Document:

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                                                                     Exhibit 4.3

THIS NOTE IS A GLOBAL NOTE. UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (THE "DEPOSITORY ") TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY), 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.

REGISTERED                                            PRINCIPAL AMOUNT:
No: 4                                                 $350,000,000

                        APACHE FINANCE CANADA CORPORATION

CUSIP: 03746AAC4                4.375% NOTES DUE 2015

         APACHE FINANCE CANADA CORPORATION, an unlimited liability company
organized under the laws of Nova Scotia, Canada (the "Company", which term
includes any successor corporation under the Indenture hereinafter referred to),
for value received hereby promises to pay to Cede & Co., or registered assigns,
the principal sum of Three Hundred Fifty Million Dollars on May 15, 2015
("Stated Maturity") and to pay interest thereon from May 15, 2003 or from the
most recent date in respect of which interest has been paid or duly provided
for, on May 15 and November 15 of each year (each, an "Interest Payment Date"),
commencing November 15, 2003, and at Stated Maturity or upon such other date on
which the principal of this Note becomes due and payable, whether by declaration
of acceleration, notice of redemption or otherwise, and including any Redemption
Date or Change in Control Purchase Date (each such date, "Maturity"), at the
rate of 4.375% per annum, until the principal hereof and premium, if any, hereon
and any Additional Amounts (as defined below) is paid or duly made available for
payment. The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in the Indenture referred to below,
be paid to the Person in whose name this Note (or one or more Predecessor
Securities) is registered as of the close of business on May 1 or November 1, as
the case may be (whether or not a Business Day), next preceding such Interest
Payment Date (each such date, a "Regular Record Date"). Any such interest which
is payable, but is not punctually paid or duly provided for, on any Interest
Payment Date shall forthwith cease to be payable to the Holder of this Note on
such Regular Record Date, and shall be paid to the Person in whose name this
Note (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such defaulted interest to
be fixed by the Trustee, notice whereof shall be given to the Holder of this
Note not less than 10 days prior to such Special Record Date, or may be paid in
any other lawful manner not inconsistent with the requirements of any securities
exchange on which the Notes may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in the Indenture. Any
interest paid on this Note shall be increased to the extent necessary to pay
Additional Amounts as set forth in this Note.

         Payment of the principal of, and premium, if any, and interest on, or
any Additional Amounts in respect of, this Note will be made at the office or
agency maintained for that purpose in the Borough of Manhattan, The City of New
York, in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts; provided,
however, that payment of interest may be made at the option of the Company by
check mailed to the Person in whose name this Note is registered at the close of
business on the related record date; provided further, that, notwithstanding
anything else contained herein, if this Note is a Global Security and is held in
book-entry form through the facilities of the Depository, payments on this Note
will be made to the Depository or its nominee in accordance with the
arrangements then in effect between the Trustee and the Depository.

         Reference is hereby made to the further provisions of this Note set
forth on the succeeding pages hereof, which further provisions shall for all
purposes have the same effect as if set forth herein.

CERTIFICATE OF AUTHENTICATION

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

                                        JPMorgan Chase Bank, as Trustee

                                        By:
                                           -------------------------------------
                                             Authorized Officer

                                      -1-
<PAGE>
                        APACHE FINANCE CANADA CORPORATION
                              4.375% NOTES DUE 2015

         This Note is one of a duly authorized issue of Securities of the
Company issued under an Indenture, dated as of November 23, 1999 (the
"Indenture"), among the Company, Apache Corporation (the "Guarantor") and
JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank (the "Trustee",
which term includes any successor trustee under the Indenture), designated as
the 4.375% Notes due 2015 (the "Notes"). Reference is made to the Indenture for
a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Guarantor, the Trustee and the Holders
of the Notes and of the terms upon which the Notes are, and are to be,
authenticated and delivered. All terms used in this Note and the Guarantee set
forth below which are not defined herein and which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.

         The Indenture provides for the defeasance of the Notes, the Guarantees
and certain covenants in certain circumstances.

         This Note is unsecured as to payment of principal, premium, if any,
Additional Amounts, if any, and interest, and ranks pari passu with all other
unsecured unsubordinated indebtedness of the Company.

         Interest payments on this Note will include interest accrued to but
excluding the applicable Interest Payment Date or Maturity hereof, as the case
may be. Interest payments for this Note shall be computed and paid on the basis
of a 360-day year of twelve 30-day months. For the purposes of this Note, if
interest is calculated on the basis of a year of 360 days, each rate of interest
determined pursuant to such calculation expressed as an annual rate for the
purposes of the Interest Act (Canada) is equivalent to such rate (as so
determined) multiplied by the actual number of days in the calendar year in
which the same is to be ascertained and divided by 360.

         In the case where the applicable Interest Payment Date or Maturity with
respect hereto, as the case may be, does not fall on a Business Day, payment of
principal, premium, if any, Additional Amounts, if any, or interest otherwise
payable on such day need not be made on such day, but may be made on the next
succeeding Business Day with the same force and effect as if made on the
Interest Payment Date or at Maturity and, unless the Company or the Guarantor
default on such payment, no interest shall accrue with respect to such payment
for the period from and after the Interest Payment Date or such Maturity, as the
case may be, to the date of payment.

         "Business Day" means any day, other than a Saturday or Sunday, that is
neither a legal holiday nor a day on which commercial banks are authorized or
required by law, regulation or executive order to close in The City of New York.

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

         As set forth in, and subject to the provisions of, the Indenture, no
Holder of any Note will have any right to institute any proceeding with respect
to the Indenture, the Notes or the Guarantees, or for any remedy thereunder,
unless (i) such Holder shall have previously given to the Trustee written notice
of a continuing Event of Default with respect to the Notes, (ii) the Holders of
not less than 25% in principal amount of the Outstanding Notes shall have made
written request, and offered reasonable indemnity, to the Trustee to institute
such proceeding as Trustee, (iii) the Trustee shall have failed to institute
such proceeding within 60 days after receipt of such written notice, request and
offer of indemnity and (iv) the Trustee shall not have received from the Holders
of a majority in principal amount of the Outstanding Notes a direction
inconsistent with such request within such 60 day period; provided, however,
that such limitations do not apply to a suit instituted by the Holder hereof for
the enforcement of payment of the principal of, premium, if any, Additional
Amounts, if any, or any interest on this Note on or after the respective due
dates expressed herein or to require the purchase of this Note by the Company
upon the occurrence of a Change in Control in accordance with the Indenture.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the Guarantor and the rights of the Holders of the Securities of
each series thereunder to be affected under the Indenture at any time by the
Company and the Trustee

                                      -2-
<PAGE>
with the consent of the Holders of not less than 66-2/3% in aggregate principal
amount of such Securities then Outstanding of each series to be affected. The
Indenture also contains provisions permitting the Holders of not less than a
majority in principal amount of the Securities of each series thereunder at the
time Outstanding, on behalf of the Holders of all Securities of such series, to
waive compliance by the Company with certain restrictive provisions of the
Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Note shall be conclusive and
binding upon such Holder and upon all future Holders of any Note issued upon the
registration of transfer hereof or in exchange for or in lieu hereof, whether or
not notation of such consent or waiver is made upon this Note. Notwithstanding
the foregoing, no consent of Holders shall be required to advance the Stated
Maturity of the Notes as provided herein.

         No reference to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligation of the Company, which is absolute
and unconditional, to pay the principal of, premium, if any, and any interest
on, and any Additional Amounts in respect of, this Note at the times, places and
rate, and in the coin or currency, herein prescribed.

         The Notes are issuable only in fully registered form in denominations
of $1,000 and integral multiples in excess thereof. As provided in the Indenture
and subject to certain limitations therein set forth, this Note is exchangeable
for a like aggregate principal amount of Notes of this series and of like tenor
of any authorized denomination, as requested by the Holder surrendering the
same. As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note is registrable in the Security Register,
upon surrender of this Note for registration of transfer at the office or agency
of the Company in any place where the principal of, premium, if any, any
interest on, and any Additional Amounts in respect of, this Note are payable or
at such other offices or agencies as the Company may designate, duly endorsed
by, or accompanied by a written instrument of transfer in form satisfactory to,
the Company and the Security Registrar or any transfer agent duly executed by
the registered owner hereof or his attorney duly authorized in writing, and
thereupon one or more new Notes of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount and Stated Maturity
will be issued to the designated transferee or transferees.

         The Notes will not be subject to any sinking fund and, except as
provided in the Indenture or herein, will not be redeemable or repayable prior
to their Stated Maturity.

         The Notes are redeemable as a whole or in part, at the Company's option
at any time, at a Redemption Price equal to the greater of (i) 100 percent of
their principal amount or (ii) the sum of the present values of the remaining
scheduled payments of principal and interest thereon and discounted to the date
of redemption on a semiannual basis (assuming a 360-day year consisting of
twelve 30-day months) at the Treasury Yield plus 15 basis points, plus, in each
case, accrued interest to the date of redemption. The Company will, however, pay
the interest installment due on any Interest Payment Date that occurs on or
before a Redemption Date to the Holders as of the close of business on the
Regular Record Date immediately preceding that Interest Payment Date.

         "Treasury Yield" means, with respect to any Redemption Date, the rate
per annum equal to the semiannual equivalent yield to maturity of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as
a percentage of its principal amount) equal to the Comparable Treasury Price for
such Redemption Date.

         "Comparable Treasury Issue" means the United States Treasury security
selected by the Referenced Treasury Dealers or Dealer as having a maturity
comparable to the remaining term of the Notes 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 the Notes.

         "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 of such Reference Treasury Dealer
Quotations, or (ii) if the Trustee obtains fewer than four but more than one
such Reference Treasury Dealer Quotations, the average of all such Quotations,
or (iii) if the Trustee obtains only one such Referenced Treasury Dealer
Quotation, such quotation.

                                      -3-
<PAGE>
         "Reference Treasury Dealer Quotations" means with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as determined by
the Trustee, bid and asked prices for the Comparable Treasury Issue (expressed
in each case as a percentage of the principal amount) quoted in writing to the
Trustee by such Reference Treasury Dealer at 5:00 p.m. (New York City Time) on
the third Business Day preceding such Redemption Date.

         "Reference Treasury Dealer" means each of (i) Banc of America
Securities LLC and Deutsche Bank Securities Inc. (or their respective affiliates
that are Primary Treasury Dealers), and their respective successors; provided,
however, that if either of the foregoing ceases being a U.S. Government
securities dealer in New York City (a "Primary Treasury Dealer") the Company may
substitute another Primary Treasury Dealer, and (ii) any other Primary Treasury
Dealer(s) selected by the Trustee after consultation with the Company.

         If as a result of any change in or any amendment to the laws,
regulations or published tax rulings of the "applicable taxing jurisdiction" (as
hereinafter defined) affecting taxation, or any change in the official
administration, application or interpretation of such laws, regulations or
published tax rulings either generally or in relation to the Notes, which change
or amendment becomes effective on or after the original issue date of the Notes
or which change in official administration, application or interpretation shall
not have been available to the public prior to such issue date, it is determined
by the Company that (a) the Company would be required to pay any Additional
Amounts pursuant to the Indenture or the terms of the Notes in respect of
interest on the next succeeding Interest Payment Date and (b) such obligation
cannot be avoided by the Company or the Guarantor taking reasonable measures
available to it, the Company may, at its option, redeem all (but not less than
all) of the Notes upon not less than 30 nor more than 60 days' written notice as
provided in the Indenture, at a Redemption Price equal to 100% of the principal
amount thereof plus accrued interest to the date fixed for redemption; provided,
however, that (a) no such notice of redemption may be given earlier than 60 days
prior to the earliest date on which the Company would be obligated to pay such
Additional Amounts were a payment then due in respect of the Notes, and (b) at
the time any such redemption notice is given, such obligation to pay such
Additional Amounts must remain in effect. If (a) the Company shall have on any
date (the "Succession Date") consolidated with or merged into, or conveyed or
transferred or leased its properties and assets as an entirety or substantially
as an entirety to, any Successor which is organized under the laws of any
jurisdiction other than the United States of America, any State thereof or the
District of Columbia or the jurisdiction in which the Company is organized, (b)
as result of any change in or any amendment to the laws, regulations or
published tax rulings of such jurisdiction, or of any political subdivision or
taxing authority thereof or therein, affecting taxation, or any change in the
official administration, application or interpretation of such laws, regulations
or published tax rulings either generally or in relation to the Notes, which
change or amendment becomes effective on or after the Succession Date or which
change in official administration, application or interpretation shall not have
been available to the public prior to such Succession Date and is notified to
the Company, such Successor would be required to pay any Successor Additional
Amounts pursuant to the Indenture or the terms of the Notes in respect of
interest on any Notes on the next succeeding Interest Payment Date and (c) such
obligation cannot be avoided by the Company or such Successor taking reasonable
measures available to it, the Company or such Successor may at its option redeem
all (but not less than all) of the Notes, upon not less than 30 nor more than 60
days' written notice as provided in the Indenture, at a Redemption Price equal
to 100% of the principal amount thereof plus accrued interest to the date fixed
for redemption; provided however, that (a) no such notice of redemption may be
given earlier than 60 days prior to the earliest date on which a Successor would
be obligated to pay such Successor Additional Amounts were a payment then due in
respect of the Notes, and (b) at the time any such redemption notice is given,
such obligation to pay such Successor Additional Amounts must remain in effect.

         Holders of Notes to be redeemed will receive notice thereof by
first-class mail at least 30 and not more than 60 days prior to the Redemption
Date, as provided in the Indenture.

         Unless the Company defaults in payment of the redemption price, on and
after the Redemption Date interest will cease to accrue on the Notes or portions
thereof called for redemption.

         All payments of, or in respect of, principal of and premium, if any,
and interest on this Note shall be made without withholding or deduction for, or
on account of, any present or future taxes, duties, levies, assessments or
governmental charges of whatever nature imposed or levied by or on behalf of the
jurisdiction (or any political subdivision or taxing authority thereof or
therein) in which the Company is incorporated or resident (or deemed for

                                      -4-
<PAGE>
tax purposes to be resident) (the "applicable taxing jurisdiction"), unless such
taxes, duties, levies, assessments or governmental charges are required by the
applicable taxing jurisdiction or any such subdivision or authority to be
withheld or deducted. In that event, the Company will pay by way of additional
interest such additional amounts of, or in respect of, principal and premium, if
any, of and interest ("Additional Amounts") as will result (after deduction of
such taxes, duties, levies, assessments or governmental charges and any
additional taxes, duties, levies, assessments or governmental charges payable in
respect of such Additional Amounts) in the payment to the Holder of this Note of
the amounts which would have been payable in respect of this Note had no such
withholding or deduction been required, except that no Additional Amounts shall
be so payable for or on account of:

(a)      any tax, duty, levy, assessment or other governmental charge which
would not have been imposed but for the fact that such Holder:

         (i)      was a resident, domiciliary or national of, or engaged in
         business or maintained a permanent establishment or was physically
         present in, the applicable taxing jurisdiction or otherwise had some
         connection with the applicable taxing jurisdiction other than the mere
         ownership of this Note;

         (ii)     presented (if presentation is required) this Note for payment
         in the applicable taxing jurisdiction, unless this Note could not have
         been presented for payment elsewhere;

         (iii)    presented (if presentation is required) this Note, as the case
         may be, more than 30 days after the date on which the payment in
         respect of this Note first became due and payable or was provided for,
         whichever is later, except to the extent that the Holder would have
         been entitled to such Additional Amounts; if it had presented such Note
         for payment on any days within such period of 30 days;

         (iv)     is not dealing with the Company, directly or indirectly, on an
         arm's-length basis; or

         (v)      entered into or participated in a scheme to avoid Canadian
         withholding tax, being a scheme which the Company was neither a party
         to nor participated in;

(b)      any estate, inheritance, gift, sale, transfer, personal property or
similar tax, assessment or other governmental charge;

(c)      any tax, assessment or other governmental charge which is payable
otherwise than by withholding or deduction from payments of, or in respect of,
principal of, premium, if any, or interest on this Note;

(d)      any tax, assessment or other governmental charge that is imposed or
withheld by reason of the failure to comply by the Holder or the beneficial
owner of this Note with a request of the Company addressed to the Holder (i) to
provide information concerning the nationality, residence or identity of the
Holder or such beneficial owner or (ii) to make any declaration or other similar
claim or satisfy any information or reporting requirement, which, in the case of
(i) or (ii), is required or imposed by a statute, treaty, regulation or
administrative practice of the applicable taxing jurisdiction as a precondition
to exemption from all or part of such tax, assessment or other governmental
charge; or

(e)      any combination of items (a), (b), (c) and (d);

nor shall Additional Amounts be paid with respect to any payment of the
principal of or premium, if any, or interest on this Note to any Holder who is a
fiduciary or partnership or other than the sole beneficial owner of such payment
to the extent such payment would be required by the laws of the applicable
taxing jurisdiction to be included in the income for tax purposes of a
beneficiary or settlor with respect to such fiduciary or a member of such
partnership or a beneficial owner who would not have been entitled to such
Additional Amounts had it been the Holder of this Note.

         The payment of principal of, or premium, if any, or interest on, or in
respect of, this Note shall be deemed to include the payment of Additional
Amounts provided for in the Indenture or herein to the extent that, in such
context, Additional Amounts are, were or would be payable in respect thereof
pursuant to the Indenture or this Note.

                                      -5-
<PAGE>
         Subject to the terms and conditions of the Indenture, if any Change in
Control occurs prior to the Stated Maturity of the Notes, the Company shall, at
the option of the Holders thereof, purchase all Notes for which a Change in
Control Purchase Notice shall have been delivered as provided in the Indenture
and not withdrawn, by a date which shall be 35 Business Days after the
occurrence of such Change in Control, at a Change in Control Purchase Price
equal to 100% of the principal amount thereof plus accrued interest to the
Change in Control Purchase Date, which Change in Control Purchase Price shall be
paid in cash.

         Holders have the right to withdraw any Change in Control Purchase
Notice by delivering to the paying agent a written notice of withdrawal in
accordance with the provisions of the Indenture.

         If cash sufficient to pay the Change in Control Purchase Price of all
Notes or portions thereof to be purchased on the Change in Control Purchase Date
is deposited with the Trustee on the Change in Control Purchase Date, interest
shall cease to accrue on such Notes (or portions thereof) and on and after the
Change in Control Purchase Date the Holders thereof shall have no other rights
as such (other than the right to receive the Change in Control Purchase Price
upon surrender of such Notes).

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

         No service charge shall be made for any registration of transfer or
exchange of this Note, but, subject to certain limitations set forth in the
Indenture, the Company may require payment of a sum sufficient to cover any tax
or other governmental charge payable in connection therewith.

         The Indenture and this Note shall be governed by and construed in
accordance with the laws of the State of New York.

         This Note shall not be valid or become obligatory for any purpose until
the Trustee's Certificate of Authentication hereon shall have been executed by
the Trustee.

         IN WITNESS WHEREOF, APACHE FINANCE CANADA CORPORATION has caused this
instrument to be duly executed under its corporate seal.

                                        APACHE FINANCE CANADA CORPORATION

[SEAL]                                  By:
                                           -------------------------------------
                                           Name:
                                           Title:

Attest:

By:
   --------------------------------
    Name: Cheri L. Peper
    Title: Corporate Secretary

Date:

                                      -6-
<PAGE>
                                    GUARANTEE

         For value received, Apache Corporation, a corporation organized under
the laws of the State of Delaware (herein called the "Guarantor," which term
includes any successor corporation under the Indenture referred to in the
Security upon which this Guarantee is endorsed), hereby irrevocably and
unconditionally guarantees to the Holder of the Security upon which this
Guarantee is endorsed and to the Trustee on behalf of the Trustee and such
Holder the due and punctual payment of the principal of and premium, if any, and
interest on, and any Additional Amounts with respect to, such Security, and any
other amount due and payable pursuant to the terms of such Security or Indenture
or payments referred to therein, when and as the same shall become due and
payable, whether at the Stated Maturity, by declaration of acceleration, call
for redemption or repurchase or otherwise, according to the terms of such
Security and of the Indenture referred to therein. In case of the failure of
Apache Finance Canada Corporation, an unlimited liability company organized
under the laws of Nova Scotia, Canada (herein called the "Company," which term
includes any successor corporation under such Indenture), punctually to make any
such payment of principal or premium, if any, or interest on, or any Additional
Amounts with respect to such Security, the Guarantor hereby agrees to cause any
such payment to be made punctually when and as the same shall become due and
payable, whether at the Stated Maturity or by declaration of acceleration, call
for redemption or repurchase or otherwise, and as if such payment were made by
the Company.

         The Guarantor hereby agrees that its obligations hereunder shall be as
if it were principal debtor and not merely surety, and shall be absolute and
unconditional, irrespective of, and shall be unaffected by, any invalidity,
irregularity or unenforceability of such Security or such Indenture, any failure
to enforce the provisions of such Security or such Indenture, or any waiver,
modification or indulgence granted to the Company with respect thereto, by the
Holder of such Security or the Trustee or any other circumstance which may
otherwise constitute a legal or equitable discharge of a surety or guarantor.
The Guarantor hereby waives the benefits of division and discussion, diligence,
presentment, demand of payment, filing of claims with a court in the event of
merger, insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company, protest or notice with respect to such
Security or the indebtedness evidenced thereby and all demands whatsoever, and
covenants that this Guarantee will not be discharged except by strict and
complete performance of the obligations contained in such Security and this
Guarantee. The Guarantor hereby agrees that, in the event of a default in
payment of principal or premium, if any, or interest on, or any Additional
Amounts with respect to such Security, or default in any payment referred to
therein, legal proceedings may be instituted by the Trustee on behalf of, or by,
the Holder of such Security, on the terms and conditions set forth in such
Indenture, directly against the Guarantor to enforce this Guarantee without
first proceeding against the Company.

         The Guarantor shall be subrogated to all rights of the Holder of such
Security and the Trustee against the Company in respect of any amounts paid to
such Holder by the Guarantor on account of such Security pursuant to the
provisions of this Guarantee or such Indenture; provided, however, that the
Guarantor shall not be entitled to enforce, or to receive any payments arising
out of or based upon, such right of subrogation until the principal of, and
premium, if any, and interest on, and any Additional Amounts required with
respect to Securities issued under such Indenture shall have been paid in full.

         No reference herein to such Indenture and no provision of this
Guarantee or of such Indenture shall alter or impair the guarantee of the
Guarantor, which is absolute and unconditional, of the due and punctual payment
of principal of and premium, if any, and interest on and any Additional Amounts
with respect to the Security upon which this Guarantee is endorsed.

         This Guarantee shall not be valid or obligatory for any purpose until
the certificate of authentication of the Security upon which this Guarantee is
endorsed shall have been manually executed by or on behalf of the Trustee under
the Indenture.

         All terms used in this Guarantee which are defined in the Indenture
shall have the meanings assigned to them in such Indenture.

         This Guarantee shall be deemed to be a contract made under the laws of
the State of New York, and for all purposes shall be governed by and construed
in accordance with the laws of the State of New York.

                                      -7-
<PAGE>
         This Guarantee is an unsecured obligation of the Guarantor, and ranks
pari passu with all other unsubordinated indebtedness of the Guarantor.

         Reference is made to the Indenture, including Article Sixteen thereof,
for further provisions with respect to this Guarantee.

         IN WITNESS WHEREOF, the Guarantor has caused this Guarantee to be duly
executed under its corporate seal and dated the date of the Security upon which
this Guarantee is endorsed.

                                        APACHE CORPORATION

[SEAL]                                  By:
                                            ------------------------------------
                                            Name:
                                            Title:

Attest:

By:
   --------------------------------
     Name: Cheri L. Peper
     Title: Corporate Secretary

                                      -8-
<PAGE>
                                   ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

      Please insert Social Security or other identifying number of assignee

               (please print or type name and address of assignee)

the within Security and all rights thereunder and does hereby irrevocably
constitute and appoint the aforesaid assignee attorney to transfer the within
Security on the books kept for registration thereof, with full power of
substitution in the premises.

Dated:

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

                                        ----------------------------------------
                                        Signature

Signature Guarantee:

                                        ----------------------------------------
(Signature must be guaranteed)          Signature

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

NOTICE: The signature to this assignment must correspond with the name as it
appears upon the face of the within Security in every particular, without
alteration or enlargement or any change whatever. When assignment is made by a
guardian, trustee, executor or administrator, an officer of a corporation, or
anyone in a representative capacity, proof of his or her authority to act must
accompany the Security. The signature must be guaranteed by an Institution which
is a member of one of the following recognized signature Guarantee Programs: (i)
The Securities Transfer Agent Medallion Program (STAMP); (ii) The New York Stock
Exchange Medallion Program (MNSP); (iii) The Stock Exchange Medallion Program
(SEMP); or (iv) in such other guarantee program acceptable to the Trustee.

                                      -9-<PAGE>

                                                                  EXHIBIT 4.3.14

                          REGISTRATION RIGHTS AGREEMENT

         This Registration Rights Agreement (this "Agreement") is made and
entered into this 18th day of March, 2003 among CenterPoint Energy Houston
Electric, LLC, a Texas limited liability company (the "Company"), Salomon Smith
Barney Inc., Credit Suisse First Boston LLC and Deutsche Bank Securities Inc.,
as representatives (the "Representatives") of the initial purchasers (the
"Initial Purchasers") listed on Schedule I to the Purchase Agreement (defined
below).

         This Agreement is made pursuant to the Purchase Agreement dated March
13, 2003, among the Company and the Initial Purchasers (the "Purchase
Agreement"), which provides for the sale by the Company to the Initial
Purchasers of an aggregate of $450,000,000 principal amount of the Company's
5.70% General Mortgage Bonds, Series J, due 2013 and an aggregate of
$312,275,000 principal amount of the Company's 6.95% General Mortgage Bonds,
Series K, due 2033 (collectively, the "Securities"). In order to induce the
Initial Purchasers to enter into the Purchase Agreement, the Company has agreed
to provide to the Initial Purchasers and their direct and indirect transferees
the registration rights set forth in this Agreement. The execution and delivery
of this Agreement is a condition to the closing under the Purchase Agreement.

         In consideration of the foregoing, the parties hereto agree as follows:

         1.       Definitions. As used in this Agreement, the following
capitalized defined terms shall have the following meanings:

                  "1933 Act" shall mean the Securities Act of 1933, as amended
from time to time.

                  "1934 Act" shall mean the Securities Exchange Act of 1934, as
amended from time to time.

                  "Business Day" shall mean each Monday, Tuesday, Wednesday,
Thursday and Friday which is not a day on which banking institutions in The City
of New York are authorized or obligated by law or executive order to close.

                  "Company" shall have the meaning set forth in the preamble and
shall also include the Company's successors.

                  "Depositary" shall mean The Depository Trust Company, or any
other depositary for the Securities appointed by the Company; provided, however,
that such depositary must have an address in the Borough of Manhattan, in the
City of New York.

                  "Exchange Offer" shall mean the exchange offer by the Company
of Exchange Securities for Registrable Securities pursuant to Section 2.1
hereof.

                  "Exchange Offer Registration Statement" shall mean an exchange
offer registration statement on Form S-4 (or, if applicable, on another
appropriate form), and all amendments and supplements to such registration
statement, including the Prospectus contained therein, all exhibits thereto and
all documents incorporated by reference therein.

<PAGE>

                  "Exchange Period" shall have the meaning set forth in Section
2.1 hereof.

                  "Exchange Securities" shall mean the general mortgage bonds
issued by the Company under the Indenture containing terms identical to the
Securities in all material respects (except for references to certain interest
rate provisions, restrictions on transfers and restrictive legends), to be
offered to Holders of Securities in exchange for Registrable Securities pursuant
to the Exchange Offer.

                  "Expiration Date" shall mean the date on which all the
Participating Broker-Dealers have sold all Exchange Securities held by them.

                  "Holder" shall mean an Initial Purchaser, for so long as it
owns any Registrable Securities, and each of its successors, assigns and direct
and indirect transferees who become owners of Registrable Securities under the
Indenture and each Participating Broker-Dealer that holds Exchange Securities
for so long as such Participating Broker-Dealer is required to deliver a
prospectus meeting the requirements of the 1933 Act in connection with any
resale of such Exchange Securities.

                  "Indenture" shall mean the General Mortgage Indenture, dated
as of October 10, 2002, between the Company and JPMorgan Chase Bank, as trustee,
as the same may be amended, supplemented, waived or otherwise modified from time
to time in accordance with the terms thereof.

                  "Initial Purchaser" or "Initial Purchasers" shall have the
meaning set forth in the preamble.

                  "Majority Holders" shall mean the Holders of a majority of the
aggregate principal amount of Outstanding (as defined in the Indenture)
Registrable Securities or such smaller amount of Registrable Securities for
which action is to be taken; provided that whenever the consent or approval of
Holders of a specified percentage of Registrable Securities is required
hereunder, Registrable Securities held by the Company and other obligors on the
Securities or any Affiliate (as defined in the Indenture) of the Company shall
be disregarded in determining whether such consent or approval was given by the
Holders of such required percentage amount.

                  "Participating Broker-Dealer" shall mean any Initial
Purchaser, and any other broker-dealer who acquired the Registrable Securities
for its own account as a result of market-making or other trading activities and
exchanges Registrable Securities in the Exchange Offer for Exchange Securities.

                  "Person" shall mean any individual, corporation, partnership,
joint venture, trust, limited liability company, unincorporated organization or
government or any agency or political subdivision thereof.

                  "Prospectus" shall mean the prospectus included in a
Registration Statement, including any preliminary prospectus, and any such
prospectus as amended or supplemented by any prospectus supplement, including
any such prospectus supplement with respect to the terms of the offering of any
portion of the Registrable Securities covered by a Shelf Registration

                                       2

<PAGE>

Statement, and by all other amendments and supplements to a prospectus,
including post-effective amendments, and in each case including all material
incorporated by reference therein.

                  "Purchase Agreement" shall have the meaning set forth in the
preamble.

                  "Registrable Securities" shall mean the Securities; provided,
however, that Securities shall cease to be Registrable Securities when (i) a
Registration Statement with respect to such Securities shall have been declared
effective under the 1933 Act and such Securities shall have been disposed of
pursuant to such Registration Statement, (ii) such Securities have been sold to
the public pursuant to Rule 144 under the 1933 Act or may be sold pursuant to
Rule 144(k) (or any similar provision then in force, but not Rule 144A) under
the 1933 Act, (iii) such Securities shall have ceased to be outstanding or (iv)
the Exchange Offer is consummated (except in the case of Securities purchased
from the Company and continued to be held by the Initial Purchasers).

                  "Registration Expenses" shall mean any and all expenses
incident to performance of or compliance by the Company with this Agreement,
including, without limitation: (i) all SEC, stock exchange or National
Association of Securities Dealers, Inc. ("NASD") registration and filing fees,
including, if applicable, the reasonable fees and expenses of any "qualified
independent underwriter" (and its counsel) that is required to be retained by
any holder of Registrable Securities in accordance with the rules and
regulations of the NASD, (ii) all fees and expenses incurred in connection with
compliance with state securities or blue sky laws and compliance with the rules
of the NASD (including reasonable fees and disbursements of counsel for any
underwriters or Holders in connection with blue sky qualification of any of the
Exchange Securities or Registrable Securities and any filings with the NASD),
(iii) all expenses of any Persons in preparing or assisting in preparing, word
processing, printing and distributing any Registration Statement, any
Prospectus, any amendments or supplements thereto, any underwriting agreements,
securities sales agreements and other documents relating to the performance of
and compliance with this Agreement, (iv) all fees and expenses incurred in
connection with the listing, if any, of any of the Registrable Securities on any
securities exchange or exchanges, (v) all rating agency fees, (vi) the fees and
disbursements of counsel for the Company and of the independent public
accountants of the Company, including the expenses of any special audits or
"cold comfort" letters required by or incident to such performance and
compliance, (vii) the fees and expenses of the Trustee, and any escrow agent or
custodian, (viii) the reasonable fees and disbursements of one firm, at any one
time, of legal counsel selected by the Representatives or the Majority Holders
to represent the Holders of Registrable Securities and (ix) any reasonable fees
and disbursements of the underwriters customarily required to be paid by issuers
or sellers of securities and the fees and expenses of any special experts
retained by the Company in connection with any Registration Statement, but
excluding underwriting discounts and commissions and transfer taxes, if any,
relating to the sale or disposition of Registrable Securities by a Holder.

                  "Registration Statement" shall mean any registration statement
of the Company which covers any of the Exchange Securities or Registrable
Securities pursuant to the provisions of this Agreement, and all amendments and
supplements to any such Registration Statement, including post-effective
amendments, in each case including the Prospectus contained therein, all
exhibits thereto and all material incorporated by reference therein.

                                       3

<PAGE>

                  "SEC" shall mean the United States Securities and Exchange
Commission or any successor agency or governmental body performing the functions
currently performed by the United States Securities and Exchange Commission.

                  "Securities" shall have the meaning set forth in the preamble.

                  "Shelf Registration" shall mean a registration effected
pursuant to Section 2.2 hereof.

                  "Shelf Registration Statement" shall mean a "shelf"
registration statement of the Company pursuant to the provisions of Section 2.2
of this Agreement which covers all of the Registrable Securities on an
appropriate form under Rule 415 under the 1933 Act, or any similar rule that may
be adopted by the SEC, and all amendments and supplements to such registration
statement, including post-effective amendments, in each case including the
Prospectus contained therein, all exhibits thereto and all material incorporated
by reference therein.

                  "TIA" shall mean the Trust Indenture Act of 1939, as amended.

                  "Trustee" shall mean the trustee with respect to the
Securities under the Indenture.

         2.       Registration Under the 1933 Act.

                  2.1 Exchange Offer. The Company shall, for the benefit of the
Holders, at the Company's cost, use its reasonable commercial efforts (A) to
file with the SEC the Exchange Offer Registration Statement not later than 180
days following the original issuance of the Securities with respect to a
proposed Exchange Offer and the issuance and delivery to the Holders, in
exchange for the Registrable Securities, of a like principal amount of Exchange
Securities, (B) to cause the Exchange Offer Registration Statement to be
declared effective under the 1933 Act within 270 days of the original issuance
of the Securities, (C) to keep the Exchange Offer Registration Statement
effective until the closing of the Exchange Offer and (D) unless the Exchange
Offer would not be permitted by applicable law or SEC policy, to cause the
Exchange Offer to be consummated within 315 days following the original issuance
of the Securities. The Exchange Securities will be issued under the Indenture.
Upon the effectiveness of the Exchange Offer Registration Statement, the Company
shall promptly commence the Exchange Offer, it being the objective of such
Exchange Offer to enable each Holder eligible and electing to exchange
Registrable Securities for Exchange Securities (assuming that such Holder (A) is
not an affiliate of the Company within the meaning of Rule 405 under the 1933
Act (an "Affiliate"), (B) is not a broker-dealer tendering Registrable
Securities acquired directly from the Company or one of its Affiliates for its
own account, (C) acquired the Exchange Securities in the ordinary course of such
Holder's business and (D) at the time of the consummation of the Exchange Offer
has no arrangements or understandings with any Person to participate in the
Exchange Offer for the purpose of distributing the Exchange Securities) to
transfer such Exchange Securities from and after their receipt without any
limitations or restrictions under the 1933 Act and without material restrictions
under the securities laws of a substantial portion of the several states of the
United States.

         In connection with the Exchange Offer, the Company will:

                                       4

<PAGE>

                  (A) as promptly as practicable after the Exchange Offer
         Registration Statement has been declared effective by the SEC, mail to
         each Holder a copy of the Prospectus forming part of the Exchange Offer
         Registration Statement, together with an appropriate letter of
         transmittal and related documents;

                  (B) keep the Exchange Offer open for acceptance for a period
         of not less than 20 Business Days after the date notice thereof is
         mailed to the Holders (or longer if required by applicable law) (such
         period referred to herein as the "Exchange Period");

                  (C) utilize the services of the Depositary for the Exchange
         Offer;

                  (D) notify each Holder that any Holder electing to have a
         Registrable Security exchanged pursuant to the Exchange Offer will be
         required to surrender such Registrable Security, together with the
         appropriate letters of transmittal, to the institution and at the
         address and in the manner specified in the notice prior to 5:00 p.m.
         (Eastern Time) on the last Business Day of the Exchange Period;

                  (E) permit Holders to (i) withdraw tendered Registrable
         Securities at any time prior to 5:00 p.m. (Eastern Time) on the last
         business day of the Exchange Period, by sending to the institution
         specified in the notice a telegram, telex, facsimile transmission or
         letter setting forth the name of such Holder, the principal amount of
         Registrable Securities delivered for exchange and a statement that such
         Holder is withdrawing such Holder's election to have such Securities
         exchanged and (ii) tender Registrable Securities according to customary
         guaranteed delivery procedures if such Holder cannot deliver such
         Registrable Securities or complete the procedures relating thereto on a
         timely basis prior to 5:00 p.m. (Eastern Time) on the last business day
         of the Exchange Period;

                  (F) notify each Holder that any Registrable Security not
         tendered will remain outstanding and continue to accrue interest, but
         will not retain any rights under this Agreement (except in the case of
         the Initial Purchasers and Participating Broker Dealers as provided
         herein); and

                  (G) otherwise comply in all material respects with all
         applicable laws relating to the Exchange Offer.

         As soon as practicable after the close of the Exchange Offer the
         Company shall:

                  (A)      accept for exchange all Registrable Securities duly
         tendered and not validly withdrawn pursuant to the Exchange Offer in
         accordance with the terms of the Exchange Offer Registration Statement
         and the letter of transmittal which shall be an exhibit thereto;

                  (B)      deliver or cause to be delivered all Registrable
         Securities accepted for exchange to the Trustee for cancellation; and

                  (C)      cause the Trustee promptly to authenticate and
         deliver Exchange Securities, to each Holder of Registrable Securities
         so accepted for exchange in a

                                       5

<PAGE>

         principal amount equal to the principal amount of the Registrable
         Securities of such Holder so accepted for exchange.

         Interest on each Exchange Security will accrue from the last date on
which interest was paid on the Registrable Securities surrendered in exchange
therefor or, if no interest has been paid on the Registrable Securities, from
the date of original issuance. The Exchange Offer shall not be subject to any
conditions, other than (A) that the Exchange Offer, or the making of any
exchange by a Holder, does not violate applicable law or any applicable
interpretation of the staff of the SEC, (B) the valid tendering of Registrable
Securities in accordance with the Exchange Offer, (C) that each Holder of
Registrable Securities exchanged in the Exchange Offer shall have represented
that (i) it is not an affiliate of the Company within the meaning of Rule 405
under the 1933 Act, (ii) it is not a broker-dealer tendering Registrable
Securities acquired directly from the Company or one of its Affiliates for its
own account, (iii) all of the Exchange Securities to be received by it shall be
acquired in the ordinary course of its business and (iv) at the time of the
consummation of the Exchange Offer it shall have no arrangement or understanding
with any Person to participate in the distribution (within the meaning of the
1933 Act) of the Exchange Securities, and shall have made such other
representations as may be reasonably necessary under applicable SEC rules,
regulations or interpretations to render the use of Form S-4 or other
appropriate form under the 1933 Act available and (D) that no action or
proceeding shall have been instituted or threatened in any court or by or before
any governmental agency with respect to the Exchange Offer which, in the
Company's judgment, would reasonably be expected to impair the ability of the
Company to proceed with the Exchange Offer. The Company shall use its reasonable
commercial efforts to inform the Initial Purchasers of the names and addresses
of the Holders to whom the Exchange Offer is made, and the Initial Purchasers
shall have the right, subject to applicable securities laws, to contact such
Holders and otherwise facilitate the tender of Registrable Securities in the
Exchange Offer.

         The Company shall use its reasonable commercial efforts to keep the
Exchange Offer Registration Statement effective and to amend and supplement the
Prospectus contained therein, in order to permit such Prospectus to be lawfully
delivered by all persons subject to the prospectus delivery requirements of the
1933 Act for such period of time as such persons must comply with such
requirements in order to resell the Exchange Securities; provided, however, that
(i) in the case where such prospectus and any amendment or supplement thereto
must be delivered by a Participating Broker-Dealer, such period shall terminate
at the earlier to occur of (i) the expiration of 180 days following the Exchange
Offer and (ii) the Expiration Date.

         The Company shall not be obligated to keep the Exchange Offer
Registration Statement effective or to permit the use of any Prospectus forming
a part of the Exchange Offer Registration Statement if (i) the Company
determines, in its reasonable judgment, upon advice of counsel that the
continued effectiveness and use of the Exchange Offer Registration Statement
would (x) require the disclosure of material information which the Company has a
bona fide business reason for preserving as confidential or (y) interfere with
any financing, acquisition, corporate reorganization or other material
transaction involving the Company or any of its subsidiaries; and provided,
further, that the failure to keep the Exchange Offer Registration Statement
effective and usable for offers and sales of Registrable Securities for such
reasons shall last no longer than 45 consecutive calendar days or no more than
an aggregate of 90 calendar days during any consecutive twelve-month period
(whereafter a Registration Default, as

                                       6

<PAGE>

hereinafter defined, shall occur) and (ii) the Company promptly thereafter
complies with the requirements of Section 3(L) hereof, if applicable; any such
period during which the Company is excused from keeping the Exchange Offer
Registration Statement effective and usable for offers and sales of Registrable
Securities is referred to herein as a "Exchange Offer Suspension Period"; an
Exchange Offer Suspension Period shall commence on and include the date that the
Company gives notice to the Holders that the Exchange Offer Registration
Statement is no longer effective or the Prospectus included therein is no longer
usable for offers and sales of Registrable Securities as a result of the
application of the proviso of the foregoing sentence, stating the reason
therefor, and shall end on the earlier to occur of the date on which each seller
of Registrable Securities covered by the Exchange Offer Registration Statement
either receives the copies of the supplemented or amended Prospectus or is
advised in writing by the Company that use of the Prospectus may be resumed.

         The Company acknowledges that pursuant to current interpretations by
the SEC's staff of Section 5 of the 1933 Act, in the absence of applicable
exemption therefrom, (i) each Holder which is a broker-dealer electing to
exchange Securities for Exchange Securities (an "Exchanging Dealer"), is
required to deliver a prospectus containing information substantially in the
form set forth in (a) Annex A hereto, (b) Annex B hereto in the "Exchange Offer
Procedures" section and the "Purpose of the Exchange Offer" section, (c) Annex C
hereto in the "Plan of Distribution" section of such prospectus in connection
with a sale of any such Exchange Securities received by such Exchanging Dealer
pursuant to the Exchange Offer and to include in the Letter of Transmittal
delivered pursuant to the Exchange Offer, the information set forth in Annex D
hereto and (ii) an Initial Purchaser that elects to sell Exchange Securities
acquired in an exchange for Securities constituting any portion of an unsold
allotment, is required to deliver a prospectus containing the information
required by Item 507 or Item 508 of Regulation S-K under the 1933 Act, as
applicable, in connection with such sale.

         2.2 Shelf Registration. In the event that (A) the Company reasonably
determines that changes in law, SEC rules or regulations or applicable
interpretations thereof by the staff of the SEC do not permit the Company to
effect the Exchange Offer as contemplated by Section 2.1 hereof, (B) for any
other reason, the Exchange Offer is not consummated within 315 days after the
original issuance of the Securities or (C) an Initial Purchaser notifies the
Company within 20 Business Days following the consummation of the Exchange Offer
that (i) it is not permitted by applicable law, SEC rules or regulations or
applicable interpretations thereof by the staff of the SEC to participate in the
Exchange Offer, (ii) it may not resell Exchange Securities with the Prospectus
included as part of the Exchange Offer Registration Statement or (iii) it is a
broker-dealer and owns Registrable Securities acquired directly from the Company
or one of the Company's Affiliates, then in case of each of clauses (A) through
(C) the Company shall, at its cost, in lieu of effecting (or, in the case of
clause (C), in addition to effecting) the registration of the Exchange
Securities pursuant to the Exchange Offer Registration Statement:

                  (A) as promptly as practicable, file with the SEC, and
         thereafter shall use its reasonable commercial efforts to cause to be
         declared effective no later than 345 days after the original issuance
         of the Securities, a Shelf Registration Statement relating to the offer
         and sale of the Registrable Securities by the Holders from time to time
         in accordance with the methods of distribution elected by the Majority
         Holders participating in the Shelf Registration and set forth in such
         Shelf Registration Statement;

                                       7

<PAGE>

                  (B) use its reasonable commercial efforts to keep the Shelf
         Registration Statement continuously effective in order to permit the
         Prospectus forming a part thereof to be usable by Holders for a period
         of two years from the date of the original issuance of the Securities
         (plus the number of days in any Suspension Period), or until all of the
         Registrable Securities have been sold pursuant thereto; provided,
         however, that the Company shall not be obligated to keep the Shelf
         Registration Statement effective or to permit the use of any Prospectus
         forming a part of the Shelf Registration Statement if (i) the Company
         determines, in its reasonable judgment, upon advice of counsel that the
         continued effectiveness and use of the Shelf Registration Statement
         would (x) require the disclosure of material information which the
         Company has a bona fide business reason for preserving as confidential
         or (y) interfere with any financing, acquisition, corporate
         reorganization or other material transaction involving the Company or
         any of its subsidiaries; and provided, further, that the failure to
         keep the Shelf Registration Statement effective and usable for offers
         and sales of Registrable Securities for such reasons shall last no
         longer than 45 consecutive calendar days or no more than an aggregate
         of 90 calendar days during any consecutive twelve-month period
         (whereafter a Registration Default, as hereinafter defined, shall
         occur) and (ii) the Company promptly thereafter complies with the
         requirements of Section 3(L) hereof, if applicable; any such period
         during which the Company is excused from keeping the Shelf Registration
         Statement effective and usable for offers and sales of Registrable
         Securities is referred to herein as a "Suspension Period"; a Suspension
         Period shall commence on and include the date that the Company gives
         notice to the Holders that the Shelf Registration Statement is no
         longer effective or the Prospectus included therein is no longer usable
         for offers and sales of Registrable Securities as a result of the
         application of the proviso of the foregoing sentence, stating the
         reason therefor, and shall end on the earlier to occur of the date on
         which each seller of Registrable Securities covered by the Shelf
         Registration Statement either receives the copies of the supplemented
         or amended Prospectus or is advised in writing by the Company that use
         of the Prospectus may be resumed.

         The Company shall not permit any securities other than Registrable
Securities to be included in the Shelf Registration Statement. The Company
further agrees, if necessary, to supplement or amend the Shelf Registration
Statement, as required by Section 3(B) below, and to furnish to the Holders of
Registrable Securities copies of any such supplement or amendment promptly after
its being used or filed with the SEC.

                  2.3 Expenses. The Company shall pay all Registration Expenses
in connection with the registration  pursuant to Section 2.1 or 2.2 hereof. Each
Holder shall pay all underwriting  discounts and commissions and transfer taxes,
if any,  relating  to the  sale or  disposition  of  such  Holder's  Registrable
Securities pursuant to the Shelf Registration Statement.

                  2.4 Effectiveness.

                  (A) The Company will be deemed not to have used its reasonable
         commercial efforts to cause the Exchange Offer Registration Statement
         or the Shelf Registration Statement, as the case may be, to become, or
         to remain, effective during the requisite period if the Company
         voluntarily takes any action that would, or omits to take any action
         (other than any action specifically permitted by the last paragraph of
         Section 2.1 or by

                                       8

<PAGE>

         Section 2.2(B) hereof) which omission would, result in any such
         Registration Statement not being declared effective or in the Holders
         of Registrable Securities covered thereby not being able to exchange or
         offer and sell such Registrable Securities during that period as and to
         the extent contemplated hereby, unless such action is required by
         applicable law.

                  (B) An Exchange Offer Registration Statement pursuant to
         Section 2.1 hereof or a Shelf Registration Statement pursuant to
         Section 2.2 hereof will not be deemed to have become effective unless
         it has been declared effective by the SEC; provided, however, that if,
         after it has been declared effective, the offering of Registrable
         Securities pursuant to an Exchange Offer Registration Statement or a
         Shelf Registration Statement is interfered with by any stop order,
         injunction or other order or requirement of the SEC or any other
         governmental agency or court, such Registration Statement will be
         deemed not to have become effective during the period of such
         interference, until the offering of Registrable Securities pursuant to
         such Registration Statement may legally resume.

                  2.5 Interest. In the event that (A) the Exchange Offer
Registration Statement is not filed with the SEC on or prior to the 180th day
following the date of original issuance of the Securities, (B) the Exchange
Offer Registration Statement is not declared effective on or prior to the 270th
calendar day following the date of original issuance of the Securities, (C) the
Exchange Offer is not consummated or a Shelf Registration Statement is not
declared effective, in either case, on or prior to the 315th calendar day
following the date of original issuance of the Securities or (D) the Exchange
Offer Registration Statement or the Shelf Registration Statement is filed and
declared effective but shall thereafter either be withdrawn by the Company or
becomes subject to an effective stop order suspending the effectiveness of such
registration statement, except as specifically permitted by the last paragraph
of Section 2.1 or Section 2.2(B) hereof, in each case without being succeeded
within 30 days by an amendment thereto or an additional registration statement
filed and declared effective (each such event referred to in clauses (A) through
(D) above, a "Registration Default"), the interest rate borne by the Registrable
Securities shall be increased ("Additional Interest") by one-fourth of one
percent (0.25%) per annum upon the occurrence of each Registration Default,
which rate will increase by an additional one-fourth of one percent (0.25%) per
annum if such Registration Default has not been cured within 90 days after
occurrence thereof and continuing until all Registration Defaults have been
cured, provided that the aggregate amount of any such increase in the interest
rate on the Registrable Securities shall in no event exceed one-half of one
percent (0.50%) per annum; and provided, further, that if the Exchange Offer
Registration Statement is not declared effective on or prior to the 270th
calendar day following the original issuance of the Securities and the Company
shall request Holders of Securities to provide information required by the
applicable rules of the SEC for inclusion in the Shelf Registration Statement,
then Registrable Securities owned by Holders who do not deliver such information
to the Company or who do not provide comments on the Shelf Registration
Statement when reasonably requested by the Company will not be entitled to any
such increase in the interest rate for any day after the 315th day following the
date of original issuance of the Securities. All accrued Additional Interest
shall be paid to Holders of Registrable Securities in the same manner and at the
same time as regular payments of interest on the Registrable Securities.
Following the cure of all Registration Defaults, the accrual of Additional
Interest will cease and the interest rate on the Registrable Securities will
revert to the original rate.

                                       9

<PAGE>

         3.       Registration Procedures. In connection with the obligations of
the Company with respect to Registration Statements pursuant to Sections 2.1 and
2.2 hereof, the Company shall:

                  (A) prepare and file with the SEC a Registration Statement,
         within the relevant time period specified in Section 2, on the
         appropriate form under the 1933 Act, which form shall (i) be selected
         by the Company, (ii) in the case of a Shelf Registration, be available
         for the sale of the Registrable Securities by the selling Holders
         thereof and (iii) comply as to form in all material respects with the
         requirements of the applicable form and include or incorporate by
         reference all financial statements required by the SEC to be filed
         therewith or incorporated by reference therein, and use its reasonable
         commercial efforts to cause such Registration Statement to become
         effective and remain effective in accordance with Section 2 hereof;

                  (B) use reasonable commercial efforts to cause (i) any
         Registration Statement and any amendment thereto, when it becomes
         effective, not to contain an untrue statement of a material fact or
         omit to state a material fact required to be stated therein or
         necessary to make the statements therein not misleading and (ii)
         subject to the last paragraph of Section 2.1 and Section 2.2(B), any
         Prospectus forming part of any Registration Statement, and any
         supplement to such Prospectus (as amended or supplemented from time to
         time), not to include an untrue statement of a material fact or omit to
         state a material fact required to be stated therein or necessary in
         order to make the statements therein, in the light of the circumstances
         under which they were made, not misleading;

                  (C) prepare and file with the SEC such amendments and
         post-effective amendments to each Registration Statement as may be
         necessary under applicable law to keep such Registration Statement
         effective for the applicable period; and cause each Prospectus to be
         supplemented by any required prospectus supplement, and as so
         supplemented to be filed pursuant to Rule 424 (or any similar provision
         then in force) under the 1933 Act and comply with the provisions of the
         1933 Act, the 1934 Act and the rules and regulations thereunder
         applicable to them with respect to the disposition of all securities
         covered by each Registration Statement during the applicable period in
         accordance with the intended method or methods of distribution
         reasonably requested by the selling Holders thereof (including sales by
         any Participating Broker-Dealer);

                  (D) in the case of a Shelf Registration, (i) notify each
         Holder of Registrable Securities, at least fifteen (15) calendar days
         prior to filing, that a Shelf Registration Statement with respect to
         the Registrable Securities is being filed and advising such Holders
         that the distribution of Registrable Securities will be made in
         accordance with the methods reasonably requested by the Majority
         Holders participating in the Shelf Registration, (ii) furnish to each
         Holder of Registrable Securities and to each underwriter of an
         underwritten offering of Registrable Securities, if any, without
         charge, as many copies of each Prospectus, including each preliminary
         Prospectus, and any amendment or supplement thereto, and such other
         documents as such Holder or underwriter may reasonably request,
         including financial statements and schedules and, if the Holder so
         requests, all exhibits in order to facilitate the public sale or other
         disposition of the Registrable Securities and (iii) hereby consent to
         the use of the Prospectus or any amendment or supplement thereto by
         each of the selling Holders of Registrable Securities

                                       10

<PAGE>

         in connection with the offering and sale of the Registrable Securities
         covered by the Prospectus or any amendment or supplement thereto, save
         and except during any Suspension Period;

                  (E) use its reasonable commercial efforts to register or
         qualify the Registrable Securities under such state securities or blue
         sky laws of such jurisdictions as any Holder of Registrable Securities
         covered by a Registration Statement and each underwriter of an
         underwritten offering of Registrable Securities shall reasonably
         request by the time the applicable Registration Statement is declared
         effective by the SEC, and do any and all other acts and things which
         may be reasonably necessary or advisable to enable each such Holder and
         underwriter to consummate the disposition in each such jurisdiction of
         such Registrable Securities owned by such Holder; provided, however,
         that the Company shall not be required to (i) qualify as a foreign
         corporation or as a dealer in securities in any jurisdiction where it
         would not otherwise be required to qualify but for this Section 3(E) or
         (ii) take any action which would subject it to general service of
         process or taxation in any such jurisdiction where it is not then so
         subject;

                  (F) notify promptly each Holder of Registrable Securities
         under a Shelf Registration or any Participating Broker-Dealer who has
         notified the Company that it is utilizing the Prospectus contained in
         the Exchange Offer Registration Statement as provided in Section 3(G)
         hereof and, if requested by such Holder or Participating Broker-Dealer,
         confirm such advice in writing promptly (i) when a Registration
         Statement has become effective and when any post-effective amendments
         and supplements thereto become effective, (ii) of any request by the
         SEC or any state securities authority for post-effective amendments and
         supplements to a Registration Statement and Prospectus or for
         additional information after the Registration Statement has become
         effective, (iii) of the issuance by the SEC or any state securities
         authority of any stop order suspending the effectiveness of a
         Registration Statement or the initiation of any proceedings for that
         purpose, (iv) in the case of a Shelf Registration, if, between the
         effective date of the Shelf Registration Statement and the closing of
         any sale of Registrable Securities covered thereby, the representations
         and warranties of the Company contained in any underwriting agreement,
         securities sales agreement or other similar agreement, if any, relating
         to the offering cease to be true and correct in all material respects,
         (v) of the happening of any event or the discovery of any facts during
         the period the Shelf Registration Statement is effective which makes
         any statement made in such Registration Statement or the related
         Prospectus untrue in any material respect or which requires the making
         of any changes in such Registration Statement or Prospectus in order to
         make the statements therein not misleading, (vi) of the receipt by the
         Company of any notification with respect to the suspension of the
         qualification of the Registrable Securities or the Exchange Securities,
         as the case may be, for sale in any jurisdiction or the initiation or
         threatening of any proceeding for such purpose and (vii) of any
         determination by the Company that a post-effective amendment to a
         Registration Statement would be appropriate;

                  (G) (1) in the case of the Exchange Offer Registration
         Statement (a) include in the Exchange Offer Registration Statement a
         section entitled "Plan of Distribution," which section shall be
         reasonably acceptable to the Representatives on behalf of the

                                       11

<PAGE>

         Participating Broker-Dealers, and which shall contain a summary
         statement of the positions taken or policies made by the staff of the
         SEC with respect to the potential "underwriter" status of any
         broker-dealer that holds Registrable Securities acquired for its own
         account as a result of market-making activities or other trading
         activities and that will be the beneficial owner (as defined in Rule
         13d-3 under the 1934 Act) of Exchange Securities to be received by such
         broker-dealer in the Exchange Offer, including a statement that any
         such broker-dealer who receives Exchange Securities for Registrable
         Securities pursuant to the Exchange Offer may be deemed a statutory
         underwriter and must deliver a prospectus meeting the requirements of
         the 1933 Act in connection with any resale of such Exchange Securities,
         (b) furnish to each Participating Broker-Dealer who has delivered to
         the Company the notice referred to in Section 3(F), without charge, as
         many copies of each Prospectus included in the Exchange Offer
         Registration Statement, including any preliminary prospectus, and any
         amendment or supplement thereto, as such Participating Broker-Dealer
         may reasonably request, (c) hereby consent to the use of the Prospectus
         forming part of the Exchange Offer Registration Statement or any
         amendment or supplement thereto, by any Person subject to the
         prospectus delivery requirements of the SEC, including all
         Participating Broker-Dealers, in connection with the sale or transfer
         of the Exchange Securities covered by the Prospectus or any amendment
         or supplement thereto for up to 180 days following the Exchange Offer
         except during any Exchange Offer Suspension Period, and (d) include in
         the transmittal letter or similar documentation to be executed by an
         exchange offeree in order to participate in the Exchange Offer (i) the
         following provision:

                  "If the exchange offeree is a broker-dealer holding
                  Registrable Securities acquired for its own account as a
                  result of market-making activities or other trading
                  activities, it will deliver a prospectus meeting the
                  requirements of the 1933 Act in connection with any resale of
                  Exchange Securities received in respect of such Registrable
                  Securities pursuant to the Exchange Offer,"

         and (ii) a statement to the effect that a broker-dealer by making the
         acknowledgment described in clause (i) and by delivering a Prospectus
         in connection with the exchange of Registrable Securities, the
         broker-dealer will not be deemed to admit that it is an underwriter
         within the meaning of the 1933 Act; and (2) in the case of any Exchange
         Offer Registration Statement, the Company agrees to deliver to any
         Participating Broker-Dealers upon the effectiveness of the Exchange
         Offer Registration Statement (a) an opinion of counsel or opinions of
         counsel substantially in the form attached hereto as Annex E, (b)
         officers' certificates substantially in the form customarily delivered
         by the Company in its public offerings of debt securities and (c) a
         comfort letter or comfort letters in customary form to the extent
         permitted by Statement on Auditing Standards No. 72 of the American
         Institute of Certified Public Accountants (or if such a comfort letter
         is not permitted, an agreed upon procedures letter in customary form)
         from the Company's independent certified public accountants (and, if
         necessary, any other independent certified public accountants of any
         subsidiary of the Company or of any business acquired by the Company
         for which financial statements are, or are required to be, included in
         the Registration Statement) at least as broad in scope and coverage as
         the

                                       12

<PAGE>

         comfort letter or comfort letters delivered to the Initial Purchasers
         in connection with the initial sale of the Securities to the Initial
         Purchasers;

                  (H) (i) in the case of an Exchange Offer, furnish counsel for
         the Initial Purchasers and (ii) in the case of a Shelf Registration,
         furnish counsel for the Holders of Registrable Securities, copies of
         any comment letters received from the SEC or any other request by the
         SEC or any state securities authority for amendments or supplements to
         a Registration Statement and Prospectus or for additional information;

                  (I) make every reasonable effort to obtain the withdrawal of
         any order suspending the effectiveness of a Registration Statement as
         soon as practicable and provide prompt notice to legal counsel for the
         Holders of the withdrawal of any such order;

                  (J) in the case of a Shelf Registration, furnish to each
         Holder of Registrable Securities, and each underwriter, if any, without
         charge, at least one conformed copy of each Registration Statement and
         any post-effective amendment thereto, including financial statements
         and schedules (without documents incorporated therein by reference and
         all exhibits thereto, unless requested);

                  (K) in the case of a Shelf Registration, cooperate with the
         selling Holders of Registrable Securities to facilitate the timely
         preparation and delivery of certificates representing Registrable
         Securities to be sold to the extent not held with the Depositary
         through Cede & Co., to remove any restrictive legends, and enable such
         Registrable Securities to be in such denominations (consistent with the
         provisions of the Indenture) and registered in such names as the
         selling Holders or the underwriters, if any, may reasonably request at
         least three Business Days prior to the closing of any sale of
         Registrable Securities;

                  (L) upon the occurrence of any event or the discovery of any
         facts, each as contemplated by Sections 3(F)(ii), (iii), (v), (vi) and
         (vii) hereof and subject to the provisions of the second paragraph
         immediately following Section 3(U) hereof, as promptly as practicable
         after the occurrence of such an event, use its reasonable commercial
         efforts to prepare a supplement or post-effective amendment to the
         Registration Statement or the related Prospectus or any document
         incorporated therein by reference or file any other required document
         so that, as thereafter delivered to the purchasers of the Registrable
         Securities or Participating Broker-Dealers, such Prospectus will not
         contain at the time of such delivery any untrue statement of a material
         fact or omit to state a material fact necessary to make the statements
         therein, in light of the circumstances under which they were made, not
         misleading or will remain so qualified. At such time as such public
         disclosure is otherwise made or the Company determines that such
         disclosure is not necessary, in each case to correct any misstatement
         of a material fact or to include any omitted material fact, the Company
         agrees promptly to notify each Holder of such determination and to
         furnish each Holder such number of copies of the Prospectus as amended
         or supplemented, as such Holder may reasonably request;

                                       13

<PAGE>

                  (M) obtain a CUSIP number for all Exchange Securities or
         Registrable Securities, as the case may be, not later than the
         effective date of a Registration Statement, and provide the Trustee
         with certificates for the Exchange Securities or the Registrable
         Securities, as the case may be, in a form eligible for deposit with the
         Depositary;

                  (N) unless the Indenture, as its relates to the Exchange
         Securities or the Registrable Securities, as the case may be, has
         already been so qualified, use its reasonable commercial efforts to (i)
         cause the Indenture to be qualified under the TIA in connection with
         the registration of the Exchange Securities or Registrable Securities,
         as the case may be, (ii) cooperate with the Trustee and the Holders to
         effect such changes to the Indenture as may be required for the
         Indenture to be so qualified in accordance with the terms of the TIA
         and (iii) execute, and use its reasonable commercial efforts to cause
         the Trustee to execute, all documents as may be required to effect such
         changes, and all other forms and documents required to be filed with
         the SEC to enable the Indenture to be so qualified in a timely manner;

                  (O) in the case of a Shelf Registration, enter into agreements
         (including underwriting agreements) and take all other customary and
         appropriate actions in order to expedite or facilitate the disposition
         of such Registrable Securities and in such connection whether or not an
         underwriting agreement is entered into and whether or not the
         registration is an underwritten registration:

                           (i)      make such representations and warranties to
                  the Holders of such Registrable Securities and the
                  underwriters, if any, in form, substance and scope as has been
                  customarily made by the Company to underwriters in similar
                  offerings of debt securities of the Company;

                           (ii)     obtain opinions of counsel of the Company
                  and updates thereof (which counsel and opinions (in form,
                  scope and substance) shall be reasonably satisfactory to the
                  managing underwriters, if any, and the Holders of a majority
                  in principal amount of the Registrable Securities being sold)
                  addressed to each selling Holder and the underwriters, if any,
                  covering the matters customarily covered in opinions requested
                  in sales of securities or underwritten offerings of the
                  Company;

                           (iii)    obtain "cold comfort" letters and updates
                  thereof from the Company's independent certified public
                  accountants (and, if necessary, any other independent
                  certified public accountants of any subsidiary of the Company
                  or of any business acquired by the Company for which financial
                  statements are, or are required to be, included in the
                  Registration Statement) addressed to the underwriters, if any,
                  and use reasonable efforts to have such letter addressed to
                  the selling Holders of Registrable Securities (to the extent
                  consistent with Statement on Auditing Standards No. 72 of the
                  American Institute of Certified Public Accounts), such letters
                  to be in customary form and covering matters of the type
                  customarily covered in "cold comfort" letters to underwriters
                  in connection with similar underwritten offerings of the
                  Company;

                                       14

<PAGE>

                           (iv)     if an underwriting agreement is entered
                  into, cause the same to set forth indemnification provisions
                  and procedures substantially equivalent to the indemnification
                  provisions and procedures set forth in Section 4 hereof with
                  respect to the underwriters and all other parties to be
                  indemnified pursuant to said Section; and

                           (v)      deliver such documents and certificates as
                  may be reasonably requested and as are customarily delivered
                  in similar offerings to the Holders of a majority in principal
                  amount of the Registrable Securities being sold and the
                  managing underwriters, if any;

         the above shall be done at (i) the effectiveness of such Registration
         Statement (and each post-effective amendment thereto) and (ii) each
         closing under any underwriting or similar agreement as and to the
         extent required thereunder;

                  (P) in the case of a Shelf Registration or if a Prospectus is
         required to be delivered by any Participating Broker-Dealer in the case
         of an Exchange Offer, make available for inspection by representatives
         of the Holders of the Registrable Securities, any underwriters
         participating in any disposition pursuant to a Shelf Registration
         Statement, any Participating Broker-Dealer and any counsel or
         accountant retained by any of the foregoing, all financial and other
         records, pertinent corporate documents and properties of the Company
         reasonably requested by any such persons, and cause the respective
         officers, directors, employees and any other agents of the Company to
         supply all information reasonably requested by any such representative,
         underwriter, special counsel or accountant in connection with a
         Registration Statement, and make such representatives of the Company
         available for discussion of such documents as shall be reasonably
         requested by the Initial Purchasers in order to enable such persons to
         conduct a reasonable investigation within the meaning of Section 11 of
         the 1933 Act; provided, however, that such persons shall first agree in
         writing with the Company that any information that is reasonably and in
         good faith designated by the Company in writing as confidential at the
         time of delivery of such information shall be kept confidential by such
         persons, unless (i) disclosure of such information is required by court
         or administrative order or is necessary to respond to inquiries of
         regulatory authorities, (ii) disclosure of such information is required
         by law (including any disclosure requirements pursuant to federal
         securities laws in connection with the filing of the Shelf Registration
         Statement or the use of any Prospectus), (iii) such information becomes
         generally available to the public other than as a result of a
         disclosure or failure to safeguard such information by such persons or
         (iv) such information becomes available to such persons from a source
         other than the Company and its subsidiaries and such source is not
         known by such persons to be bound by a confidentiality agreement; and
         provided, further, that the foregoing inspection and information
         gathering shall be coordinated by (x) the managing underwriter in
         connection with any underwritten offering pursuant to a Shelf
         Registration, (y) the Holder or Holders designated by the participating
         Majority Holders in connection with any nonunderwritten offering
         pursuant to a Shelf Registration or (z) the Participating Broker-Dealer
         holding the largest amount of Registrable Securities in the case of use
         of a Prospectus included in the Exchange Offer Registration Statement,
         together with one counsel designated by and on behalf of such persons;

                                       15

<PAGE>

                  (Q) (i) in the case of an Exchange Offer Registration
         Statement, within a reasonable time prior to the filing of any Exchange
         Offer Registration Statement, any Prospectus forming a part thereof,
         any amendment to an Exchange Offer Registration Statement or amendment
         or supplement to such Prospectus, provide copies of such document to
         the Initial Purchasers and to counsel to the Holders of Registrable
         Securities and make such changes in any such document prior to the
         filing thereof as the Initial Purchasers or counsel to the Holders of
         Registrable Securities may reasonably request and, except as otherwise
         required by applicable law, not file any such document in a form to
         which the Initial Purchasers on behalf of the Holders of Registrable
         Securities and counsel to the Holders of Registrable Securities shall
         not have previously been advised and furnished a copy of or to which
         the Initial Purchasers on behalf of the Holders of Registrable
         Securities or counsel to the Holders of Registrable Securities shall
         reasonably object (which objection shall be made within a reasonable
         period of time), and make the representatives of the Company available
         for discussion of such documents as shall be reasonably requested by
         the Initial Purchasers; and (ii) in the case of a Shelf Registration, a
         reasonable time prior to filing any Shelf Registration Statement, any
         Prospectus forming a part thereof, any amendment to such Shelf
         Registration Statement or amendment or supplement to such Prospectus,
         provide copies of such document to the Holders of Registrable
         Securities, to the Initial Purchasers, to counsel for the Holders and
         to the underwriter or underwriters of an underwritten offering of
         Registrable Securities, if any, make such changes in any such document
         prior to the filing thereof as the Initial Purchasers, the counsel to
         the Holders or the underwriter or underwriters reasonably request and
         not file any such document in a form to which the Majority Holders, the
         Initial Purchasers on behalf of the Holders of Registrable Securities,
         counsel for the Holders of Registrable Securities or any underwriter
         shall not have previously been advised and furnished a copy of or to
         which the Majority Holders, the Initial Purchasers on behalf of the
         Holders of Registrable Securities, counsel to the Holders of
         Registrable Securities or any underwriter shall reasonably object
         (which objection shall be made within a reasonable period of time), and
         make the representatives of the Company available for discussion of
         such document as shall be reasonably requested by the Holders of
         Registrable Securities, the Initial Purchasers on behalf of such
         Holders, counsel for the Holders of Registrable Securities or any
         underwriter;

                  (R) use its reasonable commercial efforts to (a) if the
         Securities have been rated prior to the initial sale of such
         Securities, confirm such ratings will apply to the Securities covered
         by a Registration Statement, or (b) if the Securities were not
         previously rated, cause the Securities covered by a Registration
         Statement to be rated with the appropriate rating agencies, if so
         requested by Holders of a majority in aggregate principal amount of
         Securities covered by such Registration Statement, or by the managing
         underwriters, if any.

                  (S) otherwise comply with all applicable rules and regulations
         of the SEC and make available to its security holders, as soon as
         reasonably practicable, an earnings statement covering at least 12
         months which shall satisfy the provisions of Section 11(a) of the 1933
         Act and Rule 158 thereunder;

                                       16

<PAGE>

                  (T) cooperate and assist in any filings required to be made
         with the NASD and, in the case of a Shelf Registration, in the
         performance of any due diligence investigation by any underwriter and
         its counsel (including any "qualified independent underwriter" that is
         required to be retained in accordance with the rules and regulations of
         the NASD); and

                  (U) upon consummation of an Exchange Offer, obtain a customary
         opinion of counsel to the Company addressed to the Trustee for the
         benefit of all Holders of Registrable Securities participating in the
         Exchange Offer, and which includes an opinion substantially to the
         effect that (i) the Company has duly authorized, executed and delivered
         the Exchange Securities and the related supplemental indenture and (ii)
         each of the Exchange Securities and related indenture constitute a
         legal, valid and binding obligation of the Company, enforceable against
         the Company in accordance with its respective terms (with customary
         exceptions).

         In the case of a Shelf Registration Statement, the Company may (as a
condition to such Holder's participation in the Shelf Registration) require each
Holder of Registrable Securities to furnish to the Company such information
regarding the Holder and the proposed distribution by such Holder of such
Registrable Securities as the Company may from time to time reasonably require
for inclusion in the Shelf Registration Statement and request in writing.

         In the case of a Shelf Registration Statement, each Holder agrees, and
in the case of the Exchange Offer Registration Statement, each Participating
Broker-Dealer agrees, that, upon receipt of any notice from the Company of (a)
the happening of any event or the discovery of any facts, each of the kind
described in Sections 3(F)(ii), (iii) or (v) hereof or (b) the Company's
determination, in its reasonable judgment, upon advice of counsel, that the
continued effectiveness and use of the Shelf Registration Statement or the
Prospectus included in the Shelf Registration Statement or the Exchange Offer
Registration Statement would (x) require the disclosure of material information,
which the Company has a bona fide business reason for preserving as
confidential, or (y) interfere with any financing, acquisition, corporate
reorganization or other material transaction involving the Company or any of its
subsidiaries, such Holder or Participating Broker-Dealer, as the case may be,
will forthwith discontinue disposition of Registrable Securities pursuant to
such Registration Statement or Prospectus until the receipt by such Holder or
Participating Broker-Dealer, as the case may be, of either copies of the
supplemented or amended Prospectus contemplated by Section 3(L) hereof, and, if
so directed by the Company, such Holder or Participating Broker-Dealers will
deliver to the Company (at its expense) all copies in its possession of the
Prospectus covering such Registrable Securities current at the time of receipt
of such notice, or notice in writing from the Company that such Holder or
Participating Broker-Dealers may resume disposition of Registrable Securities
pursuant to such Registration Statement or Prospectus. If the Company shall give
any such notice described in clause (a) above to suspend the disposition of
Registrable Securities pursuant to a Registration Statement as a result of the
happening of any event or the discovery of any facts, each of the kind described
in Section 3(F)(ii), (iii) and (v) hereof, the Company shall be deemed to have
used its reasonable commercial efforts to keep such Registration Statement
effective during such Suspension Period provided that the Company shall use its
reasonable commercial efforts to file and have declared effective (if an
amendment) as soon as practicable an amendment or supplement to such
Registration Statement. The Company shall extend the period during which such
Registration Statement shall be maintained effective or the Prospectus

                                       17

<PAGE>

used pursuant to this Agreement by the number of days during the period from and
including the date of the giving of the notice described in clauses (a) and (b)
above to and including the date when the Holders or Participating Broker-Dealers
shall have received copies of the supplemented or amended Prospectus necessary
to resume such dispositions or notification that they may resume such
disposition under an existing Prospectus.

         If any of the Registrable Securities covered by any Shelf Registration
Statement are to be sold in an underwritten offering, the underwriter or
underwriters and manager or managers that will manage such offering will be
selected by the Majority Holders of such Registrable Securities included in such
offering and shall be reasonably acceptable to the Company. No Holder of
Registrable Securities may participate in any underwritten registration
hereunder unless such Holder (a) agrees to sell such Holder's Registrable
Securities on the basis provided in any underwriting arrangements approved by
the persons entitled hereunder to approve such arrangements and (b) completes
and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents required under the terms of such underwriting
arrangements.

         4.       Indemnification; Contribution.

         (A)      In the event of a Shelf Registration Statement or in
connection with any prospectus delivery pursuant to an Exchange Offer
Registration Statement by an Initial Purchaser or Participating Broker-Dealer,
the Company agrees to indemnify and hold harmless the Initial Purchasers, each
Holder, each Participating Broker-Dealer, each Person who participates as an
underwriter (any such Person being an "Underwriter") and each Person, if any,
who controls any Initial Purchaser, Holder, Participating Broker-Dealer or
Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of
the 1934 Act (collectively, the "Section 4 Persons"), against any losses,
claims, damages, liabilities or expenses (including the reasonable cost of
investigating and defending against any claims therefore and counsel fees
incurred in connection therewith as such expenses are incurred), joint or
several, which may be based upon either the 1933 Act, or the 1934 Act, or any
other statute or at common law, on the ground or alleged ground that any
Registration Statement (or any amendment or supplement thereto) pursuant to
which Exchange Securities or Registrable Securities were registered under the
1933 Act or any Prospectus included therein (or any amendment or supplement
thereto) included or allegedly included an untrue statement of material fact or
omitted to state a material fact required to be stated therein or necessary in
order to make the statements therein not misleading, unless such statement or
omission was made in reliance upon, and in conformity with, written information
furnished to the Company by any such Section 4 Person specifically for use in
the preparation thereof; provided that in no case is the Company to be liable
with respect to any claims made against any Section 4 Person unless such Section
4 Person shall have notified the Company in writing within a reasonable time
after the summons or other first legal process giving information of the nature
of the claim shall have been served upon such Section 4 Person, but failure to
notify the Company of any such claim shall not relieve it from any liability
which it may have to such Section 4 Person otherwise than on account of the
indemnity agreement contained in this paragraph; and provided, further, that the
foregoing indemnity with respect to any Prospectus, including any preliminary
prospectus or preliminary prospectus supplement, shall not inure to the benefit
of any Section 4 Person if a copy of the Prospectus (as amended or supplemented,
exclusive of the material incorporated by reference) had not been sent or given
by

                                       18

<PAGE>

or on behalf of such Section 4 Person to the Person asserting any such losses,
claims, damages or liabilities concurrently with or prior to delivery of the
written confirmation of the sale of Exchange Securities or Registrable
Securities, as the case may be, to such Person and the untrue statement or
omission of a material fact contained in any such Prospectus was corrected in
the Prospectus (as amended or supplemented) if the Company had previously
furnished copies thereof to such Section 4 Persons.

         The Company will be entitled to participate at its own expense in the
defense, or, if it so elects, to assume the defense of any suit brought to
enforce any such liability, but, if the Company elects to assume the defense,
such defense shall be conducted by counsel chosen by it. In the event that the
Company elects to assume the defense of any such suit and retains such counsel,
each Section 4 Person may retain additional counsel but shall bear the fees and
expenses of such counsel unless (i) the Company shall have specifically
authorized the retaining of such counsel or (ii) the parties to such suit
include the Section 4 Person or Section 4 Persons and such persons have been
advised by such counsel that one or more legal defenses may be available to it
or them which may not be available to the Company, in which case the Company
shall not be entitled to assume the defense of such suit on behalf of such
Section 4 Person, notwithstanding its obligation to bear the reasonable fees and
expenses of such counsel, it being understood, however, that the Company shall
not, in connection with any one such suit or proceeding or separate but
substantially similar or related actions or proceedings in the same jurisdiction
arising out of the same general allegations or circumstances, be liable for the
reasonable fees and expenses of more than one separate firm of attorneys at any
time for all such Section 4 Persons, which firm shall be designated in writing
by the Initial Purchasers. The Company shall not be liable to indemnify any
Person for any settlement of any such claim effected without the Company's prior
written consent. This indemnity agreement will be in addition to any liability,
which the Company might otherwise have.

         (B)      Each Section 4 Person agrees severally and not jointly to
indemnify and hold harmless the Company, each of the Company's directors, each
of the Company's officers who have signed the Registration Statement and each
person, if any, who controls the Company within the meaning of the 1933 Act or
the 1934 Act, against any losses, claims, damages, liabilities or expenses
(including the reasonable cost of investigating and defending against any claims
therefor and counsel fees incurred in connection therewith as such expenses are
incurred), joint or several, which may be based upon the 1933 Act, or any other
statute or at common law, on the ground or alleged ground that any Registration
Statement (or any amendment or supplement thereto) pursuant to which Exchange
Securities or Registrable Securities were registered under the 1933 Act or any
Prospectus included therein (or any amendment or supplement thereto) included or
allegedly included an untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary in order to make the
statements therein not misleading, but only insofar as any such statement or
omission was made in reliance upon, and in conformity with, written information
furnished to the Company by such Section 4 Person specifically for use in the
preparation thereof; provided that in no case is such Section 4 Person to be
liable with respect to any claims made against the Company or any such director,
officer or controlling person unless the Company or any such director, officer
or controlling person shall have notified such Section 4 Person in writing
within a reasonable time after the summons or other first legal process giving
information of the nature of the claim shall have been served upon the Company
or any such director, officer or controlling person, but

                                       19

<PAGE>

failure to notify such Section 4 Person of any such claim shall not relieve it
from any liability which it may have to the Company or any such director,
officer or controlling person otherwise than on account of the indemnity
agreement contained in this paragraph. Notwithstanding any other provision of
this subsection (B), with respect to any amount due to an indemnified person
under this subsection (B), such Section 4 Person shall not be liable for any
amount in excess of the amount by which the net proceeds received by such
Section 4 Person from the sale of Exchange Securities or Registrable Securities
pursuant to a Registration Statement exceeds the amount of damages which such
Section 4 Person has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission.

         Such Section 4 Person will be entitled to participate at its own
expense in the defense, or, if it so elects, to assume the defense of any suit
brought to enforce any such liability, but, if such Section 4 Person elects to
assume the defense, such defense shall be conducted by counsel chosen by it. In
the event that such Section 4 Person elects to assume the defense of any such
suit and retain such counsel, the Company or such director, officer or
controlling person, defendant or defendants in the suit, may retain additional
counsel but shall bear the fees and expenses of such counsel unless (i) such
Section 4 Person shall have specifically authorized the retaining of such
counsel or (ii) the parties to such suit include the Company or any such
director, officer, trustee or controlling person and such Section 4 Person and
the Company or such director, officer, trustee or controlling person have been
advised by such counsel that one or more legal defenses may be available to it
or them which may not be available to such Section 4 Person, in which case such
Section 4 Person shall not be entitled to assume the defense of such suit on
behalf of the Company or such director, officer, trustee or controlling person,
notwithstanding its obligation to bear the reasonable fees and expenses of such
counsel, it being understood, however, that such Section 4 Person shall not, in
connection with any one such suit or proceeding or separate but substantially
similar or related actions or proceedings in the same jurisdiction arising out
of the same general allegations or circumstances, be liable for the reasonable
fees and expenses of more than one a separate firm of attorneys at any time for
all of the Company and any such director, officer or controlling person, which
firm shall be designated in writing by the Company. Such Section 4 Person shall
not be liable to indemnify any person for any settlement of any such claim
effected without such Section 4 Person's prior written consent. This indemnity
agreement will be in addition to any liability which such Section 4 Person might
otherwise have.

         (C)      If the indemnification provided for in this Section 4 is
unavailable or insufficient to hold harmless an indemnified party under
subsections (A) or (B) above, then each indemnifying party shall contribute to
the amount paid or payable by such indemnified party as a result of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to in
subsection (A) or (B) above in such proportion as is appropriate to reflect the
relative fault of the indemnifying party or parties on the one hand and the
indemnified party on the other in connection with the statements or omissions
that resulted in such losses, claims, damages or liabilities (or actions in
respect thereof) as well as any other relevant equitable considerations. The
relative fault of the parties shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Company on the one hand or such Holder or such other indemnified
party, as the case may be, on the other, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or

                                       20

<PAGE>

omission. The amount paid by an indemnified party as a result of the losses,
claims, damages or liabilities referred to in the first sentence of this
subsection (C) shall be deemed to include any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending
any action or claim which is the subject of this subsection (C). Notwithstanding
any other provision of this subsection (C), the Holders of the Securities and
the Exchange Securities shall not be required to contribute any amount in excess
of the amount by which the net proceeds received by such Holders from the sale
of such securities pursuant to a Registration Statement exceeds the amount of
damages which such Holders have otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission. The
obligations of the Holders of the Securities and Exchange Securities in this
subsection (C) to contribute are several in proportion to the net proceeds
received from the sale of such securities by such Holder and not joint. No
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the 1933 Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation. For purposes of this subsection
(C), each person, if any, who controls such indemnified party within the meaning
of the 1933 Act or the 1934 Act shall have the same rights to contribution as
such indemnified party and each person, if any, who controls the Company within
the meaning of the 1933 Act or the 1934 Act shall have the same rights to
contribution as the Company.

         5.       Miscellaneous.

                  5.1 Rule 144 and Rule 144A. For so long as the Company is
subject to the reporting requirements of Section 13 or 15 of the 1934 Act, the
Company covenants that it will file the reports required to be filed by it under
the 1933 Act and Section 13(a) or 15(d) of the 1934 Act and the rules and
regulations adopted by the SEC thereunder. If the Company ceases to be so
required to file such reports, the Company covenants that it will upon the
request of any Holder of Registrable Securities (A) make publicly available such
information as is necessary to permit sales pursuant to Rule 144 under the 1933
Act, (B) deliver such information to a prospective purchaser as is necessary to
permit sales pursuant to Rule 144A under the 1933 Act and (C) take such further
action that is reasonable in the circumstances, in each case, to the extent
required from time to time to enable such Holder to sell its Registrable
Securities without registration under the 1933 Act within the limitation of the
exemptions provided by (i) Rule 144 under the 1933 Act, as such Rule may be
amended from time to time, (ii) Rule 144A under the 1933 Act, as such Rule may
be amended from time to time or (iii) any similar rules or regulations hereafter
adopted by the SEC. Upon the request of any Holder of Registrable Securities,
the Company will deliver to such Holder a written statement as to whether it has
complied with such requirements.

                  5.2 No Inconsistent Agreements. The Company has not entered
into and the Company will not after the date of this Agreement enter into any
agreement which is inconsistent with the rights granted to the Holders of
Registrable Securities in this Agreement or otherwise conflicts with the
provisions hereof. The rights granted to the Holders hereunder do not and will
not for the term of this Agreement in any way conflict with the rights granted
to the holders of the Company's other issued and outstanding securities under
any such agreements.

                  5.3 Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or

                                       21

<PAGE>

consents to departures from the provisions hereof may not be given unless the
Company has obtained the written consent of Holders of at least a majority in
aggregate principal amount of the outstanding Registrable Securities affected by
such amendment, modification, supplement, waiver or departure. Without the
consent of the Holder of each Security however, no modification may change the
provisions relating to the payment of Additional Interest.

                  5.4 Notices. All notices and other communications provided for
or permitted hereunder shall be made in writing by hand delivery, registered
first-class mail, telex, telecopier, or any courier guaranteeing overnight
delivery (a) if to a Holder, at the most current address given by such Holder to
the Company by means of a notice given in accordance with the provisions of this
Section 5.4, which address initially is the address set forth in the Purchase
Agreement with respect to the Initial Purchasers; and (b) if to the Company,
initially at the Company's address set forth in the Purchase Agreement, and
thereafter at such other address of which notice is given in accordance with the
provisions of this Section 5.4.

         All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; two Business Days
after being deposited in the mail, postage prepaid, if mailed; when answered
back, if telexed; when receipt is acknowledged, if telecopied; and on the next
Business Day if timely delivered to an air courier guaranteeing overnight
delivery.

         Copies of all such notices, demands or other communications shall be
concurrently delivered by the person giving the same to the Trustee under the
Indenture, at the address specified in such Indenture.

                  5.5 Successor and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors, assigns and transferees of each
of the parties, including, without limitation and without the need for an
express assignment, subsequent Holders; provided that nothing herein shall be
deemed to permit any assignment, transfer or other disposition of Registrable
Securities in violation of the terms of the Purchase Agreement or the Indenture.
If any transferee of any Holder shall acquire Registrable Securities, in any
manner, whether by operation of law or otherwise, such Registrable Securities
shall be held subject to all of the terms of this Agreement, and by taking and
holding such Registrable Securities such person shall be conclusively deemed to
have agreed to be bound by and to perform all of the terms and provisions of
this Agreement, including the restrictions on resale set forth in this Agreement
and, if applicable, the Purchase Agreement, and such person shall be entitled to
receive the benefits hereof.

                  5.6 Third Party Beneficiaries. The Initial Purchasers (even if
the Initial Purchasers are not Holders of Registrable Securities) shall be third
party beneficiaries to the agreements made hereunder between the Company, on the
one hand, and the Holders, on the other hand, and shall have the right to
enforce such agreements directly to the extent they deem such enforcement
necessary or advisable to protect their rights or the rights of Holders
hereunder. Each Holder of Registrable Securities shall be a third party
beneficiary to the agreements made hereunder between the Company, on the one
hand, and the Initial Purchasers, on the other hand, and shall have the right to
enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights hereunder.

                                       22

<PAGE>

                  5.7 Specific Performance. Without limiting the remedies
available to the Initial Purchasers and the Holders, the Company acknowledges
that any failure by the Company to comply with its obligations under Sections
2.1 through 2.4 hereof may result in material irreparable injury to the Initial
Purchasers or the Holders for which there is no adequate remedy at law, that it
would not be possible to measure damages for such injuries precisely and that,
in the event of any such failure, the Initial Purchasers or any Holder may
obtain such relief as may be required to specifically enforce the Company's
obligations under Sections 2.1 through 2.4 hereof.

                  5.8 Restriction on Resales. Until the expiration of two years
after the original issuance of the Securities, the Company will not, and will
cause its "affiliates" (as such term is defined in Rule 144(a)(1) under the 1933
Act) not to, resell any Securities which are "restricted securities" (as such
term is defined under Rule 144(a)(3) under the 1933 Act) that have been
reacquired by any of them and shall immediately upon any purchase of any such
Securities submit such Securities to the Trustee for cancellation.

                  5.9 Counterparts. This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

                  5.10 Headings. The headings in this Agreement are for the
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

                  5.11 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
THE PRINCIPLES OF CONFLICT OF LAWS THEREOF.

                  5.12 Severability. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.

                  5.13 Entire Agreement. This Agreement and the Purchase
Agreement represent the entire agreement among the parties hereto with respect
to the subject matter hereof and supercedes and replaces any and all prior
agreements and understandings, whether oral or written, with respect thereto.

                                       23

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

                                                      CENTERPOINT ENERGY HOUSTON
                                                        ELECTRIC, LLC

                                                      By:  /s/ MARC KILBRIDE
                                                         -----------------------
                                                         Name:  Marc Kilbride
                                                         Title: Treasurer
CONFIRMED AND ACCEPTED
AS OF THE DATE FIRST ABOVE WRITTEN:

SALOMON SMITH BARNEY INC., for itself and
as representative of the Initial Purchasers

By:  /s/ HOWARD HILLER
   -----------------------------------------------
   Name:  Howard Hiller
   Title: Managing Director

CREDIT SUISSE FIRST BOSTON LLC, for itself and
as representative of the Initial Purchasers

By:  /s/ BRUCE MacLENNAN
   -----------------------------------------------
   Name:  Bruce MacLennan
   Title: Director

DEUTSCHE BANK SECURITIES INC., for itself and
as representative of the Initial Purchasers

By:  /s/ CHARLES W. CHIGAS
   -----------------------------------------------
   Name:  Charles W. Chigas
   Title: Managing Director

By:  /s/ NIGEL CREE
   -----------------------------------------------
   Name:  Nigel Cree
   Title: Head of Syndicate, Americas

                                       24

<PAGE>

                                                                         ANNEX A

         Each broker-dealer that receives Exchange Securities for its own
account pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities. The Letter
of Transmittal states that by so acknowledging and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an "underwriter" within the
meaning of the 1933 Act. This Prospectus, as it may be amended or supplemented
from time to time, may be used by a broker-dealer in connection with resales of
Exchange Securities received in exchange for Securities where such Securities
were acquired by such broker-dealer as a result of market-making activities or
other trading activities. The Company has agreed that, for a period of 180 days
after the Expiration Date (as defined herein), it will make this Prospectus
available to any broker-dealer for use in connection with any such resale. See
"Plan of Distribution."

<PAGE>

                                                                         ANNEX B

         Each broker-dealer that receives Exchange Securities for its own
account in exchange for Securities, where such Securities were acquired by such
broker-dealer as a result of market-making activities or other trading
activities, must acknowledge that it will deliver a prospectus in connection
with any resale of such Exchange Securities. See "Plan of Distribution."

                                       2

<PAGE>

                                                                         ANNEX C

                              PLAN OF DISTRIBUTION

         Each broker-dealer that receives Exchange Securities for its own
account pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities. This
Prospectus, as it may be amended or supplemented from time to time, may be used
by a broker-dealer in connection with resales of Exchange Securities received in
exchange for Securities where such Securities were acquired as a result of
market-making activities or other trading activities. The Company has agreed
that, for a period of 180 days after the Expiration Date, it will make this
Prospectus, as amended or supplemented, available to any broker-dealer for use
in connection with any such resale. In addition, until , 200 , all dealers
effecting transactions in the Exchange Securities may be required to deliver a
prospectus.(1)

         The Company will not receive any proceeds from any sale of Exchange
Securities by broker-dealers. Exchange Securities received by broker-dealers for
their own account pursuant to the Exchange Offer may be sold from time to time
in one or more transactions in the over-the-counter market, in negotiated
transactions, through the writing of options on the Exchange Securities or a
combination of such methods of resale, at market prices prevailing at the time
of resale, at prices related to such prevailing market prices or negotiated
prices. Any such resale may be made directly to purchasers or to or through
brokers or dealers who may receive compensation in the form of commissions or
concessions from any such broker-dealer or the purchasers of any such Exchange
Securities. Any broker-dealer that resells Exchange Securities that were
received by it for its own account pursuant to the Exchange Offer and any broker
or dealer that participates in a distribution of such Exchange Securities may be
deemed to be an "underwriter" within the meaning of the 1933 Act and any profit
on any such resale of Exchange Securities and any commission or concessions
received by any such persons may be deemed to be underwriting compensation under
the 1933 Act. The Letter of Transmittal states that, by acknowledging that it
will deliver and by delivering a prospectus, a broker-dealer will not be deemed
to admit that it is an "underwriter" within the meaning of the 1933 Act.

         For a period of 180 days after the Expiration Date the Company will
promptly send additional copies of this Prospectus and any amendment or
supplement to this Prospectus to any broker-dealer that requests such documents
in the Letter of Transmittal. The Company has agreed to pay all expenses
incident to the Exchange Offer (including the expenses of one counsel for the
Holders of the Securities) other than commissions or concessions of any brokers
or dealers and will indemnify the Holders of the Securities (including any
broker-dealers) against certain liabilities, including liabilities under the
1933 Act.

------------------------------
(1) In addition, the legend required by Item 502(b) of Regulation S-K will
appear on the inside front cover page of the Exchange Offer prospectus below the
Table of Contents.

                                       3

<PAGE>

                                                                         ANNEX D

[   ]CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL
COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

         Name:    ______________________________________________
         Address: ______________________________________________

If the undersigned is not a broker-dealer, the undersigned represents that it is
not engaged in, and does not intend to engage in, a distribution of Exchange
Securities. If the undersigned is a broker-dealer that will receive Exchange
Securities for its own account in exchange for Securities that were acquired as
a result of market-making activities or other trading activities, it
acknowledges that it will deliver a prospectus in connection with any resale of
such Exchange Securities; however, by so acknowledging and by delivering a
prospectus, the undersigned will not be deemed to admit that it is an
"underwriter" within the meaning of the 1933 Act.

                                       4

<PAGE>

                                                                         ANNEX E

                           FORM OF OPINION OF COUNSEL

         The Indenture has been duly qualified under the Trust Indenture Act of
1939, as amended.

         The Registration Statement has become effective under the 1933 Act,
and, to the best of our knowledge, no stop order suspending the effectiveness of
the Registration Statement or any part thereof has been issued and no
proceedings for that purpose have been instituted and are pending or are
threatened by the SEC under the 1933 Act.

         The Exchange Offer Registration Statement and the Prospectus (except
for (A) the financial statements, including the notes and schedules, if any
thereto (except to the extent such notes describe legal and governmental
proceedings to which the Company is a party and are incorporated by reference
into one or more items of a report that is incorporated by reference or included
in therein other than an item that requires financial statements to be provided)
or the auditor's reports on the audited portions thereof, (B) the other
accounting, financial and related statistical data , and (C) the exhibits
thereto, as to which we have not been asked to comment) comply as to form in all
material respects with the applicable requirements of the 1933 Act and the
applicable rules and regulations promulgated under the 1933 Act.

         We have participated in conferences with certain officers and other
representatives of the Company, representatives of the independent public
accountants of the Company, representatives of the [Initial Purchasers]
[Holders] and counsel for the [Initial Purchasers] [Holders], at which the
contents of the Registration Statement and the Prospectus and related matters
were discussed. Although we have not undertaken to determine independently, and
do not assume any responsibility for, the accuracy, completeness or fairness of
the statements contained in or incorporated by reference in the Registration
Statement or the Prospectus, we advise you that, on the basis of the foregoing
(relying as to materiality to a large extent upon statements and other
representations of officers and other representatives of the Company), no facts
have come to our attention that lead us to believe that the Registration
Statement and any amendment made thereto prior to the date hereof (except for
(A) the financial statements, including the notes and schedules, if any thereto
(except to the extent such notes describe legal and governmental proceedings to
which the Company is a party and are incorporated by reference into one or more
items of a report that is incorporated by reference or included in the
Registration Statement or the Prospectus other than an item that requires
financial statements to be provided) or the auditor's reports on the audited
portions thereof, (B) the other accounting, financial and related statistical
data , and (C) the exhibits thereto, as to which we have not been asked to
comment), as of the time the Registration Statement became effective or such
amendment was filed, contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary to
make the statements therein not misleading, or that the Prospectus, and any
amendment or supplement thereto made prior to the date hereof (except for (A)
the financial

<PAGE>

statements, including the notes and schedules, if any thereto
(except to the extent such notes describe legal and governmental proceedings to
which the Company is a party and are incorporated by reference into one or more
items of a report that is incorporated by reference or included in the
Registration Statement or Prospectus other than an item that requires financial
statements to be provided) or the auditor's reports on the audited portions
thereof, (B) the other accounting, financial and related statistical data , and
(C) the exhibits thereto, as to which we have not been asked to comment), as of
the date of the Prospectus or such amendment or supplement contained any untrue
statement of a material fact or omitted to state a material fact necessary in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading.

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