Document:

Exhibit 10.1

 

	
CONFIDENTIAL
    	
EXECUTION VERSION
    

 

STOCKHOLDERS’ AGREEMENT

 

dated as of

 

June 7, 2018

 

by and among

 

ALTICE USA, INC.,

 

NEXT ALT S.À R.L.

 

and

 

A4 S.A.

 

 

TABLE OF CONTENTS

 

	
 
    	
Page
    
	
ARTICLE I
    	
 
    
	
 
    	
 
    
	
DEFINITIONS
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Section 1.1
    	
 
    	
Certain Definitions
    	
2
    
	
Section 1.2
    	
 
    	
Other Terms
    	
5
    
	
ARTICLE II
    	
 
    
	
 
    	
 
    
	
CORPORATE GOVERNANCE MATTERS
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Section 2.1
    	
 
    	
Board Composition
    	
6
    
	
Section 2.2
    	
 
    	
Director Nomination Rights
    	
6
    
	
Section 2.3
    	
 
    	
Board Observer Rights
    	
7
    
	
Section 2.4
    	
 
    	
Next Alt Agreement to Vote
    	
8
    
	
ARTICLE III
    	
 
    
	
 
    	
 
    
	
APPROVAL AND CONSENT RIGHTS
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Section 3.1
    	
 
    	
Approval and Consent Rights
    	
8
    
	
Section 3.2
    	
 
    	
Significant Action Notification
    	
10
    
	
ARTICLE IV
    	
 
    
	
 
    	
 
    
	
MISCELLANEOUS
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Section 4.1
    	
 
    	
Corporate Power; Fiduciary Duty
    	
11
    
	
Section 4.2
    	
 
    	
Related Party Transactions
    	
11
    
	
Section 4.3
    	
 
    	
Expenses
    	
11
    
	
Section 4.4
    	
 
    	
Governing Law
    	
11
    
	
Section 4.5
    	
 
    	
Waiver of Jury Trial
    	
12
    
	
Section 4.6
    	
 
    	
Notices
    	
12
    
	
Section 4.7
    	
 
    	
Severability
    	
13
    
	
Section 4.8
    	
 
    	
Entire Agreement
    	
13
    
	
Section 4.9
    	
 
    	
Term and Termination
    	
13
    
	
Section 4.10
    	
 
    	
Assignment; No Third-Party   Beneficiaries
    	
13
    
	
Section 4.11
    	
 
    	
Amendment; Waiver
    	
14
    
	
Section 4.12
    	
 
    	
Specific Performance
    	
14
    
	
Section 4.13
    	
 
    	
Interpretations
    	
14
    
	
Section 4.14
    	
 
    	
Mutual Drafting
    	
15
    
	
Section 4.15
    	
 
    	
Counterparts; Electronic   Transmission of Signatures
    	
15
    

 

 

STOCKHOLDERS’ AGREEMENT

 

STOCKHOLDERS’ AGREEMENT, dated June 7, 2018 and which shall be effective simultaneously with the consummation of the Distribution (as defined below) (this “Agreement”), by and among Altice USA, Inc., a Delaware corporation (the “Company”), Next Alt S.à r.l., a Luxembourg private company with limited liability (“Next Alt”), and A4 S.A., a Luxembourg public limited liability company controlled by the family of Patrick Drahi (“A4”).  Each of the Company, Next Alt and A4 are referred to herein as a “Party” and together as the “Parties”.

 

W I T N E S S E T H:

 

WHEREAS, in connection with the initial public offering (the “IPO”) of shares of Class A common stock of the Company, par value $0.01 (“Class A Common Stock”), the Company, A4 and Altice N.V., a Dutch public company with limited liability (naamloze vennootschap) (“Altice N.V.”), entered into that certain Stockholders’ Agreement, dated June 27, 2017 (the “Prior SHA”);

 

WHEREAS, on January 8, 2018, Altice N.V. announced that it intended to effect a separation of the Company and Altice N.V. (the “Separation”) by means of a pro rata distribution in kind of substantially all of the shares of the Company owned directly or indirectly by Altice N.V. to the Altice N.V. shareholders (the “Distribution”);

 

WHEREAS, in connection with the Separation, the Company, A4 and Altice N.V. will terminate the Prior SHA effective as of the consummation of the Distribution;

 

WHEREAS, Next Alt, immediately following the consummation of the Distribution, will own 62,369,305 shares of Class A Common Stock and 182,883,414 shares of Class B common stock of the Company, par value $0.01 (“Class B Common Stock”), and A4 owns 1,000 shares of Class A Common Stock and 1,000 shares of Class B Common Stock, which, in the aggregate, will represent 69.36% of the voting power of the issued and outstanding Company Common Stock; and

 

WHEREAS, the Company, Next Alt and A4 desire to set forth certain agreements that will govern the relationship between them as from the consummation of the Distribution.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the Parties hereby agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

Section 1.1                                    Certain Definitions.  For purposes of this Agreement, the following terms shall have the meanings specified in this Section 1.1:

 

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“A4 Group” means A4 and each Person that is an Affiliate of A4.

 

“Action” means any demand, action, claim, dispute, suit, countersuit, arbitration, inquiry, proceeding or investigation by or before any Governmental Entity or any arbitration or mediation tribunal.

 

“Affiliate” means, as to any Person, any other Person which, directly or indirectly, controls, or is controlled by, or is under common control with, such Person; provided, however, that none of the Company and its Subsidiaries shall be considered an Affiliate of a member of the PDR Group for purposes of this Agreement.

 

“beneficially own” means, with respect to Company Common Stock, having “beneficial ownership” of such stock for purposes of Rule 13d-3 or 13d-5 promulgated under the Exchange Act, without giving effect to the limiting phrase “within sixty days” set forth in Rule 13d-3(1)(i), including, for the avoidance of doubt, any shares of Company Common Stock over which a Person has a right to vote, through voting agreement, proxy or otherwise.  The terms “beneficial owner”, “beneficial ownership” and “beneficially owned” shall have correlative meanings.

 

“Bylaws” means the Amended and Restated Bylaws of the Company, as amended from time to time in accordance with the terms thereof and this Agreement.

 

“Change of Control” means (a) the sale, lease, conveyance, disposition, in one or a series of related transactions (other than a merger or consolidation), of all or substantially all of the assets of the Company and its Subsidiaries, taken as a whole, to any Person or group of Persons (other than a member or members of the PDR Group) or (b) a merger, reorganization, recapitalization, combination or consolidation of, or any other transaction (including the purchase of the Company Securities) involving, the Company with any other Person after which a member or members of the PDR Group cease to beneficially own fifty percent (50%) or more of the voting power of the Company or the surviving entity in such transaction, as the case may be.

 

“Charter” means the Second Amended and Restated Certificate of Incorporation of the Company, as amended from time to time in accordance with the terms thereof and this Agreement.

 

“Company Board” means the board of directors of the Company.

 

“Company Common Stock” means, collectively, (i) the Class A Common Stock, (ii) the Class B Common Stock, (iii) the Class C common stock of the Company, par value $0.01, and (iv) any equity interest into which such shares of common stock set forth in clauses (i), (ii) or (iii) shall have been changed, or any equity interest resulting from any reclassification, recapitalization, reorganization, merger, consolidation, conversion, stock or other equity split or dividend or similar transactions with respect to such shares of common stock.

 

“Company Securities” means (i) the Company Common Stock, (ii) any preferred stock of the Company, (iii) any other common stock issued by the Company and (iv) any

 

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securities convertible into or exchangeable for, or options, warrants or other rights to acquire, Company Common Stock or any other common or preferred stock issued by the Company.

 

“control” (including the terms “controlled by” and “under common control with”), with respect to the relationship between or among two or more Persons, means the possession, directly or indirectly or as trustee, personal representative or executor, of the power to direct or cause the direction of the affairs or management of a Person, whether through the ownership of voting securities, as trustee, personal representative or executor, by contract or otherwise.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, together with the rules and regulations promulgated thereunder.

 

“Expiration Date” means the first date on which the PDR Group, in the aggregate, ceases to beneficially own at least twenty percent (20%) of the voting power of the outstanding Company Common Stock.

 

“Governmental Entity” means any United States federal, state or local, or foreign, international or supranational, government, court or tribunal, or administrative, executive, governmental or regulatory or self-regulatory body, agency or authority thereof.

 

“Independent Director” means a director who is independent under the New York Stock Exchange listing rules.

 

“Law” means any federal, state or local law (statutory, common or otherwise), constitution, treaty, convention, ordinance, code, rule, regulation, order, injunction, judgment, decree, ruling or other similar requirement enacted, adopted, promulgated or applied by a Governmental Entity.

 

“Next Alt Group” means Next Alt and each Person that is an Affiliate of Next Alt.

 

“Organizational Documents” means the Charter and the Bylaws.

 

“PDR Group” means (i) Next Alt, (ii) each member of the Next Alt Group, (iii) A4, (iv) each member of the A4 Group, (v) Patrick Drahi, his heirs or entities or trusts directly or indirectly under his or their control or formed for his or their benefit, and (vi) any Affiliate of Patrick Drahi, his heirs or entities or trusts directly or indirectly under his or their control or formed for his or their benefit.

 

“Person” means an individual, corporation, partnership, joint venture, association, trust, unincorporated organization, limited liability company, Governmental Entity or other entity.

 

“Related Party Transactions Policy” means the Related Party Transaction Policy of the Company in effect on the date hereof and as such policy may be amended or modified following the date hereof in accordance with the terms thereof and this Agreement.

 

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“Stepdown Date” means a date on which the PDR Group, in the aggregate, ceases to beneficially own at least fifty per cent (50%) of the voting power of the outstanding Company Common Stock.

 

“Step-up Date” means a date on which, following the occurrence of a Stepdown Date, the PDR Group, in the aggregate, regains beneficial ownership of at least fifty per cent (50%) of the voting power of the outstanding Company Common Stock.

 

“Subsidiary” of any specified Person means any other Person of which such first Person owns (either directly or through one or more other Subsidiaries) voting securities or other voting ownership interests sufficient, together with any contractual rights, to elect at least a majority of the board of directors or other governing body of such Person (or, if there are no such voting interests, 50% or more of the equity interests of which is owned directly or indirectly by such first Person).

 

Section 1.2                                    Other Terms.  For purposes of this Agreement, the following terms have the meanings set forth in the sections indicated.

 

	
Term
    	
 
    	
Section
    
	
Agreement
    	
 
    	
Preamble
    
	
A4
    	
 
    	
Preamble
    
	
A4-Next Alt Designee
    	
 
    	
Section 2.2(a)
    
	
A4-Next Alt Director
    	
 
    	
Section 2.1(b)
    
	
Altice N.V.
    	
 
    	
Recitals
    
	
CEO
    	
 
    	
Section 3.1(i)
    
	
CFO
    	
 
    	
Section 3.1(i)
    
	
Class A Common Stock
    	
 
    	
Recitals
    
	
Class B Common Stock
    	
 
    	
Recitals
    
	
Company
    	
 
    	
Preamble
    
	
COO
    	
 
    	
Section 3.1(i)
    
	
Distribution
    	
 
    	
Recitals
    
	
IPO
    	
 
    	
Recitals
    
	
Next Alt
    	
 
    	
Preamble
    
	
Next Alt Designee
    	
 
    	
Section 2.2(a)
    
	
Next Alt Director
    	
 
    	
Section 2.1(a)
    
	
Observer
    	
 
    	
Section 2.3(a)
    
	
Party
    	
 
    	
Preamble
    
	
Prior SHA
    	
 
    	
Recitals
    
	
Separation
    	
 
    	
Recitals
    
	
Significant Action
    	
 
    	
Section 3.1
    
	
Significant Action Notice
    	
 
    	
Section 3.2
    

 

5

 

ARTICLE II

 

CORPORATE GOVERNANCE MATTERS

 

Section 2.1                                    Board Composition.

 

(a)                                 As of the date hereof, the Company Board consists of nine (9) members comprised of (i) four (4) director designees of Next Alt (collectively, with their successors and those two (2) director designees selected by Next Alt to fill the vacancies identified in subsection (iii) of this Section 2.1(a) and their successors, the “Next Alt Directors”), (ii) three (3) directors that are Independent Directors designated by the Company and reasonably acceptable to Next Alt and (iii) two (2) vacancies that will be filled by director designees of Next Alt. From and after the date hereof, subject to Section 2.2, the Company shall cause the Company Board to consist of a majority of Next Alt Directors.

 

(b)                                 Next Alt and A4 agree that one Next Alt Director shall, at all times, be designated by A4 (such Next Alt Director, the “A4-Next Alt Director”).

 

Section 2.2                                    Director Nomination Rights.

 

(a)                                 Until a Stepdown Date and, in the event of a Stepdown Date, from and after any Step-up Date until any subsequent Stepdown Date or the Expiration Date, in connection with any annual or special meeting of the stockholders of the Company at which directors shall be elected, Next Alt shall have the right to designate the number of directors specified in Section 2.1(a)(i) and Section 2.1(a)(iii) for nomination by the Company Board for election to the Company Board (the “Next Alt Designees”).  From a Stepdown Date until the earlier of a Step-up Date or the Expiration Date, Next Alt shall have the right to designate a number of Next Alt Designees equal to the total number of directors comprising the entire Company Board multiplied by the percentage of the voting power of the outstanding Company Common Stock beneficially owned, in the aggregate, by the PDR Group, rounding up in the case of any resulting fractional number of Next Alt Designees; provided that, at all times that Next Alt is entitled to designate at least one Next Alt Designee, at least one Next Alt Designee shall be designated by A4 (such Next Alt Designee the “A4-Next Alt Designee”); provided, however, notwithstanding anything to the contrary in this sentence, from a Stepdown Date until any Step-up Date, Next Alt shall not have the right to designate a number of Next Alt Designees equal to or exceeding 50% of directors comprising the entire Company Board.  Until the Expiration Date, Next Alt and A4, as applicable, shall have full authority and ability to nominate, elect and remove the Next Alt Designees; provided, however, that in no event shall Next Alt cause the A4-Next Alt Designee to be removed without the prior written consent of A4.  Neither Next Alt nor A4, as applicable, shall designate any person to be a Next Alt Designee who it believes does not meet the requirements for director nominees as set forth in the applicable policies of the Company relating to director qualification from time to time.  For the avoidance of doubt, current or former employment of any Next Alt Designee by Next Alt or any of its Subsidiaries or Affiliates or service by any such Next Alt Designee on the board of directors (or equivalent body) of Next Alt or any of its Subsidiaries or Affiliates shall not automatically disqualify such individual from serving on the Company Board as a Next Alt Designee.

 

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(b)                                 The Company shall cause each Next Alt Designee to be included in the slate of nominees recommended by the Company Board to holders of Company Common Stock for election (including at any special meeting of stockholders held for the election of directors) and shall use its best efforts to cause the election of each such Next Alt Designee.

 

(c)                                  Until the Expiration Date, in the event that any Next Alt Director (including the A4-Next Alt Director) shall cease to serve as a director for any reason (whether as a result of resignation (other than a resignation in accordance with Section 2.2(d)), removal or incapacity), then (i) in the case of a Next Alt Director (other than the A4-Next Alt Director), Next Alt will designate a substitute Next Alt Designee to fill such vacancy and (ii) in the case of the A4-Next Alt Director, A4 will designate a substitute A4-Next Alt Designee to fill such vacancy.

 

(d)                                 From a Stepdown Date until the earlier of a Step-up Date or the Expiration Date, Next Alt shall cause such number of Next Alt Directors then serving on the Company Board to resign from the Company Board (such resigning Next Alt Director to be replaced by nominees chosen by the Independent Directors) as is necessary so that the remaining number of Next Alt Directors then serving on the Board is equal to the number of Next Alt Designees that Next Alt is then entitled to designate for nomination pursuant to Section 2.2(a); provided, however, that in no event shall Next Alt cause the A4-Next Alt Director to resign without the prior written consent of A4.  Any resignation of a Next Alt Designee required to give effect to this Section 2.2(d) will comply with the applicable rules of the New York Stock Exchange; provided that, for the avoidance of doubt, any such resignation need not be effective until the next annual meeting of the stockholders of the Company.

 

Section 2.3                                    Board Observer Rights.

 

(a)                                 In the event Patrick Drahi is not a member of the Company Board, until the Expiration Date, the Company shall permit one (1) representative of the PDR Group (the “Observer”) (i) to attend all (whether in person, telephonic or otherwise) of the meetings of the Company Board in a non-voting, observer capacity and (ii) to attend all meetings (whether in person, telephonic or otherwise) of any committee of the Company Board in a non-voting, observer capacity.  In addition, the Company shall provide to the Observer, concurrently with the members of the Company Board or the committees thereof, as applicable, and in the same manner, notice of such meeting and a copy of all materials provided to such members, including all materials provided to such members in connection with any action to be taken by the Company Board or the committees thereof, as applicable, without a meeting.

 

(b)                                 The Company shall use commercially reasonable efforts to have the Observer covered by the Company’s existing director and officer indemnity insurance on the same terms and conditions as such director and officer indemnity insurance provides for the coverage of any other persons covered thereby.

 

(c)                                  The Company shall indemnify the Observer to the same extent as a director under Article VII of the Charter, and the provisions thereof shall to the fullest extent possible apply mutatis mutandis to the Observer.

 

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(d)                                 The Company shall reimburse the Observer for all reasonable and documented out-of-pocket expenses incurred in connection with the Observer’s attendance at meetings of the Company Board and any committees thereof, including travel, lodging and meal expenses.  All reimbursements payable by the Company pursuant to this Section 2.3 shall be paid to the Observer in accordance with the Company’s policies and practices with respect to director expense reimbursement then in effect.

 

Section 2.4                                    Next Alt Agreement to Vote.

 

(a)                                 Until the Expiration Date, Next Alt shall, and shall cause each of its Affiliates to, cause the shares of Company Common Stock beneficially owned by members of the Next Alt Group to (i) be present for quorum purposes at any meeting of the stockholders of the Company, (ii) vote in favor of the A4-Next Alt Designee and (iii) not vote in favor of the removal of the A4-Next Alt Director unless A4 shall have consented to such removal in writing; provided that if A4 shall request in writing the removal, with or without cause, of the A4-Next Alt Director, Next Alt shall, and shall cause each of its Affiliates to, vote all of the shares of Company Common Stock beneficially owned by members of the Next Alt Group that are entitled to vote in favor of such removal as promptly as practicable and take promptly all other actions to effect the foregoing.

 

(b)                                 If requested in writing by A4 to remove the A4-Next Alt Director, Next Alt shall either (i) promptly cause the Company to call a special meeting of the stockholders of the Company and Next Alt shall, and shall cause each of its Affiliates to, vote the shares of Company Common Stock beneficially owned by members of the Next Alt Group in favor of (A) the removal of the A4-Next Alt Director and (B) the election of A4-Next Alt Designee identified in such notice or (ii) promptly deliver a written consent to the Company removing the A4-Next Alt Director and electing the A4-Next Alt Designee identified in such notice.

 

(c)                                  Next Alt hereby appoints during the term of this Agreement A4 (and, upon an assignment of this Agreement by A4, such permitted assignee of A4) and any designee of A4, and each of them individually, its proxies and attorneys-in-fact, with full power of substitution and resubstitution, to vote the shares of Company Common Stock beneficially owned by Next Alt at any meeting of stockholders of the Company (or acting by written consent in lieu of a meeting), in accordance with the agreements contained in this Section 2.4. This proxy and power of attorney is given to secure the performance by Next Alt of the agreements contained in this Section 2.4. Next Alt shall take such further action or execute such other instruments as may be necessary to effectuate the intent of this proxy.  This proxy and power of attorney granted by Next Alt shall be irrevocable during the term of this Agreement, shall be deemed to be coupled with an interest sufficient in law to support an irrevocable proxy and shall revoke any and all prior proxies granted by Next Alt with respect to the shares of Company Common Stock beneficially owned by Next Alt. The power of attorney granted by Next Alt herein is a durable power of attorney and shall survive the dissolution or bankruptcy of Next Alt.  The proxy and power of attorney granted hereunder shall terminate upon the termination of this Agreement.

 

ARTICLE III

 

APPROVAL AND CONSENT RIGHTS

 

Section 3.1                                    Approval and Consent Rights.  Until the Expiration Date,

 

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notwithstanding anything to the contrary herein or in the Organizational Documents or in the governing documents of any of the Subsidiaries of the Company, without the prior written approval of Next Alt, the Company shall not (either directly or indirectly through an Affiliate or otherwise or through one or a series of related transactions) take, or permit a Subsidiary of the Company to take, any of the following actions (each, a “Significant Action”):

 

(a)                                 effect or consummate a Change of Control or publicly endorse a Change of Control (including by recommending any tender or exchange offer that would result in a Change of Control) or enter into any agreement or arrangement to effect or consummate a Change of Control;

 

(b)                                 make any material change in the scope of the Company’s or its Subsidiaries’ business from the scope of the Company’s or its Subsidiaries’ business immediately prior to the date of this Agreement;

 

(c)                                  acquire, dispose of or spin off any securities, assets or liabilities other than acquisitions or dispositions of assets or liabilities in the ordinary course of business consistent with past practice;

 

(d)                                 enter into any joint venture, recapitalization, reorganization or other strategic alliance with any other Person;

 

(e)                                  issue any Company Securities, except issuances pursuant to a compensation or similar plan approved by the Company Board or a duly authorized committee thereof;

 

(f)                                   incur, guarantee, assume, or refinance any indebtedness for borrowed money having a principal amount greater than $10 million (including debt obligations of any other Person existing at the time such other Person merged with or into or became a Subsidiary of, or substantially all of its business and assets were acquired by, the Company or a Subsidiary of the Company, and debt obligations secured by a lien encumbering any asset acquired by the Company or any such Subsidiary and including debt securities) or pledge or grant a security interest in any of the Company’s or its Subsidiaries’ assets having a value of more than $10 million (other than debt obligations incurred in the ordinary course of business by the Company and its Subsidiaries), or enter into any derivative transactions involving a notional amount greater than $10 million;

 

(g)                                  redeem, repurchase or otherwise acquire Company Common Stock or any warrants, options, rights or securities convertible into, exchangeable for or exercisable for, Company Common Stock, or redeem, repurchase or otherwise acquire or make any payment with respect to any share appreciation rights or phantom share plans (other than repurchases of Company Common Stock from employees upon termination of employment pursuant to terms of duly approved equity grants or pursuant to a cashless exercise of equity grants) or any re-pricing of duly approved equity awards;

 

(h)                                 amend (or approve or recommend amendment of) the Company’s or any of the Company’s Subsidiaries’ certificates of incorporation or bylaws (or other similar organizational documents);

 

9

 

(i)            elect, hire, replace or dismiss, or establish or modify the remuneration of, the Chief Executive Officer of the Company (or the equivalent successor position) (such person, the “CEO”), Chief Financial Officer of the Company (or the equivalent successor position) (such person, the “CFO”), or Chief Operating Officer of the Company (or the equivalent successor position) (such person, the “COO”), in each case, as elected or appointed by the Company Board;

 

(j)            elect, hire, replace or dismiss, or establish or modify the remuneration of, any officer of the Company that directly reports to the CEO, CFO or COO;

 

(k)           establish or modify the remuneration of directors on the Company Board;

 

(l)            decrease or increase the number of directors serving on the Company Board;

 

(m)          approve (or adopt) any operating and capital budgets of the Company for each fiscal year commencing with the fiscal year ended December 31, 2018, or any material amendments thereto or deviations therefrom;

 

(n)           pay, declare or set aside any sums or other property for the payment of dividends on any Company Common Stock or make any other distributions in respect of any Company Common Stock or any warrants, options, rights or securities convertible into, exchangeable for or exercisable for, Company Common Stock;

 

(o)           other than as required by applicable Law, form, or delegate authority to, any new committee, or subcommittee thereof, of the Company Board, or delegate authority to any existing committee or subcommittee thereof not set forth in the committee’s charter or authorized by the Company Board prior to the date of this Agreement;

 

(p)           commence any liquidation, dissolution or voluntary bankruptcy, administration, recapitalization or reorganization in any form of transaction, make arrangements with creditors, or consent to the entry of an order for relief in any involuntary case, or take the conversion of an involuntary case to a voluntary case, or consent to the appointment of or take possession by a receiver, trustee or other custodian for all or substantially all of its or its Subsidiaries’ property, or otherwise seek the protection of any applicable bankruptcy or insolvency law;

 

(q)           amend, modify or supplement (or approve or recommend amendment, modification or supplement of) the Related Party Transactions Policy; and

 

(r)            enter into any agreement or arrangement to do any of the foregoing.

 

Section 3.2            Significant Action Notification.  In the event the Company wishes to take, or to cause a Subsidiary of the Company to take, a Significant Action, then the Company shall submit a written request (a “Significant Action Notice”) to Next Alt to approve such Significant Action at least 15 days (or such shorter period as approved in writing (including by email) by the Chairman of the board of managers of Next Alt) prior to the date on which the

 

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Company wishes for such Significant Action to be effected.  A Significant Action Notice shall set forth in reasonable detail the material terms of the Significant Action to be undertaken and include any other information reasonably necessary in order to enable Next Alt to make an informed decision with respect to such Significant Action.

 

ARTICLE IV

 

MISCELLANEOUS

 

Section 4.1            Corporate Power; Fiduciary Duty.

 

(a)           The Company represents on behalf of itself, Next Alt represents on behalf of itself and A4 represents on behalf of itself, as follows:

 

(i)            each such Person has the requisite corporate or other power and authority and has taken all corporate or other action necessary in order to execute, deliver and perform this Agreement and to consummate the transactions contemplated hereby; and

 

(ii)           this Agreement has been duly executed and delivered by it and constitutes a valid and binding agreement of it enforceable in accordance with the terms thereof.

 

(b)           Notwithstanding any provision of this Agreement, none of the Company, Next Alt or A4 shall be required to take or omit to take any act that would violate its fiduciary duties to any minority stockholders of the Company or any non-wholly-owned Subsidiary of Next Alt, A4 or the Company, as the case may be (it being understood that directors’ qualifying shares or similar interests will be disregarded for purposes of determining whether a Subsidiary is wholly owned).

 

Section 4.2            Related Party Transactions.  All Related Party Transactions (as defined in the Related Party Transactions Policy) shall be governed by the Related Party Transactions Policy. Any amendments to or modifications or terminations of or material waivers, consents or elections under any Related Party Transactions, shall require the consent of the Audit Committee of the Company Board, subject to and consistent with the Related Party Transactions Policy.

 

Section 4.3            Expenses.  Except as otherwise specified in this Agreement, all costs and expenses, including fees and disbursements of counsel, financial advisors and accountants, incurred in connection with this Agreement and the transactions contemplated by this Agreement shall be borne by the Party incurring such costs and expenses.

 

Section 4.4            Governing Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, without giving effect to any applicable principles of conflict of laws that would cause the Laws of another State to otherwise govern this Agreement.  The Parties agree that any Action seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby (whether brought by any party or any of its Affiliates or against any party

 

11

 

or any of its Affiliates) shall be heard and determined exclusively in the Delaware Court of Chancery; provided, however, that if the Delaware Court of Chancery does not have jurisdiction over such Action, such Action shall be heard and determined exclusively in the Superior Court of the State of Delaware (Complex Commercial Division); provided, further, that if subject matter jurisdiction over the matter that is the subject of the Action is vested exclusively in the courts of the United States of America, such Action shall be heard in the United States District Court for the District of Delaware.  Consistent with the preceding sentence, each of the Parties hereby (i) submits to the exclusive jurisdiction of such courts for the purpose of any Action arising out of or relating to this Agreement brought by any Party; (ii) agrees that service of process will be validly effected by sending notice in accordance with Section 4.6; (iii) irrevocably waives, and agrees not to assert by way of motion, defense, or otherwise, in any such Action, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the Action is brought in an inconvenient forum, that the venue of the Action is improper, or that this Agreement or the transactions contemplated by this Agreement may not be enforced in or by any of the above named courts; and (iv) agrees not to move to transfer any such Action to a court other than any of the above-named courts.

 

Section 4.5            Waiver of Jury Trial.  EACH OF THE PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION AMONG THE PARTIES DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. EACH OF THE PARTIES (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THAT FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

Section 4.6            Notices.  All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given (and, in the case of delivery in person or by overnight mail, shall be deemed to have been duly given upon receipt) by delivery in person or overnight mail to the respective parties or delivery by electronic mail transmission (providing confirmation of transmission) to the respective Parties.  Any notice sent by electronic mail transmission shall be deemed to have been given and received at the time of confirmation of transmission.  Any notice sent by electronic mail transmission shall be followed reasonably promptly with a copy delivered by overnight mail.  All notices, requests, claims, demands and other communications hereunder shall be addressed as follows, or to such other address or email address for a Party as shall be specified in a notice given in accordance with this Section 4.6:

 

If to Next Alt, to:

 

Next Alt S.à r.l.

5, rue Eugène Ruppert

L-2453 Luxembourg

Grand Duchy of Luxembourg

 

12

 

Attention: Jean-Luc Berrebi
 Email:    jean-luc.berrebi@yafit.co

 

If to A4, to:

 

A4 S.A.

5, rue Eugène Ruppert

L-2453 Luxembourg

Grand Duchy of Luxembourg

Attention: Jérémie Bonnin

Email:    Jeremie.Bonnin@altice.net

 

If to the Company, to:

 

Altice USA, Inc.

One Court Square West

Long Island City, NY 11101

Attention:  David Connolly

Email:  david.connolly@alticeusa.com

 

Section 4.7            Severability.  If any provision of this Agreement shall be held to be illegal, invalid or unenforceable under any applicable Law, then such contravention or invalidity shall not invalidate the entire Agreement.  Such provision shall be deemed to be modified to the extent necessary to render it legal, valid and enforceable, and if no such modification shall render it legal, valid and enforceable, then this Agreement shall be construed as if not containing the provision held to be invalid, and the rights and obligations of the Parties shall be construed and enforced accordingly.

 

Section 4.8            Entire Agreement.  This Agreement constitutes the entire agreement, and supersedes all other prior agreements and understandings (both written and oral), among the Parties with respect to the subject matter hereof and thereof.

 

Section 4.9            Term and Termination.  The covenants, obligations and other agreements contained in this Agreement shall continue until such time as they are fully performed or satisfied in accordance with their terms, or are no longer required to be performed or satisfied, as agreed in writing by the Parties; provided that no covenant, obligation or other agreement shall be considered to be performed or satisfied to the extent of any breach of such covenant, obligation or other agreement.

 

Section 4.10          Assignment; No Third-Party Beneficiaries.  This Agreement may not be assigned by operation of law or otherwise without the express written consent of the Parties, except that Next Alt or A4 may assign their respective rights and obligations to any member of the PDR Group.  This Agreement is for the sole benefit of the Parties to this Agreement and their permitted successors and assigns and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person or entity any legal or equitable

 

13

 

right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.  Any purported assignment in breach of this Section 4.10 shall be null and void.

 

Section 4.11          Amendment; Waiver.  No provision of this Agreement may be amended or modified except by a written instrument signed by all the Parties to such agreement.  Each of Next Alt, A4 and the Company may, in its sole discretion, waive any and all rights granted to it in this Agreement; provided, that no waiver by any Party of any provision hereof shall be effective unless explicitly set forth in writing and executed by the Party so waiving.  The waiver by any Party of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any other subsequent breach.

 

Section 4.12          Specific Performance.  The Parties acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached.  Each Party agrees that, in the event of any breach or threatened breach by any other Party of any obligation contained in this Agreement, a non-breaching Party shall be entitled to (a) an order of specific performance to enforce the observance and performance of such obligation and (b) an injunction restraining such breach or threatened breach.  Each Party further agrees that the non-breaching Party shall not be required to obtain, furnish or post any bond or similar instrument in connection with or as a condition to obtaining any remedy referred to in this Section 4.12, and each Party irrevocably waives any right it may have to require the obtaining, furnishing or posting of any such bond or similar instrument.

 

Section 4.13          Interpretations.  When a reference is made in this Agreement to an Article, Section or Schedule, such reference shall be to an Article, Section or Schedule to this Agreement unless otherwise indicated.  The words “include” and “including” when used herein shall be deemed in each case to be followed by the words “without limitation.”  Any references in this Agreement to “the date hereof” refers to the date of execution of this Agreement.  The table of contents and headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.  References to “this Agreement,” “hereof,” “herein,” and “hereunder” refer to this Agreement as a whole and not to any particular provision of this Agreement and include any schedules, annexes, exhibits or other attachments to this Agreement.  The word “or” shall be deemed to mean “and/or.”  The words “writing,” “written” and comparable terms refer to printing, typing and other means of reproducing words (including electronic media) in a visible form. All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein.  The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such term.  When a reference is made to Law, such reference means any such Law as amended, modified, codified or reenacted, in whole or in part, including rules and regulations promulgated thereunder.  When reference is made to a contract (including this Agreement), document, or instrument, such reference is to such contract, document or instrument as amended or modified in accordance with the terms thereof and, if applicable, the terms hereof. References to a Person are also to its permitted successors and assigns.

 

14

 

Section 4.14          Mutual Drafting.  The Parties have participated jointly in the negotiation and drafting of this Agreement with the assistance of counsel and other advisors and, in the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as jointly drafted by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement or interim drafts of this Agreement.

 

Section 4.15          Counterparts; Electronic Transmission of Signatures.  This Agreement may be executed in any number of counterparts and by different Parties in separate counterparts, and delivered by means of electronic mail transmission or otherwise, each of which when so executed and delivered shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement.

 

[The remainder of this page has been intentionally left blank; the next page is the signature page.]

 

15

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the date first written above by their respective duly authorized officers.

 

	
 
    	
ALTICE USA, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Connolly
    
	
 
    	
 
    	
Name   David Connolly
    
	
 
    	
 
    	
Title:   EVP — General Counsel
    

 

[Signature Page to Stockholders Agreement]

 

 

	
 
    	
NEXT ALT S.À R.L.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Armelle Koelf
    
	
 
    	
 
    	
Name:   Armelle Koelf
    
	
 
    	
 
    	
Title:   Authorized Signatory
    

 

[Signature Page to Stockholders Agreement]

 

 

	
 
    	
A4 S.A.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Armelle Koelf
    
	
 
    	
 
    	
Name:   Armelle Koelf
    
	
 
    	
 
    	
Title:   Authorized Signatory
    

 

[Signature Page to Stockholders Agreement]EX-4.9

 Exhibit 4.9 
  

 
  

TAMPA ELECTRIC COMPANY 
 and 

THE BANK OF NEW YORK MELLON, 
 As
Trustee 
  
  

THIRTEENTH SUPPLEMENTAL INDENTURE 

dated as of June 7, 2018 

Supplementing the Indenture 
 dated
as of July 1, 1998 
  
  

4.30% Notes Due 2048 
  

 
  

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	 ARTICLE ONE
	  	 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION 
	  	 	2	 
	 Section 1.01.
	  	Definitions 	  	 	2	 
	 Section 1.02.
	  	Section References 	  	 	3	 
	 ARTICLE TWO
	  	 DESIGNATION AND TERMS OF THE NOTES 
	  	 	3	 
	 Section 2.01.
	  	Establishment of Series 	  	 	3	 
	 Section 2.02.
	  	Variations in Terms of the Notes 	  	 	4	 
	 Section 2.03.
	  	Amount and Denominations; the Depositary 	  	 	4	 
	 Section 2.04.
	  	Stated Maturity 	  	 	4	 
	 Section 2.05.
	  	Interest Rates and Interest Payment Dates 	  	 	4	 
	 Section 2.06.
	  	Form and Other Terms of the Notes 	  	 	5	 
	 Section 2.07.
	  	Authentication and Delivery 	  	 	5	 
	 Section 2.08.
	  	Redemption; No Sinking Fund 	  	 	5	 
	 ARTICLE THREE
	  	 MISCELLANEOUS 
	  	 	6	 
	 Section 3.01.
	  	Effect On Original Indenture 	  	 	6	 
	 Section 3.02.
	  	Counterparts 	  	 	6	 
	 Section 3.03.
	  	Recitals 	  	 	6	 
	 Section 3.04.
	  	Governing Law 	  	 	6	 
	 Section 3.05.
	  	Force Majeure 	  	 	6	 
	 Section 3.06.
	  	Waiver of Jury Trial 	  	 	7	 
	 Section 3.07.
	  	Damages 	  	 	7	 
	 Section 3.08.
	  	FATCA 	  	 	7	 
	 Section 3.09.
	  	Reports 	  	 	7	 
	 EXHIBIT A
	  	 FORM OF NOTE 
	  	 	A-1	 
	 EXHIBIT B
	  	 FORM OF SUPPLEMENTAL COMPANY ORDER 
	  	 	B-1	 

  
 -i- 

 This Thirteenth Supplemental Indenture, dated as of June 7, 2018, is between Tampa Electric
Company, a corporation duly organized and existing under the laws of the State of Florida (hereinafter called the “Company”) and having its principal office at TECO Plaza, 702 North Franklin Street, Tampa, Florida 33602, and The
Bank of New York Mellon, as trustee (hereinafter called the “Trustee”), and having its principal corporate trust office at 101 Barclay Street, 7 West, New York, New York 10286. 

WITNESSETH: 
 WHEREAS, the
Company and the Trustee entered into an Indenture, dated as of July 1, 1998, as amended by a Third Supplemental Indenture, dated as of June 15, 2001, as further amended by the Tenth Supplemental Indenture, dated as of September 19,
2012, between the Company and the Trustee (the “Original Indenture”), pursuant to which one or more series of debt of the Company (the “Securities”) may be issued from time to time; and 

WHEREAS, Section 201 of the Original Indenture permits the terms of any series of Securities to be established in an indenture
supplemental to the Original Indenture; and 
 WHEREAS, Section 901(7) of the Original Indenture provides that a supplemental indenture
may be entered into by the Company and the Trustee without the consent of any Holders of the Securities to establish the form and terms of the Securities of any series; and 

WHEREAS, the Company has requested the Trustee to join with it in the execution and delivery of this Thirteenth Supplemental Indenture in
order to supplement and amend the Original Indenture by, among other things, establishing the form and terms of a series of Securities to be known as the Company’s “4.30% Notes due 2048” (the “Notes”); and 

WHEREAS, the Company and the Trustee desire to enter into this Thirteenth Supplemental Indenture for the purposes set forth in
Sections 201 and 901 of the Original Indenture as referred to above; and 
 WHEREAS, the Company has furnished the Trustee with a Board
Resolution authorizing the execution of this Thirteenth Supplemental Indenture; and 
 WHEREAS, all things necessary to make this Thirteenth
Supplemental Indenture a valid agreement of the Company and the Trustee and a valid supplement to the Original Indenture have been done, 

 NOW, THEREFORE, THIS THIRTEENTH SUPPLEMENTAL INDENTURE WITNESSETH: 

For and in consideration of the premises and the purchase of the Notes to be issued hereunder by Holders thereof, the Company and the Trustee
mutually covenant and agree, for the equal and proportionate benefit of the respective Holders from time to time of the Notes, as follows: 

ARTICLE ONE 

Definitions and Other Provisions of General Application 

Section 1.01.    Definitions 

All capitalized terms that are used herein and not otherwise defined herein shall have the meanings assigned to them in the Original Indenture.
The Original Indenture together with this Thirteenth Supplemental Indenture are hereinafter sometimes collectively referred to as the “Indenture.” As used in this Thirteenth Supplemental Indenture, the following capitalized terms
shall have the following respective meanings: 
 “Business Day” means any day other than (i) a Saturday or Sunday that
is neither a legal holiday nor a day on which banking institutions are authorized or required by law or regulations to close in the City of New York, or (ii) a day on which the Corporate Trust Office of the Trustee is closed for business. 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having
a maturity comparable to the remaining term of the Notes to be redeemed (assuming for this purpose that the Notes matured on December 15, 2047) that would be used, at the time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Notes. 
 “Comparable Treasury
Price” means with respect to any redemption date (1) the average of five Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if an
Independent Investment Banker obtains fewer than five such Reference Treasury Dealer Quotations, the average of all such quotations. 

“Depositary” means The Depository Trust Company or its successor. 

“Independent Investment Banker” means J.P. Morgan Securities LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., MUFG
Securities Americas Inc. and Wells Fargo Securities, LLC, or any of their respective successors, as designated by the Company, or if all of those firms are unwilling or unable to serve as such, an independent investment and banking institution of
national standing appointed by the Company. 
 “Interest Payment Date” means June 15 and December 15 of
each year. 
 “Notes” has the meaning set forth in the preamble hereof. 

“Original Issue Date” means the date upon which the Notes are initially issued by the Company, such date to be set forth on
the face of each Note. 

  
 2 

 “Person” means any individual, corporation, partnership, limited liability
company, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision of any government. 

“Record Date” means the fifteenth calendar day (whether or not a Business Day) immediately preceding the related Interest
Payment Date, provided, however, as long as the Notes are registered in the name of the Depositary, its nominee or a successor depositary, the Record Date shall be the close of business on the Business Day immediately preceding the Interest Payment
Date. The Record Date shall constitute the Regular Record Date for purposes of the Original Indenture. 
 “Reference Treasury
Dealer” means J.P. Morgan Securities LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”) selected by MUFG Securities Americas
Inc., Wells Fargo Securities, LLC, or each of their respective affiliates and successors; provided that if any such Reference Treasury Dealer ceases to be a Primary Treasury Dealer, the Company will substitute another Primary Treasury Dealer. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the
average, as determined by an Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to an Independent Investment Banker at 3:30
p.m., New York City time, on the third Business Day preceding such redemption date. 
 “Treasury Rate” means, as of any
redemption date, the rate per annum equal to the semiannual equivalent yield to maturity (computed as of the second Business Day immediately preceding that redemption date) of the Comparable Treasury Issue, assuming a price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for that redemption date. 
 
Section 1.02.    Section References 
 Each reference to a particular section set forth in this Thirteenth
Supplemental Indenture shall, unless the context otherwise requires, refer to this Thirteenth Supplemental Indenture. 
 
ARTICLE TWO 
 Designation and Terms of the Notes 

Section 2.01.    Establishment of Series 

There is hereby created a series of Securities to be known and designated as the “4.30% Notes Due 2048,” which shall rank equally
with each other and all other unsecured and unsubordinated indebtedness of the Company. For the purposes of the Original Indenture, the Notes shall constitute a single series of Securities. 

  
 3 

 Section 2.02.    Variations in Terms
of the Notes 
 Subject to the terms and conditions set forth in the Original Indenture and in this Thirteenth Supplemental Indenture,
the terms of any particular Note may vary from the terms of any other Note as contemplated by Section 301 of the Original Indenture, and the terms for a particular Note will be set forth in such Note as delivered to the Trustee or an
Authenticating Agent for authentication pursuant to Section 303 of the Original Indenture. 

Section 2.03.    Amount and Denominations; the Depositary 

(a)    The initial principal amount of Notes that may be issued under this Thirteenth Supplemental Indenture shall be
$350,000,000. Additional Notes may be issued under this Thirteenth Supplemental Indenture in unlimited principal amounts as permitted by the Original Indenture. The authorized denominations of Notes shall be $2,000 or integral multiples of $1,000 in
excess thereof. 
 (b)    The Notes shall be issuable only in fully registered form, without coupons, and will initially
be registered in the name of the Depositary, or its nominee who is hereby designated as “Depositary” under the Original Indenture. 

Section 2.04.    Stated Maturity 

The Stated Maturity of the principal amount of the Notes shall be June 15, 2048. 

Section 2.05.    Interest Rates and Interest Payment Dates 

(a)    Interest Rate. The Notes shall bear interest at the annual rate of 4.30% from the Original Issue Date to the
date on which the principal shall become due on the Stated Maturity, and if such principal is not fully paid on the Stated Maturity, until such principal is paid in full. Interest on the Notes will be payable semi-annually on each Interest Payment
Date, commencing on December 15, 2018. Such interest will be payable to the Holder thereof as of the related Record Date. 

(b)    Computation of Interest. The amount of interest payable for any period will be computed on the basis of a
year of 360 days consisting of twelve 30-day months. Except for the effect of any adjustment in the Interest Payment Date as provided in the following sentence, the amount of interest payable for any
period shorter than a full six-month period for which interest is computed, will be computed on the basis of the actual number of days elapsed in such a 180-day period.
If any Interest Payment Date would otherwise be a day that is not a Business Day, the payment required to be made on such Interest Payment Date will be postponed to the next succeeding Business Day, and no interest will accrue on such payment for
the period from and after such Interest Payment Date to the date of such payment on the next succeeding Business Day, except that, if such Business Day is in the next succeeding calendar year, such payment shall be made on the immediately preceding
Business Day, in each case with the same force and effect as if made on such Interest Payment Date. 

  
 4 

 Section 2.06.    Form and Other Terms
of the Notes 
 (a)    Attached hereto as Exhibit A is the form of Note, which form is hereby established as
the form in which the Notes may be issued and which shall be completed with the series designation, Stated Maturity, interest rate and CUSIP number applicable to the Notes upon such issuance. 

(b)    Subject to (a) above, any Note may be issued in such other form as may be provided by, or not inconsistent
with, the terms of the Original Indenture and this Thirteenth Supplemental Indenture. 

Section 2.07.    Authentication and Delivery 

As provided in and pursuant to Section 303 of the Original Indenture, each time that the Company delivers Notes to the Trustee or
Authenticating Agent for authentication after the initial issuance of Notes under this Thirteenth Supplemental Indenture, the Company shall deliver a Supplemental Company Order in the form of Exhibit B to this Thirteenth
Supplemental Indenture (which form shall be completed upon delivery with the series designation applicable to the Notes) for the authentication and delivery of such Notes and the Trustee or such Authenticating Agent shall authenticate and deliver
such Notes. 
 Section 2.08.    Redemption; No Sinking Fund 

(a)    Prior to December 15, 2047, the Notes are subject to redemption, in whole or in part, at any time, at the
option of the Company, at a redemption price equal to the greater of: 
 (i)    100% of the principal
amount of Notes then outstanding to be redeemed, or 
 (ii)    the sum of the present values of the
remaining scheduled payments of principal and interest on the Notes then outstanding to be redeemed that would be due if such Notes matured on December 15, 2047 (not including any portion of such payments of interest accrued as of the
redemption date) discounted to the redemption date on a semiannual basis (computed based on a 360-day year consisting of twelve 30-day months) at the Treasury Rate, plus
twenty basis points (0.20%), as calculated by an Independent Investment Banker, 
 plus, in either of the above cases, accrued and unpaid interest thereon
to the redemption date. From and after December 15, 2047, the Notes are subject to redemption in whole or in part at the option of the Company at a redemption price equal to 100% of the principal amount of Notes then outstanding to be redeemed
plus accrued and unpaid interest thereon to the redemption date. 
 (b)    The Company will deliver a notice of
redemption at least 30 days but no more than 60 days before the redemption date to each Holder of Notes to be redeemed. If the Company elects to partially redeem the Notes, the Trustee will select in a fair and appropriate manner the Notes to be
redeemed (or, in the case of Notes held in global form, the Depositary will select the Notes to be redeemed in accordance with its standard procedures). 

  
 5 

 (c)    Unless the Company defaults in payment of the redemption price, on and
after the redemption date, interest will cease to accrue on the Notes or portions thereof called for redemption. 

(d)    The Notes are not entitled to the benefit of any sinking fund or analogous provision. 

ARTICLE THREE 

Miscellaneous 
 
Section 3.01.    Effect On Original Indenture 
 The Thirteenth Supplemental Indenture is a supplement to
the Original Indenture. As supplemented by this Thirteenth Supplemental Indenture, the Original Indenture is in all respects ratified, approved and confirmed, and the Original Indenture and this Thirteenth Supplemental Indenture shall together
constitute one and the same instrument. 
 Section 3.02.    Counterparts

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

Section 3.03.    Recitals 

The recitals contained herein shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness.
The Trustee makes no representations as to the validity or sufficiency of this Thirteenth Supplemental Indenture.    The Trustee shall not be accountable for the use or application by the Company of the Notes or the proceeds
thereof. 
 Section 3.04.    Governing Law 

This Thirteenth Supplemental Indenture shall be governed by and construed in accordance with the laws of the jurisdiction that govern the
Original Indenture and its construction. 
 Section 3.05.    Force Majeure

 In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder
arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of
God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts which are consistent with accepted practices in the banking
industry to resume performance as soon as practicable under the circumstances. 

  
 6 

 Section 3.06.    Waiver of Jury Trial

 EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE SECURITIES OR THE TRANSACTION CONTEMPLATED HEREBY. 

Section 3.07.    Damages 

In no event shall the Trustee be responsible or liable for special, indirect, punitive, or consequential loss or damage of any kind whatsoever
(including, but not limited to, loss or profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action. 

Section 3.08.    FATCA 

In order to comply with applicable tax laws, rules and regulations (inclusive of directives, guidelines and interpretations promulgated by
competent authorities) in effect from time to time (“Applicable Law”), if a foreign financial institution, issuer, trustee, paying agent, holder or other institution (the “Foreign Institution”) has agreed to be a
party or subject to the Indenture, (i) the Foreign Institution agrees to provide (and, to the extent such information is in the possession of the Company, the Company agrees to provide) to The Bank of New York Mellon sufficient information
about itself so The Bank of New York Mellon can determine whether it has tax related obligations under Applicable Law, and (ii) the Company, the Guarantor and the Foreign Institution agree that The Bank of New York Mellon shall be entitled to
make any withholding or deduction from payments under the Indenture to the extent necessary to comply with Applicable Law. The terms of this section shall survive the termination of this Indenture. 

Section 3.09.    Reports 

Delivery of the reports and documents described in Section 704 of the Original Indenture to the Trustee is for informational purposes
only, and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants under
the Indenture. 
 [The balance of this page intentionally left blank.] 

  
 7 

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

					
	TAMPA ELECTRIC COMPANY
		
	By:	 	/s/ Gregory W. Blunden
		 	Name:	 	Gregory W. Blunden
		 	Title:	 	Senior Vice President – Finance and Accounting, Treasurer and Chief Financial Officer (Chief Accounting Officer)
	
	THE BANK OF NEW YORK MELLON, AS TRUSTEE
		
	By:	 	/s/ Laurence J. O’Brien
		 	Name:	 	Laurence J. O’Brien
		 	Title:	 	Vice President

  
 Signature Page to
Thirteenth Supplemental Indenture 

 EXHIBIT A 

FORM OF NOTE 
  

			
	CUSIP NO.: ___________	  	PRINCIPAL AMOUNT: $___________
	REGISTERED NO. __	  	

 TAMPA ELECTRIC COMPANY 

4.30% Notes Due 2048 
  

	☒	Check this box if the Note is a Global Note. 

 Applicable if the Note is a Global Note: 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION, TO THE ISSUER OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 This Note is a Global Security
within the meaning of the Indenture hereinafter referred to and is registered in the name of Cede & Co., or such other nominee of The Depository Trust Company, a New York corporation, or any successor depositary
(“Depositary”), as requested by an authorized representative of the Depositary. This Note is exchangeable for Notes registered in the name of a person other than the Depositary or its nominee only in the limited circumstances
described in the Indenture and may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary. 

 

					
	 ORIGINAL ISSUE DATE: June 7, 2018

ISSUE PRICE: 99.464% (as a percentage of principal amount)

STATED MATURITY: June 15, 2048
 INTEREST RATE:
4.30% per annum.
	  	 INTEREST PAYMENT DATES: June 15 and December 15 of each year commencing December 15, 2018.

SPECIFIED CURRENCY: U.S. dollars
 AUTHORIZED
DENOMINATIONS: N/A (Only applicable if specified currency is other than U.S. dollars)
	  	 SINKING FUND: None
 YIELD TO
MATURITY: N/A
 REDEMPTION: Redeemable in whole or in part, at the Company’s option, from time to time at the redemption prices described on
the reverse of this Note.
 DEPOSITARY: The Depository Trust Company, or any successor depository.

  
 A-1 

 TAMPA ELECTRIC COMPANY, a corporation duly organized and existing under the laws of the State of
Florida (herein called the “Company,” which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the
principal sum set forth on the face of this Note on the Stated Maturity, upon the presentation and surrender hereof at the principal corporate trust office of The Bank of New York Mellon, or its successor in trust (the “Trustee”),
or such other office as the Trustee has designated in writing, and to pay interest on the unpaid principal balance hereof at a rate per annum (computed based on a 360-day year consisting of twelve 30-day months) equal to the Interest Rate set forth on the face of this Note for the period from the Original Issue Date to, but excluding, the Stated Maturity. 

Interest will be payable on the Interest Payment Dates to the Person in whose name this Note is registered at the close of business on the
related Record Date, which is the fifteenth calendar day (whether or not a Business Day) immediately preceding the related Interest Payment Date, provided, however, as long as this Note is registered in the name of the Depositary, its nominee or a
successor depositary, the Record Date shall be the close of business on the Business Day immediately preceding the Interest Payment Date. In each case, payments shall be made in accordance with the provisions hereof, until the principal hereof is
paid or duly made available for payment. 
 Payment of the principal of (and premium, if any) and any such interest on this Note shall be
made in immediately available funds at the office or agency of the Company maintained for that purpose in the City of New York in the State of New York, in such coin or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. 
 Reference is hereby made to the further provisions of this Note set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of
authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

  
 A-2 

 IN WITNESS WHEREOF, TAMPA ELECTRIC COMPANY has caused this instrument to be duly executed. 

Dated:                , 20 

 

									
	 TRUSTEE’S CERTIFICATE

OF AUTHENTICATION
 This is one of the series

designated therein referred
 to in the within-mentioned
Indenture.
 THE BANK OF NEW YORK MELLON,
 as Trustee
	 		 	 TAMPA ELECTRIC COMPANY
  

	 		 	By:	 	 
	 		 		 	Name:
	 		 		 	Title:
				
	By:	 	 	 		 	
		 	Authorized signatory	 		 	

  
 A-3 

 (REVERSE OF NOTE) 

TAMPA ELECTRIC COMPANY 

4.30% Notes Due 2048 
 This Note
is one of a duly authorized series of securities of the Company (herein called the “Notes”), issued and to be issued under an Indenture dated as of July 1, 1998, as amended, and as supplemented by the Thirteenth Supplemental
Indenture, dated as of June 7, 2018 (as such has been or shall be amended or supplemented, the “Indenture”), between the Company and The Bank of New York Mellon, as trustee (the “Trustee”, which term includes
any successor Trustee under the Indenture), to which Indenture reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Notes and of
the terms upon which the Notes are, and are to be, authenticated and delivered. This Note is one of the securities of the series designated on the face hereof. 

DEFINITIONS 
 The
following terms, as used herein, have the following meanings unless the context or use clearly indicates another or different meaning or intent: 

“Business Day” means any day other than (i) a Saturday or Sunday that is neither a legal holiday nor a day on which
banking institutions are authorized or required by law or regulations to close in the City of New York, or (ii) a day on which the Corporate Trust Office of the Trustee is closed for business. 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having
a maturity comparable to the remaining term of the Notes to be redeemed (assuming for this purpose that the Notes matured on December 15, 2047) that would be used, at the time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Notes. 
 “Comparable Treasury
Price” means with respect to any redemption date (1) the average of five Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if an
Independent Investment Banker obtains fewer than five such Reference Treasury Dealer Quotations, the average of all such quotations. 

“Depositary” shall mean The Depository Trust Company or any successor depositary. 

“Independent Investment Banker” means J.P. Morgan Securities LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., MUFG
Securities Americas Inc. and Wells Fargo Securities, LLC, or any of their respective successors, as designated by the Company, or if all of those firms are unwilling or unable to serve as such, an independent investment and banking institution of
national standing appointed by the Company. 

  
 A-4 

 “Interest Payment Date” means each of the dates on which interest on this Note
is payable, which dates are set forth on the face of this Note. 
 “Reference Treasury Dealer” means J.P. Morgan Securities
LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”) selected by MUFG Securities Americas Inc., Wells Fargo Securities, LLC, or each of
their respective affiliates and successors; provided that if any such Reference Treasury Dealer ceases to be a Primary Treasury Dealer, the Company will substitute another Primary Treasury Dealer. 

Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average,
as determined by an Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to an Independent Investment Banker at 3:30 p.m., New
York City time, on the third Business Day preceding such redemption date. 
 “Treasury Rate” means, as of any redemption
date, the rate per annum equal to the semiannual equivalent yield to maturity (computed as of the second Business Day immediately preceding that redemption date) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for that redemption date. 
 INTEREST RATE

 This Note will bear interest at the rate per annum (computed based on a 360-day year
consisting of twelve 30-day months) identified on the face of this Note. Except for the effect of any adjustment in the Interest Payment Date as provided in the following sentence, the amount of interest
payable for any period shorter than a full six-month period for which interest is computed, will be computed on the basis of the actual number of days elapsed in such a
180-day period. If any Interest Payment Date would otherwise be a day that is not a Business Day, the payment required to be made on such Interest Payment Date will be postponed to the next succeeding Business
Day, and no interest will accrue on such payment for the period from and after such Interest Payment Date to the date of such payment on the next succeeding Business Day, except that, if such Business Day is in the next succeeding calendar year,
such payment shall be made on the immediately preceding Business Day, in each case with the same force and effect as if made on such Interest Payment Date. 

OPTIONAL REDEMPTION 

Prior to December 15, 2047, the Notes are subject to redemption, in whole or in part, at any time, at the option of the Company, at a
redemption price equal to the greater of: 
 (i)    100% of the principal amount of the Notes then
outstanding to be redeemed, or 

  
 A-5 

 (ii)    the sum of the present values of the remaining
scheduled payments of principal and interest on the Notes then outstanding to be redeemed that would be due if such Notes matured on December 15, 2047 (not including any portion of such payments of interest accrued as of the redemption date)
discounted to the redemption date on a semiannual basis (computed based on a 360-day year consisting of twelve 30-day months) at the Treasury Rate, plus twenty basis
points (0.20%), as calculated by an Independent Investment Banker, 
 plus, in either of the above cases, accrued and unpaid interest thereon to the
redemption date. From and after December 15, 2047, the Notes are subject to redemption in whole or in part at the option of the Company at a redemption price equal to 100% of the principal amount of Notes then outstanding to be redeemed plus
accrued and unpaid interest thereon to the redemption date. 
 The Company will deliver a notice of redemption at least 30 days but no more
than 60 days before the redemption date to each Holder of the Notes to be redeemed. If the Company elects to partially redeem the Notes, the Trustee will select in a fair and appropriate manner the Notes to be redeemed (or, in the case of Notes held
in global form, the Depositary will select the Notes to be redeemed in accordance with its standard procedures). 
 Unless the Company
defaults in payment of the redemption price, on and after the redemption date, interest will cease to accrue on the Notes or portions thereof called for redemption. 

The Notes are not entitled to the benefit of any sinking fund or analogous provision. 

TRANSFER OR EXCHANGE 
 As
provided in the Indenture and subject to certain limitations herein and therein set forth, the transfer of this Note is registerable in the Security Register, upon surrender of this Note for registration of transfer at the office or agency of the
Company in any place where the principal of (and premium, if any) and interest on this Note are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly
executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the
designated transferee or transferees. 
 The Notes are issuable only in registered form without coupons and, except for such Notes issued in
book-entry form, only in denominations of $2,000 and any integral multiple of $1,000. As provided in the Indenture and subject to certain limitations herein and therein set forth, this Note is exchangeable for a like aggregate principal amount of
Notes of this series and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same. 

  
 A-6 

 No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to
due presentment of this Note for registration of transfer, the Company or the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this
Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 
 OTHER PROVISIONS

 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the
Securities at the time Outstanding of each series to be affected and of the Holders of 66 2/3% in principal amount of the Securities at the time Outstanding of all series to be affected. The Indenture also contains provisions permitting the
Holders of specified percentages in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. To the extent permitted by law, any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of
any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 

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

All terms used in this Note that are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

This Note shall be governed by and construed in accordance with the laws of the State of New York. 

  
 A-7 

 ABBREVIATIONS 

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations: 
  

																	
	TEN COM	  	--	  	as tenants in common	  	UNIF GIFT MIN ACT	  	--	  	 	  	CUSTODIAN	  	 	  	
	TEN ENT	  	--	  	as tenants by the entireties	  		  	(Cust)	  		  	(Minor)	  	
	JT TEN	  	--	  	as joint tenants with right of survivorship Under Uniform Gifts to Minors Act	  		  	
		  		  	and not as tenants in common	  	 	  		  		  		  		  	
		  		  		  	(State)	  		  		  		  		  	

 Additional abbreviations may also be used though not in the above list. 

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

Please Insert Social Security or 
 Other Identifying Number of
Assignee 

			
	 	
	 	  	

  
   

 
 PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS
INCLUDING POSTAL ZIP CODE OF ASSIGNEE 
  
  

 
  

the within Security of TAMPA ELECTRIC COMPANY and does hereby irrevocably constitute and appoint __________________ ________________________________ attorney
to transfer said Security on the books of the Company, with full power of substitution in the premises. 
  

											
	 Dated:
	 	 	  		  		  	 	  	
						
		 		  		  		  	 	  	

 NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within instrument in
every particular, without alteration or enlargement or any change whatsoever. 

  
 A-8 

 EXHIBIT B 

FORM OF SUPPLEMENTAL COMPANY ORDER 

TAMPA ELECTRIC COMPANY 
 4.30%
NOTES DUE 2048 
 SUPPLEMENTAL COMPANY ORDER 

Pursuant to Section 2.07 of Article Two of the Thirteenth Supplemental Indenture, dated as of June 7, 2018, to the Indenture, dated
as of July 1, 1998, as amended, you are instructed to authenticate a Note, of the series identified above, in the principal amount of $______________. 

IN WITNESS WHEREOF, I have hereunto set my hand this ___ day of ________, 20__. 

 

			
	TAMPA ELECTRIC COMPANY
		
	By:	 	 
		 	Name:
		 	Title:

  
 B-1

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