Document:

Filed by Ched Corporate Solutions - www.chedcorp.com - 1-888-567-CHED (2433) - Sanborn Resources Ltd. - Exhibit 10.1

  
 STOCK PURCHASE AGREEMENT
  
 

 This STOCK PURCHASE AGREEMENT (this “Agreement”) is made December 30, 2013, and is by and among Tuscan Capital, Ltd., a corporation formed under the laws of the Cayman Islands (the “Buyer”), and Sanborn Resources, Ltd., a Delaware corporation (the “Seller”). Buyer and Seller shall individually be referred to herein as a “Party”, and collectively as the “Parties”.
  
  
  
RECITALS
 

 WHEREAS, Seller is the owner of all of the issued and outstanding shares of common stock of Inti Holdings Limited, a corporation formed under the laws of the Cayman Islands (“Inti”);
 

 WHEREAS, the Buyer desires to purchase all of the issued and outstanding shares of Inti from Seller (the “Shares”) upon the terms and subject to the conditions as set forth herein;
 

 NOW, THEREFORE, in consideration of the mutual agreements, covenants, representations and warranties hereinafter contained, the Parties hereto, intending to be legally bound, hereby agree as follows:

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 AGREEMENT
 

 SECTION 1. Definitions
 

 In this Agreement:
  
 1.1  “Actual Knowledge,” when used in reference to a Party, means the actual knowledge as of the date of this Agreement of the person attributed to have such Actual Knowledge.

  
 1.2  “Breach” means a breach of a representation, warranty, covenant, obligation, or other provision of this Agreement or any instrument delivered pursuant hereto, and will be deemed to have occurred if there is or has been (a) any inaccuracy in, or breach of, or any failure to perform, or comply with, such representation, warranty, covenant, obligation, or other provision, or (b) any claim (by any Person (as hereinafter defined)) or other occurrence or circumstance that is or was inconsistent with such representation, warranty, covenant, obligation, or other provision, and the term “Breach” means any such inaccuracy, breach, failure, claim, occurrence, or circumstance.
 

 1.3   “Buyer” has the meaning set forth in the preamble hereto.
 

 1.4   “Closing” has the meaning set forth in Article 3 hereof. 
 

 1.5   “Encumbrance” means any charge, claim, community property interest, condition, equitable interest, lien, option, pledge, security interest, right of first refusal, or restriction of any kind, including any restriction on use, voting, transfer, receipt of income, or exercise of any other attribute of ownership.
 

 1.6   “Governmental Body” means any national, federal, state or local governmental, judicial or regulatory agency, authority or body within or outside the United States.
 

 1.7   “Intellectual Property” means intangible assets of the Inti, within the meaning of GAAP; 
 

 1.8   “Knowledge,” when used in reference to a Party, means the Actual Knowledge as of the date of this Agreement.
 

 1.9   “Legal Requirement” means any federal, state, local, municipal, foreign, international, multinational, judgment or other administrative order, decree, constitution, law, ordinance, principle of common law, rule, regulation, statute, or treaty.
 

 1.10  “Liability” means any liability (whether known or unknown, whether asserted or unasserted, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, and whether due or to become due), including, but not limited to, any liability for Taxes.
 

 1.11  “Person” means any individual, corporation (including any non-profit corporation), general or limited partnership, limited liability Inti, joint venture, estate, Buyer, association, organization, labor union, or other entity or governmental body.
 

 1.12  “Proceeding” means any action, arbitration, audit, hearing, investigation, litigation, or suit (whether civil, criminal, administrative, investigative, or informal) commenced, brought, conducted, or heard by or before, or otherwise involving, any Governmental Body or arbitrator.
 

 1.13  “Purchase Price” has the meaning set forth in Section 2.2 hereof.
 

 1.14  “Securities Act” means the Securities Act of 1933, as amended, or any successor law, and any and all regulations and rules issued pursuant to such act or any successor law.
 

 1.15  “Tax” means any net income, gross income, gross receipts, sales, use, ad valorem, franchise, profits, license, excise, severance, stamp, occupation, premium, property or windfall profit tax, custom duty or other tax, governmental fee or other like assessment or charge of any kind whatsoever, together with any interest and any penalty, addition to tax or additional amount imposed by any taxing authority (whether domestic or foreign).
 

 1.16  “Tax Return” means any return (including any information return), report, statement, schedule, notice, form, or other document or information filed with or submitted to, or required to be filed with or submitted to, any Governmental Body in connection with the determination, assessment, collection, or payment of any Tax or in connection with the administration, implementation, or enforcement of, or compliance with, any Legal Requirement relating to any Tax.
  
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 SECTION 2. Purchase and Sale 
 

 2.1   Purchase and Sale of the Shares. Subject to the terms and conditions of this Agreement, at the Closing, the Seller shall sell to the Buyer the Shares. 
 

 2.2   Purchase Price. In full consideration of the sale, conveyance, transfer and delivery by Seller to the Buyer of the Shares, the Seller shall assign and the Buyer shall assume the promissory notes, including all principal and interest payments outstanding as of the Closing, as listed in Schedule 2.2 attached hereto.
  
 
 SECTION 3. Closing
 

 3.1   Time and Place. The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place immediately after both Parties have executed this Agreement, and Seller has received proper authorization from its board of directors authorizing Seller’s entry into this Agreement for the sale of the Shares to Buyer.

 3.2   Closing Procedures. On the date of the Closing, the Parties to this Agreement shall follow all procedures as contemplated by this Agreement without variation except as otherwise agreed upon in writing.
 

 3.3   Deliveries. At the Closing:
  
 3.3.1.   The Seller shall deliver to Buyer:
 

 (a)   All available books and records of Inti;
  
  
(b)   Resolutions of the Board of Directors of Seller authorizing entry into this Agreement, and the sale of the Stock to Buyer;
 

 (c)   Such other documents and instruments as the Buyer, or its counsel, 
 may reasonably request to effectuate the Closing and any other transactions contemplated hereby.
 

 3.3.2.   The Buyer shall deliver to Seller:
 

 (a)   Assignment and Assumption of Debt Agreements for the promissory notes as listed in Schedule 2.2;
 

 (b)   Consents from the note holders to the Assignment and Assumption of Debt Agreements for the promissory notes as listed in Schedule 2.2; 
 

 (c)   Such other documents and instruments as the Seller, or its counsel, may reasonably request to effectuate the Closing and/or any other transactions contemplated hereby.
 

              SECTION 4. Representations and Warranties of the Seller
 

 For good and valuable consideration, the Seller hereby represents and warrants to the Buyer as follows:
 

 4.1   Title to the Shares. The Seller represents and warrants that it is the lawful record and beneficial owners of the Shares, free and clear of any and all Encumbrances whatsoever (except restrictions on transfer imposed by the Securities Act and applicable securities laws) and the Seller has good and marketable title thereto, and the delivery of the Shares by the Seller to the Buyer pursuant to this Agreement will convey to the Buyer lawful, valid and indefeasible title thereto, free and clear of all Encumbrances whatsoever (except restrictions on transfer imposed by the Securities Act and applicable securities laws). The Shares are not subject to any voting arrangement or other contract, agreement, arrangement, commitment or understanding, including, without limitation, any such contract, agreement, arrangement, commitment or understanding restricting or otherwise relating to the voting, dividend rights or disposition of the Shares.
 

 4.2   Necessary Authority. The Seller has full power and authority to execute and deliver this Agreement and the other agreements contemplated hereby, and to consummate the transactions contemplated hereby and thereby; (b) this Agreement has been duly executed and delivered by the Seller and constitutes the legal, valid and binding obligation of the Seller, enforceable against the Seller in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization or other laws affecting the enforcement of creditors’ rights generally now or hereafter in effect, and subject to the availability of equitable remedies.
 

 4.3   No Approvals or Conflicts. The Seller hereby represents that: the execution, delivery and performance of this Agreement by such Seller and the consummation of the transactions contemplated hereby, do not and will not: (i) require the consent or approval of, or filing with, any Person or Governmental Body, (ii) violate any law, regulation, judgment or order binding upon the Seller, or (iii) to the best of Seller’ Knowledge constitute or result in the breach of any provision of, or constitute a default under, any agreement, indenture or other instrument to which the Seller are a party or by which the Seller or their assets may be bound.
 

 4.4   Completeness of Statements. No representation or warranty of the Seller herein, and no written statement or certificate furnished, or to be furnished, by or on behalf of the Seller to the Buyer, or their agents pursuant hereto or in connection with the transactions contemplated hereby, contains or will contain on the Closing any untrue statement of a material fact or omits or will omit to state a material fact necessary in light of the circumstances to make the statements contained herein or therein not misleading.
  
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 SECTION 5. Representations and Warranties of the Seller Regarding Inti
 

 For good and valuable consideration, the Seller and Inti, hereby represent and warrants to the Buyer as follows:
 

 5.1   Existence and Authority; Organization.
 

 5.1.1   Inti is a corporation duly organized, validly existing and in good standing under the laws of the Cayman Islands and is duly authorized to conduct business and is in good standing under the laws of each jurisdiction where such qualification is required.
  
 5.1.2   Seller and Inti has heretofore delivered to Buyer the complete and correct copies of Inti’s organizational documents, all minutes of any board or member actions and its Bylaws and any amendments thereto;
 

 5.1.3   No Approvals or Conflicts. The execution, delivery and performance of this Agreement by Seller and the consummation of the transactions contemplated hereby, do not and will not (i) require the consent or approval of, or filing with, any Person or Governmental Body, (ii) violate any material Legal Requirement binding upon the Seller and/or Inti, or (iii) constitute or result in the material breach of any provision of, or constitute a default under, any agreement, indenture or other instrument to which Seller and/or Inti is a party or by which Inti or its assets may be bound. At Closing, Inti shall have obtained all consents from all necessary third parties.
 

 5.2   No Bankruptcy, Litigation. There has not been filed any petition or application, or any proceedings commenced, by or against, or with respect to any assets of Inti, under Title 11 of the United States Code or any other law, domestic or foreign, relating to bankruptcy, reorganization, compromise, arrangement, insolvency, readjustment of debt or creditors’ rights, and the Inti has not made any assignment for the benefit of creditors. Inti is not a party in any litigation or similar Proceeding. 
 

 5.3   Brokers’ Fees. Seller and Inti has no liability or obligation to pay any fees or commissions to any broker, finder, or agent with respect to the transactions contemplated by this Agreement.
 

 5.4   Books and Records. The books of account, minute books, stock record books, and other records of Inti, all of which have been made available to the Buyer, are complete and correct and have been maintained in accordance with sound business practices. At the Closing, all of those books and records will be delivered to Buyer.
 

 5.5   Title to Properties; Encumbrances. Inti owns all the assets located in the facilities operated by the Inti or reflected as owned in the books and records of the Inti, including all of the assets reflected in the Financial Statements. 
 

 5.6   Legal Compliance and Proceedings. Inti has not received any notice from a governmental agency alleging that it is not in compliance with all material Legal Requirements associated with the operation of the business and there is no pending Proceeding: (a) that has been commenced by or against the Inti and/or the Seller or that otherwise relates to or may affect the business of, or any of the property or assets owned or used by Inti; or (b) that challenges, or that may have the effect of preventing, delaying, making illegal, or otherwise interfering with, any of the transactions contemplated hereunder.
 

 5.7   Taxes.
 

 5.12.1  Inti has timely filed or caused to be timely filed (or has received an appropriate extension of time to file) all material Tax Returns that are or were required to be filed by it prior to Closing, pursuant to applicable Legal Requirements, and such Tax Returns were true and correct in all material respects. Inti has made available to the Buyer copies of all such Tax Returns relating to income or franchise taxes filed since the inception of Inti.
 

 5.12.2  Inti has paid (or made appropriate provision in the Financial Statements for the payment of) all Taxes that have or may have become due pursuant to material Tax Returns or otherwise, or pursuant to any assessment received by Inti. Inti has withheld and paid over to the appropriate Governmental Body all Taxes required by law, rule or regulation to have been withheld and paid by the Inti in connection with amounts paid by or owing to any employee, independent contractor, creditor, member or other third party. The Inti is under no obligation to prepay, and has not prepaid, any taxes.
 

 5.12.3  No claims have ever been made against Inti by any tax authority in a jurisdiction where the Inti does not file material Tax Returns that it is or may be subject to taxation by that jurisdiction. There is no pending, or threatened in writing, action, audit, proceeding or investigation for the assessment or collection of any Taxes.
 

 5.12.4  No power of attorney has been granted by the Inti, and is currently in force, with respect to any matter relating to Taxes, and there are no liens (other than liens for Taxes that are not yet due and payable or which are being contested in good faith) on any assets of the Inti that arose in connection with any failure (or alleged failure) to pay any Tax, except for liens which would not, individually or in the aggregate, have a material adverse effect with respect to the Inti.
 

 5.8   Intellectual Property. Inti does not own or use any Intellectual Property in its operations. To the Actual Knowledge of Seller, there is no claim alleging that the Intellectual Property utilized in the Inti’s operations infringes upon the rights of any third party.
 

 5.9   Completeness of Statements. No representation or warranty herein, and no written statement or certificate furnished or to be furnished by or on behalf of Inti to the Buyer pursuant hereto or in connection with the transactions contemplated hereby, contains or will contain as of the Closing any untrue statement of a material fact or omits or will omit to state a material fact necessary in light of the circumstances to make the statements contained herein or therein not misleading.
  
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 SECTION 6. Representations and Warranties of the Buyer
  
  
For good and valuable consideration, Buyer represents and warrants to Seller as follows:
 

 6.1   Necessary Authority. The Buyer has full power and authority to execute and deliver this Agreement and the other agreements contemplated hereby, and to consummate the transactions contemplated hereby and thereby. This Agreement has been duly executed and delivered by the Buyer and constitutes the legal, valid and binding obligation of the Buyer, enforceable against the Buyer in accordance with its terms, except as the same may be limited by bankruptcy, insolvency, reorganization or other laws affecting the enforcement of creditors’ rights generally now or hereafter in effect, and subject to the availability of equitable remedies.
 

 6.2   No Approvals or Conflicts. The execution, delivery and performance of this Agreement by the Buyer and the consummation of the transactions contemplated hereby do not and will not: (a) require the consent or approval of, or filing with, any person or public authority; (b) constitute or result in the breach of any provision of, or constitute a default under any agreement, indenture or other instrument to which the Buyer is a party or by which its assets may be bound; or (c) violate any law, regulation, judgment or order binding upon the Buyer.
 

 6.3   Completeness of Statements. No representation or warranty of the Buyer herein and no written statement or certificate furnished or to be furnished by or on behalf of the Buyer to the Seller or its agents pursuant hereto or in connection with the transactions contemplated hereby, contains or will contain on the Closing any untrue statement of a material fact or omits or will omit to state a material fact necessary in light of the circumstances to make the statements contained herein or therein not misleading.
 

 6.4   Brokers’ Fees. Neither Buyer nor any other party with whom or for whom Buyer may have contracted has any liability or obligation to pay any fees, commissions or any other amounts of any kind whatsoever to any broker, finder or agent with respect to the transactions contemplated by this Agreement.
 

 6.5   Investor Representations. 
  
 6.5.1  Purchase for Own Account. The Shares to be delivered at the Closing, will be acquired for investment for the Buyer's own account, not as a nominee or agent, and not with a view to the public resale or distribution thereof within the meaning of the Regulation S of the Securities Act, and Buyer has no present intention of selling, granting any participation in or otherwise distributing the same.
  
 6.5.2  Investment Experience. Buyer understands that the acquisition of the Shares involves substantial risk. Buyer has experience as an investor in securities of companies and acknowledges that it is able to fend for itself, can bear the economic risk of its investment and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of its investment and protecting its own interests in connection with this investment.
  
 6.5.3  Investor Status. Buyer is an "accredited investor" within the meaning of Rule 501(a) of Regulation D, and a non-US Person as defined under Regulation S of the Securities Act.
  
 6.5.4  Restricted Securities. Buyer understands that (i) the Shares are characterized as "restricted securities" under the Securities Act, in as much as they are being acquired from Seller in a transaction not involving a public offering and (ii) under the Securities Act and applicable rules and regulations thereunder, such securities may be resold without registration under the Securities Act only in certain limited circumstances. Buyer is familiar with Rule 144 under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act. At the end of any applicable holding period as required, Purchaser agrees to resell the Shares in accordance with Regulation S of the Securities Act, or pursuant to registration or an exemption.
  
 6.5.5  Governmental Review. Buyer understands that no federal or state agency or any other government or governmental agency has passed upon or made any recommendation or endorsement of the Shares.
  
 SECTION 7. Covenants
 

 7.1   Pre-Closing Covenants. The Parties hereto agree as follows with respect to the period between the execution of this Agreement and the Closing.
 

 7.1.1  General. Each of the Parties will use his or its reasonable best efforts to take all action and to do all things necessary, proper, or advisable in order to consummate and make effective the transactions contemplated by this Agreement.
 

 7.1.2  Notices and Consents. Each of the Parties will give any notices to, make any filings with, and use its reasonable best efforts to obtain any authorizations, consents, and approvals of governments and governmental agencies in connection with the matters referred to herein.
 

 7.1.3  Operation of Business. Inti will not, and the Seller will not cause or permit the Inti to, engage in any practice, take any action, or enter into any transaction outside the ordinary course of business.
  
  
7.1.4  Preservation of Business. Inti will, and the Seller will cause the Inti to, keep its business and properties substantially intact, including its present operations, physical facilities, working conditions, and relationships with lessors, licensors, suppliers, customers, and employees.
 

 7.1.5  Full Access. Inti and the Seller will permit, and the Seller will cause Inti to permit, representatives of the Buyer to have reasonable access to all premises, properties, personnel, books, records (including Tax records), contracts, and documents of, or pertaining to Inti.
 

 7.1.6  Notice of Developments. Each Party will give prompt written notice to the others of any adverse development causing a breach of any of his or its own representations and warranties above.
 

 7.1.7  Exclusivity. Until the termination of this Agreement, the Seller will not (and the Seller will not cause or permit the Inti to): (a) solicit, initiate or encourage the submission of any proposal or offer from any Person relating to the acquisition of any securities, or any substantial portion of the assets of Inti (including any acquisition structured as a merger, consolidation, or share exchange), or (b) participate in any discussions or negotiations regarding, furnish any information with respect to, assist or participate in, or facilitate in any other manner any effort or attempt by any Person to do or seek any of the foregoing.
 

 7.1.8  Post-Closing Covenants. The Parties to this Agreement agree as follows with respect to the period following the Closing:
 

 (a)   General. In case at any time after the Closing further action is necessary or desirable to carry out the purposes of this Agreement, each of the Parties hereto will take such further action (including the execution and delivery of such further instruments and documents) as any other Party reasonably may request, all at the sole cost and expense of the requesting party (unless the requesting party is entitled to indemnification under this Agreement). The Seller acknowledges and agrees that, from and after the Closing, the Buyer will be entitled to possession of all documents, books, records (including Tax records), agreements, and financial data of any sort relating to Inti, and shall instruct Inti to provide such documentation to Buyer.
 

 (b)   Transition. Seller will not take any action that is designed or intended to have the effect of discouraging any lessor, licensor, customer, supplier, or other business associate of the Inti from maintaining the same business relationships with Inti after the Closing as it maintained with Inti prior to the Closing
  
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            SECTION 8. Expenses
 

 10.1   Each Party shall pay their own expenses associated with the transactions contemplated hereby, including without limitation, all fees and expenses of agents, representatives, counsel, accountants and consultants.
 

 SECTION 10. General
 

 10.2  Entire Agreement. This Agreement constitutes the entire agreement among the Parties hereto, and no party hereto shall be bound by any communications between them on the subject matter hereof unless such communications are in writing and bear a date contemporaneous with, or subsequent to, the date hereof.
  
 
 10.3  Successors and Assigns. This Agreement shall be binding upon the Parties hereto, their heirs, personal representatives, successors and assigns.
 

 10.4  Execution of Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same document.
 

 10.5  Notices. All notices, requests, demands, claims, and other communications hereunder must be in writing. Any notice, request, demand, claim, or other communication hereunder shall be deemed duly given when sent if it is sent by registered or certified mail, return receipt requested, postage prepaid, and addressed to the intended recipient as set forth below:
 

 If to the BUYER:
  	
	 Tuscan Capital Ltd.

	 Coney Drive, Suite 404

	 P.O. Box 2071

	 Belize City

	 Belize, Central America

 

 If to SELLER:
  	
	 Sanborn Resources Ltd.

	 777 South Flagler Drive

	 Suite 800 – West Tower

	 West Palm Beach, FL 33401

 

 Any party may send any notice, request, demand, claim, or other communication hereunder to the intended recipient at the address set forth above using any other means (including personal delivery, expedited courier, messenger service, facsimile, ordinary mail, or electronic mail), but no such notice, request, demand, claim, or other communication shall be deemed to have been duly given unless and until it actually is received by the intended recipient. Any party may change the address to which notices, requests, demands, claims, and other communications hereunder are to be delivered by giving the other parties notice in the manner herein set forth.
 

 10.6  Governing Law; Jurisdiction; Service of Process. This Agreement shall be governed by the internal laws of the State of Nevada. The parties hereby consent to process being served in any action by delivery via Federal Express or any other nationally recognized overnight courier.
 

 10.7  Amendments and Waivers. No amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by the parties hereto. No waiver by any party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.
 

 10.8  Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction.
 

 10.9  Interpretation. Each Party has been represented by legal counsel in connection with the negotiation of the transactions in this Agreement contemplated and the drafting and negotiation of this Agreement. Each Party and its legal counsel have had an opportunity to review and suggest revisions to the language of this Agreement. Accordingly, no provision of this Agreement shall be construed for or against or interpreted to the benefit or disadvantage of any Party by reason of any Party having or being deemed to have structured or drafted such provision.
 

 10.10 Appendices, Schedules and Exhibits. All references in this Agreement to exhibits and schedules shall, unless otherwise expressly provided, be deemed to be references to the appendices, exhibits and schedules attached to this Agreement. All such appendices, exhibits and schedules attached to this Agreement are incorporated into this Agreement as though fully set forth in this Agreement.
 

 [Signatures to follow on the next page.]
  
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 IN WITNESS WHEREOF, each of the Parties has executed this Agreement as of the date first set forth above.
 

  	
	 “BUYER”
 TUSCAN CAPITAL LTD.

	 
 
 By: /s/Aaliyah Whittaker
Name: Aaliyah Whittaker

 Title: President
  
 
 
  

  
  	
	 “SELLER”
 SANBORN RESOURCES LTD.

	 
 
 By: /s/ Kristian Andresen
 Name: Krisitan Andresen
 Title: CEO 

	 

  
  
 Schedule 2.2
  
 Promissory Notes
 

  1.

 Promissory Note with Miramar Investors, Inc. in the amount of $50,000, at 16% per annum, dated October 10, 2012
  2.

 Promissory Note with Bay Capital Ltd. in the amount of $50,000, at 16% per annum, dated January 1, 2013
  3.

 Promissory Note with Bay Capital Ltd. in the amount of $50,000, at 16% per annum, dated February 26, 2013
  4.

 Promissory Note with Tuscan Capital Ltd. in the amount of $775,000, at 8% per annum, dated April 10, 2013
  5.

 Promissory Note with Tuscan Capital Ltd. in the amount of $90,000, at 16% per annum, dated June 13, 2013
  6.

 Promissory Note with Tuscan Capital Ltd. in the amount of $50,000, at 16% per annum, dated July 31, 2013
  
  	 7exe4-1_122013.htm

Exhibit 4.1

 

 

 

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.  THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OR TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL, INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

  

  

  

 

HEWLETT-PACKARD COMPANY

2.750% Global Notes due January 14, 2019

No. R-FX19-                                            $                         

CUSIP No. 428236BY8

Hewlett-Packard Company, a corporation duly organized and existing under the laws of Delaware (herein called the “Company,” which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of                   Dollars ($                   ) or such other amount indicated on the Schedule of Exchange of Global Notes attached hereto on January 14, 2019 (if such date is not a Business Day, payment of principal, premium, if any, and interest for the Securities will be paid on the next Business Day); provided, however, that no interest on that payment will accrue from and after January 14, 2019, and to pay interest thereon from January 14, 2014, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on January 14 and July 14 in each year, commencing July 14, 2014, at the rate of 2.750% per annum, until the principal hereof is paid or made available for payment.  The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the fifteenth day (whether or not a Business Day), next preceding such Interest Payment Date.  Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture.  Interest on the Security shall be computed on the basis of a 360-day year of twelve 30-day months, and for any period shorter than a full six-month interest period, on the basis of the actual days elapsed in such period.

 

So long as all of the Securities of this series are represented by Global Securities, the principal of, premium, if any, and interest, if any, on this Global Security shall be paid in same day funds to the Depositary, or to such name or entity as is requested by an authorized representative of the Depositary.  If at any time the Securities of this series are no longer represented by the Global Securities and are issued in definitive form (“Certificated Securities”), then the principal of, premium, if any, and interest, if any, on each Certificated Security at Maturity shall be paid to the Holder upon surrender of such Certificated Security at the office or agency maintained by the Company in the Borough of Manhattan, The City of New York (which shall initially be the principal 

 

 

 

 

 

 

 

corporate trust office of The Bank of New York Mellon Trust Company, N.A., as Trustee) or at such other place or places as may be designated in or pursuant to the Indenture, provided that such Certificated Security is surrendered to the Trustee, acting as Paying Agent, in time for the Paying Agent to make such payments in such funds in accordance with its normal procedures.  Payments of interest with respect to Certificated Securities other than at Maturity may, at the option of the Company, be made by check mailed to the address of the Person entitled thereto as it appears on the Security Register on the relevant Regular or Special Record Date or by wire transfer in same day funds to such account as may have been appropriately designated to the Paying Agent by such Person in writing not later than such relevant Regular or Special Record Date.

 

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

 

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

  

  

  

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

 

 

	 	HEWLETT-PACKARD COMPANY	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Todd R. Morgenfeld 	 
	 	 	Senior Vice President and Treasurer 	 
	 	 	 	 
	Attest:	 	 	 	 	 
	 	Rishi Varma 	 	 	 
	 	Senior Vice President, Deputy General Counsel 	 	 	 
	 	and Assistant Secretary 	 	 	 
	 	 	 	 

Trustee's Certificate of Authentication.

 

This is one of the Securities of the series designated

herein referred to in the within-mentioned Indenture.

 

Dated:

 

THE BANK OF NEW YORK MELLON

TRUST COMPANY, N.A., as Trustee

 

	By:	 	 	 	 	 
	 	Authorized Signatory	 	 	 
	 	 	 	 

 

  

  

  

Reverse of Security

 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of June 1, 2000 (herein called the “Indenture,” which term shall have the meaning assigned to it in such instrument), between the Company and The Bank of New York Mellon Trust Company, N.A. (as successor to The Bank of New York Trust Company, N.A., as successor to J.P. Morgan Trust Company, National Association, as successor to Chase Manhattan Bank and Trust Company, National Association), as trustee (herein called the “Trustee,” which term includes any successor Trustee under the Indenture), and reference is hereby made to the Indenture and all indentures supplemental thereto for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered.  This Security is one of the series designated on the face hereof initially limited in aggregate principal amount to $1,250,000,000.

 

The Company will have the right to redeem the Securities, in whole or in part on at least 30 days’ but no more than 60 days’ prior written notice mailed to the registered Holders of the Securities to be redeemed.  The Redemption Price will be equal to the greater of (1) 100% of the principal amount of the Securities to be redeemed and (2) the sum, as determined by the Company based on the Reference Treasury Dealer Quotations, of the present value of the principal amount of the Securities to be redeemed and the remaining scheduled payments of interest thereon from the Redemption Date to the Maturity Date (the “Remaining Life”) (not including any portion of such payments of interest accrued as of the Redemption Date) discounted from the scheduled payment dates to the Redemption Date on a semi-annual basis at the treasury rate plus 20 basis points, plus accrued and unpaid interest on the principal amount being redeemed to, but excluding, the Redemption Date.

 

If money sufficient to pay the Redemption Price of and accrued interest on the Securities (or portions thereof) to be redeemed on the Redemption Date is deposited with the Trustee or Paying Agent on or before the Redemption Date and the conditions set forth in Article 11 of the Indenture are satisfied, then on and after the Redemption Date, interest will cease to accrue on such Securities (or such portion thereof) called for redemption and such Securities will cease to be outstanding.  If any Redemption Date is not a Business Day, the Company will pay the Redemption Price on the next Business Day without any interest or other payment due to the delay.

 

If fewer than all of the Securities of a series are to be redeemed, the Trustee will select the Securities of such series for redemption on a pro rata basis, by lot or by such other method as the Trustee deems appropriate and fair.  No Securities of $1,000 or less will be redeemed in part.

 

Unless the Company defaults in the payment of the Redemption Price, no interest will accrue on the Securities called for redemption for the period from and after the Redemption Date.

 

 

 

 

 

 

In the event of redemption of this Security in part only, a new Security or Securities of this series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof.

 

“Comparable Treasury Issue” means the United States Treasury security selected by a Reference Treasury Dealer appointed by the Company as having a maturity comparable to the Remaining Life that would be utilized, at the time of selection, and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity with the Remaining Life.

 

“Comparable Treasury Price” means, with respect to any redemption date, the average of three Reference Treasury Dealer Quotations for such redemption date.

 

“Reference Treasury Dealer” means each of BNP Paribas Securities Corp., Merrill Lynch, Pierce, Fenner & Smith Incorporated, RBS Securities Inc. and Wells Fargo Securities, LLC and their respective successors; provided, however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in the United States (a Primary Treasury Dealer), the Company shall substitute therefor another Primary Treasury Dealer.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company by each Reference Treasury Dealer at 5:00 p.m., New York City time, on the third business day preceding the redemption date; provided that if three such quotations cannot reasonably be obtained by the Company, but if two such quotations are obtained, then the average of the two quotations shall be used, and if only one such quotation can reasonably be obtained by the Company, then one quotation shall be used.

 

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

 

The Indenture contains provisions, which will apply to the Securities, for defeasance and covenant defeasance and Events of Default with respect to this Security, in each case upon compliance with certain conditions set forth in the Indenture.

 

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

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the 

 

 

 

 

 

 

Trustee with the consent of the Holders of more than 50% in aggregate principal amount of the Securities at the time Outstanding of each series to be affected.  The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration or transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

 

As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or Trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to the Securities of this series, the Holders of not less than 25% in principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee reasonable indemnity, and the Trustee shall not have received from the Holders of a majority in principal amount of Securities of this series at the time Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity.  The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein.

 

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

 

The Securities of this series are issuable only in registered form without coupons in denominations of $2,000 and any integral multiples of $1,000 in excess thereof.

 

This Security shall be deemed to be a contract made under the laws of the State of New York, and for all purposes shall be construed in accordance with and governed by the laws of said State, without regard to conflict of laws principles thereof.

 

All terms used in this Security that are defined in the Indenture shall have the meanings assigned to them in the Indenture.

  

  

  

 

 

ASSIGNMENT

	
FOR VALUE RECEIVED the undersigned 

hereby sells, assigns and transfers unto:

	
PLEASE INSERT SOCIAL SECURITY OR 

OTHER IDENTIFYING NUMBER OF 

ASSIGNEE:  ______________________________

	  	  

 

(Please print or typewrite name and address including postal zip code of assignee)

the within Global Security of HEWLETT-PACKARD COMPANY and all rights hereunder, hereby irrevocably constituting and appointing

 

  

	  	
  attorney

	
to transfer said Global Security on the books of the within-named Company, with full power of substitution in the premises.

 

                                                                

 

	 	 	 
	
Dated:

	 	 	 	 	 
	 	 	 
	 	
SIGN HERE

	
NOTICE:  THE SIGNATURE TO THIS

ASSIGNMENT MUST CORRESPOND  

WITH THE NAME AS WRITTEN

UPON THE FACE OF THE WITHIN

INSTRUMENT IN EVERY PARTICULAR,

WITHOUT ALTERATION OR ENLARGEMENT 

OR ANY CHANGE WHATEVER.

	 	 	 	 
	 	 	SIGNATURE GUARANTEED	 
	 	 	 	 

 

 

  

  

  

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE

 

The following increases or decreases in this Global Note have been made:

	

Date

	

Amount of Decrease in

Principal Amount of

this Global Note

	

Amount of Increase in

Principal Amount of

this Global Note

	

Principal Amount of

this Global Note

Following Such

Decrease or Increase

	

Signature of

Authorized Signatory

of Trustee or Notes

Custodian

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