Document:

Otter Tail Corporation

 

OTTER TAIL CORPORATION

Officer’s Certificate and Authentication Order

Relating to 5.625% Insured Senior Notes due October 1, 2017

         Pursuant to the Indenture (For Unsecured Debt Securities) dated as of
November 1, 1997 (the “Indenture”) between Otter Tail Corporation, a Minnesota
corporation (the “Company”), and U.S. Bank National Association (formerly First
Trust National Association), as trustee (the “Trustee”), and resolutions
adopted by the Board of Directors of the Company on June 10, 2002 and the
Pricing Committee of the Board of Directors of the Company by written action
dated September 23, 2002, this Officer’s Certificate and Authentication Order
is being delivered to the Trustee to establish the terms of a series of
Securities in accordance with Section 301 of the Indenture, to establish the
form of the Securities of such series in accordance with Section 201 of the
Indenture, to request the authentication and delivery of the Securities of such
series pursuant to Section 303 of the Indenture and to comply with the
provisions of Section 102 of the Indenture.

         Capitalized terms used but not defined herein and defined in the Indenture
shall have the respective meanings ascribed to them in the Indenture.

         A.     Establishment of Series Pursuant to Section 301 of the Indenture.
There is hereby established, pursuant to Section 301 of the Indenture, a series
of Securities which shall have the following terms (the lettered clauses set
forth below correspond to the lettered subsections of Section 301 of the
Indenture):

         (a)  The series of Securities hereby being authorized shall bear the title
“5.625% Insured Senior Notes due October 1, 2017” (referred to herein as the
“Notes”).

         (b)  There shall be no limit on the aggregate principal amount of Notes
which may be authenticated and delivered under the Indenture; provided,
however, that the aggregate principal amount of the Notes that may be
authenticated and delivered under the Indenture pursuant to this Officer’s
Certificate and Authentication Order shall be limited to $40,000,000 (except
for Notes authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Notes pursuant to Section 304, 305, 306, 406
or 1206 thereof and, except for any Notes which, pursuant to Section 303
thereof, are deemed never to have been authenticated and delivered thereunder).
Additional Notes having the same ranking, interest rate, maturity and other
terms (except issue price) as the Notes previously issued may be issued from
time to time under one or more Officer’s Certificates in accordance with the
Indenture without the consent of Holders of the Notes or any other series of
Securities, and all the Notes issued will constitute a single series of
Securities under the Indenture.

         (c)  Interest on the Notes shall be payable to the Person in whose name the
Note is registered at the close of business on the Regular Record Date (as
defined in paragraph (e) below), except that interest, if any, due at Maturity
will be paid to the person to whom the principal of the Note is paid. Any
installment of interest on a Note not punctually paid or duly
provided for shall forthwith cease to be payable to the Holder on such
Regular Record Date, and

 

 

may either be paid to the Person in whose name the
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 Trustee, notice whereof
shall be given to the Holders of the Notes not more than 15 days and 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 on which the Notes may be listed, or any book-entry system which may
be applicable to the Notes and upon such notice as may be required by such
exchange or system, all as more fully provided in the Indenture.

         (d)  The Notes shall mature and the principal thereof shall be due and
payable, unless previously redeemed or otherwise repaid, on October 1, 2017,
together with any unpaid interest accrued thereon to, but not including, such
date.

         (e)  The Notes shall bear interest from the date of original issuance at
the rate of 5.625% per annum payable quarterly in arrears on January 1, April
1, July 1 and October 1 of each year (the “Interest Payment Dates”) commencing
January 1, 2003. The amount of interest payable for any such period will be
computed on the basis of a 360-day year consisting of twelve 30-day months.
Interest on the Notes will accrue from the date of original issuance or from
the most recent Interest Payment Date to which interest has been paid or
provided for. The Regular Record Date for payment of interest on the Notes
shall be the December 15, March 15, June 15 or September 15 (whether or not a
Business Day), as the case may be, next preceding the relevant Interest Payment
Date.

         (f)  The principal of and interest on each Note that is not a global
Security shall be payable, and registration of transfer and exchanges of such
Notes may be effected, at the corporate trust office of the Trustee in New
York, New York. Payment of principal of and interest on each Note represented
by a global Security shall be made in immediately available funds to The
Depository Trust Company (“DTC”) or its nominee, as the case may be, as the
sole registered owner and the sole Holder of the Notes represented thereby for
all purposes under the Indenture. Notices and demands to or upon the Company
with respect to the Notes and the Indenture may be served at the Corporate
Trust Office of the Trustee or at the Company at the address of its principal
office specified in the Indenture. The Trustee will initially be the Paying
Agent and the Security Registrar for the Notes.

         (g)  The Notes shall be redeemable at the option of the Company, in whole
or in part, without premium, from time to time on or after October 1, 2005,
upon not less than 30 nor more than 60 days’ prior written notice. The
Redemption Price shall be equal to 100% of the principal amount of the Notes
being redeemed plus any unpaid interest accrued thereon to, but not including,
the Redemption Date.

         (h)  There are no sinking fund or other mandatory redemption provisions
applicable to the Notes, and the Company will not be subject to any obligation
to redeem or repurchase the Notes at the option of a Holder.

         (i)  Not applicable.

         (j)  Not applicable.

         (k)  Not applicable.

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         (l)  Not applicable.

         (m)  Not applicable.

         (n)  Not applicable.

         (o)  In addition to the Events of Default listed in the Indenture, the
occurrence and continuance of an “event of default” under that certain
Insurance Agreement dated September 27, 2002 between the Company and Ambac
Assurance Corporation (the “Insurer”), as may be amended from time to time (the
“Insurance Agreement”), shall also constitute an Event of Default under the
Indenture with respect to the Notes. Upon the occurrence and continuation of
an “event of default” under the Insurance Agreement, the Insurer may take
whatever action at law or in equity that may appear necessary or desirable,
including without limitation (i) notifying the Trustee of the occurrence and
continuance of such “event of default” and directing the Trustee to exercise
such remedies as may be provided in the Indenture in respect thereof and (ii)
instituting legal action for the specific performance of any covenant made by
the Company in the Insurance Agreement and/or for the collection of the amounts
then due and thereafter to become due under the Insurance Agreement, or to
enforce performance and observance of any obligation, agreement or covenant of
the Company under the Insurance Agreement or under the Indenture, or to
exercise rights in respect of any security or collateral delivered to the
Insurer pursuant to the Insurance Agreement.

         (p)  Not applicable.

         (q)  Not applicable.

         (r)  The Notes shall be originally issued in global form registered in the
name of DTC or its nominee and will, unless and until the Notes are exchanged
in whole or in part for certificated Notes registered in the names of various
beneficial holders thereof, contain restrictions on transfer, substantially as
described in the form of Notes attached hereto as Exhibit A. A global Note
shall be exchangeable for certificated Notes registered in the names of persons
other than DTC or its nominee only if (i) DTC notifies the Company that it is
unwilling or unable to continue to act as a depositary for such global Notes or
DTC ceases to be a clearing agency registered under the Securities Exchange Act
of 1934, as amended, and in either case, the Company has not appointed a
successor depositary within 90 days of that notice; (ii) an Event of Default on
the Notes has occurred and is continuing; or (iii) the Company, in its sole
discretion, decides not to have the Notes represented by the global Notes. Any
global Note that is exchangeable pursuant to the preceding sentence shall be
exchangeable for certificated Notes registered in such names as DTC shall
direct.

         (s)  Not applicable.

         (t)  Not applicable.

         (u)  Not applicable.

         (v)    (i) The Notes shall have such other terms and provisions as are
provided in the form set forth in Exhibit A hereto.

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                  (ii) As an additional condition to the Company’s right to satisfy and
discharge the Notes pursuant to Section 701 of the Indenture, the Company shall
be required to deliver to the Trustee an Opinion of Counsel to the effect that,
based upon a change in United States federal income tax law after the date of
issuance of the Notes or a ruling or other formal statement or action to that
effect received from or published by the Internal Revenue Service, (a) the
deposit referred to in Section 701 of the Indenture and the related
satisfaction and discharge of the Company’s obligations with respect to the
Notes will not cause the Holders of the Notes to recognize income, gain or loss
for United States federal income tax purposes and (b) the Holders of the Notes
will be subject to United States federal income tax on the same amounts, in the
same manner and at the same times as would have been the case but for such
deposit and related satisfaction and discharge.

                  (iii) Special Insurance Provisions

         (A)  Consent. Provided that the Insurer is not in default under the
financial guaranty insurance policy issued by the Insurer insuring the payment
when due on the principal of and interest on the Notes (the “Policy”), the
Insurer’s consent shall be required, in addition to the consent of the Holders
of the Notes, for taking any action that requires the consent of the Holders of
the Notes under the Indenture. Provided that the Insurer is not in default
under the Policy, no provision in the Indenture or in this Officer’s
Certificate and Authentication Order expressly recognizing or granting rights
in or to the Insurer may be amended in any manner that materially affects the
rights of the Insurer without the prior written consent of the Insurer.

         (B)  Events of Default and Remedies. Subject to Section 107 of the
Indenture, provided that the Insurer is not in default under the Policy, upon
the occurrence and continuance of an Event of Default under the Indenture, the
Insurer shall be entitled to control and direct the enforcement of all rights
and remedies granted to the Holders of the Notes or the Trustee for the benefit
of the Holders of the Notes; provided, however, that the obligations of the
Trustee to comply with any such direction shall be subject to the Insurer’s
compliance with the conditions set forth in Sections 812 and 903(e) of the
Indenture (as if references in those Sections to Holders were references to the
Insurer) and the protections provided to the Trustee by Section 901(c)(3) of
the Indenture shall be applicable with respect to any direction from the
Insurer given pursuant hereto (as if references in said Sections to Holders
were references to the Insurer).

         (C)  Notice. While the Policy is in effect, the Company or the Trustee
shall furnish to the Insurer (to the attention of the Surveillance Department,
unless otherwise indicated):

		
	 	(1) a copy of any notice to be given to the Holders of the Notes
including, without limitation, notice of any redemption of or
defeasance of the Notes;

		
	 	(2) notice of any failure of the Company to provide required notices
or certificates relating to the Notes;
	 
	 	(3) notice if at any time there are insufficient moneys to make any
payments of principal and/or interest on the Notes as required; and

		
	 	(4) notice immediately upon the occurrence of any Event of Default
under the Notes.

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         (D)  Application of the Term “Outstanding”. In the event that the
principal and/or interest due on the Notes shall be paid by the Insurer
pursuant to the Policy, the Notes shall remain Outstanding for all purposes of
the Indenture, not to be considered defeased or otherwise satisfied and not be
considered paid by the Company, and the assignment and pledge of the Indenture
and all covenants, agreements and other obligations of the Company to the
Holders of the Notes shall continue to exist and shall run to the benefit of
the Insurer, and the Insurer shall be subrogated to the rights of such Holders
to the extent of each such payment.

         (E)  Insurance Policy Payment Procedures. As long as the Policy shall be
in full force and effect, the Company and the Trustee agree to comply with the
following:

		
	 	(1) On all Interest Payment Dates the Trustee will determine whether
there are sufficient funds to pay the principal of or interest on the
Notes on such Interest Payment Date. If the Trustee determines that
there are insufficient funds, the Trustee shall so notify the Insurer.
Such notice shall specify the amount of the deficiency, the Notes to
which such deficiency is applicable and whether such Notes are
deficient as to principal or interest, or both. The Insurer will make
payments of principal or interest due on the Notes on or before the
first (1st) day next following the date on which the Insurer shall
have received notice of Nonpayment (as defined in the Policy) from the
Trustee.

		
	 	(2) In the event of Nonpayment and notification thereof to the
Insurer, the Trustee shall make available to the Insurer and, at the
Insurer’s direction, to The Bank of New York, in New York, New York,
as insurance trustee for the Insurer or any successor insurance
trustee (the “Insurance Trustee”), the registration books for the
Notes maintained by the Trustee, if any, and all records maintained
hereunder.

		
	 	(3) The Trustee shall provide the Insurer and the Insurance Trustee
with a list of the Holders of the Notes entitled to receive principal
or interest payments from the Insurer under the terms of the Policy,
and shall make arrangements with the Insurance Trustee (a) to mail
checks or drafts to the Holders of Notes entitled to receive full or
partial interest payments from the Insurer and (b) to pay principal
upon the Notes surrendered to the Insurance Trustee by the Holders of
the Notes entitled to receive full or partial principal payments from
the Insurer.

		
	 	(4) The Trustee shall, at the time it provides notice to the Insurer
pursuant to clause (1) above, notify Holders of the Notes entitled to
receive the payment of principal or interest thereon from the Insurer
(a) to the fact of such entitlement, (b) that the Insurer will remit
to them all or a part of the interest payments next coming due upon
proof of Holder entitlement to interest payments and delivery to the
Insurance Trustee, in form satisfactory to the Insurance Trustee, of
an appropriate assignment of the
Holder’s right to payment, (c) that should they be entitled to receive
full payment of principal from the Insurer, they must surrender their
Notes (along with an appropriate instrument of assignment in form
satisfactory to the Insurance Trustee to permit ownership of such
Notes to be registered in the name of the Insurer) for payment to 

5

 

		
	 	the
Insurance Trustee, and not the Trustee, and (d) that should they be
entitled to receive partial payment of principal from the Insurer,
they must surrender their Notes for payment thereon first to the
Trustee, who shall note on such Notes the portion of the principal
paid by the Trustee, and then, along with an appropriate instrument of
assignment in form satisfactory to the Insurance Trustee, to the
Insurance Trustee, which will then pay the unpaid portion of
principal.

		
	 	(5) In the event that the Trustee has notice that any payment of
principal of or interest on a Note which has become Due for Payment
(as defined in the Policy) and which is made to a Holder by or on
behalf of the Company has been deemed a preferential transfer and
theretofore recovered from its Holder pursuant to the United States
Bankruptcy Code by a trustee in bankruptcy in accordance with a final,
nonappealable order of a court having competent jurisdiction, the
Trustee shall, at the time the Insurer is notified pursuant to clause
(1) above, notify all Holders of the Notes that in the event that any
Holder’s payment is so recovered, such Holder will be entitled to
payment from the Insurer to the extent of such recovery if sufficient
funds are not otherwise available, and the Trustee shall furnish to
the Insurer its records evidencing the payments of principal of and
interest on the Notes which have been made by the Trustee and
subsequently recovered from Holders and the dates on which such
payments were made.

		
	 	(6) In addition to those rights granted the Insurer under the
Indenture and this Officer’s Certificate and Authentication Order, the
Insurer shall, to the extent it makes payment of principal of or
interest on the Notes, become subrogated to the rights of recipients
of such payments in accordance with the terms of the Policy, and to
evidence such subrogation (a) in the case of subrogation as to claims
for past due interest, the Trustee shall note the Insurer’s rights as
subrogee on the registration books of the Company maintained by the
Trustee upon receipt from the Insurer of proof of the payment of
interest thereon to the Holders of the Notes, and (b) in the case of
subrogation as to claims for past due principal, the Trustee shall
note the Insurer’s rights as subrogee on the registration books of the
Company maintained by the Trustee upon surrender of the Notes by the
Holders thereof together with proof of the payment of principal
thereof.

         (F)  Trustee. The Insurer shall receive prior written notice of any
Trustee resignation. Notwithstanding any other provision of the Indenture or
this Officer’s Certificate and Authentication Order, in determining whether the
rights of the Holders of the Notes will be adversely affected by any action
taken pursuant to the terms and provisions hereof, the Trustee shall consider
the effect on the Holders of the Notes as if there were no Policy.

         (G)  Third-Party Beneficiary. To the extent that the Indenture or this
Officer’s Certificate and Authentication Order confers upon or gives or grants
to the Insurer any right,
remedy or claim under or by reason hereof, the Insurer is hereby explicitly
recognized as being a third-party beneficiary hereunder and may enforce any
such right, remedy or claim conferred, given or granted hereunder.

6

 

         B.     Establishment of Form of Note Pursuant to Section 201 of the Indenture.
It is hereby established pursuant to Section 201 of the Indenture that the
Notes shall be substantially in the form attached as Exhibit A hereto.

         C.     Order for the Authentication and Delivery of Debt Securities Pursuant
to Section 303 of the Indenture. It is hereby ordered pursuant to Section 303
of the Indenture that the Trustee authenticate, in the manner provided by the
Indenture, one Note in the aggregate principal amount of $40,000,000 registered
in the name of Cede & Co., which Note has been heretofore duly executed by the
proper officers of the Company and delivered to you as provided in the
Indenture, and to deliver said authenticated Note to A.G. Edwards & Sons, Inc.,
Edward D. Jones & Co., L.P. and Robert W. Baird & Co. Incorporated through the
facilities of DTC against payment therefor on September 27, 2002.

         The undersigned has read the pertinent sections of the Indenture including
the related definitions contained therein. The undersigned has examined the
resolutions adopted by the Board of Directors of the Company on June 10, 2002
and the Pricing Committee of the Board of Directors of the Company by written
action dated September 23, 2002. In the opinion of the undersigned, the
undersigned has made such examination or investigation as is necessary to
enable the undersigned to express an informed opinion as to whether or not the
conditions precedent to (i) the establishment of a series of Securities
pursuant to Section 301 of the Indenture, (ii) the establishment of forms of
such Securities pursuant to Section 201 of the Indenture and (iii) the
authentication of such series of Securities pursuant to Section 303 of the
Indenture have been complied with. In the opinion of the undersigned, such
conditions have been complied with.

	 	 	 	 	 
	Dated: September 23, 2002.	 	 	 	 
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
OTTER TAIL CORPORATION
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
By	/s/ Kevin G. Moug	 
	
	
	
	

	 	 	 	

Kevin G. Moug

Chief Financial Officer and Treasurer

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Exhibit A

         [Unless this certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation (“DTC”), to the Company or
its agent for registration of transfer, exchange or payment, and any
certificate issued is registered in the name of Cede & Co. or in such other
name as is requested by an authorized representative of DTC (and any payment is
made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

OTTER TAIL CORPORATION

5.625% Insured Senior Notes due October 1, 2017

	 	 	 	 	 	 
	NO. R-	 	 	 	$	 
	 	
	 	 		

	 	 	 	 		CUSIP NO. 689648AN3

         (b)  OTTER TAIL CORPORATION, a corporation duly organized and
existing under the laws of Minnesota (herein called the “Company,” which
term includes any successor Person under the Indenture referred to
below), for value received, hereby promises to pay to                     , or registered
assigns, the principal sum of                      United
States Dollars ($                    ) on October 1, 2017, and to pay
interest thereon from September 27, 2002, or from the most recent
Interest Payment Date to which interest has been paid or duly provided
for, quarterly in arrears on January 1, April 1, July 1 and October 1 of
each year, commencing on January 1, 2003, at the rate of 5.625% per
annum, to, but not including, the date on which the principal hereof is
paid or made available for payment. The amount of interest payable for
any period will be computed on the basis of twelve, 30-day months and a
360-day year. The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in such
Indenture, be paid to the Person in whose name this Note (or one or more
Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest, which shall be the December 15,
March 15, June 15 and September 15 (whether or not a Business Day), as
the case may be, next preceding the relevant Interest Payment Date;
except that interest due at Maturity will be paid to the Person to whom
principal of this Note is paid. Any such interest not so punctually paid
or duly provided for shall forthwith cease to be payable to the
registered Holder on such Regular Record Date, and may either be paid to
the Person in whose name this Note (or one or more Predecessor
Securities) is registered at the close of business on a Special Record
Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to the Holders of the Notes not
more than 15 days and 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 on which this Note may
be listed, or any book-entry system which may be applicable to this Note
and upon such notice as may be required by such exchange or system, all
as more fully provided in the Indenture.

 

 

         Payment of the principal of and interest on any Note that is not a global
Note will be made at the corporate trust office of the Trustee in New York, New
York. Payment of principal of and interest on any global Note will be made in
immediately available funds to DTC or its nominee, as the case may be, as the
sole registered owner and the sole Holder of the Notes for all purposes under
the Indenture. Payment of the principal of and interest on each Note will 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.

         Financial Guaranty Insurance Policy No. 19996BE (herein called the
“Policy”) with respect to payments due for principal of and interest on this
Note has been issued by Ambac Assurance Corporation (herein called the
“Insurer”). The Policy has been delivered to The Bank of New York, New York,
New York, as the insurance trustee (herein called the “Insurance Trustee”)
under the Policy and will be held by such Insurance Trustee or any successor
insurance trustee. The Policy is on file and available for inspection at the
principal office of the Insurance Trustee and a copy thereof may be secured
from the Insurer or the Insurance Trustee. All payments required to be made
under the Policy shall be made in accordance with the provisions thereof. The
owner of this Note acknowledges and consents to the subrogation rights of the
Insurer as more fully set forth in the Policy.

         Additional provisions of this Note are continued below and such provisions
have the same effect as though fully set forth in this place.

         Unless the certificate of authentication hereon has been executed by or on
behalf of the Trustee, by manual signature, this Note shall not be entitled to
any benefit under the Indenture or be valid or obligatory for any purpose.

[Remainder of page intentionally left blank; signature page follows.]

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

	 	 	 	 	 	 	 	 	 	 	 
	Dated:	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	 	
	 	 	 	 	 	 	 	 	 
	
	
	
	

	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	 	 	 	 	OTTER TAIL CORPORATION
	
	
	
	

	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	 	 	 	 	By	 	 	 	 	 	 
	
	
	
	

	 	 	 	 	 	 	

Title:
	
	
	
	

	Attest:	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	
	 	 	 	 	 	 	 	 	 
	Title:	 	 	 	 	 	 	 	 	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes of the series designated herein referred to in
the within mentioned Indenture.

	 	 	 	 	 
	 	 	
U.S. BANK NATIONAL ASSOCIATION,
Trustee
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	By	 	 
	 	 	 	 	

Authorized Signatory

3

 

OTTER TAIL CORPORATION

5.625% Insured Senior Notes due October 1, 2017

         This Note is one of a duly authorized issue of Securities of the Company
(such issue of Securities being herein called the “Notes”), issued under an
Indenture (For Unsecured Debt Securities) dated as of November 1, 1997 (herein
called the “Indenture”) between the Company and U.S. Bank National Association
(formerly First Trust National Association), as trustee (herein called the
“Trustee,” which term includes any successor trustee under the Indenture), to
which Indenture and Officer’s Certificate and Authentication Order (herein
called the “Officer’s Certificate”) filed with the Trustee on September 27,
2002 creating the series designated herein reference is hereby made for a
statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the Notes
and of the terms upon which the Notes are, and are to be, authenticated and
delivered.

         The Notes shall be redeemable at the option of the Company, in whole or in
part, without premium, from time to time on or after October 1, 2005, upon not
less than 30 nor more than 60 days’ prior written notice. The Redemption Price
will be equal to 100% of the principal amount of the Notes being redeemed plus
any unpaid interest accrued thereon to, but not including, the Redemption Date.

         If an Event of Default with respect to the Notes shall occur and be
continuing, the principal of the Notes may be declared due and payable in the
manner, with the effect and subject to the conditions provided in the
Indenture, the Officer’s Certificate and that certain Insurance Agreement dated
September 27, 2002 between the Company and the Insurer, as may be amended from
time to time (herein called the “Insurance Agreement”).

         The Indenture and the Officer’s Certificate contain provisions for
satisfaction and discharge at any time of the entire indebtedness of this Note
upon compliance by the Company with certain conditions set forth in the
Indenture and the Officer’s Certificate.

         The Indenture contains provisions permitting the Company and the Trustee,
with the consent of Holders of not less than a majority in principal amount of
the Securities of all series then Outstanding under the Indenture (including
the Notes), considered as one class, to modify the Indenture in a manner
affecting the rights of the Holders of the Notes; provided, that no such
modification may, without the consent of the Holder of each Outstanding Note,
(i) change the Stated Maturity of the principal of, or any installment of
principal of or interest on, any Note, or reduce the principal amount thereof
or the rate of interest thereon (or the amount of any installment of interest
thereon) or change the method of calculating such rate or reduce any premium
payable upon the redemption thereof, or change the coin or currency (or other
property), in which the Notes or any premium or the interest thereon is
payable, or impair the right to institute suit for the enforcement of any such
payment on or after the Stated Maturity of any Note or (ii) reduce the
percentage in principal amount of the Outstanding Notes, the consent of the
Holders of which is required for any such modification, or the consent of the
Holders of which is required for any waiver of compliance with any provision of
the Indenture or of any default thereunder and its consequences, or reduce the
requirements of the Indenture for quorum

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or voting. The Indenture also
contains provisions permitting Holders of a majority in principal
amount of the Notes at the time Outstanding, on behalf of the Holders of
all Notes, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Note shall be conclusive and
binding upon such Holder and upon all future Holders of this Note and of any
Notes issued upon the registration of transfer hereof or in exchange herefor or
in lieu hereof, whether or not notation of such consent or waiver is made upon
this Note.

         Subject to Section 107 of the Indenture, provided that the Insurer is not
in default under the Policy, upon the occurrence and continuance of an Event of
Default under the Indenture the Insurer shall be entitled to control and direct
the enforcement of all rights and remedies granted to the Holders of the Notes
or the Trustee for the benefit of the Holders of the Notes. Provided that the
Insurer is not in default under the Policy, no provision in the Indenture or in
the Officer’s Certificate expressly recognizing or granting rights in or to the
Insurer may be amended in any manner that materially affects the rights of the
Insurer without the prior written consent of the Insurer. Provided that the
Insurer is not in default under the Policy, the Insurer’s consent shall be
required, in addition to the consent of the Holders of the Notes, for taking
any action that requires the consent of the Holders of the Notes under the
Indenture.

         No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this Note
at the times, places and rate, and in the coin or currency, herein prescribed.

         As set forth in, and subject to, the provisions of the Indenture and the
Officer’s Certificate, no Holder of any Note will have any right to institute
any proceeding with respect to the Indenture or for any remedy thereunder,
unless such Holder shall have previously given to the Trustee written notice of
a continuing Event of Default with respect to the Notes, the Holders of not
less than a majority in aggregate principal amount of the Outstanding
Securities of all series in respect of which an Event of Default shall have
occurred and be continuing, considered as one class, shall have made written
request, and offered reasonable indemnity, to the Trustee to institute such
proceeding as trustee, and the Trustee shall not have received from the Holders
of a majority in aggregate principal amount of the Outstanding Securities of
all series in respect of which an Event of Default shall have occurred and be
continuing, considered as one class, a direction inconsistent with such request
and shall have failed to institute such proceeding within 60 days; provided,
however, that such limitations do not apply to a suit instituted by the Holder
hereof for the enforcement of payment of the principal of or interest on this
Note on or after the respective due dates expressed herein.

         As provided in the Indenture and subject to certain limitations
(including, if this Note is a global Note, the limitations set forth above)
therein set forth, the transfer of this Note is registrable in the Security
Register, upon surrender of this Note for registration of transfer at the
office or agency of the Company in the New York, New York maintained for such
purpose, 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 such Holder’s attorney duly authorized in writing, and
thereupon one or more new Notes, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated

5

 

transferee or
transferees. 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.

         Any payment on this Note due on any day which is not a Business Day in New
York, New York need not be made on such day, but may be made on the next
succeeding Business Day with the same force and effect as if made on such due
date, and no interest shall accrue for the period from and after such date,
except that, if such Business Day is in the next succeeding calendar year, such
payment shall be made on the immediately preceding Business Day with the same
force and effect as if made on such due date.

         Prior to due presentment of this Note for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

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

         All terms used in this Note which are defined in the Indenture shall have
the meanings assigned to them in the Indenture.

         THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES
THEREOF.

6

 

ABBREVIATIONS

         The following abbreviations, when used in this instrument, shall be
construed as though they were written out in full according to applicable laws
or regulations.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	
TEN COM
	 	-
	 	as tenants in common	 	 	 	 
	
	
	
	

	 	 	
 	 	 	 	 	 	 	 	 
	
	
	
	

	 	 	
TEN ENT
	 	-
	 	as tenants by the entireties	 	 	 	 
	
	
	
	

	 	 	
 	 	 	 	 	 	 	 	 
	
	
	
	

	 	 	
JT TEN
	 	-
	 	as joint tenants with right of survivorship and not as tenants in common	 	 	 	 
	
	
	
	

	 	 	
 	 	 	 	 	 	 	 	 
	
	
	
	

	 	 	UNIF GIFT MIN ACT —                    Custodian                   
	
	
	
	

	 	 	 	 	 	 	(Cust)                            (Minor)	 	 	 	 
	
	
	
	

	 	 	 	 	 	 	under Uniform Gifts to Minors Act	 	 	 	 
	
	
	
	

	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	 	 	 	 	 	 	

(State)	 	 	 	 
	
	
	
	

	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	 	 	 	 	 	 	Additional abbreviations may also be
 used though not in the above list.	 	 	 	 
	
	
	
	

	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	 	 	 	 	 	 	
	 	 	 	 

7

 

ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto                          

	 	 	 
	PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE	 	 
	
	
	
	

	 	 	 
	
	
	
	

	
	 	 
	
	
	
	

	 	 	
 
	
	
	
	

	
	 	 

(Please Print or Typewrite Name and Address,

Including Postal Zip Code, of Assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints
                          to transfer said Note on
the books of the Company, with full power of substitution in the premises.

	 	 	 
	Dated:	 	 
	
	
	
	

	 	 	
 
	
	
	
	

	Signature Guaranteed	 	 
	
	
	
	

	 	 	
 
	
	
	
	

	

NOTICE: The signature to this
assignment must correspond with the
name as written upon the face of
the within Note in every
particular, without alteration or
enlargement or any change
whatsoever and must be guaranteed
by a member of the Medallion
Signature Program	 	 

8Otter Tail Corporation

 

OTTER TAIL CORPORATION

Officer’s Certificate and Authentication Order

Relating to 6.80% Senior Notes due October 1, 2032

         Pursuant to the Indenture (For Unsecured Debt Securities) dated as of
November 1, 1997 (the “Indenture”) between Otter Tail Corporation, a Minnesota
corporation (the “Company”), and U.S. Bank National Association (formerly First
Trust National Association), as trustee (the “Trustee”), and resolutions
adopted by the Board of Directors of the Company on June 10, 2002 and the
Pricing Committee of the Board of Directors of the Company by written action
dated September 23, 2002, this Officer’s Certificate and Authentication Order
is being delivered to the Trustee to establish the terms of a series of
Securities in accordance with Section 301 of the Indenture, to establish the
form of the Securities of such series in accordance with Section 201 of the
Indenture, to request the authentication and delivery of the Securities of such
series pursuant to Section 303 of the Indenture and to comply with the
provisions of Section 102 of the Indenture.

         Capitalized terms used but not defined herein and defined in the Indenture
shall have the respective meanings ascribed to them in the Indenture.

         A.     Establishment of Series Pursuant to Section 301 of the Indenture.
There is hereby established, pursuant to Section 301 of the Indenture, a series
of Securities which shall have the following terms (the lettered clauses set
forth below correspond to the lettered subsections of Section 301 of the
Indenture):

         (a)  The series of Securities hereby being authorized shall bear the title
“6.80% Senior Notes due October 1, 2032” (referred to herein as the “Notes”).

         (b)  There shall be no limit on the aggregate principal amount of Notes
which may be authenticated and delivered under the Indenture; provided,
however, that the aggregate principal amount of the Notes that may be
authenticated and delivered under the Indenture pursuant to this Officer’s
Certificate and Authentication Order shall be limited to $25,000,000 (except
for Notes authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Notes pursuant to Section 304, 305, 306, 406
or 1206 thereof and, except for any Notes which, pursuant to Section 303
thereof, are deemed never to have been authenticated and delivered thereunder).
Additional Notes having the same ranking, interest rate, maturity and other
terms (except issue price) as the Notes previously issued may be issued from
time to time under one or more Officer’s Certificates in accordance with the
Indenture without the consent of Holders of the Notes or any other series of
Securities, and all the Notes issued will constitute a single series of
Securities under the Indenture.

         (c)  Interest on the Notes shall be payable to the Person in whose name the
Note is registered at the close of business on the Regular Record Date (as
defined in paragraph (e) below), except that interest, if any, due at Maturity
will be paid to the person to whom the principal of the Note is paid. Any
installment of interest on a Note not punctually paid or duly provided for
shall forthwith cease to be payable to the Holder on such Regular Record Date,
and
may either be paid to the Person in whose name the 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 Trustee, notice whereof shall be given to
the Holders of the Notes not more than 15 days and 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 on which the
Notes may be listed, or any book-entry system which may be applicable to the
Notes and upon such notice as may be required by such exchange or system, all
as more fully provided in the Indenture.

         (d)  The Notes shall mature and the principal thereof shall be due and
payable, unless previously redeemed or otherwise repaid, on October 1, 2032,
together with any unpaid interest accrued thereon to, but not including, such
date.

         (e)  The Notes shall bear interest from the date of original issuance at
the rate of 6.80% per annum payable quarterly in arrears on January 1, April 1,
July 1 and October 1 of each year (the “Interest Payment Dates”) commencing
January 1, 2003. The amount of interest payable for any such period will be
computed on the basis of a 360-day year consisting of twelve 30-day months.
Interest on the Notes will accrue from the date of original issuance or from
the most recent Interest Payment Date to which interest has been paid or
provided for. The Regular Record Date for payment of interest on the Notes
shall be the December 15, March 15, June 15 or September 15 (whether or not a
Business Day), as the case may be, next preceding the relevant Interest Payment
Date.

         (f)  The principal of and interest on each Note that is not a global
Security shall be payable, and registration of transfer and exchanges of such
Notes may be effected, at the corporate trust office of the Trustee in New
York, New York. Payment of principal of and interest on each Note represented
by a global Security shall be made in immediately available funds to The
Depository Trust Company (“DTC”) or its nominee, as the case may be, as the
sole registered owner and the sole Holder of the Notes represented thereby for
all purposes under the Indenture. Notices and demands to or upon the Company
with respect to the Notes and the Indenture may be served at the Corporate
Trust Office of the Trustee or at the Company at the address of its principal
office specified in the Indenture. The Trustee will initially be the Paying
Agent and the Security Registrar for the Notes.

         (g)  The Notes shall be redeemable at the option of the Company, in whole
or in part, without premium, from time to time on or after October 1, 2007,
upon not less than 30 nor more than 60 days’ prior written notice. The
Redemption Price shall be equal to 100% of the principal amount of the Notes
being redeemed plus any unpaid interest accrued thereon to, but not including,
the Redemption Date.

         (h)  There are no sinking fund or other mandatory redemption provisions
applicable to the Notes, and the Company will not be subject to any obligation
to redeem or repurchase the Notes at the option of a Holder.

         (i)  Not applicable.

         (j)  Not applicable.

         (k)  Not applicable.

2

 

         (l)  Not applicable.

         (m)  Not applicable.

         (n)  Not applicable.

         (o)  Not applicable.

         (p)  Not applicable.

         (q)  Not applicable.

         (r)  The Notes shall be originally issued in global form registered in the
name of DTC or its nominee and will, unless and until the Notes are exchanged
in whole or in part for certificated Notes registered in the names of various
beneficial holders thereof, contain restrictions on transfer, substantially as
described in the form of Notes attached hereto as Exhibit A. A global Note
shall be exchangeable for certificated Notes registered in the names of persons
other than DTC or its nominee only if (i) DTC notifies the Company that it is
unwilling or unable to continue to act as a depositary for such global Notes or
DTC ceases to be a clearing agency registered under the Securities Exchange Act
of 1934, as amended, and in either case, the Company has not appointed a
successor depositary within 90 days of that notice; (ii) an Event of Default on
the Notes has occurred and is continuing; or (iii) the Company, in its sole
discretion, decides not to have the Notes represented by the global Notes. Any
global Note that is exchangeable pursuant to the preceding sentence shall be
exchangeable for certificated Notes registered in such names as DTC shall
direct.

         (s)  Not applicable.

         (t)  Not applicable.

         (u)  Not applicable.

         (v)    (i)  The Notes shall have such other terms and provisions as are
provided in the form set forth in Exhibit A hereto.

                  (ii)  As an additional condition to the Company’s right to satisfy and
discharge the Notes pursuant to Section 701 of the Indenture, the Company shall
be required to deliver to the Trustee an Opinion of Counsel to the effect that,
based upon a change in United States federal income tax law after the date of
issuance of the Notes or a ruling or other formal statement or action to that
effect received from or published by the Internal Revenue Service, (a) the
deposit referred to in Section 701 of the Indenture and the related
satisfaction and discharge of the Company’s obligations with respect to the
Notes will not cause the Holders of the Notes to recognize income, gain or loss
for United States federal income tax purposes and (b) the Holders of the Notes
will be subject to United States federal income tax on the same amounts, in the
same manner and at the same times as would have been the case but for such
deposit and related satisfaction and discharge.

3

 

         B.     Establishment of Form of Note Pursuant to Section 201 of the Indenture.
It is hereby established pursuant to Section 201 of the Indenture that
the Notes shall be substantially in the form attached as Exhibit A hereto.

         C.     Order for the Authentication and Delivery of Debt Securities Pursuant
to Section 303 of the Indenture. It is hereby ordered pursuant to Section 303
of the Indenture that the Trustee authenticate, in the manner provided by the
Indenture, one Note in the aggregate principal amount of $25,000,000 registered
in the name of Cede & Co., which Note has been heretofore duly executed by the
proper officers of the Company and delivered to you as provided in the
Indenture, and to deliver said authenticated Note to A.G. Edwards & Sons, Inc.,
Edward D. Jones & Co., L.P. and Robert W. Baird & Co. Incorporated through the
facilities of DTC against payment therefor on September 27, 2002.

         The undersigned has read the pertinent sections of the Indenture including
the related definitions contained therein. The undersigned has examined the
resolutions adopted by the Board of Directors of the Company on June 10, 2002
and the Pricing Committee of the Board of Directors of the Company by written
action dated September 23, 2002. In the opinion of the undersigned, the
undersigned has made such examination or investigation as is necessary to
enable the undersigned to express an informed opinion as to whether or not the
conditions precedent to (i) the establishment of a series of Securities
pursuant to Section 301 of the Indenture, (ii) the establishment of forms of
such Securities pursuant to Section 201 of the Indenture and (iii) the
authentication of such series of Securities pursuant to Section 303 of the
Indenture have been complied with. In the opinion of the undersigned, such
conditions have been complied with.

Dated: September 23, 2002.

	 	 	 	 	 
	 	 	OTTER TAIL CORPORATION
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
By	 	/s/ Kevin G. Moug
	 	 	 	 	

	 	 	 	 	Kevin G. Moug

Chief Financial Officer and Treasurer

4

 

Exhibit A

         [Unless
this certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation (“DTC”), to the Company or
its agent for registration of transfer, exchange or payment, and any
certificate issued is registered in the name of Cede & Co. or in such other
name as is requested by an authorized representative of DTC (and any payment is
made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

OTTER TAIL CORPORATION

6.80% Senior Notes due October 1, 2032

	 	 	 	 	 
	NO. R-___	 	 	 	
$________________
	
	
	
	

	 	 	 	 	
CUSIP NO. 689648AP8	 

         OTTER TAIL
CORPORATION, a corporation duly organized and existing under
the laws of Minnesota (herein called the “Company,” which term includes any
successor Person under the Indenture referred to below), for value received,
hereby promises to pay to ________________________,
or registered assigns, the principal sum of ________________________
United States Dollars ($________________) on October
1, 2032, and to pay interest thereon from September 27, 2002, or from the most
recent Interest Payment Date to which interest has been paid or duly provided
for, quarterly in arrears on January 1, April 1, July 1 and October 1 of each
year, commencing on January 1, 2003, at the rate of 6.80% per annum, to, but
not including, the date on which the principal hereof is paid or made available
for payment. The amount of interest payable for any period will be computed on
the basis of twelve, 30-day months and a 360-day year. The interest so
payable, and punctually paid or duly provided for, on any Interest Payment Date
will, as provided in such Indenture, be paid to the Person in whose name this
Note (or one or more Predecessor Securities) is registered at the close of
business on the Regular Record Date for such interest, which shall be the
December 15, March 15, June 15 and September 15 (whether or not a Business
Day), as the case may be, next preceding the relevant Interest Payment Date;
except that interest due at Maturity will be paid to the Person to whom
principal of this Note is paid. Any such interest not so punctually paid or
duly provided for shall forthwith cease to be payable to the registered Holder
on such Regular Record Date, and may either be paid to the Person in whose name
this Note (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee, notice whereof shall be given to the Holders of the
Notes not more than 15 days and 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 on which this Note may be
listed, or any book-entry system which may be applicable to this Note and upon
such notice as may be required by such exchange or system, all as more fully
provided in the Indenture.

 

 

         Payment of the principal of and interest on any Note that is not a global
Note will be made at the corporate trust office of the Trustee in New York, New
York. Payment of principal of and interest on any global Note will be made in
immediately available funds to DTC or its nominee, as the case may be, as the
sole registered owner and the sole Holder of the Notes for all purposes under
the Indenture. Payment of the principal of and interest on each Note will 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.

         Additional provisions of this Note are continued below and such provisions
have the same effect as though fully set forth in this place.

         Unless the certificate of authentication hereon has been executed by or on
behalf of the Trustee, by manual signature, this Note shall not be entitled to
any benefit under the Indenture or be valid or obligatory for any purpose.

 

[Remainder of page intentionally left blank; signature page follows.]

2

 

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

	 	 	 	 	 	 	 
	Dated:	 	 	 	 	 	 
	 	 	

	 	 	 	 
	 	 	 	 	 	 	 
	
	
	
	

	 	 	 	 	OTTER TAIL CORPORATION
	
	
	
	

	 	 	 	 	 	 	 
	
	
	
	

	 	 	 	 	By	 	 
	 	 	 	 	 	 	

	 	 	 	 	 	 	Title:
	
	
	
	

	 	 	 	 	 	 	 
	
	
	
	

	Attest:	 	 	 	 	 	 
	
	
	
	

	 	 	 	 	 	 	 
	
	 	 	 	 
	Title:	 	 	 	 	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes of the series designated herein referred to in
the within mentioned Indenture.

	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION,

Trustee
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
By	 	 
	 	 	 	 	

	 	 	 	 	Authorized Signatory

3

 

OTTER TAIL CORPORATION

6.80% Senior Notes due October 1, 2032

         This Note is one of a duly authorized issue of Securities of the Company
(such issue of Securities being herein called the “Notes”), issued under an
Indenture (For Unsecured Debt Securities) dated as of November 1, 1997 (herein
called the “Indenture”) between the Company and U.S. Bank National Association
(formerly First Trust National Association), as trustee (herein called the
“Trustee,” which term includes any successor trustee under the Indenture), to
which Indenture and Officer’s Certificate and Authentication Order (herein
called the “Officer’s Certificate”) filed with the Trustee on September 27,
2002 creating the series designated herein reference is hereby made for a
statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the Notes
and of the terms upon which the Notes are, and are to be, authenticated and
delivered.

         The Notes shall be redeemable at the option of the Company, in whole or in
part, without premium, from time to time on or after October 1, 2007 upon not
less than 30 nor more than 60 days’ prior written notice. The Redemption Price
will be equal to 100% of the principal amount of the Notes being redeemed plus
any unpaid interest accrued thereon to, but not including, the Redemption Date.

         If an Event of Default with respect to the Notes shall occur and be
continuing, the principal of the Notes may be declared due and payable in the
manner, with the effect and subject to the conditions provided in the
Indenture.

         The Indenture and the Officer’s Certificate contain provisions for
satisfaction and discharge at any time of the entire indebtedness of this Note
upon compliance by the Company with certain conditions set forth in the
Indenture and the Officer’s Certificate.

         The Indenture contains provisions permitting the Company and the Trustee,
with the consent of Holders of not less than a majority in principal amount of
the Securities of all series then Outstanding under the Indenture (including
the Notes), considered as one class, to modify the Indenture in a manner
affecting the rights of the Holders of the Notes; provided, that no such
modification may, without the consent of the Holder of each Outstanding Note,
(i) change the Stated Maturity of the principal of, or any installment of
principal of or interest on, any Note, or reduce the principal amount thereof
or the rate of interest thereon (or the amount of any installment of interest
thereon) or change the method of calculating such rate or reduce any premium
payable upon the redemption thereof, or change the coin or currency (or other
property), in which the Notes or any premium or the interest thereon is
payable, or impair the right to institute suit for the enforcement of any such
payment on or after the Stated Maturity of any Note or (ii) reduce the
percentage in principal amount of the Outstanding Notes, the consent of the
Holders of which is required for any such modification, or the consent of the
Holders of which is required for any waiver of compliance with any provision of
the Indenture or of any default thereunder and its consequences, or reduce the
requirements of the Indenture for quorum or voting. The Indenture also
contains provisions permitting Holders of a majority in principal amount of the
Notes at the time Outstanding, on behalf of the Holders of all Notes, to waive

4

 

 compliance by the Company with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Note shall be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Notes
issued upon the registration of transfer hereof or in exchange herefor or in
lieu hereof, whether or not notation of such consent or waiver is made upon
this Note.

         No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this Note
at the times, places and rate, and in the coin or currency, herein prescribed.

         As set forth in, and subject to, the provisions of the Indenture, no
Holder of any Note will have any right to institute any proceeding with respect
to the Indenture or for any remedy thereunder, unless such Holder shall have
previously given to the Trustee written notice of a continuing Event of Default
with respect to the Notes, the Holders of not less than a majority in aggregate
principal amount of the Outstanding Securities of all series in respect of
which an Event of Default shall have occurred and be continuing, considered as
one class, shall have made written request, and offered reasonable indemnity,
to the Trustee to institute such proceeding as trustee, and the Trustee shall
not have received from the Holders of a majority in aggregate principal amount
of the Outstanding Securities of all series in respect of which an Event of
Default shall have occurred and be continuing, considered as one class, a
direction inconsistent with such request and shall have failed to institute
such proceeding within 60 days; provided, however, that such limitations do not
apply to a suit instituted by the Holder hereof for the enforcement of payment
of the principal of or interest on this Note on or after the respective due
dates expressed herein.

         As provided in the Indenture and subject to certain limitations
(including, if this Note is a global Note, the limitations set forth above)
therein set forth, the transfer of this Note is registrable in the Security
Register, upon surrender of this Note for registration of transfer at the
office or agency of the Company in the New York, New York maintained for such
purpose, 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 such Holder’s attorney duly authorized in writing, and
thereupon one or more new Notes, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees. 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.

         Any payment on this Note due on any day which is not a Business Day in New
York, New York need not be made on such day, but may be made on the next
succeeding Business Day with the same force and effect as if made on such due
date, and no interest shall accrue for the period from and after such date,
except that, if such Business Day is in the next succeeding calendar year, such
payment shall be made on the immediately preceding Business Day with the same
force and effect as if made on such due date.

5

 

         Prior to due presentment of this Note for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

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

         All terms used in this Note which are defined in the Indenture shall have
the meanings assigned to them in the Indenture.

         THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES
THEREOF.

6

 

ABBREVIATIONS

         The following abbreviations, when used in this instrument, shall be
construed as though they were written out in full according to applicable laws
or regulations.

	 	 	 	 	 
	TEN COM	 	
-
	 	as tenants in common
	
	
	
	

	 	 	 	 	 
	
	
	
	

	TEN ENT	 	
-
	 	as tenants by the entireties
	
	
	
	

	 	 	 	 	 
	
	
	
	

	JT TEN	 	
-
	 	as joint tenants with right of
survivorship and not as tenants in common

	 	 	 	 	 	 	 
	UNIF GIFT MIN ACT -	 	 	 	Custodian	 	 
	 	 	

	 	 	 	

	 	 	
(Cust)
	 	 	 	(Minor)

under Uniform Gifts to Minors Act

(State)

Additional abbreviations may also be used

though not in the above list.

7

 

ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto                          

PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

 

(Please Print or Typewrite Name and Address,

Including Postal Zip Code, of Assignee)

the within Note and all rights thereunder, and
hereby irrevocably constitutes and appoints 

 

_______________________________________________________ to transfer said Note on the

 

books of the Company, with full power of substitution in the premises.

Dated:

Signature Guaranteed

	 	 	 
	
	 	
 
	
	
	
	

	NOTICE: The signature to this
assignment must correspond with the
name as written upon the face of
the within Note in every
particular, without alteration or
enlargement or any change
whatsoever and must be guaranteed
by a member of the Medallion
Signature Program	 	 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}]]