Document:

EX-10.6

 Exhibit 10.6 

CONFIDENTIALITY AGREEMENT 

XEROX CORPORATION 
 May 15, 2018 

To:    Darwin Deason (the “Deason” or “you”) 

Ladies and Gentlemen: 
 This letter agreement shall become
effective upon the appointment of any Deason Designee to the Board of Directors (the “Board”) of Xerox Corporation (the “Company”). Capitalized terms used but not otherwise defined herein shall have the
meanings given to such terms in the Director Appointment, Nomination and Settlement Agreement (the “Settlement Agreement”), dated as of May 13, 2018, as amended, by and among the Company, Deason, the Icahn Group and
the Existing Directors. The Company understands and agrees that, subject to the terms of, and in accordance with, this letter agreement, an Deason Designee may, if and to the extent he or she desires to do so, disclose information he or she obtains
while serving as a member of the Board to you and your Representatives (as hereinafter defined), and may discuss such information with any and all such persons, subject to the terms and conditions of this Agreement. As a result, you may receive
certain non-public information regarding the Company. You acknowledge that this information is proprietary to the Company and may include trade secrets or other business information the disclosure of which
could harm the Company. In consideration for, and as a condition of, the information being furnished to you and your agents, representatives, attorneys, advisors, directors, officers or employees, subject to the restrictions in paragraph 2
(collectively, the “Representatives”), you agree to treat any and all information concerning or relating to the Company or any of its subsidiaries or current or former affiliates that is furnished to you or your Representatives
(regardless of the manner in which it is furnished, including in written or electronic format or orally, gathered by visual inspection or otherwise) by any Deason Designee, or by or on behalf of the Company, together with any notes, analyses,
reports, models, compilations, studies, interpretations, documents, records or extracts thereof containing, referring, relating to, based upon or derived from such information, in whole or in part (collectively, “Evaluation
Material”), in accordance with the provisions of this letter agreement, and to take or abstain from taking the other actions hereinafter set forth. 
  

	1.	The term “Evaluation Material” does not include information that (a) is or has become generally available to the public other than as a result of a direct or indirect disclosure by you or your
Representatives in violation of this letter agreement or any other obligation of confidentiality, (b) was within your or any of your Representatives’ possession on a non-confidential basis prior to
its being furnished to you by any Deason Designee, or by or on behalf of the Company or its agents, representatives, attorneys, advisors, directors, officers or employees (collectively, the “Company Representatives”), or
(c) is received from a source other than any Deason Designee, the Company or any of the Company Representatives; provided, that in the case of (b) or (c) above, the source of such information was not believed by you, after reasonable
inquiry, to be bound by a confidentiality agreement with or other contractual, legal or fiduciary obligation of confidentiality to the Company or any other person with respect to such information at the time the information was disclosed to you.

	2.	You and your Representatives will, and you will cause your Representatives to, (a) keep the Evaluation Material strictly confidential and (b) not disclose any of the Evaluation Material in any manner
whatsoever without the prior written consent of the Company; provided, however, that you may privately disclose any of such information: (i) to your Representatives (A) who need to know such information for the purpose of advising you on
your investment in the Company and (B) who are informed by you of the confidential nature of such information and agree to be bound by the terms of this Agreement as if they were a party hereto; provided, further, that you will be responsible
for any violation of this letter agreement by your Representatives as if they were parties to this letter agreement; and (ii) to the Company and the Company Representatives. It is understood and agreed that no Deason Designee shall disclose to
you or your Representatives any Legal Advice (as defined below) that may be included in the Evaluation Material with respect to which such disclosure would constitute waiver of the Company’s attorney client privilege or attorney work product
privilege. Notwithstanding the foregoing, upon your request, the Company will enter into an agreement or other document with you that provide for such disclosure of Legal Advice to you in a manner as to preserve attorney client privilege and
attorney work product, provided that no Deason Designee shall not have taken any action, or failed to take any action, that has the purpose or effect of waiving attorney-client privilege or attorney work product privilege with respect to any portion
of such Legal Advice and a reputable outside legal counsel of national standing shall have provided the Company with a written opinion that such disclosure will not waive the Company’s attorney client privilege or attorney work product
privilege with respect to such Legal Advice. “Legal Advice” as used in this letter agreement shall be solely and exclusively limited to the advice provided by legal counsel and shall not include factual information or the
formulation or analysis of business strategy that is not protected by the attorney-client or attorney work product privilege. 

  

	3.	 In the event that you or any of your Representatives are required by applicable subpoena, legal process or other
legal requirement to disclose any of the Evaluation Material, you will promptly notify (except where such notice would be legally prohibited) the Company in writing by email, facsimile and certified mail so that the Company may seek a protective
order or other appropriate remedy (and if the Company seeks such an order, you will provide such cooperation as the Company shall reasonably request), at its cost and expense. Nothing herein shall be deemed to prevent you or your Representatives, as
the case may be, from honoring a subpoena, legal process or other legal requirement that requires discovery, disclosure or production of the Evaluation Material if: (a) you produce or disclose only that portion of the Evaluation Material which
your outside legal counsel of national standing advises you in writing is legally required to be so produced or disclosed and you inform the recipient of such Evaluation Material of the existence of this letter agreement and the confidential nature
of such Evaluation Material; or (b) the Company consents in writing to having the Evaluation Material produced or disclosed pursuant to the subpoena, legal process or other legal requirement. In no event will you or any of your Representatives
oppose action by the Company to obtain a protective order or other relief to prevent the disclosure of the Evaluation Material or to obtain reliable assurance that confidential treatment will be afforded the Evaluation Material. For the

  
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avoidance of doubt, it is understood that there shall be no “legal requirement” requiring you to disclose any Evaluation Material solely by virtue of the fact that, absent such
disclosure, you would be prohibited from purchasing, selling, or engaging in derivative or other voluntary transactions with respect to the Common Shares of the Company or otherwise proposing or making an offer to do any of the foregoing, or you
would be unable to file any proxy or other solicitation materials in compliance with Section 14(a) of the Exchange Act or the rules promulgated thereunder. 

  

	4.	You acknowledge that (a) none of the Company or any of the Company Representatives makes any representation or warranty, express or implied, as to the accuracy or completeness of any Evaluation Material, and
(b) none of the Company or any of the Company Representatives shall have any liability to you or to any of your Representatives relating to or resulting from the use of the Evaluation Material or any errors therein or omissions therefrom. You
and your Representatives (or anyone acting on your or their behalf) shall not directly or indirectly initiate contact or communication with any executive or employee of the Company other than the Chief Executive Officer, Executive Vice President and
Chief Financial Officer, Executive Vice President and General Counsel and Corporate Secretary and/or such other persons approved in writing by the foregoing or the Board concerning Evaluation Material, or to seek any information in connection
therewith from any such person other than the foregoing, without the prior consent of the Company; provided, however, the restriction in this sentence shall not in any way apply to any Deason Designee acting in his or her capacity as a Board member
(nor shall it apply to any other Board members). 

  

	5.	All Evaluation Material shall remain the property of the Company. Neither you nor any of your Representatives shall by virtue of any disclosure of and/or your use of any Evaluation Material acquire any rights with
respect thereto, all of which rights (including all intellectual property rights) shall remain exclusively with the Company. At any time after the date on which no Deason Designee is a director of the Company, upon the request of the Company for any
reason, you will promptly return to the Company or destroy all hard copies of the Evaluation Material and use commercially reasonable efforts to permanently erase or delete all electronic copies of the Evaluation Material in your or any of your
Representatives’ possession or control (and, upon the request of the Company, shall promptly certify to the Company that such Evaluation Material has been erased or deleted, as the case may be). Notwithstanding the return or erasure or deletion
of Evaluation Material, you and your Representatives will continue to be bound by the obligations contained herein for as long as any Evaluation Material is retained by you or your Representatives. 

 

	6.	You acknowledge, and will advise your Representatives, that the Evaluation Material may constitute material non-public information under applicable federal and state securities
laws, and that you shall not, and you shall use your commercially reasonable efforts to ensure that neither you nor your Representatives, do not, trade or engage in any derivative or other transaction, on the basis of such information in violation
of such laws. You further acknowledge and agree that the responsibility to comply with such laws is yours and your Representatives, and not the Company’s, and that the Company has no duty or obligation herein or otherwise to police, inquire,
respond or facilitate any such trade or compliance. 

  
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	7.	You hereby represent and warrant to the Company that (a) you have all requisite power and authority to execute and deliver this letter agreement and to perform your obligations hereunder, (b) this letter
agreement has been duly authorized, executed and delivered by you, and is a valid and binding obligation, enforceable against you in accordance with its terms, (c) this letter agreement will not result in a violation of any terms or conditions
of any agreements to which you are a party or by which you may otherwise be bound or of any law, rule, license, regulation, judgment, order or decree governing or affecting you, and (d) your entry into this letter agreement does not require
approval by any owners or holders of any equity or other interest in you (except as has already been obtained). 

  

	8.	Any waiver by the Company of a breach of any provision of this letter agreement shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this
letter agreement. The failure of the Company to insist upon strict adherence to any term of this letter agreement on one or more occasions shall not be considered a waiver or deprive the Company of the right thereafter to insist upon strict
adherence to that term or any other term of this letter agreement. 

  

	9.	You acknowledge and agree that the value of the Evaluation Material to the Company is unique and substantial, but may be impractical or difficult to assess in monetary terms. You further acknowledge and agree that in
the event of an actual or threatened violation of this letter agreement, immediate and irreparable harm or injury would be caused for which money damages would not be an adequate remedy. Accordingly, you acknowledge and agree that, in addition to
any and all other remedies which may be available to the Company at law or equity, the Company shall be entitled to an injunction or injunctions to prevent breaches of this letter agreement and to enforce specifically the terms and provisions of
this letter agreement exclusively in the federal or state courts of the State of New York. In the event that any action shall be brought in equity to enforce the provisions of this letter agreement, you shall not allege, and you hereby waive the
defense, that there is an adequate remedy at law. 

  

	10.	Each of the parties (a) consents to submit itself to the personal jurisdiction of the federal or state courts of the State of New York in the event any dispute arises out of this letter agreement or the
transactions contemplated by this letter agreement, (b) agrees that it shall not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court, (c) agrees that it shall not bring any action
relating to this letter agreement or the transactions contemplated by this letter agreement in any court other than the federal or state courts of the State of New York, and each of the parties irrevocably waives the right to trial by jury,
(d) agrees to waive any bonding requirement under any applicable law, in the case any other party seeks to enforce the terms by way of equitable relief, and (e) irrevocably consents to service of process by a reputable overnight delivery
service, signature requested, to the address of such party’s principal place of business or as otherwise provided by applicable law. THIS LETTER AGREEMENT SHALL BE GOVERNED IN ALL RESPECTS, INCLUDING VALIDITY, INTERPRETATION AND EFFECT, BY THE
LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PRINCIPLES OF SUCH STATE. 

  
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	11.	This letter agreement and the Settlement Agreement contain the entire understanding of the parties with respect to the subject matter hereof and thereof and supersedes all prior or contemporaneous agreements or
understandings, whether written or oral. This letter agreement may be amended only by an agreement in writing executed by the parties hereto. 

  

	12.	All notices, consents, requests, instructions, approvals and other communications provided for in this letter agreement and all legal process in regard to this letter agreement shall be in writing and shall be deemed
validly given, made or served, if (a) given by email, when such email is sent to the email address set forth below and the appropriate confirmation is received or (b) if given by any other means, when actually received during normal
business hours at the address specified in this subsection: 

 if to the Company: 

Xerox Corporation 
 P.O. Box 4505

 201 Merritt 7 
 Norwalk,
Connecticut 06851 

					
		 	Attention:	 	General Counsel
		 	Email:	 	sarah.hlavinka@xerox.com

 if to Deason: 

Darwin Deason 
 5956 Sherry Lane,
Suite 800 
 Dallas, Texas 75225 
  

	13.	If at any time subsequent to the date hereof, any provision of this letter agreement shall be held by any court of competent jurisdiction to be illegal, void or unenforceable, such provision shall be of no force and
effect, but the illegality or unenforceability of such provision shall have no effect upon the legality or enforceability of any other provision of this letter agreement. 

 

	14.	This letter agreement may be executed (including by facsimile or PDF) in two or more counterparts which together shall constitute a single agreement. 

 

	15.	This letter agreement and the rights and obligations herein may not be assigned or otherwise transferred, in whole or in part, by you without the express written consent of the Company. This letter agreement, however,
shall be binding on successors of the parties to this letter agreement. 

  

	16.	Deason shall cause any Replacement for a Deason Designee appointed to the Board pursuant to the Settlement Agreement to execute a copy of this letter agreement. 

  
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	17.	This letter agreement shall expire two years from the date on which no Deason Designee remains a director of the Company; except that you shall maintain in accordance with the confidentiality obligations set forth
herein any Evaluation Material (a) constituting trade secrets for such longer time as such information constitutes a trade secret of the Company as defined under 18 U.S.C. § 1839(3) and (b) retained pursuant to Section 5.

  

	18.	No licenses or rights under any patent, copyright, trademark, or trade secret are granted or are to be implied by this letter agreement. 

 

	19.	Each of the parties acknowledges that it has been represented by counsel of its choice throughout all negotiations that have preceded the execution of this letter agreement, and that it has executed the same with the
advice of said counsel. Each party and its counsel cooperated and participated in the drafting and preparation of this agreement and the documents referred to herein, and any and all drafts relating thereto exchanged among the parties shall be
deemed the work product of all of the parties and may not be construed against any party by reason of its drafting or preparation. Accordingly, any rule of law or any legal decision that would require interpretation of any ambiguities in this
agreement against any party that drafted or prepared it is of no application and is hereby expressly waived by each of the parties, and any controversy over interpretations of this agreement shall be decided without regards to events of drafting or
preparation. The term “including” shall in all instances be deemed to mean “including without limitation.” 

[Signature Pages Follow] 

  
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 Please confirm your agreement with the foregoing by signing and returning one copy of this letter agreement to
the undersigned, whereupon this letter agreement shall become a binding agreement between you and the Company. 
  

			
	Very truly yours,
	
	XEROX CORPORATION
		
	By:	 	 /s/ Sarah E. Hlavinka

		 	Name: Sarah E. Hlavinka
		 	Title:   EVP

 
			
	By:	 	 /s/ Darwin Deason

		 	Darwin Deason

  
 8Exhibit

Exhibit 4(a)

May 10, 2018

Company Order and Officers’ Certificate
3.10% Senior Notes, Series F, due 2026
3.75% Senior Notes, Series I, due 2047

The Bank of New York Mellon Trust Company, N.A., as Trustee
2 North LaSalle Street
Suite 700
Chicago, Illinois 60602

Ladies and Gentlemen:

Pursuant to Article Two of the Indenture, dated as of November 1, 2016 (as it may be amended or supplemented, the “Original Indenture”), from AEP Transmission Company, LLC (the “Company”) to The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”), as supplemented by the First Supplemental Indenture, dated as of November 21, 2016 (the “First Supplemental Indenture” and as further supplemented by the Second Supplemental Indenture, dated as of September 28, 2017 (the “Second Supplemental Indenture”) and, together with the Original Indenture, the “Indenture”) and the Board Resolutions dated August 22, 2017, copies of which, certified by the Secretary or an Assistant Secretary of the Company, have been delivered under Section 2.01 of the Indenture and have not been rescinded,

	
			
	1.
	The Company’s 3.75% Senior Notes, Series I, due 2047 (the “Series I Notes”) are hereby established.  An additional $125,000,000 aggregate principal amount of the Company’s 3.10% Senior Notes, Series F, due 2026 (reopening of the 3.10% Senior Notes, Series F, due 2026, which, in addition to that principal amount previously outstanding, equals a total aggregate principal amount of $425,000,000, collectively, the “New Series F Notes”) are hereby established.  The New Series F Notes and the Series I Notes are collectively referred to herein as the “Notes”.  The Notes shall be in substantially the forms attached hereto as Exhibits 1 and 2.

	 
	 
	 

	2.
	The terms and characteristics of the Notes shall be as follows (the numbered clauses set forth below corresponding to the numbered subsections of Section 2.01 of the Indenture, with terms used and not defined herein having the meanings specified in the Indenture or in the Notes):

	 
	 
	 

	 
	(i)
	the aggregate principal amount of Notes which may be authenticated and delivered under the Indenture initially shall be limited to $425,000,000 for the New Series F Notes and $500,000,000 for the Series I Notes, except as contemplated in Section 2.01(i) of the Indenture and except that such principal amount may be increased from time to time; all New Series F Notes and all Series I Notes need not be

	
			
	 
	 
	issued at the same time and each such series may be reopened at any time, without the consent of any security holder, for issuance of additional Notes, which Notes will have the same interest rate, maturity and other terms as those initially issued;

	 
	 
	 

	 
	(ii)
	the date on which the principal of the New Series F Notes shall be payable shall be December 1, 2026 and the date on which the principal of the Series I Notes shall be payable shall be December 1, 2047;

	 
	 
	 

	 
	(iii)
	interest shall accrue from December 1, 2017 for the New Series F Notes and September 28, 2017 for the Series I Notes; the Interest Payment Dates on which such interest will be payable shall be June 1 and December 1, and the Regular Record Date for the determination of holders to whom interest is payable on any such Interest Payment Date shall be the May 15 or November 15 preceding the relevant Interest Payment Date; provided that the first Interest Payment Date shall be June 1, 2018 and interest payable on the Stated Maturity Date or any Redemption Date shall be paid to the Person to whom principal shall be paid;

	 
	 
	 

	 
	(iv)
	the interest rate at which the New Series F Notes shall bear interest shall be 3.10% per annum and the interest rate at which the Series I Notes shall bear interest shall be 3.75% per annum;

	 
	 
	 

	 
	(v)
	Optional Redemption.

(a)   At any time prior to September 1, 2026, the New Series F Notes shall be redeemable at the option of the Company, in whole at any time or in part from time to time, upon not less than thirty but not more than sixty days’ previous notice given to the registered owners of the New Series F Notes at a redemption price equal to the greater of (i) 100% of the principal amount of the New Series F Notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the New Series F Notes being redeemed that would be due if such New Series F Notes matured on September 1, 2026 (excluding the portion of any such interest accrued to the date of redemption) discounted (for purposes of determining present value) to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 15 basis points, plus, accrued interest thereon to the date of redemption.

(b)    At any time prior to June 1, 2047, the Series I Notes shall be redeemable at the option of the Company, in whole at any time or in part from time to time, upon not less than thirty but not more than sixty days’ previous notice given to the registered owners of the Series I Notes at a redemption price equal to the greater of (i) 100% of the principal amount of the Series I Notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Series I Notes being redeemed that would be due if such Series I

2

	
			
	 
	 
	Notes matured on June 1, 2047 (excluding the portion of any such interest accrued to the date of redemption) discounted (for purposes of determining present value) to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 15 basis points, plus, accrued interest thereon to the date of redemption.

At any time on or after September 1, 2026, the New Series F Notes shall be redeemable at the option of the Company, in whole or in part, at 100% of the principal amount of the New Series F Notes being redeemed, plus accrued and unpaid interest thereon to but excluding the date of redemption.  At any time on or after June 1, 2047, the Series I Notes shall be redeemable at the option of the Company, in whole or in part, at 100% of the principal amount of the Series I Notes being redeemed, plus accrued and unpaid interest thereon to but excluding the date of redemption.

“Comparable Treasury Issue,” applicable to each series of the Notes, means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term (“remaining life”) of the Notes  (assuming, for purpose of the New Series F Notes, that the New Series F Notes matured on September 1, 2026 and, for purpose of the Series I Notes, the Series I Notes matured on June 1, 2047) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining life of such series of the Notes.

“Comparable Treasury Price,” applicable to each series of the Notes, means, with respect to any redemption date, (1) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (2) if the Company obtains fewer than four of such Reference Treasury Dealer Quotations, the average of all such quotations.

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Company and notified by the Company to the Trustee.

“Reference Treasury Dealer” means a primary U.S. Government securities dealer or dealers selected by the Company and notified by the Company to the Trustee.

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Company and notified to the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company and the Trustee by such Reference Treasury Dealer at or before 3:30 p.m., New York City time, on the third Business Day preceding such redemption date.

3

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

	 
	 
	 

	 
	(vi)
	(a) the Notes shall be issued in the form of Global Notes; (b) the Depositary for such Global Notes shall be The Depository Trust Company; and (c) the procedures with respect to transfer and exchange of Global Notes shall be as set forth in the forms of Note attached hereto;

	 
	 
	 

	 
	(vii)
	the title of the New Series F Notes shall be “3.10% Senior Notes, Series F, due 2026” and the title of the Series I Notes shall be “3.75% Senior Notes, Series I, due 2047”

	 
	 
	 

	 
	(viii)
	the forms of the Notes shall be as set forth in Paragraph 1, above;

	 
	 
	 

	 
	(ix)
	not applicable;

	 
	 
	 

	 
	(x)
	the Notes shall not be subject to a Periodic Offering;

	 
	 
	 

	 
	(xi)
	not applicable;

	 
	 
	 

	 
	(xii)
	not applicable;

	 
	 
	 

	 
	(xiii)
	the Company will pay the principal of the Notes and any premium and interest payable at redemption, if any, or at maturity in immediately available funds at the office of The Bank of New York Mellon Trust Company, N.A., 101 Barclay Street, 8th Floor, New York, NY 10286;

	 
	 
	 

	 
	(xiv)
	the Notes shall be issuable in denominations of $2,000 and any integral multiples of $1,000 in excess thereof.;

	 
	 
	 

	 
	(xv)
	not applicable;

	 
	 
	 

	 
	(xvi)
	the Notes shall not be issued as Discount Securities;

	 
	 
	 

	 
	(xvii)
	not applicable;

	 
	 
	 

	 
	(xviii)
	not applicable;

	 
	 
	 

	 
	(xix)
	the provisions of Section 4.05 and Article Ten of the Indenture shall apply to the Notes, and

4

	
			
	 
	(xx)

	Restrictive Covenants:

Consolidated Priority Debt.

The Company covenants that so long as any of the Notes are outstanding that it will not permit Consolidated Priority Debt to exceed 10% of Consolidated Tangible Net Assets for a period in excess of five consecutive business days. 

Limitation on Liens.

The Company covenants that for so long as any of the Notes are outstanding that it will not create or suffer to exist or permit any of its subsidiaries to create or suffer to exist any Secured Debt, unless, at the same time, the Notes that are outstanding are also secured by such Lien on an equal and ratable basis; provided, however, the foregoing does not limit:

a) Permitted Liens; and 

b) Any other Lien not covered in clause (a) as long as immediately after the creation of such Lien the aggregate principal amount of Secured Debt does not exceed 10% of Consolidated Tangible Net Assets.

Definitions:

“Consolidated Priority Debt” means all Priority Debt of the Company and its subsidiaries determined on a consolidated basis eliminating inter-company items.

“Consolidated Tangible Net Assets” means the total of all assets (including revaluations thereof as a result of commercial appraisals, price level restatement or otherwise) appearing on the most recent quarterly or annual, as applicable, consolidated balance sheet of the Company and its consolidated subsidiaries, net of applicable reserves and deductions, but excluding goodwill, trade names, trademarks, patents, unamortized debt discount and all other like intangible assets (which term shall not be construed to include such revaluations), less the aggregate of the consolidated current liabilities of the Company and its consolidated subsidiaries appearing on such balance sheet.

“Debt” means any indebtedness for borrowed money.

“Lien or Liens” means any mortgage, pledge, security interest, or other lien on any utility properties or tangible assets, including, without limitation, the capital stock or comparable equity interest of its subsidiaries, owned on the date hereof or hereafter acquired by the Company or its subsidiaries.

5

	
			
	 
	 
	“Permitted Liens” means:

- Liens on property existing at the time of acquisition or construction of such property (or created within one year after completion of such acquisition or construction), whether by purchase, merger, construction or otherwise, or to secure the payment of all or any part of the purchase price or construction cost thereof, including the extension of any Liens to repairs, renewals, replacements, substitutions, betterments, additions, extensions and improvements then or thereafter made on the property subject thereto;
- any extensions, renewals or replacements (or successive extensions, renewals or replacements), in whole or in part, of Liens permitted by the foregoing clauses;
- the pledge of any bonds or other securities at any time issued under any of the Secured Debt permitted by the above clauses; and
- the creation or existence of leases (operating or capital) made, or existing on property acquired, in the ordinary course of business.

“Priority Debt” means, without duplication, any Debt of the Company’s subsidiaries; provided that there shall be excluded from any calculation of Priority Debt, (i) the Debt of any subsidiary owing to the Company or a subsidiary of the Company, and (ii) the Debt of any entity which becomes a subsidiary after the issuance of the Notes and any extension, renewal or refunding thereof, provided that such Debt was not incurred in contemplation of such entity becoming a subsidiary.

“Secured Debt” means any Debt of the Company or any of its subsidiaries secured by a Lien (other than a Permitted Lien).

	 
	 
	 

6

	
			
	3.
	You are hereby requested to cancel, in the manner provided in the Indenture (i) the Series D Notes represented by the Global Note bearing CUSIP No. 00115A AA7 in an aggregate principal amount of $124,800,000, (ii) the Series D Notes represented by the Global Note bearing CUSIP No. U0081EAD0 in an aggregate principal amount of $200,000, (iii) the Series H Notes represented by the certificate bearing CUSIP No. 00115AAG4 in an aggregate principal amount of $499,855,000, (iv) the Series H Notes represented by the Global Note bearing CUSIP No. U0081EAC2 in the aggregate principal amount of $145,000, in each case heretofore validly tendered for exchange by the applicable Securityholders as provided in the Indenture, and (v) the existing Global Note of the 3.10% Senior Notes, Series F, due 2026, currently held by the Trustee as Custodian.

	 
	 

	4.
	You are hereby requested to authenticate on the date hereof (i) $425,000,000 aggregate principal amount (which is a reopening of the 3.10% Senior Notes, Series F, due 2026, plus that principal amount previously outstanding) of 3.10% Senior Notes, Series F, due 2026, and (ii) $500,000,000 aggregate principal amount of 3.75% Senior Notes, Series I, due 2047, executed by the Company and delivered to you concurrently with this Company Order and Officers’ Certificate, in the manner provided by the Indenture.

	 
	 

	5.
	You are hereby requested to hold the Notes as custodian for DTC in accordance with the Blanket Issuer Letter of Representations dated November 14, 2016, from the Company to DTC.

	 
	 

	6.
	Concurrently with this Company Order and Officers’ Certificate, an Opinion of Counsel under Sections 2.04 and 13.06 of the Indenture is being delivered to you.

	 
	 

	7.
	The undersigned Lonni L. Dieck and Thomas G. Berkemeyer, the Treasurer and Assistant Secretary, respectively, of the Company do hereby certify that:

	 
	 

	 
	(i)
	we have read the relevant portions of the Indenture, including without limitation the conditions precedent provided for therein relating to the action proposed to be taken by the Trustee as requested in this Company Order and Officers’ Certificate, and the definitions in the Indenture relating thereto;

	 
	 
	 

	 
	(ii)
	we have read the Board Resolutions of the Company and the Opinion of Counsel referred to above;

	 
	 
	 

	 
	(iii)
	we have conferred with other officers of the Company, have examined such records of the Company and have made such other investigation as we deemed relevant for purposes of this certificate;

	 
	 
	 

	 
	(iv)
	in our opinion, we have made such examination or investigation as is necessary to enable us to express an informed opinion as to whether or not such conditions have been complied with; and

	 
	 
	 

	 
	(v)
	on the basis of the foregoing, we are of the opinion that all conditions precedent

	 
	 
	 

7

	
			
	 
	 
	provided for in the Indenture relating to the action proposed to be taken by the Trustee as requested herein have been complied with.

8

Kindly acknowledge receipt of this Company Order and Officers’ Certificate, including the documents listed herein, and confirm the arrangements set forth herein by signing and returning the copy of this document attached hereto.

IN WITNESS WHEREOF, the Company has caused this Instrument to be executed.

	
	
	Very truly yours,

	 

	AEP TRANSMISSION COMPANY, LLC

	 

	 

	By:  /s/ Lonni L. Dieck

	Lonni L. Dieck

	Treasurer

	 

	 

	And:  /s/ Thomas G. Berkemeyer

	Thomas G. Berkemeyer

	Assistant Secretary

	 

	 

	Acknowledged by Trustee:

	 

	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
              as Trustee

	 

	 

	By: /s/ Mary Callahan

	            Authorized Signatory

9

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