Document:

a075104b.htm

Exhibit 4(b)

 

Loan Agreement

 

 

between

 

 

Louisiana Public Facilities Authority

 

 

and

 

 

Entergy Louisiana, LLC

 

 

 

Dated as of October 1, 2010

 

 

 

 

$115,000,000

Louisiana Public Facilities Authority

Revenue Bonds

(Entergy Louisiana, LLC Project)

Series 2010

 

  

  

 

  

TABLE OF CONTENTS

Page

 

ARTICLE I

 

DEFINITIONS

 

	
SECTION 1.1.

	
Definitions 

	
3

 

	
SECTION 1.2.

	
Use of Words and Phrases 

	
5

 

	
SECTION 1.3.

	
Nontaxability 

	
5

 

 

ARTICLE II

 

 

REPRESENTATIONS

 

	
SECTION 2.1.

	
Representations and Warranties of the Issuer 

	
6

 

	
SECTION 2.2.

	
Representations and Warranties of the Company 

	
6

 

 

ARTICLE III

 

 

THE FACILITIES

 

	
SECTION 3.1.

	
Maintenance of Facilities Remodeling 

	
8

 

	
SECTION 3.2.

	
Insurance 

	
8

 

	
SECTION 3.3.

	
Condemnation; Eminent Domain 

	
8

 

 

ARTICLE IV

 

 

ISSUANCE OF BONDS; DISPOSITION OF PROCEEDS OF BONDS

 

	
SECTION 4.1.

	
Issuance of the Series 2010 Bonds 

	
9

 

	
SECTION 4.2.

	
Additional Bonds 

	
9

 

	
SECTION 4.3.

	
Disposition of Bond Proceeds; Refunding Fund 

	
9

 

	
SECTION 4.4.

	
Agreement to Redeem Prior Bonds 

	
9

 

	
SECTION 4.5.

	
Compliance with Trust Indentures for Prior Bonds 

	
10

 

 

ARTICLE V

 

 

THE LOAN; OTHER OBLIGATIONS; FIRST MORTGAGE BONDS

 

	
SECTION 5.1.

	
Loan 

	
11

 

	
SECTION 5.2.

	
Loan Payments 

	
11

 

	
SECTION 5.3.

	
Bond Fund 

	
11

 

	
SECTION 5.4.

	
Payments to Issuer 

	
11

 

	
SECTION 5.5.

	
Payments Assigned; Obligation Absolute 

	
11

 

	
SECTION 5.6.

	
Payment of Expenses 

	
12

 

	
SECTION 5.7.

	
Indemnification 

	
12

 

	
SECTION 5.8.

	
Payment of Taxes; Discharge of Liens 

	
12

 

	
SECTION 5.9.

	
Issuance, Delivery and Surrender of First Mortgage Bonds 

	
13

 

 

ARTICLE VI

 

 

SPECIAL COVENANTS AND AGREEMENTS

 

	
SECTION 6.1.

	
Maintenance of Existence 

	
15

 

	
SECTION 6.2.

	
Arbitrage Covenant 

	
15

 

	
SECTION 6.3.

	
Bonds are Limited Obligations 

	
15

 

	
SECTION 6.4.

	
Tax-Exempt Status of Bonds 

	
16

 

	
SECTION 6.5.

	
State Bond Commission Reporting Requirements 

	
17

 

	
SECTION 6.6.

	
Compliance with Law 

	
17

 

	
SECTION 6.7.

	
No Warranty 

	
17

 

 

ARTICLE VII

 

 

ASSIGNMENT, LEASING AND SELLING

 

	
SECTION 7.1.

	
Limitation 

	
18

 

	
SECTION 7.2.

	
Issuer’s Rights of Assignment 

	
18

 

	
SECTION 7.3.

	
Assignment by the Company 

	
18

 

 

ARTICLE VIII

 

 

EVENTS OF DEFAULT AND REMEDIES

 

	
SECTION 8.1.

	
Events of Default 

	
19

 

	
SECTION 8.2.

	
Force Majeure 

	
19

 

	
SECTION 8.3.

	
Remedies on Default 

	
19

 

	
SECTION 8.4.

	
No Remedy Exclusive 

	
20

 

	
SECTION 8.5.

	
Agreement to Pay Attorneys’ Fees and Expenses 

	
20

 

	
SECTION 8.6.

	
Waiver of Breach 

	
20

 

 

ARTICLE IX

 

 

REDEMPTION OR PURCHASE OF BONDS

 

	
SECTION 9.1.

	
Redemption of Bonds 

	
22

 

	
SECTION 9.2.

	
Purchase of Bonds 

	
22

 

 

ARTICLE X

 

 

MISCELLANEOUS

 

	
SECTION 10.1.

	
Notices 

	
23

 

	
SECTION 10.2.

	
Severability 

	
23

 

	
SECTION 10.3.

	
Execution of Counterparts 

	
23

 

	
SECTION 10.4.

	
Amounts Remaining in Bond Fund 

	
24

 

	
SECTION 10.5.

	
Amendments, Changes and Modifications 

	
24

 

	
SECTION 10.6.

	
Governing Law 

	
24

 

	
SECTION 10.7.

	
Authorized Company Representatives 

	
24

 

	
SECTION 10.8.

	
Term of the Agreement 

	
24

 

	
SECTION 10.9.

	
No Personal Liability 

	
24

 

	
SECTION 10.10.

	
Parties in Interest 

	
24

 

Loan Agreement

 

This Loan Agreement dated as of October 1, 2010 (together with any amendments or supplements hereto, this “Agreement”) is by and between the Louisiana Public Facilities Authority (as more fully defined in Section 1.1 hereof, the “Issuer”), a public trust and public corporation organized and existing for the benefit of the State of Louisiana (the “State”), and Entergy Louisiana, LLC, a Texas limited liability company, duly qualified to do business in the State (together with any permitted successors or assigns under this Agreement, the “Company”).

 

W i t n e s s e t h :

 

WHEREAS, the Issuer, a public trust and public corporation of the State, created and existing pursuant to the provisions of Chapter 2-A of Title 9 of the Louisiana Revised Statutes of 1950, as amended, and all future acts supplemental thereto and amendatory thereof (the “Act”), is authorized pursuant to the Act to issue its revenue bonds for the purpose of providing funds for the furtherance and accomplishment of any authorized public function or purpose of the State and to issue obligations to accomplish the foregoing authorized public function or purpose of the State, including the provisions of gas, electric, petroleum, coal and other energy collection, recovery, generation, storage, transportation and distribution facilities and activities; and the provisions of antipollution and air, water, ground and subsurface pollution abatement and control facilities and activities; and

 

WHEREAS, the Company has requested that the Issuer issue $115,000,000 of its Revenue Bonds (Entergy Louisiana, LLC Project) Series 2010 (as more fully defined in Section 1.1 hereof, the “Series 2010 Bonds”) for the purpose of providing funds to refinance the Company’s obligations incurred to refinance certain pollution control facilities and sewerage and solid waste disposal facilities at Unit 3 (Nuclear) of the Waterford Steam Electric Generating Station of the Company; and

 

WHEREAS, the Issuer proposes hereby to lend the proceeds of the Series 2010 Bonds to the Company, and the Company desires to borrow the proceeds of the Series 2010 Bonds upon the terms and conditions set forth herein and use such proceeds to refinance the Company’s obligations with respect to (i) the outstanding Parish of St. Charles, State of Louisiana Pollution Control Revenue Refunding Bonds (Entergy Louisiana, Inc. Project) Series 1999-A issued in the original principal amount of $55,000,000 (the “Series 1999-A Bonds”), all of which are outstanding, and (ii) the outstanding Parish of St. Charles, State of Louisiana Pollution Control Revenue Refunding Bonds (Entergy Louisiana, Inc. Project) Series 1999-B issued in the original principal amount of $60,000,000 (the “Series 1999-B Bonds” and, together with the Series 1999-A Bonds, the “Prior Bonds”), all of which are outstanding; and

 

WHEREAS, the Company is the successor in interest to Entergy Louisiana, Inc., the obligor under the respective refunding agreements relating to the Prior Bonds; and

 

WHEREAS, the Issuer may authorize and issue Additional Bonds (as defined in Section 1.1 of this Agreement) pursuant to the Indenture and Section 4.2 of this Agreement; and

 

WHEREAS, in consideration of the issuance of the Bonds (as defined in Section 1.1 of this Agreement) by the Issuer, the Company will agree to make payments in an amount sufficient to pay the principal of, premium, if any, and interest on the Bonds pursuant to this Agreement, said Bonds to be paid solely from the Revenues (as defined in Section 1.1 of this Agreement), and said Bonds shall not constitute an indebtedness or pledge of the general credit of the Issuer or the State, within the meaning of any constitutional or statutory limitation of indebtedness or otherwise; and

 

WHEREAS, the execution and delivery of this Agreement under the Act have been in all respects duly and validly authorized by resolution duly adopted by the Issuer;

 

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration and the mutual benefits, covenants and agreements herein expressed, the Issuer and the Company agree as follows (provided that any obligation of the Issuer created by or arising out of this Agreement shall not impose a debt or pecuniary liability upon the State or any political subdivision thereof, or a charge upon the general credit or taxing powers of such bodies, but shall be payable solely out of the Revenues (as defined in Section 1.1 of this Agreement) and, to the extent provided in this Agreement, out of the proceeds of the sale of the Series 2010 Bonds and any temporary investment thereof as herein provided).

 

ARTICLE I

 

DEFINITIONS

 

SECTION 1.1.   Definitions.  In addition to the words and terms elsewhere defined in this Agreement or in the Indenture, the following words and terms as used in this Agreement shall have the following meanings unless the context or use indicates another or different meaning:

 

“Additional Bonds” shall mean Bonds in addition to the Series 2010 Bonds which are issued pursuant to the provisions of Section 2.11 of the Indenture.

 

“Administration Expenses” shall mean the reasonable and necessary expenses incurred by the Issuer with respect to this Agreement, the Indenture and any transaction or event contemplated by this Agreement or the Indenture including the compensation and reimbursement of expenses and advances payable to the Trustee, any paying agent, any co-paying agent, and the registrar under the Indenture.

 

“Authorized Company Representative” shall mean any treasurer, assistant treasurer or vice president of the Company or the person or persons at the time designated to act on behalf of the Company by any one of said officers, such designation in each case, to be evidenced by a certificate furnished to the Issuer and the Trustee containing the specimen signature of such person or persons and signed on behalf of the Company by said officer.

 

“Bonds” shall mean the Series 2010 Bonds and any Additional Bonds issued by the Issuer pursuant to the Indenture.

 

“Bond Counsel” shall mean any firm of nationally recognized municipal bond counsel selected by the Company and acceptable to the Issuer and the Trustee.

 

“Bond Fund” shall mean the fund by that name created and established in Section 5.1 of the Indenture.

 

“Code” shall mean the Internal Revenue Code of 1986, as heretofore or hereafter amended.

 

“Company Mortgage” shall mean the Company’s Mortgage and Deed of Trust, dated as of April 1, 1944, made to The Bank of New York Mellon, as trustee (successor to Harris Trust Company of New York), as heretofore and hereafter amended and supplemented, including the Sixty-ninth Supplemental Indenture dated as of October 1, 2010, pursuant to which the series of First Mortgage Bonds relating to the Series 2010 Bonds will be issued.

 

“Company Mortgage Trustee” shall mean the trustee under the Company Mortgage.

 

“Costs of Issuance” means all fees, charges and expenses incurred in connection with the authorization, preparation, sale, issuance and delivery of the Bonds and the First Mortgage Bonds, including, without limitation, financial, legal and accounting fees, expenses and disbursements, rating agency fees, the Issuer’s expenses attributable to the issuance of the Bonds, the cost of printing, engraving and reproduction services and the initial or acceptance fee of the Trustee.

 

“Event of Default” shall mean any event of default specified in Section 8.1 hereof.

 

“Facilities” means the Company’s pollution control facilities and sewerage and solid waste disposal facilities at the Plant, financed in part with the proceeds of the Series 1984 Bonds.

 

“First Mortgage Bonds” shall mean one or more series of bonds issued and delivered under the Company Mortgage and held by the Trustee pursuant to Section 5.9 of this Agreement.

 

“Indenture” means the Trust Indenture dated as of October 1, 2010 between the Issuer and the Trustee securing the Bonds, and any amendments and supplements thereto.

 

“Issuer” means the Louisiana Public Facilities Authority, a public trust and public corporation of the State of Louisiana, created pursuant to the provisions of the Act and pursuant to its Indenture of Trust dated August 21, 1974, or any agency, board, body, commission, department or officer succeeding to the principal functions thereof or to whom the powers conferred upon the Issuer by said provisions shall be given by law.

 

“Loan Payments” means the payments to be made by the Company pursuant to Section 5.2 of this Agreement.

 

“outstanding”, when used with reference to the Bonds, shall mean, as of any particular date, all Bonds authenticated and delivered under the Indenture except:

 

(a) Bonds canceled at or prior to such date or delivered to or acquired by the Trustee prior to such date for cancellation;

 

(b) Bonds deemed to be paid in accordance with Article IX of the Indenture;

 

(c) Bonds in lieu of or in exchange or substitution for which other Bonds shall have been authenticated and delivered pursuant to the Indenture; and

 

(d) Bonds registered in the name of the Issuer.

 

“Plant” means Unit 3 (Nuclear) of the Waterford Steam Electric Generating Station, owned and operated by the Company, and located in the geographic limits of the Parish of St. Charles, State of Louisiana.

 

“Refunding Date” means October 5, 2010 with respect to the Series 1999-A Bonds and October 5, 2010 with respect to the Series 1999-B Bonds, or such later dates as may be established by the Company; provided, however, that the Refunding Date shall not be later than ninety (90) days following the date of delivery of the Series 2010 Bonds to the original purchaser or purchasers of the Series 2010 Bonds.

 

“Refunding Fund” means the fund by that name created and established in Section 6.1 of the Indenture.

 

“Regulations” means the applicable proposed, temporary or final Income Tax Regulations promulgated under the Code, as such regulations may be amended or supplemented from time to time.

 

“Revenues” shall mean all moneys paid or payable by the Company to the Trustee for the account of the Issuer in respect of the principal of, premium, if any, and interest on the Bonds, including, without limitation, amounts paid or payable by the Company pursuant to Sections 5.2 and 9.1 of this Agreement as Loan Payments, amounts paid or payable by the Company in respect of the First Mortgage Bonds, and all receipts of the Trustee credited under the provisions of the Indenture against such payments.

 

“Series 1984 Bonds” means the $115,000,000 Parish of St. Charles, State of Louisiana Adjustable/Fixed Rate Pollution Control Revenue Bonds (Louisiana Power & Light Company Project) Series 1984.

 

“Series 2010 Bonds” means the $115,000,000 Louisiana Public Facilities Authority Revenue Bonds (Entergy Louisiana, LLC Project) Series 2010 issued pursuant to the Indenture.

 

“Trustee” means The Bank of New York Mellon Trust Company, N.A., as trustee under the Indenture, and its successors as trustee.

 

SECTION 1.2.   Use of Words and Phrases.  “Herein”, “hereby”, “hereunder”, “hereof”, “hereinabove”, “hereinafter”, and other equivalent words and phrases refer to this Agreement and not solely to the particular portion thereof in which any such word is used.  The definitions set forth in Section 1.1 hereof include both singular and plural.  Whenever used herein, any pronoun shall be deemed to include both singular and plural and to cover all genders.  Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders.  Unless the context shall otherwise indicate, the words “Bond”, “owner”, “holder” and “person” shall include the plural, as well as the singular, number.

 

Unless the context shall otherwise indicate, “Person” or “person” shall mean any individual, corporation, partnership, joint venture, association, joint stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.

 

SECTION 1.3.   Nontaxability.  It is intended by the parties hereto that this Agreement and all action taken hereunder be consistent with and pursuant to the resolution of the governing authority of the Issuer relating to the Bonds, and that the interest on the Bonds be excluded from the gross income of the recipients thereof for federal income tax purposes other than with respect to a person who is a “substantial user” of the Facilities or a “related person” of a “substantial user” within the meaning of the Code by reason of the provisions of the Code.  The Company will not use any of the funds provided by the Issuer hereunder in such a manner as to impair the exclusion of interest on any of the Bonds from the gross income of the recipient thereof for federal income tax purposes nor will it take any action that would impair such exclusion or fail to take any action if such failure would impair such exclusion.

 

ARTICLE II

 

REPRESENTATIONS

 

SECTION 2.1.   Representations and Warranties of the Issuer.  The Issuer makes the following representations and warranties as the basis for the undertakings on the part of the Company herein contained:

 

(a) The Issuer is a public trust and a public corporation of the State.

 

(b) The Issuer has the power to enter into the transactions contemplated by this Agreement and to carry out its obligations hereunder.  By proper action of the governing body of the Issuer, the Issuer has been duly authorized to execute and deliver this Agreement.

 

(c) The Issuer has not assigned, and will not, except as otherwise required by mandatory provisions of law, assign its interest in this Agreement other than to secure the Bonds.

 

SECTION 2.2.   Representations and Warranties of the Company.  The Company makes the following representations and warranties as the basis for the undertakings on the part of the Issuer herein contained:

 

(a) The Company is a Texas limited liability company in good standing in the State of Texas, is duly qualified and in good standing to do business in the State, is not in violation of any provision of its organizational documents, has power to enter into this Agreement and to perform and observe the agreements and covenants on its part contained herein, including, without limitation, the power to issue and deliver the First Mortgage Bonds as contemplated herein and in the Company Mortgage, and has duly authorized the execution and delivery of this Agreement by proper limited liability company action.

 

(b) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement, including, without limitation, the issuance and delivery of the First Mortgage Bonds, conflicts with or results in a breach of the terms, conditions or provisions of any restriction or any agreement or instrument to which the Company is now a party or by which the Company is bound, or constitutes a default under any of the foregoing, or results in the creation or imposition of any lien, charge or encumbrance whatsoever upon any of the property or assets of the Company except any interests created herein, under the Indenture or under the Company Mortgage.

 

(c) The Federal Energy Regulatory Commission has approved all matters relating to the Company’s participation in the transactions contemplated by this Agreement and the Company Mortgage which require said approval, and no other consent, approval, authorization or other order of any regulatory body or administrative agency or other governmental body is legally required for the Company’s participation therein, except such as may have been obtained or may be required under the securities laws of any state or in connection with the issuance of series of Additional Bonds.

 

ARTICLE III

 

THE FACILITIES

 

SECTION 3.1.   Maintenance of Facilities; Remodeling.  The Company shall, at its expense, cause the Facilities, and every element and unit thereof, to be maintained, preserved and kept in good repair, working order and condition, and from time to time to cause all needful and proper repairs, replacements, additions, betterments and improvements to be made thereto; provided, however, that the Company may exercise all of such rights, powers, elections and options to cause the discontinuance of the operation of, or reduce the capacity of, the Facilities, or any element or unit thereof, if, in the judgment of the Company, any such action is necessary or desirable in the conduct of the business of the Company, or if the Company is ordered so to do by any regulatory authority having jurisdiction in the premises, or if the Company intends to sell or dispose of the same and within a reasonable time shall endeavor to effectuate such sale.

 

The Company may at its own expense cause the Facilities to be remodeled or cause substitutions, modifications and improvements to be made to the Facilities from time to time as it, in its discretion, may deem to be desirable for its uses and purposes, which remodeling, substitutions, modifications and improvements shall be included under the terms of this Agreement as part of the Facilities.

 

SECTION 3.2.   Insurance.  The Company shall, at its expense, cause the Facilities to be kept insured against fire to the extent that property of similar character is usually so insured by companies similarly situated and operating like properties, to a reasonable amount, by reputable insurance companies or, in lieu of or supplementing such insurance in whole or in part, adopt some other method or plan of protection against loss by fire at least equal in protection to the method or plan of protection against such loss of companies similarly situated and operating like properties.  All proceeds of such insurance, or such other method or plan, shall be for the account of the Company.

 

SECTION 3.3.   Condemnation; Eminent Domain.  (a)  In the event that title to or the temporary use of the Facilities, or any part thereof, shall be taken in condemnation or by the exercise of the power of eminent domain by any governmental body or by any person, firm or corporation acting under governmental or statutory authority, any proceeds from any award or awards in respect of the Facilities or any part thereof made in such condemnation or eminent domain proceedings, after payment of all expenses incurred in the collection thereof; shall be paid for the account of the Company.

 

(b) The Company shall be entitled to the entire proceeds of any condemnation award or portion thereof made for damages to or takings of its own property other than the Facilities.

 

ARTICLE IV

 

ISSUANCE OF BONDS; DISPOSITION OF PROCEEDS OF BONDS

 

SECTION 4.1.   Issuance of the Series 2010 Bonds.  The Issuer shall issue the Series 2010 Bonds under and in accordance with the Indenture, subject to the provisions of any bond purchase agreement between the Issuer and the original purchaser or purchasers of the Series 2010 Bonds.  The Company hereby approves the issuance of the Series 2010 Bonds and all terms and conditions thereof.

 

SECTION 4.2.   Additional Bonds.  So long as the Company shall not be in default hereunder, and at the request of the Company, the Issuer may authorize and issue Additional Bonds in aggregate principal amounts specified from time to time by the Company in order to provide funds for the purpose of refunding the Series 2010 Bonds or any series of Additional Bonds, in whole or in part, or any combination thereof.  Any such issuance of Additional Bonds shall be in accordance with the Indenture, including Sections 2.7 and 2.11 thereof.

 

The right to issue Additional Bonds set forth in this Agreement and the Indenture shall not imply that the Issuer and the Company may not enter into, and the Issuer and the Company expressly reserve the right to enter into, to the extent permitted by law, another agreement or agreements with respect to the issuance by the Issuer, under an indenture or indentures other than the Indenture, of bonds to fund additional facilities at the Plant or refunding bonds to refund all or any principal amount of all or any series of Bonds, and the provisions of this Agreement and the Indenture governing the issuance of Additional Bonds shall not apply thereto.

 

SECTION 4.3.   Disposition of Bond Proceeds; Refunding Fund.  In consideration of the loan by the Issuer to the Company of the proceeds of the sale of the Series 2010 Bonds as provided in Section 5.1 hereof, the Company agrees that the proceeds of the Series 2010 Bonds shall be deposited with the Trustee in the Refunding Fund in accordance with the Indenture.  The Trustee, as authorized by the Issuer in the Indenture, shall transfer out of the Refunding Fund the proceeds of the Series 2010 Bonds on or before the Refunding Date as follows:  (a) $55,000,000 to The Bank of New York Mellon (successor to The Bank of New York), as trustee for the Series 1999-A Bonds, and (b) $60,000,000 to The Bank of New York Mellon (successor to Chase Bank of Texas, National Association), as trustee for the Series 1999-B Bonds, for disbursement and investment in accordance with the Trust Indenture (Series 1999-A) dated as of June 1, 1999 with respect to the Series 1999-A Bonds, and the Trust Indenture (Series 1999-B) dated as of June 1, 1999 with respect to the Series 1999-B Bonds, in order to redeem, together with moneys of the Company deposited therein, all of the outstanding Prior Bonds on the Refunding Date.  The proceeds from the sale of any Additional Bonds shall be applied simultaneously with the delivery of such Additional Bonds in the manner provided in the Indenture and in the supplemental indenture authorizing such Additional Bonds.

 

SECTION 4.4.   Agreement to Redeem Prior Bonds.  The Company agrees to pay to the trustees for the Prior Bonds, in funds available to the trustees for the Prior Bonds on or prior to the Refunding Date, for deposit into the bond fund created under the trust indentures for the Prior Bonds securing the Prior Bonds and in accordance with the terms of the trust indentures for the Prior Bonds, any amount necessary to pay $115,000,000 principal amount of the Prior Bonds, together with the premium, if any, and accrued interest due thereon on the Refunding Date, to the extent that the amount delivered by the Issuer pursuant to Section 4.3 hereof is insufficient for such purpose.  The Company shall pay out of its own money and not out of proceeds of the Bonds all reasonable Costs of Issuance with respect to the Bonds.

 

SECTION 4.5.   Compliance with Trust Indentures for Prior Bonds.  The Issuer shall, at the request of the Company, take all steps as may be necessary under the trust indentures for the Prior Bonds to effect the redemption of all of the outstanding Prior Bonds on the Refunding Date as provided in the trust indentures for the Prior Bonds and as contemplated herein.

 

ARTICLE V

 

THE LOAN; OTHER OBLIGATIONS; FIRST MORTGAGE BONDS

 

SECTION 5.1.   Loan.  The proceeds of the sale of the Series 2010 Bonds which are deposited into the Refunding Fund pursuant to the Indenture are hereby loaned by the Issuer to the Company in accordance with the provisions of this Agreement.  The Issuer hereby agrees to make additional loans to the Company from time to time from the proceeds of any Additional Bonds issued by the Issuer pursuant to the Indenture.

 

SECTION 5.2.   Loan Payments.  To repay the loan, the Company shall make or cause to be made Loan Payments in installments, so as to provide amounts for the timely payment of the principal of, premium, if any, and interest on the Bonds on the dates and in the amounts and in the manner provided in the Indenture for the Issuer to cause payment to be made to the Trustee of principal of, premium, if any, and interest on the Bonds, whether at maturity, upon redemption or acceleration, or otherwise; provided, however, that the obligation of the Company to make any such payment hereunder shall be reduced by the amount of any reduction under the Indenture of the amount of the corresponding payment required to be made by the Issuer thereunder in respect of the principal of or premium, if any, or interest on the Bonds.

 

SECTION 5.3.   Bond Fund.  The Company shall pay the Loan Payments required of it under this Agreement by remitting or causing to be remitted the same directly to the Trustee for deposit in the Bond Fund established under the Indenture and administered by the Trustee as provided in the Indenture.

 

SECTION 5.4.   Payments to Issuer.  Out of funds provided by the Company, there shall be paid (i) all of the Issuer’s reasonable actual out-of-pocket expenses and costs of issuance in connection with the Bonds, and (ii) on the date of delivery of the Bonds, an issuance fee to the Issuer in the amount of 1/20th of 1% of the face amount of the Bonds.  The Company agrees to make administrative payments directly to the Issuer on June 1 of each year in an amount equal to 1/10th of 1% of the outstanding Bonds on January 1 of each year unless waived by the Issuer, if billed.  The administrative payments shall be used for the purpose of paying administrative and related costs of the Issuer, but shall not include Trustee fees or expenses incurred by the Issuer in enforcing the provisions of this Agreement.  The Issuer agrees that it will notify the Company in writing prior to March 15 of each year thereafter whether it shall waive such administrative payments for such year.  If these fees are not waived, such written notice shall advise the Company of the amount that is to be paid (not to exceed 1/10 of 1% per annum of the outstanding Bonds on January 1 of each year), the date on which payment is due, and where such payment is to be remitted.  In the event the Company should fail to pay such administrative expenses then due, the payment shall continue as an obligation of the Company until the amount shall have been fully paid, and the Company agrees to pay the same with interest thereon (to the extent legally enforceable) at a rate per annum equal to the interest rate in effect from time to time on the Bonds, until paid.

 

SECTION 5.5.   Payments Assigned; Obligation Absolute.  It is understood and agreed that all Loan Payments to be made by the Company are, by the Indenture, to be pledged by the Issuer to the Trustee, and that all rights and interest of the Issuer hereunder (except for the Issuer’s rights under Sections 5.4, 5.6, 5.7, 5.8 and 8.5 hereof and any rights of the Issuer to receive notices, certificates, requests, requisitions, directions and other communications hereunder), and under the First Mortgage Bonds (including the right to receive the First Mortgage Bonds under this Agreement), are to be pledged and assigned to the Trustee.  The Company assents to such pledge and assignment and agrees that the obligation of the Company to make the Loan Payments shall be absolute, irrevocable and unconditional and shall not be subject to cancellation, termination or abatement, or to any defense other than payment or to any right of set-off, counterclaim or recoupment arising out of any breach under this Agreement, the Indenture or otherwise by the Issuer or the Trustee or any other party, or out of any obligation or liability at any time owing to the Company by the Issuer, the Trustee or any other party, and, further, that the Loan Payments and the other payments due hereunder shall continue to be payable at the times and in the amounts specified herein, whether or not the Facilities or the Plant, or any portion thereof, shall have been destroyed by fire or other casualty, or title thereto, or the use thereof, shall have been taken by the exercise of the power of eminent domain, and that there shall be no abatement of or diminution in any such payments by reason thereof, whether or not the Facilities or the Plant shall be used or useful, and whether or not any applicable laws, regulations or standards shall prevent or prohibit the use of the Facilities or the Plant, or for any other reason.

 

SECTION 5.6.   Payment of Expenses.  The Company shall pay all of the Administration Expenses of the Issuer and the compensation and the reimbursement of expenses and advances of the Trustee, any paying agent, any co-paying agent, and the registrar under the Indenture, such payments to be made directly to such entities.

 

SECTION 5.7.   Indemnification.  The Company releases the Issuer and the Trustee from, agrees that the Issuer and the Trustee shall not be liable for, and agrees to indemnify and hold the Issuer and the Trustee free and harmless from, any liability for any loss or damage to property or any injury to or death of any person that may be occasioned by any cause whatsoever pertaining to the Facilities, except in any case as a result of the bad faith of the Issuer or the negligence or bad faith of the Trustee.

 

The Company will indemnify and hold the Issuer and the Trustee free and harmless from any loss, claim, damage, tax, penalty, liability (including but not limited to liability for any patent infringement), disbursement, litigation expenses, attorneys’ fees and expenses or court costs arising out of, or in any way relating to, the execution or performance of this Agreement, the issuance or sale of the Bonds, actions taken under the Indenture, or any other cause whatsoever pertaining to the Facilities, except in any case as a result of the negligence or bad faith of the Trustee.

 

Under this Section 5.7, the Company shall also be deemed to release, indemnify and agree to hold harmless each employee, official or officer of the Issuer and the Trustee to the same extent as the Issuer and the Trustee.  The provisions of this Section shall survive the termination of this Agreement.

 

SECTION 5.8.   Payment of Taxes; Discharge of Liens.  The Company shall:  (a) pay, or make provision for payment of, all lawful taxes and assessments, including income, profits, property or excise taxes, if any, or other municipal or governmental charges, levied or assessed by any federal, state or municipal government or political body upon the Issuer upon any amounts payable hereunder; and (b) pay or cause to be satisfied and discharged or make adequate provision to satisfy and discharge, within sixty (60) days after the same shall accrue, any lien or charge upon any amounts payable hereunder, and all lawful claims or demands for labor, materials, supplies or other charges which, if unpaid, might be or become a lien upon such amounts; provided, that, if the Company shall first notify the Issuer and the Trustee of its intention so to do, the Company may in good faith contest any such lien or charge or claims or demands in appropriate legal proceedings, and in such event may permit the items so contested to remain undischarged and unsatisfied during the period of such contest and any appeal therefrom, unless by nonpayment of any such items the lien of the Indenture as to the amounts payable hereunder will be materially endangered, in which event the Company shall promptly pay and cause to be satisfied and discharged all such unpaid items.  The Issuer shall cooperate fully with the Company in any such contest.

 

SECTION 5.9.   Issuance, Delivery and Surrender of First Mortgage Bonds.  (a) The obligation of the Company set forth in Section 5.2 hereof to make the Loan Payments required therein with respect to the Series 2010 Bonds shall be evidenced by a series of First Mortgage Bonds.  The Company shall issue and deliver to the Issuer First Mortgage Bonds as provided in subsection (b) of this Section 5.9.

 

(b) The obligations of the Company to make payments under Section 5.2 hereof in respect of the Series 2010 Bonds shall be evidenced by a series of First Mortgage Bonds with the excess of the principal amount of the First Mortgage Bonds over the principal amount of the Series 2010 Bonds to be applied to the payment of accrued interest on the Series 2010 Bonds.  Concurrently with the issuance and delivery by the Issuer of the Series 2010 Bonds, the Company shall issue and deliver to the Issuer a series of First Mortgage Bonds (i) maturing on the stated maturity date of the Series 2010 Bonds, (ii) in a principal amount equal to the sum of (A) the aggregate principal amount of the Series 2010 Bonds and (b) an amount equal to eight and one-half months interest on the Series 2010 Bonds, (iii) containing redemption provisions correlative to the redemption provisions of the Indenture relating to the Series 2010 Bonds requiring mandatory redemption thereof, (iv) requiring payments to be made to the Trustee for the account of the Issuer, and (v) bearing no interest.

 

(c) The obligation of the Company to make any payment of the principal of or premium, if any, or interest on the First Mortgage Bonds, whether at maturity, upon redemption or otherwise, shall be reduced by the amount of any reduction under the Indenture of the amount of the corresponding payment required to be made by the Issuer thereunder in respect of the principal of or premium, if any, or interest on the Series 2010 Bonds, all in accordance with the provisions of the Company Mortgage.

 

(d) The Issuer shall not sell, assign or transfer the First Mortgage Bonds, except to the extent provided in Section 5.5 hereof.  In view of the pledge and assignment referred to in said Section 5.5, the Issuer agrees that (i) in satisfaction of the obligations of the Company set forth in paragraph (b) of this Section 5.9 with respect to the Series 2010 Bonds, the First Mortgage Bonds shall be issued and delivered to, registered in the name of, and held by the Trustee for the benefit of the owners and holders from time to time of the Series 2010 Bonds; (ii) the Indenture shall provide that the Trustee shall not sell, assign or transfer the First Mortgage Bonds except to a successor trustee under the Indenture, and shall surrender First Mortgage Bonds to the Company Mortgage Trustee in accordance with the provisions of subsection (e) of this Section; and (iii) the Company may take such actions as it shall deem to be desirable to effect compliance with such restrictions on transfer, including the placing of an appropriate legend on each First Mortgage Bond and the issuance of stop-transfer instructions to the Company Mortgage Trustee or any other transfer agent under the Company Mortgage.  Any action taken by the Trustee in accordance with the provisions of Section 4.8 of the Indenture shall be binding upon the Company.

 

(e) At the time any Series 2010 Bonds cease to be outstanding (other than by reason of the payment or redemption of First Mortgage Bonds and other than by reason of the applicability of clause (c) in the definition of “Outstanding” herein), the Issuer shall cause the Trustee to surrender for cancellation to the Company Mortgage Trustee First Mortgage Bonds in an aggregate principal amount equal to the sum of (i) the aggregate principal amount of the Series 2010 Bonds which so cease to be outstanding and (ii) an amount equal to eight and one-half months interest on the amount of Series 2010 Bonds which so cease to be outstanding.

 

(f) For the purpose of determining whether or not any payment of the principal of or premium, if any, or interest on the First Mortgage Bonds shall have been made in full, any moneys paid by the Company in respect of the First Mortgage Bonds which shall have been withdrawn by the Trustee from the Bond Fund pursuant to Section 5.4 of the Indenture shall be deemed to have been paid by the Company to the Trustee pursuant to Section 5.2 hereof and not to have been paid by the Company in respect of the First Mortgage Bonds.

 

(g) The obligation of the Company set forth in Section 5.2 hereof to make Loan Payments therein with respect to any Additional Bonds may be evidenced by one or more series of First Mortgage Bonds on terms and conditions that will be set forth in either an amendment or supplement to this Agreement or a supplemental indenture to the Indenture.

 

ARTICLE VI

 

SPECIAL COVENANTS AND AGREEMENTS

 

SECTION 6.1.   Maintenance of Existence.  The Company shall maintain its organizational existence, will not dissolve or otherwise dispose of all or substantially all of its assets and will not consolidate with or merge with or into another entity; provided, however, that the Company may consolidate with or merge with or into, or sell or otherwise transfer all or substantially all of its assets (and thereafter dissolve) to, another entity, organized under the laws of the United States, one of the states thereof or the District of Columbia, if the surviving, resulting or transferee entity, as the case may be (if other than the Company), prior to or simultaneously with such consolidation, merger, sale or transfer, assumes, by delivery to the Trustee of an instrument in writing satisfactory in form and substance to the Trustee, all of the obligations of the Company hereunder and under the First Mortgage Bonds, and provided that both immediately prior to such dissolution, disposal, consolidation or merger and after giving effect thereto, no Event of Default under this Agreement (or event which, with the giving of notice or passage of time, or both, would constitute an Event of Default under this Agreement) shall have occurred and be continuing.

 

If a consolidation, merger or sale or other transfer is made as permitted by this Section 6.1, the provisions of this Section 6.1 shall continue in full force and effect and no further consolidation, merger or sale or other transfer shall be made except in compliance with the provisions of this Section 6.1.

 

SECTION 6.2.   Arbitrage Covenant.  The Issuer and the Company covenant that the proceeds of the sale of the Bonds, the earnings thereon, and any other moneys on deposit in any fund or account maintained in respect of the Bonds (whether such moneys were derived from the proceeds of the sale of the Bonds or from other sources) will not be used in a manner which would cause the Bonds to be treated as “arbitrage bonds” within the meaning of Section 148 of the Code.  The Company further covenants that:  (a) all actions with respect to the Bonds required by Section 148(f) of the Code shall be taken; (b) it shall make the determinations required by paragraph (b) of Section 7.2 of the Indenture and promptly notify the Trustee of the same, together with supporting calculations; and (c) it shall within twenty-five (25) days after (i) the calendar date which corresponds to the final maturity of the respective series of Bonds and each anniversary thereof falling on or after the date of initial authentication and delivery thereof up to and including the final maturity of such series of the Bonds, unless the final payment, whether upon redemption in whole or at maturity, of such Bonds shall have occurred prior to such anniversary, and (ii) such final payment, file with the Trustee a statement signed by the chief financial officer of the Company (or person performing similar functions) to the effect that the Company is then in compliance with its covenants contained in clauses (a) and (b) of this sentence, together with supporting calculations; provided, however, that if the Company shall furnish an opinion of Bond Counsel to the Trustee to the effect that no further action by the Company is required for such compliance with respect to the Bonds, the Company shall not thereafter be required to deliver any such statements or calculations.

 

SECTION 6.3.   Bonds are Limited Obligations.  The Bonds shall be limited obligations of the Issuer, payable solely out of the Revenues.

 

THE BONDS ARE LIMITED AND SPECIAL OBLIGATIONS OF THE ISSUER AND DO NOT CONSTITUTE OR CREATE AN OBLIGATION, GENERAL OR SPECIAL, DEBT, LIABILITY OR MORAL OBLIGATION OF THE STATE OR ANY POLITICAL SUBDIVISION THEREOF WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISIONS WHATSOEVER AND NEITHER THE FAITH OR CREDIT NOR THE TAXING POWER OF THE STATE OR OF ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR THE INTEREST ON THE BONDS.  THE BONDS ARE NOT A GENERAL OBLIGATION OF THE ISSUER (WHICH HAS NO TAXING POWER AND RECEIVES NO FUNDS FROM ANY GOVERNMENTAL BODY) BUT ARE A LIMITED AND SPECIAL REVENUE OBLIGATION OF THE ISSUER PAYABLE SOLELY FROM THE REVENUES.

 

SECTION 6.4.   Tax-Exempt Status of Bonds.  The Issuer and the Company mutually covenant and agree that neither of them shall take or authorize or permit any action to be taken, and have not taken or authorized or permitted any action to be taken, which results in interest paid on the Bonds being included in gross income for purposes of federal income taxes.  Without limiting the generality of the foregoing, the Company further covenants, represents and agrees as follows:

 

(a) Substantially all of the net proceeds of the sale of the Series 1984 Bonds have been used to undertake the acquisition of air or water pollution control facilities or sewerage or solid waste disposal facilities within the meaning of Section 103(b)(4) of the Internal Revenue Code of 1954, as amended.  All of the proceeds of the Series 1984 Bonds and the Prior Bonds have been expended.

 

(b) The weighted average maturity of the Series 2010 Bonds does not exceed 120% of the reasonably expected economic life of the Facilities financed with the proceeds of the Series 1984 Bonds.

 

(c) The principal amount of the Series 2010 Bonds shall not exceed the outstanding principal amount of the Prior Bonds.

 

(d) The Series 2010 Bonds are not and will not be “federally guaranteed” (as defined in Section 149(b) of the Code).

 

(e) None of the proceeds of the Series 2010 Bonds will be used, and none of the proceeds of the Series 1984 Bonds or the Prior Bonds were used, to provide any airplane, skybox or other private luxury box, or health club facility; any facility primarily used for gambling; or any store the principal business of which is the sale of alcoholic beverages for consumption off premises.

 

(f) The information furnished by the Company and used by the Issuer in preparing its No-Arbitrage Certificate dated the issue date of the Series 2010 Bonds is accurate and complete as of the date of the issuance of the Series 2010 Bonds.

 

(g) None of the proceeds of the Series 2010 Bonds will be used to finance Costs of Issuance of the Series 2010 Bonds.

 

(h) The Company will take no action that would cause any funds constituting gross proceeds of the Series 2010 Bonds to be used in a manner as to constitute a prohibited payment under the applicable regulations pertaining to, or in any other fashion as would constitute failure of compliance with, Section 148 of the Code and the applicable regulations thereunder.

 

The Company will not knowingly take any action, or knowingly omit to take any action, which action or omission will adversely affect the exclusion from gross income of the holders thereof for federal income tax purposes of interest on the Bonds (other than holders who are substantial users of the Facilities or related persons within the meaning of section 147(a) of the Code), and in the event of such action or omission (whether taken with knowledge or not) will promptly, upon receiving knowledge thereof, take all lawful actions, based on advice of Bond Counsel and at the Company’s expense, as may rescind or otherwise negate such action or omission.

 

The covenants and agreements contained in this Section 6.4 shall survive any termination of this Agreement.

 

SECTION 6.5.   State Bond Commission Reporting Requirements.  The Company covenants that it shall furnish to the Issuer and Bond Counsel such information necessary to satisfy the reporting requirements of La. R.S. 39:1405.4, as may be amended from time to time.  This information shall be delivered to the Issuer and Bond Counsel not less than five business days prior to the date such information is to be reported to the Louisiana State Bond Commission.

 

SECTION 6.6.   Compliance with Law.  The Company shall, throughout the term of this Agreement and at no expense to the Issuer, promptly comply or cause compliance with all laws, ordinances, orders, rules, regulations and requirements of duly constituted public authorities that are applicable to the Facilities or to the repair and alteration thereof, or to the use or manner of use of the Facilities and which, if there is non­compliance, would materially adversely affect or impair the obligations of the Company under this Agreement or the ability of the Company to discharge such obligations.  Notwithstanding the foregoing, the Company shall have the right to contest the legality of any such law, ordinance, order, rule, regulation or requirement as applied to the Facilities provided that in the opinion of counsel to the Company such contest shall not in any way materially adversely affect or impair the obligations of the Company under this Agreement or the ability of the Company to discharge such obligations.

 

SECTION 6.7.   No Warranty.  The Issuer makes no warranty, either express or implied, as to the Facilities, including, without limitation, title to the Facilities or the actual or designed capacity of the Facilities, as to the suitability or operation of the Facilities for the purposes specified in this Agreement, as to the condition of the Facilities or as to the suitability thereof for the Company’s purposes or needs or as to compliance of the Facilities with applicable laws and regulations or the ability of the Company to discharge the Bonds.  The Company covenants with the Issuer that it will make no claim against the Issuer for any deficiency which may at any time exist in the Facilities, nor will it assert against the Issuer any other claim for breach of warranty with respect to the Facilities.  The obligations of the Company under this Section shall survive any assignment or termination of this Agreement.

 

ARTICLE VII

 

ASSIGNMENT, LEASING AND SELLING

 

SECTION 7.1.   Limitation.  This Agreement shall not be assigned nor shall the Facilities be leased or sold, in whole or in part, except as provided in this Article VII or in Section 6.1 hereof or in the Indenture.

 

SECTION 7.2.   Issuer’s Rights of Assignment.  The Issuer may, only in accordance with the Indenture, assign its rights and interests under this Agreement as set forth in Section 5.5 hereof (including the First Mortgage Bonds) and pledge the moneys receivable hereunder to the Trustee as security for payment of the principal of and premium, if any, and interest on the Bonds and all amounts payable under the Indenture, the Bonds and this Agreement.  The Company hereby assents to such assignments and agrees that the Trustee may exercise and enforce in accordance with the Indenture any of the rights of the Issuer under this Agreement or the First Mortgage Bonds.  Any such assignment, however, shall be subject to all of the rights and privileges of the Company as provided in this Agreement.

 

SECTION 7.3.   Assignment by the Company.  The Company’s interest in this Agreement may be assigned in whole or in part, and the Facilities may be leased or sold as a whole or in part (whether a specific element or unit or an undivided interest), by the Company, subject, however, to the condition that no assignment, lease or sale (other than as described in Section 6.1 hereof) shall relieve the Company from primary liability for its obligations under Section 5.2 hereof to pay the Loan Payments, or for any other of its obligations hereunder or under the First Mortgage Bonds, other than those obligations relating to the operation, maintenance and insurance of the Facilities, which obligations (to the extent of the interest assigned, leased or sold and to the extent assumed by the assignee, lessee or purchaser) shall be deemed to be satisfied and discharged.

 

After any lease or sale of any element or unit of the Facilities, or any interest therein, such element or unit, or interest therein, shall no longer be deemed to be part of the Facilities for the purposes of this Agreement.

 

The Company shall, within fifteen (15) days after the delivery thereof, furnish to the Issuer and the Trustee a true and complete copy of the agreements or other documents effectuating any such assignment, lease or sale.

 

ARTICLE VIII

 

EVENTS OF DEFAULT AND REMEDIES

 

SECTION 8.1.   Events of Default.  Each of the following events shall constitute and is referred to in this Agreement as an “Event of Default”:

 

(a) a “Default” as such term is defined in Section 65 of the Company Mortgage;

 

(b) a failure by the Company to make when due any Loan Payments required to be made pursuant to Section 5.2 hereof, which failure shall have resulted in an “Event of Default” under Section 10.1(a) or (b) of the Indenture; or

 

(c) a failure by the Company to pay when due any other amount required to be paid under this Agreement or to observe and perform any covenant, condition or agreement on its part to be observed or performed, which failure shall continue for a period of ninety (90) days after written notice, specifying such failure and requesting that it be remedied, shall have been given to the Company by the Issuer or the Trustee, unless the Issuer and the Trustee shall agree in writing to an extension of such period prior to its expiration; provided, however, that the Issuer and the Trustee shall be deemed to have agreed to an extension of such period if corrective action is initiated by the Company within such period and is being diligently pursued.

 

SECTION 8.2.   Force Majeure.  The provisions of Section 8.1 hereof are subject to the following limitations: If by reason of acts of God; strikes, lockouts or other industrial disturbances; acts of public enemies; orders or other acts of any kind of the government of the United States or of the State of Louisiana, or any other sovereign entity or body politic, or any department, agency, political subdivision, court or official of any of them, or any civil or military authority; insurrections; riots; epidemics; landslides; lightning; earthquakes; volcanoes; fires; hurricanes; tornados; storms; floods; washouts; droughts; arrests; restraint of government and people; civil disturbances; explosions; breakage of, or accident to, machinery; partial or entire failure of utilities; or any cause or event not reasonably within the control of the Company, the Company is unable in whole or in part to carry out any one or more of its agreements or obligations contained herein, other than its obligations under Section 5.2 hereof to pay the Loan Payments and its obligations under Sections 5.8, 6.1, 6.4 and 9.1 hereof, the Company shall not be deemed in default by reason of not carrying out said agreement or agreements or performing said obligation or obligations during the continuance of such inability.  The Company agrees, however, to use its best efforts to remedy with all reasonable dispatch the cause or causes preventing it from carrying out its agreements; provided, that the settlement of strikes, lockouts and other industrial disturbances shall be entirely within the discretion of the Company, and the Company shall not be required to make settlement of strikes, lockouts and other industrial disturbances by acceding to the demands of the opposing party or parties when such course, is in the judgment of the Company, unfavorable to the Company.

 

SECTION 8.3.   Remedies on Default.  (a) Upon the occurrence and continuance of any Event of Default described in clause (a) of Section 8.1 hereof, the Trustee, as the holder of the First Mortgage Bonds, shall, subject to the provisions of the Indenture, have the rights provided in the Company Mortgage.

 

(b) Upon the occurrence and continuance of any Event of Default described in Section 8.1 hereof, and further upon the condition that, in accordance with the terms of the Indenture, the Bonds shall have become immediately due and payable pursuant to any provision of the Indenture, the Loan Payments required to be paid pursuant to Section 5.2 hereof shall, without further action, become and be immediately due and payable.

 

(c) Upon the occurrence and continuance of any Event of Default, the Issuer with the prior consent of the Trustee, or the Trustee, may take any action at law or in equity (including as a holder of the First Mortgage Bonds) to collect the payments then due and thereafter to become due hereunder, or to enforce performance and observance of any obligation, agreement or covenant of the Company under this Agreement.

 

(d) Any amounts collected pursuant to action taken under this Section shall be applied in accordance with the Indenture.

 

(e) In case any proceeding taken by the Issuer or the Trustee on account of any Event of Default shall have been discontinued or abandoned for any reason, or shall have been determined adversely to the Issuer or the Trustee, then and in every such case the Issuer and the Trustee shall be restored to their former positions and rights hereunder, respectively, and all rights, remedies and powers of the Issuer and the Trustee shall continue as though no such proceeding had been taken.

 

SECTION 8.4.   No Remedy Exclusive.  No remedy conferred upon or reserved to the Issuer or the Trustee by this Agreement is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute.  No delay or omission to exercise any right or power accruing upon any Event of Default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right or power may be exercised from time to time and as often as may be deemed expedient.  In order to entitle the Issuer or the Trustee to exercise any remedy reserved to it in this Article, it shall not be necessary to give any notice other than such notice as may be required in this Article.

 

SECTION 8.5.   Agreement to Pay Attorneys’ Fees and Expenses.  In the event the Company should default under any of the provisions of this Agreement and the Issuer or the Trustee should employ attorneys or incur other expenses for the collection of payments due hereunder or for the enforcement of performance or observance of any obligation or agreement on the part of the Company contained herein or in the First Mortgage Bonds, the Company agrees that it will on demand therefor pay to the Issuer or the Trustee, as the case may be, the reasonable fees of such attorneys and such other expenses so incurred.

 

SECTION 8.6.   Waiver of Breach.  In the event that any agreement contained herein shall be breached by either the Company or the Issuer and such breach shall thereafter be waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other breach hereunder.  In view of the assignment of the Issuer’s rights in and under this Agreement to the Trustee under the Indenture, the Issuer shall have no power to waive any default hereunder by the Company without the consent of the Trustee.  Any waiver of any “Event of Default” under the Indenture and a rescission and annulment of its consequences, and any waiver of any “Default” under the Company Mortgage and a rescission and annulment of its consequences, shall constitute a waiver of the corresponding Event of Default hereunder or a “Default” thereunder and a rescission and annulment of the consequences thereof.

 

ARTICLE IX

 

REDEMPTION OR PURCHASE OF BONDS

 

SECTION 9.1.   Redemption of Bonds.  The Issuer shall take the actions required by the Indenture to discharge the lien thereof through the redemption, or provision for payment or redemption, of all Bonds then outstanding, or to effect the redemption, or provision for payment or redemption, of less than all the Bonds then outstanding, upon receipt by the Issuer and the Trustee from the Company of a notice designating the principal amounts, series and maturities of the Bonds to be redeemed, or for the payment or redemption of which provision is to be made, and, in the case of redemption of Bonds, or provision therefor, specifying the date of redemption, which shall not be less than forty-five (45) days from the date such notice is given (or such shorter period as may be agreed to by the Trustee), and the applicable redemption provision of the Indenture.  Unless otherwise stated therein or otherwise required by the Indenture, such notice shall be revocable by the Company at any time prior to the time at which the Bonds to be redeemed, or for the payment or redemption of which provision is to be made, are first deemed to be paid in accordance with Article IX of the Indenture.  The Company shall furnish, as a prepayment of the Loan Payments, any moneys or Government Securities (as defined in the Indenture) required by the Indenture to be deposited with the Trustee or otherwise paid by the Issuer in connection with any of the foregoing purposes.

 

SECTION 9.2.   Purchase of Bonds.  The Company may at any time, and from time to time, furnish moneys to the Trustee accompanied by a notice directing the Trustee to apply such moneys to the purchase in the open market of Bonds in the principal amounts and of the series and maturities specified in such notice, and any Bonds so purchased shall thereupon be canceled by the Trustee.

 

ARTICLE X

 

MISCELLANEOUS

 

SECTION 10.1.   Notices.  Except as otherwise provided in this Agreement, all notices, certificates or other communications shall be sufficiently given and shall be deemed given when mailed by registered or certified mail, postage prepaid, to the Issuer, the Company or the Trustee.  Copies of each notice, certificate or other communication given hereunder by or to the Company shall be mailed by registered or certified mail, postage prepaid, to the Trustee; provided, however, that the effectiveness of any such notice shall not be affected by the failure to send any such copies.  Notices, certificates or other communications shall be sent to the following addresses:

 

	
Company:

	
Entergy Louisiana, LLC

639 Loyola Avenue

New Orleans, LA  70113

ATTN:  Frank Williford

Phone:  504-576-4684

Email:  fwillif@entergy.com

 

	
Issuer:

	
Louisiana Public Facilities Authority

2237 South Acadian Thruway, Suite 650

Baton Rouge, LA  70808

ATTN:  President and CEO

Phone:  225-923-0020

Email:  parks@lpfa.com

 

	
Trustee and Bond Registrar:

	
The Bank of New York Mellon Trust Company, N.A.

The Bank of New York Mellon Plaza

10161 Centurion Parkway

Jacksonville, FL  32256

ATTN:  Global Corporate Trust Division

Phone:  904-645-1943

Email:  cindy.moore@bnymellon.com

 

Any of the foregoing may, by notice given hereunder, designate any further or different addresses to which subsequent notices, certificates or other communications shall be sent.

 

SECTION 10.2.   Severability.  If any provision of this Agreement shall be held or deemed to be or shall, in fact, be illegal, inoperative or unenforceable, the same shall not affect any other provision or provisions herein contained or render the same invalid, inoperative, or unenforceable to any extent whatever.

 

SECTION 10.3.   Execution of Counterparts.  This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.

 

SECTION 10.4.   Amounts Remaining in Bond Fund.  It is agreed by the parties hereto that after payment in full of (i) the Bonds (or the provision for payment thereof having been made in accordance with the provisions of the Indenture), (ii) the Administration Expenses of the Issuer, and (iii) all other amounts required to be paid under this Agreement and the Indenture, any amounts remaining in the Bond Fund shall belong to and be paid by the Trustee to the Company.

 

SECTION 10.5.   Amendments, Changes and Modifications.  Except as otherwise provided in this Agreement or the Indenture, subsequent to the initial issuance of Bonds and prior to payment in full of the Bonds (or provision for payment thereof having been made in accordance with the provisions of the Indenture), this Agreement may not be effectively amended, changed, modified, altered or terminated nor any provision waived without the written consent of the Trustee, which shall not be unreasonably withheld.

 

SECTION 10.6.   Governing Law.  This Agreement shall be governed exclusively by and construed in accordance with the applicable laws of the State of Louisiana.

 

SECTION 10.7.   Authorized Company Representatives.  An Authorized Company Representative shall act on behalf of the Company whenever the approval of the Company is required or the Company requests the Issuer to take some action, and the Issuer and the Trustee shall be authorized to act on any such approval or request and neither party hereto shall have any complaint against the other or against the Trustee as a result of any such action taken.

 

SECTION 10.8.   Term of the Agreement.  This Agreement shall be in full force and effect from the date hereof until the right, title and interest of the Trustee in and to the Trust Estate (as defined in the Indenture) shall have ceased, terminated and become void in accordance with Article IX of the Indenture and until all payments required under this Agreement shall have been made.

 

SECTION 10.9.   No Personal Liability.  No covenant or agreement contained in this Agreement shall be deemed to be the covenant or agreement of any official, officer, agent, or employee of the Issuer in his individual capacity, and no such person shall be subject to any personal liability or accountability by reason of the issuance thereof.

 

SECTION 10.10.   Parties in Interest.  This Agreement shall inure to the benefit of and shall be binding upon the Issuer, the Company, the Trustee and their respective successors and assigns, and no other person, firm or corporation shall have any right, remedy or claim under or by reason of this Agreement; provided, however, that any monetary obligation of the Issuer created by or arising out of this Agreement shall be payable solely out of the Revenues and shall not constitute, and no breach of this Agreement by the Issuer shall impose, a pecuniary liability upon the Issuer or a charge upon the Issuer’s general credit.

 

IN WITNESS WHEREOF, the Issuer and the Company have caused this Agreement to be signed on their behalf by their duly authorized representatives as of the date set forth above.

 

LOUISIANA PUBLIC FACILITIES AUTHORITY

By: /s/ Guy Campbell, III

   Chairman

ATTEST:

By: James W. Parks

        Assistant Secretary                                                                                                                     [SEAL]

WITNESSES:

/s/ Sharon A. Penning

/s/ Jacob S. Capraro

ENTERGY LOUISIANA, LLC

By: /s/ Frank Williford

       Assistant Treasurer

WITNESSES:

/s/ Leah W. Dawsey

/s/ Shannon K. Ryersona075104c.htm

Exhibit 4(c)

ENTERGY LOUISIANA, LLC

(successor to Entergy Louisiana, Inc.)

TO

THE BANK OF NEW YORK MELLON

 

(formerly The Bank of New York)

(successor to Harris Trust Company of New York)

 

 

 

 

As Trustee under Entergy Louisiana, LLC’s Mortgage and Deed of Trust

dated as of April 1, 1944

 

 

________________

 

 

Sixty-ninth Supplemental Indenture

 

 

 

Providing among other things for

 

 

 

First Mortgage Bonds, Environmental Series H

(Seventy-fourth Series)

 

 

 

 

Dated as of October 1, 2010

 

 

SIXTY-NINTH SUPPLEMENTAL INDENTURE

 

 

Indenture, dated as of October 1, 2010, between ENTERGY LOUISIANA, LLC, a limited liability company of the State of Texas (hereinafter sometimes called the “Company”), successor to ENTERGY LOUISIANA, INC., a corporation of the State of Louisiana converted to a corporation of the State of Texas on December 31, 2005 (hereinafter sometimes called the “Louisiana Company”), which was the successor by merger to LOUISIANA POWER & LIGHT COMPANY, a corporation of the State of Florida (hereinafter sometimes called the “Florida Company”), whose post office address is 446 North Boulevard, Baton Rouge, Louisiana 70802, and THE BANK OF NEW YORK MELLON, a New York banking corporation (successor to HARRIS TRUST COMPANY OF NEW YORK) whose principal office is located at 101 Barclay Street, New York, New York 10286 (hereinafter sometimes called “Trustee”), as Trustee under the Mortgage and Deed of Trust, dated as of April 1, 1944 (hereinafter called the “Mortgage”), which Mortgage was executed and delivered by the Florida Company to secure the payment of bonds issued or to be issued under and in accordance with the provisions of the Mortgage, reference to which Mortgage is hereby made, this Indenture (hereinafter called the “Sixty-ninth Supplemental Indenture”) being supplemental thereto;

 

 

WHEREAS, the Mortgage was recorded in various Parishes in the State of Louisiana, which Parishes are the same Parishes in which this Sixty-ninth Supplemental Indenture is to be recorded; and

 

 

WHEREAS, by the Mortgage, the Florida Company covenanted that it would execute and deliver such supplemental indenture or indentures and such further instruments and do such further acts as might be necessary or proper to carry out more effectually the purposes of the Mortgage and to make subject to the lien of the Mortgage any property thereafter acquired and intended to be subject to the lien thereof; and

 

 

WHEREAS, the Florida Company executed and delivered the following supplemental indentures:

 

	
Designation

	
Dated as of

	
First Supplemental Indenture

	
March 1, 1948

	
Second Supplemental Indenture

	
November 1, 1950

	
Third Supplemental Indenture

	
September 1, 1953

	
Fourth Supplemental Indenture

	
October 1, 1954

	
Fifth Supplemental Indenture

	
January 1, 1957

	
Sixth Supplemental Indenture

	
April 1, 1960

	
Seventh Supplemental Indenture

	
June 1, 1964

	
Eighth Supplemental Indenture

	
March 1, 1966

	
Ninth Supplemental Indenture

	
February 1, 1967

	
Tenth Supplemental Indenture

	
September 1, 1967

	
Eleventh Supplemental Indenture

	
March 1, 1968

	
Twelfth Supplemental Indenture

	
June 1, 1969

	
Thirteenth Supplemental Indenture

	
December 1, 1969

	
Fourteenth Supplemental Indenture

	
November 1, 1970

	
Fifteenth Supplemental Indenture

	
April 1, 1971

	
Sixteenth Supplemental Indenture

	
January 1, 1972

	
Seventeenth Supplemental Indenture

	
November 1, 1972

	
Eighteenth Supplemental Indenture

	
June 1, 1973

	
Nineteenth Supplemental Indenture

	
March 1, 1974

	
Twentieth Supplemental Indenture

	
November 1, 1974

 

which supplemental indentures were recorded in various Parishes in the State of Louisiana; and

 

 

WHEREAS, the Florida Company was merged into the Louisiana Company on February 28, 1975, and the Louisiana Company thereupon executed and delivered a Twenty-first Supplemental Indenture, dated as of March 1, 1975, pursuant to which the Louisiana Company, among other things, assumed and agreed duly and punctually to pay the principal of and interest on the bonds at the time issued and outstanding under the Mortgage, as then supplemented, in accordance with the provisions of said bonds and of any appurtenant coupons and of the Mortgage as so supplemented, and duly and punctually to observe, perform and fulfill all of the covenants and conditions of the Mortgage, as so supplemented, to be kept or performed by the Florida Company, and said Twenty-first Supplemental Indenture was recorded in various Parishes in the State of Louisiana; and

 

 

WHEREAS, the Louisiana Company has succeeded to and has been substituted for the Florida Company under the Mortgage with the same effect as if it had been named as mortgagor corporation therein; and

 

 

WHEREAS, the Louisiana Company executed and delivered the following supplemental indentures:

 

	
Designation

	
Dated as of

	
Twenty-second Supplemental Indenture

	
September 1, 1975

	
Twenty-third Supplemental Indenture

	
December 1, 1976

	
Twenty-fourth Supplemental Indenture

	
January 1, 1978

	
Twenty-fifth Supplemental Indenture

	
July 1, 1978

	
Twenty-sixth Supplemental Indenture

	
May 1, 1979

	
Twenty-seventh Supplemental Indenture

	
November 1, 1979

	
Twenty-eighth Supplemental Indenture

	
December 1, 1980

	
Twenty-ninth Supplemental Indenture

	
April 1, 1981

	
Thirtieth Supplemental Indenture

	
December 1, 1981

	
Thirty-first Supplemental Indenture

	
March 1, 1983

	
Thirty-second Supplemental Indenture

	
September 1, 1983

	
Thirty-third Supplemental Indenture

	
August 1, 1984

	
Thirty-fourth Supplemental Indenture

	
November 1, 1984

	
Thirty-fifth Supplemental Indenture

	
December 1, 1984

	
Thirty-sixth Supplemental Indenture

	
December 1, 1985

	
Thirty-seventh Supplemental Indenture

	
April 1, 1986

	
Thirty-eighth Supplemental Indenture

	
November 1, 1986

	
Thirty-ninth Supplemental Indenture

	
May 1, 1988

	
Fortieth Supplemental Indenture

	
December 1, 1988

	
Forty-first Supplemental Indenture

	
April 1, 1990

	
Forty-second Supplemental Indenture

	
June 1, 1991

	
Forty-third Supplemental Indenture

	
April 1, 1992

	
Forty-fourth Supplemental Indenture

	
July 1, 1992

	
Forty-fifth Supplemental Indenture

	
December 1, 1992

	
Forty-sixth Supplemental Indenture

	
March 1, 1993

	
Forty-seventh Supplemental Indenture

	
May 1, 1993

	
Forty-eighth Supplemental Indenture

	
December 1, 1993

	
Forty-ninth Supplemental Indenture

	
July 1, 1994

	
Fiftieth Supplemental Indenture

	
September 1, 1994

	
Fifty-first Supplemental Indenture

	
March 1, 1996

	
Fifty-second Supplemental Indenture

	
March 1, 1998

	
Fifty-third Supplemental Indenture

	
March 1, 1999

	
Fifty-fourth Supplemental Indenture

	
June 1, 1999

	
Fifty-fifth Supplemental Indenture

	
May 15, 2000

	
Fifty-sixth Supplemental Indenture

	
March 1, 2002

	
Fifty-seventh Supplemental Indenture

	
March 1, 2004

	
Fifty-eighth Supplemental Indenture

	
October 1, 2004

	
Fifty-ninth Supplemental Indenture

	
October 15, 2004

	
Sixtieth Supplemental Indenture

	
May 1, 2005

	
Sixty-first Supplemental Indenture

	
August 1, 2005

	
Sixty-second Supplemental Indenture

	
October 1, 2005

	
Sixty-third Supplemental Indenture

	
December 15, 2005

 

which supplemental indentures were recorded in various Parishes in the State of Louisiana; and

 

WHEREAS, the Louisiana Company converted into a Texas limited liability company and, pursuant to a Plan of Merger by which the Company and Entergy Louisiana Properties, LLC were created (the “Merger Documents”), underwent a merger by division pursuant to which, among other things, all the Mortgaged and Pledged Property, subject to the Lien of the Mortgage, and all of the rights, obligations and duties of the Louisiana Company under the Mortgage, were allocated to the Company on December 31, 2005, and the Company thereupon executed and delivered a Sixty-fourth Supplemental Indenture, effective as of January 1, 2006, pursuant to which the Company, among other things, assumed and agreed duly and punctually to pay the principal of and interest on the bonds at the time issued and outstanding under the Mortgage, as then supplemented, in accordance with the provisions of said bonds and of any appurtenant coupons and of the Mortgage as so supplemented, and duly and punctually to observe, perform and fulfill all of the covenants and conditions of the Mortgage, as so supplemented, to be kept or performed by the Louisiana Company, and said Sixty-fourth Supplemental Indenture was recorded in various Parishes in the State of Louisiana; and

 

 

WHEREAS, effective July 1, 2008, The Bank of New York changed its name to The Bank of New York Mellon; and

 

 

WHEREAS, the Company executed and delivered the following supplemental indentures:

 

	
Designation

	
Dated as of

	
Sixty-fifth Supplemental Indenture

	
August 1, 2008

	
Sixty-sixth Supplemental Indenture

	
November 1, 2009

	
Sixty-seventh Supplemental Indenture

	
March 1, 2010

	
Sixty-eighth Supplemental Indenture

	
September 1, 2010

 

which supplemental indentures were recorded in various Parishes in the State of Louisiana and with the Secretary of State of Texas; and

 

 

WHEREAS, in addition to the property described in the Mortgage, as supplemented, the Company has acquired certain other property, rights and interests in property; and

 

 

WHEREAS, the Florida Company or the Louisiana Company has heretofore issued, in accordance with the provisions of the Mortgage, as supplemented, the following series of bonds:

 

	
Series

	
Principal

Amount

Issued

	
Principal

Amount

Outstanding

	
3% Series due 1974

	
$ 17,000,000

	
None

	
3 1/8% Series due 1978

	
10,000,000

	
None

	
3% Series due 1980

	
10,000,000

	
None

	
4% Series due 1983

	
12,000,000

	
None

	
3 1/8% Series due 1984

	
18,000,000

	
None

	
4 3/4% Series due 1987

	
20,000,000

	
None

	
5% Series due 1990

	
20,000,000

	
None

	
4 5/8% Series due 1994

	
25,000,000

	
None

	
5 3/4% Series due 1996

	
35,000,000

	
None

	
5 5/8% Series due 1997

	
16,000,000

	
None

	
6 1/2% Series due September 1, 1997

	
18,000,000

	
None

	
7 1/8% Series due 1998

	
35,000,000

	
None

	
9 3/8% Series due 1999

	
25,000,000

	
None

	
9 3/8% Series due 2000

	
20,000,000

	
None

	
7 7/8% Series due 2001

	
25,000,000

	
None

	
7 1/2% Series due 2002

	
25,000,000

	
None

	
7 1/2% Series due November 1, 2002

	
25,000,000

	
None

	
8% Series due 2003

	
45,000,000

	
None

	
8 3/4% Series due 2004

	
45,000,000

	
None

	
9 1/2% Series due November 1, 1981

	
50,000,000

	
None

	
9 3/8% Series due September 1, 1983

	
50,000,000

	
None

	
8 3/4% Series due December 1, 2006

	
40,000,000

	
None

	
9% Series due January 1, 1986

	
75,000,000

	
None

	
10% Series due July 1, 2008

	
60,000,000

	
None

	
10 7/8% Series due May 1, 1989

	
45,000,000

	
None

	
13 1/2% Series due November 1, 2009

	
55,000,000

	
None

	
15 3/4% Series due December 1, 1988

	
50,000,000

	
None

	
16% Series due April 1, 1991

	
75,000,000

	
None

	
16 1/4% Series due December 1, 1991

	
100,000,000

	
None

	
12% Series due March 1, 1993

	
100,000,000

	
None

	
13 1/4% Series due March 1, 2013

	
100,000,000

	
None

	
13% Series due September 1, 2013

	
50,000,000

	
None

	
16% Series due August 1, 1994

	
100,000,000

	
None

	
14 3/4% Series due November 1, 2014

	
55,000,000

	
None

	
15 1/4% Series due December 1, 2014

	
35,000,000

	
None

	
14% Series due December 1, 1992

	
60,000,000

	
None

	
14 1/4% Series due December 1, 1995

	
15,000,000

	
None

	
10 1/2% Series due April 1, 1993

	
200,000,000

	
None

	
10 3/8% Series due November 1, 2016

	
280,000,000

	
None

	
Series 1988A due September 30, 1988

	
13,334,000

	
None

	
Series 1988B due September 30, 1988

	
10,000,000

	
None

	
Series 1988C due September 30, 1988

	
6,667,000

	
None

	
10.36% Series due December 1, 1995

	
75,000,000

	
None

	
10 1/8% Series due April 1, 2020

	
100,000,000

	
None

	
Environmental Series A due June 1, 2021

	
52,500,000

	
None

	
Environmental Series B due April 1, 2022

	
20,940,000

	
None

	
7.74% Series due July 1, 2002

	
179,000,000

	
None

	
8 1/2% Series due July 1, 2022

	
90,000,000

	
None

	
Environmental Series C due December 1, 2022

	
25,120,000

	
None

	
6% Series due March 1, 2000

	
100,000,000

	
None

	
Environmental Series D due May 1, 2023

	
34,364,000

	
None

	
Environmental Series E due December 1,2023

	
25,991,667

	
None

	
Environmental Series F due July 1, 2024

	
21,335,000

	
None

	
Collateral Series 1994-A, due July 2, 2017

	
117,805,000

	
$117,805,000*

	
Collateral Series 1994-B, due July 2, 2017

	
58,865,000

	
58,865,000*

	
Collateral Series 1994-C, due July 2, 2017

	
31,575,000

	
31,575,000*

	
8 3⁄4% Series due March 1, 2026

	
115,000,000

	
None

	
6 1⁄2% Series due March 1, 2008

	
115,000,000

	
None

	
5.80% Series due March 1, 2002

	
75,000,000

	
None

	
Environmental Series G due June 1, 2030

	
67,200,000

	
67,200,000**

	
8 1⁄2% Series due June 1, 2003

	
150,000,000

	
None

	
7.60% Series due April 1, 2032

	
150,000,000

	
None

	
5.5% Series due April 1, 2019

	
100,000,000

	
100,000,000

	
6.4% Series due October 1, 2034

	
70,000,000

	
70,000,000

	
5.09% Series due November 1, 2014

	
115,000,000

	
115,000,000

	
4.67% Series due June 1, 2010

	
55,000,000

	
None

	
5.56% Series due September 1, 2015

	
100,000,000

	
100,000,000

	
6.3% Series due September 1, 2035

	
100,000,000

	
100,000,000

	
5.83% Series due November 1, 2010

	
150,000,000

	
150,000,000

	
6.50% Series due September 1, 2018

	
300,000,000

	
300,000,000

	
5.40% Series due November 1, 2024

	
400,000,000

	
400,000,000

	
6.0% Series due March 15, 2040

	
150,000,000

	
150,000,000

	
4.44% Series due January 15, 2026

	
250,000,000

	
250,000,000

 

 

*  All of which provide equity support for the Owner-Participants in the Waterford 3 Sale-Leaseback transaction and bear no interest.

  

**All of which is currently held by the Trustee for the benefit of the Company as holder of the $60,000,000 in aggregate principal amount of Parish of St. Charles, State of Louisiana Pollution Control Revenue Refunding Bonds (Entergy Louisiana, Inc. Project) Series 1999-B for which they provide support.

 

 

 

which bonds are also hereinafter sometimes called bonds of the First through Seventy-third Series, respectively; and

 

 

WHEREAS, Section 8 of the Mortgage provides that the form of each series of bonds (other than the First Series) issued thereunder and of the coupons to be attached to coupon bonds of such series shall be established by Resolution of the Board of Directors of the Company and that the form of such series, as established by said Board of Directors, shall specify the descriptive title of the bonds and various other terms thereof, and may also contain such provisions not inconsistent with the provisions of the Mortgage as the Board of Directors may, in its discretion, cause to be inserted therein expressing or referring to the terms and conditions upon which such bonds are to be issued and/or secured under the Mortgage; and

 

 

WHEREAS, Section 120 of the Mortgage provides, among other things, that any power, privilege or right expressly or impliedly reserved to or in any way conferred upon the Company by any provision of the Mortgage, whether such power, privilege or right is in any way restricted or is unrestricted, may be in whole or in part waived or surrendered or subjected to any restriction if at the time unrestricted or to additional restrictions if already restricted, and the Company may enter into any further covenants, limitations or restrictions for the benefit of any one or more series of bonds issued thereunder, or the Company may cure any ambiguity contained therein, or in any supplemental indenture, or may establish the terms and provisions of any series of bonds (other than the First Series) by an instrument in writing executed and acknowledged by the Company in such manner as would be necessary to entitle a conveyance of real estate to record in all of the states in which any property at the time subject to the lien of the Mortgage shall be situated; and

 

 

WHEREAS, the Company now desires to create a new series of bonds and to add to its covenants and agreements contained in the Mortgage, as heretofore supplemented, certain other covenants and agreements to be observed by it and to alter and amend in certain respects the covenants and provisions contained in the Mortgage, as heretofore supplemented; and

 

 

WHEREAS, the execution and delivery by the Company of this Sixty-ninth Supplemental Indenture, and the terms of the bonds of the Seventy-fourth Series, hereinafter referred to, have been duly authorized by the Board of Directors of the Company by appropriate Resolutions of said Board of Directors;

 

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

 

That the Company, in consideration of the premises and of One Dollar to it duly paid by the Trustee at or before the ensealing and delivery of these presents, the receipt whereof is hereby acknowledged, and in further evidence of assurance of the estate, title and rights of the Trustee and in order further to secure the payment both of the principal of and interest and premium, if any, on the bonds from time to time issued under the Mortgage, according to their tenor and effect and the performance of all the provisions of the Mortgage (including any instruments supplemental thereto and any modification made as in the Mortgage provided) and of said bonds, hereby grants, bargains, sells, releases, conveys, assigns, transfers, mortgages, hypothecates, affects, pledges, sets over and confirms (subject, however, to Excepted Encumbrances as defined in Section 6 of the Mortgage) unto The Bank of New York Mellon, as Trustee under the Mortgage, and to its successor or successors in said trust, and to said Trustee and its successors and assigns forever, (a) all of the Mortgaged and Pledged Property acquired by the Company from the Louisiana Company pursuant to the allocations in the Merger Documents, and improvements, extensions and additions thereto and renewals and replacements thereof, (b) the property made and used by the Company as the basis under any of the provisions of the Mortgage, as supplemented, for the authentication and delivery of additional bonds or the withdrawal of cash or the release of property or a credit under Section 39 of the Mortgage, and (c) such franchises, repairs and additional property as may be acquired, made or constructed by the Company (1) to maintain, renew and preserve the franchises covered by this Mortgage, as supplemented, or (2) to maintain the property mortgaged and intended to be mortgaged under the Mortgage, as supplemented, as an operating system or systems in good repair, working order and condition, or (3) in rebuilding or renewal of property, subject to the Lien of the Mortgage, as supplemented, damaged or destroyed, or (4) in replacement of or substitution for machinery, apparatus, equipment, frames, towers, poles, wire, pipe, tools, implements and furniture, subject to the Lien of the Mortgage, as supplemented, which shall have become old, inadequate, obsolete, worn out, unfit, unadapted, unserviceable, undesirable or unnecessary for use in the operation of the property mortgaged and intended to be mortgaged under the Mortgage, as supplemented.

 

 

TO HAVE AND TO HOLD ALL such properties, real, personal and mixed, granted, bargained, sold, released, conveyed, assigned, transferred, mortgaged, hypothecated, affected, pledged, set over or confirmed by the Company as aforesaid, or intended so to be, unto The Bank of New York Mellon, as Trustee, and its successors and assigns forever.

 

 

IN TRUST NEVERTHELESS, for the same purposes and upon the same terms, trusts and conditions and subject to and with the same provisos and covenants as are set forth in the Mortgage, as supplemented, this Sixty-ninth Supplemental Indenture being supplemental thereto.

 

 

AND IT IS HEREBY COVENANTED by the Company that all the terms, conditions, provisos, covenants and provisions contained in the Mortgage, as supplemented, shall affect and apply to the property hereinbefore described and conveyed and to the estate, rights, obligations and duties of the Company and the Trustee and the beneficiaries of the trust with respect to said property, and to the Trustee and its successors as Trustee of said property in the same manner and with the same effect as if said property had been owned by the Florida Company at the time of the execution of the Mortgage, and had been specifically and at length described in and conveyed to said Trustee by the Mortgage as a part of the property therein stated to be conveyed.

 

 

The Company further covenants and agrees to and with the Trustee and its successor or successors in said trust under the Mortgage as follows:

 

 

ARTICLE I

 

SEVENTY-FOURTH SERIES BONDS

 

SECTION 1.  There shall be a series of bonds designated "Environmental Series H" (herein sometimes called the "Seventy-fourth Series"), each of which shall also bear the descriptive title "First Mortgage Bond", and the form thereof, which shall be established by Resolution of the Board of Directors of the Company, shall contain suitable provisions with respect to the matters hereinafter in this Section specified. Bonds of the Seventy-fourth Series (which shall be limited in aggregate principal amount to $119,073,000 shall mature on June 1, 2030, shall be issued as fully registered bonds in the denomination of One Thousand Dollars and such other denominations as the officers of the Company shall determine to issue (such determination to be evidenced by the execution and delivery thereof), shall be dated as in Section 10 of the Mortgage provided, and the principal of, and, to the extent permitted by the Mortgage, interest on any overdue principal of, each said bond shall be payable at the office or agency of the Company in the Borough of Manhattan, The City of New York, in such coin or currency of the United States of America as at the time of payment is legal tender for public and private debts.

(I) The bonds of the Seventy-fourth Series shall be issued and delivered to, and registered in the name of, The Bank of New York Mellon Trust Company, N.A. (the “LPFA Trustee”), the trustee under the Trust Indenture, dated as of October 1, 2010 (hereinafter called the "LPFA Indenture"), of the Louisiana Public Facilities Authority (hereinafter called the "LPFA"), relating to its 5% Revenue Bonds (Entergy Louisiana, LLC Project) Series 2010 (hereinafter called the "LPFA Bonds"), in order to evidence the Company's obligation to make certain payments under the Loan Agreement, dated as of October 1, 2010, between the LPFA and the Company (the "Loan Agreement").

The obligation of the Company to make any payment of principal of or interest on the bonds of the Seventy-fourth Series, whether at maturity, upon redemption or otherwise, shall be reduced by the amount of any reduction under the LPFA Indenture of the amount of the corresponding payment required to be made by the LPFA thereunder in respect of the principal of, or premium, if any, or interest on the LPFA Bonds, so that the aggregate principal amount of the bonds of the Seventy-fourth Series held by the LPFA Trustee after such reduction is as close as possible to, but not less than, the sum of the aggregate principal amount of the LPFA Bonds then outstanding plus eight and one-half months of the annual interest on such LPFA Bonds.

The Trustee may conclusively presume that the obligation of the Company to pay the principal of the bonds of the Seventy-fourth Series as the same shall become due and payable shall have been fully satisfied and discharged unless and until the Trustee shall have received a written notice (which may be a facsimile followed by a hard copy) from the LPFA Trustee, signed by its President, a Vice President or a Trust Officer, stating that the corresponding payment of principal of or interest on the LPFA Bonds has become due and payable and has not been fully paid and specifying the amount of funds required to make such payment.

(II) In the event that the LPFA Bonds outstanding under the LPFA Indenture shall become immediately due and payable pursuant to Section 10.2 of the LPFA Indenture, upon the occurrence of an Event of Default under Section 10.1 (a), (b) or (e) of the LPFA Indenture, all bonds of the Seventy-fourth Series, then outstanding, shall be redeemed by the Company, on the date such LPFA Bonds shall have become immediately due and payable, at a redemption price of 100% of the principal amount thereof. In the event that any LPFA Bonds are to be redeemed pursuant to Article III of the LPFA Indenture, bonds of the Seventy-fourth Series, in a principal amount equal, as nearly as practicable, to the sum of (i) the principal amount of such LPFA Bonds being redeemed, and (ii) eight and one-half months of the annual interest due on such LPFA Bonds being redeemed shall be redeemed by the Company, on the date fixed for redemption of such LPFA Bonds, at a redemption price of 100% of the principal amount thereof. The Trustee may conclusively presume that no redemption of bonds of the Seventy-fourth Series is required pursuant to this subsection (II) unless and until the Trustee shall have received a written notice (which may be a facsimile followed by a hard copy) from the LPFA Trustee, signed by its President, a Vice President or a Trust Officer, stating that, as the case may be, the LPFA Bonds have become immediately due and payable pursuant to Section 10.2 of the LPFA Indenture, upon the occurrence of an Event of Default under Section 10.1 (a), (b) or (e) of the LPFA Indenture, or that the LPFA Bonds (or any portion thereof) are to be redeemed pursuant to Article III of the LPFA Indenture and specifying the date fixed for the redemption and the principal amount thereof. Said notice shall also contain a waiver of notice of such redemption by the LPFA Trustee, as the holder of all the bonds of the Seventy-fourth Series then outstanding.  As a condition to any redemption pursuant to this subsection (II), the LPFA Trustee is required to present the bonds of the Seventy-fourth Series to the Trustee for payment.

(III) The Company hereby waives its right to have any notice of any redemption pursuant to subsection (II) of this Section 1 state that such notice is subject to the receipt of the redemption moneys by the Trustee before the date fixed for redemption. Notwithstanding the provisions of Section 52 of the Mortgage, any such notice under such subsection shall not be conditional.

(IV) At the option of the registered owner, any bonds of the Seventy-fourth Series, upon surrender thereof for cancellation at the office or agency of the Company in the Borough of Manhattan, The City of New York, together with a written instrument of transfer wherever required by the Company, duly executed by the registered owner or by his duly authorized attorney, shall (subject to the provisions of Section 12 of the Mortgage) be exchangeable for a like aggregate principal amount of bonds of the Seventy-fourth Series of other authorized denominations. Bonds of the Seventy-fourth Series shall not be transferable except to any successor trustee under the LPFA Indenture, any such transfer to be made (subject to the provisions of Section 12 of the Mortgage) at the office or agency of the Company in the Borough of Manhattan, The City of New York. The Company hereby waives any right to make a charge for any exchange or transfer of bonds of the Seventy-fourth Series.

(V) The bonds of the Seventy-fourth Series may bear such legends as may be necessary to comply with any law or with any rules or regulations made pursuant thereto or with the rules or regulations of any stock exchange or to conform to usage with respect thereto.

 

ARTICLE II

 

MISCELLANEOUS PROVISIONS

 

 

SECTION 1.  Subject to any amendments provided for in this Sixty-ninth Supplemental Indenture, the terms defined in the Mortgage, as heretofore supplemented, shall, for all purposes of this Sixty-ninth Supplemental Indenture, have the meanings specified in the Mortgage, as heretofore supplemented.

 

 

SECTION 2.  The Trustee hereby accepts the trusts herein declared, provided, created or supplemented and agrees to perform the same upon the terms and conditions herein and in the Mortgage, as heretofore amended, set forth and upon the following terms and conditions:

 

 

The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Sixty-ninth Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made by the Company solely. In general, each and every term and condition contained in Article XVII of the Mortgage, as heretofore amended, shall apply to and form part of this Sixty-ninth Supplemental Indenture with the same force and effect as if the same were herein set forth in full with such omissions, variations and insertions, if any, as may be appropriate to make the same conform to the provisions of this Sixty-ninth Supplemental Indenture.

 

 

SECTION 3.  Whenever in this Sixty-ninth Supplemental Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles XVI and XVII of the Mortgage, as heretofore amended, be deemed to include the successors and assigns of such party, and all covenants and agreements in this Sixty-ninth 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 4.  Nothing in this Sixty-ninth Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or give to, any person, firm or corporation, other than the parties hereto and the holders of the bonds and coupons Outstanding under the Mortgage, any right, remedy or claim under or by reason of this Sixty-ninth Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Sixty-ninth 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 the bonds and coupons Outstanding under the Mortgage.

 

 

SECTION 5.  It is the intention and it is hereby agreed that, so far as concerns that portion of the Mortgaged and Pledged Property situated within the State of Louisiana, the general language of conveyance contained in this Sixty-ninth Supplemental Indenture is intended and shall be construed as words of hypothecation and not of conveyance, and that, so far as the said Louisiana property is concerned, this Sixty-ninth Supplemental Indenture shall be considered as an act of mortgage and pledge under the laws of the State of Louisiana, and the Trustee herein named is named as mortgagee and pledgee in trust for the benefit of itself and of all present and future holders of bonds and coupons issued and to be issued under the Mortgage, and is irrevocably appointed special agent and representative of the holders of the bonds and coupons issued and to be issued under the Mortgage and vested with full power in their behalf to effect and enforce the mortgage and pledge hereby constituted for their benefit, or otherwise to act as herein provided for.

 

 

SECTION 6.  This Sixty-ninth Supplemental Indenture shall be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.

 

 

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IN WITNESS WHEREOF, ENTERGY LOUISIANA, LLC has caused its company name to be hereunto affixed, and this instrument to be signed and sealed by its President or one of its Vice Presidents, and its company seal to be attested by its Secretary or one of its Assistant Secretaries, for and in its behalf, and THE BANK OF NEW YORK MELLON, in token of its acceptance of the trust hereby created, has caused its corporate name to be hereunto affixed, and this instrument to be signed and sealed by one of its Vice Presidents or Assistant Vice Presidents and its corporate seal to be attested by one of its Vice Presidents, Assistant Vice Presidents or Assistant Treasurers, all as of the day and year first above written.

 

 

ENTERGY LOUISIANA, LLC

 

 

 

 

 

 

 

 

By: /s/ Steven C. McNeal

Name: Steven C. McNeal

Title: Vice President and Treasurer

 

Attest:

By: /s/ Dawn A. Abuso

Name: Dawn A. Abuso

Title:   Assistant Secretary

Executed, sealed and delivered by

ENTERGY LOUISIANA, LLC

in the presence of:

/s/ Leah W. Dawsey

Name: Leah W. Dawsey

 

 

 

 

 

/s/ Shannon K. Ryerson

Name: Shannon K. Ryerson

 

 

THE BANK OF NEW YORK MELLON

As Successor Trustee

 

 

 

 

 

 

By: /s/ Scott I. Klein

Name: Scott I. Klein

Title: Vice President

 

 

 

 

Attest:

By: /s/ Laurence J. O’Brien

Name: Laurence J. O’Brien

Title: Vice President

 

 

 

Executed, sealed and delivered by

THE BANK OF NEW YORK MELLON

in the presence of:

 

 

/s/ Sherma Thomas

Name: Sherma Thomas

 

 

/s/ Latoya Elvin

Name: Latoya Elvin

 

 

STATE OF LOUISIANA

                                                    } ss.:

PARISH OF ORLEANS

 

 

On this 30th day of September, 2010, before me appeared STEVEN C. MCNEAL, to me personally known, who, being by me duly sworn, did say that he is Vice President and Treasurer of ENTERGY LOUISIANA, LLC, and that the seal affixed to the above instrument is the seal of said entity and that said instrument was signed and sealed in behalf of said entity by authority of its Board of Directors, and said STEVEN C. MCNEAL, acknowledged said instrument to be the free act and deed of said entity.

 

 

On the 30th day of September, 2010 before me personally came STEVEN C. MCNEAL, to me known, who, being by me duly sworn, did depose and say that he resides at 7903 Winner’s Circle, Mandeville, Louisiana 70448; that he is Vice President and Treasurer of ENTERGY LOUISIANA, LLC, one of the entities described in and which executed the above instrument; that he knows the seal of said entity; that the seal affixed to said instrument is such seal, that it was so affixed by order of the Board of Directors of said entity, and that he signed his name thereto by like order.

 

/s/ Jennifer B. Favalora

Jennifer B. Favalora

Notary Public

State of Louisiana

Notary Identification Number 57639

Commission Issued for Life

 

 

 

 

STATE OF NEW YORK

                                                            } ss.:

COUNTY OF NEW YORK

 

 

On this 30th day of September, 2010, before me appeared SCOTT I. KLEIN to me personally known, who, being by me duly sworn, did say that he is a Vice President of THE BANK OF NEW YORK MELLON, and that the seal affixed to the above instrument is the corporate seal of said entity and that said instrument was signed and sealed in behalf of said entity by authority of its Board of Directors, and said SCOTT I. KLEIN acknowledged said instrument to be the free act and deed of said entity.

 

 

On the 30th day of September, 2010, before me personally came SCOTT I. KLEIN, to me known, who, being by me duly sworn, did depose and say that he resides in Forest Hills, New York; that he is a Vice President of THE BANK OF NEW YORK MELLON, one of the entities described in and which executed the above instrument; that he knows the seal of said entity; that the seal affixed to said instrument is such seal, that it was so affixed by order of the Board of Directors of said entity, and that he signed his name thereto by like order.

 

/s/ Daniel C. Marcel

Name: Daniel C. Marcel

Notary Public, State of New York

Notary Public No. 01MA6220648

Qualified in Westchester County

Commission Expires April 19, 2014

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