Document:

exv4w21

 

EXHIBIT 4.21

EXECUTION COPY

	 	 	 
	 

	 	 
	 

FOURTH SUPPLEMENTAL INDENTURE

INTERNATIONAL TRANSMISSION COMPANY

TO

THE BANK OF NEW YORK TRUST COMPANY, N.A.

Trustee

 

Dated as of March 25, 2008

 

Supplementing the First Mortgage and Deed of Trust

Dated as of July 15, 2003

THIS INSTRUMENT CONTAINS AFTER-ACQUIRED PROPERTY PROVISIONS

Establishing a series of Securities designated 5.75% First Mortgage Bonds, Series D,

due April 1, 2018

	 	 	 
	 

	 	 
	 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	 	 	4	 
	 
	 	 	 	 
	Section 101. Definitions
	 	 	4	 
	 
	 	 	 	 
	ARTICLE TWO TITLE, FORM AND TERMS OF THE SERIES D BONDS
	 	 	7	 
	 
	 	 	 	 
	Section 201. Title of the Series D Bonds
	 	 	7	 
	Section 202. Form and Terms of the Series D Bonds
	 	 	7	 
	Section 203. Execution and Authentication
	 	 	9	 
	Section 204. Depositary for Global Securities
	 	 	9	 
	Section 205. Place of Payment
	 	 	9	 
	Section 206. Legends.
	 	 	9	 
	Section 207. Restrictions on Transfer and Exchange of Series D Bonds
	 	 	12	 
	Section 208. Book-Entry Provisions for Restricted Global
Securities and Regulation S Global Securities.
	 	 	13	 
	Section 209. Special Transfer Provisions
	 	 	15	 
	 
	 	 	 	 
	ARTICLE THREE REDEMPTION
	 	 	18	 
	 
	 	 	 	 
	ARTICLE FOUR MAINTENANCE AND RENEWAL
	 	 	19	 
	 
	 	 	 	 
	ARTICLE FIVE REPORTS
	 	 	20	 
	 
	 	 	 	 
	ARTICLE SIX NET EARNINGS CERTIFICATE
	 	 	22	 
	 
	 	 	 	 
	ARTICLE SEVEN LIEN
	 	 	22	 
	 
	 	 	 	 
	ARTICLE EIGHT AMENDMENTS TO INDENTURE
	 	 	22	 
	 
	 	 	 	 
	ARTICLE NINE EFFECTIVENESS OF PROVISIONS
	 	 	25	 
	 
	 	 	 	 
	ARTICLE TEN MISCELLANEOUS PROVISIONS
	 	 	25	 

 i

 

 

          FOURTH SUPPLEMENTAL INDENTURE, dated as of March 25, 2008, between International Transmission
Company, a corporation organized and existing under the laws of the State of Michigan (herein
called the “Company”), having its principal office at 39500 Orchard Hill Place, Suite 200, Novi, MI
48375 and THE BANK OF NEW YORK TRUST COMPANY, N.A. (as successor to BNY MIDWEST TRUST COMPANY), a
national banking association, as Trustee (herein called the “Trustee”), the office of the Trustee
at which on the date hereof its corporate trust business is principally administered being 2 N.
LaSalle Street, Suite 1020, Chicago, Illinois 60602.

RECITALS OF THE COMPANY

          WHEREAS, the Company has heretofore executed and delivered to the Trustee a First Mortgage and
Deed of Trust dated as of July 15, 2003 (the “Original Indenture”) providing for the issuance by
the Company from time to time of its bonds, notes and other evidence of indebtedness to be issued
in one or more series (in the Original Indenture and herein called the “Securities”) and to provide
security for the payment of the principal of and premium, if any, and interest, if any, on the
Securities; and for the purpose of amending and supplementing and further confirming the lien of
the Indenture;

          WHEREAS, the Company has heretofore executed and delivered the following Supplemental
Indentures, each dated as hereinafter set forth:

	 	 	 
	Instrument	 	Date
	First Supplemental Indenture

	 	July 15, 2003
	Second Supplemental Indenture

	 	July 15, 2003
	Amendment to Second Supplemental Indenture

	 	January 19, 2005
	Second Amendment to Second Supplemental Indenture

	 	March 24, 2006
	Third Supplemental Indenture

	 	March 28, 2006

          WHEREAS, the Original Indenture and the First Supplemental Indenture, the Second Supplemental
Indenture and the Third Supplemental Indenture listed in the foregoing paragraph were recorded in
the offices set forth in Exhibit A attached hereto and incorporated herein by reference;

          WHEREAS, there have heretofore been issued under the Indenture Securities of series and in
principal amounts as follows:

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Principal
	Title	 	Issued	 	Amount
	4.45% First Mortgage Bonds, Series
A, due July 15, 2013

	 	July 16, 2003
	 	$	185,000,000	 
	First Mortgage Bonds, Series B, due March 10, 20101

	 	July 16, 2003
	 	$	15,000,000	 
	 
	 	January 4, 2004
	 	$	10,000,000	 
	 
	 	January 19, 2005
	 	$	50,000,000	 
	6.125% First Mortgage Bonds, Series
C, due March 31, 2036

	 	March 28, 2006
	 	$	100,000,000	 

          WHEREAS, in addition to the property described in the Original Indenture, the Company has
acquired certain other property, rights and interests in property; 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 and pursuant to appropriate resolutions of the
Board of Directors, has duly determined to make, execute and deliver to the Trustee this Fourth
Supplemental Indenture (the “Fourth Supplemental Indenture”) to the Original Indenture as permitted
by Sections 2.01, 3.01, 4.01, 4.02 and 14.01 of the Original Indenture in order to establish the
form or terms of, and to provide for the creation and issuance of, a series of Securities to be
designated and in such initial aggregate principal amount as further set out in Section 202 and
Article Eight hereof; and

          WHEREAS, all things necessary to make the Securities issued pursuant to this Fourth
Supplemental Indenture, 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 Fourth Supplemental Indenture a valid, binding and
legal agreement of the Company, have been done;

GRANTING CLAUSES

          NOW, THEREFORE, THIS FOURTH SUPPLEMENTAL INDENTURE WITNESSETH that, 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 Fourth Supplemental Indenture and for other good
and valuable consideration the receipt and sufficiency of which are hereby acknowledged, and in
order to secure the payment of the principal of and premium, if any, and interest, if any, on all
Securities from time to time Outstanding and the performance of the covenants therein and herein
contained and to declare the terms and conditions on which such Securities are secured, the Company
hereby grants, bargains, sells, conveys, assigns, transfers, mortgages, pledges, sets over and
confirms to the Trustee, and grants to the Trustee a security interest in, the following (subject,
however, to the terms and conditions set forth in the Original Indenture and herein):

Granting Clause First

          All right, title and interest of the Company, as of the date of the execution and delivery of
the Original Indenture, as originally executed and delivered, in and to all property,

 

			
	1	 	The principal amount of the First Mortgage Bonds,
Series B, due March 10, 2010 has been repaid in full and is no longer
outstanding.

2

 

real, personal and mixed, located in the State of Michigan (other than Excepted Property),
including without limitation all right, title and interest of the Company in and to the following
property so located (other than Excepted Property): (a) all real property owned in fee, easements
and other interests in real property which are specifically described or referred to in Exhibit
A attached to the Original Indenture, Exhibit D attached to the Third Supplemental Indenture
and Exhibit D attached hereto and incorporated by reference herein; (b) all licenses,
permits to use the real property of others, franchises to use public roads, streets and other
public properties, rights of way and other rights or interests relating to the occupancy or use of
real property; (c) all facilities, machinery, equipment and fixtures for the transmission and
distribution of electric energy including, but not limited to, all plants, air and water pollution
control and sewage and solid waste disposal facilities, switchyards, towers, substations,
transformers, poles, lines, cables, conduits, ducts, conductors, meters, regulators and all other
property used or to be used for any or all of such purposes; (d) all buildings, offices,
warehouses, structures or improvements in addition to those referred to or otherwise included in
clauses (a) and (c) above; (e) all computers, data processing, data storage, data transmission
and/or telecommunications facilities, equipment and apparatus necessary for the operation or
maintenance of any facilities, machinery, equipment or fixtures described or referred to in
clause (c) above; (f) all of the foregoing property in the process of construction; and (g) (except
as expressly excepted in the Original Indenture or herein) all the right, title and interest of the
Company in and to all other property of any kind or nature appertaining to and/or used and/or
occupied and/or enjoyed in connection with any property hereinbefore described;

Granting Clause Second

          Subject to the applicable exceptions permitted by Section 8.09(d), Section 13.03 and
Section 13.05 of the Original Indenture, all right, title and interest of the Company in all
property of every kind and description and wheresoever situate, real, personal and mixed (other
than Excepted Property), including the properties described in Exhibit D hereto, which may
have been acquired by the Company after the date of the Original Indenture or be hereafter
acquired, it being the intention of the Company that all such property acquired by the Company
after the date of the execution and delivery of the Original Indenture, and any Indentures
supplemental thereto, including this Fourth Supplemental Indenture, as originally executed and
delivered, shall be as fully embraced within and subjected to the Lien hereof as if such property
were owned by the Company as of the date of the execution and delivery of the Original Indenture,
and any Indentures supplemental thereto, including this Fourth Supplemental Indenture, as
originally executed and delivered;

Granting Clause Third

          Any Excepted Property, which may, from time to time after the date of the execution and
delivery of this Fourth Supplemental Indenture, as originally executed and delivered, by delivery
or by an instrument supplemental to this Fourth Supplemental Indenture, be subjected to the Lien
hereof by the Company, the Trustee being hereby authorized to receive the same at any time as
additional security hereunder; it being understood that any such subjection to the Lien hereof of
any Excepted Property as additional security may be made subject to such reservations, limitations
or conditions respecting the use and disposition of such property or the proceeds thereof as shall
be set forth in such instrument; and

3

 

Granting Clause Fourth

          All tenements, hereditaments, servitudes and appurtenances belonging or in any wise
appertaining to the aforesaid property, with the reversions and remainders thereof;

Excepted Property

          Expressly excepting and excluding, however, from the Lien of the Indenture all right, title
and interest of the Company in and to all Excepted Property, whether now owned or hereafter
acquired;

          TO HAVE AND TO HOLD all such property, real, personal and mixed, unto the Trustee, its
successors in trust and their assigns forever;

          SUBJECT, HOWEVER, to (a) Liens existing at the date of the execution and delivery of the
Original Indenture, as originally executed and delivered, (b) as to property acquired by the
Company after the date of the execution and delivery of the Original Indenture, as originally
executed and delivered, Liens existing or placed thereon at the time of the acquisition thereof
(including, but not limited to, Purchase Money Liens) and (c) Permitted Liens;

          IN TRUST, NEVERTHELESS, for the equal and ratable benefit and security of the Holders from
time to time of all Outstanding Securities without any priority of any such Security over any other
such Security;

          PROVIDED, HOWEVER, that the right, title and interest of the Trustee in and to the Mortgaged
Property shall cease, terminate and become void in accordance with, and subject to the conditions
set forth in, Article IX of the Original Indenture, and if, thereafter, the principal of and
premium, if any, and interest, if any, on the Securities shall have been paid to the Holders
thereof, or shall have been paid to the Company pursuant to Section 6.03 of the Original Indenture,
then and in that case the Original Indenture shall terminate, and, upon request of the Company, the
Trustee shall execute and deliver to the Company such instruments as the Company shall require to
evidence such termination; otherwise the Original Indenture, and the estate and rights hereby
granted, shall be and remain in full force and effect; and

          THE PARTIES HEREBY COVENANT AND AGREE as follows:

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

     Section 101. Definitions. Each capitalized term that is used herein and is defined in the
Original Indenture shall have the meaning specified in the Original Indenture unless such term is
otherwise defined herein.

     “Adjusted Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal
to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue,

4

 

calculated using
a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal
to the Comparable Treasury Price for such Redemption Date, plus 0.35%.

     “Agent Member” has the meaning given to such term in Section 208(a) hereof.

     “Comparable Treasury Issue” means the United States Treasury security selected by an
Independent Investment Banker as having a maturity comparable to the remaining term of the Series D
Bonds to be redeemed that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities having a maturity
comparable to the remaining term of such Series D Bonds.

     “Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of the
bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of
its principal amount) on the third business day preceding such Redemption Date, as set forth in the
daily statistical release (or any successor release) published by the Federal Reserve Bank of New
York and designated “Composite 3:30 p.m. Quotations for U.S. Government Securities” or (ii) if
such release (or any successor release) is not published or does not contain such prices on such
business day, (A) the average of the Reference Treasury Dealer Quotations for such Redemption Date
(provided that, if there are at least four Reference Treasury Dealers, the average of the Reference
Treasury Dealers Quotations shall be calculated after excluding the highest and lowest such
Reference Treasury Dealer Quotations) or (B) if the Company obtains fewer than four such Reference
Treasury Dealer Quotations, the average of all such Reference Treasury Dealer Quotations.

     “Definitive Securities” has the meaning given to such term in Section 202(e) hereof.

     “Depositary” means DTC, together with any Person succeeding thereto by merger, consolidation
or acquisition of all or substantially all of its assets, including substantially all of its
securities payment and transfer operations.

     “Distribution Compliance Period” has the meaning given to such term in Section 202(c) hereof.

     “DTC” means The Depository Trust Company, a New York corporation, having a principal office at
55 Water Street, New York, New York 10041-0099.

     “Global Securities” has the meaning given to such term in Section 202(c) hereof.

     “Indenture” means the Original Indenture, as amended and supplemented by any and all
indentures supplemental thereto, including this Fourth Supplemental Indenture.

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

     “Initial Purchaser” means Banc of America Securities LLC.

5

 

     “Issue Date” means April 1, 2008, the date on which the Series D Bonds are originally issued
under this Fourth Supplemental Indenture.

     “Non-U.S. Person” means any person not a “U.S. person” as defined in Regulation S.

     “Permanent Regulation S Global Security” has the meaning given to such term in Section 202(c)
hereof.

     “QIB” means “qualified institutional buyer” as defined in Rule 144A under the Securities Act.

     “Reference Treasury Dealer” means (i) Banc of America Securities LLC and its successors and
(ii) three other primary U.S. Government securities dealers in New York City (each, a “Primary
Treasury Dealer”) selected by the Company; provided, however, that if any of the foregoing is not a
Primary Treasury Dealer, the Company will appoint another Primary Treasury Dealer as a substitute.

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

     “Regulation S” means Regulation S promulgated under the Securities Act.

     “Regulation S Definitive Security” has the meaning given to such term in Section 208(c)
hereof.

     “Regulation S Global Security” has the meaning given to such term in Section 202(c) hereof.

     “Regulation S Securities” means Series D Bonds offered and sold as part of their initial
distribution to persons outside the United States in accordance with Regulation S under the
Securities Act.

     “Restricted Definitive Securities” means each of the Definitive Securities that are required
to bear the Restricted Legend.

     “Restricted Global Security” has the meaning given to such term in Section 202(b) hereof.

     “Restricted Legend” has the meaning given to such term in Section 206(a) hereof.

     “Restricted Securities” has the meaning given to such term in Section 206(a) hereof.

     “Rule 144A” means Rule 144A under the Securities Act.

6

 

     “Rule 144A Definitive Securities” has the meaning given to such term in Section 208(c) hereof.

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

     “Series D Bonds” has the meaning given to such term in Section 201 hereof.

     “Significant Subsidiary” means any Subsidiary of the Company that would be a “significant
subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the
Securities Act, as such Regulation is in effect on the Issue Date.

     “Temporary Regulation S Global Security” has the meaning given to such term in Section 202(c)
hereof.

ARTICLE TWO

TITLE, FORM AND TERMS OF THE SERIES D BONDS

     Section 201. Title of the Series D Bonds. This Fourth Supplemental Indenture hereby
creates a series of Securities designated as the “5.75% First Mortgage Bonds, Series D, due
April 1, 2018” of the Company (the “Series D Bonds”).

     Section 202. Form and Terms of the Series D Bonds. For purposes of the Original Indenture,
the Series D Bonds shall constitute a single series of Securities and may be issued in an unlimited
principal aggregate amount, although the initial issuance of the Series D Bonds shall be in the
principal amount of $100,000,000. In accordance with Sections 2.01 and 3.01 of the Original
Indenture, this Fourth Supplemental Indenture hereby provides that the Series D Bonds (x) shall be
payable in such amounts and in the manner as set forth therein (the form of which is substantially
as set forth in Exhibit B attached hereto) and in the Original Indenture at the rates
specified in the Series D Bonds, (y) and shall have the form and such other terms as set forth in
this Fourth Supplemental Indenture, the Series D Bonds and the Original Indenture (except to the
extent specifically provided for in this Fourth Supplemental Indenture or in the Series D Bonds).

     (a) The Series D Bonds issued in transactions exempt from registration under the Securities
Act shall be substantially in the form of Exhibit B attached hereto. The Series D Bonds
may have such notations, legends or endorsements approved as to form by the Company and required,
as applicable, by law, stock exchange or depository rule, agreements to which the Company is
subject and/or usage. The terms of the Series D Bonds set forth in Exhibit B are herein
incorporated by reference and are part of the terms of this Fourth Supplemental Indenture.

     (b) The Series D Bonds will be offered and sold by the Company pursuant to the terms of a
purchase agreement and will be resold initially only to (i) QIBs in reliance on Rule 144A and (ii)
Non-U.S. Persons in reliance on Regulation S. Each such purchaser of the Series D Bonds so
initially resold will be deemed by their acceptance of the Series D Bonds to have
represented and agreed as follows: it (A) (i) is a QIB, (ii) is aware that the sale to it is
being made in reliance on Rule 144A and (iii) is acquiring the Series D Bonds for its own account
or

7

 

for the account of a QIB or (B) is not a U.S. person and is purchasing the Series D Bonds in an
offshore transaction pursuant to Regulation S.

     (c) The Series D Bonds initially resold in reliance on Rule 144A shall be issued, and will
only be available, in the form of one or more Global Securities substantially in the form of
Exhibit B attached hereto with such applicable legends as are provided for in Sections 206
and 208 (each, a “Restricted Global Security”) duly executed by the Company and duly authenticated
by the Trustee as herein provided. The Restricted Global Security shall be in definitive, fully
registered form without coupons and be registered in the name of the Depositary or a nominee of the
Depositary and deposited with the Trustee its corporate trust office, as custodian for the
Depositary. The aggregate principal amount of any Restricted Global Security may from time to time
be increased or decreased by adjustments made on the records of the Trustee, as provided in Section
209 hereof, which adjustments shall be conclusive as to the aggregate principal amount of any such
Global Security.

     (d) The Series D Bonds initially resold outside the United States in reliance on Regulation S
shall be issued, and will only be available, initially in the form of one or more temporary global
Securities substantially in the form of Exhibit B hereto with such applicable legends as
are provided for in Sections 206 and 208 (the “Temporary Regulation S Global Security”) duly
executed by the Company and duly authenticated by the Trustee as herein provided. Except as herein
provided, beneficial ownership interests in the Temporary Regulation S Global Security shall not be
exchangeable for interests in the Restricted Global Security, the permanent Regulation S Global
Securities substantially in the form of Exhibit B hereto (each, a “Permanent Regulation S
Global Security”) duly executed by the Company and duly authenticated by the Trustee as herein
provided or a Definitive Security prior to the expiration of the Distribution Compliance period and
then only upon certification in accordance with Regulation S under the Securities Act, in form
reasonably satisfactory to the Trustee, to the effect that beneficial ownership interests in such
Temporary Regulation S Global Security are owned either by Non-U.S. Persons or U.S. Persons who
purchased such interests in a transaction that did not require registration under the Securities
Act. The Temporary Regulation S Global Security and the Permanent Regulation S Global Security are
collectively referred to herein as the “Regulation S Global Security.” The Regulation S Global
Securities shall be in definitive, fully registered form without coupons and be registered in the
name of the Depositary or a nominee of the Depositary and deposited with the Trustee at its
corporate trust office, as custodian for the Depositary, for credit initially and during the
Distribution Compliance Period to the respective accounts of beneficial owners of such Series D
Bonds (or to such other accounts as they may direct) at Euroclear Bank S.A./N.V. or Clearstream
Banking, Société Anonyme. As used herein, the term “Distribution Compliance Period,” with respect
to the Regulation S Global Securities offered and sold in reliance on Regulation S, means the
period of 40 consecutive days beginning on and including the later of (i) the day on which the
Series D Bonds are first offered to persons other than distributors (as defined in Regulation S) in
reliance on Regulation S and (ii) the Issue Date. The aggregate principal amount of any
Regulation S Global Security may from time to time be increased or decreased by adjustments made on
the records of the Trustee, as provided in Section 209 hereof, which adjustments shall be
conclusive as to the aggregate principal amount of any such Global Security. The Restricted Global
Security and
Regulation S Global Security are sometimes collectively referred to herein as the “Global
Securities.”

8

 

     (e) Series D Bonds issued pursuant to Section 208(c) in exchange for interests in a Global
Security shall be issued substantially in the form of Exhibit B hereto in definitive, fully
registered form without interest coupons, but shall not bear the legend for Global Securities in
Section 208(b) (the “Definitive Securities”). Except as provided herein, owners of beneficial
interests in Global Securities shall not be entitled to physical delivery of Definitive Securities.

     Section 203. Execution and Authentication. The Trustee, upon a Company Order and pursuant
to the terms of the Original Indenture and this Fourth Supplemental Indenture, shall authenticate
and deliver Series D Bonds for original issue in an initial aggregate principal amount of
$100,000,000. Such Company Order shall specify the amount of the Series D Bonds to be
authenticated, the date on which the original issue of Series D Bonds is to be authenticated and
the aggregate principal amount of Series D Bonds outstanding on the date of authentication. All of
the Series D Bonds issued under the Indenture shall be treated as a single series for all purposes
under the Indenture, including, without limitation, waivers, amendments, and offers to purchase.

     Section 204. Depositary for Global Securities. The Depositary for the Series D Bonds
initially shall be DTC.

     Section 205. Place of Payment. The Place of Payment in respect of the Series D Bonds will
be at the principal office or agency of the Company in The City of New York, State of New York or
at the office or agency of the Trustee in The City of New York, State of New York which, at the
date hereof, is located at c/o The Bank of New York, Trust Services Window, 101 Barclay Street, New
York, New York 10286.

     Section 206. Legends.

     (a) All Series D Bonds issued pursuant to this Fourth Supplemental Indenture shall be
“Restricted Securities” and shall bear a legend to the following effect (the “Restricted Legend”)
except as permitted by the following paragraph (b) or (c), as appropriate:

“THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT
FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF
THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF
THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS
SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO A
PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS
DEFINED IN RULE 144A UNDER THE

9

 

SECURITIES ACT) IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION
IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF
AVAILABLE), (IV) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL ACCEPTABLE
TO THE COMPANY IF THE COMPANY SO REQUESTS) OR (V) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (V) IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES,
AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY
PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN
(A) ABOVE.”

Each Restricted Definitive Security shall bear the following legend on the face thereof:

“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.”

Each Temporary Regulation S Global Security shall bear the following legend on the face thereof:

“EXCEPT AS SET FORTH BELOW, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY
REGULATION S GLOBAL SECURITY WILL NOT BE EXCHANGEABLE FOR INTERESTS IN THE PERMANENT
REGULATION S GLOBAL SECURITY OR ANY OTHER SECURITY REPRESENTING AN INTEREST IN THE
BONDS REPRESENTED HEREBY WHICH DO NOT CONTAIN A LEGEND CONTAINING RESTRICTIONS ON
TRANSFER, UNTIL THE EXPIRATION OF THE “40-DAY DISTRIBUTION COMPLIANCE PERIOD”
(WITHIN THE MEANING OF RULE 903(B)(2) OF REGULATION S UNDER THE SECURITIES ACT) AND
THEN ONLY UPON CERTIFICATION IN FORM REASONABLY SATISFACTORY TO THE TRUSTEE THAT
SUCH BENEFICIAL INTERESTS ARE OWNED EITHER BY NON-U.S. PERSONS OR U.S. PERSONS WHO
PURCHASED SUCH INTERESTS IN A TRANSACTION THAT DID NOT REQUIRE REGISTRATION UNDER
THE SECURITIES ACT. DURING SUCH 40-DAY
DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL OWNERSHIP IN THIS TEMPORARY REGULATION S
GLOBAL SECURITY MAY ONLY BE SOLD, PLEDGED OR TRANSFERRED THROUGH EUROCLEAR BANK
S.A./N.V. OR CLEARSTREAM BANKING, SOCIÉTÉ ANONYME AND ONLY (1) TO THE COMPANY, (2)
WITHIN THE UNITED STATES TO A

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PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN
A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (3) OUTSIDE THE UNITED STATES
IN A TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT OR
(4) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN
EACH OF CASES (1) THROUGH (4) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF
ANY STATE OF THE UNITED STATES AND OTHER JURISDICTIONS. HOLDERS OF INTERESTS IN
THIS TEMPORARY REGULATION S GLOBAL SECURITY WILL NOTIFY ANY PURCHASER OF THIS
SECURITY OF THE RESALE RESTRICTIONS REFERRED TO ABOVE, IF THEN APPLICABLE.

BENEFICIAL INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL SECURITY MAY BE EXCHANGED
FOR INTERESTS IN A RESTRICTED GLOBAL SECURITY ONLY IF (1) SUCH EXCHANGE OCCURS IN
CONNECTION WITH A TRANSFER OF THE SECURITIES IN COMPLIANCE WITH RULE 144A, AND
(2) THE TRANSFEROR OF THE TEMPORARY REGULATION S GLOBAL SECURITY FIRST DELIVERS TO
THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS CERTIFICATE) TO THE
EFFECT THAT THE REGULATION S GLOBAL SECURITY IS BEING TRANSFERRED (A) TO A PERSON
WHO THE TRANSFEROR REASONABLY BELIEVES TO BE A QUALIFIED INSTITUTIONAL BUYER WITHIN
THE MEANING OF RULE 144A, (B) TO A PERSON WHO IS PURCHASING FOR ITS OWN ACCOUNT OR
THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A AND (C) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS
OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS.

BENEFICIAL INTERESTS IN A RESTRICTED GLOBAL SECURITY MAY BE TRANSFERRED TO A PERSON
WHO TAKES DELIVERY IN THE FORM OF AN INTEREST IN THE REGULATION S GLOBAL SECURITY,
WHETHER BEFORE OR AFTER THE EXPIRATION OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD,
ONLY IF THE TRANSFEROR FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE
FORM ATTACHED TO THIS CERTIFICATE) TO THE EFFECT THAT IF SUCH TRANSFER IS BEING MADE
IN ACCORDANCE WITH RULE  903 OR 904 OF REGULATION S OR RULE 144 (IF AVAILABLE) AND
THAT, IF SUCH TRANSFER OCCURS PRIOR TO THE EXPIRATION OF THE 40-DAY DISTRIBUTION
COMPLIANCE PERIOD, THE INTEREST TRANSFERRED
WILL BE HELD IMMEDIATELY THEREAFTER THROUGH EUROCLEAR BANK S.A./N.V. OR CLEARSTREAM
BANKING, SOCIÉTÉ ANONYME.”

     (b) Upon any sale or transfer of a Restricted Security pursuant to Rule 144 under the
Securities Act, the Depositary shall, subject to approval by the Company and the provisions of

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Section 3.05 of the Original Indenture, permit the Holder thereof to request the issuance of a
Series D Bond that does not bear one or more of the legends set forth above and rescind any
restrictions on the transfer of such Restricted Security, if the sale or exchange was made in
reliance on Rule 144 and the Holder certifies to that effect in writing to the Depositary.

     (c) Upon a sale or transfer after the expiration of the Distribution Compliance Period
of any Series D Bonds acquired pursuant to Regulation S, all requirements that such Series D Bonds
bear the Restricted Legend shall cease to apply (but requirements requiring such Series D Bonds to
be in global form and bear the global legend in Section 208 shall continue to apply).

     Section 207. Restrictions on Transfer and Exchange of Series D Bonds. All Series D Bonds
issued upon any registration of transfer or exchange of Series D Bonds shall be valid obligations
of the Company, evidencing the same interest therein, and entitled to the same benefits under the
Original Indenture and this Fourth Supplemental Indenture, as the Series D Bonds surrendered upon
such registration of transfer or exchange.

     A Holder may transfer a Series D Bond, or request that a Series D Bond be exchanged for Series
D Bonds in authorized denominations and in an aggregate principal amount equal to the principal
amount of such Series D Bond surrendered for exchange of other authorized denominations, by
surrender of such Series D Bonds to the Trustee with the form of transfer notice thereon duly
completed and executed, and otherwise complying with the terms of the Original Indenture and this
Fourth Supplemental Indenture, including providing evidence of compliance with any restrictions on
transfer, in form satisfactory to the Company, the Trustee and the Security Registrar. No such
transfer shall be effected until, and such transferee shall succeed to the rights of a Holder only
upon, final acceptance and registration of the transfer by the Security Registrar in the Security
Register. Prior to the registration of any transfer of a Series D Bond by a Holder as provided
herein, the Company, the Security Registrar, the Paying Agent and the Trustee shall deem and treat
the person in whose name the Series D Bond is registered on the Security Register as the absolute
owner and holder thereof for the purpose of receiving payment of all amounts payable with respect
to such Series D Bond and for all other purposes, and none of the Company, the Security Registrar,
the Paying Agent or the Trustee shall be affected by any notice to the contrary. Furthermore, the
Depositary shall, by acceptance of a Global Security, agree that transfers of beneficial interests
in such Global Security may be effected only through a book-entry system maintained by the
Depositary (or its agent) and that ownership of a beneficial interest in the Global Security shall
be required to be reflected in a book-entry. When Series D Bonds are presented to the Security
Registrar with a request to register the transfer thereof or to exchange them for other authorized
denominations of a Series D Bond in a principal amount equal to the aggregate principal amount of
Series D Bonds surrendered for exchange, the Security Registrar shall register the transfer or make
the exchange as requested if its requirements for such transactions are met.

     To permit registrations of transfers and exchanges in accordance with the terms, conditions
and restrictions hereof, the Company shall execute, and the Trustee shall authenticate, Series D
Bonds at the Security Registrar’s request. No service charge shall be made to a Holder for any
registration of transfer or exchange of Series D Bonds, but the Company may require payment of a
sum sufficient to cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of Series D Bonds. All Series D Bonds surrendered for

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registration of
transfer or exchange shall be cancelled by the Trustee in accordance with its then customary
procedures.

     Section 208. Book-Entry Provisions for Restricted Global Securities and Regulation S
Global Securities.

     (a) Members of, or participants in, DTC (“Agent Members”) shall have no rights under the
Original Indenture, this Fourth Supplemental Indenture and the Series D Bonds with respect to any
Global Security held on their behalf by DTC or its nominees, and DTC or its nominees may be treated
by the Company, the Trustee and any agent of the Trustee as the absolute owner of such Global
Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent
the Company, the Trustee or any agent of the Trustee from giving effect to any written
certification, proxy or other authorization furnished by DTC or shall impair, as between DTC and
its Agent Members, the operation of customary practices governing the exercise of the rights of a
holder of any Global Security. Upon the issuance of any Global Security, the Security Registrar or
its duly appointed agent shall record DTC or its nominees as the registered holder of such Global
Security.

     (b) Transfers of any Global Security shall be limited to transfers of such Restricted Global
Security or Regulation S Global Security in whole, but not in part, to the Depositary. Each Global
Security shall bear the following legend:

“UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY 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 TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON MADE TO CEDE
& CO.), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN. TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE
BUT NOT IN PART, TO NOMINEES OF THE DEPOSITORY TRUST COMPANY OR TO A SUCCESSOR
THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.”

Beneficial interests in the Restricted Global Security and any Regulation S Global Security may be
transferred in accordance with the rules and procedures of DTC and the provisions of Section 209.

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     (c) Beneficial interests in a Restricted Global Security or a Regulation S Global Security
shall be delivered to all beneficial owners thereof in the form of Rule 144A Definitive Securities
(“Rule 144A Definitive Securities”) or Regulation S Definitive Securities (“Regulation S Definitive
Securities”), as the case may be, if (i) DTC notifies the Trustee that it is unwilling or unable to
continue as Depositary for such Restricted Global Security or Regulation S Global Security, as the
case may be, and a successor depositary is not appointed by the Trustee within 90 days of such
notice, and (ii) after the occurrence and during the continuance of an Event of Default, owners of
beneficial interests in a Global Security with a principal amount aggregating not less than a
majority of the outstanding principal amount of the Global Security advise the Trustee, the Company
and DTC through Agent Members in writing that the continuation of a book-entry system through DTC
or its successor is no longer in their best interests.

     (d) Any beneficial interest in one of the Global Securities that is transferred to a Person
who takes delivery in the form of an interest in another Global Security will, upon such transfer,
cease to be an interest in such Global Security and become an interest in the other Global Security
and, accordingly, will thereafter be subject to all transfer restrictions, if any, and other
procedures applicable to beneficial interests in such other Global Security for as long as it
remains such an interest.

     (e) In connection with the transfer of an entire Restricted Global Security or an entire
Regulation S Global Security to the beneficial owners thereof pursuant to paragraph (c) of this
Section 208, such Restricted Global Security or Regulation S Global Security, as the case may be,
shall be deemed to be surrendered to the Trustee for cancellation, and the Company shall execute,
and the Trustee shall authenticate, to each beneficial owner identified by DTC in exchange for its
beneficial interest in such Restricted Global Security or Regulation S Global Security, as the case
may be, an equal aggregate principal amount of Rule 144A Definitive Securities or Regulation S
Definitive Securities, as the case may be, of authorized denominations. None of the Company, the
Security Registrar, the Paying Agent or the Trustee shall be liable for any delay in delivery of
such instructions and may conclusively rely on, and shall be protected in relying on, such
registration instructions. Upon the issuance of Rule 144A Definitive Securities or Regulation S
Definitive Securities, as the case may be, the Company and the Trustee shall recognize the Person
in whose name the Rule 144A Definitive Securities or Regulation S Definitive Securities, as the
case may be, are registered in the Security Register as Holders hereunder.

     (f) Any Rule 144A Definitive Securities or Regulation S Definitive Securities, as the case may
be, delivered in exchange for an interest in the Restricted Global Security pursuant to paragraph
(c) of this Section 208 shall, except as otherwise provided by paragraph (d) of Section 209, bear
the Restricted Legend.

     (g) Prior to the expiration of the Distribution Compliance Period, any Regulation S Definitive
Security delivered in exchange for an interest in a Regulation S Global Security pursuant to
paragraph (c) of this Section 208 shall bear the Restricted Legend.

     (h) The registered holder of any Restricted Global Security or Regulation S Global Security
may grant proxies and otherwise authorize any Person, including Agent Members and

14

 

Persons that may
hold interests through Agent Members, to take any action which a Holder is entitled to take under
the Original Indenture or this Fourth Supplemental Indenture or the Series D Bonds.

     (i) Neither the Company nor the Trustee shall be liable if the Trustee or the Company is
unable to locate a qualified successor clearing agency.

     Section 209. Special Transfer Provisions. The following provisions shall also apply to the
Series D Bonds:

     (a) Transfers to QIBs. The following provisions shall apply with respect to the
registration of any proposed transfer of a Series D Bond required to bear the Restricted Legend to
a QIB (excluding Non-U.S. Persons):

     (i) The Security Registrar shall register the transfer if such transfer is being made
by a proposed transferor who has checked the box provided for on the form of Series D Bond
stating, or has otherwise advised the Company, the Trustee and the Security Registrar in
writing, that the sale has been made in compliance with the provisions of Rule 144A to a
transferee who has signed the certification provided for on the form of Series D Bond
stating, or has otherwise advised the Company, the Trustee and the Security Registrar in
writing, that it is purchasing the Series D Bond for its own account or an account with
respect to which it exercises sole investment discretion and that it, or the Person on whose
behalf it is acting with respect to any such account, is a QIB within the meaning of Rule
144A, and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as it has requested
pursuant to Rule 144A or has determined not to request such information and that it is aware
that the transferor is relying upon its foregoing representations in order to claim the
exemption from registration provided by Rule 144A.

     (ii) Upon receipt by the Security Registrar of the documents required by clause (i)
above and instructions given in accordance with DTC’s and the Security Registrar’s
procedures therefor, the Security Registrar shall reflect on its books and records the date
of such transfer and an increase in the principal amount of a Restricted Global Security in
an amount equal to the principal amount of the interests in such Regulation S Global
Security being transferred, and the Trustee shall decrease the amount of such Regulation S
Global Security so transferred.

     (b) Transfers of Interests in the Temporary Regulation S Global Security, the Permanent
Regulation S Global Security or the Regulation S Definitive Securities.

     (i) After the expiration of the Distribution Compliance Period, the Security Registrar
shall register any transfer of interests in any Regulation S Global Security or Regulation S
Definitive Security without requiring any additional certification.

     (ii) Until the expiration of the Distribution Compliance Period, interests in the
Temporary Regulation S Global Security may only be sold, pledged or transferred through
Euroclear Bank S.A./N.V. (“Euroclear”) or Clearstream Banking, Société Anonyme
(“Clearstream”) (as indirect participants in the Depositary) or Agent Members

15

 

acting for and
on behalf of Euroclear and Clearstream only (x) for interests in a Permanent Regulation S
Global Security and then only upon certification in form reasonably satisfactory to the
Trustee that interests in such Temporary Regulation S Global Security are owned by either
Non-U.S. Persons or U.S. Persons who purchased such interests in a transaction that did not
require registration under the Securities Act or (y) for interests in the Restricted Global
Security if the transferor first delivers to the Trustee a written transfer notice to the
effect that the Series D Bonds are being transferred to a person (A) who the transferor
reasonably believes to be a QIB; (B) purchasing for its own account or the account of a QIB
in a transaction meeting the requirements of Rule 144A; and (C) in accordance with all
applicable securities laws of the states of the United States and other jurisdictions.

     (c) Transfers to Non-U.S. Persons at Any Time. The following provisions shall apply
with respect to any registration of any transfer of a Series D Bond to a Non-U.S. Person:

     (i) Prior to the expiration of the Distribution Compliance Period, the Security
Registrar shall register any proposed transfer of a Series D Bond to a Non-U.S. Person upon
receipt of a certificate substantially in the form set forth as Exhibit C hereto
from the proposed transferor.

     (ii) After the expiration of the Distribution Compliance Period, the Security Registrar
shall register any proposed transfer to any Non-U.S. Person upon receipt of a certificate
substantially in the form of Exhibit C from the proposed transferor. The Security
Registrar shall promptly send a copy of such certificate to the Company.

     (iii) Upon receipt by the Security Registrar of (x) the documents, if any, required by
clause (ii) and (y) instructions in accordance with DTC’s and the Security Registrar’s
procedures, the Security Registrar shall reflect on its books and records the date of such
transfer and a decrease in the principal amount of such Restricted Global Security in an
amount equal to the principal amount of the beneficial interest in such Restricted Global
Security to be transferred, and, upon receipt by the Security Registrar of instructions
given in accordance with DTC’s and the Security Registrar’s procedures, the Security
Registrar shall reflect on its books and records the date and an increase in the principal
amount of the Regulation S Global Security in an amount equal to the principal amount of the
Restricted Global Security to be transferred, and the Trustee shall decrease the amount of
such Restricted Global Security.

     (d) Restricted Legend. Upon the transfer, exchange or replacement of Series D Bonds
not bearing the Restricted Legend, the Security Registrar shall deliver Series D Bonds that do not
bear the Restricted Legend. Upon the transfer, exchange or replacement of Series D Bonds bearing
the Restricted Legend, the Security Registrar shall deliver only Series D Bonds that bear the
Restricted Legend unless there is delivered to the Security Registrar an opinion of counsel to the
effect that neither such legend nor the related restrictions on transfer are required in order to
maintain compliance with the provisions of the Securities Act.

     (e) General. By acceptance of any Series D Bond bearing the Restricted Legend, each
Holder of such Series D Bond acknowledges the restrictions on transfer of such Series D

16

 

Bond set
forth in such Restricted Legend and otherwise in this Fourth Supplemental Indenture and agrees that
it will transfer such Series D Bond only as provided in such Restricted Legend and otherwise in
this Fourth Supplemental Indenture. In connection with any transfer of Series D Bonds, each Holder
agrees by its acceptance of the Series D Bonds to furnish the Security Registrar or the Trustee
such certifications, legal opinions or other information as either of them may reasonably require
to confirm that such transfer is being made pursuant to an exemption from, or a transaction not
subject to, the registration requirements of the Securities Act and in accordance with the terms
and provisions of this Article Two; provided that the Security Registrar shall not be required to
determine the sufficiency of any such certifications, legal opinions or other information.

     Until such time as no Series D Bonds remain Outstanding, the Security Registrar shall retain
copies of all letters, notices and other written communications received pursuant to Section 208 or
this Section 209. The Trustee, if not the Security Registrar at such time, shall have the right to
inspect and make copies of all such letters, notices or other written communications at any
reasonable time upon the giving of reasonable written notice to the Security Registrar.

     The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance
with any restrictions on transfer imposed under this Fourth Supplemental Indenture or under
applicable law with respect to any transfer of any interest in any Series D Bonds (including any
transfers between or among Agent Members or beneficial owners of interests in any Global Security)
other than to require delivery of such certificates and other documentation or evidence as are
expressly required by, and to do so if and when required by the terms of, this Fourth Supplemental
Indenture, and to examine the same to determine substantial compliance as to form with the
requirements hereof.

     In the event that any Global Security or any portion thereof is exchanged for Definitive
Securities, such other Definitive Securities may be exchanged (by transfer or otherwise) for
Definitive Securities or for beneficial interests in a Global Security (if any is then outstanding)
only in accordance with procedures substantially consistent with this Article Two (including any
certification requirements) and applicable procedures adopted by the Company and the Trustee.

     Until definitive Series D Bonds are ready for delivery, the Company may use temporary Series D
Bonds. Temporary Series D Bonds shall be substantially in the form of definitive Series D Bonds
but may have variations that the Company considers appropriate for temporary
Series D Bonds. Without unreasonable delay, the Company shall deliver definitive Series D
Bonds in exchange for temporary Series D Bonds.

     The Company may issue some or all of the Securities in temporary or permanent global form.
The Company may issue a Global Security only to the Depositary. The Depositary may transfer a
Global Security only to its nominee or to a successor Depositary. A Global Security shall
represent the amount of Series D Bonds specified in the Global Security. A Global Security may
have variations that the Depositary requires or that the Company considers appropriate for such a
security.

17

 

     Beneficial owners of part or all of a Global Security are subject to the rules of the
Depository as in effect from time to time.

     The Company, the Trustee and their agents shall not be responsible for any acts or omissions
of a Depositary, for any Depositary records of beneficial ownership interests or for any
transactions between or among the Depositary, Agent Members and beneficial owners.

     The Company at any time may deliver Series D Bonds to the Trustee for cancellation. The
Paying Agent, if not the Trustee, shall forward to the Trustee any Series D Bonds surrendered to
them for payment or conversion. The Trustee shall cancel all Series D Bonds surrendered for
registration of transfer, exchange, payment or cancellation and shall dispose of cancelled Series D
Bonds according to its then customary practices. The Company may not issue new Series D Bonds to
replace Series D Bonds that it has paid or which have been delivered to the Trustee for
cancellation.

ARTICLE THREE

REDEMPTION

     The Series D Bonds may be redeemed, in accordance with the procedures set forth in the
Original Indenture, on not less than 30 nor more than 60 days’ notice prior to the Redemption Date
to the Holders, given as provided in the Original Indenture, at any time in whole or from time to
time in part, at the option of the Company, at a Redemption Price equal to the greater of (i) 100%
of the principal amount of the Series D Bonds being redeemed and (ii) as determined by an
Independent Investment Banker, the sum of the present values of the remaining scheduled payments of
principal and interest thereon (not including any portion of such payments of interest accrued as
of the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a
360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate, plus, in each case,
accrued and unpaid interest thereon to, but excluding, the Redemption Date; provided, however, that
installments of interest on the Series D Bonds that are due and payable on an interest payment date
falling on or prior to the relevant Redemption Date will be payable to the Holders of such Series D
Bonds registered as such at the close of business on the relevant record date according to the
terms and provisions of the Original Indenture.

     In the event of a partial redemption of the Series D Bonds, the Company will issue new Series
D Bonds for the unredeemed portion in the name of each Holder of the partially redeemed Series D
Bonds.

     If less than all of the Series D Bonds are to be redeemed, the Series D Bonds will be redeemed
by lot, pro rata by the Trustee or by such method of selection as the Trustee shall deem fair and
appropriate and which may, in any case, provide for the selection for redemption of Series D Bonds
and portions of Series D Bonds in amounts of $2,000 and integral multiples of $1,000 in excess
thereof.

     Unless the Company defaults in payment of the Redemption Price, the portion of Series D Bonds
called for redemption will no longer accrue interest on and after the Redemption Date.

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ARTICLE FOUR

MAINTENANCE AND RENEWAL

     (a) The Company covenants and agrees that, so long as any of the Series D Bonds are
Outstanding, the Company will expend during each calendar year, and certify to the Trustee in an
Officer’s Certificate, an amount not less than 2.0% of the average amount of depreciable property
of the Company at the beginning and at the end of such calendar year for one or more of the
following purposes:

	 	(i)	 	capital expenditures for the maintenance and repair of the utility properties
of the Company subject to the Lien of the Original Indenture;
	 
	 	(ii)	 	the construction or acquisition of Property Additions on which the Original
Indenture is a first Lien, subject only to Permitted Liens and Prepaid Liens; or
	 
	 	(iii)	 	the retirement, through purchase, payment or redemption, of Securities issued
under and secured by the Indenture (including any future supplemental indenture
pursuant to the Original Indenture).

     (b) The term “amount of depreciable property” shall mean as of any date the amount of Property
Additions included at such date on the books of the Company which is depreciable, as determined in
accordance with generally accepted accounting principles in the United States. The average of the
amount of depreciable property shall mean the arithmetical average of the amount of depreciable
property at the beginning, and the amount thereof at the end, of such calendar year. Partial years
shall be prorated.

     If, in any calendar year, the required expenditures for the foregoing purposes are not made,
the Company shall deposit with the Trustee on or before the first day of February next succeeding
the close of such calendar year a sum in cash to the extent of any deficiency, after deducting
(subject to the terms of the Indenture) any eligible credit for unused excess expenditures
previously made for such purposes. Such cash may be applied to the redemption at the applicable
Redemption Price, or to the repurchase, of Securities, or may be withdrawn to the extent of 100% of
Property Additions.

     (c) Excess expenditures in any calendar year may be used to comply with the requirements of
any subsequent year or years and Property Additions may be certified to comply with the provisions
of clause (a)(ii) above; provided, that Property Additions so used, and Securities retired through
expenditures so used, cannot be used for other purposes under this
Fourth Supplemental Indenture; provided, further that, (i) no Retired Securities or
expenditures for Funded Property which shall have been made the basis for authentication of
Securities or the release of Mortgaged Property or the withdrawal of deposited cash or Securities
or any other amounts under any other provision of the Indenture, or which shall have been made out
of any insurance moneys or moneys received from the condemnation, sale or other disposition of any
of the Company’s property subject to the Lien of the Indenture, or which shall have previously been
used or applied or certified to the Trustee to comply with this Article Four or any other provision
of the Indenture and (ii) no retirement of Securities which shall have been made with moneys

19

 

applied to such purpose pursuant to any provision of this Article Four or of Section 4.04 or 8.06
of the Original Indenture, shall be certified or used or applied for the purpose of complying with
this Article or withdrawing any moneys paid to the Trustee pursuant to this Article Four. This
Article Four shall not require the annual retirement by the Company of any specific amount of
Outstanding Securities.

     (d) So long as any of the Series D Bonds are Outstanding, on or before the first day of
February of each year beginning February 1, 2009, the Company shall deliver to the Trustee an
Officer’s Certificate showing in reasonable detail: (1) the Company’s expenditures pursuant to
each of subclauses (a)(i), (a)(ii) and (a)(iii) above, or otherwise deposited with the Trustee
pursuant to this Article Four; (2) any eligible credit for excess expenditures from prior periods
and the extent to which the Company elects to have such excess applied to the period next preceding
delivery of such Officer’s Certificate; and (3) the amount of cash the Company is depositing with
the Trustee concurrently with the delivery of such Officer’s Certificate to comply with the
requirements of this Article Four. Such Officer’s Certificate shall also state that it complies
with the requirements of this Article Four.

     (e) At the option of the Company, any moneys paid to and held by the Trustee under the
provisions of subclause (b) of this Section shall, upon the written request of the Company pursuant
to an Officer’s Certificate, (1) be applied by the Trustee to the purchase in the open market of
Securities of any series, at not exceeding the then applicable Redemption Price, if any, at which
Securities of said series may then be redeemed or (2) be paid to or upon the order of the Company
to the extent of (i) the principal amount of Securities of said series purchased or paid by the
Company and delivered to the Trustee, cancelled or for cancellation and (ii) the accrued interest
and the premium, if any, theretofore paid to the Trustee, as hereinabove provided, on such
principal amount of Securities. The Company hereby covenants and agrees that it will pay to the
Trustee from time to time in cash such additional sums, if any, as shall be paid or required to be
paid by the Trustee as or for accrued interest and premium, if any, in respect of any Securities
purchased or redeemed pursuant to the provisions of this Section.

     (f) Any and all Securities, the retirement (through payment or purchase) of which shall be
certified to the Trustee in compliance with the provisions of this Article Four, shall be delivered
to the Trustee at or before the time the same shall be so certified and shall thereupon be
cancelled and destroyed by the Trustee, unless theretofore cancelled and destroyed. All other
Securities received by the Trustee pursuant to any provision of this Article Four shall thereupon
be cancelled and destroyed by the Trustee.

ARTICLE FIVE

REPORTS

     In addition to the reports the Company must provide pursuant to the Original Indenture, the
Company hereby covenants and agrees that:

     (a) whether or not required by the Commission, so long as any Series D Bonds are outstanding,
the Company shall mail to the Trustee and the Holders, within the time periods specified in the
Commission’s rules and regulations all quarterly and annual financial

20

 

information that would be
required to be contained in a filing with the Commission on Forms 10-Q and 10-K if the Company were
required to file such Forms, including a “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” and, with respect to the annual information only, a report on
the annual financial statements by the Company’s independent auditors;

     (b) whether or not required by the Commission, so long as any Series D Bonds are outstanding,
the Company shall mail to the Trustee and the Holders, within five calendar days of the occurrence
thereof, an Officers’ Certificate providing notice of any of the following events, including in
reasonable detail a summary of such event or events and the Company’s plans in respect thereof, if
any:

          (1) any change of control of the Company, including the name of the Person(s) acquiring
control, the amount and source of the consideration used, the basis of the control, the date and
description of the transaction resulting in the change of control, the percentage of beneficial
ownership of voting securities of the Company owned by the Person gaining control, the identity of
the Person from whom control was assumed and the effect of such change of control, if any, on any
material agreements or arrangements of the Company;

          (2) any acquisition or disposition of any significant assets of the Company or any of its
Subsidiaries, whether in one transaction or a series of related transactions;

          (3) any bankruptcy or receivership of the Company or any direct or indirect parent of the
Company;

          (4) any change in the Company’s or any of its Significant Subsidiaries’ auditors;

          (5) any resignation of any director of the Company;

          (6) any change in the fiscal year of the Company; and

          (7) information with respect to the Company’s results of operations, financial condition or
prospects which, in the reasonable judgment of the Company, would be material to a Holder;

provided, that at such time as the Company is required to file reports on Form 8-K, the Company
shall mail to the Trustee and the Holders or post on its website, within the time periods specified
in the Commission’s rules and regulations the information required in current reports on Form 8-K
that are required to be filed with the Commission in lieu of the information preceding this proviso
of this clause (b);

     (c) following the filing of any information with the Commission, the Company shall make such
information available to prospective investors in any Series D Bonds upon their request; and

     (d) furnish to the Holders and to prospective investors in the Series D Bonds, upon the
request of such Holders, the information required to be delivered pursuant to Rule

21

 

144A(d)(4) under
the Securities Act so long as the Series D Bonds are not freely transferable under the Securities
Act.

     At the request of the Company, the Trustee shall assist the Company in the mailing to Holders
of any of the aforesaid information, reports and certificates pursuant to clauses (a), (b) and/or
(c) above. If the Trustee delivers the foregoing information to the Holders on behalf of the
Company, the Company shall not be required to deliver such information. Should the Company deliver
to the Trustee any such information, reports or certificates or any annual reports, information,
documents and other reports pursuant to Section 314(a) of the Trust Indenture Act (if this Fourth
Supplemental Indenture shall become qualified and subject to the Trust Indenture Act), delivery of
such information, reports and certificates, or such annual reports, information, documents and
other reports to the Trustee is for informational purposes only and the Trustee’s receipt of such
shall not constitute notice or constructive notice of any information contained therein or
determinable from information contained therein, including the Company’s compliance with any of its
covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officer’s
Certificates).

ARTICLE SIX

NET EARNINGS CERTIFICATE

     Notwithstanding Section 1.04 or any other provision of the Original Indenture, the Net
Earnings Certificate delivered in connection with the initial issuance of Series D Bonds on the
Issue Date shall be made and signed by an Accountant if it is not signed by an independent public
accountant.

ARTICLE SEVEN

LIEN

     The Series D Bonds are entitled to the benefit of the Lien under the Indenture, including,
without limitation, the Lien on the property referred to in Exhibit A to the Original
Indenture, Exhibit D attached to the Third Supplemental Indenture and Exhibit D
attached hereto.

ARTICLE EIGHT

AMENDMENTS TO INDENTURE

     Subject to Article Nine hereof:

     (a) Clause (c) of the definition of “Permitted Liens” in Section 1.01 of the Original
Indenture is hereby amended by replacing the phrase “Five Million Dollars ($5,000,000)” with the
phrase “Twenty-Five Million Dollars ($25,000,000)” and by replacing the phrase “three percentum
(3%)” with the phrase “five percentum (5%).”

     (b) The definition of “Person” in Section 1.01 of the Original Indenture is hereby amended by
deleting such section in its entirety and substituting in lieu thereof the following: “‘Person’
means any individual, corporation, partnership, limited liability partnership,

22

 

association,
company, joint stock company, joint venture, trust or unincorporated organization or any
Governmental Authority.”

     (c) Sections 1.03(b)(ii)(B) and 1.03(b)(ii)(C) of the Original Indenture are hereby amended by
replacing the phrase “ten-sevenths (10/7)” with the phrase “three-halves (3/2).”

     (d) Sections 4.02(a), 4.02(b)(ii)(L), 6.07(b)(iii), 6.07(c)(iii), 8.03(d), 8.03(f), 8.03(x),
8.03(y), 8.04(d), 8.05, 8.06(a) and 8.07 of the Original Indenture are hereby amended by replacing
the phrase “seventy percentum (70%)” with the phrase “sixty six and two-thirds percentum (66
2/3%).”

     (e) Section 9.04(d)(ii) of the Original Indenture is hereby amended by deleting such section
in its entirety and substituting in lieu thereof the following: “In the event of an election to
have subsection (b) apply to any Securities or any series of Securities, as the case may be, the
Company shall have delivered to the Trustee an Opinion of Counsel, subject to customary assumptions
and exceptions, stating that (1) the Company has received from, or there has been published by, the
Internal Revenue Service a ruling or (2) since the date of this instrument, there has been a change
in the applicable federal income tax law, in either case (1) or (2) to the effect that, and based
thereon such opinion shall confirm that, the Holders of such Securities will not recognize income,
gain or loss for federal income tax purposes as a result of the deposit, Defeasance and discharge
to be effected with respect to such Securities and will be subject to federal income tax on the
same amount, in the same manner and at the same times as would be the case if such deposit,
Defeasance and discharge were not to occur.”

     (f) Section 9.04(d)(iii) of the Original Indenture is hereby amended by deleting such section
in its entirety and substituting in lieu thereof the following: “In the event of an election to
have subsection (c) apply to any Securities or any series of Securities, as the case may be, the
Company shall have delivered to the Trustee an Opinion of Counsel, subject to customary assumptions
and exceptions, to the effect that the Holders of such Securities will not recognize income, gain
or loss for federal income tax purposes as a result of the deposit and Covenant Defeasance to be
effected with respect to such Securities and will be subject to federal income tax on the same
amount, in the same manner and at the same times as would be the case if such deposit and Covenant
Defeasance were not to occur.”

     (g) Section 10.01(c) of the Original Indenture is hereby amended by deleting such section in
its entirety and substituting in lieu thereof the following: “failure to perform or breach of any
covenant or warranty of the Company in this Indenture (other than a covenant or warranty a default
in the performance of which or breach of which is elsewhere in this Section specifically dealt
with) for a period of 60 days (or 90 days in the case of the covenant described under Section
12.04) after there has been given, by registered or certified mail, to the Company by the Trustee,
or to the Company and the Trustee by the Holders of at least twenty-five percentum (25%) in
principal amount of Securities then outstanding, a written notice specifying such default or breach
and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder,
unless the Trustee, or the Trustee and the Holders of a principal amount of Securities not less
than the principal amount of Securities the Holders of which gave such notice, as the case may be,
shall agree in writing to an extension of such period prior to its expiration; provided, however,
that the Trustee, or the Trustee and the Holders of such principal amount of

23

 

Securities, as the
case may be, shall be deemed to have agreed to an extension of such period if corrective action is
initiated by the Company within such period and is being diligently pursued; or.”

     (h) Section 13.01 of the Original Indenture is hereby amended by replacing the phrase “the
Company shall not consolidate with or merge into any other corporation” with the phrase “the
Company shall not consolidate with or merge into any other Person.”

     (i) The first paragraph of Section 13.01(b) of the Original Indenture is hereby amended by
deleting such paragraph in its entirety and substituting in lieu thereof the following: “the
Person formed by such consolidation or into which the Company is merged or the Person which
acquires by conveyance or other transfer, or which leases, the Mortgaged Property as or
substantially as an entirety shall be a Person organized and existing under the laws of the United
States, any State or Territory thereof or the District of Columbia (such Person being hereinafter
sometimes called the “Successor Person”) and shall execute and deliver to the Trustee an indenture
supplemental hereto, in form recordable and reasonably satisfactory to the Trustee, which:”

     (j) Sections 1.01, 1.03, 13.01(b)(i), 13.01(b)(ii), 13.02 and 13.03 of the Original Indenture
is hereby amended by replacing the term “successor corporation” or “Successor Corporation,” as the
case may be, with the term “Successor Person.”

     (k) Section 16.01 of the Original Indenture is hereby amended by deleting such section in its
entirety and substituting in lieu thereof the following: “No recourse shall be had for the payment
of the principal of or premium, if any, or interest, if any, on any Securities, or any part
thereof, or for any claim based thereon or otherwise in respect thereof; or of the indebtedness
represented thereby, or upon any obligation, covenant or agreement under this Indenture, against
any incorporator, organizer, member, manager, stockholder, officer, director or employee, as such,
past, present or future, of the Company or of any predecessor or successor Person (either directly
or through the Company or a predecessor or successor Person), whether by virtue of any
constitutional provision, statute or rule of law or by the enforcement of any assessment or penalty
or otherwise; it being expressly agreed and understood that this Indenture and all the Securities
are solely obligations of the Company and that no personal liability whatsoever shall attach to, or
be incurred by, any incorporator, organizer, member, manager, stockholder, officer,
director or employee, past, present or future, of the Company or its direct or indirect owners or
of any predecessor or successor Person, either directly or indirectly through the Company or its
direct or indirect owners or any predecessor or successor Person, because of the indebtedness
hereby authorized or under or by reason of any of the obligations, covenants or agreements
contained in this Indenture or in any of the Securities or to be implied herefrom or therefrom; and
such personal liability, if any, is hereby expressly waived and released as a condition of, and as
part of the consideration for, the execution and delivery of this Indenture, as originally executed
and delivered, and the issuance of the Securities.”

24

 

ARTICLE NINE

EFFECTIVENESS OF PROVISIONS

     The provisions of this Fourth Supplemental Indenture shall be effective from and after the
date of execution hereof, except as otherwise expressly provided in this section; and the Original
Indenture, as hereby amended, shall remain in full force and effect.

     Article Eight of this Fourth Supplemental Indenture shall become and be effective (i) with
respect to the Series D Bonds from and after the date of execution of this Fourth Supplemental
Indenture; and (ii) with respect to any series of Securities not previously outstanding that are
authenticated by the Trustee and issued by the Company under the Original Indenture (as hereby
amended) subsequent to the date of execution of this Fourth Supplemental Indenture, upon such
issuance but not unless and until (a) all Securities of any series created prior to the date of
execution of this Fourth Supplemental Indenture shall have been cancelled (or surrendered for
cancellation), paid, redeemed or otherwise discharged, at, before, or after maturity thereof, or
(b) the consent of the requisite percentage of the Holders of Securities of all previously created
series to the effectiveness of Article Eight shall have been obtained pursuant to Article XIV or
Article XV of the Original Indenture.

     Article Eight shall become effective with respect to any other outstanding Securities in the
event the consent of the requisite percentage of the Holders of such Securities is obtained as
provided in Article XIV or Article XV of the Original Indenture.

ARTICLE TEN

MISCELLANEOUS PROVISIONS

     The Trustee makes no undertaking or representations in respect of, and shall not be
responsible in any manner whatsoever for and in respect of, the validity or sufficiency of this
Fourth Supplemental Indenture, the Series D Bonds or the proper authorization 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. The Trustee shall not be accountable
for the use or the application by the Company of the Series D Bonds or of the proceeds thereof.

     Except as expressly amended and supplemented hereby, the Original Indenture shall continue in
full force and effect in accordance with the provisions thereof and the Original Indenture is in
all respects hereby ratified and confirmed. This Fourth Supplemental Indenture and all of its
provisions shall be deemed a part of the Original Indenture in the manner and to the extent herein
and therein provided.

     This Fourth Supplemental Indenture and the Series D Bonds shall be governed by and construed
in accordance with the law of the State of New York, except that (i) if this Fourth Supplemental
Indenture shall become qualified and shall become subject to the Trust Indenture Act, this Fourth
Supplemental Indenture and the Series D Bonds shall be governed by the Trust Indenture Act to the
extent that the Trust Indenture Act shall be applicable and (ii) if the law of

25

 

any jurisdiction
wherein any portion of the Mortgaged Property is located shall mandatorily govern the creation of a
mortgage lien on and security interest in, or perfection, priority or enforcement of the Lien of
the Indenture or exercise of remedies with respect to, such portion of the Mortgaged Property, this
Fourth Supplemental Indenture and the Series D Bonds shall be governed by the law of such
jurisdiction to the extent mandatory.

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

26

 

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

	 	 	 	 	 	 	 
	 	 	INTERNATIONAL TRANSMISSION

  COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Daniel J. Oginsky	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Daniel J. Oginsky	 	 
	 

	 	 	 	Title: Vice President and
General Counsel	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST 
COMPANY, N.A., as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Roxane Ellwanger	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Roxane Ellwanger	 	 
	 

	 	 	 	Title: Assistant Vice President	 	 

 

 

	 	 	 
	STATE OF MICHIGAN
	 	)
	 
	 	) ss.:
	COUNTY OF
OAKLAND
	 	)

     On
this 19th day of March 2008, before me personally
appeared Daniel J. Oginsky, to me
known to be Vice President and General Counsel of INTERNATIONAL TRANSMISSION COMPANY, one of the corporations
that executed the within and foregoing instrument, and acknowledged said instrument to be the free
and voluntary act and deed of said Corporation, for the uses and purposes therein mentioned, and on
oath stated that he was authorized to execute said instrument and that the seal affixed, if any, is
the corporate seal of said Corporation.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year
first above written.

/s/ Janet
E. Reed

Janet E. Reed, Notary Public

Livingston, County, Michigan

My
Commission expires: August 26, 2008

Acting in
the County of: Oakland

 

 

	 	 	 
	STATE OF ILLINOIS
	 	)
	 
	 	) ss.:
	COUNTY OF COOK
	 	)

     On
the 20th day of March in the year 2008 before me, the undersigned, personally appeared
Roxane Ellwanger, Assistant Vice President of The Bank of New York Trust Company, N.A., personally
known to me or proved to me on the basis of satisfactory evidence to be the individual whose name
is subscribed to the within instrument and acknowledged to me that she executed the same in her
capacity, and that by her signature on the instrument, the individual or the person upon behalf of
which the individual acted, executed the instrument.

	 	 	 
	 
	/s/ Danita
George

	 	 
	 	 	 
	Print Name: Danita George

	 	 

Notary Public in and for the State of Illinois

Commission expires: May 12, 2009

Drafted by:

Milbank, Tweed, Hadley & McCloy LLP

1 Chase Manhattan Plaza

New York, New York 10005

When recorded return to:

The Bank of New York Trust Company

2 N. LaSalle Street, Suite 1020

Chicago, Illinois 60602

Attention: Global Corporate Trust

 

 

EXHIBIT A

     The recording information for the Original Indenture, the First Supplemental Indenture, the
Second Supplemental Indenture and the Third Supplemental Indenture, each recorded in the Offices of
the Register of Deeds in the Michigan Counties as indicated, is as follows:

	 	 	 	 	 	 	 	 	 
	County	 	Original Indenture	 	First Supp	 	Second Supp	 	Third Supp
	Huron
	 	L991; P520	 	L992; P26	 	L993; P26	 	L1151; P497
	 
	 	 	 	 	 	 	 	 
	Lapeer
	 	L1751; P1	 	L1752; P1	 	L1754; P1	 	L2149; P655
	 
	 	 	 	 	 	 	 	 
	Livingston
	 	L4026; P332	 	L4027; P2	 	L4033; P2	 	L5061; P698
	 
	 	 	 	 	 	 	 	 
	Macomb
	 	L13839; P1	 	L13840; P1	 	L13850; P1	 	L17701; P311
	 
	 	 	 	 	 	 	 	 
	Monroe
	 	L2520; P681	 	L2521; P1	 	L2524; P529	 	L3081; P27
	 
	 	 	 	 	 	 	 	 
	Oakland
	 	L30354; P1	 	L30355; P1	 	L30356; P1	 	L37303; P1
	 
	 	 	 	 	 	 	 	Doc # 34749
	 
	 	 	 	 	 	 	 	 
	Sanilac
	 	L774; P152	 	L775; P424	 	L777; P394	 	L939; P876
	 
	 	 	 	 	 	 	 	 
	St. Clair
	 	L2846; P627	 	L2847; P753	 	L2903; P236	 	L3527; P42
	 
	 	 	 	 	 	 	 	 
	Tuscola
	 	L942; P378	 	L943; P1	 	L944; P124	 	L1075; P261
	 
	 	 	 	 	 	 	 	Doc #
	 
	 	 	 	 	 	 	 	200600878885
	 
	 	 	 	 	 	 	 	 
	Washtenaw
	 	L4284; P485	 	L4284; P486	 	L4285; P136	 	L4547; P123
	 
	 	 	 	 	 	 	 	 
	Wayne
	 	L38882; P1	 	L38882; P1324	 	L38882; P1991	 	L44455; P231
	 
	 	L38882; P149	 	L38882; P1377	 	L38882; P2031	 	 
	 
	 	L38882; P289	 	L38882; P1433	 	L38882; P2066	 	 
	 
	 	L38882; P439	 	L38882; P1492	 	L38882; P2104	 	 
	 
	 	L38882; P584	 	L38882; P1549	 	L38882; P2145	 	 
	 
	 	L38882; P733	 	L38882; P1604	 	L38882; P2181	 	 
	 
	 	L38882; P880	 	L38882; P1661	 	L38882; P2220	 	 
	 
	 	L38882; P1028	 	L38882; P1714	 	L38882; P2255	 	 
	 
	 	L38882; P1175	 	L38882; P1771	 	L38882; P2294	 	 
	 
	 	L38877; P102	 	L38882; P1826	 	L38882; P2330	 	 
	 
	 	L38877; P247	 	L38882; P1882	 	L38882; P2368	 	 
	 
	 	L38877; P395	 	L38882; P1933	 	L38882; P2403	 	 

A-1

 

EXHIBIT B

[FORM OF FACE OF SERIES D BONDS]

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY 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 TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY OR SUCH OTHER NAME AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON MADE TO
CEDE & CO.), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. TRANSFERS OF THIS
GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE BUT NOT IN PART, TO NOMINEES OF THE
DEPOSITORY TRUST COMPANY OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF
PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.]*

[THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE
OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY
IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM
THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY MAY BE
OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO A PERSON WHOM THE SELLER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE UNITED STATES IN AN OFFSHORE
TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (IV) IN
ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND
BASED UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY IF THE COMPANY SO REQUESTS) OR
(V) PURSUANT TO AN

 

			
	*	 	To be included on the face of each Global Security.

B-1

 

EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (V) IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE
HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM
IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.]**

[IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE SECURITY 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.]***

[EXCEPT AS SET FORTH BELOW, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL
SECURITY WILL NOT BE EXCHANGEABLE FOR INTERESTS IN THE PERMANENT REGULATION S GLOBAL SECURITY OR
ANY OTHER SECURITY REPRESENTING AN INTEREST IN THE BONDS REPRESENTED HEREBY WHICH DO NOT CONTAIN A
LEGEND CONTAINING RESTRICTIONS ON TRANSFER, UNTIL THE EXPIRATION OF THE “40-DAY DISTRIBUTION
COMPLIANCE PERIOD” (WITHIN THE MEANING OF RULE 903(B)(2) OF REGULATION S UNDER THE SECURITIES ACT)
AND THEN ONLY UPON CERTIFICATION IN FORM REASONABLY SATISFACTORY TO THE TRUSTEE THAT SUCH
BENEFICIAL INTERESTS ARE OWNED EITHER BY NON-U.S. PERSONS OR U.S. PERSONS WHO PURCHASED SUCH
INTERESTS IN A TRANSACTION THAT DID NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT. DURING SUCH
40-DAY DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL OWNERSHIP IN THIS TEMPORARY REGULATION S GLOBAL
SECURITY MAY ONLY BE SOLD, PLEDGED OR TRANSFERRED THROUGH EUROCLEAR BANK S.A./N.V. OR CLEARSTREAM
BANKING, SOCIÉTÉ ANONYME AND ONLY (1) TO THE COMPANY, (2) WITHIN THE UNITED STATES TO A PERSON WHOM
THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER
THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (3) OUTSIDE THE UNITED
STATES IN A TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT OR (4) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (1) THROUGH (4) IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND OTHER
JURISDICTIONS. HOLDERS OF INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL SECURITY WILL NOTIFY ANY
PURCHASER OF THIS SECURITY OF THE RESALE RESTRICTIONS REFERRED TO ABOVE, IF THEN APPLICABLE.

 

			
	**	 	To be included on the face of each Restricted Global
Security and Restricted Definitive Security.
	 
	***	 	To be included on the face of each Restricted
Definitive Security.

B-2

 

BENEFICIAL INTERESTS IN THIS TEMPORARY REGULATION  S GLOBAL SECURITY MAY BE EXCHANGED FOR INTERESTS
IN A RESTRICTED GLOBAL SECURITY ONLY IF (1) SUCH EXCHANGE OCCURS IN CONNECTION WITH A TRANSFER OF
THE SECURITIES IN COMPLIANCE WITH RULE 144A, AND (2) THE TRANSFEROR OF THE TEMPORARY REGULATION S
GLOBAL SECURITY FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS
CERTIFICATE) TO THE EFFECT THAT THE REGULATION  S GLOBAL SECURITY IS BEING TRANSFERRED (A) TO A
PERSON WHO THE TRANSFEROR REASONABLY BELIEVES TO BE A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A, (B) TO A PERSON WHO IS PURCHASING FOR ITS OWN ACCOUNT OR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A AND (C) IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER
JURISDICTIONS.

BENEFICIAL INTERESTS IN A RESTRICTED GLOBAL SECURITY MAY BE TRANSFERRED TO A PERSON WHO TAKES
DELIVERY IN THE FORM OF AN INTEREST IN THE REGULATION S GLOBAL SECURITY, WHETHER BEFORE OR AFTER
THE EXPIRATION OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD, ONLY IF THE TRANSFEROR FIRST DELIVERS
TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS CERTIFICATE) TO THE EFFECT THAT
IF SUCH TRANSFER IS BEING MADE IN ACCORDANCE WITH RULE  903 OR 904 OF REGULATION  S OR RULE 144 (IF
AVAILABLE) AND THAT, IF SUCH TRANSFER OCCURS PRIOR TO THE EXPIRATION OF THE 40-DAY DISTRIBUTION
COMPLIANCE PERIOD, THE INTEREST TRANSFERRED WILL BE HELD IMMEDIATELY THEREAFTER THROUGH EUROCLEAR
BANK S.A./N.V. OR CLEARSTREAM BANKING, SOCIÉTÉ ANONYME.]****

 

			
	****	 	To be included on the face of each Temporary
Regulation S Global Security.

B-3

 

INTERNATIONAL TRANSMISSION COMPANY

5.75% FIRST MORTGAGE BONDS, SERIES D, DUE APRIL 1, 2018

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 $	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	No.
	 	 	 	 	 	CUSIP	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	ISIN	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 

     INTERNATIONAL TRANSMISSION COMPANY, a corporation duly organized and existing under the laws
of the State of Michigan (herein called the “Company,” which term includes any successor under the
Indenture hereinafter referred to), for value received, hereby promises to pay to
                     or registered assigns, the principal sum of $                     on April 1, 2018
and to pay interest thereon from April 1, 2008, or from the most recent Interest Payment Date to
which interest has been paid or duly provided for, semi-annually in arrears on April 1 and
October 1 in each year, commencing October 1, 2008, at the rate per annum provided in the title
hereof, until the principal hereof is paid or made available for payment, and, subject to the terms
of the Indenture hereinafter referenced, at the rate of 5.75% per annum on any overdue principal
and premium and (to the extent that the payment of such interest shall be legally enforceable) on
any overdue installment of interest, from the dates such amounts are due until they are paid or
made available for payment, and such interest shall be payable on demand. 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 Series D Bond is registered at the close of
business on the Regular Record Date for such interest, which shall be March 15 or September 15
(whether or not a Business Day), as the case may be, immediately preceding such Interest Payment
Date. 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 be paid to the Person in whose name this
Series D Bond 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 as provided in
the Indenture. Interest will be computed on the basis of a 360-day year of 30-day months.

     Payment of the principal of (and premium, if any) and interest on the Series D Bonds will be
made at the office or agency of the Company maintained for that purpose in the City of New York,
State of New York or at the office or place of business of the Trustee or its successor in trust
under the Original Indenture hereinafter referenced, in such coin or currency of the United States
of America as at the time of payment is legal tender for the payment of public and private debts;
[if this Security is not a Global Security, insert — provided, however, that at the option of the
Company payments of interest may be made by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register] [if this Security is a Global
Security, insert—provided, however, that except with respect to payments of principal, payments
shall be made by wire transfer of immediately available funds with respect to payments in respect
of Global Securities if the Holders thereof have provided wire instructions in respect of such
payments to the Company or the Paying Agent]. Holders must surrender Series D Bonds to a Paying
Agent to collect principal payments.

B-4

 

     Reference is hereby made to the further provisions of the Series D Bonds set forth on the
reverse hereof, which further provisions shall for all purposes have the same effect as if set
forth at this place.

     Unless the certificate of authentication hereon has been manually executed by or on behalf of
the Trustee under the Indenture (hereinafter referenced), this Series D Bond shall not be entitled
to any benefits under the Indenture (hereinafter referenced), or be valid or obligatory for any
purpose.

     IN WITNESS WHEREOF, INTERNATIONAL TRANSMISSION COMPANY has caused this Series D Bond to be
duly executed.

	 	 	 	 	 	 	 
	Dated:	 	INTERNATIONAL TRANSMISSION

COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	BY	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

B-5

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Series D Bonds of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 	 	 
	Date:	 	THE BANK OF NEW YORK TRUST

 COMPANY, N.A,	 	 
	 	 	 	 	as Trustee,	 	 
	 

	 	BY:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Signatory	 	 

B-6

 

[FORM OF REVERSE OF SERIES D BOND]

     This 5.75% First Mortgage Bond, Series D, due April 1, 2018 is one of the duly authorized
issue of bonds, notes or other evidences of indebtedness of the Company (herein sometimes referred
to as the “Series D Bonds”), of the series hereinafter specified, all issued or to be issued under
and pursuant to the Original Indenture dated as of July 15, 2003, as supplemented by the Fourth
Supplemental Indenture, dated as of March 25, 2008 (as so supplemented, the “Indenture”), duly
executed and delivered by the Company and The Bank of New York Trust Company, N.A., as Trustee
(herein called the “Trustee,” which term includes any successor trustee under the Indenture), to
which Indenture and any other indentures supplemental thereto reference is hereby made for a
statement of the respective rights, obligations, duties and immunities thereunder of the Trustee
and any agent of the Trustee, any Paying Agent, the Company and the Holders of the Series D Bonds
and of the terms upon which the Series D Bonds are issued and are to be authenticated and
delivered. This Security is one of the series designated on the face hereof, which series is
initially limited in aggregate principal amount to $100,000,000; provided that the Company may from
time to time or at any time, without the consent of the Holders of the Series D Bonds, issue
additional Securities, including additional Series D Bonds, which additional Series D Bonds shall,
if issued, increase the aggregate principal amount of, and shall be consolidated and form a single
series with, the Series D Bonds issued on the Issue Date. By the terms of the Indenture,
additional Securities of other separate series, which may vary as to date, aggregate principal
amount, Stated Maturity, interest rate or method of calculating the interest rate, redemption
provisions and in other respects as therein provided, may be issued in an unlimited amount.

     Series D Bonds may be redeemed in accordance with the procedures set forth in the Original
Indenture on not less than 30 nor more than 60 days’ notice prior to the Redemption Date thereof to
the Holder thereof, given as provided in the Indenture, as a whole or in part, at any time at the
option of the Company, at a Redemption Price equal to the greater of (i) 100% of the principal
amount of the Series D Bonds being redeemed and (ii) as determined by an Independent Investment
Banker, the sum of the present values of the remaining scheduled payments of principal and interest
thereon (not including any portion of such payments of interest accrued as of the Redemption Date)
discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of
twelve 30-day months) at the Adjusted Treasury Rate, plus, in each case, accrued and unpaid
interest thereon to, but excluding, the Redemption Date; provided, however, that installments of
interest on the Series D Bonds that are due and payable on an interest payment date falling on or
prior to the relevant Redemption Date will be payable to the Holder of the Series D Bond registered
as such at the close of business on the relevant Record Date according to the terms and provisions
of the Indenture.

     The Series D Bonds are subject to the further redemption provisions and procedures set forth
in the Indenture.

     The Indenture contains provisions for defeasance of (a) the entire indebtedness of the Series
D Bonds and (b) certain restrictive covenants upon compliance by the Company with certain
conditions set forth in the Indenture.

B-7

 

     If an Event of Default with respect to the Series D Bonds shall occur and be continuing, the
unpaid principal of the Series D Bonds may be declared due and payable in the manner and with the
effect provided in the Indenture.

     The 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 Indenture at any time by the Company and the
Trustee with the consent of the Holders of a majority in aggregate principal amount of the
Securities at the time Outstanding of all series to be affected (voting as a class). The Indenture
also contains provisions permitting the Holders of specified percentages 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 Indenture and
certain past defaults under the Indenture and their consequences. Any such consent or waiver by
the Holder of the Securities of this series shall be conclusive and binding upon such Holder and
upon all future Holders of the Securities of this series and of any Securities of this series
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 the Securities of this series.

     No reference herein to the Indenture and no provision of the Series D Bonds or of the
Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional,
to pay the principal of (and premium, if any) and interest, if any, on the Series D Bonds at the
times, place and rate, and in the coin or currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of the Series D Bonds is registrable in the Security Register, upon surrender of the
Series D Bonds for registration of transfer at the office or agency of the Company in any place
where the principal of (and premium, if any) and interest, if any, on the Series D Bonds 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 Series D Bonds of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

     The Series D Bonds are issuable only in registered form without coupons in denominations of
$2,000 and integral multiples of $1,000 in excess thereof. As provided in the Indenture and
subject to certain limitations therein set forth, the Series D Bonds are exchangeable for a like
aggregate principal amount of Series D Bonds of like tenor of a different authorized denomination,
as requested by the Holder surrendering the same.

     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 the Series D Bonds for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name the Series D
Bonds are registered as the owner hereof for all purposes, whether or not the Series D

B-8

 

Bonds be overdue, and neither the Company, the Trustee nor any such agent shall be affected by
notice to the contrary.

     The Series D Bonds are not subject to any sinking fund.

     The Series D Bonds are entitled to the benefit of the Lien under the Indenture.

     Each Holder, by accepting a Series D Bond, agrees to be bound by all the terms and provisions
of the Indenture, as the same may be amended from time to time in accordance with its terms.

     This Series D Bond shall be governed by and construed in accordance with the law of the State
of New York, except that (i) if the Fourth Supplemental Indenture governing this Series D Bond
shall become qualified and shall become subject to the Trust Indenture Act, this Series D Bond
shall be governed by the Trust Indenture Act to the extent that the Trust Indenture Act shall be
applicable and (ii) if the law of any jurisdiction wherein any portion of the Mortgaged Property is
located shall mandatorily govern the creation of a mortgage lien on and security interest in, or
perfection, priority or enforcement of the Lien of the Indenture or exercise of remedies with
respect to, such portion of the Mortgaged Property, the Series D Bond shall be governed by the law
of such jurisdiction to the extent mandatory.

     All capitalized terms used but not defined in this Series D Bond shall have the meanings
assigned to them in the Indenture.

B-9

 

FORM OF TRANSFER NOTICE

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

Insert Taxpayer Identification No.

                                        

                                        

please print or typewrite name and address including zip code of assignee

                                        

the within Series D Bond and all rights thereunder, hereby irrevocably constituting and appointing

                                        

attorney to transfer said Series D Bond on the books of the Security Registrar with full power of
substitution in the premises.

B-10

 

[THE FOLLOWING PROVISION TO BE INCLUDED

ON ALL SERIES D BONDS,

EXCEPT REGULATION S GLOBAL SECURITIES AND

REGULATION S DEFINITIVE SECURITIES]

     In connection with any transfer of this Certificate occurring prior to the date that is the
earlier of the date of an effective Registration Statement or the date one year (or such shorter
period of time as permitted by Rule 144 under the Securities Act or any successor provision
thereunder) after the later of the original issuance of this Series D Bond or the last date on
which this Series D Bond was held by International Transmission Company or any affiliate of
International Transmission Company, the undersigned confirms that without utilizing any general
solicitation or general advertising that:

[Check One]

[___] (a) the Series D Bonds are being transferred to a person whom we reasonably believe is a
“qualified institutional buyer” (as defined in Rule 144A under the Securities Act of 1933) (a
“QIB”) that purchases for its own account or for the account of one or more QIBs to whom notice has
been given that the resale, pledge or transfer is being made in reliance on Rule 144A under the
Securities Act;

or

[___] (b) the Series D Bonds are being transferred other than in accordance with (a) above and
documents are being furnished that comply with the conditions of transfer set forth in this Series
D Bond and the Indenture.

If neither of the foregoing boxes is checked, the Security Registrar shall not be obligated to
register this Series D Bond in the name of any Person other than the Holder hereof unless and until
the conditions to any such transfer of registration set forth herein and in Section 209 of the
Fourth Supplemental Indenture shall have been satisfied.

	 	 	 
	Date: [                    , ___]

	 	By:                                         
	 
	 	 
	 

	 	[Name of Transferor]              
	 
	 	 
	 

	 	NOTE: The signature must correspond with the name as written
upon the face of the within-mentioned instrument in every
particular, without alteration or any change whatsoever.

Signature Guarantee:                                         

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

B-11

 

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.

B-12

 

EXHIBIT C

[Form of Regulation S Transfer Certificate]

[Date]

International Transmission Company (the “Company”)

39500 Orchard Hill Place

Novi, Michigan 48375

Attention: General Counsel

The Bank of New York Trust Company, N.A. (the “Trustee”)

2 N. LaSalle Street, Suite 1020

Chicago, Illinois 60602

Attention: Global Corporate Trust

Dear Ladies and Gentlemen:

     In connection with our proposed transfer of $                     aggregate principal amount of
5.75% First Mortgage Bonds, Series D, due April 1, 2018 (the “Series D Bonds”) of the Company, we
confirm that:

	 	(i)	 	the offer of the Series D Bonds was not made to a person in the United States;
	 
	 	(ii)	 	either (i) at the time the buy order was originated, the transferee was outside
the United States or we and any person acting on our behalf reasonably believed that
the transferee was outside the United States or (ii) the transaction was executed in,
on or through the facilities of a designated off-shore securities market and neither we
nor any person acting on our behalf knows that the transaction has been pre-arranged
with a buyer in the United States;
	 
	 	(iii)	 	no directed selling efforts have been made in the United States in
contravention of the requirements of Rule 903(a) or Rule 904(a) of Regulation S, as
applicable; and
	 
	 	(iv)	 	the transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act.

     In addition, if the sale is made during the Distribution Compliance Period and the provisions
of Rule 903(b)(2) or Rule 904(b)(1) of Regulation S are applicable thereto, we confirm that such
sale has been made in accordance with the applicable provisions of Rule 903(b)(2) or Rule
904(b)(1), as the case may be.

C-1

 

     The Company and the Trustee are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in any administrative or
legal proceedings or official inquiry with respect to the matters covered hereby. Terms used in
this certificate have the meanings set forth in Regulation S.

Very truly yours,

[Name of Transferor]

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Authorized Signature	 	 

C-2

 

EXHIBIT D

DESCRIPTION OF PROPERTIES

     The following properties of the Company, owned as of the date hereof, have been acquired by
the Company subsequent to the date of the Third Supplemental Indenture:

D-1exv10w21

 

EXHIBIT
10.21

FIRST AMENDMENT TO AGREEMENT

     This
First Amendment, dated as of November 1st, 2007 (the “Amendment”), between
Superconductor Technologies, Inc., a Delaware corporation
(“STI”), and Hunchan BaoLi
Communication Co., Ltd. (“BAOLI”) amends that certain Agreement, dated as of August 17, 2007 (the
"“Agreement”), between STI and BAOLI.

RECITALS

	A.	 	Pursuant to the Agreement, BAOLI agreed to purchase and STI agreed to sell
$15,000,000 of shares of STFs Common. Stock, par value $0.001 per share (the
“Common Stock”), at a per share price of $1.6275. The Agreement provides that it may
be amended by the written agreement of STI and BAOLI, and STI and BAOLI agree to amend the
Agreement as set forth below.
	 
	B.	 	This Amendment provides: (i) that upon full payment of the Purchase Price by BAOLI to STI,
STI will instead be obligated to deliver 2,148,296 shares of Common Stock (the “Common
Shares”) and 706,829 shares of newly created Series A Convertible Preferred Stock of the
Corporation (the “Preferred Shares") (with the rights and privileges set forth in the
Certificate of Designations attached hereto as Exhibit B and convertible into
7,068,290 shares of Common Stock), and (ii) BAOLI with registration rights with respect to the
Common Shares as set forth in Exhibit C.

	1.	 	PURCHASE AND SALE.

     The Agreement is hereby amended so that the term “Shares” consists of the Common
Shares and the Preferred Shares. The purchase price per Common Share is $1.6275 and the purchase
price per Preferred Share Is $16.275, with the total purchase price for the Shares equal to
$15,000,000. On a fully converted basis, BAOLI will receive the same number of Common Shares as
under the Agreement,

	2.	 	REGISTRATION RIGHTS

     STI hereby grants to BAOLI the registration rights related to the Common Shares set forth in
Exhibit C,

	3.	 	LEGALITY OF INVESTMENT

     3.1.
Legal Consent to the Amendment, BAOLI and each Purchaser represents and
warrants that the execution and performance of the Amendment are consented and approved by
the Board of Directors of BAOLI and such Purchaser and that the Amendment is legally binding
on BAOLI and such Purchaser. BAOLI and each Purchaser also make the representations and
warranties set forth in Exhibit A.

     3.2. Legality of the Offer to Amend. STI represents and warrants that the execution
and performance of the Amendment are for the corporate interest of
SIT's development and STI has
obtained all and any necessary internal approval and STI is legally bound by each of the Agreement
and the Amendment, and in addition, subject to the representations and warranties of
each Purchaser contained in Exhibit A upon which STI hereby relies complies with the

 

 

EXHIBIT
10.21

provisions of the laws and regulations of United States of America, including but not
limited to the pertinent SEC requirements.

	4.	 	TERMS AND EFFECT OF AMENDMENT

     Except as amended by this Amendment, the Agreement remains in full force and effect.
Terms used in this Amendment that are not defined in this Amendment shall have the same
meaning given to such terms in the Agreement. Terms defined in this Amendment shall be
applicable to the Agreement, as amended hereby.

     IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first written
above.

	 	 	 	 	 
	 	SUPERCONDUCTOR TECHNOLOGIES, INC

 	 
	 	By:  	/s/ Jeffrey Quiram
 	 
	 	 	Name:  	Jeffrey Quiram 	 
	 	 	Title:  	President & CEO 	 
	 

	 	 	 	 	 
	 	BAOLI COMMUNICATIONS CO. LTD

 	 
	 	By:  	/s/ (Signature)
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

2

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