Document:

EX-4.5

 

Exhibit 4.5

Retail Ventures, Inc.

3241 Westerville Road

Columbus, Ohio 43224

July  , 2006

DSW Inc.

4150 East 5th Avenue

Columbus, Ohio 43219

EXCHANGE REQUEST

Ladies and Gentlemen:

          As you are aware, Retail Ventures, Inc., an Ohio corporation (“RVI”), has entered into the
Indenture, dated as of July    , 2006 (the “Indenture”), between RVI and HSBC Bank USA, National
Association, as trustee (the “Trustee,” which term shall include any successor trustee appointed
under the Indenture), in connection with the issuance and sale of
RVI’s    % Mandatorily
Exchangeable Notes Due
          , 2011
(the “PIESK”). Pursuant to the terms and conditions set
forth in the Indenture, the PIES are subject to exchange into Class A Common Shares, no par value
per share (the “Class A Common Shares”), of DSW Inc., an Ohio corporation (“DSW”), and RVI has
pledged        DSW Class B Common Shares, no par value per share (the “Class B Common
Shares”), to HSBC Bank USA, National Association, as collateral agent under the Collateral
Agreement, dated as of July    , 2006, among RVI, as pledgor, HSBC Bank USA, National Association,
as collateral agent, the Trustee and HSBC Bank USA, National Association, as securities
intermediary (the “Collateral Agreement”), to secure its obligations under the Indenture.
Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in
the Indenture.

          Pursuant to DSW’s Amended Articles of Incorporation and the Exchange Agreement, dated as of
July 5, 2005, by and between RVI and DSW (the “Exchange Agreement”), the Class B Common Shares are
exchangeable into an equal number of duly authorized, validly issued, fully paid and non-assessable
Class A Common Shares upon request of RVI.

          RVI hereby instructs DSW that, upon surrender by the Trustee, of the certificate or
certificates representing such Class B Common Shares to be exchanged, duly endorsed in blank, to
the Secretary of DSW, accompanied by notice from the Trustee, substantially in the form of Annex A
attached hereto (the “Notice”), DSW shall exchange the number of Class B Common Shares to be
indicated in the Notice (which number shall equal the Exchange Number unless RVI has previously
substituted Class A Common Shares for Class B Common Shares pursuant to Section 3.01(b) of the
Indenture and as provided in Section 6(b) of the Collateral Agreement, in which case the number
shall equal the Exchange Number less the number of

1

 

shares so substituted) for an equal number of Class A Common Shares. Such Class A Common
Shares shall be issued in the names indicated on such Notice.

          Such Notice shall be deemed to constitute an Exchange Request by RVI, as defined in Section I
of the Exchange Agreement.

          Pursuant to Section III of the Exchange Agreement, DSW shall issue certificates registered in
the name of RVI for the balance of any remaining Class B Common Shares if fewer than all of the
Class B Common Shares represented by the certificate or certificates surrendered by the Trustee, to
the Secretary of DSW are to be exchanged.

          Pursuant to Section III of the Exchange Agreement, the exercise of exchange rights shall be
deemed to have been effected immediately prior to the close of business on the day on which the
certificate or certificates representing the Class B Common Shares to be exchanged, accompanied by
the Notice, are surrendered to the Secretary of DSW and, to the extent permitted by law, at such
time the person or persons in whose name or names any certificate or certificates of Class A Common
Shares are to be issued shall be deemed to have become holder or holders of record thereof for all
purposes. As promptly as practicable after the surrender of the certificate or certificates
representing the Class B Common Shares, accompanied by the Notice, but in any event not later than
the second business day after the surrender of the certificate or certificates representing the
Class B Common Shares, accompanied by the Notice, DSW shall deliver or cause to be delivered to the
Trustee, a certificate or certificates for the number of whole Class A Common Shares issuable upon
the exchange of such Class B Common Shares and any cash adjustment in lieu of any fractional Class
A Common Share in an amount (computed to the nearest cent) equal to the value of such fractional
share based upon the current market price of Class A Common Shares and as provided in Section IV of
the Exchange Agreement.

          This request shall be irrevocable, until such time as RVI has provided to DSW a certificate of
(a) the Collateral Agent certifying that RVI has substituted a number of Class A Common Shares
equal to the Maximum Deliverable Number of Class A Common Shares for Class B Common Shares as
Collateral pursuant to Section 3.01(b) of the Indenture and as provided in Section 6(b) of the
Collateral Agreement or (b) the Trustee certifying that the Indenture has been satisfied and
discharged in accordance with Section 6.01 of the Indenture.

          Notwithstanding anything to the contrary contained in any provision herein, all provisions are
subject to the non-waivable rights of RVI and the duties of the Collateral Agent under the Uniform
Commercial Code (the “UCC”). All provisions are to be construed, interpreted and enforced in
accordance with the rights of RVI and the duties of the Collateral Agent under the UCC.

2

 

	 	 	 	 	 	 	 
	 	 	 	 	RETAIL VENTURES, INC.
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	ACKNOWLEDGED AND AGREED:	 	 	 	 
	 
	 	 	 	 	 	 
	DSW INC.	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 

3

 

Annex A

HSBC Bank USA, National Association*

452 Fifth Avenue

New York, NY 10018

[Date]

DSW Inc.

4150 East 5th Avenue

Columbus, Ohio 43219

Ladies and Gentleman:

          HSBC Bank USA, National Association*, the trustee (the “Trustee”) under the
Indenture, dated as of      , 2006 (the “Indenture”), between Retail Ventures, Inc., an
Ohio corporation (“RVI”) and Trustee, acting pursuant to the Indenture and in the absence of any
written notice by RVI that it will settle its      % Mandatorily Exchangeable Notes Due      ,
2011 (the “PIES”) in cash pursuant to Section 3.03(a) of the Indenture, hereby directs you, DSW
Inc., an Ohio corporation (“DSW”), in accordance with the Exchange Request made by RVI to DSW,
dated July  , 2006 (“the “Exchange Request”), to exchange ______Class B Common Shares,
no par value per share, of DSW (the “Class B Common Shares”) for an equal number of duly
authorized, validly issued, fully paid and non-assessable Class A Common Shares, no par value per
share, of DSW (the “Class A Common Shares”) in connection with the exchange of $______
aggregate principal amount of PIES into Class A Common Shares pursuant to the Indenture. The Class
A Common Shares shall be issued in the name or names indicated on Schedule I to this notice.

          The certificate or certificates representing such Class B Common Shares to be exchanged, duly
endorsed in blank, are attached to this notice and, pursuant to the Exchange Request, shall be
deemed to be surrendered to the Secretary of DSW upon receipt.

          Pursuant to the Exchange Request, DSW shall issue certificates registered in the name of RVI
for the balance of any remaining Class B Common Shares if fewer than all the Class B Common Shares
represented by the certificate or certificates surrendered hereby are to be exchanged.

          Pursuant to the Exchange Request and Section III of the Exchange Agreement, dated as of July
5, 2005, by and between RVI and DSW (the “Exchange Agreement”), this exercise of exchange rights
shall be deemed to have been effected immediately prior to the close of business on the day on
which this notice and surrender to the Secretary of DSW of the certificate or certificates
representing the Class B Common Shares to be exchanged and, to the

 

			
	*	 	Name and address to be changed if a successor Trustee is appointed under the Indenture.
	 
	*	 	Name to be changed if a successor Trustee is appointed under the Indenture.

4

 

extent permitted by law, at such time the person or persons in whose name or names any
certificate or certificates of Class A Common Shares are to be issued shall be deemed to have
become holder or holders of record thereof for all purposes. As promptly as practicable after this
notice and surrender of Class B Common Shares, but in any event not later than the second business
day after this notice and surrender of Class B Common Shares, DSW shall deliver or cause to be
delivered to the Trustee, a certificate or certificates for the number of whole Class A Common
Shares issuable upon the exchange of such Class B Common Shares and any cash adjustment in lieu of
any fractional Class A Common Share in an amount (computed to the nearest cent) equal to the value
of such fractional share based upon the current market price of Class A Common Shares and as
provided in Section IV of the Exchange Agreement.

	 	 	 	 	 
	 	 	HSBC BANK USA, NATIONAL

ASSOCIATION*
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

 

			
	*	 	Name to be changed if a successor Trustee is appointed under the Indenture.

5

 

SCHEDULE I

	 	 	 
	Number of Class A Common Shares of DSW
	 	Name
	 
	 	 

6EX-4.7

 

EXHIBIT 4.7

Metal Storm Limited

David A Smith

Deed of Termination

© Corrs Chambers Westgarth

 

 

Contents

	 	 	 	 	 	 	 
	1

	 	Interpretation
	 	 	1	 
	 
	 	 	 	 	 	 
	 

	 	1.1 Definitions
	 	 	1	 
	 

	 	1.2 Construction
	 	 	2	 
	 
	 	 	 	 	 	 
	2

	 	Payments and benefits
	 	 	2	 
	 
	 	 	 	 	 	 
	 

	 	2.1 Payments and benefits
	 	 	2	 
	 

	 	2.2 How payments effected
	 	 	3	 
	 

	 	2.3 Acknowledgement options already received
	 	 	3	 
	 
	 	 	 	 	 	 
	3

	 	Release
	 	 	3	 
	 
	 	 	 	 	 	 
	 

	 	3.1 Release
	 	 	3	 
	 

	 	3.2 Bar to proceedings
	 	 	3	 
	 
	 	 	 	 	 	 
	4

	 	Enforceability
	 	 	3	 
	 
	 	 	 	 	 	 
	5

	 	Confidential information and non-disclosure
	 	 	4	 
	 
	 	 	 	 	 	 
	 

	 	5.1 Confidentiality
	 	 	4	 
	 

	 	5.2 Non-disclosure
	 	 	4	 
	 
	 	 	 	 	 	 
	6

	 	Non-disparagement
	 	 	4	 
	 
	 	 	 	 	 	 
	 

	 	6.1 No disparagement by Executive
	 	 	4	 
	 

	 	6.2 No disparagement by Company
	 	 	4	 
	 
	 	 	 	 	 	 
	7

	 	Warranty and acknowledgment
	 	 	4	 
	 
	 	 	 	 	 	 
	 

	 	7.1 Entry into this document
	 	 	4	 
	 

	 	7.2 Warranty as to reliance
	 	 	5	 
	 
	 	 	 	 	 	 
	8

	 	Miscellaneous
	 	 	5	 
	 
	 	 	 	 	 	 
	 

	 	8.1 Governing law and jurisdiction
	 	 	5	 
	 

	 	8.2 Counterparts
	 	 	5	 
	 

	 	8.3 Effect of execution
	 	 	5	 
	 

	 	8.4 Waiver and exercise of rights
	 	 	5	 
	 

	 	8.5 Entire understanding
	 	 	5	 

 

 

Date 20 May 2006

Parties

Metal Storm Limited ACN 064 270 006 of Level 34 Central Plaza One, 345 Queen
Street, Brisbane, Queensland 4000 (Company)

David A Smith of 9619 Potters Hill Circle, Lorton, VA 22079 (Executive)

Background

	A	 	The Executive was employed by the Company from 14 February 2005 as Chief Executive Officer (Employment).
	 
	B	 	The Company and Executive have agreed that the Employment will be terminated as at 28 April 2006 on the terms set out in this
document (Termination).

Agreed terms

	1	 	Interpretation

	1.1	 	Definitions
	 
	 	 	In this document:
	 
	 	 	Associated Persons means each of the past and present directors, officers, employees and
agents of the Company or a Related Company.
	 
	 	 	Claims means all claims, demands, suits, causes of action, damages, debts, costs,
verdicts and judgments whatsoever whether at law or in equity or under any statute
including (but not limited to) all claims under any industrial relations legislation,
anti-discrimination legislation, industrial instruments and contracts of employment
including claims for unpaid wages or leave entitlements and claims for unfair or unlawful
termination, but does not include any claims in respect of which the Company receives an
indemnity under the Workers Compensation and Rehabilitation Act 2003 (Qld).
	 
	 	 	Confidential Information means any information, however communicated or recorded,
relating to the Company’s business to which the Executive gains access, whether before,
during or after the Employment and includes but is not limited to:

page 1

 

	 	(a)	 	any trade secret or other commercially sensitive or confidential
information of or possessed by the Company;
	 
	 	(b)	 	any techniques, methods, computer software, materials, documents or
manuals of the Company used in its business;
	 
	 	(c)	 	technical information or research concerning products developed or used
by the Company, its customers and suppliers;
	 
	 	(d)	 	inventions, improvements or products discovered or developed by any
employee, officer or consultant of the Company;
	 
	 	(e)	 	any information relating to the business affairs, accounts, market
research, marketing plans, sales plans, customer lists, prospects, management or
finances of the Company; and
	 
	 	(f)	 	the identity of the Company’s customers, suppliers, consultants,
distributors, agents, contractors and employees and the arrangements between the
Company and its customers, suppliers, consultants, distributors, agents, contractors
and employees.

	 	 	Related Company means a related body corporate of the Company as defined in the
Corporations Act 2001 (Cth) and includes Metal Storm, Inc and Metal Storm USA Limited.
	 
	1.2	 	Construction
	 
	 	 	A reference to “$” or “dollars” is a reference to United States currency.

	2	 	Payments and benefits

	2.1	 	Payments and benefits
	 
	 	 	In consideration of the release provided in this document and the Executive at all
times complying with all terms of this document, the Company:

	 	(a)	 	will pay to the Executive:

	 	(i)	 	$120,000 (subject to deduction of any tax, including any
United States tax) as a separation payment;
	 
	 	(ii)	 	$60,000 (subject to deduction of any tax including any
United States tax) as payment in lieu of notice of termination ; and
	 
	 	(iii)	 	$2,000 in lieu of payment for medical insurance premiums
for a period of three months;

	 	(b)	 	will provide to the Executive access to his existing cellular telephone
account and meet the cost of all rental and charges incurred on that account for a
period of 60 days from the date the Deed is signed by the Executive and returned to
the Company; and
	 
	 	(c)	 	has issued 625,000 options over unissued shares in the Company
exercisable at $0.40 per option for an exercise period ending on 30 June 2011.

page 2

 

	2.2	 	How payments effected
	 
	 	 	Payments required by clause 2.1 will be paid as follows:

	 	(a)	 	for the payments referred to in clauses 2.1(a)(i) and 2.1(a)(ii), to the
Executive’s bank account in the following instalments:

	 	(i)	 	$60,000, within 15 days of the date the Deed is signed by
the Executive and returned to the Company;
	 
	 	(ii)	 	$60,000, within 60 days of the date the Deed is signed by
the Executive and returned to the Company; and
	 
	 	(iii)	 	$60,000, within 90 days of the date the Deed is signed by
the Executive and returned to the Company;

	 	(b)	 	for the payments referred to in clause 2.1(a)(iii), to the Executive’s
bank account within 15 days of the date the Deed is signed by the Executive and
returned to the Company;
	 
	 	(c)	 	for payments referred to in clause 2.1(b), by way of cheque to the
supplier of the benefit, within seven days after receipt of the appropriate
invoices/statements being provided by the Executive to the Company’s satisfaction.

	2.3	 	Acknowledgement options already received
	 
	 	 	The Executive acknowledges that he has already received the options referred to in
clause 2.1(c).

	3	 	Release

	3.1	 	Release
	 
	 	 	In consideration of the receipt of the benefits provided under clause 2.1, the
Executive, to the greatest extent permitted by law, releases, discharges and indemnifies
the Company, each Related Company and each Associated Person from all Claims which he has
or which but for this Deed could, would or might at any time hereafter have or have had
against the Company, each Related Company and each Associated Person in respect of or
arising out of, either directly or indirectly, the Employment or the Termination.
	 
	3.2	 	Bar to proceedings
	 
	 	 	The Executive agrees that the release in this Deed may be pleaded by the Company,
each Related Company and each Associated Person as an absolute bar to proceedings in any
court of law, arbitral tribunal or otherwise in response to any Claims brought by or on
behalf of the Executive which are the subject of a release contained in this Deed.

	4	 	Enforceability

The Executive agrees that the terms of this Deed may be enforced by the Company on
its own behalf and on behalf of any Related Company or

page 3

 

Associated Person, or enforced by any Related Company or Associated Person individually.

	5	 	Confidential information and non-disclosure

	5.1	 	Confidentiality
	 
	 	 	The Executive covenants with the Company:

	 	(a)	 	not to disclose any Confidential Information to any other person;
	 
	 	(b)	 	not to use any Confidential Information for the benefit of the Executive
or of any other person;

without the prior consent in writing of the Company, except that this obligation will
cease in respect of any information which becomes generally available to the public other
than through any unlawful act of the Executive.

	5.2	 	Non-disclosure
	 
	 	 	The Executive agrees that he will not disclose the terms of this document to any
person other than:

	 	(a)	 	in confidence, to his respective legal or financial advisers;
	 
	 	(b)	 	for the proper purposes of enforcing the terms of this document; or
	 
	 	(c)	 	as may be required by law.

	6	 	Non-disparagement

	6.1	 	No disparagement by Executive
	 
	 	 	The Executive will not at any time after executing this document, disparage the
Company, a Related Company or an Associated Person or make any statement or publication,
whether oral or in writing, which does or is likely to bring the Company into disrepute
or ridicule or otherwise adversely affect its reputation.
	 
	6.2	 	No disparagement by Company
	 
	 	 	The Company will not at any time after executing this document disparage the
Executive or make any statement or publication, whether oral or in writing, which does or
is likely to bring the Executive into disrepute or ridicule or otherwise adversely affect
the Executive’s reputation.

	7	 	Warranty and acknowledgment

	7.1	 	Entry into this document
	 
	 	 	The Executive:

	 	(a)	 	has voluntarily entered into this document;

page 4

 

	 	(b)	 	in entering into this document, has not relied on any promises,
representations or inducements other than those set out in this document; and
	 
	 	(c)	 	has had opportunity to consult with advisers as to the nature and effect
of this document.

	7.2	 	Warranty as to reliance
	 
	 	 	The Executive warrants the accuracy of clause 7.1 and acknowledges that the
Company is relying upon this warranty in executing this document.

	8	 	Miscellaneous

	8.1	 	Governing law and jurisdiction

	 	(a)	 	This document is governed by and is to be construed in accordance with the
laws applicable in Queensland.
	 
	 	(b)	 	Each party irrevocably and unconditionally submits to the non-exclusive
jurisdiction of the courts of Queensland and any courts which have jurisdiction to
hear appeals from any of those courts and waives any right to object to any
proceedings being brought in those courts.

	8.2	 	Counterparts
	 
	 	 	This document may consist of a number of counterparts and, if so, the counterparts
taken together constitute one document.
	 
	8.3	 	Effect of execution
	 
	 	 	This document is not binding on either party unless it has been executed by both
parties.
	 
	8.4	 	Waiver and exercise of rights

	 	(a)	 	A single or partial exercise or waiver by a party of a right relating to this
document does not prevent any other exercise of that right or the exercise of any
other right.
	 
	 	(b)	 	A party is not liable for any loss, cost or expense of any other party
caused or contributed to by the waiver, exercise, attempted exercise, failure to
exercise or delay in exercise of a right.

	8.5	 	Entire understanding

	 	(a)	 	This document contains the entire understanding between the parties as to the
subject matter of this document.
	 
	 	(b)	 	All previous negotiations, understandings, representations, warranties,
memoranda or commitments concerning the subject matter of this document are merged
in and superseded by this document and are of no effect. No party is liable to any
other party in respect of those matters.
	 
	 	(c)	 	No oral explanation or information provided by any party to another:

	 	(i)	 	affects the meaning or interpretation of this document; or

page 5

 

	 	(ii)	 	constitutes any collateral agreement, warranty or
understanding between any of the parties.

page 6

 

Executed as a deed.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Executed by Metal Storm Limited

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	 	 	 
	/s/ JAMES D. MACDONALD

	 	 	 	 	 	/s/ WAYNE A. DOWNING	 	 
	 	 	 	 	 	 	 	 	 
	Company Secretary

	 	 	 	 	 	Director	 	 
	 
	 	 	 	 	 	 	 	 
	James D. MacDonald

	 	 	 	 	 	Wayne A. Downing	 	 
	Name of Company Secretary/Director (print)

	 	 	 	 	 	Name of Director (print)	 	 
	 
	 	 	 	 	 	 	 	 
	Signed sealed and delivered

	 	 	)	 	 	 	 	 
	by David A Smith in the presence of:

	 	 	)	 	 	/s/ DAVID A. SMITH	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ KATHLEEN M. MAY
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Witness
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Kathleen M. May
	 	 	 	 	 	 	 	 
	Name of Witness (print)
	 	 	 	 	 	 	 	 

page 7

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