Document:

kerkenezovconsultingagreemen.htm - Generated by SEC Publisher for SEC Filing

 

  CONSULTING
AGREEMENT

THIS
AGREEMENT is dated and effective as of
the 12th day of March, 2013.

BETWEEN:

 

NORSTRA ENERGY INC.

 (the “Company”)

AND:

DALLAS KERKENEZOV

(the “Contractor”)

WHEREAS:

A.                
             The Company
has retained the Contractor to provide the Company with the services of CFO, (the “Services”) in regards to the Company’s
operations as an oil and gas exploration company;

B.                
             The
Contractor has agreed to provide the Services to the Company on the terms and
conditions of this Agreement.

                         

NOW THEREFORE THIS
AGREEMENT WITNESSES that in consideration of the mutual covenants and promises
set forth herein, and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged by each, the parties hereto
agree as follows:

Article I

APPOINTMENT AND AUTHORITY OF CONTRACTOR

1.1                                                             
Appointment of Contractor.  The Company hereby appoints the Contractor to
perform the Services for the benefit of the Company as hereinafter set forth,
and the Company hereby authorizes the Contractor to exercise such powers as
provided under this Agreement.  The Contractor accepts such appointment on the
terms and conditions herein set forth.  

1.2                   Performance of Services. 
The Services hereunder have been and shall continue to be provided on the basis
of the following terms and conditions:

(a)   
the Services shall include those
services customarily provided by a CFO of public companies, including  such
other management advisory services as may be reasonably requested by the Company
from time to time. 

(b)  
the Contractor shall report
directly to the Board of Directors of the Company;

 

 

 

	

  2

  

 

(c)   
the Contractor shall faithfully,
honestly and diligently serve the Company and cooperate with the Company and
utilize maximum professional skill and care to ensure that all services
rendered hereunder, including the Services, are to the satisfaction of the
Company, acting reasonably, and the Contractor shall provide any other services
not specifically mentioned herein, but which by reason of the Contractor's
capability the Contractor knows or ought to know to be necessary to ensure that
the best interests of the Company are maintained; and

(d)  
the Company shall report the
results of the Contractor's duties hereunder as may be requested by the Company
from time to time.

1.4                   Independent Contractor. 
In performing the Services, the Contractor shall be an independent contractor
and not an employee or agent of the Company, except that the Contractor shall
be the agent of the Company solely in circumstances where the Contractor must
be the agent to carry out its obligations as set forth in this Agreement. 
Nothing in this Agreement shall be deemed to require the Contractor to provide
the Services exclusively to the Company and the Contractor hereby acknowledges
that the Company is not required and shall not be required to make any
remittances and payments required of employers by statute on the Contractor's
behalf and the Contractor or any of its agents shall not be entitled to the
fringe benefits provided by the Company to its employees.

Article II

CONTRACTOR'S AGREEMENTS

2.1                   Expense Statements.  The
Contractor may incur reasonable expenses in the name of the Company provided
that such expenses relate solely to the carrying out of the Services.  The
Contractor will immediately forward all invoices for expenses incurred on
behalf of and in the name of the Company and the Company agrees to pay said
invoices directly on a timely basis.  

2.2                   Regulatory Compliance. 
The Contractor agrees to comply with all applicable securities legislation and
regulatory policies in relation to providing the Services, including but not
limited to United States securities laws (in particular, Regulation FD) and the
policies of the United States Securities and Exchange Commission. 

2.3                   Prohibition Against Insider Trading.  The Contractor
hereby acknowledges that the Contractor is aware, and further agrees 
that the Contractor
will advise those of its directors, officers, employees and agents who may have
access to Confidential Information, that United States securities laws prohibit
any person who has material, non-public information about a company from  purchasing or selling securities of such a company or
from communicating such information to any other person under circumstances in
which it is reasonably foreseeable that such person is likely to purchase or
sell such securities. 

 

 

 

	

  3

  

 

Article III

COMPANY'S AGREEMENTS

 

3.1                                                                                                    
Compensation. 
The Contractor shall receive payment of US $500 per month, payable on the last day of
every month, as compensation for providing the Services pursuant to the terms
of this Agreement.  The Contractor shall be paid the full $500 for the month of
March 2013, on March 31, 2013.

3.2                   Information.  Subject to
the terms of this Agreement, including without limitation Article V hereof, and
provided that the Contractor agrees that it will not disclose any material
non-public information to any person or entity, the Company shall make
available to the Contractor such information and data and shall permit the
Contractor to have access to such documents as are reasonably necessary to
enable it to perform the Services under this Agreement.  The Company also
agrees that it will act reasonably and promptly in reviewing materials
submitted to it from time to time by the Contractor and inform the Contractor
of any material inaccuracies or omissions in such materials.

Article IV

DURATION, TERMINATION AND DEFAULT

4.1                   Effective Date.  This
Agreement shall become effective as of March
1, 2013 (the “Effective Date”), and shall continue for a
period of 12  months thereafter (the “Term”) or until earlier
terminated pursuant to the terms of this Agreement.

4.2                   Termination.  Without prejudicing any other rights that
the Company may have hereunder or at law or in equity, the Company may 
terminate this Agreement immediately upon delivery of written notice to the
Contractor if:

(a)   
the Contractor breaches
section 2 of this Agreement;

(b)  
the Contractor breaches
any other material term of this Agreement and such breach is not cured to the
reasonable satisfaction of the Company within thirty (30) days after written
notice describing the breach in reasonable detail is delivered to the
Contractor;

(c)   
the Company acting
reasonably determines that the Contractor has acted, is acting or is likely to
act in a manner detrimental to the Company or has violated or is likely to
violate the confidentiality of any information as provided for in this
Agreement;

(d)  
the Contractor is
unable or unwilling to perform the Services under this Agreement, or

(e)   
the Contractor commits
fraud, serious neglect or misconduct in the discharge of the Services.

4.3                   Termination with Notice. 
Either party may terminate this agreement by providing the other party with 30
days written notice.  

 

 

 

	

  4

  

 

4.4                   Duties
Upon Termination.  Upon termination of this Agreement for any reason, the
Contractor shall upon receipt of all sums due and owing, promptly deliver the
following in accordance with the directions of the Company:

(a)               
a final accounting, reflecting the
balance of expenses incurred on behalf of the Company as of the date of
termination; and

(b)  
all documents pertaining to the
Company or this Agreement, including but not limited to, all books of account,
correspondence and contracts, provided that the Contractor shall be entitled
thereafter to inspect, examine and copy all of the documents which it delivers
in accordance with this provision at all reasonable times upon three (3) days’
notice to the Company.

4.5                   Compensation of Contractor on
Termination.  Upon termination of this Agreement by the Company for cause,
the Contractor shall be entitled to receive as its full and sole compensation
in discharge of obligations of the Company to the Contractor under this
Agreement all sums due and payable under this Agreement to the date of
termination and the Contractor shall have no right to receive any further
payments; provided, however, that the Company shall have the right to offset
against any payment owing to the Contractor under this Agreement any damages,
liabilities, costs or expenses suffered by the Company by reason of the fraud,
negligence or wilful act of the Contractor, to the extent such right has not
been waived by the Company.  Upon termination of this Agreement by the Company
without cause, the Contractor shall be entitled to a severance payment
equivalent to three months of the cash compensation fee specified in section
3.1.  Any options or shares unvested at the time of termination shall be
cancelled and returned to treasury.  

Article V

CONFIDENTIALITY AND NON-COMPETITION

5.1                   Maintenance of Confidential
Information.  The Contractor acknowledges
that in the course of its appointment hereunder the Contractor will, either
directly or indirectly, have access to and be entrusted with information
(whether oral, written or by inspection) relating to the Company or its respective
affiliates, associates or customers (the “Confidential Information”).  For the
purposes of this Agreement, “Confidential Information” includes, without
limitation, any and all Developments (as defined herein), trade secrets,
inventions, innovations, techniques, processes, formulas, drawings, designs,
products, systems, creations, improvements, documentation, data,
specifications, technical reports, customer lists, supplier lists, distributor
lists, distribution channels and methods, retailer lists, reseller lists,
employee information, financial information, sales or marketing plans,
competitive analysis reports and any other thing or information whatsoever,
whether copyrightable or uncopyrightable or patentable or unpatentable.  The
Contractor acknowledges that the Confidential Information constitutes a
proprietary right, which the Company is entitled to protect.  Accordingly the
Contractor covenants and agrees that during the Term and thereafter until such
time as all the Confidential Information becomes publicly known and made
generally available through no action or inaction of the Contractor, the
Contractor will keep in strict confidence the Confidential Information and
shall not, without prior written consent of the Company in each instance, disclose,
use or otherwise disseminate the Confidential Information, directly or
indirectly, to any third party.

5.2                   Exceptions. The general prohibition contained in Section 5.1
against the unauthorized disclosure, use or dissemination of the  Confidential Information shall not apply in
respect of any Confidential Information that:  

 

 

 

	

  5

  

 

(a)   
is available
to the public generally in the form disclosed;

(b)  
becomes part
of the public domain through no fault of the Contractor;

(c)   
is already
in the lawful possession of the Contractor at the time of receipt of the
Confidential Information; or

(d)  
is compelled
by applicable law to be disclosed, provided that the Contractor gives the
Company prompt written notice of such requirement prior to such disclosure and
provides assistance in obtaining an order protecting the Confidential
Information from public disclosure.

5.3                   Developments.  Any information, data, work product or any other
thing or documentation whatsoever which the Contractor, either by itself or in
conjunction with any third party, conceives, makes, develops, acquires or
acquires knowledge of during the Contractor’s appointment with the Company or
which the Contractor, either by itself or in conjunction with any third party,
shall conceive, make, develop, acquire or acquire knowledge of (collectively
the “Developments”) during the Term or at any time thereafter during which the
Contractor is engaged by the Company that is related to the business of mining
property acquisition and exploration shall automatically form part of the Confidential
Information and shall become and remain the sole and exclusive property of the
Company.  Accordingly, the Contractor does hereby irrevocably, exclusively and
absolutely assign, transfer and convey to the Company in perpetuity all
worldwide right, title and interest in and to any and all Developments and
other rights of whatsoever nature and kind in or arising from or pertaining to
all such Developments created or produced by the Contractor during the course
of performing this Agreement, including, without limitation, the right to
effect any registration in the world to protect the foregoing rights.  The
Company shall have the sole, absolute and unlimited right throughout the world,
therefore, to protect the Developments by patent, copyright, industrial design,
trademark or otherwise and to make, have made, use, reconstruct, repair,
modify, reproduce, publish, distribute and sell the Developments, in whole or
in part, or combine the Developments with any other matter, or not use the
Developments at all, as the Company sees fit.

5.4                   Protection of Developments. 
The Contractor does hereby agree that, both
before and after the termination of this Agreement, the Contractor shall
perform such further acts and execute and deliver such further instruments,
writings, documents and assurances (including, without limitation, specific
assignments and other documentation which may be required anywhere in the world
to register evidence of ownership of the rights assigned pursuant hereto) as
the Company shall reasonably require in order to give full effect to the true
intent and purpose of the assignment made under Section 0 hereof.  If the
Company is for any reason unable, after reasonable effort, to secure execution
by the Contractor on documents needed to effect any registration or to apply
for or prosecute any right or protection relating to the Developments, the
Contractor hereby designates and appoints the Company and its duly authorized
officers and agents as the Contractor’s agent and attorney to act for and in
the Contractor’s behalf and stead to execute and file any such document and do
all other lawfully permitted acts necessary or advisable in the opinion of the
Company to effect such registration or to apply for or prosecute such right or
protection, with the same legal force and effect as if executed by the
Contractor.

5.5                   Remedies.  The parties to this Agreement recognize that any
violation or threatened violation by the Contractor of any of the provisions
contained in this Article V will result in immediate and irreparable damage to
the Company  and that the Company
could not adequately be compensated for such damage by monetary award alone. 
Accordingly, the Contractor agrees that in the event of any such violation or
threatened violation, the Company 

 

 

	

  6

  

 

shall, in addition to
any other remedies available to the Company at law or in equity, be entitled as
a matter of right to apply to such relief by way of restraining order, temporary
or permanent injunction and to such other relief as any court of competent
jurisdiction may deem just and proper.

5.6                   Reasonable Restrictions. 
The Contractor agrees that all restrictions
in this Article V are reasonable and valid, and all defenses  to the strict enforcement thereof by the Company
are hereby waived by the Contractor.

Article VI

DEVOTION TO CONTRACT

6.1                   Devotion to Contract. 
During the term of this Agreement, the Contractor shall devote sufficient time,
attention, and ability to the business of the Company, and to any associated
company, as is reasonably necessary for the proper performance of the Services
pursuant to this Agreement.  Nothing contained herein shall be deemed to
require the Contractor to devote its exclusive time, attention and ability to
the business of the Company.  During the term of this Agreement, the Contractor
shall, and shall cause each of its agents assigned to performance of the
Services on behalf of the Contractor, to:

(a)   
at all times perform the Services
faithfully, diligently, to the best of its abilities and in the best interests
of the Company;

(b)  
devote such of its time, labour
and attention to the business of the Company as is necessary for the proper
performance of the Services hereunder; and

(c)   
refrain from acting in any manner
contrary to the best interests of the Company or contrary to the duties of the
Contractor as contemplated herein.

6.2                   Other Activities.  The
Contractor shall not be precluded from acting in a function similar to that
contemplated under this Agreement for any other person, firm or company.

Article VII

MISCELLANEOUS

7.1                   Notices.  All notices
required or allowed to be given under this Agreement shall be made either
personally by delivery to or by facsimile transmission to the address provided
on the first page of this Agreement, or to such other address as may be
designated from time to time by such party in writing.

7.2                                     
Independent Legal Advice.  The Contractor acknowledges that:

(a)   
the Contractor has been requested
to obtain his own independent legal advice on this Agreement prior to signing
this Agreement;

(b)  
the Contractor has been given
adequate time to obtain independent legal advice;

(c)   
by signing this Agreement, the
Contractor confirms that he fully understands this Agreement; and

 

 

 

	

  7

  

 

(d)  
by signing this Agreement without
first obtaining independent legal advice, the Contractor waives his right to
obtain independent legal advice.

7.3                   Change of Address.  Any
party may, from time to time, change its address for service hereunder by written
notice to the other party in the manner aforesaid.

7.4                   Entire Agreement.  As of
from the date hereof, any and all previous agreements, written or oral between
the parties hereto or on their behalf relating to the appointment of the
Contractor by the Company are null and void.  The parties hereto agree that
they have expressed herein their entire understanding and agreement concerning
the subject matter of this Agreement and it is expressly agreed that no implied
covenant, condition, term or reservation or prior representation or warranty
shall be read into this Agreement relating to or concerning the subject matter
hereof or any matter or operation provided for herein.

7.5                   Further Assurances.  Each
party hereto will promptly and duly execute and deliver to the other party such
further documents and assurances and take such further action as such other
party may from time to time reasonably request in order to more effectively
carry out the intent and purpose of this Agreement and to establish and protect
the rights and remedies created or intended to be created hereby.

7.6                   Waiver.  No provision
hereof shall be deemed waived and no breach excused, unless such waiver or
consent excusing the breach is made in writing and signed by the party to be
charged with such waiver or consent.  A waiver by a party of any provision of
this Agreement shall not be construed as a waiver of a further breach of the
same provision.

7.7                   Amendments in Writing. 
No amendment, modification or rescission of this Agreement shall be effective
unless set forth in writing and signed by the parties hereto.

7.8                   Assignment.  Except as herein expressly provided, the
respective rights and obligations of the Contractor and the Company under 
this Agreement shall not be assignable by either party without the written
consent of the other party and shall, subject to the foregoing, enure to the
benefit of and be binding upon the Contractor and the Company and their
permitted successors or assigns.  Nothing herein expressed or implied is
intended to confer on any person other than the parties hereto any rights,
remedies, obligations or liabilities under or by reason of this Agreement.

7.9                   Severability.  In the
event that any provision contained in this Agreement shall be declared invalid,
illegal or unenforceable by a court or other lawful authority of competent
jurisdiction, such provision shall be deemed not to affect or impair the
validity or enforceability of any other provision of this Agreement, which
shall continue to have full force and effect.

7.10                 Headings.  The headings in
this Agreement are inserted for convenience of reference only and shall not
affect the construction or interpretation of this Agreement.

7.11                 Number and Gender. 
Wherever the singular or masculine or neuter is used in this Agreement, the
same shall be construed as meaning the plural or feminine or a body politic or
corporate and vice versa where the context so requires.

7.12                 Time.  Time shall be of
the essence of this Agreement.
In the event that any day on or before which any action is required to be taken
hereunder is not a business day, then such action shall be required to be taken
at or before the requisite time on the next succeeding day that 

 

 

	

  8

  

 

is a business day.  For the purposes of this Agreement,
“business day” means a day which is not Saturday or Sunday or a statutory
holiday in Reno, Nevada, U.S.A.

7.13                 Enurement.  This Agreement
is intended to bind and enure to the benefit of the Company, its successors and
assigns, and the Contractor and the personal legal representatives of the
Contractor.

7.14                 Counterparts. 
This Agreement may  be executed in several counterparts, each
of which will be deemed to be an original and all of which will together
constitute one and the same instrument.

7.15                 Currency. 
Unless otherwise provided, all dollar amounts referred to in this
Agreement are in lawful money of the United States of America.

7.16                 Electronic Means. 
Delivery of an executed copy of this Agreement by electronic facsimile
transmission or other means of electronic  communication capable of producing a
printed copy will be deemed to be execution and delivery of this Agreement as
of the effective date of this Agreement.

7.17                 Proper Law. 
This Agreement will be governed by and construed in accordance with the law of the
State of Nevada.  The parties hereby attorn to the jurisdiction of the Courts
in the State of Nevada.

                         

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

NORSTA ENERGY INC.

Per: /s/ Glen Landry                                        

Name: Glen Landry

Position: President and CEO

Date: March 12,
2013

 

 

/s/ Dallas Kerkenezov                            

Dallas Kerkenezov

Date: March 12, 2013exhibit4a.htm

Exhibit 4(a)

March 18, 2013

 

 

Company Order and Officers’ Certificate

3.20% Senior Notes, Series J, due 2023

The Bank of New York Mellon Trust Company, N.A., as Trustee

2 North LaSalle Street

Chicago, Illinois 60602

Ladies and Gentlemen:

Pursuant to Article Two of the Indenture, dated as of October 1, 1998 (as it may be amended or supplemented, the “Indenture”), from Indiana Michigan Power Company (the “Company”) to The Bank of New York Mellon Trust Company, N.A., as successor to The Bank of New York, as trustee (the “Trustee”), and the Board Resolutions dated January 26, 2012, copies of which certified by the Secretary or an Assistant Secretary of the Company are being delivered herewith under Section 2.01 of the Indenture, and unless otherwise provided in a subsequent Company Order pursuant to Section 2.04 of the Indenture,

	
1.

	
The Company’s 3.20% Senior Notes, Series J, due 2023 (the “Notes”) are hereby established.  The Notes shall be in substantially the form attached hereto as Exhibit 1.

	
2.

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

	
 

	
(i)             The aggregate principal amount of Notes which may be authenticated and delivered under the Indenture shall be limited to $250,000,000, except as contemplated in Section 2.01 of the Indenture;

	
 

	
(ii)            The date on which the principal of the Notes shall be payable shall be March 15, 2023;

(iii)           Interest shall accrue from the date of authentication of the Notes; the Interest Payment Dates on which such interest will be payable shall be March 15 and September 15, and the Regular Record Date for the determination of holders to whom interest is payable on any such Interest Payment Date shall be the March 1 or September 1, respectively; provided that the first Interest Payment Date shall be September 15, 2013 and interest payable on the Stated Maturity Date or any Redemption Date shall be paid to the Person to whom principal shall be paid;

(iv)           The interest rate at which the Notes shall bear interest shall be 3.20% per annum;

  

1

  

(v)           The Notes may be redeemed by the Company at its option, in whole at any time or in part from time to time, upon not less than thirty but not more than sixty days’ prior notice given by mail to the registered owners of the Notes.   At any time prior to December 15, 2022, the Company may redeem the Notes either as a whole or in part at a redemption price equal to the greater of (1) 100% of the principal amount of the Notes being redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes being redeemed (excluding the portion of any such interest accrued to the date of redemption) discounted (for purposes of determining present value) to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 20 basis points, plus, in each case, accrued interest thereon to the date of redemption.

 

 

At any time on or after December 15, 2022, the Company may redeem the Notes in whole or in part at 100% of the principal amount of the Notes being redeemed, plus accrued interest thereon to the date of redemption.

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

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

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

“Reference Treasury Dealer” means each of Credit Suisse Securities (USA) LLC, UBS Securities LLC, and a Primary Treasury Dealer (defined herein) selected by KeyBanc Capital Markets Inc., and their respective successors; provided, however, that if any of the foregoing shall cease to be a primary U.S. government securities dealer in the United States (a “Primary Treasury Dealer”), the Company will substitute therefor another Primary Treasury Dealer reasonably acceptable to the Trustee.

“Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing 

 

  

2

  

to the Trustee by such Reference Treasury Dealer at or before 3:30 p.m., New York City time, on the third Business Day preceding such redemption date.

“Treasury Rate” means:

 

 

	
·  

	
the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the remaining life (as defined above), yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined and the Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month); or

 

	
·  

	
if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date.

 

	 	
(vi)

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

 

	
  

	
(vii)

	
the title of the Notes shall be “3.20% Senior Notes, Series J, due 2023”;

	
  

	
(viii)

	
the form of the Notes shall be as set forth in Paragraph 1, above;

	
  

	
(ix)

	
not applicable;

	
  

	
(x)

	
the Notes may be subject to a Periodic Offering;

	
  

	
(xi)

	
not applicable;

	
  

	
(xii)

	
not applicable;

  

3

  

	
  

	
(xiii)

	
not applicable;

	
  

	
(xiv)

	
the Notes shall be issuable in denominations of $1,000 and any integral multiple thereof;

	
  

	
(xv)

	
not applicable;

	
  

	
(xvi)

	
the Notes shall not be issued as Discount Securities;

 

	 	
(xvii) 

	
not applicable;

 

	
  

	
(xviii)

	
not applicable; and

(xix)     Limitations on Liens:

So long as any of the Notes are outstanding, the Company will not create or suffer to be created or to exist any mortgage, pledge, security interest, or other lien (collectively “Liens”) on any of the Company’s utility properties or tangible assets now owned or hereafter acquired to secure any indebtedness for borrowed money (“Secured Debt”), without providing that such Notes will be similarly secured.  This restriction does not apply to the Company’s subsidiaries, nor will it prevent any of them from creating or permitting to exist Liens on their property or assets to secure any Secured Debt.  In addition, this restriction does not prevent the creation or existence of:

	
·  

	
Liens on property existing at the time of acquisition or construction of such property (or created within one year after completion of such acquisition or construction), whether by purchase, merger, construction or otherwise, or to secure the payment of all or any part of the purchase price or construction cost thereof, including the extension of any Liens to repairs, renewals, replacements substitutions, betterments, additions, extensions and improvements then or thereafter made on the property subject thereto;

	
·  

	
Financing of the Company’s accounts receivable for electric service;

	
·  

	
Any extensions, renewals or replacements (or successive extensions, renewals or replacements), in whole or in part, of liens permitted by the foregoing clauses; and

	
·  

	
The pledge of any bonds or other securities at any time issued under any of the Secured Debt permitted by the above clauses.

In addition to the permitted issuances above, Secured Debt not otherwise so permitted may be issued in an amount that does not exceed 15% of Net Tangible Assets as defined below.

  

4

  

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

This restriction also will not apply to or prevent the creation or existence of leases made, or existing on property acquired, in the ordinary course of business.

	
3.

	
You are hereby requested to authenticate $250,000,000 aggregate principal amount of 3.20% Senior Notes, Series J, due 2023, executed by the Company and delivered to you concurrently with this Company Order and Officers’ Certificate, in the manner provided by the Indenture.

	
4.

	
You are hereby requested to hold the Notes as custodian for DTC in accordance with the Blanket Issuer Letter of Representations dated November 10, 2004, from the Company to DTC.

	
5.

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

	
6.

	
The undersigned Renee V. Hawkins and Thomas G. Berkemeyer, the Assistant Treasurer and Assistant Secretary, respectively, of the Company do hereby certify that:

	
  

	
(i)

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

	
  

	
(ii)

	
We have read the Board Resolutions of the Company and the Opinion of Counsel referred to above;

	
  

	
(iii)

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

	
  

	
(iv)

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

	
  

	
(v)

	
On the basis of the foregoing, we are of the opinion that all conditions precedent provided for in the Indenture relating to the action proposed to be taken by the Trustee as requested herein have been complied with.

  

5

  

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

Very truly yours,

INDIANA MICHIGAN POWER COMPANY

By:       /s/ Renee V. Hawkins                                           

Renee V. Hawkins

Assistant Treasurer

And:     /s/ Thomas G. Berkemeyer

Thomas G. Berkemeyer

Assistant Secretary

Acknowledged by Trustee:

By:            /s/ Richard Tarnas

Authorized Signatory

  

6

  

Exhibit 1

Unless this certificate is presented by an authorized representative of The Depository Trust Company (55 Water Street, New York, New York) to the issuer or its agent for registration of transfer, exchange or payment, and any certificate to be issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of The Depository Trust Company and any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.  Except as otherwise provided in Section 2.11 of the Indenture, this Security may be transferred, in whole but not in part, only to another nominee of the Depository or to a successor Depository or to a nominee of such successor Depository.

No.   R1

INDIANA MICHIGAN POWER COMPANY

3.20% Senior Notes, Series J, due 2023

CUSIP:  454889 AP1                                                                                                                                                                              Original Issue Date:  March 18, 2013

Stated Maturity:  March 15, 2023                                                                                                                                                             Interest Rate:        3.20%

Principal Amount:  $250,000,000

Redeemable:                      Yes  þ                                No   ̈

In Whole:                           Yes  þ                                No   ̈

In Part:                               Yes  þ                                No   ̈

INDIANA MICHIGAN POWER COMPANY, a corporation duly organized and existing under the laws of the State of Indiana (herein referred to as the “Company”, which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO. or registered assigns, the Principal Amount specified above on the Stated Maturity specified above, and to pay interest on said Principal Amount from the Original Issue Date specified above or from the most recent interest payment date (each such date, an “Interest Payment Date”) to which interest has been paid or duly provided for, semi-annually in arrears on March 15 and September 15 in each year, commencing on September 15, 2013, at the Interest Rate per annum specified above, until the Principal Amount shall have been paid or duly provided for.  Interest shall be computed on the basis of a 360-day year of twelve 30-day months.

The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date, as provided in the Indenture, as hereinafter defined, shall be paid to the Person in whose name this Note (or one or more Predecessor Securities) shall have been registered at the close of business on the Regular Record Date with respect to such Interest Payment Date, which shall be the March 1 or September 1 (whether or not a Business Day) prior to such Interest Payment Date, provided that interest payable on the Stated Maturity or any redemption date shall be paid to the Person to whom

  

E-1

  

principal is paid.  Any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and shall be paid as provided in said Indenture.

If any Interest Payment Date, any redemption date or Stated Maturity is not a Business Day, then payment of the amounts due on this Note on such date will be made on the next succeeding Business Day, and no interest shall accrue on such amounts for the period from and after such Interest Payment Date, redemption date or Stated Maturity, as the case may be, with the same force and effect as if made on such date.  The principal of (and premium, if any) and the interest on this Note shall be payable at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, the City of New York, New York, in any coin or currency of the United States of America which at the time of payment is legal tender for payment of public and private debts; provided, however, that payment of interest (other than interest payable on the Stated Maturity or any redemption date) may be made at the option of the Company by check mailed to the registered holder at such address as shall appear in the Security Register.

This Note is one of a duly authorized series of Notes of the Company (herein sometimes referred to as the “Notes”), specified in the Indenture, all issued or to be issued in one or more series under and pursuant to an Indenture dated as of October 1, 1998 duly executed and delivered between the Company and The Bank of New York Mellon Trust Company, N.A., a national banking association formed under the laws of the United States, as successor to The Bank of New York, as Trustee (herein referred to as the “Trustee”) (such Indenture, as originally executed and delivered and as thereafter supplemented and amended being hereinafter referred to as the “Indenture”), to which Indenture and all indentures supplemental thereto or Company Orders reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the holders of the Notes.  By the terms of the Indenture, the Notes are issuable in series which may vary as to amount, date of maturity, rate of interest and in other respects as in the Indenture provided.  This Note is one of the series of Notes designated on the face hereof.

This Note may be redeemed by the Company at its option, in whole at any time or in part from time to time, upon not less than thirty but not more than sixty days’ prior notice given by mail to the registered owners of the Notes.   At any time prior to December 15, 2022, the Company may redeem this Note either as a whole or in part at a redemption price equal to the greater of (1) 100% of the principal amount of the Notes being redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes being redeemed (excluding the portion of any such interest accrued to the date of redemption) discounted (for purposes of determining present value) to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 20 basis points, plus, in each case, accrued interest thereon to the date of redemption.

 

At any time on or after December 15, 2022, the Company may redeem this Note in whole or in part at 100% of the principal amount of the Notes being redeemed, plus accrued interest thereon to the date of redemption.

  

E-2

  

 

“Treasury Rate” means:

 

	
·  

	
the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the remaining life (as defined below), yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined and the Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month); or

	
·  

	
if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date.

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

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

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

“Reference Treasury Dealer” means each of Credit Suisse Securities (USA) LLC, UBS Securities LLC, and a Primary Treasury Dealer (defined herein) selected by KeyBanc Capital Markets Inc., and their respective successors; provided, however, that if any of the foregoing shall cease to be a primary U.S. government securities dealer in the United States (a “Primary Treasury Dealer”), the Company will substitute therefor another Primary Treasury Dealer reasonably acceptable to the Trustee.

“Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at or before 3:30 p.m.,

  

E-3

  

 New York City time, on the third Business Day preceding such redemption date.

The Company shall not be required to (i) issue, exchange or register the transfer of any Notes during a period beginning at the opening of business 15 days before the day of the mailing of a notice of redemption of less than all the outstanding Notes of the same series and ending at the close of business on the day of such mailing, nor (ii) register the transfer of or exchange of any Notes of any series or portions thereof called for redemption.  This Global Note is exchangeable for Notes in definitive registered form only under certain limited circumstances set forth in the Indenture.

In the event of redemption of this Note in part only, a new Note or Notes of this series, of like tenor, for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the surrender of this Note.

In case an Event of Default, as defined in the Indenture, shall have occurred and be continuing, the principal of all of the Notes may be declared, and upon such declaration shall become, due and payable, in the manner, with the effect and subject to the conditions provided in the Indenture.

The Indenture contains provisions for defeasance at any time of the entire indebtedness of this Note upon compliance by the Company with certain conditions set forth therein.

As described in the Company Order and Officers’ Certificate, so long as this Note is outstanding, the Company is subject to a limitation on Liens as described therein.

The Indenture contains provisions permitting the Company and the Trustee, with the consent of the Holders of not less than a majority in aggregate principal amount of the Notes of each series affected at the time outstanding, as defined in the Indenture, to execute supplemental indentures for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of any supplemental indenture or of modifying in any manner the rights of the Holders of the Notes; provided, however, that no such supplemental indenture shall (i) extend the fixed maturity of any Notes of any series, or reduce the principal amount thereof, or reduce the rate or extend the time of payment of interest thereon, or reduce any premium payable upon the redemption thereof, or reduce the amount of the principal of a Discount Security that would be due and payable upon a declaration of acceleration of the maturity thereof pursuant to the Indenture, without the consent of the holder of each Note then outstanding and affected; (ii) reduce the aforesaid percentage of Notes, the holders of which are required to consent to any such supplemental indenture, or reduce the percentage of Notes, the holders of which are required to waive any default and its consequences, without the consent of the holder of each Note then outstanding and affected thereby; or (iii) modify any provision of Section 6.01(c) of the Indenture (except to increase the percentage of principal amount of securities required to rescind and annul any declaration of amounts due and payable under the Notes), without the consent of the holder of each Note then outstanding and affected thereby.  The Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount of the Notes of all series at the time outstanding affected thereby, on behalf of the Holders of the Notes of such series, to waive any past default in the performance of any of the covenants contained in the Indenture, or established pursuant to the Indenture with respect to such series, and its consequences, except a default in the

  

E-4

  

 payment of the principal of or premium, if any, or interest on any of the Notes of such series.  Any such consent or waiver by the registered Holder of this Note (unless revoked as pro­vided in the Indenture) shall be conclusive and binding upon such Holder and upon all future Holders and owners of this Note and of any Note issued in exchange herefor or in place hereof (whether by registration of transfer or otherwise), irrespective of whether or not any notation of such consent or waiver is made upon this Note.

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and premium, if any, and interest on this Note at the time and place and at the rate and in the money herein prescribed.

As provided in the Indenture and subject to certain limitations therein set forth, this Note is transferable by the registered holder hereof on the Security Register of the Company, upon surrender of this Note for registration of transfer at the office or agency of the Company as may be designated by the Company accompanied by a written instrument or instruments of transfer in form satisfactory to the Company or the Trustee duly executed by the registered Holder hereof or his or her attorney duly authorized in writing, and thereupon one or more new Notes of authorized denominations and for the same aggregate principal amount and series will be issued to the designated transferee or transferees.  No service charge will be made for any such trans­fer, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in relation thereto.

Prior to due presentment for registration of transfer of this Note, the Company, the Trustee, any paying agent and any Security Registrar may deem and treat the registered Holder hereof as the absolute owner hereof (whether or not this Note shall be overdue and notwithstanding any notice of ownership or writing hereon made by anyone other than the Security Registrar) for the purpose of receiving payment of or on account of the principal hereof and premium, if any, and interest due hereon and for all other purposes, and neither the Company nor the Trustee nor any paying agent nor any Security Registrar shall be affected by any notice to the contrary.

No recourse shall be had for the payment of the principal of or the interest on this Note, or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture, against any incorporator, stockholder, officer or director, past, present or future, as such, of the Company or of any predecessor or successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issuance hereof, expressly waived and released.

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

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

  

E-5

  

This Note shall not be entitled to any benefit under the Indenture hereinafter referred to, be valid or become obligatory for any purpose until the Certificate of Authentication hereon shall have been signed by or on behalf of the Trustee.

  

E-6

  

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

 

INDIANA MICHIGAN POWER COMPANY

By:___________________________

Renee V. Hawkins

Assistant Treasurer

Attest:

By:___________________________

Thomas G. Berkemeyer

Assistant Secretary

  

E-7

  

CERTIFICATE OF AUTHENTICATION

 

This is one of the Notes of the series of Notes designated in accordance with, and referred to in, the within-mentioned Indenture.

Dated:  March 18, 2013

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

By:___________________________

   Authorized Signatory

  

E-8

  

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

(PLEASE INSERT SOCIAL SECURITY OR OTHER

   IDENTIFYING NUMBER OF ASSIGNEE)

_______________________________________

________________________________________________________________

________________________________________________________________

(PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF

________________________________________________________________

ASSIGNEE) the within Note and all rights thereunder, hereby

________________________________________________________________

irrevocably constituting and appointing such person attorney to

________________________________________________________________

transfer such Note on the books of the Issuer, with full

________________________________________________________________

power of substitution in the premises.

Dated:________________________                                                                           _________________________

	
NOTICE:

	
The signature to this assignment must correspond with the name as written upon the face of the within Note in every particular, without alteration or enlargement or any change whatever and NOTICE:  Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agents Medallion Program (“STAMP”), the Stock Exchange Medallion Program (“SEMP”) or the New York Stock Exchange, Inc. Medallion Signature Program (“MSP”).

  

E-9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00214-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00214-of-00352.parquet"}]]