Document:

Exhibit 4.2(c)

 

PUBLIC SERVICE COMPANY

OF NEW HAMPSHIRE

AND

U.S. BANK NATIONAL ASSOCIATION,

 

Successor to WACHOVIA BANK, NATIONAL ASSOCIATION

 

and to FIRST UNION NATIONAL BANK

 

Formerly Known as FIRST FIDELITY BANK, NATIONAL ASSOCIATION,

NEW JERSEY

 

Successor to BANK OF NEW ENGLAND, NATIONAL ASSOCIATION

(Formerly Known as NEW ENGLAND MERCHANTS NATIONAL BANK)

and to

NEW BANK OF NEW ENGLAND, NATIONAL ASSOCIATION, TRUSTEE

 

SUPPLEMENTAL INDENTURE

Dated as of

 

TO ISSUE SERIES 

FIRST MORTGAGE BONDS

 

$                        First
Mortgage Bonds, Series   , due

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  
	
  Date and Parties

  
	
  Recitals

  
	
  Granting Clauses

  
	
  Exceptions

  
	
  Habendum

  
	
  Declaration in Trust

  
	
   

  
	
  ARTICLE 1 – SERIES    BONDS

  
	
  1.01   Designation; Amount

  
	
  1.02   Form of Series    Bonds;
  Global Security; Depository for Global Securities

  
	
  1.03   Provisions of Series   
  Bonds; Interest Accrual

  
	
  1.04   Transfer and Exchange of
  Series    Bonds

  
	
  1.05   Redemption of the Series   
  Bonds

  
	
  1.06   Effect of Event of Default

  
	
  1.07   Payment Date Not a Business Day

  
	
  1.08   Amendment and Restatement of Mortgage
  Indenture

  
	
   

  
	
  ARTICLE 2 – MISCELLANEOUS PROVISIONS

  
	
  2.01   Recitals

  
	
  2.02   Benefits of Supplemental Indenture

  
	
  2.03   Effect of Supplemental Indenture

  
	
  2.04   Termination

  
	
  2.05   Trust Indenture Act

  
	
  2.06   Counterparts

  
	
  2.07   Notices

  
	
  2.08   Definitions

  
	
   

  
	
  Testimonium

  
	
  Signatures

  
	
   

  
	
  Schedule A - Form of Series   
  Bonds

  
	
  Schedule B - Description of Certain Properties
  Acquired Since
                        .

  

 

Acknowledgments

Endorsement

 

i

 

THIS
SUPPLEMENTAL INDENTURE dated as of
                        ,
between PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE (with its successors and
assigns, the “Company”), a corporation duly organized and existing under the
laws of the State of New Hampshire, having its principal place of business at
Energy Park, 780 North Commercial Street in Manchester, New Hampshire 03101,
and U.S. BANK NATIONAL ASSOCIATION (as successor to Wachovia Bank, National
Association, and by merger to First Union National Bank, formerly known as
First Fidelity Bank, National Association, New Jersey, successor in trust to
Bank of New England, National Association (formerly known as New England
Merchants National Bank) and to New Bank of New England, National Association),
said U.S. BANK NATIONAL ASSOCIATION being a national banking association duly
organized and existing under the laws of the United States of America having a
corporate trust office at 21 South Street, Third Floor, Morristown, New
Jersey 07960 and duly authorized to execute the trusts hereof (with its
successors in trust, the “Trustee”) under the General and Refunding Mortgage
Indenture, dated August 15, 1978 (as amended by ten supplemental
indentures, including the Tenth Supplemental Indenture dated as of May 1,
1991, the “Original Indenture” and sometimes referred to, with each and every
prior indenture supplemental thereto and each and every other instrument,
including this Supplemental Indenture, supplemental to the Original Indenture,
as the “Indenture”).

 

WHEREAS,
the Company has previously executed and delivered to the Trustee supplemental
indentures which are part of the Indenture for the purposes recited therein and
for the purpose of issuing bonds under the Indenture, the currently outstanding
series of which are set forth in the following table:

 

	
  Supplemental

  Indenture

  No.

  	
   

  	
  Dated

  as of

  	
   

  	
  Series

  	
   

  	
  Series Designation

  	
   

  	
  Principal

  Amount

  Authorized

  	
   

  	
  Principal

  Amount

  Issued

  	
   

  	
  Principal

  Amount

  Outstanding

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

*                                         These First Mortgage Bonds contain
provisions for changes in the interest rate.

 

WHEREAS,
the execution and delivery of this Supplemental Indenture and the issue of not
exceeding initially
$                      in
aggregate principal amount of the Company’s First Mortgage Bonds, Series   
(hereinafter generally referred to as the “Series    Bonds” or
the “bonds of Series   ”), and other necessary actions have been
duly authorized by the Board of Directors of the Company;

 

WHEREAS,
the Company proposes to execute and deliver this Supplemental Indenture to
provide for the issue of the bonds of Series    and confirm the
lien of the Indenture on the property referred to below, all as permitted by Section 15.1
of the Original Indenture;

 

WHEREAS,
the Company has purchased, constructed or otherwise acquired certain additional
property not heretofore specifically described in the Indenture but which is
and is intended to be subject to the lien thereof, and proposes specifically to
subject such additional property to the lien of the Indenture at this time;

 

2

 

WHEREAS,
all acts and things necessary to make the initial issue of the Series   
Bonds, when executed by the Company and authenticated by the Trustee and
delivered as in the Original Indenture provided, the legal, valid and binding
obligations of the Company according to their terms and to make this
Supplemental Indenture a legal, valid and binding instrument for the security
of the bonds, in accordance with its and their terms, have been done and
performed, and the execution and delivery of this Supplemental Indenture has in
all respects been duly authorized;

 

NOW,
THEREFORE, in consideration of the premises, and of the acceptance of said Series   
Bonds by the holder thereof, and of the sum of $1.00 duly paid by the Trustee
to the Company, and of other good and valuable considerations, the receipt
whereof is hereby acknowledged, and in confirmation of and supplementing the
Original Indenture as previously supplemented by said preceding supplemental
indentures, and in performance of and compliance with the provisions thereof,
said Public Service Company of New Hampshire, by these presents, does give,
grant, bargain, sell, transfer, assign, pledge, mortgage and convey unto U.S.
Bank National Association, as Trustee, as provided in the Original Indenture,
as previously supplemented and amended and as supplemented by this Supplemental
Indenture, and its successor or successors in the trust thereby and hereby
created, and its and their assigns, (a) all and singular the property, and
rights and interests in property, described in the Original Indenture and the
preceding supplemental indentures (said supplemental indentures, in each case,
as applicable, as amended by the Tenth Supplemental Indenture, hereinafter
referred to as the Preceding Supplemental Indentures), and thereby conveyed,
pledged, assigned, transferred and mortgaged, or intended so to be (said
descriptions in said Original Indenture and the Preceding Supplemental
Indentures being hereby made a part hereof to the same extent as if set forth
herein at length), whether then or now owned or thereafter or hereafter
acquired, except such of said properties or interests therein as may have been
released or sold or disposed of in whole or in part as permitted by the
provisions of the Original Indenture, and (b) also, but without in any way
limiting the generality of the foregoing, all the right, title and interest of
the Company, now owned or hereafter acquired, in and to the rights, titles,
interests and properties described or referred to in Schedule B hereto
attached and hereby made a part hereof as fully as if set forth herein at
length, in all cases not specifically reserved, excepted and excluded; the
foregoing property, and rights and interests in property, being located in the
following listed municipalities in New Hampshire and unincorporated areas in
Coos County, New Hampshire, as well as in various municipalities in the States
of Maine, Vermont and elsewhere:

 

BELKNAP
COUNTY — Alton, Barnstead, Belmont, Center Harbor, Gilford, Gilmanton, Laconia,
Meredith, New Hampton, Sanbornton, Tilton;

 

CARROLL
COUNTY — Albany, Brookfield, Chatham, Conway, Eaton, Effingham, Freedom,
Madison, Moultonboro, Ossipee, Sandwich, Tamworth, Tuftonboro, Wakefield,
Wolfeboro;

 

CHESHIRE
COUNTY — Alstead, Chesterfield, Dublin, Fitzwilliam, Gilsum, Harrisville,
Hinsdale, Jaffrey, Keene, Marlborough, Marlow, Nelson, Richmond, Rindge,
Roxbury, Stoddard, Sullivan, Surry, Swanzey, Troy, Westmoreland, Winchester;

 

3

 

COOS
COUNTY — Bean’s Grant, Berlin, Cambridge, Carroll, Chandler’s Purchase,
Clarksville, Colebrook, Columbia, Crawford’s Purchase, Dalton, Dummer, Errol,
Gorham, Green’s Grant, Jefferson, Lancaster, Martin’s Location, Milan,
Millsfield, Northumberland, Pinkham’s Grant, Pittsburg, Randolph, Shelburne,
Stark, Stewartstown, Stratford, Success, Thompson & Meserve’s
Purchase, Wentworth’s Location, Whitefield;

 

GRAFTON
COUNTY — Alexandria, Ashland, Bath, Bethlehem, Bridgewater, Bristol, Campton,
Easton, Enfield, Franconia, Grafton, Hanover, Haverhill, Hebron, Holderness,
Landaff, Lincoln, Lisbon, Littleton, Lyman, Lyme, Orange, Orford, Piermont,
Plymouth, Rumney, Sugar Hill, Thornton, Woodstock;

 

HILLSBOROUGH
COUNTY — Amherst, Antrim, Bedford, Bennington, Brookline, Deering, Francestown,
Goffstown, Greenfield, Greenville, Hancock, Hillsborough, Hollis, Hudson,
Litchfield, Lyndeborough, Manchester, Mason, Merrimack, Milford, Mont Vernon,
Nashua, New Boston, New Ipswich, Pelham, Peterborough, Sharon, Temple, Weare,
Wilton, Windsor;

 

MERRIMACK
COUNTY — Allenstown, Andover, Boscawen, Bow, Bradford, Canterbury, Chichester,
Concord, Danbury, Dunbarton, Epsom, Franklin, Henniker, Hill, Hooksett,
Hopkinton, Loudon, Newbury, New London, Northfield, Pembroke, Pittsfield,
Salisbury, Sutton, Warner, Webster, Wilmot;

 

ROCKINGHAM
COUNTY — Auburn, Atkinson, Brentwood, Candia, Chester, Danville, Deerfield,
Derry, East Kingston, Epping, Exeter, Fremont, Greenland, Hampstead, Hampton,
Hampton Falls, Kensington, Kingston, Londonderry, New Castle, Newfields,
Newington, Newmarket, Newton, North Hampton, Northwood, Nottingham, Portsmouth,
Raymond, Rye, Sandown, Seabrook, South Hampton, Stratham, Windham;

 

STRAFFORD
COUNTY — Barrington, Dover, Durham, Farmington, Lee, Madbury, Middleton,
Milton, New Durham, Rochester, Rollinsford, Somersworth, Strafford;

 

SULLIVAN
COUNTY — Charlestown, Claremont, Cornish, Croydon, Goshen, Grantham, Lempster,
Newport, Plainfield, Springfield, Sunapee, Unity, Washington;

 

SUBJECT,
HOWEVER, as to all of the foregoing, to the specific rights, privileges, liens,
encumbrances, restrictions, conditions, limitations, covenants, interests,
reservations, exceptions and otherwise as provided in the Original Indenture
and the Preceding Supplemental Indentures, and in the descriptions in the
schedules thereto and hereto and in the deeds or grants in said schedules
referred to;

 

BUT
SPECIFICALLY RESERVING, EXCEPTING AND EXCLUDING (as the same are reserved,
excepted and excluded from the lien of the Original Indenture and the Preceding
Supplemental Indentures) from this instrument and the grant, conveyance,
mortgage, transfer and assignment herein contained, all right, title and
interest of the Company, now owned or hereafter acquired, in and to the
properties and rights specified in subclauses (a) to (m), both inclusive,
of 

 

4

 

the
paragraph beginning “BUT SPECIFICALLY RESERVING, EXCEPTING AND EXCLUDING...”
which paragraph is part of the granting clauses of the Original Indenture;

 

TO
HAVE AND TO HOLD all said plant, premises, property, franchises and rights
hereby conveyed, assigned, pledged or mortgaged, or intended so to be, unto the
Trustee, its successor or successors in trust, and to its and their assigns
forever;

 

BUT
IN TRUST, NEVERTHELESS, with power of sale, for the equal pro rata benefit,
security and protection of the owners of the bonds without any preference, priority
or distinction whatever of any one bond over any other bond by reason of
priority in the issue, sale or negotiation thereof, or otherwise;

 

PROVIDED,
HOWEVER, and these presents are upon the condition, that if the Company shall
pay or cause to be paid or make appropriate provision for the payment unto the
holders of the bonds of the principal, premium, if any, and interest to become
due thereon at the times and in the manner stipulated therein, and shall keep,
perform and observe all and singular the covenants, agreements and provisions
in the Indenture expressed to be kept, performed and observed by or on the part
of the Company, then the Indenture and the estate and rights thereby and hereby
granted shall, pursuant and subject to the provisions of Article 16 of the
Original Indenture, cease, determine and be void, but otherwise shall be and
remain in full force and effect.

 

AND
IT IS HEREBY COVENANTED, DECLARED AND AGREED, upon the trusts and for the
purposes aforesaid, as set forth in the following covenants, agreements,
conditions and provisions, viz.:

 

ARTICLE 1

SERIES    BONDS

 

SECTION 1.01.  Designation; Amount.  The bonds
of Series    shall be designated “First Mortgage Bonds, Series   ,
due      ” and shall initially be authenticated in the
aggregate principal amount of
                                              
Dollars
($                            ).
 The initial issue of the bonds of Series    may be
effected upon compliance with the applicable provisions of the Original
Indenture.  Additional bonds of Series   ,
without limitation as to amount, having the same terms and conditions as the
bonds of Series    (except for the date of original issuance,
the initial interest payment date and the offering price) may also be issued by
the Company without the consent of the holders of the bonds of Series   ,
pursuant to a separate supplemental indenture related thereto.  Such additional bonds of Series   
shall be part of the same series as the bonds of Series   .  The Trustee shall authenticate and deliver up
to
$                               
aggregate principal amount of Series    Bonds at any time upon
application by the Company and compliance with the applicable provisions of the
Original Indenture.

 

SECTION 1.02.  Form of Series    Bonds;
Global Security; Depository for Global Securities.  The Series   
Bonds shall be issued only in fully registered form without coupons in
denominations of One Thousand Dollars ($1,000.00) and multiples thereof.

 

5

 

The
Series    Bonds shall be initially represented by one or more
global securities (the “Global Securities”).  Each Global Security will be
deposited with, or on behalf of, The Depository Trust Company, as depository (“DTC”),
and registered in the name of Cede & Co., a nominee of DTC.

 

The
Series    Bonds shall be in substantially the form set forth in
Schedule A attached hereto.  The terms of the Series   
Bonds contained in such form are hereby incorporated herein by reference as
though fully set forth in this place and are made a part of this Supplemental
Indenture.

 

SECTION 1.03.  Provisions of Series    Bonds;
Interest Accrual.  The Series    Bonds shall mature on
                             and
shall bear interest at the rate of      % per year, payable
semiannually in arrears on
                         and
                        
of each year (each, an “Interest Payment Date”) (except that the final Interest
Payment Date will be
                        )
beginning on                         ,
and on the maturity date, until the Company’s obligation in respect of the
principal thereof shall be discharged, and at the rate of
                %
per annum on any overdue principal and premium and on any overdue installment
of interest.  The Series    Bonds shall be dated the date
of authentication thereof by the Trustee and shall bear interest on the
principal amount from, and including, the date of original issuance to, and
excluding, the first Interest Payment Date and then from, and including, the immediately
preceding Interest Payment Date to which interest has been paid or duly
provided for to, but excluding, the next Interest Payment Date or the maturity
date, as the case may be.  Interest on the Series    Bonds
will be computed on the basis of 360-day year of twelve 30-day months.

 

The
Series    Bonds shall be payable both as to principal and
interest at the corporate trust office of the Trustee at U.S. Bank National
Association in Morristown, New Jersey or the corporate trust office of its
successors, in any coin or currency of the United States of America which at
the time of payment is legal tender for the payment of public and private
debts.  The interest on the Series    Bonds shall be
payable without presentation, and only to or upon the person in whose name the Series   
Bonds are registered at the close of business on the business day prior to each
Interest Payment Date.  The Series    Bonds shall be
callable for redemption in whole or in part according to the terms and
provisions provided herein in Section 1.05.

 

The
Company has initially designated DTC as the depository for the Series   
Bonds.  For as long as the Series    Bonds or any portion
thereof are in the form of a Global Security, and notwithstanding the previous
paragraph, all payments of interest, principal and other amounts in respect of
the Series    Bonds shall be made to DTC or its nominee in
accordance with its applicable policies and procedures, in the coin or currency
specified above.  So long as the Series    Bonds are in the
form of a Global Security, neither the Company nor the Trustee shall have any
responsibility with respect to the policies and procedures of DTC, or any
successor depository, or for any notices or other communications among DTC, its
direct and indirect participants or beneficial owners of the Series   
Bonds.

 

SECTION 1.04.  Transfer and Exchange of Series   
Bonds.  So long as the Series    Bonds are in the form of
Global Securities, the Series    Bonds may not be transferred
except as a whole (1) by DTC to a nominee of DTC or (2) by a nominee
of DTC to DTC or another nominee 

 

6

 

of
DTC or (3) by DTC or any such nominee to a successor of DTC or a nominee
of such successor.  If (1) DTC is at any time unwilling or unable to
continue as depository and a successor depository is not appointed by the
Company within ninety days or (2) there shall have occurred and be
continuing after any applicable grace periods an Event of Default under the
Indenture with respect to the Series    Bonds represented by
such Global Security, the Company will issue certificated Series   
Bonds in definitive registered form in exchange for the Global Securities.

 

The
Company may at any time and in its sole discretion determine not to have any Series   
Bonds in registered form represented by one or more Global Securities and, in
such event, will issue certificated bonds in definitive form in exchange for
the Global Securities representing the Series    Bonds.  In
any such instance, an owner of a beneficial interest in the Global Securities
will be entitled to physical delivery in definitive form of certificated bonds
represented by the Global Securities equal in principal amount to such
beneficial interest and to have such certificated bonds registered in its name.

 

In
the event certificated bonds are issued in exchange for the Global Securities,
the Series    Bonds may be surrendered for registration of
transfer as provided in Section 2.8 of the Original Indenture at the
corporate trust office of the Trustee at U.S. Bank National Association in
Morristown, New Jersey or the corporate trust offices of its successors, and
may be surrendered at said office for exchange for a like aggregate principal
amount of Series    Bonds of other authorized denominations.
 Notwithstanding the provisions of Section 2.7 of the Original
Indenture, no charge, except for taxes or other governmental charges, shall be
made by the Company for any registration of transfer of Series   
Bonds or for the exchange of any Series    Bonds for such bonds
of other authorized denominations.

 

SECTION 1.05.  Redemption of the Series   
Bonds.  The Series    Bonds are subject to redemption,
in whole or in part, at the option of the Company at any time.  If the
Company elects to redeem the Series    Bonds, it will do so at a
redemption price equal to the greater of (x) one hundred percent (100%) of
the principal amount of the Series    Bonds being redeemed, plus
accrued interest thereon to the redemption date, or (y) as determined by
the Quotation Agent, the sum of the present value of the remaining scheduled
payments of principal and interest on the Series    Bonds to be
redeemed (not including any portion of payments of interest accrued as of the
redemption date) discounted to the redemption date on a semi-annual basis at
the Adjusted Treasury Rate plus
                        
(     ) basis points, plus accrued interest to the
redemption date. The redemption price will be calculated assuming a 360-day
year consisting of twelve 30-day months.

 

The
Company shall notify the Trustee in writing, not less than forty-five (45)
days, or such shorter period as shall be acceptable to the Trustee, of any such
election to redeem.  Such notice shall include the amount of Series   
Bonds to be redeemed, the redemption date and the redemption price.

 

“Adjusted
Treasury Rate” means, with respect to any redemption date, the rate per year
equal to the semi-annual equivalent yield to maturity of the Comparable
Treasury Issue, 

 

7

 

assuming
a price for the Comparable Treasury Issue (expressed as a percentage of its
principal amount) equal to the Comparable Treasury Price for that redemption
date.

 

“Comparable
Treasury Issue” means the United States Treasury security selected by the
Quotation Agent as having a maturity comparable to the remaining term of the Series   
Bonds that would be used, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt
securities of comparable maturity to the remaining term of the Series   
Bonds.

 

“Comparable
Treasury Price” means, with respect to any redemption date:  (i) the
average of the Reference Treasury Dealer Quotations for that redemption date,
after excluding the highest and lowest of the Reference Treasury Dealer
Quotations, or (ii) if the Trustee obtains fewer than four Reference
Treasury Dealer Quotations, the average of all Reference Treasury Dealer
Quotations so received.

 

“Quotation
Agent” means the Reference Treasury Dealer appointed by the Company.

 

“Reference
Treasury Dealer” means a primary U.S. Government securities dealer in New York,
New York selected by the Company.

 

“Reference
Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any redemption date, the average, as determined by the Trustee, of
the bid and asked prices for the Comparable Treasury Issue (expressed in each
case as a percentage of its principal amount) quoted in writing to the Trustee
by that Reference Treasury Dealer at 5:00 p.m., New York City time, on the
third business day preceding that redemption date.

 

Notice
of any redemption will be provided at least 30 days but not more than 60 days
before the redemption date to each holder of the Series    Bonds
to be redeemed.

 

Absent
a default in payment of the redemption price, on and after the redemption date,
interest will cease to accrue on the Series    Bonds or portions
of the Series    Bonds called for redemption.

 

If
less than all of the Series    Bonds are to be redeemed, the
Trustee will select the Series    Bonds to be redeemed by a
method that the Trustee deems fair and appropriate and which may provide for
the selection for the redemption of portions (equal to $1,000 or any multiple
thereof) of the principal amount of the Series    Bonds larger
than $1,000.  Notice of redemption will be mailed, first-class mail
postage prepaid, to each holder of Series    Bonds to be
redeemed at the holder’s address in the register for the Series   
Bonds.  If any Series    Bonds are to be redeemed in part
only, the notice of redemption that relates to that Series   
Bond will state the portion of the principal amount of that Series   
Bond to be redeemed.  In that case, the Company will issue a new Series   
Bond of any authorized denomination, as requested, in an aggregate principal
amount equal to the unredeemed portion of such Series    Bond,
in the name of the holder upon cancellation of the original Series   
Bond.  Series    Bonds or portions of 

 

8

 

Series   
Bonds to be redeemed become due on the redemption date, and interest will cease
to accrue on those Series    Bonds or portions of Series   
Bonds on the redemption date.

 

The
Series    Bonds are not subject to any sinking fund.

 

Except
as provided in this Section 1.05, the Series    Bonds are
not subject to redemption under any provisions of the Indenture.

 

SECTION 1.06.  Effect of Event of Default.  If an Event
of Default shall have occurred and be continuing, the principal of the Series   
Bonds may be declared due and payable in the manner and with the effect
provided in the Indenture.

 

SECTION 1.07.  Payment Date Not a Business Day.  If any
redemption or maturity date for principal, premium or interest with respect to
the Series    Bonds shall be (i) a Sunday or a legal
holiday, or (ii) a day on which banking institutions are authorized
pursuant to law to close and on which the corporate trust offices of the
Trustee in Minnesota or New Jersey are not open for business, then the payment
thereof may be made on the next succeeding day not a day specified in (i) or
(ii) with the same force and effect as if made on the specified payment
date and no interest shall accrue for the period after the specified payment
date.

 

SECTION 1.08.  Amendment and Restatement of Mortgage
Indenture.  Each holder of a Series   
Bond, solely by virtue of its acquisition thereof, including as an owner of a
book-entry interest therein, shall have and be deemed to have consented, without
the need for any further action or consent by such holder, to the amendment and
restatement of the Original Indenture in substantially the form set forth in
Schedule C appended to the Fifteenth Supplemental Indenture dated as of September 1,
2007 (the “Amended and Restated Indenture”), with such additions, deletions,
and other changes made to such form prior to the time of such amendment and
restatement (“Future Changes”) (1) that add to the covenants of the
Company in the Amended and Restated Indenture, or surrender rights or powers of
the Company therein, for the benefit of the holders of the outstanding bonds
issued under the Original Indenture, (2) as shall be requested by the
Trustee and its counsel, (3) as may be requested by the New Hampshire Public
Utilities Commission or other regulatory authority having jurisdiction over the
Company, or (4) otherwise, as shall be proposed by the Company after the
date of the execution and delivery of this Supplemental Indenture, provided that (a) in the case of any Future Change
described in clause (4), such Future Change is not, in the reasonable
judgment of the Company, inconsistent with the fundamental structure and terms
of the Amended and Restated Indenture, and (b) in the case of any Future
Change described in clause (3) or (4), such Future Change does not, in the
reasonable judgment of the Company, adversely affect in any material respect
the interests of the holders of the bonds issued under the Original Indenture.

 

The
Amended and Restated Indenture described in this Section 1.08 refers to a
planned future amendment and restatement of the terms of the Original Indenture
substantially in their entirety.  No
portion of the Amended and Restated Indenture is in effect as of the date of
this Supplemental Indenture.  To become
effective under the existing Indenture, most of the changes in the Amended and
Restated Indenture require the consent of the holders of not less than a
majority in principal amount of all bonds of the Company then outstanding under
the Indenture.  

 

9

 

These
changes will become effective as soon as the Company receives the required
majority consent.  The remaining changes
require the consent of the holders of 100% in principal amount of all bonds of
the Company then outstanding under the Indenture.  As a result, these remaining changes will not
become effective until the Company receives the required unanimous
consent.   Accordingly, the Amended and
Restated Indenture, including any Future Changes contemplated by this Section 1.08,
will not be in effect until the Company receives the required majority consent
described above, and until the Amended and Restated Indenture is duly executed
and acknowledged by the Company and the Trustee of the existing First Mortgage
Indenture, with the changes requiring the unanimous consent described above
taking effect automatically thereafter when such consent is obtained.

 

ARTICLE 2

MISCELLANEOUS PROVISIONS

 

SECTION 2.01.  Recitals.  The recitals in this
Supplemental Indenture shall be taken as recitals by the Company alone, and
shall not be considered as made by or as imposing any obligation or liability
upon the Trustee, nor shall the Trustee be held responsible for the legality or
validity of this Supplemental Indenture, and the Trustee makes no covenants or
representations, and shall not be responsible, as to or for the effect,
authorization, execution, delivery or recording of this Supplemental Indenture,
except as expressly set forth in the Original Indenture.  The Trustee
shall not be taken impliedly to waive by this Supplemental Indenture any right
it would otherwise have.

 

SECTION 2.02.  Benefits of Supplemental Indenture.
 Nothing in this Supplemental Indenture, expressed or implied, is intended
or shall be construed to confer upon, or give to, any person, firm or
corporation, other than the parties hereto and the holders of the Series   
Bonds, any right, remedy or claim under or by reason of the Indenture or any
covenant, condition or stipulation thereof; and the covenants, stipulations and
agreements in the Indenture contained are and shall be for the sole and
exclusive benefit of the parties hereto, their successors and assigns, and
holders of the bonds.

 

SECTION 2.03.  Effect of Supplemental Indenture.
 This Supplemental Indenture is executed, shall be construed as and is
expressly stated to be an indenture supplemental to the Original Indenture and
shall form a part of the Indenture; and the Original Indenture, as supplemented
and amended by this Supplemental Indenture, is hereby confirmed and adopted by
the Company as its obligation.  All terms used in this Supplemental
Indenture shall be taken to have the meaning specified in the Original
Indenture, except in cases where the context clearly indicates otherwise.

 

SECTION 2.04.  Termination.  This Supplemental
Indenture shall become void when the Indenture shall be void.

 

SECTION 2.05.  Trust Indenture Act.  If and to
the extent that any provision of this Supplemental Indenture limits, qualifies
or conflicts with any of the applicable provisions of Sections 310 to 317,
inclusive, of the Trust Indenture Act of 1939, as amended, such required
provision shall control.

 

10

 

SECTION 2.06.  Counterparts.  This Supplemental
Indenture may be simultaneously executed in any number of counterparts, each of
which shall be deemed an original; and all said counterparts executed and
delivered, each as an original, shall constitute but one and the same
instrument, which shall for all purposes be sufficiently evidenced by any such
original counterpart.

 

SECTION 2.07.  Notices.  Any notice to the
Trustee under any provision of this Supplemental Indenture shall be
sufficiently given if served personally upon a responsible officer of the
Trustee or mailed by registered or certified mail, postage prepaid, addressed
to the Trustee at its corporate trust office, which is U.S. Bank National
Association, 21 South Street, Third Floor, Morristown, New Jersey 07960 as
of the date hereof.  The Trustee shall notify the Company from time to
time of any change in the address of its corporate trust office.

 

SECTION 2.08.  Definitions.  The use of the
terms and expressions herein is in accordance with the definitions, uses and
construction contained in the Original Indenture and the form of Series   
Bond attached hereto as Schedule A.

 

IN
WITNESS WHEREOF, PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE has caused this
instrument to be executed and its corporate seal to be hereto affixed, by its
officers, thereunto duly authorized, and U.S. BANK NATIONAL ASSOCIATION has
caused this instrument to be executed by its officers thereunto duly
authorized, all as of the day and year first above written but actually executed
on
                        .

 

 

	
   

  	
  PUBLIC
  SERVICE COMPANY OF NEW HAMPSHIRE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

CORPORATE
SEAL

 

 

Attest:

 

 

	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  

 

11

 

	
  Signed,
  sealed and delivered by

  	
   

  
	
  Public
  Service Company of New

  	
   

  
	
  Hampshire
  in the presence of us:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Witnesses

  	
   

  

 

12

 

	
  STATE
  OF 

  	
   

  	
  )

  	
   

  
	
   

  	
   

  	
  )

  	
  ss:

  
	
  COUNTY
  OF 

  	
   

  	
  )

  	
   

  

 

Then
personally appeared before me
                        ,
                        ,
and
                        ,
                        ,
of Public Service Company of New Hampshire, a New Hampshire corporation, and
severally acknowledged the foregoing instrument to be their free act and deed
in their said capacities and the free act and deed of said corporation.

 

Witness
my hand and notarial seal this      day of
                        ,
at                         ,
                        .

 

	
   

  	
  Name:
     
              

  
	
   

  	
  Notary
  Public 

  
	
   

  	
  My
  Commission Expires  

  

 

(Notarial
Seal)

 

13

 

	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION  

  as Trustee as aforesaid

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Attest:

 

	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  

 

	
  Signed
  and delivered by

  	
   

  
	
  U.S.
  Bank National Association

  	
   

  
	
  in
  the presence of us:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Witnesses

  	
   

  

 

14

 

	
  STATE
  OF NEW JERSEY

  	
   

  	
  )

  	
   

  
	
   

  	
   

  	
  )

  	
  ss:
  Morristown

  
	
  COUNTY
  OF MORRIS

  	
   

  	
   

  	
   

  

 

Then
personally appeared before me
                        ,
                        
of U.S. Bank National Association, a national banking association, and
acknowledged the foregoing instrument to be her free act and deed in her said
capacity and the free act and deed of said association.

 

Witness
my hand and notarial seal this
           day of
          ,
       , at Morristown, New Jersey.

 

 

	
   

  	
  Name:   

  
	
   

  	
  Notary
  Public 

  
	
   

  	
  My
  Commission Expires 

  

 

(Notarial
Seal)

 

15

 

SCHEDULE A

(FORM OF FACE OF SERIES    BONDS)

 

THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A
DEPOSITORY.  THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN
THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE ONLY IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND HEREIN, AND NO TRANSFER OF
THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE
DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO
THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE REGISTERED
EXCEPT IN LIMITED CIRCUMSTANCES.

 

Unless
this Global Security is presented by an authorized representative of The
Depository Trust Company, a New York corporation (“DTC”), to Public Service
Company of New Hampshire 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.

 

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

FIRST MORTGAGE BOND, SERIES

PRINCIPAL DUE

 

CUSIP
No.

 

	
  No. 1

  	
   

  	
  $

  

 

FOR
VALUE RECEIVED, PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE, a corporation
organized and existing under the laws of the State of New Hampshire
(hereinafter called the “Company”, which term includes any successor
corporation under the Indenture), hereby promises to pay to Cede &
Co., or registered assigns, subject to the conditions set forth herein, the
principal sum of
                        
                        
Dollars ($                        ),
on
                        ,
and to pay interest on said sum semiannually in arrears, on
                        
and                         
in each year (each, an “Interest Payment Date”) (except that the final Interest
Payment Date will be
                        ),
commencing on                         
at the rate of       % per annum, until the
Company’s obligation with respect to said principal sum shall be paid or made
available for payment, and at the rate of       %
per annum on any overdue principal and premium and on any overdue installment
of interest.

 

A-1

 

This
Series    Bond shall bear interest as aforesaid from, and including,
the date of original issuance to, and excluding, the first Interest Payment
Date and then from, and including, the immediately preceding Interest Payment
Date to which interest has been paid or duly provided for to, but excluding,
the next Interest Payment Date or the maturity date, as the case may be.  The amount of interest payable will be
computed on the basis of a 360-day year consisting of twelve 30-day months.

 

In
any case where any Interest Payment Date, maturity or redemption date is not a Business
Day, then payment of principal and interest, if any, or principal and premium,
if any, payable on such date will be made on the next succeeding day which is a
Business Day (and without any interest or other payment in respect of any such
delay), in each case with the same force and effect as if made on such date.
 A “Business Day” shall mean any day, except a (i) Sunday or a legal
holiday, or (ii) a day on which banking institutions are authorized
pursuant to law to close and on which the corporate trust offices of the
Trustee in Minnesota or New Jersey are not open for business.

 

Payment
of the principal of and any interest on this Series    Bond will
be made at the corporate trust office of the Trustee at U.S. Bank National
Association in Morristown, New Jersey or the corporate trust office of its
successors, in any coin or currency of the United States of America which at
the time of payment is legal tender for the payment of public and private
debts.  The interest on this Series    Bond shall be payable
without presentation, and only to or upon the  person in whose name the Series   
Bonds are registered at the close of business on the Business Day prior to each
Interest Payment Date.

 

The
Company has initially designated DTC as the depository for this Series   
Bond issued in the form of a Global Security.  For as long as this Series   
Bond or any portion hereof is in the form of a Global Security, and
notwithstanding the previous paragraph, all payments of interest, principal and
other amounts in respect of this Series    Bond shall be made to
DTC or its nominee in accordance with its applicable policies and procedures,
in the coin or currency specified above.

 

Reference
is hereby made to the further provisions of this Series    Bond
set forth on the reverse hereof, including without limitation provisions in
regard to the redemption and the registration of transfer and exchangeability
of this Series    Bond, and such further provisions shall for
all purposes have the same effect as though fully set forth in this place.

 

As
set forth in the Supplemental Indenture establishing the terms and
series of the Bonds of this series, each holder of a Series   
Bond, solely by virtue of its acquisition thereof, including as an owner of a
book-entry interest therein, shall have and be deemed to have consented,
without the need for any further action or consent by such holder, to the
amendment and restatement of the Original Indenture in substantially the form
set forth in Schedule C appended to the Fifteenth Supplemental Indenture
dated as of September 1, 2007 (the “Amended and Restated Indenture”), with
such additions, deletions, and other changes made to such form prior to the
time of such amendment and restatement (“Future Changes”) (1) that add to
the covenants of the Company in the Amended and Restated Indenture, or
surrender rights or powers of the Company therein, for the benefit of the
holders of the outstanding bonds issued under the 

 

A-2

 

Original
Indenture, (2) as shall be requested by the Trustee and its counsel, (3) as
may be requested by the New Hampshire Public Utilities Commission or other
regulatory authority having jurisdiction over the Company, or (4) otherwise,
as shall be proposed by the Company after the date of the execution and
delivery of the Supplemental Indenture, provided that (a) in
the case of any Future Change described in clause (4), such Future Change is
not, in the reasonable judgment of the Company, inconsistent with the
fundamental structure and terms of the Amended and Restated Indenture, and (b) in
the case of any Future Change described in clause (3) or (4), such Future
Change does not, in the reasonable judgment of the Company, adversely affect in
any material respect the interests of the holders of the bonds issued under the
Original Indenture.

 

This
Series    Bond shall not become or be valid or obligatory until
the certificate of authentication hereon shall have been signed by U.S. Bank
National Association (hereinafter with its successors as defined in the
Indenture (as defined on the reverse hereof), generally called the Trustee), or
by such a successor.

 

[The remainder of this page left blank intentionally.]

 

A-3

 

IN
WITNESS WHEREOF, Public Service Company of New Hampshire has caused this Series   
Bond to be executed in its corporate name and on its behalf by its
                                   
by his signature or a facsimile thereof, and its corporate seal to be affixed
or imprinted hereon and attested by the manual or facsimile signature of its
                                                .

 

Dated
as of

 

	
  PUBLIC
  SERVICE COMPANY OF NEW HAMPSHIRE

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name

  	
   

  
	
  Title:

  	
   

  

 

[FORM OF TRUSTEE’S CERTIFICATE]

 

U.S.
Bank National Association hereby certifies that this Series   
Bond is one of the bonds described in the within mentioned Indenture.

 

	
  U.S.
  BANK NATIONAL ASSOCIATION,

  	
   

  
	
  TRUSTEE

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:
  Authorized Signatory

  	
   

  

 

A-4

 

[FORM OF REVERSE OF SERIES    BOND]

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

First Mortgage Bond, Series   , due

 

This
Series    Bond is one of a series of bonds known as the “First
Mortgage Bonds, Series   ” of the Company, initially limited to
                        
                        
Dollars ($                        )
in aggregate principal amount, and issued under and pursuant to a First
Mortgage Indenture between the Company and U.S. Bank National Association as
successor to Wachovia Bank, National Association and by merger to First Union
National Bank, formerly known as First Fidelity Bank, National Association, New
Jersey, successor to Bank of New England, National Association (formerly known
as New England Merchants National Bank), and to New Bank of New England,
National Association, as Trustee, dated as of August 15, 1978, as amended,
and pursuant to which U.S. Bank, National Association is now Successor Trustee
(said First Mortgage Indenture (i) as amended by the Tenth Supplemental
Indenture thereto, being hereinafter generally called the “Original Indenture,”
and (ii) together with all indentures expressly stated to be supplemental
thereto, and each and every other instrument including the Supplemental
Indenture pursuant to which the Series    Bonds are being
issued, being hereinafter generally called the “Indenture”), and together with
all bonds of all series now outstanding or hereafter issued under the
Indenture being equally and ratably secured (except as any sinking or other
analogous fund, established in accordance with the provisions of the Indenture,
may afford additional security for the bonds of any particular series) by the
Indenture, to which Indenture (executed counterparts of which are on file at
the corporate trust office of the Trustee in Morristown, New Jersey) reference
is hereby made for a description of the nature and extent of the security, the
rights thereunder of the holders of bonds issued and to be issued thereunder,
the rights, duties and immunities thereunder of the Trustee, the rights and
obligations thereunder of the Company, and the terms and conditions upon which
Bonds of this series, and bonds of other series, are issued and are to be
issued; but neither the foregoing reference to the Indenture nor any provision
of this Series    Bond or of the Indenture shall affect or
impair the obligation of the Company, which is absolute, unconditional and
unalterable, to pay at the maturities herein provided the principal of and
interest on this Series    Bond as herein provided.

 

The
Series    Bonds shall be initially issued in the form of one or
more global securities (the “Global Securities”).  Each Global Security
will be deposited with, or on behalf of, The Depository Trust Company, as
depository (“DTC”), and registered in the name of Cede & Co., a
nominee of DTC.  In the event certificated bonds in definitive form are
issued in exchange for the Global Securities they are issuable only in
registered form without coupons in denominations of $1,000 and any integral
multiple thereof.

 

The
Series    Bonds, while in the form of Global Securities, may not
be transferred except as a whole (1) by DTC to a nominee of DTC or (2) by
a nominee of DTC to DTC or another nominee of DTC or (3) by DTC or any
such nominee to a successor of DTC or a nominee of such successor.  If (1) DTC
is at any time unwilling or unable to continue as depository and a successor
depository is not appointed by the Company within ninety days or (2) there
shall have occurred and be continuing after any applicable grace periods an
Event of Default under the 

 

A-5

 

Indenture
with respect to the Series    Bonds represented by such Global
Security, the Company will issue certificated bonds in definitive registered form
in exchange for the Global Securities representing the Series   
Bonds.

 

The
Company may at any time and in its sole discretion determine not to have any Series   
Bonds in registered form represented by one or more Global Securities and, in
such event, will issue certificated bonds in definitive form in exchange for
the Global Securities representing the Series    Bonds.  In
any such instance, an owner of a beneficial interest in the Global Securities
will be entitled to physical delivery in definitive form of certificated bonds
represented by the Global Securities equal in principal amount to such
beneficial interest and to have such certificated bonds registered in its name.

 

In
the event certificated bonds are issued in exchange for the Global Securities,
the Series    Bonds may be surrendered for registration of
transfer as provided in Section 2.8 of the Original Indenture at the
corporate trust office of the Trustee at U.S. Bank National Association in
Morristown, New Jersey or the corporate trust offices of its successors, and
may be surrendered at said office for exchange for a like aggregate principal
amount of Series    Bonds of other authorized denominations.
 Notwithstanding the provisions of Section 2.7 of the Original
Indenture, no charge, except for taxes or other governmental charges, shall be
made by the Company for any registration of transfer of Series   
Bonds or for the exchange of any Series    Bonds for such bonds
of other authorized denominations.

 

The
Series    Bonds are subject to redemption, in whole or in part,
at the option of the Company at any time.  If the Company elects to redeem
the Series    Bonds, it will do so at a redemption price equal
to the greater of (x) one hundred percent (100%) of the principal amount
of Series    Bonds being redeemed, plus accrued interest thereon
to the redemption date, or (y) as determined by the Quotation Agent, the
sum of the present value of the remaining scheduled payments of principal and
interest on the Series    Bonds to be redeemed (not including
any portion of payments of interest accrued as of the redemption date)
discounted to the redemption date on a semi-annual basis at the Adjusted
Treasury Rate plus
                        
(   ) basis points, plus accrued interest to the redemption
date. The redemption price will be calculated assuming a 360-day year
consisting of twelve 30-day months.

 

The
Company shall notify the Trustee in writing, not less than forty-five (45)
days, or such shorter period as shall be acceptable to the Trustee, of any such
election to redeem.  Such notice shall include the amount of Series   
Bonds to be redeemed, the redemption date and redemption price.

 

“Adjusted
Treasury Rate” means, with respect to any redemption date, the rate per year
equal to the semi-annual equivalent yield to maturity of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed
as a percentage of its principal amount) equal to the Comparable Treasury Price
for that redemption date.

 

“Comparable
Treasury Issue” means the United States Treasury security selected by the
Quotation Agent as having a maturity comparable to the remaining term of the Series   
Bonds that would be used, at the time of selection and in accordance with
customary financial practice, 

 

A-6

 

in
pricing new issues of corporate debt securities of comparable maturity to the
remaining term of the Series    Bonds.

 

“Comparable
Treasury Price” means, with respect to any redemption date:  (i) the
average of the Reference Treasury Dealer Quotations for that redemption date,
after excluding the highest and lowest of the Reference Treasury Dealer
Quotations, or (ii) if the Trustee obtains fewer than four Reference
Treasury Dealer Quotations, the average of all Reference Treasury Dealer
Quotations so received.

 

“Quotation
Agent” means the Reference Treasury Dealer appointed by the Company.

 

 “Reference Treasury Dealer” means a primary
U.S. Government securities dealer in New York, New York selected by the
Company.

 

“Reference
Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any redemption date, the average, as determined by the Trustee, of
the bid and asked prices for the Comparable Treasury Issue (expressed in each
case as a percentage of its principal amount) quoted in writing to the Trustee
by that Reference Treasury Dealer at 5:00 p.m., New York City time, on the
third business day preceding that redemption date.

 

Notice
of any redemption will be provided at least 30 days but not more than 60 days
before the redemption date to each holder of the Series    Bonds
to be redeemed.

 

Absent
a default in payment of the redemption price, on and after the redemption date,
interest will cease to accrue on the Series    Bonds or portions
of the Series    Bonds called for redemption.

 

If
less than all of the Series    Bonds are to be redeemed, the
Trustee will select the Series    Bonds to be redeemed by a
method that the Trustee deems fair and appropriate and which may provide for
the selection for the redemption of portions (equal to $1,000 or any multiple
thereof) of the principal amount of the Series    Bonds larger
than $1,000.  Notice of redemption will be mailed, first-class mail
postage prepaid, to each holder of Series    Bonds to be
redeemed at the holder’s address in the register for the Series   
Bonds.  If any Series    Bonds are to be redeemed in part
only, the notice of redemption that relates to that Series   
Bond will state the portion of the principal amount of that Series   
Bond to be redeemed.  In that case, the Company will issue new Series   
Bonds of any authorized denomination, as requested, in an aggregate principal
amount equal to the unredeemed portion of such Series    Bond,
in the name of the holder upon cancellation of the original Series   
Bond.  Series    Bonds or portions of Series   
Bonds to be redeemed become due on the redemption date, and interest will cease
to accrue on those Series    Bonds or portions of Series   
Bonds on the redemption date.

 

The
Series    Bonds are not subject to any sinking fund.

 

If
the Series    Bonds are called in whole or in part, and if
moneys have been duly deposited or otherwise made available to the Trustee for
redemption hereof, or of the part hereof so called, as required in the
Indenture, this Series    Bond or such called part hereof, shall
be due 

 

A-7

 

and
payable on the date fixed for redemption and thereafter this Series   
Bond, or such called part hereof, shall cease to bear interest on the date
fixed for redemption and shall cease to be entitled to the lien of the
Indenture, and, as respects the Company’s liability hereon, this Series   
Bond, or such called part hereof, shall be deemed to have been paid; but, if
less than the whole principal amount hereof shall be so called, the holder
hereof shall be entitled, in addition to the sums payable on account of the
part called, to receive, without expense to such holder, upon surrender hereof,
one or more Series    Bonds of this series for an aggregate
principal amount equal to that part of the principal amount hereof not then
called and paid.

 

If
an Event of Default shall have occurred and be continuing, the principal of the
Series    Bonds may be declared due and payable in the manner
and with the effect provided in the Indenture.

 

The
Indenture contains provisions permitting the Company and the Trustee to effect,
by supplemental indenture, certain modifications of the Indenture without any
consent of the holders of the bonds, and to effect certain other modifications
of the Indenture, and of the rights of the holders of the bonds, with the
consent of the holders of not less than a majority in aggregate principal
amount of all bonds issued under the Indenture at the time outstanding, or in
case one or more, but less than all, of the series of said bonds then
outstanding are affected, with the consent of the holders of not less than a
majority in aggregate principal amount of said outstanding bonds of each series affected.

 

No
reference herein to the Indenture and no provision herein or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and
unconditional, to pay the principal of and any premium and interest, including
overdue interest, on this Series    Bond at the time, place and
rate, and in the coin or currency, herein prescribed.

 

This
Series    Bond shall be exchangeable for securities registered
in the names of holders other than DTC or its nominee only as provided in this
paragraph.  This Series    Bond shall be so exchangeable if
(x) DTC notifies the Company that it is unwilling or unable to continue as
depository or at any time ceases to be a clearing agency registered as such
under the Securities Exchange Act of 1934, (y) the Company executes and
delivers to the Trustee an Officers’ Certificate providing that this Series   
Bond shall be so exchangeable or (z) there shall have occurred and be
continuing an Event of Default with respect to the Series   
Bonds.  Certificated securities so issued in exchange for the Global
Security representing the Series    Bonds shall be of the same
series, have the same interest rate, if any, and maturity and have the same
terms as the Global Security representing the Series    Bonds,
in authorized denominations and in the aggregate having the same principal
amount as the Global Security representing the Series    Bonds
and registered in such names as the depository for such Global Security
representing the Series    Bonds shall direct.

 

Series   
Bonds not represented by a Global Security are transferable by the registered
owner hereof upon surrender hereof at the corporate trust office of the
Trustee, together with a written instrument of transfer in approved form,
signed by the owner or his duly authorized attorney, and a new Series   
Bond or Bonds for a like principal amount will be issued in exchange, all as
provided in the Indenture.  Prior to due presentment for registration of
transfer 

 

A-8

 

of
this Bond, the Company and the Trustee may deem and treat the registered owner
hereof as the absolute owner hereof, whether or not such Series   
Bond shall be overdue, for the purpose of receiving payment and for all other
purposes, and neither the Company nor the Trustee shall be affected by any
notice to the contrary.

 

Series   
Bonds not represented by a Global Security are exchangeable at the option of
the registered holder hereof upon surrender hereof, at the corporate trust
office of the Trustee in Morristown, New Jersey or the corporate trust offices
of its successors, for an equal principal amount of bonds of this
series of other authorized denominations, in the manner and on the terms
provided in the Indenture.

 

Notwithstanding
the provisions of Section 2.7 of the Original Indenture, no charge, except
for taxes or other governmental charges, shall be made by the Company for any
registration of transfer of Series    Bonds or for the exchange
of any Series    Bonds for such bonds of other authorized
denominations.

 

Neither
the failure to give any notice nor any defect in any notice given to the holder
of the Global Securities or Series    Bonds not represented by a
Global Security, will affect the sufficiency of any notice given to any other
holder.

 

No
recourse shall be had for the payment of the principal of or premium, if any,
or interest on this Series    Bond, or for any claim based
hereon, or otherwise in respect hereof or of the Indenture, to or against any
incorporator or against any stockholder, director or officer, past, present or
future, as such, of the Company or any affiliate of the Company, or of any
predecessor or successor company, either directly or through the Company, or
such predecessor or successor company or any trustee, receiver or assignee or
otherwise, under any constitution, or statute or rule of law, or by the
enforcement of any assessment or penalty, or otherwise, all such liability of
incorporators, stockholders, directors or officers, as such, being waived and
released by the holder and owner hereof by the acceptance of this Series   
Bond and as part of the consideration for the issuance hereof and being
likewise waived and released by the terms of the Indenture.

 

[END OF FORM OF REVERSE OF SERIES    BOND]

 

A-9

 

SCHEDULE B

 

Description of Certain Properties

Acquired

Since
                

 

The
following deeds and conveyances, recorded in the Registries of Deeds in the
Counties in New Hampshire indicated, contain descriptions of certain properties
acquired in fee simple by the Company since
                        .

 

	
   

  	
  Grantor

  	
   

  	
  Date

  	
   

  	
  Book/Page

  	
   

  	
  County/Town

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

B-1

 

ENDORSEMENT

 

U.S.
Bank National Association, Trustee, being the mortgagee in the foregoing
Supplemental Indenture, hereby consents to the cutting of any timber standing
upon any of the lands covered by said Supplemental Indenture and to the sale of
any such timber so cut and of any personal property covered by said
Supplemental Indenture to the extent, but only to the extent, that such sale is
permitted under the provisions of the Original Indenture as referred to in, and
as amended by, the Supplemental Indenture thereto dated as of
                        .

 

	
  U.S.
  BANK NATIONAL ASSOCIATION,

  	
   

  
	
  as
  Trustee as aforesaid

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  Signed
  and acknowledged

  	
   

  
	
  on
  behalf of U.S. Bank National Association

  	
   

  
	
  in
  the presence of us:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  WitnessesExhibit 4.2(D)

 

WESTERN MASSACHUSETTS ELECTRIC COMPANY

 

and

 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

 

as TRUSTEE

 

 

SUPPLEMENTAL INDENTURE

 

Dated
as of

 

Supplemental
to the Indenture

dated
as of September 1, 2003

 

$                    
Senior Notes, Series    , Due

 

 

SUPPLEMENTAL INDENTURE, dated as of
                    ,
between WESTERN MASSACHUSETTS ELECTRIC COMPANY,
a corporation duly organized and existing under the laws of the Commonwealth of
Massachusetts (the “Company”), and THE BANK OF NEW YORK
MELLON  TRUST COMPANY, N.A.,
formerly known as The Bank of New York Trust Company, N.A. (as successor
trustee to The Bank of New York), a national association, as Trustee under the
Original Indenture referred to below (the “Trustee”).

 

RECITALS OF THE COMPANY

 

The Company has heretofore
executed and delivered to the Trustee an indenture dated as of September 1,
2003 (the “Original Indenture”), to provide for the issuance from time to time
of its debentures, notes or other evidences of indebtedness (the “Senior Notes”),
the form and terms of which are to be established as set forth in Sections 201
and 301 of the Original Indenture.

 

Section 901 of the
Original Indenture provides, among other things, that the Company and the
Trustee may enter into indentures supplemental to the Original Indenture
without the consent of the Holders for, among other things, (a) the
purpose of establishing the form and terms of the Senior Notes of any series as
permitted in Sections 201 and 301 of the Original Indenture, and (b) changing
the provisions of the Original Indenture as they apply to any series created by
such supplemental indenture.

 

The Company has heretofore
executed and delivered to the Trustee the following Supplemental Indentures for
the purpose of creating the following series of bonds:

 

	
   

  	
  Supplemental

  Indenture

  	
   

  	
  Date

  	
   

  	
  Series

  	
   

  	
  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

The Company desires to
create a new series of the Senior Notes in an aggregate principal amount of up
to
$                    
to be designated the “Senior Notes, Series   , Due
        ” (the “Notes”), and all action
on the part of the Company necessary to authorize the issuance of the Notes
under the Original Indenture and this supplemental Indenture has been duly
taken.

 

All acts and things necessary
to make the Notes, when executed by the Company and completed, authenticated
and delivered by the Trustee as provided in the Original Indenture and this
supplemental Indenture, the valid and binding obligations of the Company and to
constitute these presents a valid and binding supplemental indenture and
agreement according to its terms, have been done and performed.

 

 

NOW, THEREFORE, THIS
SUPPLEMENTAL INDENTURE WITNESSETH:

 

That in consideration of the
premises and of the acceptance and purchase of the Notes by the Holders thereof
and of the acceptance of this trust by the Trustee, the Company covenants and
agrees with the Trustee, for the equal and ratable benefit of the Holders of
the Notes, as follows:

 

ARTICLE
ONE

 

Definitions

 

The use of the terms and
expressions herein is in accordance with the definitions, uses and
constructions contained in the Original Indenture and form of the Notes
attached hereto as Exhibit A.

 

ARTICLE
TWO

 

Terms
and Issuance of the Senior Notes, Series   , Due

 

SECTION 201.       Issue of Notes.

 

A series of Senior Notes
which shall be designated the “Senior Notes, Series   , Due
        shall be executed, authenticated and
delivered from time to time in accordance with the provisions of, and shall in
all respects be subject to, the terms and conditions and covenants of, the
Original Indenture and this supplemental Indenture (including the form of the
Note attached hereto as Exhibit A). 
The aggregate principal amount of the Notes which will initially be
authenticated and delivered under this supplemental Indenture shall be
$                    .
Additional Senior Notes, without limitation as to amount, having substantially
the same terms as the Notes (except a different issue date, issue price and
bearing interest from the last Interest Payment Date to which interest has been
paid or duly provided for on the Outstanding Notes, and, if no interest has
been paid, from
                    )
may also be issued by the Company pursuant to this supplemental Indenture
without the consent of the existing Holders of the Notes.  Such additional Senior Notes shall be part of
the same series as the Outstanding Notes.

 

SECTION 202.       Form of Notes; Incorporation of
Terms.

 

The Notes shall be in
substantially the form set forth in Exhibit A attached hereto.  The terms of the Notes contained in such form
are hereby incorporated herein by reference and are made a part of this
supplemental Indenture.

 

SECTION 203.       Global Security; Depositary for Global
Securities.

 

The Notes shall be issued
initially in the form of a Global Security. 
The Depositary for any Global Securities of the series of which the
Notes are a part shall be The Depository Trust Company, New York, New York.

 

2

 

SECTION 204.       Limitiation on Liens.

 

The provisions of Section 1007
of the Original Indenture shall be applicable to the Notes.

 

SECTION 205.       Sale and Leaseback Transactions.

 

The provisions of Section 1012
of the Original Indenture shall be applicable to the Notes.

 

SECTION 206.       Place of Payment.

 

The Place of Payment in
respect of the Notes shall be at the Corporate Trust Office, which, at the date
hereof, is located at 222 Berkeley Street, 2nd Floor, Boston, Massachusetts
02116, Attention:  Corporate Trust Administration.

 

ARTICLE
THREE

 

Miscellaneous

 

SECTION 301.       Execution as Supplemental Indenture.

 

This supplemental Indenture
is executed and shall be construed as an indenture supplemental to the Original
Indenture and, as provided in the Original Indenture, this supplemental
Indenture forms a part thereof.

 

SECTION 302.       Conflict with Trust Indenture Act.

 

If any provision hereof
limits, qualifies or conflicts with another provision hereof which is required
to be included in this supplemental Indenture by any of the provisions of the
Trust Indenture Act, such required provision shall control.

 

SECTION 303.       Effect of Headings.

 

The Article and Section headings
herein are for convenience only and shall not affect the construction hereof.

 

SECTION 304.       Successors and Assigns.

 

All covenants and agreements
by the Company in this supplemental Indenture shall bind its successors and
assigns, whether so expressed or not.

 

SECTION 305.       Separability Clause.

 

In case any provision in
this supplemental Indenture or in the Notes shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

 

3

 

SECTION 306.       Benefits of supplemental Indenture.

 

Nothing in this supplemental
Indenture or in the Notes, express or implied, shall give to any Person, other
than the parties hereto and their successors hereunder and the Holders, any
benefit or any legal or equitable right, remedy or claim under this
supplemental Indenture.

 

SECTION 307.       Recitals.

 

The Trustee shall have no
responsibility for the recitals contained in this supplemental Indenture, all
of which shall be taken as the statements of the Company, or for the validity
or sufficiency of this supplemental Indenture.

 

SECTION 308.       Governing Law.

 

This supplemental Indenture
shall be governed by and construed in accordance with the laws of the State of
New York.

 

SECTION 309.       Execution and Counterparts.

 

This supplemental Indenture
may be executed in any number of counterparts, each of which shall be deemed to
be an original, but all such counterparts shall together constitute but one and
the same instrument.

 

4

 

IN WITNESS WHEREOF, the
parties hereto have caused this supplemental Indenture to be duly executed, all
as of the day and year first above written.

 

	
   

  	
  WESTERN MASSACHUSETTS ELECTRIC  COMPANY  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK MELLON
  TRUST COMPANY, N.A., 

  
	
   

  	
  as Trustee 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title:

  

 

5

 

	
  STATE OF

  	
  ) 

  	
   

  
	
   

  	
  )

  	
  ss.: 

  
	
  COUNTY OF

  	
  )

  	
   

  

 

On the
           day of
                    
,
                    
, before me personally came
                    
, to me known, who, being by me duly sworn, did depose and say that she is the
                    
of Western Massachusetts Electric Company, one of the corporations described in
and which executed the foregoing instrument; and that he signed his name
thereto by authority of the Board of Directors of said corporation.

 

 

	
   

  	
   

  
	
   

  	
  Notary Public Information

  

 

 

	
  COMMONWEALTH OF
  MASSACHUSETTS

  	
  )

  	
   

  
	
   

  	
  )

  	
  ss.: Boston

  
	
  COUNTY OF SUFFOLK

  	
  )

  	
   

  

 

On the
         day of
                    
,                     
, before me personally came
                                          ,
to me known, who, being by me duly sworn, did depose and say that he/she is a
                                
of The Bank of New York Mellon Trust Company, N.A., a national association, one
of the entities described in and which executed the foregoing instrument; and
that he/she signed his/her name thereto by authority of the Board of Directors
of said entity.

 

 

	
   

  	
   

  
	
   

  	
  Notary Public Information

  

 

6

 

EXHIBIT A

 

[Form of Face of Global Security]

 

THIS SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY.  THIS SECURITY IS EXCHANGEABLE FOR SECURITIES
REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE
ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER
OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED
EXCEPT IN LIMITED CIRCUMSTANCES.

 

Unless this certificate is
presented by an authorized representative of The Depository Trust Company, a
New York corporation (“DTC”), to Western Massachusetts Electric 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.

 

WESTERN MASSACHUSETTS ELECTRIC COMPANY

 

SENIOR NOTES, SERIES   , DUE

 

CUSIP NO:

 

	
  No. 1

  	
  $

  

 

WESTERN MASSACHUSETTS
ELECTRIC COMPANY, a corporation duly organized and existing under the laws of
the Commonwealth of Massachusetts (the “Company” which term includes any
successor corporation under the Indenture hereinafter referred to), for value
received, hereby promises to pay to Cede & Co., or registered assigns,
the principal sum of
                    
                    
Dollars
($                    )
on                     ,
        
(the “Final Maturity”), and to pay interest thereon from the date of
original issuance of the Notes or from the most recent Interest Payment Date to
which interest has been paid or duly provided for, semiannually in arrears on
                    
and                     
in each year, commencing
                    ,
at the rate of      % per annum, until the principal
hereof is paid or made available for payment and at the rate of
     % per annum on any overdue principal and premium
and (to the extent that the payment of such interest shall be legally
enforceable) on any overdue installment of interest.

 

The amount of interest
payable for any period other than a complete interest payment period will be
computed on the basis of a 360-day year consisting of twelve thirty day months
and, for any period shorter than a full month, on the basis of  the actual number of days elapsed 

 

 

in such period.  In any case where any Interest Payment Date,
Stated Maturity or Redemption Date is not a Business Day, then payment of
principal and interest, if any, or principal and premium, if any, payable on
such date will be made on the next succeeding day which is a Business Day (and
without any interest or other payment in respect of any such delay), in each
case with the same force and effect as if made on such date.  A “Business Day” shall mean any day, except a
Saturday, a Sunday or a legal holiday in The City of New York on which banking
institutions are authorized or required by law, regulation or executive order to
close.

 

The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as
provided in the Indenture, be paid to the Person in whose name this Security is
registered at the close of business on the Regular Record Date for such
interest, which shall be (1) the Business Day next preceding such Interest
Payment Date if this Security remains in book-entry only form or (2) the
15th calendar day (whether or not a Business Day) next preceding such Interest
Payment Date if this Security does not remain in book-entry only form. Any such
interest not so punctually paid or duly provided for will forthwith cease to be
payable to the Holder on such date and may either be paid to the Person in
whose name this Security 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 Securities 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 Securities 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 any interest on this Security will be made at the
office or agency of the Company maintained for that purpose in the Boston,
Massachusetts, 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 interest may be
made by check mailed to the address of the Person entitled thereto as such
address shall appear in the Security Register.

 

This Security has initially
been issued in the form of a Global Security, and the Company has initially
designated The Depository Trust Company, New York, New York, (the “Depositary,”
which term shall include any successor depositary) as the Depositary for this
Security.  For as long as this Security
or any portion hereof is issued in such form, and notwithstanding the previous
paragraph, all payments of interest, principal and other amounts in respect of
this Security or portion thereof shall be made to the Depositary or its nominee
in accordance with its applicable policies and procedures, in the coin or
currency specified above and as further provided on the reverse hereof.

 

Reference
is hereby made to the further provisions of this Security set forth on the
reverse hereof, 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 on the reverse hereof by manual signature, this Security shall not
be entitled to any benefit under the Indenture or be valid or obligatory for
any purpose.

 

A-2

 

[Form of Reverse of Global Security]

 

WESTERN MASSACHUSETTS ELECTRIC COMPANY

 

SENIOR NOTES, SERIES   , DUE

 

This Security is one of a
duly authorized issue of securities of the Company (herein called the “Securities”),
issued and to be issued in one or more series under an Indenture, dated as of September 1,
2003 as amended and supplemented from time to time and as supplemented by the
supplemental Indenture dated as of
                    
(herein called the “Indenture,” which term shall have the meaning assigned to
it in such instrument), between the Company and The Bank of New York Mellon
Trust Company, N.A., formerly known as The Bank of New York Trust Company, N.A.
(as successor trustee to The Bank of New York), as Trustee (herein called the “Trustee,”
which term includes any successor trustee under Indenture), as to which
Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders and of the
terms upon which the Securities are, and are to be, authenticated and
delivered.  This Security is one of the
series designated on the face hereof, limited initially in aggregate principal
amount to $                    .  The provisions of this Security, together
with the provisions of the Indenture, shall govern the rights, obligations,
duties and immunities of the Holder, the Company and the Trustee with respect
to this Security, provided that, if any provision of this Security conflicts
with any provision of the Indenture, the provision of this Security shall be
controlling to the fullest extent permitted under the Indenture.

 

The Securities of this
series are subject to redemption upon not less than thirty (30) or more than
sixty (60) days’ notice (or such shorter period as is satisfactory to the
Trustee) by mail to the Holders of such securities at their addresses in the
Security Register, at the option of the Company, in whole or in part, from time
to time at a Redemption Price equal to the principal amount of the Securities
being redeemed, plus accrued and unpaid interest thereon to but excluding the
Redemption Date, plus the Make-Whole Premium. 
The “Make-Whole Premium” means an amount determined by the Company equal
to the excess, if any, of (i) the present value of all interest and
principal payments scheduled to become due after the Redemption Date on the
Securities being redeemed (such present value to be determined on the basis of
a discount rate equal to the sum of (a) the Treasury Rate and (b)      
basis points), over (ii) the principal amount of the Securities being
redeemed.  The “Treasury Rate” means,
with respect to the Securities being redeemed, the yield to maturity at the
time of computation of United States Treasury securities with a final maturity
(as compiled and published in the most recent Federal Reserve Statistical
Release H.15 (519) which has become publicly available at least two
Business Days prior to the Redemption Date (or, if such statistical release is
no longer published, any publicly available source or similar market data))
most nearly equal to the remaining average life on the Redemption Date of the
Securities being redeemed; provided, however, that if the period
from the Redemption Date to the maturity date of the Securities being redeemed
is less than one year, the weekly average yield on actually traded United
States Treasury securities adjusted to a constant maturity of one year shall be
used.

 

A-3

 

Except as otherwise provided
in the Indenture, if notice has been given as provided in the Indenture and
funds for the redemption of any Securities (or any portion thereof) called for
redemption shall have been made available on the Redemption Date referred to in
such notice, such Securities (or any portion thereof) will cease to bear
interest on the date fixed for such redemption specified in such notice and the
only right of the Holders of such Securities will be to receive payment of the
Redemption Price.

 

In the event of redemption
of this Security in part only, a new Security or Securities 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.

 

The Securities of this
series will not be subject to any sinking fund.

 

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

 

The Indenture permits, with
certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the
Holders of the 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
majority in principal amount of the Securities at the time Outstanding of all
series to be affected (voting as one class). 
The Indenture also contains provisions permitting the Holders of
specified percentages in principal amount of the Securities of each series at
the time Outstanding, on behalf of the Holders of all 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 Security shall be conclusive and binding upon such Holder
and upon all future Holders of this Security and of any Security 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 Security.

 

No reference herein to the
Indenture and no provision of this Security or of the Indenture shall alter or
impair the obligation of the Company, which is absolute and unconditional, to
pay the principal of and any premium and interest on this Security at the time,
place and rate, and in the coin or currency, herein prescribed.

 

This Security shall be
exchangeable for Securities registered in the names of Persons other than the
Depositary with respect to such series or its nominee only as provided in this
paragraph.  This Security shall be so
exchangeable if (x) the Depositary notifies the Company that it is unwilling
or unable to continue as Depositary for such series or at any time ceases to be
a clearing agency registered as such under the Securities Exchange Act of 1934,
(y) the Company executes and delivers to the Trustee an Officers’
Certificate providing that this Security shall be so exchangeable or (z) there
shall have occurred and be continuing an Event of Default with respect to the
Securities of the series of which this Security is a part.  Securities so issued in exchange for this
Security shall be of the same series, having the same interest rate, if any,
and maturity and having the same terms as this Security, in authorized
denominations and in 

 

A-4

 

the aggregate having the
same principal amount as this Security and registered in such names as the
Depositary for such Global Security shall direct.

 

As provided in the Indenture
and subject to certain limitations therein set forth, the transfer of a
Security of the series of which this Security is a part is registrable in the
Security Register, upon surrender of this Security for registration of transfer
at the office or agency of the Company in any place where the principal of and
any premium and interest on this Security are payable, 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 Securities
of this series and of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

 

The Securities of the series
of which this Security is a part 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, Securities of this series are
exchangeable for a like aggregate principal amount of Securities of this series
and of like tenor of a different authorized denomination, as requested by the
Holder surrendering the same.

 

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 Security 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
Security is registered as the owner hereof for all purposes, whether or not
this Security be overdue, and neither the Company, the Trustee nor any such
agent shall be affected by notice to the contrary.

 

For so long as this Security
is issued in the form of a Global Security, neither the Company nor the Trustee
will have any responsibility with respect to the policies and procedures of the
Depositary or for any notices or other communications among the Depositary, its
direct and indirect participants or the beneficial owners of this Security.

 

Neither the failure to give
any notice nor any defect in any notice given to the Holder of this Security or
any other Security of this series will affect the sufficiency of any notice
given to any other Holder of any Securities of this series.

 

The Indenture provides that
the Company, at its option (a) will be discharged from any and all
obligations in respect of the Securities (except for certain obligations to
register the transfer or exchange of Securities, replace stolen, lost or
mutilated Securities, maintain paying agencies and hold moneys for payment in
trust) or (b) need not comply with certain restrictive covenants of the
Indenture, in each case if the Company deposits, in trust, with the Trustee
money or U.S. Government Obligations which, through the payment of interest
thereon and principal thereof in accordance with their terms, will provide
money, in an amount sufficient to pay all the principal of, and premium, if
any, and interest, if any, on the Securities on the dates 

 

A-5

 

such payments are due in
accordance with the terms of such Securities, and certain other conditions are
satisfied.

 

No recourse shall be had for
the payment of the principal of or the interest on this Security, or for any
claim based hereon, or otherwise in respect hereof, or based on or in respect
of the Indenture or any indenture supplemental thereto, against any trustee,
incorporator, stockholder, officer or director, as such, past, present or
future, of the Company or any successor corporation, either directly or through
the Company or any successor corporation, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for the issuance hereof, expressly
waived and released.

 

This Security shall be
governed by and construed in accordance with the laws of the State of New York.

 

All terms used in this
Security not defined herein which are defined in the Indenture shall have the
meanings assigned to them in the Indenture.

 

A-6

 

IN WITNESS WHEREOF, Western
Massachusetts Electric Company has caused this instrument to be duly executed.

 

Dated:

 

 

WESTERN MASSACHUSETTS ELECTRIC
COMPANY

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

This is one of the
Securities of the series designated therein referred to in the within mentioned
Indenture.

 

Dated:

 

 

THE BANK OF NEW YORK MELLON TRUST
COMPANY, N.A.,

as Trustee

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  

 

A-7

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