|
Exhibit 4.1
WESTAR ENERGY,
INC.
TO
BNY MIDWEST TRUST
COMPANY
as Trustee
(as Successor
to
HARRIS TRUST AND SAVINGS
BANK)
THIRTY-SIXTH SUPPLEMENTAL
INDENTURE
Dated as of June 1,
2004
First Mortgage Bonds,
Pollution Control Refunding Revenue Series Due 2033
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 2033
Series |
|
|
|
|
SECTION 1.
|
|
General
Description of Bonds of the 2033 Series |
|
7 |
|
|
|
|
SECTION 2.
|
|
Denominations of Bonds of the 2033 Series and privilege of
exchange |
|
8 |
|
|
|
|
SECTION 3.
|
|
Form of
Bonds of the 2033 Series |
|
9 |
|
|
|
|
SECTION 4.
|
|
Execution
and Form of Temporary Bonds of the 2033 Series |
|
14 |
|
| ARTICLE II |
|
| Issue of Bonds of the 2033
Series |
|
|
|
|
SECTION 1.
|
|
Limitations as to Principal Amount |
|
14 |
|
|
|
|
SECTION 2.
|
|
Execution
and Delivery of Bonds of the 2033 Series |
|
14 |
|
| ARTICLE III |
|
| Redemption and
Substitution |
|
|
|
|
SECTION 1.
|
|
Redemption of Bonds of the 2033 Series |
|
14 |
| 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. |
-i-
|
|
|
|
|
| SECTION 2. |
|
Redemption of Bonds of the 2033 Series by Special Holder
Redemption |
|
15 |
|
|
|
| SECTION
3. |
|
Redemption of Bonds of the 2033 Series upon application of
certain moneys included in trust estate |
|
15 |
|
|
|
| SECTION
4. |
|
Redeemed
Bonds treated as refundable bonds |
|
15 |
|
|
|
| SECTION
5. |
|
Written
Notice to the Trustee |
|
15 |
|
|
|
| SECTION
6. |
|
Substitution of the Bonds of the 2033 Series |
|
15 |
|
|
|
| SECTION
7. |
|
Limitation on redemption of Bonds of the 2033
Series |
|
16 |
|
| 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
|
|
17 |
|
| ARTICLE V |
|
| Amendments and Reservation of Rights
to Amend the Original Indenture |
|
|
|
|
SECTION 1.
|
|
So long as Bonds of the 2032 Series
remain outstanding:
|
|
17 |
|
|
|
| |
|
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
|
|
18 |
|
|
|
| |
|
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
|
|
18 |
|
|
|
| |
|
Amendment of definition of net bondable
value of property additions subject to an unfunded prior
lien
|
|
18 |
-ii-
|
|
|
|
|
| |
|
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 |
|
|
|
| |
|
Amendment
of Articles III, IV and XII of the Original Indenture |
|
18 |
|
|
|
| |
|
Definitions: minimum charge for
depreciation; net earnings available for interset, depreciation and
property retirement: net earnings of another corporation available
for interest, depreciation and property retirement
|
|
18 |
|
|
|
|
SECTION 2.
|
|
Facsimile
Signatures |
|
21 |
|
|
|
|
SECTION 3.
|
|
Reservation of Right to Amend Article VII |
|
21 |
|
|
|
|
SECTION 4.
|
|
Reservation of Right to Delete certain requirements and
conditions |
|
24 |
|
|
|
|
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 |
|
26 |
|
|
|
|
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 |
|
28 |
|
|
|
|
SECTION 5.
|
|
Execution
in counterparts |
|
28 |
|
|
|
|
SECTION 6.
|
|
Titles of
Articles not part of the Thirty-Sixth Supplemental
Indenture |
|
28 |
-iii-
|
|
|
| |
|
Page
|
|
TESTIMONIUM
|
|
S-1 |
|
|
|
SIGNATURES AND SEALS
|
|
S-1 |
|
|
|
ACKNOWLEDGMENTS
|
|
S-2 |
|
|
| APPENDIX A |
|
|
|
|
|
DESCRIPTION OF PROPERTIES
|
|
|
-iv-
THIRTY-SIXTH SUPPLEMENTAL
INDENTURE, dated as of the 1st 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-Five
Supplemental Indentures supplemental to said Original Indenture, of
which Thirty-Three 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 1, 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 |
|
125,000,000 |
|
None |
-2-
|
|
|
|
|
|
|
|
|
|
Supplemental Indenture
|
|
Date
|
|
Series of First
Mortgage Bonds Provided
For
|
|
Principal
Amount
Issued
|
|
Principal
Amount
Outstanding
|
| |
|
|
|
8
1 /
2 % Series Due 2022 |
|
125,000,000 |
|
125,000,000 |
|
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 |
|
100,000,000 |
|
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 |
|
370,000,000 |
|
None |
| |
|
|
|
7
1 /
8 % Convertible Series Due 2009 |
|
150,000,000 |
|
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 |
| * |
Upon issuance of the Bonds of the 2033 Series pursuant to this
indenture, the 6% Pollution Control Revenue Refunding Series due
2033 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
WHEREAS, the Company desires
by this Thirty-Sixth 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, Pollution Control Refunding
Revenue Series Due 2033”(hereinafter called
“Bonds
-3-
of the 2033 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 Thirty-Sixth 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 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.
-4-
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
2033 SERIES
SECTION 1. The 2033 series of
Bonds to be executed, authenticated and delivered under and secured
by the Original Indenture shall be designated as “First
Mortgage Bonds, Pollution Control Refunding Revenue Series Due
2033” of the Company (herein called “ Bonds of the
2033 Series ”). The Bonds of the 2033 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 Original Indenture, as
amended, and subject to all the terms, conditions and covenants of
this Supplemental Indenture.
Bonds of the 2033 Series
shall mature February 1, 2033 and shall bear from time to time
interest at a rate equal to the interest rate then borne by the
City of Wamego, Kansas, Pollution Control Refunding Revenue Bonds
(Westar Energy, Inc. Project) Series 2004 (hereinafter referred to
as “Revenue Bonds”), issued pursuant to the Indenture
of Trust, dated as of June 1, 2004 (hereinafter referred to as the
“Revenue Bond Indenture”), from the City of Wamego,
Kansas, to Deutsche Bank Trust Company Americas, as trustee
thereunder (the “Revenue Bond Trustee”) which rate
shall initially be five percent (5.00%) per annum, payable at the
same times as interest is payable on the Revenue Bonds, initially
semi-annually on the first day of February and August in each year,
commencing February 1, 2005. Every Bond of the 2033 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 2033 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 2033 Series
interest shall be in default on any Bonds of the 2033 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 2033
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 2033
Series shall bear interest from the February 1, or August 1, next
preceding the date thereof, unless such Bond shall be dated prior
to February 1, 2005, in which case it shall bear interest from June
1, 2004; provided, that if interest is no longer payable on
February 1 and August 1 then from the interest payment date next
preceding the date thereof.
The person in whose name any
Bond of the 2033 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 shall mean the
close of business on the record date for the Revenue Bonds
pursuant
-7-
to the Revenue Bond Indenture. The Bonds
of the 2033 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.
The obligation of the Company
to make payments with respect to the principal of and premium, if
any, and interest on Bonds of the 2033 Series shall be fully or
partially, as the case may be, satisfied and discharged (1) to the
extent that the then due payments with respect to the principal and
premium, if any, and interest on the Revenue Bonds (other than
Revenue Bonds which have been redeemed or called for redemption, or
which have been surrendered in lieu of, in substitution for or in
exchange for other Revenue Bonds or surrendered upon registration
of transfer of Revenue Bonds to the Revenue Bond Indenture) shall
have been fully or partially satisfied and discharged, and (2) to
the extent that at the time any payment of principal or premium, if
any, or interest on the Revenue Bond becomes due, either at or
before maturity, there shall be in the Bond Fund established
pursuant to the Revenue Bond Indenture sufficient cash (whether
received by the Revenue Bond Trustee under the Sublease dated as of
June 1, 2004, (the “Sublease”), between the City of
Wamego, Kansas, and the Company, or otherwise) available to pay the
principal of and premium, if any, and interest on the Revenue Bonds
then due. The obligation of the Company to make payments with
respect to the principal of and premium, if any, and interest on
the Bonds of the 2033 Series shall also be satisfied and discharged
at such time pursuant to the provisions of Article X of the Revenue
Bond Indenture, the principal and premium, if any, and interest on
the Revenue Bonds has been paid or the Revenue Bond Trustee shall
hold moneys or Investment Obligations (meeting the requirements of
such Article X) sufficient to pay the principal of and premium, if
any, and interest on the Revenue Bonds and to the extent in such
Article X provided, and provision for paying all other sums
required by such Article X shall have been made. In this case, the
entire principal amount of the Bonds of the 2033 Series then
outstanding shall be deemed to be satisfied and discharged. Neither
the invalidity nor the unenforceability, in whole or in part, of
the Sublease or any provision thereof (whether by reason of
bankruptcy or otherwise) shall impair or limit the obligation of
the Company to pay the principal of and premium, if any, and
interest on the Bonds of the 2033 Series when and as they become
due and payable. The Trustee may conclusively presume that the
obligation of the Company to make payment with respect to the
principal of and premium, if any, and interest on the Bonds of the
2033 Series shall have been satisfied and discharged unless and
until the Trustee shall have received a written notice from the
Revenue Bond Trustee stating (i) that timely payment of the
principal of or premium, if any, or interest on the Revenue Bonds
has not been made, (ii) that there are not sufficient available
funds in such Bond Fund to make such payment and (iii)the amount of
funds required to make such payment.
SECTION 2. The Bonds of the
2033 Series shall be registered bonds without coupons of the
denominations of $5,000 and of any multiples of $5,000, numbered
consecutively from R 1 upwards. Bonds of the 2033 Series may each
be interchanged for each other bonds within a respective 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.
-8-
SECTION 3. The Bonds of the
2033 Series, and the Trustee’s Certificate with respect
thereto, shall be substantially in the following forms,
respectively:
[FORM OF BOND OF THE 2033
SERIES]
CUSIP
WESTAR ENERGY,
INC.
(Incorporated under the laws
of the State of Kansas)
FIRST MORTGAGE BOND,
POLLUTION CONTROL REFUNDING REVENUE SERIES DUE 2033
DUE February 1,
2033
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 entity as defined in the
Indenture hereinafter referred to), for value received, hereby
promises to pay to
or registered assigns, on the 1st day of February, 2033, 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 February or August next preceding the date of this
Bond (or the interest payment date next preceding the date hereof,
if different from February 1 or August 1), unless no interest has
been paid on this Bond, in which case from June 1, 2004, at a rate
equal to the interest rate then borne by the City of Wamego,
Kansas, Pollution Control Refunding Revenue Bonds (Westar Energy,
Inc. Project) Series 2004 (hereinafter referred to as “
Revenue Bonds ”), issued pursuant to the Indenture of
Trust, dated as of June, 1 2004 (hereinafter referred to as the
“ Revenue Bond Indenture ”), from the City of
Wamego, Kansas, to Deutsche Bank Trust Company Americas, as trustee
thereunder (the “ Revenue Bond Trustee ”) which
rate shall initially be five percent (5.00%) per annum, payable
semiannually, on the first days of February and August in each
year, commencing February 1, 2005, or as otherwise provided in the
Indenture, 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
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
record date for the Revenue Bonds pursuant to the Revenue Bond
Indenture (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.
-9-
The obligation of the Company
to make payments with respect to the principal of and premium, if
any, and interest on Bonds of this Series shall be satisfied and
discharged (1) to the extent that the then due payments with
respect to the principal and premium, if any, and interest on the
Revenue Bonds (other than Revenue Bonds which have been redeemed or
called for redemption, or which have been surrendered in lieu of,
in substitution for or in exchange for other Revenue Bonds or
surrendered upon registration of transfer of Revenue Bonds to the
Revenue Bond Indenture), shall have been fully or partially
satisfied and discharged, and (2) to the extent that at the time
any payment of principal or premium, if any, or interest on the
Revenue Bond becomes due, either at or before maturity, there shall
be in the Bond Fund established pursuant to the Revenue Bond
Indenture sufficient cash (whether received by the Revenue Bond
Trustee under the Sublease dated as of June 1, 2004, (the
“Sublease”), between the City of Wamego, Kansas, and
the Company, or otherwise) available to pay the principal of and
premium, if any, and interest on the Revenue Bonds then due, and
(3) at such time pursuant to the provisions of Article X of the
Revenue Bond Indenture, the principal and premium, if any, and
interest on the Revenue Bonds has been paid or the Revenue Bond
Trustee shall hold moneys or Investment Obligations (meeting the
requirements of such Article X) sufficient to pay the principal of
and premium, if any, and interest on the Revenue Bonds and to the
extent in such Article X provided, and provision for paying all
other sums required by such Article X shall have been
made.
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-sixth
indenture supplemental thereto dated as of June 1, 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, Pollution Control Refunding
Revenue Series Due 2033” (herein called “ Bonds of
the 2033 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
-10-
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 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 and
(iii) to make certain other amendments which make the provisions
for the release of mortgaged property less restrictive, 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.
The Bonds of the 2033 Series
are subject to immediate redemption in whole, at the principal
amount thereof, but without premium, together with accrued interest
to the redemption date, upon receipt by the Trustee of a written
demand from the Revenue Bond Trustee stating that the principal
amount of all the Revenue Bonds then outstanding under the Revenue
Bond Indenture has been declared immediately due and payable
pursuant to Section 7.2 of the Revenue
|