Document:

Exhibit 10.3

                             ASSET SALE AGREEMENT

                                   between

                         On The Go Healthcare, Inc.

                                     and

                            Vital Products, Inc.

                          Dated as of July 5, 2005

     THIS ASSET SALE AGREEMENT is made as of this 5 day of July, 2005
(the "Effective Date") by and between

         (1) On The Go Healthcare, Inc., a corporation organized under the
             laws of Delaware, whose registered office is at 85 Corstate
             Avenue, Unit #1, Concord, Ontario, Canada L4K 4Y2 ("OGHC"),

         and

         (2) Vital Products, Inc., a corporation organized under the laws
             of the state of Delaware with its principal offices at
             35 Adesso Drive, Concord, Ontario L4k 4Y2 Canada
             ("Vital Products").

BACKGROUND

         A.  WHEREAS, OGHC has rights in certain Intellectual Property,
             Equipment and Agreements relating to its Childcare Division
             (each as hereinafter defined); and

         B.  WHEREAS, Vital Products desires to purchase and OGHC desires
             to sell to Vital Products all of OGHC's right, title and
             interest in certain Intellectual Property, Equipment and
             Agreements relating to its Childcare Division, on the terms
             and conditions stated in this Agreement.

              NOW, THEREFORE, in consideration of the promises and the mutual
         covenants, agreements and representations herein contained and
         intending to be legally bound, OGHC and Vital Products agree as
         follows:

SECTION 1

DEFINITIONS AND INTERPRETATION

         1.1     Definitions.  Where used in this Agreement, in addition to
                 capitalized terms defined on first use herein, the following
                 words or phrases shall have the meanings set forth below:

                                      1
<PAGE>

         1.1.1   "Affiliate" in relation to any Person means any Person that
                 controls, is controlled by or is under common control with
                 that Person. For the purposes of this definition, the term
                 "control" means (i) beneficial and/or legal ownership of at
                 least fifty percent (50%) or more of the outstanding voting
                 securities of a company or other business organization with
                 voting securities (or such percentage as required under any
                 particular jurisdiction to confer controlling powers through
                 ownership of voting securities broadly equivalent to the
                 controlling powers attendant on ownership of at least fifty
                 percent (50%) or more of outstanding voting securities in a
                 United States corporation), (ii) a fifty percent (50%) or
                 greater interest in the net assets or profits of a partnership
                 or other business organization without voting securities,
                 or (iii) the ability, whether directly or indirectly, to
                 direct the affairs, management or policies of any such Person.

         1.1.2   "Agreement" means this Asset Sale Agreement, together with the
                 Exhibits attached hereto, each of which is hereby incorporated
                 by reference herein, and any instrument amending this
                 Agreement.

         1.1.3   "Books and Records" means all material communications between
                 OGHC or any of its Affiliates and governmental patent offices,
                 the internal patent file and the invention disclosure
                 documents of OGHC or any of its Affiliates, as kept by OGHC's
                 or any such Affiliate's corporate intellectual property
                 department.

         1.1.4   "Childcare Division" means the division of OGHC which
                 manufactures, markets and distributes Childcare Products.

         1.1.5   "Governmental Body" means any: (a) nation, principality,
                 state, commonwealth, province, territory, county,
                 municipality, district or other similar jurisdiction;
                 (b) federal, state, local, municipal, foreign or other
                 government; (c) governmental authority (including any
                 governmental division, subdivision, department, agency,
                 bureau, branch, office, commission, council, board,
                 instrumentality, officer, official, representative,
                 organization, unit, body or other entity); (d) multi-national
                 organization or body established under the auspices of an
                 internationally recognized organization (such as WIPO, the
                 WHO, The United Nations etc.); (e) individual, entity or
                 body or (f) court or tribunal, in each case which has
                 competent jurisdiction and which is legally entitled to
                 exercise any executive, legislative, judicial,
                 administrative, regulatory or taxing authority or power
                 of any nature.

         1.1.6   "Party" or "Parties" means OGHC or Vital Products or, as
                 the context requires or admits, both OGHC and Vital Products.

         1.1.7   "Person" means an individual, a partnership, a joint venture,
                 a corporation, a trust, an estate, an unincorporated
                 organization, or any other entity or any department or agency
                 thereof.

         1.1.8   "Third Party(ies)" means any Person other than a Party to this
                 Agreement or an Affiliate of any Party to this Agreement.

         1.2     Interpretation.

                                      2
<PAGE>

         1.2.1   In this Agreement, where the context admits or requires, and
                 unless otherwise specifically provided herein (a) words
                 importing the singular number only shall include the plural
                 and vice versa, (b) words importing a specific gender shall
                 include the other gender, (c) references to Persons shall
                 include their heirs, executors, administrators or assigns as
                 the case may be, (d) references to "including" means
                 "including but not limited to", and "herein", "hereof", and
                 "hereunder" refer to this Agreement as a whole, and (e) any
                 reference to a number of "days" hereunder shall refer to
                 calendar days.

         1.2.2   The division of this Agreement into Sections and the insertion
                 of headings are for convenience of reference only and shall
                 not affect the interpretation hereof. References to statutory
                 provisions shall (unless otherwise expressly provided) be
                 construed as references to those provisions as in effect as
                 at the date of this Agreement.

SECTION 2

PURCHASED ASSETS

         2.1     Assets to be Sold and Purchased.   Subject to all of the terms
                 and conditions of this Agreement, at the Time of Closing, OGHC
                 shall sell and assign to Vital Products, and Vital Products
                 shall purchase from OGHC, all right, title and interest of
                 OGHC in and to the assets listed below, and which are referred
                 to hereinafter collectively as the "Purchased Assets":

         2.1.1   All of the Equipment used in the Childcare Division included
                 but not limited to;
                 - molds and dies related to the Baby Bath
                 - packaging molds and dies for the padded training seat.
                 - Mixing tank and  2kw RF welder as well as sealing machine
                   dies
                 - Custom equipment to produce the padded training seat and
                   formulations related to producing materials.

         2.1.2   the Intellectual Property used in the Childcare Division;

         2.1.3   the Agreements and Orders associated with the Childcare
                 Division; Listings at all national retailers across Canada
                 (the "Customer Lists").

         2.1.4   the Books and Records; and

         2.1.5   all rights and claims or causes of action against Third
                 Parties relating to any of the assets listed in the foregoing
                 subsections 2.1.1 through 2.1.4 arising from or based on
                 events or circumstances occurring or existing or omissions
                 to act occurring prior to the Time of Closing.

         2.2     Assumption of Liabilities.

         2.2.1   Vital Products shall be responsible for (and OGHC shall have
                 no responsibility for) all liabilities after the Time of
                 Closing or the Time of Delivery, as applicable, related to
                 the Purchased Assets or the use of the Purchased Assets
                 (the "Assumed Liabilities") including, without limitation,
                 any Losses arising from or related to (a) events which
                 occurred after the Time of Closing or (b) products made or
                 sold by Vital Products, its Affiliates, sublicensees or
                 assignees after the Time of Closing.

                                      3
<PAGE>

         2.2.2   Except as expressly set forth in Section 2.2.1, the Assumed
                 Liabilities shall exclude liabilities directly related to
                 actions taken or omissions to act by OGHC or its Affiliates
                 or any of their respective subcontractors whether prior to
                 or after the Time of Closing or the Time of Delivery, as
                 applicable, based upon OGHC's or OGHC's Affiliates production
                 of Childcare Products, unless any such action or omission to
                 act by OGHC or its Affiliate was requested by Vital Products,
                 or came about as a result of any breach of this Agreement by
                 Vital Products or to the extent of Vital Products' or its
                 Affiliates' negligence or willful misconduct.

SECTION 3

PURCHASE CONSIDERATION

         3.1     Purchase Consideration.  As the total Purchase Consideration
                 payable to OGHC hereunder for the Purchased Assets, Vital
                 Products shall issue to OGHC an amount of shares of Common
                 Stock having an aggregate Fair Market Value of $250,000 and
                 OGHC agrees to accept a term note in the amount of $750,000
                 due to be repaid upon effectiveness of Vital Products
                 registration statement from available funds.

         3.2     Transfer Taxes.  Vital Products shall be responsible for and
                 shall pay all sales taxes, documentary transfer taxes or other
                 transfer taxes assessed it as purchaser of the Purchased
                 Assets. OGHC shall be responsible for and shall pay all
                 sales taxes, documentary transfer taxes or other transfer
                 taxes assessed it as seller of the Purchased Assets. OGHC
                 shall also be responsible for and shall pay all federal,
                 foreign, state or local taxes payable on any income or gain
                 resulting from the sale of the Purchased Assets to Vital
                 Products, including any withholding taxes imposed in lieu of
                 taxes on income or gain. Vital Products and OGHC shall
                 cooperate, at Vital Products' cost and expense, in the
                 timely making and filing of all filings, tax returns, reports
                 and forms as may be required with respect to the sales
                 taxes, documentary taxes or other transfer taxes assessed to
                 Vital Products as purchaser of the Purchased Assets. Vital
                 Products and OGHC shall cooperate, at OGHC's cost and
                 expense, in the timely making and filing of all filings,
                 tax returns, reports and forms as may be required with
                 respect to the sales taxes, documentary transfer taxes or
                 other transfer taxes assessed OGHC as seller of the Purchased
                 Assets or assessed OGHC with respect to any federal, foreign,
                 state or local taxes payable on any income or gain resulting
                 from the sale of the Purchased Assets to Vital Products,
                 including any withholding taxes imposed in lieu of taxes on
                 income or gain.

                                      4
<PAGE>

         3.3     Allocation of Purchase Price.  The vendor and purchaser agree
                 to the following allocation of the purchase price and
                 stipulate that said purchase price has been determined based
                 upon the fair market value of the specific assets being
                 transferred:

                 (1) Manufacturing Equipment as follows:

                     A) 100 US Gallon Heated Mixing tank with Custom PLC
                        Controls and heated dispensing Nozzle

                     B) A 2Kw RF sealing Machine with custom sealing
                        dies mounted

                     C) 4 RF Dies for manufacturing the Plastic Bags

                     D) A multi stage Progressive Die for Manufacturing the
                        Clips

                     E) Cutting Dies for manufacturing the Display
                        (Base and Upper)

                     F) Rollers for bag making.
                                                                      $ 250,000

                 (2) One custom 25 by 40 vac-former with full servo drive and
                     transfer unites custom programmed plc and touch screen
                     2 custom fuzzy logic 8 zone temp controllers
                     boards                                           $ 150,000

                 (3) Custom mold and die for potty seat packaging     $  20,000

                 (4) Custom baby bath mold                            $ 125,000

                 (5) Custom baby bath plug mold                       $  35,000

                 (6) Electric pallet truck                            $  20,000

                 (7) Customer/Client Lists                            $ 400,000
                                                                    -----------
                                                    Total           $ 1,000,000

SECTION 4

CLOSING

         4.1     Closing Date, Time and Place.   The transfer of title to the
                 Purchased Assets and the closing of the Transactions shall
                 occur on the Effective Date ("Closing Date") at or before
                 1 p.m. and shall occur or be deemed to have occurred at the
                 offices of OGHC located at 85 Corstate Avenue, Unit #1,
                 Concord, Ontario, Canada.

         4.2     Closing Arrangements.

                                      5
<PAGE>

         4.2.1   OGHC's Delivery of Closing Documents.  At the Closing, OGHC
                 shall deliver or cause to be delivered to Vital Products four
                 (4) originals or facsimiles (with originals to follow) of each
                 of the following, in each case duly executed by OGHC:

                 (1) this Agreement; and

                 (2) an Irrevocable Bill of Sale substantially in the form of
                     Exhibit A attached hereto and incorporated herein by
                     reference.

         4.2.2   Vital Products Payment of Purchase Consideration and Delivery
                 of Closing Documents.  At the Closing, Vital Products shall
                 deliver or cause to be delivered to OGHC:

                 (1) the Common Stock certificates issued to OGHC evidencing
                     the Purchase Consideration, which shall contain
                     appropriate legends relating to transfer restrictions
                     under applicable securities laws. To the extent this is
                     not practicable immediately at the Closing, the
                     requirements for delivery of the Common Stock certificates
                     shall be fulfilled by Vital Products as soon as reasonably
                     practicable by Vital Products but in any event no later
                     than two (2) days after Closing; and

                 (2) originals or facsimiles (with originals to follow) of this
                     Agreement duly executed by Vital Products.

         4.3     Transfer after Closing Date.

         4.3.1   Purchased Assets Physical Transfer.  As soon as reasonably
                 practicable and within ten (10) days after the Closing Date,
                 OGHC shall deliver to Vital Products certain physical
                 Inventory, Equipment, and Other Materials described in
                 Section 2.1, the Books and Records, and binders and files
                 relating to the Childcare Division that were made available to
                 Vital Products by OGHC or its Affiliates for review during its
                 due diligence review prior to the Closing Date (the "Purchased
                 Assets Physical Transfer"). The Purchased Assets Physical
                 Transfer shall be effected by OGHC's delivery of the foregoing
                 Purchased Assets at OGHC's reasonable cost and expense pursuant
                 to written instructions as to the requested timing and delivery
                 location (but not as to format) specified by Vital Products to
                 OGHC and reasonably acceptable to OGHC; provided that such
                 obligations shall be subject to Vital Products providing
                 reasonable cooperation to facilitate receipt of such
                 deliveries. Notwithstanding that title to the Purchased
                 Assets transfers to Vital Products at the Time of Closing,
                 risk of loss with respect to the Purchased Assets transfers
                 to Vital Products only at the time of delivery (the "Time of
                 Delivery") to Vital Products of the Purchased Assets at the
                 delivery location specified by Vital Products in its written
                 instructions to OGHC, and any failure by OGHC to deliver the
                 Purchased Assets to Vital Products in accordance with such
                 written instructions, to the extent such failure results in
                 Losses (as defined in Section 6.1) to Vital Products, shall
                 be indemnifiable by OGHC to the extent set forth in Section 6.
                 Export duties and customs clearance with respect to the
                 transfer of the Purchased Assets shall be the joint
                 responsibility of OGHC and Vital Products. After the Closing,
                 Vital Products shall be responsible for all costs related to
                 the recordation and perfection of the sale and assignment of
                 the Purchased Assets and Vital Products shall bear all costs
                 and fees imposed by applicable laws and regulations and
                 Governmental Bodies related thereto and all postage costs
                 related thereto.

                                      6
<PAGE>

SECTION 5

REPRESENTATIONS AND WARRANTIES

         5.1     Representations and Warranties of Vital Products. Vital
                 Products hereby represents and warrants to OGHC at the Time
                 of Closing, and acknowledges that OGHC is relying on such
                 representations and warranties in connection with the
                 Transactions, that:

         5.1.1   Incorporation, Organization and Qualification of Vital
                 Products.   Vital Products is a corporation duly incorporated,
                 validly existing and in good standing under the law of the
                 jurisdiction of its incorporation, and has the corporate power
                 to own or lease its property and to carry on its business as
                 now being conducted by it and to execute, deliver and perform
                 this Agreement.

         5.1.2   Corporate Action. This Agreement, and any other agreements
                 and instruments executed by Vital Products in connection with
                 the Transactions are the valid and binding obligations of
                 Vital Products, enforceable in accordance with their
                 respective terms, subject to bankruptcy, insolvency or similar
                 laws of general application affecting the enforcement of
                 rights of creditors, and subject to equitable principles
                 limiting rights to specific performance or other equitable
                 remedies, and subject to the effect of federal and state
                 securities laws on the enforceability of indemnification
                 provisions relating to liabilities arising under such laws.
                 The execution, delivery and performance of this Agreement
                 and any other agreement and instruments executed by Vital
                 Products in connection with the Transactions have been duly
                 authorized by Vital Products by all necessary corporate
                 action. Vital Products has the full legal right, power and
                 authority to enter into and perform the Transactions, without
                 need for Vital Products to obtain any consent, approval,
                 authorization, license or order of, or give any notice to
                 or make any filing with, any Governmental Body or other
                 Person. This Agreement has been duly executed and delivered
                 by Vital Products and, as of the Closing Date, each of the
                 other agreements to be entered into in connection herewith
                 and to which Vital Products is a Party have been duly and
                 validly executed and delivered by Vital Products.

         5.1.3   No Default.   The execution, delivery and performance of this
                 Agreement by Vital Products and the consummation by Vital
                 Products of the Transactions hereby do not conflict with
                 any provision of the corporate charter or By-Laws of Vital
                 Products, and do not contravene, conflict with or result in
                 a violation of any law, regulation, order, judgment or decree
                 to which Vital Products or any of its properties is subject.

         5.1.4   Due Diligence.   Vital Products has utilized its own expertise
                 to analyze and evaluate the value of the Purchased Assets
                 based upon the information provided to Vital Products by OGHC
                 and has solely relied on such analysis and evaluations, along
                 with the representations and warranties of OGHC, in deciding
                 to enter into this Agreement.

         5.1.5   Litigation Matters.   There is no pending proceeding against
                 Vital Products or any of its Affiliates, and, to Vital
                 Products' knowledge, no Person has threatened to commence
                 any proceeding, at law or in equity or by or before any
                 Governmental Body that challenges, or may have the effect
                 of preventing, delaying or making illegal or otherwise
                 interfering with, any of the Transactions.

                                      7
<PAGE>

         5.2     Representations and Warranties of OGHC. OGHC hereby represents
                 and warrants to Vital Products at the Time of Closing, and
                 acknowledges that Vital Products is relying on such
                 representations and warranties in connection with the
                 Transactions, that:

         5.2.1   Incorporation, Organization and Qualification of OGHC.
                 OGHC is a corporation duly incorporated, validly existing
                 and in good standing under the laws of Delaware, and has the
                 corporate power to own or lease its property and to carry on
                 the business now being conducted by it and to execute, deliver
                 and perform this Agreement.

         5.2.2   Corporate Action.  This Agreement, and any other agreements
                 and instruments executed by OGHC in connection with the
                 Transactions are the valid and binding obligations of OGHC,
                 enforceable in accordance with their respective terms, subject
                 to bankruptcy, insolvency or similar laws of general
                 application affecting the enforcement of rights of creditors,
                 and subject to equitable principles limiting rights to
                 specific performance or other equitable remedies, and subject
                 to the effect of federal and state securities laws on the
                 enforceability of indemnification provisions relating to
                 liabilities arising under such laws. The execution, delivery
                 and performance of this Agreement and any other agreement and
                 instruments executed by OGHC in connection with the
                 Transactions have been duly authorized by OGHC by all
                 necessary corporate action. OGHC has the full legal right,
                 power and authority to enter into and perform the
                 Transactions, without need for OGHC to obtain any consent,
                 approval, authorization, license or order of, or give any
                 notice to or make any filing with, any Governmental Body
                 or other Person. This Agreement has been duly executed and
                 delivered by OGHC and, as of the Closing Date, each of the
                 other agreements to be entered into in connection herewith
                 and to which OGHC is a Party have been duly and validly
                 executed and delivered by OGHC.

         5.2.3   Non-Contravention; Consents.  The execution, delivery and
                 performance of this Agreement by OGHC and the consummation
                 by OGHC of the Transactions hereby do not (i) conflict with
                 any provision of the corporate charter or by-laws of OGHC,
                 (ii) do not contravene, conflict with or result in a violation
                 of any law, regulation, order, judgment or decree to which
                 OGHC or any of its properties is subject, (iii) contravene,
                 conflict with or result in a violation or breach of, or
                 result in a default under, any provision of any written, oral,
                 implied or other agreement, contract, understanding or
                 arrangement to which OGHC or any of the Purchased Assets is
                 subject, or (iv) result in the imposition or creation of any
                 encumbrance upon or with respect to any of the Purchased
                 Assets.

         5.2.4   Title to the Purchased Assets.

                 (1) OGHC is the sole and exclusive owner of, and has the full
                     right to sell, transfer, and assign all of the Purchased
                     Assets to Vital Products, and has good and marketable
                     title thereto and the Purchased Assets are free and clear
                     of any and all liens, pledges, restrictions or
                     encumbrances.

                                      8
<PAGE>

                 (2) Following the Closing, Vital Products will be the sole and
                     exclusive owner of, and have good and marketable title
                     to, the Purchased Assets.

         5.2.5   Litigation Matters.  There is no pending proceeding against
                 OGHC or any of its Affiliates, and, no Person has threatened
                 to commence any proceeding, at law or in equity or by or
                 before any Governmental Body that (i) relates to any of the
                 Purchased Assets or (ii) challenges, or may have the effect
                 of preventing, delaying or making illegal or otherwise
                 interfering with, any of the Transactions. No event has
                 occurred, and no claim, dispute or other condition or
                 circumstance exists, that could reasonably be expected
                 to give rise to or serve as the basis for the commencement
                 of any such proceeding.

         5.2.6   Intellectual Property.  OGHC owns and holds all right, title
                 and interest in its Intellectual Property and has the
                 exclusive right to use, sell, license, sublicense, or dispose
                 of, and has the exclusive right to bring action for
                 infringement, misappropriation, and other violations.

         5.2.7   Certain Claims.  During the period preceding the date of this
                 Agreement, OGHC has not received any notice, demand, claim,
                 action, suit, hearing, proceeding or notice of violation of
                 a civil, criminal or administrative nature by or before any
                 Governmental Body against or involving OGHC or its Affiliates
                 concerning the Purchased Assets that has been commenced or
                 threatened (including any investigations or inquiries).

         5.2.8   Maintenance Fees.  All maintenance and similar fees in respect
                 of any Purchased Assets that are due and payable immediately
                 prior to the Time of Closing have been paid in full or steps
                 have been taken to arrange for such payments to be made on a
                 timely basis.

SECTION 6

INDEMNIFICATION; HOLD HARMLESS COVENANT AND OTHER POST-CLOSING COVENANTS

         6.1     OGHC's Indemnification.  OGHC shall indemnify and hold
                 harmless Vital Products and its Affiliates and each of its or
                 their directors, officers, employees, advisors, shareholders,
                 representatives, agents, successors and assigns (collectively,
                 the "Vital Products Indemnified Parties") from and against any
                 and all losses, damages, liabilities, judgments, objections,
                 costs, and expenses, including but not limited to reasonable
                 attorneys' fees (collectively, "Losses") sustained, suffered,
                 or incurred by or imposed upon any Vital Products Indemnified
                 Party as a result of any claim, action, suit or proceeding
                 (collectively, "Claims") arising out of, based upon or related
                 to:

         6.1.1   liabilities of OGHC or its Affiliates to the extent related to
                 the Purchased Assets other than the Assumed Liabilities;

         6.1.2   any tax liability of OGHC or its Affiliates (other than taxes
                 for which Vital Products is expressly responsible pursuant to
                 this Agreement);

                                       9
<PAGE>

         6.1.3   any breach of any representation, warranty, covenant,
                 agreement or obligation made by OGHC pursuant to this
                 Agreement, provided that, in each case, OGHC shall not be
                 obligated to indemnify any Vital Products Indemnified Parties
                 with respect to, and to the extent of, any Claims or Losses
                 for which Vital Products is obligated to indemnify OGHC
                 Indemnified Parties.

         6.2     Vital Products' Indemnification.  Vital Products shall
                 indemnify and hold harmless OGHC and its Affiliates and each
                 of its or their directors, officers, employees, advisors,
                 shareholders, representatives, agents, successors and
                 assigns (collectively, the "OGHC Indemnified Parties")
                 from and against any and all Losses sustained, suffered,
                 or incurred by or imposed upon any OGHC Indemnified Party
                 as a result of any Claim arising out of, based upon or related
                 to:

         6.2.1   any of the Assumed Liabilities;

         6.2.2   any breach of any representation, warranty, covenant,
                 agreement or obligation made by Vital Products pursuant to
                 this Agreement, and

         6.2.3   any tax liability of Vital Products or its Affiliates (other
                 than taxes for which OGHC is expressly responsible pursuant to
                 this Agreement); provided that, in each case, Vital Products
                 shall not be obligated to indemnify any OGHC Indemnified
                 Parties with respect to, and to the extent of, any Claims or
                 Losses for which OGHC is obligated to indemnify Vital Products
                 Indemnified Parties pursuant to Section 6.1.

         6.3     Procedure.  If a claim or demand by a Third Party is made
                 against an indemnified Party, and if such Party intends to
                 seek indemnity with respect thereto under this Section, such
                 indemnified Party shall promptly notify the indemnifying Party
                 in writing of such claims or demands setting forth such claims
                 in reasonable detail. The failure of the indemnified Party to
                 give the indemnifying Party prompt notice as provided herein
                 shall not relieve the indemnifying Party of any of its
                 obligations under this Section except to the extent that
                 the indemnifying Party is materially prejudiced by such
                 failure (in which case the indemnified Party shall have been
                 deemed to have forfeited its rights to indemnification
                 hereunder). The indemnifying Party shall have ten (10) days
                 after receipt of such notice to undertake, through counsel of
                 its own choosing and at its own expense, the defense
                 (or settlement) thereof, and the indemnified Party shall
                 cooperate with it in connection therewith; provided, that
                 the indemnified Party may contribute to the strategy and
                 content in such defense (or settlement) through counsel
                 chosen by such indemnified Party and the fees and expenses of
                 such counsel shall be borne by such indemnified Party unless
                 (i) the employment thereof has been specifically authorized
                 by the indemnifying Party in writing, (ii) there exists a
                 conflict of interest between the interests of the indemnified
                 Party and the indemnifying Party, or (iii) the indemnifying
                 Party has after ten (10) days of receipt of the applicable
                 notice failed to assume such defense and employ counsel, in
                 each of which events the indemnified Party may retain
                 counsel, and the indemnifying Party shall pay the reasonable
                 fees and expenses of such counsel for the indemnified Party
                 (but in no event shall the indemnifying Party be obligated
                 to pay reasonable fees and expenses of more than one firm
                 (in addition to local counsel), which firm shall serve as
                 counsel for all indemnified Parties). So long as the
                 indemnifying Party is reasonably contesting any such claim
                 in good faith, the indemnified Party shall not pay or settle
                 any such claim. If the indemnifying Party does not notify the

                                      10
<PAGE>

                 indemnified Party within ten (10) days after the receipt of
                 the indemnified Party's notice of a claim of indemnity
                 hereunder that it elects to undertake the defense
                 (or settlement) thereof, the indemnified Party shall have
                 the right to contest, settle or compromise the claim but
                 shall not thereby waive any right to indemnity therefor
                 pursuant to this Agreement. The indemnifying Party shall
                 not, except with the consent of the indemnified Party, enter
                 into any settlement that does not include as an unconditional
                 term thereof the giving by the Person or Persons asserting
                 such claim to all indemnified Parties (i.e. OGHC Indemnified
                 Parties or Vital Products Indemnified Parties, as the case
                 may be) an unconditional release from all liability with
                 respect to such claim.

SECTION 7

MISCELLANEOUS

         7.1     Further Assurances and Actions.

         7.1.1   In addition to any other obligations hereunder, each of the
                 Parties hereto upon the request of the other Party hereto,
                 whether before or after the Time of Closing and without
                 further consideration, shall do, execute, acknowledge and
                 deliver or cause to be done, executed, acknowledged or
                 delivered all such further acts, deeds, documents,
                 assignments, transfers, instruments, amendments,
                 conveyances, powers of attorney and assurances as may
                 be reasonably necessary or desirable to effect complete
                 consummation of the Transactions contemplated by this
                 Agreement and to give full and binding effect to the rights
                 expressly granted herein.  OGHC and Vital Products each agree
                 to execute and deliver such other documents, certificates,
                 agreements, amendments, instruments and other writings and
                 to take such other actions as may be reasonably necessary
                 in order to consummate or implement expeditiously the
                 Transactions contemplated by this Agreement.

         7.2     Notices.  Any notice, direction or other instrument required
                 or permitted to be given to OGHC hereunder shall be in writing
                 and sent via certified or registered mail, return receipt
                 requested, overnight courier, or by delivering the same by
                 telecommunication, with the original sent by one of the
                 foregoing manners, addressed to OGHC as follows:

                 To:    On The Go Healthcare, Inc.
                        85 Corstate Avenue, Unit #1
                        Concord, Ontario, Canada L4K 4Y2
                        Attn: Stuart Turk, President and CEO
                        Fax: (905) 660 - 5738

                 Copy to:       Trombly Business Law
                                1163 Walnut St., Ste. 7
                                Newton, MA 02461
                                Attn:  Amy M. Trombly, Esq.
                                Fax:   (617) 243 - 0066
                                Efax:  (309) 406 - 1426

                                      11
<PAGE>

                 Any notice, direction or other instrument required or
                 permitted to be given to Vital Products hereunder shall
                 be in writing and sent via registered or certified mail,
                 return receipt requested, or overnight courier, or by
                 delivering the same by fax with the original sent by one
                 of the foregoing manners, addressed as follows:

                 To:    Vital Products, Inc.
                        35 Adesso Drive
                        Concord, Ontario
                        Canada L4K 4Y2
                        Attn:  Michael Levine, CEO
                        Fax:  (416) 650 - 1255

                 Any such notice, direction or other instrument, if delivered,
                 shall be deemed to have been given on the date on which it was
                 delivered and if transmitted by fax shall be deemed to have
                 been given at the opening of business in the office of the
                 addressee on the business day next following the transmission
                 thereof, provided that proof of successful transmission is
                 provided to the intended recipient on request by the intended
                 recipient. Any Party hereto may change its address for service
                 from time to time by notice given to the other Parties hereto
                 in accordance with the foregoing.

         7.3     Relationship of the Parties. Nothing contained in this
                 Agreement shall be deemed or construed as creating a joint
                 venture, partnership, agency, employment or fiduciary
                 relationship between the Parties. No Party to this Agreement
                 nor its agents have any authority of any kind to bind the
                 other Party in any respect whatsoever.

         7.4     Applicable Law.  This Agreement shall be construed and enforced
                 in accordance with, and the rights of the Parties hereto shall
                 be governed by, the laws of the State of Delaware, without
                 reference to conflicts of law principles.

         7.5     Entire Agreement.  This Agreement, including the Exhibits
                 hereto, constitute the entire agreement between the Parties
                 hereto with respect to the Transactions and, except as stated
                 herein and in the instruments and documents to be executed
                 and delivered pursuant hereto, contain all of the agreements
                 between the Parties hereto, and there are no verbal or written
                 agreements or understandings between the Parties hereto and
                 relating the subject matter hereof not reflected in this
                 Agreement, all of which agreement or understandings are
                 hereby superseded. This Agreement may not be amended or
                 modified in any respect except by written instrument executed
                 by each of the Parties hereto.

         7.6     Counterparts.  This Agreement may be executed in two or more
                 counterparts, which may be executed via facsimile, each of
                 which shall be deemed to be an original, and all of which
                 together shall constitute one and the same Agreement.

         7.7     Binding Agreement; Parties in Interest.  This Agreement and
                 the rights and obligations of the Parties hereunder shall
                 inure to the benefit of and shall be binding upon the Parties
                 hereto and their respective heirs, executors, successors,
                 administrators, and permitted assigns.

                                      12
<PAGE>

         7.8     Waiver; Remedies Cumulative.  No failure or delay on the part
                 of a Party hereto to exercise any right, power, or privilege
                 hereunder or under any instrument executed pursuant hereto on
                 any one occasion shall operate as a waiver of such right,
                 power or privilege in the future; nor shall any single or
                 partial exercise of any right, power, or privilege preclude
                 any other or further exercise thereof or the exercise of any
                 other right, power, or privilege. All rights and remedies
                 granted herein shall be cumulative and in addition to other
                 rights and remedies to which the Parties may be entitled at
                 law or in equity.

         7.9     Severability.

         7.9.1   In the event any portion of this Agreement is or is held by
                 any court or tribunal of competent jurisdiction to be illegal,
                 void or ineffective, the remaining provisions hereof shall
                 remain in full force and effect.

         7.9.2   If any of the terms or provisions of this Agreement are in
                 conflict with any applicable statute or rule of law, then such
                 terms or provisions shall be deemed inoperative to the extent
                 that they may conflict therewith and shall be deemed to be
                 modified to the minimum extent necessary to procure conformity
                 with such statute or rule of law.

     IN WITNESS WHEREOF, and intending to be legally bound hereby, this Asset
Sale Agreement has been duly executed by the authorized representatives of the
Parties hereto as of the date first above written.

ON THE GO HEALTHCARE, INC.

By: /s/  Stuart Turk
----------------------------
Stuart Turk, President, CEO
Chairman and Director

VITAL PRODUCTS, INC.

By: /s/  Michael Levine
----------------------------
Michael Levine, CEO

<PAGE>

                                                                      Exhibit A

                          IRREVOCABLE BILL OF SALE

     This is an Irrevocable Bill of Sale from On The Go Healthcare, Inc., a
corporation organized under the laws of Delaware, whose registered office is at
85 Corstate Avenue, Unit #1, Concord, Ontario, Canada L4K 4Y2 ("OGHC"), to Vital
Products, Inc., a corporation organized under the laws of the state of Delaware
with its principal offices at 35 Adesso Drive, Concord, Ontario L4k 4Y2 Canada
("Vital Products") pursuant to a certain Asset Sale Agreement dated as of
July 5, 2005 by and among OGHC and Vital Products (the "Agreement").

     For good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, OGHC hereby sells, assigns, transfers, conveys,
delivers and contributes to Vital Products, its successors and assigns, to
have and to hold forever, all of its right, title and interest in and to the
Purchased Assets (as defined in the Agreement), subject to the applicable
provisions of the Agreement.

     From and after the Closing Date (as defined in the Agreement) upon request
of Vital Products, OGHC shall, at Vital Products' expense, duly execute,
acknowledge and deliver all such further acts, deeds, assignments, transfers,
conveyances, powers of attorney and assurances as may be required to convey to
and vest the Purchased Assets in Vital Products or its permitted assignees and
as may be appropriate to protect Vital Products' rights, title and interest in
and enjoyment of all the Purchased Assets and as may be appropriate otherwise
to carry out the transactions contemplated by the Agreement and this
Irrevocable Bill of Sale.

     IN WITNESS WHEREOF, and intending to be legally bound, the undersigned has
duly executed and delivered this Irrevocable Bill of Sale as of this
July 5, 2005.

ON THE GO HEALTHCARE, INC.

/s/  Stuart Turk
---------------------------------
Stuart Turk, President, CEO
Chairman and Director

VITAL PRODUCTS, INC.

/s/  Michael Levine
----------------------------
Michael Levine, CEO

<PAGE>Exhibit 4.1

 

 

 

 

GULF POWER COMPANY

 

TO

 

JPMORGAN CHASE BANK, N.A.

TRUSTEE

 

 

 

TWELFTH SUPPLEMENTAL INDENTURE

 

DATED AS OF AUGUST 30, 2005

 

 

 

 

SERIES L 5.65% SENIOR NOTES

 

DUE SEPTEMBER 1, 2035

 

 

 

 

 

 

 

 

 

	
            TABLE OF CONTENTS1

 
 
	
            ARTICLE 1
 	
            1
 
	
            Series L Senior Notes
 	
            1
 
	
            SECTION 101.  Establishment
 	
            1
 
	
            SECTION 102.  Definitions
 	
            2
 
	
            SECTION 103.  Payment of Principal and Interest
 	
            3
 
	
            SECTION 104.  Denominations
 	
            4
 
	
            SECTION 105.  Global Securities
 	
            4
 
	
            SECTION 106.  Transfer
 	
            4
 
	
            SECTION 107.  Redemption at the Company’s Option
 	
            5
 
	
             
 	
             
 
	
            ARTICLE 2
 	
            5
 
	
            Miscellaneous Provisions
 	
            5
 
	
            SECTION 201.  Recitals by Company
 	
            5
 
	
            SECTION 202.  Ratification and Incorporation of Original Indenture
 	
            6
 
	
            SECTION 203.  Executed in Counterparts
 	
            6
 

 

 

_________________________

1   This Table of Contents does not constitute part of the Indenture or have any bearing upon the interpretation of any of its terms and provisions.

 

 

 

 

THIS TWELFTH SUPPLEMENTAL INDENTURE is made as of the 30th day of August, 2005 by and between GULF POWER COMPANY, a Maine corporation, One Energy Place, Pensacola, Florida 32520-0786 (the “Company”), and JPMORGAN CHASE BANK, N.A., a national banking association, 4 New York Plaza, New York, New York  10004 (the “Trustee”).

 

W I T N E S S E T H:

 

WHEREAS, the Company has heretofore entered into a Senior Note Indenture, dated as of January 1, 1998 (the “Original Indenture”), with JPMorgan Chase Bank, N.A. (formerly known as The Chase Manhattan Bank), as heretofore supplemented;

 

WHEREAS, the Original Indenture is incorporated herein by this reference and the Original Indenture, as heretofore supplemented and as further supplemented by this Twelfth Supplemental Indenture, is herein called the “Indenture”

 

WHEREAS, under the Original Indenture, a new series of Senior Notes may at any time be established pursuant to a supplemental indenture executed by the Company and the Trustee;

 

WHEREAS, the Company proposes to create under the Indenture a new series of Senior Notes;

 

WHEREAS, additional Senior Notes of other series hereafter established, except as may be limited in the Original Indenture as at the time supplemented and modified, may be issued from time to time pursuant to the Indenture as at the time supplemented and modified; and

 

WHEREAS, all conditions necessary to authorize the execution and delivery of this Twelfth Supplemental Indenture and to make it a valid and binding obligation of the Company have been done or performed.

 

NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

ARTICLE 1

 

Series L Senior Notes

 

SECTION 101.  Establishment.  There is hereby established a new series of Senior Notes to be issued under the Indenture, to be designated as the Company’s Series L 5.65% Senior Notes due September 1, 2035 (the “Series L Notes”).

 

There are to be authenticated and delivered $60,000,000 principal amount of Series L Notes, and such principal amount of the Series L Notes may be increased from time to time pursuant to Section 301 of the Original Indenture.  All Series L Notes need not be issued at the same time and such series may be reopened at any time, without the consent of the Holders thereof, for issuance of 

 

 

additional Series L Notes.  Any such additional Series L Notes will have the same interest rate, maturity and other terms as those initially issued.  No Series L Notes shall be authenticated and delivered except as provided by Sections 203, 303, 304, 907 and 1107 of the Original Indenture.  The Series L Notes shall be issued in definitive fully registered form.

 

The Series L Notes shall be issued in the form of one or more Global Securities in substantially the form set out in Exhibit A hereto.  The Depositary with respect to the Series L Notes shall be The Depository Trust Company.

 

The form of the Trustee’s Certificate of Authentication for the Series L Notes shall be in substantially the form set forth in Exhibit B hereto.

 

Each Series L Note shall be dated the date of authentication thereof and shall bear interest from the date of original issuance thereof or from the most recent Interest Payment Date to which interest has been paid or duly provided for.

 

SECTION 102.  Definitions.  The following defined terms used herein shall, unless the context otherwise requires, have the meanings specified below.  Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Original Indenture.

 

 “Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Series L Notes to the Initial Redemption Date that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Initial Redemption Date.

 

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

 

 “Independent Investment Banker” means an independent investment banking institution of national standing appointed by the Company and reasonably acceptable to the Trustee.

 

	
            “Initial Redemption Date” means September 1, 2015.
 

 

“Interest Payment Dates” means March 1 and September 1 of each year, commencing March 1, 2006.

 

	
            “Original Issue Date” means August 30, 2005.
 

 

	
            “Redemption Price” has the meaning given to it in Section 107 hereof.
 

 

 “Reference Treasury Dealer” means a primary United States Government securities dealer in New York City appointed by the Company and reasonably acceptable to the Trustee.

 

 

 

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

 

 “Regular Record Date” means, with respect to each Interest Payment Date, the close of business on the 15th calendar day preceding such Interest Payment Date (whether or not a Business Day).

 

	
            “Stated Maturity” means September 1, 2035.
 

 

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

 

SECTION 103.  Payment of Principal and Interest.  The principal of the Series L Notes shall be due at Stated Maturity (unless earlier redeemed).  The unpaid principal amount of the Series L Notes shall bear interest at the rate of 5.65% per annum until paid or duly provided for.  Interest shall be paid semi-annually in arrears on each Interest Payment Date to the Person in whose name the Series L Notes are registered on the Regular Record Date for such Interest Payment Date, provided that interest payable at the Stated Maturity or on a Redemption Date as provided herein will be paid to the Person to whom principal is payable.  Any such interest that is not so punctually paid or duly provided for will forthwith cease to be payable to the Holders on such Regular Record Date and may either be paid
to the Person or Persons in whose name the Series L Notes are registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Holders of the Series L Notes not less than ten (10) days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange, if any, on which the Series L Notes shall be listed, and upon such notice as may be required by any such exchange, all as more fully provided in the Original Indenture.

 

Payments of interest on the Series L Notes will include interest accrued to but excluding the respective Interest Payment Dates.  Interest payments for the Series L Notes shall be computed and paid on the basis of a 360-day year of twelve 30-day months.  In the event that any date on which interest is payable on the Series L Notes is not a Business Day, then a payment of the interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of any such delay), with the same force and effect as if made on the date the payment was originally payable.

 

Payment of the principal and interest due at the Stated Maturity or earlier redemption of the Series L Notes shall be made upon surrender of the Series L Notes at the Corporate Trust Office of the Trustee.  The principal of and interest on the Series L Notes shall be paid in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.  Payments of interest (including interest on any Interest Payment Date) will 

 

 

be made, subject to such surrender where applicable, at the option of the Company, (i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or (ii) by wire transfer or other electronic transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least sixteen (16) days prior to the date for payment by the Person entitled thereto.

 

SECTION 104.  Denominations.  The Series L Notes may be issued in the denominations of $1,000, or any integral multiple thereof.

 

SECTION 105.  Global Securities.  The Series L Notes will be issued in the form of one or more Global Securities registered in the name of the Depositary (which shall be The Depository Trust Company) or its nominee.  Except under the limited circumstances described below, Series L Notes represented by one or more Global Securities will not be exchangeable for, and will not otherwise be issuable as, Series L Notes in definitive form.  The Global Securities described above may not be transferred except by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or to a successor Depositary or its nominee.

 

Owners of beneficial interests in such a Global Security will not be considered the Holders thereof for any purpose under the Indenture, and no Global Security representing a Series L Note shall be exchangeable, except for another Global Security of like denomination and tenor to be registered in the name of the Depositary or its nominee or to a successor Depositary or its nominee.  The rights of Holders of such Global Security shall be exercised only through the Depositary.

 

Subject to the procedures of the Depositary, a Global Security shall be exchangeable for Series L Notes registered in the names of persons other than the Depositary or its nominee only if (i) the Depositary notifies the Company that it is unwilling or unable to continue as a Depositary for such Global Security and no successor Depositary shall have been appointed by the Company, or if at any time the Depositary ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, at a time when the Depositary is required to be so registered to act as such Depositary and no successor Depositary shall have been appointed by the Company, in each case within 90 days after the Company receives such notice or becomes aware of such cessation, (ii) the Company in its sole discretion determines that such Global Security shall be so exchangeable, or (iii) there shall
have occurred an Event of Default with respect to the Series L Notes.  Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Series L Notes registered in such names as the Depositary shall direct.

 

SECTION 106.  Transfer.  No service charge will be made for any transfer or exchange of Series L Notes, but payment will be required of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith.  The Company shall not be required (a) to issue, transfer or exchange any Series L Notes during a period beginning at the opening of business fifteen (15) days before the day of the mailing of a notice pursuant to Section 1104 of the Original Indenture identifying the serial numbers of the Series L Notes to be called for redemption, and ending at the close of business on the day of the mailing, or (b) to transfer or exchange any Series L Notes theretofore selected for redemption in whole or in part, except the unredeemed portion of any Series L Note redeemed in part.

 

 

 

SECTION 107.  Redemption at the Company’s Option.  The Series L Notes will be subject to redemption at the option of the Company in whole or in part at any time and from time to time upon not less than 30 nor more than 60 days’ notice.  The Company shall have the right to redeem the Series L Notes in whole or in part at a redemption price (the “Redemption Price”) equal to:

 

(i)                if the Redemption Date is prior to September 1, 2015, the greater of (1) 100% of the principal amount of the Series L Notes to be redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Series L Notes being redeemed to September 1, 2015 (for purposes of this calculation, the remaining scheduled payment of principal is deemed payable on the Initial Redemption Date and the remaining scheduled payments of interest are those interest payments payable on or before the Initial Redemption Date) (excluding the portion of any such interest accrued to the date of redemption) discounted (for purposes of determining present value) to the Redemption Date on a semi-annual basis (assuming a
360-day year consisting of twelve 30-day months) at a discount rate equal to the Treasury Yield plus 20 basis points; or

 

(ii)               if the Redemption Date is on or after September 1, 2015, 100% of the principal amount of the Series L Notes to be redeemed, 

 

plus, in each case, accrued and unpaid interest thereon to the date of redemption.

 

The Trustee shall not be responsible for the calculation of the Redemption Price.  The Company shall calculate the Redemption Price and promptly notify the Trustee thereof.

 

In the event of redemption of the Series L Notes in part only, a new Series L Note or Notes for the unredeemed portion will be issued in the name or names of the Holders thereof upon the surrender thereof.

 

	
            The Series L Notes will not have a sinking fund.
 

 

Notice of redemption shall be given as provided in Section 1104 of the Original Indenture, except that any notice of redemption with respect to a redemption under Section 107(i) shall not specify the Redemption Price but only the manner of calculation thereof.

 

Any redemption of less than all of the Series L Notes shall, with respect to the principal thereof, be divisible by $1,000.

 

ARTICLE 2

 

Miscellaneous Provisions

 

SECTION 201.  Recitals by Company.  The recitals in this Twelfth Supplemental Indenture are made by the Company only and not by the Trustee, and all of the provisions contained in the Original Indenture in respect of the rights, privileges, immunities, powers and duties of the Trustee 

 

 

shall be applicable in respect of Series L Notes and of this Twelfth Supplemental Indenture as fully and with like effect as if set forth herein in full.

 

SECTION 202.  Ratification and Incorporation of Original Indenture.  As heretofore supplemented and as supplemented hereby, the Original Indenture is in all respects ratified and confirmed, and the Original Indenture as heretofore supplemented and as supplemented by this Twelfth Supplemental Indenture shall be read, taken and construed as one and the same instrument.

 

SECTION 203.  Executed in Counterparts.  This Twelfth Supplemental Indenture may be simultaneously executed in several counterparts, each of which shall be deemed to be an original, and such counterparts shall together constitute but one and the same instrument.

 

 

IN WITNESS WHEREOF, each party hereto has caused this instrument to be signed in its name and behalf by its duly authorized officers, all as of the day and year first above written.

 

	
            ATTEST:
 	
            GULF POWER COMPANY
 

 

 

	
            By:
 	
            /s/ Susan D. Ritenour
 	
            By:
 	
            /s/ Ronnie R. Labrato
 	
             

	
             
	
            Susan D. Ritenour
 	
            Ronnie R. Labrato
 	
             

	
             
	
            Secretary and Treasurer
 	
            Vice President, Chief Financial
 
	
             
	
            Officer and Comptroller
 	
             

							

 

 

	
            ATTEST:
 	
            JPMORGAN CHASE BANK, N.A., as Trustee
 

 

 

	
            By:
 	
            /s/ Kathleen Perry
 	
            By:
 	
            /s/ L. O’Brien
 	
             

	
             
	
            Kathleen Perry
 	
            L. O’Brien
 	
             

	
             
	
            Vice President
 	
            Vice President
 
						

 

 

 

EXHIBIT A

 

FORM OF SERIES L NOTE

 

 

 

 

 

	
            NO. ____
 	
            CUSIP NO. 402479BW8
 

 

 

GULF POWER COMPANY

SERIES L 5.65% SENIOR NOTE

DUE SEPTEMBER 1, 2035

 

 

	
            Principal Amount:
 	
            $_____________
 
	
            Regular Record Date:
 	
            15th calendar day prior to the applicable Interest Payment Date (whether or not a Business Day)
 
	
            Original Issue Date:
 	
            August 30, 2005
 
	
            Stated Maturity:
 	
            September 1, 2035
 
	
            Interest Payment Dates:
 	
            March 1 and September 1
 
	
            Interest Rate:
 	
            5.65% per annum
 
	
            Authorized Denominations:
 	
            $1,000 or any integral multiple thereof
 

 

 

Gulf Power Company, a Maine corporation (the “Company,” which term includes any successor corporation under the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to _____________________, or registered assigns, the principal sum of ___________________________DOLLARS ($___________) on the Stated Maturity (or upon earlier redemption) shown above, and to pay interest thereon from the Original Issue Date shown above, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually in arrears on each Interest Payment Date as specified above, commencing March 1, 2006, and on the Stated Maturity (or upon earlier redemption) at the rate per annum shown above until the principal hereof is paid or made available for payment and on any overdue principal and on any overdue installment of interest.  The
interest so payable, and punctually paid or duly provided for, on any Interest Payment Date (other than an Interest Payment Date that is the Stated Maturity or on a Redemption Date) will, as provided in such Indenture, be paid to the Person in whose name this Note (the “Note”) is registered at the close of business on the Regular Record Date as specified above next preceding such Interest Payment Date, provided that any interest payable at Stated Maturity or on any Redemption Date will be paid to the Person to whom principal is payable.  Except as otherwise provided in the Indenture, any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Note is registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Holders of Notes of this
series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not 

 

 

inconsistent with the requirements of any securities exchange, if any, on which the Notes of this series shall be listed, and upon such notice as may be required by any such exchange, all as more fully provided in the Indenture.

 

Payments of interest on this Note will include interest accrued to but excluding the respective Interest Payment Dates.  Interest payments for this Note shall be computed and paid on the basis of a 360-day year of twelve 30-day months.  In the event that any date on which interest is payable on this Note is not a Business Day, then payment of the interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of any such delay), with the same force and effect as if made on the date the payment was originally payable.  A “Business Day” shall mean any day other than a Saturday or a Sunday or a day on which banking institutions in New York City are authorized or required by law or executive order to remain closed or a day on which the Corporate Trust Office of the Trustee is closed for business.

 

Payment of the principal of and interest due at the Stated Maturity or earlier redemption of the Series L Notes shall be made upon surrender of the Series L Notes at the Corporate Trust Office of the Trustee.  The principal of and interest on the Series L Notes shall be paid in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.  Payment of interest (including interest on an Interest Payment Date) will be made, subject to such surrender where applicable, at the option of the Company, (i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or (ii) by wire transfer or other electronic transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least 16 days prior to
the date for payment by the Person entitled thereto.

 

REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

 

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

 

 

 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal.

 

Dated: 

 

 

	
            GULF POWER COMPANY
 

 

 

By:               

	
            Title:
 

 

 

Attest:

 

 

Title:

 

{Seal of GULF POWER COMPANY appears here}

 

 

 

 

 

 

 

CERTIFICATE OF AUTHENTICATION

 

	
            This is one of the Senior Notes referred to in the within-mentioned Indenture.
 

 

	
            JPMORGAN CHASE BANK, N.A.,
 
	
            as Trustee
 	
             

 

 

By:               

	
            Authorized Officer
 

 

 

 

(Reverse Side of Note)

 

This Note is one of a duly authorized issue of Senior Notes of the Company (the “Notes”), issued and issuable in one or more series under a Senior Note Indenture, dated as of January 1, 1998, as supplemented (the “Indenture”), between the Company and JPMorgan Chase Bank, N.A. (formerly known as The Chase Manhattan Bank), as Trustee (the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures incidental thereto reference is hereby made for a statement of the respective rights, limitation of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Notes issued thereunder and of the terms upon which said Notes are, and are to be, authenticated and delivered.  This Note is one of the series designated on the face hereof as Series L 5.65% Senior Notes due September 1, 2035
(the “Series L Notes”) which is unlimited in aggregate principal amount.  Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Indenture.

 

The Series L Notes will be subject to redemption at the option of the Company in whole or in part at any time and from time to time upon not less than 30 nor more than 60 days’ notice.  The Company shall have the right to redeem the Series L Notes in whole or in part at a redemption price (the “Redemption Price”) equal to:

 

(i)                if the Redemption Date is prior to September 1, 2015, the greater of (1) 100% of the principal amount of the Series L Notes to be redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Series L Notes being redeemed to September 1, 2015 (for purposes of this calculation, the remaining scheduled payment of principal is deemed payable on September 1, 2015 (the “Initial Redemption Date”) and the remaining scheduled payments of interest are those interest payments payable on or before the Initial Redemption Date) (excluding the portion of any such interest accrued to the date of redemption) discounted (for purposes of determining present value) to the Redemption Date on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at a discount rate equal to the Treasury Yield (as defined below) plus 20 basis points; or

 

(ii)               if the Redemption Date is on or after September 1, 2015, 100% of the principal amount of the Series L Notes to be redeemed, 

 

plus, in each case, accrued and unpaid interest thereon to the date of redemption.

 

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

 

 “Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Series L Notes to the Initial Redemption Date that would be utilized, at the time of selection and in 

 

 

accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Initial Redemption Date.

 

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

 

 “Independent Investment Banker” means an independent investment banking institution of national standing appointed by the Company and reasonably acceptable to the Trustee.

 

 “Reference Treasury Dealer” means a primary United States Government securities dealer in New York City appointed by the Company and reasonably acceptable to the Trustee.

 

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

 

The Trustee shall not be responsible for the calculation of the Redemption Price.  The Company shall calculate the Redemption Price and promptly notify the Trustee thereof.

 

In the event of redemption of this Note in part only, a new Note or Notes of this series for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the surrender hereof.  The Notes will not have a sinking fund.

 

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

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Notes of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of not less than a majority in principal amount of the Notes at the time Outstanding of each series to be affected.  The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Notes of each series at the time Outstanding, on behalf of the Holders of all Notes of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such
Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

 

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the 

 

 

principal of and interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed.

 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Security Register, upon surrender of this Note for registration of transfer at the office or agency of the Company for such purpose, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar and duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of this series, of authorized denominations and of like tenor and for the same aggregate principal amount, will be issued to the designated transferee or transferees.  No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

 

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

 

The Notes of this series are issuable only in registered form without coupons in denominations of $1,000 and any integral multiple thereof.  As provided in the Indenture and subject to certain limitations therein set forth, Notes of this series are exchangeable for a like aggregate principal amount of Notes of this series of a different authorized denomination, as requested by the Holder surrendering the same upon surrender of the Note or Notes to be exchanged at the office or agency of the Company.

 

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

 

 

 

 

 

 

ABBREVIATIONS

 

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

 

	
            TEN COM-
 	
            as tenants in
 	
            UNIF GIFT MIN ACT- _______ Custodian ________
 	
             

	
             
	
            common
 	
            (Cust)
 	
            (Minor)
 	
             

	
            TEN ENT-
 	
            as tenants by the
 	
             

	
             
	
            entireties
 	
            under Uniform Gifts to
 	
             

	
            JT TEN-
 	
            as joint tenants
 	
            Minors Act
 	
             

	
             
	
            with right of
 	
             

	
             
	
            survivorship and
 	
            ________________________
 
	
             
	
            not as tenants
 	
            (State)
 	
             

	
             
	
            in common
 	
             

															

 

 

Additional abbreviations may also be used

though not on the above list.

 

 

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

 

(please insert Social Security or other identifying number of assignee)

 

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE OF ASSIGNEE

 

 

the within Note and all rights thereunder, hereby irrevocably constituting and appointing

 

 

agent to transfer said Note on the books of the Company, with full power of substitution in the premises.

 

Dated:        

 

 

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

 

 

 

EXHIBIT B

 

CERTIFICATE OF AUTHENTICATION

 

 

	
            This is one of the Senior Notes referred to in the within-mentioned Indenture.
 

 

	
            JPMORGAN CHASE BANK, N.A.,
 
	
            as Trustee
 	
             

 

 

By:               

	
            Authorized Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]