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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
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Page
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Parties
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1
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Recitals
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1
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Granting Clause
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4
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Habendum
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6
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Exceptions and Reservations
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6
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ARTICLE I
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Description of Bonds of
the
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2014 Series
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SECTION 1.
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General Description of Bonds of the 2014
Series
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7
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SECTION 2.
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Denominations of Bonds of the 2014 Series and
privilege of exchange
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8
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SECTION 3.
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Form of Bonds of the 2014 Series
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8
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SECTION 4.
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Execution and Form of Temporary Bonds of the 2014
Series
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13
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ARTICLE II
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Issue of Bonds of the 2014
Series
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SECTION 1.
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Limitations as to Principal Amount
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13
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SECTION 2.
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Execution and Delivery of Bonds of the 2014
Series
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13
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a
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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.
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-ii-
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Page
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ARTICLE III
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Redemption and
Substitution
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SECTION 1.
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Optional Redemption
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13
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SECTION 2
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Substitution of Bonds of the 2014
Series
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15
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ARTICLE IV
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Additional
Covenants
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SECTION 1.
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Title to mortgaged property
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16
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SECTION 2.
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To retire certain portions of Bonds upon release
of all or substantially all of the electric properties
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16
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ARTICLE V
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AMENDMENTS AND RESERVATIONS OF
RIGHTS TO AMEND THE ORIGINAL INDENTURE
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SECTION 1.
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So long as bonds issued prior to January 1, 1997
remain outstanding:
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Bonds issuable on basis only of 60% of net
bondable value of property additions not subject to an unfunded
prior lien
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17
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Amendment of definition of net bondable value of
property additions not subject to an unfunded prior lien
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17
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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
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17
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Amendment of definition of net bondable value of
property additions subject to an unfunded prior lien
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18
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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
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18
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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
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20
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-iii-
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Page
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SECTION 2.
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Facsimile Signatures
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20
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SECTION 3.
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Reservation of Right to Amend Article
VII
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21
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SECTION 4.
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Reservation of Right to Delete certain
requirements and conditions
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23
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SECTION 5.
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Issuance of Variable Rate Bonds
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24
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SECTION 6.
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Substitution of bonds
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24
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SECTION 7.
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Addition of a governing law clause
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25
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SECTION 8.
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Event of default for failure to pay final
judgments in excess of $100,000
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25
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SECTION 9.
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Net earnings test in connection with property
acquisitions
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25
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SECTION 10.
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Addition of Nuclear Fuel
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25
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SECTION 11
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Modernization of the Original
Indenture
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26
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ARTICLE VI
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Miscellaneous
Provisions
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SECTION 1.
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Acceptance of Trust
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27
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SECTION 2.
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Responsibility and Duty of Trustee
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27
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SECTION 3.
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Parties to include successors and
assigns
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27
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SECTION 4.
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Benefits restricted to parties and to holders of
Bonds and coupons
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27
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SECTION 5.
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Execution in counterparts
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27
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SECTION 6.
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Titles of Articles not part of the Thirty-Seventh
Supplemental Indenture
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27
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TESTIMONIUM
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S-1
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SIGNATURES AND SEALS
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S-1
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ACKNOWLEDGMENTS
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S-2
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-iv-
APPENDIX A
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Page
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DESCRIPTION OF PROPERTIES
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-v-
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.
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Supplemental Indenture
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Date
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Series of First
Mortgage Bonds
Provided For
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Principal
Amount
Issued
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Principal
Amount
Outstanding
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Supplemental Indenture
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July 1, 1939
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3 1
/ 2 % Series
Due 1969
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$
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26,500,000
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None
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Second Supplemental Indenture
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April 1, 1949
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2 7
/ 8 % Series
Due 1979
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10,000,000
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None
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Fourth Supplemental Indenture
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October 1, 1949
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2 3
/ 4 %
Series
Due 1979
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6,500,000
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None
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Fifth Supplemental Indenture
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December 1, 1949
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2 3
/ 4 %
Series
Due 1984
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32,500,000
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None
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Seventh Supplemental Indenture
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December 1, 1951
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3 1
/ 4 %
Series
Due 1981
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5,250,000
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None
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Eighth Supplemental Indenture
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May 1, 1952
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3 1
/ 4 %
Series
Due 1982
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4,750,000
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None
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Ninth Supplemental Indenture
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October 1, 1954
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3 1
/ 8 %
Series
Due 1984
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8,000,000
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None
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Tenth Supplemental Indenture
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September 1, 1961
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4 3
/ 4 %
Series
Due 1991
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13,000,000
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None
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Eleventh Supplemental Indenture
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April 1, 1969
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7 5
/ 8 % Series
Due 1999
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19,000,000
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None
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Supplemental Indenture
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Date
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Series of First
Mortgage Bonds
Provided For
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Principal
Amount
Issued
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Principal
Amount
Outstanding
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Twelfth Supplemental Indenture
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September 1, 1970
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8 3
/ 4 %
Series
Due 2000
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20,000,000
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None
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Thirteenth Supplemental Indenture
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February 1, 1975
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8 5
/ 8 %
Series
Due 2005
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35,000,000
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None
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Fourteenth Supplemental Indenture
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May 1, 1976
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8 5
/ 8 %
Series
Due 2006
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45,000,000
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None
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Fifteenth Supplemental Indenture
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April 1, 1977
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5.90% Pollution
Control Series
Due 2007
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32,000,000
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None
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Sixteenth Supplemental Indenture
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June 1, 1977
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8 1
/ 8 %
Series
Due 2007
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30,000,000
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None
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Seventeenth Supplemental Indenture
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February 1, 1978
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8 3
/ 4 %
Series
Due 2008
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35,000,000
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None
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Eighteenth Supplemental Indenture
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January 1, 1979
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6 3
/ 4 %
Pollution
Control Series
Due 2009
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45,000,000
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None
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Nineteenth Supplemental Indenture
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May 1, 1980
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8 1
/ 4 %
Pollution
Control Series
Due 1983
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45,000,000
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None
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Twentieth Supplemental Indenture
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November 1, 1981
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16.95% Series
Due 1988
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25,000,000
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None
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Twenty-First Supplemental Indenture
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April 1, 1982
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15% Series
Due 1992
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60,000,000
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None
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Twenty-Second Supplemental Indenture
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February 1, 1983
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9 5
/ 8 % Pollution
Control Series
Due 2013
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58,500,000
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None
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Twenty-Third Supplemental Indenture
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July 1, 1986
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8 1
/ 4 %
Series
Due 1996
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60,000,000
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None
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Twenty-Fourth Supplemental Indenture
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March 1, 1987
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8 5
/ 8 %
Series
Due 2017
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50,000,000
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None
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Twenty-Fifth Supplemental Indenture
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October 15, 1988
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9.35% Series
Due 1998
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75,000,000
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None
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Twenty-Sixth Supplemental Indenture
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February 15, 1990
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8 7
/ 8 %
Series
Due 2000
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75,000,000
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None
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Twenty-Seventh Supplemental Indenture
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March 12, 1992
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7.46% Demand
Series
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370,000,000
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None
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Twenty-Eighth Supplemental Indenture
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July 1, 1992
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7 1
/ 4 % Series
Due 1999
8 1 / 2 % Series
Due 2022
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125,000,000
125,000,000
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None
None*
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-2-
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Supplemental Indenture
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Date
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Series of First
Mortgage Bonds
Provided For
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Principal
Amount
Issued
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Principal
Amount
Outstanding
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Twenty-Ninth Supplemental Indenture
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August 20, 1992
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7 1
/ 4 %
Series
Due 2002
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100,000,000
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None
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Thirtieth Supplemental Indenture
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February 1, 1993
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6% Pollution
Control Revenue
Refunding Series
Due 2033
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58,500,000
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None
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Thirty-First Supplemental Indenture
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April 15, 1993
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7.65% Series
Due 2023
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100,000,000
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None*
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Thirty-Second Supplemental Indenture
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April 15, 1994
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7 1
/ 2 %
Series
Pollution Control
Revenue Refunding
Series Due 2032
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75,500,000
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75,500,000
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Thirty-Third Supplemental Indenture
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August 11, 1997
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6 7
/ 8 %
Convertible
Series Due 2004
7 1 / 8 %
Convertible
Series Due 2009
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370,000,000
150,000,000
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None
None
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Thirty-Fourth Supplemental Indenture
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June 28, 2000
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9 1
/ 2 % Series
Due 2003
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397,800,000
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None
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Thirty-Fifth Supplemental Indenture
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May 10, 2002
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7 7
/ 8 %
Series
Due 2007
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365,000,000
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365,000,000
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Thirty-Sixth Supplemental Indenture
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June 1, 2004
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5.00% Series
Due 2033
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58,340,000
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58,340,000
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*
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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.
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; 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.
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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.
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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:
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[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
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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