Document:

Exhibit 4.8

 

IDACORP, INC.

 

TO

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

 

Trustee

 

 

 

            SUPPLEMENTAL INDENTURE

 

Dated as of          

 

TO

 

INDENTURE

 

Dated as of February 1, 2001

 

SENIOR DEBT SECURITIES

 

 

 

           SUPPLEMENTAL INDENTURE dated as of                        made and entered into by and between IDACORP, INC., a corporation of the State of Idaho (hereinafter, subject to Article XI of the Indenture, called the “Issuer” or the “Company”), having its principal office at 1221 West Idaho Street, Boise, Idaho 83702-5627, and DEUTSCHE BANK TRUST COMPANY AMERICAS, formerly known as Bankers Trust Company, a banking corporation organized and existing under the laws of the State of New York, as Trustee (hereinafter, subject to Article VII of the Indenture, called the “Trustee”), having its principal office at 60 Wall Street, New York, New York 10005, as Trustee under the Indenture for Senior Debt Securities dated as of February 1, 2001 executed and delivered by IDACORP, Inc.

 

WHEREAS the Indenture dated as of February 1, 2001 (herein with all indentures supplemental thereto called the “Indenture”) provides for the issuance of notes, debentures or other evidences of its indebtedness in one or more series (hereinafter called the “Securities”), unlimited in aggregate principal amount;

 

WHEREAS the Indenture provides in Article III thereof that, prior to the issuance of Securities of any series, the form of such Securities and the terms applicable to such series shall be established in, or pursuant to, the authority granted in a resolution of the Board of Directors (delivered to the Trustee in the form of a Board Resolution) or established in one or more indentures supplemental thereto;

 

WHEREAS the Issuer desires by this            Supplemental Indenture, among other things, to establish the form of the Securities of a series, to be titled “                     Notes, Series      ” of the Issuer, and to establish the terms applicable to such series, pursuant to Sections 3.1 and 10.1(e) of the Indenture;

 

WHEREAS the execution and delivery of this            Supplemental Indenture by the parties hereto are in all respects authorized by the provisions of the Indenture; and

 

WHEREAS all things necessary have been done to make this            Supplemental Indenture a valid agreement of the Issuer, in accordance with its terms.

 

NOW, THEREFORE, THIS                SUPPLEMENTAL INDENTURE WITNESSETH:

 

For and in consideration of the premises, it is mutually covenanted and agreed, as follows:

 

 

ARTICLE I.

 

                    Notes, Series           

 

SECTION 1.        The title of the series of the Securities established by this            Supplemental Indenture shall be “                 Notes, Series      , due                     ” of the Issuer (hereinafter called the “Series       Notes”).  The Series       Notes shall be substantially in the form set forth in Exhibit A hereto (which is hereby incorporated herein and made a part hereof), subject to changes in the form thereof made by the Issuer and acceptable to the Trustee.

 

SECTION 2.        The Series       Notes shall be issued from time to time in an aggregate principal amount not to exceed $              .

 

SECTION 3.        The Series       Notes may be issued in whole or in part as one or more Global Securities and The Depository Trust Company, or a nominee thereof, shall be the Depository for such Global Security or Global Securities, except in each case as otherwise provided in an Issuer Order with respect to any Series       Notes.  The Depository for such Global Security or Global Securities representing Series       Notes may surrender one or more Global Securities representing Series       Notes in exchange in whole or in part for individual Series       Notes on such terms as are acceptable to the Issuer and such Depository and otherwise subject to the terms of Section 2.4 of the Indenture.

 

SECTION 4.        The Issuer hereby appoints, or confirms the appointment of, Deutsche Bank Trust Company Americas as the initial Trustee, Securities Registrar and Paying Agent, subject to the provisions of the Indenture with respect to resignation, removal and succession, and subject, further, to the right of the Issuer to appoint additional agents (including Paying Agents).  An Authenticating Agent may be appointed for the Series       Notes under the circumstances set forth in, and subject to the provisions of, the Indenture.

 

SECTION 5.        The terms of the Series       Notes shall be as set forth in Exhibit A hereto, and shall include the payment and other terms reflected on the respective Series       Notes as actually executed, authenticated and delivered under the Indenture.  Notwithstanding the foregoing, specific terms of particular Series       Notes (any redemption, sinking fund or other repayment terms that differ from the provisions of Article XIV or XV of the Indenture and any terms for satisfaction and discharge of the Indenture that differ from the provisions of Article XII of the Indenture) may be determined in accordance with or pursuant to the Issuer Order with respect thereto, as referred to in Section 3.3 of the Indenture.

 

2

 

ARTICLE II.

 

Miscellaneous Provisions

 

SECTION 1.        The recitals contained herein shall be taken as the statements of the Issuer, and the Trustee assumes no responsibility for the correctness of the same.  The Trustee shall not be responsible for and makes no representation as to the validity, execution by any party other than the Trustee or sufficiency of this            Supplemental Indenture.  The Indenture, as supplemented by this            Supplemental Indenture, is in all respects hereby adopted, ratified and confirmed.

 

SECTION 2.        The titles of the several Articles of this            Supplemental Indenture shall not be deemed to be any part hereof.

 

SECTION 3.        This              Supplemental Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

 

SECTION 4.         Capitalized terms used and not otherwise defined in this               Supplemental Indenture shall have the meanings ascribed thereto in the Indenture.

 

SECTION 5.         In case any provision in this               Supplemental Indenture shall be invalid, illegal or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

SECTION 6.         This               Supplemental Indenture and any Securities issued hereunder shall be governed by and construed in accordance with the laws of the State of Idaho, except that the obligations, rights and remedies of the Trustee hereunder shall be determined under the laws of the State of New York.

 

SECTION 7.         The Issuer represents and warrants to the Trustee that this               Supplemental Indenture has been duly and validly executed and delivered by the Issuer and constitutes the Issuer’s legal, valid and binding obligation, enforceable against the Issuers in accordance with its terms.

 

SECTION 8.         The Trustee shall be entitled to all of the same rights, protections, immunities and indemnities set forth in the Indenture as if specifically set forth herein.

 

SECTION 9.         This               Supplemental Indenture shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

SECTION 10.         In order to comply with laws, rules, regulations and executive orders in effect from time to time applicable to banking institutions, including those relating to the funding of terrorist activities and money laundering, the Trustee is required to obtain, verify and record certain information relating to individuals and entities which maintain a business relationship with the Trustee.  Accordingly, each of the parties hereto agrees to provide to the Trustee upon its reasonable request from time to time identifying information and documentation as may be reasonably available to it in order to enable the Trustee to comply with such laws, rules, regulations and executive orders.

 

3

 

IN WITNESS WHEREOF, the parties hereto have caused this            Supplemental Indenture to be duly executed.

 

	
 
    	
IDACORP,   INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DEUTSCHE   BANK TRUST COMPANY 
   AMERICAS, not in its individual capacity, 
   but solely as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

4

 

	
STATE   OF IDAHO
    	
)
    
	
 
    	
)   ss.:
    
	
COUNTY   OF ADA
    	
)
    

 

At Boise, ID, on this         day of                   20     , before me, a Notary Public in and for the County of Ada and State of Idaho, personally appeared                 , the               , of IDACORP, Inc., to me personally known, who executed the foregoing instrument on behalf of said corporation, and acknowledged the same to be his free act and deed in his said capacity and the free act and deed of IDACORP, Inc.

 

 

	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Notary   Public
    
	
 
    	
 
    	
 
    	
 
    
	
My   Commission Expires:
    	
 
    	
 
    	
 
    

 

5

EXHIBIT A

 

FORM OF NOTE

 

Registered
 No.
 CUSIP

 

[LEGENDS, IF ANY]

 

IDACORP, Inc.

 

                     Note, Series    

 

[            % Fixed Rate Note]

 

	
Original   Issue Date:
    	
 
    	
Principal   Amount:
    
	
Interest   Accrual Date:
    	
 
    	
Issue   Price:
    
	
Interest   Payment Dates:
    	
 
    	
 
    
	
Maturity   Date:
    	
 
    	
 
    
	
Redemption   Date(s):
    	
 
    	
Redemption   Price(s):
    
	
Repayment   Date(s):
    	
 
    	
Repayment   Price(s):
    

 

IDACORP, Inc., an Idaho corporation (the “Company”, which term includes any successor issuer under the Indenture hereinafter referred to), for value received hereby promises to pay to                                  or registered assigns, the principal sum of                        Dollars ($                  ) on the “Maturity Date”, as set forth above, and to pay interest hereon as described herein.

 

The principal of (and premium, if any) and interest on this Note are payable by the Company in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts.

 

REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH BELOW, 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 manually executed by or on behalf of the Trustee under the Indenture, this Note shall not be entitled to any benefit under the Indenture, or be valid or obligatory for any purpose.

 

IN WITNESS WHEREOF, IDACORP, Inc. has caused this instrument to be signed in its corporate name by the signatures or facsimile signatures of its President or a Vice President, and its Treasurer or an Assistant Treasurer, and its corporate seal or a facsimile hereof to be hereon impressed, engraved or imprinted and attested by such signature or facsimile signature of its Secretary or an Assistant Secretary.

 

 

IDACORP, Inc.

 

                      Note, Series    

 

1.             This Note is one of a duly authorized issue of debt securities (hereinafter called the “Securities”) of the Company of the series hereinafter specified, all such Securities issued and to be issued under an Indenture dated as of February 1, 2001 between the Company and Deutsche Bank Trust Company Americas, formerly known as Bankers Trust Company, as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), as amended and supplemented by the First Supplemental Indenture dated as of February 1, 2001 and the              Supplemental Indenture dated as of                      (herein called, the “Indenture”), to which Indenture reference is hereby made for a statement of rights and limitations of rights thereunder of the Holders of the Securities and of the rights, obligations, duties and immunities of the Trustee and of the Company, and the terms upon which the Securities are and are to be authenticated and delivered.  As provided in the Indenture, the Securities may be issued in one or more series which different series may be issued in various aggregate principal amounts, may mature at different times, may bear interest, if any, at different rates, may be subject to different redemption provisions, if any, may be subject to different sinking, purchase or analogous funds, if any, may be subject to different covenants and Events of Default and may otherwise vary as in the Indenture provided or permitted.  This Note is one of a series designated as                  Note, Series      , [due                         ] (the “Series                 Notes”) limited to $                     in aggregate principal amount.  The Series        Notes may be issued at various times with different maturity dates and different principal repayment provisions, may bear interest at different rates, and may otherwise vary, all as provided in the Indenture.

 

2.             A.  The record date (the “Regular Record Date”) with respect to any Interest Payment Date (as defined below) shall be the close of business on [the last day of the calendar month] [the fifteenth day of the calendar month] preceding such Interest Payment Date, whether or not such date shall be a Business Day (unless otherwise set forth herein).  Interest that is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the person in whose name this Note is registered at the close of business on the Regular Record Date immediately preceding such Interest Payment Date; provided, however, that the first payment of interest on any Note with an Original Issue Date between a Regular Record Date and the succeeding Interest Payment Date will be made on the Interest Payment Date following the immediately succeeding Regular Record Date to the registered owner on such immediately succeeding Regular Record Date; and provided, further, that interest payable at Maturity will be payable to the person to whom principal shall be payable. “Maturity” means the date on which the principal amount hereof becomes due and payable, whether at Stated Maturity or earlier by declaration of acceleration, call for redemption or otherwise.  Notwithstanding the foregoing, any interest that is payable but not punctually paid or duly provided for on any Interest Payment Date shall forthwith cease to be payable to the registered owner hereof on such Regular Record Date, and may be paid to the person in whose name this Note is registered at the close of business on a subsequent record date established by notice given by mail, by or on behalf of the Company to such Holder not less than fifteen days preceding such subsequent record date, such record date to be not less than ten days preceding the date for payment of such defaulted interest, or may be paid as more fully provided in the Indenture.  “Business Day” means any day, other than a

 

A-2

 

Saturday or Sunday, that is not a day on which banking institutions are authorized or required by law or regulation to be closed in The City of New York.

 

B.            The Company promises to pay interest on the principal amount from its Original Issue Date at the rate per annum stated on the face hereof until the principal amount hereof is paid or made available for payment.  Unless otherwise provided herein, the Company will pay interest semi-annually each                    and                    (each an “Interest Payment Date”), commencing (except as set forth above in the case of a Note with an Original Issue Date between a Regular Record Date and an Interest Payment Date) with the Interest Payment Date immediately following the Original Issue Date and at Maturity.  If any Interest Payment Date would otherwise be a day that is not a Business Day, such Interest Payment Date shall be postponed to the next day that is a Business Day, and no interest shall accrue by reason of such delayed payment.  Each payment of interest in respect of an Interest Payment Date shall include interest accrued to but excluding such Interest Payment Date.  Interest on Fixed Rate Series       Notes shall be computed on the basis of a 360-day year of twelve 30-day months (unless otherwise specified herein).

 

3.             Payments of interest (other than interest payable at Maturity) will be made by mailing a check to the Holder at the address of the Holder appearing on the Securities Register of the Company on the applicable Regular Record Date, unless otherwise determined by the Company.  The principal amount hereof and any premium and the interest payable at Maturity will be paid at Maturity against presentation of this Note at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, The City of New York, or as otherwise provided in the Indenture.

 

4.             If specified above, this Note may be redeemed, as a whole or from time to time in part, at the option of the Company, on not less than 30 days’ prior notice given as provided in the Indenture, on any Redemption Date(s) and at the related Redemption Price(s) (expressed as a percentage of the principal amount hereof) set forth on the face hereof, together with interest accrued and unpaid hereon to such Redemption Date.  If no such Redemption Date is set forth on the face hereof, this Note may not be so redeemed prior to the Maturity Date specified on the face hereof.  If fewer than all the Outstanding Series       Notes of like tenor and terms are to be redeemed, the particular Series       Notes to be redeemed shall be selected by the Trustee not more than 60 days prior to the Redemption Date from the Outstanding Series       Notes of like tenor or terms not previously called for redemption.  Such selection shall be of principal amounts in increments of $1,000.  Subject to the immediately preceding sentence, such selection shall be made by lot.  The notice of such redemption shall specify which Series       Notes are to be redeemed.  In the event of redemption of this Note in part only, a new Note or Notes of this series of like tenor or terms for the unredeemed portion hereof will be issued to the Holder hereof upon the cancellation hereof.

 

5.             If specified above, this Note will be subject to repayment at the option of the Holder hereof on the Repayment Date(s) and at the related Repayment Price(s) (expressed as a percentage of the principal amount hereof) indicated on the face hereof.  If no such Repayment Date is set forth on the face hereof, this Note may not be so repaid prior to the Maturity Date specified on the face hereof.  On each Repayment Date, if any, this Note shall be repayable in whole or in part at the option of the Holder hereof at the applicable Repayment Price set forth on

 

A-3

 

the face hereof, together with interest accrued and unpaid hereon to such Repayment Date. In order for this Note to be repaid in whole or in part at the option of the Holder hereof, the Paying Agent must receive not less than 30 but not more than 45 days prior to the Repayment Date (i) the Note with the form entitled “Option to Elect Repayment” below duly completed or (ii) a facsimile transmission or a letter from a member of a national securities exchange or the National Association of Securities Dealers, Inc. or a commercial bank or a trust company in the United States of America setting forth the name of the Holder of the Note, the principal amount of the Note, the certificate number of the Note or a description of the Note’s tenor or terms, the principal amount of the Note to be repaid, a statement that the option to elect repayment is being exercised thereby and a guarantee that the Note to be repaid with the form entitled “Option to Elect Repayment” on the reverse of the Note duly completed will be received by such Paying Agent no later than five Business Days after the date of such facsimile transmission or letter and such Note and form duly completed are received by such Paying Agent by such fifth Business Day.  Exercise of such repayment option shall be irrevocable.  Such option may be exercised by the Holder for less than the entire principal amount provided that the principal amount remaining outstanding after repayment is an authorized denomination.

 

6.             If an Event of Default with respect to the Series       Notes shall occur and be continuing, the principal of all of the Series       Notes may be declared due and payable in the manner and with the effect provided in the Indenture.

 

7.             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 Securities under the Indenture at any time by the Company with the consent of the Holders of not less than a majority in principal amount of the Securities at the time Outstanding of all series to be affected thereby (voting as one class).  The Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive past defaults or certain Events of Default under the Indenture, with certain exceptions as therein provided, and their consequences with respect to such series, prior to the acceleration with respect to the Securities of such series.  In the case of any such waiver, the Holder of this Note shall be restored to his former position and rights hereunder, such default shall cease to exist and be deemed to have been cured and not to have occurred, and any related Event of Default shall be deemed to have been cured, and not to have occurred for every purpose of the Indenture; but no such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon.

 

8.             No reference herein to the Indenture and no provision of this Note or of the Indenture shall affect or impair the obligation of the Company, which is unconditional and absolute, to pay the principal of and premium, if any, and interest on this Note at the places, at the times, at the rates, in the amounts and in the coin or currency as prescribed herein and in the Indenture.

 

9.             Series       Notes will be issued in denominations of $1,000 and integral multiples of $1,000 in excess thereof.

 

A-4

 

10.           As provided in the Indenture and subject to certain limitations therein set forth, this Note is transferable on the Securities Register of the Company, upon surrender of this Note for registration of transfer at the office or agency of the Company to be maintained for that purpose in The City of New York.  Every Note presented for registration of transfer shall (if so required by the Company or the Securities Registrar) be duly endorsed, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Securities Registrar duly executed, by the Holder hereof or its attorney duly authorized in writing, and thereupon one or more new Series       Notes of like tenor and terms of authorized denominations and for the same aggregate principal amount will be issued to the designated transferee or transferees.

 

The Company shall not be required (i) to issue, register the transfer of or exchange Series       Notes to be redeemed for a period of fifteen days preceding the date of the mailing of the notice of redemption or (ii) to register the transfer of or to exchange any such Note or portion thereof selected for redemption, except the unredeemed portion of any such Note being redeemed in part.

 

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 a 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 a Note is registered as the owner hereof for all purposes whether or not such Note be overdue and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

11.           Unless otherwise defined herein, all terms used in this Note which are defined in the Indenture shall have the meaning assigned to them in the Indenture.

 

12.           This Note shall for all purposes be governed by, and construed in accordance with, the laws of the State of Idaho.

 

	
 
    	
 
    	
IDACORP, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    

 

A-5

 

 

Trustee’s Certificate of Authentication

 

Dated:

 

This is one of the Securities of the series designated herein referred to in the within- mentioned Indenture.

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,
 as Trustee

 

	
By:
    	
 
    	
 
    
	
 
    	
Authorized   Signatory
    

 

A-6

 

ASSIGNMENT

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

 

 

	
Please   insert social security
   or other identifying number

 

Please   print or typewrite
   name and address of assignee
    
	
 
    	
 
    	
 
    
	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
the   within Note, of IDACORP, Inc. and does hereby irrevocably constitute and   appoint                                            attorney to transfer the said Note on the books of the within-mentioned   Company, with full power of substitution in the premises.
    
	
 
    	
 
    	
 
    
				

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notice:   The signature on this
   assignment must correspond with the
   name as written upon the face of the
   Note in every particular without
   alteration or enlargement or any change
   whatsoever.
    

 

A-7

 

OPTION TO ELECT REPAYMENT*

 

	
The   undersigned hereby irrevocably requests and instructs the Company to repay   the within Note (or portion hereof specified below) pursuant to its terms at   a price equal to the applicable Repayment Price thereof together with   interest to the Repayment Date, to the undersigned at                                                                                                                                                         
    
	
 
    

 

 

Please print or typewrite name and address of the undersigned

 

If less than the entire principal amount of the within Note is to be repaid, specify the portion thereof that the Holder elects to have repaid                                                            and specify the denomination or denominations (which shall be in authorized denominations) of the Series        Notes to be issued to the Holder for the portion of the within Note not being repaid (in the absence of any such specification, one such Note will be issued for the portion not being repaid):                                                     .

 

 

	
Date:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Signature
    

 

	
* Note:
    	
This option is not available to a holder unless this Note   contains an express provision granting to the holder hereof an option to   elect repayment.
    

 

A-8ex41.htm

Exhibit 4.1 Certificate of Designation of Series D Convertible Preferred Stock filed with the Delaware Secretary of State on November 10, 2011

 

 

CERTIFICATE OF DESIGNATIONS,

PREFERENCES AND 
 

RIGHTS OF SERIES D CONVERTIBLE

PREFERRED STOCK, $0.001 PAR VALUE PER SHARE

 

CoroWare, Inc., a corporation organized and existing under the laws of the State of Delaware (the “Corporation”), hereby certifies that the following resolution was adopted by the Board of Directors of the Corporation (the “Board”) on November 10, 2011 in accordance with the provisions of its Certificate of Incorporation (as amended and restated through the date hereof, the “Certificate of Incorporation”) and Bylaws.  The authorized series of the Corporation’s previously-authorized preferred stock
shall have the following preferences, privileges, powers and restrictions thereof, as follows:

RESOLVED, that pursuant to the authority granted to and vested in the Board in accordance with the provisions of the Certificate of Incorporation and by-laws of the Corporation, each as amended or amended and restated through the date hereof, the Board hereby authorizes a series of the Corporation’s previously authorized preferred stock (the “Preferred Stock”), and hereby states the designation and number of shares, and fixes the relative rights, preferences, privileges, powers and restrictions thereof as follows:

	
I.               

	
 NAME OF THE CORPORATION

 

CoroWare, Inc.

	
II.               

	
 DESIGNATION AND AMOUNT; DIVIDENDS

 

A.        Designation.   The designation of said series of preferred stock shall be Series D Convertible Preferred Stock, $0.001 par value per share (the “ Series D Preferred Stock ”).

 

B.         Number of Shares.  The number of shares of Series D Preferred Stock authorized shall be five hundred thousand (500,000) shares.  Each share of Series D Preferred Stock shall have a stated value equal to $1.00 (as may be adjusted for any stock dividends, combinations or splits with respect to such shares) (the “Series D Stated Value”).

 

C.         Dividends:  Initially, there will be no dividends due or payable on the Series D Preferred Stock. Any future terms with respect to dividends shall be determined by the Board consistent with the Corporation’s Certificate of Incorporation. Any and all such future terms concerning dividends shall be reflected in an amendment to this Certificate, which the Board shall promptly file or cause to be filed.

III.            LIQUIDATION PREFERENCE.

If the Corporation shall commence a voluntary case under the U.S. Federal bankruptcy laws or any other applicable bankruptcy, insolvency or similar law, or consent to the entry of an order for relief in an involuntary case under any law or to the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator (or other similar official) of the Corporation or of any substantial part of its property, or make an assignment for the benefit of its creditors, or admit in writing its inability to pay its debts generally as they become due, or if a decree or order for relief in respect of the Corporation shall be entered by a court having jurisdiction in the premises in an involuntary case under the
U.S. Federal bankruptcy laws or any other applicable bankruptcy, insolvency or similar law resulting in the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator (or other similar official) of the Corporation or of any substantial part of its property, or ordering the winding up or liquidation of its affairs, and any such decree or order shall be unstayed and in effect for a period of sixty (60) consecutive days and, on account of any such event, the Corporation shall liquidate, dissolve or wind up, or if the Corporation shall otherwise liquidate, dissolve or wind up, including, but not limited to, the sale or transfer of all or substantially all of the Corporation’s assets in one transaction or in a series of related transactions (a “Liquidation Event”), no distribution shall be made to the holders of any shares of capital stock of the
Corporation (other than Senior Securities and Pari Passu Securities) upon liquidation, dissolution or winding up unless prior thereto the Holders of shares of Series D Preferred Stock shall have received the Liquidation Preference (as defined below) with respect to each share. If, upon the occurrence of a Liquidation Event, the assets and funds available for distribution among the Holders of the Series D Preferred Stock and Holders of Pari Passu Securities shall be insufficient to permit the payment to such holders of the preferential amounts payable thereon, then the entire assets and funds of the Corporation legally available for distribution to the Series D Preferred Stock and the Pari Passu Securities shall be distributed ratably among such shares in proportion to the ratio that the Liquidation Preference payable on each such share bears to the aggregate Liquidation Preference
payable on all such shares.  The purchase or redemption by the Corporation of stock of any class, in any manner permitted by law, shall not, for the purposes hereof, be regarded as a liquidation, dissolution or winding up of the Corporation. Neither the consolidation or merger of the Corporation with or into any other entity nor the sale or transfer by the Corporation of substantially all of its assets shall, for the purposes hereof, be deemed to be a liquidation, dissolution or winding up of the Corporation.  The “Liquidation Preference” with respect to a share of Series D Preferred Stock means an amount equal to the Stated Value thereof. The Liquidation Preference with respect to any Pari Passu Securities shall be as set forth in the Certificate of Designation filed in respect thereof.

 

  

-1-

  

 IV.              CONVERSION.

(a)           Each outstanding share of Series D Preferred Stock shall be convertible into the number of shares of the Corporation’s common stock (“Common Stock”) determined by dividing the Stated Value by the Conversion Price as defined below, at the option of the Holder in whole or in part, at any time commencing no earlier than six (6) months after the Issuance Date; provided that any conversion under this section must be made during the ten (10) day period immediately following the date on which the Corporation files with the Securities and Exchange Commission any periodic report on form 10-Q, 10-K or the equivalent form; provided
further that, any conversion under this Section IV(a) shall be for a minimum Stated Value of $500.00 of Series D Preferred Stock. The Holder shall effect conversions by sending a conversion notice (the “Notice of Conversion”) in the manner set forth in Section IV(j).  Each Notice of Conversion shall specify the Stated Value of Series D Preferred Stock to be converted.  The date on which such conversion is to be effected (the “Conversion Date”) shall be on the date the Notice of Conversion is delivered pursuant to Section IV(j) hereof.  Except as provided herein, each Notice of Conversion, once given, shall be irrevocable.  Upon the entire conversion of the Series D Preferred Stock, the certificates for such Series D Preferred Stock shall be returned to the Corporation for cancellation.

 

(b)           Not later than ten (10) Business Days after the Conversion Date, the Corporation will deliver to the Holder (i) a certificate or certificates representing the number of shares of Common Stock being acquired upon the conversion of the Series D Preferred Stock and (ii) once received from the Corporation, the Series D Preferred Stock in principal amount equal to the principal amount of the Series D Preferred Stock not converted; provided, however, that the Corporation shall not be obligated to issue
certificates evidencing the shares of Common Stock issuable upon conversion of any Series D Preferred Stock until the Series D Preferred Stock are either delivered for conversion to the Corporation or any transfer agent for the Series D Preferred Stock or Common Stock, or the Holder notifies the Corporation that such Series D Preferred Stock certificates have been lost, stolen or destroyed and provides an agreement reasonably acceptable to the Corporation to indemnify the Corporation from any loss incurred by it in connection therewith.  In the case of a conversion pursuant to a Notice of Conversion, if such certificate or certificates are not delivered by the date required under this Section IV(b), the Holder shall be entitled, by providing written notice to the Corporation at any time on or before its receipt of such certificate or certificates thereafter, to rescind
such conversion, in which event the Corporation shall immediately return the Series D Preferred Stock tendered for conversion.

 

(c)           The Conversion Price for each share of Series D Preferred Stock in effect on any Conversion Date shall be (i) eighty five percent (85%) of the average closing bid price of the Common Stock over the twenty (20) trading days immediately preceding the date of conversion, (ii) but no less than Par Value of the Common Stock. For purposes of determining the closing bid price on any day, reference shall be to the closing bid price for a share of Common Stock on such date on the NASD OTC Bulletin Board, as reported on Bloomberg, L.P. (or similar organization or agency succeeding to its functions of reporting prices).

 

(d)           (i)           If the Corporation, at any time while any Series D Preferred Stock are outstanding, (A) shall pay a stock dividend or otherwise make a distribution or distributions on shares of its Junior Securities (as defined below) payable in shares of its capital stock (whether payable in shares of its Common Stock or of capital stock of any class), (B) subdivide outstanding shares of Common Stock into a larger number of shares, (C) combine outstanding shares of Common Stock into a smaller number of shares, or (D) issue by reclassification of shares of Common Stock any
shares of capital stock of the Corporation, the Conversion Price designated in Section IV(c) shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock of the Company outstanding before such event and of which the denominator shall be the number of shares of Common Stock outstanding after such event.  Any adjustment made pursuant to this Section IV(d) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or reclassification.

 

(ii)           If the Corporation, at any time while Series D Preferred Stock are outstanding, shall distribute to all holders of Common Stock (and not to Holders of Series D Preferred Stock) evidences of its indebtedness or assets or rights or warrants to subscribe for or purchase any security, then in each such case the Conversion Price at which each Series D Preferred Stock shall thereafter be convertible shall be determined by multiplying the Conversion Price in effect immediately prior to the record date fixed for determination of stockholders entitled to receive such distribution by a fraction of which the denominator shall be the Per Share Market Value
of Common Stock determined as of the record date mentioned above, and of which the numerator shall be such Per Share Market Value of the Common Stock on such record date less the then fair market value at such record date of the portion of such assets or evidence of indebtedness so distributed applicable to one outstanding share of Common Stock as determined by the Board of Directors in good faith; provided, however that in the event of a distribution exceeding ten percent (10%) of the net assets of the Corporation, such fair market value shall be determined by a nationally recognized or major regional investment banking firm or firm of independent certified public accountants of recognized standing (which may be the firm that regularly examines the financial
statements of the Corporation) (an “Appraiser”) selected in good faith by the Holders of a majority of the principal amount of the Series D Preferred Stock then outstanding; and provided, further, that the Corporation, after receipt of the determination by such Appraiser shall have the right to select an additional Appraiser, in which case the fair market value shall be equal to the average of the determinations by each such Appraiser.  In either case the adjustments shall be described in a statement provided to the Holder and all other Holders of Series D Preferred Stock of the portion of assets or evidences of indebtedness so distributed or such subscription rights applicable to one share of Common Stock.  Such adjustment
shall be made whenever any such distribution is made and shall become effective immediately after the record date mentioned above.

 

(iii)           All calculations under this Article IV shall be made to the nearest 1/1,000th of a cent or the nearest 1/1,000th of a share, as the case may be.  Any calculation resulting in a fraction shall be rounded up to the next cent or share.

 

(iv)           Whenever the Conversion Price is adjusted pursuant to Section IV(d)(ii) or (iii), the Corporation shall within ten  (10) days after the determination of the new Fixed Conversion Price mail and fax to the Holder and to each other Holder of Series D Preferred Stock, a notice setting forth the Fixed Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment.

 

  

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(v)           In case of any reclassification of the Common Stock, any consolidation or merger of the Corporation with or into another person, the sale or transfer of all or substantially all of the assets of the Corporation or any compulsory share exchange pursuant to which the Common Stock is converted into other securities, cash or property, then each holder of Series D Preferred Stock then outstanding shall have the right thereafter to convert such Series D Preferred Stock only into the shares of stock and other securities and property receivable upon or deemed to be held by holders of Common Stock following such reclassification, consolidation, merger,
sale, transfer or share exchange (except in the event the property is cash, then the Holder shall have the right to convert the Series D Preferred Stock and receive cash in the same manner as other stockholders), and the Holder shall be entitled upon such event to receive such amount of securities or property as the shares of the Common Stock into which such Series D Preferred Stock could have been converted immediately prior to such reclassification, consolidation, merger, sale, transfer or share exchange would have been entitled.  The terms of any such consolidation, merger, sale, transfer or share exchange shall include such terms so as to continue to give to the holder the right to receive the securities or property set forth in this Section IV(d)(v) upon any conversion following such consolidation, merger, sale, transfer or share exchange.  This provision
shall similarly apply to successive reclassifications, consolidations, mergers, sales, transfers or share exchanges.

 

(vi)           If:

 

	
  

	
(A)

	
the Corporation shall declare a dividend (or any other distribution) on its Common Stock; or

 

	
  

	
(B)

	
the Corporation shall declare a special nonrecurring cash dividend on or a redemption of its Common Stock; or

 

	
  

	
(C)

	
the Corporation shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights; or

 

	
  

	
(D)

	
the approval of any stockholders of the Corporation shall be required in connection with any reclassification of the Common Stock of the Corporation (other than a subdivision or combination of the outstanding shares of Common Stock), any consolidation or merger to which the Corporation is a party, any sale or transfer of all or substantially all of the assets of the Corporation, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property; or

 

	
  

	
(E)

	
the Corporation shall authorize the voluntary or involuntary dissolution, liquidation or winding-up of the affairs of the Corporation;

 

then the Corporation shall cause to be filed at each office or agency maintained for the purpose of conversion of Series D Preferred Stock, and shall cause to be mailed and faxed to the Holders of Series D Preferred Stock at their last addresses as it shall appear upon the Series D Preferred stock register, at least thirty (30) calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of Common Stock of record to be entitled to such dividend, distributions, redemption,
rights or warrants are to be determined, or (y) the date on which such reclassification, consolidation, merger, sale, transfer, share exchange, dissolution, liquidation or winding-up is expected to become effective, and the date as of which it is expected that holders of Common Stock of record shall be entitled to exchange their shares of Common Stock for securities or other property deliverable upon such reclassification, consolidation, merger, sale, transfer, share exchange, dissolution, liquidation or winding-up; provided, however, that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice.

 

(e)           Intentionally omitted.

 

(f)           The Corporation covenants that all shares of Common Stock that shall be issuable hereunder shall, upon issue, be duly and validly authorized, issued and fully paid and nonassessable.

 

(g)           No fractional shares of Common Stock shall be issuable upon a conversion hereunder and the number of shares to be issued shall be rounded up to the nearest whole share.  If a fractional share interest arises upon any conversion hereunder, the Corporation shall eliminate such fractional share interest by issuing the Holder an additional full share of Common Stock.

 

(h)           The issuance of certificates for shares of Common Stock on conversion of Series D Preferred Stock shall be made without charge to the Holder for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such certificate, provided that the Corporation shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such certificate upon conversion in a name other than that of the Holder and the Corporation shall not be required to issue or deliver such certificates unless or until the person or persons requesting the issuance thereof shall have
paid to the Corporation the amount of such tax or shall have established to the satisfaction of the Corporation that such tax has been paid.

 

  

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(i)           Series D Preferred Stock converted into Common Stock shall be canceled upon conversion.

 

(j)           Each Notice of Conversion shall be given by facsimile to the Corporation no later than 4:00 pm EST.  Any such notice shall be deemed given and effective upon the transmission of such facsimile at the current facsimile telephone number of the Company. In the event that the Corporation receives the Notice of Conversion after 4:00 p.m. EST, the Conversion Date shall be deemed to be the next Business Day.  In the event that the Corporation receives the Notice of Conversion after the end of the Business Day, notice will be
deemed to have been given the next Business Day.

V.        MANDATORY CONVERSION

(a) Each share of Series D Preferred Stock shall convert (the "Mandatory Conversion ") into shares of Common Stock upon written demand of the Corporation (" Mandatory Conversion Notice "), which demand shall be made no later than October 1, 2013, unless otherwise agreed by the mutual consent of the parties in writing.  The Mandatory Conversion Notice shall state the effective date of the Mandatory Conversion, which date shall be established by the Corporation in its sole and absolute discretion.

(b)          Mechanics of Mandatory Conversion.  The outstanding shares of Series D Preferred Stock shall be converted automatically without any further action by the holders of such shares and whether or not the certificates representing such shares are surrendered to the Corporation or its transfer agent.  Upon the effective date of the Mandatory Conversion, the only rights that the holders of the Series D Preferred Stock shall have will be to receive stock certificates for Common Stock; provided that the holder of the Series D Preferred Stock surrenders or causes to be surrendered the original certificates representing the Series D Preferred Stock being converted (the "
Preferred Stock Certificates "), duly endorsed.  The Corporation shall not be obligated to issue and deliver (issue and deliver to the holder of Series D Preferred Stock a stock certificate for the Common Stock into which the Series D Preferred Stock has been converted certificates evidencing the shares of Common Stock issuable upon such Mandatory Conversion)  unless and until the certificates evidencing the shares of Series D Preferred Stock are either delivered to the Corporation or its transfer agent, or the holder notifies the Corporation or its transfer agent that such certificates have been lost, stolen or destroyed and executes an agreement satisfactory to the Corporation to indemnify the Corporation from any loss incurred by it in connection with such certificates.

 

VI.              RANK

The Series D Preferred Stock shall, as to distribution of assets upon liquidation, dissolution or winding up of the Corporation, rank (i) prior to the Corporation’s Common Stock  (ii) prior to any class or series of capital stock of the Corporation hereafter created that, by its terms, ranks junior to the Series D Preferred Stock (“Junior Securities”); (iii) junior to the Series B Preferred Stock and any class or series of capital stock of the Corporation hereafter created which by its terms ranks senior to the Series D Preferred Stock (“Senior Securities”); (iv) pari passu with any other series of preferred stock of the Corporation hereafter created
which by its terms ranks on a parity (“Pari Passu Securities”) with the Series D Preferred Stock.

 

VII.             VOTING RIGHTS

Each one share of the Series D Preferred Stock shall have voting rights equal to one hundred thousand (100,000) votes of Common Stock. With respect to all matters upon which stockholders are entitled to vote or to which stockholders are entitled to give consent, the holders of the outstanding shares of Series D Preferred Stock shall vote together with the holders of Common Stock without regard to class, except as to those matters on which separate class voting is required by applicable law or the Corporation’s Certificate of Incorporation or by-laws.

 

VIII.             PROTECTION PROVISIONS

So long as any shares of Series D Preferred Stock are outstanding, the Corporation shall not, without first obtaining the unanimous written consent of the holders of Series D Preferred Stock, alter or change the rights, preferences or privileges of the Series D Preferred so as to affect adversely the holders of Series D Preferred Stock.

IX.              MISCELLANEOUS

 

A.         Status of Converted or Redeemed Stock: In case any shares of Series D Preferred Stock shall be redeemed or otherwise repurchased or reacquired, the shares so redeemed, repurchased, or reacquired shall resume the status of authorized but unissued shares of preferred stock, and shall no longer be designated as Series D Preferred Stock.

 

B.         Lost or Stolen Certificates: Upon receipt by the Corporation of (i) evidence of the loss, theft, destruction or mutilation of any Preferred Stock Certificate(s) and (ii) in the case of loss, theft or destruction, indemnity (with a bond or other security) reasonably satisfactory to the Corporation, or in the case of mutilation, the Preferred Stock Certificate(s) (surrendered for cancellation), the Corporation shall execute and deliver new Preferred Stock Certificates. However, the Corporation shall not be obligated to reissue such lost, stolen, destroyed
or mutilated Preferred Stock Certificates if the holder of Series D Preferred Stock contemporaneously requests the Corporation to convert such holder’s Series D Preferred.

  

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C.         Waiver: Notwithstanding any provision in this Certificate of Designation to the contrary, any provision contained herein and any right of the holders of Series D Preferred granted hereunder may be waived as to all shares of Series D Preferred Stock (and the holders thereof) upon the unanimous written consent of the holders of the Series D Preferred Stock.

D.         Notices: Any notices required or permitted to be given under the terms hereof shall be sent by certified or registered mail (return receipt requested) or delivered personally, by nationally recognized overnight carrier or by confirmed facsimile transmission, and shall be effective five (5) days after being placed in the mail, if mailed, or upon receipt or refusal of receipt, if delivered personally or by nationally recognized overnight carrier or confirmed facsimile transmission, in each case addressed to a party as set forth below, or such other address and telephone and fax number as may be designated in
writing hereafter in the same manner as set forth in this Section.

If to the Corporation:

 

CoroWare, Inc.

1410 Market Street

Kirkland, WA 98033

Attention: Lloyd Spencer;

Telephone: (800) 641-2676, x756

Facsimile: (425) 818-8990

If to the holders of Series D Preferred, to the address listed in the Corporation’s books and records.

  

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IN WITNESS WHEREOF, the undersigned, being the Chief Executive Officer and Secretary of CoroWare, Inc., hereby declare under penalty of perjury that the foregoing is a true and correct copy of the Certificate of Designation of the Rights and Preferences of the Series D Convertible Preferred Stock of CoroWare, Inc. duly adopted by the Board of Directors of CoroWare, Inc. on November 10, 2011 and this Certificate of Designation is executed by the undersigned on behalf of CoroWare, Inc. this 10th day of November, 2011.

 

	 	CoroWare, Inc.	 
	 	 	 	 
	
 

	
By: 

	/s/ Lloyd Spencer	 
	 	 	Lloyd Spencer	 
	 	 	Chief Executive Officer	 
	 	 	 	 

	 	 	 
	 	 	 	 
	
  

	
By: 

	/s/ Shanna Gerrard	 
	 	 	Shanna Gerrard	 
	 	 	Corporate Secretary	 
	 	 	 	 

  

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