Document:

EX-10.2

Exhibit 10.2

 

PARENT GUARANTEE AGREEMENT

made by

LORAL SPACE & COMMUNICATIONS INC.

in favor of

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

Dated as of October 22, 2008

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	SECTION 1. DEFINED TERMS
	 	 	1	 
	 
	 	 	 	 
	1.1 Definitions
	 	 	1	 
	1.2 Other Definitional Provisions
	 	 	2	 
	 
	 	 	 	 
	SECTION 2. GUARANTEE
	 	 	2	 
	 
	 	 	 	 
	2.1 Guarantee
	 	 	2	 
	2.2 No Subrogation
	 	 	3	 
	2.3 Amendments, etc. with respect to the Borrower Obligations
	 	 	3	 
	2.4 Guarantee Absolute and Unconditional
	 	 	3	 
	2.5 Reinstatement
	 	 	4	 
	2.6 Payments
	 	 	4	 
	 
	 	 	 	 
	SECTION 3. REPRESENTATIONS AND WARRANTIES
	 	 	5	 
	 
	 	 	 	 
	3.1 Due Organization
	 	 	5	 
	3.2 Due Authorization; Enforceability
	 	 	5	 
	3.3 No Conflicts
	 	 	5	 
	3.4 No Litigation
	 	 	5	 
	 
	 	 	 	 
	SECTION 4. THE ADMINISTRATIVE AGENT
	 	 	5	 
	 
	 	 	 	 
	4.1 Administrative Agent’s Appointment as Attorney-in-Fact, etc
	 	 	5	 
	 
	 	 	 	 
	SECTION 5. MISCELLANEOUS
	 	 	6	 
	 
	 	 	 	 
	5.1 Amendments in Writing
	 	 	6	 
	5.2 Notices
	 	 	6	 
	5.3 No Waiver by Course of Conduct; Cumulative Remedies
	 	 	6	 
	5.4 Enforcement Expenses; Indemnification
	 	 	6	 
	5.5 Successors and Assigns
	 	 	7	 
	5.6 Set-Off
	 	 	7	 
	5.7 Severability
	 	 	7	 
	5.8 Section Headings
	 	 	7	 
	5.9 GOVERNING LAW
	 	 	7	 
	5.10 Submission To Jurisdiction; Waivers
	 	 	7	 
	5.11 Acknowledgements
	 	 	8	 
	5.12 WAIVER OF JURY TRIAL
	 	 	8	 
	5.13 Covenant
	 	 	8	 

 

 

PARENT GUARANTEE AGREEMENT

          
PARENT GUARANTEE AGREEMENT, dated as of October 22, 2008, made by LORAL SPACE & COMMUNICATIONS
INC. (the “Guarantor”), in favor of JPMORGAN CHASE BANK, N.A., as Administrative Agent (in
such capacity, the “Administrative Agent”) for the banks and other financial institutions
or entities (the “Lenders”) from time to time parties to the Credit Agreement, dated as of
October 16, 2008 (as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among SPACE SYSTEMS/LORAL, INC. (the “Borrower”), the Lenders and the
Administrative Agent.

W I T N E S S E T H:

          WHEREAS, pursuant to the Credit Agreement, the Lenders have severally agreed to make
extensions of credit to the Borrower upon the terms and subject to the conditions set forth
therein;

          WHEREAS, the Borrower is a member of an affiliated group of companies that includes the
Guarantor;

          WHEREAS, the Borrower and the Guarantor are engaged in related businesses, and the Guarantor
will derive substantial direct and indirect benefit from the making of the extensions of credit
under the Credit Agreement; and

          WHEREAS, it is a condition precedent to the obligation of the Lenders to make their respective
extensions of credit to the Borrower under the Credit Agreement that the Guarantor shall have
executed and delivered this Agreement to the Administrative Agent for the ratable benefit of the
Lenders;

          NOW, THEREFORE, in consideration of the premises and to induce the Administrative Agent and
the Lenders to enter into the Credit Agreement and to induce the Lenders to make their respective
extensions of credit to the Borrower thereunder, the Guarantor hereby agrees with the
Administrative Agent, for the ratable benefit of the Lenders, as follows:

SECTION 1.

DEFINED TERMS

     1.1 Definitions. (a) Unless otherwise defined herein, terms defined in the Credit
Agreement and used herein shall have the meanings given to them in the Credit Agreement.

     (b) The following terms shall have the following meanings:

          “Agreement”: this Parent Guarantee Agreement, as the same may be amended,
supplemented or otherwise modified from time to time.

          “Borrower Obligations”: the collective reference to the unpaid principal of and
interest on the Loans and Reimbursement Obligations and all other monetary obligations and
liabilities of the Borrower (including, without limitation, interest accruing at the then
applicable

 

 

rate provided in the Credit Agreement after the maturity of the Loans and Reimbursement
Obligations and interest accruing at the then applicable rate provided in the Credit Agreement
after the filing of any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding, relating to the Borrower, whether or not a claim for post-filing
or post-petition interest is allowed in such proceeding) to the Administrative Agent or any Lender
(or, in the case of any Specified Swap Agreement and any Specified Cash Management Agreement, any
Affiliate of any Lender), whether direct or indirect, absolute or contingent, due or to become due,
or now existing or hereafter incurred, which may arise under, out of, or in connection with, the
Credit Agreement, this Agreement, the other Credit Documents, any Letter of Credit, any Specified
Swap Agreement, any Specified Cash Management Agreement or any other document made, delivered or
given in connection with any of the foregoing (collectively, the “Transaction Documents”), in each
case whether on account of principal, interest, reimbursement obligations, fees, indemnities,
costs, expenses or otherwise (including, without limitation, all fees and disbursements of counsel
to the Administrative Agent or to the Lenders that are required to be paid by the Borrower pursuant
to the terms of any of the foregoing agreements). Notwithstanding anything herein to the contrary,
“Borrower Obligations” shall not include (i) any non-monetary obligations of the Borrower or any
Loan Party or (ii) any obligations (monetary or otherwise) of the Borrower other than pursuant to
the Transaction Documents.

     1.2 Other Definitional Provisions. (a) The words “hereof,” “herein”, “hereto” and
“hereunder” and words of similar import when used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this Agreement, and Section references are to
this Agreement unless otherwise specified.

     (b) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

SECTION 2.

GUARANTEE

     2.1 Guarantee. (a) The Guarantor hereby, unconditionally and irrevocably, guarantees
to the Administrative Agent, for the ratable benefit of the Lenders and their respective
successors, indorsees, transferees and assigns, the prompt and complete payment and performance by
the Borrower when due (whether at the stated maturity, by acceleration or otherwise) of the
Borrower Obligations.

     (b) The guarantee contained in this Section 2 shall remain in full force and effect until all
the Borrower Obligations and the obligations of the Guarantor under the guarantee contained in this
Section 2 shall have been satisfied by payment in full, no Letter of Credit shall be outstanding
that is not back stopped to the satisfaction of the Administrative Agent and the Commitments shall
be terminated, notwithstanding that from time to time during the term of the Credit Agreement the
Borrower may be free from any Borrower Obligations.

     (c) No payment made by the Borrower, the Guarantor, any other guarantor or any other Person or
received or collected by the Administrative Agent or any Lender from the

2

 

Borrower, the Guarantor, any other guarantor or any other Person by virtue of any action or
proceeding or any set-off or appropriation or application at any time or from time to time in
reduction of or in payment of the Borrower Obligations shall be deemed to modify, reduce, release
or otherwise affect the liability of the Guarantor hereunder which shall, notwithstanding any such
payment (other than any payment made by the Guarantor in respect of the Borrower Obligations or any
payment received or collected from the Guarantor in respect of the Borrower Obligations), remain
liable for the Borrower Obligations up to the maximum liability of the Guarantor hereunder until
the Borrower Obligations are paid in full, no Letter of Credit shall be outstanding that is not
back stopped to the satisfaction of the Administrative Agent and the Commitments are terminated.

     2.2 No Subrogation. Notwithstanding any payment made by the Guarantor hereunder or
any set-off or application of funds of the Guarantor by the Administrative Agent or any Lender, the
Guarantor shall not be entitled to be subrogated to any of the rights of the Administrative Agent
or any Lender against the Borrower or any collateral security or guarantee or right of offset held
by the Administrative Agent or any Lender for the payment of the Borrower Obligations, nor shall
the Guarantor seek or be entitled to seek any contribution or reimbursement from the Borrower in
respect of payments made hereunder, until all amounts owing to the Administrative Agent and the
Lenders by the Borrower on account of the Borrower Obligations are paid in full, no Letter of
Credit shall be outstanding that is not back stopped to the satisfaction of the Administrative
Agent and the Commitments are terminated.

     2.3 Amendments, etc. with respect to the Borrower Obligations. The
Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights
against the Guarantor, and without notice to or further assent by the Guarantor, any demand for
payment of any of the Borrower Obligations made by the Administrative Agent or any Lender may be
rescinded by the Administrative Agent or such Lender and any of the Borrower Obligations continued,
and the Borrower Obligations, or the liability of any other Person upon or for any part thereof, or
any collateral security or guarantee therefor or right of offset with respect thereto, may, from
time to time, in whole or in part, be renewed, extended, amended, modified, accelerated,
compromised, waived, surrendered or released by the Administrative Agent or any Lender, and the
Credit Agreement and the other Credit Documents and any other documents executed and delivered in
connection therewith may be amended, modified, supplemented or terminated, in whole or in part, as
the Administrative Agent (or the Required Lenders or all Lenders, as the case may be) may deem
advisable from time to time, and any collateral security, guarantee or right of offset at any time
held by the Administrative Agent or any Lender for the payment of the Borrower Obligations may be
sold, exchanged, waived, surrendered or released in accordance with the Credit Agreement and the
other Credit Documents. Neither the Administrative Agent nor any Lender shall have any obligation
to protect, secure, perfect or insure any Lien at any time held by it as security for the Borrower
Obligations or held by it after the date hereof as security for the guarantee contained in this
Section 2 or any property subject thereto.

     2.4 Guarantee Absolute and Unconditional. The Guarantor waives any and all notice of
the creation, renewal, extension or accrual of any of the Borrower Obligations and notice of or
proof of reliance by the Administrative Agent or any Lender upon the guarantee contained in this
Section 2 or acceptance of the guarantee contained in this Section 2; the Borrower Obligations,

3

 

and any of them, shall conclusively be deemed to have been created, contracted or incurred, or
renewed, extended, amended or waived, in reliance upon the guarantee contained in this Section 2;
and all dealings between the Borrower and the Guarantor, on the one hand, and the Administrative
Agent and the Lenders, on the other hand, likewise shall be conclusively presumed to have been had
or consummated in reliance upon the guarantee contained in this Section 2. The Guarantor waives
diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon
the Borrower or the Guarantor with respect to the Borrower Obligations other than such demands and
notices as are required to be provided under the Credit Agreement. The Guarantor understands and
agrees that the guarantee contained in this Section 2 shall be construed as a continuing, absolute
and unconditional guarantee of payment without regard to (a) the validity or enforceability of the
Credit Agreement or any other Credit Document, any of the Borrower Obligations or any other
collateral security therefor or guarantee or right of offset with respect thereto at any time or
from time to time held by the Administrative Agent or any Lender, (b) any defense, set-off or
counterclaim (other than a defense of payment or performance) which may at any time be available to
or be asserted by the Borrower or any other Person against the Administrative Agent or any Lender,
or (c) any other circumstance whatsoever (with or without notice to or knowledge of the Borrower or
the Guarantor), other than a defense of payment or performance, which constitutes, or might be
construed to constitute, an equitable or legal discharge of the Borrower for the Borrower
Obligations, or of the Guarantor under the guarantee contained in this Section 2, in bankruptcy or
in any other instance. When making any demand hereunder or otherwise pursuing its rights and
remedies hereunder against the Guarantor, the Administrative Agent or any Lender may, but shall be
under no obligation to, make a similar demand on or otherwise pursue such rights and remedies as it
may have against the Borrower or any other Person or against any collateral security or guarantee
for the Borrower Obligations or any right of offset with respect thereto, and any failure by the
Administrative Agent or any Lender to make any such demand, to pursue such other rights or remedies
or to collect any payments from the Borrower or any other Person or to realize upon any such
collateral security or guarantee or to exercise any such right of offset, or any release of the
Borrower or any other Person or any such collateral security, guarantee or right of offset, shall
not relieve the Guarantor of any obligation or liability hereunder, and shall not impair or affect
the rights and remedies, whether express, implied or available as a matter of law, of the
Administrative Agent or any Lender against the Guarantor. For the purposes hereof “demand” shall
include the commencement and continuance of any legal proceedings.

     2.5 Reinstatement. The guarantee contained in this Section 2 shall continue to be
effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of
any of the Borrower Obligations is rescinded or must otherwise be restored or returned by the
Administrative Agent or any Lender upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of the Borrower or the Guarantor, or upon or as a result of the appointment of a
receiver, intervenor or conservator of, or trustee or similar officer for, the Borrower or the
Guarantor or any substantial part of its property, or otherwise, all as though such payments had
not been made.

     2.6 Payments. The Guarantor hereby guarantees that payments hereunder will be paid to
the Administrative Agent without set-off or counterclaim in Dollars at the Funding Office.

4

 

SECTION 3.

REPRESENTATIONS AND WARRANTIES

          To induce the Administrative Agent and the Lenders to enter into the Credit Agreement and to
induce the Lenders to make their respective extensions of credit to the Borrower thereunder, the
Guarantor hereby represents and warrants to the Administrative Agent and each Lender that:

     3.1 Due Organization. The Guarantor is a corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware and has the corporate power and
authority, and the legal right, to make, deliver and perform this Agreement.

     3.2 Due Authorization; Enforceability. The Guarantor has the corporate power and
authority, and the legal right, to make, deliver and perform this Agreement and has taken all
necessary corporate or other organizational action to authorize the execution, delivery and
performance of this Agreement. No consent or authorization of, filing with, notice to or other act
by or in respect of, any Governmental Authority or any other Person is required in connection with
the execution, delivery, performance, validity or enforceability of this Agreement except such
consents, authorizations, filings and notices which have been obtained or made prior to the date
hereof and are in full force and effect. This Agreement has been duly executed and delivered on
behalf of the Guarantor. This Agreement constitutes, a legal, valid and binding obligation of the
Guarantor enforceable against the Guarantor in accordance with its terms, subject to the effects of
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws
relating to or affecting creditors’ rights generally, general equitable principles (whether
considered in a proceeding in equity or at law) and an implied covenant of good faith and fair
dealing.

     3.3 No Conflicts. The execution, delivery and performance of this Agreement will not
violate any Requirement of Law or effective Contractual Obligation of the Guarantor or of any of
its Subsidiaries and will not result in, or require, the creation or imposition of any other Lien
on the Pledged Stock.

     3.4 No Litigation. No litigation, investigation or proceeding of or before any
arbitrator or Governmental Authority is pending or, to the knowledge of the Guarantor, threatened
by or against the Guarantor or any of its Subsidiaries or against any of its or their respective
properties or revenues with respect to this Agreement or any of the transactions contemplated
hereby.

SECTION 4.

THE ADMINISTRATIVE AGENT

     4.1 Administrative Agent’s Appointment as Attorney-in-Fact, etc. The
Guarantor acknowledges that the rights and responsibilities of the Administrative Agent under this
Guarantee with respect to any action taken by the Administrative Agent or the exercise or
non-exercise by the Administrative Agent of any option, right, request, judgment or other right or

5

 

remedy provided for herein or resulting or arising out of this Guarantee shall, as between the
Administrative Agent and the Lenders, be governed by the Credit Agreement and by such other
agreements with respect thereto as may exist from time to time among them, but, as between the
Administrative Agent and the Guarantor, the Administrative Agent shall be conclusively presumed to
be acting as Administrative Agent for the Lenders with full and valid authority so to act or
refrain from acting, and the Guarantor shall not be under any obligation, or entitlement, to make
any inquiry respecting such authority.

SECTION 5.

MISCELLANEOUS

     5.1 Amendments in Writing. None of the terms or provisions of this Agreement may be
waived, amended, supplemented or otherwise modified except in accordance with Section 10.1 of the
Credit Agreement.

     5.2 Notices. All notices, requests and demands to or upon the Administrative Agent or
the Guarantor hereunder shall be effected in the manner provided for in Section 10.2 of the Credit
Agreement; provided that any such notice, request or demand to or upon the Guarantor shall be
addressed to it at 600 Third Avenue, New York, New York 10016, Attention: Richard P. Mastoloni,
with a copy to Avi Katz, Esq.

     5.3 No Waiver by Course of Conduct; Cumulative Remedies. Neither the Administrative
Agent nor any Lender shall by any act (except by a written instrument pursuant to Section 5.1),
delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or
to have acquiesced in any Default or Event of Default. No failure to exercise, nor any delay in
exercising, on the part of the Administrative Agent or any Lender, any right, power or privilege
hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power or
privilege hereunder shall preclude any other or further exercise thereof or the exercise of any
other right, power or privilege. A waiver by the Administrative Agent or any Lender of any right
or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy
which the Administrative Agent or such Lender would otherwise have on any future occasion. The
rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are
not exclusive of any other rights or remedies provided by law.

     5.4 Enforcement Expenses; Indemnification. (a) The Guarantor agrees to pay or
reimburse each Lender and the Administrative Agent for all its reasonable costs and expenses
incurred in collecting against the Guarantor under the guarantee contained in Section 2 or
otherwise enforcing or preserving any rights under this Agreement, including, without limitation,
the fees and disbursements of counsel (including the allocated fees and expenses of in-house
counsel to the extent such counsel performs services that would otherwise be performed by outside
counsel) to each Lender and of counsel to the Administrative Agent.

     (b) The Guarantor agrees to pay, and to save the Administrative Agent and the Lenders harmless
from, any and all liabilities with respect to, or resulting from any delay in paying, any and all
stamp, excise, sales or other taxes which may be payable or determined to be payable in connection
with this Agreement.

6

 

     (c) The Guarantor agrees to pay, and to save the Administrative Agent and the Lenders harmless
from, any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution,
delivery, enforcement, performance and administration of this Agreement to the extent the Borrower
would be required to do so pursuant to Section 10.5 of the Credit Agreement.

     5.5 Successors and Assigns. This Agreement shall be binding upon the successors and
assigns of the Guarantor and shall inure to the benefit of the Administrative Agent and the Lenders
and their permitted successors and assigns; provided that the Guarantor may not assign, transfer or
delegate any of its rights or obligations under this Agreement without the prior written consent of
the Administrative Agent.

     5.6 Set-Off. In addition to any rights and remedies of the Lenders provided by law,
each Lender shall have the right, without notice to the Guarantor, any such notice being expressly
waived by the Guarantor to the extent permitted by applicable law, upon any Obligations becoming
due and payable by the Guarantor (whether at the stated maturity, by acceleration or otherwise), to
apply to the payment of such Obligations, by setoff or otherwise, any and all deposits (general or
special, time or demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or
contingent, matured or unmatured, at any time held or owing by such Lender, any affiliate thereof
or any of their respective branches or agencies to or for the credit or the account of the
Guarantor. Each Lender agrees promptly to notify the Guarantor and the Administrative Agent after
any such application made by such Lender, provided that the failure to give such notice
shall not affect the validity of such application.

     5.7 Severability. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     5.8 Section Headings. The Section headings used in this Agreement are for convenience
of reference only and are not to affect the construction hereof or be taken into consideration in
the interpretation hereof.

     5.9 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

     5.10 Submission To Jurisdiction; Waivers. The Guarantor hereby irrevocably and
unconditionally:

     (a) submits for itself and its property in any legal action or proceeding relating to this
Agreement, or for recognition and enforcement of any judgment in respect thereof, to the
non-exclusive general jurisdiction of the courts of the State of New York, the courts of the United
States of America for the Southern District of New York, and appellate courts from any thereof;

7

 

     (b) consents that any such action or proceeding may be brought in such courts and waives any
objection that it may now or hereafter have to the venue of any such action or proceeding in any
such court or that such action or proceeding was brought in an inconvenient court and agrees not to
plead or claim the same;

     (c) agrees that service of process in any such action or proceeding may be effected by mailing
a copy thereof by registered or certified mail (or any substantially similar form of mail), postage
prepaid, to the Guarantor at its address referred to in Section 5.2 or at such other address of
which the Administrative Agent shall have been notified pursuant thereto;

     (d) agrees that nothing herein shall affect the right to effect service of process in any
other manner permitted by law or shall limit the right to sue in any other jurisdiction; and

     (e) waives, to the maximum extent not prohibited by law, any right it may have to claim or
recover in any legal action or proceeding referred to in this Section any special, exemplary,
punitive or consequential damages.

     5.11 Acknowledgements. The Guarantor hereby acknowledges that:

     (a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement;

     (b) neither the Administrative Agent nor any Lender has any fiduciary relationship with or
duty to the Guarantor arising out of or in connection with this Agreement, and the relationship
between the Guarantor, on the one hand, and the Administrative Agent and Lenders, on the other
hand, in connection herewith or therewith is solely that of debtor and creditor; and

     (c) no joint venture is created hereby or otherwise exists by virtue of the transactions
contemplated hereby among the Lenders or among the Guarantor and the Lenders.

     5.12 WAIVER OF JURY TRIAL. THE GUARANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER
CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

     5.13 Covenant. The Guarantor hereby agrees that, so long as the Commitments remain in
effect, any Letter of Credit remains outstanding that is not back stopped to the satisfaction of
the Administrative Agent or any Loan or other amount is owing to any Lender or the Administrative
Agent hereunder, in the event of the Disposition by it or any of its Subsidiaries of any Capital
Stock owned by them of Telesat Holdings Inc. (including pursuant to an initial public offering of
the Capital Stock of Telesat Holdings Inc.) the Guarantor and its Subsidiaries shall not, without
the prior written consent of each Lender and the Administrative Agent, apply the net proceeds of
such Disposition (the “Proceeds”) to pay any dividend or other distribution to the
stockholders of the Guarantor in an amount greater than the greater
of (i) 66
2/3% of the
Proceeds and (ii) the amount by which the Proceeds exceed S200,000,000.

8

 

     IN WITNESS WHEREOF, the undersigned has caused this Guarantee Agreement to be duly executed
and delivered as of the date first above written.

	 	 	 	 	 
	 	LORAL SPACE &
COMMUNICATIONS INC.

 	 
	 	By:  	/s/ Richard Mastoloni	 
	 	 	Name:  	Richard Mastoloni 	 
	 	 	Title:  	Senior Vice President and Treasurer 	 
	 

[Parent Guarantee]exv4w1

Exhibit 4.1

Amended and Restated

Articles of Incorporation

of

H & R Block, Inc.

     The undersigned, being an officer of H & R Block, Inc., does hereby certify that the following
Amended and Restated Articles of Incorporation have been approved by the corporation in accordance
with Section 351.106 of the General and Business Corporation Law of Missouri. The undersigned
hereby further certifies that the following Amended and Restated Articles of Incorporation
correctly set forth without change the corresponding provisions of the Articles of Incorporation as
heretofore amended, and that the following Amended and Restated Articles of Incorporation supersede
the original Articles of Incorporation and all amendments thereto.

ARTICLE ONE

     The name of the corporation is: H & R BLOCK, INC.

ARTICLE TWO

     The address of the corporation’s registered office in the State of Missouri is 120 South
Central Avenue, Clayton, Missouri 63105, and the name of its registered agent at such address is CT
Corporation System.

ARTICLE THREE

     The aggregate number of shares of all classes of stock which the corporation shall have
authority to issue is 806,000,000 divided into two classes as follows:

	 	(i)	 	800,000,000 shares of a class designated Common Stock, without par value;
and
	 
	 	(ii)	 	6,000,000 shares of a class designated Preferred Stock, without par
value.

     The voting powers, designations, preferences, qualifications, limitations, restrictions and
special or relative rights in respect of each class of stock are or shall be fixed as follows:

               (1) Preferred Stock. The Board of Directors is expressly authorized to issue the
Preferred Stock from time to time, in one or more series, provided that the aggregate
number of shares issued and outstanding at any time of all such series shall not
exceed 6,000,000. The Board of Directors is further authorized to fix or alter, in
respect of each such series, the following terms and provisions of any authorized and
unissued shares of such stock:

(a) The distinctive serial designation;

 

 

(b) The number of shares of the series, which number may at any time or from
time to time be increased or decreased (but not below the number of shares of
such series then outstanding) by the Board of Directors;

(c) The voting powers and, if voting powers are granted, the extent of such
voting powers including the right, if any, to elect a director or directors,
provided, that the holders of shares of Preferred Stock will not be entitled
(A) to more than one vote per share, when voting as a class with the holders
of shares of common stock, and (B) to vote on any matter separately as a
class, except with respect to any amendment or alteration of the provisions of
these Articles of Incorporation that would adversely affect the powers,
preferences or special rights of the applicable series of Preferred Stock or
as otherwise provided by law;

(d) The election, term of office, filling of vacancies and other terms of the
directorships of directors elected by the holders of any one or more classes
or series of such stock;

(e) The dividend rights, including the dividend rate and the dates on which
any dividends shall be payable;

(f) The date from which dividends on shares issued prior to the date for
payment of the first dividend thereon shall be cumulative, if any;

(g) The redemption price, terms of redemption, and the amount of and
provisions regarding any sinking fund for the purchase or redemption thereof;

(h) The liquidation preferences and the amounts payable on dissolution or
liquidation;

(i) The terms and conditions, if any, under which shares of the series may be
converted; and

(j) Any other terms or provisions which the Board of Directors is by law
authorized to fix or alter.

     (2) Common Stock. The holders of shares of Common Stock shall be entitled (i) to vote on all
matters at all meetings of the shareholders of the corporation on the basis of one vote for each
share of Common Stock held of record; (ii) subject to any preferential dividend rights applicable
to the Preferred Stock, to receive such dividends as may be declared by the Board of Directors; and
(iii) in the event of the voluntary, or involuntary, liquidation or winding up of the corporation,
after distribution in full of any preferential amounts to be distributed to holders of shares of
Preferred Stock, to receive all of the remaining assets of the corporation available for
distribution to its shareholders, ratably in proportion to the aggregate number of their shares of
Common Stock and Preferred Stock (if the holders of such Preferred Stock are entitled to share in
such distribution).

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     (3) Provisions applicable to Common and Preferred Stock. No holder of shares of stock of the
corporation of any class shall be entitled, as a matter of right, to purchase or subscribe for any
shares of stock of the corporation, of any class, whether now or hereafter authorized. The Board
of Directors shall have authority to fix the issue price of any and all shares of stock of the
corporation of any class.

ARTICLE FOUR

     The number of shares to be issued before the corporation shall commence business is: Twenty
(20) shares of common stock, and the consideration to be paid therefor, and the capital with which
the corporation will commence business, is: Two Thousand ($2,000.00) Dollars. All of said shares
have been first duly subscribed by the undersigned incorporators and have been paid up in lawful
money of the United States.

ARTICLE FIVE

     The names and places of residence of the initial subscribers and shareholders, and the number
of shares of stock subscribed by each, are:

	 	 	 	 	 
	Name	 	Residence	 	No. of Shares
	R. A. Bloch
	 	6501 Overbrook, Kansas City, Mo.	 	10
	Henry W. Bloch
	 	2026 W. 63rd St., Kansas City, Mo.	 	9
	L. E. Bloch, Jr.
	 	414 W. 58th St., Kansas City, Mo.	 	1

ARTICLE SIX

     (A) Number of Directors. The number of directors to constitute the Board of Directors shall be
not less than seven nor more than twelve, the exact number to be fixed by a resolution adopted by
the affirmative vote of a majority of the whole Board.

     (B) Election of Directors. Directors shall be elected at each annual meeting of shareholders
to hold office until the next succeeding annual meeting of shareholders or until such director’s
successor has been elected and qualified. The term of office of each director shall begin
immediately after his election and each director shall hold office until the next succeeding annual
meeting of shareholders or until such director’s successor has been elected and qualified and
subject to prior death, resignation, retirement or removal from office of the director. No decrease
in the number of directors constituting the board of directors shall reduce the term of any
incumbent director. No person shall serve as a director for a period or consecutive periods that
extend beyond the twelfth annual shareholders meeting following the annual shareholders meeting at
which such person was first elected to the Board of Directors by the shareholders.

     (C) Vacancies. Newly created directorships resulting from an increase in the number of
directors and any vacancies on the Board of Directors resulting from any cause shall be filled by a
majority of the Board of Directors then in office, although less than a quorum, or by a sole
remaining director. Any director elected to fill a vacancy not

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resulting from an increase in the number of directors shall have the same remaining term as his or
her predecessor.

     (D) Removal of Directors. The entire Board of Directors of the corporation may be removed at
any time but only by the affirmative vote of the holders of 80% or more of the outstanding shares
of each class of stock of the corporation entitled to elect one or more directors at a meeting of
the shareholders called for such purpose.

     (E) Bylaws. The Board of Directors shall have the power to make, alter, amend, change, add
to or repeal the Bylaws of the corporation.

     (F) Independent Chairman of the Board. No person may simultaneously hold the offices of
chairman of the board and vice-chairman of the board, chairman of the board and chief executive
officer, or chairman of the board and president. Furthermore, the chairman of the board shall be
independent pursuant to standards promulgated by the Securities and Exchange Commission and the New
York Stock Exchange and shall not have served previously as an executive officer of the Company.

ARTICLE SEVEN

     The duration of the corporation is perpetual.

ARTICLE EIGHT

     The purposes for which the corporation is formed are as follows:

     (1) To perform bookkeeping services, including the preparation of books of account, balance
sheets and profit and loss statements, to render tax services, including the preparation of tax
returns, and to perform any and all other services directly or indirectly related thereto.

     (2) To purchase, lease or otherwise acquire, hold, own, improve, develop, sell, mortgage,
pledge and otherwise deal in and with real and personal property of every kind and description in
the United States of America, and in any territory, colony, dependency or district thereof, and in
any foreign country or countries to the extent that the same may be lawfully permissible.

     (3) To buy, sell, utilize, lease, rent, import, export, manufacture, produce, design, prepare,
assemble, fabricate, distribute and otherwise deal in, either at wholesale or retail, or both,
either as principal, agent or on commission, all commodities, goods, wares, merchandise, machinery,
tools, devices, apparatus, equipment and all other personal property, whether tangible or
intangible, of every kind and description.

     (4) To buy, purchase, manufacture, assemble, distribute, lease (either as lessor or lessee),
acquire, sell or in any manner dispose of, import, export, use, operate, rent, hire, mortgage,
furnish, grant the use of, repair and generally deal in all kinds of construction,

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building and engineering equipment, including, but not limited to, bulldozers, castings,
cranes, compressors, concrete mixers, drag lines, dump wagons, earth moving machinery and
equipment, plows, pumps, road machines, road rollers, scrapes, shovels, tractors, trucks and
automobile equipment, and in general all kinds of machinery, appliances, devices, implements,
tools, fixtures, instruments, supplies, materials, and property of every kind and description,
usable or adaptable for use by contractors and civil engineers.

     (5) To apply for, obtain, purchase, lease, take licenses in respect of or otherwise acquire,
and to hold, own, use, operate, enjoy, turn to account, grant licenses in respect of, manufacture
under, introduce, sell, assign, mortgage, pledge or otherwise dispose of:

	 	a)	 	Any and all inventions, devices and processes and any
improvements and modifications thereof;
	 
	 	b)	 	Any and all letters patent of the United States or of any
other country, state or locality, and all rights connected therewith or
appertaining thereto;
	 
	 	c)	 	Any and all copyrights granted by the United States or
any other country, state or locality as aforesaid;
	 
	 	d)	 	Any and all trade-marks, trade names, trade symbols and
other indications of origin and ownership granted by or recognized under the
laws of the United States or of any other country, state or locality as
aforesaid; and to conduct and carry on its business in any or all of its
various branches under any trade name or trade names.

     (6) To engage in, carry on and conduct research, experiments, investigations, analyses,
studies and laboratory work, for the purpose of discovering new products or to improve products,
articles and things and to acquire, own, operate, maintain and dispose of, whenever the corporation
deems such action desirable, laboratories and similar facilities, plants and any and all other
establishments, and to procure, own and hold all necessary equipment in respect thereof, for the
purposes aforesaid.

     (7) To enter into any lawful contract or contracts with persons, firms, corporations or other
entities, governments or any agencies or subdivisions thereof, including guaranteeing the
obligations of any person, firm, or corporation or other entity.

     (8) To purchase and acquire, as a going concern or otherwise, and to carry on, maintain and
operate all or any part of the property or business of any corporation, firm, association, entity,
syndicate, or person whatsoever, deemed to be of benefit to the corporation, or of use in any
manner in connection with any of its objects or purposes; and to acquire, own, hold and use and
dispose of, upon such terms as may seem advisable to the corporation, any and all property, real,
personal or mixed, and any interest therein deemed necessary, useful or of benefit to the
corporation in any manner in connection with any of its objects or purposes.

5

 

     (9) To purchase or otherwise acquire, hold, sell, pledge, reissue, transfer or otherwise deal
in shares of the corporation’s own stock, provided that it shall not use its funds or property for
the purchase of its own shares of stock when such use would be in any manner prohibited by law, by
the articles of incorporation or by the bylaws of the corporation; and, provided further, that
shares of its own stock belonging to it shall not be voted upon directly or indirectly.

     (10) To invest, lend and deal with moneys of the corporation in any lawful manner, and to
acquire by purchase, by the exchange of stock or other securities of the corporation, by
subscription or otherwise and to invest in, to hold for investment or for any other purpose, and to
deal in and use, sell, pledge, or otherwise dispose of, and in general to deal in any interest
concerning or enter into any transaction with respect to (including “long” and “short” sales of)
any stocks, bonds, notes, debentures, certificates, receipts and other securities and obligations
of any government, state, municipality, corporation, association or other entity, including
individuals and partnerships and, while owner thereof, to exercise all of the rights, powers and
privileges of ownership, including, among other things, the right to vote thereon for any and all
purposes and to give consent with respect thereto.

     (11) To borrow or raise money for any purpose of the corporation and to secure the same and
the interest accruing on any such loan, indebtedness or obligation of the corporation, and for that
or any other purposes to mortgage, pledge, hypothecate or charge all or any part of the present or
hereafter acquired property, rights and franchises of the corporation, real, personal, mixed or of
any character whatever, subject only to limitations specifically imposed by law.

     (12) To do any or all of the things hereinabove enumerated alone for its own account, or for
the account of others, or as the agent for others, or in association with others or by or through
others, and to enter into all lawful contracts and undertakings in respect thereof.

     (13) To have one or more offices, to conduct its business, carry on its operations and
promote its objects within and without the State of Missouri, in other states, the District of
Columbia, the territories, colonies and dependencies of the United States and in foreign countries,
without restriction as to place, manner or amount, but subject to the laws of such state, district,
territory, colony, dependency or country; and to do any or all of the things herein set forth to
the same extent as natural persons might or could do and in any part of the world, either alone or
in company with others.

     (14) In general, to carry on any other business in connection with each and all of the
foregoing or incidental thereto, and to carry on, transact and engage in any and every lawful
business or other lawful thing calculated to be of gain, profit or benefit to the corporation as
fully and freely as a natural person might do, to the extent and in the manner, anywhere within or
without the State of Missouri, as it may from time to time determine; and to have and exercise each
and all of the powers and privileges, either

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direct or incidental, which are given and provided by or are available under the laws of the State
of Missouri in respect of private corporations organized for profit thereunder; provided, however,
that the corporation shall not engage in any activity for which a corporation may not be formed
under the laws of the State of Missouri.

     It is the intention that each of the objects, purposes and powers specified in each of the
paragraphs in this Article Eight shall be in no wise limited or restricted by reference to or
inference from the terms of any other paragraph, but that the objects, purposes and powers
specified in each of the paragraphs of this Article Eight shall be regarded as independent objects,
purposes and powers. The enumeration of the specific objects, purposes and powers of this Article
shall not be construed to restrict in any manner the general objects, purposes and powers of this
corporation, nor shall the expression of one thing be deemed to exclude another, although it be of
like nature. The enumeration of objects, purposes or powers herein shall not be deemed to exclude
or in any way limit by inference any objects, purposes or powers which this corporation has power
to exercise, whether expressly or by force of the laws of the State of Missouri, now or hereafter
in effect, or impliedly by any reasonable construction of such laws.

ARTICLE NINE

     The private property of the shareholders shall not be subject to the payment of the corporate
debt of the corporation.

ARTICLE TEN

     Both the shareholders and directors shall have power, if the Bylaws so provide, to hold their
meetings and to have one or more offices within or without the State of Missouri, and to keep books
and records of the corporation business (subject to the provisions of the applicable laws of
Missouri) outside of the State of Missouri, at such places as may be from time to time designated
by the Board of Directors.

ARTICLE ELEVEN

     Any contract, transaction or act of the corporation or of the directors, which shall be
ratified by a majority of a quorum of the shareholders having voting power at any annual meeting,
or at any special meeting called for such purpose, shall, except as otherwise specifically provided
by law or by the Articles of Incorporation, be as valid and as binding as though ratified by every
shareholder of the corporation; provided, however, that any failure of the shareholders to approve
or ratify such contract, transaction or act, when and if submitted, shall not of itself be deemed
in any way to render the same invalid, nor deprive the directors of their right to proceed with
such contract, transaction or act.

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ARTICLE TWELVE

     In case the corporation enters into contracts or transacts business with one or more of its
directors, or with any firm of which one or more of its directors are members, or with any other
corporation or association of which one or more of its directors are members or shareholders,
directors or officers, such transaction or transactions shall not be invalidated or in any way
affected by the fact that such director or directors have or may have interests therein which are
or might be adverse to the interests of this corporation; provided that such contract or
transaction is entered into in good faith and authorized or ratified in the usual course of
business as may be provided for in the Bylaws of this corporation.

ARTICLE THIRTEEN

     The corporation reserves the right to amend, alter, change, or repeal any provision contained
in these Articles of Incorporation, in the manner as hereafter prescribed by statute, and all
rights conferred upon stockholders herein are granted subject to this reservation.

ARTICLE FOURTEEN

     Special meetings of the shareholders for any lawful purpose or purposes may be called only by
a majority of the Board of Directors, by the holders of not less than 80% of all outstanding shares
of stock of the corporation entitled to vote at an annual meeting, by the Chairman of the Board or
by the President.

ARTICLE FIFTEEN

     The affirmative vote of not less than 80% of the outstanding shares of the corporation
entitled to vote in an election of directors shall be required for the approval or authorization of
any Business Transaction (as hereinafter defined) with a Related Person (as hereinafter defined),
whether or not such Business Transaction was approved by a lesser vote prior to the time the
Related Person became a Related Person, unless:

	 	(1)	 	The Business Transaction shall have been approved by a two-thirds vote of
the Continuing Directors (as hereinafter defined); or
	 
	 	(2)	 	The Business Transaction is a merger or consolidation and the cash or
fair market value of the property, securities or other consideration to be received
per share by the holders of each class of stock of the corporation in the Business
Transaction is not less than such Related Person’s Highest Purchase Price (as
hereinafter defined).

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For purposes of this Article Fifteen:

	 	1.	 	The term “Business Transaction” shall mean: (a) any merger or
consolidation of the corporation or any subsidiary of the corporation; (b) any
sale, lease, exchange, mortgage, pledge, transfer or other disposition (in one
transaction or a series of transactions) of all or a Substantial Part (as
hereinafter defined) of the assets of the corporation or any subsidiary; (c) the
issuance, sale, exchange, transfer or other disposition by the corporation or any
subsidiary of any securities of the corporation or any subsidiary; (d) any
reclassification of securities (including any reverse stock split) or
recapitalization of the corporation or any other transaction which has the effect,
directly or indirectly, of increasing the voting power of a Related Person; (e)
any liquidation, spinoff, split-up or dissolution of the corporation; and (f) any
agreement, contract or other arrangement providing for any of the transactions
described in this definition of Business Transaction.
	 
	 	2.	 	The term “Related Person” shall mean and include any individual,
corporation, partnership or other person or entity, other than the corporation or
any wholly-owned subsidiary thereof, which, together with its “Affiliates” and
“Associates” (as defined on June 1, 1983 in Rule 12b-2 under the Securities
Exchange Act of 1934 (the “Exchange Act”), “Beneficially Owns” (as defined on June
1, 1983, in Rule 13d-3 under the Exchange Act) in the aggregate 15 percent or more
of the outstanding shares of the corporation entitled to vote in an election of
directors at the time a resolution approving the Business Transaction is adopted
by a two-thirds vote of the corporation’s Board of Directors or on the record date
for the determination of shareholders entitled to notice of and to vote on the
Business Transaction, and any Affiliate or Associate of any such individual,
corporation, partnership or other person or entity.
	 
	 	3.	 	The term “Continuing Director” shall mean any member of the Board of
Directors of the corporation who was either a member of the Board of Directors prior
to the time that the Related Person became a Related Person or who subsequently
became a director of the corporation and whose election, or nomination for election
by the corporation’s shareholders, was approved by a vote of a majority of the
Continuing Directors.
	 
	 	4.	 	The term “Highest Purchase Price” shall mean the highest amount of
consideration paid by such Related Person for a share of the corporation’s Common
Stock within one year prior to the date such person became a Related Person or in
the transaction that resulted in such Related Person becoming a Related Person,
provided that the Highest Purchase Price shall be appropriately adjusted for stock
splits, stock dividends and like distributions.

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	 	5.	 	The term “Substantial Part” shall mean more than 20% of the fair
market value of the total assets of the entity in question, as of the end of its
most recent fiscal year ending prior to the time the determination is made.

ARTICLE SIXTEEN

     The affirmative vote of the holders of not less than 80% of the outstanding shares of stock of
this corporation entitled to vote generally in the election of directors shall be required to
amend, modify, alter or repeal Articles Three, Six, Fourteen, Fifteen and Sixteen of these Articles
of Incorporation or any provision of the corporation’s Bylaws, provided that the affirmative vote
of a majority of the votes entitled to be cast shall be sufficient to approve any such amendment,
modification, alternation or repeal that has been adopted by a vote of 80% of the members of the
Board of Directors and that the power of the Board of Directors to amend, modify, alter or repeal
any Bylaw shall be governed by Section E of Article Six.

     IN WITNESS WHEREOF, the undersigned has caused these Amended and Restated Articles of
Incorporation to be executed this 15 day of October, 2008.

	 	 	 	 	 
	 

	 	H&R BLOCK, INC.	 	 
	 
	 	 	 	 
	 

	 	/s/ Bret G. Wilson	 	 
	 

	 	 

Bret G. Wilson
	 	 
	 

	 	Vice President and Secretary	 	 

10

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