Document:

Exhibit 10.3

 

EXECUTION VERSION

 

 

YINTECH INVESTMENT HOLDINGS LIMITED

 

 

THIRD AMENDED AND RESTATED PRE-IPO RESTRICTED SHARE UNIT SCHEME1

 

(approved and adopted by a board resolution passed on 12 April, 2016)

 

(amended and restated effective as of 18 November, 2015)

 

 

1   Assumed from Win Yin Financial And Information Service Company Limited (see Explanatory Note on p. 1).

 

 

Table of Contents

 

	
 
    	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
1.
    	
 
    	
DEFINITIONS AND INTERPRETATION
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
PURPOSES AND OBJECTIVES OF THIS SCHEME
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.
    	
 
    	
CONDITIONS
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.
    	
 
    	
SIZE OF THIS SCHEME
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
5.
    	
 
    	
DURATION AND ADMINISTRATION OF THIS SCHEME
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
6.
    	
 
    	
GRANT OF AWARDS
    	
 
    	
4
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
7.
    	
 
    	
VESTING OF AWARDS
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
8.
    	
 
    	
ACCELERATION OF VESTING
    	
 
    	
6
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
9.
    	
 
    	
LAPSE OF AWARDS
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
10.
    	
 
    	
CANCELLATION OF AWARDS
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
11.
    	
 
    	
RIGHTS ATTACHED TO AWARDS AND SHARES
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
12.
    	
 
    	
ASSIGNMENT OF AWARDS
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
13.
    	
 
    	
REORGANIZATION OF CAPITAL STRUCTURE
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
14.
    	
 
    	
DISPUTES
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
15.
    	
 
    	
ALTERATION OR AMENDMENT OF THIS SCHEME
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
16.
    	
 
    	
TERMINATION
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
17.
    	
 
    	
MISCELLANEOUS
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
18.
    	
 
    	
GOVERNING LAW
    	
 
    	
10
    

 

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Explanatory Note:  In 2015, Yintech Investment Holdings Limited (“Yintech”) initiated a series of transactions constituting a reorganization (the “Reorganization”), pursuant to which a majority of the People’s Republic of China (the “PRC”) subsidiaries of Win Yin Financial And Information Service Company Limited (“Win Yin”) became the wholly owned subsidiaries of Shanghai Qian Zhong Su Investment Co., Ltd., Yintech’s wholly owned PRC subsidiary. In connection with the recently completed reorganization,  Yintech has assumed the Win Yin’s Pre-IPO Restricted Share Unit Scheme (the “Scheme”), which was amended and restated to reflect the intent of the parties to the Reorganization that the RSUs issued and outstanding under the Scheme be adjusted to relate to securities of Yintech Investment Holding Limited.  Further, on the Assumption Date and in connection with the Reorganization, Yintech assumed the Scheme and all rights, duties and obligations thereunder.

 

DEFINITIONS AND INTERPRETATION

 

1.1                               In this Scheme, save where the context otherwise requires, the following expressions have the respective meanings set opposite to them:

 

	
“Adoption Date”
    	
 
    	
means 13 January, 2015, the date on which this   Scheme is duly approved and adopted by a resolution of the Shareholders of   the Company;
    
	
 
    	
 
    	
 
    
	
“Articles”
    	
 
    	
means the memorandum and articles of association of   the Company as amended from time to time;
    
	
 
    	
 
    	
 
    
	
“Assumption Date”
    	
 
    	
means 18 November, 2015, the date on which the   Scheme was assumed by Yintech Investment Holding Limited;
    
	
 
    	
 
    	
 
    
	
“Auditors”
    	
 
    	
means the auditors for the time being of the   Company;
    
	
 
    	
 
    	
 
    
	
“Award(s)”
    	
 
    	
means award(s) of RSUs granted to a Grantee   pursuant to this Scheme;
    
	
 
    	
 
    	
 
    
	
“Board”
    	
 
    	
means the board of directors of the Company;
    
	
 
    	
 
    	
 
    
	
“Board Designee” 
    	
 
    	
means a member of the Board designated by the Board to make such   determinations as are set forth hereunder, provided that no member of the   Board shall make any such determination involving any Award held by such   Board member.
    
	
 
    	
 
    	
 
    
	
“Business Associate”
    	
 
    	
means any advisors, consultants, distributors,   contractors, contract manufacturers, agents, customers, business partners,   joint venture business partners or service providers of any member of the   Group;
    
	
 
    	
 
    	
 
    
	
“Company”
    	
 
    	
prior to the Assumption Date, means Win Yin   Financial and Information Service Company Limited, an exempted company incorporated   on November 18, 2013 and existing under the laws of Cayman Islands with   limited liability, and on and after the Assumption Date means Yintech   Investment Holdings Limited;
    
	
 
    	
 
    	
 
    
	
“Director”
    	
 
    	
means any director (including executive director,   non-executive director and independent non-executive director) of any member   of the Group from time to time;
    
	
 
    	
 
    	
 
    
	
“Eligible Person(s)”
    	
 
    	
means any Director, Employee or Business Associate   who the Board considers, in its sole discretion, has contributed or will contribute   to the Group;
    
	
 
    	
 
    	
 
    
	
“Employee”
    	
 
    	
means any employee or officer of any member of the   Group;
    

 

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“Grantee(s)”
    	
 
    	
means the Selected Person(s) who have accepted   the grant(s) of Award(s) by the Board pursuant to this Scheme;
    
	
 
    	
 
    	
 
    
	
“Group”
    	
 
    	
the Company and its Subsidiaries;
    
	
 
    	
 
    	
 
    
	
“IPO”
    	
 
    	
means the initial public offering of the Company in   the United States;
    
	
 
    	
 
    	
 
    
	
“PRC”
    	
 
    	
means the People’s Republic of China, except where   the context requires, references in this Scheme to “PRC” do not apply to   Taiwan, the Macau Special Administrative Region and the Hong Kong Special   Administrative Region;
    
	
 
    	
 
    	
 
    
	
“RSU(s)”
    	
 
    	
means restricted share unit(s), a contingent right   to receive either Share(s) or an equivalent value in cash with reference   to the market value of the Share(s) on or about the date of vesting, as   determined by the Board in its sole discretion;
    
	
 
    	
 
    	
 
    
	
“RSU Trustee”
    	
 
    	
means a professional trustee, who is an independent   third party, appointed by the Board to assist with the administration and   vesting of Awards granted pursuant to this Scheme;
    
	
 
    	
 
    	
 
    
	
“Selected Person(s)”
    	
 
    	
means Eligible Person(s) selected by the Board   to receive the Award(s) under the Scheme at its discretion;
    
	
 
    	
 
    	
 
    
	
“Scheme”
    	
 
    	
means this Third Amended and Restated Pre-IPO   Restricted Share Unit Scheme in its present or any amended form;
    
	
 
    	
 
    	
 
    
	
“Shareholder”
    	
 
    	
means a holder of shares of the Company;
    
	
 
    	
 
    	
 
    
	
“Shares”
    	
 
    	
means ordinary shares of US$0.0001 each in the   capital of the Company (or of such other nominal amount as shall result from   a sub-division, consolidation, reclassification or reconstruction of the   share capital of the Company from time to time).
    
	
 
    	
 
    	
 
    
	
“Subsidiary(ies)”
    	
 
    	
means any entity in which the Company has at any   time, directly or indirectly, securities or other ownership interests having   ordinary voting power to elect a majority of the board of directors or other   persons performing similar function.
    
	
 
    	
 
    	
 
    
	
“Vesting”
    	
 
    	
means, in relation to an Award, upon fulfillment of   the vesting schedule and vesting criteria (if any), a Grantee becoming   entitled to have the rights attached to the Shares pursuant to this Scheme.   The terms “vest”, “vesting”   and “vested” shall be constructed   accordingly.
    

 

1.2                               Construction of References

 

In this Scheme:

 

(i)                                     any reference to a section is a reference to a section of this Scheme;

 

(ii)                                  any reference to any statute or statutory provision shall be construed as a reference to such statute or statutory provision as respectively amended, consolidated or re-enacted from time to time, or as its operation is modified by any other statute or statutory provision (whether with or without modification) from time to time, and shall include any subsidiary legislation enacted under the relevant statute; and

 

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(iii)                               any reference to a person includes an individual, a body corporate, a partnership, other unincorporated body or association of persons and any state or state agency.

 

1.3                               Interpretation

 

In this Scheme:

 

(i)                                     words importing the plural include the singular and vice versa; and

 

(ii)                                  words importing a gender include every gender.

 

1.4                               Headings

 

The headings are inserted for convenience only and shall not limit, vary, extend or otherwise affect the construction of any provision of this Scheme.

 

2.                                      PURPOSES AND OBJECTIVES OF THIS SCHEME

 

2.1                               The specific objective of this Scheme is to reward the Grantees for their services and contribution to the success of the Group, and to provide incentives to them to further contribute to the Group.

 

2.2                               These rules serve to set out the terms and conditions upon which the incentive arrangements for the Grantees shall operate.

 

3.                                      CONDITIONS

 

3.1                               This Scheme shall be subject to the passing by the shareholder(s) of the Company of a resolution to approve the adoption of this Scheme and to authorize the Board to grant the Award(s) under this Scheme and to allot and issue, procure the transfer of, and otherwise deal with the Shares in connection with the Scheme.

 

4.                                      SIZE OF THIS SCHEME

 

4.1                               Unless otherwise duly approved by the shareholders of the Company, the Shares in aggregate underlying all Awards under this Scheme shall not exceed 12,000,000 Shares (the “RSU Limit”); provided, that subject to the approval of the shareholders of the Company, following the Assumption Date the RSU Limit shall not exceed 100,000,000 Shares.

 

4.2                               The RSU Limit may be adjusted upon the occurrence of such events and in such manner as described in Section 13.

 

5.                                      DURATION AND ADMINISTRATION OF THIS SCHEME

 

5.1                               Subject to the fulfillment of the conditions in Section 3.1 and Section 15, this Scheme shall be valid and effective for a term of 10 years commencing on the Adoption Date (the “Scheme Period”), after which period no further Awards shall be granted or accepted, but the provisions of this Scheme shall remain in full force and effect in order to give effect to the vesting of Awards granted and accepted prior to the expiration of the Scheme Period.

 

5.2                               This Scheme shall be subject to the administration of the Board in accordance with the rules of this Scheme.  The Board has the power to construe and interpret the rules of this Scheme and the terms of the Awards granted hereunder. Any decision of the Board made in accordance with the rules of this Scheme shall be final and binding, provided in each case that such decision is made in accordance with the Articles and any applicable laws.

 

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5.3                               The Board may delegate the authority to administer this Scheme to any one or more Directors.

 

5.4                               The Board will appoint the RSU Trustee to administer the granting and vesting of Awards granted to the Grantees pursuant to this Scheme. Subject to compliance with the laws of the Cayman Islands and the Articles, the Company shall provide such assistance as may be appropriate or necessary to enable the RSU Trustee to satisfy its obligations in connection with the administration and vesting of Awards granted to the Grantees pursuant to this Scheme.

 

No member of the Board shall be personally liable by reason of any contract or other instrument executed by such member or on his behalf in his capacity as a member of the Board nor for any mistake of judgment made in good faith, and the Company shall indemnify and hold harmless each employee, officer or director of the Company to whom any duty or power relating to the administration or interpretation of the Scheme may be allocated or delegated, against any cost or expense (including counsel fees) or liability (including any sum paid in settlement of a claim with the approval of the Board) arising out of any act or omission to act in connection with the Scheme unless arising out of such person’s own fraud or bad faith.

 

6.                                      GRANT OF AWARDS

 

6.1                               On and subject to the rules of this Scheme and all applicable laws and other regulations,

 

(i)                                     the Board may, within the Scheme Period, determine the Selected Persons to participate in this Scheme. Unless being so selected, no person shall be entitled to participate in this Scheme. The Board has full discretion to determine, from time to time, the basis of eligibility of any Selected Person for participation in this Scheme and the grant of Awards on the basis of their contribution to the development of the Group or any other factors as the Board deems appropriate.

 

(ii)                                  the Board shall, after the selection process, inform the RSU Trustee of the name(s) of the Selected Person(s), the number of Shares underlying the Award(s) to be granted to each of the Selected Person (s), the vesting schedule of the Award(s) and other terms and conditions (if any) that the Award(s) are subject to as determined by the Board.

 

(iii)                               Subject to limitations and conditions of this Scheme, the RSU Trustee (upon receipt of the notification from the Board) or the Board shall grant to each of the Selected Persons an offer of grant of Award(s) by way of a letter (the “Grant Letter”), subject to the conditions that the Board thinks fit.

 

The Grant Letter shall, among other things, address the following matters:

 

(a)         the Selected Person’s name;

 

(b)         the manner of acceptance of the Award(s) specified in the Grant Letter;

 

(c)          the last date for acceptance by the Selected Person;

 

(d)         the number of Shares underlying the Award;

 

(e)          the vesting schedule and vesting criteria (if any); and

 

(f)           other terms and conditions that the Board may determine at its discretion.

 

The Grant Letter shall attach an acceptance notice (the “Acceptance Notice”).

 

(iv)                              If the Selected Person accepts the offer of grant of Award(s) by signing the Grant Letter, he is required to sign the Acceptance Notice and return it to the Company within the time period and in a manner prescribed in the Grant Letter. Upon the 

 

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receipt from the Selected Person of a duly executed Acceptance Notice, the Award(s) is granted to the Selected Person, who becomes a Grantee in this Scheme.

 

(v)                                 To the extent that the offer of grant of an Award is not accepted by the Selected Person within the time period or in a manner prescribed in the Grant Letter, it shall be deemed that such offer has been irrevocably declined and thus the grant has immediately lapsed.

 

(vi)                              The Board shall not grant any Award to any Selected Person in any of the following circumstances:

 

(a)         the requisite approvals for such grant from any applicable regulatory authorities have not been obtained;

 

(b)         the securities laws or regulations require that a prospectus or other offering documents be issued in respect of the grant of Award(s) or in respect of this Scheme, unless the Board determines otherwise;

 

(c)          the grant would result in a breach by the Group or any of its directors or senior management of any applicable laws, regulations or rules; or

 

(d)         the grant would result in breach of the RSU Limit (as set out in Section 4.1 above) or other rules of this Scheme.

 

(vii)                           the Grantee(s) shall not be required to bear or pay any price or fee for the grant of Award(s).

 

7.                                      VESTING OF AWARDS

 

7.1                               The Board has the sole discretion to determine the vesting schedule and vesting criteria (if any) for any grant of Award(s) to any Grantee, which may also be adjusted and re-determined by the Board from time to time.

 

7.2                               The RSU Trustee shall administer the vesting of Awards granted to each Grantee pursuant to the vesting schedule and vesting criteria (if any) determined by the Board.

 

7.3                               Upon fulfillment or waive of the vesting period and vesting criteria (if any) applicable to each of the Grantees, a vesting notice (the “Vesting Notice”) will be sent to the Grantee by the Board or by the RSU Trustee under the authorization and instruction by the Board confirming (a) the extent to which the vesting period and vesting criteria (if any) have been fulfilled or waived and (b) the number of Shares (and, if applicable, the cash or non-cash income, dividends or distributions and/or the sale proceeds of non-cash and non-scrip distributions in respect of these Shares) or the amount of cash the Grantee will receive.

 

7.4                               The Grantee may be required to execute, after receiving the Vesting Notice, certain documents set out in the Vesting Notice that the Board considers necessary (which may include, without limitation, a certification to the Group that he has complied with all the terms and conditions set out in this Scheme and the Grant Letter).

 

7.5                               Subject to the execution of documents (if any) by the Grantee set out in Section 7.4 above, the Board may decide at its sole discretion to:

 

(i)                                     direct and procure the RSU Trustee to transfer the Shares underlying the Award(s) (and, if applicable, the cash or non-cash income, dividends or distributions and/or the 

 

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sale proceeds of non-cash and non-scrip distributions in respect of these Shares) to the Grantee or its wholly owned entity; or

 

(ii)                                  pay, or direct and procure the RSU Trustee to pay, to the Grantee in cash an amount which is equivalent to the value of the Shares (and, if applicable, the cash or non-cash income, dividends or distributions and/or the sale proceeds of non-cash and non-scrip distributions in respect of these Shares) set out in Section 7.5(i) above.

 

Unless otherwise determined by the Board, in the event that the Grantee fails to execute the required documents (if any) within the time period set out in the Vesting Notice, the vested Shares will lapse.

 

8.                                      ACCELERATION OF VESTING

 

The Board has the sole discretion to determine, at any time, to accelerate the vesting of any Award granted to any Grantee for various considerations.

 

Rights on a Takeover

 

8.1                               In the event a general offer by way of takeover, merger or otherwise in a like manner (other than by way of scheme of arrangement pursuant to Section 8.2 below) is made to all the shareholders of the Company (or shareholders other than the offeror and/or any person controlled by the offeror and/or any person acting in association or concert with the offeror) and the general offer to acquire the Shares is approved and the offer becomes or is declared unconditional in all respects prior to the vesting, the Award(s) of the Grantee will vest immediately to be extent specified in a notice given by the Company.

 

Rights on a Scheme of Arrangement

 

8.2                               In the event a general offer for Shares by way of scheme of arrangement is made by any person to all the shareholders of the Company and has been approved by the necessary number of shareholders at the requisite meetings prior to the vesting, the Award(s) of the Grantee will vest immediately to be extent specified in a notice given by the Company.

 

Rights on a Compromise or Arrangement

 

8.3                               If a compromise or arrangement between the Company and its shareholders or creditors is proposed in connection with a scheme for the reconstruction of the Company or its amalgamation with any other company or companies and a notice is given by the Company to its shareholders to convene a general meeting to consider and if thought fit approve such compromise or arrangement prior to the vesting, the Award(s) of the Grantee will vest immediately to be extent specified in a notice given by the Company.

 

Rights on a Voluntarily Winding-up

 

8.4                               In the event that an effective resolution is passed during the Scheme Period for voluntarily winding-up of the Company (other than for the purposes of a reconstruction, amalgamation or scheme of arrangement as set out above) prior to the vesting, the Award(s) of the Grantee will vest immediately to be extent specified in a notice given by the Company provided that all unexercised Awards must be exercised and effected by no later than one business day before the day of the proposed general meeting to be convened for the purpose of considering, and if thought fit, approving a resolution to voluntarily wind-up the Company (or to pass written resolutions of the shareholders to the same effect).

 

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9.                                      LAPSE OF AWARDS

 

9.1                               Without prejudice to other rules under this Scheme, an unvested Award will automatically lapse immediately on the date on which:

 

(i)                                     the Grantee (being an Employee or Director of any member of the Group) ceases to be an employee, an officer or a director by reason of the termination of his employment, appointment or directorship, unless the Board Designee otherwise determines in writing that such unvested Award shall not lapse and will continue to remain valid, such termination notwithstanding;

 

(ii)                                  the Grantee (being an Employee) serves as an employee, director or officer of any other companies that are not a member of the Group, and/or, whether alone or jointly with others, carried on or be concerned or interested, directly or indirectly, whether as shareholder, employee, director, investor, consultant, adviser, partner or agent in any types of business which are in competition with or in opposition to any business of any member of the Group;

 

(iii)                               the Grantee being a Business Associate is under any contract with the Group, such contract is terminated by reason of breach of contract on the part of the Business Associate or the Grantee ceases to be a Business Associate for any other reason; or

 

(iv)                              the Grantee being a Business Associate, appears either to be unable to pay or have no reasonable prospect to be able to pay debts, or has become insolvent, or has made any arrangements or composition with his or her creditors generally, or ceases or threaten to cease to carry on its business, or is wound up, or has an administrator or liquidator being appointed for the whole or any part of its undertaking or assets; or has been convicted of any criminal offence involving integrity or honesty,

 

(v)                                 unless the Board otherwise determines, and other than in the circumstances referred to in Section 9.2 , the date the Grantee ceases to be a Eligible Person as determined by the Board for any reason;

 

(vi)                              the Grantee makes any attempt or takes any action to sell, transfer, assign, charge, mortgage, encumber, hedge or create any interest in favor of any other person over or in relation to any Shares underlying the granted Awards or any interests or benefits in relation to the Awards; and

 

(vii)                           subject to Section 8.4, the Company commences winding-up.

 

9.2                               In the event that a Grantee terminates his employment or service on account of incapacitation or death, such Grantee or his personal representative(s) shall be entitled to immediate vesting for 100% of the Awards that remain unvested as of the date of such incapacitation or death.

 

10.                               CANCELLATION OF AWARDS

 

10.1                        The Board may at its sole discretion cancel any Award that has not vested or lapsed, provided that:

 

(i)                                     the Company or its appointees pay to the Grantee an amount equal to the fair value of the Award at the date of the cancellation as determined by the Board, after consultation with an independent financial adviser appointed by the Board;

 

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(ii)                                  the Company or its appointees provides to the Grantee a replacement Award of equivalent value to the Award to be cancelled; or

 

(iii)                               the Board makes any arrangement as the Grantee may agree in order to compensate him for the cancellation of the Award.

 

11.                               RIGHTS ATTACHED TO AWARDS AND SHARES

 

11.1                        A Grantee does not have any contingent interest in any Shares underlying an Award unless and until these Shares are actually transferred to the Grantee from the RSU Trustee. Furthermore, a Grantee may not exercise any voting right in respect of the Shares underlying the Award and, unless otherwise specified by the Board in its sole discretion in the Grant Letter to the Grantee, nor do they have any rights to any cash or non-cash income, dividends or distributions and/or the sale proceeds of non-cash and non-scrip distributions from any Shares underlying the Award.

 

11.2                        Any Shares transferred to a Grantee in respect of any Award shall be subject to the provisions of the Articles and will rank pari passu with the fully paid Shares in issue on the date of the transfer or, if that date falls on a day when the register of members of the Company is closed, the first day of the reopening of the register of members, and accordingly will entitle the holders to participate in all dividends or other distributions paid or made on or after the date of transfer or, if that date falls on a day when the register of members of the Company closed, the first day of the reopening of the register of members.

 

12.                               ASSIGNMENT OF AWARDS

 

12.1                        Awards granted pursuant to this Scheme shall be personal to each Grantee and shall not be assignable or transferrable, except for (i) the transmission of an Award on the death of the Grantee to his personal representatives(s) according to the terms of this Scheme, or (B) the transfer of any Award to any trustee, acting in its capacity as such trustee, of any trust of which the Grantee is a beneficiary. Subject to the above, the Grantees are prohibited from selling, transferring, assigning, charging, mortgaging, encumbering, hedging or creating any interest in favor of any other person over or in relation to any property held by the RSU Trustee on trust for the Grantees, Awards or any interest or benefits therein.

 

13.                               REORGANIZATION OF CAPITAL STRUCTURE

 

13.1                         In the event of an alteration in the capital structure of the Company whilst any RSU has not vested by way of capitalization of profits or reserves, bonus issue, rights issue, open offer, subdivision or consolidation of shares, reduction of the share capital of the Company or otherwise howsoever in accordance with legal requirements and requirements of any stock exchange (other than an issue of Shares as consideration in respect of a transaction to which the Company or any Subsidiary is a party or in connection with any share option, restricted share or other equity incentive schemes of the Group) or in the event of any distribution of the Company’s capital assets to its shareholders on a pro rata basis (whether in cash or in specie) (other than dividends paid out of the net profits attributable to its shareholders for each financial year of the Company), such corresponding alterations (if any) shall be made to the number or nominal amount and type of Shares (or other securities) subject to the RSU so far as unvested as the Auditors or an independent financial adviser approved by the Company shall certify in writing, either generally or as regard any particular Grantee, to have in their opinion, fairly and reasonably satisfied the requirement that such adjustments give a Grantee the same proportion (or rights in respect of the same proportion) of the share capital of the Company as that to which that Grantee was previously entitled. The capacity of the Auditors or the approved independent financial adviser in this section is that of experts and not of arbitrators and their certification shall, in absence of manifest error, be final and binding on 

 

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the Company and the Grantees. The costs of the Auditors or the approved independent financial adviser shall be borne by the Company.

 

13.2                        For the avoidance of doubt, following the date on which the Shares first commence trading on a Stock Exchange the events set forth in Section 13.1 shall include any dividend or other distribution (whether in the form of cash, Shares or other securities), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase Shares or other securities of the Company, issuance of Shares pursuant to the anti-dilution provisions of securities of the Company, or other similar corporate transaction or event affecting the Shares, or of changes in applicable laws, regulations or accounting principles, in each case in respect of which an adjustment is appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Scheme.

 

14.                               DISPUTES

 

Any dispute arising in connection with this Scheme shall be referred to the determination or interpretation of the Board who shall act as experts and not as arbitrators and whose decision shall be final and binding.

 

15.                               ALTERATION OR AMENDMENT OF THIS SCHEME

 

The terms of this Scheme may be altered, amended or waived in any respect by the Board provided that such alteration, amendment or waiver shall not affect any subsisting rights of any Grantee hereunder. Any alteration, amendment or waiver to the Scheme of a material nature shall be approved by the shareholders of the Company. The Board shall have the right to determine whether any proposed alteration, amendment or waiver is material and such determination shall be conclusive.

 

16.                               TERMINATION

 

This Scheme may be terminated at any time prior to the expiry of the Scheme Period by the Board provided that such termination shall not affect any subsisting rights of any Grantee hereunder.  For the avoidance of doubt, no further Awards shall be granted after this Scheme is terminated but in all other respects the provisions of this Scheme shall remain in full force and effect.  No further Award shall be granted after such termination; however, all Awards granted prior to such termination and not vested on the date of termination shall remain valid. In such event, the Board shall notify the RSU Trustee and all Grantees of such termination and how the Shares held by the RSU Trustee on trust and other interests or benefits in relation to the outstanding Awards shall be dealt with.

 

17.                               MISCELLANEOUS

 

17.1                        The Company shall bear the costs of establishing and administering this Scheme. For the avoidance of doubt, the Company shall not be liable for any tax, duty, expense or liability that the Grantee(s) is subject to as a result of his participation in this Scheme, including any sale, purchase, vesting or transfer of the Shares hereunder.

 

17.2                        A Grantee shall be responsible for obtaining any governmental or other official consent or complying with other form(s) of legal, regulatory or judicial requirements that may be required by any country or jurisdiction in order to permit the vesting of his Award. The Company shall not be responsible for any failure by a Grantee to obtain any such consent or for any tax or other liability to which a Grantee may become subject as a result of his participation in this Scheme or the vesting of any Award.

 

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17.3                        Any notice or other communication between any of the Board or the RSU Trustee, and the Grantee(s) shall be given by prepaid post or hand delivery to the respective address as notified from time to time.

 

17.4                        Any notice or other communication shall:

 

(i)                                     if served by the Board or the RSU Trustee by post, be deemed to have been served 24 hours after it was put in the post or, if delivered by hand, be deemed to be served when delivered; and

 

(ii)                                  if served by the Grantee(s), be deemed to have been served when it is actually received by the Board or the RSU Trustee.

 

17.5                        This Scheme shall not confer, directly or indirectly, on any person any legal or equitable rights (other than those constituting the Award(s) themselves) or give rise to any cause of action at law or in equity against the company.

 

17.6                        This Scheme shall not form part of any contract of employment or for services between any member of the Group and any Grantee, and the rights and obligations of any Grantee under the terms of his office or employment or provision of service shall not be affected by his participation in this Scheme or any right he may have to participate in it and this Scheme shall afford such Grantee no additional rights to compensation or damages in consequence of the termination of such office or employment or provision of service for any reason.

 

17.7                        The grant of an Award on a particular basis in any year does not create any right to or expectation of the grant of Awards on the same basis, or at all, in any future year.  Participation in this Scheme does not imply any right to participate, or to be considered for participation in any later operation of this Scheme. Subject to any applicable legislative requirement, any Award will not be regarded as remuneration for pension purposes or for the purposes of calculating payments on termination of employment. By accepting an Award, a Grantee shall be deemed irrevocably to have waived any entitlement, by way of compensation for loss of office or otherwise howsoever, to any sum or other benefit to compensate him for or in respect of any loss of any rights or benefits under any Award then held by him or otherwise in connection with this Scheme.

 

17.8                        The Board may, from time to time, adopt such operational rules as it considers appropriate for the purposes of giving effect to or implementing this Scheme, provided that these rules do not conflict with this Scheme or contravene any of the applicable laws, regulations or rules.

 

17.9                        Each and every provision hereof shall be treated as a separate provision and shall be severally enforceable as such and in the event of any provision or provisions being or becoming unenforceable in whole or in part. To the extent that any provision or provisions are unenforceable they shall be deemed to be deleted from these rules of this Scheme, and any such deletion shall not affect the enforceability of the rules of this Scheme as remain not so deleted.

 

17.10                 This Scheme shall operate subject to the Articles and any applicable law.

 

18.                               GOVERNING LAW

 

The rules of this Scheme shall be governed by and construed in accordance with the laws of the Cayman Islands.

 

10Exhibit 4.2

 

Upon recording, return to:

Ms. Shawne M. Keenan

Sutherland Asbill & Brennan LLP

999 Peachtree Street, N.E.

Atlanta, Georgia 30309-3996

 

PURSUANT TO §44-14-35.1 OF OFFICIAL CODE OF GEORGIA ANNOTATED, THIS INSTRUMENT EMBRACES, COVERS AND CONVEYS SECURITY TITLE TO AFTER-ACQUIRED PROPERTY OF THE GRANTOR

 

	
 
    

 

OGLETHORPE POWER CORPORATION 
 (AN ELECTRIC MEMBERSHIP CORPORATION),

GRANTOR,

 

to

 

U.S.  BANK NATIONAL ASSOCIATION,

TRUSTEE

 

SEVENTY-SECOND SUPPLEMENTAL
 INDENTURE

 

Relating to the

Oglethorpe Power Corporation First Mortgage Bonds,
 Series 2016 A

 

Dated as of April 1, 2016

 

FIRST MORTGAGE OBLIGATIONS

 

	
 
    

 

NOTE TO THE CLERK OF THE SUPERIOR COURT AND TAX COMMISSIONER: BECAUSE THIS INSTRUMENT SECURES BONDS AND NOT A LONG TERM NOTE, THIS INSTRUMENT IS EXEMPT FROM THE INTANGIBLES RECORDING TAX PURSUANT TO THE RULES AND REGULATIONS OF THE STATE OF GEORGIA §560- ll-8-.14(d).

 

 

THIS SEVENTY-SECOND SUPPLEMENTAL INDENTURE, dated as of April 1, 2016, is between OGLETHORPE POWER CORPORATION (AN ELECTRIC MEMBERSHIP CORPORATION), formerly known as Oglethorpe Power Corporation (An Electric Membership Generation & Transmission Corporation), an electric membership corporation organized and existing under the laws of the State of Georgia, as grantor (the “Company”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as successor to SunTrust Bank, formerly known as SunTrust Bank, Atlanta, as trustee (in such capacity, the “Trustee”).

 

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture, dated as of March 1, 1997 (the “Original Indenture”; capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to them in the Original Indenture, as provided in Section 1.1 hereof), for the purpose of securing its Existing Obligations and providing for the authentication and delivery of Additional Obligations by the Trustee from time to time under the Original Indenture;

 

WHEREAS, the Company has heretofore executed and delivered to the Trustee seventy-one Supplemental Indentures (the Original Indenture, as heretofore, hereby and hereafter supplemented and modified, the “Indenture”), and the Original Indenture and the seventy-one Supplemental Indentures have been recorded as set forth on Schedule 1 attached hereto;

 

WHEREAS, the Board of Directors of the Company has authorized a new series of Additional Obligations to be designated the First Mortgage Bonds, Series 2016 A, due April 1, 2046 in the principal amount of Two Hundred and Fifty Million Dollars ($250,000,000) (the “Series 2016 A Bonds”);

 

WHEREAS, the Company has registered the Series 2016 A Bonds under the Securities Act of 1933, as amended (the “Securities Act”), with the Securities and Exchange Commission (the “SEC”);

 

WHEREAS, the Company has complied or will comply with all provisions required to issue Additional Obligations provided for in the Indenture;

 

WHEREAS, the Company desires to execute and deliver this Seventy-Second Supplemental Indenture, in accordance with the provisions of the Indenture, for the purpose of providing for the creation and designation of the Series 2016 A Bonds as Additional Obligations and specifying the form and provisions thereof;

 

WHEREAS, Section 12.1 of the Original Indenture provides that, without the consent of the Holders of any of the Obligations at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee may enter into Supplemental Indentures for the purposes and subject to the conditions set forth in said Section 12.1, including (i) to create a series of Additional Obligations under the Indenture and to make provisions for such series of Additional Obligations and (ii) to convey and confirm unto the Trustee any property subject or required to be subject to the lien of the Indenture; and

 

WHEREAS, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to secure under the Indenture the payment

 

 

of the principal of (and premium, if any) and interest on the Series 2016 A Bonds, to make the Series 2016 A Bonds to be issued hereunder, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, and to constitute the Indenture a valid and binding lien for the security of the Series 2016 A Bonds, in accordance with its terms, have been done and taken; and the execution and delivery of this Seventy-Second Supplemental Indenture have been in all respects duly authorized by the Company.

 

NOW, THEREFORE, THIS SEVENTY-SECOND SUPPLEMENTAL INDENTURE WITNESSES, that, to secure the payment of the principal of (and premium, if any) and interest on the Outstanding Secured Obligations, including, when authenticated and delivered, the Series 2016 A Bonds, to confirm the lien of the Indenture upon the Trust Estate, including property purchased, constructed or otherwise acquired by the Company since the date of execution of the Original Indenture, to secure performance of the covenants therein and herein contained, to declare the terms and conditions on which the Series 2016 A Bonds are secured, and in consideration of the premises thereof and hereof, the Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, and its successors and assigns in the trust created thereby and hereby, in trust, all property, rights, privileges and franchises (other than Excepted Property or Excludable Property) of the Company, whether now owned or hereafter acquired, of the character described in the Granting Clauses of the Original Indenture, wherever located, including all such property, rights, privileges and franchises acquired since the date of execution of the Original Indenture, including, without limitation, all property described on Exhibit A attached hereto, subject to all exceptions, reservations and matters of the character referred to in the Indenture, and does grant a security interest therein for the purposes expressed herein and in the Original Indenture subject in all cases to Sections 5.2 and 11.2 B of the Original Indenture and to the rights of the Company under the Original Indenture, including the rights set forth in Article V thereof; but expressly excepting and excluding from the lien and operation of the Indenture all properties of the character specifically excepted as “Excepted Property” or “Excludable Property” in the Original Indenture to the extent contemplated thereby.

 

PROVIDED, HOWEVER, that if, upon the occurrence of an Event of Default, the Trustee, or any separate trustee or co-trustee appointed under Section 9.14 of the Original Indenture or any receiver appointed pursuant to statutory provision or order of court, shall have entered into possession of all or substantially all of the Trust Estate, all the Excepted Property described or referred to in Paragraphs A through H, inclusive, of “Excepted Property” in the Original Indenture then owned or thereafter acquired by the Company, shall immediately, and, in the case of any Excepted Property described or referred to in Paragraphs I, J, L, N and P of “Excepted Property” in the Original Indenture (excluding the property described in Section 2 of Exhibit B in the Original Indenture), upon demand of the Trustee or such other trustee or receiver, become subject to the lien of the Indenture to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the same time likewise take possession thereof, and whenever all Events of Default shall have been cured and the possession of all or substantially all of the Trust Estate shall have been restored to the Company, such Excepted Property shall again be excepted and excluded from the lien of the Indenture to the extent and otherwise as hereinabove set forth and as set forth in the Indenture.

 

2

 

The Company may, however, pursuant to the Granting Clause Third of the Original Indenture, subject to the lien of the Indenture any Excepted Property or Excludable Property, whereupon the same shall cease to be Excepted Property or Excludable Property.

 

TO HAVE AND TO HOLD all such property, rights, privileges and franchises hereby and hereafter (by a Supplemental Indenture or otherwise) granted, bargained, sold, alienated, remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated in the Indenture not to be deemed part of the Trust Estate) being part of the Trust Estate), unto the Trustee, and its successors and assigns in the trust herein created by the Indenture, forever.

 

SUBJECT, HOWEVER, to (i) Permitted Exceptions and (ii) to the extent permitted by Section 13.6 of the Original Indenture as to property hereafter acquired (a) any duly recorded or perfected prior mortgage or other lien that may exist thereon at the date of the acquisition thereof by the Company and (b) purchase money mortgages, other purchase money liens, chattel mortgages, conditional sales agreements or other title retention agreements created by the Company at the time of acquisition thereof.

 

BUT IN TRUST, NEVERTHELESS, with power of sale, for the equal and proportionate benefit and security of the Holders from time to time of all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their terms.

 

UPON CONDITION that, until the happening of an Event of Default and subject to the provisions of Article V of the Original Indenture, and not in limitation of the rights elsewhere provided in the Original Indenture, including the rights set forth in Article V of the Original Indenture, the Company shall be permitted to (i) possess and use the Trust Estate, except cash, securities, Designated Qualifying Securities and other personal property deposited, or required to be deposited, with the Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues, profits, revenues and other income, products and proceeds of the Trust Estate.

 

THE INDENTURE, INCLUDING THIS SEVENTY-SECOND SUPPLEMENTAL INDENTURE, is intended to operate and is to be construed as a deed passing title to the Trust Estate and is made under the provisions of the laws of the State of Georgia relating to deeds to secure debt, and not as a mortgage or deed of trust, and is given to secure the Outstanding Secured Obligations.  Should the indebtedness secured by the Indenture be paid according to the tenor and effect thereof when the same shall become due and payable and should the Company perform all covenants contained in the Indenture in a timely manner, then the Indenture shall be canceled and surrendered.

 

AND IT IS HEREBY COVENANTED AND DECLARED that the Series 2016 A Bonds are to be authenticated and delivered and the Trust Estate is to be held and applied by the Trustee, subject to the covenants, conditions and trusts set forth herein and in the Indenture, and

 

3

 

the Company does hereby covenant and agree to and with the Trustee, for the equal and proportionate benefit of all Holders of the Outstanding Secured Obligations, as follows:

 

ARTICLE I

 

DEFINITIONS

 

Section 1.1                                    Definitions.

 

All words and phrases defined in Article I of the Original Indenture and used in this Seventy-Second Supplemental Indenture shall have the same meanings ascribed to them in the Original Indenture, as such terms may have been or may be amended or modified from time to time pursuant to the Indenture, except in cases where the context clearly indicates otherwise.  In addition, the following terms have the following meanings in this Seventy-Second Supplemental Indenture unless the context clearly indicates otherwise:

 

“Business Day” means each Monday, Tuesday, Wednesday, Thursday or Friday which is not a day on which banking institutions in New York or Georgia are generally authorized or obligated by law or executive order to close.

 

“Closing Date” means April 21, 2016.

 

“Interest Payment Date” means April 1 and October 1 of each year, commencing on October 1, 2016.  If the Interest Payment Date does not fall on a Business Day, such payment may be made on the next succeeding Business Day.

 

“Record Date” means the 15th day (whether or not a Business Day) of the calendar month immediately preceding such Interest Payment Date.

 

“Securities Depository” means The Depository Trust Company and its successors and assigns or any other securities depository selected by the Company which agrees to follow the procedures required to be followed by such securities depository in connection with the Series 2016 A Bonds.

 

ARTICLE II

 

THE SERIES 2016 A BONDS AND
 CERTAIN PROVISIONS RELATING THERETO

 

Section 2.1                                    Terms of the Series 2016 A Bonds.

 

There shall be created and established a series of Additional Obligations known as and entitled the “First Mortgage Bonds, Series 2016 A” (which series is referred to herein as the Series 2016 A Bonds).

 

The aggregate principal amount of the Series 2016 A Bonds which may be authenticated, delivered and Outstanding at any one time is limited to Two Hundred and Fifty Million Dollars ($250,000,000).  The Series 2016 A Bonds shall consist of bonds in an aggregate principal

 

4

 

amount of $250,000,000, due April 1, 2046.

 

The Series 2016 A Bonds shall bear interest from their date of issuance, payable semiannually in arrears on each Interest Payment Date.  The Series 2016 A Bonds shall bear interest at the annual rate of 4.25 %.

 

The principal and the Redemption Price of, and interest on, the Series 2016 A Bonds shall be paid to the Person in whose name that Obligation (or one or more Predecessor Obligations) is registered at the close of business on the Record Date applicable to such Interest Payment Date or Redemption Date.  Interest on the Series 2016 A Bonds shall be computed on the basis of a 360-day year of twelve 30-day months.  The Series 2016 A Bonds shall be dated the date of their authentication.

 

The Series 2016 A Bonds shall be issued as fully registered global bonds without coupons and in denominations of $1,000 or any integral multiple thereof.  The Series 2016 A Bonds shall be registered in the name of Cede & Co., as nominee of the Securities Depository, pursuant to the Securities Depository’s Book-Entry System.  When the Series 2016 A Bonds are held in the Book-Entry System, purchases of beneficial interests in the Series 2016 A Bonds shall be made in book-entry form, without certificates.  If at any time the Book-Entry System is discontinued for the Series 2016 A Bonds, the Series 2016 A Bonds shall be exchangeable for other fully registered certificated Series 2016 A Bonds of like tenor and of an equal aggregate principal amount, in authorized denominations.  The Trustee may impose a charge sufficient to reimburse the Company or the Trustee for any tax, fee or other governmental charge required to be paid with respect to such exchange or any transfer of a Series 2016 A Bond.  The cost, if any, of preparing each new Series 2016 A Bond issued upon such exchange or transfer, and any other expenses of the Company or the Trustee incurred in connection therewith, shall be paid by the person requesting such exchange or transfer.

 

Interest on the Series 2016 A Bonds shall be payable by check mailed to the registered owners thereof.  However, interest on the Series 2016 A Bonds shall be paid to any owner of $1,000,000 or more in aggregate principal amount of the Series 2016 A Bonds by wire transfer to a wire transfer address within the continental United States upon the written request of such owner received by the Paying Agent not less than five days prior to the Record Date.  As long as the Series 2016 A Bonds are registered in the name of Cede & Co., as nominee of the Securities Depository, such payments shall be made directly to the Securities Depository.  The Trustee is hereby designated and agrees to act as the initial Paying Agent for the Series 2016 A Bonds.

 

Section 2.2                                    Optional Redemption.

 

(a)                                 The Company may redeem the Series 2016 A Bonds, in whole or in part, on any date or from time to time prior to their maturity, at its option.

 

(i)                                     If the Redemption Date is before October 1, 2045, the Redemption Price for the Series 2016 A Bonds will be equal to the greater of:

 

(1)                                 100% of the principal amount of the Series 2016 A Bonds being redeemed; and

 

5

 

(2)                                 the sum of the present values of the remaining principal and interest payments on the Series 2016 A Bonds being redeemed that would be due if such Series 2016 A Bonds matured on October 1, 2045 (excluding interest accrued and unpaid through the Redemption Date), discounted on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at a rate equal to the sum of (x) the yield to maturity, determined on the third Business Day prior to the Redemption Date, of a U.S.  Treasury security having a life equal to the remaining average life (assuming, for this purpose, that the Series 2016 A Bonds matured on October 1, 2045) of the maturity of Series 2016 A Bonds being redeemed and trading in the secondary market at the price closest to par, and (y) 30 basis points,

 

plus in each case accrued and unpaid interest thereon to but excluding the Redemption Date.

 

(ii)                                  If the Redemption Date is on or after October 1, 2045, the Redemption Price for the Series 2016 A Bonds will be 100% of the principal amount of the Series 2016 A Bonds being redeemed plus accrued and unpaid interest thereon to but excluding the Redemption Date.

 

(b)                                 If there is no U.S. Treasury security having a life equal to the remaining average life (assuming, for this purpose, that the Series 2016 A Bonds matured on October 1, 2045) of the Series 2016 A Bonds being redeemed, the discount rate will be calculated using a yield to maturity determined on a straight-line basis (rounding to the nearest calendar month, if necessary) from the average yield to maturity, determined on the third Business Day prior to the Redemption Date, of two U.S.  Treasury securities having lives most closely corresponding to the remaining average life (assuming, for this purpose, that the Series 2016 A Bonds matured on October 1, 2045) of the Series 2016 A Bonds being redeemed and trading in the secondary market at the price closest to par.

 

(c)                                  Notice of redemption shall be given by first class mail, postage prepaid, mailed not less than 30 and not more than 60 days prior to the Redemption Date to the registered address of each Holder of Series 2016 A Bonds being redeemed, except as otherwise required by the procedures of the Securities Depository.  Notice of redemption of the Series 2016 A Bonds shall be given by the Company or at the Company’s request, by the Trustee in the name and at the expense of the Company.

 

(d)                                 If less than all of the Outstanding Series 2016 A Bonds are to be redeemed, the Series 2016 A Bonds to be redeemed will be selected by the Trustee in any method it deems fair and appropriate, and the portion of the Series 2016 A Bonds not so redeemed will be in integral multiples of $1,000.

 

(e)                                  If, at the time the notice of optional redemption of the Series 2016 A Bonds is given, the Company has not deposited sufficient funds with the Trustee to pay the full Redemption Price of the Series 2016 A Bonds to be redeemed, the notice of optional redemption will so state and will further state that the Series 2016 A Bonds will remain Outstanding as though no redemption notice had been given unless the Company provides, or causes to be provided, to the Trustee, by 2:00 p.m.  New York City Time on the Redemption Date, funds sufficient to pay the full Redemption Price of the Series 2016 A Bonds to be redeemed.  The failure of the Company to deposit sufficient funds with the Trustee to effect the redemption will

 

6

 

not constitute a payment or other default by the Company under the Indenture and the Company will not be liable to any Holder of those Series 2016 A Bonds as a result of the failed redemption.  If the Company has deposited funds with the Trustee sufficient to pay the full Redemption Price of the Series 2016 A Bonds to be redeemed at the time the notice of optional redemption is given, then the Company is obligated to redeem the Series 2016 A Bonds as provided in that notice.

 

Section 2.3                                    Form of the Series 2016 A Bonds.  The Series 2016 A Bonds and the Trustee’s certificate of authentication for the Series 2016 A Bonds shall be substantially in the form set forth in Exhibit B attached hereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by the Indenture.

 

ARTICLE III

 

MISCELLANEOUS

 

Section 3.1                                    Supplemental Indenture.  This Seventy-Second Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Original Indenture, and shall form a part thereof, and the Original Indenture, as heretofore supplemented and modified and as hereby supplemented and modified, is hereby confirmed.  Except to the extent inconsistent with the express terms of this Seventy-Second Supplemental Indenture or the Series 2016 A Bonds, all of the provisions, terms, covenants and conditions of the Indenture generally applicable to the payment or redemption of all Obligations shall be applicable to the Series 2016 A Bonds to the same extent as if specifically set forth herein.  All references herein to Sections, Articles, definitions or other provisions of the Original Indenture shall be to such Sections, Articles, definitions or other provisions as they may be amended or modified from time to time pursuant to the Indenture.

 

Section 3.2                                    Recitals.  All recitals in this Seventy-Second Supplemental Indenture are made by the Company only and not by the Trustee; and all of the provisions contained in the Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof as fully and with like effect as if set forth herein in full.

 

Section 3.3                                    Successors and Assigns.  Whenever in this Seventy-Second Supplemental Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Original Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Seventy-Second Supplemental Indenture contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

 

Section 3.4                                    No Rights, Remedies, Etc.  Nothing in this Seventy-Second Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Seventy-Second Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Seventy-Second

 

7

 

Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto and of the Holders of Outstanding Secured Obligations.

 

Section 3.5                                    Counterparts.  This Seventy-Second Supplemental Indenture may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

 

Section 3.6                                    Security Agreement; Mailing Address.  To the extent permitted by applicable law, this Seventy-Second Supplemental Indenture shall be deemed to be a Security Agreement and Financing Statement whereby the Company grants to the Trustee a security interest in all of the Trust Estate that is personal property or fixtures under the Uniform Commercial Code, as adopted or hereafter adopted in one or more of the states in which any part of the properties of the Company are situated.

 

The mailing address of the Company, as debtor, is:

 

Oglethorpe Power Corporation

(An Electric Membership Corporation)

2100 East Exchange Place

Tucker, Georgia 30084-5336

 

and the mailing address of the Trustee, as secured party, is:

 

U.S. Bank National Association

Attention: Corporate Trust Services

1349 West Peachtree Street, NW

Suite 1050, Two Midtown Plaza

Atlanta, Georgia 30309

 

[Signatures Begin on Next Page]

 

8

 

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

 

	
Company:
    	
OGLETHORPE POWER   CORPORATION (AN ELECTRIC MEMBERSHIP CORPORATION), an electric membership corporation organized under   the laws of the State of Georgia
    
	
 
    	
 
    
	
 
    	
By: 
    	
 
    
	
 
    	
 
    	
Elizabeth B.   Higgins 
    
	
 
    	
 
    	
Executive Vice   President and 
    
	
 
    	
 
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
Signed, sealed and   delivered by the 
    	
Attest: 
    	
 
    
	
Company in the presence   of: 
    	
 
    	
Patricia N.   Nash
   Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
[CORPORATE   SEAL]
    
	
 
    	
 
    	
 
    	
 
    
	
Witness 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Notary Public
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
(Notarial Seal) 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
My commission expires:
    	
 
    	
 
    	
 
    
						

 

[Signatures Continue on Next Page]

 

 

[Signatures Continued from Previous Page]

 

	
Trustee:
    	
U.S. BANK NATIONAL   ASSOCIATION, a national   banking association
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized   Agent
    
	
 
    	
 
    	
 
    
	
Signed and delivered by   the Trustee in the presence of:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Notary Public
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
(Notarial Seal)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
My commission expires:
    	
 
    	
 
    	
 
    
					

 

 

Exhibit A

 

All property of the Company (other than Excepted Property and Excludable Property) in the Counties of Appling, Burke, Carroll, Coweta, DeKalb, Floyd, Hart, Heard, Monroe, Murray, Talbot, Toombs, Walton, Warren, Washington and Whitfield, State of Georgia, whether now owned or hereafter acquired, and including the following described property:

 

1.                                      1260 Gratis Road — Walton County

 

All that tract or parcel of land lying and being in Land Lot 111, 3rd District, Town GMD 419, Walton County, Georgia, containing 5.31 Acres, as shown on a plat of survey prepared by Kenneth C. Sims, Registered Professional Land Surveyor No. 1783, dated May 11, 1983, revised February 28, 1984, and recorded in Plat Book 32, Page 108, Clerk’s Office, Walton Superior Court.  Reference is hereby made to said plat of survey, and the same is incorporated herein for a more complete description of the property conveyed.

 

According to such plat of survey, the tract herein is more particularly described as follows: Beginning at an iron pin located on the westerly right of way of Monroe-Gratis Road (shown as being 80 feet in width) situated 1936 feet northerly along such right of way from its intersection with the centerline of Pipe Line Road; running thence North 88 degrees 5 minutes West 1697.0 feet to an iron pin; running thence North 58 degrees 00 minutes East 20.0 feet to an iron pin; running thence North 83 degrees 24 minutes East 1698.5 feet to an iron pin located on the westerly right of way of Monroe-Gratis Road; running thence along such right of way South 01 degrees 55 minutes West 2624.4 feet to the point of beginning.

 

This is the same property conveyed to Henry Arnold by Warranty Deed from T. Ed Lindsey and Murphy M. Wright, Jr., dated January 31, 1977, recorded in Deed Book 133, Page 628, Clerk’s Office, Walton County Superior Court; also see deed from Henry Arnold to Charlotte Arnold dated March 1, 1984, recorded in Deed Book 193, Page 514, said Clerk’s Office.

 

2.                                      440 Midway Road — Coweta County

 

All that tract or parcel of land lying and being Land Lot 205 of the 3rd Land District, Coweta County, Georgia, consisting of 1.60 acres and identified as Lot 1, Midway Farms as shown by plat of survey for Midway Farms made by Randy McLain, R.L.S., as recorded in Plat Book 87, Page 23, in the Office of the Clerk of Coweta County, Georgia, to which plat reference is hereby made for a more particular and accurate description of the property conveyed herein.

 

3.                                      2022 Joe Stephens Road — Heard County

 

All that tract or parcel of land lying and being in Land Lot 205 of the 3rd District of Heard County, Georgia, and being more particularly described as follows:

 

Begin at a point on the North right-of-way line of Midway paved public road, said point being where the North right-of-way line of said Midway Road intersects the East side of a dirt public road; thence running East along the North right-of-way of said Midway Road 279 feet to a point; thence running North 100 feet to a point; thence running in a Southwesterly direction 243 feet to

 

A-1

 

the point of beginning.

 

Said tract or parcel of land is in a triangular shape and has located hereon a four room frame house.  This being the same property deeded from Charles W. and Joyce C. Worley to Roger S. Pendergrass recorded 20 October, 1988 at Deed Book 119, Page 7, Heard County Records.

 

The street address of property is 2022 Joe Stephens Road, Franklin, Georgia 30217.

 

4.                                      479 Midway Road — Coweta County

 

All that tract or parcel of land lying and being in Land Lot 205 of the 3rd Land District of Coweta County, Georgia and being more particularly described as follows: Begin at a point on the north side of the public road leading past the Old Carnes Homeplace, which road runs east and west across the north part of Land Lot 205 and which point is 528 feet west of where the north side of said road intersects the east line of Land Lot 205 and is where property joins property now or formerly owned by M.C. Geter and from said point run North along the east line of Geter 150 feet; thence easterly parallel with the north side of said road 100 feet; thence southerly 150 feet to the north side of said road 100 to beginning point; This being a lot out of property shown as Hardegree Property own plat of property of International Paper Company recorded in Plat Book 6, Page 119, Coweta County, Georgia records.  Parcel ID No. 004 3205 002.

 

5.                                      Heard and Coweta Counties

 

TRACT 1

 

ALL THAT TRACT OR PARCEL OF LAND LYING AND BEING IN LAND LOT 205 OF THE 3RD LAND DISTRICT, HEARD COUNTY, GEORGIA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

 

COMMENCE AT A 1/2” REBAR FOUND MARKING THE INTERSECTION OF THE SOUTHERLY RIGHT-OF-WAY LINE OF JOE STEPHENS ROAD (80’ R/W), AND THE WESTERLY LINE OF LAND LOT 205, SAID REBAR HAVING GEORGIA STATE PLANE, WEST ZONE COORDINATES OF N1224249.03, E2043321.54, AND BEING THE POINT OF REFERENCE AND THE POINT OF BEGINNING; THENCE ALONG SAID SOUTHERLY RIGHT-OF-WAY LINE OF JOE STEPHENS ROAD (80’ R/W), ALONG THE ARC OF A CURVE TO THE RIGHT, SAID CURVE HAVING A CHORD BEARING OF S82°09’30”E, RADIUS OF 2,398.58’, CHORD DISTANCE OF 160.57’ AND ARC LENGTH OF 160.60’ TO A 1/2” REBAR WITH CAP SET; THENCE CONTINUING ALONG SAID RIGHT OF WAY, S79°54’26”E 881.90’ TO A 1/2” REBAR WITH CAP SET ON THE WESTERLY RIGHT OF WAY OF JOE STEPHENS ROAD (60’ R/W); THENCE CONTINUING ALONG SAID WESTERLY RIGHT-OF-WAY LINE, S07°27’16”W 991.09’ TO A 1/2” REBAR FOUND; THENCE DEPARTING SAID WESTERLY RIGHT-OF-WAY LINE, N88°37’48”W 931.20’ TO A T-POST FOUND ON THE WESTERLY LINE OF LAND LOT 205; THENCE ALONG SAID WESTERLY LAND LOT LINE, N01°37’20”E 1137.36’ TO THE POINT OF BEGINNING.

 

A-2

 

SAID TRACT CONTAINS 1,048,598 SQUARE FEET OR 24.07 ACRES OF LAND, MORE OR LESS.

 

TRACT 2

 

ALL THAT TRACT OR PARCEL OF LAND LYING AND BEING IN LAND LOT 205 OF THE 3RD LAND DISTRICT, COWETA COUNTY, GEORGIA, IN LAND LOT 205 OF THE 4TH LAND DISTRICT, COWETA COUNTY, GEORGIA AND IN LAND LOT 148 OF THE 4TH LAND DISTRICT, HEARD COUNTY, GEORGIA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

 

COMMENCE AT A 1/2” REBAR FOUND MARKING THE INTERSECTION OF THE SOUTHERLY RIGHT-OF-WAY LINE OF JOE STEPHENS ROAD (80’ R/W), AND THE WESTERLY LINE OF LAND LOT 205, SAID REBAR HAVING GEORGIA STATE PLANE, WEST ZONE COORDINATES OF N1224249.03, E2043321.54, AND BEING THE POINT OF REFERENC; THENCE ALONG A TIE-LINE, N01°37’20”E 62.04’ TO A 1/2” REBAR WITH CAP SET ON THE NORTHERLY RIGHT-OF-WAY LINE OF JOE STEPHENS ROAD (80’ R/W), SAID REBAR BEING THE POINT OF BEGINNING; THENCE DEPARTING SAID NORTHERLY RIGHT-OF-WAY LINE, N00°24’03”E 909.41’ TO A 1/2” REBAR FOUND; THENCE S87°56’19”E 305.24’ TO A 1/2” REBAR FOUND; THENCE S87°56’19”E 90.98’ TO A 1/2” REBAR FOUND; THENCE S87°56’19”E 10.54’ TO A POINT AT THE CENTERLINE OF AN UNNAMED CREEK; THENCE ALONG THE CENTERLINE OF SAID CREEK THE FOLLOWING COURSES AND DISTANCES, S70°02’26”E 28.11’, S32°52’25”E 42.46’, S50°49’56”E 28.36’, S73°41’38”E 22.83’, S04°15’51”W 20.80’, S43°47’07”E 26.22’, S11°56’18”E 14.92’, S76°38’56”E 15.33’, S26°43’24”E 32.37’, S31°00’22”E 16.50’, S16°12’33”E 10.25’, S65°10’29”E 6.42’, S88°30’11”E 28.60’, N75°25’31”E 32.87’, S73°27’58”E 12.57’, S42°07’28” 33.75’, S53°49’38”E 40.30’, S66°18’05”E 27.85’, S56°52’34”E 6.63’, N79°40’35”E 21.33’, S20°15’41”E 11.42’, S38°27’08”W 10.64’, S53°39’17”E 43.17’, S74°22’56”E 18.56’, S54°40’10”E 14.88’, S86°43’41”E 17.21’, S45°59’46”E 24.76’, S66°59’09”E 25.25, S17°55’43”E 18.99’, S53°06’52”E 14.09’, S37°13’03”E 26.38’, S80°38’08”E 11.49’, S62°09’04”E 27.04’, N51°10’44”E 21.57, S34°26’46”E 26.14’, S17°14’09”E 16.84’, S09°35’14”W 15.11’, S47°18’26”E 22.86’, S25°17’42”E 25.63’, S60°24’24”E 20.32’, S52°07’43”E 34.96’, S57°32’48”E 47.93’, S42°15’19”E 14.42’, N75°53’37”E 29.09’, S56°58’18”E 40.78’, S60°20’09”E 31.34’, S60°18’23”E 35.00’, S71°54’11”E 32.91’, N71°53’05”E 27.09’, S70°34’17”E 18.97’, S73°11’20”E 33.51’, N76°23’52”E 14.57’, S56°18’14”E 35.16’, S44°03’19”E 17.14’, N84°04’21”E 20.87’, N85°08’18”E 23.82’, N66°28’45”E 20.93’, S58°28’20”E 33.20’, N59°49’14”E 14.16’ TO A POINT; THENCE DEPARTING SAID CENTERLINE OF UNNAMED CREEK, S00°38’24”W 81.01’ TO A 6” PAINTED ROCK FOUND; THENCE S89°40’32”E 1,432.53’ TO A 5/8” REBAR WITH GEORGIA KRAFT CAP FOUND; THENCE S00°58’43”W 200.90’ TO A 5/8” REBAR WITH GEORGIA KRAFT CAP FOUND; THENCE S85°41’00”E 117.32’ TO A 5/8” REBAR WITH GEORGIA KRAFT CAP FOUND ON THE LAND DISTRICT LINE DIVIDING THE 3RD AND 4TH LAND DISTRICTS AND BEING AT THE NORTHEAST CORNER OF LAND LOT 205; THENCE ALONG THE WESTERN LINE OF SAID LAND LOT 205, S01°52’55”W 225.44’ TO A 1/2” OPEN TOP PIPE FOUND; THENCE S88°17’36”W 297.90’ TO A 1/2” REBAR FOUND; THENCE S88°17’36”W 229.67’ TO A 1/2” REBAR FOUND; THENCE S88°17’36”W 125.03’ TO A 1” AXLE FOUND; THENCE S88°17’36”W 7.22’ TO A 1/2”

 

A-3

 

REBAR WITH CAP SET; THENCE S02°00’44”W 318.61’ TO A 1/2” REBAR WITH CAP SET ON THE NORTHERLY RIGHT-OF-WAY OF MIDWAY ROAD (80’ R/W); THENCE ALONG SAID NORTHERLY RIGHT-OF-WAY ALONG THE ARC OF A CURVE TO THE RIGHT, SAID CURVE HAVING A CHORD BEARING OF N63°09’20”W, RADIUS OF 586.95’, CHORD DISTANCE OF 388.65’ AND ARC LENGTH OF 396.12’ TO A 1” OPEN TOP PIPE FOUND; THENCE DEPARTING SAID NORTHERLY RIGHT-OF-WAY, N00°26’33”E 382.05’ TO A 1/2” REBAR FOUND ON THE LAND DISTRICT LINE DIVIDING THE 3RD AND 4TH LAND DISTRICTS; THENCE ALONG SAID LAND DISTRICT LINE, N89°30’56”W 299.59’ TO A 1” OPEN TOP PIPE FOUND; THENCE N89°30’56”W 1,038.92’ TO A 1/2” REBAR FOUND; THENCE N89°30’56”W 525.93’ TO A 1/2” OPEN TOP PIPE FOUND ON THE NORTHERLY RIGHT-OF-WAY OF JOE STEPHENS ROAD (80’ R/W); THENCE ALONG SAID NORTHERLY RIGHT-OF-WAY ALONG THE ARC OF A CURVE TO THE LEFT, SAID CURVE HAVING A CHORD BEARING OF N82°32’57”W, RADIUS OF 2,477.96’, CHORD DISTANCE OF 144.78’ AND ARC LENGTH OF 144.80’ TO THE POINT OF BEGINNING.

 

SAID TRACT CONTAINS 1,594,608 SQUARE FEET OR 36.61 ACRES, MORE OR LESS.

 

A-4

 

Exhibit B

 

FORM OF SERIES 2016 A BOND
 AND

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO OGLETHORPE POWER CORPORATION (AN ELECTRIC MEMBERSHIP CORPORATION) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.  OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.  OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

B-1

 

	
No. R-1
    	
$250,000,000
    

 

OGLETHORPE POWER CORPORATION, FIRST MORTGAGE BOND,

SERIES 2016A, DUE 2046

 

REGISTERED OWNER: CEDE & CO.

PRINCIPAL AMOUNT: TWO HUNDRED AND FIFTY MILLION DOLLARS

ISSUANCE DATE: April 21, 2016

CUSIP NO.: 677050AL0

 

Oglethorpe Power Corporation (An Electric Membership Corporation), formerly known as Oglethorpe Power Corporation (An Electric Membership Generation & Transmission Corporation), an electric membership corporation existing under the laws of the State of Georgia (together with any successors and assigns, the “Company”), for value received hereby promises to pay to the registered owner named above or registered assigns, on April 1, 2046 upon the presentation and surrender of this First Mortgage Bond, 4.25% Series 2016 A due April 1, 2046 (this “Series 2016 A Bond”), the principal amount (upon original issuance) of $250,000,000, issued under the Indenture, dated as of March 1, 1997 (the “Original Indenture”), as heretofore supplemented and as supplemented by the Seventy-Second Supplemental Indenture (the “Seventy-Second Supplemental Indenture”), between the Company, as grantor, and U.S.  Bank National Association, as successor to SunTrust Bank, formerly known as SunTrust Bank, Atlanta, as trustee (the “Trustee”) (the Original Indenture, as supplemented, the “Indenture”).

 

The Company shall pay the principal sum set forth above and pay interest on said principal sum from the date hereof until payment of said principal sum has been made or duly provided for, semi-annually at the interest rate of 4.25%.

 

The principal of, and interest on, this Series 2016 A Bond are payable at the principal corporate trust office of the Paying Agent, or of its successor as Paying Agent, or, at the option of the owner of this Series 2016 A Bond, at the principal office of any Paying Agent appointed in accordance with the Indenture; provided, however, that, subject to the next succeeding paragraph, interest may be payable, at the option of the Paying Agent, by check or draft drawn upon the Paying Agent and mailed to the registered address of the registered owner of this Series 2016 A Bond as of the close of business on the applicable Record Date (as defined in the Seventy-Second Supplemental Indenture), or, at the written request of the registered owner of Series 2016 A Bonds in an aggregate principal amount greater than or equal to $1,000,000 delivered to the Paying Agent at least five days prior to the Record Date next preceding such payment date, by wire transfer to a wire transfer address in the continental United States as set forth in such request.  Payment of the principal of and interest on this Series 2016 A Bond shall be in any coin or currency of the United States of America as, at the respective times of payment, shall be legal tender for the payment of public and private debts.

 

Notwithstanding any other provision of this Series 2016 A Bond to the contrary, so long as this Series 2016 A Bond shall be registered on books of the Company kept by the Obligation Registrar (as defined in the Original Indenture) in the name of The Depository Trust Company, a New York Corporation (“DTC”), or its nominee, the provisions of the Indenture governing the

 

B-2

 

Book-Entry System (as defined in the Original Indenture) shall govern the manner of payment of the principal of, and interest on, this Series 2016 A Bond.

 

This Series 2016 A Bond is equally and ratably secured, to the extent provided in the Indenture, by the Trust Estate, except and excluding the Excepted Property and the Excludable Property.

 

Reference is hereby made to the Indenture, a copy of which is on file with the Trustee, for the provisions, among others, with respect to the nature and extent of the rights, duties and obligations of the Company, the Trustee and the owner of this Series 2016 A Bond, the terms upon which this Series 2016 A Bond is issued and secured, and the modification or amendment of the Indenture, to all of which the registered owner of this Series 2016 A Bond assents by the acceptance of this Series 2016 A Bond.

 

This Series 2016 A Bond is transferable, as provided in the Indenture, only upon the registration books of the Company maintained by the Obligation Registrar, which shall be the Trustee, kept at its principal office, upon presentation at said office of this Series 2016 A Bond with the written request of the registered owner hereof or his attorney duly authorized in writing, and a written instrument of transfer satisfactory to the Obligation Registrar duly executed by the registered owner or his duly authorized attorney.  The Obligation Registrar shall not be obliged to (i) make any exchange or transfer of this Series 2016 A Bond during the period beginning at the opening of business fifteen days next preceding the date of the mailing of the notice of redemption of this Series 2016 A Bond or (ii) register the transfer of or exchange of any Series 2016 A Bond so selected for redemption in whole or in part, except the unredeemed portion of a Series 2016 A Bond being redeemed in part.

 

This Series 2016 A Bond is issuable in the form of a fully registered global bond without coupons in the denomination of $1,000 each or any integral multiple thereof.  Upon payment of any required tax or other governmental charge and, subject to such conditions, this Series 2016 A Bond, upon the surrender thereof at the principal office of the Obligation Registrar, with a written instrument of transfer satisfactory to the Obligation Registrar, duly executed by the registered owner or his duly authorized attorney, may, at the option of the registered owner thereof, be exchanged for an equal aggregate principal amount of Series 2016 A Bonds of the same interest rate and in any other authorized denominations.

 

This Series 2016 A Bond shall bear interest from, and including, the date hereof to, but excluding, April 1, 2046.  Interest shall be payable in arrears on April 1 and October 1 of each year prior to the maturity date of this Series 2016 A Bond, commencing on October 1, 2016.  Interest on this Series 2016 A Bond shall be computed on the basis of a 360-day year of twelve 30-day months.

 

Optional Redemption: The Company may redeem this Series 2016 A Bond, in whole or in part, on any date or from time to time prior to its maturity, at its option.

 

If the Redemption Date is before October 1, 2045, the Redemption Price for this Series 2016 A Bond will be equal to the greater of:

 

(i)                                     100% of the principal amount of the portion of this Series 2016 A Bond being

 

B-3

 

redeemed; and

 

(ii)                                  the sum of the present values of the remaining principal and interest payments on the portion of this Series 2016 A Bond being redeemed that would be due if such portion of this Series 2016 A Bond matured on October 1, 2045 (excluding interest accrued and unpaid through the Redemption Date), discounted on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at a rate equal to the sum of (i) the yield to maturity, determined on the third Business Day prior to the Redemption Date, of a U.S.  Treasury security having a life equal to the remaining average life (assuming, for this purpose, that the Series 2016 A Bonds matured on October 1, 2045) of the maturity of the portion of Series 2016 A Bonds being redeemed and trading in the secondary market at the price closest to par, and (ii) 30 basis points,

 

plus in each case accrued and unpaid interest thereon to but excluding the Redemption Date.

 

If the Redemption Date is on or after October 1, 2045, the Redemption Price for this Series 2016 A Bond will be 100% of the principal amount of this Series 2016 A Bond being redeemed plus accrued and unpaid interest thereon to but excluding the Redemption Date.

 

If there is no U.S. Treasury security having a life equal to the remaining average life (assuming, for this purpose, that the Series 2016 A Bonds matured on October 1, 2045) of the portion of this Series 2016 A Bond being redeemed, the discount rate will be calculated using a yield to maturity determined on a straight-line basis (rounding to the nearest calendar month, if necessary) from the average yield to maturity, determined on the third Business Day prior to the Redemption Date, of two U.S. Treasury securities having lives most closely corresponding to the remaining average life (assuming, for this purpose, that the Series 2016 A Bonds matured on October 1, 2045) of the portion of the Series 2016 A Bonds being redeemed and trading in the secondary market at the price closest to par.

 

If less than all of this Series 2016 A Bond is to be redeemed, the portion of this Series 2016 A Bond to be redeemed will be selected by the Trustee in any method it deems fair and appropriate, and the portion of this Series 2015 A Bond not so redeemed will be in integral multiples of $1,000.

 

The registered owner of this Series 2016 A Bond shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture.

 

All acts, conditions and things required by the Constitution and statutes of the State of Georgia, the governing rules and procedures of the Company and the Indenture to exist, to have happened and to have been performed precedent to and in the issuance of this Series 2016 A Bond, do exist, have happened and have been performed.

 

No covenant or agreement contained in this Series 2016 A Bond, the Indenture or the Seventy-Second Supplemental Indenture shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his or her individual capacity, and no officer of the Company executing this Series 2016 A Bond shall be liable personally on this

 

B-4

 

Series 2016 A Bond or be subject to any personal liability or accountability by reason of the issuance of this Series 2016 A Bond.

 

This Series 2016 A Bond shall not be entitled to any benefit under the Indenture or be valid until this Series 2016 A Bond shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

 

B-5

 

IN WITNESS WHEREOF, the Company has caused this Series 2016 A Bond to be executed in its corporate name by its Executive Vice President and Chief Financial Officer and attested by its Secretary and its corporate seal to be hereunto affixed.

 

	
 
    	
OGLETHORPE POWER CORPORATION
    
	
 
    	
(AN ELECTRIC MEMBERSHIP
    
	
 
    	
CORPORATION), an   electric membership
    
	
 
    	
corporation organized   under the laws of the
    
	
 
    	
State of Georgia
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Elizabeth B. Higgins
    
	
 
    	
 
    	
Executive Vice   President and
    
	
 
    	
 
    	
Chief Financial Officer
    
	
 
    	
 
    
	
(CORPORATE SEAL)
    	
 
    
	
 
    	
 
    
	
Attest:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Patricia N. Nash
    	
 
    
	
Secretary
    	
 
    
				

 

B-6

 

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

 

	
 
    	
U.S. BANK NATIONAL   ASSOCIATION,
    
	
 
    	
as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized   Agent
    
	
 
    	
 
    
	
Date of Authentication:
    	
 
    	
 
    	
 
    
					

 

B-7

 

Schedule 1

 

RECORDING INFORMATION
 FOR  

                                COUNTY, GEORGIA

 

	
DOCUMENT
    	
 
    	
RECORDING
   INFORMATION
    	
 
    	
DATE OF
   RECORDING
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Original Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
First Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Second Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Third Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fourth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fifth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sixth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Seventh Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Eighth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ninth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Tenth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Eleventh Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Twelfth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Thirteenth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fourteenth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fifteenth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sixteenth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Seventeenth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Eighteenth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Nineteenth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    

 

 

	
DOCUMENT
    	
 
    	
RECORDING
   INFORMATION
    	
 
    	
DATE OF
   RECORDING
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Twentieth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Twenty-First Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Twenty-Second Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Twenty-Third Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Twenty-Fourth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Twenty-Fifth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Twenty-Sixth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Twenty-Seventh Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Twenty-Eighth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Twenty-Ninth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Thirtieth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Thirty-First Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Thirty-Second Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Thirty-Third Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Thirty-Fourth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Thirty-Fifth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Thirty-Sixth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Thirty-Seventh Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Thirty-Eighth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Thirty-Ninth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fortieth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Forty-First Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Forty-Second Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    

 

 

	
DOCUMENT
    	
 
    	
RECORDING
   INFORMATION
    	
 
    	
DATE OF
   RECORDING
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Forty-Third Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Forty-Fourth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Forty-Fifth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Forty-Sixth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Forty-Seventh Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Forty-Eighth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Forty-Ninth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fiftieth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fifty-First Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fifty-Second Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fifty-Third Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fifty-Fourth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fifty-Fifth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fifty-Sixth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fifty-Seventh Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fifty-Eighth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fifty-Ninth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sixtieth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sixty-First Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sixty-Second Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sixty-Third Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sixty-Fourth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sixty-Fifth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    

 

 

	
DOCUMENT
    	
 
    	
RECORDING
   INFORMATION
    	
 
    	
DATE OF
   RECORDING
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sixty-Sixth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sixty-Seventh Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sixty-Eighth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sixty-Ninth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Seventieth Supplemental Indenture
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Seventy-First Supplemental Indenture

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00257-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00257-of-00352.parquet"}]]