Document:

ex10-1.htm

Exhibit 10.1

 

NII Capital Corp.

 

 

7.625% Senior Notes due 2021

 

 

________

 

Underwriting Agreement

 

 

December 5, 2011

 

Deutsche Bank Securities Inc.

60 Wall Street, 2nd Floor

New York, NY 10005

As representative of the several Underwriters

named in Schedule I hereto,

Ladies and Gentlemen:

 

NII Capital Corp., a Delaware corporation (the “Company”), proposes, subject to the terms and conditions stated herein, to issue and sell to the Underwriters named in Schedule I hereto (the “Underwriters”) an aggregate of $700,000,000 principal amount of the Notes of the Company, specified above (the “Notes”).  The Notes will be jointly and severally guaranteed (the “Guarantees” and, together with the Notes, the “Securities”) on a senior unsecured basis by NII Holdings, Inc. (the “Parent) and the entities listed on Schedule III hereto (collectively, with the Parent, the “Guarantors”).  The Securities will be issued pursuant to
an indenture, dated as of March 29, 2011 (the “Existing Indenture”), among the Company, the Guarantors, and Wilmington Trust Company, as trustee (the “Trustee”), as supplemented by a supplemental indenture to be dated as of December 8, 2011 (the “First Supplemental Indenture,” and together with the Existing Indenture, the “Indenture”) among the Company, the Guarantors and the Trustee.

 

1.           Each of the Company and the Guarantors, jointly and severally, represents and warrants to, and agrees with, each of the Underwriters that:

 

(a)           An “automatic shelf registration statement” as defined under Rule 405 under the Securities Act of 1933, as amended (the “Act”) on Form S-3 (File No. 333-178312) in respect of the Securities has been filed with the Securities and Exchange Commission (the “Commission”) not earlier than three years prior to the date hereof; such registration statement, and any post-effective amendment thereto, became effective

 

  

  

  

on filing; and no stop order suspending the effectiveness of such registration statement or any part thereof has been issued and no proceeding for that purpose has been initiated or threatened by the Commission, and no notice of objection of the Commission to the use of such registration statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under the Act has been received by the Company or any Guarantor (the prospectus filed as part of such registration statement, in the form in which it has most recently been filed with the Commission on or prior to the date of this Agreement, is hereinafter called the “Basic Prospectus”); any preliminary prospectus (including any preliminary
prospectus supplement) relating to the Securities filed with the Commission pursuant to Rule 424(b) under the Act, any preliminary prospectus filed with the Registration Statement and any prospectus used in connection with the offering of Securities that omitted information deemed part of the Registration Statement pursuant to Rule 430B is hereinafter called a “Preliminary Prospectus”; the various parts of such registration statement, including all exhibits thereto but excluding Form T-1 and including any prospectus or prospectus supplement relating to the Securities that is filed with the Commission and deemed by virtue of Rule 430B to be part of such registration statement, each as amended at the time such part of the registration statement became effective, are hereinafter collectively called the “Registration Statement”; the Basic Prospectus, as amended and
supplemented immediately prior to the Applicable Time (as defined in Section 1(c) hereof), is hereinafter called the “Pricing Prospectus”; the form of the final prospectus relating to the Securities filed with the Commission pursuant to Rule 424(b) under the Act in accordance with Section 5(a) hereof is hereinafter called the “Prospectus”; any reference herein to the Basic Prospectus, the Pricing Prospectus, any Preliminary Prospectus or the Prospectus shall be deemed to refer to and include the documents incorporated by reference therein pursuant to Item 12 of Form S-3 under the Act, as of the date of such prospectus; any reference to any amendment or supplement to the Basic Prospectus, any Preliminary Prospectus or the Prospectus shall be deemed to refer to and include any post-effective amendment to the Registration Statement, any prospectus or prospectus
supplement relating to the Securities filed with the Commission pursuant to Rule 424(b) under the Act and any documents filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and incorporated therein, in each case after the date of the Basic Prospectus, such Preliminary Prospectus or the Prospectus, as the case may be; any reference to any amendment to the Registration Statement shall be deemed to refer to and include any annual report of the Parent filed pursuant to Section 13(a) or 15(d) of the Exchange Act after the effective date of the Registration Statement that is incorporated by reference in the Registration Statement; and any “issuer free writing

 

  

2

  

prospectus” as defined in Rule 433 under the Act relating to the Securities is hereinafter called an “Issuer Free Writing Prospectus”);

 

(b)           No order preventing or suspending the use of any Preliminary Prospectus or any Issuer Free Writing Prospectus has been issued by the Commission, and each Preliminary Prospectus, at the time of filing thereof, conformed in all material respects to the requirements of the Act and the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”) and the rules and regulations of the Commission thereunder, and did not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading; provided, however, that this representation and warranty shall not apply to any statements or omissions made in reliance upon and in conformity with information furnished in writing to the Company or the Parent by an Underwriter through Deutsche Bank Securities Inc. expressly for use therein;

 

(c)           For the purposes of this Agreement, the “Applicable Time” is 5:02 p.m. (Eastern time) on the date of this Agreement; the Pricing Prospectus as supplemented by the final term sheet prepared and filed pursuant to Section 5(a) hereof, taken together (collectively, the “Pricing Disclosure Package”) as of the Applicable Time, did not include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; and each Issuer Free Writing
Prospectus listed on Schedule IV(a) hereto does not conflict with the information contained in the Registration Statement, the Pricing Prospectus or the Prospectus and each such Issuer Free Writing Prospectus, as supplemented by and taken together with the Pricing Disclosure Package as of the Applicable Time, did not include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that this representation and warranty shall not apply to statements or omissions made in an Issuer Free Writing Prospectus in reliance upon and in conformity with information furnished in writing to the Company or the Parent by an Underwriter through Deutsche Bank Securities Inc. expressly for use therein;

 

(d)           The documents incorporated by reference in the Pricing Prospectus and the Prospectus, when they were filed with the Commission, conformed in all material respects to the requirements of the Exchange Act and the rules and regulations of the Commission thereunder, and none of such documents contained an untrue statement

 

  

3

  

of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading; any further documents so filed and incorporated by reference in the Prospectus or any further amendment or supplement thereto, when such documents are filed with the Commission, will conform in all material respects to the requirements of the Exchange Act and the rules and regulations of the Commission thereunder and will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; provided, however, that this representation and warranty shall not apply to any
statements or omissions made in reliance upon and in conformity with information furnished in writing to the Company or the Parent by an Underwriter through Deutsche Bank Securities Inc. expressly for use therein; and no such documents were filed with the Commission since the Commission’s close of business on the business day immediately prior to the date of this Agreement and prior to the execution of this Agreement, except as set forth on Schedule IV(b) hereto;

 

(e)           The Registration Statement conforms, and the Prospectus and any further amendments or supplements to the Registration Statement and the Prospectus will conform, in all material respects to the requirements of the Act and the Trust Indenture Act and the rules and regulations of the Commission thereunder and do not and will not, as of the applicable effective date as to each part of the Registration Statement and as of the applicable filing date as to the Prospectus and any amendment or supplement thereto, contain an untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading; provided, however, that this representation and warranty shall not apply to any statements or omissions made in reliance upon and in conformity with information furnished in writing to the Company or the Parent by an Underwriter through Deutsche Bank Securities Inc. expressly for use therein;

 

(f)           There has not occurred any material adverse change, or any development involving a prospective material adverse change, in the condition, financial or otherwise, or in the earnings, business or operations of the Parent, the Company and the subsidiaries of the Parent listed on Schedule II (each, a “Subsidiary” and collectively, the “Subsidiaries”), taken as a whole, from that set forth in the Pricing Prospectus provided to prospective purchasers of the Securities (exclusive of any amendments or supplements thereto subsequent to the date of this Agreement);

 

(g)           Each of the Parent and the Company has been duly incorporated, is validly existing as a corporation in good standing under

 

  

4

  

the laws of the jurisdiction of its incorporation, has the corporate power and authority to own its property and to conduct its business as described in the Pricing Prospectus and is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing would not have a material adverse effect on the Parent, the Company and the Subsidiaries, taken as a whole (a “Material Adverse Effect”);

 

(h)           Each of the Subsidiaries has been duly organized, is validly existing as a corporation or limited liability company, as the case may be, in good standing under the laws of the jurisdiction of its incorporation or organization (to the extent that such jurisdiction recognizes the legal concept of good standing), has the power and authority to own its property and to conduct its business as described in the Pricing Prospectus and is duly qualified to transact business and is in good standing in each jurisdiction (to the extent that such jurisdiction recognizes the legal concept of good standing) in which
the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect.  All of the issued shares of capital stock, membership interests or equity interests, as the case may be, of the Company and each Subsidiary have been duly and validly authorized and issued, are fully paid and non assessable (to the extent that such jurisdiction recognizes the legal concept of non-assessability) and are owned directly or indirectly by the Parent and, except as described in the Pricing Prospectus, are free and clear of all liens, encumbrances, equities or claims.  The Subsidiaries listed on Schedule II are all of the subsidiaries of the Parent as of December 5, 2011 other than the Company and inactive subsidiaries;

 

(i)           The Parent has an authorized capitalization as set forth in the Pricing Prospectus and all of the issued and outstanding shares of capital stock of the Parent have been duly authorized and are validly issued, fully paid and non assessable;

 

(j)           The Notes have been duly authorized by the Company and, when executed and authenticated in accordance with the provisions of the Indenture, and delivered to and paid for by the Underwriters in accordance with the terms of this Agreement, will be valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, subject to the effects of applicable bankruptcy, insolvency, fraudulent conveyance and similar laws affecting creditors’ rights generally

 

  

5

  

and equitable principles of general applicability, and the registered holders of the Notes will be entitled to the benefits of the Indenture;

 

(k)           The Guarantee by each Guarantor set forth in the Indenture has been duly authorized by such Guarantor and, when the Indenture has been executed and delivered by the parties thereto as of the Time of Delivery (as defined below) and the Securities have been delivered to and paid for by the Underwriters in accordance with the terms of this Agreement, will be a valid and binding obligation of such Guarantor, enforceable against the Guarantors in accordance with its terms, subject to the effects of applicable bankruptcy, insolvency, fraudulent conveyance and similar laws affecting creditors’ rights
generally and equitable principles of general applicability;

 

(l)           This Agreement has been duly authorized, executed and delivered by the Company and the Guarantors;

 

(m)         The Indenture has been duly authorized by the Company and each Guarantor and, when executed and delivered by the parties thereto as of the Time of Delivery (as defined below), will be a valid and binding agreement of the Company and each Guarantor enforceable against the Company and each Guarantor in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance or similar laws affecting creditors’ rights generally and general principles of equity.  The Indenture is substantially in the form filed as an exhibit to the Registration Statement; the Indenture has been
duly authorized and qualified under the Trust Indenture Act;

 

(n)           Subsequent to the date as of which information is given in the Pricing Prospectus, (i) none of the Parent, the Company or any of the Subsidiaries has incurred any material liability or obligation, direct or contingent, nor entered into any material transaction, in each case, not in the ordinary course of business or not described in or contemplated by the Pricing Prospectus; (ii) the Parent has not purchased any of its outstanding capital stock, or declared, paid or otherwise made any dividend or distribution of any kind on its capital stock (other than repurchases of unvested shares of the Parent’s
capital stock pursuant to its equity incentive plans and repurchases described in or contemplated by the Pricing Prospectus); and (iii) there has not been any material change in the capital stock, short-term debt or long-term debt of the Company or any Guarantor, except in each case as described in or contemplated by the Pricing Prospectus;

 

(o)           The execution and delivery by the Company and each Guarantor of, and the performance by the Company and each Guarantor of their respective obligations under, this Agreement, the Indenture, and

 

  

6

  

the Securities will not contravene any provision of (i) applicable law, (ii) the certificate of incorporation or by-laws of the Company and the Guarantors or (iii) any agreement or other instrument binding upon the Parent, the Company or any of the Subsidiaries, or any judgment, order or decree of any governmental body, agency or court having jurisdiction over the Parent, the Company or any Subsidiary, except, with respect to clauses (i) and (iii), to the extent that any contravention would not have a Material Adverse Effect.  No consent, approval, authorization or order of, or qualification with, any governmental body or agency is required for the performance by the Company or the Guarantors of their respective
obligations under this Agreement, the Indenture, or the Securities, except such as have been obtained or may be required by the securities or Blue Sky laws of the various states in connection with the offer and sale of the Securities and as to which the failure to so obtain would not have a material adverse effect on the ability of the Company or the Guarantors to perform their respective obligations under this Agreement, the Indenture and the Securities;

 

(p)           Except as described or incorporated by reference in the Pricing Prospectus, each of the Parent, the Company and the Subsidiaries (i) has all necessary licenses, consents, authorizations, approvals, orders, certificates and permits of and from, and has made all declarations and filings, if any, with all federal, state and local and foreign governmental, administrative or regulatory authorities and organizations, to own, lease, license and use its properties and assets and to conduct its business in the manner described in the Pricing Prospectus, including providing digital enhanced specialized mobile
radio services as currently conducted by them, except to the extent that the failure to obtain such licenses, consents, authorizations, approvals, orders, certificates and permits or make such declarations and filings, if any, would not have a Material Adverse Effect and (ii) has not received any notice of proceedings relating to the violation, revocation or modification of any such license, consent, authorization, approval, order, certificate or permit which, singly or in the aggregate, if the subject of any unfavorable decision, ruling or finding, would reasonably be expected to result in a Material Adverse Effect;

 

(q)           None of the Parent, the Company or any of the Subsidiaries is in violation of its certificate of incorporation or by-laws (or comparable corporate documents) and none of the Parent, the Company or any of the Subsidiaries is in default in the performance or observance of any obligation, agreement, covenant or condition contained in any contract, indenture, mortgage, deed of trust, loan or credit agreement, note, lease or other agreement or instrument to which the Parent, the Company or any of the Subsidiaries is a party or by which it or any of them may be bound, or to which any of the property or
assets of the Parent, the

 

  

7

  

Company or any Subsidiary is subject, except for such violations or defaults that are described in the Pricing Prospectus or would not result in a Material Adverse Effect;

 

(r)           There are no legal or governmental proceedings pending or, to the Parent’s knowledge, threatened to which the Parent, the Company or any of the Subsidiaries is a party or to which any of the properties of the Parent, the Company or any of the Subsidiaries is subject, other than proceedings accurately described in the Pricing Prospectus, that would have a material adverse effect on the power or ability of the Company or the Guarantors to perform their respective obligations under this Agreement, the Indenture, or the Securities or to consummate the transactions contemplated by the Pricing
Prospectus;

 

(s)           Other than as set forth in the Pricing Prospectus, there are no legal or governmental proceedings pending to which the Company or any of its subsidiaries is a party or of which any property of the Company or any of its subsidiaries is the subject which, if determined adversely to the Company or any of its subsidiaries, would individually or in the aggregate have a material adverse effect on the current or future financial position, stockholders’ equity or results of operations of the Company and its subsidiaries; and, to the best of the Company’s or any Guarantor’s knowledge, no such
proceedings are threatened or contemplated by governmental authorities or threatened by others;

 

(t)           None of the Company or any of the Guarantors is, or after giving effect to the offering and sale of the Securities, and the consummation of the transactions and the application of the proceeds thereof as described in each of the Pricing Prospectus and the Prospectus, will be, required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended;

 

(u)           (A) (i) At the time of filing the Registration Statement, (ii) at the time of the most recent amendment thereto for the purposes of complying with Section 10(a)(3) of the Act (whether such amendment was by post-effective amendment, incorporated report filed pursuant to Section 13 or 15(d) of the Exchange Act or form of prospectus), and (iii) at the time the Company, Parent or any person acting on their behalf (within the meaning, for this clause only, of Rule 163(c) under the Act) made any offer relating to the Securities in reliance on the exemption of Rule 163 under the Act, the Parent was a
“well-known seasoned issuer” as defined in Rule 405 under the Act; and (B) at the earliest time after the filing of the Registration Statement that the Company or another offering participant made a bona fide offer (within the meaning of Rule 164(h)(2) under the

 

  

8

  

Act) of the Securities, the Parent was not an “ineligible issuer” as defined in Rule 405 under the Act;

 

(v)           PricewaterhouseCoopers LLP, who has issued a report with respect to the financial statements and supporting schedules for the Parent incorporated by reference in the Registration Statement, the Pricing Prospectus, and the Prospectus is an independent registered public accounting firm as required by the Public Accounting Oversight Board (United States), the Securities Act and the rules and regulations of the Commission thereunder;

 

(w)           The consolidated financial statements, together with the related schedules and notes, incorporated by reference in the Pricing Prospectus present fairly the financial position of the Parent and its consolidated subsidiaries at the dates indicated and the consolidated statements of operations, changes in stockholders’ equity and cash flows of the Parent and its consolidated subsidiaries for the periods specified (subject, in the case of unaudited financial statements, if any, to normal year-end adjustments); and said financial statements have been prepared in conformity with United States
generally accepted accounting principles (“U.S. GAAP”) applied on a consistent basis throughout the periods involved;

 

(x)           Except as disclosed or incorporated by reference in the Pricing Prospectus, the Parent, the Company and each of the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with U.S. GAAP and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and
(iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences;

 

(y)           Except as disclosed or incorporated by reference in the Pricing Prospectus, the Parent’s internal control over financial reporting, as determined in Rule 13a-15(f) of the Exchange Act, were evaluated for effectiveness by management of the Parent and were determined to be effective as of December 31, 2010, and since the date of the latest audited financial statements included in the Pricing Prospectus, there has been no change in the Parent’s internal control over financial reporting that has materially adversely affected, or is reasonably likely to materially adversely affect, the
Parent’s internal control over financial reporting;

 

  

9

  

(z)           Except as disclosed or incorporated by reference in the Pricing Prospectus, the Parent maintains disclosure controls and procedures (as such term is defined in Rule 13a-15(e) of the Exchange Act) that have been designed to ensure that information relating to the Parent and its Subsidiaries that is required to be disclosed by the Parent in the reports that it files or submits under the Exchange Act is made known to the Parent’s management, including its principal executive officer and principal financial officer, and by others within those entities as appropriate to allow timely decisions
regarding required disclosure; except as disclosed or incorporated by reference in the Pricing Prospectus, such disclosure controls and procedures were evaluated for effectiveness by management of the Parent and were determined to be effective as of December 31, 2010, and since the date of such evaluation, there have been no significant changes in the disclosure controls and procedures that are reasonably likely to materially adversely affect the disclosure controls and procedures;

 

(aa)           Except as disclosed or incorporated by reference in the Pricing Prospectus, the Parent is in compliance in all material respects with applicable provisions of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith that are effective as of the date hereof.

 

(bb)           None of the Parent, the Company or any of the Subsidiaries has committed any act in violation of the Foreign Corrupt Practices Act, as amended (the “FCPA”), that would have a Material Adverse Effect; the Parent maintains policies and procedures designed to ensure compliance with the FCPA and such policies and procedures are effective as of the date hereof.

 

(cc)           Except as described or incorporated by reference in the Pricing Prospectus, there are no contracts, agreements or understandings between the Company or any Guarantor and any person granting such person the right to require the Company or any Guarantor to file a registration statement under the Securities Act with respect to any securities of the Company or any Guarantor;

 

(dd)           The operations of the Parent, the Company and the Subsidiaries are and have been conducted at all times in material compliance with all applicable financial recordkeeping and reporting requirements, including those of the Bank Secrecy Act, as amended by Title III of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act), and the applicable anti-money laundering statutes of jurisdictions where the Parent, the Company and the Subsidiaries conduct

 

  

10

  

business, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Anti-Money Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Parent, the Company or any of the Subsidiaries with respect to the Anti-Money Laundering Laws is pending or, to the knowledge of the Parent, threatened.

 

(ee)           None of the Parent, the Company nor any of the Subsidiaries (collectively, the “Entity”) or any director, officer, employee, agent, affiliate or representative of the Entity, is an individual or entity (“Person”) that is, or is owned or controlled by a Person that is:

 

(A)  the subject of any sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”) or other relevant sanctions authority (collectively, “Sanctions”), nor

 

(B)  located, organized or resident in a country or territory that is the subject of Sanctions (including, without limitation, Burma/Myanmar, Cuba, Iran, North Korea, Sudan and Syria).

 

(ii)  The Entity represents and covenants that it will not, directly or indirectly, use the proceeds of the offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person:

 

(A)  to fund or facilitate any activities or business of or with any Person or in any country or territory that, at the time of such funding or facilitation, is the subject of Sanctions; or

 

(B)  in any other manner that will result in a violation of Sanctions by any Person (including any Person participating in the offering, whether as underwriter, advisor, investor or otherwise).

 

(ff)           The Parent, the Company and the Subsidiaries (i) are in compliance with any and all applicable foreign, federal, state and local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”), (ii) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in compliance with all terms and conditions of any such permit, license or approval, except where such
noncompliance with Environmental Laws, failure to receive required permits, licenses or other approvals or failure to

 

  

11

  

comply with the terms and conditions of such permits, licenses or approvals would not, singly or in the aggregate, have a Material Adverse Effect;

 

(gg)           To the knowledge of the Parent, there are no costs or liabilities associated with Environmental Laws (including, without limitation, any capital or operating expenditures required for clean-up, closure of properties or compliance with Environmental Laws or any permit, license or approval, any related constraints on operating activities and any potential liabilities to third parties) which would, singly or in the aggregate, have a Material Adverse Effect;

 

(hh)           The Parent, the Company and the Subsidiaries own or have the right to use, or can acquire or obtain the right to use on reasonable terms, adequate patents, patent rights, licenses, inventions, copyrights, know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems or procedures), trademarks, service marks, trade names or other intellectual property (collectively, “Intellectual Property”) necessary to carry on the business now operated by them, except where the failure to own or have the right to use such Intellectual Property
would not, singly or in the aggregate, have a Material Adverse Effect, or except as described or incorporated by reference in the Pricing Prospectus.  None of the Parent, the Company or any of the Subsidiaries has received any notice or is otherwise aware of any infringement of or conflict with asserted rights of others with respect to any Intellectual Property or of any facts or circumstances which would render any Intellectual Property invalid or inadequate to protect the interest of the Parent, the Company or any of the Subsidiaries therein, and which infringement or conflict (if the subject of any unfavorable decision, ruling or finding) or invalidity or inadequacy, singly or in the aggregate, would result in a Material Adverse Effect.

 

2.           Subject to the terms and conditions herein set forth, the Company agrees to issue and sell to each of the Underwriters, and each of the Underwriters agrees, severally and not jointly, to purchase from the Company, at a purchase price of 97% of the principal amount thereof, plus accrued interest, if any, from December 8, 2011 to the Time of Delivery (as defined below) hereunder, the principal amount of Securities set forth opposite the name of such Underwriter in Schedule I hereto.

 

3.           Upon the authorization by you of the release of the Securities, the several Underwriters propose to offer the Securities for sale upon the terms and conditions set forth in the Prospectus.

 

4.           (a)  The Securities to be purchased by each Underwriter hereunder will be represented by one or more definitive global Securities in book-entry form

 

  

12

  

which will be deposited by or on behalf of the Company with The Depository Trust Company (“DTC”) or its designated custodian.  The Company will deliver the Securities to Deutsche Bank Securities Inc., for the account of each Underwriter, against payment by or on behalf of such Underwriter of the purchase price therefor by wire transfer of Federal (same-day) funds to the account specified by the Company or the Parent to Deutsche Bank Securities Inc. at least forty-eight hours in advance, by causing DTC to credit the Securities to the account of Deutsche Bank Securities Inc. at DTC.  The Company will cause the certificates representing the Securities to be made available to Deutsche Bank
Securities Inc. for checking at least twenty-four hours prior to the Time of Delivery (as defined below) at the office of DTC or its designated custodian (the “Designated Office”).  The time and date of such delivery and payment shall be 9:30 a.m., New York City time, on December 8, 2011 or such other time and date as Deutsche Bank Securities Inc. and the Company or the Parent may agree upon in writing.  Such time and date are herein called the “Time of Delivery”.

 

(b)           The documents to be delivered at the Time of Delivery by or on behalf of the parties hereto pursuant to Section 8 hereof, including the cross-receipt for the Securities and any additional documents requested by the Underwriters pursuant to Section 8 hereof, will be delivered at the offices of Shearman & Sterling LLP, 599 Lexington Avenue, New York, NY 10022 (the “Closing Location”), and the Securities will be delivered at the Designated Office, all at the Time of
Delivery.  A meeting will be held at the Closing Location at 4:00 p.m., New York City time, on the New York Business Day next preceding the Time of Delivery, at which meeting the final drafts of the documents to be delivered pursuant to the preceding sentence will be available for review by the parties hereto.  For the purposes of this Section 4, “New York Business Day” shall mean each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in New York City are generally authorized or obligated by law or executive order to close.

 

5.           Each of the Guarantors and the Company agree, jointly and severally, with each of the Underwriters:

 

(a)           To prepare the Prospectus in a form approved by you and to file such Prospectus pursuant to Rule 424(b) under the Act not later than the Commission's close of business on the second business day following the execution and delivery of this Agreement; to make no further amendment or any supplement to the Registration Statement, the Basic Prospectus, any Preliminary Prospectus or the Prospectus prior to the Time of Delivery which shall be disapproved by you promptly after reasonable notice thereof; to advise you, promptly after it receives notice thereof, of the time when any amendment to the
Registration Statement has been filed or becomes effective or any amendment or supplement to the Prospectus has been filed and to furnish you with copies

 

  

13

  

thereof; to prepare a final term sheet, containing solely a description of the Securities, in a form approved by you and to file such term sheet pursuant to Rule 433(d) under the Act within the time required by such Rule; to file promptly all other material required to be filed by the Company or the Guarantors with the Commission pursuant to Rule 433(d) under the Act; to file promptly all reports and any definitive proxy or information statements required to be filed by the Company or the Guarantors with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to the date of the Prospectus and for so long as the delivery of a prospectus (or in lieu thereof, the notice referred to
in Rule 173(a) under the Act) is required in connection with the offering or sale of the Securities; to advise you, promptly after it receives notice thereof, of the issuance by the Commission of any stop order or of any order preventing or suspending the use of any Preliminary Prospectus or other prospectus in respect of the Securities, of any notice of objection of the Commission to the use of the Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under the Act, of the suspension of the qualification of the Securities for offering or sale in any jurisdiction, of the initiation or threatening of any proceeding for any such purpose, or of any request by the Commission for the amending or supplementing of the Registration Statement or the Prospectus or for additional information; and, in the event of the issuance of any stop order or of any order
preventing or suspending the use of any Preliminary Prospectus or other prospectus or suspending any such qualification, to promptly use its best efforts to obtain the withdrawal of such order; and in the event of any such issuance of a notice of objection, promptly to take such steps including, without limitation, amending the Registration Statement or filing a new registration statement, at its own expense, as may be necessary to permit offers and sales of the Securities by the Underwriters (references herein to the Registration Statement shall include any such amendment or new registration statement);

 

(b)           If required by Rule 430B(h) under the Act, to prepare a form of prospectus in a form approved by you and to file such form of prospectus pursuant to Rule 424(b) under the Act not later than may be required by Rule 424(b) under the Act; and to make no further amendment or supplement to such form of prospectus which shall be disapproved by you promptly after reasonable notice therereof;

 

(c)           If by the third anniversary (the “Renewal Deadline”) of the initial effective date of the Registration Statement, any of the Securities remain unsold by the Underwriters, the Company and the Guarantors will file, if they have not already done so and is eligible to do so, a new automatic shelf registration statement relating to the Securities, in a form satisfactory to you.  If at the Renewal Deadline the Parent is no longer eligible to file an automatic shelf registration statement, the Company and the Guarantors will, if they have not already done so, file a new shelf
registration statement relating to the Securities,

 

  

14

  

in a form satisfactory to you and will use its best efforts to cause such registration statement to be declared effective within 180 days after the Renewal Deadline.  The Company and the Guarantors will take all other action necessary or appropriate to permit the public offering and sale of the Securities to continue as contemplated in the expired registration statement relating to the Securities.  References herein to the Registration Statement shall include such new automatic shelf registration statement or such new shelf registration statement, as the case may be;

 

(d)           Promptly from time to time to take such action as you may reasonably request to qualify the Securities for offering and sale under the securities laws of such jurisdictions as you may request and to comply with such laws so as to permit the continuance of sales and dealings therein in such jurisdictions for as long as may be necessary to complete the distribution of the Securities, provided that in connection therewith the Company or any Guarantor shall not be required to qualify as a foreign corporation or to file a general consent to
service of process in any jurisdiction;

 

(e)           (1) Prior to 10:00 a.m., New York City time, on the New York Business Day next succeeding the date of this Agreement and from time to time, to furnish the Underwriters with written and electronic copies of the Prospectus in New York City in such quantities as you may reasonably request, and, if the delivery of a prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Act) is required at any time prior to the expiration of nine months after the time of issue of the Prospectus in connection with the offering or sale of the Securities and if at such time any event shall have
occurred as a result of which the Prospectus as then amended or supplemented would include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made when such Prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Act) is delivered, not misleading, or, if for any other reason it shall be necessary during such same period to amend or supplement the Prospectus or to file under the Exchange Act any document incorporated by reference in the Prospectus in order to comply with the Act, the Exchange Act or the Trust Indenture Act, to notify you and upon your request to file such document and to prepare and furnish without charge to each Underwriter and to any dealer in securities as many written and electronic copies as you may from time to
time reasonably request of an amended Prospectus or a supplement to the Prospectus which will correct such statement or omission or effect such compliance; and in case any Underwriter is required to deliver a prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Act) in connection with sales of any of the Securities at any time nine months or more after the time of issue of the Prospectus, upon your request but at the expense of such Underwriter, to prepare and deliver to such Underwriter as many written and electronic copies as you may request of an amended or supplemented

 

  

15

  

Prospectus complying with Section 10(a)(3) of the Act, and (2) if at any time prior to the Time of Delivery any event shall occur or condition shall exist as a result of which the Pricing Prospectus as then amended or supplemented would include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances, not misleading or, if for any other reason it shall be necessary during such same period to amend or supplement the Pricing Prospectus to comply with the Act, the Exchange Act or the Trust Indenture Act, to immediately notify the Underwriters thereof and forthwith prepare and file with the Commission (to the extent
required) and furnish to the Underwriters and to such dealers as you may designate, such amendments or supplements to the Pricing Prospectus as may be necessary so that the statements in the Pricing Prospectus as so amended or supplemented will not, in the light of the circumstances, be misleading or so that the Pricing Prospectus will comply with the Act, the Exchange Act or the Trust Indenture Act;

 

(f)           To make generally available to its securityholders as soon as practicable, but in any event not later than sixteen months after the effective date of the Registration Statement (as defined in Rule 158(c) under the Act), an earnings statement of the Parent and its Subsidiaries (which need not be audited) complying with Section 11(a) of the Act and the rules and regulations of the Commission thereunder (including, at the option of the Parent, Rule 158);

 

(g)           Without the prior written consent of Deutsche Bank Securities Inc. on behalf of the Underwriters, it will not, during the period ending 30 days after the date of the Prospectus, offer, sell, contract to sell, pledge or otherwise dispose of any debt securities of the Parent or the Company or warrants to purchase debt securities of the Parent or the Company substantially similar to the Securities (other than the sale of the Securities under this Agreement);

 

(h)           To pay the required Commission filing fees relating to the Securities within the time required by Rule 456(b)(1) under the Act without regard to the proviso therein and otherwise in accordance with Rules 456(b) and 457(r) under the Act; and

 

(i)           To use the net proceeds received by it from the sale of the Securities pursuant to this Agreement in the manner specified in the Pricing Prospectus under the caption “Use of Proceeds.”

 

6.

 

(a)         (i)           Each of the Guarantor and the Company, jointly and severally, represents and agrees that, other than the final term sheet prepared and filed pursuant to Section 5(a) hereof, without the prior consent of Deutsche Bank Securities Inc., it has not made and will not make any offer relating to the

 

  

16

  

Securities that would constitute a “free writing prospectus” as defined in Rule 405 under the Act;

 

(ii)           each Underwriter represents and agrees that, without the prior consent of the Company and Deutsche Bank Securities Inc., other than one or more term sheets relating to the Securities containing customary information and conveyed to purchasers of Securities or a free writing prospectus that is not an Issuer Free Writing Prospectus (other than the final term sheet prepared and filed pursuant to Section 5(a) hereof) and that contains only information describing the preliminary terms of the Securities or their offering or information that is included in the
Pricing Prospectus or the final term sheet, it has not made and will not make any offer relating to the Securities that would constitute a free writing prospectus; and

 

(iii)           any such free writing prospectus the use of which has been consented to by the Company and Deutsche Bank Securities Inc. (including the final term sheet prepared and filed pursuant to Section 5(a) hereof) is listed on Schedule IV(a) hereto;

 

(b)           The Company and the Guarantors have complied and will comply with the requirements of Rule 433 under the Act applicable to any Issuer Free Writing Prospectus, including timely filing with the Commission or retention where required and legending; and

 

(c)           Each of the Guarantors and the Company, severally and jointly, agree that if at any time following issuance of an Issuer Free Writing Prospectus any event occurred or occurs as a result of which such Issuer Free Writing Prospectus would conflict with the information in the Registration Statement, the Pricing Prospectus or the Prospectus or would include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances then prevailing, not misleading, the Company or any Guarantor will give prompt notice thereof
to Deutsche Bank Securities Inc. and, if requested by Deutsche Bank Securities Inc., will prepare and furnish without charge to each Underwriter an Issuer Free Writing Prospectus or other document which will correct such conflict, statement or omission; provided, however, that this representation and warranty shall not apply to any statements or omissions in an Issuer Free Writing Prospectus made in reliance upon and in conformity with information furnished in writing to the Parent by an Underwriter through Deutsche Bank Securities Inc. expressly for use therein.

 

7.           Each of the Guarantors and the Company covenants and agrees, jointly and severally, with the several Underwriters that the Company or the Guarantors will pay or cause to be paid the following: (i) the fees, disbursements and expenses of the Company’s and the Guarantors’ counsel and accountants in connection with the registration of the Securities under the Act and all other

 

  

17

  

expenses in connection with the preparation, printing, reproduction and filing of the Registration Statement, the Basic Prospectus, any Preliminary Prospectus, any Issuer Free Writing Prospectus and the Prospectus and amendments and supplements thereto and the mailing and delivering of copies thereof to the Underwriters and dealers; (ii) the cost of printing or producing (which does not include legal fees of the Underwriters associated therewith) any Agreement among Underwriters, this Agreement, the Indenture, closing documents (including any compilations thereof) and any other documents in connection with the offering, purchase, sale and delivery of the Securities; (iii) all expenses in connection with the
qualification of the Securities for offering and sale under state securities laws as provided in Section 5(d) hereof, including the fees and disbursements of counsel for the Underwriters in connection with such qualification and in connection with the Blue Sky survey, including the costs of printing and producing thereof; (iv) any fees charged by securities rating services for rating the Securities; (v) the filing fees incident to, and the fees and disbursements of counsel for the Underwriters in connection with, any required review by the Financial Industry Regulatory Authority, Inc. of the terms of the sale of the Securities; (vi) all fees and expenses, if any, in connection with listing the Securities; (vii) the cost of preparing the Securities; (viii) the fees and expenses of the Trustee and any agent of the Trustee and the fees and disbursements of counsel for the Trustee in
connection with the Indenture and the Securities; (ix) the costs and expenses of the Company and the Guarantors relating to investor presentations on any “road show” undertaken in connection with the marketing of the offering of the Securities, including, without limitation, expenses associated with the preparation or dissemination of any electronic road show, expenses associated with production of road show slides and graphics, fees and expenses of any consultants engaged in connection with the road show presentations with the prior approval of the Parent, travel and lodging expenses of the representatives and officers of the Company and the Guarantors and any such consultants, and the cost of any aircraft chartered in connection with the road show; and (x) all other costs and expenses incident to the performance of its obligations hereunder which are not otherwise
specifically provided for in this Section.  It is understood, however, that, except as provided in this Section, and Sections 9 and 12 hereof, the Underwriters will pay all of their own costs and expenses, including the fees of their counsel, transfer taxes on resale of any of the Securities by them, and any advertising expenses connected with any offers they may make.

 

8.           The obligations of the Underwriters hereunder shall be subject, in their discretion, to the condition that all representations and warranties and other statements of the Company and the Guarantors herein are, at and as of the Time of Delivery, true and correct, the condition that the Company and the Guarantors shall have performed all of its obligations hereunder theretofore to be performed, and the following additional conditions:

 

  

18

  

(a)           The Prospectus shall have been filed with the Commission pursuant to Rule 424(b) under the Act within the applicable time period prescribed for such filing by the rules and regulations under the Act and in accordance with Section 5(a) hereof; the final term sheet contemplated by Section 5(a) hereof, and any other material required to be filed by the Company or any Guarantor pursuant to Rule 433(d) under the Act, shall have been filed with the Commission within the applicable time periods prescribed for such filings by Rule 433; no stop order suspending the effectiveness of the Registration Statement or any part thereof shall have been issued and no
proceeding for that purpose shall have been initiated or threatened by the Commission and no notice of objection of the Commission to the use of the Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under the Act shall have been received; no stop order suspending or preventing the use of the Prospectus or any Issuer Free Writing Prospectus shall have been initiated or threatened by the Commission; and all requests for additional information on the part of the Commission shall have been complied with to your reasonable satisfaction;

 

(b)           Shearman & Sterling LLP, counsel for the Underwriters, shall have furnished to you such written opinion or opinions, dated the Time of Delivery, in form and substance satisfactory to you, and such counsel shall have received such papers and information as they may reasonably request to enable them to pass upon such matters;

 

(c)           Williams Mullen, special counsel for the Parent, shall have furnished to you their written opinion (a form of such opinion is attached as Annex I hereto), dated the Time of Delivery, in form and substance satisfactory to you;

 

(d)           Special foreign counsel for the Parent in Argentina, Brazil, Chile, Mexico and Peru shall have furnished to you their written opinion (a form of such opinion is attached as Annex II(a), (b), (c), (d) and (e), respectively, hereto), dated the Time of Delivery, in form and substance satisfactory to you;

 

(e)           On the date of the Prospectus at a time prior to the execution of this Agreement, at 9:30 a.m., New York City time, on the effective date of any post effective amendment to the Registration Statement filed subsequent to the date of this Agreement and also at the Time of Delivery, PricewaterhouseCoopers LLP shall have furnished to you a letter or letters, dated the respective dates of delivery thereof, in form and substance satisfactory to you;

 

(f)           There shall not have occurred any change, or any development involving a prospective change, in the condition, financial or otherwise, or in the earnings, business or operations of the Parent, the Company and the Subsidiaries, taken as a whole, from that set forth in the Pricing Prospectus (exclusive of any amendments or supplements thereto subsequent to the date of this Agreement) that, in your judgment, is material and adverse and that makes it, in your judgment, impracticable to market the Securities on the terms and in the manner contemplated in the Pricing Prospectus;

 

  

19

  

(g)           On or after the Applicable Time, there shall not have occurred any downgrading, nor shall any notice have been given of any intended or potential downgrading or of any review for a possible change that does not indicate the direction of the possible change, in the rating accorded any of the Company’s or any Guarantor’s securities by any “nationally recognized statistical rating organization,” as such term is used under Section 15E of the Exchange Act;

 

(h)           On or after the Applicable Time there shall not have occurred any of the following: (i) a suspension or material limitation in trading in securities generally on the New York Stock Exchange or on the Nasdaq Global Select Market; (ii) a suspension or material limitation in trading in the Parent’s securities on the Nasdaq Global Select Market; (iii) a general moratorium on commercial banking activities declared by either Federal or New York State authorities or a material disruption in commercial banking or securities settlement or clearance services in the United States; (iv) the outbreak or
escalation of hostilities involving the United States or the declaration by the United States of a national emergency or war or (v) the occurrence of any other calamity or crisis or any change in financial, political or economic conditions in the United States or elsewhere, if the effect of any such event specified in  clause (iv) or (v) in your judgment makes it impracticable or inadvisable to proceed with the public offering or the delivery of the Securities on the terms and in the manner contemplated in the Prospectus;

 

(i)           The Company and the Guarantors shall have complied with the provisions of Section 5(e) hereof with respect to the furnishing of prospectuses on the New York Business Day next succeeding the date of this Agreement;

 

(j)           The Company and the Guarantors shall have furnished or caused to be furnished to you at the Time of Delivery certificates of officers of the Company and the Guarantors satisfactory to you as to the accuracy of the representations and warranties of the Company and the Guarantors herein at and as of such time, as to the performance by the Company and the Guarantors of all of its obligations hereunder to be performed at or prior to such time, as to the matters set forth in subsections (a) and (g) of this Section and as to such other matters as you may
reasonably request.  The officer signing and delivering such certificate may rely upon the best of his or her knowledge as to proceedings threatened.

 

9.           (a)           Each of the Company and the Guarantors will indemnify and hold harmless each Underwriter against any losses, claims, damages or liabilities, joint or several, to which such Underwriter may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) an untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or arise out of or are
based upon the omission or alleged omission to

 

  

20

  

state therein a material fact required to be stated therein or necessary to make the statements therein not misleading or (ii) any untrue statement or alleged untrue statement of a material fact contained in the Basic Prospectus, any Preliminary Prospectus, the Pricing Prospectus, or the Prospectus, or any amendment or supplement thereto, any Issuer Free Writing Prospectus or any “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Act, or arise out of or are based upon the omission or alleged omission to state therein a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and will reimburse each
Underwriter for any legal or other expenses reasonably incurred by such Underwriter in connection with investigating or defending any such action or claim as such expenses are incurred; provided, however, that neither the Company nor the Guarantor shall be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, the Basic Prospectus, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any amendment or supplement thereto, or any Issuer Free Writing Prospectus, in reliance upon and in conformity with written information furnished to the Company or the Parent by any Underwriter through Deutsche Bank Securities Inc. expressly for use therein.

 

(b)           Each Underwriter will indemnify and hold harmless the Company and each Guarantor against any losses, claims, damages or liabilities to which the Company or any Guarantor may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, the Basic Prospectus, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any amendment or supplement thereto, or any Issuer Free Writing
Prospectus, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, the Basic Prospectus, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus or any such amendment or supplement thereto, or any Issuer Free Writing Prospectus, in reliance upon and in conformity with written information furnished to the Company or the Parent by such Underwriter through Deutsche Bank Securities Inc. expressly for use therein; and will reimburse the Company or any Guarantor for any legal or other expenses reasonably incurred by the Company or any Guarantor in connection with
investigating or defending any such action or claim as such expenses are incurred.

 

(c)           Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified

 

  

21

  

party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection.  In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel
satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation.  No indemnifying party shall, without the written consent of the indemnified party, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the
indemnified party is an actual or potential party to such action or claim) unless such settlement, compromise or judgment (i) includes an unconditional release of the indemnified party from all liability arising out of such action or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any indemnified party.

 

(d)           If the indemnification provided for in this Section 9 is unavailable to or insufficient to hold harmless an indemnified party under subsection (a) or (b) above in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Guarantors on the one hand and the
Underwriters on the other from the offering of the Securities.  If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the indemnified party failed to give the notice required under subsection (c) above, then each indemnifying party shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company and the Guarantors on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations.  The relative benefits received by the Company and the Guarantors on the one hand and the Underwriters on the other
shall be deemed

 

  

22

  

to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus.  The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or any Guarantor on the one hand or the Underwriters on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.  The Company, the Guarantors and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d).  The amount paid or payable by an indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim.  Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to
contribute any amount in excess of the amount by which the total price at which the Securities underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.  No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.  The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint.

 

(e)           The obligations of the Company and the Guarantors under this Section 9 shall be in addition to any liability which the Company or any Guarantor may otherwise have and shall extend, upon the same terms and conditions, to each person, if any, who controls any Underwriter within the meaning of the Act and each broker-dealer affiliate of any Underwriter; and the obligations of the Underwriters under this Section 9 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each officer and director of the Company or any
Guarantor and to each person, if any, who controls the Company or any Guarantor within the meaning of the Act.

 

10.         (a)  If any Underwriter shall default in its obligation to purchase the Securities which it has agreed to purchase hereunder, you may in your discretion arrange for you or another party or other parties to purchase such Securities on

 

  

23

  

the terms contained herein.  If within thirty-six hours after such default by any Underwriter you do not arrange for the purchase of such Securities, then the Parent, on behalf the Company and the Guarantors, shall be entitled to a further period of thirty-six hours within which to procure another party or other parties satisfactory to you to purchase such Securities on such terms.  In the event that, within the respective prescribed periods, you notify the Parent that you have so arranged for the purchase of such Securities, or the Parent notifies you that it has so arranged for the purchase of such Securities, you or the Parent shall have the right to postpone the Time of Delivery for a period of
not more than seven days, in order to effect whatever changes may thereby be made necessary in the Registration Statement or the Prospectus, or in any other documents or arrangements, and the Company and the Guarantors agrees to file promptly any amendments or supplements to the Registration Statement or the Prospectus which in your opinion may thereby be made necessary.  The term “Underwriter” as used in this Agreement shall include any person substituted under this Section with like effect as if such person had originally been a party to this Agreement with respect to such Securities.

 

(b)           If, after giving effect to any arrangements for the purchase of the Securities of a defaulting Underwriter or Underwriters by you and the Parent as provided in subsection (a) above, the aggregate principal amount of such Securities which remains unpurchased does not exceed one-tenth of the aggregate principal amount of all the Securities, then the Parent shall have the right to require each non-defaulting Underwriter to purchase the principal amount of Securities which such Underwriter agreed to purchase hereunder and, in addition, to require each non-defaulting Underwriter to purchase its pro rata
share (based on the principal amount of Securities which such Underwriter agreed to purchase hereunder) of the Securities of such defaulting Underwriter or Underwriters for which such arrangements have not been made; but nothing herein shall relieve a defaulting Underwriter from liability for its default.

 

(c)           If, after giving effect to any arrangements for the purchase of the Securities of a defaulting Underwriter or Underwriters by you and the Parent as provided in subsection (a) above, the aggregate principal amount of Securities which remains unpurchased exceeds one-tenth of the aggregate principal amount of all the Securities, or if the Parent shall not exercise the right described in subsection (b) above to require non-defaulting Underwriters to purchase Securities of a defaulting Underwriter or Underwriters, then this Agreement shall thereupon terminate, without liability on the part of any
non-defaulting Underwriter or the Parent, except for the expenses to be borne by the Company and the Guarantors and the Underwriters as provided in Section 7 hereof and the indemnity and contribution agreements in Section 9 hereof; but nothing herein shall relieve a defaulting Underwriter from liability for its default.

 

  

24

  

11.           The respective indemnities, agreements, representations, warranties and other statements of the Company, the Guarantors and the several Underwriters, as set forth in this Agreement or made by or on behalf of them, respectively, pursuant to this Agreement, shall remain in full force and effect, regardless of any investigation (or any statement as to the results thereof) made by or on behalf of any Underwriter or any controlling person of any Underwriter, or the Company or any Guarantor, or any officer or director or controlling person of the Company or any Guarantor, and shall survive delivery of and payment for the Securities.

 

12.           If this Agreement shall be terminated pursuant to Section 10 hereof, neither the Company nor any Guarantor shall then be under any liability to any Underwriter except as provided in Sections 7 and 9 hereof; but, if for any other reason, the Securities are not delivered by or on behalf of the Company as provided herein, the Company and the Guarantors will reimburse the Underwriters through you for all out of pocket expenses approved in writing by you, including fees and disbursements of counsel, reasonably incurred by the Underwriters in making preparations for the purchase, sale and delivery of the
Securities, but neither the Company nor any Guarantor shall then be under no further liability to any Underwriter except as provided in Sections 7 and 9 hereof.

 

13.           In all dealings hereunder, Deutsche Bank Securities Inc. shall act on behalf of each of the Underwriters, and the parties hereto shall be entitled to act and rely upon any statement, request, notice or agreement on behalf of any Underwriter made or given by Deutsche Bank Securities Inc.

 

All statements, requests, notices and agreements hereunder shall be in writing, and if to the Underwriters shall be delivered or sent by mail, telex or facsimile transmission to you as the Representative at Deutsche Bank Securities Inc., 60 Wall Street, New York, New York 10005, Attention: Leveraged Debt Capital; and if to the Company or any Guarantor shall be delivered or sent by mail, telex or facsimile transmission to c/o NII Holdings, Inc., 1875 Explorer Street, 10th Floor, Reston, Virginia 20190, Attention: General Counsel; provided, however, that any notice to an Underwriter pursuant to Section 9(c) hereof shall be delivered or sent by mail, telex or facsimile transmission to such Underwriter at its address set forth
in its Underwriters' Questionnaire, or telex constituting such Questionnaire, which address will be supplied to the Company or the Parent by you upon request.  Any such statements, requests, notices or agreements shall take effect upon receipt thereof.

 

In accordance with the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), the Underwriters are required to obtain, verify and record information that identifies their respective clients, including the Company or any Guarantor, which information may include the name and address of their respective clients, as well as other information that will allow  the underwriters to properly identify their respective clients.

 

  

25

  

14.           This Agreement shall be binding upon, and inure solely to the benefit of, the Underwriters, the Company, the Guarantors and, to the extent provided in Sections 9 and 11 hereof, the officers and directors of the Company or any Guarantor and each person who controls the Company or any Guarantor or any Underwriter, and their respective heirs, executors, administrators, successors and assigns, and no other person shall acquire or have any right under or by virtue of this Agreement.  No purchaser of any of the Securities from any Underwriter shall be deemed a successor or assign by reason merely of such purchase.

 

15.           Time shall be of the essence of this Agreement.  As used herein, the term “business day” shall mean any day when the Commission's office in Washington, D.C. is open for business.

 

16.           Each of the Guarantors and the Company acknowledges and agrees that (i) the purchase and sale of the Securities pursuant to this Agreement is an arm's-length commercial transaction between the Company and the Guarantors, on the one hand, and the several Underwriters, on the other, (ii) in connection therewith and with the process leading to such transaction each Underwriter is acting solely as a principal and not the agent or fiduciary of the Company or any Guarantor, (iii) no Underwriter has assumed an advisory or fiduciary responsibility in favor of the Company or any Guarantor
with respect to the offering contemplated hereby or the process leading thereto (irrespective of whether such Underwriter has advised or is currently advising the Company or any Guarantor on other matters) or any other obligation to the Company or any Guarantor except the obligations expressly set forth in this Agreement and (iv) the Company and the Guarantors have consulted their own legal and financial advisors to the extent they deemed appropriate.  The Company and the Guarantors agree that they will not claim that the Underwriters, or any of them, has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to the Company or any Guarantor, in connection with such transaction or the process leading thereto.

 

17.           This Agreement supersedes all prior agreements and understandings (whether written or oral) between the Company, the Guarantors and the Underwriters, or any of them, with respect to the subject matter hereof.

 

18.           THIS AGREEMENT AND ANY MATTERS RELATED TO THIS TRANSACTION SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAWS OF THE STATE OF NEW YORK.  Each of the Guarantors and the Company agrees that any suit or proceeding arising in respect of this agreement or our engagement will be tried exclusively in the U.S. District Court
for the Southern District of New York or, if that court does not have subject matter jurisdiction, in any state court located in The City and County of New York and each of the Guarantors and the Company agrees to submit to the jurisdiction of, and to venue in, such courts.

 

  

26

  

 

19.           The Company, each of the Guarantors and each of the Underwriters hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

 

20.           This Agreement may be executed by any one or more of the parties hereto in any number of counterparts, each of which shall be deemed to be an original, but all such respective counterparts shall together constitute one and the same instrument.

 

21.           Notwithstanding anything herein to the contrary, the Company and any Guarantor is authorized to disclose to any persons the U.S. federal and state income tax treatment and tax structure of the potential transaction and all materials of any kind (including tax opinions and other tax analyses) provided to the Company or any Guarantor relating to that treatment and structure, without the Underwriters, imposing any limitation of any kind.  However, any information relating to the tax treatment and tax structure shall remain confidential (and the foregoing sentence shall not apply) to the extent
necessary to enable any person to comply with securities laws.  For this purpose, “tax structure” is limited to any facts that may be relevant to that treatment.

 

 

 

  

27

  

If the foregoing is in accordance with your understanding, please sign and return to us counterparts hereof, and upon the acceptance hereof by you, on behalf of each of the Underwriters, this letter and such acceptance hereof shall constitute a binding agreement between each of the Underwriters, the Company and the Guarantors.  It is understood that your acceptance of this letter on behalf of each of the Underwriters is pursuant to the authority set forth in a form of Agreement among Underwriters, the form of which shall be submitted to the Company and the Guarantors for examination upon request, but without warranty on your part as to the authority of the signers thereof.

 

	  	
Very truly yours,

	  	
NII Capital Corp.

	  	  	  	  
	  	  	  	  
	  	
By:

	
/s/ Gary D. Begeman

	  
	  	  	
Name:  Gary D. Begeman

	  
	  	  	
Title:  VP and Secretary

	  
	  	  	  	  
	  	  	  	  
	  	
NII Holdings, Inc.

	  	  	  	  
	  	
By:

	
/s/ Gary D. Begeman

	  
	  	  	
Name:  Gary D. Begeman

	  
	  	  	
Title:  Executive VP,

	  
	  	  	
General Counsel

	  
	  	  	
and Secretary

	  
	  	  	  	  
	  	  	  	  
	  	
Nextel International (Services), Ltd.

	  	  	  	  
	  	
By:

	
/s/ Gary D. Begeman

	  
	  	  	
Name:  Gary D. Begeman

	  
	  	  	
Title:  VP and Secretary

	  
	  	  	  	  
	  	  	  	  
	  	
NII Funding Corp.

	  	  	  	  
	  	
By:

	
/s/ Gary D. Begeman

	  
	  	  	
Name:  Gary D. Begeman

	  
	  	  	
Title:  VP and Secretary

	  

Signature Page to Underwriting Agreement (Notes)

  

  

  

 

	  	
NII Aviation, Inc.

	  	  	  	  
	  	
By:

	
/s/ Gary D. Begeman

	  
	  	  	
Name:  Gary D. Begeman

	  
	  	  	
Title:  VP and Secretary

	  
	  	  	  	  
	  	
NII Global Holdings, Inc.

	  
	  	  	  	  
	  	
By:

	
/s/ Gary D. Begeman

	  
	  	  	
Name:  Gary D. Begeman

	  
	  	  	
Title:  VP and Secretary

	  

 

Signature Page to Underwriting Agreement (Notes)

  

  

  

 

	
Accepted as of the date hereof:

	
Deutsche Bank Securities Inc.

	  	  	  
	
By:

	
/s/ Scott Sartorius

	  
	  	
Name:  Scott Sartorius

	  
	  	
Title:  Managing Director

	  
	  	  	  
	  	  	  
	
By:

	
/s/ Alexandra Barth

	  
	  	
Name:  Alexandra Barth

	  
	  	
Title:  Managing Director

	  

On behalf of each of the Underwriters

 

Signature Page to Underwriting Agreement (Notes)

  

  

  

 

SCHEDULE I

 

	  	  
	  	
Principal Amount of Securities to be Purchased

	
Underwriter

	  
	
Deutsche Bank Securities Inc.

	
$273,000,000

	
Credit Suisse Securities (USA) LLC

	
$84,000,000

	
Goldman, Sachs & Co.

	
$84,000,000

	
J.P. Morgan Securities LLC

	
$84,000,000

	
Citigroup Global Markets Inc.

	
$70,000,000

	
HSBC Securities (USA) Inc.

	
$70,000,000

	
Morgan Stanley & Co. LLC

	
$35,000,000

	
Total

	
$700,000,000

 

 

 

 

S-I-1

  

  

  

SCHEDULE II

Subsidiaries

Nextel International (Services) Ltd.

NII Funding Corp.

NII Aviation, Inc.

NII Capital Corp.

NII Global Holdings, Inc.

NII International Holdings S.à r.l.

NII International Telecom S.à r.l.

NIHD Telecom Holdings B.V.

NII 4G, S. de R.L. de C.V.

Nextel International (Uruguay), LLC

Comunicaciones Nextel de México, S.A. de C.V.

Prestadora de Servicios de Radiocomunicación, S. de R.L. de C.V.

Servicios NII, S. de R.L. de C.V.

NII Telecom, S. de R.L. de C.V.

Teletransportes Integrales, S. de R.L. de C.V.

Servicios de Radiocomunicación Móvil de México, S.A. de C.V.

Radiophone, S.A. de C.V.

Fonotransportes Nacionales, S.A. de C.V.

Fonotransportes, S.A. de C.V.

Inversiones Nextel de México, S.A. de C.V.

Delta Comunicaciones Digitales, S. de R.L. de C.V.

Operadora de Comunicaciones, S.A. de C.V.

NII Digital, S. de R.L. de C.V.

NII Digital XXI, S. de R.L. de C.V.

Fundación Nextel, A.C.

Nextel Uruguay S.A.

NII International Mobile S.à r.l.

McCaw International (Brazil), LLC

Airfone Holdings, LLC

Nextel Telecomunicações S.A.

Nextel Telecomunicações Ltda.

Nextel Telecomunicações de Longa Distancia Ltda.

Nextel Telecomunicações SMP Ltda.

Nextel Serviços de Telecomunicações Ltda.

RMD do Brasil S.A.

Rádio Móvel Digital S.A.

Telcom Telecomunicações do Brasil Ltda.

Sunbird Participações Ltda.

Sunbird Telecomunicações Ltda.

NII Mercosur Móviles, S.L.

NII Mercosur Telecom, S.L.

Nextel Communications Argentina S.R.L.

Nextel Chile S.A.

S-II-1

  

  

  

Nextel S.A. (formerly, Centennial Cayman Corp. Chile S.A.)

Multikom S.A.

Conect S.A.

Nextel del Perú S.A.

NII Mercosur, LLC

NII Holdings (Cayman), Ltd.

Nextel International (Argentina), Ltd.

Centennial Cayman Corp.

Nextel International (Peru) LLC

Nextel International (Indonesia) LLC

 

 

S-II-2

  

  

  

SCHEDULE III

Guarantors

NII Holdings, Inc.

Nextel International (Services), Ltd.

NII Funding Corp.

NII Aviation, Inc.

NII Global Holdings, Inc.

S-III-1

  

  

  

 

SCHEDULE IV

 

(a)           Issuer Free Writing Prospectuses not included in the Pricing Disclosure Package:

 

Netroadshow, dated December 5, 2011, for the Securities

 

(b)           Additional Documents Incorporated by Reference:

 

None

S-IV-1

  

  

  

ANNEX I

 

FORM OF OPINION OF WILLIAMS MULLEN, COUNSEL FOR THE COMPANY, PURSUANT TO SECTION 8(C)

 

A.      The Company has been duly incorporated, is validly existing as a corporation in good standing under the laws of the jurisdiction of its incorporation, has the corporate power and authority to own its property and to conduct its business as described in the Pricing Disclosure Package and the Prospectus and is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect.

 

B.      Each Guarantor has been duly incorporated and is validly existing as a corporation in good standing under the laws of the jurisdiction of its incorporation or organization, has the corporate power and authority to own its property and to conduct its business as described in the Pricing Disclosure Package and the Prospectus and is duly qualified to transact business and, to the extent applicable, is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect.

 

C.      This Agreement has been duly authorized, executed and delivered by the Company and the Guarantors.

 

D.      The authorized capital stock of the Parent conforms as to legal matters in all material respects to the description thereof contained in the Pricing Disclosure Package and the Prospectus.

 

E.      The shares of common stock, par value $0.001 per share, of the Parent outstanding prior to the issuance of the Securities have been duly authorized and are validly issued, fully paid and non-assessable under the Delaware General Corporation Law.

 

F.      All of the issued and outstanding shares of capital stock of the Company and each Guarantor (other than the Parent) have been duly and validly authorized and issued, are fully paid and non-assessable, are owned directly or indirectly by the Parent and, to counsel’s knowledge and except as described in the Pricing Disclosure Package and the Prospectus, are free and clear of all liens and encumbrances.

 

G.      The Notes have been duly authorized by the Company and, when executed by the Company and authenticated by the Trustee in accordance with the provisions of the Indenture and delivered to and paid for by the Underwriters in accordance with the terms of this Agreement, will be valid and binding obligations of the Company,

 

A-I-1

  

  

  

enforceable against the Company in accordance with their terms, except as the enforceability thereof may be limited by (A) bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws affecting the enforcement of creditors’ rights generally, (B) general principles of equity (regardless of whether enforceability is considered in an action at law or a suit in equity), including the availability of equitable remedies, and (C) procedural requirements of law applicable to the exercise of creditors’ remedies.

 

H.      The Guarantee by each Guarantor set forth in the Indenture has been duly authorized by such Guarantor and, when the Indenture has been executed and delivered by the parties thereto as of the Time of Delivery and the Securities have been delivered to and paid for by the Underwriters in accordance with the terms of this Agreement, will be a valid and binding obligation of such Guarantor, enforceable against each Guarantor in accordance with its terms, except as the enforceability thereof may be limited by (A) bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws affecting the enforcement of creditors’ rights generally, (B) general principles of
equity (regardless of whether enforceability is considered in an action at law or a suit in equity), including the availability of equitable remedies, and (C) procedural requirements of law applicable to the exercise of creditors’ remedies.

 

I.      The Indenture has been duly authorized, executed and delivered by, and is a valid and binding agreement of, the Company and each Guarantor, enforceable against the Company and each Guarantor in accordance with its terms, except as the enforceability thereof may be limited by (A) bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws affecting the enforcement of creditors’ rights generally, (B) general principles of equity (regardless of whether enforceability is considered in an action at law or a suit in equity), including the availability of equitable remedies and (C) procedural requirements of law applicable to the exercise of
creditors’ remedies.  The Indenture has been duly qualified under the Trust Indenture Act.

 

J.      The execution and delivery by the Company and each Guarantor of, and the performance by the Company and each Guarantor of its obligations under, this Agreement, the Indenture and the Securities will not contravene (A) any provision of law applicable to the Company or any Guarantor, (B) the Certificate of Incorporation or the Bylaws of the Company or any of the Guarantors, as applicable, (C) the terms of any agreement or other instrument to be listed on a schedule hereto, or (D) to counsel’s knowledge, any judgment, order or decree of any governmental body, agency or court having jurisdiction over the Company or any Guarantor, except, with respect to clauses (A) and (C), to
the extent that any such contravention would not have a Material Adverse Effect.

 

K.      No consent, approval, authorization or order of, or qualification with, any governmental body or agency is required for the performance by the Company or any Guarantor of its obligations under this Agreement, the Indenture or the Securities, except such as have been obtained or as may be required by the securities or Blue Sky laws of the various states in connection with the offer and sale of the Securities (as to

 

A-I-2

  

  

  

which such counsel expresses no opinion) and as to which the failure to so obtain would not materially adversely affect the ability of the Company or any Guarantor to perform its obligations under this Agreement, the Indenture or the Securities.

 

L.      None of the Company or any Guarantor is, and after giving effect to the offering and sale of the Securities and the consummation of the transactions and application of the proceeds thereof as described in the Pricing Disclosure Package and the Prospectus will be, required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.

 

M.        The statements relating to legal matters, documents or proceedings included in the Pricing Disclosure Package and the Prospectus under the caption “Description of Notes” fairly summarize, in all material respects, such matters, documents or proceedings.

 

N.      The statements in the Pricing Disclosure Package and the Prospectus under the caption “Material United States Federal Income Tax Considerations,” insofar as such statements constitute a summary of the United States federal tax laws referred to therein, are accurate and fairly summarize in all material respects the United States federal tax laws referred to therein.

 

O.      The documents incorporated by reference in the Registration Statement, the Pricing Disclosure Package and the Prospectus or any further amendment or supplement thereto made by the Parent prior to the Time of Delivery (except for the financial statements, notes thereto and schedules and other financial and accounting information and data derived therefrom included or incorporated by reference therein or omitted therefrom and the Trustee’s statement of eligibility on Form T-1 (collectively, the “Excluded Information”), as to which such counsel expresses no opinion), when they were filed with the Commission complied as to form in all material respects with the
requirements of the Exchange Act and the rules and regulations of the Commission thereunder.

 

P.      The Registration Statement, the Prospectus and any further amendments and supplements thereto, as applicable, made by the Company or any Guarantor prior to the Time of Delivery (other than the Excluded Information, as to which such counsel expresses no opinion) comply as to form in all material respects with the requirements of the Act and the Trust Indenture Act and the rules and regulations thereunder.

 

Q.      To such counsel’s knowledge, there are no legal or governmental proceedings pending or threatened to which the Parent, the Company or any of the Subsidiaries is or may be a party or to which any of the properties of the Parent, the Company or any of the Subsidiaries is or may be subject that are required to be described in the Pricing Disclosure Package and the Prospectus and are not so described or any statutes, regulations, contracts or other documents that are required to be described in the Pricing Disclosure Package and the Prospectus that are not described as required.

 

A-I-3

  

  

  

 

In addition, such counsel shall state that nothing came to the attention of such counsel that causes such counsel to believe that the Registration Statement or any further amendment thereto made prior to the Time of Delivery (except for the Excluded Information, as to which such counsel need not express any opinion), when such part or amendment became effective, contained an untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading; and the Pricing Disclosure Package (except for the Excluded Information, as to which such counsel need not express any opinion), as of the Applicable Time, or the Preliminary Prospectus
forming part of the Registration Statement at the time it became effective and the Prospectus (except for the Excluded Information, as to which such counsel need not express any opinion), each as of its date or as of the Time of Delivery, contained or contains an untrue statement of a material fact or omitted or omits to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that such counsel need not assume any responsibility for the accuracy, completeness or fairness of the statements contained in the Disclosure Documents (except as specified in its opinion dated the date thereof with respect to the statements under the captions “Material United States Federal Income Tax Considerations” and
“Description of Notes”).

 

With respect to the immediately preceding paragraph, Williams Mullen may state that their beliefs are based upon their participation in the preparation of the Registration Statement, the Pricing Disclosure Package and the Prospectus and any amendments or supplements thereto and review and discussion of the contents thereof, but are without independent check or verification, except as specified.

 

A-I-4

  

  

  

ANNEX II(a)

 

 

FORM OF OPINION OF ARGENTINA COUNSEL FOR THE COMPANY,

 

 

PURSUANT TO SECTION 8(D)

 

1.     Nextel Communications Argentina S.R.L. (“Nextel Argentina”) has been duly incorporated, is validly existing as a limited liability company in good standing under the laws of the Republic of Argentina, has the corporate power and authority to own its property and to conduct its business as described in the Pricing Disclosure Package, the Prospectus and Form 10-K and is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good
standing would not have a material adverse effect on Nextel Argentina;

 

2.     Nextel Argentina (i) has all necessary licenses, consents, authorizations, approvals, orders, certificates and permits of and from, and has made all declarations and filings with, all Argentine governmental, administrative or regulatory authorities, all self-regulatory organizations and all courts and other tribunals, to own, lease, license and use its properties and assets and to conduct its business in the manner described in or contemplated by the Pricing Disclosure Package, the Prospectus and Form 10-K, including providing digital enhanced specialized mobile radio services, except to the extent that the failure to obtain such consents, authorizations, approvals, orders, certificates
and permits or make such declarations and filings would not have a material adverse effect on Nextel Argentina and (ii) has not received any notice of proceedings relating to the violation, revocation or modification of any such license, consent, authorization, approval, order, certificate or permit which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would reasonably be expected to result in a material adverse change in the condition, financial or otherwise, or in the earnings, business or operations of Nextel Argentina, except as described in the Pricing Disclosure Package, the Prospectus and Form 10-K; for the avoidance of any doubt it is clarified that the term “embargoes” used in the Pricing Disclosure Package and the Prospectus under the caption “Risk Factors – Risk Factors Relating to Our Company – We
operate exclusively in foreign markets, and our assets, customers and cash flows are concentrated in Latin America, which presents risks to our operating plans. – Our operating companies are subject to local laws and government regulations in the countries in which they operate, and we are subject to the U.S. Foreign Corrupt Practices Act, which could limit our growth and strategic plans and negatively impact our financial results,” includes, exclusively in connection with Argentina, orders from local governments and/or the judiciary seeking for cells to be modified or removed from its current locations;

 

3.     The statements in (i) the Form 10-K under the captions “Business – Operating Companies – Argentina – Regulatory and Legal Overview,” “Business – Operating Companies – Argentina – Foreign Currency Controls, Dividends and Tax Regulation,” and “Management’s Discussion and Analysis of Financial Condition and

 

A-II(a)-1

  

  

  

Results of Operations – Executive Overview – Argentine Contingencies,” and (ii) the Pricing Disclosure Package and the Prospectus under the caption “Risk Factors – Risk Factors Relating to Our Company – We operate exclusively in foreign markets, and our assets, customers and cash flows are concentrated in Latin America, which presents risks to our operating plans – Our operating companies are subject to local laws and government regulations in the countries in which they operate, and we are subject to the U.S. Foreign Corrupt Practices Act, which could limit our growth and strategic plans and negatively impact our financial results,” in each case, insofar as such
statements constitute summaries of the Argentine legal matters, documents or proceedings related to Nextel Argentina, are accurate in all material respects and fairly summarize all matters referred to therein, and there are no material omissions under such captions with respect to the description of statutes, rules or regulations that would make the statements therein misleading; and

 

4.     There are no restrictions (legal, contractual or otherwise) on the ability of Nextel Argentina, other than those described in the Pricing Disclosure Package, the Prospectus and Form 10-K, to: (i) declare and pay any dividends or make any payment to its stockholders; and (ii) to transfer any property to its stockholders; and such restrictions as would not have a material adverse effect on the prospects, condition, financial or otherwise, or in the earnings, business or operations of the Company; and such descriptions, if any, fairly summarize such restrictions.

 

A-II(a)-2

  

  

  

ANNEX II(b)

 

 

FORM OF OPINION OF BRAZIL COUNSEL FOR THE COMPANY,

 

PURSUANT TO SECTION 8(D)

(A)           Nextel Telecomunicações Ltda. (“Nextel Ltda.”) is a limited liability company (sociedade limitada) duly formed and existing under the laws of the Federative Republic of Brazil (“Brazil”).  Under the terms of Nextel Ltda.’s articles of association and other corporate documents, Nextel Ltda. has all corporate power and authority required to own, operate and lease its properties and assets and to carry on its business as described in NII’s
2010 Form 10-K, in the Pricing Disclosure Package and in the Prospectus, except where such failure to have corporate authority would not have a material adverse effect on the Brazilian Subsidiaries, taken as a whole;

 

(B)           Nextel Telecomunicações de Longa Distância Ltda., a subsidiary of Nextel Ltda. (“Nextel LD”) is a limited liability company (sociedade limitada) duly formed and existing under the laws of Brazil.  Under the terms of Nextel LD’s articles of association and other corporate documents, Nextel LD has all corporate power and authority required to own, operate and lease its properties and assets and to carry on its business as described in NII’s 2010 Form 10-K, in the Pricing Disclosure Package and in
the Prospectus, except where such failure to have corporate authority would not have a material adverse effect on Nextel LD;

 

(C)           Nextel Telecomunicações SMP Ltda. (“Nextel SMP”) is a limited liability company (sociedade limitada) duly formed and existing under the laws of Brazil.  Under the terms of Nextel SMP’s articles of association and other corporate documents, Nextel SMP has all corporate power and authority required to own, operate and lease its properties and assets and to carry on its business as described in NII’s 2010 Form 10-K, in the Pricing Disclosure Package and in the Prospectus, except where such failure to
have corporate authority would not have a material adverse effect on Nextel SMP;

 

(D)           Nextel Telecomunicações S.A. (“Nextel S.A.”) is a corporation (sociedade por ações) duly formed and existing under the laws of Brazil.  Under the terms of Nextel S.A.’s bylaws and other corporate documents, Nextel S.A. has all corporate power and authority required to own, operate and lease its properties and assets and to carry on its business as described in NII’s 2010 Form 10-K, in the Pricing Disclosure Package and in the Prospectus, except where such failure to have corporate authority
would not have a material adverse effect on Nextel S.A.;

 

(E)           Nextel Serviços de Telecomunicações Ltda. (“Nextel Serviços”) is a limited liability company (sociedade limitada) duly formed and existing under the laws of Brazil.  Under the terms of Nextel Serviços’ articles of association and other corporate documents, Nextel Serviços has all corporate power and authority required to own, operate and lease its properties and assets and to carry on its business as described in NII’s 2010 Form 10-K, in the Pricing Disclosure Package and in the Prospectus, except where such failure to have corporate
authority would not have a material adverse effect on Nextel Serviços;

 

A-II(b)-1

  

  

  

(F)           RMD do Brasil S.A. (“RMD S.A.”) is a corporation (sociedade por ações) duly formed and existing under the laws of Brazil.  Under the terms of RMD S.A.’s bylaws and other corporate documents, RMD S.A. has all corporate power and authority required to own, operate and lease its properties and assets and to carry on its business as described in NII’s 2010 Form 10-K, in the Pricing Disclosure Package and in the Prospectus, except where such failure to have corporate authority would not have a material
adverse effect on RMD S.A.;

 

(G)           Rádio Móvel Digital S.A. (“Rádio Móvel S.A.”) is a corporation (sociedade por ações) duly formed and existing under the laws of Brazil.  Under the terms of Rádio Móvel S.A.’s bylaws and other corporate documents, Rádio Móvel S.A. has all corporate power and authority required to own, operate and lease its properties and assets and to carry on its business as described in NII’s 2010 Form 10-K, in the Pricing Disclosure Package and in the Prospectus, except where
such failure to have corporate authority would not have a material adverse effect on Rádio Móvel S.A.;

 

(H)           Telcom – Telecomunicações do Brasil Ltda. (“Telcom”) is a limited liability company (sociedade limitada) duly formed and existing under the laws of Brazil.  Under the terms of Telcom’s articles of association and other corporate documents, Telcom has all corporate power and authority required to own, operate and lease its properties and assets and to carry on its business as described in NII’s 2010 Form 10-K, in the Pricing Disclosure Package and in the Prospectus, except where such failure to
have corporate authority would not have a material adverse effect on Telcom;

 

(I)           Sunbird Telecomunicações Ltda. (“Sunbird Ltda.”) is a limited liability company (sociedade limitada) duly formed and existing under the laws of Brazil.  Under the terms of Sunbird Ltda.’s articles of association and other corporate documents, Sunbird Ltda. has all corporate power and authority required to own, operate and lease its properties and assets and to carry on its business as described in NII’s 2010 Form 10-K, in the Pricing Disclosure Package and in the Prospectus, except where such failure
to have corporate authority would not have a material adverse effect on Sunbird Ltda.;

 

(J)           Sunbird Participações Ltda. (“Sunbird Par”, and jointly with Nextel Ltda., Nextel S.A., Nextel LD, Nextel SMP, Nextel Serviços, RMD S.A., Rádio Móvel S.A., Telecom and Sunbird Ltda. the “Brazilian Subsidiaries”) is a limited liability company (sociedade limitada) duly formed and existing under the laws of Brazil.  Under the terms of Sunbird Par’s articles of association and
other corporate documents, Sunbird Par has all corporate power and authority required to own, operate and lease its properties and assets and to carry on its business as described in NII’s 2010 Form 10-K, in the Pricing Disclosure Package and in the Prospectus, except where such failure to have corporate authority would not have a material adverse effect on Sunbird Par;

 

(K)           Except (a) for certain local state and municipal permits related to site leases for the installation of towers and (b) for certain licenses related to Telcom and Sunbird Ltda., which are currently under process of renewal before the Brazilian National Telecommunications Agency (ANATEL), which permits and licenses are not, individually or in the aggregate, material, each of the Brazilian Subsidiaries: (i) has all

 

A-II(b)-2

  

  

  

necessary licenses, consents, authorizations, approvals, orders, certificates and permits of and from, and has made all declarations and filings with, all Brazilian governmental, administrative or regulatory authorities, all self-regulatory organizations and all courts and other tribunals, to conduct its business in the manner described in or contemplated by NII’s 2010 Form 10-K, in the Pricing Disclosure Package and the Prospectus, including providing digital enhanced specialized mobile radio services, except to the extent that the failure to obtain such consents, authorizations, approvals, orders, certificates and permits or make such declarations and filings would not have a material adverse effect on the
Brazilian Subsidiaries, taken as a whole; and (ii) has not received any notice of proceedings relating to the violation, revocation or modification of any such license, consent, authorization, approval, order, certificate or permit which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would reasonably be expected to result in a material adverse change in the condition, financial or otherwise, or in the earnings, business or operations of the Brazilian Subsidiaries, taken as a whole, except as described in NII’s 2010 Form 10-K, in the Pricing Disclosure Package and in the Prospectus; and

 

(L)           The statements contained in the Pricing Disclosure Package and in the Prospectus under the captions “Risk Factors – Risk Factors Relating to Our Company - We operate exclusively in foreign markets, and our assets, customers and cash flows are concentrated in Latin America, which presents risks to our operating plans – We are subject to foreign taxes in the countries in which we operate, which may reduce amounts we receive from our operating companies or may increase our tax costs,” insofar as it relates to certain tax assessment notices received by Nextel Ltda., “Risk Factors – Risk Factors Relating to Our Company –
Our current and future debt may limit our flexibility and increase our risk of default,” “Risk Factors – Risk Factors Relating to Our Company – We operate exclusively in foreign markets, and our assets, customers and cash flows are concentrated in Latin America, which presents risks to our operating plans – Our operating companies are subject to local laws and government regulations in the countries in which they operate, and we are subject to the U.S. Foreign Corrupt Practices Act, which could limit our growth and strategic plans and negatively impact our financial results,” “Risk Factors – Risk Factors Relating to Our Company – The costs we incur to connect our operating companies’ networks with those of other carriers are subject to local laws in the countries in which they operate and may increase, which could adversely
impact our financial results,”, “Risk Factors – Risk Factors Relating to Our Company – If our licenses to provide mobile services are not renewed or are modified or revoked, our business may be restricted” and the statements contained in NII’s 2010 Form 10-K under the caption “Business – L. Operating Companies – 1. Brazil,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Executive Overview – Brazilian Contingencies,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Year Ended December 31, 2010 vs. Year Ended December 31, 2009 – Segment Results – Nextel Brazil,” in each case insofar as certain parts of such statements constitute
summaries of Brazilian legal matters, legal documents or legal proceedings referred to therein, are accurate in all material respects and fairly summarize all matters referred to therein, and there are no material omissions

 

A-II(b)-3

  

  

  

under such captions with respect to the description of statutes, rules or regulations that would make the statements therein misleading.

 

(M)           There are no legal restrictions on the ability of Nextel S.A. (the Brazilian subsidiary through which any dividend is expected to flow), Nextel Ltda., Nextel LD, Nextel SMP, Nextel Serviços, RMD S.A., Rádio Móvel S.A., Telcom, Sunbird Ltda., or Sunbird Par, to declare and pay any dividends or make any payment or transfer of property or assets to its stockholders other than those described in the Pricing Disclosure Package, in the Preliminary Prospectus and in NII’s 2010 Form 10-K and such restrictions would not have a material adverse effect on the prospects, condition, financial or otherwise, or in the earnings, business or
operations of the Brazilian Subsidiaries, taken as a whole; and such descriptions, if any, fairly summarize such restrictions.

 

A-II(b)-4

  

  

  

ANNEX II(c)

 

 

FORM OF OPINION OF CHILE COUNSEL FOR THE COMPANY,

 

 

PURSUANT TO SECTION 8(D)

 

1.           Nextel S.A. (formerly Centennial Cayman Corp Chile S.A.) and Multikom S.A. (the “Operating Companies”) have been duly incorporated, are validly existing as corporations and are in good standing under the laws of Chile, have the corporate power and authority to own their property and to conduct their business as described in the Pricing Disclosure Package, the Prospectus and the Form 10-K and are duly qualified to transact business and to own or lease property in Chile, except to the extent that the failure to be so qualified or be in good standing would not have a material adverse
effect on the Operating Companies.

 

2.           The Operating Companies have no subsidiaries.

 

3.           Each of the Operating Companies has all necessary licenses, consents, authorizations, approvals, orders, certificates and permits of and from, and has made all declarations and filings with, all Chilean governmental, administrative or regulatory authorities to own, lease, license and use its properties and assets and to conduct its business in the manner described in or incorporated by reference in the Pricing Disclosure Package and the Prospectus, except: (i) as otherwise described in or incorporated by reference in the Pricing Disclosure Package and the Prospectus; and/or (ii) to the extent that the failure to obtain such licenses, consents,
authorizations, approvals, orders, certificates and permits or make such declarations and filings would not have a material adverse effect on the Operating Companies, taken as a whole.

 

4.           Except as described in or incorporated by reference in the Pricing Disclosure Package and the Prospectus, to our knowledge, none of the Operating Companies has received any notice of proceedings relating to the violation, revocation or modification of any such license, consent, authorization, approval, order, certificate or permit which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would reasonably be expected to result in a material adverse change in the condition, financial or otherwise, or in the earnings, business or operations of the Operating Companies, taken as a whole.

 

5.           The statements contained in the Pricing Disclosure Package and the Prospectus under the captions “Risk Factors – Risk Factors Relating to our Company.  We operate exclusively in foreign markets, and our assets, customers and cash flows are concentrated in Latin America, which presents risks to our operating plans” (only as they relate to the Operating Companies) and the statements contained in the Form 10-K under the captions “Business – Operating Companies – Chile – Competition,” “Business – Operating Companies – Chile – Regulatory and Legal Overview”, and
“Business – Operating Companies – Chile – Foreign Currency Controls, Dividends and Tax Regulation,” in each case insofar as such statements constitute summaries of the Chilean legal matters, documents or proceedings referred to therein, are accurate in all material respects and fairly summarize all matters referred to therein, and there are no

 

A-II(c)-1

  

  

  

material omissions under such captions with respect to the description of statutes, rules or regulations that would make the statements therein misleading.

 

6.           There are no restrictions (legal, contractual or otherwise) on the ability of the Operating Companies to declare and pay any dividends or make any payment or transfer of property or assets to its stockholders other than those described or incorporated by reference in the Pricing Disclosure Package and the Prospectus and such restrictions as would not have a material adverse effect on the prospects, condition, financial or otherwise, or in the earnings, business or operations of the Operating Companies, taken as a whole; and such descriptions, if any, fairly summarize such restrictions (without considering as restrictions for these purposes any relevant
taxes to be paid by the Operating Companies at a corporate level or by any shareholder of the Operating Companies as a foreign investor).

 

A-II(c)-2

  

  

  

ANNEX II(d)

 

 

FORM OF OPINION OF MEXICO COUNSEL FOR THE COMPANY,

 

 

PURSUANT TO SECTION 8(D)

 

1.           Comunicaciones Nextel de México, S.A. de C.V. (“Nextel México”) has been duly incorporated, is validly existing as a corporation in good standing under the laws of Mexico, has the corporate power and authority to own its property and to conduct its business as described in the Pricing Disclosure Package, the Prospectus and the 10-K Form and is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so
qualified or be in good standing would not have a material adverse effect on Nextel México and its subsidiaries, taken as a whole;

 

2.           each subsidiary of Nextel México has been duly incorporated, is validly existing as a corporation or limited liability company, as the case may be, in good standing under the laws of the jurisdiction of its organization, has the corporate power and authority to own its property and to conduct its business as described in the Pricing Disclosure Package, the Prospectus and the 10-K Form and is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good
standing would not have a material adverse effect on Nextel México and its subsidiaries, taken as a whole;

 

3.           each of Nextel México and its subsidiaries (i) has all necessary licenses, consents, authorizations, approvals, orders, certificates and permits of and from, and has made all declarations and filings with, all Mexican governmental, administrative or regulatory authorities, all self-regulatory organizations and all courts and other tribunals, to own, lease, license and use its properties and assets and to conduct its business in the manner described in or contemplated by the Pricing Disclosure Package, the Prospectus and the 10-K Form, except to the extent that the failure to obtain such consents, authorizations, approvals, orders, certificates and
permits or make such declarations and filings would not have a material adverse effect on Nextel México and its subsidiaries, taken as a whole, and (ii) has not received any notice of proceedings relating to the violation, revocation or modification of any such license, consent, authorization, approval, order, certificate or permit which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would reasonably be expected to result in a material adverse change in the condition, financial or otherwise, or in the earnings, business or operations of Nextel México and its subsidiaries, taken as a whole, except as described in the Pricing Disclosure Package, the Prospectus and the 10-K Form;

 

4.           each of Nextel México’s license-holding subsidiaries that is required pursuant to Mexican law to do so, has filed an application with the Mexican Ministry of Communications and Transportation (“SCT”) to renew 12 (twelve) of the governmental concessions they hold for an equal term as such originally granted.  All the applications

 

A-II(d)-1

  

  

  

were timely and properly filed and the SCT’s resolutions approving the requested renewals have not been issued.  Due to the foregoing, the term of 12 (twelve) of those concessions have already expired or will soon expire.  Nevertheless we do not foresee any reason according to which the SCT could deny the renewal applications since the latter should be approved under standard procedural basis, however the granting of such approval cannot be guaranteed in any manner whatsoever.

 

5.           the statements contained or incorporated by reference in the 10-K Form under the captions specifically reviewed “Business-Operating Companies-Mexico-Operating Company Overview”, “Business-Operating Companies-Mexico-Competition”, “Business-Operating Companies-Mexico-Regulatory and Legal Overview”, “Business-Operating Companies-Mexico-Foreign Currency Controls, Dividends and Tax Regulation”, and in the Pricing Disclosure Package and the Prospectus under the captions specifically reviewed “Risk Factors – Risk Factors Relating to Our Company – We operate exclusively in foreign markets, and our
assets, customers and cash flows are concentrated in Latin America, which presents risks to our operating plans”, “Risk Factors – Risk Factors Relating to Our Company – Our current and future debt may limit our flexibility and increase our risk of default”, “Risk Factors – Risk Factors Relating to Our Company – Costs, regulatory requirements and other problems we encounter as we deploy our third generation networks could adversely affect our operations.  The deployment of new technology and service offerings could distract management from our current business operations or cause network degradation and loss of customers”, “Risk Factors – Risk Factors Relating to Our Company – If our licenses to provide mobile services are not renewed, or are modified or revoked, our business may be restricted”,
“Risk Factors – Risk Factors Relating to this Offering”, in each case insofar as such statements constitute summaries of the Mexican legal matters, documents or proceedings referred to therein, are accurate in all material respects and fairly summarize all matters referred to therein, and there are no material omissions under such captions with respect to the description of statutes, rules or regulations that would make the statements therein misleading; and

 

6.           there are no restrictions (legal or contractual or otherwise) on the ability of Nextel México to declare and pay any dividends or make any payment or transfer of property or assets to its stockholders other than those described in the Pricing Disclosure Package and the Prospectus and the 10-K Form and such restrictions as would not have a material adverse effect on the prospects, condition, financial or otherwise, or in the earnings, business or operations of the Company’s Mexican subsidiaries, taken as a whole; and such descriptions, if any, fairly summarize such restrictions.

 

A-II(d)-2

  

  

  

ANNEX II(e)

 

 

FORM OF OPINION OF PERU COUNSEL FOR THE COMPANY, PURSUANT TO SECTION 8(D)

 

(A)           Nextel del Peru S.A. (“Nextel Peru”) has been duly incorporated, is validly existing as a corporation in good standing under the laws of Peru, has the corporate power and authority to own its property and to conduct its business as described in the Form 10-K, the Pricing Disclosure Package and the Prospectus and is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing would not
have a material adverse effect on Nextel Peru;

 

(B)           Nextel Peru has no subsidiaries;

 

(C)           Nextel Peru (i) has all necessary concessions, licenses, consents, authorizations, approvals, orders, certificates and permits of and from, and has made all declarations and filings with, all Peruvian governmental, administrative or regulatory authorities, all self-regulatory organizations and all courts and other tribunals, to own, lease, license and use its properties and assets and to conduct its business in the manner described in or contemplated by the Form 10-K, the Pricing Disclosure Package and the Prospectus, including providing digital enhanced specialized mobile radio services, except to the extent that the failure to obtain such consents,
authorizations, approvals, orders, certificates and permits or make such declarations and filings would not have a material adverse effect on Nextel Peru and (ii) has not received any notice of proceedings relating to the violation, revocation or modification of any such license, consent, authorization, approval, order, certificate or permit which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would reasonably be expected to result in a material adverse change in the condition, financial or otherwise, or in the earnings, business or operations of Nextel Peru, except as described in the Form 10-K, Pricing Disclosure Package and the Prospectus;

 

(D)           The statements contained in the Form 10-K, under the captions “Business-Operating Companies-Peru-Competition”, “Business-Operating Companies-Peru-Regulatory and Legal Overview” and “Business-Operating Companies-Peru-Foreign Currency Controls; Dividends and Tax Regulation” and in the Pricing Disclosure Package and the Prospectus under the captions “Risk Factors – Risk Factors Relating to Our Company.  If our licenses to provide mobile services are not renewed, or are modified or revoked, our business may be restricted” and “Risk Factors Related to Our Company – We operate
exclusively in foreign markets, and our assets, customers and cash flows are concentrated in Latin America, which represents risks to our operating plans” related to Peru, in each case insofar as such statements constitute summaries of the Peruvian law and legal matters, documents or proceedings referred to therein, are accurate in all material respects and fairly summarize all matters referred to therein, and there are no material omissions under such captions with respect to the description of statutes, rules or regulations that would make the statements therein misleading.

 

A-II(e)-1

  

  

  

Notwithstanding, in relation with the statements contained in the Form 10-K, under the caption “Business - Operating Companies - Peru - Foreign Currency Controls; Dividends and Tax Regulation”, on January 26, 2011, the rights and obligations under the legal stability agreements executed by and between the Peruvian government and Nextel International (Peru), LLC, the former majority shareholder of Nextel Peru, on May 31, 2001 and on September 21, 2007, were duly assigned to NII Mercorsur Telecom, S.L., a Spanish corporation, which is the new majority shareholder of Nextel Peru; and

 

There are no restrictions (legal, contractual or otherwise) on the ability of Nextel Peru to declare and pay any dividends or make any payment or transfer of property or assets to its stockholders other than those described in the Form 10-K, the Pricing Disclosure Package and the Prospectus, and such restrictions as would not have a material adverse effect on the prospects, condition, financial or otherwise, or in the earnings, business or operations of Nextel Peru; and such descriptions, if any, fairly summarize such restrictions.

 

 

 

 

A-II(e)-2sillenger8kex101120711.htm

Exhibit 10.1

 

	 
EACH SUBSCRIBER MUST RETURN THE FOLLOWING TO SILLENGER EXPLORATION CORP. C/O JOHN GILLESPIE AT THE FOLLOWING ADDRESS: Suite 206,277 Lakeshore Rd., E., Oakville, Ontario L6J 1H9,  Attn. John Gillespie Fax:905-842-9095

a.       ̈      Completed and executed Subscription Agreement (complete cover   page and  Schedule “A” Exemption Form); and

b.       ̈      Subscription funds by certified cheque, bank draft or money order payable to “Sillenger Exploration Corp.” or by wire transfer to the account listed on Appendix II hereto.

 

CANADIAN SUBSCRIPTION AGREEMENT

 

SILLENGER EXPLORATION CORP.

 

	SUBSCRIBER INFORMATION
	oMr. 	 
	oMrs. 	 
	oMs. 	 
SURNAME (OR NAME OF ENTITY IF NOT AN INDIVIDUAL)                                     FIRST NAME            INITIAL

	 	 
	 	 
	 	 
RESIDENTIAL OR HEAD OFFICE ADDRESS

	 	 
	 	 
	 	 
CITY                                  PROVINCE                                                                              POSTAL CODE

 

	 
SUBSCRIPTION INFORMATION

	 	 
	 
The Subscriber hereby irrevocably offers to purchase Units at a price of $0.05 per Unit.  Each Unit consists of one share of common stock, par value U.S. $0.001, (the “Shares” and each a “Share”) of Sillenger Exploration Corp. (the “Corporation”) and one half (1/2) Warrant to purchase one (1) half Share (each a “1⁄2 Warrant”).  Every two 1⁄2 Warrants equals a full warrant (the “Warrants” and each a “Warrant”) and entitles the Subscriber to purchase one Share at an exercise price of $0.10 per Share (subject to adjustment).  Warrants shall expire on the Expiration Date as defined in the Warrant Certificate, attached hereto as Schedule B. Subscribers may not purchase an odd number of Units as no fractional Shares shall be issued.  The offer and purchase of the Shares and the Warrants are all upon and subject to the terms and conditions of this Subscription Agreement, including Appendix I Terms and Conditions of the Offering, Schedule “A” Exemption Form, attached hereto, and Schedule B “Warrant Certificate”, attached hereto, all of which are incorporated into, and form part of, this agreement (collectively, the “Subscription Agreement”) as follows:

	 	 
	Number	 
Aggregate Purchase Price

	 
________ Units at U.S. $0.05 per Unit

	 
U.S. $_______________

	 	 
	 
Registration Instructions:

	 
(If there are no instructions below, the Shares will be registered in the name of the Subscriber as set out above).

	 
	 
	 
(Name)                                                                                                 (Account Reference)

	 
	 
	 
(Address)

 

 

	 
SIGNATURE OF SUBSCRIBER

	 
	 
The Subscriber certifies that the Subscriber has read this Subscription Agreement, including Appendix I Terms and Conditions of the Offering, Schedule “A” Exemption Form, attached hereto, and Schedule B, “Warrant Certificate,” attached hereto and hereby offers to purchase the Units for the aggregate amount set out above (U.S. $0.05 per Unit) on the terms and conditions as set out in this Subscription Agreement (Please ensure you have completed Schedule “A” Exemption Form).

 

EXECUTED by the Subscriber this ___  day of __________, 2011.

	 
	 
____________________ 

	 
_______________________________________  

	Signature of Witness 	 
 
Signature of Subscriber (if Subscriber is an individual) or of 

the Authorized Signatory (if the Subscriber is not an individual)    

	____________________ 	 
	 
Name of Witness

	 
	 	 
	 	 
	 
ACCEPTANCE BY THE CORPORATION

	 	 
	 
The foregoing offer is confirmed and accepted by SILLENGER EXPLORATION CORP. on the ___  day of ______________, 2011.

	 	 
	 	By:  	 
	 	Name: 
	 	Title: 

 

  

  

  

 

 

APPENDIX I

TERMS AND CONDITIONS OF THE OFFERING

SILLENGER EXPLORATION CORP.

THE TERMS AND CONDITIONS OF THE OFFERING ARE AS FOLLOWS:

 

1. Offer to Purchase: The Subscriber hereby irrevocably offers to subscribe for and to purchase the Units for an aggregate purchase price (the “Purchase Price”) set out above and on the terms and conditions contained in this Subscription Agreement.  The Corporation’s acceptance of this offer, as evidenced by the signature of an officer of the Corporation above, will constitute an irrevocable agreement between the Subscriber and the Corporation for the Subscriber to purchase from the Corporation, and for the Corporation to issue and sell to the Subscriber, the Units on such terms and conditions.  The Shares issuable upon exercise of the Warrants are herein referred to as the "Warrant Shares"; and the Shares and the Warrant Shares are sometimes herein together referred to as the "Securities."

 

2. Price of Units: The Units will be issued at a price of U.S. $0.05 per Unit.  Each Unit consists of one share of common stock, par value U.S. $0.001, (the “Shares” and each a “Share”) of Sillenger Exploration Corp. (the “Corporation”) and one half (1/2) Warrant to purchase one (1) half Share (each a “1⁄2 Warrant”).  Every two 1⁄2 Warrants equals a full warrant (the “Warrants” and each a “Warrant”) and entitles the Subscriber to purchase one Share at an exercise price of U.S. $0.10 per Share.  No fractional Shares shall be issued.  Warrants shall expire on the Expiration Date as defined in the Warrant Certificate, attached hereto as Schedule B. Subscribers may not purchase an odd number of Units; as no fractional Warrant Shares shall be issued.

 

3. Representations and Warranties of the Subscriber: The Subscriber represents and warrants to the Corporation that:

 

	
(a)  

	
the Subscriber’s decision to execute and enter into this Subscription Agreement and to purchase the Securities has not been based upon any verbal or written representation as to fact or otherwise made or purported to be made by or on behalf of the Corporation or any other person;

 

	
(b)  

	
this Subscription Agreement has been duly executed and delivered by the Subscriber and is legally binding upon and enforceable against the Subscriber in accordance with its terms, subject to the qualifications that: (i) enforcement may be limited by bankruptcy, insolvency, liquidation, reorganization, reconstruction and other similar laws of general application affecting the enforcement of creditors’ rights and applicable laws regarding limitations of actions, and (ii) an order of specific performance and an injunction are discretionary remedies and, in particular, are not available when damages are considered an adequate remedy;

 

	
(c)  

	
if an individual, the Subscriber has attained the age of majority and is legally competent to execute this Subscription Agreement and to take all actions required pursuant hereto;

 

	
(d)  

	
if a corporation, partnership or other legal entity, it has been duly incorporated or created and it has the legal capacity to enter into and be bound by this Subscription Agreement;

 

	
(e)  

	
the Subscriber is resident in the jurisdiction as set out in the face page of this Subscription Agreement and is not resident in any other jurisdiction, and the purchase by, and sale to, the Subscriber of Securities and any act, solicitation, conduct or negotiation directly or indirectly in furtherance of such sale, has occurred only in Canada;

 

	
(f)  

	
the Subscriber acknowledges that the Subscriber’s subscription may be accepted, in whole or in part, only in circumstances where the Corporation, in its sole discretion, determines that the issuance of Securities to the Subscriber is permissible under the National Instrument 45-106 Prospectus and Registration Exemptions (“NI 45-106”) or such other exemption as the Corporation may determine is available for such subscription;

 

	
(g)  

	
the Subscriber is purchasing the Securities as principal, and not on account of or on behalf of any other corporation or individual, and is an “accredited investor” as defined in NI 45-106 and has completed the Exemption Form attached hereto as Schedule “A”;

 

 

  

  

  

 

	
(h)  

	
if the Subscriber is a director and/or officer of the Corporation, the Subscriber acknowledges its subscription is being made voluntarily and that such person has not been induced to participate in this subscription by: (i) in the case of directors, expectation of appointment or continued appointment of the director with the Corporation or (ii) in the case of officers, expectation of appointment, employment, continued appointment or continued employment with the Corporation;

 

	
(i)  

	
the Subscriber is not a U.S. Person (as defined herein) and is not acquiring Securities for the account or benefit of a U.S. Person or any person in the United States, and acknowledges that none of the Securities have been or will be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or the securities laws of any state of the United States and may not be offered or sold, directly or indirectly, in the United States to, or for the account or benefit of, a U.S. person (as such term is defined in Rule 902 of Regulation S promulgated under the 1933 Act, which definition includes, but is not limited to, an individual resident in the United States and an estate or trust of which any executor, administrator or trustee, respectively, is a U.S. person and any partnership or company organized or incorporated under the laws of the United States) (a “U.S. Person”);

 

	
(j)  

	
if you are resident outside of Canada and the United States, you:

 

	
(i)  

	
are knowledgeable of, or have been independently advised as to the applicable securities laws of the securities regulatory authorities (the “Authorities”) having application in the jurisdiction in which you are resident (the “International Jurisdiction”) which would apply to the acquisition of the Securities, if any;

 

	
(ii)  

	
are purchasing the Securities pursuant to exemptions from the prospectus and registration requirements under the applicable securities laws of the Authorities in the International Jurisdiction or, if such is not applicable, you are permitted to purchase the Securities under the applicable securities laws of the Authorities in the International Jurisdiction without the need to rely on any exemption;

 

	
(iii)  

	
confirm that the applicable securities laws of the Authorities in the International Jurisdiction do not require the Corporation to make any filings or seek any approvals of any nature whatsoever from any Authority of any kind whatsoever in the International Jurisdiction in connection with the issue and sale or resale of the Securities;

 

	
(iv)  

	
confirm that the purchase of the Securities by you does not trigger an obligation to prepare and file a registration statement, prospectus or similar document, or any other report with respect to such purchase in the International Jurisdiction or continuous disclosure reporting obligations of the Corporation in the International Jurisdiction and you will, if requested by the Corporation, comply with such other requirements as the Corporation may reasonably require; and

 

	
(k)  

	
the Subscriber has consulted the Subscriber’s own legal and tax advisors with respect to the Subscriber’s investment in the Securities.

 

4. Acknowledgements of the Subscriber: The Subscriber acknowledges and agrees that:

 

	
(a)  

	
the Subscriber is relying on the Subscriber’s own due diligence of the Corporation and the Securities, and understands that the Issuer's legal counsel (“Issuer’s Counsel”) is acting for the Issuer and not for the Purchaser;

 

	
(b)  

	
the representations and warranties contained in this Subscription Agreement are made by the Subscriber with the intent that they be relied upon by the Corporation in determining the Subscriber’s suitability as a purchaser of Securities and the Subscriber hereby agrees to indemnify the Corporation against all losses, claims, costs, expenses and damages or liabilities of any kind whatsoever, including, without restriction, taxes, interest and penalties which any of them may suffer or incur, caused or arising from reliance thereon;

 

 

  

- 3 -

  

 

	
(c)  

	
the acquisition of the Securities pursuant to this Subscription Agreement is subject to acceptance, and the number of Units subscribed for is subject to allotment, by the Corporation and is further subject to the certified cheque, bank draft or money order representing payment of the Purchase Price being honoured upon presentation for payment;

 

	
(d)  

	
the Subscriber is purchasing the Securities pursuant to an exemption from the prospectus requirements under applicable securities legislation and that, as a consequence, the Subscriber is restricted from using most of the civil remedies available under such legislation, the Subscriber may not receive information that would otherwise be required to be provided to the Subscriber under such legislation, and that the Corporation is not subject to certain obligations that would otherwise apply under such legislation;

 

	
(e)  

	
the Subscriber is aware of the characteristics of the Securities, the risks relating to an investment in the Shares and the Warrant Shares and of the fact that there are resale restrictions on the Securities which may prevent the Subscriber from reselling the Securities acquired hereunder for a period of time except in accordance with very limited exemptions under applicable securities laws;

 

	
(f)  

	
the Subscriber understands that:

 

	
(i)  

	
the Corporation is not a reporting issuer in any jurisdiction in Canada and, as a result, the Securities issued to the Subscriber will be subject to resale restrictions that may never expire and if no applicable exemptions may be relied upon, or if no discretionary exemptive relief is obtained from an appropriate securities regulatory authority, the Subscriber will be required to hold the Securities for an indefinite period of time;

 

	
(ii)  

	
if the Corporation becomes a reporting issuer in Canada, there may be limitations imposed by the securities regulatory authorities on the ability of the Subscriber to resell the Securities that are in addition to any resale restrictions which may then exist;

 

	
(iii)  

	
there is no market through which the Securities may be sold and as a result, the Subscriber may not be able to dispose of the Securities on a timely basis, if at all;

 

	
(iv)  

	
no agency, governmental authority, securities commission or other regulatory body, stock exchange or other entity has passed upon the merits of the Securities and there is no government or other insurance covering the Securities; and

 

	
(v)  

	
an investment in the Securities is speculative and involves a high degree of risk and that participation in this Offering is suitable only to investors who are willing to risk a total loss of their entire investment;

 

	
(g)  

	
the Subscriber will not resell the Securities except in accordance with the provisions of applicable securities laws;

 

	
(h)  

	
the Subscriber consents to the placement of legends on any certificate or other document evidencing any of the Securities to the effect that such securities have not been registered under the 1933 Act, any state securities or “blue sky” laws, or under the prospectus and registration requirements of any applicable Canadian securities laws, and setting forth or referring to the restrictions on transferability and sale thereof contained in this Subscription Agreement,  such legend to be substantially as follows:

 

UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS FOUR MONTHS AND A DAY AFTER THE LATER OF (I) THE DISTRIBUTION DATE, AND (II) THE DATE THE ISSUER BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY.

 

  

- 4 -

  

 

“THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”).

 

NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT.

	
(i)  

	
the Corporation has not made any undertaking or representation as to the future value of the Shares, the Warrant Shares or any Security of the Corporation;

	
(j)  

	
by completing the Exemption Form  on Schedule A, the Subscriber is representing and warranting that the Subscriber satisfies one of the categories of registration and prospectus exemptions provided in NI 45-106 adopted by the Canadian securities regulatory authorities ; and

	
(k)  

	
the Subscriber will indemnify and hold harmless the Corporation and, where applicable, its directors, officers, employees, agents, advisors and shareholders, from and against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all fees, costs and expenses whatsoever reasonably incurred in investigating, preparing or defending against any claim, lawsuit, administrative proceeding or investigation whether commenced or threatened) arising out of or based upon any representation or warranty of the Subscriber contained in this Subscription Agreement or in any document furnished by the Subscriber to the Corporation in connection herewith being untrue in any material respect or any breach or failure by the Subscriber to comply with any covenant or agreement made by the Subscriber to the Corporation in connection therewith.

 

5. Covenants of the Subscriber: The Subscriber covenants and agrees with the Corporation that the Subscriber will:

 

	
(a)  

	
execute and deliver all documentation as may be required by applicable securities legislation, policy or order or by any securities commission or other regulatory authority with respect to the issuance of the Shares and the Warrant Shares; and

 

	
(b)  

	
notify the Corporation in writing forthwith at the address of the Corporation in the event of a change in any of the foregoing representations and warranties.

 

6. Closing of the Subscription: Subject to acceptance by the Corporation of this Subscription Agreement, delivery and payment for Units shall be completed concurrently with the delivery and execution of this Subscription Agreement and acceptance by the Corporation, which is intended to be completed on such times and dates as the Corporation may determine (the “Closing”).  Subscriber shall deliver by no later than two business days prior to the Closing a signed copy of this Subscription Agreement to John Gillespie, President of the Corporation, together with a certified cheque, bank draft or money order payable to “Sillenger Exploration Corp.” or wire transfer in the amount of the Purchase Price, to the Corporation pursuant to the instructions set out on the face page of this Subscription Agreement.  Unless otherwise instructed in writing, any share certificates issued representing the Shares or the Warrant Shares will be sent by mail to the Subscriber at the address set out under “Registration Instructions” on the face page of this Subscription Agreement or, if such address is not completed, to the address set out under “Subscriber Information” on the face page of this Subscription Agreement.

 

 

  

- 5 -

  

 

7. Personal Information Authorization: The Subscriber understands that the Corporation may be required to provide any one or more of the Canadian securities regulators, stock exchanges, or other regulatory agencies or the Corporation's transfer agent with the name, residential address, telephone number and e-mail address of the Subscriber, as well as information regarding the number, aggregate purchase price and type of securities purchased under this Subscription Agreement and the identities of any beneficial owners of the Securities (collectively, the "Information"), and may make any other filings of the Information as the Corporation's legal counsel deems appropriate. In addition, the Information may be used by the Corporation for the purposes of:

 

	
(a)  

	
completing the purchase of Securities pursuant to this Subscription Agreement;

	
(b)  

	
complying with all corporate governance and continuous disclosure requirements under applicable securities laws; and

	
(c)  

	
contacting the Subscriber in its capacity as an investor.

The Subscriber hereby consents to and authorizes the foregoing use and disclosure of such Information.  In the event that the Subscriber is purchasing Securities as agent on behalf of one or more undisclosed principals, the Subscriber agrees to provide, on request, all particulars as to the identity of such undisclosed principals as may be required by the Corporation in order to comply with the foregoing.

 

Each Subscriber of Securities in Ontario authorizes the indirect collection of Information by the Ontario Securities Commission and confirms that it has been notified by the Corporation: (i) that the Corporation will be delivering the Information to the Ontario Securities Commission; (ii) that such Information is being collected indirectly by the Ontario Securities Commission under the authority granted to it in applicable securities laws; (iii) that such Information is being collected for the purpose of the administration and enforcement of applicable securities laws; and (iv) that the title, business address and business telephone number of the public official in the Province of Ontario, who can answer questions about the Ontario Securities Commission's indirect collection of the Information as follows:

 

	 	 
Administrative Assistant to the Director of Corporate Finance

	 	 
Ontario Securities Commission

	 	 
18th Floor, 20 Queen Street West

	 	 
Toronto, Ontario  M5H 2S8

	 	 
Telephone: (416) 597-0681

 

8. Representations of Subscriber Regarding Money Laundering: The Subscriber represents and warrants that the funds representing the aggregate purchase price for the Securities to be purchased pursuant to this Subscription Agreement do not represent proceeds of crime for the purpose of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) (the "Money Laundering Act"). The Subscriber understands that the Corporation may in the future be required by law to disclose the Subscriber's name and other information relating to this Subscription Agreement on a confidential basis pursuant to the Money Laundering Act.  To the best of the Subscriber's knowledge, none of the funds representing the purchase price for the Securities:

 

	
  

	
(a)

	
have been or will be obtained or derived, directly or indirectly, from or related to any activity that is deemed illegal under the laws of Canada or the United States or any other jurisdiction; or

 

 

  

- 6 -

  

 

	
  

	
(b)

	
are being tendered on behalf of a person or entity who has not been identified to the Subscriber.

 

9. The Subscriber shall promptly notify the Corporation if the Subscriber discovers that any of the foregoing representations are no longer true, and to provide the Corporation with appropriate information in connection therewith.

 

 

10.  Resale Restrictions

 

The Subscriber acknowledges that any resale of any of the Securities will be subject to resale restrictions contained in the securities legislation applicable to the Subscriber or proposed transferee.  The Subscriber acknowledges that none of the Securities have been registered under the 1933 Act or the securities laws of any state of the United States.  The Securities may not be offered or sold in the United States unless registered in accordance with federal securities laws and all applicable state securities laws or exemptions from such registration requirements are available.

 

(a)           The Subscriber acknowledges that the Securities are subject to resale restrictions in Canada and may not be traded in Canada except as permitted by the applicable provincial securities laws and the rules made thereunder.

11. Costs: The Subscriber acknowledges and agrees that all costs and expenses incurred by the Subscriber (including any fees and disbursements of any special counsel retained by the Subscriber) relating to the purchase of the Securities shall be borne by the Subscriber.

12. Governing Law: The agreement resulting from the Corporation’s acceptance of this Subscription Agreement will be governed by and construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein.

 

13. Additional Information: The Subscriber understands that the Corporation provides additional information on its website www.sillenger.com, including access to its filings with the Securities & Exchange Commission.

 

14. Time of the Essence: Time is of the essence of the agreement resulting from the Corporation’s acceptance of this Subscription Agreement.

 

15. Headings:  The headings contained herein are for convenience only and shall not affect the meaning or interpretation hereof.

 

16. Entire Agreement: This Subscription Agreement will constitute, when accepted, the only agreement between the parties with respect to the subject matter hereof and shall supersede any and all prior negotiations and understandings.  The terms hereof may be amended or modified only by a written agreement between the Subscriber and the Corporation.

 

17. Successors and Assigns: Upon acceptance of this Subscription Agreement by the Corporation, the terms and conditions of this Subscription Agreement shall be binding upon and shall enure to the benefit of the Subscriber and his or her heirs, executors, administrators, personal and legal representatives and the Corporation and its successors and assigns; provided that this Subscription Agreement shall not be assignable by any party without the written consent of the other.

 

18. Counterparts:   This Agreement may be executed in two or more counterparts, each of which when executed and delivered shall be deemed an original and may be transmitted by facsimile transmission in which event it shall be for all purposes as effective as if the party had delivered an executed original thereof, and such counterparts shall together (as well as separately) constitute one and the same instrument.

 

 

  

- 7 -

  

 

SCHEDULE “A”

EXEMPTION FORM

(Capitalized terms not specifically defined herein have the meaning ascribed to such terms in the Subscription Agreement to which this form is attached.)

The Subscriber represents, warrants and certifies to the Corporation and its counsel (and acknowledges that the Corporation, and its counsel, are relying thereon) that both at the date hereof and at the Closing that it fully complies with the criteria set forth below.

PLEASE READ THE FOLLOWING INSTRUCTIONS VERY CAREFULLY:

	
1.  

	
Initial or place a checkmark in the box to the left of the applicable item in PART I.

	
2.  

	
If the Subscriber selects (a) below in PART I, the Subscriber MUST ALSO complete Part II of this Exemption Form.

	
3.  

	
The Subscriber must SIGN AND DATE this execution form in the space provided after PART II.

 

PART I

 

	
 ̈

	
(a)

	
the Subscriber is an “Accredited Investor” as such term is defined in NI 45-106 and it was not created or used solely to purchase or hold securities as an accredited investor as described in paragraph (m) of the definition of “accredited investor” in section 1.1 of National Instrument 45-106; [IF YOU SELECT THIS OPTION YOU ARE REQUIRED TO COMPLETE PART II BELOW]

 

PART II

 

The undersigned represents, warrants and certifies that it, he or she is [initial or place a check mark above the line to the left of each applicable item]:

 

	
_____

	
(a)

	
a Canadian financial institution, or an authorized foreign bank named in Schedule III of the Bank Act (Canada);

	
_____

	
(b)

	
the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada);

	
_____

	
(c)

	
a subsidiary of any person referred to in paragraphs (a) to (b), if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary;

	
_____

	
(d)

	
a person registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer, other than a person solely as a limited market dealer under one or both of the Securities Act (Ontario) or the Securities Act (Newfoundland and Labrador);

	
_____

	
(e)

	
an individual registered or formerly registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d);

	
_____

	
(f)

	
the Government of Canada or a jurisdiction of Canada, or any crown corporation, agency or wholly owned entity of the Government of Canada or a jurisdiction of Canada;

	
_____

	
(g)

	
a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l’île de Montréal or an intermunicipal management board in Québec;

	
_____

	
(h)

	
any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government;

	
_____

	
(i)

	
a pension fund that is regulated by either the Office of the Superintendent of Financial Institutions (Canada) or a pension commission or similar regulatory authority of a jurisdiction of Canada;

 

 

  

- 8 -

  

 

	
_____

	
(j)

	
an individual who, either alone or with a spouse, beneficially owns, directly or indirectly, financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000;

	
_____

	
(k)

	
an individual whose net income before taxes exceeded $200,000 in each of the two most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year;

	
_____

	
(l)

	
an individual who, either alone or with a spouse, has net assets of at least $5,000,000;

	
_____

	
(m)

	
a person, other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements;

	
_____

	
(n)

	
an investment fund that distributes or has distributed its securities only to:

	  	  	
(i)

	
a person that is or was an accredited investor at the time of the distribution,

	  	  	
(ii)

	
a person that acquires or acquired securities in the circumstances referred to in sections 2.10 Minimum amount investment and 2.19 Additional investment in investment funds of NI 45-106; or

	  	  	
(iii)

	
a person described in paragraph (i) or (ii) that acquires or acquired securities under section 2.18 Investment fund reinvestment of NI 45-106;

	
_____

	
(o)

	
an investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada for which the regulator or, in Québec, the securities regulatory authority, has issued a receipt;

	
_____

	
(p)

	
a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a fully-managed account managed by the trust company or trust corporation, as the case may be;

	
_____

	
(q)

	
a person acting on behalf of a fully-managed account managed by that person, if that person:

	  	  	
(i)is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction; and

(ii)in Ontario, is purchasing a security that is not a security of an investment fund;

	
_____

	
(r)

	
a registered charity under the Income Tax Act (Canada) that, in regard to the trade, has obtained advice from an eligibility adviser or an adviser registered under the securities legislation of the jurisdiction of the registered charity to give advice on the securities being traded;

	
_____

	
(s)

	
an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) through (d) or paragraph (i) in form and function;

	
_____

	
(t)

	
a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited investors;

	
_____

	
(u)

	
an investment fund that is advised by a person registered as an adviser or a person that is exempt from registration as an adviser; or

	
_____

	
(v)

	
a person that is recognized or designated by the securities regulatory authority or, except in Ontario and Québec, the regulator as: (i) an accredited investor, or (ii) an exempt purchaser in Alberta or British Columbia; and in either case has provided to the Corporation evidence of such recognition and designation.

 

  

- 9 -

  

 

The Investor has executed this Exemption Form as of the ______ day of ___________________, 2011.

 

	
If a trust, partnership or other entity:

	  	
If an individual:

	  	  	  
	
Name of Entity

	  	
Signature

	 	 	 
	
Type of Entity

	  	
Name of Individual

	 	 	 
	
Signature of Person Signing

	  	  
	 	 	 
	
Title of Person Signing

	  	  

 

As used in PARTS I and II the following terms have the following meaning or interpretation:

 

An issuer is an “affiliate” of another issuer if:

 

(a)           one of them is the subsidiary of the other, or

 

(b)           each of them is controlled by the same person;

 

“Canadian financial institution” means:

 

	
  

	
(a)

	
an association governed by the Cooperative Credit Associations Act (Canada) or a central cooperative credit society for which an order has been made under section 473(1) of that Act; or

 

	
  

	
(b)

	
a bank, loan corporation, trust company, trust corporation, insurance company, treasury branch, credit union, caisse populaire, financial services cooperative, or league that, in each case, is authorized by an enactment of Canada or a jurisdiction of Canada to carry on business in Canada or a jurisdiction of Canada;

 

“control person” has the meaning ascribed to that term in securities legislation except in Ontario, Québec and Nova Scotia where “control person” means any person that holds or is one of a combination of persons that holds:

 

	
  

	
(a)

	
a sufficient number of any of the securities of an issuer so as to affect materially the control of the issuer, or

 

	
  

	
(b)

	
more than 20% of the outstanding voting securities of an issuer except where there is evidence showing that the holding of those securities does not affect materially the control of the issuer;

 

“financial assets” means cash, securities, or a contract of insurance, a deposit or an evidence of a deposit that is not a security for the purposes of securities legislation;

 

“foreign jurisdiction” means a country other than Canada or a political subdivision of a country other than Canada;

 

“fully managed account” means an account of a client for which a person makes the investment decisions if that person has full discretion to trade in securities for the account without requiring the client’s express consent to a transaction;

 

“investment fund” has the same meaning as in National Instrument 81-106 Investment Fund Continuous Disclosure and means a mutual fund or a non-redeemable investment fund;

 

“jurisdiction” means a province or territory of Canada except when used in the term foreign jurisdiction;

 

“local jurisdiction” means the jurisdiction in which the Canadian securities regulatory authority is situated;

 

“non-redeemable investment fund” has the same meaning as in National Instrument 81-106 Investment Fund Continuous Disclosure and means an issuer:

 

(a)           whose primary purpose is to invest money provided by its securityholders;

(b)           that does not invest;

	
  

	
(i)

	
for the purpose of exercising or seeking to exercise control of an issuer, other than an issuer that is a mutual fund or a non-redeemable investment fund; or

	
  

	
(ii)

	
for the purpose of being actively involved in the management of any issuer in which it invests, other than an issuer that is a mutual fund or a non-redeemable investment fund; and

(c)           that is not a mutual fund;

 

 

  

- 10 -

  

“person” includes an individual, a corporation, a partnership, trust, fund and an association, syndicate, organization or other organized group of persons, whether incorporated or not; and an individual or other person in that person’s capacity as a trustee, executor, administrator or personal or other legal representative;

 

“regulator” means, for the local jurisdiction, the Executive Director as defined under securities legislation of the local jurisdiction;

 

“related liabilities” means:

 

	
  

	
(a)

	
liabilities incurred or assumed for the purpose of financing the acquisition or ownership of financial assets; or

(b)           liabilities that are secured by financial assets;

“securities legislation” means securities legislation as such term is defined in National Instrument 14-101 Definitions;

 

“spouse” means, an individual who:

 

	
  

	
(a)

	
is married to another individual and is not living separate and apart within the meaning of the Divorce Act (Canada), from the other individual;

	
  

	
(b)

	
is living with another individual in a marriage-like relationship, including a marriage-like relationship between individuals of the same gender; or

	
  

	
(c)

	
in Alberta, is an individual referred to in paragraph (a) or (b), or is an adult interdependent partner within the meaning of the Audit Interdependent Relationships Act (Alberta); and

“subsidiary” means an issuer that is controlled directly or indirectly by another issuer and includes a subsidiary of that subsidiary.

 

 

  

- 11 -

  

 

SCHEDULE B

 

FORM OF WARRANT CERTIFICATE

 

SILLENGER EXPLORATION CORP.

Incorporated Under the Laws of the State of Nevada

 

 

	NO. _______________ 	______________ Common Shares 

                                                  

Certificate for Common Stock

Purchase Warrants

 

UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS FOUR MONTHS AND A DAY AFTER THE LATER OF (I) THE DISTRIBUTION DATE, AND (II) THE DATE THE ISSUER BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY.

 

“THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”).

NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT.

1.  This Warrant Certificate certifies that _________________, a(n) __________________,  or registered assigns ("Warrant Holder"), is the registered owner of the above-indicated number of Warrants expiring _____________  ("Expiration Date").  One (1) Warrant entitles the Warrant Holder to purchase one share of common stock, $0.001 par value ("Share"), from Sillenger Exploration Corp., a Nevada corporation ("Company"), at a purchase price of U.S. $0.10 per share of Common Stock ("Exercise Price"), commencing _____________, and terminating on the Expiration Date ("Exercise Period"), upon surrender of this Warrant Certificate with the exercise form hereon duly completed and executed with payment of the Exercise Price at the offices of the Company, 277 Lakeshore Road, E., Suite 206, Oakville, Ontario, L6J 1H9, but only subject to the conditions set forth herein.

 

 

  

- 12 -

  

 

             2.  Upon due presentment for transfer of this Warrant Certificate at the offices of the Company, a new Warrant Certificate or Warrant Certificates of like tenor and evidencing in the aggregate a like number of Warrants, subject to any adjustments made in accordance with the provisions of this Warrant, shall be issued to the transferee in exchange for this Warrant Certificate, subject to the limitations provided in this Warrant.

 

3.  The Warrant Holder of the Warrants evidenced by this Warrant Certificate may exercise all or any whole number of such Warrants during the period and in the manner stated herein.  The Exercise Price shall be payable in lawful money of the United States of America and in cash or by certified or bank cashier's check or bank draft payable to the order of the Company.  If upon exercise of any Warrants evidenced by this Warrant Certificate, the number of Warrants exercised shall be less than the total number of Warrants so evidenced, there shall be issued to the Warrant Holder a new Warrant Certificate evidencing the number of Warrants not so exercised.

 

4. Restrictive Legend and Registration.

 

(a) Certificates representing shares of Common Stock issued pursuant to this Warrant shall bear a legend substantially in the form of the legend set forth on the first page of this Warrant Certificate to the extent that and for so long as such legend is required pursuant to applicable law.

 

(b) The Company agrees to reissue these Warrants or certificates representing any of the Warrant Shares, without the legend if at such time, prior to making any transfer of any such securities, the Warrant Holder shall give written notice to the Company upon the occurrence of: (a) either (i) the Company has received an opinion of counsel reasonably satisfactory to the Company, to the effect that the registration of such securities under the 1933 Act is not required in connection with such proposed transfer, (ii) a registration statement under the 1933 Act covering such proposed disposition has been filed by the Company with the Securities and Exchange Commission and has become effective under the 1933 Act and the Warrant Holder provides the Company’s transfer agent with a written representation that a current prospectus has been delivered to the purchaser at or before the time of the sale or transfer of the Warrant Shares, (iii) the Company has received other evidence reasonably satisfactory to the Company that such registration and qualification under the 1933 Act and state securities laws are not required, or (iv) the Holder provides the Company with reasonable assurances that such security can be sold pursuant to Rule 144 under the 1933 Act; and (b) either (i) the Company has received an opinion of counsel reasonably satisfactory to the Company, to the effect that registration or qualification under the securities or "blue sky" laws of any 

 

 

  

- 13 -

  

 

 

state is not required in connection with such proposed disposition, or (ii) compliance with applicable state securities or "blue sky" laws has been effected or a valid exemption exists with respect thereto. The Company will respond to any such notice from a holder within three (3) business days. In the case of any proposed transfer under this Section 3(b), the Company will use reasonable efforts to comply with any such applicable state securities or "blue sky" laws, but shall in no event be required, (x) to qualify to do business in any state where it is not then qualified, (y) to take any action that would subject it to tax or to the general service of process in any state where it is not then subject, or (z) to comply with state securities or “blue sky” laws of any state for which registration by coordination is unavailable to the Company. The restrictions on transfer contained in this Section 4(b) shall be in addition to, and not by way of limitation of, any other restrictions on transfer contained in any other section of this Warrant Certificate. Whenever a certificate representing the Warrant Shares is required to be issued to a the Holder without a legend, in lieu of delivering physical certificates representing the Warrant Shares, provided the Company’s transfer agent is participating in the DTC Fast Automated Securities Transfer program, the Company shall use its reasonable best efforts to cause its transfer agent to electronically transmit the Warrant Shares to the Holder by crediting the account of the Holder's prime broker with DTC through its DWAC system (to the extent not inconsistent with any provisions of this Warrant or the Subscription Agreement).

 

5.  No Warrant may be exercised after 5:00 p.m. Eastern Time on the Expiration Date and any Warrant not exercised by such time shall become void, unless the Expiration Date of this Warrant is extended by the Company.

 

6.  After each adjustment of the Exercise Price pursuant to this paragraph 5, the number of shares of Common Stock purchasable on the exercise of each Warrant shall be the number derived by dividing such adjusted pertinent Exercise Price into the original pertinent Exercise Price.  The pertinent Exercise Price shall be subject to adjustment as follows:

 

In the event, prior to the expiration of the Warrants by exercise or by their terms, the Company shall issue any shares of its Common Stock as a share dividend or shall subdivide the number of outstanding shares of Common Stock into a greater number of shares, then, in either of such events, the Exercise Price per share of Common Stock purchasable pursuant to the Warrants in effect at the time of such action shall be reduced proportionately and the number of shares purchasable pursuant to the Warrants shall be increased proportionately. Conversely, in the event the Company shall reduce the number of shares of its outstanding Common Stock by combining such shares into a smaller number of shares, then, in such event, the Exercise Price per share purchasable pursuant to the Warrants in effect at the time of such action shall be increased proportionately and the number of shares of Common Stock at that time purchasable pursuant to the Warrants shall be decreased proportionately. Any dividend paid or distributed on the Common Stock in shares of any other class of the Company or securities convertible into shares of Common Stock shall be treated as a dividend paid in Common Stock to the extent that shares of Common Stock are issuable on the conversion thereof.

 

 

  

- 14 -

  

7.  The Company agrees to include the shares underlying this Warrant Certificate in the next Registration Statement that the Company files with the Securities and Exchange Commission (SEC), if any.  If this Registration Statement is declared effective by the SEC, the Company agrees to use its best efforts to keep the Registration Statement effective until all warrants have been exercised or the Expiration Date, whichever occurs first.  In the event that the Registration Statement is not declared effective by the SEC for any reason, including withdrawal of the Registration Statement by the Company, the Company agrees to include these shares in the next Registration Statement filed by the Company.

 

8.  Upon receipt by the Company of evidence satisfactory to it (in the exercise of its reasonable discretion) of the loss, theft, destruction or mutilation of this Warrant Certificate, and (in the case of loss, theft or destruction) of reasonably satisfactory indemnification, and upon surrender and cancellation of this Warrant Certificate, if mutilated, the Company shall execute and deliver a new Warrant Certificate of like tenor and date.

 

9. Any notice, demand or delivery authorized by this Warrant Certificate shall be in writing and shall be given to the Holder or the Company, as the case may be, at its address (or telecopier number) set forth below, or such other address (or telecopier number) as shall have been furnished to the party giving or making such notice, demand or delivery:

 

If to the Company:

 

Sillenger Exploration Corp.

277 Lakeshore Road, E., Suite 206

Oakville, Ontario, L6J 1H9

Fax: (905) 842-9095

Attention: John Gillespie

 

with a copy to:

 

The Norman Law Firm PLLC

8720 Georgia Avenue, Suite 906

Silver Spring, MD 20910

Fax: (301) 588-4888

Attention: Elton F. Norman

 

  

- 15 -

  

 

If to the Warrant Holder:

 

Name:  ______________________

 

Address:______________________

 

_______________________

 

Fax:         _______________________

 

 

Each such notice, demand or delivery shall be effective (i) if given by telecopy, when such telecopy is transmitted to the telecopy number specified herein and the intended recipient confirms the receipt of such telecopy or (ii) if given by any other means, when received at the address specified herein.

 

10. Prior to exercise of any of these Warrants, the Warrant Holder shall not, by virtue hereof, be entitled to any rights of a shareholder of the Company, including, without limitation, the right to vote, to receive dividends or other distributions, to exercise any preemptive right or any notice of any proceedings of the Company except as may be specifically provided for herein.

 

11. This Warrant Certificate and all rights arising hereunder shall be construed and determined in accordance with the internal laws of the Province of Ontario and the Laws of Canada applicable therein, and the performance thereof shall be governed and enforced in accordance with such laws.

 

12. Any provision of this Warrant Certificate may be amended or waived if, and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by the Warrant Holder and the Company, or in the case of a waiver, by the party against whom the waiver is to be effective. No failure or delay by either party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its President and Chief Executive Officer.

 

 

	Dated: July _____, 2011  	Sillenger Exploration Corp. 
	 	 
	 	 
	 	____________________________ 
	 	John Gillespie, President and 
	 	Chief Executive Officer 
	 	Sillenger Exploration Corp. 

 

  

- 16 -

  

                                                                   

                                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 - 
	TEN ENT - as tenants by the entireties 	Custodian
	 	------------------------- 
	 	 
	JT TEN  - as joint tenants with right  	(Cust)    (Minor) 
	       Of survivorship and not as 	under Uniform Gifts 
	       Tenants in common 	to Minors Act _______ 
	 	                         (State) 

 

Additional abbreviations may also be used though not in the above list.

FORM OF ASSIGNMENT

(To be executed by the Registered Holder if he

desires to assign Warrants evidenced by the

within Warrant Certificate)

     FOR VALUE RECEIVED, ________________________________ hereby sells, assigns and transfers unto ______________________________ Warrants, evidenced by the within Warrant Certificate, and does hereby irrevocably constitute and appoint

______________________ ______________ Attorney to transfer the said Warrants evidenced by the within Warrant Certificate on the books of the Company, with full power of substitution.

Dated:  _____________________                                                                    _________________________

                                                             Signature

NOTICE:  The above signature must correspond with the name as written upon the face of the within Warrant Certificate in every particular, without alteration or enlargement or any change whatsoever.

Signature Guaranteed:  __________________________________________

 

 

  

- 17 -

  

FORM OF ELECTION TO PURCHASE

(To be executed by the Holder if he desires to

exercise Warrants evidenced by the within Warrant Certificate)

To Sillenger Exploration Corp.:

     The undersigned hereby irrevocably elects to exercise ____________  Warrants, evidenced by the within Warrant Certificate for, and to purchase  thereunder, ________________ full shares of Common Stock issuable upon exercise  of said Warrants and delivery of $____________ and any applicable taxes.

        The undersigned requests that certificates for such shares be issued in the name of:

(Please print name and address):

______________________________________________________________

_______________________________________________________________

________________________________   _______________________________

                                                                               (Social Security or Tax ID #)

If said number of Warrants shall not be all the Warrants evidenced by the within Warrant Certificate, the undersigned requests that a new Warrant Certificate evidencing the Warrants not so exercised be issued in the name of and delivered to:

 

_____________________________________________________________

_____________________________________________________________

                                                                 (Please print name and address)

Dated: ____________________   Signature: ________________________

 

NOTICE: The above signature must correspond with the name as written upon the face of the within Warrant Certificate in every particular, without alteration or enlargement or any change whatsoever, or if signed by any other person the Form of Assignment hereon must be duly executed and if the certificate representing the shares or any Warrant Certificate representing Warrants not exercised is to be registered in a name other than that in which the within Warrant Certificate is

registered, the signature of the holder hereof must be guaranteed.

 

 

  

- 18 -

  

Signature Guaranteed:  __________________________________________

 

IF NOT EXERCISED THROUGH THE COMPANY, SIGNATURE MUST BE GUARANTEED BY A COMMERCIAL BANK OR MEMBER FIRM OF ONE OF THE FOLLOWING STOCK EXCHANGES: NEW YORK STOCK EXCHANGE, PACIFIC COAST STOCKEXCHANGE, TORONTO STOCK EXCHANGE OR MIDWEST STOCK EXCHANGE.

 

 

 

 

 

 

  

- 19 -

  

APPENDIX II

 

Electronic Funds Transfer Advice                                                                                                           (U.S. Dollar Account)

PLEASE COMPLETE AND FAX TO:

Sillenger Exploration Corp.                                                              Attn: John Gillespie

Fax Number: (905) 842-9095                                                              Telephone No.  (905) 582-2434

	
Sender:

	
_______

	  	
Contact Person:                       _______

	
 

	  	
Telephone No:                         _______

	
 

	
Fax No:           _______

	  	
Email Address:

	
 

	 	 	 
	
Amount:

	
_______

	  
	
Currency:

	
U.S.         

	  
	
Sending Bank:

	
_______

	  
	  	
SWIFT code:                _______

	
 

	
Bank No.     _______

	  	
Transit No:                    _______

	
 

	  
	  	
Contact Person:           _______

	
 

	  	
Telephone No:             _______

	
 

	
Fax No:          _______

	  	
Outgoing Wire

Reference LVTS No:                _______

	
 

 

	  
	 	 	 
	
Date Sent:

	
_______

	  
	  	  	  	  
	
Receiving Bank:

	
Bank:

	  	
Bank of Montreal

	  	
Branch:

	  	
239 Lakeshore Road, East Oakville, Ontario Canada L6J 1H7

	  	
Bank ID and Transit No:

	  	
011 23822

	  	
IBAN Code:

	  	
CC00123822

	  	
Swift Code:

	  	
BOFMCAM2

	  	
Account Holder:

	  	
Sillenger Exploration Corp.

277 Lakeshore E., Suite 206

Ontario CANADA  L6J 1H9

	 	 	 	 
	  	
Account No:

	  	
05-14519

	  	  	  	  
	
Reference:

	
_______

	  	  
	
 

Please deduct the wire charge from the source of remittance

	  	  
	
Confirmation:

	
Please fax this form to us as soon as the funds are sent so we can follow-up and make sure that they are received and properly credited

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00197-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00197-of-00352.parquet"}]]