Document:

Unassociated Document

Exhibit 10.22

Representations and Warranties

Regarding the $70,000 Demand Promissory note dated September 19, 2011

As Amended Effective June 14, 2012

 

 

As of June 19, 2012 Focus Gold Corporation (“Focus Gold”) represents and warrants to  Wimmer that the following is true and correct:

 

 

	
1.  

	
In a Demand Promissory Note dated September 14, 2011 (the “Original Note”) between Focus Gold and Per Wimmer (“PWimmer”), Focus Gold promised to pay PWimmer Principal in the amount of US$200,000, Interest on the Principal at the rate of 2% per month compounded monthly, and Commitment Arrangement and Placement Fees of $50,000 per month (less interest payable).

 

	
2.  

	
As of June 14, 2012, the balance payable on the Note was $650,000  inclusive of Principal, Interest, Commitment Arrangement and Placement Fees, and all other amounts payable under the Note.

 

	
3.  

	
Focus Gold and PWimmer entered into a settlement agreement to the Original Note (effective date of June 14, 2012) in which Focus Gold and PWimmer agreed to retire all Commitment Arrangement and Placement Fees due and payable now and in the future in exchange for three million shares of Focus Gold.

 

 

FOCUS GOLD CORPORTION

 

 

 

/s/Grant R. White

Grant R. White

Chief Executive Officer

Acknowledged:

/s/Per Wimmer

Per Wimmer

 

 

  

  

  

SETTLEMENT AMENDMENT TO DEMAND PROMISSORY NOTE

ISSUER:                            Focus Gold Corporation

(The “Debtor”)

HOLDER:                          Per Wimmer

(The “Holder”)

EFFECTIVE DATE:          June 14, 2012

 

WHEREAS in a demand promissory note dated September 14, 2011 between the Debtor and the Holder (the “Note”) the debtor promised to pay Holder Principal in the amount of US$200,000.  Interest, Principal at the rate of 2% per month compounded monthly and commitment Arrangement and Placement Fees of $50,000 per month (less interest payable):

WHEREAS as of the effective date the balance payable on the note is $650,000 inclusive of Principal, Interest, Commitment Arrangement and Placement Fees, and all other amounts payable under the Note;  and

WHEREAS, the Note is payable upon demand after November 14, 2011.

NOW THEREFORE Debtor and Holder agree as follows:

The parties hereby agree to a settlement amendment as follows:

	
i)  

	
In exchange for the full and final settlement of any amounts owing under Section 4, for Commitment Arrangement and Placement Fees equal to $410,981.50 and the removal of any future amounts owing under clause 4, and the extension of the Note to September 19, 2012, the Debtor hereby agrees to issue to the Holder three million free-trade common shares of the Debtor.

	
ii)  

	
For the avoidance of doubt, the Note continues to accrue interest at the rate of 2% since September 14th, 2011.

	
iii)  

	
If Principal plus all accrued interest is not repaid on the Note by September 19th, then the Debtor will be in Default under the Note.  The penalty for being in Default is an increase in the Interest rate to 5% per month and the requirement for the Debtor to issue 1,150,000 common shares for each month past due payable in advance commencing September 20th.  If partial payment has been made, the share penalty will be prorated accordingly.  The Holder also has all legal rights under UK law to enforce repayment as the Debtor is in default on its obligations.

	
iv)  

	
All other terms remain the same and all accrued interest and Principal remain payable.

IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first set forth above

FOCUS GOLD CORPORATION

/s/Grant R. White

Grant R. White

Chief Executive Officer

/s/Per Wimmer

Per Wimmerexhibit_10-1.htm

 

 

Exhibit 10.1

 

 

Execution Version

	
  

	
June 11, 2012

	
To:

	
ONEOK, Inc.

	
  

	
100 West Fifth Street

	
  

	
Tulsa, OK  74103

Attn:  Robert Martinovich

Telephone:  918-588-7941

Facsimile:  918-588-7971

	
From

	
Goldman, Sachs & Co.

	
  

	
200 West Street

	
  

	
New York, NY 10282-2198

	
  

	
Attn: Jason Lee

	
  

	
Telephone: 212-902-0923

	
  

	
Facsimile: 212-346-2126

	
Re:

	
Issuer Forward Repurchase Transaction

	
  

	
(GS&Co. Reference Number: SDB 4166045216)

 

Ladies and Gentlemen:

 

The purpose of this communication (this “Confirmation”) is to confirm the terms and conditions of the Transaction entered into between Goldman, Sachs & Co. (“GS&Co.”) and ONEOK, Inc. (“Counterparty”) on the Trade Date specified below (the “Transaction”).  The terms of the Transaction shall be set forth in this Confirmation.  This Confirmation shall constitute a “Confirmation” as referred to in the ISDA Master Agreement specified below.

 

1.             This Confirmation is subject to, and incorporates, the definitions and provisions of the 2006 ISDA Definitions (including the Annex thereto) (the “2006 Definitions”) and the definitions and provisions of the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions,” and together with the 2006 Definitions, the “Definitions”), in each case as published by the International Swaps and Derivatives Association, Inc. (“ISDA”).  In the event of any inconsistency between the 2006 Definitions and the Equity Definitions, the Equity Definitions will govern.

 

This Confirmation evidences a complete and binding agreement between GS&Co. and Counterparty as to the terms of the Transaction to which this Confirmation relates.  This Confirmation shall be subject to and form a part of an agreement (the “Agreement”) in the form of the ISDA 2002 Master Agreement (the “ISDA Form”) as if GS&Co. and Counterparty had executed an agreement in such form (without any Schedule but with the following elections:  (i) the replacement of the word “first” in the third line of Section 5(a)(i) with the word “second,” (ii) the election that the “Cross Default” provisions of Section 5(a)(vi) shall apply to Counterparty and to GS&Co., with a “Threshold Amount”, in each case, of USD50 million; provided that Section 5(a)(vi) is amended to delete the phrase “, or becoming capable at such time of being declared,” from line 7 thereof, (iii) the deletion of both occurrences of the number “15” in Section 5(a)(vii) and their replacement with the number “30,” (iv) the insertion of “, absent manifest error” immediately before the period at the end of the last sentence of Section 6(d)(i), and (v) such other elections as may be set forth in this Confirmation).  The Transaction shall be the only Transaction under the Agreement.

 

All provisions contained in, or incorporated by reference to, the Agreement will govern this Confirmation except as expressly modified herein.  In the event of any inconsistency between this Confirmation and either the Definitions or the Agreement, this Confirmation shall govern.  The Transaction is a Share Forward Transaction within the meaning set forth in the Equity Definitions.

 

2.             The terms of the particular Transaction to which this Confirmation relates are as follows:

 

General Terms:

 

	
  

	
Trade Date:

	
June 11, 2012

 

  

  

  

 

	
  

	
Seller:

	
GS&Co.

 

	
  

	
Buyer:

	
Counterparty

 

	
  

	
Shares:

	
The common stock of Counterparty, par value USD 0.01 per share (Ticker Symbol: “OKE”)

 

	
  

	
Prepayment:

	
Applicable

 

	
  

	
Prepayment Amount:

	
As provided in Annex B to this Confirmation.

 

	
  

	
Prepayment Date:

	
The first Exchange Business Day following the Trade Date

 

	
  

	
Exchange:

	
New York Stock Exchange

 

	
  

	
Related Exchange(s):

	
All Exchanges

 

	
  

	
Calculation Agent:

	
GS&Co.; provided that, following the occurrence of an Event of Default pursuant to Section 5(a)(vii) of the Agreement with respect to which GS&Co. is the Defaulting Party, Counterparty shall have the right to designate a nationally recognized third-party dealer in over-the-counter corporate equity derivatives to act, during the period commencing on the date such Event of Default occurred and ending on the Early Termination Date with respect to such Event of Default, as the Calculation Agent.  Following any determination or calculation by the Calculation Agent hereunder, upon a written request by Counterparty, the Calculation Agent will, as promptly as practicable (but in any event no later than five (5) Exchange Business Days following the later of (i) the date of such written request and (ii) the date of such determination or calculation), provide to Counterparty by e-mail, to the e-mail address provided by Counterparty in such written request, a report (in a commonly used file format for the storage and manipulation of financial data without disclosing any proprietary models of the Calculation Agent or any information that GS&Co. determines, based on the advice of outside counsel, is subject to a duty, whether arising by contract, regulation or operation of law, of confidentiality GS&Co. owes to any third party) displaying in reasonable detail the basis for such determination or calculation.

 

Valuation Terms:

 

	
  

	
Averaging Dates:

	
Each of the consecutive Exchange Business Days commencing on, and including, the Exchange Business Day immediately following the Trade Date and ending on, and including, the Final Averaging Date.

 

	
  

	
Final Averaging Date:

	
The Scheduled Final Averaging Date; provided that GS&Co. shall have the right, in its absolute discretion, at any time to accelerate the Final Averaging Date, in whole or in part, to any date that is on or after the Scheduled Earliest Acceleration Date by written notice to Counterparty no later than 8:00 P.M., New York City time, on the Exchange Business Day immediately following the accelerated Final Averaging Date.

 

	
  

	 	
In the case of  any acceleration of the Final Averaging Date in part (a “Partial Acceleration”), GS&Co. shall specify in its written notice to Counterparty accelerating the Final Averaging Date the corresponding percentage of the Prepayment Amount that is subject to valuation on the related Valuation Date, and Calculation Agent shall adjust the terms of the Transaction as it deems appropriate, acting in good faith and in a commercially reasonable manner, in order to take into account the occurrence of such Partial Acceleration

 

  

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(including cumulative adjustments to take into account all Partial Accelerations that occur during the term of the Transaction).

 

	 	

Scheduled Final Averaging

Date:

	
 

As provided in Annex B to this Confirmation.

 

	
  

	

Scheduled Earliest Acceleration

Date:

	
 

As provided in Annex B to this Confirmation.

 

	
  

	
Valuation Date:

	
The Final Averaging Date.

 

	
  

	
Averaging Date Disruption:

	
Modified Postponement; provided that, notwithstanding anything to the contrary in the Equity Definitions, if a Market Disruption Event occurs on any Averaging Date, the Calculation Agent may, if appropriate in light of market conditions, regulatory considerations or otherwise, take any or all of the following actions: (i) postpone the Scheduled Final Averaging Date in accordance with Modified Postponement (as modified herein) and/or (ii) determine that such Averaging Date is a Disrupted Day only in part, in which case the Calculation Agent shall (x) determine the VWAP Price for such Disrupted Day based on Rule 10b-18 eligible transactions in the Shares on such Disrupted Day taking into account the nature and duration of such Market Disruption Event and (y) determine the Settlement Price based on an appropriately weighted average instead of the arithmetic average described under “Settlement Price” below.  Any Exchange Business Day on which, as of the date hereof, the Exchange is scheduled to close prior to its normal close of trading shall be deemed not to be an Exchange Business Day; if a closure of the Exchange prior to its normal close of trading on any Exchange Business Day is first scheduled following the date hereof, then such Exchange Business Day shall be deemed to be a Disrupted Day in full.

 

	
  

	
Market Disruption Events:

	
Section 6.3(a) of the Equity Definitions is hereby amended (A) by deleting the words “during the one hour period that ends at the relevant Valuation Time, Latest Exercise Time, Knock-in Valuation Time or Knock-out Valuation Time, as the case may be” in clause (ii) thereof and inserting the words “on any Scheduled Trading Day during the Relevant Period,” after “material,” in the third line thereof and (B) by replacing the words “or (iii) an Early Closure” therein with “(iii) an Early Closure, or (iv) a Regulatory Disruption”.

 

	
  

	
Section 6.3(d) of the Equity Definitions is hereby amended by deleting the remainder of the provision following the term “Scheduled Closing Time” in the fourth line thereof.

 

	
  

	
Regulatory Disruption:

	
Any event that GS&Co., in its good faith, commercially reasonable discretion based on the advice of nationally recognized outside counsel, determines makes it appropriate with regard to any legal, regulatory or self-regulatory requirements or related policies and procedures (provided that such requirements, policies or procedures relate to legal or regulatory issues and are generally applicable in similar situations and applied to the Transaction in a non-discriminatory manner) for GS&Co. to refrain from or decrease any market activity in connection with the Transaction. GS&Co. shall notify Counterparty as soon as reasonably practicable that a Regulatory Disruption has occurred and the Averaging Dates affected by it and shall subsequently promptly notify Counterparty in writing

 

  

3

  

 

	 	
 

	
on the day GS&Co. determines that it may resume its market activity in connection with the Transaction.

 

Settlement Terms:

 

	
  

	
Initial Share Delivery:

	
On the Initial Share Delivery Date, GS&Co. shall deliver to Counterparty the Initial Shares.

 

	
  

	
Initial Share Delivery Date:

	
The first Exchange Business Day following the Trade Date.

 

	
  

	
Initial Shares:

	
As provided in Annex B to this Confirmation.

 

	
  

	
Settlement Date:

	
The date that falls one Settlement Cycle following the Valuation Date.

 

	
  

	
Settlement:

	
On the Settlement Date, GS&Co. shall deliver to Counterparty the Number of Shares to be Delivered, if a positive number. If the Number of Shares to be Delivered is a negative number, the Counterparty Settlement Provisions in Annex A shall apply.

 

	
  

	
Number of Shares to be Delivered:

	

A number of Shares equal to (a) the Prepayment Amount divided by (b) the Divisor Amount; provided that the Number of Shares to be Delivered as so determined shall be reduced by the number of Shares delivered on the Initial Share Delivery Date.

 

	
  

	
Divisor Amount:

	
The greater of (i) the Settlement Price minus the Discount and (ii) $1.00.

 

	
  

	
Settlement Price:

	
The arithmetic average of the VWAP Prices for all Averaging Dates.

 

	
  

	
VWAP Price:

	
For any Averaging Date, the Rule 10b-18 dollar volume weighted average price per Share for such day based on transactions executed during such day, as reported on Bloomberg Page “OKE <Equity> AQR_SEC” (or any successor thereto) or, in the event such price is not so reported on such day for any reason or is manifestly incorrect, as determined by the Calculation Agent using a volume weighted method.

 

	
  

	
Discount:

	
As provided in Annex B to this Confirmation.

 

	
  

	
Excess Dividend Amount:

	
For the avoidance of doubt, all references to the Excess Dividend Amount in Section 9.2(a)(iii) of the Equity Definitions shall be deleted.

 

	
  

	
Other Applicable Provisions:

	
To the extent either party is obligated to deliver Shares hereunder, the provisions of the last sentence of Section 9.2 and Sections 9.8, 9.9, 9.10, 9.11 (except that the Representation and Agreement contained in Section 9.11 of the Equity Definitions shall be modified by excluding any representations therein relating to restrictions, obligations, limitations or requirements under applicable securities laws arising as a result of the fact that Counterparty is the Issuer of the Shares) and 9.12 of the Equity Definitions will be applicable as if “Physical Settlement” applied to the Transaction.

 

Dividends:

 

	
  

	
Dividend:

	
Any dividend or distribution on the Shares other than any dividend or distribution of the type described in Sections 11.2(e)(i), 11.2(e)(ii)(A) or 11.2(e)(ii)(B) of the Equity Definitions.

 

Share Adjustments:

 

	
  

	
Method of Adjustment:

	
Calculation Agent Adjustment; provided that the declaration or payment of Dividends shall not be a Potential Adjustment Event.

 

  

4

  

 

	
  

	
It shall constitute an additional Potential Adjustment Event if the Scheduled Final Averaging Date is postponed pursuant to “Averaging Date Disruption” above, in which case the Calculation Agent may, in its good faith and commercially reasonable discretion, adjust any relevant terms of the Transaction as the Calculation Agent determines appropriate to account for the economic effect on the Transaction of such postponement, based on the volatility, expected dividends, stock loan rate or liquidity relative to the relevant Shares.

 

Extraordinary Events:

 

	
  

	
Consequences of Merger Events:

	 

 

	
  

	
(a)  Share-for-Share:

	
Modified Calculation Agent Adjustment

 

	
  

	
(b)  Share-for-Other:

	
Cancellation and Payment on that portion of the Other Consideration that consists of cash; Modified Calculation Agent Adjustment on the remainder of the Other Consideration

 

	
  

	
(c)  Share-for-Combined:

	
Component Adjustment

 

	
  

	
Tender Offer:

	
Applicable

 

	 	

Consequences of Tender Offers:

	
 

 

	
  

	
(a)  Share-for-Share:

	
Modified Calculation Agent Adjustment

 

	
  

	
(b)  Share-for-Other:

	
Modified Calculation Agent Adjustment

 

	
  

	
(c)  Share-for-Combined:

	
Modified Calculation Agent Adjustment

 

provided that, without limiting the generality of clause (ii) of Section 12.3(d) of the Equity Definitions, if, in respect of any of clauses (a) through (c) of “Tender Offer” above, GS&Co. concludes, in its good faith and commercially reasonable discretion and based on the advice of nationally recognized outside counsel, that, as a result of any legal, regulatory or self-regulatory requirements or related policies and procedures (whether or not such requirements, policies or procedures are imposed by law or have been voluntarily adopted generally by GS&Co., but provided that such policies or procedures are related to legal, regulatory or self-regulatory issues and are generally applicable in similar situations and applied to the Transaction in a non-discriminatory manner):

	 	
(i) 

	
it is appropriate to cancel the Transaction; or

	 	
(ii) 

	
it is no longer advisable to hedge the Transaction in the manner contemplated on the Trade Date for such Transaction,

then, in each case, Cancellation and Payment shall apply to the Transaction; provided further that, solely for purposes of clauses (i) and (ii) above, and notwithstanding “Consequences of Announcement Events” below, Sections 12.3(a) and 12.3(d) of the Equity Definitions shall each be amended by replacing each occurrence of the words “Tender Offer Date” by “Announcement Date.”

 

	
  

	

Modified Calculation Agent

Adjustment:

	
 

For greater certainty, the definition of “Modified Calculation Agent Adjustment” in Sections 12.2 and 12.3 of the Equity Definitions shall be amended by (i) adding the following italicized language after the stipulated parenthetical provision: “(including adjustments to account 

 

  

5

  

 

	 	

 

	
for changes in volatility, expected dividends, stock loan rate or liquidity relevant to the Shares or to the Transaction) from the Exchange Business Day immediately preceding the Announcement Date to the first Exchange Business Day immediately following the Merger Date (Section 12.2) or Tender Offer Date (Section 12.3).” and (ii) deleting the phrase “expected dividends,” from such stipulated parenthetical provision.

 

	
  

	

Composition of Combined

Consideration:

	
 

Not Applicable

 

	
  

	

Consequences of Announcement

Events:

	
 

Modified Calculation Agent Adjustment as set forth in Section 12.3(d) of the Equity Definitions; provided that references to “Tender Offer” shall be replaced by references to “Announcement Event” and references to “Tender Offer Date” shall be replaced by references to “Announcement Date.”  An Announcement Event shall be an “Extraordinary Event” for purposes of the Equity Definitions, to which Article 12 of the Equity Definitions is applicable.

 

	
  

	
Announcement Event:

	
The occurrence of an Announcement Date in respect of a potential Acquisition Transaction (as defined in Section 9 below).

 

	
  

	
Announcement Date:

	
The date of the first public announcement in relation to an Acquisition Transaction, or any publicly announced change or amendment to the announcement giving rise to an Announcement Date.

 

	
  

	

Provisions applicable to Merger

Events and Tender Offers:

	
 

The consequences set forth opposite “Consequences of Merger Events” and “Consequences of Tender Offers” above shall apply regardless of whether a particular Merger Event or Tender Offer relates to an Announcement Date for which an adjustment has been made pursuant to Consequences of Announcement Events, without duplication of any such adjustment.

 

	
  

	
New Shares:

	
In the definition of New Shares in Section 12.1(i) of the Equity Definitions, the text in clause (i) thereof shall be deleted in its entirety (including the word “and” following such clause (i)) and replaced with “publicly quoted, traded or listed on any of the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors)”.

 

	
  

	

Nationalization, Insolvency or

Delisting:

	
 

Cancellation and Payment (Calculation Agent Determination); provided that in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it shall also constitute a Delisting if the Exchange is located in the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, The NASDAQ Global Market or The NASDAQ Global Select Market (or their respective successors); if the Shares are immediately re-listed, re-traded or re-quoted on any such exchange or quotation system, such exchange or quotation system shall thereafter be deemed to be the Exchange.

 

	 	
Additional Disruption Events:

 

	
  

	
Change in Law:

	
Applicable; provided that in respect of the Transaction a Change in Law shall occur only if the Hedging Party (x) was unable, after using good faith and commercially reasonable efforts, to replace its existing 

 

  

6

  

 

	 	
 

	
Hedge Positions on commercially reasonable pricing terms with alternative Hedge Positions in respect of the Transaction to avoid the Change in Law that would have otherwise occurred absent such change in the Hedge Positions and (y) in the event (x) applies, has used good faith and commercially reasonable efforts to transfer its rights and obligations under the Transaction to the extent necessary to avoid such Change in Law and failed to so effect such transfer on commercially reasonable pricing terms pursuant to Section 10(f) below.

 

	 	
Failure to Deliver:

	
Applicable

 

	 	
Insolvency Filing:

	
Applicable

 

	 	
Hedging Disruption:

	
Applicable

 

	 	
Increased Cost of Hedging:

	
Applicable

 

	 	
Loss of Stock Borrow:

	
Applicable

 

	 	
MaximumStock Loan Rate:

	
As provided in Annex B to this Confirmation.

 

	 	
Increased Cost of Stock Borrow:

	
Applicable

 

	 	
Initial Stock Loan Rate:

	
As provided in Annex B to this Confirmation.

 

	
  

	
Hedging Party:

	
For all applicable Potential Adjustment Events and Extraordinary Events, GS&Co..

 

	
  

	
Determining Party:

	
For all Extraordinary Events, GS&Co.; provided that, upon receipt of written request from Counterparty, Determining Party shall promptly (but in no event later than within five Scheduled Trading Days from the receipt of such request) provide Counterparty with a written explanation describing in reasonable detail any determination made by Determining Party (including any quotations, market data or information from internal sources used in making such calculations, but without requiring any disclosure of confidential information or GS&Co.’s proprietary models or any information that GS&Co. determines, based on the advice of outside counsel, is subject to a duty, whether arising by contract, regulation or operation of law, of confidentiality GS&Co. owes to any third party).  Whenever the Determining Party is required to act or to exercise judgment in any way, it will do so in good faith and in a commercially reasonable manner.

	
  

	
Non-Reliance:

	
Applicable

 

	 	

Agreements and Acknowledgments

Regarding Hedging Activities:

	
Applicable

 

	 	

Additional Acknowledgments:

	
Applicable

 

3.             Account Details:

 

	
  

	

(a)  Account for delivery of Shares

to Counterparty:

	
To be advised

 

	
  

	

(b)  Account for payments to

Counterparty:

	
To be advised

 

	 	

(c)  Account for payments to GS&Co.

	
To be advised

 

Chase Manhattan Bank New York

For A/C Goldman, Sachs & Co.

A/C #930-1-011483

 

  

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ABA: 021-000021

 

4.             Offices:

 

	
 

	
(a)  The Office of Counterparty for the Transaction is: Counterparty is not a Multibranch Party

 

	
 

	
(b)  The Office of GS&Co. for the Transaction is:

 

	
 

	
Goldman, Sachs & Co.

	
 

	

200 West Street

	
 

	

New York, NY 10282-2198

 

5.             Notices:  For purposes of this Confirmation:

 

	
 

	
(a)  Address for notices or communications to Counterparty:

 

	
 

	
ONEOK, Inc.

	
 

	

100 West Fifth Street

	 	

Tulsa, OK  74013

	
 

	

Attn:

	
 

	

Telephone:

	 	
Facsimile:

	
  

 

	
 

	
(b)  Address for notices or communications to GS&Co.:

 

	
 

	Goldman, Sachs & Co.

	
 

	

200 West Street

	
 

	
New York, NY 10282-2198

	
 

	
Attention: Jason Lee, Equity Capital Markets

	
 

	
Telephone: 212-902-0923

	
 

	
Facsimile: 212-346-2126

	
 

	
Email: jason.lee@ny.ibd.email.gs.com

 

	
 

	
With a copy to:

 

	
 

	

Attention: Daniel Josephs

	
 

	
Equity Capital Markets

	
 

	
Telephone: +1-212-902-8193

	
 

	
Facsimile: +1-917-977-3943

	
 

	
Email: daniel.jospehs@ny.ibd.email.gs.com

 

	
 

	
And email notification to the following address:

	
 

	
Eq-derivs-notifications@am.ibd.gs.com

6.             Additional Provisions Relating to Transactions in the Shares.

 

(a)           Counterparty acknowledges and agrees that the Initial Shares delivered on the Initial Share Delivery Date may be sold short to Counterparty. Counterparty further acknowledges and agrees that GS&Co. may, during (i) the period from the date hereof to the Valuation Date or, if later, the Scheduled Earliest Acceleration Date without regard to any adjustment thereof pursuant to “Special Provisions regarding Transaction Announcements” below, and (ii) the period from and including the first Settlement Valuation Date to and including the last Settlement Valuation Date, if any (together, the “Relevant Period”), purchase Shares in connection with the Transaction, which Shares may be used to cover all or a portion of such short sale or may be delivered to Counterparty.  Such purchases will be conducted independently of Counterparty.  The timing of such purchases by GS&Co., the number of Shares purchased by GS&Co. on any day, the price paid per Share pursuant to such purchases and the manner in which such purchases are made, including without limitation whether such purchases are made on any securities exchange or privately, shall be within the absolute discretion of GS&Co..  It is the intent of the parties that the Transaction comply with the requirements of Rule 10b5-1(c)(1)(i)(B) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the parties agree that this Confirmation shall be interpreted to comply with the requirements of Rule 10b5-1(c), and Counterparty shall not take 

 

  

8

  

 

any action that results in the Transaction not so complying with such requirements.  Without limiting the generality of the preceding sentence, Counterparty acknowledges and agrees that (A) Counterparty does not have, and shall not attempt to exercise, any influence over how, when or whether GS&Co. effects any purchases of Shares in connection with the Transaction, (B) during the period beginning on (but excluding) the date of this Confirmation and ending on (and including) the last day of the Relevant Period, neither Counterparty nor its officers or employees shall, directly or indirectly, communicate (except pursuant to a public disclosure) any information regarding Counterparty or the Shares to any employee of GS&Co. or its Affiliates identified or known to them as being responsible for trading the Shares in connection with the transactions contemplated hereby, (C) Counterparty is entering into the Transaction in good faith and not as part of a plan or scheme to evade compliance with federal securities laws including, without limitation, Rule 10b-5 promulgated under the Exchange Act and (D) Counterparty will not alter or deviate from this Confirmation or enter into or alter a corresponding hedging transaction with respect to the Shares.  Counterparty also acknowledges and agrees that any amendment, modification, waiver or termination of this Confirmation must be effected in accordance with the requirements for the amendment or termination of a “plan” as defined in Rule 10b5-1(c) under the Exchange Act.  Without limiting the generality of the foregoing, any such amendment, modification, waiver or termination shall be made in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b-5 under the Exchange Act, and no such amendment, modification or waiver shall be made at any time at which Counterparty or any officer or director of Counterparty is aware of any material nonpublic information regarding Counterparty or the Shares.

 

(b)           Counterparty agrees that neither Counterparty nor any of its Affiliates or agents shall take any action that would cause Regulation M to be applicable to any purchases of Shares, or any security for which the Shares are a reference security (as defined in Regulation M), by Counterparty or any of its affiliated purchasers (as defined in Regulation M) during the Relevant Period.

 

(c)           Counterparty shall, at least one day prior to the first day of the Relevant Period, have notified GS&Co. of the total number of Shares purchased in Rule 10b-18 purchases of blocks pursuant to the once-a-week block exception contained in Rule 10b-18(b)(4) by or for Counterparty or any of its affiliated purchasers during each of the four calendar weeks preceding the first day of the Relevant Period and during the calendar week in which the first day of the Relevant Period occurs (“Rule 10b-18 purchase,” “blocks” and “affiliated purchaser” each being used as defined in Rule 10b-18), which notice shall be substantially in the form set forth as Appendix A hereto.

 

(d)           During the Relevant Period, Counterparty shall (i) notify GS&Co. prior to the opening of trading in the Shares on any day on which Counterparty makes, or expects to be made, any public announcement (as defined in Rule 165(f) under the Securities Act of 1933, as amended (the “Securities Act”)), of any merger, acquisition or similar transaction involving a recapitalization relating to Counterparty (other than any such transaction in which the consideration consists solely of cash and there is no valuation period), (ii) promptly notify GS&Co. following any such announcement that such announcement has been made and (iii) promptly deliver to GS&Co. following the making of any such announcement a certificate indicating (A) Counterparty’s average daily Rule 10b-18 purchases (as defined in Rule 10b-18) during the three full calendar months preceding the date of the announcement of such transaction and (B) Counterparty’s block purchases (as defined in Rule 10b-18) effected pursuant to paragraph (b)(4) of Rule 10b-18 during the three full calendar months preceding the date of the announcement of such transaction.  In addition, Counterparty shall promptly notify GS&Co. of the earlier to occur of the completion of such transaction and the completion of the vote by target shareholders.  Counterparty acknowledges that any such public announcement may result in a Regulatory Disruption and may cause the Relevant Period to be suspended.  Accordingly, Counterparty acknowledges that its actions in relation to any such announcement or transaction must comply with the standards set forth in Section 6(a) above.

 

(e)           Without the prior written consent of GS&Co., Counterparty shall not, and shall cause its Affiliates and affiliated purchasers (each as defined in Rule 10b-18) not to, directly or indirectly (including, without limitation, by means of a cash-settled or other derivative instrument) purchase, offer to purchase, place any bid or limit order that would effect a purchase of, or commence any tender offer relating to, any Shares (or an equivalent interest, including a unit of beneficial interest in a trust or limited partnership or a depository share) or any security convertible into or exchangeable for Shares during the Relevant Period.

 

7.             Representations and Agreements.

 

(a)           In addition to the representations and agreements in the Agreement and those contained elsewhere herein, Counterparty represents to and for the benefit of, and agrees with, GS&Co. as follows:

 

  

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(i)            As of the Trade Date, and as of the date of any election by Counterparty of the Share Termination Alternative under (and as defined in) Section 10(a) below, (A) none of Counterparty and its officers and directors is aware of any material nonpublic information regarding Counterparty or the Shares and (B) Counterparty’s most recent Annual Report on Form 10-K, together with all reports subsequently filed by it pursuant to the Exchange Act, taken together and as amended and supplemented to the date of this representation, do not, as of their respective filing dates, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

(ii)           Without limiting the generality of Section 13.1 of the Equity Definitions, Counterparty acknowledges that GS&Co. is not making any representations or taking any position or expressing any view with respect to the treatment of the Transaction under any accounting standards including ASC Topic 260, Earnings Per Share, ASC Topic 815, Derivatives and Hedging, or ASC Topic 480, Distinguishing Liabilities from Equity and ASC 815-40, Derivatives and Hedging – Contracts in Entity’s Own Equity (or any successor issue statements) or under FASB’s Liabilities & Equity Project.

 

(iii)          Without limiting the generality of Section 3(a)(iii) of the Agreement, the Transaction will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act.

 

(iv)          Prior to the Trade Date, Counterparty shall deliver to GS&Co. a resolution of Counterparty’s board of directors authorizing the Transaction and such other certificate or certificates as GS&Co. shall reasonably request.  Counterparty has publicly disclosed on October 21, 2010 its intention to institute a program for the acquisition of Shares.

 

(v)           Counterparty is not entering into this Confirmation to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for Shares) or otherwise in violation of the Exchange Act, and will not engage in any other securities or derivative transaction to such ends.

 

(vi)          Counterparty is not, and after giving effect to the transactions contemplated hereby will not be, required to register as an “investment company,” as such term is defined in the Investment Company Act of 1940, as amended.

 

(vii)         On the Trade Date, the Prepayment Date, the Initial Share Delivery Date and the Settlement Date, Counterparty is not, or will not be, “insolvent,” as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code), as amended (the “Bankruptcy Code”), and Counterparty would be able to purchase the Shares hereunder in compliance with the corporate laws of the jurisdiction of its incorporation.

 

(viii)        No state or local (including non-U.S. jurisdictions) law, rule, regulation or regulatory order applicable to the Shares would give rise to any reporting, consent, registration or other requirement (including without limitation a requirement to obtain prior approval from any person or entity) as a result of GS&Co. or its affiliates owning or holding (however defined) Shares.

 

(ix)          Counterparty shall not declare or pay any Dividend (as defined above) to holders of record as of any date occurring prior to the Settlement Date or, if the provisions of Annex A apply, the Cash Settlement Payment Date, other than an ordinary cash dividend of USD 0.33 or less per Share to holders of record on each of July 31, 2012 and October 31, 2012 (or, in each case, any later date within the same quarterly fiscal period of Counterparty).

 

(x)           Counterparty understands no obligations of GS&Co. to it hereunder will be entitled to the benefit of deposit insurance and that such obligations will not be guaranteed by any affiliate of GS&Co. or any governmental agency.

 

  

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(b)           Each of GS&Co. and Counterparty agrees and represents that it is an “eligible contract participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as amended.

 

(c)           Each party acknowledges that the offer and sale of the Transaction to it is intended to be exempt from registration under the Securities Act by virtue of Section 4(2) thereof.  Accordingly, Counterparty represents to the other that (i) it has the financial ability to bear the economic risk of its investment in the Transaction and is able to bear a total loss of its investment, (ii) it is an “accredited investor” as that term is defined in Regulation D as promulgated under the Securities Act, (iii) it is entering into the Transaction for its own account and without a view to the distribution or resale thereof, and (iv) the assignment, transfer or other disposition of the Transaction has not been and will not be registered under the Securities Act and is restricted under this Confirmation, the Securities Act and state securities laws.

 

(d)           Counterparty agrees and acknowledges that GS&Co. is a “financial institution,”  “swap participant” and “financial participant” within the meaning of Sections 101(22), 101(53C) and 101(22A) of the Bankruptcy Code.  The parties hereto further agree and acknowledge that it is the intent of the parties that (A) this Confirmation is (i) a “securities contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection herewith is a “termination value,” “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “settlement payment,” within the meaning of Section 546 of the Bankruptcy Code and (ii) a “swap agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection herewith is a “termination value,” “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “transfer,” as such term is defined in Section 101(54) of the Bankruptcy Code and a “payment or other transfer of property” within the meaning of Sections 362 and 546 of the Bankruptcy Code, and (B) GS&Co. is entitled to the protections afforded by, among other sections, Sections 362(b)(6), 362(b)(17), 362(o), 546(e), 546(g), 548(d)(2), 555, 560 and 561 of the Bankruptcy Code.

 

(e)           In addition to the representations and agreements in the Agreement and those contained elsewhere herein, GS&Co. represents to and for the benefit of, and agrees with, Counterparty as follows:

 

(i)            GS&Co. has implemented and will at all relevant times maintain reasonable policies and procedures, taking into consideration the nature of its business, to ensure that individuals making investment decisions on behalf of the GS&Co. related to the Transaction do not have access to material nonpublic information regarding Counterparty that may be in possession of other individuals at GS&Co..

 

(ii)           GS&Co. is not entering into this Confirmation to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for Shares) in violation of the Exchange Act, will not engage in any other securities or derivative transaction to such ends and will maintain such reasonable policies and procedures as are necessary to fulfill this clause during the period where such manipulation would constitute such a violation.

 

8.             Agreements and Acknowledgements Regarding Hedging.

 

Counterparty acknowledges and agrees that:

 

(a)           During the Relevant Period, GS&Co. and its Affiliates may buy or sell Shares or other securities or buy or sell options or futures contracts or enter into swaps or other derivative securities in order to adjust its hedge position with respect to the Transaction;

 

(b)           GS&Co. and its Affiliates also may be active in the market for Shares other than in connection with hedging activities in relation to the Transaction;

 

(c)           GS&Co. shall make its own determination as to whether, when or in what manner any hedging or market activities in Counterparty’s securities shall be conducted and shall do so in a manner that it deems appropriate to hedge its price and market risk with respect to the Settlement Price and/or the VWAP Price; and

 

  

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(d)           Any market activities of GS&Co. and its Affiliates with respect to Shares may affect the market price and volatility of Shares, as well as the Settlement Price and/or the VWAP Price, each in a manner that may be adverse to Counterparty.

 

9.             Special Provisions regarding Transaction Announcements.

 

(a)           If a Transaction Announcement occurs after the Trade Date but prior to the Scheduled Earliest Acceleration Date, the Scheduled Earliest Acceleration Date shall be adjusted to be the date of such Transaction Announcement.

 

(b)           “Transaction Announcement” means (i) the announcement of an Acquisition Transaction, (ii) an announcement that Counterparty or any of its subsidiaries has entered into an agreement, a letter of intent or an understanding to enter into an Acquisition Transaction, (iii) the announcement of an intention to solicit or enter into, or to explore strategic alternatives or other similar undertaking that may include, an Acquisition Transaction, or (iv) any other announcement that in the good faith reasonable judgment of the Calculation Agent may result in an Acquisition Transaction.  For the avoidance of doubt, announcements as used in this definition of Transaction Announcement refer to any public announcement whether made by the Issuer or a third party.

 

“Acquisition Transaction” means (i) any Merger Event (and for purposes of this definition the definition of Merger Event shall be read with the references therein to “100%” being replaced by “25%” and to “50%” by “75%” and  as if the clause beginning immediately following the definition of Reverse Merger therein to the end of such definition were deleted) or Tender Offer, or any other transaction, in each case, involving the merger of Counterparty with or into any third party, (ii) the sale or transfer of all or substantially all of the assets of Counterparty, (iii) a recapitalization, reclassification, binding share exchange or other similar transaction of Counterparty, (iv) any acquisition, lease, exchange, transfer, disposition (including by way of spin-off or distribution) of assets (including any capital stock or other ownership interests in subsidiaries) or other similar event by Counterparty or any of its subsidiaries where the aggregate consideration transferable or receivable by or to Counterparty or its subsidiaries exceeds 25% of the market capitalization of Counterparty and (v) any transaction in which Counterparty or its board of directors has a legal obligation to make a recommendation to its shareholders in respect of such transaction (whether pursuant to Rule 14e-2 under the Exchange Act or otherwise).

 

10.           Other Provisions.

 

(a)           Alternative Calculations and Payment on Early Termination and on Certain Extraordinary Events.  If either party would owe the other party any amount pursuant to Sections 12.2, 12.3, 12.6, 12.7 or 12.9 of the Equity Definitions or pursuant to Section 6(d)(ii) of the Agreement (a “Payment Obligation”), Counterparty shall have the right, in its sole discretion, to satisfy or to require GS&Co. to satisfy, as the case may be, any such Payment Obligation, in whole or in part, by the Share Termination Alternative (as defined below) by giving irrevocable telephonic notice to GS&Co., confirmed in writing within one Scheduled Trading Day, no later than 9:30 A.M., New York City time, on the Merger Date, Tender Offer Date, Announcement Date, Early Termination Date or date of cancellation or termination in respect of an Extraordinary Event, as applicable (“Notice of Share Termination”); provided that if GS&Co. would owe Counterparty the Payment Obligation and Counterparty does not elect to require GS&Co. to satisfy such Payment Obligation by the Share Termination Alternative in whole, GS&Co. shall have the right, in its sole discretion, to elect to satisfy any portion of such Payment Obligation that Counterparty has not so elected by the Share Termination Alternative, notwithstanding Counterparty’s failure to elect or election to the contrary; and provided further that Counterparty shall not have the right to so elect (but, for the avoidance of doubt, GS&Co. shall have the right to so elect) in the event of (i) an Insolvency, a Nationalization, a Merger Event or a Tender Offer, in each case, in which the consideration or proceeds to be paid to holders of Shares consists solely of cash or (ii) an Event of Default in which Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the sole Affected Party, which Event of Default or Termination Event resulted from an event or events within Counterparty’s control.  Upon such Notice of Share Termination, the following provisions shall apply on the Scheduled Trading Day immediately following the Merger Date, Tender Offer Date, Announcement Date, Early Termination Date or date of cancellation or termination in respect of an Extraordinary Event, as applicable, with respect to the Payment Obligation or such portion of the Payment Obligation for which the Share Termination Alternative has been elected (the “Applicable Portion”):

 

  

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Share Termination Alternative:

	
Applicable and means, if delivery pursuant to the Share Termination Alternative is owed by GS&Co., that GS&Co. shall deliver to Counterparty the Share Termination Delivery Property on the date on which the Payment Obligation would otherwise be due pursuant to Section 12.7 or 12.9 of the Equity Definitions or Section 6(d)(ii) of the Agreement, as applicable, or such later date as the Calculation Agent may determine (the “Share Termination Payment Date”), in satisfaction of the Payment Obligation or the Applicable Portion, as the case may be. If delivery pursuant to the Share Termination Alternative is owed by Counterparty, paragraphs 2 through 5 of Annex A shall apply as if such delivery were a settlement of the Transaction to which Net Share Settlement (as defined in Annex A) applied, the Cash Settlement Payment Date were the Early Termination Date, the Forward Cash Settlement Amount were zero (0) minus the Payment Obligation (or the Applicable Portion, as the case may be) owed by Counterparty, and “Shares” as used in Annex A were replaced by “Share Termination Delivery Units.”

 

	

Share Termination Delivery Property:

	
A number of Share Termination Delivery Units, as calculated by the Calculation Agent, equal to the Payment Obligation (or the Applicable Portion, as the case may be) divided by the Share Termination Unit Price.  The Calculation Agent shall adjust the Share Termination Delivery Property by replacing any fractional portion of a security therein with an amount of cash equal to the value of such fractional security based on the values used to calculate the Share Termination Unit Price.

 

	
Share Termination Unit Price:

	
The value of property contained in one Share Termination Delivery Unit on the date such Share Termination Delivery Units are to be delivered as Share Termination Delivery Property, as determined by the Calculation Agent in its good faith discretion by commercially reasonable means and notified by the Calculation Agent to the parties at the time of notification of the Payment Obligation.

 

	
Share Termination Delivery Unit:

	
In the case of a Termination Event, Event of Default, Delisting or Additional Disruption Event, one Share or, in the case of an Insolvency, Nationalization, Merger Event or Tender Offer, one Share or a unit consisting of the number or amount of each type of property received by a holder of one Share (without consideration of any requirement to pay cash or other consideration in lieu of fractional amounts of any securities) in such Insolvency, Nationalization, Merger Event or Tender Offer.  If such Insolvency, Nationalization, Merger Event or Tender Offer involves a choice of consideration to be received by holders, such holder shall be deemed to have elected to receive the maximum possible amount of cash.

 

	
Failure to Deliver:

	
Applicable

 

	
Other applicable provisions:

	
If Share Termination Alternative is applicable, the provisions of Sections 9.8, 9.9, 9.10, 9.11 (except that the Representation and Agreement contained in Section 9.11 of the Equity Definitions shall be modified by excluding any representations therein relating to restrictions, obligations, limitations or requirements under applicable securities laws arising as a result of the fact that Counterparty is the issuer of the Shares or any portion of the Share Termination Delivery Units) and 9.12 of the Equity Definitions will be applicable as if “Physical Settlement” applied to the Transaction, except that all references to “Shares” shall be read as references to “Share Termination Delivery Units”.

 

(b)           Equity Rights.  GS&Co. acknowledges and agrees that this Confirmation is not intended to convey to it rights with respect to the Transaction that are senior to the claims of common stockholders in the event of Counterparty’s bankruptcy.  For the avoidance of doubt, the parties agree that the preceding sentence shall not apply at any time other than during Counterparty’s bankruptcy to any claim arising as a result of a breach by Counterparty of any of its obligations under this Confirmation or the Agreement.  For the avoidance of doubt, the parties acknowledge that this 

 

  

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Confirmation is not secured by any collateral that would otherwise secure the obligations of Counterparty herein under or pursuant to any other agreement.

 

(c)           Indemnification.  In the event that GS&Co. or the Calculation Agent or any of their Affiliates becomes involved in any capacity in any action, proceeding or investigation brought by or against any person in connection with any matter referred to in this Confirmation, Counterparty shall reimburse GS&Co. or the Calculation Agent or such Affiliate for its reasonable legal and other out-of-pocket expenses (including the reasonable cost of any investigation and preparation) incurred in connection therewith within 30 days of receipt of notice of such expenses, and shall indemnify and hold GS&Co. or the Calculation Agent or such Affiliate harmless on an after-tax basis against any losses, claims, damages or liabilities to which GS&Co. or the Calculation Agent or such Affiliate may become subject in connection with any such action, proceeding or investigation.  If for any reason the foregoing indemnification is unavailable to GS&Co. or the Calculation Agent or such Affiliate or insufficient to hold it harmless, then Counterparty shall contribute to the amount paid or payable by GS&Co. or the Calculation Agent or such Affiliate as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by Counterparty on the one hand and GS&Co. or the Calculation Agent or such Affiliate on the other hand in the matters contemplated by this Confirmation or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits received by Counterparty on the one hand and GS&Co. or the Calculation Agent or such Affiliate on the other hand in the matters contemplated by this Confirmation but also the relative fault of Counterparty and GS&Co. or the Calculation Agent or such Affiliate with respect to such losses, claims, damages or liabilities and any other relevant equitable considerations.  The relative benefits received by Counterparty, on the one hand, and GS&Co. or the Calculation Agent or such Affiliate, on the other hand, shall be in the same proportion as the Prepayment Amount bears to the customary brokerage commission for share repurchases multiplied by the Initial Shares.  The reimbursement, indemnity and contribution obligations of Counterparty under this Section 10(c) shall be in addition to any liability that Counterparty may otherwise have, shall extend upon the same terms and conditions to the partners, directors, officers, agents, employees and controlling persons (if any), as the case may be, of GS&Co. or the Calculation Agent and their Affiliates and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of Counterparty, GS&Co. or the Calculation Agent, any such Affiliate and any such person.  Counterparty also agrees that neither GS&Co., the Calculation Agent nor any of such Affiliates, partners, directors, officers, agents, employees or controlling persons shall have any liability to Counterparty for or in connection with any matter referred to in this Confirmation except to the extent that any losses, claims, damages, liabilities or expenses incurred by Counterparty result from the gross negligence or bad faith of GS&Co. or the Calculation Agent or a breach by GS&Co. or the Calculation Agent of any of its covenants, representations or obligations hereunder.  Notwithstanding the foregoing, in no event shall Counterparty have any obligation or liability hereunder to reimburse, indemnify or hold harmless, or so contribute to, GS&Co., the Calculation Agent (if GS&Co.) or any of their respective Affiliates (including any of their respective partners, directors, officers, agents, employees and controlling persons) for any such expenses, losses, claims, damages or liabilities to the extent arising from the gross negligence, bad faith or willful misconduct on the part of GS&Co., the Calculation Agent (if GS&Co.) or any of their respective Affiliates (including any of their respective partners, directors, officers, agents, employees and controlling persons) or from a breach by GS&Co. or the Calculation Agent (if GS&Co.) of any of its covenants, representations or obligations hereunder.  The foregoing provisions shall survive any termination or completion of the Transaction.

 

(d)           Staggered Settlement.  If GS&Co. would owe Counterparty any Shares pursuant to the “Settlement Terms” above, GS&Co. may, by notice to Counterparty on or prior to the Settlement Date (a “Nominal Settlement Date”), elect to deliver the Shares deliverable on such Nominal Settlement Date on two or more dates (each, a “Staggered Settlement Date”) or at two or more times on the Nominal Settlement Date as follows: (i) in such notice, GS&Co. will specify to Counterparty the related Staggered Settlement Dates (each of which will be on or prior to such Nominal Settlement Date) or delivery times and how it will allocate the Shares it is required to deliver under “Settlement Terms” above among the Staggered Settlement Dates or delivery times; and (ii) the aggregate number of Shares that GS&Co. will deliver to Counterparty hereunder on all such Staggered Settlement Dates and delivery times will equal the number of Shares that GS&Co. would otherwise be required to deliver on such Nominal Settlement Date.

 

(e)           Adjustments.  For the avoidance of doubt, whenever the Calculation Agent is called upon to make an adjustment pursuant to the terms of this Confirmation or the Definitions to take into account the effect of an event, the Calculation Agent shall make such adjustment by reference to the effect of such event on the Hedging Party, assuming that the Hedging Party maintains a commercially reasonable hedge position.

 

  

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(f)            Transfer and Assignment.  Neither party may transfer or assign any of its rights or obligations under the Transaction without the prior written consent of the other party, such consent not to be unreasonably withheld or delayed; provided, however, that GS&Co. may transfer or assign, without any consent of Counterparty, its rights and obligations hereunder and under the Agreement, in whole or in part, to any of its affiliated entities of reasonably equivalent credit quality as GS&Co., but only if (i) Counterparty will not be required to pay to the assignee an amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) of the Agreement (except in respect of interest under Section 6(d)(ii), 6(e) or 9(h)(i)(1) of the Agreement) greater than the amount in respect of which Counterparty would have been required to pay to GS&Co. in the absence of such assignment; (ii) Counterparty will not receive a payment from which an amount has been withheld or deducted, on account of a Tax under Section 2(d)(i) of the Agreement (except in respect of interest under Section 2(d), 6(d)(ii) or 6(e) of the Agreement), in excess of that which GS&Co. would have been required to so withhold or deduct in the absence of such assignment, unless the assignee will be required to make additional payments pursuant to Section 2(d)(i)(4) of the Agreement in respect of such excess; (iii) Counterparty will not otherwise suffer material adverse tax consequences from such transfer or assignment; (iv) immediately upon giving effect to such transfer, no Event of Default, no Potential Event of Default and no Termination Event will have occurred as a result thereof; and (v) GS&Co. shall have caused the transferee to make such Payee Tax Representations and to provide such tax documentation as may be reasonably requested by Counterparty to permit Counterparty to determine that results described in clauses (i) and (ii) will not occur upon or after such transfer and assignment.

 

(g)           Tax Form Deliverables.  GS&Co. will provide to Counterparty upon execution hereof a correct, complete and executed Internal Revenue Service (“IRS”) Form W-9 or applicable IRS Form W-8 as appropriate.

 

(h)           Additional Termination Event.  It shall constitute an Additional Termination Event with respect to which the Transaction is the sole Affected Transaction and Counterparty is the sole Affected Party and GS&Co. shall be the party entitled to designate an Early Termination Date pursuant to Section 6(b) of the Agreement if and so long as, at any time during the Relevant Period, the closing price per Share on the Exchange for any two consecutive Exchange Business Days is below the Threshold Price (as provided in Annex B to this Confirmation).  In such case, GS&Co. may, by not more than 10 Exchange Business Days notice to Counterparty and notwithstanding any subsequent closing price of the Shares on the Exchange, designate a day not earlier than the day such notice is effective as the “Early Termination Date” for purposes of the Agreement.

 

(i)            In respect of any Event of Default, Termination Event or Additional Disruption Event affording either party (the “Party with the Right”) the right to cancel or terminate the Transaction, notwithstanding anything in the Agreement or the Equity Definitions to the contrary, the Party with the Right shall have 20 Exchange Business Days following notice from the other party of such event to make its election to cancel or terminate the Transaction. If, with respect to any condition or event constituting such Event of Default, Termination Event or Additional Disruption Event, the Party with the Right has not made such election in such time, then the Party with the Right’s right to cancel or terminate in respect of such condition or event shall have been waived, and the condition under Section 2(a)(iii) of the Agreement shall not apply with respect to such condition or event (but only with respect to such condition or event).

 

(j)            Amendments to Equity Definitions.  The following amendments shall be made to the Equity Definitions:

 

(i)            Section 11.2(a) of the Equity Definitions is hereby amended by deleting the words “a diluting or concentrative effect on the theoretical value of the relevant Shares” and replacing them with the words “an effect on the volatility, expected dividends, stock loan rate or liquidity relative to the relevant Shares”;

 

(ii)           The first sentence of Section 11.2(c) of the Equity Definitions, prior to clause (A) thereof, is hereby amended to read as follows: ‘(c) If “Calculation Agent Adjustment” is specified as the Method of Adjustment in the related Confirmation of a Share Option Transaction or Share Forward Transaction, then following the announcement or occurrence of any Potential Adjustment Event, the Calculation Agent will determine whether such Potential Adjustment Event has an effect on the volatility, expected dividends, stock loan rate or liquidity relative to the relevant Shares and, if so, will (i) make appropriate adjustment(s), if any, to any one or more of:’ and the portion of such sentence immediately preceding clause (ii) thereof is hereby amended by deleting the words “diluting or concentrative” and the words “(provided that no adjustments will be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity relative to the relevant Shares)” and replacing such latter phrase with the words “(and, for the avoidance of doubt, adjustments may be made to account solely for changes in volatility, stock loan rate or liquidity relative to the relevant Shares, except 

  

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that, in the case of the stock split declared or announced by Counterparty on February 15, 2012, no such adjustment may be made to account for changes in volatility, stock loan rate or liquidity relative to the relevant   Shares)”;

 

(iii)          Section 11.2(e)(vii) of the Equity Definitions is hereby amended by deleting the words “diluting or concentrative effect on the theoretical value of the relevant Shares” and replacing them with the words “effect on the volatility, expected dividends, stock loan rate or liquidity relative to the relevant Shares”;

 

(iv)          Section 12.6(a)(ii) of the Equity Definitions is hereby amended by (1) deleting from the fourth line thereof the word “or” after the word “official” and inserting a comma therefor, and (2) deleting the semi-colon at the end of subsection (B) thereof and inserting the following words therefor “or (C) the occurrence of any of the events specified in Section 5(a)(vii)(1) and (3) through (8) of the ISDA Master Agreement with respect to that issuer”; and

 

(v)           Section 12.9(b)(iv) of the Equity Definitions is hereby amended by (A) deleting (1) subsection (A) in its entirety, (2) the phrase “or (B)” following subsection (A) and (3) the phrase “in each case” in subsection (B); and (B) deleting the phrase “neither the Non-Hedging Party nor the Lending Party lends Shares in the amount of the Hedging Shares or” in the penultimate sentence.

 

(k)           No Netting and Set-off.  Each party waives any and all rights it may have to set off obligations arising under the Agreement and the Transaction against other obligations between the parties, whether arising under any other agreement, applicable law or otherwise.

 

(l)            Disclosure.  Effective from the date of commencement of discussions concerning the Transaction, Counterparty and each of its employees, representatives, or other agents may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the Transaction and all materials of any kind (including opinions or other tax analyses) that are provided to Counterparty relating to such tax treatment and tax structure.

 

(m)          Designation by GS&Co..  Notwithstanding any other provision in this Confirmation to the contrary requiring or allowing GS&Co. to purchase, sell, receive or deliver any Shares or other securities to or from Counterparty, GS&Co. (the “Designator”) may designate any of its Affiliates (the “Designee”) to deliver or take delivery, as the case may be, and otherwise perform its obligations to deliver, if any, or take delivery of, as the case may be, any such Shares or other securities in respect of the Transaction, and the Designee may assume such obligations, if any.  Such designation shall not relieve the Designator of any of its obligations, if any, hereunder. Notwithstanding the previous sentence, if the Designee shall have performed the obligations, if any, of the Designator hereunder, then the Designator shall be discharged of its obligations, if any, to Counterparty to the extent of such performance.

 

(n)           Termination Currency.  The Termination Currency shall be USD.

 

(o)           Waiver of Trial by Jury.  EACH OF COUNTERPARTY AND GS&CO. HEREBY IRREVOCABLY WAIVES (ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTION OR THE ACTIONS OF GS&CO. OR ITS AFFILIATES IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.

 

(p)           Governing Law; Jurisdiction.  THIS CONFIRMATION AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.  THE PARTIES HERETO IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT LOCATED IN THE BOROUGH OF MANHATTAN IN NEW YORK CITY IN CONNECTION WITH ALL MATTERS RELATING HERETO AND WAIVE ANY OBJECTION TO THE LAYING OF VENUE IN, THE JUSRIDICTION OF, AND ANY CLAIM OF INCONVENIENT FORUM WITH RESPECT TO THESE COURTS.

 

  

16

  

 

(q)           No Condition of Confidentiality.  GS&Co. and Counterparty hereby acknowledge and agree that GS&Co. has authorized Counterparty to disclose this Agreement  and the transactions contemplated hereby to any and all persons, and there are no express or implied agreements, arrangements or understandings to the contrary, and GS&Co. hereby waives any and all claims to any proprietary rights with respect to this Agreement and the transactions contemplated hereby, and authorizes Counterparty to use any information that Counterparty receives or has received with respect to this Agreement and the transactions contemplated hereby in any manner.

 

  

17

  

 

Please confirm your agreement to be bound by the terms stated herein by executing the copy of this Confirmation enclosed for that purpose and returning it to us by mail or facsimile transmission to the address for Notices indicated above.

 

	 	
Yours sincerely,

	 
	 	 	 
	 	
GOLDMAN, SACHS & CO.

	 
	 	 	 	 
	
 

	
By: 

	_______________________________	 
	 	Name 	 	 
	 	Title 	 	 

 

	 	Confirmed as of the date first above written:
	 	 
	 	
ONEOK, Inc.

	 	 
	 	
By:      _______________________________

	 	
Name:

	 	
Title:

 

  

  

  

APPENDIX A

[Counterparty Letterhead]

 

 

	Goldman, Sachs & Co.
	
200 West Street

	
New York, NY 10282-2198

	
Attn:

 

Re:           Issuer Forward Repurchase Transaction

 

Ladies and Gentlemen:

 

In connection with our entry into a confirmation between you and us dated as of June 11, 2012 (the “Confirmation”), we hereby represent that set forth below is the total number of shares of our common stock purchased by or for us or any of our affiliated purchasers in Rule 10b-18 purchases of blocks pursuant to the once-a-week block exception contained in Rule 10b-18(b)(4) (all defined in Rule 10b-18 under the Securities Exchange Act of 1934, as amended) during the four full calendar weeks immediately preceding the first day of the Relevant Period (as defined in the Confirmation) and the week during which the first day of the Relevant Period occurs:

 

	  	
Monday’s

Date

	
Friday’s

Date

	
Share

Number

	
Week 4:

	  	  	  
	
Week 3:

	  	  	  
	
Week 2:

	  	  	  
	
Week 1:

	  	  	  
	
Current Week:

	  	  	
 

We understand that you will use this information in calculating trading volume for purposes of Rule 10b-18.

 

	 	
Very truly yours,

	 
	 	 	 
	 	
ONEOK, Inc.

	 
	 	 	 
	 	 	 
	 	
By: 

	 	 
	 	 	Name 	 
	 	 	Title	 
	 	 	 	 

 

  

  

  

 

ANNEX A

 

COUNTERPARTY SETTLEMENT PROVISIONS

 

1.             The following Counterparty Settlement Provisions shall apply to the extent indicated under the Confirmation:

 

	
  

	
Settlement Currency:

	
USD

 

	
  

	

Settlement Method Election:

	
Applicable; provided that (i) Section 7.1 of the Equity Definitions is hereby amended by deleting the word “Physical” in the sixth line thereof and replacing it with the words “Net Share” and (ii) the Electing Party may make a settlement method election only if the Electing Party represents to GS&Co. in writing on the date it notifies GS&Co. of its election that, as of such date, (A) none of Counterparty and its officers and directors is aware of any material nonpublic information regarding Counterparty or the Shares and (B) Counterparty is electing the settlement method in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws.

 

	
  

	
Electing Party:

	
Counterparty

 

	 	
Settlement Method

	
 

	 	

Election Date:

	
The date 10 Exchange Business Days prior to the Valuation Date; provided that if GS&Co. accelerates the Final Averaging Date pursuant to the proviso to the definition of Final Averaging Date, the Settlement Method Election Date shall be the second Exchange Business Day immediately following the Valuation Date.

 

	 	
Default Settlement Method:

	

Cash Settlement

 

	
  

	
Special Settlement:

	
Either (i) a settlement to which this Annex A applies that follows the occurrence of a Transaction Announcement to which Section 9 of this Confirmation applies or (ii) any settlement to which paragraphs 2 through 5 of this Annex A apply that follows a termination or cancellation of the Transaction pursuant to Section 6 of the Agreement or Article 12 of the Equity Definitions to which Section 10(a) of this Confirmation applies.

 

	 	

Forward Cash Settlement

	

 

	 	

Amount:

	

The Number of Shares to be Delivered multiplied by the Settlement Valuation Price.

 

	 	
Settlement Valuation Price:

	

The arithmetic average of the VWAP Prices for all Settlement Valuation Dates, subject to Averaging Date Disruption, determined as if each Settlement Valuation Date were an Averaging Date (with Averaging Date Disruption applying as if the last Settlement Valuation Date were the Final Averaging Date and the Settlement Valuation Price were the Settlement Price).

 

	 	
Settlement Valuation Dates:

	

A number of Scheduled Trading Days selected by GS&Co. in its good faith, commercially reasonable discretion, beginning on the Scheduled Trading Day immediately following the later of the Settlement Method Election Date and the Final Averaging Date.

 

	 	
Cash Settlement:

	

If Cash Settlement is applicable, then Counterparty shall pay to GS&Co. the absolute value of the Forward Cash Settlement Amount on the Cash Settlement Payment Date.

 

	 	

Cash Settlement

	

 

	 	

Payment Date:

	

The date one Settlement Cycle following the last Settlement Valuation Date.

 

	 	

Net Share Settlement 

	

 

 

  

A- 1

  

 

	 	

Procedures:

	

If Net Share Settlement is applicable, Net Share Settlement shall be made in accordance with paragraphs 2 through 5 below.

 

2.             Net Share Settlement shall be made by delivery on the Settlement Date of a number of Shares equal to the product of 102% and the absolute value of the Number of Shares to be Delivered; provided that in the case of a Special Settlement, Net Share Settlement shall be made (i) by delivery on the Cash Settlement Payment Date (such date, the “Net Share Settlement Date”) of a number of Shares (the “Restricted Payment Shares”) with a value equal to the absolute value of the Forward Cash Settlement Amount, with such Shares’ value based on the realizable market value thereof to GS&Co. (which value shall take into account an illiquidity discount resulting from the fact that the Restricted Payment Shares will not be registered for resale), as determined by the Calculation Agent (the “Restricted Share Value”), and paragraph 3 of this Annex A shall apply to such Restricted Payment Shares, and (ii) by delivery of the Make-Whole Payment Shares as described in paragraph 4 below.

 

3.             (a)           All Restricted Payment Shares and Make-Whole Payment Shares shall be delivered to GS&Co. (or any affiliate of GS&Co. designated by GS&Co.) pursuant to the exemption from the registration requirements of the Securities Act provided by Section 4(2) thereof.

 

(b)           As of or prior to the date of delivery, GS&Co. and any potential purchaser of any such Shares from GS&Co. (or any affiliate of GS&Co. designated by GS&Co.) identified by GS&Co. shall be afforded a commercially reasonable opportunity to conduct a due diligence investigation with respect to Counterparty customary in scope for private placements, of similar size, of equity securities (including, without limitation, the right to have made available to them for inspection all financial and other records, pertinent corporate documents and other information reasonably requested by them); provided that, prior to receiving or being granted access to any such information, any such potential purchaser may be required by Counterparty to enter into a customary nondisclosure agreement with Counterparty in respect of any such due diligence investigation.

 

(c)           As of the date of delivery, Counterparty shall enter into an agreement (a “Private Placement Agreement”) with GS&Co. (or any affiliate of GS&Co. designated by GS&Co.) in connection with the private placement of such Shares by Counterparty to GS&Co. (or any such affiliate) and the private resale of such shares by GS&Co. (or any such affiliate), substantially similar to private placement purchase agreements customary for private placements of equity securities, in form and substance commercially reasonably satisfactory to GS&Co., which Private Placement Agreement shall include, without limitation, provisions substantially similar to those contained in such private placement purchase agreements relating to the indemnification of, and contribution in connection with the liability of, GS&Co. and its affiliates, and shall provide for the payment by Counterparty of all reasonable fees and actual, documented out-of-pocket expenses in connection with such resale, including all reasonable fees and actual, documented out-of-pocket expenses of counsel for GS&Co., and shall contain representations, warranties and agreements of Counterparty reasonably necessary or advisable to establish and maintain the availability of an exemption from the registration requirements of the Securities Act for such resales.

 

(d)           Neither GS&Co. nor Counterparty shall take or cause to be taken any action that would make unavailable either (i) the exemption set forth in Section 4(2) of the Securities Act for the sale of any Restricted Payment Shares or Make-Whole Payment Shares by Counterparty to GS&Co. or (ii) an exemption from the registration requirements of the Securities Act reasonably acceptable to GS&Co. for resales of Restricted Payment Shares and Make-Whole Payment Shares by GS&Co. (or an affiliate of GS&Co.).

 

(e)           Counterparty expressly agrees and acknowledges that the public disclosure of all material information relating to Counterparty is within Counterparty’s control.

 

4.             If Restricted Payment Shares are delivered in accordance with paragraph 3 above, on the last Settlement Valuation Date, a balance (the “Settlement Balance”) shall be established with an initial balance equal to the absolute value of the Forward Cash Settlement Amount.  Following the delivery of Restricted Payment Shares or any Make-Whole Payment Shares, GS&Co. shall sell all such Restricted Payment Shares or Make-Whole Payment Shares in a commercially reasonable manner.  At the end of each Exchange Business Day upon which sales have been made, the Settlement Balance shall be reduced by an amount equal to the aggregate proceeds received by GS&Co. or its affiliate upon the sale of such Restricted Payment Shares or Make-Whole Payment Shares, less a customary and commercially reasonable private placement fee for private placements of common stock by similar issuers.  If, on any Exchange 

 

  

A- 2

  

 

Business Day, all Restricted Payment Shares and Make-Whole Payment Shares have been sold and the Settlement Balance has not been reduced to zero, Counterparty shall (i) deliver to GS&Co. or as directed by GS&Co. one Settlement Cycle following such Exchange Business Day an additional number of Shares (the “Make-Whole Payment Shares” and, together with the Restricted Payment Shares, the “Payment Shares”) equal to (x) the Settlement Balance as of such Exchange Business Day divided by (y) the Restricted Share Value of the Make-Whole Payment Shares as of such Exchange Business Day or (ii) promptly deliver to GS&Co. cash in an amount equal to the then remaining Settlement Balance.  This provision shall be applied successively until either the Settlement Balance is reduced to zero or the aggregate number of Restricted Payment Shares and Make-Whole Payment Shares equals the Maximum Deliverable Number. If on any Exchange Business Day, Restricted Payment Shares and Make-Whole Payment Shares remain unsold and the Settlement Balance has been reduced to zero, GS&Co. shall promptly return such unsold Restricted Payment Shares or Make-Whole Payment Shares.

 

5.             Notwithstanding the foregoing, in no event shall Counterparty be required to deliver more than the Maximum Deliverable Number of Shares hereunder.  “Maximum Deliverable Number” means the number of Shares set forth as such in Annex B to this Confirmation.  Counterparty represents to GS&Co. (which representation shall be deemed to be repeated on each day from the date hereof to the Settlement Date or, if Counterparty has elected to deliver any Payment Shares hereunder in connection with a Special Settlement, to the date on which resale of such Payment Shares is completed (the “Final Resale Date”)) that the Maximum Deliverable Number is equal to or less than the number of authorized but unissued Shares of Counterparty that are not reserved for future issuance in connection with transactions in such Shares (other than the transactions under this Confirmation) on the date of the determination of the Maximum Deliverable Number (such Shares, the “Available Shares”).  In the event Counterparty shall not have delivered the full number of Shares otherwise deliverable as a result of this paragraph 5 (the resulting deficit, the “Deficit Shares”), Counterparty shall be continually obligated to deliver, from time to time until the full number of Deficit Shares have been delivered pursuant to this paragraph, Shares when, and to the extent that, (i) Shares are repurchased, acquired or otherwise received by Counterparty or any of its subsidiaries after the date hereof (whether or not in exchange for cash, fair value or any other consideration), (ii) authorized and unissued Shares reserved for issuance in respect of other transactions prior to such date which prior to the relevant date become no longer so reserved or (iii) Counterparty additionally authorizes any unissued Shares that are not reserved for other transactions.  Counterparty shall immediately notify GS&Co. of the occurrence of any of the foregoing events (including the number of Shares subject to clause (i), (ii) or (iii) and the corresponding number of Shares to be delivered) and promptly deliver such Shares thereafter.

 

 

A- 3

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