Document:

ex4_2.htm

    
      

    

    Exhibit
4.2

     

    KINDER
MORGAN MANAGEMENT, LLC

     

    KINDER
MORGAN G.P., INC.

    

    OFFICERS'
CERTIFICATE

    PURSUANT
TO SECTION 301 OF INDENTURE

     

     

    Each of
the undersigned, Kimberly A. Dang and David D. Kinder, the Vice President and
Chief Financial Officer and the Vice President and Treasurer, respectively, of
(i) Kinder Morgan Management, LLC (the "Company"), a Delaware limited liability
company and the delegate of Kinder Morgan G.P., Inc. and (ii) Kinder Morgan
G.P., Inc., a Delaware corporation and the general partner of Kinder Morgan
Energy Partners, L.P., a Delaware limited partnership (the "Partnership"), on
behalf of the Partnership, does hereby establish the terms of a series of senior
debt Securities of the Partnership under the Indenture relating to senior debt
Securities, dated as of January 31, 2003 (the "Indenture"), between the
Partnership and U.S. Bank National Association, as successor trustee to Wachovia
Bank, National Association (the "Trustee"), pursuant to resolutions adopted by
the Board of Directors of the Company, or a committee thereof, on July 16, 2008
and September 11, 2009 and in accordance with Section 301 of the Indenture, as
follows:

     

    1.           The
titles of the Securities shall be "5.80% Senior Notes due 2021" (the "2021
Notes") and "6.50% Senior Notes due 2039" (the "2039 Notes," and together with
the 2021 Notes, the "Notes");

     

    2.           The
aggregate principal amounts of the 2021 Notes and the 2039 Notes which initially
may be authenticated and delivered under the Indenture shall be limited to a
maximum of $400,000,000 and $600,000,000, respectively, except for Notes
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Notes pursuant to the terms of the Indenture, and
except that any additional principal amount of the Notes may be issued in the
future without the consent of Holders of the Notes so long as such additional
principal amount of Notes are authenticated as required by the
Indenture;

     

    3.           The
Notes shall be issued on September 16, 2009; the principal of the 2021 Notes
shall be payable on March 1, 2021, and the principal of the 2039 Notes shall be
payable on September 1, 2039; the Notes will not be entitled to the benefit of a
sinking fund;

     

    4.           The
2021 Notes shall bear interest at the rate of 5.80% per annum and the 2039 Notes
shall bear interest at the rate of 6.50% per annum, in each case which interest
shall accrue from September 16, 2009, or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, which dates shall be
March 1 and September 1 of each year, and such interest shall be payable
semi-annually in arrears on March 1 and September 1 of each year, commencing
March 1, 2010, to holders of record at the close of business on the February 15
or August 15, respectively, next preceding each such Interest Payment
Date;

     

    5.           The
principal of, premium, if any, and interest on, the Notes of each series shall
be payable at the office or agency of the Partnership maintained for that
purpose in the Borough of Manhattan, New York, New York; provided, however, that
at the option of the Partnership, payment of interest may be made from such
office in the Borough of Manhattan, New York, New York by check mailed to the
address of the person entitled thereto as such address shall appear in the
Security Register. If at any time there shall be no such office or agency in the
Borough of Manhattan, New York, New York, where the Notes may be presented or
surrendered for payment, the Partnership shall forthwith designate and maintain
such an office or agency in the Borough of Manhattan, New York, New York, in
order that the Notes shall at all times be payable in the Borough of Manhattan,
New York, New York.  The Partnership hereby initially designates the
Corporate Trust Office of the Trustee in the Borough of Manhattan, New York, New
York, as one such office or agency;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.           U.S.
Bank National Association, successor trustee to Wachovia Bank, National
Association, is appointed as the Trustee for the Notes, and U.S. Bank National
Association, and any other banking institution hereafter selected by the
officers of the Company, on behalf of the Partnership, are appointed agents of
the Partnership (a) where the Notes may be presented for registration of
transfer or exchange, (b) where notices and demands to or upon the Partnership
in respect of the Notes or the Indenture may be made or served and (c) where the
Notes may be presented for payment of principal and interest;

     

    7.           The
Notes of each series will be redeemable, at the Partnership's option, at any
time in whole, or from time to time in part, upon not less than 30 and not more
than 60 days notice mailed to each Holder of the Notes to be redeemed at the
Holder's address appearing in the Security Register, at a price equal to 100% of
the principal amount of the Notes to be redeemed plus accrued interest to the
Redemption Date, subject to the right of Holders of record on the relevant
Record Date to receive interest due on an Interest Payment Date that is on or
prior to the Redemption Date, plus a make-whole premium, if any.  In
no event will the Redemption Price ever be less than 100% of the principal
amount of the Notes being redeemed plus accrued interest to the Redemption
Date.

     

    The
amount of the make-whole premium on any Note, or portion of a Note, to be
redeemed will be equal to the excess, if any, of:

     

    
      	
               
      

            	
              (1)

            	
              the
      sum of the present values, calculated as of the Redemption Date,
      of:

            

    

     

    
      	
               
      

            	
              •

            	
              each
      interest payment that, but for the redemption, would have been payable on
      the Note, or portion of a Note, being redeemed on each interest payment
      date occurring after the Redemption Date, excluding any accrued interest
      for the period prior to the Redemption Date;
and

            

    

     

    
      	
               
      

            	
              •

            	
              the
      principal amount that, but for the redemption, would have been payable at
      the stated maturity of the Note, or portion of a Note, being
      redeemed;

            

    

     

    over

     

    
      	
               
      

            	
              (2)

            	
              the
      principal amount of the Note, or portion of a Note, being
      redeemed.

            

    

     

    The
present value of interest and principal payments referred to in clause (1) above
will be determined in accordance with generally accepted principles of financial
analysis. The present values will be calculated for each series by discounting
the amount of each payment of interest or principal from the date that each such
payment would have been payable, but for the redemption, to the Redemption Date
at a discount rate equal to the Treasury Yield, as defined below, plus 0.375% in
the case of the 2021 Notes and 0.375% in the case of the 2039
Notes.

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    The
make-whole premium will be calculated by an independent investment banking
institution of national standing appointed by the Partnership.  If the
Partnership fails to make that appointment at least 30 business days prior to
the redemption date, or if the institution so appointed is unwilling or unable
to make the calculation, the financial institution named in the Notes will make
the calculation. If the financial institution named in the Notes is unwilling or
unable to make the calculation, an independent investment banking institution of
national standing appointed by the Trustee will make the
calculation.

     

    For
purposes of determining the make-whole premium, Treasury Yield refers to an
annual rate of interest equal to the weekly average yield to maturity of United
States Treasury Notes that have a constant maturity that corresponds to the
remaining term to maturity of the Notes to be redeemed, calculated to the nearer
1/12 of a year (the "Remaining Term"). The Treasury Yield will be determined as
of the third business day immediately preceding the applicable redemption
date.

     

    The
weekly average yields of United States Treasury Notes will be determined by
reference to the most recent statistical release published by the Federal
Reserve Bank of New York and designated "H.15(519) Selected Interest Rates" or
any successor release (the "H.15 Statistical Release"). If the H.15 Statistical
Release sets forth a weekly average yield for United States Treasury Notes
having a constant maturity that is the same as the Remaining Term of the Notes
to be redeemed, then the Treasury Yield will be equal to that weekly average
yield. In all other cases, the Treasury Yield will be calculated by
interpolation, on a straight-line basis, between the weekly average yields on
the United States Treasury Notes that have a constant maturity closest to and
greater than the Remaining Term of the Notes to be redeemed and the United
States Treasury Notes that have a constant maturity closest to and less than the
Remaining Term, in each case as set forth in the H.15 Statistical Release. Any
weekly average yields so calculated by interpolation will be rounded to the
nearer 0.01%, with any figure of 0.0050% or more being rounded upward. If weekly
average yields for United States Treasury Notes are not available in the H.15
Statistical Release or otherwise, then the Treasury Yield will be calculated by
interpolation of comparable rates selected by the independent investment banking
institution.

     

    If less
than all of the Notes of a series are to be redeemed, the Trustee will select
the Notes to be redeemed by a method that the Trustee deems fair and
appropriate. The Trustee may select for redemption Notes and portions of Notes
in amounts of $1,000 or whole multiples of $1,000.

     

    8.           Payment
of principal of, and interest on, the Notes shall be without deduction for
taxes, assessments or governmental charges paid by Holders of the
Notes;

     

    9.           The
Notes of each series are approved in the form attached hereto as Exhibit A and shall
be issued upon original issuance in whole in the form of one or more book-entry
Global Securities, and the Depositary shall be The Depository Trust Company;
and

     

    10.         The
Notes of each series shall be entitled to the benefits of the Indenture,
including the covenants and agreements of the Partnership set forth therein,
except to the extent expressly otherwise provided herein or in the Notes of such
series.

     

    Any
initially capitalized terms not otherwise defined herein shall have the meanings
ascribed to such terms in the Indenture.

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, each of the undersigned has hereunto signed his or her name
this 11th day of September, 2009.

     

     

    
      	 
      	

              /s/
      Kimberly A. Dang

            
	 
      	
              Kimberly
      A. Dang

            
	 
      	
              Vice
      President and Chief Financial Officer

            
	 
      	 
      
	 
      	 
      
	 
      	/s/
      David D. Kinder
	 
      	
              David
      D. Kinder

            
	 
      	
              Vice
      President and Treasurer

            

    

    
 

    -4-ex10_1.htm

    
      
        

      
Exhibit 10.1

      

       

      
        	 
      	
                U.S. Department of
      Justice

              
		 
      
	
                United
      States Attorney

              
	
                Southern
      District of New York

              
	 
      
	 	 
	 
      	 
      
	 
      	 
      
	 
      	
                The
      Silvio J. Mollo Building

              
	 
      	
                One
      Saint Andrew's Plaza

              
	 
      	
                New
      York, New York 10007

              
	 
      	 
      
	 
      	 
      
	 
      	
                October
      29, 2009

              

      

      

       

      Via
Federal Express

      Melinda
Sarafa, Esq.

      Sarafa
Law LLC

      80 Pine
Street, Floor 33

      New York,
NY 10005

      

       

      Behnam
Dayanim, Esq.

      Paul,
Hastings, Janofsky & Walker LLP

      875
15th
Street, NW

      Washington,
DC 20005

       

       

      
        	
                 
      

              	
                Re:

              	
                Optimal Group
      Non-Prosecution Agreement

              

      

       

      Dear
Madam and Sir:

       

      On the
understandings specified below, the Office of the United States Attorney for the
Southern District of New York (the "Office") will not criminally prosecute
Optimal Group Inc. or its subsidiaries (collectively, "Optimal") for any crimes
(except for criminal tax violations, as to which this Office cannot and does not
make any agreement) related to processing by Optimal, its predecessors, or
acquired companies of internet gambling related transactions originating from
customers in the United States through and including 2006. This conduct is
described more fully in the Statement of Facts, attached hereto as Exhibit A,
which is incorporated by reference herein. This Agreement is entered into by
Optimal pursuant to authority conveyed by resolution of the Board of Directors
of Optimal. A copy of this resolution is attached hereto as Exhibit
B.

       

      Moreover,
if Optimal fully complies with the understandings specified in this Agreement,
no information provided to the Office or at its request by or on behalf of
Optimal (or any other information directly or indirectly derived therefrom) will
be used against Optimal in any criminal tax prosecution. This Agreement does not
provide any protection against prosecution for any crimes except as set forth
above, and applies only to Optimal and not to any other entities or any
individuals. Optimal expressly understands that the protections provided to
Optimal by this Agreement shall not apply to any successor entities, whether the
successor's interest arises through a merger or plan of reorganization or
otherwise, unless and until such successor formally adopts and executes this
Agreement. The protections arising from this Agreement will not apply to any
purchaser of all or substantially all of the assets of Optimal, unless such
purchaser enters into a written agreement, on terms acceptable to this Office,
agreeing in substance to undertake all of the obligations set forth in the
"Continuing Obligation to Cooperate" section of this Agreement, set forth
below.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Melinda
Sarafa, Esq

      Behnam
Dayanim, Esq.

      October
29, 2009

      Page
2

      

       

      Continuing
Obligation To Cooperate

       

      Optimal
acknowledges and understands that the cooperation it has provided to date in
connection with a criminal investigation by this Office, and its pledge of
continuing cooperation, are important and material factors underlying this
Office's decision to enter into this Agreement. Accordingly, Optimal agrees to
cooperate fully and actively with the Office, the Federal Bureau of
Investigation (the "FBI"), and any other agency of the government designated by
the Office (including the FBI, the "Designated Agencies") regarding any matter
relating to the Office's investigation about which Optimal has knowledge or
information.

       

      In this
regard, it is understood that, in connection with any matter relating to
Optimal's business and operations Optimal: (a) shall truthfully and completely
disclose all information with respect to the activities of Optimal, its officers
and employees, and others concerning all such matters about which this Office
inquires, which information can be used for any purpose, except as limited by
the second paragraph of this Agreement; (b) shall cooperate fully with this
Office and the Designated Agencies; (c) shall, at the Office's request, use its
best efforts to assist this Office in any prosecution or investigation by
providing logistical and technical support for any meeting, interview, grand
jury proceeding, or any trial or other court proceeding; (d) shall at the
Office's request, use its best efforts promptly to secure the attendance and
truthful statements or testimony of any officer, agent, employee, or former
officer, agent or employee, at any meeting or interview or before the grand jury
or at any trial or other court proceeding; (e) shall use its best efforts
promptly to provide to this Office, upon request, any document, record, or other
tangible evidence relating to this Office's continuing investigation in this and
related internet gambling-related matters about which this Office or one or more
of the Designated Agencies may inquire, and will assemble and organize
documents, records, information, and other evidence in Optimal's possession,
custody, or control as may be requested by the Office or the Designated
Agencies; and (f) shall bring to this Office's attention all criminal conduct by
and criminal investigations of Optimal or its employees that come to the
attention of Optimal's board of directors or senior management, as well as any
administrative proceeding, civil action or other proceeding brought by any
governmental authority in which Optimal is a party, related to the operation or
management of Optimal's business. It is further understood that Optimal shall
commit no crimes whatsoever. Moreover, any assistance that Optimal may provide
to federal criminal investigators shall be pursuant to the specific instructions
and control of this Office and designated investigators. Optimal's obligations
under this paragraph shall continue until the later of (1) a period of three
years from the date of the signing of this Agreement or (2) the date on which
all prosecutions arising out of the conduct described in the opening paragraph
of this Agreement are final.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Melinda
Sarafa, Esq

      Behnam
Dayanim, Esq.

      October
29, 2009

      Page
3

      

       

      Forfeiture/Disgorgement
Obligations

       

      Optimal
agrees that it will pay a total of $ 19,182,418.18 (the "Property") to the
United States as part of this Agreement, as property involved in or proceeds
received from the activities described in the Statement of Admitted Facts, all
of which will be forfeited to the United States. The Property will be subject of
a civil forfeiture complaint to be filed against Optimal in the United States
District Court for the Southern District of New York. Optimal and this Office
agree that the $19,182,418.18 seized to date by this Office shall be applied to
satisfy Optimal's forfeiture obligation under this paragraph. Optimal agrees
that it will not file a claim with the Court or otherwise contest any civil
forfeiture action and will not assist a third party in asserting any claim
against the Property. It is further understood that Optimal will not file or
assist anyone in filing a petition for remission or mitigation with the
Department of Justice concerning the Property.

       

      Additional
Obligations

       

      It is
understood that, should Optimal commit any crimes subsequent to the date of the
signing of this Agreement or fail to comply with its forfeiture/disgorgement
obligations as described above, or should it be determined that Optimal or any
of its representatives have given false, incomplete, or misleading testimony or
information, or has otherwise violated any provision of this Agreement, (a)
Optimal shall thereafter be subject to prosecution for any federal offense of
which this Office has knowledge, including perjury and obstruction of justice;
(b) all statements made by Optimal's representatives to this Office, or one or
more of the Designated Agencies, including but not limited to the appended
Statement of Facts, and any testimony given by Optimal's representatives before
a grand jury subsequent to the signing of this Agreement, and any leads from
such statements or testimony, shall be admissible in evidence in any criminal
proceeding brought against Optimal and relied upon as evidence to support any
penalty imposed on Optimal; and (c) Optimal shall assert no claim under the
United States Constitution, any statute, Rule 410 of the Federal Rules of
Evidence, or any other federal rule that such statements or any leads therefrom
should be suppressed. In addition, any such prosecution that is not time-barred
by the applicable statute of limitations on the date of the execution of this
Agreement may be commenced against Optimal, notwithstanding the expiration of
the statute of limitations between the signing of this Agreement and the
commencement of such prosecution. It is the intent of this Agreement to waive
all defenses based on the statute of limitations with respect to any prosecution
that is not time-barred on the date that this Agreement is
signed.

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      Melinda
Sarafa, Esq

      Behnam
Dayanim, Esq.

      October
29, 2009

      Page
4

       

       

      It is
understood that Optimal acknowledges and accepts as accurate the facts set forth
in the Statement of Facts attached as Exhibit A, which is incorporated by
reference herein. Optimal hereby agrees to maintain, with respect to its
operations, a permanent restriction on providing payment processing services for
gambling merchants in connection with customers in the United States in
violation of the law of the United States or the law of any jurisdiction within
the United States.

       

      It is
understood that this Agreement does not bind any federal, state, or local
agencies, any licensing authorities, or any regulatory authorities. If requested
by Optimal, this Office will, however, bring the cooperation and remedial
actions of Optimal to the attention of other prosecuting and other investigative
offices or other licensing or regulatory authorities.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Melinda
Sarafa, Esq

      Behnam
Dayanim, Esq.

      October
29, 2009

      Page
5

      

       

      With
respect to this matter, this Agreement supersedes all prior understandings,
promises and/or conditions between this Office and Optimal. No additional
promises, agreements, and conditions have been entered into other than those set
forth in this letter and none will be entered into unless in writing and signed
by all parties.

       

       

      
        	 
      	 
      	 
      	
                Very
      truly yours,

              	 
	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	
                PREET
      BHARARA

              	 
	 
      	 
      	 
      	
                United
      States Attorney

              	 
	 
      	 
      	 
      	
                Southern
      District of New York

              	 
	 
      	 
      	 
      	 
      	 
	 
      	 
      	
                By:

              	
                /s/
      Arlo Devlin-Brown

              	 
	 
      	 
      	 
      	
                Arlo
      Devlin-Brown

              	 
	 
      	 
      	 
      	
                Jonathan
      New

              	 
	 
      	 
      	 
      	
                Assistant
      United States Attorneys

              	 
	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	
                /s/
      Richard Zabel

              	 
	 
      	 
      	 
      	
                Richard
      Zabel

              	 
	 
      	 
      	 
      	
                Chief,
      Criminal Division

              	 
	 
      	 
      	 
      	 
      	 
	
                AGREED
      AND CONSENTED TO:

              	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
      	 
	
                /s/
      Neil Wechsler

              	 
      	 
      	
                October
      30, 2009

              	 
	
                Pursuant
      to Authority Conveyed By Resolution of the Board of Directors of
      Optimal

              	 
      	 
      	
                Date

              	 
	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
      	 
	
                APPROVED:

              	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
      	 
	
                /s/
      Melinda Sarafa, Esq.

              	 
      	 
      	
                October
      30, 2009

              	 
	
                Melinda
      Sarafa, Esq.

              	 
      	 
      	
                Date

              	 
	
                Behnam
      Dayanim, Esq.

              	 
      	 
      	 
      	 

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Exhibit
A

      

       

      STATEMENT OF
FACTS

       

      Corporate
History and Structure

       

      
        	
                 
      

              	
                1.

              	
                Optimal
      Group Inc. ("Optimal") is a Canadian corporation established in 1984.
      Under its previous name of Optimal Robotics Corp., Optimal was a provider
      of self-checkout systems to retailers and, through wholly-owned
      subsidiaries, of repair and field services to retail, financial services
      and other third-party accounts.

              

      

       

      
        	
                 
      

              	
                2.

              	
                In
      2004, following the sale of its self-checkout business and to reposition
      its business activities, Optimal acquired Terra Payments Inc. (formerly
      SureFire Commerce Inc.), a provider of payment processing and electronic
      commerce services. In conjunction with this acquisition, Optimal changed
      its name from Optimal Robotics Corp. to Optimal Group
  Inc.

              

      

       

      
        	
                 
      

              	
                3.

              	
                Following
      its acquisition by Optimal, Terra Payments became a wholly-owned
      subsidiary of Optimal known as Optimal Payments Inc. The Optimal Payments
      group of companies provided payment processing services to a variety of
      merchants, including Internet gambling merchant websites. In May 2005, the
      Optimal Payments group assets relating to the processing of transactions
      involving Internet gambling merchant websites were transferred to FireOne
      Group plc, a newly-established, Ireland-based affiliate of Optimal
      Payments. In June 2005, in conjunction with the public placement of 20% of
      FireOne Group's issued and outstanding share capital, the shares of
      FireOne Group began trading on the Alternative Investment Market ("AIM")
      of the London Stock Exchange.

              

      

       

      Payment
Processing Business (Optimal Payments/FireOne Group)

       

      
        	
                 
      

              	
                4.

              	
                Optimal's
      payment processing subsidiaries provided technology and services required
      by businesses to accept credit card, electronic check and direct debit
      payments. Such technology and services were provided for Internet
      businesses, including Internet gambling merchant websites,
      mail-order/telephone-order and retail point-of-sale
    merchants.

              

      

       

      
        	
                 
      

              	
                5.

              	
                Through
      its subsidiaries, Optimal processed payment transactions in connection
      with Internet gambling merchant websites through the use of credit and
      debit cards, electronic debit and a stored-value, electronic wallet known
      as FirePay. The Internet gambling websites were located outside of the
      United States. A substantial majority of the transactions in connection
      with Internet gambling merchant websites originated from customers located
      in the United States, including in the Southern District of New
      York.

              

      

       

      
        	
                 
      

              	
                6.

              	
                Optimal
      continued to process transactions originating from U.S. customers in
      connection with Internet gambling merchant websites until October 13,
      2006, the day the Unlawful Internet Gambling Enforcement Act ("UIGEA") was
      signed into law. On that date, Optimal stopped all transfers of U.S.
      customer funds to Internet gambling merchant websites. Shortly thereafter,
      Optimal voluntarily agreed to cooperate with the United States Attorney's
      Office for the Southern District of New York in its investigation of
      unlawful Internet gambling.

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                7.

              	
                From
      April 2004, when Optimal acquired Terra Payments, through December 2004,
      Optimal's subsidiaries processed a total of approximately $1.4 billion in
      payment transactions. Of this amount, $610 million consisted of
      transactions involving Internet gambling merchant websites, generating
      revenue of $32.8 million. Of the transactions involving Internet gambling
      merchant websites, approximately 80% originated from U.S.
      customers.

              

      

       

      
        	
                 
      

              	
                8.

              	
                During
      the year 2005, Optimal's subsidiaries processed a total of approximately
      $5.5 billion in payment transactions. Of this amount, $1.2 billion
      consisted of transactions involving Internet gambling merchant websites,
      generating revenue of $76.3 million. Of the transactions involving
      Internet gambling merchant websites, approximately 83% originated from
      U.S. customers.

              

      

       

      
        	
                 
      

              	
                9.

              	
                During
      the year 2006, Optimal's subsidiaries processed a total of approximately
      $7.4 billion in payment transactions. Of this amount, $1.3 billion
      consisted of transactions involving Internet gambling merchant websites,
      generating revenue of $84.2 million. Of the transactions involving
      Internet gambling merchant websites, approximately 82% originated from
      U.S. customers.

              

      

       

      
        	
                 
      

              	
                10.

              	
                After
      Optimal ceased processing U.S. customer transactions involving Internet
      gambling merchant websites, Optimal disposed of substantially all of the
      assets of its payment processing business, including the entirety of the
      business formerly operated by Terra Payments. Today, through its
      subsidiaries (WowWee Group Limited and related companies), Optimal is
      principally a toy and consumer electronics
  business.

              

      

       

      
        	
                 
      

              	
                11.

              	
                Optimal
      knew that its payment processing services were being provided to U.S.
      customers in connection with Internet gambling merchant websites. Optimal
      recognizes that the services provided by the Internet gambling merchant
      websites, for which Optimal's subsidiaries provided payment processing
      services, violated certain United States laws, including 18 U.S.C. § 1084
      and 18 U.S.C. § 1955.

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Exhibit B

       

       

      OPTIMAL GROUP
INC.

       

      CERTIFIED
RESOLUTION

      

       

      I do
herby certify that the following is a true and complete copy of a resolution of
the Board of Directors of Optimal Group Inc. (the "Corporation") adopted at a
meeting of the Directors duly convened and held on October 30,
2009:

       

      "WHEREAS the Board deems it to be in the best
interest of the Corporation to enter into a non-prosecution agreement with the
Office of the United States Attorney for the Southern District of New York,
substantially in the form reviewed by the Directors, including the Statement of
Facts to be annexed thereto.

       

      NOW,
THEREFORE, BE IT RESOLVED:

       

      THAT the entering into of a
non-prosecution agreement with the Office of the United States Attorney for the
Southern District of New York, substantially in the form reviewed by the
Directors, including the Statement of Facts to be annexed thereto, be and it is
hereby approved; and

       

      THAT either of the Co-Chairmen
of the Corporation, acting alone, be and is hereby authorized and empowered, for
and on behalf of the Corporation, to execute and deliver the non-prosecution
agreement with such additions, deletions or other changes as such Co-Chairman
may approve, such approval to be evidenced by his execution and delivery of the
non-prosecution agreement.

      

       

      CERTIFIED
at Montreal, this 30th day of October 2009.

       

      

      
        	
                /s/
      Leon Garfinkle

              	 
      
	
                Leon
      Garfinkle

              	 
      
	
                Senior
      Vice-President,

              	 
      
	
                General
      Counsel and Secretary

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