Document:

Exhibit 4.8

 

 

 

AMENDMENT TO SECOND SUPPLEMENTAL INDENTURE

INTERNATIONAL TRANSMISSION COMPANY

TO

BNY MIDWEST TRUST COMPANY

Trustee

____________________

Dated as of January 19, 2005

____________________

Supplementing the First Mortgage and Deed of
Trust

Dated as of July 15, 2003

Amending the Second Supplemental Indenture
and the First Mortgage Bonds, Series B

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE ONE DEFINITIONS AND OTHER
  PROVISIONS OF GENERAL APPLICATION

  	
   

  	
  2

  	
   

  
	
   

  	
  Section 101.

  	
  Definitions

  	
   

  	
  2

  	
   

  
	
  ARTICLE TWO AMENDMENTS

  	
   

  	
  2

  	
   

  
	
   

  	
  Section 201.

  	
  Amendments to the Second Supplemental
  Indenture

  	
   

  	
  2

  	
   

  
	
   

  	
  Section 202.

  	
  Amendment to the First Mortgage Bonds,
  Series B

  	
   

  	
  2

  	
   

  
	
  ARTICLE THREE MISCELLANEOUS PROVISIONS

  	
   

  	
  2

  	
   

  

 

 

 

i

 

 

AMENDMENT TO SECOND SUPPLEMENTAL INDENTURE, dated as of January 19,
2005, between International Transmission Company, a corporation organized and
existing under the laws of the State of Michigan (herein called the “Company”), having its principal office at
39500 Orchard Hill Place, Novi, MI 48375 and BNY MIDWEST TRUST COMPANY, a
corporation duly organized and existing under the laws of the State of
Illinois, as Trustee (herein called the “Trustee”),
the office of the Trustee at which on the date hereof its corporate trust
business is principally administered being 2 N. LaSalle Street, Suite 1020,
Chicago, Illinois 60630.

RECITALS OF THE COMPANY

WHEREAS, the Company has heretofore executed and delivered to the
Trustee a First Mortgage and Deed of Trust dated as of July 15, 2003 (the “Original Indenture”) providing for the
issuance by the Company from time to time of its bonds, notes and other
evidence of indebtedness to be issued in one or more series (in the Original
Indenture and herein called the “Securities”)
and to provide security for the payment of the principal of and premium, if
any, and interest, if any, on the Securities; and

WHEREAS, the Company has heretofore executed and delivered to the
Trustee a First Supplemental Indenture dated as of July 15, 2003 (the “First Supplemental Indenture”) to the Original Indenture
providing for the issuance by the Company of $185,000,000 4.45% First Mortgage
Bonds, Series A due July 15, 2013; and

WHEREAS, the Company has heretofore executed and delivered to the
Trustee a Second Supplemental Indenture dated as of July 15, 2003 (the “Second Supplemental Indenture”) to the Original Indenture
(the Original Indenture, as amended and supplemented by the First Supplemental
Indenture and the Second Supplemental Indenture, the “Indenture’) providing for the issuance by
the Company of First Mortgage Bonds, Series B, due February 28, 2006 (the “First Mortgage Bonds, Series B”); and

WHEREAS, the Company, in the exercise of the power and authority
conferred upon and reserved to it under the provisions of the Original
Indenture and pursuant to appropriate resolutions of the Board of Directors,
has duly determined to make, execute and deliver to the Trustee this Amendment
to Second Supplemental Indenture (the “Amendment
to Second Supplemental Indenture”) in order to amend the Second
Supplemental Indenture and the First Mortgage Bonds, Series B as set forth in
Article Two hereof; and

WHEREAS, all things necessary to make this Amendment to Second
Supplemental Indenture a valid, binding and legal agreement of the Company,
have been done;

NOW, THEREFORE, THIS AMENDMENT TO SECOND
SUPPLEMENTAL INDENTURE WITNESSETH that, in order to amend the First Mortgage
Bonds, Series B, established in the Second Supplemental Indenture, it is
mutually covenanted and agreed as follows:

 

 

 

 

ARTICLE ONE

DEFINITIONS AND
OTHER PROVISIONS

OF GENERAL APPLICATION

Section 101.           Definitions.  Each capitalized term that is used herein and
is defined in the Original Indenture shall have the meaning specified in the
Original Indenture unless such term is otherwise defined herein.

ARTICLE TWO

AMENDMENTS

Section
201.           Amendments to the Second
Supplemental Indenture.

 

(a)           Section 201 of the
Second Supplemental Indenture shall be amended to read as follows:

“Section
201.  Title of the Series B Bonds.
This Second Supplemental Indenture hereby creates a series of Securities
designated as the “First Mortgage Bonds, Series B, due March 19, 2007” of the
Company (the “Series B Bonds”).”

 

(b)           Exhibit
A of the Second Supplemental Indenture is amended by substituting “March 19,
2007” for each reference therein to “February 28, 2006.”

 

Section 202.           Amendment to the First
Mortgage Bonds, Series B. Each of the First Mortgage Bonds, Series B
heretofore issued and outstanding on the date hereof shall be amended by
substituting “March 19, 2007” for each reference therein to “February 28, 2006.”

 

ARTICLE THREE

MISCELLANEOUS PROVISIONS

The Trustee makes
no undertaking or representations in respect of, and shall not be responsible
in any manner whatsoever for and in respect of, the validity or sufficiency of
this Amendment to Second Supplemental Indenture or the proper authorization or
the due execution hereof by the company or for or in respect of the recitals
and statements contained herein, all of which recitals and statements are made
solely by the Company.  The Trustee shall
not be accountable for the use or the application by the Company of the Series
B Bonds or the proceeds thereof.

 

Except as
expressly amended and supplemented by the First Supplemental Indenture, by the
Second Supplemental Indenture and by this Amendment to Second Supplemental
Indenture, the Original Indenture, the Second Supplemental Indenture and the
First Mortgage Bonds, Series B shall continue in full force and effect in
accordance with the provisions thereof and the Original Indenture is in all
respects hereby ratified and confirmed.  This
Amendment to Second 

 

 

 

2

 

Supplemental Indenture and all of its provisions shall be deemed a part
of the Original Indenture in the manner and to the extent herein and therein
provided.

 

This Amendment
to Second Supplemental Indenture shall be governed by and construed in
accordance with the law of the State of New York, except, if this Amendment to
Second Supplemental Indenture shall become qualified and shall become subject
to the Trust Indenture Act, to the extent that the Trust Indenture Act shall be
applicable, and except to the extent that the law of any jurisdiction wherein
any portion of the Mortgaged Property is located shall mandatorily govern the
creation of a mortgage lien on and security interest in, or perfection,
priority or enforcement of the Lien of the Indenture or exercise of remedies
with respect to, such portion of the Mortgaged Property.

 

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

 

 

 

3

 

 

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

 

 

	
  INTERNATIONAL
  TRANSMISSION COMPANY

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: Edward
  M. Rahill

  
	
   

  	
  Title: Vice
  President and CFO

  
	
   

  
	
  BNY MIDWEST
  TRUST COMPANY, as Trustee

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: Roxane
  Ellwanger

  
	
   

  	
  Title: Assistant
  Vice PresidentExhibit 10.2

 

Kohlberg
Kravis Roberts & Co. L.P.

9 West 57th
Street

New York, New York  10019

 

 

June 1, 2005

 

 

International Transmission Holdings Limited
Partnership

c/o Ironhill Transmission, LLC

c/o Greenbaum Rowe Smith & Davis LLP

6 Becker Farm Road

Roseland, New Jersey 07068

 

ITC Holdings Corp. and International Transmission
Company

39500 Orchard Hill Place

Novi, Michigan  48375

 

Ladies and Gentlemen:

 

Reference
is made to that letter agreement (the “Letter Agreement”) dated February 28,
2003 among International Transmission Holdings Limited Partnership (the
“Partnership”), International Transmission Company (the “Company”) and
Kohlberg, Kravis Roberts & Co. L.P. concerning the engagement (the
“Engagement”) of us by the Partnership and the Company to provide advisory,
consulting and financial services to the Partnership and the Company and to
their respective divisions, subsidiaries and affiliates (collectively,
“ITC”).  In exchange for our provision of
services pursuant to the Engagement, the Company agreed to pay us an annual
advisory fee equal to $700,000, such fee to be increased at a rate of 7%
annually, payable in quarterly installments in arrears at the end of each
quarter.

 

The
Partnership, ITC Holdings Corp. (“Holdings”), the Company and we hereby agree
to terminate the Engagement on the following terms and conditions:

 

1.               Upon the completion
of an initial public offering of equity securities by Holdings pursuant to an
effective registration statement, the Engagement shall automatically be terminated
and we shall have no further obligations to provide ITC or the Partnership any
advisory, consulting or financial services.

 

2.               As compensation for
our agreement to terminate the Engagement, Holdings agrees to pay us a one-time
advisory fee in a total amount equal to four million dollars ($4,000,000.00)
upon the effectiveness of the termination of the Engagement.

 

3.               In connection with
any future advisory, consulting or financial services (“Additional Retentions”)
that we, or any of our affiliates or partners, perform at ITC’s request after
the termination of the Engagement, we may invoice Holdings or the Company

 

 

for fees that are mutually agreed upon in advance of the Additional
Retention for which Holdings or the Company is invoiced.

 

4.               In addition to any
fees that may be payable to us under the Engagement or any Additional
Retention, the Partnership and the Company each also agree to reimburse us and
our affiliates, from time to time upon request, for all reasonable
out-of-pocket expenses incurred, including unreimbursed expenses incurred to
the date hereof, in connection with the Engagement or any Additional Retention,
including travel expenses and expenses of our counsel.

 

5.               Holdings and the
Company each agree to indemnify and hold us, our affiliates (including, without
limitation, affiliated investment entities) and their and our respective
partners, executives, officers, directors, employees, agents and controlling
persons (each such person, including us, being an “Indemnified Party”) harmless
from and against (i) any and all losses, claims, damages and liabilities
(including, without limitation, losses, claims, damages and liabilities arising
from or in connection with legal actions brought by or on behalf of the holders
or future holders of the outstanding securities of Holdings or the Company or
creditors or future creditors of Holdings or the Company), joint, several or
otherwise, to which such Indemnified Party may become subject under any
applicable federal or state law, or otherwise, related to or arising out of any
activity contemplated by the Letter Agreement, this agreement, the Engagement
or any Additional Retention, and our or our affiliates’ performance of any
services contemplated by the foregoing and (ii) any and all losses, claims, damages
and liabilities, joint, several or otherwise, related to or arising out of any
action or omission or alleged action or omission related to the Partnership,
the Company, International Transmission Company, LLC and Holdings or any of
their respective direct or indirect subsidiaries or the securities or
obligations of any such entities.  Holdings
and the Company will further, subject to the proviso to the immediately
preceding sentence, reimburse any Indemnified Party for all expenses (including
counsel fees and disbursements) upon request as they are incurred in connection
with the investigation of, preparation for or defense of any pending or
threatened claim or any action or proceeding arising from any of the foregoing,
whether or not such Indemnified Party is a party and whether or not such claim,
action or proceeding is initiated or brought by the Partnership; provided,
however, that neither Holdings nor the Company will be liable under the
foregoing indemnification provision (and amounts previously paid that are
determined not required to be paid by Holdings or the Company pursuant to the
terms of this paragraph shall be repaid promptly) to the extent that any loss,
claim, damage, liability or expense is found in a final judgment by a court to
have resulted from our willful misconduct, bad faith or gross negligence.  Holdings and the Company each agree that no
Indemnified Party shall have any liability (whether direct or indirect, in
contract or tort or otherwise) to Holdings or the Company related to or arising
out of the Letter Agreement, this agreement, the Engagement or any Additional
Retention, or our affiliates’ performance of any services contemplated by the
foregoing, except to the extent that any loss, claim, damage, liability or
expense is found in a final, non-appealable judgment by a court to have
resulted from our willful misconduct, bad faith or gross negligence.

 

Holdings
and the Company each also agree that, without the prior written consent of each
of us, they will not settle, compromise or consent to the entry of any judgment
in any pending or threatened claim, action or proceeding to which an
Indemnified Party is an actual or potential party and in respect of which
indemnification could be sought under the indemnification provision in the
immediately preceding paragraph, unless such settlement,

 

2

 

compromise or consent includes an unconditional
release of each Indemnified Party from all liability arising out of such claim,
action or proceeding.

 

Promptly
after receipt by an Indemnified Party of notice of any suit, action, proceeding
or investigation with respect to which an Indemnified Party may be entitled to
indemnification hereunder, such Indemnified Party will notify each of Holdings
and the Company in writing of the assertion of such claim or the commencement
of such suit, action, proceeding or investigation, but the failure so to notify
Holdings or the Company shall not relieve Holdings or the Company from any
liability which it may have hereunder, except to the extent that such failure
has materially prejudiced Holdings or the Company.  If Holdings or the Company elects within a
reasonable time after receipt of such notice, Holdings or the Company may
participate at its own expense in the defense of such suit, action, proceeding
or investigation.  Each Indemnified Party
may employ separate counsel to represent it or defend it in any such suit,
action, proceeding or investigation in which it may become involved or is named
as a defendant and, in such event, the reasonable fees and expense of such
counsel shall be borne by Holdings or the Company; provided, however,
that neither Holdings nor the Company will be required in connection with any
such suit, action, proceeding or investigation, or separate but substantially
similar actions arising out of the same general allegations or circumstances,
to pay the fees and disbursements of more than one separate counsel (other than
local counsel) for all Indemnified Parties in any single action or
proceeding.  Whether or not Holdings or
the Company participates in the defense of any claim, all of Holdings, the
Company and we shall cooperate in the defense thereof and shall furnish such
records, information and testimony, and attend such conferences, discovery
proceedings, hearings, trials and appeals, as may be reasonably requested in
connection therewith.

 

If the
indemnification provided for in clause (i) of the first sentence of this
paragraph 5 is finally judicially determined by a court of competent
jurisdiction to be unavailable to an Indemnified Party, or insufficient to hold
any Indemnified Party harmless, in respect of any losses, claims, damages or
liabilities (other than any losses, claims, damages or liabilities found in a
final judgment by a court to have resulted from our willful misconduct, bad
faith or gross negligence), then Holdings and the Company, on the one hand, in
lieu of indemnifying such Indemnified Party, and we, on the other hand, will
contribute to the amount paid or payable by such Indemnified Party as a result
of such losses, claims, damages or liabilities (i) in such proportion as is
appropriate to reflect the relative benefits received, or sought to be
received, by Holdings and the Company on the one hand and us, solely in our
capacity as an advisor under the Letter Agreement or this agreement, as
applicable, on the other hand in connection with the transactions to which such
indemnification, contribution or reimbursement is sought, or (ii) if (but only
if) the allocation provided by clause (i) above is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause (i) but also the relative fault of Holdings and
the Company on the one hand and us on the other, as well as any other relevant
equitable considerations; provided, however, that in no event
shall our aggregate contribution hereunder exceed the amount of fees actually
received by us in respect of the transaction at issue pursuant to the Letter
Agreement or this agreement, as applicable. 
The amount paid or payable by a party as a result of the losses, claims,
damages and liabilities referred to above will be deemed to include any legal
or other fees or expenses reasonably incurred in defending any action or
claim.  Holdings, the Company and we
agree that it would not be just and equitable if

 

3

 

contribution pursuant to this paragraph were
determined by pro rata allocation or by any other method which does not take
into account the equitable considerations referred to in this paragraph.  The indemnity, contribution and expense
reimbursement obligations that each of Holdings and the Company has under this
letter shall be in addition to any liability Holdings, the Company or ITC may
have, and notwithstanding any other provision of this letter, shall survive the
termination of the Engagement or any Additional Retention pursuant to the
Letter Agreement or this agreement, as applicable.

 

6.               Any advice or
opinions provided by us may not be disclosed or referred to publicly or to any
third party (other than Holdings’ legal, tax, financial or other advisors),
except in accordance with our prior written consent.

 

7.               In connection with
any Additional Retention, we shall act as an independent contractor, with
duties solely to ITC.  The provisions
hereof shall inure to the benefit of and shall be binding upon the parties
hereto and their respective successors and assigns.  Nothing in this agreement, expressed or implied,
is intended to confer on any person other than the parties hereto or their
respective successors and assigns, and, to the extent expressly set forth
herein, the Indemnified Parties, any rights or remedies under or by reason of
this agreement.  Without limiting the
generality of the foregoing, the parties acknowledge that nothing in this
agreement, expressed or implied, is intended to confer on any present or future
holders of any securities of Holdings or its subsidiaries or affiliates, or any
present or future creditor of Holdings or its subsidiaries or affiliates, any
rights or remedies under or by reason of this agreement or any performance
hereunder.

 

8.               This agreement
shall be governed by and construed in accordance with the laws of New York without
regard to principles of conflicts of law.

 

9.               Each party hereto
represents and warrants that the execution and delivery of this agreement by
such party has been duly authorized by all necessary action of such party.

 

10.         If any term or provision
of this agreement or the application thereof shall, in any jurisdiction and to
any extent, be invalid and unenforceable, such term or provision shall be
ineffective, as to such jurisdiction, solely to the extent of such invalidity
or unenforceability without rendering invalid or unenforceable any remaining
terms or provisions hereof or affecting the validity or enforceability of such
term or provision in any other jurisdiction. 
To the extent permitted by applicable law, the parties hereto waive any
provision of law that renders any term or provision of this agreement invalid
or unenforceable in any respect.

 

11.         Each party hereto waives
all right to trial by jury in any action, proceeding or counterclaim (whether
based upon contract, tort or otherwise) related to or arising out of our
retention pursuant to, or our performance of the services contemplated by this
agreement.

 

12.         It is expressly
understood that the foregoing paragraphs 2-6, 10 and 11 in their entirety,
survive any termination of this agreement.

 

4

 

If the
foregoing sets forth the understanding between us, please so indicate on the
enclosed signed copy of this letter in the space provided therefor and return
it to us, whereupon this letter shall constitute a binding agreement among us.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  Kohlberg Kravis Roberts & Co. L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

 

AGREED TO AND ACCEPTED

 

	
  International Transmission Holdings Limited
  Partnership

  
	
   

  
	
  By:

  	
  Ironhill Transmission, LLC

  

 

	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: Lewis Eisenberg

  
	
   

  	
   

  	
  Title: Manager

  

 

 

	
  ITC Holdings Corp.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
   

  
	
  International Transmission Company

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

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