Document:

AGREEMENT AND PLAN OF MERGER

BY AND AMONG

SWORDFISH FINANCIAL, INC.

AND

SoOum Corp

Dated September 25, 2014

 

TABLE OF CONTENTS

ARTICLE I:  THE MERGER

1.1

The Merger.

i

1.2

Conversion of  Shares.

2

1.3

Dissenters’ Rights.

4

1.4

Subsequent Actions.

4

ARTICLE II:  THE CLOSING

2.1

Closing Date.

5

2.2

Closing Transactions.

5

ARTICLE III:  REPRESENTATIONS AND WARRANTIES OF SFI AND THE SOOUM SHAREHOLDERS

3.1

Organization and Qualification.

6

3.2

Authorization; Validity and Effect of Agreement.

7

3.3

SFI Subsidiaries.

7

3.4

No Conflict; Required Filings and Consents.

7

3.5

Capitalization.

7

3.6

Financial Statements.

8

3.7

Properties and Assets.

8

3.8

Intellectual Property.

8

3.9

No Undisclosed Liabilities.

9

3.10

Related Party Transactions.

10

3.11

Litigation.

10

3.12

Taxes.

10

3.13

Insurance.

10

3.14

Compliance.

11

3.15

Contracts.

11

3.16

Labor Relations.

12

3.17

Environmental Matters.

12

3.18

Absence of Certain Changes or Events.

12

3.19

Investment Intent.

13

3.20

Brokers and Finders Fees.

13

ARTICLE IV:  REPRESENTATIONS AND WARRANTIES OF SOOUM AND ITS SUBSIDIARY

4.1

Organization and Qualification.

13

4.2

Authorization; Validity and Effect of Agreement.

14

4.3

No Conflict; Required Filings and Consents.

14

4.4

Capitalization.

14

4.5

SEC Reports and Financial Statements.

15

4.6

Properties and Assets.

15

4.7

Intellectual Property.

16

i

 

4.8

Litigation.

16

4.9

Taxes.

16

4.10

Insurance.

16

4.11

Compliance.

17

4.12     Environmental Matters.

17

4.13

Absence of Certain Changes.

17

4.14

Brokers and Finders.

18

ARTICLE V:  CERTAIN COVENANTS

5.1

Conduct of Business by SoOum and its Subsidiaries.

18

5.2

Access to Information.

19

5.3

Confidentiality; No Solicitation.

20

5.4

Best Efforts; Consents.

21

5.5

Further Assurances.

21

5.6

Public Announcements.

21

5.7

Notification of Certain Matters.

22

5.8

Financial Statements.

22

5.9

Prohibition on Trading in SFI Securities.

22

5.10

Board of Directors.

22

5.11

SFI Post-Closing Conditions.

23

5.12

Advisory Fee.

23

5.13

Investment Letters.

23

5.14

Transactions in Certain SFI Shares.

23

5.15

Schedules.

23

ARTICLE VI:  CONDITIONS TO CONSUMMATION OF THE MERGER

6.1

Conditions to Obligations of SoOum and its Shareholders.

23

6.2

Conditions to Obligations of SFI.

24

6.3

Other Conditions to Obligations of the Parties.

25

ARTICLE VII: INDEMNIFICATION

7.1

Indemnification by SoOum.

25

7.2

Indemnification Procedures for Third-Party Claim.

26

7.3

Indemnification Procedures for Non-Third Party Claims.

27

7.4

Limitations on Indemnification.

28

7.5

Exclusive Remedy.

28

ARTICLE VIII:  TERMINATION

8.1

Termination.

28

8.2

Procedure and Effect of Termination.

29

ARTICLE IX:  MISCELLANEOUS

9.1

Entire Agreement.

29

ii

 

9.2

Amendment and Modifications.

30

9.3

Extensions and Waivers.

30

9.4

Successors and Assigns.

30

9.5

Survival of Representations, Warranties and Covenants.

30

9.6

Headings; Definitions.

30

9.7

Severability.

31

9.8

Specific Performance.

31
9.9

Notices.

31

9.10

Governing Law.

32

9.11

Arbitration.

32

9.12

Counterparts.

32

9.13

Certain Definitions 

33

iii

 

EXHIBITS

Exhibit 5.12

Form of Advisory Agreement

Exhibit 5.13

Form of Investment Letter

iv

SCHEDULES

Schedule 3.5(a)

Shareholders and Shares

Schedule 3.5(b)

Subsidiaries and Capitalization

Schedule 3.6

Financial Statements

Schedule 3.7

Real Property

Schedule 3.8

Exceptions to Ownership of Intellectual Property 

Schedule 3.9

Undisclosed Liabilities

Schedule 3.11

Litigation

Schedule 3.13

Insurance

Schedule 3.14

Exceptions to Compliance With Governmental Authorities

Schedule 3.15

Material Contracts

Schedule 3.16

Labor Relations

Schedule 3.18

Certain Changes or Events

Schedule 5.1

Exceptions to Conduct of Business in Ordinary Course

v

 

AGREEMENT AND PLAN OF MERGER

THIS AGREEMENT AND PLAN OF MERGER (the "Agreement"), is made and entered into this 25th day of September, 2014, by and among SoOum Corp, a Delaware corporation (“SoOum”), the SoOum Shareholders, Swordfish Financial, Inc., a Minnesota corporation (“SFI”), and SoOum Holding Corporation., a Nevada corporation and wholly owned subsidiary of SFI (“Merger Sub”).  

Recitals

WHEREAS, the Boards of Directors of SoOum, the Merger Sub and SFI, have approved, and deem it advisable and in the best interests of their respective companies and stockholders to consummate a merger of SoOum with and into the Merger Sub (the “Merger”), with the Merger Sub as the surviving corporation in the Merger upon the terms and subject to the conditions set forth in this Agreement; and

WHEREAS, pursuant to the terms of this Agreement, upon consummation of the Merger, the issued and outstanding shares of common stock of SoOum shall have the right to receive approximately 6,786,955 shares of preferred stock, with each such share of preferred stock  convertible into 1,000 shares of common stock and entitled to 1,000 votes per share (“Preferred Stock”), subject to adjustment as provided herein; and

WHEREAS, immediately upon the consummation of the Merger, the holders of the SoOum Shares shall collectively own, on a fully diluted basis, preferred stock of SFI convertible into common stock of SFI, the total of which represents approximately eighty percent (80%) of all the outstanding common stock  of the then issued and outstanding shares of Common Stock of SFI.

NOW, THEREFORE, in consideration of the following promises and representations, warranties, covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto hereby agree as follows:

 

ARTICLE I

  

  THE MERGER

1.1

The Merger.

(a)

The Merger.  At the Effective Time (as defined in Section 1.1(b)), the Merger shall be effected and SoOum shall be merged with and into the Merger Sub, upon the terms and subject to the conditions set forth in this Agreement and in accordance with the Minnesota Corporation Law (“MCL”) and Delaware General Corporation Law (“DGCL”), whereupon the separate corporate existence of SoOum shall cease and the Merger Sub shall continue as the surviving corporation in the Merger (the “Surviving Corporation”), and as a wholly owned subsidiary of SFI.  

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(b)

 Effective Time.  On the Closing Date (as defined in Section 2.1), the parties shall file a certificate of merger (“Certificate of Merger”) with the Secretary of State of Minnesota and articles of merger (“Articles of Merger”) with the Secretary of State of  Delaware, and make all other filings or recordings required by the MCL and the DGCL in connection with the Merger.  The Merger shall become effective at such time as the Certificate of Merger and Articles of Merger are duly filed with the Secretary of State of Minnesota and Secretary of State of Delaware, respectively, or at such later time as SoOum and SFI shall agree and specify in the Certificate of Merger and Articles of Merger (the time the Merger becomes effective being the “Effective Time”).

(c)

Effects of the Merger.  At the Effective Time, the Merger shall have the effects set forth in this Agreement, the MCL and the DGCL.  Without limiting the foregoing, and subject thereto, at the Effective Time, all of the property, rights, powers, privileges and franchises shall be vested in the Surviving Corporation, and all of the debts, liabilities and duties of SoOum shall become the debts, liabilities and duties of the Merger Sub.

(d)

Articles of Incorporation and Bylaws.

(i)

The Articles of Incorporation of the Merger Sub, as in effect immediately prior to the Effective Time, shall be the Articles of Incorporation of the Surviving Corporation until thereafter amended as provided therein or by applicable law.

(ii)

The Bylaws of the Merger Sub, as in effect immediately prior to the Effective Time, shall be the Bylaws of the Surviving Corporation until thereafter amended as provided therein or by applicable law.

(e)

Officers and Directors.  The Officers of the Surviving Corporation shall be as follows: William Westbrook, CEO, Luis Vega, COO, Ronald Vega, CFO, Steve Mesina, CIO, and Susan Sjo, CSO, and these persons shall hold office in accordance with the Articles of Incorporation and Bylaws of the Surviving Corporation until the earlier of their resignation or removal or until their respective successors are duly elected and qualified, as the case may be.

1.2

Conversion of Shares.

(a)

Conversion of Shares. At the Effective Time, by virtue of the Merger and without any action on the part of the shareholders of SoOum:

(i)

Purchaser Common Stock.  The outstanding shares of SoOum common stock shall be converted into and become 6,768,955 shares of SFI convertible preferred stock, which is in turn convertible into approximately 6,768,955,444 shares of common stock of SFI, validly issued, fully paid and nonassessable.  

(ii)

Cancellation of Treasury Securities and SoOum-Owned Securities.  All Shares that are owned by SFI as treasury securities, all Shares owned by any subsidiary of  SFI, and any Shares owned by SoOum, shall be canceled and retired and shall cease to exist and no consideration shall be delivered in exchange therefor; and  

2

 

(iii)

Conversion of Shares.  All the outstanding SoOum Shares shall be exchanged for preferred stock convertible into 6,768,955,444 shares of SFI common stock in SFI ("SFI Shares”). The SFI shares shall be allocated pro-rata among the SoOum shareholders according to their ownership of SoOum Shares, issued and outstanding on the Closing Date.  All such SoOum Shares, when so converted, shall no longer be outstanding and shall automatically be canceled and retired and shall cease to exist, and each holder of a certificate or agreement representing any such SoOum Share shall cease to have any rights with respect thereto, except the right to receive SFI Shares therefor upon the surrender of such certificate in accordance with Section 1.2(b) hereof, without interest or dividends.

(b)

Exchange of Certificates or Agreements.  Each SoOum Shareholder shall deliver to SFI any certificate or agreement evidencing a SoOum Share and receive in exchange therefore the SFI Shares to be received in connection with the Merger as provided in Section 1.2(a)(iii). If, after the Effective Time, certificates or agreements for the SoOum Shares that were outstanding immediately prior to the Effective Time shall be delivered to SFI, such SoOum Shares shall be exchanged for SFI Shares to be received in connection with the Merger as provided in Section 1.2(a)(iii).

(c)

Distributions With Respect to Unexchanged Shares.  No dividends or other distributions with respect to SFI Shares with a record date before the Effective Time shall be paid to the holder of any unsurrendered certificate or agreement with respect to the SFI Shares represented thereby, and no cash payment in lieu of fractional Shares shall be paid to any such holder. 

(d)

No Further Ownership Rights in SoOum Shares.  From and after the Effective Time, the holders of certificates or agreements evidencing ownership of SoOum Shares outstanding immediately prior to the Effective Time shall cease to have any rights with respect to such SoOum Shares, except as otherwise provided for herein or by applicable law.

(e)

No Fractional Shares.

No certificates or scrip representing fractional SFI Shares shall be issued upon the surrender for exchange of certificates or agreements representing SoOum Shares, no dividend or distribution of SFI shall relate to such fractional interests and such fractional interests will not entitle the owner thereof to vote or to any rights of a shareholder of SFI.  Each shareholder of SoOum who would otherwise have been entitled to receive a fraction of a SFI Share (after taking into account all certificates and agreements delivered by such shareholder), shall receive that number of SFI Shares that such Shareholder would have received if such fractional SFI Shares were rounded up to the nearest whole number.

(f)

Lost, Stolen or Destroyed Certificates or Agreements.  In the event any certificate(s) or agreements shall have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the person claiming such certificate(s) or agreements to be lost, stolen or destroyed and, if required by SFI, the posting by such person of a bond in such reasonable amount as SFI may direct as indemnity against any claim that may be made against it with respect to such certificate or agreement, SFI will issue in exchange for such lost, stolen or destroyed certificate or agreement the SFI Shares to which such person is entitled pursuant to this Agreement.

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(g)

Transfer Books.  The SoOum Share transfer books shall be closed immediately at the Effective Time and thereafter there shall be no further registration of transfers of SoOum Shares on the records of SoOum.  If, after the Effective Time, certificates or agreements are presented to the Surviving Corporation for any reason, they shall be cancelled and exchanged as provided in this Article 1.

 

1.3

Dissenters’ Rights.

Notwithstanding any provision of this Agreement to the contrary, any SoOum Shares that are issued and outstanding immediately prior to the Effective Time and that are held by a SoOum Shareholder that has not voted in favor of the Merger or consented thereto in writing and who has properly delivered a written notice of demand for appraisal of such Shares in accordance with the DGCL, if such Law provides for appraisal rights for such Shares in the Merger (the “Dissenting Shares”), shall not be converted into the right to receive SFI Shares unless and until such shareholder fails to perfect or effectively withdraws or loses its right to appraisal and payment under DGCL.  If, after the Effective Time, any such SoOum Shareholder fails to perfect or effectively withdraws or loses its right to appraisal, such Dissenting SoOum Shares shall thereupon be treated as if they had been converted as of the Effective Time into the right to receive the SFI Shares to which such Shareholder is entitled, without interest or dividends thereon.  SoOum shall give SFI (i) prompt notice of any notice or demands for appraisal or payment for Shares received by SoOum and (ii) the opportunity to participate in and direct all negotiations and proceedings with respect to any such demands or notices.  SoOum shall not, without the prior written consent of SFI, make any payment with respect to, or settle, offer to settle or otherwise negotiate, any such demands.  Any amounts paid to holders of Dissenting SoOum Shares in an appraisal proceeding shall be paid by the Surviving Corporation out of its own funds and will not be paid, directly or indirectly, by SoOum.  Each Dissenting SoOum Share, if any, shall be canceled after payment in respect thereof has been made to the holder thereof pursuant to the DGCL.  At the Effective Time, any holder of Dissenting SoOum Shares shall cease to have any rights with respect thereto except the rights provided by the DGCL or as otherwise provided in this Section 1.3.

1.4

Subsequent Actions.

If, at any time after the Effective Time, the Surviving Corporation shall determine, in its sole discretion, or shall be advised, that any deeds, bills of sale, assignments, assurances or any other actions or things are necessary or desirable to vest, perfect or confirm of record or otherwise in the Surviving Corporation its right, title or interest in, to or under any of the property, rights, powers, privileges, franchises or other assets of SoOum acquired or to be acquired by the Surviving Corporation as a result of, or in connection with, the Merger or otherwise to carry out this Agreement, then an authorized agent of the Surviving Corporation shall be authorized to execute and deliver, and shall execute and deliver, in the name and on behalf of either SFI, the Merger Sub or SoOum, all such deeds, bills of sale, assignments, assurances and to take and do, in the name and on behalf of each such corporation or otherwise, all such other actions and things as may be necessary or desirable to vest, perfect or confirm any and all right, title or interest in, to and under such property, rights, powers, privileges, franchises or other assets in the Surviving Corporation or otherwise to carry out the transactions contemplated by this Agreement.

4

 

 

ARTICLE II

THE CLOSING

2.1

Closing Date.

Subject to satisfaction or waiver of all conditions precedent set forth in Article VI of this Agreement, the closing of the Merger (the "Closing") shall take place on or before September 15, 2014, at the offices of Jones & Haley, P.C. at 10:00 a.m., local time; or (b) at such other time, date and place as the parties may agree, but in no event shall such date be later than October 1, 2014, unless such date is extended by the requirements of law or the mutual agreement of the parties.

2.2

Closing Transactions.

At the Closing, the following transactions shall occur, all of such transactions being deemed to occur simultaneously:

(a)

SoOum shall deliver or cause to be delivered to Swordfish Financial, Inc. and the Merger Sub. (referred to collectively and sometimes hereinafter as the “SFI Group”) the following documents and/or shall take the following actions:

(i)

Certificates or agreements evidencing all of the SoOum Shares;

(ii)

Any outstanding agreements relating to the SoOum Shares;

(iii)

The certificate described in Section 6.2(c);

(iv)

An incumbency certificate signed by an authorized officer of SoOum dated at or about the Closing Date;

(v)

A Certificate of Good Standing from the Secretary of State of the State of Delaware, dated at or about the Closing Date, to the effect that SoOum is in good standing under the laws of the State of Delaware;

(vi)

Articles of Incorporation of SoOum certified by the Secretary of State of Delaware at or about the Closing Date and Bylaws of SoOum certified by an authorized officer of SoOum at or about the Closing Date; 

(vii)

Shareholder Resolutions of SoOum dated at or about the Closing Date authorizing the merger, certified by an authorized officer of SoOum; and

(viii)

The investment letters described in Section 5.13.

5

 

(ix) 

Resolutions of the Board of Directors of SoOum authorizing the merger dated at or about the Closing Date.

(b)

The SFI Group shall deliver or cause to be delivered to SoOum the following documents and shall take the following actions:

(i)

Certificates or agreements evidencing all of the SFI shares;

(ii)

The certificates described in Section 6.1(c);

(iii)

An incumbency certificate signed by all of the executive officers of SFI dated at or about the Closing Date;

(iv)

A Certificate of Good Standing from the Secretary of State of Minnesota, dated at or about the Closing Date, to the effect that SFI is in good standing under the laws of said state; and

(v)

Board Resolutions of SFI dated at or about the Closing Date authorizing the acquisition, certified by the Secretary of SFI; and

(c)

Each of the parties to this Agreement shall have otherwise executed whatever documents and agreements, provided whatever consents and approvals, and shall have taken all such other actions as are required under this Agreement.

 

ARTICLE III

   

  REPRESENTATIONS AND WARRANTIES OF SOOUM 

AND THE SOOUM SHAREHOLDERS 

SoOum and the SoOum Shareholders hereby make the following representations and warranties to SFI and the Merger Sub:

3.1

Organization and Qualification.

SoOum is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, with the corporate power and authority to own and operate its businesses as presently conducted, except where the failure to be or have any of the foregoing would not have a Material Adverse Effect.  SoOum is duly qualified as a foreign corporation or other entity to do business and is in good standing in each jurisdiction where the character of its properties owned or held under lease or the nature of its activities makes such qualification necessary, except for such failures to be so qualified or in good standing as would not, individually or in the aggregate, have a Material Adverse Effect.  SoOum has previously furnished to SFI true, correct and complete copies of the Articles of Incorporation and Bylaws of SoOum, as amended to date.    

6

 

3.2

Authorization; Validity and Effect of Agreement.  

SoOum has the requisite corporate power and authority to execute, deliver and perform its obligations under this Agreement and to consummate the Merger.  The execution and delivery of this Agreement by SoOum and the performance by SoOum of its obligations hereunder and the consummation of the Merger have been duly authorized by its Shareholders and all other necessary corporate action on the part of SoOum and no other SoOum proceedings on the part of SoOum are necessary to authorize this Agreement and the Merger.  This Agreement has been duly and validly executed and delivered by SoOum and, assuming that it has been duly authorized, executed and delivered by the other parties hereto, constitutes a legal, valid and binding obligation of SoOum, enforceable against it in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing.      

3.3

SoOum Subsidiaries.

SoOum has no subsidiaries.  

3.4

No Conflict; Required Filings and Consents.

Neither the execution and delivery of this Agreement by SoOum nor the performance by SoOum of its obligations hereunder, nor the consummation of the Merger, shall: (i) conflict with SoOum’s Certificate of Incorporation or Bylaws; (ii) violate any statute, law, ordinance, rule or regulation applicable to SoOum or its Subsidiary or any of its respective assets or properties; or (iii) violate, breach, be in conflict with or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or permit the termination of any provision of, or result in the termination of, the acceleration of the maturity of, or the acceleration of the performance of any obligation of SoOum or result in the creation or imposition of any liens upon any properties, assets or business of SoOum any material contract or any order, judgment or decree to which SoOum is a party or by which SoOum or any of its respective assets or properties is bound or encumbered except, in the case of clauses (ii) & (iii) for such violations, breaches, conflicts, defaults or other occurrences which, individually or in the aggregate, would not have a Material Adverse Effect.

3.5

Capitalization.  

(a)

Attached hereto as Schedule 3.5(a) is a complete and accurate list of the Shareholders of SoOum and the number and class of issued and outstanding Shares owned by each of them on the date of this Agreement.  The Shares represent all of the outstanding Shares of voting equity interests in SoOum, and all of the Shares have been validly issued and are fully paid and nonassessable.  Except for this Agreement, there are no outstanding options, warrants, agreements, conversion rights, preemptive rights, or other rights to subscribe for, purchase or otherwise acquire any SoOum Shares.  There are no voting trusts or other agreements or understandings to which SoOum is a party with respect to the voting of the Shares, and there is no indebtedness of SoOum having general voting rights issued and outstanding.  Except for this Agreement, there are no outstanding obligations of any person to repurchase, redeem or otherwise acquire outstanding SoOum Shares.  SoOum has no Shares reserved for issuance and no obligation to admit any other person as a Shareholder.

 

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(b)

Attached hereto as Schedule 3.5(b) is a complete and accurate list authorized and outstanding equity interests of the Subsidiary.  All equity interests of the subsidiary outstanding as of the date of this Agreement have been duly authorized and validly issued, are fully paid and nonassessable, and are free of preemptive rights.

 

3.6

Financial Statements.

SoOum has previously furnished to SFI true and complete copies of: (i) SoOum’s December 31, 2013, financial statements (all of such financial statements of SoOum collectively, the “Financial Statements”).  Except as set forth on Schedule 3.6, the Financial Statements (including the Notes thereto) present fairly in all material respects the financial position and results of operations and cash flows of SoOum at the date or for the period set forth therein, in each case in accordance with GAAP applied on a consistent basis throughout the periods involved (except as otherwise indicated therein).  The Financial Statements have been prepared from and in accordance with the books and records of SoOum.

 

3.7

Properties and Assets.

SoOum has good and marketable title to, valid leasehold interests in, or the legal right to use, and hold free and clear of all liens and encumbrances, all of the assets, properties and leasehold interests reflected in the Financial Statements (the “Assets”), except for those sold or otherwise disposed of since the date of the Financial Statements in the ordinary course of business consistent with past practice and not in violation of this Agreement.  All Assets of SoOum that are used in the operations of their respective businesses are in good operating condition and repair, subject to normal wear and tear.  SoOum has delivered to SFI or otherwise made available, correct and complete copies of all leases, subleases and other material agreements or other material instruments relating to all real property used in conducting the businesses of SoOum to which SoOum is a party (collectively, the “Real Property”), all of which are identified on Schedule 3.7.  There are no pending or, to SoOum’s knowledge, threatened condemnation proceedings relating to any of the Real Property.  Except as set forth on Schedule 3.7, none of the real property improvements (including leasehold improvements), equipment and other Assets owned or used by SoOum is subject to any commitment or other arrangement for its sale or use by any affiliate of SoOum or by third parties.  

3.8

Intellectual Property.

(a)

Except as disclosed in Schedule 3.8, (i) SoOum is the owner of the intellectual property free and clear of any royalty or other payment obligation, lien or charge, or have sufficient rights to use such intellectual property under a valid and enforceable license agreement, (ii) there are no agreements that restrict or limit the use of the intellectual property by SoOum and (iii) to the extent that the intellectual property owned or held by SoOum is registered with the applicable authorities, record title to such intellectual property is registered or applied for in the name of SoOum.

8

  

(b)

SoOum’s rights to the intellectual property are valid and enforceable, and the intellectual property and the products and services of SoOum do not infringe upon intellectual property rights of any person or entity in any country.  Except where reasonable business decisions to allow rights to lapse have been made, all maintenance taxes, annuities and renewal fees have been paid and all other necessary actions to maintain the intellectual property rights have been taken through the date hereof.  There exists no impediment that would impair SoOum’s rights to conduct its business after the Effective Time as it relates to the intellectual property.

(c)

SoOum has taken all reasonable and appropriate steps to protect the intellectual property and, where applicable, to preserve the confidentiality of the intellectual property.

(d)

SoOum has not received any notice of claim that any of such intellectual property has expired, is not valid or enforceable in any country or that it infringes upon or conflicts with the intellectual property rights of any third party, and no such claim or infringement or conflict, whenever filed or threatened, currently exists.

(e)

SoOum has not given any notice of infringement to any third party with respect to any of the intellectual property or has become aware of facts or circumstances evidencing the infringement by any third party of any of the intellectual property, and no claim or controversy with respect to any such alleged infringement currently exists.

(f)

The execution, delivery and performance of this Agreement by SoOum and the consummation by SoOum of the Merger will not: (i) constitute a breach by SoOum of any instrument or agreement governing any intellectual property owned by or licensed to SoOum, (ii) pursuant to the terms of any license or agreement relating to any intellectual property, cause the modification of any terms of any such license or agreement, including but not limited to the modification of the effective rate of any royalties or other payments provided for in any such license or agreement, (iii) cause the forfeiture or termination of any intellectual property under the terms thereof, (iv) give rise to a right of forfeiture or termination of any intellectual property under the terms thereof, or (v) impair the right of SoOum, or the Surviving Corporation to make, have made, offer for sale, use, sell, export or license any intellectual property or portion thereof pursuant to the terms thereof.

3.9

No Undisclosed Liabilities.

Except as disclosed in the Financial Statements or Schedule 3.9, SoOum has no material liabilities, indebtedness or obligations, except those that have been incurred in the ordinary course of business, whether known or unknown, absolute, accrued, contingent or otherwise, and whether due or to become due, and to the knowledge of SoOum, there is no existing condition, situation or set of circumstances that could reasonably be expected to result in such a liability, indebtedness or obligation. 

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3.10

Related Party Transactions.

(a)

Except as disclosed in Schedule 3.10, there is no indebtedness between SoOum on the one hand, and any officer, director or affiliate of SoOum on the other hand, other than usual and customary advances made in the ordinary course of business;

(b)

No officer, director or affiliate of SoOum provides or causes to be provided any assets, services (other than services as an officer, director or employee) or facilities to SoOum;

(c)

SoOum does not provide or causes to be provided any assets, services or facilities to any officer, director or affiliate of SoOum (other than as reasonably necessary for them to perform their duties as officers, directors or employees); 

(d)

SoOum does not beneficially own, directly or indirectly, any investment in or issued by any such officer, director or affiliate of SoOum; and

(e)

No officer, director or affiliate of SoOum has any direct or indirect ownership interest in any person with which SoOum competes or has a business relationship other than an ownership interest that represents less than five percent (5%) of the outstanding equity interests in a publicly traded company.

3.11

Litigation.

Except for the matters set forth in Schedule 3.11, there is no action, claim, suit, litigation, proceeding, or governmental investigation (“Action”) instituted, pending or threatened against SoOum that, individually or in the aggregate, directly or indirectly, would be reasonably likely to have a Material Adverse Effect, nor is there any outstanding judgment, decree or injunction, in each case against SoOum that, individually or in the aggregate, has or would be reasonably likely to have a Material Adverse Effect.

3.12

Taxes.

SoOum has timely filed (or has had timely filed on its behalf) with the appropriate tax authorities all tax returns required to be filed by it or on its behalf, and each such tax return was complete and accurate in all material respects, and SoOum has timely paid (or have had paid on its behalf) all material taxes due and owing by it, regardless of whether required to be shown or reported on a tax return, including taxes required to be withheld by it.  No deficiency for a material tax has been asserted in writing or otherwise, against SoOum or with respect to any Assets, except for asserted deficiencies that either (i) have been resolved and paid in full or (ii) are being contested in good faith.  There are no material liens for taxes upon the Assets. 

3.13

Insurance.

Schedule 3.13 sets forth a list of all of SoOum’s key-man life insurance policies and other insurance policies material to the current and proposed business of SoOum.  SoOum maintains insurance covering its assets, 

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business, equipment, properties, operations, employees,officers, directors and managers with such coverage, in such amounts, and with such deductibles and premiums as are consistent with insurance coverage provided for other companies of comparable size and in comparable industries.  All of such policies are in full force and effect and all premiums payable have been paid in full and SoOum is in full compliance with the terms and conditions of such policies.  SoOum has not received any notice from any issuer of such policies of its intention to cancel or refusal to renew any policy issued by it or of its intention to renew any such policy based on a material increase in premium rates other than in the ordinary course of business.  None of such policies are subject to cancellation by virtue of the consummation of the Merger.  There is no claim by SoOum pending under any of such policies as to which coverage has been questioned or denied.

3.14

Compliance.

Except as disclosed on Schedule 3.14, to SoOum’s knowledge, SoOum is in compliance with all foreign, federal, state and local laws and regulations of any governmental authority applicable to its operations or with respect to which compliance is a condition of engaging in the business thereof, except to the extent that failure to comply would not, individually or in the aggregate, have a Material Adverse Effect.  SoOum has not received any notice asserting a failure, or possible failure, to comply with any such law or regulation, the subject of which notice has not been resolved as required thereby or otherwise to the satisfaction of the party sending the notice, except for such failure as would not, individually or in the aggregate, have a Material Adverse Effect.  To SoOum’s knowledge, SoOum holds all permits, licenses and franchises from governmental authorities required to conduct its business as it is now being conducted, except for such failures to have such permits, licenses and franchises that would not, individually or in the aggregate, have a Material Adverse Effect.

3.15

Contracts.

Except as set forth in Schedule 3.15, SoOum is not a party to or bound by any material contract.  The material contracts constitute all of the material agreements and instruments that are necessary and desirable to operate the business as currently conducted by SoOum and as contemplated to be conducted.  True, correct and complete copies of each material contract described and listed on Schedule 3.15 will be made available to SFI within ten (10) business days prior to the Closing.  All of the material contracts are valid, binding and enforceable against the respective parties thereto in accordance with their respective terms.  All parties to all of the material contracts have performed all obligations required to be performed to date under such material contracts, and SoOum to the best of its knowledge, nor any other party, is in default or in arrears under the terms thereof, and no condition exists or event has occurred which, with the giving of notice or lapse of time or both, would constitute a default thereunder.  The consummation of this Agreement and the Merger will not result in an impairment or termination of any of the rights of SoOum under any material Contract.  None of the terms or provisions of any material contract materially and adversely affects the business, prospects, financial condition or results of operations of SoOum.

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3.16

Labor Relations.

Except as described on Schedule 3.16, as of the date of this Agreement (i) there are no activities or proceedings of any labor union to organize any non-unionized employees of SoOum; (ii) there are no unfair labor practice charges and/or complaints pending against SoOum before the National Labor Regulations Board, or any similar foreign labor relations governmental bodies, or any current union representation questions involving employees of SoOum; and (iii) there is no strike, slowdown, work stoppage or lockout, or threat thereof, by or with respect to any employees of SoOum.  As of the date of this Agreement, SoOum is not a party to any collective bargaining agreements.  There are no controversies pending or threatened between SoOum and any of their respective employees, except for such controversies that would not be reasonably likely to have a Material Adverse Effect.

3.17

Environmental Matters.

Except for such matters that, individually or in the aggregate, are not reasonably likely to have a Material Adverse Effect, SoOum (i) has obtained all applicable permits, licenses and other authorizations that are required to be obtained under all applicable environmental laws by SoOum in connection with their respective businesses; (ii) are in compliance with all terms and conditions of such required permits, licenses and authorizations, and with all other limitations, restrictions, conditions, standards, prohibitions, requirements, obligations, schedules and timetables contained in or arising from applicable Environmental Laws in connection with their respective businesses; (iii) have not received notice of any part or present violations of environmental laws in connection with their respective businesses, or of any spill, release, event, incident, condition or action or failure to act in connection with their respective businesses that is reasonably likely to prevent continued compliance with such environmental laws, or which would give rise to any common law environmental liability or liability under environmental laws, or which would otherwise form the basis of any Action against SoOum based on or resulting from the manufacture, processing, use, treatment, storage, disposal, transport, or handling, or the emission, discharge or release into the environment, of any hazardous material by any person in connection with SoOum’s respective businesses; and (iv) have taken all actions required under applicable environmental laws to register any products or materials required to be registered by SoOum thereunder in connection with their respective businesses.    

3.18

Absence of Certain Changes or Events.

Except as set forth on Schedule 3.18 or as otherwise contemplated by this Agreement, since June 1, 2014, (i) there has been no change or development in, or effect on, SoOum that has or could reasonably be expected to have a Material Adverse Effect, (ii) SoOum has not sold, transferred, disposed of, or agreed to sell, transfer or dispose of, any material amount of Assets other than in the ordinary course of business, (iii) SoOum has not paid any dividends or distributed any Assets to any Shareholder, (iv) SoOum has not acquired any material amount of Assets except in the ordinary course of business, nor acquired or merged with any other business, (v) SoOum has not waived or amended any of their respective material contractual rights except in the ordinary course of business, and (vi) SoOum has not entered into any agreement to take any action described in clauses (i) through (v) above.

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3.19

Investment Intent.

The SFI Shares being acquired by the shareholders of SoOum in connection with the Merger are being acquired for the shareholder’s own account for investment purposes only and not with a view to, or with any present intention of, distributing or reselling any of such SoOum Shares.  The Parties acknowledge and agree that the SFI Shares have not been registered under The Securities Act or under any state securities laws, and that the SFI Shares may not be, directly or indirectly, sold, transferred, offered for sale, pledged, hypothecated or otherwise disposed of without registration under The Securities Act and applicable state securities laws, except pursuant to an available exemption from such registration.  The Parties also acknowledge and agree that neither the SEC nor any securities commission or other governmental authority has (a) approved the transfer of the SFI Shares or passed upon or endorsed the merits of the transfer of the SFI Shares, this Agreement or the Merger; or (b) confirmed the accuracy of, determined the adequacy of, or reviewed this Agreement.  The SoOum Shareholders have such knowledge, sophistication and experience in financial, tax and business matters in general, and investments in securities in particular, that they are capable of evaluating the merits and risks of this investment in the SFI Shares, and they have been provided with the information they deem necessary or desirable so as to make an informed investment decision without relying upon SFI for legal or tax advice related to this investment.

3.20

Brokers and Finders Fees.  

SoOum nor any of its officers, directors, or employees have employed any broker or finder or incurred any liability for any investment banking fees, brokerage fees, commissions or finder’s fees in connection with the Merger for which SoOum has or could have any liability.

ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES OF SWORDFISH FINANCIAL, INC.

The SFI Group hereby makes the following representations and warranties to SoOum Corp and the SoOum Shareholders:

4.1

Organization and Qualification.

The SFI Group is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, with the corporate power and authority to own and operate its business as presently conducted, except where the failure to be or have any of the foregoing would not have a Material Adverse Effect.  The SFI Group is duly qualified as a foreign corporation or other entity doing business and is in good standing in each jurisdiction where the character of its properties owned or held under lease or the nature of its activities makes such qualification necessary, except for such failures to be so qualified or in good standing as would not have a Material Adverse Effect.

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4.2

Authorization; Validity and Effect of Agreement.

The SFI Group has the requisite corporate power and authority to execute, deliver and perform its obligations under this Agreement and to consummate the Merger.  The execution and delivery of this Agreement by the SFI Group and the performance of its obligations hereunder and the consummation of the Merger have been duly authorized by its Board of Directors and all other necessary corporate action on the part of the SFI Group and no other corporate proceedings on the part of the SFI Group are necessary to authorize this Agreement and the Merger.  This Agreement has been duly and validly executed and delivered by the SFI Group and, assuming that it has been duly authorized, executed and delivered by the other parties hereto, constitutes a legal, valid and binding obligation of the SFI Group , in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing.

4.3

No Conflict; Required Filings and Consents.

Neither the execution and delivery of this Agreement by the SFI Group nor the performance by the SFI Group of its respective obligations hereunder, nor the consummation of the Merger, will: (i) conflict with the SFI Groups Articles of Incorporation or Bylaws; (ii) violate any statute, law, ordinance, rule or regulation, applicable to the SFI Group or any of the properties or assets of the SFI Group; or (iii) violate, breach, be in conflict with or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or permit the termination of any provision of, or result in the termination of, the acceleration of the maturity of, or the acceleration of the performance of any obligation of the SFI Group or result in the creation or imposition of any lien upon any properties, assets or business of the SFI Group under, any material contract or any order, judgment or decree to which the SFI Group is a party or by which it or any of its assets or properties is bound or encumbered except, in the case of clauses (ii) and (iii), for such violations, breaches, conflicts, defaults or other occurrences which, individually or in the aggregate, would not have a material adverse effect on its obligation to perform its covenants under this Agreement.

4.4

Capitalization. 

(a)

The authorized capital stock of SFI consists of 5,000,000,000 shares of Common Stock at $.0001 par value, and 50,000,000 shares of Preferred Stock at $.0001 par value per share.  There are currently 1,692,238,861 shares of SFI Common Stock and 25,000,000 share of preferred stock issued and outstanding.  All shares of capital stock of SFI outstanding as of the date of this Agreement have been duly authorized and validly issued, are fully paid and nonassessable, and are free of preemptive rights.    

(b)

The authorized capital stock of the Merger Sub consists of 10,000,000 shares of Common Stock at $.0001 par value, and 10,000,000 shares of Preferred Stock at $.0001 par value per share.  As of the closing there will be 1,000,000 shares of the Merger Sub Common Stock issued and outstanding and held by SFI.  There are currently no shares of preferred stock outstanding.  All shares of capital stock of the Merger Sub outstanding as of the date of this Agreement have been duly authorized and validly issued, are fully paid and nonassessable, and are free of preemptive rights.    

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4.5

SEC Reports and Financial Statements.

SFI has filed with the SEC, and has heretofore made available to SoOum true and complete copies of, all forms, reports, schedules, statements and other documents required to be filed by it under The Exchange Act or The Securities Act (as such documents have been amended since the time of their filing, collectively, the “SFI SEC Documents”).  As of their respective dates or, if amended, as of the date of the last such amendment, the SFI SEC Documents, including any financial statements or schedules included therein (i) did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading, and (b) complied in all material respects with the applicable requirements of The Exchange Act and The Securities Act, as the case may be, and the applicable rules and regulations of the SEC thereunder.  Each of the Financial Statements included in the SFI SEC Documents have been prepared from, and are in accordance with, the books and records of SFI, comply in all material respects with applicable accounting requirements and with the published rules and regulations of the SEC with respect thereto, have been prepared in accordance with GAAP applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto) and fairly present the financial positions and the results of operations and cash flows of SFI as of the dates thereof or for the periods presented therein (subject, in the case of unaudited statements, to normal year-end audit adjustments not material in amount).

4.6

Properties and Assets.

The SFI Group has good and marketable title to, valid leasehold interests in, or the legal right to use, and holds free and clear of all liens and encumbrances, all of the assets, properties and leasehold interests reflected in the most recent financial statements contained in the SFI SEC Documents, except for those sold or otherwise disposed of since the date of such financial statements in the ordinary course of business consistent with past practice and not in violation of this Agreement.  All assets of the SFI Group that are used in the operations of its business are in good operating condition and repair, subject to normal wear and tear.  There are no pending or, to the SFI Groups  knowledge, threatened condemnation proceedings relating to any of the real property used in conducting the business of the SFI Group.  None of the real property improvements (including leasehold improvements), equipment and other assets owned or used by the SFI Group is subject to any commitment or other arrangement for their sale or use by any affiliate of the SFI Group, or by third parties.  

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4.7

Intellectual Property.

The SFI Group owns, has a valid license to use, or otherwise possesses legally enforceable rights to use all intellectual property used in its business as currently conducted, except for any such failures to own, license or possess that would not have a Material Adverse Effect.  SFI has not received any notice of infringement of or conflict with, and, to its knowledge, there are no infringements of or conflicts with, the rights of any person with respect to the use of any of SFI’s intellectual property.

4.8

Litigation.

Except for the matters set forth in Schedule 4.8, there is no action, claim, suit, litigation, proceeding, or governmental investigation (“Action”) instituted,  pending or threatened against SFI its affiliates or subsidiaries that, individually or in the aggregate, directly or indirectly, would be reasonably likely to have a Material Adverse Effect, nor is there any outstanding judgment, decree or injunction, in each case against SFI, its affiliates or subsidiaries, that, individually or in the aggregate, has or would be reasonably likely to have a Material Adverse Effect. The SFI Group will indemnify and hold harmless SoOum, its officers and or shareholders for a period of two (2) years from the date of discovery of any such matter, claim or preceding to include those described in Schedule 4.8.

4.9

Taxes.

The SFI Group has timely filed (or has had timely filed on its behalf) with the appropriate tax authorities all tax returns required to be filed by it or on behalf of it, and each such tax return was complete and accurate in all material respects, and the SFI Group has timely paid (or has had paid on its behalf) all material taxes due and owing by it, regardless of whether required to be shown or reported on a tax return, including taxes required to be withheld by it.  No deficiency for a material tax has been asserted in writing or otherwise, to the SFI Group’s knowledge, against the SFI Group or with respect to any of its assets, except for asserted deficiencies that either (i) have been resolved and paid in full or (ii) are being contested in good faith.  There are no material liens for taxes upon the SFI Group’s assets.

4.10

Insurance.

The SFI Group maintains insurance covering its assets, business, equipment, properties, operations, employees, officers, directors and managers with such coverage, in such amounts, and with such deductibles and premiums as are consistent with insurance coverage provided for other companies of comparable size and in comparable industries.  All of such policies are in full force and effect and all premiums payable have been paid in full and the SFI Group is in full compliance with the terms and conditions of such policies.  The SFI Group has not received any notice from any issuer of such policies of its intention to cancel or refusal to renew any policy issued by it or of its intention to renew any such policy based on a material increase in premium rates other than in the ordinary course of business.  None of such policies are subject to cancellation by virtue of the consummation of the Merger.  There is no claim by the SFI Group pending under any of such policies as to which coverage has been questioned or denied.

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4.11

Compliance.

To the SFI Group’s knowledge, the SFI Group is in compliance with all foreign, federal, state and local laws and regulations of any governmental authority applicable to its operations or with respect to which compliance is a condition of engaging in the business thereof, except to the extent that failure to comply would not, individually or in the aggregate, have a Material Adverse Effect.  The SFI Group has not received any notice asserting a failure, or possible failure, to comply with any such law or regulation, the subject of which notice has not been resolved as required thereby or otherwise to the satisfaction of the party sending the notice, except for such failure as would not, individually or in the aggregate, have a Material Adverse Effect.  To the SFI Group knowledge, the SFI Group holds all permits, licenses and franchises from governmental authorities required to conduct its business as it is now being conducted, except for such failures to have such permits, licenses and franchises that would not, individually or in the aggregate, have a Material Adverse Effect.

4.12 

Environmental Matters.

Except for such matters that, individually or in the aggregate, are not reasonably likely to have a Material Adverse Effect, the SFI Group (i) has obtained all applicable permits, licenses and other authorizations that are required to be obtained under all applicable environmental laws by the SFI Group in connection with its business; (ii) is in compliance with all terms and conditions of such required permits, licenses and authorizations, and with all other limitations, restrictions, conditions, standards, prohibitions, requirements, obligations, schedules and timetables contained in or arising from applicable environmental laws in connection with its business; (iii) has not received notice of any part or present violations of environmental laws in connection with its business, or of any spill, release, event, incident, condition or action or failure to act in connection with its business that is reasonably likely to prevent continued compliance with such environmental laws, or which would give rise to any common law environmental liability or liability under environmental laws, or which would otherwise form the basis of any Action against the SFI Group based on or resulting from the manufacture, processing, use, treatment, storage, disposal, transport, or handling, or the emission, discharge or release into the environment, of any hazardous material by any person in connection with the SFI Group’s business; and (iv) has taken all actions required under applicable Environmental Laws to register any products or materials required to be registered by the SFI Group thereunder in connection with its business.

4.13

Absence of Certain Changes.

Since the date of the most recent financial statements contained in the SFI SEC Documents, (i) there has been no change or development in, or effect on, the SFI Group that has or could reasonably be expected to have a Material Adverse Effect, (ii) the SFI Group has not sold, transferred, disposed of, or agreed to sell, transfer or dispose of, any material amount of its assets other than in the ordinary course of business, (iii) the SFI Group has not paid any dividends or distributed any of its assets to any of its shareholders, (iv) the SFI Group has not acquired any material amount of assets except in the ordinary course of business, nor acquired or merged with any other business, (v) the SFI Group has not waived or amended any of its respective material contractual rights except in the ordinary course of business, and (vi) the SFI Group has not entered into any agreement to take any action described in clauses (i) through (v) above.

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4.14

Brokers and Finders.

Except as described in Section 5.12, neither the SFI Group, nor any of its officers, directors, employees or managers, has employed any broker, finder, advisor or consultant, or incurred any liability for any investment banking fees, brokerage fees, commissions or finders’ fees, advisory fees or consulting fees in connection with the Merger for which SFI or its Subsidiary has or could have any liability.

 

ARTICLE V

  

  CERTAIN COVENANTS

5.1

Conduct of Business by SoOum.

(a)

Except (i) as expressly permitted by this Agreement, (ii) as required by applicable law or any Material Contract to which SoOum is a party or by which any Asset is bound, (iii) with the consent of the SFI Group or (iv) as set forth on Schedule 5.1, during the period commencing with the date of this Agreement and continuing until the Closing Date, SoOum shall conduct its business in all material respects in the ordinary and usual course consistent with past practice and use its commercially reasonable efforts to preserve intact its business organization and relationships with third parties and keep available the services of its present officers and employees.

(b)

Without limiting the generality of Section 5.1(a), during the period commencing with the date of this Agreement and continuing until the Closing Date, SoOum shall not:

(i)

adopt or propose any change in their respective certificate of organization, operating agreement or other constitutional documents, except for changes which would not have Material Adverse Effect;

(ii)

(A) issue, authorize or sell its capital stock, (B) issue, authorize or sell any securities convertible into, or options with respect to, or warrants to purchase or rights to subscribe for, any capital stock, (C) split, combine, reclassify or make any other change in their respective issued and outstanding capital stock, (D) redeem, purchase or otherwise acquire any of their respective capital stock, or (E) declare any dividend or make any distribution with respect to their capital stock;

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(iii)

(A) increase in any manner the compensation of, or enter into any new bonus or incentive agreement or arrangement with, any of their respective directors, officers, employees or managers other than increases in compensation in the ordinary course of business and consistent with past practice and that are not material in the aggregate, (B) pay or agree to pay any pension, retirement allowance or other employee benefit to any director, officer, employee or manager, whether past or present, other than as required by applicable law, contracts or plan documents in effect on the date of this Agreement, (C) enter into any new employment, severance, consulting, or other compensation agreement with any director, officer, employee or manager or other person other than in connection with any new hires or promotions in the ordinary course and consistent with past practice, or (D) commit themselves to any additional pension, profit-sharing, deferred compensation, group insurance, severance pay, retirement or other employee benefit plan, fund or similar arrangement, or adopt or amend or commit themselves to adopt or amend any of such plans, funds or similar arrangements in existence on the date hereof;

(iv)

(A) enter into, extend, renew or terminate any Material Contract, or make any change in any Material Contracts, (B) reclassify any assets or liabilities, or (C) do any other act that (x) would cause any representation or warranty of SoOum in this Agreement to be or become untrue in any material respect, or (y) could reasonably be expected to have a Material Adverse Effect;

(v)

(A) sell, transfer, lease or otherwise dispose of any Assets other than in the ordinary course of business consistent with prior practice, (B) create or permit to exist any new lien or encumbrance on any assets (iii) assume, incur or guarantee any obligation for borrowed money other than in the ordinary course of business consistent with past practices, (iv) enter into any joint venture, partnership or other similar arrangement, (v) make any investment in or purchase any securities of any person, (vi) incur any indebtedness, issue or sell any new debt securities, enter into any new credit facility or make any capital expenditures, or (vii) merge or consolidate with any other person or acquire any other person or a business, division or product line of any other person (except as provided for in this Agreement); 

(vi)

make any change in any method of accounting or accounting practice except as required (a) by reason of a concurrent change in law, SEC guidelines or GAAP, or (b) by reason of a change in SoOum’s method of accounting practices that, due to law, SEC guidelines or requirements, or GAAP, requires a change in any method of accounting or accounting practice; or

(vii)

settle or compromise any material Tax liability, make or change any material Tax election, or file any tax return other than a tax return filed in the ordinary course of business and prepared in a manner consistent with past practice;

5.2

Access to Information.

At all times prior to the Closing or the earlier termination of this Agreement and in each case subject to Section 5.3 below, each party hereto shall provide to the other party (and the other party’s authorized 

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 representatives) reasonable access during normal business hours and upon reasonable prior notice to the premises, properties, books, records, assets, liabilities, operations, contracts, personnel, financial information and other data and information of or relating to such party (including without limitation all written proprietary and trade secret information and documents, and other written information and documents relating to intellectual property rights and matters), and will cooperate with the other party in conducting its due diligence investigation of such party, provided that the party granted such access shall not interfere unreasonably with the operation of the business conducted by the party granting access, and provided that no such access need be granted to privileged information or any agreements or documents subject to confidentiality agreements.

5.3

Confidentiality; No Solicitation.

(a)

Confidentiality.  Each party shall hold, and shall cause its respective Affiliates and representatives to hold, all Confidential Information made available to it in connection with the Merger in strict confidence, shall not use such information except for the sole purpose of evaluating the Merger and shall not disseminate or disclose any of such information other than to its directors, officers, managers, employees, shareholders, interest holders, Affiliates, agents and representatives, as applicable, who need to know such information for the sole purpose of evaluating the Merger (each of whom shall be informed in writing by the disclosing party of the confidential nature of such information and directed by such party in writing to treat such information confidentially). If this Agreement is terminated pursuant to the provisions of Article VIII, each party shall immediately return to the other party all such information, all copies thereof and all information prepared by the receiving party based upon the same. The above limitations on use, dissemination and disclosure shall not apply to Confidential Information that (i) is learned by the disclosing party from a third party entitled to disclose it; (ii) becomes known publicly other than through the disclosing party or any third party who received the same from the disclosing party, provided that the disclosing party had no knowledge that the disclosing party was subject to an obligation of confidentiality; (iii) is required by law or court order to be disclosed by the parties; or (iv) is disclosed with the express prior written consent thereto of the other party.  The parties shall undertake all necessary steps to ensure that the secrecy and confidentiality of such information will be maintained in accordance with the provisions of this subsection (a).  Notwithstanding anything contained herein to the contrary, in the event a party is required by court order or subpoena to disclose information which is otherwise deemed to be confidential or subject to the confidentiality obligations hereunder, prior to such disclosure, the disclosing party shall: (i) promptly notify the non-disclosing party and, if having received a court order or subpoena, deliver a copy of the same to the non-disclosing party; (ii) cooperate with the non-disclosing party, at the expense of the non-disclosing party, in obtaining a protective or similar order with respect to such information; and (iii) provide only that amount of information as the disclosing party is advised by its counsel is necessary to strictly comply with such court order or subpoena.

(b)

No Solicitation.  Except as otherwise contemplated in this Agreement, the parties shall not, directly or indirectly, solicit any inquiries or proposals for, or enter into or continue or resume any discussions with respect to or enter into any negotiations or agreements relating to the sale or exchange of all or a substantial part of their assets.  Each party shall promptly notify the other parties if any such proposal or offer, or any inquiry or contact with any Person or entity with respect thereto, is made.   

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5.4

Best Efforts; Consents.

Subject to the terms and conditions herein provided, the parties agree to use all reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to consummate and make effective as promptly as practicable the Merger and to cooperate with the others in connection with the foregoing, including using its reasonable efforts to (i) obtain all waivers, consents and approvals from other parties to loan agreements, leases, mortgages and other contracts necessary for the consummation of the Merger, (ii) make all filings with, and obtain all consents, approvals and authorizations that are required to be obtained from, Governmental Authorities, (iii) lift or rescind any injunction, restraining order, decree or other order adversely affecting the ability of the parties hereto to consummate the Merger, (iv) effect all necessary registrations and filings and submissions of information requested by Governmental Authorities, and (v) fulfill all conditions to this Agreement.  The parties shall use all reasonable efforts to prevent the entry, enactment or promulgation of any threatened or pending preliminary or permanent injunction or other order, decree or ruling or statute, rule, regulation or executive order that would adversely affect the ability of the parties hereto to consummate the Merger. 

5.5

Further Assurances.

Subject to Section 5.4, each of the parties hereto agrees to use their reasonable best efforts before and after the Closing Date to take or cause to be taken all action, to do or cause to be done, and to assist and cooperate with the other party hereto in doing, all things necessary, proper or advisable under applicable laws to consummate and make effective, in the most expeditious manner practicable, the Merger, including, but not limited to: (i) the satisfaction of the conditions precedent to the obligations of any of the parties hereto; (ii) to the extent consistent with the obligations of the parties set forth in Section 5.4, the defending of any lawsuits or other legal proceedings, whether judicial or administrative, challenging this Agreement or the performance of the obligations hereunder; and (iii) the execution and delivery of such instruments, and the taking of such other actions, as the other party hereto may reasonably require in order to carry out the intent of this Agreement.

5.6

Public Announcements.

The parties shall consult with each other before issuing any press release or otherwise making any public statements with respect to the Merger or this Agreement, and they shall not issue any other press release or make any other public statement without prior consent of the other parties, except as may be required by law or, with respect to SFI, by obligations pursuant to rule or regulation of the Exchange Act, the Securities Act, any rule or regulation promulgated thereunder or any rule or regulation of the National Association of Securities Dealers.

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5.7

Notification of Certain Matters.

Each party hereto shall promptly notify the other party in writing of any events, facts or occurrences that would result in any breach of any representation or warranty or breach of any covenant by such party contained in this Agreement.

 

5.8

Financial Statements.

Within forty-five (45) days after the Closing, SoOum shall deliver to the SFI Group the Financial Statements prepared in compliance with GAAP, consistently applied, and in accordance with all applicable SEC rules and regulations, including Regulation S-X promulgated under the Securities Act.  SoOum shall use its best efforts to have its accountant consent to SFI’s use of and reliance on the Financial Statements as may be required in connection with any filings made by SFI under the United States federal securities laws.  

5.9

Prohibition on Trading in SFI  Securities.

SoOum acknowledges that information concerning the matters that are the subject matter of this Agreement may constitute material non-public information under United States federal securities laws, and that United States federal securities laws prohibit any person who has received material non-public information relating to SFI  from purchasing or selling securities of SFI , or from communicating such information to any person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell securities of SFI.  Accordingly, until such time as any such non-public information has been adequately disseminated to the public, SoOum shall not purchase or sell any securities of SFI, or communicate such information to any other person. 

5.10

Board of Directors.  

On or before the Closing, the SFI Group shall take all necessary action to: (i) obtain the resignation of Clark Ortiz as the sole director of the SFI Group, and appoint as directors the following: Susan Sjo, William B. Westbrook, Luis J. Vega, and Ronald Vega to serve as the directors of the Surviving corporation, effective as of the Closing. SFI shall comply with and immediately take all actions, if any, required pursuant to Section 14(f) of the Exchange Act and Rule 14f-1 promulgated thereunder in order to fulfill its obligations under this Section 5.10, including mailing to its shareholders, the information required by such Section 14(f) and Rule 14f-1 as is necessary to enable the individuals noted above to be appointed to the SFI’s Board of Directors (the “Information Statement”). SoOum will supply SFI with all information with respect to, and be solely responsible for all information with respect to, SoOum, and its officers, directors, Manager and Affiliates required by such Section 14(f) and Rule 14f-1.

22

 

5.11

SFI Post-Closing Conditions.  

After the Closing, SFI shall:

(a)

Call and convene a special meeting of its shareholders to seek approval by its shareholders of amendments to its Articles of Incorporation and Bylaws to change its name to a name to be decided upon by SoOum; and

(b)

Make all necessary filings with the SEC to effectuate the same, including the filing of any proxy statement required under the Exchange Act.

5.12

Advisory Fee.  

There shall be no advisory fee paid or owed by any party in connection with the Merger Agreement.  

5.13

Investment Letters.

Prior to Closing, SoOum shall deliver to SFI investment letters substantially in the form attached hereto as Exhibit 5.13 executed by each Shareholder listed on Schedule 3.5(a).

5.14

Transactions in Certain SFI Shares.

For a period of one (1) year after the Closing Date, the SoOum Shareholders acknowledge and agree that while immediately vested in their shares, they shall not transfer any SFI Shares received by them under this Agreement except pursuant to one or more purchase and sale transactions carried out in accordance with the provisions of Rule 144 of the Securities Act.

5.15

Schedules.  

(a)

Each of the parties hereto shall utilize its reasonable best efforts to produce all Schedules required of it under this Agreement as soon as possible after the execution of the Agreement. All such Schedules shall be delivered at least five (5) business days prior to the Closing.  But all schedules shall be produced prior to the closing

 

ARTICLE VI

CONDITIONS TO CONSUMMATION OF THE MERGER

6.1

Conditions to Obligations of SoOum Corp and its Shareholders.

The obligations of SoOum and its shareholders to consummate the Merger shall be subject to the fulfillment, or written waiver by SoOum or its shareholders, at or prior to the Closing, of each of the following conditions:

23

(a)

The representations and warranties of  the SFI Group set out in this Agreement shall be true and correct in all material respects at and as of the time of the Closing as though such representations and warranties were made at and as of such time;

(b)

The SFI Group shall have performed and complied in all material respects with all covenants, conditions, obligations and agreements required by this Agreement to be performed or complied with by the SFI Group on or prior to the Closing Date;

(c)

There shall be delivered to SoOum an officer's certificate of the SFI Group to the effect that the conditions set forth in Section 6.1(a) and (b) have been satisfied; and

(d)

The SFI Group shall have delivered to SoOum any certificates or agreements evidencing the SFI Shares in accordance with Section 2.2(b)(i) & (ii).

(e)

SoOum shall have completed a due diligence review of the business, operations, financial condition and prospects of the SFI Group and shall have been satisfied with the results of its due diligence review in its sole and absolute discretion;

6.2

Conditions to Obligations of the SFI Group.

The obligations of the SFI Group to consummate the Merger shall be subject to the fulfillment, or written waiver by the SFI Group, as the case may be, at or prior to the Closing of each of the following conditions:

(a)

The representations and warranties of SoOum set out in this Agreement shall be true and correct in all material respects at and as of the time of the Closing as though such representations and warranties were made at and as of such time;

(b)

SoOum and the SoOum Shareholders shall have performed and complied in all material respects with all covenants, conditions, obligations and agreements required by this Agreement to be performed or complied with by SoOum or the SoOum Shareholders on or prior to the Closing Date;

(c)

There shall be delivered to the SFI Group an officer’s certificate to the effect that the conditions set forth in Section 6.2(a) and (b) hereof have been satisfied; 

(d)

SoOum shall have delivered to the SFI Group any certificates or agreements evidencing the SoOum Shares in accordance with 2.2(a)(i) & (ii);

(e)

The Financial Statements and records of SoOum shall be of such quality that, in the judgment of the SFI Group, an audit of the Financial Statements can be completed within sixty (60) days after the Closing in accordance with applicable SEC rules and regulations, including Regulation S-X promulgated under the Securities Act; 

(f)

The SFI Group shall have completed a due diligence review of the business, operations, financial condition and prospects of SoOum and shall have been satisfied with the results of its due diligence review in its sole and absolute discretion;

24

 

(g)

The Shareholders of SoOum shall have approved the Merger in accordance with the DGCL; and

(h)

Immediately prior to Closing, the aggregate number of Dissenting Shareholders shall not exceed five percent (5%) of the aggregate number of outstanding Shares.

6.3

Other Conditions to Obligations of the Parties.

The obligations of the parties to consummate the Merger shall be subject to the fulfillment, or written waiver by each of the parties, at or prior to the Closing, of each of the following conditions:

(a)

All director, shareholder, lender, lessor and other parties' consents and approvals, as well as all filings with, and all necessary consents or approvals of, all federal, state and local governmental authorities and agencies, as are required under this Agreement, applicable law or any applicable contract or agreement (other than as contemplated by this Agreement) to complete the Merger shall have been secured; and

(b)

No statute, rule, regulation, executive order, decree, preliminary or permanent injunction, or restraining order shall have been enacted, entered, promulgated or enforced by any Governmental Authority that prohibits or restricts the consummation of the Merger.

ARTICLE VII

INDEMNIFICATION

7.1

Indemnification by SoOum.

For a period of one (1) year after the Closing Date, the SoOum Shareholders shall indemnify and hold harmless the SFI Group and their respective officers and directors (each an “Indemnified Party”), from and against any and all demands, claims, actions or causes of action, judgments, assessments, losses, liabilities, damages or penalties and reasonable attorneys’ fees and related disbursements (collectively, “Claims”) suffered by such Indemnified Party resulting from or arising out of (i) any inaccuracy in or breach of any of the representations or warranties made by SoOum or the SoOum Shareholders at the time they were made, and, except for representations and warranties that speak as of a specific date or time (which need only be true and correct as of such date or time), on and as of the Closing Date, (ii) any breach or non-fulfillment of any covenants or agreements made by SoOum or the SoOum Shareholders, and (iii) any misrepresentation made by SoOum or the SoOum Shareholders, in each case as made herein or in the Schedules or Exhibits annexed hereto or in any closing certificate, schedule or any ancillary certificates or other documents or instruments furnished by SoOum or the SoOum Shareholders pursuant hereto or in connection with the Merger.  

7.2

Indemnification by the SFI Group

25

 

For a period of one (1) year after the Closing Date, the SFI Group shall indemnify and hold harmless SoOum and its respective officers and directors (each an “Indemnified Party”), from and against any and all demands, claims, actions or causes of action, judgments, assessments, losses, liabilities, damages or penalties and reasonable attorneys’ fees and related disbursements (collectively, “Claims”) suffered by such Indemnified Party resulting from or arising out of (i) any current or existing litigation or matter as described in §4.8 herein, (ii) inaccuracy in or breach of any of the representations or warranties made by the SFI Group at the time they were made, and, except for representations and warranties that speak as of a specific date or time (which need only be true and correct as of such date or time), on and as of the Closing Date, (iii) any breach or non-fulfillment of any covenants or agreements made by the SFI Group , and (iv) any misrepresentation made by the SFI Group in each case as made herein or in the Schedules or Exhibits annexed hereto or in any closing certificate, schedule or any ancillary certificates or other documents or instruments furnished by the SFI Group pursuant hereto or in connection with the Merger.

7.3

Indemnification Procedures for Third-Party Claim.  

(a) 

Upon obtaining knowledge of any Claim by a third party which has given rise to, or is expected to give rise to, a claim for indemnification hereunder, the SFI Group shall give written notice (“Notice of Claim”) of such claim or demand to the SoOum Shareholders, specifying in reasonable detail such information as the Indemnified Party may have with respect to such indemnification claim (including copies of any summons, complaint or other pleading which may have been served on it and any written claim, demand, invoice, billing or other document evidencing or asserting the same).  Subject to the limitations set forth in Section 7.2(b) hereof, no failure or delay by the SFI Group in the performance of the foregoing shall reduce or otherwise affect the obligation of the SoOum Shareholders to indemnify and hold the Indemnified Party harmless, except to the extent that such failure or delay shall have actually adversely affected the Shareholder’s ability to defend against, settle or satisfy any Claims for which the Indemnified Party is entitled to indemnification hereunder.

(b)

If the claim or demand set forth in the Notice of Claim given by the SFI Group pursuant to Section 7.2(a) hereof is a claim or demand asserted by a third party, the SoOum Shareholders shall have fifteen (15) days after the date on which Notice of Claim is given to notify the SFI Group in writing of their election to defend such third party claim or demand on behalf of the Indemnified Party.  If the SoOum Shareholders elect to defend such third party claim or demand, the SFI Group shall make available to the SoOum Shareholders and its agents and representatives all records and other materials that are reasonably required in the defense of such third party claim or demand and shall otherwise cooperate with, and assist the SoOum Shareholders in the defense of, such third party claim or demand, and so long as the SoOum Shareholders are defending such third party claim in good faith, the Indemnified Party shall not pay, settle or compromise such third party claim or demand.  If the SoOum Shareholder elects to defend such third party claim or demand, the Indemnified Party shall have the right to participate in the defense of such third party claim or demand, at such Indemnified Party’s own expense.  In the event, however, that such Indemnified Party reasonably determines that representation by counsel to the SoOum Shareholders of both 

26

the SoOum Shareholders and such Indemnified Party could reasonably be expected to present counsel with a conflict of interest, then the Indemnified Party may employ separate counsel to represent or defend them in any such action or proceeding and the SoOum Shareholders will pay the fees and expenses of such counsel.  If the SoOum Shareholders do not elect to defend such third party claim or demand or do not defend such third party claim or demand in good faith, the Indemnified Party shall have the right, in addition to any other right or remedy it may have hereunder, at the SoOum Shareholders’ expense, to defend such third party claim or demand; provided, however, that (i) such Indemnified Party shall not have any obligation to participate in the defense of, or defend, any such third party claim or demand; (ii) such Indemnified Party’s defense of or its participation in the defense of any such third party claim or demand shall not in any way diminish or lessen the obligations of the SoOum Shareholders under the agreements of indemnification set forth in this Article VII; and (iii) such Indemnified Party may not settle any claim without the consent of the SoOum Shareholders, which consent shall not be unreasonably withheld or delayed.

(c)

The parties and the other Indemnified Parties, if any, shall cooperate fully in all aspects of any investigation, defense, pre-trial activities, trial, compromise, settlement or discharge of any claim in respect of which indemnity is sought pursuant to this Article VII, including, but not limited to, by providing the other party with reasonable access to employees and officers (including as witnesses) and other information.  

(d)

Except for third party claims being defended in good faith, the SoOum Shareholders shall satisfy their obligations under this Article VII in respect of a valid claim for indemnification hereunder that is not contested by SoOum in good faith in cash within thirty (30) days after the date on which Notice of Claim is given.

7.4

Indemnification Procedures for Non-Third Party Claims.

In the event any Indemnified Party should have an indemnification claim against the SoOum Shareholders under this Agreement that does not involve a claim by a third party, the Indemnified Party shall promptly deliver notice of such claim to the SoOum Shareholders in writing and in reasonable detail.  The failure by any Indemnified Party to so notify the SoOum Shareholders shall not relieve the SoOum Shareholders from any liability that they may have to such Indemnified Party, except to the extent that SoOum has been actually prejudiced by such failure.  If the SoOum Shareholders do not notify the Indemnified Party within fifteen (15) business days following its receipt of such notice that the SoOum Shareholders dispute such claim, such claim specified by the SoOum Shareholders in such notice shall be conclusively deemed a liability of the Shareholder under this Article VII and the SoOum Shareholders shall pay the amount of such liability to the Indemnified Party on demand, or in the case of any notice in which the amount of the claim is estimated, on such later date when the amount of such claim is finally determined.  If the SoOum Shareholders disputes that liability with respect to such claim in a timely manner, SoOum and the Indemnified Party shall proceed in good faith to negotiate a resolution of such dispute and, if not resolved through negotiations, such dispute shall be submitted to arbitration pursuant to Section 9.11.

27

 

7.5

Limitations on Indemnification.

(a)

In no event shall any claims for indemnification for which the SoOum Shareholders may be liable under this Article VII be payable out of any assets or other property of the SoOum Shareholders other than the SFI Shares received by the SoOum Shareholders pursuant hereto.

(b)

No claim for indemnification under this Article VII shall be asserted by, and no liability for such indemnify shall be enforced against, the SoOum Shareholders to the extent the Indemnified Party has theretofore received indemnification or otherwise been compensated for such Claim.  In the event that an Indemnified Party shall later collect any such amounts recovered under insurance policies with respect to any Claim for which it has previously received payments under this Article VII from the SoOum Shareholders, such Indemnified Party shall promptly repay to the SoOum Shareholders such amount recovered.

7.6

Exclusive Remedy.

The indemnification provisions of this Article VII (i) shall, in the case of the representatives and warranties of SoOum and the SoOum Shareholders, be the exclusive remedy following the Closing with respect to breaches thereof, (ii) shall apply without regard to, and shall not be subject to, any limitation by reason of set-off, limitation or otherwise, except with respect to the limitations set forth in subsection (i) above, and (iii) are intended to be comprehensive and not to be limited by any requirements of law concerning prominence of language or waiver of any legal right under any law (including, without limitation, rights under any workers compensation statute or similar statute conferring immunity from suit).  The obligations of the parties set forth in this Article VII shall be conditioned upon the Closing having occurred.

ARTICLE VIII

TERMINATION

8.1

Termination.

This Agreement may be terminated at any time prior to the Closing:

(a)

by mutual consent of the SFI Group, SoOum and the SoOum Shareholders;

(b)

by the SFI Group, SoOum or the SoOum Shareholders if the Closing shall not have occurred on or before October 1, 2014 (the “Outside Date”); 

(c)

by the SFI Group, SoOum or the SoOum Shareholders if any Governmental Authority shall have issued an injunction, order, decree or ruling or taken any other action restraining, enjoining or otherwise prohibiting any material portion of the Merger and such injunction, order, decree, ruling or other action shall have become final and non-appealable;

28

 

 

(d)

by the SFI Group, SoOum or the SoOum Shareholders upon written notice to the other party if any of the conditions to the Closing set forth in Section 6.3 shall have become incapable of fulfillment by the outside date and shall not have been waived in writing by the SFI Group, SoOum, or the SoOum Shareholders respectively. 

(e)

by the SFI Group upon written notice to SoOum if any of the conditions to the Closing set forth in Section 6.2 shall have become incapable of fulfillment by the outside date and shall not have been waived in writing by the SFI Group; or

(f)

by SoOum and the SoOum Shareholders upon written notice to the SFI Group if any of the conditions to the Closing set forth in Section 6.1 shall have become incapable of fulfillment by the outside date and shall not have been waived in writing by SoOum and the SoOum Shareholders.

8.2

Procedure and Effect of Termination.

In the event of termination of this Agreement pursuant to Section 8.1 hereof, written notice thereof shall forthwith be given by the terminating party to the other party, and, except as set forth below, this Agreement shall terminate and be void and have no effect and the Merger shall be abandoned without any further action by the parties hereto; provided that, if such termination shall result from the failure of a party to perform a covenant, obligation or agreement in this Agreement or from the breach by a party of any representation or warranty contained herein, such party shall be fully liable for any and all damages incurred or suffered by the other party as a result of such failure or breach.  If this Agreement is terminated as provided herein:

(a)

each party hereto shall redeliver, and shall cause its agents (including, without limitation, attorneys and accountants) to redeliver, all documents, work papers and other material of each party hereto relating to the Merger, whether obtained before or after the execution hereof; and

(b)

each party agrees that all Confidential Information received by party with respect to the other party, this Agreement or the Merger shall be kept confidential notwithstanding the termination of this Agreement.

 

ARTICLE IX

  

  MISCELLANEOUS 

9.1

Entire Agreement.

This Agreement and the Schedules and Exhibits hereto contain the entire agreement between the parties and supersede all prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof.  

29

 

9.2

Amendment and Modifications.

This Agreement may not be amended, modified or supplemented except by an instrument or instruments in writing signed by the party against whom enforcement of any such amendment, modification or supplement is sought.

9.3

Extensions and Waivers.

At any time prior to the Closing, the parties hereto entitled to the benefits of a term or provision may (a) extend the time for the performance of any of the obligations or other acts of the parties hereto, (b) waive any inaccuracies in the representations and warranties contained herein or in any document, certificate or writing delivered pursuant hereto, or (c) waive compliance with any obligation, covenant, agreement or condition contained herein.  Any agreement on the part of a party to any such extension or waiver shall be valid only if set forth in an instrument or instruments in writing signed by the party against whom enforcement of any such extension or waiver is sought.  No failure or delay on the part of any party hereto in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty, covenant or agreement.

9.4

Successors and Assigns.

This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, provided, however, that no party hereto may assign its rights or delegate its obligations under this Agreement without the express prior written consent of the other party hereto.  Except as provided in Article VII, nothing in this Agreement is intended to confer upon any person not a party hereto (and their successors and assigns) any rights, remedies, obligations or liabilities under or by reason of this Agreement.

9.5

Survival of Representations, Warranties and Covenants.

The representations and warranties contained herein shall survive the Closing and shall thereupon terminate eighteen (18) months from the Closing, except that (i) the representations contained in Sections 3.1, 3.2, 3.3, 3.5, 3.6, 3.9, 4.1, 4.2, 4.4 and 4.5 shall survive indefinitely, (ii) the representations contained in Section 3.12 and 4.9 shall survive until the expiration of the applicable statute of limitations with respect to the matter at issue, and (iii) the representations contained in Section 3.17 and 4.11 shall survive until the third anniversary of the Closing.  All covenants and agreements contained herein which by their terms contemplate actions following the Closing shall survive the Closing and remain in full force and effect in accordance with their terms.  All other covenants and agreements contained herein shall not survive the Closing and shall thereupon terminate.

9.6

Headings; Definitions.

The Section and Article headings contained in this Agreement are inserted for convenience of reference only and will not affect the meaning or interpretation of this Agreement.  All references to Sections or Articles contained herein mean Sections or Articles of this Agreement unless otherwise stated.  All capitalized terms defined herein are equally applicable to both the singular and plural forms of such terms.

30

9.7

Severability.

If any provision of this Agreement or the application thereof to any Person or circumstance is held to be invalid or unenforceable to any extent, the remainder of this Agreement shall remain in full force and effect and shall be reformed to render the Agreement valid and enforceable while reflecting to the greatest extent permissible the intent of the parties.  

9.8

Specific Performance.

The parties hereto agree that in the event that any party fails to consummate the Merger in accordance with the terms of this Agreement, irreparable damage would occur, no adequate remedy at law would exist and damages would be difficult to determine.  It is accordingly agreed that the parties shall be entitled to specific performance in such event, without the necessity of proving the inadequacy of money damages as a remedy, in addition to any other remedy at law or in equity.

9.9

Notices.

All notices hereunder shall be sufficiently given for all purposes hereunder if in writing and delivered personally, sent by documented overnight delivery service or, to the extent receipt is confirmed, telecopy, telefax or other electronic transmission service to the appropriate address or number as set forth below.

		
	If to SoOum Corp:

c/o William Westbrook, CEO

            SoOum Corp

            P.O. Box 214

            Summit, NJ, 07902

	 

		
	If to Swordfish Financial, Inc. 

            or the Merger Sub:

            Clark Ortiz, CEO

            Swordfish Financial, Inc.

            6125 Airport Freeway; Suite 211 

            Haltom City, Texas 76119

            

            

	with a copy to:

Jones & Haley, P.C.

South Terraces, Suite 170

115 Perimeter Center Place

Atlanta, Georgia 30346-1238

Attention: Richard W. Jones

31

9.10

Governing Law.

This Agreement shall be governed by and construed in accordance with the laws of the State of Texas, without regard to the laws that might otherwise govern under applicable principles of conflicts of laws thereof, except to the extent that the MCL shall apply to the internal corporate governance of SFI the DGCL shall apply to the internal corporate governance of SoOum, or the Nevada Corporate Code shall apply to the internal corporate governance of the Merger Sub.

9.11

Arbitration.

 

If a dispute arises as to the interpretation of this Agreement, it shall be decided in an arbitration proceeding conforming to the Rules of the American Arbitration Association applicable to commercial arbitration then in effect at the time of the dispute.  The arbitration shall take place in the State of Texas. The decision of the Arbitrators shall be conclusively binding upon the parties and final, and such decision shall be enforceable as a judgment in any court of competent jurisdiction. The parties shall share equally the costs of the arbitration.

9.12

Counterparts.

This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same agreement. 

9.13

Certain Definitions.

As used herein:

(a)

"Affiliate" shall have the meanings ascribed to such term in Rule 12b-2 of  the Exchange Act;

(b)

"Business Day" shall mean any day other than a Saturday, Sunday or a day on which federally chartered financial institutions are not open for business in the City of New York, New York.

(c)

“Confidential Information” shall mean the existence and contents of this Agreement and the Schedules and Exhibits hereto, and all proprietary technical, economic, environmental, operational, financial and/or business information or material of one party which, prior to or following the Closing Date, has been disclosed by SoOum, on the one hand, or SFI, on the other hand, in written, oral (including by recording), electronic, or visual form to, or otherwise has come into the possession of, the other;

(d)

“Encumbrances” shall mean any security or other property interest or right, claim, lien, pledge, option, charge, security interest, contingent or conditional sale, or other title claim or retention agreement, interest or other right or claim of third parties, whether perfected or not perfected, voluntarily incurred or arising by operation of law, and including any agreement (other than this Agreement) to grant or submit to any of the foregoing in the future; 

32

 

(e)

"Environmental Law" shall mean any applicable statute, rule, regulation, law, bylaw, ordinance or directive of any Governmental Authority dealing with the pollution or protection of natural resources or the indoor or ambient environment or with the protection of human health or safety;

(f)

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder;

(g)

“GAAP” shall mean United States generally accepted accounting principles as in effect on the date or for the period with respect to which such principles are applied;

(h)

“Governmental Authority” shall mean any nation or government, any state, municipality or other political subdivision thereof and any entity, body, agency, commission or court, whether domestic, foreign or multinational, exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and any executive official thereof;

(i)

“Intellectual Property” shall mean all of SoOum’s: (i) inventions (whether patentable or un-patentable and whether or not reduced to practice), all improvements thereto and all patents, patent applications and patent disclosures, together with all reissuances, continuations, continuations-in-part, revisions, extensions and reexaminations thereof, (b) trademarks, service marks, trade dress, domain names, maskworks, logos, trade names and corporate names, including all goodwill associated therewith and all applications, registrations and renewals in connection therewith, (c) copyrightable works, copyrights and all applications, registrations and renewals in connection therewith, (d) trade secrets and confidential business information (including ideas, research and development, know-how, formulas, compositions, manufacturing and production processes and techniques, technical data, designs, drawings, specifications, customer and supplier lists, pricing and cost information and business and marketing plans and proposals), (e) computer software, together with all translations, adaptations, derivations and combinations thereof (including data and related documentation), (f) all other proprietary rights, and (g) all copies and tangible embodiments thereof (in whatever form or medium);

(j)

"Knowledge" shall mean (i) with respect to an individual, knowledge of a particular fact or other matter, if such individual is aware of such fact or other matter, and (ii) with respect to a Person that is not an individual, knowledge of a particular fact or other matter if any individual who is serving, or who has at any time served, as a director, officer, partner, executor, or trustee of such Person (or in any similar capacity) has, or at any time had, knowledge of such fact or other matter;

(k)

“Liens” shall mean liens, pledges, charges, claims, security interests, purchase agreements, options, title defects, restrictions on transfer or other encumbrances, or any agreements (other than this Agreement) to do any of the foregoing, of any nature whatsoever, whether consensual, statutory or otherwise;

33

 

(l)

"Material Adverse Effect" shall mean any adverse effect on the business, condition (financial or otherwise) or results of operation of the applicable entity and its subsidiaries, if any, which is material to the applicable entity and its subsidiaries, if any, taken as a whole;

(m)

“Material Contract” shall mean any oral, written or implied contracts, agreements, leases, powers of attorney, guaranties, surety arrangements or other commitments, excluding equipment and furniture leases entered into in the ordinary course of business, the liabilities or commitments associated therewith exceed, in the case of SoOum, $5,000 individually or $10,000 in the aggregate, in the case of SFI, $5,000 individually or $10,000 in the aggregate;  

(n)

“Principal Shareholder” is Clark Ortiz, who is a director and owner of shares representing fifty one percent (51%) of the voting rights of all shares outstanding.

(o)

"Person" shall mean any individual, corporation, partnership, association, trust or other entity or organization, including a governmental or political subdivision or any agency or institution thereof;  

(p)

 “SEC” shall mean the Securities and Exchange Commission;

(q) 

“Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder; and

(r)

“SFI Shares” shall mean the shares of common stock of SFI, which are to be transferred to the shareholders of SoOum in the Merger.

(s)

 “SoOum Shareholders” shall mean the majority holders of the outstanding shares of SoOum common stock.

(t)

“Taxes” shall mean all taxes (whether U.S. federal, state, local or non-U.S.) based upon or measured by income and any other tax whatsoever, including, without limitation, gross receipts, profits, sales, levies, imposts, deductions, charges, rates, duties, use, occupation, value added, ad valorem, transfer, franchise, withholding, payroll and social security, employment, excise, stamp duty or property taxes, together with any interest, penalties, charges or fees imposed with respect thereto.

34

 

IN WITNESS WHEREOF, SFI, SoOum and the SoOum Shareholders have caused this Agreement to be signed by their respective officers hereunto duly authorized, all as of the date first written above.

 

SWORDFISH FINANCIAL, INC.

 

By:__________________________________

     Authorized Officer

 

SOOUM CORP

 

By:__________________________________

     Authorized Officer

SOOUM SHAREHOLDERS:

_________________________________

_________________________________

_________________________________

 

MERGER SUB

 

By:__________________________________

    

     Authorized Officer

35Exhibit 4.3

 

CORESITE REALTY CORPORATION

 

INDENTURE

 

Dated as of                          , 20   

 

Trustee

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
PAGE
    
	
 
    	
 
    	
 
    
	
ARTICLE I   DEFINITIONS AND INCORPORATION BY REFERENCE
    	
2
    
	
 
    	
 
    	
 
    
	
Section 1.1
    	
Definitions
    	
2
    
	
 
    	
 
    	
 
    
	
Section 1.2
    	
Other Definitions
    	
4
    
	
 
    	
 
    	
 
    
	
Section 1.3
    	
Incorporation by Reference of   Trust Indenture Act
    	
5
    
	
 
    	
 
    	
 
    
	
Section 1.4
    	
Rules of Construction
    	
5
    
	
 
    	
 
    	
 
    
	
ARTICLE II   THE SECURITIES
    	
5
    
	
 
    	
 
    	
 
    
	
Section 2.1
    	
Issuable in Series
    	
5
    
	
 
    	
 
    	
 
    
	
Section 2.2
    	
Establishment of Terms of   Series of Securities
    	
6
    
	
 
    	
 
    	
 
    
	
Section 2.3
    	
Execution and Authentication
    	
7
    
	
 
    	
 
    	
 
    
	
Section 2.4
    	
Registrar and Paying Agent
    	
8
    
	
 
    	
 
    	
 
    
	
Section 2.5
    	
Paying Agent to Hold Money in   Trust
    	
9
    
	
 
    	
 
    	
 
    
	
Section 2.6
    	
Securityholder Lists
    	
9
    
	
 
    	
 
    	
 
    
	
Section 2.7
    	
Transfer and Exchange
    	
9
    
	
 
    	
 
    	
 
    
	
Section 2.8
    	
Mutilated, Destroyed, Lost and   Stolen Securities
    	
9
    
	
 
    	
 
    	
 
    
	
Section 2.9
    	
Outstanding Securities
    	
10
    
	
 
    	
 
    	
 
    
	
Section 2.10
    	
Treasury   Securities
    	
10
    
	
 
    	
 
    	
 
    
	
Section 2.11
    	
Temporary   Securities
    	
10
    
	
 
    	
 
    	
 
    
	
Section 2.12
    	
Cancellation
    	
11
    
	
 
    	
 
    	
 
    
	
Section 2.13
    	
Defaulted   Interest
    	
11
    
	
 
    	
 
    	
 
    
	
Section 2.14
    	
Global   Securities
    	
11
    
	
 
    	
 
    	
 
    
	
Section 2.15
    	
CUSIP   Numbers
    	
12
    
	
 
    	
 
    	
 
    
	
ARTICLE III   REDEMPTION
    	
12
    
	
 
    	
 
    	
 
    
	
Section 3.1
    	
Notice to Trustee
    	
12
    
	
 
    	
 
    	
 
    
	
Section 3.2
    	
Selection of Securities to be   Redeemed
    	
12
    
	
 
    	
 
    	
 
    
	
Section 3.3
    	
Notice of Redemption
    	
13
    
	
 
    	
 
    	
 
    
	
Section 3.4
    	
Effect of Notice of Redemption
    	
13
    
	
 
    	
 
    	
 
    
	
Section 3.5
    	
Deposit of Redemption Price
    	
13
    
	
 
    	
 
    	
 
    
	
Section 3.6
    	
Securities Redeemed in Part
    	
14
    
	
 
    	
 
    	
 
    
	
ARTICLE IV   COVENANTS
    	
14
    
	
 
    	
 
    	
 
    
	
Section 4.1
    	
Payment of Principal and   Interest
    	
14
    
	
 
    	
 
    	
 
    
	
Section 4.2
    	
SEC Reports
    	
14
    
	
 
    	
 
    	
 
    
	
Section 4.3
    	
Compliance Certificate
    	
14
    
	
 
    	
 
    	
 
    
	
Section 4.4
    	
Stay, Extension and Usury Laws
    	
14
    

 

i

 

	
Section 4.5
    	
Corporate Existence
    	
15
    
	
 
    	
 
    	
 
    
	
ARTICLE V   SUCCESSORS
    	
15
    
	
 
    	
 
    	
 
    
	
Section 5.1
    	
When Company May Merge, Etc.
    	
15
    
	
 
    	
 
    	
 
    
	
Section 5.2
    	
Successor Corporation   Substituted
    	
15
    
	
 
    	
 
    	
 
    
	
ARTICLE VI   DEFAULTS AND REMEDIES
    	
15
    
	
 
    	
 
    	
 
    
	
Section 6.1
    	
Events of Default
    	
15
    
	
 
    	
 
    	
 
    
	
Section 6.2
    	
Acceleration of Maturity;   Rescission and Annulment
    	
16
    
	
 
    	
 
    	
 
    
	
Section 6.3
    	
Collection of Indebtedness and   Suits for Enforcement by Trustee
    	
17
    
	
 
    	
 
    	
 
    
	
Section 6.4
    	
Trustee May File Proofs of   Claim
    	
17
    
	
 
    	
 
    	
 
    
	
Section 6.5
    	
Trustee May Enforce Claims   Without Possession of Securities
    	
18
    
	
 
    	
 
    	
 
    
	
Section 6.6
    	
Application of Money Collected
    	
18
    
	
 
    	
 
    	
 
    
	
Section 6.7
    	
Limitation on Suits
    	
18
    
	
 
    	
 
    	
 
    
	
Section 6.8
    	
Unconditional Right of Holders   to Receive Principal and Interest
    	
19
    
	
 
    	
 
    	
 
    
	
Section 6.9
    	
Restoration of Rights and   Remedies
    	
19
    
	
 
    	
 
    	
 
    
	
Section 6.10
    	
Rights   and Remedies Cumulative
    	
19
    
	
 
    	
 
    	
 
    
	
Section 6.11
    	
Delay   or Omission Not Waiver
    	
19
    
	
 
    	
 
    	
 
    
	
Section 6.12
    	
Control   by Holders
    	
19
    
	
 
    	
 
    	
 
    
	
Section 6.13
    	
Waiver   of Past Defaults
    	
20
    
	
 
    	
 
    	
 
    
	
Section 6.14
    	
Undertaking   for Costs
    	
20
    
	
 
    	
 
    	
 
    
	
ARTICLE VII   TRUSTEE
    	
20
    
	
 
    	
 
    	
 
    
	
Section 7.1
    	
Duties of Trustee
    	
20
    
	
 
    	
 
    	
 
    
	
Section 7.2
    	
Rights of Trustee
    	
21
    
	
 
    	
 
    	
 
    
	
Section 7.3
    	
Individual Rights of Trustee
    	
22
    
	
 
    	
 
    	
 
    
	
Section 7.4
    	
Trustee’s Disclaimer
    	
22
    
	
 
    	
 
    	
 
    
	
Section 7.5
    	
Notice of Defaults
    	
22
    
	
 
    	
 
    	
 
    
	
Section 7.6
    	
Reports by Trustee to Holders
    	
22
    
	
 
    	
 
    	
 
    
	
Section 7.7
    	
Compensation and Indemnity
    	
22
    
	
 
    	
 
    	
 
    
	
Section 7.8
    	
Replacement of Trustee
    	
23
    
	
 
    	
 
    	
 
    
	
Section 7.9
    	
Successor Trustee by Merger, etc.
    	
24
    
	
 
    	
 
    	
 
    
	
Section 7.10
    	
Eligibility;   Disqualification
    	
24
    
	
 
    	
 
    	
 
    
	
Section 7.11
    	
Preferential   Collection of Claims Against Company
    	
24
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII   SATISFACTION AND DISCHARGE; DEFEASANCE
    	
24
    
	
 
    	
 
    	
 
    
	
Section 8.1
    	
Satisfaction and Discharge of   Indenture
    	
24
    
	
 
    	
 
    	
 
    
	
Section 8.2
    	
Application of Trust Funds;   Indemnification
    	
25
    
	
 
    	
 
    	
 
    
	
Section 8.3
    	
Legal Defeasance of Securities   of any Series
    	
25
    
	
 
    	
 
    	
 
    
	
Section 8.4
    	
Covenant Defeasance
    	
26
    

 

ii

 

	
Section 8.5
    	
Repayment to Company
    	
27
    
	
 
    	
 
    	
 
    
	
Section 8.6
    	
Reinstatement
    	
27
    
	
 
    	
 
    	
 
    
	
ARTICLE IX   AMENDMENTS AND WAIVERS
    	
28
    
	
 
    	
 
    	
 
    
	
Section 9.1
    	
Without Consent of Holders
    	
28
    
	
 
    	
 
    	
 
    
	
Section 9.2
    	
With Consent of Holders
    	
28
    
	
 
    	
 
    	
 
    
	
Section 9.3
    	
Limitations
    	
28
    
	
 
    	
 
    	
 
    
	
Section 9.4
    	
Compliance with Trust Indenture   Act
    	
29
    
	
 
    	
 
    	
 
    
	
Section 9.5
    	
Revocation and Effect of   Consents
    	
29
    
	
 
    	
 
    	
 
    
	
Section 9.6
    	
Notation on or Exchange of   Securities
    	
29
    
	
 
    	
 
    	
 
    
	
Section 9.7
    	
Trustee Protected
    	
29
    
	
 
    	
 
    	
 
    
	
ARTICLE X   MISCELLANEOUS
    	
30
    
	
 
    	
 
    	
 
    
	
Section 10.1
    	
Trust   Indenture Act Controls
    	
30
    
	
 
    	
 
    	
 
    
	
Section 10.2
    	
Notices
    	
30
    
	
 
    	
 
    	
 
    
	
Section 10.3
    	
Communication   by Holders with Other Holders
    	
31
    
	
 
    	
 
    	
 
    
	
Section 10.4
    	
Certificate   and Opinion as to Conditions Precedent
    	
31
    
	
 
    	
 
    	
 
    
	
Section 10.5
    	
Statements   Required in Certificate or Opinion
    	
31
    
	
 
    	
 
    	
 
    
	
Section 10.6
    	
Rules by   Trustee and Agents
    	
31
    
	
 
    	
 
    	
 
    
	
Section 10.7
    	
Legal   Holidays
    	
31
    
	
 
    	
 
    	
 
    
	
Section 10.8
    	
No   Recourse Against Others
    	
31
    
	
 
    	
 
    	
 
    
	
Section 10.9
    	
Counterparts
    	
32
    
	
 
    	
 
    	
 
    
	
Section 10.10
    	
Governing   Laws
    	
32
    
	
 
    	
 
    	
 
    
	
Section 10.11
    	
No   Adverse Interpretation of Other Agreements
    	
32
    
	
 
    	
 
    	
 
    
	
Section 10.12
    	
Successors
    	
32
    
	
 
    	
 
    	
 
    
	
Section 10.13
    	
Severability
    	
32
    
	
 
    	
 
    	
 
    
	
Section 10.14
    	
Table   of Contents, Headings, Etc.
    	
32
    
	
 
    	
 
    	
 
    
	
Section 10.15
    	
Securities   in a Foreign Currency
    	
32
    
	
 
    	
 
    	
 
    
	
Section 10.16
    	
Judgment   Currency
    	
33
    
	
 
    	
 
    	
 
    
	
Section 10.17
    	
Force   Majeure
    	
33
    
	
 
    	
 
    	
 
    
	
ARTICLE XI   SINKING FUNDS
    	
33
    
	
 
    	
 
    	
 
    
	
Section 11.1
    	
Applicability   of Article
    	
33
    
	
 
    	
 
    	
 
    
	
Section 11.2
    	
Satisfaction   of Sinking Fund Payments with Securities
    	
34
    
	
 
    	
 
    	
 
    
	
Section 11.3
    	
Redemption   of Securities for Sinking Fund
    	
34
    

 

iii

 

CORESITE REALTY CORPORATION
 Reconciliation and tie between Trust Indenture Act of 1939 and
 Indenture, dated as of                          , 20

 

	
Section 310
    	
 
    	
(a)(1)
    	
 
    	
7.10
    
	
 
    	
 
    	
(a)(2)
    	
 
    	
7.10
    
	
 
    	
 
    	
(a)(3)
    	
 
    	
Not Applicable
    
	
 
    	
 
    	
(a)(4)
    	
 
    	
Not Applicable
    
	
 
    	
 
    	
(a)(5)
    	
 
    	
7.10
    
	
 
    	
 
    	
(b)
    	
 
    	
7.10
    
	
Section 311
    	
 
    	
(a)
    	
 
    	
7.11
    
	
 
    	
 
    	
(b)
    	
 
    	
7.11
    
	
 
    	
 
    	
(c)
    	
 
    	
Not Applicable
    
	
Section 312
    	
 
    	
(a)
    	
 
    	
2.6
    
	
 
    	
 
    	
(b)
    	
 
    	
10.3
    
	
 
    	
 
    	
(c)
    	
 
    	
10.3
    
	
Section 313
    	
 
    	
(a)
    	
 
    	
7.6
    
	
 
    	
 
    	
(b)(1)
    	
 
    	
7.6
    
	
 
    	
 
    	
(b)(2)
    	
 
    	
7.6
    
	
 
    	
 
    	
(c)(1)
    	
 
    	
7.6
    
	
 
    	
 
    	
(d)
    	
 
    	
7.6
    
	
Section 314
    	
 
    	
(a)
    	
 
    	
4.2, 10.5
    
	
 
    	
 
    	
(b)
    	
 
    	
Not Applicable
    
	
 
    	
 
    	
(c)(1)
    	
 
    	
10.4
    
	
 
    	
 
    	
(c)(2)
    	
 
    	
10.4
    
	
 
    	
 
    	
(c)(3)
    	
 
    	
Not Applicable
    
	
 
    	
 
    	
(d)
    	
 
    	
Not Applicable
    
	
 
    	
 
    	
(e)
    	
 
    	
10.5
    
	
 
    	
 
    	
(f)
    	
 
    	
Not Applicable
    
	
Section 315
    	
 
    	
(a)
    	
 
    	
7.1
    
	
 
    	
 
    	
(b)
    	
 
    	
7.5
    
	
 
    	
 
    	
(c)
    	
 
    	
7.1
    
	
 
    	
 
    	
(d)
    	
 
    	
7.1
    
	
 
    	
 
    	
(e)
    	
 
    	
6.14
    
	
Section 316
    	
 
    	
(a)
    	
 
    	
2.10
    
	
 
    	
 
    	
(a)(1)(a)
    	
 
    	
6.12
    
	
 
    	
 
    	
(a)(1)(b)
    	
 
    	
6.13
    
	
 
    	
 
    	
(b)
    	
 
    	
6.8
    
	
Section 317
    	
 
    	
(a)(1)
    	
 
    	
6.3
    
	
 
    	
 
    	
(a)(2)
    	
 
    	
6.4
    
	
 
    	
 
    	
(b)
    	
 
    	
2.5
    
	
Section 318
    	
 
    	
(a)
    	
 
    	
10.1
    

 

Indenture dated as of                      , 20     between CoreSite Realty Corporation, a Maryland corporation (the “Company”) and [                  ], as trustee (the “Trustee”).

 

Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Securities issued under this Indenture.

 

1

 

ARTICLE I
 DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.1                                   Definitions.

 

“Additional Amounts” means any additional amounts which are required hereby or by any Security, under circumstances specified herein or therein, to be paid by the Company in respect of certain taxes imposed on Holders specified herein or therein and which are owing to such Holders.

 

“Affiliate” of any specified person means any other person directly or indirectly controlling or controlled by or under common control with such specified person.  For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such person, whether through the ownership of voting securities or by agreement or otherwise.

 

“Agent” means any Registrar, Paying Agent or Service Agent.

 

“Board of Directors” means the Board of Directors of the Company or any duly authorized committee thereof.

 

“Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been adopted by the Board of Directors or pursuant to authorization by the Board of Directors and to be in full force and effect on the date of the certificate and delivered to the Trustee.

 

“Business Day” means, unless otherwise provided by Board Resolution, Officer’s Certificate or supplemental indenture hereto for a particular Series, any day except a Saturday, Sunday or a legal holiday in The City of New York (or in connection with any payment, the place of payment) on which banking institutions are authorized or required by law, regulation or executive order to close.

 

“Capital Stock” means any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock.

 

“Company” means the party named as such above until a successor replaces it and thereafter means the successor.

 

“Company Order” means a written order signed in the name of the Company by an Officer.

 

“Corporate Trust Office” means the office of the Trustee at which at any particular time its corporate trust business related to this Indenture shall be principally administered.

 

“Default” means any event which is, or after notice or passage of time or both would be, an Event of Default.

 

“Depositary” means, with respect to the Securities of any Series issuable or issued in whole or in part in the form of one or more Global Securities, the person designated as Depositary for such Series by the Company, which Depositary shall be a clearing agency registered under the Exchange Act; and if at any time there is more than one such person, “Depositary” as used with respect to the Securities of any Series shall mean the Depositary with respect to the Securities of such Series.

 

“Discount Security” means any Security that provides for an amount less than the stated principal amount thereof to be due and payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.2.

 

“Dollars” and “$” means the currency of the United States of America.

 

2

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Foreign Currency” means any currency or currency unit issued by a government other than the government of the United States of America.

 

“Foreign Government Obligations” means, with respect to Securities of any Series that are denominated in a Foreign Currency, direct obligations of, or obligations guaranteed by, the government that issued or caused to be issued such currency for the payment of which obligations its full faith and credit is pledged and which are not callable or redeemable at the option of the issuer thereof.

 

“GAAP” means accounting principles generally accepted in the United States of America set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as have been approved by a significant segment of the accounting profession, which are in effect as of the date of determination.

 

“Global Security” or “Global Securities” means a Security or Securities, as the case may be, in the form established pursuant to Section 2.2 evidencing all or part of a Series of Securities, issued to the Depositary for such Series or its nominee, and registered in the name of such Depositary or nominee.

 

“Holder” or “Securityholder” means a person in whose name a Security is registered.

 

“Indenture” means this Indenture as amended or supplemented, from time to time and shall include the form and terms of particular Series of Securities established as contemplated hereunder.

 

“interest” with respect to any Discount Security which by its terms bears interest only after Maturity, means interest payable after Maturity.

 

“Maturity,” when used with respect to any Security, means the date on which the principal of such Security becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise.

 

“Officer” means the Chief Executive Officer, President, the Chief Financial Officer, the Treasurer or any Assistant Treasurer, the Secretary or any Assistant Secretary, and any Vice President of the Company.

 

“Officer’s Certificate” means a certificate signed by any officer.

 

“Opinion of Counsel” means a written opinion of legal counsel who is acceptable to the Trustee.  The counsel may be an employee of or counsel to the Company.

 

“person” means any individual, corporation, partnership, joint venture, association, limited liability company, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.

 

“principal” of a Security means the principal of the Security plus, when appropriate, the premium, if any, on, and any Additional Amounts in respect of, the Security.

 

“Responsible Officer” means any officer of the Trustee in its Corporate Trust Office having responsibility for administration of this Indenture and also means, with respect to a particular corporate trust matter, any other officer to whom any corporate trust matter is referred because of his or her knowledge of and familiarity with a particular subject.

 

“SEC” means the Securities and Exchange Commission.

 

3

 

“Securities” means the debentures, notes or other debt instruments of the Company of any Series authenticated and delivered under this Indenture.

 

“Series” or “Series of Securities” means each series of debentures, notes or other debt instruments of the Company created pursuant to Sections 2.1 and 2.2 hereof.

 

“Stated Maturity” when used with respect to any Security, means the date specified in such Security as the fixed date on which the principal of such Security or interest is due and payable.

 

“Subsidiary” of any specified person means any corporation, association or other business entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by such person or one or more of the other Subsidiaries of that person or a combination thereof.

 

“TIA” means the Trust Indenture Act of 1939 (15 U.S. Code Sections 77aaa-77bbbb) as in effect on the date of this Indenture; provided, however, that in the event the Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the extent required by any such amendment, the Trust Indenture Act as so amended.

 

“Trustee” means the person named as the “Trustee” in the first paragraph of this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean or include each person who is then a Trustee hereunder, and if at any time there is more than one such person, “Trustee” as used with respect to the Securities of any Series shall mean the Trustee with respect to Securities of that Series.

 

“U.S. Government Obligations” means securities which are direct obligations of, or guaranteed by, The United States of America for the payment of which its full faith and credit is pledged and which are not callable or redeemable at the option of the issuer thereof, and shall also include a depository receipt issued by a bank or trust company as custodian with respect to any such U.S. Government Obligation or a specific payment of interest on or principal of any such U.S. Government Obligation held by such custodian for the account of the holder of a depository receipt, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in respect of the U.S. Government Obligation evidenced by such depository receipt.

 

Section 1.2                                   Other Definitions.

 

	
TERM
    	
 
    	
DEFINED IN
   SECTION
    
	
 
    	
 
    	
 
    
	
“Bankruptcy Law”
    	
 
    	
6.1
    
	
 
    	
 
    	
 
    
	
“Custodian”
    	
 
    	
6.1
    
	
 
    	
 
    	
 
    
	
“Event of Default”
    	
 
    	
6.1
    
	
 
    	
 
    	
 
    
	
“Judgment Currency”
    	
 
    	
10.16
    
	
 
    	
 
    	
 
    
	
“Legal Holiday”
    	
 
    	
10.7
    
	
 
    	
 
    	
 
    
	
“mandatory sinking fund payment”
    	
 
    	
11.1
    
	
 
    	
 
    	
 
    
	
“Market Exchange Rate”
    	
 
    	
10.15
    
	
 
    	
 
    	
 
    
	
“New York Banking Day”
    	
 
    	
10.16
    

 

4

 

	
“Notice Agent”
    	
 
    	
2.4
    
	
 
    	
 
    	
 
    
	
“optional sinking fund payment”
    	
 
    	
11.1
    
	
 
    	
 
    	
 
    
	
“Paying Agent”
    	
 
    	
2.4
    
	
 
    	
 
    	
 
    
	
“Registrar”
    	
 
    	
2.4
    
	
 
    	
 
    	
 
    
	
“Required Currency”
    	
 
    	
10.16
    
	
 
    	
 
    	
 
    
	
“successor person”
    	
 
    	
5.1
    

 

Section 1.3                                   Incorporation by Reference of Trust Indenture Act.

 

Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture.  The following TIA terms used in this Indenture have the following meanings:

 

“Commission” means the SEC.

 

“indenture securities” means the Securities.

 

“indenture security holder” means a Securityholder.

 

“indenture to be qualified” means this Indenture.

 

“indenture trustee” or “institutional trustee” means the Trustee.

 

“obligor” on the indenture securities means the Company and any successor obligor upon the Securities.

 

All other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA and not otherwise defined herein are used herein as so defined.

 

Section 1.4                                   Rules of Construction.

 

Unless the context otherwise requires:

 

(a)                                 a term has the meaning assigned to it;

 

(b)                                 an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;

 

(c)                                  “or” is not exclusive;

 

(d)                                 words in the singular include the plural, and in the plural include the singular; and

 

(e)                                  provisions apply to successive events and transactions.

 

ARTICLE II
 THE SECURITIES

 

Section 2.1                                   Issuable in Series.

 

The aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited.  The Securities may be issued in one or more Series.  All Securities of a Series shall be identical except

 

5

 

as may be set forth or determined in the manner provided in a Board Resolution, supplemental indenture or Officer’s Certificate detailing the adoption of the terms thereof pursuant to authority granted under a Board Resolution.  In the case of Securities of a Series to be issued from time to time, the Board Resolution, Officer’s Certificate or supplemental indenture detailing the adoption of the terms thereof pursuant to authority granted under a Board Resolution may provide for the method by which specified terms (such as interest rate, maturity date, record date or date from which interest shall accrue) are to be determined.  Securities may differ between Series in respect of any matters, provided that all Series of Securities shall be equally and ratably entitled to the benefits of the Indenture.

 

Section 2.2                                   Establishment of Terms of Series of Securities.

 

At or prior to the issuance of any Securities within a Series, the following shall be established (as to the Series generally, in the case of Subsection 2.2.1 and either as to such Securities within the Series or as to the Series generally in the case of Subsections 2.2.2 through 2.2.24) by or pursuant to a Board Resolution, and set forth or determined in the manner provided in a Board Resolution, supplemental indenture hereto or Officer’s Certificate:

 

2.2.1 the title (which shall distinguish the Securities of that particular Series from the Securities of any other Series) and ranking (including the terms of any subordination provisions) of the Series;

 

2.2.2 the price or prices (expressed as a percentage of the principal amount thereof) at which the Securities of the Series will be issued;

 

2.2.3 any limit upon the aggregate principal amount of the Securities of the Series which may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the Series pursuant to Section 2.7, 2.8, 2.11, 3.6 or 9.6);

 

2.2.4 the date or dates on which the principal of the Securities of the Series is payable;

 

2.2.5 the rate or rates (which may be fixed or variable) per annum or, if applicable, the method used to determine such rate or rates (including, but not limited to, any commodity, commodity index, stock exchange index or financial index) at which the Securities of the Series shall bear interest, if any, the date or dates from which such interest, if any, shall accrue, the date or dates on which such interest, if any, shall commence and be payable and any regular record date for the interest payable on any interest payment date;

 

2.2.6 the place or places where the principal of and interest, if any, on the Securities of the Series shall be payable, where the Securities of such Series may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company in respect of the Securities of such Series and this Indenture may be delivered, and the method of such payment, if by wire transfer, mail or other means;

 

2.2.7 if applicable, the period or periods within which, the price or prices at which and the terms and conditions upon which the Securities of the Series may be redeemed, in whole or in part, at the option of the Company;

 

2.2.8 the obligation, if any, of the Company to redeem or purchase the Securities of the Series pursuant to any sinking fund or analogous provisions or at the option of a Holder thereof and the period or periods within which, the price or prices at which and the terms and conditions upon which Securities of the Series shall be redeemed or purchased, in whole or in part, pursuant to such obligation;

 

2.2.9 the dates, if any, on which and the price or prices at which the Securities of the Series will be repurchased by the Company at the option of the Holders thereof and other detailed terms and provisions of such repurchase obligations;

 

6

 

2.2.10 if other than denominations of $1,000 and any integral multiple thereof, the denominations in which the Securities of the Series shall be issuable;

 

2.2.11 the forms of the Securities of the Series and whether the Securities will be issuable as Global Securities;

 

2.2.12 if other than the principal amount thereof, the portion of the principal amount of the Securities of the Series that shall be payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.2;

 

2.2.13 the currency of denomination of the Securities of the Series, which may be Dollars or any Foreign Currency, and if such currency of denomination is a composite currency, the agency or organization, if any, responsible for overseeing such composite currency;

 

2.2.14 the designation of the currency, currencies or currency units in which payment of the principal of and interest, if any, on the Securities of the Series will be made;

 

2.2.15 if payments of principal of or interest, if any, on the Securities of the Series are to be made in one or more currencies or currency units other than that or those in which such Securities are denominated, the manner in which the exchange rate with respect to such payments will be determined;

 

2.2.16 the manner in which the amounts of payment of principal of or interest, if any, on the Securities of the Series will be determined, if such amounts may be determined by reference to an index based on a currency or currencies or by reference to a commodity, commodity index, stock exchange index or financial index;

 

2.2.17 the provisions, if any, relating to any security provided for the Securities of the Series;

 

2.2.18 any addition to, deletion of or change in from the Events of Default which applies to any Securities of the Series and any change in the right of the Trustee or the requisite Holders of such Securities to declare the principal amount thereof due and payable pursuant to Section 6.2;

 

2.2.19 any addition to, deletion of or change in the covenants set forth in Articles IV or V which applies to Securities of the Series;

 

2.2.20 any Depositaries, interest rate calculation agents, exchange rate calculation agents or other agents with respect to Securities of such Series if other than those appointed herein;

 

2.2.21 the provisions, if any, relating to conversion or exchange of any Securities of such Series, including if applicable, the conversion or exchange price, the conversion or exchange period, provisions as to whether conversion or exchange will be mandatory, at the option of the Holders thereof or at the option of the Company, the events requiring an adjustment of the conversion or exchange price and provisions affecting conversion or exchange if such Series of Securities are redeemed; and

 

2.2.22 any other terms of the Series (which may supplement, modify or delete any provision of this Indenture insofar as it applies to such Series), including any terms that may be required under applicable law or regulations or advisable in connection with the marketing of Securities of that Series.

 

All Securities of any one Series need not be issued at the same time and may be issued from time to time, consistent with the terms of this Indenture, if so provided by or pursuant to the Board Resolution, supplemental indenture hereto or Officer’s Certificate referred to above.

 

Section 2.3                                   Execution and Authentication.

 

An Officer shall sign the Securities for the Company by manual or facsimile signature.

 

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If an Officer whose signature is on a Security no longer holds that office at the time the Security is authenticated, the Security shall nevertheless be valid.

 

A Security shall not be valid until authenticated by the manual or facsimile signature of the Trustee or an authenticating agent.  The signature shall be conclusive evidence that the Security has been authenticated under this Indenture.

 

The Trustee shall at any time, and from time to time, authenticate Securities for original issue in the principal amount provided in the Board Resolution, supplemental indenture hereto or Officer’s Certificate, upon receipt by the Trustee of a Company Order.  Each Security shall be dated the date of its authentication.

 

The aggregate principal amount of Securities of any Series outstanding at any time may not exceed any limit upon the maximum principal amount for such Series set forth in the Board Resolution, supplemental indenture hereto or Officer’s Certificate delivered pursuant to Section 2.2, except as provided in Section 2.8.

 

Prior to the issuance of Securities of any Series, the Trustee shall have received and (subject to Section 7.2) shall be fully protected in relying on: (a) the Board Resolution, supplemental indenture hereto or Officer’s Certificate establishing the form of the Securities of that Series or of Securities within that Series and the terms of the Securities of that Series or of Securities within that Series, (b) an Officer’s Certificate complying with Section 10.4, and (c) an Opinion of Counsel complying with Section 10.4.

 

The Trustee shall have the right to decline to authenticate and deliver any Securities of such Series: (a) if the Trustee, being advised by counsel, determines that such action may not be taken lawfully; or (b) if the Trustee in good faith by its board of directors or trustees, executive committee or a trust committee of directors and/or vice-presidents or a committee of Responsible Officers shall determine that such action would expose the Trustee to personal liability to Holders of any then outstanding Series of Securities.

 

The Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities.  An authenticating agent may authenticate Securities whenever the Trustee may do so.  Each reference in this Indenture to authentication by the Trustee includes authentication by such agent.  An authenticating agent has the same rights as an Agent to deal with the Company or an Affiliate of the Company.

 

Section 2.4                                   Registrar and Paying Agent.

 

The Company shall maintain, with respect to each Series of Securities, at the place or places specified with respect to such Series pursuant to Section 2.2, an office or agency where Securities of such Series may be presented or surrendered for payment (“Paying Agent”), where Securities of such Series may be surrendered for registration of transfer or exchange (“Registrar”) and where notices and demands to or upon the Company in respect of the Securities of such Series and this Indenture may be delivered (“Notice Agent”).  The Registrar shall keep a register with respect to each Series of Securities and to their transfer and exchange.  The Company will give prompt written notice to the Trustee of the name and address, and any change in the name or address, of each Registrar, Paying Agent or Notice Agent.  If at any time the Company shall fail to maintain any such required Registrar, Paying Agent or Notice Agent or shall fail to furnish the Trustee with the name and address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations, surrenders, notices and demands.

 

The Company may also from time to time designate one or more co-registrars, additional paying agents or additional notice agents and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligations to maintain a Registrar, Paying Agent and Notice Agent in each place so specified pursuant to Section 2.2 for Securities of any Series for such purposes.  The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the name or address of any such co-registrar, additional paying agent or additional notice agent.  The term “Registrar” includes any co-registrar; the term “Paying Agent” includes any additional paying agent; and the term “Notice Agent” includes any additional notice agent.  The Company or any of its Affiliates may serve as Registrar or Paying Agent.

 

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The Company hereby appoints the Trustee the initial Registrar, Paying Agent and Notice Agent for each Series unless another Registrar, Paying Agent or Notice Agent, as the case may be, is appointed prior to the time Securities of that Series are first issued.

 

Section 2.5                                   Paying Agent to Hold Money in Trust.

 

The Company shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust, for the benefit of Securityholders of any Series of Securities, or the Trustee, all money held by the Paying Agent for the payment of principal of or interest on the Series of Securities, and will notify the Trustee in writing of any default by the Company in making any such payment.  While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee.  The Company at any time may require a Paying Agent to pay all money held by it to the Trustee.  Upon payment over to the Trustee, the Paying Agent (if other than the Company or a Subsidiary of the Company) shall have no further liability for the money.  If the Company or a Subsidiary of the Company acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of Securityholders of any Series of Securities all money held by it as Paying Agent.  Upon any bankruptcy, reorganization or similar proceeding with respect to the Company, the Trustee shall serve as Paying Agent for the Securities.

 

Section 2.6                                   Securityholder Lists.

 

The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Securityholders of each Series of Securities and shall otherwise comply with TIA Section 312(a).  If the Trustee is not the Registrar, the Company shall furnish to the Trustee at least ten days before each interest payment date and at such other times as the Trustee may request in writing a list, in such form and as of such date as the Trustee may reasonably require, of the names and addresses of Securityholders of each Series of Securities.

 

Section 2.7                                   Transfer and Exchange.

 

Where Securities of a Series are presented to the Registrar or a co-registrar with a request to register a transfer or to exchange them for an equal principal amount of Securities of the same Series, the Registrar shall register the transfer or make the exchange if its requirements for such transactions are met.  To permit registrations of transfers and exchanges, the Trustee shall authenticate Securities at the Registrar’s request.  No service charge shall be made for any registration of transfer or exchange (except as otherwise expressly permitted herein), but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer tax or similar governmental charge payable upon exchanges pursuant to Sections 2.11, 3.6 or 9.6).

 

Neither the Company nor the Registrar shall be required (a) to issue, register the transfer of, or exchange Securities of any Series for the period beginning at the opening of business fifteen days immediately preceding the mailing of a notice of redemption of Securities of that Series selected for redemption and ending at the close of business on the day of such mailing, or (b) to register the transfer of or exchange Securities of any Series selected, called or being called for redemption as a whole or the portion being redeemed of any such Securities selected, called or being called for redemption in part.

 

Section 2.8                                   Mutilated, Destroyed, Lost and Stolen Securities.

 

If any mutilated Security is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

 

If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction of the destruction, loss or theft of any Security and (ii) such security or indemnity bond as may be required by each of them to hold itself and any of its agents harmless, then, in the absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide purchaser, the Company shall execute and upon its request the 

 

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Trustee shall authenticate and make available for delivery, in lieu of any such destroyed, lost or stolen Security, a new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

 

In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such Security.

 

Upon the issuance of any new Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.

 

Every new Security of any Series issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of that Series duly issued hereunder.

 

The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities.

 

Section 2.9                                   Outstanding Securities.

 

The Securities outstanding at any time are all the Securities authenticated by the Trustee except for those canceled by it, those delivered to it for cancellation, those reductions in the interest on a Global Security effected by the Trustee in accordance with the provisions hereof and those described in this Section as not outstanding.

 

If a Security is replaced pursuant to Section 2.8, it ceases to be outstanding until the Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide purchaser.

 

If the Paying Agent (other than the Company, a Subsidiary of the Company or an Affiliate of the Company) holds on the Maturity of Securities of a Series money sufficient to pay such Securities payable on that date, then on and after that date such Securities of the Series cease to be outstanding and interest on them ceases to accrue.

 

The Company may purchase or otherwise acquire the Securities, whether by open market purchases, negotiated transactions or otherwise.  A Security does not cease to be outstanding because the Company or an Affiliate of the Company holds the Security.

 

In determining whether the Holders of the requisite principal amount of outstanding Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the principal amount of a Discount Security that shall be deemed to be outstanding for such purposes shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the Maturity thereof pursuant to Section 6.2.

 

Section 2.10                            Treasury Securities.

 

In determining whether the Holders of the required principal amount of Securities of a Series have concurred in any request, demand, authorization, direction, notice, consent or waiver, Securities of a Series owned by the Company or any Affiliate of the Company shall be disregarded, except that for the purposes of determining whether the Trustee shall be protected in relying on any such request, demand, authorization, direction, notice, consent or waiver, only Securities of a Series that a Responsible Officer of the Trustee knows are so owned shall be so disregarded.

 

Section 2.11                            Temporary Securities.

 

Until definitive Securities are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Securities upon a Company Order.  Temporary Securities shall be substantially in the form 

 

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of definitive Securities but may have variations that the Company considers appropriate for temporary Securities.  Without unreasonable delay, the Company shall prepare and the Trustee upon receipt of a Company Order shall authenticate definitive Securities of the same Series and date of maturity in exchange for temporary Securities.  Until so exchanged, temporary securities shall have the same rights under this Indenture as the definitive Securities.

 

Section 2.12                            Cancellation.

 

The Company at any time may deliver Securities to the Trustee for cancellation.  The Registrar and the Paying Agent shall forward to the Trustee any Securities surrendered to them for registration of transfer, exchange or payment.  The Trustee shall cancel all Securities surrendered for transfer, exchange, payment, replacement or cancellation and shall destroy such canceled Securities (subject to the record retention requirement of the Exchange Act and the Trustee) and deliver a certificate of such cancellation to the Company upon written request of the Company.  The Company may not issue new Securities to replace Securities that it has paid or delivered to the Trustee for cancellation.

 

Section 2.13                            Defaulted Interest.

 

If the Company defaults in a payment of interest on a Series of Securities, it shall pay the defaulted interest, plus, to the extent permitted by law, any interest payable on the defaulted interest, to the persons who are Securityholders of the Series on a subsequent special record date.  The Company shall fix the special record date and payment date.  At least 10 days before the special record date, the Company shall mail to the Trustee and to each Securityholder of the Series a notice that states the record date, the payment date and the amount of interest to be paid.  The Company may pay defaulted interest in any other lawful manner.

 

Section 2.14                            Global Securities.

 

2.14.1 Terms of Securities. A Board Resolution, a supplemental indenture hereto or an Officer’s Certificate shall establish whether the Securities of a Series shall be issued in whole or in part in the form of one or more Global Securities and the Depositary for such Global Security or Securities.

 

2.14.2 Transfer and Exchange. Notwithstanding any provisions to the contrary contained in Section 2.7 of the Indenture and in addition thereto, any Global Security shall be exchangeable pursuant to Section 2.7 of the Indenture for Securities registered in the names of Holders other than the Depositary for such Security or its nominee only if (i) such Depositary notifies the Company that it is unwilling or unable to continue as Depositary for such Global Security or if at any time such Depositary ceases to be a clearing agency registered under the Exchange Act, and, in either case, the Company fails to appoint a successor Depositary registered as a clearing agency under the Exchange Act within 90 days of such event or (ii) the Company executes and delivers to the Trustee an Officer’s Certificate to the effect that such Global Security shall be so exchangeable. Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Securities registered in such names as the Depositary shall direct in writing in an aggregate principal amount equal to the principal amount of the Global Security with like tenor and terms.

 

Except as provided in this Section 2.14.2, a Global Security may not be transferred except as a whole by the Depositary with respect to such Global Security to a nominee of such Depositary, by a nominee of such Depositary to such Depositary or another nominee of such Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such a successor Depositary.

 

2.14.3 Legend. Any Global Security issued hereunder shall bear a legend in substantially the following form:

 

“THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY.  THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY 

 

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IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH A SUCCESSOR DEPOSITARY.”

 

DEPOSITARY, BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH A SUCCESSOR DEPOSITARY.”

 

2.14.4 Acts of Holders. The Depositary, as a Holder, may appoint agents and otherwise authorize participants to give or take any request, demand, authorization, direction, notice, consent, waiver or other action which a Holder is entitled to give or take under the Indenture.

 

2.14.5 Payments. Notwithstanding the other provisions of this Indenture, unless otherwise specified as contemplated by Section 2.2, payment of the principal of and interest, if any, on any Global Security shall be made to the Holder thereof.

 

2.14.6 Consents, Declaration and Directions. The Company, the Trustee and any Agent shall treat a person as the Holder of such principal amount of outstanding Securities of such Series represented by a Global Security as shall be specified in a written statement of the Depositary or by the applicable procedures of such Depositary with respect to such Global Security, for purposes of obtaining any consents, declarations, waivers or directions required to be given by the Holders pursuant to this Indenture.

 

Section 2.15                            CUSIP Numbers.

 

The Company in issuing the Securities may use “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other elements of identification printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers. CUSIP Numbers.

 

ARTICLE III
 REDEMPTION

 

Section 3.1                                   Notice to Trustee.

 

The Company may, with respect to any Series of Securities, reserve the right to redeem and pay the Series of Securities or may covenant to redeem and pay the Series of Securities or any part thereof prior to the Stated Maturity thereof at such time and on such terms as provided for in such Securities.  If a Series of Securities is redeemable and the Company wants or is obligated to redeem prior to the Stated Maturity thereof all or part of the Series of Securities pursuant to the terms of such Securities, it shall notify the Trustee in writing of the redemption date and the principal amount of Series of Securities to be redeemed.  The Company shall give the notice at least 15 days before the redemption date.

 

Section 3.2                                   Selection of Securities to be Redeemed.

 

Unless otherwise indicated for a particular Series by a Board Resolution, a supplemental indenture hereto or Officer’s Certificate, if less than all the Securities of a Series are to be redeemed, the Trustee shall select the Securities of the Series to be redeemed in any manner that the Trustee deems fair and appropriate, including by lot or other method, unless otherwise required by law or applicable stock exchange requirements, subject, in the case of Global Securities, to the applicable rules and procedures of the Depositary.  The Trustee shall make the selection from Securities of the Series outstanding not previously called for redemption.  The Trustee may select for redemption portions of the principal of Securities of the Series that have denominations larger than $1,000.  

 

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Securities of the Series and portions of them it selects shall be in amounts of $1,000 or whole multiples of $1,000 or, with respect to Securities of any Series issuable in other denominations pursuant to Section 2.2.10, the minimum principal denomination for each Series and the authorized integral multiples thereof.  Provisions of this Indenture that apply to Securities of a Series called for redemption also apply to portions of Securities of that Series called for redemption.

 

Section 3.3                                   Notice of Redemption.

 

Unless otherwise indicated for a particular Series by Board Resolution, a supplemental indenture hereto or an Officer’s Certificate, at least 15 days but not more than 60 days before a redemption date, the Company shall mail a notice of redemption by first-class mail to each Holder whose Securities are to be redeemed.

 

The notice shall identify the Securities of the Series to be redeemed and shall state:

 

(a) the redemption date;

 

(b) the redemption price;

 

(c) the name and address of the Paying Agent;

 

(d) if any Securities are being redeemed in part, the portion of the principal amount of such Securities to be redeemed and that, after the redemption date and upon surrender of such Security, a new Security or Securities in principal amount equal to the unredeemed portion of the original Security shall be issued in the name of the Holder thereof upon cancellation of the original Security;

 

(e) that Securities of the Series called for redemption must be surrendered to the Paying Agent to collect the redemption price;

 

(f) that interest on Securities of the Series called for redemption ceases to accrue on and after the redemption date unless the Company defaults in the deposit of the redemption price;

 

(g) the CUSIP number, if any; and

 

(h) any other information as may be required by the terms of the particular Series or the Securities of a Series being redeemed.

 

At the Company’s request, the Trustee shall give the notice of redemption in the Company’s name and at its expense, provided, however, that the Company has delivered to the Trustee, at least 10 days (unless a shorter time shall be acceptable to the Trustee) prior to the notice date, an Officer’s Certificate requesting that the Trustee give such notice and setting forth the information to be stated in such notice.

 

Section 3.4                                   Effect of Notice of Redemption.

 

Once notice of redemption is mailed as provided in Section 3.3, Securities of a Series called for redemption become due and payable on the redemption date and at the redemption price.  Except as otherwise provided in the supplemental indenture, Board Resolution or Officer’s Certificate for a Series, a notice of redemption may not be conditional.  Upon surrender to the Paying Agent, such Securities shall be paid at the redemption price plus accrued interest to the redemption date.

 

Section 3.5                                   Deposit of Redemption Price.

 

On or before 11:00 a.m., New York City time, on the redemption date, the Company shall deposit with the Paying Agent money sufficient to pay the redemption price of and accrued interest, if any, on all Securities to be redeemed on that date.

 

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Section 3.6                                   Securities Redeemed in Part.

 

Upon surrender of a Security that is redeemed in part, the Trustee shall authenticate for the Holder a new Security of the same Series and the same maturity equal in principal amount to the unredeemed portion of the Security surrendered.

 

ARTICLE IV
 COVENANTS

 

Section 4.1                                   Payment of Principal and Interest.

 

The Company covenants and agrees for the benefit of the Holders of each Series of Securities that it will duly and punctually pay the principal of and interest, if any, on the Securities of that Series in accordance with the terms of such Securities and this Indenture.  On or before 11:00 a.m., New York City time, on the applicable payment date, the Company shall deposit with the Paying Agent money sufficient to pay the principal of and interest, if any, on the Securities of each Series in accordance with the terms of such Securities and this Indenture.

 

Section 4.2                                   SEC Reports.

 

To the extent any Securities of a Series are outstanding, the Company shall deliver to the Trustee within 15 days after it files them with the SEC copies of the annual reports and of the information, documents, and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act.  The Company also shall comply with the other provisions of TIA Section 314(a).  Reports, information and documents filed with the SEC via the EDGAR system will be deemed to be delivered to the Trustee as of the time of such filing via EDGAR for purposes of this Section 4.2.

 

Delivery of reports, information and documents to the under this Section 4.2 are for informational purposes only and the Trustee’s receipt of the foregoing shall not constitute constructive or actual notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on an Officer’s Certificate).

 

Section 4.3                                   Compliance Certificate.

 

To the extent any Securities of a Series are outstanding, the Company shall deliver to the Trustee, within 120 days after the end of each fiscal year of the Company, an Officer’s Certificate stating that a review of the activities of the Company and its Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers with a view to determining whether the Company has kept, observed, performed and fulfilled its obligations under this Indenture, and further stating, as to each such Officer signing such certificate, that to the best of his/her knowledge the Company has kept, observed, performed and fulfilled each and every covenant contained in this Indenture and is not in default in the performance or observance of any of the terms, provisions and conditions hereof (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of which the Officer may have knowledge).

 

The Company will, so long as any of the Securities are outstanding, deliver to the Trustee, promptly upon becoming aware of any Default or Event of Default, an Officer’s Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto.

 

Section 4.4                                   Stay, Extension and Usury Laws.

 

The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture or the Securities and the Company (to the extent it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not, by resort to any such law, hinder, delay or impede the 

 

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execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law has been enacted.

 

Section 4.5                                   Corporate Existence.

 

Subject to Article V, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence and rights (charter and statutory); provided, however, that the Company shall not be required to preserve any such right if the Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and its Subsidiaries taken as a whole and that the loss thereof is not adverse in any material respect to the Holders.

 

ARTICLE V
 SUCCESSORS

 

Section 5.1                                   When Company May Merge, Etc.

 

The Company shall not consolidate with or merge with or into, or convey, transfer or lease all or substantially all of its properties and assets to, any person (a “successor person”) unless:

 

(a) the Company is the surviving entity or the successor person (if other than the Company) is a corporation, partnership, trust or other entity organized and validly existing under the laws of any U.S. domestic jurisdiction and expressly assumes the Company’s obligations on the Securities and under this Indenture; and

 

(b) immediately after giving effect to the transaction, no Default or Event of Default, shall have occurred and be continuing.

 

The Company shall deliver to the Trustee prior to the consummation of the proposed transaction an Officer’s Certificate to the foregoing effect and an Opinion of Counsel stating that the proposed transaction and any supplemental indenture comply with this Indenture.

 

Notwithstanding the above, any Subsidiary of the Company may consolidate with, merge into or transfer all or part of its properties to the Company. Neither an Officer’s Certificate nor an Opinion of Counsel shall be required to be delivered in connection therewith.

 

Section 5.2                                   Successor Corporation Substituted.

 

Upon any consolidation or merger, or any sale, lease, conveyance or other disposition of all or substantially all of the assets of the Company in accordance with Section 5.1, the successor corporation formed by such consolidation or into or with which the Company is merged or to which such sale, lease, conveyance or other disposition is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor person has been named as the Company herein; provided, however, that the predecessor Company in the case of a sale, conveyance or other disposition (other than a lease) shall be released from all obligations and covenants under this Indenture and the Securities.

 

ARTICLE VI
 DEFAULTS AND REMEDIES

 

Section 6.1                                   Events of Default.

 

“Event of Default,” wherever used herein with respect to Securities of any Series, means any one of the following events, unless in the establishing Board Resolution, supplemental indenture or Officer’s Certificate, it is provided that such Series shall not have the benefit of said Event of Default:

 

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(a)                                 default in the payment of any interest on any Security of that Series when it becomes due and payable, and continuance of such default for a period of 30 days (unless the entire amount of such payment is deposited by the Company with the Trustee or with a Paying Agent prior to 11:00 a.m., New York City time, on the 30th day of such period); or

 

(b)                                 default in the payment of principal of any Security of that Series at its Maturity; or

 

(c)                                  default in the performance or breach of any covenant or warranty of the Company in this Indenture (other than defaults pursuant to paragraphs (a) or (b) above or pursuant to a covenant or warranty that has been included in this Indenture solely for the benefit of Series of Securities other than that Series), which default continues uncured for a period of 60 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the outstanding Securities of that Series a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or

 

(d)                                 the Company pursuant to or within the meaning of any Bankruptcy Law:

 

(i)                                     commences a voluntary case,

 

(ii)                                  consents to the entry of an order for relief against it in an involuntary case,

 

(iii)                               consents to the appointment of a Custodian of it or for all or substantially all of its property,

 

(iv)                              makes a general assignment for the benefit of its creditors, or

 

(v)                                 generally is unable to pay its debts as the same become due; or

 

(e)                                  a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

 

(i)                                     is for relief against the Company in an involuntary case,

 

(ii)                                  appoints a Custodian of the Company or for all or substantially all of its property, or

 

(iii)                               orders the liquidation of the Company, and the order or decree remains unstayed and in effect for 60 days; or

 

(f)                                   any other Event of Default provided with respect to Securities of that Series, which is specified in a Board Resolution, a supplemental indenture hereto or an Officer’s Certificate, in accordance with Section 2.2.18.

 

Section 6.2                                   Acceleration of Maturity; Rescission and Annulment.

 

If an Event of Default with respect to Securities of any Series at the time outstanding occurs and is continuing (other than an Event of Default referred to in Section 6.1(d) or (e)), then in every such case the Trustee or the Holders of not less than 25% in principal amount of the outstanding Securities of that Series may declare the principal amount (or, if any Securities of that Series are Discount Securities, such portion of the principal amount as may be specified in the terms of such Securities) of and accrued and unpaid interest, if any, on all of the Securities of that Series to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified amount) and accrued and unpaid interest, if any, shall become immediately due and payable.  If an Event of Default specified in Section 6.1(d) or (e) shall occur, the principal amount (or specified amount) of and accrued and unpaid interest, if any, on all outstanding 

 

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Securities shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder.

 

At any time after such a declaration of acceleration with respect to any Series has been made and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of the outstanding Securities of that Series, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if all Events of Default with respect to Securities of that Series, other than the non-payment of the principal and interest, if any, of Securities of that Series which have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 6.13.

 

No such rescission shall affect any subsequent Default or impair any right consequent thereon.

 

Section 6.3                                   Collection of Indebtedness and Suits for Enforcement by Trustee.

 

The Company covenants that if

 

(a)                                 default is made in the payment of any interest on any Security when such interest becomes due and payable and such default continues for a period of 30 days, or

 

(b)                                 default is made in the payment of principal of any Security at the Maturity thereof, or

 

(c)                                  default is made in the deposit of any sinking fund payment, if any, when and as due by the terms of a Security,

 

If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company or any other obligor upon such Securities and collect the moneys adjudged or deemed to be payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities, wherever situated.

 

If an Event of Default with respect to any Securities of any Series occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders of Securities of such Series by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy.

 

Section 6.4                                   Trustee May File Proofs of Claim.

 

In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee (irrespective of whether the principal of the Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue principal or interest) shall be entitled and empowered, by intervention in such proceeding or otherwise,

 

(a)                                 to file and prove a claim for the whole amount of principal and interest owing and unpaid in respect of the Securities and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of the Holders allowed in such judicial proceeding, and

 

(b)                                 to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same, and any custodian, receiver, assignee, trustee, liquidator, sequestrator or 

 

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other similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.7.

 

Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

 

Section 6.5                                   Trustee May Enforce Claims Without Possession of Securities.

 

All rights of action and claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of any of the Securities or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in respect of which such judgment has been recovered.

 

Section 6.6                                   Application of Money Collected.

 

Any money or property collected by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money or property on account of principal or interest, upon presentation of the Securities and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:

 

First:  To the payment of all amounts due the Trustee under Section 7.7; and

 

Second:  To the payment of the amounts then due and unpaid for principal of and interest on the Securities in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal and interest, respectively; and

 

Third:  To the Company.

 

Section 6.7                                   Limitation on Suits.

 

No Holder of any Security of any Series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless

 

(a)                                 such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Securities of that Series;

 

(b)                                 the Holders of not less than 25% in principal amount of the outstanding Securities of that Series shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder;

 

(c)                                  such Holder or Holders have offered to the Trustee indemnity or security satisfactory to the Trustee against the costs, expenses and liabilities which might be incurred by the Trustee in compliance with such request;

 

(d)                                 the Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding; and

 

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(e)                                  no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in principal amount of the outstanding Securities of that Series;

 

it being understood, intended and expressly covenanted by the Holder of every Security with every other Holder and the Trustee that no one or more of such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all such Holders of the applicable Series.

 

Section 6.8                                   Unconditional Right of Holders to Receive Principal and Interest.

 

Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment of the principal of and interest, if any, on such Security on the Maturity of such Security, including the Stated Maturity expressed in such Security (or, in the case of redemption, on the redemption date) and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder.

 

Section 6.9                                   Restoration of Rights and Remedies.

 

If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any determination in such proceeding, the Company, the Trustee and the Holders shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted.

 

Section 6.10                            Rights and Remedies Cumulative.

 

Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in Section 2.8, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not, to the extent permitted by law, prevent the concurrent assertion or employment of any other appropriate right or remedy.

 

Section 6.11                            Delay or Omission Not Waiver.

 

No delay or omission of the Trustee or of any Holder of any Securities to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein.  Every right and remedy given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

 

Section 6.12                            Control by Holders.

 

The Holders of a majority in principal amount of the outstanding Securities of any Series shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the Securities of such Series, provided that

 

(a)                                 such direction shall not be in conflict with any rule of law or with this Indenture,

 

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(b)                                 the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction,

 

(c)                                  subject to the provisions of Section 6.1, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall, by a Responsible Officer of the Trustee, determine that the proceeding so directed would involve the Trustee in personal liability; and

 

(d)                                 prior to taking any action as directed under this Section 6.12, the Trustee shall be entitled to indemnity satisfactory to it against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.

 

Section 6.13                            Waiver of Past Defaults.

 

The Holders of not less than a majority in principal amount of the outstanding Securities of any Series may on behalf of the Holders of all the Securities of such Series waive any past Default hereunder with respect to such Series and its consequences, except a Default in the payment of the principal of or interest on any Security of such Series (provided, however, that the Holders of a majority in principal amount of the outstanding Securities of any Series may rescind an acceleration and its consequences, including any related payment default that resulted from such acceleration).  Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

 

Section 6.14                            Undertaking for Costs.

 

All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Company, to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10% in principal amount of the outstanding Securities of any Series, or to any suit instituted by any Holder for the enforcement of the payment of the principal of or interest on any Security on or after the Maturity of such Security, including the Stated Maturity expressed in such Security (or, in the case of redemption, on the redemption date).

 

ARTICLE VII
 TRUSTEE

 

Section 7.1                                   Duties of Trustee.

 

(a)                                 If an Event of Default has occurred and is continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs.

 

(b)                                 Except during the continuance of an Event of Default:

 

(i)                                     The Trustee need perform only those duties that are specifically set forth in this Indenture and no others.

 

(ii)                                  In the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon Officer’s Certificates or Opinions of Counsel furnished to the Trustee and conforming to the requirements of this Indenture; however, in the case of any such Officer’s Certificates or Opinions of Counsel which by any provisions hereof are specifically required to be furnished to the Trustee, the Trustee 

 

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shall examine such Officer’s Certificates and Opinions of Counsel to determine whether or not they conform to the form requirements of this Indenture.

 

(c)                                  The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that:

 

(i)                                     This paragraph does not limit the effect of paragraph (b) of this Section.

 

(ii)                                  The Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts.

 

(iii)                               The Trustee shall not be liable with respect to any action taken, suffered or omitted to be taken by it with respect to Securities of any Series in good faith in

 

Section 7.2                                   Rights of Trustee.

 

(a)                                 The Trustee may rely on and shall be protected in acting or refraining from acting upon any document (whether in its original or facsimile form) believed by it to be genuine and to have been signed or presented by the proper person. The Trustee need not investigate any fact or matter stated in the document.

 

(b)                                 Before the Trustee acts or refrains from acting, it may require an Officer’s Certificate or an Opinion of Counsel or both. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officer’s Certificate or Opinion of Counsel.

 

(c)                                  The Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care. No Depositary shall be deemed an agent of the Trustee and the Trustee shall not be responsible for any act or omission by any Depositary.

 

(d)                                 The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers, provided that the Trustee’s conduct does not constitute willful misconduct or negligence.

 

(e)                                  The Trustee may consult with counsel and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder without willful misconduct or negligence, and in reliance thereon.

 

(f)                                   The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders of Securities unless such Holders shall have offered to the Trustee security or indemnity satisfactory to it against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.

 

(g)                                  The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit.

 

(h)                                 The Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any event which is in fact such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities generally or the Securities of a particular Series and this Indenture.

 

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(i)                                     In no event shall the Trustee be liable to any person for special, punitive, indirect, consequential or incidental loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Trustee has been advised of the likelihood of such loss or damage.

 

(j)                                    The permissive right of the Trustee to take the actions permitted by this Indenture shall not be construed as an obligation or duty to do so.

 

Section 7.3                                   Individual Rights of Trustee.

 

The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or an Affiliate of the Company with the same rights it would have if it were not Trustee.  Any Agent may do the same with like rights.  The Trustee is also subject to Sections 7.10 and 7.11.

 

Section 7.4                                   Trustee’s Disclaimer.

 

The Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the Company’s use of the proceeds from the Securities, and it shall not be responsible for any statement in the Securities other than its authentication.

 

Section 7.5                                   Notice of Defaults.

 

If a Default or Event of Default occurs and is continuing with respect to the Securities of any Series and if it is known to a Responsible Officer of the Trustee, the Trustee shall mail to each Securityholder of the Securities of that Series notice of a Default or Event of Default within 90 days after it occurs or, if later, after a Responsible Officer of the Trustee has knowledge of such Default or Event of Default.  Except in the case of a Default or Event of Default in payment of principal of or interest on any Security of any Series, the Trustee may withhold the notice if and so long as its corporate trust committee or a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of Securityholders of that Series.

 

Section 7.6                                   Reports by Trustee to Holders.

 

Within 60 days after May 15 in each year, the Trustee shall transmit by mail to all Securityholders, as their names and addresses appear on the register kept by the Registrar a brief report dated as of such May 15, in accordance with, and to the extent required under, TIA Section 313.

 

A copy of each report at the time of its mailing to Securityholders of any Series shall be filed with the SEC and each national securities exchange on which the Securities of that Series are listed.  The Company shall promptly notify the Trustee in writing when Securities of any Series are listed on any national securities exchange.

 

Section 7.7                                   Compensation and Indemnity.

 

The Company shall pay to the Trustee from time to time compensation for its services as the Company and the Trustee shall from time to time agree upon in writing.  The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust.  The Company shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses incurred by it.  Such expenses shall include the reasonable compensation and expenses of the Trustee’s agents and counsel.

 

The Company shall indemnify each of the Trustee and any predecessor Trustee (including the cost of defending itself) against any cost, expense or liability, including taxes (other than taxes based upon, measured by or determined by the income of the Trustee) incurred by it except as set forth in the next paragraph in the performance of its duties under this Indenture as Trustee or Agent.  The Trustee shall notify the Company promptly of any claim for which it may seek indemnity.  Failure by the Trustee to so notify the Company shall not relieve the Company of its obligations hereunder, unless and to the extent that the Company is materially prejudiced thereby.  The Company shall defend the claim and the Trustee shall cooperate in the defense.  The Trustee may have one separate counsel and the Company shall pay the reasonable fees and expenses of such counsel.  The Company need not pay for any

 

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settlement made without its consent, which consent will not be unreasonably withheld.  This indemnification shall apply to officers, directors, employees, shareholders and agents of the Trustee.

 

The Company need not reimburse any expense or indemnify against any loss or liability incurred by the Trustee or by any officer, director, employee, shareholder or agent of the Trustee through willful misconduct or negligence.

 

To secure the Company’s payment obligations in this Section, the Trustee shall have a lien prior to the Securities of any Series on all money or property held or collected by the Trustee, except that held in trust to pay principal of and interest on particular Securities of that Series.

 

When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.1(d) or (e) occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law.

 

The provisions of this Section shall survive the termination of this Indenture.

 

Section 7.8                                   Replacement of Trustee.

 

A resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s acceptance of appointment as provided in this Section.

 

The Trustee may resign with respect to the Securities of one or more Series by so notifying the Company at least 30 days prior to the date of the proposed resignation.  The Holders of a majority in principal amount of the Securities of any Series may remove the Trustee with respect to that Series by so notifying the Trustee and the Company.  The Company may remove the Trustee with respect to Securities of one or more Series if:

 

(a)                                 the Trustee fails to comply with Section 7.10;

 

(b)                                 the Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy Law;

 

(c)                                  a Custodian or public officer takes charge of the Trustee or its property; or

 

(d)                                 the Trustee becomes incapable of acting.

 

If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint a successor Trustee.  Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of the then outstanding Securities may appoint a successor Trustee to replace the successor Trustee appointed by the Company.

 

If a successor Trustee with respect to the Securities of any one or more Series does not take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or the Holders of at least a majority in principal amount of the Securities of the applicable Series may petition any court of competent jurisdiction for the appointment of a successor Trustee.

 

A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company.  Immediately after that, the retiring Trustee shall transfer all property held by it as Trustee to the successor Trustee subject to the lien provided for in Section 7.7, the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee with respect to each Series of Securities for which it is acting as Trustee under this Indenture.  A successor Trustee shall mail a notice of its succession to each Securityholder of each such Series.  Notwithstanding replacement of the Trustee pursuant to this Section 7.8, the Company’s obligations under Section 7.7 hereof shall continue for the benefit of the retiring Trustee with respect to expenses and liabilities incurred by it for actions taken or omitted to be taken in accordance with its rights, powers and duties under this Indenture prior to such replacement.

 

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Section 7.9                                   Successor Trustee by Merger, etc.

 

If the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business to, another corporation, the successor corporation without any further act shall be the successor Trustee.

 

Section 7.10                            Eligibility; Disqualification.

 

This Indenture shall always have a Trustee who satisfies the requirements of TIA Section 310(a)(1), (2) and (5).  The Trustee shall always have a combined capital and surplus of at least $25,000,000 as set forth in its most recent published annual report of condition.  The Trustee shall comply with TIA Section 310(b), subject to Section 7.10.

 

Section 7.11                            Preferential Collection of Claims Against Company.

 

The Trustee is subject to TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b).  A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated.

 

ARTICLE VIII
 SATISFACTION AND DISCHARGE; DEFEASANCE

 

Section 8.1                                   Satisfaction and Discharge of Indenture.

 

This Indenture shall upon Company Order cease to be of further effect (except as hereinafter provided in this Section 8.1), and the Trustee, at the expense of the Company, shall execute instruments acknowledging satisfaction and discharge of this Indenture, when

 

(a)                                 either

 

(i)                                     all Securities theretofore authenticated and delivered (other than Securities that have been destroyed, lost or stolen and that have been replaced or paid) have been delivered to the Trustee for cancellation; or

 

(ii)                                  all such Securities not theretofore delivered to the Trustee for cancellation

 

(1)                                 have become due and payable, or

 

(2)                                 will become due and payable at their Stated Maturity within one year, or

 

(3)                                 have been called for redemption or are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company, or

 

(4)                                 are deemed paid and discharged pursuant to Section 8.3, as applicable;

 

and the Company, in the case of (1), (2) or (3) above, has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust an amount sufficient for the purpose of paying and discharging the entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, for principal and interest to the date of such deposit (in the case of Securities which have become due and payable on or prior to the date of such deposit) or to the Stated Maturity or redemption date, as the case may be;

 

(b)                                 the Company has paid or caused to be paid all other sums payable hereunder by the Company; and

 

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(c)                                  the Company has delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with.

 

Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 7.7, and, if money shall have been deposited with the Trustee pursuant to clause (a) of this Section, the provisions of Sections 2.4, 2.7, 2.8, 8.2 and 8.5 shall survive

 

Section 8.2                                   Application of Trust Funds; Indemnification.

 

(a)                                 Subject to the provisions of Section 8.5, all money deposited with the Trustee pursuant to Section 8.1, all money and U.S. Government Obligations or Foreign Government Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4 and all money received by the Trustee in respect of U.S. Government Obligations or Foreign Government Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4, shall be held in trust and applied by it, in accordance with the provisions of the Securities and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the persons entitled thereto, of the principal and interest for whose payment such money has been deposited with or received by the Trustee or to make mandatory sinking fund payments or analogous payments as contemplated by Sections 8.3 or 8.4.

 

(b)                                 The Company shall pay and shall indemnify the Trustee against any tax, fee or other charge imposed on or assessed against U.S. Government Obligations or Foreign.

 

(c)                                  The Trustee shall deliver or pay to the Company from time to time upon Company Order any U.S. Government Obligations or Foreign Government Obligations or money held by it as provided in Sections 8.3 or 8.4 which, in the opinion of a nationally recognized firm of independent certified public accountants or investment bank expressed in a written certification thereof delivered to the Trustee, are then in excess of the amount thereof which then would have been required to be deposited for the purpose for which such U.S. Government Obligations or Foreign Government Obligations or money were deposited or received. This provision shall not authorize the sale by the Trustee of any U.S. Government Obligations or Foreign Government Obligations held under this Indenture

 

Section 8.3                                   Legal Defeasance of Securities of any Series.

 

Unless this Section 8.3 is otherwise specified, pursuant to Section 2.2.20, to be inapplicable to Securities of any Series, the Company shall be deemed to have paid and discharged the entire indebtedness on all the outstanding Securities of any Series on the 91st day after the date of the deposit referred to in subparagraph (d) hereof, and the provisions of this Indenture, as it relates to such outstanding Securities of such Series, shall no longer be in effect (and the Trustee, at the expense of the Company, shall, upon receipt of a Company Order, execute instruments acknowledging the same), except as to:

 

(a)                                 the rights of Holders of Securities of such Series to receive, from the trust funds described in subparagraph (d) hereof, (i) payment of the principal of and each installment of principal of and interest on the outstanding Securities of such Series on the Maturity of such principal or installment of principal or interest and (ii) the benefit of any mandatory sinking fund payments applicable to the Securities of such Series on the day on which such payments are due and payable in accordance with the terms of this Indenture and the Securities of such Series;

 

(b)                                 the provisions of Sections 2.4, 2.7, 2.8, 8.2, 8.3 and 8.5; and

 

(c)                                  the rights, powers, trust and immunities of the Trustee hereunder and the Company’s obligations in connection therewith;

 

provided that, the following conditions shall have been satisfied:

 

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(d)                                 the Company shall have deposited or caused to be irrevocably deposited (except as provided in Section 8.2(c)) with the Trustee as trust funds in trust for the purpose of making the following payments, specifically pledged as security for and dedicated solely to the benefit of the Holders of such Securities (i) in the case of Securities of such Series denominated in Dollars, cash in Dollars and/or U.S. Government Obligations, or (ii) in the case of Securities of such Series denominated in a Foreign Currency (other than a composite currency), money and/or Foreign Government Obligations, which through the payment of interest and principal in respect thereof in accordance with their terms, will provide (and without reinvestment and assuming no tax liability will be imposed on such Trustee), not later than one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized firm of independent public accountants or investment bank expressed in a written certification thereof delivered to the Trustee, to pay and discharge each installment of principal of and interest, if any, on and any mandatory sinking fund payments in respect of all the Securities of such Series on the dates such installments of interest or principal and such sinking fund payments are due;

 

(e)                                  such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement or instrument to which the Company is a party or by which it is bound;

 

(f)                                   no Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of such deposit or during the period ending on the 91st day after such date;

 

(g)                                  the Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel to the effect that (i) the Company has received from, or there has been published by, the Internal Revenue Service a ruling, or (ii) since the date of execution of this Indenture, there has been a change in the applicable Federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the Securities of such Series will not recognize income, gain or loss for Federal income tax purposes as a result of such deposit, defeasance and discharge and will be subject to Federal income tax on the same amount and in the same manner and at the same times as would have been the case if such deposit, defeasance and discharge had not occurred;

 

(h)                                 the Company shall have delivered to the Trustee an Officer’s Certificate stating that the deposit was not made by the Company with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company; and

 

(i)                                     the Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for relating to the defeasance contemplated by this Section have been complied with.

 

Section 8.4                                   Covenant Defeasance.

 

Unless this Section 8.4 is otherwise specified pursuant to Section 2.2.20 to be inapplicable to Securities of any Series, the Company may omit to comply with respect to the Securities of any Series with any term, provision or condition set forth under Sections 4.2, 4.3, 4.4, 4.5, and 5.1 as well as any additional covenants specified in a supplemental indenture for such Series of Securities or a Board Resolution or an Officer’s Certificate delivered pursuant to Section 2.2.20 (and the failure to comply with any such covenants shall not constitute a Default or Event of Default with respect to such Series under Section 6.1) and the occurrence of any event specified in a supplemental indenture for such Series of Securities or a Board Resolution or an Officer’s Certificate delivered pursuant to Section 2.2.18 and designated as an Event of Default shall not constitute a Default or Event of Default hereunder, with respect to the Securities of such Series, provided that the following conditions shall have been satisfied:

 

(a)                                 With reference to this Section 8.4, the Company has deposited or caused to be irrevocably deposited (except as provided in Section 8.2(c)) with the Trustee as trust funds in trust for the purpose of making the following payments specifically pledged as security for, and dedicated solely to, the benefit of the Holders of such Securities (i) in the case of Securities of such Series denominated in Dollars, cash in Dollars and/or U.S. Government Obligations, or (ii) in the case of Securities of such Series denominated in a Foreign Currency (other than a composite currency), money and/or Foreign Government 

 

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Obligations, which through the payment of interest and principal in respect thereof in accordance with their terms, will provide (and without reinvestment and assuming no tax liability will be imposed on such Trustee), not later than one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized firm of independent certified public accountants or investment bank expressed in a written certification thereof delivered to the Trustee, to pay and discharge each installment of principal of and interest, if any, on and any mandatory sinking fund payments in respect of the Securities of such Series on the dates such installments of interest or principal and such sinking fund payments are due;

 

(b)                                 Such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement or instrument to which the Company is a party or by which it is bound;

 

(c)                                  No Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of such deposit;

 

(d)                                 The Company shall have delivered to the Trustee an Opinion of Counsel to the effect that Holders of the Securities of such Series will not recognize income, gain or loss for federal income tax purposes as a result of such deposit and covenant defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such deposit and covenant defeasance had not occurred;

 

(e)                                  The Company shall have delivered to the Trustee an Officer’s Certificate stating the deposit was not made by the Company with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company; and

 

(f)                                   The Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the covenant defeasance contemplated by this Section have been complied with.

 

Section 8.5                                   Repayment to Company.

 

Subject to applicable abandoned property law, the Trustee and the Paying Agent shall pay to the Company upon request any money held by them for the payment of principal and interest that remains unclaimed for two years.  After that, Securityholders entitled to the money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person.

 

Section 8.6                                   Reinstatement.

 

If the Trustee or the Paying Agent is unable to apply any money deposited with respect to Securities of any Series in accordance with Section 8.1 by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the obligations of the Company under this Indenture with respect to the Securities of such Series and under the Securities of such Series shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.1 until such time as the Trustee or the Paying Agent is permitted to apply all such money in accordance with Section 8.1; provided, however, that if the Company has made any payment of principal of or interest on or any Additional Amounts with respect to any Securities because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from the money held by the Trustee or Paying Agent.

 

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ARTICLE IX
 AMENDMENTS AND WAIVERS

 

Section 9.1                                   Without Consent of Holders.

 

The Company and the Trustee may amend or supplement this Indenture or the Securities of one or more Series without the consent of any Securityholder:

 

(a)                                 to cure any ambiguity, defect or inconsistency;

 

(b)                                 to comply with Article V;

 

(c)                                  to provide for uncertificated Securities in addition to or in place of certificated Securities;

 

(d)                                 to make any change that does not adversely affect the rights of any Securityholder;

 

(e)                                  to provide for the issuance of and establish the form and terms and conditions of Securities of any Series as permitted by this Indenture;

 

(f)                                   to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities of one or more Series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee; or

 

(g)                                  to comply with requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA.

 

Section 9.2                                   With Consent of Holders.

 

The Company and the Trustee may enter into a supplemental indenture with the written consent of the Holders of at least a majority in principal amount of the outstanding Securities of each Series affected by such supplemental indenture (including consents obtained in connection with a tender offer or exchange offer for the Securities of such Series), for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner the rights of the Securityholders of each such Series.  Except as provided in Section 6.13, the Holders of at least a majority in principal amount of the outstanding Securities of any Series by notice to the Trustee (including consents obtained in connection with a tender offer or exchange offer for the Securities of such Series) may waive compliance by the Company with any provision of this Indenture or the Securities with respect to such Series.

 

It shall not be necessary for the consent of the Holders of Securities under this Section 9.2 to approve the particular form of any proposed supplemental indenture or waiver, but it shall be sufficient if such consent approves the substance thereof.  After a supplemental indenture or waiver under this section becomes effective, the Company shall mail to the Holders of Securities affected thereby, a notice briefly describing the supplemental indenture or waiver.  Any failure by the Company to mail or publish such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture or waiver.

 

Section 9.3                                   Limitations.

 

Without the consent of each Securityholder affected, an amendment or waiver may not:

 

(a)                                 reduce the principal amount of Securities whose Holders must consent to an amendment, supplement or waiver;

 

(b)                                 reduce the rate of or extend the time for payment of interest (including default interest) on any Security;

 

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(c)                                  reduce the principal or change the Stated Maturity of any Security or reduce the amount of, or postpone the date fixed for, the payment of any sinking fund or analogous obligation;

 

(d)                                 reduce the principal amount of Discount Securities payable upon acceleration of the maturity thereof;

 

(e)                                  waive a Default or Event of Default in the payment of the principal of or interest, if any, on any Security (except a rescission of acceleration of the Securities of any Series by the Holders of at least a majority in principal amount of the outstanding Securities of such Series and a waiver of the payment default that resulted from such acceleration);

 

(f)                                   make the principal of or interest, if any, on any Security payable in any currency other than that stated in the Security;

 

(g)                                  make any change in Sections 6.8, 6.13 or 9.3 (this sentence); or

 

(h)                                 waive a redemption payment with respect to any Security, provided that such redemption is made at the Company’s option.

 

Section 9.4                                   Compliance with Trust Indenture Act.

 

Every amendment to this Indenture or the Securities of one or more Series shall be set forth in a supplemental indenture hereto that complies with the TIA as then in effect.

 

Section 9.5                                   Revocation and Effect of Consents.

 

Until an amendment is set forth in a supplemental indenture or a waiver becomes effective, a consent to it by a Holder of a Security is a continuing consent by the Holder and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent is not made on any Security.  However, any such Holder or subsequent Holder may revoke the consent as to his Security or portion of a Security if the Trustee receives the notice of revocation before the date of the supplemental indenture or the date the waiver becomes effective.

 

Any amendment or waiver once effective shall bind every Securityholder of each Series affected by such amendment or waiver unless it is of the type described in any of clauses (a) through (h) of Section 9.3.  In that case, the amendment or waiver shall bind each Holder of a Security who has consented to it and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security.

 

Section 9.6                                   Notation on or Exchange of Securities.

 

The Trustee may place an appropriate notation about an amendment or waiver on any Security of any Series thereafter authenticated.  The Company in exchange for Securities of that Series may issue and the Trustee shall authenticate upon request new Securities of that Series that reflect the amendment or waiver.

 

Section 9.7                                   Trustee Protected.

 

In executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, and (subject to Section 7.1) shall be fully protected in relying upon, an Officer’s Certificate or an Opinion of Counsel or both stating that the execution of such supplemental indenture is authorized or permitted by this Indenture.  The Trustee shall sign all supplemental indentures authorized or permitted by this Indenture, except that the Trustee need not sign any supplemental indenture that adversely affects its rights.

 

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ARTICLE X
 MISCELLANEOUS

 

Section 10.1                            Trust Indenture Act Controls.

 

If any provision of this Indenture limits, qualifies, or conflicts with another provision which is required or deemed to be included in this Indenture by the TIA, such required or deemed provision shall control.

 

Section 10.2                            Notices.

 

Any notice or communication by the Company or the Trustee to the other, or by a Holder to the Company or the Trustee, is duly given if in writing and delivered in person or mailed by first-class mail:

 

if to the Company:

 

CoreSite Realty Corporation
 1001 17th Street, Suite 500
 Denver, Colorado 80202
 Attention: General Counsel
 Telephone: (866) 777-2673

 

with a copy to:

 

Latham & Watkins LLP
 555 Eleventh Street, NW
 Washington, District of Columbia 20004
 Attention: Patrick H. Shannon, Esq.
 Telephone: (202) 637-1028

 

if to the Trustee:

 

Attention:

Telephone:

Facsimile:

 

The Company or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications.

 

Any notice or communication to a Securityholder shall be mailed by first-class mail to his address shown on the register kept by the Registrar.  Failure to mail a notice or communication to a Securityholder of any Series or any defect in it shall not affect its sufficiency with respect to other Securityholders of that or any other Series.

 

If a notice or communication is mailed or published in the manner provided above, within the time prescribed, it is duly given, whether or not the Securityholder receives it.

 

If the Company or any Guarantor mails a notice or communication to Securityholders, it shall mail a copy to the Trustee and each Agent at the same time.

 

Notwithstanding any other provision of this Indenture or any Security, where this Indenture or any Security provides for notice of any event (including any notice of redemption) to a Holder of a Global Security (whether by mail or otherwise), such notice shall be sufficiently given to the Depositary for such Security (or its designee) pursuant to the customary procedures of such Depositary.

 

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Section 10.3                            Communication by Holders with Other Holders.

 

Securityholders of any Series may communicate pursuant to TIA Section 312(b) with other Securityholders of that Series or any other Series with respect to their rights under this Indenture or the Securities of that Series or all Series.  The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA Section 312(c).

 

Section 10.4                            Certificate and Opinion as to Conditions Precedent.

 

Upon any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee:

 

(a)                                 an Officer’s Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with; and

 

(b)                                 an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with

 

Section 10.5                            Statements Required in Certificate or Opinion.

 

Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than a certificate provided pursuant to TIA Section 314(a)(4)) shall comply with the provisions of TIA Section 314(e) and shall include:

 

(a)                                 a statement that the person making such certificate or opinion has read such covenant or condition;

 

(b)                                 a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

 

(c)                                  a statement that, in the opinion of such person, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and

 

(d)                                 a statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with.

 

Section 10.6                            Rules by Trustee and Agents.

 

The Trustee may make reasonable rules for action by or a meeting of Securityholders of one or more Series.  Any Agent may make reasonable rules and set reasonable requirements for its functions.

 

Section 10.7                            Legal Holidays.

 

Unless otherwise provided by Board Resolution, Officer’s Certificate or supplemental indenture hereto for a particular Series, a “Legal Holiday” is any day that is not a Business Day.  If a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period.

 

Section 10.8                            No Recourse Against Others.

 

A director, officer, employee or stockholder (past or present), as such, of the Company shall not have any liability for any obligations of the Company under the Securities or the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation.  Each Securityholder by accepting a Security waives and releases all such liability.  The waiver and release are part of the consideration for the issue of the Securities.

 

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Section 10.9                            Counterparts.

 

This Indenture may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

Section 10.10                     Governing Laws.

 

THIS INDENTURE AND THE SECURITIES, INCLUDING ANY CLAIM OR CONTROVERSY ARISING OUT OF OR RELATING TO THE INDENTURE OR THE SECURITIES, SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK.

 

Section 10.11                     No Adverse Interpretation of Other Agreements.

 

This Indenture may not be used to interpret another indenture, loan or debt agreement of the Company or a Subsidiary of the Company.  Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

 

Section 10.12                     Successors.

 

All agreements of the Company in this Indenture and the Securities shall bind its successor.  All agreements of the Trustee in this Indenture shall bind its successor.

 

Section 10.13                     Severability.

 

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

 

Section 10.14                     Table of Contents, Headings, Etc.

 

The , Cross-Reference Table, and headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

 

Section 10.15                     Securities in a Foreign Currency.

 

Unless otherwise specified in a Board Resolution, a supplemental indenture hereto or an Officer’s Certificate delivered pursuant to Section 2.2 of this Indenture with respect to a particular Series of Securities, whenever for purposes of this Indenture any action may be taken by the Holders of a specified percentage in aggregate principal amount of Securities of all Series or all Series affected by a particular action at the time outstanding and, at such time, there are outstanding Securities of any Series which are denominated in more than one currency, then the principal amount of Securities of such Series which shall be deemed to be outstanding for the purpose of taking such action shall be determined by converting any such other currency into a currency that is designated upon issuance of any particular Series of Securities.  Unless otherwise specified in a Board Resolution, a supplemental indenture hereto or an Officer’s Certificate delivered pursuant to Section 2.2 of this Indenture with respect to a particular Series of Securities, such conversion shall be at the spot rate for the purchase of the designated currency as published in The Financial Times in the “Currency Rates” section (or, if The Financial Times is no longer published, or if such information is no longer available in The Financial Times, such source as may be selected in good faith by the Company) on any date of determination.  The provisions of this paragraph shall apply in determining the equivalent principal amount in respect of Securities of a Series denominated in currency other than Dollars in connection with any action taken by Holders of Securities pursuant to the terms of this Indenture.

 

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All decisions and determinations provided for in the preceding paragraph shall, in the absence of manifest error, to the extent permitted by law, be conclusive for all purposes and irrevocably binding upon the Trustee and all Holders.

 

Section 10.16                     Judgment Currency.

 

The Company agrees, to the fullest extent that it may effectively do so under applicable law, that (a) if for the purpose of obtaining judgment in any court it is necessary to convert the sum due in respect of the principal of or interest or other amount on the Securities of any Series (the “Required Currency”) into a currency in which a judgment will be rendered (the “Judgment Currency”), the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Trustee could purchase in The City of New York the Required Currency with the Judgment Currency on the day on which final unappealable judgment is entered, unless such day is not a New York Banking Day, then the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Trustee could purchase in The City of New York the Required Currency with the Judgment Currency on the New York Banking Day preceding the day on which final unappealable judgment is entered and (b) its obligations under this Indenture to make payments in the Required Currency (i) shall not be discharged or satisfied by any tender, any recovery pursuant to any judgment (whether or not entered in accordance with subsection (a)), in any currency other than the Required Currency, except to the extent that such tender or recovery shall result in the actual receipt, by the payee, of the full amount of the Required Currency expressed to be payable in respect of such payments, (ii) shall be enforceable as an alternative or additional cause of action for the purpose of recovering in the Required Currency the amount, if any, by which such actual receipt shall fall short of the full amount of the Required Currency so expressed to be payable, and (iii) shall not be affected by judgment being obtained for any other sum due under this Indenture.  For purposes of the foregoing, “New York Banking Day” means any day except a Saturday, Sunday or a legal holiday in The City of New York on which banking institutions are authorized or required by law, regulation or executive order to close.

 

Section 10.17                     Force Majeure.

 

In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services, it being understood that the Trustee shall use reasonable best efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

 

ARTICLE XI
 SINKING FUNDS

 

Section 11.1                            Applicability of Article.

 

The provisions of this Article shall be applicable to any sinking fund for the retirement of the Securities of a Series if so provided by the terms of such Securities pursuant to Section 2.2 and except as otherwise permitted or required by any form of Security of such Series issued pursuant to this Indenture.

 

The minimum amount of any sinking fund payment provided for by the terms of the Securities of any Series is herein referred to as a “mandatory sinking fund payment” and any other amount provided for by the terms of Securities of such Series is herein referred to as an “optional sinking fund payment.” If provided for by the terms of Securities of any Series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 11.2.  Each sinking fund payment shall be applied to the redemption of Securities of any Series as provided for by the terms of the Securities of such Series.

 

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Section 11.2                            Satisfaction of Sinking Fund Payments with Securities.

 

The Company may, in satisfaction of all or any part of any sinking fund payment with respect to the Securities of any Series to be made pursuant to the terms of such Securities (1) deliver outstanding Securities of such Series to which such sinking fund payment is applicable (other than any of such Securities previously called for mandatory sinking fund redemption) and (2) apply as credit Securities of such Series to which such sinking fund payment is applicable and which have been repurchased by the Company or redeemed either at the election of the Company pursuant to the terms of such Series of Securities (except pursuant to any mandatory sinking fund) or through the application of permitted optional sinking fund payments or other optional redemptions pursuant to the terms of such Securities, provided that such Securities have not been previously so credited.  Such Securities shall be received by the Trustee, together with an Officer’s Certificate with respect thereto, not later than 15 days prior to the date on which the Trustee begins the process of selecting Securities for redemption, and shall be credited for such purpose by the Trustee at the price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.  If as a result of the delivery or credit of Securities in lieu of cash payments pursuant to this Section 11.2, the principal amount of Securities of such Series to be redeemed in order to exhaust the aforesaid cash payment shall be less than $100,000, the Trustee need not call Securities of such Series for redemption, except upon receipt of a Company Order that such action be taken, and such cash payment shall be held by the Trustee or a Paying Agent and applied to the next succeeding sinking fund payment, provided, however, that the Trustee or such Paying Agent shall from time to time upon receipt of a Company Order pay over and deliver to the Company any cash payment so being held by the Trustee or such Paying Agent upon delivery by the Company to the Trustee of Securities of that Series purchased by the Company having an unpaid principal amount equal to the cash payment required to be released to the Company.

 

Section 11.3                            Redemption of Securities for Sinking Fund.

 

Not less than 45 days (unless otherwise indicated in the Board Resolution, supplemental indenture hereto or Officer’s Certificate in respect of a particular Series of Securities) prior to each sinking fund payment date for any Series of Securities, the Company will deliver to the Trustee an Officer’s Certificate specifying the amount of the next ensuing mandatory sinking fund payment for that Series pursuant to the terms of that Series, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by delivering and crediting of Securities of that Series pursuant to Section 11.2, and the optional amount, if any, to be added in cash to the next ensuing mandatory sinking fund payment, and the Company shall thereupon be obligated to pay the amount therein specified.  Not less than 30 days (unless otherwise indicated in the Board Resolution, Officer’s Certificate or supplemental indenture in respect of a particular Series of Securities) before each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 3.2 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 3.3.  Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Sections 3.4, 3.5 and 3.6.

 

IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of the day and year first above written.

 

	
 
    	
CoreSite   Realty Corporation
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
[   ],   as Trustee
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
				

 

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SIGNATURE PAGE TO INDENTURE

 

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