Document:

ex10-1.htm

EXECUTIVE SERVICES AGREEMENT

THIS EXECUTIVE SERVICES AGREEMENT (the “Agreement”) is entered into this 17th day of May, 2011 (the “Commencement Date”), between Phototron Holdings, Inc., a Delaware corporation (the “Company”), and Douglas Braun (“Executive”).

WHEREAS, the parties desire to enter into this Agreement setting forth the terms and conditions for the Company’s engagement of Executive’s services.

NOW, THEREFORE, in consideration of the promises and mutual covenants and agreements herein contained and intending to be legally bound hereby, the parties hereby agree as follows:

1.           Term.  Subject to the termination provisions of Section 8 below, the term of this Agreement shall be three (3) years (“Term”), commencing on the Commencement Date and ending immediately prior to the third (3rd) anniversary of the Commencement Date (the “Termination Date”).

2.           Engagement.

2.1           Consulting Services.  The Company hereby engages Executive to provide consulting and management services to the Company relating to the functions of Chief Executive Officer of the Company and President and Chief Executive Officer of Growlife, Inc., a Delaware corporation and wholly-owned subsidiary of the Company (“Growlife”), from the close of business on May 17, 2011 until May 31, 2011.

2.2           Employment.  Commencing on June 1, 2011, the Company shall employ Executive on a full-time basis as the Chief Executive Officer of the Company and as the President and Chief Executive Officer of Growlife.

2.3           Duties.  During the Term Executive will have the full range of executive duties and responsibilities that are customary for president and chief executive officer positions and shall be obligated to devote all of his professional and business-related time, skills and best efforts to the business and affairs of the Company and its subsidiaries.  Executive shall report to and take direction from the Company’s Board of Directors.

3.           Compensation.

 

3.1           Salary.  Upon Executive’s employment by the Company, the Company shall pay Executive an annual salary of $150,000 (the “Base Salary”). Such Base Salary shall increase to the annual rate of $180,000 on the first day of the month following the month in which Growlife’s gross monthly retail sales reach $500,000, and $250,000 on the earlier of (i) the first day of the month following the month in which Growlife’s gross monthly retail sales reach $750,000 and (ii) January 1, 2012.  The Base Salary shall be payable by the Company to Executive in accordance with the Company’s standard payroll practices. 

 

3.2           Adjustments.  Participation in deferred compensation, discretionary bonus, retirement, stock incentive and other benefit plans and in fringe benefits shall not reduce the Base Salary; provided, however, that voluntary deferrals or contributions to such plans shall reduce the current cash compensation paid to Executive but shall not reduce the Base Salary hereunder.

 

  

  

  

 

4.           Bonus.  Executive shall be entitled to receive an annual cash bonus (“Bonus”) as follows:

4.1           One hundred seventy-five percent (175%) of the Base Salary in effect as of December 31 of the Company’s applicable fiscal year, if Growlife achieves one hundred percent (100%) of sales projections for such fiscal year;

4.2           One hundred percent (100%) of the Base Salary in effect as of December 31 of the Company’s applicable fiscal year, if Growlife achieves at least eighty percent (80%) but less than one hundred percent (100%) of sales projections for such fiscal year; and

4.3           Fifty percent (50%) of the Base Salary in effect as of December 31 of the Company’s applicable fiscal year, if Growlife achieves at least fifty percent (50%) but less than eighty percent (80%) of sales projections for such fiscal year.

The Bonus, if any, shall be paid to Executive upon the earlier of (1) the completion of the preparation of the Company’s audited financial statements for such fiscal year and (2) April 1 of the Company’s next fiscal year.

5.           Benefits.

5.1           Options.  Executive shall participate in the Company’s 2011 Stock Incentive Plan (the “Plan”) as follows:

(a)           Executive shall receive, upon approval by the Company’s Board of Directors, non-qualified options under the Plan to purchase 4,500,000 shares of the Company’s common stock, at a per share exercise price equal to the fair market value of one share of the Company’s common stock on the date of grant, vesting in twenty-four (24) equal monthly installments on the last day of each month commencing from and after May 31, 2011.  Except as provided herein, the terms of the options shall be as provided in the Plan and in the Company’s standard form of stock option agreement for non-qualified options.

(b)           Executive shall also be eligible for subsequent option grants under the Plan during the Term as determined by the Company’s Board of Directors.

5.2           Life Insurance.  The Company shall apply for and obtain “term” life insurance upon the life of Executive, effective as of January 1, 2012, in an amount equal to Executive’s then current Base Salary.  The beneficiary of such policy shall be the person(s) designated by Executive.  Executive agrees to reasonably assist and reasonably cooperate with the Company in procuring such insurance, including (without limitation) submitting to medical examinations for purposes of obtaining and/or maintaining such insurance.

5.3           Housing.  During Executive’s term of employment hereunder, the Company shall provide to Executive a monthly housing stipend of $750.  In the event that the Company and Executive mutually agree to Executive’s relocation to Los Angeles County, California, the Company shall pay Executive’s reasonable relocation costs and shall pay for reasonable temporary housing for Executive and his family for a period of three (3) months.

5.4           Vacation.  During Executive’s term of employment hereunder, Executive shall be entitled to four (4) weeks of paid vacation in each calendar year, accruing ratably on a weekly-basis during each calendar year.  Executive shall also be entitled to all paid holidays given by the Company to its senior executives.

 

  

  

  

 

5.5           Other Benefits.  During Executive’s term of employment hereunder, Executive and, to the extent applicable, Executive’s spouse, dependents and beneficiaries, shall be allowed to enjoy and participate in all benefit plans and programs, including improvements or modifications of the same, which are now, or may hereafter be, available to other executive employees of the Company and its subsidiaries.  Such benefit plans and programs shall include, without limitation, medical insurance, D&O insurance, and such similar benefits, plans and programs as may be maintained by the Company.  The Company shall not, however, be obligated to institute, maintain, or refrain from changing, amending, or discontinuing, any such benefit plan or program, so long as such changes are similarly applicable to executive employees generally.

 

6.           Business Expenses.  During Executive’s term of employment hereunder, Executive shall be entitled to incur and be reimbursed by the Company for all reasonable business expenses.  The Company agrees that it will reimburse Executive for all such expenses upon the presentation by Executive, on a monthly basis, of an itemized account of such expenditures setting forth the date, the purposes for which incurred, and the amounts thereof, together with such receipts showing payments in conformity with the Company’s established policies.  Reimbursement for approved expenses shall be made within a reasonable period not to exceed thirty (30) days after the approval of Executive’s itemized account.

7.           Indemnity.  The Company shall to the extent permitted and required by law, indemnify and hold Executive harmless from costs, expense or liability arising out of or relating to any acts or decisions made by Executive in the course of his engagement to the same extent the Company indemnifies and holds harmless other officers and directors of the Company in accordance with the Company’s established policies.

8.           Termination.  Executive’s engagement with the Company may be terminated for the reasons set forth below.  To the extent Executive serves as a member of the Company’s Board of Directors, at the request of the Company’s Board of Directors Executive agrees to resign from his position as a director of the Company within twenty-four (24) hours after his engagement is terminated.

8.1           Death.  This Agreement shall terminate upon Executive’s death (“Death”).  The Company shall pay Executive’s estate (i) on the date it would have been payable to Executive any unpaid Base Salary and accrued vacation, if any, earned prior to Executive’s Death, and (ii) any unpaid reimbursements due Executive for expenses incurred by Executive prior to Executive’s Death, upon receipt from Executive’s personal representative of receipts therefor.

8.2           Disability.  If, as a result of Executive’s incapacity due to physical or mental illness, thereby causing Executive to have been absent from the full time performance of substantially all of his material duties with the Company for a continuous period of one hundred eighty (180) days, Executive’s engagement may be terminated by the Company or by Executive for “Disability.”  Termination shall occur thirty (30) days after a notice of a written termination is delivered to Executive by the Company or by Executive to the Company (the “Effective Date of Termination”).  On the Effective Date of Termination, the Company shall pay Executive:

(a)           any unpaid Base Salary and accrued vacation, if any, earned prior to the date of Executive’s Effective Date of Termination, and

(b)           any unpaid reimbursements due Executive for expenses incurred by Executive prior to Executive’s Effective Date of Termination, pursuant to Section 6.

8.3           Cause.  The Company may terminate Executive’s engagement hereunder for Cause.  For purposes of this Agreement, “Cause” means:

 

  

  

  

 

(a)           an act or acts of dishonesty undertaken by Executive and intended to result in material personal gain or enrichment of Executive or others at the expense of the Company;

(b)           gross misconduct that is willful or deliberate on Executive’s part and that, in either event, is materially injurious to the Company, including but not limited to sexual harassment, embezzlement, theft, and disclosure of Company trade secrets;

(c)           the conviction of Executive of a felony or plea of nolo contendere to a felony ; or

(d)           the material breach of any terms and conditions of this Agreement by Executive, which breach has not been cured by Executive within thirty (30) days after written notice thereof to Executive from the Company.

In the event of termination for Cause, Executive will be entitled to such Base Salary, accrued vacation, if any, earned through the date of termination, and unpaid reimbursements due Executive for expenses incurred by Executive prior to the date of termination, pursuant to Section 6, which amounts shall be payable on the date of termination for Cause, but will not be entitled to any other salary, benefits, bonuses or other compensation after such date.

8.4           Without Cause.  This Agreement may also be terminated by the Company at any time by the delivery to Executive of a written notice of termination.  Upon such termination, Executive shall be entitled to receive the following (collectively, the “Severance Benefits”):

(a)           on the Effective Date of Termination, Executive will be paid such Base Salary and accrued vacation, if any, earned by Executive through the date of termination;

(b)           Executive will also be paid a termination fee equal to his then-current Base Salary for one year, payable in six (6) equal bi-monthly installments; and

(c)           Executive’s options shall continue to vest in accordance with their terms, and such options shall expire on the latest termination date set forth in the applicable stock option agreements.

As a condition to receipt of the consideration described in clause (b) above, the Company and Executive shall execute a mutually acceptable general release.

8.5           By Executive.  Executive may terminate this Agreement upon thirty (30) days written notice to the Company.

(a)           In the event Executive terminates this Agreement for “Good Reason,” Executive shall be entitled to receive the Severance Benefits.  As used herein, “Good Reason” shall mean:

(i)           any reduction in Executive’s then-current Base Salary or any material reduction in Executive’s comprehensive compensation package (other than changes, if any, required by group insurance carriers applicable to all persons covered under such plans or changes required under applicable law), unless such reduction is in connection with concurrent and proportional reductions in the salaries of the other members of management of the Company, which reductions have been approved by the Company’s Board of Directors;

 

  

  

  

 

(ii)           a material adverse change in Executive’s responsibilities; except in connection with the termination of Executive’s engagement for Cause, upon the Death of Executive, upon Executive’s Disability or upon voluntary termination by Executive;

(iii)           the assignment to Executive of duties that represent or constitute a material adverse change in Executive’s position, duties, responsibilities and status with the Company; or

(iv)           the material breach of any terms and conditions of this Agreement by the Company, which breach has not been cured by the Company within thirty (30) days after written notice thereof to the Company from Executive.

(b)           In the event Executive terminates this Agreement other than for Disability or Good Reason, the Company shall pay Executive:

(i)           on the date it would have been payable to Executive, any unpaid Base Salary and accrued vacation, if any, earned through the date of Executive’s termination; and

(ii)           any unpaid reimbursements due Executive for expenses incurred by Executive through the date of Executive’s termination, pursuant to Section 6.

9.           Covenants.

9.1           Confidential Information.  During the term of this Agreement and thereafter, Executive shall not, except as may be required to perform his duties hereunder or as required by applicable law or court order, disclose to others for use, whether directly or indirectly, any Confidential Information regarding the Company.  “Confidential Information” shall mean information about the Company, its subsidiaries and affiliates, and their respective clients and customers that is not available to the general public or that does not otherwise become available to the general public, and that was learned by Executive in the course of his engagement by the Company, including, without limitation, any data, formulae, methods, information, proprietary knowledge, trade secrets and client and customer lists and all papers, resumes, records and other documents containing such Confidential Information.  Executive acknowledges that such Confidential Information is specialized, unique in nature and of great value to the Company, and that such information gives the Company a competitive advantage.  Upon the termination of his engagement, Executive will promptly deliver to the Company all documents, maintained in any format, including electronic or print, (and all copies thereof) in his possession containing any Confidential Information.

9.2           Right to Company Materials.   Executive agrees that all patents, copyrights, designs, lists, materials, books, files, reports, correspondence, records, and other documents (“Company Material”) used, prepared, or made available to Executive, shall be and shall remain the property of the Company.  Upon the termination of his engagement and/or the expiration of this Agreement, all Company Materials shall be returned immediately to the Company, and Executive shall not make or retain any copies thereof.

9.3           Non-solicitation.  Executive understands and agrees that in the course of engagement with the Company, Executive will obtain access to and/or acquire Company trade secrets, including Confidential Information, which are solely the property of the Company.  Therefore, to protect such trade secrets, Executive promises and agrees that during the term of this Agreement, and for a period of two years thereafter, he will not solicit or assist or instruct others in soliciting any employees of the Company or any of its present or future subsidiaries or affiliates.  Executive further promises and agrees that during the term of this Agreement, and for a period of two years thereafter, he will not use Confidential Information to solicit or assist or instruct others in soliciting any customers or suppliers of the Company or any of its present or future subsidiaries or affiliates, to divert their engagement or business to or with any individual, partnership, firm, corporation or other entity then in competition with the business of the Company or any of its subsidiaries or affiliates.

 

  

  

  

 

9.4           Non-disparagement.  Except for statements of fact, internal Company communications relating to the performance of the Company, disclosures required under applicable law or in connection with any legal proceedings with respect to which Executive is a party or witness, Executive will not make any disparaging remarks regarding the Company at any time during or after the termination of his engagement with the Company.  Except for statements of fact, internal communications relating to the performance of Executive, and disclosures required under applicable law or in connection with any legal proceedings with respect to which the Company is a party or witness, the Company will not make any disparaging remarks regarding Executive at any time during or after the termination of his engagement with the Company.

10.           Notice.  For the purpose of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered or when mailed by United States certified or registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth below, or to such other addresses as either party may have furnished to the other in writing in accordance herewith, exception that notice of a change of address shall be effective only upon actual receipt:

 

	Company:	 	Phototron Holdings, Inc.
	 	 	20259 Ventura Boulevard
	 	 	Woodland Hills, California 91364
	 	 	Attention:  Board of Directors
	 	 	 
	Executive:	 	Douglas Braun

 

11.           Amendments or Additions.  No amendment or additions to this Agreement shall be binding unless in writing and signed by all parties hereto.

12.           Section Headings.  The section headings used in this Agreement are included solely for convenience and shall not affect, or be used in connection with, the interpretation of this Agreement.

13.           Severability.  The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.

14.           Counterparts.  This Agreement may be executed in counterparts (including via facsimile or in PDF format), each of which shall be deemed to be an original, but both of which together will constitute one and the same instrument.

 

  

  

  

 

15.           Arbitration.  Except as provided herein, any controversy or claim arising out of or relating in any way to this Agreement or the breach thereof, or Executive’s engagement and any statutory claims including all claims of discrimination shall be subject to private and confidential arbitration in Los Angeles County, California in accordance with the laws of the State of California.  The arbitration shall be conducted before a sole arbitrator (the “Arbitrator”) selected from Judicial Arbitration & Mediation Services, Inc. or its successor (“JAMS”) and conducted pursuant to JAMS’ Employment Arbitration Rules (the “Rules”), or if JAMS is no longer providing arbitration services, such arbitrator shall be selected by the Company, and shall be conducted in accordance with the provisions of applicable law as the exclusive remedy of such dispute.  The Company and Executive shall each pay one-half of the arbitration fees.  Each party shall have the right to conduct discovery including depositions, requests for production of documents and such other discovery as permitted under the Rules or ordered by the arbitrator.  The statute of limitations or any cause of action shall be that prescribed by law.  The arbitrator shall have the authority to award any damages authorized by law for the claims presented including punitive damages and shall have the authority to award reasonable attorney’s fees to the prevailing party in accordance with applicable law.  The decision of the arbitrator shall be final and binding on all parties and shall be the exclusive remedy of the parties.  The award shall be in writing in accordance with the Rules, and shall be subject to judicial enforcement in accordance with California law.  Notwithstanding anything to the contrary contained in this Section 15, nothing herein shall prevent or restrict the Company or Executive from seeking provisional injunctive relief from any forum having competent jurisdiction over the parties.

16.           Miscellaneous.  No provision of this Agreement may be waived or discharged unless such waiver or discharge is agreed to in writing and signed by Executive and such officer as may be specifically designated by the Company’s Board of Directors.  No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.  No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of California without regard to its conflicts of law principles.

 

[Signature Page Follows]

 

  

  

  

IN WITNESS WHEREOF, each of the parties hereto has executed this Executive Services Agreement on the date first indicated above.

 

	 	PHOTOTRON HOLDINGS, INC.	 
	 	 	 	 
	
 

	
By: 

	/s/ Brian B. Sagheb    	 
	 	 	Brian B. Sagheb	 
	 	 	Chief Financial Officer	 
	 	 	 	 

	 	EXECUTIVE:	 
	 	 	 	 
	
 

	
By: 

	/s/ Douglas Braun	 
	 	 	Douglas Braunx4-2a.htm

  

Exhibit 4.2(a)

ALABAMA POWER COMPANY

TO

THE BANK OF NEW YORK MELLON

TRUSTEE

FORTY-SIXTH SUPPLEMENTAL INDENTURE

DATED AS OF MAY 24, 2011

SERIES 2011B SENIOR NOTES

DUE JUNE 1, 2021

 

 

 

TABLE OF CONTENTS1

PAGE

 

	
 ARTICLE 1  Series 2011B Senior Notes

 

	 2
	 SECTION 101.  Establishment.	 2
	 SECTION 102.  Definitions.	 2
	 SECTION 103.  Payment of Principal and Interest.	 3
	 SECTION 104.  Denominations.	 4
	 SECTION 105.  Global Securities.	 4
	 SECTION 106.  Transfer.	 5
	
 SECTION 107.  Redemption at the Company’s Option.

   

	 5
	
 ARTICLE 2  Miscellaneous Provisions

	 6
	
 

SECTION 201.  Recitals by Company.

	 6
	 SECTION 202.  Ratification and Incorporation of Original Indenturem	 6
	 SECTION 203.  Executed in Counterparts.	 6
	
 

EXHIBIT A  FORM OF SERIES 2011B NOTE

	A-1 
	
 

EXHIBIT B  CERTIFICATE OF AUTHENTICATION

	B-1 

 

 

  

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

 

 

 

  

  

  

 

THIS FORTY-SIXTH SUPPLEMENTAL INDENTURE is made as of the 24th day of May, 2011, by and between ALABAMA POWER COMPANY, an Alabama corporation, 600 North 18th Street, Birmingham, Alabama 35291 (the “Company”), and THE BANK OF NEW YORK MELLON, a New York banking corporation, 101 Barclay Street, New York, New York 10286 (the “Trustee”).

W I T N E S S E T H:

WHEREAS, the Company has heretofore entered into a Senior Note Indenture, dated as of December 1, 1997 (the “Original Indenture”), with The Bank of New York Mellon (as successor to JPMorgan Chase Bank, N.A. (formerly known as The Chase Manhattan Bank)), Trustee, as heretofore supplemented;

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

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

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

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

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

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

 

 

 

  

  

  

 

ARTICLE 1

 

Series 2011B Senior Notes

 

SECTION 101.  Establishment.  There is hereby established a new series of Senior Notes to be issued under the Indenture, to be designated as the Company’s Series 2011B 3.950% Senior Notes due June 1, 2021 (the “Series 2011B Notes”).

There are to be authenticated and delivered $200,000,000 aggregate principal amount of Series 2011B Notes, and such principal amount of the Series 2011B Notes may be increased from time to time pursuant to Section 301 of the Original Indenture.  All Series 2011B Notes need not be issued at the same time and such series may be reopened at any time, without the consent of any Holder, for issuances of additional Series 2011B Notes.  Any such additional Series 2011B Notes will have the same interest rate, maturity and other terms as those initially issued (except for the issue price and Original Issue Date and the initial interest accrual date and initial Interest Payment Date, if applicable).  No Series 2011B Notes shall be authenticated and delivered in excess of the principal amount as so increased except as provided by Sections 203, 303, 304, 907 or 1107 of the Original Indenture.  The Series 2011B Notes shall be issued in definitive fully registered form.

The Series 2011B Notes shall be issued in the form of one or more Global Securities in substantially the form set out in Exhibit A hereto.  The Depositary with respect to the Series 2011B Notes shall be The Depository Trust Company.

The form of the Trustee’s Certificate of Authentication for the Series 2011B Notes shall be in substantially the form set forth in Exhibit B hereto.

Each Series 2011B Note shall be dated the date of authentication thereof and shall bear interest from the date of original issuance thereof or from the most recent Interest Payment Date to which interest has been paid or duly provided for.

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

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Series 2011B Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Series 2011B Notes.

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

 

 

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“Independent Investment Banker” means an independent investment banking institution of national standing appointed by the Company.

“Interest Payment Dates” means June 1 and December 1 of each year, commencing December 1, 2011.

“Original Issue Date” means May 24, 2011.

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

“Reference Treasury Dealer” means a primary U.S. Government securities dealer appointed by the Company.

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

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

“Stated Maturity” means June 1, 2021.

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

SECTION 103.  Payment of Principal and Interest.  The principal of the Series 2011B Notes shall be due at Stated Maturity (unless earlier redeemed).  The unpaid principal amount of the Series 2011B Notes shall bear interest at the rate of 3.950% per annum until paid or duly provided for.  Interest shall be paid semiannually in arrears on each Interest Payment Date to the Person in whose name the Series 2011B Notes are registered on the Regular Record Date for such Interest Payment Date, provided that interest payable at the Stated Maturity of principal or on a Redemption Date as provided herein will be paid to the Person to whom principal is payable.  Any such interest that is not so punctually paid or duly provided for will forthwith cease to be payable to the Holders 

 

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on such Regular Record Date and may either be paid to the Person or Persons in whose name the Series 2011B Notes are registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Holders of the Series 2011B Notes not less than ten (10) days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange, if any, on which the Series 2011B Notes shall be listed, and upon such notice as may be required by any such exchange, all as more fully provided in the Original Indenture.

Payments of interest on the Series 2011B Notes will include interest accrued to but excluding the respective Interest Payment Dates.  Interest payments for the Series 2011B Notes shall be computed and paid on the basis of a 360-day year of twelve 30-day months.  In the event that any date on which interest is payable on the Series 2011B Notes is not a Business Day, then payment of the interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of any such delay), with the same force and effect as if made on the date the payment was originally payable.

Payment of the principal and interest due at the Stated Maturity or earlier redemption of the Series 2011B Notes shall be made upon surrender of the Series 2011B Notes at the Corporate Trust Office of the Trustee.  The principal of and interest on the Series 2011B Notes shall be paid in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.  Payments of interest (including interest on any Interest Payment Date) will be made, subject to such surrender where applicable, at the option of the Company, (i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or (ii) by wire transfer or other electronic transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least sixteen (16) days prior to the date for payment by the Person entitled thereto.

SECTION 104.  Denominations.  The Series 2011B Notes may be issued in denominations of $1,000, or any integral multiple thereof.

SECTION 105.  Global Securities.  The Series 2011B Notes will be issued in the form of one or more Global Securities registered in the name of the Depositary (which shall be The Depository Trust Company) or its nominee.  Except under the limited circumstances described below, Series 2011B Notes represented by one or more Global Securities will not be exchangeable for, and will not otherwise be issuable as, Series 2011B Notes in definitive form.  The Global Securities described above may not be transferred except by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or to a successor Depositary or its nominee.

Owners of beneficial interests in such a Global Security will not be considered the Holders thereof for any purpose under the Indenture, and no Global Security representing a Series 2011B Note shall be exchangeable, except for another Global Security of like denomination and tenor to be registered in the name of the Depositary or its nominee or a 

 

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successor Depositary or its nominee.  The rights of Holders of such Global Security shall be exercised only through the Depositary.

Neither the Company, the Trustee nor any agent of the Company or the Trustee shall have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests in a Global Security or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.

Subject to the procedures of the Depositary, a Global Security shall be exchangeable for Series 2011B Notes registered in the names of persons other than the Depositary or its nominee only if (i) the Depositary notifies the Company that it is unwilling or unable to continue as a Depositary for such Global Security and no successor Depositary shall have been appointed by the Company, or if at any time the Depositary ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, at a time when the Depositary is required to be so registered to act as such Depositary and no successor Depositary shall have been appointed by the Company, in each case within 90 days after the Company receives such notice or becomes aware of such cessation, (ii) the Company in its sole discretion determines that such Global Security shall be so exchangeable, or (iii) there shall have occurred an Event of Default with respect to the Series 2011B Notes.  Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Series 2011B Notes registered in such names as the Depositary shall direct.

SECTION 106.  Transfer.  No service charge will be made for any transfer or exchange of Series 2011B Notes, but payment will be required of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith.

The Company shall not be required (a) to issue, register the transfer of or exchange any Series 2011B Notes during a period beginning at the opening of business fifteen (15) days before the date of the mailing of a notice pursuant to Section 1104 of the Original Indenture identifying the serial numbers of the Series 2011B Notes to be called for redemption, and ending at the close of business on the day of the mailing, or (b) to register the transfer of or exchange any Series 2011B Notes theretofore selected for redemption in whole or in part, except the unredeemed portion of any Series 2011B Notes redeemed in part.

SECTION 107.  Redemption at the Company’s Option.  The Series 2011B Notes will be subject to redemption at the option of the Company in whole or in part, at any time and from time to time upon not less than 30 nor more than 60 days’ notice.  The Company shall have the right to redeem the Series 2011B Notes in whole or in part at a redemption price (the “Redemption Price”) equal to the greater of (i) 100% of the principal amount of the Series 2011B Notes to be redeemed, and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Series 2011B Notes being redeemed (not including any portion of such payments of interest accrued to the Redemption Date), discounted (for purposes of determining present value) to the Redemption Date on a semiannual basis (assuming a 360-

 

 

5

  

  

  

 

day year consisting of twelve 30-day months) at a discount rate equal to the Treasury Yield plus 12.5 basis points, plus, in each case, accrued interest thereon to the Redemption Date.

In the event of redemption of the Series 2011B Notes in part only, a new Series 2011B Note or Notes for the unredeemed portion will be issued in the name or names of the Holders thereof upon the surrender thereof.

The Series 2011B Notes will not have a sinking fund.

Notice of redemption shall be given as provided in Section 1104 of the Original Indenture except that any notice of redemption shall not specify the Redemption Price but only the manner of calculation thereof.  The Trustee shall not be responsible for the calculation of the Redemption Price.  The Company shall calculate the Redemption Price and promptly notify the Trustee thereof.

Any redemption of less than all of the Series 2011B Notes shall, with respect to the principal thereof, be divisible by $1,000.

ARTICLE 2

 

Miscellaneous Provisions

 

SECTION 201.  Recitals by Company.  The recitals in this Forty-Sixth Supplemental Indenture are made by the Company only and not by the Trustee, and all of the provisions contained in the Original Indenture in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect of Series 2011B Notes and of this Forty-Sixth Supplemental Indenture as fully and with like effect as if set forth herein in full.

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

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

 

 

6

  

  

  

 

 

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

 

 

	
ATTEST:

	
ALABAMA POWER COMPANY

 

	
  By:  /s/ William E. Zales, Jr.

	 	 	
By:

	 	
/s/ Philip C. Raymond

	 

	
         William E. Zales, Jr.

	
Philip C. Raymond

	 	 Secretary	Executive Vice President,

	
 

	
Chief Financial Officer and

	
 

	
Treasurer

	
ATTEST:

	
THE BANK OF NEW YORK MELLON,

	
 

	 	 as Trustee

	 By:  /s/Sherma Thomas	 By:  /s/Laurence J. O'Brien
	
        Sherma Thomas

        Senior Associate

	
         Laurence J. O'Brien

         Vice President

 

                                    

7

  

  

  

 

EXHIBIT A

 

FORM OF SERIES 2011B NOTE

 

 

	

NO. __

	 	 	 	
CUSIP NO. 010392 FE3

 

ALABAMA POWER COMPANY

 

SERIES 2011B 3.950% SENIOR NOTE

 

DUE JUNE 1, 2021

 

	
Principal Amount:

 

	
$__________________

	
Regular Record Date:

 

	
15th calendar day prior to Interest Payment Date (whether or not a Business Day)

	
Original Issue Date:

 

	
May 24, 2011

	
Stated Maturity:

 

	
June 1, 2021

	
Interest Payment Dates:

 

	
June 1 and December 1

	
Interest Rate:

 

	
3.950%

	
Authorized Denomination:

 

	
$1,000 or any integral multiple thereof

 

 

    Alabama Power Company, an Alabama corporation (the “Company”, which term includes any successor corporation under the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to ___________________________________________, or registered assigns, the principal sum of ____________________________________________ DOLLARS ($______________) on the Stated Maturity shown above (or upon earlier redemption), and to pay interest thereon from the Original Issue Date shown above, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semiannually in arrears on each Interest Payment Date as specified above, commencing on December 1, 2011, and on the Stated Maturity (or upon earlier redemption) at the rate per annum shown above until the principal hereof is paid or made available for payment and at such rate on any overdue principal and on any overdue installment of interest.  The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date (other than an Interest Payment Date that is the Stated Maturity or on a Redemption Date) will, as provided in such Indenture, be paid to the Person in whose name this Note (the “Note”) is registered at the close of business on the Regular Record Date as specified above next preceding such Interest Payment Date, provided that any interest payable at the Stated Maturity or on any Redemption Date will be paid to the Person to whom principal is payable.  Except as otherwise provided in the Indenture, any such interest not so punctually paid or duly provided for will forthwith cease to be 

 

 

  

  

  

 

payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Note is registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Holders of Notes of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange, if any, on which the Notes of this series shall be listed, and upon such notice as may be required by any such exchange, all as more fully provided in the Indenture.

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

Payment of the principal of and interest due at the Stated Maturity or earlier redemption of the Series 2011B Notes shall be made upon surrender of the Series 2011B Notes at the Corporate Trust Office of the Trustee.  The principal of and interest on the Series 2011B Notes shall be paid in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.  Payment of interest (including interest on an Interest Payment Date) will be made, subject to such surrender where applicable, at the option of the Company, (i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or (ii) by wire transfer or other electronic transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least 16 days prior to the date for payment by the Person entitled thereto.

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

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

 

 

  

  

  

 

 

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

Dated:

ALABAMA POWER COMPANY

By:                                                      

Vice President

Attest:

                                                                  

Secretary

{Seal of ALABAMA POWER COMPANY appears here}

  

  

  

CERTIFICATE OF AUTHENTICATION

 

 

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

 

 

THE BANK OF NEW YORK MELLON

 

as Trustee

 

 

 

By:                                                              

                                                                                                                  Authorized Signatory

 

  

  

  

(Reverse Side of Note)

 

This Note is one of a duly authorized issue of Senior Notes of the Company (the “Notes”), issued and issuable in one or more series under a Senior Note Indenture, dated as of December 1, 1997, as supplemented (the “Indenture”), between the Company and The Bank of New York Mellon (as successor to JPMorgan Chase Bank, N.A. (formerly known as The Chase Manhattan Bank)), Trustee (the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures incidental thereto reference is hereby made for a statement of the respective rights, limitation of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Notes issued thereunder and of the terms upon which said Notes are, and are to be, authenticated and delivered.  This Note is one of the series designated on the face hereof as Series 2011B 3.950% Senior Notes due June 1, 2021 (the “Series 2011B Notes”) which is unlimited in aggregate principal amount.  Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Indenture.

 

 

The Series 2011B Notes will be subject to redemption at the option of the Company in whole or in part at any time and from time to time upon not less than 30 nor more than 60 days’ notice.  The Company shall have the right to redeem the Series 2011B Notes in whole or in part at a redemption price (the “Redemption Price”) equal to the greater of (i) 100% of the principal amount of the Series 2011B Notes to be redeemed, and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Series 2011B Notes being redeemed (not including any portion of such payments of interest accrued to the Redemption Date), discounted (for purposes of determining present value) to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at a discount rate equal to the Treasury Yield (as defined below) plus 12.5 basis points, plus, in each case, accrued interest thereon to the Redemption Date.

 

 

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

 

 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Series 2011B Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Series 2011B Notes.

 

  

  

  

 

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

 

 

“Independent Investment Banker” means an independent investment banking institution of national standing appointed by the Company.

 

 

“Reference Treasury Dealer” means a primary U.S. Government securities dealer appointed by the Company.

 

 

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

 

 

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

 

 

In the event of redemption of this Note in part only, a new Note or Notes of this series for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the surrender hereof.  The Series 2011B Notes will not have a sinking fund.

 

 

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

 

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Notes of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of not less than a majority in principal amount of the Notes at the time Outstanding of each series to be affected.  The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Notes of each series at the time Outstanding, on behalf of the Holders of all Notes of such series, 

 

 

 

  

  

  

 

 

to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

 

 

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed.

 

 

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

 

 

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

 

 

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

 

 

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

 

  

  

  

ABBREVIATIONS

 

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

 

	
TEN COM-

	
as tenants in

common

	
UNIF GIFT MIN ACT-

	
______ Custodian_____

(Cust)                 (Minor)

	
TEN ENT-

	
as tenants by the

entireties

	  	
 

under Uniform Gifts to

	
JT TEN-

	
as joint tenants

with right of

survivorship and

not as tenants

in common

	  	
Minors Act

 

____________________

            (State)

Additional abbreviations may also be used

 

though not on the above list.

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

___________________________________________________________________________________________________________________________________

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

 

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

___________________________________________________________________________________________________________________________________

 

___________________________________________________________________________________________________________________________________

 

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

___________________________________________________________________________________________________________________________________

 

___________________________________________________________________________________________________________________________________

 

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

 

Dated:                                                                                                                                                                                                                                                              

 

                                                                                                                                                                                                                                                                           

 

 

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

 

 

 

  

  

  

 

 

EXHIBIT B

 

 

CERTIFICATE OF AUTHENTICATION

 

 

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

 

 

THE BANK OF NEW YORK MELLON

as Trustee

 

 

 

By:                                                                

Authorized Signatory

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