Document:

ex4-2.htm

Exhibit 4.2

 

 

 

NORFOLK SOUTHERN CORPORATION

 

as Issuer

 

and

 

U.S. BANK TRUST NATIONAL ASSOCIATION,

 

as Trustee

­______________

 

TWELFTH SUPPLEMENTAL INDENTURE

 

Dated as of August 26, 2010

 

to

 

INDENTURE

 

Dated as of January 15, 1991

______________

 

6% Senior Notes due 2105

 

  

  

  

 

TWELFTH SUPPLEMENTAL INDENTURE dated as of August 26, 2010, (the "Twelfth Supplemental Indenture"), between Norfolk Southern Corporation, a Virginia corporation (the "Corporation"), and U.S. Bank Trust National Association, formerly known as First Trust of New York National Association, as successor trustee to Morgan Guaranty Trust Company of New York (the "Trustee"), under the Indenture, dated as of January 15, 1991, between the Corporation and the Trustee (the "Base Indenture"), as amended by the Second Supplemental Indenture, dated as of April 26, 1999, between the Corporation and the Trustee (as so amended, the "Amended Base Indenture").

 

 

WHEREAS, pursuant to Sections 301 and 801 of the Amended Base Indenture,  the execution and delivery of the Ninth Supplemental Indenture dated as of March 11, 2005 between the Corporation and the Trustee (the "Ninth Supplemental Indenture") established and authorized the issuance of the Corporation's 6% Senior Notes due 2105, a new series of debt securities initially limited to an aggregate principal amount of $300,000,000 (the "2105 Series");

 

 

WHEREAS, on March 11, 2005 the Corporation issued $300,000,000 aggregate principal amount of debt securities of the 2105 Series (the "Prior Notes");

 

 

WHEREAS, Section 801(10) of the Amended Base Indenture provides that a supplemental indenture may be entered into without the consent of the holders of any notes by the Corporation and the Trustee for the purpose of issuing additional debt securities of a series previously authorized;

 

 

WHEREAS, Section 201 of the Ninth Supplemental Indenture contemplates the reopening of the 2105 Series;

 

 

WHEREAS, the Corporation desires to reopen the 2105 Series and has requested the Trustee to join it in the execution and delivery of this Twelfth Supplemental Indenture in connection with the issuance by the Corporation of an additional $250,000,000 principal amount of debt securities of the 2105 Series (the "Additional Notes," and, together with the "Prior Notes," the "Notes"), the form and substance of such Additional Notes and the terms, provisions and conditions thereof being identical, except to the limited extent set forth herein, to the form, substance, terms, provisions and conditions of the Prior Notes, as provided in the Ninth Supplemental Indenture, and the Additional Notes shall be part of the 2105 Series;

 

 

WHEREAS, all things necessary to make this Supplemental Indenture a valid agreement of the Corporation and the Trustee, in accordance with its terms, and a valid supplemental indenture to the Amended Base Indenture have been done;

 

 

NOW THEREFORE, in consideration of the purchase and acceptance of the Additional Notes by the Holders thereof, and for the purpose of setting forth, as provided in the Amended Base Indenture, the form and substance of the Additional Notes and the terms, provisions and conditions thereof, the Corporation covenants and agrees with the Trustee as follows:

 

  

  

  

 

ARTICLE I

 

Scope of Supplemental Indenture; General

 

SECTION 101.  Scope of Supplemental Indenture; General. This Supplemental Indenture supplements the provisions of the Amended Base Indenture and the Ninth Supplemental Indenture. Unless the context otherwise, requires, capitalized terms used but not defined herein have the meaning set forth in the Amended Base Indenture and the Ninth Supplemental Indenture.

 

ARTICLE II

 

Additional Notes

 

SECTION 201.  Designation and Authorization. The issuance of the Additional Notes is hereby authorized, and such Additional Notes shall be registered in the names of such Persons as shall be set forth in any written order of the Corporation for the authentication and delivery of Additional Notes pursuant to Section 303 of the Amended Base Indenture. The Additional Notes and the Prior Notes shall constitute a single series of debt securities under the Amended Base Indenture; and accordingly the authorized aggregate principal amount of the Securities of the 2105 Series is hereby limited to $550,000,000 (unless the 2105 Series is further "reopened" pursuant to Section 801(10) of the Amended Base Indenture by the issuance of additional debt Securities of the 2105 Series) and the terms and provisions of the Ninth Supplemental Indenture are hereby incorporated by reference into this Twelfth Supplemental Indenture and shall apply equally to the Additional Notes and the Prior Notes (including, without limitation, the restrictive covenants and the redemption provisions pursuant to Articles III and IV, respectively, of the Ninth Supplemental Indenture), other than the issue date, first date of interest accrual and first interest payment date of the Additional Notes, which shall be as set forth in the form of Additional Note attached hereto as Exhibit A.

 

ARTICLE III

 

Miscellaneous

 

SECTION 301.  Ratification of Amended Base Indenture, Ninth Supplemental Indenture and Twelfth Supplemental Indenture. The Amended Base Indenture and the Ninth Supplemental Indenture, as supplemented by this Twelfth Supplemental Indenture, are in all respects ratified and confirmed, and this Twelfth Supplemental Indenture shall be deemed part of the Amended Base Indenture in the manner and to the extent herein and therein provided.

 

  

  

  

 

SECTION 302.  Trustee Not Responsible for Recitals. The recitals herein contained are made by the Corporation and not by the Trustee, and the Trustee assumes no responsibility for the correctness thereof. The Trustee makes no representation as to the validity or sufficiency of this Twelfth Supplemental Indenture.

 

SECTION 303.  Governing Law. This Twelfth Supplemental Indenture and the Notes shall be construed in accordance with and governed by the laws of the State of New York.

 

SECTION 304.  Separability. In case any one or more of the provisions contained or incorporated by reference in this Twelfth Supplemental Indenture or in the Notes shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Twelfth Supplemental Indenture or of the Notes, but this Twelfth Supplemental Indenture and the Notes shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein or therein.

 

SECTION 305.  Counterparts. This Twelfth Supplemental Indenture may be executed in any number of counterparts each of which shall be an original; but such counterparts shall together constitute but one and the same instrument.

 

  

  

  

IN WITNESS WHEREOF, the parties have caused this Twelfth Supplemental Indenture to be duly executed as of the date first written above.

 

	  	
NORFOLK SOUTHERN CORPORATION

 

	  	
By

	  	  	             /s/ Marta R. Stewart	
 

	  	  	
Name: Marta R. Stewart

Title:   Vice President and Treasurer

Attest:

	
By:

	
  /s/ Howard D. McFadden

	  
	
Name:

	
Howard D. McFadden

	  
	
Title:

	
Corporate Secretary

	  

	  	
U.S. BANK TRUST NATIONAL

ASSOCIATION, as Trustee

 

	  	
By

	  	  	
/s/ Patrick J. Crowley

	
 

	  	  	
Name: Patrick J. Crowley

Title:   Vice President

Attest:

	
By:

	
  /s/ Barbara A. Nastro

	  
	
Name:

	
Barbara A. Nastro

	  
	
Title:

	
Vice President

	  

 

 

[Signature Page to Twelfth Supplemental Indenture]

  

  

  

 

EXHIBIT A

 

(FORM OF FACE OF NOTE)

 

         This Note is a Global Note within the meaning of the Amended Base Indenture hereinafter referred to and is registered in the name of the Depositary or a nominee of the Depositary. This Note is exchangeable for Notes registered in the name of a person other than the Depositary or its nominee only in the limited circumstances described in the Amended Base Indenture, and no transfer of this Note (other than a transfer of this Note as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary) may be registered except in limited circumstances.

 

         Unless this Note is presented by an authorized representative of The Depository Trust Company, a New York Corporation ("DTC"), to the issuer or its agent for registration of transfer, exchange or payment, and any Note issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

 

  

1

  

 

	
No. ______

 

	
CUSIP No. 655844 A V0

 

 

 

NORFOLK SOUTHERN CORPORATION

 

NOTE

 

DUE MARCH 15, 2105

 

(6% Senior Notes due 2105)

 

 

         NORFOLK SOUTHERN CORPORATION, a corporation organized under the laws of the Commonwealth of Virginia (herein called the "Corporation", which term includes any successor corporation under the Amended Base Indenture (as defined below) hereinafter referred to), for value received, hereby promises to pay to ___________________, or registered assigns, the principal sum of ________________ Dollars ($________) on March 15, 2105 and to pay interest thereon from March 15, 2010 or from the most recent interest payment date to which interest has been paid or duly provided for, semi-annually in arrears on March 15 and September 15 of each year, commencing September 15, 2010, at a rate of 6% per annum until the principal hereof is paid or made available for payment, and on any overdue principal and premium, if any, at a rate of 6% per annum and (without duplication and to the extent that payment of such interest is enforceable under applicable law) on any overdue installment of interest at a rate of 6% per annum compounded semi-annually. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date (as defined below) shall be calculated as provided in the Amended Base Indenture. In the event that any date on which interest is payable on this Note is not a Business Day, then payment of interest payable on such date will be made on the next succeeding day that is a Business Day, with the same force and effect as if made on such date and no interest shall accrue on the amount so payable from the period from and after such Interest Payment Date or Maturity Date, as the case may be (each date on which interest is actually payable, an "Interest Payment Date"). The interest installment so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Amended Base Indenture, be paid to the Person in whose name this Note (or one or more Predecessor Security, as defined in said Amended Base Indenture) is registered at the close of business on the regular record date for such interest installment, which shall be the close of business on the March 1 and September 1 next preceding such Interest Payment Date. Any such interest installment not punctually paid or duly provided for shall forthwith cease to be payable to the registered Holders on such regular record date and may be paid to the Person in whose name this Note (or one or more Predecessor Security) is registered at the close of business on a special record date to be fixed by the Trustee for the payment of such defaulted interest, notice whereof shall be given to the registered Holders of Notes not less than 10 days prior to such special record date, or may be paid at any time in any other lawful manner not inconsistent with

 

  

2

  

 

the requirements of any securities exchange on which this Note may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Amended Base Indenture. The principal of (and premium, if any) and the interest on this Note shall be payable at the office or agency of the Trustee maintained for that purpose in any coin or currency of the United States of America that at the time of payment is legal tender for payment of public and private debts; provided, however, that payment of interest may be made, at the option of the Corporation and upon prior notice to the Trustee, by check mailed to the registered Holder at such address as shall appear in the Security Register or by wire transfer to an account designated by a Holder in writing not less than 10 days prior to the date of payment.

 

         The indebtedness evidenced by this Note is, to the extent provided in the Amended Base Indenture, equal in right of payment with all other unsecured and unsubordinated indebtedness of the Corporation, and this Note is issued subject to the provisions of the Indenture (as defined below). Each Holder of this Note, by accepting the same, agrees to and shall be bound by such provisions, and authorizes and directs the Trustee on his or her behalf to be bound by such provisions. Each Holder hereof, by his or her acceptance hereof, hereby waives all notice of the acceptance of the provisions contained herein and in the Indenture by each Holder of unsecured and unsubordinated indebtedness of the Corporation, whether now outstanding or hereafter incurred, and waives reliance by each such Holder or creditor upon said provisions.

 

         This Note shall not be entitled to any benefit under the Indenture, or be valid or become obligatory for any purpose until the Certificate of Authentication hereon shall have been signed by or on behalf of the Trustee.

 

         The provisions of this Note are continued on the reverse side hereof and such continued provisions shall for all purposes have the same effect as though fully set forth at this place.

 

 

------------------------------------------------------------

 

 

  

3

  

 

 

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

 

 

	  	
NORFOLK SOUTHERN CORPORATION

 

	  	
By:

	  	  
	 	 	
Name:

	 
	 	 	
Title:

	 

 

Attest:

	
By:

	  	  
	
Name:

	  	  
	
Title:

	
Secretary or Assistant Secretary

	  

 

(FORM OF CERTIFICATE OF AUTHENTICATION)

 

CERTIFICATE OF AUTHENTICATION

 

         This is one of the Securities (as defined below) of the series designated therein referred to in the within-mentioned Amended Base Indenture.

 

U.S. BANK TRUST NATIONAL ASSOCIATION, as Trustee

 

 

	
By:

	  	  

 

Authorized Officer

 

	
Dated:

	  	  

    ------------------------------------------------------------

 

  

4

  

 

(FORM OF REVERSE OF NOTE)

 

         This Note is one of a duly authorized series of securities of the Corporation (herein sometimes referred to as the "Security"), issued or to be issued in one or more series under and pursuant to an Indenture dated as of January 15, 1991 (the "Base Indenture"), duly executed and delivered between the Corporation and U.S. Bank Trust National Association, formerly known as First Trust of New York National Association, as successor trustee to Morgan Guaranty Trust Company of New York (the "Trustee"), as amended by the Second Supplemental Indenture, dated as of April 26, 1999 between the Corporation and the Trustee (as so amended, the "Amended Base Indenture"), as supplemented by the Ninth Supplemental Indenture, dated as of March 11, 2005 (the "Ninth Supplemental Indenture") between the Corporation and the Trustee and as further supplemented by the Twelfth Supplemental Indenture, dated as of August 26, 2010 (the "Twelfth Supplemental Indenture"), between the Corporation and the Trustee (the Amended Base Indenture, as so supplemented by the Ninth Supplemental Indenture and the Twelfth Supplemental Indenture, the "Indenture"), to which Indenture reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Corporation and the Holders of the Security. By the terms of the Amended Base Indenture, the Securities are issuable in series that may vary as to amount, date of maturity, rate of interest and in other respects as provided in the Amended Base Indenture. This Security is part of the series designated on the face hereof (the "Notes"), which series is limited in aggregate principal amount as specified in the Twelfth Supplemental Indenture.

 

         This Note may be redeemed in whole at any time or in part from time to time, at the Corporation's option, at a redemption price equal to the greater of (1) 100% of its principal amount or (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Note to be redeemed discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Yield, as defined in the Ninth Supplemental Indenture, plus 20 basis points for the Note, plus, accrued and unpaid interest on the principal amount being redeemed to the Redemption Date.

 

         In case an Event of Default, as defined in the Amended Base Indenture, shall have occurred and be continuing, the principal of all of the Notes may be declared due and payable, in the manner, with the effect and subject to the conditions provided in the Amended Base Indenture.

 

         The Amended Base Indenture contains provisions permitting the Corporation and the Trustee, with the consent of the Holders of not less than a majority in aggregate principal amount of the Outstanding Security of each series affected to execute supplemental indentures for the purpose of adding any provisions to the Amended Base Indenture or of modifying in any manner the rights of the Holders of the Security; provided, however, that no such supplemental indenture shall (i) change the Stated Maturity of the principal of, or any installment of principal of or interest on, any Security, or reduce the principal amount thereof or any premium payable upon the redemption thereof or the rate of interest thereon, or to reduce the amount of principal of an Original Issue Discount Security that would be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 502 of the Amended Base Indenture, or change any Place of Payment where, or the coin or currency in which, any Security (or premium, if any, thereon) or the interest thereon is payable, or impair the right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof (or, in the case of

 

  

5

  

 

 

redemption, on or after the Redemption Date); or (ii) reduce the percentage in principal amount of the Outstanding Security of any series, the Holders of which are required to consent to any such supplemental indenture or to waive certain defaults thereunder and their consequences provided for in the Amended Base Indenture; or (iii) modify any of the provisions of the Amended Base Indenture relating to supplemental indentures that require the consent of the Holders, or the waiver of past defaults or the waiver of certain covenants, except to increase any such percentage or to provide that certain other provisions of the Amended Base Indenture cannot be modified or waived, without the consent of the Holders of each Outstanding Security affected thereby. The Amended Base Indenture also contains provisions permitting the Holders of not less than a majority in principal amount of the Outstanding Security of any series affected thereby, on behalf of all of the Holders of the Security of such series, to waive any past Default under the Amended Base Indenture, and its consequences, except a Default in the payment of the principal of, premium, if any, or interest on any Security of such series or a Default in respect of a covenant or provision of the Amended Base Indenture which cannot be modified or amended without the consent of the Holder of each Outstanding Security of such series affected. Any such consent or waiver by the registered Holder of this Note (unless revoked as provided in the Amended Base Indenture) shall be conclusive and binding upon such Holder and upon all future Holders and owners of this Note and of any Note issued in exchange therefor or in place hereof (whether by registration of transfer or otherwise), irrespective of whether or not any notation of such consent or waiver is made upon this Note.

 

         No reference herein to the Amended Base Indenture, the Ninth Supplemental Indenture or the Twelfth Supplemental Indenture and no provision of this Note or of the Amended Base Indenture, the Ninth Supplemental Indenture or the Twelfth Supplemental Indenture shall alter or impair the obligation of the Corporation, which is absolute and unconditional, to pay the principal of and premium, if any, and interest on this Note at the time and place and at the rate and in the money herein prescribed.

 

         As provided in the Amended Base Indenture and subject to certain limitations therein set forth, this Note is transferable by the registered Holder hereof on the Security Register of the Corporation, upon surrender of this Note for registration of transfer at the office or agency of the Trustee in New York, New York duly endorsed by the registered Holder hereof or accompanied by a written instrument or instruments of transfer in form satisfactory to the Corporation and the Security Registrar duly executed by the registered Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of this series of authorized denominations and for the same aggregate principal amount will be issued to the designated transferee or transferees.

 

         No service charge will be made for any such transfer, but the Corporation may require payment of a sum sufficient to cover any tax or other governmental charge payable in relation thereto.

 

         Prior to due presentment of this Note for registration of transfer of this Note, the Corporation, the Trustee, and any agent of the Corporation or the Trustee may treat the registered Holder hereof as the owner hereof (whether or not this Note shall be overdue) and neither the Corporation, the Trustee nor any such agent shall be affected by notice to the contrary.

 

  

6

  

 

 

         No recourse shall be had for the payment of the principal of or the interest on this Note, or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Amended Base Indenture, against any incorporator, stockholder, officer or director, past, present or future, as such, of the Corporation or of any predecessor or successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issuance hereof, expressly waived and released.

 

         The Notes are issuable only in registered form without coupons in denominations of $1,000 and any integral multiple thereof. This Global Note is exchangeable for Notes in definitive form only under certain limited circumstances set forth in the Amended Base Indenture. Notes so issued are issuable only in registered form without coupons in denominations of $1,000 and any integral multiple thereof. As provided in the Amended Base Indenture and subject to certain limitations herein and therein set forth, Notes of this series so issued are exchangeable for a like aggregate principal amount of Notes of a different authorized denomination, as requested by the Holder surrendering the same.

 

         All terms used in this Note that are defined in the Amended Base Indenture, the Ninth Supplemental Indenture or the Twelfth Supplemental Indenture shall have the meanings assigned to them therein.

 

         THE AMENDED BASE INDENTURE, THE NINTH SUPPLEMENTAL INDENTURE, THE TWELFTH SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

 

 

 

 

 

 7hwsy_ex1017.htm

 

EXHIBIT 10.17

 

CONSULTING AGREEMENT

 

This Consulting Agreement ("the agreement "), effective as of Friday, May 21, 2010 which is entered into and by and between Hawk Systems, Inc , a Delaware Corporation (herein referred to as "the Company") and A.S. Austin company a (herein referred to as "the consultant")

 

RECITALS

 

WHEREAS, company is a publicly- held corporation with its stock trading on the OTC BB Markets under the symbol HWSYD: and

 

WHEREAS, the Company desires to engage the services of consultant to represent the company in the area of investor's communications and public relations with existing shareholders, brokers, dealers, and other investment professionals as to the company's current and proposed activities, and to consult with management concerning such Company activities.

 

NOW THEREFORE, In Consideration of the promises and the mutual covenant and agreements hereinafter set forth, the parties hereto covenant and agree as follows:

 

	
  

	
1.

	
Term of Agreement, Company hereby agrees to retain the consultant to act in a consulting capacity to the company and the consultant hereby agrees to provide services to the company commencing on 05-21-2010 for a term of one year.

 

	
  

	
2.

	
Duties of Consultant, The consultant agrees that it will generally provide the following services through its officers and employees during the term specified in section 1:

 

	
  

	
a.

	
consult and assist the Company in developing and implementing appropriate plans and means for presenting the company and its business plans, strategy and personal to the financial community, and creating the foundation for subsequent financial public relations efforts:

	
  

	
b.

	
Introduce the Company to the financial community.

	
  

	
c.

	
With the cooperation of the Company, maintain an awareness during the term of this Agreement of the Company's plans, strategy and personnel, as they may evolve during such a period, and consult and assist the Company in communicating appropriate information regarding such plans, strategy and personnel to the financial community;

	
  

	
d.

	
Assist and consult the Company with respect to its (i) relations with stockholders (ii) relations with brokers, dealers, analysts and other investment professional, and (iii) financial public generally;

	
  

	
e.

	
Perform the functions generally assigned to stockholder relations and public relations depat

	
tments in major corporations, including responding to telephone

	
  

	
and written inquiries (which may be referred to the Consultant by the Company); assisting in the preparation of press releases for the Company with the Company's involvement and approval of all press releases, reports and communications with or to shareholders, the investment community and the general public; consulting with respect to the timing, form, distribution and other matters related to such releases, reports and communications; and at the Company's request and subject to the Company's securing its own rights to the use of its names, marks, and logos, consulting with respect to corporate symbols, logos, names, the presentation of such symbols, logos and other matters relating to corporate image.

 

  

  

  

 

	
  

	
f.

	
Upon the Company's direction and approval, disseminate information regarding the company to shareholders, brokers, dealers, and other investment community professional and the general investing public.

	
  

	
g.

	
Upon the Company's approval conduct meetings, in person or by the telephone, with , brokers, dealers, analyst and other investment professionals to communicate with them regarding the company's plans, goals and activities the company in preparing for press conferences and other forums involving the media, investment professionals and the general investment public.

	
  

	
h.

	
At the Company's request , review business plans, strategies, mission statements budgets, proposed transactions and other plans for the purpose of advising the company of the public relations implications thereof; and

	
  

	
i.

	
Otherwise perform as the company's consultant for public relations with the financial professionals.

 

	
  

	
3.

	
Allocation of Time and Energies. The consultant herby promises to perform and discharge faithfully the responsibilities which may be assigned to the consultant from time to time by the officers and dully authorized representatives of the company in connection with the conduct of its financial and public relations and communication activities, so long as such activities are in compliance with the applicable securities laws and regulations. Consultant and staff shall diligently and thoroughly provide the consulting services required hereunder. Although no specific hours-per day requirement will be required, consultant and the company agree that consultant will perform the duties set forth herein above in a diligent and professional manner. The parties acknowledge and agree that a disproportionately large amount of the effort to be expended and the cost to be incurred by the consultant and the benefits to be received by the company are expected to occur within or shortly after the first two months of the effectiveness of this Agreement. It is explicitly understood that consultant's performance of it duties hereunder will in no way be measured by the price of the company's common stock nor the trading volume of the company's common stock. It is also understood that the company is entering into this agreement with A.S. Austin Company or Andrew S. Austin (ASA) a Nevada Corporation and not any individual member of ASA and as such , Consultant will not be deemed to have breached this Agreement if any member, officer or director of ASA leaves the firm or dies or becomes physically unable to perform any meaningful activities during the term of this agreement, provided the Consultant otherwise performs its obligation under this Agreement.

 

	
  

	
4.

	
Remuneration. As full and complete compensation for services in this agreement, the company shall compensate ASA as follows:

 

4.1 For undertaking this engagement and for other good and valuable consideration, the company agrees to Issue to the Consultant a total 7500,000 shares common stock of Hawk Systems, Inc, as a "Commencement Bonus", with the 750,000 shares of the company's common stock to be delivered to consultant within five (5) days business days of 5/21/2010 This commencement bonus shall be issued to the Consultant immediately following the execution of this agreement and shall, when issued and delivered to Consultant, be fully paid and non-assessable. The Company understands and agrees that Consultant has foregone significant opportunities to accept this engagement and that the Company derives substantial benefits from the execution of this agreement and the ability to announce its relationship with consultant. The 750,000 shares of common stock issued as a Commencement Bonus, therefore, constitute payments for consultant's agreement to consult to the Company and are nonrefundable, non-apportionable, and non-ratable retainer, such shares of common stock are not a prepayment for future services. If the company decides to terminate this Agreement prior to 05-20-2011 for any reason whatsoever, it is agreed and understood that Consultant will not be requested or demanded by the company to return any of the shares of common stock paid to it as Commencement Bonus hereunder. Further if and in the event the Company is acquired in whole or in part, during the term of this agreement, it is agreed and understood Consultant will not be requested or demanded by the Company to return any of the 750,000 shares of common stock paid to it hereunder. It is further agreed that if at any time during the term of this agreement, the Company or substantially all of the assets are merged with or acquired by another entity, or some other change occurs in the legal entity that constitutes the Company, the Consultant shall retain and will not be requested by the Company to return any of the Commencement Bonus 750,000 shares.

  

  

  

 

 

4.2 The Commencement Bonus shares issued pursuant to this agreement shall be issued in the names of A. S. Austin Company TAX ID# 20-4970311.

 

4.3 With each transfer of shares of the common stock to be issued pursuant to this agreement ( Collectively, the "shares"), Company shall cause to be issued a certificate representing the common stock and a written Opinion of counsel for the Company stating that said shares are validly issued fully paid and non assessable and that the issuance and eventual transfer of them to consultant has

been dully authorized by the Company. Company verifies that all shares issued to consultant pursuant to this agreement shall have been validly issued, fully paid and non-assessable and that the issuance and any transfer of them to Consultant shall have been duly authorized by the company's board of directors.

 

4.4 Consultant acknowledges that the shares of common stock to be issued pursuant to this Agreement ( Collectively the "shares") have not been registered under the securities Act of 1933, and accordingly are "restricted securities" within the meaning of Rule 144 of the act. As such, the shares may not be resold or transferred unless the Company has received an opinion of counsel reasonably satisfactory to the Company that such resale or transfer is exempt from the registration requirements of the Act.

 

4.5 Grant of Warrants. The company shall grant and deliver to A. S. Austin Company warrants (the Warrants) to purchase up to 500,000 shares of the common stock (the Common Stock). Such warrants to be granted ratably over the term of this Agreement on the first day of each Calendar Month. The warrants shall be exercisable at any time or from time to time commencing on The grant date at an exercise price of $ .55 per share, subject to customary stock splits and the like and payable in cash (including check, bank draft or money order).

  

  

  

 

4.6 In connection with the acquisition of the shares, hereunder, the Consultant represents and warrants to the Company, to the best of its/his knowledge, as follows.

 

	
  

	
a.

	
Consultant acknowledges that the Consultant has been afforded the opportunity to ask questions of and receive answers from duly authorized officers and other representatives of the Company concerning an investment in the shares and any additional information which the consultant has requested.

 

	
  

	
b.

	
Consultant's investment in restricted securities is reasonable in relation to the consultant's net worth, which is in excess of ten (10) times the consultant's cost basis in shares. Consultant has had experience in investments in restricted and publicly traded securities, and Consultant has had experience in investments in speculative securities and other investments which involve the risk of loss of investments. Consultant acknowledges that an investment in the shares is speculative and involves the risk of loss. Consultant has the request knowledge to assess the relative merits and risk of this investment without the necessity of relying upon other advisors, and consultant can afford the risk of loss of his entire investment in the shares. Consultant is (i) an accredited investor as that term is defined in Regulation D promulgated under the Securities Act of 1933, and (ii) a purchaser described in section 25102(f) (2) of the California Corporate Securities Law of 1968, as amended.

	
  

	
c.

	
Consultant is acquiring the shares for the Consultants own account for long —term investment and not with a view toward resale or distribution thereof except in accordance with applicable laws.

 

4.7 Additionally, for a period of two years after the effective date hereof, should the Company make any public offering of its securities pursuant to an effective registration statement under the securities act of 1933 or 1934 as amended, Consultant shall be entitled, and the Company agrees to include in such registration any or all of the common stock given to consultant by the company as consideration hereunder (commonly referred to as "Piggyback Registration Rights"). Such piggyback registration rights include, at the consultants option registration on Form S-1. All such registration rights shall be subject to customary market stand — off and underwriter cutback provisions.

 

	
  

	
5.

	
Non-Assignable of services; Consultant's services under this contract are offered to Company only and may not be assigned by Company to any entity with which Company merges or which acquires the Company or substantially all or its assets. In the event of such merger or acquisition, all compensation to Consultant herein under the schedules set forth herein remain due and payable, and any compensation received by the Consultant may be retained in the entirely by Consultant, all without any reduction or pro-rating and shall be considered and remain fully paid and non-assessable.

 

Not withstanding the non-assignability of Consultant's services, Company shall assure that in the event of any merger, acquisition or similar change in form of entity, that its successor entity shall agree to complete all obligation to Consultant, including the provision and transfer of all compensation herein, and the perseveration of the value

thereof consistent with the rights granted to Consultant by the Company herein, and to shareholders.

 

  

  

  

 

 

  

 

	
  

	
6. 

	
Expenses: Consultant agrees to pay for all its expenses (phone, mailing, labor, etc.) other than extraordinary items (travel required by or specifically requested by the Company, luncheons or dinners to large groups of investments professionals, mass faxing to a sizable percentage of the Company's shareholders, investor conference calls, print advertisements in publications, etc.) approved by the Company prior to its incurring an obligation for reimbursement.

 

	
  

	
7. 

	
Indemnification The Company warrants and represents that all oral communications written documents or material furnished to Consultant by the Company with respect to financial affairs operations profitability and strategic planning of the Company are accurate and Consultant may rely upon the accuracy thereof without independent investigation. The Company will protect, indemnify and hold harmless Consultant against any claims or litigation including any damages, liability, cost, and reasonable attorneys fees as incurred with respect thereto resulting from Consultant's communication or dissemination of any said information, documents or materials excluding any such claims or litigation resulting from Consultant's communication or dissemination of information not provided or authorized by the Company.

 

	
  

	
8.

	
Representations Consultant represents that it is not required to maintain any licenses and registrations under federal or any state regulations necessary to perform the services set forth herein. Consultant acknowledges that to the best of its knowledge the performance of services set forth under this agreement will not violate any rule or provision of any regulatory agency having jurisdiction over consultant. Consultant acknowledges that to the best of its knowledge, consultant and its officers and directors are not subject to any investigation, claim, decree or judgment involving and violation of the SEC or securities laws. Consultant further acknowledges that it is not a security Broker Dealer or a registered investment advisor. Company acknowledges that to the best of its knowledge that it has not violated any rule or provision of any regulatory agency having jurisdiction over the company. Company acknowledges that to the best of its knowledge company is not the subject of any investigation, claim, degree or judgment involving any violation of the SEC or securities laws.

 

	
  

	
9.

	
Legal Representations The Company acknowledges that it has been represented by independent legal counsel in the preparation of the agreement. Consultant represents that it has consulted with independent legal counsel and /or tax, financial and business advisors to the extent the Consultant deemed necessary.

 

	
  

	
10. 

	
Status as Independent Contractor Consultant's engagement pursuant to this agreement shall be as independent contractor, and not as an employee, officer or other agent of the Company. Neither party to this agreement shall represent or hold itself out to be the employer of the other. Consultant further acknowledges the consideration provided hereinabove is a gross amount of consideration and that the company will not withhold from such consideration any amounts as to income taxes, social security payments or any other payroll taxes. All such income taxes and other such payment shall be made or provided for by Consultant and the Company shall have no responsibility or duties regarding such matters. Neither the Company nor the Consultant possesses the authority to bind each other in any agreements without the express written consent of the entity to be bound.

 

 

   

 

 

  

  

  

 

 

	
  

	
11.

	
Attorney's Fee If any legal action or any arbitration or other proceeding is brought for the enforcement of interpretation of this Agreement or because of an alleged dispute, breach, default or misrepresentation in connection with or related to this agreement the successful or prevailing party shall be entitled to recover reasonable attorneys fees and other cost in connection with that action or proceeding in addition to any other relief to which it or they may be entitled.

 

	
  

	
12. 

	
Waiver: The waiver by either of a breach or any provision of this Agreement by the other party shall not operate or be construed as a waiver of any subsequent breach by such other party.

 

	
  

	
13. 

	
Notices: All notices, requests and other communications hereunder shall be deemed to be duly given if sent by U.S. postage prepaid, addressed to the other party at the address set forth herein below.

 

    Company: Hawk Systems, Inc

 

    Contact Person: Michael Diamant

    Address: 2385 NW Executive Center Drive Suite 100 City: Boca Raton

    State: Florida

    Zip: 33431

   

    Consultant:

 

    A.S. Austin Company/ Andrew S. Austin 1265 Avocado Blvd # 104-402

    El Cajon, CA 92020

 

It is understood that either party may change the address to which notices for it shall be addressed by providing notice of such a change to the other party in the manner set forth in this paragraph.

 

 

	
  

	
14.

	
Choice of Jurisdiction and Venue: This agreement shall be governed by, construed and enforced in accordance with the laws of California. The parties agree that San Diego County, CA will be the venue of any dispute and will have jurisdiction over all parties.

 

	
  

	
15.

	
Arbitration: Any controversy or claim arising out of or relating to this agreement, or the alleged breach thereof or relating to consultants activities or remuneration under this agreement shall be binding arbitration in California. In accordance with the applicable rules of the American Arbitration Association, and judgment on the award rendered by the arbitTator(s) shall be binding on the parties and may be entered in any court having jurisdiction as provided by paragraph 14 herein. The provisions of Title 9 of part 3 of the California Code of Civil procedure, including section 1283.05 and successor statutes, permitting expanded discovery proceedings shall be applicable to all disputes that are arbitrated under this paragraph.

 

	
  

	
16.

	
Complete Agreement: This Agreement contains the entire agreement of the parties relating to the subject matter hereof. This Agreement and its terms may not be changed orally but only by an agreement in writing signed by the party against whom enforcement of any waiver, change, modification, extension or discharge is sought.

 

       

  

  

  

 

	 AGREED TO:	 	 
	 	 	 
	“COMPANY”   	Hawk Systems, Inc.	 
	 	 	 	 
	
Date: 5/21/2010

	
By: 

	/s/ Michael Diamant	 
	 	 	 	 
	 	 	 	 
	“CONSULTANT” 	A.S. AUSTIN COMPANY	 
	 	 	 	 
	Date: 5/21/2010  	By:	 	 
	 	 	Andrew S. Austin, President

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