Document:

Filed by sedaredgar.com - Silverado Gold Mines Ltd. - Exhibit 4.1

SILVERADO GOLD MINES LTD 

2009 EQUITY COMPENSATION PLAN 

I. ESTABLISHMENT OF PLAN; DEFINITIONS 

1.        Purpose.
The purpose of the Silverado Gold Mines Ltd. 2009 Equity Compensation Plan is to
encourage certain directors, officers, employees, and consultants of Silverado
Gold Mines Ltd., a company incorporated under the laws of British Columbia (the
"Company"), to acquire and hold stock in the Company as an added incentive to
remain with the Company and to increase their efforts in promoting the interests
of the Company and to enable the Company to attract and retain capable
individuals. 

2.      
 Definitions. Unless the context clearly indicates otherwise, the
following terms shall have the meanings set forth below: 

          (a)      "Board"
shall mean the Board of Directors of the Company. 

          (b)      "Code"
shall mean the Internal Revenue Code of 1986, as it may be amended from time to
time. 

          (c)     
"Committee" shall mean a committee made up of at least three members of the
Board whose members shall, from time to time, be appointed by the Board;
provided, however, that such Committee shall at all times consist of at least
two non-employee Directors. 

          (d)      "Company"
shall mean Silverado Gold Mines Ltd., a company incorporated under the laws of
British Columbia. 

          (e)      "Consultants"
shall mean individuals who provide services to the Company who are not Employees
or Directors. 

          (f)     
"Directors" shall mean those members of the Board of Directors of the Company
who are not Employees. 

          (g)     
"Disability" shall mean a medically determinable physical or mental condition
which causes an Employee, Director or Consultant to be unable to engage in any
substantial gainful activity and which can be expected to result in death or to
be of long-continued and indefinite duration. 

          (h)     
"Employee" shall mean any common law employee, including officers, of the
Company as determined under the Code and the Treasury Regulations thereunder.

          (i)     
"Fair Market Value" shall mean the value of a share of Stock on a specified day (i) if the Stock is listed on a national
securities exchange or the NASDAQ system, the mean between the highest and
lowest sales prices for the Stock on such date, or, if no such prices are
reported for such day, then on the next preceding day on which there were
reported prices; (ii) if the Stock is not listed on a national securities
exchange or the NASDAQ system, the mean between the bid and asked prices for the
Stock on such date, or if no such prices are reported for such day, then on the
immediately preceding day (within 7 days of such specified day) on which there were reported prices; or (iii) if no prices are reported for such immediately preceeding day, as
determined in good faith by the Company’s Board.

          (j)     
"Grantee" shall mean an officer, Employee, Director or Consultant granted a
Stock Option or Stock Award under this Plan. 

          (k)      "Incentive
Stock Option" shall mean an option granted pursuant to the Incentive Stock
Option provisions as set forth in Part II of this Plan. 

          (l)      "Non-Qualified
Stock Option" shall mean an option granted pursuant to the Non-Qualified Stock
Option provisions as set forth in Part III of this Plan. 

          (m)     
"Plan" shall mean the Silverado Gold Mines Ltd. 2009 Equity Compensation Plan as
set forth herein and as amended from time to time. 

          (n)      "Restricted
Stock" shall mean Stock which is issued as Restricted Stock as set forth in Part
IV of this Plan. 

          (o)      "Stock"
shall mean authorized but unissued shares of the Common Stock of the Company or
reacquired shares of the Company's Common Stock. 

          (p)     
"Stock Appreciation Right" shall mean a stock appreciation right granted
pursuant to the Stock Appreciation Right provisions as set forth in Parts II and
III of this Plan. 

          (q)     
"Stock Award" shall mean an award of Restricted or Unrestricted Stock granted
pursuant to this Plan. 

          (r)      "Stock
Option" shall mean an option granted pursuant to the Plan to purchase shares of
Stock. 

          (s)     
“Subsidiary” shall mean any corporation (other than the Company) in an unbroken
chain of corporations beginning with and including the Company, if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50 percent (50%) or more of the total combined voting power of all
classes of stock in one of the other corporations in such chain.

          (t)     
"Ten Percent Shareholder" shall mean an Employee who at the time a Stock Option
is granted owns stock possessing more than ten percent (10%) of the total
combined voting power of all stock of the Company or of its parent or
subsidiary. 

          (u)      "Unrestricted
Stock" shall mean Stock which is issued pursuant to the Unrestricted Stock
provisions as set forth in Part V of this Plan. 

3.        Shares of Stock
Subject to the Plan. Subject to the provisions of Paragraph 2 of Part VI of
the Plan, the Stock which may be issued or transferred pursuant to Stock Options
and Stock Awards granted under the Plan and the Stock which is subject to
outstanding but unexercised Stock Options under the Plan shall not exceed One
Hundred and Thirty Million (130,000,000) shares in the aggregate. If a Stock
Option shall expire and terminate for any reason, in whole or in part, without
being exercised or, if Stock Awards are forfeited because the restrictions with
respect to such Stock Awards shall not have been met or have lapsed, the number
of shares of Stock which are no longer outstanding as Stock Awards or subject to
Stock Options may again become available for the grant of Stock Awards or Stock
Options. There shall be no terms and conditions in a Stock Award or Stock Option
which provide that the exercise of an Incentive Stock Option reduces the number
of shares of Stock for which an outstanding Non-Qualified Stock Option may be
exercised; and there shall be no terms and conditions in a Stock Award or Stock
Option which provide that the exercise of a Non-Qualified Stock Option reduces
the number of shares of Stock for which an outstanding Incentive Stock Option
may be exercised. 

4.        Administration
of the Plan. The Plan shall be administered by the Committee. Subject to the
express provisions of the Plan, the Committee shall have authority to interpret
the Plan, to prescribe, amend, and rescind rules and regulations relating to it,
to determine the terms and provisions of Stock Option agreements, and to make
all other determinations necessary or advisable for the administration of the
Plan. Any controversy or claim arising out of or related to this Plan shall be
determined unilaterally by and at the sole discretion of the Committee. 

5.        Amendment or
Termination. The Board may, at any time, alter, amend, suspend, discontinue,
or terminate this Plan; provided, however, that such action shall not adversely
affect the right of Grantees to 

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Stock Awards or Stock Options previously granted and no
amendment, without the approval of the stockholders of the Company, shall
increase the maximum number of shares which may be awarded under the Plan in the
aggregate, materially increase the benefits accruing to Grantees under the Plan,
change the class of Employees eligible to receive options under the Plan, or
materially modify the eligibility requirements for participation in the Plan.

6.        Effective Date
and Duration of the Plan. This Plan shall become effective on January 29,
2009.This Plan shall terminate at such time as may be determined by the Board,
and no Stock Award or Stock Option may be issued or granted under the Plan
thereafter, but such termination shall not affect any Stock Award or Stock
Option theretofore issued or granted. 

II. INCENTIVE STOCK OPTIONS 

1.        Granting of
Incentive Stock Options. 

          (a)      Only
Employees of the Company shall be eligible to receive Incentive Stock Options
under the Plan. Officers, Directors and Consultants of the Company who are not
also Employees shall not be eligible to receive Incentive Stock Options. 

          (b)      The
purchase price of each share of Stock subject to an Incentive Stock Option shall
not be less than 100% of the Fair Market Value of a share of the Stock on the
date the Incentive Stock Option is granted; provided, however, that the purchase
price of each share of Stock subject to an Incentive Stock Option granted to a
Ten Percent Shareholder shall not be less than 110% of the Fair Market Value of
a share of the Stock on the date the Incentive Stock Option is granted. 

          (c)     
No Incentive Stock Option shall be exercisable more than ten years from the date
the Incentive Stock Option was granted; provided, however, that an Incentive
Stock Option granted to a Ten Percent Shareholder shall not be exercisable more
than five years from the date the Incentive Stock Option was granted. 

          (d)      The
Committee shall determine and designate from time to time those Employees who
are to be granted Incentive Stock Options and specify the number of shares
subject to each Incentive Stock Option. 

          (e)      The
Committee, in its sole discretion, shall determine whether any particular
Incentive Stock Option shall become exercisable in one or more installments,
specify the installment dates, and, within the limitations herein provided,
determine the total period during which the Incentive Stock Option is
exercisable. Further, the Committee may make such other provisions as may appear
generally acceptable or desirable to the Committee or necessary to qualify its
grants under the provisions of Section 422 of the Code. 

          (f)      The
Committee may grant at any time new Incentive Stock Options to an Employee who
has previously received Incentive Stock Options or other options whether such
prior Incentive Stock Options or other options are still outstanding, have
previously been exercised in whole or in part, or are canceled in connection
with the issuance of new Incentive Stock Options. The purchase price of the new
Incentive Stock Options may be established by the Committee without regard to
the existing Incentive Stock Options or other options. 

          (g)     
Notwithstanding any other provisions hereof, the aggregate fair market value
(determined at the time the option is granted) of the Stock with respect to
which Incentive Stock Options are exercisable for the first time by the Employee
during any calendar year (under all such plans of the Grantee's employer
corporation and its parent and subsidiary corporation) shall not exceed
$100,000. 

2.        Exercise of
Incentive Stock Options. The option price of an Incentive Stock Option shall
be payable on exercise of the option (i) in cash or by check, bank draft or
postal or express money order, (ii) by the surrender of Stock then owned by the
Grantee, (iii) the proceeds of a loan from an independent 

3

broker-dealer whereby the loan is secured by the option or the
stock to be received upon exercise, or (iv) any combination of the foregoing;
provided, that each such method and time for payment and each
such borrowing and terms and conditions of repayment shall then be permitted by
and be in compliance with applicable law. Shares of Stock so surrendered in
accordance with clause (ii) or (iv) shall be valued at the Fair Market Value
thereof on the date of exercise, surrender of such Stock to be evidenced by
delivery of the certificate(s) representing such shares in such manner, and
endorsed in such form, or accompanied by stock powers endorsed in such form, as
the Committee may determine. 

3.        Termination of
Employment. 

          (a)     
If a Grantee's employment with the Company is terminated other than by
Disability or death, the terms of any then outstanding Incentive Stock Option
held by the Grantee shall extend for a period ending on the earlier of the date
on which such Stock Option would otherwise expire or three months after such
termination of employment, and such Stock Option shall be exercisable to the
extent it was exercisable as of such last date of employment. 

          (b)     
If a Grantee's employment with the Company is terminated by reason of
Disability, the term of any then outstanding Incentive Stock Option held by the
Grantee shall extend for a period ending on the earlier of the date on which
such Stock Option would otherwise expire or twelve months after such termination
of employment, and such Stock Option shall be exercisable to the extent it was
exercisable as of such last date of employment. 

          (c)     
If a Grantee's employment with the Company is terminated by reason of death, the
representative of his estate or beneficiaries thereof to whom the Stock Option
has been transferred shall have the right during the period ending on the
earlier of the date on which such Stock Option would otherwise expire or twelve
months after such date of death, to exercise any then outstanding Incentive
Stock Options in whole or in part. If a Grantee dies without having fully
exercised any then outstanding Incentive Stock Options, the representative of
his estate or beneficiaries thereof to whom the Stock Option has been
transferred shall have the right to exercise such Stock Options in whole or in
part. 

4.        Stock
Appreciation Rights 

          (a)      Grant.
Stock Appreciation Rights related to all or any portion of an Incentive Stock
Option may be granted by the Committee to any Grantee in connection with the
grant of an Incentive Stock Option or unexercised portion thereof held by the
Grantee at any time and from time to time during the term thereof. Each Stock
Appreciation Right shall be granted at least at Fair Market Value on the date of
grant and be subject to such terms and conditions not inconsistent with the
provisions of this Part II as shall be determined by the Committee and included
in the agreement relating to such Stock Appreciation Right, subject in any
event, however, to the following terms and conditions of this Section 4. Each
Stock Appreciation Right may include limitations as to the time when such Stock
Appreciation Right becomes exercisable and when it ceases to be exercisable that
are more restrictive than the limitations on the exercise of the Incentive Stock
Option to which it relates. 

          (b)      Exercise.
No Stock Appreciation Right shall be exercisable with respect to such related
Incentive Stock Option or portion thereof unless such Incentive Stock Option or
portion shall itself be exercisable at that time. A Stock Appreciation Right
shall be exercised only upon surrender of the related Incentive Stock Option or
portion thereof in respect of which the Stock Appreciation Right is then being
exercised. 

          (c)      Amount
of Payment. On exercise of a Stock Appreciation Right, a Grantee shall be
entitled to receive an amount equal to the product of (i) the amount by which
the Fair Market Value of a share of Stock on the date of exercise of the Stock
Appreciation Right exceeds the option price per share specified in the related
Incentive Stock Option and (ii) the number of shares of Stock in respect of
which the Stock Appreciation Right shall have been exercised. 

4

          (d)      Form
of Payment. Stock Appreciation Rights may only be settled in Stock. The
number of shares of Stock to be distributed shall be the largest whole number
obtained by dividing the amount otherwise distributable in respect of such
settlement by the Fair Market Value of a share of Stock on the date of exercise
of the Stock Appreciation Right. The value of fractional shares of Stock shall
be paid in cash. 

          (e)     
Effect of Exercise of Right or Related Option. If the related Incentive
Stock Option is exercised in whole or in part, then the Stock Appreciation Right
with respect to the Stock purchased pursuant to such exercise (but not with
respect to any unpurchased Stock) shall be terminated as of the date of exercise
if such Stock Appreciation Right is not exercised on such date. 

          (f)     
Non-transferability. A Stock Appreciation Right shall not be transferable
or assignable by the Grantee other than by will or the laws of descent and
distribution, and shall be exercisable during the Grantee's lifetime only by the
Grantee. 

          (g)     
Termination of Employment. If the Grantee ceases to be an Employee of the
Company for any reason, each outstanding Stock Appreciation Right shall be
exercisable for such period and to such extent as the related Incentive Stock
Option or portion thereof. 

III. NON-QUALIFIED STOCK OPTIONS 

1.        Granting of
Stock Options. 

          (a)      Officers,
Employees, Directors and Consultants shall be eligible to receive Non-Qualified
Stock Options under the Plan. 

          (b)     
The Committee shall determine and designate from time to time those officers,
Employees, Directors and Consultants who are to be granted Non-Qualified Stock
Options and the amount subject to each Non-Qualified Stock Option. 

          (c)     
The Committee may grant at any time new Non-Qualified Stock Options to an
Employee, Director or Consultant who has previously received Non-Qualified Stock
Options or other Stock Options, whether such prior Non-Qualified Stock Options
or other Stock Options are still outstanding, have previously been exercised in
whole or in part, or are canceled in connection with the issuance of new
Non-Qualified Stock Options. 

          (d)     
The Committee shall determine the purchase price of each share of Stock subject
to a Non-Qualified Stock Option. Such price shall not be less than 100% of the
Fair Market Value of such Stock on the date the Non-Qualified Stock Option is
granted. 

          (e)      The
Committee, in its sole discretion, shall determine whether any particular
Non-Qualified Stock Option shall become exercisable in one or more installments,
specify the installment dates, and, within the limitations herein provided,
determine the total period during which the Non-Qualified Stock Option is
exercisable. Further, the Committee may make such other provisions as may appear
generally acceptable or desirable to the Committee, including the extension of a
Non-Qualified Stock Option, provided that such extension does not extend the
option beyond the period specified in paragraph (f) below. 

          (f)      No
Non-Qualified Stock Option shall be exercisable more than ten years from the
date such option is granted. 

2.        Exercise of
Stock Options. The option price of a Non-Qualified Stock Option shall be
payable on exercise of the Stock Option (i) in cash or by check, bank draft or
postal or express money order, (ii) by the surrender of Stock then owned by the
Grantee, (iii) the proceeds of a loan from an independent broker-dealer whereby
the loan is secured by the option or the stock to be received upon exercise, or
(iv) any combination of the foregoing; provided, that each
such method and time for payment and each such 

5

borrowing and terms and conditions of repayment shall then be
permitted by and be in compliance with applicable law. Shares of Stock so
surrendered in accordance with clause (ii) or (iv) shall be valued at the Fair
Market Value thereof on the date of exercise, surrender of such Stock to be
evidenced by delivery of the certificate(s) representing such shares in such
manner, and endorsed in such form, or accompanied by stock powers endorsed in
such form, as the Committee may determine. 

3.        Termination of
Relationship. 

          (a)     
If a Grantee's employment with the Company is terminated, a Director Grantee
ceases to be a Director, or a Consultant Grantee ceases to be a Consultant,
other than by reason of Disability or death, the terms of any then outstanding
Non-Qualified Stock Option held by the Grantee shall extend for a period ending
on the earlier of the date established by the Committee at the time of grant or
three months after the Grantee's last date of employment or cessation of being a
Director or Consultant, and such Stock Option shall be exercisable to the extent
it was exercisable as of the date of termination of employment or cessation of
being a Director or Consultant. 

          (b)      If
a Grantee's employment is terminated by reason of Disability, a Director Grantee
ceases to be a Director by reason of Disability or a Consultant Grantee ceases
to be a Consultant by reason of Disability, the term of any then outstanding
Non-Qualified Stock Option held by the Grantee shall extend for a period ending
on the earlier of the date on which such Stock Option would otherwise expire or
twelve months after the Grantee's last date of employment or cessation of being
a Director or Consultant, and such Stock Option shall be exercisable to the
extent it was exercisable as of such last date of employment or cessation of
being a Director or Consultant. 

          (c)      If
a Grantee's employment is terminated by reason of death, a Director Grantee
ceases to be a Director by reason of death or a Consultant Grantee ceases to be
a Consultant by reason of death, the representative of his estate or
beneficiaries thereof to whom the Stock Option has been transferred shall have
the right during the period ending on the earlier of the date on which such
Stock Option would otherwise expire or twelve months following his death to
exercise any then outstanding Non-Qualified Stock Options in whole or in part.
If a Grantee dies without having fully exercised any then outstanding
Non-Qualified Stock Options, the representative of his estate or beneficiaries
thereof to whom the Stock Option has been transferred shall have the right to
exercise such Stock Options in whole or in part. 

4.        Stock
Appreciation Rights 

          (a)      Grant.
Stock Appreciation Rights related to all or any portion of a Non-Qualified Stock
Option may be granted by the Committee to any Grantee in connection with the
grant of a Non-Qualified Stock Option or unexercised portion thereof held by the
Grantee at any time and from time to time during the term thereof. Each Stock
Appreciation Right shall be granted at least at Fair Market Value on the date of
grant and be subject to such terms and conditions not inconsistent with the
provisions of this Part III as shall be determined by the Committee and included
in the agreement relating to such Stock Appreciation Right, subject in any
event, however, to the following terms and conditions of this Section 4. Each
Stock Appreciation Right may include limitations as to the time when such Stock
Appreciation Right becomes exercisable and when it ceases to be exercisable that
are more restrictive than the limitations on the exercise of the Non-Qualified
Stock Option to which it relates. 

          (b)     
Exercise. No Stock Appreciation Right shall be exercisable with respect
to such related Non-Qualified Stock Option or portion thereof unless such
Non-Qualified Stock Option or portion shall itself be exercisable at that time.
A Stock Appreciation Right shall be exercised only upon surrender of the related
Non-Qualified Stock Option or portion thereof in respect of which the Stock
Appreciation Right is then being exercised. 

          (c)      Amount
of Payment. On exercise of a Stock Appreciation Right, a Grantee shall be
entitled to receive an amount equal to the product of (i) the amount by which
the Fair Market Value of a share of Stock on the date of exercise of the Stock
Appreciation Right exceeds the option price per share 

6

specified in the related Non-Qualified Stock Option and (ii)
the number of shares of Stock in respect of which the Stock Appreciation Right
shall have been exercised. 

          (d)     
Form of Payment. Stock Appreciation Rights may only be settled in Stock.
The number of shares of Stock to be distributed shall be the largest whole
number obtained by dividing the amount otherwise distributable in respect of
such settlement by the Fair Market Value of a share of Stock on the date of
exercise of the Stock Appreciation Right. The value of fractional shares of
Stock shall be paid in cash.

          (e)      Effect
of Exercise of Right or Related Option. If the related Non-Qualified Stock
Option is exercised in whole or in part, then the Stock Appreciation Right with
respect to the Stock purchased pursuant to such exercise (but not with respect
to any unpurchased Stock) shall be terminated as of the date of exercise if such
Stock Appreciation Right is not exercised on such date. 

          (f)      Non-transferability.
A Stock Appreciation Right shall not be transferable or assignable by the
Grantee other than by will or the laws of descent and distribution, and shall be
exercisable during the Grantee's lifetime only by the Grantee. 

          (g)     
Termination of Employment. If the Grantee ceases to be an officer,
Employee, Director or Consultant of the Company for any reason, each outstanding
Stock Appreciation Right shall be exercisable for such period and to such extent
as the related Non-Qualified Stock Option or portion thereof. 

IV. RESTRICTED STOCK AWARDS 

1.        Grant of
Restricted Stock.

          (a)      Officers,
Employees, Directors and Consultants shall be eligible to receive grants of
Restricted Stock under the Plan. 

          (b)      The
Committee shall determine and designate from time to time those officers,
Employees, Directors and Consultants who are to be granted Restricted Stock and
the number of shares of Stock subject to such Stock Award. 

          (c)      The
Committee, in its sole discretion, shall make such terms and conditions
applicable to the grant of Restricted Stock as may appear generally acceptable
or desirable to the Committee. 

2.        Termination of
Relationship. 

          (a)     
If a Grantee's employment with the Company, a Director Grantee ceases to be a
Director, or a Consultant Grantee ceases to be a Consultant, prior to the lapse
of any restrictions applicable to the Restricted Stock such Stock shall be
forfeited and the Grantee shall return the certificates representing such Stock
to the Company. 

          (b)     
If the restrictions applicable to a grant of Restricted Stock shall lapse, the
Grantee shall hold such Stock free and clear of all such restrictions except as
otherwise provided in the Plan. 

V. UNRESTRICTED STOCK AWARDS 

1.        Grant of
Unrestricted Stock. 

          (a)     
Officers, Employees, Directors and Consultants shall be eligible to receive
grants of Unrestricted Stock under the Plan. 

7

          (b)      The
Committee shall determine and designate from time to time those officers,
Employees, Directors and Consultants who are to be granted Unrestricted Stock
and number of shares of Stock subject to such Stock Award. 

2.        Issuance of
Stock. The Grantee shall hold Stock issued pursuant to an Unrestricted Stock
award free and clear of all restrictions except as otherwise provided in the
Plan. 

VI. GENERAL PROVISIONS 

1.        Substitution of
Options. In the event of a corporate merger or consolidation, or the
acquisition by the Company of property or stock of an acquired corporation or
any reorganization or other transaction qualifying under Section 424 of the
Code, the Committee may, in accordance with the provisions of that Section,
substitute Stock Options, Stock Awards and Stock Appreciation Rights under this
Plan for Stock Options, Stock Awards and Stock Appreciation Rights under the
plan of the acquired corporation provided (i) the excess of the aggregate fair
market value of the shares of Stock subject to Stock Option immediately after
the substitution over the aggregate option price of such Stock is not more than
the similar excess immediately before such substitution and (ii) the new Stock
Option does not give the Grantee additional benefits, including any extension of
the exercise period. Alternatively, the Committee may provide, that each Stock
Option, Stock Award and Stock Appreciation Right granted under the Plan shall
terminate as of a date to be fixed by the Board; provided, that no less
than thirty days written notice of the date so fixed shall be given to each
holder, and each holder shall have the right, during the period of thirty days
preceding such termination, to exercise the Stock Options, Stock Awards and
Stock Appreciation Rights as to all or any part of the Stock covered thereby,
including Stock as to which such would not otherwise be exercisable.

2.        Adjustment
Provisions. 

          (a)     
In the event that a dividend shall be declared upon the Stock payable in shares
of the Company's common stock, the number of shares of Stock then subject to any
Stock Option  outstanding under the Plan and the number of shares
reserved for the grant of Stock Options  pursuant to the Plan
shall be adjusted by adding to each such share the number of shares which would
be distributable in respect thereof if such shares had been outstanding on the
date fixed for determining the shareholders of the Company entitled to receive
such share dividend. 

          (b)     
If the shares of Stock outstanding are changed into or exchanged for a different
number or class or other securities of the Company or of another corporation,
whether through split-up, reverse stock split, merger, consolidation, reorganization,
reclassification or recapitalization then there shall be substituted for each
share of Stock subject to any such Stock Option  and for each
share of Stock reserved for the grant of Stock Options  pursuant
to the Plan the number and kind of shares or other securities into which each
outstanding share of Stock shall have been so changed or for which each share
shall have been exchanged. 

          (c)      In
the event there shall be any change, other than as specified above in this
Section 2, in the number or kind of outstanding shares of Stock or of any shares
or other securities into which such shares shall have been changed or for which
they shall have been exchanged, then if the Board shall, in its sole discretion,
determine that such change equitably requires an adjustment in the number or
kind of shares theretofore reserved for the grant of Stock Options  pursuant to the Plan and of the shares then subject to Stock Options , such adjustment shall be made by the Board and shall be effective
and binding for all purposes of the Plan and of each Stock Option  outstanding thereunder. 

          (d)      Each
Stock Appreciation Right outstanding at the time of any adjustment pursuant to
this Section 2 and the number of outstanding Stock Appreciation Rights, shall be
adjusted, changed or exchanged in the same manner as related Stock Options. 

8

          (e)     
In the case of any such substitution or adjustment as provided for in this
Section 2, the option price set forth in each outstanding Stock Option for each
share covered thereby prior to such substitution or adjustment will be the
option price for all shares or other securities which shall have been
substituted for such share or to which such share shall have been adjusted
pursuant to this Section 2, and the price per share shall be adjusted
accordingly. 

          (f)      No
adjustment or substitution provided for in this Section 2 shall require the
Company to sell a fractional share, and the total substitution or adjustment
with respect to each outstanding Stock Option shall be limited accordingly. 

          (g)      Upon
any adjustment made pursuant to this Section 2 the Company will, upon request,
deliver to the Grantee a certificate setting forth the option price thereafter
in effect and the number and kind of shares or other securities thereafter
purchasable on the exercise of such Stock Option. 

3.        General.

          (a)      Each
Stock Option, Stock Award and Stock Appreciation Right shall be evidenced by a
written instrument containing such terms and conditions, not inconsistent with
this Plan, as the Committee shall approve. 

          (b)      The
granting of a Stock Option, Stock Award or Stock Appreciation Right in any year
shall not give the Grantee any right to similar grants in future years or any
right to be retained in the employ of the Company, and all Employees shall
remain subject to discharge to the same extent as if the Plan were not in
effect. 

          (c)      No
officer, Employee, Director or Consultant and no beneficiary or other person
claiming under or through him, shall have any right, title or interest by reason
of any Stock Option or any Stock Award to any particular assets of the Company,
or any shares of Stock allocated or reserved for the purposes of the Plan or
subject to any Stock Option or any Stock Award except as set forth herein. The
Company shall not be required to establish any fund or make any other
segregation of assets to assure the payment of any Stock Option or Stock Award.

          (d)     
No right under the Plan shall be subject to anticipation, sale, assignment,
pledge, encumbrance, or charge except by will or the laws of descent and
distribution, and a Stock Option shall be exercisable during the Grantee's
lifetime only by the Grantee or his conservator. 

          (e)     
Notwithstanding any other provision of this Plan or agreements made pursuant
thereto, the Company's obligation to issue or deliver any certificate or
certificates for shares of Stock under a Stock Option or Stock Award, and the
transferability of Stock acquired by exercise of a Stock Option or grant of a
Stock Award, shall be subject to all of the following conditions: 

                    (i)      Any
registration or other qualification of such shares under any state or federal
law or regulation, or the maintaining in effect of any such registration or
other qualification which the Board shall, in its absolute discretion upon the
advice of counsel, deem necessary or advisable; and 

                    (ii)      The
obtaining of any other consent, approval, or permit from any state or federal
governmental agency which the Board shall, in its absolute discretion upon the
advice of counsel, determine to be necessary or advisable. 

          (f)      All
payments to Grantees or to their legal representatives shall be subject to any
applicable tax, community property, or other statutes or regulations of the
United States or of any state or country having jurisdiction thereof. The
Grantee may be required to pay to the Company the amount of any withholding
taxes which the Company is required to withhold with respect to a Stock Option
or its exercise or a Stock Award. In the event that such payment is not made
when due, the Company shall have the right to deduct, to the extent permitted by
law, from any payment of any kind otherwise due to such person all or part of
the amount required to be withheld. 

9

          (g)      In
the case of a grant of a Stock Option or Stock Award to any Employee of a
subsidiary of the Company, the Company may, if the Committee so directs, issue
or transfer the shares, if any, covered by the Stock Option or Stock Award to
the subsidiary, for such lawful consideration as the Committee may specify, upon
the condition or understanding that the subsidiary will transfer the shares to
the Employee in accordance with the terms of the Stock Option or Stock Award
specified by the Committee pursuant to the provisions of the Plan. For purposes
of this Section, a subsidiary shall mean any subsidiary corporation of the
Company as defined in Section 424 of the Code. 

          (h)      A
Grantee entitled to Stock as a result of the exercise of a Stock Option or grant
of a Stock Award shall not be deemed for any purpose to be, or have rights as, a
shareholder of the Company by virtue of such exercise, except to the extent a
stock certificate is issued therefor and then only from the date such
certificate is issued. No adjustments shall be made for dividends or
distributions or other rights for which the record date is prior to the date
such stock certificate is issued. The Company shall issue any stock certificates
required to be issued in connection with the exercise of a Stock Option with
reasonable promptness after such exercise. 

          (i)      The
grant or exercise of Stock Options granted under the Plan or the grant of a
Stock Award under the Plan shall be subject to, and shall in all respects comply
with, applicable law relating to such grant or exercise, or to the number of
shares of Stock which may be beneficially owned or held by any Grantee. 

          (j)      The
Company intends that the Plan shall comply with the requirements of Rule 16b-3
(the “Rule”) under the Securities Exchange Act of 1934, as amended, during the
term of this Plan. Should any additional provisions be necessary for the Plan to
comply with the requirements of the Rule, the Board may amend this Plan to add
to or modify the provisions of this Plan accordingly. 

          (k)      The
Company intends that the Plan shall comply with the requirements of Section 409A
of the Code, to the extent applicable. Should any changes to the Plan be
necessary for the Plan to comply with the requirements of Code Section 409A the
Board may amend this Plan to add to or modify the provisions of this Plan
accordingly. 

          The
Company will seek stockholder approval in the manner and to the degree required
under Applicable Laws. If the Company fails to obtain stockholder approval of
the Plan within twelve (12) months after the date this Plan is adopted by the
Board, pursuant to Section 422 of the Code, any Option granted as an Incentive
Option at any time under the Plan will not qualify as an Incentive Option within
the meaning of the Code and will be deemed to be a Non-Statutory Option. 

SILVERADO GOLD MINES LTD.

10exhibit4a.htm

    

      
        

      

EXHIBIT
4.A

    
      
        
 

        

        

        TENNESSEE
GAS PIPELINE COMPANY

         

        ISSUER

         

         

        AND

         

         

         

        WILMINGTON
TRUST COMPANY

         

        TRUSTEE

         

        ___________________________________

         

         

        SIXTH
SUPPLEMENTAL INDENTURE

         

        DATED
AS OF JANUARY 27, 2009

         

        TO

         

        INDENTURE

         

        DATED
AS OF MARCH 4, 1997

         

         

        8.000%
NOTES DUE 2016

        

        

        

         

        
           

          
 

          
            
              
                 

              

              
                 

                
                  

                

              

              
                 

              

            

          

          

                  SIXTH SUPPLEMENTAL INDENTURE, dated
as of January 27, 2009 (herein called the “Sixth
Supplemental Indenture”), between TENNESSEE GAS PIPELINE COMPANY, a
Delaware corporation (herein called the “Company”),
having its principal office at 1001 Louisiana Street, Houston, Texas 77002 and
WILMINGTON TRUST COMPANY, (as successor to JPMorgan Chase Bank (formerly known
as The Chase Manhattan Bank)), a banking corporation duly organized and existing
under the laws of the State of Delaware, as trustee under the Indenture referred
to below (herein called the “Trustee”).

           

          RECITALS OF THE
COMPANY

           

          WHEREAS, the Company has heretofore
executed and delivered to the Trustee the Indenture, dated as of March 4, 1997
(herein called the “Original
Indenture”), providing for the issuance from time to time of one or more
series of the Company’s unsecured debentures, notes or other evidences of
indebtedness (herein called the “Securities”),
the terms of which are to be determined as set forth in Section 301 of the
Original Indenture; and

           

          WHEREAS, Section 901 of the Original
Indenture provides, among other things, that the Company and the Trustee may
enter into indentures supplemental to the Original Indenture for, among other
things, the purpose of establishing the form or terms of Securities of any
series as permitted by Sections 201 and 301 of the Original Indenture;
and

           

          WHEREAS, the Company desires to
create a series of the Securities in an aggregate principal amount of
$250,000,000, which series shall be designated the 8.000% Notes due 2016 (the
“Notes”),
and all action on the part of the Company necessary to authorize the issuance of
the Notes under the Original Indenture and this Sixth Supplemental Indenture has
been duly taken; and

           

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

           

          NOW, THEREFORE, THIS SIXTH
SUPPLEMENTAL INDENTURE WITNESSETH:

           

          That in consideration of the
premises and the issuance of the Notes, the Company covenants and agrees with
the Trustee, for the equal and proportionate benefit of all Holders of the
Notes, as follows:

           

           

          
            
              
              

            

            
              2

              
                

              

            

            
              
              

            

          

           

           

          ARTICLE
1

           

          Definitions

           

          Section
1.01.  Defined
Terms; Vote and Consent.  For purposes hereof, capitalized
terms used herein and not otherwise defined herein or in the recitals shall have
the meanings assigned to such terms in the Original Indenture. For all purposes
of this Sixth Supplemental Indenture and the Original Indenture, as amended by
this Sixth Supplemental
Indenture, the term “Notes”
shall include the Initial 2016 Notes (as defined below) and any Exchange Notes
(as defined below) to be issued and exchanged for any Initial 2016 Notes
pursuant to the Registration Rights Agreement (as defined below) and this Sixth
Supplemental Indenture.  For purposes of the Original Indenture, as
amended by this Sixth Supplemental Indenture, all Initial 2016 Notes and
Exchange Notes shall vote and consent together as one series of Securities and
shall not have the right to vote and consent as a series separate from one
another on any matter under the Original Indenture, as so amended by this Sixth
Supplemental Indenture.

           

          Section
1.02.  Definitions.  The
following terms have the meanings given to them in this Section
1.02:

           

          “Additional
Interest” shall have the meaning assigned to that term in Section
2.03.

           

          “Closing
Date” means January 27, 2009.

           

           “Distribution
Compliance Period” shall have the meaning assigned to that term in
Section 3.04(a).

           

          “Exchange
Notes” means any securities issued by the Company pursuant to the
Exchange Offer or otherwise pursuant to an effective Registration and containing
terms identical in all material respects to the Initial 2016 Notes for which
they are exchanged except that (i) interest thereon shall accrue from the last
date on which interest was paid on the Initial 2016 Notes or, if no such
interest has been paid, from the date of issuance of the Initial 2016 Notes,
(ii) the Exchange Notes will not contain the legend appearing on the face of the
Initial 2016 Notes in the form recited in this Sixth Supplemental Indenture and
will not contain terms with respect to transfer restrictions and (iii) the
Exchange Notes will not contain terms with respect to the payment of Additional
Interest for failure to comply with the Registration Rights
Agreement.

           

          “Exchange
Offer” means the exchange offer by the Company of Exchange Notes for
Initial 2016 Notes pursuant to the Registration Rights Agreement.

           

          “Global
Security” shall have the meaning set forth in Section
2.02.

           

          “Initial
2016 Notes” means the Notes issued under this Sixth Supplemental
Indenture which are not Exchange Notes.

           

          “QIB”
means a “qualified institutional buyer” as defined in Rule 144A.

           

          “Registration”
means a registered exchange offer for the Notes by the Company or other
registration of the Notes under the Securities Act pursuant to and in accordance
with the terms of the Registration Rights Agreement.

           

          “Registration
Default” shall have the meaning set forth in Section 2.03.

           

          “Registration
Rights Agreement” means the Registration Rights Agreement, dated as of
January 27, 2009, among the Company and Banc of America Securities LLC, Credit
Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., and Greenwich
Capital Markets, Inc., on behalf of the initial purchasers of the
Notes.

           

           

           

          
            
              
              

            

            
              3

              
                

              

            

            
              
              

            

             

             

          

          “Regulation
S” means Regulation S under the Securities Act.

           

          “Regulation
S Global Security” shall have the meaning set forth in Section
2.02.

           

          “Restricted
Legend” means the legend initially set forth on the Notes in the form set
forth in Section 3.02 hereof.

           

          “Restricted
Security” shall have the meaning set forth in Section
3.02(b).

           

          “Rule
144A” means Rule 144A under the Securities Act.

           

          “Rule
144A Global Security” shall have the meaning set forth in Section
2.02.

           

          “Securities
Act” shall have the meaning set forth in Section 3.02(b)(1).

           

           

          ARTICLE
2 

           

          Terms
and Issuance of 8.000% Notes Due 2016

           

          Section
2.01.  Issue
of Notes.  A series of Securities which shall be designated the
“8.000% Notes due 2016” shall be executed, authenticated and delivered in
accordance with the provisions of, and shall in all respects be subject to, the
terms, conditions and covenants of the Original Indenture, including without
limitation the terms set forth in this Sixth Supplemental Indenture (including
the form of Notes referred to in Section 2.02 hereof). The aggregate
principal amount of Notes which may be authenticated and delivered shall be
$250,000,000 (subject to Notes authenticated and delivered as provided in
Section 2.04 of this Sixth Supplemental Indenture or upon registration of
transfer of, or in exchange for, or in lieu of, other Notes of this series
pursuant to Section 304, 305, 306, 906 or 1107 under the Original
Indenture).  The entire amount of Notes may forthwith be executed by
the Company and delivered to the Trustee and shall be authenticated by the
Trustee and delivered to or upon the order of the Company pursuant to Section
303 of the Original Indenture.

           

          Section
2.02.  Forms
of Notes and Authentication Certificate.  Notes offered and
sold to QIBs in reliance on Rule 144A will be issued in the form of one or more
registered notes in global form without interest coupons (the “Rule
144A Global Securities”), and Notes offered and sold in offshore
transactions to non-U.S. persons in reliance on Regulation S, will be issued in
the form of one or more registered notes in global form without interest coupons
(the “Regulation
S Global Securities”), in each case pursuant to Section 204 of the
Original Indenture (each, a “Global
Security”), with the Global Securities legend and, if applicable, the
restricted securities legend set forth in Section 3.02 hereof and registered in
the name of the Depositary or its nominee. The Depository Trust Company shall be
the Depositary for such Global Securities. The forms and terms of the Notes and
the Trustee’s certificate of authentication shall be substantially as set forth
on Exhibit A hereto. The terms and provisions contained in the form of Notes set
forth in Exhibit A shall constitute, and are hereby expressly made, a part of
the Original Indenture as supplemented by this Sixth Supplemental
Indenture.

           

           

           

          
            
              
              

            

            
              4

              
                

              

            

            
              
              

            

             

             

          

          Section
2.03.  Registration
Default.  In the event that a Registration Default (as defined
in the Registration Rights Agreement) occurs, the Company shall pay additional
interest (in addition to the interest otherwise due) (“Additional
Interest”) to the Holder during the first 90-day period immediately
following the occurrence of any such Registration Default in an amount equal to
0.25% per annum (regardless of the number of Registration Defaults), increasing
by 0.25% per annum with respect to each subsequent 90-day period, up to a
maximum of 1.00% per annum, from and including the date on which any such
Registration Default shall occur (subject to the terms of the Registration
Rights Agreement) to but excluding the earlier of (1) the date on which all such
Registration Defaults have been cured or (2) the date on which all the Notes
otherwise become freely transferable by Holders other than affiliates of the
Company without further registration under the Securities Act.  The
Company shall pay amounts due in respect of Additional Interest on each Interest
Payment Date (or, if the Company shall default in the payment of interest on any
Interest Payment Date, on the date such interest is otherwise paid as provided
in the Original Indenture).

           

          Section
2.04.  Additional
Notes. This series of Notes may be reopened, without the consent of the
Holders thereof, for increases in the aggregate principal amount of the Notes
and issuance of additional Notes of this series ranking equally with these Notes
in all respects, so that such additional Notes shall be consolidated and form a
single series with these Notes and shall have the same terms as to status,
redemption or otherwise as these Notes, provided,
however,
that no Event of Default has occurred or is continuing with respect to such
Notes.

           

           

          ARTICLE
3 

           

          Transfer
and Exchange

           

          Section
3.01.  Transfer
and Exchange of Global Securities.  (a) The transfer and
exchange of beneficial interests in the Global Securities shall be effected
through the Depositary, in accordance with this Sixth Supplemental Indenture
(including applicable restrictions on transfer set forth herein, if any) and the
procedures of the Depositary therefor.

           

          Section
3.02.  Legends.
(a) Each Global Security shall bear the following legend on the face
thereof:

           

          THIS NOTE IS A
GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND
IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS NOTE MAY
NOT BE TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR SECURITIES REGISTERED IN
THE NAME OF, ANY PERSON OTHER THAN THE DEPOSITARY OR A NOMINEE THEREOF AND NO
SUCH TRANSFER MAY BE REGISTERED, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED
IN THE INDENTURE. EVERY NOTE AUTHENTICATED AND DELIVERED UPON REGISTRATION OF,
TRANSFER OF, OR IN EXCHANGE FOR OR IN LIEU OF, THIS NOTE SHALL BE A GLOBAL
SECURITY SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED
CIRCUMSTANCES.

           

           

           

          
            
              
              

            

            
              5

              
                

              

            

            
              
              

            

             

             

          

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

           

          (b) Except as otherwise provided in
Section 3.03, each Note that is an Initial 2016 Note (each a “Restricted
Security”) shall bear the following legend (the “Restricted
Legend”) on the face thereof:

           

          (1) THIS NOTE (OR ITS PREDECESSOR)
WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED
STATES SECURITIES ACT OF 1933 (THE “SECURITIES ACT”), AND THIS NOTE MAY NOT BE
OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN
APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED
THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS
OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER.

           

          (2) THE HOLDER OF THIS NOTE AGREES
FOR THE BENEFIT OF THE COMPANY THAT (A) THIS NOTE MAY BE OFFERED, RESOLD,
PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) IN THE UNITED STATES TO A PERSON WHOM
THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF
RULE 144A, (II) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN
ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (III) PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144
THEREUNDER (IF AVAILABLE), (IV) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT, OR (V) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (AS
DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES
ACT) THAT IS ACQUIRING THE NOTE FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH
AN INSTITUTIONAL “ACCREDITED INVESTOR” FOR INVESTMENT PURPOSES AND NOT WITH A
VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION
OF THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (V) IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER
WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS
NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN CLAUSE (A)
ABOVE.

           

           

           

          
            
              
              

            

            
              6

              
                

              

            

            
              
              

            

             

             

          

          (3) THE HOLDER AGREES THAT IT WILL
DELIVER TO EACH PERSON TO WHOM THIS NOTE OR AN INTEREST HEREIN IS TRANSFERRED A
NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND; AND

           

          (4) THE HOLDER AGREES THAT, BEFORE
THE HOLDER OFFERS, SELLS OR OTHERWISE TRANSFERS THIS NOTE, TENNESSEE GAS
PIPELINE COMPANY MAY REQUIRE THE HOLDER OF THIS NOTE TO DELIVER A WRITTEN
OPINION, CERTIFICATIONS AND/OR OTHER INFORMATION THAT IT REASONABLY REQUIRES TO
CONFIRM THAT SUCH PROPOSED TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE UNITED STATES.

           

          AS USED IN THIS NOTE, THE TERMS
“OFFSHORE TRANSACTION,” “U.S. PERSON” AND “UNITED STATES” HAVE THE MEANINGS
GIVEN TO THEM BY RULE 902 OF REGULATION S UNDER THE SECURITIES
ACT.

           

          (c) Each Note shall
bear the following legend on the face thereof:

           

          THIS NOTE IS ISSUED
WITH ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTION 1271 ET SEQ. OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED, AND THE RULES AND REGULATIONS
THEREUNDER. FOR EACH $1,000 PRINCIPAL AMOUNT OF THIS NOTE, (1) THE ISSUE
PRICE IS $948.81; (2) THE AMOUNT OF THE ORIGINAL ISSUE DISCOUNT IS $51.19;
(3) THE ISSUE DATE IS JANUARY 27, 2009; AND (4) THE YIELD TO MATURITY
IS 9.000% PER ANNUM.

           

          Section
3.03.
Removal
of Restricted Legend. (i) If the Company determines (upon the advice of
counsel and such other certifications and evidence as the Company may reasonably
require) that any Note is eligible for resale pursuant to Rule 144 under the
Securities Act (or a successor provision) and that the Restricted Legend is no
longer necessary or appropriate in order to ensure that subsequent transfers of
such Note (or a beneficial interest therein) are effected in compliance with the
Securities Act, or (ii) (x) after an Initial 2016 Note is sold pursuant to an
effective Registration, pursuant to the Registration Rights Agreement (if
applicable) or otherwise, or (y) after an Initial 2016 Note is exchanged for an
Exchange Note, the Company may instruct the Trustee to cancel such Note and
issue to the Holder thereof (or to its transferee) an Exchange Note of like
tenor and amount, registered in the name of the Holder thereof (or its
transferee), that does not bear the Restricted Legend, and the Trustee will
comply with such instruction.

           

          Section
3.04.  Registration
of Transfer or Exchange.  The registration of transfer or
exchange of any Note (or a beneficial interest therein) that bears the
Restricted Legend may only be made in compliance with the provisions of the
Restricted Legend and as set forth below.

           

          
            (a)  Prior to the 40th day
after the later of the commencement of the offering of the Notes and the Closing
Date (such period through and including such 40th day, the “Distribution
Compliance Period”), transfers by an owner of a beneficial interest in a
Regulation S Global Security to a transferee who takes delivery of such interest
through a Rule 144A Global Security of that series will be made only upon
receipt by the Trustee of a written certification from the transferor of the
beneficial interest to the effect that such transfer is being made to a Person
whom the transferor reasonably believes is a QIB in a transaction meeting the
requirements of Rule 144A.

          

           

           

           

          
            
              
              

            

            
              7

              
                

              

            

            
              
              

            

             

             

          

           

          (b)  Transfers
by an owner of a beneficial interest in the Rule 144A Global Security to a
transferee who takes delivery through the Regulation S Global Security of that
series, whether before or after the expiration of the Distribution Compliance
Period, will be made only upon receipt by the Trustee of a certification from
the transferor to the effect that such transfer is being made in accordance with
Regulation S or Rule 144 under the Securities Act and that, if such transfer is
being made prior to the expiration of the Distribution Compliance Period, the
interest transferred will be held immediately thereafter through Euroclear Bank
S.A./NV, as operator of the Euroclear System or Clearstream Banking, societe
anonyme, Luxembourg.

           

          (c)  Any
beneficial interest in one of the Global Securities that is transferred to a
Person who takes delivery in the form of an interest in another Global Security
of that series will, upon transfer, cease to be an interest in the initial
Global Security of that series and will become an interest in the other Global
Security of that series and, accordingly, will thereafter be subject to all
transfer restrictions, if any, and other procedures applicable to beneficial
interests in such other Global Security of that series for as long as it remains
such an interest.

           

          Section
3.05.  Preservation
of Information. The Trustee will retain copies of all certificates,
opinions and other documents received in connection with the registration of
transfer or exchange of a Note (or a beneficial interest therein) in accordance
with its customary policy, and the Company will have the right to inspect and
make copies thereof at any reasonable time upon written notice to the
Trustee.

           

          Section
3.06.  Acknowledgment
of Restrictions; Indemnification; No Obligation of Trustee.  By
its acceptance of any Note bearing the Restricted Legend, each Holder of such a
Note acknowledges the restrictions on registrations of transfer of such Note set
forth in this Sixth Supplemental Indenture and in the Restricted Legend and
agrees that it will register the transfer of such Note only as provided in this
Sixth Supplemental Indenture.  The Security Registrar shall not
register a transfer of any Note unless such transfer complies with the
restrictions on transfer of such Note set forth in this Sixth Supplemental
Indenture.  In connection with any registration of transfer of Notes,
each Holder agrees by its acceptance of the Notes to furnish the Security
Registrar or the Company such certifications, legal opinions or other
information as either of them may reasonably require to confirm that such
registration of transfer is being made pursuant to an exemption from, or a
transaction not subject to, the registration requirements of the Securities Act;
provided that the Security Registrar shall not be required to determine (but may
rely on a determination made by the Company with respect to) the sufficiency of
any such certifications, legal opinions or other
information.

           

          The Security
Registrar shall retain copies of all letters, notices and other written
communications received pursuant to the Indenture in accordance with its
customary policy.  The Company shall have the right to inspect and
make copies of all such letters, notices or other written communications at any
reasonable time upon the giving of reasonable written notice to the Security
Registrar.

           

           

           

           

          
            
              
              

            

            
              8

              
                

              

            

            
              
              

            

             

             

          

          Each Holder of a
Note agrees to indemnify the Company and the Trustee against any liability that
may result from the transfer, exchange or assignment of such Holder’s Note in
violation of any provision of this Sixth Supplemental Indenture and/or
applicable United States Federal or state securities law.

           

          The Trustee shall
have no obligation or duty to monitor, determine or inquire as to compliance
with any restrictions on transfer imposed under this Sixth Supplemental
Indenture or under applicable law with respect to any registrations of transfer
of any interest in any Note (including any transfers between or among members
of, or participants in, the Depositary or beneficial owners of interests in any
Global Security) other than to require delivery of such certificates and other
documentation or evidence as are expressly required by, and to do so if and when
expressly required by the terms of, this Sixth Supplemental Indenture, and to
examine the same to determine substantial compliance as to form with the express
requirements hereof.

           

          ARTICLE
4 

           

          Miscellaneous

           

          Section
4.01.
Amendment to
Section 205 of the Original Indenture. From and after the date of this
Sixth Supplemental Indenture, Section 205 of the Original Indenture shall be
amended by deleting such provision in its entirety and replacing it with the
following:

           

          SECTION 205 Form of Trustee’s
Certificate of Authentication.  The Trustee’s certificates of
authentication shall be in substantially the following form:

           

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

           

          WILMINGTON TRUST
COMPANY,

          AS TRUSTEE

           

           

          By:
__________________________

          Authorized
Officer

           

          Section
4.02.  Execution
as Supplemental Indenture.  This Sixth Supplemental Indenture
is executed and shall be construed as an indenture supplemental to the Original
Indenture and, as provided in the Original Indenture, this Sixth Supplemental
Indenture forms a part thereof. Except as herein expressly otherwise defined,
the use of the terms and expressions herein is in accordance with the
definitions, uses and constructions contained in the Original
Indenture.

           

          Section
4.03.  Responsibility
for Recitals, Etc.  The recitals herein and in the Notes
(except in the Trustee’s certificate of authentication) shall be taken as the
statements of the Company, and the Trustee assumes no responsibility for the
correctness thereof. The Trustee makes no representations as to the validity or
sufficiency of this Sixth Supplemental Indenture or of the Notes. The Trustee
shall not be accountable for the use or application by the Company of the Notes
or of the proceeds thereof.

           

           

           

          
            
              
              

            

            
              9

              
                

              

            

            
              
              

            

             

             

          

          Section
4.04.  Provisions
Binding on Company’s Successors.  All the covenants,
stipulations, promises and agreements in this Sixth Supplemental Indenture
contained by the Company shall bind its successors and assigns whether so
expressed or not.

           

          Section
4.05.  New
York Contract.  THIS SIXTH SUPPLEMENTAL INDENTURE AND EACH NOTE
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK.

           

          Section
4.06.  Execution
and Counterparts.  This Sixth Supplemental Indenture may be
executed with counterpart signature pages or in any number of counterparts, each
of which shall be an original but such counterparts shall together constitute
but one and the same instrument.

           

           

           

           

           

           

           

           

           

           

          
            
              
                 

              

              
                10  

                
                  

                

              

              
                 

              

            

          

           

          
 

          IN WITNESS WHEREOF,
TENNESSEE GAS PIPELINE COMPANY has caused this Sixth Supplemental Indenture to
be executed in its corporate name by its Chairman of the Board or its President
or one of its Vice Presidents, and said WILMINGTON TRUST COMPANY has caused this
Sixth Supplemental Indenture to be executed in its corporate name by one of its
authorized representatives as of January 27, 2009.

          

           

          
            
              	 	      
                      TENNESSEE GAS
      PIPELINE COMPANY

                    	 
	 	 	 	 
	
                       

                    	
                      By:

                    	/s/  John H.
      Hopper	 
	 	 	Name:	John H.
      Hopper	 
	 	 	Title: 	Vice
      President and Treasurer 	 
	 	 	 	 	 

            

          
             

            
              
                	 	      
                              
                          WILMINGTON
      TRUST COMPANY,

                        

                      	 
	 	      
                        AS
      TRUSTEE 

                      	 
	 	 	 
	
                         

                      	
                        By:

                      	/s/  Michael
      G. Oller, Jr.	 
	 	 	Name:	Michael G.
      Oller, Jr.	 
	 	 	Title: 	Assistant
      Vice President	 
	 	 	 	 	 

              

          

           

           

           

           

           

           

           

           

           

           

           

           

           

           

           

          
 

          
            
              
                 

              

              
                 

                
                  

                

              

              
                 

              

            

          

           

          
 

          EXHIBIT
A

          

          [THIS NOTE IS A GLOBAL SECURITY
WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN
THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS NOTE MAY NOT BE TRANSFERRED
TO, OR REGISTERED OR EXCHANGED FOR SECURITIES REGISTERED IN THE NAME OF, ANY
PERSON OTHER THAN THE DEPOSITARY OR A NOMINEE THEREOF AND NO SUCH TRANSFER MAY
BE REGISTERED, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.
EVERY NOTE AUTHENTICATED AND DELIVERED UPON REGISTRATION OF, TRANSFER OF, OR IN
EXCHANGE FOR OR IN LIEU OF, THIS NOTE SHALL BE A GLOBAL SECURITY SUBJECT TO THE
FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

          

          UNLESS THIS NOTE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL IN AS MUCH AS THE REGISTERED OWNER HEREOF, CEDE
& CO., HAS AN INTEREST HEREIN. ]1

          

          [THIS NOTE (OR ITS
PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION
UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE "SECURITIES ACT"), AND THIS
NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.  EACH PURCHASER OF
THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE
EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY
RULE 144A THEREUNDER.

           

          THE HOLDER OF THIS NOTE
AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS NOTE MAY BE OFFERED, RESOLD,
PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) IN THE UNITED STATES TO A PERSON WHOM
THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF
RULE 144A, (II) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN
ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (III) PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144
THEREUNDER (IF AVAILABLE), (IV) PURSUANT TO AN EFFECTIVE REGISTRATION 

           

            

          

          
                  1 Insert in Global
Securities only.

             

            
              
                
                

              

              
                A-1

                
                  

                

              

              
                
                

              

            

          

          STATEMENT UNDER THE
SECURITIES ACT OR (V) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" (AS DEFINED IN
RULE 501(A) (1), (2), (3) OR (7), OF REGULATION D UNDER THE SECURITIES ACT) THAT
IS ACQUIRING THE NOTE FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN
INSTITUTIONAL "ACCREDITED INVESTOR" FOR INVESTMENT PURPOSES AND NOT WITH A VIEW
TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF
THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (V) IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER
WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS
NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN CLAUSE (A)
ABOVE.

           

          THE HOLDER AGREES
THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE OR AN INTEREST HEREIN IS
TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

           

          THE HOLDER AGREES
THAT, BEFORE THE HOLDER OFFERS, SELLS OR OTHERWISE TRANSFERS THIS NOTE,
TENNESSEE GAS PIPELINE COMPANY MAY REQUIRE THE HOLDER OF THIS NOTE TO DELIVER A
WRITTEN OPINION, CERTIFICATIONS AND/OR OTHER INFORMATION THAT IT REASONABLY
REQUIRES TO CONFIRM THAT SUCH PROPOSED TRANSFER IS BEING MADE PURSUANT TO AN
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

           

          AS USED IN THIS NOTE, THE TERMS
“OFFSHORE TRANSACTION,” “U.S. PERSON” AND “UNITED STATES” HAVE THE MEANINGS
GIVEN TO THEM BY RULE 902 OF REGULATION S UNDER THE SECURITIES ACT.]2

          

          THIS NOTE IS ISSUED
WITH ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTION 1271 ET SEQ. OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED, AND THE RULES AND REGULATIONS
THEREUNDER. FOR EACH $1,000 PRINCIPAL AMOUNT OF THIS NOTE, (1) THE ISSUE
PRICE IS $948.81; (2) THE AMOUNT OF THE ORIGINAL ISSUE DISCOUNT IS $51.19;
(3) THE ISSUE DATE IS JANUARY 27, 2009; AND (4) THE YIELD TO MATURITY
IS 9.000% PER ANNUM.

          
             

            
              

            

          

          
            
                  2 Insert in Restricted
Securities only.

               

            

          

          
            
              
              

            

            
              A-2

              
                

              

            

            
              
              

            

             

             

          

          TENNESSEE GAS
PIPELINE COMPANY

          

          8.000% NOTE DUE
2016

          

          

          NO.______                                                                                                                                                          U.S.$__________

          CUSIP
No.  _____

          

                TENNESSEE GAS PIPELINE COMPANY, a
corporation duly incorporated and existing under the laws of Delaware (herein
called the “Company,”
which term includes any successor Person under the Indenture hereinafter
referred to), for value received, hereby promises to pay to [Cede &
Co.]3, or registered assigns, the
principal sum of ___________________ United States Dollars[, subject to the
increases and decreases set forth in Schedule I hereto]3
on February 1, 2016, and to pay interest thereon from January 27, 2009,
or from the most recent Interest Payment Date to which interest has been paid or
duly provided for, semi-annually on February 1 and August 1 in each year,
commencing August 1, 2009 (each, an “Interest
Payment Date”), at the rate of 8.000% per annum, until the principal
hereof is paid or made available for payment. The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as
provided in such Indenture, be paid to the Person in whose name this Security
(or one or more Predecessor Securities) is registered at the close of business
on the regular record date for such interest, which shall be the January 15 or
July 15 (whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date (each, a “Regular
Record Date”). Any such interest not so punctually paid or duly provided
for shall forthwith cease to be payable to the Holder on such Regular Record
Date and shall either be paid to the Person in whose name this Security (or one
or more Predecessor Securities) is registered at the close of business on a
special record date for the payment of such Defaulted Interest to be fixed by
the Trustee (a “Special
Record Date”), notice of which shall be given to Holders of Securities of
this series not less than 10 days prior to such Special Record Date, or be paid
at such time in any other lawful manner not inconsistent with the requirements
of any securities exchange on which the Securities of this series may be listed,
and upon such notice as may be required by such exchange, all as more fully
provided in such Indenture.

           

          [The Company is a party to the
Registration Rights Agreement, dated as of January 27, 2009, among the Company
and Banc of America Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche
Bank Securities Inc., and Greenwich Capital Markets, Inc., on behalf of the
initial purchasers of the Notes (the “Registration
Rights Agreement”).  In the event that a Registration Default
(as defined in the Registration Rights Agreement) occurs, the Company shall pay
additional interest (in addition to the interest otherwise due hereon) (“Additional
Interest”) to the Holder during the first 90-day period immediately
following the occurrence of any such 

          
             

              
                

              

                    3 Insert in Global
Securities only.

               

               

            

          

           

          
            
              
              

            

            
              A-3

              
                

              

            

            
              
              

            

             

             

          

          Registration
Default in an amount equal to 0.25% per annum (regardless of the number of
Registration Defaults), increasing by 0.25% per annum with respect to each
subsequent 90-day period, up to a maximum of 1.00% per annum, from and including
the date on which any such Registration Default shall occur (subject to the
terms of the Registration Rights Agreement) to but excluding the earlier of (1)
the date on which all such Registration Defaults have been cured or (2) the date
on which all the Notes otherwise become freely transferable by Holders other
than affiliates of the Company without further registration under the Securities
Act.  The Company shall pay amounts due in respect of Additional
Interest on each Interest Payment Date (or, if the Company shall default in the
payment of interest on any Interest Payment Date, on the date such interest is
otherwise paid as provided in the Indenture).]4

                  

                 Payment of the principal of and
premium, if any, and interest on this Security will be made by transfer of
immediately available funds to a bank account in New York, New York designated
by the Holder in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debts.]5

          

          [Payment of the principal of (and
premium, if any) and interest on this Security will be made at the office or
agency of the Company maintained for that purpose in the Borough of Manhattan,
The City of New York, in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private
debts, or at such other offices or agencies as the Company may designate; provided,
however,
that payment of interest may be made at the option of the Company by check
mailed to the addresses of the Persons entitled thereto as such addresses shall
appear in the Security Register.]6

          
 

          Reference is hereby made to the
further provisions of this Security set forth on the reverse hereof, which
further provisions shall for all purposes have the same effect as if set forth
at this place.

          
 

          Unless the certificate of
authentication hereon has been executed by the Trustee referred to on the
reverse hereof by manual signature, this Security shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any
purpose.

          
  

            
              

            

          

               4 Insert in Restricted
Securities only.

             

                 5
Insert in Global Securities only.

             

                6
Insert in Definitive Securities only.

          

           

           

           

          

          
            
              
                 

              

              
                A-4

                
                  

                

              

              
                 

              

            

          

           

           

          
 

          IN WITNESS WHEREOF,
the Company has caused this instrument to be duly executed.

          
Dated:

          
 

          TENNESSEE GAS
PIPELINE COMPANY

          
 

          By_________________________

          Name:______________________

          Title:_______________________

          
 

          
 

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

          
 

          WILMINGTON TRUST
COMPANY,

          AS
TRUSTEE

          
 

          By_________________________

          Name:______________________

          Title:_______________________

           

          

          
            
              
                 

              

              
                A-5

                
                  

                

              

              
                 

              

            

          

          

          

          TENNESSEE GAS
PIPELINE COMPANY

          8.000% NOTE DUE
2016

          

          This Security is one of a duly
authorized issue of Securities of the Company (the “Securities”),
issued and to be issued in one or more series under an Indenture ated as of
March 4, 1997 (the “Indenture”),
between the Company and Wilmington Trust Company (as successor to JPMorgan Chase
Bank (formerly known as The Chase Manhattan Bank)), as Trustee (the “Trustee,”
which term includes any successor trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights, limitations of rights, obligations, duties
and immunities thereunder of the Company, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. As provided in the Indenture, the Securities may be
issued in one or more series, which different series may be issued in various
aggregate principal amounts, may provide for re-opening in the future to issue
additional Securities of the series without the consent or approval of the
holders of Outstanding Securities, may mature at different times, may bear
interest, if any, at different rates, may be subject to different redemption
provisions, if any, may be subject to different sinking, purchase or analogous
funds, if any, may be subject to different covenants and Events of Default and
may otherwise vary as in the Indenture provided or permitted. This Security is
one of a series of Securities designated on the face hereof limited in aggregate
principal amount to U.S. $250,000,000 (subject to Securities authenticated and
delivered as provided in the following paragraph or upon registration of
transfer of, or in exchange for, or in lieu of, other Securities of this series
pursuant to Section 304, 305, 306, 906 or 1107 under the
Indenture).

           

                     This series of Securities may be
reopened, without the consent of the Holders thereof, for increases in the
aggregate principal amount of the Securities and issuance of additional
Securities of this series ranking equally with these Securities in all respects,
so that such additional Securities shall be consolidated and form a single
series with these Securities and shall have the same terms as to status,
redemption or otherwise as these Securities, provided,
however,
that no Event of Default has occurred or is continuing with respect to such
Securities.

           

          The Securities of this series are
redeemable, upon not less than 30 nor more than 60 days’ notice, in whole or in
part, at the option of the Company at any time in whole, or from time to time in
part (in integral multiples of $1,000 principal amount), prior to the Stated
Maturity, at a price equal to the greater of (i) 100% of the principal amount
thereof and (ii) as determined by an Independent Investment Banker, the sum of
the present values of the remaining scheduled payments of principal and interest
thereon (not including any portion of such payments of interest accrued as of
the Redemption Date) discounted back to the Redemption Date on a semi-annual
basis (assuming a 360-day year consisting of twelve 30-day months) at the
Treasury Rate (as defined below) plus 0.50% (the “Make-Whole
Price”); plus, in each case, accrued and unpaid interest thereon to the
Redemption Date, but interest installments whose Stated Maturity is on or prior
to such Redemption Date will be payable to the Holders of such Securities, or
one or more Predecessor Securities, of record at the close of business on the
relevant Record Dates referred to on the face hereof, all as provided in the
Indenture.

           

           

           

          
            
              
              

            

            
              A-6

              
                

              

            

            
              
              

            

             

             

          

          The notice of
redemption shall set forth the manner of calculation of the Make-Whole Price,
but not necessarily its amount.  The Company shall notify the Trustee
of the amount of the Make-Whole Price with respect to any redemption promptly
after the calculation thereof, and the Trustee shall not be responsible for the
accuracy of the calculation.  Unless the Company defaults in payment
of the Make-Whole Price, on and after the applicable Redemption Date, interest
will cease to accrue on the Notes or portions thereof called for redemption. In
the event of redemption or repurchase of this Security in part only, a new
Security or Securities of this series and of like tenor for the unredeemed or
unpurchased portion hereof will be issued in the name of the Holder hereof upon
the presentation and surrender hereof.

          

          “Comparable
Treasury Issue” means the United States Treasury security selected by an
Independent Investment Banker as having a maturity comparable to the remaining
term of the Securities to be redeemed that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of comparable maturity to the remaining term
of the Securities.

          

          “Comparable
Treasury Price” means, with respect to any Redemption Date, (1) the
average of four Reference Treasury Dealer Quotations for such Redemption Date,
after excluding the highest and lowest of such Reference Treasury Dealer
Quotations, or (2) if the Trustee obtains fewer than four such Reference
Treasury Dealer Quotations, the average of all such Reference Treasury Dealer
Quotations.

          

          “Independent
Investment Banker” means Deutsche Bank Securities Inc., Banc of America
Securities LLC, Credit Suisse Securities (USA) LLC, and reenwich Capital
Markets, Inc. and their successors, or, if such firm or the successors, if any,
to such firm, as the case may be, are unwilling or unable to select the
Comparable Treasury Issue, an independent investment banking institution of
national standing appointed by the Trustee after consultation with the
Company.

          

          “Reference
Treasury Dealer” means Deutsche Bank Securities Inc., Banc of America
Securities LLC, Credit Suisse Securities (USA) LLC, and Greenwich Capital
Markets, Inc., and their respective successors (provided, however, that if any
such firm or any such successor, as the case may be, shall cease to be a primary
U.S. government securities dealer in New York City, the Trustee, after
consultation with the Company, shall substitute therefor another
dealer).

          

          “Reference
Treasury Dealer Quotations” means, with respect to each Reference
Treasury Dealer and any Redemption Date, the average, as determined by the
Trustee, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m. on the
third Business Day preceding such Redemption
Date.

        

      

    

     

     

    

    
      
        
        

      

      
        A-7

        
          

        

      

      
        
        

      

       

       

    

    “Treasury
Rate” means, with respect to any Redemption Date, (1) 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 that is published weekly by the Board
of Governors of the Federal Reserve System and that 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 Comparable Treasury Issue (if no maturity is within three months before
or after the Stated Maturity, yields for the two published maturities most
closely corresponding to the Comparable Treasury Issue shall be determined, and
the Treasury Rate shall be interpolated or extrapolated from such yields on a
straight-line basis, rounding to the nearest month) or (2) if such release (or
any successor release) is not published during the week preceding the
calculation date or does not contain such yields, the rate per annum equal to
the semi-annual equivalent yield to maturity of the Comparable Treasury Issue,
calculated using a price for the Comparable Treasury Issue (expressed as a
percentage of its principal 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.

     

    If a Change of
Control Triggering Event occurs, unless the Company has exercised its option to
redeem all Securities of this series then outstanding, the Company will make an
offer to each Holder of Securities of this series to repurchase all or any part
(in integral multiples of $1,000) of that Holder’s Securities of this series at
a repurchase price in cash equal to 101% of the aggregate principal amount of
the Securities of this series repurchased plus any accrued and unpaid interest
on the Securities of this series repurchased to the date of purchase. Within 30
days following any Change of Control Triggering Event or, at the Company’s
option, prior to any Change of Control, but after the public announcement of the
Change of Control, the Company will mail a notice to each Holder, with a copy to
the Trustee, describing the transaction or transactions that constitute or may
constitute the Change of Control Triggering Event and offering to repurchase
Securities of this series on the payment date specified in the notice, which
date will be no earlier than 30 days and no later than 60 days from the date
such notice is mailed (the “Change
of Control Payment Date”).  The notice shall, if mailed prior
to the date of consummation of the Change of Control, state that the offer to
purchase is conditioned on the Change of Control Triggering Event occurring on
or prior to the payment date specified in the notice.  To the extent
that the provisions of any securities laws or regulations conflict with the
Change of Control Triggering Event provisions of the Securities of this series,
the Company will comply with the applicable securities laws and regulations and
will not be deemed to have breached its obligations under the Change of Control
Triggering Event provisions of the Securities of this series by virtue of such
conflict.

     

    On the Change of
Control Payment Date, the Company will, to the extent lawful:

     

    (1)           accept
for payment all Securities of this series or portions of Securities of this
series properly tendered pursuant to the offer;

     

    (2)           deposit
with the Paying Agent an amount equal to the aggregate purchase price in respect
of all Securities of this series or portions of Securities of this series
properly tendered; and

     

     

    
      
        
        

      

      
        A-8

        
          

        

      

      
        
        

      

       

       

    

    (3)           deliver
or cause to be delivered to the Trustee the Securities of this series properly
accepted, together with an officers’ certificate stating the aggregate principal
amount of Securities of this series being purchased by the Company.

     

    The Company will
not be required to make an offer to repurchase the Securities of this series
upon a Change of Control Triggering Event if a third party makes such an offer
in the manner, at the times and otherwise in compliance with the requirements
for an offer made by the Company and such third party purchases all Securities
of this series properly tendered and not withdrawn under its offer.

     

    “Change
of Control” means the occurrence of any of the following:

     

    (1) the direct or
indirect sale, lease or exchange (other than by way of merger or consolidation),
in one transaction or a series of related transactions, of all or substantially
all of the assets of the Company and its Subsidiaries taken as a whole to any
“person” (as that term is used in Section 13(d)(3) of the Securities Exchange
Act of 1934, as amended) other than the Company or one of its Subsidiaries;
or

     

    (2)           the
consummation of any transaction (including, without limitation, any merger or
consolidation) the result of which is that any “person” (as defined above),
other than El Paso Corporation and its Subsidiaries, becomes the beneficial
owner, directly or indirectly, of more than 50% of the Company’s Voting Stock,
measured by voting power rather than number of shares.

     

    “Change
of Control Triggering Event” means (a) the occurrence of a Change of
Control and (b) during the period beginning on the earlier of (i) the date of
the public notice of the Company’s intention to effect such Change of Control
and (ii) the occurrence of such Change of Control and ending 90 days after the
occurrence of such Change of Control, (x) if three Rating Agencies are
continuing to provide ratings for the Securities of this series on such date,
more than one of the Rating Agencies rating the Securities of this series at
such time shall downgrade, below the rating as of January 27, 2009, its
respective rating of the Securities of this series as a result of such Change of
Control, (y) if fewer than three Rating Agencies are continuing to provide
ratings for the Securities of this series on such date, any of the Rating
Agencies rating the Securities of this series at such time shall downgrade,
below the rating as of the date of the supplemental indenture establishing the
terms of the Securities of this series, its respective rating of the Securities
of this series as a result of such Change of Control, or (z) no Rating Agency
provides a rating for the Securities of this series.

     

    “Fitch”
means Fitch Inc.

     

    “Moody’s”
means Moody’s Investor Services Inc.

     

    “Rating
Agency” means (1) each of Moody’s, S&P and Fitch; and (2) if any of
Moody’s, S&P or Fitch ceases to rate the Securities of this series or fails
to make a rating of the Securities of this series publicly available for reasons
outside of the Company’s control, a “nationally recognized statistical rating
organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the
Securities Exchange Act of 1934, as amended, selected by the Company (as
certified by a resolution of the Company’s board of directors) as a replacement
agency for Moody’s, S&P or Fitch, or all, as the case may be.

     

     

     

    
      
        
        

      

      
        A-9

        
          

        

      

      
        
        

      

       

       

    

    “S&P”
means Standard & Poor’s Ratings Services, a division of McGraw-Hill,
Inc.

     

    “Voting
Stock” of any specified “person” (as defined above) as of any date means the
capital stock of such person that is at the time entitled to vote generally in
the election of the board of directors of such person.

     

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

     

    The Indenture permits, with certain
exceptions as therein provided, the amendment thereof and the modification of
the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the
Company and the Trustee with the consent of the Holders of a majority in
aggregate principal amount of the Outstanding Securities of all series to be
affected (voting as one class).  The Indenture also contains
provisions permitting the Holders of a majority in aggregate principal amount of
the Outstanding Securities of all affected series (voting as one class), on
behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture. The Indenture permits,
with certain exceptions as therein provided, the Holders of a majority in
aggregate principal amount of Securities of all affected series then Outstanding
(voting as a single class) to waive past defaults under the Indenture with
respect to such Securities and their consequences. Any such consent or waiver by
the Holder of this Security shall be conclusive and binding upon such Holder and
upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this
Security.

     

    As provided in and subject to the
provisions of the Indenture, the Holder of this Security shall not have the
right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless
such Holder shall have previously given the Trustee written notice of a
continuing Event of Default with respect to the Securities of this series, the
Holders of not less than 25% in principal amount of the Securities of all
affected series at the time Outstanding (treated as a single class) shall have
made written request to the Trustee to institute proceedings in respect of such
Event of Default as Trustee and offered the Trustee reasonable indemnity and the
Trustee shall not have received from the Holders of a majority in principal
amount of the Securities of this series at the time Outstanding a direction
inconsistent with such request, and shall have failed to institute any such
proceeding, for 60 days after receipt of such notice, request and offer of
indemnity. The foregoing shall not apply to any suit instituted by the Holder of
this Security for the enforcement of any payment of principal hereof or interest
hereon on or after the respective due dates expressed
herein.

     

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

     

     

    
 

    
      
        
        

      

      
        A-10

        
          

        

      

      
        
        

      

       

       

    

    [This Global Security or portion
hereof may not be exchanged for Definitive Securities except in the limited
circumstances provided in the Indenture.

     

    The holders of beneficial interests
in this Global Security will not be entitled to receive physical delivery of
Definitive Securities except as described in the Indenture and will not be
considered the Holders hereof for any purpose under the Indenture.]7

     

    [As provided in the Indenture and
subject to certain limitations set forth, the transfer of this Security is
registerable in the Security Register, upon surrender of this Security for
registration of transfer at the office or agency of the Company in the Borough
of Manhattan, The City of New York or at such other offices or agencies as the
Company may designate, duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Security Registrar duly
executed by, the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Securities of this series and of like tenor, of
authorized denominations and for a like aggregate principal amount, will be
issued to the designated transferee or transferees.]8

     

    The Securities of this series are
issuable only in registered form, without coupons, in denominations of U.S.
$2,000 and integral multiples of $1,000. As provided in the Indenture and
subject to certain limitations therein set forth, the Securities of this series
are exchangeable for a like aggregate principal amount of Securities of this
series and of like tenor of a different authorized denomination, as requested by
the Holder surrendering the same.

     

    No service charge shall be made for
any such registration of transfer or exchange, but the Company may require
payment of a sum sufficient to cover any transfer tax or other similar
governmental charge payable in connection therewith.

     

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

     

    No recourse under or upon any
obligation, covenant or agreement of or contained in the Indenture or of or
contained in any Security, or for any claim based thereon or otherwise in
respect thereof, or in any Security, or because of the creation of any
indebtedness represented thereby, shall be had against any incorporator,
stockholder, officer or director, as such, past, present or future, of the
Company or of any successor Person, either directly or through the Company or
any successor Person, whether by virtue of any constitution, statute or rule of
law, or by the enforcement of any assessment, penalty or otherwise; it being
expressly understood that all such liability is hereby expressly waived and
released by the acceptance hereof and as a condition of, and as part of the
consideration for, the Securities and the execution of the
Indenture.

     

    
      
        

      

      
            7 Insert in Global
Securities only.

          

        
              8 Insert in
Definitive Securities only.

           

           

           

        

      

      
        
          
          

        

        
          A-11

          
            

          

        

        
          
          

        

         

         

      

      The Securities of this series shall
be subject to defeasance at the option of the Company in accordance with the
provisions of Sections 1302 and 1303 of the Indenture.  The Indenture
provides that the Company (a) will be discharged from any and all obligations in
respect of the Securities of this series (except for certain obligations
described in the Indenture), or (b) need not comply with certain restrictive
covenants of the Indenture, in each case if the Company deposits, in trust, with
the Trustee money or U.S. Government Obligations (or a combination thereof)
which through the payment of interest thereon and principal thereof in
accordance with their terms will provide money, in an amount sufficient to pay
all the principal of and interest of the Securities of this series, but such
money need not be segregated from other funds except to the extent required by
law.

       

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

       

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

       

       

       

      
        
          
             

          

          
            A-12  

            
              

            

          

          
             

          

        

      

       

      
 

      [FORM OF TRANSFER
NOTICE]

       

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

       

      
        	 
    
	
                (Please Print
      or Typewrite Name and Address of
Assignee)

              

      

       

      the within
instrument of TENNESSEE GAS PIPELINE COMPANY and does hereby irrevocably
constitute and appoint _______________________________ Attorney to transfer said
instrument on the books of the within-named Company, with full power of
substitution in the premises.

       

      
        	
                 Insert
      Taxpayer Identification No.

              
	 
    

      

      
 

       

      Date:
_______________

      
 

      Signature:
____________________________________________

      

      
        
          
             

          

          
            A-13  

            
              

            

          

          
             

          

        

      

      

      TENNESSEE
GAS PIPELINE COMPANY

       

      No.
____                      8.000%
NOTE DUE 2016

      

      SCHEDULE
I9

       

      The following
increases or decreases in this Global Security have been made:

       

       

      
        	
                
                  Date
      of increase or decrease and reason for the change in principal
      amount

                

              	
                
                  Amount
      of decrease

                  in
      principal amount

                  of
      this Global Security

                

              	
                
                  Amount
      of increase

                  in
      principal amount

                  of
      this Global Security

                

              	
                
                  Principal
      amount of

                  this
      Global Security

                  following
      such

                  decrease
      (or

                  increase)

                

              	
                
                  Signature
      of

                  authorized
      officer of

                  Trustee

                

              
	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    

      

      
 

      
         

        
          
            

          
      9
Insert in Global Securities only

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