Document:

Ohr Pharmaceutical, Inc. S-4/A 

 

Exhibit 10.26

 

NeuBase
Therapeutics, Inc.

 

EMPLOYEE PROPRIETARY INFORMATION

AND INVENTIONS ASSIGNMENT AGREEMENT

 

In consideration of
my employment or continued employment by NeuBase Therapeutics, Inc. (the “Company”),
and the compensation now and hereafter paid to me, I hereby agree as follows:

 

1.             Nondisclosure.

 

1.1           Recognition of the Company’s Rights; Nondisclosure. At all times during my employment with the Company
or one or more of its affiliates, including any parent or any subsidiary of the Company (collectively, the “Company
Group”) and thereafter, I will hold in strictest confidence and will not disclose, use, copy, reverse-engineer, distribute,
misappropriate, lecture upon or publish any of the Company Group’s Proprietary Information (defined below), except as such
disclosure, use or publication may be required in connection with my work for the Company Group, or unless an executive officer
of the Company expressly authorizes such in writing. I will obtain the Company’s written approval before publishing or submitting
for publication any material (written, verbal or otherwise) that relates to my work at the Company Group and/or incorporates any
Proprietary Information. I hereby assign to the Company any rights I may have or acquire in any and all such Proprietary Information
and recognize that all Proprietary Information shall be the sole and exclusive property of the Company Group and its assigns.

 

1.2           Proprietary Information. The term “Proprietary Information” shall mean any and
all confidential and/or proprietary knowledge, data or information of the Company Group or related to the Company Group’s
business or its actual or demonstrably anticipated research or development. By way of illustration but not limitation, “Proprietary
Information” includes (a) trade secrets, technical data, research, products, services, ideas, inventions, mask works,
compositions of matter, ideas, plans, applications, concepts, improvements, works of art, manuals, laboratory notebooks, policies,
information, notes, analyses, compilations, drawings, materials, processes, studies, samples, processes, formulas, artwork, biological
materials, compounds, compositions of matter, source and object codes, data and databases, programs, other works of authorship,
know-how, improvements, discoveries, developments, designs and techniques, whether or not patentable, copyrightable or otherwise
legally protectable (hereinafter collectively referred to as “Inventions”); and (b) information regarding
plans for research, development, new products, services, marketing and selling, business plans, plans for research and development,
budgets and unpublished financial statements, contracts, licenses, prices and costs, suppliers and customers; (c) information regarding
the skills and compensation of other employees, contractors and any other service providers of the Company Group; and (d) the existence
of any business discussions, negotiations or agreements between the Company Group and any third party.

 

1.3           Third Party Information. I understand, in addition, that the Company Group has received and in the future
will receive from third parties confidential or proprietary information (“Third Party Information”) subject
to a duty on the Company Group’s part to maintain the confidentiality of such information and to use it only for certain
limited purposes. During the term of my employment and thereafter, I will hold Third Party Information in the strictest confidence
and will not disclose to anyone (other than the Company Group’s personnel who need to know such information in connection
with their work for the Company Group) or use, except in connection with my work for the Company Group, Third Party Information
unless expressly authorized by an executive officer of the Company in writing.

 

1.4           No Improper Use of Information of Prior Employers and Others. I represent that my employment by the Company
Group does not and will not breach any agreement with any former employer, including any noncompete agreement or any agreement
to keep in confidence or refrain from using information acquired by me prior to my employment by the Company Group. I further represent
that I have not entered into, and will not enter into, any agreement, either written or oral, in conflict with any of my obligations
under this Employee Proprietary Information and Inventions Assignment Agreement (this “Agreement”). During
my employment by the Company Group, I will not improperly make use of, or disclose, any confidential information or trade secrets,
if any, of any former employer or any other person to whom I have an obligation of confidentiality, and I will not bring onto the
premises of the Company Group or use any unpublished documents or any property belonging to any former employer or any other person
to whom I have an obligation of confidentiality unless consented to in writing by that former employer or person. I will use in
the performance of my duties only information which is generally known and used by persons with training and experience comparable
to my own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided
or developed by the Company Group.

 

    1 

     

    

 

1.5           Defend Trade Secrets Act.  Pursuant to the Defend
Trade Secrets Act of 2016, I acknowledge that I will not have criminal or civil liability to the Company under any Federal or State
trade secret law for the disclosure of a trade secret that (A) is made (i) in confidence to a Federal, State, or local government
official, either directly or indirectly, or to an attorney and (ii) solely for the purpose of reporting or investigating a suspected
violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made
under seal. In addition, if I file a lawsuit for retaliation by the Company for reporting a suspected violation of law, I may disclose
the trade secret to my attorney and may use the trade secret information in the court proceeding, if I (X) file any document containing
the trade secret under seal and (Y) do not disclose the trade secret, except pursuant to court order.

 

2.             Assignment Of Inventions.

 

2.1           Proprietary Rights. The term “Proprietary Rights” shall mean all trade secrets,
patents, patent applications, copyrights, mask works, trademarks and other intellectual property rights, along with any registrations
of or applications to register such rights and Moral Rights recognized by the laws of any jurisdiction or country. “Moral
Rights” shall mean any rights to claim authorship of or credit on an Invention, to object to or prevent the modification
or destruction of any Invention or Prior Invention licensed to the Company under Section 2.2, or to withdraw from circulation or
control the publication or distribution of any Inventions or Prior Inventions licensed to the Company under Section 2.2, and any
similar right, existing under judicial or statutory law of any country or subdivision thereof in the world, or under any treaty,
regardless of whether or not such right is denominated or generally referred to as a “moral right.”

 

2.2           Prior Inventions. Inventions, if any, patented or unpatented, which I made prior to the commencement of
my employment with the Company Group are excluded from the scope of this Agreement. To preclude any possible uncertainty, I have
set forth on Exhibit B (Prior Inventions) attached hereto a complete list
of all Inventions that I have, alone or jointly with others, conceived, developed or reduced to practice or caused to be conceived,
developed or reduced to practice prior to the commencement of my employment with the Company Group or that I have an ownership
interest in or which I have a license to use, that I consider to be my property or the property of third parties and that I wish
to have excluded from the scope of this Agreement (collectively referred to as “Prior Inventions”). If
disclosure of any such Prior Invention would cause me to violate any prior confidentiality agreement, I understand that I am not
to list such Prior Inventions in Exhibit B but am only to disclose a cursory
name for each such invention, a listing of the party(ies) to whom it belongs and the fact that full disclosure as to such inventions
has not been made for that reason. A space is provided on Exhibit B for such
purpose. If no such disclosure is attached, I represent that there are no Prior Inventions. If, in the course of my employment
with the Company Group, I incorporate a Prior Invention into a Company Group product, process, machine or other work, the Company
is hereby granted and shall have a nonexclusive, royalty-free, fully paid-up, irrevocable, assumable, perpetual and worldwide license
(with rights to sublicense through multiple tiers of sublicensees) to reproduce, make, have made, make derivative works of, copy,
distribute, publicly perform, publicly display in any form or medium, whether now known or later developed, modify, use, sell,
import, offer for sale and exercise any and all present or future rights in, such Prior Invention. Notwithstanding the foregoing,
I agree that I will not incorporate, or permit to be incorporated, Prior Inventions in any Company Group Inventions without the
Company’s prior written consent. Notwithstanding the foregoing, I acknowledge and agree that if I use any of my Prior Inventions
in the scope of my employment, or include them in any product or service of the Company Group, I hereby grant to the Company a
perpetual, irrevocable, nonexclusive, world-wide, royalty-free license to use, disclose, make, sell, copy, distribute, modify and
create works based on, perform or display such Prior Inventions and to sublicense third parties with the same rights.

 

2.3           Assignment of Inventions. Subject to Sections 2.4, and 2.6, without further compensation, I hereby assign
and agree to assign in the future (when any such Inventions or Proprietary Rights are first reduced to practice or first fixed
in a tangible medium, as applicable) to the Company all my right, title and interest in and to any and all Inventions (and all
Proprietary Rights with respect thereto) whether or not patentable, copyrightable or otherwise legally protectable, made or conceived
or reduced to practice or learned by me, either alone or jointly with others, during the period of my employment with the Company
Group. I understand that this assignment is intended to, and does, extend to subject matters currently in existence, those in development,
as well as those which have not yet been created. Inventions assigned to the Company, or to a third party as directed by the Company
pursuant to this Section 2, are hereinafter referred to as “Company Group Inventions.”

 

2.4           Nonassignable Inventions. This Agreement does not apply to an Invention which qualifies fully as a nonassignable
Invention under Section 2870 of the California Labor Code (hereinafter “Section 2870”). I have reviewed
the notification on Exhibit A (Limited Exclusion Notification) and agree that
my signature acknowledges receipt of the notification.

 

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2.5           Obligation to Keep the Company Informed. During the period of my employment and for six (6) months after
termination of my employment with the Company Group, I will promptly disclose to the Company fully and in writing all Inventions
authored, conceived or reduced to practice by me, either alone or jointly with others. In addition, I will promptly disclose to
the Company all patent applications filed by me or on my behalf or in which I am named as an inventor or co-inventor within a year
after termination of employment. At the time of each such disclosure, I will advise the Company in writing of any Inventions that
I believe fully qualify for protection under Section 2870; and I will at that time provide to the Company in writing all evidence
necessary to substantiate that belief. The Company will keep in confidence and will not use for any purpose or disclose to third
parties without my consent any confidential information disclosed in writing to the Company pursuant to this Agreement relating
to Inventions that qualify fully for protection under the provisions of Section 2870. I will preserve the confidentiality of any
Invention that does not fully qualify for protection under Section 2870.

 

2.6           Government or Third Party. I also agree to assign all my right, title and interest in and to any particular
Company Group Invention to a third party, including without limitation the United States, as directed by the Company.

 

2.7           Works for Hire. I acknowledge that all original works of authorship which are made by me (solely or jointly
with others) within the scope of my employment and which are protectable by copyright are “works made for hire,” pursuant
to United States Copyright Act (17 U.S.C., Section 101).

 

2.8           Enforcement of Proprietary Rights. I will assist the Company Group in every proper way to obtain, and
from time to time enforce, United States and foreign Proprietary Rights relating to Company Group Inventions in any and all countries.
To that end I will execute, verify and deliver such documents and perform such other acts (including appearances as a witness)
as the Company may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing such
Proprietary Rights and the assignment thereof. In addition, I will execute, verify and deliver assignments of such Proprietary
Rights to the Company or its designee. My obligation to assist the Company with respect to Proprietary Rights relating to such
Company Group Inventions in any and all countries shall continue beyond the termination of my employment, but the Company shall
compensate me at a reasonable rate after my termination for the time actually spent by me at the Company’s request on such
assistance.

 

In the event the Company is unable for
any reason, after reasonable effort, to secure my signature on any document needed in connection with the actions specified in
the preceding paragraph, I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as
my agent and attorney in fact, which appointment is coupled with an interest, to act for and on my behalf to execute, verify and
file any such documents and to do all other lawfully permitted acts to further the purposes of the preceding paragraph with the
same legal force and effect as if executed by me. I hereby waive and quitclaim to the Company any and all claims, of any nature
whatsoever, which I now or may hereafter have for infringement of any Proprietary Rights assigned hereunder to the Company.

 

3.             Records. I agree to keep and maintain adequate and current
records (in the form of notes, sketches, drawings and in any other form that may be required by the Company) of all Proprietary
Information developed by me and all Inventions made by me during the period of my employment at the Company Group, which records
shall be available to and, to the extent related to Proprietary Information of the Company Group or Company Group Inventions, remain
the sole property of the Company at all times.

 

4.             Additional Activities. I agree that during the period of
my employment by the Company Group I will not, without the Company’s express written consent, engage in any employment or
business activity which is competitive with, or would otherwise conflict with, my employment by the Company Group. I agree further
that for the period of my employment by the Company Group and for one (l) year after the date of termination of my employment,
(a) I will not, either directly or through others, solicit or attempt to solicit any employee, independent contractor or consultant
of the Company Group to terminate his, her or its relationship with the Company Group in order to become an employee, consultant
or independent contractor to or for any other person or entity, or (b) directly or indirectly solicit or otherwise take away customers
or suppliers of the Company Group if, in so doing, I access, use or disclose any trade secrets or Proprietary Information of the
Company Group. I acknowledge and agree that the Company Group’s lists of customers and suppliers, including their buying
and selling habits and special needs, whether created or obtained by, or disclosed to me during my employment, constitute Proprietary
Information of the Company Group. I acknowledge that the restrictions under this Section 4 are necessary for the Company Group
to protect its Confidential Information. I acknowledge and agree that compliance with this Agreement will not unduly burden or
interfere with my ability to earn a living following termination of my relationship with the Company Group.

 

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5.             No Conflicting Obligation. I represent that my performance
of all the terms of this Agreement and as an employee of the Company Group does not and will not breach any agreement to keep in
confidence information acquired by me in confidence or in trust prior to my employment by the Company Group. I have not entered
into, and I agree I will not enter into, any agreement either written or oral in conflict herewith.

 

6.             Return of Company Documents.  When I leave the employ of
the Company Group, I will deliver to the Company any and all of the Company Group’s property, equipment, drawings, notes,
memoranda, specifications, devices, formulas, and documents, together with all copies thereof, and any other material containing
or disclosing any Company Group Inventions, Third Party Information or Proprietary Information of the Company Group and certify
in writing that I have fully complied with the foregoing obligation. I agree that I will not copy, delete or alter any information
contained upon my Company Group computer or other Company Group equipment before I return the computer or such other equipment
to the Company. In addition, if I have used any personal computer, server or e-mail system to receive, store, review, prepare or
transmit any Company Group information, including but not limited to, Proprietary Information, I agree to provide the Company with
a computer-useable copy of all such Proprietary Information and then permanently delete and expunge such Proprietary Information
from those systems; and I agree to provide the Company access to my system as reasonably requested to verify that the necessary
copying and/or deletion is completed. I further agree that any property situated on the Company Group’s premises and owned
by the Company Group, including disks and other storage media, filing cabinets or other work areas, is subject to inspection by
the Company Group’s personnel at any time with or without notice. Prior to the termination of my employment or promptly after
termination of my employment, I will cooperate with the Company in attending an exit interview and will certify in writing that
I have complied with the requirements of this section and in which I acknowledge my continuing obligations under this Agreement.

 

7.             Legal And Equitable Remedies. Because my services are personal
and unique and because I may have access to and become acquainted with the Proprietary Information of the Company Group, the Company
shall have the right to enforce this Agreement and any of its provisions by injunction, specific performance or other equitable
relief, without bond and without prejudice to any other rights and remedies that the Company may have for a breach of this Agreement.

 

8.             Notices.  Any notices required or permitted hereunder
shall be given to the appropriate party at the address specified below or at such other address as the party shall specify in writing.
Such notice shall be deemed given upon personal delivery to the appropriate address or if sent by certified or registered mail,
three (3) days after the date of mailing.

 

9.             Notification Of New Employer or Firm. In the event that
I leave the employ of the Company Group, I hereby consent to the notification of each of my future employers (and any other organization
to which I provide services) of my rights and obligations under this Agreement by the Company providing a copy of this Agreement
or otherwise.

 

10.           General Provisions.

 

10.1         Governing Law; Consent to Personal Jurisdiction. This Agreement will be governed by and construed according
to the laws of the State of Pennsylvania, as such laws are applied to agreements entered into and to be performed entirely within
Pennsylvania between Pennsylvania residents, without giving effect to any conflicts of laws principles that require the application
of the law of a different state. I hereby expressly consent to the personal jurisdiction and venue of the state and federal courts
located in Allegheny County, Pennsylvania for any lawsuit filed there against me by the Company arising from or related to this
Agreement.

 

10.2         Severability. In case any one or more of the provisions contained in this Agreement shall, for any reason,
be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect
the other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision
had never been contained herein. If moreover, any one or more of the provisions contained in this Agreement shall for any reason
be held to be excessively broad as to duration, geographical scope, activity or subject, it shall be construed by limiting and
reducing it, so as to be enforceable to the extent compatible with the applicable law as it shall then appear.

 

10.3         Successors and Assigns. This Agreement will be binding upon my heirs, executors, administrators and other
legal representatives and will be for the benefit of the Company, its successors, and its assigns.

 

10.4         Survival. The provisions of this Agreement shall survive the termination of my employment and the assignment
of this Agreement by the Company to any successor in interest or other assignee.

 

10.5         Employment. I understand that this Agreement does not constitute a contract of employment or obligate
the Company Group to employ me for any stated period of time. I agree and understand that, unless otherwise provided in a separate
agreement between any member of the Company Group and me, I am an “at will” employee of the Company Group and nothing
in this Agreement shall interfere in any way with my right or the Company Group’s right to terminate my employment at any
time, with or without cause and with or without advance notice.

 

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10.6         Waiver. No waiver by the Company of any breach of this Agreement shall be a waiver of any preceding or
succeeding breach. No waiver by the Company of any right under this Agreement shall be construed as a waiver of any other right.
The Company shall not be required to give notice to enforce strict adherence to all terms of this Agreement.

 

10.7         Advice of Counsel. I acknowledge that, in executing this Agreement, I have had the opportunity to seek
the advice of independent legal counsel, and I have read and understood all of the terms and provisions of this Agreement. This
Agreement shall not be construed against any party by reason of the drafting or preparation hereof.

 

10.8         Voluntary Execution. I certify and acknowledge that I have carefully read all of the provisions of this
Agreement, that I understand and have voluntarily accepted such provisions, and that I will fully and faithfully comply with such
provisions.

 

10.9         Entire Agreement. The obligations pursuant to Sections 1, 2 and 3 of this Agreement shall apply to any
time during which I was previously employed, or am in the future employed, by the Company Group as a consultant if no other agreement
governs nondisclosure and assignment of inventions during such period. This Agreement together with that certain offer letter by
and between the Company and me, dated as of May 18, 2019 (as may be amended or restated from time to time),] is the final, complete
and exclusive agreement of the parties with respect to the subject matter hereof and supersedes and merges all prior discussions
between the parties with respect to the subject matter hereof. No modification of or amendment to this Agreement, nor any waiver
of any rights under this Agreement, will be effective unless in writing and signed by the party to be charged. Any subsequent change
or changes in my duties, salary or compensation will not affect the validity or scope of this Agreement.

 

This Agreement shall
be effective as of the first day of my employment with the Company Group, namely immediately after the merger with Ohr Pharmaceutical
is consumated.

 

I
have read this agreement carefully and understand its terms. I have completely filled out Exhibit B to this agreement.

 

Dated: 5/18/2019

 

	/s/ Sam Backenroth	 
	(Signature)	 
	 	 	 
	Name: Sam Backenroth	 
	 	 	 
	Accepted And Agreed
    To:	 
	 	 	 
	NeuBase Therapeutics,
    Inc.	 
	 	 	 
	By: 	/s/ Dietrich Stephan	 
	 	 	 
	Name: Dietrich Stephan	 
	 	 	 
	Title: CEO	 

 

	Address:	213 Smithfield Street
	 	Pittsburgh, PA 15222
	 	 
	Dated: 5/18/2019

 

     

     

    

 

Exhibit
A

 

LIMITED EXCLUSION NOTIFICATION

 

This
Is To Notify you in accordance with Section 2872 of the California Labor Code that the foregoing Agreement between you
and the Company does not require you to assign or offer to assign to the Company any invention that you developed entirely on your
own time without using the Company’s equipment, supplies, facilities or trade secret information except for those inventions
that either:

 

1.             Relate
at the time of conception or reduction to practice of the invention to the Company’s business, or actual or demonstrably
anticipated research or development of the Company; or

 

2.             Result
from any work performed by you for the Company.

 

To the extent a provision
in the foregoing Agreement purports to require you to assign an invention otherwise excluded from the preceding paragraph, the
provision is against the public policy of this state and is unenforceable.

 

This limited exclusion
does not apply to any patent or invention covered by a contract between the Company and the United States or any of its agencies
requiring full title to such patent or invention to be in the United States.

 

I
Acknowledge Receipt of a copy of this notification. 

	 	 	 	 	 
	 	By: 	 
	 	 	 
	 	Name: 	 
	 	 	 
	 	Date: 	 	 

 

    A-1 

     

    

 

Exhibit
B

 

		TO:	NeuBase Therapeutics,
Inc.

 

		FROM:	Sam Backenroth

 

		DATE:	5/18/2019

 

		SUBJECT:	Prior Inventions

 

1.            Except
as listed in Section 2 below, the following is a complete list of all inventions or improvements relevant to the subject matter
of my employment by NeuBase Therapeutics, Inc. (the “Company”) that have been made or conceived or first
reduced to practice by me alone or jointly with others prior to my engagement by the Company:

 

		☐	No inventions or improvements.

 

		☐	See below:

 

	 	 
	 	 
	 	 
	 	 
	 	 

 

		☐	Additional sheets attached.

 

2.            Due
to a prior confidentiality agreement, I cannot complete the disclosure under Section 1 above with respect to inventions or improvements
generally listed below, the proprietary rights and duty of confidentiality with respect to which I owe to the following party(ies):

 

	 	Invention
    or Improvement	 	Party(ies)	 	Relationship
	 	 	 	 	 	 
	1.	 	 	 	 	 
	 	 	 	 	 	 
	2.	 	 	 	 	 
	 	 	 	 	 	 
	3.	 	 	 	 	 
	 	 	 	 	 	 
	☐	Additional
    sheets attached.	 	 	 	 

 

    A-1Exhibit

Exhibit 4(a)

May 22, 2019

Company Order and Officers’ Certificate
4.00% Senior Notes, Series O, due 2049

The Bank of New York Mellon Trust Company, N.A., as Trustee
2 North LaSalle Street
Chicago, Illinois 60602

Ladies and Gentlemen:

Pursuant to Articles Two and Thirteen 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 The Bank of New York Mellon Trust Company, N.A., as successor trustee (the “Trustee”), and the Board Resolutions dated November 27, 2018, copies of which certified by the Secretary or an Assistant Secretary of the Company are being delivered herewith under Section 2.01 of the Indenture, and unless otherwise provided in a subsequent Company Order pursuant to Section 2.04 of the Indenture,

		
	1.
	The Company’s 4.00% Senior Notes, Series O, due 2049 (the “Notes”) are hereby established.  The Notes shall be in substantially the form attached hereto as Exhibit 1. 

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

(i)    The aggregate principal amount of Notes which may be authenticated and delivered under the Indenture shall be limited to $450,000,000 for the Notes, except as contemplated in Section 2.01(i) of the Indenture and except that such principal amount may be increased from time to time; all Notes need not be issued at the same time and the series may be reopened at any time, without the consent of any securityholder, for issuance of additional Notes, which Notes will have the same interest rate, maturity and other terms as those initially issued (other than the date of issuance, the issue price and, in some circumstances, the initial interest accrual date and the initial interest payment date);

(ii)    The date on which the principal of the Notes shall be payable shall be June 1, 2049;

(iii)    Interest shall accrue from the date of authentication of the Notes; the Interest Payment Dates on which such interest will be payable shall be June 1 and December 1, and the Regular Record Date for the determination of holders to whom interest is payable on any such Interest Payment Date shall be the May 15 or November 15, respectively; provided that the first Interest Payment Date shall be December 1, 2019 and interest payable on the Stated Maturity Date of the Notes or any Redemption Date shall be paid to the Person to whom principal shall be paid;

(iv)     The interest rate at which the Notes shall bear interest shall be 4.00% per annum;

(v)     The Notes may be redeemed by the Company at its option, in whole at any time or in part from time to time, upon not less than thirty but not more than sixty days’ prior notice (either by mail or in compliance with the applicable procedures of DTC).  At any time prior to December 1, 2048 (six months prior to the maturity date (the “Par Call Date”)), the Company may redeem the Notes either as a whole or in part at a redemption price equal to the greater of (1) 100% of the principal amount of the Notes  being redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes being redeemed that would be due if such Notes matured on the Par Call Date (excluding the portion of any such interest accrued to but excluding the date of  redemption), discounted (for purposes of determining present value) to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 20 basis points, plus, in each case, accrued and unpaid interest thereon to but excluding the date of redemption.

At any time on or after the Par Call Date the Company may redeem the Notes in whole or in part at 100% of the principal amount of the Notes being redeemed, plus accrued and unpaid interest thereon to but excluding the date of redemption.

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

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

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

“Reference Treasury Dealer” means a primary U.S. Government securities dealer or dealers selected by the Company and notified by the Company to the Trustee.

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

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Treasury Dealer at or before 3:30 p.m., New York City time, on the third Business Day preceding such redemption date.
    
“Treasury Rate” means, with respect to any redemption, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated by the Independent Investment Banker using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date.

		
	(vi) 
	(a) the Notes  shall be issued in the form of a Global Note; (b) the Depositary for the 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 the Note attached hereto;

		
	(vii)
	the title of the Notes shall be “4.00% Senior Notes, Series O, due 2049”;

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

		
	(ix)
	not applicable;

		
	(x)
	the Notes may be subject to a Periodic Offering;

		
	(xi)
	not applicable;

		
	(xii)
	not applicable;

		
	(xiii)
	not applicable;

		
	(xiv)
	the Notes shall be issuable in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof;

		
	(xv)
	not applicable;

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

		
	(xvii)
	not applicable;

		
	(xviii)
	not applicable; 

		
	(xix)
	Limitations on Liens:

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

3

it prevent any of them from creating or permitting to exist Liens on their property or assets to secure any Secured Debt.  In addition, this restriction does not prevent the creation or existence of:

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

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

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

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

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

“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 the Company’s subsidiaries.

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

		
	3.
	You are hereby requested to authenticate Global Notes representing $450,000,000 aggregate principal amount of 4.00% Senior Notes, Series O, due 2049 ( 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 Global 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, Renee V. Hawkins and William E. Johnson, the Assistant Treasurer and 

4

Assistant Secretary, respectively, of the Company do hereby certify that:

		
	(i)
	The form and terms of the Notes have been established in conformity with the provisions of the Indenture;

		
	(ii)
	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;

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

		
	(iv)
	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;

		
	(v)
	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 

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

5

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

Very truly yours,

OHIO POWER COMPANY

By:     /s/ Renee V. Hawkins
Renee V. Hawkins
Assistant Treasurer

And:   /s/ William E. Johnson
William E. Johnson    
Assistant Secretary

Acknowledged by Trustee:

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

By:      /s/ R. Tarnas
 Authorized Signatory

6

Exhibit 1

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

	
				
	No.   R-1
	 

	 
	 
	 
	 

	OHIO POWER COMPANY

	4.00% Senior Notes, Series O, due 2049

	 
	 
	 
	 

	 
	 
	 
	 

	CUSIP:  677415CR0    
	Original Issue Date:  May 22, 2019

	 
	 
	 
	 

	Stated Maturity:  June 1, 2049
	 Interest Rate:    4.00%

	 
	 
	 
	 

	Principal Amount:  $450,000,000
	 

	 
	 
	 
	 

	Redeemable:
	Yes  þ    
	No  o
	 

	In Whole:
	Yes  þ
	No  o
	 

	In Part:
	Yes  þ
	No  o
	 

                                                    

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 from the Original Issue Date specified above or from the most recent interest payment date (each such date, an “Interest Payment Date”) to which interest has been paid or duly provided for, semi-annually in arrears on June 1 and December 1 in each year, commencing on December 1, 2019, at the Interest Rate per annum specified above, until the Principal Amount shall have been paid or duly provided for.  Interest shall be computed on the basis of a 360-day year of twelve 30-day months.

The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date, as provided in the Indenture, as hereinafter defined, shall be paid to the Person in whose name this Note (or one or more Predecessor Securities) shall have been registered at the close of business on the Regular Record Date with respect to such Interest Payment Date, which shall be the May 15 or November 15 (whether or not a Business Day) prior to such Interest Payment Date, provided that interest payable on the Stated Maturity or any redemption date shall be paid to the Person to whom principal is paid.  Any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and shall be paid as provided in said Indenture.

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

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

This Note may be redeemed by the Company at its option, in whole at any time or in part from time to time, upon not less than thirty but not more than sixty days’ prior notice (either by mail or in compliance with the applicable procedures of DTC).  At any time prior to December 1, 2048 (six months prior to the maturity date (the “Par Call Date”)), the Company may redeem the Notes either as a whole or in part at a redemption price equal to the greater of (1) 100% of the principal amount of the Notes  being redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes being redeemed that would be due if such Notes matured on the Par Call Date (excluding the portion of any such interest accrued to but excluding the date of  redemption), discounted (for purposes of determining present value) to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 20 basis points, plus, in each case, accrued and unpaid interest thereon to but excluding the date of redemption.

At any time on or after the Par Call Date the Company may redeem the Notes in whole or in part at 100% of the principal amount of the Notes being redeemed, plus accrued and unpaid interest thereon to but excluding the date of redemption.

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term 

2

(“remaining life”) of the Notes (assuming, for this purpose, that the Notes being redeemed matured on the Par Call Date) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining life of the Notes.

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

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

“Reference Treasury Dealer” means a primary U.S. Government securities dealer or dealers selected by the Company and notified by the Company to the Trustee.

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Company and notified to the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company and the Trustee by such Reference Treasury Dealer at or before 3:30 p.m., New York City time, on the third Business Day preceding such redemption date.
    
“Treasury Rate” means, with respect to any redemption, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated by the Independent Investment Banker using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date.

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

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

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

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

    

3

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

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

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

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

    

4

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 $2,000 and any integral multiples of $1,000 in excess 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 the same authorized denomination, as requested by the Holder surrendering the same.

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

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.

    

5

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

OHIO POWER COMPANY

By:  _________________________                    
Renee V. Hawkins
Assistant Treasurer
Attest:

By: __________________________                      
William E. Johnson
Assistant Secretary

6

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:  May 22, 2019

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

By: ___________________________
Authorized Signatory
    

7

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”).

8

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