Document:

EX-10.1

 Exhibit 10.1 

EXECUTION COPY 

SEPARATION AND RELEASE AGREEMENT 

THIS SEPARATION AND RELEASE AGREEMENT (this “Release”) is made by and between DAVID STERN (“Employee”) and
DESTINATION MATERNITY CORPORATION (the “Company”). 
 WHEREAS, the Company terminated the Employee’s employment
pursuant to that certain Executive Employment Agreement, by and between the Company and Employee, dated July 20, 2016 (as amended or supplemented from time to time, the “Agreement”), effective at the close of business on
August 10, 2018 (the “Effective Time”); 
 WHEREAS, in connection with the termination of Employee’s employment,
the Company, in exchange for Employee’s promises and covenants in this Release and subject to Employee’s execution, delivery, and non-revocation of this Release, desires to provide Employee with
certain rights and benefits as set forth in this Release; and 
 WHEREAS, capitalized terms used but not defined herein shall have the
meanings given to them in the Agreement. 
 NOW THEREFORE, in consideration of these premises and the mutual promises contained herein, and
intending to be legally bound hereby, the parties agree as follows: 
 1. Termination of Employment; Consideration. 

1.1.    Employee’s employment with the Company and its affiliates shall terminate as of the Effective Time. Employee
hereby resigns as an officer of the Company and an officer and director of each of its subsidiaries and affiliates, and from any other positions he holds with the Company and its subsidiaries and affiliates (including, without limitation, as a
trustee and committee member with respect to the Company’s 401(k) plan or other employee benefit plans), effective as of the Effective Time. 

1.2.    Notwithstanding anything to the contrary in the Agreement, and subject to Employee’s timely execution and
delivery (that is, within twenty-one (21) days following the Effective Time) and non-revocation of this Release and continued compliance with his promises and
covenants hereunder, the Company shall provide Employee with the following payments and benefits (collectively, the “Separation Benefits”): 
  

	 	(i)	 Severance in an aggregate amount of $405,000, payable in equal installments on the Company’s regular
payroll schedule over the twelve (12)-month period (the “Severance Period”) commencing on the Company’s first regular payroll date that is at least fifteen (15) days after this Release has been delivered.

  

	 	(ii)	 A performance bonus (as described in Section 4.2 of the Agreement) for the 2018 fiscal year, based on
actual performance and prorated based on the number of days in such 2018 fiscal year that Employee remained employed with the Company, payable at the same time and in the same manner as such performance bonus would have been paid absent
Employee’s termination. 

	 	(iii)	 Subject to Employee’s timely election of, and continued eligibility for, continued coverage for Employee
and his eligible dependents under the Company’s health and welfare benefit plans pursuant to the federal law known as “COBRA,” the Company shall pay the applicable COBRA premiums during the Severance Period (provided, that if such
payment would result in adverse tax consequences under Section 105(h) of the Internal Revenue Code of 1986, as amended, then the Company shall instead pay a monthly amount during the Severance Period directly to Employee, on an after-tax basis, equal to the applicable COBRA premiums for each such month). 

1.3.    Regardless of whether Employee executes or revokes this Release, the Company will pay Employee all accrued and
unpaid (i) Base Salary, (ii) vacation time, and (iii) reimbursable business expenses, subject to and in accordance with the Company’s Travel Policy, dated November 10, 2016 (including, without limitation, submission of
receipts), in each case of (i), (ii), and (iii) through the date of his cessation of employment with the Company as soon as administratively feasible following the Effective Time. 

1.4.    Employee acknowledges that: (i) the payments, rights, and benefits set forth in Sections 1.2 and 1.3
constitute full settlement of all his rights under the Agreement, (ii) he has no entitlement under any other severance or similar arrangement maintained by the Company, and (iii) except as otherwise provided specifically in this Release,
the Company does not and will not have any other liability or obligation to Employee. Employee further acknowledges that, in the absence of his execution (and non-revocation) of this Release, the benefits and
payments specified in Section 1.2 above would not be provided to him. Notwithstanding anything to the contrary in the Agreement, the Company’s Amended and Restated 2005 Equity Incentive Plan (the “Plan”), any equity award
agreement issued thereunder and any other equity award agreement issued to Employee, Employee acknowledges and agrees that, as of the Effective Time, all of Employee’s unvested equity awards granted by the Company shall be immediately forfeited
for no consideration. Employee’s vested options shall remain outstanding for ninety (90) days following the Effective Time in accordance with Section 7(d)(ii) of the Plan. 

2. Employee’s Release. 

2.1.    Employee hereby fully and forever releases and discharges the Company, its parents and subsidiaries and each of
their respective predecessors, successors, assigns, stockholders, affiliates, officers, directors, trustees, employee benefit plans and their administrators and fiduciaries, employees, agents and attorneys, past and present (the Company and each
such person or entity is referred to as a “Released Person”) from any and all claims, demands, liens, agreements, contracts, covenants, actions, suits, causes of action, obligations, controversies, debts, costs, expenses, damages,
judgments, orders, and liabilities, of whatever kind or nature, direct or indirect, in law, equity, or otherwise, whether known or unknown, arising through the date of this Release out of, or in any way related to, Employee’s employment by the
Company or the termination thereof, including, but not limited to, any claims for relief or causes of action under the Age Discrimination in Employment Act, 29 

  
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U.S.C. § 621 et seq., or any other federal, state, or local statute, ordinance, or regulation regarding discrimination in employment, and any claims, demands, or actions based upon
alleged wrongful or retaliatory discharge or breach of contract under any state or federal law. 
 2.2.    Employee
expressly represents that he has not filed a lawsuit or initiated any other administrative proceeding against a Released Person and that he has not assigned any claim against a Released Person. Employee further promises not to initiate a lawsuit or
to bring any other claim against any Released Person arising out of or in any way related to Employee’s employment by the Company or the termination of that employment. This Release will not prevent Employee from filing a charge with the Equal
Employment Opportunity Commission (or similar state agency) or participating in any investigation conducted by the Equal Employment Opportunity Commission (or similar state agency); provided, however, that any claims by Employee for personal
relief in connection with such a charge or investigation (such as reinstatement or monetary damages) would be barred. 

2.3.    The foregoing will not be deemed to release the Company from (a) claims solely to enforce the terms of this
Release (including claims under Section 1.2), (b) claims for benefits (not including severance benefits) under the Company’s employee welfare benefit plans and employee pension benefit plans, subject to the terms and conditions of those
plans, or (c) claims for defense and indemnification under the Company’s By-Laws or policies of insurance. 

3. Company Release. 

3.1.    Subject to Employee’s timely execution and delivery (that is, within
twenty-one (21) days following the Effective Time) and non-revocation of this Release and continued compliance with his promises and covenants hereunder, the
Company hereby fully and forever releases and discharges Employee and his executors, administrators, and heirs from any and all claims, demands, liens, agreements, contracts, covenants, actions, suits, causes of action, obligations, controversies,
debts, costs, expenses, damages, judgments, orders, and liabilities, of whatever kind or nature, direct or indirect, in law, equity, or otherwise, whether known or unknown, arising through the date of this Release out of Employee’s service to
the Company or the termination thereof. 
 3.2.    The Company expressly represents that it has not filed a lawsuit or
initiated any other administrative proceeding against Employee and that it has not assigned any claim against Employee. The Company further promises not to initiate a lawsuit or to bring any other claim against Employee arising out of or in any way
related to Employee’s service to the Company or the termination thereof that the Company has released in Section 3.1 above. 

3.3.    The foregoing will not be deemed to release Employee from (a) claims to enforce Section 6,
Section 7, or Section 8 of the Agreement, (b) claims arising from acts or omissions by Employee that would constitute a crime, fraudulent activity, or a breach of fiduciary duty, (c) claims that are not known as of the date of
this Release to any member of the Company’s Board of Directors, or (d) claims to enforce the terms of this Release, including Employee’s representation in Section 11 of this Release. 

  
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 4.    Restrictive Covenants. Employee acknowledges that his
covenants contained in Section 6, Section 7, and Section 8 of the Agreement will survive the termination of his employment. Employee affirms that those covenants are reasonable and necessary to protect the legitimate interests of the
Company, that he received adequate consideration in exchange for agreeing to those restrictions, and that he will abide by those restrictions. Employee expressly and specifically acknowledges that he has fully complied with Section 7 of the
Agreement, which requires Employee to promptly return to the Company as of the Effective Time all documents, copies thereof, and other materials in Employee’s possession or control pertaining to the business of the Company and its customers,
including, but not limited to, Confidential Information (and each and every copy, disk, abstract, summary, or reproduction of the same made by or for Employee or acquired by Employee); provided, that Employee shall be permitted to retain a copy of
(i) his personal contacts/rolodex, and (ii) documents related to Employee’s compensation, benefits, or terms of employment with the Company, including the Agreement, this Release, the Plan and any of Employee’s equity award
agreements thereunder (or similar equity award agreements issued by the Company to Employee), and Employee’s pay stubs. 

5.    Non-Disparagement. Employee will not disparage any Released Person or
otherwise take any action which could reasonably be expected to adversely affect the personal or professional reputation of any Released Person. Similarly, the Company (meaning, solely for this purpose, the executive officers and directors of the
Company and other persons authorized to make official communications on behalf of the Company) will not disparage Employee or otherwise take any action which could reasonably be expected to adversely affect the personal or professional reputation of
Employee (provided, that the Company’s truthful statements regarding the facts related to Employee’s employment with the Company or the termination thereof shall not be prohibited). Notwithstanding the foregoing, in no event will any
truthful, legally required disclosure or action be deemed to violate this Section, regardless of the content of such disclosure or the nature of such action. 

6.    Disclosures. Employee and the Company agree that nothing in this Agreement prevents or prohibits Employee
from (i) making any truthful disclosure of relevant and necessary information or documents in connection with any charge, action, investigation, or proceeding relating to this Agreement, or as required by law or legal process;
(ii) participating, cooperating, or testifying in any charge, action, investigation, or proceeding with, or providing information to, any self-regulatory organization, governmental agency, or legislative body, and/or pursuant to the
Sarbanes-Oxley Act, or (iii) filing, testifying, participating in or otherwise assisting in a proceeding relating to an alleged violation of any federal, state or municipal law relating to fraud, or any rule or regulation of the Securities and
Exchange Commission or any self-regulatory organization. To the extent permitted by law, upon receipt of any subpoena, court order, or other legal process compelling the disclosure of any such information or documents, Employee agrees to give prompt
written notice to the Company so as to permit the Company to protect its interests in confidentiality to the fullest extent possible. 

7.    Cooperation. Employee further agrees that, subject to reimbursement of any related, reasonable, and required
expenses in accordance with the Company’s expense reimbursement policies and procedures, he will cooperate fully with the Company and its counsel with respect to any litigation, investigations, or governmental proceedings in which Employee was
in any 

  
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way involved during his employment with the Company, and any transition matters in which the Company believes that Employee’s cooperation would be helpful. Employee will render such
cooperation in a timely manner on reasonable notice from the Company, provided that (i) the Company will attempt to limit the need for Employee’s cooperation under this Section so as not to unduly interfere with his other personal and
professional commitments, and (ii) such cooperation shall not exceed an aggregate of ten (10) hours per calendar month unless Employee and the Company mutually agree, in good faith, on compensation for cooperation services rendered in
excess of such ten (10) hours per calendar month. 
 8.    Notice. Any notice or communication required or
permitted under this Agreement shall be made in writing and sent by certified or registered mail, return receipt requested, addressed as follows: 

  If to Employee: to the address in the Company’s personnel files. 

  If to Company:        Destination Maternity Corporation 

                     
    232 Strawbridge Drive 

                     
    Moorestown, New Jersey 08057 

                     
    Attn: General Counsel 
 or to such other address as either party may from time to time duly specify by notice given to the other
party in the manner specified above. 
 9.    Rescission Right. Employee expressly acknowledges
and recites that (a) he has read and understands the terms of this Release in their entirety, (b) he has entered into this Release knowingly and voluntarily, without any duress or coercion; (c) he has been advised orally and is hereby
advised in writing to consult with an attorney with respect to this Release before signing it; (d) he was provided twenty-one (21) calendar days after receipt of the Release to consider its terms
before signing it; and (e) he is provided seven (7) calendar days from the date of signing to terminate and revoke this Release, in which case this Release shall be unenforceable, null, and void. Employee may revoke this Release during
those seven (7) days by providing written notice of revocation to the Company at the address specified in Section 8 herein. For the avoidance of doubt, if Employee fails to execute and deliver this Release to the Company within twenty-one (21) days following the Effective Time, or timely revokes it in accordance with this Section 9, the Company’s obligation to provide the Separation Benefits shall immediately terminate.

 10.    Challenge. If Employee violates or challenges the enforceability of this Release (other than for
purposes of bringing a claim not released as provided in Section 2.3), no further Separation Benefits will be due to Employee. 

11.    Certain Specific Representations. Employee represents and warrants to the Company that no act or event
constituting “Cause” as defined in Section 5.6.1 of the Agreement has occurred. The Company represents and warrants that it will not seek repayment of Employee’s $125,000 retention bonus that was paid to Employee on or about
October 19, 2017, pursuant to that certain Retention Agreement, by and between Employee and the Company, dated as of October 19, 2017. 

  
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	 	12.	 Miscellaneous. 

12.1.    No Admission of Liability. This Release is not to be construed as an admission of any violation of any
federal, state, or local statute, ordinance, or regulation or of any duty owed by the Company to Employee. There have been no such violations, and the Company specifically denies any such violations. 

12.2.    Severability. Whenever possible, each provision of this Release will be interpreted in such manner as to
be effective and valid under applicable law. However, if any provision of this Release is held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability will not affect any other provision, and this
Release will be reformed, construed, and enforced as though the invalid, illegal, or unenforceable provision had never been herein contained. 

12.3.    Entire Agreement; Amendments. Except as otherwise provided herein, this Release contains the entire
agreement and understanding of the parties hereto relating to the subject matter hereof, and merges and supersedes all prior and contemporaneous discussions, agreements, and understandings of every nature relating to the subject matter hereof. This
Release may not be changed or modified, except by an agreement in writing signed by each of the parties hereto. 

12.4.    Withholding. The Company shall be entitled to deduct and withhold from all payments and benefits under
this Agreement (including, without limitation, the Separation Benefits) all applicable federal, state, local, and non-U.S. taxes, and all other appropriate or required deductions. 

12.5.    Section 409A; Governing Law and Enforcement. Sections 5.4 and 10.4 of the Agreement are incorporated by
reference, mutatis mutandis, as though fully set forth herein. 
 12.6.    Counterparts and Facsimiles.
This Release may be executed, including execution by facsimile, portable document format (.pdf), or other electronic signature, in multiple counterparts, each of which shall be deemed an original, and all of which together shall be deemed to be one
and the same instrument. 
 [Signature page follows.] 

  
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 IN WITNESS WHEREOF, the Company has caused this Release to be executed by its duly
authorized officer, and Employee has executed this Release, in each case as of August 13, 2018, respectively. 
  

			
	DESTINATION MATERNITY CORPORATION
		
	By:	 	 /s/ Marla A. Ryan

	Name & Title: Marla A. Ryan, CEO
	
	DAVID STERN
	
	 /s/ David Stern

 [Signature Page to Destination Maternity Separation Agreement]Exhibit

Exhibit 4(b)

	
	
	 

SOUTHWESTERN ELECTRIC POWER COMPANY

and

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

___________________

ELEVENTH SUPPLEMENTAL INDENTURE

Dated as of September 1, 2016

Supplemental to the Indenture
dated as of February 25, 2000

2.75% Senior Notes, Series K, due 2026

	
	
	 

ELEVENTH SUPPLEMENTAL INDENTURE, dated as of September 1, 2016, between SOUTHWESTERN ELECTRIC POWER COMPANY, a corporation duly organized and existing under the laws of the State of Delaware (the “Company”), and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association formed under the laws of the United States, as Trustee under the Original Indenture referred to below (the “Trustee”). 

RECITALS OF THE COMPANY

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

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

The Company desires to create a series of the Senior Notes in an aggregate principal amount of $400,000,000 to be designated the “2.75% Senior Notes, Series K, due 2026” (the “Series K Notes”), and all action on the part of the Company necessary to authorize the issuance of the Series K Notes under the Original Indenture and this Eleventh Supplemental Indenture has been duly taken.

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

NOW, THEREFORE, THIS ELEVENTH SUPPLEMENTAL INDENTURE WITNESSETH:

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

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ARTICLE ONE
Definitions

SECTION 101.    Definitions.

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

ARTICLE TWO
Terms and Issuance of the Series K Notes

SECTION 201.    Issue of Series K Notes.

A series of Senior Notes which shall be designated the “2.75%  Senior Notes, Series K, due 2026” shall be executed, authenticated and delivered from time to time in accordance with the provisions of, and shall in all respects be subject to, the terms, conditions and covenants of, the Original Indenture and this Eleventh Supplemental Indenture (including the form of Series K Note set forth in Exhibit A hereto).  The aggregate principal amount of the Series K Notes which may be authenticated and delivered under this Eleventh Supplemental Indenture shall initially be $400,000,000, and such principal amount of the Series K Notes may be increased from time to time.  All Series K Notes need not be issued at the same time and such series may be reopened at any time, without the consent of any Holder, for the issuance of additional Series K Notes.  Any such additional Series K Notes will have the same interest rate, maturity and other terms as those initially issued (other than the date of issuance, the issue price and, in some circumstances, the initial interest accrual date and initial interest payment date).  

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

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

SECTION 203.    Depositary for Global Securities.

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

SECTION 204.    Restrictions on Liens.

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

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So long as any of the Series K Notes are outstanding, the Company will not create or suffer to be created or to exist any additional mortgage, pledge, security interest, or other lien (collectively “Liens”) on any of its utility properties or tangible assets now owned or hereafter acquired to secure any indebtedness for borrowed money (“Secured Debt”), without providing that the Series K Notes will be similarly secured.  This restriction does not apply to the Company's subsidiaries, nor will it prevent any of them from creating or permitting to exist Liens on their property or assets to secure any Secured Debt.  In addition, this restriction does not prevent the creation or existence of: 

	
			
	 
	(a)
	Liens on property existing at the time of acquisition or construction of such property (or created within one year after completion of such acquisition or construction), whether by purchase, merger, construction or otherwise, or to secure the payment of all or any part of the purchase price or construction cost thereof, including the extension of any Liens to repairs, renewals, replacements, substitutions, betterments, additions, extensions and improvements then or thereafter made on the property subject thereto;

	 
	 
	 

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

	 
	 
	 

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

	 
	 
	 

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

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

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

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

SECTION 205.    Place of Payment.

The Place of Payment in respect of the Series K Notes will be at the principal office or place of business of the Trustee or its successor in trust under the Indenture, which, at the date

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hereof, is located at 2 North LaSalle Street, Chicago, IL  60602, Attention: Corporate Trust Administration.

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SECTION 206.  Optional Redemption.

The Series K Notes may be redeemed at the Company’s option at any time upon no more than 60 and not less than 30 days’ notice by mail.  At any time prior to July 1, 2026, the Company may redeem the Series K Notes either as a whole or in part at a redemption price equal to the greater of (1) 100% of the principal amount of the Series K Notes being redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Series K Notes being redeemed that would be due if such Series K Notes matured on July 1, 2026 (excluding the portion of any such interest accrued to but excluding the date of redemption), discounted (for purposes of determining present value) to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 20 basis points, plus, in each case, accrued and unpaid interest thereon to, but excluding, the date of redemption.  At any time on or after July 1, 2026, the Company may redeem the Series K Notes in whole or in part at 100% of the principal amount of the Series K Notes being redeemed, plus accrued and unpaid interest thereon to but excluding the date of redemption.

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term (“remaining life”) of the Series K Notes  (assuming, for this purpose, that the Series K Notes matured on July 1, 2026) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining life of the Series K Notes.

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

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

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

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

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

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using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date.

SECTION 207.    Sinking Funds.

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

SECTION 208.    Regular Record Date.

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

ARTICLE THREE
Miscellaneous

SECTION 301.    Execution as Supplemental Indenture.

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

SECTION 302.    Conflict with Trust Indenture Act.

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

SECTION 303.    Effect of Headings.

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

SECTION 304.    Successors and Assigns.

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

SECTION 305.    Separability Clause.

In case any provision in this Eleventh Supplemental Indenture or in the Series K 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.

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SECTION 306.    Benefits of Eleventh Supplemental Indenture.

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

SECTION 307.    Execution and Counterparts.

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

SECTION 308.     Certain Tax Information.  

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

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

	
					
	 
	 
	SOUTHWESTERN ELECTRIC POWER COMPANY

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Renee V. Hawkins
	 

	 
	 
	Name:
	Renee V. Hawkins
	 

	 
	 
	Title:
	Assistant Treasurer
	 

	 
	 
	 
	 
	 

	Attest:
	 
	 
	 
	 

	 
	 
	 
	 
	 

	/s/ Thomas G. Berkemeyer
	 
	 
	 

	Name:
	Thomas G. Berkemeyer
	 
	 
	 

	Title:
	Assistant Secretary
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	THE BANK OF NEW YORK MELLON

	 
	 
	TRUST COMPANY, N.A., as Trustee

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Lawrence M. Kusch
	 

	 
	 
	Authorized Signatory
	 

	 
	 
	 
	 
	 

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EXHIBIT A

This Security is a Global Security within the meaning of the Indenture hereinafter referred to and is registered in the name of a Depositary or a nominee of a Depositary.  This Security is exchangeable for Securities registered in the name of a Person other than the Depositary or its nominee only in the limited circumstances described in the Indenture, and no transfer of this Security (other than a transfer of this Security as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the depositary or another nominee of the Depositary) may be registered except in limited circumstances.

Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to Southwestern Electric Power Company or its agent for registration of transfer, exchange or payment, and any definitive certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL in as much as the registered owner hereof, Cede & Co., has an interest herein.

No. R-1

SOUTHWESTERN ELECTRIC POWER COMPANY
2.75% Senior Notes, Series K, due 2026
	
				
	CUSIP No. 845437 BP6
	$
	400,000,000
	

SOUTHWESTERN ELECTRIC POWER COMPANY, a corporation duly organized and existing under the laws of the State of Delaware (the “Company”, which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO. or registered assigns, the principal sum of FOUR HUNDRED Million Dollars ($400,000,000) on October 1, 2026 (the “Final Maturity”), and to pay interest thereon from September 29, 2016 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on April 1 and October 1 each year, commencing April 1, 2017, at the interest rate per annum specified above, until the principal amount shall have been paid or duly provided for.  Interest shall be computed on the basis of a 360-day year of twelve 30-day months.

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

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more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture.

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

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

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

The Securities of this Series are subject to redemption upon not less than 30 nor more than 60 days’ notice by mail to the Holders of such Securities at their addresses in the Security Register for such Series.  At any time prior to July 1, 2026, the Company may redeem the

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Securities either as a whole or in part at a redemption price equal to the greater of (1) 100% of the principal amount of the Securities being redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Securities being redeemed that would be due if such Securities matured on July 1, 2026 (excluding the portion of any such interest accrued to but excluding the date of redemption), discounted (for purposes of determining present value) to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 20 basis points, plus, in each case, accrued and unpaid interest thereon to, but excluding, the date of redemption.  At any time on or after July 1, 2026, the Company may redeem the Securities in whole or in part at 100% of the principal amount of the Securities being redeemed, plus accrued and unpaid interest thereon to but excluding the date of redemption.

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term (“remaining life”) of the Securities  (assuming, for this purpose, that the Securities matured on July 1, 2026) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining life of the Securities.

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

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

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

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

“Treasury Rate” means, with respect to any redemption, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date.

If notice has been given as provided in the Indenture and funds for redemption of any Securities (or any portion thereof) called for redemption shall have been made available on the

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

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

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

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

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of all series to be affected (voting as a class).  The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each Series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

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

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

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this Security and registered in such names as the Depositary for such Global Security shall direct.

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

The Securities of this Series are issuable only in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof.  As provided in the Indenture and subject to certain limitations therein set forth, Securities of this Series are exchangeable for a like aggregate principal amount of Securities of this Series and of like tenor of any authorized denomination, as requested by the Holder surrendering the same.

No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

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

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

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

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

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The Indenture provides that the Company, at its option, (a) will be discharged from any and all obligations in respect of the Securities (except for certain obligations to register the transfer or exchange of Securities, replace stolen, lost or mutilated Securities, maintain paying agencies and hold moneys for payment in trust) or (b) need not comply with certain restrictive covenants of the Indenture, in each case if the Company deposits, in trust, with the Trustee money or U.S. Government Obligations which, through the payment of interest thereon and principal thereof in accordance with their terms, will provide money, in an amount sufficient to pay all the principal of, and premium, if any, and interest, if any, on the Securities on the dates such payments are due in accordance with the terms of such Securities, and certain other conditions are satisfied.

No recourse shall be had for the payment of the principal of or the interest on this Security, or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, organizer, member, limited partner, stockholder, officer or director, as such, past, present or future, of the Company or any successor Person, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issuance hereof, expressly waived and released.

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

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

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

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Indenture or be valid or obligatory for any purpose. 

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

	
			
	 
	SOUTHWESTERN ELECTRIC POWER COMPANY

	 
	 
	 

	 
	 
	 

	 
	By:
	______________________

	 
	 
	Treasurer

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

	
			
	Dated:  September 29, 2016
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

	 
	 
	 

	 
	 
	 

	 
	By:
	______________________

	 
	 
	Authorized Signatory

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

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

_______________________________________

________________________________________________________________

________________________________________________________________
(PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF
________________________________________________________________
ASSIGNEE) the within Note and all rights thereunder, hereby
________________________________________________________________
irrevocably constituting and appointing such person attorney to 
________________________________________________________________
transfer such Note on the books of the Issuer, with full
________________________________________________________________
power of substitution in the premises.

Dated:________________________    _________________________

NOTICE:    The signature to this assignment must correspond with the name as written upon the face of the within Note in every particular, without alteration or enlargement or any change whatever and NOTICE:  Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agents Medallion Program (“STAMP”), the Stock Exchange Medallion Program (“SEMP”) or the New York Stock Exchange, Inc. Medallion Signature Program (“MSP”).

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