Document:

Exhibit 4.1

 

[Conformed
Copy]

 

 

 

 

 

PACIFICORP,

An Oregon Corporation

 

TO

 

MORGAN GUARANTY TRUST COMPANY

OF NEW YORK,

A New York Corporation

 

Trustee

 

 

Mortgage and Deed of Trust

Dated as of January 9, 1989

 

 

 

 

 

This Instrument Grants a Security Interest

By a Transmitting Utility

 

This Instrument Contains After-Acquired

Property Provisions

 

 

 

 

 

     

    

    

 

PACIFICORP,

 

An Oregon Corporation

 

TO

 

MORGAN GUARANTY TRUST COMPANY OF NEW YORK

 

A New York Corporation, Trustee

 

Mortgage and Deed of Trust

 

 

 

	TABLE
    OF CONTENTS*
	 	PAGE
	 
	Parties	1
	Recitals	1
	Granting clauses	1
	Agreement as
    to after-acquired property	3
	Properties excepted
    from Lien of Indenture	3
	Habendum	4
	Grant in Trust	5
	Defeasance clause	5
	Covenant clause	5

 

	ARTICLE I 

    Definitions
	Sec.	1.01	Explanatory statement	6
	 	 	Construction of accounting terms	6
	 	 	Evidence of approval of signer	6
	 	 	Requests and applications to be accompanied by certificates and opinions	6
	Sec.	1.02	“Adjusted Net Earnings” defined in Section 1.07 hereof	6
	 	 	“Annual Interest Requirements”
    defined in Section 1.07 hereof	6

 

 

 

 

 

 

 

 

 

* The Table of Contents was not
a part of the Mortgage and Deed of Trust as executed.

     

    	 	ii	 

    

 

	 	 	 	PAGE
	 	 	“Authorized Executive Officer of the Company”	7
	 	 	“Authorized Financial Officer of the Company”	7
	 	 	“Authorized Purposes”	7
	 	 	“Board of Directors”	7
	 	 	“Class “A” Bonds”	7
	 	 	“Class “A” Mortgage”	7
	 	 	“Company”	7
	 	 	“Cost” defined in Section 1.04(III) hereof	7
	 	 	“Daily Newspaper”	7
	 	 	“Defaults” defined in Section 15.01 hereof	8
	 	 	“Engineer”	8
	 	 	“Engineer’s Certificate”	8
	 	 	“Excepted Encumbrances” defined in Section 1.06 hereof	9
	 	 	“Federal Bankruptcy Act”	9
	 	 	“Fuel Transportation Facilities”	9
	 	 	“Funded Bonds” defined in Section 1.05 hereof	9
	 	 	“Funded Cash” defined in Section 1.05 hereof	9
	 	 	“Funded Property” defined in Section 1.05 hereof	9
	 	 	“independent”	9
	 	 	“Independent Engineer’s Certificate”	9
	 	 	“Investment Securities”	9
	 	 	“Lien hereof” and “Lien of this Indenture”	10
	 	 	“Mortgage” or “this Indenture”	10
	Sec.	1.03	“Mortgaged and Pledged Property”	10
	 	 	“Net Earning Certificate” defined in Section 1.07
    hereof	10
	 	 	“Officers’ Certificate”	10
	 	 	“Opinion of Counsel”	11
	 	 	“Original Trustee”	11
	 	 	“Outstanding”	11
	 	 	“Outstanding” with respect to Class “A”
    Bonds	11
	 	 	“Outstanding” with respect to Qualified Lien Bonds defined
    in Section 1.06 hereof	11
	 	 	“Pacific Mortgage”	11
	 	 	“Proceeds of Released Property”	11
	 	 	“Property Additions” defined in Section 1.04 hereof	12
	 	 	“Qualified Lien” defined in Section 1.06 hereof	12
	 	 	“Qualified Lien Bonds” defined in Section 1.06 hereof	12
	 	 	“Resolution”	12
	 	 	“Responsible Officers”	12
	 	 	“Retired Bonds”	12

 

     

    	 	iii	 

    

 

	 	 	 	PAGE
	 	 	“Space Satellites”	12
	 	 	“Trust Indenture Act”	12
	 	 	“Trustee”	13
	 	 	“underwriter” defined in Section 19.12 hereof	13
	 	 	“Utah Mortgage”	13
	 	 	“Wyodak Facility”	13
	Sec.	1.04	(I) “Property Additions”	13
	 	 	(II) Provisions for netting Property Additions	15
	 	 	(III) “Cost”	16
	Sec.	1.05	“Funded Property”	17
	 	 	“Funded Bonds”	19
	 	 	“Funded Cash”	19
	Sec.	1.06	“Excepted Encumbrances”	20
	 	 	“Qualified Lien”	21
	 	 	“Qualified Lien Bonds”	21
	 	 	“Outstanding”	21
	Sec.	1.07	“Net Earning Certificate”	22
	 	 	Construction of phrases relating to property retirement	26
	 	 	Interest payments in foreign coin or currency	26
	 	 	 	 
	 	 	ARTICLE II

    Forms, Execution, Registration, Exchange and Other 

    General Provisions as to Issuance of Bonds	 
	Sec.	2.01	Aggregate principal amount of bonds unlimited	26
	Sec.	2.02	Company free to determine price and other terms of issuance of bonds	27
	Sec.	2.03	Bonds issuable in series; establishment of terms, conditions and provisions
    of each such series	27
	Sec.	2.04	One or more series may be expressed in one or more foreign languages—English
    text shall prevail	30
	Sec.	2.05	Kinds and denominations of bonds	30
	Sec.	2.06	Date of and interest on fully registered bonds	30
	 	 	Dates and designation of coupon bonds	30
	Sec.	2.07	Legends on bonds	31
	Sec.	2.08	Surrender of bonds upon exchange	31
	 	 	Authentication and issuance of new bonds	31
	 	 	Charges for exchanges and transfers of bonds	31
	Sec.	2.09	Registration and transfer books	32

 

     

    	 	iv	 

    

 

	 	 	 	PAGE
	Sec.	2.10	Execution of bonds	32
	 	 	Matured coupons to be detached before authentication of bonds	32
	Sec.	2.11	Temporary bonds	33
	Sec.	2.12	Replacement of stolen, lost, destroyed or mutilated bonds	33
	 	 	Indemnity and charges	33
	Sec.	2.13	Trustee’s certificate on bonds	34
	 	 	 	 
	 	 	ARTICLE III

    First Series of Bonds	 
	Sec.	3.01	Bonds of the First Series	34
	 	 	(I) Redemption of Bonds of the First Series	34
	 	 	(II) Exchange of Bonds of the First Series	34
	 	 	(III) Delivery of Bonds of the First Series	34
	 	 	 	 
	 	 	ARTICLE IV

    Issuance of Bonds Upon Deposit of Class “A” 

    Bonds With Trustee	 
	Sec.	4.01	(I) Additional bonds issuable based upon deposit of Class “A” Bonds	35
	 	 	(II) No Net Earning Certificate required in certain cases	36
	 	 	 	 
	 	 	ARTICLE V

    Issuance of Bonds on the Basis 

    of Property Additions	 
	Sec.	5.01	Additional bonds issuable on basis of Property Additions	37
	Sec.	5.02	No bonds issuable
    under Article V on basis of Funded Property	37
	Sec.	5.03	Bonds issuable
    under Article V to specified percentage of Cost or fair value of Property Additions after making certain deductions and
    additions	

        37

	Sec.	5.04	Qualified Liens
    on Property Additions deducted from principal amount of bonds otherwise issuable—exception	

    37
	 	 	Bonds issuable
    on Property Additions subject to Qualified Lien and Qualified Lien Bonds limited to specified percentage of all bonds including
    Qualified Lien Bonds	

        37

	Sec.	5.05	Net Earning requirements
    for issue on Property Additions	41
	Sec.	5.06	Bond application
    papers for issue on Property Additions	41
	 	 	Determination
    of Cost, fair value and fair market value	46

 

     

    	 	v	 

    

 

	 	 	ARTICLE VI

    Issuance of Bonds Upon Retirement of 

    Bonds Previously Outstanding Hereunder	 
	 	 	 	PAGE
	Sec.	6.01	Bond application papers for issues in refunding certain Retired Bonds	46
	 	 	Net Earning Certificate in certain cases	47
	Sec.	6.02	No bonds may be issued under Section 6.01 in certain cases	48
	 	 	 	 
	 	 	ARTICLE VII

    Issuance of Bonds Upon Deposit of Cash With Trustee	 
	Sec.	7.01	Bond application papers for issues against deposited cash	48
	Sec.	7.02	Withdrawal of cash deposited under Section 7.01	49
	Sec.	7.03	Company may direct application of cash deposit under Section 7.01
    to purchase, pay or redeem bonds	49
	 	 	 	 
	 	 	ARTICLE VIII

    Amendments to the Trust Indenture Act	 
	Sec.	8.01	Reservation of right to comply with or conform to the Trust Indenture
    Act	50
	 	 	 	 
	 	 	ARTICLE IX

    Particular Covenants of the Company	 
	Sec.	9.01	Possession	51
	 	 	Maintenance of Lien	51
	 	 	Right to mortgage	51
	Sec.	9.02	Payment of principal and interest	51
	 	 	Cancellation of paid coupons	51
	Sec.	9.03	(a) Appointment of qualified Trustee	51
	 	 	(b) Office or agency for presentation of bonds, coupons, notices, etc.	52
	 	 	     Results of failure to maintain such
    offices	52
	 	 	(c) Duty of paying agent other than Trustee	52
	 	 	(d) Duty of Company acting as paying agent	53
	 	 	(e) Delivery to Trustee of sums held by other paying agent	53
	 	 	(f) All sums to be held subject to Section 22.03	53
	Sec.	9.04	Payments of taxes, etc.	53

 

     

    	 	vi	 

    

 

	 	 	 	PAGE
	Sec.	9.05	(I) Insurance
    on property	54
	 	 	(II) Application
    of insurance proceeds	55
	 	 	(III) Use
    of money not applied to rebuilding or renewal within eighteen months 	56
	 	 	(IV) Deductible
    provision	56
	Sec.	9.06	(I) Maintenance
    of Mortgaged and Pledged Property	56
	 	 	(II) Permanent
    discontinuance of operation or reduction of capacity of any plants or property	57
	 	 	(III) Independent
    Engineer’s Certificate on maintenance of Mortgaged and Pledged Property	57
	 	 	(IV) Company
    objection in writing to findings of independent Engineer; arbitration	58
	 	 	(V) Grace
    period regarding compliance	59
	 	 	(VI) Company
    shall cure deficiency; independent Engineer or arbitrators shall report to Trustee	59
	 	 	(VII) Company
    deemed to have defaulted in covenants of this Section unless Trustee advised deficiency has been cured	59
	 	 	(VIII) Expenses	59
	 	 	(IX) Relief
    of Company from certain covenants by order or regulation of regulatory authority	59
	 	 	(X) Retirement
    from plant account of property no longer useful in business	60
	Sec.	9.07	Covenant
    as to dividends	60
	Sec.	9.08	Maintenance
    of corporate existence and franchises	60
	Sec.	9.09	Recording,
    filing, etc.	60
	 	 	Annual
    Opinion of Counsel	61
	 	 	Instruments
    of further assurance	61
	Sec.	9.10	(a) Company
    to furnish Trustee information as to names and addresses of bondholders	62
	 	 	(b) Preservation
    by Trustee of such information	62
	 	 	(c) Trustee
    shall make such information available or mail communications to bondholders in certain circumstances	62
	 	 	(d) Trustee
    and paying agent not accountable by reason of disclosing or mailing material pursuant to subdivision (c)	64
	Sec.	9.11	(1) Company
    agrees to file with Trustee copies of annual reports which the Company may be required to file with the Securities and Exchange
    Commission	64

 

 

     

    	 	vii	 

    

 

	 	 	 	PAGE
	 	 	(2) Company
    agrees to file with Trustee and Securities and Exchange Commission certain additional information with respect to compliance
    with certain conditions and covenants of Indenture	64
	 	 	(3) Company
    agrees to transmit to bondholders summaries of such information as may be required by Securities and Exchange Commission	65
	Sec.	9.12	Books
    of record and account	65
	 	 	Faithful
    performance of covenants, conditions, etc.	65
	Sec.	9.13	Company
    to advise Trustee promptly after any failure to pay principal of or interest on Qualified Lien Bonds or Class “A”
    Bonds	65
	 	 	Upon
    cancellation of Qualified Lien Company will	65
	 	 	(a) cause
    Qualified Lien Bonds to be cancelled or deposited hereunder	65
	 	 	(b) deposit
    hereunder all Funded Cash, etc., held thereunder	66
	 	 	Not
    permit the amount of Qualified Lien Bonds to be increased—exceptions	66
	 	 	Disposition
    of cash received on discharge of prior liens	67
	Sec.	9.14	Annual
    Certificate of No Default	68
	 	 	 	 
	 	 	ARTICLE X

    Concerning Bonds Secured by Lien Prior to 

    the Lien Hereof Deposited with Trustee	 
	Sec.	10.01	Requirements
    upon deposit of bonds secured by lien prior hereto	68
	Sec.	10.02	Disposition
    of principal and interest on bonds secured by lien prior hereto	69
	Sec.	10.03	Surrender
    of bonds secured by lien prior hereto	70
	 	 	Extension
    of maturity, etc., of bond secured by lien prior hereto	71
	Sec.	10.04	Trustee’s
    rights on Default hereunder as holder of bonds secured by lien prior hereto	71
	 	 	 	 
	 	 	ARTICLE XI

    Concerning Class “A” Bonds and 

    Additional Class “A” Mortgages	 
	Sec.	11.01	Trustee
    to notify trustees of Class “A” Mortgages of Default and payments to be made on held Class “A”
    Bonds	72

 

     

    	 	viii	 

    

 

	 	 	ARTICLE XI

    Concerning Class “A” Bonds and 

    Additional Class “A” Mortgages	 
	 	 	 	PAGE
	Sec.	11.02	Form of
    deposited Class “A” Bonds	72
	Sec.	11.03	Trustee
    to vote all Class “A” Bonds Outstanding with respect to any amendments or modification of Class “A”
    Mortgage	72
	Sec.	11.04	Limitation on issuance
    of Class “A” Bonds	73
	Sec.	11.05	Limitation
    on issuance of Class “A” Bonds under a Class “A” Mortgage	73
	Sec.	11.06	(I) Designation
    of Additional Class “A” Mortgages	73
	 	 	(II) Status
    of Additional Class “A” Mortgages and Additional Class “A” Bonds	75
	 	 	 	 
	 	 	ARTICLE XII

    Redemption or Purchase of Bonds	 
	Sec.	12.01	Which
    bonds redeemable	76
	Sec.	12.02	Redemption
    of a part only of bonds	76
	 	 	Notice
    of redemption	76
	 	 	Mailing
    notice	77
	Sec.	12.03	Bonds
    due on redemption date if price deposited and notice given	78
	Sec.	12.04	Redemption
    money held in trust until paid to holders on surrender of bonds	78
	 	 	When
    bonds cease to bear interest	78
	 	 	Partial
    redemption of registered bonds	78
	Sec.	12.05	Purchase
    of bonds with cash held by Trustee	78
	 	 	Company
    may designate series	79
	 	 	Solicitation
    of offers to sell	79
	Sec.	12.06	Bonds
    paid, purchased or redeemed hereunder to be cancelled	79
	 	 	Destruction
    of bonds and coupons	79
	 	 	 	 
	 	 	ARTICLE XIII

    Possession, Use and Release of Mortgaged 

    and Pledged Property	 
	Sec.	13.01	Company’s
    possession and enjoyment	80
	Sec.	13.02	What
    Company may do without release or consent by Trustee	80
	 	 	(1) Replacement
    of machinery, equipment, tools, etc.	80
	 	 	(2) Cancellation
    of rights of way	80
	 	 	(3) Surrender
    or assent to modification of franchises, etc.	80

 

     

    	 	ix	 

    

 

	 	 	 	PAGE
	Sec.	13.03	Release of property	81
	 	 	(1) Officers’
    Certificate	81
	 	 	(2) Engineer’s
    Certificate	81
	 	 	(3) Cash
    equal to amount by which Cost or fair value of property released exceeds the sum of:	 
	 	 	(a) Purchase
    money obligations received	82
	 	 	(b) Cost
    or fair value of Property Additions made basis of release	82
	 	 	(c) Principal
    amount of bonds which Company waives right to issue	83
	 	 	(d) Purchase
    money obligations delivered to holder of Qualified Lien	83
	 	 	(e) Principal
    amount of bonds delivered to Trustee	83
	 	 	(f) Taxes
    and expenses	83
	 	 	(4) Opinion
    of Counsel on Property Additions	84
	 	 	(5) Opinion
    of Counsel on purchase money mortgage, etc.	84
	 	 	(6) Opinion
    of Counsel if franchise to be released	85
	 	 	(7) Opinion
    of Counsel on conditions and covenants	85
	 	 	Assignment, filing and recordation of
    purchase money mortgages; Opinion of Counsel	85
	 	 	Conditions if release based on Property
    Additions, etc.	85
	 	 	When Property Additions made basis of
    release do not become Funded Property	86
	 	 	Disposition of consideration received
    upon release	86
	 	 	Substituted property to become subject
    to Lien	88
	Sec.	13.04	Release of property which is not Funded
    Property	88
	 	 	(1) Officers’
    Certificate	89
	 	 	(2) Engineer’s
    Certificate	89
	 	 	(3) Further
    Engineer’s Certificate	90
	 	 	(4) Opinion
    of Counsel	90
	Sec.	13.05	Release of real estate unimproved for
    Company’s business	90
	 	 	Any consideration received by Company
    to be deposited hereunder	91
	Sec.	13.06	Withdrawal or application of moneys received
    for releases, etc.	91
	 	 	Such moneys may be:	 
	 	 	(1) Withdrawn
    on basis of Property Additions	91
	 	 	(2) Withdrawn
    on basis of right to issue bonds	92
	 	 	(3) Applied
    to purchase bonds	92
	 	 	(4) Applied
    to redeem bonds	92

  

     

    	 	x	 

    

 

	 	 	 	PAGE
	 	 	Requirements
    for withdrawal of moneys	92
	 	 	When
    withdrawal does not represent Funded Property	94
	 	 	Release
    of purchase money mortgage obligations	95
	 	 	Principal
    and interest on purchase money mortgage obligations	95
	 	 	Disposition
    of bonds deposited under this Section	96
	Sec.	13.07	Release
    of property or subordination to interests taken by eminent domain or purchased by governmental body	96
	 	 	Application
    of proceeds	96
	Sec.	13.08	If
    Mortgaged and Pledged Property in hands of receiver or trustee, it may exercise powers conferred on Company	97
	 	 	Notwithstanding
    default, Trustee may release Mortgaged and Pledged Property	97
	 	 	Purchaser
    in good faith not put on inquiry	97
	Sec.	13.09	Alternative
    method of release of certain Mortgaged and Pledged Property	98
	Sec.	13.10	Quitclaim
    of property not subject to Lien	98
	 	 	 	 
	 	 	ARTICLE XIV

    Discharge of Class “A” Mortgage	 
	Sec.	14.01	Discharge
    of Class “A” Mortgage if no bonds are Outstanding thereunder (excluding Class “A” Bonds
    held by the Trustee)	99
	 	 	 	 
	 	 	ARTICLE XV

    Remedies of Trustee and Bondholders Upon Default	 
	Sec.	15.01	Definition
    of “Defaults”	99
	Sec.	15.02	Trustee
    to give bondholders and trustees under Class “A” Mortgages notice of defaults	101
	Sec.	15.03	Declaration
    of principal and accrued interest due upon Default	102
	 	 	Holders
    of specified percentage of bonds may annul declaration	102
	Sec.	15.04	Trustee
    may take possession and operate Mortgaged and Pledged Property on Default	103
	 	 	When
    Trustee shall surrender possession to Company	103
	Sec.	15.05	Power
    of Trustee to sell all the Mortgaged and Pledged Property	103
	Sec.	15.06	Judicial
    proceedings by Trustees	104
	 	 	Remedies
    cumulative	104
	 	 	Delay, etc.,
    not a waiver of rights	104
	 	 	Waiver
    of Default not to extend to subsequent Defaults	104

 

     

    	 	xi	 

    

 

	 	 	 	PAGE
	Sec.	15.07	Holders
    of specified percentage of bonds may direct judicial proceedings by Trustee	104
	 	 	Bonds
    owned by Company or affiliates not included in determining percentages for certain purposes	105
	Sec.	15.08	Appointment
    of receiver	105
	Sec.	15.09	All
    bonds to become due and payable upon sale of property	106
	Sec.	15.10	Purchase
    by bondholders at sale of property	106
	Sec.	15.11	Receipt
    of Trustee or officer making sale to be a discharge to purchaser	106
	 	 	Effect
    of sale on rights of Company	107
	Sec.	15.12	Disposition
    of proceeds of sale	107
	 	 	Order
    of application	107
	Sec.	15.13	Waiver
    by Company of advantage of any appraisement, valuation, stay, extension or redemption laws, and of rights to marshal assets	108
	Sec.	15.14	Payment
    of principal and interest to Trustee upon occurrence of certain defaults	109
	 	 	Proofs
    of claim	109
	 	 	Judgment
    may be taken by Trustee	110
	 	 	Lien
    of Indenture not to be affected by judgment or levy of execution by Trustee	110
	 	 	Application
    of moneys collected by Trustee	110
	Sec.	15.15	Possession
    of bonds unnecessary in action by Trustee	110
	 	 	Bondholders
    not necessary parties to action	111
	Sec.	15.16	Limitation
    upon right of bondholders to institute certain legal proceedings	111
	 	 	Right
    of bondholders to receive and enforce payment not impaired	112
	Sec.	15.17	Company
    may waive period of grace	112
	 	 	If
    enforcement proceedings abandoned, status quo ante restored	112
	 	 	 	 
	 	 	ARTICLE XVI

    Evidence of Rights of Bondholders 

    and Ownership of Bonds	 
	Sec.	16.01	Execution
    of instruments by bondholders	112
	 	 	Proof
    of execution	112
	 	 	(a) Acknowledgment	112
	 	 	(b) Certificate
    of trust company, bank, etc.	112
	 	 	Consent
    or vote binding on future holder of bond	113

 

     

    	 	xii	 

    

 

	 	 	 	PAGE
	Sec.	16.02	Evidence
    of ownership of temporary or coupon bonds	113
	 	 	Evidence
    of ownership of registered bonds	113
	 	 	Inspection
    of bonds	114
	 	 	 	 
	 	 	ARTICLE XVII

    Immunity of Incorporators, Subscribers to the 

    Capital Stock, Shareholders, Officers and Directors	 
	Sec.	17.01	Liability
    of officers, etc. released and waived	114
	 	 	 	 
	 	 	ARTICLE XVIII

    Effect of Merger, Consolidation, Etc.	 
	Sec.	18.01	Company
    may merge, consolidate, etc., upon certain terms	115
	 	 	Covenant
    against impairment of Lien thereby	115
	 	 	Assumption
    of obligation by successor	115
	Sec.	18.02	Rights
    of successor corporation	115
	 	 	Execution
    of indenture	116
	 	 	Issuance
    of bonds, etc., on basis of Property Additions by successor corporation	116
	Sec.	18.03	Extent
    of Lien of this Indenture upon property of successor corporation	117
	 	 	 	 
	 	 	ARTICLE XIX

    Concerning the Trustee	 
	Sec.	19.01	Qualification
    of Trustee	119
	 	 	Acceptance
    of trust—duties in general	119
	Sec.	19.02	Extent
    of Trustee’s liability—in general	119
	Sec.	19.03	Recitals
    deemed made by Company	121
	Sec.	19.04	Trustee
    not liable for debts incurred in operating property	121
	 	 	Trustee,
    etc., may own bonds	121
	Sec.	19.05	Trustee
    may give notices incidental to action by it	121
	Sec.	19.06	Notice
    by Trustee to Company—mailing	121
	Sec.	19.07	Trustee
    protected in relying on Certificates, etc.	122
	 	 	Trustee
    may consult counsel	122
	 	 	Responsibility
    in selection of experts	122
	Sec.	19.08	Moneys
    deposited with Trustee to be held in trust	122
	 	 	Interest
    on moneys with Trustee	122
	Sec.	19.09	Compensation
    of Trustee—lien therefor	123

 

     

    	 	xiii	 

    

 

	 	 	 	PAGE
	Sec.	19.10	Trustee
    may rely on facts established by certificate from Company	124
	Sec.	19.11	Action
    to be taken by Trustee who becomes creditor of Company	124
	Sec.	19.12	Action
    to be taken by Trustee acquiring conflicting interest	129
	 	 	Definition
    of conflicting interest	130
	Sec.	19.13	Trustee
    to transmit certain reports to bondholders	135
	 	 	Copies
    of reports to be filed with stock exchanges and Securities and Exchange Commission	137
	Sec.	19.14	Resignation
    or removal of Trustee	137
	Sec.	19.15	Appointment
    of successor Trustee	138
	Sec.	19.16	Appointment
    of additional trustees or co-trustees	139
	 	 	Conditions
    affecting such appointment	140
	 	 	Notice
    by bondholders to Trustee, notice to all trustees	141
	 	 	Contents,
    filing, etc.  of instrument appointing trustee	141
	 	 	Incapacity, etc.,
    of separate trustee or co-trustee	141
	Sec.	19.17	Acceptance
    by successor trustee	141
	 	 	Requirements
    of predecessor trustee upon retiring	142
	Sec.	19.18	Merger
    or consolidation of Trustee	142
	 	 	Delivery
    of bonds authenticated by predecessor Trustee	142
	 	 	Authentication
    by successor Trustee	143
	Sec.	19.19	Appointment
    of successor Trustee by Company	143
	Sec.	19.20	Appointment
    of authenticating agent	143
	 	 	 	 
	 	 	ARTICLE XX

    Discharge of Mortgage	 
	Sec.	20.01	Execution
    of requisite deeds and instruments	145
	Sec.	20.02	Bonds
    for payment of which money or obligations of the United States are deposited are deemed paid—provisos	146
	Sec.	20.03	Discharge
    of obligation to comply with covenants	147
	 	 	 	 
	 	 	ARTICLE XXI

    Meetings and Consents of Bondholders	 
	Sec.	21.01	Modifications
    of Indenture—in general	147
	Sec.	21.02	Call
    and notice of meeting of bondholders	147
	 	 	Place
    when called by Trustee	147
	 	 	Written
    notice	148
	 	 	Publication	148
	 	 	When
    notice not required	148

 

     

    	 	xiv	 

    

 

	 	 	 	PAGE
	Sec.	21.03	Attendance
    at meetings	148
	 	 	Trustee
    may make regulations as to deposits of bonds	148
	 	 	Certificate
    in lieu of production of unregistered bonds	149
	Sec.	21.04	Persons
    entitled to vote at meetings	150
	 	 	When
    production of bonds and further proof necessary	150
	 	 	Proxies—Acknowledgment	150
	Sec.	21.05	Temporary
    Chairman and Secretary	150
	 	 	Permanent
    Chairman and Secretary	150
	 	 	Inspectors
    of Votes	150
	Sec.	21.06	Quorum	151
	 	 	Notice
    of adjournment	151
	Sec.	21.07	Vote
    necessary for modification, alteration, etc., of Indenture	152
	 	 	Limitations
    on right of modification	152
	 	 	Bonds
    owned, held by, or for account of Company not counted	153
	Sec.	21.08	Record
    of meeting	153
	 	 	Conclusiveness
    of record	153
	 	 	Copy
    of resolution to be mailed to bondholders	153
	 	 	Proof
    of mailing to be filed with Trustee	153
	 	 	Effect
    of failure to mail	153
	 	 	Approval
    of resolution by Company	154
	 	 	Effective
    date of resolution	154
	Sec.	21.09	Notation
    of action taken may be made on bonds	154
	 	 	New
    bonds	154
	 	 	When
    supplemental instruments may be executed	154
	Sec.	21.10	(A) Trustee
    may receive written consent of bondholders in lieu of holding a meeting	155
	 	 	(B) Acknowledgment
    of written consent	155
	 	 	(C) Revocation
    of consent	156
	 	 	 	 
	 	 	ARTICLE XXII
    

    Miscellaneous	 
	Sec.	22.01	Benefits
    restricted to parties hereto and to holders of bonds and coupons	156
	Sec.	22.02	Investment
    of cash by Trustee in certain securities	157
	 	 	Such
    securities held by Trustee as part of Mortgaged and Pledged Property	157
	 	 	Retirement
    of bonds with funds in excess of specified amount held by Trustee for specified period	157

 

     

    	 	xv	 

    

 

	 	 	 	PAGE
	Sec.	22.03	Deposits
    for bonds and coupons not claimed for specified period to be returned to Company on demand	158
	Sec.	22.04	Rights
    may be waived or surrendered by Company	158
	 	 	Company
    may enter into further covenants for benefit of one or more series of bonds	158
	 	 	Trustee
    may join with Company in execution of instruments	159
	Sec.	22.05	Formal
    requirements of certificates and opinions hereunder	159
	Sec.	22.06	Concerning
    court costs and counsel fees in certain suits hereunder	160
	Sec.	22.07	Successors
    and assigns	160
	Sec.	22.08	Addresses
    of the parties hereto	160
	Sec.	22.09	In
    event of conflict, Trust Indenture Act provisions herein to control	161
	Sec.	22.10	Reference
    is to Trust Indenture Act in force on the date of execution hereof—exceptions	161
	Sec.	22.11	Titles
    of Articles of Indenture, marginal sectional, marginal Article references and table of contents not part thereof	161
	Sec.	22.12	Execution
    in counterparts	161
	Testimonium	162
	Signatures
    and Seals	162
	Acknowledgments	163
	Exhibit X	164
	Exhibit Y	167
	Exhibit Z	170

 

     

    

    

 

	INDENTURE, dated as of the ninth day
    of January, 1989, made and entered into by and between PACIFICORP, an Oregon corporation (the “Company”), and
    MORGAN GUARANTY TRUST COMPANY OF NEW YORK, a New York corporation, as trustee hereunder (the “Trustee”);	 	Parties* 
	 	 	 
	Whereas,
    the Company deems it necessary to borrow money for its corporate purposes and to issue its bonds therefor from time
    to time in one or more series, and to mortgage and pledge its property hereinafter described or mentioned to secure the payment
    of the same; and	 	Recitals 
	 	 	 
	Whereas,
    all acts necessary to make this Indenture a valid, binding and legal instrument for the security of such bonds have
    been performed, and the issue of such bonds, subject to the terms of this Indenture, has been in all respects duly authorized;	 	Compliance with legal requirements 
	 	 	 
	Now,
    Therefore, This Indenture Witnesseth: That Pacificorp, an Oregon corporation, in consideration
    of the premises and of good and valuable consideration to it duly paid by the Trustee at or before the ensealing and delivery
    of these presents, the receipt and sufficiency whereof is hereby acknowledged, and in order to secure the payment of both
    the principal of and interest and premium, if any, on the bonds from time to time issued hereunder, according to their tenor
    and effect and the performance of all provisions hereof (including any instruments supplemental hereto and any modification
    made as in this Indenture provided) and of such bonds, has mortgaged, pledged and granted a security interest in, and by these
    presents does mortgage, pledge and grant a security interest in (subject, however, to Excepted Encumbrances as defined in
    Section 1.06 hereof), unto Morgan Guaranty Trust Company of New York, as Trustee, and to its successor or successors
    in said trust, and to said Trustee and its successors and assigns forever, those certain parcels of real property described
    in Exhibit Z attached hereto and by this reference made a part hereof, and all other properties of the Company real,
    personal and mixed, of the kind or nature specifically mentioned herein or of any other kind or nature (except any hereinbefore
    or hereinafter expressly excepted), now owned or, subject to the provisions of Section 18.03 hereof, hereafter acquired
    by the Company (by purchase, consolidation, merger, donation, construction, erection or in any other way) and wheresoever
    situated, including (without limitation) all real	 	

Granting clauses

 

 

 

General and after-acquired property clauses 

 

 

 

		*	The margin notes and
headings were not a part of the Mortgage and Deed of Trust as executed.

 

     

    	 	2	 

    

 

	 	 	estate, lands, easements, servitudes, licenses,
    permits, franchises, privileges, rights of way and other rights in or relating to real estate or the occupancy of the same;
    all power sites, flowage rights, water rights, water locations, water appropriations, ditches, flumes, reservoirs, reservoir
    sites, canals, raceways, waterways, dams, dam sites, aqueducts, and all other rights or means for appropriating, conveying,
    storing and supplying water; all rights of way and roads; all plants for the generation of electricity and other forms of
    energy (whether now known or hereafter developed) by steam, water, sunlight, chemical processes and/or (without limitation)
    all other sources of power (whether now known or hereafter developed); all power houses, gas plants, street lighting systems,
    standards and other equipment incidental thereto; all telephone, radio, television and other communications, image and data
    transmission systems, air-conditioning systems and equipment incidental thereto, water wheels, water works, water systems,
    steam and hot water plants, substations, lines, service and supply systems, bridges, culverts, tracks, ice or refrigeration
    plants and equipment, offices, buildings and other structures and the equipment thereof; all machinery, engines, boilers,
    dynamos, turbines, electric, gas and other machines, prime movers, regulators, meters, transformers, generators (including,
    but not limited to, engine-driven generators and turbogenerator units), motors, electrical, gas and mechanical appliances,
    conduits, cables, water, steam, gas or other pipes, gas mains and pipes, service pipes, fittings, valves and connections,
    pole and transmission lines, towers, overhead conductors and devices, underground conduits, underground conductors and devices,
    wires, cables, tools, implements, apparatus, storage battery equipment, and all other fixtures and personalty; all municipal
    and other franchises, consents or permits; all lines for the transmission and distribution of electric current and other forms
    of energy, gas, steam, water or communications, images and data for any purpose including towers, poles, wires, cables, pipes,
    conduits, ducts and all apparatus for use in connection therewith and (except as hereinbefore or hereinafter expressly excepted)
    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 herein-before described;
	 	 	 
	Appurtenances, etc.	 	Together
    With all and singular the tenements, hereditaments, prescriptions, servitudes and appurtenances belonging or in anywise

 

     

    	 	3	 

    

 

	appertaining to the aforesaid property
    or any part thereof, with the reversion and reversions, remainder and remainders and (subject to the provisions of Section 13.01
    hereof) the tolls, rents, revenues, issues, earnings, income, product and profits thereof, and all the estate, right, title
    and interest and claim whatsoever, at law as well as in equity, which the Company now has or may hereafter acquire in and
    to the aforesaid property and franchises and every part and parcel thereof.	 	 
	 	 	 
	It Is
    Hereby Agreed by the Company that, subject to the provisions of Section 18.03 hereof, all the property, rights
    and franchises acquired by the Company (by purchase, consolidation, merger, donation, construction, erection or in any other
    way) after the date hereof, except any hereinbefore or hereinafter expressly excepted, shall be and are as fully mortgaged
    and pledged hereby and as fully embraced within the Lien hereof as if such property, rights and franchises were now owned
    by the Company and were specifically described herein and mortgaged hereby.	 	Agreement as to after-acquired property
	 	 	 
	Provided
    That the following are not and are not intended to be now or hereafter mortgaged or pledged hereunder, nor is a security
    interest therein hereby granted or intended to be granted, and the same are hereby expressly excepted from the Lien hereof
    and the operation of this Indenture, namely: (1) cash, shares of stock, bonds, notes and other obligations and other
    securities not hereinbefore or hereafter specifically pledged, paid, deposited, delivered or held hereunder or covenanted
    so to be; (2) merchandise, equipment, apparatus, materials or supplies held for the purpose of sale or other disposition
    in the usual course of business or for the purpose of repairing or replacing (in whole or part) any rolling stock, buses,
    motor coaches, automobiles or other vehicles or aircraft or boats, ships, or other vessels, and any fuel, oil and similar
    materials and supplies consumable in the operation of any of the properties of the Company; rolling stock, buses, motor coaches,
    automobiles and other vehicles and all aircraft; boats, ships and other vessels; all crops (both growing and harvested), timber
    (both growing and harvested), minerals (both in place and severed), and mineral rights and royalties; (3) bills, notes
    and other instruments and accounts receivable, judgments, demands, general intangibles and choses in action, and all contracts,
    leases and operating agreements not specifically pledged hereunder or hereafter covenanted so to be; (4) the last day
    of the term of any lease or leasehold which may hereafter become subject to the Lien hereof; (5)	 	Properties excepted from Lien of Indenture

 

     

    	 	4	 

    

  

	 	 	electric energy, gas, water, steam, ice,
    and other materials, forms of energy or products generated, manufactured, produced or purchased by the Company for sale, distribution
    or use in the ordinary course of its business; (6) any natural gas wells or natural gas leases or natural gas transportation
    lines or other works or property used primarily and principally in the production of natural gas or its transportation, primarily
    for the purpose of sale to natural gas customers or to a natural gas distribution or pipeline company, up to the point of
    connection with any distribution system; (7) the Company’s franchise to be a corporation; (8) any interest
    (as lessee, owner or otherwise) in the Wyodak Facility, including, without limitation, any equipment, parts, improvements,
    substitutions, replacements or other property relating thereto; and (9) all properties that PacifiCorp, a Maine corporation,
    and/or Utah Power & Light Company, a Utah corporation, have contracted to dispose of and that have been released
    from the liens of the Pacific Mortgage and the Utah Mortgage, respectively, prior to the date hereof, but title to which properties
    had not passed to the grantee(s) thereof as of said date; provided, however, that the property and rights expressly excepted
    from the Lien and operation of this Indenture in the above subdivisions (2) and (3) shall (to the extent permitted
    by law) cease to be so excepted in the event and as of the date that the Trustee or a receiver for the Trustee shall enter
    upon and take possession of the Mortgaged and Pledged Property in the manner provided in Article XV hereof by reason
    of the occurrence of a Default;
	 	 	 
	Subordination of Lien of Indenture	 	And Provided
    Further, that as to any property of the Company that is now or hereafter becomes subject to the lien of a Class “A”
    Mortgage pursuant to the after-acquired property provisions thereof, the Lien hereof shall at all times be junior and subordinate
    to the lien of such Class “A” Mortgage;
	 	 	 
	Habendum	 	To Have
    And To Hold all such properties, real, personal and mixed, mortgaged and pledged hereby, or in which a security interest
    has been granted by the Company as aforesaid, or intended so to be (subject, however, to Excepted Encumbrances as defined
    in Section 1.06 hereof), unto Morgan Guaranty Trust Company of New York, as Trustee, and its successors and assigns forever;

 

     

    	 	5	 

    

 

	In
    Trust Nevertheless, upon the terms and trusts herein set forth, for the equal pro rata benefit and security of all
    and each of the bonds and coupons issued and to be issued hereunder, or any of them, in accordance with the terms of this
    Indenture, without preference, priority or distinction as to the lien of any of said bonds and coupons over any others thereof
    by reason of priority in the time of the issue or negotiation thereof, or otherwise howsoever, subject to the provisions hereinafter
    set forth in reference to extended, transferred or pledged coupons and claims for interest; it being intended that, subject
    as aforesaid, the lien and security of all of said bonds and coupons of all series issued or to be issued hereunder shall
    take effect from the execution and delivery of this Indenture, and that the Lien and security of this Indenture shall take
    effect from the date of execution and delivery hereof as though all of the said bonds of all series were actually authenticated
    and delivered and issued upon such date.	 	Grant in Trust
	 	 	 
	Provided,
    However, that these presents are upon the condition that if the Company, its successors or assigns, shall pay or cause
    to be paid the principal of and interest on said bonds, together with the premium, if any, payable on such of said bonds as
    may have been called for redemption prior to maturity, or shall provide, as permitted hereby, for the payment of the entire
    amount due or to become due thereon for principal, interest and premium, if any, and if the Company shall also pay or cause
    to be paid all other sums payable hereunder by it, then this Indenture and the lien and rights hereby created shall cease,
    determine and be void, otherwise to be and remain in full force and effect.	 	Defeasance clause
	 	 	 
	It Is
    Hereby Covenanted, Declared And Agreed by and between the parties hereto
    that all such bonds and coupons are to be authenticated, delivered and issued, and that all property subject or to become
    subject hereto is to be held subject to the further covenants, conditions, uses and trusts hereinafter set forth, and the
    Company, for itself and its successors and assigns, does hereby covenant and agree to and with the Trustee and its successor
    or successors in such trust, for the benefit of those who shall hold said bonds and interest coupons, or any of them, as follows:	 	Covenant clause

 

     

    	 	6	 

    

 

	 	 	Art. I; §§1.01, 1.02
	 	 	 
	Article I

    Definitions

 

	Explanatory
    statement	 	Section 1.01     The
    terms defined in the next six Sections hereof, numbered from 1.02 to 1.07, both inclusive, shall (except as in this Indenture
    or in any indenture supplemental hereto otherwise expressly provided) for all purposes of this Indenture, and of any indenture
    supplemental hereto, have the respective meanings in such Sections specified. Subject to Section 8.01 hereof, any term
    defined in Section 303 of the Trust Indenture Act and not defined in this Indenture shall have the meaning assigned to
    such term in such Section 303 as in force on the date of the execution of this Indenture.
	 
	Construction
    of accounting term	 	The accounting terms used in this
    Indenture shall be construed in accordance with generally accepted accounting principles and practices in use at the time
    by companies operating like properties or, at the option of the Company, from time to time, in accordance with generally accepted
    accounting principles and practices in use at the date of this Indenture or at the date of any Class “A” Mortgage,
    as hereinafter defined, so long as such Class “A” Mortgage is in effect.
	 
	Evidence
    of Trustee’s approval of signer	 	The acceptance by the Trustee of
    any document the signer of which is required by some provision hereof to be approved by the Trustee, shall be sufficient evidence
    of its approval of the signer within the meaning of this Indenture.
	 
	Requirement
    for Officer’s Certificate and Opinion of Counsel	 	Every request or application by the
    Company for action by the Trustee under any of the provisions of this Indenture shall be accompanied by the Officers’
    Certificate and the Opinion of Counsel provided for in Section 22.05 hereof.
	 
		 	A Resolution delivered to the Trustee
    shall be sufficient evidence of the Board of Director’s actions set forth therein.
	 
	“Adjusted
    Net Earnings”	 	Section 1.02     The
    term “Adjusted Net Earnings” is defined in Section 1.07 hereof.
	 
	“Annual
    Interest Requirements”	 	The term “Annual
    Interest Requirements” is defined in Section 1.07 hereof.

 

     

    	 	7	 

    

  

	§1.02	 	 
	 	 	 
	The term “Authorized Executive Officer of the Company”
    shall mean its Chairman of the Board, Chief Executive Officer, Chief Operating Officer, President or any Vice-President.	 	“Authorized Executive Officer of the Company”
	 	 	 
	The term “Authorized Financial Officer of the Company” shall
    mean its Chief Financial Officer, Chief Accounting Officer, Controller, Comptroller, Treasurer or any Assistant Treasurer.	 	“Authorized Financial Officer of the Company”
	 	 	 
	The term “Authorized Purposes” shall mean the authentication
    and delivery of bonds, the release of property and/or the withdrawal of cash under any of the provisions of this Indenture.	 	“Authorized Purposes”
	 	 	 
	The term “Board of Directors” shall mean either the board of
    directors of the Company or any duly constituted committee authorized by Resolution to act for said board hereunder.	 	“Board of Directors”
	 	 	 
	The term “Class “A” Bonds” shall mean bonds
    now or hereafter issued and outstanding under (1) the Pacific Mortgage, (2) the Utah Mortgage and/or (3) any
    other Class “A” Mortgage or Mortgages.	 	“Class “A” Bonds”
	 	 	 
	The term “Class “A” Mortgage” shall mean the
    Pacific Mortgage, the Utah Mortgage and each other mortgage or deed of trust or similar indenture entered into by any corporation
    that is subsequently merged into or consolidated with the Company and hereafter designated an additional Class “A”
    Mortgage in a supplemental indenture to be executed and recorded as provided in Section 11.06 hereof.	 	“Class “A” Mortgage”
	 	 	 
	The term “Company” shall mean PacifiCorp, an Oregon corporation,
    and subject to the provisions of Article XVIII hereof, shall also include its successors and assigns. For the purposes
    of (i) clause (2) of subdivision (c) of Section 9.03 hereof, (ii) the second paragraph of Section 15.07
    hereof, (iii) the second and third paragraphs of Section 15.14 hereof, (iv) Section 19.11 hereof, (v) Section 19.12
    hereof and (vi) paragraph (3) of subdivision (a) of Section 19.13 hereof, the word “Company”
    shall be deemed to mean and refer to the Company and any other obligor on the bonds secured hereby.	 	“Company”
	 	 	 
	The term “Cost” with respect to Property Additions is defined
    in Section 1.04(III) hereof.	 	“Cost”
	 	 	 
	The term “Daily Newspaper” shall mean a newspaper of general
    circulation, printed in the English language and customarily published	 	“Daily Newspaper”

 

     

    	 	8	 

    

 

	 	 	§1.02
	 	 	 
		 	on each business day, whether or not published on Saturdays, Sundays or
    holidays; or, in the alternative, shall mean such form of communication as may have come into general use for the dissemination
    of information of similar import. In the event that successive weekly publications in a Daily Newspaper are required hereunder
    they may be made (unless otherwise expressly provided herein) on the same or different days of the week and in the same or
    in different Daily Newspapers. In case, by reason of the suspension of publication of any Daily Newspaper, or by reason of
    any other cause, it shall be impractical without extraordinary expense to make publication of any notice in a Daily Newspaper
    as required by this Indenture, then such method of publication or notification as shall be made with the approval of the Trustee
    shall be deemed the equivalent of the required publication of such notice in a Daily Newspaper.
	 	 	 
	“Defaults”	 	The term “Defaults” is defined in Section 15.01 hereof.
	 	 	 
	“Engineer”	 	The term “Engineer” shall mean an individual who is an engineer,
    or a co-partnership or a corporation engaged in an engineering business, who or which, unless required to be independent,
    may be employed by the Company.
	 	 	 
	“Engineer’s Certificate”	 	The term “Engineer’s Certificate” shall mean a certificate
    signed by an Authorized Executive Officer of the Company and by an Engineer appointed by the Board of Directors; provided,
    however, if any property or securities are to be released from the Lien of this Indenture, the Engineer’s Certificate
    as to the fair value of such property or securities and as to matters referred to in clause (f) of subdivision (2) of
    Section 13.03 and clause (y) of Section 13.04(2)(a) hereof shall be made by an independent Engineer, appraiser,
    or other expert (who or which may be appointed by an Authorized Executive Officer of the Company), if the fair value of such
    property or securities and of all other property or securities released since the commencement of the then current calendar
    year, as set forth in the certificates required by this Indenture, is ten per centum (10%) or more of the aggregate principal
    amount of the bonds at the time Outstanding; but such a certificate of an independent Engineer, appraiser, or other expert
    shall not be required in the case of any release of property or securities, if the fair value thereof as set forth in the
    certificates required by this Indenture is less than Twenty-five Thousand Dollars ($25,000) or less than one per centum (1%)
    of the aggregate amount of (x) the principal amount of the bonds at the time Outstanding and (y) the principal amount
    of the Class A Bonds at the time Outstanding other than

 

     

    	 	9	 

    

  

	§1.02	 	 
	 	 	 
	Class A Bonds delivered to and held by the Trustee hereunder.
    Each such certificate shall include the statements provided for in Section 22.05 hereof.	 	
	 	 	 
	The term “Excepted Encumbrances” is defined in Section 1.06
    hereof.	 	“Excepted Encumbrances”
	 	 	 
	The term “Federal Bankruptcy Act” shall mean the Bankruptcy
    Reform Act of 1978, any amendments thereto, or any law substituted therefor.	 	“Federal Bankruptcy Act”
	 	 	 
	The term “Fuel Transportation Facilities” shall mean railroad
    cars, conveyors, barges and other transportation equipment (other than trucks) used or to be used primarily for the transportation
    of coal, oil, nuclear fuel or other fuel.	 	“Fuel Transportation Facilities”
	 	 	 
	The term “Funded Bonds” is defined in Section 1.05 hereof.	 	“Funded Bonds”
	 	 	 
	The term “Funded Cash” is defined in Section 1.05 hereof.	 	“Funded Cash”
	 	 	 
	The term “Funded Property” is defined in Section 1.05 hereof.	 	“Funded Property”
	 	 	 
	The term “independent”, when applied to any accountant, Engineer,
    appraiser or other expert, shall mean such a person who (a) is in fact independent, (b) does not have any direct
    material financial interest in the Company or in any other obligor upon the bonds or in any affiliate of the Company or of
    such other obligor and (c) is not connected with the Company or such other obligor as an officer, employee, promoter,
    underwriter, trustee, partner, director or any person performing similar functions, selected by an Authorized Executive Officer
    of the Company and who is approved by the Trustee in the exercise of reasonable care.	 	“independent”
	 	 	 
	The term “Independent Engineer’s Certificate” shall mean
    a certificate signed by an independent Engineer. Each such certificate shall include the statements provided for in Section 22.05
    hereof.	 	“Independent Engineer’s Certificate”
	 	 	 
	The term “Investment Securities” shall mean any of the following
    obligations or securities on which neither the Company nor any of its subsidiaries or its affiliates is the obligor: (a) bonds
    or other obligations of the United States of America; (b) interest bearing deposit accounts (which may be represented
    by certificates of deposit) in national or state banks (which may include the Trustee) having a combined capital and surplus
    of not less than Ten Million Dollars ($10,000,000), or savings and loan associations having total assets of not less than
    Forty Million Dollars	 	“Investment Securities”

 

     

    	 	10	 

    

  

	 	 	§§1.02,
    1.03
	 	 	 
	 	 	($40,000,000); (c) bankers’ acceptances drawn on
    and accepted by commercial banks (which may include the Trustee) having a combined capital and surplus of not less than Ten
    Million Dollars ($10,000,000); (d) direct obligations of, or obligations the principal of and interest on which are unconditionally
    guaranteed by, any State of the United States of America, the District of Columbia or the Commonwealth of Puerto Rico, or
    any political subdivision of any of the foregoing, which are rated in any of the three highest rating categories without regard
    to modifiers by a nationally recognized rating agency; (e) bonds or other obligations of any agency or instrumentality
    of the United States of America; (f) commercial or finance company paper which is rated in any of the two highest rating
    categories without regard to modifiers by a nationally recognized rating agency; (g) corporate debt securities rated
    in any of the three highest rating categories without regard to modifiers by a nationally recognized rating agency; (h) repurchase
    agreements with banking or financial institutions having a combined capital and surplus of not less than Ten Million Dollars
    ($10,000,000) (which may include the Trustee) with respect to any of the foregoing obligations or securities; and (i) any
    other obligations or securities which may lawfully be purchased by the Trustee.
	 	 	 
	“Lien hereof” and “Lien of this Indenture”	 	The terms “Lien hereof” and “Lien of this Indenture”
    shall mean the lien created by these presents (including the after-acquired property clauses hereof) and the lien created
    by any subsequent mortgage, pledge, grant of a security interest or delivery to the Trustee that effectively constitutes any
    property as a part of the security held by the Trustee upon the terms and trusts and subject to the covenants, conditions
    and uses specified in this Indenture.
	 	 	 
	“Mortgage” or “this Indenture”	 	The terms “Mortgage” or “this Indenture” shall mean
    this instrument and all indentures supplemental hereto.
	 	 	 
	“Mortgaged and Pledged Property”	 	Section 1.03     The
    term “Mortgaged and Pledged Property” shall mean as of any particular time the property which at said time is
    subject to the Lien of this Indenture.
	 	 	 
	“Net Earning Certificate”	 	The term “Net Earning Certificate” is defined in Section 1.07
    hereof.
	 	 	  
	“Officers’ Certificate”	 	The term “Officers’ Certificate” shall mean a certificate
    signed by an Authorized Executive Officer of the Company, and by the Secretary or an Assistant Secretary or an Authorized
    Financial Officer of the

 

     

    	 	11	 

    

  

	§1.03	 	 
	 	 	 
	Company. Each such certificate shall include the statements
    provided for in Section 22.05 hereof.	 	 
	 	 	 
	The term “Opinion of Counsel” shall mean an opinion in writing
    signed by counsel (who may be an employee of or of counsel to the Company) appointed by an Authorized Executive Officer of
    the Company. Each such opinion shall include the statements provided for in Section 22.05 hereof.	 	“Opinion of Counsel”
	 	 	 
	The term “Original Trustee” shall mean Morgan Guaranty Trust
    Company of New York.	 	“Original Trustee”
	 	 	 
	The term “Outstanding”, subject to the provisions of Sections
    15.07 and 21.07 hereof, shall mean as of any particular time with respect to bonds issued or issuable under this Indenture
    all bonds which theretofore shall have been authenticated and delivered by the Trustee under this Indenture, except (a) bonds
    theretofore paid, retired, redeemed, discharged or cancelled, or bonds for the purchase, payment or redemption of which money
    in the necessary amount shall have been deposited with or shall then be held by the Trustee with irrevocable direction so
    to apply the same, provided that, in the case of redemption, the notice required by Article XII hereof shall have been
    given or have been provided for to the satisfaction of the Trustee, (b) bonds deposited with or held in pledge by the
    Trustee under any of the provisions of this Indenture, including any so held under any sinking or other fund, and (c) bonds
    authenticated and delivered hereunder, upon transfer of which or in exchange or substitution for and/or in lieu of which other
    bonds have been authenticated and delivered under any of the provisions of this Indenture.	 	“Outstanding”
	 	 	 
	The term “Outstanding” with respect to Class “A”
    Bonds shall have the same meaning as it has with respect to such Class “A” Bonds under the applicable Class “A”
    Mortgage.	 	“Outstanding” (with respect to Qualified
    Lien Bonds)
	 	 	 
	The term “Outstanding” with respect to Qualified Lien Bonds
    is defined in Section 1.06 hereof.	 	“Outstanding” (with respect to Class “A”
    Bonds)
	 	 	 
	The term “Pacific Mortgage” shall mean the Mortgage and Deed
    of Trust, dated as of July 1, 1947, between Pacific Power & Light Company and Guaranty Trust Company of New
    York and Oliver R. Brooks, as Trustees, as heretofore or hereafter amended or supplemented.	 	“Pacific Mortgage”
	 	 	 
	The term “Proceeds of Released Property” shall mean the aggregate
    of the cash deposited with or received by the Trustee pursuant to the	 	“Proceeds of Released Property”

 

     

    	 	12	 

    

 

	 	 	§1.03
	 	 	 
		 	provisions of Section 13.03,
    Section 13.05 (except such cash as is to be paid over to the Company under the provisions of Section 13.06), or
    Section 13.07 hereof.
	 	 	 
	“Property Additions”	 	The term “Property Additions”
    is defined in Section 1.04 hereof.
	 	 	 
	“Qualified Lien”	 	The term “Qualified Lien”
    is defined in Section 1.06 hereof.
	 	 	 
	“Qualified Lien Bonds”	 	The term “Qualified Lien Bonds”
    is defined in Section 1.06 hereof.
	 	 	 
	“Resolution”	 	The term “Resolution”
    shall mean a resolution certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by
    the Board of Directors and to be in full force and effect on the date certified.
	 	 	 
	“Responsible Officers”	 	The term “Responsible Officers”
    of the Trustee shall mean any officers of the Trustee assigned by the Trustee to administer its corporate trust business;
    and the term “Responsible Officer” shall mean and include any of said officers.
	 	 	 
	“Retired Bonds”	 	The term “Retired Bonds”
    shall mean any bonds authenticated and delivered under this Indenture (and not having been made the basis under any of the
    provisions of this Indenture of one or more Authorized Purposes, subject to the provisions of Section 13.03 and Section 13.06
    hereof permitting the revocation of the waiver of the right to the authentication and delivery of bonds) that shall have been
    purchased, paid, retired, redeemed or cancelled or surrendered to the Trustee for cancellation or for the purchase, payment
    or redemption of which moneys in the necessary amount shall have been deposited with or shall then be held by the Trustee
    with irrevocable direction so to apply the same (provided that any such purchase, payment, retirement, redemption, cancellation
    or surrender of bonds shall have been, or is to be, effected otherwise than with cash which, after giving effect to the provisions
    of Sections 1.05 and 13.06 hereof, is then deemed to be or to have been Funded Cash, and, in the case of redemption, the notice
    required therefor shall have been given or have been provided for to the satisfaction of the Trustee).
	 	 	 
	“Space Satellites”	 	The term “Space Satellites”
    shall mean any form of communications satellites, solar power satellites, space satellites, space stations and other analogous
    facilities whether or not in the Earth’s atmosphere.
	 	 	 
	“Trust Indenture Act”	 	The term “Trust Indenture Act”
    shall mean the Trust Indenture Act of 1939, as amended and as in effect as of the date hereof, except as provided in Sections
    8.01 and 21.09 hereof.

 

     

    	 	13	 

    

 

	§§1.03,
    1.04	 	 
	 	 	 
	The term “Trustee” shall mean Morgan Guaranty Trust
    Company of New York and, subject to the provisions of Article XIX, shall also include its successors and assigns.	 	“Trustee”
	 	 	 
	The term “underwriter” is defined in Section 19.12 hereof.	 	“underwriter”
	 	 	 
	The term “Utah Mortgage” shall mean the Mortgage and Deed of
    Trust, dated as of December 1, 1943, between Utah Power & Light Company and Guaranty Trust Company of New York
    and Arthur E. Burke, as Trustees, as heretofore or hereafter amended or supplemented.	 	“Utah Mortgage”
	 	 	 
	The term “Wyodak Facility” shall mean that certain coal-fired,
    direct cycle, air-cooled steam electric generating station having a name-plate rating of 330,000 kilowatts located at Wyodak,
    Wyoming, including the real property on which such station is located and the coal supply system, water supply facilities
    and related real property easements, permits and rights-of-way, as more fully described in the Lease Agreement dated as of
    June 8, 1978 between PacifiCorp, a Maine corporation (formerly Pacific Power & Light Company) and Black Hills
    Corporation (formerly Black Hills Power and Light Company), as lessees, and The Wyoming National Bank Casper (formerly The
    Wyoming National Bank of Casper N.A.), as owner trustee and lessor, as amended.	 	“Wyodak Facility”
	 	 	 
	Section 1.04     (I) 
    The term “Property Additions” shall mean all real estate, lands, easements, servitudes, licenses, permits, franchises,
    privileges, rights of way and other rights in or relating to real estate or the occupancy of the same; all power sites, flowage
    rights, water rights, water locations, water appropriations, ditches, flumes, reservoirs, reservoir sites, canals, raceways,
    waterways, dams, dam sites, aqueducts, and all other rights or means for appropriating, conveying, storing and supplying
    water; all rights of way and roads; all plants for the generation of electricity and other forms of energy (whether now
    known or hereafter developed) by steam, water, sunlight, chemical processes and/or (without limitation) all other sources
    of power (whether now known or hereafter developed), all distribution systems; all service systems; all supply systems;
    Fuel Transportation Facilities; all power houses, gas plants, Space Satellites, street lighting systems, standards and
    other equipment incidental thereto; all telephone, radio, television and other communication and data transmission systems,
    air-conditioning systems and equipment incidental thereto, water wheels, water works, water systems, steam heat and hot water
    plants, substations, lines, service and supply systems, bridges, culverts, tracks, ice or refrigeration plants and equipment,
    offices, buildings and other structures and the equipment	 	“Property Additions”

 

     

    	 	14	 

    

 

	 	 	§1.04
	 	 	 
	 	 	thereof; all machinery, engines, boilers, dynamos, turbines,
    electric, gas and other machines, prime movers, regulators, meters, transformers, generators (including, but not limited to,
    engine driven generator and turbogenerator units), motors, electrical, gas and mechanical appliances, conduits, cables, water,
    steam heat, gas or other pipes, and pipe lines (including, but not limited to, pipe lines for supplying fuel to the Company’s
    plants), gas mains and pipes, service pipes, fittings, valves and connections, pole and transmission lines, towers, overhead
    conductors and devices, underground conduits, underground conductors and devices, wires, cables, tools, implements, apparatus,
    storage battery equipment and all other fixtures and personalty; all municipal and other franchises, consents or permits;
    all lines for the transmission and distribution of electric current and other forms of energy, gas, steam heat, water or communications
    and data for any purpose including towers, poles, wires, cables, pipes, conduits, ducts and all apparatus for use in connection
    therewith; and other property, real or personal, and improvements, extensions, additions, renewals or replacements, acquired
    by the Company by purchase, consolidation, merger, donation, construction, erection or in any other way whatsoever, or in
    the process of construction or erection and used or usable or to be used in or in connection with the business or businesses
    of generating, manufacturing, exploring for and developing, producing, transmitting, transporting, distributing, supplying
    or managing the use of energy or fuel in any form, including, without limitation, electricity or gas for light, heat, power,
    refrigeration or other purposes or of generating, manufacturing, producing, transmitting, transporting, distributing or supplying
    water for drinking, power, heat or other purposes or steam or hot water for power, heat or other purposes.
	 	 	 
	Property not included as Property Additions	 	The term “Property Additions” shall not, however, include (1) any
    shares of stock, bonds, notes or other obligations or other securities or contracts, leases, or operating agreements, bills,
    notes and other instruments, accounts receivable, general intangibles or choses in action, or (2) except as herein otherwise
    specifically provided, going value, goodwill, franchises or governmental permits or licenses granted to or acquired by the
    Company, as such, separate and distinct from the property operated thereunder or in connection therewith or incident thereto,
    or (3) any merchandise, equipment, apparatus, materials or supplies held for the purpose of sale or other disposition
    in the usual course of business or for the purpose of repairing or replacing (in whole or in part) any rolling stock, buses,
    motor coaches, automobiles or other

 

     

    	 	15	 

    

  

	§1.04	 	 
	 	 	 
	vehicles or aircraft, and fuel, oil and similar materials and
    supplies consumable in the operation of any of the properties of the Company; or rolling stock, buses, motor coaches,
    automobiles or other vehicles, or any aircraft (other than Fuel Transportation Facilities and Space Satellites), or (4) any
    natural gas wells or natural gas leases or natural gas transportation lines or other works or property used primarily and
    principally in the production of natural gas or its transportation, primarily for the purpose of sale to natural gas customers
    or to a natural gas distribution or pipeline company, up to the point of connection with any distribution system, or timber,
    minerals, mineral rights and royalties, or (5) any property, the cost of acquiring, making or constructing of which is
    chargeable to operating expenses.	 	 
	 	 	 
	(II)  When any Property Additions are certified to the Trustee in any
    certificate in any application under any of the provisions of this Indenture as the basis of one or more Authorized Purposes
    (except in the case of the release of property, or the withdrawal of cash representing the proceeds of insurance on damaged
    or destroyed property or Proceeds of Released Property or payment of or on account of obligations secured by purchase money
    mortgages, in each case on the basis of Property Additions acquired or constructed within ninety (90) days prior to the date
    of the application for such release, or to the receipt by the Trustee of such cash, or subsequent to such application or receipt
    of cash),	 	Provisions for netting Property Additions
	 	 	 
	(A)  there shall be deducted from the Cost or fair value thereof to
    the Company, as the case may be (as of the date so certified), an amount equal to the Cost (or as to Property Additions of
    which the fair value to the Company at the time the same became Funded Property was less than the Cost as determined pursuant
    to this Section, then such fair value in lieu of Cost) of all Funded Property of the Company retired (other than the Funded
    Property, if any, in connection with the application for the release of which such certificate is filed) and not theretofore
    deducted from the Cost or fair value to the Company of Property Additions theretofore certified to the Trustee, and	 	 
	 	 	 
	(B)  there may, at the option of the Company, be added to such Cost
    or fair value, as the case may be, the sum of	 	 
	 	 	 
	(a)  the principal amount of any obligations secured by purchase money
    mortgages and any cash (other than proceeds	 	 

 

     

    	 	16	 

    

 

	 	 	§1.04
	 	 	 
	 	 	of such purchase money obligations), not theretofore so added
    and which the Company then elects so to add, received by the Trustee or the trustee or other holder of any Qualified Lien,
    in either case representing the proceeds of insurance on, or of the release or other disposition of, Funded Property retired;
	 	 	 
	 	 	(b)  ten-sevenths (10/7ths) of the principal amount of any bond(s) or
    fraction of a bond, not theretofore so added and which the Company then elects so to add, the right to the authentication
    and delivery of which under the provisions of Section 4.01, Section 5.04 or Section 6.01 hereof shall have
    been waived as the basis of the release of Funded Property retired; and
	 	 	 
	 	 	(c)  the Cost to the Company of any Property Additions (including Property
    Additions subject to the lien of a Class “A” Mortgage) not theretofore so added and which the Company then
    elects so to add, to the extent that the same shall have been substituted for Funded Property retired (including Funded Property
    subject to the lien of a Class “A” Mortgage);
	 	 	 
	 	 	provided, however, that the aggregate of the amounts added under clause
    (B) above shall in no event exceed the amounts deducted under clause (A) above and provided further, that neither
    any reduction in the Cost or book value of property recorded in the plant account of the Company nor the transfer of any amounts
    appearing in such account to intangible and/or adjustment accounts otherwise than in connection with actual retirements of
    physical property abandoned, destroyed, released or disposed of, or retired from plant account, shall be deemed to be Funded
    Property retired for the purposes of this Section.
	 	 	 
	“Cost”	 	(III)  The term “Cost” with respect to Property Additions
    made the basis under any of the provisions of this Indenture of one or more Authorized Purposes shall mean, in the case of
    Property Additions subject to a Class “A” Mortgage at the time of acquisition by the Company, and so long
    as such Class “A” Mortgage is in effect, the “Cost” for similar purposes under such Class “A”
    Mortgage and, in the case of any other Property Additions, the sum of (i) any cash forming a part of such Cost, (ii) an
    amount equivalent to the fair market value in  cash (as of the date of delivery) of any securities delivered in payment
    therefor or for the acquisition thereof, (iii) the principal amount of any prior lien bonds secured by prior lien (other
    than a Class “A” Mortgage) upon such Property Additions, outstanding at the time of their acquisition,
    unless

 

     

    	 	17	 

    

 

	§§1.04, 1.05	 	 
	 	 	 
	the Engineer’s Certificate in subdivision (3) of
    Section 5.06 hereof provided for shall state that the required amount has theretofore been deducted in compliance with
    the provisions of Section 5.04 hereof when other Property Additions subject to such prior lien shall have been made the
    basis under any of the provisions of this Indenture of one or more Authorized Purposes, and (iv) the principal amount
    of any other indebtedness incurred or assumed as all or part of the Cost to the Company of such Property Additions; provided,
    however, that, notwithstanding any other provision of this Indenture, in any case where Property Additions shall have been
    acquired (otherwise than by construction) by the Company without any consideration consisting of cash, property or securities
    or the incurring or assumption of indebtedness, no determination of Cost shall be required, and wherever in this Indenture
    provision is made for Cost or fair value, the Cost, in such case, shall mean an amount equal to the fair value thereof.	 	 
	 	 	 
	If any Property Additions are shown by the Engineer’s Certificate
    provided for in subdivision (3) of Section 5.06 hereof to include property which has been used or operated by others
    than the Company in a business similar to that in which it has been or is to be used or operated by the Company, the Cost
    thereof may include the amount of cash or the value of any portion of the securities paid or delivered for any rights and
    intangible property simultaneously acquired for which no separate or distinct consideration shall have been paid or apportioned,
    and in such case the term Property Additions as defined herein may include such rights and intangible property.	 	 
	 	 	 
	For the purposes of the deductions required by this Section, the Cost and/or
    the fair value to the Company of Funded Property retired shall be determined as follows: (aa) in the case of property which
    at any time is or was Funded Property under a Class “A” Mortgage, the Cost thereof shall be the “Cost”
    for similar purposes under such Class “A” Mortgage; and (bb) in the case of any other Property Additions
    retired, the Cost or the fair value thereof to the Company shall be the Cost or the fair value thereof to the Company at the
    time such Property Additions became Funded Property.	 	 
	 	 	 
	Section 1.05     The
    term “Funded Property” shall mean:	 	“Funded Property” 
	 	 	 
	(1)  all property, except
    property expressly excepted from the Lien of this Indenture, owned by Pacific Power & Light Company on July 1,
    1947, or owned by Utah Power & Light Company on December 1, 1943; and any property subject to any other
    Class “A”	 	 

 

     

    	 	18	 

    

 

	 	§1.05
	 	 	 
	 	 	Mortgage that was funded (i.e., not available for Authorized
    Purposes) under such Class “A” Mortgage immediately after such Class “A” Mortgage came into
    existence;
	 	 	 
	 	 	(2)  all Property Additions to the extent that the same shall have
    been made the basis of the authentication and delivery of bonds under this Indenture;
	 	 	 
	 	 	(3)  all Property Additions to the extent that the same shall have
    been made the basis of the release of property from the Lien of this Indenture, subject, however, to the provisions of Section 13.03
    hereof;
	 	 	 
	 	 	(4)  all Property Additions to the extent that the same shall have
    been substituted (otherwise than under the release or cash withdrawal provisions hereof) for Funded Property retired;
	 	 	 
	 	 	(5)  all Property Additions to the extent that the same shall have
    been made the basis of the withdrawal of any Funded Cash, as hereinafter defined, held by the Trustee hereunder or by the
    trustee or other holder of a Qualified Lien as hereinafter defined, subject, however, to the provisions of subdivision (III) of
    Section 9.05 hereof and clause (a) of Section 13.06 hereof, and except to the extent that any such Property
    Additions shall no longer be deemed to be Funded Property in accordance with the provisions of clause (b) of Section 13.06
    hereof;
	 	 	 
	 	 	(6)  all property to the extent that the same shall have been made
    the basis of the authentication and delivery of Outstanding Class “A” Bonds, or that shall have been made
    the basis of the authentication and delivery of retired Class “A” Bonds that were utilized to issue Outstanding
    Class “A” Bonds (e.g., as contemplated by Section 29 of the Pacific Mortgage or Section 29 of the
    Utah Mortgage);
	 	 	 
	 	 	(7)  all property to the extent that the same shall have been made
    the basis of the release, or substituted for cash made the basis of the release, from the lien of a Class “A”
    Mortgage of property that had been made the basis of the authentication and delivery of Outstanding Class “A”
    Bonds, or retired Class “A” Bonds that were utilized to issue Outstanding Class “A” Bonds,
    or that had been substituted for such property; and
	 	 	 
	 	 	(8)  all property to the extent that (a) the same shall have been
    made the basis of the authentication and delivery of either Class “A” Bonds held by the Trustee hereunder
    as specified in an Officers’ Certificate pursuant to clause (b) of Section 14.01 hereof, or retired

 

     

    	 	19	 

    

 

	§1.05	 	 
	 	 	 
	Class “A” Bonds that were utilized to issue
    the Class “A” Bonds specified in such an Officers’ Certificate, or (b) the same shall have been
    made the basis of the release, or substitution for cash made the basis of the release, from the lien of a Class “A”
    Mortgage of property that had been the basis of the authentication and delivery of Class “A” Bonds specified
    in such Officers’ Certificate, or that had been substituted for such property.	 	 
	 	 	 
	In the event that in any certificate filed with the Trustee in connection
    with any of the transactions referred to in clauses (2), (3), (5), (6) and (7) of this Section, only a part of the
    Cost or fair value of the Property Additions described in such certificate shall be required for the purposes of such certificate,
    then such Property Additions shall be deemed to be Funded Property only to the extent so required for the purpose of such
    certificate.	 	 
	 	 	 
	All Funded Property that shall be retired on the books of the Company from
    plant account or abandoned, destroyed, released or otherwise disposed of shall for the purpose of Section 1.04 hereof
    be deemed Funded Property retired and for other purposes of this Indenture shall thereupon cease to be Funded Property but
    as in this Indenture provided may at any time thereafter again become Funded Property.	 	 
	 	 	 
	The term “Funded Bonds” shall mean Class “A”
    Bonds deposited hereunder.	 	 “Funded Bonds”
	 	 	 
	The term “Funded Cash” shall mean:	 	“Funded Cash” 
	 	 	 
	(a)  cash, held by the Trustee hereunder, or by the trustee or other
    holder of a Qualified Lien as hereinafter defined, to the extent that it represents the proceeds of insurance on or the release
    of or the taking by eminent domain of property, or the proceeds of the release of obligations secured by purchase money mortgage
    which obligations have been delivered to the Trustee or to the trustee or other holder of a Qualified Lien pursuant to Article XIII
    hereof and used as a credit in any application for the release of property hereunder, or the proceeds of payment to the Trustee
    or to such other trustee or holder on account of the principal of obligations secured by purchase money mortgage which obligations
    have been delivered to it pursuant to Article XIII hereof and used as a credit in any application for the release of
    property hereunder;	 	 

 

     

    	 	20	 

    

 

	 	 	§§1.05, 1.06
	 	 	 
	 	 	(b)  any cash deposited with the Trustee under Section 7.01
    and/or 9.13 hereof; and
	 	 	 
	 	 	(c)  any cash received by the Trustee from the purchase, redemption,
    or payment at maturity of Funded Bonds.
	 	 	 
	“Excepted Encumbrances”	 	Section 1.06     The term “Excepted
    Encumbrances” shall mean as of any particular time any of the following:
	 	 	 
	 	 	(a)  liens for taxes, assessments or governmental charges not then
    delinquent and liens for worker’s compensation awards and similar obligations not then delinquent and undetermined liens
    or charges incidental to construction, and liens for taxes, assessments or governmental charges then delinquent but the validity
    of which is being contested at the time by the Company in good faith as provided in Section 9.04 hereof;
	 	 	 
	 	 	(b)  any liens securing indebtedness, neither assumed nor guaranteed
    by the Company nor on which it customarily pays interest, existing upon real estate or rights in or relating to real estate
    acquired by the Company for substation, transmission line, transportation line, distribution line or right of way purposes;
	 	 	 
	 	 	(c)  rights reserved to or vested in any municipality or public authority
    by the terms of any right, power, franchise, grant, license or permit, or by any provision of law, to terminate such right,
    power, franchise, grant, license or permit or to purchase or recapture or to designate a purchaser of any of the property
    of the Company;
	 	 	 
	 	 	(d)  rights reserved to or vested in others to take or receive any
    part of the power, gas, oil or other minerals or timber generated, developed, manufactured or produced by, or grown on, or
    acquired with, any property of the Company;
	 	 	 
	 	 	(e)  easements, restrictions, exceptions or reservations in any property
    and/or rights of way of the Company for the purpose of roads, pipe lines, transmission lines, distribution lines, removal
    of coal or other minerals or timber, and other like purposes, or for the joint or common use of real property, rights of way,
    facilities and/or equipment, and defects, irregularities and deficiencies in titles of any property and/or rights of way,
    whether in effect at the time the Company acquired such property or right of way or thereafter created or suffered by the
    Company, which do not materially impair the use of such property and/or rights of way for the purposes for which such property
    and/or rights of way are held by the Company;

 

     

    	 	21	 

    

 

	§§1.06	 	 
	 	 	 
	(f)  rights reserved to or vested in any municipality or
    public authority to control or regulate any property of the Company, or to use such property in a manner which does not materially
    impair the use of such property for the purposes for which it is held by the Company;	 	 
	 	 	 
	(g)  any obligations or duties, affecting the property of the Company,
    to any municipality or public authority with respect to any franchise, grant, license or permit; and	 	 
	 	 	 
	(h)  any controls, liens, restrictions, regulations, easements, exceptions
    or reservations of any governmental authority applying to the property or facilities of the Company, including, without limiting
    the generality of the foregoing, those which apply particularly to Space Satellites.	 	 
	 	 	 
	The term “Qualified Lien” shall mean any mortgage or other lien
    (not included in the term Class “A” Mortgage nor in the term Excepted Encumbrances) prior to the Lien of
    this Indenture, existing at any particular time upon any Property Additions (so long as such Property Additions remain subject
    to the Lien hereof) then or theretofore made the basis under any of the provisions of this Indenture for one or more Authorized
    Purposes.	 	“Qualified Lien”
	 	 	 
	The term “Qualified Lien Bonds” shall mean bonds, obligations
    or other principal indebtedness secured by a Qualified Lien and payable in United States dollars.	 	“Qualified Lien Bonds”
	 	 	 
	The term “Outstanding” with respect to Qualified Lien Bonds
    shall mean as of any particular time all Qualified Lien Bonds theretofore authenticated and delivered by the trustee or other
    holder of the Qualified Lien securing the same and/or, if there be no such trustee or other holder, all Qualified Lien Bonds
    theretofore made and delivered by the maker (or his, her or its successor) of such Qualified Lien, except (A) Qualified
    Lien Bonds theretofore paid, retired, redeemed, discharged or cancelled, (B) Qualified Lien Bonds held hereunder, (C) Qualified
    Lien Bonds held by the trustee or other holder of a Qualified Lien (under conditions such that no transfer of ownership or
    possession of such Qualified Lien Bonds by the trustee or other holder of such Qualified Lien is permissible thereunder except
    upon a default thereunder or to the Trustee hereunder to be held subject to the provisions of Article X hereof or to
    the trustee or other holder of a Qualified Lien for cancellation or to be held	 	“Outstanding” (with respect to Qualified
    Lien Bonds)

 

     

    	 	22	 

    

 

	 	 	§§1.06, 1.07
	 	 	 
	 	 	uncancelled under the
    terms of a Qualified Lien under like conditions), (D) Qualified Lien Bonds for the purchase, payment or redemption of
    which moneys in the necessary amount shall have been deposited with or be held, with irrevocable direction so to apply, by
    the Trustee hereunder or by the trustee or other holder of a Qualified Lien; provided that, in the case of redemption, the
    notice required therefor shall have been given or have been provided for, and (E) Qualified Lien Bonds upon transfer
    of which or in exchange or substitution for and/or in lieu of which other Qualified Lien Bonds have been authenticated and
    delivered or made and delivered under any of the provisions of the Qualified Lien securing such Qualified Lien Bonds.
	 	 	 
	“Net Earning
    Certificate”	 	Section 1.07     The
    term “Net Earning Certificate” shall mean a certificate signed by an Authorized Executive Officer of the Company
    and an accountant, who unless required to be independent, may be an officer or employee of the Company, stating:
	 	 	 
	Adjusted Net Earnings	 	(A)  the
    Adjusted Net Earnings of the Company for a period of twelve (12) consecutive calendar months within the fifteen (15) calendar
    months immediately preceding the first day of the month in which the application for the authentication and delivery under
    this Indenture of bonds then applied for is made, specifying:
	 	 	 
	 	 	(1) 
    its operating revenues (which may include revenues of the Company subject when collected to possible refund at a future date)
    with the principal divisions thereof;
	 	 	 
	 	 	(2) 
    its operating expenses, with the principal divisions thereof, including, without limitation, all expenses and accruals for
    repairs and maintenance plus the lesser of (x) two per centum (2%) of the average amount for such period of twelve (12)
    consecutive calendar months in plant account representing depreciable property owned by the Company or (y) all appropriations
    out of income for property retirement in respect of all property owned by the Company;
	 	 	 
	 	 	(3) 
    the amount remaining after deducting the amount required to be stated in such certificate by clause (2) of this Section from
    the amount required to be stated therein by clause (1) of this Section;
	 	 	 
	 	 	(4) 
    its rental revenues (net) not otherwise included in such certificate;

 

     

    	 	23	 

    

 

	§1.07	 	 
	 	 	 
	(5) 
    the sum of the amounts required to be stated in such certificate by clauses (3) and (4) of this Section;	 	 
	 	 	 
	(6) 
    its other income (net);	 	 
	 	 	 
	(7) 
    the sum of the amounts required to be stated in such certificate by clauses (5) and (6) of this Section;	 	 
	 	 	 
	(8) 
    the amount, if any, by which the aggregate of (a) such other income (net) and (b) that portion of the amount required
    to be stated in such certificate by clause (5) of this Section which, in the opinion of the signers, is directly
    derived from the operations of property (other than paving, grading and other improvements to, under or upon public highways,
    bridges, parks or other public properties of analogous character) not subject to the Lien of this Indenture at the date of
    such certificate, exceeds fifteen per centum (15%) of the sum required to be stated by clause (7) of this Section; provided,
    however, if the amount required to be stated in such certificate by clause (5) of this Section includes revenues
    from the operation of property not subject to the Lien of this Indenture, there shall be included in the calculation to be
    made pursuant to this clause (8) such reasonable interdepartmental or interproperty revenues and expenses between the
    Mortgaged and Pledged Property and the property not subject to the Lien hereof as shall be allocated to such respective properties
    by the Company; and	 	 
	 	 	 
	(9) 
    the Adjusted Net Earnings of the Company for such period of twelve (12) consecutive calendar months (being the amount remaining
    after deducting in such certificate the amount required to be stated by clause (8) of this Section from the sum
    required to be stated by clause (7) of this Section);	 	 
	 	 	 
	(B) 
    the Annual Interest Requirements, being the interest requirements, if any, for twelve (12) months upon:	 	Annual Interest Requirements
	 	 	 
	(i) 
    all bonds Outstanding hereunder at the date of such certificate, except any for the payment of which the bonds applied for
    are to be issued; provided that, if any such series of Outstanding bonds bears interest at varying rates, then the interest
    on such series of bonds shall be computed at the current rate then in effect; and if such Outstanding bonds have been issued
    after the end of such twelve (12) consecutive calendar months, then computed at the initial rate upon issuance;	 	 

  

     

    	 	24	 

    

 

		 	§1.07
	 	 	 
	 	 	(ii)    all bonds then applied for in pending applications, including the application in connection with which such certificate is
    made, computed at the initial rate upon issuance;
	 	 	 
	 	 	(iii)   all
    Qualified Lien Bonds which will be Outstanding immediately after the authentication of the bonds then applied for in pending
    applications, including the application in connection with which such certificate is made; provided that, if any Qualified
    Lien Bonds bear interest at varying rates, then the interest on such Qualified Lien Bonds shall be computed at the current
    rate then in effect; and if such Qualified Lien Bonds have been issued after the end of such twelve consecutive calendar months,
    then computed at the initial rate upon issuance;
	 	 	 
	 	 	(iv)  all
    Class “A” Bonds Outstanding under Class “A” Mortgages at the date of such certificate, except
    any held hereunder and except any for the payment of which the bonds applied for are to be issued; provided that, if any Class “A”
    Bonds bear interest at varying rates, then the interest on such Class “A” Bonds shall be computed at the
    current rate then in effect; and, if Class “A” Bonds have been issued after the end of such twelve consecutive
    calendar months, then computed at the initial rate upon issuance; and
	 	 	 
	 	 	(v)  the principal amount of all other indebtedness (except Class “A” Bonds held hereunder and except indebtedness
    for the payment of which the bonds applied for are to be issued and indebtedness for the purchase, payment or redemption of
    which moneys in the necessary amount shall have been deposited with or be held by the Trustee or the trustee or other
    holder of a Qualified Lien or lien prior to the Lien of this Indenture upon property subject to the Lien of this Indenture
    with irrevocable direction so to apply the same; provided that, in the case of redemption, the notice required therefor
    shall have been given or have been provided), outstanding in the hands of the public on the date of such certificate and secured
    by lien prior to the Lien of this Indenture upon property subject to the Lien of this Indenture, if said indebtedness has
    been assumed by the Company or if the Company customarily pays the interest upon the principal thereof.

 

     

    	 	25	 

    

 

	§1.07	 	 
	 	 	 
	In
    calculating such Adjusted Net Earnings, all the Company’s expenses for taxes (other than income, profits and other taxes
    measured by, or dependent on, net income), assessments, rentals and insurance shall be included in its operating expenses,
    or otherwise deducted from its revenues and income; provided, however, that no expenses or provisions for interest on any
    of its indebtedness or for the amortization of debt discount, premium and expense, or loss on reacquired debt, amortization
    of property (other than depreciation or other similar provisions for property retirement), or for other amortization, or for
    any other extraordinary charge to income of whatever kind or nature, or for refunds of revenues previously collected by the
    Company subject to possible refund, or for any improvement or sinking fund or other device for the retirement of any indebtedness,
    shall be required to be included in operating expenses to be deducted from, or shall be otherwise required to be deducted
    from, its revenues or its other income and no extraordinary items of any kind or nature shall be included in calculating such
    Adjusted Net Earnings.	 	Calculation of operating
    expenses to be deducted
	 	 	 
	If
    any of the property of the Company owned by it at the time of the making of any Net Earning Certificate shall have been acquired
    during or after any period for which Adjusted Net Earnings of the Company are to be computed, the Adjusted Net Earnings of
    such property (computed in the manner in this Section provided for the computation of the Adjusted Net Earnings of the
    Company) during such period or such part of such period as shall have preceded the acquisition thereof, to the extent that
    the same have not otherwise been included and unless such property shall have been acquired in exchange or substitution for
    property the earnings of which have been included, may, at the option of the Company, be included in the Adjusted Net Earnings
    of the Company for all purposes of this Indenture, and shall be included if such property has been operated as a separate
    unit or if the earnings therefrom are readily ascertainable.	 	Adjusted Net Earnings
    of property acquired during or after earnings period
	 	 	 
	In
    any case where a Net Earning Certificate is required as a condition precedent to the authentication and delivery of bonds,
    such certificate shall also be made and signed by an independent public accountant, if the aggregate principal amount of bonds
    then applied for plus the aggregate principal amount of bonds authenticated and delivered hereunder since the commencement
    of the then current calendar year (other than those with respect to which a Net Earning Certificate is not required, or with respect
    to which a Net Earning Certificate made and	 	Requirement for independent public accountant

         

 

     

    	 	26	 

    

 

	 	 	§1.07; Art. II, §2.01
	 	 	 
	 	 	signed by an independent
    public accountant has previously been furnished to the Trustee) is ten per centum (10%) or more of the aggregate amount of
    the bonds at the time Outstanding; but no Net Earning Certificate need be made and signed by any person other than an Authorized
    Executive Officer of the Company and an accountant, as to dates or periods not covered by annual reports required to be filed
    by the Company, in the case of conditions precedent which depend upon a state of facts as of a date or dates or for a period
    or periods different from that required to be covered by such annual reports.
	 	 	 
	 	 	Each
    such certificate shall include the statements required by Section 22.05 hereof.
	 	 	 
	“appropriations out of income for property
    retirement”	 	The
    phrase “appropriations out of income for property retirement”, and other phrases of similar import shall be deemed
    to include not only charges made upon a retirement accounting theory but also charges made on any depreciation or other accounting
    theory intended to provide for retirement of property.
	 	 	 
	Calculations of Annual
    Interest Requirements of bonds if interest payable solely in foreign coin or currency	 	Unless
    otherwise specifically provided with respect to a series of bonds, if interest on any bonds Outstanding hereunder is payable
    solely in the coin or currency of a foreign nation, then the Annual Interest Requirements for such bonds shall be the Company’s
    United States dollar obligation therefor in the applicable currency exchange agreement required by subsection 2.03 (16) hereof
    or, if such exchange agreement is not in effect, then the Annual Interest Requirements for such bonds shall be based upon
    the Federal noon buying rate (on a date within 10 days prior to the date of the application for the authentication and delivery
    under this Indenture of bonds in connection with which such Net Earning Certificate is delivered) of such foreign coin or
    currency in The City of New York, New York (or, if no such noon buying rate is, after reasonable inquiry, determinable by
    the signers of such certificate, then such other rate as they shall reasonably determine).
	 	 	 
	 	 	Article II
	 	 	Forms, Execution,
    Registration, Exchange and
	 	 	Other General Provisions
    as to Issue of Bonds
	 	 	 
	Amount of bonds which
    may be secured hereby	 	Section 2.01     The
    aggregate principal amount of bonds which may be authenticated and delivered from time to time under this Indenture is unlimited.

 

     

    	 	27	 

    

 

	§§2.02,
    203	 	 
	 	 	 
	Section 2.02     Nothing
    in this Indenture shall limit the power of the Board of Directors (in conformity with applicable law) to fix the price at
    which the bonds authenticated and delivered under any of the provisions of this Indenture may be issued, exchanged, sold or
    disposed of, but any or all of said bonds may be issued, exchanged, sold or disposed of upon such terms and for such consideration
    as the Board of Directors may deem fit.	 	Board of Directors
    may fix terms and consideration for issue, etc. of bonds
	 	 	 
	Section 2.03     The
    bonds may be issued in one or more series pursuant to Articles IV, V, VI and VII hereof. Other than the First Series of
    bonds issued pursuant to Article III hereof, each such series of bonds, the form or forms thereof, the terms and conditions
    thereof, and the following other matters in connection therewith shall be established in or pursuant to one or more Resolutions
    and (to the extent not set forth in such Resolutions) detailed in an accompanying Officers’ Certificate (which shall
    also certify all actions taken pursuant to such Resolutions), and/or shall be established in one or more indentures supplemental
    hereto, prior to the initial issuance of bonds of such series:	 	Series of bonds and establishment
        thereof

         

         

        

         

         

         

         

        Matters to be established:

	 	 	 
	(1) 
    the title of the bonds and the series in which such bonds shall be included (which shall distinguish the bonds of the series
    from all other bonds);	 	(1) 	Title and series
	 	 	 
	(2) 
    any limit upon the aggregate principal amount of the bonds of that series which may be authenticated and delivered under this
    Indenture (except for bonds authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu
    of, other bonds of that series pursuant to Section 2.08, 2.09, 2.11, 2.12, 12.04 or 21.09 hereof);	 	(2) 	Limit on aggregate principal
    amount
	 	 	 
	(3) 
    the date or dates on which the principal of the bonds of that series is payable or the manner of determining the same;	 	(3) 	Maturity date or dates
	 	 	 
	(4) 
    the rate or rates at which the bonds of that series shall bear interest, if any, or the manner of determining the same, the
    date or dates from which such interest shall accrue, or the manner of determining the same, the date or dates on which such
    interest shall be payable and the date or dates for the determination of persons to whom interest shall be payable on any
    such date, and the basis upon which interest shall be calculated if other than that of a 360-day year of twelve 30-day months;	 	(4)	Interest rate or rates, etc.
	 	 	 
	(5) 
    the place or places where the principal of (and premium, if any) and interest, if any, on the bonds of that series shall be
    payable;	 	(5)	Place or places for payment

 

     

    	 	28	 

    

 

	(6) 	Optional redemption
    or prepayment	 	(6) 
    the period or periods within which, the price or prices at which and the terms and conditions upon which the bonds of that
    series may be redeemed or prepaid, in whole or in part, or the manner of determining the same, at the option of the Company;
	 	 	 
	(7)	Mandatory redemption,
    prepayment or purchase	 	(7) 
    the obligation, if any, of the Company to redeem, prepay or purchase bonds of that series pursuant to any mandatory redemption,
    sinking fund or analogous provisions or at the option of a holder thereof; and the period or periods within which, the price
    or prices at which and the terms and conditions upon which bonds of that series shall be redeemed, prepaid or purchased, in
    whole or in part, or the manner of determining the same, pursuant to such obligation;
	 	 	 
	(8) 	Denominations if not a
    multiple of $1,000	 	(8)  if other
    than denominations of $1,000 and any multiple thereof, the denominations in which the bonds of that series shall be issuable;
	 	 	 
	(9) 	Portion of series payable
    upon acceleration if other than principal amount	 	(9) 
    if other than the principal amount thereof, the portion of the principal amount of the bonds of that series which shall be
    payable upon declaration of acceleration of the maturity thereof pursuant to Section 15.03 hereof;
	 	 	 
	(10) 	Additional events of default	 	(10)  any event
    of default with respect to the bonds of that series if not set forth in Article XV hereof;
	 	 	 
	(11) 	Defeasance terms	 	(11) terms relating
    to the defeasance of bonds of that series, if any;
	 	 	 
	(12) 	Obligation of Company
    regarding payment without tax deduction and/or reimbursement; creation of sinking fund; conversion of bonds	 	(12)
    any obligation of the Company for the payment of the principal of the bonds of that series or the interest thereon, or both,
    without deduction for taxes and/or for the reimbursement of taxes in case of payment by the bondholders, it being agreed that
    such obligation may be limited to taxes imposed by any taxing authorities of a specified class and may exclude from its operation
    or be limited to any specified tax or taxes or any portion thereof; and/or expressing any obligation of the Company for the
    creation of a sinking fund or other analogous device for the bonds of that series; and/or expressing an obligation of the
    Company to permit the conversion of bonds of that series into capital stock of the Company or of any other corporation of
    any designated class or classes;
	 	 	 
	(13)
	Exchange privileges

         
	 	(13)
    any privilege of the bondholders of that series to make, at a specified place or places, any or all of the following exchanges,
    namely, exchanges of coupon bonds for fully registered bonds; exchanges of fully registered bonds for coupon bonds; exchanges
    of coupon bonds for coupon bonds of other authorized denominations; exchanges of fully registered bonds for fully registered
    bonds of

 

     

    	 	29	 

    

  

	§2.03	 	 
	 	 	 
	other authorized denominations;
    exchanges of bonds of one series for bonds of another series; and such privilege of exchange may in any case be made subject
    to such conditions, limitations or restrictions as the Board of Directors or officers of the Company pursuant to authority
    delegated by the Board of Directors may determine and the privilege of exchange may in any case be conferred upon the holders
    of bonds of one or more denominations and withheld from the holders of bonds of other denominations of the same series and
    may in any case be conferred on the holders of fully registered bonds and withheld from the holders of coupon bonds or vice
    versa;	 	 
	 	 	 
	(14)
    provisions acceptable to the Trustee for fully registered bonds of that series that may be registered as to the payment of
    principal to one holder and to the payment of interest to another holder, and for different rights of such holders with respect
    to redemption of such bonds, voting rights, remedies upon default and other matters;	 	(14) 	Splitting
    of interest and principal payments
	 	 	 
	(15)
    provisions for compliance with any law or with any rules or regulations made pursuant thereto or with the rules or
    regulations of any stock exchange or conforming to usage;	 	(15) 	Compliance with laws,
    rules, regulations or usage
	 	 	 
	(16)
    the coin or currency (which need not be coin or currency of the United States of America) in which the principal of and interest
    on such bonds shall be paid; provided, however, and notwithstanding any provision in this Indenture to the contrary, no bonds
    shall be issued hereunder which the Company shall be required to pay in a coin or currency other than that of the United States
    of America unless the Company shall have deposited with the Trustee, to be held as part of the Mortgaged and Pledged Property,
    a currency exchange agreement with an entity having, at the time of such deposit, at least as good financial rating as that
    of the Company that, in the opinion of an independent accountant, appraiser or other expert as certified in writing to the
    Trustee, gives the Company at least as much protection against currency exchange fluctuation as is usually obtained by similarly
    situated borrowers;	 	(16) 	Coin or currency in which
    principal and interest paid; currency exchange agreement
	 	 	 
	(For
    purposes of calculations under this Indenture (including calculations of principal amount under Articles IV, V, VI and VII),
    the principal amount of any bonds Outstanding hereunder payable in a foreign coin or currency shall be the Company’s
    United States dollar obligation therefor in the applicable currency exchange agreement entered into pursuant to the foregoing
    subsection (16).	 	Calculation of principal of bonds payable
        in foreign coin or currency

         

 

     

    	 	30	 

    

 

	 	 	§§2.03, 2.04, 2.05, 2.06
	 	 	 
	(17) 	Uncertificated system
    of registration	 	(17)  any uncertificated system of registration utilized for the bonds of that series; and/or
	 	 	 
	(18) 	Other terms	 	(18)  any other terms of the bonds of that series (which terms shall not be inconsistent with the provisions of this Indenture).
	 	 	 
	Bonds of same series substantially
        identical

         

        Bonds of same series may be issued at
        different times; series may be reopened and aggregate principal amount increased 
	 	All
    bonds of any one series shall be substantially identical except as otherwise established in accordance with this Section 2.03.
    All bonds of any one series need not be issued at the same time, and, unless otherwise established in accordance with this
    Section 2.03, a series may be reopened and the aggregate principal amount of bonds of that series which may be authenticated
    and delivered under this Indenture increased for issuances of additional bonds of that series.
	 	 	 
	Bonds and
    coupons expressed in one or more foreign languages	 	Section 2.04     The
    bonds and coupons of any series may be expressed in one or more foreign languages, if also expressed in the English language.
    The English text shall govern the construction thereof and both or all texts shall constitute but a single obligation.
	 	 	 
	Kinds and
    denominations of bonds	 	Section 2.05     Any
    series of bonds may be executed, authenticated and delivered originally as coupon bonds and/or as fully registered bonds in
    such denomination or denominations as established in accordance with Section 2.03 with respect to a series of bonds.
	 	 	 
	Dates, interest, etc.
    of registered bonds	 	Section 2.06     Unless
    otherwise established in accordance with Section 2.03 with respect to a series of bonds, fully registered bonds shall
    be dated as of the date of authentication. Unless other provisions (including, but not limited to, provisions establishing
    record dates for the payment of interest) are specifically provided with respect to a series of bonds, fully registered bonds
    shall bear interest from the beginning of the current interest period for that series; provided, however, that if any fully
    registered bond shall be authenticated and delivered upon a transfer of, or in exchange for or in lieu of, any bond or bonds
    upon which interest is in default, it shall bear interest from the last preceding date to which interest shall have been paid
    on the bond or bonds in respect of which such fully registered bond shall have been delivered, unless otherwise specifically
    provided as aforesaid with respect to a series of bonds.
	 	 	 
	 	 	Coupon
    bonds shall be dated as of such date as may be established in accordance with Section 2.03 with respect to a series of
    bonds and as designated in the form established for such series of coupon bonds.

 

     

    	 	31	 

    

 

	§§2.07,
    2.08	 	 
	 	 	 
	Section 2.07     Any
    bond may have imprinted thereon or included therein any legend or legends required in order to comply with any law or with
    any rules or regulations made pursuant thereto or with the rules or regulations of any stock exchange or to conform
    to usage, and the Board of Directors by Resolution may at any time amend the form of any legend to be used on bonds then Outstanding
    so as to comply with any such law, rule or regulation, or so as to conform to usage.	 	Legends on bonds
	 	 	 
	Section 2.08     Unless
    otherwise established in accordance with Section 2.03 with respect to a series of bonds, in all cases in which the privilege
    of exchanging bonds exists and is exercised, the bonds to be exchanged shall be surrendered at such place or places as shall
    be designated by the Board of Directors by Resolution for that purpose, with all unmatured coupons appertaining thereto (in
    the case of coupon bonds) and the Trustee shall authenticate and the Company shall deliver in exchange therefor the bond or
    bonds which the bondholder making the exchange shall be entitled to receive, having attached thereto, in the case of coupon
    bonds, all unmatured coupons appertaining thereto. In case at the time of any such exchange, interest on the bonds of such
    series is in default, all coupon bonds of such series surrendered for exchange and delivered in exchange shall be accompanied
    by all matured coupons in default unless such coupons have heretofore been previously surrendered. All bonds so surrendered
    for exchange shall be in bearer form, or if registered, accompanied by a written instrument or instruments of transfer wherever
    required by the Company duly executed by the registered owner or his, her or its duly authorized attorney. All bonds so surrendered
    for exchange and the coupons appertaining thereto shall be cancelled by the Trustee. Upon any transfer of bonds as permitted
    by the next succeeding Section, and upon any exchange of bonds, the Company may make a charge therefor sufficient to reimburse
    it for any tax or taxes or other governmental charge and in addition may charge a sum not exceeding a sum, if any, provided
    as a term of such series of bonds for each bond authenticated and delivered upon any such transfer or exchange, which sum
    shall be paid by the party requesting such transfer or exchange as a condition precedent to the exercise of the privilege
    of making such transfer or exchange. The Company shall not be required to make transfers or exchanges of bonds of any series
    for a period of fifteen (15) days next preceding any interest payment date of said series (unless such series has a record
    date for the payment of interest), or next preceding any designation of bonds of said series to be	 	Surrender
        and cancellation of bonds upon exchange

         

         

         

        

         

        Authentication
        and delivery of bonds

         

         

         

         

         

         

         

         

         

         

         

        Charges

         

         

 

     

    	 	32	 

    

 

	 	 	§§2.08, 2.09, 2.10
	 	 	 
	 	 	redeemed. The Company
    shall not be required to make transfers or exchanges of any bonds designated in whole or in part for redemption.
	 	 	 
	Books for registration and transfer
        of bonds

         

         

         

         

        Registration of coupon bonds 

         

        Transfer of fully registered bonds

         

         

         

        Cancellation of registered bonds
	 	Section 2.09     The
    Company shall keep, at such place or places as shall be designated for the purpose, books for the registration and transfer
    of bonds issued hereunder, which, at all reasonable times, shall be open for inspection by the Trustee; and upon presentation
    of bonds duly endorsed for such purpose at any such place or places, the Company will register or cause to be registered therein,
    and permit to be transferred thereon, under such reasonable regulations as it may prescribe, any bonds issued under this Indenture
    and entitled to registration or transfer at such office. Upon the registration of any coupon bond as to principal, the fact
    of such registration shall be noted on such bond. Upon the transfer of any fully registered bond, the Trustee shall authenticate
    and the Company shall issue in the name of the transferee or transferees a new fully registered bond or new fully registered
    bonds of the same series for a like principal amount in authorized denominations. All fully registered bonds so surrendered
    for transfer shall be cancelled by the Trustee.
	 	 	 
	Execution of bonds

         

         

         

         

         

        Execution by former officers

         

         

         

         

         

        

         

        

        Matured coupons may be detached before authentication of
        bonds
	 	Section 2.10     All
    bonds authenticated and delivered hereunder shall, from time to time, be executed on behalf of the Company by an Authorized
    Executive Officer of the Company, whose signature may be facsimile, and its corporate seal shall be thereon impressed or imprinted
    and attested by its Secretary or one of its Assistant Secretaries, whose signature may be facsimile. The coupons to be attached
    to coupon bonds shall bear the facsimile signature of an Authorized Financial Officer of the Company. In case any of the officers
    who shall have signed any bonds or attested the seal thereon, or whose facsimile signature appears on any coupon, shall cease
    to be such officers of the Company before the bonds so signed and/or sealed shall have been actually authenticated and delivered
    by the Trustee or issued by the Company, such bonds nevertheless may be authenticated, delivered and/or issued with the same
    force and effect as though the person or persons who signed such bonds and/or attested the seal thereon and/or whose facsimile
    signature appears on any coupon had not ceased to be such officer or officers of the Company. Before authenticating any coupon
    bonds, the Trustee shall cut off and cancel all matured coupons thereto attached (except as otherwise provided or permitted
    in Sections 2.08 and 2.12 hereof).

 

     

    	 	33	 

    

 

	§§2.11,
    2.12	 	 
	 	 	 
	Section 2.11     There
    may be authenticated and delivered and issued from time to time in lieu of (or in exchange for) any definitive bond or bonds
    issued or issuable under this Indenture one or more temporary bonds substantially of the tenor of the bonds hereinbefore established,
    with or without one or more coupons, and with or without the privilege of registration as to principal only, or as to both
    principal and interest, and such temporary bond or bonds may be in such denomination or denominations as the Board of Directors
    may determine. Until a definitive bond or bonds secured hereby are delivered in exchange therefor, each such temporary bond
    or bonds shall be entitled to the Lien and benefit of this Indenture. Upon the exchange by the Company of definitive coupon
    bonds or definitive fully registered bonds for temporary bonds (which exchange the Company shall make on request of, and without
    charge to, the holder, when definitive bonds are ready for delivery) such temporary bond or bonds and any unmatured coupons
    appertaining thereto shall be cancelled by the Trustee. When and as interest is paid upon presentation of any unregistered
    temporary bond without coupons, the fact of such payment shall be noted by the Trustee or a paying agent thereon and interest
    due on any temporary bond which is represented by a coupon shall be paid only upon presentation and surrender of such coupon
    for cancellation. Unregistered temporary bonds without coupons of any series shall bear interest from the beginning of the
    current interest period for bonds of that series in which such unregistered temporary bonds without coupons shall be authenticated.	 	Temporary bonds may be issued

         

         

         

         

         

         

         

        

         

        Temporary bonds are secured hereby

         

         

        Cancellation of temporary bonds

        

        

         

        Payment of interest on unregistered
        temporary bonds

	 	 	 
	Section 2.12     Upon
    receipt by the Company and the Trustee of evidence satisfactory to them of the theft, loss, destruction or mutilation of any
    bond Outstanding hereunder and/or the coupons appertaining thereto, and of indemnity satisfactory to them, and upon payment,
    if the Company or the Trustee shall require it, of a reasonable charge and upon reimbursement to the Company and the Trustee
    of all reasonable expense incident thereto, and upon surrender and cancellation of such bond, if mutilated, and the coupons
    appertaining thereto, if any, the Company may execute, and the Trustee shall thereupon authenticate and deliver, a new bond
    of like tenor and of the same series with all unpaid coupons, if any, appertaining thereto in lieu of such stolen, lost, destroyed
    or mutilated bond and coupons, if any, or if any such bond or any coupon shall have matured or be about to mature, and upon
    the holder’s compliance with the provisions of this Section, the Company may pay the same without surrender thereof
    instead of issuing a substituted bond or coupon. Any indemnity bond shall name as obligees the Company, the Trustee, and,
    if requested by the Company, any paying agent.	 	Bonds issuable to replace
    stolen, lost, destroyed or mutilated bonds

 

     

    	 	34	 

    

 

	 	 	§2.13;
    Art. III, §3.01
	 	 	 
	Trustee’s certificate	 	Section 2.13     No
    bond shall be secured hereby unless there shall be endorsed thereon the certificate of the Trustee that it is one of the bonds
    (or temporary bonds) of the series therein designated, herein provided for; and such certificate on any such bond shall be
    conclusive evidence that such bond has been duly authenticated and delivered by the Trustee.
	 	 	 
	 	 	Article III
	 	 	First
    Series of Bonds
	 	 	 
	Bonds of the First Series

         

        

         

         

         

        Date of Maturity

        

         

        Interest Rate

         

          

         

         

        Date of issue 
	 	Section 3.01     There
    shall be a series of bonds in the principal amount of $500,000 designated “10.45% Series due January 9, 1990”
    (herein sometimes referred to as the “First Series”), each of which shall also bear the descriptive title “First
    Mortgage and Collateral Trust Bond”. The form, terms and conditions thereof shall be established in or pursuant to a
    Resolution. Bonds of the First Series shall mature on January 9, 1990, and shall be issued as fully registered bonds;
    they shall bear interest at the rate of ten and forty-five hundredths per centum (10.45%) per annum, payable on July 9,
    1989 and at maturity; the principal of and interest on each said bond to be payable at the office or agency of the Company
    in the Borough of Manhattan, The City of New York, New York, in such coin or currency of the United States of America as at
    the time of payment is legal tender for public and private debts. Bonds of the First Series shall be dated as in Article II
    hereof provided.
	 	 	 
	Redemption	 	(I)  Bonds of
    the First Series shall not be redeemable prior to maturity.
	 	 	 
	Exchangeability	 	(II) 
    At the option of the registered owner, any bonds of the First Series, upon surrender thereof for cancellation, at the office
    or agency of the Company in the Borough of Manhattan, The City of New York, New York, shall (subject to the provisions of
    Article II hereof) be exchangeable for a like aggregate principal amount of bonds of the same series of other authorized
    denominations.
	 	 	 
	 	 	(III) 
    Bonds of the First Series in the aggregate principal amount of Five Hundred Thousand Dollars ($500,000) shall be executed
    by the Company and delivered to the Trustee and shall be authenticated by the Trustee, and delivered (whether before or after
    the filing or recording hereof), in accordance with the written order or orders of the Company signed by an Authorized Executive
    Officer of the Company, and by its Secretary or an Assistant Secretary or an Authorized Financial Officer of the Company.

 

     

    	 	35	 

    

 

	Art. IV, §4.01	 	 
	 	 	 
	Article IV	 	 
	Issuance of Bonds
    upon Deposit of	 	 
	Class “A”
    Bonds with Trustee	 	 
	 	 	 
	Section 4.01     (I) 
    The Trustee shall, from time to time, upon the written order or orders of the Company signed by an Authorized Executive Officer
    of the Company, and by its Secretary or an Assistant Secretary or an Authorized Financial Officer of the Company, authenticate
    and deliver bonds hereunder of one or more series of a principal amount not exceeding the principal amount of Class “A”
    Bonds delivered to the Trustee hereunder and maturing on the maturity date of the bonds being issued hereunder on the basis
    of such Class “A” Bonds, but only after the Trustee shall have received the following:	 	Bonds issuable on basis of Class “A”
        Bonds

         

         

         

        

        

         

        Requirements

	 	 	 
	(1) 
    the Resolution provided for in subdivision (1) of Section 5.06 hereof;	 	(1) 	Resolution
	 	 	 
	(2) 
    the Officers’ Certificate provided for in subdivision (2) of Section 5.06 hereof and, in the case of bonds
    being issued to refund bonds issued hereunder, in Section 11.05 hereof;	 	(2) 	Officers’ Certificate
	 	 	 
	(3) 
    subject to the provisions of subdivision (II) of this Section 4.01, a Net Earning Certificate showing the Adjusted
    Net Earnings of the Company to be as required by Section 5.05 hereof;	 	(3) 	Net Earning Certificate
	 	 	 
	(4) 
    the Opinion of Counsel provided for in subdivision (8) of Section 5.06, and stating the signer’s opinion to
    the effect that the Class “A” Bonds being made the basis for the authentication and delivery of the bonds
    then applied for are legal, valid and binding obligations of the Company enforceable in accordance with their terms, except
    as limited by bankruptcy, insolvency, reorganization, moratorium or other laws affecting the enforcement of mortgagees’
    and other creditors’ rights and by general equitable principles (regardless of whether such enforceability is considered
    in a proceeding in equity or at law), and such Class “A” Bonds are entitled to the benefit of the security
    afforded by the corresponding Class “A” Mortgage;	 	(4) 	Opinion of Counsel
	 	 	 
	(5) 
    copies of the certificates, or other documents, if any, specified in the Opinion of Counsel provided for in subdivision (4) of
    this Section; and	 	(5) 	Further certificates, etc.
	 	 	 
	(6) 
    the Class “A” Bonds being made the basis for the authentication and delivery of the bonds then applied for
    (whether then or theretofore delivered to the Trustee).	 	(6) 	Deposit of Class “A”
    Bonds

 

     

    	 	36	 

    

 

	 	 	§4.01
	 	 	 
	 	 	Class “A”
    Bonds delivered to the Trustee pursuant to the provisions of this Section 4.01 need not contain identical or similar
    terms as to interest rates, redemption rights or other terms (other than maturity dates) as the bonds being issued hereunder
    on the basis of such Class “A” bonds.
	 	 	 
	 	 	Class “A”
    Bonds delivered to the Trustee pursuant to the provisions of this Section 4.01 shall be held by the Trustee in accordance
    with the provisions of Article X hereof.
	 	 	 
	Conditions when no Net
    Earning Certificate required	 	(II) 
    No Net Earning Certificate shall be required if an Officers’ Certificate is delivered, making the statements provided
    for in Section 11.05 hereof relating to the authentication and delivery of the bonds then being requested in the written
    order or orders of the Company under this Section 4.01 and indicating that no Net Earning Certificate is required hereunder
    pursuant to this subsection 4.01(II), unless one of the following conditions exists:
	 	 	 
	 	 	(i) 
    an application for the authentication and delivery of bonds under any of the provisions of this Indenture, which shall have
    contained a Net Earning Certificate, shall have been made to the Trustee subsequent to the delivery to the trustee of a Class “A”
    Mortgage of an irrevocable direction to apply moneys to the purchase, payment, retirement and/or redemption of, or subsequent
    to the cancellation or surrender for cancellation of, any Class “A” Bonds on the basis of which other Class “A”
    Bonds are to be authenticated and delivered pursuant to the provisions of Section 29 of the Pacific Mortgage or Section 29
    of the Utah Mortgage (as the case may be), as then in effect, or pursuant to the corresponding provisions of another Class “A”
    Mortgage, and in such Net Earning Certificate the Annual Interest Requirements on the bonds to be authenticated and delivered
    pursuant to the provisions of this Section 4.01 shall not have been included, or
	 	 	 
	 	 	(ii) 
    the Class “A” Bonds on the basis of which other Class “A” Bonds are to be authenticated
    and delivered mature by their terms at a date more than two years after the date of authentication and delivery of the bonds
    applied for pursuant to this Section 4.01 and bear a lower interest rate than the bonds applied for,
	 	 	 
	 	 	in either of which
    cases the Trustee shall receive a Net Earning Certificate showing the Adjusted Net Earnings to be as required by Section 5.05
    hereof.

 

     

    	 	37	 

    

 

	 Art.
    V, §§5.01, 5.02, 5.03, 5.04	 	 
	 	 	 
	Article V	 	 
	Issuance of Bonds
    on the Basis of Property Additions	 	 
	 	 	 
	Section 5.01     The
    Trustee shall, from time to time, upon the written order or orders of the Company signed by an Authorized Executive Officer
    of the Company, and by its Secretary or an Assistant Secretary or an Authorized Financial Officer of the Company, authenticate
    and deliver bonds hereunder of one or more series upon the basis of Property Additions, but only in accordance with and subject
    to the conditions, provisions and limitations set forth in this Article V.	 	Bonds issuable on basis
    of Property Additions
	 	 	 
	Section 5.02     No
    bonds shall be authenticated and delivered at any time under the provisions of this Article V, upon the basis of Funded
    Property.	 	No Bonds issuable on basis
    of Funded Property
	 	 	 
	Section 5.03     Bonds
    of any one or more series may be authenticated and delivered under the provisions of this Article V upon the basis of
    Property Additions for a principal amount not exceeding seventy per centum (70%) of the balance of the Cost or of the fair
    value thereof to the Company (whichever shall be less) after making any deductions and any additions pursuant to Section 1.04
    hereof.	 	Cost or fair value of
    Property Additions as limiting amount of bonds issuable
	 	 	 
	Section 5.04     In
    all cases in which it shall appear, from the Engineer’s Certificate hereinafter in Section 5.06 hereof provided
    for, that Property Additions proposed to be made the basis of one or more Authorized Purposes are subject to a Qualified Lien,
    the principal amount of the then Outstanding Qualified Lien Bonds secured by a Qualified Lien thereon (in the case of the
    authentication and delivery of bonds under the provisions of this Article V or the withdrawal of cash under Section 7.02
    hereof) or ten-sevenths (10/7ths) of such principal amount (in the case of the release of property under any provisions hereof
    or the withdrawal of cash under Section 13.06 hereof) shall be deducted from the principal amount of bonds which
    might otherwise be authenticated or from the amount of cash which might otherwise be withdrawn or from the fair value of property
    which might otherwise be released or from the amount for which the Company might otherwise be entitled to a credit, unless
    such certificate shall also state that the required amount has theretofore been deducted pursuant to the provisions
    of this Section when other Property Additions subject to such Qualified Lien have theretofore been made the basis under
    any of the provisions of this Indenture of one or more Authorized Purposes, and that since the date of such deduction	 	Issuance of bonds on basis
    of Property Additions subject to Qualified Lien

 

     

    	 	38	 

    

 

	 	 	§5.04
	 	 	 
	 	 	property subject to
    the Lien of this Indenture has continued to be subject to such Qualified Lien.
	 	 	 
	Refunding of Qualified
    Lien Bonds	 	If,
    at any time after an amount equal to the principal amount of any Outstanding Qualified Lien Bonds shall have been, in accordance
    with the provisions of this Section, deducted from the principal amount of bonds which might otherwise be authenticated and
    delivered hereunder, or the required principal amount shall have been deducted in connection with the withdrawal of cash or
    the release of property, the Company shall either:
	 	 	 
	 	 	(A) 
    deposit with the Trustee any such principal amount of Qualified Lien Bonds to be held and dealt with by the Trustee in the
    manner and subject to the conditions and provisions set forth in Article X hereof; or
	 	 	 
	 	 	(B) 
    file with the Trustee an Officers’ Certificate to the effect that the principal amount of such Outstanding Qualified
    Lien Bonds to the extent of the principal amount deducted as aforesaid, (1) has been reduced, or concurrently with the
    action requested will be reduced, by payment, or by the irrevocable deposit with the trustee or other holder of the Qualified
    Lien securing the same, of moneys in the necessary amount for the purchase, payment or redemption thereof, or otherwise reduced,
    and that such reduction has not been, and will not be, effected by the use, by the trustee or other holder of such Qualified
    Lien, of cash which (after giving effect to the provisions of Sections 1.05 and 13.06 hereof) is then deemed to be or to have
    been Funded Cash; provided that, in the case of redemption, the notice required therefor shall have been given or have been
    provided for, or (2) has been ascertained by final judicial determination or otherwise to the satisfaction of the Trustee
    to be in whole or in part invalid, and specifying the amount of reduction or the extent of the invalidity, as the case may
    be, supported by an Opinion of Counsel;
	 	 	 
	 	 	then, and in either
    such case, the Company shall be entitled to the authentication and delivery of further bonds up to a principal amount equivalent
    to and on the basis of the principal amount of the Qualified Lien Bonds so deposited with the Trustee, or (as the case may
    be) equivalent to and on the basis of the amount by which the principal amount of such Qualified Lien Bonds shall be certified
    to have been and/or to be reduced or to have been ascertained to be invalid, but not exceeding in the aggregate a principal
    amount equivalent to the aggregate of the

 

     

    	 	39	 

    

 

	§5.04	 	 
	 	 	 
	respective principal
    amounts of Qualified Lien Bonds Outstanding under each respective Qualified Lien immediately after such lien shall have become
    a Qualified Lien and in respect of which bonds the deductions required by the provisions of this Section shall have been
    made.	 	 
	 	 	 
	Notwithstanding
    any other provisions herein contained, it shall not be necessary to comply with the provisions of Section 5.05 hereof
    or to furnish any Net Earning Certificate in connection with the authentication and delivery of bonds under the foregoing
    provisions of this Section unless the Qualified Lien Bonds on the basis of which bonds are to be so authenticated and
    delivered, mature by their terms at a date more than two years after the authentication and delivery of the bonds applied
    for and bear a lower interest rate than the bonds applied for.	 	 
	 	 	 
	No
    bonds shall be authenticated and delivered under the provisions of this Section by reason of the deposit of any Qualified
    Lien Bonds or the payment, reduction or ascertainment of invalidity thereof to the extent that such deposit or payment, reduction
    or ascertainment of invalidity shall theretofore have been used as a basis, under the provisions of this Section, of the authentication
    and delivery of bonds or to the extent that a waiver by the Company of its right to the authentication and delivery of bonds
    on the basis of any such deposit, payment, reduction or ascertainment of invalidity is then in effect, or by reason of the
    deposit of any Qualified Lien Bonds with respect to which deposit the Company shall have certified that it elects not to have
    any bonds authenticated hereunder on the basis thereof, or by reason of the deposit of any Qualified Lien Bonds with the Trustee
    under the provisions of Section 9.13 hereof.	 	Limit on bond authentication
    based on property subject to Qualified Lien
	 	 	 
	No
    bonds shall be authenticated and delivered under the provisions of this Article V (nor Funded Cash be withdrawn nor Funded
    Property be released under any of the provisions of this Indenture) upon the basis of any Property Additions subject to a
    Qualified Lien unless it shall be stated in an Engineer’s Certificate accompanying the application that:	 	Additional limit on bond
    authentication based on property subject to Qualified Lien
	 	 	 
	(a) 
    the principal amount of all bonds theretofore authenticated and delivered by the Trustee (including any bonds for the authentication
    and delivery of which application is then made) under the provisions of this Article V upon the basis of such Property
    Additions subject to a Qualified Lien as shall have continued to be subject to a Qualified Lien or upon the basis of a reduction
    in the principal amount of Outstanding Qualified Lien Bonds on such Property Additions as shall have continued to be subject
    to a Qualified Lien,	 	 

 

     

    	 	40	 

    

 

	 	 	§5.04
	 	 	 
	 	 	(b) 
    the total amount of Funded Cash deposited with the Trustee under the provisions of Section 7.01 hereof and theretofore
    withdrawn (including any such Funded Cash for the withdrawal of which application is then made) under any of the provisions
    of this Indenture upon the basis of such Property Additions subject to a Qualified Lien as shall have continued to be subject
    to a Qualified Lien,
	 	 	 
	 	 	(c) 
    seventy per centum (70%) of all Funded Cash deposited with the Trustee under any of the provisions of this Indenture (other
    than the provisions of Section 7.01 hereof) and theretofore withdrawn (including any such Funded Cash for the withdrawal
    of which application is then made) under any of the provisions of this Indenture upon the basis of such Property Additions
    subject to a Qualified Lien as shall have continued to be subject to a Qualified Lien,
	 	 	 
	 	 	(d) 
    seventy per centum (70%) of the Cost or the fair value to the Company, whichever is less (at the date of the Engineer’s
    Certificate in which such Property Additions shall have been made the basis of the release hereinafter in this clause (d) mentioned),
    of such Property Additions subject to a Qualified Lien as shall have continued to be subject to a Qualified Lien, used as
    a basis for the release from the Lien of this Indenture of Funded Property, and
	 	 	 
	 	 	(e) 
    the principal amount of all Qualified Lien Bonds to be Outstanding upon the granting of such application,
	 	 	 
	 	 	do not in the aggregate
    exceed fifteen per centum (15%) of the aggregate principal amount of (1) all bonds to be Outstanding under this Indenture
    upon the granting of such application, including those applied for, and (2) all Qualified Lien Bonds to the extent that
    such Qualified Lien Bonds shall be Outstanding upon the granting of such application.
	 	 	 
	 	 	Subject
    to the provisions of Sections 19.01 and 19.02 hereof, the Trustee may assume that any Property Additions subject to a Qualified
    Lien which shall have formed the basis, under any of the provisions of this Indenture, for the authentication and delivery
    of bonds or the withdrawal of Funded Cash or the release of Funded Property have continued to be subject to a Qualified Lien
    until the Trustee shall have received an Officers’ Certificate (accompanied by a concurring Opinion of Counsel) to the
    contrary.

 

     

    	 	41	 

    

 

	§§5.04,
    5.05, 5.06	 	 
	 	 	 
	If
    at any time and from time to time, by reason either of the discharge of any Qualified Lien or of any increase in the aggregate
    amount of bonds authenticated and delivered under this Indenture, there shall be a change in the aggregate principal amount
    of bonds which may be authenticated and delivered within the limitations prescribed by this Section, then any bonds, which
    before such change were not permitted to have been authenticated and delivered by reason of such limitations, may be authenticated
    and delivered subject to such limitations as fixed by such change.	 	 
	 	 	 
	No
    bonds shall be authenticated and delivered under the provisions of this Section unless the Trustee at the time of the
    application for such authentication and delivery shall receive a Resolution, Officers’ Certificate and Opinion of Counsel
    such as are described in subdivisions (1), (2) and (8) of Section 5.06 hereof, together with copies of the
    officially authenticated certificates or other documents, if any, specified in such Opinion of Counsel, and, in case the bonds
    are to be authenticated and delivered under the provisions of the next preceding paragraphs of this Section by reason
    of an increase in the aggregate principal amount of bonds authenticated and delivered under this Indenture having increased
    the aggregate principal amount of bonds which may be authenticated and delivered within the limitations prescribed by this
    Section, a Net Earning Certificate showing the Adjusted Net Earnings of the Company to be as required by Section 5.05
    hereof.	 	Documents
    received by Trustee
	 	 	 
	Section 5.05     No
    bonds other than the bonds of the First Series (as set forth in Article III hereof) shall be authenticated and delivered
    upon the basis of Property Additions unless, as shown by a Net Earning Certificate, the Adjusted Net Earnings of the Company
    for the period therein referred to shall have been in the aggregate at least equivalent to twice the Annual Interest Requirements
    as shall be specified, pursuant to the provisions of subdivision (B) of Section 1.07 hereof, in such Net Earning
    Certificate. No Net Earning Certificate is required as to the authentication and delivery of said bonds of the First Series.	 	Requirements
    as to net earnings
	 	 	 
	Section 5.06     No
    bonds shall be authenticated or delivered hereunder by the Trustee upon the basis of Property Additions until the Trustee
    shall have received the following:	 	Requirements
    for issuance of bonds upon basis of Property Additions:
	 	 	 
	(1) 
    a Resolution requesting the Trustee to authenticate and deliver bonds, (a) specifying the principal amount of bonds called
    for and the series thereof, (b) specifying or setting forth a method by	 	(1)	Resolution

 

     

    	 	42	 

    

 

	 	 	§5.06
	 	 	 
	 	 	which all other matters
    with respect thereto as required by this Indenture (including those terms and conditions described in Section 2.03 hereof)
    are to be established, and (c) specifying the officer or officers of the Company to whom, or upon whose written order,
    such bonds shall be delivered;
	 	 	 
	(1)
    Officers’ Certificate	 	(2) 
    an Officers’ Certificate complying with the requirements of Section 22.05 hereof (a) detailing the matters
    required to be set forth therein as provided in Section 2.03 hereof, and (b) stating that to the knowledge of the
    signers none of the events which itself or with a lapse of time would constitute a Default of the type specified in subdivisions
    (a) through (h) of Section 15.01 hereof has occurred and is continuing;
	 	 	 
	(2)
    Engineer’s Certificate	 	(3) 
        an Engineer’s Certificate made and dated not more than ninety (90) days prior to the date of such application,

         

        (a) 
        describing in reasonable detail the Property Additions made the basis of the application;

         

        (b) 
        stating that all the Property Additions made the basis of the application are Property Additions as defined in Section 1.04
        hereof;

         

        (c) 
        stating that such Property Additions are desirable for use in the proper conduct of the business of the Company;

         

        (d) 
        stating that such Property Additions, to the extent of the Cost or fair value thereof (whichever is less) to the Company
        made the basis of the application, do not consist of Funded Property;

         

        (e) 
        stating, except as to Property Additions acquired, made or constructed wholly through the delivery of securities, that
        the amount of cash forming all or part of the Cost thereof was equal to or more than an amount to be stated therein;

         

        (f) 
        briefly describing, with respect to any Property Additions acquired, made or constructed in whole or in part through the
        delivery of securities, the securities so delivered and stating the date of such delivery;

         

        (g) 
        stating what part, if any, of such Property Additions includes property (other than property acquired from PacifiCorp,
        a Maine corporation, and from Utah Power & Light Company, a Utah corporation, upon the merger of those corporations
        into

 

     

    	 	43	 

    

 

	§5.06	 	 
	 	 	 
	the
        Company) which within six months prior to the date of acquisition thereof by the Company has been used or operated by
        others than the Company in a business similar to that in which it has been or is to be used or operated by the Company
        and showing whether or not the fair value thereof to the Company is less than Twenty-five Thousand Dollars ($25,000) and
        whether or not the fair value thereof to the Company is less than one per centum (1%) of the aggregate amount of (x) the
        principal amount of the bonds at the time Outstanding and (y) the principal amount of the Class A Bonds at the
        time Outstanding other than Class A Bonds delivered to and held by the Trustee hereunder;

         

        (h) 
        stating, except as to Property Additions with respect to the fair value to the Company of which a statement is to be made
        in an Independent Engineer’s Certificate as provided for in subdivision (4) of this Section, that the fair
        value to the Company as of the date of such certificate of such Property Additions is a specified amount;

         

        (i) 
        stating the amount required to be deducted under the provisions of subdivision (A) of Section 1.04 hereof and
        the amount elected to be added under the provisions of clauses (a), (b) and (c) of subdivision (B) of Section 1.04
        hereof in respect of Funded Property retired of the Company;

         

        (j) 
        stating whether or not the required amount has theretofore been deducted in compliance with the provisions of Section 5.04
        hereof when other Property Additions subject to a Qualified Lien, referred to in the Opinion of Counsel provided for in
        subdivision (7) of this Section, were made the basis under any of the provisions of this Indenture of one or more
        Authorized Purposes and, if so, when such deduction was made and whether since the date of such deduction property subject
        to the Lien of this Indenture has continued to be subject to such Qualified Lien;

         

        (k) 
        making such statements, if any, as may be required to be stated in an Engineer’s Certificate by the provisions of
        Section 5.04 hereof; and

         

        (l) 
        stating that the easements, restrictions, exceptions, reservations or rights, if any, of the character mentioned in clauses
        (e) and (f) of Section 1.06 hereof, to which any property or rights of way included in such Property Additions
        are subject,
	 	 

 

     

    	 	44	 

    

 

	 	 	§5.06
	 	 	 
	 	 	and
    the defects, irregularities and deficiencies in titles of the character mentioned in said clauses of any property or rights
    of way included in such Property Additions do not materially impair the use of such property or rights of way for the purposes
    for which the same are held by the Company;
	 	 	 
	(4)
     Independent Engineer’s Certificate	 	(4) 
    in case any Property Additions are shown by the Engineer’s Certificate provided for in subdivision (3) above to
    include property (other than property acquired from PacifiCorp, a Maine corporation, and Utah Power & Light Company,
    a Utah corporation, upon the merger of those corporations into the Company) which within six months prior to the date of acquisition
    thereof by the Company, has been used or operated by others than the Company in a business similar to that in which it has
    been or is to be used or operated by the Company and such certificate does not show the fair value thereof to the Company,
    as of the date of such certificate, to be less than Twenty-five Thousand Dollars ($25,000) or less than one per centum (1%)
    of the aggregate principal amount of the bonds at the time Outstanding hereunder, a further certificate consisting of an Independent
    Engineer’s Certificate stating as to such Property Additions which have been so used or operated and (at the option
    of the Company) as to any other Property Additions included in the Engineer’s Certificate provided for in subdivision
    (3) of this Section that the then aggregate fair value thereof to the Company, as of the date of such Independent
    Engineer’s Certificate, in the opinion of the signer is a specified amount; and in the case of the authentication and
    delivery of bonds, the fair value to the Company in the opinion of the signer of any property so used or operated which has
    been subjected to the Lien of this Indenture since the commencement of the then current calendar year as the basis for the
    authentication and delivery of bonds, and as to which an Independent Engineer’s Certificate has not previously been
    furnished to the Trustee;
	 	 	 
	(5)
    Written appraisal in certain cases	 	(5) 
    in case any Property Additions are shown by the Engineer’s Certificate provided for in subdivision (3) above to
    have been acquired, made or constructed in whole or in part through the delivery of securities, a written appraisal of an
    engineer, appraiser or other expert person, firm or corporation, stating in the opinion of the signer the fair market value
    in cash of such securities at the time of delivery thereof in payment for or for the acquisition of such Property Additions;

 

     

    	 	45	 

    

 

	§5.06	 	 
	 	 	 
	(6) 
    except in the case of the authentication of the bonds of the First Series, a Net Earning Certificate showing the Adjusted
    Net Earnings of the Company to be as required by Section 5.05 hereof;	 	(6)
    Net Earning Certificate
	 	 	 
	(7) 
        an Opinion of Counsel stating the signer’s opinion:

         

        (a) 
        to the effect that (except as to paving, grading and other improvements to, under or upon public highways, bridges, parks
        or other public property of analogous character) this Indenture is, or upon the delivery of, and/or the filing and/or
        recording in the proper places and manner of, the instruments of conveyance, assignment or transfer, if any, specified
        in said opinion, will be, a lien on all the Property Additions made the basis of such application, subject to no lien
        thereon prior or equal to the Lien of this Indenture except Qualified Liens and Excepted Encumbrances and that the Company
        has the right to remove any such Property Additions which are located on any leasehold or which are on property as to
        which the Company has an easement, prior to or upon the termination of such leasehold or easement, without compensation
        or other remuneration and free of any lien prior or equal to the Lien of this Indenture, except Qualified Liens and Excepted
        Encumbrances;

         

        (b) 
        to the effect that the Company has corporate authority to operate the Property Additions with respect to which such application
        is made; and

         

        (c) 
        as to the general nature and extent of any Qualified Liens existing upon any of such Property Additions, and the principal
        amount of the then Outstanding Qualified Lien Bonds secured thereby, if any;
	 	(7)
    Opinion of Counsel
	 	 	 
	(8) 
        an Opinion of Counsel complying with the requirements of Section 22.05 hereof and stating the signer’s opinion
        to the effect that:

         

        (a) 
        the issue of the bonds has been duly authorized by the Company and has been established in accordance with Section 2.03
        hereof;

         

        (b) 
        the issue of the bonds has been duly authorized by any and all governmental authorities the consent of which is requisite
        to the legal issue of such bonds, specifying any officially authenticated certificates, or other documents, by which such
        consent is or may be evidenced, or that no consent of any governmental authorities is requisite; and
	 	(8)
    Further Opinion of Counsel

 

     

    	 	46	 

    

 

	 	 	§5.06; Art. VI, §6.01
	 	 	 
	 	 	(c) 
    the Company has contracted to pledge such bonds to secure other indebtedness of a principal amount not less than seventy-five
    per centum (75%) of the principal amount of such bonds or has sold or contracted to sell or to issue for value such bonds;
	 	 	 
	(9)
    Instruments of conveyance	 	(9) 
    copies of the instruments of conveyance, assignment and transfer, if any, specified in the Opinion of Counsel provided for
    in subdivision (7) above; and
	 	 	 
	(10)
    Further certificates, etc.	 	(10) 
    copies of the certificates, or other documents, if any, specified in the Opinion of Counsel provided for in subdivision (8) above.
	 	 	 
	 	 	If,
        in order to render the Opinion of Counsel provided for in subdivision (7) or subdivision (8) above, the signer
        thereof shall deem it necessary that additional facts or matters be stated in the Engineer’s Certificate provided
        for in subdivision (3) above, then in such event the Engineer’s Certificate may state all such additional facts
        or matters as the signer of such Opinion of Counsel may request.

         

        The
        amount of the Cost of any Property Additions and the fair value thereof to the Company and the fair market value in cash
        of any securities so delivered in payment therefor or for the acquisition thereof and the amount of any deductions and
        any additions made pursuant to Section 1.04 hereof shall be determined for the purposes of this Article V by
        the appropriate certificate provided for in this Section. In the case of Property Additions subject to a Qualified Lien,
        the fair value of such Property Additions shall be determined as if such Property Additions were free of such Qualified
        Lien.

	 	 	 
	 	 	Article VI
    

    Issuance of Bonds upon Retirement of 

    Bonds Previously Outstanding Hereunder
	 	 	 
	Bonds
        Issuable on basis of retirement of bonds previously outstanding

         
	 	Section 6.01     Subject
    to the provisions of Section 6.02 hereof, the Trustee shall, from time to time, upon the written order or orders of the
    Company signed by an Authorized Executive Officer of the Company, and by its Secretary or an Assistant Secretary or an Authorized
    Financial Officer of the Company, authenticate and deliver bonds hereunder of one or more series of a principal amount equal
    to and on the basis of the

 

     

    	 	47	 

    

 

	§6.01	 	 
	 	 	 
	principal amount of
    any Retired Bonds, but only after the Trustee shall have received the following:	 	Requirements:
	 	 	 
	(1) 
    the Resolution provided for in subdivision (1) of Section 5.06 hereof;	 	(1)
    Resolution
	 	 	 
	(2) 
    the Officers’ Certificate provided for in subdivision (2) of Section 5.06 hereof;	 	(2)
    Officers’ Certificate
	 	 	 
	(3) 
    an Officers’ Certificate stating that Retired Bonds, specified by series (in an aggregate principal amount not less
    than the aggregate principal amount of bonds in respect of which such written order or orders for authentication and delivery
    is or are made under this Section 6.01) have theretofore been pledged to secure indebtedness of a principal amount not
    less than seventy-five per centum (75%) of the principal amount of such Retired Bonds or sold or issued for value and are
    the basis for such written order or orders;	 	(3)
    Further Officers’ Certificate
	 	 	 
	(4) 
    the Opinion of Counsel provided for in subdivision (8) of Section 5.06 hereof; and	 	(4)
    Opinion of Counsel
	 	 	 
	(5) 
    copies of the certificates, or other documents, if any, specified in the Opinion of Counsel provided for in subdivision (4) of
    this Section.	 	(5)
    Further certificates, etc.
	 	 	 
	In
    case (i) an application for the authentication and delivery of bonds under any of the provisions of this Indenture, which
    shall have contained a Net Earning Certificate, shall have been made to the Trustee subsequent to the delivery to the Trustee
    of an irrevocable direction to apply moneys to any such purchase, payment, retirement and/or redemption of, or subsequent
    to the cancellation or surrender for cancellation of, any bonds on the basis of which other bonds are to be authenticated
    and delivered pursuant to the provisions of this Article VI, and in such Net Earning Certificate the Annual Interest
    Requirements on any such bonds to be authenticated and delivered shall not have been included, or (ii) the Bonds on the
    basis of which other bonds are to be so authenticated and delivered mature by their terms at a date more than one year after
    the date of authentication and delivery of the bonds applied for and bear a lower interest rate than the bonds applied for,
    then the Trustee shall in either such case also receive a Net Earning Certificate showing the Adjusted Net Earnings to be
    as required by Section 5.05 hereof.	 	Net
        Earning Certificate in certain cases

         

 

     

    	 	48	 

    

 

	 	 	§§6.01,
    6.02; Art. VII, §7.01
	 	 	 
	 	 	Any
    and all coupon bonds delivered to the Trustee pursuant to this Article shall be accompanied by all unmatured coupons
    appertaining thereto.
	 	 	 
	Requirement
        as to discharge of Class “A” Mortgage

         
	 	Section 6.02     No
    bonds shall be authenticated or delivered hereunder pursuant to the provisions of Section 6.01 hereof on the basis of
    the principal amount of any Retired Bonds theretofore authenticated and delivered under Section 4.01 hereof until the
    Class “A” Mortgage under which the Class “A” Bonds made the basis for the authentication
    and delivery of the Retired Bonds has been discharged pursuant to the provisions of Section 106 of the Pacific Mortgage,
    or of Section 116 of the Utah Mortgage, or of a comparable section of another Class “A” Mortgage (as
    the case may be), as then in effect.
	 	 	 
	 	 	Article VII
    

    Issuance of Bonds upon Deposit of Cash with Trustee
	 	 	 
	Bonds
        issuable on basis of cash deposited with the Trustee

         

         

        Requirements:
	 	Section 7.01     The
    Trustee shall, from time to time, upon the written order or orders of the Company signed by an Authorized Executive Officer
    of the Company, and by its Secretary or an Assistant Secretary or an Authorized Financial Officer of the Company, authenticate
    and deliver bonds hereunder of one or more series upon deposit with the Trustee by the Company of cash equal to the aggregate
    principal amount of the bonds so requested to be authenticated and delivered but only after the Trustee shall have received:
	 	 	 
	(1) Resolution
	 	(1) 
    the Resolution provided for in subdivision (1) of Section 5.06 hereof;
	 	 	 
	(2)
        Officers’ Certificate
	 	(2) 
    the Officers’ Certificate provided for in subdivision (2) of Section 5.06 hereof;
	 	 	 
	(3)
    Net Earning Certificate	 	(3) 
    a Net Earning Certificate showing the Adjusted Net Earnings of the Company to be as required by Section 5.05 hereof;
	 	 	 
	(4)
    Opinion of Counsel	 	(4) 
    the Opinion of Counsel provided for in subdivision (8) of Section 5.06 hereof; and
	 	 	 
	(5)
    Further certificates, etc.	 	(5) 
    copies of the certificates, or other documents, if any, specified in the Opinion of Counsel provided for in subdivision (4) of
    this Section.

 

     

    	 	49	 

    

 

	§§7.02,
    7.03	 	 
	 	 	 
	Section 7.02     All
    cash deposited with the Trustee under the provisions of the next preceding Section hereof shall be held by the Trustee
    as a part of the Mortgaged and Pledged Property, and may be withdrawn from time to time by the Company, upon application of
    the Company to the Trustee evidenced by a Resolution, in an amount equal to the aggregate principal amount of bonds to the
    authentication and delivery of which the Company shall be entitled under any of the provisions of this Indenture by virtue
    of compliance with all applicable provisions of this Indenture (except as hereinafter in this Section otherwise provided).	 	Withdrawal
        of cash in lieu of bonds

         

	 	 	 
	Upon
    any such application for withdrawal the Company shall comply with all applicable provisions of this Indenture relating to
    the authentication and delivery of such bonds except that the Company shall not be required to comply with any earning requirement
    or to deliver to the Trustee any Resolution, Net Earning Certificate or Opinion of Counsel such as is described in subdivisions
    (1), (6) and (8) of Section 5.06 hereof.	 	Compliance
        with provisions of Indenture

         

	 	 	 
	Any
    withdrawal of cash under this Section shall operate as a waiver by the Company of its right to the authentication and
    delivery of the bonds on which it is based and such bonds may not thereafter be authenticated and delivered hereunder, and
    any Property Additions which have been made the basis of any such right to the authentication and delivery of bonds so waived
    shall have the status of Funded Property and shall be deemed to have been made the basis of the withdrawal of such cash, and
    any bonds or Qualified Lien Bonds which have been made the basis of any such right to the authentication and delivery of bonds
    so waived shall be deemed to have been made the basis of the withdrawal of such cash and any Class “A” Bonds
    which have been made the basis of any such right to the authentication and delivery of bonds shall be deemed to have been
    made the basis of the withdrawal of such cash.	 	Effect
        of cash withdrawal on right to issue bonds

	 	 	 
	Section 7.03     If
    at any time the Company shall so direct, any sums deposited with the Trustee under the provisions of Section 7.01
    hereof may be used or applied to the purchase, payment or redemption of bonds in the manner and subject to the conditions provided
    in subdivisions (3) and (4) of Section 13.06 hereof; provided, however, that, none of such cash shall be applied
    to the payment of more than the principal amount of any	 	Application
    of cash to retire bonds

 

     

    	 	50	 

    

 

	 	 	§7.03;
    Art. VIII, §8.01
	 	 	 
	 	 	bonds so purchased,
    paid or redeemed, except to the extent that the aggregate principal amount of all bonds theretofore, and of all bonds then
    to be, purchased, paid and/or redeemed with cash deposited under Section 7.01 hereof shall have exceeded the aggregate
    cost for principal, interest, brokerage and premium, if any, on all bonds theretofore, and on all bonds then to be, purchased,
    paid and/or redeemed with cash so deposited.
	 	 	 
	 	 	Article VIII
    

    Amendments to the Trust Indenture Act
	 	 	 
	Reservation
        of right to amend Indenture as necessary or desireable based on amendments to Trust Indenture Act

         
	 	Section 8.01     The
    Company reserves the right, without any consent or other action by holders of bonds, to make such amendments to this Indenture
    (a) as shall be necessary from time to time in order to qualify this Indenture under the Trust Indenture Act as in force
    on the date of the making of any such amendment, and/or (b) as may in the judgment of the Company (as set forth in a
    Resolution) from time to time be desirable and as may hereafter become permitted by virtue of amendments to the Trust Indenture
    Act in force on the date of such amendment to this Indenture; provided that no such amendment shall, without the consent of
    the holder of any bond issued under this Indenture affected thereby, impair or affect the right of such holder to receive
    payment of the principal of (and premium, if any) and interest on such bond, on or after the respective due dates expressed
    in such bond, or to institute suit for the enforcement of any such payment on or after such respective dates, or permit the
    creation of any lien ranking prior to, or on a parity with, the Lien of this Indenture with respect to any of the property
    mortgaged and pledged thereunder or permit the deprivation of such bondholder of a lien upon the Mortgaged and Pledged Property
    for the security of his, her or its bonds (subject only to the lien of taxes for the then current year, the lien of taxes,
    assessments or governmental charges not then due and delinquent and to any mortgage or other liens existing upon said property
    which are prior to this Indenture at the time of such amendment), and holders of any bonds Outstanding under this Indenture
    by acceptance of such bonds, agree and consent to the making of any such amendments.

 

     

    	 	51	 

    

 

	Art. IX,
    §§9.01, 9.02, 9.03	 	 
	 	 	 
	Article IX

     Particular Covenants of the Company	 	 
	 	 	 
	Section 9.01     The
    Company hereby covenants that on the day hereof it is lawfully possessed of all the Mortgaged and Pledged Property; that it
    will maintain and preserve the Lien of this Indenture so long as any of the bonds issued hereunder are Outstanding; that (subject
    to the provisions of Section 18.03 hereof) all property of the Company hereafter acquired, made or constructed and wheresoever
    situated, except any hereinbefore or hereinafter expressly excepted, shall be subject to the Lien of this Indenture just as
    though said property was now owned by the Company and described herein; and that it has good right and lawful authority to
    mortgage and pledge the Mortgaged and Pledged Property, as provided in and by this Indenture.	 	Possession;
        maintenance of Lien; Lien extends to all property unless expressly excepted

         

	 	 	 
	Section 9.02     The
        Company hereby covenants that it will duly and punctually pay the principal of and interest and premium, if any, on all
        bonds Outstanding hereunder, according to the terms thereof; and that as the coupons appertaining to said bonds are paid
        they will be cancelled.

         
	 	Payment of principal and interest; cancellation
    of coupons
	 	 	 
	Section 9.03     (a) 
    The Company hereby covenants that, whenever necessary to avoid or fill a vacancy in the office of Trustee, the Company will
    in the manner provided in Section 19.15 hereof appoint a Trustee so that there shall be at all times a Trustee hereunder
    which shall at all times be a bank or trust company having its principal office and place of business in the United States
    of America, if there be such a bank or trust company willing and able to accept the trust upon reasonable or customary terms,
    and which shall at all times be a corporation organized and doing business under the laws of the United States or of any State
    or Territory or of the District of Columbia (provided, however, that if Section 310(a) of the Trust Indenture Act
    or the rules and regulations of the Securities and Exchange Commission under the Trust Indenture Act at any time permit
    a corporation organized and doing business under the laws of any other jurisdiction to serve as trustee of an indenture qualified
    under the Trust Indenture Act, this Section 9.03 shall be automatically amended to permit a corporation organized and
    doing business under the laws of any such other jurisdiction to serve as Trustee hereunder), with a combined capital and surplus
    of at least Five Million Dollars ($5,000,000) or the foreign currency equivalency thereof, and authorized under such laws
    to exercise corporate trust powers and	 	Appointment
        of Trustee

         

         

         

         

        

         

         

         

         

        Automatic
        amendment

 

     

    	 	52	 

    

 

	 	 	§9.03
	 	 	 
	 	 	subject to supervision or examination by a supervisory
    or examining authority.
	 	 	 
	Company to maintain office or agency

         

         

         

         

         

         

         

         

        Results
        of failure to maintain such office or agency

         

         

         

         

         

         

         

          
	 	(b) 
The Company hereby covenants that it will keep an office or agency, while any of the bonds issued hereunder are Outstanding, at
any and all places at which the principal of or interest on any of said bonds and coupons appurtenant thereto shall be payable,
where bonds entitled to be registered, transferred, exchanged or converted may be presented or surrendered for registration, transfer,
exchange or conversion, where notices, presentations and demands to or upon the Company in respect of such bonds or coupons as
may be payable at such places or in respect of this Indenture may be given or made, and for the payment of the principal thereof
and interest and premium, if any, thereon. The Company will from time to time give the Trustee written notice of the location
of such office or offices or agency or agencies, and in case the Company shall fail to maintain such office or offices or agency
or agencies or to give the Trustee written notice of the location thereof, then in addition to any other remedy or right arising
as a result of the violation of the covenants contained in this Section, the Company agrees that any such notice, presentation
or demand in respect of said bonds or coupons or of this Indenture may be given or made, unless other provision is expressly made
herein, to or upon the Trustee at its corporate trust office, and the Company hereby authorizes such presentation and demand to
be made to and such notice to be served on the Trustee in either of such events and the principal of and interest and premium,
if any, on said bonds shall in such event be payable at said office of the Trustee.

                                                         

	 	 	 
	Duty of paying agent
    other than Trustee	 	(c) The Company hereby covenants that, if it shall appoint a paying agent other than the Trustee, it will cause such paying agent to execute and deliver to the Trustee an instrument in which it shall agree with the Trustee, subject to the provisions of this Section, (1) that such paying agent shall hold in trust for the benefit of the bondholders or the Trustee all sums held by such paying agent for the payment of the principal of or interest on the bonds (and premium, if any); and (2) that such paying agent shall give the Trustee notice of any default by the Company in the making of any deposit with it for the payment of the principal of or interest on the bonds (and premium, if any), and of any default by the Company in the making of any such payment. Such paying agent shall not be obligated to segregate such sums from other funds of such paying agent except to the extent required by law.

 

     

    	 	53	 

    

 

	§§9.03,
    9.04	 	 
	 	 	 
	(d) 
    The Company hereby covenants that, if the Company acts as its own paying agent, it will, on or before each due date of each
    installment of principal or interest on the bonds, set aside and segregate and hold in trust for the benefit of the bondholders
    or the Trustee a sum sufficient to pay such principal or interest so becoming due on the bonds (and premium, if any) and will
    notify the Trustee of such action, or of any failure to take such action.	 	Duty of Company acting as paying agent
	 	 	 
	(e) 
    Anything in this Section to the contrary notwithstanding, the Company may at any time, for the purpose of obtaining a
    release or satisfaction of this Indenture or for any other reason, pay or cause to be paid to the Trustee all sums held in
    trust by it or any paying agent as required by this Section, such sums to be held by the Trustee upon the trusts in this Indenture
    contained.	 	Delivery
        to Trustee of sums held by other paying agent

         

	 	 	 
	(f) 
    Anything in this Section to the contrary notwithstanding, the holding of sums in trust as provided in this Section is
    subject to the provisions of Section 22.03 hereof.	 	All sums to be held subject to Section 22.03
	 	 	 
	Section 9.04     The
    Company hereby covenants that it will pay all taxes and assessments and other governmental charges lawfully levied or assessed
    upon the Mortgaged and Pledged Property, or upon any part thereof, or upon the interest of the Trustee in the Mortgaged and
    Pledged Property, before the same shall become delinquent, and will duly observe and conform to all valid requirements
    of any governmental authority relative to any of the Mortgaged and Pledged Property, and all covenants, terms and conditions
    upon or under which any of the Mortgaged and Pledged Property is held; that it will not suffer any lien to be hereafter created
    upon the Mortgaged and Pledged Property, or any part thereof, or the income therefrom, prior or equal to the Lien hereof,
    other than Excepted Encumbrances, and other than, in the case of property hereafter acquired, vendors’ liens, purchase
    money mortgages and any lien thereon at the time of the acquisition thereof (including but not limited to a Class “A”
    Mortgage), and within four months after any lawful claim or demand for labor, materials, supplies or other objects has become
    delinquent which if unpaid would or might by law be given precedence over the Lien of this Indenture as a lien or charge
    upon any of the Mortgaged and Pledged Property, or the income therefrom, it will pay or cause to be discharged or
    make adequate provisions to satisfy or discharge the same; provided, however, that nothing in this Section contained
    shall require the Company to observe or conform to any	 	Payment of taxes, etc., discharge of liens

 

     

    	 	54	 

    

 

	 	 	§§9.04,
    9.05
	 	 	 
	 	 	requirement of governmental
    authority or to cause to be paid or discharged, or to make provision for, any such lien or charge, or to pay any such tax,
    assessment or governmental charge so long as the validity thereof shall be contested in good faith and by appropriate legal
    proceedings; and provided that nothing in this Section contained shall require the Company to pay, discharge or make
    provisions for any tax, assessment or other governmental charge, the validity of which shall not be so contested if adequate
    security for the payment of such tax, assessment or other governmental charge and for any damages which may reasonably be
    anticipated from failure to pay the same shall be given to the Trustee; and that, save as aforesaid, it will not suffer any
    matter or thing whereby the Lien hereof might or could be impaired in contravention of the provisions hereof.
	 	 	 
	Insurance
        on property

         

         

         

         

         

         

         

         

         

        Other
        method or plan of protection against loss by fire

         
	 	Section 9.05     (I) 
    The Company hereby covenants that it will keep or cause to be kept all the property subject to the Lien hereof insured against
    fire, to the extent that property of similar character is usually so insured by companies similarly situated and operating
    like properties, to a reasonable amount, by reputable insurance companies, any loss, except as to materials and supplies
    and except as to any particular loss less than the greater of Four Million Dollars ($4,000,000) or two per centum (2%)
    of the bonds Outstanding hereunder on the date of such particular loss, to be made payable to the Trustee as the interest
    of the Trustee may appear, to the trustee of a Class “A” Mortgage, or to the trustee or other holder of any
    mortgage or other lien constituting a Qualified Lien or any other lien prior hereto upon property subject to the Lien hereof,
    if the terms thereof require losses so to be made payable or that it will, in lieu of or supplementing such insurance in whole
    or in part, adopt some other method or plan of protection against loss by fire at least equal in protection to the method
    or plan of protection against loss by fire of companies similarly situated and operating properties subject to similar fire
    hazards or properties on which an equal primary fire insurance rate has been set by reputable insurance companies, and that
    if it shall adopt such other method or plan, it will, except as to materials and supplies and except as to any particular
    loss less than the greater of Four Million Dollars ($4,000,000) or two per centum (2%) of the bonds Outstanding
    hereunder on the date of such particular loss, pay to the Trustee on account of any loss sustained by reason of the destruction
    or damage of such property by fire, an amount of cash equal to such loss less any amounts otherwise paid to the
    Trustee, to the trustee of a Class

 

     

    	 	55	 

    

 

	§9.05	 	 
	 	 	 
	“A” Mortgage,
    or to the trustee or other holder of any mortgage or other lien constituting a Qualified Lien or any other lien prior hereto
    upon property subject to the Lien hereof, if the terms thereof require losses so to be paid. Any amounts of cash so required
    to be paid by the Company pursuant to any such method or plan shall for the purposes of this Indenture be deemed to be proceeds
    of insurance. In case of the adoption of such other method or plan of protection, the Company shall also furnish to the Trustee
    a certificate of an actuary or other qualified person appointed by the Company with respect to the adequacy of such method
    or plan.	 	 
	 	 	 
	(II) 
        All moneys paid to the Trustee by the Company in accordance with this Section or received by the Trustee as proceeds
        of any insurance against loss by fire shall, subject to the requirements of a Class “A” Mortgage, any
        mortgage constituting a Qualified Lien or any other lien prior hereto upon property subject to the Lien hereof, be held
        by the Trustee and, subject as aforesaid, shall be paid by it to the Company to reimburse the Company for an equal amount
        expended or committed for expenditure in the rebuilding or renewal of the property destroyed or damaged, upon receipt
        by the Trustee of (1) an Officers’ Certificate requesting such reimbursement, (2) an Engineer’s
        Certificate stating the amounts so expended or committed for expenditure and the nature of such rebuilding or renewal
        and the fair value to the Company of the property rebuilt or renewed or to be rebuilt or renewed and if

         

        (A) 
        within six months prior to the date of acquisition thereof by the Company, such property has been used or operated, by
        a person or persons other than the Company, in a business similar to that in which it has been or is to be used or operated
        by the Company, and

         

        (B) 
        the fair value to the Company of such property as set forth in such Engineer’s Certificate is not less than Twenty-five
        Thousand Dollars ($25,000) and not less than one per centum (1%) of the aggregate principal amount of the bonds at the
        time Outstanding under this Indenture,

         

        the
        Engineer making such certificate shall be an independent Engineer, and (3) an Opinion of Counsel that the property
        so rebuilt or renewed or to be rebuilt or renewed is or will be subject to the Lien hereof to the same extent as was the
        property so destroyed or damaged, provided, however, that to the extent that moneys paid by the Trustee to the
	 	Application of insurance proceeds

 

     

    	 	56	 

    

 

	 	 	§§9.05,
    9.06
	 	 	 
	 	 	Company for reimbursement,
    as aforesaid, shall represent the proceeds of property that was not Funded Property destroyed or damaged by fire, the property
    so rebuilt or renewed (for which reimbursement is so made), shall not be deemed to be Funded Property.
	 	 	 
	Use of money not applied to rebuilding or renewal
    within eighteen months	 	(III) 
    Any such money not so applied within eighteen (18) months after its receipt by the Trustee, or in respect of which notice
    in writing of intention to apply the same to the work of rebuilding or renewal then in progress and uncompleted shall not
    have been given to the Trustee by the Company within such eighteen (18) months, or which the Company shall at any time notify
    the Trustee is not to be so applied, shall thereafter be withdrawn, used or applied in the manner, to the extent and for the
    purposes and subject to the conditions provided in Section 13.06 hereof.
	 	 	 
	Fire insurance policies; provision for maximum
    deductible amount and/or co-insurance or self insurance provisions with maximum dollar amount	 	(IV) 
    Anything in this Indenture to the contrary notwithstanding, the Company may have fire insurance policies with (a) a deductible
    provision in a dollar amount per occurrence not exceeding the greater of Five Million Dollars ($5,000,000) or three per centum
    (3%) of the bonds Outstanding hereunder on the date such policy goes into effect and/or (b) co-insurance or self insurance
    provisions with a dollar amount per occurrence not exceeding 30% of the loss proceeds otherwise payable; provided, however,
    the dollar amount described in clause (a) above may be exceeded to the extent such dollar amount per occurrence is below
    the deductible amount in effect as to fire insurance (x) on property of similar character insured by companies similarly
    situated and operating like property or (y) on property as to which an equal primary fire insurance rate has been set
    by reputable insurance companies.
	 	 	 
	Maintenance of Mortgaged and Pledged Property	 	Section 9.06     (I) 
    The Company will not, except as herein permitted, do or suffer any act or thing whereby the Mortgaged and Pledged Property
    might or could be materially impaired, and it will at all times maintain, preserve and keep the Mortgaged and Pledged Property,
    as an operating system or systems capable of engaging in all or any of the businesses described in the first sentence of subdivision
    (I) of Section 1.04 hereof, in good repair, working order and condition. The Company will from time to time make
    all needful and proper repairs, replacements, additions, betterments and improvements, so that the operations and business
    of and pertaining to the Mortgaged and Pledged Property, as an operating system or systems, shall at all times be conducted
    properly and advantageously; and whenever any portion of the Mortgaged and Pledged Property shall have been worn out or destroyed

 

     

    	 	57	 

    

 

	§9.06	 	 
	 	 	 
	or shall have become
    obsolete or otherwise unfit for use, the Company will procure substitutes of at least equal utility and efficiency, so that
    at all times the efficiency of the Mortgaged and Pledged Property, as an operating system or systems, shall be fully maintained.	 	 
	 	 	 
	(II) 
    Nothing herein contained, however, shall be held to prevent the Company from permanently discontinuing the operation of or
    reducing the capacity of any of its plants or properties, if, in the judgment of the Company, any such action which affects
    the Mortgaged and Pledged Property is necessary or desirable in the conduct of the business of the Company, or if the Company
    is ordered so to do by regulatory authority having jurisdiction in the premises, or if the Company intends to sell or dispose
    of the same and within a reasonable time shall endeavor to effectuate such sale; nor shall anything herein contained be construed
    to prevent the Company from taking such action with respect to the use of its plants and properties as is proper under the
    circumstances; including the cessation or omission to exercise rights, permits, licenses, privileges or franchises which,
    in the judgment of the Company, can no longer be profitably exercised or availed of; provided, however, the Company covenants
    that it will, within sixty (60) days after its determination permanently to discontinue the operation of any of its plants
    or properties subject to the Lien of this Indenture of a Cost, determined as provided in Section 1.04 hereof, in any
    one case in excess of Five Million Dollars ($5,000,000) or in the aggregate in any period of twelve (12) consecutive calendar
    months in excess of Ten Million Dollars ($10,000,000), furnish the Trustee for information purposes with an Officers’
    Certificate setting forth the Cost, as so determined, to the Company of the plants, or properties, the operation of which
    the Company shall have determined so to discontinue.	 	Permanent discontinuance of operation or reduction
    of capacity of any plants or property
	 	 	 
	(III) 
    Whenever (but not more often than once in any period of five (5) years) the holders of at least twenty-five per centum
    (25%) in principal amount of the bonds Outstanding hereunder shall deliver to the Trustee and to the Company a written statement
    that they have reasonable grounds to believe that the Mortgaged and Pledged Property has not been adequately maintained, as
    an operating system or systems, in good repair, working order and condition and request the Company to furnish to the Trustee
    an Independent Engineer’s Certificate stating whether or not the Mortgaged and Pledged Property, as an operating system
    or systems, has been maintained in good repair, working order and condition, and whether or not there is any property subject
    to the Lien of this Indenture	 	Independent Engineer’s Certificate on maintenance
    of Mortgaged and Pledged Property

 

     

    	 	58	 

    

 

	 	 	§9.06
	 	 	 
	 	 	which
        should be retired on the books of the Company as having ceased permanently to be used or useful in the business of the
        Company and which has not been so retired, the Company shall cause such Independent Engineer’s Certificate to be
        furnished to the Trustee within a reasonable time after such request. If such independent Engineer shall report that the
        Mortgaged and Pledged Property, as an operating system or systems, has not been maintained in good repair, working order
        and condition, he or she shall state clearly in his or her report the character and extent of, and, if longer than one
        year, the time reasonably necessary to make good such deficiency and, if he or she shall report that there is property
        subject to the Lien of this Indenture which should be retired on the books of the Company as having ceased permanently
        to be used or useful in the business of the Company and which has not been so retired, his or her report shall briefly
        describe such property. Said report shall be placed on file by the Trustee and shall be open to inspection by any bondholder
        at any reasonable time.

         

	 	 	 
	Company objection in writing to findings of independent
    Engineer; artibration	 	(IV) 
    If the Company, within thirty (30) days after the filing of the report of such independent Engineer, objects in a writing
    delivered to the Trustee to the findings of such independent Engineer as to the character and extent of such maintenance deficiency
    and/or to the property which should be retired upon the books of the Company, then the character and extent of such maintenance
    deficiency, if any, and/or the property, if any, so to be retired upon the books of the Company shall be forthwith referred
    to three arbitrators selected in the following manner: The Trustee, within ten (10) days after the expiration of said
    period of thirty (30) days, shall name one arbitrator and give notice of such selection to the Company. Within ten (10) days
    after receipt of such notice, the Company shall name one arbitrator and give notice of such selection to the Trustee, and
    failure so to do shall entitle the Trustee to name an arbitrator to represent the Company. The two thus selected shall, within
    ten (10) days after the appointment of the arbitrator representing the Company, select a third arbitrator, but if said
    arbitrators are unable, within said ten (10) days, to agree upon such third arbitrator, then, upon the election of either
    the Company or the Trustee, any District Judge of the United States of America for the District in which the Trustee has its
    principal place of business may appoint such third arbitrator, upon application to said District Judge by either party after
    five (5) days’ notice thereof to the other party. The written decision of a majority of such arbitrators shall
    be filed as soon as practicable with the Trustee and a copy thereof

 

     

    	 	59	 

    

 

	§9.06	 	 
	 	 	 
	delivered to the Company,
    and shall be binding upon the Trustee, the Company and the bondholders.	 	 
	 	 	 
	(V) 
    Within one year from the date of the report of such independent Engineer or the date of such decision of arbitrators, whichever
    is later, or such longer period as may be reported by such independent Engineer or the arbitrators, as the case may be, to
    be reasonably necessary to cure any such deficiency, no statement contained in any report of any independent Engineer filed
    with the Trustee, as hereinbefore in this Section provided, shall be deemed to be in any way evidence or proof of a failure
    to comply with the provisions of this Section.	 	Grace period regarding compliance
	 	 	 
	(VI) 
    The Company shall, with all reasonable speed, do or cause to be done such maintenance work as may be necessary to cure any
    such maintenance deficiency as shall have been determined to exist as hereinabove provided at the time of the report of such
    independent Engineer or at the time of such decision of arbitrators, as the case may be, whereupon such independent Engineer
    or such arbitrators, as the case may be (or, in case of his or her or their refusal or inability to act, some other independent
    Engineer), shall report in writing to the Trustee whether such deficiency has been cured.	 	Company shall cure deficiency; independent Engineer
    or arbitrators shall report to Trustee
	 	 	 
	(VII) 
    Unless the Trustee shall be so advised in writing by such independent Engineer or arbitrators, as the case may be, within
    one year from the date of the report of such independent Engineer or the date of such decision of arbitrators, as the case
    may be, or such longer period as may be reported by such independent Engineer or the arbitrators, as the case may be, to be
    reasonably necessary for the purpose, that such deficiency has in all material respects been cured, the Company shall be deemed
    to have defaulted in the due performance of the covenants of this Section, so far as concerns the maintenance of the Mortgaged
    and Pledged Property.	 	Company deemed to have defaulted in covenants
    of this Section unless Trustee advised deficiency has been cured
	 	 	 
	(VIII) 
    All expenses incurred pursuant to this Section shall be borne by the Company.	 	Expenses
	 	 	 
	(IX) 
    In the event that any regulatory authority having jurisdiction over the Company shall determine that the expenditures for
    repairs and maintenance necessary to cure any such maintenance deficiency as shall have been so determined would be excessive
    or shall, by order or regulation, prohibit, in whole or in part, such expenditures for repairs and maintenance, then, upon
    filing with the Trustee a certified copy of	 	Relief
        of Company from certain covenants by order or regulation of regulatory authority

         

 

 

     

    	 	60	 

    

 

	 	 	§§9.06,
    9.07, 9.08, 9.09
	 	 	 
	 	 	such
        order or a copy of such regulation, as the case may be, the Company shall, so long as such order or such regulation remains
        in effect, be relieved from compliance with the covenants contained in this Section, in regard to the maintenance
        of the Mortgaged and Pledged Property, to the extent that such expenditures for repairs and maintenance shall have been
        held excessive or shall be prohibited. 

	 	 	 
	Retirement
        from plant account of property no longer useful in business

         
	 	(X) 
    The Company covenants that it will promptly retire on its books of account any of the Mortgaged and Pledged Property included
    in plant account (except real estate held for the purpose of sale or resale) that has, in the opinion of the Company, ceased
    permanently to be used or useful in its business or which pursuant to the provisions of this Section any independent
    Engineer has reported to the Company more than thirty (30) days prior thereto (without written objection thereto having been
    delivered to the Trustee by the Company), or any arbitrators have determined, should be retired on the books of the Company
    as having ceased permanently to be used or useful in the business of the Company.
	 	 	 
	Covenant
        as to common dividends.

         
	 	Section 9.07     Other
    than dividends payable solely in shares of its common stock, the Company shall not declare and pay dividends in cash or property
    on any shares of its common stock if, after giving effect to such declaration or payment, the Company would not be able to
    pay its debts as they become due in the usual course of business.
	 	 	 
	Maintenance of corporate existence and franchises.	 	Section 9.08     The
    Company hereby covenants that it will, subject to the provisions of Article XVIII hereof, at all times maintain its corporate
    existence and right to carry on business, and duly procure all renewals and extensions thereof, if and when any shall be necessary
    and, subject to the provisions of this Indenture, will use its best efforts to maintain, preserve and renew all the rights,
    powers, privileges and franchises owned by it, affecting the Mortgaged and Pledged Property.
	 	 	 
	Recording, filing, etc.	 	Section 9.09     The
    Company hereby covenants that it will cause this Indenture and all indentures and instruments supplemental hereto (or notices,
    memoranda or financing statements as may be recorded or filed to place third parties on notice thereof) to be promptly recorded
    and filed and re-recorded and re-filed in such manner and in such places, as may be required by law in order fully to preserve
    and protect the security of the bondholders and all rights of the Trustee, and will furnish to the Trustee:

 

     

    	 	61	 

    

 

	§9.09	 	 
	 	 	 
	(a) 
    Promptly after the execution and delivery of this Indenture and of each supplemental indenture, an Opinion of Counsel either
    stating that in the opinion of such counsel this Indenture or such supplemental indenture (or notice or memorandum thereof
    or financing statement in connection therewith) has been properly recorded and filed, so as to make effective the lien intended
    to be created hereby or thereby, and reciting the details of such action, or stating that in the opinion of such counsel no
    such action is necessary to make such lien effective. The Company shall be deemed to be in compliance with this subdivision
    (a) if (1) the Opinion of Counsel herein required to be delivered to the Trustee shall state that this Indenture
    or such supplemental indenture (or financing statement or notice or memorandum thereof) has been received for record or filing
    in each jurisdiction in which it is required to be recorded or filed and that, in the opinion of counsel (if such is the case),
    such receipt for record or filing makes effective the lien intended to be created by this Indenture or such supplemental indenture,
    and (2) such opinion is delivered to the Trustee within such time, following the date of the execution and delivery of
    this Indenture or such supplemental indenture, as shall be practicable having due regard to the number and distance of the
    jurisdictions in which this Indenture or such supplemental indenture is required to be recorded or filed.	 	Opinion of Counsel on recording and filing
	 	 	 
	(b) 
    On or before October 1 of each year, beginning October 1, 1989, an Opinion of Counsel either stating that in the
    opinion of such counsel such action has been taken, since the date of the most recent Opinion of Counsel furnished pursuant
    to this subdivision (b) or the first Opinion of Counsel furnished pursuant to subdivision (a) of this Section, with
    respect to the recording, filing, rerecording, and re-filing of this instrument and of each indenture supplemental to this
    instrument (or financing statement or notice or memorandum thereof), as is necessary to maintain the Lien hereof, and reciting
    the details of such action, or stating that in the opinion of such counsel no such action is necessary to maintain such lien.	 	Annual Opinion of Counsel on maintenance of Lien
	 	 	 
	The
    Company hereby covenants that it will execute and deliver such supplemental indenture or indentures and such further instruments
    and do such further acts as may be necessary or proper to carry out more effectually the purposes of this Indenture and to
    make subject to the Lien hereof any property hereafter acquired, made or constructed, intended	 	Instruments
        of further assistance.

         

 

     

    	 	62	 

    

 

 

	 	 	§§9.09, 9.10
	 	 	 
	 	 	to be subject to the
    Lien hereof, and to transfer to any new trustee or trustees or co-trustee or co-trustees, the estate, powers, instruments
    or funds held in trust hereunder.
	 	 	 
	Company to furnish Trustee list of bondholders
    semi-annually unless Trustee also registrar and transfer agent.	 	Section 9.10     (a) The
    Company covenants and agrees that it will furnish or cause to be furnished to the Trustee between February 15 and March 1
    and between August 15 and September 1, in each year after the calendar year 1988, and at such other times as the
    Trustee may request in writing, a list in such form as the Trustee may reasonably require containing all the information in
    the possession or control of the Company or of its paying agents, as to the names and addresses of the holders of bonds obtained
    since the date as of which the next previous list, if any, was furnished. Any such list may be dated as of a date not more
    than fifteen (15) days prior to the time such information is furnished or caused to be furnished, and need not include information
    received after such date; and, provided, that the Company need not furnish or cause to be furnished any such list with respect
    to bonds with respect to which the Trustee maintains the books for the registration and transfer of bonds as provided for
    in Section 2.09 hereof.
	 	 	 
	Preservation of bondholders list	 	(b) 
    The Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses
    of the holders of bonds (1) contained in the most recent list, if any, furnished to it as provided in subdivision (a) of
    this Section, (2) received by it in the capacity of paying agent hereunder, and (3) filed with it within two preceding
    years pursuant to the provisions of paragraph (2) of subdivision (c) of Section 19.13 hereof. The Trustee may
    (1) destroy any list furnished to it as provided in subdivision (a) of this Section upon receipt of a new list
    so furnished; (2) destroy any information received by it as paying agent upon delivery to itself as Trustee, not earlier
    than forty-five (45) days after an interest payment date of the bonds, of a list containing the names and addresses of the
    holders of bonds obtained from such information since the delivery of the next previous list, if any; (3) destroy any
    list delivered to itself as Trustee which was compiled from information received by it as paying agent upon the receipt of
    a new list so delivered; and (4) destroy any information received by it pursuant to the provisions of paragraph (2) of
    subdivision (c) of Section 19.13 hereof, but not until two years after such information has been filed with it.
	 	 	 
	Bondholders list to be available to bondholders	 	(c) 
    In case three or more holders of bonds (hereinafter referred to as “Applicants”) apply in writing to the Trustee,
    and furnish to the

 

     

    	 	63	 

    

 

	§9.10	 	 
	 	 	 
	Trustee reasonable
    proof that each such Applicant has owned a bond for a period of at least six months preceding the date of such application,
    and such application states that the Applicants desire to communicate with other holders of bonds with respect to their rights
    under this Indenture or under the bonds, and is accompanied by a copy of the form of proxy or other communication which such
    Applicants propose to transmit, then the Trustee shall, within five (5) business days after the receipt of such application,
    at its election either	 	 
	 	 	 
	(1) 
        afford to such Applicants access to the information preserved at the time by the Trustee in accordance with the provisions
        of subdivision (b) of this Section; or

         

        (2) 
        inform such Applicants as to the approximate number of holders of bonds whose names and addresses appear in the information
        preserved at the time by the Trustee, in accordance with the provisions of subdivision (b) of this Section, and as
        to the approximate cost of mailing to such bondholders the form of proxy or other communication, if any, specified in
        such application.
	 	 
	 	 	 
	If the Trustee shall
    elect not to afford to such Applicants access to such information, the Trustee shall, upon the written request of such Applicants,
    mail to each bondholder whose name and address appears in the information preserved at the time by the Trustee in accordance
    with the provisions of subdivision (b) of this Section, a copy of the form of proxy or other communication which is specified
    in such request, with reasonable promptness after a tender to the Trustee of the material to be mailed and of payment or provision
    for the payment of the reasonable expenses of mailing, unless within five days after such tender the Trustee shall mail to
    such Applicants and file with the Securities and Exchange Commission together with a copy of the material to be mailed a written
    statement to the effect that, in the opinion of the Trustee, such mailing would be contrary to the best interests of the holders
    of bonds, or would be in violation of applicable law. Such written statement shall specify the basis of such opinion. If said
    Commission, after opportunity for a hearing upon the objections specified in the written statement so filed, shall enter an
    order refusing to sustain any of such objections, or if said Commission shall find, after notice and opportunity for a hearing,
    that all the objections so sustained have been met and shall enter an order so declaring, the Trustee shall mail copies of
    such material to all such bondholders with reasonable promptness after the entry of such order	 	Trustee to mail communications to bondholders.

 

     

    	 	64	 

    

 

	 	 	§§9.10, 9.11
	 	 	 
	 	 	and the renewal of
    such tender; otherwise the Trustee shall be relieved of any obligation or duty to such Applicants respecting their application.
	 	 	 
	 	 	(d) 
    Neither the Trustee nor any paying agent shall be held account-able by reason of the disclosure of information as to names
    and addresses or the mailing of any material pursuant to any request made under subdivision (c) of this Section.
	 	 	 
	Filings with Trustee	 	Section 9.11     The
    Company covenants and agrees:
	 	 	 
	 	 	(1) 
    to file with the Trustee within fifteen (15) days after the Company is required to file the same with the Securities and Exchange
    Commission, copies of the annual reports and of the information, documents, and other reports (or copies of such portions
    of any of the foregoing as such Commission may from time to time by rules and regulations prescribe) which the Company
    may be required to file with such Commission pursuant to Section 13 or Section 15(d) of the Securities Exchange
    Act of 1934, as amended; or, if the Company is not required to file information, documents, or reports pursuant to either
    of such sections, then to file with the Trustee and the Securities and Exchange Commission, in accordance with rules and
    regulations prescribed from time to time by said Commission, such of the supplementary and periodic information, documents,
    and reports which may be required pursuant to Section 13 of the Securities Exchange Act of 1934, as amended, in respect
    of a security listed and registered on a national securities exchange as may be prescribed from time to time in such rules and
    regulations;
	 	 	 
	 	 	(2) 
    to file with the Trustee and the Securities and Exchange Commission, in accordance with the rules and regulations prescribed
    from time to time by said Commission, such additional information, documents and reports with respect to compliance by the
    Company with the conditions and covenants provided for in this Indenture as may be required from time to time by such rules and
    regulations, including, in the case of annual reports, if required by such rules and regulations, certificates or opinions
    of independent public accountants, conforming to the requirements of Section 22.05 hereof, as to compliance with conditions
    or covenants, compliance with which is subject to verification by accountants, but no such certificate or opinion shall be
    required as to (A) dates or periods not covered by annual reports required to be filed by the Company, in the case of
    conditions precedent which depend upon a state of facts as of a date

 

     

    	 	65	 

    

 

	§§9.11,
    9.12, 9.13	 	 
	 	 	 
	or
    dates or for a period or periods different from that required to be covered by such annual reports, or (B) the amount
    and value of Property Additions, except as provided in Section 5.06 hereof, or (C) the adequacy of depreciation,
    maintenance, or repairs; and	 	 
	 	 	 
	(3) 
    to transmit to the holders of bonds, in the manner and to the extent provided in subdivision (c) of Section 19.13
    hereof with respect to reports pursuant to subdivision (a) of Section 19.13 hereof, such summaries of any information,
    documents and reports required to be filed by the Company pursuant to subdivisions (1) and (2) of this Section as
    may be required by the rules and regulations prescribed from time to time by the Securities and Exchange Commission.	 	Summaries to bondholders
	 	 	 
	Section 9.12     The
    Company hereby covenants that books of record and account will be kept in which full, true and correct entries will be made
    of all dealings of or transactions of, or in relation to, the plants, properties, business and affairs of the Company.	 	True and correct entries to books of record and
    account.
	 	 	 
	The
    Company hereby covenants that it will not issue, or permit to be issued, any bonds hereunder in any manner other than in accordance
    with the provisions of this Indenture and that it will faithfully observe and perform all the conditions, covenants and requirements
    of this Indenture and of all indentures supplemental hereto and of the bonds issued hereunder.	 	 
	 	 	 
	Section 9.13     The
    Company hereby covenants that it will promptly advise the Trustee in writing of any failure to pay interest upon or principal
    (whether at maturity as therein expressed or by declaration, or otherwise) of any Outstanding Qualified Lien Bonds or Class “A”
    Bonds continuing beyond the period of grace, if any, specified in the Qualified Lien or Class “A” Mortgage
    securing the same.	 	Company to advise Trustee of certain defaults
    on Qualified Lien or Class “A” Bonds
	 	 	 
	The
    Company hereby covenants that upon the cancellation and discharge of any Qualified Lien securing Qualified Lien Bonds it will
    (unless the Qualified Lien Bonds, cash, proceeds and other property mentioned in subdivisions (a) and (b) below
    are thereupon otherwise disposed of as required by another Qualified Lien) cause	 	Upon discharge of Qualified Lien Company will
    cause:
	 	 	 
	(a) 
        any Qualified Lien Bonds deposited with and then held by the trustee or other holder of such Qualified Lien cancelled
        and discharged, to be cancelled and notification thereof to be given to the Trustee, or, at the option of the Company,
        to be delivered to and deposited with the Trustee hereunder; and
	 	(a)
       Such Qualified Lien Bonds to be cancelled,  etc.

 

     

    	 	66	 

    

 

	 	 	§9.13
	 	 	 
	(b) Transfer of deposits	 	(b) 
    all cash which (after giving effect to the provisions of Section 13.06 hereof) is then deemed to be Funded Cash and all
    obligations secured by purchase money mortgages and all proceeds of insurance on, or of the release of, or the taking by eminent
    domain of, or the purchase by a governmental authority or its designee of, Funded Property, deposited with and then held by
    the trustee or other holder of such Qualified Lien cancelled and discharged (including as to all of the foregoing all proceeds
    of or substitutes for any thereof then held as aforesaid), to be paid and/or delivered to and/or deposited with the Trustee
    hereunder, to be held as part of the Mortgaged and Pledged Property;
	 	 	 
	 	 	any
    such Qualified Lien Bonds constituting a part thereof to be held and disposed of under the provisions of Article X
    hereof; any such cash and/or obligations secured by purchase money mortgages on property released (including any proceeds or
    substitutes therefor) constituting a part thereof to be paid over, withdrawn, used or applied, in the manner, to the extent,
    and for the purposes and subject to the conditions provided in Section 13.06 hereof and with respect to cash and
    obligations secured by purchase money mortgages deposited under the provisions of Section 13.03 hereof; any bonds issued
    hereunder deposited with and then held by the trustee or other holder of such Qualified Lien cancelled and discharged, to be
    cancelled by the Trustee; and any other property constituting a part thereof to be subject to use and release as provided
    with respect to such property in Article XIII hereof.
	 	 	 
	Company will not permit the amount of Qualified
    Lien Bonds to be increased; exceptions:	 	The
    Company hereby covenants that it will not permit the amount of Qualified Lien Bonds to be increased by the issue of additional
    Qualified Lien Bonds unless (1) the Qualified Lien Bonds representing such increase shall be issued upon transfer of,
    or in exchange for, or in lieu of Outstanding Qualified Lien Bonds on the exercise by a holder or holders of such Outstanding
    Qualified Lien Bonds of the right granted by the Qualified Lien securing such Qualified Lien Bonds to have such bonds issued
    or (2) the Qualified Lien Bonds representing such increase shall be deposited with the Trustee to be held under the provisions
    of Article X hereof and/or unless such Qualified Lien Bonds representing such increase shall be deposited with the trustee
    or other holder of a Qualified Lien (under conditions such that no transfer of ownership or possession of such Qualified Lien
    Bonds representing such increase by the trustee or other holder of such Qualified Lien is permissible except upon a default

 

     

    	 	67	 

    

 

	§9.13	 	 
	 	 	 
	thereunder,
        or except to the Trustee hereunder to be held subject to the provisions of Article X hereof, or to the trustee or
        other holder of a Qualified Lien for cancellation, or to be held uncancelled under the terms of a Qualified Lien under
        like conditions); that it will not apply under any provision of this Indenture for the authentication and delivery of
        any bonds or the withdrawal of cash or the release of property by reason of the deposit with the Trustee of such Qualified
        Lien Bonds representing such increase; and that it will not apply under any provision of any Qualified Lien (i) for
        the withdrawal of cash (which, after giving effect to the provisions of Section 13.06 hereof, is then deemed to be
        Funded Cash) held by the trustee or other holder of such Qualified Lien on the basis of Funded Property, unless such cash
        so withdrawn shall be deposited with the Trustee hereunder, to be held as part of the Mortgaged and Pledged Property,
        and to be withdrawn, used or applied in the manner, to the extent, and for the purposes and subject to the conditions
        provided in Section 13.06 hereof with respect to cash deposited under the provisions of Section 13.03 hereof,
        or (ii) for the release of obligations secured by purchase money mortgage (the proceeds of which, after giving effect
        to the provisions of Section 13.06 hereof, would then be deemed to be Funded Cash) held by the trustee or other holder
        of such Qualified Lien on the basis of Funded Property, unless such obligations so released shall be delivered to the
        Trustee hereunder, to be held as part of the Mortgaged and Pledged Property, and to be released and otherwise dealt with,
        in the manner, to the extent, and for the purposes and subject to the conditions provided in Section 13.06 hereof
        with respect to obligations secured by purchase money mortgage received by the Trustee in consideration of the release
        of property.
	 	Conditions
    on withdrawal of cash or release of obligations held under Qualified Lien
	 	 	 
	The
    Company hereby covenants that, upon the cancellation and discharge of any other lien prior hereto (upon property subject to
    the Lien hereof), securing indebtedness, other than Qualified Lien Bonds, the Company will cause all cash, purchase money
    obligations and other property then held by the trustee or other holder of such lien, which were received by such trustee
    or other holder by reason of the release of, or the purchase by a governmental authority or its designee of, or which represents
    the proceeds of the taking by eminent domain of, or insurance on, any of the Mortgaged and Pledged Property (including all
    proceeds of or substitution for any thereof) to be paid and/or delivered to and/or deposited with the Trustee hereunder, to
    be held as part of the Mortgaged and Pledged Property, any such cash and/or purchase money obligations	 	Deposit
    with Trustee of certain property upon discharge of prior lien.

 

     

    	 	68	 

    

 

	 	 	§§9.13, 9.14; Art.
    X, §10.01
	 	 	 
	 	 	constituting a part
    thereof to be paid over, withdrawn, used or applied in the manner, to the extent, and for the purposes and subject to the
    conditions provided in Section 13.06 hereof with respect to cash and purchase money obligations deposited under the provisions
    of Section 13.03 hereof, and any other property constituting a part thereof to be subject to use and release as provided
    with respect to such property in Article XIII hereof.
	 	 	 
	 	 	Nothing
    in this Indenture contained shall be deemed to limit the right of any successor to the Company under the provisions of Article XVIII
    hereof which shall not have caused this Indenture or any indenture executed as in Section 18.02 hereof provided to become
    a lien upon any of the properties or franchises of the successor corporation except as contemplated by clauses (a), (b) and
    (c) of Section 18.03 hereof to increase the indebtedness secured by lien upon any of its properties or franchises
    not subject to the Lien of this Indenture or of any such indenture executed as in Section 18.02 hereof provided.
	 	 	 
	Annual Certificate of No Default	 	Section 9.14     The
    Company hereby covenants that it will deliver to the Trustee, on or before October 1, 1989 and each October 1
    thereafter, a written statement (which need not comply with Section 22.05 hereof) signed by an Authorized Executive Officer
    of the Company, and by its Secretary or an Assistant Secretary or an Authorized Financial Officer of the Company, stating,
    as to each signer thereof, that, to the best of his or her knowledge, the Company has fulfilled all its obligations under
    this Indenture throughout the preceding calendar year, or, if there has been a default in the fulfillment of any such obligation,
    specifying each such default known to him or her and the nature and status thereof.
	 	 	 
	 	 	Article X

    Concerning Bonds Secured by Lien Prior to

    the Lien Hereof Deposited with Trustee
	 	 	 
	Requirements upon deposit of prior lien bonds.	 	Section 10.01     Each
    bond secured by lien prior hereto, upon property subject to the Lien hereof, in coupon form deposited with the Trustee shall
    be accompanied by all unmatured coupons when so deposited, or shall be accompanied by evidence satisfactory to the Trustee
    (which may be a certificate of the mortgagee or trustee under the lien prior hereto securing the same) that the discharge
    of the lien securing such bond may be obtained without the production of any coupon or 

 

     

    	 	69	 

    

 

	§§10.01,
    10.02	 	 
	 	 	 
	coupons that may be
    missing; and each bond secured by any such lien prior hereto so deposited shall be uncancelled. Each bond secured by any such
    lien prior hereto deposited hereunder shall be in bearer form or accompanied by appropriate instruments of transfer; and the
    Trustee may cause any or all registered bonds deposited under this Article X to be registered in its name as Trustee,
    or otherwise, or in the name or names of its nominee or nominees.	 	 
	 	 	 
	Section 10.02     All
    bonds secured by lien prior hereto, upon property subject to the Lien hereof, received by the Trustee for the purpose of this
    Article X shall be held by the Trustee, as part of the Mortgaged and Pledged Property and without impairment of the lien
    thereof, for the protection and further security of the bonds issued hereunder. Except during the continuance of a Default,
    no payment by way of principal, interest or otherwise on any of the bonds secured by any such lien prior hereto held by the
    Trustee shall be made or demanded and the coupons (if any) thereto appertaining as they mature shall be cancelled by the Trustee
    and delivered so cancelled to the Company, unless the Company shall, by an instrument in writing, signed by an Authorized
    Executive Officer of the Company, and by its Secretary or an Assistant Secretary or an Authorized Financial Officer of the
    Company, and delivered to the Trustee, elect with respect to any of such bonds, to have such payments made and demanded, in
    which event the Company shall, subject to the provisions hereinafter in this Section contained, be entitled to receive
    all such payments. In any event, except during the continuance of a Default as aforesaid, all cash received by the Trustee
    (a) on account of the principal of or interest or premium on said bonds, or (b) by reason of the sale or delivery
    of any of said bonds to the sinking fund or other similar device for the retirement of bonds provided for in any lien securing
    the same (as to both (a) and (b) above, to the extent that an Officers’ Certificate delivered to the Trustee
    shall state that such cash is not cash which, after giving effect to the provisions of Section 13.06 hereof, is then
    deemed to be Funded Cash), shall be paid over by the Trustee to or upon the order of the Company; provided that, in the absence
    of such statement, the same shall be retained by the Trustee and held as part of the Mortgaged and Pledged Property, to be
    withdrawn, used or applied, in the manner, to the extent, and for the purposes, and subject to the conditions provided in
    Section 13.06 hereof with respect to cash deposited under the provisions of Section 13.03 hereof.	 	Prior
        lien bonds deposited with Trustee part of Mortgaged and Pledged Property.

         

        No
        payment of principal or interest except in Default

 

     

    	 	70	 

    

 

	 	 	§10.03
	 	 	 
	Conditions on cancellation or sale of prior lien
    bonds by Trustee	 	Section 10.03     Except
    during the continuance of a Default, the Trustee, on the written request of the Company, signed by an Authorized Executive
    Officer of the Company, and by its Secretary or an Assistant Secretary or an Authorized Financial Officer of the Company,
    shall cause any bonds secured by lien prior hereto, upon property subject to the Lien hereof, held by it under this Article X
    to be cancelled, and the obligation thereby evidenced to be satisfied and discharged; provided, however, that it shall have
    received notice from the trustee or other holder of the lien securing the same that such trustee or other holder, on receipt
    of the bonds so held by the Trustee, will cause the lien securing the same to be satisfied and discharged of record; and provided,
    further, that the Trustee shall not be required to cause any bonds so held by it to be cancelled or to be surrendered for
    cancellation pursuant to the foregoing provisions of this Section, unless and until the Trustee shall have received an Opinion
    of Counsel to the effect that there is no outstanding lien (other than Excepted Encumbrances) covering any part of the Mortgaged
    and Pledged Property upon which such lien exists junior to such lien and senior to the Lien hereof. Upon similar request the
    Trustee shall sell (on such terms as the Company shall designate) or surrender any bonds held by it subject to this Article X
    to the trustee or other holder of the lien securing the same to be held uncancelled for the purposes of any improvement or
    sinking fund or other similar device for the retirement of bonds for which provision may have been made in the lien securing
    the bonds so sold or surrendered, or for cancellation, provided, however, that no such bonds shall be sold or surrendered
    except for cancellation as aforesaid until the Trustee shall have received an Opinion of Counsel to the effect (a) that
    the provisions of the lien securing the bonds so to be sold or surrendered are such that no transfer of ownership or possession
    of such bonds by the trustee or other holder of such lien is permissible thereunder except upon default thereunder or except
    to the Trustee hereunder, to be held subject to the provisions of this Article X, or to the trustee or other holder of
    any such lien prior hereto, for cancellation or to be held uncancelled under the terms of a lien prior hereto, upon property
    subject to the Lien hereof, under like conditions, or (b) that all of the property subject to the lien, with respect
    to which such bonds have been deposited with the Trustee, has been released from the Lien of this Indenture, which shall be
    stated in any event if such be the fact; and provided further that if all of the property subject to any lien securing bonds
    deposited under this Article X shall have been released from the Lien of this Indenture, such bonds as shall thereupon
    

 

     

    	 	71	 

    

 

	§§10.03,
    10.04	 	 
	 	 	 
	cease to be bonds
    secured by property subject to the Lien of this Indenture shall be surrendered forthwith by the Trustee to the Company upon
    its written request signed by an Authorized Executive Officer of the Company, and by its Secretary or an Assistant Secretary
    or an Authorized Financial Officer of the Company.	 	 
	 	 	 
	Prior
    to any sale or surrender of bonds by the Trustee in accordance with the foregoing provisions of this Section, there shall
    be delivered to the Trustee an Engineer’s Certificate, made and dated not more than ninety (90) days prior to the date
    of the Company’s request for such sale or surrender, stating the fair value, in the opinion of the signers, of the bonds
    to be sold or surrendered, and stating that, in the opinion of the signers, the release thereof will not impair the security
    under this Indenture in contravention of the provisions hereof.	 	 
	 	 	 
	On
    the request of the Company evidenced by an Officers’ Certificate, the Trustee shall permit the extension of the maturity
    of and/or any other modification of any bonds (other than Class “A” Bonds or any other bonds of which the
    Company is the obligor) held by the Trustee subject to the provisions of this Article X and/or any modification of a
    lien prior to the Lien hereof.	 	Modification of terms of prior lien bonds
	 	 	 
	Section 10.04     Upon
    the occurrence of any Default, the Trustee may exercise any and all rights of a bondholder with respect to the bonds then
    held by it under this Article X (other than the right to sell or otherwise alienate Class “A” Bonds
    or other bonds of which the Company is the obligor so as to increase the aggregate of the Company’s debt) or may take
    any other action which shall in its judgment be desirable or necessary to avail itself of the security created for such bonds
    by the liens securing the same.	 	Rights of Trustee upon Default

 

     

    	 	72	 

    

 

	 	 	Art. XI, §§11.01,
    11.02, 11.03
	 	 	 
	 	 	Article XI

    Concerning Class “A” Bonds and Additional

    Class “A” Mortgages
	 	 	 
	Concerning payments on Class “A”
    Bonds	 	Section 11.01     The
    Trustee shall notify the trustees of the Class “A” Mortgages securing Class “A” Bonds held
    hereunder that no payments are to be made on such held Class “A” Bonds unless a Default hereunder has occurred
    and is continuing and that the Trustee will notify such trustees of any such Default.
	 	 	 
	Concerning deposit of Class “A”
    Bonds	 	Section 11.02     Each
    Class “A” Bond deposited with the Trustee pursuant to Section 4.01 hereof shall be (1) in bearer
    form, (2) registered in the name of the Trustee or its nominee or (3) accompanied by appropriate instruments of
    transfer. Each such Class “A” Bond in coupon form so deposited shall be accompanied by all unmatured coupons
    when so deposited and each such Class “A” Bond so deposited shall be uncancelled. The Trustee may cause any
    or all registered Class “A” Bonds to be registered in the name of the Trustee, or in the name or names of
    its nominee or nominees.
	 	 	 
	Voting of Class “A” Bonds held
    by Trustee	 	Section 11.03     Unless
    the Company is in default in the payment of the interest on any bonds then Outstanding hereunder or one or more Defaults shall
    have occurred and be continuing:
	 	 	 
	 	 	(a) 
        the Trustee shall vote all bonds issued under the Pacific Mortgage then held by it, or consent with respect thereto, in
        favor of any or all amendments or modifications of the Pacific Mortgage of substantially the same tenor and effect as
        any or all of those set forth in Exhibit X to this Indenture;

         

        (b) 
        the Trustee shall vote all bonds issued under the Utah Mortgage then held by it, or consent with respect thereto, in favor
        of any or all amendments or modifications of the Utah Mortgage of substantially the same tenor and effect as any or all
        of those set forth in Exhibit Y to this Indenture; and

         

        (c) 
        with respect to any other amendments or modifications of a Class “A” Mortgage, the Trustee shall vote
        all Class “A” Bonds Outstanding under said Mortgage and then held by it, or consent with respect thereto,
        proportionately with the vote or consent of the holders of all other Class “A” Bonds then voting in person
        or by proxy or consenting in writing under the Class “A” Mortgage (other than

 

     

    	 	73	 

    

 

	§§11.03,
    11.04, 11.05, 11.06	 	 
	 	 	 
	Class “A”
    Bonds similarly either deposited or pledged); provided, however, if the Class “A” Bonds held by the Trustee
    are more adversely affected than any Class “A” Bonds not so held, then the Trustee need not so vote without
    the consent in writing of the holders of a majority in principal amount of the bonds Outstanding hereunder.	 	 
	 	 	 
	Section 11.04     The
    Company covenants that it will not issue any additional Class “A” Bonds except to the Trustee hereunder or,
    as permitted by the provisions of the applicable Class “A” Mortgage, to replace Class “A”
    Bonds at the time Outstanding.	 	Concerning issue of additional Class “A”
    Bonds
	 	 	 
	Section 11.05     The
    Company covenants that it will not issue any additional Class “A” Bonds under any provision of any Class “A”
    Mortgage that permits the issuance of new first mortgage bonds on the basis of first mortgage bonds retired (e.g., Section 29
    of the Pacific Mortgage or Section 29 of the Utah Mortgage), except for delivery to the Trustee pursuant to the provisions
    of Section 4.01 hereof as the basis for the authentication and delivery of bonds hereunder in connection with which an
    Officers’ Certificate is delivered to the Trustee stating that such bonds are to be issued to refund bonds issued hereunder
    on the basis of such Class “A” Bonds retired, or to refund Class “A” Bonds issued by PacifiCorp,
    an Oregon corporation, or by its predecessors, PacifiCorp, a Maine corporation (earlier known as Pacific Power &
    Light Company), or Utah Power & Light Company, a Utah corporation, or its predecessor, Utah Power & Light
    Company, a Maine corporation, prior to the merger of those corporations into the Company, or to refund bonds hereinafter designated
    as Class “A” Bonds issued by any corporation prior to its merger into or consolidation with the Company hereafter.	 	Conditions for issuance of additional Class “A”
    Bonds
	 	 	 
	Section 11.06     (I) 
    In the event that a corporation which was the mortgagor under a mortgage or deed of trust or similar indenture qualified under
    the Trust Indenture Act is hereafter merged into or consolidated with the Company, such mortgage, deed of trust or similar
    indenture may be designated an additional Class “A” Mortgage hereunder, upon delivery to the Trustee of the
    following:	 	Designation
        of additional Class “A” Mortgages

         

        Requirements:

	 	 	 
	(a) 
    a Resolution authorizing the designation of such mortgage, deed of trust or similar indenture as an additional Class “A”
    Mortgage hereunder;	 	(a) Resolution

 

     

    	 	74	 

    

 

	 	 	§11.06
	 	 	 
	(b) Officers’ Certificate	 	(b) 
    an Officers’ Certificate complying with the requirements of Section 22.05 hereof, (i) stating that the Company
    is not in default under such mortgage, deed of trust or similar indenture, (ii) reciting the aggregate principal amount
    of bonds theretofore issued under such mortgage, deed of trust or similar indenture and the aggregate principal amount of
    bonds then outstanding thereunder, and (iii) either (x) stating that all bonds outstanding under such mortgage,
    deed of trust or similar indenture that were issued on the basis of property additions were issued in principal amounts that
    did not exceed seventy per centum (70%) of the balance of the cost or fair value of such property additions to the issuer
    of such bonds (whichever was less) after making deductions and additions similar to those provided for in Section 1.04
    hereof or in Section 4 of the Pacific Mortgage or in Section 4 of the Utah Mortgage, or (y) in the event that
    the foregoing clause (x) is not the case, stating that the Company has (by the certification of the requisite amounts
    of previously unfunded property additions as set forth in an Engineer’s Certificate in the form prescribed by subsection
    28(3) of the Pacific Mortgage or subsection 28(3) of the Utah Mortgage or the comparable section of such other mortgage,
    deed or trust or similar indenture) irrevocably waived its right to the authentication and delivery of further bonds under
    such mortgage, deed of trust or similar indenture in a principal amount equal to the difference between the aggregate dollar
    amount of property additions certified to the trustee under such mortgage, deed of trust or similar indenture as the basis
    for all bonds outstanding thereunder that were issued on the basis of property additions (and outstanding bonds issued on
    the basis of retirements of bonds issued on the basis of property additions) and ten-sevenths (10/7ths) of the aggregate principal
    amount of all such outstanding bonds; and
	 	 	 
	(c) Opinion of Counsel	 	(c) 
    an Opinion of Counsel complying with the requirements of Section 22.05 hereof, stating the signer’s opinion to
    the effect that: (i) the corporation that was the mortgagor under such mortgage, deed of trust or similar indenture has
    been duly and lawfully merged into or consolidated with the Company; (ii) such mortgage, deed of trust or similar indenture
    is qualified under the Trust Indenture Act; (iii) the Company has duly assumed and agreed to perform and pay the obligations
    of the mortgagor under such mortgage, deed of trust or similar indenture; (iv) such mortgage, deed of trust or similar

 

     

    	 	75	 

    

 

	§11.06	 	 
	 	 	 
	indenture,
    when designated a Class “A” Mortgage pursuant to the provisions of this Section 11.06, will constitute
    a lien upon the property described therein prior to the Lien hereof; (v) the Lien hereof will constitute a lien on the
    property described in such mortgage, deed of trust or similar indenture subject to no lien thereon prior or equal to the Lien
    of this Indenture except Qualified Liens, Excepted Encumbrances and the lien of such mortgage, deed of trust or similar indenture;
    (vi) the terms of such mortgage, deed of trust or similar indenture as then in effect do not permit the further issuance
    of bonds thereunder except on the basis of cash, property additions of a character substantially similar to those described
    in Section 1.04 hereof or in Section 4 of the Pacific Mortgage or in Section 4 of the Utah Mortgage, or the
    retirement of outstanding bonds; (vii) the terms of such mortgage, deed of trust or similar indenture as then in effect
    do not permit the further issuance of bonds thereunder upon the basis of property additions in a principal amount exceeding
    seventy per centum (70%) of the balance of the cost or the fair value thereof to the issuer thereunder (whichever shall be
    less) after making deductions and additions similar to those provided for in Section 1.04 hereof or in Section 4
    of the Pacific Mortgage or Section 4 of the Utah Mortgage; and (viii) that the indenture supplemental hereto referred
    to in subdivision (II) of this Section 11.06 complies with the requirements of clauses (i), (ii) and (iii) of
    said subdivision (II).	 	 
	 	 	 
	(II) 
    At such time as the Company and the Trustee have executed, and the Company has caused to be recorded, an indenture supplemental
    hereto (i) in which such mortgage, deed of trust or similar indenture has been designated as an additional Class “A”
    Mortgage, (ii) by which the Company has imposed the Lien of this Indenture upon properties (of the character defined
    in Section 1.04 hereof as Property Additions) acquired by the Company from such corporation by virtue of the merger or
    consolidation (and later improvements, extensions and additions thereto and renewals and replacements thereof) as contemplated
    by Section 18.03 hereof, and (iii) by which such mortgage, deed of trust or similar indenture has been amended to
    provide that a default thereunder shall include the existence of any “Default,” as defined under the Pacific Mortgage,
    or the existence of any “Default,” as defined under the Utah Mortgage, or the existence of any default under another
    Class “A”	 	Status of additional Class “A”
    Mortgages and additional Class “A” Bonds

 

     

    	 	76	 

    

 

	 	 	§11.06;
    Art. XII, §§12.01, 12.02
	 	 	 
	 	 	Mortgage, which then
    permits the declaration of the principal of all of the bonds secured by such Class “A” Mortgage and the interest
    accrued thereupon due and payable (provided that if such default or Default under such Class “A” Mortgage
    shall be remedied or cured by the Company or waived by the holders of such indebtedness, then the default under such mortgage,
    deed of trust or similar indenture by reason thereof shall be deemed likewise to have been thereupon remedied, cured or waived
    without further action upon the part of any party), then such mortgage, deed of trust or similar indenture and all bonds issued
    and outstanding thereunder shall for all purposes hereof be treated as a Class “A” Mortgage and as Class “A”
    Bonds to the full and same extent as if specifically identified in Section 1.02 hereof.
	 	 	 
	 	 	Article XII

    Redemption or Purchase of Bonds
	 	 	 
	What bonds redeemable	 	Section 12.01     Such
    of the bonds of any series issued hereunder as are, by their terms, redeemable before maturity, may, at the option of the
    Company or pursuant to the requirements of this Indenture be redeemed at such times, in such amounts and at such prices as
    may be specified therein and in accordance with the provisions of the three next succeeding Sections numbered from 12.02 to
    12.04, both inclusive.
	 	 	 
	Redemption of part of any series; selection	 	Section 12.02     If
    less than all the Outstanding bonds of any series are to be redeemed, the particular bonds to be redeemed shall be selected
    by the Trustee from the Outstanding bonds of such series which have not previously been called for redemption by such method
    as the Trustee shall deem fair and appropriate. Notwithstanding the foregoing, special provisions for the selection of the
    particular bonds to be redeemed within a particular series may be provided by a supplemental indenture to this Indenture.
	 	 	 
	Notice	 	Unless
    otherwise established in accordance with Section 2.03 with respect to a particular series of bonds, notice of redemption
    to owners and/or holders of any bonds which are not registered as to both principal and interest or as to only principal shall
    be given, by or on behalf of the Company, by publication in one Daily Newspaper of general circulation in the Borough of Manhattan,
    The City of New York, and in one Daily Newspaper of general circulation in the City of Portland, Oregon, once before the date
    fixed for redemption, the publication to be at least thirty

 

     

    	 	77	 

    

 

	§12.02	 	 
	 	 	 
	(30) days prior to
    the date fixed for redemption. If less than all bonds of any particular series are to be redeemed, unless otherwise provided
    as to a particular series of bonds, the numbers of any bonds to be redeemed which are not so registered shall be included
    in such notice and may be stated: individually; in groups from one number to another number, both inclusive, except such as
    shall have been previously called for redemption or otherwise retired; or in any other way satisfactory to the Trustee.	 	 
	 	 	 
	Unless
    otherwise so provided as to a particular series of bonds, notice of redemption to the registered owner of any bond registered
    as to principal and interest or as to principal only which is to be redeemed in whole or part shall be mailed by or on behalf
    of the Company, not less than thirty (30) days before the date fixed for redemption, to him, her or it, at his, her or its
    last address appearing upon the registry books.	 	Notice to be mailed at least thirty days before
    redemption
	 	 	 
	Failure
    duly to give such notice by publication and/or by mailing to the owner or holder of any bond designated for redemption in
    whole or in part shall not affect the validity of the proceedings for the redemption of any other bond.	 	Failure to give notice does not effect validity
	 	 	 
	Unless
    otherwise so provided as to a particular series of bonds, if at the time of publication or mailing of any notice of redemption
    the Company shall not have deposited with the Trustee and/or irrevocably directed the Trustee to apply, from money held by
    it available to be used for the redemption of bonds, an amount in cash sufficient to redeem all of the bonds called for redemption,
    including accrued interest to such date fixed for redemption, such notice shall state that it is subject to the receipt of
    the redemption moneys by the Trustee before the date fixed for redemption (unless such redemption is mandatory) and such notice
    shall be of no effect unless such moneys are so received before such date.	 	Redemption may be conditional on deposit of
    moneys
	 	 	 
	The
    Trustee, upon the request of the Company evidenced by a Resolution delivered to the Trustee at least fifteen (15) days prior
    to the date on which notice of redemption must first be published or mailed (unless a shorter notice shall be accepted by
    the Trustee as sufficient) shall, for and on behalf of and in the name of the Company, call for redemption bonds secured hereby
    (whether or not the Trustee shall hold at the time of such call cash sufficient for such redemption) provided that, if cash
    sufficient for such purpose is not so held and such redemption is not mandatory, the notice shall state that it is subject
    to the receipt of the redemption moneys by the Trustee before the date fixed for	 	 

 

     

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	 	 	§§12.02, 12.03, 12.04,
    12.05
	 	 	 
	 	 	redemption and such
    notice shall be of no effect unless such moneys are so received before such date.
	 	 	 
	Deposit of redemption price with Trustee	 	Section 12.03     Publication
    of the notice of redemption, if required, having been completed as above provided, or if mailing is required, notice of redemption
    having been mailed, as in Section 12.02 hereof provided, and the Company having before the redemption date specified
    in the notice of redemption deposited with the Trustee (and/or having irrevocably directed the Trustee to apply, from money
    held by it available to be used for the redemption of bonds) an amount in cash sufficient to redeem all of the bonds called
    for redemption, including accrued interest, the bonds called for redemption shall become due and payable on such redemption
    date.
	 	 	 
	Moneys
        to be paid to respective holders upon surrender of bonds and unmatured coupons

         

         

        Bonds
        cease to bear interest
	 	Section 12.04     All
    moneys held by the Trustee for the redemption of bonds shall, subject to the provisions of Section 22.03 hereof, be held
    in trust for account of the holders of the bonds so to be redeemed, and shall be paid to them, respectively, upon presentation
    and surrender of said bonds, with (if required by the Company) all unmatured coupons, if any, appertaining thereto. Coupons
    maturing on or prior to the date fixed for redemption shall remain payable in accordance with their terms. On and after such
    date fixed for redemption, if the moneys for the redemption of the bonds to be redeemed shall be held by the Trustee for the
    purpose, such bonds shall cease to bear interest and shall cease to be entitled to the Lien of this Indenture and the coupons
    for interest, if any, maturing subsequent to the date fixed for redemption shall be void.
	 	 	 
	Redemption of portion of registered bond	 	If
    any fully registered bond shall be called for redemption in part only, the notice of redemption shall specify the principal
    amount thereof to be redeemed, and such fully registered bond shall be presented for cancellation properly endorsed for transfer
    (if required by the Company) at or after the date fixed for the redemption of said bonds so called for redemption, and thereupon
    the payment with respect to said bond shall be made upon surrender of said bond so endorsed (if required), and coupon bonds
    or fully registered bonds for the unpaid balance of the principal amount of the fully registered bond so presented and surrendered
    shall to the extent authorized be executed by the Company and authenticated and delivered by the Trustee without charge therefor
    to the holder thereof.
	 	 	 
	Purchase of bonds by Trustee	 	Section 12.05     At
    any time, upon the request of the Company, expressed by an Officers’ Certificate, the Trustee shall, to the extent that

 

     

    	 	79	 

    

 

	§§12.05,
    12.06	 	 
	 	 	 
	such bonds are available
    for such purchase, apply all or any part of the cash held by it under any provision of this Indenture, subject to the provisions
    of Sections 7.03 and 12.04 hereof, or any cash deposited with it by the Company for the purpose, to the purchase (including
    a purchase from the Company) of bonds then Outstanding hereunder of such series as the Company may designate. Before making
    any such purchase the Trustee may, and upon request of the Company shall, by notice mailed in accordance with the provisions
    of subdivision (c) of Section 19.13 hereof if all of the bonds then Outstanding hereunder of such series are registered
    or the addresses of the holders thereof are on file, otherwise published once in one Daily Newspaper of general circulation
    in the Borough of Manhattan, The City of New York, and in one Daily Newspaper of general circulation in the City of Portland,
    Oregon, advertise for written proposals (to be received by it on or before a specified date) to sell to it on or before a
    subsequent specified date bonds of the series designated by the Company then Outstanding hereunder; and the Trustee, to the
    extent, as nearly as is possible, of such funds then in its hands and requested by the Company to be so applied, shall purchase
    the bonds so offered at the price or prices most favorable to the Company, and reasonable notice shall be mailed by the Trustee
    to the holder or holders of the bonds whose proposals shall have been accepted. The Trustee shall, upon request of the Company,
    invite offers of bonds for sale to it in any other usual manner. The Trustee in its discretion may reject any or all proposals
    in whole or in part, and shall reject any or all proposals in whole or in part if on the same day after opening said proposals
    it has actual knowledge that it can purchase the requisite amount of such bonds or any part thereof at a price more favorable
    to the Company than it could by accepting said proposals. All offers by holders shall be subject to acceptance of a portion
    thereof unless otherwise expressed in the offers and all advertisements for written proposals shall so state. Nothing herein
    contained shall be deemed to prohibit the Company from purchasing or otherwise acquiring Outstanding bonds in any manner it
    may deem appropriate.	 	

         

         

         

         

         

        Notice

	 	 	 
	Section 12.06     All
    bonds issued hereunder paid, retired or redeemed under any of the provisions of this Indenture or purchased by the Trustee
    as provided in Section 12.05 hereof and all appurtenant coupons, if any, shall forthwith be cancelled by the Trustee.
    Unless the Company otherwise directs in writing, the Trustee shall periodically destroy any such cancelled coupon bonds and
    deliver to the Company a certificate of such destruction, and shall deliver any such cancelled fully registered bonds to the
    Company.	 	Retired bonds to be cancelled

 

     

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	 	 	Art. XIII,
    §§13.01, 13.02
	 	 	 
	 	 	Article XIII

    Possession, Use and Release of Mortgaged

    and Pledged Property
	 	 	 
	Company’s possession and enjoyment	 	Section 13.01     Unless
    one or more Defaults shall have occurred and be continuing, the Company shall be suffered and permitted to possess, use and
    enjoy the Mortgaged and Pledged Property (except such cash as is expressly required to be deposited with the Trustee and except,
    to the extent not herein otherwise provided, such securities as are expressly required to be deposited with the Trustee),
    and to receive, use and dispose of the tolls, rents, revenues, issues, earnings, income, products and profits thereof, with
    power in the ordinary course of business, freely and without let or hindrance on the part of the Trustee or of the bondholders,
    except as herein otherwise expressly provided to the contrary, to exercise any and all rights under choses in action, contracts,
    franchises and claims.
	 	 	 
	What Company may do without release or consent
    by Trustee	 	Section 13.02     Unless
    the Company is in default in the payment of the interest on any of the bonds then Outstanding hereunder or one or more Defaults
    shall have occurred and be continuing, the Company may at any time and from time to time, without any release or consent by,
    or report to, the Trustee:
	 	 	 
	(1)
       Sale of machinery equipment, tools, etc.	 	(1) 
    sell or otherwise dispose of, free from the Lien of this Indenture, any machinery, apparatus, equipment, frames, towers, poles,
    wire, pipe, tools, implements, or furniture, or any other fixtures or personalty, then subject to the Lien hereof, which shall
    have become old, inadequate, obsolete, worn out, unfit, unadapted, unserviceable, undesirable or unnecessary for use in the
    operations of the Company upon replacing the same by, or substituting for the same, machinery, apparatus, equipment, frames,
    towers, poles, wire, pipe, tools, implements, or furniture, or any other fixtures or personalty, of at least equal value to
    that of the property sold or otherwise disposed of and subject to the Lien hereof, subject to no liens prior hereto except
    liens to which the property sold or otherwise disposed of was subject;
	 	 	 
	(2)
       Cancellation, etc. of right of way grants	 	(2) 
    cancel or make changes or alterations in or substitutions of any and all right of way grants; and
	 	 	 
	(3)
       Surrender or modification of franchises	 	(3) 
    surrender or assent to the modification of any right, power, franchise, license, governmental consent or permit under which
    it may be operating, provided that, in the opinion of the Board of

 

     

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	§§13.02,
    13.03	 	 
	 	 	 
	Directors
    (such opinion to be stated in a Resolution to be filed with the Trustee), any such surrender or modification which affects
    the Mortgaged and Pledged Property is necessary or desirable in the conduct of the business of the Company.	 	 
	 	 	 
	Section 13.03     Unless
    the Company is in default in the payment of the interest on any bonds then Outstanding hereunder or one or more Defaults shall
    have occurred and be continuing, the Company may obtain the release of any of the Mortgaged and Pledged Property, except cash
    then held by the Trustee (provided, however, that Qualified Lien Bonds deposited with the Trustee shall not be released except
    as provided in Article X hereof and Class “A” Bonds deposited with the Trustee shall not be released
    except as provided in Article XIV hereof and obligations secured by purchase money mortgage deposited with the Trustee
    shall not be released except as provided in Section 13.06 hereof), and the Trustee shall release all its right, title
    and interest in and to the same from the Lien hereof upon the application of the Company and receipt by the Trustee of the
    following:	 	Release
        of property by Trustee

         

         

         

         

         

         

         

        Requirements:

	 	 	 
	(1) 
    an Officers’ Certificate complying with the requirements of Section 22.05 hereof and describing in reasonable detail
    the property to be released and requesting such release, and stating that the Company is not in default in the payment of
    the interest on any bonds then Outstanding hereunder and that no Default has occurred and is continuing;	 	(1) Officers’ Certificate
	 	 	 
	(2) 
    an Engineer’s Certificate, made and dated not more than ninety (90) days prior to the date of such application, stating:	 	(2) Engineer’s Certificate
	 	 	 
	(a) 
    that the Company has sold, leased, granted an interest in, exchanged, dedicated or disposed of, or intends or has agreed to
    sell, lease, grant an interest in, exchange, dedicate or dispose of, or that a governmental body or agency has lawfully ordered
    the Company to divest itself of, the property to be released;	 	 
	 	 	 
	(b) 
    the fair value and the Cost (or as to Property Additions constituting Funded Property of which the fair value to the Company
    at the time the same became Funded Property was less than the Cost as determined pursuant to Section 1.04 hereof, then such fair value in lieu of Cost), in the opinion of
the signers, of the property (or securities) to be released;	 	 
	 	 	 
	(c)  the
    Cost (or as to Property Additions of which the fair value to the Company at the time the same became Funded	 	 

 

     

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	 	 	§13.03
	 	 	 
	 	 	Property was less than the Cost as determined pursuant to Section 1.04 hereof, then such fair value in lieu of Cost), in the opinion of the signers, of any portion thereof (which shall be specified) that is Funded Property;

 

	 	 	(d)  that (except in any case where a governmental body or agency has lawfully ordered the Company to divest itself of such property) such release is in the opinion of the signers desirable in the conduct of the business of the Company;
	 	 	 
	 	 	(e)  the amount of cash and/or principal amount of obligations secured by purchase money mortgage received or to be received for any portion of said property sold to any Federal, State, County, Municipal or other governmental bodies or agencies or public corporations, districts or authorities; and
	 	 	 
	 	 	(f)  that in the opinion of the signers such release will not impair the security under this Indenture in contravention of the provisions hereof;
	 	 	 
	(3) Consideration	 	(3)  an amount in cash to be held by the Trustee as part of the Mortgaged and Pledged Property, equivalent to the amount, if any, by which the Cost (or as to Property Additions constituting Funded Property of which the fair value to the Company at the time the same became Funded Property was less than the Cost as determined pursuant to Section 1.04 hereof, then such fair value in lieu of Cost) of the property to be released, as specified in the Engineer’s Certificate provided for in subdivision (2) above, exceeds the aggregate of the following items:
	 	 	 
	 	 	(a)  the principal amount, subject to the limitations stated below in this subdivision (3), of any obligations delivered to the Trustee, to be held as part of the Mortgaged and Pledged Property, consisting of obligations secured by purchase money mortgage upon the property released;
	 	 	 
	 	 	(b)  the Cost or fair value to the Company (whichever is less) of any Property Additions made the basis of the application which are not then Funded Property (after making any deductions and any additions pursuant to the provisions of Section 1.04 hereof) as shown by a further Engineer’s Certificate (made and dated no more than ninety (90) days prior to the date of such application) delivered to the Trustee; provided, however, that Property Additions acquired, made or constructed within ninety

 

     

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	§13.03	 	 
	 	 	 
	(90) days prior to the date of such application for release, or subsequently thereto, may, at the option of the Company, not have deducted therefrom the deductions nor added thereto the additions pursuant to Section 1.04 hereof;	 	 
	 	 	 
	(c)  the aggregate principal amount of bonds to the authentication and delivery of which the Company shall be entitled under the provisions of Sections 5.04 or 6.01 hereof, by virtue of compliance with all applicable provisions of said Sections 5.04 or 6.01, as the case may be (except as hereinafter in this Section otherwise provided); provided, however, that (except as hereinafter in this Section otherwise provided) the application for such release shall operate as a waiver by the Company of such right to the authentication and delivery of such bonds on the basis of which right such property is released and to such extent no such bonds may thereafter be authenticated and delivered hereunder, and any bonds or Qualified Lien Bonds which have been made the basis of any such right to the authentication and delivery of bonds so waived shall be deemed to have been made the basis of the release of such property;	 	 
	 	 	 
	(d)  the principal amount, subject to the limitations stated below in this subdivision (3), of any obligations secured by purchase money mortgage upon the property to be released and/or any amount in cash, that is evidenced to the Trustee by a certificate of the trustee or other holder of a Qualified Lien or a lien (other than a Class “A” Mortgage) prior hereto, as the case may be, to have been received by it in accordance with the provisions of such Qualified Lien or lien prior hereto in consideration for the release of such property or any part thereof from such Qualified Lien or lien prior hereto;	 	 
	 	 	 
	(e)  the aggregate principal amount of any bonds Outstanding under this Indenture delivered to the Trustee; and	 	 
	 	 	 
	(f)  any taxes and expenses incidental to such sale, exchange, dedication or disposal;	 	 
	 	 	 
	provided, however, that (i) no obligations secured by purchase money mortgage upon any property being released from the Lien hereof	 	 

 

     

    	 	84	 

    

 

	 	 	§13.03
	 	 	 
	 	 	shall be used as a credit in any application for such release unless all obligations secured by such purchase money mortgage shall be delivered to the Trustee or to the trustee or other holder of a Qualified Lien or lien prior hereto; (ii) in case the total principal amount of obligations secured by purchase money mortgage upon property being released shall exceed seventy-five per centum (75%) of the fair value of such property, as specified in the Engineer’s Certificate provided for in subdivision (2) above, the aggregate credit which may be used pursuant to clause (a) and clause (d) of this subdivision (3) in respect of such obligations shall not exceed seventy-five per centum (75%) of the fair value of the property to be released, as specified in such Engineer’s Certificate; and (iii) no obligations secured by purchase money mortgage shall be used as a credit in any application for the release of property hereunder, if the aggregate credit in respect of such obligations to be used by the Company pursuant to clause (a) and clause (d) of this subdivision (3) plus the aggregate credits used by the Company pursuant to said clause (a) and clause (d) in all applications for the release of property theretofore released from the Lien hereof on the basis of purchase money obligations theretofore delivered to and then held by the Trustee or the trustee or other holder of a Qualified Lien or lien prior hereto shall, immediately after the release then being applied for, exceed fifteen per centum (15%) of the aggregate principal amount of bonds at such time Outstanding under this Indenture;
	 	 	 
	(4)    Opinion of Counsel on Property Additions	 	(4)  in the case where the release is on the basis of Property Additions, an Opinion of Counsel as required by Section 5.06(7) hereof;
	 	 	 
	(5)    Opinion
of Counsel on purchase money mortgage, etc.	 	(5)  in case any obligations secured by purchase money mortgage upon the property to be released are included in the consideration for such release and are delivered to the Trustee or to the trustee or other holder of a Qualified Lien or a lien prior hereto in connection with any release of such property, an Opinion of Counsel stating that, in his or her or their opinion, such obligations are valid obligations enforceable in accordance with their terms, except as limited by bankruptcy, insolvency, reorganization, moratorium or other laws affecting the enforcement of mortgagees’ and other creditors’ rights and by general equitable principles (regardless of whether such enforceability is considered in a proceeding in equity or at law), and that the purchase money mortgage securing the same is sufficient

 

     

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	§13.03	 	 
	 	 	 
	to afford a valid purchase money lien upon the property to be released, subject to no lien prior thereto except Excepted Encumbrances and such liens, if any, as shall have existed thereon just prior to such release as Qualified Liens or liens prior to the Lien of this Indenture;	 	 
	 	 	 
	(6)  in case the Trustee is requested to release any franchise, an Opinion of Counsel stating that in his or her or their opinion such release will not impair to any material extent the right of the Company to operate any of its remaining properties; and	 	(6)    Opinion
    of

    Counsel if franchise to be released
	 	 	 
	(7)  an Opinion of Counsel complying with the requirements of Section 22.05 hereof.	 	(7)    Opinion of Counsel on conditions and covenants
	 	 	 
	All purchase money obligations and the mortgages securing the same delivered to the Trustee pursuant to this Section shall be duly assigned to the Trustee. The Company shall cause any such purchase money mortgage and the assignment thereof to be promptly recorded and filed in such place or places as shall be required by law in order fully to preserve and protect the security afforded thereby and shall furnish to the Trustee an Opinion of Counsel stating that in the opinion of such counsel such purchase money mortgage and the assignment thereof have been properly recorded and filed so as to make effective the lien intended to be created thereby. Should any re-recording or re-filing be necessary at any time or from time to time, the Company shall likewise cause the same to be duly effected and shall, in each case, furnish to the Trustee an Opinion of Counsel similar to the foregoing. The Trustee shall deliver to the Company any purchase money mortgage and/or assignment thereof whenever required for the purpose of recording or filing or re-recording or re-filing, as evidenced by an Opinion of Counsel, and the same shall be promptly returned to the Trustee when such purposes shall have been accomplished.	 	 
	 	 	 
	In case the release of property is, in whole or in part, based upon Property Additions (as permitted under the provisions of clause (b) of subdivision (3) of this Section), the Company shall, subject to the provisions of said clause (b), comply with all applicable provisions of this Indenture (including but not limited to the furnishing of the Engineer’s Certificate provided for in subdivision (3) of Section 5.06 hereof and, in case the provisions of subdivision (4) of Section 5.06 hereof are applicable, the Independent Engineer’s Certificate provided for in said subdivision (4) of Section 5.06 hereof) as if such Property Additions were made the	 	Conditions if release based on Property
    Additions; bonds retired hereunder, etc.

 

     

    	 	86	 

    

 

	 	 	§13.03  
	 	 	 
	 	 	basis of an application for the authentication and delivery of bonds thereon (equivalent in principal amount to seventy per centum (70%) of the fair value of that portion of the property to be released which is to be released on the basis of such Property Additions, as shown by the Engineer’s Certificate in subdivision (2) of this Section provided for), and in case the release of property is in whole or in part based upon the right to the authentication and delivery of bonds (as permitted under the provisions of clause (c) of subdivision (3) of this Section) the Company shall comply with all applicable provisions of Section 5.04 or Section 6.01 hereof, as the case may be, relating to such authentication and delivery, except that in no such case shall the Company be required to comply with any earnings requirement or to deliver to the Trustee any Resolution, Officers’ Certificate, Net Earning Certificate or Opinion of Counsel provided for in subdivisions (1), (2), (6) and (8) of Section 5.06 hereof; provided, however, that the Cost of any Property Additions received or to be received by the Company in whole or in part as consideration in exchange for the property to be released shall for all purposes of this Indenture be deemed to be the amount stated in the Engineer’s Certificate provided for in subdivision (2) of this Section to be the fair value of the property to be released (a) plus the amount of any cash and the fair value of any other consideration, further to be stated in such Engineer’s Certificate, paid and/or delivered or to be paid and/or delivered by, and the amount of any obligations assumed or to be assumed by, the Company in connection with such exchange as additional consideration for such Property Additions or (b) less the amount of any cash and the fair value to the Company of any other consideration, which shall also be stated in such Engineer’s Certificate, received or to be received by the Company in connection with such exchange in addition to such Property Additions.
	 	 	 
	Valuation of property subject to Qualified
    Lien or prior lien	 	For all purposes of this Article XIII, the fair value of property subject to a Qualified Lien shall be determined as if such property were free of such Qualified Lien and the fair value of property subject to a lien prior to the Lien hereof, which has not theretofore or is not then to become a Qualified Lien shall be the fair value thereof less the principal amount of any obligations secured by such lien thereon if it will thereafter cease to be a lien on any property subject to the Lien hereof.

 

	Property Additions made basis of release of unfunded property do
not become Funded Property	 	Notwithstanding any of the other provisions of this Indenture, (A)  to the extent that any property to be released is not Funded Property and the Property Additions made the basis of such release

 

     

    	 	87	 

    

 

	§13.03	 	 
	 	 	 
	shall (as evidenced by a statement to such effect in an Engineer’s Certificate) never previously have been used as the basis of the release of property under the provisions of clause (b) of subdivision (3) of this Section or as the basis of the withdrawal of cash under subdivision (1) of Section 13.06 or under a Qualified Lien, said Property Additions shall not have the status of Funded Property except to the extent of any amount which shall, at the time such Property Additions were made the basis of such release, have been deducted from the Cost or fair value of such Property Additions pursuant to the provisions of clause (A) of Section 1.04 hereof less any amount which shall then have been added thereto pursuant to the provisions of clause (B) of said Section 1.04, and except to the extent of any amount which shall then have been deducted in respect of Qualified Liens on such Property Additions pursuant to the provisions of Section 5.04 hereof, and	 	 
	 	 	 
	(B)  to the extent that any property released shall not have been Funded Property just prior to its release,	 	Provisions re release of certain property
    which is not Funded Property
	 	 	 
	(i)  any Property Additions made the basis of such release of property shall not be deemed to be Funded Property except to the extent of any amount which shall, at the time such Property Additions were made the basis of such release, have been deducted from the Cost or fair value of such Property Additions pursuant to the provisions of clause (A) of Section 1.04 hereof less any amount which shall then have been added thereto pursuant to the provisions of clause (B) of said Section 1.04, and except to the extent of any amount which shall then have been deducted in respect of Qualified Liens on such Property Additions pursuant to the provisions of Section 5.04 hereof, and	 	 
	 	 	 
	(ii)  any waiver of the right to the authentication and delivery of bonds made the basis of such release of property shall be revoked and cease to be effective and shall no longer be deemed to have been made, if the Company shall within two years after the release of such property file with the Trustee such Officers’ Certificates, Engineer’s Certificates, Independent Engineer’s Certificates, Opinions of Counsel and other papers (other than any Resolution, Net Earning Certificate or Opinion of Counsel such as is described in subdivisions (1), (6) and (8) of Section 5.06 hereof) as under the provisions of Article V hereof	 	 

 

     

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	 	 	§§13.03,
    13.04
	 	 	 
	 	 	would entitle the Company, on the basis of Property Additions acquired, made or constructed subsequent to the application for the release of such property, to the authentication and delivery of bonds (equal in principal amount to seventy per centum (70%) of the fair value of such property so released), and the inclusion of such subsequently acquired Property Additions in any such Officers’ Certificate, Engineer’s Certificate, Independent Engineer’s Certificate, Opinion of Counsel or other papers shall not make such subsequently acquired Property Additions Funded Property.
	 	 	 
	 	 	Any bonds Outstanding under this Indenture deposited with the Trustee pursuant to the provisions of subdivision (3)(e) of this Section shall forthwith be cancelled by the Trustee, and any Qualified Lien Bonds deposited with the Trustee pursuant to the provisions of this Section shall be held by the Trustee subject to the provisions of Article X hereof and any moneys and/or obligations secured by purchase money mortgage and/or other property and/or the proceeds of any thereof and/or substitutes therefor received by the Trustee under this Section shall be held as part of the Mortgaged and Pledged Property and such moneys and/or obligations secured by purchase money mortgage shall be paid over, withdrawn, used or applied, in the manner, to the extent, and for the purposes and subject to the conditions provided in Section 13.06 hereof.
	 	 	 
	Substituted property to become subject to
    Lien hereof	 	Any property acquired by the Company by exchange or purchase to take the place of any property released under any provisions of this Article shall forthwith and without further conveyance become subject to the Lien of and be covered by this Indenture as a part of the Mortgaged and Pledged Property, subject to no lien except Class “A” Mortgages, Qualified Liens and Excepted Encumbrances and any liens existing thereon just prior to the acquisition thereof.
	 	 	 
	Release of property which is not Funded
    Property	 	Section
    13.04      Unless the Company is in default in the payment of the interest on any bonds then Outstanding hereunder or one or more
    Defaults shall have occurred and be continuing, the Company may obtain the release of any of the Mortgaged and Pledged
    Property which is not Funded Property, except cash then held by the Trustee (provided, however, that Qualified Lien Bonds
    deposited with the Trustee shall not be released except as provided in Article X hereof and Class “A”
    Bonds deposited with the Trustee shall not be released except as provided in

 

     

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	§13.04	 	 
	 	 	 
	Article XIV hereof and obligations secured by purchase money mortgage deposited with Trustee shall not be released except as provided in Section 13.06 hereof), and the Trustee shall release all its right, title and interest in and to the same from the Lien hereof upon application of the Company and receipt by the Trustee of the following (in lieu of complying with the requirements of Section 13.03 hereof):	 	Requirements:
	 	 	 
	(1)  An Officers’ Certificate stating that the Company has sold, leased, granted an interest in, exchanged, dedicated or disposed of, or intends to sell, lease, grant an interest in, exchange, dedicate, or dispose of, or that governmental body or agency has lawfully ordered the Company to divest itself of, certain property (which property shall be described in such certificate in reasonable detail) that is not Funded Property and stating the consideration, if any, received or to be received therefor, and requesting the release thereof from the Lien of this Indenture; and stating that such property has not theretofore been funded; that such release is in the opinion of the signers desirable in the conduct of the business of the Company; and that the Company is not, to the knowledge of the signers, in default in the performance of any of the terms or covenants of this Indenture; and that in the opinion of the signers all conditions precedent provided for in this Indenture relating to the release of the property in question have been complied with;	 	(1) Officers’ Certificate
	 	 	 
	(2)  (a)  An Engineer’s Certificate, made and dated not more than ninety (90) days prior to the date of such application, (x) stating, in the opinion of the signers, the then fair value of the property to be released (which property shall be described in such certificate in reasonable detail) without deduction for any liens on such property; and (y) stating that, in the opinion of the signers, such release will not impair the security under this Indenture in contravention of the provisions of this Indenture;	 	(2) Engineer’s Certificate
	 	 	 
	(b)  In the case the fair value of such property to be released and of all other property released from the Lien of this Indenture since the commencement of the then current calendar year, as shown by certificates filed pursuant to Article XIII hereof, is ten per centum (10%) or more of the aggregate principal amount of bonds Outstanding at the time of the application then being made, an Independent Engineer’s Certificate stating in substance, the then fair value, in the opinion of the signers, of the property to be released, without deduction for any lien on such property; and that such release, in the	 	 

 

     

    	 	90	 

    

 

	 	 	§§13.04, 13.05
	 	 	 
	 	 	opinion of the signers, will not impair the security under this Indenture in contravention of the terms of this Indenture; provided, however, that no Independent Engineer’s Certificate need be delivered to the Trustee in the case of any release of property if the fair value thereof, as shown by the certificate filed pursuant to paragraph (a) of this subdivision (2), is less than Twenty-five Thousand Dollars ($25,000) or less than one per centum (1%) of the aggregate principal amount of bonds at the time Outstanding;
	 	 	 
	(3) Further Engineer’s Certificate	 	(3)  A further Engineer’s Certificate, made and dated not more than ninety (90) days prior to the date of such application, stating, in the opinion of the signers, that the aggregate principal amount of bonds to be Outstanding under this Indenture immediately after such release shall not exceed seventy per centum (70%) of the aggregate fair value of the then Funded Property of the Company; and
	 	 	 
	(4) Opinion of Counsel	 	(4)  An Opinion of Counsel to the effect that all conditions precedent provided for in this Indenture relating to the release of the property in question have been complied with and, in case the Trustee is requested to release any franchise, that such release will not impair to any material extent the right of the Company to operate any of its remaining properties.
	 	 	 
	Release of certain unimproved real estate upon request of Company

                                                       

                                                       

                                                       

                                                       

                                                       

                                                       

                                                       

                                                       

                                                       

                                                       

                                                      Requirements:

 

(1) Engineer’s
Certificate
	 	Section  13.05 Unless the Company is in default in the payment of the interest on any bonds then Outstanding hereunder or one or more Defaults shall have occurred and be continuing, the Trustee shall whenever from time to time requested by the Company (such request to be evidenced by an Officers’ Certificate) and without requiring compliance with any of the provisions of Section 13.03 hereof, release from the Lien hereof all the right, title and interest of the Trustee in and to any real estate unimproved for use in the conduct of the business of the Company, provided the Company has sold, exchanged, dedicated or disposed of such real estate, or has agreed to sell, exchange, dedicate or dispose of such real estate, or, as evidenced by such Officers’ Certificate, has authorized its officers to endeavor to sell such real estate, and provided the aggregate fair value of the interest of the Company in such real estate so released without such compliance in any calendar year shall not exceed the greater of Five Million Dollars ($5,000,000) or three per centum (3%) of the bonds Outstanding hereunder on the date of such release. Prior to the granting of any such release, there shall be delivered to the Trustee an Engineer’s

 

     

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	§§13.05, 13.06	 	 
	 	 	 
	Certificate stating the fair value of the property to be released and that in the opinion of the signers the release thereof will not impair the security under this Indenture in contravention of the provisions hereof and setting forth any other facts required to be known by the Trustee as a condition precedent to any act by the Trustee under this Section. The Company covenants that on or before March 1st of each year it will deposit with the Trustee, to be dealt with in the manner provided in Section 13.06 hereof, the net consideration, if any, received by it upon the sale or other disposition of all such real estate so released during the previous calendar year (to the extent that the same shall not have been paid or delivered to the trustee or other holder of a Class “A” Mortgage or a Qualified Lien or another lien prior to the Lien of this Indenture in accordance with the provisions thereof and an Officers’ Certificate to that effect shall have been furnished to the Trustee), or if no consideration be received therefor or results therefrom the Company will so deposit the fair value thereof. Any cash paid over to the Trustee hereunder may thereafter be withdrawn, used or applied in the manner, to the extent and for the purposes and subject to the conditions provided in Section 13.06 hereof. For the purposes hereof the term “unimproved for use in the conduct of the business of the Company” shall include not only vacant lands but parcels of real estate (and all buildings, fixtures and other improvements thereon) that are not used or usable in the Company’s operations or are surplus to its needs.	 	(2)
                                         Deposit of consideration

                                                       

                                                       

                                                       

                                                       

                                                       

                                                       

                                                       

                                                       

                                                       

                                                       

                                                       

                                                       

                                                       

                                                       

                                                       

                                                       

                                                      “unimproved
                                         for use in the conduct of the business of the Company”

	 	 	 
	Section 13.06 Unless the Company is in default in the payment of the interest on any bonds then Outstanding hereunder or one or more Defaults shall have occurred and be continuing, any Funded Cash received by the Trustee shall be held by the Trustee and such cash and any cash which may be applied as in this Section provided,	 	Withdrawal, use or application of money
    received by Trustee for releases
	 	 	 
	(1)  may be withdrawn from time to time by the Company to the extent of the Cost or the fair value to the Company (whichever is less) of Property Additions not then Funded Property (after making any deductions and additions pursuant to the provisions of Section 1.04 hereof); provided, however, that no such withdrawal of cash representing the proceeds of insurance on or the release of property or securities or payment of or on account of obligations secured by purchase money mortgages may be based in whole or in part upon Property Additions acquired, made or constructed more than five years prior to the last day of the calendar month immediately	 	(1) Withdrawal on basis of Property Additions

 

     

    	 	92	 

    

  

	 	 	§13.06
	 	 	 
	 	 	preceding the receipt by the Trustee of such cash, and provided further, that Property Additions acquired, made or constructed within ninety (90) days prior to the date of the receipt by the Trustee of such cash representing the proceeds of insurance on or the release of property (including securities and other personal property, if any), or payment of or on account of obligations secured by purchase money mortgages, or subsequent to such receipt of cash, may, at the option of the Company, not have deducted therefrom the deductions nor added thereto the additions pursuant to Section 1.04 hereof;
	 	 	 
	(2)    Withdrawal on basis of right to issue
    bonds	 	(2)  may be withdrawn from time to time by the Company in an amount equal to the principal amount of each bond or fraction of a bond to the authentication and delivery of which the Company shall be entitled under the provisions of Section 5.04 or Section 6.01 hereof, by virtue of compliance with all applicable provisions of said Section 5.04 or Section 6.01, as the case may be (except as hereinafter in this Section otherwise provided); provided, however, that (except as hereinafter in this Section otherwise provided) the application for such withdrawal of cash shall operate as a waiver by the Company of such right to the authentication and delivery of each such bond or fraction thereof, on the basis of which right such cash is withdrawn, and any bonds or Qualified Lien Bonds which have been made the basis of any such right to the authentication and delivery of bond(s) or fraction of a bond so waived shall be deemed to have been made the basis of the withdrawal of such cash;
	 	 	 
	(3)    Applied to purchase bonds	 	(3)  may, upon the request of the Company, be used by the Trustee for the purchase of bonds issued hereunder in accordance with the provisions of Section 12.05; or
	 	 	 
	(4)    Applied to retire or redeem bonds	 	(4)  may, upon the request of the Company, be applied by the Trustee to the payment at maturity of any bonds issued hereunder or to the redemption of any bonds issued hereunder which are, by their terms, redeemable, of such series as may be designated by the Company, such redemption to be in the manner and as provided in Article XII hereof.
	 	 	 
	Conditions upon which moneys will be paid
    out	 	Such moneys shall, from time to time, be paid out or used or applied by the Trustee, as aforesaid, upon the request of the Company evidenced by a Resolution, and upon receipt by the Trustee of an Officers’ Certificate stating that the Company is not in default in the payment of the interest on any bonds then Outstanding hereunder and that no Default has

 

     

    	 	93	 

    

 

	§13.06	 	 
	 	 	 
	occurred and is continuing. In case the withdrawal of cash is, in whole or in part, based upon Property Additions (as permitted under the provisions of clause (1) of this Section), the Company shall, subject to the provisions of said clause (1), comply with all applicable provisions of this Indenture (including but not limited to the furnishing of the Engineer’s Certificate provided for in subdivision (3) of Section 5.06 hereof and, in case the provisions of subdivision (4) of Section 5.06 hereof are applicable, the Independent Engineer’s Certificate provided for in said subdivision (4) of Section 5.06 hereof) as if such Property Additions were made the basis of an application for the authentication and delivery of bonds thereon equivalent in principal amount to seventy per centum (70%) of the cash to be withdrawn on such basis; or in case the withdrawal of cash is, in whole or in part, based upon the right to the authentication and delivery of bonds (as permitted under the provisions of clause (2) of this Section) the Company shall comply with all applicable provisions of Section 5.04 or 6.01 hereof, as the case may be, relating to such authentication and delivery; except that in no such case shall the Company be required to comply with any earnings requirement or to deliver to the Trustee any Resolution, Officers’ Certificate, Net Earning Certificate or Opinion of Counsel such as is described in subdivisions (1), (2), (6) and (8) of Section 5.06 hereof.	 	 
	 	 	 
	Notwithstanding any of the other provisions of this Indenture,	 	When Property
	 	 	Additions made basis
	(a) 
    to the extent that any cash to be withdrawn under the provisions of this Section or of a Qualified Lien represents the
    proceeds of property that was not Funded Property released, taken by eminent domain or damaged or destroyed by fire or
    represents payment on account of principal of, or consideration for the release of, obligations secured by purchase money
    mortgage which shall have been deposited with the Trustee or with the trustee or other holder of a Qualified Lien as the
    basis of the release of property that was not Funded Property, and the application for the withdrawal of such cash is based
    upon Property Additions (which shall never previously have been used as the basis of the withdrawal of cash under subdivision
    (1) of this Section or under a Qualified Lien or as the basis of the release of property under the provisions
    of clause (b) of subdivision (3) of Section 13.03 hereof, as evidenced by a statement to such effect
    in an Engineer’s Certificate), then such Property Additions shall not have the status of Funded
    Property,	 	of withdrawal do not become Funded Property

 

     

    	 	94	 

    

 

	 	 	§13.06
	 	 	 
	 	 	except to the extent of any amount which shall, at the time such Property Additions were made the basis of such withdrawal of cash, have been deducted from the Cost or fair value of such Property Additions pursuant to the provisions of clause (A) of Section 1.04 hereof less any amount which shall then have been added thereto pursuant to the provisions of clause (B) of said Section 1.04, and except to the extent of any amount which shall then have been deducted in respect of Qualified Liens on such Property Additions pursuant to Section 5.04 hereof, and
	 	 	 
	When cash withdrawn does not represent Funded
    Property	 	(b)  to the extent that any cash withdrawn, used or applied under the provisions of this Section or of a Qualified Lien shall have represented the proceeds of property that was not Funded Property released, taken by eminent domain or damaged or destroyed by fire or shall have represented payment on account of principal of, or consideration for the release of, obligations secured by purchase money mortgage which shall have been deposited with the Trustee or the trustee or other holder of a Qualified Lien as the basis of the release of property that was not Funded Property,
	 	 	 
	 	 	(i)  such cash shall no longer be deemed to be, or to have been at the time of such withdrawal, use or application, Funded Cash;
	 	 	 
	 	 	(ii)  any Property Additions made the basis of such withdrawal of cash shall not be deemed to be Funded Property except to the extent of any amount which shall, at the time such Property Additions were made the basis of such withdrawal of cash, have been deducted from the Cost or fair value of such Property Additions pursuant to the provisions of clause (A) of Section 1.04 hereof less any amount which shall then have been added thereto pursuant to the provisions of clause (B) of said Section 1.04, except to the extent of any amount which shall then have been deducted in respect of Qualified Liens on such Property Additions pursuant to Section 5.04 hereof; and
	 	 	 
	 	 	(iii)  any waiver of the right to the authentication and delivery of bonds, made the basis of such withdrawal of cash, shall be revoked and cease to be effective and shall no longer be deemed to have been made, if the Company shall, within two years after the withdrawal, use or application of such cash, file with the Trustee such Officers’ Certificates, Engineer’s Certificates, Independent Engineer’s Certificates, Opinions of Counsel and other papers (other than any

 

     

    	 	95	 

    

 

	§13.06	 	 
	 	 	 
	Resolution, Net Earning Certificate or Opinion of Counsel such as is described in subdivisions (1), (6) and (8) of Section 5.06 hereof) as, under the provisions of Article V hereof, would entitle the Company, on the basis of Property Additions acquired, made or constructed subsequent to the receipt by the Trustee or the trustee or other holder of a Qualified Lien of such cash, to the authentication and delivery of bonds equal in principal amount to seventy per centum (70%) of such cash so withdrawn, used or applied, and the inclusion of such subsequently acquired Property Additions in any such Officers’ Certificate, Engineer’s Certificate, Independent Engineer’s Certificate, Opinion of Counsel or other papers shall not make such subsequently acquired Property Additions Funded Property.	 	 
	 	 	 
	Any obligation secured by purchase money mortgage received or to be received by the Trustee under any of the provisions of this Indenture in consideration of the release of any property may be released at any time upon payment by the Company to the Trustee of all or the unpaid portion of the principal of such obligation; provided, however, at any time after the Trustee shall have received on account of the principal of any obligations secured by purchase money mortgage on a specified property (from the Company, the obligor or otherwise), an amount in cash equal to the aggregate principal amount of such obligations to the extent made the basis of a credit in the application for the release from the Lien hereof of such property, the Trustee shall deliver to the Company on the written request of an Authorized Executive Officer of the Company, and the Secretary or an Assistant Secretary or an Authorized Financial Officer of the Company, the purchase money mortgage on such property and all obligations secured thereby then held by the Trustee including, but not limited to, any such obligations delivered to the Trustee as required by subdivision (3) of Section 13.03 hereof but not used as a credit thereunder.	 	Release of purchase money mortgage obligations
	 	 	 
	The principal of and interest on any such obligations secured by purchase money mortgage held by the Trustee shall be collected by the Trustee as and when the same become payable. Unless the Company is in default in the payment of the interest on any of the bonds then Outstanding hereunder or one or more Defaults shall have occurred and be continuing, the interest received by the Trustee on any such obligations shall be paid over to the Company, and any payments received by the Trustee on account of the principal of any such obligations in excess of the amount of credit used by the Company in respect of such	 	Trustee
    shall collect purchase money mortgage obligations

 

     

    	 	96	 

    

 

	 	 	§§13.06, 13.07
	 	 	 
	 	 	obligations upon the release of any property from the Lien hereof shall also be paid over to the Company.
	 	 	 
	 	 	The Trustee shall have and may exercise all the rights and powers of an owner of such obligations and of all substitutions therefor and, without limiting the generality of the foregoing, may collect and receive all insurance moneys payable to it under any of the provisions thereof and apply the same in accordance with the provisions thereof, may consent to extensions thereof at a higher or lower rate of interest, may join in any plan or plans of voluntary or involuntary reorganization or readjustment or rearrangement and may accept and hold hereunder new obligations, stocks or other securities issued in exchange therefor under any such plan. Any discretionary action which the Trustee may be entitled to take in connection with any such obligations or substitutions therefor shall be taken, so long as no Default shall exist, in accordance with the request of the Company, evidenced by a Resolution, and during the existence of a Default in its own discretion.
	 	 	 
	Cancellation or retention by Trustee of
    certain bonds	 	Any bonds issued under this Indenture received by the Trustee pursuant to the provisions of this Section shall forthwith be cancelled by the Trustee and any Qualified Lien Bonds deposited with the Trustee, pursuant to the provisions of this Section shall be held by the Trustee subject to the provisions of Article X hereof.
	 	 	 
	Release
                                         of property taken y eminent domain or purchased by governmental body

 

 

 

 

Opinion of Counsel

 

 

Officer’s
Certificate

 

 

 

 

 

Application of proceeds

	 	Section 13.07     Should any of the
    Mortgaged and Pledged Property (or any interest therein) be taken by exercise of the power of eminent domain or be sold to an
    entity possessing the power of eminent domain under a threat to exercise the same, and should the Company not elect to obtain
    the release of such property or interest pursuant to other provisions of this Article XIII, the Trustee shall, upon
    request of the Company evidenced by an Officers’ Certificate, release from the Lien hereof all its right, title and
    interest in and to the property so taken or sold, or subordinate the Lien hereof to the interest so taken or sold, upon being
    furnished with an Opinion of Counsel to the effect that such property or interest has been taken by exercise of the power of
    eminent domain or has been sold under threat of an exercise of such power. Such Opinion of Counsel shall be accompanied by an
    Officers’ Certificate stating the amount of net proceeds received or to be received for such property or interest so
    taken or sold and the amount so stated shall be deemed to be the fair value of such property or interest for the purpose of
    subdivision (b) of Section 19.13 hereof. On or before March 1st of each

 

     

    	 	97	 

    

 

	§§13.07,
    13.08	 	 
	 	 	 
	year, an amount equal to the net proceeds of all property so taken or sold during the previous calendar year (which proceeds shall, in either event, be required to be entirely in the form of cash) shall be paid over to the Trustee (unless the same shall have been paid or delivered to the trustee or other holder of a Class “A” Mortgage or a Qualified Lien or lien prior hereto, in accordance with the provisions thereof and a certificate of such trustee or other holder to that effect shall have been furnished to the Trustee), and (if paid over to the Trustee hereunder) may thereafter be withdrawn, used or applied in the manner, to the extent and for the purposes and subject to the conditions provided in Section 13.06 hereof.	 	 
	 	 	 
	Section
    13.08     In case the Mortgaged and Pledged Property shall be in the possession of a receiver or trustee, lawfully appointed, the
    powers hereinbefore conferred upon the Company with respect to the sale or other disposition of the Mortgaged and Pledged
    Property or the withdrawal of cash may be exercised, with the approval of the Trustee, by such receiver or trustee,
    notwithstanding the Company may be in default and any request, certificate, appointment or approval made or signed by such
    receiver or trustee for such purposes shall be as effective as if made by the Company or its Board of Directors or any of its
    officers or appointees in the manner herein provided; and if the Trustee shall be in possession of the Mortgaged and Pledged
    Property under any provision of this Indenture, then such powers may be exercised by the Trustee in its discretion
    notwithstanding that the Company may be in default.	 	If property is hands of receiver
    or trustee
	 	 	 
	Notwithstanding the existence of a default in the payment of interest on any bonds Outstanding hereunder or the existence of a Default, the Trustee, in its discretion, may release from the Lien hereof any part of the Mortgaged and Pledged Property or permit the withdrawal of cash, upon compliance with the other conditions specified in this Article in respect thereof.	 	Release of property or withdrawal
    of cash in the discretion of Trustee
	 	 	 
	No purchaser in good faith of property purporting to have been released hereunder shall be bound to ascertain the authority of the Trustee to execute the release, or to inquire as to any facts required by the provisions hereof for the exercise of this authority; nor shall any purchaser or grantee of any property or rights permitted by this Article to be sold, granted, exchanged, dedicated or otherwise disposed of, be under obligation to ascertain or inquire into the authority of the Company to make any such sale, grant, exchange, dedication or other disposition.	 	Purchaser in good faith
    not put on inquiry

 

 

     

    	 	98	 

    

 

	 	 	§§13.09, 13.10
	 	 	 
	Release based on release from
    Class “A” Mortgage	 	Section 13.09     In lieu of the other provisions for the release of Mortgaged and Pledged Property provided in this Indenture, unless the Company is in default in the payment of the interest on any bonds then Outstanding hereunder or one or more Defaults shall have occurred and be continuing, the Company may in the alternative obtain the release of any of the Mortgaged and Pledged Property which is subject to the lien of a Class “A” Mortgage (except cash, Qualified Lien Bonds, Class “A” Bonds or obligations secured by purchase money mortgage) by delivery to the Trustee of the Officers’ Certificate provided for in subdivision (1) of Section 13.03 hereof, the Engineer’s Certificate provided for in subparagraphs (a), (b), (d) and (f) of subdivision (2) of Section 13.03 hereof, the Opinion of Counsel provided for in subdivision (7) of Section 13.03 hereof and a copy of a release of such Mortgaged and Pledged Property from the lien of a Class “A” Mortgage executed by the trustee of such Class “A” Mortgage.
	 	 	 
	Quitclaim of property not subject to Lien	 	Section 13.10     In case the Company has sold, exchanged, dedicated or disposed of, or intends or has agreed to sell, exchange, dedicate or dispose of, or a governmental body or agency has lawfully ordered the Company to divest itself of, any property of a character excepted from the Lien hereof, or the Company desires to disclaim or quitclaim title to property to which the Company does not purport to have title, the Trustee shall, from time to time, execute such instruments of disclaimer or quitclaim as may be appropriate upon receipt by the Trustee of the following:
	 	 	 
	 	 	(1)  an Officers’ Certificate complying with the requirements of Section 22.05 hereof and describing in reasonable detail the property to be disclaimed or quitclaimed; and
	 	 	 
	 	 	(2)  an Opinion of Counsel complying with the requirements of Section 22.05 hereof and stating the signer’s opinion that such property is not subject to the Lien hereof or required to be subject thereto by any of the provisions hereof; and stating that the execution of such disclaimer or quitclaim is appropriate.

 

     

    	 	99	 

    

  

	Art. XIV, §14.01;
    Art. XV, §15.01	 	 
	 	 	 
	Article XIV

                                                                                discharge
                                         of Class
                                         “A” Mortgage

	 	 
	 	 	 
	Section 14.01     At the option of the Company as evidenced by a written request signed by an Authorized Executive Officer of the Company, and by the Secretary or an Assistant Secretary or an Authorized Financial Officer of the Company, and accompanied (a) by an Opinion of Counsel to the effect that upon satisfaction of the Class “A” Mortgage the Lien of this Indenture will constitute a lien on substantially all of the property formerly subject to the lien of such Class “A” Mortgage (except such property as is excepted from the Lien hereof) subject to no lien prior or equal to the Lien of this Indenture except Qualified Liens and Excepted Encumbrances and (b) by an Officers’ Certificate to the effect that no Class “A” Bonds are Outstanding under such Class “A” Mortgage other than the Class “A” Bonds held hereunder and that promptly upon such surrender the Class “A” Mortgage will be satisfied pursuant to the terms thereof, the Trustee shall surrender for cancellation to the trustee under such Class “A” Mortgage all Class “A” Bonds issued under said Class “A” Mortgage then held by the Trustee.	 	Discharge of Class “A”
    Mortgage
	 	 	 
	Article XV

    Remedies of Trustee
    and Bondholders Upon Default	 	 
	 	 	 
	Section 15.01     The following events are hereby defined for all purposes of this Indenture (except where the term is otherwise defined for specific purposes) as “Defaults”:	 	“Defaults”
	 	 	 
	(a)  Failure to pay the principal of any bond hereby secured when the same shall become due and payable, whether at maturity, as therein expressed, or by declaration or otherwise;	 	 
	 	 	 
	(b)  Failure to pay interest upon any bond hereby secured for a period of sixty (60) days after such interest shall have become due and payable;	 	 
	 	 	 
	(c)  Failure to pay interest upon or principal (whether at maturity, as therein expressed, or by declaration, or otherwise) of any Outstanding Qualified Lien Bonds continued beyond the period of grace, if any, specified in the Qualified Lien securing the same;	 	 
	 	 	 
	(d)  Failure to pay any installment of any fund required to be applied to the purchase or redemption of any of the bonds hereby	 	 

 

     

    	 	100	 

    

 

	 	 	§15.01
	 	 	 
	 	 	secured for a period of sixty (60) days after the same shall have become overdue and payable;
	 	 	 
	 	 	(e)  The expiration of a period of ninety (90) days following the entry of a decree or order by a court having jurisdiction in the premises for relief in respect of the Company under the Federal Bankruptcy Act or any other applicable Federal or State law of a similar nature, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of or for the Company or for all or substantially all of its property, or ordering the winding up or liquidation of its affairs unless during such period such decree, order or appointment of a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official shall be vacated or shall be stayed on appeal or otherwise or shall have otherwise ceased to continue in effect;
	 	 	 
	 	 	(f)  The commencement by the Company of a voluntary case, or the institution by it of proceedings to be adjudicated bankrupt or insolvent, or the consent by it to the institution of bankruptcy or insolvency proceedings against it, or the filing by it of a petition or answer or consent seeking reorganization, arrangement or relief under the Federal Bankruptcy Act or any other applicable Federal or State law of a similar nature, or the consent or acquiescence by it to the filing of any such petition or to the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the Company or for all or substantially all of its property, or the making by it of an assignment for the benefit of creditors, or the admission by it in writing of its inability to pay its debts generally as they become due, or the taking of corporate action by the Company in furtherance of any such action;
	 	 	 
	 	 	(g)  The expiration of a period of ninety (90) days after the receipt by the Company of a written demand (citing this provision) from the Trustee or (with copy to the Trustee) from the holders of fifteen per centum (15%) in principal amount of the bonds at the time Outstanding hereunder (determined as provided in Section 15.07 hereof) that the Company perform a specified covenant or agreement contained herein or in any indenture supplemental hereto or in any bond secured hereby, which specified covenant or agreement the Company shall have failed to perform prior to the mailing of such notice, unless

 

     

    	 	101	 

    

 

	§§15.01, 15.02	 	 
	 	 	 
	the Company during such period shall have performed such specified covenant or agreement or, if such covenant or agreement cannot reasonably have been performed during such period, then the Company shall have commenced and be diligently pursuing such performance. The Trustee may, and, if requested in writing so to do by the holders of a majority in principal amount of the bonds then Outstanding, shall, make such demand;	 	
	 	 	 
	(h)  The existence of any “Default”, as defined under the Pacific Mortgage, or the existence of any “Default”, as defined under the Utah Mortgage, or the existence of any default under another Class “A” Mortgage, which then permits the declaration of the principal of all of the bonds secured by such Class “A” Mortgage and the interest accrued thereupon due and payable;	 	 
	 	 	 
	provided that with respect to subdivisions (c) and (h) of this Section 15.01, if such default or Default, as the case may be, under such Qualified Lien or Class “A” Mortgage shall be remedied or cured by the Company or waived by the holders of such indebtedness, then the Default hereunder by reason thereof shall be deemed likewise to have been thereupon remedied, cured or waived without further action upon the part of either the Trustee or any of the holders; and provided, further, that, subject to the provisions of Sections 19.01 and 19.02 hereof, the Trustee shall not be charged with knowledge of any such default or Default, as the case may be, unless written notice thereof shall have been given to the Trustee by the Company, by a holder or an agent of the holder of any such indebtedness, by a trustee then acting under any Qualified Lien or Class “A” Mortgage under which such default or Default, as the case may be, shall have occurred, or by the holders of not less than twenty-five per centum (25%) in aggregate principal amount of all the bonds then outstanding.	 	 
	 	 	 
	Section 15.02     The Trustee shall, within ninety (90) days after the occurrence thereof, give to the bondholders and any trustee under a Class “A” Mortgage, in the manner and to the extent provided in subdivision (c) of Section 19.13 hereof, notice of all defaults known to the Trustee, unless such defaults shall have been cured before the giving of such notice (the term “defaults” for the purposes of this Section being hereby defined to be the events specified in subdivisions (a), (b), (c), (d), (e), (f), (g) and (h) of Section 15.01 hereof not including any periods of grace provided for in said subdivisions) but in the case of any default as specified	 	Notice to defaults

 

     

    	 	102	 

    

 

 

	 	 	§§15.02, 15.03
	 	 	 
	 	 	in subdivision (g) of Section 15.01 hereof, no such notice shall be given until at least sixty (60) days after the occurrence thereof; provided that, except in the case of default in the payment of the principal of or interest on any of the bonds hereby secured, or in the payment of any installment of any fund required to be applied to the purchase or redemption of any of the bonds hereby secured, the Trustee shall be protected in withholding such notice if and so long as the board of directors, executive committee, or a trust committee of directors and/or Responsible Officers, of the Trustee in good faith determine that the withholding of such notice is not detrimental to the interests of the bondholders.
	 	 	 
	
        Declaration of principal and accrued interest due upon Default.

         

         

         

         

         

         

         

         

         

         

         

         

         

         

        Holders of majority of bonds may annul declaration
	 	Section 15.03     Upon
    the occurrence of a Default, the Trustee may, and upon the written request of the holders of a majority in principal amount
    of the bonds then Outstanding (determined as provided in Section 15.07 hereof) shall, and the holders of twenty-five
    per centum (25%) in principal amount of the bonds at the time Outstanding hereunder may, by notice in writing given to the
    Company (and to the Trustee if such notice be given by the bondholders), unless prior to such declaration all covenants with
    respect to which Default shall have occurred, shall have been fully performed or cured and all indebtedness secured hereby
    (other than expenses and charges of the Trustee), except the principal of any bonds not then due by their terms (other than
    by such declaration) and except interest accrued on such bonds since the last interest payment date, shall be paid, or the
    amount thereof shall be paid to the Trustee for the benefit of those entitled thereto, declare the principal of all of the
    bonds hereby secured and the interest accrued thereon immediately due and payable, and such principal and interest shall thereupon
    become and be immediately due and payable; subject, however, to the right of the holders of a majority in principal amount
    of all Outstanding bonds, by written notice to the Company and to the Trustee, thereafter to annul such declaration and destroy
    its effect at any time before any sale hereunder, if, before any such sale, all covenants with respect to which a Default
    shall have occurred shall be fully performed or cured, and all other indebtedness secured hereby except the principal of any
    bonds not then due by their terms (other than by such declaration) and except interest accrued on such bonds since the last
    interest payment date, shall be paid, or the amount thereof shall be paid to the Trustee for the benefit of those entitled
    thereto.

 

     

    	 	103	 

    

 

	§§15.04, 15.05	 	 
	 	 	 
	Section 15.04     Upon
    the occurrence of one or more Defaults, the Company upon demand of the Trustee, shall (if at the time such action shall be
    lawful) forthwith surrender to the Trustee the actual possession of, and (if at the time such action shall be lawful) the
    Trustee, by such officer or agent as it may appoint, may take possession of, all the Mortgaged and Pledged Property (with
    the books, papers and accounts of the Company) and hold, operate and manage the same, and from time to time make all needful
    repairs and such extensions, additions and improvements as to the Trustee shall seem wise; and receive the tolls, rents, revenues,
    issues, earnings, income, products and profits thereof, and out of the same pay all proper costs and expenses of so taking,
    holding, managing and operating the same, including reasonable compensation to and expenses of the Trustee, its agents and
    counsel, and any charges of the Trustee hereunder, and any taxes and assessments and other charges prior to the Lien of this
    Indenture which the Trustee may deem it wise to pay, and all expenses of such repairs, extensions, additions and improvements,
    and apply the remainder of the moneys so received by the Trustee, subject to the provisions of Section 15.12 hereof with
    respect to extended, transferred or pledged coupons or claims for interest, first to the payment of the installments of interest
    which are due and unpaid, in order of their maturity, and next, if the principal of any of said bonds is due, to the payment
    of the principal and accrued interest thereon pro rata without any preference or priority whatever, except as aforesaid. Whenever
    all that is due upon such bonds and installments of interest and under any of the terms of this Indenture shall have been
    paid and all Defaults cured, the Trustee shall surrender possession to the Company, its successors or assigns; the same right
    of entry, however, to exist upon any subsequent Default.	 	
        Trustee may take possession of and operate property.

         

         

         

         

         

        Application of income

         

         

         

         

         

         

         

         

         

        When Trustee shall surrender possession to Company

	 	 	 
	
        Section 15.05     Upon
        the occurrence of one or more Defaults, the Trustee, by such officer or agent as it may appoint, with or without entry,
        may, if at the time such action shall be lawful, sell all the Mortgaged and Pledged Property as an entirety, or in such
        parcels as the holders of a majority in principal amount of the bonds Outstanding hereunder (determined as provided
        in Section 15.07 hereof) shall in writing request, or in the absence of such request, as the Trustee may determine,
        at public auction, at some convenient place in the City of Portland, Oregon, or such other place or places as may be required
        by law, having first given notice of such sale by publication in at least one Daily Newspaper of general circulation
        in the City of Portland, Oregon (if there be such a Daily
	 	
        Power to sell all Mortgaged and Pledged Property

         

         

         

         

        Notice by publications

 

     

    	 	104	 

    

 

	 	 	§§15.05, 15.06, 15.07
	 	 	 
	 	 	Newspaper), once preceding such sale, to be made not less than twenty (20) days prior to the date of such sale, and by like publication in at least one Daily Newspaper of general circulation in the Borough of Manhattan, the City of New York, New York, and any other notice which may be required by law, and from time to time may (to the extent permitted by law) adjourn such sale in their discretion by announcement at the time and place fixed for such sale without further notice, and upon such sale may make and deliver to the purchaser or purchasers a good and sufficient instrument or instruments of conveyance, assignment or transfer for the same, which sale shall, to the extent then permitted by law, be a perpetual bar, both at law and in equity, against the Company and all persons, firms and corporations lawfully claiming or who may claim by, through or under it.
	 	 	 
	Judicial proceedings	 	Section 15.06     In
    case of the breach of any of the covenants or conditions of this Indenture, the Trustee shall have the right and power to
    take appropriate judicial proceedings for the enforcement of its rights and the rights of the bondholders hereunder. In case
    of a Default, the Trustee may either after entry, or without entry, proceed by suit or suits at law or in equity to enforce
    payment of the bonds then Outstanding hereunder and to foreclose this Indenture and to sell the Mortgaged and Pledged Property
    under the judgment or decree of a court or courts of competent jurisdiction.
	 	 	 
	Remedies cumulative	 	No remedy by the terms of this Indenture conferred upon or reserved to the Trustee (or to the bondholders), is intended to be exclusive of any other remedy, but each and every such remedy shall be cumulative and shall be in addition to any other remedy given hereunder or now or hereafter existing at law or in equity or by statute.
	 	 	 
	Delay, etc. no waiver of rights	 	No delay or omission to exercise any right or power accruing upon any Default shall impair any such right or power or shall be construed to be a waiver of any such Default or acquiescence therein; and every such right and power may be exercised from time to time and as often as may be deemed expedient.
	 	 	 
	Waiver of Default not to extend to subsequent Default.	 	No waiver of any Default, whether by the Trustee or by the bondholders, shall extend to or shall affect any subsequent Default or shall impair any rights or remedies consequent thereon.
	 	 	 
	Bondholders may direct proceedings 	 	Section 15.07     The
    holders of not less than a majority in principal amount of the bonds at the time Outstanding hereunder may direct the

 

     

    	 	105	 

    

 

	§§15.07, 15.08	 	 
	 	 	 
	time, method, and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, provided, however, that such direction shall not be otherwise than in accordance with the provisions of law and this Indenture and that, subject to the provisions of Section 19.01 and 19.02 hereof, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall by Responsible Officers determine that the action or proceeding so directed would involve the Trustee in personal liability or be unjustifiably prejudicial to nonassenting bondholders or that it will not be sufficiently indemnified for any expenditures in any action or proceeding so directed.	 	 
	 	 	 
	For the purposes of this Section and of Sections 9.06, 15.01, 15.03, 15.05, 19.02, 19.14, 19.15, 21.02, 21.06, 21.10 and 22.06 hereof, and for the purpose of waiving, in accordance with any of the provisions of Section 21.07 hereof, any past Default of the Company and the consequences thereof, in determining whether the holders of the required percentage of the principal amount of bonds have concurred or participated in any direction or consent, (a) bonds for the purchase of which money in the necessary amount shall have been deposited with or shall then be held by the Trustee with irrevocable direction to apply the same to the purchase thereof shall be deemed Outstanding and (b) bonds owned by the Company, or by any person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company (unless all bonds at the time Outstanding hereunder are then so owned), shall be disregarded, except that for the purpose of determining whether the Trustee shall be protected in relying on any such direction or consent, only bonds which the Trustee knows are so owned shall be so disregarded. Bonds so owned which have been pledged in good faith may be regarded as Outstanding for the purposes of this paragraph, if the pledgee shall establish to the satisfaction of the Trustee the pledgee’s right to vote such bonds and that the pledgee is not a person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company. In case of a dispute as to such right, any decision by the Trustee taken upon the advice of counsel shall be full protection to the Trustee.	 	Situations when bonds owned by Company and certain other bonds to be disregarded
	 	 	 
	Section 15.08     In
    case of a Default, and upon the filing of a bill in equity or other commencement of judicial proceedings to enforce the rights
    of the Trustee and of the bondholders under this Indenture, the Trustee shall be entitled, as a matter of right (to the extent
    that such	 	Appointment of receiver

 

     

    	 	106	 

    

 

	 	 	§§15.08, 15.09, 15.10, 15.11
	 	 	 
	 	 	right is enforceable under applicable law), to the appointment of a receiver or receivers of the Mortgaged and Pledged Property, and of the tolls, rents, revenues, issues, earnings, income, products and profits thereof, pending such proceedings, with such powers as the court making such appointment shall confer, whether or not the Mortgaged and Pledged Property shall be adequate to satisfy the bonds then outstanding.
	 	 	 
	All bonds to become due and payable upon sale of property	 	Section 15.09     Upon
    any sale being made either under the power of sale hereby given or under judgment or decree in any judicial proceedings, for
    the foreclosure or otherwise for the enforcement of this indenture, the principal of all bonds then secured hereby, if not
    previously due, shall become and be immediately due and payable.
	 	 	 
	
        Purchase by bondholder at sale of property

         

         

         

         

         

         

        Bonds as part of purchase price
	 	Section 15.10     Upon
    any sale made either under the power of sale hereby given or under judgment or decree in any judicial proceedings for foreclosure
    or otherwise for the enforcement of this Indenture, any bondholder or bondholders may bid for and purchase the Mortgaged and
    Pledged Property or any part thereof and upon compliance with the terms of sale may hold, retain and possess and dispose of
    such property in his, her, their or its own absolute right without further accountability, and any purchasers at any such
    sale may, in paying the purchase money, turn in any of the bonds Outstanding hereunder and coupons or claims for interest
    outstanding hereunder in lieu of cash to the amount which shall, upon distribution of the net proceeds of such sale, be payable
    thereon, subject, however, to the provisions of Section 15.12 hereof with respect to extended, transferred or pledged
    coupons or claims for interest. Said bonds and coupons, in case the amounts so payable thereon shall be less than the amount
    due thereon, shall be returned to the holders thereof after being appropriately stamped to show partial payment.
	 	 	 
	Receipt of Trustee or sale officer as discharge to purchaser	 	Section 15.11     Upon
    any sale made either under the power of sale hereby given or under judgment or decree in any judicial proceedings for the
    foreclosure or otherwise for the enforcement of this Indenture, the receipt of the Trustee or of the officer making such sale
    shall be a sufficient discharge to the purchaser or purchasers at any sale for his, her, its or their purchase money and such
    purchaser or purchasers, his, her, its or their assigns or personal representatives, shall not, after paying such purchase
    money and receiving such receipt of the Trustee or of such officer therefor, be obliged to see to the application of such
    purchase

 

     

    	 	107	 

    

 

	§§15.11, 15.12	 	 
	 	 	 
	money, or be in anywise answerable for any loss, misapplication or non-application thereof.	 	 
	 	 	 
	Any sale made either under the power of sale hereby given or under judgment or decree in any judicial proceedings for the foreclosure or otherwise for the enforcement of this Indenture shall, if and to the extent then permitted by law, operate to divest all right, title, interest, claim and demand whatsoever, either at law or in equity, of the Company of, in and to the property so sold, and be a perpetual bar both at law and in equity against the Company, its successors and assigns and against any and all persons, firms or corporations claiming or who may claim the property sold; or any part thereof, from, through or under the Company, its successors or assigns.	 	Effect of sale on rights of Company
	 	 	 
	Section 15.12     The
    proceeds of any sale made either under the power of sale hereby given, or under judgment or decree in any judicial proceedings
    for the foreclosure or otherwise for the enforcement of this Indenture, together with any other amounts of cash which may
    then be held by the Trustee, as part of the Mortgaged and Pledged Property, shall be applied, as follows:	 	
        Disposition of proceeds of sale

         

         

         

        Order of application:

	 	 	 
	First.—To the payment of all taxes, assessments, governmental charges, Qualified Liens and liens prior to the Lien of this Indenture, except those subject to which such sale shall have been made, and of all the costs and expenses of such sale, including reasonable compensation to and expenses of the Trustee, its agents and its attorneys, and of all other sums payable to the Trustee hereunder (and any predecessor Trustee) by reason of any expenses or liability incurred (in good faith and without negligence by the Trustee) or advances made in connection with the management or administration of the trusts hereby created in accordance with Section 19.09 hereof;	 	(1)   Taxes, etc., compensation of Trustee
	 	 	 
	Second.—To the payment in full of the amounts then due and unpaid for principal, premium and interest upon the bonds then secured hereby; and in case such proceeds shall be insufficient to pay in full the amounts so due and unpaid, then to the payment thereof ratably, without preference or priority as to principal, premium or interest, or of any installment of interest over any other installment of interest; provided, however, that if the time for the payment of any coupon or claim for interest upon any of the bonds secured hereby shall have been extended (except pursuant to action taken	 	(2)   Principal and interest

 

     

    	 	108	 

    

 

	 	 	§§15.12, 15.13
	 	 	 
	 	 	under Article XXI hereof) by or with the consent of the Company, or if any thereof at or after maturity shall have been transferred or pledged separate from the bond to which they relate, such coupons or claims for interest shall not be entitled in case of Default hereunder to the benefit or security of this Indenture except after the prior payment in full of the principal and premium, if any, of all bonds issued hereunder and then secured hereby and of all coupons and claims for interest on such bonds the payment of which has not been so extended, or not so transferred or pledged; but the foregoing provisions of this paragraph Second shall not be applicable to any coupon or claim for interest the time for the payment of which shall have been extended, if such extension be pursuant to a plan proposed by the Company to all holders of any one or more series of bonds then Outstanding and accepted by and binding upon the holder of such coupon or claim for interest; and
	 	 	 
	(3)   Surplus to Company	 	Third.—Any surplus thereof remaining to the Company, its successors or assigns or to, him, her, them or it whosoever may be lawfully entitled to receive the same.
	 	 	 
	Waiver of advantage of any appraisement,
    valuation, stay, extension or redemption laws and rights to marshal assets	 	Section 15.13     In
    case of a Default, to the extent that such rights may then lawfully be waived, neither the Company nor anyone claiming through
    or under it shall or will set up, claim, or seek to take advantage of any appraisement, valuation, stay, extension or redemption
    laws now or hereafter in force in any locality where any of the Mortgaged and Pledged Property may be situated, in order to
    prevent or hinder the enforcement or foreclosure of this Indenture, or the absolute sale of the Mortgaged and Pledged Property,
    or the final and absolute putting into possession thereof, immediately after such sale, of the purchaser or purchasers thereat,
    but the Company, for itself and all who may claim through or under it, hereby waives, to the extent that it lawfully may so
    do, the benefit of all such laws and all right of appraisement and redemption to which it may be entitled under the laws of
    any State where any of the Mortgaged and Pledged Property may be situated. The Company, for itself and all who may claim through
    or under it, waives, to the extent that it lawfully may do so, any and all right to have the estates comprised in the security
    intended to be created hereby marshalled upon any foreclosure of the Lien hereof, and agrees that any court having jurisdiction
    to foreclose such Lien may sell the Mortgaged and Pledged Property as an entirety.

 

     

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	§15.14	 	 
	 	 	 
	Section 15.14     The
    Company covenants that if default shall be made in the payment of the principal of any bond hereby secured when the same shall
    become payable, whether by the maturity of said bond or otherwise or in the case of a default in the payment of the interest
    on any bond for a period of sixty (60) days after such interest shall have become due and payable, then upon demand of the
    Trustee, the Company will pay to the Trustee, for the benefit of the holders of the bonds and coupons then secured hereby,
    the whole amount due and payable on all such bonds and coupons for principal, premium, if any, and interest, with interest,
    upon the overdue principal at the same rate borne by the bonds which are overdue.	 	Payment of principal and interest by Company
	 	 	 
	In the case of a default in payment of the principal of any bond, when the same shall become due and payable, or in the case of a default in the payment of the interest on any bond for a period of sixty (60) days after such interest shall have become due and payable, the Trustee may recover judgment, in its own name and as trustee of an express trust, against the Company for the whole amount of such principal, interest and any premium remaining unpaid together with interest upon the overdue principal at the same rate borne by the bonds which are overdue.	 	Trustee may recover judgment
	 	 	 
	The Trustee may file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee and of the bondholders allowed in any judicial proceedings relative to the Company or its creditors, or its property. In case of any receivership, insolvency, bankruptcy, reorganization or other similar proceedings affecting the Company or its property, the Trustee, irrespective of whether the principal of the bonds shall then be due and payable and irrespective of whether the Trustee shall have made any demand for such payment, shall be entitled and empowered either in its own name or as trustee of an express trust or as attorney-in-fact for the holders of the bonds and coupons, or in any one or more of such capacities, to file a proof of claim for the whole amount of principal and interest (with interest upon such overdue principal at the same rate borne by the bonds which are overdue) which may be or become owing and unpaid in respect of the bonds and for any additional amount which may be or become payable by the Company hereunder, without regard to or deduction for any amount which may have been or which may thereafter be received, collected or realized by the Trustee from or out of the Mortgaged and Pledged Property or any part thereof or from or out of the proceeds thereof or any part thereof; but nothing in this Indenture contained shall	 	Proofs of claim

 

     

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	 	 	§§15.14, 15.15
	 	 	 
	 	 	authorize the Trustee to accept or consent to any composition or plan of reorganization on behalf of any bondholder.
	 	 	 
	
        Judgment may be taken by Trustee

         

         

         

         

         

         

         

         

        Lien of Indenture not to be affected by judgement or levy of execution
        thereon
	 	The Trustee, to the extent permitted by law, shall be entitled to sue and recover judgment and/or to file and prove such claim as aforesaid either before or after or during the pendency of any proceedings for the enforcement of the Lien of this Indenture upon the Mortgaged and Pledged Property, and in case of a sale of any of the Mortgaged and Pledged Property and of the application of the proceeds of sale to the payment of the debt hereby secured, the Trustee in its own name and as trustee of an express trust, shall be entitled to enforce payment of and to receive all amounts then remaining due and unpaid upon any and all the bonds and coupons then Outstanding hereunder, for the benefit of the holders thereof, and the Trustee shall be entitled to recover judgment for any portion of the debt remaining unpaid, with interest. No recovery of any such judgment by the Trustee and no levy of any execution upon any such judgment upon any of the Mortgaged and Pledged Property or upon any other property shall in any manner or to any extent affect the Lien of this Indenture upon the Mortgaged and Pledged Property or any part thereof, or any rights, powers or remedies of the Trustee hereunder, or any lien, rights, powers or remedies of the holders of said bonds, but such lien, rights, powers and remedies of the Trustee and of the bondholders shall continue unimpaired as before.
	 	 	 
	Application of moneys collected by Trustee	 	Any moneys thus collected or received by the Trustee under this Section shall be applied by it first, to the payment of its expenses, disbursements and compensation and the expenses, disbursements and compensation of its agents and attorneys, and, second, toward payment of the amounts then due and unpaid upon such bonds and coupons in respect of which such moneys shall have been collected, ratably and without preference or priority of any kind (subject to the provisions of Section 15.12 hereof with respect to extended, transferred or pledged coupons and claims for interest), according to the amounts due and payable upon such bonds and coupons, respectively, at the date fixed by the Trustee for the distribution of such moneys, with interest upon overdue principal at the same rate borne by the bonds which are overdue, upon presentation of the several bonds and coupons and upon stamping such payment thereon, if partly paid, and upon surrender thereof, if fully paid.
	 	 	 
	Possession of bonds unnecessary in action by Trustee	 	Section 15.15     All
    rights of action (including the right to file proofs of claim) under this Indenture or under any of the bonds or coupons may

 

     

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	§§15.15, 15.16	 	 
	 	 	 
	be enforced by the Trustee without the possession of any of the bonds or coupons or the production thereof in any trial or other proceeding relating thereto and any such suit or proceeding instituted by the Trustee shall be brought in its name as Trustee, and any recovery of judgment shall be for the equal benefit of the holders of the Outstanding bonds and coupons, subject to the provisions of Section 15.12 hereof with respect to extended, transferred or pledged coupons and claims for interest.	 	 
	 	 	 
	In any proceeding brought by the Trustee (including also any proceeding involving the interpretation of any provision of this Indenture to which the Trustee shall be a party), such Trustee shall be held to represent all the holders of the bonds and coupons secured by this Indenture and it shall not be necessary to make such holders of the bonds and coupons parties to any such proceedings.	 	Bondholders not necessary parties to action
	 	 	 
	Section 15.16     No
    holder of any bond or coupon shall have any right to institute any suit, action or proceeding in equity or at law for the
    foreclosure of this Indenture or for the execution of any trust hereof or for the appointment of a receiver or any other remedy
    hereunder unless such holder shall have previously given to the Trustee written notice of a Default, nor unless also the holders
    of twenty-five per centum (25%) in principal amount of the bonds then Outstanding hereunder shall have made written request
    to the Trustee and shall have offered it reasonable opportunity either to proceed to exercise the powers hereinbefore granted
    or to institute such suit, action or proceeding in its own name and shall have offered to the Trustee security and indemnity
    satisfactory to the Trustee against the costs, expenses and liabilities to be incurred thereby without negligence or bad faith,
    and the Trustee shall have declined to take such action or shall have failed so to do within sixty (60) days thereafter; it
    being understood and intended that no one or more holders of the bonds or coupons shall have any right in any manner whatsoever
    to affect, disturb or prejudice the Lien of this Indenture by his, her, its or their action to enforce any right hereunder
    except in the manner herein provided, and that all proceedings at law or in equity shall be instituted, had and maintained
    in the manner herein provided and for the equal benefit of all holders of Outstanding bonds and coupons. Such notification,
    request and offer of indemnity are hereby declared, at the option of the Trustee, but subject to the provisions of Sections
    19.01 and 19.02 hereof, to be conditions precedent to the execution by it of the powers and trusts of this Indenture and to
    the exercise by it of any action or cause of action or remedy hereunder.	 	Right of bondholders to institute legal proceedings

 

     

    	 	112	 

    

 

	 	 	§§15.16, 15.17; Art. XVI, §16.01
	 	 	 
	Right of bondholders to enforce payment not to be impaired	 	Notwithstanding any other provision of this Indenture, the right of any holder of any bond to receive payment of the principal of and interest on such bond, on or after the respective due dates expressed in such bond, or to institute suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected without the consent of such holder.
	 	 	 
	Waiver of periods of grace	 	Section 15.17     The
    Company may waive any period of grace provided for in this Article.
	 	 	 
	If proceedings abandoned, Trustee and Company restored to former position and rights	 	In case the Trustee shall have proceeded to enforce any right under this Indenture by foreclosure, entry or otherwise, and such proceedings shall have been discontinued or abandoned for any reason, or shall have been determined adversely to the Trustee, then and in every such case the Company and the Trustee shall be restored to their former positions and rights hereunder with respect to the Mortgaged and Pledged Property, and all rights, remedies and powers of the Trustee shall continue as if no such proceedings had been taken.
	 	 	 
	 	 	Article XVI

Evidence of Rights of Bondholders and

Ownership of Bonds
	 	 	 
	
        Execution of instruments by bondholders

         

         

         

        Proof of execution
	 	Section 16.01     Any
    request, declaration or other instrument, which this Indenture may require or permit to be signed and executed by the bondholders,
    may be in any number of concurrent instruments of similar tenor, and shall be signed or executed by such bondholders in person
    or by an attorney appointed in writing. Proof of the execution of any such request or other instrument, or of a writing appointing
    any such attorney, or of the holding by any person of the bonds or coupons appertaining thereto, shall be sufficient (subject,
    in so far as the Trustee is concerned, to the provisions of Section 19.01 and Section 19.02 hereof) for any purpose
    of this Indenture (except as otherwise herein expressly provided) if made in the following manner:
	 	 	 
	(a)   Notary’s certificate	 	(a)  The fact and date of the execution by any person of such request or other instrument or writing may be proved by a witness or by a certificate acknowledged before a Notary Public or other officer authorized to take acknowledgments;
	 	 	 
	(b)   Certificate of trust company, bank, etc.	 	(b)  The amount of bonds transferable by delivery held by any person executing such request or other instrument as a bondholder,

 

     

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	§§16.01, 16.02	 	 
	 	 	 
	and the series and serial numbers thereof, held by such person, and the date of his, her or its holding the same, may be proved by a certificate executed by any trust company, bank, banker or other depositary wherever situated, if such certificate shall be deemed by the Trustee to be satisfactory, showing that at the date therein mentioned such person had on deposit with such depositary the bonds described in such certificate. The Trustee may nevertheless in its discretion require further proof in cases where it deems further proof desirable. The ownership of registered bonds shall be proved by the registry books.	 	 
	 	 	 
	Any request, consent or vote of the owner of any bond shall bind all future holders and owners of said bond or any bond issued in exchange or substitution for said bond in respect of anything done or suffered by the Company or the Trustee in pursuance thereof.	 	Consent or vote binding on future bondholder
	 	 	 
	Section 16.02     The
    Company and the Trustee (or any agent of the Company or the Trustee) may deem and treat the bearer of any temporary or coupon
    bond Outstanding hereunder, which shall not at the time be registered as to principal as hereinbefore authorized, and the
    bearer of any coupon for interest on any such bond, whether such bond shall be registered or not, as the absolute owner of
    such bond or coupon, as the case may be, whether or not such bond or coupon shall be overdue, for the purpose of receiving
    payment thereof or on account thereof and for all other purposes, and neither the Company nor the Trustee shall be affected
    by any notice to the contrary.	 	Ownership of temporary or coupon bonds
	 	 	 
	The Company and the Trustee (and their agents) may, subject to the provisions of this Indenture providing for the use of a record date in certain cases, deem and treat the person in whose name any fully registered bond Outstanding hereunder shall be registered upon the books of the Company, as herein authorized, as the absolute owner of such bond for the purpose of receiving payment of or on account of the principal of and interest on such bond and for all other purposes, and they may deem and treat the person in whose name any coupon bond shall be so registered as to principal as the absolute owner thereof for the purpose of receiving payment of or on account of the principal thereof and for all other purposes, except to receive payment of interest represented by outstanding coupons; and all such payments so made to any such registered owner, or upon his, her or its order, shall be valid and effectual to satisfy and discharge the liability upon such bond to the	 	Ownership of registered bonds

 

     

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	 	 	§16.02; Art. XVII, §17.01
	 	 	 
	Inspection of bonds	 	extent of the sum or sums so paid, and neither the Company nor the Trustee shall be affected by any notice to the contrary. Neither the Company nor the Trustee (or their agents) shall be bound to recognize any person as the holder of a bond Outstanding under this Indenture unless and until his, her or its bond is submitted for inspection, if required, except as may otherwise be provided by regulations made under Section 21.03 hereof, and his, her or its title thereto satisfactorily established, if disputed.
	 	 	 
	 	 	Article XVII

Immunity of Incorporators, Subscribers to the

Capital Stock, Shareholders, Officers and Directors
	 	 	 
	No recourse clause	 	Section 17.01     No
    recourse under or upon any obligation, covenant or agreement contained in this Indenture (including any indenture supplemental
    hereto) or in any bond or coupon hereby secured, or because of the creation of any indebtedness hereby secured, shall be had
    against any incorporator or any past, present or future subscriber to the capital stock, shareholder, officer or director
    of the Company or of any predecessor or successor corporation, as such, either directly or through the Company or any predecessor
    or successor corporation, under any rule of law, statute or constitution or by the enforcement of any assessment or by
    any legal or equitable proceeding or otherwise; it being expressly agreed and understood that this Indenture and the obligations
    hereby secured are solely corporate obligations, and that no such personal liability shall attach to, or be incurred by, such
    incorporators, subscribers to the capital stock, shareholders, officers or directors of the Company or of any predecessor
    or successor corporation, or any of them, as such, because of the incurring 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 bonds or coupons
    hereby secured, or implied therefrom, and that any and all such personal liability of every name and nature, and any and all
    such rights and claims against every such incorporator, subscriber to the capital stock, shareholder, officer or director,
    as such, whether arising at common law or in equity, or created by rule of law, statute, constitution or otherwise, are
    expressly released and waived as a condition of, and as part of the consideration for, the execution of this Indenture and
    the issue of the bonds and interest obligations secured hereby.

 

     

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	Art. XVIII, §§18.01, 18.02	 	 
	 	 	 
	Article XVIII

Effect of Merger, Consolidation, Etc.	 	 
	 	 	 
	Section 18.01     Nothing
    in this Indenture shall prevent any consolidation of the Company with, or merger of the Company into, any corporation having
    corporate authority to carry on any of the businesses mentioned in the first sentence of Section 1.04 hereof, or any
    conveyance, transfer or lease, subject to the Lien of this Indenture, of all or substantially all of the Mortgaged and Pledged
    Property as an entirety to any corporation lawfully entitled to acquire or lease or operate the same; provided, however, and
    the Company covenants and agrees, that such consolidation, merger, conveyance, transfer or lease shall be upon such terms
    as fully to preserve and in no respect to impair the Lien or security of this Indenture, or any of the rights or powers of
    the Trustee or the bondholders hereunder; and provided, further, that any such lease shall be made expressly subject to immediate
    termination by the Company or by the Trustee at any time during the continuance of a Default, and also by the purchaser of
    the property so leased at any sale thereof hereunder, whether such sale be made under the power of sale hereby conferred or
    under judicial proceedings; and provided, further, that, upon any such consolidation, merger, conveyance or transfer, or upon
    any such lease the term of which extends beyond the date of maturity of any of the bonds secured hereby, the due and punctual
    payment of the principal and interest of all said bonds according to their tenor and the due and punctual performance and
    observance of all the covenants and conditions of this Indenture to be kept or performed by the Company shall be expressly
    assumed by an instrument in writing executed and delivered to the Trustee by the corporation formed by such consolidation
    or into which such merger shall have been made, or acquiring all or substantially all the Mortgaged and Pledged Property as
    an entirety, as aforesaid, or by the lessee under any such lease the term of which extends beyond the date of maturity of
    any of the bonds secured hereby.	 	
        Company may merge, consolidate, etc., upon certain terms

         

         

         

         

         

        No impairment of Lien

         

         

         

         

         

         

         

         

         

         

         

         

        Assumption of obligation

	 	 	 
	Section 18.02     In
    case the Company, as permitted by Section 18.01 hereof, shall be consolidated with or merged into any other corporation
    or shall convey or transfer, subject to the Lien of this Indenture, all or substantially all the Mortgaged and Pledged Property
    as an entirety, the successor corporation formed by such consolidation, or into which the Company shall have been merged,
    or which shall have received a	 	Rights of successor corporation

 

     

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	 	 	§18.02
	 	 	 
	
        Execution of indenture

         

         

         

         

         

         

         

         

         

         

         

         

        Execution of bonds, etc., on basis of Property Additions
	 	conveyance or transfer as aforesaid—upon executing with the Trustee and causing to be recorded an indenture whereby such successor corporation shall assume and agree to pay, duly and punctually, the principal of and interest on the bonds issued hereunder in accordance with the provisions of said bonds and coupons and this Indenture, and shall agree to perform and fulfill all the covenants and conditions of this Indenture to be kept or performed by the Company—shall succeed to and be substituted for the Company with the same effect as if it had been named herein, and shall have and may exercise under this Indenture the same powers and rights as the Company, and (without in anywise limiting or impairing by the enumeration of the same the scope and intent of the foregoing general powers and rights) such successor corporation thereafter may cause to be executed, authenticated and delivered, either in its own name or in the name of PacifiCorp, as its name is now or shall then exist, in respect of property of the character defined in Section 1.04 hereof as Property Additions, such bonds as could or might have been executed, issued and delivered by the Company had it acquired such property of such character by purchase on or after the date of such consolidation, merger, conveyance or transfer, and had such consolidation, merger, conveyance or transfer not occurred, and upon the order of such successor corporation in lieu of the Company, and subject to all the terms, conditions and restrictions in this Indenture prescribed, concerning the authentication and delivery of bonds, the Trustee shall authenticate and deliver any bonds delivered to it for authentication which shall have been previously signed by the proper officers of the Company, and such bonds as the successor corporation shall thereafter, in accordance with the provisions of this Indenture, cause to be executed and delivered to the Trustee for such purpose, and such successor corporation shall also have and may exercise in respect of the property of such character, and subject to all the terms, conditions and restrictions in this Indenture prescribed applicable thereto, whether as to withdrawal of cash, release of property, or otherwise, the same powers and rights which the Company might or could exercise had it acquired the property of such character by purchase on or after the date of such consolidation, merger, conveyance or transfer, and had such consolidation, merger, conveyance or transfer not occurred. All the bonds so issued or delivered by the Company shall in all respects have the same legal right and security as the bonds theretofore issued or delivered in accordance with the terms of this Indenture as though all of said bonds had been authenticated and delivered at the date of the

 

     

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	§§18.02, 18.03	 	 
	 	 	 
	execution hereof. As a condition precedent to the execution of such successor corporation and the authentication and delivery by the Trustee of any such additional bonds or the withdrawal of cash or release of property, under any of the provisions of this Indenture, on the basis of property of the character defined in this Indenture as Property Additions acquired, made or constructed by the successor corporation or by any corporation with which the Company or any successor corporation may be so consolidated or into which the Company or any successor corporation may be so merged or to which the Company or any successor corporation may make any such conveyance, the indenture with the Trustee to be executed and caused to be recorded by the successor corporation as in this Section provided, or a subsequent indenture, shall contain a conveyance or transfer and mortgage in terms sufficient to subject such property to the Lien hereof; and provided further that the lien created thereby and the lien thereon shall have similar force, effect and standing as the Lien of this Indenture would have if the Company should not be consolidated with or merged into such other corporation or should not convey or transfer, subject to this Indenture, all or substantially all the Mortgaged and Pledged Property as an entirety, as aforesaid, to such successor corporation, and should itself on or after the date of such consolidation, merger, conveyance or transfer, acquire or construct such property, and in respect thereof should request the authentication and delivery of bonds or the withdrawal of cash or the release of property under the provisions of this Indenture.	 	Proviso
	 	 	 
	Section 18.03     In
    case the Company, as permitted by Section 18.01 hereof, shall be consolidated with or merged into any other corporation,
    or shall convey or transfer, subject to the Lien of this Indenture, all or substantially all the Mortgaged and Pledged Property
    as an entirety as aforesaid, neither this Indenture nor the indenture with the Trustee to be executed and caused to be recorded
    by the successor corporation as in Section 18.02 hereof provided, shall, unless such indenture shall otherwise provide,
    become or be or be required to become or be a lien upon any of the properties or franchises then owned or thereafter acquired
    by the successor corporation (by purchase, consolidation, merger, donation, construction, erection or in any other way) except
    (a) those acquired by it from the Company, and improvements, extensions and additions thereto and renewals and replacements
    thereof, (b) the property made and used by the successor corporation as the basis under	 	Extent of Lien in case of consolidation, etc.;
    Company consolidated or merged into other corporation

 

     

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	 	 	§18.03
	 	 	 
	 	 	any of the provisions of this Indenture for one or more Authorized Purposes, and (c) such franchises, repairs and additional property as may be acquired, made or constructed by the successor corporation (1) to maintain, renew and preserve the franchises covered by this Indenture, or (2) to maintain the property mortgaged and intended to be mortgaged hereunder as an operating system or systems in good repair, working order and condition, or (3) in rebuilding or renewal of property subject to the Lien hereof damaged or destroyed, or (4) in replacement of or substitution for machinery, apparatus, equipment, frames, towers, poles, wire, pipe, tools, implements or furniture, or any other fixtures or personalty, subject to the Lien hereof, which shall have become old, inadequate, obsolete, worn out, unfit, unadapted, unserviceable, undesirable or unnecessary for use in the operation of the property mortgaged and intended to be mortgaged hereunder.
	 	 	 
	Other corporation consolidated or merged into Company	 	In case any other corporation shall be merged or consolidated into the Company with the result that the Company shall be the surviving corporation, this Indenture shall not (unless an indenture supplemental hereto shall otherwise provide) become or be required to become or be a lien upon any of the properties or franchises owned by such other corporation at the time of the merger or consolidation, or later improvements, extensions or additions thereto or renewals or replacements thereof, except (a) property made and used by the Company as the basis under any of the provisions of this Indenture for one or more Authorized Purposes, and (b) such franchises, repairs and additional property as may be acquired, made or constructed by the Company (1) to maintain, renew and preserve the franchises covered by this Indenture, or (2) to maintain the property mortgaged and intended to be mortgaged hereunder as an operating system or systems in good repair, working order and condition, or (3) in rebuilding or renewal of property subject to the Lien hereof damaged or destroyed, or (4) in replacement of or substitution for machinery, apparatus, equipment, frames, towers, poles, wire, pipe, tools, implements or furniture, or any other fixtures or personalty, subject to the Lien hereof, which shall have become old, inadequate, obsolete, worn out, unfit, unadapted, unserviceable, undesirable or unnecessary for use in the operation of the property mortgaged and intended to be mortgaged hereunder.

 

     

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	Art. XIX, §§19.01, 19.02	 	 
	 	 	 
	Article XIX

Concerning the Trustee	 	 
	 	 	 
	Section 19.01     The
Trustee shall at all times be a bank or trust company eligible under Section 9.03 hereof and have a combined capital and
surplus of not less than Five Million Dollars ($5,000,000) or the foreign currency equivalent thereof. If the Trustee publishes
reports of condition at least annually, pursuant to law or to the requirement of any supervising or examining authority referred
to in Section 9.03 hereof, then for the purposes of this Section the combined capital and surplus of the Trustee shall
be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.
	 	Qualification of Trustee
	 	 	 
	The Trustee hereby accepts the trust hereby created. The Trustee undertakes, prior to Default, and after the curing of all such Defaults which may have occurred, to perform such duties and only such duties as are specifically set forth in this Indenture, and in case of such Default (which has not been cured) to exercise such of the rights and powers vested in it by this Indenture, and to use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs. For the purposes of this Section 19.01 and of Section 19.02 hereof a Default shall be deemed cured when the act or omission or other event giving rise to such Default shall have been cured, remedied, terminated or waived.	 	Acceptance of Trust
	 	 	 
	The Trustee, upon receipt of evidence furnished to it by or on behalf of the Company pursuant to any provision of this Indenture, will examine the same to determine whether or not such evidence conforms to the requirements of this Indenture.	 	 
	 	 	 
	Section 19.02     No
    provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own
    negligent failure to act, or its own willful misconduct, except that	 	Trustee’s liability generally
	 	 	 
	(a)  prior to Default, and after the curing of all such Defaults which may have occurred, the Trustee shall not be liable except for the performance of such duties as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee but the duties and obligations of the Trustee, prior to Default, and after the curing of all such Defaults which may have occurred, shall be determined solely by the express provisions of this Indenture; and	 	 

 

     

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	 	 	§§19.02
	 	 	 
	 	 	(b)  prior to Default, and after the curing of all such Defaults which may have occurred, and in the absence of bad faith on the part of the Trustee, the Trustee may conclusively rely as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions conforming to the requirements of this Indenture; and
	 	 	 
	 	 	(c)  no Trustee which is a corporation shall be personally liable for any error of judgment made in good faith by a Responsible Officer or Responsible Officers of such Trustee unless it shall be proved that such Trustee was negligent in ascertaining the pertinent facts and no Trustee who is an individual shall be personally liable for any error of judgment made in good faith by him or her unless it shall be proved that he or she was negligent in ascertaining the pertinent facts; and
	 	 	 
	 	 	(d)  the Trustee shall not be personally liable with respect to any action suffered, taken or omitted to be taken by it in good faith in accordance with the direction of the holders of not less than a majority in principal amount of the bonds at the time Outstanding (determined as provided in Section 15.07 hereof) relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee under this Indenture; and
	 	 	 
	Trustee may act through agents, etc.	 	(e)  the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney, who is not, in either case, an employee of the Trustee, appointed with due care by it hereunder; and
	 	 	 
	 	 	(f)  the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the holders of bonds of any series pursuant to this Indenture, unless such holders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.
	 	 	 
	 	 	The provisions of this Section, which have been made specifically applicable to the Trustee, shall apply to the Trustee and, if a separate or co-trustee is appointed pursuant to Section 19.16 hereof, to any separate or co-trustee.

 

     

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	§§19.03, 19.04, 19.05, 19.06	 	 
	 	 	 
	Section 19.03     The
    recitals contained herein and in the bonds shall be taken as the statements of the Company and the Trustee assumes no responsibility
    for the correctness of the same. The Trustee makes no representations as to the condition, genuineness, validity or value
    of the Mortgaged and Pledged Property or any part thereof, or as to the title of the Company thereto, or as to the validity
    or adequacy of the security afforded thereby and hereby, or as to the validity of this Indenture or of the bonds or coupons
    issued hereunder. The Trustee shall be under no responsibility or duty with respect to the disposition of any bonds authenticated
    and delivered hereunder or the application of the proceeds thereof or the application of any moneys paid to the Company under
    any of the provisions hereof.	 	Recitals herein and in bonds those of Company
	 	 	 
	Section 19.04     The
    Trustee and any separate or co-trustee shall not be personally liable in case of entry by it upon the Mortgaged and Pledged
    Property for debts contracted or liability or damages incurred in the management or operation of said property.	 	Trustee not personally liable in case of entry
	 	 	 
	The Trustee, any paying agent, bond registrar, or authenticating agent, in its individual or any other capacity, may become the holder, owner or pledgee of bonds or coupons secured hereby and, subject to Sections 19.11 and 19.12 hereof, may otherwise deal with the Company with the same rights it would have if it were not Trustee, paying agent, bond registrar or authenticating agent.	 	Trustee, etc. may own bonds and coupons
	 	 	 
	Section 19.05     Whenever
    it is provided in this Indenture that the Trustee shall take any action upon the happening of a specified event or upon the
    fulfillment of any condition or upon the request of the Company or of bondholders, the Trustee taking such action shall have
    full power to give any and all notices and to do any and all acts and things incidental to such action.	 	Trustee’s power to give notice
	 	 	 
	Section 19.06     Any
    notice or demand which by any provision of this Indenture is required or permitted to be given or served by the Trustee on
    the Company shall be deemed to have been sufficiently given or served, for all purposes, by being deposited postage prepaid
    in a post office letter box addressed (until another address is filed by the Company with the Trustee for the purpose of this
    Section) to the Company at the address given in Section 22.08 hereof.	 	Notice by Trustee to Company

 

     

    	 	122	 

    

 

		 	§§19.07, 19.08 
	 	 	 
	 	 	Section 19.07     To
the extent permitted by Sections 19.01 and 19.02 hereof:
	 	 	 
	Trustee protected	 	(1) 
The Trustee may rely and shall be protected in acting upon any Resolution, Officers’ Certificate, Engineer’s Certificate, Inde-
pendent Engineer’s Certificate, Net Earning Certificate, Opinion of Counsel, resolution, certificate, opinion, notice, request,
consent, order, appraisal, report, bond or other paper or document believed by it to be genuine and to have been signed or presented
by the proper party or parties; and any request or direction of the Company mentioned herein shall be sufficiently evidenced by
an Officers’ Certificate, Resolution or written order given as required by any provision hereof; and
	 	 	 
	Trustee may consult with counsel	 	(2) 
The Trustee may consult with counsel, who may be of counsel to the Company, and the opinion of such counsel shall be full and
complete authorization and protection in respect of any action taken or omitted or suffered by it hereunder in good faith and
in accordance with the opinion of such counsel.
	 	 	 
	 	 	The
Trustee shall not be under any responsibility for the selection, appointment or approval of any expert for any of the purposes
expressed in this Indenture, except that nothing in this Section contained shall relieve the Trustee of its obligation to
exercise reasonable care with respect to such selection, appointment or approval of independent experts who may furnish opinions
or certificates to the Trustee pursuant to any provision of this Indenture.
	 	 	 
	 	 	Nothing
contained in this Section shall be deemed to modify the obligation of the Trustee to exercise during the continuance of a
Default, the rights and powers vested in it by this Indenture with the degree of care and skill specified in Section 19.01
hereof.
	 	 	 
	Trustee
    need not segregate funds  

     

    Interest
    on funds with Trustee    
	 	Section 19.08     Subject
to the provisions of Section 22.03 hereof, all moneys received by the Trustee whether as Trustee or paying agent shall, until
used or applied as herein provided, be held in trust for the purposes for which they were paid, but need not be segregated from
other funds except to the extent required by law. The Trustee may allow and credit to the Company interest on any moneys received
by it hereunder at such rate, if any, as may be agreed upon with the Company from time to time and as may be permitted by law.

 

     

    	 	123	 

    

  

	§§19.08,
    19.09	 	 
	 	 	 
	None
    of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur
    personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers, if
    there is reasonable ground for believing that the repayment of such funds or liability is not reasonably assured
 to it.	 	 
	 	 	 
	Section 19.09     The
    Company covenants and agrees to pay to the Trustee from time to time, and the Trustee shall be entitled to, reasonable compensation
    for all services rendered by it in the execution of the trusts hereby created and in the exercise and performance of any of
    the powers and duties hereunder of the Trustee, which compensation shall not be limited by any provision of law in regard
    to the compensation of a trustee of an express trust, and the Company will reimburse the Trustee for all appropriate advances
    made by the Trustee and will pay to the Trustee from time to time its expenses and disbursements (including the reasonable
    compensation and the expenses and disbursements of its agents and all other persons not regularly in its employ and of its
    counsel), except to the extent that any such expense or disbursement results from the Trustee’s negligence or bad faith.
    The Company also covenants to indemnify the Trustee for, and to hold it harmless against, any loss, liability or expense arising
    out of or in connection with the acceptance or administration of this Indenture or performance of its duties hereunder, including
    the costs and expenses of defending against any claim of liability in the premises, except to the extent that any such expense,
    loss, liability or disbursement results from the Trustee’s negligence or bad faith. The obligations of the Company under
    this Section shall survive the resignation or discharge of the Trustee and the satisfaction and discharge of this Indenture,
    and to secure such obligations the Trustee shall have (in addition to any other rights under this Indenture) a lien prior
    to that of the bonds upon the Mortgaged and Pledged Property, including all property and funds held or collected by the Trustee.	 	Compensation
    of
    Trustee
	 	 	 
	If,
    and to the extent that, the Trustee and its counsel and other persons not regularly in its employ do not receive compensation
    for services rendered, reimbursement of its or their advances, expenses and disbursements, or indemnity, as herein provided,
    as the result of allowances made in any reorganization, bankruptcy, receivership, liquidation or other proceeding or by any
    plan of reorganization or readjustment	 	 

 

     

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	 	 	§§19.09,
    19.10, 19.11
	 	 	 
		 	of
    obligations of the Company, the Trustee shall be entitled, in priority to the holders of the bonds, to receive any
    distribution of any securities, dividends or other disbursements which would otherwise be made to the holders of bonds in any
    such proceeding or proceedings and the Trustee is hereby constituted and appointed, irrevocably, the attorney-in-fact for the
    holders of the bonds and each of them to collect and receive, in their name, place and stead, such distributions, dividends
    or other disbursements, to deduct therefrom the amounts due to the Trustee, its counsel and other persons not regularly in
    its employ on account of services rendered, advances, expenses, and disbursements made or incurred, or indemnity, and to pay
    and distribute the balance, pro rata, to the holders of the bonds. The Trustee shall have a lien upon any securities or other
    considerations to which the holders of bonds may become entitled pursuant to any such plan of reorganization or readjustment
    of obligations, or in any such proceeding or proceedings; and the court or judge in any such proceeding or proceedings may
    determine the terms and conditions under which any such lien shall exist and be enforced.
	 	 	 
	“Trustee”	 	The
    term “Trustee” used in this Section includes any predecessor Trustee, provided that the negligence and bad
    faith of any Trustee shall not affect the rights of any other Trustee under this Section 19.09.
	 	 	 
	Trustee
    may request proof by certificate signed by certain officers	 	Section 19.10    Whenever
    in the administration of the trusts of this Indenture, prior to a Default, and after the curing of any such Default, the Trustee
    shall deem it necessary or desirable that a matter be proved or established prior to taking or omitting or suffering any action
    hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may to the extent permitted
    by Sections 19.01 and 19.02 hereof be deemed to be conclusively proved and established by a certificate signed by an Authorized
    Executive Officer of the Company, and by the Secretary or an Assistant Secretary or an Authorized Financial Officer of the
    Company and delivered to the Trustee, and such certificate shall be full warrant to the Trustee for any action taken, omitted
    or suffered by it under the provisions of this Indenture upon the faith thereof.
	 	 	 
	Action
    to be taken by Trustee who becomes creditor of Company	 	Section 19.11    (a) Subject
    to the provisions of subdivision (b) of this Section, if the Trustee shall be or shall become a creditor, directly or
    indirectly, secured or unsecured, of the Company within four months prior to a default (as defined in the last paragraph of
    this subdivision), or subsequent to such a default, then, unless and until such default shall be cured, the Trustee shall
    set apart and hold in a special account for the

 

     

    	 	125	 

    

 

	§19.11	 	 
	 	 	 
	benefit
    of the Trustee individually, the holders of the bonds, and the holders of other indenture securities (as defined in the last
    paragraph of this subdivision (a))	 	 
	 	 	 
	(1) 
    an amount equal to any and all reductions in the amount due and owing upon any claim as such creditor in respect of principal
    or interest effected after the beginning of such four months period and valid as against the Company and its other creditors,
    except any such reduction resulting from the receipt or disposition of any property described in paragraph (2) of this
    subdivision (a) or from the exercise of any right of setoff which the Trustee could have exercised if a petition in bankruptcy
    had been filed by or against the Company upon the date of such default; and	 	 
	 	 	 
	(2) 
    all property received in respect of any claim as such creditor, either as security therefor, or in satisfaction or composition
    thereof, or otherwise, after the beginning of such four months period, or an amount equal to the proceeds of any such property,
    if disposed of, subject, however, to the rights, if any, of the Company and its other creditors in such property or such proceeds.	 	 
		 	 
	Nothing
    herein contained, however, shall affect the right of the Trustee	 	Certain rights of Trustee unaffected
	 	 	 
	(A) 
    to retain for its own account (i) payments made on account of any such claim by any person (other than the Company) who
    is liable thereon, and (ii) the proceeds of the bona fide sale of any such claim by the Trustee to a third person, and
    (iii) distributions made in cash, securities, or other property in respect of claims filed against the Company in bankruptcy
    or receivership or in proceedings for reorganization pursuant to the Federal Bankruptcy Act or applicable State law;	 	 
	 	 	 
	(B) 
    to realize for its own account, upon any property held by it as security for any such claim, if such property were so held
    prior to the beginning of such four months period;	 	 
	 	 	 
	(C) 
    to realize, for its own account, but only to the extent of the claim hereinafter mentioned, upon any property held by it as
    security for any such claim, if such claim was created after the beginning of such four months period and such property was
    received as security therefor simultaneously with the creation thereof, and if the Trustee shall sustain the burden of proving
    that at the time such property	 	 

 

     

    	 	126	 

    

 

	 	 	§19.11
	 	 	 
	 	 	was
    so received the Trustee had no reasonable cause to believe that a default as defined in the last paragraph of this subdivision
    (a) would occur within four months; or
	 	 	 
	 	 	(D) 
    to receive payment on any claim referred to in paragraph (B) or (C), against the release of any property held as security
    for such claim as provided in paragraph (B) or (C), as the case may be, to the extent of the fair value of such property.
	 	 	 
	 	 	For
    the purposes of paragraphs (B), (C) and (D), property substituted after the beginning of such four months period for
    property held as security at the time of such substitution shall, to the extent of the fair value of the property released,
    have the same status as the property released, and, to the extent that any claim referred to in any of such paragraphs is
    created in renewal of or in substitution for or for the purpose of repaying or refunding any pre-existing claim of the
    Trustee as such creditor, such claim shall have the same status as such pre-existing claim.
	 	 	 
	Apportionment
    of proceeds among Trustee, bondholders,  etc.	 	If
    the Trustee shall be required to account, the funds and property held in such special account and the proceeds thereof shall
    be apportioned between the Trustee, the bondholders, and the holders of other indenture securities in such manner that the
    Trustee, the bondholders, and the holders of other indenture securities realize, as a result of payments from such special
    account and payments of dividends on claims filed against the Company in bankruptcy or receivership or in proceedings for
    reorganization pursuant to the Federal Bankruptcy Act or applicable State law, the same percentage of their respective claims,
    figured before crediting to the claim of the Trustee anything on account of the receipt by it from the Company of the funds
    and property in such special account and before crediting to the respective claims of the Trustee, the bondholders, and the
    holders of other indenture securities dividends on claims filed against the Company in bankruptcy or receivership or in proceedings
    for reorganization pursuant to the Federal Bankruptcy Act or applicable State law, but after crediting thereon receipts on
    account of the indebtedness represented by their respective claims from all sources other than from such dividends and from
    the funds and property so held in such special account. As used in this paragraph, with respect to any claim, the term “dividends”
    shall include any distribution with respect to such claim, in bankruptcy or receivership or in proceedings for reorganization
    pursuant to the Federal Bankruptcy Act or applicable

 

     

    	 	127	 

    

 

	§19.11	 	 
		 	 
	State
    law, whether such distribution is made in cash, securities, or other property, but shall not include any such distribution
    with respect to the secured portion, if any, of such claim. The court in which such bankruptcy, receivership or proceeding
    for reorganization is pending shall have jurisdiction (i) to apportion between the Trustee, the bondholders, and the
    holders of other indenture securities, in accordance with the provisions of this paragraph, the funds and property held in
    such special account and the proceeds thereof, or (ii) in lieu of such apportionment, in whole or in part, to give to
    the provisions of this paragraph due consideration in determining the fairness of the distributions to be made to the Trustee,
    the bondholders, and the holders of other indenture securities, with respect to their respective claims, in which event it
    shall not be necessary to liquidate or to appraise the value of any securities or other property held in such special account
    or as security for any such claim, or to make a specific allocation of such distributions as between the secured and unsecured
    portions of such claims, or otherwise to apply the provisions of this paragraph as a mathematical formula.	 	 
	 	 	 
	Any
    Trustee who has resigned or been removed after the beginning of such four months period shall be subject to the provisions
    of this subdivision (a) as though such resignation or removal had not occurred. If any Trustee has resigned or been removed
    prior to the beginning of such four months period, it shall be subject to the provisions of this subdivision (a) if and
    only if the following conditions exist–	 	Resigned
    or removed Trustee
	 	 	 
	(i) 
    the receipt of property or reduction of claim which would have given rise to the obligation to account, if such Trustee had
    continued as Trustee, occurred after the beginning of such four months period; and	 	 
	 	 	 
	(ii) 
    such receipt of property or reduction of claim occurred within four months after such resignation or removal.	 	 
	 	 	 
	As
    used in this Section, the term “default” means any failure to make payment in full of the principal of or interest
    upon the bonds or upon the other indenture securities when and as such principal or interest becomes due and payable; and
    the term “other indenture securities” means securities upon which the Company is an obligor (as defined in the
    Trust Indenture Act) outstanding under any other indenture (a) under which the Trustee is also trustee, (b) which
    contains provisions substantially similar to the provisions of this subdivision (a), and (c) under which a default exists
    at the time of the apportionment of the funds and property held in said special account.	 	“default”

 

     

    	 	128	 

    

  

	 	 	§19.11
	 	 	 
	Certain
    creditor relationships excluded	 	(b) 
    There shall be excluded from the operation of subdivision (a) of this Section a creditor relationship arising from—
	 	 	 
	 	 	(1) 
    the ownership or acquisition of securities issued under any indenture, or any security or securities having a maturity of
    one (1) year or more at the time of acquisition by the Trustee;
	 	 	 
	 	 	(2) 
    advances authorized by a receivership or bankruptcy court of competent jurisdiction or by this Indenture for the purpose of
    preserving the property subject to the Lien of this Indenture or of discharging tax liens or other prior liens or encumbrances
    on the trust estate, if notice of such advance and of the circumstances surrounding the making thereof is given to the bondholders
    as provided in subdivisions (a), (b) and (c) of Section 19.13 hereof with respect to advances by the Trustee
    as such;
	 	 	 
	 	 	(3) 
    disbursements made in the ordinary course of business in the capacity of trustee under an indenture, transfer agent, registrar,
    custodian, paying agent, fiscal agent or depositary, or other similar capacity;
	 	 	 
	 	 	(4) 
    an indebtedness created as a result of services rendered or premises rented; or an indebtedness created as a result of goods
    or securities sold in a cash transaction as defined in the last paragraph of this subdivision (b);
	 	 	 
	 	 	(5) 
    the ownership of stock or of other securities of a corporation organized under the provisions of Section 25(a) of
    the Federal Reserve Act, as amended, which is directly or indirectly a creditor of the Company; or
	 	 	 
	 	 	(6) 
    the acquisition, ownership, acceptance or negotiation of any drafts, bills of exchange, acceptances or obligations which fall
    within the classification of self-liquidating paper as defined in the last paragraph of this subdivision (b).
	 	 	 
	“security”

                                                       

                                                       

                                                      “cash
                                         transaction”

                                                       

                                                       

                                                      “self-
                                         liquidating paper” 

                                                      
	 	As
    used in this Section, the term “security” shall have the meaning assigned to such term in the Securities Act of
    1933, as amended and in force on the date of the execution of this Indenture; the term “cash transaction” shall
    mean any transaction in which full payment for goods or securities sold is made within seven days after delivery of the goods
    or securities in currency or in checks or other orders drawn upon banks or bankers and payable upon demand; the term “self-liquidating
    paper” shall mean any draft, bill of exchange, acceptance or obligation which is made, drawn, negotiated or incurred
    by the Company for the purpose

 

     

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	§§19.11,
    19.12	 	 
	 	 	 
	of
    financing the purchase, processing, manufacture, shipment, storage or sale of goods, wares or merchandise and which is secured
    by documents evidencing title to, possession of, or a lien upon, the goods, wares or merchandise or the receivables or proceeds
    arising from the sale of the goods, wares or merchandise previously constituting the security, provided the security is received
    by the Trustee simultaneously with the creation of the creditor relationship with the Company arising from the making, drawing,
    negotiating or incurring of the draft, bill of exchange, acceptance or obligation; and the term “Trustee” shall
    include the Trustee, and any separate trustee or co-trustee appointed pursuant to Section 19.16 hereof.	 	Trustee
	 	 	 
	Section 19.12     (a) 
    If the Trustee has or acquires any conflicting interest, as defined by subdivision (d) of this Section, the Trustee shall
    within ninety (90) days after ascertaining that it has such conflicting interest, either eliminate such conflicting interest
    or resign by giving written notice to the Company, but such resignation shall not become effective until the appointment of
    a successor trustee and such successor’s acceptance of such appointment. The Company covenants to take prompt steps
    to have a successor appointed in the manner hereinafter provided in Section 19.15 hereof. Upon giving such notice of
    resignation, the resigning Trustee shall publish notice thereof in a Daily Newspaper of general circulation in the Borough
    of Manhattan, The City of New York, New York, and in a Daily Newspaper of general circulation in the City of Portland, Oregon,
    once, provided, however, that if all bonds then Outstanding shall be registered, no notice need be given except by mail in
    accordance with subdivision (c) of Section 19.13 hereof. If the resigning Trustee fails to give such notice within
    ten (10) days after giving written notice of resignation to the Company, the Company shall give such notice.	 	Effect
    of conflicting interest on part of Trustee 
		 	
	(b) 
    In the event that the Trustee shall fail to comply with the provisions of the preceding subdivision (a) of this Section,
    the Trustee shall within ten (10) days after the expiration of such ninety (90) day period transmit notice of such failure
    to the bondholders in the manner and to the extent provided in subdivision (c) of Section 19.13 hereof with respect
    to reports pursuant to subdivision (a) of Section 19.13 hereof.	 	Notice
    of conflict to bond-holders 
	 	 	 
	(c) 
    Subject to the provisions of Section 22.06 hereof, any bondholder who has been a bona fide holder of a bond or bonds
    for at least six months may, on behalf of himself, herself or itself and all others similarly situated, petition any court
    of competent jurisdiction for the removal of	 	Bondholder
    petition to remove Trustee  

 

     

    	 	130	 

    

 

	 	 	$19.12
	 	 	
	 	 	the
    Trustee and the appointment of a successor if the Trustee fails, after written request therefor by such holder, to comply
    with the provisions of subdivision (a) of this Section.
	 	 	 
	Conflicting
    Interest: 	 	(d) 
    The Trustee shall be deemed to have a conflicting interest if—
	 	 	 
	(1)   
    Trusteeship under another indenture of Company  	 	(1) 
    such Trustee is trustee under another indenture under which any other securities, or certificates of interest or participation
    in any other securities, of the Company, are outstanding unless such other indenture is a collateral trust indenture under
    which the only collateral consists of bonds issued under this Indenture; provided that there shall be excluded from the operation
    of this paragraph (1) another indenture or indentures under which other securities, or certificates of interest or participation
    in other securities, of the Company are outstanding, if the Company shall have sustained the burden of proving, on application
    to the Securities and Exchange Commission and after opportunity for hearing thereon, that trusteeship under this Indenture
    and such other indenture is not so likely to involve a material conflict of interest as to make it necessary in the public
    interest or for the protection of investors to disqualify the Trustee from acting as such under one of such indentures;
	 	 	 
	(2)
      Obligor on bonds or under-writer of Company	 	(2) 
    the Trustee or any of its directors or executive officers is an obligor upon the bonds or an underwriter for the Company;
	 	 	 
	(3)
       Direct, indirect or common control	 	(3) 
    the Trustee directly or indirectly controls or is directly or indirectly controlled by or is under direct or indirect common
    control with the Company or an underwriter for the Company;
	 	 	 
	(4)
       Certain employees in common; exceptions 	 	(4) 
    the Trustee or any of its directors or executive officers is a director, officer, partner, employee, appointee or representative
    of the Company, or of an underwriter (other than the Trustee itself) for the Company who is currently engaged in the business
    of underwriting, except that (A) one individual may be a director and/or an executive officer of the Trustee and a director
    and/or an executive officer of the Company, but may not be at the same time an executive officer of both the Trustee and the
    Company; (B) if and so long as the number of directors of the Trustee in office is more than nine, one additional individual
    may be a director and/or an executive officer of the Trustee and a director of the Company; and (C) the Trustee may be
    designated by the Company or by any underwriter for the Company to act in the capacity of transfer agent, registrar,

 

     

    	 	131	 

    

 

	§19.12	 	 
	 	 	 
	custodian,
    paying agent, fiscal agent, escrow agent or depositary or in any other similar capacity or, subject to the provisions of paragraph
    (1) of this subdivision (d), to act as trustee, whether under an indenture or otherwise;	 	 
	 	 	 
	(5) 
    ten per centum (10%) or more of the voting securities of the Trustee is beneficially owned either by the Company or by any
    director, partner or executive officer thereof, or twenty per centum (20%) or more of such voting securities is beneficially
    owned, collectively, by any two or more of such persons; or ten per centum (10%) or more of the voting securities of the Trustee
    is beneficially owned either by an underwriter for the Company or by any director, partner or executive officer thereof, or
    is beneficially owned, collectively, by any two or more such persons;	 	(5)   
    Ownership of voting securities of Trustee 
	 	 	 
	(6) 
    the Trustee is the beneficial owner of or holds as collateral security for an obligation which is in default, (A) five
    per centum (5%) or more of the voting securities or ten per centum (10%) or more of any other class of security of the Company,
    not including the bonds issued under this Indenture and securities issued under any other indenture under which the Trustee
    is also trustee, or (B) ten per centum (10%) or more of any class of security of an underwriter for the Company;	 	(6)   
    Ownership of securities of Company or underwriter of Company
	 	 	 
	(7) 
    the Trustee is the beneficial owner of, or holds as collateral security for an obligation which is in default, five per centum
    (5%) or more of the voting securities of any person who, to the knowledge of the Trustee, owns ten per centum (10%) or more
    of the voting securities of, or controls directly or indirectly or is under direct or indirect common control with, the Company;	 	(7)   
    Ownership of voting securities of person affiliated with Company
	 	 	 
	(8) 
    the Trustee is the beneficial owner of or holds as collateral security for an obligation which is in default, ten per centum
    (10%) or more of any class of security of any person who, to the knowledge of the Trustee, owns fifty per centum (50%) or
    more of the voting securities of the Company; or	 	(8)   
    Ownership of any securities of person affiliated with Company
	 	 	 
	(9) 
    the Trustee owns on May 15 in any calendar year in the capacity of executor, administrator, testamentary or inter vivos
    trustee, guardian, committee or conservator, or in any other similar capacity, an aggregate of twenty-five per centum (25%)
    or more of the voting securities or of any class of security, of any person, the beneficial ownership of a specified percentage
    of which would have	 	(9)  
    Ownership as executor, etc., of securities of certain persons specified above 

 

     

    	 	132	 

    

 

	 	 	§19.12
	 	 	 
	 	 	constituted
    a conflicting interest under paragraph (6), (7) or (8) of this subdivision (d). As to any such securities of which
    such Trustee acquired ownership through becoming executor, administrator or testamentary trustee of an estate which included
    them, the provisions of the preceding sentence shall not apply for a period of two years from the date of such acquisition,
    to the extent that such securities included in such estate do not exceed twenty-five per centum (25%) of such voting securities
    or twenty-five per centum (25%) of any such class of security. Promptly after May 15 in each calendar year, the Trustee
    shall review its holdings of such securities in any of the above-mentioned capacities as of May 15. If the Company fails
    to make payment in full of principal or interest upon the bonds when and as the same becomes due and payable, and such failure
    continues for thirty (30) days thereafter, the Trustee shall promptly review its holdings of such securities in any of the
    above-mentioned capacities as of the date of the expiration of such thirty (30) day period and after such date, notwithstanding
    the foregoing provisions of this paragraph, all such securities so held by the Trustee with sole or joint control over such
    securities vested in it, shall, but only so long as such failure shall continue, be considered as though beneficially owned
    by the Trustee for the purposes of paragraphs (6), (7) and (8) of this subdivision (d).
	 	 	 
	 	 	The
    specifications of percentages in paragraphs (5) to (9), inclusive, of this subdivision (d) shall not be construed
    as indicating that the ownership of such percentages of the securities of a person is or is not necessary or sufficient to
    constitute direct or indirect control for the purposes of paragraph (3) or (7) of this subdivision (d).
	 	 	 
	“security”

                                                       

        “securities”
	 	For
    the purposes of paragraphs (6), (7), (8) and (9) of this subdivision (d) only, (A) the terms “security”
    and “securities” shall include only such securities as are generally known as corporate securities, but shall
    not include any note or other evidence of indebtedness issued to evidence an obligation to repay moneys lent to a person by
    one or more banks, trust companies or banking firms or any certificate of interest or participation in any such note or evidence
    of indebtedness; (B) an obligation shall be deemed to be in default when a default in payment of principal shall have
    continued for thirty (30) days or more and shall not have been cured; and (C) the Trustee shall not be deemed to be the
    owner or holder of (i) any security which it holds as collateral security (as trustee or otherwise) for an obligation
    which is not in default as above defined, or (ii) any security

  

     

    	 	133	 

    

 

	§19.12	 	 
	 	 	 
	which
it holds as collateral security under this Indenture, irrespective of any default hereunder, or (iii) any security which
it holds as agent for collection, or as custodian, escrow agent or depositary, or in any similarly representative capacity.	 	 
	 	 	 
	The
percentages of voting securities and other securities specified in this Section shall be calculated in accordance with the
following provisions:	 	Calculation
of percentage of securities
	 	 	 
	(aa)
A specified percentage of the voting securities of the Trustee, the Company or any other person referred to in this Section (each
of whom is referred to as a “person” in this paragraph) means such amount of the outstanding voting securities of
such person as entitles the holder or holders thereof to cast such specified percentage of the aggregate votes which the holders
of all the outstanding voting securities of such person are entitled to cast in the direction or management of the affairs of
such person.	 	

                                                   

                                                   

                                                  “person”

	 	 	 
	(bb)
A specified percentage of a class of securities of a person means such percentage of the aggregate amount of securities of the
class outstanding.	 	 
	 	 	 
	(cc)
The term “amount”, when used in regard to securities, means the principal amount if relating to evidences of indebtedness,
the number of shares if relating to capital shares, and the number of units if relating to any other kind of security.	 	“amount”
	 	 	 
	(dd)
The term “outstanding” means issued and not held by or for the account of the issuer. The following securities shall
not be deemed outstanding within the meaning of this definition:	 	“outstanding”
	 	 	 
	(1) 
Securities of an issuer held in a sinking fund relating to securities of the issuer of the same class;	 	 
	 	 	 
	(2) 
Securities of an issuer held in a sinking fund relating to another class of securities of the issuer, if the obligation evidenced
by such other class of securities is not in default as to principal or interest or otherwise;	 	 
	 	 	 
	(3) 
Securities pledged by the issuer thereof as security for any obligation of the issuer not in default as to principal or interest
or otherwise;	 	 
	 	 	 
	(4) 
Securities held in escrow if placed in escrow by the issuer thereof;	 	 

 

     

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	 	 	§19.12
	 	 	 
	 	 	provided,
    however, that any voting securities of an issuer shall be deemed outstanding if any person other than the issuer is entitled
    to exercise the voting rights thereof.
	 	 	 
	 	 	(ee)     A
    security shall be deemed to be of the same class as another security if both securities confer upon the holder or holders
    thereof substantially the same rights and privileges; provided, however, that, in the case of secured evidences of indebtedness,
    all of which are issued under a single indenture, differences in the interest rates or maturity dates of various series thereof
    shall not be deemed sufficient to constitute such series of different classes, and provided, further, that, in the case of
    unsecured evidences of indebtedness, differences in the interest rates or maturity dates thereof shall not be deemed sufficient
    to constitute the securities of different classes, whether or not they are issued under a single indenture.
	 	 	 
	Application
    of Section to Trustee and separate or co-trustee	 	The
    provisions of this Section which have been made specifically applicable to the Trustee shall apply to the Trustee, and,
    if a separate or co-trustee is appointed pursuant to Section 19.16 hereof, to any separate or co-trustee, except that
    in case of the resignation of a separate or co-trustee such resignation and the appointment of a successor shall (subject
    to the provisions of subdivision (c) of this Section) be governed by the provisions of Section 19.15 and paragraph
    (3) of Section 19.16 hereof.
	 	 	 
	“underwriter”	 	The
    term “underwriter” when used with reference to the Company means every person who, within three years prior to
    the time as of which the determination is made, has purchased from the Company with a view to, or has offered or sold for
    the Company in connection with, the distribution of any security of the Company outstanding at such time, or has participated
    or has had a direct or indirect participation in any such undertaking, or has participated or has had a participation in the
    direct or indirect underwriting of any such undertaking, but such term shall not include a person whose interest was limited
    to a commission from an underwriter or dealer not in excess of the usual and customary distributors’ or sellers’
    commission.
	 	 	 
	Amendment
    of Section at Company’s option based on amendment of Trust Indenture Act	 	If
    the Trust Indenture Act is amended at any time after the date of this Indenture to change the circumstances under which a
    Trustee shall be deemed to have a conflicting interest with respect to this Indenture or the bonds of any series or to change
    any of the definitions in connection therewith, this Section 19.12 may at the Company’s option be amended by an
    indenture supplemental hereto to incorporate such changes.

 

     

    	 	135	 

    

 

	§19.13	 	 
	 	 	 
	Section 19.13     (a) 
    The Trustee shall transmit within sixty (60) days after May 31 in each year, beginning with the year 1989, to the bondholders
    as hereinafter in this Section provided, a brief report dated as of such May 31 with respect to	 	Trustee
    to transmit certain reports to bondholders
	 	 	 
	(1) 
    its eligibility and its qualifications under Sections 9.03, 19.01 and 19.12 hereof, or in lieu thereof, if to the best of
    its knowledge the Trustee has continued to be eligible and qualified under such Sections, a written statement to such effect;	 	 
	 	 	 
	(2) 
    the character and amount of any advances (and if such Trustee elects so to state, the circumstances surrounding the making
    thereof) made by such Trustee as such which remain unpaid on the date of such report, and for the reimbursement of which such
    Trustee claims or may claim a lien or charge, prior to that of the bonds on the trust estate or on property or funds held
    or collected by it as Trustee, provided that such Trustee shall not be required (but may elect) to state such advances, if
    such advances so remaining unpaid aggregate not more than one-half of one per centum (1/2 of 1%) of
    the principal amount of the bonds Outstanding on the date of such report;	 	 
	 	 	 
	(3) 
    the amount, interest rate, and maturity date of all other indebtedness owing by the Company to such Trustee in its individual
    capacity on the date of such report, with a brief description of any property held as collateral security therefor, except
    an indebtedness based upon a creditor relationship arising in any manner described in paragraph (2), (3), (4) or (6) of
    subdivision (b) of Section 19.11 hereof;	 	 
	 	 	 
	(4) 
    the property and funds physically in the possession of such Trustee on the date of such report;	 	 
	 	 	 
	(5) 
    any release, or release and substitution, of property subject to the Lien of this Indenture (and the consideration therefor,
    if any) which has not been previously reported; provided, however, that to the extent that the aggregate value as shown by
    the release papers of any or all of such released properties does not exceed an amount equal to one per centum (1%) of the
    principal amount of bonds then Outstanding, the report need only indicate the number of such releases, the total value of
    property released as shown by the release papers, the aggregate amount of cash received and the aggregate value of property
    received in substitution therefor as shown by the release papers;	 	 

 

     

    	 	136	 

    

 

	 	 	(6) 
    any additional issue of bonds which has not been previously reported; and
	 	 	 
	 	 	(7) 
    any action taken by the Trustee in the performance of its duties under this Indenture which it has not previously reported
    and which in its opinion materially affects the bonds or the trust estate, except in respect of a Default, notice of which
    has not been or is to be withheld in accordance with the provisions of Section 15.02 hereof.
	 	 	 
	 	 	(b) 
    The Trustee shall transmit to the bondholders as hereinafter provided a brief report with respect to—
	 	 	 
	 	 	(1) 
    the release, or release and substitution, of property subject to the Lien of this Indenture (and the consideration therefor,
    if any) unless the fair value of such property, as set forth in the certificate or opinion required by Sections 9.05, 10.03,
    13.03, 13.04, 13.05, 13.06 or 13.07 hereof, is less than ten per centum (10%) of the principal amount of bonds Outstanding
    at the time of such release, or such release and substitution, such report to be so transmitted within ninety (90) days after
    such time; and
	 	 	 
	 	 	(2) 
    the character and amount of any advances (and if the Trustee elects so to state, the circumstances surrounding the making
    thereof) made by the Trustee as such since the date of the last report transmitted pursuant to the provisions of subdivision
    (a) of this Section (or if no such report has yet been so transmitted, since the date of execution of this Indenture),
    for the reimbursement of which it claims or may claim a lien or charge prior to that of the bonds on the trust estate or on
    property or funds held or collected by it as Trustee, and which it has not previously reported pursuant to this paragraph,
    provided that the Trustee shall not be required (but may elect) to state such advances, if such advances remaining unpaid
    at any time aggregate not more than ten per centum (10%) of the principal amount of bonds Outstanding at such time, such report
    to be transmitted within ninety (90) days after such time.
	 	 	 
	Reports to be	 	(c) 
    Reports pursuant to this Section shall be transmitted by mail—
	transmitted by mail	 	 
	 	 	(1) 
    to all registered holders of bonds, as the names and addresses of such holders appear upon the registration books of the Company;

 

     

    	 	137	 

    

 

	§§19.13, 19.14	 	 
	 	 	 
	(2) 
    to such holders of bonds as have, within two years preceding such transmission, filed their names and addresses with the Trustee
    for that purpose; and	 	 
	 	 	 
	(3) 
    except in the case of reports pursuant to subdivision (b) of this Section, to each bondholder whose name and address
    is preserved at the time by the Trustee, as provided in subdivision (b) of Section 9.10 hereof.	 	 
	 	 	 
	(d) 
    A copy of each such report shall, at the time of such transmission to bondholders, be filed by the Trustee with each stock
    exchange upon which the bonds are listed and also with the Securities and Exchange Commission. The Company will notify the
    Trustee of the name and address of each stock exchange on which the bonds are listed.	 	Filing
    with stock exchange and Securities and Exchange Commission
	 	 	 
	(e) 
    The provisions of this Section which have been made specifically applicable to the Trustee shall apply to the Trustee
    and, if a separate or co-trustee is appointed pursuant to Section 19.16 hereof, to any separate or co-trustee. Notwithstanding
    any of the provisions of this Section which require any separate or co-trustee, appointed pursuant to Section 19.16
    hereof, to transmit reports to the bondholders and to file such reports with each stock exchange upon which the bonds are
    listed and also with the Securities and Exchange Commission, such separate or co-trustee may, if he, she or it so elects,
    furnish to the Trustee all information concerning such separate or co-trustee which such separate or co-trustee is required
    to report, and the Trustee shall transmit and file such information, in accordance with the provisions of this Section, on
    behalf of such separate or co-trustee.	 	Application
    of Section to Trustee and separate or co-trustee
	 	 	 
	Section 19.14     The
    Trustee may at any time resign and be discharged of the trusts hereby created by giving written notice to the Company specifying
    the day upon which such resignation shall take effect and thereafter publishing notice thereof, in one Daily Newspaper
    of general circulation in the Borough of Manhattan, The City of New York, New York, and in one Daily Newspaper of general
    circulation in the City of Portland, Oregon, once, and such resignation shall take effect upon the day specified in such notice
    unless previously a successor trustee shall have been appointed by the bondholders or the Company in the manner hereinafter
    provided in Section 19.15 and in such event such resignation shall take effect immediately on the appointment of such
    successor trustee; provided, however, that if all bonds then Outstanding shall be registered, no notice need be given except
    by mail in accordance with	 	Resignation
    of Trustee

  

     

    	 	138	 

    

 

	 	 	§§19.14,
    19.15
	 	 	 
	 	 	subdivision
    (c) of Section 19.13 hereof. This Section shall not be applicable to resignations pursuant to Section 19.12
    hereof.
	 	 	 
	Removal
    of Trustee	 	Any
    Trustee may be removed at any time by an instrument or concurrent instruments in writing filed with such Trustee and signed
    and acknowledged by the holders of a majority in principal amount of the bonds then Outstanding hereunder (determined as provided
    in Section 15.07 hereof) or by their attorneys-in-fact duly authorized.
	 	 	 
	Resignation
    of Trustee upon ineligibility	 	In
    case at any time the Trustee shall cease to be eligible in accordance with the provisions of Section 9.03 or Section 19.01
    hereof, then the Trustee so ceasing to be eligible shall resign immediately in the manner and with the effect in this Section provided;
    and, in the event that it does not resign immediately in such case, then it may be removed forthwith by an instrument or concurrent
    instruments in writing filed with the Trustee so ceasing to be eligible and either (a) signed by an Authorized Executive
    Officer of the Company with its corporate seal attested by the Secretary or an Assistant Secretary of the Company or (b) signed
    and acknowledged by the holders of a majority in principal amount of the bonds then Outstanding hereunder (determined as provided
    in Section 15.07 hereof) or by their attorneys-in-fact duly authorized.
	 	 	 
	Appointment
    of successor trustee	 	Section 19.15     In
    case at any time the Trustee shall resign or shall be removed (unless such Trustee shall be removed as provided in subdivision
    (c) of Section 19.12 hereof in which event the vacancy shall be filled as provided in said subdivision) or shall
    become incapable of acting, or shall be adjudged a bankrupt or insolvent, or if a receiver of the Trustee or of its property
    shall be appointed, or if any public officer shall take charge or control of the Trustee, or of its property or affairs for
    the purpose of rehabilitation, conservation or liquidation, a vacancy shall be deemed to exist in the office of the Trustee,
    and a successor or successors may be appointed by the holders of a majority in principal amount of the bonds then Outstanding
    hereunder (determined as provided in Section 15.07 hereof) by an instrument or concurrent instruments in writing signed
    and acknowledged by such bondholders or by their attorneys-in-fact duly authorized, and delivered to such new Trustee, notification
    thereof being given to the Company and the retiring Trustee; provided, nevertheless, that until a new Trustee shall be appointed
    by the bondholders as aforesaid, the Company, by instrument executed by order of its Board of Directors and duly acknowledged
    by an Authorized Executive Officer of the Company, may appoint a Trustee

 

     

    	 	139	 

    

 

	§§19.15,
    19.16	 	 
	 	 	 
	to
    fill such vacancy until a new Trustee shall be appointed by the bondholders as herein authorized. The Company shall give notice
    of any such appointment made by it in the manner provided in Section 19.14 hereof. Any new Trustee appointed by the Company
    shall, immediately and without further act, be superseded by a Trustee appointed by the bondholders as above provided, if
    such appointment by the bondholders be made prior to the expiration of one year after the first giving of notice of the appointment
    of the new Trustee by the Company.	 	 
	 	 	 
	If
    in a proper case no appointment of a successor Trustee shall be made pursuant to the foregoing provisions of this Section within
    six months after a vacancy shall have occurred in the office of Trustee, the holder of any bond Outstanding hereunder or any
    retiring Trustee may apply to any court of competent jurisdiction to appoint a successor Trustee. Said court may thereupon
    after such notice, if any, as such court may deem proper and prescribe, appoint a successor Trustee.	 	Bondholder
    application for appointment of successor trustee
	 	 	 
	If
    any Trustee resigns because of a conflict of interest as provided in subdivision (a) of Section 19.12 hereof and
    a successor has not been appointed by the Company or the bondholders or, if appointed, has not accepted the appointment, within
    thirty (30) days after the date of such resignation, the resigning Trustee may apply to any court of competent jurisdiction
    for the appointment of a successor Trustee.	 	Application
    of resigned Trustee for appointment of successor
	 	 	 
	Any
    Trustee appointed under the provisions of this Section in succession to the Original Trustee (or in succession to any
    successor thereof) shall be a bank or trust company eligible under Sections 9.03 and 19.01 hereof and qualified under Section 19.12
    hereof.	 	Qualifications
    for successor trustee
	 	 	 
	Any
    Trustee which has resigned or been removed shall nevertheless retain the lien afforded to it by Section 19.09 hereof
    upon the trust estate, including all property or funds held or collected by such Trustee, as such, to secure the amounts due
    to such Trustee as compensation, reimbursement, expenses and indemnity, and shall retain the rights afforded to it by said
    Section 19.09 hereof.	 	Lien
    of resigned
 or removed Trustee
	 	 	 
	Section 19.16     At
    any time or times, for the purpose of conforming to any legal requirements, restrictions or conditions in any State or jurisdiction
    in which any part of the Mortgaged and Pledged Property then or to become subject to the Lien of this Indenture may be located,
    the Company and the Trustee shall have the power to appoint, and, upon the request of the Trustee, the Company shall for such
    purpose join with	 	Appointment
    of separate trustee or co-trustee

 

     

    	 	140	 

    

 

	 	 	§19.16
	 	 	 
	 	 	the
    Trustee in the execution, delivery and performance of all instruments and agreements necessary or proper to appoint, another
    corporation or one or more persons approved by the Trustee, either to act as separate trustee or trustees, or co-trustee or
    co-trustees jointly with the Trustee, of all or any of the property subject to the Lien hereof. In the event that the Company
    shall not have joined in such appointment within fifteen (15) days after the receipt by it of a request so to do, the Trustee
    alone shall have power to make such appointment.
	 	 	 
	Conditions:	 	Every
    separate trustee, every co-trustee and every successor trustee, other than any trustee which may be appointed as successor
    to the Original Trustee, shall, to the extent permitted by law, but to such extent only, be appointed subject to the following
    provisions and conditions, namely:
	 	 	 
	(1)
    Exercise of powers	 	(1) 
    The rights, powers, duties and obligations conferred or imposed upon trustees hereunder or any of them shall be conferred
    or imposed upon and exercised or performed by the Trustee and such separate trustee or separate trustees or co-trustee or
    co-trustees jointly, as shall be provided in the instruments and agreements appointing such separate trustee or separate trustees
    or co-trustee or co-trustees, except to the extent that under any law of any jurisdiction in which any particular act or acts
    are to be performed the Trustee shall be incompetent or unqualified to perform such act or acts, in which event such rights,
    powers, duties and obligations shall be exercised and performed by such separate trustee or separate trustees or co-trustee
    or co-trustees;
	 	 	 
	(2)
       Authentication, etc. of bonds	 	(2) 
    The bonds secured hereby shall be authenticated and delivered, and all powers, duties, obligations and rights, conferred upon
    the Trustee in respect of the custody of all bonds and other securities and of all cash pledged or deposited hereunder, shall
    be exercised solely by the Original Trustee or its successors in the trust hereunder; and
	 	 	 
	(3)
       Resignation or removal of separate trustee or co-trustee	 	(3) 
    The Company and the Trustee, at any time by an instrument in writing executed by them jointly, may accept the resignation
    of or remove any separate trustee or co-trustee appointed under this Section or otherwise, and, upon the request of the
    Trustee, the Company shall, for such purpose, join with the Trustee and in the execution, delivery and performance of all
    instruments and agreements necessary or proper to make effective such resignation or

 

     

    	 	141	 

    

 

	§§19.16,
    19.17	 	 
	 	 	 
	removal.
    In the event that the Company shall not have joined in such action within fifteen (15) days after the receipt by it of a request
    so to do, the Trustee alone shall have power to accept such resignation or to remove any such separate trustee or co-trustee.
    A successor to a separate trustee or co-trustee so resigned or removed may be appointed in the manner provided in this Section.	 	 
	 	 	 
	No
    trustee hereunder shall be personally liable by reason of any act or omission of any other trustee hereunder.	 	 
	 	 	 
	Any
    notice, request or other writing, by or on behalf of the holders of the bonds delivered to the Original Trustee, or its successor
    in the trust hereunder, shall be deemed to have been delivered to all of the then trustees or co-trustees as effectually as
    if delivered to each of them. Every instrument appointing any trustee or trustees other than a successor to the Original Trustee
    shall refer to this Indenture and the conditions in this Article expressed, and upon the acceptance in writing by such
    trustee or trustees or co-trustee or co-trustees, he, she, they or it shall be vested with the estates or property specified
    in such instrument, either jointly with the Original Trustee, or its successor, or separately, as may be provided therein,
    subject to all the trusts, conditions and provisions of this Indenture; and every such instrument shall be filed with the
    Original Trustee or its successor in the trust hereunder. At the written direction of the Company or the Trustee, any separate
    trustee or trustees, or any co-trustee or co-trustees, shall by an instrument in writing constitute the Original Trustee or
    its successor in the trust hereunder his, her, their or its agent or attorney-in-fact, with full power and authority, to the
    extent which may be permitted by law, to do any and all acts and things and exercise any and all discretion authorized or
    permitted by him, her, them or it, for and in behalf of him, her, them or it, and in his, her, their or its name. In case
    any separate trustee or trustees or co-trustee or co-trustees, or a successor to any of them, shall die, become incapable
    of acting, resign or be removed, all the estates, property, rights, powers, trusts, duties and obligations of said separate
    trustee or co-trustee, so far as permitted by law, shall vest in and be exercised by the Original Trustee or its successor
    in the trust hereunder, without the appointment of a new trustee as successor to such separate trustee or co-trustee.	 	Notice
                                         by bondholders to Trustee, notice to
 all trustees

                                                       

                                                      Contents,
                                         filing, etc., of instrument appointing trustee

                                                       

                                                       

                                                       

                                                       

                                                      Appointment
                                         of
 agent, etc. by separate trustee or co-trustee

                                                       

                                                       

                                                       

                                                       

                                                      Incapacity, etc.
                                         of separate trustee or con-trustee

	 	 	 
	Section 19.17     Any
    successor trustee appointed hereunder shall execute, acknowledge and deliver to his, her or its predecessor trustee,	 	Acceptance
    of successor trustee

 

     

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	 	 	§§19.17, 19.18
	 	 	 
	Requirements of Predecessor upon retiring	 	and also to the Company,
    an instrument accepting such appointment hereunder, and thereupon such successor trustee, without any further act, deed or
    conveyance, shall become fully vested with all the estates, properties, rights, powers, trusts, duties and obligations of
    his, her or its predecessor in trust hereunder, with like effect as if originally named as trustee herein; but the trustee
    ceasing to act shall nevertheless, on the written request of the Company, or of the successor trustee, or of the holders of
    ten per centum (10%) in principal amount of the bonds then Outstanding hereunder, execute, acknowledge and deliver such instruments
    of conveyance and further assurance and do such other things as may reasonably be required for more fully and certainly vesting
    and confirming in such successor trustee all the right, title and interest of the trustee to which he, she or it succeeds,
    in and to the Mortgaged and Pledged Property and such rights, powers, trusts, duties and obligations, and the trustee ceasing
    to act shall also, upon like request, pay over, assign and deliver to the successor trustee any money or other property subject
    to the Lien of this Indenture, including any pledged securities which may then be in his, her or its possession. Should any
    deed, conveyance or instrument in writing from the Company be required by the new trustee for more fully and certainly vesting
    in and confirming to such new trustee such estates, properties, rights, powers, trusts and duties, any and all such deeds,
    conveyances and instruments in writing shall, on request, be executed, acknowledged and delivered by the Company.
	 	 	 
	Merger or consolidation of Trustee

         

         

         

         

         

         

         

         

        Issuance of bonds authenticated by predecessor trustee
	 	Section 19.18     Any
    corporation into which the Trustee may be merged or converted, or with which it may be consolidated, or any corporation resulting
    from any merger, conversion or consolidation in which the Trustee shall be a party or any corporation to which substantially
    all the corporate trust business of the Trustee may be transferred, provided such corporation shall be eligible under the
    provisions of Sections 9.03 and 19.01 hereof and qualified under Section 19.12 hereof, shall be the successor trustee
    under this Indenture, without the execution or filing of any paper or the performance of any further act on the part of any
    other parties hereto, anything herein to the contrary notwithstanding. In case any of the bonds contemplated to be issued
    hereunder shall have been authenticated but not delivered, any such successor to the Trustee may, subject to the same terms
    and conditions as though such successor had itself authenticated such bonds, adopt the certificate of authentication of the
    Original Trustee or of any successor

 

     

    	 	143	 

    

 

	§§19.18,
    19.19, 19.20	 	 
	 	 	 
	to it, as trustee hereunder,
    and deliver said bonds so authenticated; and in case any of said bonds shall not have been authenticated, any successor to
    the Trustee may authenticate such bonds either in the name of any predecessor hereunder or in the name of the successor trustee,
    and in all such cases such certificate shall have the full force which it is anywhere in said bonds or in this Indenture provided
    that the certificate of the Trustee shall have; provided, however, that the right to authenticate bonds in the name of the
    Original Trustee shall apply only to its successor or successors by merger, conversion or consolidation or sale as aforesaid.	 	Further authentication by successor
	 	 	 
	Section 19.19     Notwithstanding
    any other provisions hereof, the Company, by instrument executed by order of its Board of Directors and duly acknowledged
    by its proper officers, may, within the period beginning January 1, 1999 and ending December 31, 1999, and the comparable
    period in each succeeding decade, appoint any corporation eligible under the provisions of Section 19.15 hereof, and
    doing business in the United States of America, as Trustee in succession to the Trustee as of the date of such appointment
    and the corporation so appointed Trustee shall thereupon become successor Trustee hereunder until a new Trustee shall be appointed
    by the bondholders as authorized herein.	 	Appointment of successor Trustee
	 	 	 
	Section 19.20     The
    Trustee may, from time to time, appoint an authenticating agent or agents to act on its behalf and subject to its direction
    in connection with the authentication of bonds of any series as fully to all intents and purposes as though such authenticating
    agent had been expressly authorized in this Indenture to authenticate bonds; and such bonds so authenticated shall be entitled
    to the benefits of this Indenture and shall be valid and obligatory for all purposes as though authenticated by the Trustee
    hereunder. For all purposes the authentication of bonds by an authenticating agent pursuant to this Indenture shall be deemed
    to be the authentication of such bonds “by the Trustee” and whenever this Indenture provides that “the Trustee
    shall authenticate” bonds such authentication by an authenticating agent hereunder shall be deemed to be authentication
    by the Trustee.	 	Appointment of authenticating agent
	 	 	 
	Any
    such authenticating agent shall be a bank or trust company and a corporation organized and doing business under the laws of
    the United States or of any State or Territory or of the District of Columbia, with a combined capital and surplus of at least
    Five Million Dollars ($5,000,000),	 	 

 

     

    	 	144	 

    

 

	 	 	§19.20
	 	 	 
	 	 	and be authorized under
    such laws to act as an authenticating agent and duly registered to act as such, if and to the extent required by applicable
    laws and regulations, and be subject to supervision or examination by Federal, State, Territorial, or District of Columbia
    authority. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of
    the aforesaid supervising or examining authority, then for the purposes of this Section 19.20 the combined capital and
    surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report
    of condition so published. If at any time an authenticating agent hereunder shall cease to be eligible in accordance with
    the provisions hereof or to be duly registered to the extent required by applicable laws and regulations, it shall resign
    immediately in the manner and with the effect herein specified.
	 	 	 
	 	 	Any
    corporation into which any authenticating agent may be merged or converted or with which it may be consolidated, or any corporation
    resulting from any merger, conversion or consolidation to which any authenticating agent shall be a party, or any corporation
    succeeding to the authenticating agency business of any authenticating agent, shall be the successor of the authenticating
    agent hereunder, if otherwise eligible under the provisions hereof, and continue to be an authenticating agent without the
    execution or filing of any paper or any further act on the part of the Trustee or the predecessor authenticating agent.
	 	 	 
	 	 	Any
    authenticating agent may at any time resign by giving written notice of resignation to the Trustee and to the Company. The
    Trustee may at any time terminate the agency of any authenticating agent by giving written notice of termination to such authenticating
    agent and to the Company. Upon receiving such a notice of resignation or upon such a termination, or in case at any time any
    authenticating agent shall cease to be eligible hereunder or to be duly registered to the extent required by applicable laws
    and regulations, the Trustee may appoint a successor authenticating agent. Any successor authenticating agent upon acceptance
    of its appointment hereunder shall become vested with all the rights, powers, duties and responsibilities of its predecessor
    hereunder, with like effect as if originally named as an authenticating agent pursuant to the terms hereof. No successor authenticating
    agent shall be appointed unless eligible under the provisions hereof.
	 	 	 
	 	 	The
    Company agrees to pay to any authenticating agent from time to time reasonable compensation for its services, and the Trustee
    shall have no liability for such payments. The Trustee shall not be responsible

 

     

    	 	145	 

    

 

	§19.20;
    Art. XX, §20.01	 	 
	 	 	 
	for any misconduct,
    bad faith or negligence on the part of any authenticating agent appointed with due care by it hereunder.	 	 
	 	 	 
	Any
    authenticating agent by the acceptance of its appointment shall be deemed to have agreed with and warranted to the Trustee
    that: it will perform and carry out the duties of an authenticating agent as herein set forth, including among other things
    the duties to authenticate bonds when presented to it; it will keep and maintain and will furnish from time to time as requested
    by the Trustee appropriate records of all transactions carried out by it as authenticating agent and will furnish the Trustee
    such other information and reports as the Trustee may reasonably require; it is eligible for appointment as authenticating
    agent hereunder and will notify the Trustee promptly if it shall cease to be so qualified; and it will indemnify the Trustee
    against any loss, liability or expense incurred by the Trustee and will defend any claim asserted against the Trustee by reason
    of any acts or failures to act of the authenticating agent, but it shall have no liability for any action taken by it at the
    specific direction of the Trustee.	 	 
	 	 	 
	The
    provisions of Sections 16.01, 16.02, 19.02, 19.03, 19.04, 19.09 and 22.07 of this Indenture shall bind and inure to the benefit
    of each authenticating agent hereunder to the same extent that they bind and inure to the benefit of the Trustee.	 	 
	 	 	 
	Article XX
    

Discharge of Mortgage	 	 
	 	 	 
	Section 20.01     The
    Trustee (and any separate trustee or trustees or co-trustee or co-trustees appointed pursuant to the provisions of this Indenture)
    may, and upon request of the Company shall, cancel and discharge the Lien hereof, and execute and deliver to the Company such
    deeds and instruments as shall be requisite to satisfy the Lien hereof and reconvey and transfer to the Company the Mortgaged
    and Pledged Property, whenever all indebtedness secured hereby, including all proper charges of the Trustee hereunder, shall
    have been paid or shall have been duly provided for as set forth in Section 20.02 hereof.	 	Discharge of the Lien hereof
	 	 	 
	Notwithstanding
    the satisfaction and discharge of this Indenture, the Trustee shall have an unsecured right to charge and be reimbursed for
    any expenditures and liabilities (incurred in good faith and without negligence by the Trustee) which it may thereafter incur.	 	Trustee’s unsecured right to reimbursement

 

     

    	 	146	 

    

 

	 	 	§20.02
	 	 	 
	Bonds for payment of which money or obligations
    of the United States are deposited are deemed paid; provisos	 	Section 20.02     The
    Company may provide for the payment or redemption of Outstanding bonds and interest thereon by depositing with the Trustee
    either (i) moneys in the necessary amount or (ii) obligations of the United States of America which shall not contain
    provisions permitting the redemption thereof at the option of the issuer, the principal of and the interest on which when
    due, and without any regard to reinvestment thereof, will, in the opinion of an independent accountant or other independent
    financial expert delivered to the Trustee, provide moneys which, together with the moneys, if any, deposited with or held
    by the Trustee, shall be sufficient to pay when due the principal of, premium (if any) and interest due and to become due
    on such bonds or portions thereof on the redemption date or maturity date thereof, as the case may be. When such sufficient
    moneys and/or obligations shall have been set apart by or deposited with the Trustee, with irrevocable direction so to apply
    the same, subject to the provisions of Section 22.03 hereof (with or without any additional right given to the holders
    to surrender their bonds or obtain therefrom payment therefor prior to the redemption date) such bonds and interest thereon
    shall for all purposes under this Indenture including satisfying the Lien of this Indenture be deemed to have been paid; provided
    that in case of redemption the notice requisite to the validity of such redemption shall have been given or arrangements shall
    have been made insuring to the satisfaction of the Trustee that the same will be given; and provided further that the Trustee
    need not accept such deposit unless it is accompanied by an Opinion of Counsel to the effect that (a) the Company has
    received from, or there has been published by, the Internal Revenue Service a ruling, or (b) since the date of this Indenture
    there has been a change in applicable federal income tax law, in either case to the effect that, and based thereon such Opinion
    of Counsel shall confirm that, the holders of such bonds or the right of payment of interest thereon (as the case may be)
    will not recognize income, gain or loss for federal income tax purposes as a result of such deposit and/or the ensuing discharge
    of this Indenture and will be subject to federal income tax on the same amount and in the same manner and at the same times,
    as would have been the case if such deposit, and/or discharge had not occurred. Upon such deposit, the obligation of the Company
    to duly and punctually pay or cause to be paid the principal of (and premium, if any) and interest on such bonds shall cease,
    terminate and be completely discharged and the holders thereof shall thereafter be entitled to receive payment solely from
    the funds deposited with the Trustee as set forth above.

 

     

    	 	147	 

    

 

	§20.03;
    Art. XXI, §§21.01, 21.02	 	 
	 	 	 
	Section 20.03     In
    the event that the Opinion of Counsel delivered in accordance with Section 20.02 hereof states in effect that such income
    tax liability to the bondholders would arise from discharge of this Indenture but not from the deposit of such moneys and/or
    obligations without an ensuing discharge, then in such case this Indenture shall not be discharged until such Outstanding
    bonds and interest thereon have (subject to the provisions of Section 22.03 hereof) been actually paid (or the unqualified
    Opinion of Counsel contemplated by Section 20.02 hereof can be delivered); provided however that thereafter the Company
    shall be relieved of its obligations to comply with the covenants of Article IX hereof.	 	Tax liability arising from discharge; when Indenture
    discharged
	 	 	 
	Article XXI

    Meetings and Consents of Bondholders	 	 
	 	 	 
	Section 21.01     Modifications
    and alterations of this Indenture and/or of any indenture supplemental hereto and/or of the rights and obligations of the
    Company and/or of the rights of the holders of bonds and coupons issued hereunder may be made as provided in this Article XXI.	 	Modification of Indenture
	 	 	 
	Section 21.02     The
    Trustee may at any time call a meeting of the bondholders and it shall call such a meeting on written request of the holders
    of not less than a majority in principal amount of the bonds Outstanding hereunder at the time of such request. The Company,
    pursuant to a Resolution, may also call a meeting of the bondholders at any time. In each such case the purpose or purposes
    of such meeting shall be set forth in reasonable detail. In the event of the Trustee’s failing for thirty (30) days
    to call a meeting after being thereunto requested by the bondholders as above set forth, holders of Outstanding bonds in the
    amount above specified in this Section or the Company, pursuant to a Resolution, may call such meeting. Every such meeting
    called by and at the instance of the Trustee shall be held in the City of Portland, Oregon, or the Borough of Manhattan, The’
    City of New York, New York, or with the written approval of the Company, at any other place in the United States of America,
    and notice thereof, stating the place and time thereof and in general terms the business to be submitted, shall be mailed
    by the Trustee not less than thirty (30) days before such meeting (a) to all holders of bonds the names and addresses
    of whom are then preserved as	 	Call and notice of meeting

         

         

         

         

         

         

        Place, when called by Trustee

         

         

         

        Mailing, publication requirements

 

     

    	 	148	 

    

 

	 	 	§§21.02,
    21.03
	 	 	 
	Place, when called by Company or bondholders

         

        When notice not required

         
	 	required by Section 9.10
    hereof, and (b) to the Company addressed to it at the address given in Section 22.08 of this Indenture (or at such
    other address as may be designated by the Company from time to time), and, unless all bonds Outstanding hereunder are at the
    time registered as to principal, shall be published by the Trustee once preceding the meeting, in a Daily Newspaper of general
    circulation in the Borough of Manhattan, The City of New York, New York, the publication to be not less than twenty (20) days
    prior to the date of such meeting; provided, however, that the mailing of such notice to any bondholders shall in no case
    be a condition precedent to the validity of any action taken at such meeting, and provided further, however, that if all bonds
    then Outstanding shall be registered, no notice need be given except by mail in accordance with subdivision (c) of Section 19.13
    hereof. If such meeting is called by or at the instance either of the Company or of the bondholders, it shall be held at such
    place in the United States of America as may be specified in the notice calling such meeting and notice thereof shall be sufficient
    for all purposes hereof if given as aforesaid stating the place and time of the meeting and in general terms the business
    to be submitted. Any meeting of bondholders shall be valid without notice if the holders of all bonds then Outstanding hereunder
    are present in person or by proxy and if the Company and the Trustee are present by duly authorized representatives, or if
    notice is waived in writing before or after the meeting by the Company, the holders of all bonds Outstanding hereunder and
    by the Trustee, or by such of them as are not present in person or by proxy.
	 	 	 
	Attendance at meetings

         

         

         

         

         

         

         

         

         

        Trustee may make regulations as to deposits of bonds
	 	Section 21.03     Officers
    and nominees of the Trustee and of the Company or their or its nominees may attend such meeting, but shall not as such be
    entitled to vote thereat. Attendance by bondholders may be in person or by proxy and, unless specifically prohibited by law,
    any such proxy shall remain in effect unless specifically revoked and shall be binding on any future holder of the bonds represented
    by such proxy, unless specifically revoked by any such future holder before being voted. In order that the holder of any bond
    payable to bearer and his, her or its proxy may attend and vote without producing his, her or its bond, the Trustee, with
    respect to any such meeting, may make and from time to time vary such regulations as it shall think fit for deposit of bonds
    with, or the stamping of bonds by, (i) any banks, bankers or trust or insurance companies having a capital of not less
    than Five Hundred Thousand Dollars ($500,000) or (ii) any trustee of any pension, welfare, hospitalization or similar
    fund or funds having an aggregate corpus in excess of

 

     

    	 	149	 

    

 

	§§21.03	 	 
	 	 	 
	Five
    Million Dollars ($5,000,000), or (iii) the United States of America, any Territory thereof, the District of Columbia,
    any State of the United States, any municipality in any State of the United States or any public instrumentality of the United
    States, any State or Territory, or (iv) by any other person or corporation satisfactory to the Trustee, and for the issue
    to the persons depositing the same of certificates by such depositaries entitling the holders thereof to be present and vote
    at any such meeting and to appoint proxies to represent them and vote for them at any such meeting as if the persons so present
    and voting, either personally or by proxy, were the actual bearers of the bonds in respect of which such certificates shall
    have been issued and any regulations so made shall be binding and effective. A bondholder in any of the foregoing categories
    may sign such certificate in his, her or its own behalf. In lieu of or in addition to providing for such deposit, the Trustee
    may, in its discretion, permit such institutions to issue certificates stating that bonds were exhibited to them, which certificates
    shall entitle the holders thereof to vote at any meeting only if the bonds with respect to which they are issued are not produced
    at the meeting by any other person and are not at the time of the meeting registered in the name of any other person. Each
    such certificate shall state the date on which the bond or bonds in respect of which such certificate shall have been issued
    were deposited with or submitted to such institution and the series, maturities and serial numbers of such bonds. In the event
    that two or more such certificates shall be issued with respect to any bond or bonds, the certificate bearing the latest date
    shall be recognized and be deemed to supersede any certificate or certificates previously issued with respect to such bond
    or bonds. If any such meeting shall have been called under the provisions of Section 21.02 hereof, by bondholders or
    by the Company, and the Trustee shall fail to make regulations as above authorized, then regulations to like effect for such
    deposit, stamping or exhibition of bonds and the issue of certificates by (i) any bank, banker or trust or insurance
    company organized under the laws of the United States of America or of any State thereof, having a capital of not less than
    Five Hundred Thousand Dollars ($500,000), or (ii) any trustee of any pension, welfare, hospitalization, or similar fund
    or funds having an aggregate corpus in excess of Five Million Dollars ($5,000,000), or (iii) by the United States of
    America, any Territory thereof, the District of Columbia, any State of the United States, any municipality in any State of
    the United States or any public instrumentality of the United States, any State or Territory	 	Certificate in lieu of production of unregistered
    bonds

 

     

    	 	150	 

    

 

	 	 	§§21.03,
    21.04, 21.05
	 	 	 
		 	shall be similarly
    binding and effective for all purposes hereof if adopted or approved by the bondholders calling such meeting or by the Board
    of Directors, if such meeting shall have been called by the Company, provided that in either such case copies of such regulations
    shall be filed with the Trustee. A bondholder in any of the foregoing categories may sign such a certificate in his, her or
    its own behalf.
	 	 	 
	Persons entitled to vote at meetings

         

         

        When production of bonds and further proof necessary

         

         

         

         

        Proxies

         
	 	Section 21.04     Subject
    to the restrictions specified in Sections 21.03 and 21.07 hereof, any registered holder of bonds Outstanding hereunder and
    any holder of a certificate (not superseded) provided for in Section 21.03 hereof, shall be entitled in person or by
    proxy to attend and vote at such meeting as holder of the bonds registered or certified in the name of such holder without
    producing such bonds. All others seeking to attend or vote at such meeting in person or by proxy must, if required by an authorized
    representative of the Trustee or the Company or by any other bondholder, produce the bearer bonds claimed to be owned or represented
    at such meeting, and everyone seeking to attend or vote shall, if required as aforesaid, produce such further proof of bond
    ownership or personal identity as shall be satisfactory to the authorized representative of the Trustee, or if none be present
    then to the Inspectors of Votes hereinafter provided for. Proxies shall be witnessed or in the alternative may (a) have
    the signature guaranteed by a bank or trust company or a registered dealer in securities, (b) be acknowledged before
    a Notary Public or other officer authorized to take acknowledgments, or (c) have their genuineness otherwise established
    to the satisfaction of the Inspectors of Votes. All proxies and certificates presented at any meeting shall be delivered to
    said Inspectors of Votes and filed with the Trustee.
	 	 	 
	Temporary Chairman and Secretary

         

         

         

        Permanent Chairman and Secretary

         

        Inspectors of Votes

         
	 	Section 21.05     Persons
    named by the Trustee, if it is represented at the meeting, shall act as temporary Chairman and Secretary, respectively, of
    the meeting, but if the Trustee shall not be represented or shall fail to nominate such persons or if any person so nominated
    shall not be present, the bondholders and proxies present shall by a majority vote, irrespective of the amount of their holdings,
    elect another person or other persons from those present to act as temporary Chairman and/or Secretary. A permanent Chairman
    and a permanent Secretary of such meeting shall be elected from those present by the bondholders and proxies present by a
    majority vote of bonds represented. The Trustee, if represented at the meeting, shall appoint two Inspectors of Votes who

 

     

    	 	151	 

    

 

	§§21.05,
    21.06	 	 
	 	 	 
	shall
    decide as to the right of anyone to vote and shall count all votes cast at such meeting, except votes on the election of a
    Chairman and Secretary, both temporary and permanent, as aforesaid and who shall make and file with the permanent Secretary
    of the meeting their verified written report in duplicate of all such votes so cast at said meeting. If the Trustee shall
    not be represented at the meeting or shall fail to nominate such Inspectors of Votes or if either Inspector of Votes fails
    to attend the meeting, the vacancy shall be filled by appointment by the permanent Chairman of the meeting.	 	 
	 	 	 
	Section 21.06     The
    holders of:	 	Quorum
	 	 	 
	(a) 
        not less than sixty per centum (60%) in principal amount of the bonds Outstanding hereunder when such meeting is held,
        all voting as a single class, or

         

        (b) 
        if the action proposed at said meeting solely adversely affects the rights of the holders of one or more, but less than
        all, series of bonds then Outstanding, then at least sixty per centum (60%) in principal amount of those bonds then Outstanding
        so to be adversely affected, all voting as a single class,
	 	 
	 	 	 
	(excluding
    in any case bonds disqualified from voting by reason of the Company’s interest therein) must be present at such meeting
    in person or by proxy in order to constitute a quorum for the transaction of business, less than a quorum, however, having
    power to adjourn; provided, however, that if such meeting is adjourned by less than a quorum for more than thirty (30) days,
    notice thereof shall be given as soon as practicable by the Trustee if such meeting shall have been called by the Trustee
    (a) to the Company addressed to it at the address given in Section 22.08 hereof (or at such other address as may
    be designated by the Company in writing from time to time), and (b) to all holders of bonds then Outstanding hereunder,
    the names and addresses of whom are then preserved by the Trustee as required by the provisions of Section 9.10 hereof,
    and, unless all bonds Outstanding hereunder are at the time of such mailing registered as to principal, shall be published
    at least once in each thirty (30) day period of such adjournment in a Daily Newspaper of general circulation in the Borough
    of Manhattan, The City of New York, New York, provided, however, that if all bonds then Outstanding shall be registered, no
    notice need be given except by mail in accordance with subdivision (c) of Section 19.13 hereof. Notwithstanding
    the foregoing, if a meeting is first adjourned by less than a quorum for less	 	Notice of adjournment

 

     

    	 	152	 

    

 

	 	 	§§21.06,
    21.07
	 	 	 
	 	 	than thirty (30) days
    and is again adjourned, no such notice need be given during the period of the first adjournment but such notice shall be given
    as soon as practicable by the Trustee after the second adjournment and any subsequent adjournments. The failure to mail such
    notice to any such bondholder as aforesaid shall in no case affect the validity of any action taken at any meeting held pursuant
    to such adjournment. If such meeting shall have been called, under the provisions of Section 21.02 hereof, by bondholders
    or by the Company, notice of such adjournment shall be given by the permanent Chairman and permanent Secretary of the meeting
    as above specified in this Section and shall be sufficient if so given.
	 	 	 
	Vote necessary for modification or alteration, etc., of
        Indenture

         

         

         

         

         

         

        Limitations
	 	Section 21.07     Subject
    to the provisions of Section 15.16 hereof, any modification or alteration of this Indenture (including any indenture
    supplemental hereto) and/or of the rights and obligations of the Company and/or the rights of the holders of bonds and/or
    coupons issued hereunder in any particular may be made at a meeting of bondholders duly convened and held in accordance with
    the provisions of this Article, but only by resolution duly adopted by the affirmative vote of the holders of sixty per centum
    (60%) or more in principal amount of the bonds Outstanding hereunder, all voting as a single class, or, if the rights of one
    or more, but less than all, series of bonds then Outstanding are to be adversely affected by action taken at such meeting,
    then by affirmative vote of the holders of at least sixty per centum (60%) in principal amount of those bonds so to be adversely
    affected and Outstanding hereunder, all voting as a single class, when such meeting is held, and in every case approved by
    a Resolution as specified in Section 21.08 hereof; provided, however, that no such modification or alteration shall,
    without the consent of the holder of any bond issued hereunder affected thereby, (A) (1) impair or affect the right
    of such holder to receive payment of the principal of (and premium, if any) and interest on such bond, on or after the respective
    due dates expressed in such bond, or to institute suit for the enforcement of any such payment on or after such respective
    dates, or (2) permit the creation of any lien ranking prior to, or on a parity with, the Lien of this Indenture with
    respect to any of the Mortgaged and Pledged Property, or (3) permit the deprivation of any nonassenting bondholder of
    the benefit of a lien upon the Mortgaged and Pledged Property for the security of his, her or its bonds (subject only to the
    lien of taxes, assessments or governmental charges not then delinquent and to any mortgage or other liens existing
    upon such property which are prior

 

     

    	 	153	 

    

 

	§§21.07,
    21.08	 	 
	 	 	 
	hereto
    at the date of the calling of any such bondholders’ meeting), or (4) permit the reduction of the percentage required
    by the provisions of this Section for the taking of any action under this Section with respect to any bond Outstanding
    hereunder or (B) impair or affect the right to receive payment of interest on such bond on or after the respective due
    dates expressed therein, without the consent of the holder of the right to such interest.	 	 
	 	 	 
	Except
    for the purpose of waiving any past Default of the Company and the consequences thereof, in which event the provisions of
    Section 15.07 hereof shall be applicable, bonds owned and/or held by and/or for account of and/or for the benefit or
    interest of the Company, or any corporation of which the Company shall own twenty-five per centum (25%) or more of the outstanding
    voting stock, shall not be deemed Outstanding for the purpose of any vote or of any calculation of bonds Outstanding in this
    Article XXI provided for, except that, subject to the provisions of Sections 19.01 and 19.02 hereof, for the purpose
    of determining whether the Trustee shall be protected in relying on any such vote or calculation, only bonds which the Trustee
    knows are so owned and/or held, shall be so excluded.	 	Bonds owned, held by, or for account of Company
    not deemed outstanding
	 	 	 
	Section 21.08     A
    record in duplicate of the proceedings of each meeting of bondholders shall be prepared by the permanent Secretary of the
    meeting and shall have attached thereto the original reports of the Inspectors of Votes, and affidavits by one or more persons
    having knowledge of the facts showing a copy of the notice of the meeting and a copy of the notice of adjournment thereof,
    if required under the provisions of Section 21.06 hereof, and showing that said notices were mailed and published as
    provided in Section 21.02 hereof and, in a proper case, as provided in Section 21.06 hereof. Such record shall be
    signed and verified by the affidavits of the permanent Chairman and the permanent Secretary of the meeting, and shall be delivered
    to the Company and to the Trustee. Any record so signed and verified shall be proof of the matters therein stated, and such
    meeting shall be deemed conclusively to have been duly convened and held and such record shall be conclusive, and any resolution
    or proceeding stated in such record to have been adopted or taken, shall be deemed conclusively to have been duly adopted
    or taken by such meeting. A true copy of any resolution adopted by such meeting shall be mailed by the Trustee to all holders
    of bonds Outstanding hereunder, the names and addresses of whom are then preserved by the Trustee pursuant to the provisions
    of Section 9.10	 	Record of meeting

         

         

         

         

         

         

         

        Conclusiveness of record

         

         

         

        Copy of resolution to be mailed to bondholders; proof
        of mailing; effect of failure to mail

 

     

    	 	154	 

    

 

	 	 	§§21.08,
    21.09
	 	 	 
	 

         

         

        Approval of resolution by Company

         

         

         

         

        When Company, Trustee and bond-holders bound

         
	 	hereof, and proof of
    such mailing by the affidavit of some person having knowledge of the fact shall be filed with the Trustee, but failure to
    mail copies of such resolution as aforesaid shall not affect the validity thereof. No such resolution shall be binding until
    and unless such resolution is approved by Resolution. It shall be the duty of the Company to file a copy of any such Resolution
    of approval with the Trustee, but if such Resolution is adopted and a certified copy thereof is filed with the Trustee, the
    resolution so adopted by such meeting shall (to the extent permitted by law) be deemed conclusively to be binding upon the
    Company, the Trustee and the holders of all bonds and coupons issued hereunder, at the expiration of sixty (60) days after
    such filing, except in the event of a final decree of a court of competent jurisdiction setting aside such resolution, or
    annulling the action taken thereby in a legal action or equitable proceeding for such purposes commenced within such sixty
    (60) day period; provided, however, that no such resolution of the bondholders, or Resolution, shall in any manner change
    or modify or be so construed as to change or modify any of the rights, immunities or obligations of the Trustee without its
    written assent thereto.
	 	 	 
	Notation of action taken may be made on bonds

         

         

        New bonds

         

         

         

         

         

         

        When supplemental instruments may be executed

         
	 	Section 21.09     Bonds
    authenticated and delivered after the date of any bondholders’ meeting may bear a notation in form approved by the Trustee
    as to the action taken at meetings of bondholders theretofore held. If the Company or the Trustee shall so determine, new
    bonds so modified as in the opinion of the Trustee and the Company to conform to such bondholders’ resolution shall
    be prepared, authenticated and delivered, and upon demand of the holder of any bond then Outstanding and affected thereby
    shall be exchanged without cost to such bondholders for bonds then Outstanding hereunder upon surrender of such bonds with
    all unmatured coupons, if any, appertaining thereto. The Company or the Trustee may require bonds Outstanding to be presented
    for notation or exchange as aforesaid if either shall see fit to do so. Instruments supplemental to this Indenture embodying
    any modification or alteration of this Indenture (including any indenture supplemental hereto) made at any bondholders’
    meeting and approved, by a Resolution, as aforesaid, may be executed by the Trustee and the Company and upon demand of the
    Trustee, or if so specified in any resolution adopted by any such bondholders’ meeting, shall be executed by the Company
    and the Trustee.

 

     

    	 	155	 

    

 

	§§21.09,
    21.10	 	 
	 	 	 
	Any
    instrument supplemental to this Indenture executed pursuant to the provisions of this Section shall comply with all applicable
    provisions of the Trust Indenture Act, as amended and in force on the date of the execution of such supplemental indenture.	 	 
	 	 	 
	Section 21.10     (A) Anything
    contained in this Article to the contrary notwithstanding, the Trustee shall receive the written consent (in any number
    of instruments of similar tenor executed by bondholders or by their attorneys appointed in writing) of the holders of sixty
    per centum (60%) or more in principal amount of the bonds Outstanding hereunder all voting as a single class (or if the rights
    of one or more, but less than all, series of bonds then Outstanding are to be adversely affected by action taken pursuant
    to such consent, then by consent of the holders of at least sixty per centum (60%) in principal amount of those bonds so to
    be adversely affected and Outstanding hereunder all voting as a single class) (in all cases, at the time the last such needed
    consent is delivered to the Trustee) in lieu of the holding of a meeting pursuant to this Article and in lieu of all
    action at such a meeting and with the same force and effect as a resolution duly adopted in accordance with the provisions
    of Section 21.07 hereof.	 	Written consent of bondholders in lieu of meeting

         

	 	 	 
	(B)  Such
        instruments of consent shall have their genuineness established to the satisfaction of the Trustee.

         

        The amount of
        bonds payable to bearer, and the series and serial numbers thereof, held by a person executing an instrument of consent
        (or whose attorney has executed an instrument of consent in his, her or its behalf), and the date of his, her or its holding
        the same, may be proved either by exhibiting the bonds themselves to the Trustee or by a certificate executed by any person
        or corporation satisfactory to the Trustee. A bondholder in any of the foregoing categories may sign a certificate in
        his, her or its own behalf.

         

        Each such certificate
        shall be dated and shall state in effect that as of the date thereof, a coupon bond or bonds bearing a specified serial
        number or numbers was deposited with or exhibited to the signer of such certificate. The holding by the person named in
        any such certificate of any bond specified therein shall be presumed to continue unless (1) any certificate bearing
        a later date issued in respect of the same bond shall be produced, (2) the bond specified in such certificate (or
        any bond or bonds issued in exchange or substitution for such bond) shall be produced by
	 	Genuineness of con-sent to be established

 

     

    	 	156	 

    

 

	 	 	§21.10;
    Art. XXII, §22.01
	 	 	 
	 	 	another holder, or
    (3) the bond specified in such certificate shall be registered as to principal in the name of another holder or shall
    have been surrendered in exchange for a fully registered bond registered in the name of another holder. The Trustee may, in
    its discretion, require further proof in cases where it deems further proof desirable. The ownership of registered bonds shall
    be proved by the registry books.
	 	 	 
	Revocation of consent	 	(C) 
    Until such time as the Trustee shall receive the written consent of the necessary per centum in principal amount of the bonds
    required by the provisions of subsection (A) above for action contemplated by such consent, any holder of any bond, the
    serial number of which is shown by the evidence to be included in the bonds the holders of which have consented to such action,
    may, by filing written notice with the Trustee at its corporate trust office and upon proof of holding as provided in subsection
    (B) above, revoke such consent so far as it concerns such bond. Except as aforesaid, any such consent shall be conclusive
    and binding upon such holder and upon all future holders of such bond (and any bond issued in lieu thereof or exchanged therefor),
    irrespective of whether or not any notation of such consent is made upon such bond, and in any event any action taken by the
    holders of the percentage in aggregate principal amount of the bonds specified in subsection (A) above in connection
    with such action shall, subject to the provisions of the last sentence of Section 21.08 hereof, be conclusively binding
    upon the Company, the Trustee and holders of all the bonds.
	 	 	 
	 	 	Article XXII

    Miscellaneous
	 	 	 
	Limitation of rights under Indenture	 	Section 22.01     Nothing
    in this Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm
    or corporation, other than the parties hereto and the holders of the bonds and coupons Outstanding hereunder, any right, remedy,
    or claim under or by reason of this Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all
    the covenants, conditions, stipulations, promises and agreements in this Indenture contained by and on behalf of the Company
    shall be for the sole and exclusive benefit of the parties hereto, and of the holders of the bonds and of the coupons Outstanding
    hereunder.

 

     

    	 	157	 

    

 

	§§22.02	 	 
	 	 	 
	Section 22.02     Any
    money which is held by the Trustee (other than money which is held by it for the purpose of effecting the purchase, payment
    or redemption of any bonds issued hereunder or the payment of any coupons or interest claims appertaining to bonds issued
    hereunder or which it has been directed to apply to any such purchase, payment or redemption which may only be invested in
    any bonds or other obligations of the United States of America designated by the Company) shall, at the request of the Company,
    evidenced by an Officers’ Certificate, be invested or reinvested by the Trustee in any Investment Securities designated
    by the Company, and, unless the Company is in default in the payment of interest on any of the bonds then Outstanding hereunder
    or one or more Defaults shall have occurred and be continuing, any interest on such bonds or other obligations which may be
    received by the Trustee shall be forthwith paid to the Company. Such bonds or other obligations shall be held by the Trustee
    as a part of the Mortgaged and Pledged Property and subject to the same provisions hereof as the cash used to purchase the
    same, but upon a like request of the Company, the Trustee shall sell all or any designated part of the same and the proceeds
    of such sale shall be held by the Trustee subject to the same provisions hereof as the cash used by it to purchase the bonds
    or other obligations so sold. If such sale shall produce a net sum less than the cost of the bonds or other obligations so
    sold, the Company covenants that it will pay promptly to the Trustee such amount of cash as with the net proceeds from such
    sale will equal the costs of the bonds or other obligations so sold, and if such sale shall produce a net sum greater than
    the costs of the bonds or other obligations so sold, the Trustee shall promptly pay to the Company an amount in cash equal
    to such excess.	 	Investment of cash by Trustee in certain securities

         

         

         

         

         

         

         

         

         

        Such securities held by Trustee as part of Mortgaged and
        Pledged Property

         

	 	 	 
	Unless
    the Company is in Default, any money in excess of the sum of Fifty Thousand Dollars ($50,000) which shall have been held by
    the Trustee for a period of five years, invested or uninvested (other than money which is held by it for the purpose of effecting
    the purchase, payment or redemption of any bonds issued hereunder or the payment of any coupons or interest claims appertaining
    to bonds issued hereunder or which it has been directed to apply to any such purchase, payment or redemption), shall be applied
    by the Trustee to the redemption of bonds to the extent any bonds then Outstanding are, by their terms, redeemable, selected
    as provided in Section 12.02 hereof from the bonds of those series then redeemable, designated by the Company. Any moneys
    not so applied	 	Disposition of certain cash in excess of $50,000
    held over five years

 

     

    	 	158	 

    

 

	 	 	§§22.02,
    22.03, 22.04
	 	 	 
	 	 	to redemption of bonds
    shall be held, applied or withdrawn in accordance with the other provisions of this Indenture. In the case of any such redemption,
    the Trustee shall have power to give any and all redemption notices for or on behalf of the Company.
	 	 	 
	Bonds or coupons not presented when due

         

         

         

         

        When Trustee to pay over to Company amount unclaimed

         

         
	 	Section 22.03     In
    the event that any bond issued hereunder shall not be presented for payment when the principal thereof becomes due, either
    at maturity or otherwise, or at the date fixed for the redemption thereof, or in the event that any coupon shall not be presented
    for payment at the due date thereof and the Company shall have deposited with the Trustee or any paying agent for the purpose
    or left with either of them if previously so deposited, money sufficient to pay the principal of such bond (and premium, if
    any), together with all interest due thereon to the date of the maturity of such bond or to the date fixed for the redemption
    thereof, or to pay such coupon, as the case may be, for the use and benefit of the holder thereof, the Trustee or such paying
    agent shall, in case the holder of any such bond or coupon shall not, within two years after the maturity of any such bond
    or coupon or the date fixed for the redemption of any such bond, claim the amount deposited as above stated for the payment
    thereof, pay over to the Company such amount so deposited, if to the knowledge of the Trustee the Company is not at the time
    in default hereunder; and the Trustee or such paying agent shall thereupon be relieved from all responsibility to the holder
    thereof, and in the event of such payment to the Company the holder of any such bond or coupon shall (subject to any applicable
    statute of limitations) be deemed to be an unsecured creditor of the Company for an amount equivalent to the amount deposited
    as above stated for the payment thereof and so paid over to the Company.
	 	 	 
	Rights may be waived or surrendered by Company

         

         

        Company may enter into further covenants for benefit of
        one or more series of bonds

         
	 	Section 22.04     Any
    power, privilege or right expressly or impliedly reserved to or in any way conferred upon the Company by any provision of
    this Indenture, whether such power, privilege or right is in any way restricted or is unrestricted, may be in whole or in
    part waived or surrendered or subjected to any restriction if at the time unrestricted or to additional restriction if already
    restricted, and the Company may enter into any further covenants, limitations, restrictions or provisions for the benefit
    of any one or more series of bonds issued hereunder and provide that a breach thereof shall be equivalent to a Default under
    this Indenture, or the Company may cure any ambiguity contained herein, or in any supplemental indenture, or may (in lieu
    of establishment in

 

     

    	 	159	 

    

 

	§§22.04,
    22.05	 	 
	 	 	 
	accordance
    with Section 2.03 hereof) establish the forms, terms and provisions of any series of bonds other than the First Series,
    by an instrument in writing executed by the Company. Alternative provisions relating to redemption of a particular series
    may be provided for in the relevant supplemental indenture, in lieu of the provisions of Article XII hereof. The Trustee
    is hereby authorized to join with the Company in the execution of any such instrument or instruments. Such instrument shall
    be delivered to the Trustee and thereupon any modification of the provisions of these presents therein set forth, authorized
    by this Section, shall be binding upon the parties hereto, their successors and assigns, and the holders of the bonds and
    coupons hereby secured. Anything herein contained to the contrary notwithstanding, this Section 22.04 shall not be construed
    to permit any act, waiver, surrender or restriction adversely affecting in any material respect any bonds then Outstanding
    hereunder or imposing upon the Trustee any duty or obligation that it reasonably deems to be unduly burdensome.	 	 

         

         

         

        Trustee may join with Company in execution of instruments

	 	 	 
	Section 22.05     Each
    certificate or opinion which is specifically required by the provisions of this Indenture to be delivered to the Trustee with
    respect to compliance with a condition or covenant herein contained shall include (1) a statement that the person making
    such certificate or opinion has read such covenant or condition; (2) a brief statement as to the nature and scope of
    the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;
    (3) a statement that, in the opinion of such person, he or she has made such examination or investigation as is necessary
    to enable him or her to express an informed opinion as to whether or not such covenant or condition has been complied with;
    and (4) a statement as to whether or not in the opinion of such person such condition or covenant has been complied with.	 	Formal requirements of certificates or opinions
	 	 	 
	Every
    request or application by the Company for action by the Trustee shall be accompanied by an Officers’ Certificate and
    an Opinion of Counsel stating in each case that in the opinion of the person making such certificate or opinion the conditions
    precedent, if any, to such action, provided for in this Indenture (including any covenants compliance with which constitutes
    a condition precedent), have been complied with.	 	Requirements for request for action by Trustee

 

     

    	 	160	 

    

 

	 	 	§§22.05,
    22.06, 22.07, 22.08
	 	 	 
	Successors and assigns	 	The
    same officer or officers of the Company, or the same engineer or cousel or other person, as the case may be, need not certify
    to all the matters required to be certified under the provisions of any Article, Section, subsection, subdivision, paragraph
    or clause hereof, but different officers, engineers, counsel or other persons may certify to different facts respectively.
	 	 	 
	Payment of court costs and attorney’s fees
    in certain suits	 	Section 22.06     All
    parties to this Indenture agree, and each holder or owner of any bond by his, her or its acceptance thereof shall be deemed
    to have agreed, that any court may in its discretion require in any suit for the enforcement of any right or remedy under
    this Indenture, or in any suit against the Trustee for any action suffered, taken or omitted by it as Trustee, the filing
    by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion
    assess reasonable costs, including reasonable attorney’s fees (including attorney’s fees for trial, any appeal
    and any petition for review), against any party litigant in such suit, having due regard to the merits and good faith of the
    claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted
    by the Trustee, to any suit instituted by any bondholder, or group of bondholders, holding in the aggregate more than ten
    per centum (10%) in principal amount of the bonds Outstanding (determined as provided in Section 15.07 hereof), or to
    any suit instituted by any bondholder for the enforcement of the payment of the principal of or interest on any bond, on or
    after the respective due dates expressed in such bond.
	 	 	 
	Successors and assigns	 	Section 22.07     Subject
    to the provisions of Article XVIII and Article XIX hereof, whenever in this Indenture any of the parties hereto
    is named or referred to (except in subdivision (1) of Section 1.05 hereof) this shall be deemed to include the successors
    or assigns of such party, and all the covenants and agreements in this Indenture contained by or on behalf of the Company
    or by or on behalf of the Trustee shall bind and inure to the benefit of the respective successors and assigns of such parties
    whether so expressed or not.
	 	 	 
	Company’s and Trustee’s mailing addresses	 	Section 22.08     For
    purposes of all notices to be given to the parties hereunder, and until further changed by notice in writing, the Company’s
    mailing address is 851 SW Sixth Avenue, Portland, Oregon 97204; and the Trustee’s mailing address is 30 West Broadway,
    New York, New York 10015, attention: Corporate Trust Department.

 

     

    	 	161	 

    

 

	§§22.09,
    22.10, 22.11, 22.12	 	 
	 	 	 
	Section 22.09     If
    any provision of this Indenture limits, qualifies, or conflicts with another provision of this Indenture which has been required
    to be included pursuant to any requirements of Sections 310 to 317, inclusive, of the Trust Indenture Act, such required provision
    shall control.	 	Trust Indenture Act to control
	 	 	 
	Section 22.10     Wherever
    reference is made in this Indenture to the Trust Indenture Act (except as may be evident by the context in Section 8.01
    hereof and except in Section 21.09 hereof), reference is made to such Act as it was in force on the date of the execution
    of this Indenture.	 	Trust Indenture Act as in force when Indenture
    executed
	 	 	 
	Section 22.11     The
    titles of the several Articles of this Indenture, the marginal Section and marginal Article references and the table
    of contents shall not be deemed to be any part hereof.	 	Titles of Articles,  etc., not part of Indenture
	 	 	 
	Section 22.12     This
    Indenture may be executed in several counterparts, each of which shall be an original and all of which shall constitute but
    one and the same instrument.	 	Execution in counterparts

 

     

    	 	162	 

    

 

 

	Testimonium	 	In Witness Whereof, Pacificorp, an Oregon corporation, has caused its corporate name to be hereunto affixed, and this instrument to be signed and sealed by an Authorized Executive Officer of the Company, and its corporate seal to be attested by its Secretary or one of its Assistant Secretaries for and in its behalf, and Morgan Guaranty Trust Company of New York, in token of its acceptance of the trust hereby created, has caused its corporate name to be hereunto affixed, and this instrument to be signed and sealed by one of its Vice Presidents and its corporate seal to be attested by one of its Assistant Secretaries, all as of the day and year first above written.
	 	 	 
	Signatures and seals	 	 	 	 PacifiCorp
	 	 	 	 	 
	 	 	 	 	 By:      Robert F. Lanz
	 	 	 	 	 Title:   Vice President
	 	 	 [Corporate Seal]	 	 
	 	 	 	 	 
	 	 	 Attest:	 	 
	 	 	 	 	 
	 	 	 John
M.  Schweitzer	 	 
	 	 	 Assistant Secretary	 	 
	 	 	 	 	 Morgan Guaranty Trust

         Company of New York

	 	 	 	 	 
	 	 	 	 	 By:  R. E. Sparrow
	 	 	 	 	 Title:  Vice President
	 	 	 [Corporate Seal]	 	 
	 	 	 	 	 
	 	 	 Attest:	 	 
	 	 	 	 	 
	 	 	 W. A. Spooner	 	 
	 	 	 Assistant Secretary	 	 

 

     

    	 	163	 

    

 

	State of Oregon	 	ss.:	 	 
	County of Multnomah	 	 

 

	
        On this ninth day
        of January, 1989, before me, Leonard W. Surry, a Notary Public in and for the State
        of Oregon, personally appeared Robert F. Lanz and John
        M. Schweitzer, known to me to be a Vice President and an Assistant Secretary, respectively, of PacifiCorp, an Oregon corporation,
        who being duly sworn, stated that the seal affixed to the foregoing instrument is the corporate seal of said corporation, and acknowledged
        this instrument to be the free, voluntary and in all respects duly and properly authorized act and deed of said corporation.

         

        In
        Witness Whereof, I have hereunto set my hand and official seal the day and year first above written.
	 	 

 

	 	Leonard W. Surry	 	 
	 	
        My Commission expires:  October 27,
        1989

        Residing at:  Gresham,
        Oregon
	 	 

[SEAL] 

	State
    of New York	 	ss.:	 	 
	County of New York	 	 

 

	
        On this fourth day
        of January, 1989, before me, Stephen D. Ryan, III, a Notary Public in and for
        the State of New York, personally appeared R. E. Sparrow and W.
        A. Spooner, known to me to be a Vice President and an Assistant Secretary, respectively, of Morgan Guaranty Trust Company
        of New York, a New York trust company, who being duly sworn, stated that the seal affixed to the foregoing instrument is the corporate
        seal of said company and acknowledged this instrument to be the free, voluntary and in all respects duly and properly authorized
        act and deed of said company.

         

        In
        Witness Whereof, I have hereunto set my hand and official seal the day and year first above written.
	 	 

 

	 	Stephen D. Ryan, III	 	 
	 	Stephen D.  Ryan, III

Notary Public, State of New York 

No.  31-4700229 

Qualified in New York County 

Commission expires January 31, 1990 

Residing at Pound Ridge, New York	 	 
	[SEAL]	 	 	 

 

     

    	 	164	 

    

 

	 	 	EXHIBIT X	Exhibits
	 	 	 	 
	 	 	(1) 
        To amend Section 37 of the Pacific Mortgage to read as follows:

         

        Section 37.     (I) 
        The Company hereby covenants that it will keep or cause to be kept all the property subject to the Lien hereof insured
        against fire, to the extent that property of similar character is usually so insured by companies similarly situated and
        operating like properties, to a reasonable amount, by reputable insurance companies, any loss, except as to materials
        and supplies and except as to any particular loss less than the greater of Four Million Dollars ($4,000,000) or two per
        centum (2%) of the bonds Outstanding hereunder on the date of such particular loss, to be made payable to the Trustee
        as the interest of the Trustee may appear, or to the trustee or other holder of any mortgage or other lien constituting
        a Qualified Lien or any other lien prior hereto upon property subject to the Lien hereof, if the terms thereof require
        losses so to be made payable or that it will, in lieu of or supplementing such insurance in whole or in part, adopt some
        other method or plan of protection against loss by fire at least equal in protection to the method or plan of protection
        against loss by fire of companies similarly situated and operating properties subject to similar fire hazards or properties
        on which an equal primary fire insurance rate has been set by reputable insurance companies, and that if it shall adopt
        such other method or plan, it will, except as to materials and supplies and except as to any particular loss less than
        the greater of Four Million Dollars ($4,000,000) or two per centum (2%) of the bonds Outstanding hereunder on the date
        of such particular loss, pay to the Trustee on account of any loss sustained by reason of the destruction or damage of
        such property by fire, an amount of cash equal to such loss less any amounts otherwise paid to the Trustee, or to the
        trustee or other holder of any mortgage or other lien constituting a Qualified Lien or any other lien prior hereto upon
        property subject to the Lien hereof, if the terms thereof require losses so to be paid. Any amounts of cash so required
        to be paid by the Company pursuant to any such method or plan shall for the purposes of this Indenture be deemed to be
        proceeds of insurance. In case of the adoption of such other method or plan of protection, the Company shall also furnish
        to the Trustee a certificate of an actuary or other qualified person appointed by the Company with respect to the adequacy
        of such method or plan.
	 

 

     

    	 	165	 

    

 

	(II) 
        All moneys paid to the Trustee by the Company in accordance with this Section or received by the Trustee as proceeds
        of any insurance against loss by fire shall, subject to the requirements of any mortgage constituting a Qualified Lien
        or any other lien prior hereto upon property subject to the Lien hereof, be held by the Trustee and, subject as aforesaid,
        shall be paid by it to the Company to reimburse the Company for an equal amount expended or committed for expenditure
        in the rebuilding or renewal of the property destroyed or damaged, upon receipt by the Trustee of (1) an Officers’
        Certificate requesting such reimbursement, (2) an Engineer’s Certificate stating the amounts so expended or
        committed for expenditure and the nature of such rebuilding or renewal and the fair value to the Company of the property
        rebuilt or renewed or to be rebuilt or renewed and if

         

        (A) 
        within six months prior to the date of acquisition thereof by the Company, such property has been used or operated, by
        a person or persons other than the Company, in a business similar to that in which it has been or is to be used or operated
        by the Company, and

         

        (B) 
        the fair value to the Company of such property as set forth in such Engineer’s Certificate is not less than Twenty-five
        Thousand Dollars ($25,000) and not less than one per centum (1%) of the aggregate principal amount of the bonds at the
        time Outstanding under this Indenture,

         

        the
        Engineer making such certificate shall be an independent Engineer, and (3) an Opinion of Counsel that the property
        so rebuilt or renewed or to be rebuilt or renewed is or will be subject to the Lien hereof to the same extent as was the
        property so destroyed or damaged; provided, however, that to the extent that moneys paid by the Trustee to the Company
        for reimbursement, as aforesaid, shall represent the proceeds of property that was not Funded Property destroyed or damaged
        by fire, the property so rebuilt or renewed (for which reimbursement is so made), shall not be deemed to be Funded Property.

         

        (III) 
        Any such money not so applied within eighteen (18) months after its receipt by the Trustee, or in respect of which notice
        in writing of intention to apply the same to the work of rebuilding or renewal then in progress and uncompleted shall
        not have been given
	 	 

 

     

    	 	166	 

    

 

	 	 	to
        the Trustee by the Company within such eighteen (18) months, or which the Company shall at any time notify the Trustee
        is not to be so applied, shall thereafter be withdrawn, used or applied in the manner, to the extent and for the purposes
        and subject to the conditions provided in Section 61 hereof.

         

        (IV) 
        Anything in this Indenture to the contrary notwithstanding, the Company may have fire insurance policies with (a) a
        deductible provision in a dollar amount per occurrence not exceeding the greater of Five Million Dollars ($5,000,000)
        or three per centum (3%) of the bonds Outstanding hereunder on the date such policy goes into effect and/or (b) co-insurance
        or self insurance provisions with a dollar amount per occurrence not exceeding 30% of the loss proceeds otherwise payable;
        provided, however, the dollar amount described in clause (a) above may be exceeded to the extent such dollar amount
        per occurrence is below the deductible amount in effect as to fire insurance (x) on property of similar character
        insured by companies similarly situated and operating like property or (y) on property as to which an equal primary
        fire insurance rate has been set by reputable insurance companies.

         

        (2) 
        To eliminate the provisions of (and the references to) Section 39 of the Pacific Mortgage, as amended as stated in
        Section 1 of the Nineteenth Supplemental Indenture, and to eliminate the references to said Section 39 from
        clause (II) of Section 4 of the Pacific Mortgage, from clause (e) of Section 5 of the Pacific Mortgage,
        from Section 29 of the Pacific Mortgage, and to eliminate all other references to said Section 39 wherever they
        may appear in the Pacific Mortgage, as supplemented.

         

        (3) 
        To except from the Lien of the Pacific Mortgage all interest of the Company, as owner, lessee or otherwise, in the Wyodak
        Facility (as the same is defined herein) including, without limitation, any equipment, parts, improvements, substitutions,
        replacements or other property relating thereto.

 

     

    	 	167	 

    

 

	EXHIBIT Y

         

        (1) 
        To amend Section 37 of the Utah Mortgage to read as follows:

         

        Section 37.
        (I)  The Company hereby covenants that it will keep or cause to be kept all the property subject to the Lien hereof
        insured against fire, to the extent that property of similar character is usually so insured by companies similarly situated
        and operating like properties, to a reasonable amount, by reputable insurance companies, any loss, except as to materials
        and supplies and except as to any particular loss less than the greater of Four Million Dollars ($4,000,000) or two per
        centum (2%) of the bonds Outstanding hereunder on the date of such particular loss, to be made payable to the Trustee
        as the interest of the Trustee may appear, or to the trustee or other holder of any mortgage or other lien constituting
        a Qualified Lien or any other lien prior hereto upon property subject to the Lien hereof, if the terms thereof require
        losses so to be made payable or that it will, in lieu of or supplementing such insurance in whole or in part, adopt some
        other method or plan of protection against loss by fire at least equal in protection to the method or plan of protection
        against loss by fire of companies similarly situated and operating properties subject to similar fire hazards or properties
        on which an equal primary fire insurance rate has been set by reputable insurance companies, and that if it shall adopt
        such other method or plan, it will, except as to materials and supplies and except as to any particular loss less than
        the greater of Four Million Dollars ($4,000,000) or two per centum (2%) of the bonds Outstanding hereunder on the date
        of such particular loss, pay to the Trustee on account of any loss sustained by reason of the destruction or damage of
        such property by fire, an amount of cash equal to such loss less any amounts otherwise paid to the Trustee, or to the
        trustee or other holder of any mortgage or other lien constituting a Qualified Lien or any other lien prior hereto upon
        property subject to the Lien hereof, if the terms thereof require losses so to be paid. Any amounts of cash so required
        to be paid by the Company pursuant to any such method or plan shall for the purposes of this Indenture be deemed to be
        proceeds of insurance. In case of the adoption of such other method or plan of protection, the Company shall also furnish
        to the Trustee a certificate of an actuary or other qualified person appointed by the Company with respect to the adequacy
        of such method or plan.
	 	 

 

     

    	 	168	 

    

 

	 	 	(II) 
        All moneys paid to the Trustee by the Company in accordance with this Section or received by the Trustee as proceeds
        of any insurance against loss by fire shall, subject to the requirements of any mortgage constituting a Qualified Lien
        or any other lien prior hereto upon property subject to the Lien hereof, be held by the Trustee and, subject as aforesaid,
        shall be paid by it to the Company to reimburse the Company for an equal amount expended or committed for expenditure
        in the rebuilding or renewal of the property destroyed or damaged, upon receipt by the Trustee of (1) an Officers’
        Certificate requesting such reimbursement, (2) an Engineer’s Certificate stating the amounts so expended or
        committed for expenditure and the nature of such rebuilding or renewal and the fair value to the Company of the property
        rebuilt or renewed or to be rebuilt or renewed and if

         

        (A) 
        within six months prior to the date of acquisition thereof by the Company, such property has been used or operated, by
        a person or persons other than the Company, in a business similar to that in which it has been or is to be used or operated
        by the Company, and

         

        (B) 
        the fair value to the Company of such property as set forth in such Engineer’s Certificate is not less than Twenty-five
        Thousand Dollars ($25,000) and not less than one per centum (1%) of the aggregate principal amount of the bonds at the
        time Outstanding under this Indenture,

         

        the
        Engineer making such certificate shall be an independent Engineer, and (3) an Opinion of Counsel that the property
        so rebuilt or renewed or to be rebuilt or renewed is or will be subject to the Lien hereof to the same extent as was the
        property so destroyed or damaged; provided, however, that to the extent that moneys paid by the Trustee to the Company
        for reimbursement, as aforesaid, shall represent the proceeds of property that was not Funded Property destroyed or damaged
        by fire, the property so rebuilt or renewed (for which reimbursement is so made), shall not be deemed to be Funded Property.

         

        (III) 
        Any such money not so applied within eighteen (18) months after its receipt by the Trustee, or in respect of which notice
        in writing of intention to apply the same to the work of rebuilding or renewal then in progress and uncompleted shall
        not have been given

 

     

    	 	169	 

    

 

	to
        the Trustee by the Company within such eighteen (18) months, or which the Company shall at any time notify the Trustee
        is not to be so applied, shall thereafter be withdrawn, used or applied in the manner, to the extent and for the purposes
        and subject to the conditions provided in Section 71 hereof.

         

        (IV) 
        Anything in this Indenture to the contrary notwithstanding, the Company may have fire insurance policies with (a) a
        deductible provision in a dollar amount per occurrence not exceeding the greater of Five Million Dollars ($5,000,000)
        or three per centum (3%) of the bonds Outstanding hereunder on the date such policy goes into effect and/or (b) co-insurance
        or self insurance provisions with a dollar amount per occurrence not exceeding 30% of the loss proceeds otherwise payable;
        provided, however, the dollar amount described in clause (a) above may be exceeded to the extent such dollar amount
        per occurrence is below the deductible amount in effect as to fire insurance (x) on property of similar character
        insured by companies similarly situated and operating like property or (y) on property as to which an equal primary
        fire insurance rate has been set by reputable insurance companies.

         

        (2) 
        To eliminate the provisions of (and the references to) Section 39 of the Utah Mortgage, the amendment to said Section 39
        contained in Section 3 of the Twenty-second Supplemental Indenture, Section 4 of the Twenty-second Supplemental
        Indenture, as amended, and to eliminate the references to said Section 39 from clause (II) of Section 4
        of the Utah Mortgage, from clause (c) of Section 5 of the Utah Mortgage, from Section 29 of the Utah Mortgage,
        and to eliminate all other references to said Section 39 wherever they may appear in the Utah Mortgage, as supplemented.
	 	 

 

     

    	 	170	 

    

 

	 	 	EXHIBIT Z

         

        A
        tract of land in Klamath County, Oregon, more particularly described as follows:

         

        PARCEL
        1: Lots 71 through 92, inclusive, in Block 3, First Addition to Buena Vista, according to the official plat thereof
        on file in the records of Klamath County, and

         

        PARCEL
        2: Beginning at the southeast corner of Lot 92 in Block 3, First Addition to Buena Vista;

         

        thence
        South 14° 27¢ East
        along the westerly line of Front Street a distance of 496.7 feet to a point;

         

        thence
        continuing along the southwesterly line of Front Street South 58° 41¢
        East a distance of 63.4 feet to the most
        northerly corner of tract conveyed by Deed recorded at Volume 200, page 9, Deed at Records of Klamath County;

         

        thence
        South 31° 19¢ West
        to the shore line of Upper Klamath Lake;

         

        thence
        northwesterly along said shore line to the southwest corner of Lot 92, Block 3, First Addition to Buena Vista;

         

        thence
        North 75° 33¢ East
        along the southerly line of said Lot 92, a distance of 135 feet, more or less to the point of beginning.

         

        LESS
        AND EXCEPTING a parcel of land 25 feet x 35 feet heretofore conveyed to the City of Klamath Falls by Deed dated March 10,
        1961, recorded March 31, 1961 in Volume 328, page 277, Deed Records of Klamath County.Document

EXHIBIT 10.1

Certain identified confidential information contained in this document, marked by brackets, has been excluded from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

SECOND AMENDMENT TO EXCLUSIVE DISTRIBUTION AGREEMENT
This Second Amendment to the Exclusive Distribution Agreement (this “Second Amendment”) is made and entered into effective as of September 21, 2020 (the “Second Amendment Effective Date”), and is by and between Puregraft LLC, a Delaware Limited Liability Company having its primary office and place of business at 420 Steven Avenue, Suite 220, Solana Beach, CA 92075, its parent company Bimini Technologies, LLC, and any affiliate and/or subsidiaries thereto (together, “Puregraft”) and Establishment Labs S.A., a company organized under the laws of Costa Rica, having its primary office and place of business at Coyol Free Zone Building 25, Alajuela, Costa Rica (“Distributor”) (each a “Party” and collectively the “Parties”). 
RECITALS:
WHEREAS, Puregraft and Establishment Labs Holdings Inc. (“ELHI”), an affiliate of Distributor, entered into that certain Exclusive Distribution Agreement dated September 7, 2016 (the “Original Agreement”);
WHEREAS, Puregraft, ELHI and Distributor entered into that certain First Amendment to Exclusive Distribution Agreement dated August 9, 2019 (the “First Amendment” and together with the Original Agreement, the “Agreement”), pursuant to which (a) ELHI transferred and assigned to Distributor all of ELHI’s right, title and interest in and to the Agreement, (b) Distributor assumed and agreed to perform all of ELHI’s obligations, responsibilities, and duties under the Agreement, and (c) certain other terms of the Agreement were amended;
WHEREAS, Puregraft and Distributor have been in a dispute regarding each Party’s performance obligations under the Agreement for the supply and purchase of Products, and whether Puregraft properly terminated the Agreement (the “Disputed Performance Obligations”); 
WHEREAS, the Parties have agreed to amicably resolve and settle their dispute by reinstating and further amending the Agreement and releasing any claims either of them may have against the other in connection with the Disputed Performance Obligations, all pursuant to the terms and conditions of this Second Amendment;
NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt, adequacy, and sufficiency of which is hereby acknowledged, the parties agree as follows:
SECTION 1: DEFINITIONS
Capitalized terms herein used which are not herein defined shall have the respective meanings ascribed to them in the Agreement.  All references to the term “Agreement” in the Agreement and this Second Amendment shall be deemed to include the Agreement as amended by this Second Amendment.
SECTION 2: AMENDMENTS TO AGREEMENT
A.Term.  Notwithstanding Puregraft’s letter to Distributor dated April 28, 2020 indicating that the Agreement would automatically terminate as of 5:00 pm PT on May 4, 2020, and anything set forth in the Agreement to the contrary, including without limitation, Section 14 thereof, the Parties hereby agree to reinstate the Agreement and all of its terms and conditions except to the extent modified by this Second Amendment and that the Term shall expire on December 31, 2022 and may not be renewed or extended without the mutual written agreement of both Parties, which may be granted or withheld in each Party’s sole discretion.  Upon the expiration or early termination of the term of the Agreement, Distributor shall have no rights to market, sell or distribute Products. 
B.Non-Exclusive Basis.  Notwithstanding anything set forth in the Agreement to the contrary, including without limitation, Section 2 thereof, Distributor’s rights under the Agreement shall, as of the Second Amendment Effective Date be non-exclusive, except for the Exempted Countries (as defined below) in which Distributor’s exclusivity shall continue to apply subject to the terms of the Agreement (as modified by this Second Amendment).

EXHIBIT 10.1

Certain identified confidential information contained in this document, marked by brackets, has been excluded from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

C.Motiva Hybrid Bundle.  Notwithstanding anything set forth in the Agreement to the contrary, except as expressly set forth below, Distributor may not sell or otherwise distribute Products on a stand-alone basis.  Instead, all sales and/or distribution of Products by Distributor (and its sub-distributors) under the Agreement shall be limited to Products being bundled and used solely with Motiva® breast implants on a [COMMERCIALLY SENSITIVE INFORMATION REDACTED] basis (“Motiva Hybrid Bundle”); provided, however, the following exceptions shall apply: [COMMERCIALLY SENSITIVE INFORMATION REDACTED]
D.No Further Minimum Purchase Requirements.  Notwithstanding anything set forth in the Agreement to the contrary, including without limitation Section 3.2 and the Schedules thereof, there shall be no minimum Product purchase requirements on Distributor for the remainder of the Term and any and all prior unfulfilled minimum purchase requirements under the Agreement (including orders not placed by Distributor, orders that have not been fully delivered to Distributor, or amounts payable to Puregraft for orders, or portions thereof, not accepted by Distributor prior to the Second Amendment Effective Date) are hereby excused and forgiven and no further action shall be taken by either Party in relation thereto. The Parties do not intend for Distributor to purchase any additional Products during the remainder of the term of the Agreement; provided, however, in the event Distributor desires to purchase additional Products from Puregraft during the remainder of the term of the Agreement, the Parties will work in good faith for the purchase/supply of such additional Products pursuant to the terms of the Agreement.

E.Puregraft Repurchase of Inventory.  Puregraft agrees to repurchase from Distributor [COMMERCIALLY SENSITIVE INFORMATION REDACTED] of Puregraft 250 Products and [COMMERCIALLY SENSITIVE INFORMATION REDACTED] of Puregraft 850 Products (collectively the “Repurchased Products”), subject to the following:

1.Pricing: The re-purchase pricing for Puregraft 250 Products shall be [COMMERCIALLY SENSITIVE INFORMATION REDACTED].  The re-purchase pricing for Puregraft 850 Products shall be [COMMERCIALLY SENSITIVE INFORMATION REDACTED].  The foregoing prices shall be all-in and inclusive of taxes, tariffs, shipping, or other reasonable amounts.

2.Delivery: The Repurchased Products must be in their original, unopened and non-damaged packaging, and will be delivered, at Distributor’s sole cost and expense (DDP, Incoterms 2020), from Distributor’s Belgium-based warehouse to Puregraft’s distribution center in Germany (“Delivery”).  Distributor will ship the Repurchased Products no later than ten (10) business days after the Second Amendment Effective Date. 

3.Shelf-Life: Each Repurchased Product shall, upon Delivery to Puregraft, have at least twenty-four (24) months of remaining shelf-life. 

4.Inspection:  Puregraft may inspect any or all shipments of Repurchased Products within ten (10) business days of Puregraft’s receipt of each shipment (the “Inspection Period”) to confirm compliance with this Section 2.E., and Puregraft has the right to reject, via notification to Distributor within the Inspection Period, any or all of a shipment of Repurchased Products that fails to satisfy such requirements.  In the event Puregraft does not provide notification of rejection prior to the expiration of the Inspection Period, then the applicable Repurchased Products delivered to Puregraft shall be deemed accepted by Puregraft.  In the event Puregraft timely rejects any Repurchased Products pursuant to this Section 2.E.iv. (“Rejected Repurchased Products”), Distributor may, in its sole discretion, promptly replace the Rejected Repurchased Products with other Repurchased Products (which shall continue to be subject to the terms of the Section 2.E.).

5.Invoicing and Payment: Distributor will invoice Puregraft for the total repurchase price of the Repurchased Products pursuant to this Section 2.E in [COMMERCIALLY SENSITIVE INFORMATION REDACTED] equal installments.  Distributor will issue the first invoice upon 

EXHIBIT 10.1

Certain identified confidential information contained in this document, marked by brackets, has been excluded from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

Delivery and the remaining [COMMERCIALLY SENSITIVE INFORMATION REDACTED] invoices will be issued over the [COMMERCIALLY SENSITIVE INFORMATION REDACTED] consecutive calendar quarters following the Second Amendment Effective Date. Puregraft will pay each invoice for accepted Repurchased Products within thirty (30) calendar days of receipt of such invoice. 

The Parties acknowledge and agree that, commencing six (6) months after the Second Amendment Effective Date, Puregraft shall, at Distributor’s sole discretion, buy back up to an additional [COMMERCIALLY SENSITIVE INFORMATION REDACTED] units of Puregraft 250 Products and [COMMERCIALLY SENSITIVE INFORMATION REDACTED] units of Puregraft 850 Products from Distributor during the remainder of the Term in accordance with the applicable terms of this Section 2.E. Such additional repurchased Products shall be deemed Repurchased Products hereunder.

F.Reports and Audit Rights.  Within fifteen (15) business days following the end of each calendar quarter during the remaining Term, Distributor will provide to Puregraft, a report detailing its sales and other distribution activities under this Second Amendment.  Each such report shall solely (i) identify the Products sold/distributed during such calendar quarter, (ii) minimal, de-identified, general information about the Customer(s), and (iii) shall include the information Distributor reasonably believes necessary to verify Distributor’s compliance with the Motiva Hybrid Bundle requirements under Section 2.C. above.  The Parties acknowledge and agree that any and all such reports are the Confidential Information of Distributor. Without limiting the foregoing, during the remaining Term, and for a period of one (1) year thereafter (“Audit Period”), Distributor will keep and maintain accurate and detailed books and records reasonably necessary for a neutral, mutually agreed upon third party (the “Report Auditor”) to verify Distributor’s compliance with the requirements under this Second Amendment.  Puregraft will have the right, no more than once during any twelve (12) month period during the Audit Period, upon fifteen (15) business days’ prior written notice to Distributor, to use the Report Auditor to inspect and audit Distributor’s books and records during normal business hours and on agreed upon dates for the sole purpose of verifying Distributor’s compliance with the requirements under this Second Amendment.  The Report Auditor shall enter into confidentiality agreements with Distributor in a form reasonably suitable to Distributor.  Each audit engaged by Puregraft will be conducted at Puregraft’s expense; provided, however, if any audit reveals that Distributor has failed to comply with the requirements under this Second Amendment, in any material respect, Distributor will reimburse Puregraft for all reasonable costs and expenses incurred by Puregraft in connection with such audit(s).  Without limiting any of Puregraft’s rights or remedies under the Agreement or otherwise, Distributor shall promptly take all commercially reasonable actions to remedy any non-conformance or non-compliance revealed during an audit.
SECTION 3: RELEASE OF CLAIMS
A.Release of Claims.  Each Party, on behalf of itself and its affiliates, and its and its affiliates’ respective officers, directors, stockholders, members, employees, representatives, attorneys, agents, successors, heirs, and assigns (collectively, the “Releasors”), hereby fully and forever releases and discharges the other Party and its affiliates, and its and its affiliates’ respective officers, directors, stockholders, members, employees, representatives, attorneys, agents, successors, heirs, and assigns (collectively, the “Releasees”), from any and all claims, demands, actions, agreements, suits, causes of action, obligations, controversies, debts, costs, attorneys’ fees, expenses, damages, judgments, orders and liabilities of whatever kind or nature in law, equity or otherwise, past, present or future, known or unknown, suspected or unsuspected, concerning the Disputed Performance Obligations from the beginning of time until the Second Amendment Effective Date, arising out of or in connection with the Agreement (collectively, the “Claims”), except for any claims that cannot be waived by law or claims for enforcement of this release. 

B.Waiver of Other Claims.  The Parties acknowledge that there is a possibility that subsequent to the execution of this Second Amendment, a Party may discover facts or incur or suffer claims concerning the Disputed Performance Obligations that were unknown or unsuspected at the time this Second Amendment was executed, and which if known by such Party at that time may have materially affected such Party’s decision to agree to the 

EXHIBIT 10.1

Certain identified confidential information contained in this document, marked by brackets, has been excluded from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

release of Claims in this Second Amendment.  The Parties acknowledge and agree that by reason of this Second Amendment, and the releases contained in this Section 3, each Party (for itself and on behalf of the applicable Releasors) is assuming any risk of such unknown facts and such unknown and unsuspected claims.  Without limiting the generality of the foregoing, in giving the release under this Section 3, which includes claims which may be unknown to a Party at present, each Party acknowledges that it has read and understands Section 1542 of the California Civil Code which reads as follows: “A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.”   Each Party (for itself and on behalf of the applicable Releasors) hereby expressly waives and relinquishes all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to the release of any unknown or unsuspected claims concerning the Disputed Performance Obligations a Party may have against the other Party and such Party’s Releasees. 

C.Forbearance of Suit.  Each Party, on behalf of itself and the Releasors, agrees that each Party and its applicable Releasors will forever refrain and forbear from commencing, instituting or prosecuting any lawsuit, action or other proceeding of any kind whatsoever, by way of action, defense, set-off, cross-complaint or counterclaim, against such other Party and its applicable Releasees  based on, arising out of, or in connection with any Claim which is released and discharged pursuant to this Section 3.

D.No Assignment.  Each Party expressly warrants that the Claims or other rights which are released pursuant to this Section 3 have not been assigned, conveyed or in any manner whatsoever transferred, and will not in the future be transferred, conveyed, or transferred to any other person or entity.  If a Party breaches the foregoing warranty, such Party agrees to hold harmless and to indemnify the other Party and such other Party’s Releasees for any damages caused by such breach (including any attorneys’ fees and costs incurred as a result of the breach).

E.No Admission of Liability.  The release under this Section 3 is not, and shall not in any way be construed to be, an admission by either Party, or any of their former or current parent companies, successors, assigns, affiliates, subsidiaries, directors, officers, employees and agents, that any one of them has acted wrongfully in any manner and the settlement set forth herein shall not be construed by any person or in any court, agency or tribunal whatsoever as a present or past admission of liability.

F.Confidentiality.  The provisions of this Section 3 shall be held in strictest confidence by each Party and shall not be publicized or disclosed in any manner whatsoever; provided, however, that each Party may disclose the provisions of this Section 3 in confidence to its officers, directors, stockholders, members and employees having a need to know, attorneys, accountants, tax preparers, financial advisors, and investors (actual or potential), and each Party may also disclose the provisions of this Section 3 insofar as such disclosure may be necessary to enforce its terms or as otherwise required by law or regulation, including the rules or regulations of any tax authority, the United States Securities and Exchange Commission, or any other similar regulatory agencies in a country other than the United States or of any stock exchange or other securities trading institution. 

G.No Present Knowledge of Additional Claims.  Each Party represents and warrants to the other that, as of the Second Amendment Effective Date, to the best of such Party’s knowledge, it is not aware of any pending, suspected, or threatened claim against the other Party other than the released Claims.
SECTION 4: MISCELLANEOUS    
A.Governing Law.  This Second Amendment will be governed by and interpreted in accordance with the laws of the State of California, USA, without reference to its choice of laws rules.

B.Unenforceable Terms.  If any provision of this Second Amendment is held by a court of competent jurisdiction to be unenforceable, such provision will be deemed modified and will be interpreted to accomplish the 

EXHIBIT 10.1

Certain identified confidential information contained in this document, marked by brackets, has been excluded from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

objectives of such provision to the greatest extent possible under applicable law and the remaining provisions of this Second Amendment will continue in full force and effect.  

C.Entire Agreement. This Second Amendment and the terms hereof shall constitute the entire agreement between the parties hereto with respect to all of the matters herein and its execution has not been induced by, nor do any of the parties hereto rely upon or regard as material, any representations or writings whatsoever not incorporated herein and made a part hereof.  

D.No Other Amendments.  Except as herein set forth, the Agreement has not been modified and, as amended by this Second Amendment, remains of full force and effect.  To the extent there are any inconsistencies or ambiguities between the specific subject matter of this Second Amendment and the Agreement, the terms of this Second Amendment shall supersede the Agreement.

E.Headings.  Descriptive headings used herein are used for convenience only and shall not be deemed to affect the meaning or construction of any provisions hereof.

F.Waiver of Terms.  A waiver of any term or condition of this Second Amendment will not be deemed to be, and may not be construed as, a waiver of any other term or condition hereof.

G.Neutral Construction.  This Second Amendment will be construed neutrally, and will not be applied more strictly against one party than another.

H.Counterparts.  This Second Amendment may be executed in two (2) or more counterparts, each of which shall be deemed an original but all of which taken together shall constitute one and the same instrument.  Signatures to this Second Amendment transmitted by facsimile, email, portable document format (.pdf) or by any other electronic means intended to preserve the original graphic and pictorial appearance of this Second Amendment shall have the same effect as the physical delivery of the paper document bearing original signatures.

IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be executed by their duly authorized representatives as of the Second Amendment Effective Date.

									
	PUREGRAFT LLC		ESTABLISHMENT LABS S.A.

	/s/ Bradford A. Conlan		/s/ Juan José Chacón-Quirós

	Signature		Signature
	Bradford A. Conlan		Juan José Chacón-Quirós

	Name		Name
	CEO		CEO
	Title		Title

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