Document:

Exhibit 4(a) Company Order and Officer's Certificate

    
      

    

    EXHIBIT
      4(a)

    April
      5,
      2007

     

    Company
      Order and Officers' Certificate

    Floating
      Rate Notes, Series B, due 2010

    

    Deutsche
      Bank Trust Company Americas 

    60
      Wall
      Street

    New
      York,
      New York 10005

    

    Ladies
      and Gentlemen:

    

    Pursuant
      to Article Two of the Indenture, dated as of September 1, 1997 (as it may be
      amended or supplemented, the "Indenture"), from Ohio Power Company (the
      "Company") to Deutsche
      Bank Trust Company Americas,
      as
      trustee (the "Trustee"), and the Board Resolutions dated April 26, 2006, a
      copy
      of which certified by the Secretary or an Assistant Secretary of the Company
      is
      being delivered herewith under Section 2.01 of the Indenture, and unless
      otherwise provided in a subsequent Company Order pursuant to Section 2.04 of
      the
      Indenture,

    

    1. The
      Company's Floating Rate Notes, Series B, due 2010 (the "Notes") are hereby
      established. The Notes shall be in substantially the form attached hereto as
      Exhibit 1. 

    

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

    

    (i) the
      aggregate principal amount of Notes which may be authenticated and delivered
      under the Indenture shall be limited to $400,000,000, except as contemplated
      in
      Section 2.01(i) of the Indenture;

    

    (ii) the
      date
      on which the principal of the Notes shall be payable shall be April 5, 2010
      ("Stated Maturity");

    

    (iii) interest
      on the Notes shall be payable on January 5, April 5, July 5 and October 5 of
      each year (each, an "Interest Payment Date"), commencing on July 5, 2007 and
      shall accrue from and including the date of authentication of the Notes to,
      but
      excluding, July 5, 2007, and thereafter, from and including each Interest
      Payment Date to, but excluding, the next succeeding Interest Payment Date or
      Stated Maturity, as the case may be; the Regular Record Date for the
      determination of holders to whom interest is payable on any such Interest
      Payment Date shall be the fifteenth calendar day preceding the relevant Interest
      Payment Date; provided that interest payable on Stated Maturity shall be paid
      to
      the Person to whom principal shall be paid; If
      any
      Interest Payment Date (other than at the Stated Maturity) is not a Business
      Day,
      then such Interest Payment Date shall be the next succeeding Business Day,
      except that if such Business Day is in the next calendar month, such Interest
      Payment Date shall be the immediately preceding Business Day. If the Stated
      Maturity of this Note falls on a day that is not a Business Day, the payment
      of
      principal and interest will be made on the next succeeding Business Day, and
      no
      interest shall accrue on such amounts for the period from and after such Stated
      Maturity; 

    

    (iv) the
      Notes
      will bear interest for each quarterly Interest Period at a per annum rate
      ("Interest Rate") determined by the Calculation Agent, subject to the maximum
      interest rate permitted by New York or other applicable state law, as such
      law
      may be modified by United States law of general application. The Interest Rate
      for each Interest Period will be equal to LIBOR on the Interest Determination
      Date for such Interest Period plus 0.18%; provided, however, that in certain
      circumstances described below, the Interest Rate will be determined by
      substituting bank quotations for LIBOR or by using LIBOR from the previous
      Interest Period, in each case plus the applicable spread.

    

    If
      the
      following circumstances exist on any Interest Determination Date, the
      Calculation Agent shall determine the Interest Rate for the Notes as
      follows:

    

    (1)
      If
      such rate does not appear on the Reuters LIBOR01 Page as of 11:00 a.m. (London
      time) on the Interest Determination Date for that Interest Period, LIBOR will
      be
      determined on the basis of the rates at which deposits in U.S. dollars for
      the
      Interest Period and in a principal amount of not less than $1,000,000 are
      offered to prime banks in the London interbank market by four major banks in
      the
      London interbank market, which may include affiliates of one or more of the
      underwriters, selected by the Calculation Agent (after consultation with the
      Company), at approximately 11:00 a.m., London time on the Interest Determination
      Date for that Interest Period. The Calculation Agent will request the principal
      London office of each such bank to provide a quotation of its rate. If at least
      two such quotations are provided, LIBOR with respect to that Interest Period
      will be the arithmetic mean of such quotations, and the Interest Rate on the
      Notes for that Interest Period shall be equal to LIBOR so calculated plus
      0.18%.

    

    (2)
      If
      fewer than two quotations are provided, LIBOR with respect to that Interest
      Period will be the arithmetic mean of the rates quoted by three major banks
      in
      New York City, which may include affiliates of one or more of the underwriters,
      selected by the Calculation Agent (after consultation with the Company), at
      approximately 11:00 a.m., New York City time, on the first day of that Interest
      Period for loans in U.S. dollars to leading European banks for that Interest
      Period and in a principal amount of not less than $1,000,000. However, if fewer
      than three banks selected by the Calculation Agent to provide quotations are
      quoting as described above, LIBOR for that Interest Period will be the same
      as
      LIBOR as determined for the previous Interest Period. The establishment of
      LIBOR
      by the Calculation Agent shall (in the absence of manifest error) be final
      and
      binding. In this case, the Interest Rate on the Notes for the applicable
      Interest Period shall be equal to LIBOR so calculated plus 0.18%

     

    (3)
      All
      percentages resulting from any calculation of the interest rate on Floating
      Rate
      Notes will be rounded, if necessary, to the nearest one-hundred thousandth
      of a
      percentage point, with five one-millionths of a percentage point rounded upwards
      (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655) and
      9.876544% (or .09876544) being rounded to 9.87654% (or .0987654)), and all
      dollar amounts used in or resulting from such calculation will be rounded to
      the
      nearest cent (with one-half cent being rounded upwards).

    

    (v) This
      Note
      may be redeemed by the Company at its option, in whole or in part, at any time
      after October 3, 2008, upon not less than thirty but not more than sixty days’
previous notice given by mail to the registered owners of the Note, at a
      redemption price equal to the 100% of the principal amount of the Notes being
      redeemed, plus accrued interest thereon to the date of redemption.

    

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

            

    

    

    (vii) the
      title
      of the Notes shall be "Floating Rate Notes, Series B, due 2010";

    

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

    

    (ix) see
      item
      (iv) above;

    

    (x) the
      Notes
      shall not be subject to a Periodic Offering;

    

    (xi) not
      applicable;

    

    (xii) not
      applicable;

    

    (xiii) not
      applicable;

    

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

    

    (xv) not
      applicable;

    

    (xvi) the
      Notes
      shall not be issued as Discount Securities;

    

    (xvii) not
      applicable;

     

    (xviii) see
      item
      (iv) above; and

    

    (xix) Limitation
      on Liens:

    

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

    

    
      	 	
              (a)

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

            

    

    

    
      	 	
              (b)

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

            

    

    

    
      	 	
              (c)

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

            

    

    

    
      	 	
              (d)

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

            

    

    

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

    

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

    

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

    

    3. You
      are
      hereby requested to authenticate $400,000,000 aggregate principal amount of
      Floating Rate Notes, Series B, due 2010, executed by the Company and delivered
      to you concurrently with this Company Order and Officers' Certificate, in the
      manner provided by the Indenture.

    

    4. You
      are
      hereby requested to hold the Notes as custodian for DTC in accordance with
      the
      Blanket Issuer Letter of Representations dated July 9, 2003, from the Company
      to
      DTC.

    

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

    

    6. The
      undersigned Stephan T. Haynes and Thomas G. Berkemeyer, the Assistant Treasurer
      and Assistant Secretary, respectively, of the Company do hereby certify
      that:

    

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

    

    (ii) we
      have
      read the Board Resolutions of the Company and the Opinion of Counsel referred
      to
      above;

    

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

    

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

    

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

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

    

    Very
      truly yours,

    

    OHIO
      POWER COMPANY

    

    

    By: /s/
      Stephan T. Haynes  

    Assistant
      Treasurer

    

    

    And:
      /s/
      Thomas G. Berkemeyer

        Assistant
      Secretary

    

    

    

    Acknowledged
      by Trustee:

    

    DEUTSCHE
      BANK TRUST COMPANY AMERICAS

    

    BY:
      DEUTSCHE BANK NATIONAL TRUST COMPANY

    

    

    By:     
      /s/ David Contino 

        Authorized
      Signatory

    

    

    
      

    

     

    EXHIBIT
      1

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

    

    No.
      R1

    

    OHIO
      POWER COMPANY

    Floating
      Rate Notes, Series B, due 2010

    

    CUSIP:     677415CM1                                      Original
      Issue Date: April 5, 2007

    

    Stated
      Maturity:     04-05-2010

    

    Principal
      Amount:    $400,000,000

    

    Redeemable:      Yes
      [
      X]  No
      [
      ]

    In
      Whole:          Yes
      [
      X]  No
      [
      ]

    In
      Part:  Yes
      [
      X]  No
      [
      ]

    

    OHIO
      POWER COMPANY, a corporation duly organized and existing under the laws of
      the
      State of Ohio (herein referred to as the "Company", which term includes any
      successor corporation under the Indenture hereinafter referred to), for value
      received, hereby promises to pay to CEDE & CO. or registered assigns, the
      Principal Amount specified above on the Stated Maturity specified above, and
      to
      pay interest on said Principal Amount on January 5, April 5, July 5 and October
      5 of each year, commencing on July 5, 2007 at the per annum interest rate
      determined by the Calculation Agent on each Interest Determination Date, as
      such
      terms are defined herein, until the Principal Amount shall have been paid or
      duly provided for. The amount of interest payable on any Interest Payment Date
      shall be computed on the basis of the actual number of days for which interest
      is payable in the relevant Interest Period, divided by 360.

    

    The
      interest so payable, and punctually paid or duly provided for, on any Interest
      Payment Date, as provided in the Indenture, as hereinafter defined, shall be
      paid to the Person in whose name this Note (or one or more Predecessor
      Securities) shall have been registered at the close of business on the fifteenth
      calendar day before each Interest Payment Date (the "Regular Record Date")
      provided that interest payable on the Stated Maturity shall be paid to the
      Person to whom principal is paid. Any such interest not so punctually paid
      or
      duly provided for shall forthwith cease to be payable to the registered holder
      on such Regular Record Date and shall be paid as provided in said
      Indenture.

    If
      any
      Interest Payment Date (other than at the Stated Maturity) is not a Business
      Day,
      then such Interest Payment Date shall be the next succeeding Business Day,
      except that if such Business Day is in the next calendar month, such Interest
      Payment Date shall be the immediately preceding Business Day. If the Stated
      Maturity of this Note falls on a day that is not a Business Day, the payment
      of
      principal and interest will be made on the next succeeding Business Day, and
      no
      interest shall accrue on such amounts for the period from and after such Stated
      Maturity. The principal of and the interest on this Note shall be payable at
      the
      office or agency of the Company maintained for that purpose in the Borough
      of
      Manhattan, the City of New York, New York, in any coin or currency of the United
      States of America which at the time of payment is legal tender for payment
      of
      public and private debts; provided, however, that payment of interest (other
      than interest payable on the Stated Maturity) may be made at the option of
      the
      Company by check mailed to the registered holder at such address as shall appear
      in the Security Register or by wire transfer to the account designated by the
      person entitled thereto.

    

    This
      Note
      is one of a duly authorized series of Notes of the Company (herein sometimes
      referred to as the "Notes"), specified in the Indenture, all issued or to be
      issued in one or more series under and pursuant to an Indenture dated as of
      September 1, 1997 duly executed and delivered between the Company and Deutsche
      Bank Trust Company Americas (formerly Bankers Trust Company), a corporation
      organized and existing under the laws of the State of New York, as Trustee
      (herein referred to as the "Trustee") (such Indenture, as originally executed
      and delivered and as thereafter supplemented and amended being hereinafter
      referred to as the "Indenture"), to which Indenture and all indentures
      supplemental thereto or Company Orders reference is hereby made for a
      description of the rights, limitations of rights, obligations, duties and
      immunities thereunder of the Trustee, the Company and the registered holders
      of
      the Notes. By the terms of the Indenture, the Notes are issuable in series
      which
      may vary as to amount, date of maturity, rate of interest and in other respects
      as in the Indenture provided. This Note is one of the series of Notes designated
      on the face hereof.

    

    This
      Note
      may be redeemed by the Company at its option, in whole or in part, at any time
      after October 3, 2008, upon not less than thirty but not more than sixty days’
previous notice given by mail to the registered owners of the Note, at a
      redemption price equal to the 100% of the principal amount of the Notes being
      redeemed, plus accrued interest thereon to the date of redemption.

    

    This
      Note
      will bear interest for each quarterly Interest Period at a per annum rate
      ("Interest Rate") determined by the Calculation Agent, subject to the maximum
      interest rate permitted by New York or other applicable state law, as such
      law
      may be modified by United States law of general application. The Interest Rate
      for each Interest Period will be equal to LIBOR on the Interest Determination
      Date for such Interest Period plus 0.18%; provided, however, that in certain
      circumstances described below, the Interest Rate will be determined without
      reference to LIBOR. Promptly upon such determination, the Calculation Agent
      will
      notify the Trustee for the Notes, if the person serving as the Trustee is not
      then serving as the Calculation Agent, of the Interest Rate for the new Interest
      Period. The Interest Rate determined by the Calculation Agent, absent manifest
      error, shall be binding and conclusive upon the beneficial owners and registered
      holders of this Note, the Company and the Trustee for the Notes.

     

            
      Interest on this Note will accrue from and including the Original Issue Date
      specified above to, but excluding, July 5, 2007, and thereafter, from and
      including each Interest Payment Date to, but excluding, the next succeeding
      Interest Payment Date or Stated Maturity, as the case may be.

    

    "Business
      Day" means, with respect to this Note, any day that is not a day on which
      banking institutions in New York City are authorized or required by law or
      regulation to close.

    

    "Calculation
      Agent" means Deutsche
      Bank Trust Company Americas
      , or its
      successor appointed by the Company, acting as calculation agent.

    

    "Interest
      Determination Date" means the second London Business Day immediately preceding
      the first day of the relevant Interest Period.

    

    "Interest
      Period" means the period commencing on an Interest Payment Date (or commencing
      on the Original Issue Date, if no interest has been paid or duly made available
      for payment since that date) and ending on the day before the next succeeding
      Interest Payment Date.

    

    "LIBOR"
      means, with respect to any Interest Period, the rate (expressed as a percentage
      per annum) for deposits in U.S. dollars for a three-month period commencing
      on
      the first day of that Interest Period and ending on the next interest payment
      date that appears on Reuters LIBOR01 Page as of 11:00 a.m. (London time) on
      the
      Interest Determination Date for that Interest Period. If such rate does not
      appear on the Reuters LIBOR01 Page as of 11:00 a.m. (London time) on the
      Interest Determination Date for that Interest Period, LIBOR will be determined
      on the basis of the rates at which deposits in U.S. dollars for the Interest
      Period and in a principal amount of not less than $1,000,000 are offered to
      prime banks in the London interbank market by four major banks in the London
      interbank market, which may include affiliates of one or more of the
      underwriters, selected by the Calculation Agent (after consultation with the
      Company), at approximately 11:00 a.m., London time on the Interest Determination
      Date for that Interest Period. The Calculation Agent will request the principal
      London office of each such bank to provide a quotation of its rate. If at least
      two such quotations are provided, LIBOR with respect to that Interest Period
      will be the arithmetic mean of such quotations. If fewer than two quotations
      are
      provided, LIBOR with respect to that Interest Period will be the arithmetic
      mean
      of the rates quoted by three major banks in New York City, which may include
      affiliates of one or more of the underwriters, selected by the Calculation
      Agent
      (after consultation with the Company), at approximately 11:00 a.m., New York
      City time, on the first day of that Interest Period for loans in U.S. dollars
      to
      leading European banks for that Interest Period and in a principal amount of
      not
      less than $1,000,000. However, if fewer than three banks selected by the
      Calculation Agent to provide quotations are quoting as described above, LIBOR
      for that Interest Period will be the same as LIBOR as determined for the
      previous Interest Period. The establishment of LIBOR by the Calculation Agent
      shall (in the absence of manifest error) be final and binding. We will pay
      the
      principal of the Notes and interest payable at maturity in immediately available
      funds at the office of Deutsche
      Bank Trust Company Americas,
      60 Wall
      Street, New York, New York.

    

    "London
      Business Day" means a day other than a Saturday or Sunday that is not a day
      on
      which banking institutions in London, England and New York, New York are
      authorized or obligated by law or executive order to be closed and a day on
      which dealings in deposits in U. S. dollars are transacted, or with respect
      to
      any future date are expected to be transacted, in the London interbank
      market.

    

    “Reuters
      LIBOR01 Page” means the display so designated as the Reuters 3000 Xtra (or such
      other page as may replace that page or that service, or such other service
      as
      may be nominated as the information vendor, for the purpose of displaying rates
      as prices comparable to the London Interbank Offered rate for U.S. dollar
      deposits).

    

    Upon
      request, the Calculation Agent will provide the current Interest Rate and,
      if
      determined, the Interest Rate which will become effective for the next Interest
      Period.

    

    All
      percentages resulting from any calculation of the Interest Rate will be rounded,
      if necessary, to the nearest one-hundred thousandth of a percentage point,
      with
      five one-millionths of a percentage point rounded upwards, and all dollar
      amounts used in or resulting from such calculation will be rounded to the
      nearest cent (with one-half cent being rounded upwards).

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

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

     

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

    

    

    OHIO
      POWER COMPANY

    

    

    By:  
      /s/ Stephan T. Haynes

    Name:
      Stephan T. Haynes

    Title: Assistant
      Treasurer

    Attest:

    

    

    By: 
      /s/ Thomas G. Berkemeyer

    Name:
      Thomas G. Berkemeyer

    Title: Assistant
      Secretary

    
      
        

      

    CERTIFICATE
      OF AUTHENTICATION

    

    

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

    

    Dated:
      April 5, 2007

    

    DEUTSCHE
      BANK TRUST COMPANY AMERICAS

    

    BY:
      DEUTSCHE BANK NATIONAL TRUST COMPANY

    

    

    By: 
      /s/ David Contino

        Authorized
      Signatory

    

    
      
        

      

    

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

    

    (PLEASE
      INSERT SOCIAL SECURITY OR OTHER

    IDENTIFYING
      NUMBER OF ASSIGNEE)

    

    _______________________________________

    

    ________________________________________________________________

    

    ________________________________________________________________

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

    ________________________________________________________________

    ASSIGNEE)
      the within Note and all rights thereunder, hereby

    ________________________________________________________________

    irrevocably
      constituting and appointing such person attorney to 

    ________________________________________________________________

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

    ________________________________________________________________

    power
      of
      substitution in the premises.

     

    Dated:________________________  _________________________

    

    

    NOTICE: The
      signature to this assignment must correspond with the name as written upon
      the
      face of the within Note in every particular, without alteration or enlargement
      or any change whatever and NOTICE: Signature(s) must be guaranteed by a
      financial institution that is a member of the Securities Transfer Agents
      Medallion Program ("STAMP"), the Stock Exchange Medallion Program ("SEMP")
      or
      the New York Stock Exchange, Inc. Medallion Signature Program
      ("MSP").Exhibit 10.1 Stock Purchase Agreement

    Exhibit
      1

    

    

    STOCK
      PURCHASE AGREEMENT

     

    This
      STOCK PURCHASE AGREEMENT dated as of March 29, 2007 (this “Agreement”),
      by
      and between HARRIS
      CORPORATION,
      a
      Delaware corporation (“Seller”),
      and
IHL
      INVESTMENTS, LLC,
      a
      Delaware limited liability company (“Buyer”).

     

    Recitals

     

    Seller
      is
      the record and beneficial owner of 40,000 shares of Series C Convertible
      Preferred Stock, $.001 par value (the “Shares”),
      of
      Teltronics, Inc., a Delaware corporation (the “Company”).
      Buyer
      desires to purchase the Shares from Seller, and Seller desires to sell the
      Shares to Buyer, all upon the terms and subject to the conditions set forth
      in
      this Agreement.

     

    Therefore,
      in reliance on the representations, warranties and agreements made herein and
      in
      consideration of the premises and mutual promises herein contained and for
      other
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto, intending to be legally bound, hereby agree
      as
      follows:

     

    Terms

     

    1.    Sale
      and Purchase of Shares.
      At the
      Closing (defined below), Seller shall sell, assign and transfer to Buyer the
      Shares and all rights that Seller shall have with respect to any and all accrued
      but unpaid dividends relating to the Shares by delivering to Buyer, against
      payment therefor as provided below, one or more certificates evidencing the
      Shares (the “Stock
      Certificates”),
      in
      proper form for transfer or with duly executed stock powers attached thereto.
      

     

    2.    Closing.
      The
      closing of the transactions contemplated by this Agreement (the “Closing”)
      shall
      take place at the offices of Seller, 1025 West NASA Boulevard, Melbourne,
      Florida 32919, or at such other place or places as the parties may agree on
      March 29, 2007, (the “Closing
      Date”)
      and
      shall be effective as of that date.

     

    3.    Purchase
      Price and Payment.
      The
      purchase price payable by Buyer for the Shares shall be ONE MILLION SEVEN
      HUNDRED THOUSAND DOLLARS ($1,700,000.00) (the “Purchase
      Price”).
      ONE
      MILLION THREE HUNDRED THOUSAND DOLLARS ($1,300,000.00) of the Purchase Price
      (the “Cash
      Consideration”)
      shall
      be payable in cash at Closing by wire transfer of immediately available funds
      to
      the account designated by Seller to Buyer prior to the Closing. The remaining
      FOUR HUNDRED THOUSAND DOLLARS ($400,000.00) of the Purchase Price (the
“Deferred
      Consideration”)
      shall
      be due and payable from Buyer to Seller on December 27, 2007 without interest.
      The terms of payment of the Deferred Consideration are further detailed by
      the
      terms of a promissory note made by Buyer in favor of Seller dated of even date
      herewith (the “Note”),
      which
      obligations under the Note shall be secured by a pledge of the Shares pursuant
      to a pledge agreement by Buyer in favor of Seller dated of even date herewith
      (the “Pledge
      Agreement”).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.    Deliveries
      of Buyer at Closing.
      At the
      Closing, Buyer shall deliver to Seller:

     

    (a)    payment
      of the Cash Consideration in accordance with Section 3 hereof;

     

    (b)    the
      Note
      in the amount of the Deferred Consideration in the form of Exhibit
      A
      attached
      hereto; and

     

    (c)    the
      Pledge Agreement in the form of Exhibit
      B
      attached
      hereto.

     

    5.    Representations
      and Warranties of Seller.
      Seller
      represents and warrants to Buyer that: (a) Seller is the owner of the Shares,
      (b) Seller has the corporate power and authority to sell the Shares to Buyer
      and
      (c) the Shares are free of all encumbrances, except for restrictions with
      respect to transferability imposed by the provisions of the Securities Act
      of
      1933, as amended or applicable state securities laws. EXCEPT AS EXPRESSLY
      PROVIDED IN THIS SECTION 5, THE SELLER DISCLAIMS ALL REPRESENTATIONS AND
      WARRANTIES, WHETHER EXPRESSED OR IMPLIED, WRITTEN OR ORAL.

     

    6.    Representations
      and Warranties of Buyer.
      Buyer
      represents and warrants to Seller that:

     

    (a)    Buyer
      acknowledges and agrees that Seller: (i) is not a controlling person with
      respect to the Company; (ii) does not have the power to nominate or appoint
      any
      member of the Company’s board of directors; (iii) is not otherwise involved in
      the management of the Company; and (iv) has a relationship with the Company
      such
      that Seller is not privy to, nor does Seller have access to, information
      regarding the Company that has not been publicly disclosed;

    

    (b)    Buyer
      is
      not relying on Seller to provide Buyer information regarding the Company or
      the
      Shares, and Buyer is looking solely to the Company for such
      information;

     

    (c)    the
      Company has provided Buyer all information relevant to Buyer’s investment
      decision, including, but not limited to, the Company’s financial statements for
      the most recent fiscal year and any and all of the Company’s reports and
      registration statements filed with the Securities Exchange
      Commission;

     

    (d)    the
      Company has permitted Buyer to make such other investigations as Buyer considers
      appropriate to determine or verify the condition (financial or otherwise) of
      the
      Company and to consummate the transactions contemplated by this
      Agreement;

     

    (e)    Buyer
      is
      able to evaluate the merits, risks and other factors bearing on the suitability
      of the Shares as an investment;

     

    (f)    Buyer
      is
      acquiring the Shares for its own account, for investment purposes only and
      not
      with a view to, or for sale in connection with, any distribution of the Shares,
      or with any present intention of selling all or part of the Shares;

     

    (g)    Buyer
      is
      not acting as part of a group, or in concert with any other person or entity,
      in
      connection with its purchase of the Shares; and

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (h)    Buyer
      is
      aware that it may be required to report the acquisition of Shares pursuant
      to
      Section 16 of the Securities Exchange Act and may be subject to other reporting
      obligations under applicable securities laws.

     

    7.    Indemnification.
      Subject
      to the conditions set forth below, each party hereto (the “Indemnifying
      Party,”
as
      applicable) agrees to indemnify and hold harmless the other party hereto and
      its
      respective affiliates, agents, employees, officers and directors (collectively,
      the “Indemnified
      Parties”)
      against any and all loss, liability, claim, damage and reasonable expense
      whatsoever (which shall include, for all purposes of this Section 7, but not
      be
      limited to, reasonable attorneys’ fees and any and all expense whatsoever
      incurred in investigating, preparing or defending against any litigation,
      commenced or threatened, or any claim whatsoever and any and all amounts paid
      in
      settlement of any claim or litigation) as and when incurred arising out of,
      based upon, or in connection with (a) any breach of representation or warranty
      contained in this Agreement, or (b) the Indemnifying Party’s breach of the
      provisions of this Agreement. 

     

     8.    Release
      of Seller. Except
      for Seller’s obligation to deliver the Stock Certificates to Buyer pursuant to
      Section 1 hereof; deliver the Assignment pursuant to Section 9 hereof; and
      Seller’s representations and warranties as set forth in Section 5 hereof: (a)
      Seller and its affiliates, agents, employees, officers and directors shall
      have
      no liability to Buyer or its affiliates, agents, employees, officers or
      directors for any losses, claims or expenses related to or arising out of this
      Agreement; and (b) Buyer for itself and on behalf of its affiliates, agents,
      employees, officers and directors hereby waives and releases any and all claims
      Buyer currently has or may in the future have against Seller and its affiliates,
      agents, employees, officers and directors arising in connection with or
      otherwise related to this Agreement or the transactions contemplated
      hereby.

     

    9.    Assignment
      of Registration Rights Agreement.
      At the
      Closing, Seller shall assign to Buyer the Registration Rights Agreement dated
      March 27, 2002 by and between Seller and the Company. 

     

    10.    Miscellaneous
      Provisions.
      

    

    (a)    Costs
      and Expenses.
      Each
      party shall pay its own expenses in connection with the preparation,
      negotiation, and performance of the terms of this Agreement. 

    

    (b)    Survival
      of Representations and Warranties.
      The
      representations and warranties contained herein or in any certificate,
      statement, document or instrument furnished hereunder shall survive the Closing
      until March 29, 2009. The covenants of Seller and Buyer shall continue in full
      force and effect in accordance with their respective terms.

    

    (c)    Governing
      Law.
      This
      Agreement shall be governed by, and construed and enforced in accordance with
      the laws of the State of Delaware without giving effect to any choice or
      conflicts of laws provisions or rules thereof (whether of the State of Delaware
      or any other jurisdiction) that would cause the application of the laws of
      any
      other jurisdiction other than the State of Delaware.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (d)    Notices.
      All
      notices, consents, requests, instructions, approvals and other communications
      which may be or are required to be given, served or sent by either party
      pursuant to this Agreement, shall be in writing and shall be delivered
      personally, or sent by nationally recognized overnight courier service, or
      by
      registered or certified mail, return receipt requested, postage prepaid,
      addressed as follows:

    

    If
      to
      Buyer:          
  IHL
      Investments, LLC

      3402
      Oak Grove, Suite
      200

      Dallas,
      Texas
      75204

      Attention: Manager

    

    With
      a
      copy to:      Gillespie,
      Roger, Watsky & Jones, P.C.

      3402
      Oak Grove, Suite
      200

      Dallas,
      Texas
      75204

      Attention: Hal
      K.
      Gillespie, Esq.

    

    If
      to
      Seller:             Harris
      Corporation

    1025
      West
      NASA Boulevard

    Melbourne,
      FL 32919

    Attention: Scott
      T.
      Mikuen

     

    Each
      party may designate by notice in writing as aforesaid a new address to which
      any
      notice, demand, request or communication may thereafter be so given, served
      or
      sent. Each notice, demand, request or communication which shall be mailed,
      sent,
      or delivered in the manner described above, shall be deemed sufficiently given,
      served, sent or received for all purposes (i) on the day personally
      delivered or faxed, (ii) on the second day after the date delivered to a
      nationally recognized overnight courier, or (iii) on the fifth day following
      the
      date sent by certified mail.

    

    (e)    Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held by a court
      of
      competent jurisdiction to be illegal, invalid, void or unenforceable, then
      the
      remainder of the terms, provisions, covenants and restrictions of this Agreement
      shall remain in full force and effect.

    

    (f)    Submission
      to Jurisdiction;
      Prevailing Party 

    

    (i)    Jurisdiction.
      EACH
      PARTY HEREBY CONSENTS TO THE JURISDICTION OF ANY FEDERAL COURT LOCATED WITHIN
      THE MIDDLE DISTRICT OF FLORIDA AND ANY STATE COURT WITHIN BREVARD COUNTY, STATE
      OF FLORIDA, AND IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS RELATING
      TO
      THIS AGREEMENT MAY BE LITIGATED IN SUCH COURTS, AND EACH PARTY WAIVES ANY
      OBJECTION WHICH IT MIGHT HAVE BASED ON IMPROPER VENUE OR FORUM NON CONVENIENS.
      EACH PARTY HEREBY WAIVES TRIAL BY JURY IN ANY LITIGATION IN ANY COURT WITH
      RESPECT TO, IN CONNECTION WITH, OR ARISING OUT OF THIS AGREEMENT.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (ii)    Prevailing
      Party.
      In the
      event of a dispute hereunder, the prevailing party in such dispute shall be
      entitled to recover from the non-prevailing party, all costs and expenses
      incurred in connection with such dispute, including reasonable attorneys’ fees
      and costs incurred before and at trial or any other proceedings. 

    

    (g)    Specific
      Performance.
      The
      parties acknowledge and agree that the other would be irreparably damaged if
      any
      of the provisions of this Agreement are not performed in accordance with their
      specific terms or are otherwise breached and that any breach of this Agreement
      could not be adequately compensated in all cases by monetary damages alone.
      Accordingly, in addition to any other right or remedy to which a party may
      be
      entitled, at law or in equity, it shall be entitled to enforce any provision
      of
      this Agreement by specific performance and to temporary, preliminary, and
      permanent injunctive relief to prevent breaches or threatened breaches of any
      of
      the provisions of this Agreement. 

    

    (h)    No
      Third Party Beneficiary.
      This
      Agreement is entered into solely for the benefit of the parties hereto, and
      the
      provisions of this Agreement shall be for the sole and exclusive benefit of
      such
      parties and their respective successors and permitted assigns. No person not
      a
      party hereto or their successors and permitted assigns (including the Company)
      shall be entitled to enforce any provisions hereof or exercise any right
      hereunder.

    

    (i)    Waiver;
      Amendment.
      

    

    (i)    Neither
      the waiver by either of the parties hereto of a breach of or a default under
      any
      one or more of the provisions of this Agreement, nor the failure of either
      of
      the parties, on one or more occasions, to enforce any of the provisions of
      this
      Agreement or to exercise any right or privilege hereunder shall thereafter
      be
      construed as a waiver of any subsequent breach or default of a similar nature,
      or as a waiver of any such provisions, rights or privileges hereunder. No waiver
      shall be binding unless executed by the party making the waiver. 

    

    (ii)    No
      provisions of this Agreement may be amended, modified, discharged or terminated
      except by written agreement duly executed by each of the parties.

    

    (j)    Assignment.
      Neither
      Seller nor Buyer shall assign any of their rights or obligations under this
      Agreement without the prior written consent of the other. This Agreement shall
      be binding upon and shall inure to the benefit of the parties and their
      respective successors and permitted assigns. 

    

    (k)    Entire
      Agreement.
      This
      Agreement, the Note and the Pledge Agreement embody and constitute the entire
      agreement and understanding between the parties with respect to the subject
      matter hereof and supersede and cancel any prior and contemporaneous oral or
      written agreement, letter of intent, proposal executed or delivered by or on
      behalf of any of the parties, representations or understanding related to the
      subject matter hereof, written or oral.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (l)    Counterparts.
      This
      Agreement may be executed in one or more counterparts (including by means of
      facsimile or other non-alterable electronic transmission), and it shall not
      be
      necessary that the signature of, or on behalf of, each party, or that the
      signatures of all persons required to bind any party, appear on each
      counterpart, but it shall be sufficient that the signature of, or on behalf
      of,
      each party, or that the signatures of the persons required to bind any party,
      appear on one or more such counterparts. All counterparts shall constitute
      one
      and the same instrument. It shall not be necessary in making proof of this
      Agreement or any counterpart hereof to produce or account for any of the other
      counterparts.

    

    (m)    No
      Set-Off.
      Neither
      party hereto shall have any right to set-off any amounts due under this
      Agreement against any claims or amounts due to the other parties under any
      other
      arrangement between or among the parties.

    

    (n)    Counsel.
      Each
      party hereto acknowledges each of them have been represented by legal counsel
      with respect to all matters contemplated herein, from the commencement of
      negotiations and at all times through the execution hereof, and each party
      represents and warrants that it has reviewed, knows and understands, and agrees
      with the terms and conditions of this Agreement.

    

    

    

    [THE
      REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK;

    SIGNATURE
      PAGE FOLLOWS]

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Stock Purchase Agreement as
      of
      the date set forth above.

     

    SELLER:

     

    HARRIS
      CORPORATION

     

    By:      
      /s/ Charles J. Greene 

    Name:
       Charles J.
      Greene

    Title:  
       V.P.-Tax &
Treasurer

    

    

    BUYER:

     

    IHL
      Investments, LLC

    

    By:    
        /s/ L. Bailikowsky

    Name:  L.
      Bailikowsky

    Its:     
       Manager

     

    SELLER:

    *
      * * *
      *

    State
      of
      FLORIDA

    County
      of
      Brevard

    

    On
       March
      29, 2007 
      before
      me appeared Charles
      J. Greene  
      who is
personally
      known to me (or proved to me on the basis of satisfactory evidence) to be the
      person whose name is subscribed to within the instrument and acknowledged to
      me
      that he executed the same in his authorized capacity, and that by his signature
      on the instrument the person, or the entity upon behalf of which the person
      acted, executed the instrument.

     

    
       

      
        	
                Notary
                  Public, 

                Commission
                  No. DD263331 

                Expires
                   2/24/08   

                (SEAL)

              	
                 

                 

                 

                /s/
                  Vicki
                  L. Calicchia   

                                    
                  Notary

              

      

      

      BUYER:

      *
        * * *
        *

      State
        of
        TEXAS

      County
        of
        Dallas

      

      On
         March
        29, 2007 
        before
        me appeared L.
        Bailikowsky  
        who is
personally
        known to me (or proved to me on the basis of satisfactory evidence) to be
        the
        person whose name is subscribed to within the instrument and acknowledged
        to me
        that he executed the same in his authorized capacity, and that by his signature
        on the instrument the person, or the entity upon behalf of which the person
        acted, executed the instrument.

      
 

      
        	
                Notary
                  Public, 

                Commission
                  No.  

                Expires 
                  July 25, 2009        

                             
                  (SEAL)

              	
                 

                 

                /s/
                  Patricia
                  Stevens              

                                       
                  Notary

              

      

      

       

      [Signature
        page to Stock Purchase Agreement]

       

       

    

    7

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