Document:

Exhibit 10.3

 

EXECUTION VERSION

 

GUARANTEE AND COLLATERAL AGREEMENT

 

made by

 

MICRON TECHNOLOGY, INC.

 

and certain of its Subsidiaries

 

in favor of

 

MORGAN STANLEY SENIOR FUNDING, INC.,

 

as Collateral Agent

 

Dated as of April 26, 2016

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
SECTION 1.
    	
Defined Terms
    	
1
    
	
 
    	
 
    	
 
    
	
1.1
    	
Definitions
    	
1
    
	
1.2
    	
Other Definitional   Provisions
    	
7
    
	
 
    	
 
    	
 
    
	
SECTION 2.
    	
Guarantee
    	
7
    
	
 
    	
 
    	
 
    
	
2.1
    	
Guarantee
    	
7
    
	
2.2
    	
Right of Contribution
    	
8
    
	
2.3
    	
No Subrogation
    	
8
    
	
2.4
    	
Amendments, etc with   respect to the Guaranteed Obligations
    	
9
    
	
2.5
    	
Guarantee Absolute and   Unconditional
    	
9
    
	
2.6
    	
Reinstatement
    	
10
    
	
2.7
    	
Payments
    	
10
    
	
 
    	
 
    	
 
    
	
SECTION 3.
    	
Grant of Security   Interest
    	
10
    
	
 
    	
 
    	
 
    
	
SECTION 4.
    	
Representations and   Warranties
    	
11
    
	
 
    	
 
    	
 
    
	
4.1
    	
Title; No Other Liens
    	
11
    
	
4.2
    	
Perfected First   Priority Liens
    	
11
    
	
4.3
    	
Jurisdiction of   Organization; Chief Executive Office
    	
12
    
	
4.4
    	
Investment Property
    	
12
    
	
4.5
    	
Intellectual Property
    	
12
    
	
 
    	
 
    	
 
    
	
SECTION 5.
    	
Covenants
    	
13
    
	
 
    	
 
    	
 
    
	
5.1
    	
Maintenance of   Perfected Security Interest; Further Documentation
    	
13
    
	
5.2
    	
Changes in   Name, etc.
    	
14
    
	
5.3
    	
Intellectual Property
    	
14
    
	
5.4
    	
Delivery of Pledged   Notes
    	
16
    
	
5.5
    	
Investment Property
    	
16
    
	
 
    	
 
    	
 
    
	
SECTION 6.
    	
Remedial Provisions
    	
16
    
	
 
    	
 
    	
 
    
	
6.1
    	
Certain Matters   Relating to Receivables
    	
16
    
	
6.2
    	
Communications with   Obligors; Grantors Remain Liable
    	
17
    
	
6.3
    	
Investment Property and   Instruments
    	
17
    
	
6.4
    	
Proceeds to be Turned   Over to Collateral Agent
    	
18
    
	
6.5
    	
Application of Proceeds
    	
18
    
	
6.6
    	
Code and Other Remedies
    	
19
    
	
6.7
    	
Registration Rights
    	
20
    
	
6.8
    	
Subordination
    	
20
    
	
6.9
    	
Deficiency
    	
21
    
	
6.10
    	
Pari Passu   Intercreditor Agreement
    	
21
    

 

i

 

TABLE OF CONTENTS
 (Continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
SECTION 7.
    	
The Collateral Agent
    	
21
    
	
 
    	
 
    	
 
    
	
7.1
    	
Collateral Agent’s   Appointment as Attorney-in-Fact, etc.
    	
21
    
	
7.2
    	
Duty of Collateral   Agent
    	
23
    
	
7.3
    	
Financing Statements
    	
23
    
	
7.4
    	
Authority of Collateral   Agent
    	
23
    
	
7.5
    	
Pari Passu   Intercreditor Agreement
    	
23
    
	
 
    	
 
    	
 
    
	
SECTION 8.
    	
Miscellaneous
    	
24
    
	
 
    	
 
    	
 
    
	
8.1
    	
Amendments in Writing
    	
24
    
	
8.2
    	
Notices
    	
24
    
	
8.3
    	
No Waiver by Course of   Conduct; Cumulative Remedies
    	
24
    
	
8.4
    	
Enforcement Expenses;   Indemnification
    	
24
    
	
8.5
    	
Successors and Assigns
    	
25
    
	
8.6
    	
Set-Off; Limitation on   Individual Actions
    	
25
    
	
8.7
    	
Counterparts
    	
25
    
	
8.8
    	
Severability
    	
25
    
	
8.9
    	
Section Headings
    	
26
    
	
8.10
    	
Integration
    	
26
    
	
8.11
    	
GOVERNING LAW
    	
26
    
	
8.12
    	
Submission To   Jurisdiction; Waivers
    	
26
    
	
8.13
    	
Acknowledgements
    	
26
    
	
8.14
    	
Additional Grantors;   Release of Guarantors; Releases of Collateral
    	
27
    
	
8.15
    	
WAIVER OF JURY TRIAL
    	
28
    

 

	
ANNEXES
    	
 
    	
 
    
	
Annex   I
    	
—
    	
Name   of Guarantors
    
	
Annex   II
    	
—
    	
Assumption   Agreement
    
	
 
    	
 
    	
 
    
	
EXHIBITS
    	
 
    	
 
    
	
Exhibit A
    	
—
    	
Copyright   Security Agreement
    
	
Exhibit B
    	
—
    	
Patent   Security Agreement
    
	
Exhibit C
    	
—
    	
Trademark   Security Agreement
    
	
 
    	
 
    	
 
    
	
SCHEDULES
    	
 
    	
 
    
	
Schedule 1
    	
—
    	
Notice   Address
    
	
Schedule   2
    	
—
    	
Investment   Property
    
	
Schedule   3
    	
—
    	
Perfection   Matters
    
	
Schedule   4
    	
—
    	
Jurisdiction   of Organizational and Chief Executive Offices
    

 

ii

 

TABLE OF CONTENTS
 (Continued)

 

	
 
    	
 
    	
Page
    

 

	
Schedule   5
    	
—
    	
Intellectual   Property
    

 

iii

 

GUARANTEE AND COLLATERAL AGREEMENT

 

GUARANTEE AND COLLATERAL AGREEMENT, dated as of April 26, 2016, made by MICRON TECHNOLOGY, INC. (the “Borrower”) and each of the signatories from time to time hereto (the “Guarantors”), in favor of MORGAN STANLEY SENIOR FUNDING, INC., as Collateral Agent (in such capacity, the “Collateral Agent”) for the banks and other financial institutions or entities (the “Lenders”) from time to time party to the Credit Agreement, dated as of April 26, 2016 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Borrower, the Lenders, and Morgan Stanley Senior Funding, Inc., as the administrative agent (in such capacity, the “Administrative Agent”) and Collateral Agent.

 

W I T N E S S E T H :

 

WHEREAS, pursuant to the Credit Agreement, the Lenders have severally agreed to make extensions of credit to the Borrower upon the terms and subject to the conditions set forth therein;

 

WHEREAS, the Borrower and the other Grantors are engaged in related businesses, and each Grantor will derive substantial direct and indirect benefit from the making of the extensions of credit under the Credit Agreement;

 

WHEREAS, the Grantors would also like to induce other creditors to make available from time to time First Lien Debt (other than as described above) subject to the terms of the Pari Passu Intercreditor Agreement;

 

WHEREAS, each of the Guarantors has agreed to guaranty the Obligations and to secure its respective Obligations by granting to the Collateral Agent, for the benefit of the Secured Parties, a first-priority security interest in the Collateral described herein; and

 

WHEREAS, it is a condition precedent to the obligation of the Lenders to make their respective extensions of credit to the Borrower under the Credit Agreement that the Grantors shall have executed and delivered this Agreement to the Collateral Agent for the ratable benefit of the Secured Parties.

 

NOW, THEREFORE, in consideration of the premises and to induce the Collateral Agent and the Lenders to enter into and make their respective extensions of credit to the Borrower under the Credit Agreement, each Grantor hereby agrees with the Collateral Agent, for the ratable benefit of the Secured Parties, as follows:

 

SECTION 1.                            Defined Terms

 

1.1                                 Definitions.  (a)  Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement, and the following terms are used herein as defined in the New York UCC:  Accounts (as defined in Article 9 of the New York UCC), Certificated Security, Chattel Paper, Commercial Tort Claims, Documents, Equipment, Fixture,

 

 

General Intangibles, Goods, Instruments, Inventory, Letter-of-Credit Rights and Supporting Obligations.

 

(b)                                 The following terms shall have the following meanings:

 

“After-Acquired Material Intellectual Property”: as defined in Section 5.3(c).

 

“Agreement”: this Guarantee and Collateral Agreement, as the same may be amended, supplemented or otherwise modified from time to time.

 

“Borrower Obligations”:  the collective reference to the unpaid principal of and interest on the Term Loans and all other obligations and liabilities of the Borrower (including, without limitation, interest accruing at the then applicable rate provided in the Credit Agreement after the maturity of the respective Term Loans and interest accruing at the then applicable rate provided in the Credit Agreement after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) to the Administrative Agent, the Collateral Agent or any Lender, whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with, the Credit Agreement, this Agreement, the other Loan Documents, or any other document made, delivered or given in connection with any of the foregoing, in each case whether on account of principal, interest, premiums (if any), reimbursement obligations, fees, indemnities, costs, expenses or otherwise (including, without limitation, all fees and disbursements of counsel to the Collateral Agent or to the Lenders that are required to be paid by the Borrower pursuant to the terms of any of the foregoing agreements).

 

“Capital Lease Obligations”: the obligations of any Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such person under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

 

“CFC”: a controlled foreign corporation within the meaning of Section 957 of the Code.

 

“Closing Date”:  April 26, 2016.

 

“Collateral”: as defined in Section 3.

 

“Collateral Account”: any collateral account established by the Collateral Agent as provided in Section 6.1 or Section 6.4.

 

“Copyrights”:  (i) all copyrights, database rights, design rights, mask works and works of authorship arising under the laws of the United States, any other country or any political subdivision thereof, whether registered or unregistered and whether published or unpublished (including, without limitation, those listed in Schedule 5), all registrations and recordings thereof, and all applications in connection therewith, including, without limitation, all registrations, recordings and applications in the United States Copyright Office, and (ii) the right to obtain all renewals thereof.

 

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“Copyright Licenses”:  any written agreement naming any Grantor as a party, granting any right under any Copyright, including, without limitation, the grant of rights to reproduce, prepare derivative works based upon, perform, display, manufacture, distribute, exploit and sell materials derived from any Copyright.

 

“Copyright Security Agreement”: as defined in Section 5.3(b).

 

“Credit Agreement”: as defined in the preamble hereto.

 

“Default”: any “Default” under and as defined in this Agreement or the Credit Agreement.

 

“Deposit Account”: as defined in the Uniform Commercial Code of any applicable jurisdiction and, in any event, including, without limitation, any demand, time, savings, passbook or like account maintained with a depositary institution.

 

“Excluded Property”:  with respect to any Grantor, (i) Foreign Subsidiary Voting Stock constituting more than 65% of the total voting power of all outstanding Capital Stock of such subsidiary (including for this purpose any voting debt security or other voting instrument that is treated as equity for U.S. federal income tax purposes); (ii) any Equity Interests of an Excluded Property Subsidiary, or joint ventures and non-wholly owned Subsidiaries which cannot be pledged without the consent of third parties, (iii) any fee-owned real property (other than the Mortgaged Property), Fixtures (other than Fixtures on or to Mortgaged Property) or leasehold interest in real property, (iv) all vehicles and other assets covered by a certificate of title, (v) property subject to a purchase money arrangement or Capital Lease Obligation only to the extent and for so long as the contract or other agreement in which such Lien is granted prohibits the creation of any other Lien securing Indebtedness on such property, (vi) any governmental licenses or state or local franchises, charters and authorizations, to the extent security interests in such licenses, franchises, charters or authorizations are prohibited or restricted thereby only for so long as the applicable license, franchise, charter or authorization prohibits or restricts the creation by such Grantor of a security interest in such license, franchise, charter or authorization, (vii) any lease, license, contract or agreement to which any Grantor is a party or any of its rights or interests thereunder if and for so long as the grant of such security interest shall constitute or result in (A) the abandonment, invalidation, voiding or unenforceability of any right, title or interest of any Grantor therein or (B) a breach or termination pursuant to the terms of, or a default under, any such lease, license, contract or agreement (other than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the Uniform Commercial Code (or any successor provision or provisions) of any relevant jurisdiction or any other applicable Requirement of Law or principles of equity), provided, however, that such security interest shall attach immediately and automatically at such time as the condition causing such abandonment, invalidation, voiding or unenforceability shall be remedied and, to the extent severable, shall attach immediately to any portion of such lease, license, contract or agreement that does not result in any of the consequences specified in (A) or (B) including any Proceeds of such lease, license, contract or agreement, (viii) any property of a Grantor to the extent and for so long as the grant of a security interest pursuant to this Agreement in such Grantor’s right, title or interest therein is prohibited by applicable Requirement of Law (including any requirement to obtain the consent of any Governmental Authority or third party); provided, that the foregoing exclusions in this clause (vii) shall in no way be construed to apply to the extent that

 

3

 

the prohibition is unenforceable under Sections 9-406, 9-407, 9-408 or 9-409 of the Uniform Commercial Code (or any successor provision or provisions) of any relevant jurisdiction or any other applicable Requirement of Law or principles of equity; provided, further, that such security interest shall attach immediately and automatically without further action when such prohibition is repealed, rescinded or otherwise ceases to be effective, (ix) all Commercial Tort Claims and any Letter-of-Credit Rights (whether or not the letter of credit is evidenced by a writing), (x) Deposit Accounts (other than the Collateral Accounts), (xi) any intent-to-use application for registration of a Trademark prior to the filing of a Statement of Use or an Amendment to Allege Use, solely to the extent, and for so long as, the grant or creation by any Grantor of a security interest therein would impair the registrability thereof, or the validity or enforceability of any registration issuing therefrom, (xii) any assets to the extent a security interest in such assets could result in material adverse tax consequences to Borrower or any of its Subsidiaries as reasonably determined by the Borrower in consultation with the Collateral Agent, and (xiii) any other asset or property with respect to which the Borrower and the Collateral Agent determine that the costs of obtaining a security interest therein are excessive in relation to the value of the security afforded thereby.

 

“Event of Default”:  any “Event of Default” under, and as defined in, the Credit Agreement.

 

“Excluded Property Subsidiary”: (a) each Subsidiary of the Borrower that is not a Restricted Subsidiary, (b) each Immaterial Subsidiary and (c) any not-for-profit Subsidiaries, captive insurance companies or other special purpose subsidiaries designated by Borrower from time to time.

 

“First Lien Documents”: as defined in the Pari Passu Intercreditor Agreement.

 

“Foreign Subsidiary”: any Subsidiary organized under the laws of any jurisdiction outside the United States of America.

 

“Foreign Subsidiary Voting Stock”: the voting Capital Stock of any Foreign Subsidiary or any FSHCO.

 

“Guaranteed Obligations”: in (i) the case of the Borrower, all Other Loan Party Obligations of each Non-Borrower Guarantor and (ii) the case of any Non-Borrower Guarantor, all Borrower Obligations and all Other Loan Party Obligations of each other Guarantor.

 

“Guarantors”: as defined in the preamble hereto.

 

“Grantors”: the collective reference to the Borrower and each Guarantor identified as a Grantor on Annex I to the signature page hereto, together with any other entity that may become a party hereto (and is identified as a Grantor) as provided herein.

 

“Immaterial Subsidiary”: a Subsidiary that is not a Material Subsidiary.

 

“Intellectual Property”: the collective reference to all rights, priorities and privileges relating to intellectual property, whether arising under United States, multinational or foreign laws or otherwise, including, without limitation, the Copyrights, the Copyright Licenses, the Patents, the Patent Licenses, the Trademarks and the Trademark Licenses, trade secrets, and any transferable

 

4

 

rights to sue at law or in equity for any infringement or other impairment thereof, including the right to receive all proceeds and damages therefrom.

 

“Intellectual Property Security Agreements”: as defined in Section 5.3(b).

 

“Investment Property”: the collective reference to all “investment property” as such term is defined in Section 9-102(a)(49) of the New York UCC (other than any Foreign Subsidiary Voting Stock excluded from the definition of “Pledged Stock”).

 

“IP Agreements”: all agreements, permits, consents, orders and franchises relating to the license (including, without limitation, the Copyright Licenses, Patent Licenses and Trademark Licenses), development, use or disclosure of any Material Intellectual Property to which a Grantor, now or hereafter, is a party or a beneficiary.

 

“IP Domestic Security Agreement Supplement”: as defined in Section 5.3(c).

 

“Issuers”: the collective reference to each issuer of any Investment Property or any Pledged Note.

 

“Lenders”: as defined in the preamble hereto.

 

“Material Intellectual Property”: any of the Intellectual Property owned by a Grantor and the material rights of a Grantor under any IP Agreement, including material rights under a license agreement, that (i) is related to computer memory products manufactured and sold in commercial volumes, or processes used to make such products, by Borrower and the Domestic Restricted Subsidiaries and (ii) are rights that, if the Borrower and the Domestic Restricted Subsidiaries failed to own or have such rights, would reasonably be expected to have a Material Adverse Effect.

 

“Material Subsidiary”: each wholly-owned direct Subsidiary that, as of the last day of the fiscal quarter of Borrower most recently ended for which financial statements are available, had total assets (based on book value) as of the end of such quarter in excess of $100,000,000 or that is designated by Borrower as a “Material Subsidiary”.

 

“New York UCC”: the Uniform Commercial Code as from time to time in effect in the State of New York.

 

“Non-Borrower Guarantor”: each Guarantor other than the Borrower.

 

“Obligations”:  (i) in the case of the Borrower, the Borrower Obligations, and (ii) in the case of each Non-Borrower Guarantor, its Other Loan Party Obligations.

 

“Officer’s Certificate”: a certificate of a Responsible Officer of the Borrower.

 

“Other Loan Party Obligations”: with respect to any Non-Borrower Guarantor, all obligations and liabilities of such Guarantor which may arise under or in connection with this Agreement (including, without limitation, pursuant to Section 2 hereof), any Credit Agreement or any other Loan Document, in each case whether on account of guarantee obligations, reimbursement

 

5

 

obligations, fees, indemnities, costs, expenses or otherwise (including, without limitation, all fees and disbursements of counsel to the applicable Administrative Agent, the Collateral Agent, or to the Lenders that are required to be paid by such Guarantor pursuant to the terms of this Agreement, the Credit Agreement or any other Loan Document).

 

“Patents”:  (i) all letters patent and patent rights of the United States, any other country or any political subdivision thereof, all reissues, reexaminations, and extensions thereof, including, without limitation, any of the foregoing referred to in Schedule 5, (ii) all applications for letters patent of the United States or any other country and all divisionals, continuations and continuations-in-part thereof, including, without limitation, any of the foregoing referred to in Schedule 5, and (iii) all rights to obtain any reissues or extensions of the foregoing.

 

“Patent License”: all agreements, whether written or oral, providing for the grant by or to any Grantor of any right to make, have made, manufacture, use, sell, offer to sell, have sold, import or export any invention covered in whole or in part by a Patent.

 

“Patent Security Agreement”: as defined in Section 5.3(b).

 

“Pledged Notes”: the promissory notes listed on Schedule 2, and all other promissory notes held by and payable to any Grantor (other than promissory notes issued in connection with extensions of trade credit by any Grantor in the ordinary course of business) for Indebtedness in excess of $100,000,000 in aggregate principal amount.

 

“Pledged Stock”: the shares of Capital Stock listed on Schedule 2, together with any other shares, stock certificates, options, interests or rights of any nature whatsoever in respect of the Capital Stock of any Person (other than an Excluded Property Subsidiary) that may be issued or granted to, or held by, a Grantor while this Agreement is in effect; provided that in no event shall more than 65% of the total outstanding Foreign Subsidiary Voting Stock be required to be pledged hereunder.

 

“Permitted Prior Lien”:  a Permitted Lien of the type described in any of clauses (2), (3), (4), (5) or (13) of the definition thereof, or of the type described in clause (17) with respect to Liens of the type described in any of clauses (2), (4), (5) or (13) of the definition thereof.

 

“Proceeds”: all “proceeds” as such term is defined in Section 9-102(a)(64) of the New York UCC and, in any event, shall include, without limitation, all dividends or other income from the Investment Property, collections thereon or distributions or payments with respect thereto.

 

“Receivable”: any right to payment for goods sold or leased or for services rendered, whether or not such right is evidenced by an Instrument or Chattel Paper and whether or not it has been earned by performance (including, without limitation, any Account).

 

“Responsible Officer”: any of the Borrower’s Chief Executive Officer, President, Chief Operating Officer, any Vice President, Chief Financial Officer, Controller, Treasurer, any Assistant Treasurer or Secretary.

 

“Secured Debt Termination Date”: as defined in the Pari Passu Intercreditor Agreement.

 

6

 

“Securities Act”: the Securities Act of 1933, as amended.

 

“Series of First Lien Debt”: as defined in the Pari Passu Intercreditor Agreement.

 

“Trademarks”: (i) all trademarks, service marks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service marks, logos, domain names, and other source or business identifiers, and all goodwill associated therewith, all registrations and recordings thereof, and all applications in connection therewith (other than “intent to use” applications included in Excluded Property), whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or any other country or any political subdivision thereof, or otherwise, and all common-law rights related thereto, including, without limitation, any of the foregoing referred to in Schedule 5, and (ii) the right to obtain all renewals thereof.

 

“Trademark License”: any agreement, whether written or oral, providing for the grant by or to any Grantor of any right to use any Trademark.

 

“Trademark Security Agreement”: as defined in Section 5.3(b).

 

1.2                                 Other Definitional Provisions.  (a)  The words “hereof,” “herein”, “hereto” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section and Schedule references are to this Agreement unless otherwise specified.

 

(b)                                 The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.

 

(c)                                  Where the context requires, terms relating to the Collateral or any part thereof, when used in relation to a Grantor, shall refer to such Grantor’s Collateral or the relevant part thereof.

 

SECTION 2.                            Guarantee

 

2.1                                 Guarantee.  (a)  Each of the Guarantors hereby, jointly and severally, absolutely, unconditionally and irrevocably, guarantees to the Collateral Agent, for the ratable benefit of the Secured Parties and their respective successors, indorsees, transferees and assigns, as a primary obligor and not merely as surety, the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of all Guaranteed Obligations.

 

(b)                                 Without limiting the generality of anything herein, or in any other First Lien Documents to the contrary notwithstanding, the maximum liability of each Non-Borrower Guarantor hereunder shall be limited to such amount as will, after giving effect to such maximum liability and all other liabilities (contingent or otherwise) of such Guarantor that are relevant under applicable Federal or state bankruptcy or insolvency laws, fraudulent conveyance or transfer laws, or similar such laws, result in the obligations of such Guarantor hereunder not constituting a fraudulent transfer or conveyance under applicable Federal or state laws (after giving effect to all rights of subrogation, contribution or reimbursement, subject to Section 2.3 ).

 

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(c)                                  Each Non-Borrower Guarantor agrees that the Guaranteed Obligations may at any time and from time to time exceed the amount of the liability of such Guarantor hereunder without impairing the guarantee contained in this Section 2 or affecting the rights and remedies of the Collateral Agent or any Secured Party hereunder.

 

(d)                                 The guarantee contained in this Section 2 shall remain in full force and effect until the Secured Debt Termination Date with respect to the First Lien Debt shall have occurred.

 

(e)                                  No payment made by the Borrower, any of the Non-Borrower Guarantors, any other guarantor or any other Person or received or collected by the Collateral Agent or any Secured Party from the Borrower, any of the Non-Borrower Guarantors, any other guarantor or any other Person by virtue of any action or proceeding or any set-off or appropriation or application at any time or from time to time in reduction of or in payment of the Guaranteed Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of any Guarantor hereunder which shall, notwithstanding any such payment (other than any payment made by such Guarantor in respect of the Guaranteed Obligations or any payment received or collected from such Guarantor in respect of the Guaranteed Obligations), remain liable for the Guaranteed Obligations up to the maximum liability of such Guarantor hereunder until the Secured Debt Termination Date with respect to the First Lien Debt shall have occurred.

 

2.2                                 Right of Contribution.  Each Non-Borrower Guarantor hereby agrees that to the extent that a Non-Borrower Guarantor shall have paid more than its proportionate share of any payment made hereunder, such Non-Borrower Guarantor shall be entitled to seek and receive contribution from and against any other Non-Borrower Guarantor hereunder which has not paid its proportionate share of such payment.  Each Non-Borrower Guarantor’s right of contribution shall be subject to the terms and conditions of Section 2.3.  The provisions of this Section 2.2 shall in no respect limit the obligations and liabilities of any Guarantor to the Collateral Agent and the Secured Parties, and each Guarantor shall remain liable to the Collateral Agent and the Secured Parties for the full amount guaranteed by such Guarantor hereunder.

 

2.3                                 No Subrogation.  Notwithstanding any payment made by any Guarantor hereunder or any set-off or application of funds of any Guarantor by the Collateral Agent or any Secured Party, no Guarantor shall be entitled to seek or enforce its right to be subrogated to any of the rights of the Collateral Agent or any Secured Party against the Borrower or any other Guarantor or any collateral security or guarantee or right of offset held by the Collateral Agent or any Secured Party for the payment of the Guaranteed Obligations, nor shall any Guarantor seek or be entitled to seek any contribution or reimbursement from the Borrower or any other Guarantor in respect of payments made by such Guarantor hereunder, until all amounts owing to the Collateral Agent and the Secured Parties by the Borrower on account of the Borrower Obligations are paid in full (other than contingent indemnification obligations for which no claim has been asserted) and the Secured Debt Termination Date with respect to the First Lien Debt shall have occurred.  If any amount shall be paid to any Guarantor on account of such subrogation rights at any time when all of the Borrower Obligations shall not have been paid in full or such payment is otherwise prohibited pursuant to the immediately preceding sentence, such amount shall be held by such Guarantor in trust for the Collateral Agent and the Secured Parties, segregated from other funds of such Guarantor, and shall,

 

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forthwith upon receipt by such Guarantor, be turned over to the Collateral Agent in the exact form received by such Guarantor (duly indorsed by such Guarantor to the Collateral Agent, if required), to be applied against the Borrower Obligations, whether matured or unmatured, in such order as the Collateral Agent may determine.

 

2.4                                 Amendments, etc with respect to the Guaranteed Obligations.  Each Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights against any Guarantor and without notice to or further assent by any Guarantor, any demand for payment of any of the Guaranteed Obligations made by the Collateral Agent or any other Secured Party may be rescinded by the Collateral Agent or such Secured Party and any of the Guaranteed Obligations may be continued, and the Guaranteed Obligations, or the liability of any other Person upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by the Collateral Agent or any Secured Party, and the First Lien Documents and any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in whole or in part, as the Collateral Agent (or the relevant Secured Parties, as the case may be) may deem advisable from time to time, and any collateral security, guarantee or right of offset at any time held by the Collateral Agent or any Secured Party for the payment of the Guaranteed Obligations may be sold, exchanged, waived, surrendered or released.  Neither the Collateral Agent nor any Lender nor any Secured Party shall have any obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Guaranteed Obligations or for the guarantee contained in this Section 2 or any property subject thereto.

 

2.5                                 Guarantee Absolute and Unconditional.  Each Guarantor waives any and all notice of the creation, renewal, extension or accrual of any of the Guaranteed Obligations and notice of or proof of reliance by the Collateral Agent or any other Secured Party upon the guarantee contained in this Section 2 or acceptance of the guarantee contained in this Section 2; the Guaranteed Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon the guarantee contained in this Section 2; and all dealings between the Borrower and any of the Guarantors, on the one hand, and the Collateral Agent and the Secured Parties, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon the guarantee contained in this Section 2.  Each Guarantor waives diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon the Borrower or any of the Non-Borrower Guarantors with respect to the Guaranteed Obligations.  Each Guarantor understands and agrees that the guarantee contained in this Section 2 shall be construed as a continuing, absolute and unconditional guarantee of payment without regard to (a) the validity or enforceability of any First Lien Documents, any of the Guaranteed Obligations or any other collateral security therefor or guarantee or right of offset with respect thereto at any time or from time to time held by the Collateral Agent or any other Secured Party, (b) any defense, set-off or counterclaim (other than a defense of payment or performance) which may at any time be available to or be asserted by the Borrower or any other Person against the Collateral Agent or any other Secured Party, or (c) any other circumstance whatsoever (with or without notice to or knowledge of the Borrower, such Guarantor or any other Guarantor) which constitutes, or might be construed to constitute, an equitable or legal discharge of the Borrower or any other obligor for the Guaranteed Obligations, or of such Guarantor under the guarantee

 

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contained in this Section 2, in bankruptcy or in any other instance.  When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against any Guarantor, the Collateral Agent or any other Secured Party may, but shall be under no obligation to, make a similar demand on or otherwise pursue such rights and remedies as it may have against the Borrower, any other Guarantor or any other Person or against any collateral security or guarantee for the Guaranteed Obligations or any right of offset with respect thereto, and any failure by the Collateral Agent or any other Secured Party to make any such demand, to pursue such other rights or remedies or to collect any payments from the Borrower, any other Guarantor or any other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of the Borrower, any other Guarantor or any other Person or any such collateral security, guarantee or right of offset, shall not relieve any Guarantor of any obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of the Collateral Agent or any other Secured Party against any Guarantor.  For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings.

 

2.6                                 Reinstatement.  The guarantee contained in this Section 2 shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of any of the Guaranteed Obligations is rescinded or must otherwise be restored or returned by the Collateral Agent or any other Secured Party upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Borrower or any Non-Borrower Guarantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Borrower or any Non-Borrower Guarantor or any substantial part of its property, or otherwise, all as though such payments had not been made.

 

2.7                                 Payments.  Each Guarantor hereby jointly and severally guarantees that payments hereunder will be paid to the applicable Administrative Agent without set-off or counterclaim in Dollars at the applicable Funding Office.

 

SECTION 3.                            Grant of Security Interest

 

Each Grantor hereby grants to the Collateral Agent, for the ratable benefit of the Secured Parties, a security interest in all of the following property now owned or at any time hereafter acquired by such Grantor or in which such Grantor now has or at any time in the future may acquire any right, title or interest (collectively, the “Collateral”), as collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of such Grantor’s Obligations:

 

(a)                                 all Accounts;

 

(b)                                 all Chattel Paper;

 

(c)                                  all Documents;

 

(d)                                 all Collateral Accounts;

 

(e)                                  all Equipment;

 

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(f)                                   all Fixtures on or to Mortgaged Property;

 

(g)                                  all General Intangibles;

 

(h)                                 all Instruments;

 

(i)                                     all Intellectual Property;

 

(j)                                    all Inventory;

 

(k)                                 all Goods;

 

(l)                                     all Investment Property;

 

(m)                             all books and records pertaining to the Collateral; and

 

(n)                                 to the extent not otherwise included, all Proceeds, Supporting Obligations and products of any and all of the foregoing and all collateral security and guarantees given by any Person with respect to any of the foregoing;

 

provided, however, that notwithstanding any of the other provisions set forth in this Section 3, this Agreement shall not constitute a grant of a security interest in any Excluded Property.  For the avoidance of doubt, and notwithstanding anything to the contrary in this Agreement or any other Loan Document, no Obligation shall be (i) guaranteed by any Foreign Subsidiary, FSHCO or other Subsidiary that is not a Grantor, or (ii) secured by any assets of any Foreign Subsidiary, FSHCO, or other Subsidiary that is not a Grantor (including any Equity Interests held directly or indirectly thereby, or any rights to or interest in intangible property under a license agreement or other arrangement related to the development, ownership, or exploitation of intangible property).

 

SECTION 4.                            Representations and Warranties

 

To induce the Collateral Agent and the Lenders to enter into and to make their respective extensions of credit pursuant to the Credit Agreement, each Grantor hereby represents and warrants to the Collateral Agent that:

 

4.1                                 Title; No Other Liens.  Except for Permitted Liens and Liens not prohibited by Section 6.2 of the Credit Agreement, such Grantor owns, or has rights in, each item of the Collateral free and clear of any and all Liens.  No effective financing statement or other public notice with respect to all or any part of the Collateral is on file or of record in any public office, except such as have been filed in favor of the Collateral Agent, for the ratable benefit of the Secured Parties, pursuant to this Agreement or as are filed with respect to Permitted Liens or Liens not prohibited by Section 6.2 of the Credit Agreement.

 

4.2                                 Perfected First Priority Liens.  The security interests granted pursuant to this Agreement (a) upon completion of the filings and other actions specified on Schedule 3 (which, in the case of all filings and other documents referred to on said Schedule, have been delivered to the Collateral Agent in completed and duly executed form to the extent required to be delivered prior to

 

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the Closing Date) will constitute valid perfected security interests in all of the Collateral for which such filings and actions are effective to perfect such security interests in favor of the Collateral Agent, for the ratable benefit of the Secured Parties, as collateral security for such Grantor’s Obligations, enforceable in accordance with the terms hereof and (b) are prior to all other Liens on the Collateral other than Permitted Liens and Liens not prohibited by Section 6.2 of the Credit Agreement.

 

4.3                                 Jurisdiction of Organization; Chief Executive Office.  On the date hereof, such Grantor’s jurisdiction of organization, identification number from the jurisdiction of organization (if any), and the location of such Grantor’s chief executive office or sole place of business, as the case may be, are specified on Schedule 4.

 

4.4                                 Investment Property.  (a)  The shares of Pledged Stock pledged by such Grantor hereunder constitute all the issued and outstanding shares of all classes of the Capital Stock of each Issuer owned by such Grantor or, in the case of Foreign Subsidiary Voting Stock, 65% of the outstanding Foreign Subsidiary Voting Stock of each relevant Issuer.

 

(b)                                 All the shares of Pledged Stock issued by an Issuer which is a Subsidiary of a Grantor have been duly and validly issued and are, if such shares are shares of stock in a domestic corporation, fully paid and nonassessable.

 

(c)                                  Each of the Pledged Notes issued by an Issuer which is a Subsidiary of such Grantor constitutes the legal, valid and binding obligation of the obligor with respect thereto, enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing.

 

4.5                                 Intellectual Property.  (a)  Except as either individually or in the aggregate could not be reasonably expected to have a Material Adverse Effect (i) to the knowledge of each Grantor, the operation of such Grantor’s business as currently conducted and the use of the Material Intellectual Property in connection therewith do not infringe, misappropriate, dilute, misuse or otherwise violate the intellectual property rights of any third party; and (ii) such Grantor is the exclusive owner or joint owner of all right, title and interest in and to the Material Intellectual Property, or is entitled to use all such Material Intellectual Property subject only to the terms of the related IP Agreements.

 

(b)                                 The Intellectual Property set forth on Schedule 5 includes all registrations of or applications for Patents, Trademarks and Copyrights that are Material Intellectual Property owned by a Grantor.  For the avoidance of doubt, the inclusion of specific Intellectual Property on Schedule 5 shall not create any implication that any such Intellectual Property constitutes Material Intellectual Property.

 

(c)                                  The owned Material Intellectual Property owned by each Grantor is subsisting and has not been adjudged invalid or unenforceable in whole or part, and to the knowledge of such Grantor, is valid and enforceable. For clarity, the foregoing representation and

 

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warranty shall not apply to Material Intellectual Property constituting rights under any IP Agreement.

 

(d)                                 The consummation of the transactions contemplated by the Credit Agreement will not result in the termination or impairment of any of the Material Intellectual Property or any Grantor’s rights therein.  For clarity, the foregoing representation and warranty shall not apply to the exercise by the Collateral Agent, the Administrative Agent, or the Lenders of any remedy under this Agreement, including the direct enforcement of any rights under any IP Agreement.

 

SECTION 5.                            Covenants

 

Each Grantor covenants and agrees with the Collateral Agent and the Secured Parties that, from and after the date of this Agreement and until the Secured Debt Termination Date with respect to the First Lien Debt:

 

5.1                                 Maintenance of Perfected Security Interest; Further Documentation.  (a)  Such Grantor shall maintain the security interest created by this Agreement as a perfected security interest having the priority described in clause (b) of Section 4.2 and shall defend such security interest against the claims and demands of all Persons whomsoever; provided that such Grantor shall not be required to take any action to perfect a security interest in the Collateral other than those actions described in clause (a) of Section 4.2, Section 5.3, Section 5.4 or Section 5.5.

 

(b)                                 At any time and from time to time, upon the written request of the Collateral Agent, and at the sole expense of such Grantor, such Grantor will promptly and duly execute and deliver, and have recorded, such further instruments and documents and take such further actions as the Collateral Agent may reasonably request for the purpose of obtaining or preserving the full benefits of this Agreement and of the rights and powers herein granted, including, without limitation authorize, and have recorded, any financing or continuation statements under the Uniform Commercial Code (or other similar laws) with the applicable filing office in the jurisdiction of formation or incorporation of each Grantor with respect to the security interests created, but subject in each case to the limitations set forth in Section 5.1(a).

 

(c)                                  For the avoidance of doubt, notwithstanding anything herein to the contrary, except as set forth in clause (a) of Section 5.1, no Grantor shall be required to (A) take any action with respect to perfection by any other means besides filings of the type specified in Section 4.2, which other methods include possession or “control” under the Uniform Commercial Code (whether effected by transfer of possession, control agreements or other steps) or any other method with respect to any Documents, Instruments, Investment Property, Chattel Paper, cash, Deposit Accounts, commodities and securities accounts (including securities entitlements and related assets), except, with respect to Pledged Stock and Pledged Notes, for the actions required pursuant to Section 5.3, Section 5.4 and Section 5.5, (B) obtain landlord lien waivers, estoppels or collateral access letters with respect to any leasehold interests in real property, (C) authorize or have filed any financing statement as a fixture filing, (D) take any action with respect to perfection that may be required under non-U.S. laws, (E) take any action to obtain any consents or agreements from third parties to permit the grant of a

 

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security interest in any Excluded Property or (F) take any action with respect to perfection with respect to any consignment of goods. For the further avoidance of doubt, notwithstanding anything herein to the contrary, except as set forth in clause (a) of Section 5.1, prior to an enforcement event following the occurrence and continuation of an Event of Default no notices shall be sent by the Collateral Agent to, or required by the Collateral Agent to be sent by any Grantor, to account debtors or other third party obligors notifying such account debtors or obligors of the security interests created hereby or directing such account debtors or third party obligors to make payment to a different person or account.

 

5.2                                 Changes in Name, etc.  Such Grantor will promptly (and in any event within 20 days or such longer period as is reasonably agreed to by the Collateral Agent) provide prior written notice to the Collateral Agent and delivery to the Collateral Agent of all additional financing statements and other executed documents reasonably requested by the Collateral Agent to maintain the validity, perfection and priority of the security interests provided for herein, if such Grantor (i) changes its jurisdiction of organization from that referred to in Section 4.3 or (ii) changes its name, and such Grantor shall deliver to the Collateral Agent additional financing statements as reasonably requested by the Collateral Agent to maintain the validity, perfection and priority of the security interests provided for herein.

 

5.3                                 Intellectual Property.  (a)  Except as could not reasonably be expected to have a Material Adverse Effect, subject to the provisions of paragraph (iv) below:

 

(i)                   With respect to each item of its Material Intellectual Property, each Grantor agrees to take, at its expense, actions, which may include, without limitation, registering in the U.S. Patent and Trademark Office and the U.S. Copyright Office, to (x) maintain the validity and enforceability of such Material Intellectual Property and maintain such Material Intellectual Property in full force and effect, and (y) pursue the registration and maintenance of each Patent, Trademark, or Copyright registration or application, now or hereafter included in such Material Intellectual Property of such Grantor, including, without limitation, the payment of required fees and taxes, the filing of responses to office actions issued by the U.S. Patent and Trademark Office or the U.S. Copyright Office, the filing of applications for renewal or extension, the filing of affidavits under Sections 8 and 15 of the U.S. Trademark Act, the filing of divisional, continuation, continuation-in-part, reissue and renewal applications or extensions, the payment of maintenance fees and the participation in interference, reexamination, opposition, cancellation, inter partes review, infringement and misappropriation proceedings.

 

(ii)                No Grantor shall do or permit any act or knowingly omit to do any act whereby any of its Material Intellectual Property may lapse, be terminated or become invalid or unenforceable or placed in the public domain (or, in case of a trade secret, lose its competitive value).

 

(iii)             Each Grantor shall take actions to preserve and protect each item of its Material Intellectual Property.

 

(iv)            Notwithstanding anything herein to the contrary, each Grantor shall only be required to take actions or refrain from taking or omit to take actions pursuant to the foregoing

 

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clauses (i) through (iii) as it determines in the exercise of its reasonable business judgment are commercially reasonable, and nothing in the foregoing clauses (i) through (iii) shall be construed as prohibiting or restricting a Grantor from effecting any transaction not prohibited by the Credit Agreement (including, without limitation, a transfer, conveyance, sale or other disposition or license not prohibited by the Credit Agreement).

 

(b)                                 With respect to its Material Intellectual Property, within 30 days of the Closing Date or such later date which the Collateral Agent consents to in writing, each Grantor agrees to execute and deliver to the Collateral Agent, with respect to all Material Intellectual Property that is registered or with respect to which registration is pending (i) an agreement, in substantially the form set forth in Exhibit A hereto or otherwise in form and substance reasonably satisfactory to the Collateral Agent (a “Copyright Security Agreement”), (ii) an agreement, in substantially the form set forth in Exhibit B hereto or otherwise in form and substance reasonably satisfactory to the Collateral Agent (a “Patent Security Agreement”) and (iii) an agreement, in substantially the form set forth in Exhibit C hereto or otherwise in form and substance reasonably satisfactory to the Collateral Agent (a “Trademark Security Agreement” and, together with each Copyright Security Agreement and each Patent Security Agreement, the “Intellectual Property Security Agreements”), in each case, for recording the security interest granted hereunder to the Collateral Agent in such Material Intellectual Property with the U.S. Patent and Trademark Office or the U.S. Copyright Office, as applicable.  For the avoidance of doubt, the inclusion of specific Intellectual Property in any Intellectual Property Security Agreement shall not create any implication that any such Intellectual Property constitutes Material Intellectual Property.

 

(c)                                  Each Grantor agrees that should it obtain an ownership interest in any Intellectual Property that is not on the date hereof a part of the Material Intellectual Property (“After-Acquired Material Intellectual Property”) (i) the provisions of this Agreement shall automatically apply thereto, and (ii) any such After-Acquired Material Intellectual Property and, in the case of Trademarks, the goodwill symbolized thereby, shall automatically become part of the Material Intellectual Property if and to the extent such After-Acquired Material Intellectual Property meets the definition of Material Intellectual Property, subject to the terms and conditions of this Agreement with respect thereto.  Following the acquisition of its interest in any such After-Acquired Material Intellectual Property (on at least a quarterly basis, and with respect to After-Acquired Material Intellectual Property constituting registered Copyrights, within thirty (30) days of such acquisition), each Grantor shall provide written notice to the Collateral Agent identifying the registered or applied-for Patents, Trademarks and/or Copyrights that are not on the date hereof a part of the Material Intellectual Property, including any such After-Acquired Material Intellectual Property, (other than any such registered or applied-for Patents, Trademarks and Copyrights as to which a prior notice under this Section 5.3(c) has been provided and an IP Domestic Security Agreement Supplement, as hereinafter defined, has been recorded as required by this Section 5.3(c)) and such notice shall include all such new After-Acquired Material Intellectual Property, and such Grantor shall execute and deliver to the Collateral Agent with such written notice, or otherwise authenticate, an agreement in form and substance reasonably satisfactory to the Collateral Agent (an “IP Domestic Security Agreement Supplement”) covering such Intellectual Property, which IP Domestic Security Agreement Supplement shall be recorded with the U.S. Patent and Trademark Office, the U.S. Copyright Office and/or any other U.S. governmental authorities necessary to perfect the security interest hereunder in any such Intellectual Property. Notwithstanding anything to the contrary herein,

 

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nothing in this Agreement or any other Loan Document shall require any Loan Party or any of their Subsidiaries to make any filings or take any actions to record or perfect the Collateral Agent’s Lien on and security interest in any Intellectual Property other than Material Intellectual Property.  For the avoidance of doubt, the inclusion of specific Intellectual Property in any notice of After-Acquired Material Intellectual Property or in any IP Domestic Security Agreement Supplement shall not create any implication that any such Intellectual Property constitutes Material Intellectual Property.

 

(d)                                 Notwithstanding anything to the contrary in this Agreement or any other Loan Document, no Grantor shall be obligated to (a) effect any filings with respect to Material Intellectual Property outside of the United States, or (b) perfect any Lien in any Intellectual Property established in any jurisdiction other than the United States.

 

5.4                                 Delivery of Pledged Notes.  If any Instrument is or becomes a Pledged Note, such Instrument shall promptly be delivered to the Collateral Agent, duly indorsed in a manner satisfactory to the Collateral Agent, to be held as Collateral pursuant to this Agreement.

 

5.5                                 Investment Property.  If such Grantor shall become entitled to receive or shall receive any certificate (including, without limitation, any certificate representing a dividend or a distribution in connection with any reclassification, increase or reduction of capital or any certificate issued in connection with any reorganization), option or rights in respect of the Pledged Stock (constituting Collateral hereunder) of any Material Subsidiary of such Grantor, whether in addition to, in substitution of, as a conversion of, or in exchange for, any shares of the Pledged Stock of a Material Subsidiary of such Grantor, or otherwise in respect thereof, such Grantor shall promptly deliver to the Collateral Agent in the exact form received, duly indorsed by such Grantor to the Collateral Agent, together with an undated stock power covering such certificate duly executed in blank by such Grantor and with, if the Collateral Agent so requests, signature guaranteed, to be held by the Collateral Agent, subject to the terms hereof, as additional collateral security for the Obligations; provided that in no event shall more than 65% of the total outstanding Foreign Subsidiary Voting Stock be required to be delivered or pledged hereunder.

 

SECTION 6.                            Remedial Provisions

 

6.1                                 Certain Matters Relating to Receivables. If required by the Collateral Agent at any time after the occurrence and during the continuance of an Event of Default, any payments of Receivables, when collected by any Grantor, (i) shall be forthwith (and, in any event, within three Business Days) deposited by such Grantor in the exact form received, duly indorsed by such Grantor to the Collateral Agent if required, in a Collateral Account maintained under the sole dominion and control of the Collateral Agent, subject to withdrawal by the Collateral Agent for the account of the Secured Parties only as provided in Section 6.4, and (ii) until so turned over, shall be held by such Grantor in trust for the Collateral Agent and the Secured Parties, segregated from other funds of such Grantor. Each such deposit of Proceeds of Receivables shall be accompanied by a report identifying in reasonable detail the nature and source of the payments included in the deposit.

 

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6.2                                 Communications with Obligors; Grantors Remain Liable.  (a) The Collateral Agent in its own name or in the name of others may at any time after the occurrence and during the continuance of an Event of Default communicate with obligors under the Receivables constituting Collateral hereunder and parties to the contracts constituting Collateral hereunder to verify with them to the Collateral Agent’s satisfaction the existence, amount and terms of any such Receivables or contracts.

 

(b)                                 Upon the request of the Collateral Agent at any time after the occurrence and during the continuance of an Event of Default, each Grantor shall notify obligors on the Receivables constituting Collateral hereunder and parties to the contracts constituting Collateral hereunder that such Receivables and the contracts have been assigned to the Collateral Agent for the ratable benefit of the Secured Parties and that payments in respect thereof shall be made directly to the Collateral Agent.

 

(c)                                  Anything herein to the contrary notwithstanding, each Grantor shall remain liable under each of the Receivables and contracts to observe and perform all the conditions and obligations to be observed and performed by it thereunder, all in accordance with the terms of any agreement giving rise thereto. Neither the Collateral Agent nor any Secured Party shall have any obligation or liability under any Receivable (or any agreement giving rise thereto) or contract by reason of or arising out of this Agreement or the receipt by the Collateral Agent or any Secured Party of any payment relating thereto, nor shall the Collateral Agent or any Secured Party be obligated in any manner to perform any of the obligations of any Grantor under or pursuant to any Receivable (or any agreement giving rise thereto) or contract, to make any payment, to make any inquiry as to the nature or the sufficiency of any payment received by it or as to the sufficiency of any performance by any party thereunder, to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times.

 

6.3                                 Investment Property and Instruments.  (a)  Unless an Event of Default shall have occurred and be continuing and the Collateral Agent shall have given written notice to the relevant Grantor of the Collateral Agent’s intent to exercise its corresponding rights pursuant to Section 6.3(b), each Grantor shall be permitted to receive all cash dividends paid in respect of the Investment Property (including Pledged Stock) and all payments made in respect of Instruments (including the Pledged Notes), in each case paid in the normal course of business of the relevant Issuer and consistent with past practice and to exercise all voting and corporate or other organizational rights with respect to the Investment Property; provided that no vote shall be cast or corporate or other organizational right exercised or other action taken which would be inconsistent with or result in any violation of any provision of the Credit Agreement or this Agreement.

 

(b)                                 If an Event of Default shall occur and be continuing and the Collateral Agent shall give written notice of its intent to exercise its rights to the relevant Grantor or Grantors, (i) the Collateral Agent shall have the right to receive any and all cash dividends, payments or other Proceeds paid in respect of the Investment Property constituting Collateral hereunder and make application thereof to the Obligations in such order as the Collateral Agent may determine, and (ii) the Collateral Agent shall have the right to cause any or all of the Investment Property to be registered in the name of the Collateral Agent or its nominee, and the Collateral Agent or its

 

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nominee may thereafter exercise (x) all voting, corporate and other rights pertaining to such Investment Property at any meeting of shareholders of the relevant Issuer or Issuers or otherwise and (y) any and all rights of conversion, exchange and subscription and any other rights, privileges or options pertaining to such Investment Property as if it were the absolute owner thereof (including, without limitation, the right to exchange at its discretion any and all of the Investment Property constituting Collateral hereunder upon the merger, consolidation, reorganization, recapitalization or other fundamental change in the corporate or other organizational structure of any Issuer, or upon the exercise by any Grantor or the Collateral Agent of any right, privilege or option pertaining to such Investment Property, and in connection therewith, the right to deposit and deliver any and all of such Investment Property with any committee, depositary, transfer agent, registrar or other designated agency upon such terms and conditions as the Collateral Agent may determine), all without liability except to account for property actually received by it, but the Collateral Agent shall have no duty to any Grantor to exercise any such right, privilege or option and shall not be responsible for any failure to do so or delay in so doing.

 

(c)                                  Each Grantor hereby authorizes and instructs each Issuer of any Investment Property pledged by such Grantor hereunder to (i) comply with any instruction received by it from the Collateral Agent in writing that (x) states that an Event of Default has occurred and is continuing and (y) is otherwise in accordance with the terms of this Agreement, without any other or further instructions from such Grantor, and each Grantor agrees that each Issuer shall be fully protected in so complying, and (ii) unless otherwise expressly permitted hereby, pay any dividends or other payments with respect to the Investment Property directly to the Collateral Agent.

 

6.4                                 Proceeds to be Turned Over to Collateral Agent.  In addition to the rights of the Collateral Agent and the Secured Parties specified in Section 6.1 with respect to payments of Receivables, if an Event of Default shall occur and be continuing, all Proceeds received by any Grantor consisting of cash, checks and other near-cash items shall be held by such Grantor in trust for the Collateral Agent and the Secured Parties, segregated from other funds of such Grantor, and shall, forthwith upon receipt by such Grantor, be turned over to the Collateral Agent in the exact form received by such Grantor (duly indorsed by such Grantor to the Collateral Agent, if required).  All Proceeds constituting Collateral hereunder received by the Collateral Agent hereunder shall be held by the Collateral Agent in a Collateral Account maintained under its sole dominion and control.  All Proceeds constituting Collateral hereunder while held by the Collateral Agent in a Collateral Account (or by such Grantor in trust for the Collateral Agent and the Secured Parties) shall continue to be held as collateral security for all the Obligations and shall not constitute payment thereof until applied as provided in Section 6.5.

 

6.5                                 Application of Proceeds.  At such intervals as may be agreed upon by the Borrower and the Collateral Agent, or, if an Event of Default shall have occurred and be continuing, at any time at the Collateral Agent’s election, the Collateral Agent may apply all or any part of Proceeds constituting Collateral, and any proceeds of the guarantee set forth in Section 2, in payment of the Obligations in the following order:

 

First, to pay incurred and unpaid fees and expenses of the Collateral Agent under the First Lien Documents;

 

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Second, to the Collateral Agent, for application by it towards payment of amounts then due and owing and remaining unpaid in respect of the Obligations, pro rata among the Secured Parties according to the amounts of the Obligations then due and owing and remaining unpaid to the Secured Parties;

 

Third, to the Collateral Agent, for application by it towards prepayment of the Obligations, pro rata among the Secured Parties according to the amounts of the Obligations then held by the Secured Parties; and

 

Fourth, any balance remaining after the Secured Debt Termination Date with respect to the First Lien Debt shall be paid over to the Borrower or to whomsoever may be lawfully entitled to receive the same;

 

provided that in the event of any inconsistency between the terms of the Pari Passu Intercreditor Agreement and this Section 6.5, the term of the Pari Passu Intercreditor Agreement shall govern.

 

6.6                                 Code and Other Remedies.  (a)  If an Event of Default shall occur and be continuing, the Collateral Agent, on behalf of the Secured Parties, may exercise, in addition to all other rights and remedies granted to them in this Agreement and in any other instrument or agreement securing, evidencing or relating to the Obligations, all rights and remedies of a secured party under the New York UCC or any other applicable law. Without limiting the generality of the foregoing, the Collateral Agent, without demand of performance or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law referred to below) to or upon any Grantor or any other Person (all and each of which demands, defenses, advertisements and notices are hereby waived), may, subject to the requirements of applicable law, in such circumstances forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, and/or may forthwith sell, lease, assign, give option or options to purchase, or otherwise dispose of and deliver the Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels at public or private sale or sales, at any exchange, broker’s board or office of the Collateral Agent or any Secured Party or elsewhere upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit or for future delivery without assumption of any credit risk. The Collateral Agent or any Secured Party shall have the right upon any such public sale or sales, and, to the extent permitted by law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption in any Grantor, which right or equity is hereby waived and released. Each Grantor further agrees, at the Collateral Agent’s request, to assemble the Collateral and make it available to the Collateral Agent at places which the Collateral Agent shall reasonably select, whether at such Grantor’s premises or elsewhere. The Collateral Agent shall apply the net proceeds of any action taken by it pursuant to this Section 6.6, after deducting all reasonable costs and expenses of every kind incurred in connection therewith or incidental to the care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights of the Collateral Agent and the Secured Parties hereunder, including, without limitation, reasonable attorneys’ fees and disbursements, to the payment in whole or in part of the Obligations, in such order as the Collateral Agent may elect, and only after such application and after the payment by the Collateral Agent of any other amount required by any provision of law, including, without limitation, Section 9-615(a)(3) of the New York UCC, need the Collateral Agent account for the surplus, if any, to any Grantor. To the extent permitted by

 

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applicable law, each Grantor waives all claims, damages and demands it may acquire against the Collateral Agent or any Secured Party arising out of the exercise by them of any rights hereunder. If any notice of a proposed sale or other disposition of Collateral shall be required by law, such notice shall be deemed reasonable and proper if given at least 10 days before such sale or other disposition.

 

(b)                                 For the purpose of enabling the Collateral Agent, during the continuance of an Event of Default, to exercise rights and remedies hereunder at such time as the Collateral Agent shall be lawfully entitled to exercise such rights and remedies, and for no other purpose, each Grantor hereby grants to the Collateral Agent, an irrevocable, non-exclusive license to use, reproduce, distribute, perform, display, prepare derivative works based upon, make, have made, sell, offer to sell, have sold, import, export, practice, make improvements, license or sublicense any of the Intellectual Property constituting Collateral now owned or hereafter acquired by such Grantor, wherever the same may be located.  Such license shall include access to all media in which any of the Intellectual Property constituting Collateral may be recorded or stored and to all computer programs used for the compilation or printout hereof.  With respect to Trademarks, such license shall be subject to the requirement that the quality of goods and services offered under the Trademarks be substantially consistent with the quality of the goods and services offered thereunder by such Grantor prior to the Collateral Agent’s exercise of rights and remedies.

 

6.7                                 Registration Rights.  (a)  Each Grantor recognizes that the Collateral Agent may be unable to effect a public sale of any or all the Pledged Stock, by reason of certain prohibitions contained in the Securities Act and applicable state securities laws or otherwise, and may be compelled to resort to one or more private sales thereof to a restricted group of purchasers which will be obliged to agree, among other things, to acquire such securities for their own account for investment and not with a view to the distribution or resale thereof. Each Grantor acknowledges and agrees that any such private sale may result in prices and other terms less favorable than if such sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been made in a commercially reasonable manner. The Collateral Agent shall be under no obligation to delay a sale of any of the Pledged Stock for the period of time necessary to permit the Issuer thereof to register such securities for public sale under the Securities Act, or under applicable state securities laws, even if such Issuer would agree to do so.

 

(b)                                 Each Grantor agrees to use its commercially reasonable efforts to do or cause to be done all such other acts as may be necessary to make such sale or sales of all or any portion of the Pledged Stock pursuant to this Section 6.7 valid and binding and in compliance with any and all other applicable Requirements of Law. Each Grantor further agrees that a breach of any of the covenants contained in this Section 6.7 will cause irreparable injury to the Collateral Agent and the Secured Parties, that the Collateral Agent and the Secured Parties have no adequate remedy at law in respect of such breach and, as a consequence, that each and every covenant contained in this Section 6.7 shall be specifically enforceable against such Grantor, and such Grantor hereby waives and agrees not to assert any defenses against an action for specific performance of such covenants except for a defense that no Event of Default has occurred.

 

6.8                                 Subordination.  Each Grantor hereby agrees that, upon the occurrence and during the continuance of an Event of Default, unless otherwise agreed by the Collateral Agent,

 

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all Indebtedness owing by it to any Domestic Restricted Subsidiary of the Borrower shall be fully subordinated to the indefeasible payment in full in cash of such Grantor’s Obligations.

 

6.9                                 Deficiency.  Each Grantor shall remain liable for any deficiency if the proceeds of any sale or other disposition of the Collateral are insufficient to pay its Obligations and the fees and disbursements of any attorneys employed by the Collateral Agent or any Secured Party to collect such deficiency.

 

6.10                          Pari Passu Intercreditor Agreement.  Notwithstanding anything to the contrary in this Section 6 or Section 7.1, the Pari Passu Intercreditor Agreement shall govern the exercise of rights and the enforcement of remedies hereunder by the Collateral Agent and the Secured Parties. In the event of any conflict between the terms of this Section 6 and the Pari Passu Intercreditor Agreement, the Pari Passu Intercreditor Agreement shall govern.

 

SECTION 7.                            The Collateral Agent

 

7.1                                 Collateral Agent’s Appointment as Attorney-in-Fact, etc.  (a)  Each Grantor hereby irrevocably constitutes and appoints the Collateral Agent and any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of such Grantor and in the name of such Grantor or in its own name, for the purpose of carrying out the terms of this Agreement, to take any and all appropriate action and to execute any and all documents and instruments which may be necessary or desirable to accomplish the purposes of this Agreement. At any time when an Event of Default has occurred and is continuing and without limiting the generality of the foregoing, each Grantor hereby gives the Collateral Agent the power and right, on behalf of such Grantor, without notice to or assent by such Grantor, to do any or all of the following:

 

(i)             in the name of such Grantor or its own name, or otherwise, take possession of and indorse and collect any checks, drafts, notes, acceptances or other instruments for the payment of moneys due under any Receivable or contract or with respect to any other Collateral and file any claim or take any other action or proceeding in any court of law or equity or otherwise deemed appropriate by the Collateral Agent for the purpose of collecting any and all such moneys due under any Receivable or contract or with respect to any other Collateral whenever payable;

 

(ii)          in the case of any Intellectual Property, execute and deliver, and have recorded, any and all agreements, instruments, documents and papers as the Collateral Agent may reasonably request to evidence the Collateral Agent’s and the Secured Parties’ security interest in such Intellectual Property and the goodwill and general intangibles of such Grantor relating thereto or represented thereby;

 

(iii)       pay or discharge taxes and Liens levied or placed on or threatened against the Collateral, effect any repairs or any insurance called for by the terms of this Agreement and pay all or any part of the premiums therefor and the costs thereof;

 

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(iv)      execute, in connection with any sale provided for in Section 6.6 or 6.7, any indorsements, assignments or other instruments of conveyance or transfer with respect to the Collateral; and

 

(v)         (1) direct any party liable for any payment under any of the Collateral to make payment of any and all moneys due or to become due thereunder directly to the Collateral Agent or as the Collateral Agent shall direct; (2) ask or demand for, collect, and receive payment of and receipt for, any and all moneys, claims and other amounts due or to become due at any time in respect of or arising out of any Collateral; (3) sign and indorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications, notices and other documents in connection with any of the Collateral; (4) commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the Collateral or any portion thereof and to enforce any other right in respect of any Collateral; (5) defend any suit, action or proceeding brought against such Grantor with respect to any Collateral; (6) settle, compromise or adjust any such suit, action or proceeding and, in connection therewith, give such discharges or releases as the Collateral Agent may deem appropriate; (7) assign any Copyright, Patent or Trademark (along with the goodwill of the business to which any such Copyright, Patent or Trademark pertains), throughout the world for such term or terms, on such conditions, and in such manner, as the Collateral Agent shall in its sole discretion determine; and (8) generally, sell, transfer, pledge and make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely as though the Collateral Agent were the absolute owner thereof for all purposes, and do, at the Collateral Agent’s option and such Grantor’s expense, at any time, or from time to time, all acts and things which the Collateral Agent deems necessary to protect, preserve or realize upon the Collateral and the Collateral Agent’s and the Secured Parties’ security interests therein and to effect the intent of this Agreement, all as fully and effectively as such Grantor might do.

 

Notwithstanding anything to the contrary in this Section 7.1(a), the Collateral Agent agrees that it will not exercise any rights under the power of attorney provided for in this Section 7.1(a) unless an Event of Default shall have occurred and be continuing.

 

(b)                                 If any Grantor fails to perform or comply with any of its agreements contained herein, the Collateral Agent, at its option, but without any obligation so to do, may perform or comply, or otherwise cause performance or compliance, with such agreement.

 

(c)                                  The reasonable expenses of the Collateral Agent incurred in connection with actions undertaken as provided in this Section 7.1, together with interest thereon at a rate per annum equal to the highest rate per annum at which interest would then be payable on any category of past due Term Loans under the Credit Agreement, from the date of payment by the Collateral Agent to the date reimbursed by the relevant Grantor, shall be payable by such Grantor to the Collateral Agent on demand.

 

(d)                                 Each Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof. All powers, authorizations and agencies contained in this Agreement are coupled with an interest and are irrevocable until this Agreement is terminated and the security interests created hereby are released.

 

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7.2                                 Duty of Collateral Agent.  To the full extent permitted by applicable law, the Collateral Agent’s sole duty with respect to the custody, safekeeping and physical preservation of the Collateral in its possession, under Section 9-207 of the New York UCC or otherwise, shall be to deal with it in the same manner as the Collateral Agent deals with similar property for its own account (and, for the avoidance of doubt, the Collateral Agent shall not be permitted to create a security interest in Collateral in its possession pursuant to Section 9-207(c) of the New York UCC). Neither the Collateral Agent, any Secured Party nor any of their respective officers, directors, employees or agents shall be liable for failure to demand, collect or realize upon any of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of any Grantor or any other Person or to take any other action whatsoever with regard to the Collateral or any part thereof, except as provided herein. The powers conferred on the Collateral Agent and the Secured Parties hereunder are solely to protect the Collateral Agent’s and the Secured Parties’ interests in the Collateral and shall not impose any duty upon the Collateral Agent or any Secured Party to exercise any such powers. The Collateral Agent and the Secured Parties shall be accountable only for amounts that they actually receive as a result of the exercise of such powers, and neither they nor any of their officers, directors, employees or agents shall be responsible to any Grantor for any act or failure to act hereunder, except for their own gross negligence or willful misconduct.

 

7.3                                 Financing Statements.  Pursuant to any applicable law, each Grantor authorizes the Collateral Agent to file or record financing statements and other filing or recording documents or instruments with respect to the Collateral without the signature of such Grantor in such form and in such offices as the Collateral Agent determines appropriate to perfect the security interests of the Collateral Agent under this Agreement. Each Grantor authorizes the Collateral Agent to use the collateral description “all personal property” in any such financing statements. Each Grantor hereby ratifies and authorizes the filing by the Collateral Agent of any financing statement with respect to the Collateral made on or prior to the date hereof.

 

7.4                                 Authority of Collateral Agent.  Each Grantor acknowledges that the rights and responsibilities of the Collateral Agent under this Agreement with respect to any action taken by the Collateral Agent or the exercise or non-exercise by the Collateral Agent of any option, voting right, request, judgment or other right or remedy provided for herein or resulting or arising out of this Agreement shall, as between the Collateral Agent and the Secured Parties, be governed by the Pari Passu Intercreditor Agreement and/or relevant First Lien Documents, and by such other agreements with respect thereto as may exist from time to time among any of them, but, as between the Collateral Agent and the Grantors, the Collateral Agent shall be conclusively presumed to be acting as agent for the Secured Parties with full and valid authority so to act or refrain from acting, and no Grantor shall be under any obligation, or entitlement, to make any inquiry respecting such authority.

 

7.5                                 Pari Passu Intercreditor Agreement.  Notwithstanding anything herein to the contrary, the lien and security interest granted to the Collateral Agent pursuant to this Agreement and the exercise of any right or remedy by the Collateral Agent hereunder are subject to the provisions of the Pari Passu Intercreditor Agreement. Each party hereto (and each Secured Party) acknowledges and agrees that the Collateral Agent may act in accordance with, and shall be required to take certain actions as required by, the terms of the Pari Passu Intercreditor Agreement. Each

 

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party hereto (and each Secured Party) acknowledges and agrees that the Collateral Agent may act in accordance with, and shall be required to take certain actions as required by, the terms of the Pari Passu Intercreditor Agreement. Each of the parties hereto (and each Secured Party) acknowledges and agrees that any such actions shall be permitted, and further agrees that in the event of a conflict between the provisions of this Agreement and the Pari Passu Intercreditor Agreement, the relevant provisions of the Pari Passu Intercreditor Agreement shall control. The parties hereto (and each Secured Party) also acknowledge and agree that the Collateral Agent shall have the benefit of the provisions contained in the Pari Passu Intercreditor Agreement.

 

SECTION 8.                            Miscellaneous

 

8.1                                 Amendments in Writing.  None of the terms or provisions of this Agreement may be waived, amended, supplemented or otherwise modified except in accordance with Section 9.1 of the Credit Agreement and Section 5.02 of the Pari Passu Intercreditor Agreement; provided that the Company and the Collateral Agent may amend this Agreement without consent of any Secured Party to add Collateral for the benefit of the Secured Parties and add provisions related thereto with respect to the exercise of remedies by the Collateral Agent on behalf of the Secured Parties.

 

8.2                                 Notices.  All notices, requests and demands to or upon the Collateral Agent or any Grantor hereunder shall be effected in the manner provided for in Section 9.2 of the Credit Agreement.

 

8.3                                 No Waiver by Course of Conduct; Cumulative Remedies.  Neither the Collateral Agent nor any Secured Party shall by any act (except by a written instrument pursuant to Section 8.1), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default. No failure to exercise, nor any delay in exercising, on the part of the Collateral Agent or any Secured Party any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver by the Collateral Agent or any Lender of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which the Collateral Agent or such Secured Party would otherwise have on any future occasion. The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law.

 

8.4                                 Enforcement Expenses; Indemnification.  (a)  Each Guarantor agrees to pay or reimburse each Secured Party and the Collateral Agent for all its costs and expenses incurred in collecting against such Guarantor under the guarantee contained in Section 2 or otherwise enforcing or preserving any rights under this Agreement and the other First Lien Documents to which such Guarantor is a party, including, without limitation, the fees and disbursements of counsel to each Secured Party and of counsel to the Collateral Agent.

 

(b)                                 Each Guarantor agrees to pay, and to save the Collateral Agent and the Secured Parties harmless from, any and all liabilities with respect to, or resulting from any delay in paying, any and all stamp, excise, sales or other taxes which may be payable or determined to be

 

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payable with respect to any of the Collateral or in connection with any of the transactions contemplated by this Agreement.

 

(c)                                  Each Guarantor agrees to pay, and to save the Collateral Agent and the Secured Parties harmless from, any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery, enforcement, performance and administration of this Agreement to the extent the Borrower would be required to do so pursuant to Section 9.5 of the Credit Agreement or relevant provisions of any other First Lien Document.

 

(d)                                 The agreements in this Section 8.4 shall survive repayment of the Obligations and all other amounts payable under the First Lien Documents.

 

8.5                                 Successors and Assigns.  This Agreement shall be binding upon the successors and assigns of each Grantor and shall inure to the benefit of the Collateral Agent and the Secured Parties and their successors and assigns; provided that no Grantor may assign, transfer or delegate any of its rights or obligations under this Agreement without the prior written consent of the Collateral Agent.

 

8.6                                 Set-Off; Limitation on Individual Actions. In addition to any rights and remedies of the Secured Parties provided by law, each Secured Party shall have the right, without notice to any Grantor, any such notice being expressly waived by each Grantor to the extent permitted by applicable law, upon any Obligations becoming due and payable by any Grantor (whether at the stated maturity, by acceleration or otherwise), to apply to the payment of such Obligations, by setoff or otherwise, any and all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by such Secured Party, any affiliate thereof or any of their respective branches or agencies to or for the credit or the account of such Grantor. Each Secured Party agrees promptly to notify in writing the relevant Grantor and the Collateral Agent after any such application made by such Secured Party, provided that the failure to give such notice shall not affect the validity of such application.

 

8.7                                 Counterparts.  This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts (including by electronic transmission or telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

 

8.8                                 Severability.  Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

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8.9                                 Section Headings.  The Section headings used in this Agreement are for convenience of reference only and are not to affect the construction hereof or be taken into consideration in the interpretation hereof.

 

8.10                          Integration.  This Agreement, the Pari Passu Intercreditor Agreement and the other First Lien Documents represent the entire agreement of the Grantors, the Collateral Agent and the Secured Parties with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Collateral Agent or any Secured Party relative to subject matter hereof and thereof not expressly set forth or referred to herein, in the Pari Passu Intercreditor Agreement or in the other First Lien Documents.

 

8.11                          GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

8.12                          Submission To Jurisdiction; Waivers.  Each Grantor hereby irrevocably and unconditionally:

 

(a)                                 submits for itself and its property in any legal action or proceeding relating to this Agreement, the Pari Passu Intercreditor Agreement and the other First Lien Documents to which it is a party, or for recognition and enforcement of any judgment in respect thereof, to the non exclusive general jurisdiction of the courts of the State of New York, the courts of the United States of America for the Southern District of New York, and appellate courts from any thereof;

 

(b)                                 consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same;

 

(c)                                  agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such Grantor at its address referred to in Section 8.2 or at such other address of which the Collateral Agent shall have been notified pursuant thereto;

 

(d)                                 agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction;

 

(e)                                  waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section any special, exemplary, punitive or consequential damages;

 

8.13                          Acknowledgements.  Each Grantor hereby acknowledges that:

 

(a)                                 it has been advised by counsel in the negotiation, execution and delivery of this Agreement, the Pari Passu Intercreditor Agreement and the other First Lien Documents to which it is a party;

 

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(b)                                 neither the Collateral Agent nor any Secured Party has any fiduciary relationship with or duty to any Grantor arising out of or in connection with this Agreement, the Pari Passu Intercreditor Agreement or any other First Lien Documents, and the relationship between the Grantors, on the one hand, and the Collateral Agent and the Secured Parties, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and

 

(c)                                  no joint venture is created hereby, by the Pari Passu Intercreditor Agreement or the other First Lien Documents or otherwise exists by virtue of the transactions contemplated hereby among the Secured Parties or among the Grantors and the Secured Parties.

 

8.14                          Additional Grantors; Release of Guarantors; Releases of Collateral.  (a) Each Subsidiary of the Borrower that is required to become a party to this Agreement pursuant to the relevant provision of any First Lien Document shall become a Grantor (and a Guarantor) for all purposes of this Agreement upon execution and delivery by such Subsidiary of an Assumption Agreement in the form of Annex II hereto.

 

(b)                                 Non-Borrower Guarantors shall be released from this Agreement to the extent provided below, in each case at the request and expense of the Borrower:

 

(i)             A Non-Borrower Guarantor shall be released from its obligations hereunder in the event that (1) the Indebtedness of or Guarantee by such Non-Borrower Guarantor that resulted in the obligation to Guarantee the Obligations pursuant to Section 6.1(a) of the Credit Agreement (or would have resulted in the creation of a Guarantee had such Guarantee not already been in place) is released or discharged (other than a discharge of (A) a Guarantee as a result of payment under such Guarantee or (B) Indebtedness as a result of the acceleration of such Indebtedness due to a default or event of default under the terms thereof); (2) the Capital Stock of such Non-Borrower Guarantor is sold or otherwise disposed of (including by way of consolidation or merger) such that such Non-Borrower Guarantor is no longer a Domestic Restricted Subsidiary of the Borrower; and (3) if such Subsidiary was not required to Guarantee the Obligations pursuant to Section 6.1(a) of the Credit Agreement but did so at its option, upon the request by such Non-Borrower Guarantor of release at any time; provided that after giving effect to such release the Borrower would be in compliance with the covenant set forth in this Section 6.1 of the Credit Agreement.

 

(ii)          One or more Non-Borrower Guarantors may be released from their obligations hereunder at any time if (1) consent to release of such Non-Borrower Guarantors has been given by the Required Lenders as provided for in the Credit Agreement, and (2) the Borrower has delivered an Officer’s Certificate to the Collateral Agent certifying as to the consents of the Required Lenders that are necessary for such release and that any such necessary consents have been obtained.

 

(iii)       In connection with any release of any Non-Borrower Guarantor pursuant to this Section 8.14, the Collateral Agent shall execute and deliver to the Borrower, at the Borrower’s expense, all documents that the Borrower shall reasonably request to evidence such release. Any execution and delivery of documents pursuant to this Section 8.14 shall be without recourse to or warranty by the Collateral Agent.

 

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(c)                                  Releases of Collateral shall be effected in accordance with the relevant provisions of Section 4.04 of the Pari Passu Intercreditor Agreement.

 

(d)                                 Upon the grant of a Permitted Prior Lien in any item of the Collateral or any sale, lease, transfer or other disposition of any item of Collateral of any Grantor not prohibited by the Credit Agreement, the Lien of the Collateral Agent in such Collateral will be automatically released, and such Permitted Prior Lien, sale, lease, transfer or other disposition of such item of Collateral shall be free and clear of the Lien of the Collateral Agent, without requirement for consent or approval from the Lenders or the Collateral Agent and the Collateral Agent will, at such Grantor’s expense, execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence the release of such item of Collateral from the assignment and security interest granted by this Agreement; provided, however, that, in connection with such request to evidence the release of such item, such Grantor shall have delivered to the Collateral Agent a written request for release describing the item of Collateral and, if applicable, the grant of a Permitted Prior Lien or the terms of the sale, lease, transfer or other disposition in reasonable detail and an Officer’s Certificate to the effect that the transaction is in compliance with the Credit Agreement and as to such other matters as the Collateral Agent may reasonably request; provided, further, that to the extent and at such time as any property that would otherwise constitute Collateral hereunder is no longer subject to a Permitted Prior Lien, such property shall be Collateral and shall be subject to the Lien of the Collateral Agent.

 

8.15                          WAIVER OF JURY TRIAL.  EACH GRANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, THE PARI PASSU INTERCREDITOR AGREEMENT OR ANY OTHER FIRST LIEN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

[remainder of page intentionally left blank]

 

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IN WITNESS WHEREOF, each of the undersigned has caused this Guarantee and Collateral Agreement to be duly executed and delivered as of the date first above written.

 

	
 
    	
MICRON   TECHNOLOGY, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ernest E. Maddock
    
	
 
    	
 
    	
Name:
    	
Ernest   E. Maddock
    
	
 
    	
 
    	
Title:
    	
Chief Financial Officer and
    
	
 
    	
 
    	
 
    	
Vice President, Finance
    

 

 

	
Accepted   and agreed as of the date first written above
    	
 
    
	
 
    	
 
    
	
by:   MICRON SEMICONDUCTOR PRODUCTS, INC.
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Steven L. Thorsen, Jr.
    	
 
    
	
 
    	
Name:
    	
Steven   L. Thorsen, Jr.
    	
 
    
	
 
    	
Title:
    	
President
    	
 
    

 

 

	
 
    	
MORGAN   STANLEY SENIOR FUNDING, INC.,
    
	
 
    	
as   Collateral Agent
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jonathan Rauen
    
	
 
    	
 
    	
Name:
    	
Jonathan   Rauen
    
	
 
    	
 
    	
Title:
    	
Authorized   Signatory
    

 

 

ANNEX I

 

Name of Guarantor

 

Micron Semiconductor Products, Inc.

 

 

ANNEX II

 

ASSUMPTION AGREEMENT, dated as of                        , 20  , made by                                                            (the “Additional Grantor”), in favor of Morgan Stanley Senior Funding, Inc., as Collateral Agent (in such capacity, the “Collateral Agent”) for the Secured Parties referred to below. All capitalized terms not defined herein shall have the meaning ascribed to them in the Guarantee and Collateral Agreement referred to below.

 

W I T N E S S E T H:

 

WHEREAS, Micron Technology, Inc. (the “Borrower”), the Lenders and the Collateral Agent have entered into a Credit Agreement, dated as of April 26, 2016 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”);

 

WHEREAS, in connection with the Credit Agreement, the Borrower and certain of its Subsidiaries (other than the Additional Grantor) have entered into the Guarantee and Collateral Agreement, dated as of April 26, 2016 (as amended, supplemented or otherwise modified from time to time, the “Guarantee and Collateral Agreement”) in favor of the Collateral Agent for the ratable benefit of the Secured Parties (as defined therein);

 

WHEREAS, the Additional Grantor is required or has elected to become a party to the Guarantee and Collateral Agreement; and

 

WHEREAS, the Additional Grantor has agreed to execute and deliver this Assumption Agreement in order to become a party to the Guarantee and Collateral Agreement;

 

NOW, THEREFORE, IT IS AGREED:

 

1.                                      Guarantee and Collateral Agreement. By executing and delivering this Assumption Agreement, the Additional Grantor, as provided in Section 8.14 of the Guarantee and Collateral Agreement, hereby becomes a party to the Guarantee and Collateral Agreement as a Grantor and as a Guarantor thereunder with the same force and effect as if originally named therein as a Grantor and a Guarantor and, without limiting the generality of the foregoing, hereby expressly assumes all obligations and liabilities of a Grantor and a Guarantor thereunder and transfers and assigns to the Collateral Agent, and hereby grants to the Collateral Agent, for the ratable benefit of the Secured Parties, a security interest in, and a Lien on, its Collateral as collateral security for the prompt and complete payment and performance when due (whether at stated maturity, by acceleration or otherwise) of such Grantor’s Obligations. The information set forth in Annex II-A hereto is hereby added to the information set forth in the Schedules to the Guarantee and Collateral Agreement. The Additional Grantor hereby represents and warrants that each of the representations and warranties contained in Section 4 of the Guarantee and Collateral Agreement is true and correct on and as the date hereof (after giving effect to this Assumption Agreement) as if made on and as of such date.

 

2.                                      GOVERNING LAW. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

 

[remainder of page intentionally left blank]

 

 

IN WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be duly executed and delivered as of the date first above written.

 

 

	
 
    	
[ADDITIONAL   GRANTOR]
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

ANNEX II-A to
  Assumption Agreement

 

Supplement to Schedule 1

 

Supplement to Schedule 2

 

Supplement to Schedule 3

 

Supplement to Schedule 4

 

Supplement to Schedule 5

 

 

EXHIBIT A

 

COPYRIGHT SECURITY AGREEMENT

 

 

EXHIBIT B

 

PATENT SECURITY AGREEMENT

 

 

EXHIBIT C

 

TRADEMARK SECURITY AGREEMENTExhibit 4.44

 

EIGHTH SUPPLEMENTAL INDENTURE

 

between

 

MICHIGAN ELECTRIC TRANSMISSION COMPANY, LLC

 

and

 

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

 

Trustee

 

 

Dated as of March 31, 2016

 

 

Supplementing the First Mortgage Indenture dated as of December 10, 2003, as heretofore supplemented

 

 

THIS INSTRUMENT CONTAINS AFTER-ACQUIRED PROPERTY PROVISIONS

 

Establishing a series of Securities designated 3.90% Senior Secured Notes due 2046

 

 

TABLE OF CONTENTS

 

	
 
    	
Page
    
	
 
    	
 
    
	
ARTICLE ONE   DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
    	
6
    
	
 
    	
 
    
	
ARTICLE TWO   TITLE, FORM AND TERMS AND CONDITIONS OF THE NOTES
    	
12
    
	
 
    	
 
    
	
Section 2.01.   The Notes
    	
12
    
	
Section 2.02.   Payment on the Notes
    	
13
    
	
Section 2.03.   Mandatory Redemption of the Notes
    	
14
    
	
Section 2.04.   Optional Redemption
    	
15
    
	
Section 2.05.   Purchase of Notes
    	
15
    
	
Section 2.06.   Payment upon Event of Default
    	
16
    
	
Section 2.07.   Transfers
    	
16
    
	
 
    	
 
    
	
ARTICLE THREE   ADDITIONAL COVENANTS
    	
16
    
	
 
    	
 
    
	
Section 3.01.   Affirmative Covenants of the Company
    	
16
    
	
Section 3.02.   Negative Covenants of the Company
    	
17
    
	
 
    	
 
    
	
ARTICLE FOUR   ADDITIONAL EVENTS OF DEFAULT; REMEDIES
    	
18
    
	
 
    	
 
    
	
Section 4.01.   Events of Default
    	
18
    
	
Section 4.02.   Acceleration of Maturity
    	
19
    
	
 
    	
 
    
	
ARTICLE FIVE   MISCELLANEOUS PROVISIONS
    	
19
    
	
 
    	
 
    
	
Section 5.01.   Execution of Eighth Supplemental Indenture
    	
19
    
	
Section 5.02.   Effect of Headings
    	
19
    
	
Section 5.03.   Successors and Assigns
    	
20
    
	
Section 5.04.   Severability Clause
    	
20
    
	
Section 5.05.   Benefit of Eighth Supplemental Indenture
    	
20
    
	
Section 5.06.   Execution and Counterparts
    	
20
    
	
Section 5.07.   Conflict with Mortgage Indenture
    	
20
    
	
Section 5.08.   Recitals
    	
20
    
	
Section 5.09.   Governing Law
    	
20
    
	
Section 5.10.   Interpretation of Financial Covenants
    	
21
    

 

Schedule 1                            Recording Information

 

Exhibit A                               Description of Properties

Exhibit B                               Subordination Terms

Exhibit C                               Form of Note

 

 

EIGHTH SUPPLEMENTAL INDENTURE (this “EIGHTH SUPPLEMENTAL INDENTURE”), dated as of March 31, 2016, between MICHIGAN ELECTRIC TRANSMISSION COMPANY, LLC, a limited liability company organized and existing under the laws of the State of Michigan (herein called the “Company”), having its principal office at 27175 Energy Way, Novi, Michigan  48377, and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. (as successor to JPMorgan Chase Bank, N.A.), a national banking association organized under the laws of the United States, as trustee (herein called the “Trustee”), the office of the Trustee at which on the date hereof its corporate trust business is administered being 2 N. LaSalle, Suite 1020, Chicago, Illinois  60602.

 

RECITALS OF THE COMPANY

 

WHEREAS, the Company has heretofore executed and delivered to the Trustee a First Mortgage Indenture dated as of December 10, 2003 (the “Original Mortgage Indenture”), as amended and supplemented by the Third Supplemental Indenture thereto, dated as of November 25, 2008, (together with the Original Mortgage Indenture, the “Mortgage Indenture”) encumbering the real property interests as more particularly described on Exhibit A and Exhibit B attached to the Original Mortgage Indenture, on Exhibit A to the Fourth Supplemental Indenture thereto, Exhibit A to the Fifth Supplemental Indenture thereto, Exhibit A to the Sixth Supplemental Indenture thereto and Exhibit A to the Seventh Supplemental Indenture thereto, and providing for (i) the issuance by the Company from time to time of its bonds, notes or other evidences of indebtedness (in the Mortgage Indenture and herein called the “Debt Securities”) to be issued in one or more series and to provide security for the payment of the principal of and premium (including any Make-Whole Amount), if any, and interest, if any, on the Debt Securities and (ii) the issuance from time to time of Collateral Securities (as defined in the Mortgage Indenture) (together with the Debt Securities, in the Mortgage Indenture and herein called the “Securities”); and

 

WHEREAS, the Company has heretofore executed and delivered the following supplemental indentures, each dated as hereinafter set forth:

 

	
Instrument
    	
 
    	
Date
    
	
 
    	
 
    	
 
    
	
First Supplemental Indenture
    	
 
    	
December 10, 2003
    
	
 
    	
 
    	
 
    
	
Second Supplemental Indenture
    	
 
    	
December 10, 2003
    
	
 
    	
 
    	
 
    
	
Third Supplemental Indenture
    	
 
    	
November 25, 2008
    
	
 
    	
 
    	
 
    
	
Fourth Supplemental Indenture
    	
 
    	
December 11, 2008
    
	
 
    	
 
    	
 
    
	
Fifth Supplemental Indenture
    	
 
    	
April 20, 2010
    
	
 
    	
 
    	
 
    
	
Sixth Supplemental Indenture
    	
 
    	
October 5, 2012
    
	
 
    	
 
    	
 
    
	
Seventh Supplemental Indenture
    	
 
    	
December 4, 2014
    

 

WHEREAS, the Original Mortgage Indenture, the First Supplemental Indenture, the Second Supplemental Indenture, the Fourth Supplemental Indenture, the Fifth Supplemental Indenture, the Sixth Supplemental Indenture and the Seventh Supplemental Indenture listed in the foregoing paragraph were recorded in the offices set forth in Schedule 1 attached hereto; and

 

WHEREAS, there have heretofore been issued under the Indenture the following Securities in the principal amounts as follows:

 

1

 

	
Title
    	
 
    	
Issued
    	
 
    	
Principal Amount
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
5.75% Senior   Secured Notes, due 2015
    	
 
    	
December 10, 2003 (Discharged on   December 10, 2015)
    	
 
    	
$
    	
175,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Senior Secured   Bonds, Collateral Series A
    	
 
    	
December 10, 2003 (Discharged on March 29,   2007)
    	
 
    	
$
    	
35,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
6.63% Senior   Secured Notes due 2014
    	
 
    	
December 11, 2008 (Discharged on   December 18, 2014)
    	
 
    	
$
    	
50,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
5.64% Senior   Secured Notes due 2040
    	
 
    	
May 6, 2010
    	
 
    	
$
    	
50,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.98% Senior   Secured Notes due 2042
    	
 
    	
October 26, 2012
    	
 
    	
$
    	
75,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.19% Senior   Secured Notes due 2044
    	
 
    	
December 17, 2014
    	
 
    	
$
    	
150,000,000
    	
 
    

 

WHEREAS, in addition to the property described in the Original Mortgage Indenture, the Fourth Supplemental Indenture, the Fifth Supplemental Indenture, the Sixth Supplemental Indenture and the Seventh Supplemental Indenture, the Company has acquired certain other property, rights, and interests in property; and

 

WHEREAS, the Company, in the exercise of the power and authority conferred upon and reserved to it under the provisions of the Mortgage Indenture and pursuant to a Company Resolution, has duly determined to make, execute and deliver to the Trustee this Eighth Supplemental Indenture to the Mortgage Indenture as permitted by Sections 201, 301 and 1201 of the Mortgage Indenture in order to establish the form and terms of, and to provide for the creation and issuance of, a series of Securities under the Mortgage Indenture in an aggregate principal amount of $200,000,000 and to amend and supplement the Mortgage Indenture as herein provided; and

 

WHEREAS, all things necessary to make the Notes (as defined herein), when executed by the Company and authenticated and delivered by the Trustee or any Authenticating Agent and issued upon the terms and subject to the conditions hereinafter and in the Mortgage Indenture set forth against payment therefor the valid, binding and legal obligations of the Company and to make this Eighth Supplemental Indenture a valid, binding and legal agreement of the Company, have been done;

 

GRANTING CLAUSES

 

NOW, THEREFORE, THIS EIGHTH SUPPLEMENTAL INDENTURE WITNESSETH that, in order to establish the terms of a series of Securities, and for and in consideration of the premises and of the covenants contained in the Mortgage Indenture and in this Eighth Supplemental Indenture and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, and in order to secure the payment of the principal of and premium, if any, and interest, if any, on, and all other amounts (including, without limitation, fees, expenses and indemnities) in connection with, all Securities from time to time Outstanding and the performance of the covenants therein and herein contained and to declare the terms and conditions on which such Securities are secured, the Company hereby grants, bargains, sells, conveys, assigns, transfers, mortgages, pledges, sets over and confirms to the Trustee, and grants to the Trustee, for itself and for the benefit of the Holders, with power of sale, a

 

2

 

lien upon and a security interest in, the following (subject, however, to the terms and conditions set forth in the Mortgage Indenture and herein):

 

GRANTING CLAUSE FIRST

 

All right, title and interest of the Company, as of the date of the execution and delivery of this Eighth Supplemental Indenture, as originally executed and delivered, in and to all of the following property:

 

(a)           all real property owned in fee and other interests in real property located in the State of Michigan or wherever else situated including, but not limited to, such property as described in Exhibit A and Exhibit B attached to the Original Mortgage Indenture, Exhibit A attached to the Fourth Supplemental Indenture, Exhibit A attached to the Fifth Supplemental Indenture, Exhibit A attached to the Sixth Supplemental Indenture, Exhibit A attached to the Seventh Supplemental Indenture and Exhibit A attached hereto;

 

(b)           the entire easement estate created under and by virtue of the Easement Agreement (as defined in Section 101 of the Original Mortgage Indenture), including any interest in any fee, or greater or lesser title to such easement estate, including, without limitation, the Company’s interest in the parcels of real property described in Exhibit B attached to the Original Mortgage Indenture for purposes of local recording of the Indenture (collectively, the “Easement Land”) and the Improvements (as defined below) that the Company may own or hereafter acquire (whether acquired pursuant to a right or option contained in the Easement Agreement or otherwise) and all credits, deposits, options, privileges and rights of the Company under the Easement Agreement (including all rights of use, occupancy and enjoyment) and under any amendments, supplements, extensions, renewals, restatements, replacements and modifications thereof (including, without limitation, (i) the right to give consents, (ii) the right to receive moneys payable to the Company, (iii) the right to renew or extend the Easement Agreement for a succeeding term or terms, (iv) the right, if any, to purchase the Real Estate (as defined below) and (v) the right to terminate or modify the Easement Agreement); all of the Company’s claims and rights to the payment of damages arising under the Bankruptcy Code (as defined in Section 101 of the Original Mortgage Indenture) from any rejection of the Easement Agreement by the grantor thereunder or any other party (such parcel(s) of real property (including the real property owned in fee and the Easement Land and the Company’s easement estate), together with all of the buildings, improvements, structures and fixtures now or subsequently located thereon (the “Improvements”) are collectively referred to as the “Real Estate”);

 

(c)           the Improvements or any part thereof (whether owned in fee by the Company or held pursuant to the Easement Agreement or otherwise) and all the estate, right, title, claim or demand whatsoever of the Company, in possession or expectancy, in and to the Real Estate or any part thereof;

 

(d)           all rights of way, gores of land, streets, ways, alleys, passages, sewer rights, waters, water courses, water and riparian rights, development rights, air rights, mineral rights and all estates, rights, titles, interests, privileges, licenses, tenements, hereditaments and appurtenances belonging, relating or appertaining to the Real Estate, and any reversions, remainders, rents, issues, profits and revenue thereof and all land lying in the bed of any street, road or avenue, in front of or adjoining the Real Estate to the center line thereof (the assets described in clauses (a), (b) and (c) above and this clause (d) are collectively referred to as the “Real Property”);

 

(e)           all fixtures, towers, pole structures, poles, crossarms, wires, cables, conduits, guys, anchors, transformers, insulators, substations, switching stations, chattels, business machines, machinery, apparatus, equipment, furnishings, fittings and articles of personal property of every kind and

 

3

 

nature whatsoever, and all appurtenances and additions thereto and substitutions or replacements thereof (together with, in each case, attachments, components, parts and accessories) currently owned or subsequently acquired by the Company and now or subsequently attached to, or contained in or used or usable in any way in connection with any operation or letting of the Real Estate, including but without limiting the generality of the foregoing, all screens, awnings, shades, blinds, curtains, draperies, artwork, carpets, rugs, storm doors and windows, furniture and furnishings, heating, electrical, and mechanical equipment, lighting, switchboards, plumbing, ventilating, air conditioning and air-cooling apparatus, refrigerating, and incinerating equipment, escalators, elevators, loading and unloading equipment and systems, stoves, ranges, laundry equipment, cleaning systems (including window cleaning apparatus), telephones, communication systems (including satellite dishes and antennae), televisions, computers, sprinkler systems and other fire prevention and extinguishing apparatus and materials, security systems, motors, engines, machinery, pipes, pumps, tanks, conduits, appliances, fittings and fixtures of every kind and description and all other assets that constitute “Equipment” as defined in the Uniform Commercial Code (all of the foregoing in this clause (e), collectively being referred to as the “Equipment”);

 

(f)            all substitutes and replacements of, and all additions and improvements to, the Real Estate and the Equipment, subsequently acquired by or released to the Company or constructed, assembled or placed by the Company on the Real Estate, immediately upon such acquisition, release, construction, assembling or placement, including, without limitation, any and all building materials whether stored at the Real Estate or offsite, and, in each such case, without any further mortgage, conveyance, assignment or other act by the Company;

 

(g)           all leases, subleases, underlettings, concession agreements, management agreements, licenses and other agreements relating to the use or occupancy of the Real Estate or the Equipment or any part thereof, now existing or subsequently entered into by the Company and whether written or oral and all guarantees of any of the foregoing (collectively, as any of the foregoing may be amended, restated, extended, renewed or modified from time to time, the “Leases”), and all rights of the Company in respect of cash and securities deposited thereunder and the right to receive and collect the revenues, income, rents, issues and profits thereof, together with all other rents, royalties, issues, profits, revenue, income and other benefits arising from the use and enjoyment of the Mortgaged Property (collectively, the “Rents”), including, but not limited to, all rights conferred by Act No. 210 of the Michigan Public Acts of 1953 as amended by Act No. 151 of the Michigan Public Acts of 1966 (MCLA 554.231 et  seq.), and Act No. 228 of the Michigan Public Acts of 1925 as amended by Act No. 55 of the Michigan Public Acts of 1933 (MCLA 554.211 et  seq.);

 

(h)           all trade names, trade marks, logos, copyrights, good will and books and records relating to or used in connection with the operation of the Real Estate or the Equipment or any part thereof, all rights, priorities and privileges relating to intellectual property, whether arising under United States, multinational or foreign laws or otherwise, including copyrights, copyright licenses, patents, patent licenses, trademarks, trademark licenses, technology, know-how and processes, and all rights to sue at law or in equity for any infringement or other impairment thereof, including the right to receive all proceeds and damages therefrom; all general intangibles related to the operation of the Improvements now existing or hereafter arising and all other assets that constitute “Intellectual Property” as defined in the Uniform Commercial Code (all of the foregoing in this clause (h), collectively being referred to as “Intellectual Property”);

 

(i)            all unearned premiums under insurance policies now or subsequently obtained by the Company relating to the Real Estate or Equipment and the Company’s interest in and to all proceeds of any such insurance policies (including title insurance policies) including the right to collect and receive such proceeds, subject to the provisions relating to insurance generally set forth below; and all awards and other compensation, including the interest payable thereon and the right to collect and receive the same,

 

4

 

made to the present or any subsequent owner of the Real Estate or Equipment for the taking by eminent domain, condemnation  or otherwise, of all or any part of the Real Estate or any easement or other right therein;

 

(j)            all contracts from time to time executed by the Company or any Manager or agent on its behalf relating to the ownership, construction, maintenance, repair, operation, occupancy, sale or financing of the Real Estate or Equipment or any part thereof and all agreements relating to the purchase or lease of any portion of the Real Estate or any property which is adjacent or peripheral to the Real Estate, together with the right to exercise such options and all leases of Equipment; all consents, licenses, building permits, certificates of occupancy and other Governmental Approvals (to the extent constituting property) relating to construction, completion, occupancy, use or operation of the Real Estate or any part thereof; and all drawings, plans, specifications and similar or related items relating to the Real Estate (all of the foregoing in this clause (j) being referred to as “Real Estate Contracts”);

 

(k)           any and all moneys now or subsequently on deposit for the payment of real estate taxes or special assessments against the Real Estate or for the payment of premiums on insurance policies covering the foregoing property or otherwise on deposit with or held by the Company as provided in the Indenture;

 

(l)            any right to payment of a monetary obligation, whether or not earned by performance, (i) for property that has been or is to be sold, leased, licensed, assigned or otherwise disposed of, (ii) for services rendered or to be rendered, (iii) for a policy of insurance issued or to be issued, (iv) for a secondary obligation incurred or to be incurred, (v) for energy provided or to be provided, (vi) for the use or hire of a vessel under a charter or other contract, (vii) arising out of the use of a credit or charge card or information contained on or for use with the card, or (viii) as winnings in a lottery or other game of chance operated or sponsored by a state, governmental unit of a state, or person licensed or authorized to operate the game by a state or governmental unit of the state;

 

(m)          all Accounts;

 

(n)           all Chattel Paper;

 

(o)           all Contracts;

 

(p)           all Deposit Accounts;

 

(q)           all Documents;

 

(r)            all General Intangibles;

 

(s)            all Instruments;

 

(t)            all Inventory;

 

(u)           all Investment Property;

 

(v)           all Letter of Credit Rights;

 

(w)          all other property not otherwise described above;

 

(x)           all books and records pertaining to the Mortgaged Property; and

 

5

 

(y)           to the extent not otherwise included, all Proceeds, Supporting Obligations and products of any and all of the foregoing and all collateral security and guarantees given by any Person with respect to any of the foregoing.

 

GRANTING CLAUSE SECOND

 

All right, title and interest of the Company in all property described in the foregoing Granting Clause First, which may be hereafter acquired by the Company, it being the intention of the Company that all such property and all such rights, title and interests acquired by the Company after the date of the execution and delivery of this Eighth Supplemental Indenture, as originally executed and delivered, shall be as fully embraced within and subjected to the Lien hereof as if such property were owned by the Company as of the date of the execution and delivery of this Eighth Supplemental Indenture, as originally executed and delivered;

 

GRANTING CLAUSE THIRD

 

All tenements, hereditaments, servitudes and appurtenances belonging or in any way appertaining to the aforesaid property, with the reversions and remainders thereof;

 

TO HAVE AND TO HOLD all such property, unto the Trustee, its successors in trust and their assigns forever;

 

IN TRUST, for the equal and ratable benefit and security of the Holders from time to time of all Outstanding Securities without any priority of any such Security over any other such Security;

 

PROVIDED, HOWEVER, that the right, title and interest of the Trustee in and to the Mortgaged Property shall cease, terminate and become void in accordance with, and subject to the conditions set forth in, Article Seven or Article Twelve of the Original Mortgage Indenture, and if, thereafter, the principal of and premium, if any, and interest, if any, on, and any other amounts (including, without limitation, fees, expenses and indemnities) in connection with, the Securities shall have been paid to the Holders thereof, or shall have been paid to the Company pursuant to Section 603 of the Original Mortgage Indenture, then and in that case the Indenture shall terminate, and the Trustee shall execute and deliver to the Company such instruments as the Company shall require to evidence such termination; otherwise the Indenture, and the estate and rights hereby granted, shall be and remain in full force and effect;

 

IT IS HEREBY COVENANTED AND AGREED by and between the Company and the Trustee that all the Securities are to be authenticated and delivered, and that the Mortgaged Property is to be held, subject to the further covenants, conditions and trusts set forth in the Indenture; and

 

THE PARTIES HEREBY COVENANT AND AGREE as follows:

 

ARTICLE ONE

 

DEFINITIONS AND OTHER PROVISIONS
 OF GENERAL APPLICATION

 

(a)           Mortgage Indenture Definitions.  Each capitalized term that is used herein and is defined in the Mortgage Indenture shall have the meaning specified in the Mortgage Indenture unless such term is otherwise defined herein; provided, however, that any reference to a “Section” or “Article”

 

6

 

refers to a Section or Article, as the case may be, of this Eighth Supplemental Indenture, unless otherwise expressly stated.

 

(b)           Additional Definitions.  For purposes of this Eighth Supplemental Indenture, except as otherwise expressly provided or unless the context otherwise requires, the following capitalized terms shall have the meanings set forth below:

 

“Capital Stock” means, with respect to any Person, any and all shares, interests, participations or other equivalents (however designated, whether voting or non-voting) in the equity of such Person, including, without limitation, all partnership interests, limited liability company membership or other interests, common stock and preferred stock and any and all warrants, rights or options to purchase any of the foregoing.

 

“Closing Date” has the meaning assigned to that term in Schedule B to the Note Agreement.

 

“Change in Ownership” means and shall be deemed to have occurred if Holdco ceases to own, directly or indirectly, 85% of the Capital Stock of the Company.

 

“Dispose” or “Disposition” means a sale, lease, transfer or other disposition of any assets of the Company.

 

“Easement Agreement” means the Amended and Restated Easement Agreement, dated as of April 29, 2002, between the Company and Consumers, as amended and supplemented to date.

 

“Eighth Supplemental Indenture” has the meaning assigned to that term in the introductory paragraph hereof.

 

“Environmental Laws” means any and all federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, licenses or legally enforceable governmental restrictions relating to pollution and the protection of the environment or the release of any Hazardous Materials into the environment.

 

“Event of Default” has the meaning assigned to that term in Article Four of this Eighth Supplemental Indenture.

 

“FERC” means the United States Federal Energy Regulatory Commission.

 

“Financing Agreements” means the Mortgage Indenture, including this Eighth Supplemental Indenture, the Note Agreement and the Notes.

 

“Hazardous Material” means any and all pollutants, toxic or hazardous wastes or other substances that could be reasonably expected to pose a hazard to health and safety, the removal of which could be reasonably expected to be required or the generation, manufacture, refining, production, processing, treatment, storage, handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of which is restricted, prohibited or penalized by any applicable law including, but not limited to, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum, petroleum products, lead based paint, radon gas or similar restricted, prohibited or penalized substances.

 

“Holdco” means ITC Holdings Corp., a Michigan corporation.

 

7

 

“Indenture” means the Original Mortgage Indenture, as supplemented and modified by any and all indentures supplemental thereto, including this Eighth Supplemental Indenture.

 

“Initial Noteholder” means each Noteholder listed on Schedule A to the Note Agreement purchasing any Notes on the Closing Date.

 

“Institutional Investor” means (a) any Initial Noteholder, (b) any holder of more than $5,000,000 of the aggregate principal amount of the Notes and (c) any bank, trust company, other financial institution, pension plan, investment company, insurance company, or similar financial institution.

 

“Investment” or “Invest” means (a) a purchase or acquisition of, or an investment or reinvestment in, Rate Base Assets or (b) without duplication, the making of a firm, good faith contractual commitment, in the ordinary course of business and not subject to any conditions in the Company’s control, to purchase or acquire, or invest or reinvest in, Rate Base Assets.

 

“Make-Whole Amount” means, with respect to any Note, an amount, as determined by the Company, equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such Note over the amount of such Called Principal; provided that the Make-Whole Amount may in no event be less than zero.  For the purposes of determining any Make-Whole Amount, the following terms have the following meanings:

 

“Called Principal” means, with respect to any Note, the principal of such Note that is to be redeemed pursuant to Section 2.03 or Section 2.04 hereof or has become or is declared to be immediately due and payable pursuant to Section 802 of the Mortgage Indenture, as the context requires.

 

“Discounted Value” means, with respect to the Called Principal of any Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal.

 

“Reinvestment Yield” means, with respect to the Called Principal of any Note, 0.50% over the yield to maturity implied by (i) the yields reported, as of 10:00 a.m. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as “Page PX1” on the Bloomberg Financial Markets Services Screen (or such other display as may replace Page PX1 on the Bloomberg Financial Markets Services Screen) for the most recently issued actively traded on the run U.S. Treasury securities having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date, or (ii) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable (including by way of interpolation), the Treasury Constant Maturity Series Yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for actively traded on the run U.S. Treasury securities having a constant maturity equal to the Remaining Average Life of such Called

 

8

 

Principal as of such Settlement Date.  In the case of each determination under clause (i) or clause (ii), as the case may be, of the preceding sentence, such implied yield will be determined, if necessary, by (a) converting U.S. Treasury bill quotations to bond-equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between (1) the applicable actively traded on the run U.S. Treasury security with the maturity closest to and greater than such Remaining Average Life and (2) the applicable traded actively traded on the run U.S. Treasury security with the maturity closest to and less than such Remaining Average Life.  The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable Note.

 

“Remaining Average Life” means, with respect to any Called Principal, the number of years (calculated to the nearest one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years (calculated to the nearest one-twelfth year) that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment.

 

“Remaining Scheduled Payments” means, with respect to the Called Principal of any Note, all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date; provided that if such Settlement Date is not a date on which interest payments are due to be made under the terms of the Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 2.03 or Section 2.04 hereof or Section 802 of the Mortgage Indenture.

 

“Settlement Date” means, with respect to the Called Principal of any Note, the date on which such Called Principal is to be redeemed pursuant to Section 2.03 or Section 2.04 hereof or has become or is declared to be immediately due and payable pursuant to Section 802 of the Mortgage Indenture, as the context requires.

 

“Material” means material in relation to the business, operations, affairs, financial condition, assets or properties of the Company.

 

“Material Adverse Effect” means a material adverse effect on (a) the business, operations, affairs, financial condition, assets or properties of the Company, (b) the ability of the Company to perform its obligations under any Financing Agreement (including, the timely payments of principal of, or Make-Whole Amount, if any, and interest on, the Notes), (c) the legality, validity or enforceability of the Financing Agreements or (d) the perfection or priority of the Liens purported to be created pursuant to the Indenture or the rights and remedies of the Noteholders with respect thereto.

 

“MISO” means the Midcontinent Independent System Operator, Inc. (formerly known as the Midwest Independent Transmission System Operator, Inc.).

 

“Mortgage Indenture” has the meaning assigned to that term in the first Recital.

 

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“Net Proceeds” means, with respect to any Disposition of assets, the gross proceeds thereof (including any such proceeds received by way of deferred payment, installment, price adjustment or otherwise), whether in cash or otherwise, net of any taxes paid or reasonably estimated to be paid as a result thereof (after taking into account any available tax credits or deductions applicable thereto).

 

“Note” has the meaning assigned to that term in Section 2.01(a) hereof.

 

“Note Agreement” means that certain Note Purchase Agreement, to be dated as of or about April 26, 2016, between the Company and the Initial Noteholders.

 

“Noteholders” means (a) the Initial Noteholders and (b) each subsequent holder of a Note as shown on the register maintained by the Company pursuant to Section 305 of the Mortgage Indenture.

 

“OATT” means, at any given time, the open access transmission tariff of MISO that is applicable to the Company, approved by the FERC and then in effect.

 

“Original Mortgage Indenture” has the meaning assigned to that term in the first Recital.

 

“Rate Base Assets” means assets of the Company which are included in FERC’s determination of the Company’s revenue requirement under the OATT.

 

“Reputable Insurer” means any financially sound and responsible insurance provider permitted to do business in the State of Michigan rated “A-” or better by A.M. Best Company (or if such ratings cease to be published generally for the insurance industry, meeting comparable financial standards then applicable to the insurance industry).

 

“Responsible Officer”, when used with respect to the Company, means any Senior Financial Officer or any vice president of the Company or Holdco and any other officer of the Company or Holdco with responsibility for the administration of the relevant Financing Agreement, or portion thereof.

 

“Senior Financial Officer” means the chief financial officer, principal accounting officer, treasurer, comptroller or any vice president of Holdco.

 

“Subordinated Debt” means unsecured Debt of the Company fully subordinated in right of payment to the Notes and other Senior Secured Debt substantially on the terms set forth in Exhibit B attached hereto.

 

“Subsidiary” means, as to any Person, any Corporation or other business entity in which such Person beneficially owns, directly or indirectly, a majority of the outstanding voting securities thereof.

 

“Transmission Documents” shall have the meaning assigned to such term in the Note Agreement.

 

(c)                                  For purposes of the Notes, pursuant to Section 301(22) of the Mortgage Indenture, the Mortgage Indenture is hereby supplemented as follows:

 

(i)                                     The following Section 116 shall be added immediately following Section 115:

 

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Section 116. Jurisdiction; Waiver of Trial by Jury.

 

(a)                                 The Company irrevocably submits to the non-exclusive jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, the City of New York, over any suit, action or proceeding arising out of or relating to this Indenture.  To the fullest extent permitted by applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

 

(b)                                 The Company consents to process being served by or on behalf of the Trustee or any Holder in any suit, action or proceeding of the nature referred to in Section 116(a) by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, return receipt requested, to it at its address specified in Section 15 of the Note Agreement or at such other address of which the Trustee or any such Holder shall then have been notified pursuant to said Section 15.  The Company agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service upon and personal delivery to it.  Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service.

 

(c)                                  Nothing in this Section 116 shall affect the right of the Trustee or any Holder to serve process in any manner permitted by law, or limit any right that the Trustee or any Holder may have to bring proceedings against the Company in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

 

(d)                                 THE PARTIES HERETO, AND EACH HOLDER OF A SECURITY BY ITS ACCEPTANCE HEREOF, HEREBY WAIVE TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT TO THIS AGREEMENT.

 

(ii)                                  The following provisions shall be added immediately following Section 903(13):

 

(14)                          the Trustee shall not be responsible or liable for any failure or delay in the performance of its obligations under this Indenture arising out of or caused, directly or indirectly, by circumstances beyond its control, including, without limitation, any provision of any law or regulation or any act of any governmental authority; acts of God; earthquakes; fire; flood; terrorism; wars and other military disturbances; sabotage; epidemics; riots; interruptions; loss or malfunctions of utilities, computer (hardware or software) or communication services (it being understood that the Trustee shall maintain a business continuity plan and otherwise use reasonable efforts which are consistent with accepted practices in the banking industry to avoid and mitigate the effects of such occurrences and to resume performance as soon as practicable under the circumstances); accidents; labor disputes; acts of civil or military authority and governmental action; and

 

(15)                          in no event shall the Trustee be responsible or liable for special, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action.

 

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(iii)                               The following sentence shall be added immediately following the last sentence of Section 1004:

 

Delivery of such information, documents and other reports to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute actual or constructive knowledge or notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officer’s Certificates).

 

ARTICLE TWO

 

TITLE, FORM AND TERMS AND CONDITIONS OF THE NOTES

 

Section 2.01.  The Notes.

 

(a)                                 The Securities of this series to be issued under the Mortgage Indenture pursuant to this Eighth Supplemental Indenture shall be designated as “3.90% Senior Secured Notes due 2046” (the “Notes”) and shall be Debt Securities issued under the Indenture.

 

(b)                                 The Trustee shall authenticate and deliver the Notes for original issue on the Closing Date in the aggregate principal amount of $200,000,000, upon a Company Order for the authentication and delivery thereof pursuant to Section 401 of the Mortgage Indenture.

 

(c)                                  Interest on the Notes shall be payable to the Persons in whose names such Notes are registered at the close of business on the Regular Record Date for such interest (as specified in Section 2.01(e) below), except as otherwise expressly provided in the form of such Notes attached hereto as Exhibit C.

 

(d)                                 The Notes shall mature and the principal thereof shall be due and payable together with all accrued and unpaid interest thereon on April 26, 2046.

 

(e)                                  The Notes shall bear interest at the rate of 3.90% per annum; provided that, to the extent permitted by law, any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest and any overdue payment of any Make-Whole Amount shall bear interest at a rate per annum from time to time equal to the greater of (i) 5.90% and (ii) 2.0% over the rate of interest publicly announced by JPMorgan Chase Bank, N.A. from time to time in New York, New York as its “base” or “prime” rate.  Interest shall accrue on the Notes from the Closing Date, or the most recent date to which interest has been paid or duly provided for.  The Interest Payment Dates for the Notes shall be April 26 and October 26 in each year, commencing October 26, 2016, and the Regular Record Dates with respect to the Interest Payment Dates for the Notes shall be the 15th calendar day preceding each Interest Payment Date (whether or not a Business Day); provided, however, that interest payable at Maturity will be payable to the Noteholder to whom principal is payable.

 

(f)                                   Subject to Section 2.02 hereof, the office or agency of the Trustee in New York, New York, which as of the date hereof is located at c/o The Bank of New York Mellon, Trust Services Window, 101 Barclay Street, New York, New York 10286, shall be the place at which the principal of and Make-Whole Amount, if any, and interest on the Notes shall be payable.  The office or agency of the Trustee in New York, New York, which as of the date hereof is located at c/o The Bank of New York Mellon, Trust Services Window, 101 Barclay Street, New York, New York  10286, shall be the place at which registration of transfer of the Notes may be effected; and The Bank of New York Mellon Trust Company, N.A. shall be the Security Registrar and the Paying Agent for the Notes; provided, however,

 

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that the Company reserves the right to designate, by one or more Officer’s Certificates, its principal office in Novi, Michigan as any such place or itself as the Security Registrar; provided, however, that there shall be only a single Security Registrar for the Notes.

 

(g)                                  The Notes shall be issuable in registered form in denominations of at least $250,000 or any integral multiple thereof.

 

(h)                                 The Notes shall not be defeasible pursuant to Section 702 of the Mortgage Indenture and such Section 702 of the Mortgage Indenture shall not apply to the Notes.

 

(i)                                     The Notes shall have such other terms and provisions as are provided in the form thereof attached hereto as Exhibit C, and shall be issued in substantially such form.

 

Section 2.02.  Payment on the Notes.

 

(a)                                 Subject to Section 2.02(b) hereof, payments of principal, Make-Whole Amount, if any, and interest becoming due and payable on the Notes shall be made at the Place of Payment designated in Section 2.01(f) hereof or such place as the Company may at any time, by notice, specify to each Noteholder, so long as such Place of Payment shall be either the principal office of the Company or the principal office of a bank or trust company in New York, New York.

 

(b)                                 So long as any Initial Noteholder or its nominee shall be a Noteholder, and notwithstanding anything contained in the Mortgage Indenture, Section 2.02(a) hereof or in such Note to the contrary, the Company will pay all sums becoming due on such Note for principal, Make-Whole Amount, if any, and interest by the method and at the address specified for such purpose below such Initial Noteholder’s name in Schedule A to the Note Agreement, or by such other method or at such other address as such Initial Noteholder shall have from time to time specified to the Company and the Trustee in writing for such purpose in accordance with the Note Agreement, without the presentation or surrender of such Note or the making of any notation thereon, except that concurrently with or reasonably promptly after payment or redemption in full of any Note, such Initial Noteholder shall surrender such Note for cancellation to the Company at its principal office or at the Place of Payment most recently designated by the Company pursuant to Section 2.02(a) hereof.  Prior to any sale or other disposition of any Note held by such Initial Noteholder or its nominee such Initial Noteholder will, at its election, either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such Note to the Company in exchange for a new Note or Notes pursuant to Section 305 of the Indenture; provided, that a transfer by endorsement shall not constitute a registration of transfer for purposes of the Indenture and the Trustee and any agent of the Trustee shall be entitled to the protections of Section 308 of the Indenture with respect to any Note, the transfer of which has not been so registered.  The Company will afford the benefits of this Section 2.02(b) to any Institutional Investor that is the direct or indirect transferee of any Note purchased by such Initial Noteholder under the Indenture. The Company agrees and acknowledges that the Trustee shall not be liable for any Noteholder’s failure to perform its obligations under this Section 2.02(b).  Each Initial Noteholder and any such Institutional Investor by its purchase of its Note agrees to indemnify the Trustee for, and to hold it harmless against, any loss, liability or expense incurred without negligence, willful misconduct or bad faith on its part, arising out of or in connection with such Noteholder’s or Institutional Investor’s failure to comply with the provisions of this Section 2.02(b), including the costs and expenses of defending itself against any claim or liability in connection therewith, such indemnity to survive the payment of such Notes and the resignation or removal of the Trustee.

 

(c)                                  Notwithstanding anything to the contrary in Section 113 of the Mortgage Indenture, if the Stated Maturity or any Redemption Date of the Notes shall not be a Business Day at any

 

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Place of Payment, then (notwithstanding any other provision of the Mortgage Indenture or this Eighth Supplemental Indenture) payment of interest on or principal (and premium, if any) of the Notes due at the Stated Maturity or on any Redemption Date thereof need not be made at such Place of Payment on such date, but may be made on the next succeeding Business Day at such Place of Payment with the same force and effect as if made on the Stated Maturity or on any Redemption Date thereof, provided that interest shall accrue on the outstanding principal amount of the Notes due at the Stated Maturity or on any Redemption Date thereof at the rate set forth in the Notes until the date of actual payment.

 

Section 2.03.  Mandatory Redemption of the Notes.

 

In addition to the mandatory redemption required by Section 501(a) of the Mortgage Indenture, which Section 501(a) shall apply to the Notes, in the event that any one or more Dispositions during any consecutive 12-month period (except, subject to compliance with Section 610 of the Mortgage Indenture, Dispositions in the ordinary course of business of obsolete or worn out Property and real estate interests not needed by the Company for its Transmission System or for the conduct of its business and Dispositions of assets that would be permitted under Article Eleven of the Mortgage Indenture) yield Net Proceeds in excess of $10,000,000, in the aggregate, the Net Proceeds of such Disposition or Dispositions shall be used for the mandatory redemption of the Notes, and/or the redemption or prepayment of other Senior Secured Debt in accordance with its terms, on a date which is no more than nine months following a Disposition that, when aggregated with any other Dispositions, requires compliance with this Section 2.03 unless (x) during the nine-month period immediately preceding the date of such Disposition, the Company Invested in any Rate Base Assets in which case an amount of such Net Proceeds equal to the excess, if any, of (A) the total aggregate amount of all such Investments made during such preceding nine-month period (excluding, however, the amount of any Investments made pursuant to clause (b) of the definition of “Investment” that were not expended for Rate Base Assets during such nine-month period) over (B) the aggregate amount of Debt incurred by the Company (which, with respect to any Debt incurred under any permitted credit facility of a revolving nature, shall be calculated on a net basis after taking into account any borrowings, prepayments, repayments, reborrowings or other extensions of credit made by or in favor of the Company thereunder), in each case, during such preceding nine-month period, need not be applied to such redemption or prepayment, as the case may be, or (y) during the nine-month period following the date of such Disposition, the Company shall Invest in Rate Base Assets, in which case an amount of such Net Proceeds so Invested during such following nine-month period need not be applied to such redemption or prepayment, as the case may be; provided, however, that in the event that any such amounts referred to in this clause (y) Invested pursuant to clause (b) of the definition of “Investment” are not expended for Rate Base Assets within a period of six months from the end of such following nine-month period, any such amounts not so expended shall be used for the mandatory redemption of the Notes, and/or the redemption or prepayment of other Senior Secured Debt in accordance with its terms, on a date not later than the last day of such six month period.  Any redemption of the Notes pursuant to this Section 2.03 shall be made (i) at a redemption price equal to the principal amount of the Notes being redeemed and shall be accompanied by payment of accrued and unpaid interest on the principal amount of the Notes so redeemed to the redemption date and a Make-Whole Amount and (ii) in accordance with the procedures for optional redemption set forth in Section 2.04(c) hereof.  Notwithstanding anything to the contrary in this Section 2.03, any amounts utilized pursuant to clauses (x) or (y) above to reduce the amount of Net Proceeds required to be applied to redemption of the Notes and/or redemption or prepayment of other Senior Secured Debt in accordance with its terms may be utilized no more than once with respect to the Net Proceeds of any one or more Dispositions occurring in any consecutive twelve month period.

 

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Section 2.04.  Optional Redemption.

 

(a)                                 Pursuant to Section 501(b) of the Mortgage Indenture, the Notes may be redeemed at the option of Company, in whole or in part, at any time or from time to time at a redemption price equal to the principal amount of such Notes plus the Make-Whole Amount plus accrued and unpaid interest thereon to the redemption date; provided, however, that if the Notes are redeemed in part, the Notes shall not be redeemed in an amount less than $5,000,000 of the aggregate principal amount of the Notes then Outstanding.

 

(b)                                 Pursuant to Section 501(b) of the Mortgage Indenture, the Notes may be redeemed at the option of the Company, in whole, on or after October 26, 2045 at a redemption price equal to the principal amount of such Notes plus accrued and unpaid interest thereon to the redemption date.

 

(c)                                  Notwithstanding anything to the contrary in Article Five of the Mortgage Indenture, the redemption of the Notes shall take place in accordance with the procedures and requirements set forth in this Section 2.04(c), without prejudice to the requirements of Section 502 of the Mortgage Indenture (which shall for purposes of this Eighth Supplemental Indenture also be applicable to a redemption under Section 2.03 hereof) and Sections 505 through 507 of the Mortgage Indenture.  The Company (or the Trustee, if so requested pursuant to Section 504 of the Mortgage Indenture) shall give each Noteholder written notice of each optional redemption under this Section 2.04, or a mandatory redemption under Section 2.03 hereof, as the case may be, not less than thirty (30) days and not more than sixty (60) days prior to the date fixed for such redemption.  Each such notice shall specify such date, the aggregate principal amount of the Notes to be redeemed on such date, the principal amount of each Note held by such Noteholder to be redeemed (determined in accordance with Section 2.04(d) hereof) and the interest to be paid on the redemption date with respect to such principal amount being redeemed, and shall be accompanied by a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount, if applicable, due in connection with such redemption (calculated as if the date of such notice were the date of the redemption), setting forth the details of such computation.  Two (2) Business Days prior to such redemption, the Company shall deliver to each Noteholder and the Trustee a certificate of a Senior Financial Officer specifying the calculation of such Make-Whole Amount, if applicable, as of the specified redemption date.  The Trustee shall have no responsibility for such calculation.  From and after the date of such redemption, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue.

 

(d)                                 Notwithstanding anything to the contrary in Article Five of the Mortgage Indenture, in the case of each partial redemption of the Notes pursuant to Section 2.04(c) hereof, the principal amount of the Notes to be redeemed shall be allocated by the Trustee among all of the Notes at the time Outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofor called for redemption.

 

Section 2.05.  Purchase of Notes.

 

Except as may be agreed to by a Noteholder or Noteholders in connection with an offer made to all Noteholders on the same terms and conditions, the Company shall not and shall not permit any Affiliate to purchase, redeem or otherwise acquire, directly or indirectly, any of the Outstanding Notes, except upon the payment or redemption of the Notes in accordance with the terms of the Indenture.  The Company will promptly cause the Trustee to cancel all Notes acquired by it or any Affiliate pursuant to any payment, redemption or purchase of Notes pursuant to any provision of the Indenture and no Notes may be issued in substitution or exchange for any such Notes.

 

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Section 2.06.  Payment upon Event of Default.

 

Upon any Notes becoming due and payable under Section 802 of the Indenture, whether automatically or by declaration, such Notes will forthwith mature and the entire unpaid principal amount of such Notes, plus (x) all accrued and unpaid interest thereon (including, without limitation, interest accrued thereon at the applicable rate for overdue payments) and (y) the Make-Whole Amount determined in respect of such principal amount (to the full extent permitted by applicable Law), shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.  The Company acknowledges that each holder of a Note has the right to maintain its investment in the Notes free from repayment by the Company (except as herein specifically provided for) and that the provision for payment of a Make-Whole Amount by the Company in the event that the Notes have become due and payable under Section 802 of the Indenture, whether automatically or by declaration, as a result of an Event of Default, is intended to provide compensation for the deprivation of such right under such circumstances.

 

Section 2.07.  Transfers.

 

In registering the transfer of any Note in accordance with Section 305 of the Mortgage Indenture, the Security Registrar and the Trustee shall have no responsibility to monitor securities law compliance in connection with any such transfer.

 

ARTICLE THREE

 

ADDITIONAL COVENANTS

 

Section 3.01.  Affirmative Covenants of the Company.

 

For purposes of the Notes, pursuant to Section 301(20) of the Mortgage Indenture, Article Six of the Mortgage Indenture is hereby supplemented by (i) deeming each reference to the phrase “Material Adverse Effect” in Article Six of the Mortgage Indenture to be a reference to the phrase “Material Adverse Effect” as defined in this Eighth Supplemental Indenture and (ii) incorporating therein the following additional affirmative covenants which the Company shall observe solely for the benefit of the Noteholders for so long as any Note is Outstanding:

 

(a)                                 Maintenance and Operation of Properties.  The Company shall maintain and preserve, develop, and operate in substantial conformity with all Transmission Documents, applicable Law, Good Utility Practices, and all material Governmental Approvals, all elements of the Transmission System which are used or necessary in the conduct of its businesses in good working order and condition, ordinary wear and tear excepted, except where the failure to so maintain and preserve, develop and operate the Transmission System would not reasonably be expected to have a Material Adverse Effect.

 

(b)                                 Maintenance of Insurance.  At any time and from time to time, the Company shall provide or cause to be provided, for itself and its assets (including the Transmission System and related equipment), insurance with Reputable Insurers (or self-insurance, if adequate reserves are maintained with respect thereto) in amounts and within the limits and coverages (including deductibles and co-insurance) customarily obtained for comparable businesses under similar circumstances.

 

(c)                                  Use of Proceeds.  The Company shall apply the net proceeds from the issuance and sale of the Notes to (i) refinance existing indebtedness, partially fund capital expenditures or for general corporate purposes, and (ii) pay reasonable fees and expenses associated with the sale of the Notes.

 

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(d)                                 Compliance with Laws and Regulations.  The Company shall comply with all Laws (including Environmental Laws) to which its Property or assets may be subject, except where failure to comply would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.  In addition, the Company shall immediately pay or cause to be paid when due all costs and expenses incurred in such compliance, except to the extent that the same is being contested in good faith by the Company through appropriate means under circumstances where none of the Mortgaged Property or the Liens thereon will be endangered.

 

(e)                                  Real Estate Filings.  To the extent that any filing required to perfect any security interest in real property or fixtures constituting Mortgaged Property is not made on or prior to the Closing Date, the Company shall undertake to present all such documents for filing with the appropriate registers of deeds as soon as practicable after the Closing Date, but in no event shall any such presentation for filing take place more than five (5) Business Days after the Closing Date; provided that the Company shall confirm by an Officer’s Certificate delivered to the Trustee (if not delivered prior to the Closing Date) within six (6) weeks after the Closing Date that each such document has been recorded with the applicable registers of deeds and the security interests created or purported to be created in real property or fixtures by such documents have been fully perfected by recording in the land records, except for documents to be recorded in the registers of deeds in the Counties of Oakland, Kent, Calhoun and Genesee in the State of Michigan, in which case the Company shall confirm by an Officer’s Certificate delivered to the Trustee (if not delivered prior to the Closing Date) no more than three (3) months after the Closing Date with respect to the County of Kent, and no more than five (5) months after the Closing Date with respect to the Counties of Oakland, Calhoun and Genesee, that such documents have been so recorded.

 

(f)                                   Delivery of Opinions of Counsel.  The Company shall deliver, or cause to be delivered, to the Trustee the opinions of counsel required pursuant to Section 4.4(a) of the Note Agreement.

 

Section 3.02.  Negative Covenants of the Company.

 

For purposes of the Notes, pursuant to Section 301(20) of the Mortgage Indenture, Article Six of the Mortgage Indenture is hereby supplemented by incorporating therein the following negative covenants which the Company shall observe solely for the benefit of the Noteholders for so long as any Note is Outstanding:

 

(a)                                 Limitation on Lines of Business.  As of the Closing Date, the Company is in the business of owning electric transmission facilities and providing electric transmission service over such facilities.  From the Closing Date onward, the Company shall not engage in any business, if as a result, the general nature of the business engaged in by the Company taken as a whole would be substantially changed from the general nature of the business the Company is engaged in on the Closing Date.

 

(b)                                 Amendments to Exhibit B Hereto. The Company shall not make any amendments or changes to the subordination terms and conditions set forth in Exhibit B hereto that adversely affect the Noteholders without the prior consent of the Noteholders of all the Outstanding Notes.

 

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ARTICLE FOUR

 

ADDITIONAL EVENTS OF DEFAULT; REMEDIES

 

Section 4.01.  Events of Default.

 

For purposes of the Notes, pursuant to Section 301(21) of the Mortgage Indenture, Section 801 of the Mortgage Indenture shall be supplemented to include as “Events of Default” thereunder the occurrence of any of the following events (each such event, together with those “Events of Default” in Section 801 of the Mortgage Indenture, an “Event of Default”):

 

(a)                                 Material Covenants.  The Company shall fail to perform or observe any covenant set forth in Section 3.02 hereof or its obligation to provide notice to the Noteholders under Section 7.1(b) of the Note Agreement and such failure is not cured within thirty (30) days after earlier to occur of (i) a Responsible Officer of the Company obtaining actual knowledge of such failure and (ii) the Company receiving written notice of such failure from the Trustee or any Noteholder in accordance with the terms of the Indenture or the Note Agreement;

 

(b)                                 Other Covenants.  The Company shall fail to perform or observe any of its obligations or covenants (other than a failure to comply with the events that constitute an Event of Default under Section 4.01(a) hereof or under Section 801(a), Section 801(b) or Section 801(e) of the Mortgage Indenture) contained in any of the Financing Agreements, including Section 7 of the Note Agreement (or in any modification or supplement thereto), and such failure is not cured within sixty (60) days after the earlier to occur of (i) a Responsible Officer of the Company obtaining actual knowledge of such failure and (ii) the Company receiving written notice of such failure from the Trustee or any Noteholder in accordance with the terms of the Mortgage Indenture or the Note Agreement;

 

(c)                                  Representations.  Any representation, warranty or certification by the Company in any of the Financing Agreements or in any certificate furnished to the Trustee or any Noteholder pursuant to the provisions of this Eighth Supplemental Indenture or any other Financing Agreement shall prove to have been false in any Material respect as of the time made or furnished, as the case may be;

 

(d)                                 Debt.

 

(i)                                     The Company shall be in Default in the payment of any principal, premium, including any make-whole amount, if any, or interest on any Debt (other than Subordinated Debt) in the aggregate principal amount of $30,000,000 or more beyond the expiration of any applicable grace or cure period relating thereto;

 

(ii)                                  The Company shall be in Default in the performance or compliance with any term (other than those referred to in Section 4.01(d)(i) hereof) of any agreement or instrument evidencing any Debt (other than Subordinated Debt) in the aggregate principal amount of $30,000,000 or more or any other document relating thereto or any condition exists and, as a consequence, such Debt has become or has been declared (or the holder or beneficiary of such Debt or a trustee or agent on behalf of such holder or beneficiary is entitled to declare such Debt to be) due and payable before its stated maturity or before its regularly scheduled dates of payment; or

 

(iii)                               As a consequence of the occurrence or continuation of any event or condition (other than the passage of time or the right of the holder of Debt to convert such Debt into equity interests), other than as provided in Section 2.03 or Section 2.04 hereof or Section

 

18

 

501(a) of the Mortgage Indenture, (x) the Company shall have become obligated to purchase or repay any Debt before its regularly scheduled maturity date in the aggregate principal amount of $30,000,000 or more or (y) one or more Persons have the right to require such Debt to be purchased or repaid;

 

(e)                                  Judgments.  Any judgment or judgments for the payment of money in excess of $30,000,000 (or its equivalent in any other currency) in the aggregate by the Company, which is, or are, not covered by insurance, shall be rendered by one or more courts, administrative tribunals or other bodies having jurisdiction over the Company and the same shall not be discharged (or provision shall not be made for such discharge), bonded or a stay of execution thereof shall not be procured, within 60 days from the date of entry thereof and the Company shall not, within said period of 60 days, or such longer period during which execution of the same shall have been stayed, appeal therefrom and cause the execution thereof to be stayed during such appeal; or

 

(f)                                   Change in Ownership.  A Change in Ownership shall occur.

 

Section 4.02.  Acceleration of Maturity.

 

Pursuant to Section 301(21) of the Mortgage Indenture, in addition to the provisions set forth in Section 802 of the Mortgage Indenture, if an Event of Default arising from the failure to pay principal of, or interest on, or any Make-Whole Amount relating to the Notes shall have occurred and be continuing, then in every such case each Holder of Notes may declare the principal amount of the Notes held by it to be due and payable immediately, by a notice in writing to the Company and to the Trustee, and upon receipt by the Company or the Trustee of such notice of such declaration, such principal amount, together with Make-Whole Amount and accrued interest, if any, thereon (including, without limitation, interest accrued thereon at the applicable rate for overdue payments), shall become immediately due and payable (subject to Section 821 of the Indenture).

 

ARTICLE FIVE

 

MISCELLANEOUS PROVISIONS

 

Section 5.01.  Execution of Eighth Supplemental Indenture.

 

Except as expressly amended and supplemented hereby, the Mortgage Indenture shall continue in full force and effect in accordance with the provisions thereof and the Mortgage Indenture is in all respects hereby ratified and confirmed.  This Eighth Supplemental Indenture and all of its provisions shall be deemed a part of the Mortgage Indenture in the manner and to the extent herein and therein provided.  The Notes executed, authenticated and delivered under this Eighth Supplemental Indenture constitute a series of Securities and shall not be considered to be a part of a series of Securities executed, authenticated and delivered under any other supplemental indenture entered into pursuant to the Mortgage Indenture.

 

Section 5.02.  Effect of Headings.

 

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

 

19

 

Section 5.03.  Successors and Assigns.

 

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

 

Section 5.04.  Severability Clause.

 

In case any provision in this Eighth Supplemental Indenture or in the 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 5.05.  Benefit of Eighth Supplemental Indenture.

 

Except as otherwise provided in the Mortgage Indenture, nothing in this Eighth Supplemental Indenture or in the Notes, express or implied, shall give to any person, other than the parties hereto and their successors hereunder and the Noteholders, any benefit or any legal or equitable right, remedy or claim under this Eighth Supplemental Indenture.

 

Section 5.06.  Execution and Counterparts.

 

This Eighth 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.  Any such counterpart, as recorded or filed in any jurisdiction, may omit such portions of Exhibit A hereto as shall not describe or refer to properties located in such jurisdiction.  The exchange of copies of this Eighth Supplemental Indenture and of signature pages by facsimile or electronic format (i.e., “pdf” or “tif”) transmission shall constitute effective execution and delivery of this Eighth Supplemental Indenture as to the parties hereto and may be used in lieu of the original Eighth Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or electronic format (i.e., “pdf” or “tif”) shall be deemed to be their original signatures for all purposes.

 

Section 5.07.  Conflict with Mortgage Indenture.

 

If any provision hereof limits, qualifies or conflicts with another provision of the Mortgage Indenture, such provision of this Eighth Supplemental Indenture shall control, insofar as the rights between the Company and the Noteholders are concerned.

 

Section 5.08.  Recitals.

 

The recitals and statements contained herein shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness and makes no representations as to the validity or sufficiency of this Eighth Supplemental Indenture.

 

Section 5.09.  Governing Law.

 

This Eighth Supplemental Indenture shall be governed by and construed in accordance with the law of the State of New York, except that (i) to the extent that the Trust Indenture Act shall be applicable, this Eighth Supplemental Indenture shall be governed by and construed in accordance with the Trust Indenture Act and (ii) if the law of any jurisdiction wherein any portion of the Mortgaged Property that is Real Property is located shall govern the creation of a mortgage lien on and security interest in, or perfection, priority or enforcement of the Lien of the Indenture or exercise of remedies with respect to,

 

20

 

such portion of the Mortgaged Property, this Eighth Supplemental Indenture shall be governed by and construed in accordance with the law of such jurisdiction to the extent mandatory.

 

Section 5.10.  Interpretation of Financial Covenants.

 

For purposes of determining compliance with the financial covenants set out in the Indenture, any election by the Company to measure an item of Debt using fair value (as permitted by Accounting Standards Codification 825-10-25 (previously referred to as Statement of Financial Accounting Standards No. 159) or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) shall be disregarded and such determination shall be made by valuing Debt at 100% of the outstanding principal amount thereof (except to the extent such Debt was issued at a discount or premium in which case the value of such Debt shall be valued at 100% of the outstanding principal amount thereof, less any unamortized discount or plus any unamortized premium, as the case may be).

 

 

Drafted by:

 

Elizabeth B. Hardin

Milbank, Tweed, Hadley & McCloy LLP

28 Liberty Street

New York, NY 10005

 

Return to:

 

Gregory M. Wright

Dykema Gossett PLLC

10 South Wacker Drive

Suite 2300

Chicago, IL  60606

 

21

 

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

 

	
 
    	
MICHIGAN ELECTRIC TRANSMISSION COMPANY, LLC, a Michigan limited   liability company
    
	
 
    	
 
    	
 
    
	
 
    	
By: ITC Holdings Corp.,   its sole manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Rejji P. Hayes
    
	
 
    	
 
    	
Name: Rejji P. Hayes
    
	
 
    	
 
    	
Title:  Senior Vice President and Chief Financial   Officer
    

 

Signature Page to

Eighth Supplemental Indenture

 

 

ACKNOWLEDGMENT

 

	
STATE OF MICHIGAN
    	
)
    
	
 
    	
) ss.
    
	
COUNTY OF OAKLAND
    	
)
    

 

On the 31st day of March, 2016, before me, the undersigned notary public, personally came Rejji P. Hayes, to me known to be Senior Vice President and Chief Financial Officer of ITC Holdings Corp., a corporation organized under the laws of the State of Michigan, the sole manager of Michigan Electric Transmission Company, LLC, a limited liability company organized under the laws of the State of Michigan, and acknowledged that he executed the foregoing instrument in his authorized capacity, and that by his signature on the instrument he, or the entity upon behalf of which he acted, executed the instrument.

 

 

	
 
    	
/s/ Sandra K. Biggar
    
	
 
    	
 
    
	
By:  
    	
Sandra K. Biggar,   Notary Public
    
	
 
    	
Wayne County, Michigan
    
	
 
    	
My Commission Expires   June 21, 2021
    
	
 
    	
Acting in the County of   Oakland
    

 

 

	
 
    	
THE BANK OF NEW YORK   MELLON TRUST COMPANY, N.A., as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Valère D. Boyd
    
	
 
    	
 
    	
Name:  Valère   D. Boyd
    
	
 
    	
 
    	
Title:    Vice   President
    

 

Signature Page to

Eighth Supplemental Indenture

 

 

ACKNOWLEDGMENT

 

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 

 

State of California

County of Los Angeles        )

 

On March 31, 2016 before me,  Marvin G. Cuenca, Notary Public

                                                   (insert name and title of the officer)

personally appeared Valere D. Boyd, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

 

 

	
 
    	
 
    	

    
	
WITNESS my hand and official seal
    	
 
    
	
 
    	
 
    	
 
    
	
Signature
    	
/s/ Marvin G. Cuenca
    	
 
    	
(Seal)
    

 

 

Schedule 1

 

The recording information for the Original Mortgage Indenture, the First Supplemental Indenture, the Second Supplemental Indenture, the Fourth Supplemental Indenture, the Fifth Supplemental Indenture, the Sixth Supplemental Indenture and the Seventh Supplemental Indenture, each recorded in the Offices of the Register of Deeds in the Michigan counties as indicated, is as follows:

 

	
County
    	
 
    	
Original Mortgage
   Indenture
    	
 
    	
First Supplemental
   Indenture
    	
 
    	
Second Supplemental
   Indenture
    	
 
    	
Fourth Supplemental
   Indenture
    	
 
    	
Fifth Supplemental
   Indenture
    	
 
    	
Sixth Supplemental
   Indenture
    	
 
    	
Seventh Supplemental
   Indenture
    
	
Alcona
    	
 
    	
Instrument No.
   200300006636;
   L395, P141
    	
 
    	
Instrument No.
   200300006637;
   L395, P270
    	
 
    	
Instrument No.
   200300006638;
   L395, P336
    	
 
    	
Instrument No.
   200800003865;
   L457, P1036
    	
 
    	
L470, P107
    	
 
    	
*
    	
 
    	
201400003993
   L512, P1-84
    
	
Allegan
    	
 
    	
L2609, P654
    	
 
    	
L2610, P1
    	
 
    	
L2610, P194
    	
 
    	
Instrument No.
   2008023175
   L3281, P602
    	
 
    	
L3414, P1
    	
 
    	
*
    	
 
    	
Instrument No.
   2014021720
   L3889, P1
    
	
Alpena
    	
 
    	
L431, P340
    	
 
    	
L431, P341
    	
 
    	
L431, P342
    	
 
    	
Instrument No.
   03078018
   L468, P684
    	
 
    	
L476, P998
    	
 
    	
*
    	
 
    	
L505, P248
    
	
Antrim
    	
 
    	
L00697, P0280
    	
 
    	
L00697, P0404
    	
 
    	
L00697, P0465
    	
 
    	
Instrument No. 200800010254
   L786, P2867
    	
 
    	
L803, P942
    	
 
    	
*
    	
 
    	
L854, P1009
    
	
Arenac
    	
 
    	
L423, P301
    	
 
    	
L423, P444
    	
 
    	
L423, P524
    	
 
    	
L541, P212
    	
 
    	
L561, P725
    	
 
    	
*
    	
 
    	
Instrument No.
   201404104
    
	
Barry
    	
 
    	
Instrument No.
   1120018
    	
 
    	
Instrument No.
   1120019
    	
 
    	
Instrument No.
   1120020
    	
 
    	
Instrument No.
   20081215-0011782
    	
 
    	
Instrument No.
   201004230004212
    	
 
    	
Instrument No.
   2012-006335
    	
 
    	
Instrument No.
   2014-011622
    
	
Bay
    	
 
    	
L2156, P585
    	
 
    	
L2157, P249
    	
 
    	
L2157, P004
    	
 
    	
L2647, P508
    	
 
    	
L2734, P912
    	
 
    	
L2912, P194
    	
 
    	
L3065, P44
    
	
Branch
    	
 
    	
L01000, P0600
    	
 
    	
L01000, P0737
    	
 
    	
L01000, P0811
    	
 
    	
Instrument No.
   2008-08600
    	
 
    	
Instrument No.
   2010-02696
    	
 
    	
Instrument No.
   2012-07163
    	
 
    	
Instrument No.
   2014-07400
    
	
Calhoun
    	
 
    	
L2765, P587
    	
 
    	
L2765, P829
    	
 
    	
L2766, P1
    	
 
    	
L3421, P892
    	
 
    	
L3538, P553
    	
 
    	
L3745, P545
    	
 
    	
L3935, P365
    
	
Charlevoix
    	
 
    	
L591, P042
    	
 
    	
L591, P156
    	
 
    	
L591, P207
    	
 
    	
L0869, P0414
    	
 
    	
L0919, P0518
    	
 
    	
L1008, P0001
    	
 
    	
L1082, P336
    
	
Cheboygan
    	
 
    	
L925, P483
    	
 
    	
L925, P637
    	
 
    	
L925, P727
    	
 
    	
L1112, P918
    	
 
    	
L1149, P529
    	
 
    	
L1215, P350
    	
 
    	
L1272, P432
    
	
Clare
    	
 
    	
L890, P333
    	
 
    	
L890, P443
    	
 
    	
L890, P490
    	
 
    	
Instrument No.
   200800009719
   L1098, P156
    	
 
    	
L1139, P464
    	
 
    	
*
    	
 
    	
201400008992
   L1274, P670-753
    
	
Clinton
    	
 
    	
Instrument No.
   5048529
    	
 
    	
Instrument No.
   5048530
    	
 
    	
Instrument No.
   5048531
    	
 
    	
Instrument No.
   5138207
    	
 
    	
Instrument No.
   5156341
    	
 
    	
Instrument No.
   5191159
    	
 
    	
Instrument No.
   5222414
    
	
Crawford
    	
 
    	
L663, P4
    	
 
    	
L663, P115
    	
 
    	
L663, P163
    	
 
    	
L694, P129
    	
 
    	
L700, P257
    	
 
    	
*
    	
 
    	
L720, P538
    
	
Eaton
    	
 
    	
L1775, P271
    	
 
    	
L1775, P449
    	
 
    	
L1775, P564
    	
 
    	
L2207, P0903
    	
 
    	
L2278, P834
    	
 
    	
*
    	
 
    	
L2547, P0918
    
	
Emmet
    	
 
    	
L1032, P537
    	
 
    	
L1032, P669
    	
 
    	
L1032, P738
    	
 
    	
Instrument No.
   5060620
   B1108, P168
    	
 
    	
L1122, P870
    	
 
    	
L1149, P747
    	
 
    	
L1172, P246
    

 

Sch. 1-1

 

	
County
    	
 
    	
Original Mortgage
   Indenture
    	
 
    	
First Supplemental
   Indenture
    	
 
    	
Second Supplemental
   Indenture
    	
 
    	
Fourth Supplemental
   Indenture
    	
 
    	
Fifth Supplemental
   Indenture
    	
 
    	
Sixth Supplemental
   Indenture
    	
 
    	
Seventh Supplemental
   Indenture
    
	
Genesee
    	
 
    	
Instrument No.
   200312160161714
    	
 
    	
Instrument No.
   200312160161715
    	
 
    	
Instrument No.
   200312160161716
    	
 
    	
Instrument No.
   200812160082181
    	
 
    	
Instrument No.
   201004270037454
    	
 
    	
Instrument No.
   201211010081960
    	
 
    	
Instrument No.
   201412230086281
    
	
Gladwin
    	
 
    	
L709, P27
    	
 
    	
L709, P151
    	
 
    	
L709, P212
    	
 
    	
L883, P873
    	
 
    	
L917, P533
    	
 
    	
*
    	
 
    	
L1038, P29
    
	
Grand Traverse
    	
 
    	
L2049, P508
    	
 
    	
L2049, P652
    	
 
    	
L2049, P733
    	
 
    	
Instrument No.
   2008R-20555
    	
 
    	
Instrument No.
   2010R-07137
    	
 
    	
Instrument No.
   2012R-19757
    	
 
    	
Instrument No.
   2014R-20480
    
	
Gratiot
    	
 
    	
L740, P595
    	
 
    	
L740, P752
    	
 
    	
L740, P846
    	
 
    	
L858, P1452
    	
 
    	
L883, P563
    	
 
    	
L929, P1022
    	
 
    	
L966, P734
    
	
Hillsdale
    	
 
    	
L1125, P517
    	
 
    	
L1125, P643
    	
 
    	
L1125, P706
    	
 
    	
L1373, P218
    	
 
    	
L1422, P469
    	
 
    	
*
    	
 
    	
L1579, P0001
    
	
Ingham
    	
 
    	
L3084, P73
    	
 
    	
L3084, P74
    	
 
    	
L3084, P75
    	
 
    	
Instrument No.
   2008-047041
   B3327, P1040
    	
 
    	
B3382, P132
    	
 
    	
*
    	
 
    	
Instrument No.
   2014-046389
    
	
Ionia
    	
 
    	
L577, P7152
    	
 
    	
L577, P7299
    	
 
    	
L577, P7383
    	
 
    	
L610, P4348
    	
 
    	
L0616, P1388
    	
 
    	
L0626, P6502
    	
 
    	
L0636, P1185
    
	
Iosco
    	
 
    	
L781, P793
    	
 
    	
L782, P1
    	
 
    	
L782, P79
    	
 
    	
L964, P582
    	
 
    	
L997, P895
    	
 
    	
L1062, P178
    	
 
    	
L1120, P865
    
	
Isabella
    	
 
    	
L1216, P4
    	
 
    	
L1216, P122
    	
 
    	
L1216, P177
    	
 
    	
L1458, P591
    	
 
    	
L1515, P139
    	
 
    	
*
    	
 
    	
L1685, P680
    
	
Jackson
    	
 
    	
L1767, P119
    	
 
    	
L1767, P117
    	
 
    	
L1767, P118
    	
 
    	
Instrument No.
   2524184
   L1911, P696
    	
 
    	
L1941, P1155
    	
 
    	
L1995, P0646
    	
 
    	
L2045, P0612
    
	
Kalamazoo
    	
 
    	
Instrument No.
   2003-087140
    	
 
    	
Instrument No.
   2003-087142
    	
 
    	
Instrument No.
   2003-087141
    	
 
    	
Instrument No.
   2008-039292
    	
 
    	
Instrument No.
   2010-013218
    	
 
    	
Instrument No.
   2012-040528
    	
 
    	
Instrument No.
   2014-040469
    
	
Kalkaska
    	
 
    	
Instrument No.
   3053445
    	
 
    	
Instrument No.
   3053446
    	
 
    	
Instrument No.
   3053447
    	
 
    	
Instrument No.
   3088499
    	
 
    	
Instrument No.
   3095622
    	
 
    	
Instrument No.
   3110845
    	
 
    	
Instrument No.
   3122483
    
	
Kent
    	
 
    	
Instrument No.
   20040105-0000653
    	
 
    	
Instrument No.
   20040105-0000654
    	
 
    	
Instrument No.
   20040105-0000655
    	
 
    	
Instrument No.
   20081216-0106138
    	
 
    	
Instrument No.
   20100426-0037103
    	
 
    	
*
    	
 
    	
Instrument No.
   2014-12160103454
    
	
Lake
    	
 
    	
L281, P477
    	
 
    	
L281, P598
    	
 
    	
L281, P656
    	
 
    	
L330, P319
    	
 
    	
L339, P1857
    	
 
    	
*
    	
 
    	
L374, P716
    
	
Leelanau
    	
 
    	
L1045, P258
    	
 
    	
L1045, P258
    	
 
    	
L1045, P258
    	
 
    	
L1045, P258
    	
 
    	
L1046, P153
    	
 
    	
*
    	
 
    	
L1216, P446
    
	
Lenawee
    	
 
    	
L2258, P769
    	
 
    	
L2258, P770
    	
 
    	
L2258, P771
    	
 
    	
L2375, P632
    	
 
    	
L2403, P35
    	
 
    	
*
    	
 
    	
L2498, P879
    
	
Livingston
    	
 
    	
L4282, P0464
    	
 
    	
L4282, P0602
    	
 
    	
L4282, P0677
    	
 
    	
Instrument No.
   2008R-033965
    	
 
    	
Instrument No.
   2010R-012370
    	
 
    	
*
    	
 
    	
Instrument No.
   2014R-034929
    
	
Manistee
    	
 
    	
L890, P415
    	
 
    	
L890, P578
    	
 
    	
L890, P678
    	
 
    	
Instrument No.
   2008R007239
    	
 
    	
Instrument No.
   2010R002229
    	
 
    	
Instrument No.
   2012R006468
    	
 
    	
Instrument No.
   2014R006160
    
	
Mason
    	
 
    	
L555, P2265
    	
 
    	
L555, P2419
    	
 
    	
L555, P2510
    	
 
    	
Instrument No.
   2008R06641
    	
 
    	
Instrument No.
   2010R02375
    	
 
    	
*
    	
 
    	
Instrument No.
   2014R06378
    
	
Mecosta
    	
 
    	
L705, P2593
    	
 
    	
L705, P2707
    	
 
    	
L705, P2758
    	
 
    	
Instrument No.
   200800009891
   L0782, P2850
    	
 
    	
L799, P795
    	
 
    	
*
    	
 
    	
Instrument No.
   201400008610
   L850, P444
    
	
Midland
    	
 
    	
L1206, P4
    	
 
    	
L1206, P160
    	
 
    	
L1206, P253
    	
 
    	
L1451, P208
    	
 
    	
L1507, P721
    	
 
    	
*
    	
 
    	
L01582, P00531
    

 

Sch. 1-2

 

 

	
County
    	
 
    	
Original Mortgage
   Indenture
    	
 
    	
First Supplemental
   Indenture
    	
 
    	
Second Supplemental
   Indenture
    	
 
    	
Fourth Supplemental
   Indenture
    	
 
    	
Fifth Supplemental
   Indenture
    	
 
    	
Sixth Supplemental
   Indenture
    	
 
    	
Seventh Supplemental
   Indenture
    
	
Missaukee
    	
 
    	
Instrument No.
   2003-06377
    	
 
    	
Instrument No.
   2003-06378
    	
 
    	
Instrument No.
   2003-06379
    	
 
    	
Instrument No.
   2008-04378
    	
 
    	
Instrument No.
   2010-01327
    	
 
    	
*
    	
 
    	
Instrument No.
   2014-04080
    
	
Monroe
    	
 
    	
L2647, P657
    	
 
    	
L2647, P833
    	
 
    	
L2647, P935
    	
 
    	
Instrument No.
   2008R22325
    	
 
    	
Instrument No.
   2010 R08054
    	
 
    	
Instrument No.
   2012R23743
    	
 
    	
Instrument No.
   2014R23271
    
	
Montcalm
    	
 
    	
L1149, P293
    	
 
    	
L1149, P442
    	
 
    	
L1149, P528
    	
 
    	
L1426, P510
    	
 
    	
L1475, P1019
    	
 
    	
*
    	
 
    	
Instrument No.
   2014R-05875
    
	
Montmorency
    	
 
    	
L244, P679
    	
 
    	
L244, P804
    	
 
    	
L244, P866
    	
 
    	
Instrument No.
   200800037674
   L305, P573
    	
 
    	
L314, P926
    	
 
    	
*
    	
 
    	
Instrument No.
   201400061153
   L345, P109-192
    
	
Muskegon
    	
 
    	
L3581, P921
    	
 
    	
L3581, P922
    	
 
    	
L3581, P923
    	
 
    	
L3797, P757
    	
 
    	
L3845, P318
    	
 
    	
*
    	
 
    	
L4039, P277
    
	
Newaygo
    	
 
    	
L404, P5495
    	
 
    	
L404, P5687
    	
 
    	
L404, P5816
    	
 
    	
L433, P3422
    	
 
    	
L438, P5704
    	
 
    	
*
    	
 
    	
L456, P4372
    
	
Oakland
    	
 
    	
L31677, P1
    	
 
    	
L31677, P128
    	
 
    	
L31677, P196
    	
 
    	
Instrument No.
   215217
   L40774, P814
    	
 
    	
B42014, P518
    	
 
    	
*
    	
 
    	
L47694, P274
    
	
Oceana
    	
 
    	
GR 2004/822
    	
 
    	
GR 2004/976
    	
 
    	
GR 2004/1067
    	
 
    	
GR 2008/24361
    	
 
    	
GR 2010/6790
    	
 
    	
*
    	
 
    	
201400007004
   L2014, P19533-9616
    
	
Ogemaw
    	
 
    	
Instrument No.
   3044799
    	
 
    	
Instrument No.
   3044800
    	
 
    	
Instrument No.
   3044801
    	
 
    	
Instrument No.
   3083352
    	
 
    	
Instrument No.
   3092393
    	
 
    	
*
    	
 
    	
Instrument No.
   3125180
    
	
Oscoda
    	
 
    	
L204, P332
    	
 
    	
L204, P479
    	
 
    	
L204, P563
    	
 
    	
L208, P03034
    	
 
    	
L210, P00987
    	
 
    	
L212, P02739
    	
 
    	
214-02898
    
	
Otsego
    	
 
    	
L0976, P078
    	
 
    	
L0976, P222
    	
 
    	
L0976, P303
    	
 
    	
L1187, P72
    	
 
    	
L1228, P493
    	
 
    	
*
    	
 
    	
L1363, P1
    
	
Ottawa
    	
 
    	
L4372, P557
    	
 
    	
L4373, P001
    	
 
    	
L4373, P221
    	
 
    	
Instrument No.
   0044941
   L5754, P426
    	
 
    	
Instrument No.
   2010-0015611
    	
 
    	
*
    	
 
    	
Instrument No.
   2014-0044009
    
	
Presque Isle
    	
 
    	
L383, P100
    	
 
    	
L383, P232
    	
 
    	
L383, P301
    	
 
    	
Instrument No.
   200800008708
   L469, P933
    	
 
    	
L489, P842
    	
 
    	
*
    	
 
    	
L557, P843-926
    
	
Roscommon
    	
 
    	
L997, P1285
    	
 
    	
L997, P1404
    	
 
    	
L997, P1460
    	
 
    	
Instrument No.
   200800008515
   L1079, P21
    	
 
    	
L1092, P2232
    	
 
    	
*
    	
 
    	
L1145, P1812
    
	
Saginaw
    	
 
    	
L2269, P1263
    	
 
    	
L2269, P1264
    	
 
    	
L2269, P1265
    	
 
    	
Instrument No.
   2008035230
   L2516, P2158
    	
 
    	
Instrument No.
   2010010027
   L2575, P1024
    	
 
    	
Instrument No.
   201203390
   L2696, P1532
    	
 
    	
Instrument No.
   2014034005
   L2796, P1029
    
	
St. Joseph
    	
 
    	
L1205, P86
    	
 
    	
L1205, P196
    	
 
    	
L1205, P243
    	
 
    	
L1510, P1
    	
 
    	
L1571, P810
    	
 
    	
L1674, P465
    	
 
    	
L1768, P226
    
	
Shiawassee
    	
 
    	
L1052, P721
    	
 
    	
L1052, P722
    	
 
    	
L1052, P723
    	
 
    	
L1130, P0333
    	
 
    	
L1146, P0786
    	
 
    	
*
    	
 
    	
L1205, P466
    
	
Tuscola
    	
 
    	
Instrument No. 200400846443, L980, P619
    	
 
    	
Instrument No. 200400846444, L980, P772
    	
 
    	
Instrument No. 200400846445, L980, P862
    	
 
    	
Instrument No.
   200800914506
   L1163, P891
    	
 
    	
L1196, P1456
    	
 
    	
L1263, P160
    	
 
    	
L1320, P1179
    

 

Sch. 1-3

 

 

	
County
    	
 
    	
Original Mortgage
   Indenture
    	
 
    	
First Supplemental
   Indenture
    	
 
    	
Second Supplemental
   Indenture
    	
 
    	
Fourth Supplemental
   Indenture
    	
 
    	
Fifth Supplemental
   Indenture
    	
 
    	
Sixth Supplemental
   Indenture
    	
 
    	
Seventh Supplemental
   Indenture
    
	
Van Buren
    	
 
    	
L1403, P256
    	
 
    	
L1403, P257
    	
 
    	
L1403, P258
    	
 
    	
Instrument No.
   LR-3191975
   L1511, P5
    	
 
    	
L1534, P360
    	
 
    	
L1575, P308
    	
 
    	
Instrument No.
   LR-3293460
   L1612, P118
    
	
Washtenaw
    	
 
    	
L4352, P238
    	
 
    	
L4352, P239
    	
 
    	
L4352, P240
    	
 
    	
Instrument No.
   5876781
   L4710, P182
    	
 
    	
L4786, P271
    	
 
    	
*
    	
 
    	
L5070, P814
    
	
Wexford
    	
 
    	
L530, P704
    	
 
    	
L530, P834
    	
 
    	
L531, P001
    	
 
    	
Instrument No.
   200800007690
   L616, P1393
    	
 
    	
L629, P2044
    	
 
    	
*
    	
 
    	
L672, P2456
    

 

* Recording information not available. Proof of filing for recordation contained in “Certificate of Confirmation of Filing — Michigan Electric Company, LLC Sixth Supplemental Indenture,” dated January 3, 2013 and signed by Donald Rysztak, Commercial Closing Officer of Fidelity National Title.

 

Sch. 1-4

 

Exhibit A

 

DESCRIPTION OF PROPERTIES

 

The following properties of the Company, owned as of the date hereof, have been acquired by the Company subsequent to the date of the Seventh Supplemental Indenture:

 

See Attached.

 

Ex. A-1

 

	
Company
    	
 
    	
Project
    	
 
    	
Tract Number
    	
 
    	
Landowner(s)
    	
 
    	
Rights Acquired
    	
 
    	
Date
    	
 
    	
County
    	
 
    	
Section
    	
 
    	
Twp
    	
 
    	
Range
    	
 
    	
State
    	
 
    	
Use
    	
 
    	
Recorded at
    
	
METC
    	
 
    	
Weeds Lake
    	
 
    	
MI-KA-40.000
    	
 
    	
HAR Co, LLC
    	
 
    	
Condemnation Easement
    	
 
    	
4/9/2015
    	
 
    	
Kalamazoo
    	
 
    	
29
    	
 
    	
T2S
    	
 
    	
R12W
    	
 
    	
MI
    	
 
    	
Two 138kV double-circuit transmission lines
    	
 
    	
2015-018791
    
	
METC
    	
 
    	
Weeds Lake
    	
 
    	
MI-KA-40.200
    	
 
    	
HAR Co, LLC
    	
 
    	
Condemnation Easement
    	
 
    	
4/9/2015
    	
 
    	
Kalamazoo
    	
 
    	
29
    	
 
    	
T2S
    	
 
    	
R12W
    	
 
    	
MI
    	
 
    	
Two 138kV double-circuit transmission lines
    	
 
    	
2015-018791
    
	
METC
    	
 
    	
Weeds Lake
    	
 
    	
MI-KA-60.000
    	
 
    	
Joseph and Pamela Weiner
    	
 
    	
Condemnation Easement
    	
 
    	
4/15/2015
    	
 
    	
Kalamazoo
    	
 
    	
29
    	
 
    	
T2S
    	
 
    	
R12W
    	
 
    	
MI
    	
 
    	
Two 138kV double-circuit transmission lines
    	
 
    	
2015-020150
    
	
METC
    	
 
    	
Weeds Lake
    	
 
    	
MI-KA-60.205
    	
 
    	
John P. Kasten and Jane Fontaine, Successor Trustees   Under Trust Agreement Dated June 26, 1965
    	
 
    	
Condemnation Easement
    	
 
    	
3/9/2015
    	
 
    	
Kalamazoo
    	
 
    	
29
    	
 
    	
T2S
    	
 
    	
R12W
    	
 
    	
MI
    	
 
    	
Two 138kV double-circuit transmission lines
    	
 
    	
2015-008851
    
	
METC
    	
 
    	
Weeds Lake
    	
 
    	
MI-KA-80.000
    	
 
    	
Jack and Jane Kuipers
    	
 
    	
Condemnation Easement
    	
 
    	
3/9/2015
    	
 
    	
Kalamazoo
    	
 
    	
29
    	
 
    	
T2S
    	
 
    	
R12W
    	
 
    	
MI
    	
 
    	
Two 138kV double-circuit transmission lines
    	
 
    	
2015-009423
    
	
METC
    	
 
    	
Weeds Lake
    	
 
    	
MI-KA-100.000
    	
 
    	
Kenneth and Margaret Irish
    	
 
    	
Condemnation Easement
    	
 
    	
3/9/2015
    	
 
    	
Kalamazoo
    	
 
    	
28
    	
 
    	
T2S
    	
 
    	
R12W
    	
 
    	
MI
    	
 
    	
Two 138kV double-circuit transmission lines
    	
 
    	
2015-009424
    
	
METC
    	
 
    	
Weeds Lake
    	
 
    	
MI-KA-115.000
    	
 
    	
Wayne and Sally Sohlden, as Trustees of the Wayne C.   and Sally J. Sohlden Trust Dated December 23, 2005
    	
 
    	
Condemnation Easement
    	
 
    	
2/17/2015
    	
 
    	
Kalamazoo
    	
 
    	
28
    	
 
    	
T2S
    	
 
    	
R12W
    	
 
    	
MI
    	
 
    	
Two 138kV double-circuit transmission lines
    	
 
    	
2015-008852
    
	
METC
    	
 
    	
Weeds Lake
    	
 
    	
MI-KA-130.000
    	
 
    	
Douglas Maxwell, as Trustee of the Douglas E.   Maxwell 2000 Trust and Micki Maxwell, as Trustee of the Micki A. Maxwell 2000   Trust
    	
 
    	
Condemnation Easement
    	
 
    	
3/9/2015
    	
 
    	
Kalamazoo
    	
 
    	
28 & 33
    	
 
    	
T2S
    	
 
    	
R12W
    	
 
    	
MI
    	
 
    	
Two 138kV double-circuit transmission lines
    	
 
    	
2015-009425
    
	
METC
    	
 
    	
Weeds Lake
    	
 
    	
MI-KA-170.000
    	
 
    	
Jack Kuipers, as Trustee of the Bruce H. Kuipers   Revocable Trust Dated December 12, 2002
    	
 
    	
Condemnation Easement
    	
 
    	
3/9/2015
    	
 
    	
Kalamazoo
    	
 
    	
33
    	
 
    	
T2S
    	
 
    	
R12W
    	
 
    	
MI
    	
 
    	
Two 138kV double-circuit transmission lines
    	
 
    	
2015-009426
    
	
METC
    	
 
    	
Weeds Lake
    	
 
    	
MI-KA-170.310
    	
 
    	
Jack Kuipers, as Trustee of the Bruce H. Kuipers   Revocable Trust Dated December 12, 2002
    	
 
    	
Condemnation Easement
    	
 
    	
3/9/2015
    	
 
    	
Kalamazoo
    	
 
    	
33
    	
 
    	
T2S
    	
 
    	
R12W
    	
 
    	
MI
    	
 
    	
Two 138kV double-circuit transmission lines
    	
 
    	
2015-008848
    
	
METC
    	
 
    	
Weeds Lake
    	
 
    	
MI-KA-180.000
    	
 
    	
Charter Township of Oshtemo
    	
 
    	
Condemnation Easement
    	
 
    	
3/9/2015
    	
 
    	
Kalamazoo
    	
 
    	
33
    	
 
    	
T2S
    	
 
    	
R12W
    	
 
    	
MI
    	
 
    	
Two 138kV double-circuit transmission lines
    	
 
    	
2015-008849
    
	
METC
    	
 
    	
Weeds Lake
    	
 
    	
MI-KA-220.500
    	
 
    	
AT&T Corp.
    	
 
    	
Voluntary Easement
    	
 
    	
12/17/2014
    	
 
    	
Kalamazoo
    	
 
    	
24
    	
 
    	
T2S
    	
 
    	
R12W
    	
 
    	
MI
    	
 
    	
Two 138kV double-circuit transmission lines
    	
 
    	
2015-000707
    
	
METC
    	
 
    	
Weeds Lake
    	
 
    	
MI-KA-240.500
    	
 
    	
George Demetrakopoulos
    	
 
    	
Condemnation Easement
    	
 
    	
3/9/2015
    	
 
    	
Kalamazoo
    	
 
    	
34
    	
 
    	
T2S
    	
 
    	
R12W
    	
 
    	
MI
    	
 
    	
Two 138kV double-circuit transmission lines
    	
 
    	
2015-009427
    
	
METC
    	
 
    	
Weeds Lake
    	
 
    	
MI-KA-250.500
    	
 
    	
George Demetrakopoulos
    	
 
    	
Condemnation Easement
    	
 
    	
3/9/2015
    	
 
    	
Kalamazoo
    	
 
    	
34
    	
 
    	
T2S
    	
 
    	
R12W
    	
 
    	
MI
    	
 
    	
Two 138kV double-circuit transmission lines
    	
 
    	
2015-009427
    
	
METC
    	
 
    	
Weeds Lake
    	
 
    	
MI-KA-270.500
    	
 
    	
Kelly Hicks and Thomas Eller
    	
 
    	
Condemnation Easement
    	
 
    	
3/9/2015
    	
 
    	
Kalamazoo
    	
 
    	
25
    	
 
    	
T2S
    	
 
    	
R12W
    	
 
    	
MI
    	
 
    	
Two 138kV double-circuit transmission lines
    	
 
    	
2015-009428
    
	
METC
    	
 
    	
Weeds Lake
    	
 
    	
MI-KA-290.500
    	
 
    	
Henrietta Squires, as Trustee of the Henrietta   Squires Trust dated April 15, 2010
    	
 
    	
Condemnation Easement
    	
 
    	
3/9/2015
    	
 
    	
Kalamazoo
    	
 
    	
35
    	
 
    	
T2S
    	
 
    	
R12W
    	
 
    	
MI
    	
 
    	
Two 138kV double-circuit transmission lines
    	
 
    	
2015-009429
    
	
METC
    	
 
    	
Weeds Lake
    	
 
    	
MI-KA-300.500
    	
 
    	
4110 South 9th Street LLC
    	
 
    	
Condemnation Easement
    	
 
    	
3/9/2015
    	
 
    	
Kalamazoo
    	
 
    	
35
    	
 
    	
T2S
    	
 
    	
R12W
    	
 
    	
MI
    	
 
    	
Two 138kV double-circuit transmission lines
    	
 
    	
2015-008850
    
	
METC
    	
 
    	
Weeds Lake
    	
 
    	
MI-KA-325.500
    	
 
    	
Thomas and Carole DeBoer
    	
 
    	
Voluntary Easement
    	
 
    	
3/13/2015
    	
 
    	
Kalamazoo
    	
 
    	
35
    	
 
    	
T2S
    	
 
    	
R12W
    	
 
    	
MI
    	
 
    	
Two 138kV double-circuit transmission lines
    	
 
    	
2015-008836
    
	
METC
    	
 
    	
Weeds Lake
    	
 
    	
MI-KA-335.500
    	
 
    	
Mophie, LLC
    	
 
    	
Condemnation Easement
    	
 
    	
5/27/2015
    	
 
    	
Kalamazoo
    	
 
    	
35
    	
 
    	
T2S
    	
 
    	
R12W
    	
 
    	
MI
    	
 
    	
Two 138kV double-circuit transmission lines
    	
 
    	
2015-022249
    
	
METC
    	
 
    	
Weeds Lake
    	
 
    	
MI-KA-340.320
    	
 
    	
JMK Holdings, LLC
    	
 
    	
Condemnation Easement
    	
 
    	
3/9/2015
    	
 
    	
Kalamazoo
    	
 
    	
35
    	
 
    	
T2S
    	
 
    	
R12W
    	
 
    	
MI
    	
 
    	
Two 138kV double-circuit transmission lines
    	
 
    	
2015-009430
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ACQUIRED   since last report
    
	
METC
    	
 
    	
Morocco
    	
 
    	
14-130-008-00
    	
 
    	
Michael & Mary Strahan
    	
 
    	
Voluntary Easement
    	
 
    	
7/10/2015
    	
 
    	
Monroe
    	
 
    	
30
    	
 
    	
T7S
    	
 
    	
R6E
    	
 
    	
MI
    	
 
    	
Transmission lines to substation
    	
 
    	
2015R05547
    
	
METC
    	
 
    	
Morocco
    	
 
    	
14-130-012-10
    	
 
    	
Samuel & Gwenda Walter
    	
 
    	
Voluntary Easement
    	
 
    	
7/10/2015
    	
 
    	
Monroe
    	
 
    	
30
    	
 
    	
T7S
    	
 
    	
R6E
    	
 
    	
MI
    	
 
    	
Transmission lines to substation
    	
 
    	
2015R05641
    

 

 

MI-KA-40.000

 

LEGAL DESCRIPTION (SUBJECT PARCEL) (PER LIBER 2068, PG 1201)

 

That part of the Southwest 1/4 of Section 29, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan described as: Commencing at the Southwest corner of said Section 29; thence NOO°09’14”W along the West line of said Section 29 1003.60 feet to the North line of the South 30 acres of the West 1/2 of said Southwest 1/4 and the POINT OF BEGINNING of this description; thence NOO°09’14”W along said West line 1625.92 feet to the West 1/4 corner of said Section 29; thence N89°25’13”E along the North line of said Southwest 1/4 1305.01 feet to the East line of the West 1/2 of said Southwest 1/4: thence SOO°04’37”E along said East line 1626.76 feet to the North line of said South 30 acres; thence S89°27’22”W along said North line 1302.83 feet to the point of beginning. This parcel contains 48.69 acres.

 

PERMANENT EASEMENT MI-KA-40.000:

 

That portion being described as follows:

 

BEGINNING at the West 1/4 corner of Section 29, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan; thence S89°38’28”E 872.60 feet along the East-West 1/4 line of said Section 29; thence S00°52’30”W 220.02 feet; thence N89°38’28”W 872.18 feet to a point on the West line of said Section 29; thence N00°45’57”E 220.02 feet along said West line to the Point of Beginning.

 

 

MI-KA-040.200

 

LEGAL DESCRIPTION (SUBJECT PARCEL) (PER LIBER 2068, PG 1201):

 

That part of the Southwest 1/4 of Section 29, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan described as: Commencing at the Southwest corner of said Section 29; thence NOO°09’14”W along the West line of said Section 29 1003.60 feet to the North line of the South 30 acres of the West 1/2 of said Southwest 1/4 and the POINT OF BEGINNING of this description; thence NOO°09’14”W along said West line 1625.92 feet to the West 1/4 corner of said Section 29; thence N89°25’13”E along the North line of said Southwest 1/4 1305.01 feet to the East line of the West 1/2 of said Southwest 1/4: thence SOO°04’37”E along said East line 1626.76 feet to the North line of said South 30 acres; thence S89°27’22”W along said North line 1302.83 feet to the point of beginning. This parcel contains 48.69 acres.

 

PERMANENT EASEMENT  MI-KA-040.200:

 

That portion of a 220 foot wide easement being described as follows:

 

Commencing at the North 1/4 corner of Section 29, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan; thence S00°52’44”W 1326.75 feet along the North-South 1/4 line of said Section 29 to the POINT OF BEGINNING; thence continuing along said North-South 1/4 line S00°52’44”W 1161.74 feet; thence N53°40’38”W 131.93 feet; thence N00°20’46”E 863.79 feet; thence N89°50’20”W 1622.32 feet; thence S00°52’30”W 1100.72 feet; thence N89°38’28”W 220.01 feet; thence N00°52’30”E 1320.00 feet; thence S89°50’20”E 1957.88 feet to the Point of Beginning.

 

 

MI-KA-060.000

 

LEGAL DESCRIPTION (SUBJECT PARCEL) (PER DOC. NO. 2009-016280)

 

That part of the Southeast 1/4 of Section 29, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan described as: Commencing at the East 1/4 corner of said Section 29; thence South 89 degrees 33’21” West clan the North line of said Southeast 1/4 1919.27 feet (shown as South 89 degrees 36’13’ West along the North line of said Southeast 1/4 1918.60) to the East line of the East line of the West 42 rods of said Southeast 1/4 and the POINT OF BEGINNING of this description: thence South 00 degrees 00’02” West along said East line 2628.00 feet (shown as South 00 degrees 00 03” West along said East line 2627.42 feet in survey last dated November 30, 2007 by Chettleburg & Associates); to the South line of said Southeast 1/4; thence South 89 degrees 17’25” West along said South line 8.56 feet; thence North 00 degrees 02’03” West 800.00 feet; thence South 89 degrees 17’25” West 200.00 feet; thence South 00 degrees 02’03” West 800.00 feet to said South line; thence South 89 degrees 17’25” West along said South line 329.34 feet to a point that is North 89 degrees 17 25” East 155.10 feet from the South 1/4 corner of said Section 29; thence North 00 degrees 02’03” East 941.00 feet to the North line of the South 941 feet of said Southeast 1/4; thence South 89 degrees 17’25” West along said North line 155.66 feet to the West line of said Southeast 1/4; thence North 00 degrees 00’00” East along said West line 1690.21 feet to the Central 1/4 corner of said Section 29; thence North 89 degrees 33’21” East (shown as North 89 degrees 36’13” in survey last dated November 30, 2007 by Chettleburg Associates) along the North line of said Southeast 1/4 693.00 feet to the point of beginning, subject to any portion taken, used or deeded for highway purposes.

 

Also described by survey dated 2-2-2009, prepared by Ingersoll, Watson and McMachen, Job No. 35615

 

A parcel of land situated in the Southeast quarter of Section 29, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan being more particularly described as follows: Commencing at the South quarter corner of Section 29, Town 2 South, Range 12 West; thence North 00 degrees 02’52” West 941.01 feet along the West line of the Southeast quarter of said Section to the Place of Beginning; thence North 89 degrees 14’34” East 155.66 feet parallel with the South line of said Southeast quarter; thence South 00 degrees 00’49” East 941.02 feet to said South line at a point North 89 degrees 14’34” East 155.10 feet from said South quarter corner; thence North 89 degrees 14’34” East 329.34 feet along said South line; thence North 00 degrees 02’08” West 800 feet; thence North 89 degrees 14’34” East 199.93 feet parallel with said South line to the East line of the West 42 acres of the West half of said Southeast quarter according to the Government survey thereof; thence North 00 degrees 00’58” West 1827.46 feet along said East line to the North line if said Southeast quarter; thence South 89 degrees 33’21” West 685.52 feet along said North line to said West line; thence 00 degrees 02’52” East 1690.17 feet along said West line to the place of beginning. The Southerly 33.0 feet being subject to highway easement for “M” Avenue.

 

 

PERMANENT EASEMENT     MI-KA-60.000:

 

That part being described as follows:

 

Commencing at the South 1/4 corner of Section 29, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan; thence N00°55’40”E 2631.19 feet along the North-South 1/4 line of said Section 29; thence S89°28’07”E 229.66 feet along the East-West 1/4 line of said Section 29 to the POINT OF BEGINNING; thence continuing along said East-West 1/4 line, S89°28’07”E 376.17 feet; thence S53°40’28”E 97.71 feet; thence S00°57’34”W 269.80 feet; thence N53°40’28”W 558.99 feet to the Point of Beginning.

 

 

MI-KA-060.205

 

LEGAL DESCRIPTION (SUBJECT PARCEL)

(PER KALAMAZOO COUNTY TAX ASSESSOR)

 

Easterly 66 feet of the West 396 feet of the West 1/2 of the Northeast quarter of Section 29, Town 2 South, Range 12 West.

 

PERMANENT EASEMENT   MI-KA-060.205:

 

That portion of a 220 foot wide easement being described as follows:

 

Commencing at the North 1/4 corner of Section 29, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan; thence S89°21’58”E 330.00 feet along the North line of said Section 29; thence S00°52’44”W 2454.76 feet to the POINT OF BEGINNING; thence S53°40’28”E 81.01 feet; thence S00°52’44”W 150.77 feet to a point on the East-West 1/4 line of said Section 29; thence N89°28’11”W 66.00 feet along said East-West 1/4 line; thence N00°52’44”E 198.15 feet to the Point of Beginning.

 

 

MI-KA-080.000

 

LEGAL DESCRIPTION (SUBJECT PARCEL) (PER L. 1646, PG. 768)

 

The Northeast 1/4 of the Southeast 1/4 of Section 29, Town 2 South, Range 12 West, EXCEPT the following parcels:

 

(1)         The North 10 Rods.

(2)         Commencing at the East 1/4 post of said Section 29, Town 2 South, Range 12 West; thence South 00 degrees, 11’ 02” East along the East line of said Section 29, 163.64 feet to the point of beginning; thence continuing South 00 degrees, 11’ 02” East 654.57 feet; thence South 89 degrees, 02’ 40” West, 1305.89 feet; thence North 0 degrees 15’ 13” West, 655.02 feet; thence North 89 degrees 03’ 51” East, 1306.60 feet to the point of beginning.

 

PERMANENT EASEMENT   MI-KA-080.000:

 

That portion of a proposed 220 foot wide easement being described as follows:

 

Commencing at the East 1/4 corner of Section 29, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan; thence S01°03’20”W 830.05 feet along the East line of said Section 29 to the POINT OF BEGINNING; thence continuing S01°03’20”W 220.91 feet along said East line; thence N83°46’03”W 1067.12 feet; thence N53°40’28”W 207.60 feet; S89°42’58”E 1118.56 feet; thence S83°46’03”E 114.26 feet to the Point of Beginning.

 

 

MI-KA-100.000

 

LEGAL DESCRIPTION (SUBJECT PARCEL) (PER DOCUMENT NO. 2005-050325)

 

The North half of the South half of the Northwest quarter of the Southwest quarter of Section 28, Town 2 South, Range 12 West.

 

PERMANENT EASEMENT MI-KA-100.000:

 

That part of a proposed 220 foot wide easement being described as follows:

 

Commencing at the West 1/4 corner of Section 28, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan; thence S01°03’20”W 830.06 feet along the West line of said Section 30 and the centerline of S. 4th Street (66.00 feet wide) to the POINT OF BEGINNING; thence S83°46’01”E 948.56 feet; thence S59°02’38”E 108.39 feet to a point on the South line of the North 1/2 of the South 1/2 of the Northwest 1/4 of the Southwest 1/4; thence N89°35’19”W 1038.72 feet along said South line to a point on said West line of Section 28 and said centerline of 4th Street; thence N01°03’20”E 151.31 feet along said West line and centerline to the Point of Beginning.

 

 

MI-KA-115.000

 

LEGAL DESCRIPTION (SUBJECT PARCEL) (PER DOCUMENT NO. 2006-005438)

 

Commencing at the Southwest corner of Section 28, Town 2 South Range 12 West; thence North 0 degrees 00 minutes 51 seconds West 995.31 feet along the West line of said section for the place of beginning; thence continuing North 0 degrees 00 minutes 51 seconds West 314.30 feet along the West line of said section to the North line of the Southwest quarter, Southwest quarter said section; thence North 89 degrees 28 minutes 90 seconds East 1314.11 feet thereon to the East line of the Southwest quarter, Southwest quarter said Section; thence South 0 degrees 00 minutes 00 seconds West 324.05 feet thereon; thence South 89 degrees 53 minutes 40 seconds West parallel with South Section line 1314.14 feet to the place of beginning.

 

PERMANENT EASEMENT MI-KA-115.000:

 

That portion of a proposed 220 foot wide easement being described as follows:

 

Commencing at the Southwest corner of Section 28, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan; thence N01°03’20”E 1308.49 feet along the West line of said Section 28 to a point in the North line of the Southwest 1/4 of the Southwest 1/4 of said Section 28; thence S89°28’46”E 1167.54 feet along said North line to the POINT OF BEGINNING; thence continuing along said North line, S89°28’46”E 146.38 feet to a point on the East line of the Southwest 1/4 of the Southwest 1/4 of said Section 28; thence S01°01’18”W 85.58 feet along said East line; thence N59°02’25”W 168.91 feet to the Point of Beginning.

 

 

MI-KA-130.000

 

LEGAL DESCRIPTION (SUBJECT PARCEL) (PER DOCUMENT NO. 2000-029143)

 

A parcel of land located in the South one—half of Section 28 and the North one—half of Section 33, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan, and more particularly described as follows: Beginning on the East line of said Section 28 at the Northeast corner of the South 1/2 of the Southeast 1/4 of the Southeast 1/4 of said Section 28, said Place of Beginning lying North 00 degrees 50 minutes 44 seconds West, 661.84 feet (measured North 00 degrees 49 minutes 56 seconds West, 661.93 feet) from the Southeast corner of said Section 28, also being the Northeast corner of said Section 33; thence South 00 degrees 50 minutes 44 seconds East, 330.92 feet (measured South 00 degrees 49 minutes 56 seconds East, 331.01 feet) along said East line to the Southeast corner of the North 1/2 of said South 1/2 of the Southeast 1/4 of the Southeast 1/4; thence South 87 degrees 54 minutes 04 seconds West, 1311.49 feet (measured South 87 degrees 54 minutes 04 seconds West, 1311.56 feet) along the South line of said North 1/2 of the South 1/2 of the Southeast 1/4 of the Southeast 1/4 to the Southwest corner of said North 1/2 of said South 1/2 of the Southeast 1/4 of the Southeast 1/4; thence South 00 degrees 53 minutes 47 seconds East, 331.58 feet (measured South 00 degrees 53 minutes 08 seconds East, 331.59 feet) along the East line to the West 1/2 of said Southeast 1/4 of Section 28 to the Southeast corner of said West 1/2 of the Southeast 1/4 of Section 28; thence South 87 degrees 52 minutes 19 seconds West, 1311.08 feet (measured South 87 degrees 52 minutes 59 seconds West, 1311.07 feet) along the South line of said Section 28 and the North line of said Section 33 to the South 1/4 post of said Section 28, also being the North 1/4 post of said Section 33; thence South 88 degrees 58 minutes 08 seconds West, 818.99 feet along said South line of Section 28 and North line of Section 33, and, also the Northerly line of Stratford Hills, a condominium, according to the Master Deed dated July 3, 1997, and recorded July 7, 1997, in Liber 1942, on page 297 thru 335, and the First Amendment to the Master Deed recorded August 8, 1997, in Liber 1950, page 348, inclusive and the Second Amendment to the recorded March 31, 1999, in Document 1999-014447, pages 1 to 8 inclusive and designated as Kalamazoo County Condominium Plan No. 94, together with rights in general common elements and limited common element as set forth in above Master Deed and described in Act 59 of Public Acts of 1978, and amendments thereto; thence South 50 degrees 19 minutes 41 Seconds West, 1186.89 feet along a Northwesterly line of said Stratford Hills; thence South 01 degrees 01 minutes 39 seconds East, 1011.60 feet along a Westerly line of said Stratford Hills; thence South 88 degrees 58 minutes 21 seconds West, 883.00 feet along Northerly line of said Stratford Hills to the West line of said Section 33; thence North 01 degrees 01 minutes 39 seconds West, 50.00 feet (measured 50.59 feet) along said West line; thence North 88 degrees 58 minutes 21 seconds East, 833.00 feet (measured North 89 degrees 01 minutes 24 seconds East, 833.31 feet); thence North 01 degrees 01 minutes 39 seconds West, 1049.65 feet (measured North 01 degrees 01 minutes 53 seconds West, 1049.53 feet) to the Southerly line of the Amtrak railroad Right—of—Way (formerly N.Y.C. Railroad); thence North 50 degrees 19 minutes 41 seconds East, 3982.23 feet (measured North 50 degrees 20 minutes 57 seconds East, 3981.51 feet) along said Southerly line of Amtrak to a point on said East line of the West 1/2 of the Southeast 1/4 of Section 28; thence South 00 degrees 53 minutes 47seconds East,

 

 

1144.26 feet (measured South 00 degrees 54 minutes 03 seconds East, 1143.93 feet) along said East line to the Northwest corner of the South 1/2 of the Southeast 1/4 of the Southeast 1/4; thence North 87 degrees 55 minutes 49 seconds East, 1311.77 feet (measured North 87 degrees 55 minutes 18 seconds East, 1311.69 feet) along the North line of said South 1/2 of the Southeast 1/4 of the Southeast 1/4 to the Place of Beginning, ALSO, subject to and together with an easement right—of—way for ingress and egress to be used in common with others over a strip of land 66 feet wide lying 33 feet either side of the following described centerline: Beginning on the East line of said Section 28 at said Southeast corner of the North 1/2 of the South 1/2 of the Southeast 1/4 of the Southeast 1/4 of Section 28, said Place of Beginning lying North 00 degrees 50 minutes 44 seconds West, 330.92 feet from the Southeast corner of said Section 28; thence South 87 degrees 54 minutes 04 seconds West, 1311.49 feet (measured South 87 degrees 54 minutes 04 seconds West, 1311.56 feet) along said South line of the North 1/2 of the South 1/2 of the Southeast 1/4 of the Southeast 1/4 of Section 28 to the Southwest corner of said North 1/2 of said South 1/2 of the Southeast 1/4 of the Southeast 1/4 of Section 28 and the Place of Ending.

 

PERMANENT EASEMENT   MI-KA-130.000:

 

That portion of a proposed 220 foot wide easement being described as follows:

 

Commencing at the Southeast corner of Section 28, also being the Northeast corner of Section 33, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan; thence S89°52’18”W 1358.21 feet along the South line of said Section 28 and the North line of said Section 33 to the POINT OF BEGINNING; thence continuing along said South line and said North line, S89°52’18”W 406.36 feet; thence N60°32’08”W 1203.99 feet; thence N59°02’25”W 17.97 feet to a point on the Southerly Right-of-Way line of Amtrak Railroad (150’ wide); thence N52°19’53”E 238.26 feet along said Southerly Right-of-Way line; thence S60°32’08”E 1471.48 feet; thence S00°44’48”E 22.36 feet to the Point of Beginning.

 

 

MI-KA-170.000

 

LEGAL DESCRIPTION (SUBJECT PARCEL) (PER DOCUMENT NO. 2011-031015)

 

Lot 21 of Block 3 of the Plat of Erie & Gibbs, according to the plat thereof as recorded in Liber 8 of Plats, Page 29, Kalamazoo County, Except the East 17 feet thereof.

 

PERMANENT EASEMENT    MI-KA-170.000:

 

That portion of a proposed 220 foot wide easement being described as follows:

 

Commencing at the East 1/4 corner Section 33, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan; thence N00°56’14”E 1151.15 feet along the East Section line of said Section 33 and the centerline of 6th Street; thence S89°34’39”W 50.01 feet along the South line of Lot 21 of the Plat of Frie & Gibbs, Liber 8 of Plats, page 29, Kalamazoo County Records, to the POINT OF BEGINNING; thence continuing S89°34’39”W along said South line of Lot 21 828.81 feet; thence N83°12’42”W 419.24 feet to a point on the West line of said Lot 21; thence N01°42’10”E 112.34 feet along said West line of Lot 21; thence N89°34’28”E 861.02 feet along the North line of said Lot 21; thence S83°12’42”E 385.37 feet to a point on the West Right-of-Way line of said 6th Street; thence S00°56’14”W 116.59 feet along said Right-of-Way line to the Point of Beginning.

 

 

MI-KA-170.310

 

LEGAL DESCRIPTION (SUBJECT PARCEL) (PER DOCUMENT NO. 2011-031017)

 

Property situated in Township of Oshtemo, County of Kalamazoo, State of Michigan, described as follows:

 

Lots 5 through 7 of Block 3; the West 30 feet of Lot 4 of Block 3, except the North 290 feet of the West 30 feet of Lot 4 of Block 3, all of the Plat of Frie & Gibbs, according to the plat thereof as recorded in Liber 8 of Plats, Page 29, Kalamazoo County Records.

 

PERMANENT EASEMENT MI-KA-170.310:

 

That portion of a proposed 220 foot wide easement being described as follows:

 

Commencing at the East 1/4 corner Section 33, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan; thence N00°56’14”E 1151.15 feet along the East line of said Section 33 and the center line of 6 Street; thence S89°34’39”W 647.72 feet to the Northeast corner of Lot 5, Frie & Gibbs, as recorded in Liber 8 of plats, page 29, Kalamazoo County Records, said point being the POINT OF BEGINNING; thence S01°26’13”W 29.13 feet along the East line of said Lot 5; thence N83°12’42”W 232.00 feet; thence N89°34’39”E 231.11 feet along the North line of said Lots 5 and 6 to the Point of Beginning.

 

 

MI-KA-180.000

 

LEGAL DESCRIPTION (SUBJECT PARCEL) (PER LIBER 2050, PG. 1291)

 

The North 290.00 feet of Lots 1, 2, 3 and 4 of Block 3 of the Plat of Frie & Gibbs, according to the plat thereof as recorded in Liber 8 of Plats, Page 29, Kalamazoo County Records except the East 17.00 feet of Lot 1. Also being described as: Commencing at the East 1/4 corner of Section 33, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan; thence North 01 degrees 03 minutes 18 seconds West along the East line of Section 33, 1,151.14 feet; thence South 87 degrees 35 minutes 59 seconds West 33.01 feet to the Northeast corner of Lot 1 Block 3 of the Plat of Erie and Gibbs as recorded in Liber 8 of Plats, Page 29, Kalamazoo County Records; thence continuing South 87 degrees 35 minutes 59 seconds West along the North line of Lot 1 of said plat 17.00 feet for the place of beginning of the land hereinafter described: thence continuing South 87 degrees 35 minutes 59 seconds West along the North line of Lots 1, 2, 3 and 4 of said Plat, 597.70 feet to the Northwest corner of said Lot 4; thence South 00 degrees 33 minutes 19 seconds East along the West line of said Lot 4 290.07 feet; thence North 87 degrees 35 minutes 59 seconds East 600.23 feet; thence North 01 degrees 03 minutes 18 seconds West 290.00 feet to the place of beginning.

 

PERMANENT EASEMENT   MI-KA-180.000:

 

That portion of a proposed 220 foot wide easement being described as follows:

 

Commencing at the East 1/4 corner Section 33, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan; thence N00°56’14”E 1151.15 feet along the East Section line of said Section 33 and the centerline of 6th Street; thence S89°34’39”W 50.01 feet to the POINT OF BEGINNING; thence S00°56’14”W 104.57 feet along the West Right-of-Way line of 6th Street; thence N83°12’42”W 600.92 feet to a point on the West line of Lot 4 of the Plat of Frie & Gibbs, Liber 8 of Plats, page 29, Kalamazoo County Records; thence N01°26’13”E 29.13 feet along said West line of Lot 4; thence N89°34’39”E 597.70 feet along the North line of Lots 1, 2, 3 and 4 of said Frie and Gibbs to the Point of Beginning.

 

 

MI-KA-220.500

 

LEGAL DESCRIPTION (SUBJECT PARCEL)

 

A strip of land 150 feet in width being 75 feet on each side of the center line as originally staked out across the Southeast 1/4 of Section 34, T2S, R12W, Oshtemo Township, Kalamazoo County, Michigan, as described in Liber 236, Page 502, Kalamazoo County Records.

 

PERMANENT EASEMENT   MI-KA-220.500:

 

That part of a permanent 220 foot wide easement being described as follows:

 

Commencing at the East 1/4 corner of Section 34, T2S, R12W, Oshtemo Township, Kalamazoo County, Michigan; thence S00°59’03”W 134.81 feet along the East line of said Section 34 to the South line of a 150.00 foot wide AT&T easement as recorded in Liber 236, page 502 Kalamazoo County Records; thence 497.63 feet along the arc of a 7623.42 foot radius, circular curve to the right, having a chord bearing and distance of S66°05’17”W 497.54 feet to the POINT OF BEGINNING; thence continuing along said South line 669.25 feet along the arc of a 7623.42 foot radius, circular curve to the right, having a chord bearing and distance of S70°28’23”W 669.03 feet; thence S89°40’20”W 463.95 feet; thence N84°48’04”W 78.39 feet; thence N74°50’40”E 275.04 feet; thence 493.91 feet along the arc of a 7473.42 foot radius, circular curve to the left, having a chord bearing and distance of N72°57’04”E 493.82 feet; thence N89°40’20”E 434.99 feet to the Point of Beginning.

 

 

MI-KA-240.500

 

LEGAL DESCRIPTION (SUBJECT PARCEL) (Per Liber 1576, Page 0063)

 

All that part of the East half of the Southeast quarter of Section thirty—four (34), Town two (2) South, Range twelve (12) West lying South of the Michigan Central Railroad, now the right—of—way of the American Telephone and Telegraph Company, except the East seven hundred (700) feet and except the West three hundred fifty (350) feet thereof, and except the South two hundred ninety (290) feet thereof, consisting of 12 acres more or less.

 

PERMANENT EASEMENT   MI-KA-240.500:

 

That portion of a proposed 220 foot wide easement being described as follows:

 

Commencing at the Southeast corner of Section 34, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan; thence N89°35’21”W 700.00 feet along the South line of said Section 34 and the centerline of West N Avenue; thence N00°59’04”E 2066.20 feet to the POINT OF BEGINNING; thence S89°40’20”W 264.17 feet; thence N00°58’57”E 35.37 feet to a point on the South line of AT&T Right-of-Way (150 feet wide); thence along said South Right-of-Way line, 280.99 feet along a 7623.42 foot radius non-tangential circular curve to the left, having a chord which bears N71°01’48”E 280.97 feet; thence S00°59’04”W 125.21 feet to the Point of Beginning.

 

 

MI-KA-250.500

 

LEGAL DESCRIPTION (SUBJECT PARCEL) (Per Liber 1027, Pages 1232 & 1233)

 

The West 200 feet of the East 400 feet of the Southeast quarter of Section 34, lawn 2 South, Range 12 West, lying South of the right—of—way of the Michigan Central Railroad (now right—of—way of the American Telephone and Telegraph Company) except that part described as: a parcel of land in the Southeast quarter of Section 34, Town 2 South, Range 12 West Oshtemo Township, Kalamazoo County, Michigan, being more particularly described as follows: Commencing at the Southeast corner of Section 34, Town 2 South, Range 12 West; thence West 200.00 feet along the South line of said Section to the Place of Beginning; thence continuing West 120.00 feet along said Section South line; thence NO°38’36”E 33.00 feet parallel with the East line of said Section; thence N3°41’00”E 113.00 feet; l hence N22°30’54”E 71.27 feet; thence 585°01’30”E 87.68 feet; thence SO°38’36”W 204.06 feet to the Place of Beginning. The South 33.00 feet being subject to highway easements.

 

The West 300 feet of the East 700 feet of the Southeast quarter of Section 34, Town 2 South, Range 12 West, lying South of the right—of—way of the Michigan Central Railroad (now right—of—way of the American Telephone and Telegraph Company) except the Southerly 290 feet thereof.

 

PERMANENT EASEMENT    MI-KA-250.500:

 

That portion of a proposed 220 foot wide easement being described as follows:

 

Commencing at the Southeast corner of Section 34, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan; thence N89°35’21”W 320.00 feet along the South line of said Section 34 and the centerline of West N Avenue; thence N00°59’03”E 33.00 feet; thence N04°01’54”E 113.00 feet; thence N22°52’36”E 121.19 feet; thence S86°30’20”E 68.87 feet; thence N00°59’03”E 1818.58 feet to the POINT OF BEGINNING; thence S89°40’20”W 500.10 feet; thence N00°59’04”E 125.21 feet to a point on the South line of AT&T Right-of-Way (150 feet wide); thence along said South Right-of-Way, 268.23 feet along a 7623.42 foot radius non-tangential circular curve to the left, having a chord which bears N68°57’58”E 268.22 feet; thence N89°40’20”E 251.38 feet; thence S00°59’03”W 220.07 feet to the Point of Beginning.

 

 

MI-KA-270.500

 

LEGAL DESCRIPTION (SUBJECT PARCEL) (PER DOCUMENT NO. 2003-063642)

 

Land in Township of Oshtemo, Kalamazoo County, Michigan, described as follows:

 

A parcel of land located in Section 35, more particularly described as follows: Commencing at the Southwest corner of Section 35, Town 2 South, Range 12 West; thence North 00°18’25” East along the West line of the recorded plat of “TWELVE OAKS NO. 1”, Liber 30 of Plats, page(s) 15 of Kalamazoo County Records and along the West line of said Section 35, 1537.73 feet for a Place of Beginning of the land hereinafter described; thence South 60°56’23” East 388.59 feet; thence along a curve to the right, 21.15 feet with a central angle and radius of 02°47’53”, 433,00 feet and a chord bearing and length of North 18°36’04” East, 21.14 feet; thence North 20°00’00”E, 72.65 feet, thence along a curve to the right, 166.53 feet with a central angle and radius of 127°12’56” 75.00 feet and a chord bearing and length of North 19°42’42” East, 134.37 feet; thence North 18°42’11” East, 775.53 feet; thence South 89°56’40” West, 661.19 feet to the West line of said Section 35; thence South 00°18’25” West thereon, 760.00 feet to the place of beginning.

 

PERMANENT EASEMENT    MI-KA-270.500:

 

That portion of a proposed 220 foot wide easement being described as follows:

 

Commencing at the Southwest corner Section 35, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan; thence N00°59’03”E 2075.23 feet along the West line of said Section 35 and the West line of the recorded plat “TWELVE OAKS NO.1”, Liber 30 of Plats, page 15 of the Kalamazoo County Records to the POINT OF BEGINNING; thence continuing along said West line(s), N00°59’03”E 220.00 feet; thence N89°40’20”E 17.53 feet; thence S89°26’27”E 643.19 feet; thence S19°22’49”W 232.44 feet; thence N89°26’27”W 566.50 feet; S89°40’20”W 20.86 feet to the Point of Beginning.

 

 

MI-KA-290.500

 

LEGAL DESCRIPTION (SUBJECT PARCEL) (PER LIBER 2004-037379)

 

The following described premises situated in the Township of Oshtemo, Kalamazoo County, Michigan to wit:

 

A parcel of land located in Section 35, being more particularly described as follows: Commencing at the Southwest corner of Section 35, Town 2 South, Range 12 West; thence North 000 8’25” East along the West line of the recorded plat of “TWELVE OAKS NO. 1”, Liber 30 of Plats, page 15 of Kalamazoo County Records, and along the West line of said Section 35, 2297.73 feet; thence North 89 degrees 56’ 40” East 1316.9 feet; to the East line of the West 1/2 of the Southwest 1/4 of said Section 35; thence South 000 9’27” West thereon, 300,00 feet for the Place of Beginning of the land hereinafter described; thence South 56°06’30” West 1025.71 feet; thence along a curve to the right, 36.37 feet with a central angle and radius of 27°47’16”, 75.00 and a chord bearing and length of South 70°00’08” West, 36.02 feet; thence South 20°00’00” West, 72.65 feet; thence along a curve to the left, 9801 feet with a central angle and radius of 15°8’59”, 367.00 feet and a chord bearing and length of South 12°20’30” West, 97.82 feet; thence South 81 °53’42” East, 935.41 feet to the East line of the West 1/2 of the Southwest 1/4 of said Section 35; thence North 000 9’27” East thereon, 880.00 feet; to the Place of Beginning.

 

PERMANENT EASEMENT   MI-KA-290.500:

 

That portion of a proposed 220 foot wide easement being described as follows:

 

Commencing at the Southwest corner Section 35, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan; thence N00°59’03”E 2298.21 feet along the West line of said Section 35 and the West line of the recorded plat “TWELVE OAKS NO.1”, Liber 30 of Plats, page 15 of the Kalamazoo County Records; thence S89°25’19”E 1315.95 feet to a point on the East line of the West 1/2 of the Southwest 1/4 of said Section 35; thence S00°59’55”W 301.63 feet along said East line to the POINT OF BEGINNING; thence continuing S00°59’55”W along said East line, 304.53 feet; thence N33°22’07”W 251.83 feet; thence N56°47’08”E 171.90 feet to the Point of Beginning.

 

 

MI-KA-300.500

 

LEGAL DESCRIPTION (SUBJECT PARCEL) (PER DOCUMENT NO. 2007-044078)

 

The land referred to in this Commitment, situated in the County of Kalamazoo, Township of Oshtemo, State of Michigan, is described as follows:

 

The North 7 1/2 acres of the South 15 acres of the Northeast 1/4 of the Southwest 1/4, except the East 50.00 feet, more particularly described as: Commencing at the South 1/4 post of Section 35, Town 2 South, Range 12 West; thence North 0 degrees 20 minutes 23 seconds East along the North and South 1/4 line of said Section 1564.56 feet, thence South 89 degrees 58 minutes 12 seconds West 50 feet for the place of beginning of the land hereinafter described; thence South 89 degrees 58 minutes 12 seconds West 1266.00 feet to the West line of the East 1/2 of the Southwest 1/4 of said Section; thence North 0 degrees 19 minutes 27 seconds East thereon 248.26 feet; thence North 89 degrees 58 minutes 12 seconds East 1266.07 feet; thence South 0 degrees 02 minutes 23 seconds West thereon 248.26 feet to the place of beginning.

 

PERMANENT EASEMENT    MI-KA-300.500:

 

That portion of a proposed 220 foot wide easement being described as follows:

 

Commencing at the South 1/4 corner of Section 35, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan; thence N01°00’46”E 1564.36 feet along the North-South 1/4 line of said Section 35 and the centerline of 9th Street (50 feet wide, half width); thence N88°59’14”W 50.00 feet to a point on the West Right-of-Way line of said 9th Street; thence N89°21’54”W 911.54 feet to the POINT OF BEGINNING; thence continuing N89°21’54”W 265.40 feet; thence N33°22’07”W 157.35 feet to a point on the West line of the Northeast 1/4 of the Southwest 1/4 of said Section 35; thence N00°59’55”E 117.86 feet along said West line; thence S89°21’54”E 185.14 feet; thence S33°22’07”E 299.51 feet to the Point of Beginning.

 

 

MI-KA-325.500

 

LEGAL DESCRIPTION (SUBJECT PARCEL) (PER DOCUMENT NO. 2006-049858)

 

Commencing at the South 1/4 quarter post of Section 35, Town 2 South, Range 12 West, thence North 0°19’40” East along the 1/4 line, 1562.23 feet to the POINT OF BEGINNING; thence South 89°40’20” East and at right angle to said 1/4 line 165.00 feet; thence North 0°19’40” East parallel to said 1/4 line 132.00 feet; thence South 89°40’20” East 1152.82 feet to the point on the North and South 1/8th line of the Southwest 1/4 of said Section 35; thence South 0°18’45” West along said 1/8th line 369.84 feet to the Southeast corner of the Northwest 1/4 of the Southeast 1/4 if said Section 35; thence South 89°58’30” West along the South line of said Northwest 1/4 of the Southeast 1/4 1317.93 feet to a point on the North and South 1/4 line of said Section 35; thence North 0°19’40” East along said North and South 1/4 line 245.83 feet to the point of beginning.

 

PERMANENT EASEMENT    MI-KA-325.500:

 

That portion of a permanent 220 foot wide easement being described as follows:

 

Commencing at the South 1/4 corner of Section 35, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan; thence N01°00’46”E 1316.39 feet along the North-South 1/4 line of said Section 35 and the centerline of 9th Street (50.00 foot half width); thence S89°20’38”E 50.00 feet to a point on the East Right-of-Way line of said 9th Avenue and the POINT OF BEGINNING; thence N01°00’46”E 106.19 feet along said East Right-of-Way line; thence N87°00’26”E 1259.87 feet; thence N89°32’52”E 11.01 feet to a point on the North-South 1/8th line of said Section 35; thence S00°59’41”W 186.58 feet along said North-South 1/8th line to the Southeast corner of the Northwest 1/4 of the Southeast 1/4 of said Section 35; thence N89°20’38”W 1267.88 feet along the South line of said Northwest 1/4 of the Southeast 1/4 to the Point of Beginning.

 

 

MI-KA-335.500

 

LEGAL DESCRIPTION (SUBJECT PARCEL) (PER DOCUMENT NO. 2013007023):

 

Land situated in the Township of Oshtemo, County of Kalamazoo, State of MI described as follows:

 

Unit Nos. 3 and 4 ,Oshtemo Business Park, a Condominium according to the Master Deed recorded in Document No.2002-035031, inclusive and amendments there to Kalamazoo County Records, and designated as Kalamazoo County Condominium Subdivision Han No. 147, together with rights in General Common Elements and Limited Common Elements as set forth in the above Master Deed and as described in Act 59 of the Public Acts of 1978, as amended.

 

PERMANENT EASEMENT    MI-KA-335.500:

 

That portion of 220 foot wide easement being described as follows:

 

Commencing at the South 1/4 corner of Section 35, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan; thence N01°00’46”E 1316.39 feet along the North-South 1/4 line of said Section 35 and the centerline of 9th Street (50.00’ half width) to a point on the North line of the South 1/2 of the Southeast 1/4 of said Section 35; thence S89°20’27”E 973.95 feet along said North line to the Northwest corner of UNIT 3 of OSHTEMO BUSINESS PARK as recorded in Document No. 2002-035031, in the Public Records of Kalamazoo County, Michigan and the POINT OF BEGINNING; thence continuing S89°20’27”E 400.00 feet along the North line of said UNIT 3 and UNIT 4 to the Northeast corner of UNIT 4; thence S01°00’29”W 32.35 feet along the East line of said UNIT 4; thence S89°32’52”W 56.65 feet; thence S87°00’26”W 344.20 feet to a point on the West line of said UNIT 3; thence N01°00’29”E 55.37 feet along the West line of said UNIT 3 to the Point of Beginning.

 

 

MI-KA-340.320

 

LEGAL DESCRIPTION (SUBJECT PARCEL) (PER DOCUMENT NO. 2008-039421)

 

Unit No. 6, Oshtemo Business Park, a Condominium according to the Master Deed recorded in Document No. 2002-035031, Kalamazoo County Records, and designated as Kalamazoo County Condominium Subdivision Han No. 147, and any amendments thereto, together with an undivided interest in the common elements of said condominium as set forth in said Master Deed, and any amendments thereto, last amendment recorded in Instrument No. 2009-025033 and as described in Act 59 of the Public Acts of MI of 1978, as amended.

 

PERMANENT EASEMENT     MI-KA-340.320:

 

That portion of a permanent 220 foot wide easement being described as follows:

 

Commencing at the South 1/4 corner of Section 35, Town 2 South, Range 12 West, Oshtemo Township, Kalamazoo County, Michigan; thence N01°00’46”E 1316.39 feet along the North-South 1/4 line of said Section 35 and the centerline of 9th Street (50.00’ half width) to a point on the North line of the South 1/2 of the Southeast 1/4 of said Section 35; thence S89°20’27”E 1664.30 feet along said North line to the Northwest corner of UNIT 6 of OSHTEMO BUSINESS PARK as recorded in Document No. 2002-035031, inclusive and any amendments thereto, in the Public Records of Kalamazoo County, Michigan and the POINT OF BEGINNING; thence continuing S89°20’27”E 268.50 feet along the North line of said UNIT 6 to the Northeast corner of said UNIT 6 and a point on the West line of Industry Drive (66.00 feet wide); thence S00°39’15”W 21.50 feet along the East line of said UNIT 6 and said West line of said Industry Drive; thence S89°32’52”W 268.71 feet to a point on the West line of said UNIT 6; thence N01°00’29”E 26.72 feet along the West line of said UNIT 6 to the Point of Beginning.

 

 

STRAHAN PARCEL 14-130-008-00

 

LEGAL DESCRIPTION SUBJECT PARCEL

 

The Northwest 1/4 of the Northwest 1/4 and the South half of the Northwest 1/4 of Section 30, Town 7 South, Range 6 East.

 

PERMANENT EASEMENT DESCRIPTION OF A 220 FOOT WIDE EASEMENT STRIP LOCATED IN THE NORTHWEST 1/4 OF SECTION 30, T7S, R6E, SUMMERFIELD TOWNSHIP, MONROE COUNTY, MICHIGAN:

 

Commencing at the West 1/4 Corner of Section 30, T7S, R6E, Summerfield Township, Monroe County, Michigan; thence N88°40’32”E 1601.65 feet along the East-West 1/4 line of said Section 30 for a PLACE OF BEGINNING; thence N45°29’40”E 1095.45 feet; thence S72°27’34”E 93.07 feet; thence S35°58’29”E 139.33 feet; thence S45°29’40”W 883.98 feet along the Northwesterly line of Detroit, Toledo & Ironton Railroad (100 feet wide); thence S88°40’32”W 321.49 feet along the East-West 1/4 line of said Section 30 to the Place of Beginning.

 

 

WALTER PARCEL 14-130-012-10

 

LEGAL DESCRIPTION SUBJECT PARCEL:

 

All that part of the West 1/2 of the Southwest fractional 1/4 of Section 30, Town 7 South, Range 6 East, described as commencing at the West 1/4 corner of said Section 30, and running North 89 degrees 09 minutes 51 seconds East along the East and West 1/4 line of Section 30, 1,445.33 feet; thence South 00 degrees 51 minutes 03 seconds East along the East line of said West 1/2 of the Southwest 1/4 of Section 30, 448.28 feet; thence South 45 degrees 58 minutes 55 seconds West along the Northerly line of the Detroit, Toledo & Ironton Railroad 1,970.58 feet; thence North 01 degrees 06 minutes 04 seconds West along the West line of Section 30, 496.60 feet; thence North 88 degrees 53 minutes 56 seconds, 208.74 feet; thence North 01 degrees 06 minutes 04 seconds West, 333.74 feet; thence South 88 degrees 53 minutes 56 seconds West, 208.74 feet; thence North 01 degrees 06 minutes 04 seconds West along the West line of Section 30, 914.54 feet to the East 1/4 corner of Section 25, Town 7 South, Range 5 East; thence North 01 degrees 20 seconds 49 seconds West along the West line of Section 30, 52.00 feet to the place of beginning.

 

PERMANENT EASEMENT DESCRIPTION OF A 220 FOOT WIDE EASEMENT STRIP LOCATED IN THE SOUTHWEST 1/4 OF SECTION 30, T7S, R6E,

 

SUMMERFIELD TOWNSHIP, MONROE COUNTY, MICHIGAN:

 

BEGINNING at the West 1/4 Corner of Section 30, T7S, R6E, Summerfield Township, Monroe County, Michigan; thence N88°40’32”E 1445.33 feet along the East-West 1/4 line of said Section 30; thence S01°20’22”E 220.00 feet along the East line of the West 1/2 of the Fractional Southwest 1/4 of said Section 30; thence S88°40’32”W 1444.14 feet; thence N01°35’27”W 168.00 feet along the West line of said Section 30 to the East 1/4 corner of Section 25, T7S, R5E, Deerfield Township, Lenawee County, Michigan; thence N01°50’06”W 52.00 feet along the West line of said Section 30 to the Place of Beginning.

 

 

Exhibit B

 

SUBORDINATION TERMS

 

The unsecured permitted indebtedness evidenced by this instrument is subordinated and subject in right of payment to the prior payment in full of all Senior Debt Obligations (as hereinafter defined) of Michigan Electric Transmission Company, LLC, a limited liability company formed under the laws of the State of Michigan (the “Company”).  Each holder of this instrument, by its acceptance hereof, agrees to and shall be bound by all the provisions hereof.

 

All capitalized terms used herein and not otherwise defined herein shall have the meanings attributed to them in the Eighth Supplemental Indenture, dated as of March 31, 2016 (as in effect on the date hereof, the “Supplemental Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A. (as successor to JPMorgan Chase Bank, N.A.), as trustee (the “Trustee”).

 

The term “Senior Debt Obligations”, as used herein, shall include all, loans, advances, debts, liabilities and obligations, howsoever arising (whether or not evidenced by any note or instrument and whether or not for the payment of money), direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising (collectively, as used herein, “Obligations”) of the Company now or hereafter existing in respect of Senior Debt (as defined herein) and any amendments, modifications, deferrals, renewals or extensions of any such Senior Debt, or of any notes or evidences of indebtedness heretofore or hereafter issued in evidence of or in exchange for any such Obligation, whether for principal, interest (including interest payable in respect of any such Obligations subsequent to the commencement of any proceeding against or with respect to the Company under any chapter of the Bankruptcy Code, 11 U.S.C. § 101 et seq. (the “Bankruptcy Code”), or any provision of corresponding bankruptcy, insolvency or commercial reorganization legislation of any other jurisdiction, whether or not such interest is an allowed claim enforceable against the debtor, and whether or not the holder of such obligation would be otherwise entitled to receive dividends or payments with respect to any such interest or any such proceeding), premium (including Make-Whole Amount), if any, fees, expenses or otherwise.

 

The term “Senior Debt”, as used herein, shall mean (i) all Senior Secured Debt and (ii) all unsecured Debt of the Company permitted to be incurred by the Company pursuant to the Mortgage Indenture or the Supplemental Indenture which is not subject to any subordination terms whether or not similar to those set forth in this instrument.

 

The term “Subordinated Debt”, as used herein, shall mean all Obligations of the Company evidenced by this instrument owing to any Person now or hereafter existing hereunder (whether created directly or acquired by assignment or otherwise), whether for principal, interest (including, without limitation, interest accruing after the filing of a petition initiating any bankruptcy proceeding described in the definition of Senior Debt Obligations, whether or not such interest accrues after the filing of such petition for purposes of the Bankruptcy Code or is an allowed claim in such proceeding), fees, expenses or otherwise.

 

On and after the Closing Date, no payment on account of principal, interest, fees, premium, expenses or otherwise on this Subordinated Debt shall be made by the Company in cash or otherwise unless (a) full payment of all amounts then due and payable on all Senior Debt Obligations has been made, (b) such payment would be permitted by the Indenture and any Senior Debt Document (as defined below) and (c) immediately after giving effect to such payment, there shall not exist any Default or Event of Default.  Any such payment permitted pursuant to this paragraph is hereinafter referred to as a “Permitted Payment”.  For the purposes of these provisions, no Senior Debt Obligations shall be deemed to have

 

Ex. B-1

 

been paid in full until the obligee of such Senior Debt Obligations shall have received payment in full in cash.

 

Upon any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to creditors upon any dissolution or winding up or total or partial liquidation or reorganization of the Company, whether voluntary or involuntary or in bankruptcy, insolvency, receivership or other proceedings, then and in any such event all principal, premium and interest and all other amounts due or to become due upon all Senior Debt Obligations shall first be paid in full before the holders of the Subordinated Debt shall be entitled to retain any assets so paid or distributed in respect of the Subordinated Debt (whether for principal, premium, interest or otherwise), and upon any such dissolution or winding up or liquidation or reorganization, any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to which the holders of the Subordinated Debt would be entitled, except as otherwise provided herein, shall be paid pro rata among the holders of Senior Debt Obligations by the Company or by any receiver, trustee in bankruptcy, liquidating trustee, agent or other Person making such payment or distribution, or by the holders of the Subordinated Debt if received by them.  So long as any Senior Debt Obligations are outstanding, the holder of this instrument shall not commence, or join with any creditor other than the Trustee or the Senior Debt Parties (as hereinafter defined) in commencing, or directly or indirectly causing the Company to commence, or assist the Company in commencing, any proceeding referred to in the preceding sentence.

 

The holder of this instrument hereby irrevocably authorizes and empowers (without imposing any obligation on) each Person (each such Person a “Senior Debt Party” and collectively, the “Senior Debt Parties”) that has entered into an agreement, instrument, or other document evidencing or relating to any Senior Debt Obligation (each such agreement, instrument or other document, a “Senior Debt Document”) as a lender or creditor and such Senior Debt Party’s representatives, under the circumstances set forth in the immediately preceding paragraph, to demand, sue for, collect and receive every such payment or distribution described therein and give acquittance therefor, to file claims and proofs of claims in any statutory or nonstatutory proceeding, to vote such Senior Debt Party’s ratable share of the full amount of the Subordinated Debt evidenced by this instrument in its sole discretion in connection with any resolution, arrangement, plan of reorganization, compromise, settlement or extension and to take all such other action (including, without limitation, the right to participate in any composition of creditors and the right to vote such Senior Debt Party’s ratable share of the full amount of the Subordinated Debt at creditors’ meetings for the election of trustees, acceptances of plans and otherwise), in the name of the holder of the Subordinated Debt evidenced by this instrument or otherwise, as such Senior Debt Party’s representatives may deem necessary or desirable for the enforcement of the subordination provisions of this instrument.  The holder of this instrument shall execute and deliver to each Senior Debt Party and such holder’s representatives all such further instruments confirming the foregoing authorization, and all such powers of attorney, proofs of claim, assignments of claim and other instruments, and shall take all such other action as may be reasonably requested by such holder or such holder’s representatives in order to enable such holder to enforce all claims upon or in respect of such holder’s ratable share of the Subordinated Debt evidenced by this instrument.

 

The holder of this instrument shall not, without the prior written consent of the Senior Debt Parties, have any right to accelerate payment of, or institute any proceeding to enforce, the Subordinated Debt so long as any Senior Debt Obligations are outstanding, unless and until all Senior Debt Parties have accelerated payment thereof and commenced proceedings to enforce such Senior Debt Obligations.

 

After the payment in full of all amounts due in respect of Senior Debt Obligations, the holder or holders of the Subordinated Debt shall be subrogated to the rights of the Senior Debt Parties to receive payments or distributions of cash, property or securities of the Company applicable to Senior Debt Obligations until

 

Ex. B-2

 

the principal of, premium on, interest on and all other amounts due or to become due with respect to the Subordinated Debt shall be paid in full subject to the terms and conditions of the Subordinated Debt or of any agreement among the holders of the Subordinated Debt and other Subordinated Debt of the Company.

 

If any payment (other than a Permitted Payment) or distribution of assets of the Company of any kind or character, whether in cash, property or securities, shall be received by the holder of the Subordinated Debt in such capacity before all Senior Debt Obligations are paid in full, such payment or distribution will be held in trust for the benefit of, and shall be immediately paid over pro rata among the Senior Debt Parties, for application to the payment in full of Senior Debt Obligations, until all Senior Debt Obligations shall have been paid in full.

 

Nothing contained in this instrument is intended to or shall impair as between the Company, its creditors (other than the Senior Debt Parties) and the holders of the Subordinated Debt, the obligations of the Company to pay to the holders of the Subordinated Debt, as and when the same shall become due and payable in accordance with their terms, or to affect the relative rights of the holders of the Subordinated Debt and creditors of the Company (other than the Senior Debt Parties).

 

The Senior Debt Parties shall not be prejudiced in their rights to enforce the subordination contained herein in accordance with the terms hereof by any act or failure to act on the part of the Company.

 

The holder of this instrument agrees to execute and deliver such further documents and to do such other acts and things as the Senior Debt Parties may reasonably request in order fully to effect the purposes of these subordination provisions.  Each holder of this instrument by its acceptance hereof authorizes and directs the trustee or other representative, if any, of the Subordinated Debt represented by this instrument on its behalf to take such further action as may be necessary to effectuate the subordination as provided herein and appoints such trustee or other representative, if any, as its attorney-in-fact for any and all such purposes.

 

The subordination effected by these provisions, and the rights of the Senior Debt Parties, shall not be affected by (i) any amendment of, or addition or supplement to, the Financing Agreements, any other Senior Debt Document, or any other document evidencing or securing Senior Debt Obligations, (ii) any exercise or non-exercise of any right, power or remedy under or in respect to the Financing Agreements, any other Senior Debt Document, or any other document evidencing or securing Senior Debt Obligations or (iii) any waiver, consent, release, indulgence, extension, renewal, modification, delay, or other action, inaction or omission, in respect of the Financing Agreements, any other Senior Debt Document, or any other document evidencing or securing Senior Debt Obligations; whether or not any holder of any Subordinated Debt shall have had notice or knowledge of any of the foregoing.

 

No failure on the part of any Senior Debt Party to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor all any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right.  The remedies herein provided are cumulative and not exclusive of any remedies provided by Law.

 

The holder of this instrument and the Company each hereby waive promptness, diligence, notice of acceptance and any other notice with respect to any of the Senior Debt Obligations and these terms of subordination and any requirement that the Trustee or any Senior Debt Party protect, secure, perfect or insure any Lien or any property subject thereto or exhaust any right to take any action against the Company or any other Person or any Mortgaged Property.

 

These terms of subordination shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Senior Debt Obligations is rescinded or must otherwise be returned by the

 

Ex. B-3

 

Trustee or any Senior Debt Party upon the insolvency, bankruptcy or reorganization of the Company or otherwise, all as though such payment had not been made.

 

The provisions of these terms of subordination constitute a continuing agreement and shall (i) remain in full force and effect until the indefeasible payment in full of the Senior Debt Obligations and the termination or expiration of all obligations to extend credit under the Senior Debt Documents, (ii) be binding upon the holder of this instrument, the Company and its successors, transferees and assignees and (iii) inure to the benefit of, and be enforceable by, the Trustee and each Senior Debt Party.  Without limiting the generality of the foregoing clause (iii), each Senior Debt Party may assign or otherwise transfer all or any portion of its rights and obligations under all or any of the Senior Debt Documents to any other Person (to the extent permitted by the Senior Debt Documents), and such other Person shall thereupon become vested with all the rights in respect thereof granted to such Senior Debt Party herein or otherwise.

 

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

 

Ex. B-4

 

Exhibit C

 

THIS NOTE HAS NOT BEEN REGISTERED PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR PURSUANT TO THE SECURITIES LAWS OF ANY STATE.  ACCORDINGLY, THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED (1) EXCEPT IN ACCORDANCE WITH AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR (2) UNLESS THIS NOTE IS REGISTERED UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

MICHIGAN ELECTRIC TRANSMISSION COMPANY, LLC

3.90% Senior Secured Note due 2046

 

Original Interest Accrual Date:  April 26, 2016

Stated Maturity:  April 26, 2046

Interest Rate:  3.90% per annum

Interest Payment Dates: April 26 and October 26

Regular Record Dates:  April 11 and October 11

 

This Note is not an Original Issue Discount Security
 within the meaning of the within-mentioned Indenture.  
 This Note is a Debt Security within the 
 meaning of the within-mentioned Indenture.

 

 

	
Registered No. [RA   - ]
    	
April 26, 2016
    
	
$[                     ](1)
    	
PPN   [       ]
    

 

MICHIGAN ELECTRIC TRANSMISSION COMPANY, LLC, a limited liability company duly organized and existing under the laws of the State of Michigan (herein called the “Company”, which term includes any Successor Corporation under the Indenture referred to below), for value received, hereby promises to pay to [                     ], or its registered assigns, the principal sum of [                                     ] DOLLARS ($      ) on the Stated Maturity specified above, and to pay interest (a) thereon from the Original Interest Accrual Date specified above or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually in arrears on the Interest Payment Dates specified above in each year, commencing on October 26, 2016 and at Maturity, at the Interest Rate per annum specified above, until the principal hereof is paid or duly provided for and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest and any overdue payment of any Make-Whole Amount, at a rate per annum from time to time equal to the greater of (i) 5.90% and (ii) 2.0% over the rate of interest publicly announced by JPMorgan Chase Bank, N.A. from time to time in New York, New York as its “base” or “prime” rate.  The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date shall, as provided in such Indenture, be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date specified above (whether or not a Business Day) next preceding such Interest Payment Date.  Notwithstanding the foregoing, interest payable at Maturity shall be paid to the Person to whom principal shall be paid.  Except as otherwise provided in said Indenture, any such interest not so timely paid or duly provided for shall forthwith cease to be payable to the Noteholder on such Regular Record Date and may either be paid

 

(1)           Reference is made to Schedule A attached hereto with respect to the amount of principal paid hereon and the last date to which interest has been paid hereon.

 

Ex. C-1

 

to the Person in whose name this Note (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 of which shall be given to the Noteholders 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 or automated quotation system on which the Securities of this series may be listed, and upon such notice as may be required by such exchange or automated quotation system, all as more fully provided in said Indenture.

 

CERTIFICATE OF AUTHENTICATION

 

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

 

	
Date of Authentication:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
The Bank of New York   Mellon Trust Company, N.A. as Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized Officer
    

 

Capitalized terms used in this Note and not otherwise defined herein shall have the meaning assigned to such term in the Indenture.

 

Subject to the home office payment obligation set forth in Section 2.02(b) of the Supplemental Indenture (referred to below), payment of the principal of and Make-Whole Amount, if any, on this Note and interest hereon at Maturity shall be made upon presentation of this Note at the office or agency of the Trustee in New York, New York at c/o The Bank of New York Mellon, Trust Services Window, 101 Barclay Street, New York, New York 10286, or at such other office or agency as may be designated for such purpose by the Company from time to time in accordance with the Indenture.  Subject to the home office payment obligation set forth in Section 2.02(b) of the Supplemental Indenture, payment of interest on this Note (other than interest at Maturity) shall be made as set forth in Section 307 of the Original Indenture (as defined below).  Payment of the principal of and Make-Whole Amount, if any, and interest on this Note, as aforesaid, shall be made in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts.

 

This Note is one of a duly authorized issue of securities of the Company (all such series of securities herein called the “Securities”) issued and issuable in one or more series under and equally secured by a First Mortgage Indenture, dated as of December 10, 2003 (such indenture as originally executed and delivered herein called the “Original Indenture” and as supplemented and modified by any and all indentures supplemental thereto, including the Supplemental Indenture referred to below, being herein called the “Indenture”), and has been issued pursuant to that certain Eighth Supplemental Indenture, dated as of March 31, 2016 (the “Supplemental Indenture”), each of the Indenture and the Eighth Supplemental Indenture being between the Company and The Bank of New York Mellon Trust Company, N.A. (as successor to JPMorgan Chase Bank, N.A.), as trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture reference is hereby made for a description of the property mortgaged, pledged and held in trust as security for payment of all amounts due under this Note, the nature and extent of the security and the respective rights, limitations of rights, duties and immunities of the Company, the Trustee and the Holders of the Securities thereunder and of the terms and

 

Ex. C-2

 

conditions upon which the Securities (including the Securities of this series) are, and are to be, authenticated and delivered and secured.  The acceptance of this Note shall be deemed to constitute the consent and agreement by the Holder hereof to all of the terms and provisions of the Indenture.  This Note is one of the series of Securities designated above.

 

Notwithstanding anything to the contrary in Section 113 of the Original Indenture, in the Supplemental Indenture or in this Note, if the Stated Maturity or any Redemption Date of this Note shall not be a Business Day at any Place of Payment, then (notwithstanding any other provision of the Original Indenture or the Supplemental Indenture or this Note) payment of interest on or principal (and premium, if any) of this Note due at the Stated Maturity or on any Redemption Date thereof need not be made at such Place of Payment on such date, but may be made on the next succeeding Business Day at such Place of Payment with the same force and effect as if made on the Stated Maturity or on any Redemption Date thereof, provided that interest shall accrue on the Outstanding principal amount of this Note due at the Stated Maturity or on any Redemption Date thereof until the date of actual payment.  Interest hereon will be computed on the basis of a 360-day year of twelve 30-day months.

 

This Note is subject to mandatory redemption under the circumstances set forth in Section 501(a) of the Original Indenture and as set forth in Section 2.03 of the Supplemental Indenture.  This Note is subject to redemption at the option of the Company, in whole or in part, as set forth in Section 2.04 of the Supplemental Indenture.

 

If an Event of Default, as defined in the Indenture, occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.

 

The Original Indenture permits, with certain exceptions as therein provided, the Trustee to enter into one or more supplemental indentures for the purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of, the Indenture with the consent of the Holders of a majority in aggregate principal amount of the Securities of all series then Outstanding under the Indenture, considered as one class; provided, however, that if there shall be Securities of more than one series Outstanding under the Indenture and if a proposed supplemental indenture shall directly affect the rights of the Holders of Securities of one or more, but less than all, of such series, then the consent only of the Holders of a majority in aggregate principal amount of the Outstanding Securities of each series so directly affected, considered as separate classes, shall be required; and provided, further, that if the Securities of any series shall have been issued in more than one Tranche and if a proposed supplemental indenture shall directly affect the rights of the Holders of Securities of one or more, but less than all, of such Tranches, then the consent only of the Holders of a majority in aggregate principal amount of the Outstanding Securities of all Tranches so directly affected, considered as one class, shall be required; and provided, further, that the Original Indenture permits the Trustee to enter into one or more supplemental indentures for limited purposes without the consent of any Holders of Securities and for certain other purposes with the consent of all Holders of affected Securities.  The Original Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities then Outstanding, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange therefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

 

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal and interest and

 

Ex. C-3

 

any Make-Whole Amount on this Note at the times, place and rate, and in the coin or currency, herein prescribed.

 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Security Register, upon surrender of this Note for registration of transfer at the office or agency of the Trustee in New York, New York, which as of the date hereof is located at c/o The Bank of New York Mellon, Trust Services Window, 101 Barclay Street, New York, New York 10286, or such other office or agency as may be designated by the Company from time to time in accordance with the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in the form attached hereto as Annex A duly executed by the Holder hereof, or his attorney duly authorized in writing, and thereupon one or more new Securities of this series of authorized denominations and of like tenor and aggregate principal amount, will be issued to the designated transferee or transferees.

 

The Securities of this series are issuable only as registered Securities, without coupons, and in denominations of $250,000 or any integral multiple thereof.  As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of the same series, of any authorized denominations, as requested by the Holder surrendering the same, and of like tenor upon surrender of the Note or Notes to be exchanged at the office or agency of the Trustee in New York, New York at c/o The Bank of New York Mellon, Trust Services Window, 101 Barclay Street, New York, New York 10286, or such other office or agency as may be designated by the Company from time to time in accordance with the Indenture.

 

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 in accordance with the Indenture.

 

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

 

The Securities of this series are not entitled to the benefit of any sinking fund.

 

As provided in Section 2.05 of the Supplemental Indenture, except as may be agreed to by the Holder hereof in connection with an offer made to all Holders of the Securities of this series on the same terms and conditions, the Company shall not and shall not permit any Affiliate of the Company to purchase, redeem or otherwise acquire, directly or indirectly, this Note, except upon the payment or redemption of this Note in accordance with the terms of the Indenture.  The Company will promptly cause the Trustee to cancel this Note once acquired by it or any Affiliate of the Company pursuant to any payment, redemption or purchase of this Note pursuant to any provision of the Indenture and no Notes may be issued in substitution or exchange for this Note.

 

As provided in Section 1401 of the Original Indenture, no recourse shall be had for the payment of the principal of or Make-Whole Amount, if any, or interest on any Securities, or any part thereof, or for any claim based thereon or otherwise in respect thereof, or of the indebtedness represented thereby, or upon any obligation, covenant or agreement under the Indenture, against, and no personal liability whatsoever shall attach to, or be incurred by, any incorporator, member, manager, stockholder, officer, director or employee, as such, past, present or future, of the Company or any predecessor or successor corporation or company, either directly or through the Company or any predecessor or successor corporation or company or any Successor Corporation, whether by virtue of any constitutional provision, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly agreed and

 

Ex. C-4

 

understood that the Indenture and all the Securities (including the Notes) are solely corporate obligations of the Company and that any such personal liability is hereby expressly waived and released as a condition of, and as part of the consideration for, the execution of the Indenture and the issuance of the Securities (including the Notes).

 

Demand, presentment, protest and notice of non-payment and protest are hereby waived by the Company.

 

This Note shall be governed by and construed in accordance with the law of the State of New York, except that (i) to the extent that the Trust Indenture Act shall be applicable, this Note shall be governed by and construed in accordance with the Trust Indenture Act and (ii) if the law of any jurisdiction wherein any portion of the Mortgaged Property that is Real Property is located shall govern the creation of a mortgage lien on and security interest in, or perfection, priority or enforcement of the Lien of the Indenture or exercise of remedies with respect to, such portion of the Mortgaged Property, this Note shall be governed by and construed in accordance with the law of such jurisdiction to the extent mandatory.

 

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

 

[The remainder of this page is intentionally left blank.]

 

Ex. C-5

 

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

 

 

	
 
    	
MICHIGAN ELECTRIC TRANSMISSION COMPANY, LLC, a Michigan limited   liability company
    
	
 
    	
 
    
	
 
    	
By:   ITC Holdings Corp., its sole manager
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

Date: April 26, 2016

 

Ex. C-6

 

SCHEDULE A

 

SCHEDULE OF NOTATIONS

 

The notations on the following table have been made by the holder of the within Note in connection with the transfer thereof in accordance with Section 2.02(b) of the Supplemental Indenture.

 

	
Date of Notation
    	
 
    	
Amount of principal paid
   on the within Note
    	
 
    	
Last date to which interest has
   been paid on the within Note
    	
 
    	
Notation by Holder
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Ex. C-7

 

ANNEX A

 

FORM OF ASSIGNMENT

 

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

 

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER

 

	
 
    
	
Please print or   typewrite name and address, including postal zip code of assignee
    
	
 
    
	
 
    

 

 

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

 

 

attorney to transfer said Note on the Security Register, upon surrender of said Note at the office or agency of the Trustee in New York, New York, or such other office or agency as may be designated by the Company from time to time in accordance with the Indenture, with full power of substitution in the premises.

 

	
Dated:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[NAME OF TRANSFEROR]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    
	
 
    	
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.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Signature Guarantee:
    	
 
    
					

 

SIGNATURE GUARANTEE

 

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Security Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Security Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

 

Ex. C-8

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