Document:

ex4_1.htm

 

 

 

EXHIBIT 4.1

 

 

 

 

 

 

 

 

 

THE EMPIRE DISTRICT ELECTRIC COMPANY (Grantor)

TO

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. (Grantee)

AND

UMB BANK & TRUST, N.A.

 

Trustees

 

Thirty-Fifth Supplemental Indenture

 

Dated as of May 28, 2010

 

(Supplemental to Indenture dated as of September 1, 1944)

 

$100,000,000

 

First Mortgage Bonds, 4.65% Series due 2020

 

The Empire District Electric Company, 602 S. Joplin Avenue, Joplin, Missouri

 

Legal Description: Pages 7-8 and 12-17

 

 

 

  

  

  

TABLE OF CONTENTS1

 

	  	
PAGE

	  	  
	
PARTIES

	
1

	
RECITALS

	
1

	
FORM OF BOND

	
2

	
FORM OF PRINCIPAL TRUSTEE’S CERTIFICATE OF AUTHENTICATION

	
7

	
GRANTING CLAUSES

	
7

	
PROPERTY NOW OWNED OR HEREAFTER ACQUIRED

	
8

	
SUBJECT TO PERMITTED ENCUMBRANCES, LIENS ON AFTER-ACQUIRED PROPERTY AND CERTAIN VENDOR’S LIENS

	
8

	
HABENDUM

	
8

	
GRANT IN TRUST

	
8

	
DEFEASANCE

	
8

	
GENERAL COVENANT

	
9

ARTICLE I

 

CREATION AND DESCRIPTION OF FIRST MORTGAGE BONDS,

4.65% SERIES DUE 2020

 

	
SECTION 1.

	
New Series of Bonds

	
9

	  	
Bonds to be dated as of authentication date

	
9

	  	
Record Date

	
9

	  	
Restriction on transfer or exchange

	
9

	  	
Denominations

	
9

	  	
Registrable and interchangeable, tax or government charge

	
9

	  	
No service charge on exchange or transfer

	
10

	  	
Book-entry procedures

	
10

	 	 	 
	
SECTION 2.

	
Execution and Authentication of Bonds of the New Series

	
11

 

ARTICLE II

 

OPTIONAL REDEMPTION OF BONDS OF THE NEW SERIES

 

	
SECTION 1.

	
Right of redemption

	
11

	 	 	 
	
SECTION 2.

	
Manner and method of redemption

	
11

	 	 	 
	
SECTION 3.

	
Bondholder agrees to accept payment upon terms of this Article

	
12

 

 

	
1

	
This Table of Contents is not a part of the annexed supplemental Indenture as executed.

 

 

 

  

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ARTICLE III

 

NO SINKING AND IMPROVEMENT FUND FOR BONDS OF THE NEW SERIES

 

	
There shall be no Sinking and Improvement Fund for the Bonds of the New Series.

	
12

 

ARTICLE IV

 

DIVIDENDS AND SIMILAR DISTRIBUTIONS

 

	
Covenants in § 4.11 of the Original Indenture to continue in effect so long as any Bonds of the New Series are outstanding

	
12

 

ARTICLE V

 

THE TRUSTEES

 

	
The Trustees accept the trusts created by this Supplemental Indenture and agree to perform the same upon terms set forth in the Original Indenture as supplemented

	
12

 

ARTICLE VI

 

PROPERTY DESCRIPTION AMENDMENT

 

	
The parties agree to amend the Indenture pursuant to § 14.01(a) to evidence the correction of the legal description of certain property that is currently subject to the lien of the Indenture

	
12

 

ARTICLE VII

 

MISCELLANEOUS PROVISIONS

 

	
Section 1.

	
Provision regarding legal holidays

	
17

	  	  	  
	
Section 2.

	
Original Indenture, as supplemented and amended, ratified and confirmed

	
18

	  	  	  
	
Section 3.

	
This Supplemental Indenture may be executed in counterparts

	
18

	  	  	  
	
Section 4.

	
Rights conferred only on holder of bonds, Company and Trustees

	
18

 

	
TESTIMONIUM

	
19

	  	  
	
SIGNATURES AND SEALS

	
19

	  	  
	
ACKNOWLEDGMENTS

	
22

  

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THIRTY-FIFTH SUPPLEMENTAL INDENTURE, dated as of May 28, 2010, between The Empire District Electric Company, a corporation organized and existing under the laws of the State of Kansas (hereinafter called the “Company”), party of the first part, and The Bank of New York Mellon Trust Company, N.A., a national banking association organized under the laws of the United States of America and located in the State of California with a trust office at 2 N. LaSalle Street, Suite 1020, in the City of Chicago, Illinois, and UMB Bank & Trust, N.A., a national banking association organized and existing under the laws of the United States of America and having its principal corporate trust office in the City of St. Louis, Missouri (hereinafter sometimes called respectively the “Principal Trustee” and the “Missouri Trustee” and together the “Trustees” and each thereof a “Trustee”), as Trustees, parties of the second part.

 

WHEREAS the Company has heretofore executed and delivered to the Trustees its Indenture of Mortgage and Deed of Trust, dated as of September 1, 1944 (hereinafter sometimes referred to as the “Original Indenture”), to secure an issue of First Mortgage Bonds of the Company, issuable in series; and

 

WHEREAS the Company has heretofore executed and delivered to the Trustees thirty-four Supplemental Indentures supplemental to the Original Indenture as follows:

 

	
Title

	
Dated

	  	  
	
First Supplemental Indenture

	
as of June 1, 1946

	
Second Supplemental Indenture

	
as of January 1, 1948

	
Third Supplemental Indenture

	
as of December 1, 1950

	
Fourth Supplemental Indenture

	
as of December 1, 1954

	
Fifth Supplemental Indenture

	
as of June 1, 1957

	
Sixth Supplemental Indenture

	
as of February 1, 1968

	
Seventh Supplemental Indenture

	
as of April 1, 1969

	
Eighth Supplemental Indenture

	
as of May 1, 1970

	
Ninth Supplemental Indenture

	
as of July 1, 1976

	
Tenth Supplemental Indenture

	
as of November 1, 1977

	
Eleventh Supplemental Indenture

	
as of August 1, 1978

	
Twelfth Supplemental Indenture

	
as of December 1, 1978

	
Thirteenth Supplemental Indenture

	
as of November 1, 1979

	
Fourteenth Supplemental Indenture

	
as of September 15, 1983

	
Fifteenth Supplemental Indenture

	
as of October 1, 1988

	
Sixteenth Supplemental Indenture

	
as of November 1, 1989

	
Seventeenth Supplemental Indenture

	
as of December 1, 1990

	
Eighteenth Supplemental Indenture

	
as of July 1, 1992

	
Nineteenth Supplemental Indenture

	
as of May 1, 1993

	
Twentieth Supplemental Indenture

	
as of June 1, 1993

	
Twenty-First Supplemental Indenture

	
as of October 1, 1993

	
Twenty-Second Supplemental Indenture

	
as of November 1, 1993

	
Twenty-Third Supplemental Indenture

	
as of November 1, 1993

	
Twenty-Fourth Supplemental Indenture

	
as of March 1, 1994

	
Twenty-Fifth Supplemental Indenture

	
as of November 1, 1994

	
Twenty-Sixth Supplemental Indenture

	
as of April 1, 1995

	
Twenty-Seventh Supplemental Indenture

	
as of June 1, 1995

	
Twenty-Eighth Supplemental Indenture

	
as of December 1, 1996

	
Twenty-Ninth Supplemental Indenture

	
as of April 1, 1998

	
Thirtieth Supplemental Indenture

	
as of July 1, 1999

  

  

  

	
Thirty-First Supplemental Indenture

	
as of March 26, 2007

	
Thirty-Second Supplemental Indenture

	
as of March 11, 2008

	
Thirty-Third Supplemental Indenture

	
as of May 16, 2008

	
Thirty-Fourth Supplemental Indenture

	
as of March 27, 2009

some for the purpose of creating an additional series of bonds and of conveying additional property of the Company, and some for the purpose of modifying or amending provisions of the Original Indenture (the Original Indenture, all said Supplemental Indentures (other than the Thirtieth Supplemental Indenture, which did not become effective) and this Supplemental Indenture are herein collectively called the “Indenture”); and

 

WHEREAS the Company has acquired certain additional property hereinafter described or mentioned and, in compliance with its covenants in the Original Indenture, desires, by this Thirty-Fifth Supplemental Indenture, to evidence the subjection of such additional property to the lien of the Indenture; and

 

WHEREAS, the Company, in compliance with its covenants in the Original Indenture, desires, by this Thirty-Fifth Supplemental Indenture, to evidence the correction of the legal description of certain property that is currently subject to the lien of the Indenture; and

 

WHEREAS as provided by the Original Indenture, the Board of Directors of the Company, by resolution, has authorized a new series of bonds, to mature on June 1, 2020, and to be designated as “First Mortgage Bonds, 4.65% Series due 2020,” and has authorized provisions permitted by the Original Indenture in respect of the bonds of said series; and

 

WHEREAS the Board of Directors of the Company has authorized the Company to enter into this Thirty-Fifth Supplemental Indenture (herein sometimes referred to as “this Thirty-Fifth Supplemental Indenture” or “this Supplemental Indenture”) conveying to the Trustees and subjecting to the lien of the Indenture the property hereinafter described or mentioned, creating and designating the new series of bonds, and specifying the form and provisions of the bonds of said series provided or permitted by the Original Indenture; and

 

WHEREAS the texts of the First Mortgage Bonds, 4.65% Series due 2020, and of the Principal Trustee’s Certificate of Authentication to be endorsed thereon are to be substantially in the forms following, respectively:

 

[FORM OF BOND]

[FACE]

THE EMPIRE DISTRICT ELECTRIC COMPANY

FIRST MORTGAGE BOND

4.65% SERIES DUE 2020

DUE JUNE 1, 2020

 

	
No. ______

	
$______

 

THE EMPIRE DISTRICT ELECTRIC COMPANY, a corporation organized and existing under the laws of the State of Kansas (hereinafter sometimes called the “Company”), for value received, hereby promises to pay to                                      or registered assigns, on (unless this bond shall have been called for previous redemption and provision made for the payment of the redemption price thereof) June 1, 2020,                Dollars ($       ) at its office or agency in the City of Chicago, Illinois, and to pay

 

  

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interest thereon at said office or agency at the rate of 4.65% per annum from May 28, 2010, or from the most recent interest payment date to which interest has been paid or duly provided for on the bonds of this series, semi-annually on each June 1 and December 1 commencing on December 1, 2010, until the Company’s obligation with respect to such principal sum shall be discharged.  The principal of and the interest on this bond shall be payable in any coin or currency of the United States of America which at the time of payment shall be legal tender for the payment of public and private debts.  The interest so payable on any June 1 or December 1 shall, subject to certain exceptions provided in the Thirty-Fifth Supplemental Indenture referred to on the reverse hereof, be paid to the person in whose name this bond is registered at the close of business on the May 15 or November 15 next preceding such June 1 or December 1.  Notwithstanding anything in the Original Indenture or this Supplemental Indenture to the contrary, so long as the bonds of this series are in a book-entry only system, payment of principal of and interest on this bond shall be in accordance with arrangements with The Depository Trust Company, a limited-purpose trust company under New York State banking law (“DTC”), or any successor securities depositary.

 

Reference is made to the further provisions of this bond set forth on the reverse hereof.  Such provisions shall for all purposes have the same effect as though fully set forth at this place.

 

This bond shall not be valid or become obligatory for any purpose until the certificate of authentication endorsed hereon shall have been signed by The Bank of New York Mellon Trust Company, N.A. or its successor, as a Trustee under the Indenture referred to on the reverse hereof.

 

IN WITNESS WHEREOF, THE EMPIRE DISTRICT ELECTRIC COMPANY has caused this bond to be signed in its name by its President or a Vice President, and its corporate seal to be imprinted hereon and attested by its Secretary or an Assistant Secretary.

 

Dated:

	
THE EMPIRE DISTRICT ELECTRIC COMPANY

 

 

	
By     ___________________________________

          Name:

          Title:

	
Attest:

	
 

_____________________________________

Name:

Title:

  

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[FORM OF BOND]

 

[REVERSE]

 

This bond is one of an issue of bonds of the Company, known as its First Mortgage Bonds, issued and to be issued in one or more series under and equally and ratably secured (except as any sinking, amortization, improvement or other fund, established in accordance with the provisions of the indenture hereinafter mentioned may afford additional security for the bonds of any particular series) by a certain indenture of mortgage and deed of trust, dated as of September 1, 1944, made by the Company to The Bank of New York Mellon Trust Company, N.A. (the “Principal Trustee”) and UMB Bank & Trust, N.A., as Trustees (hereinafter collectively called the “Trustees”), and certain indentures supplemental thereto, including a Third Supplemental Indenture, a Sixth Supplemental Indenture, a Seventh Supplemental Indenture, an Eighth Supplemental Indenture, a Fourteenth Supplemental Indenture, a Twenty-Fourth Supplemental Indenture, a Thirty-Second Supplemental Indenture and a Thirty-Fifth Supplemental Indenture (dated respectively as of December 1, 1950, February 1, 1968, April 1, 1969, May 1, 1970, September 15, 1983, March 1, 1994, March 11, 2008 and May 28, 2010 made by the Company to the Trustees (said indenture of mortgage and deed of trust and all indentures supplemental thereto being hereinafter collectively called the “Indenture”), to which Indenture reference is hereby made for a description of the property mortgaged, the nature and extent of the security, the rights and limitations of rights of the Company, the Trustees, and the holders of said bonds, and the terms and conditions upon which said bonds are secured, to all of the provisions of which Indenture, including the provisions permitting the issuance of bonds of any series for property which, under the restrictions and limitations therein specified, may be subject to liens prior to the lien of the Indenture, the holder, by accepting this bond, assents.  To the extent permitted by, and as provided in, the Indenture, the rights and obligations of the Company and of the holders of said bonds may be changed and modified, with the consent of the Company, by the holders of at least 60% in aggregate principal amount of the bonds then outstanding, such percentage being determined as provided in the Indenture, or in the event that one or more but less than all of the series of bonds then outstanding are affected by such change or modification, by the holders of 60% in aggregate principal amount of the outstanding bonds of such one or more series so affected.  Without the consent of the holder hereof no change or modification of the rights and obligations of the Company and of the holders of the bonds shall be made which will extend the time of payment of the principal of or the interest on this bond or reduce the principal amount hereof or the rate of interest hereon or will otherwise modify the terms of payment of such principal or interest (other than changes in any sinking or other fund) or will permit the creation of any lien ranking prior to or on a parity with the lien of the Indenture on any of the mortgaged property, or will deprive any non-assenting bondholder of a lien upon the mortgaged property for the security of such bondholder’s bonds, subject to certain exceptions, or will reduce the percentage of bonds required for the aforesaid action under the Indenture.  This bond is one of a series of bonds designated as the First Mortgage Bonds, 4.65% Series due 2020, of the Company.

 

The Company may, at its option, redeem some or all of the bonds of this series at any time.  If the Company redeems the bonds of this series prior to their maturity, the Company must pay the holders thereof a redemption price equal to the greater of:

 

(i) 100% of the principal amount of the bonds to be redeemed; and

 

(ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon (not including any portion of such payments of interest accrued as of the date of redemption), discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below), plus 25 basis points.

 

  

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“Comparable Treasury Issue” means the U.S. Treasury security selected by the Quotation Agent as having a maturity comparable to the remaining term of the bonds to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such bonds.

 

“Comparable Treasury Price” means, with respect to any redemption date, (i) if the Trustee obtains four or more Reference Treasury Dealer Quotations, the average of such Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Trustee obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations, or (iii) if only one Reference Treasury Dealer Quotation is received, such quotation.

 

“Quotation Agent” means the Reference Treasury Dealer appointed by us.

 

“Reference Treasury Dealer” means (i) Banc of America Securities LLC (or its respective affiliates that are Primary Treasury Dealers) and its successors; provided, however, that if the foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”), the Company will substitute therefor another Primary Treasury Dealer; and (ii) any other Primary Treasury Dealer selected by the Company.

 

“Reference Treasury Dealer Quotation” means, with respect to any Reference Treasury Dealer and any redemption date, the average of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third business day preceding such redemption date.

 

“Treasury Rate” means, with respect to any redemption date, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price of such redemption date.

 

When the Company redeems bonds, the Company must also pay all interest that has accrued to the redemption date on the redeemed bonds.

 

The Company shall give notice to holders of bonds of this series to be redeemed by first-class mail at least 30 days but not more than 60 days prior to the date fixed for redemption.  The notice of redemption may provide that the redemption is conditioned upon the occurrence of certain events before the date fixed for redemption.  If any of these events fail to occur and are not waived by the Company, the notice of redemption shall be of no effect, the Company will be under no obligation to redeem the bonds of this series or pay the holders any redemption proceeds, and the Company’s failure to so redeem the bonds of this series shall not be considered a default or event of default under the Indenture.  If fewer than all of the bonds of this series are to be redeemed, the Principal Trustee shall select the particular bonds of this series, or portions thereof, for redemption from the outstanding bonds of this series by such method as the Principal Trustee considers fair and appropriate.

 

On and after the redemption date, interest shall cease to accrue on the bonds of this series or any portion of the bonds of this series called for redemption unless, in the case of an unconditional notice of redemption, the Company defaults in the payment of the redemption price and accrued interest.

 

  

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On or before the redemption date, the Company shall deposit with the Principal Trustee money sufficient to pay the redemption price of and accrued interest on the bonds of this series to be redeemed on such date.

 

The principal of this bond may be declared or may become due before the maturity hereof, on the conditions, in the manner and at the times set forth in the Indenture, upon the happening of a default as therein defined.

 

This bond is transferable by the registered owner hereof in person or by his duly authorized attorney at the office or agency of the Company in the City of Chicago, Illinois, upon surrender and cancellation of this bond, and thereupon a new bond of this series, for a like principal amount, will be issued to the transferee in exchange therefor, as provided in the Indenture.  If this bond is transferred or exchanged between a record date, as defined in the aforementioned Thirty-Fifth Supplemental Indenture and the interest payment date in respect thereof, the new bond or bonds shall bear interest from such interest payment date unless the interest payable on such date is not duly paid or provided for on such date.  The Company and the Trustees and any paying agent may deem and treat the person in whose name this bond is registered as the absolute owner hereof for the purpose of receiving payment as herein provided and for all other purposes.  This bond, alone or with other bonds of this series, may in like manner be exchanged at such office or agency for one or more new bonds of this series in authorized denominations, of the same aggregate principal amount, all as provided in the Indenture.  Upon each such transfer or exchange the Company may require the payment of any stamp or other tax or governmental charge incident thereto.

 

No recourse under or upon any covenant or obligation of the Indenture, or of any bonds thereby secured, or for any claim based thereon, or otherwise in any manner in respect thereof, shall be had against any incorporator, subscriber to the capital stock, stockholder, officer or director, as such, of the Company, whether former, present or future, either directly, or indirectly through the Company or the Trustees or either of them, by the enforcement of any subscription to capital stock, assessment or otherwise, or by any legal or equitable proceeding by virtue of any statute or otherwise (including, without limiting the generality of the foregoing, any proceeding to enforce any claimed liability of stockholders of the Company based upon any theory of disregarding the corporate entity of the Company or upon any theory that the Company was acting as the agent or instrumentality of the stockholders), any and all such liability of incorporators, stockholders, subscribers, officers and directors, as such, being released by the holder hereof, by the acceptance of this bond, and being likewise waived and released by the terms of the Indenture under which this bond is issued.

 

Whenever the beneficial ownership of this bond is determined by a book-entry at a securities depositary for the bonds, the foregoing requirements of holding, delivering or transferring this bond shall be modified to require the appropriate person or entity to meet the requirements of the securities depositary as to registering or transferring the beneficial ownership to produce the same effect.

 

_______________________

  

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[FORM OF PRINCIPAL TRUSTEE'S

CERTIFICATE OF AUTHENTICATION]

 

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

 

	
The Bank of New York MELLON

Trust Company, N.A., as Trustee,

	  
	  
	
By_________________________________

     Authorized Officer

 

and

 

WHEREAS the Company represents that all acts and things necessary have happened, been done, and been performed, to make the First Mortgage Bonds, 4.65% Series due 2020, when duly executed by the Company and authenticated by the Principal Trustee, and duly issued, the valid, binding and legal obligations of the Company, and to make the Original Indenture, the aforementioned prior Supplemental Indentures and this Supplemental Indenture valid and binding instruments for the security thereof, in accordance with their terms;

 

NOW, THEREFORE, THIS THIRTY-FIFTH SUPPLEMENTAL INDENTURE WITNESSETH:  That The Empire District Electric Company, the Company herein named, in consideration of the premises and of One Dollar ($1.00) to it duly paid by the Trustees at or before the ensealing and delivery of these presents, the receipt whereof is hereby acknowledged, and in order to secure the payment of the principal of and the interest on all bonds from time to time outstanding under the Indenture, according to the terms of said bonds and of the coupons attached thereto, has granted, bargained, sold, warranted, aliened, remised, released, conveyed, assigned, transferred, mortgaged, pledged, set over and confirmed, and by these presents does grant, bargain, sell, warrant, alien, remise, release, convey, assign, transfer, mortgage, pledge, set over and confirm unto The Bank of New York Mellon Trust Company, N.A. and UMB Bank & Trust, N.A., as Trustees, and their respective successor or successors in the trust, and its or their assigns forever, the following property, with the same force and effect and subject to the same reservations and exceptions, as though specifically described in the granting clauses of the Original Indenture, that is to say:

 

Greenfield Service Center

A tract of land situated in the NE 1⁄4 NE 1⁄4 of Section 13, Township 31 North, Range 27 West of the Fifth Principal Meridian, Dade County, Missouri, more particularly described as follows:

Commencing at the Southeast corner of said NE 1⁄4; thence N00°19’49”W along the east line of said NE 1⁄4, a distance of 1689.10 feet; thence N89°16’32”W, 601.03 feet to an existing iron pin at the Northeast corner of the tract recorded in Book 256 at Page 1031 of the deed records of said Dade County AND THE POINT OF BEGINNING of the tract herein described; thence N89°16’32”W along the North line of said tract, 669.11 feet, measured (669.8 feet, Deed), to the easterly right of way line of Missouri State Highway #39 and the Northwest corner of said tract recorded in Book 256 at Page 1031; thence northerly along said easterly right of way line, along a non-tangent curve to the right having a radius of 1880.10 feet and a chord bearing of N02°08’01”W, an arc distance of 148.08 feet to an iron pin set; thence N00°07’22”E continuing along said easterly right of way line, 174.29 feet to an iron pin set; thence

  

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S89°16’32”E, 679.08 feet to an iron pin set; thence S00°51’35”W, 322.13 feet to the pint of beginning, containing 5.0 acres, more or less. Subject to all rights of way and easements of record.

Atlas Junction Substation #109 addition

A tract of land lying in the SE 1/4 of the SE 1/4 of Section 33, Township 28, Range 32, Jasper County, Missouri described as follows:

 

All that part of the following described tract of land lying North of improved Newman Road and East of new Route 249, both acquired in the year 2000:

All of Lot Numbered One (1) EXCEPT the West 177.5 feet in Prosperity Acres Second Subdivision, in Jasper County, Missouri, according to the recorded plat thereof.

Iatan Property

The property described in Article VI of this Supplemental Indenture.

ALSO all other property, whether real, personal or mixed (except as in the Original Indenture expressly excepted) of every nature and kind and wheresoever situated now owned or hereafter acquired by the Company;

 

TOGETHER with all and singular the tenements, hereditaments and appurtenances belonging or in anywise appertaining to the aforesaid mortgaged property or any part thereof, with the reversion and reversions, remainder and remainders and (subject to the provisions of § 8.01 of the Original Indenture) 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 mortgaged property, and every part and parcel thereof;

 

SUBJECT, HOWEVER, to permitted encumbrances as defined in the Original Indenture and, as to any property hereafter acquired by the Company, to any lien thereon existing, and to any liens for unpaid portions of the purchase money placed thereon at the time of such acquisition, and also subject to the provisions of Article 12 of the Original Indenture.

 

TO HAVE AND TO HOLD the same, unto the Trustees and their and each of their respective successors and assigns forever;

 

IN TRUST, NEVERTHELESS, upon the terms and trusts set forth in the Indenture, so that the same shall be held specifically by the Trustees under and subject to the terms of the Indenture in the same manner and for the same trusts, uses and purposes as if said properties had been specifically contained and described in the Original Indenture;

 

PROVIDED, HOWEVER, and these presents are upon the condition that, if the Company, its successors or assigns, shall pay or cause to be paid unto the holders of the bonds the principal and interest, and premium, if any, to become due in respect thereof at the times and in the manner stipulated therein and in the Indenture and shall keep, perform and observe all and singular the covenants and promises in said bonds and in the Indenture expressed to be kept, performed and observed by or on the part of the Company, then the Indenture and the estate and rights thereby granted shall cease, determine and be void, otherwise to be and remain in full force and effect.

 

  

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AND THE COMPANY, for itself and its successors, does hereby covenant and agree to and with the Trustees, for the benefit of those who shall hold the bonds and the coupons appertaining thereto, or any of them, issued or to be issued under the Indenture, as follows:

 

ARTICLE I

 

CREATION AND DESCRIPTION OF FIRST MORTGAGE BONDS,

4.65% SERIES DUE 2020

 

Section 1. A new series of bonds to be issued under and secured by the Indenture is hereby created, to be designated as First Mortgage Bonds, 4.65% Series due 2020 (herein sometimes called the “Bonds of the New Series” or “Bonds”).  The Bonds of the New Series shall initially be issued in an aggregate principal amount of One Hundred Million Dollars ($100,000,000), excluding any Bonds of the New Series which may be authenticated in lieu of or in substitution or exchange for other Bonds of the New Series pursuant to the provisions of Article 2 or of § 15.09 of the Original Indenture.  Subject to the terms of the Indenture, the Company may issue additional Bonds of the New Series (having the same terms as the Bonds of the New Series initially issued).  Said Bonds and the certificate of authentication of the Principal Trustee to be endorsed upon the Bonds shall be substantially in the forms hereinbefore recited, respectively.  Each Bond shall be dated as of the date of its authentication and all Bonds of the New Series shall mature June 1, 2020 and shall bear interest at the rate of 4.65% per annum, payable semi-annually on each June 1 and December 1 commencing on December 1, 2010; both principal and interest shall be payable at the office or agency of the Company in the City of Chicago, Illinois, and in any coin or currency of the United States of America which at the time of payment shall be legal tender for the payment of public and private debts.

 

The holder of any Bond on any record date (as hereinbelow defined) with respect to any interest payment date shall be entitled to receive the interest payable on such interest payment date notwithstanding the cancellation of such Bond upon any exchange or transfer thereof subsequent to the record date and prior to such interest payment date, except if and to the extent that the Company shall default in the payment of the interest due on such interest payment date, in which case such defaulted interest shall be paid to the person in whose name such Bond (or any Bond or Bonds issued upon transfer or exchange thereof) is registered on a date fixed by the Company, which shall be not more than fifteen and not less than ten days before the date of payment of such defaulted interest.  The term “record date” as used in this Section with respect to any interest payment date shall mean the close of business on the May 15 or November 15, as the case may be, next preceding such interest payment date, whether or not such record date shall be a legal holiday or a day on which banking institutions in the City of Chicago, Illinois are authorized by law to remain closed.

 

The Company shall not be required to make any transfer or exchange of any Bonds for a period of ten days next preceding any selection of Bonds for redemption, nor shall it be required to make transfers or exchanges of any bonds which shall have been selected for redemption in whole or in part.

 

Bonds of the New Series shall be registered Bonds in book-entry form or in definitive form without coupons in denominations of $1,000 and integral multiples thereof which may be executed by the Company and delivered to the Principal Trustee for authentication and delivery.

 

The Bonds of the New Series shall be registrable and interchangeable at the office or agency of the Company in the City of Chicago, Illinois, in the manner and upon the terms set forth in § 2.05 of the Original Indenture, upon payment of such an amount as shall be sufficient to reimburse the Company for, or to pay, any stamp or other tax or governmental charge incident thereto.

 

  

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Notwithstanding the provisions of § 2.08 of the Original Indenture, no service or other charge shall be made for any exchange or transfer of any Bond of the New Series.

 

If the Bonds of the New Series are to be issued in book-entry form only, notwithstanding any provision of the Indenture to the contrary, unless the Company shall otherwise direct (which direction shall promptly be given at the written request of The Depository Trust Company (“DTC”)), all Bonds of the New Series shall be registered in the name of Cede & Co., as nominee of DTC, as registered owner of the Bonds of the New Series, and held in the custody of DTC.  Unless otherwise requested by DTC, a single certificate shall be issued and delivered to DTC.  Beneficial owners of Bonds of the New Series shall not receive physical delivery of Bond certificates except as hereinafter provided.  For so long as DTC shall continue to serve as securities depositary for the Bonds of the New Series as provided herein, all transfers of beneficial ownership interests shall be made by book-entry only, and no investor or other party purchasing, selling or otherwise transferring beneficial ownership of Bonds of the New Series is to receive, hold or deliver any Bond certificate.

 

With respect to Bonds of the New Series registered in the name of Cede & Co., as nominee of DTC, the Trustees and the Company shall have no responsibility or obligation to the securities brokers and dealers, banks, trust companies, clearing corporations and certain other organizations on whose behalf DTC was created to hold securities to facilitate the clearance and settlement of securities transactions among DTC participants (“DTC Participants”) or to any person on whose behalf a DTC Participant holds an interest in the Bonds of the New Series.  Without limiting the immediately preceding sentence, the Trustees and the Company shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any DTC Participant with respect to any ownership interest in the Bonds of the New Series, (ii) the delivery to any DTC Participant or any other person, other than the registered owner of the Bonds of the New Series, of any notice with respect to the Bonds of the New Series, including any notice of redemption, or (iii) the payment to any DTC Participant or any other person, other than the registered owner of the Bonds of the New Series, of any amount with respect to principal of or premium, if any, or interest on the Bonds of the New Series.

 

If the Bonds of the New Series are to be issued in book-entry form only, replacement Bonds may be issued directly to beneficial owners of Bonds of the New Series, but only in the event that (i) DTC determines not to continue to act as securities depositary for the Bonds of the New Series (which determination shall become effective by the giving of reasonable notice to the Company or the Principal Trustee); or (ii) the Company has advised DTC of its determination (which determination is conclusive as to DTC and beneficial owners of the Bonds of the New Series) to terminate the services of DTC as securities depositary for the Bonds of the New Series; or (iii) the Company has determined (which determination is conclusive as to DTC and the beneficial owners of the Bonds of the New Series) that the interests of the beneficial owners of the Bonds of the New Series might be adversely affected if such book-entry only system of transfer is continued.  Upon occurrence of the event set forth in (i) above, the Company shall use its best efforts to attempt to locate another qualified securities depositary.  If the Company fails to locate another qualified securities depositary to replace DTC, the Company shall direct the Principal Trustee to cause to be authenticated and delivered replacement Bonds of the New Series, in certificated form, to the beneficial owners of the Bonds of the New Series.  In the event that the Company makes the determination described in (ii) or (iii) above (provided that the Company undertakes no obligation to make any investigation to determine the occurrence of any events that would permit the Company to make any such determination), and has made provisions to notify the beneficial owners of Bonds of the New Series of such determination by mailing an appropriate notice to DTC, the Company shall cause to be issued replacement Bonds of the New Series in certificated form to beneficial owners of the Bonds of the New Series as shown on the records of DTC provided to the Principal Trustee and the Company.

 

  

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Whenever, during the term of the Bonds of the New Series, the beneficial ownership thereof is determined by a book-entry, the requirements in the Original Indenture or this Supplemental Indenture relating to holding, delivering or transferring Bonds or selection of Bonds to be redeemed shall be deemed modified to require the appropriate person or entity to meet the requirements of DTC as to registering or transferring the beneficial ownership to produce the same effect.

 

If the Bonds of the New Series are to be issued in book-entry form only, notwithstanding any provision of the Original Indenture or this Supplemental Indenture to the contrary, all Bonds of the New Series issued hereunder, if DTC so requires, shall bear a legend substantially to the following effect:

 

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

 

If the Bonds of the New Series are to be issued in book-entry form only, the Company and the Principal Trustee shall, to the extent the Company does not have a blanket letter of representation in place, enter into a letter of representations with DTC to implement the book-entry only system of Bond registration described above.

 

If at any time DTC ceases to hold the Bonds of the New Series, all references herein to DTC shall be of no further force or effect, unless the Bonds have been transferred to a successor securities depositary, in which case all references herein to DTC shall be deemed to refer to such successor depositary.

 

Section 2. The Bonds of the New Series shall be executed by the Company and delivered to the Principal Trustee and, upon compliance with all the provisions and requirements of the Original Indenture in respect thereof, the Bonds of the New Series may, from time to time, be authenticated by the Principal Trustee and delivered (without awaiting the filing or recording of this Supplemental Indenture) in accordance with the written order or orders of the Company.

 

ARTICLE II

 

REDEMPTION OF BONDS OF THE NEW SERIES

 

Section 1. The Bonds of the New Series, in the manner provided in Article 5 of the Original Indenture, shall be redeemable at any time prior to maturity, in whole or in part, at the option of the Company, at the greater of the principal amount of the bonds to be redeemed and a make-whole redemption price (as specified in the form of Bond set forth in this Supplemental Indenture), together with accrued and unpaid interest, if any, to the date fixed for redemption.

 

Section 2. The provisions of § 5.03, § 5.04 and § 5.05 of the Original Indenture (as modified by the provisions specified in the form of Bond set forth in this Supplemental Indenture) shall be applicable to Bonds of the New Series.  The principal amount of Bonds of the New Series registered in the name of any holder and to be redeemed on any partial redemption shall be $1,000, or a multiple thereof.

 

  

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Section 3. The holder of each and every Bond of the New Series issued hereunder hereby, and by accepting the Bond, agrees to accept payment thereof prior to maturity on the terms and conditions provided for in this Article II.

 

ARTICLE III

 

NO SINKING AND IMPROVEMENT FUND FOR BONDS OF THE NEW SERIES

 

There shall be no Sinking and Improvement Fund for the Bonds of the New Series.

 

ARTICLE IV

 

DIVIDENDS AND SIMILAR DISTRIBUTIONS

 

The Company hereby covenants that, so long as any of the Bonds of the New Series shall remain outstanding, the covenants and agreements of the Company set forth in Section 4.11 of the Original Indenture as heretofore supplemented shall be and remain in full force and effect and be duly observed and complied with by the Company, notwithstanding that no First Mortgage Bonds, 31⁄2% Series due 1969, remain outstanding.

 

ARTICLE V

 

THE TRUSTEES

 

The Trustees accept the trusts created by this Supplemental Indenture upon the terms and conditions hereof and agree to perform such trusts upon the terms and conditions set forth in the Original Indenture as heretofore supplemented and in this Supplemental Indenture set forth.  In general, each and every term and condition contained in Article 13 of the Original Indenture shall apply to this Supplemental Indenture with the same force and effect as if the same were herein set forth in full, with such omissions, variations and modifications thereof as may be appropriate to make the same conform to this Supplemental Indenture.

 

ARTICLE VI

 

PROPERTY DESCRIPTION AMENDMENT

 

(a)           Pursuant to § 14.01(a) of the Original Indenture, the description of property subject to the lien of the Indenture, as set forth in the third paragraph in the section captioned “Plants, Platte County, Missouri, 1. Iatan Station” in the Eleventh Supplemental Indenture dated as of August 1, 1978 made by the Company to the Trustees is hereby amended to read as follows:

 

A tract of land comprised of all or part of fractional Sections 18, 19, 29, 30 and 32, Township 54 North, Range 36 West of the Fifth Principal Meridian, and all or part of fractional Sections 13, 24, 25, and 26, Township 54 North, Range 37 West of the Fifth Principal Meridian and a part of fractional Section 5, Township 53 North, Range 36 West as said Sections were surveyed and shown on the Original U. S. Government Surveys of the State of Missouri, ALSO all or part of fractional Sections 5, 6, 7, 8, 9, 16 and 17, Township 7 South, Range 22 East of the Sixth Principal Meridian as said Sections were surveyed and shown on the Original U. S. Government Surveys of the Territory of Kansas, ALSO certain accreted and relicted lands and former river bed; all now being in Platte County in the State of Missouri and more particularly described as fol-

 

  

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lows: (NOTE: The bearings in this description are based on, or have been converted to conform to, the Missouri Coordinate System, West Zone) Beginning at the Southwest corner of the Southeast Quarter of Section 32, Township 54 North, Range 36 West; thence North 89° 49’ 28” East along said South line a distance of 928.4 feet; thence North 00° 34’ 33” East parallel with the West line of said quarter section, 2672.30 feet, more or less to a point on the South line of the Northeast Quarter of said Section 32; thence continuing North 00° 34’ 33” East 432.26 feet; thence South 89° 19’ 03” East, parallel with the South line of said Northeast Quarter Section 1716.0 feet to a point on the East line of said Section 32; thence North 00° 34’ 33” East along said east line 883.99 feet, more or less, to the Southwesterly line of the right of way of Missouri State Highway No. 45; thence Northwesterly along said Southwesterly right of way line through parts of said Sections 32, 29, 30 and 19, in Township 54, Range 36, over the next twenty-nine courses:

 

North 45 degrees 03 minutes 24 seconds West 2772.21 feet; thence South 44 degrees 56 minutes 36 seconds West 5.0 feet; thence North 45 degrees 03 minutes 24 seconds West 700.0 feet; thence North 44 degrees 56 minutes 36 seconds East 5.0 feet; thence North 45 degrees 03 minutes 24 seconds West 466.0 feet; thence Northwesterly along a curve to the right, tangent to the last described course and having a radius of 5,769.58 feet, an arc distance of 506.81 feet; thence North 40 degrees 01 minutes 24 seconds West 2729.8 feet; thence South 49 degrees 58 minutes 36 seconds west 5.0 feet; thence North 40 degrees 01 minutes 24 seconds West 1625.9 feet; thence Northwesterly along a curve to the right, tangent to the last described course and having a radius of 11,504.2 feet, an arc distance of 579.01 feet; thence North 37 degrees 08 minutes 24 seconds west 340.1 feet; thence South 52 degrees 51 minutes 36 seconds West 25.0 feet; thence north 37 degrees 08 minutes 24 seconds West 100.0 feet; thence North 52 degrees 51 minutes 36 seconds East 25.0 feet; thence North 37 degrees 08 minutes 24 seconds West 1587.51 feet; thence South 49 degrees 41 minutes 36 seconds West 10.01 feet; thence North 37 degrees 08 minutes 24 seconds West 610.64 feet; thence Northwesterly on a curve to the right, tangent to the last described course and having a radius of 11,514.2 feet, an arc length of 855.13 feet; thence North 89 degrees 08 minutes 24 seconds West 6.02 feet; thence Northwesterly on a curve to the right, tangent to the last described course and having a radius of 11,519.2 feet, an arc distance of 45.67 feet; thence North 32 degrees 38 minutes 24 seconds West 1699.4 feet; thence North 57 degrees 21 minutes 36 seconds East 5.0 feet; thence North 32 degrees 38 minutes 24 seconds West 350.0 feet; thence North 57 degrees 21 minutes 36 seconds East 5.0 feet; thence North 32 degrees 38 minutes 24 seconds west 748.09 feet; thence North 89 degrees 38 minutes 24 seconds West 119.24 feet; thence North 32 degrees 38 minutes 24 seconds West 95.38 feet; thence South 89 degrees 38 minutes 24 seconds East 119.24 feet; thence North 32 degrees 38 minutes 24 seconds West 56.55 feet to the South line of said Section 18, Township 54 North, range 36 West, at a point 750.65 feet Easterly along said Section line from the Southwest corner of said Section; thence South 89° 38’ 24” East along said South line 331.43 feet to the Southwesterly line of an old county road; thence along said Southwesterly line over the next six courses; North 27° 32’ 56” West, 122.55 feet; thence North 28° 54’ 56” West, 349.13 feet; thence North 30° 34’ 56” West, 983.34 feet; thence North 23° 18’ 56” West, 238.91 feet; thence North 30° 18’ 56” West, 452.35 feet; thence North 25° 30’ 56” West 48.53 feet to a point on the East line of said Section 13, Township 54 North, Range 37 West; thence South 00° 22’ 26” West along said East line, 574.06 feet to the Southwesterly right-of-way line of the Burlington Northern, Inc. (formerly the Chicago Burlington & Quincy Railroad Company), thence Northwesterly along said Southwesterly right-of-way line 759.31 feet, thence continuing along said Southwesterly right-of-way line North 25° 28’ 04” West 634.46 feet, thence departing from said right-of-way line South 70° 22’ 25” West 2245.96 feet; thence South 11° 37’ 34” East 435.6 feet; thence North 71° 22’ 26” East 253.44 feet; thence South 85° 37’ 34” East 876.48 feet; thence South 00° 52’ 26” West 1547.04 feet; thence North

  

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72° 52’ 26” East 238.28 feet, to a point on the West line of Lot 5 of the Northeast fractional 1⁄4 of said Section 24, Township 54 North, Range 37 West; thence South 00° 22’ 26” West along the West line of said Lot 5 (also referred to as the West line of the East 1⁄2 of the Northeast 1⁄4 of said Section) and the Southerly prolongation thereof, 2488.10 feet to the Easterly prolongation of the North line of the Southwest fractional 1⁄4 of said Section 24; thence South 89° 23’ 37” West along said prolongation 928.79 feet to a point which is 3055 feet Easterly along said North line and prolongation, from the Northwest corner of said Southwest fractional quarter section; thence South 34° 17’ 44” West 3252.40 feet to a point on the Easterly prolongation of the South line of said Section 24 at a point 1265 feet Easterly along said line from the Southwest corner of said Section; thence South 89° 15’ 20” East along said Easterly prolongation 2169.14 feet to the North-South center line of said Section 6, Township 7 South, Range 22 East, as said center line is located by decree of the Supreme Court of the United States entered June 5, 1944 and reported in 64 Supreme Court Reporter at Page 1202-1208; thence South 00° 22’ 09” East along the Southerly prolongation of said line 2474.31 feet to the Northwest corner of the Northeast Quarter of fractional Section 7, Township 7 South, Range 22 East, the same being the Southeast corner of a tract of land conveyed to Gary Ashpaugh and Mary Ashpaugh, husband and wife, by General Warranty Deed, filed for record on the 8th day of June 1973 and recorded as Document No. 43211 in Book 416 at Page 430; thence North 89° 58’ 25” West along the South line of said tract, 3118.5 feet to the Southwest corner of said Ashpaugh tract, said corner also being on a line described in a boundary line agreement recorded on July 3, 1968 as Document No. 20330 in Book 311 at Page 83 in the Office of the Recorder of Deeds for Platte County; thence South 0° 55’ 37” West (record South 0° 28’ West) 339.04 feet; thence North 89° 04’ 23” West (record North 89° 49’ West) along said boundary line 877.2 feet; thence South 00° 55’ 37” West (record South 00° 28’ West ) along said boundary line 2383.41 feet to a monumented meander point on the Northerly highbank of the Missouri River (which said monumented meander point is the beginning point of the next six meander line courses which run approximately parallel to a portion of the actual boundary as follows: (1) South 68° 53’ 41” East, 2169.12 feet (2) South 76° 18’ 33” East, 1644.66 feet (3) South 72° 24’ 55” East, 2300.96 feet (4) South 63° 59’ 58” East, 1078.11 feet (5) South 54° 07’ 46” East, 2940.56 feet (6) South 35° 45’ 15” East, 2149.20 feet to a point on the Westerly prolongation of the South line of said Section 32, Township 54, Range 36; the last said meander point bearing South 89° 49’ 28” West along said South line and Westerly prolongation thereof a distance of 3669.29 feet from the Southwest corner of the Southeast Quarter of said Section 32); thence from said monumented meander point South 00° 55’ 37” West, to the low water line on the left or Northerly shore of the Missouri River; thence Southeasterly along the low water line to a point on the Westerly prolongation of a line that is 7371 feet North of and parallel to the South line of the Northeast Quarter of Section 8, Township 53, Range 36; thence leaving said low water line North 89° 49’ 28” East along said parallel line to a point that is 2400 feet West of the East line of the Northwest Quarter of said Section 5; thence South 24° 05’ 32” East 228.63 feet; thence North 89° 49’ 28” East, 1052.17 feet to a point 1255 feet West of the East line of the Northwest quarter of said Section 5, Township 53 North, Range 36 West and 7162 feet North of the South line of the Northeast quarter of Section 8, Township 53 North, Range 36 West, said point being a point on a curve; thence Northwesterly along said curve to the left having a radius of 4677.31 feet (deed) and 4583.66 feet (as surveyed) to a point on the South line of Section 32 at a distance of 1461.66 feet Westerly along said South line from the Southwest corner of the Southeast quarter of said Section 32; thence North 89° 49’ 28” East along said South section line 1461.66 feet to the point of beginning.

Except the following four tracts of land:

Tract 1 (Partial Deed of Release dated September 2, 2009):

  

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The North 125.00 feet of the Northwest Quarter of Fractional Section 7, Township 7 South, Range 22 East of the 6th Principal Meridian as described in the original United States Government surveys of the Territory of Kansas and certain accreted and relicted lands of the former bed of the Missouri River, all now being in Platte County in the State of Missouri and lying East of the boundary line as established by the Boundary Line Agreement filed for record in the Office of the Recorder of Deeds for said Platte County as Document No. 20330 in Book 311 at Page 83, being more particularly described as follows:

Beginning at the Northeast corner of the Northwest Quarter of said Fractional Section 7; thence South 00 degrees 09 minutes 19 seconds East along the East line of said Quarter Section, a distance of 125.00 feet; thence North 89 degrees 48 minutes 45 seconds West along a line 125.00 feet South of and parallel with the North line of said Quarter Section, a distance of 3,176.39 feet to a point on the boundary line as established by the aforesaid Boundary Line Agreement; thence North 01 degrees 04 minutes 45 seconds East (North 00 degrees 28 minutes West, Deed) along said boundary line, a distance of 125 feet, more or less, to a point on the Westerly prolongation of the North line of the Northwest Quarter of said Fractional Section 7; thence South 89 degrees 48 minutes 45 seconds East along the North line of said Quarter Section, a distance of 3,173.70 feet to the Point of Beginning. Containing 397,866 square feet or 9.134 acres, more or less.

Tract 2 (Partial Deed of Release dated September 2, 2009):

A tract of land in the Northwest Quarter of Fractional Section 7, Township 7 South, Range 22 East of the 6th Principal Meridian as described in the original United States Government surveys of the Territory of Kansas and certain accreted and relicted lands of the former bed of the Missouri River, all now being in Platte County in the State of Missouri and lying East of the boundary line as established by the Boundary Line Agreement filed for record in the Office of the Recorder of Deeds for said Platte County as Document No. 20330 in Book 311 at Page 83, being more particularly described as follows:

Commencing at the Northeast corner of the Northwest Quarter of said Fractional Section 7; thence South 00 degrees 09 minutes 19 seconds East along the East line of said Quarter Section, a distance of 125.00 feet to the Point of Beginning of the tract of land to be herein described; thence North 89 degrees 48 minutes 45 seconds West along a line 125.00 feet South of and parallel with the North line of said Quarter Section, a distance of 3,176.39 feet to a point on the boundary line as established by the aforesaid Boundary Line Agreement; thence South 01 degrees 04 minutes 45 seconds West (South 00 degrees 28 minutes West, Deed) along said boundary line, a distance of 260.13 feet to an angle point in the aforesaid Boundary Line Agreement; thence South 89 degrees 48 minutes 45 seconds East along a line parallel with the North line of said Quarter Section, a distance of 3,182.00 to a point on the East line of said Quarter Section; thence North 00 degrees 09 minutes 19 seconds West along the East line of said Quarter Section, a distance of 260.10 feet to the Point of Beginning. Containing 826,893 square feet or 18.983 acres, more or less.

Tract 3 (herein released):

A portion of the South Half of Section 13, Township 54 North, Range 37 West in Platte County, Missouri, being more particularly described as follows:

  

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Commencing at the Northwest corner of the Northeast Quarter of said Section 13, thence South 01 degree 15 minutes 19 seconds West along the West line of the Northeast Quarter of said Section 13, a distance of 2,648.67 feet to the Center of said Section 13; thence continuing South 01 degree 15 minutes 19 seconds West being now along the West line of the Southeast Quarter of said Section 13, a distance of 931.65 feet to a point on the Northwesterly line of the parcel of land conveyed to The Bank of Weston by the Warranty Deed filed May 1, 1975 as Document No. 10570 and recorded in Book 464 at Page 287 in the Office of the Recorder of Deeds for said Platte County and the Point of Beginning of the tract of land to be herein described; thence North 66 degrees 42 minutes 09 seconds East (North 70 degrees East, Deed) along the Northwesterly line of the aforesaid parcel of land, a distance of 172.49 feet to a point in the center of a drainage slough as field located in December, 2008; thence Southeasterly along the center line of said field located drainage slough, the following courses and distances; thence South 26 degrees 20 minutes 33 seconds East, 40.87 feet; thence South 29 degrees 40 minutes 37 seconds East, 55.61 feet; thence Southeasterly along a curve to the left, tangent to the last described course, having a radius of 458.00 feet and a central angle of 11 degrees 28 minutes 19 seconds, an arc length of 91.70 feet; thence South 41 degrees 08 minutes 56 seconds East, tangent to the last described curve, a distance of 110.30 feet; thence South 48 degrees 11 minutes 58 seconds East, 47.54 feet; thence South 36 degrees 12 minutes 17 seconds East, 42.86 feet to a point in the center of a drainage slough (also known as the old mill race) as field located in December, 2008; thence Westerly and Southwesterly along the center line of said field located drainage slough (also known as the old mill race), the following courses and distances; South 82 degrees 34 minutes 55 seconds West, 116.59 feet; thence South 86 degrees 23 minutes 56 seconds West, 69.42 feet; thence Westerly and Southwesterly along a curve to the left, tangent to the last described course, having a radius of 220.00 feet and a central angle of 34 degrees 34 minutes 08 seconds, an arc length of 132.73 feet to a point of reverse curve; thence Southwesterly along a curve to the right, tangent to the last described curve, having a radius of 160.00 feet and a central angle of 13 degrees 43 minutes 48 seconds, an arc length of 38.34 feet; thence South 65 degrees 33 minutes 36 seconds West tangent to the last described curve, a distance of 46.51 feet; thence Southwesterly and Westerly along a curve to the right, tangent to the last described course, having a radius of 200.00 feet and a central angle of 14 degrees 32 minutes 44 seconds, an arc length of 50.77 feet to a point on the Westerly line of the aforesaid parcel of land described in said Warranty Deed; thence North 15 degrees 17 minutes 51 seconds West (North 12 degrees West, Deed) along the Westerly line of the aforesaid parcel of land, being no longer along the center line of said field located drainage slough, a distance of 318.63 feet; thence North 66 degrees 42 minutes 09 seconds East (North 70 degrees East, Deed) along the Northwesterly line of the aforesaid parcel of land, a distance of 135.04 feet to the Point of Beginning, containing 117,624 square feet or 2.700 acres, more or less.

Tract 4 (herein released):

A portion of the South Half of Section 13 together with a portion of the Northeast Quarter of Section 24, all in Township 54 North, Range 37 West in Platte County, Missouri, being more particularly described as follows:

Commencing at the Northwest corner of the Northeast Quarter of said Section 13, thence South 01 degree 15 minutes 19 seconds West along the West line of the Northeast Quarter of said Section 13, a distance of 2,648.67 feet to the Center of said Section 13; thence continuing South 01 degree 15 minutes 19 seconds West being now along the West line of the Southeast Quarter of said Section 13, a distance of 1,400.9 feet to the most Westerly, Southwest corner of the parcel of land conveyed to The Bank of Weston by the Warranty Deed filed May 1, 1975 as Document No. 10570 and recorded in Book 464 at Page 287 in the Office of the Recorder of Deeds for said

  

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Platte County, the most Westerly, Southwest corner of said parcel of land being the Point of Beginning of the tract of land to be herein described; thence Easterly and Southerly along the Southerly and Westerly lines of the parcel of land described in said Warranty Deed, the following courses and distances; thence North 71 degrees 23 minutes 02 seconds East (North 71 degrees East, Deed), a distance of 189.52 feet (3.84 chains, Deed = 253.44 feet); thence South 85 degrees 36 minutes 58 seconds East (South 86 degrees East, Deed), a distance of 876.48 feet (13.28 chains, Deed = 876.48 feet); thence South 00 degrees 53 minutes 02 seconds West (South 0 degrees 30 minutes West, Deed), a distance of 1,547.04 feet (23.44 chains, Deed = 1,547.04 feet) to the old Bank of the Missouri river as described in said Warranty Deed; thence North 72 degrees 53 minutes 02 seconds East (North 72 degrees 30 minutes East, Deed), a distance of 238.28 feet; thence North 00 degrees 23 minutes 02 East seconds East, departing from the aforesaid Southerly and Westerly lines of the parcel of land described in said Warranty Deed, a distance of 1,764.56 feet to a point in the center of a drainage slough (also known as the old mill race) as field located in December, 2008, said point being hereby designated as Point “A”; thence Westerly and Southwesterly along the center line of said field located drainage slough, the following courses and distances; thence South 89 degrees 08 minutes 39 seconds West, 169.65 feet; thence South 87 degrees 49 minutes 39 seconds West, 221.59 feet; thence South 86 degrees 10 minutes 49 seconds West, 142.41 feet; thence South 83 degrees 23 minutes 28 seconds West, 147.42 feet; thence South 85 degrees 19 minutes 24 seconds West, 189.43 feet; thence South 82 degrees 34 minutes 55 seconds West, 116.59 feet; thence South 86 degrees 23 minutes 56 seconds West, 69.42 feet; thence Westerly and Southwesterly along a curve to the left, tangent to the last described course, having a radius of 220.00 feet and a central angle of 34 degrees 34 minutes 08 seconds, an arc length of 132.73 feet to a point of reverse curve; thence Southwesterly along a curve to the right, tangent to the last described curve, having a radius of 160.00 feet and a central angle of 13 degrees 43 minutes 48 seconds, an arc length of 38.34 feet; thence South 65 degrees 33 minutes 36 seconds West tangent to the last described curve, a distance of 46.51 feet; thence Southwesterly and Westerly along a curve to the right, tangent to the last described course, having a radius of 200.00 feet and a central angle of 14 degrees 32 minutes 44 seconds, an arc length of 50.77 feet to a point on the Westerly line of the aforesaid parcel of land described in said Warranty Deed; thence South 15 degrees 17 minutes 51 seconds East (South 12 degrees East, Deed) along the Westerly line of the aforesaid parcel of land, being no longer along the center line of said field located drainage slough, a distance of 112.35 feet to the Point of Beginning, containing 611,078 square feet or 14.028 acres, more or less.

(b)           Pursuant to § 14.02 of the Original Indenture, the Trustees are hereby authorized to effectuate such amendment in clause (a) above of this Article VI by executing this Supplemental Indenture.

 

ARTICLE VII

 

MISCELLANEOUS PROVISIONS

 

Section 1. If the date for making any payment of principal, interest, or premium or the last date for performance of any act or the exercising of any right, as provided in this Supplemental Indenture, shall be a legal holiday or a day on which banking institutions in the City of Chicago, Illinois, are authorized by law to remain closed, such payment may be made or act performed or right exercised on the next succeeding day not a legal holiday or a day on which such banking institutions are authorized by law to remain closed, with the same force and effect as if done on the nominal date provided in this Supplemental Indenture, and no interest shall accrue for the period after such nominal date.

 

  

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Section 2. The Original Indenture as heretofore and hereby supplemented and amended is in all respects ratified and confirmed; and the Original Indenture, this Supplemental Indenture and all other indentures supplemental to the Original Indenture shall be read, taken and construed as one and the same instrument.  Neither the execution of this Supplemental Indenture nor anything herein contained shall be construed to impair the lien of the Original Indenture as heretofore supplemented on any of the property subject thereto, and such lien shall remain in full force and effect as security for all bonds now outstanding or hereafter issued under the Indenture.  All terms defined in Article 1 of the Original Indenture, as heretofore supplemented, for all purposes of this Supplemental Indenture, shall have the meanings therein specified, unless the context otherwise requires.

 

Section 3. This Supplemental 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 4. Nothing in this Supplemental Indenture contained, shall, or shall be construed to, confer upon any person other than a holder of bonds issued under the Indenture, the Company and the Trustees any right or interest to avail himself of any benefit under any provision of the Indenture, as heretofore supplemented and amended, or of this Supplemental Indenture.

 

  

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IN WITNESS WHEREOF, The Empire District Electric Company, party of the first part, has caused its corporate name to be hereunto affixed and this instrument to be signed by its President or a Vice President, and its corporate seal to be hereunto affixed and attested by its Secretary or an Assistant Secretary for and in its behalf; and The Bank of New York Mellon Trust Company, N.A. and UMB Bank & Trust, N.A., parties of the second part, in evidence of each of its acceptance of the trust hereby created, have each caused its corporate name to be hereunto affixed, and this instrument to be signed by its President, a Vice President or an Assistant Vice President and its corporate seal to be hereunto affixed and attested by its Secretary or an Assistant Secretary for and in its behalf, all as of the day and year first above written.

 

	
THE EMPIRE DISTRICT ELECTRIC COMPANY

	  
	  
	
By  /s/ Gregory A. Knapp         

       Name:  Gregory A. Knapp

       Title:    Vice President - Finance and

                    Chief Financial Officer

[Corporate Seal]

	
Attest:

 

 

	
            /s/ Janet S. Watson      

Name:  Janet S. Watson

Title:    Secretary-Treasurer

	  
	  
	
Signed, sealed and delivered by

      THE EMPIRE DISTRICT ELECTRIC COMPANY

       in the presence of:

	  
	
            /s/ Debra S. Brill         

Name:  Debra S. Brill

	  
	
            /s/ Robert W. Sager        

Name:  Robert W. Sager

  

  

  

	
THE BANK OF NEW YORK MELLON

TRUST COMPANY, N.A., as Trustee

	  
	  
	
By  /s/ Richard Tarnas      

       Name:  Richard Tarnas

      Title:    Vice President

[Corporate Seal]

	
Attest:

 

 

	
           /s/ Lawrence Kusch      

Name:  Lawrence Kusch

Title:    Vice President

	  
	  
	
Signed, sealed and delivered by

     THE BANK OF NEW YORK MELLON

     TRUST COMPANY, N.A.

     in the presence of:

	  
	
          /s/ Julie Meadors      

Name:  Julie Meadors

	  
	
          /s/ Robert Cafarelli      

Name:  Robert Cafarelli

  

  

  

	
UMB BANK & TRUST, N.A., as Trustee

	  
	  
	
By  /s/ Laura Roberson      

Name:  Laura Roberson

Title:    Vice President

	
[Corporate Seal]

	  
	  
	
Attest:

 

 

	
           /s/ Deanna Wilson      

Name:  Deanna Wilson

Title:    Assistant Secretary

	  
	  
	
Signed, sealed and delivered by

     UMB BANK & TRUST, N.A.

     in the presence of:

	  
	
           /s/ Mary Heitland      

Name:  Mary Heitland

	  
	
           /s/ Kathy Schmeider     

Name:  Kathy Schmeider

  

  

  

	
State of Missouri

	
)

	  	
)  ss.:

	
County of Jasper

	
)

 

Be It Remembered, and I do hereby certify, that on this  28th day of May, 2010, before me, a Notary Public in and for the County and State aforesaid, personally appeared Gregory A. Knapp, the Vice President - Finance and Chief Financial Officer of The Empire District Electric Company, a Kansas corporation, and Janet S. Watson, the Secretary-Treasurer of said corporation, who are both to me personally known, and both personally known to me to be such officers and to be the identical persons whose names are subscribed to the foregoing instrument as such Vice President - Finance and Chief Financial Officer and Secretary-Treasurer, respectively, and as the persons who subscribed the name and affixed the seal of said The Empire District Electric Company, one of the makers thereof, to the foregoing instrument as its Vice President - Finance and Chief Financial Officer and Secretary-Treasurer, and they each acknowledged to me that they, being thereunto duly authorized, executed the same for the uses, purposes and consideration therein set forth and expressed, and in the capacities therein stated, as their free and voluntary act and deed, and as the free and voluntary act and deed of said corporation.

 

And the said Gregory A. Knapp and Janet S. Watson, being each duly sworn by me, severally deposed and said:  that they reside in City of Joplin, Missouri; that they were at that time Vice President - Finance and Chief Financial Officer and Secretary-Treasurer, of said corporation; that they knew the corporate seal of said corporation, and that the seal affixed to said instrument was such corporate seal, and was thereto affixed by said Secretary-Treasurer, and the said instrument was signed by said Vice President - Finance and Chief Financial Officer, in pursuance of the power and authority granted them by the By-Laws of said corporation, and by authority of the Board of Directors thereof.

 

In Testimony Whereof, I have hereunto set my hand and affixed my official and notarial seal at my office in said County and State the day and year last above written.

 

My commission expires August 26, 2011

 

[Notarial Seal]

 

	
/s/ Julia L. Blackburn

Notary Public

  

  

  

	
State of Illinois

	
)

	  	
)  ss.:

	
County of Cook

	
)

Be It Remembered, and I do hereby certify, that on the  28th day of May, 2010, before me, a Notary Public in and for the County and State aforesaid, personally appeared Richard Tarnas, Vice President of The Bank of New York Mellon Trust Company, N.A., a national banking association organized under the laws of the United States of America, and Lawrence Kusch, Vice President of said association, who are both to me personally known, and both personally known to me to be such officers and to be the identical persons whose names are subscribed to the foregoing instrument as Vice Presidents, and as the persons who subscribed the name and affixed the seal of said The Bank of New York Mellon Trust Company, N.A., one of the makers thereof, to the foregoing instrument as its Vice Presidents, and they each acknowledged to me that they, being thereunto duly authorized, executed the same for the uses, purposes and consideration therein set forth and expressed, and in the capacities therein stated, as their free and voluntary act and deed, and as the free and voluntary act and deed of said association.

 

And the said Richard Tarnas and Lawrence Kusch, being each duly sworn by me, severally deposed and said:  that they reside in Chicago, Illinois and Chicago, Illinois, respectively; that they were at that time each Vice President, of said association; that they knew the corporate seal of said association, and that the seal affixed to said instrument was such corporate seal, and was thereto affixed by said Vice President, and the said instrument was signed by said Vice President, in pursuance of the power and authority granted them by the By-Laws of said association, and by authority of the Board of Directors thereof.

 

In Testimony Whereof, I have hereunto set my hand and affixed my official and notarial seal at my office in said County and State the day and year last above written.

 

My commission expires 1/7/2012

 

[Notarial Seal]

 

	
/s/ Julie Meadors

Notary Public

 

  

  

  

	
State of Missouri

	
)

	  	
)  ss.:

	
City of St. Louis

	
)

 

Be It Remembered, and I do hereby certify, that on this  28th day of May, 2010, before me, a Notary Public in and for the County and State aforesaid, personally appeared Laura Roberson, Vice President of UMB Bank & Trust, N.A., a national banking association organized under the laws of the United States of America, and Deanna Wilson, Assistant Secretary of said association, who are both to me personally known, and both personally known to me to be such officers and to be the identical persons whose names are subscribed to the foregoing instrument as such Vice President and Assistant Secretary, respectively, and as the persons who subscribed the name and affixed the seal of said UMB Bank & Trust, N.A. one of the makers thereof, to the foregoing instrument as its Vice President and Assistant Secretary, and they each acknowledged to me that they, being thereunto duly authorized, executed the same for the uses, purposes and consideration therein set forth and expressed, and in the capacities therein stated, as their free and voluntary act and deed, and as the free and voluntary act and deed of said association.

 

And the said Laura Roberson and Deanna Wilson, being each duly sworn by me, severally deposed and said:  that they reside in St. Louis, Missouri; that they were at that time respectively Vice President and Assistant Secretary of said association; that they knew the corporate seal of said association, and that the seal affixed to said instrument was such corporate seal, and was thereto affixed by said Vice President, and the said instrument was signed by said Assistant Secretary, in pursuance of the power and authority granted them by the By-Laws of said association, and by authority of the Board of Directors thereof.

 

In Testimony Whereof, I have hereunto set my hand and affixed my official seal at my office in said County and State the day and year last above written.

 

My commission expires 8/11/2012

 

[Notarial Seal]

 

	
/s/ M. Deborah King

Notary Publiccsw10kex1012033110.htm

 

Exhibit 10.12

 

AMENDMENT TWO TO

RETIREMENT PLAN FOR EMPLOYEES OF

CAPITAL SOUTHWEST CORPORATION AND ITS AFFILIATES

As Amended and Restated Effective April 1, 2006

WHEREAS, effective as of April 1, 2006, the Retirement Plan for Employees of Capital Southwest Corporation and Its Affiliates (the "Plan") was amended and restated in its entirety;

 

WHEREAS, by the terms of Section 6.4 of the Plan, the Plan may be amended;

 

WHEREAS, certain technical amendments to the Plan relating to regulations issued under section 415 of the Internal Revenue Code (the “Code”) were previously submitted to the Board of Directors of Capital Southwest Corporation but, prior to approval of such changes, it was deemed appropriate and still timely to incorporate updated provisions in order to comply with law changes under the Pension Protection Act of 2006 and determined that such changes be made within the required amendment period;

 

WHEREAS, it is necessary that certain technical amendments be made to the Plan in order to comply with final regulations issued under section 415 of the Internal Revenue Code and to reflect law changes under the Pension Protection Act of 2006;

 

NOW, THEREFORE, the Plan is hereby amended, effective as of the dates specified below, as follows:

 

1. Effective as of January 1, 2008, Section 1.1(B)(2) of the Plan is amended to read in its entirety as follows:

 

	
  

	
"(2)

	
Any provisions of Subsection (1) above to the contrary notwithstanding, if payment is in a form of distribution which is subject to Section 417(e)(3) of the Internal Revenue Code, which shall include lump-sum distributions and other forms of distribution that provide payments in the form of a decreasing annuity or that provide payments that may be for a period less than the life of the recipient, (an "IRC Section 417(e)(3) form of distribution") the amount of any such IRC Section 417(e)(3) form of distribution to a Participant shall be equal to the actuarial equivalent of the Participant's "accrued benefit" (within the meaning of Section 411(a)(7) of the Internal Revenue Code and regulations issued with respect thereto) commencing at his Normal Retirement Age or the date of termination of his service, whichever is later, determined using:

 

 

 

  

 

  

 

	
(a)  

	
the "Applicable Mortality Table" which means:

 

	
(i)  

	
for any Annuity Starting Date that is after December 31, 2002 and prior to January 1, 2008, the mortality table prescribed in Revenue Ruling 2001-62 (based upon a fixed blend of 50% of the unloaded male mortality rates and 50% of the unloaded female mortality rates underlying the mortality rates in the 1994 Group Annuity Reserving Table, projected to 2002); and

 

	
(ii)  

	
for any Annuity Starting Date that is on or after January 1, 2008, the mortality table as defined in Code Section 417(e)(3)(B), modified as appropriate by the Secretary of the Treasury, specified for the Plan Year during which the Annuity Starting Date occurs.

 

	
(b)  

	
the "Applicable Interest Rate" which means:

 

	
(i)  

	
for any Annuity Starting Date that is after December 31, 2002, and prior to January 1, 2008, the annual rate of interest on 30-year Treasury securities for the second full calendar month immediately preceding the first day of the Plan Year during which the Annuity Starting Date occurs; and

 

	
(ii)  

	
for any Annuity Starting Date that is on or after January 1, 2008, the adjusted first, second, and third segment rates applied under rules similar to the minimum funding rules of Code Section 430(h)(2)(C) for the second full calendar month immediately preceding the first day of the Plan Year during which the Annuity Starting Date occurs.

 

	
(c)  

	
For purposes of Subparagraph (b) above, the adjusted first, second, and third segment rates are the first, second, and third segment rates which would be determined under Code Section 430(h)(2)(C) if —

 

 

  

- 2 -

  

 

	
(i)  

	
Code Section 430(h)(2)(D) were applied by substituting the average yields for the month described in clause (ii) of such section for the average yields for the 24-month period described in such section;

 

	
(ii)  

	
Code Section 430(h)(2)(G)(i)(II) were applied by substituting "section 417(e)(3)(A)(ii)(II)" for "section 412(b)(5)(B)(ii)(II)"; and

 

	
(iii)  

	
the applicable percentage under Code Section 430(h)(2)(G) were determined in accordance with the following table:

	

For Plan Year

	 	

Applicable Percentage

	
2008

	 	
20%

	
2009

	 	
40%

	
2010

	 	
60%

	
2011

	 	
80%

The amount of any such IRC Section 417(e)(3) form of distribution that is payable to a Beneficiary whose Annuity Starting Date is prior to the Annuity Starting Date of the Participant shall be equal to the actuarial equivalent, determined using the mortality and interest assumptions specified in the preceding sentence, of the benefit payable to such Beneficiary as a monthly income payable for life commencing at the Annuity Starting Date of the Beneficiary.”

2. Effective for limitation years beginning on or after July 1, 2007, Section 4.1(A) of the Plan is amended to read in its entirety as follows:

 

	 	
"(A)

	
Limitations Imposed by Section 415 of the Internal Revenue Code:

 

(1)           The limitations of this Section 4.1(A) shall apply on and after January 1, 2008, except as otherwise provided herein.

 

(2)           The Annual Benefit otherwise payable to a Participant under the Plan at any time shall not exceed the Maximum Permissible Benefit.  If the benefit the Participant would otherwise accrue in a Limitation Year would produce an Annual Benefit in excess of the Maximum Permissible Benefit, the benefit shall be limited (or the rate of accrual reduced) to a benefit that does not exceed the Maximum Permissible Benefit.

 

 

  

- 3 -

  

 

(3)           If the Participant is, or has ever been, a participant in another qualified defined benefit plan (without regard to whether the plan has been terminated) maintained by the employer or a predecessor employer, the sum of the Participant’s Annual Benefits from all such plans may not exceed the Maximum Permissible Benefit.  Where the Participant’s employer-provided benefits under all such defined benefit plans (determined as of the same age) would exceed the Maximum Permissible Benefit applicable at that age, the maximum monthly retirement income applicable to all such defined benefit plans of the employer shall be determined and allocated on a pro rata basis in proportion to the actuarially equivalent amount of retirement income otherwise accrued under each such defined benefit plan so that the Maximum Permissible Benefit is not exceeded.

 

(4)           The application of the provisions of this section shall not cause the Maximum Permissible Benefit for any Participant to be less than the Participant’s accrued benefit under all the defined benefit plans of the employer or a predecessor employer as of the end of the last Limitation Year beginning before July 1, 2007 under provisions of the plans that were both adopted and in effect before April 5, 2007. The preceding sentence applies only if the provisions of such defined benefit plans that were both adopted and in effect before April 5, 2007 satisfied the applicable requirements of statutory provisions, regulations, and other published guidance relating to Section 415 of the Internal Revenue Code in effect as of the end of the last Limitation Year beginning before July 1, 2007, as described in Section 1.415(a)-1(g)(4) of the Treasury regulations.

 

(5)           The limitations of this Section 4.1(A) shall be determined and applied taking into account the rules in Section 4.1(A)(7).

 

(6)           Definitions.

 

(a)           "Annual Benefit" shall mean a benefit that is payable annually in the form of a straight life annuity.  Except as provided below, where a benefit is payable in a form other than a straight life annuity, the benefit shall be adjusted to an actuarially equivalent straight life annuity that begins at the same time as such other form of benefit and is payable on the first day of each month, before applying the limitations of this Section 4.1(A).  For a Participant who has or will have distributions commencing at more than one annuity starting date, the Annual Benefit shall be determined as of each such annuity starting date (and shall satisfy the limitations of this Section 4.1(A) as of each such date), actuarially adjusting for past and future distributions of benefits commencing at the other annuity starting dates.  For this purpose, the determination of whether a new starting date has occurred shall be made without regard to Section 1.401(a)-20, Q&A 10(d), and with regard to Section 1.415(b)-1(b)(1)(iii)(B) and (C) of the Treasury regulations.

 

No actuarial adjustment to the benefit shall be made for (1) survivor benefits payable to a surviving spouse under a qualified joint and survivor annuity to the extent such benefits would not be payable if the Participant’s benefit were paid in another form; (2) benefits that are not directly related to retirement benefits (such as a qualified disability benefit, preretirement incidental death benefits, and postretirement medical benefits); or (3) the inclusion in the form of benefit of an automatic benefit increase feature, provided the form of benefit is not subject to Section 417(e)(3) of the Internal Revenue Code and would otherwise satisfy the limitations of this Section 4.1(A), and the Plan provides that the amount payable under the form of benefit in any Limitation Year shall not exceed the limits of this Section 4.1(A) applicable at the annuity starting date, as increased in subsequent years pursuant to Section 415(d) of the Internal Revenue Code.  For this purpose, an automatic benefit increase feature is included in a form of benefit if the form of benefit provides for automatic, periodic increases to the benefits paid in that form.

 

 

  

- 4 -

  

 

The determination of the Annual Benefit shall take into account Social Security supplements described in Section 411(a)(9) of the Internal Revenue Code and benefits transferred from another defined benefit plan, other than transfers of distributable benefits pursuant to Section 1.411(d)-4, Q&A-3(c), of the Treasury regulations, but shall disregard benefits attributable to employee contributions or rollover contributions.

 

Effective for distributions in Plan Years beginning after December 31, 2003, the determination of actuarial equivalence of forms of benefit other than a straight life annuity shall be made in accordance with Section 4.1(A)(6)(a)(i) or (ii) below.

 

	
  

	
(i)

	
Benefit Forms Not Subject to Section 417(e)(3) of the Internal Revenue Code: The straight life annuity that is actuarially equivalent to the Participant’s form of benefit shall be determined under this subsection (i) if the form of the Participant’s benefit is either (1) a nondecreasing annuity (other than a straight life annuity) payable for a period of not less than the life of the Participant (or, in the case of a qualified pre-retirement survivor annuity, the life of the surviving spouse), or (2) an annuity that decreases during the life of the Participant merely because of (a) the death of the survivor annuitant (but only if the reduction is not below 50% of the benefit payable before the death of the survivor annuitant), or (b) the cessation or reduction of Social Security supplements or qualified disability payments (as defined in Section 401(a)(11) of the Internal Revenue Code).

 

	
  

	
(A)

	
Limitation Years beginning before July 1, 2007.  For Limitation Years beginning before July 1, 2007, the actuarially equivalent straight life annuity is equal to the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the Participant’s form of benefit computed using whichever of the following produces the greater annual amount:  (I) the interest rate specified in Section 1.1(B)(1)(b) of the Plan and the mortality table (or other tabular factor) specified in Section 1.1(B)(1)(a) of the Plan for adjusting benefits in the same form; and (II) a 5 percent interest rate assumption and the applicable mortality table prescribed in Revenue Ruling 2001-62 for that annuity starting date.

 

 

 

  

- 5 -

  

	
  

	
(B)

	
Limitation Years beginning on or after July 1, 2007.  For Limitation Years beginning on or after July 1, 2007, the actuarially equivalent straight life annuity is equal to the greater of (I) the annual amount of the straight life annuity (if any) payable to the Participant under the Plan commencing at the same annuity starting date as the Participant’s form of benefit; and (II) the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the Participant’s form of benefit, computed using a 5 percent interest rate assumption and the Applicable Mortality Table defined in Section 1.1(B)(2)(a) of the Plan for that annuity starting date.

 

	
  

	
(ii)

	
Benefit Forms Subject to Section 417(e)(3) of the Internal Revenue Code:  The straight life annuity that is actuarially equivalent to the Participant’s form of benefit shall be determined under this subsection (ii) if the form of the Participant’s benefit is other than a benefit form described in subsection (i) above.  In this case, the actuarially equivalent straight life annuity shall be determined as follows:

 

	
  

	
(A)

	
Annuity Starting Date in Plan Years Beginning After 2005.  If the annuity starting date of the Participant’s form of benefit is in a Plan Year beginning after 2005, the actuarially equivalent straight life annuity is equal to the greatest of (I) the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the Participant’s form of benefit, computed using the interest rate specified in Section 1.1(B)(1)(b) of the Plan and the mortality table (or other tabular factor) specified in Section 1.1(B)(1)(a) of the Plan for adjusting benefits in the same form; (II) the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the Participant’s form of benefit, computed using a 5.5 percent interest rate assumption and the Applicable Mortality Table defined in Section 1.1(B)(2)(a) of the Plan for that annuity starting date; and (III) the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the Participant’s form of benefit, computed using the Applicable Interest Rate defined in Section 1.1(B)(2)(b) of the Plan and the Applicable Mortality Table defined in Section 1.1(B)(2)(a) of the Plan for that annuity starting date, divided by 1.05.

 

 

 

  

- 6 -

  

 

	
(B)  

	
Annuity Starting Date in Plan Years Beginning in 2004 or 2005.  If the annuity starting date of the Participant’s form of benefit is in a Plan Year beginning in 2004 or 2005, the actuarially equivalent straight life annuity is equal to the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the Participant’s form of benefit, computed using whichever of the following produces the greater annual amount: (I) the interest rate specified in Section 1.1(B)(1)(b) of the Plan and the mortality table (or other tabular factor) specified in Section 1.1(B)(1)(a) of the Plan for adjusting benefits in the same form; and (II) a 5.5 percent interest rate assumption and the applicable mortality table prescribed in Revenue Ruling 2001-62.

 

If the annuity starting date of the Participant’s benefit is on or after the first day of the first Plan Year beginning in 2004 and before December 31, 2004, the application of this subsection (ii) shall not cause the amount payable under the Participant’s form of benefit to be less than the benefit calculated under the Plan, taking into account the limitations of this Section 4.1(A), except that the actuarially equivalent straight life annuity is equal to the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the Participant’s form of benefit, computed using whichever of the following produces the greatest annual amount:

 

	
  

	
(i)

	
the interest rate specified in Section 1.1(B)(1)(b) of the Plan and the mortality table (or other tabular factor) specified in Section 1.1(B)(1)(a) of the Plan for adjusting benefits in the same form;

 

	
  

	
(ii)

	
the Applicable Interest Rate defined in Section 1.1(B)(2)(b) of the Plan and the applicable mortality table prescribed in Revenue Ruling 2001-62; or

 

	
  

	
(iii)

	
the Applicable Interest Rate defined in Section 1.1(B)(2)(b) of the Plan (as in effect on the last day of the last Plan Year beginning before January 1, 2004, under provisions of the Plan then adopted and in effect) and the applicable mortality table prescribed in Revenue Ruling 2001-62.

 

(b)           "IRC 415 Compensation" shall mean wages, salaries, and fees for professional services and other amounts received (without regard to whether or not an amount is paid in cash) for personal services actually rendered in the course of employment with the Employer maintaining the Plan to the extent that the amounts are includible in gross income (including, but not limited to, commissions paid salespersons, compensation for services on the basis of a percentage of profits, commissions on insurance premiums, tips, bonuses, fringe benefits, and reimbursements, or other expense allowances under a nonaccountable plan [as described in Section 1.62-2(c) of the Treasury regulations]), and excluding the following:

 

 

  

- 7 -

  

 

	
  

	
(i)

	
Employer contributions (other than elective contributions described in Sections 402(e)(3), 408(k)(6), 408(p)(2)(A)(i), or 457(b) of the Internal Revenue Code) to a plan of deferred compensation (including a simplified employee pension described in Section 408(k) or a simple retirement account described in Section 408(p) of the Internal Revenue Code, and whether or not qualified) to the extent such contributions are not includible in the Employee’s gross income for the taxable year in which contributed, and any distributions (whether or not includible in gross income when distributed) from a plan of deferred compensation (whether or not qualified), other than, amounts received during the year by an Employee pursuant to a nonqualified unfunded deferred compensation plan to the extent includible in gross income;

 

	
  

	
(ii)

	
amounts realized from the exercise of a nonstatutory stock option (that is, an option other than a statutory stock option as defined in Section 1.421-1(b) of the Treasury regulations), or when restricted stock (or property) held by the Employee either becomes freely transferable or is no longer subject to a substantial risk of forfeiture;

 

	
  

	
(iii)

	
amounts realized from the sale, exchange or other disposition of stock acquired under a statutory stock option;

 

	
  

	
(iv)

	
other amounts that receive special tax benefits, such as premiums for group-term life insurance (but only to the extent that the premiums are not includible in the gross income of the Employee and are not salary reduction amounts that are described in Section 125 of the Internal Revenue Code); and

 

	
  

	
(v)

	
other items of remuneration that are similar to any of the items listed in (i) through (iv).

 

For any self-employed individual, IRC 415 Compensation shall mean earned income.

 

Except as provided herein, for Limitation Years beginning after December 31, 1991, IRC 415 Compensation for a Limitation Year is the IRC 415 Compensation actually paid or made available during such Limitation Year.  IRC 415 Compensation for a Limitation Year shall include amounts earned but not paid during the Limitation Year solely because of the timing of pay periods and pay dates, provided the amounts are paid during the first few weeks of the next Limitation Year, the amounts are included on a uniform and consistent basis with respect to all similarly situated employees, and no compensation is included in more than one Limitation Year.

 

 

  

- 8 -

  

 

For Limitation Years beginning on or after July 1, 2007, IRC 415 Compensation for a Limitation Year shall also include compensation paid by the later of 2 1⁄2 months after an Employee’s severance from employment with the employer maintaining the Plan or the end of the Limitation Year that includes the date of the Employee’s severance from employment with the employer maintaining the Plan, if:

 

	
  

	
(i)

	
the payment is regular compensation for services during the Employee’s regular working hours, or compensation for services outside the Employee’s regular working hours (such as overtime or shift differential), commissions, bonuses, or other similar payments, and, absent a severance from employment, the payments would have been paid to the Employee while the Employee continued in employment with the Employer;

 

	
  

	
(ii)

	
the payment is for unused accrued bona fide sick, vacation or other leave that the Employee would have been able to use if employment had continued; or

 

	
  

	
(iii)

	
the payment is received by the Employee pursuant to a nonqualified unfunded deferred compensation plan and would have been paid at the same time if employment had continued, but only to the extent includible in gross income.

 

Any payments not described above shall not be considered IRC 415 Compensation if paid after severance from employment, even if they are paid by the later of 21⁄2 months after the date of severance from employment or the end of the Limitation Year that includes the date of severance from employment, except, (1) payments to an individual who does not currently perform services for the employer by reason of qualified military service (within the meaning of Section 414(u)(1) of the Internal Revenue Code) to the extent these payments do not exceed the amounts the individual would have received if the individual had continued to perform services for the employer rather than entering qualified military service, or (2) compensation paid to a Participant who is permanently and totally disabled, as defined in Section 22(e)(3) of the Internal Revenue Code, provided that salary continuation applies to all Participants who are permanently and totally disabled for a fixed or determinable period, or the Participant was not a Highly Compensated Employee immediately before becoming disabled.

 

Back pay, within the meaning of Section 1.415(c)-2(g)(8) of the Treasury regulations, shall be treated as IRC 415 Compensation for the Limitation Year to which the back pay relates to the extent the back pay represents wages and compensation that would otherwise be included under this definition.

 

 

  

- 9 -

  

 

For Limitation Years beginning after December 31, 1997, IRC 415 Compensation paid or made available during such Limitation Year shall include amounts that would otherwise be included in IRC 415 Compensation but for an election under Section 125(a), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b) of the Internal Revenue Code.

 

For Limitation Years beginning after December 31, 2000, IRC 415 Compensation shall also include any elective amounts that are not includible in the gross income of the Employee by reason of Section 132(f)(4) of the Internal Revenue Code.

 

For Limitation Years beginning after December 31, 2001, IRC 415 Compensation shall also include deemed Section 125 compensation.  Deemed Section 125 compensation is an amount that is excludable under Section 106 of the Internal Revenue Code that is not available to a participant in cash in lieu of group health coverage under a Section 125 arrangement solely because the Participant is unable to certify that he or she has other health coverage. Amounts are deemed Section 125 compensation only if the employer does not request or otherwise collect information regarding the Participant’s other health coverage as part of the enrollment process for the health plan.

 

IRC 415 Compensation shall not include amounts paid as compensation to a nonresident alien, as defined in Section 7701(b)(1)(B) of the Internal Revenue Code, who is not a Participant in the Plan to the extent the compensation is excludable from gross income and is not effectively connected with the conduct of a trade or business within the United States.

 

(c)           "Defined Benefit Compensation Limitation" shall mean 100 percent of a Participant’s High Three-Year Average Compensation, payable in the form of a straight life annuity.

 

In the case of a Participant who has had a severance from employment with the employer, the Defined Benefit Compensation Limitation applicable to the Participant in any Limitation Year beginning after the date of severance shall be automatically adjusted by multiplying the limitation applicable to the Participant in the prior Limitation Year by the annual adjustment factor under Section 415(d) of the Internal Revenue Code; provided, however, if the Employer maintains a plan for the purpose of restoring benefits that certain Participants may not receive under the Plan due to the limitations on contributions and benefits imposed by Section 415 of the Internal Revenue Code and/or due to the limitations imposed on compensation under Section 401(a)(17) of said Code, and if the Participant or his Beneficiary receives or has received a benefit or benefits under such restoration plan and a portion of such benefit or benefits would be duplicated by the cost-of-living adjustment provided under this paragraph, then such cost-of-living adjustment that would represent a duplication of benefits shall not apply to the Participant or Beneficiary unless the value of the benefit payable from the restoration plan that would cause such duplication of benefits under the Plan is returned to the Employer by the Participant or Beneficiary within 60 days of the effective date of such cost-of-living adjustment or the date that such cost-of-living adjustment is announced by the Internal Revenue Service, whichever date is later; and provided further, however, that such 60-day period may be extended by the Committee if, in its opinion, reasonable cause exists for such an extension.  The adjusted compensation limit shall apply to Limitation Years ending with or within the calendar year of the date of the adjustment, but a Participant’s benefits shall not reflect the adjusted limit prior to January 1 of that calendar year.

 

 

 

  

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In the case of a Participant who is rehired after a severance from employment, the Defined Benefit Compensation Limitation is the greater of 100 percent of the Participant’s High Three-Year Average Compensation, as determined prior to the severance from employment, as adjusted pursuant to the preceding paragraph, if applicable; or 100 percent of the Participant’s High Three-Year Average Compensation, as determined after the severance from employment under subsection (g) below.

 

(d)           "Defined Benefit Dollar Limitation" shall mean, effective for Limitation Years ending after December 31, 2001, $160,000, automatically adjusted under Section 415(d) of the Internal Revenue Code effective January 1 of each year, and payable in the form of a straight life annuity.  The new limitation shall apply to Limitation Years ending with or within the calendar year of the date of the adjustment, but a Participant’s benefits shall not reflect the adjusted limit prior to January 1 of that calendar year.  The automatic annual adjustment of the Defined Benefit Dollar Limitation shall apply to Participants who have had a separation from employment.

 

(e)           "employer" shall mean the employer that adopts this Plan, and all members of a controlled group of corporations, as defined in Section 414(b) of the Internal Revenue Code, as modified by Section 415(h), all commonly controlled trades or businesses (as defined in Section 414(c) of the Internal Revenue Code, as modified, except in the case of a brother-sister group of trades or businesses under common control, by Section 415(h)), or affiliated service groups (as defined in Section 414(m)) of which the adopting employer is a part, and any other entity required to be aggregated with the employer pursuant to Section 414(o) of the Internal Revenue Code.

 

(f)           "Formerly Affiliated Plan of the Employer" shall mean a plan that, immediately prior to the cessation of affiliation, was actually maintained by the employer and, immediately after the cessation of affiliation, is not actually maintained by the employer.  For this purpose, cessation of affiliation means the event that causes an entity to no longer be considered the employer, such as the sale of a member of the controlled group of corporations, as defined in Section 414(b) of the Internal Revenue Code, as modified by Section 415(h), to an unrelated corporation, or that causes a plan to not actually be maintained by the employer, such as transfer of plan sponsorship outside a controlled group.

 

 

  

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(g)           "High Three-Year Average Compensation" shall mean the average compensation for the three consecutive years of service (or, if the Participant has less than three consecutive years of service, the Participant’s longest consecutive period of service, including fractions of years, but not less than one year) with the employer that produces the highest average.  A year of service with the employer is the 12-consecutive month period that begins on January 1 of each calendar year.  In the case of a Participant who is rehired by the employer after a severance from employment, the Participant’s high three-year average compensation shall be calculated by excluding all years for which the Participant performs no services for and receives no compensation from the employer (the break period) and by treating the years immediately preceding and following the break period as consecutive.  A Participant’s compensation for a year of service shall not include compensation in excess of the limitation under Section 401(a)(17) of the Internal Revenue Code that is in effect for the calendar year in which such year of service begins.

 

(h)           "Limitation Year" shall mean the calendar year unless a different 12-month period has been elected by the employer in accordance with regulations or rulings issued by the Internal Revenue Service.  All qualified plans maintained by the employer must use the same Limitation Year.  If the Limitation Year is amended to a different 12-consecutive month period, the new Limitation Year must begin on a date within the Limitation Year in which the amendment is made.

 

(i)           "Maximum Permissible Benefit" shall mean the lesser of the Defined Benefit Dollar Limitation or the Defined Benefit Compensation Limitation (both adjusted where required as provided below).

 

	
  

	
(i)

	
Adjustment for Less Than 10 Years of Participation or Service:  If the Participant has less than 10 Years of Participation in the Plan, the Defined Benefit Dollar Limitation shall be multiplied by a fraction, the numerator of which is the number of Years (or part thereof, but not less than one year) of Participation in the Plan, and the denominator of which is 10. In the case of a Participant who has less than 10 Years of Service with the employer, the Defined Benefit Compensation Limitation shall be multiplied by a fraction, the numerator of which is the number of Years (or part thereof, but not less than 1 year) of Service with the employer, and the denominator of which is 10.

 

	
  

	
(ii)

	
Adjustment of Defined Benefit Dollar Limitation for Benefit Commencement Before Age 62 or after Age 65:  Effective for benefits commencing in Limitation Years ending after December 31, 2001, the Defined Benefit Dollar Limitation shall be adjusted if the annuity starting date of the Participant’s benefit is before age 62 or after age 65. If the annuity starting date is before age 62, the Defined Benefit Dollar Limitation shall be adjusted under subsection (A) below, as modified by subsection (C) below in this subsection (ii).  If the annuity starting date is after age 65, the Defined Benefit Dollar Limitation shall be adjusted under subsection (B) below, as modified by subsection (C) below in this subsection (ii).

 

 

 

  

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(A)

	
Adjustment of Defined Benefit Dollar Limitation for Benefit Commencement Before Age 62:

 

I.           Limitation Years Beginning Before July 1, 2007.  If the annuity starting date for the Participant’s benefit is prior to age 62 and occurs in a Limitation Year beginning before July 1, 2007, the Defined Benefit Dollar Limitation for the Participant’s annuity starting date is the annual amount of a benefit payable in the form of a straight life annuity commencing at the Participant’s annuity starting date that is the actuarial equivalent of the Defined Benefit Dollar Limitation (adjusted for Years of Participation less than 10, if required) with actuarial equivalence computed using whichever of the following produces the smaller annual amount: (a) the interest rate specified in Section 1.1(B)(1)(b) of the Plan and the mortality table (or other tabular factor) specified in Section 1.1(B)(1)(a) of the Plan; or (b) a 5-percent interest rate assumption and the applicable mortality table as prescribed in Revenue Ruling 2001-62.

 

II.           Limitation Years Beginning on or After July 1, 2007.

 

(a) Plan Does Not Have Immediately Commencing Straight Life Annuity Payable at Both Age 62 and the Age of Benefit Commencement.  If the annuity starting date for the Participant’s benefit is prior to age 62 and occurs in a Limitation Year beginning on or after July 1, 2007, and the Plan does not have an immediately commencing straight life annuity payable at both age 62 and the age of benefit commencement, the Defined Benefit Dollar Limitation for the Participant’s annuity starting date is the annual amount of a benefit payable in the form of a straight life annuity commencing at the Participant’s annuity starting date that is the actuarial equivalent of the Defined Benefit Dollar Limitation (adjusted for Years of Participation less than 10, if required) with actuarial equivalence computed using a 5 percent interest rate assumption and the Applicable Mortality Table defined in Section 1.1(B)(2)(a) of the Plan for that annuity starting date (and expressing the Participant’s age based on completed calendar months as of the annuity starting date).

 

 

  

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(b) Plan Has Immediately Commencing Straight Life Annuity Payable at Both Age 62 and the Age of Benefit Commencement. If the annuity starting date for the Participant’s benefit is prior to age 62 and occurs in a Limitation Year beginning on or after July 1, 2007, and the Plan has an immediately commencing straight life annuity payable at both age 62 and the age of benefit commencement, the Defined Benefit Dollar Limitation for the Participant’s annuity starting date is the lesser of the limitation determined under subsection (a) immediately above and the Defined Benefit Dollar Limitation (adjusted for Years of Participation less than 10, if required) multiplied by the ratio of the annual amount of the immediately commencing straight life annuity under the Plan at the Participant’s annuity starting date to the annual amount of the immediately commencing straight life annuity under the Plan at age 62, both determined without applying the limitations of this Section 4.1(A).

 

	
  

	
(B)

	
Adjustment of Defined Benefit Dollar Limitation for Benefit Commencement After Age 65:

 

I.           Limitation Years Beginning Before July 1, 2007.  If the annuity starting date for the Participant’s benefit is after age 65 and occurs in a Limitation Year beginning before July 1, 2007, the Defined Benefit Dollar Limitation for the Participant’s annuity starting date is the annual amount of a benefit payable in the form of a straight life annuity commencing at the Participant’s annuity starting date that is the actuarial equivalent of the Defined Benefit Dollar Limitation (adjusted for Years of Participation less than 10, if required) with actuarial equivalence computed using whichever of the following produces the smaller annual amount: (1) the interest rate specified in Section 1.1(B)(1)(b) of the Plan and the mortality table (or other tabular factor) specified in Section 1.1(B)(1)(a) of the Plan; or (2) a 5-percent interest rate assumption and the applicable mortality table as prescribed in Revenue Ruling 2001-62.

 

II.           Limitation Years Beginning After July 1, 2007.

 

(a)           Plan Does Not Have Immediately Commencing Straight Life Annuity Payable at Both Age 65 and the Age of Benefit Commencement.  If the annuity starting date for the Participant’s benefit is after age 65 and occurs in a Limitation Year beginning on or after July 1, 2007, and the Plan does not have an immediately commencing straight life annuity payable at both age 65 and the age of benefit commencement, the Defined Benefit Dollar Limitation at the Participant’s annuity starting date is the annual amount of a benefit payable in the form of a straight life annuity commencing at the Participant’s annuity starting date that is the actuarial equivalent of the Defined Benefit Dollar Limitation (adjusted for Years of Participation less than 10, if required), with actuarial equivalence computed using a 5 percent interest rate assumption and the Applicable Mortality Table defined in Section 1.1(B)(2)(a) of the Plan for that annuity starting date (and expressing the participant’s age based on completed calendar months as of the annuity starting date).

 

 

  

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(b)           Plan Has Immediately Commencing Straight Life Annuity Payable at Both Age 65 and the Age of Benefit Commencement.  If the annuity starting date for the Participant’s benefit is after age 65 and occurs in a Limitation Year beginning on or after July 1, 2007, and the Plan has an immediately commencing straight life annuity payable at both age 65 and the age of benefit commencement, the Defined Benefit Dollar Limitation at the Participant’s annuity starting date is the lesser of the limitation determined under subsection (a) immediately above and the Defined Benefit Dollar Limitation (adjusted for Years of Participation less than 10, if required) multiplied by the ratio of the annual amount of the adjusted immediately commencing straight life annuity under the Plan at the Participant’s annuity starting date to the annual amount of the adjusted immediately commencing straight life annuity under the Plan at age 65, both determined without applying the limitations of this Section 4.1(A).  For this purpose, the adjusted immediately commencing straight life annuity under the Plan at the Participant’s annuity starting date is the annual amount of such annuity payable to the Participant, computed disregarding the Participant’s accruals after age 65 but including actuarial adjustments even if those actuarial adjustments are used to offset accruals; and the adjusted immediately commencing straight life annuity under the Plan at age 65 is the annual amount of such annuity that would be payable under the Plan to a hypothetical participant who is age 65 and has the same accrued benefit as the Participant.

 

	
  

	
(C)

	
Notwithstanding the other requirements of this subsection (ii), no adjustment shall be made to the Defined Benefit Dollar Limitation to reflect the probability of a Participant’s death between the annuity starting date and age 62, or between age 65 and the annuity starting date, as applicable, if benefits are not forfeited upon the death of the Participant prior to the annuity starting date.  To the extent benefits are forfeited upon death before the annuity starting date, such an adjustment shall be made.  For this purpose, no forfeiture shall be treated as occurring upon the Participant’s death if the Plan does not charge Participants for providing a qualified preretirement survivor annuity, as defined in Section 417(c) of the Internal Revenue Code, upon the Participant’s death.

 

 

  

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(iii)

	
Minimum Benefit Permitted:  Notwithstanding anything else in this section to the contrary, the benefit otherwise accrued or payable to a Participant under this Plan shall be deemed not to exceed the Maximum Permissible Benefit if:

 

	
  

	
(A)

	
the retirement benefits payable for a Limitation Year under any form of benefit with respect to such Participant under this Plan and under all other defined benefit plans (without regard to whether a Plan has been terminated) ever maintained by the employer do not exceed $10,000 multiplied by a fraction, the numerator of which is the Participant’s number of Years (or part thereof, but not less than one year) of Service (not to exceed 10) with the employer, and the denominator of which is 10; and

 

	
  

	
(B)

	
the employer (or a predecessor employer) has not at any time maintained a defined contribution plan in which the Participant participated (for this purpose, mandatory employee contributions under a defined benefit plan, individual medical accounts under Section 401(h) of the Internal Revenue Code, and accounts for postretirement medical benefits established under Section 419A(d)(1) of the Internal Revenue Code are not considered a separate defined contribution plan).

 

(j)           "Predecessor Employer" shall mean, if the employer maintains a plan that provides a benefit which the Participant accrued while performing services for a former employer, the former employer with respect to the Participant in the plan.  A former entity that antedates the employer is also a predecessor employer with respect to a participant if, under the facts and circumstances, the employer constitutes a continuation of all or a portion of the trade or business of the former entity.

 

(k)           "Severance from Employment" shall mean the Employee ceases to be an employee of the employer maintaining the Plan.  An Employee does not have a severance from employment if, in connection with a change of employment, the Employee’s new employer maintains the Plan with respect to the Employee.

 

 

  

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(l)           "Year of Participation."  The Participant shall be credited with a Year of Participation (computed to fractional parts of a year) for each accrual computation period for which the following conditions are met: (1) the Participant is credited with at least the number of hours of service (or period of service if the elapsed time method is used) for benefit accrual purposes, required under the terms of the Plan in order to accrue a benefit for the accrual computation period, and (2) the Participant is included as a participant under the eligibility provisions of the Plan for at least one day of the accrual computation period. If these two conditions are met, the portion of a Year of Participation credited to the Participant shall equal the amount of benefit accrual service credited to the Participant for such accrual computation period. A Participant who is permanently and totally disabled within the meaning of Section 415(c)(3)(C)(i) of the Internal Revenue Code for an accrual computation period shall receive a Year of Participation with respect to that period.  In addition, for a Participant to receive a Year of Participation (or part thereof) for an accrual computation period, the Plan must be established no later than the last day of such accrual computation period.  In no event shall more than one Year of Participation be credited for any 12-month period.

 

(m)           "Year of Service."  For purposes of Section 4.1(A)(6)(g), the Participant shall be credited with a Year of Service (computed to fractional parts of a year) for each accrual computation period for which the Participant is credited with at least the number of hours of service (or period of service if the elapsed time method is used) for benefit accrual purposes, required under the terms of the Plan in order to accrue a benefit for the accrual computation period, taking into account only service with the employer or a predecessor employer.

 

(7)           Other Rules.

 

(a)           Benefits Under Terminated Plans.  If a defined benefit plan maintained by the employer has terminated with sufficient assets for the payment of benefit liabilities of all plan participants and a Participant in the Plan has not yet commenced benefits under the Plan, the benefits provided pursuant to the annuities purchased to provide the Participant’s benefits under the terminated plan at each possible annuity starting date shall be taken into account in applying the limitations of this Section 4.1(A).  If there are not sufficient assets for the payment of all participants’ benefit liabilities, the benefits taken into account shall be the benefits that are actually provided to the Participant under the terminated plan.

 

(b)           Benefits Transferred From the Plan.  If a participant’s benefits under a defined benefit plan maintained by the employer are transferred to another defined benefit plan maintained by the employer and the transfer is not a transfer of distributable benefits pursuant to Section 1.411(d)-4, Q&A-3(c), of the Treasury regulations, the transferred benefits are not treated as being provided under the transferor plan (but are taken into account as benefits provided under the transferee plan).  If a participant’s benefits under a defined benefit plan maintained by the employer are transferred to another defined benefit plan that is not maintained by the employer and the transfer is not a transfer of distributable benefits pursuant to Section 1.411(d)-4, Q&A-3(c), of the Treasury regulations, the transferred benefits are treated by the employer’s plan as if such benefits were provided under annuities purchased to provide benefits under a plan maintained by the employer that terminated immediately prior to the transfer with sufficient assets to pay all participants’ benefit liabilities under the plan.  If a participant’s benefits under a defined benefit plan maintained by the employer are transferred to another defined benefit plan in a transfer of distributable benefits pursuant to Section 1.411(d)-4, Q&A-3(c), of the Treasury regulations, the amount transferred is treated as a benefit paid from the transferor plan.

 

 

  

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(c)           Formerly Affiliated Plans of the Employer.  A Formerly Affiliated Plan of the Employer shall be treated as a plan maintained by the employer, but the Formerly Affiliated Plan of the Employer shall be treated as if it had terminated immediately prior to the cessation of affiliation with sufficient assets to pay participants’ benefit liabilities under the plan and had purchased annuities to provide benefits.

 

(d)           Plans of a Predecessor Employer.  If the employer maintains a defined benefit plan that provides benefits accrued by a Participant while performing services for a predecessor employer, the Participant’s benefits under a plan maintained by the predecessor employer shall be treated as provided under a plan maintained by the employer. However, for this purpose, the plan of the predecessor employer shall be treated as if it had terminated immediately prior to the event giving rise to the predecessor employer relationship with sufficient assets to pay participants’ benefit liabilities under the plan, and had purchased annuities to provide benefits; the employer and the predecessor employer shall be treated as if they were a single employer immediately prior to such event and as unrelated employers immediately after the event; and if the event giving rise to the predecessor relationship is a benefit transfer, the transferred benefits shall be excluded in determining the benefits provided under the plan of the predecessor employer.

 

(e)           Special Rules.  The limitations of this Section 4.1(A) shall be determined and applied taking into account the rules in Section 1.415(f)-1(d), (e) and (h) of the Treasury regulations.

 

(f)           Aggregation with Multiemployer Plans.

 

(i)           If the employer maintains a multiemployer plan, as defined in Section 414(f) of the Internal Revenue Code, and the multiemployer plan so provides, only the benefits under the multiemployer plan that are provided by the employer shall be treated as benefits provided under a plan maintained by the employer for purposes of this Section 4.1(A).

 

 

  

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(ii)           Effective for Limitation Years ending after December 31, 2001, a multiemployer plan shall be disregarded for purposes of applying the compensation limitation of Sections 4.1(A)(6)(c) and 4.1(A)(6)(i)(i) to a plan which is not a multiemployer plan."

 

 

3.           Effective for limitation years beginning on or after July 1, 2007, Section 4.1(J)(6) of the Plan is amended to read in its entirety as follows:

 

"(6)           Section 415 compliance:  Except in the case where payment of the Participant's retirement income (other than a form of payment that is subject to Section 417(e) of the Internal Revenue Code, including lump-sum distributions and other forms of distribution that provide payments in the form of a decreasing annuity or for a period less than the life of the recipient) commences no more than 12 months after the retroactive Annuity Starting Date, payment of the Participant's retirement income, including any interest adjustments, shall satisfy the requirements of Section 415 of the Internal Revenue Code if the date retirement income payments actually commence is substituted for the retroactive Annuity Starting Date for all purposes, including for purposes of determining the interest rate and the mortality table described in Section 4.1(A)(6)(a)(ii)(A) hereof."

 

IN WITNESS WHEREOF, CAPITAL SOUTHWEST CORPORATION has caused this instrument to be executed by its duly authorized officer on this ____ day of __________________, 2009.

	  	
CAPITAL SOUTHWEST CORPORATION

	  	  
	  	  
	  	  
	  	
By                                                                 

	  	  
	  	
Title:                                                                 

  

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