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ITC HOLDINGS CORP.
 EMPLOYEE STOCK PURCHASE PLAN
 (Effective May 17, 2006)




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Table of Contents
 PageI.      GENERAL PROVISIONS
    
    
    11.1
    
    Establishment
    
    
    11.2
    
    Purpose
    
    
    11.3
    
    Plan Duration
    
    
    11.4
    
    Definitions
    
    
    11.5
    
    Stock
    
    
    31.6
    
    Administration
    
    
    31.7
    
    Participants
    
    
    4II.     OFFER TERMS
    
    
    42.1
    
    Offer and Purchase Period
    
    
    42.2
    
    Option Price
    
    
    42.3
    
    Participation
    
    
    52.4
    
    Participation Limitations
    
    
    62.5
    
    Termination of Employment
    
    
    62.6
    
    Restrictions on Transfer
    
    
    6III.      MISCELLANEOUS
    
    
    63.1
    
    Non-Assignability
    
    
    63.2
    
    Adjustments
    
    
    63.3
    
    Change in Control
    
    
    73.4
    
    Termination and Amendment
    
    
    83.5
    
    Rights Prior to Issuance of Shares
    
    
    83.6
    
    Securities Laws
    
    
    83.7
    
    Delivery of Plan
    
    
    83.8
    
    Effect on Employment
    
    
    83.9
    
    Certificates
    
    
    93.10
    
    Use of Proceeds
    
    
    93.11
    
    Approval of Plan
    
    
    93.12
    
    Governing Law
    
    
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ITC HOLDINGS CORP.
EMPLOYEE STOCK PURCHASE PLAN
 I. GENERAL PROVISIONS
 1.1 Establishment
 1.2 Purpose .
 1.3 Plan Duration
 1.4 Definitions .
 (a) Board
 (b) Code
 (c) Change in Control
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(d) Committee
 (e) Common Stock
 (f) Corporation
 (g) Election Period
 (h) Employee
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(i) Exchange Act
 (j) Fair Market Value
 (k) Offer
 (l) Option Price
 (m) Plan
 (n) Purchase Period
 (o) Stock Exchange
 (p) Subsidiary
 1.5 Stock .
 1.6 Administration .
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1.7 Participants .
 II. OFFER TERMS
 2.1
Offer and Purchase Period
 (a)
 (b)
 2.2 Option Price
 (a)
 (i)
    
    85% of the Fair Market Value of a share of
Common Stock on the date of grant of the option (first day of a
Purchase Period), or(ii)
    
    85% of the Fair Market Value of a share of
Common Stock on the date the option is deemed exercised pursuant to
Section 2.4(d) (last day of a Purchase Period).
 (b)
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2.3 Participation
 (a)
 (b)
 (c)
 (d)
 (e)
 (f)
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(g)
 2.4 Participation Limitations
 (a)
 (b)
 2.5 Termination of Employment .
 2.6 Restrictions on Transfer
 III. MISCELLANEOUS
 3.1 Non-Assignability .
 3.2 Adjustments .
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3.3 Change in Control
 (a)
 (b)
 (c)
 (d)
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3.4 Termination and Amendment
 (a) th
 (b)
 (c)
 3.5 Rights Prior to Issuance of Shares .
 3.6 Securities Laws
 3.7 (a)
 (b)
 3.8 Delivery of Plan .
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3.9 Effect on Employment .
 3.10 Certificates .
 3.11 Use of Proceeds .
 3.12 Approval of Plan .
 3.13 Governing Law .
 th
 ITC HOLDINGS CORP.By:
    /s/ Daniel J. OginskyIts:
   Vice President, General Counsel and Secretary BOARD APPROVAL:
    
    2/8/2006SHAREHOLDER APPROVAL:
    
    5/17/2006BOARD AMENDMENT:
    
    6/8/2007
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