Document:

ex10-4.htm

Exhibit 10.4

 

SECURITIES ESCROW AGREEMENT

 

This Securities Escrow Agreement (this “Agreement”) is made on September 10, 2010, by and among China Golf Group, Inc., a Delaware corporation (the “Company”), and the investors named on the signature page of this Agreement (together, the “Investors” and each an “Investor”) and Guzov Ofsink, LLC (the “Escrow Agent”).   The aforementioned are also referred to individually herein as a “Party” and collectively herein as the “Parties.”

 

PRELIMINARY STATEMENTS

 

A.           The Company and the Investors have entered into the Securities Purchase Agreement dated the date hereof (the “Securities Purchase Agreement”), a copy of which has been delivered to the Escrow Agent, pursuant to which the Company will issue and sell to the Investors, and the Investors will subscribe for and acquire from the Company, certain Company securities for an aggregate purchase price of up to Seven Million Dollars ($7,000,000) on the terms and subject to the conditions set forth therein.  Capitalized terms used in this Agreement and not otherwise defined shall have the meanings set forth in the Securities Purchase Agreement.

 

B.           Section 6.15 of the Securities Purchase Agreement (the “Make Good Escrow Provisions”)  provide certain rights to the Investors, to acquire additional shares of the Company’s Common Stock  which shares will be deposited in escrow at the initial Closing by the Company as security for the Company’s obligations under Section 6.15 of the Securities Purchase Agreement.

 

C.           The Make Good Escrow Provisions provide that, at the initial Closing, the Company shall deposit in escrow 2,000,000 shares of Common Stock (the “Make Good Escrow Shares”) to be delivered to the Investors as set forth in Section 6.15 of the Securities Purchase Agreement in the event certain earnings targets for 2010 and 2011 are not met.

 

D.           The escrow fund created by the deposit of the Make Good Escrow Shares is referred to as the “Escrow Fund.”

 

E.           Pursuant to the terms of the Securities Purchase Agreement, the Company has agreed, as a condition to its obligations thereunder, to enter into this Agreement and establish the terms and conditions pursuant to which the Make Good Escrow Shares will be deposited, held in, and disbursed from the Escrow Fund.

 

F.           The Company desires to appoint the Escrow Agent to act pursuant to the terms and conditions set forth herein and the Escrow Agent desires to accept such appointment.

 

AGREEMENT

 

The Parties, intending to be legally bound, agree as follows:

 

1.           Establishment of the Escrow Fund.

 

(a)       Escrow Fund.  The Escrow Agent agrees to (i) accept delivery of the Make Good Escrow Shares, (ii) hold such Make Good Escrow Shares subject to the terms and conditions of this Agreement and the Make Good Escrow Provisions.

 

  

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(b)       Escrow Arrangements; Purpose.  The Escrow Fund is to be held and distributed by the Escrow Agent in accordance with and subject to the provisions of this Agreement and the Make Good Escrow Provisions.  The Escrow Fund will be disbursed in the manner set forth  in the Make Good Escrow Provisions in the event the earnings targets for 2010 and 2011 are not met.

 

2.           Administration of Escrow Fund and Tax Escrow Fund.

 

(a)           Delivery of Make Good Escrow Shares.  At Closing, the Make Good Escrow Shares will be delivered by the Company to the Escrow Agent in accordance with the Make Good Escrow Provisions.

 

(b)            Claims on the Escrow Fund.  Upon receipt by the Escrow Agent of a certificate from the Company, stating that (1) the 2010 Target Number or 2011 Target Number, as the case may be, has not been met, and (2) the number of Make Good Escrow Shares to be delivered to the Investors pursuant to the Make Good Escrow Provisions, the Escrow Agent shall deliver to the Investors out of the Escrow Fund, as promptly as practicable, the  number of Make Good Escrow Shares as specified by the Company.   The Escrow Agent shall not be required to determine or calculate the number of shares to be issued and shall not be obligated to issue Make Good Escrowed Shares, but rather will only deliver the Make Good Escrow Shares as instructed in the certificate from the Company to the Escrow Agent.  In the event that the Escrow Agent receives a certificate from the Company, the Escrow Agent shall deliver to the Company such number of Make Good Escrow Shares as specified by the Company in the certificate.

 

(c)           No Encumbrance.  The Escrow Fund shall be held as a trust fund and shall not be subject to any encumbrance, trustee process or any other judicial process of any creditor of any party hereto.  Except as provided in this Agreement, no Make Good Escrow Shares or any beneficial interest therein may be pledged, sold, encumbered, assigned or transferred, including by operation of law, by the Company or be taken or reached by any legal or equitable process in satisfaction of any debt or other liability of the Company, prior to the delivery to the Company of the Make Good Escrow Shares by the Escrow Agent, except as otherwise contemplated by this Agreement or the Securities Purchase Agreement.

 

3.           The Escrow Agent; Limitation of the Escrow Agent’s Liability; Fees and Expenses.

 

(a)           The Escrow Agent is hereby appointed depositary and escrow agent for the Company with respect to the Escrow Funds.  The Company agrees to pay Escrow Agent a flat fee of $1,000 for the services hereunder.

 

(b)           The Escrow Agent is not a party to, nor is it bound by nor need it give any consideration to the terms or provisions of, any agreement among the Company and the Investors.  The only duties and responsibilities of the Escrow Agent hereunder shall be to hold the Escrow Funds as escrow agent according to the terms and provisions of this Agreement and to dispose of and deliver the Escrow Fund as provided in this Agreement.

 

(c)           The Escrow Agent shall be indemnified and held harmless by the Company, from and against any and all liability, including all expenses reasonably incurred in its defense, to which the Escrow Agent shall be subject by reason of any action taken or omitted or any investment or disbursement of any part of the Escrow Fund made by the Escrow Agent pursuant to this Agreement, except as a result of the Escrow Agent’s willful misconduct or material breach of this Agreement, provided, however, that under all circumstances, Escrow Agent shall be given notice of any alleged breach of this Agreement and the reasonable opportunity to cure such alleged breach, which under all circumstances shall not be less than ten (10) business days following receipt of notice. The reasonable costs and expenses of enforcing this right of indemnification shall also be paid by the Company.  This right of indemnification shall survive the termination of this Agreement, and the removal or resignation of the Escrow Agent.

 

  

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(d)           The Escrow Agent undertakes to perform only such duties as are specifically set forth in this Agreement, and the Escrow Agent shall not be liable except for the non performance of such duties as are specifically set forth in this Agreement, provided, however, that under all circumstances, Escrow Agent shall be given notice of any alleged breach of this Agreement and the reasonable opportunity to cure such alleged breach, which under all circumstances shall not be less than ten (10) business days following receipt of notice, and no implied covenants or obligations shall be read into this Agreement against the Escrow Agent.  The Escrow Agent may consult with counsel (of its choice)  regarding any of its duties or obligations hereunder, and shall be fully protected in any action taken in good faith in accordance with such advice.  The Escrow Agent shall be fully protected in acting in accordance with any written instructions given to it hereunder and believed by it to have been executed by the proper party or parties.  The Escrow Agent’s duties shall be determined only with reference to this Agreement and the Securities Purchase Agreement and applicable Laws.  The Escrow Agent is not charged with any duties or responsibilities in connection with any other documents or agreements.

 

(e)           Fees are payable in advance as compensation for the ordinary administrative services to be rendered hereunder and the Company agrees to pay all the fees and expenses of the Escrow Agent, including the indemnity provided in Section 3(c) hereof.

 

(f)           It is understood and agreed that in the event any disagreement among the parties hereto results in adverse claims or demands being made in connection with the Escrow Fund, or in the event the Escrow Agent in good faith is in doubt as to what action it should take hereunder, the Escrow Agent shall retain the Escrow Fund until the Escrow Agent shall have received (i) an enforceable final order of a court of competent jurisdiction which is not subject to further appeal directing delivery of the Escrow Fund  or (ii) a written agreement executed by the Company directing delivery of the Escrow Fund, in which event Escrow Agent shall disburse the Escrow Fund in accordance with such order or agreement.  Any court order referred to in (i) above shall be accompanied by a legal opinion of counsel for the presenting party satisfactory to the Escrow Agent to the effect that said court order is final and enforceable and is not subject to further appeal.  The Escrow Agent shall act on such court order and legal opinion without further question.  Notwithstanding the foregoing, if Escrow Agent is in doubt or remains unsure of what action it should take hereunder, Escrow Agent shall have the right to file an interpleader action and interplead into a court of competent jurisdiction the Escrow Fund and all documents and instruments evidencing, pertaining or relating to the Escrow Fund  and any other item, instrument or document held in or subject to the Escrow Fund and thereby Escrow Agent shall be released of its duties, responsibilities and obligations arising hereunder.

 

(g)           The Escrow Agent may resign at any time by giving written notice thereof to the other parties hereto.  Such resignation shall become effective 10 business days following the receipt of such notice and Escrow Agent shall deliver, within 10 business days after the effectiveness of its resignation, the Escrow Shares and all items, documents and instruments held pursuant to the Escrow Fund to its successor Escrow Agent.  If an instrument of acceptance by a successor Escrow Agent shall not have been delivered to the Escrow Agent within 10 business days after the giving of such notice of resignation, the resigning Escrow Agent may, at the expense of Company, petition any court of competent jurisdiction for the appointment of a successor Escrow Agent.  If any property subject hereto is at any time attached, garnished or levied upon, under any court order, or in case the payment, assignment, transfer, conveyance or delivery of any such property shall be stayed or enjoined by any court order, or in case any order, judgment or decree shall be made or entered by any court affecting such property, or any part thereof, then in any of such events, the Escrow Agent is authorized, in its sole discretion, to rely upon and comply with any such order, writ, judgment or decree, which it is advised by legal counsel (of its own choosing) is binding upon it, and if it complies with any such order, writ judgment or decree, it shall not be liable to any of the parties hereto or to any other person, firm or corporation by reason of such compliance, even though such order, writ, judgment or decree may be subsequently reversed, modified, annulled, set aside or vacated.

 

  

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4.      Notices.  Any certificate or other notice to any party hereto given pursuant to this Agreement shall be given by fax, first-class mail or nationally recognized express overnight courier delivery service addressed as follows.  Notices shall not be deemed to be given until actually received.

If to the Escrow Agent:

Guzov Ofsink, LLC

600 Madison Avenue

New York. NY 10022

Attention: Darren Ofsink, Esq

Telephone: 212 371 8008

Fax: (212) 688-7273

Email: dofsink@golawintl.com

 

If to the Company:

 

China Golf Group, Inc

China Merchants Tower, Suite 1503

161 Lujiazui East Road, Shanghai, PRC 20001

Attn: Bi Ye

Tel: 86-21 5876 5017

Fax: 86-21-5876-5085

Email: tigerye666@hotmail.com

with a copy (which shall not constitute notice) to:

Guzov Ofsink, LLC

600 Madison Avenue, 14th Floor

New York, New York  10022

Attention:  Darren L. Ofsink

Telephone No.: (212) 371-8008

Facsimile No.:  (212) 688-7273

E-mail: dofsink@golawintl.com

 

5.           Incorporation by Reference of Portions of the Securities Purchase Agreement.  The parties agree that the terms of the Make Good Escrow Provisions shall be deemed to be incorporated by reference in this Agreement as if such sections had been set forth in its entirety herein.  Notwithstanding the immediately preceding sentence, the Parties agree that the Escrow Agent’s fees and expenses shall be governed under this Agreement.  The Parties acknowledge that the administration of the Escrow Fund by the Escrow Agent will require reference to both the terms of this Agreement as well as the terms of such Make Good Escrow Provisions. In the event of any conflict between this Agreement and the Make Good Escrow Provisions, the provisions of the Make Good Escrow Provisions shall govern.

 

  

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6.           General.

 

(a)           Controlling Law; Venue.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to choice of law provisions, statutes, regulations or principles of this or any other jurisdiction.  Each Party hereby irrevocably submits to the exclusive jurisdiction (including personal jurisdiction) of the state and federal courts of the State of New York for any action, suit or proceeding arising in connection with this Agreement, and agrees that any such action suit or proceeding shall be brought only in such court (and waives any objection based on forum non conveniens or any other jurisdiction to venue therein).  Process in any proceeding under this Agreement may be served on any Party anywhere in the world.  Notwithstanding the foregoing, nothing in this Agreement shall preclude the Investors the right to commence proceedings relating to this Agreement in any foreign jurisdiction, including the People’s Republic of China.

 

(b)           Succession and Assignment.  This Agreement shall be binding upon and inure to the benefit of the Parties named herein and their respective successors and permitted assigns.  No Party may assign either this Agreement or any of his or its rights, interests, or obligations hereunder without the prior written approval of the other Parties adversely affected by such assignment; provided, however, that any Investor may assign any or all of its rights and interests hereunder to one or more of its Affiliates.

 

(c)           Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument.

 

(d)           Entire Agreement.  This Agreement constitutes the entire agreement among the Parties and supersedes any prior understandings, agreements, or representations by or among the Parties, written or oral, to the extent they related in any way to the subject matter hereof.

 

(e)           Waivers.  No amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by all Parties.

 

(f)            Amendment.  This Agreement may be amended with the written consent of all Parties; provided, however, that if the Escrow Agent does not agree to an amendment agreed upon by the Company, it may resign.

 

(Remainder of page intentionally left blank)

  

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The Parties have executed and delivered this Agreement as of the date indicated in the first sentence of this Agreement.

 

ESCROW AGENT:

GUZOV OFSINK, LLC

 

By: ______________________________

 

Name:

Title:

 

THE COMPANY:

CHINA GOLF GROUP, INC.

 

By:_________________________, Chief Executive Officer

 

INVESTORS:

ALPINE VENTURE ASSOCIATES, LLC

 

By: ________________________________

 

[NAME OF INVESTOR]

 

By: ________________________________,x4-2.htm

 

Exhibit 4.2

GULF POWER COMPANY

TO

THE BANK OF NEW YORK MELLON,

TRUSTEE

SEVENTEENTH SUPPLEMENTAL INDENTURE

DATED AS OF SEPTEMBER 17, 2010

SERIES 2010B 5.10% SENIOR NOTES

DUE OCTOBER 1, 2040

  

  

  

TABLE OF CONTENTS1

 

 

PAGE

	 	

ARTICLE 1

	 1
	 	 	Series 2010B Senior Notes	 	 1
	 	 	SECTION 101.  Establishment	 	 1
	 	 	

SECTION 102.  Definitions

	 	 2
	 	 	

SECTION 103.  Payment of Principal and Interest

	 	 3
	 	 	

SECTION 104.  Denominations

	 	 4
	 	 	SECTION 105.  Global Securities	 	 4
	 	 	SECTION 106.  Transfer	 	 4
	 	 	

SECTION 107.  Redemption at the Company’s Option

	 	 5
	 	  

ARTICLE 2

	 	 5
	 	 	Miscellaneous Provisions	 	 5
	 	 	SECTION 201.  Recitals by Company	 	 5
	 	 	

SECTION 202.  Ratification and Incorporation of Original Indenture

	 	 5
	 	 	

SECTION 203.  Executed in Counterparts

	 	 6

 

EXHIBIT A                      Form of Series 2010B Note

EXHIBIT B                      Certificate of Authentication

 

 

 

  

    1This Table of Contents does not constitute part of the Indenture or have any bearing upon the interpretation of any of its terms and provisions.

 

	
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THIS SEVENTEENTH SUPPLEMENTAL INDENTURE is made as of the 17th day of September, 2010 by and between GULF POWER COMPANY, a Florida corporation, One Energy Place, Pensacola, Florida 32520-0786 (the “Company”), and THE BANK OF NEW YORK MELLON, a New York banking corporation, 101 Barclay Street, Floor 8W, New York, New York  10286 (the “Trustee”).

W I T N E S S E T H:

WHEREAS, the Company has heretofore entered into a Senior Note Indenture, dated as of January 1, 1998 (the “Original Indenture”), with The Bank of New York Mellon (as successor to JPMorgan Chase Bank, N.A. (formerly known as The Chase Manhattan Bank)), as Trustee, as heretofore supplemented;

WHEREAS, the Original Indenture is incorporated herein by this reference and the Original Indenture, as heretofore supplemented and as further supplemented by this Seventeenth Supplemental Indenture, is herein called the “Indenture”;

WHEREAS, under the Original Indenture, a new series of Senior Notes may at any time be established by the Board of Directors of the Company in accordance with the provisions of the Original Indenture and the terms of such series may be described by a supplemental indenture executed by the Company and the Trustee;

WHEREAS, the Company proposes to create under the Indenture a new series of Senior Notes;

WHEREAS, additional Senior Notes of other series hereafter established, except as may be limited in the Original Indenture as at the time supplemented and modified, may be issued from time to time pursuant to the Indenture as at the time supplemented and modified; and

WHEREAS, all conditions necessary to authorize the execution and delivery of this Seventeenth Supplemental Indenture and to make it a valid and binding obligation of the Company have been done or performed.

NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

ARTICLE 1

Series 2010B Senior Notes

SECTION 101.  Establishment.  There is hereby established a new series of Senior Notes to be issued under the Indenture, to be designated as the Company’s Series 2010B 5.10% Senior Notes due October 1, 2040 (the “Series 2010B Notes”).

 

 

  

  

  

There are to be authenticated and delivered $125,000,000 principal amount of Series 2010B Notes, and such principal amount of the Series 2010B Notes may be increased from time to time pursuant to Section 301 of the Original Indenture.  All Series 2010B Notes need not be issued at the same time and such series may be reopened at any time, without the consent of any Holder, for issuances of additional Series 2010B Notes.  Any such additional Series 2010B Notes will have the same interest rate, maturity and other terms as those initially issued.  No Series 2010B Notes shall be authenticated and delivered in excess of the principal amount as so increased except as provided by Sections 203, 303, 304, 907 or 1107 of the Original Indenture.  The Series 2010B Notes shall be issued in fully registered form.

The Series 2010B Notes shall be issued in the form of one or more Global Securities in substantially the form set out in Exhibit A hereto.  The Depositary with respect to the Series 2010B Notes shall be The Depository Trust Company.

The form of the Trustee’s Certificate of Authentication for the Series 2010B Notes shall be in substantially the form set forth in Exhibit B hereto.

Each Series 2010B Note shall be dated the date of authentication thereof and shall bear interest from the date of original issuance thereof or from the most recent Interest Payment Date to which interest has been paid or duly provided for.

The Series 2010B Notes will not have a sinking fund.

SECTION 102.  Definitions.  The following defined terms used herein shall, unless the context otherwise requires, have the meanings specified below.  Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Original Indenture.

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Series 2010B Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Series 2010B Notes.

“Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Company obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations.

“Independent Investment Banker” means an independent investment banking institution of national standing appointed by the Company.

“Interest Payment Dates” means April 1 and October 1 of each year, commencing April 1, 2011.

“Original Issue Date” means September 17, 2010.

 

 

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“Redemption Price” has the meaning given to it in Section 107 hereof.

“Reference Treasury Dealer” means a primary United States Government securities dealer appointed by the Company.

“Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount and quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m. on the third Business Day in New York City preceding such Redemption Date).

“Regular Record Date” means, with respect to each Interest Payment Date, the 15th calendar day preceding such Interest Payment Date (whether or not a Business Day).

“Stated Maturity” means October 1, 2040.

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

SECTION 103.  Payment of Principal and Interest.  The principal of the Series 2010B Notes shall be due at Stated Maturity (unless earlier redeemed).  The unpaid principal amount of the Series 2010B Notes shall bear interest at the rate of 5.10% per annum until paid or duly provided for.  Interest shall be paid semiannually in arrears on each Interest Payment Date to the Person in whose name the Series 2010B Notes are registered at the close of business on the Regular Record Date for such Interest Payment Date, provided that interest payable at the Stated Maturity or on a Redemption Date as provided herein will be paid to the Person to whom principal is payable.  Any such interest that is not so punctually paid or duly provided for will forthwith cease to be payable to the Holders on such Regular Record Date and may either be paid to the Person or Persons in whose name the Series 2010B Notes are registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Holders of the Series 2010B Notes not less than ten (10) days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange, if any, on which the Series 2010B Notes shall be listed, and upon such notice as may be required by any such exchange, all as more fully provided in the Original Indenture.

Payments of interest on the Series 2010B Notes will include interest accrued to but excluding the respective Interest Payment Dates.  Interest payments for the Series 2010B Notes shall be computed and paid on the basis of a 360-day year of twelve 30-day months.  In the event that any date on which interest is payable on the Series 2010B Notes is not a Business Day, then a payment of the interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of any such delay), with the same force and effect as if made on the date the payment was originally payable.

 

 

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Payment of the principal and interest due at the Stated Maturity or earlier redemption of the Series 2010B Notes shall be made upon surrender of the Series 2010B Notes at the Corporate Trust Office of the Trustee.  The principal of and interest on the Series 2010B Notes shall be paid in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.  Payments of interest (including interest on any Interest Payment Date) will be made, subject to such surrender where applicable, at the option of the Company, (i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or (ii) by wire transfer or other electronic transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least sixteen (16) days prior to the date for payment by the Person entitled thereto.

SECTION 104.  Denominations.  The Series 2010B Notes may be issued in denominations of $1,000, or any integral multiple thereof.

SECTION 105.  Global Securities.  The Series 2010B Notes will be issued in the form of one or more Global Securities registered in the name of the Depositary (which shall be The Depository Trust Company) or its nominee.  Except under the limited circumstances described below, Series 2010B Notes represented by one or more Global Securities will not be exchangeable for, and will not otherwise be issuable as, Series 2010B Notes in definitive form.  The Global Securities described above may not be transferred except 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 or to a successor Depositary or its nominee.

Owners of beneficial interests in such a Global Security will not be considered the Holders thereof for any purpose under the Indenture, and no Global Security representing a Series 2010B Note shall be exchangeable, except for another Global Security of like denomination and tenor to be registered in the name of the Depositary or its nominee or to a successor Depositary or its nominee.  The rights of Holders of such Global Security shall be exercised only through the Depositary.

Subject to the procedures of the Depositary, a Global Security shall be exchangeable for Series 2010B Notes registered in the names of persons other than the Depositary or its nominee only if (i) the Depositary notifies the Company that it is unwilling or unable to continue as a Depositary for such Global Security and no successor Depositary shall have been appointed by the Company, or if at any time the Depositary ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, at a time when the Depositary is required to be so registered to act as such Depositary and no successor Depositary shall have been appointed by the Company, in each case within 90 days after the Company receives such notice or becomes aware of such cessation, (ii) the Company in its sole discretion determines that such Global Security shall be so exchangeable, or (iii) there shall have occurred an Event of Default with respect to the Series 2010B Notes.  Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Series 2010B Notes registered in such names as the Depositary shall direct.

SECTION 106.  Transfer.  No service charge will be made for any transfer or exchange of Series 2010B Notes, but payment will be required of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith.  The Company shall not be required (a) to issue, transfer or exchange any Series 2010B Notes during a period 

 

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beginning at the opening of business fifteen (15) days before the date of the mailing of a notice pursuant to Section 1104 of the Original Indenture identifying the serial numbers of the Series 2010B Notes to be called for redemption, and ending at the close of business on the day of the mailing, or (b) to transfer or exchange any Series 2010B Notes theretofore selected for redemption in whole or in part, except the unredeemed portion of any Series 2010B Note redeemed in part.

SECTION 107.  Redemption at the Company’s Option.  The Series 2010B Notes will be subject to redemption at the option of the Company, in whole or in part, at any time and from time to time, upon not less than 30 nor more than 60 days’ notice, at a redemption price (the “Redemption Price”) equal to the greater of (1) 100% of the principal amount of the Series 2010B Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Series 2010B Notes being redeemed (not including any portion of such payments of interest accrued to the Redemption Date) discounted (for purposes of determining present value) to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at a discount rate equal to the Treasury Yield plus 20 basis points, plus, in each case, accrued interest thereon to the Redemption Date.

In the event of redemption of the Series 2010B Notes in part only, a new Series 2010B Note or Notes for the unredeemed portion will be issued in the name or names of the Holders thereof upon the surrender thereof.

Notice of redemption shall be given as provided in Section 1104 of the Original Indenture except that any notice of redemption shall not specify the Redemption Price but only the manner of calculation thereof.  The Trustee shall not be responsible for the calculation of the Redemption Price.  The Company shall calculate the Redemption Price and promptly notify the Trustee thereof.

Any redemption of less than all of the Series 2010B Notes shall, with respect to the principal thereof, be divisible by $1,000.

ARTICLE 2

Miscellaneous Provisions

SECTION 201.  Recitals by Company.  The recitals in this Seventeenth Supplemental Indenture are made by the Company only and not by the Trustee, and all of the provisions contained in the Original Indenture in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect of Series 2010B Notes and of this Seventeenth Supplemental Indenture as fully and with like effect as if set forth herein in full.

 

 

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SECTION 202.  Ratification and Incorporation of Original Indenture.  As heretofore supplemented and as supplemented hereby, the Original Indenture is in all respects ratified and confirmed, and the Original Indenture as heretofore supplemented and as supplemented by this Seventeenth Supplemental Indenture shall be read, taken and construed as one and the same instrument.

SECTION 203.  Executed in Counterparts.  This Seventeenth Supplemental Indenture may be simultaneously executed in several counterparts, each of which shall be deemed to be an original, and such counterparts shall together constitute but one and the same instrument.

	
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IN WITNESS WHEREOF, each party hereto has caused this instrument to be signed in its name and behalf by its duly authorized officers, all as of the day and year first above written.

	
ATTEST:

 

By:       /s/Terry A. Davis

Terry A. Davis

Assistant Secretary and Assistant Treasurer

 

	
GULF POWER COMPANY

 

By:      /s/Richard S. Teel

Richard S. Teel

Vice President and Chief Financial Officer

 

	  	  
	
ATTEST:

 

By:       /s/Timothy W. Casey

Timothy W. Casey

Senior Associate

 

	
THE BANK OF NEW YORK MELLON, as Trustee

 

By:           /s/Laurence J. O'Brien

Laurence J. O’Brien

Vice President

 

	
 

  

  

  

EXHIBIT A

FORM OF SERIES 2010B NOTE

	
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	 NO. ____ 	 CUSIP NO. 402479CB3

 

 

GULF POWER COMPANY

SERIES 2010B 5.10 % SENIOR NOTE

DUE OCTOBER 1, 2040

	
Principal Amount:

	
$_____________

	
Regular Record Date:

	
15th calendar day prior to Interest Payment Date (whether or not a Business Day)

	
Original Issue Date:

	
September 17, 2010

	
Stated Maturity:

	
October 1, 2040

	
Interest Payment Dates:

	
April 1 and October 1

	
Interest Rate:

	
5.10% per annum

	
Authorized Denominations:

	
$1,000 or any integral multiple thereof

Gulf Power Company, a Florida corporation (the “Company,” which term includes any successor corporation under the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to _____________________, or registered assigns, the principal sum of ___________________________DOLLARS ($___________) on the Stated Maturity shown above (or upon earlier redemption), and to pay interest thereon from the Original Issue Date shown above, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semiannually in arrears on each Interest Payment Date as specified above, commencing April 1, 2011, and on the Stated Maturity (or upon earlier redemption) at the rate per annum shown above until the principal hereof is paid or made available for payment and at such rate on any overdue principal and on any overdue installment of interest.  The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date (other than an Interest Payment Date that is the Stated Maturity or on a Redemption Date) will, as provided in such Indenture, be paid to the Person in whose name this Note (the “Note”) is registered at the close of business on the Regular Record Date as specified above next preceding such Interest Payment Date, provided that any interest payable at the Stated Maturity or on any Redemption Date will be paid to the Person to whom principal is payable.  Except as otherwise provided in the Indenture, any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Note is registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Holders of Notes of this series not less than 10 days prior to such Special Record Date, or be paid at 

 

  

  

  

 

any time in any other lawful manner not inconsistent with the requirements of any securities exchange, if any, on which the Notes of this series shall be listed, and upon such notice as may be required by any such exchange, all as more fully provided in the Indenture.

Payments of interest on this Note will include interest accrued to but excluding the respective Interest Payment Dates.  Interest payments for this Note shall be computed and paid on the basis of a 360-day year of twelve 30-day months.  In the event that any date on which interest is payable on this Note is not a Business Day, then payment of the interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of any such delay), with the same force and effect as if made on the date the payment was originally payable.  A “Business Day” shall mean any day other than a Saturday or a Sunday or a day on which banking institutions in New York City are authorized or required by law or executive order to remain closed or a day on which the Corporate Trust Office of the Trustee is closed for business.

Payment of the principal of and interest due at the Stated Maturity or earlier redemption of the Series 2010B Notes shall be made upon surrender of the Series 2010B Notes at the Corporate Trust Office of the Trustee.  The principal of and interest on the Series 2010B Notes shall be paid in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.  Payment of interest (including interest on an Interest Payment Date) will be made, subject to such surrender where applicable, at the option of the Company, (i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or (ii) by wire transfer or other electronic transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least 16 days prior to the date for payment by the Person entitled thereto.

REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

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

	
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IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal.

Dated:

	  	
GULF POWER COMPANY

 

 

 

By: ____________________________________________________                      

Title:

	  	  
	
Attest:

 

 

 

_______________________________________________

Title:

 

	  

{Seal of GULF POWER COMPANY appears here}

 

	
 

  

  

  

CERTIFICATE OF AUTHENTICATION

This is one of the Senior Notes referred to in the within-mentioned Indenture.

	  	
THE BANK OF NEW YORK MELLON,

as Trustee

 

 

By:    _________________________________                                     

Authorized Signatory

	
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(Reverse Side of Note)

This Note is one of a duly authorized issue of Senior Notes of the Company (the “Notes”), issued and issuable in one or more series under a Senior Note Indenture, dated as of January 1, 1998, as supplemented (the “Indenture”), between the Company and The Bank of New York Mellon (as successor to JPMorgan Chase Bank, N.A. (formerly known as The Chase Manhattan Bank)), as Trustee (the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures incidental thereto reference is hereby made for a statement of the respective rights, limitation of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Notes issued thereunder and of the terms upon which said Notes are, and are to be, authenticated and delivered.  This Note is one of the series designated on the face hereof as Series 2010B 5.10% Senior Notes due October 1, 2040 (the “Series 2010B Notes”) which is unlimited in aggregate principal amount.  Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Indenture.

The Series 2010B Notes will be subject to redemption at the option of the Company, in whole or in part, at any time and from time to time, upon not less than 30 nor more than 60 days’ notice at a redemption price (the “Redemption Price”) equal to the greater of (i) 100% of the principal amount of the Series 2010B Notes to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Series 2010B Notes being redeemed (not including any portion of such payments of interest accrued to the Redemption Date) discounted (for purposes of determining present value) to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at a discount rate equal to the Treasury Yield plus 20 basis points, plus, in each case, accrued interest thereon to the Redemption Date.

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

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Series 2010B Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Series 2010B Notes.

“Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Company obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations.

“Independent Investment Banker” means an independent investment banking institution of national standing appointed by the Company.

 

 

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“Reference Treasury Dealer” means a primary United States Government securities dealer appointed by the Company.

“Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount and quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m. on the third Business Day in New York City preceding such Redemption Date).

The Trustee shall not be responsible for the calculation of the Redemption Price.  The Company shall calculate the Redemption Price and promptly notify the Trustee thereof.

In the event of redemption of this Note in part only, a new Note or Notes of this series for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the surrender hereof.

The Series 2010B Notes will not have a sinking fund.

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

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Notes of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of not less than a majority in principal amount of the Notes at the time Outstanding of each series to be affected.  The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Notes of each series at the time Outstanding, on behalf of the Holders of all Notes of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

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

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Security Register, upon surrender of this Note for registration of transfer at the office or agency of the Company for such purpose, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar and duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of this series, of 

 

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authorized denominations and of like tenor and for the same aggregate principal amount, will be issued to the designated transferee or transferees.  No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

The Notes of this series are issuable only in registered form without coupons in denominations of $1,000 and any integral multiple thereof.  As provided in the Indenture and subject to certain limitations therein set forth, Notes of this series are exchangeable for a like aggregate principal amount of Notes of this series of a different authorized denomination, as requested by the Holder surrendering the same upon surrender of the Note or Notes to be exchanged at the office or agency of the Company.

This Note shall be governed by, and construed in accordance with, the internal laws of the State of New York.

	
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ABBREVIATIONS

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

	
TEN COM-

	
as tenants in

common

	
UNIF GIFT MIN ACT- _______ Custodian ________

                                           (Cust)                           (Minor)

	
TEN ENT-

	
as tenants by the

 entireties

	  	  
	
JT TEN-

	
as joint tenants

	  	
under Uniform Gifts to

	  	
with right of

	  	
Minors Act

	  	
survivorship and

	  	  
	  	
not as tenants

	  	
________________________

	  	
in common

	  	
(State)

Additional abbreviations may also be used

though not on the above list.

FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto

 

(please insert Social Security or other identifying number of assignee)

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE OF ASSIGNEE

 

the within Note and all rights thereunder, hereby irrevocably constituting and appointing

agent to transfer said Note on the books of the Company, with full power of substitution in the premises.

	
Dated:  _______________________                                         

	  
	  	  

NOTICE:  The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular without alteration or enlargement, or any change whatever.

	
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EXHIBIT B

CERTIFICATE OF AUTHENTICATION

This is one of the Senior Notes referred to in the within-mentioned Indenture.

	  	
THE BANK OF NEW YORK MELLON,

as Trustee

 

 

By:  _____________________________________                                                                     

Authorized Signatory

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