Document:

Exhibit 10.10

 

UNIT
PURCHASE [AND STRUCTURING] AGREEMENT1

 

THIS
UNIT PURCHASE [AND STRUCTURING] AGREEMENT (this “Agreement”), dated as of July ___, 2021, is entered into by and among,
Kingfishers L.P., a Delaware limited partnership and Kingstown 1740 Fund, LP a Delaware limited partnership, each located at 34 East
51st Street, 5th Floor, New York, NY 10022 (each a “Seller” and collectively, the “Sellers”)2,
[___], a [●] located at [●] (the “Buyer”), Inflection Point Holdings LLC, a Cayman Islands limited liability
company (the “Company”), the Company’s manager, Kingstown Capital Management, LP (the “Manager”)
[and, solely for purposes of Section 6 and Section 26, Inflection Point Acquisition Corp. a Cayman Islands exempted company
(“IPAC”)].

 

WHEREAS,
Kingfisher L.P. owns [●] Class Y Units of the Company and Kingstown 1740 Fund, LP owns [●] Class Y Units of the Company;

 

WHEREAS,
the Company is the sponsor of IPAC;

 

WHEREAS,
IPAC is a special purpose acquisition company formed for the purpose of effecting a merger, share exchange, asset acquisition, share
purchase, reorganization or similar business combination with one or more businesses (a “Business Combination”);

 

WHEREAS,
IPAC has filed with the U.S. Securities and Exchange Commission (the “SEC”) a registration statement on Form S-1
(the “Registration Statement”) for its initial public offering (“IPO”) of 30.0 million units (or
34.50 million units if the underwriters of the IPO (the “Underwriters”) exercise their over-allotment option in full)
at a price of $10.00 per unit (“Unit”), each comprised of one Class A ordinary share of IPAC, par value $0.0001 per
share (the “Class A Shares”), and one-half of one redeemable warrant, with each whole warrant exercisable to purchase
one Class A Share at an exercise price of $11.50 per share (the “Warrants”);

 

WHEREAS,
following effectiveness of the Registration Statement, IPAC may increase the base number of Units to be sold in the IPO by up to 20%
(such increase, an “Upsizing”) which will be subject to the Underwriter’s over-allotment option;

 

WHEREAS,
the Buyer has expressed an interest in purchasing in the IPO (on behalf of itself or a purchase by one of its affiliates) [the lesser
of [●] Units and] [●]% of the total number of Units to be sold by IPAC in the IPO [excluding any securities sold as part
of an Upsizing or pursuant to the exercise of the Underwriters’ over-allotment option] (the “Indicated Units”);

 

 

		1	Language
in square brackets is used in one or more, but not all, of the agreements entered into with anchor investors.

		2	For
certain agreements, there is only one Seller and appropriate conforming changes were made throughout the document.

 

     

     

    

 

WHEREAS,
following the closing of the IPO (the “IPO Closing”), IPAC will seek to identify and consummate a Business Combination;

 

WHEREAS,
the Company initially purchased 7,187,500 Class B ordinary shares of IPAC, par value $0.0001 per share (the “Founder Shares”),
comprising all of IPAC’s issued and outstanding Class B ordinary shares, up to 937,500 of which were subject to forfeiture to the
extent the Underwriters do not exercise their over-allotment option in full;

 

WHEREAS,
on March 5, 2021, IPAC effected a 1.2 to 1 share recapitalization with respect to its Class B ordinary shares, as a result of which the
Company now owns 8,625,000 Founder Shares, comprising all of IPAC’s issued and outstanding Class B ordinary shares, up to 1,125,000
of which are subject to forfeiture to the extent the Underwriters do not exercise their over-allotment option in full (which amounts
shall be increased to 10,350,000 and 1,350,000, respectively, upon an Upsizing in full);

 

WHEREAS,
the Founder Shares are convertible into Class A Shares, and the holders thereof are entitled to registration rights, on the terms and
conditions described in the Registration Statement and the exhibits thereto;

 

WHEREAS,
the Company will enter into a Private Placement Warrants Purchase Agreement with IPAC pursuant to which IPAC will issue and sell to the
Company, on a private placement basis, an aggregate of 6,250,000 private placement warrants (“Private Placement Warrants”
and together with the Founder Shares, the “Risk Capital”) (or 7,150,000 Private Placement Warrants if the Underwriters’
over-allotment option is exercised in full), or up to 7,450,000 Private Placement Warrants upon an Upsizing in full (or up to 8,530,000
Private Placement Warrants if the Underwriters’ over-allotment option is exercised in full in connection with an Upsizing in full),
each exercisable to purchase one Class A Share at an exercise price of $11.50 per share, at a purchase price of $1.00 per Private Placement
Warrant, for an aggregate purchase price of $6,250,000 (or $7,150,000 if the Underwriters’ over-allotment option is exercised in
full), or up to $7,450,000 upon an Upsizing in full (or up to $8,530,000 if the Underwriters’ over-allotment option is exercised
in full upon an Upsizing in full);

 

WHEREAS,
the Private Placement Warrants are identical to the Warrants included in the Units except as described in the Registration Statement
and the exhibits thereto;

 

WHEREAS,
the Founder Shares and Private Placement Warrants are subject to restrictions on transfer as described in the Registration Statement
and the exhibits thereto;

 

WHEREAS,
pursuant to the terms of the Second Amended and Restated Limited Liability Company Operating Agreement of the Company (the “Operating
Agreement”), each Class Y Unit of the Company (the “Class Y Units”) represents the economic benefit of one
Founder Share owned by the Company or the proceeds of disposition thereof owned by the Company;

 

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WHEREAS,
each Seller wishes to sell to the Buyer, and the Buyer wishes to purchase from each Seller, that number of Class Y Units set forth opposite
such Seller’s name on the Schedule of Sellers hereto, an aggregate [●] Class Y Units (collectively, the “Purchased
Units”), subject to the terms and conditions set forth herein;

 

WHEREAS,
subject to certain exceptions, the Operating Agreement prohibits transfers of Units without the consent of the Manager, and the Manager,
on behalf of the Company, wishes to consent to the Transfer of the Purchased Units from the Sellers to the Buyer, subject to the terms
and conditions set forth herein; [and]

 

[WHEREAS,
in consideration of the Sellers structuring IPAC and the Company and facilitating the IPO, the Sellers will charge the Buyer, and the
Buyer wishes to pay each Sellers, that amount set forth opposite such Seller’s name on Exhibit A hereto, an aggregate of $______________
(the “Structuring Fee”); and]

 

WHEREAS,
capitalized terms used but not defined herein have the meanings given to them in the Operating Agreement.

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1. Purchase,
Sale and Delivery of Purchased Units; Forfeiture.

 

(a) Purchase
and Sale

 

(i) Subject
to the terms and conditions set forth herein, at the Closing (as defined in Section 1(a)(ii)), each Seller, severally,
but not jointly, shall sell, transfer and assign to the Buyer, and the Buyer shall purchase from each Seller, all of each Seller’s
right, title and interest in and to the Purchased Units set forth opposite such Seller’s name on the Schedule of Sellers (such
amount with respect to each Seller, the “Sold Units”) for the purchase price set forth opposite such Seller’s
name on the Schedule of Sellers (such amount with respect to each Seller, the “Purchase Price”).

 

(ii) Subject
to the terms and conditions contained in this Agreement, the purchase and sale of the Purchased Units contemplated hereby shall take
place at a closing (the “Closing”) to be held promptly following the execution of this Agreement[, but in any event
no earlier than two business days following notice from the Sellers of such proposed closing date] (the “Closing Date”)
at the offices of White & Case LLP, or at such other place or on such other date as the Buyer and the Sellers may mutually agree
upon in writing. At the Closing, (i) the Buyer shall pay to each Seller such Seller’s respective Purchase Price for the Sold Units
to be sold to the Buyer at the Closing set forth opposite such Seller’s name on the Schedule of Sellers, by wire transfer of immediately
available funds to an account designated by such Seller to the Buyer and (ii) each Seller shall deliver to the Buyer such Seller’s
Sold Units to be sold to the Buyer at the Closing set forth opposite such Seller’s name on the Schedule of Sellers, free and clear
of all Encumbrances (as defined herein).

 

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(iii) Unless
the Buyer otherwise agrees in writing, in the event the sale of the Class Y Units or the IPO is not consummated for any reason by ________________,
2021, this Agreement shall thereafter have no force or effect, the Sellers shall promptly return or cause to be returned to the Buyer
their respective Purchase Prices [and shares of the Structuring Fee], without interest thereon or deduction therefrom and the Buyer shall
promptly return to each Seller for no consideration such Seller’s Sold Units.

 

(b) Conditions
and Forfeiture. If the Buyer does not submit to the Underwriter(s), and maintain through the IPO Closing, a firm order to purchase
in the IPO [at least] the amount of the Indicated Units at a price of $10.00 per Unit, the Buyer shall promptly return to each Seller
such Seller’s Sold, each Seller shall promptly return or cause to be returned to the Buyer their respective Purchase Prices [and
shares of the Structuring Fee], without interest thereon or deduction therefrom, and this Agreement shall thereafter have no force or
effect. [The Sellers, the Company and the Manager acknowledge and agree that (i) if the Buyer submits to the Underwriter(s), and maintains
through the IPO Closing, a firm order to purchase in the IPO the amount of the Indicated Units at a price of $10.00 per Unit and (ii)
IPAC does not issue the amount of the Indicated Units to Buyer despite Buyer maintaining the firm order to purchase described in the
immediately preceding clause (i), then Buyer shall not be obligated to return to the Sellers any Purchased Units or forfeit any Purchased
Units.]

 

2. Manager
Consent. Subject to the terms and conditions set forth herein, the Manager, on behalf of the Company, with effect as of the Closing
Date, hereby consents to the Transfer of the Purchased Units from the Sellers to the Buyer in accordance with the terms of the Operating
Agreement.

 

3. Representations
and Warranties of Seller. Each Seller, severally and not jointly, represents and warrants to the Buyer and, except with respect to
Section 3(d)(i), the Manager and the Company, with respect to only itself that:

 

(a) Such
Seller is duly organized, validly existing, and in good standing under the laws of the jurisdiction of its formation (if the concept
of “good standing” is a recognized concept in such jurisdiction).

 

(b) Such
Seller has all requisite power and authority to execute and deliver this Agreement, to carry out its obligations hereunder, and to consummate
the transactions contemplated hereby.

 

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(c) All
action on the part of such Seller necessary for the execution and delivery of this Agreement, the performance of all obligations of such
Seller under this Agreement to be performed as of the Closing, and the sale and delivery of such Seller’s Sold Units has been taken
or will be taken prior to the Closing, as applicable.

 

(d) This
Agreement, when executed and delivered by such Seller, shall constitute the valid and legally binding obligation of the Seller, enforceable
against such Seller in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors’ rights generally,
or (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

(e) (i)
Such Seller’s Sold Units have been duly authorized, are validly issued, fully paid and non-assessable, (ii) are owned of record
and beneficially by such Seller, free and clear of all liens, pledges, security interests, charges, claims, encumbrances, agreements,
options, voting trusts, proxies and other arrangements or restrictions of any kind (“Encumbrances”), and (iii) upon
consummation of the transactions contemplated by this Agreement, the Buyer shall own such Seller’s Sold Units, free and clear of
all Encumbrances.

 

(f) The
execution, delivery and performance by such Seller of this Agreement and the consummation by such Seller of the transactions contemplated
by this Agreement will not result in any violation or default (i) of any provisions of its organizational documents, (ii) of any instrument,
judgment, order, writ or decree to which it is a party or by which it is bound, (iii) under any note, indenture or mortgage to which
it is a party or by which it is bound, (iv) under any lease, agreement, contract or purchase order to which it is a party or by which
it is bound or (v) of any provision of federal or state statute, rule or regulation applicable to such Seller, in each case (other than
clause (i)) which would have a material adverse effect on such Seller or its ability to consummate the transactions contemplated by this
Agreement.

 

(g) No
consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state
or local governmental authority is required on the part of such Seller in connection with the consummation of the transactions contemplated
by this Agreement.

 

(h) Neither
such Seller, nor to its knowledge, any person acting on its behalf, has engaged in any form of general solicitation or general advertising
(within the meaning of Regulation D under the Securities Act) in connection with the offer or sale of the Sold Units.

 

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(i) Assuming
the accuracy of the Buyer’s representations and warranties set forth herein, no registration under the Securities Act is required
for the offer and sale of the Sold Units by such Seller to the Buyer as contemplated hereby.

 

(j) There
are no actions, suits, claims, investigations or other legal proceedings pending or, to the knowledge of such Seller, threatened against
or by such Seller that challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement.

 

(k) [The
Company will have by the IPO Closing registration rights in the Founder Shares held by the Company pursuant to that certain registration
rights agreement to be entered into between the Company and IPAC which has been filed with the SEC as an exhibit to the Registration
Statement (the “Registration Rights”). The Buyer will be able to avail itself of the Registration Rights, but only
to the extent provided therein once the Purchased Units are (i) no longer subject to the lock-ups described in the Registration Statement
and (ii) distributed to the Buyer as described in the Operating Agreement, provided, however, that to the extent the Company exercises
any such Registration Rights prior to the occurrence of the events specified in clauses (i) or (ii), the Buyer will be bound by such
exercise.]

 

(l) No
broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions
contemplated by this Agreement based upon arrangements made by or on behalf of the Seller.

 

(m) [Neither
such Seller, nor, to the knowledge of such Seller, any manager, managing member, officer, agent, employee, affiliate or other person
acting on behalf of such Seller is aware of or has taken any action, directly or indirectly, that could result in a violation or a sanction
for violation by such persons of the Foreign Corrupt Practices Act of 1977 or the U.K. Bribery Act 2010, each as may be amended,
or similar law of any other relevant jurisdiction, or the rules or regulations thereunder; and such Seller has instituted and maintains
policies and procedures to ensure compliance therewith. No part of the Purchase Price will be used, directly or indirectly, in violation
of the Foreign Corrupt Practices Act of 1977 or the U.K. Bribery Act 2010, each as may be amended, or similar law of any other
relevant jurisdiction, or the rules or regulations thereunder.

 

(n) The
operations of such Seller are and have been conducted at all times in compliance with applicable financial recordkeeping and reporting
requirements and the money laundering statutes and the rules and regulations thereunder and any related or similar rules, regulations
or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”)
and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving such Seller
with respect to the Money Laundering Laws is pending or, to the best knowledge of such Seller, threatened.

 

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(o) Neither
such Seller, nor, to the knowledge of such Seller, any manager, managing member, officer, agent, employee or affiliate of such Seller
(i) is, or is controlled or 50% or more owned in the aggregate by or is acting on behalf of, one or more individuals or entities
that are currently the subject of any sanctions administered or enforced by the United States (including any administered or enforced
by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State or the Bureau
of Industry and Security of the U.S. Department of Commerce), the United Nations Security Council, the European Union, a member
state of the European Union (including sanctions administered or enforced by Her Majesty’s Treasury of the United Kingdom) or other
relevant sanctions authority (collectively, “Sanctions” and such persons, “Sanctioned Persons”
and each such person, a “Sanctioned Person”), (ii) is located, organized or resident in a country or territory
that is, or whose government is, the subject of Sanctions that broadly prohibit dealings with that country or territory (collectively,
“Sanctioned Countries” and each, a “Sanctioned Country”) or (iii) will, directly or indirectly,
use the Purchase Price, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other
individual or entity in any manner that would result in a violation of any Sanctions by, or could result in the imposition of Sanctions
against, any individual or entity. In the preceding three years, except as is not material to the analysis under any Sanctions, such
Seller has not engaged in any dealings or transactions with or for the benefit of a Sanctioned Person, or with or in a Sanctioned Country,
in the preceding three years, nor does such Seller have any plans to engage in dealings or transactions with or for the benefit
of a Sanctioned Person, or with or in a Sanctioned Country.

 

(p) None
of such Seller or, to the knowledge of such Seller, any manager, managing member or officer of such Seller has violated: (a) the Bank
Secrecy Act, as amended, (b) the Money Laundering Laws, or (c) the Uniting and Strengthening of America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, and/or the rules and regulations promulgated under any such
law, or any successor law.]

 

(q) Except
for the specific representations and warranties contained in this Section 3, such Seller has not made, does not make or
shall not be deemed to make any other express or implied representation or warranty with respect to the Company, this offer and sale,
IPAC, the proposed IPO or a potential Business Combination, and such Seller disclaims any such representation or warranty. [Such Seller
acknowledges and agrees that, except for the specific representations and warranties contained in Section 4, Buyer has
not made, does not make or shall not be deemed to make any other express or implied representation or warranty with respect to Buyer,
this transaction, this Agreement, the proposed IPO or a potential Business Combination, and such Seller and its affiliates have not relied
on and are not relying on any representation or warranty of Buyer except for those expressly set forth in Section 4 of
this Agreement.]

 

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4. Representation
and Warranties of the Buyer. The Buyer represents and warrants to each Seller, the Manager and the Company as follows:

 

(a) The
Buyer is duly organized, validly existing, and in good standing under the laws of the jurisdiction of its formation (if the concept of
“good standing” is a recognized concept in such jurisdiction) and has all requisite power and authority to carry on its business
as presently conducted and as proposed to be conducted.

 

(b) The
Buyer has full power and authority to enter into this Agreement. The execution and delivery by the Buyer of this Agreement, the performance
by the Buyer of its obligations hereunder and the consummation by the Buyer of the transactions contemplated hereby have been duly authorized
by all requisite action on the part of the Buyer.

 

(c) This
Agreement has been duly executed and delivered by the Buyer and this Agreement constitutes a legal, valid and binding obligation of the
Buyer enforceable against the Buyer in accordance with its terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance and any other laws of general application affecting enforcement of creditors’ rights generally,
or (b) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

 

(d) The
execution, delivery and performance by the Buyer of this Agreement and the consummation by the Buyer of the transactions contemplated
by this Agreement will not result in any violation or default (i) of any provisions of its organizational documents, if applicable, (ii)
of any instrument, judgment, order, writ or decree to which it is a party or by which it is bound, (iii) under any note, indenture or
mortgage to which it is a party or by which it is bound, (iv) under any lease, agreement, contract or purchase order to which it is a
party or by which it is bound or (v) of any provision of federal or state statute, rule or regulation applicable to the Buyer, in each
case (other than clause (i)), which would have a material adverse effect on the Buyer or its ability to consummate the transactions contemplated
by this Agreement.

 

(e) This
Agreement is made with the Buyer in reliance upon the Buyer’s representation to the Sellers, the Manager and the Company, which
by the Buyer’s execution of this Agreement, the Buyer hereby confirms, that the Purchased Units will be acquired for investment
for the Buyer’s own account or an account that is under the direction and control of the Buyer or one of its affiliates, not as
a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that the Buyer has no present intention
of selling, granting any participation in, or otherwise distributing the same in violation of law. By executing this Agreement, the Buyer
further represents that the Buyer does not presently have any contract, undertaking, agreement or arrangement with any person to sell,
transfer or grant participations to such person or to any third person, with respect to any of the Purchased Units. If the Buyer was
formed for the specific purpose of acquiring the Purchased Units, each of its equity owners is an accredited investor as defined in Rule
501(a) of Regulation D promulgated under the Securities Act.

 

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(f) The
Buyer has had an opportunity to discuss the Company’s and IPAC’s business, management, financial affairs and the terms and
conditions of the Class Y Units, as well as the terms and conditions of the IPO and the Founder Shares with the Company’s and IPAC’s
management. The Buyer has reviewed the Registration Statement and understands the terms and conditions of the Founder Shares.

 

(g) The
Buyer understands that the offer and sale of the Purchased Units to the Buyer has not been, and will not be, registered under the Securities
Act, by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things,
the bona fide nature of the investment intent and the accuracy of the Buyer’s representations as expressed herein. The Buyer understands
that the Purchased Units are “restricted securities” under applicable U.S. federal and state securities laws and that, pursuant
to these laws, the Buyer must hold the Purchased Units indefinitely unless they are registered with the SEC and qualified by state authorities,
or an exemption from such registration and qualification requirements is available. The Buyer acknowledges that none of the Sellers,
the Manager, or the Company has any obligation to register or qualify the Purchased Units for resale. The Buyer further acknowledges
that if an exemption from registration or qualification is available, it may be conditioned on various requirements including, but not
limited to, the time and manner of sale, the holding period for the Purchased Units, and on requirements relating to the Company which
are outside of the Buyer’s control, and which the Sellers and the Company are under no obligation and may not be able to satisfy.
The Buyer acknowledges that IPAC filed the Registration Statement for its proposed IPO with the SEC for review. The Buyer understands
that the offer and sale of the Purchased Units is not, and is not intended to be, part of the IPO, and that the Buyer will not be able
to rely on the protection of Section 11 of the Securities Act with respect to such Purchased Units.

 

(h) The
Buyer understands that no public market now exists for the Purchased Units or the securities of IPAC underlying the Purchased Units,
and that none of the Sellers, the Company or the Manager has made any assurances that a public market will ever exist for the Purchased
Units or the securities of IPAC underlying the Purchased Units.

 

(i) The
Buyer understands that its agreement to purchase the Purchased Units involves a high degree of risk which could cause the Buyer to lose
all or part of its investment, and that the Company will vote the Founder Shares in favor of the Business Combination.

 

(j) The
Buyer is an “accredited investor” as defined by Rule 501(a) of Regulation D promulgated under the Securities Act, and has
such knowledge and experience in financial and business matters that the Buyer is capable of evaluating the merits and risks of the Buyer’s
investment in the Purchased Units, of making an informed investment decision with respect thereto, and has the ability and capacity to
protect the Buyer’s interests.

 

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(k) If
the Buyer is not a United States person (as defined by Section 7701(a)(30) of the U.S. Internal Revenue Code of 1986, as amended, and
the regulations promulgated thereunder (collectively, the “Code”)), the Buyer hereby represents that it has satisfied
itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Class Y Units
or any use of this Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the Purchased Units, (ii)
any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained,
and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer
of the Purchased Units. The Buyer’s purchase and payment for and continued beneficial ownership of the Purchased Units will not
violate any applicable securities or other laws of the Buyer’s jurisdiction.

 

(l) The
Buyer acknowledges its obligations under applicable securities laws with respect to the treatment of non-public information relating
to IPAC and the Company.

 

(m) The
Buyer has, or as of the Closing will have, available to it sufficient funds to satisfy its obligations under this Agreement.

 

(n) The
Buyer is neither a person associated nor affiliated with Citigroup Global Markets Inc. or, to its actual knowledge, any other member
of the Financial Industry Regulatory Authority (“FINRA”) that is participating in the IPO.

 

(o) The
Buyer recognizes that no federal, state or foreign agency has reviewed, recommended or endorsed the purchase of the Purchased Units or
any facts or circumstances related thereto.

 

(p) The
Buyer understands that no certificates will be issued representing the Purchased Units and that the Purchased Units are not transferrable
except in accordance with the Operating Agreement of the Company, which Operating Agreement restricts the transferability of the Purchased
Units.

 

(q) Any
sales, transfers, or other dispositions of the Purchased Units by the Buyer, if any, will be made in compliance with the Securities Act
and all applicable rules and regulations promulgated thereunder.

 

(r) The
Buyer represents and warrants, to the best of the Buyer’s knowledge and solely with respect to its purchase of the Purchased Units
hereunder, that no finder, broker, agent, financial advisor or other intermediary, nor any purchaser representative or any broker-dealer
acting as a broker, is entitled to any compensation in connection with the transactions contemplated by this Agreement.

 

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(s) [Except
for the specific representations and warranties contained in this Section 4, Buyer has not made, does not make or shall not be
deemed to make any other express or implied representation or warranty with respect to Buyer, this transaction, this Agreement, the proposed
IPO or a potential Business Combination, and Buyer disclaims any such representation or warranty.]

 

5. [Representations
and Warranties of the Company. The Company represents and warrants to the Buyer as follows:

 

(a) The
Company is duly formed and validly existing as a limited liability company under the laws of the Cayman Islands.

 

(b) The
Company has the power and authority to enter into, deliver and perform this Agreement and the agreements to be entered into therewith.

 

(c) All
action on the part of the Company necessary for the execution and delivery of this Agreement, the performance of all obligations of the
Company under this Agreement to be performed as of the Closing, has been taken or will be taken prior to the Closing, as applicable.
This Agreement, when executed and delivered by the Company, shall constitute the valid and legally binding obligation of the Company,
enforceable against the Company in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors’
rights generally, or (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable
remedies.

 

(d) The
execution and delivery by the Company of this Agreement and the fulfillment of, and compliance with, the terms hereof by the Company,
do not and will not as of the Closing Date (a) conflict with or result in a breach of the terms, conditions or provisions of, (b) constitute
a default under, (c) result in the creation of any lien, security interest, charge or encumbrance upon the Company’s equity securities
or assets under, (d) result in a violation of, or (e) require any authorization, consent, approval, exemption or other action by or notice
or declaration to, or filing with, any court or administrative or governmental body or agency pursuant to the Operating Agreement, or
any material law, statute, rule or regulation to which the Company is subject, or any agreement, order, judgment or decree to which the
Company is subject, except for any filings required after the date hereof under federal or state securities laws.

 

(e) There
are 8,625,000 Class Y Units of the Company issued and outstanding. All of the outstanding Class Y Units have been duly authorized, are
fully paid and nonassessessable and were issued in compliance with all applicable federal and state securities laws.

 

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(f) No
permit, consent, approval or authorization of, or declaration to or filing with, any governmental authority is required in connection
with the execution, delivery and performance by the Company of this Agreement or the consummation by the Company of any other transactions
contemplated hereby.]

 

6. Buyer
Rights, Waivers and Covenants.

 

(a) The
Buyer shall not be entitled to any registration rights with respect to Purchased Units other than the Registration Rights as a transferee
of the Founder Shares owned by the Company. In addition, should the Buyer receive a distribution of any securities of IPAC held by the
Company, [the Buyer agrees to execute a letter agreement with IPAC in substantially the same form as that certain letter agreement to
be entered into between the Company and IPAC which has been filed with the SEC as an exhibit to the Registration Statement, if such distribution
were to occur prior to the expiration of any applicable lock-up periods contained therein (and if such distribution occurs after the
closing of the Business Combination, such letter agreement shall only provide for the applicable lock-ups)] /3 [the Buyer
agrees to execute a letter agreement with IPAC that solely provides for a lock-up period with respect to such securities that is the
same as the lock-up period applicable to such securities described in that certain letter agreement to be entered into between the Company
and IPAC which has been filed with the SEC as an exhibit to the Registration Statement, provided, that such letter agreement shall apply
solely to Founder Shares distributed to the Buyer and/or Class A shares issued upon conversion of Founders Shares. Notwithstanding anything
to the contrary herein or in the Operating Agreement and notwithstanding any distribution of securities of IPAC to any other member of
the Company, the Company shall not be required to distribute any securities of IPAC to the Buyer prior to the completion of the Business
Combination].

 

(b) The
Buyer hereby acknowledges that IPAC will establish a trust account (the “Trust Account”) containing the proceeds of
the IPO and from certain private placements occurring simultaneously with the IPO (including interest accrued from time to time thereon)
for the benefit of IPAC’s public stockholders and certain other parties (including the Underwriters of the IPO). The Buyer hereby
agrees that it does not now and shall not at any time hereafter have any right, title, interest or claim of any kind in or to any assets
held in the Trust Account, and shall not make any claim against the Trust Account, regardless of whether such claim arises as a result
of, in connection with or relating in any way to this Agreement or any other matter, and regardless of whether such claim arises based
on contract, tort, equity or any other theory of legal liability (any and all such claims are collectively referred to hereafter as the
“Released Claims”). The Buyer hereby irrevocably waives any Released Claims that it may have against the Trust Account
now or in the future as a result of, or arising out of, any negotiations, contracts or agreements with any of the Sellers, the Manager,
the Company or IPAC and will not seek recourse against the Trust Account for any reason whatsoever. [Notwithstanding the foregoing, nothing
shall prevent the Buyer from redeeming any Class A Shares it owns pursuant to the Registration Statement.]

 

 

3
Each agreement contained either one or the other of these mutually exclusive alternate provisions.

 

    12

     

    

 

(c) [In
the event that other person(s) or institution(s) participate in the Risk Capital of IPAC (any other such person or institution an “Other
Anchor”), directly or indirectly, the terms of such Other Anchor’s investment(s) shall not be more favorable than those
provided to the Buyer herein (any such more favorable terms, the “More Favorable Terms”), provided that the foregoing
shall not apply with respect to the terms received by any institution(s) affiliated with the Company or any officer or director of IPAC.
For the avoidance of doubt, a higher ratio for any Other Anchor of the right to receive Class Y Units as compared to its required IPO
indication than such ratio for the Buyer shall be considered More Favorable Terms. In the event that any such Other Anchor has More Favorable
Terms, the Company shall promptly inform the Buyer of such More Favorable Terms and the Buyer shall have the right to elect to have such
More Favorable Terms, in which case the parties hereto shall reflect such More Favorable Terms herein (including by amendment of this
Agreement, if necessary).]

 

(d) In
the event that IPAC seeks to raise additional funds for a prospective Business Combination in the form of a PIPE, the Buyer and/or its
affiliates shall have the right, but not the obligation, to invest in and subscribe for up to ___% of the aggregate PIPE proceeds on
substantially the same terms as all other investors in the PIPE.

 

(e) If
the Buyer has submitted to the Underwriter(s), and maintained through the IPO Closing a firm order to purchase in the IPO [at least]
the amount of the Indicated Units at a price of $10.00 per Unit as specified in Section 1(b), then notwithstanding anything else
to the contrary herein or in the Operating Agreement, including without limitation, Section 3.4 thereof, neither the Buyer’s Class
Y Units nor the Founder Shares underlying such Class Y Units shall be subject to forfeiture [nor share price triggers commonly known
as “earn-outs”] for any reason, including as part of negotiating a Business Combination, without the Buyer’s prior
written consent. [The Seller, the Company, the Manager and IPAC acknowledge and agree that (i) if the Buyer submits to the Underwriter(s),
and maintains through the IPO Closing, a firm order to purchase in the IPO the amount of the Indicated Units at a price of $10.00 per
Unit and (ii) IPAC does not issue the amount of the Indicated Units to Buyer despite Buyer maintaining the firm order to purchase described
in the immediately preceding clause (i), then notwithstanding anything else to the contrary herein or in the Operating Agreement, including
without limitation, Section 3.4 thereof, neither the Buyer’s Class Y Units nor the Founder Shares underlying such Class Y Units
shall be subject to forfeiture for any reason, including as part of negotiating a Business Combination, without the Buyer’s prior
written consent.]

 

(f) [In
no event shall the Sellers, IPAC, the Company, the Manager or any of their respective affiliates or representatives use the name of the
Buyer or any of its affiliates, or any other information that could reasonably be expected to enable identification of the Buyer or its
affiliates (collectively, the “Buyer Name”) in any S-1, prospectus, other disclosure document, marketing materials,
press release, tombstones or otherwise, orally or in writing, in connection with the IPO, the activities of IPAC, the business combination
or otherwise, without the prior written consent of the Buyer. If, notwithstanding the foregoing, the SEC takes the position that the
disclosure of the Buyer Name is required in connection with IPAC’s IPO or otherwise in connection with the transactions contemplated
by this Agreement,] [IPAC or the Company may make such disclosure without the Buyer's prior written consent /4 the Buyer shall
have the right to terminate this Agreement. If the Buyer elects to terminate this Agreement pursuant to this Section 6(f), the
Buyer shall promptly return to each Seller for no consideration such Seller’s Sold Units, each Seller shall promptly return or
cause to be returned to the Buyer their respective Purchase Prices, without interest thereon or deduction therefrom, and thereafter this
Agreement shall be of no further force and effect.]

 

 

		4	Each agreement contained either one or other of these mutually
exclusive alternate provisions.

 

    13

     

    

 

(g) [Not
less than 10 (and not more than 15) days prior to making any distribution of any IPAC securities (including any securities exchangeable
for or convertible into such securities) to the Buyer on account of the Class Y Units, the Company shall provide to the Buyer written
notice of the number and type of securities to be distributed and the proposed date of distribution; provided that, in the event that
the Company shall make an irrevocable commitment to distribute any such IPAC securities to Buyer, such advance notice period shall be
not less than 70 (and not more than 90) days prior to any distribution date. The Buyer acknowledges that this Section 6(g) shall
not prevent or delay the Company’s distribution of IPAC securities to any other member of the Company.]

 

(h) [Other
than with the Buyer’s prior written consent, in no event will IPAC, the executive management team of IPAC or the Company consult
with or otherwise discuss any potential Business Combination with the Buyer, or otherwise provide the Buyer with confidential information
regarding IPAC or any potential Business Combination. The Buyer, the Sellers and the Company acknowledge and agree that, except to the
extent the Buyer has consented to the provision of confidential information to it pursuant to the immediately preceding sentence, subject
to the Buyer’s obligations under applicable securities laws with respect to the treatment of non-public information relating to
IPAC and the Company, the Buyer will not be subject to any restriction or limitation on its ability to transfer, acquire or dispose of
any equity securities of IPAC held by it.]

 

(i) [For
the avoidance of doubt, paragraphs (a), (b) and (d) of this Section 6 are agreements solely between IPAC
and the Buyer.]

 

(j) [The
Company hereby grants the Buyer a right of first refusal, exercisable at the Buyer’s sole discretion, to participate in three future
SPAC offerings sponsored by any entity in which the Manager, Mike Blitzer, Guy Shanon and/or Paula Sutter (or any of their respective
affiliated entities) is a member, sponsor, partner, or equity holder (provided, however, that such person or affiliated entity is acting
in the capacity as a managing member or in a similar capacity with respect to such entity) (a “future SPAC IPO”) on
substantially the same risk capital economic terms as set forth herein, or on such other terms mutually agreed upon between the Company
and the Buyer, provided that such right of first refusal shall not apply if the Buyer does not indicate an interest to purchase an amount
of units in such future SPAC IPO with an aggregate dollar value equal to or greater than the aggregate dollar value of the Indicated
Units, provided further, however, that the Buyer’s indication does not exceed 9.9% of the total size of such future SPAC IPO.]

 

    14

     

    

 

(k) [If,
in connection with an Upsizing, the Buyer has submitted to the Underwriter(s), and maintained through the IPO Closing, a firm order to
purchase in the IPO at least the amount of the Units equal to___% of the total Units offered in the IPO after giving effect to any such
Upsizing, the Buyer will have the right to purchase from Kingfishers, L.P., and should the Buyer exercise such right to purchase, Kingfishers,
L.P. shall sell to the Buyer, a number of additional Class Y Units equal to the product of (1) the quotient of (i) __________ and (ii)
8,625,000 multiplied by (2) the number of additional Founder Shares issued to the Sponsor in connection with the Upsizing, at
the same price per Unit as the Purchased Units.]

 

7. Survival.
All representations and warranties contained herein shall survive the execution and delivery of this Agreement and the Closing hereunder.

 

8. Further
Assurances. Following the Closing, each of the parties hereto shall execute and deliver such additional documents, instruments, conveyances
and assurances, and take such further actions as may be reasonably required to carry out the provisions hereof and give effect to the
transactions contemplated by this Agreement.

 

9. Termination.
This Agreement may be terminated at any time prior to the Closing (a) by the mutual written consent of the Buyer, the Sellers and the
Manager or (b) by either the Buyer or the Sellers if a breach of any provision of this Agreement has been committed by the other and
such breach has not been cured within 30 days following receipt by the breaching party and the Manager of written notice of such breach.
Upon termination, all further obligations of the parties under this Agreement shall terminate without liability of any party to the other
parties to this Agreement, except that no such termination shall relieve any party from liability for any fraud or willful breach of
this Agreement.

 

10. [Structuring
Fee. At Closing, in consideration of the Sellers structuring IPAC and the Company and facilitating the IPO, the Buyer shall pay to
each Seller a structuring fee equal to that amount set forth opposite such Seller’s name on Exhibit A hereto, by wire transfer
of immediately available funds to an account designated in writing by Seller to Buyer.]

 

    15

     

    

 

11. Tax
Matters.

 

(a) All
payments by the Buyer pursuant to this Agreement shall be made without withholding or deduction for or on account of any taxes, duties,
assessments or other governmental charges unless such withholding or deduction is required by applicable tax law. [If the Buyer determines
that an amount is required to be deducted or withheld under applicable tax law, the Buyer shall provide at least five (5) business days’
notice of the Buyer’s determination to the applicable Seller prior to such deduction or withholding (and the notice shall include
the legal authority and the calculation method for the expected deduction or withholding).] To the extent that any such amounts are so
deducted or withheld and [timely] paid to the relevant tax authority, such amounts will be treated for all purposes of this Agreement
as having been paid to the applicable Seller in respect of which such deduction and withholding was made. The Buyer acknowledges and
agrees that no withholding is required under applicable U.S. federal income tax law provided that such Seller provides a properly completed
and duly executed IRS Form W-9 confirming that such Seller is a United States person that is not subject to backup withholding. [The
parties hereto shall use reasonable efforts to cooperate to minimize the amount of the deduction or withholding.]

 

(b) [The
Sellers agree to furnish Buyer with properly executed and duly completed IRS Form W-9s at Closing.]

 

12. Expenses.
Each of the Buyer, the Sellers, the Manager and the Company will bear its own costs and expenses incurred in connection with the preparation,
execution and performance of this Agreement and the consummation of the transactions contemplated hereby, including all fees and expenses
of agents, representatives, financial advisors, legal counsel and accountants.

 

13. Notices.
Any notice or other document required or permitted to be given or delivered to the parties hereto shall be in writing and sent: (i) by
e-mail, or (ii) by registered or certified mail with return receipt requested (postage prepaid) or (iii) by a recognized overnight delivery
service (with charges prepaid).

 

If
to the Company or the Manager, at:

 

Inflection
Point Holdings LLC

34 East 51st Street, 5th Floor

New York, New York 10022

Attention: Michael Blitzer

E-mail: ops@kingstowncapital.com

 

With
a copy which shall not constitute notice to:

 

White
& Case LLP

1221 Avenue of the Americas

New York, New York 10020

Attention: Joel L. Rubinstein

E-mail: joel.rubinstein@whitecase.com

 

    16

     

    

 

If
to the Buyer or the Seller, at the address set forth on the first page of this Agreement, or such other address as such shall have specified
to the other parties in writing.

 

14. Entire
Agreement. This Agreement, together with any documents, instruments and writings that are delivered pursuant hereto or referenced
herein, constitutes the entire agreement and understanding of the parties hereto in respect of its subject matter and supersedes all
prior understandings, agreements, or representations by or among the parties hereto, written or oral, to the extent they relate in any
way to the subject matter hereof or the transactions contemplated hereby.

 

15. Successors.
All of the terms, agreements, covenants, representations, warranties, and conditions of this Agreement are binding upon, and inure to
the benefit of and are enforceable by, the parties hereto and their respective successors. Nothing in this Agreement, express or implied,
is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations
or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement, provided, however, that the Company
is a third party beneficiary of this Agreement with respect to Sections 3, 4, 6, 7 and 12 through
26.

 

16. Assignments.
Except as otherwise specifically provided herein, no party hereto may assign either this Agreement or any of its rights, interests, or
obligations hereunder without the prior written approval of the other parties[; provided, however, that the Buyer may assign this Agreement
or any of its rights, interests or obligations hereunder to any of its affiliates at any time without the prior written approval of any
other party hereto.]

 

17. Amendment
and Modification; Waiver. This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each
party hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed
by the party so waiving. Except as otherwise set forth in this Agreement, no failure to exercise, or delay in exercising, any rights,
remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial
exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege.

 

18. Severability.
The provisions of this Agreement will be deemed severable and the invalidity or unenforceability of any provision will not affect the
validity or enforceability of the other provisions hereof; provided that if any provision of this Agreement, as applied to any party
hereto or to any circumstance, is adjudged by a governmental authority, arbitrator, or mediator not to be enforceable in accordance with
its terms, the parties hereto agree that the governmental authority, arbitrator, or mediator making such determination will have the
power to modify the provision in a manner consistent with its objectives such that it is enforceable, and/or to delete specific words
or phrases, and in its reduced form, such provision will then be enforceable and will be enforced.

 

    17

     

    

 

19. Law
Governing this Agreement. This Agreement shall be enforced, governed and construed in all respects in accordance with the laws of
the State of New York, as such laws are applied by the New York courts within the borders of such state, except with respect to the conflicts
of law provisions thereof.

 

20. Jurisdiction.
The parties (i) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of New York and to the
jurisdiction of the United States District Court for the Southern District of New York for the purpose of any suit, action or other
proceeding arising out of or based upon this Agreement [(ii) agree not to commence any suit, action or other proceeding arising out
of or based upon this Agreement except in state courts of New York or the United States District Court for the Southern District of
New York, and (iii)] [and (ii)] hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such
suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its
property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum,
that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced
in or by such court.

 

21. Waiver
of Jury Trial. The parties hereto hereby waive any right to a jury trial in connection with any litigation pursuant to this Agreement
and the transactions contemplated hereby.

 

22. Headings;
Certain Definitions. The headings of the various sections and paragraphs of this Agreement have been inserted only for the purposes
of convenience; such captions are not a part of this Agreement and shall not be deemed in any manner to modify, explain, enlarge or restrict
any of the provisions of this Agreement. As used in this Agreement the term “person” shall mean and include an individual,
a partnership, a joint venture, a corporation, a limited liability company, a trust, an unincorporated organization or any other legal
entity and a government or any department or agency thereof.

 

23. Counsel.
The Buyer, each Seller and the Manager acknowledge that they have been advised or have had the opportunity to consult with their own
attorney, accountant, financial advisor and any other advisors regarding this Agreement and investment in the Company and the Buyer,
each Seller and the Manager have each done so to the extent that they respectively deem appropriate.

 

24. Waiver.
No waiver by any party hereto of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or
not, may be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect
in any way any rights arising because of any prior or subsequent occurrence.

 

25. Confidentiality.
Except [if a party hereto determines, in good faith, that disclosure of Confidential Information shall be] required by law, regulation
or applicable stock exchange listing requirements (including, but not limited to, as required in IPAC’s Registration Statement
pursuant to Form S-1 requirements and to clear comments from the SEC’s staff) [provided that such authorized disclosures shall
not include the amount of Class Y Units, underlying Founder Shares, the Purchase Price paid by the Buyer therefore or the Structuring
Fee] [or if a party discloses Confidential Information in connection with (or in the course of) of any examinations, inspections or regulatory
audits that are conducted by any governmental authorities, unless and until the transactions contemplated hereby and the terms hereof
are publicly announced or otherwise publicly disclosed by the Company,] the parties hereto shall keep confidential and shall not publicly
disclose the existence or terms of this Agreement [(such information, the “Confidential Information”)] except to IPAC
and its and their respective legal advisors[; provided, however that Buyer may disclose the Confidential Information to:
(i) lenders and prospective lenders of Buyer or its affiliates and (ii) its and its affiliates, directors, officers (including its Chief
Compliance Officer or a similar party), partners, employees, attorneys, accountants and advisors, provided, in each case that the Buyer
shall use commercially reasonable efforts to direct such persons to keep the Confidential Information confidential and not publicly disclose
the existence or terms of this Agreement.]

 

26. Counterparts[;
Execution]. This Agreement may be executed in two or more counterparts, each of which will be deemed an original but all of which
together will constitute one and the same instrument. [This Agreement may be executed by an investment
manager on behalf of managed funds and/or accounts and for the elimination of doubt, such fund or account shall, severally and not jointly,
be the Buyer hereunder, provided, however, that each such managed fund’s or account’s rights hereunder as the Buyer shall
be reduced in proportion to the fraction of the Purchased Units being purchased by such managed fund or account, such that, in the aggregate,
the several managed funds and/or accounts receive no more rights hereunder than would be received by the Buyer if it were a single entity.]

 

[SIGNATURE
PAGE FOLLOWS]

 

    18

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first written above.

 

	 

    
	[_____]
	 	 	
	 	By	              
	 	Name:	 
	 	Title:	 
	 	 	 
	 	KINGFISHERS L.P.
	 	 
	 	By	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Solely for Purposes of Section 6 hereof:
	 	 
	 	INFLECTION POINT ACQUISITION CORP.
	 	 
	 	By	 
	 	Name:	 
	 	Title:	 

 

[Signature Page to Unit Purchase [and Structuring]
Agreement]

 

     

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first written above.

 

	COMPANY	 
	 	 
	INFLECTION
    POINT HOLDINGS LLC	 
	 	 
	By: 	Kingstown Capital Management, LP, its manager,	 
	By:	 Kingstown Management GP LLC, its general partner	 
	 	 
		 
	Name: 	Michael Blitzer	 
	Title:	 Managing Member	 
	 	 	 
	MANAGER:	 
	 	 
	KINGSTOWN
    CAPITAL MANAGEMENT, LP	 
	 	 
	By: 	Kingstown Management GP LLC, its general partner	 
	 	 	 
	 	 
	Name: 	 Michael Blitzer	 
	Title: 	Managing Member	 

 

[Signature Page to Unit Purchase [and Structuring]
Agreement]

 

     

     

    

 

SCHEDULE
OF SELLERS

 

	Seller	Class
    Y Units to be Sold	Purchase
    Price
	 	 	 
	 	 	 

 

[Schedule of Sellers to Unit Purchase [and Structuring]
Agreement]

 

     

     

    

 

EXHIBIT
A

 

	 	Structuring
    Fee
	 	 
	 	 

 

[Schedule of Sellers to Unit Purchase [and Structuring]
Agreement]Document

EXHIBIT 4(c)

			
	

SOUTHWESTERN ELECTRIC POWER COMPANY

and

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

___________________

____________ SUPPLEMENTAL INDENTURE

Dated as of ________, _______

Supplemental to the Indenture
dated as of February 25, 2000

___% Senior Notes, Series _, due 20__

			
	

___________ SUPPLEMENTAL INDENTURE, dated as of _________, _______, 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., as successor to THE BANK OF NEW YORK, a New York banking corporation organized and existing under the laws of the State of New York, 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 Section 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 $_______ to be designated the "___% Senior Notes, Series _, due 20__" (the "Series __ Notes"), and all action on the part of the Company necessary to authorize the issuance of the Series __ Notes under the Original Indenture and this _________ Supplemental Indenture has been duly taken.

All acts and things necessary to make the Series ___ Notes, when executed by the Company and completed, authenticated and delivered by the Trustee as provided in the Original Indenture and this _________ 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 __________ SUPPLEMENTAL INDENTURE WITNESSETH:

That in consideration of the premises and of the acceptance and purchase of the Series __ 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 __ Notes, as follows:

1

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 ___ Note attached hereto as Exhibit A.

ARTICLE TWO
Terms and Issuance of the Series __ Notes

SECTION 201.    Issue of Series ___ Notes.

A series of Senior Notes which shall be designated the "____%  Senior Notes, Series __, due 20__" 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 _______ Supplemental Indenture (including the form of Series __ Note set forth in Exhibit A hereto).  The aggregate principal amount of the Series __ Notes which may be authenticated and delivered under this _________ Supplemental Indenture shall initially be $______, and such principal amount of the Series __ Notes may be increased from time to time.  All Series __ 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 ___ Notes.  Any such additional Series __ Notes will have the same interest rate, maturity and other terms as those initially issued.

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

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

SECTION 203.    Depositary for Global Securities.

The Depositary for any Global Securities of the series of which this Series __ 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 __ Notes.

So long as any of the Series __ 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 (collectively "Liens") on any of its utility properties or tangible assets now owned or hereafter 
2

acquired to secure any indebtedness for borrowed money ("Secured Debt"), without providing that the Series __ 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 __ 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 101 Barclay Street, New York, NY 10286, Attention: Corporate Trust Administration.

3

SECTION 206.  Optional Redemption.

The Series __ 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.  The Series __ Notes may be redeemed 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 __ Notes being redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Series __ Notes being redeemed (excluding the portion of any such interest accrued to 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 50 basis points; plus, in each case, accrued interest thereon to the date of redemption.

"Business Day" means any day that is not a day on which banking institutions in New York City are authorized or required by law or regulation to close.

“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 __ 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 __ 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 such Reference Treasury Dealer Quotations, or (2) if the Company obtains fewer than four 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 reasonably acceptable to the Trustee.

“Reference Treasury Dealer” means BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, and J. P. Morgan Securities Inc. and their respective successors; provided, however, that if any of the foregoing shall cease to be a Reference Treasury Dealer the Company will substitute therefor a primary U.S. government securities dealer reasonably acceptable 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 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 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 (i) the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption “Treasury Constant 
4

Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the remaining life (as defined above), yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined and the Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month); or (ii) if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, 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.

SECTION 207.  Sinking Funds.

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

SECTION 208.  Regular Record Date.

The "Regular Record Date" will be the January 1 or July 1, 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 ______ Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Original Indenture and, as provided in the Original Indenture, this __________ Supplemental Indenture forms a part thereof.

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 ________ 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.

5

SECTION 304.    Successors and Assigns.

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

SECTION 305.    Separability Clause.

In case any provision in this _________ Supplemental Indenture or in the Series __ 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 Supplemental Indenture.

Nothing in this _______ Supplemental Indenture or in the Series __ Notes, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder and the Holders, any benefit or any legal or equitable right, remedy or claim under this ________ Supplemental Indenture.

SECTION 307.    Execution and Counterparts.

This _________ 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.

6

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

SOUTHWESTERN ELECTRIC POWER COMPANY

By _____________________            
Name:    
Title:    Assistant Treasurer

Attest:

_______________________                
Name:    
Title:    Assistant Secretary 

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

By_____________________                
Authorized Signatory    

Attest:

____________________________
Authorized Signatory    

7

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
______% Senior Notes, Series __, due 20___
															
	CUSIP No. ______				$___,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 _____________ on _______, 20__ (the “Final Maturity”), and to pay interest thereon from _______, 20__ or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on January 15 and July 15 each year, commencing _________, 20__, 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 January 1 or July 1 (whether or not a Business Day) immediately preceding the Interest Payment Date.  Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such 
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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 and its successor, a New York banking corporation, 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 $___,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 Register for such Series at the option of the Company, in whole or in part, from time to time at a Redemption Price equal to the greater of (i) 100% of the principal amount of the Securities being 
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redeemed and (ii) 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 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 50 basis points, plus, in each case, accrued interest thereon to the date of redemption.
“Treasury Rate” means:

•the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the remaining life (as defined above), yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined and the Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month); or

•if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, 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.

“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 Security 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 Security.

“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 such Reference Treasury Dealer Quotations, or (2) if the Company obtains fewer than four 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 reasonably acceptable to the Trustee.

A-3

“Reference Treasury Dealer” means BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, and J. P. Morgan Securities Inc. and their respective successors; provided, however, that if any of the foregoing shall cease to be a Reference Treasury Dealer the Company will substitute therefor a primary U.S. government securities dealer reasonably acceptable 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 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 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.

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 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.

A-4

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.

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 $2,000 and any integral multiple of $1,000.  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 a different 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.  
A-5

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.

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.

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 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. 

A-6

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 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:	
			Assistant Treasurer

This is one of the Securities of the series designated herein and referred to in the within-mentioned Indenture.

									
	Dated:  __________	THE BANK OF NEW YORK MELLON
			
			
		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-8

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