Document:

exv10w60

 

Exhibit
10.60

EXECUTION COUNTERPART

BRIDGE LOAN AGREEMENT,

dated as of September 26, 2007,

ITC HOLDINGS CORP.,

as the Borrower,

VARIOUS FINANCIAL INSTITUTIONS AND OTHER

PERSONS FROM TIME TO TIME PARTIES HERETO,

as the Lenders,

LEHMAN COMMERCIAL PAPER INC.

as the Administrative Agent,

LEHMAN BROTHERS INC.

as Sole Lead Arranger and Sole Bookrunner

 

 

	 	 	 	 	 
	ARTICLE 1 DEFINITIONS	 	5
	 
	 	 	 	 
	1.1
	 	Defined Terms.	 	5
	 
	 	 	 	 
	1.2
	 	Accounting Terms; GAAP.	 	17
	 
	 	 	 	 
	ARTICLE 2 AMOUNT AND TERMS OF CREDIT	 	18
	 
	 	 	 	 
	2.1
	 	Commitments.	 	18
	 
	 	 	 	 
	2.2
	 	Minimum Amount of Each Borrowing; Maximum Number of Borrowings.	 	18
	 
	 	 	 	 
	2.3
	 	Notice of Borrowing.	 	18
	 
	 	 	 	 
	2.4
	 	Disbursement of Funds.	 	19
	 
	 	 	 	 
	2.5
	 	Repayment of Loans; Evidence of Debt.	 	20
	 
	 	 	 	 
	2.6
	 	Changes in Type of Loan.	 	20
	 
	 	 	 	 
	2.7
	 	Pro Rata Borrowings.	 	21
	 
	 	 	 	 
	2.8
	 	Interest and Fees.	 	21
	 
	 	 	 	 
	2.9
	 	LIBOR Periods.	 	22
	 
	 	 	 	 
	2.10
	 	Increased Costs, Illegality, etc.	 	23
	 
	 	 	 	 
	2.11
	 	Compensation.	 	25
	 
	 	 	 	 
	2.12
	 	Change of Lending Office.	 	25
	 
	 	 	 	 
	2.13
	 	Notice of Certain Costs.	 	26
	 
	 	 	 	 
	ARTICLE 3 FEES	 	26
	 
	 	 	 	 
	3.1
	 	Administrative Agent Fees.	 	26
	 
	 	 	 	 
	3.2
	 	Other Agreed Fees.	 	26
	 
	 	 	 	 
	ARTICLE 4 COMMITMENTS	 	26
	 
	 	 	 	 
	4.1
	 	Voluntary Reduction of Commitments.	 	26
	 
	 	 	 	 
	4.2
	 	Mandatory Termination of Commitments.	 	26
	 
	 	 	 	 
	ARTICLE 5 PAYMENTS	 	27
	 
	 	 	 	 
	5.1
	 	Prepayments.	 	27
	 
	 	 	 	 
	5.2
	 	Method and Place of Payment.	 	28
	 
	 	 	 	 
	5.3
	 	Net Payments.	 	28
	 
	 	 	 	 
	5.4
	 	Computations of Interest and Fees.	 	31
	 
	 	 	 	 
	ARTICLE 6 CONDITIONS PRECEDENT	 	31
	 
	 	 	 	 
	ARTICLE 7 REPRESENTATIONS AND WARRANTIES	 	33
	 
	 	 	 	 
	7.1
	 	Organizational Status.	 	33
	 
	 	 	 	 
	7.2
	 	Capacity, Power and Authority.	 	33
	 
	 	 	 	 
	7.3
	 	No Violation.	 	33
	 
	 	 	 	 

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	7.4
	 	Litigation.	 	34
	 
	 	 	 	 
	7.5
	 	Governmental Approvals.	 	34
	 
	 	 	 	 
	7.6
	 	True and Complete Disclosure.	 	34
	 
	 	 	 	 
	7.7
	 	Financial Condition; Financial Statements.	 	34
	 
	 	 	 	 
	7.8
	 	Tax Returns and Payments.	 	35
	 
	 	 	 	 
	7.9
	 	Environmental Matters.	 	35
	 
	 	 	 	 
	7.10
	 	Properties.	 	35
	 
	 	 	 	 
	7.11
	 	Pension and Welfare Plans.	 	35
	 
	 	 	 	 
	7.12
	 	Regulations U and X.	 	36
	 
	 	 	 	 
	7.13
	 	Investment Company Act.	 	36
	 
	 	 	 	 
	7.14
	 	No Material Adverse Change.	 	36
	 
	 	 	 	 
	7.15
	 	Deemed Repetition of Representations and Warranties.	 	36
	 
	 	 	 	 
	ARTICLE 8 AFFIRMATIVE COVENANTS	 	36
	 
	 	 	 	 
	8.1
	 	Information Covenants.	 	36
	 
	 	 	 	 
	8.2
	 	Books, Record and Inspections.	 	39
	 
	 	 	 	 
	8.3
	 	Maintenance of Insurance.	 	39
	 
	 	 	 	 
	8.4
	 	Payment of Taxes.	 	39
	 
	 	 	 	 
	8.5
	 	Organizational Existence.	 	39
	 
	 	 	 	 
	8.6
	 	Compliance with Statutes, Obligations, etc.	 	40
	 
	 	 	 	 
	8.7
	 	Good Repair.	 	40
	 
	 	 	 	 
	8.8
	 	Transactions with Affiliates.	 	40
	 
	 	 	 	 
	8.9
	 	End of Fiscal Years; Fiscal Quarters.	 	40
	 
	 	 	 	 
	8.10
	 	Use of Proceeds.	 	40
	 
	 	 	 	 
	8.11
	 	Changes in Business.	 	41
	 
	 	 	 	 
	ARTICLE 9 NEGATIVE COVENANTS	 	41
	 
	 	 	 	 
	9.1
	 	Limitation on Liens.	 	41
	 
	 	 	 	 
	9.2
	 	Limitation on Fundamental Changes.	 	42
	 
	 	 	 	 
	9.3
	 	Limitation on Dividends.	 	43
	 
	 	 	 	 
	9.4
	 	Financial Covenants.	 	44
	 
	 	 	 	 
	9.5
	 	Limitation on Sale-Lease Back Transactions.	 	44
	 
	 	 	 	 
	ARTICLE 10 EVENTS OF DEFAULT	 	44
	 
	 	 	 	 
	10.1
	 	Payments.	 	44
	 
	 	 	 	 
	10.2
	 	Representations, etc.	 	44
	 
	 	 	 	 

ii 

 

	 	 	 	 	 
	10.3
	 	Covenants.	 	44
	 
	 	 	 	 
	10.4
	 	Default Under Other Agreements.	 	45
	 
	 	 	 	 
	10.5
	 	Bankruptcy, etc.	 	45
	 
	 	 	 	 
	10.6
	 	Non-ownership of Material Subsidiaries.	 	46
	 
	 	 	 	 
	10.7
	 	Judgments.	 	46
	 
	 	 	 	 
	10.8
	 	Change of Ownership.	 	46
	 
	 	 	 	 
	10.9
	 	Pension Plans.	 	46
	 
	 	 	 	 
	10.10
	 	Remedies.	 	46
	 
	 	 	 	 
	10.11
	 	Remedies Cumulative.	 	47
	 
	 	 	 	 
	ARTICLE 11 THE ADMINISTRATIVE AGENT	 	47
	 
	 	 	 	 
	ARTICLE 12 MISCELLANEOUS	 	49
	 
	 	 	 	 
	12.1
	 	Amendments and Waivers.	 	49
	 
	 	 	 	 
	12.2
	 	Notices.	 	50
	 
	 	 	 	 
	12.3
	 	No Waiver; Cumulative Remedies.	 	51
	 
	 	 	 	 
	12.4
	 	Survival of Representations and Warranties.	 	51
	 
	 	 	 	 
	12.5
	 	Payment of Expenses and Taxes.	 	51
	 
	 	 	 	 
	12.6
	 	Successors and Assigns; Participations and Assignments.	 	53
	 
	 	 	 	 
	12.7
	 	Replacements of Lenders under Certain Circumstances.	 	55
	 
	 	 	 	 
	12.8
	 	Set-off, Etc.	 	56
	 
	 	 	 	 
	12.9
	 	Marshalling; Payments Set Aside.	 	57
	 
	 	 	 	 
	12.10
	 	Counterparts.	 	57
	 
	 	 	 	 
	12.11
	 	Severability.	 	57
	 
	 	 	 	 
	12.12
	 	Integration.	 	57
	 
	 	 	 	 
	12.13
	 	Governing Law.	 	57
	 
	 	 	 	 
	12.14
	 	Submission to Jurisdiction; Waivers.	 	58
	 
	 	 	 	 
	12.15
	 	Acknowledgements.	 	58
	 
	 	 	 	 
	12.16
	 	Waivers of Jury Trial.	 	59
	 
	 	 	 	 
	12.17
	 	Confidentiality.	 	59
	 
	 	 	 	 
	12.18
	 	Treatment of Loans.	 	59
	 
	 	 	 	 

iii 

 

	 	 	 	 	 
	 
	 	 	 	 
	SCHEDULES:
	 	 	 	 
	 
	 	 	 	 
	Schedule I
	 	Commitments	 	 
	Schedule II
	 	Environmental Matters	 	 
	Schedule III
	 	Pension and Welfare Matters	 	 
	Schedule IV
	 	Outstanding Liens on Closing Date	 	 
	 
	 	 	 	 
	EXHIBITS:
	 	 	 	 
	 
	 	 	 	 
	Exhibit A
	 	Form of Notice of Borrowing	 	 
	Exhibit B
	 	Form of Notice of Continuation	 	 
	Exhibit C
	 	Form of Closing Certificate	 	 
	Exhibit D
	 	Form of Compliance Certificate	 	 

iv 

 

          BRIDGE LOAN AGREEMENT, dated as of September 26, 2007, among ITC HOLDINGS CORP., a Michigan
corporation (the “Borrower”), various financial institutions and other Persons from time to time
parties hereto as lenders (each a “Lender” and, collectively, the “Lenders”) and LEHMAN COMMERCIAL
PAPER INC., as administrative agent (in such capacity, the “Administrative Agent”).

          The Borrower has requested that the Lenders make senior term loans to it in an aggregate
principal amount not exceeding $765,000,000. The Lenders are prepared to make such loans upon the
terms and conditions hereof, and, accordingly, the parties hereto agree as follows:

ARTICLE 1

DEFINITIONS

          As used herein, the following terms shall have the meanings specified in this Article 1 unless
the context otherwise requires (it being understood that defined terms in this Agreement shall
include in the singular number the plural and in the plural the singular):

          1.1 Defined Terms.

          “ABR” shall mean, for any day, a rate per annum equal to the greater of (a) the Prime Rate in
effect on such day and (b) the Federal Funds Effective Rate in effect on such day plus 0.5%. For
purposes hereof, “Prime Rate” shall mean the prime lending rate as set forth on the British Banking
Association Reuters Page 5 (or such other comparable page as may, in the reasonable opinion of the
Administrative Agent, replace such page for the purpose of displaying such rate), as in effect from
time to time. Any change in the ABR due to a change in any of the foregoing rates shall be
effective as of the opening of business on the effective date of such change in such rate.

          “ABR Loan” shall mean each Loan bearing interest at the rate provided in Section 2.8(a).

          “Acquisition” shall mean Newco’s acquisition of the Purchased Assets in accordance with the
Asset Sale Agreement.

          “Administrative Agent” shall have the meaning provided in the preamble to this Agreement and
shall include such other financial institution as may be appointed as the successor administrative
agent in the manner and to the extent described in Article 11.

          “Administrative Questionnaire” shall mean an Administrative Questionnaire in a form supplied
by the Administrative Agent.

          “Affiliate” shall mean, with respect to any Person, (a) any other Person directly or
indirectly controlling, controlled by, or under direct or indirect common control with such Person,
and (b) any other Person in which such Person directly or indirectly through Subsidiaries has a 10%
or greater equity interest. A Person shall be deemed to control a Person if such Person possesses,
directly or indirectly, the power (i) to vote 10% or more of the Voting Stock having ordinary
voting power for the election of directors (or the equivalent) of such other Person or (ii) to
direct or cause the direction of the management and policies of such other Person, whether through
the ownership of Capital Stock, by contract or otherwise.

5

 

          “Aggregate Available Commitment” shall mean the aggregate amount of the Commitments of all
Lenders minus the Alternative Financing Amount.

          “Agreement” shall mean this Bridge Loan Agreement, as the same may be amended, modified,
supplemented, restated or replaced from time to time.

          “Alternative Financing Amount” shall mean the Net Available Proceeds received by the Borrower,
Newco and Newco’s Subsidiaries from Debt Incurrences (other than under this Agreement) and Equity
Issuances on or prior to the Closing Date and applied to finance the Acquisition.

          “Applicable Margin” shall mean, for any day, the applicable rate per annum set forth below,
based upon the ratings by Moody’s and S&P applicable on such date to the Borrower’s
non-credit-enhanced long term senior unsecured debt:

	 	 	 	 	 	 	 	 	 
	Borrower's Debt	 	Applicable Margin
	Rating (S&P/Moody's)	 	LIBOR Loan	 	ABR Loan
	Category 1
A/A2
	 	 	0.35	%	 	 	0	%
	Category 2
A-/A3
	 	 	0.40	%	 	 	0	%
	Category 3
BBB+/Baa1
	 	 	0.45	%	 	 	0	%
	Category 4
BBB/Baa2
	 	 	0.50	%	 	 	0	%
	Category 5
BBB-/Baa3
	 	 	0.625	%	 	 	0	%
	Category 6
BB+/Ba1 or lower
	 	 	1.25	%	 	 	0.25	%

          For purposes of this definition, (i) if the ratings established by S&P and Moody’s shall fall
within different Categories, the Applicable Margin shall be based on the higher of the two ratings
unless one of the two ratings is two or more Categories lower than the other, in which case the
Applicable Margin shall be determined by reference to the Category next below the higher of the two
Categories (provided that if the rating established by S&P is BBB- and the rating established by
Moody’s is Ba1, or if the rating established by S&P is BB+ and the rating established by Moody’s is
Baa3, the Applicable Margin shall be (x) in respect of LIBOR Loans, 1.00% and (y) in respect of ABR
Loans, 0%), (ii) if only one rating is available from either S&P or Moody’s, then such rating shall
be used to determine the applicable Category, (iii) if neither S&P nor Moody’s shall have in effect
a rating for the Borrower’s non-credit-enhanced long term

6

 

senior unsecured debt, then Category 6 above shall apply, and (iv) if the ratings established or
deemed to have been established by S&P or Moody’s shall be changed (other than as a result of a
change in the rating system of S&P or Moody’s), such change shall be effective as of the date on
which it is first announced by the applicable rating agency. Each change in the Applicable Margin
shall apply during the period commencing on the effective date of such change and ending on the
date immediately preceding the effective date of the next such change. If the rating system of
Moody’s or S&P shall change, or if either such rating agency shall cease to be in the business of
rating corporate debt obligations, the Borrower and the Lenders shall negotiate in good faith to
amend this definition to reflect such changed rating system or the unavailability of ratings from
such rating agency and, pending the effectiveness of any such amendment, the Applicable Margin
shall be determined by reference to the rating most recently in effect prior to such change or
cessation.

          “Approved Fund” shall mean any Person (other than a natural person) that is or will be engaged
in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of
credit in the ordinary course of its business and that is administered or managed by a Lender, an
Affiliate of a Lender or an entity or an Affiliate of an entity that administers or manages a
Lender.

          “Arranger” shall mean Lehman Brothers Inc.

          “Asset Sale Agreement” shall mean the Asset Sale Agreement dated as of January 18, 2007
between Interstate Power and Light Company, an Iowa corporation, and Newco.

          “Assignee” shall have the meaning provided in Section 12.6(b)(i).

          “Assignment and Acceptance” shall mean the assignment and acceptance agreement delivered by
each Assignee pursuant to Section 12.6(b)(ii).

          “Attributable Value” shall mean, with respect to any Sale and Leaseback Transaction, as of the
time of determination, the lesser of (i) the sale price of the property or assets so leased
multiplied by a fraction the numerator of which is the remaining portion of the base term of the
lease included in such Sale and Leaseback Transaction and the denominator of which is the base term
of such lease, and (ii) the total obligation (discounted to present value at the rate of interest
specified by the terms of such lease) of the lessee for rental payments (other than amounts
required to be paid on account of property taxes as well as maintenance, repairs, insurance, water
rates and other items which do not constitute payments for property rights) during the remaining
portion of the base term of the lease included in such Sale and Leaseback Transaction.

          “Authorized Officer” shall mean the Chief Executive Officer, the President, any Executive
Vice-President, any Senior Executive Vice President, any Senior Vice-President, the Chief Financial
Officer, the Treasurer or General Counsel of the Borrower or any other senior officer of the
Borrower designated as such in writing to the Administrative Agent by the Borrower.

          “Availability Period” shall mean the period from and including the date of this Agreement to
and including December 31, 2007.

7

 

          “Bankruptcy Code” shall have the meaning provided in Section 10.5.

          “Borrower” shall have the meaning provided in the recitals to this Agreement.

          “Borrowing” shall mean the incurrence of one Type of Loan on a given date (or resulting from
conversions or continuations on a given date) having, in the case of LIBOR Loans, the same LIBOR
Period (provided that ABR Loans incurred pursuant to Section 2.10(b) shall be considered part of
any related Borrowing of LIBOR Loans).

          “Business” shall have the meaning provided in Section 8.11.

          “Business Day” shall mean (a) for all purposes other than as covered by clause (b) below, any
day excluding Saturday, Sunday and any day that shall be in the City of New York a legal holiday or
a day on which banking institutions are authorized or required by law or other governmental actions
to close, and (b) with respect to all notices and determinations in connection with, and payments
of principal and interest on, LIBOR Loans, any day that is a Business Day described in clause (a)
excluding any day that shall be in the City of London a legal holiday or a day on which banking
institutions are authorized or required by law or other governmental actions to close.

          “Capital Lease”, as applied to any Person, shall mean any lease of any property (whether real,
personal or mixed) by that Person as lessee that, in conformity with GAAP, is, or is required to
be, accounted for as a finance lease obligation on the balance sheet of that Person.

          “Capital Stock” shall mean common shares, preferred shares or other equivalent equity
interests (howsoever designated) of capital stock of a corporation, equity preferred or common
interests or membership interests in a limited liability company, limited or general partnership
interests in a partnership or any other equivalent of such ownership interest.

          “Capitalized Lease Obligations” shall mean, as applied to any Person, all obligations under
Capital Leases of such Person and its Subsidiaries, in each case taken at the amount thereof
accounted for as liabilities in accordance with GAAP.

          “Change of Ownership” shall mean and be deemed to have occurred if (i) any person or group
(within the meaning of the Securities and Exchange Act of 1934, as amended, and the rules of the
Securities and Exchange Commission thereunder) shall become, directly or indirectly, the beneficial
owner of capital stock representing more than 35% of the ordinary voting power represented by the
issued and outstanding Voting Stock of the Borrower; and/or (ii) a majority of the incumbent
directors of the Borrower ceases to be persons who were either (x) directors of the Borrower on the
Closing Date or (y) new directors (such persons being called herein “New Members”)
appointed or nominated for election by one or more persons who were members of the board of
directors of the Borrower on the Closing Date or who were appointed or nominated by one or more
such New Members whether or not they were members on the Closing Date.

          “Closing Date” shall mean the date (which shall be a Business Day) on which the conditions
precedent set forth in Section 6.1 have been satisfied or waived.

8

 

          “Code” shall mean the Internal Revenue Code of 1986, and the regulations thereunder, in each
case as amended, reformed or otherwise modified from time to time.

          “Commitment” shall mean, as to each Lender, the obligation of such Lender (on and subject to
the terms and conditions hereof) to make a Loan to the Borrower pursuant to Section 2.1 in a
principal amount up to but not exceeding the amount set forth opposite the name of such Lender on
Schedule I or in any Assignment and Acceptance to which such Lender is a party (as such commitment
may be reduced or increased from time to time pursuant to assignments by or to such Lender in
accordance with Section 12.6).

          “Commitment Percentage” shall mean, at any time, for each Lender, the percentage obtained by
dividing (a) the aggregate outstanding principal amount of such Lender’s Loans by (b) the aggregate
outstanding principal amount of all Loans (or, if no Loans are outstanding, the percentage obtained
by dividing (x) such Lender’s Commitment by (y) the aggregate amount of the Commitments of all
Lenders).

          “Compliance Certificate” shall have the meaning provided in Section 8.1(c).

          “Confidential Information” shall have the meaning provided in Section 12.17.

          “Consolidated Capitalization” shall mean consolidated total assets less consolidated
non-interest bearing current liabilities, all as shown on the Borrower’s most recently delivered
audited consolidated balance sheet prepared in accordance with GAAP.

          “Control”, “Controls” and “Controlled”, when used with respect to any Person, shall mean the
power to direct the management and policies of such Person, directly or indirectly, whether through
ownership of Voting Stock, by contract or otherwise.

          “Controlled Group” shall mean all members of a controlled group of corporations and all
members of a controlled group of trades or businesses (whether or not incorporated) under common
control which, together with the Borrower, are treated as a single employer under Section 414(b) or
414(c) of the Code or Section 4001 of ERISA.

          “Debt Incurrence” shall mean the incurrence by the Borrower, Newco or any of Newco’s
Subsidiaries of any Indebtedness.

          “Default” shall mean any event, act or condition that with notice or lapse of time, or both,
would constitute an Event of Default.

          “Defaulting Lender” shall mean any Lender with respect to which a Lender Default is in effect.

          “Dollars” and “$” shall mean lawful currency of the United States.

          “Environmental Claims” shall mean any and all administrative, regulatory or judicial actions,
suits, demands, demand letters, claims, liens, notices of non-compliance, investigations (other
than internal reports prepared by the Borrower or any of its Subsidiaries (a) in the ordinary
course of such Person’s business or (b) as required in connection with a financing transaction or

9

 

an acquisition or disposition of real estate) or proceedings relating in any way to any
Environmental Law or any permit issued, or any approval given, under any such Environmental Law
(hereinafter, “Claims”), including (i) any and all Claims by governmental or regulatory authorities
for enforcement, cleanup, removal, response, remedial or other actions or damages pursuant to any
applicable Environmental Law and (ii) any and all Claims by any third party seeking damages,
contribution, indemnification, cost recovery, compensation or injunctive relief resulting from
Hazardous Materials or arising from alleged injury or threat of injury to health, safety (with
respect to Hazardous Materials or conditions in the environment) or the environment.

          “Environmental Law” shall mean any applicable federal, provincial, state, foreign or local
statute, law, rule, regulation, ordinance, code and rule of common law now or hereafter in effect
and in each case as amended, and any binding judicial or administrative interpretation thereof,
including any binding judicial or administrative order, consent decree or judgment, relating to the
environment, human health or safety (with respect to Hazardous Materials or conditions in the
environment) or Hazardous Materials.

          “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended, and any
successor statute thereto of similar import, together with the regulations thereunder, in each case
as in effect from time to time. References to Sections of ERISA also refer to any successor
Sections thereto.

          “Equity Issuance” shall mean (a) any issuance or sale (whether public or private) by the
Borrower, Newco or any of Newco’s Subsidiaries after the Closing Date of (i) any of its Capital
Stock, (ii) any warrants or options exercisable in respect of its Capital Stock (other than any
warrants or options issued to directors, officers or employees of the Borrower, Newco or any of
Newco’s Subsidiaries pursuant to employee benefit plans established in the ordinary course of
business and any Capital Stock of the Borrower issued upon the exercise of such warrants or
options) or (iii) any other security or instrument representing an equity interest (or the right to
obtain any equity interest) in the Borrower, Newco or any of Newco’s Subsidiaries or (b) the
receipt by the Borrower, Newco or any of Newco’s Subsidiaries of any capital contribution (whether
or not evidenced by any equity security issued by the recipient of such contribution);
provided that Equity Issuance shall not include (x) any such issuance or sale by any
Subsidiary of Newco to the Borrower, Newco or any wholly owned Subsidiary of Newco or (y) any
capital contribution by the Borrower to Newco or any wholly owned Subsidiary of Newco, or by Newco
to any wholly owned Subsidiary of Newco.

          “Event of Default” shall have the meaning provided in Article 10.

          “Federal Funds Effective Rate” shall mean, for any day, the weighted average of the per annum
rates on overnight federal funds transactions with members of the Federal Reserve System arranged
by federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve
Bank of New York, or, if such rate is not so published for any day that is a Business Day, the
average of the quotations for the day of such transactions received by the Administrative Agent
from three federal funds brokers of recognized standing selected by it.

          “Fees” shall mean all amounts payable pursuant to, or referred to in, Article 3.

10

 

          “Finance Parties” shall mean the Administrative Agent and the Lenders.

          “F.R.S. Board” shall mean the Board of Governors of the Federal Reserve System or any
successor thereto.

          “GAAP” shall mean generally accepted accounting principles in the United States as in effect
from time to time.

          “Governmental Authority” shall mean any nation or government, any state or other political
subdivision thereof, and any entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government.

          “Guarantee Obligations” shall mean, as to any Person, any obligation of such Person
guaranteeing or intended to guarantee any Indebtedness of any other Person (the “primary obligor”)
in any manner, whether directly or indirectly, including any obligation of such Person, whether or
not contingent, (a) to purchase any such Indebtedness or any property constituting direct or
indirect security therefor, (b) to advance or supply funds (i) for the purchase or payment of any
such Indebtedness or (ii) to maintain working capital or equity capital of the primary obligor or
otherwise to maintain the net worth or solvency of the primary obligor, (c) to purchase property,
securities or services primarily for the purpose of assuring the owner of any such Indebtedness of
the ability of the primary obligor to make payment of such Indebtedness or (d) otherwise to assure
or hold harmless the owner of such Indebtedness against loss in respect thereof; provided that, the
term “Guarantee Obligations” shall not include endorsements of instruments for deposit or
collection in the ordinary course of business. The amount of any Guarantee Obligation shall be
deemed to be an amount equal to the stated or determinable amount of the Indebtedness in respect of
which such Guarantee Obligation is made or, if not stated or determinable, the maximum reasonably
anticipated liability in respect thereof (assuming such Person is required to perform thereunder)
as determined by such Person in good faith or, if the Guarantee Obligation is expressly limited to
a specified amount, such specified amount.

          “Hazardous Material” shall mean (a) any petroleum or petroleum products, radioactive
materials, friable asbestos, urea formaldehyde foam insulation, transformers or other equipment
that contain dielectric fluid containing regulated levels of polychlorinated biphenyls, and radon
gas; (b) any chemicals, materials or substances defined as or included in the definition of
“hazardous substances”, “hazardous waste”, “hazardous materials”, “extremely hazardous waste”,
“restricted hazardous waste”, “toxic substances”, “toxic pollutants”, “contaminants”, or
“pollutants”, or words of similar import, under any applicable Environmental Law; and (c) any other
chemical, material or substance, exposure to which is prohibited, limited or regulated by any
Governmental Authority.

          “including” and “include” shall mean including without limiting the generality of any
description preceding such term, and, for purposes of this Agreement, the parties hereto agree that
the rule of ejusdem generis shall not be applicable to limit a general statement, which is followed
by or referable to an enumeration of specific matters, to matters similar to the matters
specifically mentioned.

11

 

          Indebtedness” of any Person shall mean (a) all indebtedness of such Person for borrowed
money, (b) the deferred purchase price of assets or services that in accordance with GAAP would be
classified as a liability on the balance sheet of such Person, (c) the face amount of all letters
of credit issued for the account of such Person and, without duplication, all drafts drawn
thereunder, (d) all Indebtedness of a second Person secured by any Lien on any property owned by
such first Person, whether or not such Indebtedness has been assumed, (e) all Capitalized Lease
Obligations of such Person, (f) all existing payment obligations of such Person under interest rate
swap, cap or collar agreements, interest rate future or option contracts, currency swap agreements,
currency future or option contracts and other similar agreements, (g) all existing payment
obligations of such Person under commodity future contracts and other similar agreements and (h)
without duplication, all Guarantee Obligations of such Person; provided that, Indebtedness shall
not include current payables and accrued expenses, in each case arising in the ordinary course of
business.

          “ITC” shall mean International Transmission Company, a Michigan corporation and Subsidiary of
the Borrower.

          “ITC First Mortgage Indenture” shall mean the First Mortgage and Deed of Trust, dated as of
July 15, 2003, between ITC and BNY Midwest Trust Company, as trustee thereunder, as the same may be
amended, supplemented or otherwise modified and in effect from time to time.

          “Lender” and “Lenders” shall have the respective meanings provided in the preamble to this
Agreement.

          “Lender Default” shall mean a Lender having notified the Administrative Agent and/or the
Borrower that it does not intend to comply with the obligations under Section 2.1(a) as a result of
the control of such Lender being assumed by any regulatory authority or the appointment of a
receiver or conservator with respect to such Lender at the direction or request of any regulatory
agency or authority.

          “LIBOR” shall mean, with respect to each LIBOR Period for each LIBOR Loan, a rate per annum,
expressed on the basis of a 360 day year, equal to the annual interest rate for deposits of Dollars
for a maturity most nearly comparable to such LIBOR Period which appears on Reuters Page LIBOR01
(or on any successor or substitute page of such service, or any successor to or substitute for such
service, providing rate quotations comparable to those currently provided on such page of such
service, as determined by the Administrative Agent from time to time for purposes of providing
quotations of interest rates applicable to dollar deposits in the London interbank market) as of
11:00 a.m. (London time) on the second Business Day prior to the commencement of such LIBOR Period;
provided that if such service is not available on such day, then the interest rate at which the
Administrative Agent is offered deposits of Dollars by leading banks in the London interbank market
as of 11:00 a.m. (London time) on the second Business Day prior to the commencement of such LIBOR
Period, for delivery on the first day of such LIBOR Period for the number of days comprised in such
LIBOR Period and in an amount comparable to the amount of such LIBOR Loan.

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          “LIBOR Loan” shall mean each Loan bearing interest at the rate provided in Section 2.8(b).

          “LIBOR Period” shall mean, with respect to a LIBOR Loan, the interest period selected by the
Borrower for such LIBOR Loan in accordance with Section 2.9.

          “Lien” shall mean any mortgage, pledge, security interest, hypothecation, assignment by way of
security, lien (statutory or other) or similar encumbrance (including any agreement to give any of
the foregoing, any conditional sale or other title retention agreement or any lease in the nature
thereof).

          “Material Adverse Effect” shall mean a circumstance or condition affecting the business,
assets, operations, properties or financial condition of the Borrower and its Subsidiaries taken as
a whole that would materially adversely affect the ability of the Borrower to perform its
obligations under this Agreement.

          “Material Subsidiary” shall mean, as at any date, a Subsidiary (the “Subject Subsidiary”),
including its subsidiaries, which meet any of the following conditions:

     (a) The Borrower’s and its other Subsidiaries’ investments in and advances to the Subject
Subsidiary and its Subsidiaries exceeds 10% of the total assets of the Borrower and its
Subsidiaries consolidated as of the end of the then most recently completed fiscal year; or

     (b) The Borrower’s and its other Subsidiaries’ proportionate share of the total assets
(after intercompany eliminations) of the Subsidiary exceeds 10% of the total assets of the
Borrower and its Subsidiaries consolidated as of the end of the then most recently completed
fiscal year; or

     (c) The Borrower’s and its other Subsidiaries’ equity in the income from continuing
operations before income taxes, extraordinary items and cumulative effect of a change in
accounting principles of the Subject Subsidiary and its Subsidiaries exceeds 10% of such income
of the Borrower and its Subsidiaries consolidated for the then most recently completed fiscal
year.

          “Maturity Date” shall mean the date falling 364 days after the Closing Date.

          “METC” shall mean Michigan Electric Transmission Company, LLC, a Michigan corporation.

          “METC First Mortgage Indenture” shall mean the First Mortgage Indenture, dated as of December
10, 2003, between METC and JPMorgan Chase Bank, N.A., as Trustee, as the same may be amended,
supplemented or otherwise modified from time to time.

          “Minimum Borrowing Amount” shall mean $500,000.

          “Moody’s” shall mean Moody’s Investors Service, Inc. or any successor by merger or
consolidation to its business.

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          “Net Available Proceeds” shall mean, in the case of any Equity Issuance or Debt Incurrence,
the aggregate amount of all cash received by the Borrower, Newco or any of Newco’s Subsidiaries in
respect thereof, net of attorney’s fees, investment banking fees, accountant’s fees, underwriting
discounts and commissions and other customary fees and expenses incurred by Borrower, Newco or such
Subsidiary in connection therewith.

          “Net Tangible Assets” shall mean the amount shown as consolidated total assets on the
Borrower’s most recently delivered audited consolidated balance sheet prepared in accordance with
GAAP, less the following: (i) intangible assets including, without limitation, such items as
goodwill, trademarks, tradenames, patents and unamortized debt discount and expense and other
regulatory assets carried as an asset on such balance sheet; and (ii) appropriate adjustments, if
any, on account of minority interests.

          “Newco” shall mean ITC Midwest LLC, a Michigan limited liability company and a wholly-owned
Subsidiary of the Borrower.

          “Newco Debt to Capitalization Ratio” shall mean, as of any date of determination, the ratio of
(a) Newco Total Debt as of such date to (b) Newco Total Capitalization as of such date.

          “Newco Total Capitalization” shall mean, as of any date of determination, the sum, without
duplication, of (a) Newco Total Debt and (b) the total stockholder’s equity of Newco as determined
in accordance with GAAP; provided that the term “Newco Total Capitalization” shall exclude the
non-cash effects of the March 31, 2006 FAS Statement titled “Employers’ Accounting for Defined
Pension and Postretirement Plans”.

          “Newco Total Debt” shall mean, as of any date of determination, (a) the sum, without
duplication, of (i) all Indebtedness of Newco and its Subsidiaries for borrowed money outstanding
on such date, (ii) all Capitalized Lease Obligations of Newco and its Subsidiaries outstanding on
such date and (iii) all Indebtedness of Newco and its Subsidiaries of the types described in
clauses (b) and (d) of the definition of Indebtedness (but in the case of clause (d), only to the
extent such Indebtedness is assumed by Newco or any of its Subsidiaries), all calculated on a
consolidated basis in accordance with GAAP and to the extent reflected as Indebtedness on the
consolidated balance sheet of Newco in accordance with GAAP minus (b) the aggregate amount of cash
held by Newco and its Subsidiaries as at such date and included in the cash accounts listed on the
consolidated balance sheet of Newco and its Subsidiaries and deposited with the Administrative
Agent to the extent the use thereof for application to payment of Indebtedness of Newco and its
Subsidiaries is not prohibited by law or any contract to which Newco or any of its Subsidiaries is
a party (but in each case excluding equity securities that are mandatorily redeemable 91 or more
days after the Maturity Date and that are classified as hybrid securities by Moody’s and/or S&P).

          “Non-U.S. Lender” shall mean any Lender that is not a “United States person”, as defined under
Section 7701(a)(30) of the Code.

          “Notice of Borrowing” shall mean a Notice of Borrowing provided pursuant Section 2.3(a),
substantially in the form of Exhibit A.

          “Notice of Continuation” shall have the meaning provided in Section 2.6(a).

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          “Organic Document” shall mean, relative to any Person, its certificate of incorporation,
by-laws, certificate of partnership, partnership agreement, certificate of formation, limited
liability agreement, operating agreement and all shareholder agreements, voting trusts and similar
arrangements applicable to any of such Person’s Capital Stock.

          “Participant” shall have the meaning provided in Section 12.6(c).

          “Pension Plan” shall mean a “pension plan”, as such term is defined in Section 3(2) of ERISA,
which is subject to Title IV of ERISA (other than a multiemployer plan as defined in Section
4001(a)(3) of ERISA), and to which the Borrower or any corporation, trade or business that is,
along with the Borrower, a member of a Controlled Group, is a contributing employer or a sponsor.

          “Permitted Liens” shall mean (a) Liens for taxes, assessments, customs duties or governmental
charges or claims not yet due or which are being contested in good faith and by appropriate
proceedings for which appropriate provisions have been established in accordance with GAAP; (b)
Liens in respect of property or assets of the Borrower or any of its Subsidiaries imposed by law,
such as carriers’, warehousemen’s and or mechanics’ Liens, and other similar Liens arising in the
ordinary course of business and Liens arising under zoning laws and ordinances and municipal bylaws
and regulations, in each case so long as such Liens arise in the ordinary course of business and do
not individually or in the aggregate have a Material Adverse Effect; (c) Liens arising out of
pledges or deposits under workmen’s compensation laws or similar legislation and Liens of judgments
thereunder which are not currently dischargeable, or good faith deposits in connection with bids,
tenders, contracts (other than for the payment of money) or leases to which the Borrower or any
Subsidiary is a party, or deposits to secure public or statutory obligations of the Borrower or any
Subsidiary, or deposits in connection with obtaining or maintaining self-insurance or to obtain the
benefits of any law, regulation or arrangement pertaining to unemployment insurance, old age
pensions, social security or similar matters, or deposits of cash or obligations of the United
States of America to secure surety, appeal or customs bonds to which the Borrower or any Subsidiary
is a party, or deposits in litigation or other proceedings such as, but not limited to,
interpleader proceedings, and, to the extent not securing Indebtedness, other similar obligations
incurred in the ordinary course of business; (d) easements, rights-of-way, restrictive covenants or
agreements, minor defects or irregularities in title and other similar charges or encumbrances not
interfering in any material respect with the business of the Borrower and its Subsidiaries taken as
a whole; and (e) to the extent not securing Indebtedness, (i) liens arising from judgments or
decrees in circumstances not constituting an Event of Default under Section 10.7; (ii) ground
leases in respect of real property on which facilities owned or leased by the Borrower or any of
its Subsidiaries are located; (iii) any interest or title of a lessor or secured by a lessor’s
interest under any lease not prohibited by this Agreement; (iv) liens incurred by the licensing of
trademarks by the Borrower or any of its Subsidiaries to others in the ordinary course of business;
and (v) leases or subleases granted to others, not interfering in any material respect with the
business of the Borrower and its Subsidiaries taken as a whole.

          “Person” shall mean any individual, partnership, joint venture, firm, corporation, limited
liability company, association, trust or other enterprise or any Governmental Authority.

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          “Purchased Assets” shall have the meaning provided in the Asset Sale Agreement.

          “Real Estate” shall have the meaning provided in Section 8.1(e).

          “Register” shall have the meaning provided in Section 12.6(b)(iv).

          “Related Parties” shall mean, with respect to any specified Person, such Person’s Affiliates
and the respective directors, officers, employees, agents and advisors of such Person and such
Person’s Affiliates.

          “Required Lenders” shall mean, at any date, Lenders holding more than 50% of the aggregate
outstanding principal amount of the Loans or, if no Loans are outstanding, Lenders having more than
50% of the aggregate amount of the Commitments.

          “Requirement of Law” shall mean, as to any Person, the Certificate of Incorporation and
By-Laws or other organizational or governing documents of such Person, and any law, treaty, rule,
regulation, guideline, policy or determination of an arbitrator or a court or other Governmental
Authority, in each case applicable to or binding upon such Person or any of its property or assets
or to which such Person or any of its property or assets is subject and whether or not having the
force of law.

          “Sale and Leaseback Transaction” shall have the meaning provided in Section 9.5.

          “S&P” shall mean Standard & Poor’s Ratings Service or any successor by merger or consolidation
to its business.

          “Securities Act” shall mean the Securities Act of 1933, as amended.

          “Subsidiary” of any Person shall mean and include (a) any corporation more than 50% of whose
stock of any class or classes having by the terms thereof ordinary voting power to elect a majority
of the directors of such corporation (irrespective of whether or not at the time stock or issued
share capital of any class or classes of such corporation shall have or might have voting power by
reason of the happening of any, contingency) is at the time owned by such Person directly or
indirectly through Subsidiaries and (b) any partnership, association, joint venture or other entity
in which such Person directly or indirectly through Subsidiaries has more than a 50% equity
interest and more than a 50% voting interest at the time and (c) any other corporation,
partnership, joint venture or other entity (i) the accounts of which would be consolidated with
those of such Person in such Person’s consolidated financial statements if such statements were
prepared in accordance with GAAP and (ii) that is controlled (as defined in clause (b) of the
definition of such term in the definition of the term “Affiliate”) by such Person. Unless
otherwise expressly provided, all references herein to a “Subsidiary” shall mean a Subsidiary of
the Borrower.

          “Successor Borrower” shall have the meaning provided in Section 9.2(a).

          “Taxes” shall have the meaning provided in Section 5.3(a)(i).

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          “Total Capitalization” shall mean, as of any date of determination, the sum, without
duplication, of (a) Total Debt and (b) the total stockholder’s equity of the Borrower as determined
in accordance with GAAP; provided that the term “Total Capitalization” shall exclude the non-cash
effects of the March 31, 2006 FAS Statement titled “Employers’ Accounting for Defined Pension and
Postretirement Plans”.

          “Total Debt” shall mean, as of any date of determination, (a) the sum, without duplication, of
(i) all Indebtedness of the Borrower and its Subsidiaries for borrowed money outstanding on such
date, (ii) all Capitalized Lease Obligations of the Borrower and its Subsidiaries outstanding on
such date and (iii) all Indebtedness of the Borrower and its Subsidiaries of the types described in
clauses (b) and (d) of the definition of Indebtedness (but in the case of clause (d), only to the
extent such Indebtedness is assumed by the Borrower or any Subsidiary), all calculated on a
consolidated basis in accordance with GAAP and to the extent reflected as Indebtedness on the
consolidated balance sheet of the Borrower in accordance with GAAP minus (b) the aggregate amount
of cash held by the Borrower and its Subsidiaries as at such date and included in the cash accounts
listed on the consolidated balance sheet of the Borrower and its Subsidiaries and deposited with
the Administrative Agent to the extent the use thereof for application to payment of Indebtedness
of the Borrower and its Subsidiaries is not prohibited by law or any contract to which the Borrower
or any of its Subsidiaries is a party (but in each case excluding equity securities that are
mandatorily redeemable 91 or more days after the Maturity Date and that are classified as hybrid
securities by Moody’s and/or S&P).

          “Total Debt to Capitalization Ratio” shall mean, as of any date of determination, the ratio of
(a) Total Debt as of such date to (b) Total Capitalization as of such date.

          “Transactions” shall mean the execution, delivery and performance by the Borrower of this
Agreement, including the borrowing of the Loans and the use of the proceeds thereof.

          “Type” shall mean as to any Loan, its nature as an ABR Loan or a LIBOR Loan.

          “United States” and “US” shall mean the United States of America.

          “Voting Stock” shall mean Capital Stock of a Person which carries voting rights or the right
to Control such Person under any circumstances; provided that Capital Stock which carries the right
to vote or Control conditionally upon the happening of an event shall not be considered Voting
Stock until the occurrence of such event and then only during the continuance of such event.

          “Welfare Plan” shall mean a “welfare plan”, as such term is defined in Section 3(1) of ERISA.

          1.2 Accounting Terms; GAAP.

          Except as otherwise expressly provided herein, all terms of an accounting or financial nature
shall be construed in accordance with GAAP, as in effect from time to time; provided that,
if the Borrower notifies the Administrative Agent that the Borrower requests an amendment to any
provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or
in the application thereof on the operation of such provision (or if the Administrative

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Agent notifies the Borrower that the Required Lenders request an amendment to any provision
hereof for such purpose), regardless of whether any such notice is given before or after such
change in GAAP or in the application thereof, then such provision shall be interpreted on the basis
of GAAP as in effect and applied immediately before such change shall have become effective until
such notice shall have been withdrawn or such provision amended in accordance herewith.

ARTICLE 2

AMOUNT AND TERMS OF CREDIT

          2.1 Commitments.

          (a) Subject to and upon the terms and conditions herein set forth, each Lender severally
agrees to make a single loan (each a “Loan” and, collectively, the “Loans”) to the Borrower on a
Business Day during the Availability Period in Dollars in a principal amount up to but not
exceeding such Lender’s Commitment and, as to all Lenders, in an aggregate principal amount up to
but not exceeding the Aggregate Available Commitments. Loans may, at the option of the Borrower,
be incurred and maintained as, and/or converted into, ABR Loans or LIBOR Loans (provided that all
Loans made by each of the Lenders pursuant to the same Borrowing shall, unless otherwise
specifically provided herein, consist entirely of Loans of the same Type).

          (b) The Borrower shall use the proceeds from the Loans to finance the Acquisition and to pay
related costs and expenses.

          2.2 Minimum Amount of Each Borrowing; Maximum Number of Borrowings.

          The aggregate principal amount of each Borrowing of Loans shall be in a multiple of $100,000
and shall not be less than the Minimum Borrowing Amount. At no time shall there be outstanding
more than 15 Borrowings of LIBOR Loans under this Agreement.

          2.3 Notice of Borrowing.

          (a) When the Borrower desires to borrow the initial Loans hereunder, it shall give the
Administrative Agent at the office of the Administrative Agent set forth in Section 12.2(a)(ii),
(i) a written Notice of Borrowing (or telephonic notice promptly confirmed in writing) prior to
12:00 noon (New York time) at least three Business Days prior to the proposed day of a Borrowing of
LIBOR Loans and (ii) a written Notice of Borrowing (or telephonic notice promptly confirmed in
writing) prior to 10:00 a.m. (New York time) on the proposed day of a Borrowing of ABR Loans. Each
such Notice of Borrowing, except as otherwise expressly provided in Section 2.10, shall be
irrevocable and shall specify (i) the aggregate principal amount of the Loans to be made pursuant
to such Borrowing, (ii) the date of Borrowing (which shall be a Business Day), (iii) whether the
Borrowing shall consist of ABR Loans or LIBOR Loans, (iv) if such Borrowing shall consist of LIBOR
Loans, the LIBOR Period to be initially applicable thereto and (v) the number and location of the
account to which funds are to be disbursed. The Administrative Agent shall promptly give each
Lender written notice (or telephonic notice

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promptly confirmed in writing) of each proposed Borrowing of Loans, of such Lender’s
proportionate share thereof and of the other matters covered by the related Notice of Borrowing.

          (b) Without in any way limiting the obligation of the Borrower to confirm in writing any
notice it may give hereunder by telephone, the Administrative Agent may act prior to receipt of
written confirmation without liability upon the basis of such telephonic notice believed by the
Administrative Agent in good faith to be from an Authorized Officer of the Borrower. In each such
case the Borrower hereby waives the right to dispute the Administrative Agent’s record of the terms
of any such telephonic notice.

          2.4 Disbursement of Funds.

          (a) No later than 12:00 Noon (New York time) on the date specified in the Notice of Borrowing,
each Lender will make available its pro rata portion, if any, of each Borrowing requested to be
made on such date in the manner provided below.

          (b) Each Lender shall make available all amounts it is to fund under any Borrowing in
immediately available funds to the Administrative Agent at the office of the Administrative Agent
set forth in Section 12.2(a)(ii), and the Administrative Agent will make available to the Borrower
by depositing such funds as specified in the Notice of Borrowing, the aggregate of the amounts so
made available. Unless the Administrative Agent shall have been notified by any Lender prior to
the Closing Date that such Lender does not intend to make available to the Administrative Agent its
portion of the Borrowing or Borrowings to be made on the Closing Date, the Administrative Agent may
assume that such Lender has made such amount available to the Administrative Agent on the Closing
Date, and the Administrative Agent, in reliance upon such assumption, may (in its sole discretion
and without any obligation to do so) make available to the Borrower a corresponding amount. If
such corresponding amount is not in fact made available to the Administrative Agent by such Lender
and the Administrative Agent has made available same to the Borrower, the Administrative Agent
shall be entitled to recover such corresponding amount from such Lender. If such Lender does not
pay such corresponding amount forthwith upon the Administrative Agent’s demand therefor, the
Administrative Agent shall promptly notify the Borrower, and the Borrower shall immediately pay
such corresponding amount to the Administrative Agent. The Administrative Agent shall also be
entitled to recover from such Lender or the Borrower, as the case may be, interest on such
corresponding amount in respect of each day from the date such corresponding amount was made
available by the Administrative Agent to the Borrower to the date such corresponding amount is
recovered by the Administrative Agent, at a rate per annum equal to (i) if paid by such Lender, at
the Federal Funds Effective Rate or (ii) if paid by the Borrower, the then-applicable rate of
interest, calculated in accordance with Section 2.8, for the respective Loans.

          (c) Nothing in this Section 2.4 shall be deemed to relieve any Lender from its obligation to
fulfill its commitments hereunder or to prejudice any rights that the Borrower may have against any
Lender as a result of any default by such Lender hereunder (it being understood, however, that no
Lender shall be responsible for the failure of any other Lender to fulfill its commitments
hereunder).

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          2.5 Repayment of Loans; Evidence of Debt.

          (a) The Borrower shall, for the benefit of the Lenders, on the Maturity Date, repay to the
Administrative Agent the then-unpaid Loans.

          (b) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the Indebtedness of the Borrower to the appropriate lending office of such Lender
resulting from each Loan made by such lending office of such Lender from time to time, including
the amounts and currency of principal and interest payable and paid to such lending office of such
Lender from time to time under this Agreement.

          (c) The Administrative Agent shall maintain the Register pursuant to Section 12.6, and a
sub-account for each Lender, in which Register and sub-accounts (taken together) shall be recorded
(i) the amount of each Loan made hereunder, the Type of each Loan made and the LIBOR Period
applicable thereto, (ii) the amount of any principal or interest due and payable or to become due
and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by
the Administrative Agent hereunder from the Borrower and each Lender’s share thereof.

          (d) The entries made in the Register and accounts and subaccounts maintained pursuant to
paragraphs (b) and (c) of this Section shall, to the extent permitted by applicable law, be prima
facie evidence of the existence and amounts of the obligations of the Borrower therein recorded;
provided that the failure of any Lender or the Administrative Agent to maintain such account, such
Register or such subaccount, as applicable, or any error therein, shall not in any manner affect
the obligation of the Borrower to repay (with applicable interest) the Loans made to the Borrower
by such Lender in accordance with the terms of this Agreement. In the event that there is an
inconsistency between the accounts maintained by a Lender pursuant to Section 2.5(b) and the
Register maintained by the Administrative Agent pursuant to Section 12.6, the said Register shall
prevail.

          (e) All payments to be made by the Administrative Agent to any Lender hereunder shall be made
in accordance with the payment instructions of such Lender set forth on the signature page of such
Lender hereunder or, if such Lender is an Assignee, set forth in the Assignment and Acceptance of
such Lender.

          2.6 Changes in Type of Loan.

          (a) The Borrower shall have the option on any Business Day to convert all or a portion equal
to at least the Minimum Borrowing Amount of the outstanding principal amount of Loans of one Type
into a Borrowing or Borrowings of another permitted Type or to continue the outstanding principal
amount of any LIBOR Loans as LIBOR Loans for an additional LIBOR Period; provided that (i) no
partial continuation of LIBOR Loans shall reduce the outstanding principal amount of LIBOR Loans
made pursuant to a single Borrowing to less than the Minimum Borrowing Amount, (ii) ABR Loans may
not be converted into LIBOR Loans, if a Default or Event of Default is in existence on the date of
the proposed conversion and the Administrative Agent has or the Required Lenders have determined in
its or their sole discretion not to permit such conversion, (iii) LIBOR Loans may not be continued
as LIBOR Loans for an

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additional LIBOR Period if a Default or Event of Default is in existence on the date of the
proposed continuation and the Administrative Agent has or the Required Lenders have determined in
its or their sole discretion not to permit such continuation, (iv) no LIBOR Period in excess of one
month may be selected for any LIBOR Loan if a Default or Event of Default is in existence on the
date of the proposed continuation and the Administrative Agent has or the Required Lenders have
determined in its or their sole discretion not to permit such longer LIBOR Period, (v) Borrowings
resulting from continuations or conversions pursuant to this Section 2.6 shall be limited in number
as provided in Section 2.2 and (vi) the outstanding principal amount of a Loan of one Type may not
be converted into a Borrowing of another permitted Type until the end of the current LIBOR Period
for such Loan. Each such continuation or conversion shall be effected by the Borrower by giving
the Administrative Agent at the location set forth in Section 12.2 prior to 12:00 Noon (New York
time) at least three Business Days’ prior written notice substantially in the form of Exhibit B (or
telephonic notice promptly confirmed in writing) (each a “Notice of Continuation”) specifying the
Loans to be so continued or converted, the Type of Loans to be continued or converted into and, if
such Loans are to be converted or continued as LIBOR Loans, the LIBOR Period to be initially
applicable thereto. The Administrative Agent shall give each Lender notice as promptly as
practicable of any such proposed continuation or conversion affecting any of its Loans. This
Section shall not be construed to permit the Borrower to change the currency of any Borrowing.

          (b) If any Default or Event of Default is in existence at the time of any proposed
continuation of any LIBOR Loans and the Administrative Agent has or the Required Lenders have
determined in its or their sole discretion not to permit such continuation, such LIBOR Loans shall
be automatically converted on the last day of the current LIBOR Period into ABR Loans.

          (c) If upon the expiration of any LIBOR Period in respect of LIBOR Loans, the Borrower has
failed to elect a new LIBOR Period to be applicable thereto as provided in paragraph (a) above, the
Borrower shall be deemed to have elected to convert such Borrowing of LIBOR Loans into a Borrowing
of ABR Loans effective as of the expiration date of such current LIBOR Period.

          2.7 Pro Rata Borrowings.

          Each Borrowing of Loans under this Agreement shall be made by the Lenders pro rata on the
basis of their then-applicable Commitment Percentage. It is understood that no Lender shall be
responsible for any default by any other Lender in its obligation to make Loans hereunder and that
each Lender shall be obligated to make the Loans provided to be made by it hereunder, regardless of
the failure of any other Lender to fulfill its commitments hereunder.

          2.8 Interest and Fees.

          (a) The unpaid principal amount of each ABR Loan shall bear interest from the date of the
Borrowing thereof until maturity (whether by acceleration or otherwise and both before and after
default and judgment) at a rate per annum that shall at all times be equal to the Applicable Margin
for ABR Loans plus the ABR in effect from time to time.

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          (b) The unpaid principal amount of each LIBOR Loan shall bear interest from the date of the
Borrowing thereof until maturity (whether by acceleration or otherwise and both before and after
default and judgment) at a rate per annum that shall at all times be equal to the Applicable Margin
for LIBOR Loans plus the relevant LIBOR.

          (c) If all or a portion of (i) the principal amount of any Loan or (ii) any interest thereon
or fees payable hereunder shall not be paid when due (whether at the stated maturity, by
acceleration or otherwise), such overdue amount shall bear interest at a rate per annum that is (x)
in the case of overdue principal, equal to the rate that would otherwise be applicable thereto
plus, to the extent permitted by applicable law, 2.00% (after as well as before maturity and
judgment), (y) in the case of any overdue interest with respect to any Loan, equal to the rate of
interest applicable to such Loan plus, to the extent permitted by applicable law, 2.00%, or (z) in
the case of any overdue fees or other amounts owing hereunder, equal to the rate of interest then
applicable to Loans maintained as ABR Loans plus 2.00%, in each case from and including the date of
such non-payment to but excluding the date on which such amount is paid in full (after as well as
before maturity and judgment). All interest payable pursuant to this Section 2.8(c) shall be
payable upon demand.

          (d) Interest on each Loan shall accrue from and including the date of any Borrowing to but
excluding the date of any repayment thereof and shall, except as otherwise provided pursuant to
Section 2.8(c), be payable (i) in respect of each ABR Loan, quarterly in arrears on the last
Business Day of each of March, June, September and December, (ii) in respect of each LIBOR Loan, on
the last day of each LIBOR Period applicable thereto and, in the case of an LIBOR Period in excess
of three months, on each date occurring at three-month intervals after the first day of such LIBOR
Period, (iii) in respect of each Loan on any prepayment (on the amount prepaid), at maturity
(whether by acceleration or otherwise) and, after such maturity, on demand.

          (e) All computations of interest hereunder shall be made in accordance with Section 5.4.

          (f) The Administrative Agent, upon determining the interest rate for any Borrowing of LIBOR
Loans, shall promptly notify the Borrower and the relevant Lenders thereof. Each such
determination shall, absent clearly demonstrable error, be final and conclusive and binding on all
parties hereto.

          2.9 LIBOR Periods.

          At the time the Borrower gives a Notice of Borrowing or Notice of Continuation in respect of
the making of, or conversion into or continuation as, a Borrowing of LIBOR Loans prior to 10:00
a.m. (New York time) on the third Business Day prior to the applicable date of making or conversion
or continuation of such LIBOR Loans, the Borrower shall have the right to elect by giving the
Administrative Agent written notice of (or telephonic notice promptly confirmed in writing) the
LIBOR Period applicable to such Borrowing, which LIBOR Period shall, at the option of the Borrower,
be one, two, three or six months (or, with the consent of each Lender, nine or twelve months).
Notwithstanding anything to the contrary contained above:

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          (a) the initial LIBOR Period for any Borrowing of LIBOR Loans shall commence on the
date of such Borrowing (including the date of any conversion from a Borrowing of ABR Loans)
and each LIBOR Period occurring thereafter in respect of such Borrowing shall commence on
the day on which the next preceding LIBOR Period expires;

          (b) if any LIBOR Period relating to a Borrowing of LIBOR Loans begins on the last
Business Day of a calendar month or begins on a day for which there is no numerically
corresponding day in the calendar month at the end of such LIBOR Period, such LIBOR Period
shall end on the last Business Day of the calendar month at the end of such LIBOR Period;

          (c) if any LIBOR Period would otherwise expire on a day that is not a Business Day,
such LIBOR Period shall expire on the next succeeding Business Day; provided that if any
LIBOR Period in respect of a LIBOR Loan would otherwise expire on a day that is not a
Business Day but is a day of the month after which no further Business Day occurs in such
month, such LIBOR Period shall expire on the next preceding Business Day; and

          (d) the Borrower shall not be entitled to elect any LIBOR Period in respect of any
LIBOR Loan if such LIBOR Period would extend beyond the Maturity Date.

          2.10 Increased Costs, Illegality, etc.

          (a) In the event that any Lender shall have reasonably determined (which determination shall,
absent clearly demonstrable error, be final and conclusive and binding upon all parties hereto):

          (i) on any date for determining LIBOR for a Borrowing of LIBOR Loans for any LIBOR
Period that by reason of any changes arising on or after the date hereof affecting the
London interbank market (x) deposits in Dollars in the principal amounts of the Loans
comprising such Borrowing are not readily available to such Lender in the London interbank
market or (y) adequate and fair means do not exist for ascertaining the applicable interest
rate on the basis provided for in the definition of LIBOR; or

          (ii) at any time, that such Lender shall incur increased costs or reductions in the
amounts received or receivable hereunder with respect to any LIBOR Loans (other than any
such increase or reduction attributable to taxes) because of (x) any change since the date
hereof in any applicable law, governmental rule, regulation, guideline or order (or in the
interpretation or administration thereof and including the introduction of any new law or
governmental rule, regulation, guideline or order), such as, for example, but not limited
to, a change in official reserve requirements (including any reserve requirements specified
under regulations issued from time to time by the F.R.S. Board and then applicable to assets
or liabilities consisting of and including “Eurocurrency Liabilities” as therein defined),
and/or (y) other circumstances affecting the London interbank market; or

23

 

          (iii) at any time, that the making or continuance of any LIBOR Loan has become unlawful
by compliance by such Lender in good faith with any law, governmental rule, regulation,
guideline or order (or would conflict with any such governmental rule, regulation, guideline
or order not having the force of law even though the failure to comply therewith would not
be unlawful), or has become impracticable as a result of a contingency occurring after the
date hereof that materially and adversely affects the London interbank market;

then, and in any such event, such Lender shall within a reasonable time thereafter give notice (if
by telephone confirmed in writing) to the Borrower and to the Administrative Agent of such
determination (which notice the Administrative Agent shall promptly transmit to each of the other
Lenders). Thereafter (x) in the case of clause (i) above, LIBOR Loans shall no longer be available
from such Lender (and such Lender’s obligation to make such Loans shall be suspended) until such
time as such Lender notifies the Administrative Agent, the Borrower and the Lenders that the
circumstances giving rise to such notice by the Administrative Agent no longer exist (which notice
such Lender agrees to give at such time when such circumstances no longer exist), and any Notice of
Borrowing or Notice of Continuation given by the Borrower with respect to LIBOR Loans that have not
yet been incurred shall be deemed, with respect to such Lender only, to be a Notice of Borrowing or
Notice of Continuation for ABR Loans, (y) in the case of clause (ii) above, the Borrower shall pay
to such Lender, promptly after receipt of written demand therefor, such additional amounts (in the
form of an increased rate of, or a different method of calculating, interest or otherwise as such
Lender in its reasonable discretion shall determine) as shall be required to compensate such Lender
for such increased costs or reductions in amounts receivable hereunder (it being agreed that a
written notice as to the additional amounts owed to such Lender, showing in reasonable detail the
basis for the calculation thereof, submitted to the Borrower by such Lender shall, absent clearly
demonstrable error, be final and conclusive and binding upon all parties hereto) other than any
such increase or reduction attributable to taxes and (z) in the case of clause (iii) above, the
Borrower shall take one of the actions specified in Section 2.10(b) as promptly as possible and, in
any event, within the time period required by law.

          (b) At any time that any LIBOR Loan is affected by the circumstances described in Section
2.10(a)(ii) or 2.10(a)(iii), the Borrower may (and in the case of a LIBOR Loan affected pursuant to
Section 2.10(a)(iii) shall) either (i) if the affected LIBOR Loan is then being made pursuant to a
Borrowing by way of conversion into a LIBOR Loan, cancel said Borrowing by giving the
Administrative Agent telephonic notice (confirmed promptly in writing) thereof on the same date
that the Borrower was notified by a Lender pursuant to Section 2.10(a)(ii) or 2.10(a)(iii), or (ii)
if the affected LIBOR Loan is then outstanding, upon at least three Business Days notice to the
Administrative Agent, require the affected Lender to convert each such LIBOR Loan into an ABR Loan;
provided that if more than one Lender is affected at any time, then all affected Lenders must be
treated in the same manner pursuant to this Section 2.10(b).

          (c) If, after the date hereof, the adoption of any applicable law, rule or regulation
regarding capital adequacy, or any change therein, or any change in the interpretation or
administration thereof by any Governmental Authority, or compliance by a Lender or its parent with
any request or directive made or adopted after the date hereof regarding capital adequacy (whether
or not having the force of law) of any such Governmental Authority, has or would have

24

 

the effect of reducing the rate of return on such Lender’s or its parent’s capital or assets
as a consequence of such Lender’s commitments or obligations hereunder to a level below that which
such Lender or its parent could have achieved but for such adoption, effectiveness, change or
compliance (taking into consideration such Lender’s or its parent’s policies with respect to
capital adequacy), then from time to time, promptly after demand by such Lender (with a copy to the
Administrative Agent), the Borrower shall pay to such Lender such additional amount or amounts as
will compensate such Lender or its parent for such reduction, it being understood and agreed,
however, that a Lender shall not be entitled to such compensation as a result of such Lender’s
compliance with, or pursuant to any request or directive to comply with, any such law, rule or
regulation as in effect on the date hereof. Each Lender, upon determining in good faith that any
additional amounts will be payable pursuant to this Section 2.10(c), will give prompt written
notice thereof to the Borrower, which notice shall set forth in reasonable detail the basis of the
calculation of such additional amounts, although the failure to give any such notice shall not,
subject to Section 2.13, release or diminish any of the Borrower’s obligations to pay additional
amounts pursuant to this Section 2.10(c) upon receipt of such notice.

          2.11 Compensation.

          If (a) any payment of principal of any LIBOR Loan, or any continuation of any LIBOR Loan, is
made by the Borrower (or a replacement Lender in the case of Section 12.7) to or for the account of
a Lender other than on the last day of the LIBOR Period for such LIBOR Loan pursuant to Section
2.5, 2.6, 2.10, 5.1 or 12.7, as a result of acceleration of the maturity of the Loans pursuant to
Article 10 or for any other reason, (b) any Borrowing of LIBOR Loans is not made as a result of a
withdrawn Notice of Borrowing, (c) any ABR Loan is not converted into a LIBOR Loan as a result of a
withdrawn Notice of Continuation, (d) any LIBOR Loan is not continued as a LIBOR Loan as a result
of a withdrawn Notice of Continuation or (e) any prepayment of principal of any LIBOR Loan is not
made as a result of a withdrawn notice of prepayment pursuant to Section 5.1, the Borrower shall,
after receipt of a written request by such Lender (which request shall set forth in reasonable
detail the basis for requesting such amount), pay to the Administrative Agent for the account of
such Lender any amounts required to compensate such Lender for any additional losses, costs or
expenses that such Lender may reasonably incur as a result of such payment, failure to convert,
failure to continue or failure to prepay, including any loss, cost or expense (excluding loss of
anticipated profits) actually incurred by reason of the liquidation or reemployment of deposits or
other funds acquired by any Lender to fund or maintain such LIBOR Loan.

          2.12 Change of Lending Office.

          Each Lender agrees that, upon the occurrence of any event giving rise to the operation of
Section 2.10(a)(ii), 2.10(a)(iii), 2.10(b) or 5.3 with respect to such Lender, it will, if
requested by the Borrower, use reasonable efforts (subject to overall policy considerations of such
Lender) to designate another lending office for any Loans affected by such event; provided that
such designation is made on such terms that such Lender and its lending office suffer no economic,
legal or regulatory disadvantage, with the object of avoiding the consequence of the event giving
rise to the operation of any such Section. Nothing in this Section 2.12 shall affect or postpone
any of the obligations of the Borrower or the right of any Lender provided in Section 2.10 or 5.3.

25

 

          2.13 Notice of Certain Costs.

          Notwithstanding anything in this Agreement to the contrary, to the extent any notice required
by Section 2.10, 2.11 or 5.3 is given by any Lender more than 180 days after such Lender has
knowledge (or should have had knowledge) of the occurrence of the event giving rise to the
additional cost, reduction in amounts, loss, tax or other additional amounts described in such
Sections, such Lender shall not be entitled to compensation under Section 2.10, 2.11 or 5.3, as the
case may be, for any such amounts incurred or accruing prior to the giving of such notice to the
Borrower.

ARTICLE 3

FEES

          3.1 Administrative Agent Fees.

          The Borrower agrees to pay to the Administrative Agent, for the benefit of the Administrative
Agent, the fees for acting as administrative agent in the amounts and on the dates previously
agreed to in writing by the Borrower and the Administrative Agent, as amended from time to time by
agreement between the Administrative Agent and the Borrower.

          3.2 Other Agreed Fees.

          The Borrower agrees to pay to the Arranger, for the benefit of the Lenders, the fees in the
amounts and on the dates previously agreed to in writing by the Borrower and the Arranger.

ARTICLE 4

COMMITMENTS

          4.1 Voluntary Reduction of Commitments.

          Upon at least two Business Days’ prior written notice (or telephonic notice promptly confirmed
in writing) to the Administrative Agent (which notice the Administrative Agent shall promptly
transmit to each of the Lenders), the Borrower shall have the right, without premium or penalty, on
any day, to permanently terminate or reduce the Commitments in whole or in part; provided that (a)
any such reduction shall apply proportionately and permanently to reduce the Commitment of each of
the Lenders and (b) any partial reduction pursuant to this Section 4.1 shall be in the amount of at
least $1,000,000.

          4.2 Mandatory Termination of Commitments.

          Except to the extent previously terminated, the Commitments shall terminate at 5:00 p.m. (New
York time) on the earliest to occur of (a) the last day of the Availability Period, (b) the date on
which the Borrower notifies the Administrative Agent in writing that it has abandoned the
Acquisition and (c) the Closing Date.

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ARTICLE 5

PAYMENTS

          5.1 Prepayments.

          (a) Optional Prepayments. The Borrower shall have the right to prepay any Borrowing, without
premium or penalty, in whole or in part at any time and from time to time. Prepayments of Loans
under this Section 5.1(a) or under Section 5.1(b) shall be subject to the following conditions: (a)
the Borrower shall give the Administrative Agent written notice (or telephonic notice promptly
confirmed in writing) of its intent to make such prepayment, the amount of such prepayment and (in
the case of LIBOR Loans) the specific Borrowing(s) to be prepaid, which notice shall be given by
the Borrower no later than 10:00 a.m. (New York time) three Business Days prior to the date of such
prepayment and shall promptly be transmitted by the Administrative Agent to each of the Lenders;
(b) each partial prepayment made in accordance with this Section 5.1(a) shall be in an amount that
is a multiple of $100,000 and in an aggregate principal amount of at least $5,000,000; provided
that no such partial prepayment of LIBOR Loans made pursuant to a single Borrowing shall reduce the
outstanding LIBOR Loans made pursuant to such Borrowing to an amount less than the Minimum
Borrowing Amount for LIBOR Loans; and (c) any prepayment of LIBOR Loans pursuant to this Section
5.1(a) or Section 5.1(b) on any day other than the last day of an LIBOR Period applicable thereto
shall be subject to compliance by the Borrower with the applicable provisions of Section 2.11;
provided further that at the Borrower’s election in connection with any prepayment pursuant to this
Section 5.1(a), such prepayment shall not be applied to any Loan of a Defaulting Lender.

          (b) Mandatory Prepayments.

          (i) Equity Issuance. Upon the receipt by the Borrower, Newco or any of Newco’s
Subsidiaries after the Closing Date of the Net Available Proceeds of any Equity Issuance,
the Borrower shall prepay such portion (if any) of the aggregate outstanding principal
amount of the Loans as exceeds $540,000,000, in an aggregate principal amount equal to 100%
of the Net Available Proceeds of such Equity Issuance, with each such prepayment to be
applied as provided in Section 5.1(c); provided that, with respect to any Equity
Issuance by Newco to a Person who is not an Affiliate, the Borrower shall prepay the Loans
in an aggregate principal amount equal to 100% of the Net Available Proceeds of such Equity
Issuance.

          (ii) Debt Incurrence. Upon the receipt by the Borrower, Newco or any of
Newco’s Subsidiaries after the Closing Date of the Net Available Proceeds of any Debt
Incurrence the Borrower shall prepay the outstanding Loans in an aggregate principal amount
equal to 100% of the Net Available Proceeds of such Debt Incurrence, with each such
prepayment to be applied as provided in Section 5.1(c).

          (c) Application. Each prepayment of a Borrowing shall be applied ratably to the Loans
included in the prepaid Borrowing.

27

 

          5.2 Method and Place of Payment.

          (a) Except as otherwise specifically provided herein, all payments to be made by the Borrower
under this Agreement shall be made, without set-off, counterclaim or deduction of any kind, to the
Administrative Agent for the ratable account of all the Lenders, not later than 12:00 Noon (New
York time) on the date when due. Such payments shall be made in immediately available funds at the
office of the Administrative Agent from time to time notified by the Administrative Agent to the
Borrower (but initially the office set forth for the Administrative Agent in Section 12.2(a)(ii)),
it being understood that written or facsimile notice by the Borrower to the Administrative Agent to
make a payment from the funds in the Borrower’s account at an office of the Administrative Agent
shall constitute the making of such payment to the extent of such funds held in such account. The
Administrative Agent will thereafter cause to be distributed on the same day (if payment was
actually received by the Administrative Agent prior to 2:00 p.m. (New York time) on such day,
otherwise the next Business Day) like funds relating to the payment of principal or interest or
Fees ratably to the Lenders entitled thereto. A payment shall be deemed to have been made by the
Administrative Agent on the date on which it is required to be made under this Agreement if the
Administrative Agent has, on or before such date, taken steps to make such payment in accordance
with the regulations or operating procedures of the clearing or settlement system used by the
Administrative Agent in order to make such payment.

          (b) Any payments under this Agreement that are made later than 2:00 p.m. (New York time) shall
be deemed to have been made on the next succeeding Business Day. Whenever any payment to be made
hereunder shall be stated to be due on a day that is not a Business Day, the due date thereof shall
be extended to the next succeeding Business Day and, with respect to payments of principal,
interest shall be payable during such extension at the applicable rate in effect immediately prior
to such extension.

          5.3 Net Payments.

          (a) (i) All payments made by the Borrower under this Agreement shall be made free and clear
of, and without deduction or withholding for or on account of, any current or future income, stamp
or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now or
hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority, excluding
(i) net income taxes and franchise taxes (imposed in lieu of net income taxes) imposed on the
Administrative Agent or any Lender and (ii) any taxes imposed on the Administrative Agent or any
Lender as a result of a current or former connection between the Administrative Agent or such
Lender and the jurisdiction of the Governmental Authority imposing such tax or any political
subdivision or taxing authority thereof or therein (other than any such connection arising solely
from the Administrative Agent or such Lender having executed, delivered or performed its
obligations or received a payment under, or enforced, this Agreement) (“Taxes”) except to the
extent that such deduction or withholding is required by any applicable law, as modified by the
administrative practice of any relevant Governmental Authority then in effect. If any such Taxes
are required to be withheld from any amounts payable to the Administrative Agent or any Lender
hereunder, the Borrower shall:

          (A) promptly notify the Administrative Agent of such requirement;

28

 

          (B) promptly pay to the relevant Governmental Authority when due the full
amount required to be deducted or withheld (including the full amount of Taxes
required to be deducted or withheld from any additional amount paid by such Borrower
to the Administrative Agent or such Lender under this Section 5.3(a);

          (C) as promptly as possible thereafter, forward to the Administrative Agent and
such Lender an official receipt (or a certified copy), or other documentation
reasonably acceptable to the Administrative Agent and such Lender, evidencing such
payment to such Governmental Authority; and

          (D) pay to the Administrative Agent or such Lender, in addition to the payment
to which the Administrative Agent or such Lender is otherwise entitled under this
Agreement, such additional amount as is necessary to ensure that the net amount
actually received by the Administrative Agent or such Lender (free and clear of any
such Taxes, whether assessed against the Borrower, the Administrative Agent or such
Lender) will equal the full amount the Administrative Agent or such Lender would
have received had no such deduction or withholding been required.

          (ii) If the Borrower fails to pay to the relevant Governmental Authority when due any
Taxes that it was required to deduct or withhold under this Section 5.3(a) in respect of any
payment to or for the benefit of the Administrative Agent or any Lender under this Agreement
or fails to furnish the Administrative Agent or such Lender, as applicable, with the
documentation referred to in Section 5.3(a) when required to do so, the Borrower shall
forthwith on demand fully indemnify the Administrative Agent or such Lender for any
incremental taxes, interest, costs or penalties that may become payable by the
Administrative Agent or such Lender as a result of such failure.

          (iii) The Borrower’s obligations under this Section 5.3(a) shall survive the
termination of this Agreement and the payment of the Loans and all other amounts payable
hereunder.

          (b) Notwithstanding Section 5.3(a), the Borrower shall not be required to indemnify or pay any
additional amounts in respect of withholding tax applicable to any amount payable under this
Agreement pursuant to Section 5.3(a) above to any Non-U.S. Lender, except if any such Loans were
assigned, participated or transferred to such Non-U.S. Lender at the request of the Borrower or
were assigned, participated or transferred to such Non-U.S. Lender following the occurrence of and
during the continuance of an Event of Default pursuant to Section 10.1 or 10.5.

          (c) Each Non-U.S. Lender shall:

          (i) deliver to the Borrower and the Administrative Agent two copies of either (x) in
the case of a Non-U.S. Lender claiming exemption from U.S. Federal withholding tax under
Section 871(h) or 881(c) of the Code with respect to payments of “portfolio interest”,
United States Internal Revenue Service Form W-8BEN, (together with a

29

 

certificate representing that such Non-U.S. Lender is not a bank for purposes of
Section 881(c) of the Code, is not a 10-percent shareholder (within the meaning of Section
871(h)(3)(B) of the Code) of the Borrower and is not a controlled foreign corporation
related to the Borrower (within the meaning of Section 864(d)(4) of the Code)), or (y)
Internal Revenue Service Form W-8BEN or W-8ECI, in each case properly completed and duly
executed by such Non-U.S. Lender claiming complete exemption from, or reduced rate of, U.S.
Federal withholding tax on payments by the Borrower under this Agreement;

          (ii) deliver to the Borrower and the Administrative Agent two further copies of any
such form or certification (or any applicable successor form) on or before the date that any
such form or certification expires or becomes obsolete and after the occurrence of any event
requiring a change in the most recent form previously delivered by it to the Borrower; and

          (iii) obtain such extensions of time for filing and complete such forms or
certifications as may reasonably be requested in writing by the Borrower or the
Administrative Agent;

unless, in any such case, any change in treaty, law or regulation, has occurred prior to the date
on which any such delivery would otherwise be required that renders any such form inapplicable or
would prevent such Lender from duly completing and delivering any such form with respect to it and
such Lender so advises the Borrower and the Administrative Agent. Each Person that shall become a
Participant pursuant to Section 12.6 or a Lender pursuant to Section 12.6 shall, upon the
effectiveness of the related transfer, be required to provide all the forms and statements required
pursuant to this Section 5.3(c), provided that in the case of a Participant such Participant shall
furnish all such required forms and statements to the Lender from which the related participation
shall have been purchased.

          (d) If the Borrower determines in good faith that a reasonable basis exists for contesting any
taxes for which indemnification has been demanded hereunder, the relevant Lender or the
Administrative Agent, as applicable, shall cooperate with the Borrower in challenging such taxes at
the Borrower’s expense if so requested by the Borrower. If any Lender or the Administrative Agent,
as applicable, receives a refund of, or credit for, a Tax for which a payment has been made by the
Borrower pursuant to this Agreement, which refund or credit in the good faith judgment of such
Lender or the Administrative Agent, as the case may be, is attributable to such payment made by the
Borrower, then the Lender or the Administrative Agent, as the case may be, shall reimburse the
Borrower for such amount as the Lender or the Administrative Agent, as the case may be, determines
to be the proportion of the refund or credit as will leave it, after such reimbursement, in no
better or worse position than it would have been in if the payment had not been required. A Lender
or Administrative Agent shall claim any refund or credit that it determines is available to it,
unless it concludes in its reasonable discretion that it would be adversely affected by making such
a claim. Neither such Lender nor the Administrative Agent shall be obliged to disclose any
information regarding its tax affairs or computations to the Borrower in connection with this
paragraph (d) or any other provision of this Section 5.3.

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          5.4 Computations of Interest and Fees.

          (a) All interest and fees hereunder shall be computed on the basis of a year of 360 days,
except that interest computed by reference to the ABR at times when the ABR is based on the prime
rate of the Administrative Agent shall be computed on the basis of a year of 365 days (or 366 days
in a leap year), and in each case shall be payable for the actual number of days elapsed (including
the first day but excluding the last day). The applicable ABR or LIBOR rate shall be determined by
the Administrative Agent, and such determination shall be conclusive absent manifest error.

          (b) All interest payments to be made under this Agreement shall be paid without allowance or
deduction for deemed re-investment or otherwise, both before and after maturity and before and
after default and/or judgment, if any, until payment of the amount on which such interest is
accruing, and interest will accrue on overdue interest, if any.

          (c) The amount of costs and expenses required to be paid or reimbursed by the Borrower
pursuant to Section 12.5 or any other provision of this Agreement shall bear interest until paid,
as well after as before demand, default, maturity and judgment, at the highest rate provided for in
Section 2.8(c).

          (d) If interest is not paid on the indebtedness of the Borrower to the Lenders hereunder, or
any part thereof, as and when interest is due and payable hereunder, unpaid interest shall bear
interest until paid, as well after as before demand, default, maturity and judgment, at the rates
provided for in Section 2.8(c).

ARTICLE 6

CONDITIONS PRECEDENT

          The effectiveness of Section 2.1(a) shall be subject to satisfaction of the following
conditions precedent on or before December 31, 2007:

          (a) Credit Agreement. The Administrative Agent shall have received this Agreement,
executed and delivered by a duly authorized officer of each of the parties hereto.

          (b) Closing Certificate. The Administrative Agent shall have received a certificate of
the Borrower, dated the Closing Date, substantially in the form of Exhibit C, with
appropriate insertions, executed by the President or any Vice President and the Secretary or
any Assistant Secretary of the Borrower.

          (c) Proceedings of the Borrower. The Administrative Agent shall have received a copy
of the resolutions, in form and substance satisfactory to the Administrative Agent, of the
Board of Directors of the Borrower (or a duly authorized committee thereof) authorizing (a)
the execution, delivery and performance of this Agreement (and any agreements relating
thereto) and (b) the extensions of credit contemplated hereunder.

31

 

          (d) Organic Documents. The Administrative Agent shall have received true and complete
copies of the articles of incorporation and by-laws of the Borrower and a certificate of
good standing with respect to the Borrower issued by its jurisdiction of incorporation or
organization.

          (e) Fees. The Administrative Agent shall have received the fees referred to in Section
3.1 to be received on the Closing Date.

          (f) Consummation of Acquisition. The Acquisition shall have been consummated
substantially in accordance with the Asset Sale Agreement, subject to such amendments
thereto or waivers thereof as are not adverse to the interests of the Lenders in any
material respect or which have been reasonably agreed to by the Arranger.

          (g) Legal Opinions. The Administrative Agent shall have received in form and substance
reasonably satisfactory to it the executed legal opinions, each dated the Closing Date, of
(i) special New York counsel to the Borrower with respect to the status and capacity of the
Borrower, the due authorization, execution and delivery of this Agreement by the Borrower,
the validity, binding effect, legality and enforceability of this Agreement, compliance with
the Organic Documents of the Borrower and with applicable law and such other matters as the
Arranger may reasonably request in form and substance satisfactory to the Arranger (and the
Borrower hereby requests such counsel to deliver such opinion), (ii) special Michigan
counsel to the Borrower with respect to the status and capacity of the Borrower, the due
authorization, execution and delivery of this Agreement by the Borrower, the validity,
binding effect, legality and enforceability of this Agreement, compliance with the Organic
Documents of the Borrower and with applicable law and such other matters as the Arranger may
reasonably request in form and substance satisfactory to the Arranger (and the Borrower
hereby requests such counsel to deliver such opinion) and (iii) Milbank, Tweed, Hadley &
McCloy LLP, special New York counsel to the Arranger (and the Arranger hereby instructs such
counsel to deliver such opinion to the Lenders).

          (h) No Default; Representations and Warranties. At the time of making the Loans on the
Closing Date and also after giving effect thereto (i) there shall exist no Default or Event
of Default and (ii) all representations and warranties made by the Borrower contained in
Sections 7.2, 7.12 and 7.13 shall be true and correct in all material respects with the same
effect as though such representations and warranties had been made on and as of the Closing
Date (except where such representations and warranties expressly relate to an earlier date,
in which case such representations and warranties shall have been true and correct in all
material respects as of such earlier date).

          (i) Notice of Borrowing. The Administrative Agent shall have received a Notice of
Borrowing (whether in writing or by telephone) meeting the requirements of Section 2.3.

               The obligation of any Lender to make its initial extension of credit hereunder is also subject
to the payment by the Borrower of such fees as the Borrower shall have agreed to pay to any Lender
or the Administrative Agent in connection herewith.

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ARTICLE 7

REPRESENTATIONS AND WARRANTIES

          In order to induce the Lenders to enter into this Agreement and to make the Loans as provided
for herein, the Borrower (as to itself and each of its Subsidiaries) makes the following
representations and warranties to, and agreements with, the Lenders, all of which shall survive the
execution and delivery of this Agreement and the making of the Loans.

          7.1 Organizational Status.

          The Borrower is validly organized and existing and in good standing under the laws of the
state or jurisdiction of its incorporation or organization, is duly qualified to do business and is
in good standing as a foreign entity in each jurisdiction where the nature of its business requires
such qualification (except where the failure to be so qualified could not reasonably be expected to
result in a Material Adverse Effect), and has full power and authority and holds all requisite
governmental licenses, permits and other approvals to enter into and perform its obligations under
this Agreement, to own and hold under lease its property and to conduct its business substantially
as currently conducted by it.

          7.2 Capacity, Power and Authority.

          The Borrower has the capacity, power and authority to execute, deliver and carry out the terms
and provisions of this Agreement and has taken all necessary action, partnership, corporate or
otherwise, to authorize the execution, delivery and performance of this Agreement. The Borrower
has duly executed and delivered this Agreement and this Agreement constitutes the legal, valid and
binding obligation of the Borrower enforceable in accordance with its terms, except as the
enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting
creditors’ rights generally and subject to general principles of equity.

          7.3 No Violation.

          Neither the execution, delivery nor performance by the Borrower of this Agreement nor
compliance with the terms and provisions thereof and the other transactions contemplated therein
will (a) contravene any applicable provision of any material law, statute, rule, regulation, order,
writ, injunction or decree of any court or Governmental Authority, (b) result in any breach of any
of the terms, covenants, conditions or provisions of, or constitute a default under, or result in
the creation or imposition of (or the obligation to create or impose) any Lien upon any of the
property or assets of the Borrower or any of its Subsidiaries pursuant to, the terms of any
material indenture, loan agreement, lease agreement, mortgage, deed of trust, agreement or other
material instrument to which the Borrower or any of its Subsidiaries is a party or by which it or
any of its property or assets is bound or (c) violate any provision of the Borrower’s Organic
Documents.

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          7.4 Litigation.

          There are no actions, suits or proceedings pending or, to the knowledge of the Borrower or any
Subsidiary (after due internal inquiry), threatened with respect to the Business, the Borrower or
any of its Subsidiaries that could reasonably be expected to result in a Material Adverse Effect.

          7.5 Governmental Approvals.

          No order, consent, approval, license, authorization, or validation of, or filing, recording or
registration with, or exemption by, or notice to, any Governmental Authority (other than those that
have been, or on the Closing Date will be, obtained and in full force and effect) is required to
authorize or is required in connection with (a) the execution, delivery and performance of this
Agreement and (b) the legality, validity, binding effect or enforceability of this Agreement.

          7.6 True and Complete Disclosure.

          To the knowledge of the Borrower, after due inquiry:

          (a) All factual information and data (taken as a whole) heretofore or contemporaneously
furnished (other than any projections and pro forma financial information), by or on behalf
of the Borrower or any of its Subsidiaries or any of their respective authorized
consultants, agents or representatives in writing to the Administrative Agent and/or any
Lender on or before the Closing Date (including all information contained in this Agreement)
for purposes of or in connection with this Agreement or any transaction contemplated herein
was true and complete in all material respects on the date as of which such information or
data is dated or certified and did not contain any untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements contained therein,
taken as a whole, not materially misleading at such time in light of the circumstances under
which such statements were made.

          (b) The projections and pro forma financial information contained in the information
and data referred to in paragraph (a) above were prepared in good faith based upon
assumptions believed by such Persons to be reasonable at the time made, it being recognized
by the Lenders that such projections as to future events are not to be viewed as facts and
that actual results during the period or periods covered by any such projections may differ
from the projected results.

          7.7 Financial Condition; Financial Statements.

          The Borrower has heretofore furnished to the Lenders the consolidated balance sheet of the
Borrower and its Subsidiaries as at the end of the fiscal years ended December 31, 2005 and
December 31, 2006 and the related consolidated statement of operations for such fiscal years, and
the related consolidated statement of cash flows for such fiscal years. Such financial statements
present fairly in all material respects the consolidated financial position and results of
operations and cash flows of the Borrower and its Subsidiaries as of such dates and for such

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periods in accordance with GAAP consistently applied, subject to year-end audit adjustments
and the absence of footnotes.

          7.8 Tax Returns and Payments.

          Each of the Borrower and its Subsidiaries has filed all material tax returns, domestic and
foreign, required to be filed by it and has paid all material taxes and assessments payable by it
that have become due, other than those not yet delinquent or contested in good faith. The Borrower
and each of its respective Subsidiaries have paid, or have provided adequate reserves (in the good
faith judgment of the management of the Borrower) in accordance with GAAP for the payment of, all
material income taxes applicable for all prior fiscal years and for the current fiscal year to the
Closing Date.

          7.9 Environmental Matters.

          Except as set forth in Schedule II:

          (a) Other than instances of noncompliance that could not reasonably be expected to have
a Material Adverse Effect: (i) the Borrower and each of its Subsidiaries are in compliance
with all Environmental Laws in all jurisdictions in which the Borrower and each of its
Subsidiaries are currently doing business (including having obtained all material permits
required under Environmental Laws) and (ii) the Borrower will comply and cause each of its
Subsidiaries to comply with all such Environmental Laws (including all permits required
under Environmental Laws); and

          (b) Neither the Borrower nor any of its Subsidiaries has treated, stored, transported
or disposed of Hazardous Materials at or from any currently or formerly owned Real Estate or
facility relating to its business in a manner that could reasonably be expected to have a
Material Adverse Effect.

          7.10 Properties.

          The Borrower and each of its Subsidiaries has good title to or a leasehold or easement
interest in all of its properties that are necessary for the operation of its respective business
as currently conducted and as proposed to be conducted, free and clear in each case of all Liens
(other than any Liens permitted by this Agreement) except where the failure to have such good title
could not reasonably be expected to have a Material Adverse Effect.

          7.11 Pension and Welfare Plans.

          During the twelve-consecutive-month period prior to the Closing Date, except as could not
reasonably be expected have a Material Adverse Effect, (a) no steps have been taken to terminate
any Pension Plan, (b) no contribution failure has occurred with respect to any Pension Plan
sufficient to give rise to a Lien under Section 302(f) of ERISA, (c) no condition exists or event
or transaction has occurred with respect to any Pension Plan which might result in the incurrence
by the Borrower or any member of the Controlled Group of any liability, fine or penalty and (d)
except as disclosed in Schedule III, neither the Borrower nor any member of the Controlled Group
has any contingent liability with respect to any post-retirement benefit under a

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Welfare Plan, other than liability for continuation coverage described in Part 6 of Title I of
ERISA.

          7.12 Regulations U and X.

          Neither the making of any Loan hereunder nor the use of the proceeds thereof will violate the
provisions of F.R.S. Board Regulation U or Regulation X.

          7.13 Investment Company Act.

          Neither the Borrower nor any of its Subsidiaries is an “investment company” within the meaning
of the Investment Company Act of 1940, as amended.

          7.14 No Material Adverse Change.

          There has been no material adverse change in the business, assets, operations, property or
financial condition of the Borrower and its Subsidiaries taken as a whole since December 31, 2006.

          7.15 Deemed Repetition of Representations and Warranties.

          The representations and warranties set out in Sections 7.1 to 7.13 (and, in the case of
Closing Date, section 7.14) inclusive will be deemed to be repeated by the Borrower on the Closing
Date and on the date of each request by the Borrower for a conversion or continuation of Borrowings
and as of the date on which a Successor Borrower assumes all of the obligations of the Borrower
under the Credit Documents pursuant to Section 9.2(a) (but after giving effect to such assumption)
except to the extent that on or prior to such date (a) the Borrower has advised the Administrative
Agent in writing of a variation in any such representation or warranty, and (b) the Required
Lenders have approved such variation, and except where such representations and warranties
expressly relate to an earlier date, in which case such representations and warranties shall have
been true and correct in all material respects as of such earlier date.

ARTICLE 8

AFFIRMATIVE COVENANTS

          The Borrower (on its own behalf and on behalf of each of its Subsidiaries) hereby covenants
and agrees that on the Closing Date and thereafter, for so long as this Agreement is in effect and
until the Maturity Date:

          8.1 Information Covenants.

          The Borrower will furnish to each Lender and the Administrative Agent:

          (a) Annual Financial Statements. As soon as available and in any event on or before
the date that is 90 days after the end of each fiscal year of the Borrower, the consolidated
balance sheet of the Borrower and its Subsidiaries and Newco and its Subsidiaries as at the
end of such fiscal year and the related consolidated statement of operations and cash flows
for such fiscal year prepared in accordance with GAAP, setting

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forth comparative consolidated figures for the preceding fiscal year, and certified by
independent chartered accountants of recognized national standing whose opinion shall not be
qualified as to the scope of audit or as to the status of the Borrower or any of its
Subsidiaries as a going concern, together in any event with a certificate of such accounting
firm stating that in the course of its regular audit of the business of the Borrower and its
Subsidiaries, which audit was conducted in accordance with generally accepted auditing
standards, such accounting firm has obtained no knowledge of any Default or Event of Default
relating to Section 9.4 that has occurred and is continuing or, if in the opinion of such
accounting firm such a Default or Event of Default has occurred and is continuing, a
statement as to the nature thereof.

          (b) Quarterly Financial Statements. As soon as available and in any event on or before
the date that is 45 days after the end of each of the first three fiscal quarters in each
fiscal year of the Borrower, the consolidated balance sheet of the Borrower and its
Subsidiaries and Newco and its Subsidiaries as at the end of such fiscal quarter and the
related consolidated statement of operations for such fiscal quarter and for the elapsed
portion of the fiscal year ended with the last day of such fiscal quarter, and the related
consolidated statement of cash flows for such fiscal quarter and for the elapsed portion of
the fiscal year ended with the last day of such fiscal quarter, and setting forth
comparative consolidated figures for the related periods in the prior fiscal year or, in the
case of such consolidated balance sheet, for the last day of the prior fiscal year, and
prepared in accordance with GAAP, all of which shall be certified by an Authorized Officer
of the Borrower, subject to changes resulting from audit and normal year-end audit
adjustments.

          (c) Officer’s Certificates. At the time of the delivery of the financial statements
provided for in Sections 8.1(a) and (b), a certificate of an Authorized Officer of the
Borrower in substantially the form of Exhibit C (a “Compliance Certificate”) to the effect
that no Default or Event of Default exists or, if any Default or Event of Default does
exist, specifying the nature and extent thereof, which certificate shall be in form and
detail satisfactory to the Administrative Agent, acting reasonably, and setting forth the
calculations required to establish whether the Borrower was in compliance with the
provisions of Section 9.4 as at the end of such fiscal year or period, as the case may be.

          (d) Notice of Default or Litigation. Promptly after an Authorized Officer of the
Borrower or any of its Subsidiaries obtains knowledge thereof, notice of (i) the occurrence
of any event that constitutes a Default or Event of Default, which notice shall specify the
nature thereof, the period of existence thereof and what action the Borrower proposes to
take with respect thereto and (ii) any litigation or governmental proceeding pending or
threatened against the Borrower or any of its Subsidiaries that could reasonably be expected
to result in a Material Adverse Effect, together with a certificate of the Chief Financial
Officer of the Borrower (in detail reasonably satisfactory to the Administrative Agent)
setting forth the calculations required to establish whether the Borrower and its
Subsidiaries are in pro forma compliance with Section 9.4 of this Agreement.

          (e) Environmental Matters. Promptly after an Authorized Officer of the Borrower or any
of its Subsidiaries obtains knowledge or notice of any one or more of the

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following environmental matters, unless such environmental matters would not,
individually or when aggregated with all other such matters, be reasonably expected to
result in a Material Adverse Effect:

          (i) Any pending or threatened Environmental Claim against the Borrower or any
of its Subsidiaries or any Real Estate (as defined below);

          (ii) Any condition or occurrence that (x) results in non-compliance by the
Borrower or any of its Subsidiaries with any applicable Environmental Law or (y)
could reasonably be anticipated to form the basis of an Environmental Claim against
the Borrower or any of its Subsidiaries or any Real Estate;

          (iii) Any condition or occurrence on any Real Estate that could reasonably be
anticipated to cause such Real Estate to be subject to any restrictions on the
ownership, occupancy, use or transferability of such Real Estate under any
Environmental Law; and

          (iv) The taking of any removal or remedial action in response to the actual or
alleged presence of any Hazardous Material on any Real Estate.

          All such notices shall describe in reasonable detail the nature of the claim,
investigation, condition, occurrence or removal or remedial action and Borrower’s response
thereto. The term “Real Estate” shall mean land, buildings and improvements owned or leased
by the Borrower or any of its Subsidiaries, but excluding all operating fixtures and
equipment, whether or not incorporated into improvements.

          (f) Pension Plans. Promptly after an Authorized Officer of the Borrower or any of its
Subsidiaries obtains knowledge thereof where the liability, individually or in the
aggregate, could reasonably be expected to result in a Material Adverse Effect, notice of
and copies of all documentation relating to (i) the institution of any steps by any Person
to terminate any Pension Plan, (ii) the failure to make a required contribution to any
Pension Plan if such failure is sufficient to give rise to a Lien under Section 302(f) of
ERISA, (iii) the taking of any action with respect to a Pension Plan which could result in
the requirement that the Borrower or any of its Subsidiaries furnish a bond or other
security to such Pension Plan, or (iv) the occurrence of any event with respect to any
Pension Plan which could result in the incurrence by the Borrower or any of its Subsidiaries
of any material liability, fine or penalty.

          (g) Other Information. Promptly upon filing thereof, copies of any filings or
registration statements with, and reports to, any Governmental Authority in any relevant
jurisdiction by the Borrower or any of its Subsidiaries pursuant to applicable securities
laws (other than amendments to any registration statement (to the extent such registration
statement, in the form it becomes effective, is delivered to the Lenders), exhibits to any
registration statement) and copies of all financial statements, proxy statements, notices
and reports that the Borrower or any of its Subsidiaries shall send to the holders of any
publicly issued securities of the Borrower and/or any of its Subsidiaries in their capacity
as such holders (in each case to the extent not theretofore delivered to the Lenders

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pursuant to this Agreement) and, with reasonable promptness, such other information
(financial or otherwise) as the Administrative Agent on its own behalf or on behalf of any
Lender may reasonably request in writing from time to time.

          8.2 Books, Record and Inspections.

          The Borrower will, and will cause each of its Subsidiaries to, (i) permit officers and
designated representatives of the Administrative Agent or the Required Lenders to visit and inspect
any of the properties or assets of the Borrower and its Subsidiaries in whomever’s possession to
the extent that it is within the Borrower’s or such Subsidiary’s control to permit such inspection,
and to examine the books of account of the Borrower and any such Subsidiary and discuss the
affairs, finances and accounts of the Borrower and of any such Subsidiary with, and be advised as
to the same by, its and their officers and independent accountants, and (ii) permit officers and
designated representatives of Lenders to view copies of contracts of the Borrower and its
Subsidiaries (subject to reasonable confidentiality arrangements established by the Borrower), all
at such reasonable times during normal business hours and intervals and to such reasonable extent
as the Administrative Agent, the Required Lenders or the Lenders, as the case may be, may desire.

          8.3 Maintenance of Insurance.

          The Borrower will, and will cause each of its Subsidiaries to, at all times maintain in full
force and effect, with insurance companies that the Borrower believes (in the good faith judgment
of the management of the Borrower) are financially sound and responsible at the time the relevant
coverage is placed or renewed, insurance in at least such amounts and against at least such risks
(and with such risk retentions) as are usually insured against in the same general area by
companies engaged in the same or a similar business.

          8.4 Payment of Taxes.

          The Borrower will pay and discharge, and will cause each of its Subsidiaries to pay and
discharge, all material taxes, assessments and governmental charges or levies imposed upon it or
upon its capital, income or profits, or upon any properties belonging to it, prior to the date on
which material penalties attach thereto, and all lawful material claims that, if unpaid, could
reasonably be expected to become a material Lien upon any properties of the Borrower or any of its
Subsidiaries; provided that neither the Borrower nor any of its Subsidiaries shall be required to
pay any such tax, assessment, charge, levy or claim that is being contested in good faith and by
proper proceedings if it has maintained adequate reserves (in the good faith judgment of the
management of the Borrower) with respect thereto in accordance with GAAP.

          8.5 Organizational Existence.

          The Borrower will do, and will cause each of its Subsidiaries to do, or cause to be done, all
things necessary to preserve and keep in full force and effect its existence and its corporate or
other organizational rights and authority, except to the extent that the failure to do so could not
reasonably be expected to have a Material Adverse Effect; provided that the Borrower and its
Subsidiaries may consummate any transaction permitted under Section 9.2.

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          8.6 Compliance with Statutes, Obligations, etc.

          The Borrower will, and will cause each of its Subsidiaries to, comply with all applicable
laws, rules, regulations and orders (including Environmental Laws), except to the extent the
failure to do so could not reasonably be expected to have a Material Adverse Effect.

          8.7 Good Repair.

          The Borrower will, and will cause each of its Subsidiaries to, ensure that its properties and
equipment used or useful in its business in whomever’s possession they may be to the extent that it
is within the Borrower’s or its Subsidiary’s control to cause the same, are kept in good repair,
working order and condition, normal wear and tear excepted, and that from time to time there are
made in such properties and equipment all needful and proper repairs, renewals, replacements,
extensions, additions, betterments and improvements thereto, to the extent and in the manner
customary for companies in similar businesses and consistent with third party leases, except in
each case to the extent the failure to do so could not be reasonably expected to have a Material
Adverse Effect.

          8.8 Transactions with Affiliates.

          The Borrower will conduct, and will cause each of its Subsidiaries to conduct, all
transactions with any of its Affiliates on terms that are substantially as favorable to the
Borrower or such Subsidiary as it would obtain in a comparable arm’s-length transaction with a
Person that is not an Affiliate; provided that the foregoing restrictions shall not apply to (a)
transactions in the ordinary course of business at prices and on terms and conditions not less
favorable to the Borrower or such Subsidiary than could be obtained on an arm’s length basis from
unrelated third parties, (b) transactions between and among the Borrower and its wholly owned
Subsidiaries that do not involve any other Affiliate and (c) transactions permitted by Section 9.2.

          8.9 End of Fiscal Years; Fiscal Quarters.

          The Borrower will, for financial reporting purposes, cause (a) each of its, and each of its
Subsidiaries’, fiscal years to be comprised of twelve calendar months ending on December 31 of each
year and (b) each of its, and each of its Subsidiaries’, fiscal quarters to end on dates consistent
with such fiscal year-end; provided that the Borrower may, upon written notice to the
Administrative Agent, change the financial reporting convention specified above to any other
financial reporting convention reasonably acceptable to the Administrative Agent, in which case the
Borrower and the Administrative Agent will, and are hereby authorized by the Lenders to, make any
adjustments to this Agreement that are necessary in order to reflect such change in financial
reporting.

          8.10 Use of Proceeds.

          The Borrower will use the proceeds of all the Loans only for the purposes set forth in Section
2.1(b).

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          8.11 Changes in Business.

          From the Closing Date, the Borrower and its Subsidiaries taken as a whole will not
fundamentally and substantively alter the character of their business taken as a whole from the
business conducted by the Borrower and its Subsidiaries taken as a whole on the Closing Date
following the consummation of the Transactions and other business activities incidental or related
to any of the foregoing (the “Business”).

ARTICLE 9

NEGATIVE COVENANTS

          The Borrower (on its own behalf and on behalf of each of its Subsidiaries) hereby covenants
and agrees that on the Closing Date and thereafter until the Maturity Date:

          9.1 Limitation on Liens.

          The Borrower will not, and will not permit any of its Subsidiaries to, create, incur, assume
or suffer to exist any Lien upon any property or assets of any kind (real or personal, tangible or
intangible) of the Borrower or any of its Subsidiaries, whether now owned or hereafter acquired,
except:

          (a) Permitted Liens;

          (b) Liens (i) on assets of ITC (of the same type as constitute collateral under the ITC
First Mortgage Indenture on the date hereof) to secure Indebtedness of ITC under the ITC
First Mortgage Indenture, (ii) on assets of METC (of the same type as constitute collateral
under the METC First Mortgage Indenture on the date hereof) to secure Indebtedness of METC
under the METC First Mortgage Indenture and (iii) on assets of any other Subsidiary (of the
same type that constitute collateral under the ITC First Mortgage Indenture and/or the METC
First Mortgage Indenture on the date hereof) to secure Indebtedness of any Subsidiary under
any similar mortgage bond indenture;

          (c) Liens existing on the Closing Date and as set out on Schedule IV;

          (d) Liens existing on the assets or Capital Stock of any Person that becomes a
Subsidiary, or existing on assets acquired; provided that such Liens attach at all times
only to the same assets that such Liens attached to and secure only the same Indebtedness
that such Liens secured, immediately prior to such acquisition;

          (e) Liens in favor of the Borrower or any Subsidiary;

          (f) Liens in favor of the United States of America or any State thereof, or any
department, agency or instrumentality or political subdivision of the United States of
America or any State thereof or political entity affiliated therewith, to secure partial,
progress, advance or other payments, or other obligations, pursuant to any contract or
statute to secure any Indebtedness incurred for the purpose of financing all or any part of

41

 

the cost of acquiring, constructing or improving property subject to such Liens
(including Liens incurred in connection with pollution control, industrial revenue or
similar financings);

          (g) Liens on any property created, assumed or otherwise brought into existence in
contemplation of the sale or other disposition of the underlying property, whether directly
or indirectly, by way of share disposition or otherwise; provided that 180 days from the
creation of such Liens the Borrower or the relevant Subsidiary shall have disposed of such
property and any Indebtedness secured by such Liens shall be without recourse to the
Borrower or any Subsidiary;

          (h) Rights of other Persons to take minerals, timber, gas, water or other products
produced by the Borrower or by other Persons on the property of the Borrower;

          (i) Liens created by or resulting from any litigation or other proceeding which is
being contested in good faith by appropriate proceedings, including Liens arising out of
judgments or awards against the Borrower or any Subsidiary with respect to which the
Borrower or such Subsidiary is in good faith prosecuting an appeal or proceedings for
review; or Liens that the Borrower or any Subsidiary incurs for the purpose of obtaining a
stay or discharge in the course of any litigation or other proceeding to which the Borrower
or such Subsidiary is a party;

          (j) Liens which have been bonded for the full amount in dispute;

          (k) additional Liens so long as the aggregate outstanding principal amount of the
obligations so secured does not exceed the greater of (x) 10% of Net Tangible Assets and (y)
10% of Consolidated Capitalization at any time;

          (l) Liens on any property acquired, constructed or improved by the Borrower or any
Subsidiary after the date hereof which are created or assumed contemporaneously with such
acquisition, construction or improvement, or within 270 days after the completion thereof,
to secure or provide for the payment of all or any part of the cost of such acquisition,
construction or improvement (including related expenditures capitalized for Federal income
tax purposes in connection therewith) incurred after the date hereof; and

          (m) the replacement, extension or renewal of any Lien permitted by clauses (a) through
(l) above upon or in the same assets theretofore subject to such Lien or the replacement,
extension or renewal (without increase in the amount or change in any direct or contingent
obligor except to the extent otherwise permitted hereunder) of the Indebtedness secured
thereby.

          9.2 Limitation on Fundamental Changes.

          The Borrower will not enter into any merger or consolidation, or liquidate, wind up or
dissolve itself (or suffer any liquidation or dissolution), or convey, sell, lease, assign,
transfer or otherwise dispose of, all or substantially all its business units, assets or other
properties, except that:

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          (a) any Subsidiary of the Borrower or any other Person may be merged or consolidated
(including by way of liquidation or winding up) with or into the Borrower; provided that (i)
the Borrower shall be the continuing or surviving entity or, so long as after giving effect
to such merger or consolidation such Person’s debt rating shall be in “Category 5” or
higher, as determined pursuant to the definition of “Applicable Margin”, the Person formed
by or surviving any such merger or consolidation (if other than the Borrower) shall be an
entity organized or existing under the laws of the United States or any State thereof, (the
Borrower or such Person, as the case may be, being herein referred to as the “Successor
Borrower”), (ii) the Successor Borrower shall expressly assume all the obligations of the
Borrower under this Agreement pursuant to a supplement hereto in form and substance
reasonably satisfactory to the Administrative Agent, (iii) no Default or Event of Default is
then existing and no Default or Event of Default would result from the consummation of such
merger or consolidation, (iv) the Borrower shall be in compliance, on a pro forma basis
after giving effect to such merger or consolidation, with the covenants set forth in Section
9.4 as such covenants are recomputed as at the last day of the most recently ended fiscal
quarter as if such merger or consolidation had occurred on such day, and (v) the Borrower
shall have delivered to the Administrative Agent an officer’s certificate, in form and
substance reasonably satisfactory to the Administrative Agent, certifying the compliance
referred to in clause (iv) above and stating that such merger or consolidation and such
supplement to this Agreement comply with this Agreement and a legal opinion (in form and
substance reasonably satisfactory to the Administrative Agent) with respect to this
Agreement to be delivered, if any, pursuant to clause (ii) above; provided further that if
the foregoing are satisfied, the Successor Borrower (if other than the Borrower) will
succeed to, and be substituted for, the Borrower under this Agreement; and

          (b) the Borrower may enter into any merger or consolidation for the purpose of changing
its organizational form from a corporation to a limited liability company or from a limited
liability company to a corporation; provided that such change has no adverse affect on the
rights of the Finance Parties.

          9.3 Limitation on Dividends.

          If any Default or Event of Default then exists or would result therefrom, the Borrower will
not declare or pay any distributions (other than dividends payable solely in its capital stock) or
return any capital to its shareholders or make any other distribution, payment or delivery of
property or cash to its shareholders as such, or redeem, retire, purchase or otherwise acquire,
directly or indirectly, for consideration, any of its Capital Stock or the Capital Stock of any
direct or indirect shareholder of the Borrower now or hereafter outstanding (or any warrants for or
options or stock appreciation rights in respect of any of its Capital Stock), or set aside any
funds for any of the foregoing purposes, or permit any of its Subsidiaries to purchase or otherwise
acquire for consideration any Capital Stock of the Borrower, now or hereafter outstanding (or any
options or warrants or stock appreciation rights issued by such Person with respect to its Capital
Stock), provided that the Borrower may take any of the actions in this Section 9.3 so long as after
giving effect to such action the Borrower’s debt rating shall be in “Category 5” or higher, as
determined pursuant to the definition of “Applicable Margin”.

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          9.4 Financial Covenants.

          (a) Total Debt to Capitalization Ratio. The Borrower will not permit the Total Debt to
Capitalization Ratio to be greater than 85% at any time on or after the Closing Date.

          (b) Newco Debt to Capitalization Ratio. The Borrower will not permit the Newco Debt to
Capitalization Ratio to be greater than 60% at any time on or after the Closing Date.

          9.5 Limitation on Sale-Lease Back Transactions.

          The Borrower will not enter into any sale-leaseback transaction (a “Sale and Leaseback
Transaction”) involving any of its property or assets whether now owned or hereafter acquired,
whereby the Borrower sells or otherwise transfers such property or assets and thereafter leases or
subleases such property or assets or any part thereof or any other property or assets that the
Borrower intends to use for substantially the same purpose or purposes as the property or assets
sold or otherwise transferred unless (a) the Borrower would be entitled to incur Indebtedness
secured by a Lien on such property or assets pursuant to Section 9.1 or (b) the Attributable Value
of all Sale and Leaseback Transactions entered into pursuant to this Section 9.5 does not exceed
$20,000,000. A Sale and Leaseback Transaction shall not be deemed to result in the creation of a
Lien.

ARTICLE 10

EVENTS OF DEFAULT

          Each of the following specified events or occurrences described in Sections 10.1 through 10.9
below shall constitute an “Event of Default”:

          10.1 Payments.

          The Borrower shall (a) default in the payment when due of any principal of the Loans or (b)
default, and such default shall continue for five or more days, in the payment when due of any
interest on the Loans or any Fees or of any other amounts owing hereunder.

          10.2 Representations, etc.

          Any representation, warranty or statement made or deemed made by the Borrower herein or any
certificate delivered or required to be delivered pursuant hereto or thereto shall prove to be
untrue in any material respect on the date as of which made or deemed made (it being understood
that, for purposes of the foregoing, the truth of the representations and warranties set forth in
Section 7.6 shall be determined without reference to the knowledge of the Borrower).

          10.3 Covenants.

          The Borrower shall (a) default in the due performance or observance by it of any term,
covenant or agreement contained in Section 8.1(d), Section 8.11 or Article 9, or (b) default in the
due performance or observance by it of any term, covenant or agreement (other than those referred
to in Section 10.1 or 10.2 or clause (a) of this Section 10.3) contained in this Agreement

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and such default shall continue unremedied for a period of at least 30 days after the receipt
of written notice by the Borrower from the Administrative Agent or the Required Lenders.

          10.4 Default Under Other Agreements.

          (a) The Borrower or any of its Subsidiaries shall (i) default in any payment with respect to
any Indebtedness, in excess of $15,000,000 in the aggregate, beyond the period of grace, if any,
provided in the instrument or agreement under which such Indebtedness was created or (ii) default
in the observance or performance of any agreement or condition relating to any such Indebtedness or
contained in any instrument or agreement evidencing, securing or relating thereto beyond the period
of grace, if any, provided in the instrument or agreement under which such Indebtedness was
created, or any other event shall occur or condition exist, the effect of which default or other
event or condition is to cause, or to permit the holder or holders of such Indebtedness (or a
trustee or agent on behalf of such holder or holders) to cause, any such Indebtedness to become due
prior to its stated maturity; or

          (b) without limiting the provisions of clause (a) above, any such Indebtedness shall be
declared to be due and payable, or required to be prepaid other than by a regularly scheduled
required prepayment or as a mandatory prepayment, prior to the stated maturity thereof.

          10.5 Bankruptcy, etc.

          The Borrower or any Material Subsidiary shall commence a voluntary case concerning itself
under the Bankruptcy Code as now or hereafter in effect, or any successor thereto or any similar
legislation in any other applicable jurisdiction (collectively, the “Bankruptcy Code”); or an
involuntary case is commenced against the Borrower or any Material Subsidiary and the petition or
application is not contested within 10 days after commencement of the case; or an involuntary case
is commenced against the Borrower or any Material Subsidiary and the petition or application is not
dismissed within 45 days after commencement of the case; or a receiver, trustee, liquidator,
custodian or similar official is appointed for, or takes charge of, all or substantially all of the
property of the Borrower or any Material Subsidiary or the Borrower or any Material Subsidiary
commences any other proceeding under any reorganization, arrangement, adjustment of debt, relief of
debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or
hereafter in effect relating to the Borrower or any Material Subsidiary itself; or there is
commenced against the Borrower or any Material Subsidiary any such proceeding that remains
undismissed for a period of 45 days; or the Borrower or any Material Subsidiary is adjudicated
insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding
is entered; or the Borrower or any Material Subsidiary makes a general assignment for the benefit
of creditors, files under the Bankruptcy Act or takes a similar action under the Bankruptcy Act; or
any corporate or similar action is taken by the Borrower or any Material Subsidiary for the purpose
of effecting any of the foregoing; or the Borrower or any Material Subsidiary is unable to pay its
debts as they fall due, or makes a general assignment for the benefit of or a composition with its
creditors generally; or the Borrower or any Material Subsidiary takes any corporate or similar
action or other steps are taken or legal proceedings are started for its winding-up, dissolution,
administration or insolvent re-organization or for the appointment of a liquidator, administrator
or administrative receiver of it.

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          10.6 Non-ownership of Material Subsidiaries.

          The Borrower on any date is not the direct owner of 100% (or, if by reason of any Equity
Issuance by Newco, 95%) of the capital stock of Newco, or is not the direct or (through its
Subsidiaries) indirect owner of 100% of the capital stock of ITC or METC or at least 51% of the
capital stock of any of its other Material Subsidiaries or Newco is not the direct owner of 100% of
the capital stock of Interstate Power & Light.

          10.7 Judgments.

          One or more judgments or decrees shall be entered against the Borrower or any of its
Subsidiaries involving a liability of $15,000,000 or more in the aggregate for all such judgments
and decrees for the Borrower and its Subsidiaries (to the extent not paid or fully covered by
insurance provided by a carrier not disputing coverage) and any such judgments or decrees shall not
have been satisfied, vacated, discharged or stayed or bonded pending appeal within 60 days from the
entry thereof.

          10.8 Change of Ownership.

          A Change of Ownership shall occur.

          10.9 Pension Plans.

          Any of the following events shall occur with respect to any Pension Plan: (a) the institution
of any steps by the Borrower or any other Person to terminate a Pension Plan if, as a result of
such termination, the Borrower or any such member could be required to make a contribution to such
Pension Plan, or could reasonably expect to incur a liability or obligation to such Pension Plan in
respect of such termination; or (b) a contribution failure occurs with respect to any Pension Plan
sufficient to give rise to a Lien under section 302(f) of ERISA, where in each case under clauses
(a) or (b) such contribution, liability, obligation or Lien would reasonably be expected to have a
Material Adverse Effect.

          10.10 Remedies.

          Upon the occurrence of any Event of Default described above, and in any such event, and at any
time thereafter, if any Event of Default shall then be continuing, the Administrative Agent shall,
upon the written request of the Required Lenders, by written notice to the Borrower, take any or
all of the following actions, without prejudice to the rights of the Administrative Agent to
enforce its claims against the Borrower, except as otherwise specifically provided for in this
Agreement (provided that, if an Event of Default specified in Section 10.5 shall occur with respect
to the Borrower, the result that would occur upon the giving of written notice by the
Administrative Agent as specified in clauses (i) and (ii) below shall occur automatically without
the giving of any such notice): (i) declare all of the Commitments terminated, whereupon the
Commitment of each Lender shall forthwith terminate immediately; (ii) declare the principal of and
any accrued interest in respect of all Loans and all obligations owing hereunder to be, whereupon
the same shall become, forthwith due and payable without presentment, demand, protest or other
notice of any kind, all of which are hereby waived by the Borrower; and/or (iii) exercise any other
remedies that may be available under this Agreement or applicable law.

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     10.11 Remedies Cumulative.

     The rights and remedies of the Administrative Agent and the Lenders under this Agreement are
cumulative and are in addition to and not in substitution for any rights or remedies provided by
law or by equity, and any single or partial exercise by the Lenders of any right or remedy for a
default or breach of any term, covenant, condition or agreement herein contained shall not be
deemed to be a waiver of or to alter, affect, or prejudice any other right or remedy or other
rights or remedies to which the Lenders may be lawfully entitled for the same default or breach,
and any waiver by the Administrative Agent or the Lenders of the strict observance, performance or
compliance with any term, covenant, condition or agreement herein contained, and any indulgence
granted by the Administrative Agent or the Lenders shall be deemed not to be a waiver of any
subsequent default. In the event that the Administrative Agent or the Lenders shall have proceeded
to enforce any such right, remedy or power contained herein and such proceedings shall have been
discontinued or abandoned for any reason, by written agreement between the Lenders and the
Borrower, then in each such event the Borrower and the Lenders shall be restored to their former
positions and the rights, remedies and powers of the Lenders shall continue as if no such
proceedings had been taken.

ARTICLE 11

THE ADMINISTRATIVE AGENT

          Each of the Lenders hereby irrevocably appoints the Administrative Agent as its agent and
authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers
as are delegated to the Administrative Agent by the terms hereof, together with such actions and
powers as are reasonably incidental thereto.

          The bank serving as the Administrative Agent hereunder shall have the same rights and powers
in its capacity as a Lender as any other Lender and may exercise the same as though it were not the
Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and
generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate
thereof as if it were not the Administrative Agent hereunder.

          The Administrative Agent shall not have any duties or obligations except those expressly set
forth herein. Without limiting the generality of the foregoing, (a) the Administrative Agent shall
not be subject to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary rights and powers
expressly contemplated hereby that the Administrative Agent is required to exercise in writing as
directed by the Required Lenders (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 12.1), and (c) except as expressly set
forth herein, the Administrative Agent shall not have any duty to disclose, and shall not be liable
for the failure to disclose, any information relating to the Borrower or any of its Subsidiaries
that is communicated to or obtained by the bank serving as Administrative Agent or any of its
Affiliates in any capacity. The Administrative Agent shall not be liable for any action taken or
not taken by it with the consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as provided in Section
12.1) or in the absence of its

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own gross negligence or wilful misconduct. The Administrative Agent shall be deemed not to have knowledge of any Default
unless and until written notice thereof is given to the Administrative Agent by the Borrower or a
Lender, and the Administrative Agent shall not be responsible for or have any duty to ascertain or
inquire into (i) any statement, warranty or representation made in or in connection with this
Agreement, (ii) the contents of any certificate, report or other document delivered hereunder or in
connection herewith, (iii) the performance or observance of any of the covenants, agreements or
other terms or conditions set forth herein, (iv) the validity, enforceability, effectiveness or
genuineness of this Agreement or any other agreement, instrument or document, or (v) the
satisfaction of any condition set forth in Article 6 or elsewhere herein, other than to confirm
receipt of items expressly required to be delivered to the Administrative Agent.

          The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document or other
writing believed by it to be genuine and to have been signed or sent by the proper Person. The
Administrative Agent also may rely upon any statement made to it orally or by telephone and
believed by it to be made by the proper Person, and shall not incur any liability for relying
thereon. The Administrative Agent may consult with legal counsel (who may be counsel for the
Borrower), independent accountants and other experts selected by it, and shall not be liable for
any action taken or not taken by it in accordance with the advice of any such counsel, accountants
or experts.

          The Administrative Agent may perform any and all its duties and exercise its rights and powers
by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative
Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the preceding paragraphs
shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any
such sub-agent, and shall apply to their respective activities in connection with the syndication
of the credit facilities provided for herein as well as activities as Administrative Agent.

          Subject to the appointment and acceptance of a successor Administrative Agent as provided in
this paragraph, the Administrative Agent may resign at any time by notifying the Lenders and the
Borrower. Upon any such resignation, the Required Lenders shall have the right, with the consent
of the Borrower (not to be unreasonably withheld), to appoint a successor. If no successor shall
have been so appointed by the Required Lenders and shall have accepted such appointment within 30
days after the retiring Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may, on behalf of the Lenders, appoint a successor Administrative Agent which
shall be a bank with an office in New York, New York, or an Affiliate of any such bank. Upon the
acceptance of its appointment as Administrative Agent hereunder by a successor, such successor
shall succeed to and become vested with all the rights, powers, privileges and duties of the
retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its
duties and obligations hereunder. The fees payable by the Borrower to a successor Administrative
Agent shall be the same as those payable to its predecessor unless otherwise agreed between the
Borrower and such successor. After the Administrative Agent’s resignation hereunder, the
provisions of this Article and Section 12.5

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shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and
their respective Related Parties in respect of any actions taken or omitted to be taken by any of
them while it was acting as Administrative Agent.

          Each Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each
Lender also acknowledges that it will, independently and without reliance upon the Administrative
Agent or any other Lender and based on such documents and information as it shall from time to time
deem appropriate, continue to make its own decisions in taking or not taking action under or based
upon this Agreement, any related agreement or any document furnished hereunder or thereunder.

          Notwithstanding anything herein to the contrary the Sole Bookrunner and the Sole Lead Arranger
named on the cover page of this Agreement shall not have any duties or liabilities under this
Agreement, except in its capacity, if any, as a Lender.

ARTICLE 12

MISCELLANEOUS

     12.1 Amendments and Waivers.

     Neither this Agreement, nor any terms hereof or thereof may be amended, supplemented or
modified except in accordance with the provisions of this Section 12.1. The Required Lenders may
from time to time (a) enter into with the Borrower and Administrative Agent, as applicable, written
amendments, supplements or modifications hereto for the purpose of adding or amending any
provisions to this Agreement or changing in any manner the rights of the Lenders or of the Borrower
hereunder or thereunder, (b) waive, on such terms and conditions as the Required Lenders or the
Administrative Agent, as the case may be, may specify in such instrument, any of the requirements
of this Agreement or any Default or Event of Default and its consequences; provided that no such
waiver and no such amendment, supplement or modification shall directly (i) forgive any portion of,
or extend or waive the final scheduled maturity date of, any Loan, or reduce the stated rate of,
forgive any portion of or extend the date for the payment of any interest payable hereunder (other
than as a result of waiving the applicability of any post-default increase in interest rates) or
extend the final expiration date of any Lender’s Commitment or increase the amount of any of the
Commitments of any Lender, in each case without the written consent of each Lender whose Loan,
interest or Commitment is changed as set forth above thereby, or (ii) amend, modify or waive any
provision of this Section 12.1 or reduce the percentages specified in the definitions of the terms
“Required Lenders” or consent to the assignment or transfer by the Borrower of its rights and
obligations under this Agreement (except as permitted pursuant to Section 9.2), in each case
without the written consent of each Lender, or (iii) amend, modify or waive any provision of
Article 11 without the written consent of the then-current Administrative Agent, or (iv) amend
Section 5.2(a) to the extent that it relates to payments for the ratable account of Lenders without
the written consent of each Lender directly and adversely affected thereby, in each case without
the written consent of all the Lenders except as otherwise specifically provided in this Section
12.1.

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     Any such waiver and any such amendment, supplement or modification shall apply equally to each
of the affected Lenders and shall be binding upon the Borrower, such Lenders, the Administrative
Agent and all future holders of the affected Loans. In the case of any waiver, the Borrower, the
Lenders and the Administrative Agent shall be restored to their former positions and rights
hereunder, and any Default or Event of Default waived shall be deemed to be cured and not
continuing, it being understood that no such waiver shall extend to any subsequent or other Default
or Event of Default or impair any right consequent thereon.

     12.2 Notices.

     (a) Notices generally. All notices, requests and demands to or upon the respective parties
hereto to be effective shall be in writing (including by facsimile transmission) and, unless
otherwise expressly provided herein, if mailed and properly addressed with postage prepaid or if
properly addressed and sent by pre-paid courier service, shall be deemed given when received and,
if transmitted by facsimile, shall be deemed given when the confirmation of transmission thereof is
received by the transmitter, in each case addressed as follows in the case of the Borrower, the
Administrative Agent and as set forth on Schedule I in the case of each Lender (or as set forth in
the Assignment and Acceptance of any Lender which is an Assignee) or to such other address as may
be hereafter notified by the respective parties hereto:

	 	(i)	 	The Borrower:

ITC Holdings Corp.

39500 Orchard Hill Place,

Suite 200

Novi, MI 48375

Attention: Edward Rahill

Facsimile No.: (248) 374-7129

	 	(ii)	 	The Administrative Agent:

Lehman Commercial Paper Inc.

745 Seventh Avenue

New York, New York 10019

Attention: Maritza Ospina

Facsimile No.: (646) 758-4648

Telephone: (212) 526-6590

provided that any notice, request or demand to or upon the Administrative Agent or the Lenders
pursuant to Sections 2.3, 2.6, 2.10, 4.1 and 5.1 shall not be effective until received.

     (b) Electronic Communications. The Borrower agrees that the Administrative Agent may make
communications available to the Lenders by posting such communications on Intralinks or a
substantially similar electronic transmission system (the “Platform”). THE PLATFORM IS
PROVIDED “AS IS” AND “AS AVAILABLE”. THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE
ACCURACY OR COMPLETENESS OF

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THE COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR
ERRORS OR OMISSIONS IN THE COMMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY,
INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF
THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE AGENT PARTIES IN
CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL THE ADMINISTRATIVE AGENT OR
ANY OF ITS AFFILIATES OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ADVISORS
OR REPRESENTATIVES (COLLECTIVELY, THE “AGENT PARTIES”) HAVE ANY LIABILITY TO THE BORROWER,
ANY LENDER OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING DIRECT OR INDIRECT,
SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR
OTHERWISE) ARISING OUT OF THE BORROWER’S OR THE ADMINISTRATIVE AGENT’S TRANSMISSION OF
COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY AGENT PARTY IS FOUND
IN A FINAL NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE RESULTED PRIMARILY
FROM SUCH AGENT PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

     12.3 No Waiver; Cumulative Remedies.

     No failure to exercise and no delay in exercising, on the part of the Administrative Agent or
any Lender, any right, remedy, power or privilege hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges herein provided are cumulative and not
exclusive of any rights, remedies, powers and privileges provided by law.

     12.4 Survival of Representations and Warranties.

     All representations and warranties made hereunder and in any document, certificate or
statement delivered pursuant hereto or in connection herewith shall survive the execution and
delivery of this Agreement and the making of the Loans hereunder.

     12.5 Payment of Expenses and Taxes.

     The Borrower agrees (a) to pay or reimburse the Arranger and the Administrative Agent for all
their reasonable and documented out-of-pocket costs and expenses incurred in connection with the
development, preparation and execution of, and any amendment, supplement or modification to, this
Agreement and any other documents prepared in connection herewith or therewith, and the
consummation and administration of the transactions contemplated hereby and thereby (including the
syndication of the Commitments), including the reasonable fees, disbursements and other charges of
one counsel to the Administrative Agent, (b) to pay or reimburse each Lender and the Administrative
Agent for all its reasonable and documented costs and expenses incurred in connection with the
enforcement or preservation of any rights under, or “workout” or restructuring of, this Agreement
and any such other documents, including the

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reasonable fees, disbursements and other charges of counsel to each Lender and of counsel to
the Administrative Agent, (c) to pay, indemnify, defend and hold harmless each Lender and the
Administrative Agent from, any and all recording and filing fees and any and all liabilities with
respect to, or resulting from any delay in paying, stamp, excise and other similar taxes, if any,
that may be payable or determined to be payable in connection with the execution and delivery of,
or consummation or administration of any of the transactions contemplated by, or any amendment,
supplement or modification of, or any waiver or consent under or in respect of, this Agreement and
any such other documents, and (d) to pay, indemnify, defend and hold harmless each Lender, the
Arranger and the Administrative Agent and their respective directors, officers, employees, trustee,
agents and Affiliates (collectively, the “Indemnitees”) from and against any and all other
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever (including reasonable and documented fees,
disbursements and other charges of counsel incurred in connection with any investigative,
administrative or judicial proceeding commenced or threatened by any Person, whether or not any
such Indemnitee shall be designated as a party or potential party thereto, and any fees or expenses
incurred by any Indemnitee in enforcing this indemnity), whether direct, indirect or consequential,
whether based on strict liability or negligence, and whether based on any federal, provincial or
foreign laws, statutes, rules, regulations or guidelines (including Environmental Laws), common
law, equity, contract or otherwise that may be imposed on, incurred by or asserted against any
Indemnitee, in any manner arising out of or relating to (i) this Agreement and any other agreements
or documents contemplated hereby or thereby, the other transactions contemplated hereby (including
the execution, delivery, enforcement, performance and administration of this Agreement and the
breach by the Borrower of, or default by the Borrower under, any of the provisions of this
Agreement, (ii) the violation of, non-compliance with or liability under, any Environmental Law
applicable to the operations of the Borrower or any of its Subsidiaries or applicable to any of the
Real Estate, or (iii) any Environmental Claim or any Hazardous Materials relating to or arising
from, directly or indirectly, any past or present activity, operation, land ownership, possession
or control, or practice of, the Borrower or any of its Subsidiaries from time to time (all the
foregoing in this clause (d), collectively, the “indemnified liabilities”); provided that the
Borrower shall have no obligation hereunder to any Indemnitee with respect to indemnified
liabilities arising from the gross negligence or willful misconduct of such Indemnitee as
determined by a final judgment of a court of competent jurisdiction of which no appeal (or further
appeal) is available and provided further that the Borrower shall have no obligation hereunder to
any Indemnitee with respect to claims to the extent relating to disputes among the Lenders, any of
the Arranger and/or the Administrative Agent. The agreements in this Section 12.5 shall survive
repayment of the Loans and all other amounts payable hereunder.

     Each of the Lenders, the Arranger and the Administrative Agent agree that any and all of their
respective rights under this Agreement and any other agreements contemplated hereby and thereby,
including recourse for any obligation or claim for any indemnification thereunder, is limited to
recourse to the Borrower and its assets as contemplated hereby, and none of the direct or indirect
limited partners, partners, shareholders, members of the Borrower or any of their respective
employees, directors or officers shall have any obligations or liability, or be subject to any
recourse, in respect of any such obligations or claims hereunder or thereunder.

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     12.6 Successors and Assigns; Participations and Assignments.

          (a) Assignments Generally. The provisions of this Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and assigns permitted hereby,
except that (i) the Borrower may not assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender (and any attempted assignment or
transfer by the Borrower without such consent shall be null and void) and (ii) no Lender may assign
or otherwise transfer its rights or obligations hereunder except in accordance with this Section.
Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and assigns permitted hereby,
Participants (to the extent provided in paragraph (c) of this Section) and, to the extent expressly
contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any
legal or equitable right, remedy or claim under or by reason of this Agreement.

          (b) Assignments by Lenders.

          (i) Assignments Generally. Subject to the conditions set forth in paragraph (b)(ii)
below, any Lender may assign to one or more assignees (each, an “Assignee”) all or a portion of its
rights and obligations under this Agreement (including all or a portion of its Commitment and the
Loans at the time owing to it) with the prior written consent (such consent not to be unreasonably
withheld) of:

     (A) the Borrower, provided that no consent of the Borrower shall be required
for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if an Event of
Default under Section 10.1 or 10.5 has occurred and is continuing, any other Assignee; and

     (B) the Administrative Agent.

          (ii) Certain Conditions to Assignments. Assignments shall be subject to the following
additional conditions:

     (A) except in the case of an assignment to a Lender or an Affiliate of a Lender or an
assignment of the entire remaining amount of the assigning Lender’s Commitment or Loans, the
amount of the Commitment or Loans of the assigning Lender subject to each such assignment
(determined as of the date the Assignment and Acceptance with respect to such assignment is
delivered to the Administrative Agent) shall not be less than $5,000,000 unless each of the
Borrower and the Administrative Agent otherwise consent, provided that no such
consent of the Borrower shall be required if an Event of Default has occurred and is
continuing;

     (B) each partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement;

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     (C) the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Acceptance, together with a processing and recordation fee of
$3,500; and

     (D) the Assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire.

          (iii) Effectiveness of Assignments. Subject to acceptance and recording thereof
pursuant to paragraph (b)(iv) of this Section, from and after the effective date specified in each
Assignment and Acceptance the Assignee thereunder shall be a party hereto and, to the extent of the
interest assigned by such Assignment and Acceptance, have the rights and obligations of a Lender
under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Acceptance, be released from its obligations under this Agreement
(and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and
obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Sections 2.10, 2.11 and 12.5). Any assignment or transfer by a
Lender of rights or obligations under this Agreement that does not comply with this Section shall
be treated for purposes of this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with paragraph (c) of this Section.

          (iv) Maintenance of Register. The Administrative Agent, acting for this purpose as an
agent of the Borrower, shall maintain at one of its offices a copy of each Assignment and
Acceptance delivered to it and a register for the recordation of the names and addresses of the
Lenders, and the Commitment of, and principal amount of the Loans owing to, each Lender pursuant to
the terms hereof from time to time (the “Register”). The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent and the Lenders may treat each Person whose
name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all
purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by the Borrower and any Lender, at any reasonable time and from time to
time upon reasonable prior notice.

          (v) Acceptance of Assignments by Administrative Agent. Upon its receipt of a duly
completed Assignment and Acceptance executed by an assigning Lender and an Assignee, the Assignee’s
completed Administrative Questionnaire (unless the Assignee shall already be a Lender hereunder),
the processing and recordation fee referred to in paragraph (b) of this Section and any written
consent to such assignment required by paragraph (b) of this Section, the Administrative Agent
shall accept such Assignment and Acceptance and record the information contained therein in the
Register; provided that if either the assigning Lender or the Assignee shall have failed to
make any payment required to be made by it pursuant to Section 2.4(b), the Administrative Agent
shall have no obligation to accept such Assignment and Acceptance and record the information
therein in the Register unless and until such payment shall have been made in full, together with
all accrued interest thereon. No assignment shall be effective for purposes of this Agreement
unless it has been recorded in the Register as provided in this paragraph.

54

 

          (c) Participations.

          (i) Participations Generally. Any Lender may, without the consent of the Borrower or
the Administrative Agent, sell participations to one or more banks or other entities (a
“Participant”) in all or a portion of such Lender’s rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans owing to it);
provided that (A) such Lender’s obligations under this Agreement shall remain unchanged,
(B) such Lender shall remain solely responsible to the other parties hereto for the performance of
such obligations and (C) the Borrower, the Administrative Agent and the other Lenders shall
continue to deal solely and directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells
such a participation shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision of this Agreement;
provided that such agreement or instrument may provide that such Lender will not, without
the consent of the Participant, agree to any amendment, modification or waiver described in the
second sentence of Section 12.1 that affects such Participant. Subject to paragraph (c)(ii) of
this Section, the Borrower agrees that each Participant shall be entitled to the benefits of
Sections 2.10 and 2.11 to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (b) of this Section. To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 12.8 as though it were a Lender.

          (ii) Limitations on Rights of Participants. A Participant shall not be entitled to
receive any greater payment under Section 2.10 than the applicable Lender would have been entitled
to receive with respect to the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the Borrower’s prior written consent. Any
Participant that is a Non-U.S. Lender shall not be entitled to the benefits of Section 5.3 unless
such Participant complies with Section 5.3(c).

          (d) Certain Pledges. Any Lender may at any time pledge or assign a security interest in all
or any portion of its rights under this Agreement to secure obligations of such Lender, including
without limitation any pledge or assignment to secure obligations to a Federal Reserve Bank, and
this Section shall not apply to any such pledge or assignment of a security interest;
provided that no such pledge or assignment of a security interest shall release a Lender
from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as
a party hereto.

     12.7 Replacements of Lenders under Certain Circumstances.

     The Borrower shall be permitted to replace any Lender that (a) requests reimbursement for
amounts owing pursuant to Section 2.10 or 5.3, (b) is affected in the manner described in Section
2.10(a)(iii) and as a result thereof any of the actions described in such Section is required to be
taken or (c) becomes a Defaulting Lender, with a replacement bank or other financial institution;
provided that (i) such replacement does not conflict with any Requirement of Law, (ii) no Event of
Default shall have occurred and be continuing at the time of such replacement, (iii) the
replacement bank or institution shall purchase, at par, all Loans and other amounts (other than any
disputed amount) pursuant to Section 2.10, 2.11 or 5.3, as the case may be, owing to

55

 

such replaced Lender prior to the date of replacement or as a result of such replacement, (iv)
the replacement bank or institution, if not already a Lender, and the terms and conditions of such
replacement, shall be reasonably satisfactory to the Administrative Agent, (v) the replaced Lender
shall be obligated to make such replacement in accordance with the provisions of Section 12.6
(provided that the Borrower shall be obligated to pay the registration and processing fee referred
to therein) and (vi) any such replacement shall not be deemed to be a waiver of any rights that the
Borrower, the Administrative Agent or any other Lender shall have against the replaced Lender.

     12.8 Set-off, Etc.

     (a) After the occurrence and during the continuance of an Event of Default, in addition to any
rights and remedies of the Lenders provided by law, each Lender shall have the right, without prior
notice to the Borrower, any such notice being expressly waived by the Borrower to the extent
permitted by applicable law, upon any amount becoming due and payable by the Borrower hereunder
(whether at the stated maturity, by acceleration or otherwise) to set-off and appropriate and apply
against such amount any and all deposits (general or special, time or demand, provisional or
final), in any currency, and any other credits, indebtedness or claims, in any currency, in each
case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Lender or any branch or agency thereof to or for the credit or the account of the
Borrower. Each Lender agrees promptly to notify the Borrower and the Administrative Agent after
any such set-off and application made by such Lender, provided that the failure to give such notice
shall not affect the validity of such set-off and application.

     (b) If any Finance Party shall obtain any payment or other recovery (whether voluntary,
involuntary, by application of setoff or otherwise) on account of any Loan (other than pursuant to
the terms of Section 2.10, 2.11 or 5.3) in excess of its pro rata share of payments obtained by all
Finance Parties, such Finance Party shall purchase from the other Finance Parties such
participations in Loans made by them as shall be necessary to cause such purchasing Finance Party
to share the excess payment or other recovery ratably (to the extent such other Finance Parties
were entitled to receive a portion of such payment or recovery) with each of them; provided that if
all or any portion of the excess payment or other recovery is thereafter recovered from such
purchasing Finance Party, the purchase shall be rescinded and each Finance Party which has sold a
participation to the purchasing Finance Party shall repay to the purchasing Finance Party the
purchase price to the ratable extent of such recovery together with an amount equal to such selling
Finance Party’s ratable share (according to the proportion of (a) the amount of such selling
Finance Party’s required repayment to the purchasing Finance Party to (b) total amount so recovered
from the purchasing Finance Party) of any interest or other amount paid or payable by the
purchasing Finance Party in respect of the total amount so recovered. The Borrower agrees that any
Finance Party purchasing a participation from another Finance Party pursuant to this Section may,
to the fullest extent permitted by law, exercise all its rights of payment (including pursuant to
clause (a) above) with respect to such participation as fully as if such Finance Party were the
direct creditor of the Borrower in the amount of such participation. If under any applicable
bankruptcy, insolvency or other similar law any Finance Party receives a secured claim in lieu of a
setoff to which this Section applies, such Finance Party shall, to the extent practicable, exercise
its rights in respect of such secured claim in a manner consistent with

56

 

the rights of the Lenders entitled under this Section to share in the benefits of any recovery
on such secured claim.

     12.9 Marshalling; Payments Set Aside.

     Neither the Administrative Agent nor any Lender shall be under any obligation to marshal any
assets in favor of the Borrower or any other party or against or in payment of any or all of the
Borrower’s obligations hereunder. To the extent that the Borrower makes a payment or payments to
the Administrative Agent or Lenders (or to the Administrative Agent for the benefit of Lenders), or
the Administrative Agent or Lenders enforce any security interests or exercise their rights of
setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or
required to be repaid to a trustee, receiver or any other party under any bankruptcy law, any other
provincial, state or federal law, common law or any equitable cause, then, to the extent of such
recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, rights
and remedies therefor or related thereto, shall be revived and continued in full force and effect
as if such payment or payments had not been made or such enforcement or setoff had not occurred.

     12.10 Counterparts.

     This Agreement may be executed by one or more of the parties to this Agreement on any number
of separate counterparts (including by facsimile transmission), and all of said counterparts taken
together shall be deemed to constitute one and the same instrument. A set of the copies of this
Agreement signed by all the parties shall be lodged with the Borrower and the Administrative Agent.

     12.11 Severability.

     Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction.

     12.12 Integration.

     This Agreement represent the agreement of the Borrower, the Administrative Agent and the
Lenders with respect to the subject matter hereof, and there are no promises, undertakings,
representations or warranties by the Administrative Agent or any Lender relative to subject matter
hereof not expressly set forth or referred to herein.

     12.13 Governing Law.

     THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY,
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK AND THE LAWS OF
THE UNITED STATES APPLICABLE THEREIN

57

 

(EXCLUDING ANY CONFLICT OF LAWS RULE OR PRINCIPLE WHICH MIGHT REFER SUCH CONSTRUCTION TO THE
LAWS OF ANOTHER JURISDICTION).

     12.14 Submission to Jurisdiction; Waivers.

     The Borrower hereby irrevocably and unconditionally:

     (a) submits for itself and its property in any legal action or proceeding relating to
this Agreement, or for recognition and enforcement of any judgment in respect thereof, to
the non-exclusive general jurisdiction of the courts of the State of New York;

     (b) consents that any such action or proceeding may be brought in such courts and
waives any objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in an
inconvenient court and agrees not to plead or claim the same;

     (c) agrees that service of process in any such action or proceeding may be effected in
accordance with the local rules of civil procedure or by mailing a copy thereof by
registered or certified mail (or any substantially similar form of mail), postage prepaid,
to the Borrower at its address set forth in Section 12.2 or at such other address of which
the Administrative Agent shall have been notified pursuant thereto;

     (d) agrees that nothing herein shall affect the right to effect service of process in
any other manner permitted by law or shall limit the right to sue in any other jurisdiction;
and

     (e) waives, to the maximum extent not prohibited by law, any right it may have to claim
or recover in any legal action or proceeding referred to in this Section 12.14 any special,
exemplary, punitive or consequential damages.

     12.15 Acknowledgements.

     The Borrower hereby acknowledges that:

     (a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement;

     (b) neither the Administrative Agent nor any Lender (in any capacity) has any fiduciary
relationship with or duty to the Borrower arising out of or in connection with this
Agreement, and the relationship between Administrative Agent and Lenders, on one hand, and
the Borrower, on the other hand, in connection herewith or therewith is solely that of
debtor and creditor; and

     (c) no joint venture is created hereby or otherwise exists by virtue of the
transactions contemplated hereby among the Lenders or among the Borrower and the Lenders.

58

 

     12.16 Waivers of Jury Trial.

     THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND FOR ANY
COUNTERCLAIM THEREIN.

     12.17 Confidentiality.

     The Administrative Agent and each Lender shall hold all non-public information furnished by or
on behalf of the Borrower in connection with such Lender’s evaluation of whether to become a Lender
hereunder or obtained by such Lender or the Administrative Agent pursuant to the requirements of
this Agreement (“Confidential Information”), in accordance with its customary procedure for
handling confidential information of this nature and (in the case of a Lender that is a bank) in
accordance with safe and sound banking practices and in any event may make disclosure as required
or requested by any Governmental Authority, representatives thereof or any nationally recognized
rating agency that requires access to information about such Lender’s investment portfolio in
connection with ratings issued with respect to such Lender or pursuant to legal process or to such
Lender’s or the Administrative Agent’s lawyers, professional advisors or independent auditors or
Affiliates; provided that, unless specifically prohibited by applicable law or court order, each
Lender and the Administrative Agent shall notify the Borrower of any request by any governmental
agency or representative thereof (other than any such request in connection with an examination of
the financial condition or regulatory compliance of such Lender by such Governmental Authority or
in connection with ratings by such rating agency with respect to such Lender) for disclosure of any
such non-public information prior to disclosure of such information, and provided further that in
no event shall any Lender or the Administrative Agent be obligated or required to return any
materials furnished by the Borrower or any Subsidiary of the Borrower. Each Lender and the
Administrative Agent agrees that it will not provide to prospective Assignees or Participants or to
prospective direct or indirect contractual counterparties in swap agreements to be entered into in
connection with Loans made hereunder any of the Confidential Information unless such Person shall
have previously executed a Confidentiality Agreement substantially in the form prescribed from time
to time by the Loan Sales and Trading Association.

     12.18 Treatment of Loans.

     (a) The Borrower does not intend to treat the Loans and related transactions as being a
“reportable transaction” (within the meaning of Treasury Regulation Section 1.6011-4). In the
event the Borrower determines to take any action inconsistent with such intention, it will promptly
notify the Administrative Agent thereof.

     (b) The Borrower acknowledges that the Administrative Agent and one or more of the Lenders
may treat its Loans as part of a transaction that is subject to Treasury Regulation Section
1.6011-4 or Section 301.6112-1, and the Administrative Agent and such Lender or Lenders, as
applicable, may file such IRS forms or maintain such lists and other records as they may determine
is required by such Treasury Regulations.

59

 

     IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Agreement to
be duly executed and delivered as of the date first above written.

	 	 	 	 	 
	 	ITC HOLDINGS CORP.,

as the Borrower

 	 
	 	By:  	/s/ Edward M. Rahill
 	 
	 	 	Name:  	Edward M. Rahill 	 
	 	 	Title:  	Senior Vice President and Chief 	 
	 
	 	LEHMAN COMMERCIAL PAPER INC.

as Administrative Agent

 	 
	 	By:  	/s/ Adrian De Lagarde
 	 
	 	 	Name:  	Adrian De Lagarde 	 
	 	 	Title:  	Authorized Signatory 	 

60

 

	 	 	 	 	 

	 	 	 	 	 
	 	LEHMAN BROTHERS BANK, FSB,

as Lender

 	 
	 	By:  	/s/ Janine M. Shugan
 	 
	 	 	Name:  	Janine M. Shugan 	 
	 	 	Title:  	Authorized Signatory 	 

61

 

	 	 	 	 	 

	 	 	 	 	 
	 	COMERICA BANK,

as Lender

 	 
	 	By:  	/s/ Blake Arnett
 	 
	 	 	Name:  	Blake Arnett 	 
	 	 	Title:  	Assistant Vice President 	 

62

 

	 	 	 	 	 

	 	 	 	 	 
	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH,

as Lender

 	 
	 	By:  	/s/ Thomas Cantello
 	 
	 	 	Name:  	Thomas Cantello 	 
	 	 	Title:  	Director 	 
	 
	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH,

as Lender

 	 
	 	By:  	/s/ Shaheen Malik
 	 
	 	 	Name:  	Shaheen Malik 	 
	 	 	Title:  	Associate 	 
	 

[Signature page to ITC Holdings Credit Agreement]

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

as Lender

 	 
	 	By:  	/s/ Patrick N. Martin
 	 
	 	 	Name:  	Patrick N. Martin 	 
	 	 	Title:  	Vice President 	 
	 

[Signature page to ITC Holdings Credit Agreement]

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,

as Lender

 	 
	 	By:  	/s/ Nancy R. Barwig
 	 
	 	 	Name:  	Nancy R. Barwig 	 
	 	 	Title:  	Vice President 	 
	 

[Signature page to ITC Holdings Credit Agreement]

 

 

	 	 	 	 	 
	 	MORGAN STANLEY BANK,

as Lender

 	 
	 	By:  	/s/ Daniel Twenge
 	 
	 	 	Name:  	Daniel Twenge 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[Signature page to ITC Holdings Credit Agreement]

 

 

SCHEDULE I

COMMITMENTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	REVOLVING CREDIT
	 	 	 	 	REVOLVING CREDIT	 	COMMITMENT
	LENDER	 	ADDRESS FOR NOTICES	 	COMMITMENT	 	PERCENTAGE
	 	 	 
	 	 	 	 	 	 	 	 
	Lehman Brothers Bank, FSB
	 	Lehman Brothers

Deal Closing & Servicing Department

745 7th Avenue, 16th Floor,

New York NY 10019

Attention: Janine Shugan 

Facsimile No.: (212) 526 8625

	 	$	350,000,000	 	 	 	45.75	%
	 	 	 
	 	 	 	 	 	 	 	 
	Comerica Bank
	 	Comerica

500 Woodward Avenue, 9th Floor,

Detroit MI 48226

Attention: Stacey McVeigh

Facsimile No.: (313) 222-9514

	 	$	15,000,000	 	 	 	1.96	%
	 	 	 
	 	 	 	 	 	 	 	 
	Credit Suisse, Cayman Islands Branch
	 	Credit Suisse, Cayman Islands Branch

Eleven Madison Avenue

New York NY 10010

Attention: Loan Closers

Facsimile No.: (212) 538-9120

	 	$	275,000,000	 	 	 	35.95	%

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	REVOLVING CREDIT
	 	 	 	 	REVOLVING CREDIT	 	COMMITMENT
	LENDER	 	ADDRESS FOR NOTICES	 	COMMITMENT	 	PERCENTAGE
	 	 	 
	 	 	 	 	 	 	 	 
	Bank of America, N.A.
	 	Bank of America, N.A.

901 Main Street

Dallas TX 75202-3714

Attention: Jacqueline Archuleta

Facsimile No.: (214) 290 8372

	 	$	25,000,000	 	 	 	3.27	%
	 	 	 
	 	 	 	 	 	 	 	 
	JPMorgan Chase Bank, N.A.
	 	JPMorgan Chase Bank, N.A.

Loan Operations

10 South Dearborn, 7th Floor

Mail Code IL1-0010

Chicago, IL 60603

Attention: Nanette Wilson

Facsimile No.: (312) 385-7096

with copy to (except in the case of notices
relating to borrowings, continuation,
conversions and letters of credit):

JPMorgan Chase Bank, N.A.

10 South Dearborn, 9th Floor

Mail Code IL1-0090

Chicago, IL 60603

Attention: Nancy R. Barwig

Vice President, Mid- Corporate Power Credit 

Facsimile No.: (312) 732-1762
	 	$	75,000,000	 	 	 	9.80	%

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	REVOLVING CREDIT
	 	 	 	 	REVOLVING CREDIT	 	COMMITMENT
	LENDER	 	ADDRESS FOR NOTICES	 	COMMITMENT	 	PERCENTAGE
	 	 	 
	 	 	 	 	 	 	 	 
	Morgan Stanley Bank
	 	Morgan Stanley Bank

2500 Lake Blvd, Suite 300 C

West Valley City, Utah 84120

On or prior to the Closing Date:

Attention: Nomi Clarke

Facsimile No.: (718) 233-2132

After the Closing Date:

Attention: Martin Telford, Ly Dinh and
 Kathy Wu
Facsimile No.: (718) 233-2140

	 	$	25,000,000	 	 	 	3.27	%
	 	 	 
	 	 	 	 	 	 	 	 
	 	 	Total amount

	 	$	765,000,000	 	 	 	100	%

 

 

SCHEDULE II

ENVIRONMENTAL MATTERS

[NONE]

 

 

SCHEDULE III

PENSION AND WELFARE MATTERS

[NONE]

 

 

SCHEDULE IV

OUTSTANDING LIENS ON CLOSING DATE

[NONE]

 

 

EXHIBIT A

Form of Notice of Borrowing

NOTICE OF BORROWING

	 	 	 
	TO:

	 	Lehman Commercial Paper Inc.
	 

	 	as Administrative Agent under the
	 

	 	Credit Agreement (as defined below)
	 

	 	745 Seventh Avenue
	 

	 	New York, New York 10019
	 

	 	Attention: Maritza Ospina
	 

	 	Facsimile No.: (646) 758-4648

     Pursuant to the Bridge Loan Agreement, dated as of September 26, 2007 (as the same may be
amended, modified, supplemented, restated or replaced from time to time, the “Credit Agreement”;
the terms defined therein and not otherwise defined herein being used herein as therein defined),
among ITC Holdings Corp., a Michigan corporation (the “Borrower”), the Lenders, and Lehman
Commercial Paper Inc., as the Administrative Agent, this represents the Borrower’s request to
borrow as follows:

          Loan:

	 	1.	 	Date of borrowing:
	 
	 	2.	 	Amount of borrowing:
	 
	 	3.	 	Lender(s): Lenders, in accordance with their Commitments under
the Credit Agreement
	 
	 	4.	 	Interest rate option:

     Please wire transfer the proceeds of the Borrowing in accordance with the funds flow
memorandum delivered under separate cover.

     The undersigned officer, to the best of his or her knowledge, in his or her capacity as an
officer of the Borrower certifies that:

 

2

     All representations and warranties made by the Borrower contained in the Credit
Agreement are true and correct in all material respects with the same effect as though such
representations and warranties had been made on and as of the date hereof (except where such
representations and warranties expressly relate to an earlier date, in which case such representations and warranties are true and correct in all material respects
as of such earlier date); and

     No event has occurred and is continuing or would result from the consummation of the
Borrowing contemplated hereby that would constitute a Default or an Event of Default.

Dated:

	 	 	 	 	 
	 	ITC HOLDINGS CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

EXHIBIT B

Form of Notice of Continuation

	 	 	 
	TO:

	 	Lehman Commercial Paper Inc.,
	 

	 	as Administrative Agent under the
	 

	 	Credit Agreement (as defined below)
	 

	 	745 Seventh Avenue
	 

	 	New York, New York 10019
	 

	 	Attention: Maritza Ospina
	 

	 	Facsimile No.: (646) 758-4648

          Pursuant to the Credit Agreement, dated as of September 26, 2007 (as the same may be amended,
modified, supplemented, restated or replaced from time to time, the “Credit Agreement”; the terms
defined therein and not otherwise defined herein being used herein as therein defined), among ITC
Holdings Corp., a Michigan corporation (the “Borrower”), the various financial institutions and
other persons from time to time referred to as “Lenders” in the Credit Agreement (the “Lenders”),
and Lehman Commercial Paper Inc., as the Administrative Agent, this represents the Borrower’s
request to continue Loans as follows:

	 	1.	 	Date of continuation or conversion:
	 
	 	 	 	                                        , ___
	 
	 	2.	 	Amount of Loans being continued or converted:
	 
	 	 	 	$                                        
	 
	 	3.	 	Nature of continuation or conversion:

	 	____	 	a. Conversion of a LIBOR Loan as an ABR Loan
	 
	 	____	 	b. Conversion of an ABR Loan as a LIBOR Loan
	 
	 	____	 	c. Continuation (rollover) of LIBOR Loans as LIBOR Loans

	 	4.	 	If Loans are being continued as or converted into LIBOR Loans, the duration of
the new LIBOR Period that commences on the continuation or conversion date:

	 	____	 	month(s)

          The undersigned officer, to the best of his or her knowledge, in his or her capacity as an
officer of the Borrower, certifies that:

 

4

     (i) All representations and warranties made by the Borrower contained in the Credit
Agreement are true and correct in all material respects with the same effect as though such
representations and warranties had been made on and as of the date hereof (except where such
representations and warranties expressly relate to an earlier date, in which case such
representations and warranties are true and correct in all material respects as of such
earlier date) provided that, the representation made in Section 7.14 shall be made
only on the Closing Date; and

     (ii) No event has occurred and is continuing or would result from the consummation of
the Borrowing contemplated hereby that would constitute a Default or an Event of Default.

Dated:                                         

	 	 	 	 	 
	 	ITC HOLDINGS CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

5

	 	 	 	 	 

EXHIBIT C

Form of Closing Certificate

CLOSING CERTIFICATE

ITC HOLDINGS CORP.

               I, the undersigned, an Authorized Officer of ITC Holdings Corp. (the “Borrower”),
hereby certify to the best of my knowledge, information and belief, for and on behalf of the
Borrower, and not in my personal capacity, that:

	 	(a)	 	This certificate is furnished pursuant to the Bridge Loan Agreement (as the
same may be amended, modified, supplemented, restated or replaced from time to time,
the “Credit Agreement”), dated as of September 26, 2007, among the Borrower, a
Michigan corporation, the Lenders thereto and Lehman Commercial Paper Inc., as
administrative agent. Unless otherwise defined herein, capitalized terms used in this
certificate shall have the meanings set forth in the Credit Agreement.
	 
	 	(b)	 	Attached hereto as Exhibit A is a true and complete copy of the
Certificate of Incorporation of the Borrower as filed in the Office of the Secretary of
State of the State of Michigan, together with all amendments thereto adopted through
the date hereof and as in effect on the date hereof.
	 
	 	(c)	 	Attached hereto as Exhibit B is a true and complete copy of the Bylaws
of the Borrower, together with all amendments thereto adopted through the date hereof
and as in effect on the date hereof.
	 
	 	(d)	 	Attached hereto as Exhibit C is a true and complete copy of the
resolutions duly adopted by the Board of Directors of the Borrower at a meeting of such
Board of Directors held on [     ], approving and authorizing the execution, delivery and
performance of the Credit Agreement and the transactions contemplated thereby. Such
resolutions have not been amended, modified, revoked or rescinded since the date of
adoption thereof, are in full force and effect on the date hereof and are the only
resolutions that have been adopted by the Board of Directors of the Borrower with
respect to the subject matter thereof.
	 
	 	(e)	 	The persons whose names appear on Exhibit D attached hereto are duly
elected, qualified and acting officers of the Borrower occupying the offices set forth
opposite their respective names on Exhibit D, and the signature set forth
opposite their respective names are their true and genuine signatures, and each of such
officers is duly authorized to execute and deliver the Credit Agreement on behalf of
the Borrower and each of the related documents to which it is a party and any other
agreement, instrument or document to be delivered by the Borrower pursuant to the
Credit Agreement.

 

6

	 	(f)	 	The representations and warranties of the Borrower set forth in the Credit Agreement are
true and correct in all material respects.
	 
	 	(g)	 	No Default or Event of Default has occurred and is continuing.

* * * * *

 

7

     IN WITNESS WHEREOF, I have hereunto set my hand on behalf of the Borrower this [__]th day of
[_____], 2007.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

     I, the undersigned, [_____] of the Borrower, do hereby certify solely on behalf of the Borrower
and not in my individual capacity that [_____] is the duly elected and qualified Secretary of the
Borrower and the signature above is his genuine signature.

     IN WITNESS WHEREOF, I have hereunto set my hand on behalf of the Borrower this [__]th day of
[_____], 2007.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Name:  	 	 
	 	Title:  	 	 

 

 

EXHIBIT D

Form of Compliance Certificate

TO: The Lenders and the Administrative Agent

The undersigned, an Authorized Officer of ITC Holdings Corp. (the “Borrower”), in such capacity and
not personally, hereby certifies to the best of my knowledge, information and belief that:

	1.	 	I am the duly appointed                                                              of the Borrower named in the Bridge Loan
Agreement, dated as of September 26, 2007 (as the same may be amended, modified, supplemented,
restated or replaced from time to time, the “Credit Agreement”), among ITC Holdings Corp., a
Michigan corporation (the “Borrower”), the Lenders and Lehman Commercial Paper Inc., as the
Administrative Agent and as such I am providing this certificate for and on behalf of the
Borrower pursuant to Section 8.1(c) of the Credit Agreement. Unless the context otherwise
requires, capitalized terms in the Credit Agreement which appear herein without definitions
shall have the meanings ascribed thereto in the Credit Agreement.
	 
	2.	 	I am familiar with and have examined the provisions of the Credit Agreement including those
of Articles 7, 8, 9 and 10 therein and have reviewed and am familiar with the contents of this
certificate.
	 
	3.	 	Delivered herewith are the financial statements required to be delivered pursuant to Section
8.1(a) and (b) of the Credit Agreement.
	 
	4.	 	No Default or Event of Default has occurred and is continuing as of the date hereof [or if
any Default or Event of Default does exist, specify the nature and extent thereof].
	 
	5.	 	As of the last day of the fiscal [year/quarter] ending ___, the financial ratio
referred to in Section 9.4(a) of the Credit Agreement is ___:___and was calculated as set
forth in Part A of Schedule I.
	 
	6.	 	As of the last day of the fiscal [year/quarter] ending ___, the financial ratio
referred to in Section 9.4(b) of the Credit Agreement is ___:___and was calculated as set
forth in Part B of Schedule I.

Dated this day of                     ,                     .

	 	 	 	 	 
	 	 	 
	
 	 	 
	[Name and Title] 	 	 
	 	 	 

 

 

	 	 	 	 	 

Schedule I

Part A

Total Debt to Capitalization Ratio

	 	 	 	 	 
	1. Total Debt for the last day of the relevant fiscal [year/quarter]
	 	$	                    	 
	2. Total Capitalization for such day
	 	 	 	 
	(a) Total Debt
	 	$	                    	 
	(b) Total stockholder’s equity of the Borrower
	 	$	                    	 
	(c) Total Capitalization: The sum of Items 2(a) and 2(b)
	 	$	                    	 
	3. TOTAL DEBT TO CAPITALIZATION RATIO: the ratio of Item 1 to Item 2
	 	 	                    	%
	4. Maximum Total Debt to Capitalization Ratio allowed
	 	 	85	%
	5. In compliance
	 	Yes  /  No

Part B

Newco Debt to Capitalization Ratio

	 	 	 	 	 
	1. Newco Total Debt for the last day of the relevant fiscal
[year/quarter]
	 	$	                    	 
	2. Newco Total Capitalization for such day
	 	 	 	 
	(a) Newco Total Debt
	 	$	                    	 
	(b) Total stockholder’s equity of Newco
	 	$	                    	 
	(c) Newco Total Capitalization: The sum of Items 2(a) and
2(b)
	 	$	                    	 
	3. NEWCO DEBT TO CAPITALIZATION RATIO: the ratio of Item 1
to Item 2
	 	 	                    	%
	4. Maximum Newco Debt to Capitalization Ratio allowed
	 	 	60	%
	5. In compliance
	 	Yes  /  Noexv10w61

 

Exhibit
10.61

Exhibit 1.1 -D

FORM OF DISTRIBUTION-TRANSMISSION

INTERCONNECTION AGREEMENT

by
and between

ITC
Midwest LLC

as
Transmission Owner

and

Interstate
Power and Light Company

as
Local Distribution Company

Dated as of December 17, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	Article 1. Definitions
	 	 	1	 
	Article 2. Operational Requirements
	 	 	7	 
	Article 3. Operation and Maintenance
	 	 	10	 
	Article 4. Supervisory Control and Data Acquisition, SCADA
	 	 	15	 
	Article 5. Revenue Metering
	 	 	16	 
	Article 6. Protective Relaying and Control 
	 	 	19	 
	Article 7. Planning and Obligation to Serve
	 	 	21	 
	Article 8. New Construction and Modification
	 	 	23	 
	Article 9. Access to Facilities
	 	 	24	 
	Article 10. Notifications and Reporting
	 	 	25	 
	Article 11. Safety
	 	 	26	 
	Article 12. Environmental Compliance and Procedures
	 	 	27	 
	Article 13. Billings and Payment
	 	 	28	 
	Article 14. Applicable Regulations and Interpretation
	 	 	29	 
	Article 15. Force Majeure
	 	 	29	 
	Article 16. Limitation of Liability
	 	 	30	 
	Article 17. Indemnification
	 	 	30	 
	Article 18. Insurance
	 	 	31	 
	Article 19. Several Obligations
	 	 	32	 
	Article 20. Confidentiality
	 	 	32	 
	Article 21. Breach, Default and Remedies
	 	 	34	 
	Article 22. Term
	 	 	36	 
	Article 23. Amendment
	 	 	37	 
	Article 24. Assignment/Change in Corporate Identity
	 	 	37	 
	Article 25. Subcontractors
	 	 	38	 
	Article 26. Dispute Resolution
	 	 	38	 
	Article 27. Miscellaneous Provisions
	 	 	39	 

i

 

EXHIBITS

	 	 	 
	Exhibit 1

	 	Identification of the Interconnection Points and Equipment
	 
	 	 
	Exhibit 2

	 	Contact Information for Local Distribution Company’s Site Representatives and Transmission Owner’s Site Representatives
	 
	 	 
	Exhibit 3

	 	Transmission Owner Switching Procedures
	 
	 	 
	Exhibit 4

	 	Local Distribution Company Switching Procedures
	 
	 	 
	Exhibit 5

	 	[Reserved]
	 
	 	 
	Exhibit 6

	 	[Reserved]
	 
	 	 
	Exhibit 7

	 	Form of Easement
	 
	 	 
	Exhibit 8

	 	Metering Specifications
	 
	 	 
	Exhibit 9

	 	Dispute Resolution Procedures
	 
	 	 
	Exhibit 10

	 	[Reserved]

ii

 

FORM OF DISTRIBUTION-TRANSMISSION INTERCONNECTION AGREEMENT

     This Distribution-Transmission Interconnection Agreement (“Agreement”) is entered into
as of the 17th day of December, 2007 by and between the Interstate Power and Light Company (IPL),
an Iowa corporation (“Local Distribution Company”), having a place of business at 200 First
Street SE, Cedar Rapids, IA, 52401 and ITC Midwest LLC, a Michigan limited liability company
(“Transmission Owner”). Transmission Owner and Local Distribution Company are individually
referred to herein as a “Party” and collectively as “Parties.”

     WHEREAS, pursuant to the Asset Sale Agreement between Transmission Owner and Local
Distribution Company, dated as of December 18, 2007 (the “Asset Sale Agreement”),
Transmission Owner has purchased from Local Distribution Company all elements of the Transmission
System that are presently interconnected with the Distribution System;

     WHEREAS, Local Distribution Company will own and/or operate existing and/or new Distribution
System facilities from present and/or new locations; and

     WHEREAS the existing Distribution System facilities currently are connected to the
Transmission System and Local Distribution Company will continue to connect the existing
Interconnection Equipment to the Transmission System on the terms set forth herein; and

     WHEREAS, Transmission Owner requires access to parts of Local Distribution Company’s assets,
and Local Distribution Company requires access to parts of Transmission Owner’s assets; and

     WHEREAS, Transmission Owner is willing to continue to own and/or operate the Transmission
System in accordance with Good Utility Practice; and

     WHEREAS, the Parties have agreed to execute this mutually acceptable Interconnection Agreement
in order to provide interconnection of the Local Distribution Company with the Transmission Owner
and to define the continuing rights, responsibilities, and obligations of the Parties with respect
to the use of certain of their own and the other Party’s property, assets, and facilities;

     NOW, THEREFORE, in consideration of their respective commitments set forth herein, and
intending to be legally bound hereby, the Parties covenant and agree as follows:

Article 1. Definitions

     Wherever used in this Agreement with initial capitalization, the following terms shall
have the meanings specified or referred to in this Article 1.

	1.1	 	Agreement means this Distribution-Transmission Interconnection Agreement between
Local Distribution Company and Transmission Owner, including all attachments hereto,
as the same may be amended, supplemented, or modified in accordance with its terms.

	1.2	 	Asset Sale Agreement shall have the meaning specified in the recitals.

1

 

	1.3	 	Black Start Capability shall mean a generating unit that is capable of starting
without an
outside electrical supply.
	 
	1.4	 	Common Facilities shall mean substation assets at jointly occupied sites that benefit
both Local Distribution Company and Transmission Owner, but that are owned by either
Local Distribution Company or Transmission Owner individually (the
“Owning Utility”).
Common Facilities include, but are not limited to, perimeter fencing and other barriers,
control house(s) and other structures and associated foundations, grading and surfacing,
fire protection equipment, Station Power facilities, battery banks, lighting, lightning
masts, and grounding to the extent located on the substation properties identified in
Exhibit 1.

	1.5	 	Confidential Information shall have the meaning set forth in Section 20.1 hereof.
	 
	1.6	 	Balancing Authority/Control Area means an entity that maintains Resource to Load (as
those capitalized terms are defined in the OATT) interchange balance within a Balancing
Authority/Control Area and supports interconnection and frequency in real-time.

	1.7	 	Balancing Authority/Control Area Operator shall mean the entity that has the ability
and
the obligation to operate the Balancing Authority/Control Area to ensure that the
aggregate electrical demand and energy requirements of the load are met at all times,
taking into account scheduled and reasonably expected unscheduled outages of system
elements.
	 
	1.8	 	Dispute shall have the meaning set forth under Section 26.1 hereof.
	 
	1.9	 	Distribution System shall mean the equipment and facilities and the Interconnection
Equipment owned by Local Distribution Company and used to deliver power and energy
to end users, including transformers, switches, and feeders with an operating voltage of
less than 34 kV or such other facilities as may be designated by the applicable regulatory
agency. Such facilities are identified in Exhibit 1.
	 
	1.10	 	Distribution Transformer shall mean an electrical transformer that has its secondary low
side windings rated at Nominal Voltage of 34 kV or less or such other facilities as may be
designated by the applicable regulatory agency. Such facilities are identified in Exhibit 1.
	 
	1.11	 	Due Diligence shall mean the exercise of good faith efforts to perform a required act
on a timely basis and in accordance with Good Utility Practice using the necessary technical
and personnel resources.
	 
	1.12	 	Easements shall have the meaning set forth under Section 9.2 hereof.
	 
	1.13	 	Effective Date shall be the Closing Date, as defined in the Asset Sale Agreement.
	 
	1.14	 	Eligible Customer shall have the meaning specified in the OATT on file with the FERC.

2

 

	1.15	 	Emergency means a condition or situation that, in the reasonable good faith
determination of the affected Party based on Good Utility Practice, causes or is
reasonably likely to cause an imminent physical threat of danger to life or a significant
threat to health, property or the environment.
	 
	1.16	 	ERO means the Electric Reliability Organization certified by FERC, or its successor.
	 
	1.17	 	FERC shall mean the Federal Energy Regulatory Commission or its successor federal
agency.
	 
	1.18	 	FERC Standards of Conduct shall mean the standards of conduct set forth in 18 CFR
§358 or its successor regulations.
	 
	1.19	 	Force Majeure shall have the meaning set forth under Article 15 hereof.
	 
	1.20	 	Forced Outage shall mean in the case of the Distribution System, taking the
Distribution
System, in whole or in part, out of service by reason of an Emergency or Network
Security Condition, unanticipated failure or other cause beyond the reasonable control of
Local Distribution Company, when such removal from service was not scheduled in
accordance with Section 3.7.2, and, in the case of the Transmission System, taking the
Transmission System, in whole or in part, out of service by reason of an Emergency or
Network Security Condition, unanticipated failure, or other cause beyond the reasonable
control of Transmission Owner when such removal from service was not scheduled in
accordance with Section 3.7.2.
	 
	1.21	 	Good Utility Practice shall mean the practices, methods and acts engaged in or
approved by a significant portion of the electric utility industry during the relevant time period,
including compliance with applicable ERO and RRO reliability standards, or any of the
practices, methods and acts that, in the exercise of reasonable judgment in light of the
facts known at the time the decision was made, could have been expected to accomplish
the desired result at a reasonable cost consistent with good business practices, reliability,
safety and expedition. Good Utility Practice is not intended to be limited to the optimum
practice, method, or act to the exclusion of all others, but rather includes all acceptable
practices, methods, or acts generally accepted in the region.
	 
	1.22	 	Governmental Authority shall mean any foreign, federal, state, local or other
governmental regulatory or administrative agency, court, commission, department, board,
or other governmental subdivision, legislature, rulemaking board, tribunal, arbitrating
body, or other governmental authority; provided such entity possesses valid jurisdictional
authority to regulate the Parties and the terms and conditions of this Agreement.
	 
	1.23	 	Interconnection Equipment shall mean all the equipment that is necessary for the
interconnection of the Distribution System with the Transmission System as set forth in
Exhibit 1 hereto as it may be revised from time to time.
	 
	1.24	 	Interconnection Point(s) shall mean the point(s) at which the Distribution System is
connected with the Transmission System, as set forth in Exhibit 1 hereto as it may be
revised from time to time.

3

 

	1.25	 	Interconnection Service shall mean the services provided by Transmission Owner for
the interconnection of the Distribution System with the Transmission System.
Interconnection Service does not include the right to transmission service on the
Transmission System, which service shall be obtained in accordance with the provisions
of the OATT.
	 
	1.26	 	Interconnection Standards shall be those standards provided by Transmission Owner to
Local Distribution Company or by mutual agreement of the Parties to establish and
maintain interconnected operation in compliance with the applicable standards of ERO,
and RRO, and applicable state or federal regulations.
	 
	1.27	 	Interest Rate shall mean the interest rate calculated in accordance with the methodology specified for interest on refunds in the FERC regulations at 18 C.F.R. § 35.19a(a)(2)(iii).
	 
	1.28	 	Jointly Used Assets shall have the meaning specified in Section 3.10.4.
	 
	1.29	 	Knowledge shall mean actual knowledge of the corporate officers or managers of the specified Person charged with responsibility for the particular function as of the Effective
Date of this Agreement, or, with respect to any certificate delivered pursuant to this Agreement, the date of delivery of the certificate.
	 
	1.30	 	Local Distribution Company shall mean Interstate Power and Light Company and its
successors and assigns.
	 
	1.31	 	Local Distribution Company’s Site Representative shall be that person or persons identified in Exhibit 2 as the point of contact for day-to-day operations of the Distribution
System.
	 
	1.32	 	Material Adverse Change shall have the meaning specified in Section 22.3(a).
	 
	1.33	 	MISO shall mean the Midwest Independent Transmission System Operator, Inc., or any
successor organization.
	 
	1.34	 	Multiple Use Transmission Structures shall have the meaning specified in Section 3.12.
	 
	1.35	 	Network Security shall mean the ability of the Transmission System to withstand sudden
disturbances such as unforeseen conditions, electric short circuits or unanticipated loss of
system elements consistent with reliability principles used to design, plan, operate, and
assess the actual or projected reliability of an electric system that are (i) established by
any Governmental Authority, ERO, or RRO and (ii) implemented by Transmission
Owner or required of Transmission Owner to be in compliance with Reliability
Coordinator directives.
	 
	1.36	 	Network Security Condition shall mean a condition or situation in which, in the reasonable good faith
determination of Transmission Owner, Network Security is not satisfied or is threatened.

4

 

	1.37	 	Nominal Voltage shall mean an accepted standard voltage level offered by
Transmission Owner, at various points on the Transmission System, including but not limited to 34.5
kV, 69 kV, 115 kV, 138 kV, 161 kV, 230 kV, and 345 kV.
	 
	1.38	 	Normal System Condition shall mean any operating conditions of the Transmission
System other than an Emergency or Network Security Condition.
	 
	1.39	 	Open Access Transmission Tariff or OATT shall mean the Open Access Transmission Tariff on file with FERC under which transmission service is provided using the
Transmission System. Presently the effective OATT is the MISO Transmission and Energy Markets Tariff.
	 
	1.40	 	Owning Utility shall have the meaning set forth in Section 1.4.
	 
	1.41	 	Party and Parties shall have the meanings set forth in the introductory paragraph of this
Agreement.
	 
	1.42	 	Person shall mean any individual, partnership, limited liability company, joint venture,
corporation, trust, unincorporated organization, or governmental entity or any department
or agency thereof.
	 
	1.43	 	Planned Outage shall mean action by: (i) Local Distribution Company to take its
equipment, facilities or systems out of service, partially or completely, to perform work
on specific components that is scheduled in advance and has a predetermined start date
and an approximate duration pursuant to the procedures set forth in Section 3.7.4, or (ii)
Transmission Owner to take its equipment, facilities and systems out of service, partially
or completely, to perform work on specific components that is scheduled in advance and
has a predetermined start date and an approximate duration pursuant to the procedures set
forth in Section 3.7.4.
	 
	1.44	 	Protective Relay is a device that detects abnormal power system conditions and, in
response, initiates automatic control action.
	 
	1.45	 	Protective Relay System is a group of Protective Relays and associated sensing devices
and communications equipment that detects system abnormalities and performs
automatic control action to mitigate or reduce adverse effects of such abnormalities.
	 
	1.46	 	Qualified Personnel shall mean individuals trained for their positions pursuant to Good
Utility Practice.
	 
	1.47	 	Release shall mean spill, leak, discharge, dispose, pump, pour, emit, empty, inject,
leach, dump, or allow to escape into or through the environment.
	 
	1.48	 	Reliability Coordinator shall mean the ERO-approved entity that provides the security
assessment and emergency operations coordination for one or more Balancing
Authority/Control Areas or Transmission Owners and that has operational authority over
Transmission Owner under ERO standards. Presently the Reliability Coordinator is
MISO.

5

 

	1.49	 	Revenue Quality Metering System shall mean a system that includes current and
voltage instrument transformers, secondary wiring, test switches, meter transducer(s), meter and
loss compensation as set forth in Article 5.
	 
	1.50	 	RRO shall mean the applicable regional reliability organization, or its successor.
Presently the RRO is the Midwest Reliability Organization.
	 
	1.51	 	RTO shall mean a Regional Transmission Organization, as designated by FERC.
Presently the RTO is MISO.
	 
	1.52	 	RTU — Remote Terminal Unit shall mean a device connected by a communication system
to one or more master computers with appropriate software placed at various locations to
collect data and perform remote control. A Remote Terminal Unit may also perform
intelligent autonomous control of electrical systems and report the results back to the
master computer(s).
	 
	1.53	 	Shared Distribution Substations shall have the meaning specified in Section 3.10.2.
	 
	1.54	 	Shared Transmission Stations shall have the meaning specified in Section 3.10.1.
	 
	1.55	 	Station Power shall be the energy needed to serve the auxiliary loads within the
substation, including heating, lighting service to panels, etc at a Shared Transmission or
Shared Distribution substation.
	 
	1.56	 	Supervisory Control and Data Acquisition (SCADA) shall mean a system that provides
data acquisition, supervisory control and alarm display and control from remote field
locations to control centers.
	 
	1.57	 	Surviving Distribution Entity shall have the meaning specified in Section 24.2.
	 
	1.58	 	Surviving Transmission Entity shall have the meaning specified in Section 24.1.
	 
	1.59	 	System Restoration Plan shall mean a plan utilizing Black Start Capability designed
and implemented by Transmission Owner in conjunction with its interconnected generation
and distribution customers, Balancing Authority/Control Area Operators, other electric
systems, Reliability Coordinator and RRO to energize portions of the Transmission
System that are de-energized as a result of a widespread system disturbance.
	 
	1.60	 	Term shall have the meaning set forth in Section 22.1 hereof.
	 
	1.61	 	Transmission Owner shall mean ITC Midwest LLC and its successors and assigns.
	 
	1.62	 	Transmission Owner’s Site Representative shall be that person or persons identified in
Exhibit 2 as the point of contact of day-to-day operations of the Transmission System.
	 
	1.63	 	Transmission System shall mean all facilities of Transmission Owner through
which Transmission Owner provides transmission service under the OATT.

6

 

	1.64	 	Transmission System Operations Center(s) shall mean the Transmission System control
center(s) that is/are responsible for monitoring and controlling the Transmission System in
real time.

Article 2. Operational Requirements

	2.1	 	Subject to the terms and conditions of this Agreement,
Transmission Owner shall provide Local Distribution Company Interconnection Service for each Interconnection Point
identified in Exhibit 1, from the Effective Date for the Term of this Agreement.
	 
	2.2	 	The Interconnection Points between the Transmission System and Distribution System,
including the locations thereof and all associated equipment are described and shown on
Exhibit 1 hereto. The Parties shall amend Exhibit 1 to reflect additions to or
modifications of any Interconnection Points or any such equipment.
	 
	2.3	 	Exhibit 2 shall list Local Distribution Company’s Site Representatives and Transmission
Owner’s Site Representatives, as may be modified from time to time by the respective
Parties.
	 
	2.4	 	Interconnection Standards.

	 	2.4.1	 	The Interconnection Point(s) shall be established and maintained in accordance
with Good Utility Practice and Federal, State, ERO, RRO and RTO standards and
policies applicable to Transmission Owner’s interconnection service to Local
Distribution Company.
	 
	 	2.4.2	 	Reactive Power. Transmission Owner and Local Distribution Company
recognize and further agree that Local Distribution Company and Transmission Owner have
a mutual responsibility for maintaining voltage at each Interconnection Point, in
accordance with applicable ERO Standards, Reliability Coordinator and RRO
protocols and policies:

	 	(i)	 	Local Distribution Company shall maintain a system
average power factor of at least 98% leading or lagging, as measured at the
distribution side of the Interconnection Point(s), at load levels greater than
90% of the Local Distribution Company’s monthly system peak load.
	 
	 	(ii)	 	Local Distribution Company shall maintain a system
average power factor between 90% leading and 90% lagging, as measured at the
distribution side of the Interconnection Point(s), at load levels less than 90%
of the Local Distribution Company’s monthly system peak load.
	 
	 	(iii)	 	The Transmission Owner shall have the ability to request the
Local Distribution Company to correct power factor(s) at delivery points in an area
or region requiring reactive support. Local Distribution Company shall use
reasonable efforts to correct power factor in a timely fashion.

7

 

	 	(iv)	 	Transmission Owner recognizes that there may be situations where
power factor correction is best accomplished on the Transmission System. The
Transmission Owner shall use reasonable efforts to make appropriate changes
to the system to compensate for reactive power losses.
	 
	 	(v)	 	The Parties agree to cooperate in the installation
and management of reactive power resources connected to their respective
systems.

	2.5	 	(a) Local Distribution Company shall comply with Transmission Owner’s operating
requirements and/or switching procedures. Such operating requirements
and switching procedures are set forth in Exhibit 3.

	 	(b)	 	Transmission Owner shall comply with Local Distribution
Company’s operating requirements and/or switching procedures.
Such operating requirements and
switching procedures are set forth in Exhibit 4.
	 
	 	(c)	 	Representatives of Local Distribution Company and
Transmission Owner shall meet annually to review both Parties’ operating requirements and switching
procedures set forth in Exhibits 3 and 4 and adopt any mutually agreed
amendments to Exhibits 3 and 4 in accordance with the requirements of Section
23.2.

	2.6	 	Local Distribution Company shall be required to comply in all respects with the requests,
orders, directives and requirements of Transmission Owner including those issued to
implement directives of the Reliability Coordinator. Any such requests, orders, directives
or requirements of Transmission Owner or the Reliability Coordinator must be: (a) issued
pursuant to Good Utility Practice, (b) not unduly discriminatory, (c) otherwise in
accordance with applicable tariffs or applicable federal, state or local laws, and (d)
reasonably necessary to maintain the integrity of the Transmission System.
	 
	2.7	 	Transmission Owner shall verbally notify Local Distribution Company if Transmission
Owner is unable to comply with Section 2.5(b) at any time during the Term of this
Agreement. If the failure to comply is due to Local Distribution Company’s actions or
inactions, Transmission Owner will verbally notify Local Distribution Company to
correct such condition as soon as possible.
	 
	2.8	 	Load Shedding

	 	2.8.1	 	Local Distribution Company shall install and/or maintain automatic
under-frequency load shedding equipment as required to maintain compliance with
mandatory standards set forth by ERO, and RRO.

	 	(i)	 	Transmission Owner recognizes that as of the date of
this contract the Local Distribution Company has a large portion of its
under-frequency load that is shed from the Transmission System. The Parties
agree that the Local Distribution Company will transition all or most of its
under

8

 

	 	 	 	frequency load to the Distribution System on a schedule mutually agreed to
by the Parties.
	 
	 	(ii)	 	Transmission Owner agrees to perform all required testing and
maintenance of the under-frequency load shedding equipment that is installed
on the Transmission System and provide the test data and maintenance records
to the Local Distribution Company. Local Distribution Company will reimburse
Transmission Owner for any expenses incurred that are in excess of the
Transmission Owner’s normal maintenance practices.

	 	2.8.2	 	Local Distribution Company shall install and/or maintain
under-voltage load shedding equipment as required to maintain compliance with mandatory standards
set forth by ERO, and RRO. The equipment selection and location shall be
determined by mutual agreement of the Parties.
	 
	 	2.8.3	 	If directed to do so by the Reliability Coordinator or Transmission Owner,
Local
Distribution Company shall shed load to maintain the reliability and integrity of
the Transmission System, provided that the Reliability Coordinator or
Transmission Owner shall make load-shedding determinations on an equitable,
non-discriminatory basis with respect to all loads interconnected with the
Transmission System whose interruption is necessary to permit safe and reliable
operation and maintenance of the Transmission System;.

	2.9	 	Not a Reservation for Transmission Service

	 	2.9.1	 	Local Distribution Company, as an Eligible Customer under the OATT, shall be
responsible for making arrangements under the OATT for transmission and any
ancillary services associated with the delivery of capacity and/or energy
purchased or produced by Local Distribution Company, which services shall not
be provided under this Agreement.
	 
	 	2.9.2	 	Local Distribution Company and Transmission Owner make no guarantees to
each other under this Agreement with respect to the availability of transmission
service under the OATT or any other tariff under which transmission service may
be available in the region. Nothing in this Agreement shall constitute an express
or implied representation or warranty with respect to the current or future
availability of transmission service.

	2.10	 	Local Distribution Company, or its agent, shall have and maintain an appropriate
agreement with each Balancing Authority/Control Area with responsibility for the load
served via an Interconnection Point, under which such Balancing Authority/Control Area
shall perform balancing of such load with generation. Local Distribution Company shall
provide a copy of each such agreement to Transmission Owner.

9

 

Article 3. Operation and Maintenance

	3.1	 	The Parties agree to coordinate the operation of their electrical systems at the
Interconnection Points in compliance with Good Utility Practice to prevent or minimize
detrimental impacts on either Party’s system. The Parties agree to operate their
respective systems in synchronism at the Interconnection Points that are operated closed.
	 
	3.2	 	Each Party shall operate any equipment that might reasonably be expected to have an
impact on the operations of the other Party in a safe and efficient manner and in
accordance with all applicable federal, state, and local law, operating practices specified
by ERO, RRO and Good Utility Practice, and otherwise in accordance with the terms of
this Agreement. Each Party shall comply with such reasonable operating requests,
orders, directives and requirements of the other Party as are authorized under this
Agreement.

	3.3 	(a) 	 	Without limiting the generality of Section 3.1, Local Distribution Company shall
own, operate and maintain the Distribution System in a manner consistent with Good
Utility Practice to prevent degradation of voltage or of interconnection service of
the Transmission System. Local Distribution Company shall be responsible for the
costs of maintaining, operating, repairing or replacing the Distribution System and
Local Distribution Company’s Interconnection Equipment.

	 	(b)	 	Without limiting the generality of Section 3.1, Transmission Owner shall own,
operate and maintain the Transmission System in a manner consistent with Good
Utility Practice to prevent degradation of voltage or of interconnection service of
Local Distribution Company’s Distribution System. Transmission Owner shall be
responsible for the costs of maintaining, operating, repairing or replacing the
Transmission System and Transmission Owner’s Interconnection Equipment.

	3.4 	(a) 	 	Except during an Emergency, Local Distribution Company shall not, without
prior Transmission Owner authorization, operate any Transmission Owner circuit,
including transformer, line or bus elements. Local Distribution Company shall retain
the right to operate Transmission Owner equipment during an Emergency to address an
imminent threat to the safety of personnel, to maintain the integrity of the
Transmission System, to prevent damage to equipment and to maintain the integrity of
the Distribution System. When practical, prior to operation of such equipment, Local
Distribution Company shall provide immediate notice to Transmission Owner. Local
Distribution Company shall not operate any Transmission System circuit if upon
notice Transmission Owner expressly refused to grant permission to Local
Distribution Company. Within five (5) working days of such Emergency, Local
Distribution Company shall provide written explanation of such Emergency to
Transmission Owner.

	 	(b)	 	Except during an Emergency, Transmission Owner shall not, without prior
Local Distribution Company authorization, operate any Local Distribution Company
circuit, including transformer, line or bus elements. Transmission Owner shall

10

 

	 	 	 	retain the right to operate Local Distribution Company equipment during an Emergency
to address an imminent threat to the safety of personnel, to maintain the integrity
of the Transmission System, and to prevent damage to equipment. When practical,
prior to operation of such equipment, Transmission Owner shall provide immediate
notice to Local Distribution Company. Transmission Owner shall not operate any
Distribution System circuit if upon notice Local Distribution Company expressly
refused to grant permission to Transmission Owner. Within five (5) working days of
such Emergency, Transmission Owner shall provide written explanation of such
Emergency to Local Distribution Company.

	3.5	 	Local Distribution Company and Transmission Owner shall design, install, test, calibrate,
set, and maintain their respective Protective Relay equipment in accordance with Good
Utility Practice, applicable federal, state or local laws, ERO, RRO and RTO requirements
and this Agreement, as set forth in Article 6 hereof.

	3.6 	(a) 	 	If Transmission Owner reasonably determines that (i) any of Local Distribution
Company’s Interconnection Equipment fails to perform in a manner consistent with
Good Utility Practice and applicable ERO, RRO, and RTO requirements or this
Agreement, or (ii) Local Distribution Company has failed to perform proper testing
or maintenance of its Interconnection Equipment in accordance with Good Utility
Practice or this Agreement, Transmission Owner shall give Local Distribution Company
written notice to take corrective action. Such written notice shall be provided by
Transmission Owner to Local Distribution Company’s Site Representative as soon as
practicable upon such determination. If Local Distribution Company fails to initiate
corrective action promptly and in any event within seven (7) days after the delivery
of such notification, and if in Transmission Owner’s reasonable judgment leaving
Local Distribution Company’s Distribution System connected with Transmission System
would create an Emergency or Network Security Condition, Transmission Owner may,
with as much prior verbal notification to Local Distribution Company and Balancing
Authority/Control Area Operator as practicable, open only the Interconnection
Point(s) needing corrective action connecting Local Distribution Company and
Transmission Owner until appropriate corrective actions have been completed by Local
Distribution Company, as verified by Transmission Owner. Transmission Owner’s
judgment with regard to an interruption of service under this paragraph shall be
made pursuant to Good Utility Practice and subject to Section 3.1 hereof. In the
case of such interruption, Transmission Owner shall immediately confer with Local
Distribution Company regarding the conditions causing such interruption and Local
Distribution Company’s recommendation concerning timely correction thereof. Both
Parties shall act promptly to correct the condition leading to such interruption and
to restore the connection.

	 	(b)	 	If Local Distribution Company reasonably determines that (i) any of
Transmission Owner’s Interconnection Equipment fails to perform in a manner consistent
with Good Utility Practice and applicable ERO, RRO, and RTO requirements or this
Agreement, or (ii) Transmission Owner has failed to perform proper testing or
maintenance of its Interconnection Equipment in accordance with Good Utility

11

 

	 	 	 	Practice or this Agreement, Local Distribution Company shall give Transmission Owner
written notice to take corrective action. Such written notice shall be provided by
Local Distribution Company to Transmission Owner’s Site Representative as soon as
practicable upon such determination. If Transmission Owner fails to initiate
corrective action promptly and in any event within seven (7) days after the delivery
of such notification, and if in Local Distribution Company’s reasonable judgment
leaving Transmission System connected with Local Distribution Company’s Distribution
System would create an Emergency, Local Distribution Company may, with as much prior
verbal notification to Transmission Owner and Balancing Authority/Control Area
Operator as practicable, open only the Interconnection Point(s) needing corrective
action connecting Transmission Owner and Local Distribution Company until
appropriate corrective actions have been completed by Transmission Owner, as
verified by Local Distribution Company. Local Distribution Company’s judgment with
regard to an interruption of service under this paragraph shall be made pursuant to
Good Utility Practice and subject to Section 3.1 hereof. In the case of such
interruption, Local Distribution Company shall immediately confer with Transmission
Owner regarding the conditions causing such interruption and Transmission Owner’s
recommendation concerning timely correction thereof. Both Parties shall act promptly
to correct the condition leading to such interruption and to restore the connection.

	3.7	 	Outages

	 	3.7.1.	 	Outage Authority and Coordination. In accordance with Good Utility Practice
and applicable ERO, RRO, and RTO requirements, each Party may, in close cooperation
with the other, remove from service its system elements that may impact the other
Party’s system as necessary to perform maintenance or testing or to replace installed
equipment. Absent an Emergency, the Party scheduling a removal of a system element
from service will use good faith efforts to schedule such removal on a date mutually
acceptable to both Parties, in accordance with Good Utility Practice. The Parties
shall comply with RTO procedures relating to notification requirements for scheduled
outages.
	 
	 	3.7.2	 	The Parties shall coordinate inspections, Planned Outages, and maintenance of
their respective equipment, facilities and systems so as to minimize the impact on
the availability, reliability and security of both Parties’ systems and operations
when any such outage is likely to have a materially adverse impact on the other
Party’s system. Subject to the confidentiality provisions of Article 20 and FERC’ s
Standard of Conduct, on or before November 1 of each year during the Term hereof,
the Parties may exchange non-binding Planned Outage schedules, which shall be
developed and followed in accordance with Good Utility Practice, for the following
one-year period for the Distribution System and the Transmission System. The Parties
shall keep each other updated regarding any changes to such schedules. Each Party
shall use commercially reasonable efforts to minimize the costs of any cancellation
or rescheduling of a Planned Outage that affects the other Party’s system.

12

 

	 	3.7.3	 	Forced Outage. In the event of a Forced Outage of a system element of
the
Distribution System adversely affecting the Transmission System, Local
Distribution Company will use Good Utility Practice to restore that system
element to service promptly. In the event of a Forced Outage of a system element
of the Transmission System adversely affecting the Distribution System,
Transmission Owner will use Good Utility Practice to restore that system element
to service promptly.
	 
	 	3.7.4	 	Planned Outage. In the event of a Planned Outage of a system element of the
Distribution System adversely affecting the Transmission System, Local
Distribution Company will act in accordance with Good Utility Practice to restore
that system element to service promptly in accordance with its schedule for the
work that necessitated the Planned Outage. In the event of a Planned Outage of a
system element of the Transmission System adversely affecting the Distribution
System, Transmission Owner will act in accordance with Good Utility Practice to
restore that system element to service promptly in accordance with its schedule
for the work that necessitated the Planned Outage.

	3.8	 	The Parties shall use commercially reasonable efforts consistent with Good Utility
Practice to coordinate operations in the event of any Forced or Planned Outage.
	 
	3.9	 	System Restoration Plan Participation. In accordance with Good Utility Practice, Local
Distribution Company agrees to participate in Transmission Owner’s System Restoration
Plan for the Distribution System and the Transmission System, as well as any verification
testing of Black Start Capability.
	 
	3.10	 	Shared Transmission Stations and Distribution Substations.

	 	3.10.1	 	Each Party shall be responsible for the operation and maintenance of their
respective equipment located in stations that house facilities of both the
Transmission Owner and Local Distribution Company. In the case where the
Transmission Owner is the majority owner of the stations, they shall be referred to
as the “Shared Transmission Stations” and in the case where the Local
Distribution Company is the majority owner of the stations, they shall be referred
to as the “Shared Distribution Substations”).
	 
	 	3.10.2	 	At least once each year, the Parties shall meet and review the Parties’ respective
operational and maintenance responsibilities at all Shared Transmission Stations
and Shared Distribution Substations and, if necessary, alter such responsibilities
as the Parties deem appropriate.
	 
	 	3.10.3	 	Transmission Owner and Local Distribution Company understand and agree that
at each Shared Transmission Station or Shared Distribution Substation, there are
facilities that each Party utilizes (e.g. station batteries, some protective relay
equipment, etc.). These Jointly Used Assets will be owned by the owner of the
Shared Station who shall be responsible for operating and maintaining such
Jointly Used Assets and for all costs associated with such operation and

13

 

	 		 	maintenance. Each Party shall operate and maintain their respective Jointly Used
Assets in accordance with Good Utility Practice and all applicable provisions of
this Agreement.
	 
	 	3.10.4	 	Maintenance of Common Facilities. Notwithstanding its obligation to comply
with Good Utility Practice, as identified elsewhere in this Agreement, the Owning
Utility of Shared Transmission Stations and Shared Distribution Substations shall
perform the following maintenance activities with respect to Common Facilities of
each substation: (1) maintain the integrity of the perimeter fencing, including
code-required signage; (2) maintain the functionality of yard lighting; (3) keep the
control house secure and take reasonable efforts to control rodents therein; (4)
perform periodic cleaning of the control house in order to minimize equipment damage
due to dirt and grit; (5) weatherize control house(s) in the spring and fall in
order to maintain proper ventilation and adequate heat and avoid a negative impact
on the serviceability of equipment; (6) weed treat the substation yard annually and
maintain adequate stone to maintain step and touch potentials at safe levels; and
(7) keep station access drives in drivable condition and free of snow and ice,
maintaining a path to the control house(s) and around the perimeter of the equipment
where possible.

	3.11	 	Station Power. The Parties agree that (i) Local Distribution Company’s system losses
include the Station Power supplied by Local Distribution Company to the Purchased
Transmission Assets (as defined in the Asset Sale Agreement), and accordingly that (ii)
Local Distribution Company shall supply Station Power to the Purchased Transmission
Assets at no cost to Transmission Owner. The Transmission Owner may request, from
the Local Distribution Company or appropriate service provider, additional Station
Power sources to the Purchased Transmission Assets (as defined in the Asset Sale
Agreement), or to new transmission station(s). In such circumstances, the provision of
such additional Station Power sources shall be subject to the terms and rates of the Local
Distribution Company’s, or appropriate service provider’s, applicable tariff for such
service.
	 
	3.12	 	Multiple Use Transmission Structures. The Parties acknowledge and understand that the
Transmission System includes certain transmission structures with both transmission and
distribution lines attached thereto (“Multiple Use Transmission Structures”). With
regard to the operation and maintenance of such Multiple Use Transmission Structures,
the Parties agree that:

	 	3.12.1	 	Subject to Sections 3.12.2 and 3.12.3, Transmission Owner shall allow Local
Distribution Company to maintain without charge attachments of those
distribution lines existing as of the Effective Date to the Multiple Use
Transmission Structures.
	 
	 	3.12.2	 	For Facilities that have been designed as Multiple Use Transmission Structures
prior to the Effective Date and can accommodate attachment of distribution lines,
there shall be no charge by Transmission Owner for attachments.

14

 

	 	3.12.3	 	Transmission Owner shall be responsible for the costs associated with
maintaining, relocating, upgrading or implementing other changes to the
transmission structures designated as Multiple Use Transmission Structures;
provided, however, that Local Distribution Company shall be responsible for all
costs associated with the distribution lines attached to such Multiple Use
Transmission Structures, including, but not limited to, costs associated with
maintaining, relocating, upgrading or implementing other changes to such
distribution lines.
	 
	 	3.12.4	 	Transmission Owner shall provide Local Distribution Company reasonable
advance notice of any planned change to Multiple Use Transmission Structures
that may require Local Distribution Company to relocate or otherwise change its
distribution lines attached thereto. If it is necessary under generally accepted
utility practice for the Local Distribution Company’s distribution lines to be
removed from Multiple Use Transmission Structures then the Transmission
Owner shall allow Local Distribution Company’s distribution lines to remain
attached to the Multiple Use Transmission Structures for a commercially
reasonable period in order to allow Local Distribution Company to develop a
suitable alternative for its distribution lines; provided, however,
that such interim
use of Multiple Use Transmission Structures by Local Distribution Company shall
neither impair the provision of non-discriminatory, open access transmission
service over the Transmission System nor interfere with any planned additions or
upgrades to such facilities proposed by Transmission Owner or directed by the
RTO, FERC or any other Governmental Authority with jurisdiction to require
such addition or expansion to the Transmission System. Local Distribution
Company shall act in good faith and exercise Due Diligence in developing and
implementing a suitable alternative for its distribution lines.

Article 4. Supervisory Control and Data Acquisition, SCADA

	4.1	 	Interconnection Points containing SCADA and communications equipment installed prior to
the Effective Date shall be considered to satisfy the terms and conditions of this Article 4.
Local Distribution Company shall install and operate such SCADA and communications equipment
as is necessary consistent with Good Utility Practice, and ERO and RRO requirements for
Transmission Owner to perform monitoring, state estimation and contingency analysis for (i)
Interconnection Points that existed prior to the Effective Date and did not contain SCADA and
communications equipment or (ii) new Interconnection Points installed after the Effective
Date. Each Interconnection Point or other mutually agreeable location with SCADA and
communications equipment shall have one dedicated communications path to Balancing
Authority/Control Area Operator’s control center for the RTU data. Additional data paths and
communications equipment requested, either emanating from the substation or the Balancing
Authority/Control Area Operator’s control center, will be at the expense of the requestor. The
SCADA and communications equipment may provide data and status information in real time or
with a time delay acceptable to Transmission Owner and shall provide data and control via an
industry standard protocol such as ICCP or another method agreed by

15

 

	 	 	the Parties. Such data may include, but not be limited to megawatts, megavars, voltage,
amperes, device status and communication system status.
	 
	4.2	 	Transmission Owner reserves the right (at Transmission Owner’s expense) to require
Local Distribution Company to install or cause to be installed at any new or modified
Interconnection Point a dual port RTU within Local Distribution Company’s substation
to provide data and control directly to the Transmission Owner. Local Distribution
Company will assist in furnishing desired inputs and outputs for such RTU.
	 
	4.3	 	The operating metering system shall consist of instantaneous values of MW, MVAR,
voltage and current (amperes). Amperes may be measured directly or calculated based on measured values.

	 	4.3.1	 	Values shall be inputted to a Remote Terminal Unit (RTU) or comparable
communication device for communication with the Balancing Authority/Control Area Operator.
	 
	 	4.3.2	 	Transducers may utilize the voltage transformers and current transformer
secondary circuits also utilized by the revenue metering equipment for a particular
interconnection. In such case, the performance criteria listed in Exhibit 8 hereto
for the voltage transformers and the current transformers shall apply. Relaying
class voltage transformers and current transformers are not to be utilized unless
mutually agreed by all the owners of the metering equipment and the Balancing
Authority/Control Area Operator.
	 
	 	4.3.3	 	Transducers shall have at most 0.3% inaccuracy. Transducers shall be field
calibrated at least once every ten (10) years, or as necessary, and documentation
shall be retained showing the calibration results until three (3) years after the last
calibration. The Transmission Owner and Local Distribution Company agree
that, as to all Interconnection Points in existence as of the Effective Date, no new
or different equipment shall be installed to meet the requirements of this section.

	4.4	 	To the extent new SCADA and associated communications equipment is to be installed,
Local Distribution Company shall install or facilitate installation of SCADA and
associated communications equipment as soon as practicable, provided that installation
shall be accomplished within a time period of no more than 180 days following notice by
Transmission Owner or prior to installation of any new Interconnection Points.

Article 5. Revenue Metering

	5.1	 	Local Distribution Company shall own, operate, test and maintain or contract for the
metering equipment at the Interconnection Points with Transmission Owner, as required by
this Article 5. Transmission Owner and Local Distribution Company agree that, as to all
Interconnection Points in existence as of the Effective Date, no new or different metering
equipment or arrangements shall be required. For existing Interconnection Points where
low-side metering exists without loss compensation, Parties will agree to loss compensation
factors. To the extent existing metering equipment is replaced or new metering equipment is
installed at Interconnection Points in existence as of the Effective

16

 

	 	 	Date, such replacements or installations shall meet the standards set in Section 5.2. Local
Distribution Company shall install metering equipment that meets the standards set forth in
Section 5.2 at all new Interconnection Points.

	5.2	 	The Revenue Quality Metering System shall consist of all instrument transformers
(current and voltage), secondary wiring, test switches and meter(s) required to determine
the metering values for record for any given metering point.

	 	5.2.1	 	Metering shall be form 9, 3 element for 4 wire systems and form 5, 2 element
for 3 wire systems.
	 
	 	5.2.2	 	Meters shall measure, at a minimum, megawatt hours and megavar hours and
have bi-directional capability, where applicable. All measured values shall have
individual outputs, (such as DNP and KYZ), where applicable and a minimum 35-
day interval data recording capability for each measured value.
	 
	 	5.2.3	 	Revenue-quality loss-compensated metering shall be acceptable if the metering
facilities and the Interconnection Point are not at the same physical location. The
metering shall account for real power losses between the location of the meter and
the Interconnection Point and no-load losses of the power transformer. Real
power losses between the location of the meter and the Interconnection Point must
be agreed upon by both parties. The meter data management system for
determining such losses shall be MV-90 or an equivalent meter data management
system.
	 
	 	5.2.4	 	The Party that owns the metering equipment shall maintain records that
demonstrate compliance with all meter tests and maintenance conducted in
accordance with Good Utility Practice for the life of the Interconnection Point.
The non-owning Party shall have reasonable access to the records.
	 
	 	5.2.5	 	For installations where the metering is performed using loss compensation, the
factory certified test results of the power transformer, including load, no-load
losses and calculated meter loss calculations, shall be recorded in writing. The
non-owning Party shall have reasonable access to the records. If factory certified
test results, including load and no-load losses are not available, then both parties
shall endeavor to agree on the loss compensation value.
	 
	 	5.2.6	 	Records showing metering instrument transformers’ factory certified or utility
test shop test results showing compliance with applicable metering test standards shall
be maintained by the meter owner. The non-owning Party shall have reasonable
access to the records. Metering transformers must be at least .3% accuracy class.
	 
	 	5.2.7	 	A meter’s factory certified or utility test result, showing compliance with
applicable metering test standards, shall be maintained by the meter owner. The
non-owning Party shall have reasonable access to the records.
	 
	 	5.2.8	 	Metering equipment shall be tested by the Party owning said equipment at
suitable intervals agreed upon by the Parties. Such test intervals shall not exceed

17

 

	 	 	 	4 years. The meters’ accuracy shall be maintained at a minimum in accordance with
applicable regulatory standards. At the request of either Party, special tests, outside the
agreed upon test interval, shall be made. If any special meter test discloses the metering
device to be registering within acceptable limits of accuracy as specified herein, then the
Party requesting such special meter test shall bear the expense thereof. Otherwise, the
expense of such test shall be borne by the owner. Representatives of each Party shall be
afforded opportunity to be present at all routine or special tests and upon occasions when
any readings for purposes of settlements hereunder are taken from meters not producing an
automatic record.

	 	5.2.9	 	If, as a result of any test, any meter shall be found to be registering more than one
(1) per cent above or below one hundred (100) percent of accuracy, the account
between the Parties hereto shall be corrected, for a period equal to one-half of the
elapsed time since the last prior test, according to the percentage of inaccuracy so
found, except that if the meter shall have become defective or inaccurate at a
reasonably ascertainable time since the last prior test of such meter, the correction
shall extend back to such time. No meter shall be left in service if found to be
more than 0.5 percent above or below one hundred (100) percent of accuracy at
series full and light load, unity power factor. Should metering equipment at any
time fail to register, the energy delivered shall be determined from the best
available data. All meters shall be kept under seal, such seals to be broken only
when the meters are to be tested or adjusted.
	 
	 	5.2.10	 	Test switches shall be installed to allow independent testing and/or replacement of
each meter and transducer utilizing the secondary circuit. No other piece of
equipment shall be in the revenue metering secondary circuit.
	 
	 	5.2.11	 	In substations where an RTU or other remote data collecting and
telecommunication device is present, meters shall have form C, 3-wire outputs
with programmable values determined by Local Distribution Company for bi-
directional MWHs and MVARs. Such form C, 3 wire outputs shall be connected
to an isolation relay before connecting to the RTU. Alternatively, real time
SCADA (Watts, Vars, Voltage, PF, Current, Frequency, etc.) and equivalent pulse
accumulator values may be electronically ported from the revenue meter to the
station RTU when technically feasible and upon agreement of the parties.
	 
	 	5.2.12	 	In interconnecting substations where electrical energy is resold to another local
distribution company other than the one interconnecting with the Transmission
Owner at such substation, revenue meters shall also be equipped with modems
connected to a land phone circuit. The land line shall be provided and paid for by
Local Distribution Company. Also acceptable is using a meter and equipment so
the meter can be accessed by using a TCP/IP address.
	 
	 	5.2.13	 	In the event of an interconnection meter needing replacement or repair, a
representative from the non-owning party shall be given a reasonable opportunity to be present during such repair or replacement.

18

 

	 	5.2.14	 	Transmission Owner shall have the right to read the revenue meters remotely,
and in a secure manner, as reasonably necessary to facilitate billing and
calculation and verification of revenues.

Article 6. Protective Relaying and Control

	6.1	 	Transmission Owner shall have the right, using Good Utility Practice, to review and
approve all new Protective Relaying logic equipment, including equipment settings,
protective relay schemes, drawings, and functionality associated with each
Interconnection Point. Local Distribution Company shall have the right, using Good
Utility Practice, to review all new Protective Relaying logic equipment, including
equipment settings, protective relay schemes, drawings, and functionality associated with
each Interconnection Point. Protective Relaying logic equipment and schemes installed
before the Effective Date shall be considered to satisfy the terms and conditions of this
Article 6. When existing equipment or schemes installed prior to the Effective Date are
replaced or when new equipment or schemes are installed pursuant to this Article 6 or in
association with new Interconnection Points, then such replacement or installation shall
be performed in accordance with the terms and conditions of this Article 6.
	 
	6.2	 	To the extent that there is generation on the Distribution System that, in the reasonable
judgment of either Party, may contribute material amounts of current to a fault on the
Transmission System, Local Distribution Company shall have and enforce standards to
ensure the provision, installation and maintenance of relays, circuit breakers, and all other
devices necessary to remove promptly any fault contribution of such generation to any
short circuit occurring on the Transmission System and not otherwise isolated by the
Transmission Owner equipment. Such protective equipment shall include, without
limitation, a disconnecting device or switch with load interrupting capability to be located
between the generation and the Transmission System at an accessible, secure, and
satisfactory site selected upon mutual agreement of the Parties. Transmission Owner shall
not be responsible for protection of such generation.
	 
	6.3	 	Any Protective Relay System that causes any Transmission Owner protective device or
Local Distribution Company protective or switching device connected to a Transmission
Owner bus to operate shall be maintained and tested in accordance with the provisions of
this Article 6.
	 
	6.4	 	Transmission Owner shall, in accordance with Good Utility Practice, own, operate,
maintain and test those Protective Relays, current transformers, and potential
transformers listed in Exhibit 1 that provide protection for the Transmission System.
Local Distribution Company shall, in accordance with Good Utility Practice, own,
operate, maintain, and test any remaining Protective Relays governed by this Article 6.
The Parties shall maintain, and, as necessary, upgrade their respective Protective Relay
Systems in accordance with Good Utility Practice, and each Party shall provide the other
Party with access to copies of operation and maintenance manuals and test records for all
relay equipment.

19

 

	6.5	 	The Parties shall test their respective relays associated with the Interconnection
Points for correct calibration and operation in accordance with Good Utility Practice. Complete
functional testing of the relay protection schemes shall be performed at the same time.
Parties shall coordinate design, installation, operation, and testing of Protective Relay
schemes to insure that such relays operate in a coordinated manner so as to not cause
adverse operating conditions on the other Party’s system.
	 
	6.6	 	Local Distribution Company shall be responsible for maintenance, calibration and
functional testing of Protective Relay systems that protect Local Distribution Company’s
equipment associated with the Interconnection Points and that protect Transmission
Owner from Local Distribution Company’s Interconnection Equipment to the extent such
calibration and testing are consistent with Good Utility Practice. All such maintenance
and testing must be performed by Qualified Personnel selected by Local Distribution
Company. In addition, Local Distribution Company shall allow Transmission Owner to
conduct regularly scheduled, visual inspection of all Protective Relaying and associated
maintenance records. Related maintenance and operational records shall be maintained
by Local Distribution Company in accordance with Good Utility Practice. Upon
completion of all Protective Relay calibration testing and relay functional testing, Local
Distribution Company shall make available copies of all test reports and related records
for review by Transmission Owner. Local Distribution Company shall review all test
reports and document that Protective Relay System’s tests and settings, as shown on such
test reports, have been done in accordance with the equipment’s specifications and Good
Utility Practice.

	6.7 	(a)	 	As Transmission Owner’s system protection requirements change and as system
protection technology advances, Transmission Owner will upgrade its Protective Relay
System in accordance with Good Utility Practice. If these upgrades affect the
serviceability and acceptability of the Protective Relay Systems on the
Interconnection Equipment installed, owned, and operated by Local Distribution
Company, Local Distribution Company must (at its own expense) upgrade its Protective
Relay Systems as necessary to bring them into compatibility with, and adopt the
technological standards of, the Protective Relay Systems installed by Transmission
Owner. Transmission Owner shall give Local Distribution Company notice of any such
upgrade as soon as practicable prior to the anticipated date of such upgrade.
	 
	 	(b)	 	As Local Distribution Company’s system protection requirements change and
as technology advances, Local Distribution Company will upgrade its Protective Relay
System in accordance with Good Utility Practice. If these upgrades affect the
serviceability and acceptability of the Protective Relay Systems on the Interconnection
Equipment installed, owned, and operated by Transmission Owner, Transmission Owner must
(at its own expense) upgrade its Protective Relay Systems as necessary to bring them
into compatibility with, and adopt the technological standards of, the Protective Relay
Systems installed by Local Distribution Company. Local Distribution Company shall give
Transmission Owner notice of any such upgrade as soon as practicable prior to the
anticipated date of such upgrade.

20

 

	 	(c)	 	Exhibit 1 shall be updated by the Parties to reflect any changes in
Protective Relay Systems as they are made.

	6.8	 	Local Distribution Company shall provide the necessary space to install or expand relay
panels for substation system protection if requested by Transmission Owner. Any
incremental costs required to accommodate such a request shall be the responsibility of
Transmission Owner.
	 
	6.9	 	Transmission Owner shall provide the necessary space to install or expand relay panels
for substation system protection if requested by Local Distribution Company. Any
incremental costs required to accommodate such a request shall be the responsibility of
Local Distribution Company.

Article 7. Planning and Obligation to Serve

	7.1	 	Adequacy Obligation. Subject to applicable regulatory approvals, including the
principles of least-cost long-term planning applicable to maintaining the overall reliability of the
transmission and distribution system in the planning horizon, and subject to the oversight
and direction of the RTO (or any successor regional transmission organization) where
applicable, Transmission Owner shall have a public utility duty to operate, maintain, plan
and construct the Transmission System so that the system is adequate:

	 	(a)	(i)	 	to support effective competition in energy markets without favoring any market participant;
	 
	 	 	(ii)	 	to deliver on a reliable basis the reasonable, projected
needs of all loads on the electric distribution systems connected to and
dependent upon the Transmission Owner’s facilities for delivery of reliable,
low-cost and competitively-priced electricity to such distribution systems; and
	 
	 	 	(iii)	 	to provide needed support to the distribution systems
interconnected to the Transmission System; and

	 	(b)	 	In meeting these obligations, the Transmission Owner shall treat the
needs of each electric distribution system interconnected with the Transmission system,
and the electric loads on each system in a nondiscriminatory manner. The costs of
additions to the Transmission System to meet this adequacy obligation shall not be
directly assigned or charged to a distribution system, or to end users separately,
unless approved or required by the appropriate regulatory agency.

	7.2	 	Local Distribution Company and Transmission Owner shall discuss, at appropriate
intervals, the needs of Local Distribution Company and the plans of Transmission Owner
that could affect Local Distribution Company. The Parties agree to cooperate and
coordinate as necessary on planning and construction of projects that affect Local
Distribution Company.
	 
	7.3	 	If the Parties agree upon the need for any such project, they shall cooperate and
coordinate in seeking all necessary regulatory approval for such project. The Parties shall

21

 

	 	 	coordinate and cooperate with each other with respect to all communications and
commitments to municipal, county, and state agencies involved in such project.

	7.4	 	If Local Distribution Company proposes construction of a transmission project and
Transmission Owner does not agree that such project is needed, Local Distribution
Company shall have the right to petition the applicable Governmental Authority for a
declaratory ruling on whether the proposed project is needed pursuant to Transmission
Owner’s public-utility duty to plan and construct a reliable, adequate system. The Parties
agree that the ruling of the applicable Governmental Authority will be binding upon
them.
	 
	7.5	 	Load Growth and Reliability Needs. Transmission Owner is obligated to plan and
install any Transmission System components that may be necessary to accommodate Local
Distribution Company’s planned load growth and planned reliability improvements.
Transmission Owner will construct new interconnections with Local Distribution
Company facilities in accordance with Transmission Owner’s planning criteria, other
agreements in effect between the Parties, and Good Utility Practice. Transmission Owner
shall bear the responsibility for such planning and installing in accordance with this
Article 7. Transmission Owner’s obligations under this Section 7.5 shall include the
planning and installation of any new Interconnection Points that may be necessary to
accommodate Local Distribution Company’s planned load growth and planned reliability
improvements. Recovery of the cost of such additions shall be in accordance with Section 7.1.
	 
	7.6	 	To facilitate planning and construction discussions under Section 7.2, Local Distribution
Company, or its designated representative, shall annually submit the following
information, on a commercially reasonable efforts basis, to Transmission Owner:

	 	(a)	 	no later than November 1 of each year, the most recent actual summer and winter
peak demands in megawatts (MW) and megavars (MVAR) for each
Interconnection Point with the Transmission System, coincident with Local
Distribution Company’s peak demand for these seasons, and
	 
	 	(b)	 	no later than February 1 of each year:

	 	(i)	 	seasonal peak demand forecasts (MW and MVAR) for each
Local Distribution Company Interconnection Point with the Transmission System
for the next ten (10) years as required by the RRO, RTO or ERO for the
Transmission Owner’s model; and
	 
	 	(ii)	 	planned facility connections (new Interconnection
Points) with the Transmission System for the next ten (10) years.

	 	 	Transmission Owner will treat all information disclosed by Local Distribution Company under
this Section 7.6 as Confidential Information

22

 

Article 8. New Construction and Modification

	8.1	 	Subject to this Article 8, Transmission Owner may construct additional Transmission
System elements or modify the existing Transmission System and Local Distribution
Company may construct additional Distribution System elements or modify the existing
Distribution System. All such modifications and construction provided for herein, shall
be conducted in accordance with Good Utility Practice and all applicable ERO, and RRO
standards. Each Party shall only be responsible for the costs to modify its own system
elements and the costs to construct new elements of its system and shall not be
responsible for the costs imposed on the other party as a result of such modification or
new construction. However, during the period while such modification or new
construction is under way, the Party modifying system elements or constructing new
system elements shall maintain the transmission, distribution and communications
capabilities of the other Party using Good Utility Practice to avoid or minimize any
adverse impact on the other Party.
	 
	8.2	 	Notwithstanding the foregoing, no modifications to, or new construction of, facilities, or
access thereto, including but not limited to rights-of-way, fences, and gates, shall be
made by either Party that might reasonably be expected to have a material effect upon the
other Party with respect to operations or performance under this Agreement, without
providing such other Party (a) prior written notification as set forth in this Article 8,
and (b) sufficient information regarding the work prior to commencement to enable such
other Party to evaluate the impact of the proposed work on its operations. The
information provided must be sufficiently detailed to enable reasonable review by such
other Party and satisfy such other Party’s reasonable operational requirements. Each
Party shall use reasonable efforts to minimize any adverse impact on the other Party.
	 
	8.3	 	If any Party intends to install any new facilities, equipment, systems, or circuits or any
modifications to existing or future facilities, equipment, systems or circuits that could
reasonably be expected to have a material effect upon the operation of the other Party, the
Party desiring to perform said work shall, in addition to the requirements of Section 8.2,
provide the other Party with drawings, plans, specifications and other necessary
documentation for review at least 60 days prior to the start of the construction of any such
installation. This notice period shall not apply to modifications or new installations made
to resolve or prevent pending Emergency or Network Security Conditions.
	 
	8.4	 	The Party reviewing any drawings, plans, specifications, or other necessary
documentation shall promptly review the same and provide any comments to the
performing Party no later than 30 days prior to the start of the construction of any
installation. The performing Party shall incorporate all requested modifications to the
extent required to maintain Good Utility Practice and compliance with this Agreement.
	 
	8.5	 	Within 180 days after any modification or construction subject to this Article 8 is placed
in service, the Party initiating the work shall provide “as built” drawings, plans and
related technical data to the other Party. Approval or review of any document referenced
herein shall not relieve the initiating party of its responsibility for the design or

23

 

	 	 	construction of any proposed facility, nor shall it subject the other Party to any
liability, except with respect to the confidentiality provisions of Article 20.

	8.6	 	Each Party shall, at its own expense, have the right to inspect or observe all
maintenance activities, equipment tests and installation, construction, and modification of
facilities of the other Party that could have a material effect upon the facilities or
operations of the first Party.

Article 9. Access to Facilities

	9.1	 	The Parties hereby agree to provide each other such access to facilities, properties,
equipment and records as may be necessary and appropriate to enable each Party to
maintain its respective facilities, equipment and property in a manner consistent with
Good Utility Practice. Such access shall be provided in a manner so as not to interfere
unreasonably with the ongoing business operations, rights, and obligations of either
Party. Any such access shall be subject to applicable federal, state and local laws and
regulations and the rules and operation guidelines of the Party owning such facilities or
properties, including without limitation any requirement of such Party that personnel
make communication with the other Party upon entering such Party’s facilities or
properties.
	 
	9.2	 	Without limiting the generality of Section 9.1, Transmission Owner shall have access to
all of its equipment, systems, and facilities located on Local Distribution Company’s
property through easements granted to Transmission Owner and substantially in the form
of Exhibit 7 (“Easements”), and Local Distribution Company shall have access to all
its equipment, systems and facilities located on Transmission Owner’s property through
similar Easements. A schedule of easement agreements that will be governed by the
terms of this Agreement is attached hereto and incorporated herein by this reference as
Exhibit 7, Schedule 1. Transmission Owner and Local Distribution Company
acknowledge and agree that Exhibit 7, Schedule 1 may be revised and supplemented from
time to time to add and/or delete easements as additional facilities are added or retired.
Such supplementation shall not require formal amendment to this Agreement. Each Party
shall furnish at no cost to the other Party any necessary access, easements, licenses,
and/or rights of way upon, over, under, and across lands owned or controlled by either
Party and/or its affiliated interests for the construction and operation of necessary lines,
substations, and other equipment to accomplish interconnection of such other Party’s
facilities with the Transmission System under this Agreement and shall, at all reasonable
times, give such other Party, or its agents, free access to such lines, substations, and
equipment, as allowed by applicable ERO, or RRO policies, standards, or rules. An
accessible, protected and satisfactory site selected upon mutual agreement by the Parties
and located on Local Distribution Company’s premises shall be provided by and at Local
Distribution Company’s expense for installation of metering devices, unless
Transmission Owner elects to install meters on poles or other locations controlled by it.
Local Distribution Company grants to Transmission Owner at all reasonable times and
with reasonable supervision, the right of free ingress and egress to Local Distribution
Company’s premises for the purpose of installing, testing, reading, inspecting, repairing,
operating, altering, or removing any of Transmission Owner’s property located on Local

24

 

	 	 	Distribution Company’s premises or for other purposes necessary to enable Transmission Owner
to receive electric energy, suspend the receipt thereof, or determine Local Distribution
Company’s compliance with this Agreement.

	9.3	 	Each Party shall provide the other Party keys, access codes or other access methods
necessary to gain unassisted access to the other Party’s facilities to exercise rights under
this Agreement. Access shall only be granted to Qualified Personnel.
	 
	9.4	 	Neither Party shall make changes to the site topography or accesses, including but not
limited to grading or drainage, that could reasonably be expected to have a material
adverse effect upon the other Party’s facilities or common use drainage or pollution
control systems without the prior written consent of the other Party, such consent not to
be unreasonably withheld.

Article 10. Notifications and Reporting

	10.1	 	Unless otherwise provided, any notice required to be given by either Party to the other
Party in connection with this Agreement shall be given in writing: (a) personally; (b) by
facsimile transmission (if the sender thereafter sends such notice to the recipient by any
of the other methods provided in this Section 10.1); (c) by registered or certified U.S.
mail, return receipt requested, postage prepaid; or (d) by reputable overnight carrier, with
acknowledged receipt of delivery; or (e) any other method mutually agreed by the Parties
in writing. Notice given personally shall be deemed given on the date of personal receipt.
Notice sent by facsimile shall be deemed given on the date the transmission is confirmed
by sender’s facsimile machine, so long as the facsimile is sent on a business day during
normal business hours of the recipient. Otherwise, notice by facsimile shall be deemed
given on the next succeeding business day. Notice provided by mail or overnight courier
shall be deemed given at the date of acceptance or refusal of acceptance shown on such receipt.
	 
	10.2	 	Notice to Transmission Owner shall be to Transmission Owner’s Site Representative, at
the address identified in Exhibit 2. Notice to Local Distribution Company shall be to
Local Distribution Company’s Site Representative, at the address identified in Exhibit 2
	 
	10.3	 	Each Party shall provide prompt notice to the other Party describing: (i) the nature and
extent of any Emergency or Network Security Condition that may be reasonably
anticipated to affect the other Party’s equipment, facilities or operations, (ii) the impact
on operations, and (iii) all corrective action. Either Party may take reasonable and
necessary action, both on its own and the other Party’s system, equipment, and facilities,
to prevent, avoid or mitigate injury, danger, damage or loss to its own equipment and
facilities, or to expedite restoration of service; provided, however, that the Party taking
such action shall give the other Party prior notice, if at all possible, before taking any
action on the other Party’s system, equipment, or facilities.
	 
	10.4	 	In the event of an Emergency or Network Security Condition contemplated by Section
10.3, each Party shall provide to the other such information, documents, and data as are
necessary for operation of the Transmission System and Distribution System, including,

25

 

	 	 	without limitation, such information as is to be supplied to any Governmental Authority,
ERO, RRO, Transmission System Operations Center, or Balancing Authority/Control Area
Operator.

	10.5	 	In order to continue interconnection of the Distribution System and Transmission System,
each Party shall promptly provide the other Party with all relevant information,
documents, or data regarding the Distribution System and the Transmission System that
would be reasonably expected to affect the Distribution System or Transmission System
and is reasonably requested by ERO, RRO, or any Governmental Authority.
	 
	10.6	 	A Party performing routine maintenance and inspection activities that do not require
major equipment or system outages and have no material impact on the other Party shall
provide the other Party with at least twenty-four (24) hours’ prior notice, if practicable.
A Party performing routine maintenance and inspection activities that will require major
equipment or system outages shall provide the other Party with not less than seventy-two
(72) hours’ prior notice, if practicable; provided that the provisions of Section
3.7.2 remain applicable to the outages and that the notice required by this Section 10.6 shall be
in addition to, and does not substitute for, the requirements of Section 3.7. As noted in
Article 3.7, Parties must comply with the applicable RTO procedures.
	 
	10.7	 	Transmission Owner shall notify Local Distribution Company prior to entering Local
Distribution Company’s facilities for routine measurements, inspections and meter reads
in accordance with the requirements of Section 10.6. Local Distribution Company shall
notify Transmission Owner prior to entering Transmission Owner’s facilities, including
switchyards, for routine maintenance, operations, measurements, inspections and meter
reads, in accordance with the requirements of Section 10.6.
	 
	10.8	 	Each Party shall provide prompt verbal notice to the other Party of any system alarm
relating to the other Party’s equipment, unless the system alarm is automatically sent to the other Party.
	 
	10.9	 	Upon request, each Party shall provide a report or a copy of the data from a system events
recorder or digital fault recorder relating to the other Party’s equipment.
	 
	10.10	 	Each Party agrees to notify the other Party immediately verbally, and then in writing, of
any labor dispute or anticipated labor dispute of which its management has actual
knowledge that might reasonably be expected to affect the operations of the other Party
with respect to this Agreement.

Article 11. Safety

	11.1	 	Each Party agrees that all work performed by either Party that may reasonably be
expected to affect the other Party shall be performed in accordance with Good Utility
Practice and all applicable laws, regulations, safety standards, practices and procedures
and other requirements pertaining to the safety of persons or property (including, but not
limited to those of the Occupational Safety and Health Administration, the National
Electrical Safety Code and those developed or accepted by Transmission Owner and Local
Distribution Company for use on their respective systems) and Good Utility

26

 

	 	 	Practice when entering or working in the other Party’s property or facilities or
switching area. A Party performing work within the boundaries of the other Party’s
facilities must abide by the safety rules applicable to the site.

	11.2	 	Each Party shall be solely responsible for the safety and supervision of its own
employees, agents, representatives, and subcontractors.
	 
	11.3	 	Transmission Owner shall immediately report any injuries that occur while working on
Local Distribution Company’s property, facilities or switching area to appropriate
agencies and Local Distribution Company’s Site Representative. Local Distribution
Company shall immediately report any injuries that occur while working on
Transmission Owner’s property or facilities or switching area to appropriate agencies and
the Transmission Owner’s Site Representative. Each Party will provide the other with its
clearing/tagging/lockout procedures. Local Distribution Company’s procedures shall
govern clearances requested or initiated by Local Distribution Company on equipment of
Local Distribution Company that utilizes the Transmission Owner’s equipment as an
isolation device. Transmission Owner’s procedures shall govern clearances requested or
initiated by Transmission Owner on equipment of Transmission Owner that utilizes the
Local Distribution Company’s equipment as an isolation device.

Article 12. Environmental Compliance and Procedures

	12.1	 	Each Party shall immediately provide verbal notification to the other Party upon the
discovery of any Release of any hazardous substance caused by the Party’s operations or
equipment that impacts the assets or facilities of the other Party or upon discovery of the
Release of any hazardous substance that may reasonably be expected to migrate to, or
adversely impact, the property, facilities or operations of the other Party and shall
promptly furnish to the other Party copies of any reports filed with any governmental
agencies addressing such events. Such verbal notification shall be followed by written
notification within twenty-four (24) hours. The Party responsible for the Release of any
hazardous substance on the property or facilities of the other Party, or of any hazardous
substance that may migrate to, or adversely impact the property, facilities or operations of
the other Party shall be responsible for the reasonable cost of performing any and all
remediation or abatement activity and submitting all reports or filings required by
environmental laws. Advance written notification (except in emergency situations, in which
verbal, followed by written notification, shall be provided as soon as practicable) shall be
provided by any Party performing any remediation or abatement activity on the property or
facilities of the other Party, or that may adversely impact the property, facilities, or
operations of, the other Party. Except in emergency situations, such remediation or
abatement activity shall be performed only with the consent of the Party owning the affected
property or facilities. The Parties agree to coordinate, to the extent necessary, the
preparation of site plans, reports or filings required by law or regulation, including but
not limited to Spill Prevention, Control and Countermeasures (SPCC) and Stormwater Pollution
Prevention Plans (SWPP) required by any regulatory agency of competent jurisdiction.

27

 

Article 13. Billings and Payment

	13.1	 	Any invoices payable under this Agreement shall be provided to the other Party under
this Agreement within a reasonable time after the first day of each month. Each invoice
shall indicate the month in which services were provided, shall fully describe the services
rendered and shall be itemized to reflect the services performed or provided. The invoice
shall be paid within sixty (60) days of the invoice date.
	 
	13.2	 	Any payments required to be made by Local Distribution Company under this Agreement
shall be made to Transmission Owner at the following address:

ITC
Midwest LLC
39500 Orchard Hill
Place
Novi, MI 48375

Fax: (248) 374-7129

Attention: Accounts Receivable

	 	 	Any payments required to be made by Transmission Owner under this Agreement shall be made
to Local Distribution Company at the following address:

Interstate Power and Light Company

200 First Street SE

P.O. Box 351

Cedar Rapids, IA, 52406-0351

Fax: (319) 786-4492

Attention: Vern Gebhart, Vice President, Customer Service

Operations.

	13.3	 	The rate of interest on any amount not paid when due shall be equal to the Interest Rate in
effect at the time such amount became due. Interest on delinquent amounts shall be
calculated from the due date of the bill to the date of the payment. When payments are
made by mail, bills shall be considered as having been paid on the date of receipt by the
other Party. Nothing contained in this Article is intended to limit either Party’s remedies
under Article 21 of this Agreement.
	 
	13.4	 	Payment of an invoice shall not relieve the paying Party from any responsibilities or
obligations it has under this Agreement, nor shall such payment constitute a waiver of
any claims arising hereunder.
	 
	13.5	 	If all or part of any bill is disputed by a Party, that Party shall promptly pay the amount
that is not disputed and provide the other Party a reasonably detailed written explanation
of the basis for the Dispute pursuant to Article 26. The disputed amount shall be paid into
an independent escrow account pending resolution of the Dispute, at which time the
prevailing Party shall be entitled to receive the disputed amount, as finally determined to
be payable, along with interest accrued at the Interest Rate through the date on which
payment is made, within ten (10) business days of such resolution.

28

 

	13.6	 	Neither Party shall be responsible for the other Party’s costs of collecting
amounts due under this Agreement, including attorney fees and expenses and the expenses of
arbitration.

Article 14. Applicable Regulations and Interpretation

	14.1	 	Each Party’s performance under this Agreement is subject to the condition that all
requisite governmental and regulatory approvals for such performance are obtained in
form and substance satisfactory to the other Party in its reasonable judgment. Each Party
shall exercise Due Diligence and shall act in good faith to secure all appropriate
approvals in a timely fashion.
	 
	14.2	 	This Agreement is made subject to present or future state or federal laws, regulations, or
orders properly issued by state or federal bodies having jurisdiction. This Agreement
shall be interpreted pursuant to the laws of the State of Iowa without regard to any
conflicts of law principles and to the Federal Power Act and the regulatory agency or
agencies having jurisdiction over the particular matter.

Article 15. Force Majeure

	15.1	 	General. Except for the obligation to make any payments under this Agreement, neither
Party shall be considered to be in default or breach of this Agreement or liable in
damages or otherwise responsible to the other Party for any delay in or failure to carry
out any of its obligations under this Agreement if, and only to the extent that, the Party is
unable to perform or is prevented from performing by an event of Force Majeure.
Notwithstanding the foregoing sentence, neither Party may claim Force Majeure for any
delay or failure to perform or carry out any provision of this Agreement to the extent that
such Party has been negligent or engaged in intentional misconduct and such negligence
or intentional misconduct substantially and directly caused that Party’s delay or failure to
perform or carry out its duties and obligations under this Agreement.
	 
	15.2	 	Force Majeure Defined. The term Force Majeure means those events beyond the
reasonable control of, and without the fault or negligence of, the Party claiming Force
Majeure which, through the exercise of Good Utility Practice, that Party could not have
avoided and which, by exercise of Due Diligence, that Party is unable to overcome. Such
events include, but are not limited to, the following, to the extent they conform to the
foregoing criteria: labor disputes (including a strike) flood; lightning strikes; earthquake;
fire; epidemic; war; invasion; riot; civil disturbance; sabotage or vandalism; explosion;
insurrection; military or usurped power; action of any court or Governmental Authority,
or any civil or military authority de facto or de jure; act of God or the public enemy; or
any other event or cause of a similar nature beyond a Party’s reasonable control. Mere
economic hardship does not constitute Force Majeure.
	 
	15.3	 	Procedures. A Party claiming Force Majeure must:

	 	15.3.1	 	give written notice to the other Party of the occurrence of a Force Majeure event no
later than three (3) business days after learning of the occurrence of such an event;

29

 

	 	15.3.2	 	use Due Diligence to resume performance or the provision of service hereunder
as
soon as practicable;
	 
	 	15.3.3	 	take all commercially reasonable actions to correct or cure the Force Majeure
event;
	 
	 	15.3.4	 	exercise all reasonable efforts to mitigate or limit damages to the other Party,
except that neither party shall be required to settle any strike, walkout, lockout or
other labor dispute on terms that, in the sole judgment of the Party involved in the
dispute, are contrary to its interest; and
	 
	 	15.3.5	 	provide prompt written notice to the other Party of the cessation of the adverse
effect of the Force Majeure event on its ability to perform its
obligations under this Agreement.

Article 16. Limitation of Liability

	16.1	 	With respect to claims by and between the Parties under this Agreement, notwithstanding
any other provision of this Agreement, liability of each Party shall be limited to direct
actual damages, and all other damages at law or in equity are waived. Under no circumstances
shall either Party or its affiliates, directors, officers, employees and agents, or any of
them, be liable to the other Party, whether in tort, contract or other basis in law or equity
for any special, indirect, punitive, exemplary or consequential damages, including without
limitation such damages for: loss of profits or revenue from work not performed, loss of use
of or under-utilization of the other Party’s facilities, loss of use of revenues, attorneys’
fees, litigation costs and loss of anticipated profits resulting from either Party’s
performance or non-performance of an obligation imposed by this Agreement. The limitations on
damages specified in this section are without regard to the cause or causes related thereto,
including the negligence of any Party, whether such negligence be sole, joint or concurrent,
or active or passive. This limitation shall not apply to claims for death, bodily injury or
third party claims.

Article 17. Indemnification

	17.1	 	Local Distribution Company’s Indemnification. Subject to the provisions of
Article 16, Local Distribution Company shall indemnify, hold harmless and defend Transmission
Owner, and its officers, directors, employees, affiliates, managers, members, trustees,
shareholders, agents, contractors, subcontractors, affiliates’ employees, invitees and
successors, from and against any and all claims, demands, suits, obligations, payments,
liabilities, costs, losses, judgments, damages and expenses (including the reasonable costs
and expenses of any and all actions, suits, proceedings, assessments, judgments, settlements,
and compromises relating thereto, reasonable attorneys’ and experts’ fees and reasonable
disbursements in connection therewith) for damage to property, or injury to, or death of, any
individual, including Transmission Owner’s employees and affiliates’ employees, Local
Distribution Company’s employees, or any other third parties, to the extent caused wholly or
in part by any act or omission, negligence or otherwise, by Local Distribution Company or its
officers, directors, employees, agents, contractors,

30

 

subcontractors and invitees arising out of or connected with Local Distribution Company’s
performance or breach of this Agreement, or the exercise by Local Distribution Company of
its rights hereunder; provided, however, that the provisions of this Section shall
not apply if any such injury, death or damage is held to have been caused by the negligence
or intentional wrongdoing of Transmission Owner, its agents or employees. In furtherance of
the foregoing indemnification and not by way of limitation thereof, Local Distribution
Company hereby waives any defense it otherwise might have under applicable workers’
compensation laws.

	17.2	 	Transmission Owner’s Indemnification. Subject to the provisions of Article 16,
Transmission Owner shall indemnify, hold harmless and defend Local Distribution
Company, its parent and its officers, directors, employees, affiliates, managers, members,
trustees, shareholders, agents, contractors, subcontractors, invitees and successors, from
and against any and all claims, demands, suits, obligations, payments, liabilities, costs,
losses, judgments, damages and expenses (including the reasonable costs and expenses of
any and all actions, suits, proceedings, assessments, judgments, settlements, and
compromises relating thereto, reasonable attorneys’ and expert fees and reasonable
disbursements in connection therewith) for damage to property, or injury to, or death of
any individual, including Local Distribution Company’s employees and affiliates’
employees, Transmission Owner’s employees, or any other third parties, to the extent
caused wholly or in part by any act or omission, negligence or otherwise, by
Transmission Owner or its officers, directors, employees, agents, contractors,
subcontractors and invitees arising out of or connected with Transmission Owner’s
performance or breach of this Agreement, or the exercise by Transmission Owner of its
rights hereunder; provided, however, that the provisions of this Section shall not apply if
any such injury, death or damage is held to have been caused by the negligence or
intentional wrongdoing of Local Distribution Company, its agents or employees. In
furtherance of the foregoing indemnification and not by way of limitation thereof,
Transmission Owner hereby waives any defense it otherwise might have under applicable
workers’ compensation laws.
	 
	17.3	 	Indemnification Procedures. Any Party seeking indemnification under this Agreement
shall give the other Party notice of such claim as soon as practicable. Such notice shall
describe the claim in reasonable detail, and shall indicate the amount (estimated if
necessary) of the claim that has been, or may be sustained by, said Party. To the extent
that the other Party will have been actually and materially prejudiced as a result of the
failure to provide such notice, such notice will be a condition precedent to any liability
of
the other Party under the provisions for indemnification contained in this Agreement.
Neither Party may settle or compromise any claim for which indemnification is sought
under this Agreement without the prior consent of the other Party; provided,
however,
said consent shall not be unreasonably withheld or delayed. Each Party’s indemnification
obligation will survive expiration, cancellation or early termination of this Agreement.

Article 18. Insurance

	 	 	 	 	 
	18.1

	 	(a)
	 	The Parties agree to maintain, at their own cost and expense, general and
automobile liability, worker’s compensation, and other forms of insurance

31

 

	 	 	 	 	 
	 

	 	 	 	relating to their operations for the life of this Agreement in the manner, and
amounts, as are usual and customary for similarly situated companies in their
respective industries.
	 
	 	 	 	 
	 

	 	(b)
	 	Upon request, each Party shall provide to the other Party, properly executed
and
current certificates of insurance with respect to all insurance policies required to
be maintained by such Party under this Agreement. Certificates of insurance shall
provide the following information:

	 	(i)	 	name of insurance company, policy number and expiration date;
	 
	 	(ii)	 	the coverage required and the limits on each, including the amount of
deductibles or self-insured retentions, which shall be for the account of
the Party maintaining such policy;
	 
	 	(iii)	 	a statement indicating that the other Party shall
endeavor to provide at least thirty (30) days’ prior written notice of
cancellation of a policy.

	 	 	 	 	 
	 

	 	(c)
	 	If any insurance is written on a “claims made” basis, the primary insured
Party
shall maintain the coverage for a minimum of three (3) years
after the termination of this Agreement.

Article 19. Several Obligations

	19.1	 	Except where specifically stated in this Agreement to be otherwise, the duties,
obligations and liabilities of the Parties are intended to be several and not joint or
collective. Nothing contained in this Agreement shall ever be construed to create an
association, trust, partnership, or joint venture or to impose a trust or partnership duty,
obligation or liability or agency relationship on or with regard to either Party. Each Party
shall be individually and severally liable for its own obligations under this Agreement.

Article 20. Confidentiality

	 	 	 	 	 
	20.1

	 	(a)
	 	“Confidential Information” shall mean any confidential, proprietary or
trade secret information of or relating to a Party, including any plan, specification,
pattern, procedure, design, device, list, concept, policy or compilation relating to the
present or planned business of a Party, that is designated in good faith as Confidential by
the Party supplying the information, whether conveyed orally, electronically, in writing,
through inspection or otherwise. Confidential Information shall include, without limitation,
all information relating to a Party’s technology, research and development, business affairs,
pricing and customer-specific load data that constitutes a trade secret, and any information
supplied by either of the Parties to the other prior to the execution of this Agreement.
	 
	 	 	 	 
	 

	 	(b)
	 	General. Each Party will hold in confidence any and all
Confidential Information unless compelled to disclose such information (1) by judicial
or administrative process or other provisions of law or as otherwise provided for in
this Agreement, or (2) to meet obligations imposed by FERC or by a state or other
federal entity or

32

 

	 	 	 	 	 
	 

	 	 	 	by membership in ERO, RTO, or RRO (including without limitation obligations to
disclose to other Transmission Owners). Information required to be disclosed under
(b)(l) or (b)(2) above, does not, by itself, cause any information provided by Local
Distribution Company to Transmission Owner to lose its confidentiality.
Notwithstanding the first sentence of this Section 20.1(b), a Party that receives
Confidential Information may disclose the Confidential Information to a third party
to the extent such third party needs to know the Confidential Information for the
purpose of assisting such Party with respect to such Party’s obligations or rights
under this Agreement, provided that any such disclosure shall be consistent with the
applicable rules and regulations of FERC, including the FERC Standards of Conduct,
and provided further that such Party shall advise said third party of the
confidentiality provisions of this Agreement and use its best efforts to require
said third party to agree in writing to comply with such provisions. Transmission
Owner will develop and file with FERC standards of conduct relating to the sharing
of market-related Confidential Information with and by Transmission Owner employees.
	 
	 	 	 	 
	 

	 	(c)
	 	Term: During the term of this Agreement, and for a period of three
(3) years after
the expiration or termination of this Agreement, except as otherwise provided in
this Article 20, each Party shall hold in confidence and shall not disclose to any
person Confidential Information.
	 
	 	 	 	 
	 

	 	(d)
	 	Standard of Care: Each Party shall use at lease the same
standard of care to
protect Confidential Information it receives as that it uses to protect its own
Confidential Information from unauthorized disclosure, publication or
dissemination.

	20.2	 	Scope: Confidential Information shall not include information that the receiving
Party can demonstrate: (1) is generally available to the public other than as a result of
disclosure by the receiving Party; (2) was in the lawful possession of the receiving Party
on a non-confidential basis prior to receiving it from the disclosing Party; (3) was
supplied to the receiving Party without restriction by a third party, who, to the knowledge
of the receiving Party, after due inquiry was under no obligation to the disclosing party to
keep such information confidential; (4) was independently developed by the receiving
party without reference to Confidential Information of the Disclosing Party; (5) is, or
becomes, publicly known, through no wrongful act or omission of the receiving Party or
breach of this Agreement; or (6) is required, in accordance with Section 20.1(b) of this
Agreement, to be disclosed by any federal or state government or agency or is otherwise
required to be disclosed by law or subpoena, or is necessary in any legal proceeding
establishing rights and obligations under this Agreement. Information designated as
Confidential Information will no longer be deemed confidential if the Party that
designated the information as confidential notifies the other Party that it no longer is
confidential.
	 
	20.3	 	Order of Disclosure. If a court or a government agency or entity with the right power,
and apparent authority to do so requests or requires either Party, by subpoena, oral
deposition, interrogatories, requests for production of documents, administrative order, or

33

 

		 	otherwise, to disclose Confidential Information, that Party shall provide the other Party
with prompt notice of such request(s) or requirement(s) so that the other Party may seek an
appropriate protective order or waive compliance with the terms of this Agreement. The
notifying Party shall have no obligation to oppose or object to any attempt to obtain such
production except to the extent requested to do so by the disclosing Party and at the
disclosing Party’s expense. If either Party desires to object or oppose such production, it
must do so at its own expense. The disclosing Party may request a protective order to
prevent any Confidential Information from being made public. Notwithstanding the absence of
a protective order or waiver, the Party may disclose such Confidential Information as, in
the opinion of its counsel, the Party is legally compelled to disclose. Each Party will use
reasonable effort to obtain reliable assurance that confidential treatment will be accorded
any Confidential Information so furnished.
	 
	20.4	 	Use of Information or Documentation. Each Party may utilize information or
documentation furnished by the disclosing Party and subject to Section 20.1 in any
proceeding under Article 26 or in an administrative agency or court of competent
jurisdiction addressing any dispute arising under this Agreement, subject to a
confidentiality agreement with all participants (including, if applicable, any arbitrator) or
a protective order.
	 
	20.5	 	Remedies Regarding Confidentiality. The Parties agree that monetary damages by
themselves will be inadequate to compensate a Party for the other Party’s breach of its
obligations under Article 20. Each Party accordingly agrees that if such Party breaches or
threatens to breach its obligations under Article 20, the other Party shall be entitled to
equitable relief, by way of injunction or otherwise.

Article 21. Breach, Default and Remedies

	21.1	 	General. A breach of this Agreement
(“Breach”) shall occur upon the failure by a Party to
perform or observe a material term or condition of this Agreement. A default of this
Agreement (“Default”) shall occur upon the failure of a Party in Breach of this
Agreement to cure such Breach in accordance with Section 21.4.
	 
	21.2	 	Events of Breach. A Breach of this Agreement shall include:

	 	(a)	 	the failure to pay any amount when due;
	 
	 	(b)	 	the failure to comply with any material term or condition of this Agreement,
including but not limited to any material Breach of a representation, warranty or
covenant made in this Agreement;
	 
	 	(c)	 	a Party’s abandonment of its work or the facilities contemplated in this Agreement;
	 
	 	(d)	 	a Party’s: (1) insolvency; (2) filing of a voluntary petition in bankruptcy
under any provision of any federal or state bankruptcy law or consent to the filing of any
bankruptcy or reorganization petition against such Party under any similar law;

34

 

	 	 	 	(3)general assignment for the benefit of such Party’s creditors; or (4) consent to
the appointment of a receiver, trustee or liquidator;
	 
	 	(e)	 	assignment of this Agreement in a manner inconsistent with the terms of
this Agreement;
	 
	 	(f)	 	either Party’s failure to provide such access rights, or attempt to
revoke or terminate such access rights, as provided under this Agreement; or
	 
	 	(g)	 	failure of either Party to provide information or data to the other Party as
required under this Agreement, provided that the Party entitled to the information or
data under this Agreement requires such information or data to satisfy its obligations
under this Agreement.

	21.3	 	Continued Operation. Except as specifically provided in this Agreement, in the event
of a Breach or Default by either Party, the Parties shall continue to operate and maintain, as
applicable, facilities and appurtenances that are reasonably necessary for the
Transmission Owner to operate and maintain the Transmission System, or for the Local
Distribution Company to operate and maintain the Distribution System, in a safe and
reliable manner.
	 
	21.4	 	Cure and Default. Upon the occurrence of an event of Breach, the non-Breaching Party,
when it becomes aware of the Breach, shall give written notice of the Breach to the
Breaching Party and to any other person a Party to this Agreement identifies in writing to
the other Party in advance. Such notice shall set forth, in reasonable detail, the nature of
the Breach, and where known and applicable, the steps necessary to cure such Breach.
Upon receiving written notice of the Breach hereunder, the Breaching Party shall have
thirty (30) days, to cure such Breach. If the Breach is such that it cannot be cured within
thirty (30) days, the Breaching Party will commence in good faith all steps as are
reasonable and appropriate to cure the Breach within such thirty (30) day time period and
thereafter diligently pursue such action to completion. In the event the Breaching Party
fails to cure the Breach, or to commence reasonable and appropriate steps to cure the
Breach, within thirty (30) days of becoming aware of the Breach, the Breaching Party
will be in Default of the Agreement. In the event of a Default, the non-Defaulting Party
has the right to seek to terminate the Agreement or take whatever action at law or equity
as may be permitted under this Agreement. Any termination under this Agreement shall
not take effect until FERC either authorizes the termination of this Agreement or accepts
written notice of its termination.
	 
	21.5	 	Abandonment. Upon abandonment as referenced in article 21.2.c above, the non-abandoning party shall have the right to purchase the abandoned facilities at the net book
value multiplied by the Net Premium Multiple.
	 
	21.6	 	Right to Compel Performance. Notwithstanding the foregoing, upon the occurrence of an
event of Default, the non-Defaulting Party shall be entitled to commence an action to
require the Defaulting Party to remedy such Default and specifically perform its duties

35

 

	 	 	and obligations hereunder in accordance with the terms and conditions hereof, and
exercise such other rights and remedies as it may have in equity or at law.

Article 22. Term

	22.1	 	Term. Subject to Article 22.2, this Agreement shall become effective as of the Effective
Date and shall continue in full force and effect for an initial period of twenty (20) years
and shall be automatically renewed for each successive one-year period thereafter on the
anniversary of the Effective Date.
	 
	22.2	 	Termination on Default. This Agreement may be terminated upon a Party’s Default in
accordance with the provisions of Article 21.
	 
	22.3	 	Material Adverse Change.

	 	(a)	 	In the event of a material change in law or regulation that adversely affects,
or may reasonably be expected to adversely affect, either Party’s performance under
this Agreement (“Material Adverse Change”), the Parties will negotiate in
good faith any amendment or amendments to the Agreement necessary to adapt the
terms of this Agreement to such change in law or regulation, and Transmission
Owner shall file such amendment or amendments for acceptance by FERC, as
applicable. Material Adverse Changes shall include without limitation:

	 	(i)	 	refusal by FERC to accept this Agreement for filing
without material modification or condition;
	 
	 	(ii)	 	prevention by ERO, RTO, or RRO, in whole or in part, of
either Party from performing any provision of this Agreement in accordance with
its terms; and
	 
	 	(iii)	 	implementation by FERC, the United States Congress, any
state, or any federal or state regulatory agency or commission of any change in
any law, regulation, rule or practice that materially affects or is reasonably
expected to materially affect either Party’s ability to perform under this
Agreement.

	 	(b)	 	If the Parties are unable to reach agreement on any such amendments, then the
Parties shall continue to perform under this Agreement to the maximum extent
possible, taking all reasonable steps to mitigate any adverse effect on each other
resulting from the material change in law or regulation. If the Parties are unable
to
reach agreement on any such amendments, Transmission Owner shall have the
right to make a unilateral filing with FERC to modify this Agreement pursuant to
Section 205 of the Federal Power Act and Local Distribution Customer shall have
the right to make a unilateral filing with FERC to modify this Agreement pursuant
to Section 206 of the Federal Power Act. Each Party shall have the right to protest
any such filing by the other Party and to participate fully in any proceeding before
FERC.

36

 

	22.4	 	Regulatory Filing. The Transmission Owner shall file this Agreement with FERC
as a
rate schedule within the meaning of 18 C.F.R. Part 35. Local Distribution Company
agrees to cooperate reasonably with Transmission Owner with respect to such filing and
to provide any information, including testimony reasonably requested by Transmission
Owner, needed to comply with applicable regulatory requirements.
	 
	22.5	 	Survival. The applicable provisions of this Agreement shall continue in effect during
dispute resolution (as provided for in Article 26) and after expiration, cancellation or
termination hereof to the extent necessary to provide for final billings, billing adjustments
and the determination and enforcement of liability and indemnification obligations
arising from acts or events that occurred while this Agreement was in effect.

Article 23. Amendment

	23.1	 	Section 205 and 206 Rights. Notwithstanding any other provision in this Agreement to
the contrary any Party may unilaterally make application to FERC under Section 205 or
206 of the Federal Power Act and/or pursuant to FERC’s rules and regulations
promulgated thereunder for a change in any rate, term, condition, charge, classification of
service, rule or regulation under or related to this Agreement. The standard of review
FERC shall apply when acting on proposed modifications to this agreement, either on
FERC’s own motion or on behalf of a signatory or a non-signatory, shall be the “just and
reasonable” standard of review rather than the “public interest” standard of review.
	 
	23.2	 	Amendments. Except as provided for in Section 23.1 above, this Agreement may only be
modified, amended, changed or supplemented in writing signed by both Parties.

Article 24. Assignment/Change in Corporate Identity

	24.1	 	Transmission Owner Assignment Rights. Transmission Owner may not assign this
Agreement or any of its rights, interests, or obligations hereunder without the prior
written consent of Local Distribution Company, which consent shall not be unreasonably
withheld; provided however, that Transmission Owner may assign this Agreement or any
of its rights or obligations hereunder without the prior written consent of Local
Distribution Company and may assign this Agreement to any entity or entities
(collectively, the “Surviving Transmission Entity”) in connection with a merger,
consolidation, or reorganization, provided that the Surviving Transmission Entity or
assignee owns the Transmission System and agrees in writing to be bound by all the
obligations and duties of Transmission Owner provided for in this Agreement.
	 
	24.2	 	Local Distribution Company Assignment Rights. Local Distribution Company may not
assign this Agreement or any of its rights, interests or obligations hereunder without the
prior written consent of Transmission Owner, which consent shall not be unreasonably
withheld; provided however, that Local Distribution Company may, without the consent
of Transmission Owner, and by providing prior reasonable notice under the
circumstances to Transmission Owner, assign, this Agreement to any entity or entities
(collectively, the “Surviving Distribution Entity”) in connection with a merger,
consolidation, or reorganization, provided that the Surviving Distribution Entity or

37

 

	 	 	assignee owns the Local Distribution System, agrees in writing to be bound by all the
obligations and duties of Local Distribution Company provided for in this Agreement.
	 
	24.3	 	Assigning Party to Remain Responsible. Any assignments authorized as provided for in
this Article will not operate to relieve the Party assigning this Agreement or any of its
rights, interests or obligations hereunder of the responsibility of full compliance with
the
requirements of this Agreement unless (a) the other Party consents (which consent shall
not be unreasonably withheld), and (b) the assignee agrees in writing to be bound by all
of the obligations and duties of the assigning Party provided for in this Agreement.
	 
	24.4	 	This Agreement and all of the provisions hereof are binding upon, and inure to the benefit
of, the Parties and their respective successors and permitted assigns.

Article 25. Subcontractors

	25.1	 	Nothing in this Agreement shall prevent the Parties from utilizing the services of
subcontractors as they deem appropriate; provided, however, that the Parties agree that,
where applicable, all said subcontractors shall comply with the terms and conditions of
this Agreement.
	 
	25.2	 	Except as provided herein, the creation of any subcontract relationship shall not relieve
the hiring Party of any of its obligations under this Agreement. Each Party shall be fully
responsible to the other Party for the acts and/or omissions of any subcontractor it hires
as if no subcontract had been made. Any obligation imposed by this Agreement upon the
Parties, where applicable, shall be equally binding upon and applicable to any
subcontractor.
	 
	25.3	 	No subcontractor is intended to be or shall be deemed a third-party beneficiary of this
Agreement.
	 
	25.4	 	The obligations under this Article 25 shall not be limited in any way by any limitation on
subcontractors’ insurance.
	 
	25.5	 	Each Party shall require its subcontractors to comply with all federal and state laws
regarding insurance requirements and shall maintain standard and ordinary insurance
coverages.

Article 26. Dispute Resolution

	26.1	 	Any claim or dispute that either Party may have against the other arising out of or
relating to this Agreement or the breach, termination or validity thereof (any such claim or
dispute, a “Dispute”) shall be submitted in writing to the other Party no later than
the latter of: (i) sixty (60) days after the circumstances that gave rise to the Dispute have
taken place, or (ii) sixty (60) days of discovery of such circumstances. The submission of any
Dispute shall be made to either Local Distribution Company’s Site Representative or
Transmission Owner’s Site Representative, and shall include a concise statement of the
question or issue in dispute, together with a statement listing the relevant facts and
documentation that support the claim. In the event Transmission Owner’s Site

38

 

	 	 	Representative and Local Distribution Company’s Site Representative are unable in good
faith to resolve their disagreement satisfactorily within thirty (30) days from the receipt
of notice of the Dispute, either Party may by written notice to the other refer the Dispute
to their respective senior management.
	 
	26.2	 	If any Dispute arising hereunder is not resolved within thirty (30) days after notice
thereof to the other Party, the Parties shall follow the Dispute Resolution procedures in
Exhibit 9 hereto.

Article 27. Miscellaneous Provisions

	27.1	 	This Agreement shall constitute the entire agreement between the Parties hereto relating
to the subject matter hereof. In all other respects, special contracts or superseding rate
schedules shall govern Transmission Owner’s transmission service to Local Distribution
Company.
	 
	27.2	 	No failure or delay on the part of Transmission Owner or Local Distribution Company in
exercising any of its rights under this Agreement, no partial exercise by either Party of
any of its rights under this Agreement, and no course of dealing between the Parties shall
constitute a waiver of the rights of either Party under this Agreement. No waiver shall be
effective other than by a written instrument signed by the Party granting such waiver, and
no such waiver shall operate as a waiver of, or estoppel with respect to, any subsequent
failure to comply therewith.
	 
	27.3	 	Nothing in this Agreement, express or implied, is intended to confer on any person other
than the Parties hereto any rights, interests, obligations or remedies hereunder.
	 
	27.4	 	In the event that any clause or provision of this Agreement or any part hereof shall be
held to be invalid, void, or unenforceable by any court or other Governmental Authority
of competent jurisdiction, said holding or action shall be strictly construed and shall not
affect the validity or effect of any other provision hereof, and the Parties shall endeavor
in good faith to replace such invalid or unenforceable provisions with a valid and
enforceable provision that achieves the purposes intended by the Parties to the greatest
extent permitted by law.
	 
	27.5	 	The Parties hereto agree to execute and deliver promptly, at the expense of the Party
requesting such action, any and all other and further instruments, documents and
information that may be reasonably requested in order to effectuate the transactions
contemplated hereby. The Parties agree to cooperate and assist each other in acquiring
any regulatory approval necessary to effectuate this Agreement.
	 
	27.6	 	The Article and Section headings herein are inserted for convenience only and are not to
be construed as part of the terms hereof or used in the interpretation of this Agreement.
	 
	27.7	 	In the event an ambiguity or question of intent or interpretation arises, this Agreement
shall be construed as if drafted jointly by the Parties and no presumption or burden of
proof shall arise favoring or disfavoring any Party by virtue of authorship of any of the
provisions of this Agreement. Any reference to any federal, state, local, or foreign statute

39

 

		 	or law shall be deemed also to refer to all rules and regulations promulgated thereunder,
unless the context requires otherwise. The word “including” in this Agreement shall mean
including without limitation.
	 
	27.8	 	This Agreement may be executed in one or more counterparts, each of which shall be
deemed an original.
	 
	27.9	 	Each Party shall act as an independent contractor with respect to the provision of services
hereunder.
	 
	27.10	 	Nothing in this Agreement addresses, or is intended to address, the interconnection
service, and standards governing such service, provided by Transmission Owner to
interconnect the Transmission System with the generating facilities of the Local
Distribution Company or to any generating facilities of any entity affiliated with the
Local Distribution Company.
	 
	27.11	 	Affiliate Status of Parties. For purposes of this Agreement, neither Party shall be
considered an affiliate of the other.
	 
	27.12	 	Mutual Agreement. Whenever the Parties are called upon to review, approve or
mutually agree regarding any provision of this Agreement, such review, approval or mutual
agreement shall not be unreasonably withheld or delayed.

40

 

IN WITNESS WHEREOF, Transmission Owner and Local Distribution Company have caused this instrument
to be executed by their duly authorized representatives as of the day and year first above written.

	 	 	 	 	 
	 	ITC MIDWEST LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	INTERSTATE POWER AND LIGHT COMPANY

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

41

 

	 	 	 	 	 

Exhibit 1

Identification of the Interconnection Points and Equipment

The Interconnection Points between the Transmission Owner and Local Distribution Company, for
purposes of this agreement are detailed in Attachment A — Transmission Switching Diagrams.
Attachment A may be updated from time to time as Interconnection Points between the Transmission
Owner and Local Distribution Company are added or deleted.

The Interconnection Point between the Transmission Owner and the Local Distribution Company shall
be defined as the transmission side of the disconnect device serving the Local Distribution
Company.

42

 

Exhibit 2

Contact Information For Local Distribution Company’s Site Representatives

and Transmission Owner’s Site Representatives

Local Distribution Company’s Contact List

Vice President Customer Operations

Interstate Power and Light

200 First St SE

Cedar Rapids, Iowa 52401-1409

Transmission Owner’s Contact List

Vice President, Operations

ITC Midwest LLC
 39500 Orchard
Hill Place
 Suite 200
 Novi,
Michigan 48375

 

 

Exhibit 3

Transmission Company Switching Procedures

The enclosed Transmission Company Switching Procedure is a document that may be modified from time
to time. The version attached is the latest as of the date the Interconnection Agreement was
executed. It is the responsibility of the Local Distribution Company to confirm with Transmission
Company the latest approved version of the procedure.

 

 

SWITCHING, TAGGING, AND WORKER PROTECTION AT ITC

MIDWEST TRANSMISSION / IPL DISTRIBUTION INTERFACES

	 	 	 	 	 
	

	 	Category:
	 	External Entity Interface
	 	Type:
	 	Operations/IPL System Control
	 	Document:
	 	EEI-055
	 	Owner:
	 	Pat Maurer, Director Real Time Operations
	 	Date/Revision
	 	10/26/2007                    000
	 	Approval:
	 	Elizabeth Howell, Vice President, Operations

 

			
	*	 	ITC Midwest is referred to herein as ITC

	1.	 	INTRODUCTION

	 	1.1.	 	ITC Midwest is referred to herein as ITC.
	 
	 	1.2.	 	The purpose of this procedure is to outline the required process when
switching and/or tagging is required by Interstate Power & Light (IPL)
Distribution Dispatch Center (DDC) and/or ITC to accommodate
scheduled or unscheduled outages/work. It also outlines the method for
applying an IPL Hold Card/ ITC Red Personal Protective Tag for Worker
Protection for another company.

	2.	 	SCOPE AND RESPONSIBILITY

	 	2.1.	 	This procedure applies to the ITC Operations Control Room (OCR) and
IPL DDC.

	3.	 	REFERENCES

	 	3.1.	 	N/A

	4.	 	PRECAUTIONS

	 	4.1.	 	Protection — Assurance provided from one company to another that
appropriate equipment has been de-energized, isolated through the use of
ITC Red Personal Protective Tags/ IPL Hold Cards, and will not be
reenergized by the action(s) of the providing company.
	 
	 	4.2.	 	Clearance — Both IPL and ITC use the term “Clearance” as an internal
control measure and define it as the following:

	 	4.2.1.	 	IPL — “The control of de-energized equipment or line section given to a
person responsible for clearance by an authorized person. Clearance shall include
and identify where tags are located; where system grounds are applied, if any;
what adjacent equipment is energized and a reminder to test for voltage and
install personal protective grounds.”

 

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	 	4.2.2.	 	ITC — “The minimum approach distance between energized assets.”

	 	4.3.	 	Clearing — ITC uses the term “Clearing” or “Clear” as an internal control
measure and defines it as the following:

	 	4.3.1.	 	“The releasing of protection.”

	 	4.4.	 	Working Clearance — IPL uses the term “working clearance” as an internal
control measure and defines is as the following:

	 	4.4.1.	 	“When clearance has been received and the equipment has been tested and
personal protective grounds have been installed or the equipment has been
isolated in an approved manner.”

	 	4.5.	 	NOTE: Because of the differing definitions, the term “Clearance” will
NOT be used between companies.

	5.	 	PROCEDURE

	 	5.1.	 	Emergency switching to protect life or limb does not require pre-
notification to either party; however, a verbal report will be issued between
IPL DDC and the ITC Transmission System Coordinator (TSC), as soon
as possible, after the event.
	 
	 	5.2.	 	IPL DDC will direct all switching operations on equipment owned by IPL.
	 
	 	5.3.	 	The ITC TSC will direct all switching operations on equipment owned by
ITC.
	 
	 	5.4.	 	IPL Switching Coordinator and ITC Shutdown Coordinator will utilize good
operating practices when coordinating operations that require joint
switching and tagging operations. All operations will ensure that safety
and reliability are maintained to regulatory and corporate standards
(including the application of Caution Tags, when appropriate).
	 
	 	5.5.	 	The IPL Senior Resource Coordinator and ITC TSC will discuss all
operations for the day. This call should occur between 0001 hours and
0600 hours, Central time.
	 
	 	5.6.	 	If either party is unable to meet joint switching commitments, a call will be
initiated immediately to notify the other Control Center.
	 
	 	5.7.	 	Prior to beginning switching operations, the IPL Senior Resource
Coordinator and ITC TSC will allow sufficient time to coordinate switching
efforts between the two Control Centers.

 

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SWITCHING, TAGGING, AND WORKER PROTECTION AT ITC

MIDWEST TRANSMISSION / IPL DISTRIBUTION INTERFACES

	 	5.8.	 	Outages fall into two major categories:

	 	5.8.1.	 	Scheduled — Contact and coordination between the IPL Switching
Coordinator and the ITC Shutdown Coordinator.
	 
	 	5.8.2.	 	Unscheduled — Contact and coordination between IPL DDC and the
ITC TSC.

	 	5.9.	 	Tagging For Protection: The IPL Hold Cards & ITC Red Personal
Protective Tags are used for worker protection. When a potential source
of electrical energy exists that is not under the control of the company
taking the outage, that company must contact the asset owner and
request “protection” for their worker(s).

	 	5.9.1.	 	The company taking the outage will request the asset owner to
provide Protection for interconnecting equipment:

	 	5.9.1.1.	 	IPL System Control will contact the ITC TSC and state
the following:

	 	5.9.1.1.1.	 	“I am the IPL Senior Resource Coordinator
and I am requesting Protection on (named
equipment) for IPL DDC.”
	 
	 	5.9.1.1.2.	 	The ITC TSC will repeat the instructions
back word for word.

	 	5.9.1.2.	 	For ITC, the TSC will contact IPL DDC and state the
following:

	 	5.9.1.2.1.	 	“The ITC TSC is requesting Protection from
IPL DDC at (named equipment).”
	 
	 	5.9.1.2.2.	 	The IPL DDC Senior Resource Coordinator
will repeat the instructions back word for
word.

	 	5.9.2.	 	The asset owner of the device(s) involved will, in accordance with
their safety rules/tagging procedure:

	 	5.9.2.1.	 	Open the device(s);

	 	5.9.2.1.1.	 	Apply Hold Card(s)/Red Personal Protective
Tag(s) for Protection.

 
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	 	5.9.3.	 	The asset owner will contact either IPL DDC or the ITC TSC, as
appropriate, and state the following:

	 	5.9.3.1.	 	The IPL Senior Resource Coordinator will contact ITC
TSC and state the following “I am providing you with
Protection on (named equipment) for ITC TSC with Hold
Card XXXXX installed at 0000 hours.” (Central time)
	 
	 	5.9.3.2.	 	ITC TSC will repeat the instructions back word for word.
	 
	 	5.9.3.3.	 	The ITC TSC will contact the IPL Senior Resource
Coordinator and state the following “I am providing you
with Protection on (named equipment) at 0000 hours.”
(Central time)
	 
	 	5.9.3.4.	 	The IPL DDC Senior Resource Coordinator will repeat
the instructions back word for word.

	 	5.9.4.	 	When protection is no longer needed, the company holding the
Protection will release the Protection to the asset owner.

	 	5.9.4.1.	 	IPL DDC will contact the ITC TSC and state the following:

	 	5.9.4.1.1.	 	“I am reporting clear of Protection on
(named equipment) on behalf of IPL DDC
at 0000 hours.”
	 
	 	5.9.4.1.2.	 	ITC TSC will repeat the instructions back
word for word.

	 	5.9.4.2.	 	For ITC, the TSC will contact IPL DDC and state the
following:

	 	5.9.4.2.1.	 	“ITC TSC is reporting clear of Protection at
(name equipment) releasing Hold Card
XXXXX at 0000 hours.”
	 
	 	5.9.4.2.2.	 	The IPL DDC Senior Resource Coordinator
will repeat the instructions back word for

word.

	 	5.10.	 	Note: At no time will either company hang a tag on the other company’s
device.
	 
	 	5.11.	 	Note: Applying a Hold Card/Red Personal Protective Tag for worker
protection to an outside company does not preclude either company from

 

PROPRIETARY, CONFIDENTIAL OR PRIVILEGED INFORMATION

Verify Current Version Prior to Use — Uncontrolled When Printed

					
	 	 	 	 	 
	Doc. ID: EEI-055
	 	Page 4 of 7
	 	Version # 000

 

 

SWITCHING, TAGGING, AND WORKER PROTECTION AT ITC

MIDWEST TRANSMISSION / IPL DISTRIBUTION INTERFACES

	 	 	 	applying additional Hold Card(s)/Red Personal Protective Tag(s) to the same
device to provide Protection to their own employees.

	6.	 	ATTACHMENTS

	 	6.1.	 	ITC Red Tag
	 
	 	6.2.	 	IPL Hold Card

	7.	 	MISCELLANEOUS

	 	7.1.	 	N/A

	8.	 	APPROVALS

	 	 	 	 	 	 	 
	Owner:

	 	 	 	Date:	 	 
	 
	 	 	 	 
	Approver:

	 	 	 	Date:	 	 

	9.	 	REVISION HISTORY

	 	 	 	 	 	 	 
	 	 	Revision	 	Individual	 	 
	Date	 	Number	 	Making Edits	 	Reason / Comments
	xx/xx/2007
	 	 	 	 	 	 

 

PROPRIETARY, CONFIDENTIAL OR PRIVILEGED INFORMATION

Verify Current Version Prior to Use — Uncontrolled When Printed

					
	 	 	 	 	 
	Version # 000
	 	Page 5 of 7
	 	Doc. ID: EEI-055

 

 

SWITCHING, TAGGING, AND WORKER PROTECTION AT ITC

MIDWEST TRANSMISSION / IPL DISTRIBUTION INTERFACES

ITC System Tags:

ITC Local Tags:

 

PROPRIETARY, CONFIDENTIAL OR PRIVILEGED INFORMATION

Verify Current Version Prior to Use — Uncontrolled When Printed

					
	 	 	 	 	 
	Doc. ID: EEI-055
	 	Page 6 of 7
	 	Version # 000

 

 

SWITCHING, TAGGING, AND WORKER PROTECTION AT ITC

MIDWEST TRANSMISSION / IPL DISTRIBUTION INTERFACES

IPL Tags:

 

PROPRIETARY, CONFIDENTIAL OR PRIVILEGED INFORMATION

Verify Current Version Prior to Use — Uncontrolled When Printed

					
	 	 	 	 	 
	Version # 000
	 	Page 7 of 7
	 	Doc. ID: EEI-055

 

 

Exhibit 4

Local Distribution Company Switching
Procedures

The enclosed Local Distribution Company Switching Procedure is a document that may be modified from
time to time. The version attached is the latest as of the date the Interconnection Agreement was
executed. It is the responsibility of the Transmission Company to confirm with Local Distribution
Company the latest approved version of the procedure.

 

 

	 	 	 	 	 	 	 	 	 
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	1.	 	PURPOSE
	 
	 	 	This practice establishes procedures necessary to:

	 	•	 	Schedule pre-arranged circuit and equipment outages
	 
	 	•	 	Safely de-energize lines and equipment
	 
	 	•	 	Create and maintain safe working conditions once the circuit/equipment has been
de-energized
	 
	 	•	 	Safely re-energize lines and equipment when work has been completed.

This practice supplements safety rule requirements of each pre-merger company. This practice
shall not circumvent requirements of the individual utilities’ safety rules.

	2.	 	GENERAL INFORMATION AND RESPONSIBILITIES

	 	a.	 	The American Transmission Company — System Operations Center (SOC)

	 	1)	 	The SOC is an entity owned and operated by the American Transmission Company and
is
responsible for transmission system switching. Transmission switching requests shall be
made to
and coordinated through the SOC. For the purpose of this practice, Alliant Energy
Corporation
defines transmission as follows:
	 
	 	 	 	Wisconsin: Lines and transformers with a voltage of 34.5 kV or higher.

Iowa, Illinois, and Minnesota: Lines and transformers with a voltage of 69 kV or higher.
	 
	 	2)	 	The SOC shall communicate specific switching instructions directly, or
indirectly through the
appropriate Distribution Dispatch Center (DDC), or to those persons actually
performing the
switching. The SOC shall notify the appropriate DDC of switching being done by the
SOC.
	 
	 	3)	 	The SOC shall keep records of transmission switching. However, if switching is
performed through
the DDC, the DDC shall also keep a record.
	 
	 	4)	 	The SOC is responsible for coordinating scheduling of transmission switching when
Municipals,
Cooperatives, Regional Security Centers (MISO), or other companies/entities are involved.
The SOC
may delegate this responsibility to other entities.
	 
	 	5)	 	The Manager of Transmission System Operations is responsible for approving
submitted “Request
for Clearance” forms, and for final approval of switching sequences. The Manager of
Transmission
System Operations may delegate this responsibility to other qualified personnel.
	 
	 	6)	 	The Manager of Transmission System Operations shall train SOC personnel on this
practice and
subsequent changes.
	 
	 	7)	 	The Manager of Transmission System Operations shall provide this practice to
other entities that
perform transmission switching.

 

 

	 	 	 	 	 	 	 	 	 
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	 	b.	 	Distribution Dispatch Centers (DDC)

	 	1)	 	DDC West Operations — AE IP&L

	 	a)	 	DDC is responsible for directing switching on the Alliant Energy IP&L distribution
systems. The
DDC shall communicate specific switching instructions directly, or indirectly, to
those persons actually performing the switching. The DDC shall notify the SOC of any
switching that may affect the transmission system.
	 
	 	b)	 	The DDC shall keep records of distribution switching and transmission switching they
perform.
	 
	 	c)	 	Pre-arranged distribution outage requests shall be made to and coordinated through the
DDC.
	 
	 	d)	 	The DDC manager or operations manager is responsible for approving submitted
distribution
Request for Clearance forms, and for final approval of switching sequences. The DDC
manager may delegate this work to trained and qualified personnel.
	 
	 	e)	 	The DDC manager shall train DDC personnel on this practice and subsequent changes.

	 
	 	f)	 	DDC is responsible for coordinating scheduling with other companies involved in the
switching.

	 	2)	 	DDC East Operations — AE WP&L

	 	a)	 	The DDC shall notify the SOC of any switching that may affect the transmission system.

	 
	 	b)	 	The DDC shall keep records of distribution switching and transmission switching they
perform.
	 
	 	c)	 	The overhead operations manager is responsible for approving distribution Request for
Clearance
forms, and for final approval of switching sequences. The overhead operations manager
may delegate this work to trained and qualified personnel.
	 
	 	d)	 	The DDC manager shall train DDC personnel on this practice and subsequent changes.

	 	c.	 	Duane Arnold Energy Center (DAEC) Switchyard

	 	1)	 	Exhibit B of the Nuclear Power Plant Operating Service Agreement between Alliant
Energy-IESU and
the Nuclear Management Company (NMC) specifies the scope, responsibilities and
requirements for
coordination and control of access, design, operation and maintenance of the DAEC
switchyard,
associated equipment and transmission lines. It requires that Alliant obtain NMC review
and approval
for any procedure changes, design changes, tests and changes to other activities which
might affect
compliance with DAEC’s operating license or regulatory commitments involving the DAEC’s
switchyard and associated equipment and transmission lines.
	 
	 	2)	 	The DAEC Operations Shift Supervisor (319-851-7266) will act as the initial point
of contact for all
issues regarding coordination and control of DAEC switchyard access, design, operation,
testing and
maintenance.

 

 

	 	 	 	 	 	 	 	 	 
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	 	d.	 	“Held for” Person

	 	1)	 	The “held for” person is the person in whose name the clearance is placed.
Examples of a “held for”
person can include, but are not limited to, Project Managers, Supervisors, System
Operators,
Journeyman Lineman, Substation Electricians, and Dispatchers.
	 
	 	2)	 	The “held for” person shall safely manage protective clearance for those working on the
project.
	 
	 	3)	 	The “held for” person can also be the “responsible” person.

	 	e.	 	Switch person

	 	1)	 	A switch person is a qualified worker involved in the physical switching
or operation of lines and equipment.
	 
	 	2)	 	Personnel involved in the switching process shall know their responsibility
and how it fits with the switching operation.

	 	f.	 	“Responsible” Person

	 	1)	 	The “responsible” person is accountable for the pre-coordination of the project
and has overall
responsibility for the project. Specifically, this involves working with the appropriate
dispatch center
and crews to schedule the project. Examples of a “responsible” person can include, but
are not
limited to, Project Managers, Supervisors, System Operators, Journeyman Lineman,
Substation
Electricians, and Dispatchers.
	 
	 	2)	 	The “responsible person” can also be the “held for” person.

	 	g.	 	Switching Sequences

	 	1)	 	All parties involved shall review the pre-arranged switching sequence. Prior to
switching, all parties
should be provided a copy of the approved “Request for Clearance”.
	 
	 	2)	 	Changes to the switching sequence shall be communicated to those affected by the
change. To
avoid switching errors, changes should be kept to a minimum.
	 
	 	3)	 	In emergencies, switching may be performed without prearranged switching
sequences. All other
procedures shall be followed, (i.e., safety rules, hold cards and caution cards, trained
and qualified
employees, etc.)

	 	h.	 	Communications

	 	1)	 	Switching orders should be communicated with the company radio so everyone in the
area is aware
of switching in progress.
	 
	 	2)	 	To confirm dear understanding, the receiver shall repeat orders and operations.
	 
	 	3)	 	When a device is operated remotely, (from the substation control house, via
supervisory control from
the SOC/DDC, etc..) the person operating the device should notify anyone that could be
startled by

 

 

	 	 	 	 	 	 	 	 	 
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the operation, (i.e. before operating a circuit breaker remotely, verify all people known
to be working near the breaker have been notified.)

	 	i.	 	General Carding Operations

	 	1)	 	Clearances shall not be granted or released on a pre-determined time basis.
	 
	 	2)	 	Hold cards shall be attached such that the device cannot be operated without
removing or seeing the
card. On motor operated switches, the hold card should be placed on the coupler mechanism
lock.
On individually operated three phase switches, the hold card should be attached to the
center blade.
On pole-mounted switches without a mechanical lock, the hold card shall be securely
attached to the
pole/structure in a conspicuous location, and such that it will not be accidentally
displaced.
	 
	 	3)	 	A visible open shall be provided for clearance. An open circuit breaker or
other device without visible
contacts shall not be used as the separation between the work area and the source.

	3.	 	TAGS AND HOLD CARDS
	 
	 	 	Four types of tags are used to protect personnel, lines, and equipment, inhibit Supervisory
Control And Data Acquisition (SCADA) operation, and provide information:

	 	a.	 	Hold Card

	 	1)	 	A hold card is a physical card prohibiting operation of a specific switch, device, valve
or circuit.
	 
	 	2)	 	When a switch or other device is opened for clearance, a hold card shall be
placed to prevent
operation. Placement of the hold card signifies the device/switch shall not be operated
until the “held
for” person has released the clearance and the hold card has been removed.
	 
	 	3)	 	Each Hold Card shall have a pre-printed unique number and include the following
information:

Switch/Device number the card is assigned to

Name of the “held for” person

Name of person opening the switch or verifying the switch is already open

Date and time the switch was opened or verified opened

Clearance/Control job number (optional)

	 	4)	 	If two or more crews are working independently on the same circuit/equipment,
each crew shall have
and place it’s own hold cards.
	 
	 	5)	 	If one person will oversee multiple crews working on the same
circuit/equipment, one set of hold
cards shall be issued in this person’s name.
	 
	 	6)	 	Records of hold card placement shall be kept at the control center issuing the cards.

	 	b.	 	Caution Card

	 	1)	 	A caution card is a physical card placed on a device indicating
information, instruction, or non clearance warnings.

 

 

	 	 	 	 	 	 	 	 	 
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	 	2)	 	Records of caution card placement during switching operations shall be
kept at the appropriate
control center.
	 
	 	3)	 	Caution cards shall be placed on devices/switches where reclosing has been
disabled for “hot line”
work.
	 
	 	4)	 	Caution Cards should be placed where operation of a device may cause damage to
circuits/equipment, interruption of customer service, or other problems. Some examples
include
closing an out of phase point, closing into an overload condition, and closing a
normally open switch.
	 
	 	5)	 	Each Caution Card shall have a pre-printed unique number and shall
include the following
information:

Name of the person placing the card

Reason for placement

Date and time the card was placed

Area for “Remarks”, i.e. information, instruction, non-clearance warning(s), single
shot, held for
person, condition of equipment, etc.

Switch, valve, or equipment number

	 	c.	 	Information Tag

	 	1)	 	An information tag is placed on an Energy Management System (EMS) display. This
tag provides
information to the system operator or distribution dispatcher.
	 
	 	2)	 	Information Tags shall be used where general information for line and
equipment operation or
protection is necessary. Information Tags shall not be used for clearance.

	 	d.	 	Inhibit Tag

	 	1)	 	An inhibit tag is a tag placed on an EMS display associated with a Supervisory
Control and Data
Acquisition (SCADA) controlled device.
	 
	 	2)	 	Inhibit Tags block EMS control. Inhibit tagging should be used to block SCADA
operation of devices
in close proximity to field personnel in order to avoid startling of personnel.
	 
	 	3)	 	Inhibit Tags shall be used as system conditions warrant. An Iinhibit Tag placed
on the EMS system
shall show the reason for inhibit in the tags electronic posting area.
	 
	 	4)	 	When a device is being held open for clearance, and its associated breaker or
switching device can
be remotely controlled via SCADA system, it shall be rendered inoperable. A software
inhibit tag
shall be placed on the SCADA to prevent the associated device from being operated.
Placement of
the inhibit tag shall be recorded on the switching sequence form.

	4.	 	REQUESTING CIRCUIT AND EQUIPMENT OUTAGES

	 	a.	 	(Applies to Transmission Operations and Alliant Energy
IP&L Distribution Operations) —
The “responsible person” shall request, or designate a person to request, switching to the
appropriate control center. The request should be made using the standard Alliant Energy
“Request for Clearance” (form 75-0506) or

 

 

	 	 	 	 	 	 	 	 	 
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	 	 	 	ATC’s “Work Request” form. The control center shall request additional information as
necessary to better understand the work and required clearance.
	 
	 	b.	 	(Applies to Transmission Operations and Alliant Energy
IP&L Distribution Operations) —
Pre-arranged
clearance requests shall be submitted allowing adequate time for evaluation of outages and
system
effects. Except for special circumstances, transmission outage requests received later than
Wednesday
of the week prior to the outage shall not be considered.
	 
	 	c.	 	Where the electrical configuration of the system does not match the switch maps or
where the work will
change the system configuration, a one-line diagram shall be submitted with the clearance
request.
	 
	 	d.	 	Information regarding upcoming major projects should be communicated to the appropriate
control center
as soon as possible.

	5.	 	SCHEDULING CLEARANCES
	 
	 	 	The SOC, DDC or overhead operations manager is responsible for coordinating and finalizing the
job schedule. The overhead operations manager may delegate this work to trained and qualified
personnel. The following shall be completed as necessary:

	 	a.	 	Review the request and secure additional data related to the job.
	 
	 	b.	 	Check for conflicts, including transfer capability impacts for the requested period.
	 
	 	c.	 	Request and perform load flow studies.
	 
	 	d.	 	Notify and coordinate with other entities.
	 
	 	e.	 	Prepare, and/or approve, a step-by-step procedure for de-energization, clearance, and
re-energization of
circuits or equipment. If there is question as to who should prepare the switching sequence,
the “responsible person” and the appropriate control center shall discuss the clearance
needed and determine responsibility for preparing the “Request for Clearance” form. The
SOC, DDC or operations
manager shall prepare sequences requiring system reconfiguration that would not be apparent
to the
requester.
	 
	 	f.	 	The “held for” person shall review and verify accuracy of the prepared switching
sequence. Review
should be completed far enough in advance allowing time for changes/corrections.

	6.	 	SWITCHING OPERATIONS

	 	a.	 	Circuit and Equipment Isolation

	 	1)	 	Switching shall be completed per the safety rules of the respective company.
Switching steps shall
be completed as listed on the approved “Request for Clearance” form. Deviations from the
written
procedure shall be approved the SOC, DDC, or the operations manager and the “held for”
person.
	 
	 	2)	 	Prior to operation, the switchperson shall verify the equipment position
(open/close), and inspect the
equipment for defects and other operating conditions.

 

 

	 	 	 	 	 	 	 	 	 
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	 	3)	 	Oral switching orders shall be given per the approved request for clearance.
Orders shall be read
back, word for word, to avoid misunderstanding.
	 
	 	4)	 	Information recorded on tags shall be legible and complete.
	 
	 	5)	 	Following the operation and placement of a card, the switch person shall inform
the control center with necessary information, information including, but not limited to:

Name or number of device operated.

Time the device was operated.

Pre-printed number of the card placed. 
Name of “held for” person.

Verification of the switch status/position

	 	6)	 	When the control center has determined all steps have been completed, they
shall notify the “held
for” person. The notification shall include card numbers, device(s) on which cards were
placed, time
operated, and the switch person’s name.
	 
	 	7)	 	The “held for” person shall record and read back hold card numbers and
device(s) numbers. When
the “held for” person and the control center operator agree the steps have been completed
with
proper clearance points, the operator shall grant permission to proceed with the work.
	 
	 	8)	 	The control center shall maintain a database of active hold cards and caution
cards. The control
center shall use card numbers to track the status of carding activity.

	 	b.	 	Protective Grounding and Performing Work

	 	1)	 	The “held for” person shall verify proper clearance has been obtained.
	 
	 	2)	 	The “held for” person is responsible for protective grounding. Protective
grounding shall be
completed as required per Electric Operating Practice 104. Placement of grounding
locations shall be recorded on the Switch Sequence Form.
	 
	 	3)	 	The “held for” person shall inform the control center of deviations to the
original work schedule as
they become apparent.

	 	c.	 	Releasing Clearance

	 	1)	 	Prior to the release of clearance, the “held for” person shall confirm that all
workers and equipment
are in the clear and all protective grounds are removed.
	 
	 	2)	 	When releasing clearance, the “held for” person shall identity them self to the
control center operator.
The control center shall verify the identity of the caller. The control center shall not
authorize
clearance release unless assured of the caller identity.
	 
	 	3)	 	Release of clearance shall include:

Hold card and/or caution card numbers.

Device name, number, and/or location associated with each card.

Date and time of clearance release.

 

 

	 	 	 	 	 	 	 	 	 
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	 	 	 	Statement that protective grounds are verified removed and all personnel are in the
clear.
	 
	 	4)	 	The control center shall verify the numbers of the hold or caution cards
released match with the
associated device and “held for” person on record.
	 
	 	5)	 	The control center shall verify no changes have occurred on the system that may
require change in
the planned restoration sequence.

	 	d.	 	Returning Circuits and Equipment to Service

	 	1)	 	Switching to reenergize circuits and equipment shall be completed per the
safety rules of the
respective company. Switching shall be completed as listed on the approved “Request
for
Clearance” form. The SOC, DDC or operations manager, and “held for” person shall
approve
deviations from the written procedure. To avoid switching errors, changes should be
kept to a
minimum.
	 
	 	2)	 	Oral switching orders shall be given per the approved request for clearance.
Orders shall be read
back, word for word, to avoid misunderstanding.
	 
	 	3)	 	Following the completion of the operation ordered, the switch person shall
provide the control center
with necessary information, including, but not limited to:

Name or number of device operated.

Time the device was operated.

Number of the card removed from the device.

Verification of switch status/position.

Name of person operating or verifying switch position.

	 	4)	 	The control center shall verify all steps to return circuits and equipment
to normal operation are
completed.

	 	e.	 	Switching With Other Companies (Utilities, REAs, RECs, Municipals)

	 	1)	 	When switching with other companies, communications regarding switching shall
take place between
the respective control centers. Unless a written switching agreement is in place, Alliant
Energy
control centers shall not give switching orders directly to other company’s field
personnel.
	 
	 	2)	 	If the switching requires Alliant Energy personnel operate and card Alliant
Energy circuits and
equipment in providing necessary clearance for other company work, the appropriate card
shall be
placed and “held for” the other company system operator. Hold and caution card numbers
shall be
passed on to the other company’s control center. It shall be that company’s’
responsibility to keep a
record of the card numbers as a “held for” entity.
	 
	 	3)	 	If the switching requires another company operate and card their circuits and
equipment to provide
Alliant Energy personnel with the clearance to work on Alliant Energy circuits and
equipment, the hold
card(s) on the other company’s circuits and equipment shall be “held for” the Alliant
Energy System
Operator or DDC operator. The Alliant Energy System Operator or DDC operator shall relay
hold
card numbers to the “held for” person responsible for the overall job clearance.

 

 

	 	 	 	 	 	 	 	 	 
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	 	f.	 	Switching in Generating Station Switchyards

	 	1)	 	Alliant Energy shall train generating station personnel who perform
generating station substation switching. Generating station operating personnel shall
maintain the experience of routine switching operations. Plant personnel who perform
switching shall switch at least once a year to be considered qualified.

	 	g.	 	Transferring Clearance

	 	1)	 	If the “held for” person is not able to remain in charge of the work site,
cards shall be transferred to
another individual. The individual accepting responsibility shall have complete knowledge
of the job.
This knowledge includes, but is not limited to, crew locations, the work being done by
each crew,
card locations with their associated numbers, and protective ground locations. The
original “held for”
person shall properly transfer clearances and all associated information to the new “held
for” person.
	 
	 	2)	 	The person giving up clearance shall notify the control center of transfer. The
control center shall
amend the control center records for each affected card, showing the original “held for”
person and
the new “held for” person. The control center shall record the time and date
responsibility changed.
All cards shall remain in place.

	 	h.	 	Transfer of Clearance to a Control Center

	 	1)	 	In some emergency situations, it may be beneficial to transfer clearance
to a system operator or
dispatcher.
	 
	 	2)	 	Work shall not be performed on circuits and equipment if the control center is the “held
for” person.
	 
	 	3)	 	If protective grounds are left in place, the transfer of clearance shall be kept to a
minimum.

	 	a)	 	Transmission Operations — The Manager of Transmission Operations shall
approve transfer of clearance. If approved, the person transferring clearance shall
provide a record detailing protective ground locations. The system operator shall
record the location of the protective grounds on the EMS control inhibit window at
each energization point.

	 	i.	 	Release of Clearance by Other Parties

	 	1)	 	Every attempt shall be made to locate the “held for” person prior to
pursuing the release of the
clearance by another party.
	 
	 	2)	 	In the extreme event a release of clearance Is required and the “held for” person
is not available, the
manager directly responsible for the “held for” person’s department shall release the
hold
cards/caution cards. The manager shall understand why the clearance was provided and
ensure that
it is safe to release the clearance. In the event of such an incident, appropriate
documentation of
attempts to contact the “held for” person shall be forwarded for review to the
appropriate general
manager and Safety & Health Services.

	 	j.	 	Clearance Review

	 	1)	 	The Intent of clearance review is identification and correction of problems
to prevent future problems. In order to verify proper carding, and switching
procedures are being followed, the “held

 

 

	 	 	 	 	 	 	 	 	 
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	 	204
	 
	Issued

	 	8-28-03	 	 	Issued
	 	8-28-03
	 
	Page

	 	10	 	 	Page
	 	10

ELECTRIC TRANSMISSION AND DISTRIBUTION SWITCHING AND HOLD CARD PROCEDURES

	 	 	 	for” person or “responsible” person may request collection of all cards and documentation
associated with a switching job. The request shall be made immediately after the job
completion to insure all materials are available. If a review is requested, all
control center documentation shall be copied and forwarded to the requesting party. The
associated switch persons shall be notified to send specific cards.
	 
	 	2)	 	If problems occur with switching related to these procedures, an automatic
review of all Hold Cards, Caution Cards, and applicable control center records shall be
performed. Either the “responsible person” or the appropriate control center manager
may complete this review. (These problems include, but are not limited to, the
operation of the wrong device, operation of a device out of sequence, missing or
incorrect hold card numbers when releasing clearance, switching errors that result in
an interruption of service to customers.)

(END)

 

 

Exhibit 5

[Reserved]

 

 

Exhibit 6

[Reserved]

 

 

Exhibit 7

Form of Easement

The Form of Easement to be used is dependent on the ownership of the substation. The forms as
listed below will be utilized when appropriate:

	7.1	 	Substation Site Easement Agreement (Primarily Transmission with Generation)
	 
	7.2	 	Electric Line Easement Agreement (Primarily Transmission with Generation)
	 
	7.3	 	Substation Site Easement Agreement (Primarily Distribution Substation)
	 
	7.4	 	Substation Site Easement Agreement (Primarily Transmission Substation)

As noted in Article 9.2 of this agreement, attached to Exhibit 7 are the Schedules of Easement
Agreements. These Schedules may be updated from time to time as modifications are made.

 

 

	 	 	 
	Prepared By:

	 	Interstate Power and Light Company — PO Box 351 — Cedar Rapids, IA 52406-9949 (319)786-          
	Return To:

	 	Interstate Power and Light Company — PO Box 351 — Cedar Rapids, IA 52406-9949 (319)786-          
	 
	 

	 	SPACE ABOVE THIS LINE FOR RECORDER

SUBSTATION SITE EASEMENT AGREEMENT
(Primarily Transmission with Generation)

     For and in consideration of the sum of One Dollar ($1.00) and other valuable consideration, the
receipt of which is hereby acknowledged, INTERSTATE POWER AND LIGHT COMPANY, an Iowa
corporation, P.O. Box 351, Cedar Rapids, IA 52406-0351 (“Grantor”), does hereby warrant and convey
unto ITC MIDWEST LLC, a Michigan limited liability company, 39500 Orchard Hill Place, Suite 200,
Novi, Ml 48375, its successor and assigns, (“Grantee”), a perpetual easement with the right, privilege
and authority to construct, reconstruct, maintain, operate, repair, patrol and remove its facilities located
within an electric substation consisting of poles, towers, crossarms, insulators, wires, guy wires,
anchors, switches, transformers, capacitors, fences and other equipment (also known as,
“Transmission Facilities”) necessary for the transformation, switching and transmission of electricity and
all Corporate purposes together with the power to extend to any other party the right to use, jointly with
the Grantee, pursuant to the provisions hereof, upon, under, over and across the following described
lands located in the County of                     , and the State of Iowa:

See Legal Description at attached Exhibit A

together with all the rights and privileges for the
full enjoyment or use thereof for the aforesaid purpose.

Said easement is confined to an area approximately
                    
feet, which is limited to the now existing substation site as generally shown in red on the attached Exhibit B, which by this reference is
made a part hereof. Grantor reserves the right to conduct a future survey, at its sole expense, to
more narrowly and specifically define the substation facility. The purpose of this future survey is
to restrict the Grantee’s access and use to the actual and future transmission facilities as
reasonably contemplated therein and to remove the blanket easement over Grantor’s entire Generation
facility so that property is not unnecessarily encumbered. At such time Grantor completes this
survey, this Easement Agreement will be terminated upon the agreement of the parties and the
parties will execute a new Easement Agreement covering only the agreed-upon easement area.

It is agreed and understood that following the effective date of this Easement Agreement that both
Grantor and Grantee will have facilities located upon the above described real property and within
the substation. Grantor and Grantee shall work together and cooperate fully to allow each other
access to and use of their respective facilities. Grantee shall be solely responsible for
maintenance and repair of all Transmission Facilities located on, under, over or within the
Easement and Grantor shall be solely responsible for maintenance and repair of ail of its poles,
towers, crossarms, insulators, wires, guy wires, anchors, switches, transformers, capacitors,
fences and other equipment, necessary for the transformation, switching, distribution and
generation of electricity (“Distribution and Generation Facilities”) located on, under, over or
within the Easement.

Grantor and Grantee agree that they will not construct or place any buildings, structures, plants,
or other obstruction on the property described above.

Grantor retains the right and privilege to trim, cut down or control the growth of any trees or
other vegetation on said described land and such other trees and vegetation adjacent thereto as in
the judgment of the Grantor or Grantee may interfere with construction, reconstruction,
maintenance, operation, repair, use of, or which in falling might touch the said substation, or
equipment appurtenant thereto.

 

 

The Grantee, its contractor or agent, may enter said premises for the purpose of making surveys
and preliminary estimates immediately upon the execution of this Easement Agreement.

The Grantor also grants to the Grantee the right of ingress and egress to said substation,
over/under lands now owned by the Grantor, for the purpose of constructing, reconstructing,
maintaining, operating, patrolling, repairing and removing Transmission Facilities, and the Grantee
agrees to pay to the Grantor or its tenants all damages done to the lands (except the cutting and
trimming of trees or other vegetation), fences, livestock or crops of the Grantor or its tenants,
by the Grantee or its employees while constructing, reconstructing, patrolling or repairing said
substation, or equipment appurtenant thereto.

 

 

IN WITNESS WHEREOF, Grantor and Grantee have caused this Agreement
to be effective as of the _____
day of December, 2007 to be effective as of 12:01 a.m. on this day.

Signed this                      day of December, 2007.

	 	 	 	 	 	 	 
	 	 	INTERSTATE POWER AND LIGHT COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Thomas L. Aller, President (GRANTOR)	 	 
	 
	 	 	 	 	 	 
	 	 	ITC MIDWEST LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Joseph L. Welch, President and Chief
Executive Officer (GRANTEE)	 	 

	 	 	 	 	 	 	 	 	 
	ALL PURPOSE ACKNOWLEDGMENT	 	 	 	 	 	CAPACITY CLAIMED BY SIGNER
	 
	 	 	 	 	 	 	 	 
	STATE OF IOWA             
           )	 	 	 	o	 	INDIVIDUAL
	COUNTY OF LINN    
                 )
ss:	 	 	 	þ	 	CORPORATE
Title(s) of Corporate Officers(s):
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	On this              day of December, AD. 2007, before me,
the undersigned, a Notary Public in and for said State,
personally appeared	 	 	 	o

þ
o	 	N/A 

Corporate Seal is affixed
No Corporate Seal procured
	 
	 	 	 	 	 	 	 	 
	Thomas L. Aller
	 	 	 	o	 	PARTNER(s)
	 
	 	 	 	o	 	Limited Partnership
	 

	 	 	 	 	 	o
	 	General Partnership
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	ATTORNEY-IN-FACT
	 
	 	 	 	o	 	EXECUTOR(s),
	 

	 	 	 	 	 	o
	 	ADMINISTRATOR(s),
	þ

	 	to me personally known
	 	 	 	o
	 	or TRUSTEE(s):
	 

	 	 	 	 	 	o
	 	GUARDIAN(s)
	     or          o

	 	 provided to me on the basis of satisfactory 
evidence
	 	 	 	o

o
	 	or CONSERVATOR(s) 

OTHER
	 
	 	 	 	 	 	 	 	 
	to be the persons(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that
by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted,
executed the instrument.	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 	 	 	SIGNER IS
REPRESENTING:
	 	 	 	 	 	 	List name(s)of persons(s) or entity(ies):
	 	 	 	 	 	 	Interstate Power and Light Company                     
	NOTARY SEAL	 
	 	 	 	 
	 

	 	            (Sign in Ink)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
(Print/type name)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Notary Public in and for the State of Iowa                     	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 
	ALL PURPOSE ACKNOWLEDGMENT	 	 	 	 	 	CAPACITY CLAIMED BY SIGNER
	 
	 	 	 	 	 	 	 	 
	STATE OF                          )	 	 	 	o	 	INDIVIDUAL
	COUNTY OF  
                   )
ss:	 	 	 	o	 	CORPORATE
Title(s) of Corporate Officers(s):
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	On this          day of December, AD. 2007, before me,
the undersigned, a Notary Public in and for said State,
personally appeared	 	 	 	o

o
o	 	N/A 

Corporate Seal is affixed
No Corporate Seal procured
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	o	 	PARTNER(s)
	 
	 	 	 	o	 	Limited Partnership
	 

	 	 	 	 	 	o
	 	General Partnership
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	ATTORNEY-IN-FACT
	 
	 	 	 	o	 	EXECUTOR(s),
	 

	 	 	 	 	 	o
	 	ADMINISTRATOR(s),
	o

	 	to me personally known
	 	 	 	o
	 	or TRUSTEE(s):
	 

	 	 	 	 	 	o
	 	GUARDIAN(s)
	     or          o

	 	 provided to me on the basis of satisfactory 
evidence
	 	 	 	o

o
	 	or CONSERVATOR(s) 

OTHER
	 
	 	 	 	 	 	 	 	 
	to be the persons(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that
by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted,
executed the instrument.	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 	 	 	SIGNER IS
REPRESENTING:
	 	 	 	 	 	 	List name(s) of persons(s) or entity(ies):
	 	 	 	 	 	 	 
	NOTARY SEAL	 
	 	 	 	 
	 

	 	            (Sign in Ink)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
(Print/type name)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Notary Public in and for the State of                     
                    	 	 	 	 	 	 

 

	 	 	 
	Prepared By:

	 	Interstate Power and Light Company
— PO Box 351 — Cedar Rapids, IA 52406-9949 (319)786-          
	Return To:

	 	Interstate Power and Light Company
— PO Box 351 — Cedar Rapids, IA 52406-9949 (319)786-          
	 
	 

	 	SPACE ABOVE THIS LINE FOR RECORDER

ELECTRIC
LINE EASEMENT AGREEMENT

(Primarily Transmission with Generation)

     For and in
consideration of the sum of One Dollar ($1.00) and other valuable consideration, the
receipt of which is hereby acknowledged, INTERSTATE POWER AND LIGHT COMPANY, an Iowa
corporation, P.O. Box 351, Cedar Rapids, IA 52406-0351 (“Grantor”), does hereby warrant and convey
unto ITC MIDWEST LLC, a Michigan limited liability company, 39500 Orchard Hill Place, Suite 200,
Novi, MI 48375, its successor and assigns, (“Grantee”), subject to exceptions and reservations
hereinafter set forth, a perpetual easement with the right, privilege and authority to construct,
reconstruct, maintain, operate, repair, patrol and remove an electric line or lines, consisting of poles,
towers, cross arms, insulators, wires, guy wires, anchors and other necessary fixtures, equipment and
construction for transmitting electricity (the “Transmission Facilities”) pursuant to the provisions hereof,
over and across the following described lands located in the County of                      and the State of

See Legal Description at attached Exhibit A

together
with all the rights and privileges for the full enjoyment or use thereof for the aforesaid purpose.

Said easement is limited to a                      foot strip of land which is                      feet either side of centerline of
the now existing electric transmission line generally shown in red on the attached Exhibit B, which
by this reference is made a part hereof, and the area occupied by the necessary down guys and
anchors at line corners and angle structures on the line described. Grantor reserves the right to
conduct a future survey, at its sole expense, to more narrowly and specifically define the electric
transmission line corridor. The purpose of this future survey is to restrict the Grantee’s access
and use to the actual and future transmission facilities as reasonably contemplated therein and to
remove the blanket easement over Grantor’s entire Generation facility so that property is not
unnecessarily encumbered. At such time Grantor completes this survey, this Easement Agreement will
be terminated upon the agreement of the parties and the parties will execute a new Easement
Agreement covering only the agreed-upon defined easement area.

Grantor agrees that it will not construct or place any buildings, structures, plants, or other
obstructions on the property described above..

Grantor also conveys the right and privilege to trim, cut down or control the growth of any trees
or other vegetation on said described land and such other trees and vegetation adjacent thereto as
in the judgment of the Grantee may interfere with construction, reconstruction, maintenance,
operation, repair, use of, or which in falling might touch energized facilities.

Grantee, its contractor or agent, may enter said premises for the purpose of making surveys and
preliminary estimates immediately upon the execution of this Easement Agreement.

Grantor also grants to the Grantee the right of ingress and egress to said line or lines,
over/under lands now owned by the Grantor, for the purpose of constructing, reconstructing,
maintaining, operating, patrolling, repairing and removing said line or lines, and the Grantee
agrees to pay to the Grantor or its tenants all damages done to the lands (except the cutting and
trimming of trees or other vegetation), fences, livestock or crops of the Grantor or its tenants,
by the Grantee or its employees while constructing, reconstructing, patrolling or repairing said
Transmission Facilities.

In the event Grantor should require relocation of the Transmission Facilities upon the Grantor’s
lands for any reason, Grantor shall give reasonable notice thereof to Grantee who shall relocate
such line or lines to a new area or areas on lands owned by the Grantor as designated by the
Grantor. Such relocation shall be at the expense of the Grantor.

 

 

     IN WITNESS WHEREOF, Grantor and Grantee have caused this Agreement to be effective as
of the          day of December, 2007, to be effective as of 12:01 a.m. on this day.

Signed this                      day of December, 2007.

	 	 	 	 	 	 	 
	 	 	INTERSTATE POWER AND LIGHT COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Thomas L. Aller, President (GRANTOR)
	 	 
	 
	 	 	 	 	 	 
	 	 	ITC MIDWEST LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Joseph L. Welch, President and Chief
Executive Officer (GRANTEE)	 	 

	 	 	 	 	 	 	 	 	 
	ALL PURPOSE ACKNOWLEDGMENT	 	 	 	 	 	CAPACITY CLAIMED BY SIGNER
	 
	 	 	 	 	 	 	 	 
	STATE OF IOWA
      )	 	 	 	o	 	INDIVIDUAL
	COUNTY OF LINN     ) ss:	 	 	 	þ	 	CORPORATE
Title(s) of Corporate Officers(s):
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	President 

	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

	On this          day of December, AD. 2007, before me,
the undersigned, a Notary Public in and for said State, personally appeared	 	 	 	o

þ
o	 	N/A 

Corporate Seal is affixed
No Corporate Seal procured
	 
	 	 	 	 	 	 	 	 
	Thomas L. Aller
	 	 	 	o	 	PARTNER(s)
	 
	 	 	 	o	 	Limited Partnership
	 

	 	 	 	 	 	o
	 	General Partnership
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	ATTORNEY-IN-FACT
	 
	 	 	 	o	 	EXECUTOR(s),
	 

	 	 	 	 	 	o
	 	ADMINISTRATOR(s),
	þ

	 	to me personally known
	 	 	 	o
	 	or TRUSTEE(s):
	 

	 	 	 	 	 	o
	 	GUARDIAN(s)
	     or          o

	 	 provided to me on the basis of satisfactory 
evidence
	 	 	 	o

o
	 	or CONSERVATOR(s) 

OTHER
	 
	 	 	 	 	 	 	 	 
	to be the persons(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that
by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted,
executed the instrument.	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 	 	 	SIGNER IS
REPRESENTING:
	 	 	 	 	 	 	List name(s) of persons(s) or entity(ies):
	 	 	 	 	 	 	Interstate Power and Light Company                     
	NOTARY SEAL	 
	 	 	 	 
	 
	 	                 (Sign in Ink)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
(Print/type name)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Notary Public in and for the State of Iowa
                                               	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 
	ALL PURPOSE ACKNOWLEDGMENT	 	 	 	 	 	CAPACITY CLAIMED BY SIGNER
	 
	 	 	 	 	 	 	 	 
	STATE OF                          )	 	 	 	o	 	INDIVIDUAL
	COUNTY OF
                    ) ss:	 	 	 	o	 	CORPORATE
Title(s) of Corporate Officers(s):
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	President 

	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	On this          day of December, AD. 2007, before me,
the undersigned, a Notary Public in and for said State,
personally appeared	 	 	 	o

o
o	 	N/A 

Corporate Seal is affixed
No Corporate Seal procured
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	o	 	PARTNER(s)
	 
	 	 	 	o	 	Limited Partnership
	 

	 	 	 	 	 	o
	 	General Partnership
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	ATTORNEY-IN-FACT
	 
	 	 	 	o	 	EXECUTOR(s),
	 

	 	 	 	 	 	o
	 	ADMINISTRATOR(s),
	o

	 	to me personally known
	 	 	 	o
	 	or TRUSTEE(s):
	 

	 	 	 	 	 	o
	 	GUARDIAN(s)
	     or          o

	 	 provided to me on the basis of satisfactory 
evidence
	 	 	 	o

o
	 	or CONSERVATOR(s) 

OTHER
	 
	 	 	 	 	 	 	 	 
	to be the persons(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that
by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted,
executed the instrument.	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 	 	 	SIGNER IS
REPRESENTING:
	 	 	 	 	 	 	List name(s) of persons(s) or entity(ies):
	 	 	 	 	 	 	 

	NOTARY SEAL	 
	 	 	 	 

	 

	 	               (Sign in Ink)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
(Print/type name)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Notary Public in and for the State of                     
                    	 	 	 	 	 	 

 

	 	 	 
	Prepared By:
	 	Interstate Power and Light Company — PO Box 351 — Cedar Rapids, IA 52406-9949 (319)786-          
	Return To:
	 	Interstate Power and Light Company — PO Box 351 — Cedar Rapids, IA 52406-9949 (319)786-          
	 
	 
	 	SPACE ABOVE THIS LINE FOR RECORDER

SUBSTATION SITE EASEMENT AGREEMENT
(Primarily Distribution)

     For and in consideration of the sum of One Dollar ($1.00) and other valuable consideration, the
receipt of which is hereby acknowledged, INTERSTATE POWER AND LIGHT COMPANY, an Iowa
corporation, P.O. Box 351, Cedar Rapids, IA 52406-0351 (“Grantor”), does hereby warrant and convey
unto ITC MIDWEST LLC, a Michigan limited liability company, 39500 Orchard Hill Place, Suite 200,
Novi, MI 48375, its successor and assigns, (“Grantee”), a perpetual easement with the right, privilege
and authority to construct, reconstruct, maintain, operate, repair, patrol and remove its facilities located
within an electric substation consisting of poles, towers, crossarms, insulators, wires, guy wires,
anchors, switches, transformers, capacitors, fences and other equipment (also known as,
“Transmission Facilities”) necessary for the transformation, switching and transmission of electricity and
all Corporate purposes together with the power to extend to any other party the right to use, jointly with
the Grantee, pursuant to the provisions hereof, upon, under, over and across the following described
lands located in the County of                     , and the State of Iowa:

See Legal Description at attached Exhibit A

together with all the rights and privileges for the full enjoyment or use thereof for the aforesaid
purpose.

It is agreed and understood that following the effective date of this Easement Agreement that both
Grantor and Grantee will have facilities located upon the above described real property and within
the substation. Grantor and Grantee shall work together and cooperate fully to allow each other
access to and use of their respective facilities. Grantee shall be solely responsible for
maintenance and repair of all Transmission Facilities located on, under, over or within the
Easement and Grantor shall be solely responsible for maintenance and
repair of all of its poles,
towers, crossarms, insulators, wires, guy wires, anchors, switches, transformers, capacitors,
fences and other equipment, necessary for the transformation, switching and distribution of
electricity (“Distribution Facilities”) located on, under, over or within the Easement.

Grantor and Grantee agree that they will not construct or place any buildings, structures, plants,
or other obstruction on the property described above.

Grantor retains the right and privilege to trim, cut down or control the growth of any trees or
other vegetation on said described land and such other trees and vegetation adjacent thereto as in
the judgment of the Grantor or Grantee may interfere with construction, reconstruction,
maintenance, operation, repair, use of, or which in falling might touch the said substation, or
equipment appurtenant thereto.

The Grantee, its contractor or agent, may enter said premises for the purpose of making surveys
and preliminary estimates immediately upon the execution of this Easement Agreement.

The Grantor also grants to the Grantee the right of ingress and egress to said substation,
over/under lands now owned by the Grantor, for the purpose of constructing, reconstructing,
maintaining, operating, patrolling, repairing and removing Transmission Facilities, and the Grantee
agrees to pay to the Grantor or its tenants all damages done to the lands (except the cutting and
trimming of trees or other vegetation), fences, livestock or crops of the Grantor or its tenants,
by the Grantee or its employees while constructing, reconstructing, patrolling or repairing said
substation, or equipment appurtenant thereto.

 

 

     IN WITNESS WHEREOF,
Grantor and Grantee have caused this Agreement to be effective as of the          
day of December, 2007 to be effective as of 12:01 a.m. on this day.

Signed this                      day of December, 2007.

	 	 	 	 	 	 	 
	 	 	INTERSTATE POWER AND LIGHT COMPANY	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	Thomas L. Aller, President (GRANTOR)	 	 
	 
	 	 	 	 	 	 
	 	 	ITC MIDWEST LLC	 	 
	 
	 	 	 	 	 	 
	 
	 	BY:	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Joseph L. Welch, President and Chief 
Executive Officer (GRANTEE)	 	 

	 	 	 	 	 	 	 	 	 
	ALL PURPOSE ACKNOWLEDGMENT	 	 	 	 	 	CAPACITY CLAIMED BY SIGNER
	 
	 	 	 	 	 	 	 	 
	STATE OF IOWA            )	 	 	 	o	 	INDIVIDUAL
	COUNTY OF LINN
        ) ss:	 	 	 	þ	 	CORPORATE
Title(s) of Corporate Officers(s):
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	President 

	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

	On this
         day of December, AD. 2007, before me,
the undersigned, a Notary Public in and for said State, personally appeared	 	 	 	o
þ
o	 	N/A 
Corporate Seal is affixed
No Corporate Seal procured
	 
	 	 	 	 	 	 	 	 
	Thomas L. Aller
	 	 	 	o	 	PARTNER(s)
	 
	 	 	 	o	 	Limited Partnership
	 

	 	 	 	 	 	o
	 	General Partnership
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	ATTORNEY-IN-FACT
	 
	 	 	 	o	 	EXECUTOR(s),
	 

	 	 	 	 	 	o
	 	ADMINISTRATOR(s),
	þ
	 	to me personally known
	 	 	 	o
	 	or TRUSTEE(s):
	 
	 	 	 	 	 	o	 	GUARDIAN(s)
	     or          o

	 	 provided to me on the basis of satisfactory 
evidence	 	 	 	o
o	 	or CONSERVATOR(s) 
OTHER
	 
	 	 	 	 	 	 	 	 
	to be the persons(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that
by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 	 	 	SIGNER IS
REPRESENTING:
	 	 	 	 	 	 	List name(s)of persons(s) or entity(ies):
	 	 	 	 	 	 	Interstate Power and Light Company                        
	NOTARY SEAL	 
	 	 	 	 
	 
	 	            (Sign in Ink)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
(Print/type name)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Notary Public in and
for the State of Iowa                                   	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 
	ALL PURPOSE ACKNOWLEDGMENT	 	 	 	 	 	CAPACITY CLAIMED BY SIGNER
	 
	 	 	 	 	 	 	 	 
	STATE OF                            )	 	 	 	o	 	INDIVIDUAL
	COUNTY OF
                    ) ss:	 	 	 	o	 	CORPORATE
Title(s) of Corporate Officers(s):
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

	On this          day of December, AD. 2007, before me,
the undersigned, a Notary Public in and for said State, personally appeared	 	 	 	o
o
o	 	N/A 
Corporate Seal is affixed
No Corporate Seal procured
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	o	 	PARTNER(s)
	 
	 	 	 	o	 	Limited Partnership
	 
	 	 	 	 	 	o
	 	General Partnership
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	ATTORNEY-IN-FACT
	 
	 	 	 	o	 	EXECUTOR(s),
	 

	 	 	 	 	 	o
	 	ADMINISTRATOR(s),
	o
	 	to me personally known
	 	 	 	o	 	or TRUSTEE(s):
	 
	 	 	 	 	 	o
	 	GUARDIAN(s)
	     or          o

	 	 provided to me on the basis of satisfactory 
evidence	 	 	 	o
o	 	or CONSERVATOR(s) 

OTHER
	 
	 	 	 	 	 	 	 	 
	to be the persons(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that
by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 	 	 	SIGNER IS
REPRESENTING:
	 	 	 	 	 	 	List name(s)of persons(s) or entity(ies):
	 	 	 	 	 	 	 
	NOTARY SEAL	 
	 	 	 	 
	 
	 	            (Sign in Ink)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
(Print/type name)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Notary Public in and for the State of                     
                    	 	 	 	 	 	 

 

	 	 	 
	Prepared By:

	 	Interstate Power and Light Company — PO Box 351 — Cedar Rapids, IA 52406-9949 (319)786-          
	Return To:

	 	Interstate Power and Light Company — PO Box 351 — Cedar Rapids, IA 52406-9949 (319)786-          
	 
	 

	 	SPACE ABOVE THIS LINE FOR RECORDER

SUBSTATION SITE EASEMENT AGREEMENT
(Primarily Transmission)

     For and in consideration of the sum of One Dollar ($1.00) and other valuable consideration,
the receipt of which is hereby acknowledged, ITC MIDWEST LLC, (“Grantor”), a Michigan limited
liability company, 39500 Orchard Hill Place, Suite 200, Novi, MI 48375, does hereby warrant and convey
unto INTERSTATE POWER AND LIGHT COMPANY, an Iowa corporation, its successor and assigns,
(“Grantee”), P.O. Box 351, Cedar Rapids, IA 52406-0351, a perpetual easement with the right,
privilege and authority to construct, reconstruct, maintain, operate, repair, patrol and
remove its facilities located within an electric substation consisting of poles, towers, crossarms,
insulators, wires, guy wires, anchors, switches, transformers, capacitors, fences and other equipment also Known
as, (“Distribution Facilities”) necessary for the transformation, switching and distribution of
electricity and all Corporate purposes together with the power to extend to any other party the right to use, jointly with the
Grantee, pursuant to the provisions hereof, upon, under, over and across the following described lands
located in the County of                     , and the State of Iowa:

See Legal Description at attached Exhibit A

together with all the rights and privileges for the full enjoyment or use thereof for the aforesaid
purpose.

it is agreed and understood that following the effective date of this Easement Agreement that both
Grantor and Grantee will have facilities located upon the above described real property and within
the substation. Grantor and Grantee shall work together and cooperate fully to allow each other
access to and use of their respective facilities. Grantee shall be solely responsible for
maintenance and repair of all Distribution Facilities located on, under, over or within the
Easement and Grantor shall be solely responsible for maintenance and repair of all of its poles,
towers, crossarms, insulators, wires, guy wires, anchors, switches, transformers, capacitors,
fences and other equipment, necessary for the transformation, switching and transmission of
electricity (“Transmission Facilities”) located on, under, over or within the Easement.

Grantor and Grantee agree that they will not construct or place any buildings, structures, plants,
or other obstruction on the property described above.

Grantor retains the right and privilege to trim, cut down or control the growth of any trees or
other vegetation on said described land and such other trees and vegetation adjacent thereto as in
the judgment of the Grantor or Grantee may interfere with construction, reconstruction,
maintenance, operation, repair, use of, or which in falling might touch the said substation, or
equipment appurtenant thereto.

The Grantee, its contractor or agent, may enter said premises for the purpose of making surveys
and preliminary estimates immediately upon the execution of this Easement Agreement.

The Grantor also grants to the Grantee the right of ingress and egress to said substation,
over/under lands now owned by the Grantor, for the purpose of constructing, reconstructing,
maintaining, operating, patrolling, repairing and removing Transmission Facilities, and the Grantee
agrees to pay to the Grantor or its tenants all damages done to the lands (except the cutting and
trimming of trees or other vegetation), fences, livestock or crops of the Grantor or its tenants,
by the Grantee or its employees while constructing, reconstructing, patrolling or repairing said
substation, or equipment appurtenant thereto.

 

     IN WITNESS WHEREOF, Grantor and Grantee
have caused this Agreement to be effective as of the          
day of December, 2007 to be effective as of 12:01 a.m. on this day.

Signed this                      day of December, 2007.

	 	 	 	 	 	 	 
	 	 	ITC MIDWEST LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Joseph L. Welch, President and
Chief 
Executive Officer (GRANTOR	 	 
	 
	 	 	INTERSTATE POWER AND LIGHT COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Thomas L. Aller, President (GRANTEE)	 	 
	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	ALL PURPOSE ACKNOWLEDGMENT	 	 	 	 	 	CAPACITY CLAIMED BY SIGNER
	 
	 	 	 	 	 	 	 	 
	STATE OF IOWA        )	 	 	 	o	 	INDIVIDUAL
	COUNTY OF LINN
     ) ss:	 	 	 	þ	 	CORPORATE
Title(s) of Corporate Officers(s):
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	President 

	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	On this       day of December, AD. 2007, before me,
the undersigned, a Notary Public in and for said State, personally appeared	 	 	 	o
þ
o	 	N/A 
Corporate Seal is affixed
No Corporate Seal procured
	 
	 	 	 	 	 	 	 	 
	Thomas L. Aller
	 	 	 	o	 	PARTNER(s)
	 
	 	 	 	o	 	Limited Partnership
	 

	 	 	 	 	 	o
	 	General Partnership
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	ATTORNEY-IN-FACT
	 
	 	 	 	o	 	EXECUTOR(s),
	 

	 	 	 	 	 	o
	 	ADMINISTRATOR(s),
	þ

	 	to me personally known
	 	 	 	o
	 	or TRUSTEE(s):
	 

	 	 	 	 	 	o
	 	GUARDIAN(s)
	     or          o

	 	 provided to me on the basis of satisfactory 
evidence
	 	 	 	o

o
	 	or CONSERVATOR(s) 

OTHER
	 
	 	 	 	 	 	 	 	 
	to be the persons(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that
by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted,
executed the instrument.	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 	 	 	SIGNER IS
REPRESENTING:
	 	 	 	 	 	 	List name(s) of persons(s) or entity(ies):
	 	 	 	 	 	 	Interstate Power and Light Company 
	NOTARY SEAL	 
	 	 	 	 
	 

	 	             (Sign in Ink)	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
(Print/type name)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Notary Public in and for the State of Iowa                     	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 
	ALL PURPOSE ACKNOWLEDGMENT	 	 	 	 	 	CAPACITY CLAIMED BY SIGNER
	 
	 	 	 	 	 	 	 	 
	STATE OF                     )	 	 	 	o	 	INDIVIDUAL
	COUNTY OF
                    ) ss:	 	 	 	o	 	CORPORATE
Title(s) of Corporate Officers(s):
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	On this       day of                     , AD. 20     , before me,
the undersigned, a Notary Public in and for said State,
personally appeared	 	 	 	o
o
o	 	N/A 

Corporate Seal is affixed
No Corporate Seal procured
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	o	 	PARTNER(s)
	 
	 	 	 	o	 	Limited Partnership
	 

	 	 	 	 	 	o
	 	General Partnership
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	ATTORNEY-IN-FACT
	 
	 	 	 	o	 	EXECUTOR(s),
	 

	 	 	 	 	 	o
	 	ADMINISTRATOR(s),
	o

	 	to me personally known
	 	 	 	o
	 	or TRUSTEE(s):
	 

	 	 	 	 	 	o
	 	GUARDIAN(s)
	     or          o

	 	 provided to me on the basis of satisfactory 
evidence
	 	 	 	o

o
	 	or CONSERVATOR(s) 

OTHER
	 
	 	 	 	 	 	 	 	 
	to be the persons(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that
by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted,
executed the instrument.	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 	 	 	SIGNER IS
REPRESENTING:
	 	 	 	 	 	 	List name(s) of persons(s) or entity(ies):
	 	 	 	 	 	 	 
	NOTARY SEAL	 
	 	 	 	 
	 

	 	            (Sign in Ink)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
(Print/type name)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Notary Public in and for the State of                     
                    	 	 	 	 	 	 

 

Exhibit 7, Schedule 1

Schedule of Easements

Exhibit 7, Schedule 7.1- Joint Use Transmission Site Real Property — PT w/G

Exhibit 7, Schedule 7.2 — Joint Use Transmission Line Real Property — PT w/G

Exhibit 7, Schedule 7.3 — Joint Use Transmission Real Property — PD

Exhibit 7, Schedule 7.4 — Transmission Fee Interests — PT

 

EXHIBIT 7, SCHEDULE 7.1 — JOINT USE TRANSMISSION SITE REAL PROPERTY

PRIMARILY TRANSMISSION WITH GENERATION SUBSTATIONS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Property	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Interest	 	T/PT	 	Code	 	County	 	City	 	Section	 	TWP	 	Range	 	Common Name	 	Legal Description	 	IPL File Number
	Easement
	 	PT	 	10000	 	Wapello	 	Chillicothe	 	23	 	73N	 	15W	 	OGS Substations	 	Government Lot 7	 	90-1
90-10
	Easement
	 	PT	 	10000	 	Wapello	 	Chillicothe	 	25	 	73N	 	15W	 	OGS Substations	 	SW 1/4 SW 1/4, SE 1/4 SW 1/4	 	90-1
 90-10
	Easement
	 	PT	 	10000	 	Wapello	 	Chillicothe	 	26	 	73N	 	15W	 	OGS Substations	 	E 1/2 NW 1/4, SW 1/4	 	90-1
90-10
	Easement
	 	PT	 	10000	 	Wapello	 	Chillicothe	 	27	 	73N	 	15W	 	OGS Substations	 	SE 1/4 SE 1/4	 	90-1
90-10
	Easement
	 	PT	 	10000	 	Wapello	 	Chillicothe	 	35	 	73N	 	15W	 	OGS Substations	 	NW 1/4 NW 1/4	 	90-1
90-10
	Easement
	 	PT	 	10000	 	Wapello	 	Chillicothe	 	36	 	73N	 	15W	 	OGS Substations	 	Government Lot 2	 	90-1
 90-10
	Easement
	 	PT	 	10010
10022	 	Des Moines	 	Burlington	 	29	 	69N	 	2W	 	Burlington Generating Station	 	SW 1/4	 	29-31
 29-32
 29-33
 29-37
	Easement
	 	PT	 	10026
10027	 	Linn	 	Cedar Rapids	 	21	 	83N	 	7W	 	Sixth Street	 	SE 1/4 NW 1/4, NE 1/4 SW 1/4
 NW 1/4 NE 1/4, SW 1/4 NE 1/4	 	57-22
 57-30
 57-31
 57-70
	Easement
	 	PT	 	10029	 	Appanoose	 	Centerville	 	25	 	69N	 	18W	 	Centerville North Substation	 	E 1/2 SW 1/4 NE 1/4	 	491091-4-7
	Easement
	 	PT	 	10029	 	Appanoose	 	Centerville	 	25	 	69N	 	18W	 	Centerville North Substation	 	E 1/2 SW 1/4 NE 1/4	 	481057-4-4
	 
	 	 	 	10079	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	10081	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	10082	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Easement
	 	PT	 	10083	 	Marshall	 	Marshalltown	 	4	 	83N	 	17W	 	Marshalltown-Sutherland	 	NE 1/4, NW 1/4	 	110609-194
	 
	 	 	 	10079	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	10081	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	10082	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Easement
	 	PT	 	10083	 	Marshall	 	Marshalltown	 	5	 	83N	 	17W	 	Marshalltown-Sutherland	 	NW 1/4, NE 1/4	 	110605-190
	 
	 	 	 	10079	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	10081	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	10082	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Easement
	 	PT	 	10083	 	Marshall	 	Marshalltown	 	6	 	83N	 	17W	 	Marshalltown-Sutherland	 	NE 1/4	 	110605-190
	 
	 	 	 	10079	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	10081	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	10082	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Easement
	 	PT	 	10083	 	Marshall	 	Marshalltown	 	31	 	83N	 	17W	 	Marshalltown-Sutherland	 	NW 1/4, NE 1/4, SW 1/4, SE 1/4	 	526918-64-8

November 8, 2007

 

 

EXHIBIT 7, SCHEDULE 7.1 — JOINT USE TRANSMISSION SITE REAL PROPERTY

PRIMARILY TRANSMISSION WITH GENERATION SUBSTATIONS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Property	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Interest	 	T/PT	 	Code	 	County	 	City	 	Section	 	TWP	 	Range	 	Common Name	 	Legal Description	 	IPL File Number
	 
	 	 	 	10079	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	10081	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	10082	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Easement
	 	PT	 	10083	 	Marshall	 	Marshalltown	 	32	 	83N	 	17W	 	Marshalltown-Sutherland	 	NW 1/4, NE 1/4, SW 1/4, SE 1/4	 	422561-64-33
	 
	 	 	 	10079	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	10081	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	10082	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Easement
	 	PT	 	10083	 	Marshall	 	Marshalltown	 	33	 	83N	 	17W	 	Marshalltown-Sutherland	 	NW 1/4, SW 1/4, SE 1/4	 	110609-194
	 
	 	 	 	10103	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Easement
	 	PT	 	10104	 	Linn	 	Cedar Rapids	 	3	 	82N	 	7W	 	Prairie Creek	 	NE 1/4	 	99435-57-1D
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Lot 1 of Lot 1 of Lot 1 of Lot 1 of 	 	 
	Easement
	 	PT	 	10905	 	Dubuque	 	Dubuque	 	19	 	89N	 	3E	 	Dubuque 8th Street	 	Congressional Lot 8	 	511639-1.8091
	Easement
	 	PT	 	10905	 	Dubuque	 	Dubuque	 	19	 	89N	 	3E	 	Dubuque 8th Street	 	Lot A — Dubuque Electric
Company“s Subdivision No. 1	 	511640-1.8092
	Easement
	 	PT	 	10909	 	Allamakee	 	Lansing	 	2	 	98N	 	3W	 	Lansing	 	NW 1/4	 	1.1025
	Easement
	 	PT	 	10909	 	Allamakee	 	Lansing	 	3	 	98N	 	3W	 	Lansing	 	NE 1/4	 	1.1025
	Easement
	 	PT	 	10922	 	Clinton	 	Camanche	 	23	 	81N	 	6E	 	Clinton - Beaver Channel	 	Lot 1, Interstate Subdivision	 	511283-1.6028
	Easement
	 	PT	 	10922	 	Clinton	 	Camanche	 	23	 	81N	 	6E	 	Clinton - Beaver channel	 	Lot 2, Interstate Subdivision	 	511284-1.6030
	Easement
	 	PT	 	10930	 	Cerro Gordo	 	Mason City	 	4	 	97N	 	20W	 	Lime Creek	 	NE 1/4 SE 1/4, NW 1/4 SE 1/4	 	511227-1.17035
	Easement
	 	PT	 	11075	 	Cerro Gordo	 	Mason City	 	35	 	96N	 	21W	 	Emery 161 KV Switch Station	 	E 1/2 NW 1/4	 	19033.100176
	Easement
	 	PT	 	14005	 	Martin	 	Fox Lake	 	5	 	102N	 	32W	 	Fox Lake Substation and Switch Station	 	NW 1/4	 	512069-2.9015
	Easement
	 	PT	 	14026	 	LeSueur	 	Montgomery	 	11	 	111N	 	23W	 	Montgomery 69/13.8 KV	 	NW 1/4 NW 1/4	 	512051-2.8006
	Easement
	 	PT	 	14026	 	LeSueur	 	Montgomery	 	10	 	111N	 	23W	 	Montgomery 69/13.8 KV	 	NE 1/4 NE 1/4	 	512051-2.8006

November
8, 2007

 

 

Exhibit 7, Schedule 7.2

Joint Use Transmission Line Real Property — PT w/G

	 	 	 
	ERP	 	 
	Property	 	 
	Code **	 	Name of Generation Site with Electric Line Easements
	 
	10000

	 	OTTUMWA GENERATION STATION
	10010

	 	BURLINGTON GENERATING STATION
	10022

	 	BURLINGTON GENERATING STATION
	10026

	 	CEDAR RAPIDS SIXTH STREET
	10027

	 	CEDAR RAPIDS SIXTH STREET
	10029

	 	CENTERVILLE
	10079

	 	MARSHALLTOWN SUTHERLAND STATION
	10081

	 	MARSHALLTOWN SUTHERLAND STATION
	10082

	 	MARSHALLTOWN SUTHERLAND STATION
	10083

	 	MARSHALLTOWN SUTHERLAND STATION
	10103

	 	PRAIRE CREEK GENERATION STATION
	10104

	 	PRAIRE CREEK GENERATION STATION
	10905

	 	DUBUQUE GENERATION STATION
	10909

	 	LANSING GENEARATION STATION
	10922

	 	CLINTON ML KAPP GENERATION STATION
	10930

	 	LIME CREEK
	11075

	 	EMERY GENERATION STATION
	14005

	 	FOX LAKE GENERATION STATION
	14026

	 	MONTGOMERY

 

			
	**NOTES: 1)	 	New Electric Line Easements for PTw/G substations are provided at each of the Generation Sites listed above.
	 
	2)	 	ERP Codes are for substations at Generation Sites.

 

 

EXHIBIT 7, SCHEDULE 7.3 — JOINT USE TRANSMISSION REAL PROPERTY

PRIMARILY DISTRIBUTION SUBSTATIONS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Recorded	 	 	 	 	 	 	 
	 	 	 	 	 	 	Property	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Recording	 	Document	 	 	 	 	 	IPL File	 
	 	 	Fee Int	 	T/PT	 	Code	 	County	 	City	 	Section	 	TWP	 	Range	 	Common Name	 	Legal Description	 	Date	 	Number	 	Book	 	Page	 	Number	 
	 
	 	WD	 	PD	 	10889	 	ALLAMAKEE	 	POSTVILLE	 	32	 	96	 	6	 	POSTVILLE SW CORNER TOWN	 	SEE DEED	 	1/17/1950	 	213	 	79	 	230	 	 	511079-1.1009	 
	 
	 	WD	 	PD	 	10889	 	ALLAMAKEE	 	POSTVILLE	 	32	 	96	 	6	 	POSTVILLE SW CORNER TOWN	 	SEE DEED	 	11/23/1973	 	2446	 	A-16	 	95	 	 	511095-1.1021	 
	 
	 	WD	 	PD	 	10889	 	ALLAMAKEE	 	POSTVILLE	 	32	 	96	 	6	 	POSTVILLE SW CORNER TOWN	 	SEE DEED	 	4/20/2000	 	—	 	2000	 	908	 	 	523861-1.1028	 
	 
	 	WD	 	PD	 	10981	 	ALLAMAKEE	 	WAUKON	 	30	 	98	 	5	 	WAUKON 69/13.8 SUB	 	SEE DEED	 	4/29/1960	 	1138	 	85	 	382	 	 	511081-1.1011	 
	 
	 	WD	 	PD	 	10248	 	APPANOOSE	 	—	 	6	 	68	 	17W	 	CENTERVILLE SOUTH SUB	 	SEE DEED	 	1/12/1970	 	—	 	105	 	32	 	 	491095-4-12	 
	 
	 	QCD	 	PD	 	10013	 	BOONE	 	BOONE	 	—	 	—	 	—	 	BOONE @ PLANT SUB	 	SEE DEED	 	4/17/1942	 	64334	 	262	 	594	 	 	34661-8-4	 
	 
	 	QCD	 	PD	 	10013	 	BOONE	 	BOONE	 	—	 	—	 	—	 	BOONE @ PLANT SUB	 	SEE DEEDS & ABSTRACT	 	4651	 	2070	 	157	 	585	 	 	34662-8-5	 
	 
	 	WD	 	PD	 	10013	 	BOONE	 	BOONE	 	—	 	—	 	—	 	BOONE @ PLANT SUB	 	SEE DEED	 	5/6/1920	 	2326	 	197	 	65	 	 	34659-8-3	 
	 
	 	WD	 	PD	 	10013	 	BOONE	 	BOONE	 	—	 	—	 	—	 	BOONE @ PLANT SUB	 	SEE DEED	 	1/30/1922	 	—	 	202	 	55	 	 	34659-8-3	 
	 
	 	WD	 	PD	 	10013	 	BOONE	 	BOONE	 	—	 	—	 	—	 	BOONE @ PLANT SUB	 	SEE DEED	 	5/6/1920	 	2327	 	197	 	66	 	 	34659-8-3	 
	 
	 	WD	 	PD	 	10013	 	BOONE	 	BOONE	 	—	 	—	 	—	 	BOONE @ PLANT SUB	 	SEE DEED	 	1/30/1922	 	—	 	202	 	56	 	 	34660-8-3	 
	 
	 	D	 	PD	 	10013	 	BOONE	 	BOONE	 	—	 	—	 	—	 	BOONE @ PLANT SUB	 	SEE DEED	 	9/24/2006	 	3547	 	213	 	131	 	 	34658-8-3	 
	 
	 	D	 	PD	 	10016	 	BOONE	 	BOONE	 	28	 	84	 	26	 	BOONE CONTROL HOUSE	 	SEE MAP AND PROPERTY SHEET	 	—	 	—	 	—	 	—	 	 	8-3, 8-4, 8-5	 
	 
	 	WD	 	PD	 	10074	 	BOONE	 	MADRID	 	25	 	82	 	26	 	MADRID NORTH (69 KV LOOP)	 	SEE DEED	 	5/9/2000	 	002434	 	—	 	—	 	 	528583-8-36	 
	 
	 	QC	 	PD	 	11000	 	BREMER	 	TRIPOLI	 	3	 	92	 	12	 	TRIPOLI-69/14.4/12.5/4.16 KV	 	SEE DEED	 	4/10/1968	 	763	 	172	 	275	 	 	511107-1.2007	 
	 
	 	QC	 	PD	 	11000	 	BREMER	 	TRIPOLI	 	3	 	92	 	12	 	TRIPOLI-69/14.4/12.5/4.16 KV	 	SEE DEED	 	1/10/1990	 	19900143	 	 	 	 	 	 	542688-1.2005	 
	 
	 	WD	 	PD	 	10990	 	BUTLER	 	GREENE	 	1	 	93	 	17	 	EAST GREENE SUB	 	SEE DEED	 	7/9/1964	 	—	 	93	 	454	 	 	511160-1.4004	 
	 
	 	SWD	 	PD	 	10918	 	CERRO GORDO	 	MASON CITY	 	16	 	96	 	20	 	HWY 106 SUB	 	SEE DEED	 	5/31/1957	 	—	 	115	 	151	 	 	542621-1.17008	 
	 
	 	WD	 	PD	 	11037	 	CERRO GORDO	 	MASON CITY	 	10	 	96	 	20W	 	MASON CITY 5TH & DELAWARE SUB	 	SEE DOCS	 	4-11-11932	 	—	 	61	 	512	 	 	5112341.107042	 
	 
	 	WD	 	PD	 	11037	 	CERRO GORDO	 	MASON CITY	 	10	 	96	 	20W	 	MASON CITY 5TH & DELAWARE SUB	 	SEE DOCS	 	4/23/1942	 	—	 	76	 	387	 	 	511234-1.17042	 
	 
	 	WD	 	PD	 	10532	 	CLARKE	 	—	 	14	 	72	 	24W	 	OSCEOLA NORTH SUB	 	SEE DEED	 	11/6/1967	 	1220	 	71	 	13	 	 	477595-20-1	 
	 
	 	WD	 	PD	 	10533	 	CLARKE	 	—	 	24	 	72	 	26	 	OSCEOLA WEST SUB	 	SEE DEED	 	12/26/1985	 	—	 	85	 	181	 	 	477599-20-3	 
	 
	 	WD	 	PD	 	10533	 	CLARKE	 	—	 	24	 	72	 	26	 	OSCEOLA WEST SUB	 	SEE DEED	 	10/24/2000	 	843	 	96	 	711	 	 	477599-20-3-1	 
	 
	 	WD	 	PD	 	10983	 	CLAYTON	 	—	 	14	 	93	 	5W	 	ELKADER SUB	 	SEE DEED	 	10/10/1947	 	3839	 	108	 	378	 	 	511244-1.5011	 
	 
	 	WD	 	PD	 	10877	 	CLINTON	 	CLINTON	 	10	 	81	 	6E	 	CLINTON 2ND AVE SUB	 	SEE DEED	 	6/22/1966	 	6822	 	131	 	48	 	 	511287-1.6038	 
	 
	 	WD	 	PD	 	10877	 	CLINTON	 	CLINTON	 	11	 	81	 	6E	 	CLINTON 2ND AVE SUB	 	SEE DEED	 	6/22/1966	 	6822	 	131	 	48	 	 	511287-1.6038	 
	 
	 	QCD	 	PD	 	10992	 	CLINTON	 	CLINTON	 	7	 	81	 	7E	 	CLINTON SOUTH DIST. 18TH AVE	 	SEE DEED	 	3/5/1966	 	2602	 	218	 	513	 	 	511285-1.6036	 
	 
	 	WD	 	PD	 	11007	 	CLINTON	 	 	 	15	 	81	 	6E	 	CLINTON MILLCREEK SUB	 	SEE DEED	 	8/5/1969	 	4755	 	138	 	637	 	 	511290-1.6041	 
	 
	 	WD	 	PD	 	10419	 	DECATUR	 	LEON	 	29	 	69	 	25	 	LEON SUBSTATION	 	SEE DEED	 	8/5/1954	 	2372	 	298	 	20	 	 	481374-27-5	 
	 
	 	WD	 	PD	 	10419	 	DECATUR	 	LEON	 	29	 	69	 	25	 	LEON SUBSTATION	 	SEE DEED	 	3/19/1956	 	929	 	291	 	193	 	 	481376-27-5A	 
	 
	 	WD	 	PD	 	10419	 	DECATUR	 	LEON	 	29	 	69	 	25	 	LEON SUBSTATION	 	SEE DEED	 	3/19/1956	 	9301	 	298	 	173	 	 	481375-27-5A	 
	 
	 	WD	 	PD	 	10021	 	DES MOINES	 	BURLINGTON	 	36	 	70	 	3W	 	BURLINGTON AGENCY ST. SUB	 	SEE DEED	 	10/17/1951	 	11278	 	210	 	374	 	 	483522-29-35	 
	 
	 	WD	 	PD	 	10021	 	DES MOINES	 	BURLINGTON	 	36	 	70	 	3W	 	BURLINGTON AGENCY ST. SUB	 	SEE DEED	 	11/27/1953	 	12382	 	217	 	25	 	 	483523-29-35	 
	 
	 	WD	 	PD	 	10182	 	DES MOINES	 	BURLINGTON	 	5	 	69	 	2W	 	BURLINGTON 4TH ST SUB	 	SEE DEED	 	1/10/2004	 	2004-000354	 	—	 	—	 	 	19057.100661	 
	 
	 	QCD	 	PD	 	10182	 	DES MOINES	 	BURLINGTON	 	5	 	69	 	2W	 	BURLINGTON 4TH ST SUB	 	SEE DEED	 	2/19/2004	 	2004-001074	 	—	 	—	 	 	19057.100661-1	 
	 
	 	WD	 	PD	 	10183	 	DES MOINES	 	—	 	20	 	70	 	2W	 	BURLINGTON NORTH SUB	 	SEE DEED	 	5/26/1959	 	4030	 	238	 	71	 	 	541811-29-30	 
	 
	 	WD	 	PD	 	10183	 	DES MOINES	 	—	 	20	 	70	 	2W	 	BURLINGTON NORTH SUB	 	SEE DEED	 	1/5/1960	 	75	 	242	 	209	 	 	483516-29-30	 
	 
	 	WD	 	PD	 	10184	 	DES MOINES	 	BURLINGTON	 	20	 	69	 	2W	 	BURLINGTON SOUTH SUB	 	SEE DEED	 	6/25/1975	 	—	 	336	 	739	 	 	483511-29-25	 
	 
	 	WD	 	PD	 	10185	 	DES MOINES	 	BURLINGTON	 	1	 	69	 	3W	 	BURLINGTON FLINT RIDGE SUB	 	SEE DEED	 	5/12/1987	 	7046	 	357	 	720	 	 	483512-29-26	 
	 
	 	WD	 	PD	 	10487	 	DES MOINES	 	MEDIAPOLIS	 	26	 	72	 	3	 	MEDIAPOLIS SUB	 	SEE DEED	 	9/6/1980	 	1108	 	353	 	403	 	 	483505-29-27	 
	 
	 	QCD	 	PD	 	10487	 	DES MOINES	 	MEDIAPOLIS	 	26	 	72	 	3	 	MEDIAPOLIS SUB	 	SES DEED	 	4/3/1985	 	4798	 	354	 	202	 	 	483506-29-27	 
	 
	 	QCD	 	PD	 	10892	 	DUBUQUE	 	DYERSVILLE	 	32	 	89	 	2W	 	DYERSVILLE SUB	 	SEE DEED	 	10/2/1947	 	—	 	125	 	20	 	 	511322-1.8029	 
	 
	 	WD	 	PD	 	10892	 	DUBUQUE	 	DYERSVILLE	 	32	 	89	 	2W	 	DYERSVILLE SUB	 	SEE DEED	 	6/18/1949	 	36253	 	131	 	363	 	 	511609-1.8036	 
	 
	 	WD	 	PD	 	10945	 	DUBUQUE	 	—	 	11	 	88	 	1W	 	EPWORTH SUBSTATION	 	SEE DEED	 	6/12/1956	 	82453	 	L48	 	126	 	 	511614-1.8044	 
	 
	 	WD	 	PD	 	10946	 	DUBUQUE	 	DUBUQUE	 	36	 	89	 	2E	 	DUBUQUE SOUTH GRANDVIEW	 	SEE DEED	 	9/11/1956	 	84410	 	160	 	17	 	 	511679-1.8143	 
	 
	 	QCD	 	PD	 	10993	 	DUBUQUE	 	DUBUQUE	 	16	 	89	 	2E	 	ASBURY RD SUB	 	SEE DEED	 	3/6/1995	 	1870-95	 	—	 	—	 	 	541935-1.8141	 
	 
	 	QCD	 	PD	 	10993	 	DUBUQUE	 	DUBUQUE	 	16	 	89	 	2E	 	ASBURY RD SUB	 	SEE DEED	 	7/28/2005	 	2005-12108	 	—	 	—	 	 	511636-1.8084-1	 
	 
	 	QCD	 	PD	 	10993	 	DUBUQUE	 	DUBUQUE	 	16	 	89	 	2E	 	ASBURY RD SUB	 	SEE DEED - SOLD PT	 	7/28/2005	 	2005-12109	 	—	 	—	 	 	511636-1.8084	 
	 
	 	WD	 	PD	 	11002	 	DUBUQUE	 	—	 	29	 	89	 	2E	 	DUBUQUE CTR GROVE SUB	 	SEE DEED	 	8/11/1992	 	10965-92	 	—	 	 	 	 	511677-1.8139	 

November 17, 2007

 

 

EXHIBIT 7, SCHEDULE 7.3 — JOINT USE TRANSMISSION REAL PROPERTY

PRIMARILY DISTRIBUTION SUBSTATIONS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Recorded	 	 	 	 	 	 	 
	 	 	 	 	 	 	Property	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Recording	 	Document	 	 	 	 	 	IPL File	 
	 	 	Fee Int	 	T/PT	 	Code	 	County	 	City	 	Section	 	TWP	 	Range	 	Common Name	 	Legal Description	 	Date	 	Number	 	Book	 	Page	 	Number	 
	 
	 	QCD	 	PD	 	11002	 	DUBUQUE	 	 	 	29	 	89	 	2E	 	DUBUQUE CTR GROVE SUB	 	SEE DEED	 	8/11/1992	 	10966-92	 	—	 	—	 	 	511677-1.8139	 
	 
	 	WD	 	PD	 	11004	 	DUBUQUE	 	DUBUQUE	 	24	 	89	 	2E	 	DUBUQUE 17TH STREET SUB	 	SEE DEED	 	8/2/1967	 	12699	 	192	 	605	 	 	511632-1.8080	 
	 
	 	WD	 	PD	 	11004	 	DUBUQUE	 	DUBUQUE	 	24	 	89	 	2E	 	DUBUQUE 17TH STREET SUB	 	SEE DEED	 	2/18/1976	 	1295-76	 	 	 	—	 	 	511658-1.8115	 
	 
	 	QCD	 	PD	 	11004	 	DUBUQUE	 	DUBUQUE	 	24	 	89	 	2E	 	DUBUQUE 17TH STREET SUB	 	SEE DEED	 	11/12/1982	 	6233-82	 	 	 	—	 	 	511658-1.8126	 
	 
	 	SWD	 	PD	 	11064	 	DUBUQUE	 	DUBUQUE	 	25	 	89	 	1E	 	DUBUQUE SEIPPEL ROAD DIST. SUB	 	SEE DEED	 	7/1/2002	 	11772-02	 	—	 	—	 	 	19061.100186	 
	 
	 	WD	 	PD	 	10146	 	EMMET	 	—	 	16	 	99	 	31W	 	ARMSTONG GROVE SUB	 	SEE DEED	 	8/15/2001	 	1535	 	2001	 	1535	 	 	534259-32-4	 
	 
	 	QCD	 	PD	 	14007	 	FARIBAULT	 	WINNEBAGO	 	35	 	104	 	28	 	WBGO 69/12.5 & 69/4.16	 	SEE DEED	 	2/20/1954	 	171473	 	119	 	17	 	 	541930-2.3012	 
	 
	 	QCD	 	PD	 	14007	 	FARIBAULT	 	WINNEBAGO	 	35	 	104	 	28	 	WBGO 69/12.5 & 69/4.16	 	SEE DEED	 	10/8/1942	 	142224	 	100	 	475	 	 	511693-2.3012	 
	 
	 	QCD	 	PD	 	14007	 	FARIBAULT	 	WINNEBAGO	 	35	 	104	 	28	 	WBGO 69/12.5 & 69/4.16	 	SEE DEED	 	11/26/1951	 	166077	 	116	 	142	 	 	541930-2.3012-1	 
	 
	 	WD	 	PD	 	14057	 	FARIBAULT	 	—	 	11	 	101	 	25W	 	BRICELYN SUB	 	SEE DEED	 	12/30/1957	 	181648	 	126	 	86	 	 	511694-2.3013	 
	 
	 	QD	 	PD	 	10913	 	FAYETTE	 	WEST UNION	 	17	 	94	 	8	 	WEST UNION	 	SEE DEED	 	3/4/1948	 	1117	 	114	 	594	 	 	511727-1.9035	 
	 
	 	WO	 	PD	 	10913	 	FAYETTE	 	WEST UNION	 	17	 	94	 	8	 	WEST UNION	 	SEE DEED	 	12/30/1947	 	6827	 	119	 	517	 	 	511727-1.9035-1	 
	 
	 	QD	 	PD	 	10913	 	FAYETTE	 	WEST UNION	 	17	 	94	 	8	 	WEST UNION	 	SEE DEED	 	3/4/1948	 	1116	 	110	 	537	 	 	511727-1.9035-2	 
	 
	 	WD	 	PD	 	10913	 	FAYETTE	 	WEST UNION	 	17	 	94	 	8	 	WEST UNION	 	SEE DEED	 	8/28/1978	 	—	 	151	 	486	 	 	511727-1.9035-3	 
	 
	 	TITLE OP.	 	PD	 	10980	 	FAYETTE	 	OELWEIN	 	21	 	91	 	9	 	OELWEIN SUBSTATION	 	SEE TITLE OPINION	 	—	 	—	 	—	 	—	 	 	1.9007	 
	 
	 	WD	 	PD	 	10980	 	FAYETTE	 	OELWEIN	 	21	 	91	 	9	 	OELWEIN SUBSTATION	 	SEE LETTER	 	—	 	—	 	—	 	—	 	 	511706-1.9008	 
	 
	 	QCD	 	PD	 	10980	 	FAYETTE	 	OELWEIN	 	21	 	91	 	9	 	OELWEIN SUBSTATION	 	SEE DEED	 	8/23/1983	 	2251	 	164	 	167	 	 	511731-1.9040	 
	 
	 	WD	 	PD	 	10980	 	FAYETTE	 	OELWEIN	 	21	 	91	 	9	 	OELWEIN SUBSTATION	 	SEE DEED	 	7/27/1968	 	2543	 	77	 	325	 	 	511724-1.9032	 
	 
	 	QCD	 	PD	 	10980	 	FAYETTE	 	OELWEIN	 	21	 	91	 	9	 	OELWEIN SUBSTATION	 	SEE DEED	 	7/22/1993	 	2364	 	195	 	245	 	 	511773-1.9044	 
	 
	 	WD	 	PD	 	10987	 	FAYETTE	 	—	 	32	 	95	 	7W	 	CLERMONT SUB	 	SEE DEED	 	8/18/1962	 	4365	 	130	 	182	 	 	511720-1.9028	 
	 
	 	WD	 	PD	 	10987	 	FAYETTE	 	—	 	5	 	94	 	7W	 	CLERMONT SUB	 	SEE DEED	 	8/18/1962	 	4365	 	130	 	182	 	 	511720-1.9028	 
	 
	 	WD	 	PD	 	14034	 	FILLMORE	 	—	 	5	 	104	 	11W	 	CHATFIELD SUB	 	SEE DEED	 	8/2/1985	 	240791	 	233	 	719	 	 	511781-2.4015	 
	 
	 	WD	 	PD	 	10988	 	FLOYD	 	—	 	24	 	96	 	17	 	RUDD JCT (69/13.8KV)	 	SEE DEED	 	7/13/1963	 	1312	 	92	 	461	 	 	511786-1.10003	 
	 
	 	WD	 	PD	 	14017	 	FREEBORN	 	—	 	7	 	102	 	21W	 	ALBERT LEA WEST SIDE SUB	 	SEE DEED	 	4/11/1963	 	202747	 	7	 	204	 	 	511999-2.5032	 
	 
	 	WD	 	PD	 	14017	 	FREEBORN	 	—	 	12	 	102	 	22W	 	ALBERT LEA WEST SIDE SUB	 	SEE DEED	 	4/23/1963	 	202851	 	107	 	563	 	 	511996-2.5028	 
	 
	 	WD	 	PD	 	14017	 	FREEBORN	 	—	 	12	 	102	 	22W	 	ALBERT LEA WEST SIDE SUB	 	SEE DEED	 	8/17/2000	 	411662	 	—	 	—	 	 	523079-2.5032	 
	 
	 	WD	 	PD	 	14067	 	FREEBORN	 	—	 	4	 	101	 	20	 	GLENVILLE SUB	 	SEE DEED	 	6/26/1961	 	195848	 	165	 	103	 	 	511995-2.5026	 
	 
	 	WD	 	PD	 	14080	 	FREEBORN	 	ALBERT LEA	 	21	 	102	 	21W	 	ALBERT LEA 19TH ST SUB	 	SEE DEED	 	10/17/1967	 	222815	 	189	 	201	 	 	512002-2.5037	 
	 
	 	WD	 	PD	 	14080	 	FREEBORN	 	ALBERT LEA	 	21	 	102	 	21W	 	ALBERT LEA 19TH ST SUB	 	SEE DEED	 	8/2/1967	 	221795	 	188	 	291	 	 	512002-2.5037	 
	 
	 	WD	 	PD	 	14094	 	FREEBORN	 	ALBERT LEA	 	9	 	102	 	21W	 	ALBERT LEA SOUTH BROADWAY	 	NO DEED IN FILE	 	—	 	—	 	—	 	—	 	 	512007-2.5045	 
	 
	 	WD	 	PD	 	14094	 	FREEBORN	 	ALBERT LEA	 	9	 	102	 	21W	 	ALBERT LEA SOUTH BROADWAY	 	NO DEED IN FILE	 	—	 	 	 	—	 	—	 	 	512008-2.5046	 
	 
	 	WD	 	PD	 	10878	 	HOWARD	 	CRESCO	 	22	 	99	 	11	 	CRESCO SUB	 	SEE DEED	 	1/3/1972	 	—	 	69	 	70	 	 	512019-1.11008	 
	 
	 	SWD	 	PD	 	10089	 	JASPER	 	NEWTON	 	33	 	80	 	19	 	NEWTON 8TH ST. SUB	 	SEE DEED	 	8/9/1961	 	5211	 	573	 	399	 	 	481386-50-9	 
	 
	 	WD	 	PD	 	10089	 	JASPER	 	NEWTON	 	33	 	80	 	19	 	NEWTON 8TH ST. SUB	 	SEE DEED	 	11/16/1937	 	9540	 	407	 	110	 	 	481380-50-5	 
	 
	 	WD	 	PD	 	10089	 	JASPER	 	NEWTON	 	33	 	80	 	19	 	NEWTON 8TH ST. SUB	 	SEE DEED	 	11/16/1937	 	9539	 	407	 	109	 	 	481381-50-5	 
	 
	 	WD	 	PD	 	10089	 	JASPER	 	NEWTON	 	30	 	80	 	19	 	NEWTON 8TH ST. SUB	 	SEE DEED	 	11/16/1937	 	9538	 	393	 	209	 	 	481382-50-5	 
	 
	 	QCD	 	PD	 	10089	 	JASPER	 	NEWTON	 	30	 	80	 	19	 	NEWTON 8TH ST. SUB	 	SEE DEED	 	4/30/1953	 	—	 	500	 	379	 	 	481383-50-6	 
	 
	 	QCD	 	PD	 	10089	 	JASPER	 	NEWTON	 	30	 	80	 	19	 	NEWTON 8TH ST. SUB	 	PT SOLD - SEE DEED	 	6/27/1997	 	4468	 	1093	 	224	 	 	509370-50-13	 
	 
	 	QCD	 	PD	 	10518	 	JASPER	 	NEWTON	 	26	 	80	 	19	 	NEWTON - AURORA HEIGHTS SUB	 	SEE DEED	 	4/27/1959	 	—	 	557	 	420	 	 	481385-50-8	 
	 
	 	WD	 	PD	 	10518	 	JASPER	 	NEWTON	 	26	 	80	 	19	 	NEWTON - AURORA HEIGHTS SUB	 	SEE DEED	 	9/23/1953	 	—	 	503	 	360	 	 	481384-50-7	 
	 
	 	QCD	 	PD	 	10311	 	JEFFERSON	 	FAIRFIELD	 	26	 	72	 	10	 	FAIRFIELD 7TH ST. SUB	 	SEE DEED	 	8/28/1984	 	756	 	172	 	350	 	 	97358-51-1	 
	 
	 	D	 	PD	 	10311	 	JEFFERSON	 	FAIRFIELD	 	26	 	72	 	10	 	FAIRFIELD 7TH ST. SUB	 	SEE DEED	 	8/11/1978	 	369	 	159	 	500	 	 	51-2	 
	 
	 	WD	 	PD	 	10311	 	JEFFERSON	 	FAIRFIELD	 	26	 	72	 	10	 	FAIRFIELD 7TH ST. SUB	 	SEE DEED	 	3/14/1917	 	739	 	—	 	—	 	 	97359-51-2	 
	 
	 	AFF	 	PD	 	10311	 	JEFFERSON	 	FAIRFIELD	 	26	 	72	 	10	 	FAIRFIELD 7TH ST. SUB	 	SEE AFFIDAVIT	 	11/7/1983	 	1789	 	—	 	—	 	 	51-2	 
	 
	 	QCD	 	PD	 	10311	 	JEFFERSON	 	FAIRFIELD	 	26	 	72	 	10	 	FAIRFIELD 7TH ST. SUB	 	SEE DEED	 	11/20/2001	 	2925	 	223	 	193	 	 	5418S7-51-2	 
	 
	 	QCD	 	PD	 	10311	 	JEFFERSON	 	FAIRFIELD	 	26	 	72	 	10	 	FAIRFIELD 7TH ST. SUB	 	SEE DEED	 	8/1/1991	 	2122	 	194	 	730	 	 	374532-51-9	 
	 
	 	WD	 	PD	 	10311	 	JEFFERSON	 	FAIRFIELD	 	26	 	72	 	10	 	FAIRFIELD 7TH ST. SUB	 	SEE DEED	 	10/1/1990	 	—	 	193	 	281	 	 	330030-51-8	 
	 
	 	AD	 	PD	 	10315	 	JEFFERSON	 	FAIRFIELD	 	26	 	72	 	10W	 	FAIRFIELD WASHINGTON SUB	 	SEE DEED	 	—	 	—	 	—	 	—	 	 	97360-51-2	 
	 
	 	WD	 	PD	 	10315	 	JEFFERSON	 	FAIRFIELD	 	26	 	72	 	10W	 	FAIRFIELD WASHINGTON SUB	 	SEE DEED	 	6/15/90	 	3720	 	191	 	463	 	 	330029-51-7	 
	 
	 	WD	 	PD	 	10315	 	JEFFERSON	 	FAIRFIELD	 	26	 	72	 	10	 	FAIRFIELD WASHINGTON SUB	 	SEE DEED	 	4/23/1930	 	—	 	91	 	114	 	 	541856-51-2	 

 November 17, 2007

 

 

EXHIBIT 7, SCHEDULE 7.3 — JOINT USE TRANSMISSION REAL PROPERTY

PRIMARILY DISTRIBUTION SUBSTATIONS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Recorded	 	 	 	 	 	 	 
	 	 	 	 	 	 	Property	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Recording	 	Document	 	 	 	 	 	IPL File	 
	 	 	Fee Int	 	T/PT	 	Code	 	County	 	City	 	Section	 	TWP	 	Range	 	Common Name	 	Legal Description	 	Date	 	Number	 	Book	 	Page	 	Number	 
	 
	 	WD	 	PD	 	10315	 	JEFFERSON	 	FAIRFIELD	 	26	 	72	 	10	 	FAIRFIELD WASHINGTON SUB	 	SEE DEED	 	4/23/1930	 	—	 	91	 	115	 	 	97364-51-2	 
	 
	 	QCD	 	PD	 	10315	 	JEFFERSON	 	FAIRFIELD	 	26	 	72	 	10	 	FAIRFIELD WASHINGTON SUB	 	SEE DEED	 	12/30/1954	 	5302	 	118	 	338	 	 	97361-51-2	 
	 
	 	WD	 	PD	 	01031	 	JONES	 	ANAMOSA	 	10	 	84	 	4	 	ANAMOSA (AT PLANT) TRANS SUB	 	SEE PLAT OF SURVEY	 	9/29/98	 	98 99 1513	 	N	 	27	 	 	53-3	 
	 
	 	WD	 	PD	 	10500	 	JONES	 	MONTICELLO	 	21	 	86	 	3	 	MONTICELLO INDUSTRIAL SUB	 	SEE DEED	 	12/20/2000	 	2000-3868	 	—	 	—	 	 	528119-53-17	 
	 
	 	QCD	 	PD	 	10352	 	KEOKUK	 	—	 	34	 	74	 	13	 	HEDRICK-TRANS SUB	 	SEE DEED	 	1/15/1985	 	—	 	100	 	192	 	 	541853-54-3	 
	 
	 	QCD	 	PD	 	10352	 	KEOKUK	 	—	 	34	 	74	 	13	 	HEDRICK-TRANS SUB	 	SEE DEED	 	10/15/1985	 	—	 	101	 	297	 	 	481391-54-3	 
	 
	 	WD	 	PD	 	10591	 	KEOKUK	 	SIGOURNEY	 	35	 	76	 	12W	 	SIGOURNEY SUB	 	SEE DEED	 	2/19/1927	 	—	 	57	 	154	 	 	483525-54-8	 
	 
	 	WD	 	PD	 	10591	 	KEOKUK	 	SIGOURNEY	 	35	 	76	 	12W	 	SIGOURNEY SUB	 	SEE DEED	 	9/24/1926	 	—	 	37	 	63	 	 	483525-54-8-1	 
	 
	 	WD	 	PD	 	10591	 	KEOKUK	 	SIGOURNEY	 	35	 	76	 	12W	 	SIGOURNEY SUB	 	SEE DEED	 	10/5/1960	 	3974	 	80	 	244	 	 	483527-54-10	 
	 
	 	WD	 	PD	 	10591	 	KEOKUK	 	SIGOURNEY	 	35	 	76	 	12W	 	SIGOURNEY SUB	 	SEE DEED	 	9/26/1973	 	—	 	87	 	458	 	 	481393-54-4	 
	 
	 	QCD	 	PD	 	10591	 	KEOKUK	 	SIGOURNEY	 	35	 	75	 	12	 	SIGOURNEY SUB	 	SEE DEED	 	9/26/1973	 	1705	 	87	 	459	 	 	481392-54-4	 
	 
	 	WD	 	PD	 	10919	 	KOSSUTH	 	—	 	19	 	99N	 	27W	 	LAKOTA TRANSFER SUB	 	SEE DEED	 	12/30/1957	 	—	 	92	 	402	 	 	541901-1.12005	 
	 
	 	WD	 	PD	 	10919	 	KOSSUTH	 	—	 	19	 	99N	 	27W	 	LAKOTA TRANSFER SUB	 	SEE DEED	 	—	 	—	 	—	 	—	 	 	512047-1.12007	 
	 
	 	PERMIT	 	PD	 	10068	 	LEE	 	FT. MADISON	 	2	 	67	 	4	 	LEE 69 KV SUB	 	SEE PERMIT	 	7/29/1947	 	—	 	—	 	—	 	 	—	 
	 
	 	WD	 	PD	 	10392	 	LEE	 	KEOKUK	 	27	 	65	 	5	 	WEST KEOKUK	 	SEE DEED	 	3/10/1995	 	95S-15 83	 	—	 	—	 	 	476098-56-54	 
	 
	 	WD	 	PD	 	10394	 	LEE	 	KEOKUK	 	23	 	65	 	5W	 	KEOKUK MESSENGER	 	SEE DEED	 	1/11/1993	 	93S-5 D1	 	—	 	—	 	 	488642-56-49	 
	 
	 	WD	 	PD	 	10203	 	LINN	 	CEDAR RAPIDS	 	34	 	84	 	7W	 	DRY CREEK SUB	 	SEE DEED	 	7/24/2002	 	—	 	4758	 	257	 	 	19113-106978	 
	 
	 	SWD	 	PD	 	10205	 	LINN	 	CEDAR RAPIDS	 	—	 	—	 	—	 	E AVENUE SUB	 	SEE DEED	 	11/8/2003	 	—	 	2058	 	140	 	 	441843-57-80	 
	 
	 	WD	 	PD	 	10460	 	LINN	 	MARION	 	33	 	84	 	5	 	MARION SWAMP FOX	 	SEE DEED	 	6/7/2001	 	72418	 	4348	 	46	 	 	534641-57-91	 
	 
	 	WD	 	PD	 	11076	 	LINN	 	MARION	 	36	 	84	 	7	 	MARION OLD SETTLERS	 	SEE DEED	 	11/6/2002	 	—	 	4895	 	71	 	 	542019-57-92	 
	 
	 	QCD	 	PD	 	11076	 	LINN	 	MARION	 	36	 	84	 	7	 	MARION OLD SETTLERS	 	SEE DEED- SOLD PT	 	1/10/2007	 	—	 	6566	 	602	 	 	19113.100144-S1	 
	 
	 	QCD	 	PD	 	11076	 	LINN	 	MARION	 	36	 	84	 	7	 	MARION OLD SETTLERS	 	SEE DEED- SOLD PT	 	12/29/2003	 	—	 	5520	 	19	 	 	19113.10014-S2	 
	 
	 	WO	 	PD	 	11083	 	LINN	 	CEDAR RAPIDS	 	9	 	83	 	7	 	SAINTS RUN DIST SUB	 	SEE DEED	 	3/6/1948	 	—	 	785	 	22	 	 	99442-57-4	 
	 
	 	WD	 	PD	 	11083	 	LINN	 	CEDAR RAPIDS	 	9	 	83	 	7	 	SAINTS RUN DIST SUB	 	SEE DEED	 	4/21/1972	 	6122	 	1530	 	329	 	 	99446-57-4B	 
	 
	 	SWD	 	PD	 	11083	 	LINN	 	CEDAR RAPIDS	 	9	 	83	 	7	 	SAINTS RUN DIST SUB	 	SEE DEED-SOLD PT	 	4/19/1978	 	—	 	1711	 	340	 	 	99444-57-4	 
	 
	 	WD	 	PD	 	11083	 	LINN	 	CEDAR RAPIDS	 	9	 	83	 	7	 	SAINTS RUN DIST SUB	 	SSE DEED	 	12/15/2005	 	—	 	6211	 	144	 	 	57-4C	 
	 
	 	WD	 	PD	 	11083	 	LINN	 	CEDAR RAPIDS	 	9	 	83	 	7	 	SAINTS RUN DIST SUB	 	SEE DEED	 	12/16/2005	 	—	 	6212	 	108	 	 	57-4C	 
	 
	 	WD	 	PD	 	11083	 	LINN	 	CEDAR RAPIDS	 	9	 	83	 	7	 	SAINTS RUN DIST SUB	 	SEE DEED	 	12/16/2005	 	—	 	6212	 	106	 	 	57-4C	 
	 
	 	WD	 	PD	 	11117	 	LINN	 	HIAWATHA	 	—	 	—	 	—	 	HIAWATHA BOYSON COMMERCIAL	 	SEE DEED	 	6/8/2007	 	12357500002	 	6695	 	413	 	 	19113.11096	 
	 
	 	WD	 	PD	 	10262	 	LOUISA	 	—	 	25	 	75	 	5	 	COLUMBUS JCT. NE SUB	 	SEE DEED	 	5/14/1964	 	1717	 	247	 	419	 	 	486043-58-1	 
	 
	 	QCD	 	PD	 	10262	 	LOUISA	 	—	 	25	 	75	 	5	 	COLUMBUS JCT. NE SUB	 	SEE DEED	 	5/19/1964	 	1765	 	247	 	408	 	 	58-1	 
	 
	 	WD	 	PD	 	10627	 	LOUISA	 	WAPELLO	 	34	 	74	 	3	 	WAPELLO SUBSTATION	 	SEE DEED	 	3/4/1936	 	634	 	184	 	35	 	 	486045-58.2	 
	 
	 	WD	 	PD	 	10627	 	LOUISA	 	WAPELLO	 	34	 	74	 	3	 	WAPELLO SUBSTATION	 	SEE DEED	 	3/12/1973	 	335	 	289	 	396	 	 	486044-58.2	 
	 
	 	WD	 	PD	 	10250	 	LUCAS	 	CHARITON	 	20	 	72	 	21	 	CHARITON SUB	 	SEE DEED	 	6/6/1924	 	—	 	3	 	316	 	 	486053-59-5	 
	 
	 	WD	 	PD	 	10250	 	LUCAS	 	CHARITON	 	20	 	72	 	21	 	CHARITON SUB	 	SEE PAGE FROM ABSTRACT	 	3/18/1924	 	—	 	4	 	167	 	 	59-5	 
	 
	 	WD	 	PD	 	50166	 	MARSHALL	 	MTOWN	 	32	 	84	 	18	 	MARSHALLTOWN (HIGHLAND ACRES)	 	SEE DEED	 	8/17/1971	 	3376	 	22	 	446	 	 	105720-64-17	 
	 
	 	WD	 	PD	 	50166	 	MARSHALL	 	MTOWN	 	32	 	84	 	18	 	MARSHALLTOWN (HIGHLAND ACRES)	 	SEE DEED	 	11/26/2002	 	209682	 	—	 	—	 	 	542031-64-17	 
	 
	 	WD	 	PD	 	50166	 	MARSHALL	 	MTOWN	 	32	 	84	 	18	 	MARSHALLTOWN (HIGHLAND ACRES)	 	SEE DEED	 	11/26/2002	 	209684	 	—	 	—	 	 	542032-64-17	 
	 
	 	WD	 	PD	 	10884	 	MITCHELL	 	—	 	24	 	99	 	18	 	ST. ANSGAR SUB	 	SEE DEED	 	9/27/1943	 	3205	 	60	 	267	 	 	512079-1.13010	 
	 
	 	WD	 	PD	 	10884	 	MITCHELL	 	—	 	24	 	99	 	18	 	ST. ANSGAR SUB	 	SEE DEED	 	11/24/1972	 	1571	 	68	 	48	 	 	512083-1.13014	 
	 
	 	WD	 	PD	 	10884	 	MITCHELL	 	—	 	24	 	99	 	18	 	ST. ANSGAR SUB	 	SEE DEED	 	7/15/1973	 	240	 	68	 	105	 	 	541932-1.13014	 
	 
	 	WD	 	PD	 	10884	 	MITCHELL	 	—	 	25	 	99	 	18	 	ST. ANSGAR SUB	 	SEE DEED	 	6/5/1973	 	964	 	68	 	245	 	 	541933-1.13014	 
	 
	 	WD	 	PD	 	10914	 	MITCHELL	 	—	 	36	 	99	 	15	 	RICEVILLE	 	SEE DEED	 	12/5/1956	 	—	 	64	 	54	 	 	512080-1.13011	 
	 
	 	WD	 	PD	 	10179	 	MONROE	 	—	 	12	 	73	 	16W	 	BRIDGEPORT 69 KV SUB	 	SEE DEED	 	8/8/1951	 	2408	 	128	 	405	 	 	19135.10514	 
	 
	 	QCD	 	PD	 	10179	 	MONROE	 	—	 	12	 	73	 	16W	 	BRIDGEPORT 69 KV SUB	 	SEE DEED	 	8/9/1951	 	2410	 	126	 	166	 	 	19135.105124-1	 
	 
	 	WD	 	PD	 	14025	 	MURRAY	 	FULDA	 	36	 	105	 	40	 	FULDA JCT SUB (69/24KV)	 	SEE DEED	 	5/10/1972	 	147557	 	—	 	—	 	 	512105-2.11008	 
	 
	 	WD	 	PD	 	14008	 	OLMSTED	 	—	 	16	 	106	 	11W	 	DOVER SUB & SWITCH STAT.	 	SEE DEED	 	3/15/1949	 	184323	 	227	 	305	 	 	512113-2.12005	 
	 
	 	WD	 	PD	 	10344	 	POWESHIEK	 	GRIN NELL	 	16	 	80	 	16	 	GRINNELL SUBSTATION	 	SEE DEED	 	12/27/1958	 	4993	 	241	 	240	 	 	486069-79-5	 
	 
	 	ABST	 	PD	 	10344	 	POWESHIEK	 	GRIN NELL	 	16	 	80	 	16	 	GRINNELL SUBSTATION	 	SEE ABSTACT	 	12/12/1925	 	—	 	161	 	150	 	 	79-5	 
	 
	 	WD	 	PD	 	10345	 	POWESHIEK	 	GRIN NELL	 	4	 	79	 	16	 	GRINNELL SOUTH	 	SEE DEED	 	8/21/1973	 	2233	 	324	 	212	 	 	483533-79-1	 

November 17, 2007

 

 

EXHIBIT 7, SCHEDULE 7.3 — JOINT USE TRANSMISSION REAL PROPERTY

PRIMARILY DISTRIBUTION SUBSTATIONS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Recorded	 	 	 	 	 	 	 
	 	 	 	 	 	 	Property	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Recording	 	Document	 	 	 	 	 	IPL File
	 	 	Fee Int	 	T/PT	 	Code	 	County	 	City	 	Section	 	TWP	 	Range	 	Common Name	 	Legal Description	 	Date	 	Number	 	Book	 	Page	 	Number
	 
	 	WD	 	PD	 	14037	 	REDWOOD	 	LAMBERTON	 	23	 	109	 	37W	 	LAMBERTON SUB	 	SEE DEED	 	10/28/1946	 	—	 	96	 	545	 	 	512116-2.13002	 
	 
	 	WD	 	PD	 	14068	 	REDWOOD	 	—	 	23	 	111	 	37	 	WABASSO SUB 69/12.5 KV	 	SEE DEED	 	9/5/1961	 	186112	 	111	 	404	 	 	512122-2.13008	 
	 
	 	QCD	 	PD	 	14081	 	STEELE	 	—	 	33	 	105	 	20	 	ELLENDALE COUNTY LINE SUB	 	SEE DEED	 	12/28/1949	 	102706	 	111	 	540	 	 	512134-2.16005	 
	 
	 	WD	 	PD	 	10092	 	STORY	 	NEVADA	 	6	 	83	 	22	 	NEVADA (AT PLANT)	 	SEE DEED	 	6/3/1913	 	188	 	40	 	169	 	 	108951-85-4-1	 
	 
	 	WD	 	PD	 	10092	 	STORY	 	NEVADA	 	6	 	83	 	22	 	NEVADA (AT PLANT)	 	SEE DEED	 	2/26/1918	 	475	 	65	 	127	 	 	108949-85-4	 
	 
	 	WD	 	PD	 	10092	 	STORY	 	NEVADA	 	6	 	83	 	22	 	NEVADA (AT PLANT)	 	SEE DEED	 	9/23/1925	 	5426	 	68	 	376	 	 	108949-85-4-1	 
	 
	 	WD	 	PD	 	10092	 	STORY	 	NEVADA	 	6	 	83	 	22	 	NEVADA (AT PLANT)	 	SEE DEED	 	5/29/1930	 	4023	 	72	 	305	 	 	108950-85-4	 
	 
	 	WD	 	PD	 	10092	 	STORY	 	NEVADA	 	6	 	83	 	22	 	NEVADA (AT PLANT)	 	SEE DEED	 	9/13/1930	 	6517	 	60	 	563	 	 	108948-85-4	 
	 
	 	WD	 	PD	 	10093	 	STORY	 	NEVADA	 	6	 	83	 	22	 	NEVADA NORTH	 	SEE DEED	 	12/13/1946	 	11258	 	86	 	51	 	 	108953-85-4	 
	 
	 	WD	 	PD	 	10093	 	STORY	 	NEVADA	 	6	 	83	 	22	 	NEVADA NORTH	 	SEE DEED	 	9/6/1946	 	8648	 	85	 	27	 	 	108952-85-4	 
	 
	 	WD	 	PD	 	10093	 	STORY	 	NEVADA	 	6	 	83	 	22	 	NEVADA NORTH	 	SEE DEED	 	1/7/1929	 	139	 	61	 	112	 	 	108954-85-5	 
	 
	 	WO	 	PD	 	10093	 	STORY	 	NEVADA	 	6	 	83	 	22	 	NEVADA NORTH	 	SEE DEED	 	6/4/1979	 	9101	 	177	 	207	 	 	541898-85-11	 
	 
	 	WD	 	PD	 	10511	 	STORY	 	NEVADA	 	8	 	83	 	22	 	NEVADA 19TH STREET	 	SEE DEED	 	3/3/2000	 	00-02262	 	—	 	—	 	 	522852-85-18	 
	 
	 	QD	 	PD	 	11078	 	STORY	 	HUXLEY	 	23	 	82	 	24	 	HUXLEY IND. PARK	 	SEE DEED	 	4/17/1972	 	1942	 	147	 	499	 	 	108957-85-7	 
	 
	 	QCD	 	PD	 	10268	 	UNION	 	CRESTON	 	1	 	72	 	31	 	CRESTON SUB	 	SEE DEED	 	4/21/1970	 	—	 	372	 	56	 	 	486086-88-8	 
	 
	 	WD	 	PD	 	10268	 	UNION	 	CRESTON	 	1	 	72	 	31	 	CRESTON SUB- SOLO PT	 	SEE DEED	 	2/11/2000	 	000223	 	665	 	033	 	 	522470-88-8	 
	 
	 	TITLE OP.	 	PD	 	10268	 	UNION	 	CRESTON	 	1	 	72	 	31	 	CRESTON SUB	 	SEE TITLE OPINION	 	1/25/2000	 	—	 	—	 	—	 	 	88-8	 
	 
	 	WD	 	PD	 	10011	 	VanBUREN	 	—	 	7	 	68	 	8	 	BONAPARTE 69 KV SUB	 	SEE DEED	 	10/11/1983	 	—	 	111	 	839	 	 	109323-89-11	 
	 
	 	WO	 	PD	 	14043	 	WABASHA	 	PLAINVIEW	 	17	 	108	 	11	 	PLAINVIEW	 	SEE DEED	 	11/23/1949	 	97555	 	—	 	—	 	 	512138-2.19002	 
	 
	 	WD	 	PD	 	14043	 	WABASHA	 	PLAINVIEW	 	17	 	108	 	11	 	PLAINVIEW	 	SEE DEED	 	1/19/2000	 	235510	 	—	 	—	 	 	528584-2.19002	 
	 
	 	WD	 	PD	 	10534	 	WAPELLO	 	OTTUMWA	 	35	 	72	 	14W	 	OTTUMWA SOUTH SUB	 	SEE DEED	 	9/5/1974	 	4339	 	383	 	600	 	 	488656-90-7	 
	 
	 	WD	 	PD	 	10538	 	WAPELLO	 	—	 	1	 	72	 	14W	 	OTTUMWA - RUTLEDGE SUB	 	SEE DEED	 	9/4/1958	 	7227	 	275	 	549	 	 	488651-90-3	 
	 
	 	QCD	 	PD	 	10635	 	WASHINGTON	 	WASHINGTON	 	17	 	75N	 	7W	 	WASHINGTON SUB	 	SEE DEED AND NOTE	 	9/18/46	 	—	 	25	 	602	 	 	486151-92-6	 
	 
	 	QCD	 	PD	 	10635	 	WASHINGTON	 	WASHINGTON	 	17	 	75N	 	7W	 	WASHINGTON SUB	 	SEE DEED AND NOTE	 	2/16/82	 	—	 	57	 	142	 	 	486152-92-6	 
	 
	 	WD	 	PD	 	14065	 	WATONWAN	 	—	 	33	 	106	 	30	 	LEWISVILLE	 	SEE DEED	 	9/28/1983	 	142270	 	123	 	4149	 	 	512145-2.18007-1	 
	 
	 	WD	 	PD	 	14065	 	WATONWAN	 	—	 	33	 	106	 	30	 	LEWISVILLE	 	SEE DEED	 	6/20/1960	 	103793	 	70	 	42	 	 	512145-2.18007	 
	 
	 	WD	 	PD	 	10897	 	WINNEBAGO	 	BUFFALO CTR	 	20	 	99	 	26W	 	BUFFALO CTR SUB	 	SEE DEED	 	12/29/1948	 	4574	 	86	 	642	 	 	512156-1.14002	 
	 
	 	WD	 	PD	 	10906	 	WINNESHIEK	 	DECORAH	 	15	 	98	 	8W	 	DECORAH SUB	 	SEE DEED	 	2/26/1942	 	707	 	199	 	360	 	 	512176-1.15045	 
	 
	 	WD	 	PD	 	10906	 	WINNESHIEK	 	DECORAH	 	22	 	98	 	8W	 	DECORAH SUB	 	SEE DEED	 	6/7/1982	 	2281	 	341	 	199	 	 	512172-1.15039	 
	 
	 	WD	 	PD	 	10906	 	WINNESHIEK	 	DECORAH	 	15	 	98	 	8W	 	DECORAH SUB	 	SEE DEED-PT SOLD	 	2/22/1971	 	—	 	273	 	478	 	 	512176-1.15045-1	 
	 
	 	QCD	 	PD	 	10906	 	WINNESHIEK	 	DECORAH	 	22	 	98	 	8W	 	DECORAH SUB	 	SEE DEED	 	4/27/1972	 	739	 	278	 	403	 	 	512176-1.15045-2	 
	 
	 	WD	 	PD	 	10906	 	WINNESHIEK	 	DECORAH	 	15	 	98	 	8W	 	DECORAH SUB	 	SEE DEED-PT SOLD	 	6/29/1982	 	2527	 	341	 	226	 	 	512176-1.15045-3	 
	 
	 	WD	 	PD	 	10982	 	WINNESHIEK	 	OSSIAN	 	11	 	96	 	8W	 	OSSIAN SUB	 	SEE DEED	 	1/13/1941	 	—	 	178	 	314	 	 	512166-1.15028	 
	 
	 	WD	 	PD	 	11057	 	WINNESHIEK	 	—	 	36	 	97	 	9W	 	CALMAR SUB	 	SEE DEED	 	4/20/1951	 	—	 	215	 	611	 	 	512168-1.15031	 
	 
	 	WD	 	PD	 	14093	 	WINONA	 	LEWISTON	 	14	 	106	 	9	 	LEWISTON SUBSTATION	 	SEE DEED	 	11/9/1939	 	—	 	179	 	323	 	 	542623-2.17001	 
	 
	 	WD	 	PD	 	14093	 	WINONA	 	LEWISTON	 	14	 	106	 	9	 	LEWISTON SUBSTATION	 	SEE DEED	 	8/30/1962	 	194504	 	251	 	167	 	 	512179-2.17004	 
	 
	 	WD	 	PD	 	10956	 	WORTH	 	—	 	21	 	98	 	20W	 	MANLY — INTER SUB	 	SEE DEED	 	7/30/1958	 	—	 	27	 	502	 	 	512184-1.16004	 
	 
	 	WD	 	PD	 	10005	 	WRIGHT	 	 	 	25	 	93	 	24	 	BELMOND AT PLANT	 	SEE DEED	 	7/2/48	 	—	 	82	 	28	 	 	109337-99-4	 
	 
	 	WD	 	PD	 	10005	 	WRIGHT	 	 	 	25	 	93	 	24	 	BELMOND AT PLANT	 	SEE DEED	 	1/18/05	 	—	 	156	 	459	 	 	109337-99-4-1	 

November 17, 2007

 

 

EXHIBIT 7, SCHEDULE 7.4 — TRANSMISSION FEE INTERESTS

Primarily Transmission Substations — Reference IPL Schedule 4.4(g)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Recorded	 	 	 	 	 	 	 
	Line	 	 	 	 	 	Property	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Recording	 	Document	 	 	 	 	 	IPL File	 
	No.	 	Fee Int	 	T/PT	 	Code	 	County	 	City	 	Section	 	TWP	 	Range	 	Common Name	 	Legal Description	 	Date	 	Number	 	Book	 	Page	 	Number	 
	 
	 	WD	 	PT	 	10001	 	APPANOOSE	 	 	 	11	 	68	 	16W	 	APPANOOSE COUNTY SUB	 	SEE DEED	 	1/12/70	 	—	 	105	 	32	 	 	491096-4-13	 
	 
	 	WD	 	PT	 	10004	 	BENTON	 	BELLE PLAINE	 	20	 	82	 	12W	 	BELLE PLAINS JCT. SUB	 	SEE DEED	 	7/31/41	 	1595	 	108	 	544	 	 	33524-6-6	 
	 
	 	WD	 	PT	 	10014	 	BOONE	 	BOONE	 	21	 	84	 	26	 	BOONE ROCHO SUB	 	SEE DEED	 	4/2/56	 	3083	 	334	 	534	 	 	34676-8-17	 
	 
	 	WD	 	PT	 	10911	 	BUCHANAN	 	 	 	22	 	90	 	9	 	HAZELTON SUB	 	SEE DEED	 	3/3/65	 	—	 	324	 	464	 	 	511125-1.3009	 
	 
	 	WD	 	PT	 	10911	 	BUCHANAN	 	 	 	27	 	90	 	9	 	HAZELTON SUB	 	SEE DEED	 	3/3/65	 	—	 	324	 	464	 	 	511125-1.3009	 
	 
	 	QCD	 	PT	 	10911	 	BUCHANAN	 	 	 	22	 	90	 	9	 	HAZELTON SUB	 	SEE DEED-PT SOLD	 	12/4/90	 	1289	 	518	 	341	 	 	511129-1.3014-1	 
	 
	 	WD	 	PT	 	10911	 	BUCHANAN	 	 	 	22	 	90	 	9	 	HAZELTON SUB	 	SEE DEED	 	5/1/53	 	3758	 	288	 	282	 	 	511130-1.3015	 
	 
	 	WD	 	PT	 	10912	 	BUCHANAN	 	INDEPENDENCE	 	27	 	89	 	9W	 	INDEPENDENCE SUBSTATION	 	SEE DEED	 	12/29/53	 	8409	 	293	 	215	 	 	511123-1.3006	 
	 
	 	WD	 	PT	 	10910	 	CLAYTON	 	MANONA	 	11	 	95N	 	5W	 	MONONA SUB	 	SEE WD	 	10/3/47	 	3355	 	108	 	374	 	 	511242-1.5009	 
	 
	 	WD	 	PT	 	10036	 	CLINTON	 	DEWITT	 	19	 	81N	 	4E	 	DEWITT 161 SUB	 	SEE WD	 	8/10/77	 	5927-77	 	—	 	—	 	 	41679-23-6	 
	 
	 	WD	 	PT	 	10916	 	CLINTON	 	 	 	19	 	82	 	7E	 	NORTH CLINTON SWITCH STATION	 	SEE DEED	 	2/27/46	 	2205	 	—	 	—	 	 	511300-1.06052	 
	 
	 	WD	 	PT	 	14092	 	COTTONWOOD	 	STORDEN	 	28	 	107	 	37	 	STORDEN SUBSTATION	 	SEE DEED	 	7-28-51	 	117852	 	84	 	539	 	 	511304-2.2004	 
	 
	 	WD	 	PT	 	10095	 	DALLAS	 	PERRY	 	9	 	81N	 	28W	 	PERRY SUBSTATION	 	SEE WARRANTY DEED	 	12/28/65	 	3413	 	463	 	14	 	 	41690-25-5A	 
	 
	 	WD	 	PT	 	10095	 	DALLAS	 	PERRY	 	9	 	81N	 	28W	 	PERRY SUBSTATION	 	SEE WD-SELL PORTION	 	3/28/73	 	—	 	—	 	—	 	 	41691-25-5A	 
	 
	 	QCD	 	PT	 	10915	 	DUBUQUE	 	 	 	11	 	89	 	2E	 	GARDNER’S LANE SUB	 	SEE DEED-PT SOLD	 	—	 	—	 	—	 	—	 	 	511686-1.8148	 
	 
	 	WD	 	PT	 	10915	 	DUBUQUE	 	 	 	11	 	89	 	2E	 	GARDNER’S LANE SUB	 	SEE PAGE FROM ABSTR.	 	5/4/1927	 	—	 	97	 	279	 	 	542620-1.8030	 
	 
	 	WD	 	PT	 	14000	 	FARIBAULT	 	 	 	15	 	102	 	27W	 	BLUE EARTH SUBSTATION	 	SEE DEED	 	5/19/48	 	157105	 	112	 	494	 	 	511689-2.3005	 
	 
	 	QCD	 	PT	 	14000	 	FARIBAULT	 	 	 	15	 	102	 	27W	 	BLUE EARTH SUBSTATION	 	SEE DEED	 	5/19/48	 	157104	 	108	 	422	 	 	511689-2.3005-1	 
	 
	 	D	 	PT	 	14000	 	FARIBAULT	 	 	 	15	 	102	 	27W	 	BLUE EARTH SUBSTATION	 	SEE DEED	 	12/8/42	 	142562	 	101	 	323	 	 	542619-2.3001	 
	 
	 	WD	 	PT	 	14041	 	FARIBAULT	 	 	 	13	 	102	 	24W	 	WALTERS SUB	 	SEE DEED	 	8/3/43	 	—	 	101	 	451	 	 	2.3003	 
	 
	 	WD	 	PT	 	14041	 	FARIBAULT	 	 	 	13	 	102	 	24W	 	WALTERS SUB	 	SEE DEED	 	12/7/92	 	281266	 	—	 	—	 	 	511700-2.3020	 
	 
	 	QCD	 	PT	 	14001	 	FILLMORE	 	SPR. VALLEY-MN	 	27	 	103N	 	13W	 	SPRING VALLEY SUB	 	SEE QCD	 	9/7/93	 	275144	 	241	 	1001	 	 	511783-2.4017	 
	 
	 	WD	 	PT	 	14001	 	FILLMORE	 	SPR. VALLEY-MN	 	34	 	103N	 	13W	 	SPRING VALLEY SUB	 	SEE DEED	 	10/27/47	 	134465	 	184	 	354	 	 	542624-2.4011	 
	 
	 	WD	 	PT	 	14009	 	FREEBORN	 	 	 	8	 	102	 	20W	 	HAYWARD SUB & SWITCHING STA.	 	SEE DEED	 	12/19/52	 	157941	 	132	 	313	 	 	511792-2.5011	 
	 
	 	WD	 	PT	 	14009	 	FREEBORN	 	 	 	8	 	102	 	20W	 	HAYWARD SUB & SWITCHING STA.	 	SEE DEED	 	8/1/59	 	187959	 	158	 	455	 	 	511994-2.5025	 
	 
	 	COURT DEED	 	PT	 	10054	 	GRUNDY	 	 	 	35	 	88	 	17	 	GRUNDY CENTER 69kV	 	SEE DEED	 	1/20/66	 	—	 	269	 	218	 	 	97255-38-A	 
	 
	 	WD	 	PT	 	10568	 	GRUNDY	 	 	 	27	 	87N	 	15W	 	REINBECK SUBSTATION	 	SEE DEED	 	12/10/60	 	—	 	251	 	599	 	 	97259-38-4	 
	 
	 	WD	 	PT	 	10020	 	HANCOCK	 	 	 	33	 	96N	 	25W	 	BRITT 69 KV SUB	 	SEE DEED	 	6/28/49	 	3445	 	—	 	—	 	 	97282-41-1	 
	 
	 	WD	 	PT	 	10020	 	HANCOCK	 	 	 	33	 	96N	 	25W	 	BRITT 69 KV SUB	 	SEE DEED	 	10/28/48	 	3212	 	30	 	565	 	 	 	 
	 
	 	WD	 	PT	 	10020	 	HANCOCK	 	 	 	33	 	96N	 	25W	 	BRITT 69 KV SUB	 	SEE DEED	 	4/12/99	 	99-0834	 	—	 	—	 	 	528688-41-1	 
	 
	 	WD	 	PT	 	10446	 	IOWA	 	MARENGNO	 	25	 	81	 	11W	 	MARENGO SOUTH SUB	 	SEE DEED	 	6/12/29	 	1693	 	28	 	289	 	 	137055-48-1	 
	 
	 	D	 	PT	 	10446	 	IOWA	 	MARENGO	 	25	 	81	 	11W	 	MARENGO SOUTH SUB	 	SEE DEED	 	8/6/14	 	—	 	23	 	242	 	 	137056-48-1	 
	 
	 	WD	 	PT	 	14006	 	JACKSON	 	HERON LAKE	 	17	 	104	 	37W	 	HERON LAKE SUB	 	SEE DEED	 	6/24/47	 	121986	 	164	 	602	 	 	512025-2.7002	 
	 
	 	WD	 	PT	 	14006	 	JACKSON	 	HERON LAKE	 	17	 	104	 	37W	 	HERON LAKE SUB	 	SEE DEED	 	7/10/51	 	129134	 	160	 	188	 	 	512026-2.7003	 
	 
	 	WD	 	PT	 	11104	 	JONES	 	 	 	34	 	85N	 	3W	 	Amber Creamery Substation	 	SEE DEED	 	1/11/06	 	2006-0132	 	 	 	 	 	 	19105.104258	 
	 
	 	WD	 	PT	 	10051	 	LINN	 	 	 	28	 	84N	 	7W	 	HIAWATHA 161/34.5 KV SUB	 	SEE DEED	 	11/4/69	 	17821	 	1438	 	290	 	 	103267-57-55B	 
	 
	 	WD	 	PT	 	10052	 	LINN	 	 	 	28	 	84N	 	7W	 	HIAWATHA 161/115 KV SUB	 	SEE WD	 	11/4/69	 	17821	 	1438	 	290	 	 	103267-57-55B	 
	 
	 	WD	 	PT	 	10052	 	LINN	 	 	 	28	 	84	 	7W	 	HIAWATHA 161/115 KV SUB	 	SEE DEED	 	11/4/69	 	17821	 	1438	 	290	 	 	103267-57-55B	 
	 
	 	WD	 	PT	 	10105	 	LINN	 	CEDAR RAPIDS	 	3	 	82	 	7W	 	PRAIRIE CREEK INDUSTRIAL	 	SEE DEED	 	12/20/96	 	—	 	3429	 	192	 	 	502592-57-87	 
	 
	 	WD	 	PT	 	11082	 	LINN	 	MARION	 	20	 	84	 	6	 	MARION LEWIS FIELDS DIST SUB	 	SEE DEED	 	12/28/04	 	—	 	5870	 	117	 	 	19113.10053	 
	 
	 	WD	 	PT	 	10019	 	MONROE	 	 	 	12	 	73	 	16W	 	BRIDGEPORT 161 KV SUB	 	SEE DEED	 	2/28/56	 	581	 	130	 	521	 	 	19135.105124	 
	 
	 	WD	 	PT	 	10019	 	MONROE	 	 	 	12	 	73	 	16W	 	BRIDGEPORT 161 KV SUB	 	SEE DEED	 	9/17/93	 	445	 	260	 	146	 	 	19135.105124-3	 
	 
	 	WD	 	PT	 	10040	 	MONROE	 	 	 	12	 	73	 	16W	 	EDDYVILLE IND SUBSTATION	 	SEE DEED	 	5/21/93	 	1918	 	256	 	164	 	 	486058-68-2	 
	 
	 	WD	 	PT	 	14020	 	MOWER	 	 	 	18	 	101N	 	15W	 	ADAMS 161/69 KV SUB	 	SEE DEED	 	7/26/65	 	—	 	259	 	214	 	 	512094-2.10020	 
	 
	 	WD	 	PT	 	14020	 	MOWER	 	 	 	7	 	101	 	15W	 	ADAMS 161/69 KV SUB	 	SEE DEED	 	7/26/65	 	—	 	259	 	214	 	 	512094-2.10020	 
	 
	 	WD	 	PT	 	10099	 	OSCEOLA	 	 	 	11	 	99N	 	40W	 	OSCEOLA 69/34.5 KV	 	SEE DEED	 	5/28/68	 	504	 	39	 	608	 	 	106817-72-4	 
	 
	 	WD	 	PT	 	10099	 	OSCEOLA	 	 	 	11	 	99N	 	40W	 	OSCEOLA 69/34.5 KV	 	SEE DEED	 	5/28/68	 	503	 	39	 	607	 	 	106817-72-4	 

November 17, 2007

 

 

EXHIBIT 7, SCHEDULE 7.4 — TRANSMISSION FEE INTERESTS

Primarily Transmission Substations — Reference IPL Schedule 4.4(g)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Recorded	 	 	 	 	 	 	 
	Line	 	 	 	 	 	Property	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Recording	 	Document	 	 	 	 	 	IPL File	 
	No.	 	Fee Int	 	T/PT	 	Code	 	County	 	City	 	Section	 	TWP	 	Range	 	Common Name	 	Legal Description	 	Date	 	Number	 	Book	 	Page	 	Number	 
	 
	 	WD	 	PT	 	10086	 	RINGGOLD	 	 	 	6	 	68	 	29	 	MT. AYR	 	SEE DEED	 	2/5/64	 	—	 	171	 	580	 	 	486077-80-4	 
	 
	 	ABST	 	PT	 	10086	 	RINGGOLD	 	 	 	6	 	68	 	29	 	MT. AYR	 	SEE ABSTRACT PAGE	 	3/24/17	 	—	 	84	 	478	 	 	80-4	 
	 
	 	WD	 	PT	 	14012	 	ROCK	 	MAGNOLIA	 	35	 	103N	 	44W	 	MAGNOLIA N & W SUB	 	SEE WD	 	1/9/56	 	80260	 	39	 	89-90	 	 	512127-2.14004	 
	 
	 	WD	 	PT	 	11079	 	STORY	 	MAXWELL	 	15	 	82	 	22	 	MAXWELL NORTH SUBSTATION	 	SEE DEED	 	12/27/00	 	00-14202	 	—	 	—	 	 	528118-85-20	 
	 
	 	WD	 	PT	 	10120	 	TAMA	 	TOLEDO	 	35	 	84N	 	15W	 	TOLEDO SUBSTATION	 	SEE WD	 	8/14/64	 	4704	 	301	 	625	 	 	109122-86-34A	 
	 
	 	WD	 	PT	 	10120	 	TAMA	 	TOLEDO	 	35	 	84N	 	15W	 	TOLEDO SUBSTATION	 	SEE WD	 	2/17/65	 	1736	 	303	 	389	 	 	109122-86-34A	 
	 
	 	WD	 	PT	 	10269	 	UNION	 	 	 	7	 	72N	 	30W	 	EAST CRESTON SUB	 	SEE WD	 	8/10/76	 	239	 	396	 	108	 	 	486082-88-5	 
	 
	 	WD	 	PT	 	10084	 	VanBUREN	 	MILTON	 	20	 	68N	 	11W	 	MILTON SUBSTATION	 	SEE DEED	 	6/8/72	 	—	 	104	 	389	 	 	109318-89-6	 
	 
	 	WD	 	PT	 	10125	 	WAPELLO	 	 	 	29	 	72	 	13W	 	WAPELLO COUNTY SUB	 	SEE DEED	 	1/15/70	 	000155	 	353	 	265	 	 	488653-90-4	 
	 
	 	WD	 	PT	 	10125	 	WAPELLO	 	 	 	29	 	72	 	13W	 	WAPELLO COUNTY SUB	 	SEE DEED	 	5/25/56	 	04477	 	266	 	28	 	 	488653-90-4	 
	 
	 	WD	 	PT	 	10635	 	WASHINGTON	 	WASHINGTON	 	17	 	75N	 	7W	 	WASHINGTON SUB	 	SEE ABSTRACT PAGE	 	9/21/25	 	—	 	51	 	281	 	 	486152-92-6	 
	 
	 	WO	 	PT	 	10265	 	WAYNE	 	 	 	19	 	69	 	21W	 	ADDITION TO CORYDON SUB	 	SEE DEED	 	9/27/55	 	3111	 	33	 	509	 	 	486217-93-8	 
	 
	 	WD	 	PT	 	10265	 	WAYNE	 	 	 	19	 	69	 	21W	 	CORYDON SUB	 	SEE DEED	 	12/29/47	 	4599	 	82	 	30	 	 	486218-93-8	 
	 
	 	WD	 	PT	 	10926	 	WORTH	 	 	 	30	 	98	 	21W	 	HANLONTOWN SUB	 	SEE DEED	 	7/23/65	 	—	 	30	 	422	 	 	512188-1.6008	 
	 
	 	WD	 	PT	 	10926	 	WORTH	 	 	 	30	 	98	 	21W	 	HANLONTOWN SUB	 	SEE DEED	 	7/17/86	 	—	 	39	 	324	 	 	512189-1.6009	 

November 17, 2007

 

 

Exhibit 8

Metering Specifications

Performance criteria:

	1.	 	Meters shall meet or exceed the latest version of ANSI C12.1 (American National
Standard for Electric Meters Code for Electricity Metering).
	 
	2.	 	Current transformers used for metering shall meet or exceed an accuracy class of 0.3%.
Secondary connected burdens shall not exceed rated burden of any current transformer. Current
transformers shall comply with most current applicable ANSI Standards including C57.13 (IEEE
Standard Requirements for Instrument Transformers) and C12.ll (Instrument Transformers for
Revenue Metering 10KV BIL through 350 KV BIL). Local Distribution Company shall comply with
the manufacturer’s accuracy and burden class information on the nameplate of each device.
	 
	3.	 	Voltage transformers used for metering shall meet or exceed an accuracy class of 0.3%.
Secondary connected burdens shall not exceed rated burden of any voltage transformer. Voltage
transformers shall comply with most current applicable ANSI Standards including C57.13 (IEEE
Standard Requirements for Instrument Transformers), C12.11 (Instrument Transformers for
Revenue Metering 10KV BIL through 350 KV BIL), and C93.1 (Power Line Coupling Carrier
Capacitors and Coupling Capacitor Voltage Transformers (CCVT)). Local Distribution Company
shall comply with the manufacturer’s accuracy and burden class information on the nameplate of
each device.

 

 

Exhibit 9

Dispute Resolution Procedures

Section 1.1 When Required

     Any Dispute subject to this Exhibit that has not been resolved through the informal or
mediation procedures specified herein shall be resolved by arbitration in accordance with the
procedures specified herein; provided, however, that unless both Parties agree to
arbitrate, (a) any dispute subject to the jurisdiction of any regulatory authority shall only be
heard by such regulatory authority, and (b) any dispute wherein one Party seeks an injunction or
other equitable relief shall be heard only by a court having jurisdiction over the matter.

Section 1.2 Initiation

     (a) A Party to a Dispute that wishes to commence arbitration proceedings shall send a written
demand for arbitration to an officer or managing or general agent (or other agent authorized by
appointment or law to receive service of process) of the other Party. The demand for arbitration
shall state each claim for which arbitration is being demanded, the relief being sought, a brief
summary of the grounds for such relief, and the basis for the claim, and shall identify all other
parties to the dispute.

     (b) Any Party receiving such notice may, if the proviso in Section 1.1 is applicable, notify
the other Party within 14 days of receiving the demand for arbitration, that it intends to have the
matter heard by a regulatory or judicial authority and shall thereafter have a further 60 days in
which to make the necessary filing to commence proceedings at such regulatory or judicial
authority. If the filing necessary to commence proceedings before such regulatory or judicial
authority is not made within the foregoing 60-day period, then the Party seeking to invoke
jurisdiction of a regulatory authority shall be deemed to have consented to arbitration, and the
Dispute shall revert to arbitration.

Section 1.3 Selection of Arbitrator

     The Parties agree that arbitration initiated under this Agreement shall be conducted before a
single neutral arbitrator appointed by the parties. If the Parties are unable to agree on an
arbitrator, such arbitrator shall be appointed from a panel of knowledgeable arbitrators provided
to the parties by the American Arbitration Association. The selection of the arbitrator and the
arbitration process shall then proceed according to the Commercial Dispute Rules of the American
Arbitration Association.

Section 1.4 Procedures

     The Parties shall compile and make available to the arbitrator and the Parties standard
procedures for the arbitration of disputes (i) from the American Arbitration Association, (ii) as
mutually agreed by the Parties, or (iii) as the arbitrator deems appropriate. Upon selection of the
arbitrator, arbitration shall go forward in accordance with applicable procedures.

9-1

 

Section 1.5 Summary Disposition and Interim Measures

     (a) The procedures for arbitration of a Dispute shall provide a means for summary disposition
of a demand for arbitration, or response to a demand for arbitration, that in the reasoned opinion
of the arbitrator does not have a good faith basis either in law or fact. If the arbitrator
determines that a demand for arbitration, or response to a demand for arbitration, does not have a
good faith basis either in law or fact, the arbitrator shall have discretion to award the costs of
the time, expenses, and other charges of the arbitrator to the prevailing Party.

     (b) The procedures for the arbitration of a Dispute shall provide a means for summary
disposition without discovery if there is no dispute as to any material fact, or with such limited
discovery as the arbitrator shall determine is reasonably likely to lead to the prompt resolution
of any disputed issues of material fact.

     (c) The procedures for arbitration of a Dispute shall permit any Party to a Dispute to request
that the arbitrator render a written interim decision requiring that any action or decision that is
the subject of a Dispute either be, or not be, put into effect, or imposing such other interim
measures as the arbitrator deems necessary or appropriate. The arbitrator may grant or deny, in
whole or in part, a request for such a written interim decision. The Parties shall be bound by any
such written decision pending the outcome of the arbitration proceeding.

Section 1.6 Discovery of Facts

     (a) The arbitration procedures for the resolution of a Dispute shall include adequate
provision for the discovery of relevant facts, including the taking of testimony under oath,
production of documents and things, and inspection of land and tangible items. The nature and
extent of such discovery shall be determined as provided herein and shall take into account (i) the
complexity of the dispute, (ii) the extent to which facts are disputed, and (iii) the amount of
money in controversy.

     (b) The arbitrator shall be responsible for establishing the timing, amount, and means of
discovery, and for resolving discovery and other pre-hearing disputes. If a Dispute involves
contested issues of fact, promptly after the selection of the arbitrator, the arbitrator shall
convene a meeting of the parties for the purpose of establishing a schedule and plan of discovery
and other pre-hearing actions.

Section 1.7 Evidentiary Hearing

     The procedures established by the arbitrator shall provide for an evidentiary hearing, with
provision for the cross-examination of witnesses, unless both Parties consent to the resolution of
the matter on the basis of a written record. The forms and methods for taking evidence shall be as
agreed by the Parties, or if the Parties cannot agree, as established by the arbitrator. The
arbitrator may require such written or other submissions from the Parties as shall be deemed
appropriate, including submission of the direct testimony of witnesses in written form. The
arbitrator may exclude any evidence that is irrelevant, immaterial, or unduly repetitious, and,
except to the extent hereinafter otherwise provided, shall exclude any material that is covered by
the attorney-client privilege, the accountant-client privilege, other evidentiary privileges, or
the attorney-work product doctrine. One or both Parties may arrange for the preparation of a record

9-2

 

of the hearing and, except to the extent otherwise provided, shall pay the costs thereof. Such
Party or Parties shall have no obligation to provide, or to agree to the provision of, a copy of
the record of the hearing to any Party that does not pay a proportionate share of the cost of the
record. At the request of any Party, the arbitrator shall determine a fair and equitable allocation
of the cost of the preparation of a record between or among the Parties to the proceeding who are
willing to share such costs.

Section 1.8 Confidentiality

     (a) Any information requested from another Party in the course of an arbitration proceeding,
and not otherwise available to the receiving Party, including any such information contained in
documents or other means of recording information created during the course of the proceeding, may
be designated “Confidential” by the producing Party to the extent that such information is of a
proprietary nature. The Party designating documents or other information as “Confidential” shall
have 20 days from the request for such material to submit a request to the arbitrator to establish
such requirements for the protection of such documents or other information designated as
“Confidential” as may be reasonable and necessary to protect the confidentiality and commercial
value of such information and the rights of the Parties. Prior to the decision of the arbitrator on
a request for confidential treatment, documents or other information designated as “Confidential”
need not be produced. “Confidential” information shall not be used by the arbitrator, or anyone
working for or on behalf of any of the foregoing, for any purpose other than the arbitration
proceeding, and shall not be disclosed in any form to any Person not involved in the arbitration
proceeding without the prior written consent of the Party producing the information, or as
permitted by the arbitrator or as required by law.

     (b) Any Person receiving a request or demand for disclosure, whether by compulsory process,
discovery request, or otherwise, of documents or information obtained in the course of an
arbitration proceeding that have been designated “Confidential” and that are subject to a non-disclosure requirement under this Exhibit, or that are subject to a decision of the arbitrator,
shall immediately inform the Person from which the information was obtained, and shall take all
reasonable steps to afford the Person from which the information was obtained an opportunity to
protect the information from disclosure. In the event the requesting Party discloses information in
violation of this Exhibit or requirements established by the arbitrator shall be deemed to waive
any right to introduce or otherwise use such information in any judicial, regulatory, or other
legal or dispute resolution proceeding, including the proceeding in which the information was
obtained.

     (c) Nothing in this Exhibit shall preclude any Person from using documents or information
properly and previously obtained outside of an arbitration proceeding, or otherwise public, for any
legitimate purpose, notwithstanding that the information was also obtained in the course of the
arbitration proceeding.

Section 1.9 Timetable

     Promptly after the selection of the arbitrator, the arbitrator shall set a date for
resolution of the dispute, which shall be not later than eight months (or such earlier date as
may be agreed to by the parties) from the date of the selection of the arbitrator, with other
dates, including the

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dates for an evidentiary hearing, or other final submissions of evidence, set in light of this
date. The date for the evidentiary hearing, or other final submission of evidence, shall not be
changed absent extraordinary circumstances. The arbitrator shall have the power to impose
sanctions for dilatory tactics or undue delay in completing the arbitration proceedings.

Section 1.10 Decisions

     The arbitrator shall issue either an oral decision that is transcribed or a written decision,
which may, at the arbitrator’s discretion, include findings of fact. The arbitration decision shall
be based on (i) the evidence in the record, (ii) the relevant agreements between the Parties, (iii)
applicable federal and state legal standards, including the FPA and any applicable state and FERC
regulations and decisions and (iv) relevant decisions in previous arbitration proceedings under
this Agreement. All decisions of the arbitrator shall be shall be subject to any applicable
confidentiality provisions, and shall be made available on request, to the Parties and to federal
and state regulatory authorities. Any arbitration decision that affects matters subject to the
jurisdiction of the FERC under section 205 or section 206 of the FPA shall be filed with the FERC
and any arbitration decision that affect matters subject to the jurisdiction of a state authority
shall be filed with that authority.

Section 1.11 Costs

     Unless the arbitrator shall decide otherwise, the costs of the time, expenses, and other
charges of the arbitrator shall be borne by the parties to the dispute, with each side on an
arbitrated issue bearing one-half of such costs, and each Party to an arbitration proceeding shall
bear its own costs and fees. The arbitrator may require all of the costs of the time, expenses, and
other charges of the arbitrator, plus all or a portion of the costs of arbitration, attorneys’
fees, and the costs of mediation, if any, to be paid by any Party that substantially loses on an
issue determined by the arbitrator to have been raised without a substantial basis.

Section 1.12 Enforcement

     The decision of the arbitrator shall be final, binding and not appealable, except to the
extent reviewable by FERC (as permitted or required by law). Any party may petition any state or
federal court having jurisdiction to enter judgment upon the arbitration award.

Section 1.13 Regulatory Jurisdiction

     If a Party fails to invoke regulatory jurisdiction of a dispute involving matters subject to
FERC or state regulatory jurisdiction within 60 days in accordance with Section 1.2 of this
Exhibit, the Party shall be deemed to have waived its right to invoke such jurisdiction;
provided, however, that this waiver only applies to the Party and does not affect any right
that the FERC or state regulatory authority may have to act on its own. If such Party nonetheless
invokes FERC or applicable state regulatory jurisdiction following the arbitration proceedings
provided for herein, that Party shall be responsible for all attorneys’ fees incurred by other
parties to the Dispute, whether or not the FERC or state regulatory authority concludes that such
Party has waived its right to invoke FERC or state regulatory jurisdiction.

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Exhibit 10

Reserved

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