Ex-4(c)



 





EXHIBIT 4(c)



Progress Energy, Inc.



OFFICER’S CERTIFICATE




     Thomas R. Sullivan, the Treasurer of Progress Energy, Inc. (the “Company”), pursuant to the
authority granted in the Board Resolutions dated January 10, 2006 and the Indenture, as defined
herein, does hereby certify to J.P. Morgan Trust Company, National Association (the “Trustee”), as
successor Trustee under the Indenture (For Debt Securities) of the Company, dated as of February
15, 2001 (as supplemented by this Officer’s Certificate, the “Indenture”), that he has authorized
the issue and sale of $100,000,000 principal amount of Series A Floating Rate Senior Notes due 2010
(the “Notes”) by the Company, and, in connection with such issuance, has determined, approved or
appointed, as the case may be, the following:




	1.	 	The notes of this series issued under the Indenture shall be designated “Series A Floating
Rate Senior Notes due 2010.” The Form of Note is attached hereto as Exhibit A. All
capitalized terms used in this certificate which are not defined herein shall have the
meanings (if any) set forth in Exhibit A hereto; all capitalized terms used in this
certificate which are not defined herein or in Exhibit A hereto shall have the meanings set
forth in the Indenture.
	 
	2.	 	If not redeemed earlier pursuant to their terms, the Notes shall mature and the principal
thereof shall be due and payable together with all accrued and unpaid interest thereon on
January 15, 2010.
	 
	3.	 	The Notes shall initially be issued as Global Securities registered in the name of a nominee
of The Depository Trust Company. The Notes shall be issued in denominations of $1,000 and
integral multiples thereof.
	 
	4.	 	The Notes shall bear a floating rate of interest as provided in Exhibit A.
	 
	5.	 	The Notes may be redeemed on January 15, 2008 or at any time thereafter as provided in
Exhibit A.
	 
	6.	 	The Notes shall not be subject to a sinking fund.
	 
	7.	 	Principal and interest will be payable initially at the corporate trust office of J.P. Morgan
Trust Company, National Association, presently located at 4 New York Plaza, Floor 15, New
York, New York 10004, or such other place as may be designated by the Company from time to
time.
	 
	8.	 	The Notes will be subject to certain events of default and certain covenants as set forth in
the Indenture and Exhibit A.
	 
	9.	 	The Trustee shall initially be J.P. Morgan Trust Company, National Association, the principal
corporate trust office of which presently is located at 227 West Monroe Street, Suite 2600,
Chicago, Illinois 60606.
	 
	10.	 	The Notes shall be senior unsecured obligations of the Company.




 









 












	11.	 	Any further terms of the Notes shall be as provided for in Exhibit A hereto and in the
Indenture.




[The remainder of this page intentionally left blank.]



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     IN WITNESS WHEREOF, the undersigned Treasurer of the Company has executed this Certificate as
of the 13th day of January, 2006.



	 	 	 	 	 
	 	 	 
	 	/s/ Thomas R. Sullivan
 	 
	 	Thomas R. Sullivan, Treasurer 	 
	 	 	 
	 



[Signature page to Officer’s Certificate for Floating Rate Senior Notes]




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[depositary legend]




[Insert applicable depositary legend or legends, which initially shall be the following:



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 CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO PROGRESS ENERGY, INC. (THE “COMPANY”) OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.



THIS SERIES A FLOATING RATE SENIOR NOTE DUE 2010, MAY AS PROVIDED IN THE INDENTURE, BE EXCHANGED
FOR SERIES A FLOATING RATE SENIOR NOTES DUE 2010 IN THE FORM OF DEFINITIVE CERTIFICATES OF LIKE
TENOR AND OF AN EQUAL AGGREGATE PRINCIPAL AMOUNT, IN AUTHORIZED DENOMINATIONS, REGISTERED IN THE
NAMES OF SUCH PERSONS AS THE DEPOSITARY SHALL INSTRUCT THE TRUSTEE, IF (I) THE DEPOSITARY GIVES
NOTICE TO THE COMPANY OR TO THE TRUSTEE THAT IT IS UNWILLING OR UNABLE TO CONTINUE AS DEPOSITARY
AND A SUCCESSOR DEPOSITARY IS NOT APPOINTED BY THE COMPANY WITHIN 90 DAYS, (II) THE DEPOSITARY
CEASES TO BE ELIGIBLE UNDER THE INDENTURE AND A SUCCESSOR DEPOSITARY IS NOT APPOINTED BY THE
COMPANY WITHIN 90 DAYS OR (III) THE COMPANY DECIDES TO DISCONTINUE USE OF THE SYSTEM OF BOOK-ENTRY
TRANSFERS THROUGH THE DEPOSITARY OR ITS SUCCESSOR. ANY SUCH EXCHANGE SHALL BE MADE UPON RECEIPT BY
THE TRUSTEE OF AN OFFICER’S CERTIFICATE THEREFOR AND A WRITTEN INSTRUCTION FROM THE DEPOSITARY
SETTING FORTH THE NAME OR NAMES IN WHICH THE TRUSTEE IS TO REGISTER SUCH SERIES A FLOATING RATE
SENIOR NOTES DUE 2010 IN THE FORM OF DEFINITIVE CERTIFICATES.]




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PROGRESS ENERGY, INC.




Series A Floating Rate Senior Note due 2010




	 	 	 	 	 	 	 
	No. R-1

	 	 
	 	$	100,000,000	 






CUSIP No. 743263 AK 1




     Progress Energy, Inc., a corporation duly organized and existing under the laws of the State
of North Carolina (herein called the “Company,” which term includes any successor Person under the
Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or
registered assigns, the principal sum of One Hundred Million and No/100 Dollars ($100,000,000) on
January 15, 2010 and to pay interest thereon from January 13, 2006 or from the most recent Interest
Payment Date with respect to which interest has been paid or duly provided for, quarterly on
January 15, April 15, July 15 and October 15 in each year (each an “Interest Payment Date”),
commencing April 15, 2006, at a floating rate of interest based on the Three-month LIBOR rate plus
0.45% and reset quarterly, calculated as described below, until the principal hereof is paid or
made available for payment, provided that any principal and premium, and any such installment of
interest, which is overdue shall bear interest at of the Three-month LIBOR rate plus 0.45% and
reset quarterly, calculated as described below (to the extent that the payment of such interest
shall be legally enforceable, up to a maximum of 12% per annum), from the dates such amounts are
due until they are paid or made available for payment, and such interest shall be payable on
demand. The interest so payable, and punctually paid or duly provided for, on any Interest Payment
Date will, as provided in such Indenture, be paid to the Person in whose name this Note (or one or
more Predecessor Notes) is registered at the close of business on the Regular Record Date for such
interest, which shall be (i) for Notes of this series in the form of Global Securities, on the
business day prior to each Interest Payment Date, or (ii) for Notes of this series in the form of
definitive certificates, on December 31, March 31, June 30 or September 30 (whether or not a
Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest
not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on
such Regular Record Date and may either be paid to the Person in whose name this Note (or one or
more Predecessor Notes) is registered at the close of business on a Special Record Date for the
payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
Holders of Notes of this series not less than 10 days prior to such Special Record Date, or be paid
at any time in any other lawful manner not inconsistent with the requirements of any securities
exchange on which the Notes of this series may be listed, and upon such notice as may be required
by such exchange, all as more fully provided in said Indenture.



     Payment of the principal of (and premium if any) and such interest on this Note will be made
at the office or agency of the Trustee maintained for that purpose in The City of New York, in such
coin or currency of the United States of America as at the time of payment is legal tender for
payment of public and private debts; provided, however, that at the option of the Company payment
of such interest may be made by check mailed to the address of the Person entitled thereto as such
address shall appear in the Debt Security Register.



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     The amount of interest payable for any period will be computed on the basis of a 360-day year
and the actual number of days elapsed in each quarterly interest period. If any Interest Payment
Date (other than the Stated Maturity) for the Notes falls on a day that is not a Business Day, the
Interest Payment Date will be postponed to the next succeeding Business Day, except if that
Business Day is in the next succeeding calendar month, the interest payment date will be the
immediately preceding Business Day. If the Stated Maturity or any Redemption Date for the Notes
falls on a day that is not a Business Day, the payment of principal and interest will be made on
the next succeeding Business Day, and no interest on such payment shall accrue for the period from
and after the Stated Maturity or Redemption Date. A “Business Day” means when used with respect to
a Place of Payment or any other particular location specified in the Indenture, means any day,
other than a Saturday or Sunday, which is not a day on which banking institutions or trust
companies in such Place of Payment or other location are generally authorized or required by law,
regulation or executive order to remain closed.



     Principal of and any premium on the Notes will be paid at Stated Maturity or the Redemption
Date, upon presentation of the Notes at the office of the Trustee, as the paying agent. The
Company may, at its discretion, appoint one or more additional paying agents and security
registrars and designate one or more additional places for payment and for registration of
transfer.



     Reference is hereby made to the further provisions of this Note set forth below, which further
provisions shall for all purposes have the same effect as if set forth at this place.



     Unless the certificate of authentication hereon has been executed by the Trustee referred to
below by manual signature, this Note shall not be entitled to any benefit under the Indenture or be
valid or obligatory for any purpose.



     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal.



     Dated: January 13, 2006



	 	 	 
	 

	 	PROGRESS ENERGY, INC.






	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	[SEAL]

	 	 	 	 	 	[Name]
	 

	 	 	 	 	 	[Title]
	Attest:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

[Name]

	 	 	 	 	 	 
	[Title]
	 	 	 	 	 	 






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TRUSTEE’S CERTIFICATE OF AUTHENTICATION




     This is one of the Notes of the series designated herein referred to in the within-mentioned
Indenture.



     Dated: January 13, 2006



	 	 	 	 	 
	 

	 	J.P. MORGAN TRUST COMPANY,
	 	  
	 

	 	NATIONAL ASSOCIATION,	 	 
	 

	 	as successor Trustee	 	 






	 	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 

	 	 	 	 
	 

	 	Title:
	 	 Authorized Representative






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[Form of Reverse of Series A Floating Rate Senior Note due 2010]




     This Note is one of the duly authorized issue of securities of the Company of the series
designated on the face hereof (herein called the “Notes”), issued and to be issued in one or more
series under an Indenture (For Debt Securities), dated as of February 15, 2001 (herein, together
with any amendments thereto, called the “Indenture,” which term shall have the meaning assigned to
it in such instrument), between the Company and J.P. Morgan Trust Company, National Association, as
successor Trustee (herein called the “Trustee,” which term includes any successor trustee under the
Indenture), and reference is hereby made to the Indenture, including the Board Resolutions and
Officer’s Certificate filed with the Trustee on January 13, 2006, creating the series designated on
the face hereof, for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the Notes and of the terms
upon which the Notes are, and are to be, authenticated and delivered.



     The Notes are senior unsecured obligations of the Company and rank equally with all of the
Company’s other senior unsecured indebtedness from time to time outstanding. Debt Securities may be
issued under the Indenture from time to time as a single series or in two or more separate series
up to the aggregate principal amount from time to time authorized for each series. The Company
may, from time to time, without the consent of the holder of this Note, provide for the issuance of
Notes or other Debt Securities under the Indenture in addition to this Note.



     The Notes will not be subject to a sinking fund.



Events of Default




     If an Event of Default with respect to Notes of this series shall occur and be continuing, the
principal of the Notes may be declared due and payable in the manner and with the effect provided
in the Indenture.



     In addition to the Events of Default specified in the Indenture, a default with respect to any
indebtedness to which the Company is a party other than the Notes of this series shall constitute
an Event of Default with respect to the Notes of this series if: (i) the default results from a
failure to pay such indebtedness when due, whether by reason of acceleration or otherwise
and (ii) the principal amount of such indebtedness, together with the principal amount of
any other such defaulted indebtedness, exceeds $50,000,000.



Interest Rate and Calculation




     The Notes will bear interest from the date of original issuance at the rates determined by the
calculation agent as described below. Interest on the Notes will be payable quarterly, in arrears,
on January 15, April 15, July 15 and October 15 of each year, beginning on April 15, 2006, to the
Person in whose name this Note (or one or more Predecessor Notes) is registered at the close of
business on the Regular Record Date for such interest, which shall be (i) for Notes of this series
in the form of Global Securities, on the business day prior to each Interest Payment



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Date, or (ii) for Notes of this series in the form of definitive certificates, on December 31,
March 31, June 30 or September 30 (whether or not a Business Day), as the case may be, next
preceding such Interest Payment Date.




     The interest rate applicable during each quarterly interest period will be equal to the
Three-month LIBOR Rate (as defined below) as of the Interest Determination Date, plus 0.45%.
Interest on the Notes for subsequent quarterly periods will be reset on each Interest Payment Date
(each of these dates is called an “Interest Reset Date”), beginning on April 15, 2006, based on the
Three-month LIBOR Rate as of the Interest Determination Date, plus 0.45% per year. The interest
rate on the Notes will in no event be higher than the maximum rate permitted by New York law as the
same may be modified by United States law of general application; provided however, that in no
event shall the rate of interest on the Notes exceed 12% per annum.



     “Three-month LIBOR Rate” means the rate for deposits in U.S. dollars for the three-month
period commencing on the applicable interest reset date which appears on Telerate Page 3750 at
approximately 11:00 a.m., London time, on the applicable Interest Determination Date. If this rate
does not appear on Telerate Page 3750, the calculation agent will determine the rate on the basis
of the rates at which deposits in U.S. dollars are offered by four major banks in the London
interbank market (selected by the calculation agent) at approximately 11:00 a.m., London time, on
the applicable Interest Determination Date to prime banks in the London interbank market for a
period of three months commencing on that interest reset date and in a principal amount equal to an
amount not less than $1,000,000 that is representative for a single transaction in such market at
such time. In such case, the calculation agent will request the principal London office of each of
the aforesaid major banks to provide a quotation of such rate. If at least two such quotations are
provided, the rate for that interest reset date will be the arithmetic mean of the quotations, and,
if fewer than two quotations are provided as requested, the rate for that interest reset date will
be the arithmetic mean of the rates quoted by three major banks in New York City, selected by the
calculation agent, at approximately 11:00 a.m., New York City time, on the applicable Interest
Determination Date for loans in U.S. dollars to leading European banks for a period of three months
commencing on that interest reset date and in a principal amount equal to an amount not less than
$1,000,000 that is representative for a single transaction in such market at such time; provided,
however, that if fewer than three banks selected by the calculation agent are quoting rates, the
interest rate for the applicable interest period will be the same as the interest rate for the
immediately preceding period.



     “Telerate Page 3750” means the display page so designated on the Moneyline Telerate, Inc. (or
such other page as may replace such page on that service or any successor service for the purpose
of displaying London interbank offered rates of major banks).



     “Interest Determination Date” means, with respect to any interest reset date, the second
London banking day prior to the applicable interest reset date; provided that the initial Interest
Determination Date shall be January 11, 2006.



     A London banking day is any business day in which dealings in U.S. dollars are transacted in
the London interbank market.



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     The calculation agent will, upon the request of the holder of any Note, provide the interest
rate then in effect. Under a Calculation Agency Agreement between the Company and J.P. Morgan
Trust Company, National Association, the Trustee under the Indenture will also serve as the
calculation agent until such time as the Company appoints a successor calculation agent. All
calculations made by the calculation agent in the absence of manifest error shall be conclusive for
all purposes and binding on the Company and the holders of the Notes. The Company may, in its sole
discretion, appoint a successor calculation agent.



     All percentages resulting from any calculation of the interest rate with respect to the Notes
will be rounded, if necessary, to the nearest one-hundred thousandth of a percentage point, with
five one-millionths of a percentage point rounded upwards (for example, 9.876545% (or .09876545)
being rounded to 9.87655% (or .0987655) and 9.876544% (or .09876544)
being rounded to 9.87654% (or .0987654)), and all dollar amounts in or resulting from any such calculation will be rounded to the
nearest cent (with one-half cent being rounded upwards).



Restrictive Covenants




     Limitation on Liens



     So long as the Notes remain outstanding, neither the Company nor any of its Subsidiaries may
issue, assume or guarantee or permit to exist any indebtedness secured by a lien on any capital
stock of any Subsidiary or on any tangible property owned by the Company or any Subsidiary, without
effectively securing the Notes equally and ratably with (or prior to) the new indebtedness (but
only so long as such new indebtedness is so secured).



     The foregoing limitation does not limit the following liens and indebtedness:



          (1) purchase money liens on property acquired in the future; liens of any kind existing on
property or shares of stock at the time they are acquired; conditional sales agreements and other
title retention agreements on property acquired in the future (as long as none of the liens
referenced in this clause (1) cover any other properties of the Company or any of its Subsidiaries;




          (2) liens on property that exist as of the date the Notes are first issued (including the
existing first mortgage indentures of Carolina Power & Light Company d/b/a Progress Energy
Carolinas, Inc. and Florida Power Corporation d/b/a Progress Energy Florida, Inc.); liens on the
shares of stock of any corporation, which liens existed at the time that corporation became a
Subsidiary;




          (3) liens in favor of the United States (or any State or territory thereof), any foreign
country or any department, agency or instrumentality or political subdivision of those
jurisdictions, to secure payments pursuant to any contract or statute or to secure any debt
incurred for the purpose of financing the purchase price or the cost of constructing or improving
the property subject to those liens, including, for example, liens to secure debt of the pollution
control or industrial revenue bond type;




          (4) debt issued by the Company or any Subsidiary in connection with a consolidation or merger
of the Company or any such Subsidiary with or into any other company




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in exchange for secured debt of that company (“Third Party Debt”) as long as that debt (i) is
secured by a mortgage on all or a portion of the property of that company, (ii) prohibits secured
debt from being incurred by that company, unless the Third Party Debt is secured on an equal and
ratable basis or (iii) prohibits secured debt from being incurred by that company;




          (5) liens on any property acquired, constructed, developed or improved after the date the
Notes are first issued, which liens are created before or within 24 months after the acquisition,
construction, development or improvement of the property and secure the payment of the costs of
such acquisition, construction, development or improvement or related costs;




          (6) liens in favor of the Company or any of the Company’s wholly owned Subsidiaries;




          (7) the replacement, extension or renewal of any lien referred to above in clauses (1) through
(6) as long as the amount secured by the liens or the property subject to the liens is not
increased; and




          (8) any other lien not covered by clauses (1) through (7) above as long as immediately after
the creation of the lien the aggregate principal amount of debt secured by all liens created or
assumed under this clause (8), together with the aggregate Attributable Value of all Sale and
Leaseback Transactions (other than Sale and Leaseback Transactions permitted by clause (2) of the
“Limitation on Sale and Leaseback Transactions” covenant below), does not exceed 20% of the
Company’s Consolidated Net Tangible Assets.




     Limitation on Sale and Leaseback Transactions



     So long as the Notes remain outstanding, neither the Company nor any of its Subsidiaries may
enter into any Sale and Leaseback Transaction unless either:



          (1) the Company and its Subsidiaries would be entitled pursuant to the “Limitation on Liens”
covenant above to create indebtedness secured by a lien on the property to be leased back in an
amount equal to the Attributable Value of such Sale and Leaseback Transaction without the Notes
being effectively secured equally and ratably with (or prior to) that indebtedness; or




          (2) the Company or the relevant Subsidiary, within 270 days after the sale or transfer of the
relevant assets shall have been made, applies, in the case of a sale or transfer for cash, an
amount equal to the net proceeds from the sale or, in the case of a sale or transfer otherwise than
for cash, an amount equal to the fair market value of the property so leased (as determined by any
two directors of the Company or the relevant Subsidiary) to (i) the retirement of long-term
indebtedness of the Company or the relevant Subsidiary ranking prior to or on a parity with the
Notes or (ii) the investment in any property used in the ordinary course of business by the Company
or any Subsidiary.




     As used in this subsection:



     “Attributable Value” means, as to any particular lease under which the Company or any of its
Subsidiaries is at any time liable as lessee and at any date as of which the amount thereof is



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to be determined, the amount equal to the greater of (i) the net proceeds from the sale or
transfer of the property leased pursuant to the Sale and Leaseback Transaction or (ii) the net book
value of the property, as determined by the Company in accordance with generally accepted
accounting principles at the time of entering into the Sale and Leaseback transaction, in either
case multiplied by a fraction, the numerator of which shall be equal to the number of full years of
the term of the lease that is part of the Sale and Leaseback Transaction remaining at the time of
determination and the denominator of which shall be equal to the number of full years of the term,
without regard, in any case, to any renewal or extension options contained in the lease.




     “Consolidated Net Tangible Assets” means the amount shown as total assets on the Company’s
consolidated balance sheet, less (i) intangible assets including, without limitation, such items as
goodwill, trademarks, trade names, patents, unamortized debt discount and expense and certain
regulatory assets, and (ii) appropriate adjustments, if any, on account of minority interest.
Consolidated Net Tangible Assets shall be determined in accordance with generally accepted
accounting principles and practices applicable to the type of business in which the Company is
engaged and approved by the independent accountants regularly retained by the Company, and may be
determined as of a date not more than 60 days prior to the happening of the event for which such
determination is being made.



     “Subsidiary” means an entity more than 50% of the outstanding voting stock (or comparable
equity interest) of which is owned, directly or indirectly, by the Company or by one or more other
Subsidiaries, or by the Company and one or more other Subsidiaries. For the purposes of this
definition, “voting stock” means stock that ordinarily has voting power for the election of
directors, whether at all times or only so long as no senior class of stock has such voting power
by reasons of any contingency.



     “Sale and Leaseback Transaction” means any transaction or series of related transactions
relating to property now owned or hereafter acquired by the Company or any of its Subsidiaries
whereby the Company or one of its Subsidiaries transfers the property to a person, and the Company
or one of its Subsidiaries leases the property from that person for a period, including renewals,
in excess of 48 months.



Optional Redemption




     The Company may, at its option, redeem the Notes in whole or in part on January 15, 2008 or
any time thereafter at a redemption price equal to 100% of the principal amount of the Notes being
redeemed, plus accrued and unpaid interest to the Redemption Date.



     So long as the Notes are registered in the name of DTC, its nominee or a successor depositary,
if the Company elects to redeem less than all of the Notes, DTC’s practice is to determine by lot
the amount of the interest of each eligible DTC participant in the Notes to be redeemed. At all
other times, if the Company elects to redeem less than all of the Notes, the Trustee will select,
in such manner as it deems fair and appropriate, the particular Notes, or portions of them, to be
redeemed. Notice of redemption shall be given by mail not less than 30 nor more than 60 days prior
to the date fixed for redemption to the holders of Notes to be redeemed, which, as long as the
Notes are held in the book-entry only system, will be DTC, its nominee or a successor depositary.
On and after the Redemption Date (unless the Company



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defaults in the payment of the Redemption Price and interest accrued thereon to such date),
interest on the Notes, or the portions of them so called for redemption, shall cease to accrue.




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



Certain Indenture Provisions




     The Indenture permits, in certain circumstances therein specified, the amendment thereof
without the consent of the Holders of any of the Debt Securities. The Indenture also permits, with
certain exceptions as therein provided, the amendment thereof and the modification of the rights
and obligations under the Indenture of the Company and the rights of Holders of the Debt Securities
of each series to be affected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of a specified percentage in aggregate principal amount of the Debt
Securities at the time Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of a specified percentage in aggregate principal amount of the
Debt Securities of each series at the time Outstanding, on behalf of the Holders of all the Debt
Securities of such series, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences. Any such consent
or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all
future Holders of this Note and of any Note issued upon the registration of transfer hereof or in
exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon
this Note.



     As provided in and subject to the provisions of the Indenture, a Holder of Debt Securities
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Debt Securities of this series, the Holders of not less than a specified percentage in
aggregate principal amount of the Debt Securities of all series at the time Outstanding in respect
of which an Event of Default shall have occurred and be continuing shall have made written request
to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered
the Trustee reasonable indemnity, and the Trustee shall not have received from the Holders of a
majority in principal amount of Debt Securities of all series at the time Outstanding in respect of
which an Event of Default shall have occurred and be continuing a direction inconsistent with such
request, and shall have failed to institute any such proceeding, for 60 days after receipt of such
notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the
Holder of this Note for the enforcement of any payment of principal hereof or any premium or
interest hereon on or after the respective due dates expressed herein.



     No reference herein to the Indenture and no provision of this Note, subject to the provisions
for satisfaction and discharge in Article Seven of the Indenture, shall alter or impair the
obligation of the Company, which is absolute and unconditional, to pay the principal of and
interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed.



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     The Indenture permits the Company, by irrevocably depositing, in amounts and maturities
sufficient to pay and discharge at the Stated Maturity or Redemption Date, as the case may be, the
entire indebtedness on all Outstanding Notes, cash or U.S. Government Obligations with the Trustee
in trust solely for the benefit of the Holders of all Outstanding Notes, to defease the Indenture
with respect to such Notes, and upon such deposit the Company shall be deemed to have paid and
discharged its entire indebtedness on such Notes. Thereafter, Holders would be able to look only
to such trust fund for payment of principal and interest at the Stated Maturity or Redemption Date,
as the case may be.



     The Notes are issuable only in registered form without coupons in denominations of $1,000 and
any integral multiple thereof. As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of Notes is registrable in the Debt Security Register, upon
surrender of a Note for registration of transfer at the Corporate Trust Office of the Trustee or at
such other offices or agencies of the Trustee from time to time designated for such purpose, or at
such other offices or agencies as the Company may designate, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the Security Registrar duly
executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Notes of like tenor, of authorized denominations and for the same aggregate principal
amount, shall be issued to the designated transferee or transferees.



     No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.



     Prior to due presentment of this Note for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may treat the Person in whose name this Note is
registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the contrary.



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





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