Document:

Filing

Registration Rights Agreement

EX-4.3

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (this "Agreement") is made and entered into as of October ____, 2006, by and among Moventis Capital, Inc., a Delaware corporation (the "Company"), and the purchasers listed on Schedule I hereto (the "Purchasers").

This Agreement is being entered into in connection with a Promissory Note and Common Share Purchase Warrant ("Warrant") each dated as of the date hereof among the Company and the Purchasers.

The Company and the Purchasers hereby agree as follows:

1.

Definitions.

Capitalized terms used and not otherwise defined herein shall have the meanings given such terms in the Warrant.  As used in this Agreement, the following terms shall have the following meanings:

"Advice" shall have meaning set forth in Section 3(m).

"Affiliate" means, with respect to any Person, any other Person that directly or indirectly controls or is controlled by or under common control with such Person.  For the purposes of this definition, "control," when used with respect to any Person, means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise; and the terms of "affiliated," "controlling" and "controlled" have meanings correlative to the foregoing.

"Board" shall have meaning set forth in Section 3(n).

"Business Day" means any day except Saturday, Sunday and any day which shall be a legal holiday or a day on which banking institutions in the state of New York generally are authorized or required by law or other government actions to close.

"Closing Date" means the date of the closing of the final purchase and sale of the Common Stock and the Warrant.

"Commission" means the Securities and Exchange Commission.

"Common Stock" means the Company's Common Stock, par value $0.001 per share.

"Effectiveness Date" means with respect to the Registration Statement the earlier of (A) January 1, 2008 (or in the event the Registration Statement receives a “full review” by the Commission, February 5, 2008) or (B) the date which is within three (3) Business Days after the date on which the Commission informs the Company (i) that the Commission will not review the Registration Statement or (ii) that the Company may request the acceleration of the effectiveness of the Registration Statement and the Company makes such request; provided that, if the Effectiveness Date falls on a Saturday, Sunday or any other day which shall be a legal holiday or a day on which the Commission is authorized or required by law or other government actions to close, the Effectiveness Date shall be the following Business Day.

"Effectiveness Period" shall have the meaning set forth in Section 2.

"Event" shall have the meaning set forth in Section 7(e).

"Event Date" shall have the meaning set forth in Section 7(e).

"Exchange Act" means the Securities Exchange Act of 1934, as amended.

"Filing Date" means September 30, 2007; provided that, if the Filing Date falls on a Saturday, Sunday or any other day which shall be a legal holiday or a day on which the Commission is authorized or required by law or other government actions to close, the Filing Date shall be the following Business Day.  

"Holder" or "Holders" means the holder or holders, as the case may be, from time to time of Registrable Securities.

"Indemnified Party" shall have the meaning set forth in Section 5(c).

"Indemnifying Party" shall have the meaning set forth in Section 5(c).

"Losses" shall have the meaning set forth in Section 5(a).

"Person" means an individual or a corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or political subdivision thereof) or other entity of any kind.

"Proceeding" means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

"Prospectus" means the prospectus included in the Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by the Registration Statement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference in such Prospectus.

"Registrable Securities means the shares of Common Stock issuable upon exercise of the Warrant.

"Registration Statement" means the registration statements and any additional registration statements contemplated by Section 2, including (in each case) the Prospectus, amendments and supplements to such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference in such registration statement.

"Rule 144" means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

"Rule 158" means Rule 158 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

"Rule 415" means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

"Rule 424" means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

-2-

"Securities Act" means the Securities Act of 1933, as amended.

"Special Counsel" means Kramer Levin Naftalis & Frankel LLP, for which the Holders will be reimbursed by the Company pursuant to Section 4.

"Warrant" means the warrant to purchase shares of Common Stock issued to the Purchaser.

Warrant Shares" means the shares of Common Stock issuable from time to time upon exercise of the Warrant. 

2.

Resale Registration.

On or prior to the Filing Date, the Company shall prepare and file with the Commission a "resale" Registration Statement providing for the resale of all Registrable Securities for an offering to be made on a continuous basis pursuant to Rule 415.  The Registration Statement shall be on Form SB-2 (except if the Company is not then eligible to register for resale the Registrable Securities on Form SB-2, in which case such registration shall be on another appropriate form in accordance herewith and the Securities Act and the rules promulgated thereunder).  Such Registration Statement shall cover to the extent allowable under the Securities Act and the rules promulgated thereunder (including Rule 416), such indeterminate number of additional shares of Common Stock resulting from stock splits, stock dividends or similar transactions with respect to the Registrable Securities.  The Company shall use its best efforts to cause the Registration Statement to be declared effective under the Securities Act as promptly as possible after the filing thereof, but in any event prior to the Effectiveness Date, and to keep such Registration Statement continuously effective under the Securities Act until such date as is the earlier of (x) the date when all Registrable Securities covered by such Registration Statement have been sold or (y) the date on which the Registrable Securities may be sold without any restriction pursuant to Rule 144(k) as determined by the counsel to the Company pursuant to a written opinion letter, addressed to the Company's transfer agent to such effect (the "Effectiveness Period").  The Company shall request that the effective time of the Registration Statement is 4:00 p.m. Eastern Time on the effective date.  If at any time and for any reason, an additional Registration Statement is required to be filed because at such time the actual number of shares of Common Stock into which the Warrant is exercisable plus the number of shares of Common Stock exceeds the number of Registrable Securities remaining under the Registration Statement, the Company shall have twenty (20) Business Days to file such additional Registration Statement, and the Company shall use its best efforts to cause such additional Registration Statement to be declared effective by the Commission as soon as possible, but in no event later than sixty (60) days after filing.  

3.

Registration Procedures.

          

In connection with the Company's registration obligations hereunder, the Company shall:

          

          

(a) 

Prepare and file with the Commission, on or prior to the Filing Date, a Registration Statement on Form SB-2 (or if the Company is not then eligible to register for resale the Registrable Securities on Form SB-2 such registration shall be on another appropriate form in accordance herewith and the Securities Act and the rules promulgated thereunder) in accordance with the plan of distribution as set forth on Exhibit A hereto and in accordance with applicable law, and cause the Registration Statement to become effective and remain effective as provided herein; provided, however, that not less than five (5) Business Days prior to the filing of the Registration Statement or any related Prospectus or any amendment or supplement thereto, the Company shall (i) furnish to the Holders and any Special Counsel, copies of all such documents proposed to be filed, which documents will be subject to the review of such Holders and such Special Counsel, and (ii) cause its officers and directors, counsel and independent certified public accountants to respond to such inquiries as shall be necessary, in the reasonable opinion of Special Counsel, to conduct a reasonable review of such documents.  The Company shall not file the Registration Statement or any such Prospectus or any amendments or 

-3-

supplements thereto to which the Holders of a majority of the Registrable Securities or any Special Counsel shall reasonably object in writing within three (3) Business Days of their receipt thereof.  In the event that the Holders of a majority of the Registrable Securities or any Special Counsel object to the filing of the Registration Statement, the Filing Date and the Effectiveness Date shall be stayed on such date of objection until such time that the Company is permitted to file the Registration Statement with the approval of the Holders of a majority of the Registrable Securities.

(b)

(i) Prepare and file with the Commission such amendments, including post-effective amendments, to the Registration Statement as may be necessary to keep the Registration Statement continuously effective as to the applicable Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration Statements as necessary in order to register for resale under the Securities Act all of the Registrable Securities; (ii) cause the related Prospectus to be amended or supplemented by any required Prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule 424 (or any similar provisions then in force) promulgated under the Securities Act; (iii) respond as promptly as possible, but in no event later than ten (10) Business Days, to any comments received from the Commission with respect to the Registration Statement or any amendment thereto and as promptly as possible provide the Holders true and complete copies of all correspondence from and to the Commission relating to the Registration Statement; (iv) file the final prospectus pursuant to Rule 424 of the Securities Act no later than 9:00 a.m. Eastern Time on the Business Day following the date the Registration Statement is declared effective by the Commission; and (v) comply in all material respects with the provisions of the Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by the Registration Statement during the Effectiveness Period in accordance with the intended methods of disposition by the Holders thereof set forth in the Registration Statement as so amended or in such Prospectus as so supplemented.

(c)

Notify the Holders of Registrable Securities and any Special Counsel as promptly as possible (and, in the case of (i)(A) below, not less than three (3) Business Days prior to such filing, and in the case of (iii) below, on the same day of receipt by the Company of such notice from the Commission) and (if requested by any such Person) confirm such notice in writing no later than one (1) Business Day following the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to the Registration Statement is filed; (B) when the Commission notifies the Company whether there will be a "review" of such Registration Statement and whenever the Commission comments in writing on such Registration Statement and (C) with respect to the Registration Statement or any post-effective amendment, when the same has become effective; (ii) of any request by the Commission or any other Federal or state governmental authority for amendments or supplements to the Registration Statement or Prospectus or for additional information; (iii) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement covering any or all of the Registrable Securities or the initiation or threatening of any Proceedings for that purpose; (iv) if at any time any of the representations and warranties of the Company contained in any agreement contemplated hereby ceases to be true and correct in all material respects; (v) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; and (vi) of the occurrence of any event that makes any statement made in the Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to the Registration Statement, Prospectus or other documents so that, in the case of the Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

          

(d)

Use its best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of, as promptly as possible, (i) any order suspending the effectiveness of the Registration Statement or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction.

(e)

If requested by the Holders of a majority in interest of the Registrable Securities, (i) promptly incorporate in a Prospectus supplement or post-effective amendment to the Registration 

-4-

Statement such information as the Company reasonably agrees should be included therein and (ii) make all required filings of such Prospectus supplement or such post-effective amendment as soon as practicable after the Company has received notification of the matters to be incorporated in such Prospectus supplement or post-effective amendment.

(f)

If requested by any Holder, furnish to such Holder and any Special Counsel, without charge, at least one conformed copy of each Registration Statement and each amendment thereto, including financial statements and schedules, all documents incorporated or deemed to be incorporated therein by reference, and all exhibits to the extent requested by such Person (including those previously furnished or incorporated by reference) promptly after the filing of such documents with the Commission.

(g)

Promptly deliver to each Holder and any Special Counsel, without charge, as many copies of the Prospectus or Prospectuses (including each form of prospectus) and each amendment or supplement thereto as such Persons may reasonably request; and subject to the provisions of Sections 3(m) and 3(n), the Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto.

(h)

Prior to any public offering of Registrable Securities, use its best efforts to register or qualify or cooperate with the selling Holders and any Special Counsel in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions within the United States as any Holder requests in writing, to keep each such registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things necessary or advisable to enable the disposition in such jurisdictions of the Registrable Securities covered by a Registration Statement; provided, however, that the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified or to take any action that would subject it to general service of process in any such jurisdiction where it is not then so subject or subject the Company to any material tax in any such jurisdiction where it is not then so subject.

          

(i)

Cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold pursuant to a Registration Statement, which certificates, to the extent permitted by the Warrant and applicable federal and state securities laws, shall be free of all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in such names as any Holder may request in connection with any sale of Registrable Securities.

(j)

Upon the occurrence of any event contemplated by Section 3(c)(vi), as promptly as possible, prepare a supplement or amendment, including a post-effective amendment, to the Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as thereafter delivered, neither the Registration Statement nor such Prospectus will 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, in the light of the circumstances under which they were made, not misleading.

(k)

Use its best efforts to cause all Registrable Securities relating to the Registration Statement to be listed or quoted on the OTC Bulletin Board or any other securities exchange, quotation system or market, if any, on which similar securities issued by the Company are then listed or traded as and when required pursuant to the Warrant.

(l)

Comply in all material respects with all applicable rules and regulations of the Commission and make generally available to its security holders all documents filed or required to be filed with the Commission, including, but not limited, to, earning statements satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 not later than 45 days after the end of any 3-month period (or 90 

-5-

days after the end of any 12-month period if such period is a fiscal year) commencing on the first day of the first fiscal quarter of the Company after the effective date of the Registration Statement, which statement shall conform to the requirements of Rule 158.  

(m)

The Company may require each selling Holder to furnish to the Company information regarding such Holder and the distribution of such Registrable Securities as is required by law to be disclosed in the Registration Statement, Prospectus, or any amendment or supplement thereto, and the Company may exclude from such registration the Registrable Securities of any such Holder who unreasonably fails to furnish such information within a reasonable time after receiving such request.

If the Registration Statement refers to any Holder by name or otherwise as the holder of any securities of the Company, then such Holder shall have the right to require (if such reference to such Holder by name or otherwise is not required by the Securities Act or any similar federal statute then in force) the deletion of the reference to such Holder in any amendment or supplement to the Registration Statement filed or prepared subsequent to the time that such reference ceases to be required.

Each Holder covenants and agrees that it will not sell any Registrable Securities under the Registration Statement until the Company has electronically filed the Prospectus as then amended or supplemented as contemplated in Section 3(g) and notice from the Company that the Registration Statement and any post-effective amendments thereto have become effective as contemplated by Section 3(c).

Each Holder agrees by its acquisition of such Registrable Securities that, upon receipt of a notice from the Company of the occurrence of any event of the kind described in Section 3(c)(ii), 3(c)(iii), 3(c)(iv), 3(c)(v), 3(c)(vi) or 3(n), such Holder will forthwith discontinue disposition of such Registrable Securities under the Registration Statement until such Holder's receipt of the copies of the supplemented Prospectus and/or amended Registration Statement contemplated by Section 3(j), or until it is advised in writing (the "Advice") by the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement.

(n)

If (i) there is material non-public information regarding the Company which the Company's Board of Directors (the "Board") determines not to be in the Company's best interest to disclose and which the Company is not otherwise required to disclose, (ii) there is a significant business opportunity (including, but not limited to, the acquisition or disposition of assets (other than in the ordinary course of business) or any merger, consolidation, tender offer or other similar transaction) available to the Company which the Board determines not to be in the Company's best interest to disclose, or (iii) the Company is required to file a post-effective amendment to the Registration Statement to incorporate the Company’s quarterly and annual reports and audited financial statements on Forms 10-QSB and 10-KSB, then the Company may (x) postpone or suspend filing of a registration statement for a period not to exceed thirty (30) consecutive days or (y) postpone or suspend effectiveness of a registration statement for a period not to exceed twenty (20) consecutive days; provided that the Company may not postpone or suspend effectiveness of a registration statement under this Section 3(n) for more than forty-five (45) days in the aggregate during any three hundred sixty (360) day period; provided, however, that no such postponement or suspension shall be permitted for consecutive twenty (20) day periods arising out of the same set of facts, circumstances or transactions.

     4.

Registration Expenses.

All fees and expenses incident to the performance of or compliance with this Agreement by the Company, except as and to the extent specified in this Section 4, shall be borne by the Company whether or not the Registration Statement is filed or becomes effective and whether or not any Registrable Securities are sold pursuant to the Registration Statement.  The fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with the OTC Bulletin Board and/or each other securities exchange or market on which Registrable Securities are required hereunder to be quoted or listed, if any (B) with respect to filing fees required to be paid to the National 

-6-

Association of Securities Dealers, Inc. and the NASD Regulation, Inc. and (C) in compliance with state securities or Blue Sky laws (including, without limitation, fees and disbursements of counsel for the Holders in connection with Blue Sky qualifications of the Registrable Securities and determination of the eligibility of the Registrable Securities for investment under the laws of such jurisdictions as the Holders of a majority of Registrable Securities may designate)), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing of prospectuses is requested by the holders of a majority of the Registrable Securities included in the Registration Statement), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company and Special Counsel for the Holders, in the case of the Special Counsel, up to a maximum amount of $7,500, (v) Securities Act liability insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement, including, without limitation, the Company's independent public accountants (including the expenses of any comfort letters or costs associated with the delivery by independent public accountants of a comfort letter or comfort letters).  In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit, the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder.  The Company shall not be responsible for any discounts, commissions, transfer taxes or other similar fees incurred by the Holders in connection with the sale of the Registrable Securities.

     5.

Indemnification.

(a)

Indemnification by the Company.  The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder, the officers, directors, managers, partners, members, shareholders, agents, brokers, investment advisors and employees of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, agents and employees of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, costs of preparation and attorneys' fees) and expenses (collectively, "Losses"), as incurred, arising out of or relating to any violation of securities laws or untrue or alleged untrue statement of a material fact contained in the Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in the light of the circumstances under which they were made) not misleading, except to the extent, but only to the extent, that such untrue statements or omissions are based solely upon information regarding such Holder or such other Indemnified Party furnished in writing to the Company by such Holder expressly for use therein.  The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding of which the Company is aware in connection with the transactions contemplated by this Agreement.

(b)

Indemnification by Holders.  Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents and employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses (as determined by a court of competent jurisdiction in a final judgment not subject to appeal or review), as incurred, arising solely out of or based solely upon any untrue statement of a material fact contained in the Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto, or arising solely out of or based solely upon any omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in the light of the circumstances under which they were made) not misleading, to the extent, but only to the extent, that such untrue statement or omission is contained in any information so furnished in writing by such Holder or other Indemnifying Party to the Company specifically for inclusion in the Registration Statement or such Prospectus.  Notwithstanding anything to the contrary contained herein, each Holder 

-7-

shall be liable under this Section 5(b) for only that amount as does not exceed the net proceeds to such Holder as a result of the sale of Registrable Securities pursuant to such Registration Statement.

(c)

Conduct of Indemnification Proceedings.  If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an "Indemnified Party"), such Indemnified Party promptly shall notify the Person from whom indemnity is sought (the "Indemnifying Party) in writing, and the Indemnifying Party shall be entitled to assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have proximately and materially adversely prejudiced the Indemnifying Party.

An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing to pay such fees and expenses; or (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such parties shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Party).  The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld or delayed.  No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which any Indemnified Party is a party and indemnity has been sought hereunder, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

     All fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within ten (10) Business Days of written notice thereof to the Indemnifying Party (regardless of whether it is ultimately determined that an Indemnified Party is not entitled to indemnification hereunder; provided, that the Indemnified Party shall reimburse all such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not entitled to indemnification hereunder).

(d)

Contribution. If a claim for indemnification under Section 5(a) or 5(b) is due but unavailable to an Indemnified Party because of a failure or refusal of a governmental authority to enforce such indemnification in accordance with its terms (by reason of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative benefits received by the Indemnifying Party on the one hand and the Indemnified Party on the other from the offering of the Common Stock and Warrant.  If, but only if, the allocation provided by the foregoing sentence is not permitted by applicable law, the allocation of contribution shall be made in such proportion as is appropriate to reflect not only the relative benefits referred to in the foregoing sentence but also the relative fault, as applicable, of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations.  The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties' relative intent, knowledge, access to information and opportunity to correct or 

-8-

prevent such action, statement or omission.  The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in Section 5(c), any reasonable attorneys' or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to such party in accordance with its terms.  In no event shall any selling Holder be required to contribute an amount under this Section 5(d) in excess of the net proceeds received by such Holder upon sale of such Holder’s Registrable Securities pursuant to the Registration Statement giving rise to such contribution obligation.

     The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph.  No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

     The indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties pursuant to the law.

6.

Rule 144.

     As long as any Holder owns Warrant or Registrable Securities, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to Section 13(a) or 15(d) of the Exchange Act.  As long as any Holder owns Warrant or Registrable Securities, if the Company is not required to file reports pursuant to Section 13(a) or 15(d) of the Exchange Act, it will prepare and furnish to the Holders and make publicly available in accordance with Rule 144(c) promulgated under the Securities Act annual and quarterly financial statements, together with a discussion and analysis of such financial statements in form and substance substantially similar to those that would otherwise be required to be included in reports required by Section 13(a) or 15(d) of the Exchange Act, as well as any other information required thereby, in the time period that such filings would have been required to have been made under the Exchange Act.  The Company further covenants that it will take such further action as any Holder may reasonably request, all to the extent required from time to time to enable such Person to sell Warrant Shares without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 promulgated under the Securities Act, including providing any legal opinions relating to such sale pursuant to Rule 144.  Upon the request of any Holder, the Company shall deliver to such Holder a written certification of a duly authorized officer as to whether it has complied with such requirements.

7.

Miscellaneous.

(a)

Remedies.  In the event of a breach by the Company or by a Holder, of any of their obligations under this Agreement, such Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, will be entitled to specific performance of its rights under this Agreement.  The Company and each Holder agree that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance in respect of such breach, it shall waive the defense that a remedy at law would be adequate.

(b)

Intentionally Omitted.

(c)

Intentionally Omitted.

(d)

Piggy-Back Registrations.  If at any time when there is not an effective Registration Statement covering Warrant Shares, the Company shall determine to prepare and file with the Commission a registration statement relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities, other than on Form S-4 or Form S-8 (each 

-9-

as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with stock option or other employee benefit plans, the Company shall send to each holder of Registrable Securities written notice of such determination and, if within thirty (30) days after receipt of such notice, or within such shorter period of time as may be specified by the Company in such written notice as may be necessary for the Company to comply with its obligations with respect to the timing of the filing of such registration statement, any such holder shall so request in writing, (which request shall specify the Registrable Securities intended to be disposed of by the Purchasers), the Company will cause the registration under the Securities Act of all Registrable Securities which the Company has been so requested to register by the holder, to the extent requisite to permit the disposition of the Registrable Securities so to be registered, provided that if at any time after giving written notice of its intention to register any securities and prior to the effective date of the registration statement filed in connection with such registration, the Company shall determine for any reason not to register or to delay registration of such securities, the Company may, at its election, give written notice of such determination to such holder and, thereupon, (i) in the case of a determination not to register, shall be relieved of its obligation to register any Registrable Securities in connection with such registration (but not from its obligation to pay expenses in accordance with Section 4 hereof), and (ii) in the case of a determination to delay registering, shall be permitted to delay registering any Registrable Securities being registered pursuant to this Section 7(d) for the same period as the delay in registering such other securities. The Company shall include in such registration statement all or any part of such Registrable Securities such holder requests to be registered; provided, however, that the Company shall not be required to register any Registrable Securities pursuant to this Section 7(d) that are eligible for sale pursuant to Rule 144(k) of the Securities Act.  In the case of an underwritten public offering, if the managing underwriter(s) or underwriter(s) should reasonably object to the inclusion of the Registrable Securities in such registration statement, then if the Company after consultation with the managing underwriter should reasonably determine that the inclusion of such Registrable Securities would materially adversely affect the offering contemplated in such registration statement, and based on such determination recommends inclusion in such registration statement of fewer or none of the Registrable Securities of the Holders, then (x) the number of Registrable Securities of the Holders included in such registration statement shall be reduced pro-rata among such Holders (based upon the number of Registrable Securities requested to be included in the registration), if the Company after consultation with the underwriter(s) recommends the inclusion of fewer Registrable Securities, or (y) none of the Registrable Securities of the Holders shall be included in such registration statement, if the Company after consultation with the underwriter(s) recommends the inclusion of none of such Registrable Securities; provided, however, that if securities are being offered for the account of other persons or entities as well as the Company, such reduction shall not represent a greater fraction of the number of Registrable securities intended to be offered by the Holders than the fraction of similar reductions imposed on such other persons or entities (other than the Company).

(e)

Failure to File Registration Statement and Other Events.  The Company and the Purchasers agree that the Holders will suffer damages if the Registration Statement is not filed on or prior to the Filing Date and not declared effective by the Commission on or prior to the Effectiveness Date and maintained in the manner contemplated herein during the Effectiveness Period or if certain other events occur.  The Company and the Holders further agree that it would not be feasible to ascertain the extent of such damages with precision.  Accordingly, if (A) the Registration Statement is not filed on or prior to the Filing Date, or (B) the Registration Statement is not declared effective by the Commission on or prior to the Effectiveness Date, or (C) the Company fails to file with the Commission a request for acceleration in accordance with Rule 461 promulgated under the Securities Act within three (3) Business Days of the date that the Company is notified (orally or in writing, whichever is earlier) by the Commission that a Registration Statement will not be "reviewed," or not subject to further review, or (D) the Registration Statement is filed with and declared effective by the Commission but thereafter ceases to be effective as to all Registrable Securities at any time prior to the expiration of the Effectiveness Period, without being succeeded immediately by a subsequent Registration Statement filed with and declared effective by the Commission, or (E) the Company has breached Section 3(n), or (F) trading in the Common Stock shall be suspended or if the Common Stock is no longer quoted on or delisted from the OTC Bulletin Board (or other principal exchange on which the Common Stock is traded) for any reason for more than three (3) Business Days in the aggregate (any such failure or breach being referred to as an "Event," and for purposes of clauses (A) and (B) the date on which such Event occurs, or for purposes of clause (C) the 

-10-

date on which such three (3) Business Day period is exceeded, or for purposes of clause (D) after more than fifteen (15) Business Days, or for purposes of clause (F) the date on which such three (3) Business Day period is exceeded, being referred to as "Event Date"), the Company shall pay an amount in cash as liquidated damages to each Holder equal to one percent (1%) of the amount of the Holder’s initial investment in the Common Stock for each calendar month or portion thereof thereafter from the Event Date until the applicable Event is cured; provided, however, that in no event shall the amount of liquidated damages payable at any time and from time to time to any Holder pursuant to this Section 7(e) exceed an aggregate of ten percent (10%) of the amount of the Holder’s initial investment in the Common Stock.  Notwithstanding anything to the contrary in this paragraph (e), if (a) any of the Events described in clauses (A), (B), (C), (D) or (F) shall have occurred, (b) on or prior to the applicable Event Date, the Company shall have exercised its rights under Section 3(n) hereof and (c) the postponement or suspension permitted pursuant to such Section 3(n) shall remain effective as of such applicable Event Date, then the applicable Event Date shall be deemed instead to occur on the second Business Day following the termination of such postponement or suspension.  Liquidated damages payable by the Company pursuant to this Section 7(d) shall be payable on the first (1st) Business Day of each thirty (30) day period following the Event Date.  Notwithstanding anything to the contrary contained herein, in no event shall any liquidated damages be payable with respect to the Warrant or the Warrant Shares.

(f)

Amendments and Waivers.  The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed by the Company and the Holders of seventy-five percent (75%) of the Registrable Securities outstanding.  

(g)

Notices.  Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and shall be effective (a) upon hand delivery, telecopy or facsimile at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.  The addresses for such communications shall be:

		
	If to the Company:

	Moventis Capital, Inc.

Attention: Blake Ponuick, President and CEO

Tel. No.: (604) 535-3900

Fax No.: (604) 608-4859

		
	with copies (which shall not constitute notice) to:

	Perkins Coie, LLP

1620 26th Street, Sixth Floor, South Tower

Santa Monica, CA 90404

Attention: David J. Katz, Esq.

Tel. No.: (310) 788-3268 

Fax No.: (310) 843-1254

-11-

		
	If to any Purchaser:

	At the address of such Purchaser set forth on Exhibit A to this Agreement, with copies to Purchaser’s counsel as set forth on Exhibit A or as specified in writing by such:

		
	with copies (which shall not constitute notice) to:

	Kramer Levin Naftalis & Frankel LLP

1177 Avenue of the Americas

New York, New York 10036

Attention: Christopher S. Auguste

Tel No.: (212) 715-9100

Fax No.: (212) 715-8000

Any party hereto may from time to time change its address for notices by giving at least ten (10) days written notice of such changed address to the other party hereto.

(h)

Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns and shall inure to the benefit of each Holder and its successors and assigns.  The Company may not assign this Agreement or any of its rights or obligations hereunder without the prior written consent of each Holder.  Each Purchaser may assign its rights hereunder in the manner and to the Persons as permitted under the Warrant.

(i)

Assignment of Registration Rights.  The rights of each Holder hereunder, including the right to have the Company register for resale Registrable Securities in accordance with the terms of this Agreement, shall be automatically assignable by each Holder to any Person of all or a portion of the Registrable Securities if: (i) the Holder agrees in writing with the transferee or assignee to assign such rights, and a copy of such agreement is furnished to the Company within a reasonable time after such assignment, (ii) the Company is, within a reasonable time after such transfer or assignment, furnished with written notice of (a) the name and address of such transferee or assignee, and (b) the securities with respect to which such registration rights are being transferred or assigned, (iii) following such transfer or assignment the further disposition of such securities by the transferee or assignees is restricted under the Securities Act and applicable state securities laws, (iv) at or before the time the Company receives the written notice contemplated by clause (ii) of this Section, the transferee or assignee agrees in writing with the Company to be bound by all of the provisions of this Agreement, and (v) such transfer shall have been made in accordance with the applicable requirements of the Warrant.  The rights to assignment shall apply to the Holders (and to subsequent) successors and assigns.  

(j)

Counterparts.  This Agreement may be executed in any number of 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 and shall become effective when counterparts have been signed by each party and delivered to the other parties hereto, it being understood that all parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof.

(k)

Governing Law; Jurisdiction.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another jurisdiction.  This Agreement shall not be interpreted or construed with any presumption against the party causing this Agreement to be drafted.  The Company and the Holders agree that venue for any dispute arising under this Agreement will lie exclusively in the state or federal courts located in New York County, New York, and the parties irrevocably waive any right to raise forum non conveniens or any other argument that New York is not the proper venue.  The Company and the Holders irrevocably consent to 

-12-

personal jurisdiction in the state and federal courts of the state of New York.  The Company and the Holders consent to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing in this Section 7(k) shall affect or limit any right to serve process in any other manner permitted by law.  The Company and the Holders hereby agree that the prevailing party in any suit, action or proceeding arising out of or relating to this Agreement or the Warrant, shall be entitled to reimbursement for reasonable legal fees from the non-prevailing party.  The parties hereby waive all rights to a trial by jury.

(l)

Cumulative Remedies.  The remedies provided herein are cumulative and not exclusive of any remedies provided by law.

(m)

Severability. If any term, provision, covenant or restriction of this Agreement is held to be invalid, illegal, void or unenforceable in any respect, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction.  It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

(n)

Headings.  The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

(o)

Shares Held by the Company and its Affiliates. Whenever the consent or approval of Holders of a specified percentage of Registrable Securities is required hereunder, Registrable Securities held by the Company or its Affiliates (other than any Holder or transferees or successors or assigns thereof if such Holder is deemed to be an Affiliate solely by reason of its holdings of such Registrable Securities) shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage.

(p)

Independent Nature of Purchasers.  The Company acknowledges that the obligations of each Purchaser under the Transaction Documents are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under the Transaction Documents.  The Company acknowledges that the decision of each Purchaser to purchase Securities pursuant to the Warrant has been made by such Purchaser independently of any other Purchaser and independently of any information, materials, statements or opinions as to the business, affairs, operations, assets, properties, liabilities, results of operations, condition (financial or otherwise) or prospects of the Company or of its Subsidiaries which may have made or given by any other Purchaser or by any agent or employee of any other Purchaser, and no Purchaser or any of its agents or employees shall have any liability to any Purchaser (or any other person) relating to or arising from any such information, materials, statements or opinions.  The Company acknowledges that nothing contained herein, or in any Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto (including, but not limited to, the (i) inclusion of a Purchaser in the Registration Statement and (ii) review by, and consent to, such Registration Statement by a Purchaser) shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents.  The Company acknowledges that each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose.  The Company acknowledges that for reasons of administrative convenience only, the Transaction Documents have been prepared by counsel for one of the Purchasers and such counsel does not represent all of the Purchasers.  The Company acknowledges that it has elected to provide all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do so by the Purchasers.  The Company acknowledges that such procedure with respect 

-13-

to the Transaction Documents in no way creates a presumption that the Purchasers are in any way acting in concert or as a group with respect to the Transaction Documents or the transactions contemplated hereby or thereby.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

-14-

IN WITNESS WHEREOF, the parties hereto have caused this Registration Rights Agreement to be duly executed by their respective authorized persons as of the date first indicated above.

MOVENTIS CAPITAL, INC. 

By:_____________________________________

      Name: Blake Ponuick

          Title:  President and CEO

 

PURCHASER:

 

By:_____________________________________

      Name: 

      

         Title:

 

Schedule I

Purchasers

Names and Addresses

Investment Amount, Number of Shares

Purchasers

& Warrant Purchased

Vision Opportunity Master Fund, Ltd.

Investment Amount: $500,000

20 W 55th St., 5th floor 

Warrant Shares: 2,000,000

New York, NY 10019

-16-

Exhibit A

Plan of Distribution

The selling security holders and any of their pledgees, donees, assignees and successors-in-interest may, from time to time, sell any or all of their shares of common stock being offered under this prospectus on any stock exchange, market or trading facility on which shares of our common stock are traded or in private transactions.  These sales may be at fixed or negotiated prices.  The selling security holders may use any one or more of the following methods when disposing of shares:

·

ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

·

block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;

·

purchases by a broker-dealer as principal and resales by the broker-dealer for its account;

·

an exchange distribution in accordance with the rules of the applicable exchange;

·

privately negotiated transactions;

·

to cover short sales made after the date that the registration statement of which this prospectus is a part is declared effective by the Commission;

·

broker-dealers may agree with the selling security holders to sell a specified number of such shares at a stipulated price per share;

·

a combination of any of these methods of sale; and

·

any other method permitted pursuant to applicable law.

The shares may also be sold under Rule 144 under the Securities Act of 1933, as amended (“Securities Act”), if available, rather than under this prospectus.  The selling security holders have the sole and absolute discretion not to accept any purchase offer or make any sale of shares if they deem the purchase price to be unsatisfactory at any particular time.

The selling security holders may pledge their shares to their brokers under the margin provisions of customer agreements.  If a selling security holder defaults on a margin loan, the broker may, from time to time, offer and sell the pledged shares.

Broker-dealers engaged by the selling security holders may arrange for other broker-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling security holders (or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser) in amounts to be negotiated, which commissions as to a particular broker or dealer may be in excess of customary commissions to the extent permitted by applicable law.

If sales of shares offered under this prospectus are made to broker-dealers as principals, we would be required to file a post-effective amendment to the registration statement of which this prospectus is a part.  In the post-effective amendment, we would be required to disclose the names of any participating broker-dealers and the compensation arrangements relating to such sales.

The selling security holders and any broker-dealers or agents that are involved in selling the shares offered under this prospectus may be deemed to be “underwriters” within the meaning of the Securities Act in connection with these sales.  Commissions received by these broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act.  Any broker-dealers or agents that are deemed to be underwriters may not sell shares offered under this prospectus unless and until we set forth the names of 

-17-

the underwriters and the material details of their underwriting arrangements in a supplement to this prospectus or, if required, in a replacement prospectus included in a post-effective amendment to the registration statement of which this prospectus is a part.

The selling security holders and any other persons participating in the sale or distribution of the shares offered under this prospectus will be subject to applicable provisions of the Exchange Act, and the rules and regulations under that act, including Regulation M.  These provisions may restrict activities of, and limit the timing of purchases and sales of any of the shares by, the selling security holders or any other person.  Furthermore, under Regulation M, persons engaged in a distribution of securities are prohibited from simultaneously engaging in market making and other activities with respect to those securities for a specified period of time prior to the commencement of such distributions, subject to specified exceptions or exemptions.  All of these limitations may affect the marketability of the shares.

If any of the shares of common stock offered for sale pursuant to this prospectus are transferred other than pursuant to a sale under this prospectus, then subsequent holders could not use this prospectus until a post-effective amendment or prospectus supplement is filed, naming such holders.  We offer no assurance as to whether any of the selling security holders will sell all or any portion of the shares offered under this prospectus.

We have agreed to pay all fees and expenses we incur incident to the registration of the shares being offered under this prospectus.  However, each selling security holder and purchaser is responsible for paying any discounts, commissions and similar selling expenses they incur.  

We and the selling security holders have agreed to indemnify one another against certain losses, damages and liabilities arising in connection with this prospectus, including liabilities under the Securities Act.

-18-Exhibit 4.1

                                                                                                                                                                                                                                                                                
      Exhibit 4.1

    
 

     

    Second
      Supplemental

     

    Indenture

     

    between

     

    Southern
      Union Company

     

    

     

    and

     

    

     

    The
      Bank of New York Trust Company, N.A., successor to JPMorgan Chase Bank, N.A.,
      formerly known as JPMorgan Chase Bank, 

    formerly
      known as The Chase Manhattan Bank (National Association), as
      Trustee

     

    

     

    

     

    Dated
      as of October 23, 2006

     

    

     

    

     

    2006
      Series A Junior Subordinated

     

    Notes
      Due November 1, 2066

    

    

    
      
        
          

          -NY12533:207075.9

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

     

    ARTICLE
      I

     

    DEFINITIONS

     

    SECTION
      1.1.    Definition
      of Terms

     

    ARTICLE
      II

     

    GENERAL
      TERMS AND CONDITIONS OF THE NOTES

     

    SECTION
      2.1.    Designation
      and Principal Amount

    SECTION
      2.2.    Maturity

    SECTION
      2.3.    Form
      and
      Payment

    SECTION
      2.4.    Exchange
      and Registration of Transfer of Notes; Restrictions on Transfers;
      Depositary

    SECTION
      2.5.    Interest

    SECTION
      2.6.    Event
      of
      Default

     

    ARTICLE
      III

     

    REDEMPTION
      OF THE NOTES

     

    SECTION
      3.1.    Special
      Event Redemption        

    SECTION
      3.2.    Optional
      Redemption by Company

    SECTION
      3.3.    Notice
      of
      Redemption

    SECTION
      3.4.    No
      Sinking Fund

     

    ARTICLE
      IV

     

    OPTION
      TO
      DEFER INTEREST PAYMENTS

     

    SECTION
      4.1.    Option
      to
      Defer Interest Payments

    SECTION
      4.2.    Notice
      of
      Deferral

     

    ARTICLE
      V

     

    EXPENSES

     

    SECTION
      5.1.    Payment
      of Expenses

    SECTION
      5.2.    Payment
      upon Resignation or Removal

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

    ARTICLE
      VI

     

    SUBORDINATION

     

    SECTION
      6.1.    Agreement
      to Subordinate

    SECTION
      6.2.    Default
      on Senior Indebtedness

    SECTION
      6.3.    Liquidation;
      Dissolution; Bankruptcy

    SECTION
      6.4.    Subrogation

    SECTION
      6.5.    Trustee
      to Effectuate Subordination

    SECTION
      6.6.    Notice
      by
      the Company

    SECTION
      6.7.    Rights
      of
      the Trustee; Holders of Senior Indebtedness

    SECTION
      6.8.    Subordination
      May Not Be Impaired

     

    ARTICLE
      VII

     

    FORM
      OF
      NOTE

     

    SECTION
      7.1.    Form
      of
      Note

     

    ARTICLE
      VIII

     

    ORIGINAL
      ISSUE OF NOTES

     

    SECTION
      8.1.    Original
      Issue of Notes

     

    ARTICLE
      IX

     

     MISCELLANEOUS

     

    SECTION
      9.1.    Ratification
      of Indenture; Second Supplemental Indenture Controls

    SECTION
      9.2.    Trustee
      Not Responsible for Recitals

    SECTION
      9.3.    Governing
      Law

    SECTION
      9.4.    Separability

    SECTION
      9.5.    Counterparts

    

    
      
        
          ii

          -NY12533:207075.9

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    SECOND
      SUPPLEMENTAL INDENTURE, dated as of October 23, 2006 (the “Second
      Supplemental Indenture”), between Southern Union Company, a Delaware corporation
      (the “Company”), and The Bank of New York Trust Company, N.A., successor to JP
      Morgan Chase Bank, N.A., formerly known as JPMorgan Chase Bank, formerly known
      as The Chase Manhattan Bank (National Association), as trustee (the “Trustee”)
      under the Indenture dated as of May 10, 1995, between the Company and the
      Trustee (the “Base Indenture” and, together with this Second Supplemental
      Indenture, the “Indenture”).

     

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

     

    WHEREAS,
      pursuant to the terms of the Base Indenture, the Company desires to provide
      for
      the establishment of a new series of its Securities to be known as its 7.20%
      2006 Series A Junior Subordinated Notes due 2066 (the “Notes”), the form
      and substance of such Notes and the terms, provisions and conditions thereof
      to
      be set forth as provided in the Base Indenture and this Second Supplemental
      Indenture; 

     

    WHEREAS,
      the Company desires that this series of Notes be duly issued on October 23,
      2006, pursuant to the Indenture and sold pursuant to the Underwriting Agreement
      (as defined below);

     

    WHEREAS,
      the Company has offered to the purchasers (the “Underwriters”) named in
      Schedule I to the Underwriting Agreement, dated October 18, 2006 (the
“Underwriting Agreement”), between the Underwriters and the Company $600,000,000
      aggregate principal amount of its Notes; and

     

    WHEREAS,
      the Company has requested that the Trustee execute and deliver this Second
      Supplemental Indenture, all requirements necessary to make this Second
      Supplemental Indenture a valid instrument in accordance with its terms and
      to
      make the Notes, when executed by the Company and authenticated and delivered
      by
      the Trustee, the valid obligations of the Company have been satisfied, and
      the
      execution and delivery of this Second Supplemental Indenture has been duly
      authorized in all respects:

     

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

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      I

      

    DEFINITIONS

     

    SECTION
      1.1.   Definition
      of Terms. Unless
      the context otherwise requires:

     

    (a)  a
      term
      defined in the Base Indenture has the same meaning when used in this Second
      Supplemental Indenture;

     

    (b)  a
      term
      defined anywhere in this Second Supplemental Indenture has the same meaning
      throughout this Second Supplemental Indenture;

     

    (c)  the
      singular includes the plural and vice versa;

     

    (d)  a
      reference to a Section or Article is to a Section or Article of this
      Second Supplemental Indenture;

     

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

     

    (f)  terms
      used herein that are defined in the Trust Indenture Act, whether directly or
      by
      reference therein, have the meanings assigned to them therein; 

     

    (g)  the
      words
“herein,” “hereof” and “hereunder” and other words of similar import refer to
      this Second Supplemental Indenture as a whole and not to any particular Article,
      

               
      Section or other subdivision; and

     

    (h)  the
      following terms have the meanings given to them in this
      Section 1.1(h):

     

    “Additional
      Interest” has the meaning specified in Section 2.5(a).

     

    “Calculation
      Agent” means The Bank of New York Trust Company, N.A., or its successor
      appointed by the Company, acting as calculation agent.

     

    “Change
      of Control” has the meaning specified in the definition of Change of Control
      Event.

     

    “Change
      of Control Event” means the earliest date on which both of the following events
      have occurred: (i) any person or persons acting in concert or on behalf of
      any person(s) is or becomes the beneficial owner, directly or indirectly, of
      more than 50% of the capital stock of the Company then outstanding and normally
      entitled (without regard to the occurrence of any contingency) to vote in the
      election of directors (whether or not any necessary approvals therefore have
      been obtained) (a “Change of Control”); and (ii) within 90 days after
      public notice of the occurrence of a Change of Control (which period will be
      extended so long as any rating is under publicly announced consideration of
      possible downgrade by any of the Rating Agencies), any Rating Agency publicly
      announces that in connection with, in anticipation of or as a result of, a
      Change of Control occurring, the corporate credit rating of 

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    the
      Company by such Rating Agency is withdrawn or downgraded to a rating of or
      below
      BBB- by S&P, Ba1 by Moody’s or BBB- by Fitch.

     

    “Comparable
      Treasury Issue” means, with respect to any redemption date, the United States
      Treasury security selected by the Quotation Agent as having a maturity
      comparable to the time period from the redemption date to November 1, 2011
      that
      would be utilized, at the time of selection and in accordance with customary
      financial practice, in pricing new issues of corporate debt securities with
      a
      term to maturity comparable to such time period. If no United States Treasury
      security has a maturity which is within a period from three months before to
      three months after November 1, 2011, the two most closely corresponding United
      States Treasury securities shall be used as the Comparable Treasury Issue,
      and
      the Treasury Rate shall be interpolated or extrapolated on a straight-line
      basis, rounding to the nearest month using such securities.

     

    “Comparable
      Treasury Price” means, with respect to any redemption date, (i) the
      average, after excluding the highest and lowest such Reference Treasury Dealer
      Quotations, of up to five Reference Treasury Dealer Quotations for such
      redemption date, or (ii) if the Quotation Agent obtains fewer than five
      such Reference Treasury Dealer Quotations, the average of all such
      Quotations.

     

    “Coupon
      Rate” has the meaning specified in Section 2.5(a).

     

    “Definitive
      Note Certificates” means Notes issued in definitive, fully registered
      form.

     

    “Exchange
      Act” means the Securities Exchange Act of 1934, as amended.

     

    “Fitch”
      means Fitch Ratings Ltd., and any successor to its rating agency
      business.

     

    “Fixed
      Coupon Rate” has the meaning specified in Section 2.5(a).

     

    “Fixed
      Rate Period” has the meaning specified in Section 2.5(a).

     

    “Floating
      Coupon Rate” has the meaning specified in Section 2.5(a).

     

    “Floating
      Rate Period” has the meaning specified in Section 2.5(a).

     

    “Global
      Note” has the meaning specified in Section 2.4(a).

     

    “Inapplicable
      Covenants” has the meaning specified in Section 2.7.

     

    “Interest
      Payment Date” has the meaning specified in Section 2.5(a).

     

    “LIBOR
      Business Day” means any Business Day on which dealings in deposits in U.S.
      Dollars are transacted in the London Inter-Bank Market.

     

    “LIBOR
      Interest Determination Date” means the second LIBOR Business Day preceding each
      LIBOR Rate Reset Date.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    “LIBOR
      Rate Reset Date” means, subject to Section 2.5(b), the 1st day of the months of
      February, May, August and November of each year commencing on November 1,
      2011.

     

    “Make-Whole
      Amount” means an amount equal to the greater of (i) 100% of the principal
      amount of the Notes or (ii) as determined by a Quotation Agent as of the
      redemption date, the sum of the present value of each scheduled payment of
      interest on the Notes from the redemption date to November 1, 2011 and the
      present value of the principal amount of the Notes assuming, solely for purposes
      of this calculation, a scheduled payment of such principal on November 1, 2011,
      discounted to the redemption date on a semi-annual basis (assuming a 360-day
      year consisting of twelve 30-day months) at a discount rate equal to the
      Treasury Rate plus 50 basis points.

     

    “Moody’s”
      means Moody’s Investor Service, Inc., and any successor to its rating agency
      business. 

     

    “Notes”
      has the meaning specified in the second recital to this Second Supplemental
      Indenture.

     

    “Optional
      Deferral Period” has the meaning specified in Section 4.1(a).

     

    “Optional
      Redemption Price” has the meaning specified in Section 3.2.

     

    “Primary
      Treasury Dealer” has the meaning specified in the definition of Quotation
      Agent.

     

    “Quotation
      Agent” means one of Credit Suisse Securities (USA) LLC, Goldman, Sachs &
Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Lehman Brothers
      Inc., and their respective successors as selected by the Company; provided,
      however, that if all of these firms cease to be a primary United States
      Government securities dealer in New York City (a “Primary Treasury Dealer”), the
      Company shall substitute another Primary Treasury Dealer as Quotation
      Agent.

     

    “Rating
      Agency” means any of the Rating Agencies.

     

    “Rating
      Agencies” means Moody’s, S&P and Fitch. 

     

    “Record
      Date” has the meaning specified in Section 2.5(a).

     

    “Reference
      Treasury Dealer” means (i) Credit Suisse Securities (USA) LLC, Goldman,
      Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Lehman
      Brothers Inc. and their respective successors; provided, however, that if any
      of
      these firms shall cease to be a Primary Treasury Dealer, the Company shall
      substitute another Primary Treasury Dealer for that firm; and (ii) up to
      two other Primary Treasury Dealers selected by the Company.

     

    “Reference
      Treasury Dealer Quotations” means, with respect to each Reference Treasury
      Dealer and any redemption date, the average, as determined by the Quotation
      Agent, of the bid and asked prices for the Comparable Treasury 

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    Issue
      (expressed in each case as a percentage of its principal amount) quoted in
      writing to the Quotation Agent by such Reference Treasury Dealer at 5:00 p.m.,
      New York City time, on the third Business Day preceding such redemption
      date.

     

    “S&P”
      means Standard & Poor’s, a division of McGraw Hill Companies, Inc., and any
      successor to its rating agency business.

     

    “Senior
      Indebtedness” means with respect to the Company, (i) the principal,
      premium, if any, and interest in respect of (A) indebtedness of such
      obligor for money borrowed and (B) indebtedness evidenced by securities,
      debentures, bonds or other similar instruments issued by such obligor,
      including, without limitation, all obligations under its 7.60% Senior Notes
      due
      2024, 8.25% Senior Notes due 2029, 2.75% Senior Notes due 2006, Term Notes
      due
      2005, First Mortgage Bonds due 2006 to 2029 and 4.375% Senior Notes due 2008;
      (ii) all capital, synthetic or financial lease obligations of such obligor;
      (iii) all obligations of such obligor issued or assumed as the deferred
      purchase price of property, all conditional sale obligations of such obligor
      and
      all obligations of such obligor under any title retention agreement (but
      excluding trade accounts payable arising in the ordinary course of business);
      (iv) all obligations of such obligor for the reimbursement on any letter of
      credit, banker’s acceptance, security purchase facility or similar credit
      transaction; (v) any other indebtedness or obligations of such obligor with
      respect to derivative contracts, including commodity contracts, interest rate,
      commodity and currency swap agreements, forward contracts and other similar
      agreements or arrangements; (vi) all obligations of the type referred to in
      clauses (i) through (v) of other persons for the payment of which such
      obligor is responsible or liable as obligor, guarantor or otherwise; and
      (vii) all obligations of the type referred to in clauses (i) through
      (vi) of other persons secured by any lien on any property or asset of such
      obligor (whether or not such obligation is assumed by such obligor), except
      for
      (A) any such indebtedness that is by its terms subordinated to or pari
      passu with the Notes, as the case may be, and (B) any indebtedness between
      or among any obligor and its Affiliates.

     

    “Special
      Event” means either a Tax Event or a Change of Control Event.

     

    “Special
      Event Redemption Price” means the Make-Whole Amount.

     

    “Stated
      Maturity” has the meaning specified in Section 2.2.

     

    “Tax
      Event” means the receipt by the Company of an opinion of independent tax counsel
      experienced in such matters (“Tax Event Opinion”), to the effect that, as a
      result of (i) any amendment to, change in or announced prospective change
      in the laws (or any regulations thereunder) of the United States or any
      political subdivision or taxing authority thereof or therein, or (ii) any
      official administrative written decision, pronouncement or action, or judicial
      decision interpreting or applying such laws or regulations, which amendment
      or
      change is effective or which proposed change, pronouncement, decision or action
      is announced on or after the date of original issuance of the Notes, there
      is
      more than an insubstantial risk that interest payable by the Company on the
      Notes is not or within 90 days of the date of such opinion, will not be
      deductible, in whole or in part, by the Company for United States federal income
      tax purposes.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    “Tax
      Event Opinion” has the meaning specified in the definition of Tax
      Event.

     

    “Telerate
      Page 3750” means the display designated as “Telerate page 3750” on Moneyline
      Telerate, Inc. (or such other page as may replace “Telerate page 3750” on such
      service) or such other service displaying the London Inter-Bank offered rates
      of
      major banks, as may replace Moneyline Telerate, Inc.

     

    “Three-Month
      LIBOR Rate” means the rate determined in accordance with the following
      provisions: 

     

    (1) On
      the LIBOR Interest Determination Date, the Calculation Agent or its affiliate
      will determine the Three-Month LIBOR Rate which shall be the rate for deposits
      in U.S. Dollars having a three-month maturity which appears on the Telerate
      Page
      3750 as of 11:00 a.m., London time, on the LIBOR Interest Determination Date.
      

     

    (2) If
      no rate appears on Telerate Page 3750 on the LIBOR Interest Determination Date,
      the Calculation Agent or its affiliate will request the principal London offices
      of four major reference banks in the London Inter-Bank Market, to provide it
      with their offered quotations for deposits in U.S. Dollars for the period of
      three months, commencing on the applicable LIBOR Rate Reset Date, to prime
      banks
      in the London Inter-Bank Market at approximately 11:00 a.m., London time, on
      that LIBOR Interest Determination Date and in a principal amount that is
      representative for a single transaction in U.S. Dollars in that market at that
      time. If at least two quotations are provided, then the Three-Month LIBOR Rate
      will be the average (rounded, if necessary, to the nearest one hundredth (0.01)
      of a percent) of those quotations. If fewer than two quotations are provided,
      then the Three-Month LIBOR Rate will be the average (rounded, if necessary,
      to
      the nearest one hundredth (0.01) of a percent) of the rates quoted at
      approximately 11:00 a.m., New York City time, on the LIBOR Interest
      Determination Date by three major banks in New York City selected by the
      Calculation Agent or its affiliate for loans in U.S. Dollars to leading European
      banks, having a three-month maturity and in a principal amount that is
      representative for a single transaction in U.S. Dollars in that market at that
      time. If the banks selected by the Calculation Agent or its affiliate are not
      providing quotations in the manner described by this paragraph, the rate for
      the
      quarterly interest period following the LIBOR Interest Determination Date will
      be the rate in effect on that LIBOR Interest Determination Date.

     

    “Treasury
      Rate” means (i) the yield, under the heading which represents the average for
      the immediately preceding week, appearing in the most recently published
      statistical release designated “H.15(519)” or any successor publication which is
      published weekly by the Federal Reserve and which establishes yields on actively
      traded United States Treasury securities adjusted to constant maturity under
      the
      caption “Treasury Constant Maturities,” for the maturity corresponding to the
      time period from the redemption date to November 1, 2011, (if no maturity is
      within three months before or after such time period, yields for the two
      published maturities most closely corresponding to such time period shall be
      determined by the Quotation Agent and the Treasury Rate shall be interpolated
      or
      extrapolated from such yields on a straight-line basis, rounding to the nearest
      month) or (ii) if such release (or any 

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    successor
      release) is not published during the week preceding the calculation date or
      does
      not contain such yields, the rate per annum equal to the semi-annual equivalent
      yield to maturity of the Comparable Treasury Issue, calculated using a price
      for
      the Comparable Treasury Issue (expressed as a percentage of its principal
      amount) equal to the Comparable Treasury Price for such redemption date. The
      Treasury Rate shall be calculated on the third Business Day preceding the
      redemption date.

     

    “Underwriters”
      has the meaning specified in the fourth recital to this Second Supplemental
      Indenture.

     

    “Underwriting
      Agreement” has the meaning specified in the fourth recital to this Second
      Supplemental Indenture.

     

    ARTICLE
      II  

     

    GENERAL
      TERMS AND CONDITIONS OF THE NOTES

     

    SECTION
      2.1.   Designation
      and Principal Amount. There
      is
      hereby authorized a series of Securities designated the “7.20% Series A
      Junior Subordinated Notes due 2066”, limited in aggregate principal amount to
      $600,000,000, which amount shall be as set forth in any written Company Order
      for the authentication and delivery of Notes pursuant to Section 301 of the
      Base Indenture and Section 8.1 of this Second Supplemental
      Indenture.

     

    SECTION
      2.2.   Maturity.
      The
      Stated Maturity will be November 1, 2066, which may not be shortened or
      extended.

     

    SECTION
      2.3.   Form
      and Payment. Except
      as
      provided in Section 2.4, the Notes shall be issued as Registered Securities
      in fully registered certificated form without interest coupons in minimum
      denominations of $1,000 and integral multiples of $1,000. Principal and interest
      on the Notes issued in certificated form will be payable, the transfer of such
      Notes will be registrable and such Notes will be exchangeable for Notes bearing
      identical terms and provisions at the office or agency of the Trustee; provided,
      however, that payment of interest may be made at the option of the Company
      by
      check mailed to the Holder at such address as shall appear in the Security
      Register.

     

    SECTION
      2.4.   Exchange
      and Registration of Transfer of Notes; Restrictions on Transfers; Common
      Depositary.
      The
      Notes will be issued to the holders in accordance with the following
      procedures:

     

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

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (b)  The
      transfer and exchange of beneficial interests in Global Notes shall be effected
      through the Common Depositary in accordance with the Base Indenture and the
      procedures and standing instructions of the Common Depositary, and the Trustee
      shall make appropriate endorsements to reflect increases or decreases in
      principal amounts of such Global Notes. 

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

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

     

    SECTION
      2.5.   Interest.

     

    (a)  Each
      Note
      will bear interest at (i) the rate of 7.20% per annum (the “Fixed Coupon
      Rate”) until November 1, 2011 (the “Fixed Rate Period”), and (ii) the
      Three-Month LIBOR Rate plus 3.0175% per annum, reset quarterly on the LIBOR
      Rate
      Reset Dates (the “Floating Coupon Rate” and, together with the Fixed Coupon
      Rate, the “Coupon Rate”), from November 1, 2011 up to, but not including, the
      Stated Maturity (the “Floating Rate Period”), and will bear interest on any
      overdue principal at the then prevailing Coupon Rate and (to the extent that
      payment of such interest is enforceable under applicable law) on any overdue
      installment of interest at the then prevailing Coupon Rate (“Additional
      Interest”), compounded semi-annually for the Fixed Rate Period and quarterly for
      the Floating Rate Period, payable (subject to the provisions of Article IV)
      semi-annually in arrears on the 1st day of May and November of each year during
      the Fixed Rate Period and quarterly in arrears on the 1st day of February,
      May,
      August and November of each year during the Floating Rate period (each, an
      “Interest Payment Date”), commencing on May 1, 2007 for the Fixed Rate Period
      and February 1, 2012 for the Floating Rate Period) to the Person in whose name
      such Note is registered, subject to certain exceptions, at the close of business
      on the Record Date next preceding such Interest Payment Date. The “Record Date”
for payment of interest will be the Business Day next preceding the Interest
      Payment Date, unless such Note is registered to a holder other than the Common
      Depositary or a nominee of the Depositary, in which case the Record Date for
      payment of interest will be the fifteenth calendar day preceding the applicable
      Interest Payment Date, whether or not a Business Day.

     

    (b)  During
      the Fixed Rate Period, the amount of interest payable for any period will be
      computed on the basis of a 360-day year of twelve 30-day months, and during
      the
      Floating Rate Period, the amount of interest payable for any period will be
      computed on the basis of the actual number of days in the relevant period
      divided by 360. During the Fixed Rate Period, if an Interest Payment Date,
      redemption date or the Stated Maturity of the Notes falls on a day that is
      not a
      Business Day, the payment of interest and principal will be made on the next
      succeeding Business Day, and no interest on such payment will accrue for the
      period from and after the Interest Payment Date, redemption date or the Stated
      Maturity, as the case may be. During the Floating Rate Period, if any Interest
      Payment Date, other than a redemption date or the Stated Maturity of the Notes,
      falls on a day that is not a Business Day, the Interest Payment Date will be
      postponed to the next day that is a Business Day, except that if that Business
      Day is in the next succeeding calendar month, the Interest Payment Date will
      be
      the immediately preceding Business Day. Also, if a redemption date or the Stated
      Maturity of the Notes falls on a day that is not a Business Day, the payment
      of
      interest and principal will be made on the next succeeding Business Day,
and no interest
      on such payment will accrue for the period from and after a redemption date
      or
      the Stated Maturity, as the case may be. During the Floating Rate Period, if
      any
      LIBOR Rate Reset Date falls on a day that is not a Business Day, the LIBOR
      Rate
      Reset Date will be postponed to the next day that is a Business Day, except
      that
      if that Business Day is in the next succeeding calendar month, the LIBOR Rate
      Reset Date will be the immediately preceding Business Day. During the Floating
      Rate Period, the interest rate in effect on any LIBOR Rate Reset Date will
      be
      the applicable rate as reset on that date and the interest rate applicable
      to
      any other day will be the interest rate as reset on the immediately preceding
      LIBOR Rate Reset Date.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    SECTION
      2.6.   Event
      of Default.  An
      Event of Default as defined in the Indenture shall be an Event of Default with
      respect to the Notes, provided that the nonpayment of interest for so long
      as
      and to the extent that interest is permitted to be deferred pursuant to
      Article IV herein shall not be deemed to be a default in the payment of
      interest for the purposes of Article V of the Base Indenture and shall not
      otherwise be deemed an Event of Default with respect to the Notes. For the
      avoidance of doubt, and without prejudice to any other remedies that may be
      available to the Trustee or the holders of the Notes, no breach by the Company
      of any covenant or obligation under the Indenture or the terms of the Notes
      shall be an Event of Default except those breaches that are specifically
      identified as an Event of Default under the Indenture.

     

    SECTION
      2.7.   Certain
      Covenants Do Not Apply to Notes.  The
      covenants set forth in Section 1009 and Section 1010 of the Base
      Indenture (the “Inapplicable Covenants”) do not apply to the Notes. Holders of
      the Notes may not require the Company to comply with the terms of the
      Inapplicable Covenants, and noncompliance by the Company with the terms of
      the
      Inapplicable Covenants shall not be deemed to be an Event of Default with
      respect to the Notes.

     

    ARTICLE
      III 

     

    REDEMPTION
      OF THE NOTES

     

    SECTION
      3.1.   Special
      Event Redemption.
      If a
      Special Event shall occur and be continuing, the Company may redeem the Notes
      within 90 days after the occurrence of that Special Event, in whole but not
      in
      part, before November 1, 2011, at the Special Event Redemption Price plus
      accrued and unpaid interest thereon, if any, to but excluding the redemption
      date. The Special Event Redemption Price shall be paid prior to 2:30 p.m.,
      New
      York City time, on the date of such redemption, provided that the Company shall
      deposit with the Trustee an amount sufficient to pay the Special Event
      Redemption Price by 11:00 a.m., New York City time, on the date such Special
      Event Redemption Price is to be paid. The Company will notify the Trustee of
      the
      amount of the Special Event Redemption Price promptly after the calculation
      thereof, and the Trustee will not be responsible for such
      calculation.

     

    SECTION
      3.2.   Optional
      Redemption by Company.
      Subject
      to the provisions of Article XI of the Base Indenture, except as otherwise
      may
      be specified in this Second Supplemental Indenture, the Company shall have
      the
      right to redeem the Notes, in whole or in part, from time to time, on or after
      November 1, 2011, at a redemption price equal to 100% of their principal amount
      (the “Optional Redemption Price”) plus accrued and unpaid interest thereon, if
      any, 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    to
      but
      excluding the redemption date. If the Notes are only partially redeemed pursuant
      to this Section 3.2, the Notes will be redeemed pro rata, by lot or by any
      other method utilized by the Trustee, provided that, if at the time of
      redemption the Notes are registered as a Global Note, the Common Depository
      shall determine by lot the principal amount of such Notes held by each Holder
      of
      Note to be redeemed. The Optional Redemption Price shall be paid prior to 2:30
      p.m., New York City time, on the date of such redemption provided that the
      Company shall deposit with the Trustee an amount sufficient to pay the Optional
      Redemption Price by 11:00 a.m., New York City time, on the date such
      Optional Redemption Price is to be paid.

     

    SECTION
      3.3.   Notice
      of Redemption.
      Subject
      to Article Eleven of the Base Indenture, notice of any redemption pursuant
      to
      this Section 3.3 will be mailed at least 20 days but not more than 60 days
      before the redemption date to each holder of Notes to be redeemed at such
      holder’s registered address. Unless the Company defaults in payment of the
      applicable redemption price, on and after the redemption date interest shall
      cease to accrue on such Notes called for redemption.

     

    SECTION
      3.4.   No
      Sinking Fund. The
      Notes
      are not entitled to the benefit of any sinking fund. 

     

    ARTICLE
      IV

     

    OPTION
      TO DEFER INTEREST PAYMENTS

     

    SECTION
      4.1.   Option
      to Defer Interest Payments. (a)
      At the
      Company’s option, it may, on one or more occasions, defer payment of all or part
      of the current and accrued interest otherwise due on the Notes for a period
      of
      up to 10 consecutive years (each period, commencing on the date that the first
      such interest payment would otherwise have been made, an “Optional Deferral
      Period”). A deferral of interest payments may not extend beyond the Stated
      Maturity of the Notes, and the Company may not begin a new Optional Deferral
      Period until it has paid all accrued interest on the Notes from the previous
      Optional Deferral Period.

     

    (b)  Any
      deferred interest on the Notes will accrue Additional Interest at a rate equal
      to the Coupon Rate then applicable to the Notes, to the extent permitted by
      applicable law. Once the Company pays all deferred interest payments on the
      Notes, including any Additional Interest accrued on the deferred interest,
      it
      shall be entitled to again defer interest payments on the Notes as described
      above, but not beyond the Stated Maturity of the Notes.

     

    (c)  Unless
      the Company has paid all accrued and payable interest on the Notes, it will
      not
      and its Subsidiaries shall not do any of the following:

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (i)  declare
      or pay any dividends or distributions, or redeem, purchase, acquire, or make
      a
      liquidation payment on any of the Company’s capital stock;

     

    (ii)  make
      any
      payment of principal of or interest or premium, if any, on or repay, repurchase
      or redeem any of its debt securities that rank on a parity with or junior in
      right of payment or upon liquidation to the Notes (including debt securities
      of
      other series issued under the Base Indenture); or

     

    (iii)  make
      any
      guarantee payments on any guarantee of debt securities if the guarantee ranks
      on
      a parity with or junior in right of payment or upon liquidation to the
      Notes.

     

    (d)  Notwithstanding
      clause (c) above, at any time, including during an Optional Deferral Period,
      the
      Company may:

     

    (i)  pay
      stock
      dividends or distributions in additional shares of its capital
      stock;

     

    (ii)  declare
      or pay a dividend in connection with the implementation of a shareholders’
rights plan, or issue stock under such a plan or repurchase such rights;
      and

     

    (iii)  purchase
      common stock for issuance pursuant to any employee benefit plans or dividend
      reinvestment and direct stock purchase plans.

     

    SECTION
      4.2.   Notice
      of Deferral.
      The
      Company shall give the Trustee written notice of any optional deferral of
      interest not more than 15 Business Days prior to the applicable Interest
      Payment Date. The Trustee shall forward such notice promptly to each holder
      of
      record of Notes.

     

    ARTICLE
      V

     

    EXPENSES

     

    SECTION
      5.1.   Payment
      of Expenses. In
      connection with the offering, sale and issuance of the Notes, the Company
      shall:

     

    (a)  pay
      for
      all costs and expenses relating to the offering, sale and issuance of the Notes,
      including commissions to the underwriters payable pursuant to the Underwriting
      Agreement and compensation of the Trustee under the Indenture in accordance
      with
      the provisions of Section 606 of the Base Indenture; and

     

    (b)  be
      primarily liable for any indemnification obligations arising with respect to
      the
      Underwriting Agreement.

     

    SECTION
      5.2.   Payment
      upon Resignation or Removal.
      Upon
      termination of this Second Supplemental Indenture or the Base Indenture or
      the
      removal or resignation of the Trustee pursuant to Section 608 of the Base
      Indenture, 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    the
      Company shall pay to the Trustee all amounts owed to it under Section 606
      of the Base Indenture accrued to the date of such termination, removal or
      resignation.

     

    ARTICLE
      VI 

     

    SUBORDINATION

     

    SECTION
      6.1.   Agreement
      to Subordinate. The
      Company covenants and agrees, and each Holder of Notes issued hereunder by
      such
      Holder’s acceptance thereof likewise covenants and agrees, that all Notes shall
      be issued subject to the provisions of this Article VI; and each Holder of
      a
      Note, whether upon original issue or upon transfer or assignment thereof,
      accepts and agrees to be bound by such provisions.

     

    The
      payment by the Company of the principal of, premium, if any, and interest on
      all
      Notes issued hereunder shall, to the extent and in the manner hereinafter set
      forth, be subordinated and junior in right of payment and upon liquidation
      to
      the prior payment in full of all Senior Indebtedness of the Company, whether
      outstanding at the date of this Second Supplemental Indenture or thereafter
      incurred. Nothing in this Article VI shall apply to claims of, or payments
      to,
      the Trustee under or pursuant to Section 606 or any other Section of this
      Indenture. 

     

    No
      provision of this Article VI shall prevent the occurrence of any default or
      Event of Default hereunder.

     

    SECTION
      6.2.   Default
      on Senior Indebtedness. In
      the
      event and during the continuation of any default by the Company in the payment
      of principal, premium, interest or any other payment due on any Senior
      Indebtedness of the Company, as the case may be, or in the event that the
      maturity of any Senior Indebtedness of the Company, as the case may be, has
      been
      accelerated because of a default, then, in either case, no payment shall be
      made
      by the Company with respect to the principal (including redemption and sinking
      fund payments) of, or premium, if any, or interest on the Notes.

     

    In
      the
      event that, notwithstanding the foregoing, any payment or distribution of any
      assets of the Company of any kind whatsoever shall be received by the Trustee
      when such payment is prohibited by the preceding paragraph of this
      Section 6.2 or of Section 6.3, such payment shall be held in trust for
      the benefit of, and shall be paid over or delivered to, the holders of Senior
      Indebtedness or their respective representatives, or to the trustee or trustees
      under any indenture pursuant to which any of such Senior Indebtedness may have
      been issued, as their respective interests may appear, for application to the
      payment of all Senior Indebtedness remaining unpaid until all such Senior
      Indebtedness shall have been paid in full, after giving effect to any concurrent
      payment or distribution (or provision therefor) to the holders of such Senior
      Indebtedness. 

     

    SECTION
      6.3.   Liquidation;
      Dissolution; Bankruptcy. Upon
      any
      payment by the Company or distribution of assets of the Company of any kind
      or
      character, whether in cash, property or securities, to creditors upon any

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    dissolution
      or winding-up or liquidation or reorganization of the Company, whether voluntary
      or involuntary or in bankruptcy, insolvency, receivership or other proceedings,
      all amounts due upon all Senior Indebtedness of the Company shall first be
      paid
      in full, or payment thereof provided for in money in accordance with its terms,
      before any payment is made by the Company on account of the principal (and
      premium, if any) or interest on the Notes; and upon any such dissolution or
      winding-up or liquidation or reorganization, any payment by the Company, or
      distribution of assets of the Company of any kind or character, whether in
      cash,
      property or securities, to which the Holders of the Note or the Trustee would
      be
      entitled to receive from the Company, except for the provisions of this Article
      VI, shall be paid by the Company or by any receiver, trustee in bankruptcy,
      liquidating trustee, agent or other Person making such payment or distribution,
      or by the Holders of the Notes or by the Trustee under this Indenture if
      received by them or it, directly to the holders of Senior Indebtedness of the
      Company (pro rata to such holders on the basis of the respective amounts of
      Senior Indebtedness held by such holders, as calculated by the Company) or
      their
      representative or representatives, or to the trustee or trustees under any
      indenture pursuant to which any instruments evidencing such Senior Indebtedness
      may have been issued, as their respective interests may appear, to the extent
      necessary to pay such Senior Indebtedness in full, in money or money’s worth,
      after giving effect to any concurrent payment or distribution to or for the
      holders of such Senior Indebtedness, before any payment or distribution is
      made
      to the Holders of Notes or to the Trustee.

     

    In
      the
      event that, notwithstanding the foregoing, any payment or distribution of assets
      of the Company of any kind or character, whether in cash, property or
      securities, prohibited by the foregoing, shall be received by the Trustee before
      all Senior Indebtedness of the Company is paid in full, or provision is made
      for
      such payment in money in accordance with its terms, such payment or distribution
      shall be held in trust for the benefit of and shall be paid over or delivered
      to
      the holders of such Senior Indebtedness or their representative or
      representatives, or to the trustee or trustees under any indenture pursuant
      to
      which any instruments evidencing such Senior Indebtedness may have been issued,
      and their respective interests may appear, as calculated by the Company, for
      application to the payment of all Senior Indebtedness of the Company, as the
      case may be, remaining unpaid to the extent necessary to pay such Senior
      Indebtedness in full in money in accordance with its terms, after giving effect
      to any concurrent payment or distribution to or for the holders of such Senior
      Indebtedness.

     

    For
      purposes of this Article VI, the words “cash, property or securities” shall not
      be deemed to include shares of stock of the Company as reorganized or
      readjusted, or securities of the Company or any other corporation provided
      for
      by a plan of reorganization or readjustment, the payment of which is
      subordinated at least to the extent provided in this Article VI with respect
      to
      the Notes to the payment of all Senior Indebtedness of the Company, as the
      case
      may be, that may at the time be outstanding, provided that (i) such Senior
      Indebtedness is assumed by the new corporation, if any, resulting from any
      such
      reorganization or readjustment, and (ii) the rights of the holders of such
      Senior Indebtedness are not, without the consent of such holders, altered by
      such reorganization or readjustment. The consolidation of the Company with,
      or
      the merger of the Company into, another corporation or the liquidation
      or

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    dissolution
      of the Company following the conveyance or transfer of its property as an
      entirety, or substantially as an entirety, to another corporation upon the
      terms
      and conditions provided for in Article Eight of the Base Indenture shall not
      be
      deemed a dissolution, winding-up, liquidation or reorganization for the purposes
      of this Section 6.3 if such other corporation shall, as a part of such
      consolidation, merger, conveyance or transfer, comply with the conditions stated
      in Article Eight of the Base Indenture. Nothing in Section 6.2 or in this
      Section 6.3 shall apply to claims of, or payments to, the Trustee under or
      pursuant to Section 606 of the Base Indenture.

     

    SECTION
      6.4.   Subrogation.
      Subject
      to the payment in full of all Senior Indebtedness of the Company, the rights
      of
      the Holders of the Notes shall be subrogated to the rights of the holders of
      such Senior Indebtedness to receive payments or distributions of cash, property
      or securities of the Company, as the case may be, applicable to such Senior
      Indebtedness until the principal of (and premium, if any) and interest on the
      Notes shall be paid in full; and, for the purposes of such subrogation, no
      payments or distributions to the holders of such Senior Indebtedness of any
      cash, property or securities to which the Holders of the Notes or the Trustee
      would be entitled except for the provisions of this Article VI, and no payment
      over pursuant to the provisions of this Article VI to or for the benefit of
      the
      holders of such Senior Indebtedness by Holders of the Notes or the Trustee,
      shall, as between the Company, its creditors other than holders of Senior
      Indebtedness of the Company, and the Holders of the Notes shall be deemed to
      be
      a payment by the Company to or on account of such Senior Indebtedness. It is
      understood that the provisions of this Article VI are and are intended solely
      for the purposes of defining the relative rights of the Holders of the Notes,
      on
      the one hand, and the holders of such Senior Indebtedness, on the other
      hand. 

     

    Nothing
      contained in this Article VI or elsewhere in the Indenture or in the Notes
      is
      intended to or shall impair, as between the Company, its creditors other than
      the holders of Senior Indebtedness of the Company, and the Holders of the Notes,
      the obligation of the Company, which is absolute and unconditional, to pay
      to
      the Holders of the Notes the principal of (and premium, if any) and interest
      on
      the Notes as and when the same shall become due and payable in accordance with
      their terms, or is intended to or shall affect the relative rights of the
      Holders of the Notes and creditors of the Company, as the case may be, other
      than the holders of Senior Indebtedness of the Company, as the case may be,
      nor
      shall anything herein or therein prevent the Trustee or the Holder of any Note
      from exercising all remedies otherwise permitted by applicable law upon default
      under the Indenture, subject to the rights, if any, under this Article VI of
      the
      holders of such Senior Indebtedness in respect of cash, property or securities
      of the Company, as the case may be, received upon the exercise of any such
      remedy.

     

    Upon
      any
      payment or distribution of assets of the Company referred to in this Article
      VI,
      the Trustee, subject to the provisions of Section 602 of the Base
      Indenture, and the Holders of the Notes shall be entitled to rely upon any
      order
      or decree made by any court of competent jurisdiction in which such dissolution,
      winding-up, liquidation or reorganization proceedings are pending, or a
      certificate of the receiver, trustee in bankruptcy, liquidation trustee, agent
      or other Person making such payment or distribution, delivered to the Trustee
      or
      to the Holders of the Notes, for the purposes of ascertaining the Persons
      entitled to participate in such distribution, the holders of Senior

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    Indebtedness
      and other indebtedness of the Company, as the case may be, the amount thereof
      or
      payable thereon, the amount or amounts paid or distributed thereon and all
      other
      facts pertinent thereto or to this Article VI.

     

    SECTION
      6.5.   Trustee
      to Effectuate Subordination. Each
      Holder of Notes by such Holder’s acceptance thereof authorizes and directs the
      Trustee on such Holder’s behalf to take such action as may be necessary or
      appropriate to effectuate the subordination provided in this Article VI and
      appoints the Trustee such Holder’s attorney-in-fact for any and all such
      purposes.

     

    SECTION
      6.6.   Notice
      by the Company. The
      Company shall give prompt written notice to a Responsible Officer of the Trustee
      of any fact known to the Company that would prohibit the making of any payment
      of monies to or by the Trustee in respect of the Notes pursuant to the
      provisions of this Article VI. Notwithstanding the provisions of this Article
      VI
      or any other provision of the Indenture, the Trustee shall not be charged with
      knowledge of the existence of any facts that would prohibit the making of any
      payment of monies to or by the Trustee in respect of the Notes pursuant to
      the
      provisions of this Article VI, unless and until a Responsible Officer of the
      Trustee shall have received written notice thereof from the Company or a holder
      or holders of Senior Indebtedness or from any trustee therefor; and before
      the
      receipt of any such written notice, the Trustee, subject to the provisions
      of
      Section 602 of the Base Indenture, shall be entitled in all respects to
      assume that no such facts exist; provided,
      however, that,
      if
      the Trustee shall not have received the notice provided for in this
      Section 6.6 at least two Business Days prior to the date upon which by the
      terms hereof any money may become payable for any purpose (including, without
      limitation, the payment of the principal of (or premium, if any) or interest
      on
      any Note), then, anything herein contained to the contrary notwithstanding,
      the
      Trustee shall have full power and authority to receive such money and to apply
      the same to the purposes for which they were received, and shall not be affected
      by any notice to the contrary that may be received by it within two Business
      Days prior to such date. 

     

    The
      Trustee, subject to the provisions of Section 602 of the Base Indenture,
      shall be entitled to rely on the delivery to it of a written notice by a Person
      representing himself to be a holder of Senior Indebtedness of the Company,
      as
      the case may be (or a trustee on behalf of such holder) to establish that such
      notice has been given by a holder of such Senior Indebtedness or a trustee
      on
      behalf of any such holder or holders. In the event that the Trustee determines
      in good faith that further evidence is required with respect to the right of
      any
      Person as a holder of such Senior Indebtedness to participate in any payment
      or
      distribution pursuant to this Article VI, the Trustee may request such Person
      to
      furnish evidence to the reasonable satisfaction of the Trustee as to the amount
      of such Senior Indebtedness held by such Person, the extent to which such Person
      is entitled to participate in such payment or distribution and any other facts
      pertinent to the rights of such Person under this Article VI, and, if such
      evidence is not furnished, the Trustee may defer any payment to such Person
      pending judicial determination as to the right of such Person to receive such
      payment.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    SECTION
      6.7.   Rights
      of the Trustee; Holders of Senior Indebtedness. The
      Trustee in its individual capacity shall be entitled to all the rights set
      forth
      in this Article VI in respect of any Senior Indebtedness at any time held by
      it,
      to the same extent as any other holder of Senior Indebtedness, and nothing
      in
      this Indenture shall deprive the Trustee of any of its rights as such
      holder.

     

    With
      respect to the holders of Senior Indebtedness of the Company, the Trustee
      undertakes to perform or to observe only such of its covenants and obligations
      as are specifically set forth in this Article VI, and no implied covenants
      or
      obligations with respect to the holders of such Senior Indebtedness shall be
      read into the Base Indenture or this Second Supplemental Indenture against
      the
      Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the
      holders of such Senior Indebtedness and the Trustee shall not be liable to
      any
      holder of such Senior Indebtedness if it shall pay over or deliver to Holders
      of
      Notes, the Company or any other Person money or assets to which any holder
      of
      such Senior Indebtedness shall be entitled by virtue of this Article VI or
      otherwise.

     

    SECTION
      6.8.   Subordination
      May Not Be Impaired. No
      right
      of any present or future holder of any Senior Indebtedness of the Company to
      enforce subordination as herein provided shall at any time in any way be
      prejudiced or impaired by any act or failure to act on the part of the Company,
      as the case may be, or by any act or failure to act, in good faith, by any
      such
      holder, or by any noncompliance by the Company, as the case may be, with the
      terms, provisions and covenants of the Indenture, regardless of any knowledge
      thereof that any such holder may have or otherwise be charged with.

     

    Without
      in any way limiting the generality of the foregoing paragraph, the holders
      of
      Senior Indebtedness of the Company may, at any time and from time to time,
      without the consent of or notice to the Trustee or the Holders of the Notes,
      without incurring responsibility to the Holders of the Notes and without
      impairing or releasing the subordination provided in this Article VI or the
      obligations hereunder of the Holders of the Notes to the holders of such Senior
      Indebtedness, do any one or more the following: (i) change the manner,
      place or terms of payment or extend the time of payment of, or renew or alter,
      such Senior Indebtedness, or otherwise amend or supplement in any manner such
      Senior Indebtedness or any instrument evidencing the same or any agreement
      under
      which such Senior Indebtedness is outstanding; (ii) sell, exchange, release
      or otherwise deal with any property pledged, mortgaged or otherwise securing
      such Senior Indebtedness; (iii) release any Person liable in any manner for
      the collection of such Senior Indebtedness; and (iv) exercise or refrain
      from exercising any rights against the Company, as the case may be, and any
      other Person.

     

    ARTICLE
      VII 

     

    FORM
      OF NOTE

     

    SECTION
      7.1.   Form
      of Note.
      The
      Notes and the Trustee’s Certificate of Authentication to be endorsed thereon are
      to be substantially in the form attached hereto as Exhibit A.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    ARTICLE
      VIII

     

    ORIGINAL
      ISSUE OF NOTES

     

    SECTION
      8.1.   Original
      Issue of Notes. Notes
      in
      the aggregate principal amount of $600,000,000 may, upon execution of this
      Second Supplemental Indenture, be executed by the Company and delivered to
      the
      Trustee for authentication, and the Trustee shall thereupon authenticate and
      deliver said Notes to or upon the written order of the Company, signed by its
      Chairman, its President, or any Vice President and its Treasurer or an Assistant
      Treasurer, without any further action by the Company. Additional Notes without
      limitation as to amount, and without the consent of the holders of the then
      Outstanding Notes, may also be authenticated and delivered in the manner
      provided in Section 201 of the Base Indenture. Any such additional Notes will
      have the same Stated Maturity and other terms as those initially issued and
      shall be consolidated with and part of the same series of Notes as the Notes
      initially issued under this Second Supplemental Indenture.

     

    ARTICLE
      IX

     

    MISCELLANEOUS

     

    SECTION
      9.1.   Ratification
      of Indenture; Second Supplemental Indenture Controls. The
      Base
      Indenture, as supplemented by this Second Supplemental Indenture, is in all
      respects ratified and confirmed, and this Second Supplemental Indenture shall
      be
      deemed part of the Indenture in the manner and to the extent herein and therein
      provided.
      The
      provisions of this Second Supplemental Indenture shall supercede the provisions
      of the Base Indenture to the extent the Base Indenture is inconsistent with
      the
      Second Supplemental Indenture.

     

    SECTION
      9.2.   Trustee
      Not Responsible for Recitals. The
      recitals herein contained are made by the Company and not by the Trustee, and
      the Trustee assumes no responsibility for the correctness thereof. The Trustee
      makes no representation as to the validity or sufficiency of this Second
      Supplemental Indenture.

     

    SECTION
      9.3.   Governing
      Law. This
      Second Supplemental Indenture and each Note shall be deemed to be a contract
      made under the internal laws of the State of New York, and for all purposes
      shall be construed in accordance with the laws of said State.

     

    SECTION
      9.4.   Separability.
      In
      case
      any one or more of the provisions contained in this Second Supplemental
      Indenture or in the Notes shall for any reason be held to be invalid, illegal
      or
      unenforceable in any respect, such invalidity, illegality or unenforceability
      shall not affect any other provisions of this Second Supplemental Indenture
      or
      of the Notes, but Second Supplemental Indenture and the Notes shall be construed
      as if such invalid or illegal or unenforceable provision had never been
      contained herein or therein.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    SECTION
      9.5.   Counterparts.
      This
      Second Supplemental Indenture may be executed in any number of counterparts
      each
      of which shall be an original; but such counterparts shall together constitute
      but one and the same instrument.

     

    

     

    
      
        
          19

           

          -NY12533:207075.920

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Second Supplemental
      Indenture to be duly executed on the date or dates indicated in the
      acknowledgements and as of the day and year first above written.

     

    SOUTHERN
      UNION COMPANY

    

    

    By:
      ___________________________

    Name:

    Title:

    

     

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

    as
      Trustee

    

    

    By:
      ____________________________

    Name:

    Title:

    

     

    

    
      
        
           

          -NY12533:207075.9

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      A

    (FORM
      OF
      FACE OF NOTE)

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

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

    THE
      NOTES
      EVIDENCED HEREBY WILL BE ISSUED, AND MAY BE TRANSFERRED, ONLY IN BLOCKS HAVING
      A
      PRINCIPAL AMOUNT OF NOT LESS THAN $1,000. ANY TRANSFER, SALE OR OTHER
      DISPOSITION OF SUCH NOTES IN A BLOCK HAVING A PRINCIPAL AMOUNT OF LESS THAN
      $1,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH
      TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH NOTES FOR ANY PURPOSE,
      INCLUDING BUT NOT LIMITED TO THE RECEIPT OF PAYMENTS IN RESPECT OF SUCH NOTES,
      AND SUCH TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH
      NOTES.

    

    

      

      
        *
          Insert
          in Global Notes.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]