Document:

Exhibit 4.2(B)

 

SUPPLEMENTAL INDENTURE

 

Dated as of March 1, 2007

 

To

 

Indenture of Mortgage and Deed of Trust

 

Dated as of May 1, 1921

 

 

THE CONNECTICUT LIGHT AND POWER COMPANY

 

TO

 

DEUTSCHE BANK TRUST COMPANY AMERICAS

(f/k/a BANKERS TRUST COMPANY),

Trustee

 

 

% First and Refunding Mortgage Bonds, 2007 Series A,
due March 1, 2017

% First and Refunding Mortgage Bonds, 2007 Series B,
due March 1, 2037

 

 

THE CONNECTICUT LIGHT AND POWER COMPANY

Supplemental Indenture, Dated as of March 1, 2007

 

Table of Contents

 

	
   

  	
   

  	
  Page

  
	
  Parties

  	
   

  	
  1

  
	
  Recitals

  	
   

  	
  1

  
	
  Granting Clauses

  	
   

  	
  3

  
	
  Habendum

  	
   

  	
  3

  
	
  Grant in Trust

  	
   

  	
  4

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1.

  	
  FORM AND
  PROVISIONS OF BONDS OF 2007 SERIES A

  	
  4

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
  Designation; Amount

  	
  4

  
	
  SECTION 1.02.

  	
  Form of Bonds of 2007 Series A

  	
  4

  
	
  SECTION 1.03.

  	
  Provisions of Bonds of 2007 Series A; Interest Accrual

  	
  4

  
	
  SECTION 1.04.

  	
  Transfer and Exchange of Bonds of 2007 Series A

  	
  5

  
	
  SECTION 1.05.

  	
  Consent to Amendment and Restatement of Mortgage Indenture

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2.

  	
  FORM AND
  PROVISIONS OF BONDS OF 2007 SERIES B

  	
  6

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  Designation; Amount

  	
  6

  
	
  SECTION 2.02.

  	
  Form of Bonds of 2007 Series B

  	
  6

  
	
  SECTION 2.03.

  	
  Provisions of Bonds of 2007 Series B; Interest Accrual

  	
  6

  
	
  SECTION 2.04.

  	
  Transfer and Exchange of Bonds of 2007 Series B

  	
  7

  
	
  SECTION 2.05.

  	
  Consent to Amendment and Restatement of Mortgage Indenture

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3.

  	
  REDEMPTION
  OF BONDS OF 2007 SERIES A AND BONDS OF 2007 SERIES B

  	
  8

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  Redemption of Bonds of 2007 Series A

  	
  8

  
	
  SECTION 3.02.

  	
  Redemption of Bonds of 2007 Series B

  	
  8

  
	
  SECTION 3.03.

  	
  Definitions Applicable to Redemption Provisions

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
  MISCELLANEOUS

  	
  10

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  Benefits of Supplemental Indenture and Bonds of 2007 Series A
  and Bonds of 2007 Series B

  	
  10

  
	
  SECTION 4.02.

  	
  Effect of Table of Contents and Headings

  	
  10

  
	
  SECTION 4.03.

  	
  Counterparts

  	
  10

  
	
   

  	
   

  	
   

  
	
  TESTIMONIUM

  	
  10

  
	
  SIGNATURES

  	
  11

  
	
  ACKNOWLEDGMENTS

  	
  11

  
	
   

  	
   

  	
   

  
	
  SCHEDULE A-1
  - Form of Bond of 2007 Series A, Form of Trustee’s Certificate

  	
   

  
	
  SCHEDULE A-2
  - Form of Bond of 2007 Series B, Form of Trustee’s Certificate

  	
   

  
	
  SCHEDULE B
  - Property Subject to the Lien of the Mortgage

  	
   

  

 

i

 

SUPPLEMENTAL INDENTURE, dated as
of the first day of March, 2007 between THE CONNECTICUT LIGHT AND
POWER COMPANY, a corporation organized and existing under the laws
of the State of Connecticut (hereinafter called “Company”), and DEUTSCHE BANK TRUST COMPANY AMERICAS (f/k/a BANKERS TRUST COMPANY),
a corporation organized and existing under the laws of the State of New York
(hereinafter called “Trustee”).

 

WHEREAS, the Company heretofore duly executed,
acknowledged and delivered to the Trustee a certain Indenture of Mortgage and
Deed of Trust dated as of May 1, 1921, and seventy-four Supplemental
Indentures thereto dated respectively as of May 1, 1921, February 1,
1924, July 1, 1926, June 20, 1928, June 1, 1932, July 1,
1932, July 1, 1935, September 1, 1936, October 20, 1936, December 1,
1936, December 1, 1938, August 31, 1944, September 1, 1944, May 1,
1945, October 1, 1945, November 1, 1949, December 1, 1952, December 1,
1955, January 1, 1958, February 1, 1960, April 1, 1961, September 1,
1963, April 1, 1967, May 1, 1967, January 1, 1968, October 1,
1968, December 1, 1969, January 1, 1970, October 1, 1970, December 1,
1971, August 1, 1972, April 1, 1973, March 1, 1974, February 1,
1975, September 1, 1975, May 1, 1977, March 1, 1978, September 1,
1980, October 1, 1981, June 30, 1982, October 1, 1982, July 1,
1983, January 1, 1984, October 1, 1985, September 1, 1986, April 1,
1987, October 1, 1987, November 1, 1987, April 1, 1988, November 1,
1988, June 1, 1989, September 1, 1989, December 1, 1989, April 1,
1992, July 1, 1992, October 1, 1992, July 1, 1993, July 1,
1993, December 1, 1993, February 1, 1994, February 1, 1994, June 1,
1994, October 1, 1994, June 1, 1996, January 1, 1997, May 1,
1997, June 1, 1997, June 1, 1997, May 1, 1998, May 1, 1998,
September 1, 2004, September 1, 2004, April 1, 2005 and June 1,
2006  (said Indenture of Mortgage and
Deed of Trust (i) as heretofore amended, being hereinafter generally
called the “Mortgage Indenture,” and (ii) together with said Supplemental
Indentures thereto, being hereinafter generally called the “Mortgage”), all of
which have been duly recorded as required by law, for the purpose of securing
its First and Refunding Mortgage Bonds (of which $931,845,000 aggregate
principal amount are outstanding at the date of this Supplemental Indenture) in
an unlimited amount, issued and to be issued for the purposes and in the manner
therein provided, of which Mortgage this Supplemental Indenture is intended to
be made a part, as fully as if therein recited at length;

 

WHEREAS, the Company by appropriate and sufficient
corporate action in conformity with the provisions of the Mortgage has duly
determined to create a further series of bonds under the Mortgage to be
designated “  % First and Refunding
Mortgage Bonds, 2007 Series A, due March 1, 2017” (hereinafter
generally referred to as the “bonds of 2007 Series A”), to consist of
fully registered bonds containing terms and provisions duly fixed and
determined by the Board of Directors of the Company and expressed in this
Supplemental Indenture, such fully registered bonds and the Trustee’s
certificate of its authentication thereof to be substantially in the forms
thereof respectively set forth in Schedule A-1
appended hereto and made a part hereof; and

 

WHEREAS, the execution and delivery of this
Supplemental Indenture and the issue of not in excess of One Hundred and Fifty
Million Dollars ($150,000,000) in aggregate principal amount of bonds of 2007 Series A
and other necessary actions have been duly authorized by the Board of Directors
of the Company; and

 

1

 

WHEREAS, the Company by appropriate and sufficient
corporate action in conformity with the provisions of the Mortgage has duly
determined to create a further series of bonds under the Mortgage to be
designated “  % First and Refunding
Mortgage Bonds, 2007 Series B, due March 1, 2037” (hereinafter
generally referred to as the “bonds of 2007 Series B”), to consist of
fully registered bonds containing terms and provisions duly fixed and
determined by the Board of Directors of the Company and expressed in this
Supplemental Indenture, such fully registered bonds and the Trustee’s
certificate of its authentication thereof to be substantially in the forms
thereof respectively set forth in Schedule A-2
appended hereto and made a part hereof; and

 

WHEREAS, the execution and delivery of this
Supplemental Indenture and the issue of not in excess of One Hundred and Fifty Million
Dollars ($150,000,000) in aggregate principal amount of bonds of 2007 Series B
and other necessary actions have been duly authorized by the Board of Directors
of the Company; and

 

WHEREAS, the Company proposes to execute and deliver
this Supplemental Indenture to provide for the issue of the bonds of 2007 Series A
and the bonds of 2007 Series B and to confirm the lien of the Mortgage on
the property referred to below, all as permitted by Sections 401 and 1301 of
the Mortgage Indenture; and

 

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

 

WHEREAS, the Company proposes to execute and deliver
this Supplemental Indenture to provide for the issue of the bonds of 2007 Series A
and the bonds of 2007 Series B, to subject such additional property to the
lien of the Mortgage and to confirm the lien of the Mortgage on the Property
referred to below, all as permitted by Sections 401 and 1301 of the Mortgage
Indenture; and

 

WHEREAS, all acts and things necessary to constitute
this Supplemental Indenture a valid, binding and legal instrument and to make
the bonds of 2007 Series A and the bonds of 2007 Series B, when
executed by the Company and authenticated by the Trustee, valid, binding and
legal obligations of the Company have been authorized and performed;

 

2

 

NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE OF
MORTGAGE AND DEED OF TRUST WITNESSETH:

 

That in order to secure the payment of the principal
of and interest on all bonds issued and to be issued under the Mortgage,
according to their tenor and effect, and according to the terms of the Mortgage
and this Supplemental Indenture, and to secure the performance of the covenants
and obligations in said bonds and in the Mortgage and this Supplemental
Indenture respectively contained, and for the better assuring and confirming
unto the Trustee, its successor or successors and its or their assigns, upon
the trusts and for the purposes expressed in the Mortgage and this Supplemental
Indenture, all and singular the hereditaments, premises, estates and property
of the Company thereby conveyed or assigned or intended so to be, or which the
Company may thereafter have become bound to convey or assign to the Trustee, as
security for said bonds (except such hereditaments, premises, estates and
property as shall have been disposed of or released or withdrawn from the lien
of the Mortgage and this Supplemental Indenture, in accordance with the
provisions thereof and subject to alterations, modifications and changes in
said hereditaments, premises, estates and property as permitted under the
provisions thereof), the Company, for and in consideration of the premises and
the sum of One Dollar ($1.00) to it in hand paid by the Trustee, the receipt
whereof is hereby acknowledged, and of other valuable considerations, has
granted, bargained, sold, assigned, mortgaged, pledged, transferred, set over,
aliened, enfeoffed, released, conveyed and confirmed, and by these presents
does grant, bargain, sell, assign, mortgage, pledge, transfer, set over, alien,
enfeoff, release, convey and confirm unto said Deutsche Bank Trust Company
Americas (f/k/a Bankers Trust Company), as Trustee, and its successor or
successors in the trusts created by the Mortgage and this Supplemental
Indenture, and its and their assigns, all of said hereditaments, premises,
estates and property (except and subject as aforesaid), as fully as though
described at length herein, including, without limitation of the foregoing, the
property, rights and privileges of the Company described or referred to in Schedule B hereto.

 

Together with all plants, buildings, structures,
improvements and machinery located upon said real estate or any portion
thereof, and all rights, privileges and easements of every kind and nature
appurtenant thereto, and all and singular the tenements, hereditaments and
appurtenances belonging to the real estate or any part thereof described or
referred to in Schedule B or intended so to
be, or in any wise appertaining thereto, and the reversions, remainders, rents,
issues and profits thereof, and also all the estate, right, title, interest,
property, possession, claim and demand whatsoever, as well in law as in equity,
of the Company, of, in and to the same and any and every part thereof, with the
appurtenances; except and subject as aforesaid.

 

TO HAVE AND TO HOLD all and singular the property,
rights and privileges hereby granted or mentioned or intended so to be,
together with all and singular the reversions, remainders, rents, revenues,
income, issues and profits, privileges and appurtenances, now or hereafter
belonging or in any way appertaining thereto, unto the Trustee and its
successor or successors in the trust created by the Mortgage and this
Supplemental Indenture, and its and their assigns, forever, and with like
effect as if the above described property, rights and privileges had been
specifically described at length in the Mortgage and this Supplemental
Indenture.

 

Subject, however, to permitted liens, as defined in
the Mortgage Indenture.

 

3

 

IN TRUST, NEVERTHELESS, upon the terms and trusts of
the Mortgage and this Supplemental Indenture for those who shall hold the bonds
and coupons issued and to be issued thereunder, or any of them, without
preference, priority or distinction as to lien of any of said bonds and coupons
over any others thereof by reason of priority in the time of the issue or
negotiation thereof, or otherwise howsoever, subject, however, to the
provisions in reference to extended, transferred or pledged coupons and claims
for interest set forth in the Mortgage and this Supplemental Indenture (and
subject to any sinking fund that may heretofore have been or hereafter be
created for the benefit of any particular series).

 

And it is hereby covenanted that all such bonds of 2007
Series A and bonds of 2007 Series B are to be issued, authenticated
and delivered, and that the mortgaged premises are to be held by the Trustee,
upon and subject to the trusts, covenants, provisions and conditions and for
the uses and purposes set forth in the Mortgage and this Supplemental Indenture
and upon and subject to the further covenants, provisions and conditions and
for the uses and purposes hereinafter set forth, as follows, to wit:

 

ARTICLE 1.

 

FORM AND PROVISIONS OF BONDS OF 2007 SERIES A

 

SECTION 1.01.                 Designation; Amount. 
The bonds of 2007 Series A shall be designated “   % First and Refunding Mortgage Bonds, 2007 Series A,
due March 1, 2017” and shall initially be authenticated in the aggregate
principal amount of One Hundred and Fifty Million Dollars ($150,000,000).  The initial issue of the bonds of 2007 Series A
may be effected upon compliance with the applicable provisions of the Mortgage
Indenture. Additional bonds of 2007 Series A, without limitation as to
amount, having the same terms and conditions as the bonds of 2007 Series A
(except for the date of original issuance, the initial interest payment date
and the offering price) may also be issued by the Company without the consent
of the holders of the bonds of 2007 Series A, pursuant to a separate
supplemental indenture related thereto. Such additional bonds of 2007 Series A
shall be part of the same series as the bonds of 2007 Series A.

 

SECTION 1.02.                 Form of Bonds of 2007 Series A.  The bonds of 2007 Series A shall be
issued only in fully registered form without coupons in denominations of One
Thousand Dollars ($1,000) and multiples thereof.

 

The bonds of 2007 Series A and the certificate of
the Trustee upon said bonds shall be substantially in the forms thereof
respectively set forth in Schedule A-1
appended hereto.

 

SECTION 1.03.                 Provisions of Bonds of 2007 Series A; Interest Accrual.  The bonds of 2007 Series A shall mature
on March 1, 2017, and shall bear interest, including on overdue interest, payable
semiannually on the first day of March and September of each year,
commencing September 1, 2007 at the rate specified in their title, until
the Company’s obligation in respect of the principal thereof shall be
discharged; and shall be payable both as to principal and interest at the
office or agency of the Company in the Borough of Manhattan, New York, New
York, in any coin or currency of the United States of America which at the time
of payment is legal tender for the payment of public and private debts.  The interest on the bonds of 2007 Series A,
whether in temporary or definitive form, shall be payable without presentation
of such

 

4

 

bonds; and only to
or upon the written order of the registered holders thereof of record at the
applicable record date (as hereinafter defined).  The bonds of 2007 Series A shall be
callable for redemption in whole or in part according to the terms and
provisions herein in Article 3.

 

Each bond of 2007 Series A authenticated in
accordance with the terms of this Supplemental Indenture shall be dated as of March   ,
2007 and shall bear interest on the principal amount thereof from the interest
payment date next preceding the date of authentication thereof by the Trustee
to which interest has been paid on the bonds of 2007 Series A, or if the
date of authentication thereof is prior to September 1, 2007, then from March   , 2007, or if the date of authentication
thereof be an interest payment date to which interest is being paid or a date
between the record date for any such interest payment date and such interest
payment date, then from such interest payment date.  Interest on the bonds of 2007 Series A
shall be computed on the basis of a 360-day year consisting of twelve 30-day
months, and with respect to any period less than a full month, on the basis of
the actual number of days elapsed in such period.

 

The person in whose name any bond of 2007 Series A
is registered at the close of business on any record date with respect to any
interest payment date shall be entitled to receive the interest payable on such
interest payment date notwithstanding the cancellation of such bond upon any
registration of transfer or exchange thereof subsequent to the record date and
prior to such interest payment date, except that if and to the extent the
Company shall default in the payment of the interest due on such interest
payment date, then such defaulted interest shall be paid to the person in whose
name such bond is registered on a subsequent record date for the payment of
defaulted interest if one shall have been established as hereinafter provided
and otherwise on the date of payment of such defaulted interest.  A subsequent record date may be established
by the Company by notice mailed to the owners of bonds of 2007 Series A
not less than ten (10) days preceding such record date, which record date
shall not be more than thirty (30) days prior to the subsequent interest
payment date. The term “record date” as used in this Section with respect
to any regular interest payment (i.e., March 1 or September 1) shall
mean the February 15 or August 15, as the case may be, next preceding
such interest payment date, or if such February 15 or August 15 shall
be a legal holiday or a day on which banking institutions in the Borough of
Manhattan, New York, New York are authorized by law to close, the next
preceding day which shall not be a legal holiday or a day on which such
institutions are so authorized to close.

 

SECTION 1.04.                 Transfer and Exchange of Bonds of 2007 Series A.  The bonds of 2007 Series A may be
surrendered for registration of transfer as provided in Section 305 of the
Mortgage Indenture at the office or agency of the Company in the Borough of
Manhattan, New York, New York, and may be surrendered at said office for
exchange for a like aggregate principal amount of bonds of 2007 Series A
of other authorized denominations. 
Notwithstanding the provisions of Section 305 of the Mortgage
Indenture, no charge, except for taxes or other governmental charges, shall be
made by the Company for any registration of transfer of bonds of 2007 Series A
or for the exchange of any bonds of 2007 Series A for bonds of other
authorized denominations.

 

5

 

SECTION 1.05.                 Consent to Amendment and Restatement of Mortgage Indenture.  Each holder of a bond of 2007 Series A,
solely by virtue of its acquisition thereof, including as an owner of a
book-entry interest therein, shall have and be deemed to have consented,
without the need for any further action or consent by such holder, to the
amendment and restatement of the Mortgage Indenture in the form set forth in Schedule C to the Supplemental Indenture dated as of April 1,
2005.

 

ARTICLE 2.

 

FORM AND PROVISIONS OF BONDS OF 2007 SERIES B

 

SECTION 2.01.                 Designation; Amount. 
The bonds of 2007 Series B shall be designated “   % First and Refunding Mortgage Bonds, 2007 Series B,
due March 1, 2037” and, shall initially be authenticated in the aggregate
principal amount of One Hundred and Fifty Million Dollars ($150,000,000).  The initial issue of the bonds of 2007 Series B
may be effected upon compliance with the applicable provisions of the Mortgage
Indenture. Additional bonds of 2007 Series B, without limitation as to
amount, having the same terms and conditions as the bonds of 2007 Series B
(except for the date of original issuance, the initial interest payment date
and the offering price) may also be issued by the Company without the consent
of the holders of the bonds of 2007 Series B, pursuant to a separate
supplemental indenture related thereto. Such additional bonds of 2007 Series B
shall be part of the same series as the bonds of 2007 Series B.

 

SECTION 2.02.                 Form of Bonds of 2007 Series B.  The bonds of 2007 Series B shall be
issued only in fully registered form without coupons in denominations of One
Thousand Dollars ($1,000) and multiples thereof.

 

The bonds of 2007 Series B and the certificate of
the Trustee upon said bonds shall be substantially in the forms thereof
respectively set forth in Schedule A-2
appended hereto.

 

SECTION 2.03.                 Provisions of Bonds of 2007 Series B; Interest Accrual.  The bonds of 2007 Series B shall mature
on March 1, 2037, and shall bear interest, including on overdue interest, payable
semiannually on the first day of March and September of each year,
commencing September 1, 2007 at the rate specified in their title, until
the Company’s obligation in respect of the principal thereof shall be discharged;
and shall be payable both as to principal and interest at the office or agency
of the Company in the Borough of Manhattan, New York, New York, in any coin or
currency of the United States of America which at the time of payment is legal
tender for the payment of public and private debts.  The interest on the bonds of 2007 Series B,
whether in temporary or definitive form, shall be payable without presentation
of such bonds; and only to or upon the written order of the registered holders
thereof of record at the applicable record date (as hereinafter defined).  The bonds of 2007 Series B shall be
callable for redemption in whole or in part according to the terms and
provisions herein in Article 3.

 

Each bond of 2007 Series B authenticated in
accordance with the terms of this Supplemental Indenture shall be dated as of March   , 2007 and shall bear interest on the
principal amount thereof from the interest payment date next preceding the date
of authentication thereof by the Trustee to which interest has been paid on the
bonds of 2007 Series B, or if the date of authentication thereof is prior
to September 1, 2007, then from March      ,
2007, or if the

 

6

 

date of authentication
thereof be an interest payment date to which interest is being paid or a date
between the record date for any such interest payment date and such interest
payment date, then from such interest payment date.  Interest on the bonds of 2007 Series B
shall be computed on the basis of a 360-day year consisting of twelve 30-day
months, and with respect to any period less than a full month, on the basis of
the actual number of days elapsed in such period.

 

The person in whose name any bond of 2007 Series B
is registered at the close of business on any record date with respect to any
interest payment date shall be entitled to receive the interest payable on such
interest payment date notwithstanding the cancellation of such bond upon any
registration of transfer or exchange thereof subsequent to the record date and
prior to such interest payment date, except that if and to the extent the
Company shall default in the payment of the interest due on such interest
payment date, then such defaulted interest shall be paid to the person in whose
name such bond is registered on a subsequent record date for the payment of
defaulted interest if one shall have been established as hereinafter provided
and otherwise on the date of payment of such defaulted interest.  A subsequent record date may be established
by the Company by notice mailed to the owners of bonds of 2007 Series B
not less than ten (10) days preceding such record date, which record date
shall not be more than thirty (30) days prior to the subsequent interest
payment date. The term “record date” as used in this Section with respect
to any regular interest payment (i.e., March 1 or September 1) shall
mean the February 15 or August 15, as the case may be, next preceding
such interest payment date, or if such February 15 or August 15 shall
be a legal holiday or a day on which banking institutions in the Borough of
Manhattan, New York, New York are authorized by law to close, the next
preceding day which shall not be a legal holiday or a day on which such
institutions are so authorized to close.

 

SECTION 2.04.                 Transfer and Exchange of Bonds of 2007 Series B.  The bonds of 2007 Series B may be
surrendered for registration of transfer as provided in Section 305 of the
Mortgage Indenture at the office or agency of the Company in the Borough of
Manhattan, New York, New York, and may be surrendered at said office for
exchange for a like aggregate principal amount of bonds of 2007 Series B
of other authorized denominations. 
Notwithstanding the provisions of Section 305 of the Mortgage
Indenture, no charge, except for taxes or other governmental charges, shall be
made by the Company for any registration of transfer of bonds of 2007 Series B
or for the exchange of any bonds of 2007 Series B for bonds of other
authorized denominations.

 

SECTION 2.05.                 Consent to Amendment and Restatement of Mortgage Indenture.  Each holder of a bond of 2007 Series B,
solely by virtue of its acquisition thereof, including as an owner of a
book-entry interest therein, shall have and be deemed to have consented,
without the need for any further action or consent by such holder, to the
amendment and restatement of the Mortgage Indenture in the form set forth in Schedule C to the Supplemental Indenture dated as of April 1,
2005.

 

7

 

ARTICLE 3.

 

REDEMPTION OF BONDS OF 2007 SERIES A AND BONDS OF 2007
SERIES B

 

SECTION 3.01.                 Redemption of Bonds of 2007 Series A.  The bonds of 2007 Series A are subject
to redemption prior to maturity, as a whole at any time or in part from time to
time, in accordance with the provisions of the Mortgage, upon not less than
thirty (30) days and not more than sixty (60) days prior notice (which notice
may be made subject to the deposit of redemption moneys with the Trustee before
the date fixed for redemption) given by mail as provided in the Mortgage, at
the option of the Company, at a redemption price equal to the greater of (i) 100%
of the principal amount of the bonds of 2007 Series A being redeemed or (ii) the
sum of the present values of the remaining scheduled payments of principal and
interest thereon (excluding the portion of any such interest accrued to the
redemption date), discounted to the date of redemption on a semiannual basis
(assuming a 360-day year consisting of twelve 30-day months) at the Treasury
Rate (as defined in Section 3.03), plus      basis
points, plus, in each case, accrued and unpaid interest on the principal amount
of the bonds being redeemed to the date of redemption (the “Redemption Date”).

 

So long as the bonds of 2007 Series A are
registered in the name of The Depository Trust Company, as depositary (“DTC”),
its nominee or a successor depositary, if the Company elects to redeem less
than all of the bonds of 2007 Series A, DTC’s practice is to determine by
lot the amount of the interest of each direct participant, in the bonds of 2007
Series A to be redeemed.  At all
other times, the Trustee shall draw by lot, in such manner as it deems
appropriate, the particular bonds of 2007 Series A, or portions of them,
to be redeemed.

 

Notice of redemption shall be given by mail to the
holders of bonds of 2007 Series A, which, as long as the bonds of 2007 Series A
are held in the book-entry only system, will be DTC, its nominee or a successor
depositary.  On and after the Redemption Date
(unless the Company defaults in the payment of the redemption price and
interest accrued thereon to such date), interest on the bonds of 2007 Series A,
or the portions of them so called for redemption, shall cease to accrue.

 

The bonds of 2007 Series A are not otherwise
subject to redemption.

 

SECTION 3.02.                 Redemption of Bonds of 2007 Series B.  The bonds of 2007 Series B are subject
to redemption prior to maturity, as a whole at any time or in part from time to
time, in accordance with the provisions of the Mortgage, upon not less than
thirty (30) days and not more than sixty (60) days prior notice (which notice
may be made subject to the deposit of redemption moneys with the Trustee before
the date fixed for redemption) given by mail as provided in the Mortgage, at
the option of the Company, at a redemption price equal to the greater of (i) 100%
of the principal amount of the bonds of 2007 Series B being redeemed or (ii) the
sum of the present values of the remaining scheduled payments of principal and
interest thereon (excluding the portion of any such interest accrued to the
redemption date),  discounted to the date
of redemption on a semiannual basis (assuming a 360-day year consisting of
twelve 30-day months) at the Treasury Rate, plus      basis
points, plus, in each case, accrued and unpaid interest on the principal amount
of the bonds of 2007 Series B being redeemed to the Redemption Date.

 

8

 

So long as the bonds of 2007 Series B are
registered in the name of DTC, its nominee or a successor depositary, if the
Company elects to redeem less than all of the bonds of 2007 Series B, DTC’s
practice is to determine by lot the amount of the interest of each direct
participant, in the bonds of 2007 Series B to be redeemed.  At all other times, the Trustee shall draw by
lot, in such manner as it deems appropriate, the particular bonds of 2007 Series B,
or portions of them, to be redeemed.

 

Notice of redemption shall be given by mail to the
holders of bonds of 2007 Series B, which, as long as the bonds of 2007 Series B
are held in the book-entry only system, will be DTC, its nominee or a successor
depositary.  On and after the Redemption Date
(unless the Company defaults in the payment of the redemption price and
interest accrued thereon to such date), interest on the bonds of 2007 Series B
, or the portions of them so called for redemption, shall cease to accrue.

 

The bonds of 2007 Series B are not otherwise
subject to redemption.

 

SECTION 3.03.                 Definitions Applicable to Redemption Provisions.  As used in this Article 3:

 

“Comparable Treasury Issue” means the United States
Treasury security selected by an Independent Investment Banker as having an
actual maturity comparable to the remaining term of the bonds of 2007 Series A
or the bonds of 2007 Series B being redeemed 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 the
remaining term of such bonds.

 

“Comparable Treasury Price” means with respect to any Redemption
Date (i) the average of the Reference Treasury Dealer Quotations for such
Redemption Date, after excluding the highest and lowest Reference Treasury
Dealer Quotations, or (ii) if the Company obtains fewer than four such
Reference Treasury Dealer Quotations, the average of all such quotations.

 

“Independent Investment Banker” means an independent
investment banking institution of national standing appointed by the Company.

 

“Reference
Treasury Dealer” means any four primary U.S. Government securities dealers in
The City of New York selected by the Company..

 

“Reference Treasury Dealer Quotations” means, with
respect to each Reference Treasury Dealer and any Redemption Date, the average,
as determined by the Company, 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 Company by such Reference Treasury Dealer at 3:30 p.m.,
New York time, on the third business day preceding such Redemption Date.

 

“Treasury Rate” means, with respect to any Redemption
Date, the rate per annum equal to the semiannual equivalent yield to maturity
(on a day count basis) of the Comparable Treasury Issue, assuming a price for
the Comparable Treasury Issue (expressed as a percentage of its principal
amount) equal to the Comparable Treasury Price for such Redemption Date.  The

 

9

 

Treasury Rate will be
calculated on the third business day preceding the date fixed for redemption.

 

ARTICLE 4.

 

MISCELLANEOUS

 

SECTION 4.01.                 Benefits of Supplemental Indenture and Bonds of 2007 Series A and Bonds
of 2007 Series B. 
Nothing in this Supplemental Indenture, or in the bonds of 2007 Series A
or the bonds of 2007 Series B, expressed or implied, is intended to or
shall be construed to give to any person or corporation other than the Company,
the Trustee and the holders of the bonds and interest obligations secured by
the Mortgage and this Supplemental Indenture, any legal or equitable right,
remedy or claim under or in respect of this Supplemental Indenture or of any
covenant, condition or provision herein contained.  All the covenants, conditions and provisions
hereof are and shall be for the sole and exclusive benefit of the Company, the
Trustee and the holders of the bonds and interest obligations secured by the
Mortgage and this Supplemental Indenture.

 

SECTION 4.02.                 Effect of Table of Contents and Headings.  The table of contents and the description
headings of the several Articles and Sections of this Supplemental Indenture
are inserted for convenience of reference only and are not to be taken to be
any part of this Supplemental Indenture or to control or affect the meaning,
construction or effect of the same.

 

SECTION 4.03.                 Counterparts.  For the
purpose of facilitating the recording hereof, this Supplemental Indenture may
be executed in any number of counterparts, each of which shall be and shall be
taken to be an original and all collectively but one instrument.

 

IN WITNESS WHEREOF, The
Connecticut Light and Power Company has caused these presents to be executed by
its Vice President and Treasurer and its corporate seal to be hereunto affixed,
duly attested by its Assistant Secretary, and Deutsche Bank Trust Company
Americas has caused these presents to be executed and its corporate seal to be
hereunto affixed by Deutsche Bank National Trust Company, its authorized
signatory, by two of its Assistant Vice Presidents, duly attested by a Vice
President, as of the day and year first above written.

 

[Remainder
of page intentionally left blank; signature pages follow]

 

10

 

	
   

  	
   

  	
  THE CONNECTICUT
  LIGHT AND

  POWER COMPANY

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  Name: O. Kay Comendul

  	
   

  	
   

  	
  Name: Randy A.
  Shoop

  
	
  Title: Assistant
  Secretary

  	
   

  	
   

  	
  Title: Vice
  President and Treasurer

  
	
   

  	
   

  	
   

  
	
  (SEAL)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Signed, sealed
  and delivered in the

  presence of:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
					

 

 

	
  STATE OF
  CONNECTICUT

  	
  )

  
	
   

  	
  ) ss.: Berlin

  
	
  COUNTY OF
  HARTFORD

  	
  )

  

 

On this  day of March,
2007 before me, ,           the undersigned officer,  personally appeared Randy A. Shoop and O. Kay
Comendul, who acknowledged themselves to be Vice President and Treasurer and
Assistant Secretary, respectively, of THE CONNECTICUT LIGHT AND POWER COMPANY,
a corporation, and that they, as such Vice President and Treasurer and
Assistant Secretary, being authorized so to do, executed the foregoing
instrument for the purpose therein contained, by signing the name of the
corporation by themselves as Vice President and Treasurer and Assistant Secretary,
and as their free act and deed.

 

IN WITNESS WHEREOF, I hereunto
set my hand and official seal.

 

	
   

  	
   

  
	
   

  	
  Notary Public

  My commission expires

  
	
  (SEAL)

  	
   

  

 

11

 

	
   

  	
   

  	
  DEUTSCHE BANK
  TRUST COMPANY

  AMERICAS f/k/a
  BANKERS TRUST

  COMPANY, TRUSTEE

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  DEUTSCHE BANK
  NATIONAL

  
	
  Name:

  	
   

  	
   

  	
  TRUST COMPANY,
  Authorized Signatory

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
  (SEAL)

  	
   

  	
   

  	
   

  	
  Signed, sealed
  and delivered in the

  presence of:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STATE OF NEW
  YORK

  	
  )

  	
   

  	
   

  	
   

  
	
   

  	
  ) ss.:  New
  York

  	
   

  	
   

  	
   

  
	
  COUNTY OF NEW
  YORK

  	
  )

  	
   

  	
   

  	
   

  
										

 

 

On this         
day of March, 2007 before me,                   ,
the undersigned officer, personally appeared                     
and                   acknowledged themselves to be Assistant Vice
President and Assistant Vice President, respectively, of DEUTSCHE BANK NATIONAL
TRUST COMPANY, as authorized signatory for DEUTSCHE BANK TRUST COMPANY AMERICAS
f/k/a BANKERS TRUST COMPANY, a corporation, and that they, as such Assistant
Vice President and such Assistant Vice President, being authorized so to do,
executed the foregoing instrument for the purposes therein contained, by
signing the name of the corporation by themselves as Assistant Vice President
and Assistant Vice President, and as their free act and deed.

 

IN WITNESS WHEREOF, I hereunto
set my hand and official seal.  

 

 

	
   

  	
   

  
	
   

  	
  Notary Public

  My commission expires

  
	
  (SEAL)

  	
   

  

 

12

 

SCHEDULE A-1

 

[FORM OF BOND OF 2007 SERIES A]

 

No.                             $

 

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

 

Unless this Global Security is presented by an
authorized representative of The Depository Trust Company, a New York
corporation (“DTC”), to The Connecticut Light and Power Company or its agent
for registration of transfer, exchange, or payment, and any certificate issued
is registered in the name of Cede & Co. or in such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

 

THE CONNECTICUT LIGHT AND POWER COMPANY

 

Incorporated under the Laws of the State of Connecticut

 

   %  FIRST AND REFUNDING MORTGAGE BOND, 2007 SERIES
A, DUE MARCH 1, 2017

 

PRINCIPAL DUE MARCH 1, 2017

 

FOR VALUE RECEIVED, THE CONNECTICUT LIGHT AND POWER
COMPANY, a corporation organized and existing under the laws of the State of
Connecticut (hereinafter called the Company), hereby promises to pay to                                               ,
or registered assigns, the principal sum of                                           
dollars, on the first day of March, 2017 and to pay interest, including overdue
interest, on said sum, semiannually on the first days of March and September in
each year, commencing September 1, 2007 until the Company’s obligation
with respect to said principal sum shall be discharged, at the rate per annum
specified in the title of this bond from the interest payment date next
preceding the date of authentication hereof to which interest has been paid on
the bonds of this series, or if the date of authentication

 

13

 

hereof is prior to September 1,
2007,  then from March   , 2007, or if the date of authentication
hereof is an interest payment date to which interest is being paid or a date
between the record date for any such interest payment date and such interest
payment date, then from such interest payment date.  Both principal and interest shall be payable
at the office or agency of the Company in the Borough of Manhattan, New York,
New York, 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 debts.

 

Interest on the bonds of 2007 Series A shall be
computed on the basis of a 360-day year consisting of twelve 30-day months, and
with respect to any period less than a full month, on the basis of the actual
number of days elapsed for such period.

 

Each installment of interest hereon (other than
overdue interest) shall be payable to the person who shall be the registered
owner of this bond at the close of business on the record date, which shall be
the February 15 or August 15, as the case may be, next preceding the
interest payment date, or, if such February 15 or August 15 shall be
a legal holiday or a day on which banking institutions in the Borough of
Manhattan, New York, New York, are authorized by law to close, the next
preceding day which shall not be a legal holiday or a day on which such
institutions are so authorized to close.

 

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

 

This bond shall not become or be valid or obligatory
until the certificate of authentication hereon shall have been signed by
Deutsche Bank Trust Company Americas (f/k/a Bankers Trust Company and
hereinafter with its successors as defined in the Mortgage hereinafter referred
to, generally called the Trustee), or by such a successor.

 

14

 

IN WITNESS WHEREOF, The Connecticut Light and Power
Company has caused this bond to be executed in its corporate name and on its
behalf by its                     
by his signature or a facsimile thereof, and its corporate seal to be affixed
or imprinted hereon and attested by the manual or facsimile signature of its                     .

 

Dated as of March   , 2007.

	
   

  	
  THE CONNECTICUT
  LIGHT AND

  	
   

  
	
   

  	
  POWER COMPANY

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

15

 

[FORM OF TRUSTEE’S CERTIFICATE]

 

Deutsche Bank Trust Company Americas hereby certifies
that this bond is one of the bonds described in the within mentioned Mortgage.

 

	
   

  	
  DEUTSCHE BANK
  TRUST COMPANY

  
	
   

  	
  AMERICAS f/k/a
  BANKERS TRUST

  
	
   

  	
  COMPANY, TRUSTEE

  
	
   

  	
   

  
	
   

  	
  By:

  	
  DEUTSCHE BANK NATIONAL

  
	
   

  	
   

  	
  TRUST COMPANY, Authorized

  Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:
  Authorized Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
  Dated
                            ,
  20

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:
  Authorized Officer

  

 

16

 

[FORM OF BOND]

 

[REVERSE]

 

THE CONNECTICUT LIGHT AND POWER COMPANY

 

  % FIRST AND REFUNDING MORTGAGE
BOND, 2007 SERIES A, DUE MARCH 1, 2017

 

This bond is one of an issue of bonds of the Company,
of an unlimited authorized amount of coupon bonds or registered bonds without
coupons, or both, known as its First and Refunding Mortgage Bonds, all issued
or to be issued in one or more series, and is one of a series of said bonds
limited in principal amount to One Hundred and Fifty Million Dollars ($150,000,000),
consisting only of registered bonds without coupons and designated “   % First and Refunding Mortgage Bonds, 2007 Series A,
due March 1, 2017” all of which bonds are issued or are to be issued
under, and equally and ratably secured by, a certain Indenture of Mortgage and
Deed and Trust dated as of May 1, 1921, and by seventy-five Supplemental
Indentures dated respectively as of May 1, 1921, February 1, 1924, July 1,
1926, June 20, 1928, June 1, 1932, July 1, 1932, July 1,
1935, September 1, 1936, October 20, 1936, December 1, 1936, December 1,
1938, August 31, 1944, September 1, 1944, May 1, 1945, October 1,
1945, November 1, 1949, December 1, 1952, December 1, 1955, January 1,
1958, February 1, 1960, April 1, 1961, September 1, 1963, April 1,
1967, May 1, 1967, January 1, 1968, October 1, 1968, December 1,
1969, January 1, 1970, October 1, 1970, December 1, 1971, August 1,
1972, April 1, 1973, March 1, 1974, February 1, 1975, September 1,
1975, May 1, 1977, March 1, 1978, September 1, 1980, October 1,
1981, June 30, 1982, October 1, 1982, July 1, 1983, January 1,
1984, October 1, 1985, September 1, 1986, April 1, 1987, October 1,
1987, November 1, 1987, April 1, 1988, November 1, 1988, June 1,
1989, September 1, 1989, December 1, 1989, April 1, 1992, July 1,
1992, October 1, 1992, July 1, 1993, July 1, 1993, December 1,
1993, February 1, 1994, February 1, 1994, June 1, 1994, October 1,
1994, June 1, 1996, January 1, 1997, May 1, 1997, June 1,
1997, June 1, 1997, May 1, 1998, May 1, 1998, September 1,
2004, September 1, 2004, April 1, 2005, June 1, 2006 and March 1,
2007 (said Indenture of Mortgage and Deed of Trust and Supplemental Indentures
being collectively referred to herein as the “Mortgage”), all executed by the
Company to Deutsche Bank Trust Company Americas f/k/a Bankers Trust Company, as
Trustee, all as provided in the Mortgage to which reference is made for a
statement of the property mortgaged and pledged, the nature and extent of the
security, the rights of the holders of the bonds in respect thereof and the
terms and conditions upon which the bonds may be issued and are secured; but
neither the foregoing reference to the Mortgage nor any provision of this bond
or of the Mortgage shall affect or impair the obligation of the Company, which
is absolute, unconditional and unalterable, to pay at the maturities herein
provided the principal of and interest on this bond as herein provided.  The principal of this bond may be declared or
may become due on the conditions, in the manner and at the time set forth in
the Mortgage, upon the happening of an event of default as in the Mortgage
provided. The Mortgage was amended and restated in its entirety on April 7,
2005 in the form set forth in Schedule C to the Supplemental Indenture
dated as of April 1, 2005.

 

This bond is transferable by the registered holder
hereof in person or by attorney upon surrender hereof at the office or agency
of the Company in the Borough of Manhattan, New York, New York, together with a
written instrument of transfer in approved form, signed by the

 

17

 

holder, and a new bond or
bonds of this series for a like principal amount in authorized denominations
will be issued in exchange, all as provided in the Mortgage.  Prior to due presentment for registration of
transfer of this bond the Company and the Trustee may deem and treat the
registered owner hereof as the absolute owner hereof, whether or not this bond
be overdue, for the purpose of receiving payment and for all other purposes,
and neither the Company nor the Trustee shall be affected by any notice to the
contrary.

 

This bond is exchangeable at the option of the
registered holder hereof upon surrender hereof, at the office or agency of the
Company in the Borough of Manhattan, New York, New York, for an equal principal
amount of bonds of this series of other authorized denominations, in the manner
and on the terms provided in the Mortgage.

 

Bonds of this series are to be issued initially under
a book-entry only system and, except as hereinafter provided, registered in the
name of The Depository Trust Company, New York, New York (“DTC”) or its
nominee, which shall be considered to be the holder of all bonds of this series
for all purposes of the Mortgage, including, without limitation, payment by the
Company of principal of and interest on such bonds of this series and receipt
of notices and exercise of rights of holders of such bonds of this series.  There shall be a single bond of this series
which shall be immobilized in the custody of DTC with the owners of book-entry
interests in bonds of this series (“Book-Entry Interests”) having no right to
receive bonds of this series in the form of physical securities or
certificates.  Ownership of Book-Entry
Interests shall be shown by book-entry on the system maintained and operated by
DTC, its participants (the “Participants”) and certain persons acting through
the Participants.  Transfers of ownership
of Book-Entry Interests are to be made only by DTC and the Participants by that
book-entry system, the Company and the Trustee having no responsibility
therefor so long as bonds of this series are registered in the name of DTC or
its nominee.  DTC is to maintain records
of positions of Participants in bonds of this series, and the Participants and
persons acting through Participants are to maintain records of the purchasers
and owners of Book-Entry Interests.  If
DTC or its nominee determines not to continue to act as a depository for the
bonds of this series in connection with a book-entry only system, another
depository, if available, may act instead and the single bond of this series
will be transferred into the name of such other depository or its nominee, in
which case the above provisions will continue to apply to the new
depository.  If the book-entry only
system for bonds of this series is discontinued for any reason, upon surrender
and cancellation of the single bond of this series registered in the name of
the then depository or its nominee, new registered bonds of this series will be
issued in authorized denominations to the holders of Book-Entry Interests in
principal amounts coinciding with the amounts of Book-Entry Interests shown on
the book-entry system immediately prior to the discontinuance thereof.  Neither the Trustee nor the Company shall be
responsible for the accuracy of the interests shown on that system.

 

The bonds of 2007 Series A are subject to redemption
prior to maturity, as a whole at any time or in part from time to time, in
accordance with the provisions of the Mortgage, upon not less than thirty (30)
days and not more than sixty (60) days prior notice (which notice may be made
subject to the deposit of redemption moneys with the Trustee before the date
fixed for redemption) given by mail as provided in the Mortgage, at the option
of the Company, at a redemption price equal to the greater of (i) 100% of
the principal amount of the bonds being redeemed or (ii) the sum of the
present values of the remaining scheduled payments of principal

 

18

 

and interest thereon (excluding
the portion of any such interest accrued to the redemption date), discounted to
the date of redemption on a semiannual basis (assuming a 360-day year
consisting of twelve 30-day  months) at
the Treasury Rate, plus      basis points, plus, in each
case, accrued and unpaid interest on the principal amount of the bonds being
redeemed to the date of redemption (the “Redemption Date”).

 

“Comparable Treasury Issue” means the United State
Treasury security selected by an Independent Investment Banker as having an
actual maturity comparable to the remaining term of the bonds being redeemed 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 the remaining term of such bonds.

 

“Comparable Treasury Price” means with respect to any
Redemption Date (i) the average of the Reference Treasury Dealer
Quotations for such Redemption Date, after excluding the highest and lowest
Reference Treasury Dealer Quotations, or (ii) if the Company obtains fewer
than four such Reference Treasury Dealer Quotations, the average of all such
quotations.

 

“Independent Investment Banker” means an independent
investment banking institution of national standing appointed by the Company.

 

“Reference
Treasury Dealer” means any four primary U.S. Government securities dealers in
The City of New York selected by the Company.

 

“Reference Treasury Dealer Quotations” means, with
respect to each Reference Treasury Dealer and any Redemption Date, the average,
as determined by the Company, 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 Company by such Reference Treasury Dealer at 3:30 p.m.,
New York time, on the third business day preceding such Redemption Date.

 

“Treasury Rate” means, with respect to any Redemption
Date, the rate per annum equal to the semiannual equivalent yield to maturity
(on a day count basis) of the Comparable Treasury Issue, assuming a price for
the Comparable Treasury Issue (expressed as a percentage of its principal
amount) equal to the Comparable Treasury Price for such Redemption Date.  The Treasury Rate will be calculated on the
third business day preceding the date fixed for redemption.

 

So long as the bonds are registered in the name of The
Depository Trust Company, as depositary (“DTC”), its nominee or a successor
depositary, if the Company elects to redeem less than all of the bonds, DTC’s
practice is to determine by lot the amount of the interest of each direct
participant, in the bonds of such series to be redeemed.  At all other times, the Trustee shall draw by
lot, in such manner as it deems appropriate, the particular bonds, or portions
of them, to be redeemed.

 

Notice of redemption shall be given by mail to the
holders of bonds, which, as long as the bonds are held in the book-entry only
system, will be DTC, its nominee or a successor depositary.  On and after the date fixed for redemption
(unless the Company defaults in the payment of the redemption price and
interest accrued thereon to such date), interest on the bonds of such series,
or the portions of them so called for redemption, shall cease to accrue.

 

19

 

The Mortgage provides that the Company and the
Trustee, with consent of the holders of not less than 66-2/3% in aggregate
principal amount of the bonds at the time outstanding which would be affected
by the action proposed to be taken, may by supplemental indenture add any
provisions to or change or eliminate any of the provisions of the Mortgage or
modify the rights of the holders of the bonds and coupons issued thereunder;
provided, however, that without the consent of the holder hereof no such
supplemental indenture shall affect the terms of payment of the principal of or
interest or premium on this bond, or reduce the aforesaid percentage of the
bonds the holders of which are required to consent to such a supplemental
indenture, or permit the creation by the Company of any mortgage or pledge or
lien in the nature thereof ranking prior to or equal with the lien of the
Mortgage or deprive the holder hereof of the lien of the Mortgage on any of the
property which is subject to the lien thereof.

 

As set forth in the Supplemental Indenture
establishing the terms and series of the bonds of this series, each holder of a
bond of 2007 Series A, solely by virtue of its acquisition thereof,
including as an owner of a book-entry interest therein, has and has been deemed
to have consented, without the need for any further action or consent by such
holder, to the amendment and restatement of the Mortgage in the form set forth
in Schedule C appended to the Supplemental
Indenture dated as of April 1, 2005.

 

No recourse shall be had for the payment of the
principal of or the interest on this bond, or any part thereof, or for any
claim based thereon or otherwise in respect thereof, to any incorporator, or
any past, present or future stockholder, officer or director of the Company,
either directly or indirectly, by virtue of any statute or by enforcement of
any assessment or otherwise, and any and all liability of the said
incorporators, stockholders, officers or directors of the Company in respect to
this bond is hereby expressly waived and released by every holder hereof.

 

20

 

SCHEDULE A-2

 

[FORM OF BOND OF 2007 SERIES B]

 

No.                             $

 

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

 

Unless this Global Security is presented by an
authorized representative of The Depository Trust Company, a New York
corporation (“DTC”), to The Connecticut Light and Power Company or its agent
for registration of transfer, exchange, or payment, and any certificate issued
is registered in the name of Cede & Co. or in such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

 

THE CONNECTICUT LIGHT AND POWER COMPANY

 

Incorporated under the Laws of the State of Connecticut

 

  % FIRST AND REFUNDING MORTGAGE
BOND, 2007 SERIES B, DUE MARCH 1, 2037

 

PRINCIPAL DUE MARCH 1, 2037

 

FOR VALUE RECEIVED, THE CONNECTICUT LIGHT AND POWER
COMPANY, a corporation organized and existing under the laws of the State of
Connecticut (hereinafter called the Company), hereby promises to pay to                                               ,
or registered assigns, the principal sum of                                           
dollars, on the first day of March, 2037 and to pay interest, including overdue
interest, on said sum, semiannually on the first days of March and September in
each year, commencing September 1, 2007 until the Company’s obligation
with respect to said principal sum shall be discharged, at the rate per annum
specified in the title of this bond from the interest payment date next
preceding the date of authentication hereof to which interest has been paid on
the bonds of this series, or if the date of authentication hereof is prior to September 1,
2007,  then from March   , 2007, or if the date of authentication
hereof is an interest payment date to which interest is being paid or a date
between the record

 

21

 

date for any such
interest payment date and such interest payment date, then from such interest
payment date.  Both principal and
interest shall be payable at the office or agency of the Company in the Borough
of Manhattan, New York, New York, 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 debts.

 

Interest on the bonds of 2007 Series B shall be
computed on the basis of a 360-day year consisting of twelve 30-day months, and
with respect to any period less than a full month, on the basis of the actual
number of days elapsed for such period.

 

Each installment of interest hereon (other than
overdue interest) shall be payable to the person who shall be the registered
owner of this bond at the close of business on the record date, which shall be
the February 15 or August 15, as the case may be, next preceding the
interest payment date, or, if such February 15 or August 15 shall be
a legal holiday or a day on which banking institutions in the Borough of
Manhattan, New York, New York, are authorized by law to close, the next preceding
day which shall not be a legal holiday or a day on which such institutions are
so authorized to close.

 

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

 

This bond shall not become or be valid or obligatory
until the certificate of authentication hereon shall have been signed by
Deutsche Bank Trust Company Americas (f/k/a Bankers Trust Company and
hereinafter with its successors as defined in the Mortgage hereinafter referred
to, generally called the Trustee), or by such a successor.

 

22

 

IN WITNESS WHEREOF, The Connecticut Light and Power
Company has caused this bond to be executed in its corporate name and on its
behalf by its                     
by his signature or a facsimile thereof, and its corporate seal to be affixed
or imprinted hereon and attested by the manual or facsimile signature of its                     .

 

 

Dated as of March   , 2007.

	
   

  	
  THE CONNECTICUT
  LIGHT AND

  POWER COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

23

 

[FORM OF TRUSTEE’S CERTIFICATE]

 

Deutsche Bank Trust Company Americas hereby certifies
that this bond is one of the bonds described in the within mentioned Mortgage.

 

	
   

  	
  DEUTSCHE BANK
  TRUST COMPANY

  
	
   

  	
  AMERICAS f/k/a
  BANKERS TRUST

  
	
   

  	
  COMPANY, TRUSTEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  DEUTSCHE BANK NATIONAL

  
	
   

  	
   

  	
  TRUST COMPANY, Authorized

  Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:
  Authorized Officer

  
	
  Dated
                            ,
  20

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:
  Authorized Officer

  

 

24

 

[FORM OF BOND]

 

[REVERSE]

 

THE CONNECTICUT LIGHT AND POWER COMPANY

 

  % FIRST AND REFUNDING MORTGAGE
BOND, 2007 SERIES B, DUE MARCH 1, 2037

 

This bond is one of an issue of bonds of the Company,
of an unlimited authorized amount of coupon bonds or registered bonds without
coupons, or both, known as its First and Refunding Mortgage Bonds, all issued
or to be issued in one or more series, and is one of a series of said bonds
limited in principal amount to One Hundred and Fifty Million Dollars ($150,000,000),
consisting only of registered bonds without coupons and designated “  % First and Refunding Mortgage Bonds, 2007 Series B,
due March 1, 2037” all of which bonds are issued or are to be issued
under, and equally and ratably secured by, a certain Indenture of Mortgage and
Deed and Trust dated as of May 1, 1921, and by seventy-five Supplemental
Indentures dated respectively as of May 1, 1921, February 1, 1924, July 1,
1926, June 20, 1928, June 1, 1932, July 1, 1932, July 1,
1935, September 1, 1936, October 20, 1936, December 1, 1936, December 1,
1938, August 31, 1944, September 1, 1944, May 1, 1945, October 1,
1945, November 1, 1949, December 1, 1952, December 1, 1955, January 1,
1958, February 1, 1960, April 1, 1961, September 1, 1963, April 1,
1967, May 1, 1967, January 1, 1968, October 1, 1968, December 1,
1969, January 1, 1970, October 1, 1970, December 1, 1971, August 1,
1972, April 1, 1973, March 1, 1974, February 1, 1975, September 1,
1975, May 1, 1977, March 1, 1978, September 1, 1980, October 1,
1981, June 30, 1982, October 1, 1982, July 1, 1983, January 1,
1984, October 1, 1985, September 1, 1986, April 1, 1987, October 1,
1987, November 1, 1987, April 1, 1988, November 1, 1988, June 1,
1989, September 1, 1989, December 1, 1989, April 1, 1992, July 1,
1992, October 1, 1992, July 1, 1993, July 1, 1993, December 1,
1993, February 1, 1994, February 1, 1994, June 1, 1994, October 1,
1994, June 1, 1996, January 1, 1997, May 1, 1997, June 1,
1997, June 1, 1997, May 1, 1998, May 1, 1998, September 1,
2004, September 1, 2004, April 1, 2005, June 1, 2006 and March 1,
2007 (said Indenture of Mortgage and Deed of Trust and Supplemental Indentures
being collectively referred to herein as the “Mortgage”), all executed by the
Company to Deutsche Bank Trust Company Americas f/k/a Bankers Trust Company, as
Trustee, all as provided in the Mortgage to which reference is made for a
statement of the property mortgaged and pledged, the nature and extent of the
security, the rights of the holders of the bonds in respect thereof and the
terms and conditions upon which the bonds may be issued and are secured; but
neither the foregoing reference to the Mortgage nor any provision of this bond
or of the Mortgage shall affect or impair the obligation of the Company, which
is absolute, unconditional and unalterable, to pay at the maturities herein
provided the principal of and interest on this bond as herein provided.  The principal of this bond may be declared or
may become due on the conditions, in the manner and at the time set forth in
the Mortgage, upon the happening of an event of default as in the Mortgage
provided. The Mortgage was amended and restated in its entirety on April 7,
2005 in the form set forth in Schedule C to the Supplemental Indenture
dated as of April 1, 2005.

 

This bond is transferable by the registered holder
hereof in person or by attorney upon surrender hereof at the office or agency
of the Company in the Borough of Manhattan, New York, New York, together with a
written instrument of transfer in approved form, signed by the

 

25

 

holder, and a new bond or
bonds of this series for a like principal amount in authorized denominations
will be issued in exchange, all as provided in the Mortgage.  Prior to due presentment for registration of
transfer of this bond the Company and the Trustee may deem and treat the registered
owner hereof as the absolute owner hereof, whether or not this bond be overdue,
for the purpose of receiving payment and for all other purposes, and neither
the Company nor the Trustee shall be affected by any notice to the contrary.

 

This bond is exchangeable at the option of the registered
holder hereof upon surrender hereof, at the office or agency of the Company in
the Borough of Manhattan, New York, New York, for an equal principal amount of
bonds of this series of other authorized denominations, in the manner and on
the terms provided in the Mortgage.

 

Bonds of this series are to be issued initially under
a book-entry only system and, except as hereinafter provided, registered in the
name of The Depository Trust Company, New York, New York (“DTC”) or its
nominee, which shall be considered to be the holder of all bonds of this series
for all purposes of the Mortgage, including, without limitation, payment by the
Company of principal of and interest on such bonds of this series and receipt
of notices and exercise of rights of holders of such bonds of this series.  There shall be a single bond of this series
which shall be immobilized in the custody of DTC with the owners of book-entry
interests in bonds of this series (“Book-Entry Interests”) having no right to
receive bonds of this series in the form of physical securities or
certificates.  Ownership of Book-Entry
Interests shall be shown by book-entry on the system maintained and operated by
DTC, its participants (the “Participants”) and certain persons acting through
the Participants.  Transfers of ownership
of Book-Entry Interests are to be made only by DTC and the Participants by that
book-entry system, the Company and the Trustee having no responsibility
therefor so long as bonds of this series are registered in the name of DTC or its
nominee.  DTC is to maintain records of
positions of Participants in bonds of this series, and the Participants and
persons acting through Participants are to maintain records of the purchasers
and owners of Book-Entry Interests.  If
DTC or its nominee determines not to continue to act as a depository for the
bonds of this series in connection with a book-entry only system, another
depository, if available, may act instead and the single bond of this series
will be transferred into the name of such other depository or its nominee, in
which case the above provisions will continue to apply to the new
depository.  If the book-entry only
system for bonds of this series is discontinued for any reason, upon surrender
and cancellation of the single bond of this series registered in the name of
the then depository or its nominee, new registered bonds of this series will be
issued in authorized denominations to the holders of Book-Entry Interests in
principal amounts coinciding with the amounts of Book-Entry Interests shown on
the book-entry system immediately prior to the discontinuance thereof.  Neither the Trustee nor the Company shall be
responsible for the accuracy of the interests shown on that system.

 

The bonds of 2007 Series B are subject to
redemption prior to maturity, as a whole at any time or in part from time to
time, in accordance with the provisions of the Mortgage, upon not less than
thirty (30) days and not more than sixty (60) days prior notice (which notice
may be made subject to the deposit of redemption moneys with the Trustee before
the date fixed for redemption) given by mail as provided in the Mortgage, at
the option of the Company, at a redemption price equal to the greater of (i) 100%
of the principal amount of the bonds being redeemed or (ii) the sum of the
present values of the remaining scheduled payments of principal

 

26

 

and interest thereon (excluding
the portion of any such interest accrued to the redemption date), discounted to
the date of redemption on a semiannual basis (assuming a 360-day year
consisting of twelve 30-day  months) at
the Treasury Rate, plus   basis points,
plus, in each case, accrued and unpaid interest on the principal amount of the
bonds being redeemed to the date of redemption (the “Redemption Date”).

 

“Comparable Treasury Issue” means the United States
Treasury security selected by an Independent Investment Banker as having an
actual maturity comparable to the remaining term of the bonds being redeemed
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 the remaining term of such bonds.

 

“Comparable Treasury Price” means with respect to any
Redemption Date (i) the average of the Reference Treasury Dealer
Quotations for such Redemption Date, after excluding the highest and lowest
Reference Treasury Dealer Quotations, or (ii) if the Company obtains fewer
than four such Reference Treasury Dealer Quotations, the average of all such
quotations.

 

“Independent Investment Banker” means an independent
investment banking institution of national standing appointed by the Company.

 

“Reference
Treasury Dealer” means any four primary U.S. Government securities dealers in
The City of New York selected by the Company.

 

“Reference Treasury Dealer Quotations” means, with
respect to each Reference Treasury Dealer and any Redemption Date, the average,
as determined by the Company, 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 Company by such Reference Treasury Dealer at 3:30 p.m.,
New York time, on the third business day preceding such Redemption Date.

 

“Treasury Rate” means, with respect to any Redemption
Date, the rate per annum equal to the semiannual equivalent yield to maturity
(on a day count basis) of the Comparable Treasury Issue, assuming a price for
the Comparable Treasury Issue (expressed as a percentage of its principal
amount) equal to the Comparable Treasury Price for such Redemption Date.  The Treasury Rate will be calculated on the
third business day preceding the date fixed for redemption.

 

So long as the bonds are registered in the name of The
Depository Trust Company, as depositary (“DTC”), its nominee or a successor
depositary, if the Company elects to redeem less than all of the bonds, DTC’s
practice is to determine by lot the amount of the interest of each direct
participant, in the bonds of such series to be redeemed.  At all other times, the Trustee shall draw by
lot, in such manner as it deems appropriate, the particular bonds, or portions
of them, to be redeemed.

 

Notice of redemption shall be given by mail to the
holders of bonds, which, as long as the bonds are held in the book-entry only
system, will be DTC, its nominee or a successor depositary.  On and after the date fixed for redemption
(unless the Company defaults in the payment of the redemption price and
interest accrued thereon to such date), interest on the bonds of such series,
or the portions of them so called for redemption, shall cease to accrue.

 

27

 

The Mortgage provides that the Company and the
Trustee, with consent of the holders of not less than 66-2/3% in aggregate
principal amount of the bonds at the time outstanding which would be affected
by the action proposed to be taken, may by supplemental indenture add any
provisions to or change or eliminate any of the provisions of the Mortgage or
modify the rights of the holders of the bonds and coupons issued thereunder;
provided, however, that without the consent of the holder hereof no such
supplemental indenture shall affect the terms of payment of the principal of or
interest or premium on this bond, or reduce the aforesaid percentage of the
bonds the holders of which are required to consent to such a supplemental
indenture, or permit the creation by the Company of any mortgage or pledge or
lien in the nature thereof ranking prior to or equal with the lien of the
Mortgage or deprive the holder hereof of the lien of the Mortgage on any of the
property which is subject to the lien thereof.

 

As set forth in the Supplemental Indenture
establishing the terms and series of the bonds of this series, each holder of a
bond of 2007 Series B, solely by virtue of its acquisition thereof,
including as an owner of a book-entry interest therein, has and has been deemed
to have consented, without the need for any further action or consent by such holder,
to the amendment and restatement of the Mortgage in the form set forth in Schedule C appended to the Supplemental Indenture dated
as of April 1, 2005.

 

No recourse shall be had for the payment of the
principal of or the interest on this bond, or any part thereof, or for any
claim based thereon or otherwise in respect thereof, to any incorporator, or
any past, present or future stockholder, officer or director of the Company,
either directly or indirectly, by virtue of any statute or by enforcement of
any assessment or otherwise, and any and all liability of the said
incorporators, stockholders, officers or directors of the Company in respect to
this bond is hereby expressly waived and released by every holder hereof.

 

28

 

SCHEDULE B

 

[PROPERTY SUBJECT TO THE LIEN OF THE MORTGAGE]

 

29Exhibit 4.2(C)

 

PSNH Exhibit 4.2 Form of Supplemental Indenture

 

PUBLIC SERVICE COMPANY

OF NEW HAMPSHIRE

AND

WACHOVIA BANK, NATIONAL ASSOCIATION

 

Successor to FIRST UNION
NATIONAL BANK

 

Formerly Known as FIRST
FIDELITY BANK, NATIONAL ASSOCIATION,

NEW JERSEY

 

Successor to BANK OF NEW
ENGLAND, NATIONAL ASSOCIATION

(Formerly Known as NEW ENGLAND MERCHANTS NATIONAL BANK)

and to

NEW BANK OF NEW ENGLAND, NATIONAL ASSOCIATION, TRUSTEE

 

SUPPLEMENTAL INDENTURE

Dated as
of            , 20

 

TO ISSUE
SERIES   

FIRST MORTGAGE BONDS

 

$    ,000,000
First Mortgage Bonds (Series    )

 

 

TABLE OF
CONTENTS

 

	
   

  	
   

  	
  Page

  
	
  Date
  and Parties

  	
   

  
	
   

  	
  Recitals

  	
  1

  
	
   

  	
  Granting
  Clauses

  	
  1

  
	
   

  	
  Exceptions

  	
  1

  
	
   

  	
  Habendum

  	
  1

  
	
   

  	
  Declaration
  in Trust

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  1—Series            Bonds

  	
  7

  
	
   

  	
  1.01.    Designation;
  Amount

  	
  7

  
	
   

  	
  1.02.    Form
  of Bonds of 2004 Series

  	
  7

  
	
   

  	
  1.03.    Provisions
  of Bonds of 2004 Series    ; Interest Accrual

  	
  7

  
	
   

  	
  1.04.    Transfer
  and Exchange of Bonds of Series

  	
  7

  
	
   

  	
  1.05.    Redemption
  of the Series    Bonds

  	
  8

  
	
   

  	
  1.06.    Payment
  Date Not a Business Day

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  2—MISCELLANEOUS

  	
  8

  
	
   

  	
  2.01.    Recitals

  	
  8

  
	
   

  	
  2.02.    Benefits
  of Supplemental Indenture

  	
  8

  
	
   

  	
  2.03.    Effect
  of Supplemental Indenture

  	
  8

  
	
   

  	
  2.04.    Termination

  	
  9

  
	
   

  	
  2.05.    Trust
  Indenture Act

  	
  9

  
	
   

  	
  2.06.    Counterparts

  	
  9

  
	
   

  	
  2.07.    Notices

  	
  9

  

 

Testimonium

Signatures

 

Schedule A—Form
of Series    Bonds

Schedule B—Description of Certain Properties Acquired
Since            .

Acknowledgments

Endorsement

 

ii

 

THIS                        SUPPLEMENTAL
INDENTURE dated as
of                        ,
20    , between PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
(hereinafter with its successors and assigns generally called the Company), a
corporation duly organized and existing under the laws of The State of New
Hampshire, having its principal place of business at 780 North Commercial
Street in Manchester, New Hampshire 03101, and WACHOVIA BANK, NATIONAL
ASSOCIATION, successor to First Union National Bank, formerly known as First
Fidelity Bank, National Association, New Jersey, successor to Bank of New
England, National Association (formerly known as New England Merchants National
Bank) and to New Bank of New England, National Association, said Wachovia Bank,
National Association (hereinafter with its successors generally called the
Trustee), being a national banking association duly organized and existing
under the laws of the United States of America, having a corporate trust office
at 21 South Street, Third Floor, Morristown, New Jersey 07960, and duly
authorized to execute the trusts hereof.

 

WHEREAS, the Company heretofore duly executed and
delivered to Bank of New England, National Association (formerly known as New
England Merchants National Bank), as predecessor trustee, its General and
Refunding Mortgage Indenture (hereinafter, as amended by the Tenth Supplemental
Indenture dated as of May 1, 1991, generally referred to as the “Original
Indenture” and sometimes referred to, with each and every prior indenture
supplemental thereto and each and every other instrument, including
this                        Supplemental
Indenture, which the Company, pursuant to the provisions thereof, may execute
with the Trustee and which is therein stated to be supplemental to the Original
Indenture, as the “Indenture”), dated as of August 15, 1978, but actually
executed on September 20, 1978, and recorded, among other places, in
Hillsborough County, New Hampshire, Registry of Deeds, Book 2640, Page 334, in
York County, Maine, Registry of Deeds, Book 2417, Page 01, in Concord, Vermont,
Land Records, Book 44, Page 129A, and in the Office of the Secretary of the
State of Connecticut in Volume 56, Page G of Railroad Mortgages (together with
certificates with respect thereto recorded in the Town Clerk’s offices of Waterford
and Berlin, Connecticut), to which this instrument is supplemental, and in
modification and confirmation thereof has executed and delivered to
(i) Bank of New England, National Association (formerly known as New
England Merchants National Bank) as predecessor trustee nine duly recorded
indentures supplemental thereto, and (ii) to First Fidelity Bank, National
Association, New Jersey, a Tenth Supplemental Indenture dated as of May 1,
1991 (hereinafter generally referred to as the Tenth Supplemental Indenture)
thereto duly recorded, whereby substantially all the properties of the Company
used by it in its business, whether then owned or thereafter acquired, with
certain reservations, exceptions and exclusions fully set forth in the Original
Indenture were given, granted, bargained, sold, transferred, assigned, pledged,
mortgaged and conveyed to the Trustee, its successors and assigns, in trust
upon the terms and conditions set forth therein to secure its General and
Refunding Mortgage Bonds issued and to be issued thereunder, and for other
purposes more particularly specified therein; and

 

1

 

WHEREAS, on January 6, 1991, Bank of New
England, National Association was declared insolvent, and New Bank of New England,
National Association, pursuant to a purchase and assumption agreement dated as
of January 6, 1991 between it and the Federal Deposit Insurance
Corporation as receiver of Bank of New England, National Association, acquired
and succeeded to all of the right, title, interest, authority and appointment
of Bank of New England, National Association, as Trustee under the Indenture,
which succession and appointment were ratified and confirmed by the Board of
Directors of the Company on February 21, 1991, all as more particularly
recited in the Agreement as to Resignation of Trustee and Appointment of
Successor Trustee (the “Resignation and Appointment Agreement”), by and among
the Company, New Bank of New England, National Association, and First Fidelity
Bank, National Association, New Jersey, recorded with the Tenth Supplemental
Indenture; and

 

WHEREAS, pursuant to the Resignation and Appointment
Agreement, New Bank of New England, National Association resigned as successor
trustee and First Fidelity Bank, National Association, New Jersey succeeded to
the trusts created by the Indenture; and

 

WHEREAS, First Fidelity Bank, National Association,
New Jersey was succeeded by First Union National Bank; and

 

WHEREAS, pursuant to The Third Amended Joint Plan of
Reorganization (the “Plan”), dated December 28, 1989 (Case
No. 88-00043), as confirmed by order of the United States Bankruptcy Court
for the District of New Hampshire dated April 20, 1990, all bonds
outstanding under the First Mortgage Indenture dated as of January 1,
1943, as from time to time amended and supplemented, between the Company and
Old Colony Trust Company, as trustee (to which each of The First National Bank
of Boston and Maryland National Bank has been successor trustee) have been paid
in full and said First Mortgage Indenture has been released and is of no
further force or effect, all bonds outstanding under the Third Mortgage
Indenture dated as of February 15, 1986, as from time to time amended and
supplemented, between the Company and First Fidelity Bank, National
Association, New Jersey, as trustee, have been paid in full and said Third
Mortgage Indenture has been released and is of no further force or effect, and
all bonds issued prior to the date of execution of the Tenth Supplemental Indenture
and outstanding under the Indenture have been paid in full; and

 

WHEREAS, the actions contemplated by the Resignation
and Appointment Agreement and the Tenth Supplemental Indenture have been
authorized and directed by Order of the United States Bankruptcy Court for the
District of New Hampshire dated January 18, 1991 in Case
No. 88-00043, which Order authorized certain transactions and procedures
necessary to consummate the Plan and approved certain modifications of the Plan
related thereto; and

 

WHEREAS, all applicable requirements of the Plan and
said Order have been complied with; and

 

WHEREAS, pursuant to the Tenth Supplemental
Indenture the Company effected the amendments to the Indenture specified in the
Tenth Supplemental Indenture, including amendments to reflect the release and
discharge of the Company’s First Mortgage Indenture dated as of January 1,
1943, as supplemented and amended, and to reflect that, as a result, the
Indenture is now a First Mortgage Indenture, the bonds issued and to be issued
under the Indenture will be First Mortgage Bonds of the Company, and the
Original Indenture as it may heretofore and hereafter be supplemented and
amended shall henceforth be known and referred to as the Company’s First
Mortgage Indenture dated as of August 15, 1978; and

 

WHEREAS, the Company by appropriate and sufficient
corporate action in conformity with the terms of the Indenture duly caused to
be issued seven new series of bonds under the Indenture designated First
Mortgage Bonds, Series A through G, said Series A through
Series G Bonds being in an aggregate principal amount of $858,985,000 and
consisting of fully registered bonds containing the terms and provisions duly
fixed and determined by the Board of Directors of the Company and expressed in
Schedule B to the Tenth Supplemental Indenture; and

 

2

 

WHEREAS, on May 15, 1996, $172,500,000
aggregate principal amount of the Company’s 8(7)/8%
First Mortgage Bonds, Series A, matured and were paid and canceled; and

 

WHEREAS, as of April 1, 1998 the Company by
appropriate and sufficient corporate action in conformity with the terms of the
Indenture duly caused to be issued a new series of bonds under the Indenture
designated as First Mortgage Bonds, Series H, said Series H Bonds
being in an aggregate principal amount of $75,000,000 and containing the terms
and provisions duly fixed and determined by the Board of Directors of the
Company and expressed in Schedule A to the Eleventh Supplemental
Indenture; and

 

WHEREAS, on May 15, 1998, $170,000,000
aggregate principal amount of the Company’s 9.17% First Mortgage Bonds, Series,
B, matured and were paid and canceled; and

 

WHEREAS, on April 22, 1999, the Revolving
Credit Agreement dated as of April 23, 1998 (the “Credit Agreement”)
terminated, the Credit Borrowings thereunder were indefeasibly paid in full in
accordance with the terms thereof and the obligations of the several Lenders to
make advances to the Company under the Credit Agreement were terminated; the bonds
of Series H were deemed paid and all obligations of the Company to pay the
principal of, premium, if any, and interest on the bonds of Series H was
satisfied and discharged; and the $75,000,000 aggregated principal amount of
the Company’s First Mortgage Bonds, Series H, were canceled; and

 

WHEREAS, as of March 30, 2001 the Company sold
its interest in the Millstone II Nuclear Generating Station, located in
Waterford, Connecticut, and with the sale of said property, no longer owns any
property located in Connecticut which is subject to the lien of the Indenture,
and is no longer subject to the jurisdiction of the Connecticut Department of
Public Utilities Control; and

 

WHEREAS, pursuant to the Series A, B and C Loan
and Trust Agreements dated October 1, 2001 (herein called the “Series A,
B and C PCRB Agreements”), by and among the Business Finance Authority of the
State of New Hampshire (herein called “the Authority”), the Company and the
State Street Bank and Trust Company, as trustee (herein called the “Series A,
B and C PCRB Trustee”), the Authority issued concurrently: $89,250,000 in
principal amount of its Pollution Control Revenue Bonds (Public Service Company
of New Hampshire Project—2001 Tax Exempt Series A)(herein called the “Series A
PCR Bonds”) and loaned the proceeds from the sale of the Series A PCR
Bonds to the Company. Proceeds of the loan were used to refund (i) the
Authority’s $66,000,000 aggregate principal amount 7.65% Pollution Control
Revenue Bonds (Public Service Company of New Hampshire Project—1991 Tax-Exempt
Series A)(the “1991 Series A Bonds”), and (ii) a portion of the
Authority’s $112,500,000 aggregate principal amount 7.65% Pollution Control
Revenue Bonds (Public Service Company of New Hampshire Project—1991 Tax-Exempt
Series C)(the “1991 Series C Bonds”); $89,250,000 in principal amount
of its Pollution Control Revenue Bonds (Public Service Company of New Hampshire
Project—2001 Tax-Exempt Series B) (herein called the “series B PCR
Bonds”) and loaned the proceeds from the sale of the Series B PCR Bonds to
the Company. Proceeds of the loan were used to refund a portion of the 1991
Series C Bonds; and $108,985,000 in principal amount of its Pollution
Control Revenue Bonds (Public Service Company of New Hampshire Project—2001 Tax
Exempt Series C) (herein called the “Series C PCR Bonds”) and loaned
the proceeds from the sale of the Series C PCR Bonds to the Company.
Proceeds of the loan were used to refund the Authority’s $108,985,000 aggregate
principal amount 7.50% Pollution Control Revenue Bonds (Public Service Company
of New Hampshire Project—1991 Tax-Exempt Series B)(the “1991 Series B
Bonds”). The proceeds of the 1991 Series A, B and C PCR Bonds were used to
finance and refinance a portion of the Company’s share of expenditures, including
financing costs, relating to the construction of certain pollution control,
sewage and/or solid waste disposal facilities required for the operation of the
Seabrook nuclear-fueled, steam electric generating plant located in Seabrook,
New Hampshire, in which the Company owned and undivided 35.6% interest; and

 

WHEREAS, the Series A, B and C Bonds were
special obligations of the Authority, payable solely out of the revenues and
other receipts, funds and moneys derived by the Authority under the Series A,
B and C Agreements and from any amounts otherwise available under the
Series A, B and C Agreements for the

 

3

 

payment
of the Series A, B and C Bonds, and such revenues and other receipts,
funds moneys and amounts are, pursuant to the Series A, B and C PCRB
Agreements, assigned and pledged by the Authority to the Series A, B and C
PCRB Trustee as security for the Series A, B and C PCR Bonds and include
loan payments required to be made by the Company to the Series A, B and C
PCRB Trustee for the account of the Authority pursuant to the Series A, B
and C PCRB Agreements in amounts equal to the amounts payable with respect to
the Series A, B and C Bonds; and

 

WHEREAS, in consideration of the loan being provided
by the Authority under, and pursuant to the provisions of, the Series A, B
and C PCRB Agreements, the Company issued: $89,250,000 principal amount of its
First Mortgage Bonds, Series I (hereinafter generally referred to as the “Series I
Bonds” or the “bonds of Series I”) to evidence and secure the Company’s
obligation under the Series A PCRB Agreement to make loan payments as
aforesaid and to provide security for the Series A PCR Bonds; $89,250,000
principal amount of its First Mortgage Bonds, Series J (hereinafter
generally referred to as the “Series J Bonds” or the “bonds of Series J”)
to evidence and secure the Company’s obligation under the Series B PCRB
Agreement to make loan payments as aforesaid and to provide security for the
Series B PCR Bonds; and $108,985,000 principal amount of its First
Mortgage Bonds, Series K (hereinafter generally referred to as the “Series K
Bonds” or the “bonds of Series K”) to evidence and secure the Company’s
obligation under the Series C PCRB Agreement to make loan payments as
aforesaid and to provide security for the Series C PCR Bonds; and

 

WHEREAS, the execution and delivery of the Twelfth
Supplemental Indenture and the issue of not exceeding Eighty Nine Million Two
Hundred Fifty Thousand Dollars ($89,250,000) in aggregate principal amount of
bonds of Series I, Eighty Nine Million Two Hundred Fifty Thousand Dollars
($89,250,000) in aggregate principal amount of bonds Series J and One
Hundred Eight Million Nine Hundred Eighty Five Thousand Dollars in aggregate
principal amount of bonds of Series K, and other necessary actions were
duly authorized by the Executive Committee of the Board of Directors of the
Company; and

 

WHEREAS, as a result of a merger, First Union
National Bank changed its name to Wachovia Bank, National Association and
remains as Trustee under the Indenture; and

 

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

 

WHEREAS, the execution and delivery of
this                        Supplemental
Indenture and the issue of not exceeding            Million
Dollars ($    ,000,000) in aggregate principal amount of
bonds of Series    , and other necessary actions have been
duly authorized by the Board of Directors of the Company; and

 

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

 

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

 

NOW, THEREFORE, in consideration of the premises,
and of the acceptance of said Series    First Mortgage
Bonds by the holder thereof, and of the sum of $1.00 duly paid by the Trustee
to the Company, and of other good and valuable considerations, the receipt
whereof is hereby acknowledged, and in confirmation of and supplementing the
Original Indenture as previously supplemented by said twelve

 

4

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

ROCKINGHAM COUNTY—Auburn, Atkinson, Brentwood,
Candia, Chester, Danville, Deerfield, Derry, East Kingston, Epping, Exeter,
Fremont, Greenland, Hampstead, Hampton, Hampton Falls, Kensington, Kingston,
Londonderry, New Castle, Newfields, Newington, Newmarket, Newton, North

 

5

 

Hampton,
Northwood, Nottingham, Portsmouth, Raymond, Rye, Sandown, Seabrook, South
Hampton, Stratham, Windham;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6

 

ARTICLE 1

SERIES    BONDS

 

SECTION 1.01.    Designation;
Amount.    The bonds of
Series    shall be designated “First Mortgage Bonds,
Series    ” and, subject to Section 2.10 of the
Original Indenture, shall not
exceed            Million
Dollars ($    ,000,000) in aggregate principal amount at
any one time outstanding. The Trustee shall authenticate and deliver up to
$    ,000,000 aggregate principal amount of
Series    Bonds at any time upon application by the Company
and compliance with the applicable provisions of the Original Indenture.

 

SECTION 1.02.    Form
of Bonds of 200    Series    .    The
bonds of Series    shall be issued only in fully registered
form without coupons in denominations of $1,000 and multiples thereof. The
Bonds of Series    and the certificate of the Trustee upon
said bonds shall be substantially in the forms thereof respectively set forth
in Schedule A appended hereto.

 

SECTION 1.03.    Provisions
of Bonds of 20    Series    ; Interest
Accrual.    The bonds of
Series    shall mature on                        ,
20    , and shall bear interest, payable on the interest
payment dates applicable from time to time to the
Series    Bonds, until the Company’s obligation in respect
of the principal thereof shall be discharged, in amounts equal to the interest
payments due on the Series    Bonds, and shall be payable
both as to principal and interest at the corporate trust office of the Trustee
at Wachovia Bank, National Association in Charlotte, North Carolina or the
corporate trust office of its successors, in any coin or currency of the United
States of America which at the time of payment is legal tender for the payment
of public and private debts. The interest on the
Series    Bonds, whether in temporary or definitive form,
shall be payable without presentation of such bonds, and only to or upon the
written order of the registered holders thereof of record at the applicable
record date. The Series    Bonds shall be callable for
redemption in whole or in part according to the terms and provisions provided
herein in Section 1.05.

 

Each Series    Bond shall be
dated the date of authentication thereof by the Trustee, and shall bear
interest on the principal amount thereof from the interest payment date next
preceding the date thereof to which interest has been paid on the Bonds of said
series, or if the date thereof is prior to the record date (as hereinafter
defined) with respect to the first interest payment date then from the date of
original issue of the Series    Bonds, or if the date
thereof be an interest payment date to which interest is being paid or a date
between the record date for any such interest payment date and such interest
payment date, then from such interest payment date.

 

The person in whose name any bond of
Series    is registered at the close of business on any
record date (as hereinafter defined) with respect to any interest payment date
shall be entitled to receive the interest payable on such interest payment date
notwithstanding the cancellation of such bond upon any registration of transfer
or exchange thereof subsequent to the record date and prior to such interest
payment date, except that if and to the extent the Company shall default in the
payment of the interest due on such interest payment date, then such defaulted interest
shall be paid to the person in whose name such bond is registered on a
subsequent record date for the payment of defaulted interest if one shall have
been established as hereinafter provided and otherwise on the date of payment
of such defaulted interest. A subsequent record date may be established by the
Company by notice mailed to the owners of the bonds of
Series    not less than ten (10) days preceding such
record date, which record date shall not be more than thirty (30) days
prior to the subsequent interest payment date. The term “record date” as used
in this Section with respect to any regular interest payment date shall mean
the day next preceding such interest payment date, or if such day shall not be
a Business Day, the next preceding day which shall be a Business Day.

 

SECTION 1.04.    Transfer
and Exchange of Bonds of Series    .    The
bonds of
Series            may
be surrendered for registration of transfer as provided in Section 2.8 of
the Original Indenture as

 

7

 

amended
by the Tenth Supplemental Indenture at the corporate trust office of the
Trustee at Wachovia Bank, National Association in Charlotte, North Carolina or
the corporate trust offices of its successors, and may be surrendered at said
office for exchange for a like aggregate principal amount of bonds of
Series            of
other authorized denominations. Notwithstanding the provisions of
Section 2.7 of the Original Indenture, no charge, except for taxes or
other governmental charges, shall be made by the Company for any registration
of transfer of bonds of Series     or for the exchange of
any bonds of Series    for such bonds of other authorized
denominations.

 

SECTION 1.05.    Redemption
of the Series    Bonds.    The
bonds of Series    are not subject to redemption at the
option of the Company prior
to                        ,
20    . Thereafter, the Bonds of
Series    shall be redeemable as a whole at any time or in
part from time to time in accordance with the provisions of the Indenture and
upon not less than thirty (30) days’ prior notice given by mail as
provided in the Indenture (which notice may state that it is subject to the
receipt of the redemption moneys by the Trustee on or before the date fixed for
redemption and which notice shall be of no effect unless such moneys are so
received on or before such date), either at the option of the Company, or for
the purpose of any applicable provision of the Indenture, at the following
prices:

 

[TO BE INSERTED]

 

SECTION 1.06.    Payment
Date Not a Business Day.    If any redemption or
maturity date for principal, premium or interest with respect to the
Series    Bonds shall be (i) a Sunday or a legal
holiday, or (ii) a day on which banking institutions are authorized
pursuant to law to close and on which the corporate trust offices in North
Carolina or New Jersey of the Trustee are not open for business, then the
payment thereof may be made on the next succeeding day not a day specified in
(i) or (ii) with the same force and effect as if made on the
specified payment date and not interest shall accrue for the period after the
specified payment date.

 

ARTICLE 2

MISCELLANEOUS PROVISIONS

 

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

 

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

 

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

 

8

 

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

 

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

 

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

 

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

 

IN WITNESS WHEREOF, PUBLIC SERVICE COMPANY OF NEW
HAMPSHIRE has caused this instrument to be executed and its corporate seal to
be hereto affixed, by its officers, thereunto duly authorized, and WACHOVIA
BANK, NATIONAL ASSOCIATION has caused this instrument to be executed and its
corporate seal to be hereto affixed by its officers thereunto duly authorized,
all as of the day and year first above written but actually executed
on                        ,
20    .

 

PUBLIC
SERVICE COMPANY OF NEW HAMPSHIRE

 

[CORPORATE
SEAL]                                      By

 

Name:

 

Title:

Attest:

 

Name:

Title:

 

9

 

Signed,
sealed and delivered by

Public Service Company of New

Hampshire in the presence of us:

 

Witnesses

 

WACHOVIA
BANK, NATIONAL ASSOCIATION

 

as
Trustee as aforesaid 

 

 

	
  By:
  

  	
   

  	
   

  	
   

  
	
  Name:

  Title:

  [CORPORATE SEAL]

  Attest:

  	
   

  

 

Name:

Title:

Signed,
sealed and delivered by

 

Wachovia
Bank, National Association, in

the
presence of us:

 

Witnesses

 

10

 

SCHEDULE A

(FORM OF BONDS OF
SERIES        )

THIS BOND IS TRANSFERABLE
ONLY AS PROVIDED HEREIN 

 

	
  No.

  	
   

  	
  $            ,000,000

  

 

PUBLIC SERVICE COMPANY OF
NEW HAMPSHIRE

 

Incorporated under the Laws
of the State of New Hampshire

 

FIRST MORTGAGE BOND,
SERIES   

PRINCIPAL
DUE                        ,
20

 

FOR VALUE RECEIVED, PUBLIC SERVICE COMPANY OF NEW
HAMPSHIRE, a corporation organized and existing under the laws of the State of
New Hampshire (hereinafter called the Company), hereby promises to pay
to                        or
registered assigns, subject to the conditions set forth in this Bond, the
principal sum
of                        Million
($    ,000,000), on the first day of
            ,
200    , and to pay interest on said sum, on each of the
interest payment dates applicable from time to time to the
Series    Bonds (as defined on the reverse hereof), until
the Company’s obligation with respect to said principal sum shall be
discharged, in amounts equal to the interest payments due on such
Series    Bonds. This Bond shall bear interest as aforesaid
from the interest payment date next preceding the date hereof to which such
interest has been paid on the Bonds of this series, or if the date hereof is
prior to the record date with respect to the first interest payment date then
from the date of original issue of the Bonds of this series, or if the date
hereof is an interest payment date to which interest is being paid or date
between the record date for any such interest payment date and such interest
payment date, then from such interest payment date.

 

The bonds of Series    shall be
payable both as to principal and interest at the corporate trust office of the
Trustee in Charlotte, North Carolina or the corporate trust offices of its
successors, in any coin or currency of the United States of America which at
the time of payment is legal tender for the payment of public and private
debts. The interest on the bonds of Series    , whether in
temporary or definitive form, shall be payable without presentation of such
bonds, and only to or upon the written order of the registered holders thereof
of record at the applicable record date. The bonds of
Series    shall be repayable in whole or in part according
to the terms and provisions provided in Article 1 of the Supplemental
Indenture establishing the terms and conditions of bonds of this Series.

 

Each installment of interest hereon (other than
overdue interest) due on any interest payment date shall be payable to the
person who shall be the registered owner of this bond at the close of business
on the record date, which shall be the day next preceding such interest payment
date, or if such day shall not be a Business Day, the next preceding day which
is a Business Day.

 

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

 

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

 

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

 

11

 

Dated
as
of                        ,            .

 

PUBLIC
SERVICE COMPANY OF NEW HAMPSHIRE 

 

 

	
  By

  	
   

  	
   

  
	
  Name:

  
	
  Title:
  Vice President

  
	
  Attest:

  
	
   

  	
   

  
	
  Name:

  
	
  Title:
  Assistant Secretary

  

 

[FORM OF TRUSTEE’S
CERTIFICATE]

 

Wachovia Bank, National Association hereby certifies
that this bond is one of the bonds described in the within mentioned Indenture.

 

WACHOVIA
BANK, NATIONAL ASSOCIATION, TRUSTEE

 

	
  By

  	
   

  	
   

  
	
  Name:

  
	
  Title:
  Authorized Officer

  

 

12

 

[FORM OF BOND]

[REVERSE]

PUBLIC SERVICE COMPANY OF
NEW HAMPSHIRE

First Mortgage Bond, Series

 

This Bond is one of a series of Bonds in fully
registered form known as the “First Mortgage Bonds,
Series    ” of the Company, limited
to                        Million
Dollars ($    ,000,000) in aggregate principal amount, and
issued under and pursuant to a First Mortgage Indenture between the Company and
Wachovia Bank, National Association as successor by merger to New England
Merchants National Bank (later known as Bank of New England, National
Association), as Trustee, dated as of August 15, 1978, as amended, and
pursuant to which Wachovia Bank, National Association is now Successor Trustee
(said First Mortgage Indenture (i) as amended by the Tenth Supplemental
Indenture thereto, being hereinafter generally called the “Original Indenture,”
and (ii) together with all indentures expressly stated to be supplemental
thereto, being hereinafter generally called the “Indenture”), and together with
all bonds of all series now outstanding or hereafter issued under the Indenture
being equally and ratably secured (except as any sinking or other analogous
fund, established in accordance with the provisions of the Indenture, may
afford additional security for the bonds of any particular series) by the
Indenture, to which Indenture (executed counterparts of which are on file at
the corporate trust office of the Trustee in Morristown, New Jersey) reference
is hereby made for a description of the nature and extent of the security, the
rights thereunder of the holders of bonds issued and to be issued thereunder,
the rights, duties and immunities thereunder of the Trustee, the rights and obligations
thereunder of the Company, and the terms and conditions upon which Bonds of
this series, and bonds of other series, are issued and are to be issued; but
neither the foregoing reference to the Indenture nor any provision of this Bond
or of the Indenture shall affect or impair the obligation of the Company, which
is absolute, unconditional and unalterable, to pay at the maturities herein
provided the principal of and interest on this Bond as herein provided.

 

The bonds of this Series    in
permanent form are issuable in denominations of one thousand dollars ($1,000)
and multiples thereof.

 

This Bond is transferable by the registered owner
hereof upon surrender hereof at the corporate trust office of the Trustee,
together with a written instrument of transfer in approved form, signed by the
owner or his duly authorized attorney, and a new Bond or Bonds of this series
for a like principal amount will be issued in exchange, all as provided in the
Indenture. Prior to due presentment for registration of transfer of this Bond,
the Company and the Trustee may deem and treat the registered owner hereof as
the absolute owner hereof, whether or not this Bond be overdue, for the purpose
of receiving payment and for all other purposes, and neither the Company nor
the Trustee shall be affected by any notice to the contrary.

 

This Bond is exchangeable at the option of the
registered holder hereof upon surrender hereof, at the corporate trust office
of the Trustee in Charlotte, North Carolina or the corporate trust offices of
its successors, for an equal principal amount of bonds of this series of other
authorized denominations, in the manner and on the terms provided in the
Indenture.

 

The Bonds of this series are not subject to
redemption at the option of the Company prior
to                        ,
20    . Thereafter, the Bonds of
Series            shall
be redeemable as a whole at any time or in part from time to time in accordance
with the provisions of the Indenture and upon not less than thirty
(30) days’ prior notice given by mail as provided in the Indenture (which
notice may state that it is subject to the receipt of the redemption moneys by
the Trustee on or before the date fixed for redemption and which notice shall
be of no effect unless such moneys are so received on or before such date),
either at the option of the Company, or for the purpose of any applicable
provision of the Indenture, at the following prices:

 

[TO BE INSERTED]

 

13

 

Except as provided in the immediately preceding
paragraph, the Bonds of this series are not subject to redemption.

 

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

 

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

 

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

 

14

 

SCHEDULE B

Description of Certain
Properties

Acquired

Since                

 

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

 

	
  Grantor

  	
   

  	
  Date

  	
   

  	
  Book/Page

  	
   

  	
  County/Town

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

15

 

	
  THE
  STATE OF

  CONNECTICUT

  	
  )

  
	
  COUNTY
  OF HARTFORD

  	
  ) ss. Berlin

  

 

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

 

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

 

Name:

Notary Public in and for the
State of Connecticut

        My
Commission Expires:

 

(Notarial
Seal)

 

16

 

	
  THE STATE OF NEW

  JERSEY

  	
  )

  
	
  COUNTY OF

  	
  ) ss.

  

 

        Then
personally appeared before
me                        ,
                        ,
of Wachovia Bank, National Association, a national banking association, and
acknowledged the foregoing instrument to be their free act and deed in their
said capacities and the free act and deed of said corporation.

 

Witness my hand and notarial seal
this    day
of                        ,
200    ,
at                        ,
New Jersey.

 

Name:

Notary Public in and for the
State of New Jersey

        My
Commission Expires:

 

(Notarial
Seal)

 

17

 

ENDORSEMENT

 

Wachovia Bank, National Association, Trustee, being
the mortgagee in the foregoing Supplemental Indenture, hereby consents to the
cutting of any timber standing upon any of the lands covered by said
Supplemental Indenture and to the sale of any such timber so cut and of any
personal property covered by said Supplemental Indenture to the extent, but
only to the extent, that such sale is permitted under the provisions of the
Original Indenture as referred to in, and as amended by, the Tenth Supplemental
Indenture thereto dated as of May 1, 1991, and the Twelfth Supplemental
Indenture dated as of December 1, 2001.

 

WACHOVIA
BANK, NATIONAL ASSOCIATION

as
Trustee as aforesaid 

 

 

	
  By
  

  	
   

  	
   

  
	
  Name:
  

  
	
  itle:

  

 

Signed,
sealed and acknowledged

on
behalf of Wachovia Bank, National Association

in
the presence of us:

 

Witnesses

CORPORATE
SEAL

 

18

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