Document:

Revised as of June 27, 2001

Exhibit 4(f)(2)

 

$720,000,000

 

NORTHWESTERN

CORPORATION

 

$250,000,000

7 7/8% Notes due March 15, 2007

 

$470,000,000

8 3/4% Notes due March 15, 2012

 

REGISTRATION

RIGHTS AGREEMENT

 

March 13, 2002

 

Credit Suisse First Boston Corporation

Barclays Capital Inc.

Morgan Stanley & Co. Incorporated

as representatives of the Several Purchasers

c/o       Credit Suisse

First Boston Corporation

Eleven Madison Avenue

New York, New York 10010-3629

 

Dear Sirs:

 

NorthWestern Corporation, a Delaware corporation (the

“Company”),

proposes to issue and sell to the several initial purchasers named in schedule

A to the Purchase Agreement (as defined below) (the “Initial Purchasers”), upon

the terms set forth in a purchase agreement dated March 8, 2002 (the “Purchase

Agreement”), $250,000,000 aggregate principal amount of its 7 7/8%

Notes due March 15, 2007 and $470,000,000 aggregate principal amount of its 8

3/4% Notes due March 15, 2012 (the “Initial Securities”).  The Initial Securities will be issued

pursuant to an Indenture, dated as of November 1, 1998, as amended and

supplemented and as to be amended and supplemented by a supplemental indenture,

dated as of March 13, 2002 (together, the “Indenture”), between the Company and

JPMorgan Chase Bank (as successor to The Chase Manhattan Bank), as trustee (the

“Trustee”).  As an inducement to the Initial Purchasers

to enter into the Purchase Agreement, the Company agrees with the Initial

Purchasers, for the benefit of the Initial Purchasers and the holders of the

Securities (as defined below) (collectively the “Holders”), as follows:

 

1.  Registered Exchange Offer.  Unless not permitted by applicable law

(after the Company has complied with the ultimate paragraph of this Section 1),

the Company shall prepare and, not later than 90 days (such 90th day being a “Filing

Deadline”) after the date on which the Initial Purchasers purchase

the Initial Securities pursuant to the Purchase Agreement (the “Closing Date”),

file with the Securities and Exchange Commission (the “Commission”) a registration statement

(the “Exchange

Offer Registration Statement”) on an appropriate form under the

Securities Act of 1933, as amended (the “Securities Act”), with respect to a

proposed offer (the “Registered Exchange Offer”) to the Holders

of Transfer Restricted Securities (as defined in Section 6 hereof), who are not

prohibited by any law or policy of the Commission from participating in the

Registered Exchange Offer, to issue and deliver to such Holders, in exchange

for the Initial Securities, a like aggregate principal amount of debt

securities of the Company issued under the Indenture, identical in all material

respects to the Initial Securities and registered under the Securities Act (the

“Exchange

Securities”).  The Company

shall use its commercial reasonable efforts to (i) cause such Exchange Offer

Registration Statement to become effective under the Securities Act within 240

days after the Closing Date (such 240th day being an “Effectiveness Deadline”) and

(ii) keep the Exchange Offer Registration Statement effective for not less than

20 business days (or longer, if required by applicable law) after the date

notice of the Registered Exchange Offer is mailed to the Holders (such period

being called the “Exchange Offer Registration Period”).

 

 

If the Company commences the Registered Exchange

Offer, the Company (i) will be entitled to consummate the Registered Exchange

Offer 20 business days after such commencement (provided that the Company has

accepted all the Initial Securities theretofore validly tendered in accordance

with the terms of the Registered Exchange Offer) and (ii) will be required to

use its commercial reasonable efforts to consummate the Registered Exchange

Offer no later than 40 days after the date on which the Exchange Offer

Registration Statement is declared effective (such 40th day being the “Consummation

Deadline”).

 

Following the declaration of the effectiveness of the

Exchange Offer Registration Statement, the Company shall promptly commence the

Registered Exchange Offer, it being the objective of such Registered Exchange

Offer to enable each Holder of Transfer Restricted Securities electing to

exchange the Initial Securities for Exchange Securities (assuming that such

Holder is not an affiliate of the Company within the meaning of the Securities

Act, acquires the Exchange Securities in the ordinary course of such Holder’s

business and has no arrangements with any person to participate in the

distribution of the Exchange Securities and is not prohibited by any law or

policy of the Commission from participating in the Registered Exchange Offer)

to trade such Exchange Securities from and after their receipt without any

limitations or restrictions under the Securities Act and without material

restrictions under the securities laws of the several states of the United

States.

 

The Company acknowledges that, pursuant to current

interpretations by the Commission’s staff of Section 5 of the Securities Act,

in the absence of an applicable exemption therefrom, (i) each Holder which is a

broker-dealer electing to exchange Initial Securities, acquired for its own

account as a result of market making activities or other trading activities,

for Exchange Securities (an “Exchanging Dealer”), is required to deliver

a prospectus containing the information set forth in (a) Annex A hereto on the

cover, (b) Annex B hereto in the “Exchange Offer Procedures” section and the

“Purpose of the Exchange Offer” section, and (c) Annex C hereto in the “Plan of

Distribution” section of such prospectus in connection with a sale of any such

Exchange Securities received by such Exchanging Dealer pursuant to the

Registered Exchange Offer and (ii) an Initial Purchaser that elects to sell

Securities (as defined below) acquired in exchange for Initial Securities

constituting any portion of an unsold allotment, is required to deliver a

prospectus containing the information required by Items 507 or 508 of

Regulation S-K under the Securities Act, as applicable, in connection with such

sale.

 

The Company shall use its commercial reasonable efforts

to keep the Exchange Offer Registration Statement effective and to amend and

supplement the prospectus contained therein, in order to permit such prospectus

to be lawfully delivered by all persons subject to the prospectus delivery

requirements of the Securities Act for 180 days after consummation of the

Registered Exchange Offer; provided, however, that (i) in the

case where such prospectus and any amendment or supplement thereto must be

delivered by an Exchanging Dealer or an Initial Purchaser, such period shall be

the lesser of 180 days and the date on which all Exchanging Dealers and the

Initial Purchasers have sold all Exchange Securities held by them (unless such

period is extended pursuant to Section 3(j) below) and (ii) the Company shall

make such prospectus and any amendment or supplement thereto available to any

broker-dealer for use in connection with any resale of any Exchange Securities

for a period of not less than 180 days after the consummation of the Registered

Exchange Offer.

 

If, upon consummation of the Registered Exchange

Offer, any Initial Purchaser holds Initial Securities acquired by it as part of

its initial distribution, the Company, simultaneously with the delivery of the

Exchange Securities pursuant to the Registered Exchange Offer, shall issue and

deliver to such Initial Purchaser upon the written request of such Initial

Purchaser, in exchange (the “Private Exchange”) for the Initial

Securities held by such Initial Purchaser, a like principal amount of debt

securities of the Company issued under the Indenture and identical in all

material respects to the Initial Securities (the “Private Exchange Securities”).  The Initial Securities, the Exchange

Securities and the Private Exchange Securities are herein collectively called

the “Securities”.

 

In connection with the Registered Exchange Offer, the

Company shall:

 

(a) mail to each

Holder a copy of the prospectus forming part of the Exchange Offer Registration

Statement, together with an appropriate letter of transmittal and related documents;

 

(b) keep the

Registered Exchange Offer open for not less than 20 business days (or longer,

if required by applicable law) after the date notice thereof is mailed to the

Holders;

 

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(c) utilize the

services of a depositary for the Registered Exchange Offer with an address in

the Borough of Manhattan, The City of New York, which may be the Trustee or an

affiliate of the Trustee;

 

(d) permit Holders

to withdraw tendered Securities at any time prior to the close of business, New

York time, on the last business day on which the Registered Exchange Offer

shall remain open; and

 

(e) otherwise

comply with all applicable laws.

 

As soon as practicable after the close of the

Registered Exchange Offer or the Private Exchange, as the case may be, the

Company shall:

 

(x) accept for

exchange all the Securities validly tendered and not withdrawn pursuant to the

Registered Exchange Offer and the Private Exchange;

 

(y) deliver to the

Trustee for cancellation all the Initial Securities so accepted for exchange;

and

 

(z) cause the

Trustee to authenticate and deliver promptly to each Holder of the Initial

Securities, Exchange Securities or Private Exchange Securities, as the case may

be, equal in principal amount to the Initial Securities of such Holder so

accepted for exchange.

 

The Indenture will provide that the Exchange

Securities will not be subject to the transfer restrictions set forth in the

Indenture and that all the Securities will vote and consent together on all

matters as one class and that none of the Securities will have the right to

vote or consent as a class separate from one another on any matter.

 

Interest on each Exchange Security and Private

Exchange Security issued pursuant to the Registered Exchange Offer and in the

Private Exchange will accrue from the last interest payment date on which

interest was paid on the Initial Securities surrendered in exchange therefor

or, if no interest has been paid on the Initial Securities, from the date of

original issue of the Initial Securities.

 

Each Holder participating in the Registered Exchange

Offer shall be required to represent to the Company that at the time of the

consummation of the Registered Exchange Offer (i) any Exchange Securities

received by such Holder will be acquired in the ordinary course of business,

(ii) such Holder will have no arrangements or understanding with any person to

participate in the distribution of the Securities or the Exchange Securities

within the meaning of the Securities Act, (iii) such Holder is not an

“affiliate,” as defined in Rule 405 of the Securities Act, of the Company or if

it is an affiliate, such Holder will comply with the registration and

prospectus delivery requirements of the Securities Act to the extent applicable,

(iv) if such Holder is not a broker-dealer, that it is not engaged in, and does

not intend to engage in, the distribution of the Exchange Securities and (v) if

such Holder is a broker-dealer, that it will receive Exchange Securities for

its own account in exchange for Initial Securities that were acquired as a

result of market-making activities or other trading activities and that it will

be required to acknowledge that it will deliver a prospectus in connection with

any resale of such Exchange Securities.

 

Notwithstanding any other provisions hereof, the

Company will ensure that (i) any Exchange Offer Registration Statement and any

amendment thereto and any prospectus forming part thereof and any supplement

thereto complies in all material respects with the Securities Act and the rules

and regulations thereunder, (ii) any Exchange Offer Registration Statement and

any amendment thereto does not, when it becomes effective, contain an untrue

statement of a material fact or omit to state a material fact required to be

stated therein or necessary to make the statements therein not misleading and

(iii) any prospectus forming part of any Exchange Offer Registration Statement,

and any supplement to such prospectus, does not include an untrue statement of

a material fact or omit to state a material fact required to be stated therein

or necessary in order to make the statements therein, in the light of the

circumstances under which they were made, not misleading.

 

If following the date hereof there has been announced

a change in Commission policy with respect to exchange offers that in the

reasonable opinion of counsel to the Company raises a substantial question as

to whether the Registered Exchange Offer is permitted by applicable federal

law, the Company will seek a no-action letter or other favorable decision from

the Commission allowing the Company to consummate the Registered Exchange

 

3

 

Offer.  The

Company will pursue the issuance of such a decision to the Commission staff

level.  In connection with the

foregoing, the Company will take all such other actions as may be reasonably

requested by the Commission or otherwise required in connection with the

issuance of such decision (which need not be favorable), including without

limitation (i) participating in telephonic conferences with the Commission,

(ii) delivering to the Commission staff an analysis prepared by counsel to the

Company setting forth the legal bases, if any, upon which such counsel has

concluded that the Registered Exchange Offer should be permitted and (iii)

diligently pursuing a resolution (which need not be favorable) by the

Commission staff.

 

2.  Shelf Registration.  If, (i) because of any change in law or in

applicable interpretations thereof by the staff of the Commission, the Company

is not permitted to effect a Registered Exchange Offer, as contemplated by

Section 1 hereof, (ii) the Registered Exchange Offer is not consummated by the

270th day after the Closing Date, (iii) any Initial Purchaser so requests

within 30 days following consummation of the Exchange Offer with respect to the

Initial Securities (or the Private Exchange Securities) not eligible to be

exchanged for Exchange Securities in the Registered Exchange Offer and held by

it following consummation of the Registered Exchange Offer or (iv) any Holder

(other than an Exchanging Dealer) notifies the Company in writing prior to the

consummation of the Exchange Offer that, based upon an opinion of counsel, it

is not eligible to participate in the Registered Exchange Offer or, in the case

of any Holder (other than an Exchanging Dealer) that participates in the

Registered Exchange Offer, such Holder does not receive freely tradeable

Exchange Securities on the date of the exchange and any such Holder so

requests, the Company shall take the following actions (the date on which any

of the conditions described in the foregoing clauses (i) through (iv) occur,

including in the case of clauses (iii) or (iv) the receipt of the required

notice, being a “Trigger Date”):

 

(a) The Company

shall promptly (but in no event more than 30 days after the Trigger Date (such

30th day being a “Filing Deadline”)) file with the Commission

and thereafter use its best efforts to cause to be declared effective no later

than 240 days after the Trigger Date (such 240th day being an “Effectiveness

Deadline”) a registration statement (the “Shelf Registration Statement”

and, together with the Exchange Offer Registration Statement, a “Registration

Statement”) on an appropriate form under the Securities Act relating

to the offer and sale of the Transfer Restricted Securities by the Holders

thereof from time to time in accordance with the methods of distribution set

forth in the Shelf Registration Statement and Rule 415 under the Securities Act

(hereinafter, the “Shelf Registration”); provided, however,

that no Holder (other than an Initial Purchaser) shall be entitled to have the

Securities held by it covered by such Shelf Registration Statement unless such

Holder agrees in writing to be bound by all the provisions of this Agreement

applicable to such Holder.

 

(b) The Company

shall use its commercial reasonable efforts to keep the Shelf Registration

Statement continuously effective in order to permit the prospectus included therein

to be lawfully delivered by the Holders of the relevant Securities, for a

period of two years (or for such longer period if extended pursuant to Section

3(j) below) from the date of its effectiveness or such shorter period that will

terminate when all the Securities covered by the Shelf Registration Statement

(i) have been sold pursuant thereto or (ii) are distributed to the public

pursuant to Rule 144 under the Securities Act or are saleable pursuant to Rule

144(k) under the Securities Act.  The

Company shall be deemed not to have used its commercial reasonable efforts to

keep the Shelf Registration Statement effective during the requisite period if

it voluntarily takes any action that would result in Holders of Securities

covered thereby not being able to offer and sell such Securities during that

period, (i) unless such action is required by applicable law (ii) the Company

complies with this Agreement, or (iii) such action is taken by the Company in

good faith and for valid business reasons (not including avoidance by the

Company of its obligations hereunder), including the acquisition or divestiture

of assets, so long as the Company promptly thereafter complies with the

requirements of Section 3(j) hereof, if applicable.

 

(c)

Notwithstanding any other provisions of this Agreement to the contrary, the

Company shall cause the Shelf Registration Statement and the related prospectus

and any amendment or supplement thereto, as of the effective date of the Shelf

Registration Statement, amendment or supplement, (i) to comply in all material

respects with the applicable requirements of the Securities Act and the rules

and regulations of the Commission and (ii) not to contain any untrue statement

of a material fact or omit to state a material fact required to be stated

therein or necessary in order to make the statements therein, in light of the

circumstances under which they were made, not misleading.

 

4

 

No Holder of Transfer Restricted Securities may

include any of its Transfer Restricted Securities in any Shelf Registration

Statement pursuant to this Agreement unless and until such Holder furnished to

the Company in writing, within 20 days after receipt of a written request

therefor, the information specified in Item 507 or 508 of Regulation S-K, as

applicable, of the Securities Act for use in connection with any Shelf

Registration Statement or Prospectus or preliminary prospectus included

therein.  No Holder of Transfer

Restricted Securities shall be entitled to liquidated Additional Interest

pursuant to Section 6 hereof unless and until such Holder shall have provided

such information.  Each selling Holder

agrees to promptly furnish additional information required to be disclosed in

order to make the information previously furnished to the Company by such

Holder not materially misleading.

 

3. Registration

Procedures.  In connection

with any Shelf Registration contemplated by Section 2 hereof and, to the extent

applicable, any Registered Exchange Offer contemplated by Section 1 hereof, the

following provisions shall apply:

 

(a) The Company

shall (i) furnish to each Initial Purchaser, prior to the filing thereof with

the Commission, a copy of the Registration Statement and each amendment thereof

and each supplement, if any, to the prospectus included therein and, in the

event that an Initial Purchaser (with respect to any portion of an unsold

allotment from the original offering) is participating in the Registered

Exchange Offer or the Shelf Registration Statement, the Company shall use its

commercial reasonable efforts to reflect in each such document, when so filed

with the Commission, such comments as such Initial Purchaser reasonably may

propose; (ii) include the information set forth in Annex A hereto on the cover,

in Annex B hereto in the “Exchange Offer Procedures” section and the “Purpose

of the Exchange Offer” section and in Annex C hereto in the “Plan of

Distribution” section of the prospectus forming a part of the Exchange Offer

Registration Statement and include the information set forth in Annex D hereto

in the Letter of Transmittal delivered pursuant to the Registered Exchange

Offer; (iii) if requested by an Initial Purchaser, include the information

required by Items 507 or 508 of Regulation S-K under the Securities Act, as

applicable, in the prospectus forming a part of the Exchange Offer Registration

Statement; (iv) include within the prospectus contained in the Exchange Offer

Registration Statement a section entitled “Plan of Distribution,” reasonably

acceptable to the Initial Purchasers, which shall contain a summary statement

of the positions taken or policies made by the staff of the Commission with

respect to the potential “underwriter” status of any broker-dealer that is the

beneficial owner (as defined in Rule 13d-3 under the Securities Exchange Act of

1934, as amended (the “Exchange Act”)) of Exchange Securities received by such

broker-dealer in the Registered Exchange Offer (a “Participating Broker-Dealer”),

whether such positions or policies have been publicly disseminated by the staff

of the Commission or such positions or policies, in the reasonable judgment of

the Initial Purchasers based upon advice of counsel (which may be in-house

counsel), represent the prevailing views of the staff of the Commission; and

(v) in the case of a Shelf Registration Statement, include the names of the

Holders who propose to sell Securities pursuant to the Shelf Registration

Statement as selling securityholders.

 

(b) The Company

shall give written notice to the Initial Purchasers, the Holders of the

Securities and any Participating Broker-Dealer from whom the Company has

received prior written notice that it will be a Participating Broker-Dealer in

the Registered Exchange Offer (which notice pursuant to clauses (ii)-(v) hereof

shall be accompanied by an instruction to suspend the use of the prospectus

until the requisite changes have been made):

 

(i) when the

Registration Statement or any amendment thereto has been filed with the

Commission and when the Registration Statement or any post-effective amendment

thereto has become effective;

 

(ii) of any

request by the Commission for amendments or supplements to the Registration

Statement or the prospectus included therein or for additional information;

 

(iii) of the issuance

by the Commission of any stop order suspending the effectiveness of the

Registration Statement or the initiation of any proceedings for that purpose;

 

5

 

(iv) of the

receipt by the Company or its legal counsel of any notification with respect to

the suspension of the qualification of the Securities for sale in any

jurisdiction or the initiation or threatening of any proceeding for such

purpose; and

 

(v) of the

happening of any event that requires the Company to make changes in the

Registration Statement or the prospectus in order that the Registration

Statement or the prospectus do not contain an untrue statement of a material

fact nor omit to state a material fact required to be stated therein or necessary

to make the statements therein (in the case of the prospectus, in light of the

circumstances under which they were made) not misleading.

 

(c) The Company

shall make every reasonable effort to obtain the withdrawal at the earliest

possible time, of any order suspending the effectiveness of the Registration

Statement.

 

(d) The Company

shall furnish to each Holder of Securities included within the coverage of the

Shelf Registration, without charge, at least one copy of the Shelf Registration

Statement and any post-effective amendment thereto, including financial

statements and schedules, and, if the Holder so requests in writing, all

exhibits thereto (including those, if any, incorporated by reference).

 

(e) The Company

shall deliver to each Exchanging Dealer and each Initial Purchaser, and to any

other Holder who so requests, without charge, at least one copy of the Exchange

Offer Registration Statement and any post-effective amendment thereto,

including financial statements and schedules, and, if any Initial Purchaser or

any such Holder requests, all exhibits thereto (including those incorporated by

reference).

 

(f) The Company

shall, during the Shelf Registration Period, deliver to each Holder of

Securities included within the coverage of the Shelf Registration, without

charge, as many copies of the prospectus (including each preliminary

prospectus) included in the Shelf Registration Statement and any amendment or

supplement thereto as such person may reasonably request.  The Company consents, subject to the

provisions of this Agreement, to the use of the prospectus or any amendment or

supplement thereto by each of the selling Holders of the Securities in

connection with the offering and sale of the Securities covered by the

prospectus, or any amendment or supplement thereto, included in the Shelf

Registration Statement.

 

(g) The Company

shall deliver to each Initial Purchaser, any Exchanging Dealer, any

Participating Broker-Dealer and such other persons required to deliver a

prospectus following the Registered Exchange Offer, without charge, as many

copies of the final prospectus included in the Exchange Offer Registration

Statement and any amendment or supplement thereto as such persons may

reasonably request.  The Company

consents, subject to the provisions of this Agreement, to the use of the

prospectus or any amendment or supplement thereto by any Initial Purchaser, if

necessary, any Participating Broker-Dealer and such other persons required to

deliver a prospectus following the Registered Exchange Offer in connection with

the offering and sale of the Exchange Securities covered by the prospectus, or

any amendment or supplement thereto, included in such Exchange Offer

Registration Statement.

 

(h) Prior to any

public offering of the Securities pursuant to any Registration Statement the

Company shall use its commercial reasonable efforts to register or qualify or

cooperate with the Holders of the Securities included therein and their

respective counsel in connection with the registration or qualification of the

Securities for offer and sale under the securities or “blue sky” laws of such

states of the United States as any Holder of the Securities reasonably requests

in writing and do any and all other acts or things necessary or advisable to

enable the offer and sale in such jurisdictions of the Securities covered by

such Registration Statement; provided, however, that the Company shall not be

required to (i) qualify generally to do business in any jurisdiction where it

is not then so qualified or (ii) take any action which would subject it to

general service of process or to taxation in any jurisdiction where it is not

then so subject.

 

(i) The Company

shall cooperate with the Holders of the Securities to facilitate the timely

preparation and delivery of certificates representing the Securities to be sold

pursuant to any Registration 

 

6

 

Statement free of any

restrictive legends and in such denominations and registered in such names as

the Holders may request a reasonable period of time prior to sales of the

Securities pursuant to such Registration Statement.

 

(j) Upon the

occurrence of any event contemplated by paragraphs (ii) through (v) of Section

3(b) above during the period for which the Company is required to maintain an

effective Registration Statement, the Company shall promptly prepare and file a

post-effective amendment to the Registration Statement or a supplement to the

related prospectus and any other required document so that, as thereafter

delivered to Holders of the Securities or purchasers of Securities, the

prospectus will not contain an untrue statement of a material fact or omit to

state any material fact required to be stated therein or necessary to make the

statements therein, in light of the circumstances under which they were made,

not misleading.  If the Company notifies

the Initial Purchasers, the Holders of the Securities and any known

Participating Broker-Dealer in accordance with paragraphs (ii) through (v) of

Section 3(b) above to suspend the use of the prospectus until the requisite

changes to the prospectus have been made, then the Initial Purchasers, the

Holders of the Securities and any such Participating Broker-Dealers shall

suspend use of such prospectus, and the period of effectiveness of the Shelf

Registration Statement provided for in Section 2(b) above and the Exchange

Offer Registration Statement provided for in Section 1 above shall each be

extended by the number of days from and including the date of the giving of

such notice to and including the date when the Initial Purchasers, the Holders

of the Securities and any known Participating Broker-Dealer shall have received

such amended or supplemented prospectus pursuant to this Section 3(j).  Each Holder receiving a suspension notice

shall either (i) destroy any Prospectuses, other than permanent file copies,

then in such Holder’s possession which have been replaced by the Company with

more recently dated Prospectuses or (ii) deliver to the Company (at the

Company’s expense) all copies, other than permanent file copies, then in such

Holder’s possession of the Prospectus covering such Transfer Restricted

Securities that was current at the time of receipt of the suspension notice.

 

(k) Not later than

the effective date of the applicable Registration Statement, the Company will

provide a CUSIP number for the Initial Securities, the Exchange Securities or

the Private Exchange Securities, as the case may be, and provide the applicable

trustee with printed certificates for the Initial Securities, the Exchange

Securities or the Private Exchange Securities, as the case may be, in a form

eligible for deposit with The Depository Trust Company.

 

(l) The Company

will comply with all rules and regulations of the Commission to the extent and

so long as they are applicable to the Registered Exchange Offer or the Shelf

Registration and will make generally available to its security holders (or

otherwise provide in accordance with Section 11(a) of the Securities Act) an

earnings statement satisfying the provisions of Section 11(a) of the Securities

Act, including, Rule 158 thereunder, no later than 45 days after the end of a

12-month period (or 90 days, if such period is a fiscal year) beginning with

the first month of the Company’s first fiscal quarter commencing after the

effective date of the Registration Statement, which statement shall cover such

12-month period.

 

(m) The Company

shall cause the Indenture to be qualified under the Trust Indenture Act of

1939, as amended, in a timely manner and containing such changes, if any, as

shall be necessary for such qualification. 

In the event that such qualification would require the appointment of a

new trustee under the Indenture, the Company shall appoint a new trustee

thereunder pursuant to the applicable provisions of the Indenture.

 

(n) The Company

may require each Holder of Securities to be sold pursuant to the Shelf

Registration Statement to furnish to the Company such information regarding the

Holder and the distribution of the Securities as the Company may from time to

time reasonably require for inclusion in the Shelf Registration Statement, and

the Company may exclude from such registration the Securities of any Holder

that unreasonably fails to furnish such information within a reasonable time after

receiving such request.

 

(o) The Company

shall enter into such customary agreements (including, if requested, an

underwriting agreement in customary form) and take all such other action, if

any, as any Holder of the

 

7

 

Securities shall

reasonably request in order to facilitate the disposition of the Securities

pursuant to any Shelf Registration.

 

(p) In the case of

any Shelf Registration, the Company shall (i) make reasonably available for

inspection by the Holders of the Securities, any underwriter participating in

any disposition pursuant to the Shelf Registration Statement and any attorney,

accountant or other agent retained by the Holders of the Securities or any such

underwriter all relevant financial and other records, pertinent corporate

documents and properties of the Company and (ii) cause the Company’s officers,

directors, employees, accountants and auditors to supply all relevant

information reasonably requested by the Holders of the Securities or any such

underwriter, attorney, accountant or agent in connection with the Shelf

Registration Statement, in each case, as shall be reasonably necessary to

enable such persons, to conduct a reasonable investigation within the meaning

of Section 11 of the Securities Act; provided, however, that the foregoing

inspection and information gathering shall be coordinated on behalf of the

Initial Purchasers by you and on behalf of the other parties, by one counsel

designated by and on behalf of such other parties as described in Section 4

hereof; provided, however, that any non-public information shall be kept

confidential by the Holders or any underwriter, attorney, accountant or agent,

unless such disclosure is required by law or becomes available to the public

generally through a third party without an accompanying obligation of

confidentiality other than as a result of a disclosure of such information by

any such Holder, underwriter, attorney, accountant or agent.

 

(q) In the case of

any Shelf Registration, the Company, if requested by any Holder of Securities

covered thereby, shall cause (i) its counsel (which may be in-house counsel) to

deliver an opinion and updates thereof relating to the Securities in customary

form addressed to such Holders and the managing underwriters, if any, thereof

and dated, in the case of the initial opinion, the effective date of such Shelf

Registration Statement (it being agreed that the matters to be covered by such

opinion shall include, without limitation, the due incorporation and good

standing of the Company and its subsidiaries; the qualification of the Company

and its subsidiaries to transact business as foreign corporations; the due

authorization, execution and delivery of the relevant agreement of the type

referred to in Section 3(o) hereof; the due authorization, execution,

authentication and issuance, and the validity and enforceability, of the

applicable Securities; the absence of material legal or governmental

proceedings involving the Company and its subsidiaries; the absence of

governmental approvals required to be obtained in connection with the Shelf

Registration Statement, the offering and sale of the applicable Securities, or

any agreement of the type referred to in Section 3(o) hereof; the compliance as

to form of such Shelf Registration Statement and any documents incorporated by

reference therein and of the Indenture with the requirements of the Securities

Act and the Trust Indenture Act, respectively; and, as of the date of the

opinion and as of the effective date of the Shelf Registration Statement or

most recent post-effective amendment thereto, as the case may be, the absence

from such Shelf Registration Statement and the prospectus included therein, as

then amended or supplemented, and from any documents incorporated by reference

therein of an untrue statement of a material fact or the omission to state

therein a material fact required to be stated therein or necessary to make the

statements therein not misleading (in the case of any such documents, in the light

of the circumstances existing at the time that such documents were filed with

the Commission under the Exchange Act); (ii) its officers to execute and

deliver all customary documents and certificates and updates thereof reasonably

requested by any underwriters of the applicable Securities and (iii) its

independent public accountants and the independent public accountants with

respect to any other entity for which financial information is provided in the

Shelf Registration Statement to provide to the selling Holders of the

applicable Securities and any underwriter therefor a comfort letter in

customary form and covering matters of the type customarily covered in comfort

letters in connection with primary underwritten offerings, subject to receipt

of appropriate documentation as contemplated, and only if permitted, by

Statement of Auditing Standards No. 72.

 

(r) In the case of

the Registered Exchange Offer, if reasonably requested by any Initial Purchaser

that is required to deliver the prospectus contained in the Exchange Offer

Registration Statement, the Company shall cause (i) its counsel (which may be

in-house counsel) to deliver to such Initial Purchaser or such Participating

Broker-Dealer signed opinions in the form set forth in Sections 6(d) and (e) of

the Purchase Agreement with such changes as are customary in connection with

the preparation of a Registration Statement and (ii) its independent public

accountants and the independent public accountants

 

8

 

with respect to any other

entity for which financial information is provided in the Registration

Statement to deliver to such Initial Purchaser or such Participating

Broker-Dealer a comfort letter, in customary form, meeting the requirements as

to the substance thereof as set forth in Sections 6(a) and (b) of the Purchase

Agreement, with appropriate date changes.

 

(s) If a

Registered Exchange Offer or a Private Exchange is to be consummated, upon

delivery of the Initial Securities by Holders to the Company (or to such other

Person as directed by the Company) in exchange for the Exchange Securities or

the Private Exchange Securities, as the case may be, the Company shall mark, or

caused to be marked, on the Initial Securities so exchanged that such Initial Securities

are being canceled in exchange for the Exchange Securities or the Private

Exchange Securities, as the case may be; in no event shall the Initial

Securities be marked as paid or otherwise satisfied.

 

(t) The Company

will use its commercial reasonable efforts to (a) if the Initial Securities

have been rated prior to the initial sale of such Initial Securities, confirm

such ratings will apply to the Securities covered by a Registration Statement,

or (b) if the Initial Securities were not previously rated, cause the

Securities covered by a Registration Statement to be rated with the appropriate

rating agencies, if so requested by Holders of a majority in aggregate

principal amount of Securities covered by such Registration Statement, or by

the managing underwriters, if any.

 

(u) In the event

that any broker-dealer registered under the Exchange Act shall underwrite any

Securities or participate as a member of an underwriting syndicate or selling

group or “assist in the distribution” (within the meaning of the Conduct Rules

(the “Rules”)

of the National Association of Securities Dealers, Inc. (“NASD”)) thereof, whether as a

Holder of such Securities or as an underwriter, a placement or sales agent or a

broker or dealer in respect thereof, or otherwise, the Company will assist such

broker-dealer in complying with the requirements of such Rules, including,

without limitation, to the extent such requirement is based on an opinion of

counsel reasonably satisfactory to the Company, by (i) if such Rules, including

Rule 2720, shall so require, engaging a “qualified independent underwriter” (as

defined in Rule 2720) to participate in the preparation of the Registration

Statement relating to such Securities, to exercise usual standards of due

diligence in respect thereto and, if any portion of the offering contemplated

by such Registration Statement is an underwritten offering or is made through a

placement or sales agent, to recommend the yield of such Securities, (ii)

indemnifying any such qualified independent underwriter to the extent of the

indemnification of underwriters provided in Section 5 hereof and (iii)

providing such information to such broker-dealer as may be required in order

for such broker-dealer to comply with the requirements of the Rules.

 

(v) The Company

shall use its commercial reasonable efforts to take all other steps necessary

to effect the registration of the Securities covered by a Registration

Statement contemplated hereby.

 

4. Registration

Expenses.

 

(a) All expenses

incident to the Company’s performance of and compliance with this Agreement

will be borne by the Company, regardless of whether a Registration Statement is

ever filed or becomes effective, including without limitation;

 

(i) all

registration and filing fees and expenses;

 

(ii) all fees and

expenses of compliance with federal securities and state “blue sky” or

securities laws;

 

(iii) all expenses

of printing (including printing certificates for the Securities to be issued in

the Registered Exchange Offer and the Private Exchange and printing of

Prospectuses), messenger and delivery services and telephone;

 

(iv) all fees and

disbursements of counsel for the Company; and

 

9

 

(v) all fees and

disbursements of independent certified public accountants of the Company

(including the expenses of any special audit and comfort letters required by or

incident to such performance).

 

The Company will

bear its internal expenses (including, without limitation, all salaries and

expenses of its officers and employees performing legal or accounting duties),

the expenses of any annual audit and the fees and expenses of any person,

including special experts, retained by the Company.

 

(b) In connection

with any Registration Statement required by this Agreement, the Company will

reimburse the Initial Purchasers and the Holders of Transfer Restricted

Securities who are tendering Initial Securities in the Registered Exchange

Offer and/or selling or reselling Securities pursuant to the “Plan of

Distribution” contained in the Exchange Offer Registration Statement or the

Shelf Registration Statement, as applicable, for the reasonable fees and

disbursements of not more than one counsel, who shall be Dewey Ballantine LLP

unless another firm shall be chosen by the Holders of a majority in principal

amount of the Transfer Restricted Securities for whose benefit such

Registration Statement is being prepared.

 

5. Indemnification.

 

(a) The Company

agrees to indemnify and hold harmless each Holder of the Securities, any Participating

Broker-Dealer and each person, if any, who controls such Holder or such

Participating Broker-Dealer within the meaning of the Securities Act or the

Exchange Act (each Holder, any Participating Broker-Dealer and such controlling

persons are referred to collectively as the “Indemnified Parties”) from

and against any losses, claims, damages or liabilities, joint or several, or

any actions in respect thereof (including, but not limited to, any losses,

claims, damages, liabilities or actions relating to purchases and sales of the

Securities) to which each Indemnified Party may become subject under the

Securities Act, the Exchange Act or otherwise, insofar as such losses, claims,

damages or liabilities (or actions in respect thereof) arise out of or are

based upon (i) any untrue statement or alleged untrue statement of a material

fact contained in a Registration Statement or in any amendment or supplement

thereto, or arise out of, or are based upon the omission or alleged omission to

state therein a material fact required to be stated therein or necessary in

order to make the statements therein, not misleading or (ii) any untrue

statement or alleged untrue statement of a material fact contained in a

Prospectus or in any amendment or supplement thereto or in any preliminary

prospectus relating to a Shelf Registration, or arise out of, or are based

upon, the omission or alleged omission to state therein a material fact

required to be stated therein or necessary in order to make the statements

therein, in light of the circumstances under which they were made, not

misleading, and shall reimburse, as incurred, the Indemnified Parties for any

legal or other expenses reasonably incurred by them in connection with

investigating or defending any such loss, claim, damage, liability or action in

respect thereof; provided, however, that (i) the Company shall not be liable in

any such case to the extent that such loss, claim, damage or liability arises

out of or is based upon any untrue statement or alleged untrue statement or

omission or alleged omission made in a Registration Statement or prospectus or

in any amendment or supplement thereto or in any preliminary prospectus

relating to a Shelf Registration in reliance upon and in conformity with

written information pertaining to such Holder and furnished to the Company by

or on behalf of such Holder specifically for inclusion therein and (ii) with

respect to any untrue statement or omission or alleged untrue statement or

omission made in any preliminary prospectus, the indemnity agreement contained

in this subsection (a) shall not inure to the benefit of any Holder or

Participating Broker-Dealer from whom the person asserting any such losses,

claims, damages or liabilities purchased the Securities concerned, to the extent

that a prospectus relating to such Securities was required to be delivered by

such Holder or Participating Broker-Dealer under the Securities Act in

connection with such purchase and any such loss, claim, damage or liability of

such Holder or Participating Broker-Dealer results from the fact that there was

not sent or given to such person, at or prior to the written confirmation of

the sale of such Securities to such person, a copy of the final prospectus if

the Company had previously furnished copies thereof to such Holder or

Participating Broker-Dealer as required under this agreement.

 

(b) Each Holder of

the Securities, severally and not jointly, will indemnify and hold harmless the

Company and each person, if any, who controls the Company within the meaning of

the Securities Act or the Exchange Act from and against any losses, claims,

damages or liabilities or any actions in respect

 

10

 

thereof, to which the

Company or any such controlling person may become subject under the Securities

Act, the Exchange Act or otherwise, insofar as such losses, claims, damages,

liabilities or actions arise out of or are based upon (i) any untrue statement

or alleged untrue statement of a material fact contained in a Registration

Statement or in any amendment or supplement thereto or arise out of or are

based upon the omission or alleged omission to state therein a material fact

necessary in order to make the statements therein not misleading or (ii) any

untrue statement or alleged untrue statement of a material fact contained in a

Prospectus or in any amendment or supplement thereto or in any preliminary

prospectus relating to a Shelf Registration, or arise out of, or are based

upon, the omission or alleged omission to state therein a material fact

required to be stated therein or necessary in order to make the statements

therein, in light of the circumstances under which they were made, not

misleading, but in each case only to the extent that the untrue statement or

omission or alleged untrue statement or omission was made in reliance upon and

in conformity with written information pertaining to such Holder and furnished

to the Company by or on behalf of such Holder specifically for inclusion

therein; and, subject to the limitation set forth immediately preceding this

clause, shall reimburse, as incurred, the Company for any legal or other

expenses reasonably incurred by the Company or any such controlling person in

connection with investigating or defending any loss, claim, damage, liability

or action in respect thereof.  This

indemnity agreement will be in addition to any liability which such Holder may

otherwise have to the Company or any of its controlling persons.

 

(c) Promptly after

receipt by an indemnified party under this Section 5 of notice of the

commencement of any action or proceeding (including a governmental

investigation), such indemnified party will, if a claim in respect thereof is

to be made against the indemnifying party under this Section 5, notify the indemnifying

party of the commencement thereof; but the omission so to notify the

indemnifying party will not, in any event, relieve the indemnifying party from

any obligations to any indemnified party other than the indemnification

obligation provided in paragraph (a) or (b) above to the extent not materially

prejudiced as a result thereof.  In case

any such action is brought against any indemnified party, and it notifies the

indemnifying party of the commencement thereof, the indemnifying party will be

entitled to participate therein and, to the extent that it may wish, jointly

with any other indemnifying party similarly notified, to assume the defense

thereof, with counsel reasonably satisfactory to such indemnified party (who

shall not, except with the consent of the indemnified party, be counsel to the

indemnifying party), and after notice from the indemnifying party to such

indemnified party of its election so to assume the defense thereof the

indemnifying party will not be liable to such indemnified party under this

Section 5 for any legal or other expenses, other than reasonable costs of

investigation, subsequently incurred by such indemnified party in connection

with the defense thereof.  No

indemnifying party shall, without the prior written consent of the indemnified

party, effect any settlement of any pending or threatened action in respect of

which any indemnified party is or could have been a party and indemnity could

have been sought hereunder by such indemnified party unless such settlement (i)

includes an unconditional release of such indemnified party from all liability

on any claims that are the subject matter of such action, and (ii) does not

include a statement as to or an admission of fault, culpability or a failure to

act by or on behalf of any indemnified party.

 

(d) If the

indemnification provided for in this Section 5 is unavailable or insufficient

to hold harmless an indemnified party under subsections (a) or (b) above, then

each indemnifying party shall contribute to the amount paid or payable by such

indemnified party as a result of the losses, claims, damages or liabilities (or

actions in respect thereof) referred to in subsection (a) or (b) above in such

proportion as is appropriate to reflect the relative fault of the indemnifying

party or parties on the one hand and the indemnified party on the other in

connection with the statements or omissions that resulted in such losses,

claims, damages or liabilities (or actions in respect thereof) as well as any

other relevant equitable considerations. 

The relative fault of the parties shall be determined by reference to,

among other things, whether the untrue or alleged untrue statement of a

material fact or the omission or alleged omission to state a material fact

relates to information supplied by the Company on the one hand or such Holder

or such other indemnified party, as the case may be, on the other, and the

parties’ relative intent, knowledge, access to information and opportunity to

correct or prevent such statement or omission. 

The amount paid by an indemnified party as a result of the losses,

claims, damages or liabilities referred to in the first sentence of this

subsection (d) shall be deemed to include any legal or other expenses

reasonably incurred by such indemnified party in connection with investigating

or defending any action or claim which is the subject of this subsection

(d).  Notwithstanding any other

provision of this Section 5(d), the Holders of the Securities

 

11

 

shall not be required to

contribute any amount in excess of the amount by which the net proceeds

received by such Holders from the sale of the Securities pursuant to a

Registration Statement exceeds the amount of damages which such Holders have

otherwise been required to pay by reason of such untrue or alleged untrue

statement or omission or alleged omission. 

No person guilty of fraudulent misrepresentation (within the meaning of

Section 11(f) of the Securities Act) shall be entitled to contribution from any

person who was not guilty of such fraudulent misrepresentation.  For purposes of this paragraph (d), each

person, if any, who controls such indemnified party within the meaning of the

Securities Act or the Exchange Act shall have the same rights to contribution

as such indemnified party and each person, if any, who controls the Company

within the meaning of the Securities Act or the Exchange Act shall have the

same rights to contribution as the Company.

 

(e) The agreements

contained in this Section 5 shall survive the sale of the Securities pursuant

to a Registration Statement and shall remain in full force and effect,

regardless of any termination or cancellation of this Agreement or any

investigation made by or on behalf of any indemnified party.

 

6. Additional

Interest Under Certain Circumstances.

 

(a) Additional

interest (the “Additional Interest”) with respect to the Securities shall be

assessed as follows if any of the following events occur (each such event in

clauses (i) through (iv) below being herein called a “Registration Default”):

 

(i) any

Registration Statement required by this Agreement is not filed with the

Commission on or prior to the applicable Filing Deadline;

 

(ii) any

Registration Statement required by this Agreement is not declared effective by the

Commission on or prior to the applicable Effectiveness Deadline;

 

(iii) the

Registered Exchange Offer has not been consummated on or prior to the

Consummation Deadline; or

 

(iv) any

Registration Statement required by this Agreement has been declared effective

by the Commission but (A) such Registration Statement thereafter ceases to be

effective or (B) such Registration Statement or the related prospectus ceases

to be usable in connection with resales of Transfer Restricted Securities

during the periods specified herein because either (1) any event occurs as a

result of which the related prospectus forming part of such Registration

Statement would include any untrue statement of a material fact or omit to

state any material fact necessary to make the statements therein in the light

of the circumstances under which they were made not misleading, or (2) it shall

be necessary to amend such Registration Statement or supplement the related

prospectus, to comply with the Securities Act or the Exchange Act or the

respective rules thereunder.

 

Each of the

foregoing will constitute a Registration Default whatever the reason for any

such event and whether it is voluntary or involuntary or is beyond the control

of the Company or pursuant to operation of law or as a result of any action or

inaction by the Commission .

 

Additional

Interest shall accrue on the Securities over and above the interest set forth

in the title of the Securities from and including the date on which any such

Registration Default shall occur to but excluding the date on which all such

Registration Defaults have been cured, at a rate of 0.25% per annum (the “Additional

Interest Rate”) for the first 90-day period immediately following

the occurrence of such Registration Default. 

The Additional Interest Rate shall increase by an additional 0.25% per

annum with respect to each subsequent 90-day period until all Registration

Defaults have been cured, up to a maximum Additional Interest Rate of 1.0% per

annum.

 

(b) A Registration

Default referred to in Section 6(a)(iv) hereof shall be deemed not to have

occurred and be continuing in relation to a Shelf Registration Statement or the

related prospectus if (i) such

 

12

 

Registration Default has

occurred solely as a result of (x) the filing of a post-effective amendment to

such Shelf Registration Statement to incorporate annual audited financial

information with respect to the Company where such post-effective amendment is

not yet effective and needs to be declared effective to permit Holders to use

the related prospectus or (y) other material events, with respect to the

Company that would need to be described in such Shelf Registration Statement or

the related prospectus and (ii) in the case of clause (y), the Company is

proceeding promptly and in good faith to amend or supplement such Shelf

Registration Statement and related prospectus to describe such events; provided,

however, that in any case if such Registration Default occurs for a

continuous period in excess of 60 days, Additional Interest shall be payable in

accordance with the above paragraph from the day such Registration Default

occurs until such Registration Default is cured.

 

(c) Any amounts of

Additional Interest due pursuant to Section 6(a) will be payable in cash on the

regular interest payment dates with respect to the Securities.  The amount of Additional Interest will be

determined by multiplying the applicable Additional Interest Rate by the

principal amount of the Securities and further multiplied by a fraction, the

numerator of which is the number of days such Additional Interest Rate was

applicable during such period (determined on the basis of a 360-day year

comprised of twelve 30-day months), and the denominator of which is 360.

 

(d) “Transfer

Restricted Securities” means each Security until (i) the date on

which such Security has been exchanged by a person other than a broker-dealer

for a freely transferable Exchange Security in the Registered Exchange Offer,

(ii) following the exchange by a broker-dealer in the Registered Exchange Offer

of an Initial Security for an Exchange Note, the date on which such Exchange

Note is sold to a purchaser who receives from such broker-dealer on or prior to

the date of such sale a copy of the prospectus contained in the Exchange Offer

Registration Statement, (iii) the date on which such Security has been

effectively registered under the Securities Act and disposed of in accordance

with the Shelf Registration Statement or (iv) the date on which such Security is

distributed to the public pursuant to Rule 144 under the Securities Act or is

saleable pursuant to Rule 144(k) under the Securities Act.

 

7. Rules

144 and 144A.  The Company

shall use its commercial reasonable efforts to file the reports required to be filed

by it under the Securities Act and the Exchange Act in a timely manner and, if

at any time the Company is not required to file such reports, it will, upon the

request of any Holder of Securities, make publicly available other information

so long as necessary to permit sales of their securities pursuant to Rules 144

and 144A.  The Company covenants that it

will take such further action as any Holder of Securities may reasonably

request, all to the extent required from time to time to enable such Holder to

sell Securities without registration under the Securities Act within the

limitation of the exemptions provided by Rules 144 and 144A (including the

requirements of Rule 144A(d)(4)).  The

Company will provide a copy of this Agreement to prospective purchasers of

Initial Securities identified to the Company by the Initial Purchasers upon

request.  Upon the request of any Holder

of Initial Securities, the Company shall deliver to such Holder a written

statement as to whether it has complied with such requirements.  Notwithstanding the foregoing, nothing in

this Section 7 shall be deemed to require the Company to register any of its

securities pursuant to the Exchange Act.

 

8. Underwritten

Registrations.  If any of the

Transfer Restricted Securities covered by any Shelf Registration are to be sold

in an underwritten offering, the investment banker or investment bankers and

manager or managers that will administer the offering (“Managing Underwriters”) will

be selected by the Holders of a majority in aggregate principal amount of such

Transfer Restricted Securities to be included in such offering and approved by

the Company.

 

No person may participate in any underwritten

registration hereunder unless such person (i) agrees to sell such person’s

Transfer Restricted Securities on the basis reasonably provided in any

underwriting arrangements approved by the persons entitled hereunder to approve

such arrangements and (ii) completes and executes all questionnaires, powers of

attorney, indemnities, underwriting agreements and other documents reasonably

required under the terms of such underwriting arrangements.

 

13

 

9. Miscellaneous.

 

(a) Remedies.  The Company acknowledges and agrees that any

failure by the Company to comply with its obligations under Section 1 and 2

hereof may result in material irreparable injury to the Initial Purchasers or

the Holders for which there is no adequate remedy at law, that it will not be

possible to measure damages for such injuries precisely and that, in the event

of any such failure, the Initial Purchasers or any Holder may obtain such

relief as may be required to specifically enforce the Company’s obligations

under Sections 1 and 2 hereof.  The Company

further agrees to waive the defense in any action for specific performance that

a remedy at law would be adequate.

 

(b) No

Inconsistent Agreements.  The

Company will not on or after the date of this Agreement enter into any

agreement with respect to its securities that is inconsistent with the rights

granted to the Holders in this Agreement or otherwise conflicts with the

provisions hereof.  The rights granted

to the Holders hereunder do not in any way conflict with and are not

inconsistent with the rights granted to the holders of the Company’s securities

under any agreement in effect on the date hereof.

 

(c) Amendments

and Waivers.  The provisions

of this Agreement may not be amended, modified or supplemented, and waivers or

consents to departures from the provisions hereof may not be given, except by

the Company and the written consent of the Holders of a majority in principal

amount of the Securities affected by such amendment, modification, supplement,

waiver or consents.  Without the consent

of the Holder of each Security, however, no modification may change the

provisions relating to the payment of Additional Interest.

 

(d) Notices.  All notices and other communications

provided for or permitted hereunder shall be made in writing by hand delivery,

first-class mail, facsimile transmission, or air courier which guarantees

overnight delivery:

 

(1) if to a Holder

of the Securities, at the most current address given by such Holder to the

Company.

 

(2) if to the

Initial Purchasers;

 

c/o Credit Suisse

First Boston Corporation

Eleven Madison Avenue

New York, NY

10010-3629

Fax No.: (212)

325-8278

Attention:

Transactions Advisory Group

 

with a copy to:

 

Dewey Ballantine

LLP

1301 Avenue of the

Americas

New York, NY 10019

Fax No.: (212)

259-6333

Attention: Morton

A. Pierce

 

(3) if to the

Company, at its address as follows:

 

NorthWestern

Corporation

125 S. Dakota

Avenue

Sioux Falls, South

Dakota 57104

Attention: Eric R.

Jacobsen

 

with a copy to:

 

Paul, Hastings,

Janofsky & Walker LLP

55 Second Street,

24th Floor

 

14

 

San Francisco, CA

94105-3441

Fax No.: (415)

856-7100

Attention: Thomas

R. Pollock

 

All such notices and communications shall be deemed to

have been duly given: at the time delivered by hand, if personally delivered;

three business days after being deposited in the mail, postage prepaid, if

mailed; when receipt is acknowledged by recipient’s facsimile machine operator,

if sent by facsimile transmission; and on the day delivered, if sent by

overnight air courier guaranteeing next day delivery.

 

(e) Third Party

Beneficiaries.  The Holders

shall be third party beneficiaries to the agreements made hereunder between the

Company, on the one hand, and the Initial Purchasers, on the other hand, and

shall have the right to enforce such agreements directly to the extent they may

deem such enforcement necessary or advisable to protect their rights or the

rights of Holders hereunder.

 

(f) Successors and Assigns.  This Agreement shall be binding upon the

Company and its successors and assigns.

 

(g) Counterparts.  This Agreement may be executed in any number

of counterparts and by the parties hereto in separate counterparts, each of

which when so executed shall be deemed to be an original and all of which taken

together shall constitute one and the same agreement.

 

(h) Headings. 

The headings in this Agreement are for convenience of reference only and

shall not limit or otherwise affect the meaning hereof.

 

(i) Governing

Law.  THIS AGREEMENT SHALL BE

GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW

YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.

 

(j) Severability.  If any one or more of the provisions contained herein, or the

application thereof in any circumstance, is held invalid, illegal or

unenforceable, the validity, legality and enforceability of any such provision

in every other respect and of the remaining provisions contained herein shall

not be affected or impaired thereby.

 

(k) Securities Held by the Company.  Whenever the consent or approval of Holders

of a specified percentage of principal amount of Securities is required

hereunder, Securities held by the Company or its affiliates (other than

subsequent Holders of Securities if such subsequent Holders are deemed to be

affiliates solely by reason of their holdings of such Securities) shall not be

counted in determining whether such consent or approval was given by the

Holders of such required percentage.

 

15

 

If the foregoing is in accordance with your

understanding of our agreement, please sign and return to the Company a

counterpart hereof, whereupon this instrument, along with all counterparts,

will become a binding agreement between the Initial Purchasers and the Company

in accordance with its terms.

 

	

   

  	

  Very truly yours,

  
	

   

  	

   

  
	

   

  	

  NORTHWESTERN

  CORPORATION

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   /s/ Kipp D. Orme

  	

   

  
	

   

  	

  Name:   Kipp D. Orme

  
	

   

  	

  Title:     Vice President & Chief Financial

  Officer

  
	

  The foregoing

  Registration

  Rights Agreement is hereby confirmed

  and accepted as of the date first

  above written.

  	

   

  
	

   

  	

   

  
	

  CREDIT SUISSE FIRST

  BOSTON CORPORATION

  	

   

  
	

  BARCLAYS CAPITAL INC.

  	

   

  
	

  MORGAN STANLEY &

  CO. INCORPORATED

  	

   

  
	

   

  	

   

  
	

   

  	

  Acting on behalf of

  themselves

  and as the Representatives of the

  several Purchasers

  
	

   

  	

   

  
	

   

  	

  By: CREDIT SUISSE FIRST

  BOSTON CORPORATION

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Jamie Welch

  	

   

  
	

   

  	

  Name:   Jamie

  Welch

  	

   

  
	

   

  	

  Title:    

  Managing Director

  	

   

  
							

 

16

 

ANNEX A

 

Each broker-dealer that receives Exchange Securities

for its own account pursuant to the Exchange Offer must acknowledge that it

will deliver a prospectus in connection with any resale of such Exchange

Securities.  The Letter of Transmittal

states that by so acknowledging and by delivering a prospectus, a broker-dealer

will not be deemed to admit that it is an “underwriter” within the meaning of

the Securities Act.  This Prospectus, as

it may be amended or supplemented from time to time, may be used by a

broker-dealer in connection with resales of Exchange Securities received in

exchange for Initial Securities where such Initial Securities were acquired by

such broker-dealer as a result of market-making activities or other trading

activities.  The Company has agreed

that, for a period of 180 days after the Expiration Date (as defined herein),

it will make this Prospectus available to any broker-dealer for use in

connection with any such resale.  See

“Plan of Distribution.”

 

17

 

ANNEX B

 

Each broker-dealer that receives Exchange Securities

for its own account in exchange for Initial Securities, where such Initial

Securities were acquired by such broker-dealer as a result of market-making

activities or other trading activities, must acknowledge that it will deliver a

prospectus in connection with any resale of such Exchange Securities.  See “Plan of Distribution.”

 

18

 

ANNEX C

 

PLAN OF DISTRIBUTION

 

Each broker-dealer that receives Exchange Securities

for its own account pursuant to the Exchange Offer must acknowledge that it

will deliver a prospectus in connection with any resale of such Exchange

Securities.  This Prospectus, as it may

be amended or supplemented from time to time, may be used by a broker-dealer in

connection with resales of Exchange Securities received in exchange for Initial

Securities where such Initial Securities were acquired as a result of

market-making activities or other trading activities.  The Company has agreed that, for a period of 180 days after the

Expiration Date, it will make this prospectus, as amended or supplemented,

available to any broker-dealer for use in connection with any such resale.  In addition, until

                ,

200 , all dealers effecting transactions in the Exchange Securities may be

required to deliver a prospectus. (1)

(1)  In addition,

the legend required by Item 502(b) of Regulation S-K will appear on the outside

back cover page of the Exchange Offer prospectus.

 

The Company will not receive any proceeds from any

sale of Exchange Securities by broker-dealers. 

Exchange Securities received by broker-dealers for their own account

pursuant to the Exchange Offer may be sold from time to time in one or more

transactions in the over-the-counter market, in negotiated transactions,

through the writing of options on the Exchange Securities or a combination of

such methods of resale, at market prices prevailing at the time of resale, at

prices related to such prevailing market prices or negotiated prices.  Any such resale may be made directly to

purchasers or to or through brokers or dealers who may receive compensation in

the form of commissions or concessions from any such broker-dealer or the

purchasers of any such Exchange Securities. 

Any broker-dealer that resells Exchange Securities that were received by

it for its own account pursuant to the Exchange Offer and any broker or dealer

that participates in a distribution of such Exchange Securities may be deemed

to be an “underwriter” within the meaning of the Securities Act and any profit

on any such resale of Exchange Securities and any commission or concessions

received by any such persons may be deemed to be underwriting compensation

under the Securities Act.  The Letter of

Transmittal states that, by acknowledging that it will deliver and by delivering

a prospectus, a broker-dealer will not be deemed to admit that it is an

“underwriter” within the meaning of the Securities Act.

 

For a period of 180 days after the Expiration Date the

Company will promptly send additional copies of this Prospectus and any

amendment or supplement to this Prospectus to any broker-dealer that requests

such documents in the Letter of Transmittal. 

The Company has agreed to pay all expenses incident to the Exchange

Offer (including the expenses of one counsel for the Holders of the Securities)

other than commissions or concessions of any brokers or dealers and will

indemnify the Holders of the Securities (including any broker-dealers) against

certain liabilities, including liabilities under the Securities Act.

 

19

 

ANNEX D

 

o

CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES

OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

 

	

  Name:

  	

   

  	

   

  
	

  Address:

  	

   

  	

   

  

 

If the undersigned is not a broker-dealer, the undersigned represents that

it is not engaged in, and does not intend to engage in, a distribution of

Exchange Securities.  If the undersigned

is a broker-dealer that will receive Exchange Securities for its own account in

exchange for Initial Securities that were acquired as a result of market-making

activities or other trading activities, it acknowledges that it will deliver a

prospectus in connection with any resale of such Exchange Securities; however,

by so acknowledging and by delivering a prospectus, the undersigned will not be

deemed to admit that it is an “underwriter” within the meaning of the

Securities Act.

 

20FIRST SUPPLEMENTAL INDENTURE

Exhibit 4(f)(3)

 

SECOND

SUPPLEMENTAL INDENTURE

 

This SECOND SUPPLEMENTAL INDENTURE, dated as of March

13, 2002 (this “Supplemental Indenture”),

between NorthWestern Corporation, a Delaware corporation (the “Company”), and JPMorgan Chase Bank, as

successor to The Chase Manhattan Bank, as trustee (the “Trustee”), under the Indenture, dated as of

November 1, 1998, between the Company and the Trustee, as previously

supplemented by a first supplemental indenture, dated as of November 1, 1998,

between the Company and the Trustee (collectively, the “Indenture”).

 

WHEREAS, the Company executed and delivered the

Indenture to the Trustee to provide for the issuance from time to time of the

Company’s unsecured debentures, notes or other evidences of indebtedness to be issued

in one or more series as might be determined by the Company under the

Indenture, in an unlimited aggregate principal amount which may be

authenticated and delivered as provided in the Indenture;

 

WHEREAS, pursuant to the terms of the Indenture, the Company

desires to provide for the establishment and issuance of two new series of

notes to be known as the 7-7/8% Notes due 2007 and the 8-3/4% Notes due 2012

(collectively, the “Initial Notes”)

and to provide for the issuance of one or more additional series of Exchange

Notes (as defined herein) or Private Exchange Notes (as defined herein) for

issue only in a Registered Exchange Offer (as defined herein) or Private

Exchange (as defined herein), respectively, pursuant to a Registration Rights

Agreement (as defined herein) for a like principal amount of Initial Notes, the

form and substance of such Initial Notes and Exchange Notes or Private Exchange

Notes and the terms, provisions and conditions thereof to be as set forth in

the Indenture and this Supplemental Indenture;

 

WHEREAS, the Company has requested that the Trustee

execute and deliver this Supplemental Indenture, all requirements necessary to

make this Supplemental Indenture a valid instrument in accordance with its

terms (and to make the Notes (as defined herein), when executed by the Company

and authenticated and delivered by the Trustee, the valid obligations of the

Company) have been performed by the Company, and the execution and delivery of

this Supplemental Indenture has been duly authorized by the Company in all

respects;

 

NOW, THEREFORE, in consideration of the purchase and

acceptance of the Initial Notes and Exchange Notes or Private Exchange Notes by

the Holders thereof, and for the purpose of setting forth, as provided in the

Indenture, the form and substance of the Initial Notes and Exchange Notes or

Private Exchange Notes and the terms, provisions and conditions thereof, the

Company covenants and agrees with the Trustee as follows:

 

ARTICLE I

DEFINITIONS

 

1.1           Definition of

Terms.

 

Unless the context otherwise requires:

 

 

(a)           a

term not defined herein that is defined in the Indenture has the same meaning

when used in this Supplemental Indenture;

 

(b)           a

term defined anywhere in this Supplemental Indenture has the same meaning

throughout;

 

(c)           the

singular includes the plural and vice versa;

 

(d)           a

reference to a Section or Article is to a Section or Article of this

Supplemental Indenture, unless otherwise noted;

 

(e)           headings

are for convenience of reference only and do not affect interpretation;

 

(f)            the

following terms have the meanings given to them in this Section 1.1(f) for

purposes of this Supplemental Indenture only:

 

“Additional Notes”

means additional 7-7/8% Notes due 2007 and additional 8-3/4% Notes due 2012

issued from time to time after the Issue Date under the terms of this

Supplemental Indenture (other than pursuant to Section 304, 305, 306 and 1107

of the Indenture and other than Exchange Notes or Private Exchange Notes issued

pursuant to an exchange offer for other Notes outstanding under this

Supplemental Indenture), which shall be the same series as the Initial Notes.

 

“Adjusted Treasury

Rate” means, with respect to any Redemption Date, (i) the yield,

under the heading which represents the average for the immediately preceding

week, appearing in the most recently published statistical release designated

“H.15. (519)” or any successor publication which is published weekly by the

Board of Governors of the Federal Reserve System and which establishes yields

on actively traded United States Treasury securities adjusted to constant

maturity under the caption “Treasury Constant Maturities,” for the maturity

corresponding to the Comparable Treasury Issue (or if no maturity is within

three months before or after the remaining term of the Notes being redeemed,

yields for the two published maturities most closely corresponding to the

Comparable Treasury Issue shall be determined and the Adjusted Treasury Rate

shall be interpolated or extrapolated from such yields on a straight line basis,

rounding to the nearest month) or (ii) if such release (or any successor

release) is not published during the week preceding the calculation date or

does not contain such yields, the rate per year equal to the semi-annual

equivalent yield to maturity of the Comparable Treasury Issue (expressed as a

percentage of its principal amount) equal to the Comparable Treasury Price for

such Redemption Date, in each case calculated on the third Business Day

preceding the Redemption Date, plus 0.40% for the Notes.

 

“Comparable Treasury

Issue” means, with respect to any Redemption Date, the United States

Treasury security selected by the Quotation Agent as having a maturity

comparable to the remaining term from the Redemption Date to the maturity date

of the Notes being redeemed 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 term of the

Notes.

 

2

 

“Comparable Treasury

Price” means, with respect to any Redemption Date, if clause (ii) of

the definition of Adjusted Treasury Rate is applicable, the average of three,

or such lesser number as is obtained by the Trustee, Reference Treasury Dealer

Quotations for such redemption date.

 

“Consolidated Net

Tangible Assets” shall be determined in accordance with generally

accepted accounting principles existing on the date hereof and as of a date not

more than 90 days prior to the happening of the event for which such

determination is being made, such date to be selected by the Company.

 

“Depository”

means The Depository Trust Company, its nominees and their respective

successors.

 

“Exchange Notes”

means the 7-7/8% Notes due 2007 and the 8-3/4% Notes due 2012 issued pursuant

to this Supplemental Indenture in connection with a Registered Exchange Offer

pursuant to the Registration Rights Agreement or otherwise issued in exchange

for Additional Notes.

 

 “Initial Notes” means up to $250,000,000 aggregate

principal amount of 7-7/8% Notes due 2007, and up to $470,000,000 aggregate

principal amount of 8-3/4% Notes due 2012, issued on the Issue Date.

 

“Initial Purchasers”

means, with respect to the Initial Notes issued on the Issue Date, the entities

identified as initial purchasers on Schedule A to the Purchase Agreement.

 

“Issue Date”

means March 13, 2002.

 

“Make-Whole Amount”

means the sum, as determined by the Quotation Agent, of the present values of

the principal amount of the Notes to be redeemed, together with scheduled

payments of interest (exclusive of interest to the Redemption Date) from the

Redemption Date to the maturity date of the Notes being redeemed, in each case

discounted to the Redemption Date on a semi-annual basis, assuming a 360-day

year consisting of twelve 30-day months, at the Adjusted Treasury Rate, plus

accrued interest on the principal amount of the Notes being redeemed to the

Redemption Date.

 

 “Notes” means the Initial Notes, the

Exchange Notes, the Private Exchange Notes and any Additional Notes so

designated by the Company.

 

“Private Exchange”

means the offer by the Company, pursuant to the Registration Rights Agreement,

to the Initial Purchasers to issue and deliver to each Initial Purchaser, in

exchange for the Initial Notes held by such Initial Purchaser as part of its

initial distribution, a like aggregate principal amount of Private Exchange

Notes, or any similar offer with respect to Additional Notes.

 

“Private Exchange

Notes” means the 7-7/8% Notes due 2007 and the 8-3/4% Notes due

2012, issued pursuant to this Supplemental Indenture in connection with 

 

3

 

a Private Exchange pursuant to the Registration Rights Agreement or

otherwise issued in exchange for Additional Notes.

 

“Purchase Agreement”

means, with respect to the Initial Notes issued on the Issue Date, the Purchase

Agreement, dated as of March 8, 2002, among the Company and the Initial

Purchasers.

 

“QIB”

means a “qualified institutional buyer” as defined in Rule 144A.

 

“Quotation Agent”

means a primary U.S. Government securities dealer selected by the Trustee after

consultation with the Company.

 

“Reference Treasury

Dealer” means a primary U.S. Government securities dealer selected

by the Company.

 

“Reference Treasury

Dealer Quotations” means, with respect to each Reference Treasury

Dealer and any Redemption Date, the average, as determined by the Trustee, of

the bid and asked prices for the Comparable Treasury Issue, expressed in each

case as a percentage of its principal amount, quoted in writing to the Trustee

by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the

third Business Day preceding such Redemption Date.

 

“Registered Exchange

Offer” means the offer by the Company, pursuant to the Registration

Rights Agreement, to certain Holders of Initial Notes, to issue and deliver to

such Holders, in exchange for the Initial Notes, a like aggregate principal

amount of Exchange Notes registered under the Securities Act, or any similar

offer with respect to Additional Notes.

 

“Registration Rights

Agreement” means with respect to the Initial Notes issued on the

Issue Date, the Registration Rights Agreement, dated as of March 8, 2002, among

the Company and the Initial Purchasers for the benefit of the Initial

Purchasers and the Holders of the Notes.

 

“Securities Act”

means the Securities Act of 1933, as amended.

 

“Securities

Custodian” means the custodian with respect to a Global Note (as

appointed by the Depository), or any successor Person thereto, and shall

initially be the Trustee.

 

“Shelf Registration

Statement” means the registration statement, if any, filed by the

Company in connection with the offer and sale of Initial Notes or Private

Exchange Notes pursuant to the Registration Rights Agreement.

 

“Transfer Restricted

Notes” means Notes that bear or are required to bear the legend set

forth in Section 2.6(b) hereof.

 

“Utility Assets”

means any and all property of the Company and/or any of its subsidiaries, real,

personal and mixed and wherever situated, in any case used or to be 

 

4

 

used, or useful, in or in connection with the generation, production,

transmission or distribution of electric energy or gas in any form and for any

purpose (whether or not such use is the sole use of such property), including,

without limitation, all property subject to the mortgages (whether or not such

property is excepted from such mortgages) of and referenced in (i) the

Indenture, dated August 1, 1940, from the Company (f/k/a NorthWestern Public

Service Company) to JPMorgan Chase Bank (as successor to The Chase Manhattan

Bank (National Association), successor by merger to The Chase National Bank of

the City of New York), as trustee, and C.J. Heinzelmann, successor to Carl E.

Buckley, as individual trustee, as the same may be amended or supplemented (ii)

the General Mortgage Indenture and Deed of Trust, dated as of August 1, 1993,

from the Company (f/k/a NorthWestern Public Service Company) to JPMorgan Chase

Bank (as successor to The Chase Manhattan Bank (National Association)), as the

same may be amended or supplemented and (iii) the Mortgage and Deed of Trust,

dated as of October 1, 1945, from The Montana Power, L.L.C. (as successor to

The Montana Power Company) to Guaranty Trust Company of New York and Arthur E.

Burke, trustees, as the same may be amended or supplemented.

 

1.2           Other Definitions

 

	

  Term

  	

   

  	

  Defined in

  Section

  	

   

  
	

  “Agent Members”

  	

   

  	

  2.4(b)

  	

   

  
	

  “Global Note”

  	

   

  	

  2.4(a)

  	

   

  
	

  “Regulation S”

  	

   

  	

  2.4(a)

  	

   

  
	

  “Restricted Global Note”

  	

   

  	

  2.4(a)

  	

   

  
	

  “Rule 144A”

  	

   

  	

  2.4(a)

  	

   

  

 

ARTICLE II

TERMS AND CONDITIONS OF THE NOTES

 

2.1           Designation and

Principal Amount.

 

There is hereby authorized under this Indenture two

series of Initial Notes designated (i) “7-7/8% Notes due 2007,” limited in

aggregate principal amount on the Issue Date to $250,000,000 and (ii) the

“8-3/4% Notes due 2012,” limited in aggregate principal amount on the Issue

Date to $470,000,000.  In addition,

there is hereby authorized under this Indenture such additional series of Exchange

Notes or Private Exchange Notes as may be issued only in a Registered Exchange

Offer or Private Exchange, respectively, pursuant to the Registration Rights

Agreement, for a like principal amount of Initial Notes, or as may otherwise be

issued for Additional Notes, as applicable. 

The aggregate principal amount of each series may be increased as

provided in Section 2.3

 

2.2           Maturity.

 

The Stated Maturity for the Initial Notes will be as

follow:

 

5

 

	

  Notes

  	

   

  	

  Maturity

  	

   

  
	

  7-7/8% Notes due 2007

  	

   

  	

  March 15, 2007

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  8-3/4% Notes due 2012

  	

   

  	

  March 15, 2012

  	

   

  

 

The Stated Maturity for the Exchange Notes or Private

Exchange Notes will be as follows:

 

	

  Notes

  	

   

  	

  Maturity

  	

   

  
	

  7-7/8% Notes due 2007

  	

   

  	

  March 15, 2007

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  8-3/4% Notes due 2012

  	

   

  	

  March 15, 2012

  	

   

  

 

2.3           Issuance of

Additional Notes.

 

The Company shall be entitled to issue Additional

Notes under this Supplemental Indenture which shall have identical terms as the

Initial Notes (including, without limitation, the same CUSIP number), other

than with respect to the date of issuance and issue price, and which shall be

the same series as the Notes of such series having the same Stated Maturity as

such Additional Notes.  The Initial

Notes of any given series issued on the Issue Date and all Exchange Notes or

Private Exchange Notes with the same Stated Maturity as such series of Initial

Notes issued in exchange therefor, together with any Additional Notes of the

same series as such Initial Notes, shall be treated as a single class for all

purposes under the Indenture.

 

With respect to any Additional Notes, the Company

shall set forth in an Officers’ Certificate, a copy of each of which shall be

delivered to the Trustee along with a Company Order for authentication and delivery

of such Additional Notes, the following information:

 

(1)           the aggregate principal amount of

such Additional Notes to be authenticated and delivered pursuant to this

Supplemental Indenture; and

 

(2)           the issue price, the issue date and

the CUSIP number, ISIN number and Common Code number, if any, of such

Additional Notes; provided, however, that no Additional Notes may be issued at

a price that would cause such Additional Notes to have “original issue

discount” within the meaning of Section 1273 of the Internal Revenue Code of

1986, as amended, and no Additional Notes may be issued if an Event of Default

has occurred and is continuing with respect to any series of Notes.

 

2.4           (a)  Form and Dating.

 

Initial Notes offered and sold to a QIB in reliance on

Rule 144A under the Securities Act (“Rule

144A”) or in reliance on Regulation S under the Securities Act (“Regulation S”), in each case as provided in

the Purchase Agreement or any similar 

 

6

 

agreement with respect to Additional Notes shall be issued initially in

the form of one or more permanent global Notes, substantially in the form as

set forth in Exhibit 1 hereto, in definitive, fully registered form without

interest coupons with the global securities legend and restricted securities

legend set forth in Exhibit 1 hereto, which shall be deposited on behalf of the

purchasers of the Initial Notes represented thereby with the Trustee, at its

Corporate Trust Office, as Securities Custodian (or with such other Securities

Custodian as the Depository may direct), and registered in the name of the

Depository or a nominee of the Depository, duly executed by the Company and

authenticated by the Trustee as hereinafter provided.  Initial Notes offered and sold to an institutional “accredited

investor” as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities

Act shall receive physical delivery of certificated Notes.  Exchange Notes shall be issued in global

form substantially in the form as set forth in Exhibit 2 attached hereto (with

the global securities legend set forth in Exhibit 1 hereto).  Private Exchange Notes shall be issued in

global form substantially in the form as set forth in Exhibit 2 attached hereto

(with the global securities legend and the restricted securities legend set

forth in Exhibit 1 hereto).  Initial

Notes offered and sold to a QIB in reliance on Rule 144A or in reliance on

Regulation S are sometimes referred to in this Supplemental Indenture as

“Restricted Global Notes.”  Exchange Notes

issued in global form and Restricted Global Notes are sometimes referred to in

this Supplemental Indenture as “Global Notes.” 

The aggregate principal amount of the Global Notes may from time to time

be increased or decreased by adjustments made on the records of the Trustee and

the Depository or its nominee as hereinafter provided.

 

(b)           Book-Entry

Provisions.  This Section 2.4(b)

shall apply only to a Global Note deposited with or on behalf of the

Depository.

 

The Company shall execute and the Trustee shall, in

accordance with this Section 2.4(b), authenticate and deliver initially one or

more Global Notes that (a) shall be registered in the name of the Depository or

the nominee of the Depository and (b) shall be delivered by the Trustee to the

Depository or pursuant to the Depository’s instructions or held by the Trustee

as Securities Custodian.

 

Members of, or participants in, the Depository (“Agent Members”) shall have no rights under

this Supplemental Indenture with respect to any Global Note held on their

behalf by the Depository or by the Trustee as the Securities Custodian or under

such Global Note, and the Company, the Trustee and any agent of the Company or

the Trustee shall be entitled to treat the Depository as the absolute owner of

such Global Note for all purposes whatsoever. 

Notwithstanding the foregoing, nothing herein shall prevent the Company,

the Trustee or any agent of the Company or the Trustee from giving effect to

any written certification, proxy or other authorization furnished by the

Depository or impair, as between the Depository and its Agent Members, the

operation of customary practices of such Depository governing the exercise of

the rights of a holder of a beneficial interest in any Global Note.

 

(c)           Certificated

Notes.  Except as provided in this

Section 2.4, Section 2.6 or Section 2.7, owners of beneficial interests in

Restricted Global Notes shall not be entitled to receive physical delivery of

certificated Notes.

 

7

 

2.5           Authentication.

 

The Trustee shall authenticate and deliver: (i) on the

Issue Date, an aggregate principal amount of up to $250,000,000 of 7-7/8% Notes

due 2007 and an aggregate principal amount of up to $470,000,000 of 8-3/4%

Notes due 2012 and (ii) from time to time upon a Company Order as provided in

Section 303 of the Indenture, Exchange Notes or Private Exchange Notes for

issue only in a Registered Exchange Offer or a Private Exchange, respectively,

pursuant to the Registration Rights Agreement, for a like principal amount of

Initial Notes of having the same Stated Maturity as such Exchange Notes or

Private Exchange Notes, as the case may be, and Additional Notes.

 

2.6           Transfer and

Exchange.

 

(a)           Transfer and Exchange of Global

Notes.   (i) The transfer and exchange

of Global Notes or beneficial interests therein shall be effected through the

Depository, in accordance with this Supplemental Indenture (including

applicable restrictions on transfer set forth herein, if any) and the

procedures of the Depository therefor. 

A transferor of a beneficial interest in a Global Note shall deliver to

the Security Registrar a written order given in accordance with the

Depository’s procedures containing information regarding the participant

account of the Depository to be credited with a beneficial interest in the

Global Note.  The Security Registrar

shall, in accordance with such written order, instruct the Depository to credit

to the account of the Person specified in such written order a beneficial

interest in the Global Note and to debit from the account of the Person making

the transfer the beneficial interest in the Global Note being transferred.

 

(ii)      Notwithstanding any other provision of

this Supplemental Indenture (other than the provisions set forth in Section 2.7),

a Global Note may not be transferred as a whole except by the Depository to a

nominee of the Depository or by a nominee of the Depository to the Depository

or another nominee of the Depository or by the Depository or any such nominee

to a successor Depository or a nominee of such successor Depository.

 

(iii)     In the event that a Restricted Global Note

is exchanged for Notes in certificated registered form pursuant to Section 2.7

prior to the registration of such Notes under the Securities Act, such Restricted

Global Note may be exchanged only in accordance with such procedures as are

substantially consistent with the provisions of this Section 2.6 (including the

certification requirements set forth on the reverse of the Initial Notes

intended to ensure that such transfers comply with Rule 144A or Regulation S,

as the case may be) and such other procedures as may from time to time be

adopted by the Company.

 

8

 

(b)           Legend.

 

(i)       Except as permitted by the following

paragraphs (ii), (iii) and (iv), each Note certificate evidencing a Transfer

Restricted Note shall bear a legend in substantially the following form:

 

THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED

IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES

ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS NOTE MAY NOT BE

OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR

AN APPLICABLE EXEMPTION THEREFROM.  EACH

PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE

RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT

PROVIDED BY RULE 144A THEREUNDER.

 

THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF

NORTHWESTERN THAT (A) THIS NOTE MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE

TRANSFERRED, ONLY (I) IN THE UNITED STATES TO A PERSON WHOM THE SELLER

REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A

UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE

144A, (II) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE

WITH RULE 904 UNDER THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION FROM

REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF

AVAILABLE) OR (IV) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE

SECURITIES ACT, IN EACH OF CASES (I) THROUGH (IV) IN ACCORDANCE WITH ANY

APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE

HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF

THIS NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.  IN CONNECTION WITH ANY TRANSFER, THE HOLDER

WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION

AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER

COMPLIES WITH THE FOREGOING RESTRICTIONS.

 

(ii)      Upon any sale or transfer of a Transfer

Restricted Note (including any Transfer Restricted Note represented by a

Restricted Global Note) pursuant to Rule 144, the Security Registrar shall

permit the transferee thereof to exchange 

 

9

 

such Transfer Restricted

Note for a certificated Note that does not bear the legend set forth above and

rescind any restriction on the transfer of such Transfer Restricted Note, if

the transferor thereof certifies in writing to the Security Registrar that such

sale or transfer was made in reliance on Rule 144 (such certification to be in

the form set forth on the reverse of the Note).

 

(iii)     After a transfer of any Initial Notes or

Private Exchange Notes pursuant to and during the period of the effectiveness

of a registration statement under the Securities Act with respect to such

Initial Notes or Private Exchange Notes, as the case may be, all requirements

pertaining to legends on such Initial Notes or such Private Exchange Notes with

respect to such Notes transferred will cease to apply and Initial Notes or

Private Exchange Notes in global form, in each case without restrictive

transfer legends, will be available to the transferee of the Holder of such

Initial Notes or Private Exchange Notes upon written directions to transfer

such Holder’s interest in the Global Note.

 

(iv)     Upon the consummation of a Registered

Exchange Offer with respect to the Initial Notes, Exchange Notes in global form

will be available to Holders that exchange such Initial Notes in such

Registered Exchange Offer.

 

(v)      Upon the consummation of a Private

Exchange with respect to the Initial Notes, all requirements pertaining to such

Initial Notes that Initial Notes issued to certain Holders be issued in global

form will still apply with respect to Holders of such Initial Notes that do not

exchange their Initial Notes, and Private Exchange Notes in global form with

the global securities legend and the Restricted Notes Legend set forth in

Exhibit 1 hereto will be available to Holders that exchange such Initial Notes

in such Private Exchange.

 

(c)           Cancellation

or Adjustment of Global Note.  At

such time as all beneficial interests in a Global Note have either been

exchanged for certificated Notes, redeemed, purchased or canceled, such Global

Note shall be returned to the Depository for cancellation or retained and

canceled by the Trustee.  At any time

prior to such cancellation, if any beneficial interest in a Global Note is

exchanged for certificated Notes, redeemed, purchased or canceled, the

principal amount of Notes represented by such Global Note shall be reduced and

an adjustment shall be made on the books and records of the Securities

Custodian with respect to such Global Note.

 

(d)           Obligations with Respect to

Transfers and Exchanges of Notes.

 

(i)       To permit registrations of transfers and

exchanges, the Company shall execute and the Trustee shall authenticate

certificated Notes and Global Notes at the Security Registrar’s request.

 

(ii)      No service charge shall be made for any

registration of transfer or exchange, but the Company may require payment of a

sum sufficient to cover any transfer tax, assessments or similar governmental

charge payable in connection therewith (other than any such transfer taxes,

assessments or similar governmental 

 

10

 

charge payable upon exchange or transfer pursuant to

Section 1107 of the Indenture).

 

(iii)     The Security Registrar shall not be

required to register the transfer of or exchange of any Note during a period of

15 Business Days immediately preceding the date notice is given of redemption,

all in accordance with Section 305 of the Indenture.

 

(iv)     Prior to the due presentation for

registration of transfer of any Note, the Company, the Trustee, the Paying

Agent or the Security Registrar may deem and treat the Person in whose name a

Note is registered as the absolute owner of such Note for the purpose of

receiving payment of principal of and interest on such Note and for all other

purposes whatsoever, whether or not such Note is overdue, and none of the

Company, the Trustee, the Paying Agent or the Security Registrar shall be

affected by notice to the contrary.

 

(v)      All Notes issued upon any transfer or

exchange pursuant to the terms of the Indenture shall evidence the same debt

and shall be entitled to the same benefits under the Indenture as the Notes

surrendered upon such transfer or exchange.

 

(e)           No Obligation of the Trustee.

 

(i)       The Trustee shall have no responsibility

or obligation to any beneficial owner of a Global Note, Agent Member or other

Person with respect to the accuracy of the records of the Depository or its

nominee or of any Agent Member, with respect to any ownership interest in the

Notes or with respect to the delivery to any Agent Member, beneficial owner or

other Person (other than the Depository) of any notice (including any notice of

redemption) or the payment of any amount, under or with respect to such

Notes.  All notices and communications

to be given to the Holders and all payments to be made to Holders under the

Notes shall be given or made only to or upon the order of the registered

Holders (which shall be the Depository or its nominee in the case of a Global

Note).  The rights of beneficial owners

in any Global Note shall be exercised only through the Depository subject to

the applicable rules and procedures of the Depository.  The Trustee may rely and shall be fully

protected in relying upon information furnished by the Depository with respect

to its Agent Members and any beneficial owners.

 

(ii)      The Trustee shall have no obligation or

duty to monitor, determine or inquire as to compliance with any restrictions on

transfer imposed under this Supplemental Indenture or under applicable law with

respect to any transfer of any interest in any Note (including any transfers

between or among Agent Members or beneficial owners in any Global Note) other

than to require delivery of such certificates and other documentation or

evidence as are expressly required by, and to do so if and when expressly

required by, the terms of the Indenture.

 

11

 

2.7           Certificated

Notes.

 

(a)           A

Restricted Global Note deposited with the Depository or with the Trustee as

Securities Custodian pursuant to Section 2.4 shall be transferred to the

beneficial owners thereof in the form of certificated Notes in an aggregate

principal amount equal to the principal amount of such Global Note, in exchange

for such Global Note, only if such transfer complies with this Section 2.7 and

the other conditions set forth in Section 305 of the Indenture.

 

(b)           Any

Restricted Global Note that is transferable to the beneficial owners thereof

pursuant to this Section shall be surrendered by the Depository to the Trustee

at its Corporate Trust Office to be so transferred, in whole or from time to

time in part, without charge, and the Trustee shall authenticate and deliver,

upon such transfer of each portion of such Restricted Global Note, an equal

aggregate principal amount of certificated Notes of authorized

denominations.  Any portion of a

Restricted Global Note transferred pursuant to this Section shall be executed,

authenticated and delivered only in denominations of $1,000 principal amount

and any integral multiple thereof and registered in such names as the

Depository shall direct.  Any

certificated Initial Note or Private Exchange Note delivered in exchange for an

interest in the Restricted Global Note shall, except as otherwise provided by

Section 2.6(b), bear the restricted securities legend set forth in Exhibit 1

hereto.

 

(c)           Subject

to the provisions of Section 2.7(b), the registered Holder of a Global Note

shall be entitled to grant proxies and otherwise authorize any Person,

including Agent Members and Persons that may hold interests through Agent

Members, to take any action which a Holder is entitled to take under the

Indenture or the Notes.

 

(d)           In

the event of the occurrence the events specified in Section 305 of the

Indenture, the Company shall promptly make available to the Trustee a

reasonable supply of certificated Notes in definitive, fully registered form

without interest coupons.

 

(e)           Notwithstanding

the foregoing, except as otherwise specified in Section 301 of the Indenture,

any Global Note shall be exchangeable pursuant to this Section 2.7 or Sections

304, 306, 906 or 1107 of the Indenture for Notes registered in the name of, and

a transfer of a Global Note of any series may be registered to, any Person

other than the Depository for such Global Note or its nominee only if:

 

(i)       such Depository notifies the Company that

it is unwilling or unable to continue as Depository for such Global Note or if

at any time such Depository ceases to be a clearing agency registered under the

Securities Exchange Act of 1934, as amended, and a successor Depository is not

appointed by the Company within 90 days;

 

(ii)      the Company executes and delivers to the

Trustee a Company Order that such Global Note shall be so exchangeable and the

transfer thereof so registrable; or

 

12

 

(iii)     there shall have occurred and be continuing

an Event of Default or an event which, with the giving of notice or lapse of

time, would constitute an Event of Default with respect to the Notes of such

series and the Depository so requests.

 

Upon the occurrence in respect of any Global Note of any series of any

one or more of the conditions specified in clauses (i), (ii) or (iii) of the

preceding sentence or such other conditions as may be specified as contemplated

by Section 301 of the Indenture for such series, then without unnecessary

delay, but in any event not later than the earliest date on which such interests

may be so exchanged, the Company shall deliver to the Trustee definitive Notes

of that series in aggregate principal amount equal to the principal amount of

such Global Note, executed by the Company.

 

2.8           Defeasance.

 

The Notes shall be subject to defeasance as set forth

in Article 14 of the Indenture.

 

2.9           Covenants.

 

Holders of the Notes

shall have the benefit of the additional restrictive covenants set forth in

Article 3 of this Supplemental Indenture.

 

2.10         Optional

Redemption.

 

The Company may redeem all or part of the Notes at any

time at its option at a Redemption Price equal to the greater of (i) the

principal amount of the Notes being redeemed plus accrued interest to the

Redemption Date or (ii) the Make-Whole Amount for the Notes of the series being

redeemed as more fully provided in the Indenture.

 

If the Company is redeeming less than all the Notes at any time, the

Trustee will select Notes to be redeemed by lot or using a method it considers

fair and appropriate. 

Notice of redemption will be mailed at least 30 days but not more

than 60 days before the Redemption Date to each Holder of Notes to be redeemed in

accordance with Section 106 of the Indenture.  Notes in denominations larger than $1,000 principal amount may be redeemed

in part but only in integral multiples of $1,000. 

The Company will not know the exact Redemption Price until three Business Days

before the Redemption Date.  Therefore,

the notice of redemption will only describe how the Redemption Price will be

calculated.  If money sufficient

to pay the Redemption Price of and accrued interest on all Notes (or portions

thereof) to be redeemed on the Redemption Date is deposited with the Paying

Agent on or before the redemption date and certain other conditions are

satisfied, on and after such Redemption Date interest will cease

to accrue on such Notes (or such portions thereof) called for redemption.

 

ARTICLE III

COVENANTS APPLICABLE TO THE NOTES

 

For the sole benefit of

the holders of the Notes, the Company agrees:

 

13

 

3.1           Limitation on

Liens.

 

(a)           So

long as any Notes remain outstanding, the Company will not, nor will it permit

any Subsidiary to, issue, assume or guarantee (collectively, “create”) any Debt

secured by any mortgage, security interest, pledge, lien or other encumbrance

(collectively, a “mortgage”) upon any property owned by the Company, or any

such Subsidiary, except Debt issued by the Company to any Subsidiary or Debt

issued by any Subsidiary to the Company or any other Subsidiary (whether such

property or Debt is now owned or hereafter acquired), without in any such case

effectively securing, prior to or concurrently with the creation of any such

Debt, the Notes for so long as such Debt is so secured (together with, if the

Company shall so determine, any other Debt of or guaranteed by the Company or

such Subsidiary ranking equally with the Notes and then existing or thereafter

created) equally andratably with, or prior to, such Debt, unless the total

amount of all Debt of the Company and its Subsidiaries secured by a mortgage

(other than Debt secured by mortgages permitted by clauses (i) through (xi)

below) would not exceed at any time outstanding the greater of (I) the

difference between (A) 10% of the Consolidated Net Tangible Assets of the

Company and its Subsidiaries minus (B) the amount, if any, of Debt outstanding

pursuant to clause (x) below which is secured by any Utility Assets and (II)

$300.0 million; provided, that the foregoing restrictions shall not apply to

or prevent the creation or existence of:

 

(i)       mortgages on any property or asset

acquired, constructed or improved by the Company or any of the Subsidiaries

before or after the date of this Supplemental Indenture, and any improvements

thereon, accessions thereto or other property acquired or constructed for use

in connection therewith or related thereto, which are created or assumed prior

to or contemporaneously with, or within one year after, such acquisition or

completion of such construction or improvement to secure or provide for the

payment of all or any part of the purchase price of such property or asset or

the cost of such construction or improvement incurred after the date of this

Supplemental Indenture, plus any costs, expenses, interest and fees incurred in

relation thereto or a guarantee given in respect thereof, or, in addition to

mortgages contemplated by clauses (ii) and (iii) below, mortgages on any

property existing at the time of acquisition thereof; provided, that the

mortgages shall not apply to any other property theretofore owned by the

Company or any such Subsidiary other than, in the case of any such construction

or improvement, (1) unimproved real property on which the property so

constructed or the improvement is located (2) other property (or improvements

thereon) which is an improvement to or is acquired or constructed for use in

connection therewith or related thereto, (3) any right and interest under any

agreement or other documents relating to the property being so constructed or improved

or such other property and (4) the stock of any Subsidiary created or

maintained for the primary purpose of owning the property so constructed or

improved;

 

14

 

(ii)      existing mortgages on any property or

indebtedness of a Person or other entity which is merged with or into, or

consolidated with the Company or a Subsidiary;

 

(iii)     mortgages on any property or indebtedness

of a Person or other entity existing at the time such Person or other entity

becomes a Subsidiary;

 

(iv)     mortgages to secure Debt of a Subsidiary to

the Company or to another Subsidiary;

 

(v)      mortgages in favor of the United States of

America, any State, any foreign country or any department, agency or

instrumentality or political subdivision of any such jurisdiction, to secure

partial, progress, advance or other payments pursuant to any contract or

statute or to secure any Debt incurred for the purpose of financing all or any

part of the purchase price of the cost of constructing or improving the

property subject to such mortgages, including, without limitation, mortgages to

secure Debt of the pollution control or industrial revenue bond type;

 

(vi)     mortgages to secure Debt of the Company or

any Subsidiary maturing within 12 months from the issuance thereof and incurred

in the ordinary course of business;

 

(vii)    mortgages on any property (including,

without limitation, any natural gas, oil or other mineral property) to secure

all or part of the cost of exploration, drilling or development thereof, or to

secure Debt incurred to provide funds for any such purpose;

 

(viii)   mortgages existing on the date of this

Supplemental Indenture;

 

(ix)     mortgages to secure Debt of the Company or

a Subsidiary incurred in connection with a specifically identifiable project

where the mortgage relates and is confined to a property or properties

(including, without limitation, shares or other rights of ownership in entities

that own such property or project) involved in such project and acquired by the

Company or a Subsidiary after the date of the original issuance of the Initial

Notes and the recourse of the creditors in respect of such Debt is limited to

any or all of such project and property (including as aforesaid);

 

(x)      mortgages secured by any Utility Assets;

and

 

(xi)     mortgages for the purposes of extending,

renewing or replacing in whole or in part Debt secured by any mortgage

permitted by this Section 3.1(a), provided, that the principal amount of Debt

secured thereby shall not exceed the principal amount of Debt so secured at the

time of such extension, renewal or replacement, and that such extension,

renewal or replacement shall be limited to all or a part of the property or

Debt which secured the mortgage so extended, renewed or replaced.

 

15

 

(b)           If

at any time the Company or any Subsidiary shall issue, assume or guarantee any

Debt secured by any mortgage and if subsection (a) of this Section 3.1 requires

that the Notes be secured equally and ratably with such Debt, the Company will

promptly deliver to the Trustee an Officer’s Certificate stating that, and an

Opinion of Counsel to the effect that, the covenant of the Company contained in

subsection (a) of this Section has been complied with.

 

ARTICLE IV

EXPENSES

 

4.1           Payment of

Expenses.

 

In connection with the offering, sale and issuance of

the Notes, the Company will pay for all costs and expenses relating to the

offering, sale and issuance of the Notes, including compensation to the Initial

Purchasers payable pursuant to the Purchase Agreement and compensation of the

Trustee under the Indenture.

 

ARTICLE V

MISCELLANEOUS

 

5.1           Ratification of

Indenture.

 

The Indenture, as supplemented by this Supplemental

Indenture, is in all respects ratified and confirmed, and this Supplemental

Indenture shall be deemed part of the Indenture in the manner and to the extent

herein and therein provided.

 

5.2           Trustee Not

Responsible for Recitals.

 

The recitals herein contained are made by the Company

and not by the Trustee, and the Trustee assumes no responsibility for the

correctness thereof.  The Trustee makes

no representation as to the validity or sufficiency of this Supplemental

Indenture.

 

5.3           Governing Law.

 

This Supplemental Indenture and each Note shall be

deemed to be a contract made under the internal laws of the State of New York

and for all purposes shall be construed in accordance with the laws of said

State, without giving effect to any contrary conflict of laws or choice of law

provisions of the law of the State of New York or any other jurisdiction.

 

5.4           Severability.

 

In case any one or more of the provisions contained in

this Supplemental Indenture or in the Notes shall for any reason be held to be

invalid, illegal or unenforceable in any respect, such invalidity, illegality

or unenforceability shall not 

 

16

 

affect any other provisions of this Supplemental Indenture or of the

Notes, but this Supplemental Indenture and the Notes shall be construed as if

such invalid or illegal or unenforceable provision had never been contained

herein or therein.

 

5.5           Counterparts.

 

This Supplemental Indenture may be executed in any

number of counterparts each of which shall be an original, but such

counterparts shall together constitute but one and the same instrument.

 

17

 

IN WITNESS WHEREOF, the parties hereto have caused

this Supplemental Indenture to be duly executed and their respective corporate

seals to he hereunto affixed and attested, on the date or dates indicated in

the acknowledgments and as of the day and year first above written.

 

	

   

  	

  NORTHWESTERN CORPORATION

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Kipp D. Orme

  
	

   

  	

   

  	

  Name: Kipp D. Orme

  
	

   

  	

   

  	

  Title: Vice

  President & 

  Chief Financial Officer

  
	

   

  	

   

  
	

  Attest:

  	

   

  
	

  /s/ Eric R. Jacobsen

  	

   

  	

   

  
	

  Name: Eric R. Jacobsen

  	

   

  
	

  Title:

  	

  Senior Vice President, General Counsel,

  	

   

  
	

   

  	

  Chief Legal Officer & Assistant Corporate

  Secretary

  	

   

  
	

   

  	

   

  
	

   

  	

  JPMORGAN CHASE BANK,

  
	

   

  	

  as Trustee

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ James Neaney

  
	

   

  	

   

  	

  Name: James D. Neaney

  
	

   

  	

   

  	

  Title: Vice President

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  Attest:

  	

   

  
	

  /s/ R. J. Halleran

  	

   

  	

   

  
	

  Name: R. J. Halleran

  	

   

  
	

  Title: Assistant Vice President

  	

   

  
					

 

 

18

 

EXHIBIT 1

 

to

 

SUPPLEMENTAL INDENTURE

 

[FORM OF FACE OF INITIAL

NOTE]

 

[Global Securities

Legend]

 

UNLESS THIS GLOBAL NOTE IS PRESENTED BY AN AUTHORIZED

REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),

NEW YORK, NEW YORK, TO NORTHWESTERN CORPORATION OR ITS AGENT FOR REGISTRATION

OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY GLOBAL NOTE ISSUED IS REGISTERED IN

THE NAME OF CEDE & CO. OR 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 INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN

INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO

TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR

THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL

NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET

FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

 

[Restricted Securities

Legend]

 

THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED

IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES

ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED,

SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN

APPLICABLE EXEMPTION THEREFROM.  EACH

PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE

RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT

PROVIDED BY RULE 144A THEREUNDER.

 

THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF

NORTHWESTERN THAT (A) THIS NOTE MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE

TRANSFERRED, ONLY (I) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY

BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE

SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II)

OUTSIDE THE UNITED STATES IN AN OFFSHORE 

 

19

 

TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (III)

PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY

RULE 144 THEREUNDER (IF AVAILABLE) OR (IV) PURSUANT TO AN EFFECTIVE

REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH

(IV) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE

UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED

TO, NOTIFY ANY PURCHASER OF THIS NOTE FROM IT OF THE RESALE RESTRICTIONS

REFERRED TO IN (A) ABOVE.  IN CONNECTION

WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT

SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY

REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

 

	

  No.

  	

  $

  	

   

  

CUSIP No.:

ISN No.:

Common Code No.:

 

_____ % Notes due March

15, 20__

 

NORTHWESTERN CORPORATION, a Delaware corporation,

promises to pay to CEDE & Co., or registered assigns, the principal sum of

___________________ ________________ Dollars on March 15, 20__.

 

Interest Payment Dates:  March 15 and September 15.

 

Record Dates: 

March 1 and September 1.

.

Additional provisions of this Note are set forth on

the reverse side of this Note.

 

Dated: _______ __, 20__

 

	

   

  	

  NORTHWESTERN CORPORATION

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

  Attest:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  By:

  	

   

  	

   

  	

   

  
	

  Name:

  	

   

  
					

 

20

 

	

  Title:

  	

   

  

 

21

 

TRUSTEE’S CERTIFICATE OF

AUTHENTICATION

Dated:  _______ __, 20__

 

This is one of the Securities of the series

designated therein referred to in the within-mentioned Indenture.

 

	

   

  	

  JPMorgan Chase Bank, as successor to the 

  
	

   

  	

  Chase Manhattan Bank, as Trustee

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

  Authorized

  Officer

  

 

22

 

[FORM OF REVERSE SIDE OF INITIAL NOTE]

 

____% Notes due March 15,

20__

 

ARTICLE VIInterest.

 

NORTHWESTERN CORPORATION, a Delaware corporation (such

corporation, and its successors and assigns under the Indenture hereinafter

referred to, being herein called the “Company”), promises to pay interest on

the principal amount of this Note at the rate per annum shown above; provided,

however, that if a Registration Default (as defined in the Registration Rights

Agreement) occurs, additional interest will accrue on this Note

as provided in the Registration Rights Agreement at a rate of 0.25% per annum

(“Additional Interest Rate”) from and including the date on which any such

Registration Default shall occur but excluding the date on which all

Registration Defaults have been cured for the first 90-day period immediately

following the occurrence of such Registration Default.  The Additional Interest Rate shall increase

by an additional 0.25% per annum with respect to each subsequent 90-day period

until all Registration Defaults have been cured, up to a maximum Additional

Interest Rate of 1.0% per annum.  The

Company will pay interest semi-annually on March 15 and September 15 of each

year, commencing ________ __, 20__. 

Interest on the Notes will accrue from the most recent date to which

interest has been paid, or, if no interest has been paid, from ______ __, 20__,

or such other date on which the Notes are originally issued.  Interest will be computed on the basis of a

360-day year of twelve 30-day months. 

The Company shall pay interest on overdue principal and premium at the

above rate and will pay interest on overdue installments of interest at such

rate to the extent lawful at the rate borne by the Notes.

 

ARTICLE VIIMethod of

Payment.

 

The Company will pay interest on the Notes (except

defaulted interest) to the Persons who are registered Holders of Notes at the

close of business on the March 1 or September 1 next preceding the interest

payment date even if Notes are canceled after the record date and on or before

the interest payment date.  Holders must

surrender Notes to a Paying Agent to collect principal payments.  The Company will pay principal and interest

in money of the United States that at the time of payment is legal tender for

payment of public and private debts.  Payments

in respect of the Notes represented by a Global Note (including principal,

premium, if any, and interest) will be made by wire transfer of immediately

available funds to the accounts specified by The Depository Trust Company.  The Company will make all payments in respect

of a certificated Note (including principal, premium, if any, and interest) at

the Company’s option by (i) mailing a check to the registered address of each

Holder thereof or (ii) by wire transfer to a Dollar account maintained by the

payee with a bank in the United States.

 

ARTICLE VIIIPaying

Agent and Security Registrar.

 

23

 

Initially, the Trustee will act as Paying

Agent and Security Registrar.  The

Company may appoint and change any Paying Agent or Security Registrar without

notice.  The Company may act as Paying

Agent or Security Registrar.

 

ARTICLE IXIndenture.

 

The Company issued the Notes pursuant to a Second

Supplemental Indenture, dated as of March 13, 2002,

which supplements an Indenture and a First Supplemental Indenture, each dated

as of November 1, 1998, (collectively, the “Indenture”), between the

Company and the Trustee.  The terms of

the Notes include those stated in the Indenture and those made part of the

Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C.

§§ 77aaa-77bbbb) as in effect on the date of the Indenture (the “TIA”).  Terms defined in the Indenture and not

defined herein have the meanings ascribed thereto in the Indenture.  The Notes are subject to all such terms, and

Holders of Notes are referred to the Indenture and the TIA for a statement of

those terms.

 

The Notes are senior unsecured obligations of

the Company.  The Initial Notes issued on the

Issue Date and all Exchange Notes or Private Exchange Notes with the same

Stated Maturity as such series of Initial Notes issued in exchange therefor,

together with any Additional Notes of the same series as such Initial Notes, will

be treated as a single class for all purposes under the Indenture.  The Indenture contains a covenant that limits the

ability of the Company and its Subsidiaries to incur secured Debt unless the

total amount of all the secured Debt would not exceed at any time outstanding the

greater of (i) the difference between (a) 10% of Consolidated Net Tangible

Assets of the Company and its Subsidiaries minus (b) the amount, if any, of

Debt outstanding which is secured by any Utility Assets and (ii) $300,000,000.  This covenant is subject to important

exceptions and qualifications as more fully provided in the Indenture.

 

ARTICLE XOptional

Redemption.

 

The Company may redeem all or part of

the Notes at any time at its option at a Redemption Price equal to

the greater of (i) the principal amount of the Notes being redeemed plus accrued

interest to the Redemption Date or (ii) the Make-Whole Amount for the Notes of the

series being redeemed as more fully provided for in the Indenture.

 

ARTICLE XINotice of

Redemption.

 

If the Company is redeeming less than all the Notes at any time, the

Trustee will select Notes to be redeemed by lot or using a method it considers

fair and appropriate.  Notice of

redemption will be mailed at least 30 days but not more than 60 days before

the Redemption Date to each Holder of Notes to be redeemed in

accordance with Section 106 of the Indenture.  Notes in denominations larger than $1,000 principal amount may be redeemed

in part but only in integral multiples of $1,000. 

The Company will not know the exact Redemption Price until three

Business Days before the Redemption Date. 

Therefore, the notice of redemption will only describe how the

Redemption Price will be calculated.  If

money sufficient to pay the Redemption Price of 

 

24

 

and accrued interest on all Notes (or portions thereof) to be redeemed

on the Redemption Date is deposited with the Paying Agent on or before the

Redemption Date and certain other conditions are satisfied, on and after such Redemption

Date interest will cease to accrue on such Notes (or such portions thereof)

called for redemption.

 

ARTICLE XIIAdditional Notes.

 

The Company may, without the consent of the Holders of Notes, create and

issue Additional Notes of any series ranking equally with the Notes of that

series in all respects, including having the same CUSIP number, so that such

Additional Notes shall be consolidated and form a single series with the Notes

of that series and shall have the same terms as to status, redemption or

otherwise as the Notes of that series. 

No Additional Notes may be issued if an Event of Default has occurred

and is continuing with respect to the Notes.

 

ARTICLE XIIIDenominations;

Transfer; Exchange.

 

The Notes are in registered form without coupons in

denominations of $1,000 and integral multiples of $1,000.  Holders of Notes may transfer or exchange

Notes in accordance with the Indenture. 

The Security Registrar may require a Holder of a

Note, among other things, to furnish appropriate endorsements or transfer documents

and to pay any taxes and fees required by law or permitted by the

Indenture.  The Security Registrar need not

register the transfer of or exchange any Note selected for redemption (except,

in the case of a Note to be redeemed in part, the portion of the Note not to be

redeemed) or any Notes for a period of 15 days before a selection of Notes to

be redeemed.

 

ARTICLE XIVPersons

Deemed Owners.

 

The registered Holder of this Note may be treated as

the sole owner of such Note for all purposes.

 

ARTICLE XVUnclaimed

Money.

 

Subject to applicable abandoned property law, if money

for the payment of principal or interest remains unclaimed for two years, the

Trustee or Paying Agent shall pay the money back to the Company at its request

unless an abandoned property law designates another Person.  After any such payment, Holders entitled to

the money must look only to the Company and not to the Trustee or Paying Agent

for payment.

 

ARTICLE XVISatisfaction

and Discharge.

 

Under the Indenture, the Company can terminate its obligations with respect

to the Notes not previously delivered to the Trustee for cancellation when

those Notes have become due and payable or will become due and payable at their

Stated 

 

25

 

Maturity

within one year or are to be called for redemption within one year under

arrangements satisfactory to the Trustee for giving notice of redemption.  The Company may terminate its obligations

with respect to the Notes by depositing with the Trustee, as trust funds in

trust dedicated solely for that purpose, an amount sufficient to pay and

discharge the entire indebtedness on the Notes.  In that case, the Indenture will cease to be of further effect

and the Company’s obligations will be satisfied and discharged with respect to

the Notes (except as to the Company’s obligations to pay all other amounts due

under the Indenture and to provide certain Officers’ Certificates and Opinions

of Counsel to the Trustee).  At the

expense of the Company, the Trustee will execute proper instruments

acknowledging the satisfaction and discharge.

 

ARTICLE XVIIAmendment;

Waiver.

 

Subject to certain exceptions set forth in the

Indenture, (i) the Indenture or the Notes may be amended with the written

consent of the Holders of at least a majority in principal amount outstanding

of the Notes; and (ii) any default or noncompliance with any provision

may be waived with the written consent of the Holders of a majority in

principal amount of the Notes then outstanding.  Subject to certain exceptions set forth in the Indenture, without

the consent of any Holder of a Note, the Company and the Trustee shall be

entitled to amend the Indenture or the Notes (i) to evidence the

succession of another Person to the Company and the assumption by any such

successor of the covenants of the Company contained in the Indenture and in the

Notes; or (ii) to add to the covenants of the Company for the benefit of the

Holders of all or any series of Securities (and if such covenants are to be for

the benefit of less than all series of Securities, stating that such covenants

are being included solely for the benefit of such Series) or to surrender any

right or power conferred upon the Company in the Indenture; or (iii) to add any

additional Events of Default (and if such Events of Default are to be for the

benefit of less than all series of Securities, stating that such Events of

Default are being included solely for the benefit of such Series); or (iv) to

change or eliminate any of the provisions of the Indenture; provided that any

such change or elimination shall become effective only when there is no

Security Outstanding of any series created prior to the execution of such

supplemental indenture which is entitled to the benefit of such provision; or

(v) to secure the Securities; or (vi) to establish the form of securities of

any series as permitted by Sections 201 and 301 of the Indenture; or (vii) to

evidence and provide for the acceptance of appointment under the Indenture by a

successor Trustee with respect to the Securities of one or more series and to

add to or change any of the provisions of the Indenture as shall be necessary

to provide for or facilitate the administration of the trusts under the

Indenture by more than one Trustee pursuant to the requirements of Section

610(b) of the Indenture; or (viii) to close the Indenture with respect to the

authentication and delivery of additional series of Securities, to cure any

ambiguity, to correct or supplement any provision in the Indenture which may be

inconsistent with any other provision in the Indenture, or to make any other

provisions with respect to matters or questions arising under the Indenture;

provided such action shall not adversely affect the interests of the holders of

all securities of any series in any material respect.

 

26

 

ARTICLE XVIIIDefaults

and Remedies.

 

If an Event of Default occurs and is continuing, the

Trustee or the Holders of at least 25% in aggregate principal amount of the

Notes may declare all the Notes to be due and payable immediately.  Certain events of bankruptcy or insolvency

are Events of Default which will result in the Notes being due and payable

immediately upon the occurrence of such Events of Default.

 

Holders of Notes may not enforce the Indenture or the

Notes except as provided in the Indenture. 

The Trustee may refuse to enforce the Indenture or the Notes unless it

receives indemnity or security satisfactory to it.  Subject to certain limitations, Holders of a

majority in principal amount of the Notes may direct the Trustee in its

exercise of any trust or power.  The

Trustee may withhold from Holders of Notes notice of any continuing Default

(except a Default in payment of principal or interest) if it determines that withholding

such notice is in the interest of the Holders of Notes.

 

ARTICLE XIXTrustee

Dealings with the Company.

 

Subject to certain limitations imposed by the TIA, the

Trustee under the Indenture, in its individual or any other capacity, may

become the owner or pledgee of Notes and may otherwise deal with and collect

obligations owed to it by the Company or its Affiliates and may otherwise deal

with the Company or its Affiliates with the same rights it would have if it

were not Trustee.

 

ARTICLE XXNo Recourse

Against Others.

 

A director, officer, employee or stockholder, as such,

of the Company or the Trustee shall not have any liability for any obligations

of the Company under the Notes or the Indenture or for any claim based on, in

respect of or by reason of such obligations or their

creation.  By accepting a Note,

each Holder of a Note waives and releases all such liability.  The waiver and release are part of the

consideration for the issue of the Notes.

 

ARTICLE XXIAuthentication.

 

This Note shall not be valid until an authorized

signatory of the Trustee (or an authenticating agent) manually signs the

certificate of authentication on the face of this Note.

 

ARTICLE XXIIAbbreviations.

 

Customary abbreviations may be used in the name of a

Holder of a Note or an assignee, such as TEN COM (=tenants in common), TEN ENT

(=tenants by the 

 

27

 

entireties), JT TEN (=joint tenants with rights of survivorship and not

as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors

Act).

 

ARTICLE XXIIICUSIP,

ISIN and Common Code Numbers.

 

Pursuant to a recommendation promulgated by

the Committee on Uniform Security Identification Procedures, the Company has

caused CUSIP numbers to be printed on the Notes and has directed the Trustee to

use such CUSIP numbers in notices of redemption as a convenience to Holders of

Notes.  To the extent such numbers have been

issued, the Company has caused ISN and Common Code numbers to be similarly

printed on the Notes and has similarly instructed the Trustee.  No representation is made as to the

accuracy of such numbers either as printed on the Notes or as contained in any

notice of redemption and reliance may be placed only on the other

identification numbers placed thereon.

 

ARTICLE XXIVHolders’

Compliance with Registration Rights Agreement.

 

Each Holder of a Note, by acceptance hereof,

acknowledges and agrees to the provisions of the Registration Rights Agreement,

including, without limitation, the obligations of the Holders with respect to a

registration and the indemnification of the Company to the extent provided

therein.

 

ARTICLE XXVGoverning

Law.

 

This Security shall be governed by, and construed in

accordance with, the internal laws of the State of New York,

without giving effect to contrary conflict of laws or choice of laws

provisions of the State of New York or any other jurisdiction.

 

 

The Company will furnish to any Holder of a Note upon

written request and without charge to such Holder of a Note a copy of the

Indenture.  Requests may be made to:

 

NorthWestern Corporation

125 S. Dakota Avenue, Suite 1100

Sioux Falls, South Dakota  57104

Attention:  Secretary

 

28

 

 

ASSIGNMENT FORM

 

To assign this Note, complete the fo rm below:

 

I or we assign and transfer this Note to:

 

[Print or type assignee’s name, address and zip

code]

 

[Insert assignee’s soc. sec. or tax I.D. No. ]

 

and irrevocably appoint __________________ agent to

transfer this Note on the books of NorthWestern Corporation.  The agent may substitute another to act for

him.

 

 

	

  Date: 

  	

   

  	

   

  	

  Your Signature:

  	

   

  

 

Sign exactly as your name appears on the face of this Note.

 

In

connection with any transfer of any of the Notes evidenced by this certificate

occurring prior to the expiration of the period referred to in Rule 144(k)

under the Securities Act after the later of the date of original issuance of

such Notes and the last date, if any, on which such Notes were owned by

NorthWestern Corporation or any Affiliate of 

NorthWestern Corporation, the undersigned confirms that such Notes are

being transferred in accordance with its terms.

 

CHECK ONE

BOX BELOW

 

(1)           o            to NorthWestern Corporation; or

 

(2)           o            pursuant to an effective

registration statement under the Securities Act of 1933; or

 

(3)           o            inside the United States to a

“qualified institutional buyer” (as defined in Rule 144A under the Securities 

Act of 1933) that purchases for its own account or for the account of a

qualified institutional buyer to whom notice is given that such transfer is

being made in reliance on Rule 144A, in each case pursuant to and in compliance

with Rule 144A under the Securities Act of 1933; or

 

29

 

(4)           o            outside the United States in an

offshore transaction within the meaning of Regulation S under the

 Securities Act of 1933 in

compliance with Rule 904 under the Securities Act of 1933; or

 

(5)           o            pursuant to the exemption from

registration provided by Rule 144 under the Securities Act of 1933.

 

Unless one of the boxes is checked, the Trustee will refuse to register

any of the Notes evidenced by this certificate in the name of any person other

than the registered holder thereof; provided, however, that if box (4) or (5)

is checked, the Trustee shall be entitled to require, prior to registering any

such transfer of the Notes, such legal opinions, certifications and other

information as NorthWestern Corporation or the Trustee has reasonably required

to confirm that such transfer is being made pursuant to an exemption from, or

in a transaction not subject to, the registration requirements of the

Securities Act of 1933, such as the exemption provided by rule 144 under such

Act.

 

	

   

  	

   

  	

   

  
	

  Signature

  
	

   

  	

   

  
	

  Signature Guarantee:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  Signature must be guaranteed

  	

   

  	

  Signature

  
								

 

Signatures must be guaranteed by an “eligible guarantor institution”

meeting the requirements of the Security Registrar, which requirements include

membership or participation in the Security Transfer Agent Medallion Program (“STAMP”)

or such other “signature guarantee program” as may be determined by the

Security Registrar in addition to, or in substitution for, STAMP, all in

accordance with the Securities Exchange Act of 1934, as amended.

 

30

 

TO BE COMPLETED BY PURCHASER IF (3) ABOVE

IS CHECKED.

 

The undersigned represented and warrants that it is purchasing this Note

for its own account or any account with respect to which it exercises sole

investment discretion and that is and any such account is a “qualified

institutional buyer” within the meaning of Rule 144A under the Securities act

of 1933, and is aware that the sale to it is being made in reliance on Rule

144A and acknowledges that it has received such information regarding the

determined not to request such information and that is aware that the

transferor is relying upon the undersigned’s foregoing representations in order

to claim the exemption from registration provided by Rule 144A.

 

	

  Dated:

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  NOTICE:  To be executed by an

  executive officer

  

 

31

 

DB Draft of March 6, 2002

 

[TO BE ATTACHED TO GLOBAL

NOTES]

SCHEDULE OF INCREASES OR

DECREASES IN GLOBAL NOTE

 

The following increases or decreases in this Global

Note have been made:

 

	

  Date of

  Exchange

  	

   

  	

  Amount of decrease in 

  Principal Amount of this 

  Global Note

  	

   

  	

  Amount of increase in 

  Principal Amount of this 

  Global Note

  	

   

  	

  Principal Amount of this 

  Global Note following 

  such decrease or increase

  	

   

  	

  Signature of authorized 

  signatory of Trustee or

  Notes Custodian

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  

 

32

 

EXHIBIT 2

to

SUPPLEMENTAL INDENTURE

 

[FORM OF FACE OF EXCHANGE

NOTE

OR PRIVATE EXCHANGE NOTE]

 

*/**/

 

*/[If the Note is to be issued in global form add

the Global Notes Legend from Exhibit 1 to the Supplemental Indenture and the

attachment from such Exhibit 1 captioned “[TO BE ATTACHED TO GLOBAL NOTES] —

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE”.]

 

**/[If the Note is a Private Exchange Note issued in

a Private Exchange to an Initial Purchaser holding an unsold portion of its initial

allotment, add the Restricted Securities Legend from Exhibit 1 to the

Supplemental Indenture and replace the Assignment Form included in this Exhibit

A with the Assignment Form included in such Exhibit 1.]

 

 

	

  No.

  	

   

  	

   

  	

  $

  	

   

  
	

  CUSIP

  	

   No.:

  	

   

  	

   

  	

   

  
	

  ISN 

  	

  No.:

  	

   

  	

   

  	

   

  
	

  Common Code 

  	

  No.:

  	

   

  	

   

  	

   

  
												

 

 

___% Notes due March 15,

20__

 

NORTHWESTERN CORPORATION, a Delaware corporation,

promises to pay to CEDE & Co., or registered assigns, the principal sum of

_____________________________________ Dollars on March 15, 20___.

 

Interest Payment Dates:  March 15 and September 15.

 

33

 

Record Dates: 

March 1 and September 1.

 

Additional provisions of this Note are set forth on

the reverse side of this Note.

 

	

  Dated: _______ __, 200_

  	

   

  
	

   

  
	

   

  	

  NORTHWESTERN CORPORATION

  
	

   

  
	

   

  	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  	

   

  
	

   

  	

  Title:

  	

   

  
	

   

  
	

   

  
	

  Attest:

  
	

   

  
	

  By:

  	

   

  	

   

  	 

	

   

  	

  Name:

  
	

   

  	

  Title

  
										

 

34

 

TRUSTEE’S CERTIFICATE OF

AUTHENTICATION

 

	

  Dated:  _____

  __, 20__

  	

   

  	

   

  
	

   

  
	

  This is one of the Securities of the series

  designated therein referred to in the within-mentioned Indenture.

  
	

   

  	

   

  
	

   

  	

  JPMorgan Chase Bank, as successor to the

  Chase Manhattan Bank, as Trustee

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

  Authorized Officer

  
						

 

35

 

[FORM OF REVERSE SIDE OF EXCHANGE NOTE OR

PRIVATE

EXCHANGE NOTE]

 

_____% Notes due March

15, 20___

 

1.             Interest.

 

NORTHWESTERN CORPORATION, a Delaware corporation (such

corporation, and its successors and assigns under the Indenture hereinafter

referred to, being herein called the “Company”), promises to pay interest on

the principal amount of this Note at the rate per annum shown above.  The Company will pay interest semi-annually

on March 15 and September 15 of each year, commencing ________

__, 20__.  Interest on the Notes

will accrue from the most recent date to which interest has been paid, or, if

no interest has been paid, from _______ __, 20__, or such other date on which

the Notes are originally issued. 

Interest will be computed on the basis of a 360-day year of twelve

30-day months.  The Company shall pay

interest on overdue principal and premium at the above rate and will pay

interest on overdue installments of interest at such rate to the extent lawful

at the rate borne by the Notes.

 

ARTICLE XXVIMethod of

Payment.

 

The Company will pay interest on the Notes (except

defaulted interest) to the Persons who are registered Holders of Notes at the

close of business on the March 1 or September 1 next preceding the interest

payment date even if Notes are canceled after the record date and on or before

the interest payment date.  Holders must

surrender Notes to a Paying Agent to collect principal payments.  The Company will pay principal and interest

in money of the United States that at the time of payment is legal tender for

payment of public and private debts.  Payments

in respect of the Notes represented by a Global Note (including principal,

premium, if any, and interest) will be made by wire transfer of immediately

available funds to the accounts specified by The Depository Trust Company.  The Company will make all payments in respect

of a certificated Note (including principal, premium, if any, and interest) at

the Company’s option by (i) mailing a check to the registered address of each

Holder thereof or (ii) by wire transfer to a Dollar account maintained by the

payee with a bank in the United States.

 

ARTICLE XXVIIPaying

Agent and Security Registrar.

 

Initially, the Trustee will act as Paying

Agent and Security Registrar.  The

Company may appoint and change any Paying Agent or Security Registrar without

notice.  The Company may act as Paying

Agent or Security Registrar.

 

ARTICLE XXVIIIIndenture.

 

The Company issued the Notes pursuant to a Second

Supplemental Indenture, dated as of March 13, 2002,

which supplements an Indenture and a First 

 

36

 

Supplemental Indenture, each dated as of November 1, 1998,

(collectively, the “Indenture”), between the Company and the

Trustee.  The terms of the Notes include

those stated in the Indenture and those made part of the Indenture by reference

to the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as

in effect on the date of the Indenture (the “TIA”).  Terms defined in the Indenture and not

defined herein have the meanings ascribed thereto in the Indenture.  The Notes are subject to all such terms, and

Holders of Notes are referred to the Indenture and the TIA for a statement of

those terms.

 

The Notes are senior unsecured obligations of

the Company.  The Initial Notes issued on

the Issue Date and all Exchange Notes or Private Exchange Notes with the same

Stated Maturity as such series of Initial Notes issued in exchange therefor,

together with any Additional Notes of the same series as such Initial Notes, will

be treated as a single class for all purposes under the Indenture.  The Indenture contains a covenant that limits the

ability of the Company and its Subsidiaries to incur secured Debt unless the

total amount of all the secured Debt would not exceed at any time outstanding the

greater of (i) the difference between (a) 10% of Consolidated Net Tangible

Assets of the Company and its Subsidiaries minus (b) the amount, if any, of

Debt outstanding which is secured by any Utility Assets and (ii) $300,000,000.  This covenant is subject to important

exceptions and qualifications as more fully provided in the Indenture.

 

ARTICLE XXIXOptional

Redemption.

 

The Company may redeem all or part of

the Notes at any time at its option at a Redemption Price equal to

the greater of (i) the principal amount of the Notes being redeemed plus accrued

interest to the Redemption Date or (ii) the Make-Whole Amount for the Notes of the

series being redeemed as more fully provided for in the Indenture.

 

ARTICLE XXXNotice of

Redemption.

 

If the Company is redeeming less than all the Notes at any

time, the Trustee will select Notes to be redeemed by lot or using a method it

considers fair and appropriate.  Notice

of redemption will be mailed at least 30 days but not more than 60 days before

the Redemption Date to each Holder of Notes to be redeemed in

accordance with Section 106 of the Indenture.  Notes in denominations larger than $1,000 principal amount may be redeemed

in part but only in integral multiples of $1,000. 

The Company will not know the exact Redemption Price until three

Business Days before the Redemption Date. 

Therefore, the notice of redemption will only describe how the

Redemption Price will be calculated.  If

money sufficient to pay the Redemption Price of and accrued interest on all

Notes (or portions thereof) to be redeemed on the Redemption Date is deposited

with the Paying Agent on or before the Redemption Date and certain other

conditions are satisfied, on and after such Redemption Date interest will cease

to accrue on such Notes (or such portions thereof) called for redemption.

 

ARTICLE XXXIAdditional Notes.

 

37

 

The Company may, without the consent of the Holders of Notes, create and issue

Additional Notes of any series ranking equally with the Notes of that series in

all respects, including having the same CUSIP number, so that such Additional

Notes shall be consolidated and form a single series with the Notes of that series

and shall have the same terms as to status, redemption or otherwise as the

Notes of that series.  No Additional

Notes may be issued if an Event of Default has occurred and is continuing with

respect to the Notes.

 

ARTICLE XXXIIDenominations;

Transfer; Exchange.

 

The Notes are in registered form without coupons in

denominations of $1,000 and integral multiples of $1,000.  Holders of Notes may transfer or exchange

Notes in accordance with the Indenture. 

The Security Registrar may require a Holder of a

Note, among other things, to furnish appropriate endorsements or transfer

documents and to pay any taxes and fees required by law or permitted by the

Indenture.  The Security Registrar need not

register the transfer of or exchange any Note selected for redemption (except,

in the case of a Note to be redeemed in part, the portion of the Note not to be

redeemed) or any Notes for a period of 15 days before a selection of Notes to

be redeemed.

 

ARTICLE XXXIIIPersons

Deemed Owners.

 

The registered Holder of this Note may be treated as

the sole owner of such Note for all purposes.

 

ARTICLE XXXIVUnclaimed

Money.

 

Subject to applicable abandoned property law, if money

for the payment of principal or interest remains unclaimed for two years, the

Trustee or Paying Agent shall pay the money back to the Company at its request

unless an abandoned property law designates another Person.  After any such payment, Holders entitled to

the money must look only to the Company and not to the Trustee or Paying Agent

for payment.

 

ARTICLE XXXVSatisfaction

and Discharge.

 

Under the Indenture, the Company can terminate its obligations with

respect to the Notes not previously delivered to the Trustee for cancellation

when those Notes have become due and payable or will become due and payable at

their Stated Maturity within one year or are to be called for redemption within

one year under arrangements satisfactory to the Trustee for giving notice of

redemption.  The Company may terminate

its obligations with respect to the Notes by depositing with the Trustee, as

trust funds in trust dedicated solely for that purpose, an amount sufficient to

pay and discharge the entire indebtedness on the Notes.  In that case, the Indenture will cease to be

of further effect and the Company’s obligations will be satisfied and

discharged with respect to the Notes (except as to the Company’s obligations to

pay all other amounts due

 

38

 

under the

Indenture and to provide certain Officers’ Certificates and Opinions of Counsel

to the Trustee).  At the expense of the

Company, the Trustee will execute proper instruments acknowledging the

satisfaction and discharge.

 

ARTICLE XXXVIAmendment;

Waiver.

 

Subject to certain exceptions set forth in the

Indenture, (i) the Indenture or the Notes may be amended with the written

consent of the Holders of at least a majority in principal amount outstanding

of the Notes; and (ii) any default or noncompliance with any provision

may be waived with the written consent of the Holders of a majority in

principal amount of the Notes then outstanding.  Subject to certain exceptions set forth in the Indenture, without

the consent of any Holder of a Note, the Company and the Trustee shall be

entitled to amend the Indenture or the Notes (i) to evidence the

succession of another Person to the Company and the assumption by any such

successor of the covenants of the Company contained in the Indenture and in the

Notes; or (ii) to add to the covenants of the Company for the benefit of the

Holders of all or any series of Securities (and if such covenants are to be for

the benefit of less than all series of Securities, stating that such covenants

are being included solely for the benefit of such Series) or to surrender any

right or power conferred upon the Company in the Indenture; or (iii) to add any

additional Events of Default (and if such Events of Default are to be for the

benefit of less than all series of Securities, stating that such Events of

Default are being included solely for the benefit of such Series); or (iv) to

change or eliminate any of the provisions of the Indenture; provided that any

such change or elimination shall become effective only when there is no

Security Outstanding of any series created prior to the execution of such

supplemental indenture which is entitled to the benefit of such provision; or

(v) to secure the Securities; or (vi) to establish the form of securities of

any series as permitted by Sections 201 and 301 of the Indenture; or (vii) to

evidence and provide for the acceptance of appointment under the Indenture by a

successor Trustee with respect to the Securities of one or more series and to

add to or change any of the provisions of the Indenture as shall be necessary

to provide for or facilitate the administration of the trusts under the

Indenture by more than one Trustee pursuant to the requirements of Section

610(b) of the Indenture; or (viii) to close the Indenture with respect to the

authentication and delivery of additional series of Securities, to cure any

ambiguity, to correct or supplement any provision in the Indenture which may be

inconsistent with any other provision in the Indenture, or to make any other

provisions with respect to matters or questions arising under the Indenture;

provided such action shall not adversely affect the interests of the holders of

all securities of any series in any material respect.

 

ARTICLE XXXVIIDefaults

and Remedies.

 

If an Event of Default occurs and is continuing, the

Trustee or the Holders of at least 25% in aggregate principal amount of the

Notes may declare all the Notes to be due and payable immediately.  Certain events of bankruptcy or insolvency

are Events of 

 

39

 

Default which will result in the Notes being due and payable

immediately upon the occurrence of such Events of Default.

 

Holders of Notes may not enforce the Indenture or the

Notes except as provided in the Indenture. 

The Trustee may refuse to enforce the Indenture or the Notes unless it

receives indemnity or security satisfactory to it.  Subject to certain limitations, Holders of a

majority in principal amount of the Notes may direct the Trustee in its

exercise of any trust or power.  The

Trustee may withhold from Holders of Notes notice of any continuing Default

(except a Default in payment of principal or interest) if it determines that

withholding such notice is in the interest of the Holders of Notes.

 

ARTICLE XXXVIIITrustee

Dealings with the Company.

 

Subject to certain limitations imposed by the TIA, the

Trustee under the Indenture, in its individual or any other capacity, may

become the owner or pledgee of Notes and may otherwise deal with and collect

obligations owed to it by the Company or its Affiliates and may otherwise deal

with the Company or its Affiliates with the same rights it would have if it

were not Trustee.

 

ARTICLE XXXIXNo

Recourse Against Others.

 

A director, officer, employee or stockholder, as such,

of the Company or the Trustee shall not have any liability for any obligations

of the Company under the Notes or the Indenture or for any claim based on, in

respect of or by reason of such obligations or their

creation.  By accepting a Note,

each Holder of a Note waives and releases all such liability.  The waiver and release are part of the

consideration for the issue of the Notes.

 

ARTICLE XLAuthentication.

 

This Note shall not be valid until an authorized

signatory of the Trustee (or an authenticating agent) manually signs the

certificate of authentication on the face of this Note.

 

ARTICLE XLIAbbreviations.

 

Customary abbreviations may be used in the name of a

Holder of a Note or an assignee, such as TEN COM (=tenants in common), TEN ENT

(=tenants by the entireties), JT TEN (=joint tenants with rights of

survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A

(=Uniform Gift to Minors Act).

 

ARTICLE XLIICUSIP,

ISIN and Common Code Numbers.

 

40

 

Pursuant to a recommendation promulgated by

the Committee on Uniform Security Identification Procedures, the Company has

caused CUSIP numbers to be printed on the Notes and has directed the Trustee to

use such CUSIP numbers in notices of redemption as a convenience to Holders of

Notes.  To the extent such numbers have been issued,

the Company has caused ISN and Common Code numbers to be similarly printed on

the Notes and has similarly instructed the Trustee.  No representation is made as to the accuracy of such

numbers either as printed on the Notes or as contained in any notice of

redemption and reliance may be placed only on the other identification numbers

placed thereon.

 

ARTICLE XLIIIHolders’

Compliance with Registration Rights Agreement.

 

Each Holder of a Note, by acceptance hereof,

acknowledges and agrees to the provisions of the Registration Rights Agreement,

including, without limitation, the obligations of the Holders with respect to a

registration and the indemnification of the Company to the extent provided

therein.

 

ARTICLE XLIVGoverning

Law.

 

This Security shall be governed by, and construed in

accordance with, the internal laws of the State of New York,

without giving effect to contrary conflict of laws or choice of laws

provisions of the State of New York or any other jurisdiction.

 

 

The Company will furnish to any Holder of a Note upon

written request and without charge to such Holder of a Note a copy of the

Indenture.  Requests may be made to:

 

NorthWestern Corporation

125 S. Dakota Avenue, Suite 1100

Sioux Falls, South Dakota  57104

Attention:  Secretary

 

41

 

ASSIGNMENT FORM

 

To assign this Note, complete the form below:

 

I or we assign and transfer this Note to:

 

[Print or type

assignee’s name, address and zip code]

 

[Insert assignee’s

soc. sec. or tax I.D. No. ]

 

and irrevocably appoint ___________________ agent to

transfer this Note on the books of NorthWestern Corporation.  The agent may substitute another to act for

him.

 

 

	

  Date: 

  	

   

  	

   

  	

   

  	

  Your Signature:

  	

   

  	

   

  

 

Sign exactly as your name appears on the face of this Note.

 

 

 

42

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