Document:

Exhibit 4(b)

Exhibit 4(b)

 

LOAN AGREEMENT

2010 SERIES A

BETWEEN

THE INDUSTRIAL DEVELOPMENT AUTHORITY

OF THE COUNTY OF PIMA

AND

TUCSON ELECTRIC POWER COMPANY

 

DATED AS OF OCTOBER 1, 2010

 

RELATING TO

INDUSTRIAL DEVELOPMENT REVENUE BONDS,

2010 SERIES A

(TUCSON ELECTRIC POWER COMPANY PROJECT)

 

 

 

 

TABLE OF CONTENTS*

	 	 	 	 	 
	 	 	Page	 
	 
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	DEFINITIONS
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01 Definitions
	 	 	1	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	REPRESENTATIONS AND WARRANTIES
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01 Representations and Warranties of the Authority
	 	 	1	 
	SECTION 2.02 Representations and Warranties of the Company
	 	 	2	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	THE FACILITIES
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.01 Facilities; Property of the Company
	 	 	3	 
	SECTION 3.02 Construction of the Facilities
	 	 	3	 
	SECTION 3.03 Insufficient Moneys in Construction Fund
	 	 	3	 
	SECTION 3.04 Revision of Plans and Specifications
	 	 	3	 
	SECTION 3.05 Certification of Completion Date
	 	 	4	 
	SECTION 3.06 Maintenance of Facilities; Remodeling
	 	 	4	 
	SECTION 3.07 Insurance
	 	 	4	 
	SECTION 3.08 Condemnation
	 	 	5	 
	SECTION 3.09 Termination of Construction
	 	 	5	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	ISSUANCE OF THE BONDS; THE LOAN; DISPOSITION OF PROCEEDS
OF THE BONDS
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.01 Issuance of the Bonds
	 	 	5	 
	SECTION 4.02 Issuance of Other Obligations
	 	 	5	 
	SECTION 4.03 The Loan; Disposition of Bond Proceeds
	 	 	5	 
	SECTION 4.04 Disbursements from Construction Fund
	 	 	6	 
	SECTION 4.05 Investment of Moneys in Funds and Accounts
	 	 	7	 

 

	 	 	 
	*	 	This table of contents is not part of the Loan
Agreement, and is for convenience only. The captions herein are of no legal
effect and do not vary the meaning or legal effect of any part of the Loan
Agreement.

 

i

 

	 	 	 	 	 
	 	 	Page	 
	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	LOAN PAYMENTS; OTHER OBLIGATIONS
	 	 	 	 
	 
	 	 	 	 
	SECTION 5.01 Loan Payments
	 	 	7	 
	SECTION 5.02 Payments Assigned; Obligation Absolute
	 	 	7	 
	SECTION 5.03 Payment of Expenses
	 	 	8	 
	SECTION 5.04 Indemnification
	 	 	8	 
	SECTION 5.05 Payment of Taxes; Discharge of Liens
	 	 	9	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	 
	 	 	 	 
	SPECIAL COVENANTS
	 	 	 	 
	 
	 	 	 	 
	SECTION 6.01 Maintenance of Legal Existence
	 	 	9	 
	SECTION 6.02 Permits or Licenses
	 	 	10	 
	SECTION 6.03 Authority’s Access to Facilities
	 	 	10	 
	SECTION 6.04 Tax-Exempt Status of Interest on Bonds
	 	 	10	 
	SECTION 6.05 Use of Facilities
	 	 	11	 
	SECTION 6.06 Financing Statements
	 	 	12	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	 
	 	 	 	 
	ASSIGNMENT, LEASING AND SELLING
	 	 	 	 
	 
	 	 	 	 
	SECTION 7.01 Conditions
	 	 	12	 
	SECTION 7.02 Instrument Furnished to the Authority and Trustee
	 	 	14	 
	SECTION 7.03 Limitation
	 	 	14	 
	 
	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	 
	 	 	 	 
	EVENTS OF DEFAULT AND REMEDIES
	 	 	 	 
	 
	 	 	 	 
	SECTION 8.01 Events of Default
	 	 	14	 
	SECTION 8.02 Force Majeure
	 	 	15	 
	SECTION 8.03 Remedies
	 	 	15	 
	SECTION 8.04 No Remedy Exclusive
	 	 	16	 
	SECTION 8.05 Reimbursement of Attorneys’ and Agents’ Fees
	 	 	16	 
	SECTION 8.06 Waiver of Breach
	 	 	16	 
	 
	 	 	 	 
	ARTICLE IX
	 	 	 	 
	 
	 	 	 	 
	REDEMPTION OF BONDS
	 	 	 	 
	 
	 	 	 	 
	SECTION 9.01 Redemption of Bonds
	 	 	16	 
	SECTION 9.02 Compliance with the Indenture
	 	 	17	 

 

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	 	 	Page	 
	 
	 	 	 	 
	ARTICLE X

MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	SECTION 10.01 Term of Agreement
	 	 	17	 
	SECTION 10.02 Notices
	 	 	17	 
	SECTION 10.03 Parties in Interest
	 	 	17	 
	SECTION 10.04 Amendments
	 	 	18	 
	SECTION 10.05 Counterparts
	 	 	18	 
	SECTION 10.06 Severability
	 	 	18	 
	SECTION 10.07 Governing Law
	 	 	18	 
	SECTION 10.08 Notice Regarding Cancellation of Contracts
	 	 	18	 
	 
	 	 	 	 
	Exhibit A — Description of the Facilities
	 	 	A-1	 

 

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LOAN AGREEMENT

THIS LOAN AGREEMENT (2010 Series A), dated as of October 1, 2010 (this “Agreement”), between
THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF PIMA, an Arizona nonprofit corporation
designated by law as a political subdivision of the State of Arizona (hereinafter called the
“Authority”), and TUCSON ELECTRIC POWER COMPANY, a corporation organized and existing under the
laws of the State of Arizona (hereinafter called the “Company”),

W I T N E S S E T H:

WHEREAS, the Authority is authorized and empowered under Title 35, Chapter 5, Arizona Revised
Statutes, as amended (the “Act”), to issue its bonds in accordance with the Act and to make secured
or unsecured loans for the purpose of financing or refinancing the acquisition, construction,
improvement or equipping of projects consisting of land, any building or other improvement, and all
real and personal properties, including machinery and equipment, whether or not now in existence or
under construction, whether located within or without the State of Arizona or Pima County, which
shall be suitable for, among other things, facilities for the furnishing of electric energy, gas or
water, and to charge and collect interest on such loans and pledge the proceeds of loan agreements
as security for the payment of the principal of and interest on bonds, or designated issues of
bonds, issued by the Authority and any agreements made in connection therewith, whenever the Board
of Directors of the Authority finds such loans to further advance the interest of the Authority or
the public and in the public interest; and

WHEREAS, the Authority proposes to issue and sell its revenue bonds for the purpose of
financing a portion of the costs of the acquisition, construction, improvement and equipping of
certain of the facilities for furnishing electric energy described in Exhibit A hereto (the
“Facilities”) pursuant to an Indenture of Trust, dated as of October 1, 2010 (the “Indenture”),
between the Authority and U.S. Bank Trust National Association, as trustee (the “Trustee”);

NOW, THEREFORE, the parties hereto, intending to be legally bound hereby and in consideration
of the premises, DO HEREBY AGREE as follows:

ARTICLE I

DEFINITIONS

SECTION 1.01 Definitions. The terms used in this Agreement shall for all purposes of this
Agreement have the meanings specified in Section 1.01 of the Indenture, unless the context clearly
requires otherwise:

ARTICLE II

REPRESENTATIONS AND WARRANTIES

SECTION 2.01 Representations and Warranties of the Authority. The Authority makes the
following representations and warranties as the basis for the undertakings on the part of the
Company contained herein:

(a) The Authority is an Arizona nonprofit corporation designated by law as a political
subdivision of the State of Arizona created and existing under the Constitution and laws of
the State of Arizona;

 

 

 

(b) The Authority has the power to enter into this Agreement and the Indenture and to
perform and observe the agreements and covenants on its part contained herein and therein,
including without limitation the power to issue and sell the Bonds as contemplated herein
and in the Indenture, and by proper action has duly authorized the execution and delivery
hereof and thereof; and

(c) The execution and delivery of this Agreement and the Indenture by the Authority do
not, and consummation of the transactions contemplated hereby and fulfillment of the terms
hereof and thereof by the Authority will not, result in a breach of any of the terms or
provisions of, or constitute a default under, any indenture, mortgage, deed of trust or
other agreement or instrument to which the Authority is now a party or by which it is now
bound, or, to the best knowledge of the Authority, any order, rule or regulation applicable
to the Authority of any court or of any regulatory body or administrative agency or other
governmental body having jurisdiction over the Authority or over any of its properties, or
the Constitution or laws of the State of Arizona.

SECTION 2.02 Representations and Warranties of the Company. The Company makes the following
representations and warranties as the basis for the undertakings on the part of the Authority
contained herein:

(a) The Company is a corporation duly organized and existing in good standing under
the laws of the State of Arizona;

(b) The Company has power to enter into this Agreement and to perform and observe the
agreements and covenants on its part contained herein and by proper corporate action has
duly authorized the execution and delivery hereof and of all other documents required hereby
to be executed by the Company;

(c) The execution and delivery of this Agreement by the Company do not, and
consummation of transactions contemplated hereby and fulfillment of the terms hereof by the
Company will not, result in a breach of any of the terms or provisions of, or constitute a
default under, any indenture, mortgage, deed of trust or other agreement or instrument to
which the Company is a party or by which it is now bound, or the Restated Articles of
Incorporation or bylaws of the Company, or any order, rule or regulation applicable to the
Company of any court or of any regulatory body or administrative agency or other
governmental body having jurisdiction over the Company or over any of its properties, or any
statute of any jurisdiction applicable to the Company;

 

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(d) The Arizona Corporation Commission has approved all matters relating to the
Company’s participation in the transactions contemplated by this Agreement which require
said approval, and no other consent, approval, authorization or other order of any
regulatory body or administrative agency or other governmental body is legally required
for the Company’s participation therein, except such as may have been obtained or may
be required under the securities laws of any jurisdiction;

(e) The Facilities are to be used solely for purposes contemplated by the Act and are
located within the County of Pima, Arizona; and

(f) The Company estimates that all of the proceeds of the Bonds will be expended to
pay the Cost of Construction.

ARTICLE III

THE FACILITIES

SECTION 3.01 Facilities; Property of the Company. The Facilities shall be the property of the
Company and the Authority shall have no right, title or interest in the Facilities, nor any
obligation regarding the Facilities.

SECTION 3.02 Construction of the Facilities. The Company shall cause the Facilities to be
constructed with all reasonable dispatch in order to effectuate the purposes of the Act. The
Company shall have the sole responsibility under this Agreement for the construction of the
Facilities and may perform the same itself or through its agents, and may make or issue such
contracts, orders, receipts and instructions, and in general do or cause to be done all such other
things as it may in its sole discretion consider requisite or advisable for the construction of the
Facilities and for fulfilling its obligations under this ARTICLE III. The Company shall have full
authority and the sole right under this Agreement to supervise and control, directly or indirectly,
all aspects of the construction of the Facilities.

SECTION 3.03 Insufficient Moneys in Construction Fund. If the moneys in the Construction
Fund, together with any other moneys made available to pay the Cost of Construction, shall not be
sufficient to pay the Cost of Construction in full, then the Company shall pay all that portion of
the Cost of Construction in excess of the moneys available therefor.

The Authority does not make any warranty, either express or implied, that the moneys which
will be paid into the Construction Fund will be sufficient to pay the Cost of Construction in full.

If the Company makes any payments pursuant to this Section 3.03, it shall not be entitled to
any reimbursement therefor from the Authority (except from the proceeds of any obligations
subsequently issued by the Authority in respect of the Facilities), the Trustee or the Owners of
the Bonds, nor shall it be entitled to any diminution in or postponement of the payment of the Loan
Payments or the payment of any other amounts payable under this Agreement.

 

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SECTION 3.04 Revision of Plans and Specifications. The Company may cause one or more
revisions to be made to the plans and specifications for the Facilities (including without
limitation any changes therein, additions thereto, substitutions therefor and deletions therefrom),
at any time and from time to time prior to the Completion Date in any respect; provided, however,
that, if any such revision shall render inaccurate the description of the Facilities contained in
Exhibit A hereto, the Company shall deliver to the Authority and the Trustee (a) a
revised Exhibit A containing a description of the Facilities as revised, the accuracy of which
shall have been certified by an Authorized Company Representative, and (b) an opinion of Bond
Counsel to the effect that the Facilities as described in the revised Exhibit A are such that the
expenditure of the proceeds of the Bonds pursuant to this Agreement will not, in and of itself,
impair the validity of the Bonds under the Act or the exclusion from gross income for federal tax
purposes of interest on the Bonds. A revision of Exhibit A hereto pursuant to this Section 3.04
shall not constitute an amendment, change or modification of this Agreement within the meaning of
Article XII of the Indenture.

SECTION 3.05 Certification of Completion Date. The Completion Date shall be the date on which
the Facilities are completed in their entirety and ready to be placed in service and operated, all
as determined by the Company. Promptly after the Completion Date, the Company shall submit to the
Authority and the Trustee a certificate, executed by an Authorized Company Representative, which
shall specify the Completion Date and shall state that (a) construction of the Facilities has been
completed and the Cost of Construction has been paid, except for any portion thereof which has been
incurred but is not then due and payable, or the liability for the payment of which is being
contested or disputed by the Company, and for the payment of which the Trustee is directed to
retain specified amounts of moneys in specified accounts within the Construction Fund, and (b) the
Facilities are suitable for operation for the purposes for which they were designed.
Notwithstanding the foregoing, such certificate may state that it is given without prejudice to any
rights against third parties which exist at the date thereof or which may subsequently come into
being.

SECTION 3.06 Maintenance of Facilities; Remodeling. The Company shall at all times cause the
Facilities, and every element and unit thereof, to be maintained, preserved and kept in thorough
repair, working order and condition and cause all needful and proper repairs and renewals thereto
to be made; provided, however, that the Company may cause the operation of the Facilities, or any
element or unit thereof, to be discontinued if, in the judgment of the Company, it is no longer
advisable to operate the same, or if the Company intends to sell or dispose of the same and within
a reasonable time shall endeavor to effectuate such sale or disposition.

After the Completion Date, the Company may, subject to the provisions of Section 6.05 hereof,
at its own expense remodel the Facilities or make such substitutions, modifications and
improvements to the Facilities from time to time as it, in its discretion, may deem to be desirable
for its uses and purposes, which remodeling, substitutions, modifications and improvements shall be
included under the terms of this Agreement as part of the Facilities.

SECTION 3.07 Insurance. The Company shall keep the Facilities insured against fire and other
risks to the extent usually insured against by companies owning and operating similar property, by
reputable insurance companies or, at the Company’s election, with respect to all or any element or
unit of the Facilities, by means of an adequate insurance fund set aside and maintained by it out
of its own earnings or in conjunction with other companies through an insurance fund, trust or
other agreement or, by means of unfunded self-insurance as may be reasonable and customary by
companies owning and operating similar property. All proceeds of such insurance shall be for the
account of the Company.

 

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SECTION 3.08 Condemnation. The Company shall be entitled to the entire proceeds of any
condemnation award or portion thereof made for damages to or takings of the Facilities or other
property of the Company.

SECTION 3.09 Termination of Construction. (a) Anything in this Agreement to the contrary
notwithstanding, the Company shall have the right at any time to terminate the construction of the
Facilities, in whole, if the Company shall have determined that the continued construction or
operation of the Facilities, in whole, is impracticable, uneconomical or undesirable for any
reason.

(b) Promptly after the termination of the construction of the Facilities financed with the
proceeds of the Bonds, the Company shall submit to the Authority and the Trustee a certificate,
executed by an Authorized Company Representative, which shall state the reasons for such
termination and shall state that the Cost of Construction, to the extent of the construction of the
Facilities as of the date of such termination, has been paid, except for any Cost of Construction
which have been incurred but are not then due and payable, or the liability for the payment of
which is being contested or disputed by the Company, and for the payment of which the Trustee is
directed to retain specified amounts of moneys in the Construction Fund. Notwithstanding the
foregoing, such certificate may state that it is given without prejudice to any rights against
third parties which exist at the date thereof or which may subsequently come into being.

ARTICLE IV

ISSUANCE OF THE BONDS; THE LOAN; DISPOSITION OF PROCEEDS

OF THE BONDS

SECTION 4.01 Issuance of the Bonds. The Authority shall issue the Bonds under and in
accordance with the Indenture, subject to the provisions of the bond purchase agreement among the
Authority, the initial purchaser or purchasers of the Bonds and the Company. The Company hereby
approves the issuance of the Bonds and all terms and conditions thereof.

SECTION 4.02 Issuance of Other Obligations. The Authority and the Company expressly reserve
the right to enter into, to the extent permitted by law, but shall not be obligated to enter into,
an agreement or agreements other than this Agreement with respect to the issuance by the Authority,
under an indenture or indentures other than the Indenture, of obligations to provide additional
funds to pay the Cost of Construction of the Facilities or obligations to refund all or any
principal amount of the Bonds, or any combination thereof.

SECTION 4.03 The Loan; Disposition of Bond Proceeds. The Authority shall lend to the Company
the proceeds of the issuance and sale of the Bonds for the purposes specified in this Agreement,
such proceeds to be applied as hereinafter and in the Indenture provided.

The Authority shall establish the Bond Fund and the Construction Fund with the Trustee in
accordance with Sections 4.01 and 5.01 of the Indenture. The proceeds of the issuance and sale of
the Bonds shall be deposited into the Construction Fund in accordance with the provisions of the
Indenture.

 

5

 

The moneys on deposit in the Construction Fund shall be applied by the Trustee as provided in
Section 4.04 hereof and as otherwise provided in Article V of the Indenture. Until the moneys on
deposit in the Construction Fund are so applied, such moneys shall be and remain the property of
the Authority, subject to the lien of the Indenture, and the Company shall have no right, title or
interest therein except as expressly provided in this Agreement and the Indenture. However, in
order to secure the payment by the Company of the Loan Payments, and the payment by the Authority
of the principal of and interest on the Bonds, and the performance and observance by the Company
and the Authority of all covenants and conditions expressed herein and in the Indenture and
contained in the Bonds, the Company hereby mortgages, pledges, assigns, creates and grants a
security interest in and confirms to the Trustee such right, title and interest as the Company may
be deemed to have or hereafter acquire in the proceeds of the issuance and sale of the Bonds to be
deposited into the Construction Fund and the proceeds from the investment and reinvestment thereof,
upon terms and conditions co-extensive with those set forth in the Indenture with respect to the
lien and security interest of the Trustee in the Trust Estate (as defined in the Indenture).

SECTION 4.04 Disbursements from Construction Fund. (a) To the extent that moneys on deposit
in the Construction Fund shall not otherwise have been applied in accordance with the provisions of
Article V of the Indenture, such moneys shall be loaned to the Company to reimburse the Company for
portions of the Cost of Construction paid by it or to make payments to persons designated by the
Company in respect of portions of the Cost of Construction, upon receipt by the Trustee of
requisitions executed by, or communications by telegram, e-mail in PDF format or facsimile
transmission from, an Authorized Company Representative, which requisitions or communications shall
state with respect to each payment to be made: (i) the requisition number, (ii) the name and
address of the person, firm or corporation to whom payment is due or has been made (or, in the case
of payments to the Bond Fund, instructions to make such payments thereto), (iii) the amount paid or
to be paid, (iv) (A) that each obligation, item of cost or expense with respect to which such
requisition is being made has been properly incurred and has been paid or is then due and payable
as an item of the Cost of Construction, is a proper charge against the Construction Fund, and has
not been the basis of any previous final payment therefrom or from the proceeds of any other
obligations issued by the Authority or (B) in the event that a portion of the Bonds shall have been
paid, redeemed or deemed to have been paid within the meaning of Article VIII of the Indenture by
reason of the application of the proceeds of the sale of any obligations issued under an indenture
other than the Indenture and if the payment of such requisition is to be made into the
construction, acquisition or other similar fund created under such other indenture, that upon
disbursement from such construction, acquisition or other similar fund, each obligation, item of
cost or expense mentioned in the requisition for such disbursement substantially in the form
attached as Exhibit D to the Indenture, will have been properly incurred and will have been paid or
will then be due and payable as an item of the Cost of Construction, will be a proper charge
against the construction, acquisition or other similar fund under such indenture, and will not have
been the basis of any previous final payment therefrom or from the proceeds of any other revenue
bonds issued by the Authority, (v) that the payment of such requisition will not result in a breach
of any of the covenants of the Company contained in subsection (c) or (d) of this Section 4.04 and
(vi) that, to the best of the knowledge of such Authorized Company Representative, there shall not
have occurred and be continuing any Event of Default described in Section 8.01 hereof. Any such
communication by telegram, e-mail or facsimile transmission shall be promptly confirmed by a
requisition executed by an Authorized Company Representative. The Company shall furnish to
the Authority a copy of each requisition delivered to the Trustee promptly upon request therefor.

 

6

 

(b) In paying any requisition under this Section 4.04, the Trustee shall be entitled to
conclusively rely as to the completeness and accuracy of all statements in such requisition upon
the approval of such requisition by an Authorized Company Representative, execution thereof to be
conclusive evidence of such approval, and the Company shall indemnify and save harmless the
Authority and the Trustee from any liability incurred in connection with any requisition so
executed by an Authorized Company Representative.

(c) The Company shall submit requisitions for Costs of Construction in compliance with the
requirements therefor contained in the Tax Agreement.

(d) The Company shall not submit or cause to be submitted to the Trustee any requisition
pursuant to this Section 4.04, and shall have no claim upon any moneys in the Construction Fund, so
long as there shall have occurred and be continuing any Event of Default described in Section 8.01
hereof.

SECTION 4.05 Investment of Moneys in Funds and Accounts. The Company and the Authority agree
that any moneys held in any fund or account created by the Indenture shall be invested as provided
in the Indenture.

ARTICLE V

LOAN PAYMENTS; OTHER OBLIGATIONS

SECTION 5.01 Loan Payments. In consideration of the issuance of the Bonds and the disposition
of the proceeds thereof as contemplated in Section 4.03 hereof, the Company shall pay, or cause to
be paid, to the Trustee for the account of the Authority an amount equal to the aggregate principal
amount of the Bonds from time to time Outstanding and, as interest on its obligation to pay such
amount, an amount equal to interest on such Bonds, such amounts to be paid in installments due on
the dates, in the amounts and in the manner provided in the Indenture for the Authority to cause
amounts to be deposited in the Bond Fund for the payment of the principal of and interest on the
Bonds whether at stated maturity, upon redemption or acceleration or otherwise; provided, however,
that the obligation of the Company to make any such payment hereunder shall be reduced by the
amount of any reduction under the Indenture of the amount of the corresponding payment required to
be made by the Authority thereunder.

SECTION 5.02 Payments Assigned; Obligation Absolute. It is understood and agreed that all
Loan Payments are, by the Indenture, to be pledged by the Authority to the Trustee, and that all
rights and interest of the Authority hereunder (except for the Authority’s rights under Section
5.03, Section 5.04, Section 6.03 and Section 8.05 hereof and any rights of the Authority to receive
notices, certificates, requests, requisitions and other communications hereunder) are to be pledged
and assigned to the Trustee. The Company assents to such pledge and assignment and agrees that the
obligation of the Company to make the Loan Payments shall be absolute, irrevocable and
unconditional and shall not be subject to cancellation, termination or abatement, or to any defense
other than

 

7

 

payment or to any right of set off, counterclaim or recoupment arising out of any breach by the Authority or the Trustee or any other party under this
Agreement, the Indenture or otherwise, or out of any obligation or liability at any time owing to
the Company by the Authority, the Trustee or any other party, and, further, that the Loan Payments
and the other payments due hereunder shall continue to be payable at the times and in the amounts
herein and therein specified, whether or not the Facilities, or any portion thereof, shall have
been completed or shall have been destroyed by fire or other casualty, or title thereto, or the use
thereof, shall have been taken by the exercise of the power of eminent domain, and that there shall
be no abatement of or diminution in any such payments by reason thereof, whether or not the
Facilities shall be used or useful, whether or not any applicable laws, regulations or standards
shall prevent or prohibit the use of the Facilities, or for any other reason, all of the foregoing
being subject, however, to the provisions of Section 6.01 and Section 7.01 hereof.

SECTION 5.03 Payment of Expenses. The Company shall pay, or, to the extent permitted by this
Agreement, cause to be paid out of the Construction Fund, all Administration Expenses, including,
without limitation, Administration Expenses incurred at and subsequent to the time the Bonds are
deemed to have been paid in accordance with Article VIII of the Indenture. The payment of the
compensation and the reimbursement of expenses and advances of the Trustee under the Indenture
shall be made directly to such entity.

SECTION 5.04 Indemnification. The Company releases the Authority, the Trustee, the County of
Pima, Arizona and their directors, officers, employees and agents from, agrees that the Authority,
the Trustee and the County of Pima, Arizona shall not be liable for, and agrees to indemnify and
hold the Authority, the Trustee, the County of Pima, Arizona and their directors, officers,
employees and agents free and harmless from, any liability (including, without limitation,
attorneys’ and other agents’ fees and expenses) for any loss or damage to property or any injury to
or death of any person that may be occasioned by any cause whatsoever pertaining to the Facilities,
except (i) in the case of the Trustee, as a result of the negligence or willful misconduct of the
Trustee or its directors, officers, employees and agents; and (ii) in the case of the Authority and
the County of Pima, Arizona, as a result of gross negligence or willful misconduct of the Authority
or the County of Pima, Arizona or their directors, officers, employees and agents.

The Company will indemnify and hold the Authority, the Trustee and the County of Pima,
Arizona, free and harmless from any loss, claim, damage, tax, penalty, liability, disbursement,
litigation expenses, attorneys’ and other agents’ fees and expenses or court costs arising out of,
or in any way relating to, the execution or performance of this Agreement, the issuance or sale of
the Bonds, actions taken under the Indenture or any other cause whatsoever pertaining to the
Facilities, except (i) in the case the Trustee, as a result of the negligence or willful misconduct
of the Trustee; and (ii) in the case of the Authority and the County of Pima, Arizona, as a result
of gross negligence or willful misconduct of the Authority or the County of Pima, Arizona.

The Company will indemnify and hold the Authority and the County of Pima, Arizona and their
directors, officers, employees and agents free and harmless from any loss, claim, damage, tax,
penalty, liability, disbursement, litigation expenses, attorney’s fees and expenses or court costs
arising out of or in any way relating to any untrue statement or alleged untrue
statement of any material fact or omission or alleged omission to state a material fact
necessary to make the statements made, in light of the circumstances under which they were made,
not misleading in any official statement or other offering material utilized in connection with the
sale of any Bonds.

 

8

 

SECTION 5.05 Payment of Taxes; Discharge of Liens. The Company shall: (a) pay, or make
provision for payment of, all lawful taxes and assessments, including income, profits, property or
excise taxes, if any, or other municipal or governmental charges, levied or assessed by any
federal, state or municipal government or political body upon the Facilities or any part thereof or
upon the Authority with respect to the Loan Payments, when the same shall become due; and (b) pay
or cause to be satisfied and discharged or make adequate provision to satisfy and discharge, within
sixty (60) days after the same shall accrue, any lien or charge upon the Loan Payments, and all
lawful claims or demands for labor, materials, supplies or other charges which, if unpaid, might be
or become a lien upon such amounts; provided, that, if the Company shall first notify the Authority
and the Trustee of its intention so to do, the Company may in good faith contest any such lien or
charge or claims or demands in appropriate legal proceedings, and in such event may permit the
items so contested and identified as such by the Company to remain undischarged and unsatisfied
during the period of such contest and any appeal therefrom, unless the Trustee shall notify the
Company in writing that, in the opinion of counsel to the Trustee, based upon material facts
disclosed to the Trustee without any duty of investigation, by nonpayment of any such items the
lien of the Indenture as to the Loan Payments will be materially endangered, in which event the
Company shall promptly pay and cause to be satisfied and discharged all such unpaid items. The
Authority shall cooperate fully with the Company in any such contest.

ARTICLE VI

SPECIAL COVENANTS

SECTION 6.01 Maintenance of Legal Existence. Except as permitted in this Section 6.01, the
Company shall maintain its legal existence, shall not sell, transfer or otherwise dispose of all of
its assets, as or substantially as an entirety, and shall not consolidate with or merge with or
into another entity. Unless such action would violate the Company’s covenant in Section 6.04, the
Company may consolidate with or merge into another entity organized and existing under the laws of
the United States of America, any state thereof or the District of Columbia, or sell, transfer or
otherwise dispose of all of its assets, as or substantially as an entirety, to any Person, if the
surviving or resulting Person (if other than the Company) or the transferee Person, as the case may
be, prior to or simultaneously with such merger, consolidation, sale, transfer or disposition,
assumes, by delivery to the Trustee and the Authority of an instrument in writing satisfactory in
form to the Trustee, all the obligations of the Company under this Agreement, including, without
limitation, the obligations of the Company under Section 5.01 hereof. Upon such an assumption
following any such sale, transfer or other disposition of assets, the Company shall be released and
discharged from all liability in respect of all obligations under this Agreement. Notwithstanding
the foregoing, in the case of any such sale, transfer or other disposition of assets, which do not
include the Facilities, the Company shall remain liable in respect of all obligations under this
Agreement other than the obligations under Section 5.01 hereof, and the transferee shall not be
required to assume any obligations hereunder other than
the obligations under Section 5.01 hereof; provided, however, that the transferee shall be
required to assume all such other obligations unless the Company shall have delivered to the
Authority and the Trustee an opinion of Bond Counsel to the effect that the non-assumption by the
transferee of such other obligations will not impair the validity under the Act of the Bonds and
will not adversely affect the exclusion from gross income for federal tax purposes of interest on
the Bonds.

 

9

 

If consolidation, merger or sale, transfer or other disposition is made as permitted by this
Section 6.01, the provisions of this Section 6.01 shall continue in full force and effect and no
further consolidation, merger or sale or other transfer shall be made except in compliance with the
provisions of this Section 6.01.

Anything in this Agreement to the contrary notwithstanding, the sale, transfer or other
disposition by the Company of all of its facilities (a) for the generation of electric energy, (b)
for the transmission of electric energy or (c) for the distribution of electric energy, in each
case considered alone, or all of its facilities described in clauses (a) and (b), considered
together, or all of its facilities described in clauses (b) and (c), considered together, shall in
no event be deemed to constitute a sale, transfer or other disposition of all the properties of the
Company, as or substantially as an entirety, unless, immediately following such sale, transfer or
other disposition, the Company shall own no properties in the other such categories of property not
so sold, transferred or otherwise disposed of. The character of particular facilities shall be
determined by reference to the Uniform System of Accounts prescribed for public utilities and
licensees subject to the Federal Power Act, as amended, to the extent applicable.

SECTION 6.02 Permits or Licenses. In the event that it may be necessary for the proper
performance of this Agreement on the part of the Company or the Authority that any application or
applications for any permit or license to do or to perform certain things be made to any
governmental or other agency by the Company or the Authority, the Company and the Authority each
shall, upon the request of either, execute such application or applications.

SECTION 6.03 Authority’s Access to Facilities. The Authority shall have the right, upon
appropriate prior notice to the Company, to have reasonable access to the Facilities during normal
business hours for the purpose of making examinations and inspections of the same.

SECTION 6.04 Tax-Exempt Status of Interest on Bonds.

(a) It is the intention of the parties hereto that interest on the Bonds shall be and remain
tax-exempt, and to that end the covenants and agreements of the Authority and the Company in this
Section 6.04 and the Tax Agreement are for the benefit of the Owners from time to time of the
Bonds.

 

10

 

(b) Each of the Company and the Authority covenants and agrees for the benefit of the Owners
from time to time of the Bonds that it will not directly or indirectly use or permit the use of (to
the extent within its control) the proceeds of any of the Bonds or any other funds, or take or omit
to take any action, if and to the extent such use, or the taking or omission to take such action,
would cause any of the Bonds to be “arbitrage bonds” within the meaning of Section 148 of the Code
or otherwise subject to federal income taxation by reason of failing to qualify under
Section 103 and Sections 141 through 150 of the Code and any applicable regulations
promulgated thereunder. To such ends, the Authority and the Company will comply with all
requirements of such Section 148 to the extent applicable to the Bonds. In the event that at any
time the Authority or the Company is of the opinion that for purposes of this Section 6.04(b) it is
necessary to restrict or limit the yield on the investment of any moneys held by the Trustee under
the Indenture, the Authority or the Company shall so notify the Trustee in writing.

Without limiting the generality of the foregoing, the Company and the Authority agree that
there shall be paid from time to time all amounts required to be rebated to the United States of
America pursuant to Section 148(f) of the Code and any applicable Treasury Regulations. This
covenant shall survive payment in full or defeasance of the Bonds and the satisfaction and
discharge of the Indenture. The Company specifically covenants to pay or cause to be paid the
Rebate Requirement as defined and described in the Tax Agreement.

(c) The Authority certifies and represents that it has not taken, and the Authority covenants
and agrees that it will not take, any action which results in interest paid on the Bonds being
included in gross income of the Owners of the Bonds for federal tax purposes pursuant to Section
1.03 of the Code, as applicable; and the Company certifies and represents that it has not taken or
(to the extent within its control) permitted to be taken, and the Company covenants and agrees that
it will not take or (to the extent within its control) permit to be taken any action which will
cause the interest on the Bonds to become includable in gross income for federal income tax
purposes pursuant to Section 1.03 of the Code; provided, however, that neither the Company nor the
Authority shall be deemed to have violated these covenants if the interest on any of the Bonds
becomes taxable to a person solely because such person is a “substantial user” of the Facilities or
a “related person” within the meaning of Section 147(a) of the Code and provided, further, that
none of the covenants and agreements herein contained shall require either the Company or the
Authority to enter an appearance or intervene in any administrative, legislative or judicial
proceeding in connection with any changes in applicable laws, rules or regulations or in connection
with any decisions of any court or administrative agency or other governmental body affecting the
taxation of interest on the Bonds. The Company acknowledges having read Section 7.08 of the
Indenture and agrees to perform all duties imposed on it by such Section 7.08, by this Section 6.04
and by the Tax Agreement. Insofar as Section 7.08 of the Indenture and the Tax Agreement, as
amended from time to time, impose duties and responsibilities on the Company, they are specifically
incorporated herein by reference.

(d) Notwithstanding any provision of this Section 6.04 and Section 7.08 of the Indenture, if
the Company shall provide to the Authority and the Trustee an opinion of Bond Counsel to the effect
that any specified action required under this Section 6.04 and Section 7.08 of the Indenture is no
longer required or that some further or different action is required to maintain the exclusion from
gross income of interest on the Bonds for federal income tax purposes, the Company, the Trustee and
the Authority may conclusively rely upon such opinion in complying with the requirements of this
Section 6.04, and the covenants hereunder shall be deemed to be modified to that extent.

SECTION 6.05 Use of Facilities. So long as any Bonds are Outstanding and the Facilities are
operated by or for the benefit of the Company, the Company shall cause the Facilities to be used
for purposes contemplated by the Act and in the Tax Agreement.

SECTION 6.06 Financing Statements. The Company shall file and record, or cause to be filed
and recorded, all financing statements and continuation statements referred to in Section 7.07 of
the Indenture.

 

11

 

ARTICLE VII

ASSIGNMENT, LEASING AND SELLING

SECTION 7.01 Conditions. The Company’s interest in this Agreement may be assigned as a whole
or in part, and its interest in the Facilities may be leased, sold, transferred or otherwise
disposed of by the Company as a whole or in part (whether an interest in a specific element or unit
or an undivided interest), to any Person; provided, however, that no such assignment, lease, sale,
transfer or other disposition (a) shall relieve the Company from its primary liability for its
obligations under Section 5.01 hereof or (b) shall be made unless the assignee, lessee, purchaser
or other transferee, as the case may be, prior to or simultaneously with such assignment, lease,
sale, transfer or other disposition, assumes, by delivery of an instrument in writing satisfactory
in form to the Trustee and the Authority, all other obligations of the Company hereunder to the
extent of the interest assigned, leased, sold, transferred or otherwise disposed of, and the
Company shall be released of and discharged from such obligations to the extent so assumed.
Notwithstanding the foregoing, (a) if (i) the Company’s interest in this Agreement shall be
assigned as a whole or in undivided part, (ii) the Company’s interest in the Facilities shall be
leased as a whole or in undivided part and the term of such leasehold or the term of any extension
or extensions thereof at the option of the Company shall extend beyond the maturity date of the
Bonds or (iii) the Company’s interest in the Facilities shall be sold, transferred or otherwise
disposed of as a whole or in undivided part, and (b) in the event that the assignee, lessee,
purchaser or other transferee shall assume the obligations of the Company under Section 5.01 hereof
for the remaining term of this Agreement, to the extent of such assignment, lease, sale, transfer
or other disposition, the Company shall be released from and discharged of all liability in respect
of such obligations to the extent so assumed (but only to such extent); provided, however, that the
release and discharge of the Company pursuant to clause (b) shall be conditioned upon the delivery
by the Company to the Authority and the Trustee of a certificate of an Independent Expert (as
hereinafter defined) describing the interests so assigned, leased, sold, transferred or otherwise
disposed of, together with all other rights, interests, assets and/or properties assigned, leased,
sold, transferred or otherwise disposed of by the Company to the same Person in the same or a
related transaction, stating that such rights, interests, assets and/or properties so described
constitute facilities for the generation, transmission and/or distribution of electric energy and
stating that, in the opinion of such Independent Expert, the Fair Value (as hereinafter defined) of
such rights, interests, assets and/or properties to the Person acquiring the same is not less than
an amount equal to 10/7 of the sum of (x) the aggregate principal amount of the Bonds then
Outstanding and (y) the outstanding principal amount of all other obligations of the Company
representing indebtedness for borrowed money or for the deferred purchase price of property which
are being assumed by such Person; provided, further, that after any such assumption, release and
discharge as aforesaid, the Company may again assume such obligations under Section 5.01 hereof, in
whole or in part, at any time and from time to time, and, to the extent of any such assumption by
the Company (but only to such extent), the aforesaid assignee, lessee, purchaser or other
transferee shall be released from and discharged of all liability in respect of such obligations.

 

12

 

Anything herein to the contrary notwithstanding, the Company shall not make any assignment,
lease or sale as provided in the immediately preceding paragraph unless it shall have furnished to
the Authority and the Trustee an opinion of Bond Counsel to the effect that the proposed
assignment, lease or sale will not impair the validity under the Act of the Bonds and will not
adversely affect the exclusion of interest on the Bonds from gross income for federal tax purposes.

After any lease, sale, transfer or other disposition of any element or unit of the Facilities,
or any interest therein, the Company may, at its option, cause such element or unit, or interest
therein, to no longer be deemed to be part of the Facilities for the purposes of this Agreement by
delivering to the Authority and the Trustee the agreements or other documents required pursuant to
Section 7.02 hereof together with an instrument signed by an Authorized Company Representative
stating that such element or unit, or interest therein, shall no longer be deemed to be part of the
Facilities for the purposes of this Agreement.

For purposes of this Section 7.01:

(a) “Independent Expert” means a Person which (i) is an engineer, appraiser or other
expert and which, with respect to any certificate to be delivered pursuant to this Section,
is qualified to pass upon the matter set forth in such certificate and (ii)(A) is in fact
independent, (B) does not have any direct material financial interest in the transferee or
in any obligor upon the Bonds or under this Agreement or in any affiliate of the transferee
or any such obligor, (C) is not connected with the transferee or any such obligor as an
officer, employee, promoter, underwriter, trustee, partner, director or any person
performing similar functions and (D) is approved by the Trustee in the exercise of
reasonable care; for purposes of this definition “engineer” means a Person engaged in the
engineering profession or otherwise qualified to pass upon engineering matters (including,
but not limited to, a Person licensed as a professional engineer, whether or not then
engaged in the engineering profession); and for purposes of this definition “appraiser”
means a Person engaged in the business of appraising property or otherwise qualified to pass
upon the Fair Value or fair market value of property.

(b) “Fair Value” means the fair value of the interests, rights, assets and/or
properties assigned, leased, sold, transferred or otherwise disposed of (but, in the case of
a lease, only to the extent of such lease) as may be determined by reference to (i) except
in the case of a lease, the amount which would be likely to be obtained in an arm’s-length
transaction with respect to such interests, rights, assets and/or properties between an
informed and willing buyer and an informed and willing seller, under no compulsion,
respectively, to buy or sell, (ii) in the case of a lease, the amount (discounted to present
value at a rate not lower than the taxable equivalent of the yield to maturity of the Bonds
based on prevailing market prices immediately prior to the first public announcement of the
proposed transaction) which would be likely to be obtained in an arm’s-length transaction
with respect to such interests, rights, assets and/or properties between an informed and
willing lessee and an informed and willing lessor, neither under any compulsion to lease;
(iii) the amount of investment with respect to such interests, rights, assets and/or
properties which, together with a reasonable return thereon, would be likely to be recovered
through ordinary business operations

 

13

 

or otherwise, (iv) the cost, accumulated depreciation and replacement cost with respect to such interests, rights,
assets and/or properties and/or (v) any other relevant factors; provided, however, that (x)
Fair Value shall be determined without deduction for any mortgage, deed of trust, pledge,
security interest, encumbrance, lease, reservation, restriction, servitude, charge or
similar right or any other lien of any kind and (y) the Fair Value to the transferee of any
property shall not reflect any reduction relating to the fact that such property may be of
less value to a Person which is not the owner, lessee or operator of the property or any
portion thereof than to a Person which is such owner, lessee or operator. Fair Value may be
determined, without physical inspection, by the use of accounting and engineering records
and other data maintained by the Company or the transferee or otherwise available to the
Independent Expert certifying the same.

SECTION 7.02 Instrument Furnished to the Authority and Trustee. The Company shall, within
fifteen (15) days after the delivery thereof, furnish to the Authority and the Trustee a true and
complete copy of the agreements or other documents effectuating any such assignment, lease, sale,
transfer or other disposition.

SECTION 7.03 Limitation. This Agreement shall not be assigned nor shall the Facilities be
leased, sold, transferred or otherwise disposed of, in whole or in part, except as provided in this
ARTICLE VII or in Section 6.01 or Section 5.02 hereof. This ARTICLE VII shall not apply to any
sale, transfer or other disposition by the Company of all of its assets, as or substantially as an
entirety, as contemplated in Section 6.01.

ARTICLE VIII

EVENTS OF DEFAULT AND REMEDIES

SECTION 8.01 Events of Default. Each of the following events shall constitute and is referred
to in this Agreement as an “Event of Default”:

(a) a failure by the Company to make any Loan Payment, which failure shall have
resulted in an “Event of Default” under clause (a) or (b) of Section 9.01 of the Indenture;

(b) a failure by the Company to pay when due any amount required to be paid under this
Agreement or to observe and perform any covenant, condition or agreement on its part to be
observed or performed (other than a failure described in clause (a) above), which failure
shall continue for a period of sixty (60) days after written notice, specifying such failure
and requesting that it be remedied, shall have been given to the Company by the Authority or
the Trustee, unless the Authority and the Trustee shall agree in writing to an extension of
such period prior to its expiration; provided, however, that the Authority and the Trustee
shall be deemed to have agreed to an extension of such period if corrective action is
initiated by the Company within such period and is being diligently pursued; or

 

14

 

(c) the dissolution or liquidation of the Company, or failure by the Company promptly
to lift any execution, garnishment or attachment of such consequence as will
impair its ability to make any payments under this Agreement, or the entry of an order
for relief by a court of competent jurisdiction in any proceeding for its liquidation or
reorganization under the provisions of any bankruptcy act or under any similar act which may
be hereafter enacted, or an assignment by the Company for the benefit of its creditors, or
the entry by the Company into an agreement of composition with its creditors (the term
“dissolution or liquidation of the Company,” as used in this clause, shall not be construed
to include the cessation of the corporate existence of the Company resulting either from a
merger or consolidation of the Company into or with another entity or a dissolution or
liquidation of the Company following a transfer of all or substantially all its assets as an
entirety, under the conditions permitting such actions contained in Section 6.01 hereof).

SECTION 8.02 Force Majeure. The provisions of Section 8.01 hereof are subject to the
following limitations: if by reason of acts of God; strikes, lockouts or other industrial
disturbances; acts of public enemies; orders of any kind of the government of the United States or
of the State of Arizona, or any department, agency, political subdivision, court or official of any
of them, or any civil or military authority; insurrections; riots; epidemics; landslides;
lightning; earthquakes; volcanoes; fires; hurricanes; tornadoes; storms; floods; washouts;
droughts; arrests; restraint of government and people; civil disturbances; explosions; breakage or
accident to machinery; partial or entire failure of utilities; or any cause or event not reasonably
within the control of the Company, the Company is unable in whole or in part to carry out any one
or more of its agreements or obligations contained herein, other than its obligations under Section
5.01, Section 5.03, Section 5.05 and Section 6.01 hereof, the Company shall not be deemed in
default by reason of not carrying out said agreement or agreements or performing said obligation or
obligations during the continuance of such inability. The Company shall make reasonable effort to
remedy with all reasonable dispatch the cause or causes preventing it from carrying out its
agreements; provided, that the settlement of strikes, lockouts and other industrial disturbances
shall be entirely within the discretion of the Company, and the Company shall not be required to
make settlement of strikes, lockouts and other industrial disturbances by acceding to the demands
of the opposing party or parties when such course is in the judgment of the Company unfavorable to
the Company.

SECTION 8.03 Remedies. (a) Upon the occurrence and continuance of any Event of Default
described in clause (a) of Section 8.01 hereof, and further upon the condition that, in accordance
with the terms of the Indenture, the Bonds shall have been declared to be immediately due and
payable pursuant to any provision of the Indenture, the Loan Payments shall, without further
action, become and be immediately due and payable.

Any waiver of any “Event of Default” under the Indenture and a rescission and annulment of its
consequences shall constitute a waiver of the corresponding Event or Events of Default under this
Agreement and a rescission and annulment of the consequences thereof.

(b) Upon the occurrence and continuance of any Event of Default, the Authority, or the
Trustee with respect to the rights of the Authority assigned to the Trustee by the Indenture, may
take any action at law or in equity to collect any payments then due and thereafter to become due,
or to enforce performance and observance of any obligation, agreement or covenant of the Company
hereunder.

(c) Any amounts collected by the Trustee from the Company pursuant to this Section 8.03 shall
be applied in accordance with the Indenture.

 

15

 

SECTION 8.04 No Remedy Exclusive. No remedy conferred upon or reserved to the Authority
hereby is intended to be exclusive of any other available remedy or remedies, but each and every
such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or
now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any
right or power accruing upon any default shall impair any such right or power or shall be construed
to be a waiver thereof, but any such right or power may be exercised from time to time and as often
as may be deemed expedient. In order to entitle the Authority to exercise any remedy reserved to
it in this ARTICLE VIII, it shall not be necessary to give any notice, other than such notice as
may be herein expressly required.

SECTION 8.05 Reimbursement of Attorneys’ and Agents’ Fees. If the Company shall default under
any of the provisions hereof and the Authority or the Trustee shall employ attorneys or agents or
incur other reasonable expenses for the collection of payments due hereunder or for the enforcement
of performance or observance of any obligation or agreement on the part of the Company contained
herein, the Company will on demand therefor reimburse the Authority or the Trustee and any
predecessor Trustee, as the case may be, for the reasonable fees of such attorneys and such other
reasonable expenses so incurred.

SECTION 8.06 Waiver of Breach. In the event any obligation created hereby shall be breached
by either of the parties and such breach shall thereafter be waived by the other party, such waiver
shall be limited to the particular breach so waived and shall not be deemed to waive any other
breach hereunder. In view of the assignment of certain of the Authority’s rights and interest
hereunder to the Trustee, the Authority shall have no power to waive any breach hereunder by the
Company in respect of such rights and interest without the consent of the Trustee, and the Trustee
may exercise any of such rights of the Authority hereunder.

ARTICLE IX

REDEMPTION OF BONDS

SECTION 9.01 Redemption of Bonds. The Authority shall take, or cause to be taken, the actions
required by the Indenture to discharge the lien created thereby through the redemption, or
provision for payment or redemption, of all Bonds then Outstanding, or to effect the redemption, or
provision for payment or redemption, of less than all the Bonds then Outstanding, upon receipt by
the Authority and the Trustee from the Company of a notice designating the principal amount of the
Bonds to be redeemed, or for the payment or redemption of which provision is to be made, and, in
the case of redemption of Bonds, or provision therefor, specifying the date of redemption and the
applicable redemption provision of the Indenture. Such redemption date shall not be less than
twenty-five (25) days from the date such notice is given (unless a shorter notice is satisfactory
to the Trustee). Unless otherwise stated therein, such notice shall be revocable by the Company at
any time prior to the time at which the Bonds to be redeemed, or for the payment or redemption of
which provision is to be made, are first deemed to be paid in accordance with Article VIII of the
Indenture. The Company shall furnish any moneys or Government Obligations (as defined in the
Indenture) required by the Indenture to be deposited
with the Trustee or otherwise paid by the Authority in connection with any of the foregoing
purposes.

 

16

 

SECTION 9.02 Compliance with the Indenture. Anything in this Agreement to the contrary
notwithstanding, the Authority and the Company shall take all actions required by this Agreement
and the Indenture in order to comply with any provisions of the Indenture requiring the mandatory
redemption of Bonds.

ARTICLE X

MISCELLANEOUS

SECTION 10.01 Term of Agreement. This Agreement shall remain in full force and effect from
the date hereof until the right, title and interest of the Trustee in and to the Trust Estate (as
defined in the Indenture) shall have ceased, terminated and become void in accordance with Article
VIII of the Indenture and until all payments required under this Agreement shall have been made.
Notwithstanding the foregoing, the covenants contained in Section 5.03, Section 5.04, Section 6.04
and Section 8.05 hereof shall survive the termination of this Agreement.

SECTION 10.02 Notices. Except as otherwise provided in this Agreement, all notices,
certificates, requests, requisitions and other communications hereunder shall be in writing and
shall be sufficiently given and shall be deemed given when mailed by registered mail, postage
prepaid, addressed as follows: if to the Authority, c/o Russo, Russo & Slania, P.C., 6700 North
Oracle Road, Suite 100, Tucson, Arizona 85704; if to the Company, at One South Church Avenue, Suite
100, Tucson, Arizona 85701, Attention: Treasurer; and if to the Trustee, at such address as shall
be designated by it in the Indenture. A copy of each notice, certificate, request or other
communication given hereunder to the Authority, the Company, or the Trustee shall also be given to
the others. The Authority, the Company, and the Trustee may, by notice given hereunder, designate
any further or different addresses to which subsequent notices, certificates, requests or other
communications shall be sent. Notwithstanding any other provision of this Agreement to the
contrary, any notice required to be delivered hereunder may be delivered by electronic means
including, without limitation, email in PDF format.

SECTION 10.03 Parties in Interest. This Agreement shall inure to the benefit of and shall be
binding upon the Authority, the Company and their respective successors and assigns, and no other
person, firm or corporation shall have any right, remedy or claim under or by reason of this
Agreement; provided, however, that the lien and security interest granted to the Trustee in Section
4.03 hereof, as well as the rights and remedies granted to the Authority in Article VIII hereof,
shall inure to the benefit of the Trustee, on behalf of the Owners from time to time of the Bonds,
and shall be enforceable by the Trustee as a third party beneficiary or as assignee of the
Authority; and provided, further, that neither Pima County, Arizona nor the State of Arizona shall
in any event be liable for the payment of the principal of or premium, if any, or interest on the
Bonds or for the performance of any pledge, mortgage, obligation or agreement created by or arising
out of this Agreement or the issuance of the Bonds, and further that neither the Bonds nor any such
obligation or agreement of the Authority shall be construed to constitute an indebtedness of Pima
County, Arizona or the State of Arizona within the meaning of any
constitutional or statutory provisions whatsoever, but shall be limited obligations of the
Authority payable solely out of the revenues derived from this Agreement, or from the sale of the
Bonds, or from the investment or reinvestment of any of the foregoing, as provided herein and in
the Indenture.

 

17

 

SECTION 10.04 Amendments. This Agreement may be amended only by written agreement of the
parties hereto, subject to the limitations set forth herein and in the Indenture.

SECTION 10.05 Counterparts. This Agreement may be executed in any number of counterparts,
each of which, when so executed and delivered, shall be an original; but such counterparts shall
together constitute but one and the same Agreement.

SECTION 10.06 Severability. If any clause, provision or section of this Agreement shall, for
any reason, be held illegal or invalid by any court, the illegality or invalidity of such clause,
provision or section shall not affect any of the remaining clauses, provisions or sections hereof,
and this Agreement shall be construed and enforced as if such illegal or invalid clause, provision
or section had not been contained herein. In case any agreement or obligation contained in this
Agreement be held to be in violation of law, then such agreement or obligation shall be deemed to
be the agreement or obligation of the Authority or the Company, as the case may be, to the full
extent permitted by law.

SECTION 10.07 Governing Law. The laws of the State of Arizona shall govern the construction
and enforcement of this Agreement, except that the provisions of Section 13.09 of the Indenture,
construed as provided in Section 13.07 of the Indenture, shall apply to this Agreement as if
contained herein.

SECTION 10.08 Notice Regarding Cancellation of Contracts. As required by the provisions of
Section 38-511, Arizona Revised Statutes, as amended, notice is hereby given that political
subdivisions of the State of Arizona or any of their departments or agencies may, within three (3)
years of its execution, cancel any contract, without penalty or further obligation, made by the
political subdivisions or any of their departments or agencies on or after September 30, 1988, if
any person significantly involved in initiating, negotiating, securing, drafting or creating the
contract on behalf of the political subdivisions or any of their departments or agencies is, at any
time while the contract or any extension of the contract is in effect, an employee or agent of any
other party to the contract in any capacity or a consultant to any other party of the contract with
respect to the subject matter of the contract. The cancellation shall be effective when written
notice from the chief executive officer or governing body of the political subdivision is received
by all other parties to the contract unless the notice specifies a later time.

The Company covenants and agrees not to employ as an employee, agent or, with respect to the
subject matter of this Agreement, a consultant, any person significantly involved in initiating,
negotiating, securing, drafting or creating such Agreement on behalf of the Authority within three
(3) years from the execution hereof, unless a waiver is provided by the Authority.

[Remainder of Page Intentionally Left Blank]

 

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

	 	 	 	 	 	 	 	 	 
	 	 	THE INDUSTRIAL DEVELOPMENT AUTHORITY	 	 
	 	 	OF THE COUNTY OF PIMA	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Stanley Lehman	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Stanley Lehman	 	 
	 

	 	 	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	TUCSON ELECTRIC POWER COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Kentton C. Grant	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Kentton C. Grant	 	 
	 

	 	 	 	Title:
	 	Vice President and Treasurer	 	 

Signature Page to Loan Agreement

 

 

 

EXHIBIT A

A portion of the costs of the acquisition, construction, improvement or equipping of the
following Facilities will be financed with the proceeds of The Industrial Development Authority of
the County of Pima Industrial Development Revenue Bonds, 2010 Series A (Tucson Electric Power
Company Project) issued by The Industrial Development Authority of the County of Pima and referred
to in the foregoing Loan Agreement.

 

Certain additions and improvements to Tucson Electric Power Company’s lower voltage electric
transmission and distribution system in the City of Tucson and environs in Pima County, more
particularly described in the Tax Certificate and Agreement, dated October 5, 2010, between The
Industrial Development Authority of the County of Pima and Tucson Electric Power Company.

 

A-1exv4w8

Exhibit 4.8

AMERICAN INTERNATIONAL GROUP, INC.

$1,960,000,000 5.67% Series B-1 Junior Subordinated Debentures

$1,960,000,000 5.82% Series B-2 Junior Subordinated Debentures

$1,960,000,000 5.89% Series B-3 Junior Subordinated Debentures

Remarketing Agreement

May 16, 2008

Citigroup Global Markets Inc.

388 Greenwich Street

New York, NY 10013

J.P. Morgan Securities Inc.

277 Park Avenue

New York, New York 10172

The Bank of New York, as Purchase Contract Agent

101 Barclay Street, Floor 8W

New York, NY 10286

Attention: Corporate Trust Division – Corporate Finance Unit

Ladies and Gentlemen:

     This Agreement (“Agreement”) is entered into among American International Group, Inc., a
Delaware corporation (the “Company”), Citigroup Global Markets Inc. (“Citigroup”), J.P. Morgan
Securities Inc. (“JPMorgan”), and The Bank of New York, a New York banking corporation, not
individually, but solely as Purchase Contract Agent (the “Purchase Contract Agent”) and as
attorney-in-fact of the holders of Stock Purchase Contracts (as defined in the Purchase Contract
Agreement referred to below) relating to the appointment of Citigroup and JPMorgan to serve as
remarketing agents (each, a “Remarketing Agent”) with respect to the remarketing of the Debentures
identified herein (the “Remarketing”).

     The Company will issue its 5.67% Series B-1 Junior Subordinated Debentures (the “Series B-1
Debentures”), 5.82% Series B-2 Junior Subordinated Debentures (the “Series B-2 Debentures”) and
5.89% Series B-3 Junior Subordinated Debentures (the “Series B-3 Debentures” and, together with the
Series B-1 Debentures and the Series B-2 Debentures, “Debentures”) under the Junior Subordinated
Debt Indenture, dated as of March 13, 2007 (“Base Indenture”), between the Company and The Bank of
New York, as Trustee (the “Trustee”), as amended and supplemented by the Sixth, Seventh, and Eighth
Supplemental Indentures, each dated as of May 16, 2008, between the Company and the Trustee (each,
a “Supplemental Indenture,” collectively, the “Supplemental Indentures” and, together with the Base
Indenture, “Indenture”).

 

 

     The Company has also entered into: (i) a Purchase Contract Agreement, dated as of May 16, 2008
(the “Purchase Contract Agreement”), between the Company and the Purchase Contract Agent pursuant
to which the Company will issue Equity Units (as defined therein); (ii) a Pledge Agreement, dated
as of May 16, 2008 (the “Pledge Agreement”), among the Company, the Purchase Contract Agent and
Wilmington Trust Company, as Collateral Agent, Custodial Agent and Securities Intermediary, to
secure the holders’ obligations to purchase shares of the Company’s common stock in accordance with
the Stock Purchase Contracts and the Purchase Contract Agreement; and (iii) an Underwriting
Agreement, dated May 12, 2008 (the “Underwriting Agreement”), among the Company, Citigroup and
JPMorgan, as Representatives of the several underwriters named therein;

     The terms and conditions under which the Remarketing will occur are provided for in the
Indenture, the Pledge Agreement and the Purchase Contract Agreement (the “Related Agreements”) and
are provided for herein.

     SECTION 1. Definitions. Except as otherwise defined in this Agreement, capitalized
terms used and not defined in this Agreement shall have the meanings set forth in the Indenture,
the Pledge Agreement, the Purchase Contract Agreement or the Underwriting Agreement, as the case
may be.

     SECTION 2. Appointment and Obligations of Remarketing Agent.

     (a) The Company hereby appoints each of Citigroup and JPMorgan as a remarketing agent,
and Citigroup and JPMorgan each hereby accepts such appointment, for the purpose of (i)
Remarketing the Debentures on behalf of the holders thereof and (ii) performing such other
duties as are assigned to it as Remarketing Agent in the procedures set forth herein and in
the Related Agreements.

     (b) Each Remarketing Agent shall use its commercially reasonable efforts to remarket
the (i) Debentures underlying the Pledged Debentures and (ii) Separate Debentures of the
Holders of Separate Debentures, if any, who have elected to have their Separate Debentures
remarketed in such Remarketing pursuant to the terms of the Purchase Contract Agreement,
each as identified to the Remarketing Agent by the Purchase Contract Agent and the Custodial
Agent by the close of business on the second Business Day immediately preceding the
applicable Remarketing Period Start Date (the “Remarketed Debentures”), commencing on the
applicable Remarketing Period Start Date, to obtain a price that results in proceeds, net of
the Remarketing Agents’ Fee set forth in Section 4, at least equal to 100% of the sum of the
Treasury Portfolio Purchase Price and the Separate Debentures Purchase Price (the
“Remarketing Price”).

     (c) Each Remarketing Agent agrees to (i) determine, in consultation with the Company,
in the manner provided for herein and in the Purchase Contract Agreement and the applicable
Supplemental Indenture, the Reset Rate or Reset Spread for the Debentures, (ii) consult with
the Company regarding the Company’s election whether to modify the maturity date or
redemption provisions of the Debentures, and (iii) perform such other duties as are assigned
to the Remarketing Agent in the Related Agreements.

-2-

 

     (d) The Remarketing Agents shall, if required by the Act or the rules and regulations
promulgated thereunder, deliver to each purchaser a Prospectus (or issue a notice referred
to in Rule 173(a) under the Act) in connection with the Remarketing.

     (e) Each Remarketing Agent agrees to conduct each Remarketing in accordance with this
Agreement and with the terms and conditions of the Related Agreements.

     (f) The Remarketing Agents shall not have any obligation whatsoever to purchase any
Remarketed Debentures, whether in the Remarketing or otherwise, and shall in no way be
obligated to provide funds to make payment upon tender of Debentures for Remarketing. The
Company shall similarly not be obligated in any case to provide funds to make payment upon
tender of the Debentures for Remarketing.

     SECTION 3. Representations and Warranties of the Company. The Company represents and
warrants to each Remarketing Agent (i) on and as of the first day of the applicable Remarketing
Period, to the extent that the Company has not elected to postpone the Remarketing (the
“Commencement Date”), (ii) at the first time of sale of Remarketed Debentures during the applicable
Remarketing Period (the “Pricing Date”) and (iii) on and as of the Remarketing Settlement Date, in
each case, to the extent such representations and warranties are applicable as of such date.

     (a) This Agreement has been duly authorized, executed and delivered by the Company;

     (b) The Company has been duly incorporated and is an existing corporation in good
standing and has full power and authority necessary to perform its obligations under this
Agreement.

     (c) Since the date of the latest audited financial statements incorporated by reference
in the Prospectus (as defined below) as amended or supplemented there has not been (i) any
material change in the capital stock (other than as occasioned by Common Stock having been
issued pursuant to the Company’s employee stock purchase plans, equity incentive plans and
upon conversion of convertible securities, or repurchased by the Company pursuant to any
previously announced stock repurchase program), or (ii) any material adverse change in or
affecting the financial position, shareholders’ equity or results of operations of the
Company and its consolidated subsidiaries considered as an entirety, in each case, otherwise
than as set forth or contemplated in such Prospectus (as defined below) as amended or
supplemented (any such change described in clause (ii) is referred to as a “Material Adverse
Change”);

     (d) The Remarketed Debentures have been duly authorized, and when duly executed,
authenticated, issued and delivered in accordance with the Indenture, will constitute valid
and legally binding obligations of the Company entitled to the benefits provided by the
Indenture, subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting creditors’
rights and to general equity principles; the Indenture has been duly authorized and
qualified under the Trust Indenture Act and constitutes a valid and legally

-3-

 

binding instrument, enforceable against the Company in accordance with its terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors’ rights and to
general equity principles; and the Indenture conforms, and the Remarketed Debentures will
conform, in all material respects to the descriptions thereof contained in the Pricing
Disclosure Package (as defined below) and in the Prospectus;

     (e) The issue and sale of the Remarketed Debentures and the compliance by the Company
with all of the provisions of the Remarketed Debentures, the Indenture and this Agreement,
and the consummation of the transactions herein and therein contemplated, will not conflict
with or result in a breach of any of the terms or provisions of, or constitute a default
under, any indenture, mortgage, deed of trust, loan agreement or other material agreement or
instrument to which the Company is a party or by which the Company is bound or to which any
of the property or assets of the Company is subject, or result in any violation of any
statute or any order, rule or regulation of any court or governmental agency or body having
jurisdiction over the Company or any of its properties, except, in each case, for such
conflicts, breaches, defaults and violations that would not have a material adverse effect
on the business, financial position, shareholders’ equity or results of operations of the
Company and its subsidiaries considered as an entirety (a “Material Adverse Effect”) or
affect the validity of the Remarketed Debentures, nor will such action result in any
violation of the provisions of the Company’s Restated Certificate of Incorporation, as
amended, or the By-Laws of the Company; and no consent, approval, authorization, order,
registration or qualification of or with any court or governmental agency or body is
required by the Company for the issue and sale of the Remarketed Debentures or the
consummation by the Company of the transactions contemplated by this Agreement or the
Indenture, except such consents, approvals, authorizations, orders, registrations or
qualifications the failure to obtain or make would not have a Material Adverse Effect or
affect the validity of the Remarketed Debentures, and such consents, approvals,
authorizations, orders, registrations or qualifications as have been, or will have been
prior to the applicable Remarketing Settlement Date, obtained under the Act or the Trust
Indenture Act and such consents, approvals, authorizations, orders, registrations or
qualifications as may be required under state securities or Blue Sky laws (including
insurance laws of any state relating to offers and sales of securities in such state) in
connection with the purchase and distribution of the Remarked Debentures by the Remarking
Agents; and

     (f) There is no action, suit or proceeding pending, or to the knowledge of the
executive officers of the Company, threatened against the Company or any of its
subsidiaries, which has, or may reasonably be expected in the future to have, a Material
Adverse Effect, except as set forth or contemplated in the Pricing Disclosure Package.

     (g) Each of the representations and warranties of the Company as set forth in Section
1(a)-(e) of the Underwriting Agreement is true and correct in all material respects;
provided that for purposes of this Section 3 and Sections 5, 6 and 7 hereof, any reference
in such section of the Underwriting Agreement to (i) the “Underwriter” or “Underwriters” or
the “Representative” or “Representatives” shall be deemed to refer to the Remarketing
Agents, (ii) the “Offered Securities”, “Component Securities” and

-4-

 

“Debentures” shall be deemed to refer to the Remarketed Debentures, (iii) the
“Registration Statement”, the “Basic Prospectus”, the “Preliminary Prospectus”, the “Pricing
Prospectus”,“Prospectus”,“Pricing Disclosure Package” and the “Issuer Free Writing
Prospectus” shall be deemed to refer to such terms as they relate to filings made in
connection with the Remarketed Debentures, (iv) “Applicable Time” shall be deemed to refer
to the time immediately prior to the time of the first sale of Remarketed Debentures to
investors during the applicable Remarketing Period, (v) “this Agreement”, hereof”, “herein”
and all references of similar import, shall be deemed to mean and refer to this Remarketing
Agreement and (vi) “the date hereof”, “the date of this Agreement” and all similar
references shall be deemed to refer to the applicable Commencement Date and the applicable
Pricing Date.

     SECTION 4. Fees.

     (a) On each Successful Remarketing of the Remarketed Debentures, the Company shall pay,
or cause to be paid out of the proceeds of the Remarketing, the Remarketing Agents an
aggregate remarketing fee equal to 0.25% of the sum of the Treasury Portfolio Purchase Price
and the Separate Debentures Purchase Price (the “Remarketing Fee”). Unless otherwise
notified by the Remarketing Agents, the Remarketing Fee will be split evenly between the
Remarketing Agents and shall be paid on the applicable Remarketing Settlement Date by wire
transfer of immediately available funds to accounts designated by each Remarketing Agent.

     (b) The Company agrees to pay (i) the costs incident to the preparation and filing of
any Registration Statements and any amendments thereto required in connection with this
Agreement; (ii) the costs incident to the preparation, printing, and distribution of any
Prospectus (preliminary or final) and any supplements thereto required in connection with
this Agreement; (iii) the cost of printing, word-processing or reproducing this Agreement,
any Blue Sky and Legal Investment Memoranda and any other documents in connection with the
offering, purchase, sale and delivery of the Remarketed Debentures; (iii) all expenses in
connection with the qualification of the Remarketed Debentures for offering and sale under
state securities laws as provided in Section 5(h) hereof; (iv) any filing fees incident to
any required review and clearance by the Financial Industry Regulatory Authority of the
terms of the sale of the Remarketed Debentures; and (vii) the reasonable out-of-pocket fees
and expenses of the Remarketing Agents incident to the performance of their obligations
hereunder which are not otherwise specifically provided for in this Section 4(b).

     SECTION 5. Covenants of the Company. The Company covenants and agrees as follows:

     (a) The Company shall prepare the Registration Statement, the Preliminary Prospectus
and the Prospectus, shall file any such Preliminary Prospectus and the Prospectus pursuant
to the Act within the period required by the Act and the rules and regulations thereunder
and shall use its commercially reasonable best efforts to cause the Registration Statement
to be declared effective by the Commission prior to the second Business Day immediately
preceding the First Remarketing Period Start Date and to

-5-

 

remain effective until the earlier of the Third Remarketing Settlement Date and the
Third Stock Purchase Date.

     (b) From the applicable Commencement Date through the applicable Remarketing Settlement
Date, the Company shall promptly notify the Remarketing Agent in writing of any proposal to
amend or supplement the Registration Statement or any Prospectus at any time, and shall also
promptly file with the Commission any amendment to the Registration Statement or any
Prospectus or any supplement to any Prospectus that may, in the reasonable judgment of the
Company, be required by the Act or requested by the Commission.

     (c) The Company shall file promptly all reports and any definitive proxy or information
statements required to be filed by the Company with the Commission pursuant to
Section 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to the date of the
Prospectus and for so long as the delivery of a Prospectus is required in connection with
the offering or sale of the Remarketed Debentures.

     (d) The Company shall file all Issuer Free Writing Prospectuses required to be filed by
the Company with the Commission pursuant to Rule 433(d) under the Act.

     (e) The Company shall advise in writing the Remarketing Agent, promptly after it
receives notice thereof, of (i) the issuance by the Commission of any stop order or of any
order preventing or suspending the use of the Prospectus or any Preliminary Prospectus, of
the suspension of the qualification of any of the Remarketed Debentures for offering or sale
in any jurisdiction, of the initiation or threatening of any proceeding for any such
purpose, or of any request by the Commission for the amending or supplementing of the
Registration Statement or the Prospectus or any Preliminary Prospectus or for additional
information, and (ii) the receipt by the Company of any notification with respect to the
suspension of the qualification of the Remarketed Debentures in any jurisdiction or the
institution or threatening of any proceedings for such purpose; and, in the event of the
issuance of any stop order or of any order preventing or suspending the use of the
Prospectus, or any Preliminary Prospectus, or suspending any such qualification as described
in (i) and (ii), to use promptly its commercially reasonable best efforts to obtain its
withdrawal.

     (f) The Company shall furnish promptly to the Remarketing Agents such copies of the
following documents as the Remarketing Agents shall reasonably request: (A) conformed
copies of the Registration Statement as originally filed with the Commission and each
amendment thereto (in each case excluding exhibits); (B) the Prospectus and any amendments
or supplements thereto; and (C) any document, consent or certificate incorporated by
reference in the Prospectus (excluding exhibits thereto); and, if at any time when delivery
of a prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Act) is
required in connection with the Remarketing, any event shall have occurred as a result of
which the Prospectus, as then amended or supplemented would include any untrue statement of
a material fact or omit to state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made when such Prospectus
(or in lieu thereof, the notice referred to in

-6-

 

Rule 173(a) under the Act) is delivered, not misleading, or if for any other reason it
shall be necessary during such same period to amend or supplement the Prospectus, or to file
under the Exchange Act any document incorporated by reference in the Prospectus, in order to
comply with the Act or the Exchange Act, to notify the Remarketing Agents and, upon its
request, to file such document and to prepare and furnish without charge to the Remarketing
Agents and to any dealer in securities as many copies as the Remarketing Agents may from
time to time reasonably request of an amended or supplemented Prospectus that will correct
such statement or omission or effect such compliance.

     (g) The Company will timely file all reports required to be filed under the Exchange
Act as necessary in order to make generally available to its securityholders an earning
statement satisfying the provisions of Section 11(a) of the Act and Rule 158 promulgated
thereunder with respect to each Remarketing Settlement Date.

     (h) The Company shall take such action as either Remarketing Agent may reasonably
request in order to qualify the Remarketed Debentures for offer and sale under the
securities or “blue sky” laws of such jurisdictions as either Remarketing Agent may
reasonably request; provided that in no event shall the Company be required to qualify as a
foreign corporation or to file a general consent to service of process in any jurisdiction.

     (i) The Company shall furnish the Remarketing Agents with such information and
documents as the Remarketing Agents may reasonably request in connection with the
transactions contemplated hereby, and make reasonably available to the Remarketing Agents
and any accountant, attorney or other advisor retained by the Remarketing Agents such
information that parties would customarily require in connection with a due diligence
investigation conducted in accordance with applicable securities laws and use reasonable
best efforts to cause the Company’s officers, directors, employees and accountants to
participate, upon reasonable notice and for a reasonable period of time, in such discussions
at times reasonably agreed upon and to supply all such information reasonably requested by
either Remarketing Agent in connection with such investigation.

     (j) At the written request of both the Remarketing Agents, between the applicable
Commencement Date and the applicable Remarketing Settlement Date, the Company will not,
without the prior written consent of both Remarketing Agents, directly or indirectly, issue,
sell, offer or contract to sell, grant any option for the sale of, or otherwise dispose of,
debt securities substantially similar to the Remarketed Debentures in a benchmark size.

     (k) The Company represents and agrees that, unless it obtains the prior consent of each
Remarketing Agent, and each Remarketing Agent represents and agrees that, unless it obtains
the prior consent of the Company, it has not made and will not make any offer relating to
the Remarketed Debentures that would constitute an Issuer Free Writing Prospectus, or that
would otherwise constitute a “free writing prospectus,” as defined in Rule 405 of the Act,
required to be filed with the Commission. Any such free writing prospectus consented to in
writing by the Company and each Remarketing Agent is hereinafter referred to as a “Permitted
Free Writing Prospectus.” The Company represents that it has treated and agrees that it
will treat each Permitted Free Writing

-7-

 

Prospectus as an “issuer free writing prospectus,” as defined in Rule 433 of the
Act, and has complied and will comply with the requirements of Rules 164 and 433 of the Act
applicable to any Permitted Free Writing Prospectus, including timely Commission filing
where required, legending and record keeping.

     (l) The Company will prepare a final term sheet relating to the Remarketed Debentures,
containing only information that describes the final terms of the Remarketed Debentures
after providing the Remarketing Agents and their legal counsel with a reasonable opportunity
to review and comment on such final term sheet (such final term sheet to be in form and
substance as last reviewed by the Remarketing Agents and the Company), and will file such
final term sheet within the period required by Rule 433(d) of the Act following the date
such final terms have been established for the Remarketed Debentures. Any such final term
sheet is an Issuer Free Writing Prospectus and a Permitted Free Writing Prospectus for
purposes of this Agreement.

     SECTION 6. Conditions to the Remarketing Agent’s Obligation. The obligations of the
Remarketing Agents hereunder shall be subject to the accuracy, in all material respects, of the
representations and warranties of the Company herein (as though made on the applicable Remarketing
Settlement Date), to the performance, in all material respects, by the Company of its obligations
and to the following additional conditions:

     (a) Subsequent to the applicable Pricing Date and prior to the related Remarketing
Settlement Date, there shall not have occurred any of the following: (i) a suspension or
material limitation in trading in securities generally on the New York Stock Exchange if the
effect of any such event, in the reasonable judgment of the Remarketing Agents, is to make
it impracticable or inadvisable to proceed with the Remarketing of the Debentures; (ii) a
general moratorium on commercial banking activities in New York declared by either Federal
or New York State authorities; (iii) the outbreak or escalation of hostilities involving the
United States or the declaration by the United States of a national emergency or war, other
than any such outbreak, escalation or declaration arising out of or relating to the U.S. war
on terrorism that does not represent a significant departure from the conditions that exist
at the Pricing Date, if the effect of any such event in the reasonable judgment of the
Remarketing Agents is to make it impracticable or inadvisable to proceed with the
Remarketing of the Debentures; (iv) the suspension of trading in the Common Stock on the New
York Stock Exchange, if the effect of such event in the reasonable judgment of the
Representatives is to make it impracticable or inadvisable to proceed with the Remarketing
of the Debentures or (v) any downgrading in the rating accorded the Company’s senior debt
securities by Moody’s Investors Service, a subsidiary of Moody’s Corporation, or Standard &
Poor’s, a division of the McGraw-Hill Companies, Inc., if the effect of such event in the
reasonable judgment of the Representatives is to make it impracticable or inadvisable to
proceed with the Remarketing of the Debentures;

     (b) No stop order suspending the effectiveness of the Registration Statement, if any,
or any part thereof shall have been issued and no proceeding for that purpose shall have
been initiated or threatened by the Commission; and any request of the Commission

-8-

 

for inclusion of additional information in the Registration Statement or the Prospectus
or otherwise shall have been complied with;

     (c) The Remarketing Agents shall have received certificates, each dated as of the
applicable Remarketing Settlement Date, of the President or Chief Executive Officer, any
Vice Chairman or an Executive Vice President of the Company and a principal financial or
accounting officer of the Company in which such officers shall state that: the
representations and warranties of the Company in this Agreement are true and correct in all
material respects with the same force and effect as though expressly made at and as of such
date; the Company has complied with all agreements in all material respects and satisfied
all conditions on its part to be performed or satisfied hereunder at or prior to such date;
no stop order suspending the effectiveness of the Registration Statement has been issued and
no proceedings for that purpose have been instituted or, to the best of their knowledge and
after reasonable investigation, are contemplated by the Commission; and, subsequent to the
respective dates as of which information is given in the Pricing Disclosure Package, there
has been no Material Adverse Effect, except as otherwise set forth in or contemplated by the
Pricing Disclosure Package;

     (d) A nationally recognized legal counsel acting as outside counsel for the Company,
shall have furnished to the Remarketing Agents its opinion, addressed to the Remarketing
Agents and dated the Remarketing Settlement Date, in form and substance reasonably
satisfactory to the Remarketing Agents and addressing such matters as are set forth in the
opinions furnished pursuant to Section 8(c) of the Underwriting Agreement, adapted as
necessary to relate to the Remarketed Debentures and to the Remarketing, if any, or to any
changed circumstances or events occurring subsequent to the date of this Agreement, such
adaptations being reasonably acceptable to counsel to the Remarketing Agents;

     (e) The General Counsel or Assistant General Counsel for the Company shall have
furnished to the Remarketing Agents his or her respective opinion, addressed to the
Remarketing Agents and dated the applicable Remarketing Settlement Date, in form and
substance reasonably satisfactory to the Remarketing Agents addressing such matters as are
set forth in such counsel’s opinion furnished pursuant to Section 8(d) of the Underwriting
Agreement, adapted as necessary to relate to the Remarket Debentures and to the applicable
Remarketing, if any, or to any changed circumstances or events occurring subsequent to the
date of this Agreement, such adaptations being reasonably acceptable to counsel to the
Remarketing Agents;

     (f) Outside counsel for the Remarketing Agents shall have furnished to the Remarketing
Agents its opinion, addressed to the Remarketing Agents and dated the applicable Remarketing
Settlement Date, in form and substance reasonably satisfactory to the Remarketing Agents;
and

     (g) At the applicable Remarketing Settlement Date, counsel for the Remarketing Agents
shall have been furnished with such documents as they may reasonably require for the purpose
of enabling them to pass upon the issuance and sale of the Remarketed Debentures as
contemplated herein.

-9-

 

     If any condition specified in this Section 6 is not satisfied when and as required to be
satisfied, this Agreement may be terminated jointly by the Remarketing Agents by notice to the
Company at any time on or prior to the next applicable Remarketing Settlement Date, which
termination shall be without liability on the part of any party to any other party, except Section
7 shall at all times be effective and shall survive such termination.

     SECTION 7. Indemnification.

     (a) Indemnification of Remarketing Agent. The Company will indemnify and hold harmless
each Remarketing Agent against any losses, claims, damages or liabilities, joint or several,
to which such Remarketing Agent may become subject, under the Act, the Exchange Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement
of a material fact contained in the Registration Statement or caused by any omission or
alleged omission to state therein a material fact required to be stated therein or necessary
in order to make the statements therein, not misleading, or (ii) any untrue statement or
alleged untrue statement of a material fact contained in the Prospectus, any Preliminary
Prospectus, the Pricing Prospectus, the Pricing Disclosure Package (or any amendment or
supplement thereto) or any Issuer Free Writing Prospectus, or caused by any omission or
alleged omission to state therein a material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading, and will
reimburse such Remarketing Agent for any legal or other expenses reasonably incurred by it
in connection with investigating or defending any such action or claim as such expenses are
incurred; provided, however, that the Company will not be liable in any such case to the
extent that any such loss, claim, damage or liability arises out of or is based upon an
untrue statement or alleged untrue statement or omission or alleged omission made in the
Registration Statement, the Prospectus, any Preliminary Prospectus, the Pricing Prospectus,
Pricing Disclosure Package (or any amendment or supplement thereto) or any Issuer Free
Writing Prospectus, in reliance upon and in conformity with written information furnished to
the Company by such Remarketing Agent expressly for use therein; and provided, further, that
the foregoing indemnity agreement contained in this Section 7(a), with respect to the
Registration Statement, the Prospectus, any Preliminary Prospectus, the Pricing Prospectus,
the Pricing Disclosure Package (or any amendment or supplement thereto), or any Issuer Free
Writing Prospectus shall not inure to the benefit of any Remarketing Agent from whom the
person asserting any such losses, claims, damages or liabilities purchased Remarketed
Debentures, where (i) prior to the Applicable Time the Company shall have notified such
Remarketing Agent that the Registration Statement, the Basic Prospectus, any Preliminary
Prospectus, the Pricing Prospectus, the Pricing Disclosure Package, (or any amendment or
supplement thereto), or any Issuer Free Writing Prospectus contains an untrue statement of
material fact or omits to state therein a material fact necessary in order to make the
statements therein not misleading, (ii) such untrue statement or omission of a material fact
was corrected in a further amendment or supplement to the Registration Statement, the Basic
Prospectus, any Preliminary Prospectus, the Pricing Prospectus, the Pricing Disclosure
Package (or any amendment or supplement thereto), or, where permitted by law, an Issuer Free
Writing Prospectus, and such corrected Prospectus or Issuer Free Writing Prospectus was
provided to such

-10-

 

Remarketing Agent prior to the Applicable Time, (iii) such corrected Registration
Statement, Prospectus, Preliminary Prospectus, Pricing Prospectus, Pricing Disclosure
Package or Issuer Free Writing Prospectus (excluding any document incorporated by reference
therein) was not conveyed to such person at or prior to the contract for sale of the
Remarketed Debentures to such person and (iv) such loss, claim, damage or liability would
not have occurred had the corrected Registration Statement, Prospectus, Preliminary
Prospectus, Pricing Prospectus, Pricing Disclosure Package or Issuer Free Writing Prospectus
(excluding any document incorporated by reference therein) been conveyed to such person as
provided for in clause (iii) above.

     (b) Indemnification of Company. Each Remarketing Agent will, severally and not
jointly, indemnify and hold harmless the Company against any losses, claims, damages or
liabilities to which the Company or such controlling person may become subject, under the
Act, the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) arise out of or are based upon an untrue statement or
alleged untrue statement of any material fact contained in the Registration Statement, the
Basic Prospectus, any Preliminary Prospectus, the Pricing Prospectus, the Pricing Disclosure
Package (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus or
arise out of or are based upon the omission or the alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein not
misleading, in each case to the extent, but only to the extent, that such untrue statement
or alleged untrue statement or omission or alleged omission was made in the Registration
Statement, the Basic Prospectus, any Preliminary Prospectus, the Pricing Prospectus, the
Pricing Disclosure Package (or any amendment or supplement thereto) or any Issuer Free
Writing Prospectus, in reliance upon and in conformity with written information furnished to
the Company by such Remarketing Agent expressly for use therein; and will reimburse the
Company for any legal or other expenses reasonably incurred by the Company in connection
with investigating or defending any such action or claim as such expenses are incurred.

     (c) Actions against Parties; Notification. Promptly after receipt by an indemnified
party under subsection (a) or (b) above of notice of the commencement of any action, such
indemnified party shall, if a claim in respect thereof is to be made against the
indemnifying party under such subsection, notify the indemnifying party in writing of the
commencement thereof; but the omission so to notify the indemnifying party will not relieve
it from any liability which it may have to any indemnified party otherwise under such
subsection. In case any such action is brought against any indemnified party and it
notifies the indemnifying party of the commencement thereof, the indemnifying party will be
entitled to participate therein and, to the extent that it may wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with counsel
satisfactory to such indemnified party (who shall not, except with the consent of the
indemnified party, be counsel to the indemnifying party), and, after notice from the
indemnifying party to such indemnified party of its election so to assume the defense
thereof, the indemnifying party will not be liable to such indemnified party under such
subsection for any legal expenses of other counsel or any other expenses, in each case
subsequently incurred by such indemnified party, in connection with the defense thereof
other than reasonable costs of investigation.

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     (d) If the indemnification provided for in this Section 7 is unavailable to or
insufficient to hold harmless an indemnified party under subsection (a) or (b) above in
respect of any losses, claims, damages or liabilities (or actions in respect thereof)
referred to therein, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of such losses, claims, damages or liabilities
(or actions in respect thereof) in such proportion as is appropriate to reflect the relative
benefits received by the Company on the one hand and the Remarketing Agents on the other
from the offering of Remarketed Debentures to which such loss, claim, damage or liability
(or action in respect thereof) relates. If, however, the allocation provided by the
immediately preceding sentence is not permitted by applicable law or if the indemnified
party failed to give notice under subsection (c) above, then each indemnifying party shall
contribute to such amount paid or payable by such indemnified party in such proportion as is
appropriate to reflect not only such relative benefits but also the relative fault of the
Company on the one hand and the Remarketing Agents on the other in connection with the
statements or omissions which resulted in such losses, claims, damages or liabilities (or
actions in respect thereof), as well as any other relevant equitable considerations. The
relative benefits received by the Company on the one hand and such Remarketing Agents on the
other shall be deemed to be in the same proportion as the total Principal Amount of the
Remarketed Debentures bears to the total Remarketing Fee. The relative fault shall be
determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact
required to be stated therein or necessary to make the statements therein not misleading
relates to information supplied by the Company on the one hand or by such Remarketing Agents
on the other and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The Company and the
Remarketing Agents agree that it would not be just and equitable if contribution pursuant to
this subsection (d) were determined by pro rata allocation (even if the Remarketing Agents
were treated as one entity for such purpose) or by any other method of allocation which does
not take account of the equitable considerations referred to above in this subsection (d).
The amount paid or payable by an indemnified party as a result of the losses, claims,
damages or liabilities (or actions in respect thereof) referred to above in this subsection
(d) shall be deemed to include any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this subsection (d), neither Remarketing Agent shall be
required to contribute any amount in excess of the amount by which the total price at which
the applicable Remarketed Debentures were offered to the public exceeds the amount of any
damages which such Remarketing Agent has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The obligations of the Remarketing Agents in this subsection (d) to
contribute are several and not joint.

     (e) Control Persons. The obligations of the Company under this Section 7 shall be in
addition to any liability which the Company may otherwise have and shall extend, upon the
same terms and conditions, to each officer and director of the respective Remarketing Agents
and each person, if any, who controls any Remarketing Agent

-12-

 

within the meaning of the Act; and the obligations of the Remarketing Agents under this
Section 7 shall be in addition to any liability which the respective Remarketing Agents may
otherwise have and shall extend, upon the same terms and conditions, to each officer and
director of the Company and to each person, if any, who controls the Company within the
meaning of the Act.

     SECTION 8. Resignation and Removal of the Remarketing Agent.

     Each of Citigroup or JPMorgan may resign and be discharged from their duties and obligations
hereunder, and the Company may remove either of the Remarketing Agents, by giving 30 days’ prior
written notice, in the case of resignation, to the Company, the remaining Remarketing Agent and the
Purchase Contract Agent and, in the case of a removal, to the removed Remarketing Agent and the
Purchase Contract Agent.

     SECTION
9. Dealing in Securities. Each Remarketing Agent, when acting as a
Remarketing Agent or in its individual or any other capacity, may, to the extent permitted by law,
buy, sell, hold and deal in any of the Remarketed Debentures, Corporate Units, Treasury Units or
any of the securities of the Company (collectively, the “Securities”). In such case, the
Remarketing Agents may exercise any vote or join in any action which any beneficial owner of such
Securities may be entitled to exercise or take pursuant to the Indenture with like effect as if
they did not act in any capacity hereunder. Each Remarketing Agent, in its individual capacity,
either as principal or agent, may also engage in or have an interest in any financial or other
transaction with the Company as freely as if it did not act in any capacity hereunder.

     SECTION 10. Remarketing Agent’s Performance; Duty of Care. The duties and obligations
of the Remarketing Agents shall be determined solely by the express provisions of this Agreement
and the Related Agreements. No implied covenants or obligations of or against the Remarketing
Agents shall be read into this Agreement or any of the Related Agreements. In the absence of bad
faith on the part of the Remarketing Agents, the Remarketing Agents may conclusively rely upon any
document furnished to them pursuant to this Agreement, as to the truth of the statements expressed
in any of such documents. The Remarketing Agents shall be protected in acting upon any document or
communication reasonably believed by it to have been signed, presented or made by the proper party
or parties except as otherwise set forth herein. The Remarketing Agents shall have no obligation
to determine whether there is any limitation under applicable law on the Reset Rate or, if there is
any such limitation, the maximum permissible Reset Rate, and they shall rely solely upon written
notice from the Company (which the Company agrees to provide prior to the third Business Day before
the Remarketing Period Start Date for the applicable Remarketing) as to whether or not there is any
such limitation and, if so, the maximum permissible Reset Rate. Each Remarketing Agent, acting
under this Agreement, shall incur no liability to the Company or to any holder of Remarketed
Debentures in its individual capacity or as Remarketing Agent for any action or failure to act, on
its part in connection with a Remarketing, except if such liability resulted from its failure to
comply with the terms of this Agreement or the bad faith, gross negligence or willful misconduct on
its part.

     SECTION 11. Termination. This Agreement shall automatically terminate (i) as to a
Remarketing Agent on the effective date of the resignation or removal of such Remarketing Agent
pursuant to Section 8 and (ii) on the earlier of (x) a Termination Event and (y) the Third

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Purchase Contract Settlement Date. If this Agreement is terminated pursuant to any of the
other provisions hereof, except as otherwise provided herein, the Company shall not be under any
liability to such Remarketing Agent and such Remarketing Agent shall not be under any liability to
the Company, except that if this Agreement is terminated by a Remarketing Agent because of any
failure or refusal on the part of the Company to comply with the terms or to fulfill any of the
conditions of this Agreement, the Company will reimburse such Remarketing Agent for all of its
out-of-pocket expenses (including the fees and disbursements of its counsel) reasonably incurred by
it. Notwithstanding any termination of this Agreement, in the event there has been a Successful
Remarketing, the obligations set forth in Section 4 hereof shall survive and remain in full force
and effect until all amounts payable under said Section 4 shall have been paid in full.

     SECTION 12. Notices. All communications hereunder will be in writing and will be
mailed, delivered or telegraphed and confirmed to Citigroup Global Markets Inc., 388 Greenwich
Street, New York, New York 10013, Attention: General Counsel, facsimile no. (212) 816-7912, and to
J.P. Morgan Securities Inc., 277 Park Avenue, 9th Floor, New York, New York, N.Y. 10172,
Attention: Equity Syndicate Desk, Facsimile No.: (212) 622-8358, or, if sent to the Company, will
be mailed, delivered or telecopied and confirmed to it at 70 Pine Street, New York, New York 10270,
Attention: Corporate Secretary, Facsimile No.: (212) 785-1584.

     SECTION 13. Persons Entitled to Benefit of Agreement. This Agreement will inure to
the benefit of and be binding upon the parties hereto and their respective successors and the
officers and directors and controlling and other persons referred to in Section 7, and no other
person will have any right or obligation hereunder.

     SECTION 14. Survival. The respective indemnities, representations, warranties and
agreements of the Company and each of Remarketing Agents contained in this Agreement or made by or
on behalf of them, respectively, pursuant to this Agreement, shall survive any Remarketing and
shall remain in full force and effect, regardless of any investigation made by or on behalf of any
of them or any person controlling any of them.

     SECTION 15. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York.

     SECTION 16. Counterparts. This Agreement may be executed in one or more counterparts
and, if executed in more than one counterpart, the executed counterparts shall each be deemed to be
an original but all such counterparts shall together constitute one and the same instrument.

     SECTION 17. Headings. The headings herein are inserted for convenience of reference
only and are not intended to be part of, or to affect the meaning or interpretation of, this
Agreement.

     SECTION 18. Absence of Fiduciary Relationship. The Company hereby acknowledges that
(a) the Remarketing pursuant to this Agreement will be an arm’s-length commercial transaction
between the Company, on the one hand, and the Remarketing Agents, on the other, (b) the Remarketing
Agent is not acting as a fiduciary or agent (except pursuant to the express

-14-

 

terms hereof) of the Company and (c) the Company has consulted its own legal and financial
advisors to the extent it deemed appropriate.

     SECTION 19. Amendments. This Agreement may be amended by an instrument in writing
signed by the parties hereto. The Company agrees that it will not enter into, cause or permit any
amendment or modification of the Related Agreements or any other instruments or agreements relating
to the Debentures or the Corporate Units that would materially and adversely affect the rights,
duties or obligations of the Remarketing Agents, without their prior written consent.

     SECTION 20. Successors and Assigns. The rights and obligations of the Company
hereunder may not be assigned or delegated to any other Person without the prior written consent of
the Remarking Agents. The rights and obligations of the Remarketing Agents hereunder may not be
assigned or delegated to any other Person without the prior written consent of the Company. Any
assignment or delegation in violation of this Section 20 will be null and void.

     SECTION 21. Severability. In case any provision in this Agreement shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining provisions
shall not in any way be affected or impaired thereby.

     SECTION 22. Rights of the Purchase Contract Agent. Notwithstanding any other
provisions of this Agreement, the Purchase Contract Agent shall be entitled to all the rights,
protections and privileges granted to the Purchase Contract Agent in the Purchase Contract
Agreement and Pledge Agreement.

     If the foregoing correctly sets forth the agreement by and between the Company, the
Remarketing Agents and the Purchase Contract Agent, please indicate your acceptance in the space
provided for that purpose below.

SIGNATURES ON THE FOLLOWING PAGE

-15-

 

	 	 	 	 	 	 	 

	 	 	Very truly yours,
	 
	 	 	 	 	 	 
	 	 	AMERICAN INTERNATIONAL GROUP, INC.
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Robert A. Gender
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Robert A. Gender
	 

	 	 	 	Title:
	 	Vice President and Treasurer

	 	 	 	 	 

	Accepted in New York, New York	 	 
	 
	 	 	 	 
	CITIGROUP GLOBAL MARKETS INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Stephen Fromm
 

	 	 
	Name:

	 	Stephen Fromm	 	 
	Title:

	 	Managing Director	 	 
	 
	 	 	 	 
	J.P. MORGAN SECURITIES INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Santosh Sreenivasan
 

	 	 
	Name:

	 	Santosh Sreenivasan	 	 
	Title:

	 	Managing Director	 	 

THE BANK OF NEW YORK, not individually but solely as Purchase 

Contract Agent
and as attorney-in-fact for the Holders of the Stock 

Purchase Contracts

	 	 	 	 	 

	By:

	 	/s/ Sherma Thomas
 

	 	 
	Name:

	 	Sherma Thomas	 	 
	Title:

	 	Assistant Treasurer	 	 

Remarketing Agreement

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