Document:

EX-4.242

Exhibit 4-242

	 	 	 
	 
	  Executed in 69 Counterparts             
	of which this is Counterpart No. ___  

 

FORTIETH

SUPPLEMENTAL INDENTURE

TO

INDENTURE OF MORTGAGE AND

DEED OF TRUST

DATED AS OF MARCH 1, 1944

 

AS RESTATED IN

PART II OF THE TWENTY-NINTH

SUPPLEMENTAL INDENTURE DATED AS OF JULY 15, 1989

WHICH BECAME EFFECTIVE ON APRIL 1, 1994

 

MICHIGAN CONSOLIDATED GAS COMPANY

TO

CITIBANK, N.A.,

TRUSTEE

DATED AS OF JUNE 1, 2008

 

CREATING AN ISSUE OF FIRST MORTGAGE BONDS,

DESIGNATED AS

2008 SERIES F COLLATERAL BONDS

 

 

 

MICHIGAN CONSOLIDATED GAS COMPANY

FORTIETH SUPPLEMENTAL INDENTURE

DATED AS OF JUNE 15, 2008

SUPPLEMENTAL TO INDENTURE OF MORTGAGE

AND DEED OF TRUST

DATED AS OF MARCH 1, 1944

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE
	ARTICLE I ESTABLISHMENT OF AN ISSUE OF FIRST MORTGAGE BONDS, OF THE SERIES DESIGNATED AND
DISTINGUISHED AS “2008 SERIES F BONDS”
	 	 	4	 
	 
	 	 	 	 
	SECTION 1
	 	 	4	 
	SECTION 2
	 	 	10	 
	SECTION 3
	 	 	10	 
	SECTION 4
	 	 	10	 
	SECTION 5
	 	 	11	 
	 
	 	 	 	 
	ARTICLE IV ISSUE OF COLLATERAL BONDS
	 	 	11	 
	 
	 	 	 	 
	ARTICLE V THE TRUSTEE
	 	 	11	 
	 
	 	 	 	 
	ARTICLE VI RECORDING AND FILING OF SUPPLEMENTAL INDENTURE DATED AS OF APRIL 1, 2008
	 	 	12	 
	 
	 	 	 	 
	ARTICLE VII MISCELLANEOUS PROVISIONS
	 	 	13	 

2

 

     THIS FORTIETH SUPPLEMENTAL INDENTURE, dated as of the 1st day of June, 2008,
between MICHIGAN CONSOLIDATED GAS COMPANY, a corporation duly organized and existing under and by
virtue of the laws of the State of Michigan (hereinafter called the “Company”), having its
principal place of business at 2000 2nd Avenue, Detroit, Michigan, and CITIBANK, N.A., a
national banking association incorporated and existing under and by virtue of the laws of the
United States of America, having an office at 388 Greenwich Street in the Borough of Manhattan, the
City of New York, New York, as successor trustee (hereinafter with its predecessors as trustee
called the “Mortgage Trustee” or the “Trustee”):

     WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture of
Mortgage and Deed of Trust (the “Original Indenture”), dated as of March 1, 1944;

     WHEREAS, the Company has heretofore executed and delivered to the Trustee the Twenty-ninth
Supplemental Indenture, which became effective April 1, 1994, to provide for the modification and
restatement of the Original Indenture as previously amended (as so amended, supplemented and
modified the “Indenture”), and to secure the Company’s First Mortgage Bonds, unlimited in aggregate
principal amount except as therein otherwise provided, issued pursuant to the:

Thirtieth Supplemental Indenture, dated as of September 1, 1991;

Thirty-first Supplemental Indenture, dated as of December 15, 1991;

Thirty-second Supplemental Indenture, dated as of January 5, 1993;

Thirty-third Supplemental Indenture, dated as of May 1, 1995;

Thirty-fourth Supplemental Indenture, dated as of November 1, 1996;

Thirty-fifth Supplemental Indenture, dated as of June 18, 1998;

Thirty-sixth Supplemental Indenture, dated as of August 15, 2001;

Thirty-seventh Supplemental Indenture, dated as of February 15, 2003;

Thirty-eighth Supplemental Indenture, dated as of October 1, 2004;

Thirty-ninth Supplemental Indenture, dated as of April 1, 2008; and

     WHEREAS, at the date hereof there were outstanding First Mortgage Bonds of the Company issued
under the Indenture, of 9 series in the principal amounts set forth below (including Collateral
Bonds):

	 	 	 	 	 	 	 	 	 
	 	 	Amount	 	Amount
	Designation of Series	 	Initially Issued	 	Outstanding
	First Mortgage Bonds

(Secured Term Notes, Series B)

81/4% Series due 2014
	 	$	80,000,000	 	 	$	80,000,000	 
	 
	 	 	 	 	 	 	 	 
	First Mortgage Bonds

(Secured Medium-Term Notes, Series B)

7.06% Series due 2012
	 	$	40,000,000	 	 	$	40,000,000	 
	 
	 	 	 	 	 	 	 	 
	Collateral Bonds

(Remarketable Securities)

Collateral Series A
	 	$	75,000,000	 	 	$	75,000,000	 

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	 	 	Amount	 	Amount
	Designation of Series	 	Initially Issued	 	Outstanding
	Collateral Bonds

(Senior Notes)

61/8% Collateral Bonds due 2008
	 	$	200,000,000	 	 	$	200,000,000	 
	5.70% Collateral Bonds due 2033
	 	$	200,000,000	 	 	$	200,000,000	 
	2004 Series E Collateral Bonds
	 	$	120,000,000	 	 	$	120,000,000	 
	2008 Series A Collateral Bonds
	 	$	60,000,000	 	 	$	60,000,000	 
	2008 Series B Collateral Bonds
	 	$	100,000,000	 	 	$	100,000,000	 
	2008 Series C Collateral Bonds
	 	$	25,000,000	 	 	$	25,000,000	 

     WHEREAS, the Company desires in and by this Supplemental Indenture to establish an issue of
bonds to be issued under the Indenture of the series established under the Thirty-fifth
Supplemental Indenture, to designate the terms thereof, to specify the particulars necessary to
describe and define the same and to specify such other provisions and agreements in respect thereof
as are in the Indenture provided or permitted; and

     WHEREAS, all the conditions and requirements necessary to make this Supplemental Indenture,
when duly executed and delivered, a valid, binding and legal instrument in accordance with its
terms and for the purposes herein expressed, have been done, performed and fulfilled, and the
execution and delivery of this Supplemental Indenture in the form and with the terms hereof have
been in all respects duly authorized;

     NOW, THEREFORE, in consideration of the premises and in further consideration of the sum of
One Dollar in lawful money of the United States of America paid to the Company by the Trustee at or
before the execution and delivery of this Fortieth Supplemental Indenture, the receipt whereof is
hereby acknowledged, and of other good and valuable consideration, it is agreed by and between the
Company and the Trustee as follows:

ARTICLE I

ESTABLISHMENT OF AN ISSUE OF

FIRST MORTGAGE BONDS, OF THE SERIES

DESIGNATED AND DISTINGUISHED AS “COLLATERAL BONDS”

     SECTION 1. There is hereby established an issue of bonds to be issued under and secured by the
Indenture, to be known as “First Mortgage Bonds,” designated and distinguished as “Collateral
Bonds” of the Company (herein collectively sometimes called the “Collateral Bonds”) of the series
established under the Thirty-fifth Supplemental Indenture. The Collateral Bonds may be issued
without limitation as to aggregate principal amount except as provided in the Indenture (including
the Thirty-fifth Supplemental Indenture) and in this Supplemental Indenture. The Collateral Bonds
shall be registered bonds without coupons and shall be dated as of the date of the authentication
thereof by the Mortgage Trustee.

     A separate issue of Collateral Bonds, designated “2008 Series F Collateral Bonds,” (the
“Series F Bonds”) is being issued by the Company hereunder contemporaneously with the issuance of a
separate series of senior debt securities of the Company designated as the Company’s “6.78% Senior
Notes, 2008 Series F due 2028” (the “Series F Notes”) and is being
issued and assigned and delivered to Citibank, N.A., as trustee (in such capacity, together
with

4

 

any successor trustee(s), the “Senior Trustee”) under the Indenture, dated as of June 1, 1998,
as amended, supplemented and modified, governing such senior debt securities (as so amended,
supplemented and modified, the “Senior Indenture”), in such capacity, as collateral for the benefit
of the holders of the Series F Notes. The series of such senior debt securities collateralized by
the Series F Bonds issued hereunder shall be referred to as the “Series F Notes” with respect to
such Series F Bonds.

     The issue of the Series F Bonds established hereby shall bear interest at such rate or rates
and be payable on such date or dates, shall mature and be subject to mandatory or optional
redemption on such date or dates and shall have such other terms and provisions not inconsistent
with the Indenture as are set forth in the form of Series F Bonds, and the form of Trustee’s
Certificate to be endorsed on such bonds, as are set forth substantially in the following forms
respectively (herein sometimes called the “Series F Bond Form”):

			
	 	 	 
	No. R-1
	 	Principal Amount
	 	 	 
	 
	 	$75,000,000

MICHIGAN CONSOLIDATED GAS COMPANY

FIRST MORTGAGE BONDS, 2008 SERIES F COLLATERAL BONDS

being a series of

FIRST MORTGAGE BONDS

ORIGINAL ISSUE DATE: JUNE 26, 2008

MATURITY DATE: JUNE 15, 2028

THE FIRST MORTGAGE BONDS, 2008 SERIES F COLLATERAL BONDS (HEREINAFTER, “SERIES F BONDS”),
REPRESENTED BY THIS CERTIFICATE ARE BEING ISSUED AND DELIVERED BY THE COMPANY TO CITIBANK, N.A., AS
TRUSTEE (IN SUCH CAPACITY, THE “SENIOR TRUSTEE”) UNDER AN INDENTURE, DATED AS OF JUNE 1, 1998,
BETWEEN THE COMPANY AND THE SENIOR TRUSTEE, AS AMENDED, SUPPLEMENTED AND MODIFIED FROM TIME TO TIME
AND AS SUPPLEMENTED BY THE SUPPLEMENTAL INDENTURE THERETO DATED AS OF JUNE 1, 2008 (THE “NOTE
INDENTURE”) (AS SO AMENDED, SUPPLEMENTED AND MODIFIED, THE “SENIOR INDENTURE”). THE SERIES F BONDS
ARE TO BE HELD IN TRUST AS COLLATERAL FOR THE BENEFIT OF THE HOLDERS OF $75,000,000 AGGREGATE
PRINCIPAL AMOUNT OF 6.78% SENIOR NOTES, 2008 SERIES F DUE 2028 (THE “SERIES F NOTES”) ISSUED
PURSUANT TO THE SENIOR INDENTURE. THE SERIES F NOTES ARE THE “RELATED NOTES” WITH RESPECT TO THE
SERIES F BONDS WITHIN THE MEANING OF THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

THE SERIES F BONDS MAY NOT BE SOLD OR OTHERWISE TRANSFERRED (EXCEPT TO A SUCCESSOR TRUSTEE UNDER
THE SENIOR INDENTURE OR, SUBJECT TO COMPLIANCE WITH APPLICABLE LAW, AS MAY BE INVOLVED IN THE
COURSE OF THE EXERCISE OF RIGHTS AND REMEDIES CONSEQUENT UPON AN EVENT OF DEFAULT UNDER THE SENIOR
INDENTURE) UNTIL THE EARLIER OF THE RELEASE DATE (AS

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DEFINED BELOW) OR THE PRIOR RETIREMENT OF THE RELATED NOTES THROUGH REDEMPTION, REPURCHASE OR
OTHERWISE.

THE INTEREST RATE ON THE SERIES F BONDS SHALL AT ALL TIMES BE IDENTICAL TO THAT OF, AND SHALL BE
ESTABLISHED IN THE MANNER SET FORTH IN, THE SERIES F NOTES.

THE INTEREST PAYMENT DATES IN RESPECT OF THE SERIES F BONDS SHALL AT ALL TIMES BE IDENTICAL TO
THOSE OF, AND SHALL BE ESTABLISHED IN THE MANNER SET FORTH IN, THE SERIES F NOTES.

THE COMPANY SHALL MAKE PAYMENTS OF THE PRINCIPAL OF, AND MAKE-WHOLE AMOUNT (AS DEFINED IN THE
SENIOR INDENTURE), IF ANY, AND INTEREST ON, THE SERIES F BONDS, TO THE SENIOR TRUSTEE, WHICH
PAYMENTS SHALL BE APPLIED BY THE SENIOR TRUSTEE TO THE SATISFACTION OF OBLIGATIONS ON THE SERIES F
NOTES.

IN ADDITION TO THE PAYMENT OF PRINCIPAL AND INTEREST ON THE SERIES F BONDS IN THE EVENT ANY
MAKE-WHOLE AMOUNT (AS DEFINED IN THE SENIOR INDENTURE) SHALL BE REQUIRED TO BE PAID BY THE COMPANY
ON THE SERIES F NOTES, THERE SHALL BE DUE AND PAYABLE ON THE SERIES F BONDS AN ADDITIONAL AMOUNT
EQUAL TO SUCH MAKE-WHOLE AMOUNT WHICH SHALL BE PAID BY THE COMPANY IN THE AMOUNTS AND ON THE DATES
REQUIRED FOR THE PAYMENT OF ANY SUCH AMOUNTS UNDER THE SENIOR INDENTURE.

THE MATURITY DATE SPECIFIED ABOVE IS ALSO THE MATURITY DATE OF THE SERIES F NOTES.

     MICHIGAN CONSOLIDATED GAS COMPANY (hereinafter called the “Company”), a corporation of the
State of Michigan, for value received, hereby promises to pay to CITIBANK, N.A., as trustee for the
benefit of the holders of the Series F Notes, or registered assigns (in such capacity, the “Senior
Trustee”), the sum of Seventy-five Million Dollars ($75,000,000) on the Maturity Date specified
above, at the corporate trust office of the Mortgage Trustee hereinafter named in the Borough of
Manhattan, the City of New York, New York, or at the principal office of any successor in trust, in
lawful money of the United States of America, and to pay interest thereon at the Interest Rate(s)
from time to time specified in or determined pursuant to the Series F Notes, in like lawful money
payable at the office or agency of the Company in the Borough of Manhattan, the City of New York,
New York on such interest payment date(s) and on the Maturity Date (each an “Interest Payment
Date”) as provided in the Series F Notes, from the Original Issue Date specified above or from the
most recent Interest Payment Date to which interest has been paid, commencing on December 15, 2008,
until the Company’s obligation with respect to the payment of such principal sum shall be
discharged as provided in the Indenture hereinafter mentioned and the Senior Indenture. If the
date of the Series F Bonds represented by this certificate is after a Record Date (as defined
below) with respect to any Interest Payment Date and prior to such Interest Payment Date, then
payment of interest shall commence on the second Interest Payment Date succeeding such date. If
the Company shall default in the payment of interest due on any Interest Payment Date, then
interest shall be payable from the next preceding Interest Payment Date to which interest has been
paid, or, if no such interest has been paid on the Series F Bonds represented by this certificate,
from the Original Issue Date. So long as there is no existing default in the payment of interest,
the person in whose name the Series F Bonds

6

 

represented by this certificate were registered at the close of business on the relevant
Record Date with respect to an Interest Payment Date shall be entitled to receive the interest
payable on such Interest Payment Date, except that if the Company shall default in the payment of
interest due on such Interest Payment Date, such defaulted interest shall be paid to the person in
whose name the Series F Bonds represented by this Certificate are registered on the Record Date for
the Interest Payment Date fixed by the Company for the payment of such defaulted interest, provided
that in no case shall such Record Date be less than ten days after notice thereof shall have been
mailed to all registered holders of Series F Bonds. The term “Record Date” as used herein with
respect to any Interest Payment Date otherwise shall mean the fifteenth calendar day (whether or
not a Business Day) prior to such Interest Payment Date.

     “Business Day” means any day other than a day on which banking institutions in the State of
New York or the State of Michigan are authorized or obligated pursuant to law or executive order to
close. In the event that any Interest Payment Date, redemption date or maturity date is not a
Business Day, then the required payment of principal, Make-Whole Amount, if any, and interest will
be made on the next succeeding day that is a Business Day (and without any interest or other
payment in respect of any such delay).

     The bonds represented by this certificate, of the series hereinafter specified, are bonds of
the Company (herein called the “bonds”) known as its “First Mortgage Bonds,” issued and to be
issued in one or more series under, and all equally and ratably secured by, an Indenture of
Mortgage and Deed of Trust dated as of March 1, 1944, duly executed by the Company to Citibank,
N.A., successor trustee (“Mortgage Trustee”) as restated in Part II of the Twenty-ninth
Supplemental Indenture dated as of July 15, 1989, which became effective on April 1, 1994, to which
indenture and all indentures supplemental thereto executed on and after July 15, 1989 reference is
hereby made for a description of the property mortgaged and pledged, the nature and extent of the
security, the terms and conditions upon which the bonds are, and are to be, issued and secured, and
the rights of the holders of the bonds and of the Mortgage Trustee in respect of such security
(which indenture and all indentures supplemental thereto, including the Fortieth Supplemental
Indenture dated as of June 1, 2008, are hereinafter collectively called the “Indenture”). As
provided in the Indenture, the bonds may be for various principal sums and are issuable in series,
which may mature at different times, may bear interest at different rates and may otherwise vary as
therein provided. The bonds represented by this certificate are part of a Series designated
“Collateral Bonds,” herein called Collateral Bonds, created by the Thirty-fifth Supplemental
Indenture, dated as of June 18, 1998, as supplemented by the Fortieth Supplemental Indenture dated
as of June 1, 2008, as provided for in the Indenture.

     With the consent of the Company and to the extent permitted by and as provided in the
Indenture and the Senior Indenture, the rights and obligations of the Company and/or the rights of
the holders of the Series F Bonds and/or the terms and provisions of the Indenture may be modified
or altered by such affirmative vote or votes of the holders of the Series F Notes then outstanding
as are specified in the Senior Indenture.

     The Collateral Bonds shall be redeemed if and to the extent Series F Notes are redeemed, as
provided in the Senior Indenture with respect to the Series F Notes and in the Series F Notes.

     In case an Event of Default as defined in the Indenture or the Senior Indenture shall occur,
the principal of the Series F Bonds may become or be declared due and payable in the

7

 

manner, with the effect, and subject to the conditions provided in the Indenture and the
Senior Indenture.

     The Senior Trustee has agreed pursuant to the Senior Indenture to hold the Series F Bonds as
collateral for the benefit of the holders of the Series F Notes under all circumstances and not to
transfer (except to a successor trustee or, subject to compliance with applicable law, as may be
involved in the course of exercise of rights and remedies consequent upon an Event of Default under
the Senior Indenture) such Series F Bonds until the earlier of the Release Date or the prior
retirement of the Series F Notes through redemption, repurchase or otherwise. “Release Date” means
the date on which all First Mortgage Bonds of the Company issued and outstanding under the
Indenture, other than the Collateral Bonds, have been retired (at, before or after the maturity
thereof) through payment, redemption or otherwise provided that no default or event of default has
occurred and, at such time, is continuing under the Senior Indenture. On the Release Date, the
Senior Trustee shall deliver to the Company for cancellation all Series F Bonds, and the Company
shall cause the Senior Trustee to provide notice to all holders of Series F Notes of the occurrence
of the Release Date. As a result, on the Release Date, the Series F Bonds shall cease to secure
the Series F Notes and the Series F Notes instead will be secured by substituted Collateral Bonds.
Following the Release Date, the Company shall cause the Indenture to be closed, and the Company
shall not issue any additional Collateral Bonds thereunder. From and after the Release Date, the
Company’s obligations in respect of the Series F Bonds shall be satisfied and discharged.

     No recourse shall be had for the payment of the principal of, Make-Whole Amount, if any, or
the interest on, the Series F Bonds, or for any claim based hereon or otherwise in respect of the
Series F Bonds or the Indenture, the Senior Indenture or any indenture supplemental to either
thereof, against any incorporator, stockholder, director or officer, past, present or future, of
the Company, as such, or any predecessor or successor corporation, either directly or through the
Company or any such predecessor or successor corporation, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such
liability, whether at common law, in equity, by any constitution, statute or otherwise, of
incorporators, stockholders, directors or officers being waived and released by the owner hereof
and every owner of any Series F Note by the acceptance of the Series F Bonds or such Series F Note,
as the case may be, and as part of the consideration for the issue thereof, and being likewise
waived and released pursuant to the Indenture and the Senior Indenture.

     This bond shall not be valid or become obligatory for any purpose unless and until the
certificate of authentication hereon shall have been manually executed by the Mortgage Trustee or
its successor in trust under the Indenture.

     IN WITNESS WHEREOF, MICHIGAN CONSOLIDATED GAS COMPANY has caused this certificate to be
executed under its name with the signature of its duly authorized Officer, under its corporate
seal, which may be a facsimile, attested with the signature of its Corporate Secretary.

8

 

Dated:

	 	 	 	 	 	 	 
	 	 	MICHIGAN CONSOLIDATED GAS COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

N.A. Khouri
	 	 
	 

	 	 	 	Vice President and Treasurer	 	 

Attest:

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Sandra Kay Ennis
	 	 
	 

	 	Corporate Secretary	 	 

     The bonds represented by this certificate constitute Collateral Bonds of the series designated
and described in the within-mentioned Indenture.

	 	 	 	 	 	 	 
	 

	 	CITIBANK, N.A., as Mortgage Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Officer
	 	 

[End of Bond Form]

     So long as there is no existing default in the payment of interest on the Series F Bonds, all
Series F Bonds authenticated by the Trustee after the Record Date specified for any Interest
Payment Date, and prior to such Interest Payment Date (unless the issue date hereinafter specified
is after such Record Date) shall be dated the date of authentication, but shall bear interest from
such Interest Payment Date, and the person in whose name any Series F Bonds is registered at the
close of business on any Record Date with respect to any Interest Payment Date shall be entitled to
receive the interest payable on such Interest Payment Date notwithstanding any transfer or exchange
of such Series F Bonds subsequent to the Record Date and on or prior to such Interest Payment Date,
except if and to the extent the Company shall default in the payment of the interest due on such
Interest Payment Date, in which case such defaulted interest shall be paid to the person in whose
name such Series F Bonds is registered on the Record Date for the special Interest Payment Date
fixed by the Company for the payment of such defaulted interest, provided that in no case shall
such Record Date be less than ten days after notice thereof shall have been mailed to all
registered holders of Series F Bonds; and provided that interest payable on a maturity date shall
be payable to the person to whom the principal thereof is payable. If the issue date of any Series
F Bonds is after such Record Date, such Series F Bonds shall bear interest from the issue date but
payment of interest shall commence on the second Interest Payment Date next succeeding the issue
date. Any notice which is mailed as herein provided shall be conclusively presumed to have been
properly and sufficiently given on the date of such mailing, whether or not the holder receives
notice.

     The terms “Interest Payment Date”, “Record Date” and “Business Day” as used herein are defined
in the Series F Bond Form.

     The term “issue date” as used herein with respect to the issue of Series F Bonds established
hereby shall mean the date of first authentication of such Series F Bonds.

9

 

     As used in this Section 1, the term “default in the payment of interest” means failure to pay
interest on the applicable Interest Payment Date disregarding any period of grace permitted by
Section 9.01 of the Indenture.

     The Company shall make payments of the principal of, and Make-Whole Amount or interest on, the
Series F Bonds to the Senior Trustee, which payments shall be applied by the Senior Trustee in
satisfaction of obligations on the Series F Notes in respect of such Series F Bonds.

     SECTION 2. The issue of Series F Bonds established hereby shall be redeemed if and to the
extent the Series F Notes are redeemed, as provided in the Senior Indenture and in such Series F
Notes. The redemption price in respect of any Series F Bonds (including principal, Make-Whole
Amount, if any, and interest thereon) shall be the redemption price applicable to the Series F
Notes. Any notice required to be furnished to the holders of the Series F Bonds or the Trustee
relating to the redemption of such Series F Bonds shall be considered furnished by the delivery of
appropriate notice to the holders of the Series F Notes or the Senior Trustee, as the case may be,
as provided in the Senior Indenture and the Series F Notes. Any redemption payment made by the
Company on the Series F Notes (whether for principal, Make-Whole Amount, if any, or interest) shall
be applied by the Senior Trustee as payment of the redemption price in respect of the
correspondingly redeemed Series F Bonds. In the event the Series F Notes are redeemed in part, an
equivalent aggregate principal amount of the Series F Bonds shall be so redeemed, the Senior
Trustee, as holder of the Series F Bonds as collateral for such Series F Notes, shall deliver to
the Mortgage Trustee for cancellation an equivalent principal amount of the Series F Bonds
corresponding to the Series F Notes so redeemed, and the Company shall execute and the Mortgage
Trustee shall authenticate and deliver, without charge, to the Senior Trustee, as holder thereof,
one or more new Series F Bonds of authorized denominations for the unredeemed balance of any Series
F Bonds surrendered for redemption in connection with the redemption of the Series F Notes.

     SECTION 3. The Series F Bonds shall be registered bonds without coupons. The Mortgage Trustee
shall be the registrar and paying agent for the Series F Bonds, which duties it hereby accepts.
Series F Bonds may be issued in the denomination of $1,000 or any integral multiple thereof.

     SECTION 4. As further provided in the Series F Bond Form, the Series F Bonds shall not be
assignable or transferable except as may be set forth under Article IV of the Senior Indenture, or,
subject to compliance with applicable law, as may be involved in the course of the exercise of
rights and remedies consequent upon an Event of Default under the Senior Indenture. Subject to the
foregoing, the Series F Bonds shall be exchangeable upon surrender thereof at the corporate trust
office of the Trustee in the Borough of Manhattan, the City of New York, New York, for registered
bonds of the same aggregate principal amount and other terms, but of different authorized
denomination or denominations, such exchanges to be made without service charge (except for any
stamp tax or other governmental charge).

     Every bond so surrendered shall be accompanied by a proper transfer power duly executed by the
registered owner or by duly authorized attorney transferring such bond to the Company, and the
signature to such transfer power shall be guaranteed to the satisfaction of the Trustee. All bonds
so surrendered shall be forthwith canceled and delivered to or upon the order of the Company. All
bonds executed, authenticated and delivered in exchange for bonds so
surrendered shall be valid obligations of the Company, evidencing the same debt as the bonds

10

 

surrendered, and shall be secured by the same lien and be entitled to the same benefits and
protection as the bonds in exchange for which they are executed, authenticated and delivered.

     The Company shall not be required to make any such exchange or any registration of transfer
(1) during a period of fifteen days next preceding any Interest Payment Date, but only if there is
an existing default in the payment of interest on the Series F Bonds on which such payment is due
or (2) after the bond so presented for exchange or registration of transfer, or any portion
thereof, has been called for redemption and notice thereof given to the registered owner.

     SECTION 5. Pending the preparation of definitive Series F Bonds, the Company may from time to
time execute, and upon its written order, the Trustee shall authenticate and deliver, in lieu of
such definitive bonds and subject to the same provisions, limitations and conditions, one or more
temporary bonds, in registered form, of any denomination specified in the written order of the
Company for the authentication and delivery thereof, and with such omissions, insertions and
variations as may be determined by the Board of Directors of the Company. Such temporary bonds
shall be substantially of the tenor of the bonds to be issued as herein before recited.

     If any such temporary Series F Bonds shall at any time be so authenticated and delivered in
lieu of definitive bonds, the Company shall upon request at its own expense prepare, execute and
deliver to the Trustee and thereupon, upon the presentation and surrender of temporary bonds, the
Trustee shall authenticate and deliver in exchange therefor, without charge to the holder,
definitive bonds of the same series and other terms, if any, and for the same principal sum in the
aggregate as the temporary bonds surrendered. All temporary bonds so surrendered shall be
forthwith canceled by the Trustee and delivered to or upon the order of the Company. Until
exchanged for definitive bonds the temporary bonds shall in all respects be entitled to the lien
and security of the Indenture and all supplemental indentures.

ARTICLE II

ISSUE OF COLLATERAL BONDS

     The Series F Bonds in the aggregate principal amount of $75,000,000 in respect of the Series F
Notes may be executed, authenticated and delivered from time to time as permitted by the provisions
of the Indenture, including with respect to exchange and replacement of bonds.

ARTICLE III

THE TRUSTEE

     The Trustee shall not be responsible in any manner whatsoever for or in respect of the
validity or sufficiency of this Supplemental Indenture or the due execution hereof by the Company,
or for or in respect of the recitals and statements contained herein, all of which recitals and
statements are made solely by the Company.

     Except as herein otherwise provided, no duties, responsibilities or liabilities are assumed,
or shall be construed to be assumed, by the Trustee by reason of this Supplemental Indenture other
than as set forth in the Indenture and this Supplemental Indenture is executed and accepted on
behalf of the Trustee, subject to all the terms and conditions set forth in the Indenture, as fully
to all intents as if the same were herein set forth at length.

11

 

ARTICLE IV

RECORDING AND FILING OF SUPPLEMENTAL INDENTURE

DATED AS OF APRIL1, 2008

     Pursuant to the terms and provisions of the Original Indenture, a Supplemental Indenture dated
as of April 1, 2008 providing for the terms of Collateral Bonds to be issued thereunder designated
as 2008 Series A Collateral Bonds, 2008 Series B Collateral Bonds and the 2008 Series C Collateral
Bonds has heretofore been entered into between the Company and the Trustee and has been filed in
the Office of the Secretary of State of Michigan as a financing statement on April 14, 2008 (Filing
No. 2008056452-1) and has been recorded as a real estate mortgage in the offices of the respective
Register of Deeds of certain counties in the State of Michigan, as follows:

	 	 	 	 	 	 	 
	 	 	 	 	Liber/	 	 
	County	 	Recorded	 	Instrument no.	 	Page
	Alcona
	 	4/14/08	 	451	 	667
	Alger
	 	4/15/08	 	200800817	 	N/A
	Alpena
	 	4/11/08	 	464	 	835
	Antrim
	 	4/11/08	 	779	 	540
	Arenac
	 	4/11/08	 	528	 	681
	Barry
	 	4/11/08	 	20080411-0003950	 	N/A
	Benzie
	 	4/11/08	 	2008R-02018	 	N/A
	Charlevoix
	 	4/11/08	 	843	 	949
	Cheboygan
	 	4/11/08	 	1095	 	537
	Chippewa
	 	4/14/08	 	1050	 	450
	Clare
	 	4/11/08	 	1074	 	833
	Clinton
	 	4/11/08	 	5129858	 	N/A
	Crawford
	 	4/11/08	 	691	 	295
	Delta
	 	4/14/08	 	913	 	317
	Dickinson
	 	4/14/08	 	649	 	722
	Emmet
	 	4/11/08	 	1101	 	428
	Gladwin
	 	4/11/08	 	864	 	410
	Grand Traverse
	 	4/11/08	 	2008R-06348	 	N/A
	Gratiot
	 	4/11/08	 	848	 	1
	Ionia
	 	4/11/08	 	607	 	7782
	Iosco
	 	4/11/08	 	947	 	825
	Iron
	 	4/14/08	 	512	 	145
	Isabella
	 	4/11/08	 	1436	 	498
	Jackson
	 	4/11/08	 	1897	 	916
	Kalkaska
	 	4/11/08	 	3084928	 	N/A
	Kent
	 	4/14/08	 	20080414-0036275	 	N/A
	Lake
	 	4/16/08	 	325	 	374
	Leelanau
	 	4/14/08	 	974	 	900
	Lenawee
	 	4/11/08	 	2362	 	699
	Livingston
	 	4/11/08	 	2008R-012695	 	N/A
	Macomb
	 	4/15/08	 	19286	 	883
	Manistee
	 	4/11/08	 	2008R002162	 	N/A
	Marquette
	 	4/14/08	 	2008R-04016	 	N/A
	Mason
	 	4/11/08	 	2008R02193	 	N/A

12

 

	 	 	 	 	 	 	 
	 	 	 	 	Liber/	 	 
	County	 	Recorded	 	Instrument no.	 	Page
	Mecosta
	 	4/11/08	 	775	 	475
	Menominee
	 	4/11/08	 	632	 	243
	Missaukee
	 	4/11/08	 	2008-01140	 	N/A
	Monroe
	 	4/11/08	 	2008R07751	 	N/A
	Montcalm
	 	4/11/08	 	1402	 	0309
	Montmorency
	 	4/11/08	 	300	 	610
	Muskegon
	 	4/11/08	 	3775	 	17
	Newaygo
	 	4/11/08	 	430	 	7726
	Oakland
	 	4/11/08	 	40216	 	001
	Oceana
	 	4/14/08	 	2008	 	8189
	Ogemaw
	 	4/11/08	 	3079044	 	N/A
	Osceola
	 	4/11/08	 	860	 	560
	Oscoda
	 	4/14/08	 	208-01218	 	N/A
	Otsego
	 	4/11/08	 	1169	 	92
	Ottawa
	 	4/11/08	 	5635	 	2
	Presque Isle
	 	4/11/08	 	461	 	536
	Roscommon
	 	4/16/08	 	1070	 	1733
	St. Clair
	 	4/11/08	 	3834	 	7
	Saginaw
	 	4/11/08	 	2008009623	 	N/A
	Shiawassee
	 	4/11/08	 	1121	 	671
	Washtenaw
	 	4/11/08	 	4676	 	902
	Wayne
	 	5/6/08	 	47213	 	194
	Wexford
	 	4/11/08	 	610	 	1256

ARTICLE V

MISCELLANEOUS PROVISIONS

     Except insofar as herein otherwise expressly provided, all the provisions, terms and
conditions of the Indenture shall be deemed to be incorporated in, and made a part of, this
Fortieth Supplemental Indenture, and the Twenty-ninth Supplemental Indenture dated as of July 15,
1989, as supplemented by the Thirtieth Supplemental Indenture dated as of September 1, 1991, by the
Thirty-first Supplemental Indenture dated as of December 15, 1991, by the Thirty-second
Supplemental Indenture dated as of January 5, 1993, by the Thirty-third Supplemental Indenture
dated as of May 1, 1995, by the Thirty-fourth Supplemental Indenture dated as of November 1, 1996,
by the Thirty-fifth Supplemental Indenture dated as of June 18, 1998, by the Thirty-sixth
Supplemental Indenture dated as of August 15, 2001, by the Thirty-seventh Supplemental Indenture
dated as of February 15, 2003, by the Thirty-eighth Supplemental Indenture dated as of October 1,
2004, Thirty-ninth Supplemental Indenture dated as of April 1, 2008 and by this Supplemental
Indenture is in all respects ratified and confirmed; and the Indenture and said Supplemental
Indentures shall be read, taken and construed as one and the same instrument.

     Except to the extent specifically provided therein, no provision of this Supplemental
Indenture or any future supplemental indenture is intended to modify, and the parties do hereby
adopt and confirm, the provisions of Section 318(c) of the Trust Indenture Act, which amend and
supersede provisions of the Indenture in effect prior to November 15, 1990.

13

 

     Nothing in this Supplemental Indenture is intended, or shall be construed, to give to any
person or corporation, other than the parties hereto and the holders of Collateral Bonds issued and
to be issued under and secured by the Indenture, any legal or equitable right, remedy or claim
under or in respect of this Supplemental Indenture, or under any covenant, condition or provision
herein contained, all the covenants, conditions and provisions of this Supplemental Indenture being
intended to be, and being, for the sole and exclusive benefit of the parties hereto and of the
holders of bonds issued and to be issued under the Indenture and secured thereby.

     All covenants, promises and agreements in this Supplemental Indenture contained by or on
behalf of the Company shall bind its successors and assigns whether so expressed or not.

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

14

 

     IN WITNESS WHEREOF, MICHIGAN CONSOLIDATED GAS COMPANY has caused this Supplemental Indenture
to be executed by its duly authorized Officer, and its corporate seal to be hereunto affixed, and
Citibank, N.A., as Mortgage Trustee as aforesaid, has caused the same to be executed by one of its
authorized signatories and its corporate seal to be hereunto affixed, on the respective dates of
their acknowledgments hereinafter set forth, as of the date and year first above written.

MICHIGAN CONSOLIDATED GAS COMPANY

	 	 	 	 	 
	By:

	 	/s/ Paul A. Stadnikia
 

Paul A. Stadnikia
	 	 
	 

	 	Assistant Treasurer	 	 

Signed, sealed, acknowledged and

delivered by MICHIGAN CONSOLIDATED

GAS COMPANY in the presence of:

/s/ Anthony G. Morrow                    

Anthony G. Morrow

/s/
Timothy J. Maloche                    

Timothy J. Maloche

	 	 	 
	State of Michigan

	 	}
	 

	} ss.	 
	County of Wayne

	 	}

     The foregoing instrument was acknowledged before me this 6th day of June, 2008, by
Paul A. Stadnikia, as Assistant Treasurer, of MICHIGAN CONSOLIDATED GAS COMPANY, a Michigan
corporation, on behalf of the corporation.

/s/ Stephanie V. Washio                    

Stephanie V. Washio

Notary Public, Wayne County, MI

Acting in Wayne County, MI

My Commission Expires: May 18, 2012

15

 

CITIBANK, N.A., as Mortgage Trustee

	 	 	 	 	 
	By:

	 	/s/ Wafaa Orfy
 

Wafaa Orfy
	 	 
	 

	 	Vice President	 	 

Signed, sealed, acknowledged and

delivered by CITIBANK, N.A.

in the presence of:

/s/ Cirino Emanuele                    

Name: Cirino Emanuele

           Vice President

/s/ Marion O’Connor                    

Name: Marion O’Connor

           Vice President

	 	 	 
	State of New York

	 	}
	 

	 	} ss.
	County of New York

	 	}

     The foregoing instrument was acknowledged before me this 20th day of June, 2008, by
Wafaa Orfy, as Vice President of Citibank, N.A., a national banking association, on behalf of the
association, as Trustee, as in said instrument described.

/s/ Zenaida Santiago                         

Notary Public, State of New York

No. 01SA6152564

Qualified in Kings County

Commission Expires:9-18-2010

16

 

This instrument was drafted by:

Timothy J. Maloche

2000 2nd Avenue, 688WCB

Detroit, MI 48226

When recorded return to:

Stephanie V. Washio

2000 2nd Avenue, 688WCB

Detroit, MI 48226

17EX-4.243

Exhibit 4-243

 

SEVENTH SUPPLEMENTAL INDENTURE

FROM

MICHIGAN CONSOLIDATED GAS COMPANY

TO

CITIBANK, N.A.

TRUSTEE

 

Dated as of June 1, 2008

SUPPLEMENT TO INDENTURE

Dated as of June 1, 1998

Providing for

6.78% Senior Notes, 2008 Series F due 2028

      

 

 

     This SEVENTH SUPPLEMENTAL INDENTURE is made as of the 1st day of JUNE, 2008, by and between
MICHIGAN CONSOLIDATED GAS COMPANY, a corporation duly organized and existing under the laws of the
State of Michigan (the “Company”), and CITIBANK, N.A., a national banking association incorporated
and existing under and by virtue of the laws of the United States of America, as trustee (the
“Trustee”).

RECITALS OF THE COMPANY:

     WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture, dated
as of June 1, 1998 (the “Original Indenture”), as amended, supplemented and modified (as so
amended, supplemented and modified, the “Indenture”), providing for the issuance by the Company
from time to time of its senior debt securities (the “Securities”); and

     WHEREAS, the Company desires to provide for the issuance of a series of its Securities
pursuant to the Indenture; and

     WHEREAS, the Company, in the exercise of the power and authority conferred upon and
reserved to it under the provisions of the Original Indenture, including Section 10.1 thereof, and
pursuant to appropriate resolutions of the Board of Directors, has duly determined to make, execute
and deliver to the Trustee this Supplemental Indenture to the Original Indenture as permitted by
Section 2.1 and Section 3.1 of the Original Indenture in order to establish the form or terms of,
and to provide for the creation and issue of a series of its Securities under the Original
Indenture, which shall be known as the “6.78% Senior Notes, 2008 Series F due 2028” (the “Senior
Notes”); and

     WHEREAS, all things necessary to make such Securities, when executed by the Company
and authenticated and delivered by the Trustee or any Authenticating Agent and issued upon the
terms and subject to the conditions hereinafter and in the Original Indenture set forth against
payment therefor, the valid, binding and legal obligations of the Company and to make this
Supplemental Indenture a valid, binding and legal agreement of the Company, have been done;

     NOW, THEREFORE, in order to establish the terms of a series of Securities, and for
and in consideration of the premises and of the covenants contained in the Original Indenture and
in this Supplemental Indenture and for other good and valuable consideration the receipt and
sufficiency of which are hereby acknowledged, it is mutually covenanted and agreed as follows:

Article I

RELATION TO INDENTURE; DEFINITIONS

     Section 1.01.

     This Supplemental Indenture constitutes an integral part of the Indenture.

     Section 1.02.

2

 

     For all purposes of this Supplemental Indenture:

     (a) Capitalized terms used but not otherwise defined herein shall have the respective meanings
assigned to such terms in the Indenture;

     (b) All references herein to Articles and Sections, unless otherwise specified, refer to the
corresponding Articles and Sections of this Supplemental Indenture; and

     (c) The terms “hereof,” “herein,” “hereby,” “hereto,” “hereunder,” and “herewith” refer to
this Supplemental Indenture.

     (d) The following terms shall have the meaning set forth below:

          “Institutional Investor” has the meaning set forth in the Purchase Agreement.

          “Original Issue Date” means June 26, 2008.

          “Purchase Agreement” means the Note Purchase Agreement dated as of April 11, 2008,
among the Company and the several initial purchasers named therein.

          “Restricted Securities Legend” means the legend set forth in Section 2.03(b) herein.

          “Securities Act” means the Securities Act of 1933, as amended.

Article II

THE SECURITIES

     Section 2.01. Title of the Securities; Stated Maturity.

     This Supplemental Indenture hereby establishes a series of Securities, known as and entitled
“6.78% Senior Notes, 2008 Series F due 2028”. The aggregate principal amount of the Senior Notes
shall be limited initially to Seventy-five Million Dollars ($75,000,000), (except for Senior Notes
authenticated and delivered upon transfer of, or in exchange for, or in lieu of, other Senior
Notes).

     The Senior Notes issued on the Original Issue Date will be sold by the Company pursuant to the
Purchase Agreement.

     The Senior Notes are not subject to repayment at the option of Holders thereof and are not
subject to any sinking fund. As provided in the form of Senior Notes attached hereto as Appendix
I, the Senior Notes are subject to optional redemption, as a whole or in part, by the Company prior
to the Stated Maturity of the principal thereof on the terms set forth therein. Except as modified
in the form of the Senior Notes, redemptions shall be effected in accordance with Article Twelve of
the Original Indenture.

3

 

     The Senior Notes shall have such other terms and provisions as are set forth in the form of
the Senior Notes attached hereto as Appendix I (which is incorporated by reference in and made a
part of this Supplemental Indenture as if set forth in full at this place).

     Section 2.02. Amount and Denominations

     The Senior Notes shall be issuable only in fully registered form and, as permitted by Section
3.1 and Section 3.2 of the Original Indenture, in denominations of $1,000 and integral multiples
thereof.

     Section 2.03. Transfer and Exchange.

     (a) Transfer and Exchange of Definitive Securities. When Securities evidencing the Senior
Notes are presented to the Security Registrar with a request:

          (i) to register the transfer of such Securities; or

          (ii) to exchange such Securities for Securities of the same series of any authorized
denominations of the same aggregate principal amount and Stated Maturity, the Security Registrar
shall register the transfer or make the exchange as requested if its reasonable requirements for
such transaction are met; provided, however, that the Securities surrendered for transfer or
exchange:

       (A) shall be duly endorsed or be accompanied by a written instrument of transfer in form
reasonably satisfactory to the Company and the Security Registrar, duly executed by the
Holder thereof or his attorney duly authorized in writing; and

       (B) are accompanied by the following additional information and documents, as
applicable:

          (x) if such Securities are being delivered to the Security Registrar by a Holder for
registration in the name of such Holder, without transfer, a certification from such
Holder to that effect (in the form set forth on the reverse side of the Transfer
Restricted Security); or

          (y) if such Securities are being transferred to the Company, a certification to that
effect (in the form set forth on the reverse side of the Transfer Restricted Security);
or

          (z) if such Securities are being transferred pursuant to an exemption from
registration in accordance with Rule 144 under the Securities Act or in reliance upon
another exemption from the registration requirements of the Securities Act, (i) a
certification to that effect (in the form set forth on the reverse side of the Transfer
Restricted Security) and (ii) if the Company so

4

 

requests, other evidence reasonably satisfactory to it as to the compliance with the
restrictions set forth in the legend set forth in Section 2.03(b).

     In case of redemption, the Company shall not be required (i) to issue, register the transfer
of or exchange Senior Notes of any series during a period beginning at the opening of business 15
days before any selection of Senior Notes of that series to be redeemed and ending at the close of
business on the day of the mailing of the relevant notice of redemption, or (ii) to register the
transfer of or exchange any Senior Notes so selected for redemption, in whole or in part, except
the unredeemed portion of any Senior Notes being redeemed in part.

     (b) Legends for Securities. Each Security certificate evidencing the Senior Notes (and all
Securities issued in exchange therefor or in substitution thereof) shall bear a legend in
substantially the following form (each defined term in the legend being defined as such for
purposes of the legend only):

     THE NOTES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”) AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
EXCEPT (A) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND (B) IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES. IN CONNECTION
WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES
AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER
COMPLIES WITH THE FOREGOING RESTRICTIONS.

Article III

DELIVERY AND TRANSFER OF 2008 SERIES F COLLATERAL BONDS

     The Company hereby delivers and transfers to the Trustee in connection with the issuance of
the Senior Notes, Seventy-five Million Dollars ($75,000,000) aggregate principal amount of a
related issue of Collateral Bonds of the Company designated “2008 Series F Collateral Bonds” (the
“Series F Bonds” and, together with all other First Mortgage Bonds issued under the First Mortgage
Indenture as security for Securities issued under the Indenture, “Collateral Bonds”), which has
been fully registered in the name of the Trustee in such capacity, to be held in trust for the
benefit of the Holders from time to time of the Senior Notes as security for any and all
obligations of the Company in respect of the Senior Notes under the Indenture, this Supplemental
Indenture and the Senior Notes, including but not limited to (1) the full and prompt payment of the
interest on, principal of, and Make-Whole Amount, if any, on the Senior Notes when and as the same
shall become due and payable in accordance with the terms and provisions of the Indenture and this
Supplemental Indenture and the Senior Notes, either at the Stated Maturity, upon acceleration of
the maturity or upon redemption of the Senior Notes, and (2) the full and prompt payment of any
interest on the Senior Notes when and as the same shall become due and payable in accordance with
the terms and provisions of the Indenture and this Supplemental Indenture and the

5

 

Senior Notes. The Trustee shall enforce all of its rights under the First Mortgage Indenture
as a holder of the Series F Bonds transferred to it as provided in this Article III for the benefit
of the Holders of the Senior Notes and the proceeds of the enforcement of such rights shall be
applied by the Trustee to satisfy the Company’s obligations under the Indenture, this Supplemental
Indenture and the Senior Notes. The Series F Bonds are the “Related Issue of Collateral Bonds”
with respect to the Senior Notes within the meaning of the Indenture.

     The Company shall make payments of the principal of, and Make-Whole Amount or interest on, the
Series F Bonds to the Trustee, which payments shall be applied by the Trustee in satisfaction of
all obligations then due on the Senior Notes.

     The Series F Bonds shall not be sold or transferred by the Trustee until the earlier of the
Release Date or the prior retirement of the Senior Notes through redemption, repurchase or
otherwise. The “Release Date” shall be the date that all First Mortgage Bonds of the Company
issued and outstanding under the First Mortgage Indenture, other than the Collateral Bonds, have
been retired (at, before or after the maturity thereof) through payment, redemption or otherwise,
provided that no Default or Event of Default has occurred and, at such time, is continuing under
the Indenture.

Article IV

COVENANTS

     Section 4.01. Limitation on Liens

     The covenant set forth in Section 11.10 of the Original Indenture shall apply to the Senior
Notes only from and after the Release Date (unless Substituted Collateral Bonds are issued to
secure the Senior Notes from and after the Release Date in which case such covenant shall not
apply); provided, that, in any case, the Company may issue, assume or guarantee Indebtedness
secured by a Lien not otherwise permitted under Section 11.10 so long as it effectively secures the
Senior Notes equally and ratably with such Indebtedness.

     Section 4.02. Limitation on Sale and Leaseback Transactions

     The covenant set forth in Section 11.11 of the Original Indenture shall apply to the Senior
Notes only from and after the Release Date (unless Substituted Collateral Bonds are issued to
secure the Senior Notes from and after the Release Date in which case such covenant shall not
apply).

     Section 4.03. Substituted Collateral Bonds

     The Company covenants and agrees that:

     (a) It shall notify the Trustee not less than 90 days prior to the anticipated Release Date
that on the Release Date the Company will cause Substituted Collateral Bonds and an associated
supplemental indenture to be delivered to the Trustee in

6

 

accordance with Section 4.9 of the Original Indenture as security for the Securities issued
under the Indenture.

     (b) On or prior to the Release Date,

     (i) the Company shall have delivered to the Trustee as security for the Securities then
Outstanding under the Indenture, including the Senior Notes, Substituted Collateral Bonds
complying with the provisions of Section 4.9 of the Original Indenture, such Substituted
Collateral Bonds being issued

     (A) in an aggregate principal amount at least equal to the aggregate principal amount of
Securities then Outstanding under the Indenture, and

     (B) in series corresponding to the Series of Securities then Outstanding under the
Indenture, and each such series of Substituted Collateral Bonds shall be issued (1) in an
aggregate principal amount equal to the aggregate principal amount of the corresponding series
of Securities then Outstanding, (2) bearing interest at a rate equal to the interest rate borne
by the corresponding series of Securities, (3) having interest payment dates that are the same
as the Interest Payment Dates of the corresponding series of Securities, (4) with a stated
maturity that is the same as the Stated Maturity of the corresponding series of Securities, (5)
containing the same redemption or other make-whole payment provisions as the corresponding
series of Securities and provisions providing for the mandatory redemption thereof upon an
acceleration of the maturity of any Outstanding Securities of the corresponding series
following an Event of Default, and (6) meeting the other requirements of Section 4.9 of the
Original Indenture; it being expressly understood that each such series of Substituted
Collateral Bonds shall be held by the Trustee for the benefit of the Holders of the
corresponding series of Securities from time to time Outstanding subject to such terms and
conditions relating to surrender to the Company, transfer restrictions, voting, application of
payments of principal and interest and other matters as shall be set forth in an indenture
supplemental hereto specifically providing for the delivery to the Trustee of such Substituted
Collateral Bonds;

     (ii) such Substituted Collateral Bonds shall have been issued under and shall be secured by
a Substituted Mortgage Indenture

     (A) on which the Company shall be the obligor, and

     (B) which shall be qualified, or shall meet the requirements for qualification, under the
Trust Indenture Act;

     (iii) the Company shall have delivered to the Trustee:

     (A) an indenture supplemental hereto providing for the delivery to the Trustee of
Substituted Collateral Bonds in accordance with Section 4.9 of the Original Indenture and
Section 4.03(b)(i) above, together with such Substituted Collateral Bonds;

7

 

     (B) an Officer’s Certificate (1) stating that, to the knowledge of the signer, (A) no
Event of Default has occurred and is continuing and (B) no event has occurred and is continuing
which entitles the secured party under the Substituted Mortgage Indenture to accelerate the
maturity of the indebtedness outstanding thereunder and (2) stating the aggregate principal
amount of indebtedness issuable, and then proposed to be issued, under and secured by the lien
of the Substituted Mortgage Indenture; and

     (C) an Opinion of Counsel to the effect that such Substituted Collateral Bonds have been
duly issued under such Substituted Mortgage Indenture and constitute valid obligations,
entitled to the benefit of the lien of the Substituted Mortgage Indenture equally and ratably
with all other indebtedness then outstanding secured by such lien; and

     (iv) the Company shall have been advised in writing, within not more than 30 days prior to
such substitution of the Substituted Collateral Bonds for the Collateral Bonds, by at least two
credit rating agencies qualifying as “nationally recognized statistical rating organizations” (as
defined by the Securities Exchange Act of 1934, as amended) then maintaining a securities rating
on the Senior Notes that the substitution of such Substituted Collateral Bonds for the Collateral
Bonds will not result in a reduction of the securities rating assigned to the Senior Notes by that
credit rating agency immediately prior to the substitution or the suspension or withdrawal of its
rating and the Company shall have provided the Trustee with written evidence of such advice;
provided that, in the event such Senior Notes are not rated by at least two such credit rating
agencies as described above immediately prior to any proposed substitution, the Company shall
cause the Senior Notes to be so rated prior to such substitution (and without giving effect to any
substitution) by at least two such credit rating agencies described above.

     (c) in the event that the Company cannot obtain assurance of at least two credit rating
agencies as described in Section 4.03(b)(iv) above, the Company will take such actions as are
necessary to cause the Release Date not to occur.

     (d) Notwithstanding any other provision of the Indenture, including Section 4.9(d) of the
Original Indenture, the requirements of this Section 4.03 shall constitute covenants, agreements
and obligations of the Company under the Indenture.

     Section 4.04. Additional Event of Default.

     Failure by the Company to deliver Substituted Mortgage Bonds in accordance with the provisions
of Section 4.03 of this Supplemental Indenture and Section 4.9 of the Original Indenture on or
prior to the Release Date shall be an “Event of Default” with respect to the Senior Notes as
contemplated by Section 6.1(9) of the Original Indenture.

Article V

MISCELLANEOUS

     Section 5.01. Limitation of Trustee Liabilty

8

 

     The Trustee has accepted the amendment of the Indenture effected by this Supplemental
Indenture and agrees to execute the trust created by the Indenture as hereby amended, but only upon
the terms and conditions set forth in the Indenture, including the terms and provisions defining
and limiting the liabilities and responsibilities of the Trustee, and without limiting the
generality of the foregoing, the Trustee shall not be responsible in any manner whatsoever for or
with respect of any of the recitals or statements contained herein, all of which recitals or
statements are made solely by the Company, or for or with respect to (a) the validity or
sufficiency of this Supplemental Indenture or any of the terms or provisions hereof, (b) the proper
authorization hereof by the Company by corporate action or otherwise, and (c) the due execution
hereof by the Company.

     Section 5.02. Applicable Law

     This Supplemental Indenture and the Senior Notes shall be construed in connection with and as
a part of the Indenture and shall be governed by the laws (other than the choice of law provisions)
of the State of New York.

     Section 5.03. Survivability of Certain Provisions

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

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

     Section 5.04. Successors and Assigns

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

     Section 5.05. Counterpart Signatures and Descriptive Headings

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

9

 

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

10

 

     IN WITNESS WHEREOF, MICHIGAN CONSOLIDATED GAS COMPANY has caused this Supplemental Indenture
to be executed by its duly authorized Officer and its corporate seal to be hereunto affixed, and
CITIBANK, N.A., as Trustee as aforesaid, has caused this Supplemental Indenture to be executed by
one of its authorized signatories, as of June 1, 2008.

	 	 	 	 	 
	 	

MICHIGAN CONSOLIDATED GAS COMPANY

 	 
	[Corporate Seal] 	By:  	/s/ Edward J. Solomon
 	 
	 	 	Edward J. Solomon 	 
	 	 	Assistant Treasurer 	 
	 
	 	CITIBANK, N.A., as Trustee

 	 
	 	By:  	/s/ Wafaa Orfy
 	 
	 	 	Wafaa Orfy 	 
	 	 	Vice President 	 
	 

11

 

			
	PPN:                    
	 	APPENDIX I
	 	 	 
	No.R-___
	 	$                    

     THE NOTES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”) AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
EXCEPT (A) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND (B) IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES. IN CONNECTION
WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES
AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER
COMPLIES WITH THE FOREGOING RESTRICTIONS.

MICHIGAN CONSOLIDATED GAS COMPANY

6.78% Senior Notes

2008 Series F due 2028

Principal Amount: $                    

Authorized Denomination: $1,000

Regular Record Date: close of business on the 15th calendar day (whether or not a
Business Day) prior to the relevant Interest Payment Date

Original Issue Date: June 26, 2008

Stated Maturity: June 15, 2028

Interest Payment Dates: June 15 and December 15 of each year, commencing December 15, 2008

Interest Rate: 6.78% per annum

     MICHIGAN CONSOLIDATED GAS COMPANY, a corporation duly organized and existing under the laws of
the State of Michigan (the “Company”, which term includes any successor corporation under the
Senior Indenture hereinafter referred to), for value received, hereby promises to pay to
                                         or registered assigns, at the office or agency of the Company in
the City of New York, New York, the principal sum of                                          MILLION DOLLARS
($     ) on June 15, 2028 (the “Stated Maturity”), in the coin or currency of the United
States, and to pay interest thereon from the Original Issue Date shown above, or from the most
recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually in
arrears on each Interest Payment Date as specified above, commencing on December 15, 2008 and on
the Stated Maturity at the rate per annum shown above (the

 

 

“Interest Rate”) until the principal hereof is paid or made available for payment and on any
overdue principal and Make-Whole Amount and on any overdue installment of interest. The interest so
payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided
in the Senior Indenture, be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular Record Date as
specified above next preceding such Interest Payment Date; provided that any interest payable at
Stated Maturity or on a Redemption Date will be paid to the Person to whom principal is payable.
Except as otherwise provided in the Senior Indenture, any such interest not so punctually paid or
duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and
may either be paid to the Person in whose name this Senior Note is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the
Senior Trustee, notice whereof shall be given to Holders of Securities of this series not less than
10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange, if any, on which the Securities of
this series shall be listed, and upon such notice as may be required by any such exchange, all as
more fully provided in the Senior Indenture.

     Payments of interest on this Senior Note will include interest accrued to but excluding the
respective Interest Payment Dates. Interest payments for this Senior Note shall be computed and
paid on the basis of a 360-day year consisting of twelve 30-day months. The Company shall pay
interest on overdue principal and Make-Whole Amount, if any, and, to the extent lawful, on overdue
installments of interest at the rate per annum borne by this Senior Note. In the event that any
Interest Payment Date, Redemption Date or Maturity Date is not a Business Day, then the required
payment of principal, Make-Whole Amount, if any, and interest will be made on the next succeeding
day that is a Business Day (and without any interest or other payment in respect of any such
delay). “Business Day” means any day other than a day on which banking institutions in the State of
New York or the State of Michigan are authorized or obligated pursuant to law or executive order to
close.

     Payment of principal of, Make-Whole Amount, if any, and interest on the Securities of this
series shall be made in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts. Payments of principal, Make-Whole
Amount, if any, and interest due at the Stated Maturity or earlier redemption of such Securities
shall be made at the office of the Paying Agent upon surrender of such Securities to the Paying
Agent, and (ii) payments of interest shall be made, at the option of the Company, subject to such
surrender where applicable, (A) by check mailed to the address of the Person entitled thereto as
such address shall appear in the Security Register or (B) by wire transfer at such place and to
such account at a banking institution in the United States as may be designated in writing to the
Senior Trustee at least fourteen (14) days prior to the date for payment by the Person entitled
thereto. Notwithstanding the foregoing, so long as any Senior Note is held by an Institutional
Investor, payment of principal, Make-Whole Amount, if any, and interest on the Senior Notes held by
such Holder shall be made in the manner specified in the Purchase Agreement.

 

 

     UNTIL THE RELEASE DATE (AS DEFINED ON THE REVERSE HEREOF), THIS SENIOR NOTE SHALL BE SECURED
BY FIRST MORTGAGE BONDS (THE “FIRST MORTGAGE BONDS”) ISSUED AND DELIVERED BY THE COMPANY TO THE
SENIOR TRUSTEE (AS DEFINED ON THE REVERSE HEREOF) UNDER THE COMPANY’S TWENTY-NINTH SUPPLEMENTAL
INDENTURE DATED AS OF JULY 15, 1989, PROVIDING FOR THE RESTATEMENT OF THE INDENTURE OF MORTGAGE AND
DEED OF TRUST DATED AS OF MARCH 1, 1944 BETWEEN THE COMPANY AND CITIBANK, N.A. (THE “MORTGAGE
TRUSTEE”) WHICH BECAME EFFECTIVE APRIL 1, 1994, AS PREVIOUSLY SUPPLEMENTED INCLUDING AS
SUPPLEMENTED BY THE FORTIETH SUPPLEMENTAL INDENTURE (AS SO SUPPLEMENTED, THE “MORTGAGE INDENTURE”).
ON THE RELEASE DATE, THE SENIOR NOTES SHALL CEASE TO BE SECURED BY SUCH FIRST MORTGAGE BONDS AND
INSTEAD SHALL BE SECURED BY SUBSTITUTED COLLATERAL BONDS PURSUANT TO SECTION 4.03 OF THE SEVENTH
SUPPLEMENTAL INDENTURE DATED AS OF JUNE 1, 2008 TO THE INDENTURE DESCRIBED ON THE REVERSE HEREOF.

     Reference is made to the further provisions of this Senior Note set forth herein. Such further
provisions shall for all purposes have the same effect as though fully set forth at this place.

     This Senior Note shall not be valid or become obligatory for any purpose until the certificate
of authentication hereon shall have been manually signed by the Senior Trustee under the Senior
Indenture referred to on the reverse hereof.

     IN WITNESS WHEREOF, MICHIGAN CONSOLIDATED GAS COMPANY has caused this instrument to be duly
executed under its corporate seal.

Dated: JUNE 26, 2008

	 	 	 	 	 
	 	MICHIGAN CONSOLIDATED GAS COMPANY

 	 
	 	By:  	 	 
	 	 	N.A. Khouri 	 
	 	 	Vice President and Treasurer 	 
	 

	 	 	 	 	 
	Attest:
	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Sandra Kay Ennis 

Corporate Secretary
	 	 

 

 

CERTIFICATION OF AUTHENTICATION

Dated: June 26, 2008

     This is one of the Securities of the series designated therein referred to in the
within-mentioned Senior Indenture.

	 	 	 	 	 
	 	CITIBANK, N.A., as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

 

 

[REVERSE]

MICHIGAN CONSOLIDATED GAS COMPANY

6.78% Senior Notes

2008 Series F due 2028

          1. Senior Indenture. (a) This Senior Note is one of the duly authorized issue
of Securities of the Company (hereinafter called the “Securities”) of the series hereinafter
specified, all issued or to be issued under and pursuant to an Indenture, dated as of June 1, 1998,
as supplemented by the First Supplemental Indenture, dated as of June 18, 1998, the Second
Supplemental Indenture, dated as of June 9, 1999, the Third Supplemental Indenture, dated as of
August 15, 2001, the Fourth Supplemental Indenture dated as of February 15, 2003, the Fifth
Supplemental Indenture dated as of October 1, 2004, the Sixth Supplemental Indenture dated as of
April 1, 2008 and the Seventh Supplemental Indenture dated as of June 1, 2008 between the Company
and the Trustee (as so supplemented, the “Senior Indenture”), duly executed and delivered by the
Company to Citibank, N.A., as Trustee (herein called the “Senior Trustee,” which term includes any
successor trustee under the Senior Indenture), to which Senior Indenture reference is hereby made
for a description of the rights, limitations of rights, obligations, duties and immunities
thereunder of the Senior Trustee, the Company and the Holders of the Securities. The Securities may
be issued in one or more series, which different series may be issued in various aggregate
principal amounts, may mature at different times, may bear interest, if any, at different rates,
may be subject to different redemption provisions (if any) and may be subject to different sinking,
purchase or analogous funds (if any) and may otherwise vary as provided in the Senior Indenture.
This Security is one of the series designated as the “6.78% Senior Notes, 2008 Series F due 2028”
(the “Senior Notes”) of the Company.

                    (b) The Senior Indenture contains provisions for defeasance at any time of the entire
indebtedness of the Senior Notes or certain covenants with respect thereto upon compliance by the
Company with certain conditions set forth therein.

          2. Defined Terms. Capitalized terms used herein for which no definition is provided
herein shall have the meanings set forth in the Senior Indenture.

          3. Transfer. No service charge will be made for any transfer or exchange of Senior
Notes, but payment will be required of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection therewith.

     The Company shall not be required (a) to issue, transfer or exchange any Senior Notes during a
period beginning at the opening of business fifteen (15) days before the day of the mailing of a
notice pursuant to Section 12.4 of the Indenture identifying the serial numbers of the Senior Notes
to be called for redemption, and ending at the close of business on the day of the mailing, or (b)
to transfer or exchange any Senior Notes theretofore selected for redemption in whole or in part,
except the unredeemed portion of any Senior Note redeemed in part.

 

 

               4. Redemption at the Company’s Option. The Senior Notes shall be subject to
redemption at the option of the Company, in whole at any time or in part from time to time (any
such date of optional redemption, a “Redemption Date” for purposes of the Indenture), at an
optional redemption price (which shall be a “Redemption Price” for purposes of the Indenture) equal
to 100% of the principal amount of the Senior Notes to be redeemed on the Redemption Date together
with the Make-Whole Amount (as defined below), if any, plus, in each case, accrued and unpaid
interest thereon to the Redemption Date.

     Notwithstanding the foregoing, installments of interest on the Series of Notes, that are due
and payable on Interest Payment Dates falling on or prior to a Redemption Date will be payable on
the Interest Payment Date to the registered Holders as of the close of business on the relevant
Record Date.

     “Make-Whole Amount” means, with respect to any Senior Note, an amount equal to the excess, if
any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called
Principal of such Senior Note over the amount of such Called Principal, provided that the
Make-Whole Amount may in no event be less than zero. For the purposes of determining the
Make-Whole Amount, the following terms have the following meanings:

     “Called Principal” means, with respect to a Senior Note, the principal of the Senior Note that
is to be redeemed on an optional Redemption Date or has become or is declared to be immediately due
and payable pursuant to Section 6.2 of the Indenture, as the context requires.

     “Discounted Value” means, with respect to the Called Principal of a Senior Note, the amount
obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from
their respective scheduled due dates to the Settlement Date with respect to such Called Principal,
in accordance with accepted financial practice and at a discount factor (applied on the same
periodic basis as that on which interest on the Senior Note is payable) equal to the Reinvestment
Yield with respect to such Called Principal.

     “Reinvestment Yield” means, with respect to the Called Principal of a Senior Note, 0.50% plus
the yield to maturity implied by (i) the yields reported, as of 10:00 a.m. (New York City time) on
the second Business Day preceding the Settlement Date with respect to such Called Principal, on the
display designated as “PX-1” on the Bloomberg Financial Market Screen (or such other display on the
Bloomberg Financial Market Service having the same information as “PX-1”, if “PX-1” is replaced by
the Bloomberg Financial Market Screen) for the most recently issued, actively traded on-the-run,
benchmark U.S. Treasury securities having a maturity equal to the Remaining Average Life of such
Called Principal as of such Settlement Date, or (ii) if such yields are not reported as of such
time or the yields reported as of such time are not ascertainable (including by way of
interpolation), the Treasury Constant Maturity Series Yields reported, for the latest day for which
such yields have been so reported as of the second Business Day preceding the Settlement Date with
respect to such Called

 

 

Principal, in Federal Reserve Statistical Release H.15 (519) (or any comparable successor
publication) for actively traded U.S. Treasury securities having a constant maturity equal to the
Remaining Average Life of such Called Principal as of such Settlement Date. Such implied yield
will be determined, if necessary, by (a) converting U.S. Treasury bill quotations to
bond-equivalent yields in accordance with accepted financial practice and (b) interpolating
linearly on a straight line basis between (1) the most recently issued, actively traded on-the-run,
benchmark U.S. Treasury security with the maturity closest to and greater than the Remaining
Average Life and (2) the most recently issued, actively traded on-the-run, benchmark U.S. Treasury
security with the maturity closest to and less than the Remaining Average Life. The Reinvestment
Yield shall be rounded to the number of decimal places as appears in the interest rate of the
applicable Senior Note.

     “Remaining Average Life” means, with respect to any Called Principal, the number of years
(calculated to the nearest one-twelfth year) obtained by dividing (i) such Called Principal into
(ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining
Scheduled Payment with respect to such Called Principal by (b) the number of years (calculated to
the nearest one-twelfth year) that will elapse between the Settlement Date with respect to such
Called Principal and the Stated Maturity of such Remaining Scheduled Payment.

     “Remaining Scheduled Payments” means, with respect to the Called Principal of a Senior Note,
all payments of such Called Principal and interest thereon that would be due after the Settlement
Date with respect to such Called Principal if no payment of such Called Principal were made prior
to its Stated Maturity, provided that if such Settlement Date is not a date on which interest
payments are due to be made under the terms of the Senior Note, then the amount of the next
succeeding scheduled interest payment will be reduced by the amount of interest accrued to such
Settlement Date and required to be paid on such Settlement Date.

     “Settlement Date” means, with respect to the Called Principal of a Senior Note, the optional
Redemption Date on which such Called Principal is to be redeemed or has become or is declared to be
immediately due and payable pursuant to Section 6.2 of the Indenture as the context requires.

     Unless the Company defaults in payment of the applicable Redemption Price, on and after the
applicable Redemption Date interest will cease to accrue on the principal amount of the Senior
Notes called for redemption.

     If money sufficient to pay the applicable Redemption Price with respect to the principal
amount of and accrued interest on the principal amount of the Senior Notes to be redeemed on the
applicable Redemption Date is deposited with the Senior Trustee or Paying Agent on or before the
related Redemption Date and certain other conditions are satisfied, then on or after such date,
interest will cease to accrue on the principal amount of the Senior Notes called for redemption.

 

 

     If the Company elects to redeem all or a portion of the Senior Notes, the redemption will be
conditional upon receipt by the Paying Agent or the Senior Trustee of monies sufficient to pay the
Redemption Price. If the Senior Notes are only partially redeemed by the Company, the Senior
Trustee shall select which Senior Notes are to be redeemed pro rata among all of the Senior Notes
at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal
amounts thereof and otherwise in accordance with the terms of the Indenture.

     In the event of redemption of the Senior Notes in part only, a new Senior Note or Senior Notes
for the unredeemed portion will be issued in the name or names of the Holders thereof upon the
surrender thereof.

     The Senior Notes will not have a sinking fund.

     Notice of redemption shall be given as provided in Section 12.4 of the Indenture. Each such
notice shall specify such optional Redemption Date, the aggregate principal amount of the Senior
Notes to be prepaid on such date, the principal amount of each Senior Note held by such Holder to
be redeemed, and the interest to be paid on the Redemption Date with respect to such principal
amount being prepaid, and shall be accompanied by a certificate of a senior financial officer of
the Company as to the estimated Make-Whole Amount due in connection with such redemption
(calculated as if the date of such notice were the date of the redemption), setting forth the
details of such computation. The Make-Whole Amount shall be determined by the Company two Business
Days prior to the applicable Redemption Date and the Company shall deliver to holder of the Senior
Notes and to the Trustee a certificate of a senior financial officer specifying the calculation of
such Make-Whole Amount as of the Redemption Date.

  Any redemption of less than all of the Senior Notes shall, with respect to the principal
thereof, be divisible by $1,000.

     5. Security; Release Date. Prior to the Release Date (as hereinafter defined), the
Senior Notes shall be secured by First Mortgage Bonds designated as 2008 Series F Collateral Bonds
(the “Collateral Bonds”), delivered by the Company to the Senior Trustee for the benefit of the
Holders of the Senior Notes. Prior to the Release Date, the Company shall make payments of the
principal of, and Make-Whole Amount, if any, and or interest on, the Collateral Bonds to the Senior
Trustee, which payments shall be applied by the Senior Trustee to satisfaction of all obligations
then due on the Senior Notes. Reference is made to the Mortgage Indenture and the Senior Indenture
for a description of the rights of the Senior Trustee as holder of the Collateral Bonds, the
property mortgaged and pledged under the Mortgage Indenture and the rights of the Company and of
the Mortgage Trustee in respect thereof, the duties and immunities of the Mortgage Trustee and the
terms and conditions upon which the Collateral Bonds are secured and the circumstances under which
additional First Mortgage Bonds or Substituted Collateral Bonds may be issued.

 

 

     FROM AND AFTER SUCH TIME AS ALL FIRST MORTGAGE BONDS (OTHER THAN COLLATERAL BONDS) ISSUED
UNDER THE MORTGAGE INDENTURE HAVE BEEN RETIRED THROUGH PAYMENT, REDEMPTION OR OTHERWISE AT, BEFORE
OR AFTER THE MATURITY THEREOF (THE “RELEASE DATE”), THE COLLATERAL BONDS SHALL CEASE TO SECURE THE
SENIOR NOTES IN ANY MANNER PROVIDED THAT NO DEFAULT OR EVENT OF DEFAULT HAS OCCURRED AND AT SUCH
TIME IS CONTINUING UNDER THE SENIOR INDENTURE. IN CERTAIN CIRCUMSTANCES PRIOR TO THE RELEASE DATE
AS PROVIDED IN THE SENIOR INDENTURE, THE COMPANY IS PERMITTED TO REDUCE THE AGGREGATE PRINCIPAL
AMOUNT OF A SERIES OF COLLATERAL BONDS HELD BY THE SENIOR TRUSTEE, BUT IN NO EVENT PRIOR TO THE
RELEASE DATE TO AN AMOUNT LESS THAN THE AGGREGATE OUTSTANDING PRINCIPAL AMOUNT OF THE SERIES OF
SENIOR NOTES INITIALLY ISSUED CONTEMPORANEOUSLY WITH SUCH COLLATERAL BONDS. ON THE RELEASE DATE,
THE SENIOR NOTES SHALL CEASE TO BE SECURED BY SUCH FIRST MORTGAGE BONDS AND INSTEAD SHALL BE
SECURED BY SUBSTITUTED COLLATERAL BONDS PURSUANT TO SECTION 4.03 OF THE SEVENTH SUPPLEMENTAL
INDENTURE DATED AS OF JUNE 1, 2008 TO THE INDENTURE DESCRIBED ABOVE.

     6. Effect of Event of Default. In case an Event of Default with respect to the Senior
Notes shall occur and be continuing, the unpaid principal of the Senior Notes may be declared due
and payable, in the manner, with the effect and subject to the conditions provided in the Senior
Indenture. Upon any such declaration, the Company shall also pay to the Holders of the Senior
Notes the Make-Whole Amount on the Senior Notes, if any, determined as of the date the Senior Notes
shall have been declared due and payable

     7. Amendments and Waivers. The Senior Indenture may be modified by the Company and
the Senior Trustee without consent of any Holder with respect to certain matters as described in
the Indenture. In addition, the Senior Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and obligations of the Company
and the rights of the Holders of the Securities of each series to be affected under the Senior
Indenture at any time by the Company and the Senior Trustee with the consent of the Holders of a
majority in principal amount of the Securities at the time Outstanding of each series to be
affected. The Senior Indenture also contains provisions permitting the Holders of a majority in
principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders
of all Securities of such series, to waive compliance by the Company with certain provisions of the
Senior Indenture and certain past defaults under the Senior Indenture and their consequences. Any
such consent or waiver by the Holder of this Senior Note shall bind such Holder and all future
Holders of this Senior Note and of any note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon
this Senior Note.

 

 

     8. Obligations of Company. No reference herein to the Senior Indenture and no
provision of this Senior Note or of the Senior Indenture shall alter or impair the obligation of
the Company, which is absolute and unconditional, to pay the principal of and any Make-Whole
Amount, if any, and interest on this Senior Note at the time, place, and rate and in the coin or
currency herein prescribed.

     9. Denominations, Transfer and Exchange.

          (a) The Senior Notes are issuable only in registered form without coupons in denominations
of $1,000 and any integral multiple thereof. As provided in the Senior Indenture and subject to
certain limitations therein set forth, Senior Notes of this series are exchangeable for a like
aggregate principal amount of Senior Notes of this series of a different authorized denomination,
as requested by the Holder surrendering the same.

          (b) As provided in the Senior Indenture and subject to certain limitations therein set forth,
the transfer of this Senior Note is registrable in the Security Register, upon surrender of this
Senior Note for registration of transfer at the office or agency of the Company in any place where
the principal of (and Make-Whole Amount, if any) and interest on this Senior Note are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company
and the Security Registrar duly executed by the Holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Senior Notes of this series, and of like tenor, of
authorized denominations and for the same maturity and aggregate principal amount, shall be issued
to the designated transferee or transferees.

          (c) No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith. Prior to due presentment of this Senior Note for registration of
transfer, the Company, the Senior Trustee and any agent of the Company or the Senior Trustee may
treat the Person in whose name this Senior Note is registered as the owner hereof for all purposes,
whether or not this Senior Note be overdue, and neither the Company, the Senior Trustee nor any
such agent shall be affected by notice to the contrary.

     10. No Liability of Certain Persons. A director, officer, employee or stockholder, as
such, of the Company shall not have any liability for any obligations of the Company under this
Senior Note or the Senior Indenture or for any claim based on, in respect of or by reason of, such
obligations or their creation. Each Holder, by accepting a Senior Note, waives and releases all
such liability. The waiver and release are part of the consideration for the issuance of this
Senior Note.

     11. Governing Law. The Senior Indenture and this Senior Note shall for all purposes be
governed by, and construed in accordance with, the internal laws of the State of New York.

 

 

     THE FOLLOWING ABBREVIATIONS SHALL BE CONSTRUED AS THOUGH THE WORDS SET FORTH BELOW OPPOSITE
EACH ABBREVIATION WERE WRITTEN OUT IN FULL WHERE SUCH ABBREVIATION APPEARS:

	 	 	 	 	 	 	 	 	 
	TEN COM 

TEN ENT 

JF TEN

	 	-

-

-
	 	as tenants in common 

as tenants by the entirety

as joint tenants with
right of survivorship and not as
tenants in common
	 	(Name) CUST

(Name) UNIF GIFT

MIN ACT (state) —
	 	(Name) as Custodian
 for (name) under the (State)
Uniform Gifts to Minors Act

ADDITIONAL ABBREVIATIONS MAY ALSO BE USED THOUGH NOT IN THE ABOVE LIST.

To assign this Senior Note, fill in the form below: (I) or (we) assign and transfer this Senior
Note to:

 

(Print or type assignee’s name, address and zip code)

 

 

(Insert assignee’s social security or tax I.D. number)

and
irrevocably appoint         agent to transfer this Senior Note on the books of the Company. The agent
may substitute another to act for him.

	 	 	 	 	 	 
	Dated:                     

	 	Your Signature:	 	 	 
	 

	 	 	 	 

(Sign exactly as your name appears
	 
	 

	 	 	 	on the other side of this Senior Note)	 

	 	 	 	 	 
	Signature Guarantee:
	 	 	 	 
	 

	 	 

	 	 

(Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of
the Transfer Agent, which requirements will include membership or participation in STAMP or such
other “signature guarantee program” as may be determined by the Transfer Agent in addition to, or
in substitution for, STAMP, all in accordance with the Exchange Act.)

Social Security Number or Taxpayer Identification Number:                                        

 

 

CERTIFICATE TO BE DELIVERED UPON EXCHANGE

OR REGISTRATION OF TRANSFER OF SECURITIES

     This Certificate relates to $                     principal amount of Senior Notes held in definitive
form by                                          (the “Transferor”). The Transferor has requested the Trustee by
written order to exchange or register the transfer of a Security or Securities.

     In connection with any transfer of any of the Securities evidenced by this certificate
occurring prior to the expiration of the period referred to in Rule 144(k) under the Securities Act
of 1933, the undersigned confirms that such Securities are being transferred in accordance with its
terms:

CHECK ONE BOX BELOW:

	 	 	 	 	 	 	 
	 

	(1	)	 	o
	 	to the Company; or
	 
	 	 	 	 	 	 
	 

	(2	)	 	o
	 	inside the United States to a “qualified institutional buyer” (as defined in Rule 144A
under the Securities Act of 1933) that purchases for its own account or for the account of a
qualified institutional buyer to whom notice is given that such transfer is being made in
reliance on Rule 144A, in each case pursuant to and in compliance with Rule 144A under the
Securities Act of 1933; or
	 
	 	 	 	 	 	 
	 

	(3	)	 	o
	 	pursuant to another available exemption from registration under the Securities Act of 1933.

     Prior to the expiration of the period referred to in Rule 144(k), unless one of the boxes is
checked, the Trustee will refuse to register any of the Securities evidenced by this certificate in
the name of any Person other than the registered holder thereof; provided, however, that if box (3)
is checked, the Trustee may require, prior to registering any such transfer of the Securities, such
certifications and other information satisfactory to the Company and the Trustee to confirm that
such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act of 1933.

	 	 	 	 	 
	 

	 	 

[INSERT NAME OF TRANSFEROR]
	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	[SIGNATURE GUARANTEE]	 	 

     Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements
of the Security Registrar, which requirements include membership or participation in the Security
Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be
determined by the Security Registrar in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.

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