Document:

Exhibit 4.1

 

TEMPORARY CERTIFICATE—EXCHANGEABLE FOR DEFINITIVE ENGRAVED CERTIFICATE
WHEN READY FOR DELIVERY

 

COMMON STOCK

 

	
   

  	
  

  	
   

  
	
  NUMBER

  	
  SHARES

  
	
  T

  	
   

  
	
   

  	
  THIS CERTIFICATE IS TRANSFERABLE IN CANTON,
  MA, JERSEY CITY, NJ

  AND NEW YORK CITY, NY

  
	
   

  	
   

  
	
   

  	
   

  	
  SEE REVERSE FOR CERTAIN DEFINITIONS

  
	
  INCORPORATED UNDER THE LAWS

  	
  ITC HOLDINGS CORP.

  	
   

  
	
  OF THE STATE OF MICHIGAN

  	
   

  	
  CUSIP TO COME

  
	
   

  	
   

  	
   

  
	
  CERTIFICATE OF STOCK

  
	
   

  
	
  THIS
  CERTIFIES THAT

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  is the owner of

  
	
   

  
	
  FULLY
  PAID AND NON-ASSESSABLE SHARES OF THE COMMON STOCK, WITHOUT PAR VALUE, OF

  ITC HOLDINGS CORP.

  
	
   

  
	
  transferable on the books
  of the Corporation by the holder hereof in person or by duly authorized
  attorney upon surrender of this certificate properly endorsed. This
  certificate is not valid unless countersigned by the Transfer Agent and
  registered by the Registrar.

  
	
   

  
	
  WITNESS
  the facsimile seal of the Corporation and the facsimile signatures of its
  duly authorized officers.

  
	
   

  
	
   

  
	
  Dated:

  	
  

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/
  Daniel J. Osinksy

  	
  /s/ Joseph L. Welch

  
	
   

  	
   

  
	
   

  SECRETARY

  	
  PRESIDENT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COUNTERSIGNED AND
  REGISTERED:

  
	
   

  	
  EQUISERVE
  TRUST COMPANY, N.A.

  
	
   

  	
  TRANSFER AGENT

  AND REGISTRAR

  
	
   

  	
  BY:

  	
  /s/ Stephen Cesso

  	
   

  
	
   

  	
   

  
	
   

  	
  AUTHORIZED SIGNATURE

  
							

 

 

 

 

 

 

 

 

 

 

 

 

© SECURITY-COLUMBIAN   UNITED STATES BANKNOTE
CORPORATION

 

 

The Corporation will furnish without charge to each
stockholder who so requests a statement of the designations, preferences and
relative participating, optional or other special rights of each class of stock
or series thereof of the Corporation and the qualifications, limitations or
restrictions of such preferences and/or rights and the authority of the board
of directors to designate and prescribe the relative rights, preferences and
limitations of other series. Such request may be made to the Corporation or the
Transfer Agent.

 

The
following abbreviations, when used in the inscription on the face of this
certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

 

	
   

  	
  TEN COM

  	
  –

  	
  as tenants in common

  	
  UNIF GIFT MIN ACT–

  	
   

  	
  Custodian

  	
   

  
	
   

  	
  TEN ENT

  	
  –

  	
  as tenants by the entireties

  	
   

  	
  (Cust)

  	
   

  	
  (Minor)

  
	
   

  	
  JT TEN

  	
  –

  	
  as joint tenants with right of survivorship 

  	
  under Uniform Gifts to
  Minors

  
	
   

  	
   

  	
  and not as tenants in
  common

  	
  Act

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (State)

  	
   

  
	
   

  	
   

  	
   

  	
   

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

  
	
   

  
	
  For value received, the undersigned hereby
  sells, assigns and transfers unto

  
	
   

  
	
  PLEASE INSERT SOCIAL SECURITY OR OTHER

  IDENTIFYING NUMBER OF ASSIGNEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
  (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF
  ASSIGNEE)

  
	
   

  	
   

  	
   

  
	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
   

  	
   

  	
   

  
	
   

  
												

 

shares of the capital stock
represented by the within Certificate, and do hereby irrevocably constitute and
appoint                         
                                                                                                                                       Attorney
to transfer the said stock on the books of the within named Corporation with
full power of substitution in the premises.

 

	
  Dated

  	
   

  	
   

  

 

 

	
  SIGN HERE:

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST
  CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY
  PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.

  

 

 

	
  Signature(s) Guaranteed:

  
	
   

  
	
   

  	
   

  
	
  THE SIGNATURE(S) SHOULD BE
  GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS
  AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED
  SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15.

  	
   

  

 

The
corporation's Amended and Restated Articles of Incorporation, as the same may
be amended from time to time (the “Articles”), impose certain restrictions on
the transfer, beneficial ownership and voting of the shares of capital stock
represented by this certificate under certain circumstances if the holder or
“beneficial owner” (as defined in the Articles) of the shares represented
hereby (or, in the case of a transfer, by such holder's transferee) is a
“Market Participant” (as defined in the Articles) or member of a “group” (as
defined in the Articles) with a Market Participant. The Articles also permit
the corporation's board of directors to redeem the shares of capital stock
beneficially owned by a Market Participant or member of a group with a Market
Participant under certain circumstances. At no charge, any holder of any class
or series of capital stock of the corporation may receive a written statement
of the restrictions imposed by the Articles.Exhibit 10.8

 

FIRST AMENDMENT TO

MANAGEMENT STOCKHOLDERS’ AGREEMENT

 

THIS FIRST
AMENDMENT (the “Amendment”) dated as of [Date], to the Management
Stockholders’ Agreement dated as of the date set forth on the signature page
attached hereto among ITC Holdings Corp., a Michigan corporation (the “Company”)
and the person identified on the signature page attached hereto (the “Management
Stockholder”, and such agreement, the “Stockholder’s Agreement”), is
made effective as of the same day as the effective date of the Stockholder’s
Agreement.  This First Amendment to the
terms of the Stockholder’s Agreement is effected by the Company and the
Management Stockholder in accordance with the provisions of Section 18 of
the Stockholder’s Agreement.

 

Defined terms
not expressly defined in this Amendment shall have the same meanings as set
forth in the Stockholder’s Agreement. 
The restrictions on the effectiveness of the Stockholder’s Agreement
shall apply with equal force and effect to this Amendment.

 

W  I  T  N  E  S
S  E  T  H  :

 

WHEREAS, in
connection with the Management Stockholder’s employment with the Company and in
contemplation of the anticipated issuance and sale of shares of Common Stock in
a Public Offering, the Company has determined that it is advisable to agree to
amend the terms of the Stockholder’s Agreement solely as provided below.

 

NOW,
THEREFORE, The parties hereto hereby agree as follows:

 

Section 1.                                            Amendment
to Section 5 of the Stockholder’s Agreement.

 

1.1                                 Subsection 5(a)(ii).  Subsection 5(a)(ii) of the Stockholder’s
Agreement is hereby deleted in its entirety and replaced with the following:

 

“(ii)                            With
respect to the Options, receive from the Company, on one occasion, in exchange
for all of the exercisable Options then held by the applicable Management Stockholder
Entities, if any, a number of shares of Stock equal to the quotient of (x) the
product of (A) the excess, if any, of the Section 5 Repurchase Price over
the Option Exercise Price and (B) the number of Exercisable Option Shares, divided
by (y) the Section 5 Repurchase Price, which Options shall be
terminated in exchange for such payment (the “Net Settled Stock”).  In the event the foregoing Option Excess
Price is zero or a negative number, all outstanding exercisable Options shall
be automatically terminated without any payment in respect thereof.  In the event that the Management Stockholder
Entities do not exercise the foregoing rights, all exercisable but unexercised
Options shall terminate pursuant to the applicable terms of the Stock Option
Agreement.  All unexercisable Options
held by the applicable Management Stockholder Entities shall terminate without
payment immediately upon termination of employment.

 

 

(iii)                               For
30 days following the date that is six months after the receipt by the applicable
Management Stockholder Entities of the Net Settled Stock (the “Settled Stock
Put Period”) (which period may, for the avoidance of doubt, extend after
the expiration of the Put Period), sell to the Company, and the Company shall
be required to purchase, on one occasion, all such Net Settled Stock held by
the applicable Management Stockholder Entities, at a per share price equal to
the applicable Section 5 Repurchase Price (the right set forth herein, the
“Modified Option Put Right”).”

 

1.2                                 Subsection 5(b).  Subsection 5(b) of the Stockholder’s
Agreement is hereby deleted in its entirety and replaced it with the following:

 

“In the event
the applicable Management Stockholder Entities intend to exercise their rights
pursuant to Section 5(a), such Management Stockholder Entities shall send
written notice to the Company, (i) at any time during the Put Period, of their
intention to sell shares of Stock in exchange for the payment referred to in Section 5(a)(i)
and/or to exchange such Options for Net Settled Stock or (ii) at any time
during the Settled Stock Put Period, of their intention to sell the Net Settled
Stock in exchange for the payment referred to in Section 5(a)(iii)(the “Redemption
Notice”). The completion of the applicable purchases or exchanges shall
take place at the principal office of the Company on the tenth business day
after the giving of the applicable Redemption Notice.  The Section 5 Repurchase Price shall be
paid by delivery to the applicable Management Stockholder Entities of a
certified bank check or checks in the appropriate amount payable to the order
of each of the applicable Management Stockholder Entities (or by wire transfer
of immediately available funds, if the Management Stockholder Entities provide
to the Company wire transfer instructions) and the Net Settled Stock shall be
delivered to the applicable Management Stockholder Entities, both against
delivery of certificates or other instruments representing the Stock so
purchased and appropriate documents canceling the Options so terminated
appropriately endorsed or executed by the applicable Management Stockholder
Entities or any duly authorized representative.”

 

1.3                                 Subsection 5(c).  Subsection 5(c) of the Stockholder’s
Agreement is hereby amended by deleting the proviso contained therein in its
entirety and replacing it with the following:

 

“provided,
however, that (i) the number of shares of Stock subject to
repurchase under this Section 5(c) shall be that number of shares of Stock
as specified in the Redemption Notice and held by the applicable Management
Stockholder Entities at the time of delivery of the Redemption Notice in
accordance with Section 5(b) hereof.”

 

1.4                                 New
Section 5(e).  A new Section 5(e)
of the Stockholder’s Agreement is hereby added after Section 5(d) thereof,
which shall read as follows:

 

(e)                                  Stock Transfer Election. 
Notwithstanding anything in this Agreement to the contrary, upon the
occurrence of an event giving rise to the Management Stockholder Entities’
ability to exercise the Modified Option Put Right, the Management Stockholder
Entities may, in lieu of exercising the Modified Option Put Right, at any time
during the Put Period instead elect to (i) exercise the Options in the manner
set forth in Section 5(a)(ii) above and receive the Net Settled Stock and
(ii) sell or otherwise dispose of all or any portion of the Net

 

2

 

Settled Stock
other than to the Company pursuant to Section 5(a) (such election, the “Transfer
Election”).  The Management
Stockholder Entities may make such a Transfer Election by sending written
notice to the Company of their election to waive the ability to exercise the
Modified Option Put Right and of their intention to instead exercise the rights
provided in this Section 5(e).  Upon
receipt by the Company of the Transfer Election, the Company shall immediately
waive the restrictions on transfer that would otherwise be imposed on such
shares of Net Settled Stock pursuant to Section 3 of this Agreement,
solely with respect to such shares of Net Settled Stock; provided, however,
that the Management Stockholder Entities hereby acknowledge that the Company’s
waiver of such restrictions on transfer does not constitute a waiver of, among
other things, any of the requirements otherwise imposed on the Management
Stockholder’s Agreement with respect to the sale or other disposition of Stock
set forth in Section 2 of the Agreement or any of the Company’s rights
under Section 4 of this Agreement. 
For purposes of this Section 5(e), the transfer restrictions
referenced in the preceding sentence shall be deemed to have been waived by the
Company on the tenth business day following the giving of the Transfer
Election.

 

1.5                                 Section 7,
Definitions.

 

(a)                                  “Option
Excess Price”.  The definition of “Option
Excess Price” as set forth in Section 7 of the Stockholder’s Agreement is
hereby deleted in its entirety and replaced it with the following:

 

“Option Excess Price” shall
mean, with respect to any Option, the aggregate amount paid or payable by the
Company in respect of Exercisable Option Shares pursuant to the applicable
provision of Section 6.”

 

(b)                                 “Repurchase
Calculation Date”.  The definition of “Repurchase
Calculation Date” as set forth in Section 7 of the Stockholder’s Agreement
is hereby deleted in its entirety and replaced it with the following:

 

“Repurchase Calculation Date”
shall mean the last day of the month preceding the later of (i) the month in
which the event giving rise to the right to repurchase occurs and (ii) the
month in which the Repurchase Eligibility Date occurs; provided, however,
that for purposes of Section 5(a)(iii) of this Agreement, the “Repurchase
Calculation Date” that shall be used to calculate the Section 5 Repurchase
Price shall instead be the later of (i) the tenth business day following the
giving of the Redemption Notice referenced in Section 5(a)(ii) of this
Agreement and (ii) the last day of the month preceding the month in which the
Repurchase Eligibility Date occurs.”

 

Section 2.                                            Miscellaneous.

 

2.1                                 Continuing
Effect of the Stockholder’s Agreement. 
This Amendment shall be construed together with, and as a part of, the
Stockholder’s Agreement, but shall not constitute an Amendment of any provision
of the Stockholder’s Agreement not expressly referred to herein.  Except as expressly agreed to hereby, the
provisions of the Stockholder’s Agreement are and shall remain in full force
and effect.

 

3

 

2.2                                 Counterparts.  This Amendment may be executed in two or more
counterparts, and by different parties on separate counterparts each of which
shall be deemed an original, but all of which shall constitute one and the same
instrument.

 

2.3                                 Governing
Law.  This Amendment shall be
governed by and construed and enforced in accordance with the laws of the State
of Michigan consistent with the Stockholder’s Agreement.

 

*                                         *                                         *                                         *                                         *

 

IN WITNESS
WHEREOF, each of the undersigned has executed this Amendment or caused this
Amendment to be executed on its behalf as of the date first written above.

 

	
   

  	
  ITC HOLDINGS CORP.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   Name:

  	
   

  
	
   

  	
   

  	
   Title:

  	
   

  

 

4

 

[SIGNATURE PAGE TO FIRST
AMENDMENT TO MANAGEMENT STOCKHOLDER’S AGREEMENT]

 

 

	
   

  	
  MANAGEMENT STOCKHOLDER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [NAME]

  
	
   

  	
   

  
	
  Date of

  	
   

  
	
  Management Stockholder’s Agreement:

  	
   

  	
   

  

 

5

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