-year period preceding the date of termination of Executive’s employment (a “Competitive Business”) hereunder within the geographic limits of those standard metropolitan statistical areas in the United States within
which the Neutral Tandem Group has engaged in the Business during the one (1)-year period preceding the date of termination of Executive’s employment or within which the Company contemplates engaging in or has developed plans to engage in
(based on its then-current business plan, operating plan, or similar document) the Business during the one (1)-year period following the date of termination of Executive’s employment (the “Territory”); (ii) to
assist any Person (whether in a financial, managerial, employment, advisory or other capacity or as a stockholder or owner, or by the provision of information) to engage in a Competitive Business within the Territory; or (iii) to own any
interest in or to organize a corporation, partnership or other business or organization which engages in a Competing Business within the Territory. Notwithstanding the foregoing, Executive’s ownership of or investment in an otherwise Competing
Business shall not be a violation of Section 4.2 if (a) the stock of such business is publicly traded, (b) Executive’s equity interest in such business does not exceed five percent (5%) of the aggregate outstanding equity
interests of such business, and (c) Executive does not otherwise participate in the management or operational affairs of such business, including as an advisor or consultant or in any other capacity. 

(c) Executive acknowledges and agrees that the covenants contained in this Section 4.2 are reasonable in scope, geographic
application and duration, in view of the benefits to the Executive hereunder, and that the provisions of this Section 4.2 are both necessary and reasonable for the protection of the Company. 

	 	5.	Termination Of Employment. 

 5.1 General. Executive’s employment by
the Company may be terminated by the Company or the Executive at any time, with or without Cause (as defined below). Upon termination of Executive’s employment, the Company’s obligations to pay Executive’s compensation shall be
limited as provided in Sections 5.2 and 5.3 below. 
 5.2 Termination Without Cause, Etc. If Executive’s employment hereunder
is terminated: 
 (a) by the Company without Cause; 

(b) by the Executive for Good Reason (as defined below); 

(c) by the Executive for any reason after the Company’s delivery of a Notice of Non-Renewal; 

(d) within twelve (12) months following a Change of Control (as defined below), (A) by the Company without Cause or
(B) by Executive for Good Reason or for any reason after the Company’s delivery of a Notice of Non-Renewal; or 
 (e)
within twelve (12) months following a Change of Control (as defined below), by Executive without Good Reason; 
 then the Company will pay
Executive subject to his compliance with the agreements referred to or set forth in Section 4: 
 (i) any unpaid base salary
through the date of termination, and any accrued vacation pay and any accrued and vested benefits under the Company’s employee benefit plans in accordance with the terms thereof; and 

(ii) severance pay equal to twelve (12) months’ base salary at the salary rate in effect on the date of termination;
provided, however, that in the case of a termination pursuant to Section 5.2(d) only, such severance pay shall be equal to twenty-four (24) months’ base salary at the rate in effect on the date of termination; 

Subject to the provisions of Section 6.10(b), any severance payable pursuant to this Section 5.2 shall be paid in equal installments in accordance
with the Company’s payroll payment schedule in effect on the date Executive’s employment terminates, provided that any such payment that would (absent this proviso) be made less than sixty (60) days after the date Executive’s
employment terminates shall instead be paid on the sixtieth (60th) day after the date Executive’s employment terminates. It is a condition precedent to the Company’s obligation to make any severance payments to Executive pursuant to
this Section 5.2 that Executive executes a general release, in form and substance acceptable to the Board, in favor of the Company, the members of 

 
the Board and its other affiliates releasing all claims arising out of Executive’s employment and his termination of employment, and that such release shall be executed (and no longer
subject to revocation, if applicable) within sixty (60) days following the date Executive’s employment terminates. 
 5.3
Other Termination Events. In the event that Executive dies, becomes Disabled (as defined below), or Executive’s employment terminates or is terminated for any other reason other than as described in Section 5.2(a) through 5.2(e), the
Company will only be obligated to pay Executive (a) any unpaid base salary through the date of termination, (b) any unused vacation accrued through the date of termination and any accrued and vested benefits under the Company’s
employee benefit plans in accordance with the terms thereof, and (c) any unreimbursed business expenses. 
 5.4 Remedies for
Engaging in Transaction Activity. Notwithstanding anything contained in the Company’s Amended and Restated 2007 Equity Incentive Plan or any applicable Company equity award agreement to the contrary, in the event that Executive engages in
any Transaction Activity (as defined in Section 5.5(a) hereof) during the term of Executive’s employment or service with the Company, (a) all outstanding Company equity awards then held by Executive (whether vested or unvested) shall
be immediately forfeited and returned to the Company without additional consideration, (b) all shares of common stock of the Company acquired by Executive upon the vesting and/or exercise of any such Company equity awards within the three
(3) month period prior to the date of such Transaction Activity shall be immediately forfeited and returned to the Company without additional consideration, and (c) to the extent that Executive received any profit from the sale of any
shares of common stock of the Company underlying any such Company equity award within the three (3) month period prior to the date of such Transaction Activity, Executive shall promptly repay to the Company any profit received pursuant to such
sale. 
 5.5 Certain Definitions. For purposes of this Agreement: 

(a) The term “Cause” shall mean any of the following: (i) Executive’s willful misconduct in the
performance of his duties for the Company, or Executive’s willful failure to abide by or comply with any legal policy or directive of the Board, (ii) conviction of or plea of guilty or any other plea other than “not guilty” to a
felony, or any crime involving dishonesty or moral turpitude; (iii) the violation by Executive of any material provision of this Agreement which either is not cured within ten (10) days after written notice is given to Executive by the
Company or constitutes a habitual breach; or (iv) Executive’s dishonesty, misappropriation or fraud with regard to the business or affairs of the Company or its affiliates. For the avoidance of doubt, “Cause” includes any
activity by Executive designed to consummate any independently sponsored (whether through a private equity firm sponsor or otherwise), management buyout or other merger, consolidation or sale transaction involving the Company without the express
written consent of the Board (“Transaction Activity”). 
 (b) The term “Change of
Control” of the Company shall mean any transaction or series of related transactions whether by consolidation, merger, sale or issuance of equity securities, or sale or transfer of all or substantially all of the Company’s assets,
or otherwise, in which any one person, or more than one person acting as a group, (i) acquires ownership of 

 
stock of the Company that, together with stock held by such person or group, constitutes more than 50 percent of the total fair market value or total voting power of the stock of the Company or
(ii) acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than forty
(40) percent of the total gross fair market value of all of the assets of the Company immediately before such acquisition or acquisitions (excluding any asset transferred to (A) a shareholder of the Company (immediately before the asset
transfer) in exchange for or with respect to its stock, (B) an entity, fifty (50) percent or more of the total value or voting power of which is owned, directly or indirectly, by the Company, (C) a person, or more than one person
acting as a group, that owns, directly or indirectly, fifty (50) percent or more of the total value or voting power of all the outstanding stock of the Company, or (D) an entity, at least 50 percent of the total value or voting power of
which is owned, directly or indirectly, by a person described in clause (ii)(C) of this definition. This definition is intended to comply with the definitions of “change in ownership” of a corporation and “change in ownership of a
substantial portion of the assets” of a corporation set forth in the Treasury Regulations issued under section 409A(a)(2)(A)(v) of the Internal Revenue Code and shall be interpreted in a manner consistent with such intention. 

(c) The term “Disability” shall mean Executive is prevented, by illness, accident, disability or any other
physical or mental condition (to be determined by means of a written opinion of a competent medical doctor chosen by mutual agreement of the Company and Executive or Executive’s personal representative(s)) from substantially performing
Executive’s duties and responsibilities hereunder for one (1) or more periods totaling ninety (90) days in any twelve (12)-month period. 

(d) The term “Good Reason” shall mean without Executive’s written consent: (i) a material adverse
change in Executive’s title or the duties assigned to Executive or (ii) any material failure by the Company to comply with its obligations under this Agreement, but in each such case only if Executive has provided notice to the Company of
the existence of the condition described in clause (i) or (ii) of this definition within ninety (90) days following the initial existence of the condition, and the Company has not remedied such condition within thirty (30) days
after receiving such notice. 
  

	 	6.	General Provisions. 

 6.1 Notices. Any notices provided hereunder must be
in writing and shall be deemed effective upon the earlier of delivery, if by hand or by facsimile (with confirmed receipt), one (1) business day after deposit with a reputable overnight courier service, or three (3) business days after
mailing by first class mail, to the Company at its primary office location and to Executive at his address as listed on the Company payroll. 

6.2 Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any
other provision or any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provisions had never been contained herein. 

 6.3 Waiver. If either party should waive any breach of any provisions of this Agreement,
he or it shall not thereby be deemed to have waived any preceding or succeeding breach of the same or any other provision of this Agreement. 

6.4 Complete Agreement. This Agreement constitutes the entire agreement between Executive and the Company with respect to the subject
matter contained herein. This Agreement supersedes any and all prior oral discussions or written communications and agreements between Executive and the Company. This Agreement is entered into without reliance on any promise or representation other
than those expressly contained herein, and it cannot be modified or amended except in writing signed by an authorized officer of the Company and Executive. 

6.5 Counterparts. This Agreement may be executed in separate counterparts, any one of which need not contain signatures of more than
one party, but all of which taken together will constitute one and the same Agreement. 
 6.6 Headings. The headings of the sections
hereof are inserted for convenience only and shall not be deemed to constitute a part hereof nor to affect the meaning thereof. 
 6.7
Successors and Assigns. This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive and the Company, and their respective successors, assigns, heirs, executors and administrators, except that Executive may not
assign any of his duties hereunder and he may not assign any of his rights hereunder without the written consent of the Company, which shall not be withheld unreasonably. 

6.8 Attorney Fees. Each of the Company and Executive shall be responsible for their own respective costs and expenses (including,
without limitation, attorneys’ fees and costs) in connection with any action brought by any party to enforce its rights hereunder or any other legal action involving this Agreement or any party’s performance hereunder. 

6.9 Choice of Law. All questions concerning the construction, validity and interpretation of this Agreement will be governed by the
law of the internal, substantive laws of the State of Delaware, without reference to the conflict of laws provisions thereof. Executive expressly consents to the jurisdiction of the state and federal courts of Cook County, Illinois, for all actions
arising out of or relating to this Agreement. 
 6.10 Section 409A Compliance. 

(a) It is the intention of the parties that no payment or entitlement pursuant to this Agreement will give rise to any adverse tax
consequences to any person pursuant to Internal Revenue Code Section 409A. This Agreement shall be interpreted to that end, and no effect shall be given to any provision herein in a manner that reasonably could be expected to give rise to
adverse tax consequences under said 409A. Should either party determine that there is a reasonable possibility that the text of this Agreement could give rise to such adverse tax consequences, the parties agree to negotiate in good faith to amend
the Agreement to obviate the possibility of such consequences. 

 (b) If at any time, the Company or any successor obligated to make any payment hereunder
(the “Employer”) has a class of stock that is publicly traded on an established securities market or otherwise, then the Employer shall from time to time compile a list of “Specified Employees” as defined in and
pursuant to, section 1.409A-1(i) of the Treasury Regulations or any successor regulation. Notwithstanding any other provision of this Agreement, if the Executive is a Specified Employee on the date of termination of his employment within the meaning
of section 1.409A-1(h)(1)(ii) of the Treasury Regulations or any successor regulation (his “Termination of Employment”), no payment of compensation shall be made to the Executive under any provision of this Agreement
(including Section 5.2) during the period ending six (6) months from the date of his Termination of Employment unless the Employer determines that there is no reasonable basis for believing that making such payment would cause the
Executive to suffer any adverse tax consequences pursuant to Section 409A of the Internal Revenue Code. If any payment to the Executive is delayed pursuant to the provisions of this Section 6.10(b), such payment instead shall be made on
the first (1st) business day following the expiration of the six (6)-month period referred to herein, together with a compensatory amount in the nature of interest computed at the “Prime
Rate” as of the date of Termination of Employment (as reported in The Wall Street Journal) plus two percent (2%). For purposes of Section 409A of the Internal Revenue Code, Executive’s right to receive any installment payments
pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments. 
  

	 	7.	Former Employment. 

 7.1 No Conflict with Existing Obligations.
Executive represents that his performance of all the terms of this Agreement and as an employee of the Company does not and will not breach any agreement or obligation of any kind made prior to his employment by the Company, including agreements or
obligations he may have with prior employers or entities for which he has provided services. Executive has not entered into, and agrees he will not enter into, any agreement or obligation either written or oral in conflict herewith. 

[Signatures on Next Page] 

 IN WITNESS WHEREOF, the parties have executed this Employment Agreement on the day
and year first above written. 
  

			
	NEUTRAL TANDEM, INC.
		
	By:		 /s/ Robert M. Junkroski

	Name:		Robert M. Junkroski
	Title:		Chief Financial Officer

  

	
	Accepted and Agreed:
	
	 /s/ G. Edward Evans

	G. Edward Evans

 FIRST AMENDMENT TO 

EMPLOYMENT AGREEMENT 
 This First Amendment to
Employment Agreement (“First Amendment”) is made by and between Neutral Tandem, Inc. d/b/a Inteliquent (the “Company”) and G. Edward Evans (the “Executive”). This First Amendment is made as of
March 26, 2013. 
 BACKGROUND 

A. The Company and Executive entered into an Employment Agreement dated April 1, 2011 (collectively, the “Agreement”). 

B. The parties wish to amend the Agreement to reflect the following change. 

THE AGREEMENT 
 The parties agree
as follows: 
 1. Definitions. All capitalized terms not defined in this First Amendment have the same meanings given to those terms
in the Agreement. 
 2. Section 2.2. Section 2.2 of the Agreement is hereby deleted in its entirety and replaced with the
following: 
  

	 	2.2	Bonus. The Executive will be eligible to receive an annual bonus in respect of each calendar year during the term of this Agreement in the form of a cash payment of fifty (50%) of Executive’s base
salary in the applicable calendar year (or such greater percentage as the Board may determine). Any bonus will be based on the extent to which Executive achieves performance goals to be established by the Board from time to time in consultation with
the Executive. The Company will pay Executive’s bonus, if any, no later than March 15 in the calendar year following the calendar year to which the bonus relates. No bonus shall be deemed to have been earned by Executive for any calendar
year in which the Executive is not actively employed as of December 31 of the calendar year to which the bonus relates. 

3. Section References. Section titles used in this First Amendment have no substantive meaning and are not a part of the parties’
agreement. 
 4. Successors and Assigns. This First Amendment is binding upon and inures to the benefit of the successors and
permitted assigns of the parties. 
 5. Entire Agreement. Except as expressly modified by this First Amendment, the Agreement is and
will remain in full force and effect in accordance with its terms and constitutes the legal and binding obligations of the Company and Executive. This First Amendment, including the Agreement, is the complete agreement of the parties and supersedes
any prior agreements or representations, whether oral or written, with respect to the subject matter of this First Amendment 

 The Company and Executive have executed this First Amendment as of the date first set forth
above. 
  

									
	Neutral Tandem, Inc. d/b/a Inteliquent				G. Edward Evans
					
	By:		 /s/ Richard L. Monto
				By:		 /s/ G. Edward Evans

	Name:		Richard L. Monto						
	Title:		General Counsel and Secretary						

 SECOND AMENDMENT TO 

EMPLOYMENT AGREEMENT 
 This Second Amendment to
Employment Agreement (“Second Amendment”) is made by and between Inteliquent, Inc. (f/k/a Neutral Tandem, Inc. and referred to herein as the “Company”) and G. Edward Evans (the “Executive”). This
Second Amendment is made as of May 8, 2014. 
 BACKGROUND 

A. The Company and Executive entered into an Employment Agreement dated April 1, 2011 (as amended, the “Agreement”). 

B. The parties wish to amend the Agreement to reflect the following change. 

THE AGREEMENT 
 The parties agree
as follows: 
 1. Definitions. All capitalized terms not defined in this Second Amendment have the same meanings given to those terms
in the Agreement. 
 2. Section 2.2. Section 2.2 of the Agreement is hereby deleted in its entirety and replaced with the
following: 
  

	 	2.2	Bonus. The Executive will be eligible to receive an annual bonus in respect of each calendar year during the term of this Agreement in the form of a cash payment of 75% of Executive’s base salary in the
applicable calendar year (or such greater percentage as the Board may determine). Any bonus will be based on the extent to which Executive achieves performance goals to be established by the Board from time to time in consultation with the
Executive. The Company will pay Executive’s bonus, if any, no later than March 15 in the calendar year following the calendar year to which the bonus relates. No bonus shall be deemed to have been earned by Executive for any calendar year
in which the Executive is not actively employed as of December 31 of the calendar year to which the bonus relates. 

 3.
Section References. Section titles used in this Second Amendment have no substantive meaning and are not a part of the parties’ agreement. 

4. Successors and Assigns. This Second Amendment is binding upon and inures to the benefit of the successors and permitted assigns of
the parties. 
 5. Entire Agreement. Except as expressly modified by this Second Amendment, the Agreement is and will remain in full
force and effect in accordance with its terms and constitutes the legal and binding obligations of the Company and Executive. This Second Amendment, including the Agreement, is the complete agreement of the parties and supersedes any prior
agreements or representations, whether oral or written, with respect to the subject matter of this Second Amendment 

 The Company and Executive have executed this Second Amendment as of the date first set forth
above. 
  

									
	Inteliquent, Inc.				G. Edward Evans
					
	By:		 /s/ Richard L. Monto
				By:		 /s/ G. Edward Evans

	Name:		Richard L. Monto						
	Title:		General Counsel and Secretary						

 EXHIBIT B 

List of Outstanding Equity Award Agreements 

1. Non-Qualified Stock Option Award Agreement by and between G. Edward Evans and Neutral Tandem, Inc. (d/b/a Inteliquent, Inc.), dated as of April 1,
2011 
 2. Restricted Stock Grant Agreement by and between G. Edward Evans and Neutral Tandem, Inc. (d/b/a Inteliquent, Inc.), dated as of April 1,
2011 
 3. Non-Qualified Stock Option Award Agreement by and between G. Edward Evans and Neutral Tandem, Inc. (d/b/a Inteliquent, Inc.), dated as of
March 15, 2013 
 4. Restricted Stock Grant Agreement by and between G. Edward Evans and Neutral Tandem, Inc. (d/b/a Inteliquent, Inc.), dated as of
March 15, 2013.

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