Document:

Exhibit
4.4

 

WHEN RECORDED MAIL TO:

Illinois Power Company

Craig W. Stensland

One Ameren Plaza (MC 1310)

1901 Chouteau Avenue

St. Louis, MO 63103

 

ILLINOIS POWER COMPANY

 

TO

 

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

 

(FORMERLY BNY MIDWEST TRUST COMPANY),

 

AS SUCCESSOR TRUSTEE TO

 

HARRIS TRUST AND SAVINGS BANK

 

 

SUPPLEMENTAL INDENTURE

 

DATED AS OF OCTOBER 1, 2008

 

TO

 

GENERAL MORTGAGE INDENTURE AND DEED OF TRUST

 

DATED AS OF NOVEMBER 1, 1992

 

 

This instrument
was prepared by Steven R. Sullivan, Senior Vice President, General Counsel and
Secretary of Illinois Power Company c/o Ameren Corporation, One Ameren Plaza,
1901 Chouteau Avenue, St. Louis, Missouri 63103.

 

 

SUPPLEMENTAL INDENTURE dated as of October 1, 2008 (“Supplemental
Indenture”), made by and between ILLINOIS POWER COMPANY, a corporation
organized and existing under the laws of the State of Illinois (the “Company”),
party of the first part, and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.
(formerly BNY Midwest Trust Company), a corporation organized and existing
under the laws of the State of Illinois, as successor trustee to Harris Trust
and Savings Bank, a corporation organized and existing under the laws of the
State of Illinois (the “Trustee”), as Trustee under the General Mortgage
Indenture and Deed of Trust dated as of November 1, 1992, hereinafter
mentioned, party of the second part;

 

WHEREAS, the Company has heretofore executed and delivered its General
Mortgage Indenture and Deed of Trust dated as of November 1, 1992 as from
time to time amended (the “Indenture”), to the Trustee, for the security of the
Bonds of the Company issued and to be issued thereunder (the “Bonds”); and

 

WHEREAS, pursuant to the terms and provisions of the Indenture there were
created and authorized by supplemental indentures thereto bearing the following
dates, respectively, the Mortgage Bonds of the series issued thereunder and
respectively identified opposite such dates:

 

	
  DATE
  OF

  SUPPLEMENTAL

  INDENTURE

  	
   

  	
  IDENTIFICATION OF SERIES

  	
   

  	
  CALLED

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  February 15, 1993

  	
   

  	
  8% Series due 2023 (redeemed)

  	
   

  	
  Bonds of the 2023 Series

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  March 15, 1993

  	
   

  	
  6 1/8% Series due 2000 (paid at maturity)

  	
   

  	
  Bonds of the 2000 Series

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  March 15, 1993

  	
   

  	
  6 3/4% Series due 2005 (paid at maturity)

  	
   

  	
  Bonds of the 2005 Series

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  July 15, 1993

  	
   

  	
  7 1/2% Series due 2025 (redeemed)

  	
   

  	
  Bonds of the 2025 Series

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  August 1, 1993

  	
   

  	
  6 1/2% Series due 2003 (paid at maturity)

  	
   

  	
  Bonds of the 2003 Series

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  October 15, 1993

  	
   

  	
  5 5/8% Series due 2000 (paid at maturity)

  	
   

  	
  Bonds of the Second 2000 Series

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  November 1, 1993

  	
   

  	
  Pollution Control Series M (redeemed)

  	
   

  	
  Bonds of the Pollution Control Series M

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  November 1, 1993

  	
   

  	
  Pollution Control Series N (redeemed)

  	
   

  	
  Bonds of the Pollution Control Series N

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  November 1, 1993

  	
   

  	
  Pollution Control Series O (redeemed)

  	
   

  	
  Bonds of the Pollution Control Series O

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  April 1, 1997

  	
   

  	
  Pollution Control Series P

  	
   

  	
  Bonds of the Pollution Control Series P

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  April 1, 1997

  	
   

  	
  Pollution Control Series Q

  	
   

  	
  Bonds of the Pollution Control Series Q

  

 

 

	
  DATE
  OF

  SUPPLEMENTAL

  INDENTURE

  	
   

  	
  IDENTIFICATION OF SERIES

  	
   

  	
  CALLED

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  April 1, 1997

  	
   

  	
  Pollution Control Series R

  	
   

  	
  Bonds of the Pollution Control Series R

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  March 1, 1998

  	
   

  	
  Pollution Control Series S

  	
   

  	
  Bonds of the Pollution Control Series S

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  March 1, 1998

  	
   

  	
  Pollution Control Series T

  	
   

  	
  Bonds of the Pollution Control Series T

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  July 15, 1998

  	
   

  	
  6 1/4% Series due 2002 (paid at maturity)

  	
   

  	
  Bonds of the 2002 Series

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  September 15, 1998

  	
   

  	
  6% Series due 2003 (paid at maturity)

  	
   

  	
  Bonds of the Second 2003 Series

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  June 15, 1999

  	
   

  	
  7.50% Series due 2009

  	
   

  	
  Bonds of the 2009 Series

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  July 15, 1999

  	
   

  	
  Pollution Control Series U

  	
   

  	
  Bonds of the Pollution Control Series U

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  July 15, 1999

  	
   

  	
  Pollution Control Series V (redeemed)

  	
   

  	
  Bonds of the Pollution Control Series V

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  May 1, 2001

  	
   

  	
  Pollution Control Series W

  	
   

  	
  Bonds of the Pollution Control Series W

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  May 1, 2001

  	
   

  	
  Pollution Control Series X

  	
   

  	
  Bonds of the Pollution Control Series X

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  July 1, 2002

  	
   

  	
  10 5/8% Series due 2007 (not issued)

  	
   

  	
  Bonds of the 2007 Series

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  July 1, 2002

  	
   

  	
  10 5/8% Series due 2012 (not issued)

  	
   

  	
  Bonds of the 2012 Series

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  December 15, 2002

  	
   

  	
  11.50% Series due 2010

  	
   

  	
  Bonds of the 2010 Series

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  June 1, 2006

  	
   

  	
  Mortgage Bonds, Senior Notes Series AA

  	
   

  	
  Bonds of Series AA

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  August 1, 2006

  	
   

  	
  Mortgage Bonds, 2006 Credit Agreement Series Bonds

  	
   

  	
  2006 Credit Agreement Series Bonds

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  March 1, 2007

  	
   

  	
  Mortgage Bonds, 2007 Credit Agreement Series Bonds

  	
   

  	
  2007 Credit Agreement Series Bonds

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  November 15, 2007

  	
   

  	
  Mortgage Bonds, Senior Notes Series BB

  	
   

  	
  Bonds of Series BB

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  April 1, 2008

  	
   

  	
  Mortgage Bonds, Senior Notes Series CC

  	
   

  	
  Bonds of Series CC

  

 

and

 

WHEREAS, a supplemental indenture with respect to the Bonds of the 2007 Series and
the Bonds of the 2012 Series listed above was executed and filed but such
Bonds of the 2007 

 

2

 

Series and Bonds of the 2012 Series were never issued and a
release with respect to such supplemental indenture was subsequently executed
and filed; and

 

WHEREAS, the Company desires to create a new series of Bonds to be issued
under the Indenture to be known as “Mortgage Bonds, Senior Notes Series DD”
(the “Series DD Mortgage Bonds”); and

 

WHEREAS,
the Company has entered into an Indenture dated as of June 1, 2006 (the “Senior
Note Indenture”) with The Bank of New York Mellon Trust Company, N.A., as
trustee (the “Senior Note Trustee”), providing for the issuance from time to
time of senior notes thereunder; and

 

WHEREAS, the Company desires by this Supplemental Indenture to issue to the
Senior Note Trustee the Series DD Mortgage Bonds as security for
$400,000,000 aggregate principal amount of the Company’s 9.75% Senior Secured
Notes due 2018 (the “Senior Notes”) to be issued under the Senior Note Indenture;
and

 

WHEREAS, the Company, in the exercise of the powers and authority conferred
upon and reserved to it under the provisions of the Indenture, and pursuant to
appropriate resolutions of the Board of Directors, has duly resolved and
determined to make, execute and deliver to the Trustee this Supplemental
Indenture in the form hereof for the purposes herein provided; and

 

WHEREAS, all conditions and requirements necessary to make this Supplemental
Indenture a valid, binding and legal instrument have been done, performed and
fulfilled and the execution and delivery hereof have been in all respects duly
authorized;

 

NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE
WITNESSETH:

 

THAT Illinois Power Company, in consideration of the purchase and
ownership from time to time of the Bonds and the service by the Trustee, and
its successors, under the Indenture and of One Dollar to it duly paid by the
Trustee at or before the ensealing and delivery of these presents, the receipt
whereof is hereby acknowledged, hereby covenants and agrees to and with the
Trustee and its successors in the trust under the Indenture, for the benefit of
those who shall hold the Bonds as follows:

 

ARTICLE I

 

DESCRIPTION OF THE SERIES DD
MORTGAGE BONDS.

 

Section 1.          The Company hereby
creates a new series of Bonds to be known as “Mortgage Bonds, Senior Notes Series DD”
(the “Series DD Mortgage Bonds”). 
The Series DD Mortgage Bonds shall be executed, authenticated and
delivered in accordance with the provisions of, and shall in all respects be
subject to, all of the terms, conditions and covenants of the Indenture, as
supplemented and modified.  The Series DD
Mortgage Bonds shall be issued in the name of the Senior Note Trustee under the
Senior Note Indenture to secure any and all of the Company’s obligations under
the Senior Notes and any other series of senior notes from time to time
outstanding under the Senior Note Indenture.

 

The Series DD Mortgage Bonds shall be dated as provided in Section 3.03
of Article Three of the Indenture. 
The Series DD Mortgage Bonds shall mature on November 15,
2018, 

 

3

 

shall accrue interest from the dates set forth in the Senior Notes and
shall bear interest at the same rate of interest as the Senior Notes.  Interest on the Series DD Mortgage Bonds
is payable on the same dates as interest on the Senior Notes is paid, until the
principal sum is paid in full.

 

Upon any payment of the
principal of, premium, if any, and interest on, all or any portion of the
Senior Notes, whether at maturity or prior to maturity by redemption or
otherwise or upon provision for the payment thereof having been made in
accordance with Section 5.01(a) of the Senior Note Indenture, the Series DD Mortgage Bonds in
a principal amount equal to the principal amount of such Senior Notes shall, to
the extent of such payment of principal, premium, if any, and interest, be
deemed paid and the obligation of the Company thereunder to make such payment
shall be discharged to such extent and, in the case of the payment of principal
(and premium, if any), such Series DD
Mortgage Bonds shall be surrendered to the Company for cancellation as
provided in Section 4.08 of the Senior Note Indenture.  The Trustee may at any time and all times
conclusively assume that the obligation of the Company to make payments with
respect to the principal of, premium, if any, and interest on the Senior Notes,
so far as such payments at the time have become due, has been fully satisfied
and discharged pursuant to the foregoing sentence unless and until the Trustee
shall have received a written notice from the Senior Note Trustee signed by one
of its officers stating (i) the timely payment of principal, or premium,
if any, or interest on, the Senior Notes has not been made, (ii) that the
Company is in arrears as to the payments required to be made by it to the
Senior Note Trustee pursuant to the Senior Note Indenture, and (iii) the
amount of the arrearage.

 

Section 2.          The Series DD
Mortgage Bonds and the Trustee’s Certificate of Authentication shall be
substantially in the following forms respectively:

 

[FORM OF FACE OF BOND]

 

NOTWITHSTANDING ANY
PROVISIONS HEREOF OR IN THE INDENTURE THIS BOND IS NOT ASSIGNABLE OR
TRANSFERABLE EXCEPT AS PERMITTED BY SECTION 4.04 OF THE INDENTURE DATED AS
OF JUNE 1, 2006, BETWEEN ILLINOIS POWER COMPANY AND THE BANK OF NEW YORK MELLON
TRUST COMPANY, N.A., AS TRUSTEE

 

ILLINOIS POWER COMPANY

 

(Incorporated under the laws of the State of Illinois)

 

Illinois Commerce Commission

Identification No.: Ill. C.C. 6505

 

MORTGAGE
BOND, SENIOR NOTES SERIES DD

 

	
  No.               

  	
   

  	
  $400,000,000

  

 

ILLINOIS POWER COMPANY, a corporation organized and existing under the
laws of the State of Illinois (the “Company”), which term shall include any
successor corporation as defined in the Indenture hereinafter referred to, for
value received, hereby promises to pay to The Bank of New York Mellon Trust
Company, N.A., as trustee (the “Senior Note Trustee”) under the Indenture dated
as of June 1, 2006 (the “Senior Note Indenture”), relating to the Company’s

 

4

 

9.75% Senior Secured Notes due 2018 (the “Senior Notes”) in the
aggregate principal amount of $400,000,000, between the Company and the Senior
Note Trustee, or registered assigns, the principal sum of $400,000,000 on November 15,
2018, in any coin or currency of the United States of America, which at the
time of payment is legal tender for public and private debts, and to pay
interest thereon in like coin or currency from the date of issuance (and
thereafter from the dates set forth in the Senior Notes), and at the same rate
of interest as the Senior Notes. 
Interest on overdue principal, premium, if any, and, to the extent
permitted by law, on overdue interest, shall be payable at the interest rate
payable on the Senior Notes.  Interest on
this Mortgage Bond is payable on the same dates as interest on the Senior Notes
is paid, until the principal sum of this Mortgage Bond is paid in full.  Pursuant to Article IV of the Senior
Note Indenture, this Mortgage Bond is issued to the Senior Note Trustee to
secure any and all obligations of the Company under the Senior Notes and any
other series of senior notes from time to time outstanding under the Senior
Note Indenture.  Payment of principal of,
or premium, if any, or interest on, the Senior Notes shall constitute payments
on this Mortgage Bond as further provided herein and in the Supplemental
Indenture of October 1, 2008 (as hereinafter defined) pursuant to which
this Mortgage Bond has been issued. Both the principal of, premium, if any, and
the interest on, this Mortgage Bond are payable at the office of the Senior
Note Trustee.

 

Upon any payment of the
principal of, premium, if any, and interest on, all or any portion of the
Senior Notes, whether at maturity or prior to maturity by redemption or
otherwise or upon provision for the payment thereof having been made in
accordance with Section 5.01(a) of the Senior Note Indenture, a
principal amount of this Mortgage Bond equal to the principal amount of such
Senior Notes shall, to the extent of such payment of principal, premium, if
any, and interest, be deemed paid and the obligation of the Company thereunder
to make such payment shall be discharged to such extent and, in the case of the
payment of principal (and premium, if any), such Mortgage Bonds shall be
surrendered to the Company for cancellation as provided in Section 4.08 of
the Senior Note Indenture.  The Trustee
(as hereinafter defined) may at any time and all times conclusively assume that
the obligation of the Company to make payments with respect to the principal
of, premium, if any, and interest on, the Senior Notes, so far as such payments
at the time have become due, has been fully satisfied and discharged pursuant
to the foregoing sentence unless and until the Trustee shall have received a
written notice from the Senior Note Trustee signed by one of its officers
stating (i) that timely payment of principal of, premium, if any, or
interest on, the Senior Notes has not been made, (ii) that the Company is
in arrears as to the payments required to be made by it to the Senior Note
Trustee pursuant to the Senior Note Indenture, and (iii) the amount of the
arrearage.

 

For purposes of Section 4.09 of the Senior Note Indenture, this
Mortgage Bond shall be deemed to be the “Related Series of Senior Note
Mortgage Bonds” in respect of the Senior Notes.

 

This Mortgage Bond shall not be entitled to any benefit under the
Indenture or any indenture supplemental thereto, or become valid or obligatory
for any purpose, until the form of certificate endorsed hereon shall have been
signed by or on behalf of The Bank of New York Mellon Trust Company, N.A.
(formerly BNY Midwest Trust Company), as successor trustee to Harris Trust and
Savings Bank, the Trustee under the Indenture, or a successor trustee thereto
under the Indenture (the “Trustee”).

 

The provisions of this Mortgage Bond are continued on the reverse
hereof and such continued provisions shall for all purposes have the same
effect as though fully set forth at this place.

 

5

 

IN WITNESS WHEREOF, Illinois Power Company has caused this Mortgage
Bond to be signed (manually or by facsimile signature) in its name by an
Authorized Executive Officer, as defined in the aforesaid Indenture, and
attested (manually or by facsimile signature) by an Authorized Executive
Officer, as defined in such Indenture on the date hereof.

 

	
  Dated October 1, 2008

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ILLINOIS POWER COMPANY,

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  AUTHORIZED EXECUTIVE OFFICER

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  AUTHORIZED EXECUTIVE OFFICER

  	
   

  

 

6

 

[FORM OF TRUSTEE’S CERTIFICATE OF
AUTHENTICATION]

 

This is one of the Mortgage Bonds of the series designated therein
referred to in the within mentioned Indenture and the Supplemental Indenture
dated as of October 1, 2008.

 

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

(formerly BNY Midwest Trust Company),

as successor trustee to

Harris Trust and Savings Bank,

TRUSTEE,

 

By:

AUTHORIZED SIGNATORY

 

[FORM OF REVERSE OF BOND]

 

This Mortgage Bond is one of a duly authorized issue of Mortgage Bonds
of the Company (the “Mortgage Bonds”) in unlimited aggregate principal amount,
of the series hereinafter specified, all issued and to be issued under and
equally secured by the General Mortgage Indenture and Deed of Trust (the “Indenture”),
dated as of November 1, 1992, executed by the Company to The Bank of New
York Mellon Trust Company, N.A. (formerly BNY Midwest Trust Company), as
successor trustee to Harris Trust and Savings Bank (the “Trustee”) to which
Indenture and all indentures supplemental thereto reference is hereby made for
a description of the properties mortgaged and pledged, the nature and extent of
the security, the rights of registered owners of the Mortgage Bonds and of the
Trustee in respect thereof, and the terms and conditions upon which the Mortgage
Bonds are, and are to be, secured.  The
Mortgage Bonds may be issued in series, for various principal sums, may mature
at different times, may bear interest at different rates and may otherwise vary
as provided in the Indenture.  This
Mortgage Bond is one of a series designated as the Series DD Mortgage
Bonds of the Company, unlimited in aggregate principal amount, issued under and
secured by the Indenture and described in the Supplemental Indenture dated as
of October 1, 2008 (the “Supplemental Indenture of October 1, 2008”
), between the Company and the Trustee, supplemental to the Indenture.

 

This Series DD Mortgage Bond is subject to redemption in
accordance with the terms of Article II of the Supplemental Indenture of October 1,
2008.

 

In case an Event of Default, as defined in the Indenture, shall occur,
the principal of all Mortgage Bonds at any such time outstanding under the
Indenture may be declared or may become due and payable, upon the conditions
and in the manner and with the effect provided in the Indenture.  The Indenture provides that such declaration
may be rescinded under certain circumstances.

 

7

 

ARTICLE II

 

REDEMPTION.

 

Section 1.        The Series DD Mortgage Bonds are not redeemable except on the
date, in the principal amount and for the redemption price that correspond to
the redemption date for, the principal amount to be redeemed of, and the
redemption price for, the Senior Notes, and except as set forth in Section 2
of this Article II.

 

In the event that
the Company redeems any Senior Notes prior to maturity in accordance with the
provisions of the Senior Note Indenture, the Senior Note Trustee shall on the
same date deliver to the Company the Series DD Mortgage Bonds in principal
amount corresponding to the Senior Notes so redeemed, as provided in Section 4.08
of the Senior Note Indenture.  The
Company agrees to give the Trustee notice of any such redemption of the Senior
Notes on or before the date fixed for any such redemption.

 

Section 2.        Upon the occurrence of an
Event of Default under the Senior Note Indenture (as defined therein) and the
acceleration of the Senior Notes, the Series DD Mortgage Bonds shall be
redeemable in whole upon receipt by the Trustee (with a copy to the Company) of
a written demand (hereinafter called a “Redemption Demand”) from the Senior
Note Trustee stating that there has occurred under the Senior Note Indenture
both an Event of Default and a declaration of acceleration of payment of
principal, accrued interest and premium, if any, on the Senior Notes specifying
the last date to which interest on such Senior Notes has been paid (such date
being hereinafter referred to as the “Initial Interest Accrual Date”) and
demanding redemption of the Series DD Mortgage Bonds.  The Company waives any right it may have to
prior notice of such redemption under the Indenture.  Upon surrender of the Series DD Mortgage
Bonds by the Senior Note Trustee to the Trustee, the Series DD Mortgage
Bonds shall be redeemed at a redemption price equal to the principal amount
thereof plus accrued interest thereon from the Initial Interest Accrual Date to
the redemption date; provided, however, that in the event of a rescission or
annulment of acceleration of the Senior Notes pursuant to the last paragraph of
Section 8.01(a) of the Senior Note Indenture, then any Redemption
Demand shall thereby be deemed to be rescinded by the Senior Note Trustee
although no such rescission or annulment shall extend to or affect any
subsequent default or impair any right consequent thereon.

 

ARTICLE III

 

ISSUE OF THE SERIES DD MORTGAGE BONDS.

 

Section 1.        The Company hereby exercises the right to obtain the authentication of
$400,000,000 principal amount of additional Bonds pursuant to the terms of Section 4.04
of the Indenture, all of which shall be Series DD Mortgage Bonds.  The principal amount of the Series DD
Mortgage Bonds outstanding from time to time shall always be equal to the
principal amount of the Senior Notes which are outstanding from time to time under
the Senior Note Indenture and to the extent the Senior Note Trustee holds Series DD
Mortgage Bonds in excess of such principal amount, such Series DD Mortgage
Bonds shall be deemed cancelled and retired and no longer outstanding under the
Indenture.

 

Section 2.        Such Series DD Mortgage Bonds may be authenticated and delivered
prior to the filing for recordation of this Supplemental Indenture.

 

Section 3.        For purposes of Section 4.09
of the Senior Note Indenture, the Series DD
Mortgage Bonds shall be deemed to be the “Related Series of Senior
Notes Mortgage Bonds” in respect of the Senior Notes.

 

8

 

ARTICLE IV

 

THE TRUSTEE.

 

The Trustee hereby accepts the trusts hereby declared and provided, and
agrees to perform the same upon the terms and conditions in the Indenture set
forth and upon the following terms and conditions:

 

The Trustee shall not be responsible in any manner whatsoever for or in
respect of the validity or sufficiency of this Supplemental Indenture or the
due execution hereof by the Company or for or in respect of the recitals
contained herein, all of which recitals are made by the Company solely.  In general, each and every term and condition
contained in Article Eleven of the Indenture shall apply to this
Supplemental Indenture with the same force and effect as if the same were
herein set forth in full, with such omissions, variations and modifications
thereof as may be appropriate to make the same conform to this Supplemental
Indenture.

 

ARTICLE V

 

MISCELLANEOUS PROVISIONS.

 

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

 

9

 

IN WITNESS WHEREOF, said Illinois Power Company has caused this
Supplemental Indenture to be executed on its behalf by an Authorized Executive
Officer as defined in the Indenture, and its corporate seal to be hereto
affixed and said seal and this Supplemental Indenture to be attested by an
Authorized Executive Officer as defined in the Indenture; and said The Bank of
New York Mellon Trust Company, N.A. (formerly BNY Midwest Trust Company), as successor
trustee to Harris Trust and Savings Bank, in evidence of its acceptance of the
trust hereby created, has caused this Supplemental Indenture to be executed on
its behalf by its President or one of its Vice Presidents and its corporate
seal to be hereto affixed and said seal and this Supplemental Indenture to be
attested by its Secretary or one of its Vice Presidents; all as of October 1,
2008.

 

 

ILLINOIS POWER COMPANY

 

 

	
  (CORPORATE SEAL)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Jerre E. Birdsong

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Jerre E. Birdsong

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President and Treasurer

  

 

ATTEST:

 

	
  By:

  	
  /s/ Ronald S. Gieseke

  	
   

  	
   

  
	
   

  	
   Name:

  	
  Ronald S. Gieseke

  	
   

  	
   

  
	
   

  	
   Title:

  	
  Assistant Secretary

  	
   

  	
   

  

 

10

 

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

(formerly BNY Midwest Trust Company),

successor trustee to

Harris Trust and Savings Bank,

TRUSTEE,

 

(CORPORATE SEAL)

 

	
   

  	
   

  	
  By:

  	
   /s/ Rebekah Foltz

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Rebekah Foltz

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

ATTEST:

 

	
  By:

  	
  /s/ Daniel G. Dwyer

  	
   

  	
   

  
	
   

  	
   Name:

  	
  Daniel G. Dwyer

  	
   

  	
   

  
	
   

  	
   Title:

  	
  Vice President

  	
   

  	
   

  

 

11

 

	
  STATE OF MISSOURI

  	
  )

  	
   

  
	
   

  	
   

  	
  ss.

  
	
  CITY OF ST. LOUIS

  	
  )

  	
   

  

 

BE IT REMEMBERED, that on this 16th day of October, 2008, before me,
the undersigned, a Notary Public within and for the City and State aforesaid,
personally came Jerre E. Birdsong, Vice President and Treasurer and Ronald S.
Gieseke, Assistant Secretary, of Illinois Power Company, a corporation duly
organized, incorporated and existing under the laws of the State of Illinois,
who are personally known to me to be such officers, and who are personally
known to me to be the same persons who executed as such officers the within
instrument of writing, and such persons duly acknowledged that they signed,
sealed and delivered the said instrument as their free and voluntary act as
such officers and as the free and voluntary act of said Illinois Power Company
for the uses and purposes therein set forth.

 

IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my
official seal on the day and year last above written.

 

	
   

  	
  /s/ Debra K. Patterson

  
	
   

  	
  NOTARY
  PUBLIC

  

 

 

My
Commission Expires on October 31, 2008

(NOTARIAL SEAL)

 

12

 

	
  STATE OF MISSOURI

  	
  )

  	
   

  
	
   

  	
   

  	
  ss.

  
	
  CITY OF ST. LOUIS

  	
  )

  	
   

  

 

BE IT REMEMBERED, that on this 16th day of October, 2008, before me,
the undersigned, a Notary Public within and for the County and State aforesaid,
personally came Rebekah Foltz, Vice President and Daniel G. Dwyer, Vice
President, of The Bank of New York Mellon Trust Company, N.A., a corporation
duly organized, incorporated and existing under the laws of the State of
Illinois, who are personally known to me to be the same persons who executed as
such officers the within instrument of writing, and such persons duly acknowledged
that they signed, sealed and delivered the said instrument as their free and
voluntary act as such Vice President and Vice President, and as the free and
voluntary act of said The Bank of New York Mellon Trust Company, N.A. for the
uses and purposes therein set forth.

 

IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my
official seal on the day and year last above written.

 

	
   

  	
  /s/ Matthew A. Biere

  
	
   

  	
  NOTARY
  PUBLIC, MISSOURI

  

 

 

My
Commission Expires on January 18, 2009

(NOTARIAL SEAL)

 

13Exhibit 10.1

 

INDEMNIFICATION AGREEMENT

 

(Chase Packaging Corporation)

 

THIS AGREEMENT is made this 21st day of
October, 2008, between Chase Packaging
Corporation, a Texas
corporation (the “Company”), and                               (“Indemnitee”).  This
Agreement completely replaces and supersedes the Indemnification Agreement
dated August 23, 2007, between Indemnitee and the Company.

 

Competent and experienced persons are becoming more reluctant to serve
as directors and/or officers of corporations unless they are provided with
adequate protection against claims and actions against them for their
activities on behalf or at the request of such corporations, generally through
insurance and/or indemnification.

 

Uncertainties in the interpretations of the statutes and regulations,
laws, and public policies relating to indemnification of corporate directors
and officers are such as to make adequate, reliable assessment of the risks to
which directors and officers of such corporations may be exposed difficult, particularly
in light of the proliferation of lawsuits against directors and officers
generally.

 

The Board of Directors of the Company, based upon its business
experience, has concluded that the continuation of present trends in litigation
against corporate directors and officers will inevitably make it more difficult
for the Company to attract and retain directors and officers of the highest
degree of competence committed to the active and effective direction and
supervision of the business and affairs of the Company and its subsidiaries and
affiliates and the operation of its and their facilities. In fact, the Board
deems such consequence to be so detrimental to the best interests of the
Company that it has concluded that the Company should act to provide its
directors and officers with enhanced protection against inordinate risks
attendant on their positions in order to assure that the most capable persons
otherwise available will be attracted to, or will remain in, such positions. In
such connection, such directors have further concluded that it is not only
reasonable and prudent but necessary for the Company to obligate itself
contractually to indemnify, to the fullest extent permitted by applicable law,
financial responsibility for expenses and liabilities which might be incurred
by such individuals in connection with claims lodged against them for their
decisions and actions in such capacities.

 

Article 2.02-1 of the Texas Business Corporation Act of the State
of Texas, under which law the Company is organized, empowers a corporation
organized in Texas to indemnify persons who serve as directors and/or officers
of the corporation, or persons who serve at the request of the corporation as
directors and/or officers of an affiliated corporation,  and further empowers a corporation to “purchase and maintain insurance” on
behalf of such persons “against any
liability asserted against him and incurred by him in such a capacity or
arising out of his status as such a person, whether or not the corporation
would have the power to indemnify him against that liability under this
[Article].”

 

 

The Articles of Incorporation and Bylaws of the Company permit
indemnification to the fullest extent permitted by applicable law.

 

The Company desires to have the Indemnitee serve or continue to serve
as a director and/or officer of the Company, and/or as a director, officer,
employee, partner, trustee, agent, and/or fiduciary of such other corporations
partnerships, joint ventures, employee benefit plans, trusts, and/or other enterprises
(herein referred to as “Company Affiliate”)
of which he or she has been or is serving, or will serve on behalf of or at the
request of or for the convenience of, or to represent the interests of the
Company, free from undue concern for unpredictable, inappropriate, or
unreasonable claims for damages by reason of his or her being, or having been,
a director and/or officer of the Company, and/or a director, officer, employee,
partner, trustee, agent, and/or fiduciary of a Company Affiliate, or by reason
of his or her decisions or actions on their behalf.

 

The Indemnitee is willing to serve, or to continue to serve, or to take
on additional service for, the Company and/or the Company Affiliate in such
aforesaid capacities on the condition that he or she be indemnified as provided
for herein.

 

Accordingly, in consideration of the premises and the covenants
contained herein, the Company and the Indemnitee do hereby covenant and agree
as follows:

 

1                                          Services to the Company: The
Indemnitee shall serve or continue to serve as a director and/or officer of the
Company (in the case of a Company officer at the will of the Company or under
separate contract, if any such contract exists or shall hereafter exist),
and/or as a director, and/or officer, or fiduciary of a Company Affiliate,
faithfully and to the best of his or her ability so long as he or she is duly
elected and qualified in accordance with the provisions of the Bylaws or other
applicable constitutive documents thereof; provided. however that: (a) the
Indemnitee may at any time and for any reason resign from such position
(subject to any contractual obligations which the Indemnitee has assumed apart
from this Agreement); and (b) neither the Company nor the Company
Affiliate will have any obligation under this Agreement to continue the
Indemnitee in any such position.

 

2                                          Right to Indemnification:

 

2.1                                 The Company shall,
except to the extent prohibited by applicable law as then in effect, indemnify
any Indemnitee who is or was involved in any manner (including, without
limitation, as a party or witness), or is threatened to be made so involved, in
any threatened, pending, or completed investigation, claim, action, suit, or
proceeding whether civil, criminal, administrative, or investigative
(including, without limitation, any action, suit, or proceeding by or in the
right of the Company to procure a judgment in its favor) (herein referred to as
a “Proceeding”) by reason of the fact that
such person is or was a director or officer of the Company, and/or is or was
serving at the request of the Company as a 

 

2

 

director or officer, of any Company affiliate, against all expenses
(including attorneys’ fees), judgments, fines, and amounts paid in settlement
actually and reasonably incurred by such person in connection with such
Proceeding; provided. however, that, except as provided in Paragraph
3.4, the foregoing shall not apply to a director or officer of the Company with
respect to a Proceeding that was commenced by such director or officer. Such
indemnification shall include the right to receive payment in advance of any
expenses incurred by the Indemnitee in connection with such Proceeding,
consistent with the provisions of applicable law as then in effect.

 

2.2                                 Notwithstanding the
obligation of the Company to indemnify attorneys’ fees as above provided in
Paragraph 2.1, as a condition to being so indemnified the following shall
apply. With regard to any “Proceeding” (as
above defined), there will be groups the members of which have totally common
interests  —  i.e., their goals are identical and there are
no conflicts-of-interest among them. At such time as the determination of these
groups has been completed (such determination to be made by “Independent Counsel” [as hereafter defined] if the parties
involved cannot make such determination among themselves), each group shall, by
majority vote of those comprising such group, select a single attorney or law
firm to serve as (exclusive) legal counsel for all of the members of such
group. In the event that any member of any such group acts independently by
retaining the legal services of any other attorney or law firm to additionally
or separately represent him, her, or it, all legal fees and expenses of such
independently retained attorney or law firm shall be the (sole) responsibility
of such independently acting member of the group.

 

3                                          Advancement of Expenses; Procedures; Presumptions
and Effect of Certain Proceedings: Remedies: In furtherance, but
not in limitation, of the foregoing provisions, the following procedures,
presumptions, and remedies shall apply with respect to advancement of expenses
and the right to indemnification hereunder:

 

3.1                                 Advancement
of Expenses: All reasonable expenses incurred by or on behalf of
the Indemnitee in connection with any Proceeding shall, after initial approval
in accordance with Paragraph 3.2, be advanced to the Indemnitee by the Company
within twenty (20) calendar days after the receipt by the Company of a
statement or statements from the Indemnitee requesting such advance or advances
from time to time, whether prior to or after final disposition of such
Proceeding. Such statement or statements shall: 
(a) be delivered to the Company within ninety (90) days after the
incurrence of the expenses being reported on such statement or statements; and (b) reasonably
evidence the expenses incurred by the Indemnitee (and, if required by law at
the time of such advance, shall include or be accompanied by an undertaking by
or on behalf of the Indemnitee to repay the amounts advanced if it should
ultimately be determined that the 

 

3

 

Indemnitee is not entitled to be indemnified against such expenses
hereunder).

 

3.2                                 Procurement
for Determination of Entitlement to Indemnification:

 

3.2.1                        To obtain indemnification as
herein provided, an Indemnitee shall submit to the President or Secretary of
the Company a written request, including such documentation and information as
is reasonably available to the Indemnitee and reasonably necessary to determine
whether and to what extent the Indemnitee is entitled to indemnification
(herein referred to as the “Supporting Documentation”). The determination of
the Indemnitee’s entitlement to indemnification shall be made not later than 60
calendar days after receipt by the Company of the written request for
Indemnification together with the Supporting Documentation. The Secretary or
President of the Company shall, promptly upon receipt of such a request for indemnification,
advise the Board of Directors in writing that the Indemnitee has requested
indemnification.

 

3.2.2                        The Indemnitee’s entitlement to
indemnification hereunder shall (except as provided in Subparagraph 3.2.3
below) be determined in one of the following ways (each of which shall give
effect to the presumptions set forth in Paragraph 3.3): (a) by a majority
vote of the Disinterested Directors (as hereinafter defined) if they constitute
a quorum of the Board of Directors; (b) by a written opinion of Independent
Counsel (as hereinafter defined) if a quorum of the Board of Directors
consisting of Disinterested Directors is not obtainable or, even if obtainable,
a majority of such Disinterested Directors so directs: (c) by the
stockholders of the Company (but only if a majority of the Disinterested
Directors, if they constitute a quorum of the Board of Directors, presents the
issue of entitlement to indemnification to the stockholders for their
determination); or (d) as provided in Paragraph 3.3. In the event that
this Subparagraph 3.2.2 applies, stockholder approval will be deemed to have
been received if the holders of a majority of the Company’s total common stock
outstanding vote in favor of such approval.

 

3.2.3                        Notwithstanding what is stated
above, in the event of a Change in Control (see definition contained in Exhibit “A” hereto) of the Company, the Indemnitee’s
entitlement to indemnification shall be determined by a written opinion of
Independent Counsel in a written opinion to the Board of Directors, a copy of
which shall be delivered to the Indemnitee. The Independent Counsel shall be
selected by the Indemnitee. In the event the Company objects to the Independent
Counsel so selected, within seven days after 

 

4

 

written notice of the selection has been given by the Indemnitee to the
Company, the Company may object to such selection by written notification given
to the Indemnitee. Such objection may be asserted only on the ground that the
Independent Counsel so selected does not meet the requirement of “Independent Counsel” as hereafter
defined, and the objection shall set forth with particularity the factual basis
of such assertion. If such written objection is made, the Independent Counsel
so selected may not serve as Independent Counsel unless and until a court has
determined that such objection is without merit. The Company shall pay any and
all reasonable fees and expenses of Independent Counsel incurred by such
Independent Counsel in connection with the performance of his or her
responsibilities hereunder, and the Company shall pay all reasonable fees and
expenses instant to the implementation of the procedures referred to above.
Upon the due commencement of any judicial proceeding or arbitration pursuant to
Subparagraph 3.4.1 hereof, the Independent Counsel shall be discharged and
relieved of any further responsibility in such capacity (subject to the
applicable standards of professional conduct then prevailing).

 

3.2.4                        In the event of a Potential Change
in Control (as hereinafter defined) of the Company, the Company, upon written
request by the Indemnitee, shall create a trust (which shall be a “grantor
trust” for federal income tax purposes) for the benefit of the Indemnitee and
from time to time upon written request of the Indemnitee shall fund such trust
in an amount sufficient to satisfy any and all expenses which at the time of
each such request it is reasonably anticipated will be incurred in connection
with a Proceeding for which the Indemnitee is entitled to rights of
indemnification under Paragraph 2 hereof, and any and all judgments, fines,
penalties, and settlement amounts of any and all proceedings for which the
Indemnitee is entitled to rights of indemnification under Paragraph 2 from time
to time actually paid or claimed, reasonably anticipated, or proposed to be
paid. The amount or amounts to be deposited in the trust pursuant to the
foregoing funding obligation shall be determined by the Independent Counsel
referred to in Subparagraph 3.2.2 above. The terms of the trust shall provide
that upon a Change in Control:  (i) the
trust shall ‘not be revoked or the principal thereof invaded, without the
written consent of the Indemnitee; (ii) the trustee shall advance, within
two (2) business days of a request by the Indemnitee, any and all expenses
to the Indemnitee; (iii) the trust shall continue to be funded by the
Company in accordance with the funding obligations set forth above; (iv) the
trustee shall promptly pay to the Indemnitee all amounts for which the
Indemnitee is entitled to indemnification pursuant to this Agreement or
otherwise; and (v) all unexpended 

 

5

 

funds in such trust shall revert to the Company upon a final
determination by such Independent Counsel that the Indemnitee has been fully
indemnified under the terms of this Agreement. The trustee shall be an
institutional trustee with a highly regarded reputation chosen by the
Indemnitee. Nothing in this Subparagraph 3.2.4 shall relieve the Company of any
of its obligations under this Agreement. Nothing contained in this Subparagraph
3.2.4. shall prevent the Board of Directors of the Company in its discretion at
any time and from time to time, upon request of the Indemnitee, from providing
security to the Indemnitee for the Company’s obligations hereunder through an
irrevocable line of credit, funded trust as described above, or other
collateral. Any such security, once provided to the Indemnitee, may not be
revoked or released without the Indemnitee’s prior written consent.

 

3.3                                 Presumptions
and Effect of Certain Proceedings: Except as otherwise expressly
provided herein, the Indemnitee shall be presumed to be entitled to
indemnification hereunder upon submission of a request for indemnification
together with the Supporting Documentation in accordance with Subparagraph
3.2.1, and thereafter the Company shall have the burden of proof to overcome
that presumption in reaching a contrary determination. In any event, if the
person or persons empowered under Paragraph 3.2 to determine entitlement to
indemnification have not been appointed or have not made a determination within
60 calendar days after receipt by the Company of the request therefor together
with the Supporting Documentation, the Indemnitee shall be deemed to be
entitled to indemnification, and the Indemnitee shall be entitled to such
indemnification unless the Company establishes as provided in the final
sentence of Paragraph 3.4.2 or by written opinion of Independent Counsel that: (a) the
Indemnitee misrepresented or failed to disclose a material fact in making the
request for indemnification or in the Supporting Documentation; or (b) such
indemnification is prohibited by law. The termination of any Proceeding
described in Paragraph 2, or of any claim, issue, or matter therein, by
judgment, order, settlement, or conviction, or upon a plea of nolo contendere  or its equivalent,
shall not, of itself, adversely affect the right of the Indemnitee to
indemnification or create a presumption that the Indemnitee did not act in good
faith and in a manner which the Indemnitee reasonably believed to be in, or not
opposed to, the best interests of the Company or, with respect to any criminal
Proceeding, that the Indemnitee had reasonable cause to believe that his or her
conduct was unlawful.

 

3.4                                 Remedies
of Indemnitee:

 

3.4.1                        In the event that a
determination is made pursuant to Paragraph 3.2 that the Indemnitee is not
entitled to indemnification hereunder: (a) the Indemnitee shall be
entitled to seek an adjudication of his or 

 

6

 

her entitlement to such indemnification either, at the Indemnitee’s
option, in (x) an appropriate court of the State of Texas or any other
court of competent jurisdiction, or (y) an arbitration to be conducted by
a single arbitrator, selected by mutual agreement of the Company and the
Indemnitee (or, failing such agreement by the then sitting Chief Judge of the
United States District Court for the appropriate jurisdiction), pursuant to the
commercial arbitration rules of the American Arbitration Association; (b) any
such judicial proceeding or arbitration shall be de novo, and the Indemnitee shall not be prejudiced by reason
of such adverse determination; and (c) in any such judicial proceeding or
arbitration, the Company shall have the burden of proving that indemnification
is prohibited by applicable law. If any such determination is made, the
Indemnitee shall be entitled, on five days’ written notice to the Secretary of
the Company, to receive the written report of the persons making such
determination, which report shall include the reasons and factual findings, if
any, upon which such determination was based.

 

3.4.2                        If a determination has been
made, or is deemed to have been made, pursuant to Paragraph 3.2 or 3.3, that
the Indemnitee is entitled to indemnification, the Company shall be obligated
to pay the amounts constituting such indemnification within five days after
such determination has been made or deemed to have been made and shall be
conclusively bound by such determination unless the Company establishes as
provided in the final sentence of this paragraph that: (a) the Indemnitee
misrepresented or failed to disclose a material fact in making the request for
indemnification or in the Supporting Documentation; or (b) such
indemnification is prohibited by law. If either (x) advancement of
expenses is not timely made pursuant to Paragraph 3.1, or (y) payment of
indemnification is not made within five calendar days after a determination of
entitlement to indemnification has been made or deemed to have been made
pursuant to Paragraph 3.2 or 3.3, the Indemnitee shall be entitled to seek
judicial enforcement of the Company’s obligation to pay to the Indemnitee such
advancement of expenses or indemnification. Notwithstanding the foregoing, the
Company may bring an action, in an appropriate court in the State of Texas or
any other court of competent jurisdiction, contesting the right of the
Indemnitee to receive indemnification hereunder due to the occurrence of an
event described in subclause (a) or (b) of this Subparagraph 3.4.2
(herein referred to as a “Disqualifying Event”); provided, however, that
in any such action the Company will have the burden of proving the occurrence
of such Disqualifying Event.

 

7

 

3.4.3                        The Company shall be precluded
from asserting in any judicial proceeding or arbitration commenced pursuant to
this Paragraph 3.4 that the procedures and presumptions of this Paragraph 3 are
not valid, binding, and enforceable, and shall stipulate in any such court
or before any such arbitrator that the Company is bound by all of the
provisions of this Agreement.

 

3.4.4                        If the Indemnitee, pursuant to
this Paragraph 3.4, seeks a judicial adjudication of, or an award in
arbitration to enforce, his or her rights under, or to recover damages for
breach of, this Agreement, the Indemnitee shall be entitled to recover from the
Company, and shall be indemnified by the Company against, those expenses (see
definition contained in Paragraph 2 above) actually and reasonably incurred by
the Indemnitee if the Indemnitee prevails in such judicial adjudication or
arbitration. If it shall be determined in such judicial adjudication or
arbitration that the Indemnitee is entitled to receive part but not all of the
indemnification or advancement of expenses sought, the expenses incurred by the
Indemnitee in connection with such judicial adjudication or arbitration shall
be prorated accordingly.  Provided,
however, notwithstanding what has just been stated:  (1) the amount of expenses for
reimbursement during the Indemnitee’s taxable year may not affect the expenses
eligible for reimbursement in any other taxable year; (2) the
reimbursement of an eligible expense must be made on or before ninety (90) days
after the date the Indemnitee prevailed in such adjudication or arbitration; (3) the
right to reimbursement may not be subject to liquidation or exchange for
another benefit.  Further, the Indemnitee’s
recovery from the Company of any such expenses must take place during the duration
of this Agreement (see Paragraph 5.1 which follows).

 

3.5                                 Definitions:
For purposes of this Paragraph 3:

 

“Disinterested Director” means a director
of the Company who is not or was not a party to the Proceeding in respect of
which indemnification is sought by the Indemnitee.

 

“Independent Counsel” means
a law firm or a member of a law firm that neither presently is, nor in the past
five years has been, retained to represent: (a) the Company or the
Indemnitee in any matter material to either such party; or (b) any other
party to the Proceeding giving rise to a claim for indemnification hereunder.
Notwithstanding the foregoing, the term “Independent
Counsel” shall not include any person who, under the applicable
standards of professional conduct then prevailing under the laws of the State
of Texas would have a conflict of interest in representing either the company
or the Indemnitee in an action to determine the Indemnitee’s rights hereunder.

 

8

 

“Potential Change in Control” shall
be deemed to have occurred if: (i) the Company enters into an agreement,
the consummation of which would result in the occurrence of a Change in
Control; (ii) a person (including the Company) publicly announces a
legitimate intention to take or to consider taking actions which if consummated
would constitute a Change in Control; (iii) any person, other than a
trustee or other fiduciary holding securities under an employee benefit plan of
the Company or a corporation owned, directly or indirectly, by the shareholders
of the Company in substantially the same proportions as their ownership of
stock  of the Company, who is or becomes
the beneficial owner, directly or indirectly, of securities of the Company
representing 9.5 % or more of the combined voting power of the Company’s then
outstanding Voting  Securities, increases
his or her beneficial ownership of such securities by five percentage points or
more over the percentage so owned by such person; or (iv) the Board of
Directors adopts a resolution to the effect that, for purposes of this
Agreement, a Potential Change in Control has occurred.

 

4                                          Other Rights to Indemnification:
The indemnification and advancement of costs and expenses (including attorneys’
fees and disbursements) provided by this Agreement shall not be deemed
exclusive of any other rights to which the Indemnitee may now or in the future
be entitled under any provision of applicable law, the Articles of
Incorporation, or any Bylaw of the Company or any other agreement, or any vote
of directors or stockholders or otherwise, whether as to action in his or her
official capacity or in another capacity while occupying any of the positions
or having any of the relationships referred to in Paragraph 1 of this
Agreement.

 

5                                          Duration of Agreement:

 

5.1                                 This Agreement shall
be effective from and after the date hereof, and shall continue until and
terminate upon the later of: (i) the tenth (10th) anniversary
after the Indemnitee has ceased to occupy any of the positions or have any of
the relationships described in Paragraph 1 of this Agreement; or (ii) (a) the
final termination or resolution of all proceedings with respect to the
Indemnitee commenced during such ten (10) year period, and (b) either
(x) receipt by the Indemnitee of the Indemnification to which he or she is
entitled hereunder with respect thereto, or (y) a final adjudication or
binding arbitration that the Indemnitee is not entitled to any further
indemnification with respect thereto, as the case may be.

 

5.2                                 This Agreement shall
be binding upon the Company and its successors and assigns and shall inure to
the benefit of the Indemnitee and his or her heirs, devisees, executors,
administrators, or other legal representatives.

 

6.                                       Severability: If any provision or
provisions of this Agreement are held to be invalid, illegal, or unenforceable
under any particular circumstances or for any 

 

9

 

reason whatsoever: (a) the validity, legality, and enforceability
of the remaining provisions of this Agreement (including, without limitation,
all other portions of any paragraph or clause of this Agreement that contains
any provision that has been found to be invalid, illegal, or unenforceable,
that are not themselves invalid, illegal, or unenforceable) or the validity,
legality, or enforceability under any other circumstances shall not in any way
be affected or impaired thereby; and (b) to the fullest extent possible
consistent with applicable law, the provisions of this Agreement (including,
without limitation, all other portions of any paragraph or clause of this
Agreement that contains any such provision that has been found to be invalid,
illegal, or unenforceable, that are not themselves invalid, illegal, or
unenforceable) shall be deemed revised and shall be construed so as to give
effect to the intent manifested by this Agreement (including the provision held
invalid, illegal, or unenforceable).

 

7.                                       Identical Counterparts: This
Agreement may be executed in one or more counterparts, each of which shall for
all purposes be deemed to be an original, but all of which together shall
constitute one and the same Agreement. Only one such counterpart signed by the
party against whom enforceability is sought needs to be produced to evidence
the existence of this Agreement.

 

8.                                       Headings: The headings of the
paragraphs of this Agreement are inserted for convenience and shall not be
deemed to constitute part of this Agreement or to affect the construction
thereof.

 

9.                                       Modification and Waiver: No
supplement, modification, or amendment of this Agreement shall be binding
unless executed in writing by both of the parties hereto. No waiver of any of
the provisions of this Agreement shall be deemed or shall constitute a waiver
of any other provisions hereof (whether or not similar) nor shall such waiver
constitute a continuing waiver.

 

10.                                 Notification
and Defense of Claim: The Indemnitee agrees to notify the
Company promptly in writing upon being served with any summons, citation,
subpoena, complaint, indictment, information, or other document relating to any
matter which may be subject to indemnification hereunder, whether civil,
criminal, or investigative; provided. however, that the failure of the
Indemnitee to give such notice to the Company shall not adversely affect the
Indemnitee’s rights under this Agreement except to the extent the Company has
been materially prejudiced as a direct result of such failure. Nothing in this
Agreement shall constitute a waiver of the Company’s right to seek participation
at its own expense in any Proceeding which may give rise to indemnification
hereunder.

 

11.                                 Notices:
All notices, requests, demands, and other communications hereunder shall be in
writing and shall be deemed to have been duly given if: (i) delivered by
hand and receipted for by the party to whom said notice or other communication
shall have been directed; or (ii) mailed by certified or registered mail
with postage 

 

10

 

prepaid, on the third business day after the date on which it is so
mailed, in either case:

 

(a)                                  if
to the Indemnitee, at the address indicated on the signature page hereof;

 

(b)                                 if to the Company:

 

Chase Packaging Corporation

636 River Road

Fair Haven, NJ  07704

 

or to such address as may have been furnished to either party by the
other Party.

 

12                                    Governing Law: The parties hereto
agree that this Agreement shall be governed by, and construed and enforced in
accordance with, the laws of the State of Texas.

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the day and year first above written.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CHASE PACKAGING CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Allen T. McInnes,

  
	
   

  	
   

  	
  President and CEO

  
	
   

  	
   

  	
   

  
	
   

  	
  INDEMNITEE:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Printed Name of Indemnitee)

  
	
   

  	
   

  	
   

  
	
   

  	
  (Address)

  

 

11

 

Exhibit “A”

to

Indemnification Agreement

 

I.                                         Change
in the ownership of a corporation

 

(A)  In general.  A change
in the ownership of a corporation occurs on the date that any one person, or
more than one person acting as a group, acquires ownership of stock of the
corporation that, together with stock held by such person or group, constitutes
more than 50 percent of the total fair market value or total voting power of
the stock of such corporation.  However,
if any one person, or more than one person acting as a group, is considered to
own more than 50 percent of the total fair market value or total voting power
of the stock of a corporation, the acquisition of additional stock by the same
person or persons is not considered to cause a change in the ownership of the
corporation (or to cause a change in the effective control of the
corporation).    An increase in the
percentage of stock owned by any one person, or persons acting as a group, as a
result of a transaction in which the corporation acquires its stock in exchange
for property will be treated as an acquisition of stock.  This applies only when there is a transfer of
stock of a corporation (or issuance of stock of a corporation) and stock in
such corporation remains outstanding after the transaction.

 

(B)                                Persons
acting as a group.  Persons will not be
considered to be acting as a group solely because they purchase or own stock of
the same corporation at the same time, or as a result of the same public
offering.  However, persons will be
considered to be acting as a group if they are owners of a corporation that
enters into a merger, consolidation, purchase, or acquisition of stock, or
similar business transaction with the corporation.  If a person, including an entity, owns stock
in both corporations that enter into a merger, consolidation, purchase, or
acquisition of stock, or similar transaction, such shareholder is considered to
be acting as a group with other shareholders in a corporation prior to the
transaction giving rise to the change and not with respect to the ownership
interest in the other corporation.

 

II.                                     Change
in the effective control of a corporation.

 

(A)                              In
general.  Notwithstanding that a
corporation has not undergone a change in ownership, (see above), a change in
the effective control of a corporation occurs only on the date that either –

 

(1)                                  Any
one person, or more than one person acting as a group, acquires (or has
acquired during the 12-month period ending on the date of the most recent
acquisition by such person or persons) ownership of stock of the corporation
possessing 35 percent or more of the total voting power of the stock of such
corporation; or

 

(2)                                  A
majority of members of the corporation’s board of directors is replaced during
any 12-month period by directors whose appointment or election is not endorsed
by a majority of the members of the corporation’s board of directors prior to
the election, provided that for purposes of this paragraph  the term corporation refers solely to the
relevant corporation 

 

1

 

for which no other corporation is a majority shareholder for purposes
of that paragraph (for example, if Corporation A is a publicly held corporation
with no majority shareholder, and Corporation A is the majority shareholder of
Corporation B, which is the majority shareholder of Corporation C, the term
corporation for purposes of this paragraph would refer solely to Corporation
A).

 

(B)                                Multiple
change in control events.  A change in
effective control also may occur in any transaction in which either of the two
corporations involved in the transaction has a change in control event.  Thus, for example, assume Corporation P
transfers more than 40 percent of the total gross fair market value of its
assets to Corporation O in exchange for 35 percent of O’s stock.  P has undergone a change in ownership of a
substantial portion of its asset, and O has a change in effective control.

 

(C)                                Acquisition
of additional control.  If any one
person, or more than one person acting as a group, is considered to effectively
control a corporation, the acquisition of additional control of the corporation
by the same person or persons is not considered to cause a change in the
effective control of the corporation (or to cause a change in the ownership of
the corporation).

 

(D)                               Persons
acting as a group.  Persons will not be
considered to be acting as a group solely because they purchase or own stock of
the same corporation at the same time, or as a result of the same public
offering.  However, persons will be
considered to be acting as a group if they are owners of a corporation that
enters into a merger, consolidation, purchase, or acquisition of stock, or
similar business transaction with the corporation.  If a person, including an entity, owns stock
in both corporations that enter into a merger, consolidation, purchase, or
acquisition of stock, or similar transaction, such shareholder is considered to
be acting as a group with other shareholders in a corporation only with respect
to the ownership in that corporation prior to the transaction giving rise to
the change and not with respect to the ownership interest in the other
corporation.

 

III.                                 Change
in the ownership of a substantial portion of a corporation’s assets.

 

(A)                              In
general.  Change in the ownership of a
substantial portion of a corporation’s assets. 
A change in the ownership of a substantial portion of a corporation’s
assets occurs on the date that any one person, or more than one person acting
as a group, acquires (or has acquired during the 12-month period ending on the
date of the most recent acquisition by such person or person) assets from the
corporation that have a total gross fair market value equal to or more than 40
percent of the total gross fair market value of all of the assets of the
corporation immediately prior to such acquisition or acquisitions.  For this purpose, gross fair market value
means the value of the assets of the corporation, or the value of the assets
being disposed of, determined without regard to any liabilities associated with
such assets.

 

(B)                                Transfers
to a related person.

 

(1)                                  There
is no change in control event when there is a transfer to an entity that is
controlled by the shareholders of the transferring corporation immediately
after the 

 

2

 

transfer.  A transfer of assets
by a corporation is not treated as a change in the ownership of such assets if
the assets are transferred to –

 

(i)  A shareholder of the corporation (immediately before the
asset transfer) in exchange for or with respect to its stock;

 

(ii)  An entity, 50 percent or more of the total value or voting
power of which is owned, directly or indirectly, by the corporation;

 

(iii)  A person, or more than one person acting as a group, that
owns, directly or indirectly, 50 percent or more of the total value or voting
power of all the outstanding stock of the corporation; or

 

(iv)  An entity, at least 50 percent of the total value or voting
power of which is owned, directly or indirectly, by a person described in “(iii)”
immediately preceding.

 

(2)                                  A
person’s status is determined immediately after the transfer of the
assets.  For example, a transfer to a
corporation in which the transferor corporation has no ownership interest
before the transaction, but which is a majority-owned subsidiary of the
transferor corporation after the transaction is not treated as a change in the
ownership of the assets of the transferor corporation.

 

(C)                                Persons
acting as a group.  Persons will not be
considered to be acting as a group solely because they purchase assets of the
same corporation at the same time. 
However, persons will be considered to be acting as a group if they are
owners of a corporation that enters into a merger, consolidation, purchase, or
acquisition of assets, or similar business transaction with the
corporation.  If a person, including an
entity shareholder, owns stock in both corporations that enter into a merger,
consolidation, purchase, or acquisition of assets, or similar transaction, such
shareholder is considered to be acting as a group with other shareholders in a
corporation only to the extent of the ownership in that corporation prior to
the transaction giving rise to the change and not with respect to the ownership
interest in the other corporation.

 

3

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