Document:

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                                                                     EXHIBIT 4-5

                             ENERGY EAST CORPORATION

                                     Issuer

                                       TO

                            THE CHASE MANHATTAN BANK

                                     Trustee

                               -------------------

                        ___________Supplemental Indenture

                           Dated as of _______, 20___

                               -------------------

                    ___% Junior Subordinated Debt Securities

                                Due ______, 20__

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                                TABLE OF CONTENTS

                                    ARTICLE I

                                   DEFINITIONS

<TABLE>
<S>>                  <C>                                                    <C>
SECTION 1.1           Definition of Terms...................................  2

                                   ARTICLE II

             GENERAL TERMS AND CONDITIONS OF THE JUNIOR SUBORDINATED
                                 DEBT SECURITIES

SECTION 2.1           Designation and Principal Amount......................  6
SECTION 2.2           Stated Maturity.......................................  6
SECTION 2.3           Form and Payment; Minimum Transfer Restriction........  6
SECTION 2.4           Exchange and Registration of Transfer of Junior
                          Subordinated Debt Securities; Restriction on Transfers;
                          Depositary........................................  7
SECTION 2.5           Interest..............................................  9
SECTION 2.6           Direct Action.........................................  9
SECTION 2.7           Subordination......................................... 10

                                   ARTICLE III

              REDEMPTION OF THE JUNIOR SUBORDINATED DEBT SECURITIES

SECTION 3.1           Tax Event or Investment Company Event Redemption......  10
SECTION 3.2           Optional Redemption by Company........................  10
SECTION 3.3           Notice of Redemption..................................  10

                                   ARTICLE IV

                      EXTENSION OF INTEREST PAYMENT PERIOD

SECTION 4.1           Extension of Interest Payment Period..................  11
SECTION 4.2           Notice of Extension...................................  13

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                                    ARTICLE V

                                    EXPENSES

SECTION 5.1           Payment of Expenses...................................  13
SECTION 5.2           Payment Upon Resignation or Removal...................  14

                                   ARTICLE VI

                    FORM OF JUNIOR SUBORDINATED DEBT SECURITY

SECTION 6.1           Form of Junior Subordinated Debt Security.............. 14

                                   ARTICLE VII

              ORIGINAL ISSUE OF JUNIOR SUBORDINATED DEBT SECURITIES

ARTICLE 7.1           Original Issue of Junior Subordinated Debt Securities.  14

                                  ARTICLE VIII

                                  MISCELLANEOUS

ARTICLE 8.1           Ratification of Base Indenture; _______ Supplemental
                          Indenture Controls................................  15
ARTICLE 8.2           Trustee Not Responsible for Recitals .................  15
ARTICLE 8.3           Governing Law.........................................  15
ARTICLE 8.4           Separability..........................................  15
ARTICLE 8.5           Counterparts..........................................  15

EXHIBIT A             ......................................................  17
</TABLE>

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                        _________ SUPPLEMENTAL INDENTURE

      THIS __________ SUPPLEMENTAL INDENTURE, dated as of ________, 20__ (the
"________ Supplemental Indenture"), is between ENERGY EAST CORPORATION, a New
York corporation (the "Company"), and THE CHASE MANHATTAN BANK, as trustee (the
"Trustee") under the Indenture, dated as of ________, 2001, between the Company
and the Trustee, as heretofore supplemented and amended (the "Base Indenture,"
and as further supplemented by this _____ Supplemental Indenture, the
"Indenture").

      WHEREAS, the Company executed and delivered the Base Indenture to the
Trustee to provide for the future issuance of the Company's unsecured junior
subordinated debt securities (the "Debt Securities") to be issued from time to
time in one or more series as might be determined by the Company under the
Indenture, in an unlimited aggregate principal amount which may be authenticated
and delivered as provided in the Base Indenture;

      WHEREAS, pursuant to the terms of the Base Indenture, the Company desires
to provide for the establishment of a series of its Debt Securities, to be known
as its ___% Junior Subordinated Debt Securities due ___________, 20__ (the
"Junior Subordinated Debt Securities"), the form and substance of such Junior
Subordinated Debt Securities and the terms, provisions and conditions thereof to
be set forth as provided in the Base Indenture and this ______ Supplemental
Indenture;

      [WHEREAS, the Company desires that this series of Junior Subordinated Debt
Securities be originally issued on ___________, 20__ pursuant to the Indenture
and sold pursuant to the Underwriting Agreement (as defined below);]

      [WHEREAS, Energy East Capital Trust ___, a Delaware statutory business
trust (the "Trust"), has offered to the purchasers (the "Underwriters") named in
Schedule I to the Underwriting Agreement, dated ___________, 20__ (the
"Underwriting Agreement"), among the Underwriters, the Trust and the Company
$_________ aggregate liquidation amount of its ___% Capital Securities (the
"Capital Securities"), representing undivided beneficial interests in the assets
of the Trust and proposes to invest the proceeds from the sale of the Capital
Securities, together with the proceeds of the sale by the Trust to the Company
of $________ aggregate liquidation amount of its Common Securities, in $________
aggregate principal amount of the Junior Subordinated Debt Securities;] and

      WHEREAS, the Company has requested that the Trustee execute and deliver
this ______ Supplemental Indenture and all requirements necessary to make this
______ Supplemental Indenture a valid instrument in accordance with its terms,
and to make the Junior Subordinated Debt Securities, when executed by the
Company and authenticated and delivered by the Trustee, the valid obligations of
the Company, have been performed, and the execution and delivery of this ______
Supplemental Indenture has been duly authorized in all respects;

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      NOW, THEREFORE, in consideration of the purchase and acceptance of the
Junior Subordinated Debt Securities by the Trust, and for the purpose of setting
forth, as provided in the Base Indenture, the form and substance of the Junior
Subordinated Debt Securities and the terms, provisions and conditions thereof,
the Company covenants and agrees with the Trustee as follows:

                                    ARTICLE I

                                   DEFINITIONS

      1.1   DEFINITION OF TERMS. For all purposes of this ______ Supplemental
Indenture, except as otherwise expressly provided or unless the context
otherwise requires:

            (a) the terms not otherwise defined herein which are defined in the
Base Indenture have the same meanings when used in this ______ Supplemental
Indenture;

            (b) the terms defined in this Article have the meanings assigned to
them in this Article and include the plural as well as the singular;

            (c) all other terms used herein which are defined in the Trust
Indenture Act of 1939, as amended, whether directly or by reference therein,
have the meanings assigned to them therein;

            (d) all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with generally accepted accounting
principles in the United States of America, and, except as otherwise herein
expressly provided, the term "generally accepted accounting principles" with
respect to any computation required or permitted hereunder shall mean such
accounting principles as are generally accepted in the United States of America
at the date of such computation; provided, that when two or more principles are
so generally accepted, it shall mean that set of principles consistent with
those in use by the Company;

            (e) a reference to a Section or Article is to a Section or Article
of this ______ Supplemental Indenture unless otherwise stated;

            (f) the words "herein," "hereof" and "hereunder" and other words of
similar import refer to this ______ Supplemental Indenture as a whole and not to
any particular Article, Section or other subdivision;

            (g)  headings are for convenience of reference only and do not
affect interpretation;

            (h) the term "Capital Securities" as used herein means "Preferred
Securities" as such term is used in the Base Indenture and has the meaning
specified in the fourth recital to this ______ Supplemental Indenture; and

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            (i) the following terms have the meanings given to them in the Trust
Agreement [(as defined herein)]: (i) Administrative Trustee, (ii) Business Day,
(iii) Closing Date, (iv) Delaware Trustee, (v) Distributions, (vi) Property
Trustee, and (vii) Common Security.

            "ADDITIONAL INTEREST" has the meaning specified in Section 2.5.

            [FIRST ALTERNATIVE - OPTIONAL REDEMPTION - "COMPARABLE TREASURY
ISSUE" means, with respect to any redemption date, the United States Treasury
security selected by the Quotation Agent as having a maturity comparable to the
time period from the redemption date to ___________, 20__ that would be
utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable
maturity to such time period. If no United States Treasury security has a
maturity which is within a period from three months before to three months after
___________, 20__, the two most closely corresponding United States Treasury
securities shall be used as the Comparable Treasury Issue, and the Treasury Rate
shall be interpolated or extrapolated on a straight-line basis, rounding to the
nearest month using such securities.]

            [FIRST ALTERNATIVE - OPTIONAL REDEMPTION - "COMPARABLE TREASURY
PRICE" means, with respect to any redemption date, (A) the average of up to five
Reference Treasury Dealer Quotations for such redemption date, after excluding
the highest and lowest such Reference Treasury Dealer Quotations, or (B) if the
Trustee obtains fewer than five such Reference Treasury Dealer Quotations, the
average of all such Quotations.]

            "COUPON RATE" has the meaning specified in Section 2.5(a).

            "DEBT SECURITIES" has the meaning specified in the first recital to
this ______ Supplemental Indenture.

            "DEFINITIVE DEBT SECURITY CERTIFICATES" means Debt Securities issued
in definitive, fully registered form.

            "EXTENSION PERIOD" has the meaning specified in Section 4.1.

            "GLOBAL DEBT SECURITY" has the meaning specified in Section 2.4(a).

            "INTEREST PAYMENT DATE" has the meaning specified in Section 2.5.

            [OPTIONAL REDEMPTION - "INVESTMENT COMPANY EVENT" means the receipt
by the Trust of an opinion of a nationally recognized independent counsel (an
"Investment Company Act Opinion"), to the effect that, as a result of the
occurrence of a change in law or regulation or a written change in
interpretation or application of law or regulation by any legislative body,
court, governmental agency or regulatory authority (a "Change in 1940 Act Law"),
there is more than an insubstantial risk that the Trust is or

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will be considered an "investment company" that is required to be registered
under the Investment Company Act of 1940, as amended, which Change in 1940 Act
Law becomes effective on or after the initial Closing Date.]

            "JUNIOR SUBORDINATED DEBT SECURITIES" has the meaning specified in
the second recital to this ______ Supplemental Indenture.

            "LIQUIDATION AMOUNT" means the stated amount of $_____ per Capital
Security.

            [FIRST ALTERNATIVE - OPTIONAL REDEMPTION - "OPTIONAL REDEMPTION
MAKE-WHOLE AMOUNT" means an amount equal to the greater of (i) 100% of the
principal amount of the Junior Subordinated Debt Securities or (ii) as
determined by a Quotation Agent as of the redemption date, the sum of the
present value of the scheduled payments of principal and interest on the Junior
Subordinated Debt Securities from the redemption date to ___________, 20__
discounted to the redemption date on a semi-annual basis (assuming a 360-day
year consisting of twelve 30-day months) at a discount rate equal to the
Treasury Rate plus __ basis points.]

            [FIRST ALTERNATIVE - OPTIONAL REDEMPTION - "QUOTATION AGENT" means
____________________ and its respective successors as selected by the Company;
provided, however, that if both of the foregoing shall cease to be a primary
United States Government securities dealer in New York City (a "Primary Treasury
Dealer"), the Company shall substitute therefor another Primary Treasury
Dealer.]

            [OPTIONAL REDEMPTION - "OPTIONAL REDEMPTION PRICE" has the meaning
specified in Section 3.2.]

            "RECORD DATE" has the meaning specified in Section 2.5(a).

            [FIRST ALTERNATIVE - OPTIONAL REDEMPTION - "REFERENCE TREASURY
DEALER" means (i) __________________ and its respective successors; provided,
however, that if either of the foregoing shall cease to be a Primary Treasury
Dealer, the Company shall substitute therefor another Primary Treasury Dealer;
and (ii) up to three other Primary Treasury Dealers selected by the Trustee
after consultation with the Company.]

            [FIRST ALTERNATIVE - OPTIONAL REDEMPTION - "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 such Reference
Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day
preceding such redemption date.]

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            [FIRST ALTERNATIVE - OPTIONAL REDEMPTION - "SPECIAL EVENT REDEMPTION
MAKE-WHOLE AMOUNT" means an amount equal to the greater of (i) 100% of the
principal amount of the Junior Subordinated Debt Securities or (ii) as
determined by a Quotation Agent as of the redemption date, the sum of the
present value of scheduled payments of principal and interest on the Junior
Subordinated Debt Securities from the redemption date to ___________, 20__,
discounted to the redemption date on a semi-annual basis (assuming a 360-day
year consisting of twelve 30-day months) at a discount rate equal to (a) the
Treasury Rate plus __ basis points before ___________, 20__, and (b) the
Treasury Rate plus __ basis points if on or after such date.]

            [OPTIONAL REDEMPTION - "SPECIAL EVENT REDEMPTION PRICE" has the
meaning specified in Section 3.1.]

            [OPTIONAL REDEMPTION - "TAX EVENT" means the receipt by the Company
and the Trust of an opinion of independent tax counsel experienced in such
matters ("Tax Event Opinion"), to the effect that, as a result of (a) any
amendment to, change in or announced prospective change in the laws (or any
regulations thereunder) of the United States or any political subdivision or
taxing authority thereof or therein, or (b) any official administrative
written decision, pronouncement or action, or judicial decision interpreting
or applying such laws or regulations, which amendment or change is effective
or which proposed change, pronouncement, decision or action is announced on
or after the Closing Date, there is more than an insubstantial risk that (i)
the Trust is, or will be within 90 days of the date of such opinion, subject
to the United States federal income tax with respect to income received or
accrued on the Junior Subordinated Debt Securities, (ii) interest payable to
the Trust by the Company on the Junior Subordinated Debt Securities is not,
or within 90 days of the date of such opinion will not be, deductible, in
whole or in part, by the Company for United States federal income tax
purposes, or (iii) the Trust is, or will be within 90 days of the date of
such opinion, subject to a material amount of other taxes, duties or other
governmental charges.]

            [FIRST ALTERNATIVE - OPTIONAL REDEMPTION - "TREASURY RATE" means (i)
the yield, under the heading which represents the average for the immediately
preceding week, appearing in the most recently published statistical release
designated "H.15(519)" or any successor publication which is published weekly by
the Federal Reserve and which establishes yields on actively traded United
States Treasury securities adjusted to constant maturity under the caption
"Treasury Constant Maturities," for the maturity corresponding to the time
period from the redemption date to ___________, 20__ (if no maturity is within
three months before or after such time period, yields for the two published
maturities most closely corresponding to such time period shall be determined
and the Treasury Rate shall be interpolated or extrapolated from such yields on
a straight-line basis, rounding to the nearest month) or (ii) if such release
(or any successor release) is not published during the week preceding the
calculation date or does not contain such yields, the rate per annum equal to
the semi-annual equivalent yield to maturity of the Comparable Treasury Issue,
calculated using a price for the Comparable Treasury Issue (expressed as a
percentage of its principal

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amount) equal to the Comparable Treasury Price for such redemption date. The
Treasury Rate shall be calculated on the third Business Day preceding the
redemption date.]

            ["TRUST" has the meaning specified in the fourth recital to this
______ Supplemental Indenture.]

            ["TRUST AGREEMENT" means the Amended and Restated Trust Agreement of
Energy East Capital Trust ___ dated as of ___________, 20__ among the Company,
as Sponsor, The Chase Manhattan Bank, as Property Trustee, Chase Manhattan Bank
USA, National Association, as Delaware Trustee, the Administrative Trustees
named therein and the holders, from time to time, of undivided beneficial
interests in the assets of the Trust.]

            ["TRUST SECURITIES" means the Common Securities and the Capital
Securities.]

            ["UNDERWRITERS" has the meaning specified in the fourth recital to
this ______ Supplemental Indenture.]

            ["UNDERWRITING AGREEMENT" has the meaning specified in the fourth
recital to this ______ Supplemental Indenture.]

                                   ARTICLE II

             GENERAL TERMS AND CONDITIONS OF THE JUNIOR SUBORDINATED
                                 DEBT SECURITIES

      2.1   DESIGNATION AND PRINCIPAL AMOUNT. There is hereby authorized one
series of Debt Securities, to be designated the "___% Junior Subordinated Debt
Securities due ___________, 20__," in the initial aggregate principal amount of
$__________, which amount shall be as set forth in any written orders of the
Company for the authentication and delivery of Junior Subordinated Debt
Securities pursuant to Section 2.1 of the Base Indenture and Section 7.1 hereof.
Additional Junior Subordinated Debt Securities without limitation as to amount,
and without the consent of the holders of the then Outstanding Junior
Subordinated Debt Securities, may also be authenticated and delivered in the
manner provided in Section 2.1 of the Base Indenture. Any such additional Junior
Subordinated Debt Securities will have the same Stated Maturity and other terms
as those initially issued.

      2.2   STATED MATURITY. The Stated Maturity of the Junior Subordinated Debt
Securities is ___________, 20__ which may be shortened or extended pursuant to
Section 2.12 of the Base Indenture.

      2.3   FORM AND PAYMENT; MINIMUM TRANSFER RESTRICTION.

            (a) The Junior Subordinated Debt Securities shall be issued to the
[holders] [Property Trustee] in fully registered definitive form without coupons
in

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minimum denominations of $____ and integral multiples of $____ in excess
thereof. Principal and interest on the Junior Subordinated Debt Securities
issued in definitive form will be payable, the transfer of such Junior
Subordinated Debt Securities will be registrable and such Junior Subordinated
Debt Securities will be exchangeable for Junior Subordinated Debt Securities
bearing identical terms and provisions at the principal office of the Trustee;
provided, however, that payment of interest may be made at the option of the
Company by check mailed to the registered holder at such address as shall appear
in the Register. [Notwithstanding the foregoing, so long as the registered
holder of any Junior Subordinated Debt Securities is the Property Trustee, the
payment of the principal of and interest (including Additional Interest and
Additional Tax Sums, if any) on such Junior Subordinated Debt Securities held by
the Property Trustee will be made at such place, or by wire transfer of
immediately available funds to such account, as may be designated by the
Property Trustee.] The Register for the Junior Subordinated Debt Securities
shall be kept at the principal office of the Trustee and the Trustee is hereby
appointed registrar for the Junior Subordinated Debt Securities.

            (b) The Junior Subordinated Debt Securities may be transferred or
exchanged only in minimum denominations of $____ and integral multiples of $____
in excess thereof, and any attempted transfer, sale or other disposition of
Junior Subordinated Debt Securities in a denomination of less than $____ shall
be deemed to be void and of no legal effect whatsoever. Any such transferee
shall be deemed not to be the holder of such Junior Subordinated Debt Securities
for any purpose, including but not limited to the receipt of payments in respect
of such Junior Subordinated Debt Securities and such transferee shall be deemed
to have no interest whatsoever in such Junior Subordinated Debt Securities.

      2.4   EXCHANGE AND REGISTRATION OF TRANSFER OF JUNIOR SUBORDINATED DEBT
SECURITIES; RESTRICTIONS ON TRANSFERS; DEPOSITARY. [If distributed to holders of
Capital Securities pursuant to Section 8.2 of the Trust Agreement, the Junior
Subordinated Debt Securities will be issued to such holders in the same form as
the Capital Securities that such Junior Subordinated Debt Securities replace in
accordance with the following procedures:]

            (a) So long as Junior Subordinated Debt Securities are eligible for
book-entry settlement with the Depositary, or unless required by law, all
Junior Subordinated Debt Securities that are so eligible will be represented by
one or more Junior Subordinated Debt Securities in global form (a "Global Debt
Security") registered in the name of the Depositary or the nominee of the
Depositary. Except as provided in Section 2.4(c) below, beneficial owners of a
Global Debt Security shall not be entitled to have Definitive Debt Security
Certificates registered in their names, will not receive or be entitled to
receive physical delivery of Definitive Debt Security Certificates and will not
be registered holders of such Global Debt Securities.

            (b) The transfer and exchange of beneficial interests in Global Debt
Securities shall be effected through the Depositary in accordance with the
Indenture and the procedures and standing instructions of the Depositary and the
Trustee shall make

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appropriate endorsements to reflect increases or decreases in principal amounts
of such Global Debt Securities.

            (c) Notwithstanding any other provisions of the Indenture (other
than the provisions set forth in this Section 2.4(c)), a Global Debt Security
may not be exchanged in whole or in part for Junior Subordinated Debt Securities
registered, and no transfer of a Global Debt Security may be registered, in the
name of any person other than the Depositary or a nominee thereof unless (i)
such Depositary (A) has notified the Company that it is unwilling or unable to
continue as Depositary for such Global Debt Security or (B) has ceased to be a
clearing agency registered as such under the Exchange Act and no successor
Depositary has been appointed by the Company within 90 days after its receipt of
such notice or its becoming aware of such ineligibility, (ii) there shall have
occurred and be continuing an Event of Default, or any event which after notice
or lapse of time or both would be an Event of Default under the Indenture, with
respect to such Debt Security, or (iii) the Company, in its sole discretion,
instructs the Trustee to exchange such Global Debt Security for a Junior
Subordinated Debt Security that is not a Global Debt Security (in which case
such exchange shall be effected by the Trustee).

            The Depositary shall be a clearing agency registered under the
Exchange Act. The Company initially appoints The Depository Trust Company to act
as Depositary with respect to the Global Debt Securities. Initially, any Global
Debt Securities shall be registered in the name of Cede & Co., as the nominee of
the Depositary, and deposited with the Trustee as custodian for Cede & Co.

            Definitive Junior Subordinated Debt Securities issued in exchange
for all or a part of a Global Debt Security pursuant to this Section 2.4(c)
shall be registered in such names and in such authorized denominations as the
Depositary, pursuant to instructions from its direct or indirect participants or
otherwise, shall instruct the Trustee. Upon execution and authentication, the
Trustee shall deliver such definitive Junior Subordinated Debt Securities to the
person in whose names such definitive Junior Subordinated Debt Securities are so
registered.

            So long as Junior Subordinated Debt Securities are represented by
one or more Global Debt Securities, (i) the registrar for the Junior
Subordinated Debt Securities and the Trustee shall be entitled to deal with the
clearing agency for all purposes of the Indenture relating to such Global Debt
Securities as the sole holder of the Junior Subordinated Debt Securities
evidenced by such Global Debt Securities and shall have no obligations to the
holders of beneficial interests in such Global Debt Securities; and (ii) the
rights of the holders of beneficial interests in such Global Debt Securities
shall be exercised only through the clearing agency and shall be limited to
those established by law and agreements between such holders and the clearing
agency and/or the participants in the clearing agency.

            At such time as all interests in a Global Debt Security have been
paid, redeemed, exchanged, repurchased or canceled, such Global Debt Security
shall be, upon receipt thereof, canceled by the Trustee in accordance with
standing procedures and

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instructions of the Depositary. At any time prior to such cancellation, if any
interest in a Global Debt Security is exchanged for definitive Junior
Subordinated Debt Securities, redeemed by the Company pursuant to Article III or
canceled, or transferred for part of a Global Debt Security, the principal
amount of such Global Debt Security shall, in accordance with the standing
procedures and instructions of the Depositary be reduced or increased, as the
case may be, and an endorsement shall be made on such Global Debt Security by,
or at the direction of, the Trustee to reflect such reduction or increase.

      2.5   INTEREST.

            (a) Each Junior Subordinated Debt Security will bear interest at the
rate of ___% per annum (the "Coupon Rate") from ___________, 20__ until the
principal thereof becomes due and payable, and will bear interest on any overdue
principal at the Coupon Rate and (to the extent that payment of such interest is
enforceable under applicable law) on any overdue installment of interest at the
Coupon Rate ("Additional Interest"), compounded [semi-annually], payable
(subject to the provisions of Article IV) [semi-annually] in arrears on the 15th
day of [_______] and [_______] of each year (each, an "Interest Payment Date"),
commencing on ______ 15, 20__ to the Person in whose name such Junior
Subordinated Debt Security is registered, subject to certain exceptions, at the
close of business on the Record Date next preceding such Interest Payment Date.
The "Record Date" for payment of interest will be the Business Day next
preceding the Interest Payment Date, unless such Junior Subordinated Debt
Security is registered to a holder other than the Property Trustee or a nominee
of the Depositary, in which case the Record Date for payment of interest will be
the fifteenth calendar day preceding the applicable Interest Payment Date,
whether or not a Business Day. [Until liquidation, if any, of the Trust, each
Junior Subordinated Debt Security will be held in the name of the Property
Trustee in trust for the benefit of the holders of the Trust Securities.]

            (b) The amount of interest payable for any period will be computed
on the basis of a 360-day year of twelve 30-day months. In the event that any
date on which interest is payable on the Junior Subordinated Debt Securities is
not a Business Day, then payment of interest 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), except that, if such Business Day
is in the next succeeding calendar year, such payment shall be made on the next
preceding day which is a Business Day, in each case with the same force and
effect as if made on the date such payment was originally payable.

            (c) [The Company will also pay any Additional Tax Sums as additional
distributions on the Junior Subordinated Debt Securities if the Trust is
required to pay any additional taxes, duties or other governmental charges as a
result of a Tax Event.]

      2.6   [DIRECT ACTION. In addition to any right of Direct Action granted
under Section 3.8(e) of the Trust Agreement to the holders of Capital
Securities, if the Property Trustee fails to enforce its rights under the Trust
Agreement or the Indenture to the fullest

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extent permitted by law and subject to the terms of the Trust Agreement and the
Indenture, then a holder of Capital Securities may directly institute a
proceeding against the Company to enforce the Property Trustee's rights under
the Trust Agreement or the Indenture without first instituting a legal
proceeding against the Property Trustee or any other person.]

      2.7   SUBORDINATION. The indebtedness evidenced by the Junior Subordinated
Debt Securities shall be, to the extent and in the manner set forth in the
Base Indenture, subordinate and junior in right of payment to the prior
payment in full of all Senior Indebtedness of the Company with respect to the
Junior Subordinated Debt Securities, and the Junior Subordinated Debt
Securities shall rank pari passu in right of payment with each other series
of Securities issued under the Indenture.

                                   ARTICLE III

          [OPTIONAL REDEMPTION - REDEMPTION OF THE JUNIOR SUBORDINATED
                                DEBT SECURITIES

      3.1   TAX EVENT OR INVESTMENT COMPANY EVENT REDEMPTION. If a Tax Event or
Investment Company Event (either a "Special Event") shall occur and be
continuing, the Company may redeem the Junior Subordinated Debt Securities at
any time within 90 days after the occurrence of that Special Event, in whole but
not in part, at a redemption price (the "Special Event Redemption Price") equal
to [FIRST ALTERNATIVE - the Special Event Make-Whole Amount] [SECOND ALTERNATIVE
- 100% of the principal amount of the Junior Subordinated Debt Securities] plus
accrued and unpaid interest thereon to but excluding the redemption date. The
Special Event Redemption Price shall be paid prior to 2:00 p.m., New York City
time, on the date of such redemption, provided that the Company shall deposit
with the Trustee an amount sufficient to pay the Special Event Redemption Price
by 11:00 a.m., New York City time, on the date such Special Event Redemption
Price is to be paid.

      3.2   OPTIONAL REDEMPTION BY COMPANY. [FIRST ALTERNATIVE - The Company
shall have the option to redeem the Junior Subordinated Debt Securities at any
time, in whole but not in part, at a redemption price (the "Optional Redemption
Price") equal to the Optional Redemption Make-Whole Amount plus accrued and
unpaid interest thereon to but excluding the redemption date.] [SECOND
ALTERNATIVE - The Company shall have the option to redeem the Junior
Subordinated Debt Securities at any time on or after _________, 20__, in whole
or in part, at a redemption price (the "Optional Redemption Price") equal to
100% of the principal amount of the Junior Subordinated Debt Securities plus
accrued and unpaid interest thereon to but excluding the redemption date.] The
Optional Redemption Price shall be paid prior to 2:00 p.m., New York City time,
on the date of such redemption, provided that the Company shall deposit with the
Trustee an amount sufficient to pay the Optional Redemption Price by 11:00 a.m.,
New York City time, on the date such Optional Redemption Price is to be paid.

      3.3   NOTICE OF REDEMPTION. Subject to Article III of the Base Indenture,
notice of any redemption pursuant to this Article III will be mailed at least 20
days but not more than 60 days before the redemption date to each holder of
Junior Subordinated Debt Securities to be redeemed at such holder's registered
address. Unless the Company defaults in payment of the applicable redemption
price, on and after the redemption date interest shall cease to accrue on such
Junior Subordinated Debt Securities called for redemption. [FIRST ALTERNATIVE -
The Company will notify the Trustee of the

                                       10
<PAGE>

amount of the redemption price promptly after the calculation thereof and the
Trustee will not be responsible for such calculation.]]

                                   ARTICLE IV

                      [EXTENSION OF INTEREST PAYMENT PERIOD

      4.1   EXTENSION OF INTEREST PAYMENT PERIOD. So long as no Event of Default
under Section 6.1 of the Base Indenture has occurred and is continuing, the
Company shall have the right, subject to the provisions of Section 2.10 of the
Base Indenture, at any time during the term of the Junior Subordinated Debt
Securities, from time to time to defer the payment of interest by extending the
interest payment period of such Junior Subordinated Debt Securities for a period
not exceeding 10 consecutive semi-annual periods (an "Extension Period"), during
which Extension Period the Company shall not have the right to make partial
payments of interest. No Extension Period shall end on a date other than an
Interest Payment Date or extend beyond the Stated Maturity of the Junior
Subordinated Debt Securities. To the extent permitted by applicable law,
interest, the payment of which has been deferred because of an Extension Period
imposed pursuant to this Section 4.1, will bear Additional Interest compounded
[semi-annually]. At the end of the Extension Period, the Company shall pay all
interest then accrued and unpaid on the Junior Subordinated Debt Securities,
including any Additional Interest and Additional Tax Sums, if applicable, to the
holders of the Junior Subordinated Debt Securities in whose names the Junior
Subordinated Debt Securities are registered in the Register on the first Record
Date preceding the end of the Extension Period. Before the termination of any
Extension Period, the Company may further extend such Extension Period, provided
that such period together with all such further extensions thereof shall not
exceed 10 consecutive [semi-annual] periods, or extend beyond the Stated
Maturity. At any time following the termination of any Extension Period and upon
the payment of any accrued and unpaid Additional Interest and Additional Tax
Sums, if applicable, then due, the Company may elect to begin a new Extension
Period, subject to the foregoing requirements. No interest shall be due and
payable during an Extension Period, except at the end thereof.

      During any such Extension Period, the Company shall not (i) declare or pay
any dividends or distributions on, or redeem, purchase, acquire or make a
liquidation payment with respect to, any of the Company's Capital Stock or (ii)
make any payment of principal of or interest on or repay, repurchase or redeem
any debt securities of the Company that rank on a parity with or junior to this
Debt Security or make any guarantee payments with respect to any guarantee by
the Company of the debt securities of any Subsidiary of the Company that by its
terms ranks on a parity with or junior to this Debt Security (other than (a)
dividends or distributions in Common Stock, (b) any declaration of a dividend in
connection with the implementation of a Rights Plan, the issuance of any Capital
Stock of the Company under any Rights Plan or the redemption or repurchase of
any rights distributed pursuant to a Rights Plan, (c) payments under any
Energy East Guarantee relating to the Capital Securities issued by the Energy
East Trust holding the Junior Subordinated Debt Securities, and (d) purchases
of Common Stock related to the issuance of Common Stock or rights under the

                                       11
<PAGE>

Company's dividend reinvestment plan, or under any of the Company's benefit
plans for its directors, officers, employees, consultants or advisors).

      4.2   NOTICE OF EXTENSION.

            (a) If the Property Trustee is the only registered holder of the
Junior Subordinated Debt Securities at the time the Company elects to begin or
extend an Extension Period, the Company shall give written notice to the
Property Trustee, the Administrative Trustees and the Trustee of its election to
begin or extend any Extension Period at least five Business Days prior to the
earlier of (i) the next succeeding date on which Distributions on the Capital
Securities issued by the Trust would have been payable but for the election to
begin or extend such Extension Period or (ii) subject to applicable principles
of federal securities law, the date the Administrative Trustees are required to
give notice to any securities exchange or other applicable self-regulatory
organization or to holders of such Capital Securities of the record date or the
date such Distributions are payable, but in any event not less than five
Business Days prior to such record date. An Administrative Trustee shall give
notice of the Company's election to begin or extend an Extension Period to the
holders of such Capital Securities.

            (b) If the Property Trustee is not the only holder of the Junior
Subordinated Debt Securities at the time the Company elects to begin or extend
an Extension Period, the Company shall give the holders of the Junior
Subordinated Debt Securities, the Administrative Trustees and the Trustee
written notice of its election to begin or extend such Extension Period at least
10 Business Days prior to the earlier of (i) the next succeeding Interest
Payment Date or (ii) subject to applicable principles of federal securities law,
the date the Company is required to give notice of the record or payment date of
such interest payment to any applicable self-regulatory organization or to
holders of the Junior Subordinated Debt Securities.

            (c) The semi-annual period in which any notice is given pursuant to
paragraphs (a) or (b) of this Section 4.2 shall be counted as one of the 10
consecutive semi-annual periods permitted in the maximum Extension Period
permitted under Section 4.1 herein.]

                                    ARTICLE V

                                    EXPENSES

      5.1   PAYMENT OF EXPENSES. In connection with the offering, sale and
issuance of the Junior Subordinated Debt Securities [to the Property Trustee and
in connection with the offering, sale and issuance of the Trust Securities by
the Trust], the Company, in its capacity as borrower with respect to the Junior
Subordinated Debt Securities, shall:

            (a) pay all costs and expenses relating to the offering, sale and
issuance of the Junior Subordinated Debt Securities [and the Trust Securities],
including [commissions to the Underwriters payable pursuant to the Underwriting
Agreement and]

                                       12
<PAGE>

compensation of the Trustee under the Indenture in accordance with the
provisions of Section 7.6 of the Base Indenture;

            (b) [pay all costs and expenses of the Trust (including, but not
limited to, costs and expenses relating to the organization of the Trust, the
fees and expenses of the Property Trustee and the Delaware Trustee, the costs
and expenses relating to the operation of the Trust, including without
limitation, costs and expenses of accountants, attorneys, statistical or
bookkeeping services, expenses for printing and engraving and computing or
accounting equipment, paying agent(s), registrar(s), transfer agent(s),
duplicating, travel and telephone and other telecommunications expenses and
costs and expenses incurred in connection with the acquisition, financing, and
disposition of Trust assets);]

            (c) [pay all costs and expenses related to the enforcement by the
Property Trustee of the rights of the registered holders of the Capital
Securities;

            (d) be primarily liable for any indemnification obligations arising
with respect to the Trust Agreement and the Underwriting Agreement; and

            (e) pay any and all taxes and all liabilities, costs and expenses
with respect to such taxes of the Trust (but not including withholding taxes
imposed on holders of Capital Securities or Common Securities of the Trust).]

      5.2   PAYMENT UPON RESIGNATION OR REMOVAL. Upon termination of this
Supplemental Indenture or the Base Indenture or the removal or resignation of
the Trustee pursuant to Section 7.10 of the Base Indenture, the Company shall
pay to the Trustee all amounts owed to it under Section 7.6 of the Base
Indenture accrued to the date of such termination, removal or resignation. [Upon
termination of the Trust Agreement or the removal or resignation of the Delaware
Trustee or the Property Trustee, as the case may be, pursuant to Section 6.6 of
the Trust Agreement, the Company shall pay to the Delaware Trustee or the
Property Trustee, as the case may be, and their respective counsel, all amounts
owed to them under Section 4.2 of the Trust Agreement accrued to the date of
such termination, removal or resignation.]

                                   ARTICLE VI

                    FORM OF JUNIOR SUBORDINATED DEBT SECURITY

      6.1   FORM OF JUNIOR SUBORDINATED DEBT SECURITY. The Junior Subordinated
Debt Securities and the Trustee's Certificate of Authentication to be endorsed
thereon are to be substantially in the form attached hereto as Exhibit A.

                                   ARTICLE VII

              ORIGINAL ISSUE OF JUNIOR SUBORDINATED DEBT SECURITIES

      7.1   ORIGINAL ISSUE OF JUNIOR SUBORDINATED DEBT SECURITIES. Junior
Subordinated Debt Securities in the initial aggregate principal amount of up to

                                       13
<PAGE>

$__________ may be executed by the Company and delivered to the Trustee for
authentication by it, and the Trustee shall thereupon authenticate and deliver
said Junior Subordinated Debt Securities to or upon the written order of the
Company, signed by its Chairman, the Chief Executive Officer, the President or
any Vice President (whether or not designated by a number or word or words added
before or after the title Vice President) and by its Treasurer, Controller or
its Corporate Secretary without any further corporate action by the Company.
Additional Junior Subordinated Debt Securities without limitation as to amount,
and without the consent of the holders the then outstanding Junior Subordinated
Debt Securities, may also be authenticated and delivered in the manner provided
in Section 2.1 of the Base Indenture. Any such additional Junior Subordinated
Debt Securities will have the same Stated Maturity and other terms as those
initially issued.

                                  ARTICLE VIII

                                  MISCELLANEOUS

      8.1   RATIFICATION OF BASE INDENTURE; ______ SUPPLEMENTAL INDENTURE
CONTROLS. The Base Indenture, as supplemented by this ______ Supplemental
Indenture, is in all respects ratified and confirmed, and this ______
Supplemental Indenture shall be deemed part of the Base Indenture in the
manner and to the extent herein and therein provided. The provisions of this
______ Supplemental Indenture shall supersede the provisions of the Base
Indenture to the extent the Base Indenture is inconsistent herewith.

      8.2   TRUSTEE NOT RESPONSIBLE FOR RECITALS. The recitals herein contained
are made by the Company and not by the Trustee, and the Trustee assumes no
responsibility for the correctness thereof. The Trustee makes no representation
as to the validity or sufficiency of this ______ Supplemental Indenture.

      8.3   GOVERNING LAW. This ______ Supplemental Indenture and each Junior
Subordinated Debt Security shall be deemed to be a contract made under the
internal laws of the State of New York, and for all purposes shall be governed
by and construed in accordance with the laws of said State, without regard to
the conflicts of law principles thereof.

      8.4   SEPARABILITY. In case any one or more of the provisions contained in
this ______ Supplemental Indenture or in the Junior Subordinated Debt Securities
shall for any reason be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any
other provisions of this ______ Supplemental Indenture or of the Junior
Subordinated Debt Securities, but this ______ Supplemental Indenture and the
Junior Subordinated Debt Securities shall be construed as if such invalid or
illegal or unenforceable provision had never been contained herein or therein.

      8.5   COUNTERPARTS. This ______ Supplemental Indenture may be executed in
any number of counterparts each of which shall be an original; but such
counterparts shall together constitute but one and the same instrument.

                                       14
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this ______
Supplemental Indenture to be duly executed as of the date first above written.

                              ENERGY EAST CORPORATION

                              By:___________________________
                              Name:
                              Title:

                              THE CHASE MANHATTAN BANK,
                                   as Trustee

                              By:____________________________
                              Name:
                              Title:

                                       15
<PAGE>

                                    EXHIBIT A

               (FORM OF FACE OF JUNIOR SUBORDINATED DEBT SECURITY)

      [THIS DEBT SECURITY IS A GLOBAL DEBT 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 DEBT SECURITY IS EXCHANGEABLE FOR JUNIOR
SUBORDINATED DEBT 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 DEBT SECURITY (OTHER THAN A TRANSFER OF THIS
DEBT 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 SUCH LIMITED CIRCUMSTANCES.]*

      [UNLESS THIS DEBT SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY DEBT
SECURITY ISSUED IS REGISTERED IN THE NAME OF [CEDE & CO.] OR SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND
ANY PAYMENT HEREON IS MADE TO [CEDE & CO.], ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL SINCE THE REGISTERED OWNER
HEREOF, [CEDE & CO.], HAS AN INTEREST HEREIN.]*

      THE DEBT SECURITIES EVIDENCED HEREBY WILL BE ISSUED, AND MAY BE
TRANSFERRED, ONLY IN BLOCKS HAVING A PRINCIPAL AMOUNT OF NOT LESS THAN $_____.
ANY TRANSFER, SALE OR OTHER DISPOSITION OF SUCH DEBT SECURITIES IN A BLOCK
HAVING A PRINCIPAL AMOUNT OF LESS THAN $_____ SHALL BE DEEMED TO BE VOID AND OF
NO LEGAL EFFECT WHATSOEVER. ANY SUCH TRANSFEREE SHALL BE DEEMED NOT TO BE THE
HOLDER OF SUCH DEBT SECURITIES FOR ANY PURPOSE, INCLUDING BUT NOT LIMITED TO THE
RECEIPT OF PAYMENTS IN RESPECT OF SUCH DEBT SECURITIES, AND SUCH TRANSFEREE
SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH DEBT SECURITIES.

------------
* Insert in Global Debt Securities.

                                       16
<PAGE>

                            ENERGY EAST CORPORATION
                            =======================

                              [Up to]* $___________

                            ___% JUNIOR SUBORDINATED

                       DEBT SECURITY DUE ___________, 20__

                            Dated:__________________

NUMBER ____                         [CUSIP NO: ___________________]

Registered Holder:

      ENERGY EAST CORPORATION, a corporation duly organized and existing under
the laws of the State of New York (herein referred to as the "Company," which
term includes any successor corporation under the Indenture hereinafter referred
to), for value received, hereby promises to pay to the Registered Holder named
above, the principal sum [of __________________________ Dollars]**[specified in
the Schedule annexed hereto]* on ___________, 20__ (the "Stated Maturity"), in
such coin or currency of the United States of America as at the time of payment
is legal tender for the payment of public and private debt. The Company further
promises to pay to the registered Holder hereof as hereinafter provided (a)
interest on said principal sum (subject to deferral as set forth herein) at the
rate per annum specified in the title of this debt security (the "Debt
Security"), in like coin or currency, semi-annually in arrears on the 15th day
of ________ and _______ (each an "Interest Payment Date") commencing ______ 15,
20__, from the Interest Payment Date next preceding the date hereof to which
interest has been paid or duly provided for (unless (i) no interest has yet been
paid or duly provided for on this Debt Security, in which case from ___________,
20__, or (ii) the date hereof is before an Interest Payment Date but after the
related Record Date (as defined below), in which case from such following
Interest Payment Date; provided, however, that if the Company shall default in
payment of the interest due on such following Interest Payment Date, then from
the next preceding Interest Payment Date to which interest has been paid or duly
provided for), until the principal hereof is paid or duly provided for, plus (b)
Additional Interest, as defined in the Indenture, to the extent permitted by
applicable law, on any interest payment that is not made on the applicable
Interest Payment Date, which shall accrue at the rate per annum specified in the
title of this Debt Security, compounded semi-annually.

-----------------
*  Insert in Global Debt Securities and Debt Securities issued to the Property
   Trustee.
** Insert in Debt Securities other than Global Debt Securities and Debt
   Securities issued to the Property Trustee.

                                       17
<PAGE>

      The interest so payable will, subject to certain exceptions provided in
the Indenture hereinafter referred to, be paid to the person in whose name this
Debt Security is registered at the close of business on the Record Date next
preceding such Interest Payment Date. The Record Date shall be the Business Day
next preceding the Interest Payment Date, unless this Debt Security is
registered to a holder other than [the Property Trustee or] a nominee of The
Depository Trust Company, in which case the Record Date will be the fifteenth
calendar day preceding such Interest Payment Date whether or not a Business Day.
This Debt Security may be presented for payment of principal and interest at the
principal corporate trust office of The Chase Manhattan Bank, as paying agent
for the Company, maintained for that purpose in the Borough of Manhattan, The
City of New York; provided, however, that payment of interest may be made at the
option of the Company (i) by check mailed to such address of the person entitled
thereto as the address shall appear on the Register of the Debt Securities or
(ii) by transfer to an account maintained by the Person entitled thereto as
specified in the Register, provided that proper transfer instructions have been
received by the Record Date. Interest on the Debt Security will be computed on
the basis of a 360-day year of twelve 30-day months.

      [So long as no Event of Default has occurred and is continuing, the
Company shall have the right, at any time during the term of this Debt Security,
from time to time to defer the payment of interest by extending the interest
payment period of this Debt Security for a period not exceeding 10 consecutive
semi-annual periods (an "Extension Period"), during which Extension Period the
Company shall not have the right to make partial payments of interest. No
Extension Period shall end on a date other than an Interest Payment Date or
extend beyond the Stated Maturity of this Debt Security. To the extent permitted
by applicable law, interest, the payment of which has been deferred because of
an Extension Period, will bear Additional Interest compounded [semi-annually].
At the end of the Extension Period, the Company shall pay all interest then
accrued and unpaid on this Debt Security, including any Additional Interest
and Additional Tax Sums, if applicable, to the Person in whose name this Debt
Security is registered in the Register on the first Record Date preceding the
end of the Extension Period. Before the termination of any Extension Period,
the Company may further extend such Extension Period, provided that such
period together with all such further extensions thereof shall not exceed 10
consecutive semi-annual periods, or extend beyond the Stated Maturity. At any
time following the termination of any Extension Period and upon the payment
of any accrued and unpaid Additional Interest and Additional Tax Sums, if
applicable, then due, the Company may elect to begin a new Extension Period,
subject to the foregoing requirements. No interest shall be due and payable
during an Extension Period, except at the end thereof.]

      [During any such Extension Period, the Company shall not (i) declare or
pay any dividends or distributions on, or redeem, purchase, acquire or make a
liquidation payment with respect to, any of the Company's Capital Stock or (ii)
make any payment of principal of or interest on or repay, repurchase or redeem
any debt securities of the Company that rank on a parity with or junior to this
Debt Security or make any guarantee payments with respect to any guarantee by
the Company of the debt securities of any

                                       18
<PAGE>

Subsidiary of the Company that by its terms ranks on a parity with or junior
to this Debt Security (other than (a) dividends or distributions in Common
Stock, (b) any declaration of a dividend in connection with the
implementation of a Rights Plan, the issuance of any Capital Stock of the
Company under any Rights Plan or the redemption or repurchase of any rights
distributed pursuant to a Rights Plan, (c) payments under the Energy East
Guarantee relating to the Capital Securities issued by the Trust, and (d)
purchases of Common Stock related to the issuance of Common Stock or rights
under the Company's dividend reinvestment plan or under any of the Company's
benefit plans for its directors, officers, employees, consultants or
advisors).]

      [[If the Property Trustee is the only registered holder of the Debt
Securities of this series at the time the Company elects to begin or extend an
Extension Period, the Company shall give written notice to the Property Trustee,
the Administrative Trustees and the Trustee of its election to begin or extend
any Extension Period at least five Business Days prior to the earlier of (i) the
next succeeding date on which Distributions on the Capital Securities issued by
the Trust would have been payable but for the election to begin or extend such
Extension Period or (ii) subject to applicable principles of federal securities
law, the date the Administrative Trustees are required to give notice to any
securities exchange or other applicable self-regulatory organization or to
holders of such Capital Securities of the record date or the date such
Distributions are payable, but in any event not less than five Business Days
prior to such record date.] [An Administrative Trustee shall give notice of the
Company's election to begin or extend an Extension Period to the holders of such
Capital Securities.]]

      [[If the Property Trustee is not the only holder of the Debt Securities of
this series at the time the Company elects to begin or extend an Extension
Period,] the Company shall give the holders of the Debt Securities of this
series, the Administrative Trustees and the Trustee written notice of its
election to begin or extend such Extension Period at least 10 Business Days
prior to the earlier of (i) the next succeeding Interest Payment Date or (ii)
subject to applicable principles of federal securities law, the date the Company
is required to give notice of the record or payment date of such interest
payment to any applicable self-regulatory organization or to holders of the Debt
Securities of this series.]

      [The semi-annual period in which any notice is given pursuant to the two
preceding paragraphs shall be counted as one of the 10 consecutive semi-annual
periods permitted in the maximum Extension Period.]

      This Debt Security is issued pursuant to an Indenture, dated as of
_________, 2001, between the Company, as issuer, and The Chase Manhattan Bank, a
New York banking corporation, as trustee, as [supplemented by and amended and as
further] supplemented by a ________ Supplemental Indenture dated as of
___________, 20__ (the "Indenture"). Reference is made to the Indenture for a
description of the respective rights, limitations of rights, obligations, duties
and immunities thereunder of the Trustee, the Company and the Holders (the word
"Holder" or "Holders" meaning the registered holder or registered holders) of
the Debt Securities. Capitalized terms used herein but not

                                       19
<PAGE>

defined herein shall have the respective meanings assigned thereto in the
Indenture. By acceptance of this Debt Security, the Holder hereof agrees to be
bound by the provisions of the Indenture.

      The Debt Securities of this series shall have an initial aggregate
principal amount of _________________________________ Dollars ($__________).

      The Debt Securities evidenced by this Certificate may be transferred or
exchanged only in minimum denominations of $_____ and integral multiples of
$_____ in excess thereof, and any attempted transfer, sale or other disposition
of Debt Securities in a denomination of less than $_____ shall be deemed to be
void and of no legal effect whatsoever.

      The indebtedness of the Company evidenced by this Debt Security, including
the principal hereof and interest hereon, is, to the extent and in the manner
set forth in the Indenture, subordinate and junior in right of payment to the
Company's obligations to Holders of Senior Indebtedness of the Company and each
Holder of this Debt Security, by acceptance hereof, agrees to and shall be bound
by such provisions of the Indenture and all other provisions of the Indenture.

      This Debt Security shall not be valid or become obligatory for any purpose
until the certificate of authentication hereon shall have been signed by or on
behalf of the Trustee under the Indenture.

                                       20
<PAGE>

      IN WITNESS WHEREOF, ENERGY EAST CORPORATION has caused this instrument to
be signed, manually or in facsimile, by its Chairman, or its Chief Executive
Officer, or its President, or any Vice President and by its Treasurer or its
Controller or its Corporate Secretary under the corporate seal of Energy East
Corporation

                              ENERGY EAST CORPORATION

[SEAL]

                              By:______________________________________
                              Name:                              Title:

                              By: _____________________________________
                              Name:                              Title:

                                       21
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                              THE CHASE MANHATTAN BANK, as Trustee

                               By: ______________________________________
                               Authorized Officer

                                       22
<PAGE>

                            REVERSE OF DEBT SECURITY

      [As provided in and subject to the provisions in the Indenture, the
Company shall have the option to redeem the Debt Securities of this series
[FIRST ALTERNATIVE - OPTIONAL REDEMPTION - at any time, in whole but not in
part,] [SECOND ALTERNATIVE - OPTIONAL REDEMPTION - at any time on or after
_________, 20__, in whole or in part,] at the Optional Redemption Price. In
addition, if a Special Event shall occur and be continuing, the Company may
redeem the Debt Securities of this series at any time within 90 days after the
occurrence of that Special Event, in whole but not in part, at the Special Event
Redemption Price.]

      In the case an Event of Default, as defined in the Indenture, shall have
occurred and be continuing, the principal of all of the Debt Securities of this
series may be declared, and upon such declaration shall become, due and payable,
in the manner, with the effect and subject to the conditions provided in the
Indenture.

      Any consent or waiver by the Holder of this Debt Security given as
provided in the Indenture (unless effectively revoked as provided in the
Indenture) shall be conclusive and binding upon such Holder and upon all future
Holders of this Debt Security and of any Debt Security issued in exchange,
registration of transfer, or otherwise in lieu hereof irrespective of whether
any notation of such consent or waiver is made upon this Debt Security or such
other Debt Securities. No reference herein to the Indenture and no provision of
this Debt 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
interest on this Debt Security, at the places, at the respective times, at the
rate and in the coin or currency herein prescribed.

      As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Debt Security may be registered on the Register
of the Debt Securities of this series upon surrender of this Debt Security for
registration of transfer at the offices maintained by the Company or its agent
for such purpose, duly endorsed by the Holder hereof or his attorney duly
authorized in writing, or accompanied by a written instrument of transfer in
form satisfactory to the Company and the Securities registrar duly executed by
the Holder hereof or his attorney duly authorized in writing, but without
payment of any charge other than a sum sufficient to reimburse the Company for
any tax or other governmental charge incident thereto. Upon any such
registration of transfer, a new Debt Security or Debt Securities of authorized
denomination or denominations for the same aggregate principal amount will be
issued to the transferee in exchange herefor.

      Prior to due presentment for registration of transfer of this Debt
Security, the Company, the Trustee, and any agent of the Company or the Trustee
may deem and treat the person in whose name this Debt Security shall be
registered upon the Register of the Debt Securities of this series as the
absolute owner of this Debt Security (whether or not this Debt Security shall be
overdue and notwithstanding any notation of ownership or other writing hereon)
for the purpose of receiving payment of or on account of the

                                       23
<PAGE>

principal hereof and, subject to the provisions on the face hereof, interest due
hereon and for all other purposes; and neither the Company nor the Trustee nor
any such agent shall be affected by any notice to the contrary.

      No recourse shall be had for the payment of the principal of or interest
on this Debt 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 stockholder, officer, director or employee, as such, past,
present or future, of the Company or of any successor corporation, either
directly or through the Company, 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 a part of the
consideration for the issue hereof, expressly waived and released.

      The Company and, by acceptance of this Debt Security or a beneficial
interest in this Debt Security, each holder hereof and any person acquiring a
beneficial interest herein, agree that for United States federal, state and
local tax purposes it is intended that this Debt Security constitute
indebtedness.

      This Debt Security shall be deemed to be a contract made under the laws of
the State of New York (without regard to conflicts of laws principles thereof)
and for all purposes shall be governed by, and construed in accordance with, the
laws of said State.

                                       24
<PAGE>

      FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto

-------------------------------------------------------------------------------.
(please insert Social Security or other identifying number of assignee)

-------------------------------------------------------------------------------.

-------------------------------------------------------------------------------.

-------------------------------------------------------------------------------.

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE OF
ASSIGNEE

the within Debt Security and all rights thereunder, hereby irrevocably
constituting and appointing

-------------------------------------------------------------------------------.

-------------------------------------------------------------------------------.

-------------------------------------------------------------------------------.

-------------------------------------------------------------------------------.

-------------------------------------------------------------------------------.

-------------------------------------------------------------------------------.

agent to transfer said Debt Security on the books of the Company, with full
power of substitution in the premises.

Dated: ___________, 2001

      --------------------

NOTICE: The signature to this assignment must correspond with the name as
written upon the face of the within instrument in every particular without
alteration or enlargement, or any change whatever.

                                       25<PAGE>

                                                                    EXHIBIT 4-6

                 FORM OF CAPITAL SECURITIES GUARANTEE AGREEMENT

                          DATED AS OF ________________

                                 BY AND BETWEEN

                            ENERGY EAST CORPORATION,
                                  AS GUARANTOR

                                       AND

                            THE CHASE MANHATTAN BANK,
                                   AS TRUSTEE

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                          PAGE

                                          ARTICLE 1

                                INTERPRETATION AND DEFINITIONS

<S>                                                                                         <C>
        Section 1.1.  Interpretation and Definitions.........................................2

                                          ARTICLE 2

                                     TRUST INDENTURE ACT

        Section 2.1.  Trust Indenture Act; Application.......................................5
        Section 2.2.  Lists of Holders of Securities.........................................5
        Section 2.3.  Reports by Guarantee Trustee...........................................6
        Section 2.4.  Periodic Reports to Guarantee Trustee..................................6
        Section 2.5.  Evidence of Compliance with Conditions Precedent.......................6
        Section 2.6.  Guarantee Event of Default; Waiver.....................................6
        Section 2.7.  Guarantee Event of Default; Notice.....................................6
        Section 2.8.  Conflicting Interests..................................................7
        Section 2.9.  Disclosure of Information..............................................7
        Section 2.10. Guarantee Trustee may File Proofs of Claim.............................7

                                          ARTICLE 3

                                 POWERS, DUTIES AND RIGHTS OF
                                      GUARANTEE TRUSTEE

        Section 3.1.  Powers and Duties of Guarantee Trustee.................................7
        Section 3.2.  Certain Rights of Guarantee Trustee....................................9
        Section 3.3.  Not Responsible for Recitals or Issuance of Guarantee.................10

                                          ARTICLE 4

                                      GUARANTEE TRUSTEE

        Section 4.1.  Guarantee Trustee; Eligibility........................................11
        Section 4.2.  Appointment, Removal and Resignation of Guarantee Trustee.............11

                                          ARTICLE 5

                                          GUARANTEE

        Section 5.1.  Guarantee.............................................................12
        Section 5.2.  Waiver of Notice and Demand...........................................12
        Section 5.3.  Obligations not Affected..............................................12

<PAGE>

<S>                                                                                         <C>
        Section 5.4.  Rights of Holders.....................................................13
        Section 5.5.  Guarantee of Payment..................................................14
        Section 5.6.  Subrogation...........................................................14
        Section 5.7.  Independent Obligations...............................................14

                                          ARTICLE 6

                          LIMITATION OF TRANSACTIONS; SUBORDINATION

        Section 6.1.  Limitation of Transactions............................................15
        Section 6.2.  Ranking...............................................................15
        Section 6.3.  Subordination of Common Securities....................................15

                                          ARTICLE 7

                                         TERMINATION

        Section 7.1.  Termination...........................................................15

                                          ARTICLE 8

                                       INDEMNIFICATION

        Section 8.1.  Exculpation...........................................................16
        Section 8.2.  Compensation, Expenses and Indemnification............................16

                                          ARTICLE 9

                                        MISCELLANEOUS

        Section 9.1.  Successors and Assigns................................................17
        Section 9.2.  Amendments............................................................17
        Section 9.3.  Notices...............................................................17
        Section 9.4.  Benefit...............................................................18
        Section 9.5.  Governing Law.........................................................18
</TABLE>

                                       ii
<PAGE>

                     CAPITAL SECURITIES GUARANTEE AGREEMENT

            This CAPITAL SECURITIES GUARANTEE AGREEMENT (the "Guarantee"), dated
as of ________________, is executed and delivered by ENERGY EAST CORPORATION, a
New York corporation (the "Guarantor"), and THE CHASE MANHATTAN BANK, a New York
banking corporation, as trustee (the "Guarantee Trustee"), for the benefit of
the Holders (as defined herein) from time to time of the Securities (as defined
herein) of ENERGY EAST CAPITAL TRUST [ ], a Delaware statutory business trust
(the "Trust").

                                    RECITALS

            WHEREAS, pursuant to the Trust Agreement (as defined herein), the
Trust is initially issuing on the date hereof (i) $_____________ aggregate
liquidation amount of Capital Securities, having a liquidation amount of
$__________ per security and designated the "__________ ___% Capital Securities"
of the Trust and may, from time to time, issue additional Tranches (as defined
herein) of such securities in the future (the "Capital Securities") and (ii)
$_____________ aggregate liquidation amount of common securities, having a
liquidation amount equal to approximately __% of the total capital of the Trust
and designated the "___% Common Securities" of the Trust and may, from time to
time, issue additional Tranches (as defined herein) of such securities in the
future (the "Common Securities" and, together with the Capital Securities, the
"Securities");

            WHEREAS, the Securities will be issued by the Trust and the proceeds
thereof will be used to purchase the Junior Subordinated Notes (as defined
herein) of the Guarantor, which will be held by the Trust as trust assets;

            WHEREAS, as incentive for the Holders to purchase the Securities,
the Guarantor desires irrevocably and unconditionally to agree, to the extent
set forth in this Guarantee, to pay to the Holders of the Securities the
Guarantee Payments (as defined herein) and to make certain other payments on the
terms and conditions set forth herein; and

            WHEREAS, if a Trust Enforcement Event (as defined herein) has
occurred and is continuing, the rights of holders of the Common Securities to
receive Guarantee Payments (as defined herein) under this Guarantee are
subordinated to the rights of Holders of Capital Securities to receive Guarantee
Payments under this Guarantee;

            NOW, THEREFORE, in consideration of the purchase by each Holder of
Securities, which purchase the Guarantor hereby agrees shall benefit the
Guarantor, the Guarantor executes and delivers this Guarantee for the benefit of
the Holders.

<PAGE>

                                   ARTICLE 1

                         INTERPRETATION AND DEFINITIONS

            SECTION 1.1. INTERPRETATION AND DEFINITIONS. In this Guarantee,
unless the context otherwise requires:

            (a) capitalized terms used in this Guarantee but not defined in the
      preamble above have the respective meanings assigned to them in this
      Section 1.1;

            (b) a term defined anywhere in this Guarantee has the same meaning
      throughout;

            (c) all references to "the Guarantee" or "this Guarantee" are to
      this Guarantee as modified, supplemented or amended from time to time;

            (d) all references in this Guarantee to Articles, Sections and
      Recitals are to Articles, Sections and Recitals of this Guarantee, unless
      otherwise specified;

            (e) unless otherwise defined in this Guarantee, a term defined in
      the Trust Indenture Act or the Trust Agreement has the same meaning when
      used in this Guarantee;

            (f) a reference to the singular includes the plural and vice versa
      and a reference to any masculine form of a term shall include the feminine
      form of a term, as applicable; and

            (g) the following terms have the following meanings:

            "Affiliate" has the same meaning as given to that term in Rule 405
      of the Securities Act of 1933, as amended, or any successor rule
      thereunder.

            "Business Day" has the meaning specified in the Trust Agreement.

            "Capital Securities" has the meaning specified in the Recitals
      hereto.

            "Common Securities" has the meaning specified in the Recitals
      hereto.

            "Corporate Trust Office" means the office of the Guarantee Trustee
      at which at any particular time its corporate trust business shall be
      principally administered, which office at the date of execution of this
      Guarantee is located at 450 West 33rd Street, New York, New York 10001,
      Attention: Institutional Trust Services.

            "Covered Person" means a Holder or beneficial owner of Securities.

            "Global Security" means a fully registered, global Capital Security
      representing the Capital Securities.

                                       2
<PAGE>

            "Guarantee Event of Default" means a default by the Guarantor on any
      of its payment obligations under this Guarantee.

            "Guarantee Payments" means the following payments or distributions,
      without duplication, with respect to the Securities, to the extent not
      paid by or on behalf of the Trust: (i) any accumulated and unpaid
      Distributions (as defined in the Trust Agreement) that are required to be
      paid on such Securities to the extent the Trust has funds legally and
      immediately available therefor at the time, (ii) the Redemption Price,
      including all accumulated and unpaid Distributions to the date of
      redemption, with respect to any Securities called for redemption by the
      Trust, to the extent the Trust shall have funds legally and immediately
      available therefor at the time or (iii) upon a voluntary or involuntary
      dissolution, winding-up or termination of the Trust (other than in
      connection with the distribution of Junior Subordinated Notes to the
      Holders in exchange for Securities as provided in the Trust Agreement),
      the lesser of (a) the aggregate of the liquidation amount and all
      accumulated and unpaid Distributions on the Securities to the date of
      payment, to the extent the Trust has funds legally and immediately
      available therefor and (b) the amount of assets of the Trust remaining
      available for distribution to Holders in liquidation of the Trust (in
      either case, the "Liquidation Distribution").

            "Guarantee Trustee" means The Chase Manhattan Bank, until a
      successor Guarantee Trustee has been appointed and has accepted such
      appointment pursuant to the terms of this Guarantee and thereafter means
      each such Successor Guarantee Trustee.

            "Holder" means any holder of Securities, as registered on the books
      and records of the Trust; provided, however, that, in determining whether
      the Holders of the requisite percentage of Capital Securities have given
      any request, notice, consent or waiver hereunder, "Holder" shall not
      include the Guarantor or any Affiliate of the Guarantor or any other
      obligor on the Capital Securities; and provided further that in
      determining whether the Holders of the requisite liquidation amount of
      Capital Securities have voted on any matter provided for in this
      Guarantee, then for the purpose of such determination only (and not for
      any other purpose hereunder), if the Capital Securities remain in the form
      of one or more Global Certificates (as defined in the Trust Agreement) and
      if the Depositary which is the holder of such Global Securities has sent
      an omnibus proxy to the Trust assigning voting rights to Depositary
      Participants (as defined in the Trust Agreement) to whose accounts the
      Capital Securities are credited on the record date, the term "Holders"
      shall mean such Depositary Participants acting at the direction of the
      Beneficial Owners (as defined in the Trust Agreement).

            "Indemnified Person" means the Guarantee Trustee, any Affiliate of
      the Guarantee Trustee, or any officers, directors, shareholders, members,
      partners, employees, representatives, nominees, custodians or agents of
      the Guarantee Trustee.

            "Junior Subordinated Notes" means the series of Junior Subordinated
      Notes to be issued, from time to time, by Energy East Corporation
      designated the "_____________" held by the Property Trustee as defined in
      the Trust Agreement.

            "List of Holders" has the meaning assigned to it in Section 2.2
      hereof.

                                       3
<PAGE>

            "Majority in Liquidation Amount" means, except as provided in the
      terms of the Capital Securities or by the Trust Indenture Act, Holder(s)
      of outstanding Securities, voting together as a single class, or, as the
      context may require, Holders of outstanding Capital Securities or Holders
      of outstanding Common Securities, voting separately as a class, who are
      the record owners of more than 50% of the aggregate liquidation amount
      (including the stated amount that would be paid on redemption, liquidation
      or otherwise, plus accumulated and unpaid Distributions to the date upon
      which the voting percentages are determined) of all outstanding Securities
      of the relevant class. In determining whether the Holders of the requisite
      amount of Capital Securities have voted, Capital Securities which are
      owned by the Guarantor or any Affiliate of the Guarantor or any other
      obligor on the Capital Securities shall be disregarded for the purpose of
      any such determination.

            "Officers' Certificate" means, with respect to any Person, a
      certificate signed on behalf of such Person by two Authorized Officers (as
      defined in the Trust Agreement) of such Person. Any Officers' Certificate
      delivered with respect to compliance with a condition or covenant provided
      for in this Guarantee (other than pursuant to Section 314(a)(4) of the
      Trust Indenture Act) shall include:

                  (a) a statement that each officer signing the Officers'
            Certificate has read the covenant or condition and the definitions
            relating thereto;

                  (b) a brief statement of the nature and scope of the
            examination or investigation undertaken by each officer on behalf of
            such Person in rendering the Officers' Certificate;

                  (c) a statement that each such officer has made such
            examination or investigation as, in such officer's opinion, is
            necessary to enable such officer on behalf of such Person to express
            an informed opinion as to whether or not such covenant or condition
            has been complied with; and

                  (d) a statement as to whether, in the opinion of each such
            officer acting on behalf of such Person, such condition or covenant
            has been complied with.

            "Person" means a legal person, including any individual,
      corporation, estate, partnership, joint venture, association, joint stock
      company, limited liability company, trust, unincorporated association, or
      government or any agency or political subdivision thereof, or any other
      entity of whatever nature.

            "Redemption Price" has the meaning specified in the Trust Agreement.

            "Responsible Officer" means, with respect to the Guarantee Trustee,
      any officer with direct responsibility for the administration of this
      Guarantee and also means, with respect to a particular corporate trust
      matter, any other officer to whom such matter is referred because of that
      officer's knowledge of and familiarity with the particular subject.

            "Securities" has the meaning specified in the Recitals hereto.

                                       4
<PAGE>

            "Subordinated Indenture" means the Indenture, dated as of
      __________, 2001, by and between Energy East Corporation and The Chase
      Manhattan Bank as Trustee, as supplemented, pursuant to which the Junior
      Subordinated Notes are to be issued to the Property Trustee as defined in
      the Trust Agreement.

            "Successor Guarantee Trustee" means a successor Guarantee Trustee
      possessing the qualifications to act as Guarantee Trustee under Section
      4.1.

            "Tranche" has the meaning specified in the Trust Agreement.

            "Trust Agreement" means the Amended and Restated Trust Agreement of
      the Trust, dated as of _____________, as amended, modified or supplemented
      from time to time, among the trustees of the Trust named therein, the
      Guarantor, as sponsor, and the Holders, from time to time, of undivided
      beneficial ownership interests in the assets of the Trust.

            "Trust Enforcement Event" in respect of the Securities means an
      Event of Default (as defined in the Subordinated Indenture) has occurred
      and is continuing in respect of the Junior Subordinated Notes.

            "Trust Indenture Act" means the Trust Indenture Act of 1939, as
      amended from time to time, or any successor legislation.

                                   ARTICLE 2

                               TRUST INDENTURE ACT

            SECTION 2.1. TRUST INDENTURE ACT; APPLICATION.

            (a) This Guarantee is subject to the provisions of the Trust
Indenture Act that are required to be part of this Guarantee and shall, to the
extent applicable, be governed by such provisions.

            (b) If and to the extent that any provision of this Guarantee
limits, qualifies or conflicts with the duties imposed by Sections 310 to 317,
inclusive, of the Trust Indenture Act, such imposed duties shall control.

            SECTION 2.2. LISTS OF HOLDERS OF SECURITIES.

            (a) The Guarantor shall provide the Guarantee Trustee (i) except
while the Capital Securities are represented by one or more Global Securities at
least one Business Day prior to the date for payment of Distributions, a list,
in such form as the Guarantee Trustee may reasonably require, of the names and
addresses of the Holders of the Securities ("List of Holders") as of the record
date relating to the payment of such Distributions, and (ii) at any other time,
within 30 days of receipt by the Guarantor of a written request from the
Guarantee Trustee for a List of Holders, as of a date no more than 15 days
before such List of Holders is given to the Guarantee Trustee, excluding from
any such list names and addresses received by the

                                       5
<PAGE>

Guarantee Trustee in its capacity as Security Registrar; provided that the
Guarantor shall not be obligated to provide such List of Holders at any time the
List of Holders does not differ from the most recent List of Holders given to
the Guarantee Trustee by the Guarantor. The Guarantee Trustee shall preserve, in
as current a form as is reasonably practicable, all information contained in
Lists of Holders given to it, provided that the Guarantee Trustee may destroy
any List of Holders previously given to it on receipt of a new List of Holders.

            (b) The Guarantee Trustee shall comply with its obligations under
Sections 311(a), 311(b) and 312(b) of the Trust Indenture Act.

            SECTION 2.3. REPORTS BY GUARANTEE TRUSTEE. Within 60 days after the
first May 15 which occurs not less than 60 days following the initial Closing
Date and within 60 days days after May 15 in every year thereafter, so long as
any Capital Securities are outstanding under the Trust Agreement, the Guarantee
Trustee shall provide to the Holders of the Securities such reports as are
required by Section 313(a) of the Trust Indenture Act (if any) in the form and
in the manner provided by Section 313 of the Trust Indenture Act. The Guarantee
Trustee shall also comply with the other requirements of Section 313 of the
Trust Indenture Act. The Guarantor shall promptly notify the Guarantee Trustee
when the Securities are listed on any stock exchange.

            SECTION 2.4. PERIODIC REPORTS TO GUARANTEE TRUSTEE. The Guarantor
shall provide to the Guarantee Trustee such documents, reports and information
as required by Section 314(a) of the Trust Indenture Act (if any) and the
compliance certificate required by Section 314(a)(4) of the Trust Indenture Act
in the form, in the manner and at the times required by Section 314(a) of the
Trust Indenture Act, provided that such compliance certificate shall be
delivered on or before 120 days after the end of each calendar year of the
Guarantor.

            SECTION 2.5. EVIDENCE OF COMPLIANCE WITH CONDITIONS PRECEDENT. The
Guarantor shall provide to the Guarantee Trustee such evidence of compliance
with any conditions precedent, if any, provided for in this Guarantee that
relate to any of the matters set forth in Section 314(c) of the Trust Indenture
Act. Any certificate or opinion required to be given by an officer pursuant to
Section 314(c)(1) may be given in the form of an Officers' Certificate.

            SECTION 2.6. GUARANTEE EVENT OF DEFAULT; WAIVER. The Holders of a
Majority in Liquidation Amount of the Capital Securities may, by vote or written
consent, on behalf of the Holders of all of the Capital Securities, waive any
past Guarantee Event of Default and its consequences. Upon such waiver, any such
Guarantee Event of Default shall cease to exist, and any Guarantee Event of
Default arising therefrom shall be deemed to have been cured, for every purpose
of this Guarantee, but no such waiver shall extend to any subsequent or other
default or Guarantee Event of Default or impair any right consequent thereon.

            SECTION 2.7. GUARANTEE EVENT OF DEFAULT; NOTICE.

            (a) The Guarantee Trustee shall, within 90 days after the occurrence
of a Guarantee Event of Default actually known to a Responsible Officer of the
Guarantee Trustee, transmit by mail, first class postage prepaid, to the Holders
of the Securities, notices of all such Guarantee Events of Default, unless such
defaults have been cured before the giving of such

                                       6
<PAGE>

notice; provided, that the Guarantee Trustee shall be protected in withholding
such notice if and so long as a Responsible Officer of the Guarantee Trustee in
good faith determines that the withholding of such notice is in the interests of
the Holders of the Securities.

            (b) The Guarantee Trustee shall not be deemed to have knowledge of
any Guarantee Event of Default unless the Guarantee Trustee shall have received
written notice thereof from the Guarantor or a Holder or a Responsible Officer
of the Guarantee Trustee charged with the administration of this Guarantee shall
have obtained actual knowledge thereof.

            SECTION 2.8. CONFLICTING INTERESTS. The Trust Agreement shall be
deemed to be specifically described in this Trust Agreement for purposes of
clause (i) of the first proviso contained in Section 310(b) of the Trust
Indenture Act.

            SECTION 2.9. DISCLOSURE OF INFORMATION. The disclosure of
information as to the names and addresses of the Holders of the Securities in
accordance with Section 312 of the Trust Indenture Act, regardless of the source
from which such information was derived, shall not be deemed to be a violation
of any existing law, or any law hereafter enacted which does not specifically
refer to Section 312 of the Trust Indenture Act, nor shall the Guarantee Trustee
be held accountable by reason of mailing any material pursuant to a request made
under Section 312(b) of the Trust Indenture Act.

            SECTION 2.10. GUARANTEE TRUSTEE MAY FILE PROOFS OF CLAIM. Upon the
occurrence of a Guarantee Event of Default, the Guarantee Trustee is hereby
authorized to (a) recover judgment, in its own name and as trustee of an express
trust, against the Guarantor for the whole amount of any Guarantee Payments
remaining unpaid and (b) file such proofs of claim and other papers or documents
as may be necessary or advisable in order to have its claims and those of the
Holders of the Securities allowed in any judicial proceedings relative to the
Guarantor, its creditors or its property.

                                   ARTICLE 3

                          POWERS, DUTIES AND RIGHTS OF
                                GUARANTEE TRUSTEE

            SECTION 3.1. POWERS AND DUTIES OF GUARANTEE TRUSTEE.

            (a) This Guarantee shall be held by the Guarantee Trustee on behalf
of the Trust for the benefit of the Holders of the Securities, and the Guarantee
Trustee shall not transfer this Guarantee to any Person except a Holder of
Securities exercising his or her rights pursuant to Section 5.4(b) or to a
Successor Guarantee Trustee on acceptance by such Successor Guarantee Trustee of
its appointment to act as Successor Guarantee Trustee. The right, title and
interest of the Guarantee Trustee in and to this Guarantee shall automatically
vest in any Successor Guarantee Trustee, and such vesting and succession of
title shall be effective whether or not conveyance documents have been executed
and delivered pursuant to the appointment of such Successor Guarantee Trustee.

                                       7
<PAGE>

            (b) If a Guarantee Event of Default actually known to a Responsible
Officer of the Guarantee Trustee has occurred and is continuing, the Guarantee
Trustee shall be entitled to enforce this Guarantee for the benefit of the
Holders of the Securities.

            (c) The Guarantee Trustee, before the occurrence of any Guarantee
Event of Default and after the curing of all Guarantee Events of Default that
may have occurred, shall undertake to perform only such duties as are
specifically set forth in this Guarantee, and no implied covenants shall be read
into this Guarantee against the Guarantee Trustee. In case a Guarantee Event of
Default has occurred (that has not been cured or waived pursuant to Section 2.6)
and is actually known to a Responsible Officer of the Guarantee Trustee, the
Guarantee Trustee shall exercise such of the rights and powers vested in it by
this Guarantee, and use the same degree of care and skill in its exercise
thereof, as a prudent person would exercise or use under the circumstances in
the conduct of his or her own affairs.

            (d) No provision of this Guarantee shall be construed to relieve the
Guarantee Trustee from liability for its own negligent action, its own negligent
failure to act, or its own willful misconduct, except that:

            (i) prior to the occurrence of any Guarantee Event of Default and
      after the curing or waiving of all such Guarantee Events of Default that
      may have occurred:

                  (A) the duties and obligations of the Guarantee Trustee shall
            be determined solely by the express provisions of this Guarantee,
            and the Guarantee Trustee shall not be liable except for the
            performance of such duties and obligations as are specifically set
            forth in this Guarantee, and no implied covenants or obligations
            shall be read into this Guarantee against the Guarantee Trustee; and

                  (B) in the absence of bad faith on the part of the Guarantee
            Trustee, the Guarantee Trustee may conclusively rely, as to the
            truth of the statements and the correctness of the opinions
            expressed therein, upon any certificates or opinions furnished to
            the Guarantee Trustee and conforming to the requirements of this
            Guarantee; but in the case of any such certificates or opinions that
            by any provision hereof are specifically required to be furnished to
            the Guarantee Trustee, the Guarantee Trustee shall be under a duty
            to examine the same to determine whether or not they conform to the
            requirements of this Guarantee;

            (ii) the Guarantee Trustee shall not be liable for any error of
      judgment made in good faith by a Responsible Officer of the Guarantee
      Trustee, unless it shall be proved that the Guarantee Trustee was
      negligent in ascertaining the pertinent facts upon which such judgment was
      made;

            (iii) the Guarantee Trustee shall not be liable with respect to any
      action taken or omitted to be taken by it in good faith in accordance with
      the direction of the Holders of not less than a Majority in Liquidation
      Amount of the Capital Securities relating to the time, method and place of
      conducting any proceeding for any remedy available to the

                                       8
<PAGE>

      Guarantee Trustee, or exercising any trust or power conferred upon the
      Guarantee Trustee under this Guarantee; and

            (iv) no provision of this Guarantee shall require the Guarantee
      Trustee to expend or risk its own funds or otherwise incur personal
      financial liability in the performance of any of its duties or in the
      exercise of any of its rights or powers, if the Guarantee Trustee shall
      have reasonable grounds for believing that the repayment of such funds or
      liability is not reasonably assured to it under the terms of this
      Guarantee or if the Guarantee Trustee shall have reasonable grounds for
      believing that an indemnity, reasonably satisfactory to the Guarantee
      Trustee, against such risk or liability is not reasonably assured to it
      under the terms of this Guarantee.

            SECTION 3.2. CERTAIN RIGHTS OF GUARANTEE TRUSTEE.

            (a) Subject to the provisions of Section 3.1:

            (i) The Guarantee Trustee may conclusively rely, and shall be fully
      protected in acting or refraining from acting upon, any resolution,
      certificate, statement, instrument, opinion, report, notice, request,
      direction, consent, order, bond, debenture, note, other evidence of
      indebtedness or other paper or document believed by it to be genuine and
      to have been signed, sent or presented by the proper party or parties;

            (ii) Any direction or act of the Guarantor contemplated by this
      Guarantee shall be sufficiently evidenced by an Officers' Certificate;

            (iii) Whenever, in the administration of this Guarantee, the
      Guarantee Trustee shall deem it desirable that a matter be proved or
      established before taking, suffering or omitting any action hereunder, the
      Guarantee Trustee (unless other evidence is herein specifically
      prescribed) may, in the absence of bad faith on its part, request and
      conclusively rely upon an Officers' Certificate which, upon receipt of
      such request, shall be promptly delivered by the Guarantor;

            (iv) The Guarantee Trustee shall have no duty to see to any
      recording, filing or registration or any instrument (or any rerecording,
      refiling or re-registration thereof);

            (v) The Guarantee Trustee may consult with counsel, and the advice
      or opinion of such counsel with respect to legal matters shall be full and
      complete authorization and protection in respect of any action taken,
      suffered or omitted by it hereunder in good faith and in accordance with
      such advice or opinion. Such counsel may be counsel to the Guarantor or
      any of its Affiliates and may include any of its employees. The Guarantee
      Trustee shall have the right at any time to seek instructions concerning
      the administration of this Guarantee from any court of competent
      jurisdiction;

            (vi) The Guarantee Trustee shall be under no obligation to exercise
      any of the rights or powers vested in it by this Guarantee at the request
      or direction of any Holder, unless such Holder shall have provided to the
      Guarantee Trustee such security and indemnity, reasonably satisfactory to
      the Guarantee Trustee, against the costs, expenses (including attorneys'
      fees and expenses and the expenses of the Guarantee Trustee's

                                       9
<PAGE>

      agents, nominees or custodians) and liabilities that might be incurred by
      it in complying with such request or direction, including such reasonable
      advances as may be requested by the Guarantee Trustee; provided, that
      nothing contained in this Section 3.2(a)(vi) shall be taken to relieve the
      Guarantee Trustee, upon the occurrence of a Guarantee Event of Default, of
      its obligation to exercise the rights and powers vested in it by this
      Guarantee in the manner provided by Section 3.1(c);

            (vii) The Guarantee Trustee shall not be bound to make any
      investigation into the facts or matters stated in any resolution,
      certificate, statement, instrument, opinion, report, notice, request,
      direction, consent, order, bond, debenture, note, other evidence of
      indebtedness or other paper or document, but the Guarantee Trustee, in its
      discretion, may make such further inquiry or investigation into such facts
      or matters as it may see fit;

            (viii) The Guarantee Trustee may execute any of the trusts or powers
      hereunder or perform any duties hereunder either directly or by or through
      agents, nominees, custodians or attorneys, and the Guarantee Trustee shall
      not be responsible for any misconduct or negligence on the part of any
      agent or attorney appointed with due care by it hereunder;

            (ix) Any action taken by the Guarantee Trustee or its agents
      hereunder shall bind the Holders, and the signature of the Guarantee
      Trustee or its agents alone shall be sufficient and effective to perform
      any such action. No third party shall be required to inquire as to the
      authority of the Guarantee Trustee to so act or as to its compliance with
      any of the terms and provisions of this Guarantee, both of which shall be
      conclusively evidenced by the Guarantee Trustee's or its agent's taking
      such action; and

            (x) Whenever in the administration of this Guarantee, the Guarantee
      Trustee shall deem it desirable to receive instructions with respect to
      enforcing any remedy or right or taking any other action hereunder, the
      Guarantee Trustee (A) may request written instructions from the Holders of
      a Majority in Liquidation Amount of the Securities, (B) may refrain from
      enforcing such remedy or right or taking such other action until such
      written instructions are received and (C) shall be protected in
      conclusively relying on or acting in accordance with such written
      instructions.

            (b) No provision of this Guarantee shall be deemed to impose any
duty or obligation on the Guarantee Trustee to perform any act or acts or
exercise any right, power, duty or obligation conferred or imposed on it in any
jurisdiction in which it shall be illegal, or in which the Guarantee Trustee
shall be unqualified or incompetent to act in accordance with applicable law, to
perform any such act or acts or to exercise any such right, power, duty or
obligation. No permissive power or authority available to the Guarantee Trustee
shall be construed to be a duty.

            SECTION 3.3. NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF GUARANTEE.
The recitals contained in this Guarantee shall be taken as the statements of the
Guarantor, and the Guarantee Trustee does not assume any responsibility for
their correctness. The Guarantee Trustee makes no representations as to the
validity or sufficiency of this Guarantee.

                                       10
<PAGE>

                                   ARTICLE 4

                                GUARANTEE TRUSTEE

            SECTION 4.1. GUARANTEE TRUSTEE; ELIGIBILITY.

            (a) There shall be at all times a Guarantee Trustee which shall:

            (i) not be an Affiliate of the Guarantor; and

            (ii) be a corporation organized and doing business under the laws of
      the United States of America or any state or territory thereof or of the
      District of Columbia, or a corporation or other Person permitted by the
      Securities and Exchange Commission to act as an institutional trustee
      under the Trust Indenture Act, authorized under such laws to exercise
      corporate trust powers, having a combined capital and surplus of at least
      50 million U.S. dollars ($50,000,000), and subject to supervision or
      examination by federal, state, territorial or District of Columbia
      authority. If such corporation publishes reports of condition at least
      annually, pursuant to law or to the requirements of the supervising or
      examining authority referred to above, then, for the purposes of this
      Section 4.1(a)(ii), the combined capital and surplus of such corporation
      shall be deemed to be its combined capital and surplus as set forth in its
      most recent report of condition so published.

            (b) If at any time the Guarantee Trustee shall cease to be eligible
to so act under Section 4.1(a), the Guarantee Trustee shall immediately resign
in the manner and with the effect set out in Section 4.2(c).

            (c) If the Guarantee Trustee has or shall acquire any "conflicting
interest" within the meaning of Section 310(b) of the Trust Indenture Act, the
Guarantee Trustee and Guarantor shall in all respects comply with the provisions
of Section 310(b) of the Trust Indenture Act, subject to the penultimate
paragraph thereof.

            SECTION 4.2. APPOINTMENT, REMOVAL AND RESIGNATION OF GUARANTEE
TRUSTEE.

            (a) Subject to Section 4.2(b), unless a Guarantee Event of Default
shall have occurred and be continuing, the Guarantee Trustee may be appointed or
removed with or without cause at any time by the Guarantor. If a Guarantee Event
of Default has occurred and is continuing, the Guarantee Trustee may be
appointed or removed by the Holders of a Majority in Liquidation Amount of the
Capital Securities.

            (b) The Guarantee Trustee shall not be removed in accordance with
Section 4.2(a) until a Successor Guarantee Trustee has been appointed and has
accepted such appointment by written instrument executed by such Successor
Guarantee Trustee and delivered to the Guarantor.

            (c) The Guarantee Trustee appointed to office shall hold such office
until a Successor Guarantee Trustee shall have been appointed or until its
removal or resignation. The Guarantee Trustee may resign from office (without
need for prior or subsequent accounting) by an instrument in writing executed by
the Guarantee Trustee and delivered to the Guarantor,

                                       11
<PAGE>

which resignation shall not take effect until a Successor Guarantee Trustee has
been appointed and has accepted such appointment by instrument in writing
executed by such Successor Guarantee Trustee and delivered to the Guarantor and
the resigning Guarantee Trustee.

            (d) If no Successor Guarantee Trustee shall have been appointed and
accepted appointment as provided in this Section 4.2 within 60 days after
delivery to the Guarantor of an instrument of removal or resignation, the
removed or resigning Guarantee Trustee may petition any court of competent
jurisdiction for appointment of a Successor Guarantee Trustee. Such court may
thereupon, after prescribing such notice, if any, as it may deem proper, appoint
a Successor Guarantee Trustee.

            (e) No Guarantee Trustee shall be liable for the acts or omissions
to act of any Successor Guarantee Trustee.

            (f) Upon termination of this Guarantee or removal or resignation of
the Guarantee Trustee pursuant to this Section 4.2, the Guarantor shall pay to
the Guarantee Trustee all amounts owing for fees and reimbursement of expenses
which have accrued to the date of such termination, removal or resignation.

                                   ARTICLE 5

                                    GUARANTEE

            SECTION 5.1. GUARANTEE. The Guarantor irrevocably and
unconditionally agrees to pay in full to the Holders the Guarantee Payments
(without duplication of amounts theretofore paid by the Trust), as and when due,
regardless of any defense, right of set-off or counterclaim that the Trust may
have or assert. The Guarantor's obligation to make a Guarantee Payment may be
satisfied by direct payment of the required amounts by the Guarantor to the
Holders or by causing the Trust to pay such amounts to the Holders.
Notwithstanding anything to the contrary herein, the Guarantor retains all of
its rights under the Subordinated Indenture to extend the interest payment
period on the Junior Subordinated Notes pursuant to Section 2.10 thereof and the
Guarantor shall not be obligated hereunder to make any Guarantee Payments during
any Extension Period (as defined in the certificate evidencing the Junior
Subordinated Notes) with respect to the Distributions (as defined in the Trust
Agreement) on the Securities.

            SECTION 5.2. WAIVER OF NOTICE AND DEMAND. The Guarantor hereby
waives notice of acceptance of this Guarantee and of any liability to which it
applies or may apply, presentment, demand for payment, any right to require a
proceeding first against the Trust or any other Person before proceeding against
the Guarantor, protest, notice of nonpayment, notice of dishonor, notice of
redemption and all other notices and demands.

            SECTION 5.3. OBLIGATIONS NOT AFFECTED. The obligations, covenants,
agreements and duties of the Guarantor under this Guarantee shall be absolute
and unconditional and shall remain in full force and effect until the entire
liquidation amount of all outstanding Securities shall have been paid and such
obligation shall in no way be affected or impaired by reason of the happening
from time to time of any event, including without limitation, the following,
whether or not with notice to, or the consent of, the Guarantor:

                                       12
<PAGE>

            (a) The release or waiver, by operation of law or otherwise, of the
      performance or observance by the Trust of any express or implied
      agreement, covenant, term or condition relating to the Securities to be
      performed or observed by the Trust;

            (b) The extension of time for the payment by the Trust of all or any
      portion of the Distributions, Redemption Price, Liquidation Distribution
      or any other sums payable under the terms of the Securities or the
      extension of time for the performance of any other obligation under,
      arising out of, or in connection with the Securities (other than an
      extension of time for payment of Distributions, Redemption Price,
      Liquidation Distribution or other sum payable that results from the
      extension of any interest payment period on the Junior Subordinated Notes
      permitted by the Subordinated Indenture);

            (c) Any failure, omission, delay or lack of diligence on the part of
      the Property Trustee or the Holders to enforce, assert or exercise any
      right, privilege, power or remedy conferred on the Property Trustee or the
      Holders pursuant to the terms of the Securities, or any action on the part
      of the Trust granting indulgence or extension of any kind;

            (d) The voluntary or involuntary liquidation, dissolution, sale of
      any collateral, receivership, insolvency, bankruptcy, assignment for the
      benefit of creditors, reorganization, arrangement, composition or
      readjustment of debt of, or other similar proceedings affecting, the Trust
      or any of the assets of the Trust;

            (e) Any invalidity of, or defect or deficiency in, the Securities;

            (f) The settlement or compromise of any obligation guaranteed hereby
      or hereby incurred; or

            (g) Any other circumstance whatsoever that might otherwise
      constitute a legal or equitable discharge or defense of a guarantor, it
      being the intent of this Section 5.3 that the obligations of the Guarantor
      hereunder shall be absolute and unconditional under any and all
      circumstances.

            There shall be no obligation of the Guarantee Trustee or the Holders
to give notice to, or obtain consent of the Guarantor or any other Person with
respect to the happening of any of the foregoing.

            No setoff, counterclaim, reduction or diminution of any obligation,
or any defense of any kind or nature that the Guarantor has or may have against
any Holder shall be available hereunder to the Guarantor against such Holder to
reduce the payments to it under this Guarantee.

            SECTION 5.4. RIGHTS OF HOLDERS.

            (a) The Holders of at least a Majority in Liquidation Amount of the
Capital Securities have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Guarantee Trustee in
respect of this Guarantee or to direct the exercise of any trust or power
conferred upon the Guarantee Trustee under this Guarantee,

                                       13
<PAGE>

provided, that, subject to Section 3.1, the Guarantee Trustee shall have the
right to decline to follow any such direction if the Guarantee Trustee shall
determine that the action so directed would be unjustly prejudicial to the
Holders not taking part in such direction or if the Guarantee Trustee being
advised by counsel determines that the action or proceeding so directed may not
lawfully be taken or if the Guarantee Trustee in good faith by its board of
directors or trustees, executive committee, or a trust committee of directors or
trustees and/or Responsible Officers of the Guarantee Trustee shall determine
that the action or proceedings so directed would involve the Guarantee Trustee
in personal liability.

            (b) If the Guarantee Trustee fails to enforce this Guarantee, then
any Holder of Securities may, subject to the subordination provisions of Section
6.2, institute a legal proceeding directly against the Guarantor to enforce the
Guarantee Trustee's rights under this Guarantee without first instituting a
legal proceeding against the Trust, the Guarantee Trustee or any other person or
entity. In addition, if the Guarantor has failed to make a Guarantee Payment, a
Holder of Securities may, subject to the subordination provisions of Section
6.2, directly institute a proceeding against the Guarantor for enforcement of
the Guarantee for such payment to the Holder of the Securities of the principal
of or interest on the Junior Subordinated Notes on or after the respective due
dates specified or provided for in the Junior Subordinated Notes, and the amount
of the payment will be based on the Holder's pro rata share of the amount due
and owing on all of the Securities. The Guarantor hereby waives any right or
remedy to require that any action on this Guarantee be brought first against the
Trust or any other person or entity before proceeding directly against the
Guarantor.

            SECTION 5.5. GUARANTEE OF PAYMENT. This Guarantee creates a
guarantee of payment and not of collection. This Guarantee Agreement will not be
discharged except by payment of the Guarantee Payment in full (without
duplication) or upon the distribution of Junior Subordinated Notes to the
Holders in exchange for all of the Capital Securities.

            SECTION 5.6. SUBROGATION. The Guarantor shall be subrogated to all
(if any) rights of the Holders of Capital Securities against the Trust in
respect of any amounts paid to such Holders by the Guarantor under this
Guarantee; provided, however, that the Guarantor shall not (except to the extent
required by mandatory provisions of law) be entitled to enforce or exercise any
right that it may acquire by way of subrogation or any indemnity, reimbursement
or other agreement, in all cases as a result of payment under this Guarantee, if
at the time of any such payment, any amounts are due and unpaid under this
Guarantee. If any amount shall be paid to the Guarantor in violation of the
preceding sentence, the Guarantor agrees to hold such amount in trust for the
Holders and to pay over such amount to the Guarantee Trustee for the benefit of
the Holders.

            SECTION 5.7. INDEPENDENT OBLIGATIONS. The Guarantor acknowledges
that its obligations hereunder are independent of the obligations of the Trust
with respect to the Securities, and that the Guarantor shall be liable as
principal and as debtor hereunder to make Guarantee Payments pursuant to the
terms of this Guarantee notwithstanding the occurrence of any event referred to
in subsections 5.3(a) through 5.3(g), inclusive, hereof.

                                       14
<PAGE>

                                    ARTICLE 6

                    LIMITATION OF TRANSACTIONS; SUBORDINATION

            SECTION 6.1. LIMITATION OF TRANSACTIONS. So long as any Securities
remain outstanding, if (i) there shall have occurred an event of default under
the Subordinated Indenture with respect to the Junior Subordinated Notes, (ii)
there shall be a Guarantee Event of Default or (iii) the Guarantor shall have
given notice of its election of an Extension Period as provided in the
certificate evidencing the Junior Subordinated Notes and shall not have
rescinded such notice, or such Extension Period or any extension thereof shall
be continuing, then the Guarantor shall not, and shall not permit any subsidiary
of the Guarantor, to (x) declare or pay any dividends or distributions on, or
redeem, purchase, acquire or make a liquidation payment with respect to, any of
the Guarantor's capital stock (which included common and preferred stock) or (y)
make any payment of principal, interest or premium, if any, on or repay,
repurchase or redeem any debt securities of the Guarantor that rank on a parity
with or junior in interest to the Junior Subordinated Notes or make any
guarantee payments with respect to any guarantee by the Guarantor of the debt
securities of any subsidiary of the Guarantor if such guarantee ranks on a
parity with or junior in interest to the Junior Subordinated Notes (other than
(a) dividends or distributions in common stock of the Guarantor, (b) any
declaration of a dividend in connection with the implementation of a
shareholders' rights plan, or the issuance of stock under any such plan in the
future, or the redemption or repurchase of any such rights pursuant thereto, (c)
payments under this Guarantee, and (d) purchases of common stock related to the
issuance of common stock or rights under the Guarantor's dividend reinvestment
plan, or under any of the Guarantor's benefit plans).

            SECTION 6.2. RANKING. This Guarantee will constitute an unsecured
obligation of the Guarantor and will rank subordinate and junior in right of
payment to all Senior Indebtedness of the Company (as defined in the
Subordinated Indenture) of the Guarantor in the same manner and to the same
extent as set forth in Article XIV of the Subordinated Indenture.

            SECTION 6.3. SUBORDINATION OF COMMON SECURITIES. If a Trust
Enforcement Event has occurred and is continuing under the Trust Agreement, the
rights of the holders of the Common Securities to receive Guarantee Payments
hereunder shall be subordinated to the rights of the Holders of the Capital
Securities to receive Guarantee Payments under this Guarantee.

                                   ARTICLE 7

                                   TERMINATION

            SECTION 7.1. TERMINATION. This Guarantee shall terminate upon (i)
full payment of the Redemption Price of all Securities, (ii) distribution of the
Junior Subordinated Notes to the Holders of all the Securities or (iii) full
payment of the amounts payable in accordance with the Trust Agreement upon
liquidation of the Trust. Notwithstanding the foregoing, this Guarantee will
continue to be effective or will be reinstated, as the case may be, if at any
time any Holder of Securities must restore payment of any sums paid under the
Securities or under this Guarantee.

                                       15
<PAGE>

                                   ARTICLE 8

                                 INDEMNIFICATION

            SECTION 8.1. EXCULPATION.

            (a) No Indemnified Person shall be liable, responsible or
accountable in damages or otherwise to the Guarantor or any Covered Person for
any loss, damage, liability, expense or claim incurred by reason of any act or
omission performed or omitted by such Indemnified Person in good faith in
accordance with this Guarantee and in a manner that such Indemnified Person
reasonably believed to be within the scope of the authority conferred on such
Indemnified Person by this Guarantee or by law, except that an Indemnified
Person shall be liable for any such loss, damage or claim incurred by reason of
such Indemnified Person's negligence or willful misconduct with respect to such
acts or omissions.

            (b) An Indemnified Person shall be fully protected in relying in
good faith upon the records of the Guarantor and upon such information,
opinions, reports or statements presented to the Guarantor by any Person as to
matters the Indemnified Person reasonably believes are within such other
Person's professional or expert competence including information, opinions,
reports or statements as to the value and amount of the assets, liabilities,
profits, losses, or any other facts pertinent to the existence and amount of
assets from which Distributions to Holders of Securities might properly be paid.

            SECTION 8.2. COMPENSATION, EXPENSES AND INDEMNIFICATION.

            (a) The Guarantor agrees to pay to the Guarantee Trustee from time
to time reasonable compensation for all services rendered by it hereunder (which
compensation shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust) and to reimburse the Guarantee
Trustee upon request for all reasonable expenses, disbursements and advances
(including the reasonable fees and expenses of its attorneys and agents)
incurred or made by the Guarantee Trustee in accordance with any provision of
this Guarantee.

            (b) The Guarantor agrees to indemnify each Indemnified Person for,
and to hold each Indemnified Person harmless against any loss, liability or
expense incurred without negligence or bad faith on its part, arising out of or
in connection with the acceptance or administration of the trust or trusts
hereunder, including the costs and expenses (including reasonable legal fees and
expenses) of defending itself against, or investigating, any claim or liability
in connection with the exercise or performance of any of its powers or duties
hereunder.

            (c) The obligations of the Guarantor under this Section 8.2 shall
survive the termination of this Guarantee.

                                       16
<PAGE>

                                    ARTICLE 9

                                  MISCELLANEOUS

            SECTION 9.1. SUCCESSORS AND ASSIGNS. All guarantees and agreements
contained in this Guarantee shall bind the successors, assigns, receivers,
trustees and representatives of the Guarantor and shall inure to the benefit of
the Holders of the Securities then outstanding. Except in connection with a
consolidation, merger, sale or conveyance involving the Guarantor that is
permitted by Article XI of the Subordinated Indenture and pursuant to which the
successor or assignee agrees in writing to perform the Guarantor's obligations
hereunder, the Guarantor shall not assign its obligations hereunder.

            SECTION 9.2. AMENDMENTS. Except with respect to any changes that do
not materially adversely affect the rights of the Holders (in which case no
consent of the Holders will be required), this Guarantee may not be amended
without the prior approval of the Holders of at least a Majority in Liquidation
Amount of the Capital Securities. The provisions of Section 11.2 of the Trust
Agreement with respect to meetings of, and action by written consent of, the
Holders of the Securities apply to the giving of such approval.

            SECTION 9.3. NOTICES. All notices provided for in this Guarantee
shall be in writing, duly signed by the party giving such notice, and shall be
delivered by hand, telecopied or mailed by registered or certified mail, as
follows:

            (a) If given to the Guarantee Trustee, at the Guarantee Trustee's
      mailing address set forth below (or such other address as the Guarantee
      Trustee may give notice of to the Guarantor and the Holders of the
      Securities):

                  The Chase Manhattan Bank
                  450 West 33rd Street
                  New York, New York 10001
                  Attention:  Institutional Trust Services
                  Fax:  (212) 946-8159/60

            (b) If given to the Guarantor, at the Guarantor's mailing addresses
      set forth below (or such other address as the Guarantor may give notice of
      to the Guarantee Trustee and the Holders of the Securities):

                  Energy East Corporation
                  P.O. Box 12904
                  Albany, New York 12212-2904
                  Attention: Treasurer
                  Fax:  _______________

            (c) If given to any Holder of Securities, at the address set forth
      on the books and records of the Trust.

            All such notices shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid, except that if a

                                       17
<PAGE>

notice or other document is refused delivery or cannot be delivered because of a
changed address of which no notice was given, such notice or other document
shall be deemed to have been delivered on the date of such refusal or inability
to deliver.

            SECTION 9.4. BENEFIT. This Guarantee is solely for the benefit of
the Holders of the Securities and, subject to Section 3.1(a), is not separately
transferable from the Securities.

            SECTION 9.5. GOVERNING LAW. THIS GUARANTEE SHALL BE GOVERNED BY AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK
WITHOUT REGARD TO ITS CONFLICT OF LAWS PRINCIPLES.

                                       18
<PAGE>

            IN WITNESS WHEREOF, this Guarantee is executed as of the day and
year first above written.

                                    ENERGY EAST CORPORATION
                                    as Guarantor

                                    By:
                                        --------------------------------
                                        Name:
                                        Title:

                                    THE CHASE MANHATTAN BANK,
                                    as Guarantee Trustee

                                    By:
                                        --------------------------------
                                        Name:
                                        Title:

                                       19

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