Supplemental Indenture No. 10 TUCSON ELECTRIC POWER COMPANY to THE BANK OF NEW YORK MELLON, Trustee Dated as of March 1, 2010 Supplemental to Indenture of Mortgage and Deed of Trust, dated as of December 1, 1992 Creating A Series of Bonds Designated...
Exhibit 4(b)
Supplemental Indenture No. 10
TUCSON ELECTRIC POWER COMPANY
to
THE BANK OF NEW YORK MELLON,
Trustee
Dated as of March 1, 2010
Supplemental to Indenture of Mortgage and Deed of Trust,
dated as of December 1, 1992
dated as of December 1, 1992
Creating A Series of Bonds Designated
First Mortgage Bonds, Collateral Series H
First Mortgage Bonds, Collateral Series H
This instrument constitutes a mortgage, a deed of trust and a security agreement.
SUPPLEMENTAL INDENTURE NO. 10, dated as of March 1, 2010, between Tucson Electric Power
Company (hereinafter sometimes called the “Company”), a corporation organized and existing
under the laws of the State of Arizona, having its principal office at One South Church Avenue, in
the City of Tucson, Arizona, as trustor, and The Bank of New York Mellon, formerly known
as The Bank of New York (successor in trust to Bank of Montreal Trust Company), a banking
corporation organized and existing under the laws of the State of New York and having its principal
office at 000 Xxxxxxx Xxxxxx, in the Borough of Manhattan, The City of New York, New York, as
trustee (hereinafter sometimes called the “Trustee”), under the Indenture of Mortgage and Deed of
Trust, dated as of December 1, 1992, between the Company and the Trustee (hereinafter called the
“Original Indenture”), as heretofore amended and supplemented, this Supplemental Indenture No. 10
being supplemental thereto (the Original Indenture as heretofore amended and supplemented, and as
supplemented hereby, and as it may from time to time be further supplemented, modified, altered or
amended by any supplemental indenture entered into in accordance with and pursuant to the
provisions thereof, is hereinafter called the “Indenture”).
Recitals of the Company
WHEREAS, the Original Indenture was authorized, executed and delivered by the Company
to provide for the issuance from time to time of its Bonds (such term and all other capitalized
terms used herein without definition having the meanings assigned to them in the Original
Indenture), to be issued in one or more series as therein contemplated, and to provide security for
the payment of the principal of and premium, if any, and interest, if any, on the Bonds; and
WHEREAS, the Company proposes to establish a series of Bonds designated “First
Mortgage Bonds, Collateral Series H” and to be limited in aggregate principal amount (except as
contemplated in clause (b) of Section 2 of Article II of the Original Indenture) to $30,000,000,
such series of Bonds and such Bonds to be hereinafter sometimes called, respectively, “Series 9”
and “Series 9 Bonds”; and
WHEREAS, all acts and proceedings required by law and by the articles of
incorporation and by-laws of the Company, including all action requisite on the part of its
shareholders, directors and officers, necessary to make the Series 9 Bonds, when executed by the
Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal
obligations of the Company, and to constitute this Supplemental Indenture a valid, binding and
legal instrument, in accordance with its and their terms, have been done and taken; and the
execution and delivery of this Supplemental Indenture No. 10 have been in all respects duly
authorized;
WHEREAS, effective June 3, 1999, The Bank of New York succeeded to all of the corporate trust
business of Bank of Montreal Trust Company, and, as a consequence, The Bank of New York, being
otherwise qualified and eligible under Article XII of the Original Indenture, became the successor
trustee under the Indenture without further act on the part of the parties thereto, as contemplated
by Section 11 of Article XII of the Original Indenture; and
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WHEREAS, effective July 1, 0000, Xxx Xxxx xx Xxx Xxxx changed its name to The Bank of New York
Mellon.
Granting Clauses
NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE NO. 10 WITNESSETH, that, in order to
secure the payment of the principal of and premium, if any, and interest, if any, on all Bonds at
any time Outstanding under the Indenture according to their tenor, purport and effect, and to
secure the performance and observance of all the covenants and conditions therein and herein
contained (except any covenant of the Company with respect to the refund or reimbursement of taxes,
assessments or other governmental charges on account of the ownership of the Bonds of any series or
the income derived therefrom, for which the Holders of the Bonds shall look only to the Company and
not to the property hereby mortgaged or pledged), and to declare the terms and conditions upon and
subject to which the Series 9 Bonds are to be issued, and for and in consideration of the premises
and of the mutual covenants herein contained and of the purchase and acceptance of the Bonds by the
Holders thereof, and of the sum of $1 duly paid to the Company by the Trustee at or before the
ensealing and delivery hereof, and for other good and valuable consideration, the receipt and
sufficiency whereof are hereby acknowledged, the Company has executed and delivered this
Supplemental Indenture No. 10, and by these presents does grant, bargain, sell, release, convey,
assign, transfer, mortgage, pledge, set over and confirm unto the Trustee, and grant to the Trustee
a security interest in:
All and singular the premises, property, assets, rights and franchises of the Company (except
Excepted Property), whether now or hereafter owned, constructed or acquired, of whatever character
and wherever situated including, among other things (but reference to or enumeration of any
particular kinds, classes or items of property shall not be deemed to exclude from the operation
and effect of this Supplemental Indenture No. 10 any kind, class or item not so referred to or
enumerated), all right, title and interest of the Company in and to the property described as
granted in “Schedule A” attached to this Supplemental Indenture No. 10 and made part of these
Granting Clauses to the same extent as if fully set forth in the same, and all plants for the
generation of electricity by water, steam and/or other power; all power houses, substations,
transmission lines, and distributing systems; all offices, buildings and structures, and the
equipment thereof; all machinery, engines, boilers, dynamos, machines, regulators, meters,
transformers, generators and motors; all appliances whether electrical, gas or mechanical,
conduits, cables and lines; all pipes, service pipes, fittings, valves and connections, poles,
wires, tools, implements, apparatus, furniture, and chattels; all municipal franchises and other
franchises; all lines for the transmission and/or distribution of electric current, including
towers, poles, wires, cables, pipes, conduits, street lighting systems and all apparatus for use in
connection therewith; all real estate, lands, and leaseholds; all easements, servitudes, licenses,
permits, rights, powers, franchises, privileges, rights-of-way and other rights in or relating to
real estate or the occupancy of the same and all the right, title and interest of the Company in
and to all other property of any kind or nature appertaining to and/or used and/or occupied and/or
enjoyed in connection with any property hereinbefore described; it being the intention of the
parties that all property of every kind, real, personal or mixed (including, but not limited to,
all property of the types hereinbefore described), other than Excepted Property, which may be
acquired by the Company after the date hereof, shall, immediately upon the acquisition thereof by
the Company, to the extent of such acquisition, and without any further conveyance or
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assignment, become and be subject to the direct lien of the Indenture as fully and completely
as though now owned by the Company and described in said “Schedule A”; it further being the
intention of the parties, however, that the lien of and security interest granted by this
Supplemental Indenture No. 10 shall not result in the Trustee having greater rights with respect to
any property of the Company, real, personal or mixed (including, but not limited to, leasehold
interests in property), than the rights of the Company with respect to such property.
Together With all and singular the tenements, hereditaments and appurtenances
belonging or in any wise appertaining to the aforesaid premises, property, assets, rights and
franchises or any part thereof, with the reversion and reversions, remainder and remainders, and
all the estate, right, title and interest and claim whatsoever, at law as well as in equity, which
the Company now has or may hereafter acquire in and to the aforesaid premises, property, assets,
rights and franchises and every part and parcel thereof.
Subject, however, to the reservations, exceptions, limitations and restrictions contained in
the several deeds, leases, servitudes, contracts, decrees, judgments, or other instruments through
which the Company acquired or claims title to or enjoys the use of the aforesaid properties; and
subject also to such easements, leases, reservations, servitudes, reversions and other rights and
privileges of others and such mortgages, liens and other encumbrances in, on, over, across or
through said properties as existed at the time of the acquisition of such properties by the Company
or as have been granted by the Company to other persons at or prior to the time of the issuance and
delivery of the Bonds of the Initial Series; and subject also to Permitted Encumbrances and, as to
any property acquired by the Company after the time of the issuance and delivery of the Bonds of
the Initial Series, to any easements, leases, reservations, servitudes, reversions and other rights
and privileges of others and mortgages, liens or other encumbrances thereon existing, and to any
mortgages, liens and other encumbrances for unpaid portions of the purchase money placed thereon,
at the time of such acquisition; and subject also to the provisions of Article XI of the Original
Indenture;
To Have and To Hold the Trust Estate and all and singular the lands, properties,
estates, rights, franchises, privileges and appurtenances hereby granted, bargained, sold,
released, conveyed, assigned, transferred, mortgaged, pledged, set over and confirmed, together
with all the appurtenances thereunto appertaining, unto the Trustee and its successors and assigns,
forever;
But in Trust, Nevertheless, for the equal and proportionate use, benefit, security
and protection of those who from time to time shall hold the Bonds authenticated and delivered
hereunder and under the Indenture and duly issued by the Company, without any discrimination,
preference or priority of any one Bond over any other by reason of priority in the time of issue,
sale or negotiation thereof or otherwise, except as provided in Section 2 of Article IV of the
Original Indenture, so that, subject to said provisions, each and all of said Bonds shall have the
same right, lien and privilege under the Indenture and shall be equally secured thereby (except as
any sinking, amortization, improvement, renewal or other fund, established in accordance with the
provisions of the Indenture, may afford additional security for the Bonds of any particular
series), and shall have the same proportionate interest and share in the Trust Estate, with the
same effect as if all of the Bonds had been issued, sold and negotiated simultaneously on the date
of the delivery hereof; and in trust for enforcing payment of the principal of the Bonds, and
premium, if any, and interest, if any, thereon, according to the tenor, purport and effect of
the Bonds and of the Indenture, and for enforcing the terms, provisions, covenants and agreements
herein, in the Indenture and in the Bonds set forth;
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Upon Condition that, until the happening of a Default, the Company shall be suffered
and permitted to possess, use and enjoy the Trust Estate (except money, securities and other
personal property pledged or deposited with or required to be pledged or deposited with the Trustee
hereunder or under the Indenture) and to receive and use the rents, issues, income, revenues,
earnings and profits therefrom, all as more specifically provided in Section 1 of Article VII of
the Original Indenture;
And Upon the Trusts, Uses and Purposes and subject to the covenants, agreements and
conditions hereinafter set forth and declared.
ARTICLE I
Additional Definitions
Section 1. Applicability of Article
For all purposes of this Supplemental Indenture No. 10, except as otherwise expressly provided
or unless the context otherwise requires, the terms defined in this Article shall have the meanings
herein specified and include the plural as well as the singular.
Section 2. Additional Definitions.
“Administrative Agent” means JPMorgan Chase Bank, N.A., in its capacity as Administrative
Agent under the Loan Agreement.
“Interest Payment Date” means the last day of each March, June, September and December;
provided, however, that the first Interest Payment Date shall be March 31, 2010.
“Loan Agreement” means the Loan Agreement, dated as of March 1, 2010, among the Company, the
Lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, as amended, amended
and restated, supplemented or otherwise modified from time to time.
“Maturity” means the date on which the principal of the Series 9 Bonds becomes due and
payable, whether at stated maturity, upon redemption or acceleration, or otherwise.
The following terms shall have the meanings specified in the Loan Agreement: “ABR”, “Aggregate
Commitment”, “Applicable Rate”, “Loans” and “Obligations”.
A copy of the Loan Agreement is filed at the office of the Administrative Agent at 00 X.
Xxxxxxxx Xxxxxx, Xxxxxxx, XX 00000 and at the office of the Company at Xxx Xxxxx Xxxxxx Xxxxxx,
Xxxxxx, Xxxxxxx 00000.
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ARTICLE II
Series 9 Bonds
There is hereby established a series of Bonds having the following terms and characteristics
(the lettered subdivisions set forth below corresponding to the lettered subdivisions of Section 2
of Article II of the Indenture):
(a) the title of the Bonds of such series shall be “First Mortgage Bonds, Collateral
Series H” (such Bonds being hereinafter sometimes called the “Series 9 Bonds”);
(b) the aggregate principal amount of Series 9 Bonds which may be authenticated and
delivered under the Indenture shall be limited to $30,000,000, except as contemplated in
subdivision (b) of Section 2 of Article II of the Original Indenture;
(c) not applicable;
(d) the Series 9 Bonds shall mature on March 1, 2012;
(e) during the period from and including the date of the first authentication and
delivery of the Series 9 Bonds to and including the day next preceding the first Interest
Payment Date, the Series 9 Bonds shall bear interest at the rate of eight per centum (8%)
per annum; thereafter, the Series 9 Bonds shall bear interest at a rate equal to the
Applicable Rate for ABR Loans from time to time in effect plus 300 basis points; interest on
the Series 9 Bonds shall accrue from and including the date of the first authentication and
delivery of the Series 9 Bonds, except as otherwise provided in the form of bond attached
hereto as Exhibit A; interest on the Series 9 Bonds shall be payable on each Interest
Payment Date and at Maturity, and the Regular Record Date for the interest payable on each
Interest Payment Date shall be the day next preceding such Interest Payment Date; interest
payable at Maturity shall be paid to the Person to whom principal shall be paid; and
interest on the Series 9 Bonds during any period for which payment is made shall be computed
in accordance with the Loan Agreement;
(f) the office of the Trustee in New York, New York, shall be the office or agency of
the Company in The City of New York where (i) the principal of the Series 9 Bonds and
interest payable thereon at Maturity shall be payable upon presentation thereof, (ii)
registration of transfer of the Series 9 Bonds may be effected, (iii) exchanges of the
Series 9 Bonds may be effected and (iv) notices and demands to or upon the Company in
respect of the Series 9 Bonds or the Indenture may be served; provided, however, that the
Company reserves the right to change, by written notice to the Trustee, such office or
agency in The City of New York; and provided, further, that the principal office of the
Company in Tucson, Arizona shall be an additional financial office or agency where the
principal of the Series 9 Bonds and interest payable thereon at Maturity shall be
payable upon presentation thereof; interest payable on the Series 9 Bonds prior to Maturity
shall be paid by the Company directly to the Holders thereof;
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(g) the Series 9 Bonds shall not be redeemable, in whole or in part, at the option of
the Company;
(h) upon (i) the occurrence of an Event of Default under the Loan Agreement, and
further upon the condition that, in accordance with the terms of the Loan Agreement, the
Aggregate Commitments shall have been or shall have terminated and the Loans shall have been
declared to be or shall have otherwise become due and payable immediately and the
Administrative Agent shall have delivered to the Company a notice demanding redemption of
the Series 9 Bonds which notice states that it is being delivered pursuant to Article VII of
the Loan Agreement or (ii) the occurrence of an Event of Default under clause (h) or (i) of
Article VII of the Loan Agreement, then all Series 9 Bonds shall be redeemed immediately at
the principal amount thereof plus accrued interest to the date of redemption;
(i) the Series 9 Bonds shall be issued in denominations of $1,000 and any amount in
excess thereof;
(j) not applicable;
(k) not applicable;
(l) not applicable;
(m) not applicable;
(n) not applicable;
(o) not applicable;
(p) not applicable;
(q) the Series 9 Bonds are to be issued and delivered to the Administrative Agent in order to
provide collateral security for the obligation of the Company under the Loan Agreement to pay the
Obligations, as described in subdivision (u) below. The Series 9 Bonds are non-transferable,
except to a successor Administrative Agent under the Loan Agreement;
(r) not applicable;
(s) no service charge shall be made for the registration of transfer or exchange of Series 9
Bonds;
(t) not applicable;
(u) (i) the Series 9 Bonds are to be issued and delivered to the Administrative Agent in order
to provide collateral security for the obligation of the Company under the Loan Agreement to pay
the Obligations, to the extent and subject to the limitations set forth in clauses (ii) and (iii)
of this subdivision;
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(ii) the obligation of the Company to pay interest on the Series 9 Bonds on any Interest
Payment Date prior to Maturity (x) shall be deemed to have been satisfied and discharged in full in
the event that all amounts then due in respect of the Obligations shall have been paid or (y) shall
be deemed to remain unsatisfied in an amount equal to the aggregate amount then due in respect of
the Obligations and remaining unpaid (not in excess, however, of the amount otherwise then due in
respect of interest on the Series 9 Bonds);
(iii) the obligation of the Company to pay the principal of and accrued interest on the
Series 9 Bonds at or after Maturity (x) shall be deemed to have been satisfied and
discharged in full in the event that all amounts then due in respect of the Obligations
shall have been paid or (y) shall be deemed to remain unsatisfied in an amount equal to the
aggregate amount then due in respect of the Obligations and remaining unpaid (not in excess,
however, of the amount otherwise then due in respect of principal of and accrued interest on
the Series 9 Bonds);
(iv) the Trustee shall be entitled to presume that the obligation of the Company to pay
the principal of and interest on the Series 9 Bonds as the same shall become due and payable
shall have been fully satisfied and discharged unless and until it shall have received a
written notice from the Administrative Agent, signed by an authorized officer thereof,
stating that the principal of and/or interest on the Series 9 Bonds has become due and
payable and has not been fully paid, and specifying the amount of funds required to make
such payment;
(v) in the event of an application by the Administrative Agent for payment or for a
substituted Series 9 Bond pursuant to Section 11 of Article II of the Original Indenture,
the Administrative Agent shall not be required to provide any indemnity or pay any expenses
or charges as contemplated in said Section 11; and
(vi) the Series 9 Bonds shall have such other terms as are set forth in the form of
bond attached hereto as Exhibit A, which form is hereby designated as the form of the Series
9 Bonds.
ARTICLE III
Miscellaneous Provisions
This Supplemental Indenture No. 10 is a supplement to the Original Indenture. As heretofore
supplemented and further supplemented by this Supplemental Indenture No. 10, the Original Indenture
is in all respects ratified, approved and confirmed, and the Original Indenture as heretofore
supplemented and this Supplemental Indenture No. 10 shall together constitute one and the same
instrument.
The Trustee makes no representation as to the validity or sufficiency of this Supplemental
Indenture No. 10. The statements and recitals herein are deemed to be those of the Company and not
of the Trustee.
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IN WITNESS WHEREOF, Tucson Electric Power Company has caused its corporate name to be
hereunto affixed, and this instrument to be signed by one of its Vice Presidents, and its corporate
seal to be hereunto affixed and attested by its Secretary or one of its Assistant Secretaries for
and on its behalf; and The Bank of New York Mellon, as trustee, in evidence of its acceptance of
the trust hereby created, has caused its corporate name to be hereunto affixed, and this instrument
to be signed by one of its authorized signatories and its corporate seal to be hereunto affixed and
attested by one of its authorized signatories, for and on its behalf, all as of the day and year
first above written.
| Tucson Electric Power Company |
||||
| By | /s/ Kentton X. Xxxxx | |||
| Vice President | ||||
Attest:
/s/ Xxxxx Xxxxxxx
|
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| The Bank of New York Mellon, Trustee |
||||
| By | /s/ Xxxxxxxx Xxxxxx | |||
| Authorized Signatory | ||||
Attest:
/s/ Xxxxxx Xxxxxxx
|
9
State of Arizona
|
) | |||||
| ) | ss.: | |||||
County of Pima
|
) |
This instrument was acknowledged before me this 23rd day of February 2010 by
Kentton X. Xxxxx, as Vice President, Finance and Rates, and Xxxxx Xxxxxxx, as Secretary, of
Tucson Electric Power Company, an Arizona corporation, known to me to be the individuals
who executed this instrument, and known to me to be a Vice President, Finance and Rates and the
Secretary, respectively, of said corporation, and who personally acknowledged before me and stated
that they executed said instrument on behalf of said corporation for the purposes and consideration
therein expressed.
| /s/ Xxxxx X. Xxxxx | ||||
| Notary Public | ||||
10
State of New York
|
) | |||||
| ) | ss.: | |||||
County of New York
|
) |
This instrument was acknowledged before me this 23rd day of February 2010 by
Xxxxxxxx Xxxxxx, as Authorized Signatory, and Xxxxxx Xxxxxxx, as Authorized Signatory, of The
Bank of New York Mellon, a New York banking corporation, known to me to be the individuals who
executed this instrument, and known to me to be Authorized Signatories of said corporation, and who
personally acknowledged before me and stated that they executed said instrument on behalf of said
corporation for the purposes and consideration therein expressed.
| /s/ Xxxxxx X. Xxxxxxx | ||||
| Notary Public | ||||
11
Exhibit A
[Form of Bond]
This bond is non-transferable,
except to a successor Administrative Agent under the
Loan Agreement referred to herein.
This bond is non-transferable,
except to a successor Administrative Agent under the
Loan Agreement referred to herein.
| No. | $ |
TUCSON ELECTRIC POWER COMPANY
FIRST MORTGAGE BOND, COLLATERAL SERIES H
DUE MARCH 1, 2012
TUCSON ELECTRIC POWER COMPANY, a corporation of the State of Arizona (hereinafter sometimes
called the “Company”), for value received, promises to pay to
as Administrative Agent under the Loan Agreement hereinafter referred to or registered assigns, the
principal sum of
DOLLARS
on March 1, 2012 in coin or currency of the United States of America which at the time of payment
shall be legal tender for the payment of public and private debts, at the office or agency of the
Company in The City of New York, or in the City of Tucson, Arizona, upon presentation hereof, and
quarterly, on March 31, June 30, September 30 and December 31 in each year, commencing March 31,
2010 (each an “Interest Payment Date”), and at Maturity (as defined in Supplemental Indenture No.
10 hereinafter referred to), to pay interest thereon in like coin or currency at the rate specified
below, from the Interest Payment Date next preceding the date of this bond (unless this bond be
dated on an Interest Payment Date, in which case from the date hereof; or unless this bond be dated
prior to the first Interest Payment Date, in which case from and including the date of the first
authentication and delivery of the bonds of this series), until the Company’s obligation with
respect to such principal sum shall be discharged.
During the period from and including the date of the first authentication and delivery of the
bonds of this series to and including the day next preceding the first Interest Payment Date, the
bonds of this series shall bear interest at the rate of eight per centum (8%) per annum;
thereafter, the bonds of this series shall bear interest at a rate equal to the Applicable Rate for
ABR Loans (as defined in Supplemental Indenture No. 10 hereinafter referred to) from time to time
in effect plus 300 basis points. Interest on the bonds of this series during any period for which
payment is made shall be computed in accordance with the Loan Agreement.
A-1
This bond is one of an issue of bonds of the Company, issued and to be issued in one or more
series under and equally and ratably secured (except as any sinking, amortization, improvement,
renewal or other fund, established in accordance with the provisions of the
indenture hereinafter mentioned, may afford additional security for the bonds of any
particular series) by the Indenture of Mortgage and Deed of Trust, dated as of December 1, 1992
(the “Original Indenture”), from the Company to The Bank of New York Mellon, formerly known as The
Bank of New York (successor in trust to Bank of Montreal Trust Company), as trustee (the
“Trustee”), as supplemented by ten supplemental indentures including Supplemental Indenture No. 10,
dated as of March 1, 2010 (the Original Indenture, as so supplemented, and such Supplemental
Indenture being hereinafter called the “Indenture” and “Supplemental Indenture No. 10”,
respectively), to which Indenture reference is hereby made for a description of the property
mortgaged and pledged, the nature and extent of the security provided by the Indenture, the rights
and limitations of rights of the Company, the Trustee and the holders of said bonds with respect to
the security provided by the Indenture, the powers, duties and immunities of the Trustee, the terms
and conditions upon which such bonds are and are to be secured, and the circumstances under which
additional bonds may be issued. The acceptance of this bond shall be deemed to constitute the
consent and agreement by the holder hereof to all of the terms and provisions of the Indenture.
This bond is one of a series of bonds designated as the First Mortgage Bonds, Collateral Series H,
of the Company.
The Indenture permits, with certain exceptions as therein provided, the Trustee to enter into
one or more supplemental indentures for the purpose of adding any provisions to, or changing in any
manner or eliminating any of the provisions of, the Indenture with the consent of the holders of
not less than sixty per centum (60%) in aggregate principal amount of the bonds of all series then
outstanding under the Indenture, considered as one class; provided, however, that if there shall be
bonds of more than one series outstanding under the Indenture and if a proposed supplemental
indenture shall directly affect the rights of the holders of bonds of one or more, but less than
all, of such series, then the consent only of the holders of bonds in aggregate principal amount of
the outstanding bonds of all series so directly affected, considered as one class, shall be
required; and provided, further, that if the bonds of any series shall have been issued in more
than one tranche and if the proposed supplemental indenture shall directly affect the rights of the
holder of bonds of one or more, but less than all, of such tranches, then the consent only of the
holders of bonds in aggregate principal amount of the outstanding bonds of all tranches so directly
affected, considered as one class, shall be required; and provided, further, that the Indenture
permits the Trustee to enter into one or more supplemental indentures for limited purposes without
the consent of any holders of bonds. Any such consent by the holder of this bond shall be
conclusive and binding upon such holder and upon all future holders of this bond and of any bond
issued upon the registration of transfer hereof or in exchange therefor or in lieu hereof, whether
or not notation of such consent is made upon this bond.
The Company has issued and delivered the bonds of this series to JPMorgan Chase Bank, N.A., as
Administrative Agent (the “Administrative Agent”) under the Loan Agreement, dated as of March 1,
2010, among the Company, the Lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative
Agent, as amended, amended and restated, supplemented or otherwise modified from time to time (the
“Loan Agreement”), in order to provide collateral security for the obligation of the Company
thereunder to pay the Obligations (as defined in Supplemental Indenture No. 10).
Upon the occurrence of an Event of Default under the Loan Agreement, and further upon such
additional conditions as are set forth in subdivision (h) of Article II of Supplemental
Indenture No. 10, then all bonds of this series shall be redeemed immediately at the principal
amount thereof plus accrued interest to the date of redemption.
A-2
The obligation of the Company to pay interest on the bonds of this series on any Interest
Payment Date prior to Maturity (a) shall be deemed to have been satisfied and discharged in full in
the event that all amounts then due in respect of the Obligations shall have been paid or (b) shall
be deemed to remain unsatisfied in an amount equal to the aggregate amount then due in respect of
the Obligations and remaining unpaid (not in excess, however, of the amount otherwise then due in
respect of interest on the bonds of this series).
The obligation of the Company to pay the principal of and accrued interest on the bonds of
this series at or after Maturity (x) shall be deemed to have been satisfied and discharged in full
in the event that all amounts then due in respect of the Obligations shall have been paid or (y)
shall be deemed to remain unsatisfied in an amount equal to the aggregate amount then due in
respect of the Obligations and remaining unpaid (not in excess, however, of the amount otherwise
then due in respect of principal of and accrued interest on the bonds of this series).
The principal of this bond and the interest accrued hereon may become or be declared due and
payable before the stated maturity hereof, on the conditions, in the manner and at the times set
forth in the Indenture, upon the happening of a default as therein provided.
This bond is non-transferable except as required to effect transfer to any successor
administrative agent under the Loan Agreement, any such transfer to be made at the office or agency
of the Company in The City of New York, upon surrender and cancellation of this bond, and upon any
such transfer a new bond of this series, for the same aggregate principal amount and having the
same stated maturity date, will be issued to the transferee in exchange herefor. Prior to due
presentment for registration of transfer, the Company and the Trustee may deem and treat the person
in whose name this bond is registered as the absolute owner hereof for the purpose of receiving
payment and for all other purposes. This bond, alone or with other bonds of this series, may in
like manner be exchanged at such office or agency for one or more bonds of this series of the same
aggregate principal amount and having the same stated maturity date and interest rate, all as
provided in the Indenture.
No recourse shall be had for the payment of the principal of or interest on this bond, or for
any claim based hereon or otherwise in respect hereof or of the Indenture, against any
incorporator, shareholder, director or officer, as such, past, present or future, of the Company or
of any predecessor or successor corporation, either directly or through the Company or any
predecessor or successor corporation, whether by virtue of any constitution, statute or rule of
law, or by the enforcement of any assessment or penalty or by any legal or equitable proceeding or
otherwise howsoever (including, without limiting the generality of the foregoing, any proceeding to
enforce any claimed liability of shareholders of the Company, based upon any theory of disregarding
the corporate entity of the Company or upon any theory that the Company was acting as the agent or
instrumentality of the shareholders); all such liability being, by the acceptance hereof and as a
part of the consideration for the issuance hereof, expressly waived and released by every holder
hereof, and being likewise waived and released by the terms of the Indenture under which this bond
is issued, as more fully provided in said Indenture.
A-3
This bond shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been signed by The Bank of New York Mellon, or its successor, as
Trustee under the Indenture.
A-4
In Witness Whereof, the Company has caused this bond to be signed in its name by the
manual or facsimile signature of its President or one of its Vice Presidents, and its corporate
seal, or a facsimile thereof, to be impressed or imprinted hereon and attested by the manual or
facsimile signature of its Secretary or one of its Assistant Secretaries.
Dated: , 20
| TUCSON ELECTRIC POWER COMPANY |
||||
| By: | ||||
Attest:
A-5
[FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION]
This is one of the bonds, of the series designated therein, described in the within-mentioned
Indenture.
Dated: , 20
| The Bank of New York Mellon, Trustee |
||||
| By: | ||||
A-6
SCHEDULE A
DESCRIPTION OF MORTGAGED PROPERTY
Generic Description
All electric generating plants, gas generating plant, gas holders, steam plant, gas regulating
stations, substations and other properties of the Company, including all power houses, transmission
lines, buildings, pipes, structures and works, and the lands of the Company on which the same are
situated, and all the Company’s lands, easements, rights, rights-of-way, water rights, rights to
the use of water, including all of the Company’s right, title and interest in and to any and all
decrees therefor, permits, franchises, consents, privileges, licenses, poles, towers, wires, switch
racks, insulators, pipes, machinery, engines, boilers, motors, regulators, meters, tools,
appliances, equipment, appurtenances and supplies, forming a part of or appertaining to said
plants, holders, sites, stations or other properties, or any of them, or used or enjoyed or capable
of being used or enjoyed in conjunction or connection therewith; and
All electric substations and substation sites of the Company including all buildings,
structures, towers, poles, lines, and all equipment, appliances, and devices for transforming,
converting and distributing electric energy, and all the right, title and interest of the Company
in and to the land on which the same are situated, and all of the Company’s lands, easements,
rights-of-way, rights, franchises, privileges, machinery, equipment, fixtures, appliances, devices,
appurtenances and supplies forming a part of said substation or any of them, or used or enjoyed, or
capable of being used or enjoyed, in conjunction or connection therewith; and
All warehouses, buildings, structures, works and sites and the Company’s lands on which the
same are situated, and all easements, rights-of-way, permits, franchises, consents, privileges,
licenses, machinery, equipment, furniture and fixtures, appurtenances and supplies forming a part
of said warehouses, buildings, structures, works and sites, or any of them, or used or enjoyed or
capable of being used or enjoyed in connection or conjunction therewith; and
All electric distribution systems of the Company, including towers, poles, wires, insulators,
appliances, devices, appurtenances and equipment, and all the Company’s other property, real,
personal or mixed, forming a part of, or used, occupied or enjoyed in connection with or in any way
appertaining to said distribution systems, or any of them, together with all of the Company’s
rights-of-way, easements, permits, privileges, municipal or other franchises, licenses, consents
and rights for or relating to the construction, maintenance or operation thereof through, over,
under or upon any public streets or highways, or public or private lands; and also all branches,
extensions, improvements and developments of or appertaining to or connected with said electric
distribution systems, or any of them, and all other electric distribution systems of the Company
and parts thereof wherever situated, and whether now owned or hereafter acquired, as well as all
rights-of-way, easements, privileges, permits, municipal or other franchises, consents and rights
for or relating to the construction, maintenance or operation thereof, or any part thereof,
through, over, under or upon public or private lands, whether now owned or hereafter acquired; and
A-7
All electric transmission and/or distribution lines of the Company, including the towers,
poles, pole lines, wires, switch racks, insulators, supports, guys, telephone and telegraph lines
and other appliances and equipment, and all other property of the Company, real, personal or mixed,
forming a part thereof or appertaining thereto, together with all of the Company’s rights-of-way,
easements, permits, privileges, municipal or other franchises, consents, licenses and rights, for
or relating to the construction, maintenance or operation thereof, through, over, under or upon any
public streets or highways or other lands, public or private; also all extension, branches, taps,
developments and improvements of or to any and all of the above-described transmission and/or
distribution lines, telephone and telegraph lines or any of them, as well as all rights-of-way,
easements, permits, privileges, rights and municipal or other franchises, licenses and consents,
for or relating to the construction, maintenance or operation of said lines or any of them, or any
part thereof, through, over, under or upon any public streets or highways or any public or private
lands, whether now owned or hereafter acquired;
Excepting, however, any property of the character of “Excepted Property” within the meaning of
the Supplemental Indenture to which this Schedule A is attached.
Specific Description of Any Additional Real Property
Specific descriptions of additional portions of the Mortgaged Property which constitute real
property, if any, are contained in Annex 1 to this Schedule A.
A-8
Annex 1
to
Schedule A
to
Schedule A
A parcel of land located within the South half of Section 14, Township 10 South, Range 10 East of
the Gila and Salt River Base and Meridian, Pinal County, Arizona, and being that portion of that
real property recorded in Docket 124, page 516 in the Office of the Recorder, Pinal County,
Arizona, said parcel described as follows:
The East 533.81 feet of the South 500.00 feet of the Southwest quarter AND the West 656.47 feet of
the South 500.00 feet of the Southeast quarter;
Except 1/16th of all gas, oil, metals and mineral rights as reserved in the Patent to said land.
A-9
