Document:

pnx_ex41.htm

EXHIBIT 4.1

 

First Supplemental Indenture

This FIRST SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of January 18, 2013, between The Phoenix Companies, Inc., a Delaware corporation (the “Company”), and U.S. Bank National Association, a national banking association, as successor trustee to SunTrust Bank, as Trustee (the “Trustee”), amends the Indenture, dated as of December 27, 2001, between the Company and the Trustee (the “Original Indenture”), pursuant to which $300,000,000 aggregate principal amount of the Company’s 7.45% Quarterly Interest Bonds due 2032 were issued (the “Securities”).  Capitalized terms used in this Supplemental Indenture and not defined are used with the meanings given to such terms in the Original Indenture.  This Supplemental Indenture is effective as of the date hereof.

RECITALS OF THE COMPANY

WHEREAS, Section 902 of the Original Indenture provides that, with the consent of the Holders of not less than a majority in principal amount of the Outstanding Securities affected by such supplemental indenture, by Act of said Holders delivered to the Company and the Trustee, the Company, when authorized by a Board Resolution, and the Trustee may enter into an indenture or indentures supplemental thereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of modifying in any manner the rights of the Holders of Securities under the Indenture; and

WHEREAS, the Company has received and delivered to the Trustee Acts of Holders evidencing consents of the Holders of not less than a majority in principal amount of the Outstanding Securities to the amendments to the Original Indenture set forth in this Supplemental Indenture (the “Amendments”); and

WHEREAS, the Company has also received and delivered to the Trustee Acts of Holders evidencing waivers, pursuant to Section 513 of the Original Indenture, from the Holders of a majority in aggregate principal amount of the Outstanding Securities of all defaults and Events of Default relating to the Securities and the Original Indenture and any defaults and Events of Default relating to the Securities and the Original Indenture that have occurred prior to the date hereof are deemed to have been cured for all purposes; and

WHEREAS, the Company has requested that the Trustee join with it in entering into this Supplemental Indenture for the purpose of effecting the Amendments as  permitted by Section 902 thereof and has furnished to the Trustee Board Resolutions authorizing the Amendments and this Supplemental Indenture, an Officers’ Certificate pursuant to Section 102 of the Original Indenture and an Opinion of Counsel pursuant to Sections 102 and 903 of the Original Indenture; and

WHEREAS, all other things necessary in order to execute and deliver this Supplemental Indenture and effect the amendments set forth herein have been obtained; and

 

  

  

  

NOW, THEREFORE, in order to amend the terms of the Original Indenture with respect to the Securities, and in consideration of the premises, it is mutually agreed by the Company and the Trustee, for the equal and ratable benefit of all Holders of the Securities, as follows:

1.           Definitions.  Section 101 of the Original Indenture is hereby amended to add the following definitions in their entirety in the appropriate alphabetical order:

“Consent Fee” means the payment defined as such with respect to the Securities in the Solicitation Documents.

“Covenant Reversion Date” means 5:30 p.m., New York City time, on the earlier of (i) the Business Day following the Company’s failure to pay the Consent Fee, if due, for the Securities in accordance with the Solicitation Documents, and (ii) March 31, 2013.

“Solicitation Documents” means the Consent Solicitation Statement, dated as of December 12, 2012, and the accompanying form of consent and waiver, each as may be amended and supplemented from time to time.

2.           Events of Default.

(a)           Section 501(3) of the Original Indenture is hereby amended to read in its entirety as follows:

(3) except as otherwise provided in this Section 501, default in the performance, or breach, of any covenant or warranty of the Company in this Indenture (other than a covenant or warranty a default in whose performance or whose breach is elsewhere in this Section specifically dealt with), and continuance of such default or breach 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 aggregate principal amount of the Outstanding Securities 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

(b)           The following language is hereby added at the end of Section 501 of the Original Indenture:

Notwithstanding any of the foregoing, the failure of the Company to comply with Sections 704 and 1004 of this Indenture on or prior to the Covenant Reversion Date shall not constitute an Event of Default under clause (3) above.

 

  

  

  

3.           Reports by Company.  Section 704 of the Original Indenture is hereby amended to read in its entirety as follows:

Section 704.  Reports by Company.

The Company shall, except as otherwise provided in this Section 704:

(1)           file with the Trustee, within 15 days after the Company is required to file the same with the Commission, 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 Commission may from time to time by rules and regulations prescribe) which the Company may be required to file with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; or, if the Company is not required to file information, documents or reports pursuant to either of said Sections, then it shall file with the Trustee and the Commission, in accordance with rules and regulations prescribed from time to time by the Commission, such of the supplementary and periodic information, documents and reports which may be required pursuant to Section 13 of the Exchange Act in respect of a security listed and registered on a national securities exchange as may be prescribed from time to time in such rules and regulations;

(2)           file with the Trustee and the Commission, in accordance with rules and regulations prescribed from time to time by the Commission, such additional information, documents and reports with respect to compliance by the Company with the conditions and covenants of this Indenture as may be required from time to time by such rules and regulations; and

(3)           transmit by mail, to all Holders, as their names and addresses appear in the Security Register, within 30 days after the filing thereof with the Trustee, such summaries of any information, documents and reports required to be filed by the Company pursuant to Clauses (1) and (2) of this Section as may be required by rules and regulations prescribed from time to time by the Commission.

Notwithstanding any other provision of this Section 704 or this Indenture, the documents and reports referred to in this Section 704 that the Company would have been required to file with the Trustee on any date on or before the Covenant Reversion Date, but for this sentence, will not be required to be filed by the Company until the Covenant Reversion Date, and the filing by the Company with the Commission of its Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 on or prior to the Covenant Reversion Date shall fully satisfy the requirement to file reports with the Trustee for any periods prior to the Covenant Reversion Date.

4.           Statement by Officers as to Default.  Section 1004 of the Original Indenture is hereby amended to read in its entirety as follows:

Section 1004.  Statement by Officers as to Default.

The Company will deliver to the Trustee, within 120 days after the end of each fiscal year of the Company ending after the date hereof, an Officers’ Certificate, stating whether or not to the best knowledge of the signers thereof the Company is in default in the performance and observance of any of the terms, provisions and conditions of this Indenture (without regard to any period of grace or requirement of notice provided hereunder) and, if the Company shall be in default, specifying all such defaults and the nature and status thereof of which they may have knowledge. Notwithstanding any other provision of this Section 1004 or this Indenture, the Company will have no obligation to deliver an Officer’s Certificate, as referred to in the preceding sentence, relating to the breach of a covenant contained in Sections 704 or 1004 of this Indenture that occurred prior to the Covenant Reversion Date.

 

 

  

  

  

5.           Miscellaneous.

(a)           Recitals by the Company.  The recitals contained in this Supplemental Indenture shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness.  The Trustee makes no representations as to the validity or sufficiency of this Supplemental Indenture.

(b)           Ratification and Incorporation of Original Indenture.  Except as amended hereby, the Original Indenture is in all respects ratified and confirmed, and all of the terms thereof shall remain in full force and effect.  The Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Original Indenture and, as provided in the Original Indenture, this Supplemental Indenture forms a part thereof for all purposes.  The Original Indenture and this Supplemental Indenture shall be read, taken and construed as one and the same instrument, and every Holder of Securities heretofore and hereafter authenticated and delivered under the Original Indenture shall be bound by the Original Indenture as amended hereby.

(c)           Execution in Counterparts.  This Supplemental Indenture may be executed in several counterparts, each of which shall be deemed to be an original, and such counterparts shall together constitute one and the same instrument.

(d)           Governing Law.  THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.

(e)           Successors and Assigns.  All covenants and agreements in this Supplemental Indenture of the Company shall bind its respective successors and assigns, whether so expressed or not.

(f)           Severability.  If any provision of this Supplemental Indenture shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

[Signature Page Follows]

 

 

  

  

  

IN WITNESS WHEREOF, each party hereto has caused this First Supplemental Indenture to be signed in its name and on its behalf by one of its duly authorized officers, to be effective as of the date first set forth above.

 

 

	 	

THE PHOENIX COMPANIES, INC.

	 
	 	 	 	 
	 	
By: 

	/s/ Bonnie J. Malley 	 
	 	Name:	Bonnie J. Malley	 
	 	Title: 	

Executive Vice President, Chief Financial Officer and Treasurer

	 
	 	 	 	 

	 	
U.S. BANK NATIONAL ASSOCIATION,

     as Trustee

	 
	 	 	 	 
	
 

	
By: 

	/s/ David Ferrell	 
	 	Name: 	David Ferrell	 
	 	Title:	Vice Presidentex10.1

  
 EXHIBIT 10.1
 

 

 CONSULTING AGREEMENT
 

 

 This CONSULTING AGREEMENT (hereinafter “Agreement”) is effective as of the 1st day of January 2013, by and between CONSOLIDATION SERVICES, INC., a Delaware corporation (the “Company”) and Richard S. Polep (the “Consultant”).
 

 Whereas, Consultant has served as Chief Financial Officer from August 8th 2011 until December 31, 2012, without an agreement or consideration. 
 

 Whereas, the Company wishes to compensate Consultant for fulfilling the role of CFO and would like to engage Consultant to remain in the role of CFO, for an additional period.
 

 NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties, intending to be bound legally, to the Agreement as follows:
 

 1.  Engagement.
 

 (a)
 The Company agrees to engage Consultant to perform the services of acting Chief Financial Officer (“CFO”) of the Corporation for the period commencing on January 1, 2013, through January 1, 2014 (the “Primary Term”), unless Consultant’s engagement under this Agreement is terminated or extended pursuant to Paragraphs 5, 6 or 7 of this Agreement.
 

 (b)
 Duties.  During the Term, Consultant shall serve as CFO of the Corporation and shall report to the CEO of the Corporation.  If requested by the Chairman of the Board of Directors of the Corporation, Consultant shall also serve, without additional compensation or as an acting officer or director of any subsidiary, affiliate or joint venture of the Corporation. Consultant shall perform such duties and services as are incidental to the positions he holds or as he may, from time to time, be requested to hold by the CEO of the Corporation.  The Consultant will devote attention, skill, and energy to the business of the Corporation, and will use his best efforts to promote the success of the Corporation’s business, and will cooperate fully in the advancement of the best interests of the Corporation.  Consultant will devote up to 20 hours weekly to the Corporation’s activities at the direction of the CEO.  Nothing in this Agreement, however, will prevent the Consultant from engaging in additional business activities, personal investments and community affairs that are not inconsistent with the Consultant’s duties under this Agreement.
 

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 (c)
 Primary Office.  Consultant’s primary office location shall be 2300 W. Sahara Ave. Suite 800 Las Vegas, Nevada.  Consultant is also authorized to work from a home office.
 

 2.  Compensation.
 

 (a)
 Past Compensation.  The Company shall issue and Consultant shall accept, as full compensation for serving as CFO of the Company from August 8th 2011 until December 31st 2012, four hundred thousand (400,000) shares of the Company’s common stock.
 

 (b)
 Forward Compensation.  The Company shall issue and Consultant shall accept, as full compensation for serving as CFO of the Company from January 1st 2013 until December 31st 2013, four hundred thousand (400,000) shares of the Company’s common stock.
 

 3.  Business Expense Reimbursement.
 

 Upon presentation of receipts by Consultant, the Company shall, within fifteen (15) business days, reimburse Consultant for all reasonable travel, entertainment and other similar business expenses incurred by him in the performance of his duties hereunder.
   
 5.  Termination of Engagement.
 

 (a)
 By Company.  Notwithstanding Section 1(a) of this Agreement, the Consultant’s engagement hereunder may be terminated by the Company, prior to the expiration of the Term of this Agreement, as follows:
 

 i.
 Automatically, upon the death of the Consultant.
 

 ii.
 On the date on which the Company notifies the Consultant of the termination of his engagement for Cause.  For purposes of this Agreement “Cause” shall mean:
 

 (1)
 Habitual neglect or insubordination (defined as a refusal to execute or carry out lawful and prudent directions from the Board) where Consultant has been given written notice of the acts or omissions constituting such neglect or insubordination and Consultant has failed to cure such conduct, within thirty (30) days following notice;
 

 

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 (2)
 Participation in any fraud against the Company.
 

 (b)
 By Consultant.  Notwithstanding Section 1(a) of this Agreement, Consultant may terminate the employment relationship prior to the expiration of the Term of this Agreement, as follows:
 

 i.
 By first giving the Company thirty (30) days’ advance notice of his intention to terminate his engagement; or 
 

 ii.
 In the event of a material breach of the Agreement or the engagement relationship by the Company, including non-timely payment for services      rendered, Consultant may terminate the Agreement without advance notice.
 

 6.  Consequences of Termination.
 

 Following the termination of Consultant’s Engagement pursuant to Paragraph 5, above, the Company shall have no further obligation to the Consultant. For any termination, voluntary or involuntary, the Company shall reimburse the Consultant for all reasonable expenses Consultant incurred in connection with his engagement and supported by receipts submitted to the Company within thirty (30) days of the date of separation.
 

 7.  Expiration and Renewal.
 

 Unless notice of termination is provided in accordance with Paragraphs 5, this Agreement shall continue for one (1) year, unless extended. Nothing shall preclude the parties from extending the Agreement for a longer period provided that it is acknowledged by a written document signed by both parties.
 

 8.  Assignment of Rights.
 

 The Company may assign all of its rights and obligations under this Agreement to any person or entity acquiring the principal assets used and useful in the operation of the Company provided such entity is financially able to honor the obligations to the Consultant under the terms of this Agreement, and the Company has secured the written consent of Consultant.
 

 

 

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 This Agreement shall not be terminated by Company’s voluntary or involuntary dissolution or by any merger in which Company is not the surviving or resulting corporation, or on any transfer of all or substantially all of the Company’s assets.  In the event of any such merger or transfer of assets, where the Consultant has provided his written consent, the provisions of this Agreement shall be binding on and inure to the benefit of the surviving business entity or the business entity to which assets shall be transferred.  The Company shall require a purchaser, buyer or assignee to fully assume the Company’s obligations set forth herein prior to the purchase or assignment.
 

 9.  Representations and Warranties.
 

 The Company represents and warrants to the Consultant that this Agreement has been duly authorized, executed and delivered by the Company, is the legal obligation of the Company and is enforceable as to the Company in accordance with its terms.
 

 10.  Governing Law.
 

 This Agreement shall be construed in accordance with and shall be governed by, the laws of the State of Delaware without giving effect to rules governing conflicts of law.
 

 11.  Entire Agreement.
 

 This Consulting Agreement contains the entire understanding and agreement between the parties relating to the subject matter hereto except as otherwise referred to herein, and supersedes any prior agreement between the parties, whether written or oral.  Neither this Agreement nor any provision hereof may be waived, modified, amended, changed, discharged or terminated, except by an agreement in writing, signed by the party against whom enforcement of any waiver, modification, change, amendment, discharge or termination is sought.  To the extent any employee handbook or similar policies of the Company are inconsistent with the Agreement, this Agreement shall control and govern.
 

 12.  Counterparts.
 

 This Agreement may be executed in counterparts, each of which shall be deemed an original, and such counterparts together shall constitute a single instrument.
 

 13.  Provisions Schedule.
 

 To the extent any one or more of the provisions of this Agreement shall be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby but shall remain in full force and effect.
 

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 14.  Headings.
 

 The section headings herein are for convenience only and shall not be used in interpreting or construing this Agreement.
 

 15.  Notices.
 

 Any notice required or permitted to be given under the provisions of this Agreement shall be in writing and shall be deemed to have been duly delivered and received (i) on the date of personal delivery, or (ii) on the date of receipt (as shown on the return receipt) if mailed by certified or registered mail, return receipt requested, postage prepaid, or sent by Federal Express or similar courier service, with all charges prepaid, in each case addressed to the following persons at the following addresses, or to such other person or other addressed to the following persons at the following addresses, or to such other person or other addresses as either party may designate by notice in writing to the other party to this Agreement.
 
 
 

 (a)
 To the Consultant
            
 Richard S. Polep 
 PO Box 491342
 Los Angeles, CA 90049
 

 

 (b)  To the Company:
 CONSOLIDATION SERVICES, INC.
 2300 W. Sahara Ave
 Suite 800
 Las Vegas, NV 89102
 Atten: Gary Kucher
 

 

 

 With a copy to:
 Elliot H. Lutzker 
 Davidoff Hutcher & Citron LLP 
 605 Third Ave., 34th Floor 
 New York, NY 10158 
 

 

 

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 16.  Agreement to Arbitrate.
 

 Any controversy or claim arising out of or relating to this Agreement, or breach of this Agreement, shall be settled by arbitration in accordance with the Arbitration rules of the American Arbitration Association, or any arbitral forum mutually agreed to in writing by the parties.  The arbitrator shall issue a written decision that will provide for any and all damages otherwise available in a court of law.  Judgment on the award rendered by arbitrator may be entered in any court having jurisdiction.    
 

 There shall be one arbitrator selected by the parties. The Company shall pay all fees and costs associated with the arbitration, including the attorney’s fees and costs of Consultant should the arbitrator conclude that the Company breached the Agreement in any respect, or Consultant is awarded any money, benefits or damages as a result of the arbitration.
 

 This Agreement does not create, and shall not be construed as creating any rights enforceable by any person not a party to this Agreement, other than as provided in Paragraph 8, assignment of rights.
 

 

 

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 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first hereinabove written.
 

 

 

 CONSOLIDATION SERVICES, INC.
 

 

 By:   /s/ Gary Kucher
   Gary Kucher, CEO
 

 

 Dated: 1/1/2013
 

 

 

 CONSULTANT
 

 

 By:  /s/ Richard S. Polep
   Richard S. Polep
 

 Dated: 1/1/2013
 

 

 

 

 

 

 

 

 

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