Document:

SWEPCo 8K 03-26-2015 Ex 4a

Exhibit 4(a)

	
	
	 

SOUTHWESTERN ELECTRIC POWER COMPANY

and

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.
AS TRUSTEE

___________________

TENTH SUPPLEMENTAL INDENTURE

Dated as of March 1, 2015

Supplemental to the Indenture
dated as of February 25, 2000

3.90% Senior Notes, Series J, due 2045

	
	
	 

TENTH SUPPLEMENTAL INDENTURE, dated as of March 1, 2015, between SOUTHWESTERN ELECTRIC POWER COMPANY, a corporation duly organized and existing under the laws of the State of Delaware (the “Company”), and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association formed under the laws of the United States, as Trustee under the Original Indenture referred to below (the “Trustee”). 

RECITALS OF THE COMPANY

The Company has heretofore executed and delivered to the Trustee an indenture dated as of February 25, 2000 (the “Original Indenture”), to provide for the issuance from time to time of its debentures, notes or other evidences of indebtedness (the “Senior Notes”), the form and terms of which are to be established as set forth in Sections 201 and 301 of the Original Indenture.

Section 901 of the Original Indenture provides, among other things, that the Company and the Trustee may enter into indentures supplemental to the Original Indenture for, among other things, the purpose of establishing the form and terms of the Senior Notes of any series as permitted in Sections 201 and 301 of the Original Indenture.

The Company desires to create a series of the Senior Notes in an aggregate principal amount of $400,000,000 to be designated the “3.90% Senior Notes, Series J, due 2045” (the “Series J Notes”), and all action on the part of the Company necessary to authorize the issuance of the Series J Notes under the Original Indenture and this Tenth Supplemental Indenture has been duly taken.

All acts and things necessary to make the Series J Notes, when executed by the Company and completed, authenticated and delivered by the Trustee as provided in the Original Indenture and this Tenth Supplemental Indenture, the valid and binding obligations of the Company and to constitute these presents a valid and binding supplemental indenture and agreement according to its terms, have been done and performed.

NOW, THEREFORE, THIS TENTH SUPPLEMENTAL INDENTURE WITNESSETH:

That in consideration of the premises and of the acceptance and purchase of the Series J Notes by the Holders thereof and of the acceptance of this trust by the Trustee, the Company covenants and agrees with the Trustee, for the equal benefit of the Holders of the Series J Notes, as follows:

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ARTICLE ONE
Definitions

SECTION 101.    Definitions.

The use of the terms and expressions herein is in accordance with the definitions, uses and constructions contained in the Original Indenture and the form of the Series J Note attached hereto as Exhibit A.

ARTICLE TWO
Terms and Issuance of the Series J Notes

SECTION 201.    Issue of Series J Notes.

A series of Senior Notes which shall be designated the “3.90%  Senior Notes, Series J, due 2045” shall be executed, authenticated and delivered from time to time in accordance with the provisions of, and shall in all respects be subject to, the terms, conditions and covenants of, the Original Indenture and this Tenth Supplemental Indenture (including the form of Series J Note set forth in Exhibit A hereto).  The aggregate principal amount of the Series J Notes which may be authenticated and delivered under this Tenth Supplemental Indenture shall initially be $400,000,000, and such principal amount of the Series J Notes may be increased from time to time.  All Series J 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 the issuance of additional Series J Notes.  Any such additional Series J Notes will have the same interest rate, maturity and other terms as those initially issued (other than the date of issuance, the issue price and, in some circumstances, the initial interest accrual date and initial interest payment date).  

SECTION 202.    Form of Series J Notes; Incorporation of Terms.

The Series J Notes shall be issued initially in the form of one Global Security.  The form of the Series J Notes shall be substantially in the form of the Global Security attached hereto as Exhibit A.  The terms of such Series J Notes are herein incorporated by reference and are part of this Tenth Supplemental Indenture.

SECTION 203.    Depositary for Global Securities.

The Depositary for any Global Securities of the series of which this Series J Note is a part shall be The Depository Trust Company in The City of New York.

SECTION 204.    Restrictions on Liens.

The covenant contained in Section 1007 of the Original Indenture shall not be applicable to the Series J Notes.

So long as any of the Series J Notes are outstanding, the Company will not create or suffer to be created or to exist any additional mortgage, pledge, security interest, or other lien 

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(collectively “Liens”) on any of its utility properties or tangible assets now owned or hereafter acquired to secure any indebtedness for borrowed money (“Secured Debt”), without providing that the Series J Notes will be similarly secured.  This restriction does not apply to the Company's subsidiaries, nor will it prevent any of them from creating or permitting to exist Liens on their property or assets to secure any Secured Debt.  In addition, this restriction does not prevent the creation or existence of:
	
			
	 
	(a)
	Liens on property existing at the time of acquisition or construction of such property (or created within one year after completion of such acquisition or construction), whether by purchase, merger, construction or otherwise, or to secure the payment of all or any part of the purchase price or construction cost thereof, including the extension of any Liens to repairs, renewals, replacements, substitutions, betterments, additions, extensions and improvements then or thereafter made on the property subject thereto;

	 
	 
	 

	 
	(b)
	Financing of the Company's accounts receivable for electric service;

	 
	 
	 

	 
	(c)
	Any extensions, renewals or replacements (or successive extensions, renewals or replacements), in whole or in part, of liens permitted by the foregoing clauses; and

	 
	 
	 

	 
	(d)
	The pledge of any bonds or other securities at any time issued under any of the Secured Debt permitted by the above clauses.

In addition to the permitted issuances above, Secured Debt not otherwise so permitted may be issued in an amount that does not exceed 15% of Net Tangible Assets as defined below.  

“Net Tangible Assets” means the total of all assets (including revaluations thereof as a result of commercial appraisals, price level restatement or otherwise) appearing on the Company’s balance sheet, net of applicable reserves and deductions, but excluding goodwill, trade names, trademarks, patents, unamortized debt discount and all other like intangible assets (which term shall not be construed to include such revaluations), less the aggregate of the Company’s current liabilities appearing on such balance sheet.  For purposes of this definition, the Company’s balance sheet does not include assets and liabilities of its subsidiaries.

This restriction also does not apply to or prevent the creation or existence of leases made, or existing on property acquired, in the ordinary course of business.

SECTION 205.    Place of Payment.

The Place of Payment in respect of the Series J Notes will be at the principal office or place of business of the Trustee or its successor in trust under the Indenture, which, at the date hereof, is located at 2 North LaSalle Street, Chicago, IL  60602, Attention: Corporate Trust Administration.

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SECTION 206.    Optional Redemption.

The Series J Notes may be redeemed at the Company’s option at any time upon no more than 60 and not less than 30 days’ notice by mail.  At any time prior to October 1, 2044, the Company may redeem the Series J Notes either as a whole or in part at a redemption price equal to the greater of (1) 100% of the principal amount of the  Series J Notes being redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Series J Notes being redeemed (excluding the portion of any such interest accrued to but excluding the date of redemption) discounted (for purposes of determining present value) to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 25 basis points, plus, in each case, accrued and unpaid interest thereon to but excluding the date of redemption.  At any time on or after October 1, 2044, the Company may redeem the Series J Notes in whole or in part at 100% of the principal amount of the Series J Notes being redeemed, plus accrued and unpaid interest thereon to but excluding the date of redemption.

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term (“remaining life”) of the Series J Notes 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 life of the Series J Notes.

“Comparable Treasury Price” means, with respect to any redemption date, (1) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (2) if the Company obtains fewer than four of such Reference Treasury Dealer Quotations, the average of all such quotations.

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Company and notified by the Company to the Trustee.

“Reference Treasury Dealer” means a primary U.S. Government securities dealer or dealers selected by the Company and notified by the Company to the Trustee.

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Company and notified to the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company and the Trustee by such Reference Treasury Dealer at or before 3:30 p.m., New York City time, on the third Business Day preceding such redemption date.

“Treasury Rate” means, with respect to any redemption, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated using 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.

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SECTION 207.    Sinking Funds.

Article Twelve of the Indenture shall not apply to the Series J Notes.

SECTION 208.    Regular Record Date.

The “Regular Record Date” will be the March 15 or September 15, as the case may be, next preceding an interest payment date (whether or not a Business Day).

ARTICLE THREE
Miscellaneous

SECTION 301.    Execution as Supplemental Indenture.

This Tenth Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Original Indenture and, as provided in the Original Indenture, this Tenth Supplemental Indenture forms a part thereof.

SECTION 302.    Conflict with Trust Indenture Act.

If any provision hereof limits, qualifies or conflicts with another provision hereof which is required to be included in this Tenth Supplemental Indenture by any of the provisions of the Trust Indenture Act, such required provision shall control. 

SECTION 303.    Effect of Headings.

The Article and Section headings herein are for convenience only and shall not affect the construction hereof.

SECTION 304.    Successors and Assigns.

All covenants and agreements by the Company in this Tenth Supplemental Indenture shall bind its successors and assigns, whether so expressed or not.

SECTION 305.    Separability Clause.

In case any provision in this Tenth Supplemental Indenture or in the Series J Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

SECTION 306.    Benefits of Tenth Supplemental Indenture.

Nothing in this Tenth Supplemental Indenture or in the Series J Notes, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder and 

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the Holders, any benefit or any legal or equitable right, remedy or claim under this Tenth Supplemental Indenture.

SECTION 307.    Execution and Counterparts.

This Tenth Supplemental Indenture may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

SECTION 308. Certain Tax Information.  

In order to comply with applicable tax laws (inclusive of rules, regulations and interpretations promulgated by competent authorities) related to the Original Indenture, this Tenth Supplemental Indenture and the Series J Notes in effect from time to time (“Applicable Law”) that a foreign financial institution, issuer, trustee, paying agent or other party is or has agreed to be subject to, the Company agrees (i) to provide to the Trustee sufficient information about the parties and/or transactions (including any modification to the terms of such transactions) so the Trustee can determine whether it has tax related obligations under Applicable Law and (ii) that the Trustee shall be entitled to make any withholding or deduction from payments to the extent necessary to comply with Applicable Law for which the Trustee shall not have any liability.     

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IN WITNESS WHEREOF, the parties hereto have caused this Tenth Supplemental Indenture to be duly executed and attested, all as of the day and year first above written. 

SOUTHWESTERN ELECTRIC POWER COMPANY

By:     /s/ Renee V. Hawkins
Name:    Renee V. Hawkins
Title:    Assistant Treasurer

Attest:

/s/ Thomas G. Berkemeyer
Name:    Thomas G. Berkemeyer
Title:    Assistant Secretary 

THE BANK OF NEW YORK MELLON
TRUST COMPANY, N.A., as Trustee 

By:  /s/ Jonathan W. Glover
Authorized Signatory    

Attest:

/s/ Lawrence M. Kusch 
Authorized Signatory    

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EXHIBIT A

This Security is a Global Security within the meaning of the Indenture hereinafter referred to and is registered in the name of a Depositary or a nominee of a Depositary.  This Security is exchangeable for Securities registered in the name of a Person other than the Depositary or its nominee only in the limited circumstances described in the Indenture, and no transfer of this Security (other than a transfer of this Security 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 certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to Southwestern Electric Power Company or its agent for registration of transfer, exchange or payment, and any definitive certificate 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 in as much as the registered owner hereof, Cede & Co., has an interest herein.

No. R-1

SOUTHWESTERN ELECTRIC POWER COMPANY
3.90% Senior Notes, Series J, due 2045

CUSIP No. 845437 BN1                                       $400,000,000

SOUTHWESTERN ELECTRIC POWER COMPANY, a corporation duly organized and existing under the laws of the State of Delaware (the “Company”, which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO. or registered assigns, the principal sum of FOUR HUNDRED Million Dollars ($400,000,000) on April 1, 2045 (the “Final Maturity”), and to pay interest thereon from March 26, 2015 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on April 1 and October 1 each year, commencing October 1, 2015, at the interest rate per annum specified above, until the principal amount shall have been paid or duly provided for.  Interest shall be computed on the basis of a 360-day year of twelve 30-day months.

The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the March 15 or September 15 (whether or not a Business Day) immediately preceding the Interest Payment Date.  Any such interest not so

A-1

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 Security (or one or more Predecessor Securities) 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 Securities 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 on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture.

Payment of the principal of (and premium, if any) and interest on this Security will be made at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, The City of New York, New York, in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private debts; provided, however, that at the option of the Company payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register.

This Security has initially been issued in the form of a Global Security, and the Company has initially designated The Depository Trust Company (the “Depositary”, which term shall include any successor depositary) as the depositary for this Security.  For as long as this Security or any portion hereof is issued in such form, and notwithstanding the previous paragraph, all payments of interest, principal and other amounts in respect of this Security or portion thereof shall be made to the Depositary or its nominee in accordance with the Applicable Procedures in the coin or currency specified above and as further provided herein.

This Security is one of a duly authorized issue of securities of the Company (the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of February 25, 2000, as amended and supplemented from time to time (the “Indenture”, which term shall have the meaning assigned to it in such instrument), between the Company and The Bank of New York Mellon Trust Company, N.A., a national banking association formed under the laws of the United States, as Trustee (the “Trustee”, which term includes any successor trustee under the Indenture), as to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders and of the terms upon which the Securities are, and are to be, authenticated and delivered.  This Security is one of the series designated on the face hereof, limited in aggregate principal amount to $400,000,000; provided, however, the aggregate principal amount hereof can be increased, without the consent of the Holder, as permitted by the provisions of the Original Indenture.  The provisions of this Security, together with the provisions of the Indenture, shall govern the rights, obligations, duties and immunities of the Holder, the Company and the Trustee with respect to this Security, provided that, if any provision of this Security necessarily conflicts with any provision of the Indenture, the provision of this Security shall be controlling to the fullest extent permitted under the Indenture.

The Securities of this Series are subject to redemption upon not less than 30 nor more than 60 days’ notice by mail to the Holders of such Securities at their addresses in the Security 

A-2

Register for such Series.  At any time prior to October 1, 2044, the Company may redeem the Securities either as a whole or in part at a redemption price equal to the greater of (1) 100% of the principal amount of the Securities being redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Securities being redeemed (excluding the portion of any such interest accrued to but excluding the date of redemption) discounted (for purposes of determining present value) to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 25 basis points, plus, in each case, accrued and unpaid interest thereon to but excluding the date of redemption.  At any time on or after October 1, 2044, the Company may redeem the Securities in whole or in part at 100% of the principal amount of the Securities being redeemed, plus accrued and unpaid interest thereon to but excluding the date of redemption.

            “Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term (“remaining life”) of the Securities 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 life of the Securities.

            “Comparable Treasury Price” means, with respect to any redemption date, (1) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (2) if the Company obtains fewer than four of such Reference Treasury Dealer Quotations, the average of all such quotations.

            “Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Company and notified by the Company to the Trustee.

            “Reference Treasury Dealer” means a primary U.S. Government securities dealer or dealers selected by the Company and notified by the Company to the Trustee.

            “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Company and notified to the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company and the Trustee by such Reference Treasury Dealer at or before 3:30 p.m., New York City time, on the third Business Day preceding such redemption date.

            “Treasury Rate” means, with respect to any redemption, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated using 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.

If notice has been given as provided in the Indenture and funds for redemption of any Securities (or any portion thereof) called for redemption shall have been made available on the Redemption Date referred to in such notice, such Securities (or any portion thereof) will cease to

A-3

bear interest on the date fixed for such redemption specified in such notice and the only right of the Holders of such Securities will be to receive payment of the Redemption Price.
In the event of redemption of this Security in part only, a new Security or Securities of this Series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof.

The Securities of this series will not be subject to any sinking fund.

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

Interest payments with respect to this Security will be computed and paid on the basis of a 360-day year of twelve 30-day months for the actual number of days elapsed.

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 Securities 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 a majority in principal amount of the Securities at the time Outstanding of all series to be affected (voting as a class).  The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each Series at the time Outstanding, on behalf of the Holders of all Securities 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 Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

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

This Security shall be exchangeable for Securities registered in the names of Persons other than the Depositary with respect to such series or its nominee only as provided in the Indenture.  This Security shall be so exchangeable if (x) the Depositary notifies the Company that it is unwilling or unable to continue as Depositary for such series or at any time ceases to be a clearing agency registered as such under the Exchange Act, (y) the Company executes and delivers to the Trustee an Officers’ Certificate providing that this Security shall be so exchangeable or (z) there shall have occurred and be continuing an Event of Default with respect to the Securities of such series.  Securities so issued in exchange for this Security shall be of the same series, having the same interest rate, if any, and maturity and having the same terms as this Security, in authorized denominations and in the aggregate having the same principal amount as this Security and registered in such names as the Depositary for such Global Security shall direct.

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As provided in the Indenture and subject to certain limitations therein set forth, the transfer of a Security of the series of which this Security is a part is registrable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this Series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.

The Securities of this Series are issuable only in registered form without coupons in denominations of $1,000 and integral multiples in excess thereof.  As provided in the Indenture and subject to certain limitations therein set forth, Securities of this Series are exchangeable for a like aggregate principal amount of Securities of this Series and of like tenor of any authorized denomination, as requested by the Holder surrendering the same.

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 Security 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 Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

For so long as this Security is issued in the form of a Global Security, any notice to be given to the Holder of this Security shall be deemed to have been duly given to such Holder when given to the Depositary, or its nominee, in accordance with its Applicable Procedures.  Neither the Company nor the Trustee will have any responsibility with respect to those policies and procedures or for any notices or other communications among the Depositary, its direct and indirect participants and the beneficial owners of this Security in global form.

If at any time this Security is not represented by a Global Security, any notice to be given to the Holder of this Security shall be deemed to have been duly given to such Holder upon the mailing of such notice to the Holder at such Holder’s address as it appears on the Security Register maintained by the Company or its agent as of the close of business preceding the day such notice is given.

Neither the failure to give any notice nor any defect in any notice given to the Holder of this Security or any other Security of this series will affect the sufficiency of any notice given to another Holder of any Securities of this series.

The Indenture provides that the Company, at its option, (a) will be discharged from any and all obligations in respect of the Securities (except for certain obligations to register the transfer or exchange of Securities, replace stolen, lost or mutilated Securities, maintain paying 

A-5

agencies and hold moneys for payment in trust) or (b) need not comply with certain restrictive covenants of the Indenture, in each case if the Company deposits, in trust, with the Trustee money or U.S. Government Obligations which, through the payment of interest thereon and principal thereof in accordance with their terms, will provide money, in an amount sufficient to pay all the principal of, and premium, if any, and interest, if any, on the Securities on the dates such payments are due in accordance with the terms of such Securities, and certain other conditions are satisfied.

No recourse shall be had for the payment of the principal of or the interest on this Security, or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, organizer, member, limited partner, stockholder, officer or director, as such, past, present or future, of the Company or any successor Person, 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.

This Security shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflict of law except Section 5-1401 of the New York General Obligations Law.

All terms used in this Security which are defined in the Indenture shall have the meanings ascribed to them in the Indenture. 

Unless the certificate of authentication hereon has been executed by the Trustee referred to herein by manual signature, this Security shall not be entitled to any benefit under the

A-6

Indenture or be valid or obligatory for any purpose. 

IN WITNESS WHEREOF, Southwestern Electric Power Company has caused this instrument to be duly executed.
	
			
	 
	SOUTHWESTERN ELECTRIC POWER COMPANY

	 
	 
	 

	 
	 
	 

	 
	By:
	____________

	 
	 
	Treasurer

This is one of the Securities of the series designated herein and referred to in the within-mentioned Indenture.
	
			
	Dated:  March 26, 2015
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

	 
	 
	 

	 
	 
	 

	 
	By:
	_______________________

	 
	 
	Authorized Signatory

A-7

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

(PLEASE INSERT SOCIAL SECURITY OR OTHER
   IDENTIFYING NUMBER OF ASSIGNEE)

_______________________________________

________________________________________________________________

________________________________________________________________
(PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF
________________________________________________________________
ASSIGNEE) the within Note and all rights thereunder, hereby
________________________________________________________________
irrevocably constituting and appointing such person attorney to 
________________________________________________________________
transfer such Note on the books of the Issuer, 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 Note in every particular, without alteration or enlargement or any change whatever and NOTICE:  Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agents Medallion Program (“STAMP”), the Stock Exchange Medallion Program (“SEMP”) or the New York Stock Exchange, Inc. Medallion Signature Program (“MSP”).

A-82015 Form of Profitable Growth Incentive Award Agreement

 Exhibit 10.1 

2015 FORM OF PROFITABLE GROWTH INCENTIVE 

AWARD AGREEMENT AND TERMS AND CONDITIONS 

PROFITABLE GROWTH INCENTIVE FOR 201   - 201   

AWARD AGREEMENT 
 [2-Year
Performance Period] 
 [Name], 
 Congratulations! On
                                     201  ,
Leggett & Platt, Incorporated (the “Company”) granted you a Profitable Growth Incentive Award (the “Award”) under the Company’s Flexible Stock Plan (the “Stock Plan”). The Award is
granted subject to the enclosed Terms and Conditions – Profitable Growth Incentive (201   – 201  ) (the “Terms and Conditions”). 

You have been granted a base Award of              growth performance stock units
(“GPSUs”). The number of GPSUs for your base Award was determined by multiplying your current annual base salary by your Award multiple (set by Senior Management and approved by the Compensation Committee), and dividing this amount
by the average closing share price of the Company’s stock for the 10 business days following the 201   [prior year] fourth quarter earnings release. 

A percentage of your base Award will vest on December 31, 201   [end of 2-year Performance Period] and will be paid out in a combination
of cash and shares of the Company’s common stock by March 15, 201   [subsequent year]. Fifty percent of your vested Award will be paid out in cash, and the Company intends to pay out the remaining 50% in shares of the
Company’s common stock. 
 As described in the Terms and Conditions, the payout you ultimately receive from this Award depends on [the
Company’s] [the              Segment’s] [the              Business Unit’s, etc.] EBITDA Margin
and Revenue Growth during the 201   – 201   Performance Period. 
 A percentage of your base Award will vest (ranging
from 0% to 250%), according to the schedule below: 
  

																																					
	EBITDA
Margin	 	Award Payout Percentage	 
	X+7%	 	 	0	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	X+6%	 	 	0	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	X+5%	 	 	0	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	X+4%	 	 	0	% 	 	 	138	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	X+3%	 	 	0	% 	 	 	100	% 	 	 	138	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	X+2%	 	 	0	% 	 	 	75	% 	 	 	100	% 	 	 	138	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	X+1%	 	 	0	% 	 	 	50	% 	 	 	75	% 	 	 	100	% 	 	 	138	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 
	X%	 	 	0	% 	 	 	25	% 	 	 	50	% 	 	 	75	% 	 	 	100	% 	 	 	138	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 
	<X%	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 
		 	 	<Y	% 	 	 	Y	% 	 	 	Y+1	% 	 	 	Y+2	% 	 	 	Y+3	% 	 	 	Y+4	% 	 	 	Y+5	% 	 	 	Y+6	% 	 	 	Y+7	% 
		 	 	Revenue Growth	  

 By signing below, you confirm that you understand and agree that this Award is granted subject to the Terms and Conditions and
the Stock Plan, and that the Terms and Conditions are included in this Agreement by reference. A summary of the Flexible Stock Plan and the Company’s most recent Annual Report to Shareholders are available upon request to the Corporate Human
Resources Department. 
  

			
	Accepted and Agreed:	  	
		
	                                      
                                         
             	  	Date:                                    
                                         
                

 This award letter and the enclosed materials are part of a prospectus covering securities that have been registered under the
Securities Act of 1933. Neither the Securities & Exchange Commission nor any state securities commission has approved or disapproved these securities or determined if this prospectus is truthful or complete. 

 2015 PROFITABLE GROWTH INCENTIVE 

TERMS AND CONDITIONS 

201   – 201   

[2-year Performance Period] 
 1.
Performance Period. Your payout under this Profitable Growth Incentive Award (the “Award”) will depend on (i) the base award of growth performance stock units (“GPSUs”) shown on your Award
Agreement and (ii) the Company’s or applicable profit centers’ performance during the two-year period beginning January 1, 201   and ending December 31, 201   (the
“Performance Period”). 
 2. Payout Percentage. Your Award Agreement sets forth your Revenue Growth and EBITDA Margin targets
for the Company or applicable profit centers during the Performance Period. Based upon this performance matrix, you can earn up to 250% of your base Award (the “Payout Percentage”). No payout will be earned if either or both of the
Revenue Growth or the EBITDA Margin thresholds are not met. Payouts will be interpolated for achievement falling between the target levels shown in the Award Agreement. 

A. EBITDA Margin for the Company or applicable profit centers is their cumulative Earnings before Interest, Taxes, Depreciation and Amortization
(EBITDA) over the Performance Period divided by the total Revenue over the Performance Period. 
 B. Revenue Growth will be the compound annual
growth rate (“CAGR”) of the total revenue for the Company or applicable profit centers in the second fiscal year of the Performance Period compared to the Base Year Revenue. “Base Year Revenue” is the total revenue
of the Company or applicable profit centers in the fiscal year immediately preceding the Performance Period. 
 C. Weighted GDP Collar. In
determining the Revenue Growth for the Company or applicable profit centers during the Performance Period, the percentage of Revenue Growth will be adjusted by the difference (positive or negative) between the Forecast GDP Growth minus the Actual
GDP Growth, but such adjustment will be made only if the difference is greater than ±1.0%. The “Forecast GDP Growth” is     %, representing the weighted average GDP growth forecast for
201   - 201   [2-Year Performance Period] calculated from data published in the International Monetary Fund’s January 201   World Economic Outlook Update for the United States
(    % weighting), Euro Area (    %), China (    %), Canada (    %) and Mexico (    %). “Actual GDP
Growth” is the weighted average GDP growth for 201   - 201   [2-Year Performance Period] calculated from data published in the International Monetary Fund’s January 201   [subsequent
year] World Economic Outlook Update (or, in the event such publication is unavailable, a reasonable substitute report) for the same geographies and using the same weighting. 

D. Adjustments. The calculations for Revenue Growth and EBITDA Margin will include results from businesses acquired during the Performance Period.
Revenue Growth and EBITDA Margin will exclude results for any businesses divested during the Performance Period, and the divested businesses’ revenue will also be deducted from Base Year Revenue. EBITDA Margin will exclude results from
non-operating branches. EBITDA results will be adjusted to eliminate gain, loss or expense, as determined in accordance with standards established under Generally Accepted Accounting Principles, (i) from non-cash impairments; (ii) related
to loss contingencies identified in Note T to the financial statements in the Company’s 201   [prior year] 10-K; (iii) that are (a) extraordinary, (b) unusual in nature, or (c) infrequent in occurrence;
(iv) related to the disposal of a segment of a business; or (v) related to a change in accounting principle. 
 3. Vesting of Award and Form
of Payout. With the exception of early vesting for circumstances described in Sections 4 and 5, this Award will vest on December 31, 201   [end of 2-Year Performance Period] (the “Vesting Date”), as
described in Section 1. Fifty percent (50%) of your vested Award will be paid out in cash, and the Company intends to pay out the remaining fifty percent (50%) in shares of the Company’s common stock, although the Company
reserves the right to pay up to one hundred percent (100%) of the vested Award in cash. The portion of the Award that is paid in cash is referred to as the “Cash Portion,” and the portion of the Award that is paid in shares of
the Company’s common stock is referred to as the “Stock Portion.” Your vested Award will be paid out as soon as reasonably practicable following the end of the Performance Period but in no event later than March 15,
201   [subsequent year] (the “Payout Date”). On the Payout Date, the Company will issue to you (i) one share of the Company’s common stock for each vested GPSU comprising the Stock Portion of your Award,
subject to reduction 

  
 2 

 
for tax withholding, and (ii) a check with a gross value equal to the closing market price of the Company’s common stock on the last business day of the Performance Period (or the date
of the Change in Control if Section 5 applies) times the number of vested GPSUs comprising the Cash Portion of your Award, subject to reduction for tax withholding. As described in Section 8, the Company will withhold from both the Stock
and Cash Portions of your payout any amount required to satisfy applicable tax withholding requirements. 
 4. Termination of Employment. 

 

	 	a.	Except as provided in Section 4(b) and Section 5, if your employment is terminated for any reason before the Vesting Date, your right to this Award will terminate immediately upon such termination of
employment. Termination of employment and similar terms when used in this Award refer to a termination of employment that constitutes a separation from service within the meaning of Section 409A of the Internal Revenue Code. 

 

	 	b.	If your termination of employment during the Performance Period is due to Retirement (as defined below), death, or Disability (as defined below), you will receive a number of shares following the end of the Performance
Period which are prorated for the number of days during the Performance Period prior to your termination. 

“Retirement” means you voluntarily quit (i) on or after age 65, or (ii) on or after age 55 if you have
at least 20 years of service with the Company or any company or division acquired by the Company. 
 “Disability” means the
inability to substantially perform your duties and responsibilities by reason of any accident or illness that can be expected to result in death or to last for a continuous period of not less than one year; provided, however, the Award shall
continue to vest for 18 months after Disability begins. 
  

	 	c.	The employment relationship will be treated as continuing intact while you are on military, sick leave or other bona fide leave of absence if (i) the Company does not terminate the employment relationship or
(ii) your right to re-employment is guaranteed by statute or by contract. 

 5. Change in Control. If, during the
Performance Period, a Change in Control of the Company (as defined in the Plan) occurs and your employment is terminated either (i) by the Company (for reasons other than Disability or Cause) or (ii) by you for Good Reason, then the
Company (or its successor) will issue to you 250% of your Base Award, within thirty (30) days following your termination of employment (subject to delay until the first day of the first month that is more than six months following your
separation from service to the extent required in Section 16.7 of the Plan, if you are a specified employee within the meaning of Section 409A of the Internal Revenue Code). 

 

	 	a.	Termination by Company for Cause. Termination for “Cause” under this Agreement shall be limited to the following: 

 

	 	i.	Your conviction of any crime involving money or other property of the Company or any of its affiliates (including entering any plea bargain admitting criminal guilt), or a conviction of any other crime (whether or not
involving the Company or any of its affiliates) that constitutes a felony in the jurisdiction involved; or 

  

	 	ii.	Your willful act or omission involving fraud, misappropriation, or dishonesty that (i) causes material injury to the Company or (ii) results in a material personal enrichment to you at the expense of the
Company; or 

  

	 	iii.	Your continued, repeated, willful failure to substantially perform your duties; provided, however, that no discharge shall be deemed for Cause under this subsection (a) unless you first receive written notice from
the Company advising you of specific acts or omissions alleged to constitute a failure to perform your duties, and such failure continues after you have had a reasonable opportunity to correct the acts or omissions so complained of.

  
 3 

 A termination shall not be deemed for Cause if, for example, the termination results from the Company’s
determination that your position is redundant or unnecessary or that your performance is unsatisfactory. 
  

	 	b.	Termination by Executive for Good Reason. You may terminate your employment for “Good Reason” following a Change in Control by giving notice of termination to the Company during the
Performance Period following (i) any action or omission by the Company described in this Section or (ii) receipt of notice from the Company of the Company’s intention to take any such action or engage in any such omission.

 The actions or omissions which may lead to a termination of employment for Good Reason are as follows: 

 

	 	i.	A reduction by the Company in your base salary as in effect immediately prior to the Change in Control; or 

  

	 	ii.	A change in your reporting responsibilities, titles or offices as in effect immediately prior to a Change in Control that results in a material diminution within the Company of title, status, authority or
responsibility; or 

  

	 	iii.	A material reduction in your target annual incentive opportunity as in effect immediately prior to the Change in Control, expressed as a percentage of base salary; or 

 

	 	iv.	A requirement by the Company that you be based or perform your duties anywhere other than at the location immediately prior to the Change in Control, except for required travel on the Company’s business to an
extent substantially consistent with your business travel obligations immediately prior to the Change in Control; or 

  

	 	v.	A material reduction in annual target value of your long-term incentive awards as in effect immediately prior to the Change in Control (with the value determined in accordance with generally accepted accounting
standards); or 

  

	 	vi.	A failure by the Company to obtain the assumption agreement to perform this Agreement by any successor as contemplated by Section 13 of this Agreement; or 

 

	 	vii.	Any purported termination of your employment for Disability or for Cause that is not carried out pursuant to a notice of termination which satisfies the requirements of Section 5(c); and for purposes of this
Agreement, no such purported termination shall be effective. 

  

	 	c.	Notice of Termination. Any purported termination by the Company of your employment shall be communicated by notice of termination to the other party. A notice of termination shall set forth, in reasonable
detail, the facts and circumstances claimed to provide a basis for termination of employment under the Section so indicated. 

  

	 	d.	Date of Termination. The date your employment is terminated under this Section 5 is the “Date of Termination.” In cases of Disability, the Date of Termination shall be 30 days after
notice of termination is given (provided that you shall not have returned to the performance of your duties on a full-time basis during such 30-day period). If your employment is terminated for Cause, the Date of Termination shall be the date
specified in the notice of termination. If your employment is terminated for Good Reason, the Date of Termination shall be the date set out in the notice of termination. 

Any dispute by a party hereto regarding a notice of termination delivered to such party must be conveyed to the other party within 30 days after the notice of
termination is given. If the particulars of the dispute are not conveyed within the 30-day period, then the disputing party’s claims regarding the termination shall be forever deemed waived. 

  
 4 

 6. Transferability. The Award may not be transferred, assigned, pledged or otherwise encumbered
until the underlying shares have been issued or settled in cash. 
 7. No Rights as Shareholder. You will not have the rights of a shareholder
with respect to the Stock Portion of the Award until the shares have been issued. You will not have the right to vote the shares or receive any dividends that may be paid on the shares prior to issuance. 

8. Withholding. You will recognize taxable income equal to the fair market value of the shares underlying the Stock Portion of the Award on the
Payout Date plus the dollar value of the Cash Portion of the Award. This amount is subject to ordinary income tax and payroll tax. The Company will withhold (at the Company’s required withholding rate) any amount required to satisfy applicable
tax laws (i) in cash from the Cash Portion of the payout and (ii) in shares from the Stock Portion of the payout. The Company, at its discretion, may allow you to pay the taxes due on the Stock Portion of the payout in cash instead of
shares if you make suitable arrangements with the Company prior to the Payout Date. 
 The income and tax withholding generated by your payout will be
reported on your W-2. If your personal income tax rate is higher than the Company’s minimum required withholding rate, you will owe additional tax on the issuance. After payment of the ordinary income tax, the shares you receive for the Stock
Portion of your payout will have a tax basis equal to the closing price of L&P stock on the Payout Date. 
 9. Noncompetition. For two
years after the Payout Date of this Award, you will not directly or indirectly (i) engage in any Competitive Activity, (ii) solicit orders from or seek or propose to do business with any customer of the Company or its
subsidiaries or affiliates (collectively, the “Companies”) relating to any Competitive Activity, or (iii) influence or attempt to influence any employee, representative or advisor of the Companies to terminate his or her
employment or relationship with the Companies. “Competitive Activity” means any manufacture, sale, distribution, engineering, design, promotion or other activity that competes with any business of the Companies in which you were
involved as an employee, consultant or agent. 
 If you violate the preceding paragraph, then you will pay to the Company any Award Gain you realized from
this Award. “Award Gain” for the Cash Portion of your Award is equal to (i) the cash paid to you on the Payout Date of this Award (including the tax withholding), minus (ii) any non-refundable taxes
paid by you as a result of the distribution. “Award Gain” for the Stock Portion of your Award is equal to (i) the number of shares distributed to you on the Payout Date of this Award times the fair market value of
L&P stock on the Payout Date (including the tax withholding), minus (ii) any non-refundable taxes paid by you as a result of the distribution. 

If any restriction in this Section is deemed unenforceable, then the appropriate court will reduce the scope or other provisions and enforce the restrictions
set out in this section in their reduced form. The covenants in this Section are in addition to any similar covenants under any other agreement between the Company and you. 

10. Repayment of Awards. If, within 24 months after an Award is paid, the Company is required to restate previously reported financial results,
the Committee will require all Award recipients to repay any amounts paid in excess of the amounts that would have been paid based on the restated financial results. The Committee will issue a written Notice of Repayment documenting the corrected
Award calculation and the amount and terms of repayment. 
 In addition, the Committee may require repayment of the entire Award from any Award recipients
determined, in its discretion, to be personally responsible for gross misconduct or fraud that caused the need for the restatement. 
 The Award recipient
must repay the amount specified in the Notice of Repayment. The Committee may, in its discretion, reduce a current year Award payout as necessary to recoup any amounts outstanding under a previously issued Notice of Repayment. 

  
 5 

 11. Award Not Benefit Eligible. This Award will be considered special incentive compensation and
will not be included as earnings, wages, salary or compensation in any pension, retirement, welfare, life insurance or other employee benefit plan or arrangement of the Company. 

12. Plan Controls; Committee. This Award is subject to all terms, provisions and definitions of the Flexible Stock Plan (the
“Plan”), which is incorporated by reference. In the event of any conflict, the Plan will control over this Award. Upon request, a copy of the Plan will be furnished to you. The Plan is administered by a committee of non-employee
directors or their designees (the “Committee”). The Committee’s decisions and interpretations with regard to this Award will be binding and conclusive. 

13. Assignment. The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.
Failure of the Company to obtain such agreement prior to the effectiveness of any such succession shall be a breach of this Award Agreement. As used in the Award Agreement, “Company” means (i) Leggett & Platt,
Incorporated, its subsidiaries and affiliates, and (ii) any successor to its business and/or assets which executes and delivers the agreement provided for in this Section or which otherwise becomes bound by all the terms and provisions of this
Award Agreement by operation of law. 
 14. Other. In the absence of any specific agreement to the contrary, the grant of this Award to you
will not affect any right of the Company or its subsidiaries to terminate your employment or your right to resign from employment. 
 This Award is intended
to comply with the requirements of Section 162(m) of the Internal Revenue Code for performance-based compensation. The Award is also intended to comply with Section 409A of the Internal Revenue Code and shall be construed consistent with
that intent. 
 This Award is entered into and accepted in Carthage, Missouri. The Award will be governed by Missouri law, excluding any conflicts or choice
of law provision that might otherwise refer construction or interpretation of the Award to the substantive law of another jurisdiction. 
 Any action or
proceeding arising from or related to this Award is subject to the exclusive venue and subject matter jurisdiction of the Circuit Court for Jasper County, Missouri or the United States District Court for the Western District of Missouri, and the
parties agree to submit to the jurisdiction of such Courts. The parties also waive the defense of an inconvenient forum and agree not to seek any change of venue from such Courts. 

  
 6

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