Document:

Exhibit 4.2

 

 

 

 

GEORGIA POWER COMPANY

 

TO

 

THE BANK OF NEW YORK MELLON,

TRUSTEE

 

 

 

THIRTY-EIGHTH SUPPLEMENTAL INDENTURE

 

DATED AS OF FEBRUARY 10, 2009

 

 

 

 

 

SERIES 2009A 5.95% SENIOR NOTES

 

DUE FEBRUARY 1, 2039

 

 

 

 

 

TABLE OF CONTENTS1

 

	
            
 
 	
             
 	
            
    PAGE
 

 

	
            
ARTICLE 1
 	
             
 	
            
    2
 

	
             
 	
            Series 2009A 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
 	
             
 	
            
    5
 

	
             
 	
            
Miscellaneous Provisions
 	
            
5
 

	
             
 	
            SECTION 201.  Recitals by Company
 	
            5
 

	
             
 	
            SECTION 202.  Ratification and Incorporation of Original Indenture
 	
            6
 

	
             
 	
            SECTION 203.  Executed in Counterparts
 	
            6
 

	
            
EXHIBIT A   Form of Series 2009A Note
 	
            

 

	
            
EXHIBIT B   Certificate of Authentication
 	
            

 

_________________________

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

 

i

 

 

THIS THIRTY-EIGHTH SUPPLEMENTAL INDENTURE is made as of the 10th day of February, 2009, by and between GEORGIA POWER COMPANY, a Georgia corporation, 241 Ralph McGill Boulevard, N.E., Atlanta, Georgia 30308-3374 (the “Company”), and THE BANK OF NEW YORK MELLON, a New York banking corporation, 101 Barclay Street, Floor 8W, 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 January 1, 1998 (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)), 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 Thirty-Eighth Supplemental Indenture, is herein called the “Indenture”;

 

WHEREAS, under the Original Indenture, a new series of Senior Notes may at any time be established by the Board of Directors of the Company in accordance with the provisions of the Original Indenture and the terms of such series may be described by 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 Thirty-Eighth 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 2009A 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 2009A 5.95% Senior Notes due February 1, 2039 (the “Series 2009A Notes”).

 

There are to be authenticated and delivered $500,000,000 principal amount of Series 2009A Notes, and such principal amount of the Series 2009A Notes may be increased from time to time pursuant to Section 301 of the Original Indenture.  All Series 2009A 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 2009A Notes.  Any such additional Series 2009A Notes will have the same interest rate, maturity and other terms as those initially issued.  No Series 2009A 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 2009A Notes shall be issued in definitive fully registered form.

 

The Series 2009A 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 2009A Notes shall be The Depository Trust Company.

 

The form of the Trustee’s Certificate of Authentication for the Series 2009A Notes shall be in substantially the form set forth in Exhibit B hereto.

 

Each Series 2009A 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.

 

	
             
 	
            The Series 2009A Notes will not have a sinking fund.
 

 

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 2009A 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 2009A 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 

 

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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.

 

 “Interest Payment Dates” means February 1 and August 1 of each year, commencing August 1, 2009.

 

	
             
	
            “Original Issue Date” means February 10, 2009.

 

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

 

 “Reference Treasury Dealer Quotation” means, with respect to a 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 February 1, 2039.

 

 “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.

 

SECTION 103.  Payment of Principal and Interest.  The principal of the Series 2009A Notes shall be due at Stated Maturity (unless earlier redeemed).  The unpaid principal amount of the Series 2009A Notes shall bear interest at the rate of 5.95% 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 2009A 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 on such Regular Record Date
and may either be paid to the Person or Persons in whose name the Series 2009A 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 2009A 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 2009A 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.

 

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Payments of interest on the Series 2009A Notes will include interest accrued to but excluding the respective Interest Payment Dates.  Interest payments for the Series 2009A 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 2009A 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 2009A Notes shall be made upon surrender of the Series 2009A Notes at the Corporate Trust Office of the Trustee.  The principal of and interest on the Series 2009A 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 2009A Notes may be issued in denominations of $1,000, or any integral multiple thereof.

 

SECTION 105.  Global Securities.  The Series 2009A 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 2009A Notes represented by one or more Global Securities will not be exchangeable for, and will not otherwise be issuable as, Series 2009A 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 2009A Note shall be exchangeable, except for another Global Security of like denomination and tenor to be registered in the name of the Depositary or its nominee or to a successor Depositary or its nominee.  The rights of Holders of such Global Security shall be exercised only through the Depositary.

 

Subject to the procedures of the Depositary, a Global Security shall be exchangeable for Series 2009A 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 

 

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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 2009A Notes.  Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Series 2009A 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 2009A Notes, but payment will be required of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith.

 

The Company shall not be required (a) to issue, transfer or exchange any Series 2009A 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 2009A Notes to be called for redemption, and ending at the close of business on the day of the mailing, or (b) to issue, transfer or exchange any Series 2009A Notes theretofore selected for redemption in whole or in part, except the unredeemed portion of any Series 2009A Notes redeemed in part.

 

SECTION 107.  Redemption at the Company’s Option.  The Series 2009A 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, at a redemption price (the “Redemption Price”) equal to the greater of (1) 100% of the principal amount of the Series 2009A Notes to be redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Series 2009A Notes being redeemed 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 plus 40 basis points, plus, in each case, accrued interest thereon to the
date of redemption.

 

In the event of redemption of the Series 2009A Notes in part only, a new Series 2009A Note or Notes for the unredeemed portion will be issued in the name or names of the Holders thereof upon the surrender thereof.

 

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 2009A 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 Thirty-Eighth Supplemental Indenture are made by the Company only and not by the Trustee, and all of the provisions contained 

 

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in the Original Indenture in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect of Series 2009A Notes and of this Thirty-Eighth 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 Thirty-Eighth Supplemental Indenture shall be read, taken and construed as one and the same instrument.

 

SECTION 203.  Executed in Counterparts.  This Thirty-Eighth 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.

 

 

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                        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:

 

 

By:   /s/Daniel Lowery                                                                             

Daniel Lowery

Corporate Secretary

 

 

 

 

 
 	
            GEORGIA POWER COMPANY

 

 

By:   /s/Cliff S. Thrasher                                                                             

Cliff S. Thrasher

Executive Vice President,

Chief Financial Officer and Treasurer

 

 

 

 
 
	
            ATTEST:

 

 

By:   /s/Francine Kincaid                                                                             

Francine Kincaid

Vice President
 	
            THE BANK OF NEW YORK MELLON, as Trustee

 

 

By:   /s/L. O’Brien                                                                             

L. O’Brien

Vice President

 
 

 

 

EXHIBIT A

 

FORM OF SERIES 2009A NOTE

 

 

8

 

 

 

	
            NO. ___
 	
            CUSIP NO. 373334 JN2
 

 

 

GEORGIA POWER COMPANY

SERIES 2009A 5.95% SENIOR NOTE

DUE FEBRUARY 1, 2039

 

 

	
            Principal Amount:
 	
            $__________________
 
	
            Regular Record Date:
 	
            15th calendar day prior to Interest Payment Date (whether or not a Business Day)
 
	
            Original Issue Date:
 	
            February 10, 2009
 
	
            Stated Maturity:
 	
            February 1, 2039
 
	
            Interest Payment Dates:
 	
            February 1 and August 1
 
	
            Interest Rate:
 	
            5.95% per annum
 
	
            Authorized Denominations:
 	
            $1,000 or any integral multiple thereof
 

 

 

Georgia Power Company, a Georgia 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 August 1, 2009, 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 date on which interest is payable on this Note is not a Business Day, then payment of the interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of any such delay), with the same force and effect as if made on the date the payment was originally payable.  A “Business Day” shall mean any day other than a Saturday or a Sunday or a day on which banking institutions in New York City are authorized or required by law or executive order to remain closed or a day on which the Corporate Trust Office of the Trustee is closed for business.

 

Payment of the principal of and interest due at the Stated Maturity or earlier redemption of the Series 2009A Notes shall be made upon surrender of the Series 2009A Notes at the Corporate Trust Office of the Trustee.  The principal of and interest on the Series 2009A 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.

 

 

 

2

 

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

 

Dated: 

 

 

	
             
 	
            GEORGIA POWER COMPANY

 

 

 

By:                                                                             

Title:                   

 
 

 

 

Attest:

 

 

Title:  

 

{Seal of GEORGIA 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

 
 

 

 

4

 

 

(Reverse Side of Note)

 

This Note is one of a duly authorized issue of Senior Notes of the Company (the “Notes”), issued and issuable in one or more series under a Senior Note Indenture, dated as of January 1, 1998, as supplemented (the “Indenture”), between the Company and The Bank of New York Mellon (as successor to JPMorgan Chase Bank, N.A. (formerly known as The Chase Manhattan Bank)), as Trustee (the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures incidental thereto reference is hereby made for a statement of the respective rights, limitation of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Notes issued thereunder and of the terms upon which said Notes are, and are to be, authenticated and delivered.  This Note is one of the series designated on the face hereof as
Series 2009A 5.95% Senior Notes due February 1, 2039 (the “Series 2009A 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 2009A 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 at a redemption price (the “Redemption Price”) equal to the greater of (i) 100% of the principal amount of the Series 2009A Notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Series 2009A Notes being redeemed 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 plus 40 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 2009A 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 2009A 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 United States Government securities dealer in New York City appointed by the Company.

 

5

 

 

 

 “Reference Treasury Dealer Quotation” means, with respect to a 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 2009A Notes will not have a sinking fund.  
 

 

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

 

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

 

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

 

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

 

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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.

 

 

 

7

 

 

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
 	
             
 
	
            JT TEN-            as joint tenants

with right of

survivorship and

not as tenants

in common

 
 	
            under Uniform Gifts to

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.

 

8

 

 

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 Signatoryexv10w1

Exhibit 10.1

AMENDMENT TO TRANSITION SERVICES AGREEMENT

BETWEEN

HARRIS STRATEX NETWORKS, INC.

AND

HARRIS CORPORATION

This Amendment to Transition Services Agreement (this “Amendment”) is made as of Dec. 12,
2008 (the “Amendment Effective Date”) between Harris Stratex Networks, Inc., a company
incorporated under the laws of the State of Delaware, having a place of business at 637 Davis
Drive, Morrisville, NC 27560 (hereinafter referred to as the “Company”) and Harris
Corporation, a company incorporated under the laws of the State of Delaware, having a place of
business at 1025 W. NASA Blvd., Melbourne, FL 32919 (hereinafter referred to as “Harris”
and collectively with the Company referred to herein as the “Parties”).

RECITALS

	A.	 	The Parties entered into a Transition Services Agreement, dated January 26, 2007, (the
“Transition Services Agreement”), which Transition Services Agreement was amended by
that certain Number 1 Amendment to Transition Services Agreement executed October 29, 2007
(such Number 1 Amendment to Transition Services Agreement is referred to herein as
“Amendment No. 1”). All capitalized terms used herein but not defined herein shall
have the respective meanings specified in the Transition Services Agreement.
	 
	B.	 	In accordance with Section 6.03 of the Transition Services Agreement, the Parties now desire
to further amend the Transition Services Agreement as hereinafter provided. The Parties also
now desire to terminate in all respects Amendment No. 1, such termination to be effective from
and after the Amendment Effective Date.
	 
	C.	 	NOW, THEREFORE, in consideration of the mutual promises and covenants included herein and for
other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Parties agree as follows:

AGREEMENT

	1.	 	Amendment to Section 1.07(b) Section 1.07(b) of the Transition Services Agreement is
hereby replaced and amended to read in its entirety as follows:

“(b) In the event any cost is incurred by Harris or any of its Affiliates in
connection with obtaining or soliciting the consent of any third party in
accordance with Section 1.07(a), such cost shall be paid by the
Company and the Company shall reimburse Harris or any of its Affiliates, as
the case may be, upon receipt of an invoice from Harris or its Affiliates,
as applicable, with respect to such costs. If this Agreement is terminated
solely by reason of Harris ceasing to be the majority owner of the Company’s
voting interest, Harris and the Company agree to engage

1

 

commercially reasonable efforts to transfer the software licenses
exclusively used by the Company, such transfer being wholly dependent on the
software licensor’s consent to such transfer.”

	2.	 	Amendment to Section 2.01. Section 2.01 of the Transition Services Agreement is
hereby replaced and amended to read in its entirety as follows:

“Section 2.01 Cost of the Services. In consideration of the
provision of the Services, the Company shall pay to Harris, without set-off,
a service fee for each such Service in the amount equal to the sum of (a)
all internal costs allocated to the maximum extent reasonably practicable to
the provision of such Service on a fully allocated basis, consistent with
the allocation methodology used to determine charges for internal
allocations to the other operating segments of Harris, as such allocation
methodology or amounts may be changed from time to time at the discretion of
Harris; provided, however, that if a Service is provided on a basis other
than an allocation, the costs to be paid by the Company shall be the costs
to Harris or as set forth on Schedule I (for example, hourly billing rates),
(b) a ten percent (10%) administrative and management fee applied to the
costs outlined in subsection (a) of this Section or any cost or fee as
provided in Schedule I attached hereto, (the “Administrative Service
Cost”), and (c) any additional out-of-pocket costs or expenses incurred
by Harris in connection with the provision of such Service, including
without limitation, payments or costs for an ongoing license, grant or
provision of rights or services (all such fees described in (a), (b) and (c)
with respect to each Service, the “Service
Fee”, and collectively
for all Services, the “Service Fees”, in each case with respect to
the relevant payment period, if any, set forth on Schedule I. The Company
shall not be obligated to pay for any individual Service that was properly
terminated pursuant to Section 4.02 or Section 4.03 unless
the Company knowingly accepts the benefits of such Services following any
such termination. The Company will pay Harris the Service Fee relating to
any terminated Service until the effective date of termination.”

The Parties acknowledge and agree that the cost of Services rendered from and after June 28, 2008
shall be based upon Section 2.01 as amended by this Amendment.

	3.	 	Amendment to Section 2.02 of the Transition Services Agreement, Manner and Timing of
Payment shall be made as follows:

     The first sentence of Section 2.02 shall be deleted in its entirety and replaced with
the following:

All payments shall be made, without set-off, within forty-five (45) days after
receipt of an invoice therefor.

2

 

	4.	 	Amendment to Section 4.01. Section 4.01 of the Transition Services Agreement is
hereby replaced and amended to read in its entirety as follows:

“Section 4.01 Term. The term of this Agreement shall commence on the
Effective Date and shall continue unless otherwise terminated in accordance
with the terms of the Agreement (such period is referred to as the
“Term”). Any termination or expiration of this Agreement with
respect to any particular Service shall not terminate this Agreement with
respect to any other Service provided under this Agreement.”

	5.	 	Amendment to Section 4.03. Section 4.03 of the Transition Services Agreement is
hereby replaced and amended to read in its entirety as follows:

          “Section 4.03 Termination by the Company or Harris.

	 	a.	 	This Agreement may be terminated at any time by either
Party with respect to any particular Service or all Services, without
cause, effective upon ninety (90) days prior written notice to the other
Party. Notwithstanding the foregoing, Harris may not terminate Service
ID Number IT 006, Financial Applications any sooner than October 31,
2009 unless otherwise agreed to in writing by the Parties.
	 
	 	b.	 	In addition to payments of any amounts due upon
termination of a Service or this Agreement as set forth in Articles 2
and 4, upon termination of any Service or this Agreement, the Company
shall also pay to Harris within forty-five (45) calendar days of the
expiration or termination of this Agreement or any Service, as the case
may be, any remaining unamortized portion of any prepaid software
license fees and related assets allocated by Harris to the Company prior
to such termination or expiration.
	 
	 	c.	 	As of the Amendment Effective Date, the Company and Harris
agree and acknowledge that Supply Chain Management and Operations, (“SCOS”),
services are hereby terminated except for those SCOS services expressly
provided in Section I(2) of Schedule I attached hereto. In lieu of any
remaining obligations relating to termination of SCOS services, including
without limitation, payment of the remaining unamortized, allocated portion
of EXPO services and software fees, the Company agrees to pay Harris Five
Hundred and Seventy Two Thousand Dollars ($572,000) for the EXPO
implementation project and Sixty Five Thousand Nine Hundred Dollars
($65,900) for software fees upon receipt of a Harris issued invoice but due
no later than December 30, 2008. The Parties further agree to terminate the
SCOS RTS services effective September 30, 2009.

3

 

	6.	 	Amendment of Schedule I. Schedule I to the Transition Services Agreement is
amended and replaced in its entirety by Schedule I attached to this Amendment.
	 
	7.	 	Termination of Amendment No. 1. The Parties acknowledge and agree that Amendment No.
1 is hereby in all respects terminated and of no further and effect from and after the
Amendment Effective Date.
	 
	8.	 	Effectiveness. This Amendment shall be effective when executed by Harris and the
Company.
	 
	9.	 	Counterparts. This Amendment may be executed in two or more counterparts (including
by means of non-alterable electronic copies of signature pages), all of which shall be
considered one and the same agreement.
	 
	10.	 	No Other Amendments. Except as expressly set forth in this Amendment, no other
amendment or modification is made to any other provisions of the Transition Services
Agreement, and the Transition Services Agreement shall remain in full force and effect, as
amended hereby, and Harris and the Company hereby ratify and reaffirm all of their respective
rights and obligations thereunder.

IN WITNESS WHEREOF, Harris Stratex Networks, Inc. and Harris Corporation have caused this Amendment
to be executed by their duly authorized representatives as of the 12 DEC., 2008.

	 	 	 
	Harris Corporation

	 	Harris Stratex Networks, Inc.
	 
	 	 
	By: /s/ GARY L. McARTHUR
 

	 	By: /s/ SARAH A. DUDASH 

	Name:  GARY
L. McARTHUR

	 	Name:  SARAH A. DUDASH

	Title:    SUP, CFO

	 	Title:    SR. VP, CFO

(Schedule I
is Omitted)

4

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