Document:

Exhibit 10.01

 

[FORM OF]

INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION AGREEMENT (this “Agreement”)
is made and entered into as of             ,
by and between Farmer Bros. Co., a Delaware corporation (the “Company”),
and              
(“Indemnitee”).

 

RECITALS

 

WHEREAS, highly competent persons have become more
reluctant to serve publicly-held corporations as directors, officers or in
other capacities unless they are provided with adequate protection through
insurance or adequate indemnification against inordinate risks of claims and
actions against them arising out of their service to and activities on behalf
of the corporation;

 

WHEREAS, the Board of Directors of the Company (the “Board”)
has determined that, in order to attract and retain qualified individuals, the
Company will attempt to maintain on an ongoing basis, at its sole expense,
liability insurance to protect persons serving the Company and its subsidiaries
from certain liabilities. Although the furnishing of such insurance has been a
customary and widespread practice among United States-based corporations and
other business enterprises, the Company believes that, given current market
conditions and trends, such insurance may be available to it in the future
only at higher premiums and with more exclusions. At the same time, directors,
officers and other persons in service to corporations or business enterprises
are being increasingly subjected to expensive and time-consuming litigation
relating to, among other things, matters that traditionally would have been
brought only against the Company or business enterprise itself. The Certificate
of Incorporation (the “Charter”) and the Bylaws of the Company require
indemnification of the officers and directors of the Company. Indemnitee may also
be entitled to indemnification pursuant to applicable provisions of the
Delaware General Corporation Law (the “DGCL”). The Charter, the Bylaws
and the DGCL expressly provide that the indemnification provisions set forth
therein are not exclusive, and thereby contemplate that contracts may be
entered into between the Company and members of the board of directors,
officers and other persons with respect to indemnification;

 

WHEREAS, the uncertainties relating to such
insurance and to indemnification have increased the difficulty of attracting
and retaining such persons;

 

WHEREAS, the Board has determined that the increased
difficulty in attracting and retaining such persons is detrimental to the best
interests of the Company’s stockholders and that the Company should act to
assure such persons that there will be increased certainty of such protection
in the future;

 

WHEREAS, it is reasonable, prudent and necessary for
the Company contractually to obligate itself to indemnify, and to advance
expenses on behalf of, such persons to the fullest extent permitted by
applicable law so that they will serve or continue to serve the Company free
from undue concern that they will not be so indemnified;

 

WHEREAS, this Agreement is a supplement to and in
furtherance of the Charter, the Bylaws of the Company and any resolutions
adopted pursuant thereto, and shall not be deemed a substitute therefor, nor
diminish or abrogate any rights of Indemnitee thereunder; and

 

WHEREAS, Indemnitee does not regard the protection
available under the Company’s Charter, Bylaws and insurance as adequate in the
present circumstances, and may not be willing to serve as an officer or
director without adequate protection, and the Company desires Indemnitee to
serve in such capacity. Indemnitee is willing to serve, continue to serve and
to take on additional service for or on behalf of the Company on the condition
that he or she be so indemnified;

 

NOW, THEREFORE, in consideration of the premises and
the covenants contained herein and Indemnitee’s agreement to serve as a
director or officer after the date hereof, the Company and Indemnitee do hereby
covenant and agree as follows:

 

 

1.                                       Definitions. As used in this Agreement:

 

(a)                                  References to “agent” shall mean any
person who is or was a director, officer, or employee of the Company or a Subsidiary
of the Company or other person authorized by the Company to act for the
Company, to include such person serving in such capacity as a director,
officer, employee, fiduciary or other official of another corporation,
partnership, limited liability company, joint venture, trust or other
enterprise at the request of, for the convenience of, or to represent the
interests of the Company or a Subsidiary of the Company.

 

(b)                                 The terms “Beneficial Owner” and “Beneficial
Ownership” shall have the meanings set forth in Rule 13d-3 promulgated
under the Exchange Act as in effect on the date hereof.

 

(c)                                  A “Change in Control” shall be deemed
to occur upon the earliest to occur after the date of this Agreement of any of
the following events:

 

(i)                                     Acquisition of Stock by Third Party. Any Person is or becomes the Beneficial
Owner, directly or indirectly, of securities of the Company representing
fifteen percent (15%) or more of the combined voting power of the Company’s
then outstanding securities entitled to vote generally in the election of
directors, unless (1) the change in the relative Beneficial Ownership of
the Company’s securities by any Person results solely from a reduction in the
aggregate number of outstanding shares of securities entitled to vote generally
in the election of directors, or (2) such acquisition was approved in
advance by the Continuing Directors and such acquisition would not constitute a
Change in Control under part (iii) of this definition;

 

(ii)                                  Change in Board of Directors. Individuals who, as of the date hereof,
constitute the Board, and any new director whose election by the Board or
nomination for election by the Company’s stockholders was approved by a vote of
at least two thirds of the directors then still in office who were directors on
the date hereof or whose election for nomination for election was previously so
approved (collectively, the “Continuing Directors”), cease for any
reason to constitute at least a majority of the members of the Board;

 

(iii)                               Corporate Transactions. The effective date of a reorganization,
merger or consolidation of the Company (a “Business Combination”), in
each case, unless, following such Business Combination: (1) all or
substantially all of the individuals and entities who were the Beneficial
Owners of securities entitled to vote generally in the election of directors
immediately prior to such Business Combination beneficially own, directly or
indirectly, more than 51% of the combined voting power of the then outstanding
securities of the Company entitled to vote generally in the election of
directors resulting from such Business Combination (including, without
limitation, a corporation which as a result of such transaction owns the
Company or all or substantially all of the Company’s assets either directly or
through one or more Subsidiaries) in substantially the same proportions as
their ownership, immediately prior to such Business Combination, of the
securities entitled to vote generally in the election of directors; (2) no
Person (excluding any corporation resulting from such Business Combination) is
the Beneficial Owner, directly or indirectly, of 15% or more of the combined
voting power of the then outstanding securities entitled to vote generally in
the election of directors of such corporation except to the extent that such
ownership existed prior to the Business Combination; and (3) at least a
majority of the Board of Directors of the corporation resulting from such
Business Combination were Continuing Directors at the time of the execution of
the initial agreement, or of the action of the Board of Directors, providing
for such Business Combination;

 

(iv)                              Liquidation. The approval by the stockholders of the Company of a complete
liquidation of the Company or an agreement or series of agreements for the
sale or disposition by the Company of all or substantially all of the Company’s
assets (or, if such approval is not required, the decision by the Board to
proceed with such a liquidation, sale, or disposition in one transaction or a series of
related transactions); or

 

(v)                                 Other Events. There occurs any other event of a nature
that would be required to be reported in response to Item 6(e) of Schedule 14A
of Regulation 14A (or a response to any similar item on any similar schedule or
form) promulgated under the Exchange Act, whether or not the Company is then
subject to such reporting requirement.

 

2

 

(d)                                 “Corporate Status” describes the
status of a person who is or was a director, officer, trustee, general partner,
managing member, fiduciary, employee or agent of the Company or of any other
Enterprise which such person is or was serving at the request of the Company.

 

(e)                                  “Delaware Court” shall mean the Court
of Chancery of the State of Delaware.

 

(f)                                    “Disinterested Director” shall mean a
director of the Company who is not and was not a party to the Proceeding in
respect of which indemnification is sought by Indemnitee.

 

(g)                                 “Enterprise” shall mean the Company
and any other corporation, constituent corporation (including any constituent
of a constituent) absorbed in a consolidation or merger to which the Company
(or any of its wholly owned subsidiaries) is a party, limited liability
company, partnership, joint venture, trust, employee benefit plan or other
enterprise of which Indemnitee is or was serving at the request of the Company
as a director, officer, trustee, general partner, managing member, fiduciary,
employee or agent.

 

(h)                                 “Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended.

 

(i)                                     “Expenses” shall include all direct
and indirect costs, fees and expenses of any type or nature whatsoever,
including, without limitation, attorneys’ fees and costs, retainers, court
costs, transcript costs, fees and disbursements of experts, witness fees, fees
and disbursements of private investigators and professional advisors, travel
expenses, duplicating costs, printing and binding costs, telephone and fax
transmission charges, postage, delivery service fees, secretarial services,
reasonable compensation for time spent by Indemnitee for which he is not otherwise
compensated for by the Company or any third party, and all other disbursements
or expenses in connection with prosecuting, defending, preparing to prosecute
or defend, investigating, being or preparing to be a witness in, or otherwise
participating in, a Proceeding or enforcing a right to indemnification under
this Agreement. Expenses also shall include Expenses incurred in connection
with any appeal resulting from any Proceeding, including without limitation the
premium, security for, and other costs relating to any cost bond, supersedeas
bond, or other appeal bond or its equivalent. Expenses, however, shall not
include amounts paid in settlement by Indemnitee or the amount of judgments or
fines against Indemnitee.

 

(j)                                     “Independent Counsel” shall mean a law
firm or a member of a law firm that is experienced in matters of corporation
law and neither presently is, nor in the past five years has been, retained to
represent: (i) the Company or Indemnitee in any matter material to either
such party (other than with respect to matters concerning Indemnitee under this
Agreement, or of other indemnitees under similar indemnification agreements);
or (ii) any other party to the Proceeding giving rise to a claim for
indemnification hereunder. Notwithstanding the foregoing, the term “Independent
Counsel” shall not include any person who, under the applicable standards
of professional conduct then prevailing, would have a conflict of interest in
representing either the Company or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement. The Company agrees to pay the
reasonable fees of the Independent Counsel referred to above and to fully
indemnify such counsel against any and all Expenses, claims, liabilities and
damages arising out of or relating to this Agreement or its engagement pursuant
hereto.

 

(k)                                  References to “fines” shall include
any excise tax assessed on Indemnitee with respect to any employee benefit
plan; references to “serving at the request of the Company” shall
include any service as a director, officer, employee, agent or fiduciary of the
Company which imposes duties on, or involves services by, such director,
officer, employee, agent or fiduciary with respect to an employee benefit plan,
its participants or beneficiaries; and if Indemnitee acted in good faith and in
a manner Indemnitee reasonably believed to be in the best interests of the
participants and beneficiaries of an employee benefit plan, Indemnitee shall be
deemed to have acted in a manner “not opposed to the best interests of the
Company” as referred to in this Agreement.

 

(l)                                     The term “Person” shall have the
meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act
as in effect on the date hereof; provided, however, that “Person” shall
exclude: (i) the Company; (ii) any Subsidiary of the Company; (iii) any
employee benefit plan of the Company including, without limitation, the Company’s
Employee Stock Ownership Plan, or of any Subsidiary of the Company, or any
Person or entity organized, appointed or established by the Company for or
pursuant to the terms of any such plan; (iv) a corporation owned directly
or indirectly by the stockholders of the Company in substantially the same
proportions as their 

 

3

 

ownership
of stock of the Company; and (v) Roy F. Farmer, deceased, his widow Emily
Farmer and their descendants (collectively, “Farmer Family Members”),
the estates of Farmer Family Members and the personal representatives thereof,
and trusts, partnerships and other entities created by or for the benefit of
Farmer Family Members and the trustees, partners and members thereof.

 

(m)                               A “Potential Change in Control” shall be deemed to have occurred
if: (i) the Company enters into an agreement or arrangement, the
consummation of which would result in the occurrence of a Change in Control; (ii) any
Person or the Company publicly announces an intention to take or consider taking
actions which if consummated would constitute a Change in Control; (iii) any
Person who becomes the Beneficial Owner, directly or indirectly, of securities
of the Company representing 5% or more of the combined voting power of the
Company’s then outstanding securities entitled to vote generally in the
election of directors increases its Beneficial Ownership of such securities by
5% or more over the percentage so owned by such Person on the date hereof; or (iv) the
Board adopts a resolution to the effect that, for purposes of this Agreement, a
Potential Change in Control has occurred.

 

(n)                                 The term “Proceeding” shall include
any threatened, pending or completed action, suit, arbitration, alternate
dispute resolution mechanism, investigation, inquiry, administrative hearing or
any other actual, threatened or completed proceeding, whether brought in the
right of the Company or otherwise and whether of a civil (including intentional
or unintentional tort claims), criminal, administrative or investigative nature,
in which Indemnitee was, is or will be involved as a party or otherwise by
reason of the fact that Indemnitee is or was a director or officer of the
Company, by reason of any action (or failure to act) taken by him or of any
action (or failure to act) on his part while acting as a director or
officer of the Company, or by reason of the fact that he is or was serving at
the request of the Company as a director, officer, trustee, general partner,
managing member, fiduciary, employee or agent of any other Enterprise, in each
case whether or not serving in such capacity at the time any liability or
expense is incurred for which indemnification, reimbursement, or advancement of
expenses can be provided under this Agreement.

 

(o)                                 The term “Subsidiary,” with respect to
any Person, shall mean any corporation or other entity of which a majority of
the voting power of the voting equity securities or equity interest is owned,
directly or indirectly, by that Person.

 

2.                                       Agreement To Serve. Indemnitee agrees to serve and/or continue
to serve as an agent of the Company, at its will (or under separate agreement,
if such agreement exists), in the capacity Indemnitee currently serves as an
agent of the Company; provided, however, that nothing contained in this
Agreement is intended to or shall (i) restrict the ability of Indemnitee
to resign at any time and for any reason from any current or future position or
positions, (ii) create any right to continued employment of Indemnitee in
any current or future position or positions, or (iii) restrict the ability
of the Company to terminate the employment or agency of Indemnitee at any time
and for any reason (subject to compliance with the terms of any employment or
other applicable agreement to which the Company (or any of its Subsidiaries)
and Indemnitee are parties).

 

3.                                       Indemnification in Third-Party Proceedings. The Company shall indemnify and hold
harmless Indemnitee in accordance with the provisions of this Section 3 if,
by reason of his Corporate Status, Indemnitee was, is, or is threatened to be
made, a party to or a participant (as a witness or otherwise) in any
Proceeding, other than a Proceeding by or in the right of the Company to
procure a judgment in its favor. Pursuant to this Section 3, Indemnitee
shall be indemnified against all Expenses, judgments, penalties, fines and
amounts paid in settlement (including all interest, assessments and other
charges paid or payable in connection with or in respect of such Expenses,
judgments, fines, penalties and amounts paid in settlement) actually and
reasonably incurred by Indemnitee or on his behalf in connection with such
Proceeding or any claim, issue or matter therein, if Indemnitee acted in good
faith and in a manner he reasonably believed to be in or not opposed to the best
interests of the Company and, in the case of a criminal Proceeding, had no
reasonable cause to believe that his conduct was unlawful.

 

4.                                       Indemnification in Proceedings by or in the
Right of the Company. The
Company shall indemnify and hold harmless Indemnitee in accordance with the
provisions of this Section 4 if, by reason of his Corporate Status,
Indemnitee was, is, or is threatened to be made, a party to or a participant
(as a witness or otherwise) in any Proceeding brought by or in the right of the
Company to procure a judgment in its favor. Pursuant to this Section 4,
Indemnitee shall be indemnified against all Expenses actually and reasonably
incurred by Indemnitee or on his 

 

4

 

behalf
in connection with such Proceeding or any claim, issue or matter therein, if
Indemnitee acted in good faith and in a manner he reasonably believed to be in
or not opposed to the best interests of the Company. Notwithstanding the
foregoing, no indemnification shall be made under this Section 4 in
respect of any claim, issue or matter as to which Indemnitee shall have been
finally adjudged by a court to be liable to the Company, unless and only to the
extent that any court in which the Proceeding was brought or the Delaware Court
shall determine upon application that, despite the adjudication of liability
but in view of all the circumstances of the case, Indemnitee is fairly and
reasonably entitled to indemnification for such Expenses as the court shall
deem proper.

 

5.                                       Indemnification for Expenses of a Party Who
is Wholly or Partly Successful.
Notwithstanding any other provisions of this Agreement, to the extent that
Indemnitee is, by reason of his Corporate Status, a party to (or a participant
in) and is successful, on the merits or otherwise, in any Proceeding or in
defense of any claim, issue or matter therein, in whole or in part, the Company
shall indemnify and hold harmless Indemnitee against all Expenses actually and
reasonably incurred by him or on his behalf in connection therewith. If
Indemnitee is not wholly successful in such Proceeding but is successful, on
the merits or otherwise, as to one or more but less than all claims, issues or
matters in such Proceeding, the Company shall indemnify and hold harmless Indemnitee
against all Expenses actually and reasonably incurred by him or on his behalf
in connection with each successfully resolved claim, issue or matter. If
Indemnitee is not wholly successful in such Proceeding, the Company also shall
indemnify and hold harmless Indemnitee against all Expenses reasonably incurred
in connection with a claim, issue or matter related to any claim, issue or
matter on which Indemnitee was successful. For purposes of this Section and
without limitation, the termination of any claim, issue or matter in such a
Proceeding by dismissal, with or without prejudice, shall be deemed to be a
successful result as to such claim, issue or matter.

 

6.                                       Indemnification for Expenses of a Witness. Notwithstanding any other provision of this
Agreement, to the extent that Indemnitee is, by reason of his Corporate Status,
a witness in any Proceeding to which Indemnitee is not a party, he shall be
indemnified and held harmless against all Expenses actually and reasonably
incurred by him or on his behalf in connection therewith.

 

7.                                       Additional Indemnification

 

(a)                                  Notwithstanding any limitation in Sections 3,
4 or 5, the Company shall indemnify and hold harmless Indemnitee if, by reason
of his Corporate Status, Indemnitee is a party to or threatened to be made a
party to or participant in any Proceeding (including a Proceeding by or in the
right of the Company to procure a judgment in its favor) against all Expenses,
judgments, fines, penalties and amounts paid in settlement (including all
interest, assessments and other charges paid or payable in connection with or
in respect of such Expenses, judgments, fines, penalties and amounts paid in
settlement) actually and reasonably incurred by Indemnitee in connection with
the Proceeding. No indemnity shall be made under this Section 7(a) on
account of Indemnitee’s conduct which constitutes a breach of Indemnitee’s duty
of loyalty to the Company or its stockholders or is an act or omission not in
good faith or which involves intentional misconduct or a knowing violation of
the law.

 

(b)                                 Notwithstanding any limitation in Sections 3,
4, 5 or 7(a), the Company shall indemnify and hold harmless Indemnitee if
Indemnitee is a party to or threatened to be made a party to any Proceeding
(including a Proceeding by or in the right of the Company to procure a judgment
in its favor) against all Expenses, judgments, fines, penalties and amounts
paid in settlement (including all interest, assessments and other charges paid
or payable in connection with or in respect of such Expenses, judgments, fines,
penalties and amounts paid in settlement) actually and reasonably incurred by
Indemnitee in connection with the Proceeding.

 

8.                                       Contribution

 

(a)                                  Whether or not the indemnification provided
in Sections 3, 4, 5 and 7 hereof is available, in respect of any threatened,
pending or completed action, suit or proceeding in which the Company is jointly
liable with Indemnitee (or would be if joined in such action, suit or
proceeding), the Company shall pay, in the first instance, the entire amount of
any judgment or settlement of such action, suit or proceeding without requiring
Indemnitee to contribute to such payment and the Company hereby waives and
relinquishes any right of contribution it may have against Indemnitee. The
Company shall not enter into any settlement of any action, suit or proceeding
in which the Company is jointly liable with Indemnitee (or would be if joined
in such action, suit or proceeding) unless such settlement provides for a full
and final release of all claims asserted against Indemnitee.

 

5

 

(b)                                 Without diminishing or impairing the
obligations of the Company set forth in the preceding subparagraph, if, for any
reason, Indemnitee shall elect or be required to pay all or any portion of any
judgment or settlement in any threatened, pending or completed action, suit or
proceeding in which the Company is jointly liable with Indemnitee (or would be
if joined in such action, suit or proceeding), the Company shall contribute to
the amount of expenses (including attorneys’ fees), judgments, fines and
amounts paid in settlement actually and reasonably incurred and paid or payable
by Indemnitee in proportion to the relative benefits received by the Company
and all officers, directors or employees of the Company, other than Indemnitee,
who are jointly liable with Indemnitee (or would be if joined in such action,
suit or proceeding), on the one hand, and Indemnitee, on the other hand, from
the transaction from which such action, suit or proceeding arose; provided,
however, that the proportion determined on the basis of relative benefit may,
to the extent necessary to conform to law, be further adjusted by
reference to the relative fault of the Company and all officers, directors or
employees of the Company other than Indemnitee who are jointly liable with
Indemnitee (or would be if joined in such action, suit or proceeding), on the
one hand, and Indemnitee, on the other hand, in connection with the events that
resulted in such expenses, judgments, fines or settlement amounts, as well as
any other equitable considerations which the Law may require to be
considered. The relative fault of the Company and all officers, directors or
employees of the Company, other than Indemnitee, who are jointly liable with
Indemnitee (or would be if joined in such action, suit or proceeding), on the
one hand, and Indemnitee, on the other hand, shall be determined by reference
to, among other things, the degree to which their actions were motivated by
intent to gain personal profit or advantage, the degree to which their
liability is primary or secondary and the degree to which their conduct is
active or passive.

 

(c)                                  The Company hereby agrees to fully indemnify
and hold Indemnitee harmless from any claims of contribution which may be
brought by officers, directors or employees of the Company, other than
Indemnitee, who may be jointly liable with Indemnitee.

 

(d)                                 To the fullest extent permissible under
applicable law, if the indemnification provided for in this Agreement is
unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of
indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee,
whether for judgments, fines, penalties, excise taxes, amounts paid or to be
paid in settlement and/or for Expenses, in connection with any claim relating
to an indemnifiable event under this Agreement, in such proportion as is deemed
fair and reasonable in light of all of the circumstances of such Proceeding in
order to reflect (i) the relative benefits received by the Company and
Indemnitee as a result of the event(s) and/or transaction(s) giving cause to
such Proceeding; and/or (ii) the relative fault of the Company (and its
directors, officers, employees and agents) and Indemnitee in connection with
such event(s) and/or transaction(s).

 

9.                                       Exclusions. Notwithstanding any provision in this Agreement, the Company shall
not be obligated under this Agreement to make any indemnity in connection with
any claim made against Indemnitee:

 

(a)                                  for which payment has actually been received
by or on behalf of Indemnitee under any insurance policy or other indemnity
provision, except with respect to any excess beyond the amount actually
received under any insurance policy, contract, agreement, other indemnity
provision or otherwise;

 

(b)                                 for an accounting of profits made from the
purchase and sale (or sale and purchase) by Indemnitee of securities of the
Company within the meaning of Section 16(b) of the Exchange Act or
similar provisions of state statutory law or common law;

 

(c)                                  except as otherwise provided in Sections 14(e) and
(f) hereof, prior to a Change in Control, in connection with any
Proceeding (or any part of any Proceeding) initiated by Indemnitee,
including any Proceeding (or any part of any Proceeding) initiated by
Indemnitee against the Company or its directors, officers, employees or other
indemnitees, unless (i) the Board authorized the Proceeding (or any part of
any Proceeding) prior to its initiation or (ii) the Company provides the
indemnification, in its sole discretion, pursuant to the powers vested in the
Company under applicable law;

 

(d)                                 for any Expenses, judgments, liabilities,
fines, penalties and amounts paid in settlement resulting from Indemnitee’s
conduct which is finally adjudged to have been willful misconduct, knowingly
fraudulent or deliberately dishonest; or

 

6

 

(e)                                  if a court of competent jurisdiction shall
finally determine that any indemnification hereunder is unlawful.

 

10.                                 Advances of Expenses; Defense of Claim

 

(a)                                  Notwithstanding any provision of this
Agreement to the contrary, and to the fullest extent permitted by applicable
law, the Company shall advance all Expenses incurred by or on behalf of Indemnitee
(or reasonably expected by Indemnitee to be incurred by Indemnitee within three
months) in connection with any Proceeding by reason of Indemnitee’s Corporate
Status within ten (10) days after the receipt by the Company of a
statement or statements requesting such advances from time to time, whether
prior to or after final disposition of any Proceeding. Advances shall be
unsecured and interest free. Advances shall be made without regard to
Indemnitee’s ability to repay the Expenses and without regard to Indemnitee’s ultimate
entitlement to indemnification under the other provisions of this Agreement.
Advances shall include any and all reasonable Expenses incurred pursuing a
Proceeding to enforce this right of advancement, including Expenses incurred
preparing and forwarding statements to the Company to support the advances
claimed. Indemnitee shall qualify for advances, to the fullest extent permitted
by applicable law, solely upon the execution and delivery to the Company of an
undertaking providing that Indemnitee undertakes to repay the advance to the
extent that it is ultimately determined that Indemnitee is not entitled to be
indemnified by the Company under the provisions of this Agreement, the Charter,
the Bylaws of the Company, applicable law or otherwise. This Section 10(a) shall
not apply to any claim made by Indemnitee for which indemnity is excluded
pursuant to Section 9.

 

(b)                                 The Company shall be entitled to participate
in any Proceeding at its own expense.

 

(c)                                  The Company shall not settle any action,
claim or Proceeding (in whole or in part) which would impose any Expense,
judgment, fine, penalty or limitation on Indemnitee without Indemnitee’s prior
written consent.

 

11.                                 Procedure for Notification and Application
for Indemnification

 

(a)                                  Indemnitee agrees to notify promptly the
Company in writing upon being served with any summons, citation, subpoena,
complaint, indictment, information or other document relating to any Proceeding
or matter which may be subject to indemnification or advancement of
Expenses covered hereunder. The failure of Indemnitee to so notify the Company
shall not relieve the Company of any obligation which it may have to
Indemnitee under this Agreement, or otherwise.

 

(b)                                 Indemnitee may deliver to the Company a
written application to indemnify and hold harmless Indemnitee in accordance
with this Agreement. Such application(s) may be delivered from time to
time and at such time(s) as Indemnitee deems appropriate in his sole
discretion. Following such a written application for indemnification by
Indemnitee, Indemnitee’s entitlement to indemnification shall be determined
according to Section 12(a) of this Agreement.

 

12.                                 Procedure Upon Application for
Indemnification

 

(a)                                  A determination, if required by applicable
law, with respect to Indemnitee’s entitlement to indemnification shall be made
in the specific case by one of the following methods, which shall be at the
election of the Board: (i) by a majority vote of the Disinterested
Directors, even though less than a quorum of the Board or (ii) by
Independent Counsel in a written opinion to the Board, a copy of which shall be
delivered to Indemnitee. The Company promptly shall advise Indemnitee in
writing with respect to any determination that Indemnitee is or is not entitled
to indemnification, including a description of any reason or basis for which
indemnification has been denied. If it is so determined that Indemnitee is
entitled to indemnification, payment to Indemnitee shall be made within ten (10) days
after such determination. Indemnitee shall reasonably cooperate with the
person, persons or entity making such determination with respect to Indemnitee’s
entitlement to indemnification, including providing to such person, persons or
entity upon reasonable advance request any documentation or information which
is not privileged or otherwise protected from disclosure and which is
reasonably available to Indemnitee and reasonably necessary to such
determination. Any costs or Expenses (including attorneys’ fees and
disbursements) incurred by 

 

7

 

Indemnitee
in so cooperating with the person, persons or entity making such determination
shall be borne by the Company (irrespective of the determination as to
Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies
and agrees to hold Indemnitee harmless therefrom.

 

(b)                                 In the event the determination of entitlement
to indemnification is to be made by Independent Counsel pursuant to Section 12(a) hereof,
the Independent Counsel shall be selected as provided in this Section 12(b).
The Independent Counsel shall be selected by the Board of Directors, and the Company
shall give written notice to Indemnitee advising him of the identity of the
Independent Counsel so selected and certifying that the Independent Counsel so
selected meets the requirements of “Independent Counsel” as defined in Section 1
of this Agreement. Indemnitee may, within ten (10) days after such written
notice of selection shall have been received, deliver to the Company a written
objection to such selection; provided, however, that such objection may be
asserted only on the ground that the Independent Counsel so selected does not
meet the requirements of “Independent Counsel” as defined in Section 1 of
this Agreement, and the objection shall set forth with particularity the
factual basis of such assertion. Absent a proper and timely objection, the
person so selected shall act as Independent Counsel. If such written objection
is so made and substantiated, the Independent Counsel so selected may not
serve as Independent Counsel unless and until such objection is withdrawn or a
court of competent jurisdiction has determined that such objection is without
merit. If, within twenty (20) days after submission by Indemnitee of a written
request for indemnification pursuant to Section 11(b) hereof, no
Independent Counsel shall have been selected and not objected to, either the
Company or Indemnitee may petition the Delaware Court for resolution of
any objection which shall have been made by Indemnitee to the Company’s
selection of Independent Counsel and/or for the appointment as Independent
Counsel of a person selected by the Delaware Court, and the person with respect
to whom all objections are so resolved or the person so appointed shall act as
Independent Counsel under Section 12(a) hereof. Upon the due
commencement of any judicial proceeding or arbitration pursuant to Section 14(a) of
this Agreement, Independent Counsel shall be discharged and relieved of any
further responsibility in such capacity (subject to the applicable standards of
professional conduct then prevailing). The Company shall pay any and all reasonable
fees and expenses of Independent Counsel incurred by such Independent Counsel
in connection with acting pursuant to Section 12(a) hereof,
regardless of the manner in which such Independent Counsel was selected or
appointed.

 

13.                                 Presumptions and Effect of Certain
Proceedings

 

(a)                                  In making a determination with respect to
entitlement to indemnification hereunder, the person, persons or entity making
such determination shall presume that Indemnitee is entitled to indemnification
under this Agreement if Indemnitee has submitted a request for indemnification
in accordance with Section 11(b) of this Agreement, and the Company
shall have the burden of proof to overcome that presumption in connection with
the making by any person, persons or entity of any determination contrary to
that presumption. Neither the failure of the Company (including by its
directors or Independent Counsel) to have made a determination prior to the
commencement of any action pursuant to this Agreement that indemnification is
proper in the circumstances because Indemnitee has met the applicable standard
of conduct, nor an actual determination by the Company (including by its
directors or Independent Counsel) that Indemnitee has not met such applicable
standard of conduct, shall be a defense to the action or create a presumption
that Indemnitee has not met the applicable standard of conduct.

 

(b)                                 If the person, persons or entity empowered or
selected under Section 12 of this Agreement to determine whether
Indemnitee is entitled to indemnification shall not have made a determination
within thirty (30) days after receipt by the Company of the request therefor,
the requisite determination of entitlement to indemnification shall be deemed
to have been made and Indemnitee shall be entitled to such indemnification,
absent (i) a misstatement by Indemnitee of a material fact, or an omission
of a material fact necessary to make Indemnitee’s statement not materially
misleading, in connection with the request for indemnification, or (ii) a
final judicial determination that any or all such indemnification is expressly
prohibited under applicable law; provided, however, that such 30-day period may be
extended for a reasonable time, not to exceed an additional fifteen (15) days,
if the person, persons or entity making the determination with respect to
entitlement to indemnification in good faith requires such additional time for
the obtaining or evaluating of documentation and/or information relating
thereto.

 

8

 

(c)                                  The termination of any Proceeding or of any
claim, issue or matter therein, by judgment, order, settlement or conviction,
or upon a plea of nolo contendere or its equivalent, shall not (except as
otherwise expressly provided in this Agreement) of itself adversely affect the
right of Indemnitee to indemnification or create a presumption that Indemnitee
did not act in good faith and in a manner which he reasonably believed to be in
or not opposed to the best interests of the Company or, with respect to any
criminal Proceeding, that Indemnitee had reasonable cause to believe that his
conduct was unlawful.

 

(d)                                 For purposes of any determination of good
faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s
action is based on the records or books of account of the Enterprise, including
financial statements, or on information supplied to Indemnitee by the officers
of the Enterprise in the course of their duties, or on the advice of legal
counsel for the Enterprise or on information or records given or reports made
to the Enterprise by an independent certified public accountant or by an
appraiser or other expert selected by the Enterprise. The provisions of this Section 13(d) shall
not be deemed to be exclusive or to limit in any way the other circumstances in
which Indemnitee may be deemed or found to have met the applicable
standard of conduct set forth in this Agreement.

 

(e)                                  The knowledge and/or actions, or failure to
act, of any other director, officer, trustee, partner, managing member,
fiduciary, agent or employee of the Enterprise shall not be imputed to
Indemnitee for purposes of determining the right to indemnification under this
Agreement.

 

14.                                 Remedies of Indemnitee

 

(a)                                  In the event that (i) a determination is
made pursuant to Section 12 of this Agreement that Indemnitee is not
entitled to indemnification under this Agreement, (ii) advancement of
Expenses, to the fullest extent permitted by applicable law, is not timely made
pursuant to Section 10 of this Agreement, (iii) no determination of
entitlement to indemnification shall have been made pursuant to Section 12(a) of
this Agreement within thirty (30) days after receipt by the Company of the
request for indemnification, (iv) payment of indemnification is not made
pursuant to Section 5, 6, or the last sentence of Section 12(a) of
this Agreement within ten (10) days after receipt by the Company of a
written request therefor, (v) a contribution payment is not made in a
timely manner pursuant to Section 8 of this Agreement, or (vi) payment
of indemnification pursuant to Section 3 or 4 of this Agreement is not
made within ten (10) days after a determination has been made that
Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an
adjudication by the Delaware Court to such indemnification, contribution or
advancement of Expenses. Alternatively, Indemnitee, at his option, may seek
an award in arbitration to be conducted by a single arbitrator pursuant to the
Commercial Arbitration Rules of the American Arbitration Association.
Except as set forth herein, the provisions of Delaware law (without regard to
its conflict of laws rules) shall apply to any such arbitration. The Company
shall not oppose Indemnitee’s right to seek any such adjudication or award in
arbitration.

 

(b)                                 In the event that a determination shall have
been made pursuant to Section 12(a) of this Agreement that Indemnitee
is not entitled to indemnification, any judicial proceeding or arbitration
commenced pursuant to this Section 14 shall be conducted in all respects
as a de novo trial, or arbitration, on the merits and Indemnitee shall not be
prejudiced by reason of that adverse determination. In any judicial proceeding
or arbitration commenced pursuant to this Section 14, Indemnitee shall be
presumed to be entitled to indemnification under this Agreement and the Company
shall have the burden of proving Indemnitee is not entitled to indemnification
or advancement of Expenses, as the case may be, and the Company may not
refer to or introduce into evidence any determination pursuant to Section 12(a) of
this Agreement adverse to Indemnitee for any purpose. If Indemnitee commences a
judicial proceeding or arbitration pursuant to this Section 14, Indemnitee
shall not be required to reimburse the Company for any advances pursuant to Section 10
until a final determination is made with respect to Indemnitee’s entitlement to
indemnification (as to which all rights of appeal have been exhausted or
lapsed).

 

(c)                                  If a determination shall have been made
pursuant to Section 12(a) of this Agreement that Indemnitee is
entitled to indemnification, the Company shall be bound by such determination
in any judicial proceeding or arbitration commenced pursuant to this Section 14,
absent (i) a misstatement by Indemnitee of a material fact, or an omission
of a material fact necessary to make Indemnitee’s statement not materially
misleading, in connection with the request for indemnification, or (ii) a
prohibition of such indemnification under applicable law.

 

9

 

(d)                                 The Company shall be precluded from asserting
in any judicial proceeding or arbitration commenced pursuant to this Section 14
that the procedures and presumptions of this Agreement are not valid, binding
and enforceable and shall stipulate in any such court or before any such
arbitrator that the Company is bound by all the provisions of this Agreement.

 

(e)                                  The Company shall indemnify and hold harmless
Indemnitee to the fullest extent permitted by law against all Expenses and, if
requested by Indemnitee, shall (within ten (10) days after the Company’s
receipt of such written request) advance to Indemnitee, to the fullest extent
permitted by applicable law, such Expenses which are incurred by Indemnitee in
connection with any judicial proceeding or arbitration brought by Indemnitee (i) to
enforce his rights under, or to recover damages for breach of, this Agreement
or any other indemnification, advancement or contribution agreement or
provision of the Charter, or the Company’s Bylaws now or hereafter in effect;
or (ii) for recovery or advances under any insurance policy maintained by
any person for the benefit of Indemnitee, regardless of whether Indemnitee
ultimately is determined to be entitled to such indemnification, advance,
contribution or insurance recovery, as the case may be.

 

(f)                                    Interest shall be paid by the Company to
Indemnitee at the legal rate under Delaware law for amounts which the Company
indemnifies or is obliged to indemnify for the period commencing with the date
on which Indemnitee requests indemnification, contribution, reimbursement or
advancement of any Expenses and ending with the date on which such payment is
made to Indemnitee by the Company.

 

15.                                 Establishment of Trust. In the event of a Potential Change in
Control, the Company shall, upon written request by Indemnitee, create a “Trust”
for the benefit of Indemnitee and from time to time upon written request of
Indemnitee shall fund such Trust in an amount sufficient to satisfy any and all
Expenses reasonably anticipated at the time of each such request to be incurred
in connection with investigating, preparing for, participating in or defending
any Proceedings, and any and all judgments, fines, penalties and amounts paid
in settlement (including all interest, assessments and other charges paid or
payable in connection with or in respect of such judgments, fines penalties and
amounts paid in settlement) in connection with any and all Proceedings from
time to time actually paid or claimed, reasonably anticipated or proposed to be
paid. The trustee of the Trust (the “Trustee”) shall be a bank or trust
company or other individual or entity chosen by Indemnitee and reasonably
acceptable to the Company. Nothing in this Section 15 shall relieve the
Company of any of its obligations under this Agreement. The amount or amounts
to be deposited in the Trust pursuant to the foregoing funding obligation shall
be determined by mutual agreement of Indemnitee and the Company or, if the
Company and Indemnitee are unable to reach such an agreement, by Independent
Counsel selected in accordance with Section 12(b) of this Agreement.
The terms of the Trust shall provide that, except upon the consent of both
Indemnitee and the Company, upon a Change in Control: (a) the Trust shall
not be revoked or the principal thereof invaded, without the written consent of
Indemnitee; (b) the Trustee shall advance, to the fullest extent permitted
by applicable law, within two (2) business days of a request by Indemnitee
and upon the execution and delivery to the Company of an undertaking providing
that Indemnitee undertakes to repay the advance to the extent that it is
ultimately determined that Indemnitee is not entitled to be indemnified by the
Company, any and all Expenses to Indemnitee; (c) the Trust shall continue
to be funded by the Company in accordance with the funding obligations set
forth above; (d) the Trustee shall promptly pay to Indemnitee all amounts
for which Indemnitee shall be entitled to indemnification pursuant to this
Agreement or otherwise; and (e) all unexpended funds in such Trust shall
revert to the Company upon mutual agreement by Indemnitee and the Company or,
if Indemnitee and the Company are unable to reach such an agreement, by
Independent Counsel selected in accordance with Section 12(b) of this
Agreement, that Indemnitee has been fully indemnified under the terms of this
Agreement. The Trust shall be governed by Delaware law (without regard to its
conflicts of laws rules) and the Trustee shall consent to the exclusive
jurisdiction of the Delaware Court in accordance with Section 23 of this
Agreement.

 

16.                                 Security. Notwithstanding anything herein to the contrary, to the extent
requested by Indemnitee and approved by the Board, the Company may at any
time and from time to time provide security to Indemnitee for the Company’s
obligations hereunder through an irrevocable bank line of credit, funded trust
or other collateral. Any such security, once provided to Indemnitee, may not
be revoked or released without the prior written consent of Indemnitee.

 

10

 

17.                                 Non-Exclusivity; Survival of Rights;
Insurance; Subrogation

 

(a)                                  The rights of indemnification and to receive
advancement of Expenses as provided by this Agreement shall not be deemed
exclusive of any other rights to which Indemnitee may at any time be
entitled under applicable law, the Charter, the Company’s Bylaws, any
agreement, a vote of stockholders or a resolution of directors, or otherwise.
No amendment, alteration or repeal of this Agreement or of any provision hereof
shall limit or restrict any right of Indemnitee under this Agreement in respect
of any action taken or omitted by such Indemnitee in his Corporate Status prior
to such amendment, alteration or repeal. To the extent that a change in
applicable law, whether by statute or judicial decision, permits greater
indemnification or advancement of Expenses than would be afforded currently
under the Charter, the Company’s Bylaws or this Agreement, it is the intent of
the parties hereto that Indemnitee shall enjoy by this Agreement the greater
benefits so afforded by such change. No right or remedy herein conferred is
intended to be exclusive of any other right or remedy, and every other right
and remedy shall be cumulative and in addition to every other right and remedy
given hereunder or now or hereafter existing at law or in equity or otherwise.
The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other right or
remedy.

 

(b)                                 The DGCL, the Charter and the Company’s
Bylaws permit the Company to purchase and maintain insurance or furnish similar
protection or make other arrangements including, but not limited to, providing
a trust fund, letter of credit, or surety bond (“Indemnification
Arrangements”) on behalf of Indemnitee against any liability asserted
against him or incurred by or on behalf of him or in such capacity as a
director, officer, employee or agent of the Company, or arising out of his
status as such, whether or not the Company would have the power to indemnify
him against such liability under the provisions of this Agreement or under the
DGCL, as it may then be in effect. The purchase, establishment, and
maintenance of any such Indemnification Arrangement shall not in any way limit
or affect the rights and obligations of the Company or of Indemnitee under this
Agreement except as expressly provided herein, and the execution and delivery
of this Agreement by the Company and Indemnitee shall not in any way limit or
affect the rights and obligations of the Company or the other party or parties
thereto under any such Indemnification Arrangement.

 

(c)                                  To the extent that the Company maintains an
insurance policy or policies providing liability insurance for directors,
officers, trustees, partners, managing members, fiduciaries, employees, or
agents of the Company or of any other Enterprise which such person serves at
the request of the Company, Indemnitee shall be covered by such policy or
policies in accordance with its or their terms to the maximum extent of the
coverage available for any such director, officer, trustee, partner, managing
member, fiduciary, employee or agent under such policy or policies. If, at the
time the Company receives notice from any source of a Proceeding as to which
Indemnitee is a party or a participant (as a witness or otherwise), the Company
has director and officer liability insurance in effect, the Company shall give
prompt notice of such Proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf
of Indemnitee, all amounts payable as a result of such Proceeding in accordance
with the terms of such policies.

 

(d)                                 In the event of any payment under this
Agreement, the Company shall be subrogated to the extent of such payment to all
of the rights of recovery of Indemnitee, who shall execute all papers required
and take all action necessary to secure such rights, including execution of
such documents as are necessary to enable the Company to bring suit to enforce
such rights.

 

(e)                                  The Company’s obligation to indemnify or
advance Expenses hereunder to Indemnitee who is or was serving at the request
of the Company as a director, officer, trustee, partner, managing member, fiduciary,
employee or agent of any other Enterprise shall be reduced by any amount
Indemnitee has actually received as indemnification or advancement of expenses
from such Enterprise.

 

18.                                 Duration of Agreement. All agreements and obligations of the
Company contained herein shall continue during the period Indemnitee serves as
a director or officer of the Company or as a director, officer, trustee,
partner, managing member, fiduciary, employee or agent of any other
corporation, partnership, joint venture, trust, employee benefit plan or other
Enterprise which Indemnitee serves at the request of the Company and shall
continue thereafter so long as Indemnitee shall be subject to any possible
Proceeding (including any rights of appeal thereto and any Proceeding commenced
by Indemnitee pursuant to Section 14 of this Agreement) by reason of his 

 

11

 

Corporate
Status, whether or not he is acting in any such capacity at the time any
liability or expense is incurred for which indemnification can be provided
under this Agreement.

 

19.                                 Severability. If any provision or provisions of this
Agreement shall be held to be invalid, illegal or unenforceable for any reason
whatsoever: (a) the validity, legality and enforceability of the remaining
provisions of this Agreement (including, without limitation, each portion of
any Section, paragraph or sentence of this Agreement containing any such
provision held to be invalid, illegal or unenforceable, that is not itself
invalid, illegal or unenforceable) shall not in any way be affected or impaired
thereby and shall remain enforceable to the fullest extent permitted by law; (b) such
provision or provisions shall be deemed reformed to the extent necessary to conform to
applicable law and to give the maximum effect to the intent of the parties
hereto; and (c) to the fullest extent possible, the provisions of this
Agreement (including, without limitation, each portion of any Section,
paragraph or sentence of this Agreement containing any such provision held to
be invalid, illegal or unenforceable, that is not itself invalid, illegal or
unenforceable) shall be construed so as to give effect to the intent manifested
thereby.

 

20.                                 Enforcement and Binding Effect

 

(a)                                  The Company expressly confirms and agrees
that it has entered into this Agreement and assumed the obligations imposed on
it hereby in order to induce Indemnitee to serve as a director or officer of
the Company, and the Company acknowledges that Indemnitee is relying upon this
Agreement in serving as a director or officer of the Company.

 

(b)                                 Without limiting any of the rights of
Indemnitee under the Charter or Bylaws of the Company as they may be
amended from time to time, this Agreement constitutes the entire agreement
between the parties hereto with respect to the subject matter hereof and
supersedes all prior agreements and understandings, oral, written and implied,
between the parties hereto with respect to the subject matter hereof. If the
DGCL or any other applicable law is amended after the date hereof to permit the
Company to indemnify Indemnitee for Expenses or liabilities, or to indemnify
Indemnitee with respect to any action or Proceeding, not contemplated by this
Agreement, then this Agreement (without any further action by either party
hereto) shall automatically be deemed to be amended to require that the Company
indemnify Indemnitee to the fullest extent permitted by the DGCL.

 

(c)                                  The indemnification and advancement of
expenses provided by or granted pursuant to this Agreement shall be binding
upon and be enforceable by the parties hereto and their respective successors
and assigns (including any direct or indirect successor by purchase, merger,
consolidation or otherwise to all or substantially all of the business or assets
of the Company), shall continue as to an Indemnitee who has ceased to be a
director, officer, employee or agent of the Company or of any other Enterprise
at the Company’s request, and shall inure to the benefit of Indemnitee and his
spouse, assigns, heirs, devisees, executors and administrators and other legal
representatives.

 

(d)                                 The Company shall require and cause any
successor (whether direct or indirect by purchase, merger, consolidation or
otherwise) to all, substantially all or a substantial part, of the business
and/or assets of the Company, by written agreement in form and substance
satisfactory to Indemnitee, expressly to assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform if no such succession had taken place.

 

(e)                                  The Company and Indemnitee agree herein that
a monetary remedy for breach of this Agreement, at some later date, may be
inadequate, impracticable and difficult of proof, and further agree that such
breach may cause Indemnitee irreparable harm. Accordingly, the parties
hereto agree that Indemnitee may enforce this Agreement by seeking
injunctive relief and/or specific performance hereof, without any necessity of
showing actual damage or irreparable harm and that by seeking injunctive relief
and/or specific performance, Indemnitee shall not be precluded from seeking or
obtaining any other relief to which he may be entitled. The Company and
Indemnitee further agree that Indemnitee shall be entitled to such specific
performance and injunctive relief, including temporary restraining orders,
preliminary injunctions and permanent injunctions, without the necessity of
posting bonds or other undertaking in connection therewith. The Company
acknowledges that in the absence of a waiver, a bond or undertaking may be
required of Indemnitee by the court, and the Company hereby waives any such
requirement of such a bond or undertaking.

 

12

 

21.                                 Modification and Waiver. No supplement, modification or amendment of
this Agreement shall be binding unless executed in writing by the parties
hereto. No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provisions of this Agreement nor shall
any waiver constitute a continuing waiver.

 

22.                                 Notices. All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed to have been duly given (i) if
delivered by hand and receipted for by the party to whom said notice or other
communication shall have been directed, or (ii) mailed by certified or
registered mail with postage prepaid, on the third (3rd) business day after the
date on which it is so mailed:

 

(a)                                  If to Indemnitee, at the address indicated on
the signature page of this Agreement, or such other address as Indemnitee
shall provide in writing to the Company.

 

(b)                                 If to the Company, to:

 

Farmer Bros. Co.

20333 South Normandie Avenue 

Torrance, CA 90502

Attention: Corporate
Secretary

 

or to any other address as may have been
furnished to Indemnitee in writing by the Company.

 

23.                                 Applicable Law and Consent to Jurisdiction.    This Agreement and the legal relations among
the parties shall be governed by, and construed and enforced in accordance
with, the laws of the State of Delaware, without regard to its conflict of laws
rules. Except with respect to any arbitration commenced by Indemnitee pursuant
to Section 14(a) of this Agreement, the Company and Indemnitee hereby
irrevocably and unconditionally: (a) agree that any action or proceeding
arising out of or in connection with this Agreement shall be brought only in
the Delaware Court and not in any other state or federal court in the United
States of America or any court in any other country; (b) consent to submit
to the exclusive jurisdiction of the Delaware Court for purposes of any action
or proceeding arising out of or in connection with this Agreement; (c) appoint
irrevocably, to the extent such party is not a resident of the State of Delaware,
RL&F Service Corp., One Rodney Square, 10th Floor, 10th and King Streets, P.O. Box
551, Wilmington, Delaware 19899 as its agent in the State of Delaware as such
party’s agent for acceptance of legal process in connection with any such
action or proceeding against such party with the same legal force and validity
as if served upon such party personally within the State of Delaware; (d) waive
any objection to the laying of venue of any such action or proceeding in the
Delaware Court; and (e) waive, and agree not to plead or to make, any
claim that any such action or proceeding brought in the Delaware Court has been
brought in an improper or inconvenient forum, or is subject (in whole or in
part) to a jury trial.

 

24.                                 Counterparts.                       This Agreement may be executed in one or
more counterparts, each of which shall for all purposes be deemed to be an
original but all of which together shall constitute one and the same Agreement.
Only one such counterpart signed by the party against whom enforceability
is sought needs to be produced to evidence the existence of this Agreement.

 

25.                                 Miscellaneous. Use of the masculine pronoun shall be
deemed to include usage of the feminine pronoun where appropriate. The headings
of the paragraphs of this Agreement are inserted for convenience only and shall
not be deemed to constitute part of this Agreement or to affect the
construction thereof.

 

[SIGNATURE PAGE FOLLOWS]

 

13

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the
day and year first above written.

 

FARMER
BROS. CO.

 

 

	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
	
   

  
	
   

  
	
  INDEMNITEE

  
	
   

  
	
   

  
	
   

  	
   

  
	
  Name:

  
	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
				

 

14

 

SCHEDULE OF INDEMNITEES

 

John
M. Anglin

Guenter
W. Berger

Kenneth
R. Carson

Lewis
A. Coffman

Michael
J. King

Thomas
A. Maloof

John
H. Merrell

John
Samore, Jr.

John
E. Simmons

Carol
Farmer Waite

 

15Exhibit 4.01

 

SUPPLEMENTAL TRUST INDENTURE

 

FROM

 

NORTHERN STATES POWER
COMPANY

(A MINNESOTA CORPORATION)

 

TO

 

BNY MIDWEST TRUST COMPANY

 

 

DATED MAY 1, 2006

 

 

SUPPLEMENTAL TO TRUST INDENTURE

DATED FEBRUARY 1, 1937

 

AND

 

SUPPLEMENTAL AND RESTATED 

TRUST INDENTURE

 

DATED MAY 1, 1988

 

 

Table of Contents

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  PARTIES

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  RECITALS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
  SPECIFIC SUBJECTION OF ADDITIONAL PROPERTY TO THE LIEN OF THE
  INDENTURE

  	
  9

  
	
   

  	
   

  	
   

  
	
  Section 1.01

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  FORM AND EXECUTION OF BONDS OF SERIES DUE JUNE 1, 2036

  	
  11

  
	
   

  	
   

  	
   

  
	
  Section 2.01

  	
  11

  
	
   

  	
   

  	
   

  
	
  Section 2.02

  	
  12

  
	
   

  	
   

  	
   

  
	
  Section 2.03

  	
  14

  
	
   

  	
   

  	
   

  
	
  Section 2.04

  	
  14

  
	
   

  	
   

  	
   

  
	
  Section 2.05

  	
  14

  
	
   

  	
   

  	
   

  
	
  Section 2.06

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  APPOINTMENT OF AUTHENTICATING AGENT

  	
  17

  
	
   

  	
   

  	
   

  
	
  Section 3.01

  	
  17

  
	
   

  	
   

  	
   

  
	
  Section 3.02

  	
  17

  
	
   

  	
   

  	
   

  
	
  Section 3.03

  	
  18

  
	
   

  	
   

  	
   

  
	
  Section 3.04

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  FINANCING STATEMENT TO COMPLY WITH THE UNIFORM COMMERCIAL CODE

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 4.01

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 4.02

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 4.03

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 4.04

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 4.05

  	
  20

  
	
   

  	
   

  	
   

  
	
  Section 4.06

  	
  23

  

 

i

 

	
  ARTICLE V

  	
  MISCELLANEOUS

  	
  23

  
	
   

  	
   

  	
   

  
	
  Section 5.01

  	
  24

  
	
   

  	
   

  	
   

  
	
  Section 5.02

  	
  24

  
	
   

  	
   

  	
   

  
	
  Section 5.03

  	
  24

  
	
   

  	
   

  	
   

  
	
  Section 5.04

  	
  24

  
	
   

  	
   

  	
   

  
	
  Section 5.05

  	
  24

  
	
   

  	
   

  	
   

  
	
  Section 5.06

  	
  24

  
	
   

  	
   

  	
   

  
	
  SCHEDULE A – PROPERTIES

  	
   

  

 

ii

 

Supplemental Trust Indenture, made effective as of the 1st day of May, 2006, by and
between NORTHERN STATES POWER COMPANY (formerly Northern Power Corporation), a
corporation duly organized and existing under and by virtue of the laws of the
State of Minnesota, having its principal office in the City of Minneapolis,
Minnesota (the “Company”), party of the first part, and BNY MIDWEST TRUST
COMPANY, a corporation duly organized and existing under and by virtue of the
laws of the State of Illinois, having its principal office in the City of
Chicago, Illinois (as successor Trustee to Harris Trust and Savings Bank), as
trustee (the “Trustee”), party of the second part;

 

WITNESSETH:

 

WHEREAS, a predecessor in interest to the
Company, Xcel Energy Inc. (formerly Northern States Power Company), a
corporation duly organized and existing under and by virtue of the laws of the
State of Minnesota (the “Predecessor Company”) has heretofore executed and
delivered to the Trustee its Trust Indenture (the “1937 Indenture”), made as of
February 1, 1937, whereby the Predecessor Company granted, bargained,
sold, warranted, released, conveyed, assigned, transferred, mortgaged, pledged,
set over and confirmed to the Trustee and to its respective successors in
trust, all property, real, personal and mixed then owned or thereafter acquired
or to be acquired by the Predecessor Company (except as therein excepted from
the lien thereof) and subject to the rights reserved by the Predecessor Company
in and by the provisions of the 1937 Indenture, to be held by said Trustee in
trust in accordance with the provisions of the 1937 Indenture for the equal pro
rata benefit and security of all and each of the bonds issued and to be issued
thereunder in accordance with the provisions thereof; and

 

WHEREAS, the Predecessor Company heretofore
has executed and delivered to the Trustee a Supplemental Trust Indenture, made
as of June 1, 1942, whereby the Predecessor Company conveyed, assigned,
transferred, mortgaged, pledged, set over and confirmed to the Trustee, and its
respective successors in said trust, additional property acquired by it
subsequent to the date of the 1937 Indenture; and

 

WHEREAS, the Predecessor Company heretofore
has executed and delivered to the Trustee the following additional Supplemental
Trust Indentures which, in addition to conveying, assigning, transferring,
mortgaging, pledging, setting over and confirming to the Trustee, and its
respective successors in said trust, additional property acquired by it
subsequent to the preparation of the next preceding Supplemental Trust
Indenture and adding to the covenants, conditions and agreements of the 1937
Indenture certain additional covenants, conditions and agreements to be
observed by the Predecessor Company, created the following series of First
Mortgage Bonds:

 

 

	
  Date of Supplemental

  Trust Indenture

  	
   

  	
  Designation of Series

  
	
  February 1,
  1944

  	
   

  	
  Series due
  February 1, 1974 (retired)

  
	
  October 1,
  1945

  	
   

  	
  Series due
  October 1, 1975 (retired)

  
	
  July 1,
  1948

  	
   

  	
  Series due
  July 1, 1978 (retired)

  
	
  August 1,
  1949

  	
   

  	
  Series due
  August 1, 1979 (retired)

  
	
  June 1,
  1952

  	
   

  	
  Series due
  June 1, 1982 (retired)

  
	
  October 1,
  1954

  	
   

  	
  Series due
  October 1, 1984 (retired)

  
	
  September 1,
  1956

  	
   

  	
  Series due
  1986 (retired)

  
	
  August 1,
  1957

  	
   

  	
  Series due
  August 1, 1987 (redeemed)

  
	
  July 1,
  1958

  	
   

  	
  Series due
  July 1, 1988 (retired)

  
	
  December 1,
  1960

  	
   

  	
  Series due
  December 1, 1990 (retired)

  
	
  August 1,
  1961

  	
   

  	
  Series due
  August 1, 1991 (retired)

  
	
  June 1,
  1962

  	
   

  	
  Series due
  June 1, 1992 (retired)

  
	
  September 1,
  1963

  	
   

  	
  Series due
  September 1, 1993 (retired)

  
	
  August 1,
  1966

  	
   

  	
  Series due
  August 1, 1996 (redeemed)

  
	
  June 1,
  1967

  	
   

  	
  Series due
  June 1, 1995 (redeemed)

  
	
  October 1,
  1967

  	
   

  	
  Series due
  October 1, 1997 (redeemed)

  
	
  May 1,
  1968

  	
   

  	
  Series due
  May 1, 1998 (redeemed)

  
	
  October 1,
  1969

  	
   

  	
  Series due
  October 1, 1999 (redeemed)

  
	
  February 1,
  1971

  	
   

  	
  Series due
  March 1, 2001 (redeemed)

  
	
  May 1,
  1971

  	
   

  	
  Series due
  June 1, 2001 (redeemed)

  
	
  February 1,
  1972

  	
   

  	
  Series due
  March 1, 2002 (redeemed)

  
	
  January 1,
  1973

  	
   

  	
  Series due
  February 1, 2003 (redeemed)

  
	
  January 1,
  1974

  	
   

  	
  Series due
  January 1, 2004 (redeemed)

  
	
  September 1,
  1974

  	
   

  	
  Pollution
  Control Series A (redeemed)

  
	
  April 1,
  1975

  	
   

  	
  Pollution
  Control Series B (redeemed)

  
	
  May 1,
  1975

  	
   

  	
  Series due
  May 1, 2005 (redeemed)

  
	
  March 1,
  1976

  	
   

  	
  Pollution
  Control Series C (retired)

  
	
  June 1,
  1981

  	
   

  	
  Pollution
  Control Series D, E and F (redeemed)

  
	
  December 1,
  1981

  	
   

  	
  Series due
  December 1, 2011 (redeemed)

  
	
  May 1,
  1983

  	
   

  	
  Series due
  May 1, 2013 (redeemed)

  
	
  December 1,
  1983

  	
   

  	
  Pollution
  Control Series G (redeemed)

  
	
  September 1,
  1984

  	
   

  	
  Pollution
  Control Series H (redeemed)

  
	
  December 1,
  1984

  	
   

  	
  Resource
  Recovery Series I (redeemed)

  
	
  May 1,
  1985

  	
   

  	
  Series due
  June 1, 2015 (redeemed)

  
	
  September 1,
  1985

  	
   

  	
  Pollution
  Control Series J, K and L (redeemed)

  
	
  July 1,
  1989

  	
   

  	
  Series due
  July 1, 2019 (redeemed)

  
	
  June 1,
  1990

  	
   

  	
  Series due
  June 1, 2020 (redeemed)

  
	
  October 1,
  1992

  	
   

  	
  Series due
  October 1, 1997 (retired)

  
	
  April 1,
  1993

  	
   

  	
  Series due
  April 1, 2003 (retired)

  
	
  December 1,
  1993

  	
   

  	
  Series due
  December 1, 2000 (retired), and December 1, 2005 (retired)

  

 

2

 

	
  Date of Supplemental

  Trust Indenture

  	
   

  	
  Designation of Series

  
	
  February 1,
  1994

  	
   

  	
  Series due
  February 1, 1999 (retired)

  
	
  October 1,
  1994

  	
   

  	
  Series due
  October 1, 2001 (retired)

  
	
  June 1,
  1995

  	
   

  	
  Series due
  July 1, 2025

  
	
  April 1,
  1997

  	
   

  	
  Pollution
  Control Series M (redeemed), N, O and P

  
	
  March 1,
  1998

  	
   

  	
  Series due
  March 1, 2003 (retired), and  March 1, 2028

  
	
  May 1,
  1999

  	
   

  	
  Resource
  Recovery Series Q

  
	
  June 1,
  2000

  	
   

  	
  Resource
  Recovery Series R; and

  

 

WHEREAS, on August 18,
2000, New Centuries Energies, Inc. was merged with and into the
Predecessor Company and the Predecessor Company changed its corporate name from
Northern States Power Company to Xcel Energy Inc.; and

 

WHEREAS, pursuant to an
Assignment and Assumption Agreement dated as of August 18, 2000 between
the Predecessor Company and the Company, substantially all the assets of the
Predecessor Company (other than the stock of the Predecessor Company’s
subsidiaries) were conveyed to, and substantially all the liabilities of the Predecessor
Company, including liabilities created under the Indenture (as hereinafter
defined), were assumed by, the Company (the “Assignment”); and

 

WHEREAS, pursuant to the
Supplemental Trust Indenture dated as of August 1, 2000 among the
Predecessor Company, the Company and Harris Trust and Savings Bank, as trustee,
the requirements and conditions precedent set forth in the Original Indenture
and the Restated Indenture (each as hereinafter defined) with respect to the
Assignment were satisfied; and

 

WHEREAS, the
Company heretofore has executed and delivered to the Trustee the following
additional Supplemental Trust Indentures which, in addition to conveying,
assigning, transferring, mortgaging, pledging, setting over and confirming to
the Trustee, and its respective successors in said trust, additional property
acquired by it (or, as the case may be, the Predecessor Company)
subsequent to the preparation of the next preceding Supplemental Trust
Indenture and adding to the covenants, conditions and agreements of the 1937
Indenture certain additional covenants, conditions and agreements to be
observed by the Company, created the following series of First Mortgage
Bonds 

 

	
  Date of Supplemental

  Trust Indenture

  	
   

  	
  Designation of Series

  
	
  June 1, 2002

  	
   

  	
  Series due August 15, 2003
  (retired)

  
	
  July 1,
  2002

  	
   

  	
  Pollution Control Series S

  
	
  August 1,
  2002

  	
   

  	
  Series A and Series B due August 28,
  2012

  
	
  May 1,
  2003

  	
   

  	
  Series due 2004, extendible through
  2006 (retired)

  
	
  August 1,
  2003

  	
   

  	
  Series due August 1, 2006 and Series due
  August 1, 2010

  
	
  July 1,
  2005

  	
   

  	
  Series due July 15, 2035; and

  

 

3

 

WHEREAS, the 1937 Indenture and all of the
foregoing Supplemental Trust Indentures are referred to herein collectively as
the “Original Indenture”; and

 

WHEREAS, the Predecessor Company heretofore
has executed and delivered to the Trustee a Supplemental and Restated Trust
Indenture, dated May 1, 1988 (the “Restated Indenture”), which, in
addition to conveying, assigning, transferring, mortgaging, pledging, setting
over and confirming to the Trustee, and its respective successors in said trust
additional property acquired by it subsequent to the preparation of the next
preceding Supplemental Trust Indenture, amended and restated the Original
Indenture (except for those Supplemental Trust Indentures executed after May 1,
1988); and

 

WHEREAS, the Restated Indenture became
effective and operative on July 20, 2005; and

 

WHEREAS, the Original Indenture, the Restated
Indenture and all trust indentures supplemental thereto are referred to herein
collectively as the “Indenture”; and

 

WHEREAS, pursuant to the
Agreement of Resignation, Appointment and Acceptance dated as of May 1,
2002 among the Company, BNY Midwest Trust Company, as successor trustee, and
Harris Trust and Savings Bank, the Trustee accepted the rights, powers, duties
and obligations of the trustee under the Indenture effective as of May 9,
2002; and

 

WHEREAS, the Indenture provides that bonds may be
issued thereunder in one or more series, each series to have such
distinctive designation as the Board of Directors of the Company may select
for such series; and

 

WHEREAS, the Company is desirous of providing
for the creation of a new series of First Mortgage Bonds, said new series of
bonds to be designated “First Mortgage Bonds, Series due June 1,
2036,” the bonds of such series to be
issued as registered bonds without coupons in denominations of a multiple of
$1,000, and the bonds of such series to be substantially in the form and
of the tenor following with the redemption prices inserted therein in
conformity with the provisions of Section 2.02 hereof, to-wit:

 

(Form of
Bonds of Series due June 1, 2036)

NORTHERN STATES POWER COMPANY

(Incorporated under the laws of the State of Minnesota)

First Mortgage Bond

Series due June 1, 2036

 

	
  No.

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  

 

[Unless this certificate is presented by an
authorized representative of The Depository Trust Company, a New York
corporation, 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 such other name as is requested by an authorized representative of The
Depository Trust Company (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of The
Depository Trust Company), ANY TRANSFER, PLEDGE OR OTHER

 

4

 

USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co.,
has an interest herein.]*

 

NORTHERN STATES POWER COMPANY, a corporation
organized and existing under the laws of the State of Minnesota (the “Company”),
for value received, hereby promises to pay to [                    ]
or its registered assigns, at the office of the Trustee, in Chicago, Illinois,
or, at the option of the registered owner, at the agency of the Company in the
Borough of Manhattan, City and State of New York, an amount equal to [                          ]
Dollars in lawful money of the United States of America, on the 1st day of June,
2036, and to pay interest hereon from the date hereof at the rate of 6.25
percent per annum, in like money, until the Company’s obligation with respect
to the payment of such principal sum shall be discharged; said interest being
payable at the option of the person entitled to such interest either at the
office of the Trustee, in Chicago, Illinois, or at the agency of the Company in
the Borough of Manhattan, City and State of New York, on the 1st day of June and
on the 1st day of December in each year, commencing December 1, 2006,
provided that as long as there is no existing default in the payment of
interest and except for the payment of defaulted interest, the interest payable
on any June 1 or December 1 will be paid to the person in whose name
this bond was registered at the close of business on the record date (the May 15
prior to such June 1 or the November 15 prior to such December 1
(whether or not a business day)).

 

[EXCEPT UNDER THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE, THESE GLOBAL BONDS MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE REGISTERED DEPOSITORY OR BY A NOMINEE OF THE
REGISTERED DEPOSITORY TO THE REGISTERED DEPOSITORY, ANOTHER NOMINEE OF THE
REGISTERED DEPOSITORY, A SUCCESSOR OF THE REGISTERED DEPOSITORY OR A NOMINEE OF
SUCH SUCCESSOR.]*

 

This bond is one of a duly authorized issue
of bonds of the Company, of the series and designation indicated on the
face hereof, which issue of bonds consists, or may consist, of several series of
varying denominations, dates and tenor, all issued and to be issued under and
equally secured (except insofar as a sinking fund, or similar fund, established
in accordance with the provisions of the Indenture may afford additional
security for the bonds of any specific series) by a Trust Indenture dated February 1,
1937 (the “1937 Indenture”), as supplemented by 55 supplemental trust
indentures (collectively, the “Supplemental Indentures”), a Supplemental and
Restated Trust Indenture dated May 1, 1988 (the “Restated Indenture”) and
a new supplemental trust indenture for the bonds of this series (the “Supplemental
Trust Indenture”), executed by the Company to BNY MIDWEST TRUST COMPANY (as
successor trustee to Harris Trust and Savings Bank), as trustee (the “Trustee”).
The 1937 Indenture, as supplemented by the Supplemental Indentures, the
Restated Indenture and the Supplemental Trust Indenture, is referred to herein
as the “Indenture.”  The Restated
Indenture amends and restates the 1937 Indenture and certain of the Supplemental
Indentures and became effective and operative on July 20, 2005. Reference
hereby is made to the Indenture for a description of the property mortgaged and
pledged, the nature and extent of the security, the rights of the holders of
the bonds as to such security and the terms and conditions upon which the bonds
may be issued

 

* This legend to be included if the bonds are
issued as a global bond in book-entry form.

 

5

 

under the Indenture and are secured. The
principal hereof may be declared or may become due on the conditions,
in the manner and at the time set forth in the Indenture upon the happening of
a default as provided in the Indenture.

 

With the consent of the Company and to the
extent permitted by and as provided in the Indenture, the rights and
obligations of the Company and of the holders of the bonds and the terms and
provisions of the Indenture and of any instruments supplemental thereto may be
modified or altered by affirmative vote of the holders of at least 66 2/3% in
principal amount of the bonds then outstanding under the Indenture and any
instruments supplemental thereto (excluding bonds challenged and disqualified
from voting by reason of the Company’s interest therein as provided in the
Indenture); provided that without the consent of all holders of all bonds
affected no such modification or alteration shall permit the extension of the
maturity of the principal of any bond or the reduction in the rate of interest
thereon or any other modification in the terms of payment of such principal or
interest.

 

The Company and the Trustee may deem and
treat the person in whose name this bond is registered as the absolute owner
hereof for the purpose of receiving payment and for all other purposes and
shall not be affected by any notice to the contrary.

 

The bonds of
this series shall be redeemable at the option of the Company, as a
whole or in part, on any date upon not less than 30 days’ previous notice to be
given in the manner and with the effect provided in Section 10.02 of the
Restated Indenture at a redemption price equal to the greater of (a) the
principal amount being redeemed or (b) the sum of the present values of
the remaining scheduled payments of principal and interest on the bonds of this
series that are being redeemed, discounted to the redemption date on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Treasury Yield plus 15 basis points, plus in each case accrued and
unpaid interest to the redemption date.

 

“Treasury
Yield” means, with respect to any redemption date, (i) the yield, under
the heading which represents the average for the immediately preceding week,
appearing in the most recently published statistical release designated “H.15(519)”
or any successor publication which is published weekly by the Board of
Governors of the Federal Reserve System and which establishes yields on
actively traded U.S. Treasury securities adjusted to constant maturity under
the caption “Treasury Constant Maturities,” for the maturity corresponding to
the Comparable Treasury Issue (if no maturity is within three months before or
after the remaining term, yields for the two published maturities most closely
corresponding to the Comparable Treasury Issue will be determined and the
Treasury Yield will be interpolated or extrapolated from such yields on a
straight line basis, rounding to the nearest month); or (ii) if such
release (or any successor release) is not published during the week preceding
the calculation date or does not contain such yields, the rate per annum equal
to the semi-annual equivalent yield to maturity of the Comparable Treasury
Issue, calculated using a price for the Comparable Treasury Issue (expressed as
a percentage of its principal amount) equal to the Comparable Treasury Price
for such redemption date. The Treasury Yield will be calculated on the third
business day preceding the date fixed for redemption.

 

“Comparable
Treasury Issue” means the U.S. Treasury security selected by an Independent
Investment Banker as having a maturity comparable to the remaining term of the

 

6

 

bonds of this series 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 the bonds of this series.

 

“Comparable
Treasury Price” means (i) the average of the Reference Treasury Dealer
Quotations for such redemption date, after excluding the highest and lowest of
such Reference Treasury Dealer Quotations for such redemption date, or (ii) if
the Trustee obtains fewer than four such Reference Treasury Dealer Quotations,
the average of all such Reference Treasury Dealer Quotations.

 

“Independent
Investment Banker” means UBS Securities LLC, BNY Capital Markets, Inc. or Credit Suisse Securities (USA) LLC
or their respective successors or, if such firms or their successors are
unwilling or unable to select the Comparable Treasury Issue, an independent
investment banking institution of national standing appointed by the Trustee
after consultation with the Company.

 

“Reference
Treasury Dealer” means (i) UBS Securities LLC, BNY Capital Markets, Inc. or Credit Suisse Securities (USA) LLC
and any other primary U.S. Government securities dealer in New York City (a “Primary
Treasury Dealer”) designated by, and not affiliated with, UBS Securities LLC, BNY Capital Markets, Inc. or Credit
Suisse Securities (USA) LLC and their respective successors, provided,
however, that if UBS Securities LLC, BNY
Capital Markets, Inc. or Credit Suisse Securities (USA) LLC or any
of their designees ceases to be a Primary Treasury Dealer, the Company shall
appoint another Primary Treasury Dealer as a substitute, and (ii) any
other Primary Treasury Dealers selected by the Company after consultation with
the Independent Investment Banker.

 

“Reference
Treasury Dealer Quotations” means, for each Reference Treasury Dealer and any
redemption date, the average, as determined by the Independent Investment
Banker, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Independent Investment Banker by such Reference Treasury Dealer
at 5:00 p.m. on the third business day preceding such redemption date.

 

Bonds of this series are
not subject to a sinking fund.

 

This bond is transferable as prescribed in
the Indenture by the registered owner hereof in person, or by his duly
authorized attorney, at the office of the Trustee in Chicago, Illinois, or at
the option of the owner at the agency of the Company in the Borough of
Manhattan, City and State of New York, or elsewhere if authorized by the
Company, upon surrender and cancellation of this bond, and thereupon a new bond
or bonds of the same series and of a like aggregate principal amount will
be issued to the transferee in exchange therefor as provided in the Indenture,
upon payment of taxes or other governmental charges, if any, that may be imposed
in relation thereto.

 

Bonds of this series are interchangeable
as to denominations in the manner and upon the conditions prescribed in the
Indenture.

 

7

 

No charge shall be made by the Company for
any exchange or transfer of bonds of this series, other than for taxes or other
governmental charges, if any, that may be imposed in relation thereto.

 

The Company
shall not be required to issue, transfer or exchange any bond of this series during
a period of 10 days immediately preceding any selection of bonds of this series to
be redeemed. The Company shall not be required to transfer or exchange any bond
of this series called or being called for redemption in its entirety or to
transfer or exchange the called portion of a bond of this series which has
been called for partial redemption.

 

No recourse shall be had for the payment of
the principal of or the interest on this bond, or any part thereof, or of
any claim based hereon or in respect hereof or of said Indenture, against any
incorporator, or any past, present or future shareholder, officer or director
of the Company or of any predecessor or successor corporation, either directly
or through the Company, or through any such predecessor or successor corporation,
or through any receiver or a trustee in bankruptcy, whether by virtue of any
constitution, statute or rule of law or by the enforcement of any
assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for the issue hereof, expressly
waived and released, as more fully provided in the Indenture.

 

This bond shall not be valid or become
obligatory for any purpose unless and until the certificate of authentication
hereon shall have been signed by or on behalf of BNY Midwest Trust Company (as
successor trustee to Harris Trust and Savings Bank), as Trustee under the
Indenture, or its successor thereunder.

 

IN WITNESS WHEREOF, NORTHERN STATES POWER
COMPANY has caused this bond to be executed in its name by its President or a
Vice President and its corporate seal, or a facsimile thereof, to be hereto
affixed and attested by its Secretary or an Assistant Secretary.

 

	
  Dated:

  	
   

  	
   

  	
  NORTHERN STATES POWER COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Vice President

  
									

 

(Form of
Trustee’s Certificate)

 

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

 

	
   

  	
  BNY MIDWEST TRUST COMPANY, as 

  
	
   

  	
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  

 

and

 

8

 

WHEREAS, the Company is desirous of
conveying, assigning, transferring, mortgaging, pledging, setting over and
confirming to the Trustee and to its respective successors in trust, additional
property acquired by it subsequent to the date of the preparation of the
Supplemental Trust Indenture dated as of July 1, 2005; and

 

WHEREAS, the Indenture provides in substance
that the Company and the Trustee may enter into indentures supplemental
thereto for the purposes, among others, of creating and setting forth the
particulars of any new series of bonds and of providing the terms and
conditions of the issue of the bonds of any series not expressly provided
for in the Indenture and of conveying, assigning, transferring, mortgaging,
pledging, setting over and confirming to the Trustee additional property of the
Company, and for any other purpose not inconsistent with the terms of the
Indenture; and

 

WHEREAS, the execution and delivery of this
Supplemental Trust Indenture have been duly authorized by a resolution adopted
by the Board of Directors of the Company; and

 

WHEREAS, the Trustee has duly determined to
execute this Supplemental Trust Indenture and to be bound, insofar as it may lawfully
do so, by the provisions hereof;

 

NOW, THEREFORE, Northern States Power
Company, in consideration of the premises and of one dollar duly paid to it by
the Trustee at or before the ensealing and delivery of these presents, the
receipt of which is hereby acknowledged, and other good and valuable
considerations, does hereby covenant and agree to and with BNY Midwest Trust
Company (as successor trustee to Harris Trust and Savings Bank), as Trustee,
and its successors in the trust under the Indenture for the benefit of those
who hold or shall hold the bonds, or any of them, issued or to be issued
thereunder, as follows:

 

ARTICLE I

SPECIFIC SUBJECTION OF ADDITIONAL PROPERTY

TO THE LIEN OF THE INDENTURE

 

SECTION 1.01. The Company, in order to
better secure the payment, of both the principal and interest, of all bonds of the
Company at any time outstanding under the Indenture according to their tenor
and effect and the performance of and compliance with the covenants and
conditions contained in the Indenture, has granted, bargained, sold, warranted,
released, conveyed, assigned, transferred, mortgaged, pledged, set over and
confirmed, and by these presents does grant, bargain, sell, warrant, release,
convey, assign, transfer, mortgage, pledge, set over and confirm, to the
Trustee and to its respective successors in said trust forever, subject to the
rights reserved by the Company in and by the provisions of the Indenture, all
of the property described and mentioned or enumerated in a schedule annexed
hereto and marked Schedule A, reference to said schedule being made
hereby with the same force and effect as if the same were incorporated herein
at length; together with all and singular the tenements, hereditaments and
appurtenances belonging and in any way appertaining to the aforesaid property
or any part thereof with the reversion and reversions, remainder and
remainders, tolls, rents and revenues, issues, income, products and profits
thereof;

 

9

 

Also, in order to subject the personal
property and chattels of the Company to the lien of the Indenture and to conform with
the provisions of the Uniform Commercial Code, all fossil, nuclear, hydro
and other electric generating plants, including buildings and other structures,
turbines, generators, exciters, boilers, reactors, nuclear fuel, other boiler
plant equipment, condensing equipment and all other generating equipment;
substations; electric transmission and distribution systems, including
structures, poles, towers, fixtures, conduits, insulators, wires, cables,
transformers, services and meters; steam heating mains and equipment; gas
transmission and distribution systems, including structures, storage
facilities, mains, compressor stations, purifier stations, pressure holders,
governors, services and meters; telephone plant and related distribution
systems; trucks and trailers; office, shop and other buildings and structures,
furniture and equipment; apparatus and equipment of all other kinds and
descriptions; materials and supplies; all municipal and other franchises,
leaseholds, licenses, permits, privileges, patents and patent rights; all
shares of stock, bonds, evidences of indebtedness, contracts, claims, accounts
receivable, choses in action and other intangibles, all books of account and
other corporate records;

 

Excluding, however, all merchandise and
appliances heretofore or hereafter acquired for the purpose of sale to
customers and others;

 

All the estate, right, title, interest and
claim, whatsoever, at law as well as in equity, which the Company now has or
hereafter may acquire in and to the aforesaid property and every part and
parcel thereof subject, however, to the right of the Company, upon the
occurrence and continuation of a Completed Default as defined in the Indenture,
to retain in its possession all shares of stock, notes, evidences of
indebtedness, other securities and cash not expressly required by the
provisions hereof to be deposited with the Trustee, to retain in its possession
all contracts, bills and accounts receivable, motor cars, any stock of goods, wares
and merchandise, equipment or supplies acquired for the purpose of consumption
in the operation, construction or repair of any of the properties of the
Company, and to sell, exchange, pledge, hypothecate or otherwise dispose of any
or all of such property so retained in its possession, free from the lien of
the Indenture, without permission or hindrance on the part of the Trustee,
or any of the bondholders. No person in any dealings with the Company in
respect of any such property shall be charged with any notice or knowledge of
any such Completed Default under the Indenture while the Company is in
possession of such property. Nothing contained herein or in the Indenture shall
be deemed or construed to require the deposit with, or delivery to, the Trustee
of any of such property, except such as is specifically required to be
deposited with the Trustee by some express provision of the Indenture;

 

To have and to hold all said property, real,
personal and mixed, granted, bargained, sold, warranted, released, conveyed,
assigned, transferred, mortgaged, pledged, set over or confirmed by the Company
as aforesaid, or intended so to be, to the Trustee and its successors and
assigns forever, subject, however, to Permitted Encumbrances and to the further reservations, covenants, conditions,
uses and trusts set forth in the Indenture; in trust nevertheless for the same
purposes and upon the same conditions as are set forth in the Indenture.

 

10

 

ARTICLE II

FORM AND EXECUTION OF BONDS OF SERIES DUE JUNE 1, 2036

 

SECTION 2.01.
There is hereby created, for issuance under the Indenture, a series of
bonds designated Series due June 1, 2036, each of which shall bear the
descriptive title “First Mortgage Bonds, Series due June 1, 2036,”
(such bonds, the “Series 2036 Bonds”) and the form thereof shall
contain suitable provisions with respect to the matters hereafter specified in
this Section. The Series 2036 Bonds may forthwith be executed by the
Company substantially in the form set forth in the recitals, including the
relevant provisions as indicated therein, and delivered to the Trustee for
authentication and delivery by the Trustee in accordance with the provisions of
the Indenture and this Supplemental Trust Indenture. The aggregate principal
amount of the Series 2036
Bonds outstanding at any time shall not exceed $400,000,000. The Series 2036 Bonds shall mature on June 1,
2036, and shall be issued as registered bonds without coupons in denominations
of $1,000. The Series 2036 Bonds shall bear interest at a rate of 6.25%
per annum on the principal amount thereof payable semi-annually on June 1 and
December 1
of each year, commencing December 1, 2006, and the principal shall be
payable at the office of the Trustee in Chicago, Illinois, or at the option of
the registered owner at the agency of the Company in the Borough of Manhattan,
City and State of New York, in lawful money of the United States of America,
and the interest shall be payable in like money at the option of the person
entitled to such interest either at said office of the Trustee in Chicago,
Illinois, or at the agency of the Company in the Borough of Manhattan, City and
State of New York. Interest on the Series 2036 Bonds shall be calculated
on the basis of a 360-day year consisting of twelve 30-day months. The Series 2036
Bonds shall be dated as of the date of authentication thereof by the Trustee.

 

As long as
there is no existing default in the payment of interest on the Series 2036
Bonds, the person in whose name any Series 2036 Bond is registered at the
close of business on any Record Date with respect to any interest payment date
shall be entitled to receive the interest payable on such interest payment date
notwithstanding any transfer or exchange of any such Series 2036 Bond
subsequent to the Record Date and on or prior to such interest payment date,
except as and to the extent 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 Series 2036 Bond
is registered on the Special Record Date for the payment of such defaulted
interest to be fixed by the Trustee, notice thereof shall be given to the
registered holder of any Series 2036 Bond not less than 10 days prior to
such Special Record Date, or may be paid at any time in any other lawful
manner not inconsistent with the requirements of any securities exchange on
which the Series 2036 Bond may be listed, and upon such notice as may be
required by such exchange.

 

The term “Record Date” as used in this Section 2.01
with respect to any interest payment date (June 1 or December 1)
shall mean the May 15 prior to such June 1 or the November 15
prior to such December 1 (whether or not a business day). The term “business
day” shall mean any day other than a Saturday or Sunday or a day on which the
offices of the Trustee in the City of Chicago, Illinois, are closed pursuant to
authorization of law.

 

11

 

As used in this Section 2.01, the term “default
in the payment of interest” means failure to pay interest on the applicable
interest payment date disregarding any period of grace permitted by the
Indenture.

 

The “Special Record Date” as used in this Section 2.01
shall be fixed in the following manner. The Company shall notify the Trustee in
writing of the amount of defaulted interest proposed to be paid on each Series 2036
Bond and the date of the proposed payment,
and at the same time the Company shall deposit with the Trustee an amount of
money equal to the aggregate amount proposed to be paid in respect of such
defaulted interest or shall make arrangements satisfactory to the Trustee for
such deposit prior to the date of the proposed payment, such money when deposited
to be held in trust for the benefit of the persons entitled to such defaulted
interest as provided in this Section 2.01. Thereupon the Trustee shall fix
a Special Record Date for the payment of such defaulted interest which shall be
not more than 15 nor less than 10 days prior to the date of the proposed
payment and not less than 10 days after the receipt by the Trustee of the
notice of the proposed payment. The Trustee shall promptly notify the Company
of such Special Record Date and, in the name and at the expense of the Company,
shall cause notice of the proposed payment of such defaulted interest and the
Special Record Date therefor to be mailed, first class postage prepaid, to
each holder of the Series 2036 Bonds, at his, her or its address as it
appears in the bond register, not less than 10 days prior to such Special
Record Date. Notice of the proposed payment of such defaulted interest and the
Special Record Date therefor having been mailed as aforesaid, such defaulted
interest shall be paid to the persons in whose names the Series 2036 Bonds
are registered on such Special Record Date and shall not be payable pursuant to
the paragraph immediately following in this Section 2.01.

 

The Company may make payment of any
defaulted interest in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Series 2036 Bonds may be
listed, and upon such notice as may be required by such exchange, if,
after notice is given by the Company to the Trustee of the proposed payment
pursuant to this Section 2.01, such payment shall be deemed practicable by
the Trustee.

 

SECTION 2.02. The Series 2036 Bonds
shall be redeemable at the option of the Company, as a whole or in part, on any
date upon not less than 30 days’ previous notice to be given in the manner and
with the effect provided in Section 10.02 of the Restated Indenture at a
redemption price equal to the greater of (a) the principal amount being
redeemed or (b) the sum of the present values of the remaining scheduled
payments of principal and interest on the Series 2036 Bonds that are being
redeemed, discounted to the redemption date on a semi-annual basis (assuming a
360-day year consisting of twelve 30-day months) at the Treasury Yield plus 15
basis points, plus in each case accrued and unpaid interest to the redemption
date.

 

“Treasury
Yield” means, with respect to any redemption date, (i) the yield, under
the heading which represents the average for the immediately preceding week,
appearing in the most recently published statistical release designated “H.15(519)”
or any successor publication which is published weekly by the Board of
Governors of the Federal Reserve System and which establishes yields on
actively traded U.S. Treasury securities adjusted to constant maturity under
the caption “Treasury Constant Maturities,” for the maturity corresponding to
the Comparable Treasury Issue (if no maturity is within three months before or
after the remaining term, yields for the two published maturities most closely
corresponding to the Comparable Treasury Issue

 

12

 

will be
determined and the Treasury Yield will be interpolated or extrapolated from
such yields on a straight line basis, rounding to the nearest month); or (ii) if
such release (or any successor release) is not published during the week
preceding the calculation date or does not contain such yields, the rate per
annum equal to the semi-annual equivalent yield to maturity of the Comparable
Treasury Issue, calculated using a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for such redemption date. The Treasury Yield will be calculated
on the third business day preceding the date fixed for redemption.

 

“Comparable
Treasury Issue” means the U.S. Treasury security selected by an Independent
Investment Banker as having a maturity comparable to the remaining term of the
bonds of the series 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 the bonds of the series being redeemed.

 

“Comparable
Treasury Price” means (i) the average of the Reference Treasury Dealer
Quotations for such redemption date, after excluding the highest and lowest of
such Reference Treasury Dealer Quotations for such redemption date, or (ii) if
the Trustee obtains fewer than four such Reference Treasury Dealer Quotations,
the average of all such Reference Treasury Dealer Quotations.

 

“Independent
Investment Banker” means UBS Securities LLC, BNY Capital Markets, Inc. or Credit Suisse Securities (USA) LLC or
their respective successors or, if such firms or their successors are unwilling
or unable to select the Comparable Treasury Issue, an independent investment
banking institution of national standing appointed by the Trustee after
consultation with the Company.

 

“Reference
Treasury Dealer” means (i) UBS Securities LLC, BNY Capital Markets, Inc. or Credit Suisse Securities (USA) LLC and
any other primary U.S. Government securities dealer in New York City (a “Primary
Treasury Dealer”) designated by, and not affiliated with, UBS Securities LLC, BNY Capital Markets, Inc. or Credit
Suisse Securities (USA) LLC and their respective successors, provided,
however, that if UBS Securities LLC, BNY
Capital Markets, Inc. or Credit Suisse Securities (USA) LLC or any
of their designees ceases to be a Primary Treasury Dealer, the Company shall
appoint another Primary Treasury Dealer as a substitute and (ii) any other
Primary Treasury Dealers selected by the Company after consultation with the
Independent Investment Banker.

 

“Reference
Treasury Dealer Quotations” means, for each Reference Treasury Dealer and any
redemption date, the average, as determined by the Independent Investment
Banker, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in writing
to the Independent Investment Banker by such Reference Treasury Dealer at 5:00 p.m.
on the third business day preceding such redemption date.

 

The Series 2036 Bonds
are not subject to a sinking fund.

 

13

 

The redemption
prices of the Series 2036 Bonds need not be specified in
any temporary bond of said series if an appropriate reference be made in
said temporary bond to the provision of this Section.

 

SECTION 2.03. The registered owner of
any Series 2036 Bond or Bonds, at his, her or its option, may surrender
the same with other bonds of such series at the office of the Trustee in
Chicago, Illinois, or at the agency of the Company in the Borough of Manhattan,
City and State of New York, or elsewhere if authorized by the Company, for
cancellation, in exchange for other bonds of such series of higher or
lower authorized denominations, but of the same aggregate principal amount,
bearing interest from its date, and upon receipt of any payment required under
the provisions of Section 2.04 hereof. Thereupon the Company shall execute
and deliver to the Trustee and the Trustee shall authenticate and deliver such
other registered bonds to such registered owner at its office or at any other
place specified as aforesaid.

 

Notwithstanding
any other provisions of the Indenture to the contrary, the Company shall not be
required to issue, transfer or exchange any Series 2036 Bond
during a period of ten (10) days next preceding any selection of Series 2036
Bonds to be redeemed. The Company shall not be required to transfer or exchange
any Series 2036 Bond called or being called for redemption in its entirety
or to transfer or exchange the called portion of a Series 2036 Bond which
has been called for partial redemption.

 

SECTION 2.04. No charge shall be made by
the Company for any exchange or transfer of Series 2036 Bonds
other than for
taxes or other governmental charges, if any, that may be imposed in
relation thereto.

 

SECTION 2.05. The Series 2036 Bonds
shall be executed on behalf of the Company by its President or one of its Vice
Presidents, and its corporate seal shall be thereunto affixed, or printed,
lithographed or engraved thereon, in facsimile, and attested by the signature
of its Secretary or one of its Assistant Secretaries. Any such signatures may be
manual or facsimile signatures and may be imprinted or otherwise
reproduced. In case any of the officers who shall have signed any bonds or
attested the seal thereon shall cease to be such officers of the Company before
the bonds so signed and sealed actually shall have been authenticated by the
Trustee or delivered by the Company, such bonds nevertheless may be
issued, authenticated and delivered with the same force and effect as though
the person or persons who signed such bonds and attested the seal thereon had
not ceased to be such officer or officers of the Company. Any bond issuable
hereunder may be signed or attested on behalf of the Company by such
person as at the actual date of the execution of such bond shall be the proper
officer of the Company, although at the date of such bond such person shall not
have been an officer of the Company.

 

SECTION 2.06. (a) Except as
provided in subsections (c) and (g) below, the registered holder of
all of the Series 2036 Bonds shall be The Depository
Trust Company (“DTC”) and such Series 2036 Bonds shall be registered in the
name of Cede & Co., as nominee for DTC. Payment of principal of,
premium, if any, and interest on any Series 2036 Bonds registered in the name of
Cede & Co. shall be made by transfer of New York Federal or equivalent
immediately available funds with respect to the Series 2036 Bonds to the account of
Cede & Co. on each such payment date for the Series 2036 Bonds at the address
indicated for Cede & Co. in the bond register kept by the Trustee.

 

14

 

(b)                                 The Series 2036 Bonds
shall be initially issued in the form of one or more separate single
authenticated fully registered certificates in the aggregate principal amount
of all Series 2036
Bonds. Upon initial issuance, the ownership of such Series 2036 Bonds
shall be registered in the bond register kept by the Trustee in the name of
Cede & Co., as nominee of DTC. The Trustee and the Company may treat
DTC (or its nominee) as the sole and exclusive registered holder of the Series 2036 Bonds
registered in its name for the purposes of payment of the principal of,
premium, if any, and interest on the Series 2036 Bonds and of giving any notice
permitted or required to be given to holders under the Indenture, except as
provided in Section 2.06(g) below; and neither the Trustee nor the
Company shall be affected by any notice to the contrary. Neither the Trustee
nor the Company shall have any responsibility or obligation to any of DTC’s
participants (each a “Participant”), any person claiming a beneficial ownership
in the Series 2036
Bonds under or through DTC or any Participant (each a “Beneficial Owner”)
or any other person which is not shown on the bond register maintained by the
Trustee as being a registered holder, with respect to (1) the accuracy of
any records maintained by DTC or any Participant; (2) the payment by DTC
or any Participant of any amount in respect of the principal of, premium, if
any, or interest on the Series 2036 Bonds; (3) the delivery by DTC or any
Participant of any notice to any Beneficial Owner which is permitted or
required to be given to registered holders under the Indenture of the Series 2036 Bonds;
(4) the selection of the Beneficial Owners to receive payment in the event
of any partial redemption of the Series 2036 Bonds; or (5) any consent
given or other action taken by DTC as bondholder. The Trustee shall pay all
principal of, premium, if any, and interest on the Series 2036 Bonds registered in the
name of Cede & Co. only to or “upon the order of” (as that term is
used in the Uniform Commercial Code as adopted in Minnesota and New York)
DTC, and all such payments shall be valid and effective to fully satisfy and
discharge the Company’s obligations with respect to the principal of, premium,
if any, and interest on such Series 2036 Bonds to the extent of the sum
or sums so paid. Except as otherwise provided in Sections 2.06(c) and (g) below,
no person other than DTC shall receive authenticated bond certificates
evidencing the obligation of the Company to make payments of principal of and
interest on the Series 2036
Bonds. Upon delivery by DTC to the Trustee of written notice to the
effect that DTC has determined to substitute a new nominee in place of Cede &
Co., and subject to the provisions of the Indenture with respect to transfers
of bonds, the word “Cede & Co.” in this Supplemental Trust Indenture
shall refer to such new nominee of DTC.

 

(c)                                  If the Company in its
discretion determines that it is in the best interest of the Beneficial Owners
that they be able to obtain bond certificates for the Series 2036 Bonds or there shall have
occurred and be continuing a Completed Default with respect to the Series 2036 Bonds,
the Company shall notify DTC and the Trustee, whereupon DTC will notify the
Participants of the availability through DTC of bond certificates. In such
event, the Trustee shall issue, transfer and exchange bond certificates as
requested by DTC in appropriate amounts pursuant to Article II of the
Restated Indenture and Section 2.03 of this Supplemental Trust Indenture.
The Company shall pay all costs in connection with the production of bond
certificates if the Company makes such a determination under this Section 2.06(c).
DTC may determine to discontinue providing its services with respect to
the Series 2036
Bonds at any time by giving written notice to the Company and the
Trustee and discharging its responsibilities with respect thereto under
applicable law. Under such circumstances (if there is no successor book-entry
depository), the Company and the Trustee shall be obligated (at the sole cost
and expense of the Company) to deliver bond certificates as described in this
Supplemental Trust Indenture.

 

15

 

If bond certificates are issued, the provisions of the Indenture shall
apply to, among other things, the transfer and exchange of such certificates
and the method of payment of principal of, premium, if any, and interest on
such certificates. Whenever DTC requests the Company and the Trustee to do so,
the Company will direct the Trustee (at the sole cost and expense of the
Company) to cooperate with DTC in taking appropriate action after reasonable
notice (1) to make available one or more separate certificates evidencing
the Series 2036 Bonds to any Participant or (2) to arrange
for another book-entry depository to maintain custody of certificates
evidencing the Series 2036
Bonds registered in the name of such depository or its nominee. Any
successor book-entry depository must be a clearing agency registered with the
Securities and Exchange Commission pursuant to Section 17A of the
Securities Exchange Act of 1934, as amended, and must enter into an agreement
with the Company and the Trustee agreeing to act as the depository and clearing
agency for the Series 2036
Bonds (except as provided in Section 2.06(g) below). After
such agreement has become effective, DTC shall present the Series 2036 Bonds
for registration of transfer in accordance with Section 2.12 of the
Restated Indenture, and the Trustee shall register them in the name of the
successor book-entry depository or its nominee and all references thereafter to
DTC shall be to such successor book-entry depository. If a successor book-entry
depository has not accepted such position before the effective date of DTC’s
termination of its services, the book-entry system shall automatically
terminate and may not be reinstated without the consent of all registered
holders of the Series 2036
Bonds.

 

(d)                                 Notwithstanding any
other provision of this Supplemental Trust Indenture to the contrary, so long
as any Series 2036
Bonds are registered in the name of Cede & Co., as nominee of
DTC, all payments with respect to the principal of, premium, if any, and interest
on such Series 2036
Bonds and all notices with respect to such Series 2036 Bonds shall be made and
given, respectively, to DTC as provided in the blanket representation letter
among DTC, the Company and the Trustee. The Trustee is hereby authorized and
directed to comply with all terms of the representation letter.

 

(e)                                  In connection with
any notice or other communication to be provided pursuant to the Indenture for
the Series 2036
Bonds by the Company or the Trustee with respect to any consent or other
action to be taken by the registered holders of the Series 2036 Bonds, the Company or the
Trustee, as the case may be, shall seek to establish a record date to the
extent permitted by the Indenture for such consent or other action and give DTC
notice of such record date not less than fifteen (15) calendar days in advance
of such record date to the extent possible. Such notice to DTC shall be given
only when DTC is the sole registered holder.

 

(f)                                    NEITHER THE COMPANY
NOR THE TRUSTEE WILL HAVE ANY RESPONSIBILITY OR OBLIGATIONS TO THE PARTICIPANTS
OR THE BENEFICIAL OWNERS WITH RESPECT TO (1) THE ACCURACY OF ANY RECORDS
MAINTAINED BY DTC OR ANY PARTICIPANT; (2) THE PAYMENT BY DTC OR ANY
PARTICIPANT OF ANY AMOUNT DUE TO ANY BENEFICIAL OWNER IN RESPECT OF THE PRINCIPAL
OF, PREMIUM, IF ANY, OR INTEREST ON THE SERIES 2036 BONDS; (3) THE DELIVERY BY
DTC OR ANY PARTICIPANT OF ANY NOTICE TO ANY BENEFICIAL OWNER WHICH IS REQUIRED
OR PERMITTED UNDER THE TERMS OF THE INDENTURE TO BE GIVEN TO REGISTERED
HOLDERS; (4) THE SELECTION OF THE BENEFICIAL OWNERS TO RECEIVE PAYMENT IN
THE EVENT OF ANY

 

16

 

PARTIAL REDEMPTION OF THE SERIES 2036 BONDS; OR (5) ANY
CONSENT GIVEN OR OTHER ACTION TAKEN BY DTC AS A REGISTERED HOLDER.

 

SO LONG AS
CEDE & CO. IS THE REGISTERED HOLDER OF THE SERIES 2036 BONDS
AS NOMINEE OF DTC, REFERENCES HEREIN TO REGISTERED HOLDERS OF THE SERIES 2036 BONDS
SHALL MEAN CEDE & CO. AND SHALL NOT MEAN THE BENEFICIAL OWNERS OF THE SERIES 2036 BONDS
NOR THE PARTICIPANTS.

 

(g)                                 The Company, in its
sole discretion, may terminate the services of DTC with respect to the Series 2036 Bonds
if the Company determines that: (i) DTC (x) is unable to discharge
its responsibilities with respect to the Series 2036 Bonds or (y) at any
time ceases to be a clearing agency registered under the Securities Exchange
Act of 1934, as amended; or (ii) there shall have occurred and be
continuing a Completed Default with respect to the Series 2036 Bonds. The Company, in its
sole discretion, may terminate the services of DTC with respect to the Series 2036 Bonds
if the Company determines that a continuation of the requirement
that all of the outstanding Bonds be registered with the registration books
kept by the Trustee in the name of Cede & Co., as nominee of DTC, is
not in the best interest of the Beneficial Owners of the Series 2036 Bonds.
After such event and if no substitute book-entry depository is appointed by the
Company, bond certificates will be delivered as described in the Indenture.

 

(h)                                 Upon the termination
of the services of DTC with respect to the Series 2036 Bonds pursuant to
subsections (c) or (g) of this Section 2.06 after which no
substitute book-entry depository is appointed, the Series 2036 Bonds shall be registered
in whatever name or names holders transferring or exchanging the Series 2036 Bonds
shall designate in accordance with the provisions of the Indenture.

 

ARTICLE III

APPOINTMENT OF AUTHENTICATING AGENT

 

SECTION 3.01.
The
Trustee shall, if requested in writing so to do by the Company, promptly
appoint an agent or agents of the Trustee who shall have authority to
authenticate registered Series 2036 Bonds in the name and on behalf of the
Trustee. Such appointment by the Trustee shall be evidenced by a certificate of
a vice-president of the Trustee delivered to the Company prior to the
effectiveness of such appointment.

 

SECTION 3.02.
(a) Any
such authenticating agent shall be acceptable to the Company and at all times
shall be a corporate bank or trust company organized and doing business under
the laws of the United States or any of its states, have a combined capital and
surplus of at least $5,000,000, be authorized under such laws to exercise
corporate trust powers and be subject to supervision or examination by Federal
or State authority. If such corporation publishes reports of condition at least
annually, pursuant to law or to the requirements of the aforesaid supervising
or examining authority, then for the purposes of this Section 3.02 the
combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published.

 

(b)                                 Any corporation into
which any authenticating agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger,
conversion

 

17

 

or consolidation
to which any authenticating agent shall be a party, or any corporation
succeeding to the corporate agency business of any authenticating agent, shall
continue to be the authenticating agent without the execution or filing of any
paper or any further act on the part of the Trustee or the authenticating
agent.

 

(c)                                  Any authenticating
agent at any time may resign by giving written notice of resignation to
the Trustee and to the Company. The Trustee may at any time, and upon
written request of the Company to the Trustee shall, terminate the agency of
any authenticating agent by giving written notice of termination to such
authenticating agent and to the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time any
authenticating agent shall cease to be eligible in accordance with the
provisions of this Section 3.02, the Trustee, unless otherwise requested
in writing by the Company, promptly shall appoint a successor authenticating
agent, which shall be acceptable to the Company. Any successor authenticating
agent upon acceptance of its appointment hereunder shall become vested with all
the rights, powers, duties and responsibilities of its predecessor hereunder,
with like effect as if originally named. No successor authenticating agent
shall be appointed unless eligible under the provisions of this Section 3.02.

 

(d)                                 The Trustee agrees to
pay to any authenticating agent, appointed in accordance with the provisions of
this Section 3.02, reasonable compensation for its services, and the
Trustee shall be entitled to be reimbursed for such payments.

 

SECTION 3.03.
If an
appointment is made pursuant to this Article III, the registered Series 2036
Bonds shall have endorsed thereon, in addition to the Trustee’s Certificate, an
alternate Trustee’s Certificate in the following form:

 

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

 

	
   

  	
  BNY MIDWEST TRUST COMPANY, as

  
	
   

  	
  Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authenticating
  Agent

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Officer

  	
   

  

 

SECTION 3.04. No provision of this Article III
shall require the Trustee to have at any time more than one such authenticating
agent for any one State or to appoint any such authenticating agent in the
State in which the Trustee has its principal place of business.

 

18

 

ARTICLE IV

FINANCING STATEMENT TO COMPLY WITH

THE UNIFORM COMMERCIAL CODE

 

SECTION 4.01. The name and address of
the debtor and secured party are set forth below:

 

	
  Debtor:

  	
   

  	
  Northern States Power Company

  414 Nicollet Mall

  Minneapolis, Minnesota 55401

  
	
   

  	
   

  	
   

  
	
  Secured Party:

  	
   

  	
  BNY Midwest Trust Company, Trustee

  2 North LaSalle Street

  Suite 1020 Chicago, Illinois 60602

  

 

NOTE: 
Northern States Power Company, the debtor above named, is “a
transmitting utility” under the Uniform Commercial Code as adopted in
Minnesota, North Dakota and South Dakota.

 

SECTION 4.02. Reference to Article I
hereof is made for a description of the property of the debtor covered by this
Financing Statement with the same force and effect as if incorporated in this Section at
length.

 

SECTION 4.03. The maturity dates and
respective principal amounts of obligations of the debtor secured and presently
to be secured by the Indenture and this Supplemental Trust Indenture, reference
to all of which for the terms and conditions thereof is hereby made with the
same force and effect as if incorporated herein at length, are as follows:

 

	
  First Mortgage Bonds

  	
   

  	
  Principal Amount

  	
   

  
	
  Series due July 1, 2025

  	
   

  	
  $

  	
  250,000,000

  	
   

  
	
  Pollution Control Series N

  	
   

  	
  $

  	
  27,900,000

  	
   

  
	
  Pollution Control Series O

  	
   

  	
  $

  	
  50,000,000

  	
   

  
	
  Pollution Control Series P

  	
   

  	
  $

  	
  50,000,000

  	
   

  
	
  Series due March 1, 2028

  	
   

  	
  $

  	
  150,000,000

  	
   

  
	
  Resource Recovery Series Q

  	
   

  	
  $

  	
  2,420,000

  	
   

  
	
  Resource Recovery Series R

  	
   

  	
  $

  	
  7,490,000

  	
   

  
	
  Pollution Control Series S

  	
   

  	
  $

  	
  69,000,000

  	
   

  
	
  Series A and Series B due August 28,
  2012

  	
   

  	
  $

  	
  450,000,000

  	
   

  
	
  Series due August 1, 2006

  	
   

  	
  $

  	
  200,000,000

  	
   

  
	
  Series due August 1, 2010

  	
   

  	
  $

  	
  175,000,000

  	
   

  
	
  Series due July 15, 2035

  	
   

  	
  $

  	
  250,000,000

  	
   

  
	
  Series due June 1, 2036

  	
   

  	
  $

  	
  400,000,000

  	
   

  

 

SECTION 4.04. This Financing Statement
is hereby adopted for all of the First Mortgage Bonds of the Series mentioned
above secured by said Indenture and this Supplemental Trust Indenture.

 

 

19

 

SECTION 4.05. The 1937 Indenture, the
Restated Indenture and the prior Supplemental Indentures, as set forth below,
have been filed or recorded in each and every office in the States of
Minnesota, North Dakota and South Dakota designated by law for the filing or
recording thereof in respect of all property of the Company subject thereto:

 

	
  Original
  Indenture

  Dated February 1, 1937

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated June 1, 1942

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated February 1, 1944

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated October 1, 1945

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated July 1, 1948

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated August 1, 1949

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated June 1, 1952

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated October 1, 1954

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated September 1, 1956

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated August 1, 1957

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated July 1, 1958

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated December 1, 1960

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated August 1, 1961

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated June 1, 1962

  	
   

  

 

20

 

	
  Supplemental
  Indenture

  Dated September 1, 1963

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated August 1, 1966

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated June 1, 1967

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated October 1, 1967

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated May 1, 1968

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated October 1, 1969

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated February 1, 1971

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated May 1, 1971

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated February 1, 1972

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated January 1, 1973

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated January 1, 1974

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated September 1, 1974

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated April 1, 1975

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated May 1, 1975

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated March 1, 1976

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated June 1, 1981

  	
   

  

 

21

 

	
  Supplemental
  Indenture

  Dated December 1, 1981

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated May 1, 1983

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated December 1, 1983

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated September 1, 1984

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated December 1, 1984

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated May 1, 1985

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated September 1, 1985

  	
   

  
	
   

  	
   

  
	
  Supplemental
  and Restated Indenture

  Dated May 1, 1988

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated July 1, 1989

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated June 1, 1990

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated October 1, 1992

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated April 1, 1993

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated December 1, 1993

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated February 1, 1994

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated October 1, 1994

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated June 1, 1995

  	
   

  

 

22

 

	
  Supplemental
  Indenture

  Dated April 1, 1997

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated March 1, 1998

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated May 1, 1999

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated June 1, 2000

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated August 1, 2000

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated June 1, 2002

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated July 1, 2002

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated August 1, 2002

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated May 1, 2003

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated August 1, 2003

  	
   

  
	
   

  	
   

  
	
  Supplemental
  Indenture

  Dated July 1, 2005

  	
   

  

 

SECTION 4.06. The property covered by
this Financing Statement also shall secure additional series of First
Mortgage Bonds of the debtor which may be issued from time to time in the
future in accordance with the provisions of the Indenture.

 

ARTICLE V

MISCELLANEOUS

 

SECTION 5.01. The recitals of fact
herein, except the recital that the Trustee has duly determined to execute this
Supplemental Trust Indenture and be bound, insofar as it may lawfully so
do, by the provisions hereof and in the bonds shall be taken as statements of
the Company and shall not be construed as made by the Trustee. The Trustee
makes no representations as to the value of any of the property subject to the
lien of the Indenture, or any part thereof, or as to the title of the
Company thereto, or as to the security afforded thereby and hereby, or as to
the validity of this Supplemental Trust Indenture or of the bonds issued under
the

 

23

 

Indenture by virtue hereof (except the Trustee’s certificate) and the
Trustee shall incur no responsibility in respect of such matters.

 

SECTION 5.02. This Supplemental Trust
Indenture shall be construed in connection with and as a part of the
Indenture.

 

SECTION 5.03. (a) If any provision
of the Indenture or this Supplemental Trust Indenture limits, qualifies or
conflicts with another provision of the Indenture required to be included in
indentures qualified under the Trust Indenture Act of 1939, as amended (as
enacted prior to the date of this Supplemental Trust Indenture) by any of the
provisions of Sections 310 to 317, inclusive, of the said Act, such required
provision shall control.

 

(b)                                 In case any one or
more of the provisions contained in this Supplemental Trust Indenture or in the
bonds issued hereunder shall be invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions
contained herein and therein shall not in any way be affected, impaired,
prejudiced or disturbed thereby.

 

SECTION 5.04. Wherever in this
Supplemental Trust Indenture the word “Indenture” is used without the prefix “1937,”
“Original,” “Restated,” or “Supplemental,” such word was used intentionally to
include in its meaning both the 1937 Indenture, as amended and restated by the
Restated Indenture, and all indentures supplemental thereto.

 

SECTION 5.05. Wherever in this
Supplemental Trust Indenture either of the parties hereto is named or referred
to, this shall be deemed to include the successors or assigns of such party,
and all the covenants and agreements in this Supplemental Trust Indenture
contained by or on behalf of the Company or by or on behalf of the Trustee
shall bind and inure to the benefit of the respective successors and assigns of
such parties, whether so expressed or not.

 

SECTION 5.06. (a) This Supplemental
Trust Indenture may be executed simultaneously in several counterparts,
and all said counterparts executed and delivered, each as an original, shall
constitute but one and the same instrument.

 

(b)                                 The Table of Contents
and the descriptive headings of the several Articles of this Supplemental Trust
Indenture were formulated, used and inserted in this Supplemental Trust
Indenture for convenience only and shall not be deemed to affect the meaning or
construction of any of the provisions hereof.

 

The total aggregate amount of obligations to
be issued forthwith under this Supplemental Trust Indenture is $400,000,000.

 

24

 

IN WITNESS WHEREOF, on this 18th day of May,
A.D. 2006, NORTHERN STATES POWER COMPANY, a Minnesota corporation, party of the
first part, has caused its corporate name and seal to be hereunto affixed and
this Supplemental Trust Indenture effective May 1, 2006, to be signed by
its President or a Vice President, and attested by its Secretary or an
Assistant Secretary, for and in its behalf, and BNY MIDWEST TRUST COMPANY (as
successor trustee to Harris Trust and Savings Bank), an Illinois corporation,
as Trustee, party of the second part, to evidence its acceptance of the trust
hereby created, has caused its corporate name and seal to be hereunto affixed,
and this Supplemental Trust Indenture effective May 1, 2006, to be signed
by its President, a Vice President or an Assistant Vice President, and attested
by its Secretary or an Assistant Secretary, for and in its behalf.

 

	
   

  	
   

  	
  NORTHERN STATES POWER COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ George
  E. Tyson II

  	
   

  
	
   

  	
   

  	
  By: George E. Tyson 

  
	
   

  	
   

  	
  II Its: Vice President and Treasurer

  

 

	
  Attest:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Patrice
  D. Blaeser

  	
   

  
	
  By: Patrice D. Blaeser 

  
	
  Its: Assistant Secretary

  
			

 

	
  Executed by Northern States Power Company

  	
  (CORPORATE SEAL)

  
	
  in the presence of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Mary P.
  Schell

  	
   

  	
   

  	
   

  
	
  Mary P. Schell, Witness

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Robert
  E. LaBahn

  	
   

  	
   

  	
   

  
	
  Robert E. LaBahn, Witness

  	
   

  	
   

  

 

 

	
   

  	
  BNY MIDWEST TRUST COMPANY, as

  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ D. G. Donovan

  	
   

  
	
   

  	
  By: D. G. Donovan

  
	
   

  	
  Its: Vice President

  

 

Attest:

 

 

	
  /s/ L.
  Garcia

  	
   

  
	
  By: L. Garcia

  
	
  Its: Assistant Vice President

  

 

	
  Executed by BNY Midwest Trust Company in

  the presence of:

  	
  (CORPORATE SEAL)

  
	
   

  	
   

  
	
  /s/ T.
  Mosterd

  	
   

  	
   

  
	
  Witness: T. Mosterd 

  	
   

  
	
   

  	
   

  
	
  /s/ J. Braun

  	
   

  	
   

  
	
  Witness: J. Braun

  	
   

  

 

 

	
  STATE OF MINNESOTA

  	
  )

  	
   

  
	
   

  	
  )

  	
  SS.:

  
	
  COUNTY OF HENNEPIN

  	
  )

  	
   

  

 

On this 18th day of May, A.D. 2006, before
me, Sharon M. Quellhorst, a Notary Public in and for said County in the State
aforesaid, personally appeared George E. Tyson II and Patrice D.
Blaeser, to me
personally known, and to me known to be the Vice President and Treasurer and
Assistant Secretary, respectively, of Northern States Power Company, one of the
corporations described in and which executed the within and foregoing
instrument, and who, being by me severally duly sworn, each for himself, did
say that he, the said George E. Tyson II is a Vice President and Patrice D.
Blaeser is an Assistant Secretary, of said Northern States Power Company, a
corporation; that the seal affixed to the within and foregoing instrument is
the corporate seal of said corporation, and that said instrument was executed
on behalf of said corporation by authority of its stockholders and board of
directors; and said George E. Tyson II and Patrice D. Blaeser each acknowledged
said instrument to be the free act and deed of said corporation and that such
corporation executed the same.

 

WITNESS my hand and notarial seal, this 18th
day of May, A.D. 2006.

 

	
  /s/ Sharon
  M. Quellhorst

  	
   

  	
   

  
	
  Sharon
  M. Quellhorst

  	
   

  
	
  Notary Public

  	
   

  
	
  My commission expires: January 31,
  2010

  	
   

  
	
   

  	
   

  
	
   

  	
  (NOTARY SEAL)

  

 

 

 

	
  STATE OF MINNESOTA

  	
  )

  	
   

  
	
   

  	
  )

  	
  SS.:

  
	
  COUNTY OF HENNEPIN

  	
  )

  	
   

  

 

George E.
Tyson II and Patrice D. Blaeser, being severally duly sworn,
each deposes and says that they are Vice President and Treasurer and Assistant
Secretary, respectively, of Northern States Power Company, the corporation
described in and which executed the within and foregoing Supplemental Trust
Indenture, as mortgagor; and each for himself further says that said
Supplemental Trust Indenture was executed in good faith, and not for the
purpose of hindering, delaying, or defrauding any creditor of the said
mortgagor.

 

	
  /s/ George
  E. Tyson II

  	
   

  	
   

  	
  /s/ Patrice
  D. Blaeser

  	
   

  
	
  George E. Tyson II

  	
   

  	
  Patrice
  D. Blaeser

  

 

Subscribed and sworn to before me this 18th day of May, A.D. 2006.

 

	
  /s/ Sharon
  M. Quellhorst

  	
   

  
	
  Sharon
  M. Quellhorst  

  Notary Public 

  My commission expires: January 31, 2010

  
	
   

  	
  (NOTARY SEAL)

  
			

 

 

	
  STATE OF ILLINOIS

  	
  )

  	
   

  
	
   

  	
  )

  	
  SS.:

  
	
  COUNTY OF COOK

  	
  )

  	
   

  

 

On this 18th day of May, A.D. 2006, before
me, Anabella Hernandez, a Notary Public in and for said County in the State aforesaid,
personally appeared D. G. Donovan and L. Garcia to me personally known, and to
me known to be the Vice President and Assistant Vice President, respectively,
of BNY Midwest Trust Company, one of the corporations described in and which
executed the within and foregoing instrument, and who, being by me severally
duly sworn, each, did say that he, the said D. G. Donovan, is Vice President,
and she, the said L. Garcia, is the Assistant Vice President, of said BNY
Midwest Trust Company, a corporation; that the seal affixed to the within and
foregoing instrument is the corporate seal of said corporation, and that said
instrument was executed on behalf of said corporation by authority of its board
of directors; and said D. G. Donovan and L. Garcia each acknowledged said
instrument to be the free act and deed of said corporation and that such
corporation executed the same.

 

WITNESS my hand and notarial seal, this 18th
day of May, A.D. 2006.

 

	
  /s/ Anabella Hernandez

  	
   

  	
   

  
	
  Anabella
  Hernandez 

  Notary Public 

  My commission expires: July 8, 2006

  	
   

  
	
   

  	
  (NOTARY SEAL)

  

 

 

	
  STATE OF ILLINOIS

  	
  )

  	
   

  
	
   

  	
  )

  	
  SS.:

  
	
  COUNTY OF COOK

  	
  )

  	
   

  

 

D. G. Donovan and L. Garcia, being severally duly sworn, each for
himself/herself deposes and says that he, the said D. G. Donovan, is Vice
President, and she, the said L. Garcia, is Assistant Vice President, of BNY
Midwest Trust Company, the corporation described in and which executed the
within and foregoing Supplemental Trust Indenture, as mortgagee; and each for
himself further says that said Supplemental Trust Indenture was executed in
good faith, and not for the purpose of hindering, delaying, or defrauding any
creditor of the mortgagor.

 

	
  /s/ D. G.
  Donovan

  	
   

  	
   

  	
  /s/ L.
  Garcia

  	
   

  
	
  D. G.
  Donovan

  	
   

  	
  L.
  Garcia

  

 

Subscribed and sworn to before me this 18th day of May, A.D. 2006.

 

	
  /s/ Anabella Hernandez 

  	
   

  	
   

  
	
  Anabella
  Hernandez  

  Notary
  Public 

  My commission expires: July 8, 2006

  	
   

  
	
   

  	
   

  
	
   

  	
  (NOTARY SEAL)

  

 

 

SCHEDULE A

 

The property referred to in Article I of
the foregoing Supplemental Trust Indenture from Northern States Power Company
to BNY Midwest Trust Company, Trustee, made as of May 1, 2006, includes
the following property hereinafter more specifically described. Such
description, however, is not intended to limit or impair the scope or intention
of the general description contained in the granting clauses or elsewhere in
the Indenture.

 

I. PROPERTIES IN THE STATE OF MINNESOTA

 

1.                                       The
following described real property, situate, lying and being in the County of
Ramsey, to-wit:

 

That part of Lot 1, Block 1, Centre
Pointe Business Park, according to the recorded plat thereof, Ramsey County,
Minnesota, which lies Northeasterly of a line described as

 

commencing at the most Southerly corner of
said Lot 1; thence Northeasterly, along the Southerly line of said Lot 1, a
distance of 61.01 feet, along a curve concave to the Southeast having a radius
of 325.00 feet and a central angle of 10 degrees 45 minutes 19 seconds to a
point of tangency on said Southeasterly line of Lot 1; thence North 45 degrees
00 minutes 00 seconds East, assumed bearing, tangent to said curve, along said
Southeasterly line of Lot 1, a distance of 167.00 feet to the point of
beginning of the line to be described; thence North 45 degrees 00 minutes 00
seconds West, a distance of 160.00 feet; thence North 59 degrees 05 minutes 20
seconds West, a distance of 139.49 feet to the Northwesterly line of said Lot 1
and said line there terminating.

 

2.                                       The
following described real property, situate, lying and being in the County of
Dakota, to-wit:

 

The South 501
feet of the West 1011 feet of the Southwest Quarter of the Southeast Quarter
(SW1/4SE1/4), Section 25, Township 114, Range 20.

 

II. TRANSMISSION LINES OF THE COMPANY

IN THE STATE OF MINNESOTA

 

The electric transmission lines of the Company, including towers, poles,
pole lines, wire, switch racks, switchboards, insulators, and other appliances
and equipment, and all other property forming a part thereof or
appertaining thereto, and all service lines extending therefrom; together with
all rights for or relating to the construction, maintenance of operation
thereof, through, over, under, or upon any private property of public streets
or highways within as well as without the corporate limits of any municipal
corporation, and particularly the following described lines, to-wit:

 

	
  Line 5540

  	
  0.43 Miles

  	
  Split Rock – Angus Anson

  
	
   

  	
   

  	
  Minnehaha County, SD., Sec.’s 29, 30, 31, 32, T.102N., R.48W.

  

 

 

III. GAS DISTRIBUTION SYSTEMS OF THE COMPANY

IN THE STATE OF MINNESOTA

 

The electric
transmission lines of the Company, including towers, poles, pole lines, wire,
switch racks, switchboards, insulators, and other appliances and equipment, and
all other property forming a part thereof or
appertaining thereto, and all service lines extending therefrom; together with
all rights for or relating to the construction, maintenance of operation
thereof, through, over, under, or upon any private property of public streets
or highways within as well as without the corporate limits of any municipal
corporation, and particularly the following described lines, to-wit:

 

	
  Line 5542

  	
  0.30 Miles

  	
  Wilmarth –
  Calpine Generator Interconnection #1

  
	
   

  	
   

  	
  Blue Earth
  County, MN., Sec. 31, T109N, R26W

  
	
   

  	
   

  	
   

  
	
  Line 5543

  	
  0.26 Miles

  	
  Wilmarth –
  Calpine Generator Interconnection #2

  
	
   

  	
   

  	
  Blue Earth
  County, MN., Sec. 31, T109N, R26W

  
	
   

  	
   

  	
   

  
	
  Line 0974

  	
  0.28 Miles

  	
  Wilmarth –
  Calpine Generator Interconnection #3

  
	
   

  	
   

  	
  Blue Earth
  County, MN., Sec. 31, T109N, R26W

  

 

 

This
instrument was drafted by Northern States Power Company, 414 Nicollet Mall,
Minneapolis, Minnesota 55401.

 

Tax statements
for the real property described in this instrument should be sent to Northern
States Power Company, 414 Nicollet Mall, Minneapolis, Minnesota 55401.

 

Return
recorded document(s) to Lori R. Pagel, GO-Mezzanine, Xcel Energy, 414 Nicollet
Mall, Minneapolis, Minnesota 55401.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00104-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00104-of-00352.parquet"}]]