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  Exhibit 4.2    
    

Upon recording, return to:

Ms. Shawne M. Keenan

Sutherland Asbill & Brennan LLP

999 Peachtree Street, N.E.

Atlanta, Georgia 30309-3996  

PURSUANT TO §44-14-35.1 OF OFFICIAL CODE OF GEORGIA ANNOTATED, THIS
INSTRUMENT EMBRACES, COVERS AND CONVEYS SECURITY TITLE TO AFTER-ACQUIRED PROPERTY OF THE GRANTOR

  

OGLETHORPE
POWER CORPORATION

(AN ELECTRIC MEMBERSHIP CORPORATION),

GRANTOR, 

to 

U.S.
BANK NATIONAL ASSOCIATION,

TRUSTEE 

SIXTY-THIRD SUPPLEMENTAL

INDENTURE  

Relating to the

Oglethorpe Power Corporation First Mortgage Bonds,

Series 2012 A 

Dated
as of November 1, 2012 

FIRST
MORTGAGE OBLIGATIONS 

 

NOTE TO THE CLERK OF THE SUPERIOR COURT AND TAX COMMISSIONER: BECAUSE THIS INSTRUMENT SECURES BONDS AND NOT A LONG TERM NOTE, THIS INSTRUMENT IS EXEMPT FROM THE INTANGIBLES
RECORDING TAX PURSUANT TO THE RULES AND REGULATIONS OF THE STATE OF GEORGIA §560-11-8-.14(d).  

 

        THIS SIXTY-THIRD SUPPLEMENTAL INDENTURE, dated as of November 1, 2012, is between OGLETHORPE POWER
CORPORATION (AN ELECTRIC MEMBERSHIP CORPORATION), formerly known as Oglethorpe Power Corporation (An Electric Membership Generation & Transmission Corporation), an
electric membership corporation organized and existing under the laws of the State of Georgia, as grantor (the "Company"), and U.S. BANK NATIONAL
ASSOCIATION, a national banking association, as successor to SunTrust Bank, formerly known as SunTrust Bank, Atlanta, as trustee (in such capacity, the "Trustee"). 

        WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture, dated as of March 1, 1997 (the "Original
Indenture"), for the purpose of securing its Existing Obligations and providing for the authentication and delivery of Additional Obligations by the Trustee from time to time under the Original
Indenture; 

        WHEREAS, the Company has heretofore executed and delivered to the Trustee sixty-two Supplemental Indentures (the Original
Indenture, as heretofore, hereby and hereafter supplemented and modified, the "Indenture"; capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to them in
the Original Indenture, as provided in Section 1.1 hereof), and the Original Indenture and the sixty-two Supplemental Indentures have been recorded as set forth on  Schedule 1; 

        WHEREAS, the Board of Directors of the Company has authorized a new series of Additional Obligations to be designated the First Mortgage
Bonds, Series 2012 A, due December 1, 2042 in the principal amount of Two Hundred and Fifty Million Dollars ($250,000,000) (the "Series 2012 A Bonds"); 

        WHEREAS, the Company has registered the Series 2012 A Bonds under the Securities Act of 1933, as amended (the "Securities Act"),
with the Securities and Exchange Commission (the "SEC"); 

        WHEREAS, the Company has complied or will comply with all provisions required to issue Additional Obligations provided for in the
Indenture; 

        WHEREAS, the Company desires to execute and deliver this Sixty-Third Supplemental Indenture, in accordance with the provisions of the
Indenture, for the purpose of providing for the creation and designation of the Series 2012 A Bonds as Additional Obligations and specifying the form and provisions thereof; 

        WHEREAS, Section 12.1 of the Original Indenture provides that, without the consent of the Holders of any of the Obligations at the
time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee may enter into Supplemental Indentures for the purposes and subject to the conditions set forth in said
Section 12.1, including (i) to create a series of Additional Obligations under the Indenture and to make provisions for such series of Additional Obligations and (ii) to convey
and confirm unto the Trustee any property subject or required to be subject to the lien of the Indenture; and 

        WHEREAS, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to secure under
the Indenture the payment of the principal of (and premium, if any) and interest on the Series 2012 A Bonds, to make the Series 2012 A Bonds to be issued hereunder, when executed by the
Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, and to constitute the Indenture a valid and binding lien for the security
of the Series 2012 A Bonds, in accordance with its terms, have been done and taken; and the execution and delivery of this Sixty-Third Supplemental Indenture have been in all respects duly
authorized by the Company. 

        NOW, THEREFORE, THIS SIXTY-THIRD SUPPLEMENTAL INDENTURE WITNESSES, that, to secure the payment of the principal of (and premium, if any)
and interest on the Outstanding Secured Obligations, including, when authenticated and delivered, the Series 2012 A Bonds, to confirm the lien of the Indenture upon the Trust Estate, including
property purchased, constructed or otherwise acquired by the Company since the date of execution of the Original Indenture, to secure performance 

 

of
the covenants therein and herein contained, to declare the terms and conditions on which the Series 2012 A Bonds are secured, and in consideration of the premises thereof and hereof, the
Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, and its successors and
assigns in the trust created thereby and hereby, in trust, all property, rights, privileges and franchises (other than Excepted Property or Excludable Property) of the Company, whether now owned or
hereafter acquired, of the character described in the Granting Clauses of the Original Indenture, wherever located, including all such property, rights, privileges and franchises acquired since the
date of execution of the Original Indenture, including, without limitation, all property described on Exhibit A attached hereto, subject to all
exceptions, reservations and matters of the character referred to in the Indenture, and does grant a security interest therein for the purposes expressed herein and in the Indenture subject in all
cases to Sections 5.2 and 11.2 B of the Original Indenture and to the rights of the Company under the Indenture, including the rights set forth in Article V thereof; but expressly
excepting and excluding from the lien and operation of the Indenture all properties of the character specifically excepted as "Excepted Property" or "Excludable Property" in the Original Indenture to
the extent contemplated thereby. 

        PROVIDED, HOWEVER, that if, upon the occurrence of an Event of Default, the Trustee, or any separate trustee or co-trustee
appointed under Section 9.14 of the Original Indenture or any receiver appointed pursuant to statutory provision or order of court, shall have entered into possession of all or substantially
all of the Trust Estate, all the Excepted Property described or referred to in Paragraphs A through H, inclusive, of "Excepted Property" in the Original Indenture then owned or thereafter
acquired by the Company, shall immediately, and, in the case of any Excepted Property described or referred to in Paragraphs I, J, L, N and P of "Excepted Property" in the Original Indenture
(excluding the property described in Section 2 of Exhibit B in the Original Indenture), upon demand of the Trustee or such other trustee
or receiver, become subject to the lien of the Indenture to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the same time
likewise take possession thereof, and whenever all Events of Default shall have been cured and the possession of all or substantially all of the Trust Estate shall have been restored to the Company,
such Excepted Property shall again be excepted and excluded from the lien of the Indenture to the extent and otherwise as hereinabove set forth and as set forth in the Indenture. 

        The
Company may, however, pursuant to the Granting Clause Third of the Original Indenture, subject to the lien of the Indenture any Excepted Property or Excludable Property, whereupon
the same shall cease to be Excepted Property or Excludable Property. 

        TO HAVE AND TO HOLD all such property, rights, privileges and franchises hereby and hereafter (by a Supplemental Indenture or otherwise)
granted, bargained, sold, alienated, remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to
be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or
required to be deposited with the Trustee (other than any such cash which is specifically stated in the Indenture not to be deemed part of the Trust Estate) being part of the Trust Estate), unto the
Trustee, and its successors and assigns in the trust created by the Indenture, forever. 

        SUBJECT, HOWEVER, to (i) Permitted Exceptions and (ii) to the extent permitted by Section 13.6 of the Original
Indenture as to property hereafter acquired (a) any duly recorded or perfected prior mortgage
or other lien that may exist thereon at the date of the acquisition thereof by the Company and (b) purchase money mortgages, other purchase money liens, chattel mortgages, conditional sales
agreements or other title retention agreements created by the Company at the time of acquisition thereof. 

2

 

        BUT IN TRUST, NEVERTHELESS, with power of sale, for the equal and proportionate benefit and security of the Holders from time to time of
all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their
terms. 

        UPON CONDITION that, until the happening of an Event of Default and subject to the provisions of Article V of the Original
Indenture, and not in limitation of the rights elsewhere provided in the Original Indenture, including the rights set forth in Article V of the Original Indenture, the Company shall be
permitted to (i) possess and use the Trust Estate, except cash, securities, Designated Qualifying Securities and other personal property deposited, or required to be deposited, with the
Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues,
profits, revenues and other income, products and proceeds of the Trust Estate. 

        THE INDENTURE, INCLUDING THIS SIXTY-THIRD SUPPLEMENTAL INDENTURE, is intended to operate and is to be construed as a deed passing title to
the Trust Estate and is made under the provisions of the laws of the State of Georgia relating to deeds to secure debt, and not as a mortgage or deed of trust, and is given to secure the Outstanding
Secured Obligations. Should the indebtedness secured by the Indenture be paid according to the tenor and effect thereof when the same shall become due and payable and should the Company perform all
covenants contained in the Indenture in a timely manner, then the Indenture shall be canceled and surrendered. 

        AND IT IS HEREBY COVENANTED AND DECLARED that the Series 2012 A Bonds are to be authenticated and delivered and the Trust Estate is
to be held and applied by the Trustee, subject to the covenants, conditions and trusts set forth herein and in the Indenture, and the Company does hereby covenant and agree to and with the Trustee,
for the equal and proportionate benefit of all Holders of the Outstanding Secured Obligations, as follows: 

 
 

  ARTICLE I    
    
    DEFINITIONS    
    

        Section 1.1    Definitions.    

        All
words and phrases defined in Article I of the Original Indenture shall have the same meaning in this Sixty-Third Supplemental Indenture, except as otherwise appears herein, in
this Sixty-Third Supplemental Indenture or unless the context clearly requires otherwise. In addition, the following terms have the following meaning in this Sixty-Third Supplemental Indenture unless
the context clearly requires otherwise: 

        "Business Day" means each Monday, Tuesday, Wednesday, Thursday or Friday which is not a day on which banking institutions in New York or
Georgia are generally authorized or obligated by law or executive order to close. 

        "Closing Date" means November 30, 2012. 

        "Interest Payment Date" means June 1 and December 1 of each year, commencing on June 1, 2013. If the Interest Payment
Date does not fall on a Business Day, such payment may be made on the next succeeding Business Day. 

        "Record Date" means the 15th day (whether or not a Business Day) of the calendar month immediately preceding such
Interest Payment Date. 

        "Securities Depository" means The Depository Trust Company and its successors and assigns or any other securities depository selected by
the Company which agrees to follow the procedures required to be followed by such securities depository in connection with the Series 2012 A Bonds. 

3

 
 
 

  ARTICLE II    
    
    THE SERIES 2012 A BONDS AND
  CERTAIN PROVISIONS RELATING THERETO    
    

        Section 2.1    Terms of the Series 2012 A Bonds.    

        There
shall be created and established a series of Additional Obligations known as and entitled the "First Mortgage Bonds, Series 2012 A" (which series is referred to herein as
the Series 2012 A Bonds). 

        The
aggregate principal amount of the Series 2012 A Bonds which may be authenticated, delivered and Outstanding at any one time is limited to Two Hundred and Fifty Million Dollars
($250,000,000). The Series 2012 A Bonds shall consist of bonds in an aggregate principal amount of $250,000,000, due December 1, 2042. 

        All
payments, including prepayments, made on the Series 2012 A Bonds shall be made as provided in this Sixty-Third Supplemental Indenture and the Series 2012 A Bonds and
shall not be governed by the provisions of Section 1.14 or Article XIV of the Original Indenture. 

        The
Series 2012 A Bonds shall bear interest from their date of issuance, payable semi-annually on each Interest Payment Date. The Series 2012 A Bonds shall bear
interest at the annual rate of 4.20%. 

        The
principal and the Redemption Price of, and interest on, the Series 2012 A Bonds shall be paid to the Person in whose name that Obligation (or one or more Predecessor
Obligations) is registered at the close of business on the Record Date applicable to such Interest Payment Date or Redemption Date. Interest on the Series 2012 A Bonds shall be computed on the
basis of a 360-day year of
twelve 30-day months. The Series 2012 A Bonds shall be dated the date of their authentication. 

        The
Series 2012 A Bonds shall be issued as fully registered global bonds without coupons and in denominations of $1,000 or any integral multiple thereof. The Series 2012 A
Bonds shall be registered in the name of Cede & Co., as nominee of the Securities Depository, pursuant to the Securities Depository's Book-Entry System. When the
Series 2012 A Bonds are held in the Book-Entry System, purchases of beneficial interests in the Series 2012 A Bonds shall be made in book-entry form, without
certificates. If at any time the Book-Entry System is discontinued for the Series 2012 A Bonds, the Series 2012 A Bonds shall be exchangeable for other fully registered
certificated Series 2012 A Bonds of like tenor and of an equal aggregate principal amount, in authorized denominations. The Trustee may impose a charge sufficient to reimburse the Company or
the Trustee for any tax, fee or other governmental charge required to be paid with respect to such exchange or any transfer of a Series 2012 A Bond. The cost, if any, of preparing each new
Series 2012 A Bond issued upon such exchange or transfer, and any other expenses of the Company or the Trustee incurred in connection therewith, shall be paid by the person requesting such
exchange or transfer. 

        Interest
on the Series 2012 A Bonds shall be payable by check mailed to the registered owners thereof. However, interest on the Series 2012 A Bonds shall be paid to any
owner of $1,000,000 or more in aggregate principal amount of the Series 2012 A Bonds by wire transfer to a wire transfer address within the continental United States upon the written request of
such owner received by the Paying Agent not less than five days prior to the Record Date. As long as the Series 2012 A Bonds are registered in the name of Cede & Co., as nominee
of the Securities Depository, such payments shall be made directly to the Securities Depository. The Trustee is hereby designated and agrees to act as the initial Paying Agent for the
Series 2012 A Bonds. 

4

 

        Section 2.2    Optional Redemption.    

        (a)   The
Company may redeem the Series 2012 A Bonds, in whole or in part, on any date or from time to time prior to their maturity, at its option. The Redemption Price
for the Series 2012 A Bonds will be equal to the greater of: 

          (i)  100%
of the principal amount of the Series 2012 A Bonds being redeemed; and 

         (ii)  the
sum of the present values of the remaining principal and interest payments on the Series 2012 A Bonds being redeemed (excluding interest accrued and unpaid
through the Redemption Date), discounted on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at a rate equal to the sum of
(x) the yield to maturity, determined on the third Business Day prior to the Redemption Date, of a U.S. Treasury security having a life equal to the remaining average life of the maturity of
Series 2012 A Bonds being redeemed and trading in the secondary market at the price closest to par, and (y) 25 basis points, plus in each case accrued and unpaid interest thereon to but
excluding the Redemption Date. 

        (b)   If
there is no U.S. Treasury security having a life equal to the remaining average life of the Series 2012 A Bonds being redeemed, the discount rate will be
calculated using a yield to maturity determined on a straight-line basis (rounding to the nearest calendar month, if necessary) from the average yield to maturity, determined on the third
Business Day prior to the Redemption Date, of two U.S. Treasury securities having lives most closely corresponding to the remaining average life of the Series 2012 A Bonds being redeemed and
trading in the secondary market at the price closest to par. 

        (c)   Notice
of redemption shall be given by first class mail, postage prepaid, mailed not less than 30 and not more than 60 days prior to the Redemption Date to the
registered address of each Holder of Series 2012 A Bonds being redeemed, except as otherwise required by the procedures of the Securities Depository. Notice of redemption of the
Series 2012 A Bonds shall be given by the Company or at the Company's request, by the Trustee in the name and at the expense of the Company. 

        (d)   If
less than all of the Outstanding Series 2012 A Bonds are to be redeemed, the Series 2012 A Bonds to be redeemed will be selected by the Trustee in any
method it deems fair and appropriate, and the portion of the Series 2012 A Bonds not so redeemed will be in integral multiples of $1,000. 

        (e)   If,
at the time the notice of optional redemption of the Series 2012 A Bonds is given, the Company has not deposited sufficient funds with the Trustee to pay the
full Redemption Price of the Series 2012 A Bonds to be redeemed, the notice of optional redemption will so state and will further state that the Series 2012 A Bonds will remain
Outstanding as though no redemption notice had been given unless the Company provides, or causes to be provided, to the Trustee, by 2:00 p.m. New York City Time on the Redemption Date, funds
sufficient to pay the full Redemption Price of the Series 2012 A Bonds to be redeemed. The failure of the Company to deposit sufficient funds with the Trustee to effect the redemption will not
constitute a payment or other default by the Company under the Indenture and the Company will not be liable to any Holder of those Series 2012 A Bonds as a result of the failed redemption. If
the Company has deposited funds with the Trustee sufficient to pay the full Redemption Price of the Series 2012 A Bonds to be redeemed at the time the notice of optional redemption is given,
then the Company is obligated to redeem the Series 2012 A Bonds as provided in that notice. 

        Section 2.3    Form of the Series 2012 A Bonds.    The Series 2012 A
Bonds and the Trustee's certificate of authentication for the Series 2012 A Bonds shall be substantially in the form set forth in  Exhibit B attached hereto, with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted in the
Indenture. 

5

 
 
 

  ARTICLE III    
    
    MISCELLANEOUS    
    

        Section 3.1    Supplemental Indenture.    This Sixty-Third Supplemental Indenture is
executed and shall be construed as an indenture supplemental to the Original Indenture, and shall form a part thereof, and the Original Indenture, as heretofore supplemented and as hereby
supplemented and modified, is hereby confirmed. Except to the extent inconsistent with the express terms of this Sixty-Third Supplemental Indenture or the Series 2012 A Bonds, all of the
provisions, terms, covenants and conditions of the Indenture generally applicable to all Obligations shall be applicable to the Series 2012 A Bonds to the same extent as if specifically set
forth herein. All references herein to Sections, Articles, definitions or other provisions of the Original Indenture shall be to such Sections, Articles, definitions or other provisions as they may be
amended or modified from time to time pursuant to the Indenture. 

        Section 3.2    Recitals.    All recitals in this Sixty-Third Supplemental Indenture are
made by the Company only and not by the Trustee; and all of the provisions contained in the Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be
applicable in respect hereof as fully and with like effect as if set forth herein in full. 

        Section 3.3    Successors and Assigns.    Whenever in this Sixty-Third Supplemental
Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Original Indenture, be deemed to include the successors and
assigns of such party, and all the covenants and agreements in this Sixty-Third Supplemental Indenture contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as
aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not. 

        Section 3.4    No Rights, Remedies, Etc.    Nothing in this Sixty-Third Supplemental
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 Outstanding
Secured Obligations, any
right, remedy or claim under or by reason of this Sixty-Third Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions,
stipulations, promises and agreements in this Sixty-Third Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto and of the
Holders of Outstanding Secured Obligations. 

        Section 3.5    Counterparts.    This Sixty-Third Supplemental Indenture may be executed
in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve
undestroyed, shall together constitute but one and the same instrument. 

        Section 3.6    Security Agreement; Mailing Address.    To the extent permitted by
applicable law, this Sixty-Third Supplemental Indenture shall be deemed to be a Security Agreement and Financing Statement whereby the Company grants to the Trustee a security interest in all of the
Trust Estate that is personal property or fixtures under the Uniform Commercial Code, as adopted or hereafter adopted in one or more of the states in which any part of the properties of the Company
are situated. 

The
mailing address of the Company, as debtor, is: 

Oglethorpe
Power Corporation

2100 East Exchange Place

Tucker, Georgia 30084-5336 

6

 

and
the mailing address of the Trustee, as secured party, is: 

U.S.
Bank National Association

Attention: Corporate Trust Services

1349 West Peachtree Street, NW

Suite 1050, Two Midtown Plaza

Atlanta, Georgia 30309 

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7

 

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

 

					
	 Company:
	 	 OGLETHORPE POWER CORPORATION (AN ELECTRIC MEMBERSHIP CORPORATION), an electric membership corporation organized under the laws of the State of Georgia
	

 	
 	
 By:	
 	
  

  Elizabeth B. Higgins
 Executive Vice President and

Chief Financial Officer

 

 

					
	Signed, sealed and delivered

by the Company in the presence of:	 	Attest:	 	  

  Patricia N. Nash
 Secretary

 

 

					
	

  Witness	 	 	 	[CORPORATE SEAL]
	

  Notary Public	
 	

 	
 	

 
	
 (Notarial Seal)	
 	
 	
 	
 

 

 

					
	My commission expires:	 	 	 	 

 

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	 Trustee:
	 	 U.S. BANK NATIONAL ASSOCIATION, a national banking association
	

 	
 	
 By:	
 	
 

 
	Signed and delivered by the	 	 	 	Authorized Agent
	Trustee in the Presence of:	 	 	 	 

 

 

					
	

  Witness	
 	

 	
 	

 
	

  Notary Public	
 	

 	
 	

 
	
 (Notarial Seal)	
 	
 	
 	
 

 

 

					
	My commission expires:	 	 	 	 

 

 

 

 
 

  Exhibit A    
    

        All property of the Company (other than Excepted Property and Excludable Property) in the Counties of Appling, Burke, Carroll, Coweta,
Dekalb, Floyd, Hart, Heard, Monroe, Talbot, Toombs, Warren and Washington, State of Georgia, whether now owned or hereafter acquired. 

A-1

 

 
 

  Exhibit B    
    

 
    FORM OF SERIES 2012 A BOND
  AND
  TRUSTEE'S CERTIFICATE OF AUTHENTICATION    
    

        UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW
YORK CORPORATION ("DTC"), TO OGLETHORPE POWER CORPORATION (AN ELECTRIC MEMBERSHIP CORPORATION) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.

B-1

 
 

			
	No. R-1	 	 $250,000,000

 

  
 

  OGLETHORPE POWER CORPORATION, FIRST MORTGAGE BOND,
  SERIES 2012 A, DUE 2042    
    

REGISTERED
OWNER: CEDE & CO.

PRINCIPAL AMOUNT: TWO HUNDRED AND FIFTY MILLION DOLLARS

ISSUANCE DATE: November 30, 2012

CUSIP NO.: 677050 AJ5 

        Oglethorpe
Power Corporation (An Electric Membership Corporation), formerly known as Oglethorpe Power Corporation (An Electric Membership Generation & Transmission Corporation),
an electric membership corporation existing under the laws of the State of Georgia (together with any successors and assigns, the "Company"), for value received hereby promises to pay to the
registered owner named above or registered assigns, on December 1, 2042 upon the presentation and surrender of this First Mortgage Bond, 4.20% Series 2012 A due December 1, 2042
(this "Series 2012 A Bond"), the principal amount (upon original issuance) of $250,000,000, issued under the Indenture, dated as of March 1, 1997 (the "Original Indenture"), as
heretofore supplemented and as supplemented by the Sixty-Third Supplemental Indenture (the "Sixty-Third Supplemental Indenture"), between the Company, as grantor, and U.S. Bank National Association,
as successor to SunTrust Bank, formerly known as SunTrust Bank, Atlanta, as trustee (the "Trustee") (the Original Indenture, as supplemented, the "Indenture"). 

        The
Company shall pay the principal sum set forth above and pay interest on said principal sum from the date hereof until payment of said principal sum has been made or duly provided
for, semi-annually at the interest rate of 4.20%. 

        The
principal of, and interest on, this Series 2012 A Bond are payable at the principal corporate trust office of the Paying Agent, or of its successor as Paying Agent, or, at the
option of the owner of this Series 2012 A Bond, at the principal office of any Paying Agent appointed in accordance with the Indenture; provided, however, that, subject to the next succeeding
paragraph, interest may be payable, at the option of the Paying Agent, by check or draft drawn upon the Paying Agent and mailed to the registered address of the registered owner of this
Series 2012 A Bond as of the close of business on the applicable Record Date (as defined in the Sixty-Third Supplemental Indenture), or, at the written request of the registered owner of
Series 2012 A Bonds in an aggregate principal amount greater than or equal to $1,000,000 delivered to the Paying Agent at least five days prior to the Record Date next preceding such payment
date, by wire transfer to a wire transfer address in the continental United States as set forth in such request. Payment of the principal of and interest on this Series 2012 A Bond shall be in
any coin or currency of the United States of America as, at the respective times of payment, shall be legal tender for the payment of public and private debts. 

        Notwithstanding
any other provision of this Series 2012 A Bond to the contrary, so long as this Series 2012 A Bond shall be registered on books of the Company kept by the
Obligation Registrar (as defined in the Original Indenture) in the name of The Depository Trust Company, a New York Corporation ("DTC"), or its nominee, the provisions of the Indenture governing the
Book-Entry System (as defined in the Original Indenture) shall govern the manner of payment of the principal of, and interest on, this Series 2012 A Bond. 

        The
Series 2012 A Bonds are equally and ratably secured, to the extent provided in the Indenture, by the Trust Estate, except and excluding the Excepted Property and the
Excludable Property. 

        Reference
is hereby made to the Indenture, a copy of which is on file with the Trustee, for the provisions, among others, with respect to the nature and extent of the rights, duties and
obligations of the Company, the Trustee and the owner of this Series 2012 A Bond, the terms upon which this Series 2012 A Bond is issued and secured, and the modification or amendment of
the Indenture, to all 

B-2

 

of
which the registered owner of this Series 2012 A Bond assents by the acceptance of this Series 2012 A Bond. 

        This
Series 2012 A Bond is transferable, as provided in the Indenture, only upon the registration books of the Company maintained by the Obligation Registrar, which shall be the
Trustee, kept at its principal office, upon presentation at said office of this Series 2012 A Bond with the written request of the registered owner hereof or his attorney duly authorized in
writing, and a written instrument of transfer satisfactory to the Obligation Registrar duly executed by the registered owner or his duly authorized attorney. The Obligation Registrar shall not be
obliged to (i) make any exchange or transfer of this
Series 2012 A Bond during the period beginning at the opening of business fifteen days next preceding the date of the mailing of the notice of redemption of the Series 2012 A Bonds or
(ii) register the transfer of or exchange of any Series 2012 A Bond so selected for redemption in whole or in part, except the unredeemed portion of a Series 2012 A Bond being
redeemed in part. 

        The
Series 2012 A Bonds are issuable in the form of fully registered global bonds without coupons in the denomination of $1,000 each or any integral multiple thereof. Upon payment
of any required tax or other governmental charge and, subject to such conditions, the Series 2012 A Bonds, upon the surrender thereof at the principal office of the Obligation Registrar, with a
written instrument of transfer satisfactory to the Obligation Registrar, duly executed by the registered owner or his duly authorized attorney, may, at the option of the registered owner thereof, be
exchanged for an equal aggregate principal amount of Series 2012 A Bonds of the same interest rate and in any other authorized denominations. 

        This
Series 2012 A Bond shall bear interest from, and including, the date hereof to, but excluding, December 1, 2042. Interest shall be payable in arrears on June 1
and December 1 of each year prior to the maturity date of the Series 2012 A Bonds, commencing on June 1, 2013. Interest on this Series 2012 A Bond shall be computed on the
basis of a 360-day year of twelve 30-day months. 

         Optional Redemption:    The Company may redeem the Series 2012 A Bonds, in whole or in part, on any date or from time to time
prior to their
maturity, at its option. The Redemption Price for the Series 2012 A Bonds will be equal to the greater of: 

	(i)
	100%
of the principal amount of the Series 2012 A Bonds being redeemed; and

	(ii)
	the
sum of the present values of the remaining principal and interest payments on the Series 2012 A Bonds being redeemed (excluding interest accrued
and unpaid through the Redemption Date), discounted on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at a rate equal to the sum
of (i) the yield to maturity, determined on the third Business Day prior to the Redemption Date, of a U.S. Treasury security having a life equal to the remaining average life of the maturity of
Series 2012 A Bonds being redeemed and trading in the secondary market at the price closest to par, and (ii) 25 basis points, plus in each case accrued and unpaid interest thereon to but
excluding the Redemption Date. 

        If
there is no U.S. Treasury security having a life equal to the remaining average life of the Series 2012 A Bonds being redeemed, the discount rate will be calculated using a
yield to maturity determined on a straight-line basis (rounding to the nearest calendar month, if necessary) from the average yield to maturity, determined on the third Business Day prior
to the Redemption Date, of two U.S. Treasury securities having lives most closely corresponding to the remaining average life of the Series 2012 A Bonds being redeemed and trading in the
secondary market at the price closest to par. 

        If
less than all of the outstanding Series 2012 A Bonds are to be redeemed, the Series 2012 A Bonds to be redeemed will be selected by the Trustee in any method it deems
fair and appropriate, and the portion of the Series 2012 A Bonds not so redeemed will be in integral multiples of $1,000. 

B-3

 

        The
registered owner of this Series 2012 A Bond shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take
any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture. 

        All
acts, conditions and things required by the Constitution and statutes of the State of Georgia, the governing rules and procedures of the Company and the Indenture to exist, to have
happened and to have been performed precedent to and in the issuance of this Series 2012 A Bond, do exist, have happened and have been performed. 

        No
covenant or agreement contained in this Series 2012 A Bond, the Indenture or the Sixty-Third Supplemental Indenture shall be deemed to be a covenant or agreement of any
official, officer, agent or employee of the Company in his or her individual capacity, and no officer of the Company executing this Series 2012 A Bond shall be liable personally on this
Series 2012 A Bond or be subject to any personal liability or accountability by reason of the issuance of this Series 2012 A Bond. 

        This
Series 2012 A Bond shall not be entitled to any benefit under the Indenture or be valid until this Series 2012 A Bond shall have been authenticated by the execution by
the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon. 

B-4

 

        IN WITNESS WHEREOF, the Company has caused this Series 2012 A Bond to be executed in its corporate name by its Executive Vice
President and Chief Financial Officer and attested by its Secretary and its corporate seal to be hereunto affixed. 

 

					
	 	 	 OGLETHORPE POWER CORPORATION

(AN ELECTRIC MEMBERSHIP CORPORATION)
	

 	
 	
By:	
 	
 

 
	 	 	 	 	Elizabeth B. Higgins
	 	 	 	 	 Executive Vice President and Chief Financial Officer

 

  

 

					
	(CORPORATE SEAL)	 	 	 	 
	
 Attest:	
 	

 	
 	

 
	

  Patricia N. Nash
 Secretary	
 	

 	
 	

 

 

 B-5

 

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

 

					
	 	 	 U.S. BANK NATIONAL ASSOCIATION, as Trustee
	

 	
 	
By:	
 	
  

  Authorized Agent

 

 Date
of Authentication: 

B-6

 

 
 

  Schedule 1    
    
    RECORDING INFORMATION
  FOR
                        COUNTY,
GEORGIA    
    

 

					
	DOCUMENT

 
	 	RECORDING

INFORMATION 	 	DATE OF

RECORDING 
	Original Indenture	 	 	 	 
	First Supplemental Indenture	 	 	 	 
	Second Supplemental Indenture	 	 	 	 
	Third Supplemental Indenture	 	 	 	 
	Fourth Supplemental Indenture	 	 	 	 
	Fifth Supplemental Indenture	 	 	 	 
	Sixth Supplemental Indenture	 	 	 	 
	Seventh Supplemental Indenture	 	 	 	 
	Eighth Supplemental Indenture	 	 	 	 
	Ninth Supplemental Indenture	 	 	 	 
	Tenth Supplemental Indenture	 	 	 	 
	Eleventh Supplemental Indenture	 	 	 	 
	Twelfth Supplemental Indenture	 	 	 	 
	Thirteenth Supplemental Indenture	 	 	 	 
	Fourteenth Supplemental Indenture	 	 	 	 
	Fifteenth Supplemental Indenture	 	 	 	 
	Sixteenth Supplemental Indenture	 	 	 	 
	Seventeenth Supplemental Indenture	 	 	 	 
	Eighteenth Supplemental Indenture	 	 	 	 
	Nineteenth Supplemental Indenture	 	 	 	 
	Twentieth Supplemental Indenture	 	 	 	 
	Twenty-First Supplemental Indenture	 	 	 	 
	Twenty-Second Supplemental Indenture	 	 	 	 
	Twenty-Third Supplemental Indenture	 	 	 	 
	Twenty-Fourth Supplemental Indenture	 	 	 	 
	Twenty-Fifth Supplemental Indenture	 	 	 	 
	Twenty-Sixth Supplemental Indenture	 	 	 	 
	Twenty-Seventh Supplemental Indenture	 	 	 	 
	Twenty-Eighth Supplemental Indenture	 	 	 	 
	Twenty-Ninth Supplemental Indenture	 	 	 	 
	Thirtieth Supplemental Indenture	 	 	 	 
	Thirty-First Supplemental Indenture	 	 	 	 
	Thirty-Second Supplemental Indenture	 	 	 	 
	Thirty-Third Supplemental Indenture	 	 	 	 
	Thirty-Fourth Supplemental Indenture	 	 	 	 
	Thirty-Fifth Supplemental Indenture	 	 	 	 
	Thirty-Sixth Supplemental Indenture	 	 	 	 
	Thirty-Seventh Supplemental Indenture	 	 	 	 
	Thirty-Eighth Supplemental Indenture	 	 	 	 
	Thirty-Ninth Supplemental Indenture	 	 	 	 
	Fortieth Supplemental Indenture	 	 	 	 
	Forty-First Supplemental Indenture	 	 	 	 
	Forty-Second Supplemental Indenture	 	 	 	 
	Forty-Third Supplemental Indenture	 	 	 	 
	Forty-Fourth Supplemental Indenture	 	 	 	 
	Forty-Fifth Supplemental Indenture	 	 	 	 
	Forty-Sixth Supplemental Indenture	 	 	 	 

 

 

 

					
	DOCUMENT

 
	 	RECORDING

INFORMATION 	 	DATE OF

RECORDING 
	Forty-Seventh Supplemental Indenture	 	 	 	 
	Forty-Eighth Supplemental Indenture	 	 	 	 
	Forty-Ninth Supplemental Indenture	 	 	 	 
	Fiftieth Supplemental Indenture	 	 	 	 
	Fifty-First Supplemental Indenture	 	 	 	 
	Fifty-Second Supplemental Indenture	 	 	 	 
	Fifty-Third Supplemental Indenture	 	 	 	 
	Fifty-Fourth Supplemental Indenture	 	 	 	 
	Fifty-Fifth Supplemental Indenture	 	 	 	 
	Fifty-Sixth Supplemental Indenture	 	 	 	 
	Fifty-Seventh Supplemental Indenture	 	 	 	 
	Fifty-Eighth Supplemental Indenture	 	 	 	 
	Fifty-Ninth Supplemental Indenture	 	 	 	 
	Sixtieth Supplemental Indenture	 	 	 	 
	Sixty-First Supplemental Indenture	 	 	 	 
	Sixty-Second Supplemental Indenture	 	 	 	 

 

 

QuickLinks

Exhibit 4.2

ARTICLE I DEFINITIONS

ARTICLE II THE SERIES 2012 A BONDS AND CERTAIN PROVISIONS RELATING THERETO

ARTICLE III MISCELLANEOUS

Exhibit A

Exhibit B

FORM OF SERIES 2012 A BOND AND TRUSTEE'S CERTIFICATE OF AUTHENTICATION

OGLETHORPE POWER CORPORATION, FIRST MORTGAGE BOND, SERIES 2012 A, DUE 2042

Schedule 1 RECORDING INFORMATION FOR COUNTY, GEORGIAExhibit 10.28

 

JOINT LITIGATION AGREEMENT

 

This Joint Litigation Agreement (this “Agreement”), dated as of November 15, 2012, is entered into by and between American International Group, Inc., a Delaware corporation (“AIG”), and International Lease Finance Corporation, a California corporation (“ILFC”, and together with AIG, the “Parties” and each a “Party”).

 

RECITALS

 

WHEREAS, AIG and ILFC have uncovered evidence that both while they were employed by, and after their employment with, ILFC, certain former officers and senior employees of ILFC engaged in a wide range of improper conduct intending to help a new competing company, Air Lease Corporation, that caused significant harm to both AIG and ILFC;

 

WHEREAS, the misconduct by former ILFC officers and senior employees included, among other acts, redirecting deals with ILFC customers, stealing tens of thousands of documents and computer files containing ILFC proprietary information, and, while being paid by ILFC, working to assist a competing company and seeking to recruit dozens of ILFC employees to join Air Lease Corporation;

 

WHEREAS, given the misconduct by former ILFC officers and employees, on April 24, 2012, AIG and ILFC filed an action commenced in the Superior Court of Los Angeles County, California (such action, together with all filings, proceedings, claims, approvals and other actions related thereto, the “Lawsuit”), in which (1) Air Lease Corporation, a Delaware corporation, and (2) Steven Udvar-Hazy, John Plueger, Marc Baer, Grant Levy, Michael Bai, Housni Chraibi, Lance Pekala, Chi Yan, Robert McNitt, Jenny Van Le and William McCary, each an individual, were named as defendants;

 

WHEREAS, on May 7, 2012, AIG and ILFC jointly agreed to retain Morrison & Foerster as outside counsel in the Lawsuit;

 

WHEREAS, AIG and ILFC wish to establish certain principles for the conduct, control and resolution of the Lawsuit, and any other litigation, arbitration, mediation or other proceeding that relates to or arises out of the facts, circumstances, allegations, claims or defenses that are or may be asserted in the Lawsuit (together with the Lawsuit, the “Action”);

 

WHEREAS, the Parties wish to continue to pursue their common interests in connection with the Action, and to avoid any suggestion of waiver of the confidentiality or immunity of communications and documents protected by the attorney-client privilege, the attorney’s work product doctrine or any other privilege or immunity vis-à-vis potentially adverse or other third parties;

 

 

WHEREAS, in order to pursue a joint action effectively, the Parties have also each concluded that, from time to time, their interests in connection with the Action will be best served by sharing documents, factual material, mental impressions, memoranda, interview reports, litigation or regulatory strategies and other information, including the confidences of each Party, related to the Action, and any notes, analyses, compilations, summaries, data, interpretations, documents, information and other materials otherwise derived, in whole or in part, therefrom, in whatever form or medium produced or maintained, that are maintained or created by the Parties or their agents - all of which will hereafter be referred to as the “Litigation Materials”;

 

WHEREAS, it is one of the purposes of this Agreement to ensure that any exchange and/or disclosure of the Litigation Materials contemplated herein does not diminish in any way the confidentiality of the Litigation Materials and does not constitute a waiver of any privilege or immunity otherwise available; and

 

WHEREAS, it is also important that the Parties agree at the outset as to how the Litigation will be managed, who will pay the costs and expenses of the litigation, and how the Parties can most efficiently and effectively achieve the best outcome possible, while minimizing unnecessary duplication of effort and expense.

 

NOW, THEREFORE, the Parties agree as follows:

 

1.                                      Control of the Action.

 

From the date hereof until the final and unappealable resolution of the Action, at all times and notwithstanding any change of control of ILFC, AIG shall in its sole discretion conduct and control the Action including, without limitation, the development and implementation of legal strategy for the Action, the filing of any motions or pleadings before the Court, the conduct of discovery and related internal fact finding at both AIG and ILFC (including the identification/selection and preparation of any AIG or ILFC witnesses for trial or deposition testimony), any decision to appeal or not to appeal any decisions, judgment or order, and any decision or consent to a settlement, compromise or discharge of the Action or any aspect thereof. For the avoidance of doubt, and consistent with the above, Morrison & Forester, or any other outside counsel engaged by the Parties in connection with the Action, is authorized to take direction only from AIG, though AIG will consult with ILFC on, and use its reasonable best efforts to obtain ILFC’s advance approval of, decisions pertaining to the Litigation which AIG in good faith determines are significant. This will remain true even if the claims in the cases change or counterclaims are asserted, and even if one of the Parties is not a plaintiff in the case.

 

Allocation of Costs and Expenses; Final Award.

 

A.                                    All Costs and Expenses (as defined below) shall be borne by AIG, provided however, that such Costs and Expenses shall be subject to reimbursement pursuant to Section 2(i).

 

B.                                    For purposes of this Agreement, “Costs and Expenses” shall mean any and all out-of-pocket fees, costs and expenses incurred by AIG and ILFC in connection with the Action, provided that AIG shall have consented in advance to any such fees, costs and expenses incurred by ILFC.

 

 

C.                                    The aggregate amounts received by the Parties in a settlement, compromise or final and unappealable resolution of the Action (the “Final Award”) shall be distributed as follows:

 

i.                                          first, to AIG for its incurred and/or paid Costs and Expenses;

 

ii.                                       second, to ILFC for its incurred and/or paid and unreimbursed Costs and Expenses; and

 

iii.                                    third, 50% to AIG and 50% to ILFC.

 

2.                                      Cooperation; Litigation Materials.

 

A.                                    ILFC shall cooperate with AIG in connection with the Action including, without limitation, furnishing or causing to be furnished Litigation Materials, and attending such conferences, discovery proceedings, hearings, trials or appeals, and executing such pleadings, as may be requested by AIG in connection therewith. Such cooperation also shall include the retention by ILFC and, upon AIG’s request, the provision to AIG of Litigation Materials which AIG reasonably believes are relevant to the Action, and making ILFC’s employees, including ILFC senior management, available on a mutually convenient basis to provide additional information and explanation of any Litigation Material provided hereunder and to provide testimony, whether live or by affidavit.

 

B.                                    Any Litigation Materials obtained by AIG or any agent thereof from ILFC or any agent thereof (i) are provided solely for the internal use of AIG and its counsel in connection with the Action and (ii) shall not, without the prior written consent of ILFC, be provided, copied, communicated or otherwise disclosed to any person other than AIG’s counsel and consultants and experts, and as necessary in connection with the Action. The Parties intend that all Litigation Materials provided hereunder shall be protected from disclosure to any third party by the joint-defense privilege, the clients’ attorney-client privilege, the attorneys’ work product doctrine and other applicable privileges and immunities. All Litigation Materials provided hereunder shall be used solely in connection with the Action, and appropriate steps will be taken to maintain the confidentiality of these materials consistent with AIG’s right to prosecute and control the Action.

 

C.                                    If ILFC becomes aware of any litigation, claim, arbitration, allegation, administrative charge or complaint, or proceeding or investigation that is reasonably likely to be related to the Action, ILFC will promptly advise and consult with AIG. The Parties will promptly discuss in good faith whether such matter falls within the ambit of this Agreement. For avoidance of doubt, if the Parties cannot agree, the matter shall be resolved pursuant to Section 9 of this Agreement. In the event that ILFC receives information regarding the filing of any claim for insurance related coverage by any Defendant related to this Action, ILFC will promptly notify AIG of the same.

 

 

D.                                    If any person or entity requests or demands, by subpoena or otherwise, any Litigation Materials from ILFC or its counsel, ILFC will immediately notify AIG, and the Parties shall take the steps necessary to permit the assertion of all applicable rights, privileges and immunities with respect to such Litigation Materials, and otherwise cooperate fully with the other Party in any judicial proceedings relating to the disclosure of Litigation Materials.

 

E.                                     All persons permitted access to the Litigation Materials shall be advised that the Litigation Materials are privileged and subject to the terms of this Agreement and, in the case of persons other than counsel and then-current employees of the Parties, shall execute a written agreement undertaking not to disclose such Litigation Materials or their contents as a condition to being given access to them.

 

F.                                      Neither the execution nor the performance of this Agreement shall create an attorney-client relationship between any Party and anyone other than the counsel of that Party. The Parties acknowledge that the law firm of Morrison & Foerster has been jointly representing them in connection with the Action. In the event that Morrison & Foerster (or any successor counsel) determines that a conflict or other circumstance requires that the Parties be represented in the Action by separate counsel, ILFC expressly acknowledges and agrees that AIG may continue to be represented by Morrison & Foerster (or any successor counsel) and waives any and all objection, and consents, to such continued representation, and ILFC may retain separate counsel, at its own expense, to the extent required thereby. Should ILFC retain separate counsel at any time for any reason, it is agreed and understood that the rights and obligations of the Parties should not be altered or affected, including without limitation AIG’s rights to control the Action set forth in Section 1 hereof. The Parties further agree that AIG shall have the sole right to make or waive any privileges that may arise or that have arisen as a result of their joint representation by counsel, including any predecessors and successor counsel.

 

G.                                    In any proceeding or litigation between the Parties, neither Party may use or admit into evidence against the other Party, except to the extent expressly specified in this Section 3.G, any Litigation Materials of the other Party that were disclosed or exchanged pursuant to this Agreement. This provision does not and shall not prevent a Party from using or admitting into evidence in any litigation between the Parties information or material obtained outside of this Agreement, or Litigation Materials disclosed under this Agreement if available from an independent source. The Parties agree that, in any litigation between them, they may request discovery of any documents or information disclosed pursuant to this Agreement with the express understanding that any such documents or information shall continue to be treated as confidential, privileged, and/or work product vis-à-vis any third parties.

 

 

H.                                   ILFC agrees to cooperate with AIG in any efforts to maintain any insurance coverage or indemnity rights that may exist or that arise with respect to the Action.

 

3.                                      Disclosure. The Parties expressly agree as follows:

 

A.                                    Each Party may make any public disclosures regarding the Action as are required by applicable law;

 

B.                                    After a change in ownership or control of ILFC, ILFC may make appropriate disclosures regarding the Action to its new owner, owners, or control persons as may be applicable; and

 

C.                                    ILFC may, subject to entry into an appropriate confidentiality agreement, make reasonable disclosures regarding the Action to a prospective buyer of ILFC or a substantial portion of its assets;

 

provided, however, that in each of 3(A), 3(B) and 3(C) above, each Party shall provide reasonable advance notice to the other Party and the opportunity for discussion if the other Party requests.

 

4.                                      Notices. All notices and other communications under this Agreement shall be in writing and shall be deemed given to a Party (i) when received, when delivered personally, (ii) seven business days after being mailed by certified mail, return receipt requested, (iii) when received, when sent for overnight delivery by nationally recognized courier (such as Federal Express or DHL), or (iv) upon confirmation of receipt, when sent via fax transmission, to such Party at the following address (or to such other address as such Party may have specified by notice given to the other Party pursuant to this provision):

 

if to AIG,

 

American International Group, Inc.

80 Pine Street

New York, New York 10005

Fax: +1 212 344 6828

Telephone: +1 212 770 7000

Attention: Annette Bernstein

 

if to ILFC,

 

International Lease Finance Corporation

10250 Constellation Boulevard

34th Floor

Los Angeles CA 90067

Fax: +1 310 788 1990

 

 

Telephone:+1 310 557 4859

Attention: Hooman Yazhari,

 

or to such other address and contact as a Party may from time to time direct by written notice.

 

5.                                      Specific Performance.  Each Party acknowledges and agrees that the breach of this Agreement would cause irreparable damage to the other Party and that the other Party shall not have an adequate remedy at law. Therefore, the obligations of each Party under this Agreement shall be enforceable by a decree of specific performance issued by any court of competent jurisdiction, and appropriate injunctive relief may be applied for and granted in connection therewith. Such remedies shall, however, be cumulative and not exclusive and shall be in addition to any other remedies which any Party may have under this Agreement or otherwise.

 

6.                                      Entire Agreement; Amendments and Waivers.  This Agreement constitutes the full, entire and integrated agreement between the Parties with respect to the subject matter of this Agreement, and supersedes all prior written or oral negotiations, correspondence, understandings and agreements between the Parties with respect to the subject matter in this Agreement. This Agreement may be amended, supplemented or changed, and any provision hereof may be waived, only by written instrument making specific reference to this Agreement and such provision signed by the Parties or, in the case of any waiver, by the Party against which such waiver is to be effective. The waiver by any Party of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any other or subsequent breach. No failure on the part of any Party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such Party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. The rights and remedies herein provided are cumulative and none is exclusive of any other, or of any rights or remedies that any Party may otherwise have at law or in equity.

 

7.                                      Certain Interpretative Matters. The section headings of this Agreement are for reference purposes only and are to be given no effect in the construction or interpretation of this Agreement. If any provision of this Agreement is invalid or unenforceable, the balance of this Agreement shall remain in effect. The Parties have participated jointly in the negotiation and drafting of this Agreement and if an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement.

 

8.                                      Governing Law. This Agreement shall be governed in all respects by and construed in accordance with the laws of the State of New York, without giving effect to its principles or rules of conflict of laws to the extent such principles or rules are not mandatorily applicable by statute and would require or permit the application of the laws of another jurisdiction.

 

 

9.                                      Arbitration.

 

A.                                    Any dispute, controversy or claim arising out of, in connection with, or relating to, this Agreement, including with respect to the formation, applicability, breach, termination, validity or enforceability thereof, shall be finally settled by arbitration. The arbitration shall be conducted by a single arbitrator in accordance with the Commercial Rules of the American Arbitration Association in effect at the time of the arbitration, except as they may be modified herein or by the mutual agreement of the Parties.

 

B.                                    Within 60 (sixty) days of the date of this Agreement, the Parties shall agree upon a single arbitrator (who shall be chosen from a list of no less than three, each mutually acceptable to the Parties) to determine any disputes under this Agreement that require, in the judgment of one of the Parties, an expedited resolution. In the event that a Party seeks such an expedited resolution, a Party may notify the other Party of its desire for an expedited resolution, and the Parties thereafter shall cooperate to convene a conference or call with the arbitrator within 48 hours (or sooner if the circumstances warrant) of the notifying party providing notice, in order to set a schedule for an emergent determination of the dispute. At the time of such initial conference or call, the notifying Party may request the arbitrator to issue an interim stay or other order as appropriate to ensure that the interests of the Parties are not harmed during the pendency of the proceeding, prior to which time neither Party shall take any action to impair the other Party’s rights as to the matter in dispute in advance of the arbitrator’s interim ruling. The parties agree that the arbitrator’s rulings in any proceedings under this subsection B shall be final and binding. The Parties agree to maintain all aspects of such proceedings as confidential, and that in any judicial proceeding brought to enforce the order of the arbitrator all actions will be taken to maximize the confidentiality of such judicial proceeding. In addition to the foregoing, the parties may also seek interim relief pursuant to N.Y.C.P.L.R. 7502(c) or applicable federal law in connection with any arbitration commenced in accordance with this Section 8.

 

C.                                    The seat of any arbitration proceeding commenced under this Section 9 shall be New York County in the State of New York. The arbitration shall be final and binding on the Parties. Judgment may be entered upon the award by any court having jurisdiction thereof and having jurisdiction over the relevant party and its assets.

 

10.                               Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement shall be effective upon execution and delivery of either manually signed or facsimile signed signature pages.

 

 

11.                               Further Assurances. The Parties agree to execute, acknowledge and deliver, after the date hereof, without additional consideration, such further assurances, instruments and documents, and to take such further actions, as any other Party may reasonably request in order to fulfill the intent of the Agreement.

 

12.                               Binding Effect; Survival. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns. As of the date of this Agreement, the Parties understand that ILFC is planning to effect an initial public offering of equity securities of ILFC. The Parties agree that this Agreement shall survive any such initial public offering of ILFC, any merger, consolidation or other transaction involving either Party, any change of control of ILFC, any sale or other disposition by AIG of any of its equity interests in ILFC, or any other transaction involving the equity or assets of ILFC, occurring after the date hereof.

 

[THE REMAINDER OF THIS PAGE WAS INTENTIONALLY LEFT BLANK]

 

 

IN WITNESS WHEREOF, each of the Parties has duly executed this Agreement as of the date and year set forth above.

 

 

	
 
    	
AMERICAN   INTERNATIONAL GROUP, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/   Thomas A. Russo
    
	
 
    	
 
    	
 
    
	
 
    	
Name
    	
Thomas   A. Russo
    
	
 
    	
 
    	
 
    
	
 
    	
Title
    	
General   Counsel
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
INTERNATIONAL   LEASE FINANCE CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/   Laurette T. Koellner
    
	
 
    	
 
    	
 
    
	
 
    	
Name
    	
Laurette   T. Koellner
    
	
 
    	
 
    	
 
    
	
 
    	
Title
    	
Executive   Chairman
    

 

Signature Page

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