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     Confidential Materials omitted and filed separately with the  Securities and Exchange Commission. Double asterisks denote omissions. EXECUTION VERSION                                                                                                                                                                                                       SETTLEMENT AND LICENSE AGREEMENT                                                              This Settlement and License Agreement (this “Settlement Agreement”) is         entered into as of September 14, 2018 (the “Effective Date”) by and between Smith &         Nephew, Inc., a Delaware corporation with its principal place of business at 150         Minuteman Road, Andover, MA 01810 (“Smith & Nephew”) and Conformis, Inc., a         Delaware corporation with its principal place of business at 600 Technology Park Drive,         Billerica, Massachusetts 01821 (“Conformis”).  Smith & Nephew and Conformis are         also referred to herein, individually, as a “Party” and, collectively, as “Parties”.                WHEREAS, Conformis is the owner of U.S. Patent Nos. 7,534,263; 7,981,158;         8,062,302; 8,377,129; 8,551,169; 8,657,827; 9,055,953; 9,216,025; and 9,295,482 (the         “Conformis Asserted Patents”);                WHEREAS, on February 2, 2016, Conformis filed a complaint in the United         States District Court for the District of Massachusetts (Civil Action No. 16-cv-2684-IT)         alleging infringement of the Conformis Asserted Patents by Smith & Nephew (the         “Action”);                WHEREAS, Smith & Nephew is an owner of U.S. Patent Nos. 8,394,147 and         8,403,992 and the owner of U.S. Patent Nos. 7,371,240; 8,690,882; and 9,033,991 (the         “Smith & Nephew Asserted Patents”);                WHEREAS, on May 27, 2016, Smith & Nephew filed an answer in the Action         denying Conformis’s allegation of patent infringement and filed counterclaims alleging         infringement of the Smith & Nephew Asserted Patents against Conformis;                WHEREAS, between September 2016 and February 2017, Smith & Nephew         filed inter partes review petitions with the United States Patent and Trademark Office         (the “USPTO”) seeking to invalidate each of the Conformis Asserted Patents         (collectively, the “IPRs”); and                WHEREAS, the Parties desire to dismiss the Action, terminate the IPRs and         enter into this Settlement Agreement for each Party to obtain a release, license and         covenant not to sue from the other Party, all on the terms and conditions set forth herein.                 NOW, THEREFORE, for good and valuable consideration, including the         releases and mutual promises contained herein, the receipt and sufficiency of which is         hereby acknowledged, the Parties agree as follows:                                                                                                                                                                                                                                                     

 

                                  I.   Definitions         As used in this Settlement Agreement, the following terms shall have the  following meanings.         “Affiliate” means, with respect to any Person, any other Person that directly or   indirectly controls, is controlled by or is under common control with such Person,   whether now or in the future, but only for so long as such other Person continues to   control, be controlled by, or be under common control with such first Person.  For   purposes of this definition, “control” means the possession, directly or indirectly, of the   power to direct or cause the direction of management or policies of a Person whether   through the ownership of more than fifty percent (50%) of the voting securities, by   contract or otherwise.          “Applicable Law” means, with respect to any Person, any transnational, domestic   or foreign 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 Authority that is binding upon or applicable to such Person, as amended   unless expressly specified otherwise.          “Change of Control” of a Person means (a) the sale, lease, transfer, conveyance   or other disposition, in one or a series of related transactions, of all or substantially all of   the assets of such Person and its subsidiaries, taken as a whole or (b) a transaction or   series of transactions (including by way of merger, consolidation, sale of stock or   otherwise) the result of which is that any Person or “group” (as defined in Section 13 of   the Securities Exchange Act of 1934) becomes the “beneficial owner” (as such term is   defined in Rule 13d-3 and Rule 13d-5 promulgated under the Securities Exchange Act),   directly or indirectly, of more than fifty percent (50%) of the voting power of the   outstanding voting stock of such Person entitled to vote generally in elections of directors   of such Person.           “Conformis Additional Patents” means U.S. Patent Nos. 9,872,773; 9,877,790;   9,956,047; and 9,956,048.          “Conformis Asserted Patents” has the meaning set forth in the Recitals.           “Conformis Covenant Patents” means any and all (a) Patents owned or   Licensable by Conformis or any of its Existing Affiliates as of the Effective Date,   (b) Patents claiming priority, directly or indirectly, to any of the Patents set forth in   clause (a) hereof and (c) Patents to which any of the Patents set forth in clause (a) hereof   claims priority, directly or indirectly, including, in each case, any and all divisionals,   continuations, continuations-in-part, reissues, renewals, re-examinations, extensions and   foreign counterparts of any of the foregoing.  Notwithstanding the foregoing, Conformis   Covenant Patents excludes Conformis Licensed Patents.          “Conformis Covenant Products” means the Conformis Existing Products and   Limited Variations thereof.                                      2                                                                                

 

           “Conformis Customers” means any and all customers (including resellers and   distributors) of Conformis or any of its Affiliates, but in each case only to the extent that   any such customers Exploit (or have Exploited) any Conformis Covenant Products and   Conformis Licensed Products.            “Conformis Existing Products” means (a) any and all products (other than OTS  Implants) sold or offered for sale as of the Effective Date by Conformis or any of its  Existing Affiliates and (b) any and all OTS Implants sold or offered for sale as of the  Effective Date by Conformis or any of its Existing Affiliates, but only to the extent that  such OTS Implants are Exploited in conjunction with the products described in clause (a)  that are Patient Specific Implants, in the case of clauses (a) and (b), as such products and  implants exist as of the Effective Date.  For the avoidance of doubt, the term Conformis  Existing Products (i) includes the products known as of the Effective Date as iTotal CR,  iTotal PS, iDuo and iUni implant systems and the Conformis Hip System, in each case as  such products exist as of the Effective Date and (ii) excludes any and all OTS Implants  other than the OTS Implants described in clause (b) above.         “Conformis Licensed Patents” means (a) the Conformis Asserted Patents and   Conformis Additional Patents, (b) any and all Patents claiming priority, directly or   indirectly, to any Conformis Asserted Patent or any Conformis Additional Patent, and  (c) any and all Patents to which any Conformis Asserted Patent or any Conformis  Additional Patent claims priority, directly or indirectly, including, in each case, any and   all divisionals, continuations, continuations-in-part, reissues, renewals, re-examinations,   extensions and foreign counterparts of any of the foregoing.          “Conformis Licensed Products” means any and all (a) Patient Specific Implants,   including any and all instrumentation (including Patient Specific Instruments and   instruments that are not Patient Specific Instruments) and components, in each case,   associated with such Patient Specific Implants (whether sold separately or together with   such Patient Specific Implants) and (b) OTS Implants Exploited for use in conjunction   with any Patient Specific Implants, in each of clauses (a) and (b) that are sold or offered   for sale by Conformis or any of its Affiliates and Covered by any of the Smith & Nephew   Licensed Patents, including the products known as of the Effective Date as iTotal CR,   iTotal PS, iDuo and iUni implant systems.  For the avoidance of doubt, the term   Conformis Licensed Products excludes any implants that are not Patient Specific   Implants (other than any OTS Implants Exploited as described in clause (b) for use in   conjunction with any Patient Specific Implants).          “Conformis Suppliers” means any and all suppliers of Conformis or any of its   Affiliates, but in each case only to the extent any such suppliers supply products or   components, or provide services, to Conformis or any of its Affiliates for the design,   testing, manufacturing or Exploitation of Conformis Covenant Products and Conformis   Licensed Products.          “Cover” means that, with respect to any Patent and product, but for a license,   non-assert or other immunity granted to any Person under any claim included in such   Patent, the Exploitation of such product by such Person would infringe such claim, where                                       3                                                                                

 

     the reference to “claim” in this definition includes the claims of any pending Patent  application as if issued.  “Covered” has a correlative meaning.         “Customers” means Conformis Customers or Smith & Nephew Customers, as  applicable.         “Existing Affiliate” means, with respect to a Party, any Person that is an Affiliate  of such Party as of the Effective Date.         “Exploit” means to use, make, have made, purchase, sell, offer for sale, lease,  provide, import, export, dispose and/or otherwise exploit.  “Exploited” and   “Exploitation” have correlative meanings.          “Field of Use” means orthopaedic implants, instrumentation, and related services   other than orthopaedic implants, instrumentation, and services pertaining solely to   unicompartmental patellofemoral devices.          “Governmental Authority” means any transnational, domestic or foreign  federal, state or local governmental, regulatory or administrative authority, commission,  department, court, tribunal, agency or official, including any political subdivision thereof.         “Kinamed Asserted Patents” means U.S. Patent Nos. 8,771,281; 8,419,741;  8,961,529; 8,936,601; and 9,393,032.          “Licensable” means, with respect to any Patent, that a Person has the power and  authority to grant a non-exclusive license or a covenant not to sue on the terms and  conditions of this Settlement Agreement to such Patent without (a) violating the terms of  any agreement with any third party, (b) the consent of any third party (unless such  consent can be obtained without providing any additional consideration to such third  party), and/or (c) the payment of royalties or other consideration on or after the Effective  Date by such Person to any third party under any preexisting agreement relating to such  Patent (except for such Patent which a Party in-licenses and which the other Party elects  to include in the Conformis Non-Assert and/or Smith & Nephew Non-Assert, as  applicable, and agrees to make the associated payments as provided in Section 6(a) or  6(b), as applicable, which will be considered Licensable by such Party).  For the  avoidance of doubt, in no event shall any Patent be considered “Licensable” if any of the  foregoing conditions in clauses (a)-(c) apply.          “Limited Variations” means                 (a)   with respect to any Conformis Existing Product or Conformis         Licensed Product, (i) any evolution or line extension of such Conformis         Existing Product or Conformis Licensed Product, as applicable, whereby all of         the claims of the Smith & Nephew Covenant Patents that Cover such         evolution or line extension also Cover such Conformis Existing Product or         Conformis Licensed Product, as applicable, and/or (ii) [**]; and                                        4                                                                                

 

               (b)  with respect to any Smith & Nephew Existing Product or Smith        & Nephew Licensed Product, any evolution or line extension of such Smith &        Nephew Existing Product or Smith & Nephew Licensed Product, as applicable,        whereby all of the claims of the Conformis Covenant Patents that Cover such        evolution or line extension also Cover such Smith & Nephew Existing Product        or Smith & Nephew Licensed Product, as applicable.         “Loan Agreement” means that certain Loan and Security Agreement between  Conformis and Oxford Finance dated as of January 6, 2017, as amended (including as  amended by the (a) First Amendment to Loan and Security Agreement dated as of  March 9, 2017, (b) Second Amendment to Loan and Security Agreement dated as of  June 30, 2017, (c) Third Amendment to Loan and Security Agreement dated as of  December 18, 2017 and (d) Fourth Amendment to Loan and Security Agreement  dated as of July 31, 2018).         “Net Sales” means, with respect to any Smith & Nephew Royalty-Bearing  Product, the total gross invoice amounts of such Smith & Nephew Royalty-Bearing  Product by Smith & Nephew and its Affiliates, in each case less (a) actual credits,  discounts, allowances and returns actually paid, accrued or granted, (b) bad debt  write-offs booked, (c) sales, value added or other excise taxes and import duties to the  extent included in the invoice price and separately identified on the invoice provided  to the customers of Smith & Nephew or other documentation maintained by Smith &  Nephew, its Affiliates and their respective licensees and sublicensees and to the extent  such taxes are remitted to the applicable taxing authority and (d) charges for freight,  insurance, handling and transportation, to the extent included in the invoice price and  separately identified on the invoice or other documentation maintained by Smith &  Nephew, its Affiliates and their respective licensees and sublicensees in the ordinary  course of business.  Net Sales shall be determined by using generally accepted  accounting principles consistently applied.  In the case of any sale or transfer of a  Smith & Nephew Royalty-Bearing Product between or among Smith & Nephew and  its Affiliates for subsequent resale, Net Sales will be calculated as above only on the  first arm’s length sale thereafter to a Person that is not an Affiliate of Smith &  Nephew. In the case of any sale or transfer of a Smith & Nephew Royalty-Bearing  Product between or among Smith & Nephew and its Affiliates which is not for  subsequent resale and pursuant to which any such Affiliate Exploits such Smith &  Nephew Royalty-Bearing Product in a manner substantially similar to a Smith &  Nephew Customer, Net Sales will be calculated as above as if the sale is at the  amount which would be obtained in an arm’s length sale to a Person that is not an  Affiliate of Smith & Nephew. Notwithstanding any of the foregoing, “Net Sales”  excludes any (i) sales, transfers, disposals or any other Exploitation of any Smith &  Nephew Royalty-Bearing Products for training, clinical studies or under  compassionate use, patient assistance, named patient use or non-registrational studies  or other similar programs or studies or (ii) samples of Smith & Nephew Royalty- Bearing Products used for promotional purposes, in amounts consistent with normal  business practices of Smith & Nephew or any of its Affiliates.                                        5                                                                              

 

         “OTS Implant” means any joint replacement implant that is not a Patient  Specific Implant.         “Oxford Finance” means Oxford Finance LLC.         “Patents” means any and all (a) issued patents (including any extensions,  restorations by any existing or future extension or registration mechanism (including  patent term adjustments, patent term extensions, supplemental protection certificates or  the equivalent thereof), substitutions, confirmations, re-registrations, re-examinations,  reissues (including inter partes review patents and post-grant review patents) and patents  of addition thereof), (b) patent applications (including all provisional and non-provisional  applications, substitutions, requests for continuing examination, continuations,  continuations-in-part, divisionals and renewals), (c) inventor’s certificates and  (d) equivalents of any of the foregoing, however denominated, in any jurisdiction of the  world.         “Patient Data” means any and all imaging data of a bone, articular cartilage, or  joint, or any portion of a bone, articular cartilage, or joint, in each case of a particular  patient.          “Patient Specific Implants” means any and all implants, trial implants and any  component of any of the foregoing, in each case designed and manufactured for, or on  behalf of, a particular patient using Patient Data of such patient.         “Patient Specific Instrument” or “PSI” means any instrumentation or  instrument that is designed and manufactured for, or on behalf of, a particular patient  using Patient Data of such patient.         “Person” means any natural person, firm, sole proprietorship, corporation,  partnership, joint venture, trust, association, incorporated organization, limited liability  company, government agency, or any other form of business or legal entity.         “Proceeding” means any action, claim, lawsuit, litigation, proceeding, inquiry, or  arbitration (in each case, whether civil, criminal or administrative) by or before any  Governmental Authority.         “Royalty Term” means the period commencing on the Effective Date and ending  on May 28, 2022.         “Smith & Nephew Covenant Patents” means any and all (a) Patents owned or  Licensable by Smith & Nephew and/or its Existing Affiliates as of the Effective Date,  (b) Patents claiming priority, directly or indirectly, to any of the Patents set forth in  clause (a) hereof and (c) Patents to which any of the Patents set forth in clause (a) hereof  claims priority, directly or indirectly, including, in each case, any and all divisionals,  continuations, continuations-in-part, reissues, renewals, re-examinations, extensions and  foreign counterparts of any of the foregoing.  Notwithstanding the foregoing, (i) Smith &  Nephew Covenant Patents excludes Smith & Nephew Licensed Patents and (ii) with  respect to Limited Variations of Conformis Existing Products under subsection (a)(ii) of                                     6                                                                              

 

     the definition of Limited Variations and the Conformis Hip System, Smith & Nephew   Covenant Patents excludes any and all Smith & Nephew Excluded Patents.          “Smith & Nephew Covenant Products” means the Smith & Nephew Existing  Products and Limited Variations thereof.         “Smith & Nephew Customers” means any and all customers (including resellers  and distributors) of Smith & Nephew or any of its Affiliates, but in each case only to the  extent that any such customers Exploit (or have Exploited) any Smith & Nephew  Covenant Products and Smith & Nephew Licensed Products.           “Smith & Nephew Excluded Patents” means (a) the Patents set forth on  Exhibit A and (b) any and all Patents claiming priority, directly or indirectly, to any of  the Patents set forth on Exhibit A; provided that any Patents claiming priority, directly or  indirectly, to any Smith & Nephew Licensed Patents or Smith & Nephew Covenant  Patents shall not be Smith & Nephew Excluded Patents.         “Smith & Nephew Existing Products” means any and all products sold or  offered for sale as of the Effective Date by Smith & Nephew or any of its Existing  Affiliates, including the products set forth on Exhibit B, in each case as such products  exist as of the Effective Date.  For the avoidance of doubt, Smith & Nephew Existing  Products excludes (a) Patient Specific Implants and (b) PSI or other instrumentation or  components Exploited in conjunction with Patient Specific Implants, whether Exploited  separately or together.         “Smith & Nephew Licensed Asserted Patents” means (a) the Smith & Nephew  Asserted Patents, (b) any and all Patents claiming priority, directly or indirectly, to any  Smith & Nephew Asserted Patents and (c) any and all Patents to which any Smith &  Nephew Asserted Patent claims priority, directly or indirectly, including, in each case,  any and all divisionals, continuations, continuations-in-part, reissues, renewals, re- examinations, extensions and foreign counterparts of any of the foregoing.         “Smith & Nephew Licensed Kinamed Patents” means (a) the Kinamed  Asserted Patents, (b) any and all Patents claiming priority, directly or indirectly, to any  Kinamed Asserted Patent and (c) any and all Patents to which any Kinamed Asserted  Patent claims priority, directly or indirectly, including, in each case, any and all  divisionals, continuations, continuations-in-part, reissues, renewals, re-examinations,  extensions and foreign counterparts of any of the foregoing.         “Smith & Nephew Licensed Patents” means the Smith & Nephew Licensed  Asserted Patents and Smith & Nephew Licensed Kinamed Patents.         “Smith & Nephew Licensed Products” means any and all (a) PSI sold or offered  for sale by Smith & Nephew or any of its Affiliates for use with, or as part of a system  that includes, OTS Implants and Covered by any of the Conformis Asserted Patents,  including the products known as of the Effective Date as VISIONAIRE® Patient  Matched Instrumentation and (b) OTS Implants sold or offered for sale by Smith &  Nephew or any of its Affiliates for use in total or partial knee arthroplasty, including any                                      7                                                                                

 

     and all instrumentation and components associated therewith (whether sold separately or   together with such OTS Implants), Covered by any of the Conformis Additional Patents,   including the products known as of the Effective Date as the Journey II, Legion, Genesis   II, ZUK, JOURNEY Uni.  For the avoidance of doubt, Smith & Nephew Licensed   Products excludes Patient Specific Implants and instrumentation or components   Exploited in conjunction with Patient Specific Implants.          “Smith & Nephew Royalty-Bearing Products” means any and all Patient   Specific Instruments included in subsection (a) of the definition of the Smith & Nephew   Licensed Products, but in each case excluding any such Patient Specific Instruments   Exploited by Smith & Nephew or any of its Affiliates in conjunction with total or partial   knee arthroplasty for which an up-front payment is payable as provided in Section 10(b).          “Smith & Nephew Suppliers” means any and all suppliers of Smith & Nephew  or any of its Affiliates, but in each case only to the extent any such suppliers supply   products or components, or provide services, to Smith & Nephew or any of its Affiliates   with respect to Smith & Nephew Covenant Products.          “Standstill Period” means, with respect to any Person that threatens in writing,  initiates or otherwise asserts any patent infringement or patent invalidity or  unenforceability Proceeding against a Party, any of its Affiliates or any of their respective  Customers or Suppliers, as applicable, the time period that is thirty (30) days after such  Person receives a written response from such Party, any of its Affiliates or any of their  respective Customers or Suppliers, as applicable, invoking the defensive suspension  terms and conditions of Sections 6 or 15, as applicable; provided that, if such Person has  requested a preliminary injunction or other expedited relief in connection with such  Proceeding, such time period shall be immediately after such Person receives such  written response.         “Suppliers” means Conformis Suppliers or Smith & Nephew Suppliers, as  applicable.   Each of the following terms is defined in the Section set forth opposite such term.          Term Section         Acquirer 15(b)         Acquisition Products                      15(c)         Action Recitals         Assigning Party                           15(b)         Confidential Information                  19         Conformis Preamble         Conformis Asserted Patents Recitals         Conformis Divestiture                     15(c)         Conformis Indemnitees                     13(b)         Conformis License                         3(b)         Conformis Non-Assert                      5(a)         Divested Conformis Entity                 15(c)                                       8                                                                                

 

           Divested Conformis Products               15(c)         Divested Smith & Nephew Entity            15(f)         Divested Smith & Nephew Products          15(f)         IPRs Recitals         Non-Assigning Party                       15(b)         Parties Preamble         Party Preamble         Released Claims                           2(b)         Request 1919(a)         S&N Indemnitees                           13(a)         SEC 1919(a)         Smith & Nephew                            Preamble         Smith & Nephew Asserted Patents           Recitals         Smith & Nephew Divestiture                15(d)         Smith & Nephew License                    3(a)         Smith & Nephew Non-Assert                 5(b)         USPTO Recitals                                            II.   Terms         1.    No Admission Of Liability         The Parties acknowledge and agree that neither the making of this Settlement   Agreement nor any term or condition of this Settlement Agreement shall constitute or be   construed or alleged as an admission of any liability or wrongdoing whatsoever or as an   admission regarding any legal or factual assertion or position by either Party or any of  such Party’s Affiliates.  Each Party expressly denies any liability to the other Party and its  Affiliates in connection with the Action.  The Parties acknowledge and agree that this  Settlement Agreement, in part, is a litigation settlement and that no representation is  made regarding the reasonableness of the consideration set forth herein for the  infringement alleged in the Action.         2.    Dismissal and Mutual Release         (a)   Dismissal of the Action and Termination of the IPRs.  Upon the Effective   Date, to the extent permitted by Applicable Law, Smith & Nephew shall cease any   participation in or opposition to the IPRs or any appeals thereof, except that the Parties   shall (i) cause, through their respective counsel, (A) the dismissal, with prejudice, of all   claims and counterclaims asserted by and between them in the Action and (B) the filing   of joint motions to terminate the four IPRs currently pending before the PTAB (IPR2017-  00544, IPR2017-00778, IPR2017-00779 and IPR2017-007801 related to U.S. Patent   numbers 7,534,263 and 8,062,302), in each case, within three (3) business days following   the Effective Date and (ii) take all reasonable actions to facilitate the execution and entry   of all applicable dismissals and orders to terminate.  Neither Party shall take any action to   oppose the district court’s entry of dismissal or the USPTO’s order of termination, nor   subsequently take any action either to vacate or modify or appeal from dismissal of the                                       9                                                                                

 

     Action or termination of the IPRs.  If the district court refuses to enter any agreed form of  dismissal or the USPTO refuses to enter any agreed form of order to terminate the IPRs,  the Parties and their respective counsel shall cooperate to prepare, execute and lodge a   revised form of dismissal or motion to terminate, as applicable, mutually acceptable to   the Parties and to the district court or the USPTO, as applicable.  Notwithstanding the   foregoing, Conformis may pursue appeals of final written decisions from the IPRs, and   Smith & Nephew shall not participate in any such appeals to the extent it is permitted by   Applicable Law to remove itself from any such appeals.  Each of the Parties shall bear its   own costs and attorneys’ fees associated with the Action and the IPRs.          (b)   Mutual Release.  Effective upon the dismissal of the Action with prejudice   and the termination of the IPRs as provided in Section 2(a), each Party, on behalf of itself   and its Affiliates, hereby voluntarily and irrevocably releases, acquits and forever   discharges the other Party and such other Party’s Affiliates (together with its and their   predecessors, successors, agents, attorneys, insurers, servants, employees, officers and   directors) from any and all Proceedings, actions, causes of action, suits, torts, damages,   expenses, attorneys’ fees, and any and all claims, counterclaims, cross-claims, defenses,  offsets, judgments, demands, losses, liabilities and indemnities of all and any nature  whatsoever, both at law and in equity, whether individual or derivative, state or federal,   which the Parties or any of their respective Affiliates ever had, now have, or can, shall or   may have based upon, related to or arising out of the Action and/or the IPRs, the subject   matter of the Action and/or the IPRs, any of the Conformis Licensed Patents or the Smith   & Nephew Licensed Patents, or any infringement related to Conformis Existing Products   or Smith & Nephew Existing Products sold prior to the Effective Date, as applicable,   whether presently known or not, whether or not discoverable, whether accrued or  unaccrued (such claims, collectively, the “Released Claims”), except for claims to   enforce or construe this Settlement Agreement.          (c)   Unknown Claims.  Each Party, on behalf of itself and its Affiliates,   expressly acknowledges and agrees that this Settlement Agreement fully and finally   releases and resolves all Released Claims, including those that are unknown,   unanticipated or unsuspected or that may hereafter arise as a result of the discovery of   new and/or additional facts.  Each Party, on behalf of itself and its Affiliates,  acknowledges and understands the significance and potential consequences of its release   of unknown claims.  Each Party, on behalf of itself and its Affiliates, intends that the   Released Claims be construed as broadly as possible, within the scope of the releases   defined under Section 2(b), and shall waive and relinquish all rights and benefits it may   have under Section 1542 of the Civil Code of the State of California, or any similar   statute or law of any other jurisdiction.  Section 1542 of the Civil Code of the State of   California reads as follows: “A GENERAL RELEASE DOES NOT EXTEND TO   CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO   EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE   RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY   AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”                                        10                                                                                

 

           3.    Licenses          (a)   License from Conformis to Smith & Nephew.  Subject to the terms and   conditions of this Settlement Agreement (and Conformis’s receipt of the payment by   Smith & Nephew of the upfront payment as set forth in Section 10(b)), Conformis, on   behalf of itself and its Affiliates, hereby grants Smith & Nephew and its Affiliates a non-  exclusive, non-transferable (except as provided in Section 15), worldwide, perpetual,   irrevocable, royalty-bearing (as provided in Section 10(c)) license, without the right to   sublicense (except as provided in Section 4(a)), under the Conformis Licensed Patents to   Exploit any and all Smith & Nephew Licensed Products and to practice and have   practiced any method and/or process in connection with the manufacture and use thereof  (the “Smith & Nephew License”).         (b)   License from Smith & Nephew to Conformis.  Subject to the terms and   conditions of this Settlement Agreement, Smith & Nephew, on behalf of itself and its   Affiliates, hereby grants Conformis and its Affiliates a non-exclusive, non-transferable  (except as provided in Section 15), worldwide, fully paid-up, royalty-free, perpetual,   irrevocable license, without the right to sublicense (except as provided in Section 4(b)),   under (i) the Smith & Nephew Licensed Asserted Patents to Exploit any and all   Conformis Licensed Products and to practice and have practiced any method and/or   process in connection with the manufacture and use thereof and (ii) the Smith & Nephew   Licensed Kinamed Patents to Exploit any and all Conformis Licensed Products and to  practice and have practiced any method and/or process in connection with the   manufacture and use thereof, in the case of this clause (ii), in the Field of Use (the   “Conformis License”).           4.    Sublicensing          (a)   Smith & Nephew Sublicensing.  The Smith & Nephew License shall   include the right of Smith & Nephew and its Affiliates to grant sublicenses to any (i) third   party manufacturer or contractor to have all or part of any Smith & Nephew Licensed   Products made by such third party manufacturer or contractor anywhere in the world for   any Exploitation by Smith & Nephew and its Affiliates within the scope of the Smith &   Nephew License and (ii) third party reseller or distributor to have such third party reseller   or distributor resell or distribute, as applicable, within the scope of the Smith & Nephew   License, any Smith & Nephew Licensed Products first sold by Smith & Nephew or any   of its Affiliates.          (b)   Conformis Sublicensing.  The Conformis License shall include the right of   Conformis and its Affiliates to grant sublicenses to any (i) third party manufacturer or   contractor to have all or part of any Conformis Licensed Products made by such third   party manufacturer or contractor anywhere in the world for any Exploitation by   Conformis and its Affiliates within the scope of the Conformis License and (ii) third   party reseller or distributor to have such third party reseller or distributor resell or   distribute, as applicable, within the scope of the Conformis License, any Conformis   Licensed Products first sold by Conformis or any of its Affiliates.                                       11                                                                                

 

           5.    Mutual Non-Assert          (a)   By Conformis.  Without limiting any of the releases, immunities and   licenses granted under this Settlement Agreement, and subject to the terms and conditions   of this Settlement Agreement, Conformis shall not, and shall cause its Affiliates not to,   directly or indirectly, alone or by, with or through any other Person cause, induce or  authorize the commencement, maintenance or prosecution of any Proceeding asserting  any claim of infringement of any of the Conformis Covenant Patents against (i) Smith &  Nephew or any of its Affiliates based on any of their Exploitation of any Smith &  Nephew Covenant Products, (ii) any Smith & Nephew Customers based on their resale,  distribution or use or other Exploitation of such Smith & Nephew Covenant Products first  sold by Smith & Nephew or any of its Affiliates, and (iii) any Smith & Nephew Suppliers  of any Smith & Nephew Covenant Products based on their manufacture and supply of  such Smith & Nephew Covenant Products for and to Smith & Nephew and/or any of its  Affiliates (the “Conformis Non-Assert”).  For the avoidance of doubt, the Conformis  Non-Assert shall not apply to any Patient Specific Implants or instrumentation or   components Exploited in conjunction with Patient Specific Implants.          (b)   By Smith & Nephew.  Without limiting any of the releases, immunities   and licenses granted under this Settlement Agreement, and subject to the terms and   conditions of this Settlement Agreement, Smith & Nephew shall not, and shall cause its   Affiliates not to, directly or indirectly, alone or by, with or through any other Person   cause, induce or authorize the commencement, maintenance or prosecution of any   Proceeding asserting any claim of infringement of any of the Smith & Nephew Covenant   Patents against (i) Conformis or any of its Affiliates based on any of their Exploitation of   any Conformis Covenant Products, (ii) any Conformis Customers based on their resale,   distribution or use or other Exploitation of such Conformis Covenant Products first sold   by Conformis or any of its Affiliates, and (iii) any Conformis Suppliers of any Conformis   Covenant Products based on their manufacture and supply of such Conformis Covenant   Products for and to Conformis and/or any of its Affiliates (the “Smith & Nephew Non-  Assert”).  For the avoidance of doubt, the Smith & Nephew Non-Assert shall not apply   to any OTS Implant unless such OTS Implant is Exploited in conjunction with a Patient   Specific Implant that constitutes a Conformis Covenant Product.          6.    Third Party Payments          (a)   In the event that any Patent is not a Licensable Conformis Covenant Patent   hereunder solely because Conformis or any of its Affiliates would owe payments to a   third party on account of granting the Conformis Non-Assert with respect to such Patent,   Conformis shall notify Smith & Nephew in writing of the existence, and anticipated   amounts, of such payments and Smith & Nephew shall have the right to include such   Patent in the Conformis Non-Assert (it being understood that, if Smith & Nephew elects   to include such Patent in the Conformis Non-Assert, Smith & Nephew shall comply, and   shall cause its Affiliates, Customers and Suppliers to comply, with any obligations of   Conformis or any of its Affiliates under the applicable agreement with such third party   that apply to Smith & Nephew or any of its Affiliates, Customers or Suppliers and of   which Smith & Nephew was informed in writing by Conformis, including any obligation                                       12                                                                                

 

     to make such payments).  In the event that Smith & Nephew elects to include such Patent   in the Conformis Non-Assert, Smith & Nephew shall make such payments to Conformis   or, as directed by Conformis, to the third party within thirty (30) days of receiving an   invoice from Conformis for the same. Notwithstanding the foregoing, nothing in this   Section 6(a) shall be deemed to require Conformis to maintain in effect any such third   party license agreement.          (b)   In the event that any Patent is not a Licensable Smith & Nephew Covenant   Patent hereunder solely because Smith & Nephew or any of its Affiliates would owe   payments to a third party on account of granting the Smith & Nephew Non-Assert with   respect to such Patent, Smith & Nephew shall notify Conformis in writing of the   existence, and anticipated amounts, of such payments and Conformis shall have the right   to include such Patent in the Smith & Nephew Non-Assert (it being understood that, if   Conformis elects to include such Patent in the Smith & Nephew Non-Assert, Conformis   shall comply, and shall cause its Affiliates, Customers and Suppliers to comply, with any   obligations of Smith & Nephew or any of its Affiliates under the applicable agreement   with such third party that apply to Conformis or any of its Affiliates, Customers or   Suppliers and of which Conformis was informed in writing by Smith & Nephew,   including any obligation to make such payments).  In the event that Conformis elects to   include such Patent in the Smith & Nephew Non-Assert, Conformis shall make such   payments to Smith & Nephew or, as directed by Smith & Nephew, to the third party   within thirty (30) days of receiving an invoice from Smith & Nephew for the same.   Notwithstanding the foregoing, nothing in this Section 6(b) shall be deemed to require   Smith & Nephew to maintain in effect any such third party license agreement.          7.    Defensive Suspension          (a)   Smith & Nephew Defensive Suspension.  In the event that Conformis or   any of its Affiliates threatens in writing, initiates or otherwise asserts any Proceeding that   is within the scope of the Conformis Non-Assert or the covenants granted by Conformis   in Section 8(a) (except in response to any Proceeding that is within the scope of the Smith   & Nephew Non-Assert or the covenants granted by Smith & Nephew in Section 8(b), in   each case that is first threatened, initiated or otherwise asserted by Smith & Nephew or   any of its Affiliates), and does not withdraw such threat, initiation or assertion of such   Proceeding within the Standstill Period after receiving a written response from Smith &   Nephew or any of its Affiliates invoking the terms and conditions of this Section 7(a),   then Smith & Nephew and its Affiliates shall have the right to suspend the Smith &   Nephew Non-Assert and covenants under Section 8 of this Settlement Agreement.          (b)   Conformis Defensive Suspension.  In the event that Smith & Nephew or   any of its Affiliates threatens in writing, initiates or otherwise asserts any Proceeding that   is within the scope of the Smith & Nephew Non-Assert or the covenants granted by  Smith & Nephew in Section 8(b) (except in response to any Proceeding that is within the  scope of the Conformis Non-Assert or the covenants granted by Conformis in Section  8(a), in each case that is first threatened, initiated or otherwise asserted by Conformis or  any of its Affiliates), and does not withdraw such threat, initiation or assertion of such  Proceeding within the Standstill Period after receiving a written response from Conformis                                       13                                                                                

 

   or any of its Affiliates invoking the terms and conditions of this Section 7(b), then  Conformis and its Affiliates shall have the right to suspend the Conformis Non-Assert  and covenants under Section 8 of this Settlement Agreement.         8.    Covenants Not to Challenge         (a)   Conformis Covenant Not to Challenge Smith & Nephew Licensed Patents.   Conformis shall not, and shall cause its Affiliates not to, directly or indirectly, (i) initiate  or participate in any Proceeding (including any inter partes review, post grant review or  reexamination) advancing any claims that any of the Smith & Nephew Licensed Patents  are invalid or unenforceable or (ii) voluntarily assist or support any other Person in  connection with any challenge to the validity or enforceability of any of the Smith &  Nephew Licensed Patents (including by (A) cooperating with, paying for or advocating  on behalf of such challenge or Person, (B) providing to or identifying for such other  Person, or making any public statements concerning, any prior art relating to such Smith  & Nephew Licensed Patents or (C) making any public statements concerning the  prosecution history, validity or enforceability of such Smith & Nephew Licensed  Patents).  This Section 8(a) does not preclude Conformis or any of its Affiliates from  providing information as may be required by court order, law or judicial process.   Notwithstanding the foregoing, Conformis and its Affiliates may assert defenses of  invalidity and/or unenforceability and/or seek inter partes review, post grant review or  reexamination of any patent they are accused in the future of having infringed (including  making any public statements concerning the prosecution history, validity or  enforceability thereof or prior art relating thereto).  If any Person makes a formal, written  good faith demand for indemnification or defense to Conformis or any of its Affiliates  with respect to any of the Smith & Nephew Licensed Patents, and if Conformis or such  Affiliate thereof in good faith believes that it owes such Person a contractual duty to  defend and/or indemnify such Person, then Conformis or such Affiliate thereof may  challenge or assist such Person in the challenge of any such Smith & Nephew Licensed  Patent.  In such case, Conformis or such Affiliate thereof shall give Smith & Nephew  thirty (30) days’ written notice prior to initiating any such challenge.         (b)   Smith & Nephew Covenant Not to Challenge Conformis Licensed Patents.   Smith & Nephew shall not, and shall cause its Affiliates not to, directly or indirectly,  (i) initiate or participate in any Proceeding (including any inter partes review, post grant  review or reexamination) advancing any claims that any of the Conformis Licensed  Patents are invalid or unenforceable or (ii) voluntarily assist or support any other Person  in connection with any challenge to the validity or enforceability of any of the Conformis  Licensed Patents (including by (A) cooperating with, paying for or advocating on behalf  of such challenge or Person, (B) providing to or identifying for such other Person, or  making any public statements concerning, any prior art relating to such Conformis  Licensed Patents or (C) making any public statements concerning the prosecution history,  validity or enforceability of such Conformis Licensed Patents).  This Section 8(b) does  not preclude Smith & Nephew or any of its Affiliates from providing information as may  be required by court order, law or judicial process.  Notwithstanding the foregoing, Smith  & Nephew and its Affiliates may assert defenses of invalidity and/or unenforceability  and/or seek inter partes review, post grant review or reexamination of any patent they are                                      14                                                                              

 

     accused in the future of having infringed (including making any public statements   concerning the prosecution history, validity or enforceability thereof or prior art relating   thereto).  If any Person makes a formal, written good faith demand for indemnification or   defense to Smith & Nephew or any of its Affiliates with respect to any of the Conformis   Licensed Patents, and if Smith & Nephew or such Affiliate thereof in good faith believes   that it owes such Person a contractual duty to defend and/or indemnify such Person, then   Smith & Nephew or such Affiliate thereof may challenge or assist such Person in the   challenge of any such Conformis Licensed Patent.  In such case, Smith & Nephew or  such Affiliate thereof shall give Conformis thirty (30) days’ written notice prior to  initiating any such challenge.         9.    Reservation of Rights         (a)   Except as expressly provided in this Settlement Agreement, no licenses,  releases, non-asserts or other immunities are granted to either Party or any of its  Affiliates under this Settlement Agreement, whether by implication, estoppel or  otherwise.          (b)   Except as expressly provided in this Settlement Agreement, in no event  shall this Settlement Agreement be deemed to extend any licenses, non-asserts, rights or  other protections to any supplier or customer of Conformis or Smith & Nephew or any of  their respective Affiliates.         10.   Payments         (a)   Consideration. In consideration of the licenses, releases, non-asserts and   other immunities granted by Conformis to Smith & Nephew and its Affiliates under this   Settlement Agreement, Smith & Nephew (i) has granted to Conformis the licenses,   releases, non-asserts and other immunities under this Settlement Agreement, (ii) has   agreed to pay an upfront payment as set forth in Section 10(b), and (iii) has agreed to pay  certain royalties as set forth in Section 10(c).         (b)   Upfront Payment.  Smith & Nephew shall, or shall cause one of its   Affiliates to, promptly after the Effective Date (but in any event not later than thirty (30)   days thereafter), pay to Conformis or its designee, a payment of Ten Million Five   Hundred Thousand U.S. Dollars ($10,500,000.00).  Conformis shall have no obligation to   dismiss any Action pursuant to Section 2(a) until Smith & Nephew has paid to Conformis   the payment due pursuant to this Section 10(b).          (c)   Royalties.  Smith & Nephew shall, or shall cause one of its Affiliates to,   pay to Conformis or its designee a royalty in the amount of [**] percent ([**]%) of Net  Sales of the Smith & Nephew Royalty-Bearing Products during the Royalty Term;  provided that such royalty shall be no less than [**] U.S. Dollars ($[**]) per Smith &  Nephew Royalty-Bearing Product sold in the United States and no less than [**] U.S.  Dollars ($[**]) per Smith & Nephew Royalty-Bearing Product sold outside of the United  States.                                        15                                                                                

 

         (d)   Most Favored Nation.                     (i)   Conformis acknowledges and agrees that the licenses,        releases, non-asserts and other immunities granted to Smith & Nephew and its        Affiliates with respect to any Patient Specific Instruments included in the Smith &        Nephew Royalty-Bearing Products that are used outside of total or partial knee        arthroplasty (such Patient Specific Instruments, the “MFN Products”) under this        Settlement Agreement are and shall be, when considered as part of an integrated        whole, no less favorable to Smith & Nephew and its Affiliates than any terms and        conditions granted by Conformis or any of its Affiliates to any third party with        respect to the development, commercialization and/or other Exploitation of any        MFN Products.                      (ii)  If, at any time after the Effective Date, Conformis or any of        its Affiliates enters into any agreement (“Third Party Agreement”) with any        third party pursuant to which Conformis or any of its Affiliates grants such third        party any right to Exploit any MFN Product and such Third Party Agreement        includes any terms or conditions that are more favorable, when taken as a whole,        than those provided to Smith & Nephew and its Affiliates under this Settlement        Agreement (“More Favorable Provisions”), then Conformis shall promptly        provide written notice thereof to Smith & Nephew, and Smith & Nephew may        elect, at its discretion, to receive the benefit of such More Favorable Provisions        under this Settlement Agreement.  Upon any such election by Smith & Nephew,        this Settlement Agreement shall automatically be deemed to have been amended        and modified such that, from the date on which any such More Favorable        Provisions are first provided to any third party and thereafter, Smith & Nephew        and its Affiliates shall be provided such More Favorable Provisions (it being        understood that, if Smith & Nephew elects to accept such More Favorable        Provisions, Conformis shall not owe Smith & Nephew or any of its Affiliates any        refunds of any royalties already paid by Smith & Nephew to Conformis in        connection with any MFN Products prior to Conformis’s entry into any Third        Party Agreement containing such More Favorable Provisions).                     (iii) Notwithstanding anything in this Settlement Agreement to        the contrary, neither Conformis nor any of its Affiliates shall take any action        designed or intended to evade, frustrate or otherwise circumvent the intent or        purpose of this Section 10(d).         (e)   Reporting and Timing of Payment.  Smith & Nephew shall render to  Conformis, within thirty (30) days of the end of each quarter, commensurate with Smith  & Nephew’s fiscal year, a written report of any royalties due to Conformis for such fiscal  quarter.  Smith & Nephew shall remit to Conformis, concurrently with provision of the  royalty report, all royalties as shown to be due during such fiscal quarter.         (f)   Method of Payment.  Each payment contemplated in this Section 10 shall  be made in United States Dollars in immediately available funds via, at Smith &  Nephew’s election, electronic or wire transfer or any other means of electronic funds                                      16                                                                              

 

     transfer to the bank account specified below.  Conformis may change such account by   written notice at least ten (10) days before any payment is due.                Name of Account: Conformis Inc.               Name of Bank: [**]               Account No.: [**]               ABA Routing No.: [**]          (g)   Withholding Taxes.  To the extent Smith & Nephew is required by   Applicable Law to withhold or deduct any amounts from any royalty payments to be   made under Section 10(c), Smith & Nephew shall be entitled to withhold or deduct such  amounts and such amounts shall be treated for all purposes of this Settlement Agreement  as having been paid to Conformis as part of these payments in respect of which such  deduction and withholding were made.  Smith & Nephew shall (in consultation and  cooperation with Conformis) use commercially reasonable efforts to attempt to lawfully  mitigate, reduce or avoid such withholdings or deductions.          11.   Representations and Warranties         (a)   Conformis Representations and Warranties.                  Conformis represents and warrants that, as of the Effective Date, (i) it is   duly organized, validly existing and in good standing under the Applicable Law of the   jurisdiction of its organization, (ii) it has the requisite power and authority to execute and   deliver this Settlement Agreement and to fully perform its obligations hereunder, (iii) the   execution, delivery and performance of this Settlement Agreement has been duly   authorized by all corporate actions necessary on the part of Conformis, (iv) the individual   executing this Settlement Agreement on behalf of Conformis has the authority to do so,   (v) Conformis has the right to grant the releases, licenses, non-asserts and other rights   granted herein, and, to Conformis’s actual knowledge, Conformis is not licensed as of the   Effective Date to any Patent that (A) Covers any Smith & Nephew Existing Product and   (B) is not Licensable solely because Conformis or any of its Affiliates would owe   payments to a third party on account of granting the Conformis Non-Assert with respect   to such Patent and (vi) Conformis is the sole and exclusive owner of all right, title and   interest in and to each of the Conformis Licensed Patents and each claim therein which   Conformis and its Affiliates purport to release hereby, and neither Conformis nor any of   its Affiliates has assigned, transferred, conveyed or licensed, or purported to assign,   transfer, convey or license to any Person any claims or other matter released under this   Settlement Agreement.  Notwithstanding the foregoing or anything else in this Settlement   Agreement to the contrary, Conformis represents and warrants that the granting of the   releases, licenses, non-asserts and other rights granted herein do not conflict with, breach   or constitute a default under the Loan Agreement and there are no Patents that are not   Licensable as Conformis Covenant Patents as a result of the security interest granted to   Oxford Finance under the Loan Agreement.                                        17                                                                                

 

           (b)   Smith & Nephew Representations and Warranties.                  Smith & Nephew represents and warrants that, as of the Effective Date,   (i) it is duly organized, validly existing and in good standing under the Applicable Law of  the jurisdiction of its organization, (ii) it has the requisite power and authority to execute  and deliver this Settlement Agreement and to fully perform its obligations hereunder,  (iii) the execution, delivery and performance of this Settlement Agreement has been duly  authorized by all corporate actions necessary on the part of Smith & Nephew, (iv) the  individual executing this Settlement Agreement on behalf of Smith & Nephew has the  authority to do so, (v) Smith & Nephew has the right to grant the releases, licenses, non- asserts and other rights granted herein, and, to Smith & Nephew’s actual knowledge,  Smith & Nephew is not licensed as of the Effective Date to any Patent that (A) Covers  any Conformis Existing Product and (B) is not Licensable solely because Smith &  Nephew or any of its Affiliates would owe payments to a third party on account of  granting the Smith & Nephew Non-Assert with respect to such Patent, (vi) Smith &  Nephew is the sole and exclusive owner or the exclusive licensee in the Field of Use of  all right, title and interest in and to each of the Smith & Nephew Licensed Patents and  each claim therein which Smith & Nephew and its Affiliates purport to release hereby,  and neither Smith & Nephew nor any of its Affiliates has assigned, transferred, conveyed   or licensed, or purported to assign, transfer, convey or license to any Person any claims or  other matter released under this Settlement Agreement, and (vii) no Smith & Nephew  Royalty-Bearing Products exist as of the Effective Date.         12.   Disclaimer; Limitation of Liability         ALL LICENSES, RELEASES, NON-ASSERTS AND OTHER IMMUNITIES  GRANTED HEREIN ARE MADE ON AN “AS IS” AND “WHERE IS” BASIS, AND  EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES EXPRESSLY  PROVIDED IN SECTION 11, EACH PARTY HEREBY DISCLAIMS ANY EXPRESS  OR IMPLIED REPRESENTATIONS OR WARRANTIES OF ANY KIND,  INCLUDING THOSE REGARDING MERCHANTABILITY, FITNESS FOR ANY  PARTICULAR PURPOSE, TITLE, NON-INFRINGEMENT, QUALITY,  USEFULNESS, COMMERCIAL UTILITY, ADEQUACY, COMPLIANCE WITH  ANY LAW, DOMESTIC OR FOREIGN, AND THOSE ARISING FROM COURSE OF  DEALING, COURSE OF PERFORMANCE OR USAGE OF TRADE.  TO THE  EXTENT PERMITTED BY APPLICABLE LAW, NO PARTY WILL BE LIABLE  UNDER OR IN CONNECTION WITH THIS SETTLEMENT AGREEMENT UNDER  ANY LEGAL OR EQUITABLE THEORY FOR ANY INDIRECT, SPECIAL,  INCIDENTAL, PUNITIVE, REMOTE OR SPECULATIVE DAMAGES OR OTHER  DAMAGES THAT ARE NOT PROBABLE AND REASONABLY FORESEEABLE,  OF ANY KIND, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE  POSSIBILITY OF SUCH DAMAGES; PROVIDED, HOWEVER, THAT THE  FOREGOING LIMITATION SHALL NOT APPLY IN THE CASE OF ANY SUCH  DAMAGES PAID OR PAYABLE TO THIRD PARTIES IN CONNECTION WITH A  CLAIM FOR INDEMNIFICATION PURSUANT TO SECTION 13 OR IN THE CASE  OF GROSS NEGLIGENCE OR FRAUD.                                       18                                                                                

 

           13.   Indemnification          (a)   Indemnification by Conformis.  Conformis shall indemnify Smith &   Nephew, its Affiliates and their respective directors, officers, employees, contractors,   agents and representatives (the “S&N Indemnitees”) from and against and hold the S&N   Indemnitees harmless (including payment of attorneys’ fees and costs) from any claims   arising out of or relating to: (i) any assignment, transfer, conveyance or license, or   proposed assignment, transfer, conveyance or license of any of the Conformis Licensed   Patents, in whole or in part, and (ii) any assignment, transfer, conveyance or license, or  proposed assignment, transfer, conveyance or license of any claims or other matters  released herein.         (b)   Indemnification by Smith & Nephew.  Smith & Nephew shall indemnify   and hold harmless Conformis, its Affiliates and their respective directors, officers,   employees, contractors, agents and representatives (the “Conformis Indemnitees”) from   and against and hold the Conformis Indemnitees harmless (including payment of  attorneys’ fees and costs) from any claims arising out of or relating to (i) any assignment,   transfer, conveyance or license, or proposed assignment, transfer, conveyance or license   of any of the Smith & Nephew Licensed Patents, in whole or in part, and (ii) any   assignment, transfer, conveyance or license, or proposed assignment, transfer,   conveyance or license of any claims or other matters released herein.          14.   Assignment of Patents                (a)   Assignment by Conformis          Conformis and its Affiliates may assign, sell, or otherwise transfer any Conformis  Covenant Patents and Conformis Licensed Patents, but in each case only to an assignee,   purchaser or other transferee who shall first agree in writing (in a document identifying   Smith & Nephew and its Affiliates as intended third party beneficiaries) to observe and   be bound by all rights of Smith & Nephew, its Affiliates, Smith & Nephew Customers   and Smith & Nephew Suppliers, and all obligations of Conformis and its Affiliates, as   provided in this Settlement Agreement.  Any purported assignment, sale or other transfer  of rights in or to any Conformis Covenant Patents or Conformis Licensed Patents in  contravention of this Section 14(a) shall be null and void ab initio.               (b)   Assignment by Smith & Nephew         Smith & Nephew and its Affiliates may assign, sell, or otherwise transfer any  Smith & Nephew Covenant Patents and Smith & Nephew Licensed Patents, but in each  case only to an assignee, purchaser or other transferee who shall first agree in writing (in   a document identifying Conformis and its Affiliates as intended third party beneficiaries)   to observe and be bound by all rights of Conformis, its Affiliates, Conformis Customers   and Conformis Suppliers, and all obligations of Smith & Nephew and its Affiliates, as   provided in this Settlement Agreement.  Any purported assignment, sale or other transfer  of rights in or to any Smith & Nephew Covenant Patents or Smith & Nephew Licensed  Patents in contravention of this Section 14(b) shall be null and void ab initio.                                       19                                                                                

 

                       15.   Assignment of Settlement Agreement; Change of Control;    Divestitures             (a)   Neither Party may assign, delegate, sell, transfer or otherwise      dispose of any of its rights or obligations under this Settlement Agreement      without the other Party’s prior written consent except as expressly provided in this     Section 15.  Any assignment, delegation, sale, transfer or other disposal of this     Settlement Agreement or any rights or obligations hereunder in contravention of      this Section 15 shall be null and void ab initio.             (b)   This Settlement Agreement may be assigned or otherwise      transferred by each Party (the “Assigning Party”) without consent of the other      Party (the “Non-Assigning Party”): (i) to an Affiliate of the Assigning Party; or      (ii) subject to Section 15(c), to a Person acquiring such Party by virtue of a      Change of Control (the “Acquirer”); provided that, in each case, the Non-     Assigning Party is given written notice of such assignment or transfer and the      assignee of the Assigning Party agrees to assume all obligations of Assigning      Party under, and agrees to be bound by, this Settlement Agreement.             (c)   Notwithstanding anything in this Settlement Agreement to the      contrary, in the event of a Change of Control of a Party, subject to Section 15(e)      and 15(g), as applicable, (i) the licenses, non-asserts, releases and other      immunities granted to such Party and its Affiliates under this Settlement      Agreement shall thereafter be limited to (A) in the event of a Change of Control      of Conformis, the Conformis Licensed Products and Conformis Covenant      Products, as applicable and (B) in the event of a Change of Control of Smith &      Nephew, the Smith & Nephew Licensed Products and Smith & Nephew Covenant      Products, as applicable, in the case of clauses (A) and (B), as such products      existed immediately prior to such Change of Control and Limited Variations      thereof (“Acquisition Products”), and in no event shall any licenses, non-asserts,      releases and/or other immunities extend to any products of the Acquirer, except      for any Acquisition Products sold by such Acquirer after such Change of Control,      and (ii) the Patents of the Acquirer, to the extent such Patents were owned or      Licensable by the Acquirer immediately prior to such Change of Control, shall      not be subject to the licenses, non-asserts, releases and/or other immunities      granted under this Settlement Agreement.             (d)   Notwithstanding Section 15(a), if any Affiliate (a “Divested      Conformis Entity”) of Conformis ceases to be an Affiliate of Conformis or if      Conformis or any of its Affiliates transfers any Conformis Licensed Products or      Conformis Covenant Products (“Divested Conformis Products”) to any third      party acquirer by way of any asset sale (each of the foregoing transactions, a      “Conformis Divestiture”), then, subject to Section 15(e), Conformis may extend      the Conformis License, Smith & Nephew Non-Assert and release granted      hereunder to such Divested Conformis Entity or Divested Conformis Products, as      applicable; provided that (i) Smith & Nephew is given written notice of such      extension and the acquirer of such Divested Conformis Entity or Divested                                    20                                                                                            

 

                    Conformis Products agrees to be bound by the terms and conditions of this   Settlement Agreement, and (ii) with respect to the Conformis Licensed Products  and Conformis Covenant Products that are the subject of such Conformis  Divestiture, the extension of the Conformis License and the Smith & Nephew  Non-Assert under this Section 15(d) shall only apply to such Conformis Licensed  Products and Conformis Covenant Products, as applicable, as they exist as of the  time of such Conformis Divestiture and Limited Variations thereof.  For the  avoidance of doubt, and notwithstanding anything in this Settlement Agreement  to the contrary, the licenses, non-asserts and other immunities granted by or on  behalf of such Divested Conformis Entity under this Settlement Agreement shall   in no way be affected by such Conformis Divestiture and shall remain in full force   and effect in accordance with this Settlement Agreement.          (e)   If an Acquirer of Conformis, Divested Conformis Entity or any   acquirer of any Divested Conformis Entity or Divested Conformis Product   threatens in writing, initiates or otherwise asserts any patent infringement or  patent invalidity or unenforceability Proceeding against (i) Smith & Nephew or  any of its Affiliates, (ii) any Smith & Nephew Customers based on their resale,  distribution, use or other Exploitation of any products sold or offered for sale by  Smith & Nephew or any of its Affiliates or (iii) any Smith & Nephew Suppliers  based on their manufacture and supply for Smith & Nephew or any of its  Affiliates of any products sold or offered for sale by Smith & Nephew or any of  its Affiliates (except, in each case, in response to any patent infringement or  patent invalidity or unenforceability Proceeding that is first threatened, initiated or  otherwise asserted by Smith & Nephew or any of its Affiliates), and does not  withdraw such threat, initiation or assertion of such Proceeding within the  Standstill Period after receiving a written response from Smith & Nephew or any  of its Affiliates, Customers or Suppliers invoking the terms and conditions of this  Section 15(e), then Smith & Nephew and its Affiliates shall have the right to  suspend the Smith & Nephew Non-Assert extended under this Section 15 to the  Acquirer of Conformis, the Divested Conformis Entity or the acquirer of such  Divested Conformis Entity or Divested Conformis Product.         (f)   Notwithstanding Section 15(a), if any Affiliate (a “Divested Smith  & Nephew Entity”) of Smith & Nephew ceases to be an Affiliate of Smith &  Nephew or if Smith & Nephew or any of its Affiliates transfers any Smith &  Nephew Licensed Products or Smith & Nephew Covenant Products (“Divested  Smith & Nephew Products”) to any third party acquirer by way of any asset sale  (each of the foregoing transactions, a “Smith & Nephew Divestiture”), then,  subject to Section 15(g), Smith & Nephew may extend the Smith & Nephew  License, Conformis Non-Assert and release granted hereunder to such Divested  Smith & Nephew Entity or Divested Smith & Nephew Products, as applicable;  provided that (i) Conformis is given written notice of such extension and the  acquirer of such Divested Smith & Nephew Entity or Divested Smith & Nephew  Products agrees to be bound by the terms and conditions of this Settlement  Agreement, and (ii) with respect to the Smith & Nephew Licensed Products and  Smith & Nephew Covenant Products that are the subject of such Smith &                                21                                                                                         

 

           Nephew Divestiture, the extension of the Smith & Nephew License and the         Conformis Non-Assert under this Section 15(f) shall only apply to such Smith &         Nephew Licensed Products and Smith & Nephew Covenant Products, as         applicable, as they exist as of the time of such Smith & Nephew Divestiture and         Limited Variations thereof.  For the avoidance of doubt, and notwithstanding         anything in this Settlement Agreement to the contrary, the licenses, non-asserts         and other immunities granted by or on behalf of such Divested Smith & Nephew         Entity under this Settlement Agreement shall in no way be affected by such Smith         & Nephew Divestiture and shall remain in full force and effect in accordance with         this Settlement Agreement.                (g)   If an Acquirer of Smith & Nephew, Divested Smith & Nephew         Entity or any acquirer of any Divested Smith & Nephew Entity or Divested Smith         & Nephew Product threatens in writing, initiates or otherwise asserts any patent        infringement or patent invalidity or unenforceability Proceeding against (i)        Conformis or any of its Affiliates, (ii) any Conformis Customers based on their        resale, distribution, use or other Exploitation of any products sold or offered for         sale by Conformis or any of its Affiliates or (iii) any Conformis Suppliers based         on their manufacture and supply for Conformis or any of its Affiliates of any         products sold or offered for sale by Conformis or any of its Affiliates (except in         response to any patent infringement or patent invalidity or unenforceability        Proceeding that is first threatened, initiated or otherwise asserted by Conformis or         any of its Affiliates), and does not withdraw such threat, initiation or assertion of         such Proceeding within the Standstill Period after receiving a written response         from Conformis or any of its Affiliates, Customers or Suppliers invoking the         terms and conditions of this Section 15(g), then Conformis and its Affiliates shall         have the right to suspend the Conformis Non-Assert extended under this Section         15 to the Acquirer of Smith & Nephew, the Divested Smith & Nephew Entity or         the acquirer of such Divested Smith & Nephew Entity or Divested Smith &         Nephew Product.          16.   Governing Law          This Settlement Agreement shall be construed under the laws of the United States   and the State of Delaware (without reference to its choice of law statutes or precedents).          17.   Choice of Venue and Jurisdiction          Any action arising under or relating to this Settlement Agreement shall be venued   exclusively in the state or federal courts of the State of Delaware.  Each Party expressly   and irrevocably consents and submits to the jurisdiction of the court of the State of  Delaware having appropriate jurisdiction in connection with any such legal proceeding.          18.   WAIVER OF JURY TRIAL          EACH PARTY HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT   TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR                                       22                                                                                

 

     RELATED TO THIS SETTLEMENT AGREEMENT OR THE TRANSACTIONS   CONTEMPLATED HEREBY.          19.   Confidentiality; Announcements                (a)   Except as expressly provided in this Section 19, the terms of this   Settlement Agreement and all correspondence and discussions relating to this Settlement   Agreement (collectively, “Confidential Information”) are confidential.  The Parties  shall, and shall cause each of their Affiliates to, maintain the confidentiality of the  Confidential Information and no Party, nor any of their Affiliates, shall now or hereafter  disclose the Confidential Information to any third party except: (i) with the prior written  consent of each Party, (ii) as may be required by Applicable Law or order of a  Governmental Authority of competent jurisdiction, including in connection with any  public filings required to be made to the U.S. Securities and Exchange Commission  (“SEC”) under Applicable Law, (iii) in confidence to the professional legal and financial  counsel and accounting professionals representing such Party or such Affiliate, (iv) in  confidence, under a written confidentiality agreement (with confidentiality terms and  conditions no less restrictive than those set forth herein), to (A) any Person covered or  potentially to be covered by the releases, licenses or non-asserts granted herein or (B) any  prospective licensee or sublicensee of any Patent subject to the releases, licenses or non- asserts granted herein, (v) Oxford Finance under the confidentiality terms and conditions  of the Loan Agreement or (vi) in civil litigation, but only insofar as the Confidential  Information to be disclosed is designated “Highly Confidential” or any other similar   designation under a court approved protective order.  With respect to the foregoing clause   (ii), such disclosing Party or Affiliate shall, to the extent legally permissible, provide the   other Party with prior written notice of such Applicable Law or order or public filing and,   at the written request of the other Party, use reasonable efforts to limit the disclosure of   the Confidential Information, and to obtain a protective order or other confidential   treatment.  Without limiting the generality of the foregoing, Smith & Nephew   acknowledges and agrees that Conformis may file this Settlement Agreement with the   SEC; provided that, (A) pursuant to Rule 24b-2 of the Securities Exchange Act of 1934,  Conformis shall seek confidential treatment of those terms and conditions of this  Settlement Agreement as mutually agreed by the Parties (such confidential treatment  request, the “Request”) and (B) to the extent permitted by Applicable Law, Conformis  shall promptly notify Smith & Nephew in writing of any denial of such Request by the  SEC and provide Smith & Nephew with a reasonable opportunity to comment on any  response to such denial in furtherance of seeking such confidential treatment (it being  understood that, notwithstanding anything herein to the contrary, any terms of this  Settlement Agreement that are publicly filed with the SEC without confidential treatment  in accordance with the foregoing shall not be considered to be Confidential Information  hereunder).               (b)   Notwithstanding anything in Section 19(a) to the contrary,  Conformis shall have the right to issue a press release with respect to this Settlement  Agreement in the form attached hereto as Exhibit C on or as soon as reasonably   practicable (and in any event within five (5) business days) after the Effective Date.    Except as permitted in the immediately preceding sentence, neither Party shall issue a                                       23                                                                                

 

   press release with respect to this Settlement Agreement without the prior written consent  of the other Party.         20.   Binding Effect and Benefit         This Settlement Agreement shall be binding upon and shall inure to the benefit of  the Parties and their respective successors and assigns.  All licenses and non-asserts  granted under this Settlement Agreement will be deemed licenses of rights to intellectual  property for purposes of Section 365(n) of the United States Bankruptcy Code and a  licensee or recipient of a non-assert under this Settlement Agreement will retain and may  fully exercise all of its rights and elections under the U.S. Bankruptcy Code.         21.   Notices.  All notices and requests which are required or permitted to be  given in connection with this Settlement Agreement shall be deemed given as of the day  they are received either by messenger, delivery service, or in the United States of  America mail, postage prepaid, certified or registered, return receipt requested, and  addressed as follows, or to such other address as the Party to receive the notice or request  so designates by written notice to the other:   For Smith & Nephew:                                  Smith & Nephew Inc.        150 Minuteman Road        Andover, MA 01810        Attention: Chief Legal Officer                With a copy to:                Smith & Nephew Inc.        7135 Goodlett Farms Parkway        Cordova, TN 38106        Attention: Mark Gorman    For Conformis:                                  Conformis, Inc.        600 Technology Park Drive        Billerica, MA 01821        Attn: Chief Executive Officer        Attn: Chief Legal Officer / General        Counsel                 22.   No Modification Except By Writing         This Settlement Agreement may not be amended, modified, or altered except by a  writing executed by each of the Parties.                                      24                                                                              

 

           23.   Construction          This Settlement Agreement has been entered into after negotiation and review of   its terms and conditions by Parties with substantially equal bargaining power, each of  whom has had full and fair opportunity to consult with counsel, and is under no   compulsion to execute and deliver a disadvantageous agreement.  This Settlement   Agreement incorporates provisions, comments and suggestions proposed by all Parties,   and shall be deemed to have been drafted by all Parties.  No ambiguity or omission in this  Settlement Agreement shall be construed or resolved against any Party on the ground that   this Settlement Agreement or any of its provisions was drafted or proposed by that Party.    The language of this Settlement Agreement shall be construed as a whole according to its   fair meaning and not for or against any Party.          24.   Other Definitional Provisions          The words “hereof,” “herein” and “hereunder” and words of like import used in  this Settlement Agreement shall refer to this Settlement Agreement as a whole and not to  any particular provision of this Settlement Agreement.  The captions herein are included  for convenience of reference only and shall be ignored in the construction or  interpretation hereof.  References to Sections are to Sections of this Settlement   Agreement unless otherwise specified.  Any singular term in this Settlement Agreement   shall be deemed to include the plural, and any plural term the singular.  Whenever the   words “include,” “includes” or “including” are used in this Settlement Agreement, they  shall be deemed to be followed by the words “without limitation,” whether or not they are   in fact followed by those words or words of like import.  “Writing,” “written” and   comparable terms refer to printing, typing and other means of reproducing words   (including electronic media) in a visible form.  References to any statute, rule or   regulation shall be deemed to refer to such statute, rule or regulation as amended or  supplemented from time to time, including through the promulgation of applicable rules  or regulations.  References to any agreement or contract are to that agreement or contract  as amended, modified or supplemented from time to time in accordance with the terms  hereof and thereof.  References from or through any date mean, unless otherwise  specified, from and including or through and including, respectively.  References to  “law,” “laws” or to a particular statute or law shall be deemed also to include any and all  Applicable Law.          25.   Waiver         This Settlement Agreement may not be waived by any Party except by a writing  executed by the Party against whom the waiver is to be effective.  Without waiving the  applicable statutes of limitations, the Parties understand and agree that no forbearance by  any Party to enforce any provisions hereof or any rights existing hereunder shall  constitute a waiver of such provisions or rights, or be deemed to effect an amendment or  modification of this Settlement Agreement. The rights and remedies herein provided shall  be cumulative and not exclusive of any rights or remedies provided by Applicable Law.         26.   Integration                                       25                                                                                

 

         This Settlement Agreement contains the entire agreement by and among each  Party regarding the subject matter hereof, and supersedes and cancels all previous  communications among them concerning its subject matter.         27.   Severability         If any provision of this Settlement Agreement is held invalid or unenforceable for  any reason, such provision is fully separable, and shall thereupon be separated from the  remaining provisions of this Settlement Agreement, and the remaining provisions are  nevertheless validated and enforceable as if such of the provisions held invalid or  unenforceable were not part of this Settlement Agreement.         28.   Counterparts, Fax and Electronic Signatures         This Settlement Agreement may be executed in counterparts with the same effect  as if all Parties had signed the same document.  All such counterparts shall be construed  together and shall constitute a single agreement.  Fax and electronic copies of signatures  shall have the same effect as originals.         29.   Irreparable Harm Arising from Breach         The Parties agree that violation of the provisions contained in this Settlement  Agreement shall cause a Party to suffer immediate and irreparable harm for which there  is no adequate remedy at law.  Therefore, the Parties further agree that in the event of a  breach of this Settlement Agreement, the non-breaching Party shall be entitled to seek  preliminary and permanent injunctive relief or specific performance, in addition to all  other remedies available to it at law or equity.                                     * * *                                         26                                                                              

 

           In WITNESS WHEREOF, the Parties have executed this Settlement Agreement  through their duly authorized representatives as of the Effective Date:                                       SMITH & NEPHEW, INC.                                       By:  /s/ Mark J. Gormann                                           Name: Mark J. Gormann                                           Title: Assistant Secretary         Sept. 14, 2018                                          CONFORMIS INC.                                        By:  /s/ Paul S. Weiner                                           Name: Paul S. Weiner                                            Title: CFO                                        27                                                                                

 

                                                   EXECUTION VERSION                                                                                                          EXHIBIT A                       Smith & Nephew Excluded Patents    [**]                                                                                                                                                                                                       

 

                                                   EXECUTION VERSION                                                                                                          EXHIBIT B                      Smith & Nephew Existing Products    ANTHEM  ANTHOLOGY  BIRMINGHAM HIP  CONTOUR ACETABULAR RINGS  GENESIS II  JOURNEY UNI  JOURNEY PFJ  JOURNEY II  JOURNEY II BCS  JOURNEY II CR  JOURNEY II XR  LEGION  LEGION REVISION  LEGION HINGE  NAVIO  OXINIUM  POLAR3  POLARCUP  POLARSTEM  R3  REDAPT  REFLECTION  SYNERGY  TC-PLUS  VERILAST  VISIONAIRE  ZUK                                                                                                                                                                                                     

 

                                                   EXECUTION VERSION                                                                                                          EXHIBIT C                           Conformis Press Release   Conformis Announces Settlement of Patent Dispute with Smith & Nephew   Conformis to Receive $10.5 Million for Non-Exclusive License to Patient-Specific  Instrument Patents for use with off-the-shelf knee implants    BILLERICA, Mass., Sept. 17, 2018 (GLOBE NEWSWIRE) -- Conformis, Inc.  (NASDAQ:CFMS), a medical technology company that uses its proprietary iFit Image- to-Implant technology platform to develop, manufacture and sell joint replacement  implants that fit each patient's unique anatomy, announced today that it has entered into a  settlement and license agreement with Smith & Nephew that resolves all patent disputes  between Conformis and Smith & Nephew.   Pursuant to the agreement, Smith & Nephew is required to pay $10.5M to Conformis,  and the parties have entered into a limited patent cross-license.   “We are very pleased to announce the complete settlement of the various patent  proceedings we have with Smith & Nephew.  Through this settlement, we have once  again monetized our patient-specific instrument patents and steadfastly protected our core  business of patient-specific implants.” stated Mark Augusti, Conformis’ President and  Chief Executive Officer.   About Conformis, Inc.   Conformis is a medical technology company that uses its proprietary iFit Image-to- Implant technology platform to develop, manufacture and sell joint replacement implants  that are designed and manufactured to fit and conform to each patient’s unique anatomy.   Conformis offers a broad line of patient conforming total and partial knee systems and a  hip system that include sterilized single-use instruments delivered in a single package to  the hospital.  Conformis owns or exclusively in-licenses issued patents and pending  patent applications that cover patient-specific implants and instrumentation for all major  joints.  In clinical studies, Conformis iTotal CR demonstrated superior clinical outcomes,  including better function and greater patient satisfaction, compared to traditional, off-the- shelf implants.    For more information, visit www.conformis.com. To receive future releases in e-mail  alerts, sign up at http://ir.conformis.com/.    Cautionary Statement Regarding Forward-Looking Statements   Statements in this press release about our future expectations, plans and prospects,  including statements about the collection of royalty payments and settlement of patent  disputes, as well as other statements containing the words “anticipate,” “believe,”  “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,”                                                                                                                                                                                                    

 

   “predict,” “project,” “should,” “target,” “will,” or “would” and similar expressions,  constitute forward-looking statements within the meaning of the safe harbor provisions of  The Private Securities Litigation Reform Act of 1995. You should not place undue  reliance on our forward-looking statements. Actual results could differ materially from  the expectations disclosed in the forward-looking statements we make as a result of a  variety of risks and uncertainties, including risks and uncertainties described in the “Risk  Factors” sections of our public filings with the Securities and Exchange Commission. In  addition, the forward-looking statements included in this press release represent our  views as of the date hereof. We anticipate that subsequent events and developments may  cause our views to change. However, while we may elect to update these forward-looking  statements at some point in the future, we specifically disclaim any obligation to do so.  These forward-looking statements should not be relied upon as representing our views as  of any date subsequent to the date hereof.   CONTACT:   Investor contact   Oksana Bradley   ir@conformis.com   (781) 374-5598                                       31Exhibit

Exhibit 4.02

SUPPLEMENTAL INDENTURE
(First Mortgage Bonds)

SOUTHWESTERN PUBLIC SERVICE COMPANY

TO

U.S. BANK NATIONAL ASSOCIATION,

as Trustee
	
					
	 
	 
	 
	 
	 

This Instrument Grants A Security Interest By A Utility.

This Instrument Contains After-Acquired Property Provisions.

The following addresses for the parties to this Supplemental Indenture No. 6 are set out in Section 108 of the Indenture hereinafter referred to:

Trustee:    Company:

U.S. Bank National Association    Southwestern Public Service Company
U.S. Bank Corporate Trust Services    790 South Buchanan
60 Livingston Avenue, EP-MN-WS3C    Amarillo, Texas  79101
St. Paul, MN  55107-2292
Facsimile No. 651-495-8097
Attention: Joshua A. Hahn
	
					
	 
	 
	 
	 
	 

Supplemental Indenture No. 6

Dated as of October 1, 2018

Supplemental to the Indenture
dated as of August 1, 2011

Filed as Texas Utility Security Instrument File No. 11-0022610194
as supplemented by Supplemental Indentures filed with the Texas Secretary of State

Filed with New Mexico Secretary of State on August 2, 2011, as Public Utility Filing No. 599,
as supplemented by Supplemental Indentures filed with the New Mexico Secretary of State
	
					
	 
	 
	 
	 
	 

Establishing the Securities of Series No. 6,
Designated 4.40% First Mortgage Bonds, Series No. 6 due 2048

1

SUPPLEMENTAL INDENTURE NO. 6, dated as of October 1, 2018 between SOUTHWESTERN PUBLIC SERVICE COMPANY, a corporation duly organized and existing under the laws of the State of New Mexico (hereinafter sometimes called the “Company”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (hereinafter sometimes called the “Trustee”) under the Indenture, dated as of August 1, 2011 (hereinafter called the “Original Indenture”), as previously supplemented and as further supplemented by this Supplemental Indenture No. 6.  The Original Indenture and any and all indentures and all other instruments supplemental thereto are hereinafter sometimes collectively called the “Indenture.”

Recitals of the Company

The Original Indenture was authorized, executed and delivered by the Company to provide for the issuance from time to time of its Securities (such term and all other capitalized terms used herein without definition having the meanings assigned to them in the Original Indenture), to be issued in one or more series as contemplated therein, and to provide security for the payment of the principal of and premium, if any, and interest, if any, on the Securities.  The Original Indenture has been filed in the office of the Secretary of State of the State of New Mexico and in the office of the Secretary of State of the State of Texas, and notices with respect to such filings have been recorded in each county in New Mexico and each county in Texas in which the Company owns real property that is used or intended to be used in or in connection with the Electric Utility Business, as more fully set forth in Schedule A hereto.

The Company has heretofore executed and delivered to the Trustee the Supplemental Indentures referred to in Schedule B for the purpose of establishing a series of securities.

The Company desires to establish a new series of Securities to be designated “4.40% First Mortgage Bonds, Series No. 6 due 2048,” such series of Securities to be hereinafter sometimes called “Series No. 6.”

The Company has duly authorized the execution and delivery of this Supplemental Indenture No. 6 to establish the Securities of Series No. 6 and has duly authorized the issuance of such Securities; and all acts necessary to make this Supplemental Indenture No. 6 a valid agreement of the Company, and to make the Securities of Series No. 6 valid obligations of the Company, have been performed.

Granting Clauses

NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE NO. 6 WITNESSETH, that, in consideration of the premises and of the purchase of the Securities by the Holders thereof, and in order to secure the payment of the principal of and premium, if any, and interest, if any, on all Securities from time to time Outstanding and the performance of the covenants contained therein and in the Indenture and to declare the terms and conditions on which such Securities are secured, the Company hereby grants, bargains, sells, releases, conveys, assigns, transfers, mortgages, pledges, sets over and confirms to the Trustee, and grants to the Trustee a security interest in and lien on, the following:

2

Granting Clause First

All right, title and interest of the Company, as of the date of the execution and delivery of this Supplemental Indenture No. 6, in and to all property (other than Excepted Property), real, personal and mixed, located in the State of Texas or in the State of New Mexico and used or intended to be used in or in connection with the Electric Utility Business (whether or not such use is the sole use of such property), including all right, title and interest of the Company in and to the following property (other than Excepted Property) so located and so used or intended to be so used:  (a) all real property owned in fee, easements, servitudes, rights of way and other rights and interests in or relating to real property used or intended to be used in or in connection with the Electric Utility Business or relating to the occupancy or use of such real property, including but not limited to that described in Schedule C hereto; (b) all plants, generators, turbines, engines, boilers, fuel handling and transportation facilities, air and water pollution control and sewage and solid waste disposal facilities, whether or not control or disposal of such substances is the exclusive function or purpose of such facilities, and other machinery and facilities for the generation of electric energy; (c) all switchyards, lines, towers, substations, transformers and other machinery and facilities for the transmission of electric energy; (d) all lines, poles, conduits, conductors, meters, regulators and other machinery and facilities for the distribution of electric energy; (e) all buildings, offices, warehouses and other structures used or intended to be used in or in connection with the Electric Utility Business; (f) all pipes, cables, insulators, ducts, tools, computers and other data processing and/or storage equipment and other equipment, apparatus and facilities used or intended to be used in or in connection with the Electric Utility Business; (g) any or all of the foregoing properties in the process of construction; and (h) all other property, of whatever kind and nature, ancillary to or otherwise used or intended to be used in conjunction with any or all of the foregoing or otherwise, directly or indirectly, in furtherance of the Electric Utility Business;

Granting Clause Second

Subject to the applicable exceptions permitted by Section 709(d), Section 1203 and Section 1205 of the Original Indenture, all right, title and interest of the Company in and to all property (other than Excepted Property) of the kind and nature described in Granting Clause First which may be hereafter acquired by the Company, it being the intention of the Company that all such property acquired by the Company after the date of the execution and delivery of this Supplemental Indenture No. 6 shall be as fully embraced within and subjected to the Lien hereof as if such property were owned by the Company as of the date of the execution and delivery of this Supplemental Indenture No. 6;

Granting Clause Third

All other property of whatever kind and nature subjected or required to be subjected to the Lien of the Indenture by any of the provisions thereof;

3

Excepted Property

Expressly excepting and excluding, however, from the Lien and operation of the Indenture all Excepted Property of the Company, whether now owned or hereafter acquired;

TO HAVE AND TO HOLD all such property, real, personal and mixed, unto the Trustee, its successors in trust and their assigns forever;

SUBJECT, HOWEVER, to (a) Existing Liens, (b) Acquisition Liens, (c) Retained Interests and (d) any other Permitted Liens;

IN TRUST, NEVERTHELESS, for the equal and ratable benefit and security of the Holders from time to time of all Outstanding Securities without any priority of any such Security over any other such Security;

PROVIDED, HOWEVER, that the right, title and interest of the Trustee in and to the Mortgaged Property shall cease, terminate and become void in accordance with, and subject to the conditions set forth in, Article Eight of the Original Indenture; otherwise the Indenture, and the estate and rights thereby granted shall be and remain in full force and effect; and

THE PARTIES HEREBY FURTHER COVENANT AND AGREE as follows:

ARTICLE ONE

Securities of Series No. 6

There are hereby established the Securities of Series No. 6, which shall have the terms and characteristics set forth below (the lettered subdivisions set forth below corresponding to the lettered subdivisions of Section 301 of the Original Indenture):

(a)the title of the Securities of Series No. 6 shall be “4.40% First Mortgage Bonds, Series No. 6 due 2048”;

(b)the Securities of Series No. 6 shall initially be authenticated and delivered in the aggregate principal amount of $300,000,000. The Securities of Series No. 6 may be reopened and additional Securities of Series No. 6 may be issued in excess of the amount initially authenticated and delivered, provided that such additional Securities of Series No. 6 will contain the same terms (including the Stated Maturity and interest rate), except for the public offering price and issue date and, if applicable, the interest accrual date, as the other Securities of Series No. 6. Any such additional Securities of Series No. 6, together with the Securities of Series No. 6 initially authenticated, shall constitute a single series for purposes of the Indenture and shall be limited to an aggregate principal amount of $800,000,000;

(c)interest on the Securities of Series No. 6 shall be payable to the Persons in whose names such Securities (or one or more Predecessor Securities) are registered at the close of 

4

business on the Regular Record Date for such interest, except as otherwise expressly provided in the form of such Securities attached as Exhibit A hereto;

(d)the principal of the Securities of Series No. 6 shall be payable on November 15, 2048, the Stated Maturity for Series No. 6;

(e)the Securities of Series No. 6 shall bear interest at a rate of 4.40% per annum; interest shall accrue on the Securities of Series No. 6 from November 5, 2018 or the most recent date to which interest has been paid or duly provided for; the Interest Payment Dates for such Securities shall be May 15 and November 15 in each year, commencing May 15, 2019 and the Regular Record Dates with respect to the Interest Payment Dates for such Securities shall be May 1 and November 1 in each year, respectively (whether or not a Business Day);

(f)the Corporate Trust Office of U.S. Bank National Association in New York, New York shall be the place at which (i) the principal of, premium, if any, and interest, if any, on the Securities of Series No. 6 shall be payable, (ii) registration of transfer of such Securities may be effected, (iii) exchanges of such Securities may be effected and (iv) notices and demands to or upon the Company in respect of such Securities and the Indenture may be served; and U.S. Bank National Association shall be the Security Registrar for such Securities; provided, however, that the Company reserves the right to change, by one or more Officer’s Certificates, any such place or the Security Registrar; and provided, further, that the Company reserves the right to designate, by one or more Officer’s Certificates, its office in Minneapolis, Minnesota as any such place or itself as the Security Registrar;

(g)the Securities of Series No. 6 shall be redeemable at the option of the Company at any time prior to their maturity at the redemption prices specified in the form of such Securities attached as Exhibit A hereto;

(h)not applicable;

(i)the Securities of Series No. 6 shall be issuable in denominations of $1,000 and multiples of $1,000 in excess thereof;

(j)not applicable;

(k)not applicable;

(l)not applicable;

(m)not applicable;

(n)not applicable;

(o)not applicable;

(p)not applicable;

5

(q)the Securities of Series No. 6 are to be initially registered in the name of Cede & Co., as nominee for The Depository Trust Company (the “Depositary”).  Such Securities shall not be transferable or exchangeable, nor shall any purported transfer be registered, except as follows:

		
	(i)
	such Securities may be transferred in whole, and appropriate registration of transfer effected, if such transfer is by such nominee to the Depositary, or by the Depositary to another nominee thereof, or by any nominee of the Depositary to any other nominee thereof, or by the Depositary or any nominee thereof to any successor securities depositary or any nominee thereof; and

		
	(ii)
	such Securities may be exchanged for definitive Securities registered in the respective names of the beneficial holders thereof, and thereafter shall be transferable without restriction, if:

		
	(A)
	the Depositary, or any successor securities depositary, shall have notified the Company and the Trustee that it is unwilling or unable to continue to act as securities depositary with respect to such Securities or the Depositary has ceased to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, and the Trustee shall not have been notified by the Company within ninety (90) days of the identity of a successor securities depositary with respect to such Securities; or

		
	(B)
	the Company shall have delivered to the Trustee a Company Order to the effect that such Securities shall be so exchangeable on and after a date specified therein; or

		
	(C)
	(1) an Event of Default shall have occurred and be continuing, (2) the Trustee shall have given notice of such Event of Default pursuant to Section 1002 of the Original Indenture and (3) there shall have been delivered to the Company and the Trustee an Opinion of Counsel to the effect that the interests of the beneficial owners of such Securities in respect thereof will be materially impaired unless such owners become Holders of definitive Securities;

(r)not applicable;

(s)no service charge shall be made for the registration of transfer or exchange of the Securities of Series No. 6; provided, however, that the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the exchange or transfer;

(t)not applicable; and

		
	(u)
	(i)  If the Company shall have caused the Company’s indebtedness in respect of any Securities of Series No. 6 to have been satisfied and discharged prior to the 

6

Maturity of such Securities, as provided in Section 801 of the Original Indenture, the Company shall, promptly after the date of such satisfaction and discharge, give a notice to each Person who was a Holder of any of such Securities on such date stating (A)(1) the aggregate principal amount of such Securities and (2) the aggregate amount of any money (other than amounts, if any, deposited in respect of accrued interest on such Securities) and the aggregate principal amount of, the rate or rates of interest on, and the aggregate fair market value of, any Eligible Obligations deposited pursuant to Section 801 of the Original Indenture with respect to such Securities and (B) that the Company will provide (and the Company shall promptly so provide) to such Person, or any beneficial owner of such Securities holding through such Person (upon written request to the Company sent to an address specified in such notice), such other information as such Person or beneficial owner, as the case may be, reasonably may request in order to enable it to determine the federal income tax consequences to it resulting from the satisfaction and discharge of the Company’s indebtedness in respect of such Securities. Thereafter, the Company shall, within forty-five (45) days after the end of each calendar year, give to each Person who at any time during such calendar year was a Holder of such Securities a notice containing (X) such information as may be necessary to enable such Person to report its income, gain or loss for federal income tax purposes with respect to such Securities or the assets held on deposit in respect thereof during such calendar year or the portion thereof during which such Person was a Holder of such Securities, as the case may be (such information to be set forth for such calendar year as a whole and for each month during such year) and (Y) a statement to the effect that the Company will provide (and the Company shall promptly so provide) to such Person, or any beneficial owner of such Securities holding through such Person (upon written request to the Company sent to an address specified in such notice), such other information as such Person or beneficial owner, as the case may be, reasonably may request in order to enable it to determine its income, gain or loss for federal income tax purposes with respect to such Securities or such assets for such year or portion thereof, as the case may be. The obligation of the Company to provide or cause to be provided information for purposes of income tax reporting by any Person as described in the first two sentences of this paragraph shall be deemed to have been satisfied to the extent that the Company has provided or caused to be provided substantially comparable information pursuant to any requirements of the Internal Revenue Code of 1986, as amended from time to time (the “Code”) and United States Treasury regulations thereunder.

		
	(ii)
	Notwithstanding the provisions of subparagraph (i) above, the Company shall not be required to give any notice specified in such subparagraph or to otherwise furnish any of the information contemplated therein if the Company shall have delivered to the Trustee an Opinion of Counsel to the effect that the Holders of such Securities will not recognize income, gain or loss for federal income tax purposes as a result of the satisfaction and discharge of the Company’s indebtedness in respect of such Securities and such Holders will be subject to federal income taxation on 

7

the same amounts and in the same manner and at the same times as if such satisfaction and discharge had not occurred.

		
	(iii)
	Anything in this clause (u) to the contrary notwithstanding, the Company shall not be required to give any notice specified in subparagraph (i) or to otherwise furnish the information contemplated therein or to deliver any Opinion of Counsel contemplated by subparagraph (ii) if the Company shall have caused Securities of Series No. 6 to be deemed to have been paid for purposes of the Indenture, as provided in Section 801 of the Original Indenture, but shall not have effected the satisfaction and discharge of its indebtedness in respect of such Securities pursuant to such Section.

The Securities of Series No. 6 shall be substantially in the form attached hereto as Exhibit A and shall have such further terms as are set forth in such form.

ARTICLE TWO

Miscellaneous Provisions

This Supplemental Indenture No. 6 is a supplement to the Original Indenture. As previously supplemented and further supplemented by this Supplemental Indenture No. 6, the Original Indenture is in all respects ratified, approved and confirmed, and the Original Indenture, all previous supplements thereto and this Supplemental Indenture No. 6 shall together constitute one and the same instrument.

If any provision of this Supplemental Indenture No. 6 limits, qualifies or conflicts with the duties imposed by any of Sections 310 to 317, inclusive, of the Trust Indenture Act through operation of Section 318(c), such imposed duties shall control.

8

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture No. 6 to be duly executed as of the day and year first above written.

	
			
	 
	 
	SOUTHWESTERN PUBLIC SERVICE

	 
	 
	COMPANY

	 
	 
	 

	 
	By:
	/s/ Sarah W. Soong

	 
	 
	Name:   Sarah W. Soong

	 
	 
	Its:         Vice President and Treasurer

	 
	 
	 

STATE OF MINNESOTA        )
) ss.
COUNTY OF HENNEPIN        )

This instrument was acknowledged before me on the 24th day of October 2018, by Sarah W. Soong, the Vice President and Treasurer of Southwestern Public Service Company, a New Mexico corporation, on behalf of said corporation.

	
			
	 
	 
	/s/ Sharon M. Quellhorst

	 
	 
	Name:   Sharon M. Quellhorst

	 
	 
	Notary Public, State of Minnesota

	 
	 
	My commission expires: January 31, 2020

(Seal, if any)

9

	
			
	 
	 
	U.S. BANK NATIONAL ASSOCIATION,

	 
	 
	  Trustee

	 
	 
	 

	 
	By:
	/s/ Joshua A. Hahn

	 
	 
	Name:  Joshua A. Hahn

	 
	 
	Its:       Vice President

	 
	 
	 

STATE OF MINNESOTA    )
) ss.
COUNTY OF RAMSEY    )

This instrument was acknowledged before me on the 24th day of October 2018, by Joshua A. Hahn, a Vice President of U.S. Bank National Association, a national banking association, on behalf of said national banking association.

	
			
	 
	 
	/s/ Denise R. Landeen

	 
	 
	Name:   Denise R. Landeen

	 
	 
	Notary Public, State of Minnesota

	 
	 
	My commission expires: January 31, 2022

(Seal, if any)

10

EXHIBIT A

FORM OF SECURITY

(See legend at the end of this Security for
restrictions on transfer)

SOUTHWESTERN PUBLIC SERVICE COMPANY
4.40% First Mortgage Bond, Series No. 6 due 2048

	
				
	Original Interest Accrual Date:
	 
	[                   ]
	 

	Interest Rate:
	 
	4.40% per annum
	 

	Stated Maturity:
	 
	November 15, 2048
	 

	Interest Payment Dates:
	 
	May 15 and November 15
	 

	Regular Record Dates:
	 
	May 1 and November 1
	 

	CUSIP No.:
	 
	845743 BS1

	 

This Security is not a Discount Security
within the meaning of the within-mentioned Indenture

__________________________

	
			
	Principal Amount
	 
	Registered No.

	 
	 
	 

	$
	 
	 

SOUTHWESTERN PUBLIC SERVICE COMPANY, a corporation duly organized and existing under the laws of the State of New Mexico (herein called the “Company,” which term includes any successor corporation under the Indenture referred to below), for value received, hereby promises to pay to

, or registered assigns, the principal sum of

Dollars on the Stated Maturity specified above, and to pay interest thereon from the Original Interest Accrual Date specified above or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually in arrears on the Interest Payment Dates specified above in each year, commencing May 15, 2019 and at Maturity, at the Interest Rate per annum specified above, until the principal hereof is paid or duly provided for.  The interest so payable, and paid or duly provided for, on any Interest Payment Date shall, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date specified above (whether or not a Business Day) next preceding such Interest Payment Date.  Notwithstanding the foregoing, interest payable at Maturity shall be paid to the Person to whom principal shall be paid.  Except as otherwise provided in said Indenture, any such interest not so paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice of which shall be given to 

Holders of Securities of this series not less than 15 days prior to such Special Record Date, or be paid in such other manner as permitted by the Indenture.

Payment of the principal of this Security and interest hereon at Maturity shall be made upon presentation of this Security at the Corporate Trust Office of U.S. Bank National Association in New York, New York, or at such other office or agency as may be designated for such purpose by the Company from time to time.  Payment of interest on this Security (other than interest at Maturity) shall be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register, except that if such Person shall be a securities depositary, such payment may be made by such other means in lieu of check as shall be agreed upon by the Company, the Trustee and such Person.  Payment of the principal of and interest on this Security, as aforesaid, shall be made in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts.

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and issuable in one or more series under and equally secured by an Indenture, dated as of August 1, 2011 (such Indenture as originally executed and delivered and as supplemented or amended from time to time thereafter, together with any constituent instruments establishing the terms of particular Securities, being herein called the “Indenture”), between the Company and U.S. Bank National Association as trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a description of the property mortgaged, pledged and held in trust, the nature and extent of the security and the respective rights, limitations of rights, duties and immunities of the Company, the Trustee and the Holders of the Securities thereunder and of the terms and conditions upon which the Securities are, and are to be, authenticated and delivered and secured.  The acceptance of this Security shall be deemed to constitute the consent and agreement by the Holder hereof to all of the terms and provisions of the Indenture.  This Security is one of the series designated above.

If any Interest Payment Date, any Redemption Date or the Stated Maturity shall not be a Business Day (as hereinafter defined), payment of the amounts due on this Security on such date may be made on the next succeeding Business Day; and, if such payment is made or duly provided for on such Business Day, no interest shall accrue on such amounts for the period from and after such Interest Payment Date, such Redemption Date or Stated Maturity, as the case may be, to such Business Day.

This Security shall be redeemable at the option of the Company, in whole or in part, at any time prior to May 15, 2048 (the “Par Call Date”) at a “make whole” redemption price equal to the greater of (1) 100% of the principal amount of this Security being redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest on this Security, or portion hereof, being redeemed that would be due if this Security matured on the Par Call Date (excluding the portion of any such interest accrued to but excluding the Redemption Date), discounted to but excluding the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 20 basis points plus, in each case, accrued and unpaid interest thereon to but excluding the Redemption Date.  This 

Exhibit A-2

Security shall be redeemable at the option of the Company at any time on or after the Par Call Date, in whole or in part, at 100% of the principal amount of this Security being redeemed plus accrued and unpaid interest thereon to but excluding the Redemption Date.

“Comparable Treasury Issue” means the U.S. Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of this Security (assuming, for this purpose, that this Security matured on the Par Call Date) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to such remaining term of this Security.

“Comparable Treasury Price” means with respect to any Redemption Date (1) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest Reference Treasury Dealer Quotations for the Redemption Date, or (2) if the Independent Investment Banker obtains fewer than four Reference Treasury Dealer Quotations, the average of all of such Reference Treasury Dealer Quotations.

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Trustee after consultation with the Company.

“Primary Treasury Dealer” means any primary U.S. Government securities dealer in the United States.

“Reference Treasury Dealer” means (1) each of Wells Fargo Securities, LLC, Scotia Capital (USA) Inc., a Primary Treasury Dealer designated by each of KeyBanc Capital Markets Inc. and PNC Capital Markets LLC and any other Primary Treasury Dealer designated by, and not affiliated with KeyBanc Capital Markets Inc., PNC Capital Markets, LLC, Scotia Capital (USA) Inc. or Wells Fargo Securities, LLC, or each of their respective affiliates and successors, provided, however, that if any of the foregoing or any of their respective designees ceases to be a Primary Treasury Dealer, the Company will appoint another Primary Treasury Dealer as a substitute and (2) any other Primary Treasury Dealer selected by the Company after consultation with an Independent Investment Banker.

“Reference Treasury Dealer Quotations” means, for any Reference Treasury Dealer and any Redemption Date, the average, as determined by the 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 the Independent Investment Banker by the Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding the Redemption Date.

“Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for such Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to  the Comparable Treasury Price for such Redemption Date.  The Treasury Rate will be calculated on the third Business Day preceding the Redemption Date.

Exhibit A-3

If an Event of Default shall occur and be continuing, the principal of this Security may be declared due and payable in the manner and with the effect provided in the Indenture.

The Indenture permits, with certain exceptions as therein provided, the Trustee to enter into one or more supplemental indentures for the purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of, the Indenture with the consent of the Holders of not less than a majority in aggregate principal amount of the Securities of all series then Outstanding under the Indenture, considered as one class; provided, however, that if there shall be Securities of more than one series Outstanding under the Indenture and if a proposed supplemental indenture shall directly affect the rights of the Holders of Securities of one or more, but less than all, of such series, then the consent only of the Holders of a majority in aggregate principal amount of the Outstanding Securities of all series so directly affected, considered as one class, shall be required; and provided, further, that if the Securities of any series shall have been issued in more than one Tranche and if the proposed supplemental indenture shall directly affect the rights of the Holders of Securities of one or more, but less than all, of such Tranches, then the consent only of the Holders of a majority in aggregate principal amount of the Outstanding Securities of all Tranches so directly affected, considered as one class, shall be required; and provided, further, that the Indenture permits the Trustee to enter into one or more supplemental indentures for limited purposes without the consent of any Holders of Securities.  The Indenture also contains provisions permitting the Holders of a majority in principal amount of the Securities then Outstanding, on behalf of the Holders of all Securities, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange therefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

As provided in the Indenture and subject to certain limitations therein set forth, this Security or any portion of the principal amount hereof will be deemed to have been paid for all purposes of the Indenture and to be no longer Outstanding thereunder, and, at the election of the Company, the Company’s entire indebtedness in respect thereof will be satisfied and discharged, if there has been irrevocably deposited with the Trustee or any Paying Agent (other than the Company), in trust, money in an amount which will be sufficient and/or Eligible Obligations, the principal of and interest on which when due, without regard to any reinvestment thereof, will provide moneys which, together with moneys so deposited, will be sufficient to pay when due the principal of and interest on this Security when due.

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender of this Security for registration of transfer at the corporate office of U.S. Bank National Association in New York, New York, or such other office or agency as may be designated by the Company from time to time, 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 Securities of this series of authorized 

Exhibit A-4

denominations and of like tenor and aggregate principal amount, will be issued to the designated transferee or transferees.

The Securities of this series are issuable only as registered Securities, without coupons, and in denominations of $1,000 and multiples of $1,000 in excess thereof.  As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of the same series, of any authorized denominations, as requested by the Holder surrendering the same, and of like tenor upon surrender of the Security or Securities to be exchanged at the office of U.S. Bank National Association in New York, New York, or such other office or agency as may be designated by the Company from time to time.

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 Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the absolute owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

The Indenture and the Securities shall be governed by and construed in accordance with the laws of the State of New York (including without limitation Section 5-1401 of the New York General Obligations Law or any successor to such statute), except to the extent that the Trust Indenture Act of 1939, as then in effect or any successor statute shall be applicable and except to the extent that the law of any jurisdiction wherein any portion of the property mortgaged pursuant to the Indenture or any indenture supplemental thereto is located shall mandatorily govern the attachment, perfection, priority or enforcement of the lien of the Indenture and all indentures supplemental thereto with respect to such portion of the mortgaged property.

As used herein, “Business Day” means any day, other than a Saturday or Sunday, that is not a day on which the offices of the Trustee in The City of New York, New York, or other city in which is located any office or agency maintained for the payment of principal or interest on this Security, are generally authorized or required by law or executive order to remain closed.  All other terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

As provided in the Indenture, no recourse shall be had for the payment of the principal of or premium, if any, or interest on any Securities, or any part thereof, or for any claim based thereon or otherwise in respect thereof, or of the indebtedness represented thereby, or upon any obligation, covenant or agreement under the Indenture, against, and no personal liability whatsoever shall attach to, or be incurred by, any incorporator, shareholder, officer or director, as such, past, present or future of the Company or of any predecessor or successor corporation (either directly or through the Company or a predecessor or successor corporation), whether by virtue of any constitutional provision, statute or rule of law, or by the enforcement of any 

Exhibit A-5

assessment or penalty or otherwise; it being expressly agreed and understood that the Indenture and all the Securities are solely corporate obligations and that any such personal liability is hereby expressly waived and released as a condition of, and as part of the consideration for, the execution of the Indenture and the issuance of the Securities.

Unless the certificate of authentication hereon has been executed by the Trustee or an Authenticating Agent by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

Exhibit A-6

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

	
			
	 
	 
	SOUTHWESTERN PUBLIC SERVICE

	 
	 
	COMPANY

	 
	 
	 

	 
	By:
	 

	 
	Name:
	 

	 
	Its:
	 

	 
	 
	 

CERTIFICATE OF AUTHENTICATION

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

Dated: 
	
			
	 
	 
	US BANK NATIONAL ASSOCIATION

	 
	 
	as Trustee

	 
	 
	 

	 
	By:
	 

	 
	 
	Authorized Officer

	 
	 
	 

	 
	 
	 

Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York Corporation (“DTC”), to the Company or its agent for registration of transfer, exchange, or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

This Security may not be transferred or exchanged, nor may any purported transfer be registered, except (i) this Security may be transferred in whole, and appropriate registration of transfer effected, if such transfer is by Cede & Co., as nominee for DTC (the “Depositary”), to the Depositary, or by the Depositary to another nominee thereof, or by any nominee of the Depositary to any other nominee thereof, or by the Depositary or any nominee thereof to any successor securities depositary or any nominee thereof; and (ii) this Security may be exchanged for definitive Securities registered in the respective names of the beneficial holders hereof, and thereafter shall be transferable without restrictions 

Exhibit A-7

if:  (A) the Depositary, or any successor securities depositary, shall have notified the Company and the Trustee that it is unwilling or unable to continue to act as securities depositary with respect to the Securities and the Trustee shall not have been notified by the Company within ninety (90) days of the identity of a successor securities depositary with respect to the Securities; or (B) the Company shall have delivered to the Trustee a Company Order to the effect that the Securities shall be so exchangeable on and after a date specified therein or (C) (1) an Event of Default shall have occurred and be continuing, (2) the Trustee shall have given notice of such Event of Default pursuant to Section 1002 of the Original Indenture and (3) there shall have been delivered to the Company and the Trustee an Opinion of Counsel to the effect that the interests of the beneficial owners of such Securities in respect thereof will be materially impaired unless such owners become Holders of definitive Securities.

FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto

	
			
	[please insert social security or other identifying number of assignee]

	 
	 
	 

	 
	 
	 

	[please print or typewrite name and address of assignee]

the within Security of SOUTHWESTERN PUBLIC SERVICE COMPANY and does hereby irrevocably constitute and appoint              , Attorney, to transfer said Security on the books of the within-mentioned 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 Security in every particular without alteration or enlargement or any change whatsoever.

Exhibit A-8

SCHEDULE A

The Indenture dated as of August 1, 2011, granted by Southwestern Public Service Company to U.S. Bank National Association, Trustee, was filed with the Secretary of State of the State of Texas on August 2, 2011 as Utility Security Instrument No. 11-0022610194.
In accordance with Texas Business and Commerce Code Section 261.011, a Notice of Utility Security Instrument Affecting Real Property was thereafter recorded in each Texas county in which any of the Mortgaged Property consisting of real property was located as of the Effective Date of such Indenture. The following table sets forth recording information relating to the recordation, in each of the specified Texas counties, of such Notice of Utility Security Instrument Affecting Real Property:

	
					
	COUNTY
	DATE
	RECEPTION NUMBER
	BOOK/FILM
	PAGE

	 
	 
	 
	 
	 

	Andrews
	8/3/11
	112770
	N/A
	N/A

	Armstrong
	8/3/11
	2011276
	53
	790

	Bailey
	8/3/11
	201100016286
	N/A
	N/A

	Borden
	8/3/11
	111124
	N/A
	N/A

	Briscoe
	8/3/11
	11271
	N/A
	N/A

	Carson
	8/3/11
	1100000862
	N/A
	N/A

	Castro
	8/3/11
	59278
	335
	796

	Cochran
	8/3/11
	13897
	N/A
	N/A

	Cottle
	8/3/11
	2011-291
	194
	708

	Crosby
	8/3/11
	235843
	N/A
	N/A

	Dallam
	8/2/11
	164351
	149
	384

	Deaf Smith
	8/3/11
	1493
	N/A
	N/A

	Ector
	8/3/11
	201100011005
	N/A
	N/A

	Floyd
	8/3/11
	110857
	N/A
	N/A

	Foard
	8/3/11
	68419
	247
	71

	Gaines
	8/3/11
	20113945
	N/A
	N/A

	Garza
	8/3/11
	111229
	N/A
	N/A

Schedule A-1

	
					
	COUNTY
	DATE
	RECEPTION NUMBER
	BOOK/FILM
	PAGE

	Gray
	8/3/11
	019194
	N/A
	N/A

	Hale
	8/3/11
	2011002855
	N/A
	N/A

	Hansford
	8/3/11
	78454
	382
	511

	Hartley
	8/3/11
	100087
	N/A
	N/A

	Hemphill
	8/3/11
	059371
	N/A
	N/A

	Hockley
	8/3/11
	00002996
	N/A
	N/A

	Hutchinson
	8/3/11
	343845
	1664
	137

	Lamb
	8/3/11
	1442
	N/A
	N/A

	Lipscomb
	8/3/11
	N/A
	502
	782

	Lubbock
	8/3/11
	2011026116
	N/A
	N/A

	Lynn
	8/3/11
	20112298
	N/A
	N/A

	Midland
	8/3/11
	15266
	N/A
	N/A

	Moore
	8/2/11
	0176902
	702
	18

	Motley
	8/3/11
	N/A
	102
	237

	Ochiltree
	8/3/11
	95434
	N/A
	N/A

	Oldham
	8/3/11
	11429
	N/A
	N/A

	Parmer
	8/3/11
	51211
	N/A
	N/A

	Potter
	8/2/11
	01200092
	N/A
	N/A

	Randall
	8/2/11
	2011012189
	N/A
	N/A

	Roberts
	8/3/11
	044416
	N/A
	N/A

	Sherman
	8/3/11
	23551
	297
	756

	Swisher
	8/3/11
	2011-0678
	392
	314

	Terry
	8/3/11
	252458
	N/A
	N/A

	Wheeler
	8/3/11
	N/A
	640
	738

Schedule A-2

	
					
	COUNTY
	DATE
	RECEPTION NUMBER
	BOOK/FILM
	PAGE

	Wilbarger
	8/3/11
	00112766
	636
	602

	Yoakum
	8/3/11
	20111463
	N/A
	N/A

Schedule A-3

The Indenture dated as of August 1, 2011, granted by Southwestern Public Service Company to U.S. Bank National Association, Trustee, was filed with the Secretary of State of the State of New Mexico on August 2, 2011 under the Public Utility Act, receiving Public Utility Filing No. 599. Concurrently with such filing, a Uniform Commercial Code financing statement, to which a copy of such Indenture was appended as an exhibit, was filed in the Uniform Commercial Code records of the Secretary of State of the State of New Mexico on August 2, 2011 as UCC Filing No. 20110012866J.
In accordance with New Mexico Statutes Annotated, 1978, Section 62‐13‐11, a Notice of Filing of Indenture with New Mexico Secretary of State, to which a copy of such Indenture was appended as an exhibit, was thereafter recorded in each New Mexico county in which any of the Mortgaged Property consisting of real property was located as of the Effective Date of such Indenture. The following table sets forth recording information relating to the recordation, in each of the specified New Mexico counties, of such Notice of Filing of Indenture with New Mexico Secretary of State:

	
					
	COUNTY
	DATE
	RECEPTION NUMBER
	BOOK/FILM
	PAGE

	 
	 
	 
	 
	 

	Chaves
	8/3/11
	340593
	N/A
	N/A

	Curry
	8/3/11
	110005245
	N/A
	N/A

	Eddy
	8/3/11
	1107879
	N/A
	N/A

	Lea
	8/3/11
	33578
	N/A
	N/A

	Quay
	8/3/11
	201108030006
	N/A
	N/A

	Roosevelt
	8/3/11
	20112258
	N/A
	N/A

Schedule A-4

The following table sets forth recording information relating to the recordation, in each of the specified New Mexico counties, of a Notice of Filing of Supplemental Indenture with the New Mexico Secretary of State with respect to Supplemental Indenture No. 1:

	
					
	COUNTY
	DATE
	RECEPTION NUMBER
	BOOK/FILM
	PAGE

	 
	 
	 
	 
	 

	Chaves
	8/8/11
	340698
	N/A
	N/A

	Curry
	8/8/11
	110005352
	N/A
	N/A

	Eddy
	8/8/11
	1107998
	N/A
	N/A

	Lea
	8/8/11
	33734
	N/A
	N/A

	Quay
	8/8/11
	201108080003
	N/A
	N/A

	Roosevelt
	8/8/11
	20112316
	N/A
	N/A

The following table sets forth recording information relating to the recordation, in each of the specified New Mexico counties, of a Notice of Filing of Supplemental Indenture with the New Mexico Secretary of State with respect to Supplemental Indenture No. 2:

	
					
	COUNTY
	DATE
	RECEPTION NUMBER
	BOOK/FILM
	PAGE

	 
	 
	 
	 
	 

	Chaves
	6/18/14
	389726
	N/A
	N/A

	Curry
	6/18/14
	157778190
	N/A
	N/A

	Eddy
	6/18/14
	1824479
	N/A
	N/A

	Lea
	6/18/14
	39612
	N/A
	N/A

	Quay
	6/18/14
	20149266515
	N/A
	N/A

	Roosevelt
	6/18/14
	20141875
	N/A
	N/A

Schedule A-5

The following table sets forth recording information relating to the recordation, in each of the specified New Mexico counties, of a Notice of Filing of Supplemental Indenture with the New Mexico Secretary of State with respect to Supplemental Indenture No. 3:

	
					
	COUNTY
	DATE
	RECEPTION NUMBER
	BOOK/FILM
	PAGE

	 
	 
	 
	 
	 

	Chaves
	6/18/14
	389727
	N/A
	N/A

	Curry
	6/18/14
	157778191
	N/A
	N/A

	Eddy
	6/18/14
	1824480
	N/A
	N/A

	Lea
	6/18/14
	39613
	N/A
	N/A

	Quay
	6/18/14
	20149266516
	N/A
	N/A

	Roosevelt
	6/18/14
	20141876
	N/A
	N/A

The following table sets forth recording information relating to the recordation, in each of the specified New Mexico counties, of a Notice of Filing of Supplemental Indenture with the New Mexico Secretary of State with respect to Supplemental Indenture No. 4:

	
					
	COUNTY
	DATE
	RECEPTION NUMBER
	BOOK/FILM
	PAGE

	 
	 
	 
	 
	 

	Chaves
	8/19/16
	407833
	N/A
	N/A

	Curry
	8/19/16
	189674134
	N/A
	N/A

	Eddy
	8/19/16
	22399408
	N/A
	N/A

	Lea
	8/19/16
	411897
	N/A
	N/A

	Quay
	8/19/16
	20167359981
	N/A
	N/A

	Roosevelt
	8/19/16
	20162074
	N/A
	N/A

Schedule A-6

The following table sets forth recording information relating to the recordation, in each of the specified New Mexico counties, of a Notice of Filing of Supplemental Indenture with the New Mexico Secretary of State with respect to Supplemental Indenture No. 5:

	
					
	COUNTY
	DATE
	RECEPTION NUMBER
	BOOK/FILM
	PAGE

	 
	 
	 
	 
	 

	Chaves
	8/17/17
	410921
	N/A
	N/A

	Curry
	8/17/17
	202655927
	N/A
	N/A

	Eddy
	8/17/17
	28402333
	N/A
	N/A

	Lea
	8/17/17
	422035
	N/A
	N/A

	Quay
	8/17/17
	20176648665
	N/A
	N/A

	Roosevelt
	8/17/17
	20174088
	N/A
	N/A

Schedule A-7

SCHEDULE B

	
							
	Date of Supplemental Indenture
	 
	

Series of Bonds
	 
	Principal Amount Issued
	 
	Principal Amount Outstanding

	 
	 
	 
	 
	 
	 
	 

	August 3, 2011
	 
	1
	 
	$400,000,000
	 
	$400,000,000

	June 1, 2014
	 
	2
	 
	$250,000,000
	 
	$0

	June 1, 2014
	 
	3
	 
	$350,000,000
	 
	$350,000,000

	August 1, 2016
	 
	4
	 
	$300,000,000
	 
	$300,000,000

	August 1, 2017
	 
	5
	 
	$450,000,000
	 
	$450,000,000

Schedule B-1

SCHEDULE C

DESCRIPTION OF PROPERTY

The property referred to in Granting Clause Second of the Indenture includes, without limitation, the Company’s right, title and interest in and to the Lands and Water Rights in the State of Texas and the State of New Mexico described below, together with all property related, used or appurtenant thereto of the kind and nature described in Granting Clause First (other than Excepted Property).

THE FOLLOWING PROPERTIES ARE IN THE STATE OF TEXAS
The property referred to in Granting Clause Second of the Indenture includes, without limitation, the Company’s right, title and interest in and to the lands acquired by the Company in 2016, 2017 and 2018, not previously described in prior filings of the Indenture.  These additional properties are described in the following Deeds into the Company and referenced recorded documents (the “Lands”), together with all property related, used or appurtenant thereto of the kind and nature described in Granting Clause First (other than Excepted Property) (the “Property Accessions”):
Bailey County, Texas

	
			
	SPS Id. No.
	Common Name
	Deed into Southwestern Public Service Company Recorded at

	                                                  5242

	                                                Blue Cloud Substation
	

Document No. 2017-22453, and Volume 321, Page 79 et seq., Official Public Records, Bailey County, Texas executed by Blue County Wind Energy, LLC and dated September 29, 2017, and recorded October 16, 2017

as to the following property:

An 11.90 acres, more or less, tract of land out of Labor 24, League 209, Deaf Smith County School Land, Bailey County, Texas described by metes and bounds as follows:
BEGINNING at a 1⁄2 inch iron rod with cap found in the intersection of F. M. Highway 298 and a graded county road for the Northeast corner of Labor 24 and the Northeast corner of this tract;
THENCE, S. 0°08' W. with the East line of Labor 24 a distance of 720.00 feet to the Southeast corner of this tract;
THENCE, N. 89° 29' W., at 25.00 feet pass a 1⁄2 inch steel rod with cap (TX No. 5020) set in reference continuing a total distance of 720.00 feet to a 1⁄2 inch steel rod with cap (TX No. 5020) set for the Southwest corner of this tract;
THENCE, N. 0° 08' E., at 680.00 feet pass a 1/2 inch steel rod with cap (TX No. 5020) set in the South right-of-way line of said highway as recorded in Volume 

Schedule C-1

52, Page 41 of the Deed Records of Bailey County, Texas continuing a total distance of 720.00 feet to the Northwest corner of this tract in the North line of Labor 24;
THENCE, S. 89°29' E. a distance of 720.00 feet to the POINT OF BEGINNING; and 
containing 11.90 acres, more or less.
Cochran County, Texas

	
			
	SPS Id. No.
	Common Name
	Deeds into Southwestern Public Service Company Recorded at

	

5252
	                                                          Lost Draw Substation

	

Cochran County Clerk’s Document No. 23296, and Volume 357, Page 582 et seq., Official Public Records, Cochran County, Texas executed by Wildcat Ranch Wind Project, LLC dated June 1, 2018, and recorded June 18, 2018

as to the following property:
A 5.01 acre, more or less, tract of land in Cochran County, Texas League 113, Abstract 102, Potter County School Lands.  Said 5.01 acre tract being a part of Todd Fields and Zoellen Fields, land as recorded in Volume 277, Page 673, Official Public Records, Cochran County, Texas, described as follows:
Commencing at a 2" pipe found at the Southwest corner of land described in said Volume 277, Page 673. Same being in the North line of Apache Corporation Land recorded in Volume 217, Page 853. Thence S. 86 51'49" E. 6228.07' along the South line of said field tract, same being the North line of said Apache Corporation tract, to a set 5/8" rebar with cap stamped B. Scott RPLS 5280 and the Southwest corner of said 5.01 acre tract same being the POINT OF BEGINNING;
THENCE, N. 02° 50' 55" E. 483.63 to a set 5/8" rebar with cap stamped B. Scott RPLS 5280;
THENCE, N. 45° 19' 10" E. 61.95' to a set 5/8" rebar with cap stamped B. Scott RPLS 5280;
THENCE, S. 86° 51' 41" E. 371.92' to a set 5/8" rebar with cap stamped B. Scott RPLS 5280;
THENCE, S. 02° 50' 55" W. 529.53' to a set 5/8" rebar with cap stamped B. Scott RPLS 5280 in the said South line of Fields tract and North line of said Apache Corporation tract; and 

Schedule C-2

Thence, along said common line  N. 86° 51' 49' W. 413.75' to the POINT OF BEGINNING, 
containing 5.01 acres, more or less.
Crosby County, Texas

	
			
	SPS Id. No.
	Common Name
	Deed into Southwestern Public Service Company Recorded at

	                                                     5241
	

Blanco Substation

	                                                  Document No. 242950, and Volume 321, Page 79 et seq., Official Public Records, Crosby County, Texas executed by Fiber Winds Energy, LLC and dated May 4, 2017 and recorded May 19, 2017

as to the following property:
An 8.00 acre, more or less, tract of land in the Northwest corner of Section 888, Block Z-2, A.B. & M. Survey, Abstract Number 1089, Crosby County, Texas, and being a portion of that same certain 269 acre tract of land conveyed to David Anderson Prewitt described in a Warranty Deed recorded in Volume 20, Page 55 of the Official Public Records of Crosby County, Texas, said 8.00 acre tract being further described by metes and bounds as follows:
BEGINNING at a 1/2" iron rod with a cap marked "Stevens RPLS 4339" set for the Northwest corner of this tract, having coordinates of Northing: 7,333,470.15 and Easting: 1,061,155.55, Texas Coordinate System of 1983 (2011), Texas North Central Zone, whence a 1/2" iron rod with a cap marked "Stevens RPLS 4339" set for the Northwest corner of said Section 888 bears N. 01° 42'  10" E. a distance of 40.00 feet, said section corner having coordinates of Northing: 7,333,510.13 and Easting: 1,061,156.74, Texas Coordinate System of 1983, Texas North Central Zone;
THENCE, S. 88° 19'  09"  E., 40.00 feet South of and parallel with the North line of said Section 888, a distance of 779.48 feet to a 1/2" iron rod with a cap marked ''Stevens RPLS 4339" set for the Northeast corner of this tract, whence a 1/2" iron rod with a cap marked "Stevens RPLS 4339" set for the Northeast corner of said 269 acre tract bears S. 88° 19' 09" E. a distance of 40.00 feet and N. 01° 42' 10" E. a distance of 40.00 feet;
THENCE, S. 01° 42' 10" W., 40.00 feet West of and parallel with the West line of said 269 acre tract, a distance of 447.07 feet to a 1/2" iron rod with a cap marked "Stevens RPLS 4339" set for the Southeast corner of this tract;

Schedule C-3

THENCE, N. 88° 19' 09" W., a distance of 779.48 feet to a 1/2" iron rod with a cap marked "Stevens RPLS 4339" set in the West line of said section 888 for the Southwest corner of this tract;
THENCE, N. 01° 42' 10" E., a distance of 447.07 feet to the POINT OF BEGINNING; Bearings are Grid Bearings relative to the Texas Coordinate System of 1983 (2011), Texas North Central Zone. Convergence to True North Bearings Is -01° 37' 52.7". The combined scale factor is 0.99979906. Distances are at surface, in U.S. survey feet, and 
containing 8.00 acres, more or less.
Hale County and Lubbock County, Texas

	
			
	SPS Id. No.
	Common Name
	Deed into Southwestern Public Service Company Recorded at

	

5253
	                                                    J17 ROW Plank Property
	                                                           Hale County Clerk’s Document No. 2018032760, Official Public Records, Hale County, Texas, recorded September 10, 2018 in Hale County, Texas and Lubbock County Clerk’s Document No. 2018-002696, recorded August 27, 2018 in Lubbock County, Texas, executed by Jeff Plank and Louise Plank and dated August 24, 2018

as to the following property:
The surface estate only of a tract of land located in the West half of Section 8, Block CK, G.C. & S.F. Railroad Company Survey, Lubbock and Hale Counties, Texas, as held on the ground being a portion of that tract described in Volume 9936, Page 160 of the Official Public Records of Lubbock County, Texas and further described as follows:
BEGINNING at a mag nail and shiner suet in the centerline of F.M. Highway 597, and the North line of that 325.39 acre tract described in Volume 298, Page 639 of the Deed Records of Lubbock County, Texas for the Southwest corner of this tract which bears S. 0° 16' 05" W. a distance of 5335.2 feet from a 1/2" iron rod found at the Northeast corner of Section 6, Block CK and the Northwest corner of said Section 8 and a 1/2" iron rod found at the occupied Southeast corner of said Section 6 bears S. 0° 16'  05" W. a distance of 33.4 feet;
Thence, N. 0° 16' 05" E., along the common line of said Sections 6 and 8, at a distance of 50.0 feet pass 1/2" iron rod with cap set in the North Right of Way of said Highway, in all a distance of 1320.0 feet to a 1/2" iron rod with cap set for the Northwest corner of this tract;

Schedule C-4

Thence, S. 89° 56' 04" E., a distance of 347.5 feet to a 1/2" iron rod with cap set for the Northeast corner of this tract;
Thence, S. 0° 01' 27" E., at a distance of 1270.0 feet pass a 1/2" iron rod with cap set in said Right of Way line, in all a distance of 1320.0 feet to a point in said centerline and said North line for the Southeast corner of this tract; and
Thence N. 89° 56' 04" W., along said centerline and said North line, a distance of 354.2 feet to the PLACE OF BEGINNING.
Lamb County, Texas
	
			
	SPS Id. No.

	Common Name
	Deed into Southwestern Public Service Company Recorded at

	

5239

	

Lamb County Interchange
	

Lamb County Clerk’s Document No. 810, and in Volume 754, Page 702 et seq., Official Public Records, Lamb County, Texas executed by PDH Farms, Inc. and dated May 23, 2017 and recorded May 24, 2017

as to the following property:
A 3.30 acres, more or less, tract of land out of the Southeast Quarter of Labor 19, League 673, State Capitol Lands, Lamb County, Texas, further being out of that certain tract of land described In that certain instrument recorded in Volume 733, Page 856 as filed in the Office of the County Clerk of Lamb County, Texas, said 3.30 acre tract having been surveyed on the ground by Furman Lend Surveyors, Inc. and being described by metes and bounds as follows:
BEGINNING at a 1/2 inch iron rod found for the Northwest corner of that certain 5 acre tract of land described in Volume 126, Page 346 as filed in the Office of the County Clerk of Lamb County, Texas, same being the Northeast and BEGINNING CORNER of this tract of land, from when a 3/8 inch iron rod with cap found for the Northeast corner of said 5 acre tract of land bears N. 89° 01' 18" E . (Base Line) 466.75 feet;
THENCE, S. 00° 53' 38" E.., 463.35 feet along the West line of said 5 acre tract of land to a 1/2 inch iron rod with cap stamped "FURMAN RPLS" set for the Southwest corner of said 5 acre tract of land, same being the Southeast corner of this tract of land, also being a point in the common line of said Labor 19 and Labor 22, League 673;
THENCE, S. 89° 01' 18" W. 310.08 feet along said common line of Labor 19 and Labor 22 to a 1/2 inch iron rod with cap stamped "FURMAN RPLS" set for the Southwest corner of this tract of land;

Schedule C-5

THENCE, N. 00° 53' 18" W. 463.35 feet to a 1/2 inch iron rod with cap stamped "FURMAN RPLS" set for the Northwest corner of this tract of land;
THENCE, N 89° 01' 18" E 310.08 feet to the PLACE OF BEGINNING, and 
containing 3.30 acres, more or less.

Lubbock County, Texas
	
			
	SPS Id. No.

	Common Name
	Deed into Southwestern Public Service Company Recorded at

	

5236

	

Carlilse Parcel 4
	                                                  Lubbock County Clerk’s Document No. 2016044886, Official Public Records, Lubbock County, Texas executed by Pevehouse Development Corporation and dated November 28, 2016, and recorded December 9, 2016

	
			
	SPS Id. No.

	Common Name
	Deeds into Southwestern Public Service Company Recorded at

	

5237

	

Carlilse Parcel 5
	                                                Lubbock County Clerk’s Document No. 2017000715, Official Public Records, Lubbock County, Texas executed by John Thomas Mantooth, Executor of the Estate of Walter B. Mantooth and dated and recorded January 5, 2017

as to the following property:
A 0.97± acre, more or less, tract of land out of the Northeast Quarter of Section 10, Block JS, E.L. & R.R. Co. Survey, Lubbock County, Texas, further being out of that certain tract of land described in that certain instrument recorded in Volume 6359, Page 253 as filed in the Office of the County Clerk of Lubbock County, Texas, said 0.97± acre tract having been surveyed on the ground by Furman Land Surveyors, Inc. and being described by metes and bounds as follows:
(Bearings and Distances arc Grid UTM Coordinate System-Zone 14 North, NAD (1983) using GPS relative positioning techniques based on an OPUS on August 19th, 2014.  Combined Scale Factor = 1.00037952).
BEGINNING at a 1/2 inch iron rod found for the Northwest corner of Lots 482-572, Westchester Park as described in Volume 7743, Page 181 as filed in the Office of the County Clerk of Lubbock County, Texas, also being a point in the West line of said tract of land described in Volume 6359, Page 253, same being a point in the East line of that certain tract of land described in that certain instrument recorded in Volume 1473, Page 314 as filed in the Office of the County Clerk of Lubbock County, Texas, and being the Southwest and BEGINNING CORNER of this tract of land;

Schedule C-6

THENCE, N. 01° 29' 51" E. (Base Line) along the common line of said tract of land described in Volume 6359, Page 253 and said tract of land described in Volume 1473, Page 314 at 276.48 feet pass a 1/2 inch iron rod with cap found for the Southeast corner of that certain 4.715± acre tract of land described in that certain instrument recorded in Volume 1630, Page 824 as filed in the Office of the County Clerk of Lubbock County, Texas, continuing a total distance of 278.84 feet to a point being the Northwest corner of this tract of land, same being the Southwest corner of that certain Easement described in that certain instrument recorded in Volume 1986, Page 656 as filed in the Office of the County Clerk of Lubbock County, Texas;
THENCE, S. 88° 30' 09" E. 128.55 feet along the South line of said Easement described Volume 1986, Page 656 to 1/2 inch iron rod with cap stamped "FURMAN RPLS" set for a jog corner of this tract of land, same being the Southeast corner of said Easement;
THENCE, N. 01° 29' 51" E. 75.03 feet along the East line of said Easement to a 1/2 inch iron rod with cap stamped "FURMAN RPLS" set for a jog corner of this tract of land;
THENCE, S. 88° 30' 09" E. 15.01 feet to a 1/2 inch iron rod with cap stamped "FURMAN RPLS" set for the Northeast corner of this tract of land;
THENCE, S. 01° 29' 51" W. 363.99 feet to a 1/2 inch iron rod with cap stamped "FURMAN RPLS" set in the North line of said Westchester Park, same being the Southeast corner of this tract of land;
THENCE, N. 88° 26' 57" W. 113.56 feet along the North line of said Westchester Park to a 1/2 inch iron rod found;
THENCE, N. 43° 28' 33" W. 14.15 feet along the North line of said Westchester Part to a inch iron rod with cap found; and
THENCE, N. 88° 30' 09" W. 20.00 feet along the North line of said Westchester Park to the POINT OF BEGINNING, and 
containing 0.97 acres, more or less.
	
			
	SPS Id. No.

	Common Name
	Deeds into Southwestern Public Service Company Recorded at

	

5250

	

Quincy Substation
	                                              Lubbock County Clerk’s Document No. 2018001814, Official Public Records, Lubbock County, Texas executed by and dated January 4, 2018 and recorded January 18, 2016

as to the following property:

Schedule C-7

A 15.54 acre, more or less, tract of land out of Section 22, Block AK, H.E. & W.T. Railroad Company Survey, Lubbock County, Texas, further being the same tract of land described in that certain instrument recorded in Clerk’s File Number 2009040401, as filed in the Office of the County Clerk of Lubbock County, Texas, having been surveyed on the ground by Furman Land Surveyors, Inc. and being described by metes and bounds as follows:
(Bearings and Distances are Grid UTM Coordinate System-Zone 13N, NAD (1983) using GPS relative positioning techniques based on an OPUS on December 15, 2017.  Combined Scale Factor = 1.00042106),
BEGINNING at a 1/2 inch iron rod found for the Northeast corner of this tract of land, same being the Northwest corner of a 15.536± acre tract of land described in that certain instrument recorded in Clerk's File Number 2016040172, as filed in the Office of the County Clerk of Lubbock County, Texas, from whence a Mag nail found for the Northeast corner of said Section 22, bears N. 88° 17' 09" E. 1872.79 feet and N. 01° 42' 51" W. 1241.00 feet;
THENCE, S. 01° 41' 20" E. 872.38 feet along the common line of said. 15.54± acre tract of land and said 15.536± acre tract of land to a 1/2 inch iron rod found for the Southeast corner of this tract of land and the common corner of said 15.536± acre tract of land, a 3.862± acre tract of land described in that certain instrument recorded in Clerk's File Number 2017002460, as filed in the Office of the County Clerk of Lubbock County, Texas and a 15.53± acre tract of land described in that certain instrument recorded in Volume 5062, Page 17, as filed in the Office of the County Clerk of Lubbock County, Texas;
THENCE, S. 88° 17'  09" W. 776.33 feet along the common line of said 15.54± acre tract of land and said 15.53± acre tract of land to a 1/2 inch iron rod found for the Southwest corner of this tract of land and the Northwest corner of said 15.53± acre tract of land and in the West line of an 83.4679± acre tract of land described in that certain instrument recorded in Clerk's File Number 2013018377, as filed in the Office of the County Clerk of Lubbock County, Texas;
THENCE, N. 01° 41' 20" W. 872.38 feet along the common line of said 15.54± acre tract of land and said 83.4679± acre tract of land to a 1⁄2 inch iron rod with cap "1676" found for the Northwest corner of this tract of land and the Southwest corner of a 5.289± acre tract of land described in that certain instrument recorded in Clerk's File Number 2011002743, as filed in the Office of the County Clerk of Lubbock County, Texas;
THENCE, N. 88° 17' 09" E. (Base Line) 776.33 feet along the common line of said 15.54± acre tract of land and said 5.289± acre tract of land and a tract of land described in that certain instrument recorded in Clerk's File Number 2012049789, as filed in the Office of the County Clerk of Lubbock County, Texas to the PLACE OF BEGINNING, and 

Schedule C-8

containing 15.54 acres, more or less.
Moore County, Texas
	
			
	SPS Id. No.

	Common Name
	Deeds into Southwestern Public Service Company Recorded at

	

5235
	

Dumas North Parcel 2

	

Moore County Clerk’s Document No. 193240, and in Book 787, Page 286 et seq., Official Public Records, Moore County, Texas executed by Luciano Gutierrez and wife, Rosalina Gutierrez and dated February 10, 2017 and recorded February 13, 2017

as to the following property:
Lot Thirteen (13), Block Two (2), Evans Addition to the City of Dumas, Moore County, Texas. 
Randall County, Texas
	
			
	SPS Id. No.

	Common Name
	Deed into Southwestern Public Service Company Recorded at

	

5243
	

Hillside Parcel 2

	

Tract 1:  Randall County Clerk’s Document No. 2017013051, Official Public Records, Randall County, Texas executed by Hillside Terrace Real Estate, LLC and dated July 12, 2017 and recorded July 26, 2017

as to the following property:
A 6,192 square foot, more or less, tract of land out of Section 64, Block 9, B.S. & F. Survey, Randall County, Texas, further being out of that certain tract of land described in that certain instrument recorded under Clerk's File No. 00610085 of the Official Public Records of Randall County, Texas, described as follows:
COMMENCING at the Northeast corner of said Section 64;
THENCE, N. 89°43' 53" W. 2832.83 feet along the North line of said Section 64 to a point;
THENCE, S. 00°16' 09" E. at 70.00 feet pass the Northeast corner of Lot 178, Block 5, Hillside Terrace Estates Unit No. 15, an addition to the City of Amarillo, Randall County, Texas according to the map or plat thereof recorded under Clerk's File No. 2011015246 of the Official Public Records of Randall County, Texas, same being the Northwest corner of Lot 1, Block 1, Paramount Terrace Christian Church Addition Unit No. 1, an addition to the City of Amarillo, Randall County, Texas according to the map or plat thereof recorded under Clerk's File No. 2005010498 of the Official 

Schedule C-9

Public Records of Randall County, Texas, from whence a 1/2 inch iron rod with cap found at the Northeast corner of said Paramount Terrace Christian Church Addition Unit No. 1 bears S. 89° 43' 53" E., (Base line) 2732.95 feet and a 1/2 inch iron rod with cap found at the Northwest corner of said Hillside Terrace Estates Unit No. 15 bears N. 89° 43' 53" W. 200.00 feet, continuing along the common line of said Lot 178 and said Lot 1, a total distance of 287.80 feet to a 1/2 inch iron rod found at the Southeast corner of said Lot 178, same being the Northeast and BEGINNING CORNER of this tract of land;
THENCE, S. 00°16' 09" E. 32.05 feet along the East line of said Lot 1 to a 1/2 inch iron rod with cap found at the Southeast corner of this tract of land;
THENCE, N. 89° 42' 57" W. 179.60 feet to a 1/2 inch iron rod with cap stamped "FURMAN RPLS" set for the most Southerly Southwest corner of this tract of land;
THENCE, N. 45° 02' 20" W. 28.44 feet to a 1/2 inch iron rod with cap stamped "FURMAN RPLS" set in the East line of Hillside Terrace Estates Unit No. 10, an addition to the City of Amarillo, Randall County, Texas according to the map or plat thereof recorded under Clerk's File No. 2011007586 of the Official Public Records of Randall County, Texas, for the most Westerly Southwest corner of this tract of land;
THENCE, N. 00° 21' 42" W. 12.00 feet along said East line to a 3/8 inch iron rod found at the Southwest corner of said Lot 178, same being the Northwest corner of this tract of land;
THENCE, S. 89° 43' 51" E. 199.65 feet along the South line of said Lot 178 to the PLACE OF BEGINNING, and 
containing 6,192 square feet, more or less.
	
			
	

5251
	

Outpost Sub Parcel 2

	

Randall County Clerk’s Document No. 2018018739, Official Public Records, Randall County, Texas executed by Mary Ann Lane Holton dated August 31, 2018, and recorded October 23, 2018 

as to the following property:
A 2.49 acre, more or less, tract of land out of the Southeast Quarter of Section 176, Block 9, B.S. & F. RR. Co. Survey, Randall County, Texas, further being out of that certain tract of land described in that certain instrument recorded in Clerk's File No. 2005009719 of the Official Public Records of Randall County, Texas, said property having been surveyed on the ground by Furman Land Surveyors, Inc. and being described by metes and bounds as follows:

Schedule C-10

(Bearings and Distances are Grid UTM Coordinate System-Zone 14 North, NAD (1983) using GPS relative positioning techniques based on an OPUS on July 29, 2016. Combined Scale Factor =1.00038038).
COMMENCING at a 1/2 inch iron rod with aluminum cap found for the Southeast corner of said Section 176, same being the common corner of Sections 175, 176, 165 & 166, Block 9, from whence a 1/2 inch iron rod with aluminum cap found for the Northeast corner of said Section 176 bears N. 01° 53' 20" E. (Base Line) 5404.95 feet;
THENCE, N. 88° 14' 01" W. 50.02 feet along the common line of said Sections 175 and 176 to a 1/2 inch iron rod with cap stamped "FURMAN RPLS" set in the West Right-of-Way line of Bushland Road described in that certain instrument recorded in Volume 258, Page 9 as filed in the Official Public Records of Randall County, Texas, same being the Southeast and BEGINNING CORNER of this tract of land;
THENCE, N. 88° 14' 01" W. 230.09 feet along the common line of said Sections 175 and 176 to a 1/2 inch iron rod with cap found for the Southeast corner of that certain 5.10 +/- acre tract of land described in that certain instrument recorded. in Clerk's File No. 2016023092, same being the Southwest corner of this tract of land;
THENCE, N. 01° 53' 20" E. 471.51 feet along the East line of said 5.10 +/- acre tract of land to a 1/2 inch iron rod with cap found for the Northeast corner of said 5.10 +/- acre tract of land, same being the Northwest corner of this tract of land;
THENCE, S. 88° 14' 01" E. 230.09 feet to a 1/2 inch iron rod with cap stamped "FURMAN RPLS" set in the West Right-of-Way line of Bushland Road, same being the Northeast corner of this tract of land; and
THENCE, S. 01° 53' 20" W. 471.51 feet along the said West Right-of-Way line of Bushland Road to the POINT OF BEGINNING, and 
containing 2.49 acres, more or less.
	
			
	SPS Id. No.

	Common Name
	Deed into Southwestern Public Service Company Recorded at

	

5246
	

Arnot Substation

	

Randall County Clerk’s Document No. 2018001474, Official Public Records, Randall County, Texas executed by Richard K. Archer, Jr., and Natalie D. Archer and dated January 26, 2018 and recorded January 26, 2018

as to the following property:
A 6.00± acre tract of land out of Section 108, Block 9, B.S. & F. Survey, Randall County, Texas, further being out of a tract of land being described in that certain instrument recorded in Clerk's File Number 2008016832, as filed in the Office of the County Clerk of Randall 

Schedule C-11

County, Texas, having been surveyed on the ground by Furman Land Surveyors, Inc. and being described by metes and bounds as follows:
(Bearings and Distances are Grid UTM Coordinate System-Zone 14N, NAD (1983) using GPS relative positioning techniques based on an OPUS on August 1, 2016.  Combined Scale Factor = 1.00038038).
COMMENCING at a 3/8 inch iron rod with cap "2507" found for the Southwest corner of said Section 108, same being the common corner for Sections 107, 108, 131 and 132, Block 9, B.S. & F. Survey, Randall County, Texas, from whence a 1/2 inch iron rod found for the Southeast corner of Section 97, Block 9, B.S. & F. Survey, Randall County, Texas, bears S. 88° 05' 43" E. (Base Line) 10789.86 feet;
THENCE, S. 88° 05' 43" E. 1320.00 feet along the South line of said Section 108 to a point; 
THENCE N. 01° 54' 17" E. 60.00 feet to a 1/2 inch iron rod with cap stamped "FURMAN RPLS" set for the Southwest and BEGINNING CORNER of this tract of land in the North line of an existing easement described in that certain instrument recorded in Volume 480, Page 404, as filed in the Office of the County Clerk of Randall County, Texas, same being the Southeast corner of a 0.59± acre access easement surveyed simultaneously;
THENCE, N. 01° 54' 17" E. 511.20 feet to a 1/2 inch iron rod with cap stamped "FURMAN RPLS" set for the Northwest corner of this tract of land;
THENCE, S. 88° 05' 43" E. 511.20 feet to a 1/2 inch iron rod with cap stamped "FURMAN RPLS" set for the Northeast corner of this tract of land;
THENCE, S. 01° 54' 17" W. 511.20 feet to a 1/2 inch iron rod with cap stamped "FURMAN RPLS" set in the North line of said existing easement for the Southeast corner of this tract of land; 
THENCE, N. 88° 05' 43" W. 511.20 feet along said North line to the PLACE OF BEGINNING; and 
    

containing 6.0 acres, more or less.

Schedule C-12

	
			
	SPS Id. No.

	Common Name
	Deed into Southwestern Public Service Company Recorded at

	

5249
	

Western Street Substation

	

Randall County Clerk’s Document No. 2018014146, Official Public Records, Randall County, Texas executed by Laurie Industries, Inc. and dated August 10, 2018 and recorded August 10, 2018

as to the following property:
South 323.5 feet of Lot 2, Replat of Block 72, Ridgecrest Unit No. 14, an addition to the City of Amarillo in Randall County, Texas, according to the map or plat thereof, recorded in Volume 363, Page 250 of the Deed Records of Randall County, Texas.

	
			
	SPS Id. No.

	Common Name
	Deed into Southwestern Public Service Company Recorded at

	

5254
	                                             Preston West Substation
 
	

Randall County Clerk’s Document No. 2018016742, Official Public Records, Randall County, Texas executed by Held Golf, Ltd. and dated September 20, 2018 and recorded September 21, 2018

as to the following property:
A 6.267 acre, more or less, tract of land out of Section 32, Block 9, R.S. & F. Survey, Randall County, Texas, further being that tract of land described in that certain instrument recorded in Document No. 2005-013228, as filed in the Office of the County Clerk of Randall County, Texas, said tract of land having been surveyed on the ground by Furman Land Surveyors, Inc. and being described by metes and bounds as follows:
(Bearings and Distances arc Grid UTM Coordinate System-Zone 14N, NAD (1983) using GPS relative positioning techniques based on an OPUS solution from September 12, 2018.  Combined Scale Factor = 1.00030131)
COMMENCING at 1/2 inch iron rod found and accepted for the Southwest corner of said Section 32, same being the common corner of Sections 32, 33, 36 and 37 Block 9, B.S. & F. Survey, Randall County, from whence a railroad spike found for the Northwest corner of said Section 32 bears N. 01° 17' 36" E. (Base Line) 5420.25 feet;
THENCE, N. 02° 18' 34" E. 2776.95 feet, to a 1/2 inch iron with cap stamped "Keys RPLS 2507" found for the Southwest BEGINNING CORNER of this tract of land, same being the Northwest corner of Preston West Acres Unit No. 1, being described in that certain instrument recorded in Volume 1706 Page 198, as filed in the Office of the County Clerk of Randall County, Texas, same being the East right-of-way line 

Schedule C-13

of Coulter Street as described in that certain instrument recorded in Volume 1169 Page 168, as filed in the Office of the County Clerk of Randall County, Texas;
THENCE, N. 01° 14' 57" E. 280.08 feet along said East right-of-way line, to an "X" in concrete found for the Northwest corner of this tract of land, same being the Southwest corner of a ±4.736 acre tract of land, as described in that certain instrument recorded in Document No. 04-4116, as filed in the Office of the County Clerk of Randall County, Texas;
THENCE, S. 88° 03' 24" E. 975.29 feet along the South line of said ±4.736 acre tract of land to a 1/2 inch iron rod with demo cap found for the Northeast corner of this tract of land, seine being the Southeast corner of said ±4.736 acre tract of land;
THENCE, S. 01° 14' 57" W., 280.08 to a 1/2 inch iron rod with demo cap found for the Southeast corner of this tract of land, same being the Northeast corner of said Preston West Acres Unit No. 1; and
THENCE, N. 88° 03' 24" W., 975.29 feet along the North line of said Preston West Acres Unit No. 1, to the POINT OF BEGINNING, and
containing 6.267 acres, more or less;
Yoakum County, Texas
	
			
	SPS Id. No.

	Common Name
	Deed into Southwestern Public Service Company Recorded at

	

5244
	

Ink Basin Substation

	

Yoakum County Clerk’s Document No. 2017-3841, Official Public Records, Yoakum County, Texas executed by Ray Edward Marion and wife, Starla Kim Marion and dated October 11, 2017 and recorded October 25, 2017

as to the following property:
A 33.18 acre, more or less, tract of land out of the East Half of Section 836, Block D, John H. Gibson Survey, Yoakum County, Texas, further being out of that certain 214 acre tract of land described in that certain instrument recorded in Volume 113, Page 740 as filed in the Office of the County Clerk of Yoakum County, Texas, said 33.18 acre tract of land having been surveyed on the ground by Furman Land Surveyors, Inc. and being described by metes and bounds as follows:

Schedule C-14

(Bearings and Distances are Grid UTM Coordinate System-Zone 13N, NAD (1983) using GPS relative positioning techniques based on an OPUS on March 23, 2016. Combined Scale Factor=0.99985953).
BEGINNING at a 1/2 inch iron rod found for the Southeast corner of said Section 836, same being the common corner of Section 835, 836, 857 and 858, Block D, same being the Southeast and BEGINNING CORNER of this tract of land, from whence a 1/2 inch rod found for the Southwest corner of said Section 836 bears S. 8° 54' 03" W. (Base Line) 5284.44 feet;
THENCE, S. 88° 54' 03" W. 1683.46 feet along the common line of said Section 836 and 857 to a point being the Southwest Corner of this tract of land;
THENCE, N. 01° 04' 40"  W. at 40.00 feet pass a 1/2 inch iron rod with cap stamped "FURMAN RPLS" set in the apparent North Right-of-Way line of County Road 350, continuing a total distance of 1075.00 feet to a 1/2 inch iron rod with cap stamped "FURMAN RPLS" set for the Northwest corner of this tract of land;
THENCE, N. 88° 54' 03" E. 944.03 feet to a 1/2 inch iron rod with cap stamped "FURMAN RPLS" set for the most Northerly Northeast corner of this tract of land;
THENCE, S. 01° 04' 40" E. 493.30 feet to a 1/2 inch iron rod with cap stamped " FURMAN RPLS" set for an interior jog corner of this tract of land;
THENCE, N. 88° 54' 03" E. 739.43 feet to a 1/2 inch iron rod with cap stamped "FURMAN RPLS" set in the common line of Sections 835 and 836, same being the most Southerly Northeast corner of this tract of land;
THENCE, S. 01° 04' 40" E. along the common line of said Sections 835 and 836 at 541.70 feet pass a 1/2 inch iron rod with cap stamped "FURMAN RPLS" set in the apparent North Right-of-Way line of County Road 350, continuing a total distance of 581.70 feet to the POINT OF BEGINNING; and 
containing 33.18 acres, more or less.
	
			
	SPS Id. No.

	Common Name
	Deed into Southwestern Public Service Company Recorded at

	

5247
	

Mahoney Substation

	

Yoakum County Clerk’s Document No. 20181642, Official Public Records, Yoakum County, Texas executed by XTO Holdings, LLC and dated January 15, 2018 

as to the following property:
A 4.001 acre tract of land out of Section 742, Block D, John H. Gibson Survey, Yoakum County, Texas, further being out of a tract of land being described in that certain instrument 

Schedule C-15

recorded in Volume 260, Page 761, as filed in the Office of the County Clerk of Yoakum. County, Texas, having been surveyed on the ground by Furman Land Surveyors, Inc. and being described by metes and bounds as follows:
(Bearings and Distances are Grid UTM Coordinate System-Zone 13N, NAD (1983) using GPS relative positioning techniques based on an OPUS on March 30, 2016.  Combined Scale Factor = 0.99997573).
COMMENCING at a 5/8 inch iron rod found for the Southeast corner of said Section 742, from whence a mag nail found for the Northeast corner said Section 742, bears N. 01° 06' 28" W. (Base Line) 5276.02 feet;
THENCE, N. 06° 30' 03" W. 516.60 feet to a 1/2 inch iron rod with cap stamped "FURMAN RPLS" set for the Southeast and BEGINNING CORNER of this tract of land in the apparent West Right-of-Way line of County Road 365;
THENCE, S. 88° 53' 32" W. 358.00 feet to a1/2 inch iron rod with cap stamped "FURMAN RPLS" set for the Southwest corner of this tract of land;
THENCE, N. 01° 06' 28" W. 487.00 feet to a 1/2 inch iron rod with cap stamped "FURMAN RPLS" set for the Northwest corner of this tract of land;
THENCE, N. 88° 53' 32" E. 358.00 to a1/2  inch iron rod with cap stamped "FURMAN RPLS" set for the Northeast corner of this tract of land in the apparent West Right-of-Way line of County Road 365;
THENCE, S. 01° 06' 28" E. 487.00 feet along said apparent Right-of-Way line to the PLACE OF BEGINNING, and
containing 4.00 acres, more or less.

Schedule C-16

THE FOLLOWING PROPERTIES ARE IN THE STATE OF NEW MEXICO

The following described real estate in Eddy County, New Mexico:

County Club Parcel 2

SPS Id No: 5248
SURFACE ESTATE ONLY:
A 4.85 acre tract of land out of Section 13, Township 17 South, Range 25 East, of the New Mexico Principal Meridian, Eddy County, New Mexico, further being out of a tract of land described in those certain instruments recorded in; Book 1103 Page 382, Book 856 Page 777, Book 1087 Page 538, and Book 875 Page 981 as filed in the Office of the County Clerk of Eddy County, New Mexico said tract of land having been surveyed on the ground by Furman Land Surveyors, Inc. and being described by metes and bounds as follows:
(Bearings and Distances are Grid UTM Coordinate System-Zone 13N, NAD (1983) using GPS relative positioning techniques based on an OPUS on October 14, 2015.
Combined Scale Factor=0.99978304)
BEGINNING at a point on the East line of said Section 13, for the Southeast corner of this tract of land, from whence the Southeast corner of said Section 13, bears S.00°11'53"E. 1324.78 feet;
THENCE S.89°53'30"W. (Base Line) at 30.00 feet pass a 1/2 inch iron rod found for the Northeast corner of that certain tract of land described in that certain instrument recorded in Book 1056 Page 430 as filed in the Office of the County Clerk of Eddy County, New Mexico continuing a total distance of 376.04 feet along the North line of said tract of land described in Book 1056 Page 430, to 1/2" iron rod with cap found for the Northwest corner of said tract of land described in Book 1056 Page 430 and the Southwest corner of this tract of land, also being in the East line of the Eagle-Tumbleweed Watershed as described in Book 104 Page 922 as filed in the Office of the County Clerk of Eddy County, New Mexico;
THENCE N.00°11'07"W. 521.91 feet along said Eagle-Tumbleweed Watershed easement to a 1/2 inch iron rod with cap stamped "PS 15701" set for the Northwest corner of this tract of land;
THENCE N.77°50'49"E. at 353.58 feet pass a 1/2 inch iron rod with cap stamped "PS 15701" set in the West right-of-way line of 26th Street, continuing a total distance of 384.25 feet to a point on the East line of said Section 13, from whence a railroad spike found for the Northeast corner of the Southeast quarter of said Section 13 bears N.00°11'53"W. 722.40 feet;
THENCE S.00°11'53"E. 602.09 feet along the East line of said Section 13, to the PLACE OF BEGINNING.

Schedule C-17

ALSO KNOWN AS: TRACT A of that certain SOUTHWESTERN PUBLIC SERVICE PLAT OF SURVEY LAND DIVISION, out of the NE/4 of the SE/4 of Section 13, Township 17 South, Range 25 East, N.M.P.M., Eddy County, New Mexico, as the same appears on the official, filed plat thereof on file in Cabinet 7, Slide 89, in the Office of the County Clerk of Eddy County, New Mexico.

Schedule C-18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00288-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00288-of-00352.parquet"}]]