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THIRTY-SEVENTH SUPPLEMENTAL INDENTURE

Addendum or Modifications

THIRTY-SEVENTH SUPPLEMENTAL INDENTURE | Document Parties: BNY MIDWEST TRUST COMPANY | HARRIS TRUST AND SAVINGS BANK | WESTAR ENERGY, INC You are currently viewing:
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BNY MIDWEST TRUST COMPANY | HARRIS TRUST AND SAVINGS BANK | WESTAR ENERGY, INC

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Title: THIRTY-SEVENTH SUPPLEMENTAL INDENTURE
Governing Law: Kansas     Date: 1/18/2005
Industry: Electric Utilities     Sector: Utilities

THIRTY-SEVENTH SUPPLEMENTAL INDENTURE, Parties: bny midwest trust company , harris trust and savings bank , westar energy  inc
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Exhibit 4.2

 




 

WESTAR ENERGY, INC.

 

TO

 

BNY MIDWEST TRUST COMPANY

as Trustee

 

(as Successor to

HARRIS TRUST AND SAVINGS BANK)

 




 

THIRTY-SEVENTH SUPPLEMENTAL INDENTURE

 

Dated as of June 17, 2004

 

First Mortgage Bonds, 6.00% Series Due 2014

 




 

-i-




TABLE OF CONTENTS a

 

 

         

 

  

 

  

Page

 


Parties

  

1

Recitals

  

1

Granting Clause

  

4

Habendum

  

6

Exceptions and Reservations

  

6

 

  

ARTICLE I

  

 

 

  

Description of Bonds of the

  

 

 

  

2014 Series

  

 

SECTION 1.

  

General Description of Bonds of the 2014 Series

  

7

SECTION 2.

  

Denominations of Bonds of the 2014 Series and privilege of exchange

  

8

SECTION 3.

  

Form of Bonds of the 2014 Series

  

8

SECTION 4.

  

Execution and Form of Temporary Bonds of the 2014 Series

  

13

 

  

ARTICLE II

  

 

 

  

Issue of Bonds of the 2014 Series

  

 

SECTION 1.

  

Limitations as to Principal Amount

  

13

SECTION 2.

  

Execution and Delivery of Bonds of the 2014 Series

  

13






a

Note: The Table of Contents is not part of this Supplemental Indenture and should not be considered as such. It is included only for purposes of convenience.

 

-ii-




 

         

 

  

 

  

Page

 


 

  

ARTICLE III

  

 

 

  

Redemption and Substitution

  

 

SECTION 1.

  

Optional Redemption

  

13

SECTION 2

  

Substitution of Bonds of the 2014 Series

  

15

 

  

ARTICLE IV

  

 

 

  

Additional Covenants

  

 

SECTION 1.

  

Title to mortgaged property

  

16

SECTION 2.

  

To retire certain portions of Bonds upon release of all or substantially all of the electric properties

  

16

 

  

ARTICLE V

  

 

AMENDMENTS AND RESERVATIONS OF RIGHTS TO AMEND THE ORIGINAL INDENTURE

SECTION 1.

  

So long as bonds issued prior to January 1, 1997 remain outstanding:

  

 

 

  

Bonds issuable on basis only of 60% of net bondable value of property additions not subject to an unfunded prior lien

  

17

 

  

Amendment of definition of net bondable value of property additions not subject to an unfunded prior lien

  

17

 

  

Monies deposited with Trustee under Section 5(a) of Article III of the Original Indenture may not be withdrawn in an amount in excess of 60% of net bondable value of property additions not subject to an unfunded prior lien, notwithstanding provisions of Section 3(a) of Article VIII of the Original Indenture

  

17

 

  

Amendment of definition of net bondable value of property additions subject to an unfunded prior lien

  

18

 

  

Amendment of covenants in Sections 14 and 16 of Article IV and Section 1 of Article XII of the Original Indenture with respect to acquisition of property subject to an unfunded prior lien

  

18

 

  

Definitions: minimum charge for depreciation; net earnings available for interest, depreciation and property retirement; net earnings of another corporation available for interest, depreciation and property retirement

  

20



 

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Page

 


SECTION 2.

  

Facsimile Signatures

  

20

SECTION 3.

  

Reservation of Right to Amend Article VII

  

21

SECTION 4.

  

Reservation of Right to Delete certain requirements and conditions

  

23

SECTION 5.

  

Issuance of Variable Rate Bonds

  

24

SECTION 6.

  

Substitution of bonds

  

24

SECTION 7.

  

Addition of a governing law clause

  

25

SECTION 8.

  

Event of default for failure to pay final judgments in excess of $100,000

  

25

SECTION 9.

  

Net earnings test in connection with property acquisitions

  

25

SECTION 10.

  

Addition of Nuclear Fuel

  

25

SECTION 11

  

Modernization of the Original Indenture

  

26

 

  

ARTICLE VI

  

 

 

  

Miscellaneous Provisions

  

 

SECTION 1.

  

Acceptance of Trust

  

27

SECTION 2.

  

Responsibility and Duty of Trustee

  

27

SECTION 3.

  

Parties to include successors and assigns

  

27

SECTION 4.

  

Benefits restricted to parties and to holders of Bonds and coupons

  

27

SECTION 5.

  

Execution in counterparts

  

27

SECTION 6.

  

Titles of Articles not part of the Thirty-Seventh Supplemental Indenture

  

27

TESTIMONIUM

  

S-1

SIGNATURES AND SEALS

  

S-1

ACKNOWLEDGMENTS

  

S-2



 

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APPENDIX A

 

 

     

 

  

Page

 


DESCRIPTION OF PROPERTIES

  

 



 

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THIRTY-SEVENTH SUPPLEMENTAL INDENTURE, dated as of the 17th day of June, Two Thousand and Four, made by and between Westar Energy, Inc., formerly The Kansas Power and Light Company, a corporation organized and existing under the laws of the State of Kansas (hereinafter called the " Company "), party of the first part, and BNY Midwest Trust Company, an Illinois trust company whose mailing address is 2 North LaSalle Street, Suite 1020, Chicago, IL 60602 (hereinafter called the " Trustee "), as Trustee (as successor to Harris Trust and Savings Bank), under the Mortgage and Deed of Trust dated July 1, 1939, hereinafter mentioned, party of the second part;

 

WHEREAS, the Company has heretofore executed and delivered to the Trustee its Mortgage and Deed of Trust dated July 1, 1939 (hereinafter referred to as the " Original Indenture "), to provide for and to secure the issue of First Mortgage Bonds of the Company, issuable in series, and to declare the terms and conditions upon which the Bonds (as defined in the Original Indenture) are to be issued thereunder; and

 

WHEREAS, the Company has heretofore executed and delivered to the Trustee Thirty-Six Supplemental Indentures supplemental to said Original Indenture, of which Thirty-Four provided for the issuance thereunder of series of the Company’s First Mortgage Bonds, and there is set forth below information with respect to such Supplemental Indentures as have provided for the issuance of Bonds, and the principal amount of Bonds which remain outstanding as of June 17, 2004.

 

 

                   

Supplemental Indenture


  

Date

 


  

Series of First

Mortgage Bonds

Provided For

 


  

Principal

Amount

Issued

 


  

Principal

Amount

Outstanding

 


Supplemental Indenture

  

July 1, 1939

  

3  1 / 2 % Series

Due 1969

  

$

26,500,000

  

None

Second Supplemental Indenture

  

April 1, 1949

  

2  7 / 8 % Series

Due 1979

  

 

10,000,000

  

None

Fourth Supplemental Indenture

  

October 1, 1949

  

2  3 / 4 % Series

Due 1979

  

 

6,500,000

  

None

Fifth Supplemental Indenture

  

December 1, 1949

  

2  3 / 4 % Series

Due 1984

  

 

32,500,000

  

None

Seventh Supplemental Indenture

  

December 1, 1951

  

3  1 / 4 % Series

Due 1981

  

 

5,250,000

  

None

Eighth Supplemental Indenture

  

May 1, 1952

  

3  1 / 4 % Series

Due 1982

  

 

4,750,000

  

None

Ninth Supplemental Indenture

  

October 1, 1954

  

3  1 / 8 % Series

Due 1984

  

 

8,000,000

  

None

Tenth Supplemental Indenture

  

September 1, 1961

  

4  3 / 4 % Series

Due 1991

  

 

13,000,000

  

None

Eleventh Supplemental Indenture

  

April 1, 1969

  

7  5 / 8 % Series

Due 1999

  

 

19,000,000

  

None






 

                 

Supplemental Indenture


  

Date

 


  

Series of First

Mortgage Bonds

Provided For

 


  

Principal

Amount

Issued

 


  

Principal

Amount

Outstanding

 


Twelfth Supplemental Indenture

  

September 1, 1970

  

8  3 / 4 % Series

Due 2000

  

20,000,000

  

None

Thirteenth Supplemental Indenture

  

February 1, 1975

  

8  5 / 8 % Series

Due 2005

  

35,000,000

  

None

Fourteenth Supplemental Indenture

  

May 1, 1976

  

8  5 / 8 % Series

Due 2006

  

45,000,000

  

None

Fifteenth Supplemental Indenture

  

April 1, 1977

  

5.90% Pollution

Control Series

Due 2007

  

32,000,000

  

None

Sixteenth Supplemental Indenture

  

June 1, 1977

  

8  1 / 8 % Series

Due 2007

  

30,000,000

  

None

Seventeenth Supplemental Indenture

  

February 1, 1978

  

8  3 / 4 % Series

Due 2008

  

35,000,000

  

None

Eighteenth Supplemental Indenture

  

January 1, 1979

  

6  3 / 4 % Pollution

Control Series

Due 2009

  

45,000,000

  

None

Nineteenth Supplemental Indenture

  

May 1, 1980

  

8  1 / 4 % Pollution

Control Series

Due 1983

  

45,000,000

  

None

Twentieth Supplemental Indenture

  

November 1, 1981

  

16.95% Series

Due 1988

  

25,000,000

  

None

Twenty-First Supplemental Indenture

  

April 1, 1982

  

15% Series

Due 1992

  

60,000,000

  

None

Twenty-Second Supplemental Indenture

  

February 1, 1983

  

9  5 / 8 % Pollution

Control Series

Due 2013

  

58,500,000

  

None

Twenty-Third Supplemental Indenture

  

July 1, 1986

  

8  1 / 4 % Series

Due 1996

  

60,000,000

  

None

Twenty-Fourth Supplemental Indenture

  

March 1, 1987

  

8  5 / 8 % Series

Due 2017

  

50,000,000

  

None

Twenty-Fifth Supplemental Indenture

  

October 15, 1988

  

9.35% Series

Due 1998

  

75,000,000

  

None

Twenty-Sixth Supplemental Indenture

  

February 15, 1990

  

8  7 / 8 % Series

Due 2000

  

75,000,000

  

None

Twenty-Seventh Supplemental Indenture

  

March 12, 1992

  

7.46% Demand

Series

  

370,000,000

  

None

Twenty-Eighth Supplemental Indenture

  

July 1, 1992

  

7  1 / 4 % Series

Due 1999

8  1 / 2 % Series

Due 2022

  

125,000,000

 

125,000,000

  

None

 

None*



 

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Supplemental Indenture


  

Date

 


  

Series of First

Mortgage Bonds

Provided For

 


  

Principal

Amount

Issued

 


  

Principal

Amount

Outstanding

 


Twenty-Ninth Supplemental Indenture

  

August 20, 1992

  

7  1 / 4 % Series

Due 2002

  

100,000,000

  

None

Thirtieth Supplemental Indenture

  

February 1, 1993

  

6% Pollution

Control Revenue

Refunding Series

Due 2033

  

58,500,000

  

None

Thirty-First Supplemental Indenture

  

April 15, 1993

  

7.65% Series

Due 2023

  

100,000,000

  

None*

Thirty-Second Supplemental Indenture

  

April 15, 1994

  

7  1 / 2 % Series

Pollution Control

Revenue Refunding

Series Due 2032

  

75,500,000

  

75,500,000

Thirty-Third Supplemental Indenture

  

August 11, 1997

  

6  7 / 8 % Convertible

Series Due 2004

7  1 / 8 % Convertible

Series Due 2009

  

370,000,000

 

150,000,000

  

None

 

None

Thirty-Fourth Supplemental Indenture

  

June 28, 2000

  

9  1 / 2 % Series

Due 2003

  

397,800,000

  

None

Thirty-Fifth Supplemental Indenture

  

May 10, 2002

  

7  7 / 8 % Series

Due 2007

  

365,000,000

  

365,000,000

Thirty-Sixth Supplemental Indenture

  

June 1, 2004

  

5.00% Series

Due 2033

  

58,340,000

  

58,340,000






*

Upon issuance of the Bonds of the 2014 Series pursuant to this indenture, the 8  1 / 2 % Series due 2022 and the 7.65% Series due 2023 will be redeemed and will no longer be outstanding under this indenture.

 

; and

 

WHEREAS, the Company is entitled at this time to have authenticated and delivered additional bonds in substitution for refundable Bonds, upon compliance with the provisions of Article III of the Original Indenture, as amended; and

 

-3-




WHEREAS, the Company desires by this Thirty-Seventh Supplemental Indenture (hereinafter referred to as this " Supplemental Indenture ") to supplement the Original Indenture and to provide for the creation of a new series of bonds under the Original Indenture to be designated "First Mortgage Bonds, 6.00% Series Due 2014" (hereinafter called " Bonds of the 2014 Series "); and the Original Indenture provides that certain terms and provisions, as determined by the Board of Directors of the Company, of the Bonds of any particular series may be expressed in and provided by the execution of an appropriate supplemental indenture; and

 

WHEREAS, the Company in the exercise of the powers and authority conferred upon and reserved to it under the provisions of the Original Indenture and indentures supplemental thereto, and pursuant to appropriate resolutions of its Board of Directors, has duly resolved and determined to make, execute and deliver to the Trustee a supplemental indenture in the form hereof for the purposes herein provided; and

 

WHEREAS, all conditions and requirements necessary to make this Supplemental Indenture a valid, binding and legal instrument have been done, performed and fulfilled, and the execution and delivery hereof have been in all respects duly authorized;

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH: That, in consideration of the premises and of the mutual covenants herein contained and of the sum of One Dollar duly paid by the Trustee to the Company at or before the time of the execution of these presents, and of other valuable considerations, the receipt whereof is hereby acknowledged, and in order further to secure the payment of the principal of and interest and premium, if any, on all Bonds at any time issued and outstanding under the Original Indenture as amended by all indentures supplemental thereto (hereinafter sometimes collectively called the " Indenture ") according to their tenor, purport and effect, and to declare certain terms and conditions upon and subject to which Bonds are to be issued and secured, the Company has executed and delivered this Supplemental Indenture, and by these presents grants, bargains, sells, warrants, aliens, releases, conveys, assigns, transfers, mortgages, pledges, sets over and ratifies and confirms unto BNY Midwest Trust Company, as Trustee, and to its successors in trust under the Indenture forever, all and singular the following described properties (in addition to all other properties heretofore specifically subjected to the lien of the Indenture and not heretofore released from the lien thereof), that is to say:

 

FIRST.

 

All and singular the rents, real estate, chattels real, easements, servitudes, and leaseholds of the Company, or which, subject to the provisions of Article XII of the Original Indenture, the Company may hereafter acquire, including, among other things, the property described in Appendix A hereto under the caption "First", which description is hereby incorporated herein by reference and made a part hereof as if fully set forth herein, together with all improvements of any type located thereon.

 

Also all power houses, plants, buildings and other structures, dams, dam sites, substations, heating plants, gas works, holders and tanks, compressor stations, gasoline extraction plants, together with all and singular the electric heating, gas and mechanical appliances appurtenant thereto

 

-4-




of every nature whatsoever, now owned by the Company or which it may hereafter acquire, including all and singular the machinery, engines, boilers, furnaces, generators, dynamos, turbines and motors, and all and every character of mechanical appliance for generating or producing electricity, steam, water, gas and other agencies for light, heat, cold or power or any other purpose whatsoever.

 

SECOND.

 

Also all transmission and distribution systems used for the transmission and distribution of electricity, steam, water, gas and other agencies for light, heat, cold or power, or any other purpose whatever, whether underground or overhead or on the surface or otherwise of the Company, or which, subject to the provisions of Article XII of the Original Indenture, the Company may hereafter acquire, including all poles, posts, wires, cables, conduits, mains, pipes, tubes, drains, furnaces, switchboards, transformers, insulators, meters, lamps, fuses, junction boxes, water pumping stations, regulator stations, town border metering stations and other electric, steam, water and gas fixtures and apparatus.

 

THIRD.

 

Also all franchises and all permits, ordinances, easements, privileges and immunities and licenses, all rights to construct, maintain and operate overhead, surface and underground systems for the distribution and transmission of electricity, gas, water or steam for the supply to itself or others of light, heat, cold or power or any other purpose whatsoever, all rights-of-way, all waters, water rights and flowage rights and all grants and consents, now owned by the Company or, subject to the provisions of Article XII of the Original Indenture, which it may hereafter acquire.

 

Also all inventions, patent rights and licenses of every kind now owned by the Company or, subject to the provisions of Article XII of the Original Indenture, which it may hereafter acquire.

 

FOURTH.

 

Also, subject to the provisions of Article XII of the Original Indenture, all other property, real, personal and mixed (except as therein or herein expressly excepted) of every nature and kind and wheresoever situated now or hereafter possessed by or belonging to the Company, or to which it is now, or may at any time hereafter be, in any manner entitled at law or in equity.

 

FIFTH.

 

Also any and all property of any kind or description which may from time to time after the date of the Original Indenture by delivery or by writing of any kind be conveyed, mortgaged, pledged, assigned or transferred to the Trustee by the Company or by any person, copartnership or corporation, with the consent of the Company or otherwise, and accepted by the Trustee, to be held as part of the mortgaged property; and the Trustee is hereby authorized to accept and receive any such property and any such conveyance, mortgage, pledge, assignment and transfer, as and for additional security hereunder, and to hold and apply any and all such property subject to and in accordance with the terms and provisions upon which such conveyance, mortgage, pledge, assignment or transfer shall be made.

 

-5-




SIXTH.

 

Together with all and singular, the tenements, hereditaments and appurtenances belonging or in any wise appertaining to the aforesaid property or any part thereof, with the reversion and reversions, remainder and remainders, tolls, rents, revenues, issues, income, products and profits thereof, and all the estate, right, title, interest and claim whatsoever, at law and in equity, which the Company now has or may hereafter acquire in and to the aforesaid property and franchises and every part and parcel thereof.

 

EXPRESSLY EXCEPTING AND EXCLUDING, HOWEVER, all properties of the character excepted from the lien of the Original Indenture.

 

TO HAVE AND TO HOLD all said properties, real, personal and mixed, mortgaged, pledged and conveyed by the Company as aforesaid, or intended so to be, unto the Trustee and its successors and assigns forever;

 

SUBJECT, HOWEVER, to the exceptions and reservations hereinabove referred to, to existing leases other than leases which by their terms are subordinate to the lien of the Indenture, to existing liens upon rights-of-way for transmission or distribution line purposes, as defined in Article I of the Original Indenture; and any extensions thereof, and subject to existing easements for streets, alleys, highways, rights-of-way and railroad purposes over, upon and across certain of the property herein before described and subject also to all the terms, conditions, agreements, covenants, exceptions and reservations expressed or provided in the deeds or other instruments respectively under and by virtue of which the Company acquired the properties hereinabove described and to undetermined liens and charges, if any, incidental to construction or other existing permitted liens as defined in Article I of the Original Indenture;

 

IN TRUST, NEVERTHELESS, upon the terms and trusts in the Original Indenture, and the indentures supplemental thereto, including this Supplemental Indenture, set forth, for the equal and proportionate benefit and security of all present and future holders of the Bonds and coupons issued and to be issued thereunder, or any of them, without preference of any of said Bonds and coupons of any particular series over the Bonds and coupons of any other series by reason of priority in the time of issue, sale or negotiation thereof, or by reason of the purpose of issue or otherwise howsoever, except as otherwise provided in Section 2 of Article IV of the Original Indenture.

 

-6-




AND IT IS HEREBY COVENANTED, DECLARED AND AGREED, by and between the parties hereto for the benefit of those who shall hold the Bonds and coupons, or any of them, to the be issued under the Indenture as follows:

 

ARTICLE I

 

DESCRIPTION OF BONDS OF THE

2014 SERIES

 

SECTION 1. The Bonds of the 2014 Series to be executed, authenticated and delivered under and secured by the Original Indenture shall be designated as "First Mortgage Bonds, 6.00% Series Due 2014" of the Company. The Bonds of the 2014 Series shall be executed, authenticated and delivered in accordance with the provisions of, and shall in all respects be subject to, all of the terms, conditions and covenants of the Indenture and subject to all the terms, conditions and covenants of this Supplemental Indenture.

 

Bonds of the 2014 Series shall mature July 1, 2014 and shall bear interest at the rate of six percent (6.00%) per annum payable semi-annually on the first day of January and July in each year, commencing January 1, 2005. Every Bond of the 2014 Series shall be dated the date of authentication except that, notwithstanding the provisions of Section 6 of Article II of the Original Indenture, if any Bond of the 2014 Series shall be authenticated at any time subsequent to the record date (as hereinafter in this Section defined) for any interest payment date but prior to the day following such interest payment date, it shall be dated as of the day following such interest payment date, provided, however, if at the time of authentication of any Bond of the 2014 Series interest shall be in default on any Bonds of the 2014 Series, such Bond shall be dated as of the day following the interest payment date to which interest has previously been paid in full or made available for payment in full on outstanding Bonds of the 2014 Series, as the case may be, or, if no interest has been paid or made available for payment, as of the date of initial authentication and delivery of such Bond. Every Bond of the 2014 Series shall bear interest from the January 1, or July 1, next preceding the date thereof, unless such Bond shall be dated prior to January 1, 2005, in which case it shall bear interest from June 17, 2004.

 

The person in whose name any Bond of the 2014 Series is registered at the close of business on any record date with regard to any interest payment date shall be entitled to receive the interest payable thereon on such interest payment date notwithstanding the cancellation of such Bond upon the transfer or exchange thereof subsequent to such record date and prior to the day following such interest payment date, unless the Company shall default in the payment of the interest due on such interest payment date, in which case such defaulted interest shall be paid to the person in whose name such Bond is registered on the date of payment of such defaulted interest. The term " record date " as used in this Section with regard to any January 1 interest payment date shall mean the close of business on the next preceding December 15 and with regard to any July 1 interest payment date shall mean the close of business on the next preceding June 15, or if such day is not a business day, the business day next preceding such day. The Bonds of the 2014 Series shall be payable as to principal, premium, if any, and interest, in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts, at the agency of the Company in the City of Chicago, Illinois, or at the option of the holder thereof at the agency of the Company in the Borough of Manhattan, The City of New York, provided that at the option of the Company interest may be paid by check mailed to the holder at such holder’s registered address.

 

-7-




SECTION 2. The Bonds of the 2014 Series shall be registered bonds without coupons of the denominations of $1,000 and of any multiples of $1,000, numbered consecutively from R-1. Bonds of the 2014 Series may each be interchanged for other bonds within the same Series in authorized denominations and in the same aggregate principal amounts, without charge, except for any tax or governmental charge imposed in connection with such interchange.

 

SECTION 3. The Bonds of the 2014 Series, and the Trustee’s Certificate with respect thereto, shall be substantially in the following forms, respectively:

 

-8-




[FORM OF LEGEND FOR GLOBAL SECURITY]

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT HEREON IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN

 

[FORM OF BOND OF THE 2014 SERIES]

 

CUSIP             

 

WESTAR ENERGY, INC.

 

(Incorporated under the laws of the State of Kansas)

 

FIRST MORTGAGE BOND, 6.00% SERIES DUE 2014

 

DUE July 1, 2014

 

 

     

No.             

 

$                     



 

WESTAR ENERGY, INC., a corporation organized and existing under the laws of the State of Kansas (hereinafter called the " Company ", which term shall include any successor corporation as defined in the Indenture hereinafter referred to), for value received, hereby promises to pay to                      or registered assigns, on the 1st day of July, 2014, the sum of                      Dollars in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts, and to pay interest thereon in like coin or currency from the first day of January or July next preceding the date of this Bond (the " Bonds ") unless this Bond shall be dated prior to

 

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January 1, 2005, in which case from June 17, 2004, at the rate of six percent (6.00%) per annum, payable semiannually, on the first days of January and July in each year, commencing January 1, 2005, until maturity, or, if this Bond shall be duly called for redemption or submitted for repurchase, until the redemption date or repurchase date, as the case may be, or, if the Company shall default in the payment of the principal or premium hereof, until the Company’s obligation with respect to the payment of such principal or premium shall be discharged as provided in the Indenture hereinafter mentioned. The interest payable on any January 1 interest payment date as aforesaid will be paid to the person in whose name this Bond is registered at the close of business on the next preceding December 15 and with respect to any July 1 interest payment date shall mean the close of business on the next preceding June 15, or if such day is not a business day, the business day next preceding such day (the " record date "), unless the Company shall default in the payment of the interest due on such interest payment date, in which case such defaulted interest shall be paid to the person in whose name this Bond is registered on the date of payment of such defaulted interest. Principal of, premium, if any, and interest on, this Bond are payable at the agency of the Company in the City of Chicago, Illinois in immediately available funds, or at the option of the holder thereof at the agency of the Company in the Borough of Manhattan, The City of New York, provided that at the option of the Company interest may be paid by check mailed to the holder at such holder’s registered address.

 

This Bond is one of a duly authorized issue of Bonds of the Company (herein called the " Bonds "), in unlimited aggregate principal amount, of the series hereinafter specified, all issued and to be issued under and equally secured by a Mortgage and Deed of Trust, dated July 1, 1939, executed by the Company to BNY Midwest Trust Company (herein called the " Trustee "), as Trustee (as successor to Harris Trust and Savings Bank), as amended by the indentures supplemental thereto including the thirty-seventh indenture supplemental thereto dated as of June 17, 2004 (herein called the " Supplemental Indenture "), between the Company and the Trustee (said Mortgage and Deed of Trust, as so amended, being herein called the " Indenture "), to which Indenture and all indentures supplemental thereto reference is hereby made for a description of the properties mortgaged and pledged, the nature and extent of the security, the rights of the bearers or registered owners of the Bonds and of the Trustee in respect thereto, and the terms and conditions upon which the Bonds are, and are to be, secured. The Bonds may be issued in series, for various principal sums, may mature at different times, may bear interest at different rates and may otherwise vary as in the Indenture provided. This Bond is one of a series designated as the "First Mortgage Bonds, 6.00% Series Due 2014" (herein called " Bonds of the 2014 Series ") of the Company, issued under and secured by the Indenture executed by the Company to the Trustee.

 

To the extent permitted by, and as provided in the Indenture, modifications or alterations of the Indenture or of any indenture supplemental thereto, and of the rights and obligations of the Company and of the holders of the Bonds and coupons, may be made with the consent of the Company by an affirmative vote of not less than 60% in principal amount of the Bonds entitled to vote then outstanding, at a meeting of Bondholders called and held as provided in the Indenture, and by an affirmative vote of not less than 60% in principal amount of the Bonds of any series entitled to vote then outstanding and affected by such modification or alteration, in case one or more but less than all of the series of Bonds then outstanding under the Indenture are so affected. No modification or alteration shall be made which will affect the terms of payment of the principal of or premium, if

 

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any, or interest on, this Bond, which are unconditional. The Company has reserved the right to make certain amendments to the Indenture, without any consent or other action by holders of the Bonds of this series (i) to the extent necessary from time to time to qualify the Indenture under the Trust Indenture Act of 1939, (ii) to delete the requirement that the Company meet a net earnings test as a condition to authenticating additional Bonds or merging into another company, (iii) to make certain other amendments which make the provisions for the release of mortgaged property less restrictive and (iv) to make certain other amendments, all as more fully provided in the Indenture and in the Supplemental Indenture. In addition, once all Bonds issued prior to January 1, 1997 are no longer outstanding, the Company will be permitted to issue additional Bonds in an amount equal to 70% of the value of net bondable property additions not subject to an unfunded prior lien, as provided in the Original Indenture.

 

This Bond is subject to redemption at any time and from time to time prior to maturity at the option of the Company at a price determined as provided in the Supplemental Indenture. Such redemption in every case shall be effected upon notice given by: (1) first class mail, postage prepaid, at least thirty days and not more than si


 
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