Document:

lxu-ex101_952.htm

 

 

SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT OF THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY SUBMITTED TO THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH THREE ASTERISKS (***).

 

Exhibit 10.1

UREA AMMONIUM NITRATE 

Purchase AND SALE AGREEMENT

 

		
	
1.Effective Date
	
June 1, 2016

	
2.Buyer
	
Coffeyville Resources Nitrogen Fertilizers, LLC ("Buyer")

	
3.Seller
	
Pryor Chemical Company (“Seller”)

	
4.Term and Termination
	
The term shall commence on the Effective Date and shall terminate on May 31, 2019, unless otherwise terminated earlier in accordance with this Agreement (“Term”).  The Term shall automatically extend for additional periods of one year each unless either party provides notice of non-extension at least 12 months prior to the end of the Term or any extended Term, as applicable, unless otherwise terminated as provided herein.

Buyer may unilaterally terminate this Agreement at any time and for any reason, without liability therefor, upon 180 days advance written notice of termination to Seller, provided that each party’s rights and obligations pertaining to Product committed to prior to such advance notice shall survive termination. Seller may unilaterally terminate this Agreement at any time and for any reason, without liability therefor, upon 90 days advance written notice of termination to Buyer, provided that each party’s rights and obligations pertaining to Product committed to prior to such advance notice shall survive termination.

Either party may terminate this Agreement (a) upon a material breach of this Agreement by the other party which, if capable of being cured, is not cured within 30 days of notice of such material breach, or (b) if the other party becomes insolvent or is generally unable to pay, or fails to pay, its debts as they become due, files or has filed against it a petition for bankruptcy, seeks reorganization or other relief with respect to its debts, makes a general assignment for the benefit of its creditors, or applies for or has appointed a receiver, trustee, custodian, or similar agent.

	
5.Product
	
Urea ammonium nitrate (“UAN” or "Product").  The specifications for the Product are contained in Appendix I (“Specifications”).  Seller warrants title to the Products and warrants that the Products shall conform to the Specifications.  Except for the foregoing, Seller makes no representation or warranty of any kind, express or implied, including, without limitation, any warranty of merchantability, fitness for any particular purpose, or any other matters with respect to the Products, whether the Products are used alone or in combination with any other material.

	
6.Price
	
The price for Product is set forth in Appendix II.  An example of the price calculation is included in Appendix II.

1

 

 

SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT OF THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY SUBMITTED TO THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH THREE ASTERISKS (***).

 

		
	
7.Sales Rebate Incentives
	
Some of *** may qualify for sales rebate incentives.  *** will provide *** with details on the accrued balances of such sales rebate incentives within *** days after the end of each month.  If *** sales rebate incentives *** with respect to Products purchased under this Agreement, *** shall *** for all such sales rebate incentives *** no later than *** days following *** reporting to *** of the payment of such 

sales rebate incentives.

	
8.Available Tons
	
Seller shall advise Buyer each month as to how many Tons of Product it expects to make available to Buyer for purchase in future months (“Expected Available Tons”).  Expected Available Tons shall not be a commitment by Seller, but only a good faith forecast.

	
9.Quantity, Exclusivity, Seller’s Rights
	
Buyer shall have the exclusive right (but not the obligation) to purchase all UAN produced at Seller’s Facility up to the number of Expected Available Tons except a) Seller’s or Seller’s Affiliate’s requirements, which shall be no more than 30,000 Tons per year and no more than 10,000 Tons in any calendar quarter (“Carve-Out Product”), and b) UAN that constitutes “Unpurchased Product” (as defined below).  Seller will provide notice to Buyer of Seller’s intent to ship Carve-Out Product no later than *** days prior to the beginning of each calendar quarter.  For all other requests from Seller, the parties shall use commercially reasonable efforts to satisfy Seller’s requirements. Buyer shall market the Product produced by Seller with the same effort and priority as similarly situated Product produced by Buyer.

If (i) Buyer fails to take delivery of Product produced at Seller’s Facility, and (ii) Buyer’s failure described in (i) above causes the (a) Product storage capacity at Seller’s Facility of *** Tons to be more than 75% utilized, or (b) the unit at Seller’s Facility at which Product is produced to be slowed down, shut-down or idled (“Unpurchased Product”), Seller may immediately sell such Unpurchased Product without restriction as Seller’s exclusive remedy.

	
10.Reporting and Payment
	
Buyer shall submit Product orders to Seller, and Seller shall process such orders and submit invoices to Buyer, all in accordance with the pricing outlined in Section 6. Within *** from the invoice date, Buyer will make payment to Seller by means of Automated Clearing House (ACH) into a U.S. bank account designated by Seller and payable in U.S. dollars.

The parties acknowledge that minor variances may occur in the billing process, such as differences in the actual and expected freight rates due to fuel surcharges.  As such, a quarterly reconciliation process will be conducted where either party may propose adjustments to the prior month’s billings.   The parties shall use commercially reasonable efforts to resolve the billing differences in a timely manner, but in no case later than three weeks following the end of each calendar quarter.

	
11.Buyers Position Report
	
Buyer will report weekly to Seller the volume of Product on the books for future delivery, and an estimated timeframe for delivery of said Product.

Buyer shall maintain adequate books and records to document all sales of Seller’s Product to third parties (“Third-Party Sales”).  At Seller’s request, but not more frequently than one request in any 12 month period, Seller shall have the rights to audit Buyer’s books and records pertaining to the Third-Party Sales.  The Seller’s right to audit is conditioned upon reasonable prior written notice and shall be conducted at reasonable times.

	
12.Seller’s Facility 
	
Seller’s chemical plant facility located at Pryor, Oklahoma (“Seller’s Facility”).  

2

 

 

SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT OF THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY SUBMITTED TO THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH THREE ASTERISKS (***).

 

		
	
13.Delivery Terms/Shipping Mode 
	
All Product shall be delivered to Buyer on an FCA Free Carrier (INCOTERMS 2010) Seller’s Facility basis.  Product may be delivered to railcars or trucks arranged by Buyer.  Timely delivery of Product is of importance to the parties.

	
14.Seller Turnaround
	
Seller shall use commercially reasonable efforts to provide Buyer with at least 120 days prior notice of the commencement of any turnaround at Seller’s Facility, describing the expected commencement date, scope, and length of such turnaround.  

	
15.Make-Whole
	
Seller must timely deliver all Product ordered by Buyer.  Seller’s obligation to make timely delivery of Product ordered by Buyer is absolute and shall not be affected by force majeure, other than a tornado, earthquake, hurricane, or terrorist attack that destroys or otherwise incapacitates Seller’s Facility (in such limited cases, a “Force Majeure Event”).  Seller shall notify Buyer as far in advance as practical if Seller anticipates any inability to make timely delivery of Product ordered by Buyer from Product produced at Seller’s Facility (a “Product Shortfall”).  In the event of a Product Shortfall for any reason (other than a Force Majeure Event), Seller shall procure Product from other sources to meet Buyer’s order schedule at no additional cost to Buyer.  Buyer will work cooperatively with Seller to help minimize the cost incurred by Seller to procure substitute Product to cover Product delivery commitments of Seller. Without limiting the foregoing obligations of Seller, except in the case of a Force Majeure Event, if Buyer reasonably determines that Seller will not timely deliver Product (whether produced at Seller’s Facility or obtained by Seller on the market) ordered by Buyer, Buyer may procure Product from other sources, and in such cases Seller shall pay Buyer the difference between the price for Product ordered from Seller and the price Buyer pays to procure Product from another source, plus any additional costs incurred by Buyer in procuring such Product from another source. 

Each party stipulates that the payment obligation in this Section 15 is reasonable in light of the anticipated harm and the difficulty of estimation or calculation of actual damages and hereby waives the right to contest such payment as an unreasonable penalty or otherwise.  

Notwithstanding anything seemingly to the contrary in this Agreement, Seller’s obligation to deliver Product to Buyer is limited to Product orders placed by Buyer.

	
16.Railcars
	
Seller will provide railcars to Buyer (the “Railcars”) to facilitate deliveries of Product to Buyer and its customers, under a Railcar Agreement.  

	
17.Access to Seller’s Facility 
	
All drivers for motor carriers loading Product at the Seller’s Facility will be required to follow Seller’s plant safety rules. 

	
18.Indemnification
	
Seller shall indemnify, defend, and hold harmless Buyer, its direct and indirect parent, affiliate, and subsidiary entities, and each of their respective officers, directors, employees, and agents (each an “Indemnified Party”) against any and all losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, awards, penalties, fines, costs or expenses of any kind, including reasonable attorneys’ fees (collectively, “Losses”), incurred by an Indemnified Party relating to any claim of a third party arising out of or in connection with the Products purchased from Seller or from Seller’s negligence, willful misconduct, or breach of this Agreement.  Seller’s parent shall execute this Agreement for the sole purpose of guaranteeing Seller’s obligations under this Section.

3

 

 

SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT OF THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY SUBMITTED TO THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH THREE ASTERISKS (***).

 

		
	
19.Insurance 
	
Seller agrees to maintain during the term of this Agreement Commercial General Liability insurance with a minimum limit of $5,000,000 per occurrence.  This insurance will include vendor endorsement naming Buyer as Additional Named Insured using ISO form #CG 20-15-11-88, or equivalent.  Seller agrees to waive their insurers’ right of subrogation against Buyer, for any insurance maintained by Seller which meets any indemnification requirements of Seller in this Agreement.  Seller will provide Buyer with a Certificate of Insurance evidencing this insurance is continuously maintained.  The amount of insurance required is not intended to limit or cap indemnity obligations of Seller under this Agreement.

	
20.Buyer’s General Terms and Conditions
	
The General Terms and Conditions for Sales of Fertilizer Products (“General Terms and Conditions”) attached as Appendix III control the terms and conditions of sale and purchase of Product from Seller to Buyer unless otherwise expressly set forth set forth in the Agreement.  Without limiting the foregoing, for the avoidance of doubt, Section 15 (Make-Whole), Section 16 (Railcars), Section 18 (Indemnification), and Section 19 (Insurance) of this Agreement shall not be limited by the General Terms and Conditions.  All Attachments are incorporated in this Agreement by reference.

	
21.Confidentiality
	
This Agreement, and the information exchanged between the parties in connection with this Agreement (“Confidential Information”), is confidential.  Neither party shall disclose the existence of this Agreement or any Confidential Information without the prior written consent of the other party, except to the extent required by law.  Confidential Information shall not be used for any purpose other than furthering each party’s respective obligations under this Agreement.  Confidential Information shall not include information to the extent such information (a) is or becomes generally available to the public, (b) is or becomes generally available to one party on a non-confidential basis from a source other than the other party, provided that the source is not known by the receiving party to be bound by a confidentiality agreement, or (c) was previously known by a party or is or was independently developed by such party.

	
22.Counterparts
	
This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy and all of which, when taken together, will be deemed to constitute one and the same agreement or document, and will be effective when counterparts have been signed by each of the parties and delivered to the other parties. A manual signature on the signature page to this Agreement, an image of which shall have been transmitted electronically, will constitute an original signature for all purposes. The delivery of copies of the signature page to this Agreement or any other document to be delivered pursuant to this Agreement, including executed signature pages where required, by electronic transmission will constitute effective delivery for all purposes.

	
22.
	

 

 

[Signatures on following page]

 

4

 

 

 

SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT OF THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY SUBMITTED TO THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH THREE ASTERISKS (***).

 

 

BUYER:

 

	

	
COFFEYVILLE RESOURCES NITROGEN FERTILIZERS, LLC
	
 

 

 

By: /s/ Mark A. Pytosh

Name:Mark A. Pytosh

Title:Chief Executive Officer and President

 

 

	

	
SELLER:
	
 

 

	

	
PRYOR CHEMICAL COMPANY
	
 

 

 

By: /s/ Brian Lewis

Name: Brian Lewis

Title:   General Manager and Vice President

 

 

PARENT (FOR THE SOLE PURPOSE OF GUARANTEEING SELLER’S OBLIGATIONS UNDER SECTION 18 OF THE AGREEMENT):

 

	

	
LSB INDUSTRIES, INC.
	
 

 

 

By: /s/ Daniel D. Greenwell

Name: Dan Greenwell

Title:   Chief Executive Officer and President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

 

 

 

 

SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT OF THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY SUBMITTED TO THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH THREE ASTERISKS (***).

 

Appendix I
Product Specifications

 

 

					
	
UAN
	
 
	
Typical
	
Min
	
Max

	
% Nitrogen
	
 
	
32.00%
	
31.80%
	
32.50%

	
Appearance
	
 
	
Clear
	
Clear
	
Clear

	
Color
	
 
	
colorless
	
colorless
	
colorless

	
Free Ammonia
	
 
	
500 ppm
	
200 ppm
	
700 ppm

	
Specific Gravity @ 60 deg F
	
 
	
1.32
	
1.30
	
1.34

	
Gauge Pressure @ 140 deg F
	
PSIG
	
 
	
 
	
 

	
Approx. Salt Out Temp (deg F)
	
Deg F
	
32 F
	
32 F
	
32 F

	
Approx. Salt Out Temp (deg C)
	
Deg C
	
 0 C
	
 0  C
	
 0 C

	
PH UAN Day Tank (to maintain 0.1% Free NH3)
	
 
	
7
	
6.8
	
7.2

	
AN/UREA Ratio @ Origin
	
 
	
1.33
	
1.1
	
1.35

	
 
	
 
	
 
	
 
	
 

	
Corrosion Inhibitor
	
 
	
PO4 Based
	
PO4 Based
	
PO4 Based

	
Inhibitor rate 
	
ppm
	
100 ppm
	
80 ppm
	
120 ppm

	
 
	
 
	
 
	
 
	
 

	
% Nitrogen
	
 
	
28.00%
	
27.80%
	
28.50%

	
Approx. Salt Out Temp (deg F)
	
Deg F
	
 0 F
	
 0 F
	
 0 F

	
Approx. Salt Out Temp (deg C)
	
Deg C
	
 - 18 C
	
 - 18 C
	
 - 18 C

 

 

 

 

 

 

1

 

 

 

 

SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT OF THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY SUBMITTED TO THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH THREE ASTERISKS (***).

 

Appendix II
Product Pricing 

 

Net Sales Price:

Buyer will prepare and email to Seller an order acknowledgment for all Product orders that are to be sold from Seller’s Facility.  The order acknowledgement will include the quantity to be sold and the Net Sales Price, with the Net Sales Price being equal to the following: 

 

Net Sales Price (expressed in US$ per short ton) = Ptp – Freight– Commission 

 

Where: 

	
 
	

	
 

	
 
	

	
Ptp = Actual price per short ton sold by Buyer for Product shipped from Seller’s Facility.

 

	
 
	

	
Freight = Actual freight rate per ton to be incurred by Buyer (including fuel surcharges and excluding demurrage) to deliver Product from Seller’s Facility to a third-party pursuant to a third-party sale.  ***.    

 

	
 
	

	
Commission = ***

 

 

II-1

 

 

SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT OF THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY SUBMITTED TO THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH THREE ASTERISKS (***).

 

Appendix III

Additional Terms and Conditions 

 

1. Product Measurement. Products shall be measured by calibrated meters or scales. Product weights shall be measured in short tons (2,000 pounds). Product volumes shall be rounded to the nearest three decimal places. Upon request and within reason, each Party shall have the right to have a representative witness tests of applicable meters and scales and measurements of Products. Measurements shall be deemed to be correct absent manifest error.

 

2. Limited Representations and Warranties. Seller represents and warrants to Buyer that the Products will conform to the specifications for the Product and that Product is delivered free from lawful security interests, liens, and encumbrances (collectively, the “Limited Representations and Warranties”).  THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THE DESCRIPTION ON THE FACE HEREOF. SELLER MAKES NO OTHER REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY WARRANTY OF MERCHANTABILITY OR FITNESS OF THE PRODUCTS FOR A PARTICULAR PURPOSE (EVEN IF SUCH PURPOSE IS KNOWN TO SELLER), OR ANY WARRANTY AGAINST INFRINGEMENT (INCLUDING INFRINGEMENT OF PATENT AND TRADEMARK RIGHTS). ANY IMPLIED WARRANTIES ARE EXPRESSLY DISCLAIMED AND EXCLUDED.

 

3. Taxes. All prices for Products shall be exclusive of all sales, use, and excise taxes, and any other similar taxes, duties, assessments, and charges of any kind imposed by any governmental authority (collectively, “Taxes”), and Buyer shall be responsible for and pay all such Taxes, provided that Buyer shall not be responsible for any Taxes imposed on Seller with respect to Seller’s income, personnel, or real or personal property.

 

4. Force Majeure. Except with respect to payment for delivered Products, neither Party shall be liable or responsible for any failure or delay in performing its obligations, or any loss or damage resulting therefrom, when and to the extent such failure or delay is caused by or results from acts or circumstances beyond its reasonable control, acts of God, the elements, floods, fires, explosions, storms, earthquakes, power outages, wars, invasions or hostilities (whether war is declared or not), terrorist threats or acts, military operations, national emergencies, riots or civil unrest, revolution, insurrections, epidemics, government proration or regulation, newly implemented or enforced laws, regulations, or ordinances, actions of courts of competent jurisdiction, strikes, lockouts, differences with workmen, labor disturbances or disputes (whether or not relating to either Party’s workforce), breakage or breakdown of equipment, facilities, tankage, or pipelines, shortage of supplies or raw materials, or restraints or delays affecting carriers, manufacturers, or distributors, provided that, if the event in question continues for a continuous period in excess of 120 days, either Party may terminate the Agreement and these General Terms and Conditions or any Transaction Agreement with respect to future deliveries of Products upon notice to the other Party. If by reason of any such circumstances, Seller's supply of Products is insufficient to meet all of its delivery requirements, Seller shall have the right, at its option, and without liability to Buyer, to apportion its available Products among any and all parties to which it is obligated to make deliveries, including its affiliated divisions and companies, in such manner as Seller reasonably believes fair and equitable, including, but not limited to, an allocation based on historical or planned deliveries. Seller shall have no obligation to make up any shortages to Buyer resulting from any allocation hereunder.

 

5. Hazard Warnings; Safety Data Sheets. Seller has provided Buyer with Safety Data Sheets for the Products (the “Safety Data Sheets”). Buyer acknowledges the risks and hazards associated with handling and using the Products. Buyer represents that it has complete knowledge of the hazards of the Products and that it undertakes and assumes full responsibility to maintain, observe, and communicate adequately 

III-1

 

SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT OF THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY SUBMITTED TO THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH THREE ASTERISKS (***).

 

to its agents, employees, customers, and contractors all necessary information for the safe handling and use of the Products. Buyer agrees without limitation to promptly and properly provide to its employees, customers, and community representatives, as appropriate, any information provided by Seller relating to hazards, human health, or human or environmental safety on the Products. Buyer assumes, as to its employees, independent contractors, and subsequent purchasers of the Products, all responsibility for all such necessary warnings or other precautionary measures relating to hazards to person and property associated with the Products.

 

6. Exclusion of Certain Types of Damages. EXCEPT WITH RESPECT TO CLAIMS MADE BY THIRD PARTIES FOR WHICH SELLER HAS AN OBLIGATION TO INDEMNIFY BUYER, NEITHER PARTY SHALL BE LIABLE TO THE OTHER UNDER ANY CIRCUMSTANCES FOR ANY DAMAGES PERTAINING TO LOSS OF USE, LOSS OF REVENUE, LOSS OF PROFIT, OR BUSINESS INTERRUPTION, OR FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE, SPECIAL, OR SPECULATIVE DAMAGES, WHETHER ARISING OUT OF BREACH OF CONTRACT, TORT, OR OTHERWISE, REGARDLESS OF WHETHER SUCH DAMAGES WERE FORESEEABLE AND WHETHER OR NOT EITHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND NOTWITHSTANDING THE FAILURE OF ANY AGREED OR OTHER REMEDY OF ITS ESSENTIAL PURPOSE.

 

7. Miscellaneous.

 

(a) Notices. Any notice between the Parties must be in writing (which shall include electronic mail (“Email”)) and will be effective, and any applicable time period shall commence, when (a) delivered to the recipient Party at the address given by the Recipient Party in a Transaction Agreement by a nationally recognized delivery service (costs prepaid) with evidence of delivery or (b) transmitted by Email to the recipient Party at the Email address given by the Recipient Party in a Transaction Agreement.

 

(b) Entire Agreement. The Agreement and these General Terms and Conditions, supersede all prior agreements, whether written or oral, between the Parties with respect to the relevant subject matter and constitute (along with any exhibits or other documents to be delivered pursuant thereto) a complete and exclusive statement of the terms of agreement between the Parties. The Agreement and these General Terms and Conditions may only be amended, supplemented, or modified by a writing executed by each of the Parties.

 

(c) Governing Law. All matters relating to or arising out of these General Terms and Conditions or any Transaction Agreement, whether sounding in contract, tort, or otherwise, will be governed by and construed and interpreted under the laws of the State of Kansas without regard to conflicts of laws principles that would require the application of any other State’s law. The United Nations Convention on Contracts for the International Sale of Goods or any subsequently enacted treaty or convention of similar nature shall not apply to these General Terms and Conditions or any Transaction Agreement.

 

(d) WAIVER OF JURY TRIAL. EACH PARTY, KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY, WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY PROCEEDING ARISING OUT OF OR RELATING TO THE AGREEMENT AND THESE GENERAL TERMS AND CONDITIONS OR ANY TRANSACTION AGREEMENT, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE.

 

(e) No Waiver. Except as expressly provided otherwise in the Agreement and these General Terms and Conditions, neither any failure nor any delay by any Party in exercising any right, power, or privilege will operate as a waiver of such right, power, or privilege, and no single or partial exercise of any such right, power, or privilege will preclude any other or further exercise of such right, power, or privilege or the 

III-2

 

SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT OF THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY SUBMITTED TO THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH THREE ASTERISKS (***).

 

exercise of any other right, power, or privilege.

 

(f) No Third Party Beneficiaries. Except as may be expressly set forth in the Agreement and these General Terms and Conditions, nothing in these General Terms and Conditions or any Transaction Agreement shall entitle any person other than Seller or Buyer, or their successors or assigns, to any claim, cause of action, right, or remedy of any kind relating to the matters contemplated hereby.

 

(g) Survival. The terms of the Agreement and these General Terms and Conditions which expressly or by their nature are intended to survive the termination shall continue in full force and effect notwithstanding the termination of such other provisions which are not intended to survive.

 

(h) Severability. If any provision of the Agreement and these General Terms and Conditions is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of the Agreement and these General Terms and Conditions will remain in full force and effect. Any provision of the Agreement and these General Terms and Conditions held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

 

(i) Counterparts and Electronic Signatures. Agreements between the Parties may be executed in one or more counterparts, each of which will be deemed to be an original copy and all of which, when taken together, will be deemed to constitute one and the same agreement or document, and will be effective when counterparts have been signed by each of the Parties and delivered to the other Parties. A manual signature on the signature page to an agreement, an image of which shall have been transmitted electronically, will constitute an original signature for all purposes. The delivery of copies of the signature page an agreement or other document to be delivered pursuant to an agreement, including executed signature pages where required, by electronic transmission will constitute effective delivery for all purposes.

III-3RESTATED

 

Indenture

 

 

 

SOUTHWESTERN

ASSOCIATED TELEPHONE COMPANY

 

TO

 

FIRST NATIONAL BANK IN DALLAS,

TRUSTEE

 

 

 

DATED JUNE 1, 1940

 

 

 

RESTATED THROUGH THIRTY-NINTH SUPPLEMENTAL INDENTURE
DATED MARCH 25, 2008

 

	NOTE:	All
    text retyped appears in script. Any additions to or changes in wording of Original Indenture appear in script and are underscored.

    	 

    	i

    

TABLE
OF CONTENTS*

 

	 	Page	 	Section
	Parties	1	 	 
	Recitals	1	 	 
	Qualification
    as foreign corporation	1	 	 
	Ownership
    of and authority to mortgage property	1	 	 
	Purpose
    of Indenture	1	 	 
	Action
    of Stockholders and Directors	1	 	 
	Description
    of bonds	1	 	 
	Form
    of coupon bonds of Series A	2	 	 
	Form
    of coupon	6	 	 
	Form
    of registered bond of Series A	7	 	 
	Form
    of Trustee’s certificate	10	 	 
	Form
    of bonds of other series	10	 	 
	Performance
    of acts necessary to legality	11	 	 
	Granting
    Clause	11	 	 
	Recitation
    of consideration	11	 	 
	General
    description of property pledged	11	 	 
	Property
    exempt and reserved from Indenture	12	 	 
	Specific
    description of property	15	 	 
	Description
    of parcels of land	16	 	 
	In
    Texas	16	 	 
	In
    New Mexico	28	 	 
	In
    Oklahoma	29	 	 
	In
    Louisiana	32	 	 
	In
    Kansas	32	 	 
	Securities
    hereafter pledged as additional security	33	 	 
	After-acquired
    property pledged	34	 	 
	Hereditaments,
    appurtenances, rents, issues, profits and other interests pledged	34	 	 
	Subject
    to excepted encumbrances and indenture to be discharged 	34	 	 
	Habendum	35	 	 
	Grant
    in Trust	35	 	 
	 	 	 	 
	ARTICLE
    I
	 	 	 	 
	DEFINITIONS
	 	 	 	 
	Application
    of definitions	36	 	1
	“the
    Company”	36	 	2
	“the
    Trustee”	36	 	2
	“Board
    of Directors”	36	 	2
	“responsible
    officers,” “responsible officer”	36	 	2
	“holder”	36	 	2
	“obligor”	37	 	2
	“the
    lien hereof”, “the lien of this Indenture”	37	 	2

 

 

* The table of contents was not a part of the Indenture
as executed.

    	 

    	ii

    

	 	Page	 	Section
	“excepted
    encumbrances”	37	 	2
	“cost”	38	 	2
	“fair
    value”	38	 	2
	“then
    fair value”	38	 	2
	“mortgaged
    and pledged property,” “trust estate”	39	 	2
	“proceeds
    of released property”	39	 	2
	“outstanding”	39	 	2
	“daily
    newspaper”	40	 	2
	“resolution”	40	 	3
	“treasurer’s
    certificate”	41	 	3
	“engineer”	41	 	3
	“independent
    engineer”	41	 	3
	“engineer’s
    certificate”	41	 	3
	“independent
    engineer’s certificate”	41	 	3
	“practicing
    accountant”	41	 	3
	“independent
    public accountant”	42	 	3
	“accountant’s
    certificate”	42	 	3
	“independent
    public accountant’s certificate”	42	 	3
	“affiliate”	42	 	3
	“control,”
    “controlling,” “controlled”	42	 	3
	“person”	42	 	3
	“opinion
    of counsel”	42	 	3
	Acceptance
    and approval of certificates and opinions	43	 	3
	Contents
    of certificates and opinions	43	 	3
	“application”	44	 	3
	Amount
    to be deposited to pay or redeem bonds or indebtedness 	44	 	3
	“property
    additions”	44	 	4
	“amount”
    of property additions	45	 	4
	“fundable
    property”	46	 	4
	“unfundable
    property”	46	 	4
	“plant
    or property operated by others”	46	 	4
	“retirements”	46	 	5
	“net
    property additions”	47	 	6
	“unfunded
    net property additions”	48	 	7
	“prior
    lien”	49	 	8
	“prior
    lien bonds”	49	 	8
	“outstanding
    prior lien bonds”	49	 	8
	“net
    earnings certificate”	50	 	9
	Terms
    of net earnings certificate	50	 	9
	“net
    earnings before depreciation”	50	 	9
	“net
    earnings after depreciation”	50	 	9
	Specifications
    for computations	51	 	9
	“applicable
    net non-operating revenues”	51	 	9
	Statement
    of interest charges and of principal indebtedness	52	 	9
	“applicable
    interest earnings requirement”	52	 	9
	Computations
    for property subject to prior lien bonds	53	 	9
	Property acquired during period covered	54	 	9

    	 

    	iii

    

ARTICLE II

 

	 	Page	 	Section
	FORM,
    EXECUTION, REGISTRATION AND EXCHANGE OF BONDS
	 	 	 	 
	Amount
    of bonds issuable	54	 	10
	Bonds
    issuable in series	54	 	10
	Directors
    to determine date, maturity, interest rate, designation, form, number, place of payment and registration and transfer	55	 	10
	Principal
    and interest may be made payable without deduction for taxes	55	 	10
	Bonds
    may contain sinking fund and conversion provisions	55	 	10
	Exchange
    of bonds may be permitted	55	 	10
	Bonds
    may be redeemable at option of Company	56	 	10
	Unissued
    coupon bonds reserved to exchange for registered bonds	56	 	11
	Dates
    of coupon and fully registered bonds	57	 	12
	Bonds
    may bear legend required by stock exchange	57	 	13
	Transfers
    and exchanges of bonds	57	 	14
	Books
    for registration and transfer of bonds	58	 	15
	Designation
    of place for transfer of bonds	58	 	15
	Registration
    of coupon bonds as to principal	58	 	15
	Cancellation
    of surrendered registered bonds	58	 	15
	Method
    of transferring registered bonds	58	 	15
	Execution
    of bonds and facsimile signature on coupons	59	 	16
	Bonds
    executed by former officers	59	 	16
	Temporary
    bonds may be issued	59	 	17
	Exchange
    of temporary bonds for definitive bonds	59	 	17
	Exchange
    of temporary bonds	60	 	17
	Lost,
    stolen, destroyed or mutilated bonds	60	 	18
	Trustee’s
    certificate to be endorsed on bonds	60	 	19
	Designation
    of Series A bonds	61	 	20
	Date,
    maturity, interest rate, title, denomination and numbers of coupon bonds of Series A	61	 	20
	Coupon
    bonds of Series A registerable as to principal	61	 	20
	Series
    A bonds may be issued as registered bonds	61	 	20
	Numbering
    of registered bonds of Series A	61	 	20
	Series
    A bonds payable in coin or currency of the United States	61	 	20
	Places
    of payment of Series A bonds	61	 	20
	Redemption
    provisions of Series A bonds	62	 	20
	Registered
    bonds of Series A may be transferred at office of Trustee	63	 	20
	 	 	 	 
	ARTICLE III
	 	 	 	 
	ORIGINAL
    ISSUE OF BONDS
	 	 	 	 
	Initial issue of $3,250,000 of Series A bonds	63	 	21

    	 

    	iv

    

ARTICLE IV

 

	 	 	 	Page	 	Section
	ISSUANCE OF BONDS UPON THE BASIS OF PROPERTY ADDITIONS
	 	 	 	 	 	 
	Bonds may be authenticated and delivered on basis of property additions 	 	 	 
	Provided that:	63	 	22
	 	(1)	Prior
    liens on property additions are discharged	64	 	23
	 	(2)	The
    principal amount does not exceed 60% of unfunded net property additions	64	 	24
	 	(3)	Net
    earnings of Company comply with subdivision III of Section 9	64	 	25
	 	Upon receipt by Trustee of:	64	 	26
	 	(1)	Resolution
    of directors	65	 	26
	 	(2)	Treasurer’s
    certificate	65	 	26
	 	(3)	Engineer’s
    certificate as to value	65	 	26
	 	(4)	Accountant’s
    certificate	67	 	26
	 	(5)	Independent
    engineer’s and independent public accountant’s certificate on plant operated by others	68	 	26
	 	(6)	Net
    earnings certificate	69	 	26
	 	(7)	Opinion
    of counsel	69	 	26
	 	(8)	Instruments
    of conveyance	71	 	26
	 	(9)	Cash,
    if any, for prior lien bonds	71	 	26
	 	 	 	 	 	 
	ARTICLE
    V
	 	 	 	 	 	 
	ISSUANCE OF BONDS UPON RETIREMENT OF BONDS PREVIOUSLY OUTSTANDING
	 	 	 	 	 	 
	Bonds may be authenticated and delivered on account of the payment, cancellation or redemption of bonds	71	 	27
	 	Upon receipt by Trustee of:	72	 	28
	 	(a)	Bonds
    equal to amount to be authenticated	72	 	28
	 	(b)	Or
    cash to pay at maturity or redemption of bonds	72	 	28
	 	(c)	Treasurer’s
    certificates and opinion of counsel	72	 	28
	 	(d)	Net
    earnings certificate including interest on unissued or retired bonds	73	 	29
	Bonds made basis of issue to be cremated	74	 	30
	 	 	 	 	 	 
	ARTICLE
    VI
	 	 	 	 	 	 
	ISSUANCE OF BONDS UPON DEPOSIT OF CASH WITH TRUSTEE
	 	 	 	 	 	 
	Bonds may be authenticated and delivered on deposit of cash with Trustee	74	 	31
	 	Upon receipt by Trustee of	74	 	31
	 	(1)	Resolution
    of directors	74	 	31
	 	(2)	Treasurer’s
    certificate	74	 	31
	 	(3)	Net
    earnings certificate	74	 	31

    	 

    	v

    

	 	 	 	Page	 	Section
	 	(4)	Opinion
    of counsel	74	 	31
	 	(5)	Certificates
    required by opinion of counsel	75	 	31
	Cash to be held in trust as part of pledged property	75	 	32
	Deposited cash may be withdrawn in lieu of bonds for property additions	76	 	32
	Deposited cash may be withdrawn under Section 62	76	 	33
	 	 	 	 	 	 
	ARTICLE VII
	 	 	 	 	 	 
	PARTICULAR COVENANTS OF THE COMPANY
	 	 	 	 	 	 
	Of seizen	76	 	34
	To preserve lien of Indenture and against encumbrances	76	 	34
	To redeem outstanding bonds and discharge Indenture	77	 	34
	To pay principal and interest	77	 	35
	To maintain offices or agencies for payment of principal and interest	78	 	35
	To cancel and deliver paid coupons to Trustee	78	 	35
	To require agreement from paying agents to hold in trust for Trustee and to give notice of defaults	79	 	36
	To pay taxes and discharge liens	80	 	37
	Not to acquire property having prior liens in excess of 60% of cost or having inadequate earnings	81	 	38
	To keep property insured	82	 	39
	Disposition of insurance monies	82	 	39
	Payment of insurance money by Trustee to Company	83	 	39
	To keep property in repair	84	 	40
	To apply 25% of operating revenues for maintenance and replacements	85	 	40
	“maintenance credit”	86	 	40
	“maintenance deficit”	86	 	40
	“maintenance certificate”	86	 	40
	Deposit of cash or bonds for maintenance deficit	87	 	40
	Unfunded net property additions to satisfy maintenance deficit	87	 	40
	Cash deposited on
    account of maintenance deficit may be withdrawn :	88	 	40
	 	(1)	Upon
    treasurer’s certificate and opinion of counsel	88	 	40
	 	(2)	In
    an amount equal to subsequent maintenance credit	88	 	40
	 	(3)	To
    the extent of unfunded net property additions	88	 	40
	 	(4)	Pursuant
    to Section 62	88	 	40
	Unfunded net property additions to satisfy maintenance deficit may be offset by maintenance credit	88	 	40
	Covenants of Company continued	 	 	 
	To comply with applicable laws and ordinances	89	 	41
	To repay advances made by Trustee	90	 	42
	To record and file Indenture	90	 	43
	To furnish to the Trustee:	91	 	43
	 	(1)	Opinion
    of counsel as to recording of the Indenture	91	 	43
	 	(2)	Annual
    opinion of counsel as to recording or rerecording of Indenture	91	 	43

    	 

    	vi

    

	 	 	Page	 	Section
	To perform matters required by law to maintain trust created by Indenture	92	 	43
	Further assurances	92	 	44
	To keep its accounts according to regulations	92	 	45
	To appoint a Trustee to fill vacancies	93	 	46
	Not to issue bonds except in accordance with Indenture	93	 	47
	Not to permit default in payment of prior lien bonds	93	 	47
	 	 	 	 	 
	ARTICLE VIII
	 	 	 	 	 
	BONDHOLDERS’
    LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE
	 	 	 	 	 
	Company will furnish
    names and addresses of bondholders to Trustee	95	 	48
	Trustee shall preserve current lists of bondholders	95	 	49
	Trustee shall furnish lists of bondholders to bondholders	96	 	49
	Or mail communications to bondholders	96	 	49
	Exception	96	 	49
	Trustee not accountable	97	 	49
	Company covenants:	 	 	 
	 	(1)	To
    file reports with Trustee	97	 	50
	 	(2)	To
    file with Trustee and Securities and Exchange Commission reports of compliance with Indenture	98	 	50
	 	(3)	To
    transmit reports to bondholders	98	 	50
	 	(4)	To
    notify Trustee of exchanges on which bonds are listed	99	 	50
	Trustee shall transmit annually to bondholders reports with respect to:	99	 	51
	 	(1)	Its
    eligibility and qualifications	99	 	51
	 	(2)	Advances	99	 	51
	 	(3)	Other
    indebtedness of Company to it	99	 	51
	 	(4)	Property
    and funds in its possession as Trustee	100	 	51
	 	(5)	Releases
    and substitutions of property	100	 	51
	 	(6)	Additional
    bond issues	100	 	51
	 	(7)	Action
    taken by it in performance of duties	100	 	51
	Trustee’s special reports as to releases and substitutions of property and advances	100	 	51
	Persons to receive Trustee’s reports	101	 	51
	Reports by separate or co-trustee	101	 	51
	Computation of bonds outstanding	102	 	51
	 	 	 	 	 
	ARTICLE IX
	 	 	 	 	 
	REDEMPTION AND PURCHASE OF BONDS
	 	 	 	 	 
	Resolution to redeem	102	 	52
	Serial numbers of bonds to be redeemed to be determined by lot	103	 	53
	Publication of notice of redemption	103	 	53

    	 

    	vii

    

	 	 	Page	 	Section
	Deposit of money to redeem	104	 	54
	Payment of bonds called for redemption	104	 	55
	Cessation of right to lien	105	 	55
	New registered bond or bonds to be issued in lieu of unredeemed portion of such bond or bonds	105	 	55
	Purchase of bonds with cash deposited with Trustee	106	 	56
	Notice of purchase	106	 	56
	Invitation of proposals to sell bonds	107	 	56
	Reimbursement of Trustee for expenses of purchase	107	 	56
	Bonds paid or purchased to be cremated	108	 	57
	 	 	 	 	 
	ARTICLE X
	 	 	 	 	 
	POSSESSION, USE AND RELEASE OF MORTGAGED AND PLEDGED PROPERTY
	 	 	 	 	 
	Company may possess, manage and operate mortgaged property until default	108	 	58
	Company may sell machinery, equipment, etc. upon substitution	109	 	59
	Company may change or alter rights of way, leases and contracts	109	 	59
	Company may withdraw cash on substituting obligations of United States	109	 	59
	Trustee to release other property of Company upon receipt of:	111	 	60
	 	(1)	Resolution
    of directors	111	 	60
	 	(2)	Engineer’s
    certificate as to consideration, value and need for property	111	 	60
	 	(3)	Cash
    in excess of bonds delivered to Trustee, prior lien bonds released and cost of property exchanged	113	 	60
	 	(4)	Opinion
    of counsel	114	 	60
	 	(5)	Opinion
    of counsel as to validity of purchase money obligations	115	 	60
	 	(6)	Instruments
    of conveyance	115	 	60
	Requirement for independent engineer’s certificate	116	 	60
	Release of property not required in telephone operations	116	 	61
	Withdrawal of proceeds of released property	117	 	62
	Trustee to exercise rights of owner of purchase money obligations	119	 	62
	Property acquired in place of released property becomes subject to lien of Indenture	120	 	62
	Cremation of bonds purchased or paid	120	 	62
	Use of deposited money to purchase or redeem bonds	121	 	62
	Release of property taken by eminent domain proceedings	121	 	63
	Receiver or trustee in possession may exercise Company’s rights	122	 	64
	Purchaser of released property not required to investigate authority to release	122	 	65
	No release during default	122	 	66
	Prior lien bonds received by Trustee to be held as mortgaged property	123	 	67
	Cancellation and discharge of prior lien bonds	123	 	67

    	 

    	viii

    

	 	Page	 	Section
	Withdrawal
    of prior lien bonds on deposit of cash	125	 	67
	Trustee
    to exercise rights of holder of prior lien bonds	126	 	67
	 	 	 	 
	ARTICLE
    XI
	 	 	 	 
	REMEDIES IN EVENT OF DEFAULT
	 	 	 	 
	Events
    of default	127	 	68
	Upon
    default Trustee may take possession and operate property 	128	 	68
	Trustee
    to receive and apply monies derived from operation of properties	128	 	68
	Surrender
    of possession upon default being cured	130	 	68
	Trustee
    to collect income from pledged securities during default 	130	 	69
	Company’s
    rights with respect to pledged securities restored upon default being cured	131	 	69
	Trustee’s
    right of entry and appointment of receiver	131	 	70
	Notice
    of default to bondholders	132	 	71
	Declaring
    bonds due in case of default	132	 	72
	Sale
    of property or foreclosure in case of default	133	 	73
	Sale
    of property as entirety unless majority of bondholders otherwise direct	133	 	74
	Notice
    of sale by publication	134	 	74
	Adjournment
    of sale	134	 	74
	Principal
    of all bonds to become due and payable in event of sale 	134	 	74
	Delivery
    of deed or deeds by Trustee	134	 	74
	Trustee
    attorney in fact for Company to execute deed, etc	135	 	74
	Effect
    of sale	135	 	74
	Application
    of proceeds from sale of mortgaged properties	135	 	75
	Purchaser
    at sale may apply bonds and coupons toward payment of purchase price	137	 	76
	Trustee
    or bondholders may be purchasers at sale	137	 	76
	Company
    waives benefit of stay or extension or redemption laws 	137	 	77
	Upon
    default, Company to pay Trustee amount due for principal and interest	138	 	78
	Trustee
    entitled to judgment if Company fails to make payment 	138	 	78
	Trustee
    entitled to file proofs of claim	139	 	78
	Trustee’s
    right to judgment not affected by entry, sale or foreclosure	140	 	78
	Trustee
    entitled to deficiency judgment	140	 	78
	Recovery
    of judgment or levy of execution not to impair lien of Indenture	140	 	78
	Application
    of money collected	141	 	78
	Majority
    of bondholders may control proceedings on default	141	 	79
	Remedies
    cumulative	142	 	80
	Bondholders
    not to sue except after notice and indemnity to Trustee	143	 	81
	Right
    of bondholder to enforce payment of principal and interest not affected	143	 	81

    	 

    	ix

    

	ARTICLE XII
	 	 	 	 
	EVIDENCE OF RIGHTS OF BONDHOLDERS
	 	 	 	 
	Manner
    of execution of request or instrument by bondholders	144	 	82
	Bondholder
    must prove title to be recognized as such	144	 	82
	Bearer
    of coupon or coupon bond treated as absolute owner	145	 	83
	Person
    in whose name bond is registered treated as absolute owner	145	 	83
	Right
    to inspection of bonds	145	 	83
	 	 	 	 
	ARTICLE XIII
	 	 	 	 
	DEFEASANCE
	 	 	 	 
	Release
    and discharge of Indenture	146	 	84
	Company
    may surrender to Trustee for cancellation any bonds previously authenticated hereunder	146	 	84
	Disposition
    of unclaimed monies for payment or redemption of bonds	147	 	85
	 	 	 	 
	ARTICLE XIV
	 	 	 	 
	IMMUNITY OF OFFICERS, STOCKHOLDERS AND DIRECTORS
	 	 	 	 
	Incorporators,
    stockholders, officers and directors exempt from personal liability	147	 	86
	 	 	 	 
	ARTICLE XV
	 	 	 	 
	CONSOLIDATIONS, MERGERS, TRANSFERS AND SALES
	 	 	 	 
	Merger
    or consolidation permitted under certain conditions	148	 	87
	Issuance
    of bonds by successor corporation	149	 	88
	Permanent
    property owned by successor corporation to be deemed plant or property operated by others	151	 	88
	Successor
    corporation may exercise all rights of Company	151	 	89
	Indenture
    not to become lien on other property of successor corporation under certain conditions	151	 	90
	 	 	 	 
	ARTICLE
    XVI
	 	 	 	 
	CONCERNING THE TRUSTEE
	 	 	 	 
	Capital
    and surplus requirement	152	 	91
	Acceptance
    of trust and duties and immunities of Trustee	153	 	92
	Trustee
    not relieved from liability for negligence or willful misconduct	153	 	93
	Prior to default, duties of Trustee are solely
    under Indenture	153	 	93

    	 

    	x

    

	 	Page	 	Section
	Prior to default, Trustee may rely on truth
    of certificates and opinions	153	 	93
	Trustee
    not liable for errors of judgment made in good faith 	154	 	93
	Trustee
    not liable for action in accordance with direction of majority of bondholders	154	 	93
	Recitals
    are statements of Company, not Trustee	154	 	94
	Trustee
    not personally liable in case of entry for debts contracted or liability incurred in operation	154	 	95
	Trustee
    may rely upon certificates and opinions subject to Sections 92 and 93	154	 	96
	Trustee
    not responsible for approval of experts other than independent experts	155	 	97
	Trustee
    may accept certified copy of resolution of directors	155	 	97
	Trustee
    may acquire bonds subject to Sections 104 and 105	155	 	98
	Monies
    received by Trustee shall be held in trust for purposes for which they were paid	156	 	99
	Trustee
    shall be compensated by Company for services and expenses	156	 	100
	Indemnification
    of Trustee for loss without negligence or bad faith	156	 	100
	Trustee
    may claim reimbursement for advances, expenses and disbursements in bankruptcy, receivership and foreclosure proceedings	157	 	101
	Unpaid
    advances, expenses and disbursements to have priority	159	 	101
	Certificate
    of officer of Company shall constitute proof	159	 	102
	Trustee
    has power to give notices	160	 	103
	Trustee
    acquiring conflicting interest must eliminate such interest or resign	160	 	104
	Trustee
    must give notice to bondholders of failure to remove conflicting interest or resign	161	 	104
	Bondholder
    may petition for removal of Trustee for failure to remove conflicting interest or resign	161	 	104
	Situations
    constituting conflicting interests	161	 	104
	Definition
    of “securities” in determining conflicting interests	164	 	104
	Method
    of calculating percentage of securities	164	 	104
	Definition
    of “voting security”	166	 	104
	Definition
    of “director”	166	 	104
	Definition
    of “underwriter”	166	 	104
	Conflict
    provisions applicable to separate or co-trustee	167	 	104
	Apportionment
    of preferential collections if Trustee becomes creditor within four months prior to default	167	 	105
	Transactions
    excepted from apportionment	168	 	105
	Method
    of apportionment	169	 	105
	Application
    of apportionment to Trustee resigned	170	 	105
	Creditor
    relationships excluded from apportionment of preferential collections	171	 	105
	Definition
    of “security”	172	 	105
	Definition
    of “cash transaction”	172	 	105
	Definition
    of “self-liquidating paper”	172	 	105
	Apportionment
provisions applicable to separate or co-trustee	172	 	105

    	 

    	xi

    

	 	 	Page	 	Section
	Resignation of Trustee	172	 	106
	Removal of Trustee	173	 	107
	Appointment of successor Trustee	173	 	108
	Appointment of separate or co-trustee	175	 	109
	Conditions upon appointment of separate or co-trustee	175	 	110
	Notices, etc. to Trustee deemed delivered to all trustees	177	 	111
	Vesting of estates in trustees	177	 	111
	Separate or co-trustee may appoint Trustee agent	177	 	112
	Effect of resignation, etc. of separate or co-trustee	177	 	112
	Acceptance of appointment vests all estates, properties, powers, trusts, duties, etc., in successor trustee	177	 	113
	Predecessor trustee to convey to successor trustee	178	 	113
	Effect of merger of Trustee	178	 	114
	Rights and duties of Trustee governed by Texas law	179	 	115
	 	 	 	 	 
	ARTICLE XVII
	 	 	 	 	 
	SUPPLEMENTAL INDENTURES
	 	 	 	 	 
	Supplemental indentures to be executed when necessary as follows:	179	 	116
	 	(a)	To
    correct descriptions of mortgaged property	179		116
	 	(b)	To
    add limitations on issuance of bonds and covenants for protection of trust estate	180		116
	 	(c)	To
    provide for redemption or sinking fund	180		116
	 	(d)	To
    provide restrictions re new series of bonds	180		116
	 	(e)	To
    provide for exchange of bonds	180		116
	 	(f)	To
    provide for conversion of bonds into stock	180		116
	 	(g)	To
    evidence corporate succession	180		116
	 	(h)	To
    set forth form and substance of bonds other than Series A	181		116
	 	(i)	To
    correct or supplement defective provisions	181		116
	Trustee to exercise uncontrolled discretion	181	 	117
	Trustee authorized to execute and accept supplemental indentures	181	 	118
	Supplemental indentures to be deemed part of Indenture	182	 	118
	 	 	 	 	 
	ARTICLE XVIII
	 	 	 	 	 
	MISCELLANEOUS PROVISIONS
	 	 	 	 	 
	Covenants, etc., to be for sole benefit of parties and bondholders	182	 	119
	Consent to undertaking for costs	182	 	120
	Provisions required by Trust Indenture Act of 1939 controlling	183	 	121
	Reference to Trust Indenture Act is as it was in force at execution of Indenture	183	 	122
	Notices to Company may be served by mail	183	 	123
	Successors and assigns of parties	183	 	124

    	 

    	xii

    

	 	Page	 	Section
	Due
    date of Indenture	184	 	125
	Special
    mortgage and hypothecation of Louisiana properties	184	 	126
	Indenture
    may be enforced by seizure and sale	185	 	126
	Trustee
    appointed agent of bondholders	185	 	126
	Confession
    of judgment	185	 	126
	Headings
    not a part of Indenture	186	 	127
	Execution
    in counterparts	186	 	128
	Principal
    amount of indebtedness initially secured	186	 	129
	Attestation	186	 	 
	Signatures
    and seals of parties	187	 	 
	Acknowledgments
    by Company	188	 	 
	Acknowledgments
    by Trustee	190	 	 
	Certified
    copy of resolution of stockholders	192	 	 
	Certified
    copy of resolutions of Board of Directors	194	 	 
	Certificate
    as to cancellation of Federal stamps	196	 	 
	Recording
    data	197	 	 

    	 

    	

    
	This
    indenture, dated the first day of June, 1940, but actually executed this 22nd
    day of July, 1940, made and entered into by and between SOUTHWESTERN ASSOCIATED TELEPHONE COMPANY, a corporation organized
    and existing under the laws of the State of Delaware (hereinafter commonly referred to as the “Company”), and
    FIRST NATIONAL BANK IN DALLAS, a national banking association organized and existing under the laws of the United States of
    America and having its principal place of business in the City of Dallas, State of Texas (hereinafter commonly referred to
    as the “Trustee”), Witnesseth:	 	 
	 	 	 
	Whereas
    the Company has duly complied with the
    laws of the States of Texas, New Mexico, Oklahoma, Louisiana and Kansas applicable to foreign corporations doing business
    therein; and	 	 
	 	 	 
	Whereas
    the Company owns and possesses the property
    hereinafter described, together with certain franchises, permits, rights and privileges, and has legal authority to make
    and execute this indenture of mortgage or deed of trust upon all such property, franchises, permits, rights and privileges,
    and to issue its bonds as herein provided;
    and	 	 
	 	 	 
	Whereas
    the Company desires to provide funds for
    its corporate purposes and to that end, pursuant to votes or resolutions regularly adopted by its Board of Directors at meetings
    duly and regularly called and held for the purpose, has duly determined, with the consent of its stockholders duly given,
    to borrow money and for that purpose to issue its bonds in an unlimited
    aggregate principal amount outstanding under and secured by this indenture
    of mortgage or deed of trust (hereinafter sometimes referred to as the “Indenture”) on the properties of the Company,
    as hereinafter provided, said bonds to be issued from time to time in one or more series commencing with Series A, 33⁄4%,
    Due June 1, 1970, but subject to the restrictions and provisions contained in this Indenture with respect thereto,
    the bonds of each series	 	29th Supp Ind

    	 

    	

    

	2	 	 
	 	 	 
	to
        be in coupon form with interest coupons attached (hereinafter referred to as “coupon bonds”), and also, at
        the option of the Company, in fully registered form without coupons (hereinafter referred to as “registered bonds”)
        and (except the bonds of Series A, 33⁄4%,
        Due June 1, 1970, which shall be substantially as hereinafter provided) to bear such date, to be payable on such
        date, or, in case of serial maturities, on such dates, and at such place or places, to bear interest at such rate, payable
        at such time or times and at such place or places, to bear such designation or title herein provided for, and to contain
        such provisions, if any, with respect to tax exemptions, tax reimbursements, redemption, sinking fund, conversion into
        stock or other securities of the Company, limitations as to aggregate principal amount of bonds of such series issuable
        and other characteristics not in conflict with the terms of this Indenture as the Board of Directors shall determine with
        respect to each successive series prior to the authentication of any bonds thereof; and

         

        Whereas
        each of the coupon bonds of Series A,
        33⁄4%,
        Due June 1, 1970, is to be substantially in the following form, to wit:

         

        [form
        of coupon bond of series a, 33⁄4%,
        due june 1, 1970]

         

        Southwestern
        Associated Telephone Company

         

        First
        Mortgage Bond, Series
        A, 33⁄4%, Due June 1, 1970
	 	 

 

	No......................	$1000	 	 

 

	Southwestern
    Associated Telephone Company, a Delaware corporation (hereinafter called the “Company”), for value received, hereby
    promises to pay to the bearer or, if this bond is registered
    as to principal, then to the registered
    owner hereof, the principal sum of One Thousand Dollars on the first day of June, 1970, and to pay interest thereon from June
    1, 1940, at the rate of three and three-quarters per centum per annum, payable half yearly on the first day of December and
    the first day of June in each year, until the	 	 

    	 

    	

    

	3	 	 
	 	 	 
	principal
    hereof shall have become due and payable. The installments of such interest falling due on or prior to the maturity of this
    bond shall be paid only in accordance with and upon presentation and surrender of the annexed coupons as they severally become
    due. Both the principal of and the interest on this bond shall be payable at the office or agency of the Company in the City
    of Dallas, State of Texas, or, at the option of the holder, at the office or agency of the Company in the Borough of Manhattan,
    The City of New York, in any coin or currency of the United States of America which at the time of payment is legal tender
    for public and private debts. This bond is one of the bonds issued and to be issued from time to time under and in accordance
    with and all secured by an indenture of mortgage or deed of trust (hereinafter referred to as the “Indenture”)
    dated June 1, 1940, given by the Company to First National Bank in Dallas (hereinafter sometimes referred to as the “Trustee”),
    as Trustee, to which Indenture reference is hereby made for a description of the property mortgaged and pledged, the nature
    and extent of the security and the rights of the holders of said bonds and of the Trustee and of the Company in respect of
    such security. By the terms of the Indenture the bonds to be secured thereby are issuable in series which may vary as to date,
    amount, date of maturity, rate of interest and in other respects as in the Indenture provided. Upon notice published at least
    once in each of four successive calendar weeks, upon any day in each such week, the first publication to be at least thirty
    days and not more than forty-five days prior to the date of redemption, in one daily newspaper printed in the English language
    and of general circulation in the City of Dallas, State of Texas, and in one daily newspaper printed in the English language
    and of general circulation in the Borough of Manhattan, The City of New York, any or all of the Bonds of Series A, 33⁄4%,
    Due June 1, 1970, of which this is one, may be redeemed by the Company at any time and from time to time by the payment of
    the principal amount thereof and accrued interest thereon to the	 	 

    	 

    	

    

	4	 	 
	 	 	 
	date
    of redemption together with a premium equal to a percentage of the principal amount, as follows: six and one-half per centum
    (61⁄2%) if redeemed on or before June 1, 1944; five and one-half per centum (51⁄2%) if redeemed thereafter but on
    or before June 1, 1948; four and one-half per centum (41⁄2%)
    if redeemed thereafter but on or before June 1, 1952; three and one-half per centum (31⁄2%) if redeemed thereafter
    but on or before June 1, 1956; two and one-half per centum (21⁄2%) if redeemed thereafter but on or before June 1, 1960;
    two per centum (2%) if redeemed thereafter but on or before June 1, 1964 ; one per centum (1%)
    if redeemed thereafter but on or before June 1, 1968; and without premium if redeemed after June 1, 1968. In case
    of certain events of default specified in the Indenture, the principal of this bond may be declared or may become due and
    payable on the conditions, at the time, in the manner and with the effect provided in the Indenture. No recourse shall be
    had for the payment of the principal of or interest on this bond, or for any claim based hereon, or otherwise in respect hereof
    or of the Indenture, to or against any incorporator, stockholder, officer or director, past, present or future, as such, of
    the Company, or of any predecessor or successor company, either directly or through the Company, or such predecessor or successor
    company, under any constitution or statute or rule of law, or by the enforcement of any assessment or penalty, or otherwise,
    all such liability of incorporators, stockholders, directors and officers being waived and released by the holder and owner
    hereof by the acceptance of this bond and being likewise waived and released by the terms of the Indenture. This bond shall
    pass by delivery unless registered as to principal in the holder’s name at the principal office of the Trustee, in the
    City of Dallas, State of Texas, on registry books to be kept for the purpose at such place, such registration being noted
    hereon as provided in the Indenture. After such registration no further transfer of this bond shall be valid unless made on
    said books by the registered owner in person or by attorney duly authorized,	 	 

    	 

    	

    

	5	 	 
	 	 	 
	and
        similarly noted hereon; but this bond may be discharged from registry by being in like manner transferred to bearer,
        whereupon transferability by delivery shall be restored; and this bond may again and from time to time be registered or
        transferred to bearer as before. Such registration, however, shall not affect the negotiability of the annexed coupons
        which shall always be transferable by delivery and be payable to bearer. No charge shall be made to the holder hereof
        for any such registration or discharge from registration, except such amount as may be necessary to cover any stamp tax
        or governmental charge. The Company and the Trustee may deem and treat the bearer of this bond, or, if this bond is registered
        as herein authorized, the person in whose name the same is registered, and the holder of any coupon hereto appertaining,
        as the absolute owner for the purpose of receiving payment and for all other purposes. Coupon bonds and registered bonds
        without coupons of this series are inter-changeable in the manner and upon the conditions prescribed in the Indenture.
        Neither this bond nor any interest coupon appertaining hereto shall be valid or become obligatory for any purpose unless
        and until this bond shall have been authenticated by the execution by the Trustee or its successor in trust under the
        Indenture of the certificate endorsed hereon.

        In
        witness whereof, Southwestern Associated Telephone Company has caused this bond
        to be executed in its name by its President or one of its Vice Presidents, and its corporate seal to be hereto affixed
        and attested by its Secretary or one of its Assistant Secretaries, and has caused the coupons hereto annexed to be authenticated
        by a facsimile signature of its Treasurer.

         

        Dated,
        June 1, 1940.

         

        Southwestern
        Associated Telephone Company,
	 	 

 

	 	By	 	 	 	 
	 	 	 	President. 	 	 
	Attest
    :	 	 	 	 	 
	 	 	 	 	 	 
	Secretary.	 	 	 	 	 

 

    	 

    	

    

	6	 	 
	 	 	 
	And
                                                                     Whereas,
                                                                     at the time of the
                                                                     issue thereof, there are to be attached to each of the coupon
                                                                     bonds of Series A, 33⁄4%,
                                                                     Due June 1, 1970, hereby secured, interest coupons
                                                                     representing the future installments of interest from time
                                                                     to time to become due thereon, and each coupon is to be substantially
                                                                     in the following form, to-wit:

         

        [form
        of coupon]
	 	 

 

	No._______________	$18.75	 	 

 

	On
        the first day of ________________________, 19 ___________, South-western Associated Telephone Company will pay to bearer,
        upon the surrender of this coupon, at its office or agency in the City of Dallas, State of Texas, or, at the option of
        the holder, at the office or agency of the Company in the Borough of Manhattan, The City of New York, Eighteen Dollars
        and Seventy-five Cents in any coin or currency of the United States of America which at the time of payment is legal tender
        for public and private debts, being six months’ interest then due on its First Mortgage Bond, Series A, 33⁄4%,
        Due June 1, 1970, No.______________. This coupon shall be treated as negotiable. It will not be payable if said
        bond shall have been called for previous redemption and provision duly made for payment of the redemption price thereof.

         

        _______________________

        Treasurer.       

         

        And
        Whereas each of the registered bonds of Series A, 33⁄4%, Due June 1, 1970, is
        to be substantially in the following form, to wit:
	 	 

    	 

    	

    

	7	 	 
	 	 	 
	[form
        of registered bond of series a, 33⁄4%,
        due june 1,
        1970]

         

        Southwestern
        Associated Telephone Company
	 	 
	 	 	 
	First
Mortgage Bond, Series A, 33⁄4%, Due June 1, 1970	 	 

 

	No.
    ________________	$______________	 	 

 

	Southwestern
    Associated Telephone Company, a Delaware corporation (hereinafter called the “Company”), for value received, hereby
    promises to pay to ________________________________, or registered assigns, the principal sum of ________________________________
    Dollars on the first day of June, 1970, and to pay to the registered owner interest on said sum from the date hereof, at the
    rate of three and three-quarters per centum per annum, payable half yearly on the first day of December and the first day
    of June in each year, until the principal hereof shall have become due and payable. Both the principal of and the interest
    on this bond shall be payable at the office or agency of the Company in the City of Dallas, State of Texas, or, at the option
    of the registered owner, at the office or agency of the Company in the Borough of Manhattan, The City of New York, in any
    coin or currency of the United States of America which at the time of payment is legal tender for public and private debts.
    This bond is one of the bonds issued and to be issued from time to time under and in accordance with and all secured by an
    indenture of mortgage or deed of trust (hereinafter referred to as the “Indenture”) dated June 1, 1940, given
    by the Company to First National Bank in Dallas (hereinafter sometimes referred to as the “Trustee”), as Trustee,
    to which Indenture reference is hereby made for a description of the property mortgaged and pledged, the nature and extent
    of the security and the rights of the holders of said bonds and of the Trustee and of the Company in respect of such security.
    By the terms of the Indenture the bonds to be secured thereby are issuable in series which	 	 

    	 

    	

    

	8	 	 
	 	 	 
	may
    vary as to date, amount, date of maturity, rate of interest and in other respects as in the Indenture provided. Upon notice
    published at least once in each of four successive calendar weeks, upon any day in each such week, the first publication to
    be at least thirty days and not more than forty-five days prior to the date of redemption, in one daily newspaper printed
    in the English language and of general circulation in the City of Dallas, State of Texas, and in one daily newspaper printed
    in the English language and of general circulation in the Borough of Manhattan, The City of New York (provided that publication
    of such notice shall not be required in case all the outstanding bonds of said series are registered bonds without coupons
    and the Company or the Trustee shall have received written acknowledgement from the registered holders of all the then outstanding
    bonds of said series of written notice thereof), any or all of the Bonds of Series A, 33⁄4%, Due June 1, 1970, of which
    this is one, may be redeemed by the Company at any time and from time to time by the payment of the principal amount thereof
    and accrued interest thereon to the date of redemption together with a premium equal to a percentage of the principal amount
    as follows: six and one-half per centum (61⁄2%) if redeemed on or before June 1, 1944; five and one-half per centum (51⁄2%)
    if redeemed thereafter but on or before June 1, 1948; four and one-half per centum (41⁄2%) if redeemed thereafter but
    on or before June 1, 1952; three and one-half per centum (31⁄2%) if redeemed thereafter but on or before June 1, 1956;
    two and one-half per centum (21⁄2%) if redeemed thereafter but on or before June 1, 1960; two per centum (2%) if redeemed
    thereafter but on or before June 1, 1964; one per centum (1%) if redeemed thereafter but on or before June 1, 1968; and without
    premium if redeemed after June 1, 1968. In case of certain events of default specified in the Indenture, the principal of
    this bond may be declared or may become due and payable on the conditions, at the time, in the manner and with the effect
    provided in the Indenture. No recourse shall be had	 	 

    	 

    	

    

	9	 	 
	 	 	 
	for
        the payment of the principal of or interest on this bond, or for any claim based hereon, or otherwise in respect hereof
        or of the Indenture, to or against any incorporator, stockholder, officer or director, past, present or future, as such,
        of the Company, or of any predecessor or successor company, either directly or through the Company, or such predecessor
        or successor company, under any constitution or statute or rule of law, or by the enforcement of any assessment or penalty,
        or otherwise, all such liability of incorporators, stockholders, directors and officers being waived and released by the
        holder and owner hereof by the acceptance of this bond and being likewise waived and released by the terms of the Indenture.
        This bond is transferable by the registered owner hereof, in person or by attorney duly authorized, at the principal office
        of the Trustee, in the City of Dallas, State of Texas, upon the surrender and cancellation of this bond and the payment
        of charges for transfer, and upon any such transfer a new registered bond or bonds, without coupons, of the same series
        and maturity date and for the same aggregate principal amount, in authorized denominations, will be issued to the transferee
        in exchange herefor. The Company and the Trustee may deem and treat the person in whose name this bond is registered as
        the absolute owner for the purpose of receiving payment of or on account of the principal and interest due hereon and
        for all other purposes. Coupon bonds and registered bonds without coupons of this series are interchangeable, and registered
        bonds shall be exchangeable for registered bonds of other authorized denominations having the same aggregate principal
        amount, in the manner and upon the conditions prescribed in the Indenture. This bond shall not be valid or become obligatory
        for any purpose unless and until it shall have been authenticated by the execution by the Trustee or its successor in
        trust under the Indenture of the certificate endorsed hereon.

         

        In
        witness whereof, Southwestern Associated Telephone Company has caused this bond
        to be executed in its name
	 	 

    	 

    	

    

	10	 	 
	 	 	 
	by
    its President or one of its Vice Presidents, and its corporate seal to be hereto affixed and attested by its Secretary or
    one of its Assistant Secretaries.	 	 

 

	Dated,
    ________________________________	 	 
	 	 	 
	Southwestern
    Associated Telephone Company,	 	 

 

	 	By
    _____________________________	 	 
	 	 	President.	 	 
	Attest
    :	 	 	 	 
	 	 	 	 
	Secretary.      	 	 	 

 

	And
        Whereas, on each of the coupon bonds and on each of the registered bonds of each
        and every series issued under and secured by this Indenture (whether in temporary or definitive form) there is to be endorsed
        a certificate of the Trustee substantially in the following form, to wit:

         

        [trustee’s
        certificate]

         

        This
        bond is one of the bonds of the series designated therein, described in the within mentioned Indenture.

         

        First
        National Bank in Dallas,        

        As
        Trustee,

         

        By
        _____________________________

        Authorized
        Officer.
	 	 
	 	 	 
	And
    Whereas the bonds of each series other
    than Series A,
    33⁄4%,
    Due     June 1, 1970, and the interest
    coupons     to be attached to the coupon bonds of each such series are to be substantially in the forms above set forth,
    respectively,     with such modifications thereof and additions thereto or eliminations therefrom, author-	 	 

    	 

    	

    

	11	 	 
	 	 	 
	ized
        or permitted by this Indenture as to any particular series, as in the opinion of the Board of Directors of the Company
        at the time may be necessary or proper and as may be satisfactory to the Trustee;

         

        And
        Whereas all acts and things necessary to make the bonds, when authenticated by
        the Trustee and issued as in this Indenture provided, the valid, binding and legal obligations of the Company, and to
        constitute this Indenture a valid mortgage and deed of trust to secure the payment of the principal of and interest on
        all bonds issued hereunder, have been done and performed, and the creation, execution and delivery of this Indenture and
        the creation, execution and issue of bonds subject to the terms hereof, have in all respects been duly authorized;

         

        Now
        Therefore, in
        consideration of the premises, and of the acceptance and purchase of the bonds by the holders thereof, and of the sum
        of One Dollar duly paid by the Trustee to the Company, and of other good and valuable considerations, the receipt whereof
        is hereby acknowledged, and for the purpose of securing the due and punctual payment of the principal of and interest
        on all bonds which shall be issued hereunder, and for the purpose of securing the faithful performance and observance
        of all covenants and conditions hereinafter, and in any supplemental indenture, set forth, the Company has given, granted,
        bargained, sold, transferred, assigned, hypothecated, pledged, mortgaged, warranted and conveyed, and by these presents
        does give, grant, bargain, sell, transfer, assign, hypothecate, pledge, mortgage, warrant and convey unto First National
        Bank in Dallas, as Trustee, as herein provided, and its successor or successors in the trust hereby created, and to their
        assigns forever, all the right, title and interest of the Company in and to any and all premises, property, franchises
        and rights of every kind and description, real, personal and mixed, tangible and intangible, now owned or hereafter acquired
        by the Company, together with the rents, issues and profits therefrom, excepting, however, and there is hereby expressly
        reserved from the lien and effect of this Indenture, all right, title and interest of the Company,
	 	 

    	 

    	

    

	12	 	 
	 	 	 
	now
        or hereafter acquired, in and to (a) all cash, bonds, stocks, obligations and other securities not deposited with the
        Trustee under this Indenture and not required so to be, (b) all accounts and bills receivable, judgments (other than for
        the recovery of real property or establishing a lien, charge or right therein) and other evidences of indebtedness, not
        specifically assigned to and pledged with the Trustee hereunder, and not required so to be, (c) all goods, wares, merchandise,
        materials and/or supplies acquired or manufactured by the Company for sale or consumption in the ordinary course of business,
        (d) all motor vehicles and trailers, and (e) all the following pieces or parcels of land: 

         

        First.
        The following described real estate situated in the following named Counties
        in the State of Texas:

         

        NOTE:
        Property Descriptions  pp. 12-14 deleted
	 	 

    	 

    	

    
	15	 	 
	 	 	 
	Without in any way limiting or restricting
    the generality of the foregoing description, or the foregoing exception and reservation, the Company hereby expressly gives,
    grants, bargains, sells, transfers, assigns, hypothecates, pledges, mortgages, warrants and conveys unto the Trustee, its
    successors and assigns forever, all the following described property located in the counties of Archer, Armstrong, Atascosa,
    Bailey, Baylor, Bexar, Bowie, Briscoe, Brooks, Calhoun, Cameron, Carson, Cass, Chambers, Childress, Cochran, Collingsworth,
    Cottle, Crosby, Dallam, Dawson, DeWitt, Dickens, Donley, Fayette, Floyd, Foard, Frio, Gaines, Galveston, Garza, Gonzales,
    Guadalupe, Hale, Hall, Hansford, Hardeman, Harris, Hartley, Haskell, Hays, Hemphill, Hidalgo, Hockley, Jack, Jackson, Jim
    Wells, Jones, Kendall, King, Knox, Lamb, La Salle, Lipscomb, Live Oak, Lubbock, Lynn, McMullen, Matagorda, Morris, Motley,
    Nueces, Ochiltree, Oldham, Parmer, Befugio, Roberts, San Patricio, Sherman, Starr, Stonewall, Swisher, Terry, Throckmorton,
    Titus, Victoria, Webb, Wheeler, Wichita, Willacy, Wilson, Yoakum and Young, in the State of Texas, and in the counties of
    Curry, Eddy and Lea, in ‘the State of New Mexico, and in the counties of Beaver, Cimarron, Creek, Ellis, Garfield, Harmon,
    Harper, Kay, Lincoln, Logan, Noble, Pawnee, Payne, Roger Mills, Texas, Woods and Woodward, in the State of Oklahoma, and
    in Caddo Parish in the State of Louisiana, and in the county of Morton in the State of Kansas, together with the tenements,
    hereditaments and appurtenances thereunto belonging or appertaining, to-wit:	 	 
	 	 	 
	First. All and singular
    the telephone systems and properties of the Company located in and serving the municipalities and/or communities of Abernathy,
    Agua Dulce, Allred, Alta Loma, Amherst, Anton, Aspermont, Austwell, Avinger, Benjamin, Bishop, Blessing, Bloomington, Boerne,
    Booker, Bovina, Brownfield, Bryson, Buda, Channing, Charlotte, Clarendon, Claude, Crosby, Crosbyton, Crowell, Daingerfield,
    Dalhart, Darrouzett, DeKalb, Denver City, Dickens, Dickinson, Dilley, Dodson, Dundee, Estelline, Falfurrias, Follett, Fowlerton,
    Friona, George West, Gonzales, Goose Creek, Goree, Gregory, Groom, Happy, Haskell,	 	 

    	 

    	

    

	16	 	 
	 	 	 
	Higgins, Holliday, Hughes Springs, Idalou,
    Jermyn, Jourdanton, Kemah, Kingsbury, Kyle, Knox City, La Feria, Lakeview, Lamesa, La Vernia, League City, Leesville, Levelland,
    Lipscomb, Littlefield, Lorenzo, Lyford, Markham, Matador, McAdoo, Meadow, Megargel, Memphis, Miami, Mirando City, Mobeetie,
    Mt. Belvieu, Morton, Muleshoe, Munday, Naples, New Boston, Newcastle, Nixon, Odem, Olney, Olton, Orange Grove, Paducah, Palacios,
    Panhandle, Perryton, Petersburg, Placedo, Portland, Port Lavaca, Post, Quail, Quitaque, Ralls, Raymondville, Redwater, Rio
    Grande, Roaring Springs, Robstown, Rochester, Roma, Ropesville, Rule, Santa Rosa, Seadrift, Seagraves, Seymour, Silverton,
    Smiley, Somerset, Spearman, Stratford, Sudan, Taft, Tahoka, Three Rivers, Throckmorton, Tivoli, Truscott, Turkey, Vega, Waelder,
    Weinert, Wellington, Weslaco, Westhoff, Wheeler, White Deer, Wilson and Winfield, in the State of Texas ; Agra, Arnett, Beaver,
    Billings, Boise City, Buffalo, Carney, Cheyenne, Coyle, Freedom, Gage, Gate, Glencoe, Goodwell, Guymon, Knowles, Laverne,
    Marland, May, Morrison, Mulhall, Perkins, Red Rock, Ripley, Rosston, Shattuck, Supply, Texhoma, Waynoka and Yale, in the State
    of Oklahoma; Carlsbad, Eunice, Hobbs, Jal and Lovington, in the State of New Mexico; Elkhart, in the State of Kansas, and
    Belcher, Gilliam, Hosston, Ida and Vivian, in the State of Louisiana; and all other telephone systems and properties of the
    Company and all of the properties, rights and franchises of the Company, wherever located, now owned or hereafter acquired,
    together with all buildings, structures, telephone and/or telegraph lines, stations, exchanges, wires, cables, conduits, equipment,
    instruments, appliances, tools, leases, rights-of-way, privileges, ordinances, franchises, permits, easements and property
    now owned or hereafter acquired of any kind in anywise pertaining to said systems and properties or any of them, or the operation
    thereof.	 	 
	 	 	 
	Second. The following described
    real estate situated in the following named Counties in the State of Texas:	 	 
	 	 	 
	NOTE: Property Descriptions pp. 17-33 deleted	 	 

    	 

    	

    

	33	 	 
	 	 	 
	Seventh. Any and all cash, stocks,
    bonds, obligations and other securities and property hereinabove expressly reserved or excepted from the lien hereof (a) which
    may be, notwithstanding such exception or reservation, from time to time hereafter by delivery or by writing of any kind for
    the purposes hereof deposited with or assigned or transferred to and pledged with the Trustee by the Company or by any one
    on its behalf or with its written consent, and the Trustee is hereby authorized to receive any such property at any and all
    times as and for additional security, or (b) which, pursuant to any of the provisions of Article XI hereof, may come into
    the possession or control of the Trustee, or of a receiver lawfully appointed upon application of the Trustee, as tolls, rents,
    revenues, issues, earnings, income, products or profits of or from the mortgaged and pledged property;	 	 
	 	 	 
	And the Company further (without intending to limit or restrict the generality
    or inclusiveness of the following description or provisions by the specific descriptions or provisions hereinbefore contained)
    hereby expressly gives, grants, bargains, sells, transfers, assigns, hypothecates, pledges, mortgages, warrants and conveys
    unto the Trustee, its successors and assigns forever, all other property, real, personal and mixed (except any hereinbefore
    expressly excepted) now owned or hereafter acquired by the Company, wheresoever located, including (without in any wise limiting
    or impairing by the enumeration of the same the scope or intent of the foregoing or any description or any exception contained
    in this Indenture) all plants, shops, laboratories, exchanges, office buildings and other structures and the equipment therefor,
    machinery, engines, boilers, dynamos, generators, conduits, pipes.	 	 

    	 

    	

    

	34	 	 
	 	 	 
	connections, poles, wires, cables, overhead
    and underground constructions, switchboards, main frames, brackets, braces, guy wires, guy stubs, drop wires, transmitters,
    receivers, microphones, instruments, tools, implements, apparatus, supplies, furniture, chattels, municipal and other franchises,
    and any and all other property, devices or rights related to the dispatch, transmission, reception or reproduction of messages,
    communication, intelligence, signals, light, vision or sound by electricity or otherwise; all lands, leases, leaseholds, telephone,
    radio, heat, light, gas, power and water contracts, easements, servitudes, licenses, permits, franchises, privileges, immunities,
    rights of way and other rights in or relating to real estate or the occupancy of the same and all the right, title and interest
    of the Company in and to all other property of any kind or nature appertaining to or used, occupied or enjoyed in connection
    with any property hereinbefore described, and it is hereby agreed by the Company that all the property, rights and franchises
    acquired by the Company after the date hereof (except any hereinbefore expressly excepted) shall be as fully embraced within
    the lien hereof as if such property were now owned by the Company and were specifically described herein and conveyed hereby.	 	 
	 	 	 
	Together With
    all and singular the tenements, hereditaments and appurtenances belonging or in any wise appertaining to the aforesaid
    property or any thereof with the reversion and reversions, remainder and remainders and (subject to provisions of Article
    X hereof hereinafter contained) the tolls, rents, revenues, issues, earnings, income, products and profits thereof, and all
    the estate, right, title and interest and claim whatsoever, at law as well as in equity, which the Company now has or may
    hereafter acquire in and to the aforesaid property and franchises and every part and parcel thereof.	 	 
	 	 	 
	Subject,
    However, with respect to property now owned and subject thereto, to the indenture of the Company to City National Bank
    and Trust Company of Chicago (as successor to Chicago Trust Company), Trustee, and Arthur T. Leonard (as successor	 	 

    	 

    	

    

	35	 	 
	 	 	 
	to Arthur J. Baer), Co-Trustee, dated April
    1, 1931, as supplemented, until said indenture is discharged in accordance with the covenants of the Company contained in
    Section 34 hereof, and subject also to existing excepted encumbrances as said term is hereinafter defined in Section 2 hereof,
    and subject, with respect to property hereafter acquired, to all defects and limitations of title and to all encumbrances
    existing at the time of such acquisition.	 	 
	 	 	 
	To
    Have and to Hold all said property, rights and franchises hereby conveyed, assigned, pledged or mortgaged, unto the
    Trustee, its successor or successors in trust, and their assigns forever;	 	 
	 	 	 
	But
    in Trust, Nevertheless, with power of sale, for the equal and proportionate benefit and security of the holders of
    all bonds and interest coupons now or hereafter issued hereunder, pursuant to the provisions hereof, and for the enforcement
    of the payment of said bonds and coupons when payable and the performance of and compliance with the covenants and conditions
    of this Indenture, without any preference, distinction or priority as to lien or otherwise of any bond or bonds over others
    by reason of the difference in time of the actual issue, sale or negotiation thereof or for any other reason whatsoever, except
    as herein otherwise expressly provided; and so that each and every bond now or hereafter issued hereunder shall have the same
    lien, and so that the interest and principal of every such bond shall, subject to the terms hereof, be equally and proportionately
    secured hereby, as if it had been made, executed, delivered, sold and negotiated simultanously with the execution and delivery
    hereof.	 	 
	 	 	 
	And it is expressly declared that all bonds issued
    and secured hereunder are to be issued, authenticated and delivered, and all said property, rights and franchises hereby mortgaged
    or pledged are to be dealt with and disposed of under, upon and subject to the terms, conditions, stipulations, covenants,
    agreements, trusts, uses and purposes hereinafter expressed:	 	 

    	 

    	

    

	36	 	 
	 	 	 
	ARTICLE
I.	 	 
	 	 	 
	Definitions.	 	 
	 	 	 
	Section
    1. The terms specified in the nest succeeding eight Sections hereof, numbered from 2 to 9, both inclusive, shall, for
    all purposes of this Indenture and of any indenture supplemental hereto and of any certificate, opinion or other document
    filed with the Trustee, have the meanings in such Sections specified. Unless otherwise defined in this Indenture, all terms
    used herein shall, for all such purposes, have the meanings assigned to such terms in the Trust Indenture Act of 1939.	 	 
	 	 	 
	Section
    2. The term “the Company” shall mean Southwestern Associated Telephone
    Company, and shall also include its successors and assigns as provided in Article XV hereof.	 	 
	 	 	 
	The term “the Trustee”
    shall mean First National Bank in Dallas, and shall also include its successors
    and assigns as provided in Article XVI hereof.	 	 
	 	 	 
	The term “Board of Directors” shall mean
    the Board of Directors of the Company.	 	 
	 	 	 
	The term “responsible officers” of the
    Trustee shall mean and include the chairman of the board of directors, the president, every vice-president, the cashier, the
    treasurer, every trust officer, every assistant trust officer, and every other officer and assistant officer of the Trustee
    customarily performing functions similar to those performed by the persons who at the time shall be such officers, respectively,
    or to whom any corporate trust matter is referred because of his knowledge of, and familiarity with, a particular subject;
    and the term “responsible officer” shall mean and include any of said officers or persons.	 	 
	 	 	 
	The term “holder”, when used with reference
    to bonds authenticated and delivered hereunder, shall mean the bearer of any bond, the ownership of which is not at the time
    registered as to principal, the registered owner of any coupon bond which is at the time	 	 

    	 

    	

    

	37	 	 
	 	 	 
	duly registered as to principal and the
    registered owner of any registered bond without coupons.	 	 
	 	 	 
	The term “obligor”, when used with reference
    to bonds authenticated and delivered hereunder, shall mean every person who is liable thereon.	 	 
	 	 	 
	The terms “the lien hereof” and “the
    lien of this Indenture” shall mean the lien created or intended to be created by these presents (including the lien
    created by the after-acquired property clauses hereof) and the lien created by any subsequent conveyance or delivery to or
    pledge with the Trustee hereunder (whether made by the Company or any other corporation or any individual, company or co-partnership)
    effectively constituting any property a part of the security held by the Trustee upon the terms and trusts and subject to
    the conditions specified in this Indenture.	 	 
	 	 	 
	The term “excepted encumbrances” shall
    mean any of the following: (a) liens for taxes and assessments not then delinquent on any property of the Company or, if delinquent,
    in the course of contest in good faith; (b) judgments in course of appeal or otherwise in contest in good faith; (c) undetermined
    liens or charges, if any, incidental to construction or current operation; (d) easements, rights of way, reservations, restrictions,
    covenants (other than for the payment of money), party-wall agreements, conditions of record, landlord’s rights of distraint
    and other similar encumbrances, and liens subject to which easements or rights of way may be possessed by the Company, all
    of which, in the opinion of counsel, do not impair the use of such property by the Company or its value as security for the
    bonds issued and to be issued hereunder; (e) rights reserved to or vested in any municipality or public authority by the terms
    of any franchise, grant, license, permit or by any provision of law to purchase or recapture or to designate a purchaser of
    any of the properties of the Company; (f) rights reserved to or vested in any municipality or public authority to use or control
    or regulate any property of the Company; and (g) any obligations or duties of the Company to any municipality or public authority
    with respect to any franchise, grant, license or permit.	 	 

    	 

    	

    

	38	 	 
	 	 	 
	The term “cost”,
    when used with respect to any particular property, shall mean the cost thereof to the, Company if such property was acquired
    by it subsequent to June 1, 1940, October 1, 1944, or, if such property was owned by it on said date,
    the book value thereof on said date without deducting therefrom applicable reserves for depreciation and/or retirements as
    of that date. In determining cost in cases in which property, part of which constitutes property additions and part does not,
    is acquired for a consideration not divided between such parts, or, in cases where the consideration given for property is
    not allocated to the various items of property acquired, the consideration may be allocated to the various parts and items
    of property acquired in any reasonable manner which is in accordance with the requirements of any system of accounting with
    which the Company is compelled to comply by any provision of law, or, if there be no such system, in any manner which the
    accountant making the certificate in which such property is described deems reasonable and in accordance with good accounting
    practice. For the purpose of making such allocation, the accountant may rely on and accept, if he deems it proper so to do,
    any action taken by the Company with respect to such allocation and any valuation and other reports available to such accountant
    with respect to the property concerned; and, in the case of determining the cost of property additions acquired as a part
    of plant or property operated by others, the accountant shall allocate the consideration paid for such plant or property operated
    by others to the various items of property acquired on the basis of the fair values thereof stated by the engineer in the
    independent engineer’s certificate describing the property additions so acquired.	 	1st
    Supp Ind
	 	 	 
	The term “fair value”,
    when used with respect to any particular property described in any certificate required under this Indenture, shall mean
    the fair value of such property to the Company as of a date not more than 90 days prior to the date of such certificate; provided,
    however, that such fair value shall not exceed the Fair value of such property as of the time of acquisition thereof by the
    Company.	 	18th
    Supp Ind
	 	 	 
	The term “then fair value”,
    when used with respect to any particular property described in any certificate required under this Indenture, shall mean
    the fair value of such property as of a date not more than ninety (90) days prior to the date of such certificate.	 	1st
    Supp Ind

    	 

    	

    

	39	 	 
	 	 	 
	Indenture, shall mean the fair value (or a stated amount
    not exceeding the fair value) of such property to the Company as of a date not more than ninety (90) days prior to the date
    of such certificate.	 	 
	 	 	 
	The terms “mortgaged and pledged property” and “trust
    estate” shall mean, as of any particular time, the property which at said time is subject to the lien of this Indenture
    whether such lien be created by these presents (including the lien created by the after-acquired property clauses hereof)
    or by subsequent conveyance or delivery to the Trustee hereunder or otherwise.	 	 
	 	 	 
	The term “proceeds of released property” shall mean the aggregate
    of	 	 
	 	 	 
	(a) cash deposited with the Trustee pursuant to Section 60, 61 or 63
    hereof as consideration for the release of property;	 	 
	 	 	 
	(b) obligations, secured by purchase money mortgage which is a first
    lien upon released property, deposited with the Trustee pursuant to Section 60 or 62 hereof upon the release of such property,
    and proceeds received upon the payment or release of such obligations;	 	 
	 	 	 
	(c) cash representing insurance money retained by the Company and insurance
    money deposited with the Trustee pursuant to the provisions of Section 39 hereof; and	 	 
	 	 	 
	(d) cash received by the Trustee to be held subject to the provisions
    of Section 67 hereof.	 	 
	 	 	 
	The term “outstanding” shall mean, as of any particular time,
    with respect to bonds issued under this Indenture, all bonds which theretofore shall have been authenticated and delivered
    under this Indenture by the Trustee, except (a) bonds theretofore or then paid, retired, cancelled or redeemed and not held
    alive for the benefit of any sinking fund and bonds for the purchase, payment or redemption of which money in the necessary
    amount shall have been or shall be then deposited with or held by the Trustee in	 	 

    	 

    	

    

	40	 	 
	 	 	 
	trust with irrevocable direction so to
    apply the same, (b) bonds held by or then delivered to the Trustee to be held in pledge by the Trustee under any of the provisions
    of this Indenture, (c) bonds in lieu of which bonds have been authenticated and delivered, as provided in Section 18 hereof,
    and (d) coupon bonds held in reserve by the Trustee against registered bonds issued in exchange therefor, as provided in Section
    14 hereof; provided, however, that in determining the percentage of the principal amount of bonds outstanding or of bonds
    of a particular series outstanding entitling the holders thereof to take any action hereunder, or in determining whether the
    holders of the required percentage of the principal amount of bonds outstanding or of bonds of a particular series outstanding
    have concurred in any direction to the Trustee or in any consent, bonds owned by the Company or by any other obligor upon
    the bonds or by any person directly or indirectly controlling, or controlled by, or under direct or indirect common control
    with, the Company or any other obligor upon the bonds, shall be disregarded, except that for the purpose of determining whether
    the Trustee shall be protected in relying on any such direction or consent, only bonds which the Trustee knows are so owned
    shall be so disregarded. Bonds so owned which have been pledged in good faith may be regarded as outstanding if the pledgee
    shall establish to the satisfaction of the Trustee the pledgee’s right to vote such bonds and that the pledgee is not
    a person directly or indirectly controlling, or controlled by, or under direct or indirect common control with, the Company
    or any other obligor upon the bonds. In case of a dispute as to such right, any decision by the Trustee taken upon the advice
    of counsel shall be full protection to the Trustee.	 	 
	 	 	 
	The term “daily newspaper” shall mean a
    newspaper published at least on each secular day other than holidays.	 	 
	 	 	 
	Section
    3. The term “resolution” shall mean a resolution certified by the Secretary or an Assistant Secretary of
    the Company to have been duly adopted by the Board of Directors.	 	 

    	 

    	

    

	41	 	 
	 	 	 
	The term “treasurer’s certificate”
    shall mean a certificate which is signed and verified by the President or a Vice-President and the Treasurer or an Assistant
    Treasurer of the Company and which shall include, in addition to the statements, if any, required by any other applicable
    provision of this Indenture, a statement that the conditions precedent, if any, provided for in this Indenture (including
    any covenants compliance with which constitutes a condition precedent) which relate to the authentication and delivery of
    bonds, to the release or the release and substitution of property subject to the lien of this Indenture, to the satisfaction
    and discharge of this Indenture, or to any other action to be taken by the Trustee at the request or upon the application
    of the Company, as the case may be, have been complied with.	 	 
	 	 	 
	The term “engineer” shall mean a co-partnership
    or a corporation engaged in the engineering profession or an individual who is a practicing engineer.	 	 
	 	 	 
	The term “independent
    engineer” shall mean an engineer, appraiser or other expert who (1) is in fact independent, (2) does not have any direct
    financial interest or any material indirect financial interest in the Company or in any other obligor upon the bonds or in
    any affiliate of the Company or of such other obligor, and (3) is not connected with the Company or such other obligor or
    any affiliate of the Company or of such other obligor, as an officer, employee, promoter, underwriter, trustee, partner, director
    or person performing similar functions.	 	39th
    Supp Ind
	 	 	 
	The term “engineer’s certificate”
    shall mean a certificate signed and verified by the President or a Vice-President of the Company and by an engineer (who may
    be an employee of the Company) appointed by the Board of Directors and satisfactory to the Trustee.	 	 
	 	 	 
	The term “independent engineer’s certificate”
    shall mean a certificate signed and verified by an independent engineer appointed by the Board of Directors and selected or
    approved by the Trustee in the exercise of reasonable care.	 	 
	 	 	 
	The term “practicing accountant” shall
    mean any person or firm actively engaged in accounting work and practicing accountancy,	 	 

    	 

    	

    

	42	 	 
	 	 	 
	who need not be certified or licensed or
    public and who may be in the regular employ of the Company.	 	 
	 	 	 
	The term “independent
    public accountant” shall mean any certified or licensed public accountant who, or any firm of such accountants each
    of whom (1) is infact independent, (2) does not have, any direct financial interest or any material indirect financial interest
    in the Company or in any other obligor upon the bonds or in any affiliate of the Company or of such other obligor and (3)
    is not connected with the Company or such other obligor or any affiliate of the Company or of such other obligor, as an officer,
    employee, promoter, underwriter, trustee, partner, director or person performing similar functions (but may be regularly retained
    to make annual and other similar audits of the books of the Company or any other obligor on the bonds or any affiliate, if
    any, thereof).	 	18th Supp Ind
	 	 	 
	The term “accountant’s certificate”
    shall mean a certificate signed and verified by a practicing accountant appointed by the Board of Directors and satisfactory
    to the Trustee.	 	 
	 	 	 
	The term “independent public accountant’s
    certificate” shall mean a certificate signed and verified by an independent public accountant appointed by the Board
    of Directors and selected or approved by the Trustee in the exercise of reasonable care.	 	 
	 	 	 
	The term “affiliate” shall mean a person
    controlling, controlled by, or under common control with, another person.	 	 
	 	 	 
	The term “control” shall mean the power
    to direct the management and policies of a person, directly or through one or more intermediaries, whether through the ownership
    of voting securities, by contract, or otherwise. The terms “controlling” and controlled” shall have meanings
    correlative to the foregoing.	 	 
	 	 	 
	The term “person” shall mean and include
    an individual, a corporation, a partnership, an association, a joint stock company, a trust, any unincorporated organization
    or any government or political subdivision thereof.	 	 
	 	 	 
	The term “opinion of counsel” shall mean
    an opinion in writing which is signed by counsel (who, except during the continuance, to the knowledge of the Trustee, of
    a default as specified in Section	 	 

    	 

    	

    

	43	 	 
	 	 	 
	68 hereof, may be of counsel to the Company),
    satisfactory to the Trustee, and which shall include, in addition to the statements, if any, required by any other applicable
    provision of this Indenture, a statement that, in his opinion, the conditions precedent, if any, provided for in this Indenture
    (including any covenants compliance with which constitutes a condition precedent) which relate to the authentication and delivery
    of bonds, to the release or the release and substitution of property subject to the lien of this Indenture, to the satisfaction
    and discharge of this Indenture, or to any other action to be taken by the Trustee at the request or upon the application
    of the Company, as the case may be, have been complied with.	 	 
	 	 	 
	The term “Alternative
    Release Certificate” shall mean an engineer’s certificate or independent engineer’s certificate, as the
    case may be. meeting the requirements of the Alternative Release Provisions of Section 60 and substantially in the form attached
    to the Thirty-Ninth Supplemental Indenture dated as of March 25, 2008 as Schedule 2 and incorporated herein by reference.	 	39th
    Supp Ind
	 	 	 
	The acceptance by the Trustee
    of a certificate or opinion shall be sufficient evidence that the signer or the signers have been selected or approved by
    or are satisfactory to the Trustee, as the case may be, within the meaning of this Section 3; and where, under any provision
    of this Indenture or of any indenture supplemental hereto, an independent engineer’s certificate or an independent public
    accountant’s certificate is required, such provision shall be deemed to have been complied with if the Trustee shall
    have received a certificate made by the independent engineer or independent public accountant, as the case may be,
    who shall have been selected or approved by the Trustee.	 	1st
    Supp Ind
	 	 	 
	Each certificate or opinion delivered to the Trustee
    with respect to compliance with a condition or covenant provided for in this Indenture shall include (1) a statement that
    the person making such certificate or opinion has read such covenant or condition; (2) a brief statement as to the nature
    and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion
    are based; (3) a statement that, in the opinion of such person, he has made such examination or investigation as is necessary
    to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and (4)
    a statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with.	 	 

    	 

    	

    

	44	 	 
	 	 	 
	An “application” for the authentication
    and delivery of bonds, or the release of property, or the withdrawal of cash, under any provision of this Indenture, shall
    consist of, and shall not be deemed complete until the Trustee shall have been furnished with, such resolutions, certificates,
    opinions, cash, bonds and other instruments as are required by such provisions to establish the right of the Company to the
    authentication and delivery of such bonds, or to such release or withdrawal, as the case may be, and the date of such application
    shall be deemed to be the date upon which such application shall be so completed.	 	 
	 	 	 
	In addition to such other
    certificates or opinions as may be required by other provisions of this Indenture, every request or application by the Company
    for action by the Trustee shall be accompanied by an opinion of counsel and a treasurer’s certificate, each such opinion
    of counsel and treasurer’s certificate stating that, in the signer’s opinion, the conditions precedent, if any,
    to such action provided for in this Indenture (including any covenants compliance with which constitutes a condition precedent)
    have, been complied with.	 	18th Supp Ind
	 	 	 
	Wherever in this Indenture it is provided or permitted
    that there be deposited with or held in trust by the Trustee or any other person cash, money or funds sufficient or in the
    necessary amount (or other word or words of similar import) to pay or redeem any bonds, obligations or other indebtedness,
    the amount so to be deposited or held shall be the principal amount of such bonds, obligations or other indebtedness and all
    unpaid interest thereon to maturity, unless said bonds, obligations or other indebtedness are redeemable and are to be redeemed
    prior to maturity and there shall be furnished to the Trustee proof satisfactory to the Trustee that notice of such redemption
    on the specified redemption date has been duly given or provision satisfactory to the Trustee shall be made for the giving
    of such notice, in which case the amount of cash, money or funds so to be deposited or held shall be the principal amount
    of such bonds, obligations or indebtedness and all unpaid interest thereon to the redemption date, together with the redemption
    premium, if any.	 	 
	 	 	 
	Section
    4. The term “property additions” shall mean only physical property, including any plant, system, equipment,
    service installation, pole line rights of way or other property, real, personal or mixed (except any hereinafter expressly
    excepted), owned by the Company and acquired, made or constructed by it subsequent to June
    1, 1940, October 1, 1944, and which the Company is authorized to acquire, own and operate and which is subject to the lien of this
    Indenture and used or useful for telephone or radio purposes	 	1st
    Supp Ind

    	 

    	

    

	45	 	 
	 	 	 
	or for the dispatch,
    transmission, reception or reproduction of messages, communications, intelligence, signals, light, vision or sound by electricity
    or otherwise. Permanent improvements, extensions or additions in the process of construction or erection shall be “property
    additions” as of any given date, insofar as actually constructed or erected after June
    1, 1940, October 1, 1944, and before such given date. The term “gross property additions” shall mean all property additions.	 	1st
    Supp Ind
	 	 	 
	The term “property additions” shall not
    include (a) any shares of stock, obligations, bonds, evidences of debt or other securities, or contracts, leases or choses
    in action or cash, (b) going value or good will, as such, (c) any goods, wares or merchandise acquired for the purpose of
    resale in the usual course of business, (d) any materials or supplies, (e) property subject to a prior lien, (f) motor vehicles
    or trailers, (g) any item of property acquired to replace a similar item of property whose retirement has not been credited
    to plant account, or any property whose cost has been charged or is properly chargeable to repairs, maintenance or other operating
    expense account or whose cost has not been charged or is not properly chargeable to plant or plant addition account, or (h)
    any plant or system in which the Company shall acquire only a leasehold interest, or, unless the same shall be movable physical
    property and shall constitute personal property in the opinion of counsel, any betterments, extensions or improvements or
    additions of, upon or to any plant or system in which the Company shall hold only a leasehold interest. There shall not be
    excluded from property additions any plant, system, equipment or other property of the Company by reason of the. fact that
    it may be located upon or under public highways or other places not owned by the Company but installed or constructed pursuant
    to rights held under easements, rights of way, permits, franchises and other like privileges. Materials and supplies shall
    become property additions when installed and charged to plant or plant additions account.	 	 
	 	 	 
	The “amount” of property additions shall
    mean the cost to the Company of such property additions or, if the fair value of	 	 

    	 

    	

    
	46	 	 
	 	 	 
	such property additions is required to be certified in the engineer’s certificate complying
    with the provisions of paragraph (3) of Section 26 describing such property additions, then the “amount” shall
    mean the cost or fair value thereof as certified in such certificate, whichever is less.	 	 
	 	 	 
	The term “fundable
    property” shall mean all mortgaged and pledged property owned by the Company on June 1,
    1940, October 1, 1944, and property additions.	 	1st Supp Ind
	 	 	 
	The term “unfundable property”
shall mean mortgaged and pledged property acquired by the Company subsequent to June 1, 1940, October 1, 1944, which does
not constitute property additions as herein defined.	 	1st Supp Ind
	 	 	 
	The term “plant or property operated by others” shall mean
    any property additions, which, within six (6) months prior to the date of acquisition thereof by the Company, constituted
    plant or property used or operated by others in a business similar to that in which it has been or is to be used or operated
    by the Company, and which plant or property was acquired by the Company, through purchase, consolidation or otherwise. For
    the purpose of determining in what maintenance certificate or what certificate complying with the provisions of paragraph
    (3) of Section 26 or with the provisions of Section 60 hereof, plant or property operated by others shall be described, plant
    or property operated by others shall be deemed to have been acquired by the Company on any day, at the Company’s option,
    in the calendar year in which, or in the calendar year subsequent to the calendar year in which, such plant or property operated
    by others was actually acquired, and unfundable property shall be deemed to have been acquired as property additions as of
    the date on which such unfundable property ceases to be unfundable property because a change of conditions has caused the
    same to come within the term “property additions” as herein defined.	 	 
	 	 	 
	Section
    5. The term “retirements” shall mean the aggregate of:	 	 

    	 

    	

    

	47	 	 
	 	 	 
	(a) The
    cost of fundable property which, subsequent to June 1, 1940, October 1, 1944, shall have become worn
    out or permanently unserviceable or shall have been lost, sold, destroyed, abandoned, surrendered on lapse of title, or
    released from the lien of this Indenture or taken by eminent domain or purchased by any public authority pursuant to the
    right reserved to or vested in it by any license or franchise, or otherwise disposed of by the Company, or retired from
    service for any reason, or which has permanently ceased to be used or useful in the public utility business of the Company,
    less any amount of such cost theretofore or concurrently therewith included in retirements pursuant to paragraph (b) of this
    Section 5; and	 	1st Supp Ind
	 	 	 
	(b) Any amortization of, or other deduction in, any
    account in which is recorded an investment in fundable property, to the extent that any such amortization or deduction is
    applicable to such property; provided, however, that in any certificate required under this Indenture any reduction in any
    such account shall be deemed to be wholly applicable to such property unless there is in such certificate a segregation of
    such account between fundable and unfundable property and a similar segregation of the amortization of or deduction in the
    account.	 	 
	 	 	 
	SECTION 5A.
    The term “net depreciation accurals” shall mean the excess, if
    any, of (a) the aggregate of the provisions for depreciation or amortization in respect of fundable property charged subsequent
    to October 1, 1944 to operating expenses and credited to the depreciation or amortization reserves, over (b) the retirements
    charged subsequent to October 1, 1944 to the depreciation or amortization reserves.	 	1st Supp Ind
	 	 	 
	Section
    6. The term “net property additions” shall mean the balance or deficiency remaining after deducting the
    retirements from the amount of gross property additions. In any certificate required to be filed under this Indenture, the
    amount of net property additions shall be computed by deducting the retirements made during the period covered by such
    certificate     from the amount of the gross property additions made or acquired during such period plus or minus, as the
    case may be, the     amount of net property additions stated in subdivision (h) of the most recent engineer’s
    certificate theretofore filed after     October 1, 1944 complying with the requirements of paragraph (3) of Section 26
    hereof.	 	1st Supp Ind

    	 

    	

    

	48	 	 
	 	 	 
	In case of an application, upon the basis of property
    additions, for the authentication of bonds or the withdrawal of cash, property additions to be acquired concurrently with
    the granting of and being made the basis of such application shall be specified therein and shall be considered and treated
    in such application as already acquired for the purpose of computing the amount of net property additions.	 	 
	 	 	 
	Section
    7. The term “unfunded net property additions”, as of any specified date, shall mean the balance remaining,
    if any, after deducting from the aggregate of the following, as of a date (to be designated in the engineer’s certificate
    filed with respect to such unfunded net property additions) within ninety (90) days of such specified date:	 	 
	 	 	 
	(i) The net property additions;	 	 
	 	 	 
	(ii) The principal amount of bonds
    issued hereunder made the basis of the release of property or made the basis for the withdrawal of, or retired or to be retired
    by the use already made or directed (by direction filed with the Trustee) of, proceeds of released property; and	 	 
	 	 	 
	(iii) proceeds of released property
    then held by the Trustee and for the withdrawal or application of which no request or direction has been filed with the Trustee;	 	 
	 	 	 
	the sum of the following as of such specified date:	 	 
	 	 	 
	(a) ten-sixths (10/6ths) of the
    aggregate principal amount of bonds theretofore authenticated and delivered upon the basis of property additions or for the
    authentication and delivery of which upon such basis application is then pending;	 	 
	 	 	 
	(b) ten-sixths (10/6ths) of the
    amount of cash theretofore deposited with the Trustee for the authentication and delivery of bonds under Section 31 hereof
    and thereafter withdrawn upon the basis of property additions or for the withdrawal of which upon such basis application
    is then pending; and	 	 

    	 

    	

    

	49	 	 
	 	 	 
	(c) the aggregate of
    (i) all maintenance deficits satisfied and (ii) all cash deposited with the Trustee under the provisions of Section 40 hereof
    withdrawn, or for the withdrawal of which application is then pending, upon the basis of property additions, less the total
    of all maintenance credits utilized as provided in said Section 40 hereof to offset any such use of property additions for
    the satisfaction of a maintenance deficit or for the withdrawal of cash so deposited;	 	 
	 	 	 
	provided,
    however, that if the net depreciation accruals are more than the aggregate of the amount computed pursuant to clause “(c)”
    above, then instead of the amount so computed under said clause “(c)” there shall be used the amount of said net
    depreciation accruals.	 	1st Supp Ind
	 	 	 
	In case of an application for the withdrawal of
    cash pursuant to the provisions of paragraph (1) of Section 62 hereof, the amount of cash sought to be withdrawn in such application
    shall not be included in the addition authorized by subdivision (iii) of this Section 7 in making the computation of the unfunded
    net property additions.	 	 
	 	 	 
	The
    term “net property additions reserve” shall mean the unfunded net property additions which would have existed
    on October 1, 1944 except for the execution of the Supplemental Indenture dated as of October 1, 1944; provided that such
    net property additions reserve may be used only for the purpose of satisfying, for the period from January 1, 1944 to and
    including December 31, 1946, any maintenance deficit remaining after certification to the Trustee for maintenance purposes
    of unfunded net property additions made during such period.	 	1st Supp Ind
	 	 	 
	Section
    8. The term “prior lien” shall mean any mortgage or other lien securing outstanding prior lien bonds, vendor’s
    liens, purchase money mortgages and any lien securing other obligations of any nature, but excluding excepted encumbrances,
    prior to the lien of this Indenture as security for any of the bonds issued or to be issued under this Indenture, then existing
    upon any of the mortgaged and pledged property or any property which is to become part of the mortgaged and pledged property.	 	 
	 	 	 
	The term
    “prior lien bonds” shall mean bonds, obligations or other indebtedness secured by prior liens.	 	 
	 	 	 
	The term
    “outstanding prior lien bonds” shall mean as of any particular time all prior lien bonds theretofore authenticated
    and delivered by the trustee of the mortgage or other lien securing the same or, if there be no such trustee, all prior lien
    bonds theretofore made and delivered or incurred, secured by such mortgage or other lien, except (a) prior lien bonds theretofore
    or then paid, retired, redeemed, discharged or cancelled, (b) prior lien bonds for the purchase, payment or redemption of
    which money in the necessary amount shall have been or shall be then deposited with or held in trust, with irrevocable direction
    so to apply the same, by the Trustee hereunder or by the trustee or other holder of the	 	 

    	 

    	

    

	50	 	 
	 	 	 
	mortgage or other lien securing such prior lien bonds, (c) prior lien
    bonds held in pledge by the Trustee hereunder or by the trustee or other holder of the mortgage or other lien securing such
    prior lien bonds or other prior lien bonds (under conditions such that no transfer of ownership or possession of such prior
    lien bonds by the trustee or other holder of such mortgage or other lien is permissible except upon a default thereunder or
    except to the trustee or other holder of the mortgage or other lien securing such prior lien bonds or other prior lien bonds
    for cancellation or to be held uncancelled under the terms of the mortgage or other lien securing such prior lien bonds or
    other prior lien bonds under like conditions), and (d) prior lien bonds authenticated and delivered and not paid, retired,
    redeemed or cancelled or for the payment or redemption of which money shall not have been deposited in trust under the provisions
    of the prior lien securing such prior lien bonds, if other prior lien bonds shall have been authenticated and delivered in
    exchange for, in substitution for or in lieu of any such prior lien bonds.	 	 
	 	 	 
	Section
    9. The term “net earnings certificate” shall mean an independent public accountant’s certificate,
    stating:	 	 
	 	 	 
	I.
    for a period of twelve consecutive calendar months within the fifteen calendar months immediately preceding the month in which
    the application for the authentication and delivery under this Indenture of bonds is made, the “net earnings”
    of the Company, which shall be the balance remaining, if any, after deducting the aggregate of the operating expenses (excluding
    accruals for Federal taxes based on income) and charges to expense to provide for renewals, replacements, depreciation	 	1st Supp Ind

    	 

    	

    

	51	 	 
	 	 	 
	and retirements from the aggregate
    of the operating revenues and the applicable net non-operating revenues; 	 	 
	and specifying, for such
    computation,	 	1st Supp Ind
	 	 	 
	(1) gross operating revenues
    from all sources except those specified in (2) below (excluding therefrom profits and losses from the sale or other disposition
    of capital assets and including only the net amount of revenues derived from telephone toll or telegraph service contracts
    with other telephone or telegraph companies) ;	 	 
	 	 	 
	(2) total net non-operating
    revenues, including income from stocks, bonds or other securities (whether of subsidiaries or not), net earnings from the
    operation of any business other than a telephone or radio business or the business of the dispatch, transmission, reception
    or reproduction of messages, communications, intelligence, signals, light, vision or sound by electricity or otherwise, net
    earnings from the operation of any operating or business unit of the Company of which substantially all of the plant, system,
    equipment and property are not owned by the Company and, except to the extent hereinafter provided in subdivision IV of this
    Section 9, net earnings from the operation of any operating or business unit of the Company of which substantially all of
    the plant, system, equipment and property is not subject to the lien of this Indenture subject to no prior lien;	 	 
	 	 	 
	(3) the “applicable net
    non-operating revenues”, which shall be the net non-operating revenues or an amount equal to fifteen per centum (15%)
    of the “applicable interest earnings requirement” as defined in subdivision III of this Section 9, whichever is
    less:	 	 
	 	 	 
	(4)
    the operating expenses (excluding charges to expense to provide for renewals, replacements, depreciation and retirements
    and excluding accruals for Federal taxes based on income), rentals, insurance, actual charges for current repairs and
    maintenance; and	 	1st Supp Ind

    	 

    	

    

	52	 	 
	 	 	 
	(5)
    the charges to expense to provide for renewals, replacements, depreciation and retirements;	 	 
	 	 	 
	II.
(A) the annual interest charges upon (1) all bonds outstanding hereunder at the date of such certificate, (2) those bonds then
applied for in the application in connection with which such certificate is made and those applied for in any other pending application,
(3) all outstanding prior lien bonds on the date of such certificate, and (4) all other indebtedness (other than indebtedness
for the purchase, payment or redemption of which money in the necessary amount shall have been deposited with the Trustee hereunder
or the trustee or other holder of the mortgage or other lien securing such indebtedness and other than indebtness secured by the
liens of excepted encumbrances) outstanding and not held by or for the account of the Company on the date of such certificate
and secured by lien prior to or of a rank equal with the lien, if any, of this Indenture upon any property of the Company if said
indebtedness has been assumed by the Company or if the Company customarily pays interest charges upon the principal thereof; and	 	 
	 	 	 
	(B)
    the aggregate principal amount of the respective bonds and other obligations and indebtedness on which the annual interest
    charges referred to in clauses (1), (2), (3) and (4) of this subdivision II of this Section 9 are calculated; and	 	 
	 	 	 
	III.
    the “applicable interest earnings requirement”, which shall be an amount equal to two hundred per centum (200%)
    of the aggregate annual interest charges to be specified in accordance with subdivision II (A) of this Section 9.	 	1st Supp Ind

    	 

    	

    

	53	 	 
	 	 	 
	IV. If
there shall be included in computing annual interest charges in accordance with subdivision II of this Section 9 any amount on
account of prior lien bonds pursuant to clause (3) of said subdivision and the property subject to such prior lien constituted
at the time of its acquisition “plant or property operated by others” and the gross operating revenues and the operating
expenses of such property can be determined and segregated, then the Company at its option may include all the net earnings from
the operation of such property in net non-operating revenues pursuant to clause (2) of subdivision I of this Section 9 or may
treat the revenues from and expenses of such operation as hereafter provided in this subdivision IV. If the Company shall elect
not to include all such net earnings in net non-operating revenues, then all the operating expenses of such property (as defined
in clause (4) of subdivision I of this Section 9) and all the charges in respect of such property of the character described
in clause (5) of said subdivision I shall be included pursuant to said clauses
(4) and (5) in the Computation of net earnings provided for in said subdivision;
 in the computation of “net earnings before depreciation” and there shall be included
pursuant to clause (1) of said subdivision I such part or all of the gross operating revenues from the operation of such property
(as defined in said clause (1)) that the net earnings before depreciation of such property (as defined in this
Section 9) as stated in such computation, shall not exceed two hundred per centum (200%) of the amount included in the aggregate
annual interest charges on account of bonds secured by the prior lien on such property.; and in the computation of “net
earnings after depreciation”, there shall be included pursuant to clause (5) of said subdivision I all charges
to expense-to provide for renewals, replacements. depreciation and retirements of said property and pursuant to clause (1) of
said subdivision I such part or all of the gross operating revenues front the operation of such property that the net earnings
after depreciation from such property (as defined in this Section 9) as started in such computation, shall not exceed one hundred
and fifty per centum (150%) of the amount included in the aggregate interest charges on	 	1st Supp Ind

    	 

    	

    

	54	 	 
	 	 	 
	account
    of bonds secured by the prior lien on said property. If there shall remain any gross operating revenues from such
    property after the amount thereof computed as aforesaid has been included in gross operating revenues pursuant to clause (1)
    of subdivision I of this Section 9 in the computation of “net earnings” after depreciation”,
    then the balance of such gross operating revenues shall be deemed net earnings from the operation of such property and included
    in the amount of net non-operating revenues pursuant to clause (2) of said subdivision I.	 	1st Supp Ind
	 	 	 
	
        If any of the property owned by the Company at
        the date of any net earnings certificate shall consist of plant or property operated by others and acquired by the Company during
        or after the period covered by the net earnings certificate, the net earnings of such property (computed in the manner herein specified
        for the computation of the net earnings of the Company) during such period or such part of such period as shall have preceded the
        acquisition thereof by the Company to the extent that the same have not otherwise been included and can be determined, shall be
        treated as net earnings of the Company for all purposes of this Indenture. The net earnings of any property disposed of by the
        Company during or after such period shall not be treated as net earnings of the Company for the purposes of this Indenture.

         
	 	 
	SECTION
    9A. The term “Annual Certificate of Compliance Reporting” or the “Certificate” shall mean a certificate
    prepared by the Company, executed by the President, or the Chief Financial Officer, and the Treasurer, or Assistant Treasurer,
    of the Company, and submitted to the Trustee by March 31 in any year while the 8.5% Series bond remains outstanding containing
    statements of compliance, as well as a list of properties released from the lien of the Indenture, both through December 31
    of the prior year, in the form attached hereto as Schedule 1 and incorporated herein by reference.	 	39th Supp Ind
	 	 
	The
    term “Current Compliance Reporting” means all certificates, opinions of counsel, and reports required by and defined
    in Sections 37, 39, 40, and 50 of the Indenture. Specifically, this includes Tax Certificate and associated Opinion of Counsel
    (Section 37); Insurance Certificate (Section 39); Maintenance Certificate (Section 40); Annual audited financial (Section
    50); and Independent Auditor’s Report (Section 50).	 	Schedule 1 is attached to end of Restated Inden.

    	 

    	

    

	54A	 	 
	 	 	 
	The term
    “Property” means all property, real and personal, subject
    to the lien of the Indenture, as defined in the Granting Clause and Section 2 of the Original Indenture, including the after-acquired
    property provisions.	 	39th Supp Ind
	 	 	 
	The
                                         term “Streamlined Indenture Compliance Reporting” means the simplified
                                         compliance reporting process which eliminates the various certificates and reports required
                                         by Current Compliance Reporting and replaces it with a single Annual Certificate of Compliance
                                         Reporting as defined in this Article I and further described in Article V of this supplemental
                                         indenture.

         
	 	 
	CLOSING
    OF INDENTURE	 	39th Supp Ind
	 	 	 
	It is
    agreed that the Indenture shall be closed and no additional bonds shall be issued under the Indenture; but nothing herein
    contained shall prevent the issuance of bonds under the Indenture to make replacements of any mutilated, lost, stolen or destroyed
    bonds or to effect such transfers and exchanges of bonds as may be permitted by the Indenture.	 	 
	 	 	 
	ARTICLE II.	 	 
	 	 	 
	Form,
    Execution, Registration and Exchange of Bonds.	 	 
	 	 	 
	SECTION
    10. The aggregate principal amount of bonds which may be authenticated and delivered and, outstanding hereunder shall be
    unlimited except as may be otherwise provided by law or by this Indenture. At the option of the Company, bonds may be issued
    in one or more series, the bonds of each series, other than Series A, 33⁄4%, Due
    June 1, 1970, hereinafter in Section 20 hereof described, maturing on such dates and bearing interest at such
    rates respectively as the Board of Directors prior to the authentication thereof may determine.	 	29th Supp Ind

    	 

    	

    

	55	 	 
	 	 	 
	Subject to
    the provisions of Section 20 hereof as to Series A, 33⁄4%, Due June 1, 1970, the form and terms of each series of bonds
    issued hereunder and of the coupons to be attached to the coupon bonds of such series shall be established by resolution of
    the Board of Directors. The bonds and coupons of each series shall be expressed in the English language. The text of the coupon
    bonds, registered bonds, and the Trustee’s certificate shall be respectively substantially of the tenor and purport
    above recited, provided, however, that the form and terms of each series, as established by the Board of Directors, shall
    specify the descriptive title of the bonds (which shall contain the words “First Mortgage Bonds”), the designation
    of series, the date of maturity, serial numbers, and a place or places for the payment of principal and interest and a place
    or places for the registration and transfer of bonds. Any series of bonds may also contain such provisions as the Board of
    Directors may, in their discretion, cause to be inserted therein;	 	 
	 	 	 
	(a) expressing any obligation of the Company for the payment of the principal of the bonds of that series or the interest thereon, or both, without deduction for taxes or for the reimbursement of taxes in case of payment by the bondholders, it being understood that such obligation may be limited to taxes imposed by any taxing authorities of a specified class and may exclude from its operation or be limited to any specified tax or taxes or any portion thereof; or expressing any obligation of the Company for the creation of a sinking fund for bonds of that series, or expressing any obligation of the Company to permit the conversion of bonds of that series into capital stock of the Company of any class:	 	 
	 	 	 
	(b) permitting the bondholders to make, at a specified place or places, any or all of the following exchanges, in each instance the exchange to be for a like aggregate principal amount of bonds, viz., exchanges of coupon bonds for registered bonds, exchanges of registered bonds for coupon bonds, exchanges of coupon bonds for coupon bonds of other denominations, exchanges of registered bonds for	 	 

    	 

    	

    

	56	 	 
	 	 	 
	registered bonds of other denominations, and exchanges
    of bonds of one series for bonds of another series; such privilege of exchange may in any case be made subject to such conditions,
    limitations or restrictions as the Board of Directors shall determine and the privilege of exchange may in any case be conferred
    upon the holders of bonds of one or more denominations and withheld from the holders of bonds of other denominations of the
    same series and may in any case be conferred on the holders of registered bonds and withheld from the holders of coupon bonds
    or vice versa;	 	 
	 	 	 
	(c) reserving to the
    Company the right to redeem all or any part of the bonds of that series before maturity at a time or times and at a redemption
    price or prices to be specified in the form of bond;	 	 
	 	 	 
	(d) expressing any other
    terms and conditions not inconsistent with the provisions hereof, upon which such bonds are to be issued and secured under
    this Indenture.	 	 
	 	 	 
	The
    coupons, attached to bonds
    of any series, representing interest installments may vary in amount to the extent
    necessary to avoid use of a fraction of the lowest denomination of currency at the time in circulation, and, for this purpose,
    interest upon registered bonds without coupons of any series shall (if any bonds of the same series shall be outstanding at
    the time in coupon form) be paid at the same amount as would be payable on coupon bonds of the same series of the largest
    denomination or denominations, if any, issuable in exchange therefor.	 	1st Supp Ind
	 	 	 
	Section
    11. Any series of bonds may be executed, authenticated and delivered originally as coupon bonds or as registered bonds,
    or in part as coupon bonds and in part as registered bonds, of such denomination or denominations as the Board of Directors
    may from time to time authorize. [Whenever any bond shall be issued originally as a registered bond, there shall be reserved
    by the Company unissued an aggregate principal amount of coupon bonds equal to the principal amount of the registered bond
    so issued, and the serial number or numbers of the coupon bond or bonds so reserved unissued shall lie endorsed by the Company
    on such registered bond issued in lieu thereof, but the Company shall not be required to prepare or deliver to the Trustee
    any coupon bond or bonds so reserved, unless and until the holders of the registered bond or bonds on which the numbers of
    such reserved coupon bond or bonds shall have been endorsed shall request the exchange of all or any portion of his registered
    bond or bonds for any such reserved coupon bond or bonds.]	 	(See p. 58a)

    	 

    	

    

	57	 	 
	 	 	 
	Section
    12. Every registered bond shall be dated as of the date of this Indenture or, if
    such bond be authenticated after December 1, 1940, then as of the last interest payment date to which interest has been paid
    on bonds of such series, except that, if any registered bond of any series shall be authenticated upon any interest payment
    date for that series, it shall be dated as of the day of such authentication, unless interest is in default as to that
    series, and except that in case of the issue of any registered bond of any series other
    than Series A, 3-3/4%, Due June 1, 1970, prior to the first interest payment date for that series, such bond shall be dated
    six months prior to the first interest payment date for bonds of that series if interest thereon is payable semi-annually
    (or, if not so payable, then dated as of the date that is such length of time
    prior to the first interest payment date for bonds of that series as such first interest payment date is prior to the second
    interest payment date). The coupon bonds of each series of bonds issued hereunder other than Series A, 3-3/4%,
    Due June 1, 1970, shall be dated as of such date as may be determined by the Board of Directors and designated in the form
    established for such series.	 	 1st
    Supp Ind

    (See p. 58a)
	 	 	 
	Section
    13. Any bond may have imprinted thereon any legend or legends required in order to comply with the rules of any stock
    exchange or to conform to general usage, and the Board of Directors by resolution may amend any legend on bonds then outstanding
    so as to comply with such rules or so as to conform to such usage.	 	 
	 	 	 
	Section
    14. In all cases in which the privilege of exchanging bonds exists and is exercised, the bonds to be exchanged shall
    be surrendered at such place or places as shall be designated by the Board of Directors for the purpose, with all unmatured
    coupons attached (in the case of coupon bonds), and the Company shall execute and the Trustee shall authenticate and deliver
    in exchange therefor the bond or bonds of authorized denominations which the bondholder making the exchange shall be entitled
    to receive. All registered bonds so surrendered for exchange, and all coupon bonds surrendered in exchange for other coupon
    bonds so surrendered, shall be cancelled by the Trustee and a certificate evidencing the cancellation thereof shall be delivered
    to the Company. Coupon bonds surrendered in exchange for registered bonds may be held by the Trustee in reserve against the
    registered bond or bonds issued in exchange for such coupon bonds. [Upon every transfer of bonds as permitted by Section 15
    hereof, and upon every exchange of bonds, the Company may make	 	(See
    p. 58a)

    	 

    	

    

	58	 	 
	 	 	 
	a charge therefor sufficient to reimburse it for any tax or taxes
    or other governmental charge required to be paid by the Company and in addition may charge a sum not exceeding Two Dollars
    ($2) for each new bond issued upon any such transfer or exchange which shall be paid by the party requesting such transfer
    or exchange as a condition precedent to the exercise of the privilege of making such transfer or exchange.] [The Company shall
    not be required to make transfers or exchanges of bonds of any series for a period of ten (10) days next preceding any interest
    payment date of said series.]	 	(See p. 58a)
	 	 	 
	Section
    15. The Company shall keep at such place or places as shall be designated in Section 20 hereof or by resolution of
    the Board of Directors for the purpose, books for the registration and transfer of bonds issued hereunder, which, at all reasonable
    times, shall be open for inspection by the Trustee; and upon the presentation for such purpose at any such place or places,
    the Company will register or cause to be registered therein, and permit to be transferred thereon, under such reasonable regulations
    as it may prescribe, any bonds issued under this Indenture and entitled to registration or transfer at such office. Upon the
    registration of any coupon bond as to principal, the fact of such
    registration shall be noted on such bond. Upon the transfer of any registered bond, the Company shall issue in the name of
    the transferee or transferees a new registered bond or new registered bonds of the same series and of authorized denominations
    for a like principal amount and the Trustee, upon surrender to it for cancellation of the bonds so transferred, shall authenticate
    and deliver new registered bonds to, or upon the order of, him or them. All registered bonds so surrendered for transfer shall
    be cancelled by the Trustee, and a certificate evidencing the cancellation thereof shall be delivered to the Company. In lieu
    of inspecting any books for the registration and transfer of bonds, the Trustee, subject to the provisions of Section 92 hereof,
    shall be entitled to accept and conclusively rely upon a certificate of the agent or officer in charge thereof as to the facts
    and matters therein appearing.	 	 

    	 

    	

    

	-58a-	 	 
	 	 	 
	Exceptions to the Original Indenture as supplemented and amended appear in each of the following Supplemental Indentures:	 	 
	 	 	 
	Seventeenth
    Supplemental Indenture through Thirty – Eighth Supplemental Indenture	 	 
	 	 	 
	ARTICLE I, Section 1:	 	 
	 	 	 
	Notwithstanding the provisions of Section 12 of the Original Indenture as supplemented and amended, the Bonds of the Series Due  **  shall be dated as of the last interest payment date preceding the date of authentication to which interest has been paid on such bonds, except that (i) if any such bond shall be authenticated on any interest payment date to which interest has been paid, it shall be dated as of the date of such authentication, (ii) if any such bond shall be authenticated prior to the close of business on the record date (as hereinafter in this Section defined) with respect to the first interest payment date for the Bonds of the Series Due  **  such bond shall be dated as of     ***            and (iii) if any such bond shall be authenticated after the close of business on the record date with respect to any interest payment date and prior to such interest payment date and there is no existing default in the payment of interest on the Bonds of the Series Due   **   such bond shall be dated as of such interest payment date.	 	 
	 	 	 
	The second sentence of Section 11 of the Original Indenture as supplemented and amended shall not be applicable to Bonds of the Series Due  **  	 	 
	 	 	 
	The last sentence of Section 14 of the Original Indenture as supplemented and amended shall not be applicable to the Bonds of the Series Due  **  . The Company shall not be required to make transfers or exchanges of Bonds of the Series Due  **   for a period of not more than five business days next preceding the mailing of any notice of redemption or to transfer or exchange any such bond, or the portion therefore, which shall have been designated for redemption.	 	 
	 	 	 
	Notwithstanding
    the provisions of the fourth sentence of Section 14 of
    the Original Indenture as supplemented
    and amended, no service charge shall be made for any exchange or transfer of Bonds
    of the Series Due  **   but the Company may require the payment
    of a sum sufficient to cover any tax or taxes or other governmental charge.	 	 
	 	 	 
	
        **
          Year of Bond Maturity

        ***
        Bond Issue Date
	 	 

    	 

    	

    

	59	 	 
	 	 	 
	Section 16.
    All bonds issued hereunder shall, from time to time, be executed on behalf of the Company by its President or one of its
    Vice-Presidents and its corporate seal shall be thereunto affixed or printed thereon and attested by its Secretary or one
    of its Assistant Secretaries. Such execution and attestation, except on Bonds of the 3-3/8% Series, Due October 1, 1974,
    the 4-3/4% Series Due 1977, the Due 1980, the 3% Series Due 1980, the 3-5/8% Series Due 1981, the 3-3/4% Series Due 1982,
    the     4-1/8% Series Due 1983, the 3.40% Series Due 1985, the 4-3/4% Series Due 1987, the 5-1/8% Series Due 1991, the
    4-7/8%     Series     Due 1992, the 4.40% Series Due 1993, the 4-5/8% Series Due 1994 and the 5-3/8% Series Due 1996, may be
    by     facsimile.     The     coupons     to     be     attached to coupon bonds     shall bear the     facsimile
    signature of     the present or any     future     treasurer of     the     Company. In     case any of the officers who
    shall have signed     any bonds or     attested the     seal thereon or     whose     facsimile signature     appears on any
    coupons shall cease      to be such     officers of     the     Company before the     bond so     signed and sealed shall
    have     been actually     authenticated by     the     Trustee or     delivered or issued     by the     Company,     such
    bonds nevertheless may be     authenticated,     delivered and issued with     the same force and effect as     though
    the     person or persons who     signed such     bonds     and attested the seal thereon     or whose     facsimile
    signature     appears on any     coupons     had not ceased to be     such     officer or officers of the     Company. Before
    authenticating     any coupon bonds, the     Trustee shall cut     off, cancel and     cremate all     matured coupons
    thereto attached and         shall deliver to the     Company a        certificate evidencing the     cremation     thereof,
    except that coupon bonds which are     authenticated     in lieu of lost,     stolen, destroyed or mutilated bonds      shall
    bear all coupons which have not been     paid.	 	18th Supp Ind
	 	 	 
	Section
    17. Until definitive bonds of any series issued under this Indenture are ready for
    delivery, there may be authenticated and delivered and issued in lieu of any thereof a temporary typewritten, printed, lithographed
    or engraved bond or bonds substantially of the tenor of the bonds hereinbefore described, with or without one or more coupons,
    and with or without the privilege of registration as to principal, and such temporary bond or bonds may be in such denomination
    or denominations as the Board of Directors may determine. Such temporary bond or bonds shall be entitled to the lien and benefit
    of this Indenture. Upon the exchange for definitive bonds of the same series, which the Company shall make without any charge
    therefor, such temporary bond or bonds and any unmatured coupons attached thereto shall	 	 

    	 

    	

    

	60	 	 
	 	 	 
	be cancelled
    or cremated by the Trustee and upon the request of the Company a certificate of such cancellation or cremation shall be delivered
    to it. When and as interest is paid upon any temporary bond without coupons, the fact of such payment shall be noted thereon,
    unless such bond is a registered bond. Until such definitive bonds are ready for delivery, the holder of one or more temporary
    bonds may exchange the same, upon payment, if the Company shall require, of the charges provided in Section 14 hereof, on
    the surrender thereof in bearer form or, if registered, properly endorsed for transfer, with all unmatured coupons, if any,
    attached, to the Trustee for cancellation, and shall be entitled to receive temporary bonds of the same series of like aggregate
    principal amount of other authorized denominations.	 	 
	 	 	 
	Section
        18. Upon receipt by the Company and the Trustee of evidence satisfactory to them of the loss, theft, destruction
        or mutilation of any bond outstanding hereunder not then matured or subject to payment, and of indemnity satisfactory
        to them, and upon payment, if the Company shall require it, of a reasonable charge and upon reimbursement to the Company
        and the Trustee of all reasonable expense incident thereto, and upon surrender and cancellation of such bond, if mutilated,
        and the coupons appertaining thereto, if any, the Company may execute, and the Trustee may authenticate and deliver,
        a new bond of like tenor and of the same series, in lieu of such lost, stolen, destroyed or mutilated bond. In case of
        the loss, theft, destruction or mutilation of any bond outstanding hereunder which has matured or is then subject to payment
        by redemption, purchase or otherwise, the Trustee and the Company, upon receipt from the owner of such bond of evidence
        satisfactory to them of such loss, theft, destruction or mutilation and upon surrender and cancellation of such bond if
        mutilated and of indemnity satisfactory to them, may pay to the owner of such bond the amount payable thereon without
        the execution, authentication and delivery of a substitute bond.
	 	 
	 	 	 
	Section
    19. No bonds shall be secured hereby unless there shall be endorsed thereon the
    certificate of the Trustee, substan-	 	 

    	 

    	

    

	61	 	 
	 	 	 
	tially in the form hereinbefore recited, that it is one of the bonds (or temporary bonds) herein described; and such certificate on any such bond shall be conclusive evidence that such bond has been duly authenticated and delivered and is secured hereby.	 	 
	 	 	 
	Section 20.
    Notwithstanding any of the provisions hereinbefore in this Article II contained to the contrary, which said provisions in
    so far as they are contrary shall not be applicable to the bonds in this Section 20 described, there shall be a series of
    bonds designated Series A, 33⁄4%, Due June 1, 1970,
    each     of which shall also bear the descriptive title “First Mortgage Bond”, said bonds being sometimes
    hereinafter referred     to as the “bonds of Series A”, and the form thereof and of the appurtenant coupons shall
    contain suitable provisions     with respect to the matters hereinafter in this Section 20 specified. Bonds of Series A, 33⁄4%,
    Due June 1, 1970, shall mature on June 1, 1970, and shall be initially issued as coupon bonds in the denomination of
    $1000 each, numbered consecutively from M-l upwards, registerable as to principal, or, if the Board of Directors shall so
    determine, in the form of registered bonds, which bonds shall be numbered consecutively from R-1
    upwards and shall be of such denominations as the Board of Directors shall approve, and execution and delivery to the
    Trustee     for authentication shall be conclusive evidence of such approval. The serial numbers of registered bonds other
    than those     initially issued shall be such as may be approved by the Trustee and any officer of the Company. They shall
    bear interest     at the rate of three and three-quarters per centum (33⁄4%) per annum, payable semi-annually on
    December 1 and June 1 in each     year; both the principal of and the interest on said bonds shall be payable in any coin or
    currency of the United States of     America which at the time of payment is legal tender for public and private debts, at
    the office or agency of the Company     in the City of Dallas, State of Texas, or, at the option of the holder or owner, at
    the office or agency of the Company in     the Borough of Manhattan, The City of New York. Coupon bonds of Series A,
    33⁄4%, Due June 1, 1970, shall be dated as of June     1, 1940. Coupon	 	 

    	 

    	

    

	62	 	 
	 	 	 
	bonds and registered bonds of said Series A, 33⁄4%,
Due June 1, 1970, of like aggregate principal amount shall be interchangeable at the
option of the holders. Any or all of the bonds of Series A, 33⁄4%, Due June 1, 1970, shall be redeemable at the option of
the Company at any time, and from time to time, prior to maturity, upon notice published at least once in each of four (4) successive
calendar weeks (on any day of each such week), the first publication to be at least thirty days and not more than forty-five days
prior to the date of redemption, in one daily newspaper printed in the English language and of general circulation in the City
of Dallas, State of Texas, and in one daily newspaper printed in the English language and of general circulation in the Borough
of Manhattan, The City of New York (provided that publication of such notice shall not be required in case all the outstanding
bonds of said series are registered bonds and the Company or the Trustee shall have received written acknowledgement from the
registered holders of all the then outstanding bonds of said series of written notice thereof), at the principal amount thereof
and accrued interest thereon to the date of redemption, together with a premium equal to a percentage of the principal amount
thereof determined as follows: six and one-half per centum (61⁄2%) if redeemed on or before June 1, 1944; five and one-half per centum
(51⁄2%) if redeemed thereafter but on or before June 1, 1948; four and one-half
per centum (41⁄2%) if
redeemed thereafter but on or before June 1, 1952; three and one-half per centum (31⁄2%)
if redeemed thereafter but on or before June 1, 1956; two and one-half per centum (21⁄2%) if redeemed thereafter but on or
before June 1, 1960; two per centum (2%) if redeemed thereafter but on or before June 1, 1964; one per centum (1%) if redeemed
thereafter but on or before June 1, 1968; and without premium if redeemed after June 1, 1968.	 	 
	 	 	 
	The owner of any coupon bond of Series
    A, 33⁄4%, Due June 1, 1970, may have the
    ownership thereof registered as to principal at the principal office of the Trustee, in the City of Dallas, State of Texas,
    and such registration noted on such bond. After such registration no transfer of said bond shall be valid unless made	 	 

    	 

    	

    

	63	 	 
	 	 	 
	at said office by the registered owner in person
    or by his duly authorized attorney and similarly noted on such bond; but the same may be discharged from registry by being
    in like manner transferred to bearer and thereupon transferability by delivery shall be restored; but such bond may again
    from time to time be registered or transferred to bearer in accordance with the above procedure. Such registration, however,
    shall not affect the negotiability of the coupons appertaining to such bonds, but every such coupon shall continue to be transferable
    by delivery and shall remain payable to bearer. Registered bonds of Series A, 33⁄4%, Due June 1, 1970, may be transferred
    at the principal office of the Trustee, in the City of Dallas, State of Texas.	 	 
	 	 	 
	ARTICLE III.	 	 
	 	 	 
	Original Issue
    of Bonds.	 	 
	 	 	 
	Section
    21. Bonds of Series A, 33⁄4%, Due June 1, 1970, of the aggregate principal amount of Three Million Two Hundred
    Fifty Thousand Dollars ($3,250,000) shall forthwith be executed by the Company and delivered to the Trustee and shall be authenticated
    by the Trustee and delivered whether before or after the recording hereof, at one time or from time to time, on receipt of
    the order or orders of the Company evidenced by writing or writings, signed by the Company by its President or one of its
    Vice-Presidents and its Treasurer or one of its Assistant Treasurers.	 	 
	 	 	 
	ARTICLE IV.	 	 
	 	 	 
	Issuance
    of Bonds Upon the Basis of Property Additions.	 	 
	 	 	 
	Section
    22. Subject to the limitation as to aggregate principal amount set forth in Section 10 hereof, bonds in addition to
    those provided for in Article III hereof and of any one or more series may from time to time be executed by the Company and
    delivered to the Trustee, and shall be authenticated by the Trus-	 	 

    	 

    	

    

	64	 	 
		 	 
	tee and delivered from time
    to time to or upon the order of the Company upon the basis of property additions, but only in accordance with and subject
    to the conditions, provisions and limitations set forth in the next succeeding sections of this Article IV.	 	 
	 	 	 
	Section
        23. Bonds may be authenticated and delivered at any time under the provisions of this Article IV upon the basis
        of properties which, but for the fact that they are subject to a prior lien, would constitute property additions as defined
        in Article I hereof if, but only if, provision for payment or redemption of the outstanding prior lien bonds secured by
        such prior lien is made prior to or contemporaneously with such authentication by depositing irrevocably in trust with
        the Trustee hereunder, or with the trustee or other holder of such prior lien, funds in an amount sufficient for and for
        the purpose of paying or redeeming such prior lien bonds.

	 	 
	 	 	 
	Section 24.
    Bonds of any one or more series may be authenticated and delivered under the provisions of this Article IV, from time to time,
    upon the basis of property additions for a principal amount not exceeding sixty per centum (60%)
    of the amount of unfunded net property additions.	 	 
	 	 	 
	Section 25.
    No bonds shall be authenticated and delivered on the basis of property additions or of the deposit of cash unless, as shown
    by a net earnings certificate, the net earnings before depreciation and the net earnings after depreciation
    shall have been, for the period referred to in such certificate, not less than the applicable interest earnings requirement
    as defined in subdivision III of Section 9 hereof.	 	1st Supp Ind
	 	 	 
	Section 26. No
    application by the Company to the Trustee for the authentication and delivery of bonds hereunder upon the basis of property
    additions shall be granted by the Trustee until the Trustee shall have received or unless the Trustee shall receive concurrently
    with the granting of such application :	 	 

    	 

    	

    

	65	 	 
	 	 	 
	(1) A resolution
    requesting the Trustee to authenticate and deliver bonds and (a) specifying the principal amount of bonds called for, the
    series thereof, any other matters with respect thereto required or permitted by this Indenture, and (b) specifying the officer,
    or officers, of the Company to whom, or upon whose written order, such bonds shall be delivered.	 	 
	 	 	 
	(2) A treasurer’s
    certificate, dated the date on which the application is made, stating that, so far as known to the signers, the Company is
    not, and upon the granting of the application will not be, in default in the performance of any of the covenants or provisions
    of this Indenture.	 	 
	 	 	 
	(3) An engineer’s
    certificate, dated within ten (10) days of the date on which the application is made, stating:	 	 
	 	 	 
	(a) the amount of net property
additions stated in sub-divsion (b) of the most recent certificate, if any, theretofore filed after October 1, 1944 complying
with the requirements of this paragraph (3) of this Section 26;	 	1st  Supp Ind
	 	 	 
	(b) in reasonable detail the cost of
    the gross property additions made or acquired by the Company since the termination of the period covered by the certificate
    referred to pursuant to subdivision (a) of this paragraph (3) or if no such certificate has been filed, since June 1, 1940, October 1,
    1944, and up to a date within ninety (90) days of the date of the certificate then being filed, which cost, as to such
    property additions as constitute plant or property operated by others shall be the amount certified as the cost of such property
    additions in the independent public accountant’s certificate provided for in subdivision (b) of paragraph (5) of this
    Section 26;	 	1st  Supp Ind
	 	 	 
	(c) as 
    to each of the gross property additions described in the certificate, the fair value of such property additions as have not
    been retired, which fair value, as to property additions constitution plant or property operated by others, shall be the
    fair     value thereof as certified in the independent engineer’s certificate provided for in subdivision (a) of
    paragraph (5) of this Section 26;	 	1st  Supp Ind

    	 

    	

    

	66	 	 
	 	 	 
	value, then stating the fair value, which fair value, as to property
    additions     constituting plant or property operated by others, shall be the fair value thereof as certified in the
    independent engineer’s     certificate provided for in subdivision (a) of paragraph (5) of this Section
    26;	 	 
	 	 	 
	(d) the amount of such gross property
    additions;	 	 
	 	 	 
	(e) which, if any, of such gross
    property     additions, at the time of acquisition thereof, were part of property additions which constituted plant or
    property operated     by others;	 	 
	 	 	 
	(f) the retirements, described in
    reasonable     detail, during the period covered by the certificate;	 	 
	 	 	 
	(g) the amount of net property
    additions,     if any, during the period covered by such certificate;	 	 
	 	 	 
	(h) the amount of net property
    additions     as of the date of termination of the period covered by the certificate;	 	 
	 	 	 
	(i) the amount of unfunded net property
    additions     as of the date of the certificate and the computation thereof in the manner provided by Section 7
    hereof;	 	 
	 	 	 
	(j) the amount of unfunded net property
    additions, if any, made the basis for the application of which the certificate is a part; and	 	 
	 	 	 
	(k) the amount of unfunded net property
    additions, if any, after the granting of such application.	 	 
	 	 	 
	Such certificate shall also state
    the amount of the net depreciation accruals as of the date of the certificate and the computation thereof in the manner
    provided in Section 5A hereof.	 	1st Supp Ind
	 	 	 
	Such certificate shall state that the properties
    described therein as property additions are or, concurrently with the granting of the application, will become property additions
    as defined in Article I hereof; that no portion thereof has been included in any other certificate filed with the Trustee
    complying with the requirements of this paragraph (3) of this Section 26; that the items of property described in such certificate
    as property additions are desirable in the	 	 

    	 

    	

    

	67	 	 
	 	 	 
	conduct of the business of
    the Company, and are not subject to any prior lien, or that a portion thereof (which portion shall be specified and described)
    is subject to a prior lien or liens (the amount of prior lien bonds secured by and the nature of which prior liens shall also
    be specified and described), and that the provisions of Section 38 were complied with in acquiring such property; that since
    the last day of the period covered by such certificate the Company has not made retirements in excess of the sum of the amount
    certified pursuant to subdivision (k) of this paragraph (3) of this Section 26 and the amount of the gross property additions
    made since the date of such certificate; and that no portion of the cost of the property additions described in such certificate
    should properly have been charged, and that no portion has been charged, to maintenance or to any other expense account. Property
    additions and retirements shall be described for the purposes of such certificate by stating the descriptive name or title
    of the account or accounts (and subdivisions thereof applicable thereto) under or pursuant to any system of accounting with
    which the Company is compelled to comply by any provision of law or, if the Company is not subject to any such requirement,
    any standard system of accounting in general use by companies doing a similar business, to which the cost of such property
    additions has been charged or allocated or to which such retirements have been credited or allocated, except that any parcels
    of real estate or any property additions consisting of plant or property operated by others shall be briefly and separately
    described.	 	 
	 	 	 
	(4) An accountant’s certificate
certifying to the correctness of the amount certified as retirements pursuant to subdivision (f) of paragraph (3) of this Section
26 and of the amount certified as the cost of each of the gross property additions described pursuant to subdivision (b) of paragraph
(3) of this Section 26, and of the amount of net depreciation accruals certified  pursuant to paraqraph (3) of
this Section 26.	 	 

    	 

    	

    

	68	 	 
	 	 	 
	(5) In case any property
    described     as property additions is shown by the engineer’s certificate provided for in paragraph (3) of this
    Section 26 to consist     of plant or property operated by others, there shall be furnished to the Trustee certificates,
    dated within ninety (90) days     of the date of the engineer’s certificate provided for in paragraph (3) of this
    Section 26, as follows:	 	 
	 	 	 
	(a) an independent engineer’s
    certificate     which shall contain a statement of the signer’s opinion of the fair value of each item of property
    described as property     additions referred to in subdivision (e) of the engineer’s certificate provided for in
    paragraph (3) of this Section     26, and of any other plant or property operated by others the subjection of which to the
    lien of this Indenture has, since     the commencement of the then current calendar year, been made the basis for the release
    of property or securities subject     to the lien of this Indenture and as to which an independent engineer’s
    certificate has not previously been furnished,     a brief statement of the considerations governing the signer’s
    determination of such fair value, a brief statement of     the condition, serviceability and general location of such
    properties described as property additions, a statement of the     signer’s opinion as to the fair value of the other
    property, tangible and intangible, acquired as a part of the transaction     by which such properties described as property
    additions were acquired; and a statement that such properties described as     property additions are or, concurrently with
    the granting of the application, will become property additions as defined in     Section 4 hereof; and	 	 
	 	 	 
	(b) an independent public
    accountant’s     certificate stating in the signer’s opinion the cost to the Company of each of the properties
    described as property     additions referred to in the independent engineer’s certificate provided for in subdivision
    (a) of this paragraph (5).	 	 

    	 

    	

    

	69	 	 
	 	 	 
	(6)A
        net earnings certificate dated as of the date of the granting of the application, showing the earnings of the Company
        to be as required by Section 25 hereof.

	 	 
	 	 	 
	(7)An
        opinion of counsel specifying the instruments of conveyance, assignment and transfer necessary to vest in the Trustee,
        to hold as part of the mortgaged and pledged property hereunder, all the right, title and interest of the Company in and
        to the property described as property additions in the engineer’s certificate provided for in paragraph (3) of this
        Section 26 (which has not been retired), or stating that no such instruments are necessary for such purpose, and also
        stating the signer’s opinion (a) that this Indenture is or, upon the delivery of the instruments of conveyance,
        assignment or transfer mentioned in said opinion, will be a lien on such property, and that the Company has or, upon delivery
        of such instruments, will have title to such property and to the property described in the granting clauses of this Indenture
        and each supplemental indenture and in each engineer’s certificate filed with the Trustee complying with the requirements
        of paragraph (3) of this Section 26 and in each maintenance certificate, which is still owned by the Company, subject
        to no lien, charge or encumbrance thereon prior to the lien of this Indenture, except the excepted encumbrances as defined
        in Section 2 hereof and the prior liens, if any, referred to in the accompanying engineer’s certificate, and that,
        upon the recordation or filing, in the manner stated in such opinion, of the instruments so specified, if any, and, upon
        the recordation or filing of this Indenture or any supplemental indenture in the manner stated in such opinion, or without
        any such recordation or filing, if such opinion shall so state, no further recording or re-recording or filing or re-filing
        (except such as may be referred to in such opinion) of this Indenture or any other instrument is required to maintain
        the lien of this Indenture upon such property as against all creditors and subsequent purchasers and encumbrancers, subject
        to said excepted encumbrances and prior

	 	 

    	 

    	

    

	70	 	 
	 	 	 
	liens;
        (b) that the total amount of cash required to be deposited to provide for the payment, redemption or cancellation of prior
        lien bonds secured by such prior liens is the amount specified in such opinion and that it has been or, concurrently with
        the granting of the application, will be deposited in trust with the Trustee hereunder, or with the trustee or other holder
        of the mortgage or other lien securing such prior lien bonds, together with an irrevocable authority and direction by
        the instruments specified in said opinion for the purpose of paying, redeeming, discharging and cancelling such prior
        lien bonds and that upon such deposit such property will cease to be subject to any prior lien; (c) that the Company has
        corporate authority and all necessary permission from governmental authorities to own and operate the property described
        in such certificate; (d) that the determination of the cost of such property as stated in the certificates furnished pursuant
        to paragraphs (3), (4) and (5) of this Section 26 was not inconsistent with the order, if any, of each governmental authority
        approving the transaction or transactions by which such property was acquired or authorizing the ownership or operation
        thereof; (e) that the issue of the bonds, the authentication and delivery of which are being applied for, has been duly
        authorized by the Company and by any and all governmental authorities the consent of which is requisite to the legal issue
        of such bonds, or that no consent of any governmental authority is requisite to the legal issue of such bonds, and that
        all of the requirements of the Indenture and of law for the due and lawful issue, authentication and delivery of said
        bonds have been duly complied with and that said bonds when issued, authenticated and delivered will be the valid and
        legal obligations of the Company entitled to all the benefits and security of this Indenture; (f) that all recording and
        other taxes required by law to be paid in connection with the issuance of such bonds or for the effectiveness of the lien
        of this Indenture as security for such bonds have been paid or specifying what
	 	 

    	 

    	

    

	71	 	 
	 	 	 
	provision for the payment thereof
                           has been made (which provision shall he satisfactory to the Trustee), or that no tax is required by
                           law to be paid. Unless such opinion shall show that no consent or approval of any governmental authority
                           is requisite to the legal issue of the bonds, the authentication and delivery of which are being applied
                           for, or to the acquisition, ownership or operation of the property described in the application, it
                           shall specify any officially authenticated certificates, or other documents, by which such consent
                           or approval is or may be evidenced.	 	 
	 	 	 
	(8) The instruments of conveyance, assignment and
        transfer, if any, and the officially authenticated certificates or other documents (or copies thereof, certified by the
        Secretary or an Assistant Secretary of the Company, if the originals are not to be delivered to the Trustee), if any,
        described in the opinion of counsel provided for in paragraph (7) above.	 	 
	 	 	 
	(9) The cash, if any, specified in the opinion of
        counsel (or, in lieu of such cash, a certificate of the trustee or other holder of the prior lien with whom the deposit
        has been made to the effect that such deposit in trust has been made), together with the instrument or instruments, if
        any, specified in said opinion of counsel, authorizing and directing the use of said money in accordance therewith (or,
        if said money has been deposited in trust with the trustee or other holder of the prior lien, a copy of such instrument
        or instruments, if any, certified by the Secretary or Assistant Secretary of the Company).	 	 
	 	 	 
	ARTICLE V.		 
	 	 	 
	Issuance of Bonds Upon Retirement of Bonds 

Previously
    Outstanding Hereunder.		 
	 	 	 
	Section 27.
    Subject to the limitation as to aggregate principal amount set forth in Section 10 hereof, bonds in addition to those provided
    for in Articles III and IV hereof and of any one or	 	 

    	 

    	

    

	72	 	 
	 	 	 
	more series
    may, from time to time, be executed by the Company and delivered to the Trustee, and shall be authenticated by the Trustee
    and delivered from time to time to, or on the order of, the Company upon the basis of bonds authenticated and delivered hereunder
    which have been paid, retired, redeemed or cancelled or surrendered to the Trustee for cancellation or for the payment of
    which at maturity, together with the interest due or to become due thereon, or for the redemption of which, cash has been
    deposited with the Trustee irrevocably in trust for such purpose, but only in accordance with and subject to the conditions,
    provisions and limitations set forth in the next succeeding sections of this Article V.	 	 
	 	 	 
	Section 28. Bonds
    of any one or more series shall be authenticated and delivered under the provisions of this Article V, subject to the conditions
    of Sections 29 and 30 hereof, in principal
    amount equivalent to the principal amount of bonds authenticated and delivered hereunder which have been paid, retired, redeemed,
    cancelled or surrendered for cancellation (except when cancelled pursuant to the provisions of Section 30
    or 40 hereof, or pursuant to the provisions of Section 60
    or paragraph (2) of Section 62 hereof
    to obtain the release of property or the withdrawal of cash, or through use of cash pursuant to the provisions of paragraph
    (3) or (4) of Section 62
    hereof) or for the payment at maturity or redemption of which, with the interest due or to become due thereon, cash
    is then held, in trust, by the Trustee. Such authentication shall be made upon the request of the Company evidenced by a resolution
    such as is described in paragraph (l) of Section 26 hereof
    and upon receipt by the Trustee of a treasurer’s certificate and an opinion of counsel such as are described respectively
    in paragraph (2) of Section 26 hereof and
    paragraph (4) of Section 31 hereof (together
    with the certificates and other documents and instruments, if any, described in such opinion of counsel) and of a further
    treasurer’s certificate stating	 	 
	 	 	 
	(a) the aggregate principal amount of bonds
    authenticated     and delivered hereunder which have been paid, retired, re-	 	 

    	 

    	

    

	73	 	 
	 	 	 
	deemed,
                           cancelled or surrendered to the Trustee for cancellation or for the payment or redemption of which
                           cash is then held in trust by the Trustee and made the basis of such application;

	 	 
	 	 
	(b)that such bonds have
        not been cancelled pursuant to the provisions of Section 30 or 40 hereof, or pursuant to the provisions of Section 60
        or paragraph (2) of Section 62 hereof to obtain the release of property or the withdrawal of cash, or through the use
        of cash pursuant to the provisions of paragraph (3) or (4) of Section 62 hereof ; and

	 	 
	 	 	 
	(c)the aggregate principal amount of bonds
        authenticated and delivered hereunder but never bona fide issued by the Company which have been cancelled and which
        form part of the bonds made the basis of such application.	 	 
	 	 	 
	Section 29. (a)
    In case there shall have been delivered to the Trustee pursuant to any provision of this Indenture, subsequent to such payment,
    retirement, redemption, cancellation or surrender for cancellation of bonds or to the deposit of money for such purpose, a
    net earnings certificate in which the annual interest charges on such bonds shall not have been included, or (b) in case bonds
    authenticated and delivered by the Trustee but never bona fide issued by the Company are being made the basis of the
    issuance of bonds under this Article V, bearing an interest rate higher than that borne by such bonds made the basis for the
    issuance thereof, the Company covenants that it will not execute or request the Trustee to authenticate and deliver and the
    Trustee shall not authenticate and deliver additional bonds pursuant to the provisions of this Article V upon the basis of
    any of the bonds falling within the classes described in clauses (a) and (b) of this Section 29, unless the Trustee shall
    also have received a net earnings certificate dated as of the date of the granting of the application, showing the earnings
    of the Company to be as required by Section 25 hereof. Bonds issued merely by way of pledge shall not be deemed to have been
    issued for the purposes of this Section 29.	 	 

    	 

    	

    

	74	 	 
	 	 	 
	Section
        30. Bonds made the basis of the issuance of bonds pursuant to the provisions of this Article V shall be cancelled
        and cremated, and shall not thereafter be made the basis for the authentication of bonds, the withdrawal of cash or
        the release of property, or be used to satisfy a maintenance deficit, under any of the provisions of this Indenture.	 	 
	 	 	 
	ARTICLE VI.	 	 
	 	 	 
	Issuance
        of Bonds Upon Deposit of Cash With Trustee.	

         
	 
	 	 	 
	Section
        31. Subject to the limitation as to aggregate principal amount set forth in Section 10 hereof, the Trustee shall
        from time to time upon the request of the Company authenticate and deliver bonds upon the deposit by the Company with
        the Trustee for such purpose of an amount of cash equal to the aggregate principal amount of the bonds so requested to
        be authenticated and delivered but only after the Trustee shall have received:

	 	 
	 	 	 
	(1)a
        resolution such as is described in paragraph (1) of Section 26 hereof;	 	 
	 	 	 
	(2)a
        treasurer’s certificate such as is described in paragraph (2) of Section 26 hereof;	 	 
	 	 	 
	(3)a
        net earnings certificate dated as of the date of the granting of the application, showing the earnings of the Company
        to be as required by Section 25 hereof;	 	 
	 	 	 
	(4)an opinion of counsel to the effect that (i) the property described
    in the granting clauses of this Indenture and each supplemental indenture and in each engineer’s certificate filed with the
    Trustee complying with the requirements of paragraph (3) of Section 26 hereof and in each maintenance certificate, which is
    still owned by the Company, is subject to the lien of the Indenture and to no prior lien or only to the prior lien or liens
    specified in such opinion, that the total amount of cash required to be deposited to provide for the payment, redemption or
    cancellation of prior lien bonds se-	 	 

    	 

    	

    

	75	 	 
	 	 	 
	cured by
                           such prior lien or liens has been or, concurrently with the granting of the application, will be deposited
                           in trust with the Trustee hereunder or with the trustee or other holder of such prior lien or liens,
                           together with irrevocable authority and direction by the instruments specified in said opinion for
                           the purpose of paying, redeeming and cancelling such prior lien bonds, (ii) the issue of the bonds,
                           the authentication and delivery of which are requested in such resolution, has been duly authorized
                           by the Company and by any and all governmental authorities the consent of which is requisite to the
                           legal issue of such bonds or that no consent of any governmental authorities is requisite -to the legal
                           issue of such bonds, and (iii) all of the requirements of the Indenture and of law for the due and
                           lawful issue, authentication and delivery of said bonds have been duly complied with and said bonds
                           when issued, authenticated and delivered will be the valid and legal obligations of the Company entitled
                           to all the benefits and security of this Indenture. Unless such opinion shall show that no consent
                           of any governmental authorities is requisite to the legal issue of the bonds, the authentication and
                           delivery of which are requested in such resolution, it shall specify any officially authenticated certificates,
                           and other documents, by which such consent is or may be evidenced; and
	 	 
	 	 	 
	(5)the officially authenticated
        certificates, and the other documents and instruments (or copies thereof certified by the Secretary or an Assistant Secretary
        of the Company, if the originals are not to be delivered to the Trustee), if any, described in the opinion of counsel
        provided for in paragraph (4)of this Section 31.

        	 	 
	 	 	 
	Section
        32. All cash deposited with the Trustee under the provisions of Section 31 hereof shall be held in trust by the
        Trustee as a part of the mortgaged and pledged property, but whenever the Company shall become entitled to the authentication
        and delivery of bonds under the provisions of Article IV hereof, the
	 	 

    	 

    	

    

	76	 	 
	 	 	 
	Trustee,
                           upon the application of the Company, evidenced by a resolution, shall pay over to the Company or upon
                           its order, in lieu of each bond or fraction thereof to the delivery of which the Company may then be
                           so entitled, a sum in cash equal to the principal amount of such bond or fraction thereof; provided,
                           however, that, for the purpose of withdrawing cash pursuant to the provisions of this Section 32, it
                           shall in no case be necessary for the Company to deliver to the Trustee the resolution and certificate
                           required by paragraphs (1) and (6) of Section 26 hereof, and such parts of the opinion described in
                           paragraph (7) of said Section 26 as relate solely to the authorization of the issuance of bonds by
                           governmental authorities and by the Company. Such opinion shall state that all of the requirements
                           of the Indenture for the payment to the Company of said cash have been duly complied with.
        	 	 
	 	 	 
	Section
        33. If at any time the Company shall so direct, any sums deposited with the Trustee under the provisions of Section
        31 hereof may be withdrawn, used or applied in the manner and for the purposes and subject to the conditions provided
        in paragraph (2), (3) or (4) of Section 62 hereof.
         
	 	 
	ARTICLE VII.	

         
	 
	 	 	 
	Particular Covenants of the Company.	 	 
	 	 	 
	The Company hereby covenants as follows:	 	 
	 	 	 
	Section
        34. That it is lawfully seized and possessed of the mortgaged and pledged property; that it will maintain and preserve
        the lien of this Indenture so long as any of the bonds issued hereunder are outstanding; that it has good right and lawful
        authority to mortgage and pledge the mortgaged and pledged property, as provided in and by this Indenture; that said mortgaged
        and pledged property is not subject to any lien prior in lien to the lien of this Indenture except (a) excepted encum-	 	 

    	 

    	

    

    	77	 	 
	 	 	 
	brances,
    and (b) the Indenture of Mortgage of Southwestern Associated Telephone Company to City National Bank and Trust Company of
    Chicago (as successor to Chicago Trust Company), Trustee, and Arthur T. Leonard (as successor to Arthur J. Baer), Co-Trustee,
    dated April 1, 1931, as supplemented, under which there have been issued and are outstanding $3,250,000 principal amount
    of First Mortgage 5% Gold Bonds, Series A, Due April 1, 1961. The Company agrees that, prior to or simultaneously with the
    authentication and delivery of any bonds hereunder, the Company, by proper resolution of its Board of Directors, will call
    for redemption on or before September 1, 1940, the $3,250,000 principal amount of said First Mortgage 5% Gold Bonds,
    Series A, Due April 1, 1961, now outstanding, and will deposit with City National Bank and Trust Company of Chicago (as
    successor to Chicago Trust Company), Trustee, funds sufficient for such redemption, in trust and accompanied by irrevocable
    instructions to apply the same to and to effect such redemption, together with irrevocable instructions to publish notice of
    such redemption in Chicago and in New York once a week for four successive weeks in accordance with the terms of said
    indenture dated April 1,1931. At the earliest date permitted by the terms of said indenture dated April 1, 1931, but in no
    event later than September 1, 1940, the Company will procure from City National Bank and Trust Company of Chicago (as
    successor to Chicago Trust Company), as Trustee under said indenture, duly executed counterparts of appropriate instruments
    evidencing the satisfaction and discharge of said indenture dated April 1, 1931, and of any indentures supplemental thereto.
    Promptly after the receipt of such instruments of satisfaction and discharge, the Company will cause the same to be recorded
    in all places in which said indenture dated April 1, 1931, or any indenture supplemental thereto, has been recorded. The
    Company further agrees that it will take or cause to be taken all such action, if any, necessary to effect such redemption
    and such discharge and satisfaction.	 	 
	 	 	 
	Section 35. That (a) it will duly and punctually pay the principal of and premium, if any, and interest on all the bonds 	 	 

    	 

    	

    

	78	 	 
	 	 	 
	outstanding hereunder, according to the terms thereof, and that it will not directly or indirectly extend or assent to the extension of the time for the payment of any coupon or claim for interest upon any of the bonds and will not directly or indirectly be a party to or approve of any arrangement for any such extension by purchasing said coupons or claims or in any other manner; (b) it will keep an office or agency, while any of the bonds issued hereunder are outstanding, at any and all places in which the principal of or interest on any of said bonds shall be payable, where notices, presentations and demands to or upon the Company in respect of such bonds or coupons as may be payable at such places or in respect of this Indenture may be given or made, and for the payment of the principal thereof and premium, if any, and interest thereon; and (c) it will from time to time give the Trustee written notice of the location of such office or offices or agency or agencies, and in case the Company shall fail to maintain such office or offices or agency or agencies or to give the Trustee written notice of the location thereof, any such notice, presentation or demand in respect of said bonds or coupons or of this Indenture may be given or made to or upon the Trustee, at its principal office, and the Company hereby authorizes such presentation and demand to be made to, and such notice to be served on, the Trustee in either of such events and the principal of and premium, if any, and interest on said bonds shall in such event be payable at said office of the Trustee.	 	 
	 	 	 
	As the coupons annexed to bonds are paid, they shall be cancelled and shall, from time to time, be delivered to the Trustee for cremation, and the Trustee shall deliver to the Company a certificate of such cremation.	 	 
	 	 	 
	If the time for the payment of any coupon or claim for interest upon any of the bonds shall be directly or indirectly extended or the extension thereof shall be assented to by the Company or the Company shall be a party to or approve of any arrangement for any such extension by purchasing said coupons or claims for interest or in any other manner, then, anything in this Indenture contained to the contrary notwithstanding, such coupon or claim	 	 

    	 

    	

    

	79	 	 
	 	 	 
	for interest so extended shall not be entitled, in case of default herein, to any benefit of or from this Indenture, except after the prior payment in full of all bonds issued and outstanding hereunder and all such coupons and claims for interest as shall not have been so extended.	 	 
	 	 	 
	Section
    36. (a) That, if it shall appoint a paying agent other than the
    Trustee, it will cause such paying agent to execute and deliver to the Trustee an instrument in which it shall agree with
    the Trustee, subject to the provisions of this Section, (1) that such paying agent shall hold in trust for the benefit of
    the bondholders all sums held by such paying agent for the payment of the principal of or interest on the bonds (and premium,
    if any); and (2) that such paying agent  shall give the Trustee notice of any default by the Company or any other
    obligor in the marking of any deposit with it for the payment of the principal of or interest on the bonds (and premium,
    if any), and of any default by the Company or any other obligor the making of any such payment.	 	18th
    Supp Ind
	 	 	 
	(b) That, if the Company acts as its own paying agent, it will, on or before each due date of each installment of principal or interest on the bonds, set aside and segregate and hold in trust for the benefit of the bondholders a sum sufficient to pay such principal or interest so becoming due on the bonds (and premium, if any) and will notify the Trustee of such action, or of any failure to take such action.	 	 
	 	 	 
	(c) Anything in this Section to the contrary notwithstanding, the Company may at any time, for the purpose of obtaining a release or satisfaction of this Indenture or for any other reason, pay or cause to be paid to the Trustee all sums held in trust by it or any paying agent as required by this Section, such sums to be held by the Trustee upon the trusts herein contained.	 	 
	 	 	 
	(d) Anything in this Section to the contrary notwithstanding, the agreement to hold sums in trust as provided in this Section is subject to the provisions of Section 85.	 	 

    	 

    	

    

	80	 	 
	 	 	 
	Section 37. That it will pay all taxes and assessments lawfully levied or assessed upon the mortgaged and pledged property, or upon any part thereof or upon any income therefrom, or upon the interest of the Trustee in the mortgaged and pledged property, when the same shall become due; that it will not suffer any lien (other than the lien of excepted encumbrances) to be hereafter created upon the mortgaged and pledged property, or any part thereof, or the income therefrom, prior to the lien of this Indenture, except any mortgage or other lien on any property hereafter acquired by the Company which may exist on the date of, or be created as a vendor’s lien or as a purchase money mortgage or trust deed in connection with, such acquisition. Within four months after the accruing of any lawful claims or demands for payment for labor, materials, supplies or other objects, which if unpaid might by law be given precedence over this Indenture as a lien or charge upon the mortgaged and pledged property or the income thereof, the Company will pay or cause to be discharged or make adequate provision to satisfy or discharge the same; provided, however, that nothing in this Section 37 contained shall require the Company to observe or conform to any requirement of governmental authority or to cause to be paid or discharged, or to make provision for, any such lien or charge, or to pay any such tax or assessment so long as the validity thereof shall be contested by it in good faith and by appropriate legal proceedings and provided that such security for the payment of such lien, charge, tax or assessment shall be given as the Trustee may require. On or before the first day of May in each year beginning with the year 1941, the Company shall file with the Trustee a certificate executed by its President or a Vice-President and its Treasurer or an Assistant Treasurer, accompanied by a concurring opinion of counsel, stating that the Company has paid all taxes, assessments, charges and other claims which, if not paid, might be held to be secured by a lien or charge prior to the lien of this Indenture, which accrued and became payable during the preceding calendar year, and stating, if any such taxes, assessments, charges or other claims have not been paid, the reason for the non-payment thereof, the status thereof at the date of such	 	 

    	 

    	

    

	81	 	 
	 	 	 
	certificate and the provision or provisions for the payment or the security for the payment thereof which the Company has made or proposes to make.	 	 
	 	 	 
	Notwithstanding
    the provisions of Section 37 of the Indenture, if the Company delivers to the Trustee the Certificate demonstrating that as
    of the end of the most recently completed calendar year, the amount of outstanding bonds is less than or equal to 15% of the
    net book value of the Property, then the reporting requirements in this Section 37 regarding an annual Tax Certificate and
    associated Opinion of Counsel in respect of such calendar year, are eliminated and replaced bv the Annual Certificate of Compliance
    Reporting as defined and described in the Thirty-Ninth Supplemental Indenture dated as of March 25, 2008.	 	39th
    Supp Ind
	 	 	 
	Section 38.
    That (a) it will not acquire any property at a cost to the Company in excess of Sixty Thousand Dollars ($60,000), which at
    the time of acquisition thereof shall be or become subject to any lien or liens prior to the lien of this Indenture, other
    than excepted encumbrances, unless at the date of acquisition of such property the principal amount of indebtedness secured
    by such lien or liens shall not exceed sixty per centum (60%) of the cost to the Company of the unfundable property so
    acquired which is of a character that might become property additions, and, if such property is plant or property operated by
    others, unless the net earnings of such property, as of a date not exceeding ninety (90) days prior to the date of the
    acquisition thereof, shall have been at least equal to earnings requirements, corresponding to those described in Section 9
    hereof, on all indebtedness secured by such prior lien or liens at the time of the acquisition of such property; provided
    that indebtedness for the payment or redemption of which the necessary funds have been deposited in trust with the trustee or
    other holder of such prior lien or liens or with the Trustee hereunder shall not be deemed to be so secured by such prior
    lien or liens for the purpose of either such computation; and, in the event of the acquisition by the Company at a cost in
    excess of Sixty Thousand Dollars ($60,000) of any plant or property operated by others subject to a lien or liens prior to
    the lien of this Indenture, the Company will file with the Trustee appropriate certificates of an independent engineer and of
    an independent public accountant and an opinion of counsel showing compliance with the provisions of this Section 38; and
    (b), subject to the provisions of Section 47, it will cause to be closed all mortgages and other liens existing at the time
    of acquisition on any property hereafter acquired by the Company and will permit no additional bonds to be issued thereunder
    and no additional indebtedness in any manner to be secured thereby,	 	 

    	 

    	

    

	82	 	 
	 	 	 
	but nothing herein contained shall prevent the issuance of bonds under any such mortgage to make such replacements of any mutilated, lost, stolen or destroyed bonds or to effect such exchanges of bonds of different denominations as may be permitted in the mortgage securing the same.	 	 
	 	 	 
	Section 39. That it will keep the mortgaged and pledged property insured against loss or damage in the manner and to the extent that property of similar character is usually insured by companies similarly situated and operating like properties, by insurance companies satisfactory to the Trustee, any loss, except as to materials and supplies and except any loss less than Ten Thousand Dollars ($10,000), to be made payable to the Trustee as its interest may appear, or to the trustee or other holder of any mortgage or other lien constituting a prior lien, if required by the terms thereof. If the Trustee shall so request, there shall be deposited with the Trustee copies of all insurance policies outstanding and in force upon the aforesaid property, or any part thereof.	 	 
	 	 	 
	At any time upon the request of the Trustee, the Company will file with the Trustee a certificate of any officer or agent of the Company containing a detailed list of the insurance then in effect upon the property of the Company on a date therein specified (which date shall be within thirty (30) days of the filing of such certificate), and said certificate of such officer or agent shall state that said insurance complies with the provisions of this Section 39. Subject to the provisions of Section 92 hereof, the Trustee shall be entitled to accept such list and certificate as satisfactory evidence of compliance by the Company with the provisions of this Section 39.	 	 
	 	 	 
	All money received by the Trustee as proceeds of any insurance against loss or damage, except payments received on account of any loss of materials or supplies or on account of any loss of less than Ten Thousand Dollars ($10,000), shall, subject to the requirements of any mortgage constituting a prior lien, be held by the Trustee as a part of the mortgaged and pledged property and,	 	 

    	 

    	

    

	83	 	 
	 	 	 
	subject
    as aforesaid, shall be paid by it to the Company, whether or not the Company shall then be in default hereunder, to reimburse
    the Company for an equal amount spent by the Company in the rebuilding or renewal of the property destroyed or damaged, upon
    receipt by the Trustee of a resolution requesting such reimbursement, a treasurer’s certificate stating the amount so
    expended and the nature of such renewal or rebuilding, and an opinion of counsel that the property so renewed
    or rebuilt is subject to the lien hereof to the same extent and with the same priority as was the property so lost or damaged,
    and an engineer’s certificate (or, in the case of plant or property operated by others, an independent
    engineer’s certificate) as to the fair value of such renewal or rebuilding.	 	
        1st
        Supp Ind

         

        1st
        Supp Ind

         

	 	 	 
	The Trustee shall pay over to the Company, by endorsement or otherwise, any payment received by it on account of any loss of materials or supplies or on account of any loss of less than Ten Thousand Dollars ($10,000) upon receipt by the Trustee of a certificate signed by the Treasurer or an Assistant Treasurer of the Company or by any duly authorized agent of the Company to the effect that such payment represents the proceeds of insurance on account of loss of materials or supplies or on account of a loss of less than Ten Thousand Dollars ($10,000). All such insurance money received by the Company shall be applied by it to the rebuilding, renewal or replacement of property or to the acquisition of additional property.	 	 
	 	 	 
	Any such money not so applied within twelve months after its receipt by the Trustee, or in respect of which notice in writing of intention to apply the same to the work of rebuilding or renewal then in progress and uncompleted shall not have been given to the Trustee by the Company within such twelve months, or which the Company shall at any time notify the Trustee is not to be so applied, shall thereafter be withdrawn, used or applied in the manner and for the purposes and subject to the conditions provided in Section 62 hereof.	 	 
	 	 	 
	In case of any loss covered by any policy of insurance, any appraisement or adjustment of such loss and settlement and judgment of indemnity therefor which may be agreed upon between the Company and the insurance company may be con-	 	 

    	 

    	

    

	84	 	 
	 	 	 
	sented to
    and accepted by the Trustee upon receipt by the Trustee of (a) an engineer’s certificate as to the amount of the loss,
    (b) a treasurer’s certificate as to the desirability of the adjustment or settlement and (c) an opinion of counsel.
    The Trustee, subject to the provisions of Section 92 hereof, shall be in no way liable or responsible for the adjustment or
    collection of any insurance in case of any loss.	 	 
	 	 	 
	Notwithstanding
    the provisions of Section 39 of the Indenture, if the Company delivers to the Trustee the Certificate demonstrating that as
    of the end of the most recently completed calendar year, the amount of outstanding bonds is less than or equal to 15% of the
    net book value of the Property, then the reporting requirement in this Section 39 regarding an Insurance Certificate, if requested
    by the Trustee at any time in respect of such calendar year, is eliminated and replaced by the Annual Certificate of Compliance
    Reporting as defined and described in the Thirty-Ninth Supplemental Indenture dated as of March 25, 2008.	 	39th Supp Ind  
	 	 	 
	Section
    40. That (a) it will at all times maintain, preserve
    and keep the mortgaged and pledged property, with the appurtenances and every part and parcel thereof, in thorough repair,
    working order and condition and equipped with suitable equipment and appliances; (b) it will make regular charges to expense
    for the establishment of a reasonably adequate reserve or reserves for depreciation and property amortization, and from time
    to time will make all needful and proper repairs, retirements, renewals and replacements thereof, so that at all times the
    value of the security for the bonds issued hereunder and the efficiency of the mortgaged and pledged property shall be fully
    preserved and maintained; (c) it will not charge to its property, plant and equipment accounts any expenditures properly chargeable
    to maintenance or repairs or to any other expense account in accordance with any system of accounting required by law to be
    followed by the Company or, in the absence of such requirement, in accordance with good accounting practice; and (d) it will
    promptly classify as retired all property that has permanently ceased to be used or useful in the Company’s business.
    Nothing herein contained shall be construed to prevent the Company from ceasing to operate any of its plants or any other
    property, if, in the judgment of the Company, it is advisable not to operate the same and the operation thereof shall not
    be essential to the maintenance and continued operation of the rest of the mortgaged and pledged property and the security
    afforded by this Indenture will not be substantially impaired by the termination of such operation.	 	 
	 	 	 
	Without in any wise limiting the
    foregoing, the Company covenants that, so long as any bonds shall be outstanding under this	 	 

    	 

    	

    

	85	 	 
	 	 	 
	Indenture, the sum of the amount applied during each calendar year commencing with the calendar year 1941 for maintenance, renewals and replacements of the mortgaged and pledged property, plus any available maintenance credit, will equal twenty-five per centum (25%) of the gross operating revenues derived by the Company from the mortgaged and pledged property during such year; or that, if in any calendar year such sum does not equal such amount, it will to the extent of the deficiency, certify  to the Trustee cash or bonds issued hereunder, or certify any available amount of net property additions reserve.	 	1st
    Supp Ind
	 	 	 
	The
    amount applied for renewals and replacements in any year shall be the cost to the Company of property additions made during
    such year to the extent such cost merely restores, on the books of the Company, an amount equivalent to (a) amounts credited
    to property account and charged to depreciation or property amortization reserve accounts on account of mortgaged and pledged
    property retired, less (b) salvage credited to such accounts. If the Company shall acquire any plant or property operated by
    others which does not constitute fundable property because it is subject to a prior lien, then all of the gross operating
    revenues derived by the Company from such property shall be included in gross operating revenues but, so long as such
    property shall be subject to such prior lien, there may be included in the amount applied for maintenance, renewals and
    replacements, such amount applied for maintenance, renewals and replacements of such property as does not exceed twenty-five
    per centum (25%) of the gross operating revenues derived by the Company from such property. In computing the amount applied
    for renewals and replacements of such property, property acquired by the Company of a character which would constitute a
    property addition, as defined in Section 4 hereof, if it were not subject to such prior lien, may be considered, for the
    purpose of such computation and for such purpose only, a property addition if such property would constitute a property
    addition, as defined in Section 4 hereof, except for the existence of such prior lien.	 	 

    	 

    	

    

	86	 	 
	 	 	 
	The term “maintenance credit” shall mean the aggregate of (a) the excess or deficiency of the amount applied in any calendar year for maintenance, renewals and replacements over or under twenty-five per centum (25%) of the gross operating revenues during such calendar year and (b) the amount of such excesses from prior years, less amounts thereof previously utilized as permitted by this Section 40.	 	 
	 	 	 
	The term “maintenance deficit” shall mean the amount by which twenty-five per centum (25%) of the gross operating revenues in any calendar year exceeds the sum of (a) the amount applied during such year for maintenance, renewals and replacements and (b) the amount of any available maintenance credit.	 	 
	 	 	 
	In furtherance of the foregoing covenants, the Company will, within five months after the close of the calendar year 1941 and of each calendar year thereafter, furnish to the Trustee a maintenance certificate setting forth separately and in reasonable detail:	 	 
	 	 	 
	(1) The amount of gross operating revenues derived by the Company from the mortgaged and pledged property during the preceding calendar year;	 	 
	 	 	 
	(2) The amounts applied during such preceding calendar year for maintenance, renewals and replacements of the mortgaged and pledged property;	 	 
	 	 	 
	(3) Any prior maintenance credit not theretofore utilized as permitted by this Section 40 and the computation thereof;	 	 
	 	 	 
	(4) The resulting maintenance credit or maintenance deficit.	 	 
	 	 	 
	The term “maintenance certificate”, as used in this Section 40 and elsewhere in this Indenture, shall mean a certificate filed by the Company with the Trustee pursuant to this Section 40, signed by the President or a Vice-President of the Company and a practicing accountant (who need not be a certified public accountant and who may be regularly in the employ of the Company and who shall be appointed by the Board of Directors and satisfactory to	 	 

    	 

    	

    

	87	 	 
	 	 	 
	the Trustee). The acceptance by the Trustee of a maintenance certificate shall be sufficient evidence that the practicing accountant signing the same is satisfactory to the Trustee within the meaning of this Section 40.	 	 
	 	 	 
	In case any maintenance certificate shows a maintenance deficit, the Company covenants that it will, concurrently with the filing of such certificate, make up such maintenance deficit by any one or more of the following methods:	 	 
	 	 	 
	depositing cash with the Trustee;	 	 
	 	 	 
	depositing
    with the Trustee bonds issued hereunder; or	 	 
	 	 	 
	certifying to the
    Trustee unfunded net property additions and/or any available
    amount of net property additions reserve (provided, however, that such net property additions reserve shall be used only
    after use     of     all     unfunded net property additions)     in an amount or amounts equal to the amount of such
    maintenance     deficit.	 	1st
    Supp Ind
	 	 	 
	For the purpose of computing the amount of any deposit or certification for the purposes of this Section 40, bonds issued hereunder and deposited shall be included at the principal amount thereof.	 	 
	 	 	 
	No unfunded net property additions shall be certified to satisfy any maintenance deficit unless there shall be delivered to the Trustee, with such certification, the applicable certificates and an opinion of counsel, and the instruments and cash, if any, described in paragraphs (3), (4), (5), (7), (8) and (9) of Section 26 hereof, exclusive of such parts of the opinion as relate solely to the authorization of the issuance of bonds by governmental authorities and by the Company, showing that the Company has unfunded net property additions equal to the amount so certified. Bonds deposited with the Trustee pursuant to this Section 40 shall be cancelled or cremated and shall not have been or thereafter be made the basis for the authentication of bonds, the withdrawal of cash or the release of property, or thereafter be used to satisfy a maintenance deficit under any of the provisions of this Indenture, and the Company shall, at the time of such deposit, furnish to the Trustee a treasurer’s certificate stating that such bonds have not been previously so used.	 	 

    	 

    	

    

	88	 	 
	 	 	 
	In
        case of the first use of the net property additions reserve, or any part: thereof, to satisfy any maintenance deficit,
        the Company shall furnish to the Trustee the certificates and an opinion of counsel and the instruments and cash, if any,
        that would have been required under the provisions of this Indenture prior to the execution and delivery of the Supplemental
        Indenture dated as of October 1, 1944, in case of a certification, for the purpose of satisfying a maintenance deficit,
        of all unfunded net property additions acquired, made or constructed prior
        to October 1, 1944. the Company shall, in each case of the use
        of net property addition reserve, or
        a part thereof, furnish to the Trustee a treasurer’s certificate showing the total original amount of the net property
        addictions reserve and the amount or amounts, if any, previously used. The amount of any balance not so previously used
        shall be available for use as hereinabove provided for satisfying any maintenance deficit for the years 1944,
        1945 and 1946.

         

        The Trustee shall
        hold any cash deposited with it under the provisions of this Section 40 as a part of the mortgaged and pledged property
        until paid out as hereinafter provided. Upon delivery to the Trustee of an application, signed by the President or a Vice-President
        of the Company, of a resolution authorizing such application, of a treasurer’s certificate such as is described
        in paragraph (2) of Section 26 hereof, and of an opinion of counsel, cash deposited under the provisions of this Section
        40 may

         

        (x) be
        withdrawn by the Company in an amount equal to the maintenance credit stated in any maintenance certificate filed with
        the Trustee subsequent to the deposit of such cash; or

         

        (y) be
        withdrawn by the Company to the extent of the amount of unfunded net property additions, but only upon receipt by the
        Trustee of the applicable certificates, opinion of counsel and the instruments and cash required by paragraphs (3), (4),
        (5), (7), (8) and (9) of Section 26 hereof, exclusive of such parts of the opinion of counsel as relate solely to the
        authorization of the issuance of bonds by governmental authorities and by the Company; or

         

        (z) be
        withdrawn by the Company or applied in accordance with the provisions of paragraph (2), (3) or (4) of Section 62 hereof.

         

        The amount of unfunded
        net property additions which has been certified to satisfy any maintenance deficit or to withdraw any cash deposited with
        the Trustee pursuant to this Section 40 may be offset, for the purpose of computing thereafter the amount of unfunded
        net property additions, in an amount equal to maintenance credits, if any, stated in maintenance certificates filed after
        such certification or to
        the principal amount of bonds issued and outstanding hereunder deposited with the Trustee for such purpose. Such
        offset shall become effective upon the filing with the Trustee of (i) a treasurer’s certificate stating the amount
        of
	 	1st
    Supp Ind

    	 

    	

    

	89	 	 
	 	 	 
	unfunded net property additions theretofore
    certified for such purposes to be offset and the manner in which such offset is to be effected and (ii) an opinion of counsel.
    If such offset is to be effected by the deposit of bonds, such treasurer’s certificate shall be accompanied by such
    bonds.	 	 
	 	 	 
	Whenever any
    maintenance credit, or any part thereof, or any part of the net property additions reserve has been utilized as herein stated,
    such credit or such reserve, as the case may be, shall be diminished by such amount for all future purposes.	 	1st
    Supp Ind
	 	 	 
	Subject to the provisions
    of Section 92 hereof, the Trustee may accept said maintenance certificate and any other documents delivered to it under this
    Section 40 as conclusive evidence of any matter or fact therein set forth, and shall not incur any liability or responsibility
    for any action taken or omitted to be taken in reliance thereon.	 	 
	 	 	 
	Notwithstanding the provisions of Section 40 of the Indenture, if the Company delivers
    to the Trustee the Certificate demonstrating that as of the end of the most recently completed calendar year, the amount of
    outstanding bonds is less than or equal to 15% of the net book value of the Property, then the reporting requirement in this
    Section 40 regarding an annual Maintenance Certificate in respect of such calendar year, is eliminated and replaced by the
    Annual Certificate of Compliance Reporting as defined and described in the Thirty-Ninth Supplemental Indenture dated as of
    March 25, 2008.	 	39th
    Supp Ind
	 	 	 
	Section
    41. That it will observe and conform to all valid requirements
    of any governmental authority relative to any of the mortgaged and pledged property, and all covenants, terms and conditions
    upon or under which any of the mortgaged and pledged property is held; that, except as herein otherwise provided or permitted,
    either expressly or by implication, it will at all times do or cause to be done all things necessary to preserve and keep
    in full force and effect its corporate existence, rights, permits and franchises, and will duly procure all renewals and extensions
    of its corporate existence and right to carry on business, if and when any such extension shall be necessary; that it will
    comply with all the valid laws of the United States of America and of any state or states thereof applicable to the Company
    and to the right of the Company to transact business under any such laws, and with all lawful ordinances, rules, orders and
    regulations of any commission, board or public authority having jurisdiction in the premises, in such form and manner as counsel
    may advise; provided that the Company may amend, surrender, abandon or otherwise terminate any right, permit, privilege or
    franchise, whenever the Company shall contemporaneously, or as a part of the same transaction, obtain or shall previously
    have obtained a	 	 

    	 

    	

    

	90	 	 
	 	 	 
	new and, in the opinion of a majority
        of the Board of Directors, an equally advantageous right, permit, privilege or franchise under which the Company may continue
        to perform the service and conduct the business theretofore performed or conducted under or by virtue of the right, permit,
        privilege or franchise, amended, surrendered, abandoned or terminated, or whenever the right, permit, privilege or franchise
        to be amended, surrendered, abandoned or terminated can no longer be profitably exercised or availed of or shall not be
        essential to the maintenance and continued use of the rest of the mortgaged and pledged property, and consequently the
        security afforded by this Indenture would not be substantially impaired.

         

        Section 42. That, if it shall fail to perform any of the covenants contained in Sections 37, 39, 41 and 43 hereof, the
        Trustee may make advances to perform the same in its behalf, but, subject to the provisions of Section 92 hereof, shall
        be under no obligation so to do unless requested so to do by the holders of not less than a majority in principal amount
        of the bonds then outstanding hereunder and furnished with funds for the purpose; and all sums so advanced shall be at
        once repayable by the Company, and shall bear interest at the rate of six per centum (6%) per annum until paid, and shall
        be secured hereby, having the benefit of the lien hereby created in priority to the indebtedness evidenced by the bonds
        and coupons issued hereunder, but no such advance shall be deemed to relieve the Company from any default hereunder.

         

        None of the provisions
        in this Indenture contained shall require the Trustee to advance or expend or risk its own funds or otherwise incur personal
        financial liability in the performance of any of its duties or in the exercise of any of its rights or powers if there
        is reasonable ground for believing that the repayment of such funds or liability is not reasonably assured to it by the
        security afforded to it by the terms of this Indenture.

         

        Section 43. (a) That it will cause this Indenture and every additional instrument which shall be executed
        pursuant to the
	 	 

    	 

    	

    

	91	 	 
	 	 	 
	terms hereof at all times to be recorded
        and filed in such manner and in such places as may be provided by law in order to preserve the lien of the same upon all
        the mortgaged and pledged property and in order fully to preserve and protect the security of the bondholders and all
        rights of the Trustee, and that it will pay any mortgage recording tax and filing fees in connection with such recording
        and filing;

         

        (b) That it will furnish
        to the Trustee

         

        (i)
        Promptly after the execution and delivery of this Indenture and of each supplemental indenture, an opinion of counsel
        either stating that in the opinion of such counsel this Indenture or such supplemental indenture has been properly recorded
        and filed so as to make effective the lien intended to be created thereby, and reciting the details of such action, or
        stating that in the opinion of such counsel no such action is necessary to make such lien effective. It shall be a compliance
        with this subsection (i) if (1) the opinion of counsel herein required to be delivered to the Trustee shall state that
        this Indenture or such supplemental indenture has been received for record or filing in each jurisdiction in which it
        is required to be recorded or filed and that, in the opinion of counsel (if such is the case), such receipt for record
        or filing makes effective the lien intended to be created by this Indenture or such supplemental indenture, and (2) such
        opinion is delivered to the Trustee within such time, following the date of the execution and delivery of this Indenture
        or such supplemental indenture, as shall be practicable having due regard to the number and distance of the jurisdictions
        in which this Indenture or such supplemental indenture is required to be recorded or filed; and

         

        (ii)
        Annually after the execution and delivery of this Indenture, an opinion of counsel either stating that in the opinion
        of such counsel such action has been taken with respect to the recording, filing, re-recording and re-filing of
	 	 

    	 

    	

    

	92	 	 
	 	 	 
	this Indenture
    and of each supplemental indenture, as is necessary to maintain the lien thereof, and reciting the details of such action,
    or stating that in the opinion of such counsel no such action is necessary to maintain such lien. Such opinion shall be
    delivered     to the Trustee within three (3) months after each anniversary of the execution and delivery of this Indenture ;
    and	 	 
	 	 	 
	(iii) Whenever the Company shall after October 1,
    1944 have acquired any land or lands, or any plant or property operated by others, or have constructed any complete telephone
    system, having, together with all other such lands, plant on property or system acquired or constructed since October 1, 1944
    or since the date of the last previous action taken under this subsection (iii), whichever shall be later, an aggregate cost
    of $200,000 or more, the Company will as promptly as practicable (A) execute and deliver to the Trustee an indenture supplemental
    hereto transferring or conveying, or confirming the transfer and conveyance of, such property, land, plant, or system in trust
    to the Trustee as part of the mortgaged and pledged property, or (B) deliver an opinion of counsel to the effect that such
    lands, plant, property or system are subject to the lien created and intended to be created by the Indenture, as supplemented,
    and that the execution and delivery of an indenture supplemental hereto is not necessary for such purpose; and	 	1st
    Supp Ind
	 	 	 
	(c) That it
    will do and perform all matters or things necessary or expedient to be done or observed by reason of any law of the United
    States of America, or of any state thereof, or any other competent authority, for the purpose of creating, performing and
    maintaining the trust hereby created for the security of the payment of said bonds and coupons thereto attached, and to perform
    all the obligations hereby imposed upon the Company.	 	 
	 	 	 
	Section 
44. That it will, upon the request of the Trustee, execute and
    deliver such further instruments and do such further acts as may be reasonably necessary or proper, in the discretion of the
    Trustee, to carry out more effectually the purposes of this Indenture, or to transfer to any new trustee or trustees the estate,
    powers, instruments or funds held in trust hereunder. It is intended that all property, both real and personal, which hereafter
    may be acquired by the Company, shall, subject to the limitations and exceptions hereinabove provided, immediately upon the
    acquisition thereof by the Company, to the extent of such acquisition and without further covenant or assignment, become and
    be subject to the lien of this Indenture as fully and completely as though now owned by the Company and specifically described
    in the granting clauses hereof, but at any and all times the Company will, upon request of the Trustee, execute such further
    instruments and do such further acts as may be reasonably necessary or proper, in the discretion of the Trustee, for the purpose
    of expressly and specifically subjecting the same to the lien of this Indenture in the manner and to the extent hereinabove
    provided.	 	 
	 	 	 
	Section
45. That it will keep its books, records and accounts in accordance
    with the valid orders, rules and regulations of each	 	 

    	 

    	

    

	93	 	 
	 	 	 
	regulatory body that may from time
        to time have jurisdiction in respect thereof.

         

        Section
46. That, whenever necessary to avoid or fill a vacancy in the office of Trustee, the Company will, in the manner
        provided in Section 108, appoint a Trustee so that there shall at all times be a Trustee hereunder which shall at all
        times be a bank or trust company having its principal office and place of business in the City of Dallas, State of Texas,
        or in the Borough of Manhattan, The City of Yew York, if there be such a bank or trust company willing and able to accept
        the trust upon reasonable or customary terms, and which shall at all times be a corporation organized and doing business
        under the laws of the United States or of any State or Territory or of the District of Columbia, with a capital and surplus
        of at least Five Million Dollars ($5,000,000), and authorized under such laws to exercise corporate trust powers and subject
        to supervision or examination by Federal, State, Territorial or District of Columbia authority.

         

        Section
        47. That it will not permit any default in the payment, when the same becomes due, of principal of or interest
        on any outstanding prior lien bonds; that it will not issue, or permit to be issued, any bonds hereunder in any manner
        other than in accordance with the provisions of this Indenture and that it will faithfully observe and perform all the
        conditions, covenants and requirements of this Indenture and of all indentures supplemental hereto and of the bonds issued
        hereunder; that, upon the cancellation and discharge of any mortgage or other lien securing prior lien bonds, it will
        cause any other prior lien bonds held by the trustee or other holder of the prior lien so cancelled or discharged to be
        deposited with the Trustee hereunder to be held under the provisions of Section 67 hereof, provided that such bonds may
        be deposited with the trustee or other holder of any other prior lien Mortgage if required by the terms of such mortgage;
        that, upon the cancellation and discharge of any mortgage or other lien securing prior lien bonds, it will cause any cash
        held by the trustee or other holder of such prior lien to be deposited with the Trustee
	 	 

    	 

    	

    

	94	 	 
	 	 	 
	hereunder, to be held and disposed
    of by it in the manner provided by Section 67 hereof; that it will not permit the amount of prior lien bonds to be increased
    by the issue of additional prior lien bonds unless (1) such prior lien bonds representing such increase shall be issued in
    exchange for outstanding prior lien bonds on the exercise by a holder or holders of such outstanding prior lien bonds of a
    right contained in the mortgage securing the same to make such exchanges, or unless (2) such prior lien bonds representing
    such increase shall be deposited with the Trustee to be held under the provisions of Section 67 hereof, or unless (3) such
    prior lien bonds representing such increase shall be deposited with the trustee or other holder of the mortgage or other lien
    securing prior lien bonds (under conditions such that no transfer of ownership or possession of such prior lien bonds representing
    such increase by the trustee or other holder of such mortgage or other lien is permissible except upon a default thereunder
    or except to the Trustee hereunder to be held subject to the provisions of Section 67 hereof or to the trustee or other holder
    of the mortgage or other lien securing the same for cancellation or to be held uncancelled under the terms of such mortgage
    or other lien under like conditions) ; that it will not apply under any provision of this Indenture for the authentication
    and delivery of any bonds or the withdraw of cash or the release of property by reason of the deposit with the Trustee
    of prior lien bonds in accordance with the provisions of this Section 47; and that it will not apply under any provisions
    of any mortgage or other lien securing prior lien bonds for the withdrawal of cash held by the trustee or other holder of
    the mortgage or other lien securing such prior lien bonds (a) on the basis of property additions or (b) on the basis of the
    deposit or cancellation of prior lien bonds representing such increase, unless such cash so withdrawn shall be deposited with
    the Trustee hereunder, to be held and disposed of by it in the manner provided by Section 67 hereof.	 	 

    	 

    	

    

	94A	 	 
	 	 	 
	THE
        FOLLOWING IS ARTICLE V FROM THE THIRTY-

        NINTH SUPPLEMENTAL INDENTURE. SCHEDULE 1

        (REFERENCED HEREIN) IS ADDED TO THE END OF

        THIS RESTATED INDENTURE.

         
	 	 
	ARTICLE
        V

         

        MODIFICATION
        OF INDENTURE COMPLIANCE REPORTING 

        REQUIREMENTS

         

        It
        is agreed that the Current Compliance Reporting is eliminated and replaced with the Streamlined Indenture Compliance Reporting,
        which is provided through the Annual Certificate of Compliance Reporting under the following terms and conditions:
	 	39th Supp Ind

 

	 	(a)	As
    of year-end of a calendar year, the outstanding bond amount is less than or equal to 15% of the net book value of the Property.	 	 
	 	 	 	 	 
	 	(b)	By March 31 of the following year, the Company submits to the Trustee the Certificate in
    the form described in Schedule 1. The Certificate demonstrates whether the requirement of this Article V(a)
    above is met as of December 31 of the previous year.	 	Schedule 1 is attached
    to end of Restated Inden.
	 	 	 	 	 
	 	(c)	As to any year with respect to which the Certificate demonstrates that the outstanding bond amount
    exceeds 15% of the net book value of the Property, all the Current Compliance Reporting will be reinstated for that reporting
    year.	 	 
	 	 	 	 	 
	 	(d)	Each year the Certificate
    will demonstrate whether the requirement of Article V (a)
    above has been met, and, therefore, what the reporting requirements are for that year.	 	 

    	 

    	

    

	95	 	 
	 	 	 
	ARTICLE VIII.	 	 
	 	 	 
	Bondholders’ Lists and Reports by the	 	 
	 	 	 
	Company and the Trustee.	 	 
	 	 	 
	Section
    48. The Company covenants and agrees that it will furnish or cause to be furnished to the Trustee between January 15
    and February 1 and between July 15 and August 1 in each year beginning with the year 1941, and at such other times with
    respect to bonds issued prior to March 1, 1968 and the Company further covenants and agrees that with respect to bonds
    issued     on and after March 1, 1968 it will furnish or cause to be furnished to the Trustee not less than 45 nor more than
    60 days     after March 1 and September 1 in each year beginning with September 1, 1968, as the Trustee may request in
    writing, a     list in such form as the Trustee may reasonably require containing all the information in the possession or
    control of the     Company or of its paying agents, as to the names and addresses of the holders of bonds obtained since the
    date as of which     the next previous list, if any, was furnished. Any such list may be dated as of a date not more than
    fifteen (15) days prior     to the time such information is furnished or caused to be furnished, and need not include
    information received after such     date.	 	18th Supp Ind
	 	 	 
	Section
    49. (a) The Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names
    and addresses of the holders of bonds (1) contained in the most recent list furnished to it as provided in Section 48, (2)
    received by it in the capacity of paying agent hereunder, and (3) filed with it within two (2) preceding years pursuant to
    the provisions of paragraph (2) of subsection (c) of Section 51. The Trustee may (1) destroy any list furnished to it as provided
    in Section 48 upon receipt of a new list so furnished; (2) destroy any information received by it as paying agent upon delivering
    to itself as Trustee, not earlier than forty-five (45) days after an interest payment date of the bonds, a list containing
    the names and addresses of the holders of bonds obtained from such information since the delivery of the next previous list,
    if any; (3) destroy any list delivered to itself as Trustee which was compiled from information received by it as paying agent
    upon the receipt of a new list so delivered; and (4) destroy any information received	 	 

    	 

    	

    

	96	 	 
	 	 	 
	by it pursuant to the provisions of
        paragraph (2) of subsection (c) of Section 51, but not until two (2) years after such information has been filed with
        it.

         

        (b) In case three
        or more holders of bonds (hereinafter referred to as “applicants”) apply in writing to the Trustee, and furnish
        to the Trustee reasonable proof that each such applicant has owned a bond for a period of at least six (6) months preceding
        the date of such application, and such application states that the applicants desire to communicate with other holders
        of bonds with respect to their rights under this Indenture or under the bonds, and is accompanied by a copy of the form
        of proxy or other communication which such applicants propose to transmit, then the Trustee shall, within five (5) business
        days after the receipt of such application, at its election, either

         

        (1)
        afford to such applicants access to the information preserved at the time by the Trustee in accordance with the provisions
        of subsection (a) of this Section; or

         

        (2)
        inform such applicants as to the approximate number of holders of bonds whose names and addresses appear in the information
        preserved at the time by the Trustee, in accordance with the provisions of subsection (a) of this Section, and as to the
        approximate cost of mailing to such bondholders the form of proxy or other communication, if any, specified in such application.

         

        If the Trustee shall elect
        not to afford to such applicants access to such information, the Trustee shall, upon the written request of such applicants,
        mail to each bondholder whose name and address appear in the information preserved at the time by the Trustee in accordance
        with the provisions of subsection (a) of this Section, a copy of the form of proxy or other communication which is specified
        in such request, with reasonable promptness after a tender to the Trustee of the material to be mailed and of payment
        or provision for the payment of the reasonable expenses of mailing, unless within five (5) days after such tender the
        Trustee shall mail to such
	 	 

    	 

    	

    

	97	 	 
	 	 	 
	applicants and file with
        the Securities and Exchange Commission, together with a copy of the material to be mailed, a written statement to the
        effect that, in the opinion of the Trustee, such mailing would be contrary to the best interests of the holders of bonds,
        or would be in violation of applicable law. Such written statement shall specify the basis of such opinion. If said Commission,
        after opportunity for a hearing upon the objections specified in the written statement so filed, shall enter an order
        refusing to sustain any of such objections or if, after the entry of an order sustaining one or more of such objections,
        said Commission shall find, after notice and opportunity for a hearing, that all the objections so sustained have been
        met and shall enter an order so declaring, the Trustee shall mail copies of such material to all such bondholders with
        reasonable promptness after the entry of such order and the renewal of such tender; otherwise the Trustee shall be relieved
        of any obligation or duty to such applicants respecting their application.

         

        (c) The
        Trustee shall not be held accountable by reason of the mailing of any material pursuant to any request made under subsection
        (b) of this Section.

         

        Section
        50. The Company covenants and agrees

         

        (1) to
        file with the Trustee within fifteen (15) days after the Company is required to file the same with the Securities and
        Exchange Commission, copies of the annual reports and of the information, documents and other reports (or copies of such
        portions of any of the foregoing as such Commission may from time to time by rules and regulations prescribe under Section
        314 (a) (1) of the Trust Indenture Act of 1939) which the Company may be required to file with such Commission pursuant
        to Section 13 or Section 15(d) of the Securities Exchange Act of 1934; or, if the Company is not required to file information,
        documents or reports pursuant to either of such sections, then to file with the Trustee and the Securities and Exchange
        Commission, in accordance with
	 	 

    	 

    	

    

	98	 	 
	 	 	 
	rules and regulations prescribed
        from time to time by said Commission under Section 314 (a) (1) of the Trust Indenture Act of 1939, such of the supplementary
        and periodic information, documents and reports which may be required pursuant to Section 13 of the Securities Exchange
        Act of 1934 in respect of a security listed and registered on a national securities exchange as may be prescribed from
        time to time in such rules and regulations;

         

        (2)
        to file with the Trustee and the Securities and Exchange Commission, in accordance with the rules and regulations
        prescribed from time to time by said Commission under Section 314 (a) (2) of the Trust Indenture Act of 1939, such additional
        information, documents and reports with respect to compliance by the Company with the conditions and covenants provided
        for in this Indenture as may be required from time to time by such rules and regulations, including, unless required to
        be filed pursuant to subsection (1) of this Section 50 or unless contrary to such rules and regulations, a copy of the
        annual audit of the Company for the preceding fiscal year, certified by an independent public accountant selected by the
        Company and approved by the Trustee, which certificate shall state that such accountant has read Sections 9, 25, 29, 31,
        35(a), 37, 38(a), 39, 40 and 45 of this Indenture and the documents, if any, filed with the Trustee pursuant thereto during
        the year covered by the audit, and that, so far as appears therefrom and from the books and records of the Company, the
        Company has, in the opinion of said independent public accountant, during the preceding fiscal year, complied with the
        covenants of the Company contained in said sections which relate to accounting matters, and that the maintenance certificate
        for the preceding calendar year was in accordance with the provisions of Section 40;

         

        (3)
        to transmit to the holders of bonds in the manner and to the extent provided in subsection (c) of Section 51, with
        respect to reports pursuant to subsection (a) of Section
	 	 

    	 

    	

    

	99	 	 
	 	 	 
	51, such summaries of any
        information, documents and reports required to be filed by the Company pursuant to subsections (1) and (2) of this Section
        50 as may be required by the rules and regulations prescribed from time to time by the Securities and Exchange Commission
        under Section 314 (a) (3)
        of the Trust Indenture Act of 1939;

         

        (4) to
        notify the Trustee promptly of each stock exchange upon which the bonds are listed.
	 	 
	 	 	 
	Notwithstanding
        the provisions of Section 50 of the Indenture, if the Company delivers to the Trustee the Certificate demonstrating that
        as of the end of the most recently completed calendar year, the amount of outstanding bonds is less than or equal to 15%
        of the net book value of the Property, then, other than as mav be required under the Trust Indenture Act of 1939 and the
        rules and regulations thereunder, the reporting requirements in this Section 50 are eliminated and replaced by the Annual
        Certificate of Compliance Reporting as defined and described in the Thirty-Ninth Supplemental Indenture dated as of March
        25, 2008.

         

        Section
        51. (a) The Trustee shall transmit, within sixty (60) days after July 1 in each year beginning with the year 1941, to the bondholders as hereinafter in this Section
        provided, a brief report dated as of such July 1 with respect to

         

        (1)
        its eligibility under Sections 46 and 91 and its qualifications under Section 104, or in lieu thereof, if to the best
        of its knowledge it has continued to be eligible and/or qualified under such Sections, a written statement to such effect;

         

        (2) the
        character and amount of any advances (and if the Trustee elects so to state, the circumstances surrounding the making
        thereof) made by the Trustee as such, which remain unpaid on the date of such report, and for the reimbursement of which
        it claims or may claim a lien or charge, prior to that of the bonds on the trust estate or on property or funds held or
        collected by it as Trustee, if such advances so remaining unpaid aggregate more than one-half of one per centum (1⁄2%)
        of the principal amount of the bonds outstanding on the date of such report;

         

        (3)
        the amount, interest rate and maturity date of all other indebtedness owing by the Company to the Trustee in its individual
        capacity on the date of such report, with a brief description of any property held as collateral security therefor, except
        an indebtedness based upon a creditor relationship arising in any manner described in paragraph (2),
        (3) ,
        (4) or (6)
        of subsection (b) of Section 105;
	 	39th
    Supp Ind

    	 

    	

    

	100	 	 
	 	 	 
	(4)
        the property and funds physically in the possession of the Trustee as such, or of a depositary for it, on the date
        of such report;

         

        (5)
        any release, or release and substitution, of property subject to the lien of this Indenture (and the consideration
        therefor, if any) which it has not previously reported, provided, however, that to the extent that the aggregate value
        as shown by the release papers of any or all of such released properties does not exceed an amount equal to one per centum
        (1%) of the principal amount of bonds then outstanding, the report need only indicate the number of such releases, the
        total value of property released as shown by the release papers, the aggregate amount of cash received and the aggregate
        value of property received in substitution therefor as shown by the release papers;

         

        (6)
        any additional issue of bonds which it has not previously reported; and

         

        (7)
        any action taken by the Trustee in the performance of its duties under this Indenture which it has not previously
        reported and which in its opinion materially affects the bonds or the trust estate, except action in respect of a default,
        notice of which has been or is to be withheld by it in accordance with the provisions of Section 71.

         

        (b) The Trustee
        shall transmit to the bondholders as hereinafter provided a brief report with respect to—

         

        (1) the
        release, or release and substitution, of property subject to the lien of this Indenture (and the consideration therefor,
        if any) unless the fair value of such property, as set forth in the certificate or opinion required by paragraph (2) of
        Section 60 or by Section 62, is less than ten per centum (10%) of the principal amount of bonds outstanding at the time
        of such release, or such release and substitution, such report to be so transmitted within ninety (90)
        days after such time; and

	 	 

    	 

    	

    

	101	 	 
	 	 	 
	(2) the character
    and amount of any advances (and if the Trustee elects so to state, the circumstances surrounding the making thereof) made
    by the Trustee as such, since the date of the last report transmitted pursuant to the provisions of subsection (a) of this
    Section 51 (or if no such report has yet been so transmitted, since the date of execution of this Indenture), for the reimbursement
    of which it claims or may claim a lien or charge prior to that of the bonds on the trust estate or on property or funds held
    or collected by it as Trustee, and which it has not previously reported pursuant to this paragraph, if such advances remaining
    unpaid at any time aggregate more than ten per centum (10%) of the principal amount of bonds outstanding at such time, such
    report to be transmitted within ninety (90) days after such time.	 	 
	 	 	 
	(c) Reports pursuant to this Section 51 shall be transmitted by
    mail—	 	 
	 	 	 
	(1) to all registered holders of bonds, as
    the names and addresses of such holders appear upon the registration books of the Company;	 	 
	 	 	 
	(2) to such holders of bonds as have, within
    two (2) years preceding such transmission, filed their names and addresses with the Trustee for that purpose; and	 	 
	 	 	 
	(3) except in the case of reports pursuant
    to subsection (b) of this Section 51, to each bondholder whose name and address is preserved at the time by the Trustee, as
    provided in subsection (a) of Section 49.	 	 
	 	 	 
	(d) A copy of each such report shall, at the time of such transmission
    to bondholders, be filed with each stock exchange upon which the bonds are listed and also with the Securities and Exchange
    Commission.	 	 
	 	 	 
	(e) If a separate or co-trustee is appointed pursuant to Section
    109, the provisions of this Section 51 which have been made specifically applicable to the Trustee shall also apply to such
    separate or co-trustee to the extent consistent with the rights, powers,	 	 

    	 

    	

    

	102	 	 
	 	 	 
	duties and obligations conferred or imposed upon such separate or co-trustee by the supplemental indenture appointing
    such separate or co-trustee. Any such separate or co-trustee may, if he so elects, furnish to the Trustee all information
    concerning such separate or co-trustee which such separate or co-trustee is required to report, and the Trustee shall transmit
    and file such information, in accordance with the provisions of this Section 51, on behalf of such separate or co-trustee;
    provided, however, that the Trustee shall not be responsible for the accuracy or completeness of any such information or for
    the failure of any such separate or co-trustee to report or to furnish any such information. In the event that any such separate
    or co-trustee shall elect to furnish information to the Trustee in accordance with the provisions of this subsection (e),
    the information required pursuant to subsection (a) of this Section 51 shall be furnished to the Trustee in writing not less
    than fifteen (15) days before the report is required to be made, and, in the case of information required pursuant to subsection
    (b) of this Section 51, such information shall be furnished to the Trustee in writing within sixty (60) days after the taking
    by any such separate or co-trustee of any action required to be reported.	 	 
	 	 	 
	(f) For the purpose of this Section, all bonds which have been authenticated and delivered and
    not returned to the Trustee and cancelled, shall be deemed to be outstanding.	 	 
	 	 	 
	ARTICLE IX.	 	 
	 	 	 
	Redemption and
    Purchase of Bonds.	 	 
	 	 	 
	Section 52. Such of the bonds
    of any series issued hereunder as are, by their terms, redeemable before maturity may, at the option of the Company, be redeemed
    at such times, in such amounts and at such prices as may be specified therein and in accordance with the provisions of the
    three next succeeding sections hereof numbered 53 to
    55, both inclusive. The exercise of such option
    shall be evidenced by a resolution, a certified copy of which shall be delivered to the Trustee.	 	 

    	 

    	

    

	103	 	 
	 	 	 
	Section
    53. In case of redemption of a part only of any series of said bonds, the Company shall notify the Trustee at least
    ten (10) days before the date on which notice of such redemption is required to be given and shall request the Trustee to
    select by lot from the distinctive numbers of the coupon bonds of such series, including coupon bonds of such series reserved
    against or assigned to fully registered bonds of such series, the particular bonds so to be redeemed, according to such method
    as the Trustee shall deem proper in its discretion.	 	 
	 	 	 
	Notice of intention to redeem (including, in case a part only of the
    bonds of any particular series are to be redeemed, the numbers of such bonds) with respect to bonds of Series A, 33⁄4
    %,
    Due June 1, 1970, shall be given by or on behalf of the Company by publication as provided in Section 20 hereof, and with
    respect to bonds of other series shall be given, by or on behalf of the Company, by publication in one daily newspaper printed
    in the English language and of general circulation in the city where the principal office of the Trustee is then located,
    and in one daily newspaper printed in the English language and of general circulation in the Borough of Manhattan, The City
    of New York, and in one daily newspaper printed in the English language and of general circulation in each of the cities in
    which the principal of any of the bonds to be redeemed shall be payable, for such period of time before the redemption date
    as may be fixed for the bonds of the particular series to be redeemed by the Indenture or by the resolutions or supplemental
    indenture establishing such series of bonds, or, if no such period be fixed, then at least once in each of four (4) successive
    calendar weeks (on any day of each such week) immediately preceding the date fixed for redemption, provided that publication
    of such notice shall not be required with respect to the redemption of bonds of any series in case all the outstanding bonds
    of said series are registered bonds and the Company or the Trustee shall have received written acknowledgement from the registered
    holders of all the then outstanding bonds of said series of written notice of the bonds to be redeemed. A copy of such notice
    shall also be mailed by or on behalf of the Company, not less than twenty (20) days before the redemption date, to each	 	(See p. 105a)

    	 

    	

    

	104	 	 
	 	 	 
	holder of any registered bond or of any coupon bond registered as to principal which is to be
    redeemed, at his last address, if any, appearing upon the registry books, but such mailing shall not be a condition precedent
    to such redemption and failure so to mail any such notice shall not affect the validity of the proceedings for the redemption
    of such bonds.	 	 
	 	 	 
	Section 54. In
    the event that the Company shall give notice of its intention to redeem any bonds so redeemable, the Company shall, and it
    hereby covenants that it will before the redemption day specified in such notice, deposit with the Trustee, irrevocably in
    trust for the purpose, a sum of money sufficient to redeem all such bonds so to be redeemed on such date or irrevocably direct
    the Trustee to apply from money held by it available to be used for the redemption of bonds, a sum of money sufficient to
    redeem such bonds. If the Company shall fail so to deposit or direct the application of the money for the redemption of said
    bonds, such failure shall constitute a default under this Indenture and the said bonds so called for redemption shall immediately
    become due and payable, and the holders of said bonds shall be entitled to receive and the Company shall be obligated to pay
    the redemption price of said bonds and thereupon and without the lapse of any period of time all the remedies provided for
    in Article XI hereof with respect to a default in the payment of principal of bonds outstanding hereunder shall be available
    to and enforceable by the Trustee.	 	 
	 	 	 
	Section 55. All
    money deposited by the Company with the Trustee under the provisions of this Article IX for the redemption of bonds or which
    the Company directs shall be applied by the Trustee to the redemption of bonds shall, subject to the provisions of Section
    85 hereof, be held in trust for account of the holders of the bonds
    so to be redeemed, and shall be paid to them respectively, upon presentation and surrender of said bonds in bearer form or
    properly endorsed for transfer, with all unmatured coupons, if any, appertaining thereto. After such redemption day, if the
    money for the redemption of the bonds to be redeemed shall have been deposited or directed to be applied as aforesaid, such
    bonds	 	(See p. 105a)

    	 

    	

    

	105	 	 
	 	 	 
	shall cease to bear interest and the coupons for interest, if any,
    maturing subsequent to that day shall be void, and such bonds and all coupons then and theretofore appertaining shall
    cease     to be entitled to the lien of this Indenture, and, as respects the Company’s liability thereon, such bonds
    and coupons     shall be deemed to have been paid; provided that if the Company shall make such money payable to the holders
    of the bonds     to be redeemed upon presentation of bonds to be redeemed and prior to the redemption date, and, if the
    redemption date is     an interest payment date, shall make the money payable as interest on such bonds on such date payable
    upon presentation of     the coupons for such interest, or if such bonds be registered bonds upon presentation of such
    registered bonds, prior to said     interest payment date, and if notice that such money will be so payable to the holders of
    such bonds and coupons is included     in the notice of redemption, and if the Company shall have irrevocably deposited or
    directed to be applied as aforesaid sufficient     money for such purpose before said prior date, then if the notice of
    redemption has been published at least once, or the     Company or the Trustee shall have received written
    acknowledgment from the registered holders of written notice of redemption     as provided in Section 53, such     bonds
    and all coupons then and theretofore appertaining thereto shall cease to be entitled     to the lien of this Indenture on
    the first date on which the Trustee is authorized     to pay such money to the holders of such bonds and coupons, and as
    respects the Company’s liability thereon,     such bonds and coupons shall be deemed to have been paid the 10th day
    after the date determined as above provided. If any     serial number or numbers shall be drawn by the Trustee at any
    selection by lot as in Section 53 hereof provided for, which     is or are endorsed upon or assigned to any registered bond
    of a denomination larger than One Thousand Dollars ($1,000), such     registered bond shall be conclusively deemed to consist
    of two or more bonds, one in the principal amount not to be redeemed,     and one or more in the principal amounts
    represented by the serial numbers endorsed upon or assigned to said registered bond     and drawn by the Trustee, being the
    part of such registered bond called for redemption. If such registered bond shall be presented     properly endorsed for
    transfer at or after the time fixed for the redemption of said bonds so drawn for redemption, or the     time when said
    redemption	 	1st Supp Ind

    	 

    	

    

	-105a-	 	 
	 	 	 
	Exceptions to the Original Indenture as supplemented and amended appear in each of the following
    Supplemental Indentures:	 	 
	 	 	 
	Seventeenth Supplemental Indenture through Thirty-Seventh Supplemental
    Indenture	 	 
	 	 	 
	The references in
    the second sentence of Section 55 of the Original Indenture as supplemented and amended to the publication of notice of redemption
    or written acknowledgment of written notice of redemption shall be deemed, with respect to the Bonds of the Series
    Due ** , to refer to the due mailing, as hereinabove provided, of notice of
    redemption. Otherwise, the provisions of Sections 53, 54 and 55 of the Original
    Indenture as supplemented and amended (exclusive of the Second paragraph
    of Section 53) shall be applicable to Bonds of the Series Due **.	 	 
	 	 	 
	[The above exceptions do not apply to the Thirty-Eighth Supplemental Indenture inasmuch as
    bonds issued under that Supplement are nonredeemable prior to maturity.]	 	 
	 	 	 
	** Year of Bond Maturity	 	 

    	 

    	

    

	106	 	 
	 	 	 
	price is first payable as hereinabove provided, the payment
    with respect to the portion thereof so to be redeemed shall be made to the registered owner upon surrender of said bond; and
    coupon bonds or registered bonds for the unpaid balance, if any, of the principal amount of the registered bond so presented
    and surrendered shall be executed by the Company and authenticated and delivered by the Trustee without charge to the bondholder
    therefor.	 	 
	 	 	 
	Section 56. At any time, upon
    delivery to the Trustee of an application signed by the President or a Vice-President of the Company, of a resolution authorizing
    such application, of a treasurer’s certificate such as is described in paragraph (2) of Section 26 hereof, and of an
    opinion of counsel, the Trustee shall, to the extent that such bonds are available for such purchase, apply all or any part
    of the cash held by it under any provision of this Indenture and applicable to the purpose, or any cash deposited with it
    by the Company for the purpose, to the purchase of bonds then outstanding hereunder of such series as the Company may designate
    at a price not exceeding the current redemption price plus accrued interest, of such bonds as shall be by their terms redeemable
    before maturity, or at not more than one hundred and ten per centum (110%) of the principal of bonds not so redeemable, plus
    accrued interest. Before making any such purchase the Trustee shall, by notice published once in each of four (4) successive
    calendar weeks (on any day of each such week) in one daily newspaper printed in the English language and of general circulation
    in the city where the principal office of the Trustee is then located, and in one daily newspaper printed in the English language
    and of general circulation in the Borough of Manhattan, The City of New York, and in one such newspaper of general circulation
    in each other city in which the principal of any of the bonds to be purchased shall be payable, advertise for written proposals
    (to be received by it on or before a date to be specified by the Trustee) to sell to it on or before a subsequent date to
    be specified by it bonds then outstanding hereunder of the series designated by the Company ; and the Trustee,	 	 

    	 

    	

    

	107	 	 
	 	 	 
	to the extent, as nearly as possible, of such funds then
    in its hands and requested by the Company to be so applied, shall purchase the bonds so offered at the lowest price or prices
    asked therefor. The Trustee may also in its discretion, and upon request of the Company so to do shall, invite offers of bonds
    for sale to it in any other usual manner. Should there be two or more proposals at the same price aggregating more than the
    amount which the Trustee has available for application, after having accepted all proposals at lower prices, the Trustee shall
    apply the amount so available, by acceptance of proposals, so as to acquire the requisite amount of bonds at the lowest cost
    possible, provided, however, that, to the extent consistent with the acquisition of such amount of bonds at the lowest cost
    possible, the Trustee shall (a), in accepting proposals, give preference to such proposals as are subject to acceptance of
    a portion thereof as against proposals not subject to such acceptance, (b), as between proposals subject to acceptance of
    a portion thereof, accept the same pro rata, and (c), as between proposals not subject to such acceptance, select by lot,
    according to such method as the Trustee shall deem proper in its discretion, the proposals to be accepted, and provided, further,
    that the Trustee shall not be required to acquire any portion of a bond in an amount less than the lowest authorized denomination
    of the bonds of such series. The Trustee shall have the right to reject any or all proposals in whole or in part if it can
    at the time of opening said proposals purchase the requisite amount of such bonds or any part thereof at a lower price than
    it could by accepting said proposals, in which event the Trustee may purchase bonds at such lower price. All offers by holders
    shall be subject to acceptance of a portion thereof unless otherwise expressed in the offers and all advertisements for written
    proposals shall so state. All expenses incurred by the Trustee or the Company in connection with such purchases and the accrued
    interest and premium, if any, on any bonds purchased shall be paid by the Company out of its general funds, and the Company
    agrees to reimburse the Trustee on demand for any funds disbursed by it for such purposes, or, if required by the Trustee,
    the funds necessary therefor shall be paid by the Company in anticipation of	 	 

    	 

    	

    

	108	 	 
	 	 	 
	such disbursements by the Trustee, and any such disbursements by the Trustee until reimbursed shall be secured by a lien on the mortgaged and pledged property and the proceeds thereof prior to the lien of the bonds and coupons issued hereunder.	 	 
	 	 	 
	Section 57. All bonds issued hereunder paid, retired or redeemed under any of the provisions of this Indenture or purchased by the Trustee as provided in Section 56 hereof and all appurtenant coupons, if any, shall forthwith be cancelled or cremated by the Trustee, and the Trustee shall thereupon at the request of the Company deliver a certificate of such cancellation or cremation to the Company.	 	 
	 	 	 
	ARTICLE X.	 	 
	 	 	 
	Possession,
    Use and Release of Mortgaged and Pledged Property.	 	 
	 	 	 
	Section 58. So long as the Company is not in default in the payment of the interest on any of the bonds then outstanding hereunder and none of the defaults specified in Section 68 hereof shall have occurred and be continuing, the Company shall be suffered and permitted to possess, use and enjoy the mortgaged and pledged property, except money and securities which are expressly required to be deposited with the Trustee, and to receive, use and dispose of the tolls, rents, revenues, issues, earnings, income, products and profits thereof, with power, in the ordinary course of business, freely and without let or hindrance on the part of the Trustee or the bondholders, to use and consume supplies, and, except as herein otherwise expressly provided to the contrary, to exercise any and all rights under choses in action and contracts and to alter and repair, and change the location of, its lines, buildings and structures.	 	 
	 	 	 
	Section 59. So long as the Company is not in default in the payment of the interest on any of the bonds then outstanding hereunder and none of the defaults specified in Section 68 hereof shall	 	 

    	 

    	

    

	109	 	 
	 	 	 
	have occurred and be continuing, the Company may at any time
    and from time to time :	 	 
	 	 	 
	(1) Without any release or consent by the Trustee,
    sell or otherwise dispose of free from the lien of this Indenture any portion of the machinery, apparatus, supplies, equipment,
    tools and implements which shall have become old, inadequate, obsolete, worn out or unfit for use, upon replacing the same
    by or substituting for the same or acquiring other machinery, equipment, tools, implements or property of a value at least
    equal to that of the property disposed of, which new property shall be subject to the lien of this Indenture free and clear
    of all prior liens (except those to which the property so disposed of was subject consistently with the terms hereof);	 	 
	 	 	 
	(2) Without any release or consent by the Trustee,
    cancel, make changes or alterations in or substitutions for any and all rights of way, grants, leases or contracts now subject,
    or which may hereafter become subject, to the lien of this Indenture; and in such event any modified, altered or substituted
    rights of way, grants, leases or contracts shall be subject to the terms of this Indenture to the same extent and in the same
    manner as those previously existing; and	 	 
	 	 	 
	(3) Withdraw any cash on deposit under this Indenture
    with the Trustee by depositing hereunder with the Trustee in substitution therefor an amount of direct and unconditional obligations
    of the United States of America, maturing in not more than two years from the date of such deposit, designated by the Company
    and not disapproved by the Trustee having a then market value at least equal to the amount of cash so withdrawn, provided,
    however, that the Company shall not be entitled to withdraw any cash deposited with or held by the Trustee for the redemption
    of bonds or for payment to the holders of bonds or coupons and claims for interest secured hereby, or for the purchase of
    bonds which the Trustee has contracted to purchase. Any obligations so deposited shall have attached thereto all unmatured
    interest coupons and shall be	 	 

    	 

    	

    

	110	 	 
	 	 	 
	held by the Trustee in all respects as would be held the cash
    for which such obligations are so substituted and such obligations shall be deemed to be such cash for the purposes of this
    Indenture. If the market value of any obligations so deposited hereunder, irrespective of any interest which may be or may
    have been collected thereon, shall, in the judgment of the Trustee, at any time be less than the amount of cash in lieu of
    which they were deposited, the Company covenants that on demand of the Trustee it will deposit hereunder with the Trustee
    cash sufficient to make up the deficiency; but the cash deposited to make up the deficiency in the market value of any obligations
    may at any time thereafter be withdrawn by the Company if at the time of withdrawal the market value of such obligations shall
    not be less than the amount of cash in lieu of which they were deposited. Any obligations so deposited shall be sold by the
    Trustee upon the written request of the Company, signed in its name by its President or one of its Vice-Presidents, at such
    prices as shall be fixed by the Company and approved by the Trustee, provided, however, that the Trustee, without any such
    request from the Company, shall be entitled, in its sole discretion and at such prices as may be approved by it, to sell at
    public or private sale any obligations so held by it in lieu of any cash which shall be payable for any purpose hereunder.
    If the Company shall not pay to the Trustee cash sufficient to make up any deficiency as hereinabove provided within ten days
    after demand by the Trustee for the payment thereof, then the Trustee shall, without the lapse of any further period of time,
    sell at public or private sale the obligations so held by it in lieu of cash with respect to which such deficiency shall exist,
    at such prices and at such times as the Trustee shall in its unrestricted discretion determine. The Trustee shall collect
    from time to time all interest upon the deposited obligations as such interest matures, and the Trustee shall, if the Company
    is not in default to the knowledge of the Trustee, pay to the Com-	 	 

    	 

    	

    

	111	 	 
	 	 	 
	pany the interest received by it on such deposited obligations,
    as and when received, and the amount, if any, by which the aggregate of the net proceeds of the sale or payment of deposited
    obligations exceeds the cash in lieu of which such obligations were deposited and hold and treat the balance as, and pay out
    or apply the same in like manner and for like purposes as, the cash in lieu of which such obligations were deposited. If the
    aggregate of the net proceeds of such sale or such payment shall be less than the amount of cash in lieu of which such obligations
    were deposited, the Company covenants that it will promptly pay to the Trustee cash in an amount equal to such deficiency.
    The deposited obligations and the proceeds of the sale or payment thereof while held by the Trustee shall be part of the mortgaged
    and pledged property.	 	 
	 	 	 
	Section 60. So long as the Company
    is not in default in the payment of the interest on any bonds then outstanding hereunder and none of the defaults specified
    in Section 68 hereof shall have occurred and be continuing, the Company may obtain the release of any of the mortgaged and
    pledged property (provided, however, that prior lien bonds deposited with the Trustee shall not be released except as provided
    in Section 67 hereof) and the Trustee shall release the same from the lien hereof upon the application of the Company and
    receipt by the Trustee of a treasurer’s certificate as required by paragraph (2) of Section 26 hereof and of	 	 
	 	 	 
	(1) a resolution describing in reasonable detail the property to be released
    and requesting such release;	 	 
	 	 	 
	(2) an engineer’s certificate, or, under the circumstances hereinafter
    in this Section 60 specified, an independent engineer’s certificate, made and dated not more than ninety (90) days prior
    to the delivery to the Trustee of such certificate, stating in substance as follows:	 	 
	 	 	 
	(a) That the Company has sold or exchanged, or con-	 	 

    	 

    	

    

	112	 	 
	 	 	 
	tracted to sell or exchange, the property
    so to be released for a stated consideration representing, in the opinion of the signer or signers, at least the then fair
    value of the property so to be released (specifying such then fair value), which consideration may be cash, bonds issued and
    theretofore outstanding hereunder, purchase money obligations secured by first mortgage lien or first trust deed upon the
    interest which the Company owned in the property to be released (subject to no liens for the payment of money except excepted
    encumbrances), outstanding prior lien bonds assumed by the Company and secured by lien prior to the lien of this Indenture
    on the property to be released, or property to be described in reasonable detail in such certificate, and, unless the property
    to be released is unfundable property, that such property will be, when acquired, property additions as defined in Section
    4 hereof; and	 	 
	 	 	 
	(b) The fair value, in the opinion of the signer or
    signers, of the purchase money obligations and of the property described pursuant to subdivision (a) of paragraph (2) of this
    Section 60 (and such certificate shall contain or be accompanied by the engineer’s report thereon, which report shall
    contain a brief statement governing the determination of such fair value, a brief statement of the condition, serviceability
    and general location of such property and, if such property includes property additions, a statement of the opinion of the
    signer or signers as to the fair value of such property additions and as to the fair value of other property, tangible and
    intangible, acquired as a part of the transaction by which such property additions were acquired and a statement that such
    property additions are property additions as defined in Section 4 hereof) ; and	 	 
	 	 	 
	(c) That the retention of the property to be released
    is no longer desirable in the conduct of the business of the	 	 

    	 

    	

    

	113	 	 
	 	 	 
	Company or that other
    property to be acquired is not less suited to the needs of the business of the Company than that to be released, and that,
    in the opinion of the signer or signers, the proposed release will not impair the security under this Indenture in contravention
    of the provisions thereof;	 	 
	 	 	 
	(3) an amount in cash equivalent to the amount, if
    any, by which the stated consideration for the property to be released, as specified in the certificate provided for in paragraph
    (2) of this Section 60, exceeds the aggregate of the following items:	 	 
	 	 	 
	(a) the principal amount of bonds issued and outstanding
    hereunder simultaneously delivered to the Trustee, and the principal amount, or fair value to the Company, whichever is less,
    of any obligations simultaneously delivered to the Trustee consisting of purchase money obligations secured by first mortgage
    or trust deed upon the interest which the Company owned in the property released, provided, however, that if the property
    to be released is fundable property, the principal amount of the purchase money obligations which may be included in the computation
    provided for in this paragraph (3) shall not exceed seventy per centum (70%) of the then fair value of the property to be
    released by which such obligations are secured as specified in the engineer’s certificate or in the independent engineer’s
    certificate, as the case may be, provided for in paragraph (2) of this Section 60, and provided, further, that the Trustee
    shall not include any such purchase money obligations in the computation provided for in this paragraph (3) if thereby the
    aggregate principal amount of all purchase money obligations received by the Trustee pursuant to this paragraph (3)
    since the commencement of the then current calendar year or at the time held by the Trustee would be ten per centum (10%)
    or more of the principal amount of all bonds at the time outstanding hereunder;	 	 

    	 

    	

    

	114	 	 
	 	 	 
	(b) the principal
    amount of outstanding prior lien bonds assumed by the Company secured by lien prior to the lien of this Indenture on the property
    to be released simultaneously delivered to the Trustee to be held subject to the provisions of Section 67 hereof and the amount
    by which any such prior lien bonds not delivered to the Trustee have been reduced by payment, or (if all property subject
    to the mortgage or other lien securing such prior lien has been or is to be released) by the assumption of the payment thereof
    by the purchaser of the property to be released, as shown by a treasurer’s certificate simultaneously delivered to the
    Trustee, accompanied by a concurring opinion of counsel; provided that the amount of any such reduction of prior liens shall
    not be included to the extent that such amount has previously been used as a basis for the release of property under any of
    the provisions of this Indenture; and	 	 
	 	 	 
	(c) the cost (to be stated in an independent public
    accountant’s certificate) or fair value to the Company (as certified in the certificate provided for in paragraph (2)
    of this Section 60), whichever is less, of any property additions or, if the property to be released is unfundable property,
    of any property concurrently acquired or to be acquired by the Company, in exchange for the property the release of which
    is then being sought;	 	 
	 	 	 
	(4) an opinion of counsel that the Company has full
    corporate authority and all necessary permission from governmental authorities (and officially authenticated copies of the
    documents, if any, evidencing such permission shall accompany such opinion) to dispose of the property to be released for
    the consideration and in the manner stated in the certificate provided for in paragraph (2) of this Section 60 and for the
    acquisition and operation of any property to be received in exchange therefor, that, if the property to be released is fundable
    property, the consideration to be received.	 	 

    	 

    	

    

	115	 	 
	 	 	 
	other than bonds outstanding hereunder,
    will be subject to the lien hereof and subject to no lien prior to the lien hereof (other than excepted encumbrances), or,
    if the property to be released is not fundable property, that the consideration to be received in exchange therefor will be
    subject to the lien hereof with the same degree of priority as the property to be released, that, in the signer’s opinion,
    the determination of the cost of property to be received in exchange, as stated in the independent public accountant’s
    certificate pursuant to subdivision (c) of paragraph (3) of this Section 60, was not inconsistent with the order, if any,
    of each governmental authority approving the transaction or transactions by which such property was to be acquired or authorizing
    the ownership or operation thereof, that, in case the Trustee is requested to release a franchise, such release will not impair
    the right of the Company to operate its remaining property, that, if all or part of the property to be released is subject
    to a prior lien and prior lien bonds are to be delivered to the Trustee as part consideration for the release, the Company
    has assumed payment of all such prior lien bonds, and that all the requirements of the Indenture for the release by the Trustee
    of said property have been duly complied with;	 	 
	 	 	 
	(5) in case any obligations secured by purchase money
    mortgage or trust deed upon the property to be released are included in the consideration for such release, an opinion of
    counsel to the effect that, in his or their opinion, such obligations are valid obligations, and that any purchase money mortgage
    or trust deed securing the same is sufficient to afford a valid first and purchase money lien upon the interest which the
    Company owned in the property to be released;	 	 
	 	 	 
	(6) all such instruments of conveyance, assignment
    and transfer as may be necessary for the purpose of effectually subjecting to the lien of this Indenture any property to be
    acquired by the Company in exchange for the property the release of which is then being sought, together with an opinion of
    counsel that such instruments are sufficient for such purpose or that no such instruments are necessary for such purpose.	 	 

    	 

    	

    

	116	 	 
	 	 	 
	The certificate required
    by paragraph (2) of this Section 60 shall be an independent engineer’s certificate if (i) the then fair value of the
    property to be released, as set forth in such certificate, is two per centum (2%) or more of the aggregate principal amount
    of all bonds at the time outstanding hereunder, or (ii) the then fair value of the property to be released and of all other
    property or securities released since the commencement of the then current calendar year, as set forth in such certificate
    and other similar certificates furnished to the Trustee in connection with the release of property or securities from the
    lien of this Indenture, is ten per centum (10%) or more of the aggregate principal amount of all bonds at the time outstanding
    hereunder, or (iii) any of the property described pursuant to subdivision (a) of paragraph (2) of this Section 60 consists
    of plant or property operated by others and the fair value of such property, as set forth in the certificate required by paragraph
    (2) of this Section 60, is not less than Twenty-five Thousand Dollars ($25,000) and not less than one per centum (1%) of the
    aggregate principal amount of all bonds at the time outstanding hereunder.	 	 
	 	 	 
	If the property to be released is subject to any
    prior     lien and if, to obtain the release of such property therefrom, the terms thereof require any consideration to be
    paid to the     trustee or other holder of any such prior lien, the engineer’s certificate above provided for in
    paragraph (2) of this     Section 60 shall so state, and the certificate of the trustee or other holder of any such prior
    lien that it has received     such consideration shall be accepted by the Trustee, to the extent of such consideration so
    received, in lieu of cash, obligations,     bonds or property required by the provisions of paragraph (3) of this Section 60
    to be delivered or certified to the Trustee     upon the release of said property.	 	 

    	 

    	

    

	116A	 	 
	 	 	 
	Notwithstanding
    any of the foregoing provisions of this Section 60, as long as (1) the Company is not in default in the payment of interest
    on any bonds then outstanding under the Indenture and none of the defaults specified in Section 68 of the Indenture shall
    have occurred and be continuing; (2) not later than the most recent March 31, the Company has delivered to the Trustee a Certificate,
    as defined in Article I of the Thirty-Ninth Supplemental Indenture, demonstrating that as of the end of the most recently
    completed calendar year, the amount of outstanding bonds is less than or equal to 15% of the net book value of the Property;
    and (3) the Company delivers to the Trustee an engineer’s certificate demonstrating that the then fair value of the
    Property to be released from the lien of the Indenture, and all other Property released since the end of the calendar year
    covered by the aforementioned Certificate, as set forth in the certificate or certificates furnished to the Trustee in connection
    with the release of property from the lien of the Indenture, is less than ten per centum (10%) of the book value of the Property,
    then the Company may, at its option, obtain the release of any of the Property in the case of the sale of Property to be released
    for cash (provided, however, that prior lien bonds deposited with the Trustee shall not be released except as provided in
    Section 67 of the Indenture) and the Trustee shall release the same from the lien hereof upon the application of the Company
    and the receipt by the Trustee of the following alternative documents in lieu of the documents provided in the preceding paragraphs
    and without delivering to the Trustee the cash proceeds from such sale (referred to herein as the “Alternative Release
    Provisions “); provided, however, that the cash proceeds from such sale shall, for all purposes of this Indenture, be
    treated as moneys withdrawn from deposit with the Trustee pursuant to the withdrawal provisions of Section 62 of the Indenture
    and the Alternative Release Certificate (described in paragraph (3) below) shall, for all purposes of the Indenture, unless
    the context otherwise requires, be deemed to be a certificate which complies with all the requirements of paragraphs (3) and
    (5) of Section 26; and provided further, however, that the Company may obtain the release of Property pursuant to the Alternative
    Release Provisions only in the event that the amounts of moneys to be treated as having been withdrawn shall be in such amounts
    as will permit the Alternative Release Certificate delivered to the Trustee as part of the application to show that there
    will exist, as of the date of such certificate, unfunded net property additions if the amount of cash to be so treated as
    having been withdrawn pursuant to such application is not included in the addition authorized by subdivision (iii) of Section
    7 hereof:	 	39th
    Supp Ind
	 	 	 
	(1)	a
    treasurer’s certificate, dated the date on which the application is made, stating that, so far as known to the signers,
    the	 	 

    	 

    	

    

	116B	 	 
	 	 	 
	 	Company is not, and upon the granting of the application
will not be, in default in the performance of any of the covenants or provisions of this Indenture;	 	39th
    Supp Ind
	 	 	 
	(2) 	a
    resolution describing in reasonable detail the Property to be released from the lien of the Indenture and requesting such
    release;	 	 
	 	 	 	 
	(3)	an
    Alternative Release Certificate certifying as to the then available unfunded net property additions computed in a manner consistent
    with paragraph (3) of Section 26 and providing details as to such calculations consistent with the form of Alternative Release
    Certificate attached as Schedule 2 to the Thirty-Ninth Supplemental Indenture dated as of March 25, 2008, and further stating
    in substance as follows:	 	Schedule 2 is attached to end of Restated Inden.
	 	 	 
	 	(a)	that
    the Company has sold, or contracted to sell, the Property so to be released from the lien of the Indenture for a stated consideration
    in cash representing, in the opinion of the signer or signers, at least the then fair value of the Property so to be released
    (specifying such then fair value);	 	 
	 	 	 
	 	(b) 	that
    the retention of the Property to be released from the lien of the Indenture is no longer desirable in the conduct of the business
    of the Company and that, in the opinion of the signer or signers, the release will not impair the security under the Indenture
    in contravention of the provisions thereof;	 	 
	 	 	 
	 	(c)
    	that the then
    fair value of the Property to be released from the lien of the Indenture, and all other Property released since the commencement
    of the then current calendar year, as set forth in the certificate or certificates furnished to the Trustee in connection
    with the release of property from the lien of the Indenture, is ten per centum (10%) of or less of the book value of the Property;
    and	 	 
	 	 	 
	 	(d)	that the net depreciation
    accruals computed in the manner provided in Section 5A of the Indenture exceed the maintenance credit computed in the manner
    provide in Section 7 of the Indenture;	 	 

    	 

    	

    

	116C	 	 
	 	 	 	 
	 	provided,
however, that if the then fair value of the Property to be released from the lien of the Indenture and of all other Property released
since the end of the calendar year covered by the aforementioned Certificate, as set forth in such Certificate and other similar
certificates furnished to the Trustee in connection with the release of Property from the lien of the Indenture, is ten per centum
(10%) or more of the aggregate principal amount of the bonds at the time outstanding, such engineer’s certificate shall be
made by an independent engineer; provided further, however, that such a certificate of an independent engineer shall not be required
in the case of a release of Property from the lien of the Indenture if the fair value thereof as set forth in the certificate
required by this paragraph is less than $25,000 or less than one per centum (1%) of the aggregate principal amount of the bonds
at the time outstanding;	 	39th
    Supp Ind
	 	 	 	 
	(4)	an accountant’s
    certificate covering the matters referred to in paragraph (4) of Section 26;	 	 
	 	 	 	 
	(5)	an opinion
of counsel covering the matters referred to in paragraph (7) of Section 26 (exclusive of such parts of the opinion as relate solely
to the authorization of the issuance of bonds by governmental authorities and the Company) and opining that the Company has full
corporate authority and all necessary permission from governmental authorities (and officially authenticated copies of the documents,
if any, evidencing such permission shall accompany such opinion) to dispose of the property to be released for the consideration
and in the manner stated in the certificate provided for in paragraph (3) above, that, in case the Trustee is requested to release
a franchise, such release will not impair the right of the Company to operate its remaining property, and that all the requirements
of the Indenture for the release by the Trustee of said Property have been duly complied with;	 	 
	 	 	 	 
	(6)	the applicable
    certificates, instruments and cash, if any, required by paragraphs (8) and (9) of Section 26 (exclusive of such parts of the
    opinion as relate solely to the authorization of the issuance of bonds by governmental authorities and by the Company).	 	 
	 	 	 	 
	Section 61. The Trustee shall whenever from time to time requested by the Company (such request to be evidenced by a	 	 

    	 

    	

    

	117	 	 
	 	 	 
	resolution), but
    without requiring compliance with any of the provisions of Section 60 hereof unless, under the provisions of said
    Section 60, the Company would then be required to furnish an independent engineer’s certificate, release from the lien
    hereof real estate not then being used in telephone operations, provided the aggregate value of such real estate so released
    without such compliance in any period of five consecutive calendar years shall not exceed the sum of Twenty-five Thousand
    Dollars ($25,000). A treasurer’s certificate as to any facts required to be known by the Trustee as a condition
    precedent to action by it under this Section 61, an engineer’s certificate as to the then fair value of the property to
    be released, stating that, in the opinion of the signer or signers, the proposed release will not impair the security under
    this Indenture in contravention of the provisions thereof, and an opinion of counsel shall, subject to the provisions of
    Section 92 hereof, fully protect the Trustee in any action taken upon the faith thereof. The Company covenants that, upon
    receipt, it will deposit with the Trustee, to be dealt with in the manner provided in Section 62 hereof, the consideration,
    if any, received by it upon the sale or other disposition of any real estate not then being used in telephone operations so
    released (unless the same shall have been paid or delivered to the trustee or other holder of a mortgage or other instrument
    constituting a prior lien in accordance with the provisions thereof and a certificate of such trustee or other holder to that
    effect shall have been furnished to the Trustee).	 	 
	 	 	 
	Section 62. So long as the Company is not in default in the payment
    of the interest on any bonds then outstanding hereunder and none of the defaults specified in Section 68 hereof shall have
    occurred and be continuing, any money on deposit with the Trustee constituting the proceeds of released property and any money
    as to which withdrawal pursuant to this Section 62 is specifically provided, may,	 	 
	 	 	 
	(1) upon the delivery to the Trustee of the applicable certificates, opinion of counsel, instruments and cash required	 	 

    	 

    	

    

	118	 	 
	 	 	 
	by paragraphs (3), (4), (5), (7), (8) and (9) of Section 26 hereof, exclusive of such parts of the opinion of counsel as relate solely to the authorization of the issuance of bonds by governmental authorities and by the Company, be withdrawn in such amount as will permit the certificate pursuant to paragraph (3) of said Section 26 delivered to the Trustee as part of the application for such withdrawal to show that there will exist, as of the date of such certificate, unfunded net property additions if the amount of cash so to be withdrawn by such application is not included in the addition authorized by subdivision (iii) of Section 7 hereof in making the computation of such unfunded net property additions; or	 	 
	 	 	 
	(2) be withdrawn from time to time by the Company in an amount equal to the principal amount of bonds issued and outstanding hereunder and concurrently deposited with the Trustee for cancellation; or	 	 
	 	 	 
	(3) upon the request of the Company, be used by the Trustee for the purchase of bonds issued hereunder in accordance with the provisions of Section 56 hereof; or	 	 
	 	 	 
	(4) upon the request of the Company, be applied by the Trustee to the payment at maturity or to the redemption of any bonds issued hereunder which are by their terms redeemable before maturity, of such series as may be designated by the Company, such redemption to be in the manner and as provided in Article IX hereof.	 	 
	 	 	 
	Money shall, from time to time, be paid out or used or applied by the Trustee pursuant to paragraphs (1), (2), (3) and (4) of this Section 62 upon receipt by the Trustee of a resolution requesting such withdrawal, of the written order of the Company, signed by its President or a Vice-President, of a treasurer’s certificate such as is described in paragraph (2) of Section 26 hereof, and of an opinion of counsel.	 	 
	 	 	 
	In the event that the Company or this Indenture shall direct the Trustee to apply any money held by it under this Article X,	 	 

    	 

    	

    

	119	 	 
	 	 	 
	or any money subject to be used or applied as in this Article X provided, to the purchase of bonds issued hereunder, the Company shall pay to the Trustee upon notice by the Trustee that it is ready to purchase, or if the Company or the Indenture shall direct the application thereof to the payment or redemption of bonds, as the case may be, then the Company shall pay to the Trustee on the date of such direction, an amount in cash, to be held by the Trustee subject to the provisions of this Article X, equal to the premiums, if any, and the accrued interest, if any, payable to the holders of the bonds to be so paid, purchased or redeemed.	 	 
	 	 	 
	Any purchase money mortgage or trust deed received in consideration of the release of any property by the Trustee, or the obligations secured by such purchase money mortgage or trust deed, may be released by the Trustee upon payment by the Company to the Trustee of the unpaid portion of such purchase money mortgage or trust deed or of the obligations thereby secured. The principal of and interest on any purchase money mortgage or trust deed, or of the obligations thereby secured, shall be collected by the Trustee as and when the same become payable. Proceeds received upon the payment of the principal of or the release of such obligations, trust deeds or mortgages may be withdrawn Pursuant to
    the provisions of this Section 62. Except when the Company shall be in default in the payment of the interest on any of
    the     bonds     at the time outstanding and except during the continuance of a default as defined in Section 68 hereof,
    the     interest received     by the Trustee on any such purchase money mortgage or trust deed, or the obligations thereby
    secured,     shall be paid over to     the Company.	 	1st
    Supp Ind
	 	 	 
	Except during the continuance of a default specified in Section 68 hereof, the Trustee may exercise, but only with the consent of the Company, and, upon the occurrence of any default specified in Section 68 hereof, the Trustee may exercise in its absolute discretion, without the consent of the Company, any and all rights of an owner with respect to such purchase money mortgages and trust deeds and the obligations thereby secured and may take any action which in its judgment may be desirable or necessary to avail itself of the benefit of the security created for such pur-	 	 

    	 

    	

    

	120	 	 
	 	 	 
	chase money mortgages, trust deeds and obligations including, but not in limitation, the extension thereof at a higher or lower rate of interest, and joining in any plan of reorganization or readjustment with respect thereto, whether voluntary or involuntary, and may accept and hold hereunder any new obligations or securities issued in exchange therefor under any such plan; but, subject to the provisions of Section 92 hereof, the Trustee shall be under no obligation to exercise any such rights unless requested so to do and reasonably indemnified by the holders of not less than a majority in principal amount of the bonds then outstanding hereunder. The Trustee shall be reimbursed by the Company upon demand for all expenses by it properly incurred by reason of any such action taken, with interest upon all such expenditures at the rate of six per centum (6%) per annum; and the amount of such expenses and interest shall, until repaid, constitute a lien upon the mortgaged and pledged property prior to the lien of the bonds and coupons issued hereunder.	 	 
	 	 	 
	Any new property acquired by exchange or purchase to take the place of any property released or in connection with the withdrawal of cash under any provision of this Article X shall forthwith and without further conveyance become subject to the lien of and be covered by this Indenture as a part of the mortgaged and pledged property; but the Company shall, if requested by the Trustee, convey the same, or cause the same to be conveyed, to the Trustee by appropriate instruments of conveyance upon the trusts and for the purposes of this Indenture.	 	 
	 	 	 
	Any bonds issued hereunder deposited with the Trustee pursuant to Section 60 hereof or to this Section 62 or purchased, paid or redeemed by the Trustee pursuant to the provisions of this Section 62 shall forthwith be cancelled or cremated and a certificate of such cancellation or cremation shall be delivered to the Company, and such bonds shall not have been or thereafter be made the basis for the authentication of bonds, the release of property or the withdrawal of cash under any provisions of this Indenture. Nothing in this paragraph shall be deemed to prohibit including such bonds in the computation of unfunded net property additions as provided in Section 7 hereof.	 	 

    	 

    	

    

	121	 	 
	 	 	 
	In the event that cash subject to withdrawal pursuant to this Section 62 (including therein any obligations in which such cash may have been invested pursuant to the provisions of Section 59 hereof) shall have remained on deposit with the Trustee under any of the provisions of this Indenture for more than two years in an aggregate amount in excess of Fifteen Thousand Dollars ($15,000), or five per centum (5%) of the aggregate principal amount of all bonds outstanding hereunder at the end of such two years, whichever shall be greater, and in respect to which cash notice in writing of intention to apply the same to a construction program then in progress and incompleted shall not have been given to the Trustee by the Company within such two years, such cash then so on deposit with the Trustee and in respect to which such notice shall not have been given shall be used to redeem, or at the option of the Company to purchase in the manner prescribed in Section 56 hereof, bonds outstanding hereunder of the series of bonds then outstanding hereunder having the earliest date of original issue.	 	 
	 	 	 
	Section
    63. Should any of the mortgaged and pledged property be taken
    by exercise of the power of eminent domain or should any governmental body or agency, at any time, exercise any right which
    it may have to purchase any part of the mortgaged and pledged property, the Trustee may release the property so taken or purchased,
    and shall be fully protected in doing so upon being furnished with a treasurer’s certificate and with an opinion of
    counsel to the effect that such property has been taken by exercise of the power of eminent domain, or purchased by a governmental
    body or agency in the exercise of a right which it had to purchase the same. The proceeds of all property so taken or purchased
    shall be paid over to the Trustee (unless the same shall have been paid or delivered to the trustee or other holder of a mortgage
    or other lien constituting a prior lien, in accordance with the provisions thereof and a certificate of such trustee or other
    holder to that effect shall have been furnished to the Trustee), and (if paid over to the Trustee hereunder) may thereafter	 	 

    	 

    	

    

	122	 	 
	 	 	 
	be withdrawn in the manner and for the purposes and subject to the conditions provided in Section 62 hereof.	 	 
	 	 	 
	Section
    64. In case the mortgaged and pledged property shall be in the
    possession of a receiver or trustee lawfully appointed by court order, the powers hereinbefore conferred upon the Company
    with respect to the sale or other disposition of the mortgaged and pledged property may be exercised by such receiver or trustee
    and any request, certificate or appointment made or signed by such receiver or trustee for such purposes shall be as effective
    as if made by the Company or its Board of Directors or any of its officers or appointees in the manner herein provided; and
    if the Trustee under this Indenture shall be in possession of the mortgaged and pledged property under any provision of this
    Indenture, then such powers may be exercised by the said Trustee in its discretion notwithstanding the Company may be in default.	 	 
	 	 	 
	Section 65. No purchaser in good faith of property purporting to have
    been released hereunder shall be bound to ascertain the authority of the Trustee to execute the release, or to inquire as
    to any facts required by the provisions hereof for the exercise of such authority; nor shall any purchaser or grantee of any
    property or rights permitted by this Article X to be sold, granted, exchanged or otherwise disposed of, be under obligation
    to ascertain or inquire into the authority of the Company to make any such sale, grant, exchange or other disposition.	 	 
	 	 	 
	Section 66. The
    Trustee shall not be required under any of the provisions of this Article X to release at the request of the Company or a
    receiver or trustee any part of the mortgaged and pledged property from the lien hereof at any time while interest on the
    bonds is due and unpaid or during the continuance of a default as defined in Section 68 hereof, but notwithstanding any such
    default and notwithstanding the existence of a default in the payment of interest on any bonds then outstanding hereunder,
    the Trustee may release from the lien hereof any part of the mortgaged and pledged property, upon compliance with the conditions,
    other than those relating to the non-existence of a default, specified in this Article X in respect thereof, if the Trustee
    in its discretion shall deem such release for the best interests of the bondholders.	 	1st
    Supp Ind

    	 

    	

    

	123	 	 
	 	 	 
	lien hereof any part of the
    mortgaged and pledged property, upon compliance with the conditions, other than those relating to the non existence of a
    default, specified in this Article X in respect thereof, if the Trustee in its discretion shall deem such release for the
    best interests of the bondholders.	 	 
	 	 	 
	Section 67. All prior lien bonds received by the Trustee shall be delivered
    to and held by the Trustee, in pledge, as part of the mortgaged and pledged property, without impairment of the lien thereof
    for the protection and further security of the bonds issued hereunder. Except during the continuance of a default specified
    in Section 68 hereof, no payment by way of principal, interest or otherwise on any of the prior lien bonds held by the Trustee
    shall be made or demanded by the Trustee and the coupons thereto appertaining as they mature shall be cancelled by the Trustee
    and delivered so cancelled to the Company, unless the Company shall, by an instrument in writing, signed by its President
    or a Vice-President and its Treasurer or an Assistant Treasurer, and delivered to the Trustee, elect, with respect to any
    of such prior lien bonds, to have such payments made and demanded, in which event the Trustee shall be entitled to receive
    all such payments. In any event, except during the continuance of a default as aforesaid, all money received by the Trustee
    on account of the interest or premium on said prior lien bonds shall be paid over by the Trustee to or upon the order of the
    Company. All money received on account of the principal of any of said prior lien bonds shall be held and disposed of by the
    Trustee in accordance with the provisions of this Section 67.	 	 
	 	 	 
	Except during the continuance of a default specified in Section 68 hereof, the Trustee, if so directed in an instrument in writing signed by the President or a Vice-President and the Treasurer or an Assistant Treasurer of the Company, and if there shall be furnished to the Trustee concurrently with such direction a treasurer’s certificate and either	 	 
	 	 	 
	(a) an opinion of counsel that the Company will be in default under the provisions of a prior lien if certain prior	 	 

    	 

    	

    

	124	 	 
	 	 	 
	lien bonds held by the Trustee hereunder subject to the provisions of this Section 67 are not surrendered by the Trustee to the trustee of the mortgage or other lien securing the same for cancellation or unless such bonds are cancelled, or	 	 
	 	 	 
	
        (b) a certificate of the trustee
        or other holder of any prior lien, that all of the bonds secured by such mortgage or lien, other than the bonds held by the Trustee
        hereunder subject to the provisions of this Section 67, or for the purchase, payment or redemption of which, together with interest
        thereon, to the date of such purchase, payment or redemption, and premium, if any, the necessary amount shall have been deposited
        with or shall then be held by the Trustee hereunder in trust with irrevocable direction so to apply the same, have been purchased
        or paid in full and retired or that money in the necessary amount shall have been deposited with or shall then be held by such
        trustee or other holder of said mortgage or lien, in trust, with irrevocable direction so to apply the same, and that upon the
        surrender of the bonds so held by the Trustee hereunder, such mortgage or lien will be released, cancelled and discharged, and
        an opinion of counsel concurring with the statements set forth in such aforesaid certificate and in addition stating that no bonds
        of any other issue secured by mortgage or other lien, junior in lien to the lien of the mortgage or other lien securing said prior
        lien bonds but prior in lien to the lien of this Indenture, are outstanding and not deposited with the Trustee hereunder as part
        of the mortgaged and pledged property, and that the cancellation of such prior lien bonds so held by the Trustee hereunder will
        not impair the security of the bonds issued hereunder,

         

        shall take such steps as counsel may advise to procure the cancellation
        of such prior lien bonds held by it and the obligations thereby evidenced to be satisfied and discharged or shall surrender such
        bonds for cancellation to the trustee or other holder of the prior lien securing the same. Upon the cancellation and discharge
        of any prior lien, there shall be delivered to the Trustee

         
	 	 

    	 

    	

    

	125	 	 
	 	 	 
	hereunder evidence satisfactory to it that the said lien has been discharged and released of record. Upon similar direction and upon delivery to the Trustee of a treasurer’s certificate and of an opinion of counsel, but without the delivery of a certificate and opinion such as are described in clause (b) of this Section 67, the Trustee shall surrender any prior lien bonds held by it in pledge hereunder to the trustee or other holder of the mortgage or lien securing the same for cancellation or to be held uncancelled, if such bonds shall have been purchased or redeemed or called for redemption out of any sinking fund or other similar device for the retirement of bonds for which provision may have been made in the mortgage or lien securing the prior lien bonds so surrendered; provided, however, that no such prior lien bonds shall be so surrendered, except for cancellation as aforesaid, until the Trustee shall have received a treasurer’s certificate and an opinion of counsel to the effect that the provisions of the mortgage or lien securing the prior lien bonds so to be surrendered are such that no transfer of ownership or possession of such prior lien bonds by the trustee or other holder of such mortgage or lien is permissible except upon default thereunder or except to the Trustee hereunder to be held subject to the provisions of this Section 67 or to the trustee or other holder of the prior lien securing other prior lien bonds for cancellation or to be held uncancelled under the terms of such mortgage or other lien under like conditions.	 	 
	 	 	 
	
        Upon the cancellation and discharge of any
        prior lien, the Company covenants that it will deliver or will cause to be delivered to the Trustee all cash, obligations and other
        securities held by the trustee or other holder of such prior lien, which cash, obligations or other securities, if the same had
        not been deposited with such trustee or other holder of such prior lien, would have been required by the terms hereof to have been
        deposited with the Trustee, to be held by it as a part of the mortgaged and pledged property.

         

        Except during the continuance of a default
        specified in Section 68 hereof, the Trustee, if so directed by an instrument in writing, signed by the President or a Vice-President
        and the Treasurer or an Assistant Treasurer of the Company, and upon delivery to the

         
	 	 

    	 

    	

    

	126	 	 
	 	 	 
	Trustee of a treasurer’s certificate, shall permit the Company to withdraw any prior lien bonds held by the Trustee upon deposit with the Trustee of an amount in cash equivalent to the principal amount of the prior lien bonds so withdrawn; provided, however, that the Company shall not be permitted to withdraw any prior lien bonds until the Trustee shall have received an opinion of counsel stating that none of the property subject to the lien securing such prior lien bonds is any longer subject to the lien of this Indenture.	 	 
	 	 	 
	Any cash deposited
    with the Trustee pursuant to the provisions of this Section 67 or held by it subject to the provisions of this Section 67 may
    be withdrawn pursuant to the provisions of Section 62 hereof.	 	 
	 	 	 
	Except during the continuance of a default specified in
    Section 68 hereof, the Trustee may exercise, but only with the consent of the Company, and upon the occurrence of any default
    specified in Section 68 hereof, the Trustee may exercise in its absolute discretion, without the consent of the Company, any
    and all rights of a bondholder with respect to the prior lien bonds then held by it and may take any action which shall in
    its judgment be desirable or necessary to avail of the security created for such prior lien bonds by the mortgages or other
    instruments securing the same, including, but not in limitation, joining in any plan of reorganization or readjustment with
    respect thereto, whether voluntary or involuntary, and may accept and hold hereunder any new obligations or securities issued
    in exchange therefor under any such plan, but, subject to the provisions of Section 92 hereof, shall be under no obligation
    to exercise any such rights unless requested so to do and reasonably indemnified by the holders of not less than a majority
    in principal amount of the bonds then outstanding hereunder. The Trustee shall be reimbursed by the Company upon demand for
    all expenses by it properly incurred by reason of any such action taken, with interest upon all such expenditures at the rate
    of six per centum (6%) per annum; and the amount of such expenses and interest shall, until repaid, constitute a lien upon
    the mortgaged and pledged property prior to the lien of the bonds and coupons issued hereunder.	 	 

    	 

    	

    

	127	 	 
	 	 	 
	ARTICLE XI.	 	 
	 	 	 
	Remedies
    in Event of Default.	 	 
	 	 	 
	Section
    68. The following events are hereby defined for all purposes of this Indenture (except where the term is otherwise
    defined for specific purposes) as “defaults”:	 	 
	 	 	 
	(a) Failure
    to pay the principal of any bond hereby secured when the same shall become due and payable, whether at maturity, as therein
    expressed, or by declaration or otherwise;	 	 
	 	 	 
	(b) Failure
    to pay interest upon any bond hereby secured for a period of sixty (60) days after such interest shall have become due and
    payable;	 	 
	 	 	 
	(c) The expiration of a period
    of ninety (90) days following:	 	 
	 	 	 
	(1) the adjudication
    of the Company as a bankrupt by any court of competent jurisdiction;	 	 
	 	 	 
	(2) the entry
    of an order approving a petition seeking reorganization of the Company under the Federal Bankruptcy Laws, or any other applicable
    law or statute of the United States of America, or any State thereof; or	 	 
	 	 	 
	(3) the appointment
    of a trustee or a receiver of all or substantially all of the property of the Company unless during such period such adjudication,
    order or appointment of a receiver or trustee shall be vacated;	 	 
	 	 	 
	(d) The filing
    by the Company of a voluntary petition in bankruptcy or the making of an assignment for the benefit of creditors; the consenting
    by the Company to the appointment of a receiver or trustee of all or any part of its property; the filing by the Company of
    a petition or answer seeking reorganization under the Federal Bankruptcy Laws, or any other applicable law or statute of the
    United States of Amer-	 	 

    	 

    	

    

	128	 	 
	 	 	 
	ica,
    or of any State thereof; or the filing by the Company of a petition to take advantage of any insolvency act;	 	 
	 	 	 
	(e) Failure
    to perform any other covenant or agreement contained herein or in any indenture supplemental hereto or in any bond secured
    hereby for a period of ninety (90) days following the mailing by the Trustee to the Company of a written demand that such
    failure be cured, such failure not having been cured in the meantime. The Trustee may, and, if requested in writing so to
    do by the holders of a majority in principal amount of the bonds then outstanding, shall make such demand.	 	 
	 	 	 
	Upon the occurrence of a default,
    and in each and every such case, the Trustee, by its agents or attorneys, may forthwith enter into and upon all or any part
    of the mortgaged and pledged property, and may exclude the Company, its agents and servants, wholly therefrom and may use,
    operate, manage and control the same, and conduct the business thereof, by superintendents, managers, receivers, agents, servants
    or attorneys, for the benefit of the holders and owners of the bonds issued hereunder, to the fullest extent authorized by
    law. Upon every such entry, the Trustee may, from time to time, at the expense of the mortgaged and pledged property and of
    the Company, maintain, restore and insure or keep insured, the tools, machinery, equipment, plants or other properties, buildings
    and structures of which possession shall be taken as aforesaid; and likewise may, from time to time, at the expense of the
    mortgaged and pledged property and of the Company, make all necessary or proper repairs, renewals, replacements, alterations,
    additions, betterments and improvements thereto and thereon, as to the Trustee may seem judicious. The Trustee, in case of
    such entry, shall have the right to manage the mortgaged and pledged property and to carry on the business and to exercise
    all the rights, privileges and franchises of the Company, either in the name of the Company or otherwise, as the Trustee shall
    deem best. In such case the Trustee shall be entitled to collect and receive all tolls, dividends, earnings, income, rents,
    issues and profits of the mortgaged and pledged property and	 	 

    	 

    	

    

	129	 	 
	 	 	 
	of every part thereof whether
    accrued at or before the time of such entry or accruing thereafter. After deducting the expenses of operating the mortgaged
    and pledged property, and of conducting the business thereof, and of all repairs, maintenance, renewals, replacements, alterations,
    additions, betterments and improvements and all payments which may be made for taxes, assessments, insurance and other proper
    charges upon the mortgaged and pledged property, or any part thereof, as well as just and reasonable compensation for its
    own services and for the services of all counsel, agents and employees by it properly engaged and employed, and all other
    expenses and liabilities incurred without negligence or bad faith on the part of the
    Trustee and disbursements made by the Trustee hereunder, the Trustee shall apply the money arising as
    aforesaid, subject to the provisions of
    Section 35 hereof, as follows:	 	1st Supp Ind
	 	 	 
	First. In
    case the principal of none of the bonds shall have become due, by declaration or otherwise, to the payment of the interest
    in default thereon in the order of the maturity of the installments of such interest, with interest thereon at the legal rate,
    such payments to be made ratably to the persons entitled thereto according to the amount due to each by the terms of the bond
    or bonds held by him ; or	 	 
	 	 	 
	Second. In
    case the principal of any of the bonds, less than the whole number outstanding, shall have become due by their terms, to the
    payment of all the interest then due on all the bonds outstanding (with interest on the overdue installments thereof at the
    legal rate) in the order of the maturity of the installments, and, if any surplus remains, toward the payment of the principal
    of the bonds then due, such payments in every instance to be made ratably to the persons entitled thereto according to the
    amounts due them for interest and principal respectively; or	 	 
	 	 	 
	Third. In
    case the principal of all the bonds shall have become due, by declaration or otherwise, to the payment of the whole amount
    then due and unpaid for either principal or interest, or for both principal and interest, upon the bonds,	 	 

    	 

    	

    

	130	 	 
	 	 	 
	with interest
    on the overdue installments of interest at the legal rate; and in case such proceeds shall be insufficient to pay in full
    the whole amount so due and unpaid, then to the payment of such principal and interest ratably, according to the aggregate
    of such principal and the accrued and unpaid interest without preference or priority of any one series over any other series
    of bonds, or of principal over interest, or of interest over principal, or of any installment of interest over any other installment
    of interest, except as to the difference, if any, in the respective rates of such interest; and	 	 
	 	 	 
	Fourth. In
    case any bonds have been called for redemption and default made in the payment of the redemption price, any balance remaining
    shall be applied to the payment of any premiums payable on such redemption with interest thereon at the legal rate; ratably
    and without preference or priority of any one series over any other.	 	 
	 	 	 
	Before making any such payment,
    the Trustee may fix a date for the distribution of such money and may require the presentation of the several bonds and coupons
    and their surrender if fully paid or for proper notation if only partly paid.	 	 
	 	 	 
	Upon payment in full, as above
    provided, of whatever sum or sums may be due for principal or interest, or both, or payable for other purposes, the mortgaged
    and pledged property and any excess money in the possession of the Trustee arising as aforesaid shall be returned to the Company,
    its successors or assigns, as though no default had occurred.	 	 
	 	 	 
	Section
     69. Upon the occurrence of a default, the Trustee may cancel all assignments or orders for the payment of interest,
    and the Trustee shall thereupon be entitled to receive and collect, for the benefit of the holders and owners of the bonds,
    all sums which may thereafter become due and payable as principal or as interest upon any bonds pledged hereunder or as interest
    which may thereafter accrue upon any money deposited with the Trustee	 	 

    	 

    	

    

	131	 	 
	 	 	 
	hereunder. The Trustee, subject
    to the provisions of Section 35 hereof, shall apply any and all money so received or collected by it in the same manner as
    hereinbefore provided in Section 68 hereof for the application of money arising from the operation of the mortgaged properties.	 	 
	 	 	 
	Upon payment in full, as above
    provided, of any sum or sums which may have been due for principal or interest, or both, or payable for other purposes and
    upon the fulfillment and performance of all other obligations of the Company in respect of which it was in default under this
    Indenture, the Company shall thereafter be entitled to receive the income from all bonds pledged hereunder (unless such bonds
    shall have been sold as in this Article XI provided) in the same manner and to the same extent as though no default had occurred.	 	 
	 	 	 
	Section
    70. In case, upon the occurrence of a default (the term “default” for the purposes of this Section being
    hereby defined to be any one or more of the events specified in subsections (a), (b), (c), (d) and (e) of Section 68 not including
    any periods of grace provided for in said subsections), and at any time during the continuance of such default, there shall
    be any existing judgment against the Company unsatisfied and unsecured by bond on appeal, or upon the filing of a bill in
    equity, or upon other commencement of judicial proceedings by the Trustee to enforce any right under this Indenture, the Trustee
    shall be entitled forthwith to exercise the right of entry herein conferred, without awaiting the prescribed period, if any,
    and also to exercise and have any and all other rights, powers and remedies herein conferred and provided to be exercised
    by the Trustee upon the occurrence of a default as hereinbefore provided; and, as a matter of right, the Trustee shall thereupon
    be entitled to the appointment of a receiver of all the mortgaged and pledged property and of the earnings, income, rents,
    issues and profits thereof, whether accruing before, at or after the date of appointment or qualification thereof, with such
    powers as the court making such appointment may confer; but, notwithstanding	 	 

    	 

    	

    

	132	 	 
	 	 	 
	the appointment of any receiver
    or trustee in bankruptcy or in reorganization proceedings, the Trustee shall be entitled to continue to retain possession
    and control of any stocks, bonds or other securities pledged hereunder or cash on deposit with the Trustee under this Indenture.	 	 
	 	 	 
	Section 71.
    The Trustee shall, within ninety (90) days after the occurrence thereof, give to the bondholders, in the manner and to the
    extent provided in subsection (c) of Section 51, notice of all defaults known to the Trustee, unless such defaults shall
    have     been cured before the giving of such notice (the term “defaults” for the purposes of this Section
    being     hereby defined to be the events specified in subsections (a), (b), (c), (d) and (e) of Section 68 not including
    any     periods     of grace provided for in said subsections and irrespective of the making of the written demand
    provided for in     subsection     (e) of said Section 68); provided that, except in the case of default in the payment
    of     the principal of or     interest on     any of the bonds, the Trustee shall be protected in withholding such notice
    if and so long as the board of     directors, the     executive committee, or a trust     committee of directors
    and/or     responsible     officers     of     the     Trustee in good faith     determine that the withholding of such
    notice is     in the interests     of the     bondholders.	 	18th Supp Ind
	 	 	 
	Section
    72. Upon the occurrence of a default or upon the happening of any event described in Section 70 hereof, the Trustee
    or the holders of not less than twenty per centum (20%) in aggregate principal amount of all the bonds then outstanding, regardless
    of series or maturity, may, by notice in writing mailed or delivered to the Company, declare the principal of all the bonds
    then outstanding to be due and payable immediately; and upon any such declaration the same shall become and be immediately
    due and payable, anything in this Indenture or in said bonds contained to the contrary notwithstanding. This provision is,
    however, subject to the condition that if, at any time after the principal of said bonds shall have been declared due and
    payable, all arrears of interest upon such bonds (with interest on overdue installments of interest at the same rates borne
    by the re-	 	 

    	 

    	

    

	133	 	 
	 	 	 
	spective bonds) and all expenses
    and charges of the Trustee be paid by the Company, or be collected out of the mortgaged and pledged property before any sale
    thereof shall have been made, and every default in the observance or performance of any covenant or condition in the bonds
    or in this Indenture contained shall have been made good or secured to the satisfaction of the Trustee, or provision deemed
    by the Trustee to be adequate shall have been made therefor, then, and in each and every such case, the holders of a majority
    in aggregate principal amount of the bonds then outstanding, by written notice to the Company and to the Trustee, may waive
    such default and its consequences; but no such waiver shall extend to or affect any subsequent default or impair any right
    consequent thereon.	 	 
	 	 	 
	Section
    73. Upon the occurrence of a default, the Trustee shall, in its discretion, forthwith and without the lapse of any
    further period of time be entitled with or without entry, by its agents or attorneys, to sell, in the manner provided in Section
    74 hereof, all and singular the mortgaged and pledged property, including all shares of stock and all bonds or other securities
    then pledged hereunder, or, in its discretion, the Trustee may forthwith proceed to protect and enforce its rights and the
    rights of the holders of the bonds under this Indenture by a suit or suits in equity or at law, for the specific performance
    of any covenant or agreement contained herein, or in aid of the execution of any power herein granted, or for the foreclosure
    of this Indenture, either for interest or for principal, or for both, or for the enforcement of any other appropriate legal
    or equitable remedy, as the Trustee, being advised by counsel, shall deem most effectual in support of any of its rights or
    duties hereunder. The court may appoint a special master to make any sale under or by virtue of the power of sale herein contained,
    or by virtue of judicial proceedings, or of any judgment or decree of foreclosure.	 	 
	 	 	 
	Section
    74. In the event of any sale under or by virtue of the power of sale herein contained, or by virtue of judicial pro-	 	 

    	 

    	

    

	134	 	 
	 	 	 
	ceedings, or by virtue of any
    judgment or decree of foreclosure and sale thereunder, the whole of the mortgaged and pledged property, including, if the
    Trustee deems desirable, all stocks, bonds and other securities which may be pledged under this Indenture, shall be sold in
    one parcel, as an entirety, unless such sale as an entirety be impracticable by reason of some statute or other cause, or
    unless the holders of a majority in aggregate principal amount of all the bonds then outstanding shall in writing direct the
    Trustee to cause said mortgaged and pledged property, or any part thereof, to be sold in parcels; in which case, so far as
    lawfully may be, the sales shall be made in such parcels as may be specified in such direction.	 	 
	 	 	 
	Notice of any sale or sales made
    under the power of sale herein conferred shall state the time and place when and where the same is to be made, and shall contain
    a brief description of the properties to be sold, and shall be published in such places and in such manner as may be required
    by law, and such other notice shall also be given as may be required to comply with any statute or law of the state where
    such sale is made. The Trustee may adjourn any sale under the power of sale herein contained, or cause the same to be adjourned,
    from time to time, by announcement at the time and place appointed for such sale or sales; and, without further notice or
    publication, such sale may be made at the time and place to which the same shall be so adjourned, unless otherwise provided
    by law. In case of any sale of the mortgaged and pledged property, or any part thereof, under the provisions of this Indenture,
    the whole of the principal of the bonds, if not previously due, shall become immediately due and payable, anything in the
    bonds or in this Indenture contained to the contrary notwithstanding.	 	 
	 	 	 
	Upon the completion of any sale
    or sales, the Trustee shall execute and deliver to the accepted purchaser or purchasers a deed or deeds of the properties
    sold, or shall execute and deliver, in conjunction with the deed or deeds of the court officer conducting such sale, a conveyance
    of the interests of the Trustee	 	 

    	 

    	

    

	135	 	 
	 	 	 
	in such properties. The Trustee
    and its successors and assigns are hereby appointed the true and lawful attorney or attorneys irrevocably of the Company in
    its name and stead to make, execute and deliver all necessary deeds and acts of conveyance, sale, assignment and transfer
    of such properties, and to substitute one or more persons or corporations with like power, the Company hereby ratifying and
    confirming all that its said attorney, attorneys or such substitutes, shall lawfully do or cause to be done by virtue hereof.
    Nevertheless, the Company shall, if so requested by the Trustee, ratify and confirm such sale by executing and delivering
    to the Trustee or to such purchaser or purchasers, all such proper assignments, deeds, conveyances and releases as may be
    designated in such request. In any deeds or instruments of conveyance, sale or transfer executed by the Trustee under this
    Article XI, the recitals therein of default, demand that sale be made, notice of sale, postponement of sale, terms of sale,
    sale, purchaser, payment of purchase money and any other fact or facts affecting the legality or validity of such sale, shall
    be effectual and conclusive proof of the facts related therein as against the Company, its successors and assigns and all
    other persons. Any such sale made under or by virtue of this Indenture, either under the power of sale hereby granted and
    conferred or under or by virtue of judicial proceedings, shall divest all right, title, interest, estate, claim and demand
    whatsoever, either at law or in equity, of the Company in, of or to the properties sold and every part thereof and shall be
    a perpetual bar, both at law and in equity, against the Company, its successors and assigns, and against any and all persons
    claiming or who may claim the properties sold, or any part thereof, from, through or under the Company, its successors or
    assigns, respectively.	 	 
	 	 	 
	Section
    75. In case of any sale of the mortgaged and pledged property, whether under the power of sale hereby granted or pursuant
    to judicial proceedings, the purchase money, proceeds or avails, together with any other sums which may then be held by or
    be payable to the Trustee under any of the provisions of	 	 

    	 

    	

    

	136	 	 
	 	 	 
	this Indenture as part of the security hereunder,
    other than sums held in trust for the payment or redemption of bonds or for the payment of interest thereon, shall be applied,
    subject to the provisions of Section 35 hereof, as follows:	 	 
	 	 	 
	First.
    To the payment of the costs, expenses, fees, and other charges of such sale, and a reasonable compensation to the Trustee,
    its agents and attorneys, and to the payment of all expenses and liabilities incurred without negligence or bad faith on
    the part of the Trustee and advances or disbursements made by the Trustee, and to the payment of all taxes, assessments
    or liens prior to the lien of this Indenture except any taxes, assessments or other superior liens subject to which such sale
    shall have been made;	 	1st Supp Ind
	 	 	 
	Second. To
    the payment of the whole amount then due and unpaid either for principal or interest, or for both principal and interest,
    upon the bonds, with interest on the overdue installments of interest at the legal rate; and in case such proceeds shall be
    insufficient to pay in full the whole amount so due and unpaid, then to the payment of such principal and interest ratably,
    according to the aggregate of such principal and the accrued and unpaid interest, without preference or priority of any one
    series over any other series of bonds, or of principal over interest, or of interest over principal, or of any installment
    of interest over any other installment of interest, except as to the difference, if any, in the respective rates of such interest;
    or	 	 
	 	 	 
	Third. To
    the payment of any premiums on any bonds called for redemption and with respect to which default was made in the payment
    of the redemption price, with interest at the legal rate, ratably and without, preference or priority of any one series over
    any other, except as to the rates of premium; and	 	 
	 	 	 
	Fourth. The
    remainder, if any, shall be paid over to the Company, its successors or assigns, or to whomsoever may be lawfully entitled
    to receive the same, or as a court of competent jurisdiction may direct.	 	 

    	 

    	

    

	137	 	 
	 	 	 
	Before making any such payment, the Trustee may fix a date for the distribution
    of such money and may require the presentation of the several bonds and coupons and their surrender if fully paid or for proper
    notation if only partly paid.	 	 
	 	 	 
	Section
    76. In case of any sale of the mortgaged and pledged property or any part thereof, the purchaser, for the purpose of
    making settlement or payment for the property purchased, shall be entitled to apply towards the payment of the purchase price,
    and to be credited therewith, any bonds and any matured and unpaid interest coupons or claims for interest to the amount to
    which such bonds and interest coupons or claims for interest would be entitled upon a distribution among the holders of the
    bonds of the net proceeds of such sale, after making the deductions allowable under the terms hereof for the costs and expenses
    of the sale, or otherwise; but such bonds and interest coupons or claims for interest so applied in payment by the purchaser
    shall be deemed to be paid only to the extent so applied. At any such sale the Trustee or any holder of any bond may bid for
    and purchase such mortgaged and pledged property, and may make payment therefor, as aforesaid, and upon compliance with the
    terms of sale, may hold, retain and dispose of such properties without further accountability. The receipt of the Trustee,
    or of the court officer conducting such sale, shall be sufficient discharge for the purchase money to any purchaser of the
    mortgaged and pledged property, or any part thereof, sold as aforesaid; and no such purchaser, or his representatives, grantees
    or assigns, upon becoming entitled to and receiving such receipt, shall be bound to see to the application of such purchase
    money upon or for any trust or purpose of this Indenture or be answerable in any manner whatsoever for any loss, misapplication
    or non-application of any such purchase money, or any part thereof.	 	 
	 	 	 
	Section
    77. The Company will not at any time insist upon or plead, or in any manner whatever claim or take the benefit or advantage
    of, any stay or extension law now or at any time hereafter in force in any locality where the mortgaged and pledged	 	 

    	 

    	

    

	138	 	 
	 	 	 
	property, or any part thereof, may be situated; and it will not claim, take or insist upon
    any benefit or advantage of any law now or hereafter in force providing for the valuation or appraisement of the mortgaged
    and pledged property, or any part thereof, prior to any sale or sales thereof made pursuant to any provision herein contained
    or the decree of a court of competent jurisdiction; and it will not, after any such sale or sales, claim or exercise any
    right under any law heretofore or hereafter enacted to redeem the properties so sold or any part thereof. The Company hereby
    expressly waives all benefit and advantage of any such law or laws; and it covenants that it will not in any way hinder, delay
    or impede the execution of any power herein granted to the Trustee, but it will suffer and permit the execution of every such
    power as if no such law or laws had been enacted.	 	 
	 	 	 
	Section 78. In case default
    shall be made in the payment of any installment of interest on any bond issued hereunder when and as such interest shall become
    due and payable, and any such default shall continue for a period of sixty (60) days, or in case default shall be made in
    the payment of the principal of any such bond when and as the same shall become due and payable, whether at the maturity of
    said bond or pursuant to notice of redemption or by declaration, as authorized by this Indenture, or by a sale of the mortgaged
    and pledged property, as hereinbefore provided, or otherwise, then, upon demand of the Trustee, the Company will pay to the
    Trustee, for the benefit of the holders of the bonds and interest coupons or claims for interest hereby secured then outstanding,
    the principal of all such bonds then due and payable, together with any premium due thereon, and the whole amount then due
    and payable for interest on such bonds, with interest upon the overdue principal, premium, if any, and installments of interest
    at the legal rate, and, in case the Company shall fail to pay the same forthwith upon such demand, the Trustee, in its own
    name and as trustee of an express trust, shall be entitled to recover judgment against the Company or any other obligor
    on the bonds for the whole amount of such principal and interest remaining unpaid,	 	1st Supp Ind

    	 

    	

    

	139	 	 
	 	 	 
	as well as judgment for any sums that may be payable hereunder for fees, charges, expenses
    and liabilities of the Trustee hereunder incurred without negligence or bad faith on the part of the Trustee, and of
    the holders of the bonds. The Trustee is hereby irrevocably appointed (and the successive respective holders of bonds and
    interest coupons issued hereunder, by taking and holding the same, shall be conclusively deemed to have so appointed the Trustee)
    the true and lawful attorney-in-fact of the respective holders of the bonds and interest coupons issued hereunder, with authority
    to make or file, irrespective of whether the bonds or any of them are in default as to payment of principal or interest, in
    the respective names of the holders of the bonds or interest coupons, or in behalf of all holders of the bonds or interest
    coupons as a class, such proofs of claim and other papers or documents, to receive payment of any sums becoming distributable
    on account thereof, and to execute any other papers and documents and to do and perform any and all acts and things for and
    in behalf of the respective holders of the bonds or interest coupons, or in behalf of all such holders as a class, as may
    be necessary or advisable, in the opinion of counsel for the Trustee, in order to have the respective claims
    of the Trustee and of the holders of the bonds or interest coupons against the Company or any other obligor on the bonds allowed in any equity receivership, insolvency, liquidation, bankruptcy or other judicial proceedings relative to the
    Company or any other obligor on the bonds or its creditors or its property, and to receive payment of or on account
    of such claims; and any receiver, assignee or trustee in bankruptcy is hereby authorized by each of the bondholders to make
    such payments to the Trustee, and, in the event that the Trustee shall consent to the making of such payments directly to
    the bondholders, to pay to the Trustee any amount due it for compensation and expenses, including counsel fees, incurred by
    it up to the date of such distribution. Provided, however, that the Trustee shall not take, and shall be without power or
    authority to take, any action under any provision of this Section 78 which will in any manner or to any extent affect or impair
    the lien of the Indenture upon the mortgaged and pledged property, or any part thereof, or any rights, powers or remedies
    of the Trustee or of the holders of the bonds hereby secured.	 	 

                                                      1st Supp Ind
 

 18th Supp Ind
 

1st Supp Ind
 1st Supp Ind

    	 

    	

    

	140	 	 
	 	 	 
	Subject to the foregoing
    provisions, the Trustee, to the extent permitted by law, shall be entitled to recover judgment and to file and prove such
    claims, as aforesaid, at any time before or after or during the pendency of any proceedings for the enforcement of the lien
    of this Indenture upon the mortgaged and pledged property, and the right to recover such judgment and to file and prove such
    claims shall not be affected by or be prejudicial to any entry or sale hereunder, or by or to the exercise of any powers conferred
    by any of the provisions of this Indenture, or by or to the foreclosure of the lien hereof; and, in case of a sale of such
    mortgaged and pledged property, and of the application of the proceeds of sale to the payment of the mortgage debt, the Trustee,
    as aforesaid, in its own name and as trustee of an express trust, shall be entitled to receive and to enforce payment of any
    and all deficiencies or amounts then remaining unpaid upon or on account of any or all of the bonds then outstanding hereunder,
    for the benefit of the respective holders thereof, and shall be entitled to recover judgment for any portion of the mortgage
    debt remaining unpaid, with interest. No recovery of any judgment by the Trustee, and no levy of any execution under any such
    judgment upon property subject to the lien of this Indenture, or upon any other property, and no filing or proving of any
    claim, shall in any manner or to any extent affect or impair the lien of this Indenture upon the mortgaged and pledged property,
    or any part thereof, or any rights, powers or remedies of the Trustee or of the holders of the bonds hereby secured; but such
    lien, rights, powers and remedies shall continue unaffected and unimpaired as before. In case of any receivership, insolvency
    or bankruptcy proceedings affecting the Company or its property, or any other obligor on the bonds or its property,
    the Trustee shall have power to intervene in such proceedings and take any action therein that may be permitted by the court
    and shall (except as may be otherwise provided by law) be entitled to file and prove a claim for the entire amount due and
    payable by the Company or such other obligor under this Indenture at the date of the institution of such proceedings
    and for any additional amount which may become due and payable by the Company or such other obligor hereunder after
    such date,	 	1st Supp
    Ind

    

1st Supp Ind

    

    1st Supp Ind

    	 

    	

    

	141	 	 
	 	 	 
	without regard to or deduction for any amount which may have been
    or which may thereafter be received, collected or realized by the Trustee from or out of the mortgaged and pledged property,
    or any part thereof or from or out of the proceeds thereof or any part thereof. Any money collected by the Trustee under this
    Section 78 shall be applied by the Trustee, subject to the provisions of Section 35 hereof, first, to the payment of the costs
    and expenses of the proceedings resulting in the collection of such moneys, second, to the payment of the fees, charges, expenses
    and liabilities of the Trustee hereunder incurred without negligence or bad faith on the part of the Trustee, and
    of the holders of the bonds, and third, to the payment of the amounts then due and unpaid upon the bonds outstanding hereunder
    and interest coupons or claims for interest, respectively, without any preference or priority of any kind (except as to the
    difference, if any, in the respective rates of such interest), but ratably according to the amounts due and payable upon such
    bonds and interest coupons or claims for interest, respectively, at the date fixed by the Trustee for the distribution of
    such money, on presentation of the several bonds and coupons and their surrender if fully paid or for proper notation if only
    partly paid.	 	1st Supp Ind
	 	 	 
	All rights of action
    vested in the Trustee pursuant to the provisions of this Indenture may be enforced by the Trustee without the possession of
    any of the bonds or coupons or the production thereof at any trial or other proceedings relative thereto, and any suit or
    proceedings instituted by the Trustee shall be brought in its name, as trustee, and any recovery shall be for the pro
    rata benefit of the holders of the outstanding bonds and coupons entitled thereto.	 	 
	 	 	 
	Section 79. Anything in this
    Indenture contained to the contrary notwithstanding, the holders of not less than a majority in aggregate principal amount
    of the bonds outstanding hereunder, from time to time, shall have the right, by an instrument or concurrent instruments in
    writing, executed as provided in Article XII hereof and delivered to the Trustee, to direct the time, method and place of
    conducting any and all proceedings under this Article	 	 

    	 

    	

    

	142	 	 
	 	 	 
	XI for any sale of the mortgaged and pledged property or for the foreclosure of this
    Indenture     or for the appointment of a receiver, or for any other remedy available to the Trustee, or exercising any trust
    or power conferred     upon the Trustee, and the Trustee shall not be responsible to anyone for any action taken or omitted
    by it pursuant to any     such direction: provided however, that, subject to the provisions of Sections 92 and 93, the
    Trustee shall     have the right to decline to follow any such direction if the Trustee shall be advised by counsel that the
    action or     proceeding so directed may not lawfully be taken or  if the Trustee in good faith shall by responsible officers
    determine that     the action or proceeding so directed would involve the Trustee in personal liability or be unjustly
    prejudicial to the non-assenting     bondholders.	 	18th Supp Ind
	 	 	 
	Section 80. Except as herein
    expressly provided to the contrary, no remedy herein conferred upon or reserved to the Trustee or to the holders of the bonds
    is intended to be exclusive of any other remedy, but every remedy herein provided shall be cumulative, and shall be in addition
    to every other remedy given hereunder or now or hereafter existing at law or in equity, or by statute; and every power and
    remedy given by this Indenture to the Trustee or to holders of the bonds may be exercised from time to time and as often as
    may be deemed expedient. No delay or omission by the Trustee or by any holder of any bond to exercise any right or power arising
    from any default shall impair any such right or power or shall be construed to be a waiver of any default or an acquiescence
    therein. In case the Trustee shall have proceeded to enforce any right under this Indenture by foreclosure, entry or otherwise,
    and such proceedings shall have been discontinued or abandoned because of waiver, or for any other reason, or shall have been
    determined adversely, then, and in each and every such case, the Company and the Trustee shall severally and respectively
    be restored to their former positions and rights hereunder in respect of the mortgaged and pledged property, and all rights,
    remedies and powers of the Trustee shall continue as though no such proceedings had been taken.	 	 

    	 

    	

    

	143	 	 
	 	 	 
	Section
    81. No holder of any bond shall have the right to institute any suit, action or proceeding at law or in equity upon,
    or in respect of, this Indenture, or for the execution of any trust or power hereof, or for any other remedy under or upon
    this Indenture, unless such holder shall previously have given to the Trustee written notice of the occurrence of a default;
    and unless, also, such holder or holders shall have tendered to the Trustee indemnity against all costs, expenses and liabilities
    which might be incurred in or by reason of such action, suit or proceeding; and unless, also, the holders of not less than
    twenty per centum (20%) in aggregate principal amount of all the bonds then outstanding shall have tendered such indemnity
    and requested the Trustee in writing to take action in respect of such default and the Trustee shall have declined to take
    such action or shall have failed so to do within thirty (30) days thereafter; it being understood and intended that no holder
    of any bond or interest coupon shall have any right in any manner whatever to affect, disturb or prejudice the lien of this
    Indenture by his action, or to enforce any right hereunder, except in the manner herein provided, and that all proceedings
    hereunder with respect to the lien hereof or to the mortgaged and pledged property shall be instituted, had and maintained
    in the manner herein provided and for the equal benefit of all holders of bonds outstanding hereunder.	 	 
	 	 	 
	Nothing contained in this Section shall be deemed to modify the obligation
    of the Trustee to exercise after default the rights and powers vested in it by this Indenture with the degree of care and
    skill specified in Section 92, and nothing contained in this Article XI or elsewhere in this Indenture shall affect or impair
    the right of any bondholder, which is absolute and unconditional, to enforce the payment of the principal of and interest
    on his bonds at and after the maturity thereof as therein expressed or as accelerated by call for redemption thereof, or the
    obligation of the Company, which is also absolute and unconditional, to pay the principal of and interest and premium, if
    any, on each of the bonds issued hereunder to the respective holders thereof at the time and place expressed in said bonds
    and the coupons appurtenant thereto and in said notice of redemption, if any.	 	 

    	 

    	

    

	144	 	 
	 	 	 
	ARTICLE XII.	 	 
	 	 	 
	Evidence
    of Rights of Bondholders.	 	 
	 	 	 
	Section 82. Any request or
    other instrument, which this Indenture may require or permit to be signed and executed by the bondholders, may be in any number
    of concurrent instruments of similar tenor and may be signed or executed by such bondholders in person or by attorney appointed
    in writing. Proof of the execution of any such request or other instrument, or of a writing appointing any such agent, or
    the holding by any person of the bonds or coupons appertaining thereto, shall be sufficient for any purpose of this Indenture
    if made in the following manner and, subject to the provisions of Section 92 hereof, shall be conclusive in favor of the Trustee
    with respect to any action in reliance thereon:	 	 
	 	 	 
	(a) The fact and date of the execution by any person
    of such request or other instrument or writing may be proved by the certificate under his official seal of any notary public,
    or other officer in any jurisdiction, having power to take acknowledgments, that the person signing such request or other
    instrument acknowledged to him the execution thereof, or by an affidavit of a witness of such execution;	 	 
	 	 	 
	(b) The amount of bonds transferable by delivery held
    by any person executing such request or other instrument as a bondholder, and the series and serial numbers thereof, held
    by such person, and the date of his holding the same, may be proved by a certificate executed by any trust company, bank,
    banker or other depositary wheresoever situated, if such certificate shall be deemed by the Trustee to be satisfactory, showing
    that on the date therein mentioned such person had on deposit with or exhibited to such depositary the bonds described in
    such certificate. The Trustee may nevertheless in its discretion require further proof in cases where it deems further proof
    desirable. The ownership of registered bonds and of coupon bonds which shall at the time	 	 

    	 

    	

    

	145	 	 
	 	 	 
	be registered as to principal shall be proved by the registry books as
    hereinbefore provided.	 	 
	 	 	 
	Any request, consent or vote of the owner of any bond shall bind all future
    owners of the same in respect of anything done or suffered by the Company or the Trustee in pursuance thereof.	 	 
	 	 	 
	Section 83. The Company and
    the Trustee may deem and treat the bearer of any temporary or coupon bond outstanding hereunder, which shall not at the time
    be registered as to principal in the name of the owner thereof as hereinbefore authorized, and the bearer of any coupon for
    interest on any such bond, whether such bond shall be registered or not, as the absolute owner of such bond or coupon, as
    the case may be, for the purpose of receiving payment thereof or on account thereof and for all other purposes, and neither
    the Company nor the Trustee shall be affected by any notice to the contrary.	 	 
	 	 	 
	The Company and the Trustee may deem and treat the person in whose name
    any registered bond outstanding hereunder shall be registered upon the books of the Company as herein authorized, as the absolute
    owner of such bond for the purpose of receiving payment of or on account of the principal of and interest on such bond and
    for all other purposes, and they may deem and treat the person in whose name any coupon bond shall be so registered as to
    principal as the absolute owner thereof for the purpose of receiving payment of or on account of the principal thereof and
    for all other purposes, except to receive payment of interest represented by outstanding coupons; and all such payments so
    made to any such registered holder or upon his order shall be valid and effectual to satisfy and discharge the liability upon
    such bond to the extent of the sum or sums so paid, and neither the Company nor the Trustee shall be affected by any notice
    to the contrary.	 	 
	 	 	 
	Neither the Company nor the Trustee shall be bound to recognize any person
    as the holder of a bond outstanding under this Indenture unless and until his bond is submitted for inspection, if required.
    and his title thereto satisfactorily established, if disputed.	 	 

    	 

    	

    

	146	 	 
	 	 	 
	ARTICLE XIII.	 	 
	 	 	 
	Defeasance.	 	 
	 	 	 
	Section
    84. If the Company, its successors or assigns, shall pay or
    cause to be paid unto the holders of said bonds and coupons the principal, premium, if any, and interest to become due thereon
    at the times and in the manner stipulated therein, and shall keep, perform and observe all and singular the covenants and
    promises in said bonds and in this Indenture expressed to be kept, performed and observed by it or on its part, then these
    presents and the estate and the rights hereby granted shall cease, determine and be void, and thereupon the Trustee shall,
    upon request of the Company and at its expense and upon delivery to the Trustee by the Company of a treasurer’s certificate and an opinion of counsel, cancel and discharge the lien of this Indenture, and execute and deliver to the Company such
    deeds as shall be requisite to satisfy the lien hereof, and reconvey to the Company the estate and title hereby conveyed and
    assign and deliver to the Company any property subject to the lien of this Indenture which may then be in the possession of
    the Trustee. Bonds and coupons for the payment or redemption of which money shall have been set apart by or paid to the Trustee,
    in trust for such purpose, shall be deemed to be paid within the meaning of this Article XIII on the first date on which the
    Trustee is authorized to pay such money to the holders of such bonds and coupons. The Company may at any time surrender to
    the Trustee for cancellation, or in cancelled form, any bonds of any series previously authenticated hereunder properly endorsed
    for transfer, if registered, and with all unmatured coupons, if any, thereto attached and such bonds, upon such surrender
    and upon delivery to the Trustee of evidence satisfactory to it of the payment or cancellation of all past due coupons pertaining
    to said bonds or cash sufficient for the payment of any thereof not so paid or cancelled, shall be deemed to be and shall
    be paid and retired and shall be cancelled or cremated by the Trustee and a certificate of such cancellation or cremation
    delivered to the Company.	 	 

    	 

    	

    

	147	 	 
	 	 	 
	Section
    85.
    In case the owner of any bond or any matured coupon entitled
    to payment hereunder at any time outstanding hereunder shall not, within ten years after the maturity date of such bond or
    coupon, or if such bond shall have been called for redemption, then within fifteen years after the date fixed for redemption
    of such bond, claim the amount on deposit with the Trustee or other depositary for the payment of such bond, or of such coupon,
    the Trustee or other depositary, upon receipt of such indemnity, if any, as it may require, shall pay over to or upon the
    written order of the Company the amount so deposited and thereupon the Trustee or other depositary shall be released from
    any and all further liability with respect to the payment of such bond or coupon and the holder of said bond or coupon shall
    be entitled to look only to the Company as an unsecured creditor for the payment thereof; provided, however, that the
    Trustee or other depositary before being required to make any such payment may, at the expense of the Company, cause notice
    that said money has not been so called for and that after a date named therein it will be returned to the Company, to be published
    once a week for two consecutive weeks (not necessarily on the same day in each week), in a daily newspaper printed in the
    English language and of general circulation in the city where the principal office of the Trustee is then located, and in
    a daily newspaper printed in the English language and of general circulation in the Borough of Manhattan, The City of New
    York, and in each of the other cities wherein any of such bonds or coupons are expressed to be payable.	 	1st Supp
    Ind
	 	 	 
	ARTICLE
    XIV.	 	 
	 	 	 
	Immunity
    of Officers, Stockholders and Directors.	 	 
	 	 	 
	Section
    86.
    No recourse
    under or upon any obligation, covenant or agreement contained in this Indenture, or in any bond or coupon hereby secured,
    or under any judgment obtained against the Company, or by the enforcement of any assessment	 	 

    	 

    	

    

	148	 	 
	 	 	 
	or penalty, or
    by any legal or equitable proceedings by virtue of any constitution or statute or rule of law or otherwise, shall be had against
    any incorporator, stockholder, officer or director, past, present or future, as such, of the Company, or of any predecessor
    or successor corporation, either directly or through the Company, or such predecessor or successor corporation, or otherwise,
    for the payment for or to the Company or any receiver thereof, or for or to the holder of any bond or coupon issued or secured
    hereunder or otherwise, of any sum that may be due and unpaid by the Company upon any such bonds or coupons; and any and all
    personal liability of every name and nature, whether at common law or in equity, or by statute or by constitution or otherwise,
    of any such incorporator, stockholder, officer or director, as such, for the payment for or to the Company or any receiver
    thereof, or for or to the holder of any bond or coupon issued or secured hereunder or otherwise, of any sum that may remain
    due and unpaid upon the bonds and coupons hereby secured or any of them, is hereby expressly waived and released as a condition
    of and as part of the consideration for the execution of this Indenture and the issue of such bonds and coupons.	 	 
	 	 	 
	ARTICLE
    XV.	 	 
	 	 	 
	Consolidations,
    Mergers, Transfers and Sales.	 	 
	 	 	 
	Section
    87. Nothing in this Indenture contained shall prevent
    any lawful consolidation or merger of the Company with or into any other corporation, or any conveyance or transfer, subject
    to the lien of this Indenture, of all, or substantially all, the mortgaged and pledged property, as an entirety, to any corporation
    lawfully entitled to acquire and operate the same; provided, however, and the Company covenants and agrees that such consolidation,
    merger, conveyance or transfer shall be upon such terms as in no respect to impair the lien or priority of lien of this Indenture
    upon the property then subject hereto, or the security afforded hereby, or any of the rights or powers of the	 	 

    	 

    	

    

	149	 	 
	 	 	 
	Trustee or the
    bondholders hereunder and that the provisions and conditions of this Section 87 shall be complied with and the execution of
    the indenture provided for in this Section 87 shall be a condition to any such consolidation, merger, conveyance or transfer;
    and provided further that the corporation formed by such consolidation, or into which such merger shall have been made, or
    acquiring all or substantially all of the mortgaged and pledged property as an entirety as aforesaid, shall execute and deliver
    to the Trustee hereunder an indenture satisfactory to the Trustee in and by which such corporation shall assume the due and
    punctual payment of the principal and interest of all the bonds issued hereunder according to their tenor, and the due and
    punctual performance of all the covenants and agreements of this Indenture to be kept or performed by the Company, and shall
    make appropriate covenants to protect the lien and priority of lien of this Indenture, the security afforded hereby, and the
    rights and powers of the Trustee and bondholders hereunder; and provided further that the property of the other corporation
    with which the Company shall consolidate or merge or to which all or substantially all the mortgaged and pledged property
    shall be conveyed shall not be subject to any lien (other than liens which, if they existed upon property of the Company,
    would constitute excepted encumbrances) which after such consolidation, merger or conveyance will be prior to the lien of
    this Indenture on the property owned by such corporation, upon completion of such consolidation, merger or conveyance, unless
    the Company could have acquired such property consistently with the provisions of Section 38 hereof.	 	 
	 	 	 
	Section
    88. In
    case the Company shall be consolidated with or merged into any other corporation, or shall convey or transfer, subject to
    the lien of this Indenture, all, or substantially all, the mortgaged and pledged property, as an entirety, the corporation
    resulting from such consolidation, or into which the Company shall have been merged, or which shall have received a conveyance
    or transfer, as aforesaid (such corporation being hereinafter called the successor corporation), may thereafter issue	 	 

    	 

    	

    

	150	 	 
	 	 	 
	bonds under this
    Indenture, provided it shall first have executed and delivered to the Trustee an indenture as required by the provisions of
    Section 87 hereof. Upon the execution and delivery of such indenture, the successor corporation shall succeed to and be substituted
    for the Company under this Indenture with the same effect as if it had been named herein as the mortgagor corporation, and
    may thereafter, subject to all the terms, conditions and restrictions in this Indenture prescribed, exercise all the powers
    and rights which the Company might or could exercise prior to such consolidation, merger or sale, and may, without in any
    wise limiting the generality of the foregoing, issue bonds hereunder to the extent and for the purposes herein provided with
    respect to the issuance of bonds by the Company and may also issue any bonds which the Company was entitled to issue but had
    not issued hereunder either in the name of such successor corporation or of the Company. All the bonds so issued shall in
    all respects have the same legal rank and security as the bonds theretofore or thereafter issued in accordance with the terms
    of this Indenture as though all of said bonds had been issued at the date of the execution thereof. As a condition precedent
    to the execution by such successor corporation and the authentication and delivery by the Trustee of any such additional bonds
    or of the withdrawal of cash or the release of property under any of the provisions of this Indenture on the basis of property
    additions of such successor corporation, the indenture with the Trustee to be executed and caused to be recorded by the successor
    corporation as in this Section 88 provided or a subsequent indenture shall contain a conveyance or transfer and mortgage in
    terms sufficient to subject to the lien hereof all property owned or thereafter acquired by such successor corporation (except
    property of a character similar to that excluded from the lien of this Indenture) or such property as such successor corporation
    is making the basis for the authentication of bonds, the withdrawal of cash or the release of property hereunder, and the
    lien created thereby shall have similar force, effect and standing as the lien of this Indenture would have if	 	 

    	 

    	

    

	151	 	 
	 	 	 
	the Company itself should acquire or
    construct such property and request the authentication of bonds or the withdrawal of cash or the release of property
    hereunder. Upon the execution and delivery by such successor corporation of an indenture conveying and mortgaging upon
    the trusts herein declared all the property which it shall own at the date thereof and all that it may thereafter
    acquire, except property of a character similar to that excluded from the lien of this Indenture, then all property owned
    by it at the date upon which it became such successor corporation (excluding the property received from the Company)
    shall, within the meaning of the provisions of Section 4 hereof, be deemed to be plant or property operated by others
    acquired by such successor corporation on the date of such conveyance and mortgage for or on account of the cost or value
    of which bonds may be issued hereunder subject to the provisions of Article IV hereof.	 	 
	 	 	 
	The Trustee may
    receive a treasurer’s certificate and an opinion of counsel as conclusive evidence, subject to the provisions of Section
    92 hereof, that any consolidation, merger, conveyance or transfer, and any supplemental indenture executed in connection therewith,
    comply with the foregoing conditions and provisions of Section 87 hereof and of this Section 88.	 	 
	 	 	 
	Section
    89. Every such successor corporation shall possess, subject
    to the terms and conditions of this Indenture, and may from time to time exercise, each and every right and power of the Company,
    in the name of such successor corporation or otherwise; and any act, proceeding, resolution or certificate by any of the terms
    of this Indenture required or provided to be done, taken or performed, or made or executed, by any board or officer of the
    Company shall and may be done, taken and performed, or made and executed, with like force and effect, by the corresponding
    board or officer of any such successor corporation.	 	 
	 	 	 
	Section
    90. In case the Company, pursuant to this Article XV, shall
    be consolidated with or merged into any other corporation or shall convey or transfer all or substantially all of	 	 

    	 

    	

    

	152	 	 
	 	 	 
	the mortgaged and pledged property
    as an entirety subject to the lien of this Indenture, this Indenture (unless the indenture executed pursuant to Section 87
    hereof by the corporation resulting from such consolidation or into which the Company shall have been merged or which shall
    have received such conveyance or transfer, or a subsequent indenture, conveys and mortgages upon the trusts herein declared
    all its property then owned or thereafter acquired, subject to the exceptions stated in Section 88 hereof) shall not become
    or be a lien upon any of the properties or franchises of the successor corporation except (a) those acquired by it from the
    Company and property appurtenant thereto and property which the successor corporation shall thereafter acquire or construct
    which shall form an integral part or be essential to the use or operation of any property then or thereafter subject to the
    lien hereof; and (b) the property additions to or about the plants or properties of the successor corporation made and used
    by it as the basis for the issuance of additional bonds or the withdrawal of cash or the release of property under this Indenture
    as herein provided; and (c) such franchises, repairs, renewals, replacements and additional property as may be acquired by
    the successor corporation to maintain the mortgaged and pledged property in good repair, working order and condition as an
    operating system or systems and to comply with any covenant or agreement hereof to be kept or performed by the Company and
    by such successor corporation.	 	 
	 	 	 
	ARTICLE
    XVI.	 	 
	 	 	 
	Concerning
    the Trustee.	 	 
	 	 	 
	Section
    91. The Trustee shall at all times be a bank or trust company
    eligible under Section 46 and have a combined capital and surplus of not less than Five Million Dollars ($5,000,000). If the
    Trustee publishes reports of condition at least annually, pursuant to law or to the requirements of any supervising or examining
    authority referred to in Section 46, then for the purposes of this Section the combined capital and surplus of the	 	 

    	 

    	

    

	153	 	 
	 	 	 
	Trustee shall be deemed to be its combined
    capital and surplus as set forth in its most recent report of condition so published.	 	 
	 	 	 
	Section
    92. The Trustee hereby accepts the trust hereby created. The
    Trustee undertakes, prior to default and after the curing of all defaults which may have occurred, to perform such duties
    and only such duties as are specifically set forth in this Indenture, and in case of default (which has not been cured) to
    exercise such of the rights and powers vested in it by this Indenture, and to use the same degree of care and skill in their
    exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs.	 	 
	 	 	 
	The Trustee, upon
    receipt of evidence furnished to it by or on behalf of the Company pursuant to any provision of this Indenture, will examine
    the same to determine whether or not such evidence conforms to the requirements of this Indenture.	 	 
	 	 	 
	Section
    93. No provision of this Indenture shall be construed to relieve
    the Trustee from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except
    that	 	 
	 	 	 
	(a)
    prior to default hereunder and after the curing of all defaults which may have occurred, the Trustee shall not be liable except
    for the performance of such duties as are specifically set forth in this Indenture, and no implied covenants or obligations
    shall be read into this Indenture against the Trustee, but the duties and obligations of the Trustee, prior to default and
    after the curing of all defaults which may have occurred, shall be determined solely by the express provisions of this Indenture;
    and	 	 
	 	 	 
	(b)
    prior to default hereunder and after the curing of all defaults which may have occurred, and in the absence of bad faith on
    the part of the Trustee, the Trustee may conclusively rely as to the truth of the statements and the correctness of the opinions
    expressed therein, upon certificates or opinions conforming to the requirements of this Indenture; and	 	 

    	 

    	

    

	154	 	 
	 	 	 
	(c)
    the Trustee shall not be personally liable for any error of judgment made in good faith by a responsible officer or officers
    of the Trustee unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts; and	 	 
	 	 	 
	(d)
    the Trustee shall not be personally liable with respect to any action taken or omitted to be taken by it in good faith in
    accordance with the direction of the holders of not less than a majority in principal amount of the bonds at the time outstanding
    relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising
    any trust or power conferred upon the Trustee under this Indenture.	 	 
	 	 	 
	Section 94.
    The recitals of fact contained herein and in the bonds (other than the Trustee’s authentication certificate)
    shall be taken as the statements of the Company and the Trustee assumes no responsibility for the correctness of the
    same. The Trustee makes no representations as to the value of the mortgaged and pledged property or any part thereof, or
    as to the title of the Company thereto, or as to the validity or adequacy of the security afforded thereby and hereby, or
    as to the validity of this Indenture or of the bonds or coupons issued hereunder.	 	1st Supp Ind
	 	 	 
	Section
    95.
    The Trustee subject
    to the provisions of Sections 92 and 93 shall not be personally liable in case of entry by it upon the mortgaged and pledged
    property for debts contracted or liability or damages incurred in the management or operation of said property.	 	18th Supp Ind
	 	 	 
	Section
    96. To the extent permitted by Sections 92 and 93:	 	 
	 	 	 
	(1)
    The Trustee may rely and shall be protected in acting upon any resolution, certificate, opinion, notice, request, consent,
    order, appraisal, report, bond, or other paper or document believed by it to be genuine and to have been signed or presented
    by the proper party or parties ; and	 	 
	 	 	 
	(2)
    The Trustee may consult with counsel and the opinion of such counsel shall be full and complete authorization	 	 

    	 

    	

    

	155	 	 
	 	 	 
	and protection
    in respect of any action taken or suffered by it hereunder in good faith and in accordance with the opinion of such counsel.	 	 
	 	 	 
	Section
    97. The Trustee subject
    to the provisions of Sections 92 and 93 shall not be under any responsibility for
    the selection or approval of any engineer, accountant or other expert for any of the purposes expressed in this Indenture,
    except that nothing in this Section contained shall relieve the Trustee of its obligation to exercise reasonable care with
    respect to the selection or approval of independent experts who may furnish opinions or certificates to the Trustee pursuant
    to any provision of this Indenture.	 	18th
    Supp Ind
	 	 	 
	Any resolution of
    the Board of Directors shall be evidenced to the Trustee by a copy thereof certified by the Secretary or an Assistant Secretary
    of the Company to have been duly adopted, and the Trustee may accept such copy as conclusive evidence of the adoption of such
    resolution.	 	 
	 	 	 
	Nothing contained
    in this Section shall be deemed to modify the obligation of the Trustee to exercise after default the rights and powers vested
    in it by this Indenture with the degree of care and skill specified in Section 92.	 	 
	 	 	 
	Section
    98. Subject to the provisions of Sections 104 and 105, the
    Trustee may buy, hold, sell or deal in the bonds and coupons, and other securities of the Company, and may engage or be interested
    in any financial or other transaction with the Company, and may act as, and may permit any of its officers or directors to
    act as, a member of, or may act as depositary, trustee or agent for, any committee formed to protect the rights of the bondholders
    or the holders of other obligations, whether or not issued hereunder, or to effect or aid in any reorganization growing out
    of the enforcement of the bonds or this Indenture or other obligations, whether or not any such committee represents the holders
    of the majority in principal amount of the bonds outstanding hereunder, all as freely as if it were not Trustee hereunder.	 	 

    	 

    	

    

	156	 	 
	 	 	 
	Section
    99. Subject to the provisions of Section 85, all moneys
    received by the Trustee, whether as Trustee or paying agent, shall, until used or applied as herein provided, be held in trust
    for the purposes for which they were paid. The Trustee may allow and credit to the Company interest on any moneys received
    by it hereunder at such rate, if any, as may be agreed upon with the Company from time to time and as may be permitted by
    law.	 	 
	 	 	 
	Section
    100. The Company covenants and agrees to pay to the Trustee
    from time to time, and the Trustee shall be entitled to, reasonable compensation for all services rendered by it in the execution
    of the trusts hereby created and in the exercise and performance of any of the powers and duties hereunder of the Trustee,
    which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust,
    and the Company will reimburse the Trustee for all advances made by the Trustee in accordance with any of the provisions of
    this Indenture and will pay to the Trustee from time to time its expenses and disbursements (including the reasonable compensation
    and the expenses and disbursements of its counsel and of all persons not regularly in its employ). The Company also covenants
    to indemnify the Trustee for, and to hold it harmless against, any loss, liability or expense incurred without negligence
    or bad faith on the part of the Trustee, arising out of or in connection with the acceptance or administration of this trust,
    including the costs and expenses of defending against any claim of liability in the premises. The Company further covenants
    and agrees to pay interest at the rate of six per centum (6%) per annum until paid, upon all amounts paid, advanced or disbursed
    by the Trustee for which it is entitled to reimbursement or indemnity as herein provided. The obligations of the Company to
    the Trustee under this Section shall constitute additional indebtedness secured hereby. Such additional indebtedness shall
    be secured by a lien prior to that of the bonds upon the trust estate, including all property or funds held or collected by
    the Trustee as such.	 	 

    	 

    	

    

	157	 	 
	 	 	 
	Section
    101. In order further to assure the Trustee that it will be compensated, reimbursed and indemnified as provided in
    Section 100 and that the prior lien provided for in Section 100 upon the trust estate to secure the payment of such compensation,
    reimbursement and indemnity will be enforced for the benefit of the Trustee, all parties to this Indenture agree, and each
    holder or owner of any bond by his acceptance thereof shall be deemed to have agreed that in the event of	 	
	 	 	 
	(1) the adjudication of the Company
    as a bankrupt by any court of competent jurisdiction,	 	 
	 	 	 
	(2) the filing of any petition
    seeking the reorganization of the Company under the Federal Bankruptcy Laws or any other applicable law or statute of the
    United States of America or of any State thereof,	 	 
	 	 	 
	(3) the appointment of one or
    more trustees or receivers of all or substantially all of the property of the Company,	 	 
	 	 	 
	(4) the filing of any bill to
    foreclose this Indenture,	 	 
	 	 	 
	(5) the filing by the Company
    of a petition to take advantage of any insolvency act, or	 	 
	 	 	 
	(6) the institution of any other
    proceeding wherein it shall become necessary or desirable to file or present claims against the Company,	 	 
	 	 	 
	the Trustee may file from time to time in any such proceeding or proceedings
    one or more claims, supplemental claims and amended claims as a secured creditor for its reasonable compensation for all services
    rendered by it (including services rendered during the course of any such proceeding or proceedings) and for reimbursement
    for all advances, expenses and disbursements (including the reasonable compensation and the expenses and disbursements of
    its counsel and of all persons not regularly in its employ) made or incurred by it in the execution of the trusts hereby created
    and in the exercise and performance of any of the powers and duties herein of the Trustee, and for any and all amounts to	 	 

    	 

    	

    

	158	 	 
	 	 	 
	which the Trustee is entitled as indemnity as provided in Section 100;
    and the Trustee and its counsel and agents may file in any such proceeding or proceedings applications or petitions for compensation
    for such services rendered, for reimbursement for such advances, expenses and disbursements, and for such indemnity. The claim
    or claims of the Trustee filed in any such proceeding or proceedings shall be reduced by the amount of compensation for services,
    reimbursement for advances, expenses and disbursements, and indemnity paid to it following final allowance to it and to its
    counsel and agents by the court in any such proceeding as an expense of administration or in connection with a plan of reorganization
    or readjustment. To the extent that compensation, reimbursement and indemnity are denied to the Trustee or to its counsel
    or other agents because of not being rendered or incurred in connection with the administration of an estate in a proceeding
    or in connection with a plan of reorganization or readjustment approved as required by law, because such services were not
    rendered in the interests of and with benefit to the estate of the Company as a whole but in the interests of and with benefit
    to the holders of the bonds, in the execution of the trusts hereby created or in the exercise and performance of any of the
    powers and duties hereunder of the Trustee or because of any other reason, the court may, to the extent permitted by law,
    allow such claim, as supplemented and amended, in any such proceeding or proceedings and, for the purposes of any plan of
    reorganization or readjustment of the Company’s obligations, may classify the Trustee as a secured creditor of a class
    separate and distinct from that of other creditors and of a class having priority and precedence over the class in which the
    holders of bonds are placed by reason of having a lien, prior and superior to that of the holders of the bonds, upon the trust
    estate, including all property or funds held or collected by the Trustee as such. The amount of the claim or claims of the
    Trustee for services rendered and for advances and the expenses and disbursements, including the reasonable compensation and
    the expenses and disbursements of its counsel and of all persons not regularly in its employ, which	 	 

    	 

    	

    

	159	 	 
	 	 	 
	are not allowed and paid in any such proceedings but for which the Trustee
    is entitled to the allowance of a secured claim as herein provided, may be fixed by the court or judge in any such proceeding
    or proceedings to the extent that such court or judge has or exercises jurisdiction over the amount of any such claim or claims.	 	 
	 	 	 
	If, and to the extent that, the
    Trustee and its counsel and other persons not regularly in its employ do not receive compensation for services rendered, reimbursement
    of its or their advances, expenses and disbursements, or indemnity, as herein provided, as the result of allowances made in
    any such proceeding or by any plan of reorganization or readjustment of obligations of the Company, the Trustee shall be entitled,
    in priority to the holders of the bonds, to receive any distributions of any securities, dividends or other disbursements
    which would otherwise be made to the holders of bonds in any such proceeding or proceedings and the Trustee is hereby constituted
    and appointed, irrevocably, the attorney-in-fact for the holders of the bonds and each of them to collect and receive, in
    their name, place and stead, such distributions, dividends or other disbursements, to deduct therefrom the amounts due to
    the Trustee, its counsel and other persons not regularly in its employ on account of services rendered, advances, expenses
    and disbursements made or incurred, or indemnity, and to pay and distribute the balance, pro
    rata, to the holders of the bonds. The Trustee shall have a lien upon any
    securities or other considerations to which the holders of bonds may become entitled pursuant to any such plan of reorganization
    or readjustment of obligations, or in any such proceeding or proceedings; and the court or judge in any such proceeding or
    proceedings may determine the terms and conditions under which any such lien shall exist and be enforced.	 	 
	 	 	 
	Section
    102. Whenever in the administration of the trusts of this Indenture, prior to a default hereunder and after the curing
    of all defaults which may have occurred, the Trustee shall deem it necessary or desirable that a matter be proved or estab-	 	 

    	 

    	

    

	160	 	 
	 	 	 
	lished prior to taking or suffering any action hereunder, such matter
    (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established
    by a certificate signed by the President or a Vice-President and the Treasurer or an Assistant Treasurer of the Company and
    delivered to the Trustee, and such certificate shall be full warrant to the Trustee for any action taken or suffered by it
    under the provisions of this Indenture upon the faith thereof.	 	 
	 	 	 
	Section
    103. Whenever it is provided in
    this Indenture that the Trustee shall take any action upon the happening of a specified event or upon the fulfillment of any
    condition or upon the request of the Company or of bondholders, the Trustee taking such action shall have full power to give
    any and all notices and to do any and all acts and things incidental to such action.	 	 
	 	 	 
	Section
    104. (a) If the Trustee has or acquires any conflicting
    interest, as defined by subsection (d) of this Section, the Trustee shall, within ninety (90) days after ascertaining that
    it has such conflicting interest, either eliminate such conflicting interest or resign by giving written notice to the Company,
    but such resignation shall not become effective until the appointment of a successor trustee and such successor’s acceptance
    of such appointment. The Company covenants to take prompt steps to have a successor appointed in the manner hereinafter provided
    in Section 108. Upon giving such notice of resignation, the resigning Trustee shall publish notice thereof in one daily newspaper
    printed in the English language and of general circulation in the Borough of Manhattan, The City of New York, and in one daily
    newspaper printed in the English language and of general circulation in each of the cities in which the principal of any of
    the bonds shall be payable, once in each of three (3) successive calendar weeks, in each case on any business day of the week.
    If the resigning Trustee fails to publish such notice within ten (10) days after giving written notice of its resignation
    to the Company, the Company shall publish such notice.	 	 

    	 

    	

    

	161	 	 
	 	 	 
	(b) In the event that the Trustee
    shall fail to comply with the provisions of the preceding subsection (a) of this Section, the Trustee shall, within ten (10)
    days after the expiration of such ninety (90) day period, transmit notice of such failure to the bondholders, in the manner
    and to the extent provided in subsection (c) of Section 51 with respect to reports pursuant to subsection (a) of Section
    51.	 	 
	 	 	 
	(c) Subject to the provisions
    of Section 120, any bondholder who has been a bona fide holder of a bond or bonds for at least six (6) months may, on behalf
    of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee
    and the appointment of a successor, if the Trustee fails, after written request therefor by such holder, to comply with the
    provisions of subsection (a) of this Section.	 	 
	 	 	 
	(d) The Trustee shall be deemed
    to have a conflicting interest if—	 	 
	 	 	 
	(1) the Trustee is trustee under
    another indenture under which any other securities, or certificates of interest or participation in any other securities,
    of an obligor upon the bonds are outstanding, except as otherwise provided in paragraph (1) of subsection (b) of Section 310
    of the Trust Indenture Act of 1939;	 	 
	 	 	 
	(2) the Trustee or any of its
    directors or executive officers is an obligor upon the bonds or an underwriter for such an obligor;	 	 
	 	 	 
	(3) the Trustee directly or indirectly
    controls, or is directly or indirectly controlled by, or is under direct or indirect common control with, an obligor upon
    the bonds or an underwriter for such an obligor;	 	 
	 	 	 
	(4) the Trustee or any of its
    directors or executive officers is a director, officer, partner, employee, appointee or representative of an obligor upon
    the bonds, or of an underwriter (other than the Trustee itself) for such an obligor who is currently engaged in the business
    of under-	 	 

    	 

    	

    

	162	 	 
	 	 	 
	writing, except that (A) one individual may be a
    director and/or an executive officer of the Trustee and a director and/or an executive officer of such obligor, but may not
    be at the same time an executive officer of both the Trustee and of such obligor; (B) if and so long as the number of directors
    of the Trustee in office is more than nine, one additional individual may be a director and/or an executive officer of the
    Trustee and a director of such obligor; and (C) the Trustee may be designated by any such obligor or by any underwriter for
    any such obligor to act in the capacity of transfer agent, registrar, custodian, paying agent, fiscal agent, escrow agent
    or depositary or in any other similar capacity or, subject to the provisions of paragraph (1) of this subsection, to act as
    trustee whether under an indenture or otherwise;	 	 
	 	 	 
	(5) ten per centum (10%) or more
    of the voting securities of the Trustee is beneficially owned either by an obligor upon the bonds or by any director, partner
    or executive officer thereof, or twenty per centum (20%) or more of such voting securities is beneficially owned, collectively,
    by any two or more of such persons; or ten per centum (10%) or more of the voting securities of the Trustee is beneficially
    owned either by an underwriter for any such obligor or by any director, partner or executive officer thereof, or is beneficially
    owned, collectively, by any two or more such persons;	 	 
	 	 	 
	(6) the Trustee is the beneficial
    owner of, or holds as collateral security for an obligation which is in default, (A) five per centum (5%) or more of the voting
    securities or ten per centum (10%) or more of any other class of security of an obligor upon the bonds, not including the
    bonds issued under this Indenture and securities issued under any other indenture under which the Trustee is also trustee,
    or (B) ten per centum (10%) or more of any class of security of an underwriter for any such obligor;	 	 

    	 

    	

    

	163	 	 
	 	 	 
	(7) the Trustee is the beneficial
    owner of, or holds as collateral security for an obligation which is in default, five per centum (5%) or more of the voting
    securities of any person who, to the knowledge of the Trustee, owns ten per centum (10%) or more of the voting securities
    of, or controls directly or indirectly, or is under direct or indirect common control with, an obligor upon the bonds;	 	 
	 	 	 
	(8) the Trustee is the beneficial
    owner of, or holds as collateral security for an obligation which is in default, ten per centum (10%) or more of any class
    of security of any person who, to the knowledge of the Trustee, owns fifty per centum (50%) or more of the voting securities
    of an obligor upon the bonds; or	 	 
	 	 	 
	(9) the Trustee
    owns on May 15th in any calendar year, in the capacity of executor, administrator, testamentary or inter vivos trustee, guardian,
    committee or conservator, or in any other similar capacity, an aggregate of twenty-five per centum (25%) or more of the voting
    securities, or of any class of security, of any person, the beneficial ownership of a specified percentage of which would
    have constituted a conflicting interest under paragraph (6), (7) or (8) of this subsection. As to any such securities of which
    the Trustee acquired ownership through becoming executor, administrator or testamentary trustee of an estate which included
    them, the provisions of the preceding sentence shall not apply for a period of two (2) years from the date of such acquisition,
    to the extent that such securities included in such estate do not exceed twenty-five per centum (25%) of such voting securities
    or twenty-five per centum (25%) of any such class of security. Promptly after May 15th in each calendar year, the Trustee
    shall make a check of its holdings of such securities in any of the above-mentioned capacities as of May 15th. If the Company
    or any other obligor fails to make payment in full of principal or interest upon the bonds when and as the same become
    due and payable, and such failure continues for thirty (30) days there-	 	18th Supp Ind

    	 

    	

    

	164	 	 
	 	 	 
	after,
    the Trustee shall make a prompt check of its holdings of such securities in any of the above-mentioned capacities as of the
    date of the expiration of such thirty-day period and after such date, notwithstanding the foregoing provisions of this paragraph,
    all such securities so held by the Trustee with sole or joint control over such securities vested in it shall, but only so
    long as such failure shall continue, be considered as though beneficially owned by the Trustee for the purposes of paragraphs
    (6), (7) and (8) of this subsection (d).	 	 
	 	 	 
	The specifications of percentages
    in paragraphs (5) to (9), inclusive, of this subsection shall not be construed as indicating that the ownership of such percentages
    of the securities of a person is or is not necessary or sufficient to constitute direct or indirect control for the purposes
    of paragraph (3) or (7) of this subsection.	 	 
	 	 	 
	For the purposes of paragraphs
    (6), (7), (8) and (9) of this subsection only, (A) the terms “security” and “securities” shall include
    only such securities as are generally known as corporate securities, but shall not include any note or other evidence of indebtedness
    issued to evidence an obligation to repay moneys lent to a person by one or more banks, trust companies or banking firms or
    any certificate of interest or participation in any such note or evidence of indebtedness; (B) an obligation shall be deemed
    to be in default when a default in payment of principal shall have continued for thirty (30) days or more and shall not have
    been cured; and (C) the Trustee shall not be deemed to be the owner or holder of (i) any security which it holds as collateral
    security (as trustee or otherwise) for an obligation which is not in default as above defined, or (ii) any security which
    it holds as collateral security under this Indenture, irrespective of any default hereunder, or (iii) any security which it
    holds as agent for collection, or as custodian, escrow agent or depositary, or in any similar representative capacity.	 	 
	 	 	 
	The percentages of voting securities and other securities
    speci-	 	 

    	 

    	

    

	165	 	 
	 	 	 
	fied in this Section shall be calculated in accordance
    with the following provisions:	 	 
	 	 	 
	(A) A specified
    percentage of the voting securities of the Trustee, the Company or any other person referred to in this Section (each of whom
    is referred to as a “person” in this paragraph) means such amount of the outstanding voting securities of such
    person as entitles the holder or holders thereof to cast such specified percentage of the aggregate votes which the holders
    of all the outstanding voting securities of such person are entitled to cast in the direction or management of the affairs
    of such person.	 	 
	 	 	 
	(B) A specified
    percentage of a class of securities of a person means such percentage of the aggregate amount of securities of the class outstanding.	 	 
	 	 	 
	(C) The term
    “amount”, when used in regard to securities, means the principal amount if relating to evidences of indebtedness,
    the number of shares if relating to capital shares and the number of units if relating to any other kind of security.	 	 
	 	 	 
	(D) The term
    “outstanding” means issued and not held by or for the account of the issuer. The following securities shall not
    be deemed outstanding within the meaning of this definition:	 	 
	 	 	 
	(1) Securities
    of an issuer held in a sinking fund relating to securities of the issuer of the same class;	 	 
	 	 	 
	(2) Securities
    of an issuer held in a sinking fund relating to another class of securities of the issuer, if the obligation evidenced by
    such other class of securities is not in default as to principal or interest or otherwise;	 	 
	 	 	 
	(3) Securities
    pledged by the issuer thereof as security for an obligation of the issuer not in default as to principal or interest or otherwise;	 	 

    	 

    	

    

	166	 	 
	 	 	 
	(4) Securities
    held in escrow if placed in escrow by the issuer thereof;	 	 
	 	 	 
	provided, however, that any
    voting securities of an issuer shall be deemed outstanding if any person other than the issuer is entitled to exercise the
    voting rights thereof.	 	 
	 	 	 
	(E) A security
    shall be deemed to be of the same class as another security if both securities confer upon the holder or holders thereof substantially
    the same rights and privileges; provided, however, that, in the case of secured evidences of indebtedness, all of which are
    issued under a single indenture, differences in the interest rates or maturity dates of various series thereof shall not be
    deemed sufficient to constitute such series different classes; and provided, further, that, in the case of unsecured evidences
    of indebtedness, differences in the interest rates or maturity dates thereof shall not be deemed sufficient to constitute
    them securities of different classes, whether or not they are issued under a single indenture.	 	 
	 	 	 
	For the purposes
    of this Section, the term “voting security” means any security presently entitling the owner or holder thereof
    to vote in the direction or management of the affairs of a person, or any security issued under or pursuant to any trust,
    agreement or arrangement whereby a trustee or trustees or agent or agents for the owner or holder of such security are presently
    entitled to vote in the direction or management of the affairs of a person; the term “director” means any director
    of a corporation, or any individual performing similar functions with respect to any organization whether incorporated or
    unincorporated; the term “executive officer” means the president, every vice-president, every trust officer,
    the cashier, the secretary and the treasurer of a corporation, and any individual customarily performing similar functions
    with respect to any organization whether incorporated or unincorporated, but shall not include the chairman of the board of
    directors; and the term “underwriter” when used with reference to an obligor upon the bonds means every person,
    who, within	 	 

    	 

    	

    

	167	 	 
	 	 	 
	three (3)
    years prior to the time as of which the determination is made, has
    purchased from such obligor with a view to, or has offered or has
    sold for such obligor in connection with, the distribution of any security of such obligor outstanding at such time, or has
    participated or has had a direct or indirect participation in any such undertaking, or has participated or has had a participation
    in the direct or indirect underwriting of any such undertaking, but such term shall not include a person whose interest was
    limited to a commission from an underwriter or dealer not in excess of the usual and customary distributors’ or sellers’
    commission.	 	18th
    Supp Ind
	 	 	 
	If
    a separate or co-trustee is appointed pursuant to Section 109, the provisions of this Section which have been made specifically
    applicable to the Trustee shall also apply to such separate or co-trustee, except that,
    in case of the resignation of a separate or co-trustee, such resignation and the appointment
    of a successor shall (subject to the provisions of subsection (c) of this Section) be governed by the provisions of paragraph
    (3) of Section 110.	 	 
	 	 	 
	Section
    105. (a) Subject to the provisions of subsection (b) of
    this Section, if the Trustee shall be or shall become a creditor, directly or indirectly, secured or unsecured, of an obligor
    upon the bonds within four (4) months prior to a default (as defined in the last paragraph of this subsection), or subsequent
    to such a default, then, unless and until such default shall be cured, the Trustee shall set apart and hold in a special account
    for the benefit of the Trustee individually, the holders of the bonds and the holders of other indenture securities (as defined
    in the last paragraph of this subsection)	 	 
	 	 	 
	(1)
    an amount equal to any and all reductions in the amount due and owing upon any claim as such creditor in respect of principal
    or interest effected after the beginning of such four (4) months’ period and valid
    as against such obligor and its other creditors, except any such reduction resulting from the receipt or disposition of any
    property described in paragraph (2) of this subsection, or from the exercise of any right of set-off which the Trustee could
    have	 	 

    	 

    	

    

	168	 	 
	 	 	 
	exercised if a petition in bankruptcy had been filed by or against such obligor
    upon the date of such default; and	 	 
	 	 	 
	(2)
    all property received in respect of any claim as such creditor, either as security therefor,
    or in satisfaction or composition thereof, or otherwise, after the beginning of such four (4) months’
    period, or an amount equal to the proceeds of any such property, if disposed of, subject, however, to the rights, if any,
    of such obligor and its other creditors in such property or such proceeds.	 	 
	 	 	 
	Nothing
    herein contained, however, shall affect the right of the Trustee	 	 
	 	 	 
	(A) to retain for its own account (i) payments made on account of any such claim by any person (other than such obligor)
    who is liable thereon, and (ii) the proceeds of the bona fide sale of any such claim by the Trustee to a third person, and
    (iii) distributions made in cash, securities or other property in respect of claims filed against such obligor in bankruptcy
    or receivership or in proceedings for reorganization pursuant to the Bankruptcy Act or applicable State law;	 	 
	 	 	 
	(B)
    to realize, for its own account, upon any property held by it as security for any such claim, if
    such property was so held prior to the beginning of such four (4) months’ period;	 	 
	 	 	 
	(C)
    to realize, for its own account, but only to the extent of the claim hereinafter mentioned, upon
    any property held by it as security for any such claim, if such claim was created after the beginning of such four (4) months’
    period and such property was received as security therefor simultaneously with the creation thereof,
    and if the Trustee shall sustain the burden of proving that at the time such property was so received the Trustee had no reasonable
    cause to believe that a default as defined in the last paragraph of this subsection would occur within four (4) months; or	 	 

    	 

    	

    

	169	 	 
	 	 	 
	(D)
    to receive payment on any claim referred to in paragraph (B) or (C), against the release of any property held as security
    for such claim as provided in paragraph (B) or (C), as the case may be, to the extent of the fair value of such property.	 	 
	 	 	 
	For the purposes of paragraphs (B), (C) and (D), property substituted after the beginning of such four (4) months’ period for
property held as security at the time of such substitution shall, to the extent of the fair value of the property released, have
the same status as the property released, and, to the extent that any claim referred to in any of such paragraphs is created in
renewal of or in substitution for or for the purpose of repaying or refunding any preexisting claim of the Trustee as such creditor,
such claim shall have the same status as such preexisting claim.	 	 
	 	 	 
	If
        the Trustee shall be required to account, the funds and property held in such special account and the proceeds thereof
        shall be apportioned between the Trustee, the bondholders and the holders of other indenture securities in such manner
        that the Trustee, the bondholders and the holders of other indenture securities realize, as a result of payments from
        such special account and payments of dividends on claims filed against such obligor in bankruptcy or receivership or in
        proceedings for reorganization pursuant to the Bankruptcy Act or applicable State law, the same percentage of their respective
        claims, figured before crediting to the claim of the Trustee anything on account of the receipt by it from such obligor
        of the funds and property in such special account and before crediting to the respective claims of the Trustee, the bondholders
        and the holders of other indenture securities dividends on claims filed against such obligor in bankruptcy or receivership
        or in proceedings for reorganization pursuant to the Bankruptcy Act or applicable State law, but after crediting thereon
        receipts on account of the indebtedness represented by their respective claims from all sources other than from such dividends
        and from the funds and property so held in such special account. As used in this paragraph, with respect to any claim,
        the term “dividends” shall include any distribution with respect
	 	 

    	 

    	

    

	170	 	 
	 	 	 
	to such claim, in bankruptcy or receivership
    or in proceedings for reorganization pursuant to the Bankruptcy Act or applicable State law, whether such distribution is
    made in cash, securities or other property, but shall not include any such distribution with respect to the secured portion,
    if any, of such claim. The court in which such bankruptcy, receivership or proceeding for reorganization is pending shall
    have jurisdiction (i) to apportion between the Trustee, the bondholders and the holders of other indenture securities, in
    accordance with the provisions of this paragraph, the funds and property held in such special account and the proceeds thereof,
    or (ii) in lieu of such apportionment, in whole or in part, to give to the provisions of this paragraph due consideration
    in determining the fairness of the distributions to be made to the Trustee, the bondholders and the holders of other indenture
    securities, with respect to their respective claims, in which event it shall not be necessary to liquidate or to appraise
    the value of any securities or other property held in such special account or as security for any such claim, or to make a
    specific allocation of such distributions as between the secured and unsecured portions of such claims, or otherwise to apply
    the provisions of this paragraph as a mathematical formula.	 	 
	 	 	 
	Any Trustee who has resigned or
    been removed after the beginning of such four (4) months’ period shall be subject to the provisions of this subsection
    as though such resignation or removal had not occurred. If any Trustee has resigned or been removed prior to the beginning
    of such four (4) months’ period, it shall be subject to the provisions of this subsection if and only if the following
    conditions exist—	 	 
	 	 	 
	(i) the receipt
    of property or reduction of claim which would have given rise to the obligation to account, if such Trustee had continued
    as trustee, occurred after the beginning of such four (4) months’ period ; and	 	 
	 	 	 
	(ii) such
    receipt of property or reduction of claim occurred within four (4) months after such resignation or removal.	 	 

    	 

    	

    

	171	 	 
	 	 	 
	As used in this Section, the term “default” means
    any failure to make payment in full of the principal of or interest upon the bonds or upon the other indenture securities
    when and as such principal or interest becomes due and payable; and the term “other indenture securities” means
    securities upon which an obligor upon the bonds is an obligor (as defined in the Trust Indenture Act of 1939) outstanding
    under any other indenture (a) under which the Trustee is also trustee, (b) which contains provisions substantially similar
    to the provisions of this subsection, and (c) under which a default exists at the time of the apportionment of the funds and
    property held in said special account.	 	 
	 	 	 
	(b) There shall be excluded from the operation of subsection (a) of this Section
    a creditor relationship arising from—	 	 
	 	 	 
	(1) the ownership or acquisition of securities issued
    under any indenture, or any security or securities having a maturity of one year or more at the time of acquisition by the
    Trustee;	 	 
	 	 	 
	(2) advances authorized by a receivership or bankruptcy
    court of competent jurisdiction or by this Indenture for the purpose of preserving the property subject to the lien of this
    Indenture or of discharging tax liens or other prior liens or encumbrances on the trust estate, if notice of such advance
    and of the circumstances surrounding the making thereof is given to the bondholders as provided in subsections (a), (b) and
    (c) of Section 51 with respect to advances by the Trustee as such;	 	 
	 	 	 
	(3) disbursements made in the ordinary course of business
    in the capacity of trustee under an indenture, transfer agent, registrar, custodian, paying agent, fiscal agent or depositary,
    or other similar capacity;	 	 
	 	 	 
	(4) an indebtedness created as a result of services rendered
    or premises rented; or an indebtedness created as a result of goods or securities sold in a cash transaction as defined in
    the last paragraph of this subsection;	 	 

    	 

    	

    

	172	 	 
	 	 	 
	(5) the ownership of stock or of other
    securities of a corporation organized under the provisions of Section 25 (a) of the Federal Reserve Act, as amended, which
    is directly or indirectly a creditor of an obligor upon the bonds; or	 	 
	 	 	 
	(6) the acquisition, ownership, acceptance or negotiation
    of any drafts, bills of exchange, acceptances or obligations which fall within the classification of self-liquidating paper
    as defined in the last paragraph of this subsection.	 	 
	 	 	 
	As used in this subsection (b), the
    term “security” shall have the meaning assigned to such term in the Securities Act of 1933, as amended and
    in force on the date of the qualification of this Indenture under the Indenture Act of 1939; the term “cash
    transaction” shall mean any transaction in which full payment for goods or securities sold is made within seven (7)
    days after delivery of the goods or securities in currency or in checks or other orders drawn upon banks or bankers and
    payable upon demand; the term “self-liquidating paper” shall mean any draft, bill of exchange, acceptance
    or obligation which is made, drawn, negotiated or incurred by an obligor upon the bonds for the purpose of financing the
    purchase, processing, manufacture, shipment, storage or sale of goods, wares or merchandise and which is secured by documents
    evidencing title to, possession of or a lien upon the goods, wares or merchandise or the receivables or proceeds arising from
    the sale of the goods, wares or merchandise previously constituting the security, provided the security is received by the
    Trustee simultaneously with the creation of the creditor relationship with such obligor arising from the making, drawing,
    negotiating or incurring of the draft, bill of exchange, acceptance or obligation; and the term “Trustee” shall
    include any separate or co-trustee appointed pursuant to Section 109.	 	18th Supp Ind
	 	 	 
	Section
    106. The Trustee may at any time resign and be discharged of the trusts hereby created by giving written notice to
    the Company specifying the day upon which such resignation shall take effect and thereafter publishing notice thereof in one
    daily newspaper printed in the English language and of general cir-	 	 

    	 

    	

    

	173	 	 
	 	 	 
	culation in the Borough of Manhattan, The City of New York, and in one daily newspaper
    printed in the English language and of general circulation in each of the cities in which the principal of any of the bonds
    shall be payable, once in each of three (3) successive calendar weeks, in each case on any business day of the week, and such
    resignation shall take effect upon the day specified in such notice unless previously a successor trustee shall have been
    appointed by the bondholders or the Company in the manner hereinafter provided in Section 108, and in such event such resignation
    shall take effect immediately on the appointment of such successor trustee. This Section shall not be applicable to resignations
    pursuant to Section 104.	 	 
	 	 	 
	Section
    107. The Trustee may be removed at any time by an instrument or concurrent instruments in writing filed with the Trustee
    and signed and acknowledged by the holders of a majority in principal amount of the bonds then outstanding or by their attorneys-in-fact
    duly authorized.	 	 
	 	 	 
	In case at any time the Trustee shall cease to be eligible in accordance with
    the provisions of Section 91, then the Trustee shall resign immediately in the manner and with the effect specified in Section
    106; and, in the event that the Trustee does not resign immediately in such case, then it may be removed forthwith by an instrument
    or concurrent instruments in writing filed with the Trustee and either (a) signed by the President or a Vice-President of
    the Company with its corporate seal attested by the Secretary or an Assistant Secretary of the Company or (b) signed and acknowledged
    by the holders of a majority in principal amount of the bonds then outstanding or by their attorneys-in-fact duly authorized.	 	 
	 	 	 
	Section
    108. In case at any time the Trustee shall resign or shall be removed (unless the Trustee shall be removed as provided
    in subsection (c) of Section 104 in which event the vacancy shall be filled as provided in said subsection) or shall become
    incapable of acting, or shall be adjudged a bankrupt or insolvent,	 	 

    	 

    	

    

	174	 	 
	 	 	 
	or if a receiver of the Trustee or of its property shall be appointed, or if any
    public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation,
    conservation or liquidation, a vacancy shall be deemed to exist in the office of Trustee, and a successor or successors may
    be appointed by the holders of a majority in principal amount of the bonds then outstanding hereunder, by an instrument or
    concurrent instruments in writing signed and acknowledged by such bondholders or by their attorneys-in-fact duly authorized,
    and delivered to such new trustee, notification thereof being given to the Company and the retiring trustee; provided, nevertheless,
    that until a new trustee shall be appointed by the bondholders as aforesaid, the Company, by instrument executed by order
    of its Board of Directors and duly acknowledged by its President or a Vice-President, may appoint a trustee to fill such vacancy
    until a new trustee shall be appointed by the bondholders as herein authorized. The Company shall publish notice of any such
    appointment made by it in the manner provided in Section 106. Any new trustee appointed by the Company shall, immediately
    and without further act, be superseded by a trustee appointed by the bondholders, as above provided, if such appointment by
    the bondholders be made prior to the expiration of one year after the first publication of notice of the appointment of the
    new trustee by the Company.	 	 
	 	 	 
	If in a proper case no appointment of a successor trustee shall be made pursuant
    to the foregoing provisions of this Section within six (6) months after a vacancy shall have occurred in the office of Trustee,
    the holder of any bond outstanding hereunder or any retiring trustee may apply to any court of competent jurisdiction to appoint
    a successor trustee. Said court may thereupon after such notice, if any, as such court may deem proper and prescribe, appoint
    a successor trustee.	 	 
	 	 	 
	If the Trustee resigns because of a conflict of interest as provided in subsection
    (a) of Section 104 and a successor has not been appointed by the Company or the bondholders or, if appointed, has not accepted
    the appointment within thirty (30) days	 	 

    	 

    	

    

	175	 	 
	 	 	 
	after the date of such resignation, the resigning trustee may apply to any court
    of competent jurisdiction for the appointment of a successor trustee.	 	 
	 	 	 
	Any trustee appointed under the provisions of this Section in succession to
    the Trustee shall be a bank or trust company eligible under Sections 46 and 91 and qualified under Section 104.	 	 
	 	 	 
	Any trustee which has resigned or been removed shall nevertheless retain the
    lien upon the trust estate, including all property or funds held or collected by the trustee as such, to secure the amounts
    due to such trustee as compensation, reimbursement, expenses and indemnity, afforded to it by Section 100 and retain the rights
    afforded to it by Section 101.	 	 
	 	 	 
	Section
    109. At any time or times, for the
    purpose     of conforming to any legal requirements, restrictions or conditions in any State or jurisdiction in which any
    part of the     mortgaged and pledged property then subject to this Indenture may be located, the Company and the Trustee
    shall have power     to appoint, and, upon the request of the Trustee, the Company shall for such purpose join with the
    Trustee in the execution,     delivery and performance of all instruments and agreements necessary or proper to appoint,
    another corporation or one or more     persons approved by the Trustee, to act either as separate trustee or trustees, or as
    co-trustee or co-trustees jointly with     the Trustee, of all or any of the property subject to the lien hereof. In the
    event that the Company shall not have joined     in such appointment within fifteen (15) days after the receipt by it of a
    request so to do, the Trustee alone shall have power     to make such appointment.	 	 
	 	 	 
	Section
    110. Every separate trustee, every co-trustee and every successor trustee, other than any trustee which may be appointed
    as successor to First National Bank in Dallas, shall, to the extent permitted by law, but to such extent only, be appointed
    subject to the following provisions and conditions, namely:	 	 
	 	 	 
	(1) The rights, powers, duties and obligations conferred
    or imposed upon trustees hereunder or any of them shall be	 	 

    	 

    	

    

	176	 	 
	 	 	 
	conferred or imposed upon and exercised or performed by the Trustee or by the Trustee
    and such separate trustee or separate trustees or co-trustee or co-trustees jointly, as shall be provided in the supplemental
    indenture appointing such separate trustee or separate trustees or co-trustee or co-trustees, except to the extent that under
    any law of any jurisdiction in which any particular act or acts are to be performed the Trustee shall be incompetent or unqualified
    to perform such act or acts, in which event such rights, powers, duties and obligations shall be exercised and performed by
    such separate trustee or separate trustees or co-trustee or co-trustees.	 	 
	 	 	 
	(2) The bonds secured hereby shall be authenticated and delivered, and all
    powers, duties, obligations and rights, conferred upon the Trustee in respect of the custody of all bonds and other securities
    and of all cash pledged or deposited hereunder, shall be exercised solely by First National Bank in Dallas, or its successor
    in the trust hereunder.	 	 
	 	 	 
	(3) The Company and the Trustee, at any time by an instrument in writing executed
    by them jointly, may accept the resignation of or remove any separate trustee or co-trustee appointed under Section 109 or
    otherwise, and, upon the request of the Trustee, the Company shall, for such purpose, join with the Trustee in the execution,
    delivery and performance of all instruments and agreements necessary or proper to make effective such resignation or removal.
    In the event that the Company shall not have joined in such action within fifteen (15) days after the receipt by it of a request
    so to do, the Trustee alone shall have power to accept such resignation or to remove any such separate trustee or co-trustee.
    A successor to a separate trustee or co-trustee so resigned or removed may be appointed in the manner provided in Section
    109.	 	 
	 	 	 
	(4) No trustee hereunder shall be personally liable by reason of any act or
    omission of any other trustee hereunder.	 	 

    	 

    	

    

	177	 	 
	 	 	 
	Section
        111. Any notice, request or other writing, by or on behalf of the holders of the bonds, delivered to First National
        Bank in Dallas, or its successor in the trust hereunder, shall be deemed to have been delivered to all of the then trustees
        or cotrustees as effectually as if delivered to each of them. Every instrument appointing any trustee or trustees other
        than a successor to First National Bank in Dallas shall refer to this Indenture and the conditions in this Article expressed,
        and upon the acceptance in writing by such trustee or trustees or co-trustee or co-trustees, he, they or it shall be vested
        with the estates or property specified in such instrument, either jointly with First National Bank in Dallas, or its successor,
        or separately, as may be provided therein, subject to all the trusts, conditions and provisions of this Indenture; and
        every such instrument shall be filed with First National Bank in Dallas, or its successor in the trust hereunder.

         

        Section
        112. Any separate trustee or trustees, or any co-trustee or co-trustees, may at any time by an instrument in writing
        constitute First National Bank in Dallas, or its successor in the trust hereunder, his, their or its agent or attorney-in-fact,
        with full power and authority, to the extent which may be permitted by law, to do all acts and things and exercise all
        discretion authorized or permitted by him, them or it, for and in behalf of him, them or it, and in his, their or its
        name. In case any separate trustee or trustees or co-trustee or co-trustees, or a successor to any of them, shall die,
        become incapable of acting, resign or be removed, all the estates, property, rights, powers, trusts, duties and obligations
        of said separate trustee or co-trustee, so far as permitted by law, shall vest in and be exercised by First National Bank
        in Dallas, or its successor in the trust hereunder, without the appointment of a new trustee or successor to such separate
        trustee or co-trustee.

         

        Section
        113. Any successor trustee appointed hereunder shall execute, acknowledge and deliver to his or its predecessor
        trustee, and also to the Company, an instrument accepting such
	 	 

    	 

    	

    

	178	 	 
	 	 	 
	appointment
        hereunder, and thereupon such successor trustee, without any further act, deed or conveyance, shall become fully vested
        with all the estates, properties, rights, powers, trusts, duties and obligations of his or its predecessor in trust hereunder,
        with like effect as if originally named as trustee herein; but the trustee ceasing to act shall nevertheless, on the written
        request of the Company, or of the successor trustee, or of the holders of ten per centum (10%) in principal amount of
        the bonds then outstanding hereunder, execute, acknowledge and deliver such instruments of conveyance and further assurance
        and do such other things as may reasonably be required for more fully and certainly vesting and confirming in such successor
        trustee all the right, title and interest of the trustee to which he or it succeeds, in and to the mortgaged and pledged
        property and such rights, powers, trusts, duties and obligations, and the trustee ceasing to act shall also, upon like
        request, pay over, assign and deliver to the successor trustee any money or other property subject to the lien of this
        Indenture, including any pledged securities which may then be in his or its possession. Should any deed, conveyance or
        instrument in writing from the Company be required by the new trustee for more fully and certainly vesting in and confirming
        to such new trustee such estates, properties, rights, powers, trusts and duties, any and all such deeds, conveyances and
        instruments in writing shall, on request, be executed, acknowledged and delivered by the Company.

         

        Section
        114. Any corporation into which the Trustee may be merged or with which it may be consolidated or any corporation
        resulting from any merger or consolidation to which the Trustee shall be a party or any corporation to which substantially
        all the business and assets of the Trustee may be transferred, provided such corporation shall be eligible under the provisions
        of Sections 46 and 91 and qualified under Section 104, shall be the successor trustee under this Indenture, without the
        execution or filing of any paper or the performance of any further act on the part of any other parties hereto, anything
        herein to the contrary notwith-
	 	 

    	 

    	

    

	179	 	 
	 	 	 
	standing.
        In case any of the bonds contemplated to be issued hereunder shall have been authenticated but not delivered, any such
        successor to the Trustee may, subject to the same terms and conditions as though such successor had itself authenticated
        such bonds, adopt the certificate of authentication of the original Trustee or of any successor to it as trustee hereunder,
        and deliver the said bonds so authenticated; and in case any of said bonds shall not have been authenticated, any successor
        to the Trustee may authenticate such bonds either in the name of any predecessor hereunder or in the name of the successor
        trustee, and in all such cases such certificate shall have the full force which it is anywhere in said bonds or in this
        Indenture provided that the certificate of the Trustee shall have; provided, however, that the right to authenticate bonds
        in the name of the Trustee shall apply only to its successor or successors by merger or consolidation or sale as aforesaid.

         

        Section
        115. The duties, liabilities, rights, privileges and immunities of the Trustee in relation to the holders of the
        bonds shall be governed exclusively by the laws of the State of Texas.

         

        ARTICLE
        XVII.

         

        Supplemental
        Indentures.

         

        Section
        116. The Company, when authorized by resolution of its Board of Directors, and the Trustee, from time to time and
        at any time, subject to the restrictions in this Indenture contained, may, and when so required by this Indenture shall,
        enter into such indentures supplemental hereto, as may or shall by them be deemed necessary or desirable, for any one
        or more of the purposes hereinbefore provided for and for one or more of the following purposes:

         

        (a)
        To correct the description of any property hereby conveyed or pledged or intended so to be, or to assign, convey, mortgage,
        pledge, transfer and set over unto the Trustee,
	 	 

    	 

    	

    

	180	 	 
	 	 	 
	subject
        to such liens or other encumbrances as shall be therein specifically described, additional property or properties of the
        Company, for the equal and proportionate benefit and security, except as herein otherwise expressly provided, of the holders
        and owners of all bonds at any time issued and outstanding under this Indenture;

         

        (b)
        To add other limitations, to be thereafter observed, to the limitations on the authorized issue and purposes of issue
        of the bonds which may be issued for any of the purposes specified in Articles IV, V and VI hereof; to specify definitive
        limitations on the total authorized issue of any series of bonds issued hereunder; or to add to the covenants or agreements
        of the Company for the protection of the bondholders and of the trust estate;

         

        (c)
        To provide the terms and conditions of redemption of the bonds, and for a special sinking fund for the retirement of the
        bonds of any particular series then about to be issued;

         

        (d)
        To provide additional or other restrictions and limitations upon the issue of any new series of bonds or additional covenants
        and undertakings of the Company with respect thereto;

         

        (e)
        To provide the terms and conditions of the exchange of bonds of one series for bonds of another or other series, or as
        to the exchange of bonds of one denomination for bonds of another denomination, of the same series;

         

        (f)
        To provide that the principal of the bonds of any particular series may be converted at the option of the holders into
        the capital stock or other bonds of the Company, and the terms and conditions of such conversion;

         

        (g)
        To evidence the succession of another corporation to the Company, or successive successions, and the assumption by such
        successor corporation of the covenants and obligations of the Company under this Indenture, and to evidence the succession
        of a new trustee to any trustee hereunder.
	 	 

    	 

    	

    

	181	 	 
	 	 	 
	(h)
    To set forth the form and substance of the bonds, other than Series A, 33⁄4%, Due June 1, 1970, and the terms, provisions
    and conditions thereof;	 	 
	 	 	 
	(i)
    To increase the aggregate
    principal amount of bonds which may be authenticated and delivered and outstanding under this Indenture; provided that at
    least sixty (60) and not more than one hundred eighty (180) days prior to the execution and delivery of the supplemental
    indenture by the Trustee providing for such increase, the Trustee shall mail notice of such proposed increase to each holder
    of any fully registered bond or of any coupon bond registered as to principal at the last address, if any, of such holder
    appearing on the registry books and to each other holder of any bond who shall have filed his name and address with the
    Trustee for such purpose.	 	14th
    Supp Ind
	 	 	 
	(j)
    For any
    other purpose not inconsistent with the terms of this Indenture and which shall not impair the security of the same, including
    the purpose of curing any ambiguity or of curing, correcting or supplementing any defective or inconsistent provision contained
    herein or in any supplemental indenture.	 	 
	 	 	 
	Any
    supplemental indenture authorized by this Section may be executed by the Company and the Trustee without the consent of the
    holders of any of the bonds then outstanding.	 	18th
    Supp Ind
	 	 	 
	Section
    116A. With the consent, evidenced as provided in Article XII, of the holders of
    not less than 66-2/3% in aggregate principal amount of the bonds outstanding hereunder, including the consent of the holders
    of 100% in aggregate principal amount of the Bonds of the 3-3/8% Series, Due October 1, 1974, the 4-3/4% Series Due 1977,
    the 3-3/8% Series, Due March 1, 1979, the 3-1/4% Series Due 1980, the 3% Series Due 1980, the 3-5/8% Series Due 1981, the
    3-3/4% Series Due 1982, the 4-1/8% Series Due 1983, the 3.40% Series Due 1985, the 4-3/4% Series Due 1987, the 5-1/8% Series
    Due 1991, the 4-7/8% Series Due 1992, the 4.40% Series Due 1993, the 4-5/8% Series Due 1994 and the 5-3/8% Series Due 1996,
    the Company, when authorized	 	 

    	 

    	

    

	181a	 	 
	 	 	 
	by
                                         a resolution, and the Trustee may from time to time and at any time
                                         enter into an indenture or indentures supplemental hereto for the purposes of
                                         adding any provision to or changing in any manner or eliminating any of the provisions
                                         of this Indenture or of any supplemental indenture, other than for the purposes provided
                                         for in Section 116; provided,
                                         however, that no such supplemental indenture, without the consent of the holder of each
                                         outstanding bond affected thereby, shall:

         

        (a) extend the fixed
        maturity of any bonds or reduce the principal thereof or reduce the rate or extend the time of payment of interest there-on, or reduce any premium payable upon the redemption
        thereof, or

         

        (b) modify (except to increase the specified percentage) any of the provisions of this Section, or

         

        (c) permit the creation
        of any lien ranking prior to or on a parity with the lien of this Indenture on the mortgaged and pledged property or any
        part thereof except as herein expressly permitted, or

         

        (d) deprive the holder
        of any bond then outstanding of the lien hereby created on the mortgaged and pledged property.

         

        For all purposes of this Section,
bonds shall be deemed to be “affected” by a supplemental indenture, if such supplemental indenture adversely affects
or diminishes the rights of holders thereof against the Company or against its property. The Trustee may in its discretion determine
whether or not any bonds would be affected by any supplemental indenture and any such determination shall be conclusive upon the
holders of all bonds, whether theretofore or there-after authenticated and delivered hereunder. The Trustee shall not be liable for
any such determination made in good faith. 
	 	 

    	 

    	

    

	181b	 	 
	 	 	 
	Upon
                                         the request of the Company, accompanied by a resolution authorizing the execution of
                                         any such supplemental indenture, and upon the filing with the Trustee of evidence of
                                         the consent of bondholders as aforesaid, the Trustee shall join with the Company in the
                                         execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, duties
                                         or immunities under this Indenture or otherwise, in which case the Trustee may in its
                                         discretion but shall not be obligated to enter into such supplemental indenture.

         

        It shall not be necessary for
        the consent of the bondholders under this Section to approve the particular form of any proposed supplemental indenture,
        but it shall be sufficient if such consent shall approve the substance thereof. 

         

        Promptly after the execution
        by the Company and the Trustee of any supplemental indenture under the second paragraph of this Section, the Company shall
        publish a notice, setting forth in general terms the substance of such supplemental indenture, in a daily newspaper in
        each city where the principal of or interest on the outstanding bonds is payable, and shall promptly mail a similar notice,
        first-class postage prepaid, to all registered owners of outstanding bonds affected by such supplemental indenture, but
        such publication shall not be required if all the bonds then outstanding are registered bonds or coupon bonds registered
        as to principal. The validity of any such supplemental indenture, however, shall not be impaired or affected by failure
        to give such notice or by any defect therein. 

         

        Section
117. In each and every case provided for in this Article XVII, the Trustee shall be entitled to exercise its uncontrolled
discretion in determining whether or not any proposed supplemental indenture or any term or provision therein contained is necessary
or desirable, having in view the needs of the Company and the respective rights and interests of the holders of bonds issued and
to be issued hereunder; and the Trustee shall be under no responsibility or liability to the Company or
	 	 

    	 

    	

    

	181c	 	 
	 	 	 
	to
        any holder of any bond, or to anyone whatever, for any act or thing which it may do or decline to do in good faith,
        subject to the provisions of this Article XVII, in the exercise of such discretion. The Trustee shall be entitled to receive
        and shall be fully protected in relying upon a treasurer’s certificate and an opinion of counsel as conclusive evidence
        that any such supplemental indenture complies with the provisions of this Indenture and any indenture supplemental thereto,
        and that it is proper for the Trustee, under the provisions of this Article XVII, to join in the execution of such supplemental
        indenture.

         

        Nothing
        contained in this Section shall be deemed to modify the obligation of the Trustee to exercise after default the rights
        and powers vested in it by this Indenture with the degree of care and skill specified in Section 92.

         

        Section
118. The Trustee is authorized to join with the Company in the execution of any such supplemental indenture, to make the
further agreements and stipulations which may be
	 	 

    	 

    	

    

	182	 	 
	 	 	 
	therein
                                         contained, and to accept the conveyance, transfer and assignment of any property thereunder.
	 	 
	 	 	 
	

        Any
        supplemental indenture executed in accordance with any of the provisions of this
        Article XVII shall comply as to form with the provisions of the Trust Indenture Act of 1939 as then in effect
        and shall thereafter form a part of this Indenture; and all the terms and conditions contained in any such supplemental
        indenture as to any provision authorized to be contained therein shall be part of the terms and conditions of this Indenture
        for any and all purposes, and, if deemed necessary or desirable by the Trustee, any of such terms or conditions may be
        set forth in reasonable and customary manner in the bonds of the particular series to which such supplemental indenture
        shall apply. In case of the execution and delivery of any supplemental indenture, express reference may be made thereto
        in the text of the bonds of any series issued thereafter, if deemed necessary or desirable by the Trustee.

         

        ARTICLE
        XVIII.

         

        Miscellaneous
        Provisions.

         

        Section
        119. All the covenants, stipulations and agreements in this Indenture contained are and shall be for the sole and
        exclusive benefit of the parties hereto, their successors and assigns, and of the holders of the bonds and of the coupons
        hereby secured. If any provision of this Indenture, or the application of any provision to any person or circumstance,
        shall be held invalid or unenforceable, the remainder of this Indenture, or the application of such provision to persons
        or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby.

         

        Section
120. All parties to this Indenture agree, and each holder or owner of any bond by his acceptance thereof shall be deemed
to have agreed, that any court may in its discretion require in any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against the Trustee for any
	 	1st
    Supp Ind

    	 

    	

    

	183	 	 
	 	 	 
	action taken or
    omitted by it as such Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit,
    and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any
    party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such
    party litigant; but the provisions of this Section shall not apply to any suit instituted by the Trustee, to any suit instituted
    by any bondholder, or group of bondholders, holding in the aggregate more than ten per centum (10%) in principal amount of
    the bonds outstanding, or to any suit instituted by any bondholder for the enforcement of the payment of the principal of
    or interest on any bond, on or after the respective due dates expressed in such bond.	 	 
	 	 	 
	Section
    121. If, but only to the extent that, any provision of this Indenture limits,
    qualifies or conflicts with another provision of this Indenture which is required to be included herein by any of Sections
    310 to 317, inclusive, of the Trust Indenture Act of 1939, such required provisions shall control.	 	1st
    Supp Ind
	 	 	 
	Section
    122. Wherever reference is made in this Indenture to the Trust Indenture Act of 1939,
    reference is made to such Act, except in Section 118, as it was in force on the date of the qualification of this
    Indenture     under the Trust Indenture Act of 1939.	 	1st
Supp Ind

        18th
Supp Ind

	 	 	 
	Section
        123. Any notice to the Company under any provision of this instrument shall be sufficiently given if served personally
        upon any officer of the Company or deposited in the mails addressed to the Company at its principal office at Lubbock,
        Texas, or at such other address as may be designated for that purpose in a writing delivered to the Trustee by the Company.

         

        Section
124. Subject to the provisions of Article XV hereof, whenever in this Indenture any of the parties hereto is referred to,
such reference shall be deemed to include the successors and assigns of such party, and all of the covenants, promises and agreements
in this Indenture contained by or on behalf of the
	 	 

    	 

    	

    

	184	 	 
	 	 	 
	Company, or by or on behalf
    of the Trustee, shall bind and inure to the benefit of the respective successors and assigns of such parties, whether so expressed
    or not; but the provisions of this paragraph shall not be deemed to subject to the lien hereof, except to the extent in Article
    XV hereof provided, the property of any successor corporation not acquired from the Company and not then subject to the lien
    hereof, unless it shall have expressly agreed that such shall be the case, in the manner provided in Article XV hereof.	 	 
	 	 	 
	Section
    125. The due date of this Indenture shall be the date of maturity of that series of bonds issued or that may at any
    time hereafter be issued under and secured by this Indenture which, of all the series of bonds issued hereunder, has the latest
    date of maturity; provided, however, that nothing in this Section 125 shall affect or limit any of the rights or remedies
    of the Trustee or the bondholders prescribed in Article XI hereof.	 	 
	 	 	 
	Section
    126. Anything in this Indenture contained notwithstanding, it is expressly declared, understood, agreed and covenanted
    by all of the parties to this Indenture that this Indenture was and is intended to be and shall be a special mortgage and
    hypothecation of the properties, rights, privileges and franchises of the Company, other than the property hereinbefore expressly
    excluded from the lien and provisions of this Indenture, and, without limiting the generality of the foregoing, that the general
    language herein used was and is intended to mortgage, hypothecate, pledge and affect the properties, rights, privileges and
    franchises in the State of Louisiana, herein expressly subjected to the lien of this Indenture, or intended so to be, especially
    all property, real, personal and mixed, corporeal or incorporeal, of the Company, except as aforesaid, in Caddo Parish and
    in Webster Parish, in the State of Louisiana, including all the corporate franchises, rights, contracts, privileges and
    immunities of the Company, except as aforesaid, and also all the right, title, reversions and remainders whatsoever, as well
    in law as in equity, of the Company of, in and to the same or any part thereof, and also all the tolls, rents, revenues, income,	 	9th Supp Ind

    	 

    	

    

	185	 	 
	 	 	 
	products and profits, present and future, of said
    property and of the Company, except as aforesaid, unto and in favor of the Trustee, as well as in favor of any future holder
    or holders of the bonds and/or coupons, securing the payment thereof up to the amount * of Fifty Million Dollars ($50,000,000)
    and all interest to accrue thereon, and also securing all costs, compensation of the Trustee and the Trustee’s
    counsel, and all charges, insurance premiums, expenses and other disbursements whatsoever which the Trustee may make or may
    be required to make under the terms of this Indenture up to the additional amount of Five Hundred Thousand Dollars ($500,000).
    And said property therein described and herein referred to is hereby specially mortgaged, hypothecated, pledged and affected
    in favor of the Trustee, and in favor of every future holder of the bonds and/or coupons, or any of them, securing the payment
    of the same, as well as the fulfillment of any and all covenants of the Company in the premises, so as to make this Indenture
    a mortgage and act of pledge according to the laws of the State of Louisiana, and not an act of sale or conveyance.	 	29th Supp Ind
	 	 	 
	This Indenture may, in the case
    of default as hereinbefore defined, be enforced by seizure and sale or otherwise, as the Trustee shall deem expedient for
    the protection of the bonds secured hereby. The foregoing provisions shall not, however, be construed as modifying any other
    provision of this Indenture as to the conditions upon which the Trustee shall be obligated to enforce any other remedy hereinbefore
    provided for, except to such extent, if any, as such other provision shall at the time be incompatible with the laws of the
    State of Louisiana.	 	 
	 	 	 
	The Trustee is hereby irrevocably
    appointed special agent and representative of the holders of the bonds and vested with full power in their behalf to effect
    and enforce this Indenture for their benefit.	 	 
	 	 	 
	And the Company hereby binds
    and obligates itself and its successors not to transfer, encumber, mortgage, hypothecate or alienate the property hereby mortgaged
    to the prejudice of this Indenture and hereby acknowledges itself indebted unto the Trus-	 	 
	 	 	 
	*N0TE: $50,000,000 changed to $100,000,000 in 14th
    Supp Ind; $100,000,000 changed to $500,000,000 in the 19th Supp Ind; and further amended by the 29th
    Supp Ind as reflected above.	 	 

    	 

    	

    

	186	 	 
	 	 	 
	tee and unto the future holders of the bonds in
    the sum of the aggregate principal amount of the bonds with interest thereon as above provided for, and hereby confesses judgment
    in favor of the Trustee and in favor of all future holders of the bonds, in the event of the bonds not being effectually paid
    when due, for said sum with interest, and all reasonable counsel fees, costs, compensations, charges, insurance premiums and
    other lawful disbursements of the Trustee.	 	 
	 	 	 
	Section
    127. The headings of the different Articles of this Indenture are inserted for convenience of reference, and are not
    to be taken to be any part of these provisions, nor to control or affect the meaning, construction or effect of the same.	 	 
	 	 	 
	Section
    128. This Indenture may be simultaneously executed in any number of counterparts, and all said counterparts, executed
    and delivered each as an original, shall constitute but one and the same instrument.	 	 
	 	 	 
	Section
    129. At the time of the execution and delivery of this Indenture, Three Million Two Hundred Fifty Thousand Dollars
    ($3,250,000) is the principal amount of indebtedness secured by this Indenture, represented by the Three Million Two Hundred
    Fifty Thousand Dollars ($3,250,000) principal amount of bonds of Series A, 33⁄4%, Due June 1, 1970, to be forthwith executed,
    authenticated and delivered pursuant to the provisions of Section 21 hereof.	 	 
	 	 	 
	In
    Witness Whereof, said Southwestern Associated Telephone Company has caused this Indenture to be executed in its corporate
    name by its President or one of its Vice-Presidents and its corporate seal to be hereunto affixed and to be attested by its
    Secretary or one of its Assistant Secretaries, and said First National Bank in Dallas, to evidence its acceptance of the trust
    hereby created, has caused this Indenture to be executed in its corporate name by its President or one of its Vice-Presidents
    and its corporate seal to be hereunto affixed and to be attested	 	 

    	 

    	

    

	187	 	 
	 	 	 
	by its Cashier, in several counterparts, all as of the day and year first
    above written.	 	 
	 	 	 
	Southwestern
    Associated Telephone Company	 	 
	 	 	 
	R. B. Fairly,      	 	 
	President.	 	 
	 	 	 
	[seal]	 	 
	 	 	 
	Attest
    :	 	 
	 	 	 
	J.
    C. Reynolds,	 	 
	                                Secretary.	 	 
	 	 	 
	Executed by Southwestern Associated	 	 
	Telephone Company	 	 
	in the presence of:	 	 
	 	 	 
	Jack
    M. Randal,	 	 
	F.
    A. Robinette,	 	 
	Witnesses.	 	 
	 	 	 
	First
    National Bank in Dallas	 	 
	 	 	 
	B. B. Johnston,       	 	 
	Vice-President.	 	 
	 	 	 
	[seal]	 	 
	 	 	 
	Attest
    :	 	 
	 	 	 
	Paul
    Danna,	 	 
	                          Cashier.	 	 
	 	 	 
	Executed by First National	 	 
	Bank in Dallas in the	 	 
	presence of:	 	 
	 	 	 
	Jack
    M. Randal,	 	 
	F.
    A. Robinette,	 	 
	Witnesses.	 	 

    	 

    	

    

	188	 	 

	 	 	 	 
	State of Texas

    County of Dallas	}	ss.:	 
	 	 	 	 

	Before
    me B. G. Moore, a Notary Public in and for the county and state aforesaid, on
    this 22nd day of July, 1940, personally appeared R. B. Fairly and J. C. Reynolds,
    personally known to me to be, respectively, the President and the Secretary of Southwestern
    Associated Telephone Company, a corporation organized under the laws of the State of Delaware, and personally known
    to me and to me known to be the identical persons who subscribed the name of said Southwestern Associated Telephone Company
    to the foregoing instrument as its President and its Secretary, respectively, and personally known to me to be the persons
    whose names are subscribed to the foregoing instrument as the President and the Secretary of said Corporation, and they each
    acknowledged to me that they executed said instrument as their free and voluntary act and deed and for and on behalf of and
    as the free and voluntary act and deed of said corporation for the uses and purposes and consideration therein expressed and
    set forth.	 	 
	 	 	 
	Given under my hand and seal
    of office this 22nd day of July, 1940.	 	 
	 	 	 
	[seal]	 	 
	 	 	 
	B. G. Moore                  	 	 
	Notary Public, Dallas County, Texas.	 	 
	 	 	 
	My commission expires June 1, 1941.	 	 

    	 

    	

    

	189	 	 

	 	 	 	 
	State of Texas

    County of Dallas	}	ss.:	 
	 	 	 	 

	On
    this 22nd day of July, 1940, before me B. G. Moore, a Notary Public in and for
    the county and state aforesaid, personally appeared R. B. Fairly and J. C. Reynolds,
    to me personally known and known to me to be, respectively, the President and the Secretary of Southwestern
    Associated Telephone Company, a corporation organized and existing under the laws of the State of Delaware, and known
    to me to be the same persons who executed the foregoing instrument, who, being by me duly sworn according to law, did say
    that he, R. B. Fairly, is the President and that he, J. C. Reynolds,
    is the Secretary of said Southwestern Associated Telephone Company, and that the seal affixed to said instrument is the corporate
    seal of said corporation, and that said instrument was signed, sealed and delivered in behalf of said corporation by authority
    of its Board of Directors, and that said R. B. Fairly and J. C. Reynolds
    acknowledged said instrument to be the free act and deed of said corporation and that they executed the same as and
    for said corporation for the consideration and purposes therein mentioned and set forth, and I do hereby so certify.	 	 
	 	 	 
	Given under my hand and seal
    of office this 22nd day of July, 1940.	 	 
	 	 	 
	[seal]	 	 
	B. G. Moore                  	 	 
	Notary Public, Dallas County, Texas.	 	 
	 	 	 
	My commission expires June 1, 1941.	 	 

    	 

    	

    

	190	 	 

	 	 	 	 
	State of Texas

    County of Dallas	}	ss.:	 
	 	 	 	 

	Before
    me J. C. Burleson, a Notary Public in and for the county and state aforesaid,
    on this 22nd day of July, 1940, personally appeared B. B. Johnston and Paul
    Danna, personally known to me to be, respectively, a Vice-President and the Cashier of First
    National Bank in Dallas, a national banking association organized and existing under the laws of the United States
    of America, and personally known to me and to me known to be the identical persons who subscribed the name of said First National
    Bank in Dallas to the foregoing instrument as one of its Vice-Presidents and its Cashier, respectively, and personally known
    to me to be the persons whose names are subscribed to the foregoing instrument as a Vice-President and the Cashier of said
    association, and they each acknowledged to me that they executed said instrument as their free and voluntary act and deed
    and for and on behalf of and as the free and voluntary act and deed of said association for the uses and purposes and consideration
    therein expressed and set forth.	 	 
	 	 	 
	Given under my hand and seal
    of office this 22nd day of July, 1940.	 	 
	 	 	 
	[seal]	 	 
	 	 	 
	J. C. Burleson                  	 	 
	Notary Public, Dallas County, Texas.	 	 
	 	 	 
	My commission expires June 1, 1941.	 	 

    	 

    	

    

	191	 	 

	 	 	 	 
	State of Texas

    County of Dallas	}	ss.:	 
	 	 	 	 

	On
    this 22nd day of July, 1940, before me J. C. Burleson,
    a Notary Public in and for the county and state aforesaid, personally appeared B. B. Johnston
    and Paul Danna,
    to me personally known and known to me to be, respectively, a Vice-President and the Cashier of First
    National Bank in Dallas, a national banking association organized and
    existing under the laws of the United States of America, and known to me to be the same persons who executed the foregoing
    instrument, who, being by me duly sworn according to law, did say that he, B. B. Johnston,
    is a Vice-President, and that he, Paul Danna,
    is the Cashier of said First National Bank in Dallas, and that the seal affixed to said instrument is the corporate
    seal of said association, and that said instrument was signed, sealed and delivered in behalf of said association by authority
    of its Board of Directors, and that said B. B. Johnston
    and Paul Danna
    acknowledged said instrument to be the free act and deed of said association and that they executed the same as and
    for said association for the consideration and purposes therein mentioned and set forth, and I do hereby so certify.	 	 
	 	 	 
	Given under my hand and seal of office this 22nd day
    of July, 1940.	 	 
	 	 	 
	[seal]	 	 
	 	 	 
	J. C. Burleson                  	 	 
	Notary Public, Dallas County, Texas.	 	 
	 	 	 
	My commission expires June 1, 1941.	 	 

    	 

    	

    

	192	 	 
	 	 	 
	Certified
    Copy of Resolution of Stockholders of	 	 
	 	 	 
	SOUTHWESTERN ASSOCIATED TELEPHONE COMPANY	 	 
	 	 	 
	Adopted at
    a Special Meeting Held on May 27, 1940	 	 
	 	 	 
	I, J. C. Reynolds,
    Secretary of Southwestern Associated Telephone Company, hereby certify that at a Special Meeting of the Stockholders
    of said Company, duly held on May 27, 1940, the following resolution was duly adopted by the holders of record of all of the
    outstanding voting stock of the Company:	 	 
	 	 	 
	Resolved,
    that the stockholders of Southwestern Associated Telephone Company do hereby consent to and expressly authorize the
    following:	 	 
	 	 	 
	1. The execution
    and delivery by the Company to First National Bank in Dallas, as Trustee, of an Indenture of Mortgage to be dated June 1,
    1940, and to be substantially in the form of the Indenture this day submitted to this meeting;	 	 
	 	 	 
	2. The conveyance,
    transfer and assignment to said Trustee of substantially all of the property of the Company, now owned or hereafter acquired,
    with the exceptions noted in said Indenture, for the security of the bonds of the Company to be issued thereunder as provided
    in said Indenture;	 	 
	 	 	 
	3. The borrowing
    of money at any time and from time to time upon the security of said Indenture and the issue of bonds of the Company at any
    time and from time to time at the designation of the Board of Directors of the Company, but subject to and in accordance with
    the terms and provisions of said Indenture;	 	 
	 	 	 
	4. The fixing
    by the Board of Directors by appropriate resolution or resolutions, but subject to the terms and provisions of said Indenture,
    of the terms and provisions of the bonds to be issued under said Indenture, and the time and manner of the issue, certification,
    sale and delivery of the said bonds;	 	 

    	 

    	

    

	193	 	 
	 	 	 
	5. The issue
    and sale, upon such terms as the Board of Directors shall approve, of an initial issue of Three Million Two Hundred Fifty
    Thousand Dollars ($3,250,000) principal amount of First Mortgage Bonds, Series A, 33⁄4%, Due June 1,
    1970, of the Company, to be substantially in the form of the Series A Bond set forth in said Indenture.	 	 
	 	 	 
	I further certify that the executed
    Indenture to which this certificate is annexed is the Indenture referred to in the foregoing resolution.	 	 
	 	 	 
	Witness
    my hand and the seal of said Company this 22nd day of July, 1940.	 	 
	 	 	 
	[seal]	 	 
	 	 	 
	J.
    C. Reynolds,      	 	 
	Secretary.	 	 

    	 

    	

    

	194	 	 
	 	 	 
	Certified
    Copy of Resolutions of Board of Directors of	 	 
	 	 	 
	SOUTHWESTERN ASSOCIATED TELEPHONE COMPANY	 	 
	 	 	 
	Adopted at
    a Meeting Held on June 10, 1940	 	 
	 	 	 
	I,
    J. C. Reynolds, Secretary of Southwestern Associated Telephone Company,
    hereby certify that at a Meeting of the Board of Directors of said Company, duly held on June 10, 1940, at which a quorum
    for the transaction of business was present and acting throughout, the following resolutions were unanimously adopted:	 	 
	 	 	 
	Resolved,
    that for the purpose of securing its bonds to be issued thereunder and in accordance with and subject to the terms
    and provisions thereof, this Company do execute and deliver as soon as practicable an Indenture of Mortgage or Deed of Trust
    to be dated June 1, 1940, to First National Bank in Dallas, as Trustee, in the form or in substantially the form of the
    Indenture     of Mortgage or Deed of Trust dated June 1, 1940, this day submitted to this meeting; that by said Indenture the
    Company conveys,     transfers and assigns to said Trustee under said Indenture, for the purposes and subject to all the
    terms and provisions thereof,     substantially all of the property now owned or hereafter acquired by the Company (with the
    exceptions provided in said Indenture); that the form of said Indenture, this day submitted to the meeting (being the
    identical form of the Indenture referred to     in the minutes of the meeting of the stockholders of the Company held on May
    27, 1940), be and it hereby is approved and adopted     with such changes therein as to the officers executing the same may
    deem desirable; that the Company do issue, forthwith,     under and pursuant to the provisions of said Indenture Three
    Million Two Hundred Fifty Thousand Dollars ($3,250,000)     in principal amount of First Mortgage Bonds, Series A,
    33⁄4%, Due June 1, 1970, in coupon or fully registered form; that said     bonds of Series A be dated June 1, 1940,
    payable June 1, 1970, and be in the form and contain the terms, provisions and characteristics     provided in said In-	 	 

    	 

    	

    

	195	 	 
	 	 	 
	denture for the First Mortgage
    Bonds, Series A, 33⁄4%, Due June 1, 1970; and that the forms, respectively, for the coupon bonds of said Series A, and the
    coupons to be attached thereto, the fully registered bonds of said Series A, and the Trustee’s certificate to be endorsed
    on all said bonds of said Series A set forth in said Indenture be and they hereby are approved and adopted with their respective
    provisions; and	 	 
	 	 	 
	Further
    Resolved, that the officers of the Company be and hereby are authorized,
    empowered and directed to execute, acknowledge and deliver said Indenture of Mortgage or Deed of Trust on behalf of the Company
    in the form or in substantially the form of the Indenture this day submitted to this meeting and referred to in the minutes
    of the meeting of the stockholders of the Company held on May 27, 1940, but with such changes, alterations or modifications
    (if any) as may be approved by the officers executing the same; and that the approval by such officers of any such changes,
    alterations or modifications be conclusively proved by the fact of their execution of the Indenture in the form actually executed
    by them; and that the proper officers of the Company are further authorized and directed to execute such documents, take such
    steps and do such things as may be necessary in their judgment to carry out the intent and purposes of this resolution.	 	 
	 	 	 
	I further certify that the executed
    Indenture to which this certificate is annexed is the Indenture referred to in the foregoing resolutions.	 	 
	 	 	 
	Witness
    my hand and the seal of said Company this 22nd day of July, 1940.	 	 
	 	 	 
	[seal]	 	 
	J. C. Reynolds,	 	 
	Secretary.	 	 

    	 

    	

    

	Schedule 1	 	39th Supp Ind
	 	 	 
	GTE
    SOUTHWEST INCORPORATED	 	 
	 	 	 
	Certificate
    in Accordance with the Thirty-Ninth Supplemental Indenture dated as of March 25, 2008, being a supplement to the Indenture
    dated June 1, 1940, as amended and supplemented, made by GTE Southwest Incorporated (formerly General Telephone Company of
    the Southwest, formerly Southwestern Associated Telephone Company) (the “Company”) to The Bank of New York, (Successor
    Trustee to NationsBank of Texas, N.A., successor to NCNB Texas National Bank, formerly First National Bank in Dallas), Trustee	 	 
	 	 	 
	ANNUAL
    CERTIFICATE OF COMPLIANCE REPORTING – YEAR-END 20--	 	 
	 	 	 
	The
    undersigned duly elected officers,_________________________, President (or Chief Financial Officer),
    and_________________, Treasurer (or Assistant Treasurer), of the Company, hereby certify that:	 	 
	 	 	 
	     1.     In
    accordance with provisions of Article V of the Thirty-Ninth Supplemental Indenture, the Company reports that as of year-end
    20___, its records indicate:	 	 
	 	 	 
	- Total Amount of Outstanding
    Bonds	$[                             ]	 	 
	- Net Book Value of Mortgaged and Pledged
    Property	$[                            ]	 	 
	- Percentage of Outstanding Bonds to Net Book
    Value of Mortgaged and Pledged Property	                   [          ]%	 	 
	 	 	 	 
	As
    of year-end 20___, the amount of outstanding bonds does not (or does) exceed 15% of the
    net value of the mortgaged and pledged property (the “Property”) of the Company. Thus, the Streamlined Indenture
    Compliance Reporting of the Annual Certificate of Compliance Reporting and the Alternative Release Provisions, as defined
    and described in the Thirty-Ninth Supplemental Indenture, do (or do not) apply for the reporting year of 20 _____(current
    year).	 	 

 

	2.	In accordance
    with the Trust Indenture Reform Act of 1990, to the best of their knowledge, the Company has complied with each and all of
    the covenants and obligations required of or imposed upon it by the above-referenced Indenture.	 	 
	 	 	 	 
	3.	Per Section 37 of the
    Indenture, the Company has paid all taxes, assessments, charges and other claims (which, if not paid, might be held to be
    secured by a lien or charge prior to the lien of the Indenture), which accrued and became payable during the previous calendar
    year, with the exception of certain municipal fees being disputed by the Company. Any such disputed sums do not endanger the
    lien of the Indenture.	 	 
	 	 	 	 
	4.	Per Section 39 of the
    Indenture, the Company continuously has maintained appropriate amounts of insurance on all the Property.	 	 

    	 

    	

    

	-2-	 	39th
    Supp Ind
	 	 	 	 
	5.	Per Section
    40 of the Indenture, the Company has maintained and kept the Property in thorough working order and condition, has made regular
    charges to expenses for the establishment of reasonably adequate reserves for depreciation, has made all needful and proper
    repairs, retirements, renewals, and replacements thereof, and has promptly classified as retired all Property that has permanently
    ceased to be used or useful in the Company’s business, in accordance with good accounting practice. The Company maintains
    a maintenance credit, as defined in Section 40, of over 25% of the amount of gross operating revenues derived by the Company
    from the Property for the most recently completed calendar year.	 	 
	 	 	 	 
	6.	Per Section 50 of the
    Indenture, the Company is not required to file financial information with the Securities and Exchange Commission. However,
    the Company has maintained financial records in accordance with generally accepted accounting practices and has submitted
    those records to an annual audit by an independent public accountant.	 	 
	 	 	 	 
	7.	The properties released
    from the lien of the Indenture during the calendar year described in this Certificate, 20     (previous calendar year), are as
    follows:	 	 
	 	 	 	 
	 	Release Date                        Address/City/County/State                              Sale
    Amount                                   	 	 
	 	 	 	 
	8.	(A) The undersigned have read
    all the covenants and conditions, and the definitions relevant thereto, contained in the Indenture: (B) the nature and scope
    of the examination or investigation upon which the statements contained in this Certificate are made are based on an examination
    of the records of the Company and an examination of the fundable property of the Company, or inquiries of persons having personal
    knowledge of such fundable property and consultation with counsel: (C) in the opinion of each of the undersigned he has made
    such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenants
    and conditions have been complied with: and (D) in the opinion of each of the undersigned all covenants and conditions of
    said Sections 37, 39, 40 and 50, as amended by the Thirty-Ninth Supplemental Indenture, have been complied with.	 	 
	 	 	 	 

	Dated:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Name:	 	 	Name:	 	 	 
	 	President	 	 	Treasurer	 	 
	 	or Chief Financial Officer	 	 	or Assistant Treasurer	 	 

    	 

    	

    

	 	 	 	39th
    Supp Ind
	 	 	 	 
	 	Schedule
    2	 	 
	 	 	 	 
	 	ALTERNATIVE
    RELEASE CERTIFICATE	 	 
	 	 	 	 
	 	Re:
    Release of Property from the lien of the Indenture

     pursuant to the Alternative Release Provisions under Section 60 of the Indenture	 	 
	 	 	 	 
	The
    undersigned, Trinidad Aguirre, President of GTE Southwest Incorporated (the “Company”), and [Anthony J. Flesch,
    an engineer appointed by the Board of Directors of the Company, being first duly sworn, hereby depose and state that Anthony
    J. Flesch, a practicing engineer as contemplated by the Indenture, is a resident of the State of Texas, that he has had technical
    training and has had extensive experience in engineering of communication lines and equipment, and that he is competent and
    experienced in the operation of public utilities] [_____, an engineer, appraiser or other expert appointed by the Board of Directors of the Company, being duly sworn, hereby depose
    and state that _______ is an engineer, appraiser or other expert that
    has training and experience in the matters certified to in this certificate.].	 	 
	 	 	 	 
	In
    accordance with the provisions of subdivision (3) of the Alternative Release Provisions under Section 60, Article X, of the
    Indenture, they do further certify the Company has contracted to sell certain property particularly described in Exhibit A
    to the Certificate of Approval for Sale of Surplus Property attached hereto, for a cash consideration of [         
    ] Dollars ($[          ]) that:	 	 
	 	 	 	 
	(1)	They
    have read the provisions of Section 60 of the Indenture with respect to release of mortgaged and pledged property;	 	 
	 	 	 	 
	(2)	They
    are familiar with the operation of the Company and the values of the property covered by this certificate;	 	 
	 	 	 	 
	(3)	In
    their opinion their knowledge enables them to express an informed opinion as to the fair value of the described property;	 	 
	 	 	 	 
	(4)	The
    Company has sold, or contracted to sell, the described property for $[           
    ] in cash.	 	 
	 	 	 	 
	(5)	In
    the opinion of the signers of this certificate, the cash consideration of $[           
    ] represents the present fair value of the described property as determined through an independent or in-house appraisal,
    that included a review of the condition, serviceability and general location of the described property;	 	 
	 	 	 	 
	(6)	The
    retention of the described property is no longer desirable in the conduct of the business of the Company and, in the opinion
    of the signers, the release of the described property will not impair the security under the indenture in contravention of
    the provisions thereof;	 	 
	 	 	 	 
	(7)	The
    fair value of the described property to be released from the lien of the Indenture, and all other property released since
    the end of the calendar year covered by the most recent	 	 

    	 

    	

    

	-2-	 	 	 
	 	 	 	 	39th
    Supp Ind
	 	 	 	 	 
	 	Certificate,
    as defined in Article I of the Thirty-Ninth Supplemental Indenture, dated as of March 25, 2008, being a supplemental indenture
    to the Indenture, as set forth in the certificate or certificates furnished to the Trustee in connection with the release
    of property from the lien of the Indenture, is less than ten per centum (10%) of the book value of all property subject to
    the lien of the Indenture as set forth in such Certificate;	 	 	 
	 	 	 	 	 
	(8)	 (a)(i) (A) The fair value of the
    property to be released since the end of the calendar year covered by such Certificate, as set forth in the certificate or
    certificates furnished to the Trustee in connection with the release of property from the lien of the Indenture, is not ten
    per centum (10%) or more of the book value of the total property subject to the lien of the Indenture as set forth in such
    Certificate; or (B) the fair value of the property identified in this certificate to be released from the lien of the Indenture
    is not $25,000 or more or one per centum (1%) or more of the aggregate principal amount of the bonds at the time outstanding:
    and (ii) none of the property additions acquired by the Company during the period covered by this certificate having a fair
    value of $25,000 or more were within the six months prior to the date of acquisition operated by others in a business similar
    to the Company’s: or	 	 	 
	 	 	 	 	 
	 	(b) one of the undersigned is an engineer,
    appraiser or other expert who (i) is in fact independent, (ii) does not have any direct financial interest or any material
    indirect financial interest in the Company or in any other obligor upon the bonds or in any affiliate of the Company or of
    such other obligor, and (iii) is not connected with the Company or such other obligor or any affiliate of the Company or of
    such other obligor, as an officer, employee, promoter, underwriter, trustee, partner, director or person performing similar
    functions pursuant to Section 3 of the Indenture.	 	 	 
	 	 	 	 	 
	(9)	The
    net depreciation accruals computed in the manner provided in Section 5A of the Indenture as of December 31, 20 [  
    ] exceed the maintenance credit computed in the manner provided in Section 7 of the Indenture as of December
    31, 20[     ].	 	 	 
	 	 	 	 	 
	Furthermore,
    in accordance with the Alternative Release Provisions in Section 60 of the Indenture, they do further certify to the Trustee,
    as follows:	 	 	 

	(a)	The
    amount of net property additions as of December 31, 20[   ] [i.e. prior year] stated in subdivision (h) of a prior
    certificate complying with the requirements of paragraph (3) of Section 26 of the Indenture or in subdivision (e) of a prior
    certificate complying with the requirements of the Alternative Release Provisions of Section 60 of the Indenture, as applicable
    	 	 	 	$[           ]
	 	 	 	 	 	 
	(b)	The
    lesser of the cost or fair value of the gross property additions made or acquired by the Company since the termination of
    the period covered by such certificate and up to December 31, [20___] is set forth in detail in Exhibit
    1, attached hereto	 	$[           ]	 	 
	 	 	 	 	 	 
	(c)	The
retirements during the period covered by this certificate, are 	 	$[           ]	 	 

    	 

    	

    

	 	 -3-	 	39th
    Supp Ind

	 	 	 	 	 	 
	(d)	The
    amount of net property additions during the period covered by this certificate is	 	 	 	$[          ]
	 	 	 	 	 	 
	(e)	The
    amount of net property additions as of December 31, [20__], is	 	 	 	$[          ]
	 	 	 	 	 	 
	(f)	The
    amount of unfunded net property additions as of the date of this certificate and the computation thereof in the manner provided
    in Section 7 of the Indenture, is as follows: from the net property additions (subdivision (e) above), there is deducted the
    sum of the following as of the date of this certificate:	 	 	 	 
	 	 	 	 	 	 
	 	(A)
    10/6 of Outstanding Bonds	 	 $166,666,667	 
	 	 	 	 	 	 
	 	and	 	 	 	 
	 	 	 	 	 	 
	 	(B)
    The amount of net depreciation accruals as of December 31, [20__]  (the computation thereof being made as provided in Section
    5A of the Indenture)	 	$[          ]	 	 
	 	 	 	 	 	 
	(g)	Net
    Unused Bondable Additions as of December 31, 20[__]	 	 	 	$[           ]
	 	 	 	 	 	 
	(h)	Property
    previously released in current year	 	 	 	$[         ]
	 	 	 	 	 	 
	(i)	Current
    net unused bondable additions	 	$[          ]	 	 
	 	 	 	 	 	 

	 	 	 
	The properties
    described herein as property additions are property additions as defined in Article I of the Indenture; no portion thereof
    has been included in any other certificate filed with the Trustee complying with the requirements of paragraph (3) of Section
    26 of the Indenture or in any Alternative Release Certificate; the items of property described in this certificate as property
    additions are desirable in the conduct of business of the Company and are not subject to any prior lien; since December 31,
    [20 ], the Company has not made retirements in excess of the sum of the amounts certified in subdivision (f) of this certificate
    and the amount of the gross property additions made since such date; and no portion of the cost of the property additions
    described in this certificate should properly have been charged and no portion has been charged to maintenance or to any other
    expense account.	 	 
	 	 	 
	(1)
    the undersigned have read all the covenants and conditions, and the definitions relevant thereto, contained in the indenture;
    (2) the nature and scope of the examination or investigation upon which the statements contained in this certificate are made
    are based on an examination of the records of the Company and an examination of the fundable property of the Company, or inquiries
    of	 	 

    	 

    	

    
	 	 -4-	 	39th
    Supp Ind

	 	 	 
	persons
    having personal knowledge of such fundable property and consultation with counsel; (3) in the opinion of each of the undersigned
    he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or
    not such covenants and conditions have been complied with; and (4) in the opinion of each of the undersigned such covenants
    and conditions have been complied with.	 	 
	 	 	 
	Dated as of: [         ],
[20     ]	 	 

 

	 	                                                                            	 	 
	 	President                                                     	 	 
	 	 	 	 
	 	[Add one of the following as                        

    appropriate:]                                               	 	 
	 	 	 	 
	 	                                                                             	 	 
	 	[                                             	 	 
	 	Engineer]                                                     	 	 
	 	 	 	 
	 	                                                                            	 	 
	 	Engineer, Appraiser or                                 
    

    other expert]                                                 	 	 
	 	 	 	 
	 	 	 	 
	ACKNOWLEDGED
    BEFORE ME, this           
     day of [        ], [20     ].	 	 
	 	 	 
	 	                                                                            	 	 
	 	                                             	 	 
	 	Notary Public, State of Texas

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