Document:

ex4_7.htm

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        EXHIBIT
4.7

         

        [Conformed
copy]

      

       

      Central
Vermont Public Service Corporation

       

      Forty-Sixth
Supplemental Indenture

       

      Dated as
of May 1, 2008

       

       

      Amending
and Supplementing the

      Central
Vermont Public Service Corporation Indenture of Mortgage

       

      Dated as
of October 1, 1929

      
         

         

         

      

       

      Recording
Information

       

      _____________________________________
Town Clerk’s Office — Received this Forty-Sixth Supplemental Indenture
for record on the _____ day of May, 2008, at ________ O’clock, _. M., and filed
the bound copy as Book ___________ in accordance with T 24 VSA,
Section 1155, and cross-indexed in the Land Records in Book _________
at Page ______.

       

      
        	
                 
      

              	
                Attest: 
      ______________________________________________________________________

              

      

      
        	
                 
      

              	
                Town
      Clerk

              

      

       

      
        
          
            Exhibit
A

            (to Bond
Purchase Agreement)

          

           

        

        
           

          
            

          

        

        
           

        

      

       

       

      This
Forty-Sixth Supplemental Indenture is dated as of May 1, 2008 (hereinafter
referred to as the “Supplemental
Indenture”) and entered into by and between Central Vermont Public
Service Corporation, a corporation duly organized and existing under and by
virtue of the laws of the State of Vermont, having offices at 77 Grove Street,
Rutland, Vermont 05701 (hereinafter referred to as the “Company”),
and U.S. Bank National Association, a national banking association (successor to
Old Colony Trust Company as trustee and other successor trustees), having an
office at 225 Asylum St., Hartford, CT  06103, as Trustee (hereinafter
generally referred to as the “Trustee”),
with reference to the following Recitals:

       

      Recitals

       

      WHEREAS,
the Company has heretofore executed and delivered to Old Colony Trust Company,
as Trustee its Indenture of Mortgage dated as of October 1, 1929
(hereinafter sometimes referred to as the “Original
Indenture”) and has executed and delivered to said trustee and various
successors, as the case may be, forty-five indentures supplemental thereto (the
Original Indenture, as heretofore amended and supplemented by such forty-five
indentures thereto, and as further supplemented by this Supplemental Indenture
is referred to herein as the “Indenture”
and capitalized terms used herein not otherwise defined shall have the
meaning set forth in the Indenture); and

       

      WHEREAS,
pursuant to the Indenture, all the properties of the Company, whether owned at
the time of the execution thereof or thereafter acquired, with certain
exceptions and reservations therein fully set forth, were granted, assigned,
transferred, mortgaged and pledged to the Trustee, in trust upon the terms and
conditions set forth therein, to secure bonds of the Company issued and to be
issued in accordance with the terms of the Indenture and for other purposes more
particularly set forth therein; and

       

      WHEREAS,
Section 2.06 of the Indenture provides that the Company may issue a series
of additional Bonds and shall execute and deliver a supplemental indenture for
such series and thereafter Bonds of such series may be issued from time to time
subject to the conditions and provisions of the Indenture; and

       

      WHEREAS,
the Company proposes to issue under the Indenture $60,000,000 in aggregate
principal amount of First Mortgage 6.83% Bonds, Series UU, due May 15,
2028 (herein referred to as the “Bonds”),
which series (subject to the restrictions and provisions contained in the
Indenture) is limited to such aggregate principal amount ; and

       

      WHEREAS,
this Supplemental Indenture has been duly and legally authorized by the Board of
Directors of the Company in a Board Resolution, and the use of terms and
provisions contained herein is in accordance with the Indenture;
and

       

      WHEREAS,
the Bonds have been duly authorized by a Board Resolution (a certified copy of
which is on file with the Trustee) designating and authorizing the Bonds and the
Bonds are to be redeemable as set forth in the respective form of such Bonds;
and

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      WHEREAS,
the Bonds and the Trustee’s authentication certificate thereon are to be
substantially in the forms set forth in Exhibit A hereto; and

       

      WHEREAS,
the Company previously amended Section 5.15 of the Indenture, as restated in the
44th Supplemental Indenture, dated as of June 15, 2004, relating to the
requirement that the Company’s independent certified public accountants provide
an annual “no default” certificate, and to substantially restore the language
from the Indenture that applied before said 44th Supplemental Indenture to
assure that the form of certificate that the Company’s independent auditors
provide will continue to comply with this requirement; and

       

      WHEREAS,
in accordance with said Section 9.02 of the Indenture, the holders of not less
than sixty-six and two-thirds per centum (66-2/3%) in principal amount of all
the bonds issued under the Mortgage and outstanding as of the date thereof
previously consented to the execution and delivery of this instrument pursuant
to a Consent and Agreement, dated as of June 30, 2005; and

       

      WHEREAS,
in accordance with said Section 8.02 of the Indenture, the Trustee has deemed
sufficient the date and execution of such Consent and Agreement and the amount
and numbers or other designations of Bonds held by the persons so executing such
Consent and Agreement; and,

       

      WHEREAS,
the Company has determined that all conditions and requirements necessary to
make this Supplemental Indenture, in the form and terms hereof, a valid, binding
and legal agreement in accordance with its terms and the purposes herein
expressed, have been performed and fulfilled, and the execution and delivery
hereof have been in all respects duly authorized; and

       

      NOW,
THEREFORE, in confirmation of and supplementing the Indenture and pursuant to,
in compliance with and in execution of, the powers and obligations conferred,
imposed and reserved therein and every other power, authority and obligation
appertaining thereto, in consideration of the premises, and of the acceptance
and purchase of the Bonds by the holders thereof, and of the sum of One Dollar
duly paid by the Trustee to the Company and of other good and valuable
consideration, the receipt whereof is hereby acknowledged, the Company has
given, granted, bargained, sold, transferred, assigned, pledged, mortgaged,
warranted, conveyed and confirmed and by these presents does give, grant,
bargain, sell, transfer, assign, pledge, mortgage, warrant, convey and confirm
unto the Trustee, as herein provided, and its successor or successors in the
trust hereby created, the following described property, rights, titles and
interests of the Company and grants a security interest therein as permitted by
applicable law: all and singular the plants, rights, accounts, permits,
franchises, privileges, easements and property, real, personal and mixed, now
owned by the Company or which may hereafter be acquired by it, together with the
rents, issues and profits thereof, including, without limiting the generality of
the foregoing, all real property specifically described in Schedule I to
the Indenture and in Schedule A hereto, excepting, however, and there are
hereby expressly reserved from the lien and effect of the Indenture, all
Excepted Property (as defined in the Indenture), provided,
however, that if an Event of Default as defined in Section 6.01 of
the Indenture shall happen and be continuing and if thereafter the Trustee or a
receiver or trustee shall enter upon and take possession of the Mortgaged
Property, as defined in the Indenture, such Trustee or receiver or trustee may,
to the extent not prohibited by law, take possession of any and all of the
Excepted 

      
        
          
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      Property
then on hand and use and administer and consume the same to continue the
operations of the Mortgaged Property in all respects as if such Excepted
Property were part of the Mortgaged Property, accounting therefor, if required
by law, to such persons, if any, as may be lawfully entitled to such an
accounting.

       

      SUBJECT,
HOWEVER, to Permitted Encumbrances (as defined in Section 1.02 of the
Indenture).

       

      TO HAVE
AND TO HOLD, all said property hereby conveyed, assigned, pledged or mortgaged,
or intended to be conveyed, assigned, pledged or mortgaged, together with the
rents, issues and profits thereof, as well as all such after-acquired property,
unto the Trustee, its successor or successors in trust and its assigns
forever.

       

      BUT IN
TRUST, NEVERTHELESS, for the equal and proportionate benefit and security of the
holders of all Bonds now or hereafter issued hereunder, pursuant to the
provisions hereof, and for the enforcement of the payment of said Bonds when
payable and the performance of and compliance with the covenants and conditions
of the Indenture, without any preference, distinction or priority as to lien or
otherwise of any Bond or Bonds over others by reason of the difference in time
of the actual issue, sale or negotiation thereof or for any other reason
whatsoever, except as herein otherwise expressly provided; but so that each and
every Bond now or hereafter issued hereunder shall have the same lien, and so
that the interest and principal of every such Bond shall, subject to the terms
hereof, be equally and proportionately secured hereby, as if it had been made,
executed, delivered, sold and negotiated simultaneously with the execution and
delivery hereof.

       

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

       

      Article
One

      Terms
of the Bonds

       

      Section 1.    
All Bonds shall be dated the date of issue, except as otherwise provided
in Section 2.08 of Article Two of the Indenture.  The Bonds shall
be in denominations which are multiples of $1,000.  The Bonds shall
bear interest (computed on the basis of a 360-day year of twelve 30-day months)
at the rate of 6.83 percent (6.83%) per annum payable semi-annually at the
corporate trust office of the Trustee in the City of Hartford, Connecticut (or,
if there be a successor to said Trustee, at its designated corporate trust
office) or directly to the registered Bondholders pursuant to Section 5.01 of
the Indenture on the fifteenth day of May and November of each year, commencing
on November 15, 2008, shall mature May 15, 2028, and shall be
redeemable as hereinafter provided, provided,
however, that the Bonds shall bear interest on any overdue principal,
Make-Whole Amount (defined below), if any, and on overdue interest (to the
extent permitted by law) at a rate of 7.83% per annum.  The Bonds and
the Trustee’s certificate of authentication shall be substantially in the form
set forth in Exhibit A hereto.

      
        
          
            -3-

          

           

        

        
           

          
            

          

        

        
           

        

      

       

          Section
2.     The Bonds shall be redeemable at the option of
the Company in whole, or in part, at any time, in an amount not less than 5% of
the aggregate principal amount of the Bonds then outstanding in the case of a
partial redemption, upon the notice and in the manner provided in
Article Twelve of the Indenture, at 100% of the principal amount of the
Bonds to be redeemed and interest thereon to the redemption date plus a premium
equal to the Make-Whole Amount, which shall be determined two Business Days
prior to the date of such redemption and certified in writing to the
Trustee.

       

          The term
“Make-Whole
Amount” means, with respect to any Bond, an amount equal to the excess,
if any, of the Discounted Value of the Remaining Scheduled Payments with respect
to the Called Principal of such Bond over the amount of such Called Principal,
provided that the Make-Whole Amount may in no event be less than
zero.  For the purposes of determining the Make-Whole Amount, the
following terms have the following meanings:

       

      “Called
Principal” means, with respect to any Bond, the principal of such Bond
that is to be redeemed pursuant to this Section 2 or has become or is
declared to be immediately due and payable pursuant to Section 6.01 of the
Indenture.

       

      “Discounted
Value” means, with respect to the Called Principal of any Bond, the
amount obtained by discounting all Remaining Scheduled Payments with respect to
such Called Principal from their respective scheduled due dates to the
Settlement Date with respect to such Called Principal, in accordance with
accepted financial practice and at a discount factor (applied on the same
periodic basis as that on which interest on the Bonds is payable) equal to the
Reinvestment Yield with respect to such Called Principal.

       

      “Reinvestment
Yield” means, with respect to the Called Principal of any Bond, 0.50%
over the
yield to maturity implied by (i) the yields reported as of 10:00 a.m. (New
York City time) on the second Business Day preceding the Settlement Date with
respect to such Called Principal, on the display  designated as “Page
PX1” (or such other display as may replace Page PX1) on Bloomberg Financial
Markets for the most recently issued actively traded on the run U.S. Treasury
securities having a maturity equal to the Remaining Average Life of such Called
Principal as of such Settlement Date, or (ii) if
such yields are not reported as of such time or the yields reported as of such
time are not ascertainable (including by way of interpolation), the Treasury
Constant Maturity Series Yields reported, for the latest day for which such
yields have been so reported as of the second Business Day preceding the
Settlement Date with respect to such Called Principal, in Federal Reserve
Statistical Release H.15 (or any comparable successor publication) for U.S.
Treasury securities having a constant maturity equal to the Remaining Average
Life of such Called Principal as of such Settlement
Date.  

       

      In the
case of each determination under clause (i) or clause (ii), as the
case may be, of the preceding paragraph, such implied yield will be determined,
if necessary, by (a) converting U.S. Treasury bill quotations to bond
equivalent yields in accordance with accepted financial practice and
(b) interpolating linearly between (1) the applicable U.S. Treasury
security with the maturity closest to and greater than such Remaining Average
Life and (2) the applicable U.S. Treasury security with the maturity
closest to and less

      
        
          
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      than such
Remaining Average Life.  The Reinvestment Yield shall be rounded to
the number of decimal places as appears in the interest rate of the applicable
Bond

       

      “Remaining
Average Life” means, with respect to any Called Principal, the number of
years (calculated to the nearest one-twelfth year) obtained by dividing (i) such
Called Principal into (ii) the sum of the products obtained by multiplying (a)
the principal component of each Remaining Scheduled Payment with respect to such
Called Principal by (b) the number of years (calculated to the nearest
one-twelfth year) that will elapse between the Settlement Date with respect to
such Called Principal and the scheduled due date of such Remaining Scheduled
Payment.

       

      “Remaining
Scheduled Payments” means, with respect to the Called Principal of any
Bond, all payments of such Called Principal and interest thereon that would be
due after the Settlement Date with respect to such Called Principal if no
payment of such Called Principal were made prior to its scheduled due date,
provided
that if such Settlement Date is not a date on which interest payments are due to
be made under the terms of the Bonds, then the amount of the next succeeding
scheduled interest payment will be reduced by the amount of interest accrued to
such Settlement Date and required to be paid on such Settlement Date pursuant to
Section 2 of the Supplemental Indenture or Section 6.01 of the Indenture,
as the context requires.

       

      “Settlement
Date” means, with respect to the Called Principal of any Bond, the date
on which such Called Principal is to be redeemed pursuant to this Section 2
has become or is declared to be immediately due and payable pursuant to
Section 6.01 of the Indenture, as the context requires.

       

      In the
event the Company shall exercise any right to make a redemption of the Bonds
under this Section 2, it shall give written notice thereof to the Trustee
and holders of the Bonds being called for redemption as provided in Section
12.03 of the Indenture.  In the case of a redemption under this
Section 2, at least thirty (30) days prior to the date fixed for redemption
the Company will furnish written notice to the Trustee and each holder of the
Bonds being called for redemption by telecopy or other same-day communication,
of the estimated Make-Whole Amount, if any, applicable to such redemption and
the calculations, in reasonable detail, used to determine the amount of such
Make-Whole Amount and two Business Days prior to the Settlement Date for such
redemption, the Company will furnish written notice in the foregoing manner to
the Trustee and each holder of the Bonds being called for redemption of the
Make-Whole Amount, if any, applicable to such redemption which is payable on the
Settlement Date with respect to the related Called Principal, and the
calculations used to determine such Make-Whole Amount.

       

          Section
3.     Anything in the Indenture or the Bonds to the
contrary notwithstanding, any payment of principal, or premium, if any, or
interest on the Bonds that is due on a date other than a Business Day shall be
made on the next succeeding Business Day without including the additional days
elapsed in the computation of the interest payable on such next succeeding
Business Day.

      
        
          
            -5-

          

           

        

        
           

          
            

          

        

        
           

        

      

       

          Section
4.     Pursuant to Section 5.01 of the Indenture, so
long as the original registered holders or any subsequent registered holder of
the Bonds is an Institutional Investor, all payments of interest on the Bonds
held by such holder and all payments on account of principal or premium, if any,
shall be made directly to such holder or its nominee at such address as may from
time to time be furnished by such holder in writing without surrender or
presentation of the Bonds held by such holder to the Trustee (except in the case
of payment or redemption of any of the Bonds in whole) and with respect to each
such original holder or subsequent holder such payments shall be made in
accordance with the provisions of any written agreement between such original
holder or subsequent holder and the Company which shall have been communicated
and consented to by the Trustee.

       

          Section 5.    
All of the Bonds shall be secured by the Indenture and shall be subject
to all of the terms and conditions thereof, as specifically set forth
therein.  Except to the extent hereby amended, the Indenture is in all
respects hereby ratified, confirmed and approved by the
Company.

       

      Article
Two

      Amendment
of Mortgage

       

      Section
1.     The Company acknowledges that
Section 5.15 of the Indenture has been heretofore amended and after giving
effect to such amendment, reads as follows:

       

      “Section 5.15.  Certificate
as to Compliance.  On the Restatement Date and on or before
May 30 each year thereafter, the Company will deliver to the Trustee
(1) an Officers’ Certificate stating whether or not the Company is in
default in the payment of the principal or interest on the Bonds or has
knowledge of any Default, and, if so, specifying each such Default of which the
signers have knowledge, and (2) a certificate of the firm of independent
certified public accountants that prepared the consolidated financial statements
for the Company and its Subsidiaries for the immediately preceding fiscal year
to the effect that such firm, in making the examination in connection with its
report on such consolidated financial statements, has obtained no knowledge of
any Default (or if knowledge of Default has been obtained, specifying each such
Default), by the Company during such fiscal year in the observance, performance,
or fulfillment of any of the  conditions or covenants contained in
this Indenture, compliance with which is subject to verification by accountants,
and if the Company is not in compliance with any such condition or covenant,
specifying such condition or covenant.”

       

      Section
2.     The Indenture is hereby further supplemented
and amended by amending and restating the first clause of Section 11.02 of the
Indenture to read:

       

      “At any
time and from time to time while in possession of the Mortgaged Property and not
in default hereunder, the Company may without any release or consent by the
Trustee, provided
that, such property (i) is not fee-owned real estate
property  or (ii) has a fair value less than the greater of $100,000
or 1% of the aggregate principal amount of the bonds at the time
outstanding:”

      
        
          
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      Section
3.     The Indenture is hereby further supplemented
and amended by amending and restating the last paragraph of Section 11.02 of the
Indenture to read:

       

      “The
Trustee shall, from time to time, execute any written instrument to confirm to
any transferee the propriety of any action taken by the Company under this
Section 11.02, upon receipt by the Trustee of (i) an Officers’
Certificate requesting the same and expressing any required opinions, and
including a schedule describing the property disposed of and value thereof in
reasonable detail and stating that no Default or Event of Default has occurred
and is continuing and such action was duly taken in conformity with a designated
Subsection of this Section 11.02, and (ii) except for the disposition
of property described in Subsection (a), an Opinion of Counsel stating that
such action was duly taken by the Company in conformity with such Subsection and
that the execution of such written instrument is appropriate to confirm the
propriety of such action under this Section 11.02.”

       

      Article
Three

      Miscellaneous
Provisions

       

          Section 1.    
The Trustee shall be entitled to, may exercise and shall be protected by, where
and to the full extent that the same are applicable, all the rights, powers,
privileges, immunities and exemptions provided in the Indenture as if the
provisions concerning the same were incorporated herein at
length.  The Trustee under the Indenture shall ex
officio be Trustee hereunder.  The recitals and statements in
this Supplemental Indenture and in the Bonds shall be taken as statements by the
Company alone, and shall not be considered as made by or as imposing any
obligation or liability upon the Trustee, nor shall the Trustee be held
responsible for the legality or validity of this Supplemental Indenture or of
the Bonds, and the Trustee makes no covenants or representations, and shall not
be responsible, as to and for the effect, authorization, execution, delivery or
recording of this Supplemental Indenture.

       

          Section 2.    
This Supplemental Indenture shall become void if and when the Original
Indenture as heretofore supplemented and amended shall be
void.

       

          Section 3.    
The Indenture as supplemented hereby is ratified and
confirmed.

       

          Section 4.    
This Supplemental Indenture may be executed in any number of
counterparts, each of which shall be an original; but such counterparts shall
together constitute but one and the same instrument.

       

      [Signatures
on Following Pages]

       

      
        
          
            -7-

          

           

        

        
           

          
            

          

        

        
           

        

      

       

      IN
WITNESS WHEREOF, said CENTRAL VERMONT PUBLIC SERVICE CORPORATION has caused this
instrument to be signed, and its corporate seal attested by its Assistant
Corporate Secretary to be hereunto affixed, by Pamela J. Keefe, its Vice
President in that behalf duly authorized, and said U.S. BANK NATIONAL
ASSOCIATION has caused this instrument to be executed in its corporate name by
its Officer all as of the day and year first above written.

       

      
        	
                 
      

              	
                Central
      Vermont Public Service Corporation

              

      

       

       

       

      
        	
                 
      

              	
                By                      /s/Pamela
      J. Keefe   

              

      

      
        	
                 
      

              	
                                         
      Pamela J. Keefe

              

      

      
        	
                 
      

              	
                                         
      Its Vice President

              

      

      Attest:

       

       

       

      /s/Mary
C. Marzec

      Mary C.
Marzec

      Assistant
Corporate Secretary

       

       

      Signed,
sealed and delivered on

      behalf of
Central Vermont Public

      Service
Corporation in the presence
of:                                                                                                                                     
(CORPORATE SEAL)

       

       

       

      /s/Kathleen
Watts

      Kathleen
Watts

       

       

       

      /s/Paula
Bishop

      Paula
Bishop

       

       

       

       

       

       

       

       

      
        
          
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                U.S.
      BANK NATIONAL ASSOCIATION, 

              

      

      
        	
                 
      

              	
                     as
      Trustee

              

      

       

       

       

      
        	
                 
      

              	
                By                    /s/Kathy
      L. Mitchell

              

      

      
        	
                 
      

              	
                                       
      Kathy L. Mitchell

              

      

      
        	
                 
      

              	
                                       
      Its Vice President

              

      

       

      Signed
and delivered on

      behalf of
U.S. BANK NATIONAL

      ASSOCIATION
in the presence of:

       

       

       

      /s/Mark
A. Forgetta

      Mark A.
Forgetta

       

       

       

      /s/Karen
R. Felt

      Karen R.
Felt

       

      
        
          
            -9-

          

           

        

        
           

          
            

          

        

        
           

        

      

      State
of Vermont)

      )SS.

      County
of Rutland)

       

      On this
7th day of May, A.D. 2008, before me, a Notary Public in and for said State,
duly commissioned and acting as such, personally came Pamela J. Keefe, Vice
President of said CENTRAL VERMONT PUBLIC SERVICE CORPORATION , to me personally
known and known to me to be one of the persons named in and who executed the
foregoing instrument, and who being duly sworn by me deposed and said: that she
resides in Brandon, Vermont; that she is Vice President of CENTRAL VERMONT
PUBLIC SERVICE CORPORATION , the Corporation described in and which executed the
foregoing instrument as party of the first part; that she knows the seal of said
Corporation; that the seal affixed to said instrument is such corporate seal;
that it was so affixed by order of the Board of Directors of said Corporation,
and that she signed her name thereto by like order, and she acknowledged and
declared that she executed the foregoing instrument and caused the seal of said
CENTRAL VERMONT PUBLIC SERVICE CORPORATION to be affixed thereto as its Vice
President by authority of the Board of Directors of said Corporation, and
acknowledged the same to be her free act and deed, and the free act and deed of
said Corporation.

       

      WITNESS my
hand and official seal the day and year aforesaid.

       

       

       

      
        	
                 
      

              	
                              /s/Melissa
      Stevens

              

      

      
        	
                 
      

              	
                            
      Melissa Stevens, Notary Public

              

      

       

      
        	
                 
      

              	
                My
      commission expires February 10,
2011

              

      

       

       

      (Notarial
Seal)

       

       

      
        
          
            -10-

          

           

        

        
           

          
            

          

        

        
           

        

      

      State
of Connecticut)

      )SS.

      County
of Hartford)

       

       

      On this
7th day of May, A.D. 2008, before me, a Notary Public in and for said
Commonwealth, duly commissioned and acting as such, personally came
Kathy L. Mitchell, Vice President of U.S. BANK NATIONAL ASSOCIATION, to me
known and known to me to be one of the persons named in and who executed the
foregoing instrument, and who being duly sworn by me deposed and said: that she
resides in West Hartford, Connecticut; that she is a Vice President of U.S. BANK
NATIONAL ASSOCIATION, the corporation described in and which executed the
foregoing instrument; and that she signed her name thereto by authority of said
Bank, and she acknowledged the same to be her free act and deed, and the free
act and deed of said Bank.  And Kathy L. Mitchell, a Vice
President of said U.S. BANK NATIONAL ASSOCIATION, further acknowledged that she
accepted the trust hereinbefore created for, and on behalf of, said U.S. Bank
National Association, Trustee, upon the terms therein named.

       

      WITNESS my
hand and official seal the day and year aforesaid.

       

       

       

      
        	
                 
      

              	
                             /s/Susan P.
      McNally

              

      

      
        	
                 
      

              	
                           
      Susan P. McNally, Notary
Public

              

      

       

      
        	
                 
      

              	
                My
      commission expires March 31,
2010

              

      

       

      (Notarial
Seal)

       

      
        
          
            -11-

          

           

        

        
           

          
            

          

        

        
           

        

      

       

       

       

       

      (Form of
Series UU Bonds)

       

      Central
Vermont Public Service Corporation

       

      First
Mortgage 6.83% Bond, Series UU, due May 15, 2028

       

      No.
RUU-_______                                                                                                                                                                          $____________

      PPN 155771
M#2May __, 2008

       

      Central
Vermont Public Service Corporation, a Vermont corporation (hereinafter called
the “Company”),
for value received, hereby promises to pay to _________________ or registered
assigns, the sum of _________________ Dollars on the 15th day of May, 2028, and
to pay to the registered holder interest (computed on the basis of a 360-day
year of twelve 30-day months) on said sum from the date hereof until the same
shall be paid, at the rate of 6.83% per annum, payable semi-annually on the 15th
day of May and November in each year, commencing on November 15_, 2008
until the payment of the said principal of this Bond becomes due and
payable.  This Bond shall bear interest on any overdue principal,
premium, if any, and on any overdue interest to the extent permitted by law, at
a rate of 7.83%.  The principal of, premium, if any, and the interest
on this Bond shall be payable at the corporate trust office of U.S. Bank
National Association in the City of Hartford, Connecticut, or its successor in
trust under the Indenture hereinafter referred to, at its designated corporate
trust office, in coin or currency of the United States of America which, at the
time of payment is legal tender for the payment of public and private debts;
provided,
that the principal, premium and interest on this Bond may be paid by written
agreement between the Company and with the Bondholder by check mailed or wire
transfer to the Bondholder, as specified in such agreement.

       

      This Bond
is one of a series of Bonds designated “First Mortgage 6.83% Bonds,
Series UU (the “Series UU
Bonds”).  The Bonds are part of an issue of bonds of the
Company authorized, without limit as to aggregate amount issued or outstanding
except as provided in the Indenture hereinafter mentioned, issued and to be
issued under and pursuant to and all equally and ratably secured by an Indenture
dated as of October 1, 1929 (said Indenture, as amended and supplemented by
certain supplemental indentures later executed including the Forty-Sixth
Supplemental Indenture dated as of May 15, 2008 (the “Supplemental
Indenture”) pursuant to which the Bonds are being issued, being herein
referred to as the “Indenture”)
duly executed and delivered by the Company to U.S. Bank National Association (as
successor to Old Colony Trust Company as trustee and other successor trustees)
(the “Trustee”),
to which Indenture reference is hereby made for a description of the property
mortgaged and pledged, the nature and extent of the security and the rights of
the holders of the Bonds and of the Trustee in respect of such
security.  By the terms of the Indenture, the Bonds to be secured
thereby are issuable in series which may vary as to date, amount, date of
maturity, rate of interest, and in other respects as provided in the
Indenture.

      
        
          
            Exhibit
A

            (to
Forty-Sixth Supplemental Indenture)

          

           

        

        
           

          
            

          

        

        
           

        

      

       

      This Bond
shall be redeemable at the option of the Company in whole, or in part, at any
time, in an amount not less than 5% of the aggregate principal amount of the
Bonds then outstanding in the case of a partial redemption, upon the notice and
in the manner provided in Article Twelve of the Indenture, at 100% of the
principal amount of the Bonds to be redeemed and interest thereon to the
redemption date plus a premium equal to the Make-Whole Amount (defined below),
which shall be determined two Business Days prior to the date of such redemption
and certified in writing to the Trustee.

       

      The term
“Make-Whole Amount” means, with respect to any Bond, an amount equal to the
excess, if any, of the Discounted Value of the Remaining Scheduled Payments with
respect to the Called Principal of such Bond over the amount of such Called
Principal, provided that the Make-Whole Amount may in no event be less than
zero.  For the purposes of determining the Make-Whole Amount, the
following terms have the following meanings:

       

      “Called
Principal” means, with respect to any Bond, the principal of such Bond
that is to be redeemed pursuant to Section 2 of the Supplemental Indenture
or has become or is declared to be immediately due and payable pursuant to
Section 6.01 of the Indenture.

       

      “Discounted
Value” means, with respect to the Called Principal of any Bond, the
amount obtained by discounting all Remaining Scheduled Payments with respect to
such Called Principal from their respective scheduled due dates to the
Settlement Date with respect to such Called Principal, in accordance with
accepted financial practice and at a discount factor (applied on the same
periodic basis as that on which interest on the Bonds is payable) equal to the
Reinvestment Yield with respect to such Called Principal.

       

      “Reinvestment
Yield” means, with respect to the Called Principal of any Bond, 0.50%
over the
yield to maturity implied by (i) the yields reported as of 10:00 a.m. (New
York City time) on the second Business Day preceding the Settlement Date with
respect to such Called Principal, on the display designated as “Page PX1” (or
such other display as may replace Page PX1) on Bloomberg Financial Markets for
the most recently issued actively traded on the run U.S. Treasury securities
having a maturity equal to the Remaining Average Life of such Called Principal
as of such Settlement Date, or (ii) if
such yields are not reported as of such time or the yields reported as of such
time are not ascertainable (including by way of interpolation), the Treasury
Constant Maturity Series Yields reported, for the latest day for which such
yields have been so reported as of the second Business Day preceding the
Settlement Date with respect to such Called Principal, in Federal Reserve
Statistical Release H.15 (or any comparable successor publication) for U.S.
Treasury securities having a constant maturity equal to the Remaining Average
Life of such Called Principal as of such Settlement
Date.  

       

      In the
case of each determination under clause (i) or clause (ii), as the
case may be, of the preceding paragraph, such implied yield will be determined,
if necessary, by (a) converting U.S. Treasury bill quotations to bond
equivalent yields in accordance with accepted financial practice and
(b) interpolating linearly between (1) the applicable U.S. Treasury
security with the maturity closest to and greater than such Remaining
Average

      
        
          
            A-2

          

           

        

        
           

          
            

          

        

        
           

        

      

      Life and
(2) the applicable U.S. Treasury security with the maturity closest to and
less than such Remaining Average Life.  The Reinvestment Yield shall
be rounded to the number of decimal places as appears in the interest rate of
the applicable Bond.

       

      “Remaining
Average Life” means, with respect to any Called Principal, the number of
years (calculated to the nearest one-twelfth year) obtained by dividing (i) such
Called Principal into (ii) the sum of the products obtained by multiplying (a)
the principal component of each Remaining Scheduled Payment with respect to such
Called Principal by (b) the number of years (calculated to the nearest
one-twelfth year) that will elapse between the Settlement Date with respect to
such Called Principal and the scheduled due date of such Remaining Scheduled
Payment.

       

      “Remaining
Scheduled Payments” means, with respect to the Called Principal of any
Bond, all payments of such Called Principal and interest thereon that would be
due after the Settlement Date with respect to such Called Principal if no
payment of such Called Principal were made prior to its scheduled due date,
provided
that if such Settlement Date is not a date on which interest payments are due to
be made under the terms of the Bonds, then the amount of the next succeeding
scheduled interest payment will be reduced by the amount of interest accrued to
such Settlement Date and required to be paid on such Settlement Date pursuant to
Section 2 of the Supplemental Indenture or Section 6.01 of the Indenture,
as the context requires.

       

      “Settlement
Date” means, with respect to the Called Principal of any Bond, the date
on which such Called Principal is to be redeemed pursuant to Section 2 of
the Supplemental Indenture has became or is declared to be immediately due and
payable pursuant to Section 6.01 of the Indenture, as the context
requires.

       

      In case
an Event of Default, as defined in the Indenture, shall occur, the principal of
this Bond may become or be declared due and payable prior to maturity as
provided in the Indenture.  No recourse shall be had for the payment
of the principal, premium, if any, or interest of this Bond, or for any claim
based hereon, or otherwise in respect hereof or of the Indenture, to or against
any incorporator, stockholder, officer or director, past, present or future, of
the Company, either directly or through the Company, under any constitution or
statute or rule of law, or by the enforcement of any assessment or penalty, or
otherwise, all such liability of incorporators, stockholders, directors and
officers being waived and released by the holder hereof by the acceptance of
this Bond and being likewise waived and released by the terms of the
Indenture.

       

      This Bond
is transferable by the registered holder hereof, in person or by attorney duly
authorized, at the corporate trust office of the Trustee in the City of St.
Paul, Minnesota, upon surrender and cancellation of this Bond, and upon any such
transfer a new registered Bond or Bonds of the same series and maturity date and
for the same aggregate principal amount will be issued to the transferee in
exchange herefor.  This Bond shall not be valid or become obligatory
for any purpose unless and until it shall have been authenticated by the
execution by the Trustee or its successor in trust under the Indenture of the
certificate endorsed hereon.

      
        
          
            A-3

          

           

        

        
           

          
            

          

        

        
           

        

      

       

      IN
WITNESS WHEREOF, Central Vermont Public Service Corporation has caused this Bond
to be executed in its name by the manual or facsimile signature of its President
or one of its Vice-Presidents, and its corporate seal (or a facsimile thereof)
to be hereto affixed and attested by the manual or facsimile signature of its
Secretary or one of its Assistant Secretaries, this 15th day of May,
2008.

       

      
        	
                 
      

              	
                Central
      Vermont Public Service Corporation

              

      

       

      
        	
                 
      

              	
                By____________________________________

              

      

      
        	
                 
      

              	
                Pamela J.
      Keefe, Vice President

              

      

       

      Attest:

       

       

      
        	
                 
      

              	
                ____________________________________

              

      

      
        	
                 
      

              	
                Mary
      C. Marzec, Assistant Secretary

              

      

       

       

       

       

       

      (FORM
OF TRUSTEE'S CERTIFICATE)

       

      Trustee’s
Certificate of Authentication

       

      This Bond
is one of the Series UU Bonds described in the within mentioned
Indenture.

       

      
        	
                 
      

              	
                U.S.
      Bank National Association,

              

      

      
        	
                 
      

              	
                       Trustee

              

      

       

      
        	
                 
      

              	
                By____________________________________

              

      

      
        	
                 
      

              	
                Authorized
      Officer

              

      

       

      
        
          
            A-4

          

           

        

        
           

          
            

          

        

        
           

        

      

       

       

      Description
of Real Property

       

      All land
and premises, rights, privileges and easements conveyed or purported to have
been conveyed to the Company in and by the following described deeds and the
records thereof are hereby incorporated herein by reference:

       

      Properties
not previously described:

       

          1) Deed from
Paul and Patricia Brodeur, dated September 20, 2005, recorded in Book 187, Pages
485-487 of the St. Albans Town Land Records in the County of Franklin and State
of Vermont.

       

          2) Deed from
Grace McKeon, dated March 24, 2006, recorded in Book 171, Pages 719-721 of the
Winhall Town Land Records in the County of Bennington and State of
Vermont.

       

          3) Deed from
Rochester Electric Light and Power Co. dated September 1, 2006, recorded in Book
82, Pages 93-99 of the Rochester Town Land Records in the County of Windsor and
State of Vermont.

       

      Also Deed
from Rochester Electric Light and Power Co. dated September 1, 2006, recorded in
Book 69, Page 144-150 of the Stockbridge Town Land Records in the County of
Windsor and State of Vermont.

       

       Also
Deed from Rochester Electric Light and Power Co. dated September 1, 2006,
recorded in Book 54, Pages 723-729 of the Pittsfield Town Land Records in the
County of Rutland and State of Vermont.

       

          4) Deed from
Rutland County Community Land Trust Inc., dated September 14, 2007, recorded in
Book 130, Pages 574-577 of the Clarendon Town Land Records in the County of
Rutland and State of Vermont.

       

          5) Deed from
Vermont Electric Cooperative, Inc. dated December 7, 2006, recorded in Book 247,
Pages 289-290 of the Wilmington Town Land Records in the County of Windham and
State of Vermont.

       

      Also Deed
from Vermont Electric Cooperative, Inc. dated December 7, 2006, recorded in Book
247, Pages 291-292 of the Wilmington Town Land Records in the County of Windham
and State of Vermont.

       

      Also Deed
from Vermont Electric Cooperative, Inc. dated December 7, 2006, recorded in Book
267, Pages 189-191 of the Dover Town Land Records in the County of Windham and
State of Vermont.

      
        
          
            Schedule
A

            (to
Forty-Sixth Supplemental Indenture)

          

           

        

        
           

          
            

          

        

        
           

        

      

       

      Also Deed
from Vermont Electric Cooperative, Inc. dated December 7, 2006, recorded in Book
117, Pages 27-28 of the Guilford Town Land Records in the County of Windham and
State of Vermont.

       

          6) Deed from
C.V. Realty Inc. dated December 28, 2007, recorded in Book 72, Page 564 of the
Chittenden Town Land Records in the County of Rutland and State of
Vermont.

       

      Also, all
property of every kind whatsoever, including land and premises, rights,
privileges, easements, transmission lines, substations and distribution lines,
in the following towns:

       

      In
New London County, State of Connecticut:

      
        	
                Waterford

              	 
      	 
      

      

       

      In
Hartford County, State of Connecticut:

      
        	
                Berlin

              	 
      	 
      

      

       

      In
Cumberland County, State of Maine:

      
        	
                Yarmouth

              	 
      	 
      

      

       

      In
Sullivan County, State of New Hampshire:

      
        	
                Charlestown

              	
                Cornish

              	
                Plainfield

              
	
                Claremont

              	
                Newport

              	
                Unity

              

      

       

      In
Cheshire County, State of New Hampshire:

      
        	
                Chesterfield

              	
                Hinsdale

              

      

       

      In
Grafton County, State of New Hampshire:

      
        	
                Bath

              	
                Lyman

              	
                Orford

              
	
                Haverhill

              	
                Lyme

              	
                Piermont

              

      

       

      In
Washington County, State of New York:

      
        	
                Granville

              	
                Hampton

              

      

       

      In
Rensselaer County, State of New York:

      
        	
                Hoosick

              	 
      	 
      

      

       

       

      
        
          
            -2-

          

           

        

        
           

          
            

          

        

        
           

        

      

      In
Addison County, State of Vermont:

      
        	
                Addison

              	
                Leicester

              	
                Ripton

              
	
                Bridport

              	
                Lincoln

              	
                Salisbury

              
	
                Bristol

              	
                Middlebury

              	
                Shoreham

              
	
                Cornwall

              	
                Monkton

              	
                Starksboro

              
	
                Ferrisburg

              	
                New
      Haven

              	
                Vergennes

              
	
                Goshen

              	
                Orwell

              	
                Weybridge

              
	
                Granville

              	
                Panton

              	
                Whiting

              
	
                Hancock

              	 
      	 
      

      

       

      In
Bennington County, State of Vermont:

      
        	
                Arlington

              	
                Manchester

              	
                Searsburg

              
	
                Bennington

              	
                Peru

              	
                Shaftsbury

              
	
                Dorset

              	
                Pownal

              	
                Sunderland

              
	
                Glastenbury

              	
                Rupert

              	
                Winhall

              
	
                Landgrove

              	
                Readsboro

              	
                Woodford

              
	 
      	
                Sandgate

              	 
      

      

       

      In
Caledonia County, State of Vermont:

      
        	
                Barnet

              	
                Lyndon

              	
                Walden

              
	
                Danville

              	
                Ryegate

              	
                Waterford

              
	
                Kirby

              	
                St.
      Johnsbury

              	
                Wheelock

              

      

       

      In
Chittenden County, State of Vermont:

      
        	
                Buels
      Gore

              	
                Essex

              	
                Milton

              
	
                Burlington

              	
                Huntington

              	
                Underhill

              
	
                Colchester

              	
                Jericho

              	
                Westford

              

      

       

      In
Essex County, State of Vermont:

      
        	
                Concord

              	
                Guildhall

              	
                Victory

              
	
                Granby

              	
                Lunenburg

              	 
      

      

       

      In
Franklin County, State of Vermont:

      
        	
                Bakersfield

              	
                Fletcher

              	
                Richford

              
	
                Berkshire

              	
                Franklin

              	
                Sheldon

              
	
                Enosburg

              	
                Georgia

              	
                St.
      Albans City

              
	
                Fairfax

              	
                Highgate

              	
                St.
      Albans Town

              
	
                Fairfield

              	
                Montgomery

              	
                Swanton

              

      

       

      In
Lamoille County, State of Vermont:

      
        	
                Belvidere

              	
                Eden

              	
                Johnson

              
	
                Cambridge

              	
                Hyde
      Park

              	 
      

      

       

       

      
        
          
            -3-

          

           

        

        
           

          
            

          

        

        
           

        

      

       

      In
Orange County, State of Vermont:

      
        	
                Bradford

              	
                Fairlee

              	
                Thetford

              
	
                Braintree

              	
                Newbury

              	
                Tunbridge

              
	
                Brookfield

              	
                Randolph

              	
                Vershire

              
	
                Chelsea

              	
                Strafford

              	
                West
      Fairlee

              

      

       

      In
Orleans County, State of Vermont:

      
        	
                Lowell

              	
                Irasburg

              	 
      

      

       

      In
Rutland County, State of Vermont:

      
        	
                Benson

              	
                Middletown
      Springs

              	
                Sherburne

              
	
                Brandon

              	
                Mt.
      Holly

              	
                Shrewsbury

              
	
                Castleton

              	
                Mt.
      Tabor

              	
                Sudbury

              
	
                Chittenden

              	
                Pawlet

              	
                Tinmouth

              
	
                Clarendon

              	
                Pittsfield

              	
                Wallingford

              
	
                Danby

              	
                Pittsford

              	
                Wells

              
	
                Fair
      Haven

              	
                Poultney

              	
                West
      Haven

              
	
                Hubbardton

              	
                Proctor

              	
                West
      Rutland

              
	
                Ira

              	
                Rutland
      City

              	 
      
	
                Mendon

              	
                Rutland
      Town

              	 
      

      

       

      In
Washington County, State of Vermont:

      
        	
                Northfield

              	
                Roxbury

              	 
      

      

       

      In
Windham County, State of Vermont:

      
        	
                Athens

              	
                Jamaica

              	
                Wardsboro

              
	
                Brattleboro

              	
                Londonderry

              	
                Westminster

              
	
                Brookline

              	
                Marlboro

              	
                Whitingham

              
	
                Dover

              	
                Newfane

              	
                Wilmington

              
	
                Dummerston

              	
                Rockingham

              	
                Windham

              
	
                Grafton

              	
                Stratton

              	 
      
	
                Guilford

              	
                Townsend

              	 
      
	
                Halifax

              	
                Vernon

              	 
      

      

       

      In
Windsor County, State of Vermont:

      
        	
                Andover

              	
                Hartland

              	
                Sharon

              
	
                Baltimore

              	
                Ludlow

              	
                Springfield

              
	
                Barnard

              	
                Norwich

              	
                Stockbridge

              
	
                Bethel

              	
                Plymouth

              	
                Weathersfield

              
	
                Bridgewater

              	
                Pomfret

              	
                Weston

              
	
                Cavendish

              	
                Reading

              	
                West
      Windsor

              
	
                Chester

              	
                Rochester

              	
                Windsor

              
	
                Hartford

              	
                Royalton

              	
                Woodstock

              

      

       

       

      
        
          
            -4-ex4_8.htm

    
      EXHIBIT
4.8

    

    
      

      Final
Version

    

     

    Central
Vermont Public Service Corporation

     

    

     

    

     

    $60,000,000
First Mortgage 6.83% Bonds, Series UU, due May 15, 2028

     

    

     

    

     

    ______________

     

    Bond
Purchase Agreement

     

    _____________

     

    

     

    Dated
May 15, 2008

    

     

    

    

    

    
      

    

    

    Table
of Contents

     

    (Not a
part of the Agreement)

     

    SectionHeadingPage

     

    
      	
               
      

            	
              Section 1.Authorization
      of Bonds

            

    

     

     

    
      	
               
      

            	
              Section 2.Sale
      and Purchase of Bonds

            

    

     

     

    
      	
               
      

            	
              Section 3.Closing

            

    

     

     

    
      	
               
      

            	
              Section 4.Conditions
      to Closing

            

    

     

    
      	
               
      

            	
              Section 4.1.Representations
      and Warranties

            

    

    
      	
               
      

            	
              Section 4.2.Performance;
      No Default.

            

    

    
      	
               
      

            	
              Section 4.3.Compliance
      Certificates.

            

    

    
      	
               
      

            	
              Section 4.4.Opinions
      of Counsel

            

    

    
      	
               
      

            	
              Section 4.5.Purchase
      Permitted by Applicable Law, Etc

            

    

    
      	
               
      

            	
              Section 4.6.Sale
      of Other Bonds

            

    

    
      	
               
      

            	
              Section 4.7.Payment
      of Special Counsel Fees.

            

    

    
      	
               
      

            	
              Section 4.8.Private
      Placement Number

            

    

    
      	
               
      

            	
              Section 4.9.Changes
      in Corporate Structure

            

    

    
      	
               
      

            	
              Section 4.10.Proceedings
      and Documents

            

    

    
      	
               
      

            	
              Section
      4.11.Execution and Delivery and Filing and Recording of Forty-Sixth
      Supplemental Indenture

            

    

    
      	
               
      

            	
              Section 4.12.Regulatory
      Approvals

            

    

     

    
      	
               
      

            	
              Section 5.Representations
      and Warranties of the Company

            

    

     

    
      	
               
      

            	
              Section 5.1.Organization;
      Power and Authority

            

    

    
      	
               
      

            	
              Section 5.2.Authorization,
      Etc

            

    

    
      	
               
      

            	
              Section 5.3.Disclosure

            

    

    
      	
               
      

            	
              Section 5.4.Organization
      and Ownership of Shares of Subsidiaries;
  Affiliates

            

    

    
      	
               
      

            	
              Section 5.5.Financial
      Statements; Material Liabilities

            

    

    
      	
               
      

            	
              Section 5.6.Compliance
      with Laws, Other Instruments, Etc

            

    

    
      	
               
      

            	
              Section 5.7.Governmental
      Authorizations, Etc

            

    

    
      	
               
      

            	
              Section 5.8.Litigation;
      Observance of Agreements, Statutes and
Orders

            

    

    
      	
               
      

            	
              Section 5.9.Taxes

            

    

    
      	
               
      

            	
              Section 5.10.Title
      to Property; Leases

            

    

    
      	
               
      

            	
              Section 5.11.Franchises
      and Permits

            

    

    
      	
               
      

            	
              Section 5.12.Compliance
      with ERISA

            

    

    
      	
               
      

            	
              Section 5.13.Private
      Offering by the Company

            

    

    
      	
               
      

            	
              Section 5.14.Use
      of Proceeds; Margin Regulations

            

    

    
      	
               
      

            	
              Section 5.15.Existing
      Indebtedness; Future Liens

            

    

    
      	
               
      

            	
              Section
      5.16.Foreign Assets Control Regulations,
Etc

            

    

    
      	
               
      

            	
              Section 5.17.Status
      under Certain Statutes

            

    

    
      	
               
      

            	
              Section
      5.18.Investment and Holding Company
Status

            

    

    
      	
               
      

            	
              Section 5.19.Environmental
      Matters

            

    

     

    
      	
               
      

            	
              Section 6.Representations
      of the Purchaser

            

    

     

    
      	
               
      

            	
              Section 6.1.Purchase
      for Investment

            

    

    
      	
               
      

            	
              Section 6.2.Source
      of Funds

            

    

     

    
      	
               
      

            	
              Section 7.Covenants

            

    

     

    
      	
               
      

            	
              Section 7.1.Financial
      and Business Information

            

    

    
      	
               
      

            	
              Section 7.2.Officer’s
      Certificates

            

    

    
      	
               
      

            	
              Section 7.3.Inspection

            

    

    
      	
               
      

            	
              Section 7.4Recording

            

    

     

    
      	
               
      

            	
              Section7.5.
      Compliance With Law

            

    

     

     

    
      	
               
      

            	
              Section 8.Home
      Office Payment

            

    

     

     

    
      	
               
      

            	
              Section 9.Expenses,
      Etc

            

    

     

    
      	
               
      

            	
              Section 9.1.Transaction
      Expenses

            

    

    
      	
               
      

            	
              Section 9.2.Survival

            

    

     

    
      	
               
      

            	
              Section 10.Survival
      of Representations and Warranties; Entire
  Agreement

            

    

     

     

    
      	
               
      

            	
              Section 11.Amendment
      and Waiver

            

    

     

    
      	
               
      

            	
              Section 11.1.Requirements

            

    

    
      	
               
      

            	
              Section 11.2.Solicitation
      of Holders of Bonds

            

    

    
      	
               
      

            	
              Section 11.3.Binding
      Effect, Etc

            

    

    
      	
               
      

            	
              Section 11.4.Bonds
      Held by Company, Etc

            

    

     

    
      	
               
      

            	
              Section 12.Notices

            

    

     

     

    
      	
               
      

            	
              Section 13.Reproduction
      of Documents

            

    

     

     

    
      	
               
      

            	
              Section 14.Definitions

            

    

     

     

    
      	
               
      

            	
              Section 15.Confidential
      Information

            

    

     

     

    
      	
               
      

            	
              Section 16.Substitution
      of Purchaser

            

    

     

     

    
      	
               
      

            	
              Section 17.Miscellaneous

            

    

     

    
      	
               
      

            	
              Section 17.1.Successors
      and Assigns

            

    

    
      	
               
      

            	
              Section 17.2.Severability

            

    

    
      	
               
      

            	
              Section 17.3.Construction

            

    

    
      	
               
      

            	
              Section 17.4.Counterparts

            

    

    
      	
               
      

            	
              Section 17.5.Governing
      Law

            

    

     

    Signature

     

    Recitals

     

    

    Schedule A—Information
Relating to Purchasers

    

    Schedule 4.9—Changes
in Corporate Structure

    

    Schedule 5.3—Disclosure
Materials

    

    Schedule 5.4—Subsidiaries
of the Company and Ownership of Subsidiary Stock

    

    Schedule 5.5—Financial
Statements

    

    Schedule 5.8—Litigation

    

    Schedule 5.14—Use
of Proceeds

    

    Schedule 5.15—Existing
Indebtedness

    

    Exhibit 4.4(a)—Form
of Opinion of Kenneth C. Picton, Vermont Counsel for the Company

    

    Exhibit 4.4(b)—Form
of Opinion of New Hampshire Counsel for the Company

    

    Exhibit 4.4(c)—Form
of Opinion of Connecticut Counsel for the Company

    

    Exhibit 4.4(d)—Form
of Opinion of Maine Counsel for the Company

    

    Exhibit 4.4(e)—Form
of Opinion of New York Counsel for the Company

    

    Exhibit 4.4(f)—Form
of Opinion of Special Counsel for the Purchasers

    

    Exhibit A—Form
of Forty-Sixth Supplemental Indenture

    Central
Vermont Public Service Corporation

    77
Grove Street

    Rutland,
Vermont  05701

     

    

     

    $60,000,000
First Mortgage 6.83% Bonds, Series UU, due May 15, 2028

     

    

     

    

     

    May 15,
2008

     

    

    To
each of the Purchasers listed in

      the
attached Schedule A:

     

    Ladies
and Gentlemen:

     

    Central
Vermont Public Service Corporation, a Vermont corporation (the “Company”), agrees with you
as follows:

     

    
      	
               
      

            	
              Section 1.Authorization
      of Bonds.

            

    

     

    The
Company will authorize the issue and sale of $60,000,000 aggregate principal
amount of its First Mortgage 6.83% Bonds, Series UU, due May 15, 2028 (the
“Bonds”) under and
secured by the Indenture of Mortgage dated as of October 1, 1929
(hereinafter called the “Original Indenture”),
between the Company and the trustee named therein, as supplemented and amended
by forty-six indentures supplemental thereto and amendatory thereof, including
the Forty-Fourth Supplemental Indenture dated as of June 15, 2004 (the
“Forty-Fourth Supplemental
Indenture”), entered into by the Company and U.S. Bank National
Association, a national banking association, as trustee (the “Trustee”), which amended,
supplemented and restated the Original Indenture and the prior supplemental
indentures, the Forty-Fifth Supplemental Indenture dated as of July 15,
2004, entered into by the Company and the Trustee and the Forty-Sixth
Supplemental Indenture dated as of May 1, 2008 (the “Forty-Sixth Supplemental
Indenture”), entered into by the Company and the Trustee, which will be
substantially in the form attached hereto as Exhibit A.  The Original
Indenture as supplemented, amended and restated and further supplemented as
described in the preceding sentence is referred to herein as the “Indenture.”  The
Indenture constitutes a direct mortgage lien upon the franchises of the Company
and upon the properties therein described as intended to be mortgaged, subject
only to the exceptions set forth in the granting clauses of the Indenture and
Permitted Encumbrances.  The Bonds shall be substantially in the form
set forth in Exhibit A to the Forty-Sixth Supplemental
Indenture.  Certain capitalized terms used in this Agreement are
defined in Section 14.  Any other capitalized terms used herein and
not otherwise defined shall have the meaning set forth in the
Indenture.  As used herein, the term “this Agreement” and
references thereto shall mean this Agreement as it may from time to time be
amended or supplemented.

    
       

      
        	
                 
      

              	
                Section 2.   SALE AND PURCHASE OF
      BONDS.

              

      

       

    

    Subject
to the terms and conditions of this Agreement, the Company will issue and sell
to you and you will purchase from the Company, at the Closing provided for in
Section 3, Bonds in the principal amount specified opposite your name in
Schedule A at the purchase price of 100% of the principal amount
thereof.  Contemporaneously with entering into this Agreement, the
Company is entering into separate Bond Purchase Agreements (the “Other Agreements”) identical
with this Agreement with each of the other purchasers named in Schedule A
(the “Other
Purchasers”), providing for the sale at such Closing to each of the Other
Purchasers of Bonds in the principal amount specified opposite its name in
Schedule A.  Your obligation hereunder, and the obligations of
the Other Purchasers under the Other Agreements, are several and not joint
obligations, and you shall have no obligation under any Other Agreement and no
liability to any Person for the performance or nonperformance by any Other
Purchaser thereunder.

     

    
      	
               
      

            	
              Section 3.Closing.

            

    

     

    The sale
and purchase of the Bonds to be purchased by you and the Other Purchasers shall
occur at the offices of Chapman and Cutler LLP, 111 West Monroe Street, Chicago,
Illinois 60603 at 10:00 a.m. Chicago time, at a closing (the “Closing”) on May 15,
2008 or on such other Business Day thereafter as may be agreed upon by the
Company and you and the Other Purchasers.  At the Closing the Company
will deliver to you the Bonds to be purchased by you in the form of a single
Bond (or such greater number of Bonds in denominations of at least $1,000 as you
may request) dated the date of the Closing and registered in your name (or in
the name of your nominee), against delivery by you to the Company or its order
of immediately available funds in the amount of the purchase price therefor by
wire transfer of immediately available funds for the account of the Company to
account number 9408783353 at Bank of America, 777 Main Street, Hartford, CT
06115, ABA 026009593, Account Name — Central Vermont Public
Service Corp.  If at the Closing the Company shall fail to tender such
Bonds to you as provided above in this Section 3, or any of the conditions
specified in Section 4 shall not have been fulfilled to your satisfaction,
you shall, at your election, be relieved of all further obligations under this
Agreement, without thereby waiving any rights you may have by reason of such
failure or such nonfulfillment.

     

    
      	
               
      

            	
              Section 4.Conditions
      to Closing.

            

    

     

    Your
obligation to purchase and pay for the Bonds to be sold to you at the Closing is
subject to the fulfillment to your satisfaction, prior to or at the Closing, of
the following conditions:

     

    Section 4.1.Representations and
Warranties.  The representations and warranties of the Company
in this Agreement shall be correct when made and at the time of the
Closing.

     

    Section 4.2.Performance; No
Default.  The Company shall have performed and complied with
all agreements and conditions contained in this Agreement and the Indenture
required to be performed or complied with by it prior to or at the Closing and
after giving effect to the issue and sale of the Bonds (and the application of
the proceeds thereof as contemplated by Schedule 5.14), no Default or Event
of Default shall have occurred and be continuing.  

     

    Section 4.3.Compliance
Certificates.

     

    (a)Officer’s
Certificate.  The Company shall have delivered to you an
Officer’s Certificate, dated the date of the Closing, certifying that the
conditions specified in Sections 4.1, 4.2 and 4.9 have been
fulfilled.

     

    (b)Secretary’s
Certificate.  The Company shall have delivered to you a
certificate certifying as to the resolutions attached thereto and other
corporate proceedings relating to the authorization, execution and delivery of
the Bonds, the Forty-Sixth Supplemental Indenture, this Agreement and the Other
Agreements.

     

    Section 4.4.Opinions of
Counsel.  You shall have received opinions in form and
substance satisfactory to you, dated the date of the Closing (a) from
Kenneth C. Picton, Esq., Assistant General Counsel and Vermont counsel for the
Company, covering the matters set forth in Exhibit 4.4(a); (b) from
Ransmeier & Spellman, New Hampshire counsel for the Company, covering the
matters set forth in Exhibit 4.4(b); (c) from Day Pitney LLP, Connecticut
counsel for the Company, covering the matters set forth in Exhibit 4.4(c); (d)
from Verrill & Dana LLP, Maine counsel for the Company, covering the matters
set forth in Exhibit 4.4(d); (e) from Day Pitney LLP, New York counsel for
the Company, covering the matters set forth in Exhibit 4.4(e); (each of the
opinions listed in clauses (a) through (e) above shall also cover such
other matters incident to the transactions contemplated hereby as you or your
counsel may reasonably request and the Company hereby instructs each of such
counsel to deliver such opinions to you); and (f) from Chapman and Cutler
LLP, your special counsel in connection with such transactions, substantially in
the form set forth in Exhibit 4.4(f) and covering such other matters
incident to such transactions as you may reasonably request.

     

    Section 4.5.Purchase Permitted by Applicable
Law, Etc.  On the date of the Closing your purchase of Bonds
shall (i) be permitted by the laws and regulations of each jurisdiction to
which you are subject, without recourse to provisions (such as
Section 1405(a)(8) of the New York Insurance Law) permitting limited
investments by insurance companies without restriction as to the character of
the particular investment, (ii) not violate any applicable law or
regulation (including, without limitation, Regulation U, T or X of the Board of
Governors of the Federal Reserve System) and (iii) not subject you to any
tax, penalty or liability under or pursuant to any applicable law or regulation,
which law or regulation was not in effect on the date hereof.  If
requested by you, you shall have received an Officer’s Certificate certifying as
to such matters of fact as
you may reasonably specify to enable you to determine whether such purchase is
so permitted.

     

    Section 4.6.Sale of Other
Bonds.  Contemporaneously with the Closing, the Company shall
sell to the Other Purchasers, and the Other Purchasers shall purchase the Bonds
to be purchased by them at the Closing as specified in
Schedule A.

     

    Section 4.7.Payment of Special Counsel
Fees.; Without limiting the
provisions of Section 9.1, the Company shall have paid, on or before the
Closing, the fees, charges and disbursements of your special counsel referred to
in Section 4.4(f) to the extent reflected in a statement of such counsel
rendered to the Company at least one Business Day prior to the
Closing.

     

    Section 4.8.Private Placement
Number.  A Private Placement number issued by Standard &
Poor’s CUSIP Service Bureau (in cooperation with the Securities Valuation Office
of the National Association of Insurance Commissioners) shall have been obtained
for each of the Bonds.

     

    Section 4.9.Changes in Corporate
Structure.  The Company shall not have changed its jurisdiction
of incorporation or been a party to any merger or consolidation and shall not
have succeeded to all or any substantial part of the liabilities of any other
entity, at any time following the date of the most recent financial statements
referred to in Schedule 5.5.

     

    Section 4.10.Proceedings and
Documents.  All corporate and other proceedings in connection
with the transactions contemplated by this Agreement and the Forty-Sixth
Supplemental Indenture and all documents and instruments incident to such
transactions shall be satisfactory to you and your special counsel, and you and
your special counsel shall have received all such counterpart originals or
certified or other copies of such documents as you or they may reasonably
request.

     

    Section 4.11.Execution and Delivery and Filing
and Recording of Forty-Sixth Supplemental Indenture.  The
Forty-Sixth Supplemental Indenture shall have been duly executed and delivered
and shall have been duly filed and recorded in Rutland, Vermont (and financing
statements in respect thereof shall have been filed, if necessary) and said
Forty-Sixth Supplemental Indenture shall have been forwarded via United States
certified mail or delivered for recording to all such other locations in
Vermont, New Hampshire, New York, Maine and Connecticut (and financing
statements in respect thereof shall have been filed, if necessary) in such
manner and in such places as is required by law (and no other instruments are
required to be filed) to establish, preserve, perfect and protect the direct
security interest and mortgage Lien of the Trustee created by the Indenture on
all Mortgaged Property and franchises of the Company referred to in the
Indenture as subject to the direct mortgage Lien thereof and the Company shall
have delivered satisfactory evidence of such filings and
recordings.

     

    Section 4.12.Regulatory
Approvals.  The issue and sale of the Bonds shall have been
duly authorized by an order of the Vermont Public Service Board (the “VPSB”) and such order shall
be in full force and effect on the Closing Date and all appeal periods
applicable to such order shall have expired.  The Company shall
deliver satisfactory evidence that orders have been obtained approving the
issuance of the Bonds from the Public Utility Commissions of New Hampshire, New
York, and Maine and the Connecticut Department of Public Utility Control or that
such governmental bodies shall have waived jurisdiction thereof and such
approval or waiver shall not be contested or subject to review, or that such
governmental bodies do not have jurisdiction.

     

    
      	
               
      

            	
              Section 5.Representations and
      Warranties of the Company.

            

    

     

    The
Company represents and warrants to you that:

     

    Section 5.1.Organization; Power and
Authority.  The Company is a corporation duly organized,
validly existing and in good standing under the laws of its jurisdiction of
incorporation, and is duly qualified as a foreign corporation and is in good
standing in each jurisdiction in which such qualification is required by law,
other than those jurisdictions as to which the failure to be so qualified or in
good standing could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.  The Company has the
corporate power and authority to own or hold under lease the properties it
purports to own or hold under lease, to transact the business it transacts and
proposes to transact, to execute and deliver this Agreement and the Other
Agreements, the Forty-Sixth Supplemental Indenture and the Bonds and to perform
the provisions hereof and thereof.

     

    Section 5.2.Authorization,
Etc.  This Agreement and the Other Agreements, the Indenture
and the Bonds have been duly authorized by all necessary corporate action on the
part of the Company, and this Agreement and the Forty-Sixth Supplemental
Indenture constitute, and upon execution and delivery thereof each Bond will
constitute, a legal, valid and binding obligation of the Company enforceable
against the Company in accordance with its terms, except as such enforceability
may be limited by (i) applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the enforcement of creditors’ rights
generally and (ii) general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

     

    Section 5.3.Disclosure.  The
Company’s Form 10-K for the period ended December 31, 2007 and the
Company’s Form 10-Q for the period ended March 31, 2008, or as expressly
described in Schedule 5.3, or in one of the documents, certificates or
other writings identified therein, or in the financial statements listed in
Schedule 5.5 (this Agreement and such documents, certificates or other
writings and such financial statements delivered to each Purchaser prior to
April 8, 2008 being referred to, collectively, as the “Disclosure Documents”),
taken as a whole, do not contain any untrue statement of a material fact or omit
to state any material fact necessary to make the statements therein not
misleading in light of the circumstances under which they were
made).  Since December 31,
2007, there has been no
change  in  the  financial  condition,
operations, business or properties of the Company or any Subsidiary except
changes that individually or in the aggregate could not reasonably be expected
to have a Material Adverse Effect.

     

    Section 5.4.Organization and Ownership of Shares
of Subsidiaries; Affiliates.  (a) Schedule 5.4
contains (except as noted therein) complete and correct lists (i) of the
Company’s Subsidiaries, showing, as to each Subsidiary (including Material
Subsidiaries), the correct name thereof, the jurisdiction of its organization,
and the percentage of shares of each class of its capital stock or similar
equity interests outstanding owned by the Company and each other Subsidiary,
(ii) of the Company’s Affiliates, other than Subsidiaries, and
(iii) of the Company’s directors and senior officers.

     

    (b)All of
the outstanding shares of capital stock or similar equity interests of each
Material Subsidiary shown in Schedule 5.4 as being owned by the Company and
its Material Subsidiaries have been validly issued, are fully paid and
nonassessable and are owned by the Company or another Material Subsidiary free
and clear of any Lien (except as otherwise disclosed in
Schedule 5.4).

     

    (c)Each
Material Subsidiary identified in Schedule 5.4 is a corporation or other
legal entity duly organized, validly existing and in good standing under the
laws of its jurisdiction of organization, and is duly qualified as a foreign
corporation or other legal entity and is in good standing in each jurisdiction
in which such qualification is required by law, other than those jurisdictions
as to which the failure to be so qualified or in good standing could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.  Each such Material Subsidiary has the corporate or
other power and authority to own or hold under lease the properties it purports
to own or hold under lease and to transact the business it transacts and
proposes to transact.

     

    (d)No
Material Subsidiary is a party to, or otherwise subject to any legal restriction
or any agreement (other than this Agreement, the agreements listed on
Schedule 5.4 and customary limitations imposed by corporate law statutes)
restricting the ability of such Material Subsidiary to pay dividends out of
profits or make any other similar distributions of profits to the Company or any
of its Material Subsidiaries that owns outstanding shares of capital stock or
similar equity interests of such Material Subsidiary.

     

    Section 5.5.Financial Statements; Material
Liabilities.  The Company has delivered to each Purchaser
copies of the financial statements of the Company and its Subsidiaries listed on
Schedule 5.5. All of said financial statements (including in each case the
related schedules and notes) fairly present in all material respects the
consolidated financial position of the Company and its Subsidiaries as of the
respective dates specified in such Schedule and the consolidated results of
their operations and cash flows for the respective periods so specified and have
been prepared in accordance with GAAP consistently applied throughout the
periods involved except as set forth in the notes thereto (subject, in the case
of any interim financial statements, to normal year-end
adjustments).  

    The
Company and its Subsidiaries do not have any Material liabilities that are not
disclosed on such financial statements or otherwise disclosed in the Disclosure
Documents.

     

    Section 5.6.Compliance with Laws, Other
Instruments, Etc.  The execution, delivery and performance by
the Company of this Agreement, the Forty-Sixth Supplemental Indenture and the
Bonds will not (i) contravene, result in any breach of, or constitute a
default under, or result in the creation of any Lien in respect of any property
of the Company or any Material Subsidiary under, any indenture, mortgage, deed
of trust, loan, purchase or credit agreement, lease, corporate charter or
by-laws, or any other agreement or instrument to which the Company or any
Material Subsidiary is bound or by which the Company or any Material Subsidiary
or any of their respective properties may be bound or affected,
(ii) conflict with or result in a breach of any of the terms, conditions or
provisions of any order, judgment, decree, or ruling of any court, arbitrator or
Governmental Authority applicable to the Company or any Material Subsidiary or
(iii) violate any provision of any statute or other rule or regulation of
any Governmental Authority applicable to the Company or any Material
Subsidiary.

     

    Section 5.7.Governmental Authorizations,
Etc.  No consent, approval or authorization of, or
registration, qualification, filing or declaration with, any Governmental
Authority is required in connection with the issuance and sale of the Bonds
other than (i) an order of the VPSB approving the issuance of the Bonds and
(ii) a waiver from the Connecticut Department of Public Utility Control,
each of which has been obtained and is in full force and effect and final and
all periods of appeal and rehearing by third parties which have not stipulated
to the VPSB order as issued have expired and all conditions contained in any
such authorization or waiver which are to be fulfilled on or prior to the date
of issuance of the Bonds have been fulfilled.

     

    Section 5.8.Litigation; Observance of
Agreements, Statutes and Orders.  Other than as disclosed in
the Company’s Form 10-K for the period ended December 31, 2007 and the
Company’s Form 10-Q for the period ended March 31,
2008:  

     

    (a)There
are no actions, suits or proceedings pending or, to the knowledge of the
Company, threatened against or affecting the Company or any Material Subsidiary
or any property of the Company or any Material Subsidiary in any court or before
any arbitrator of any kind or before or by any Governmental Authority that,
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

     

    (b)Neither
the Company nor any Material Subsidiary is in default under any term of any
agreement or instrument to which it is a party or by which it is bound, or any
order, judgment, decree or ruling of any court, arbitrator or Governmental
Authority or is in violation of any applicable law, ordinance, rule or
regulation (including without limitation Environmental Laws) of any Governmental
Authority, which default or violation, individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect.

     

    Section 5.9.Taxes.  The Company
and its Material Subsidiaries have filed all tax returns that are required to
have been filed in any jurisdiction, and have paid all taxes shown to be due and
payable on such returns and all other taxes and assessments levied upon them or
their properties, assets, income or franchises, to the extent such taxes and
assessments have become due and payable and before they have become delinquent,
except for any taxes and assessments (i) the amount of which is not
individually or in the aggregate Material or (ii) the amount, applicability
or validity of which is currently being contested in good faith by appropriate
proceedings and with respect to which the Company or a Material Subsidiary, as
the case may be, has established adequate reserves in accordance with
GAAP.  The Company knows of no basis for any other tax or assessment
that could reasonably be expected to have a Material Adverse
Effect.  The charges, accruals and reserves on the books of the
Company and its Material Subsidiaries in respect of Federal, state or other
taxes for all fiscal periods are adequate.  The Federal income tax
liabilities of the Company and its Material Subsidiaries have been determined by
the Internal Revenue Service and paid for all fiscal years up to and including
the fiscal year ended December 31, 1999 and the statute of limitations has
run out on tax filings through fiscal year 2002.

     

    Section 5.10.Title to Property;
Leases.  To the best of the Company’s knowledge, the Company
has good and sufficient title to its properties that it purports to own
including all such properties reflected in the most recent audited balance sheet
referred to in Section 5.5 or purported to have been acquired by the
Company after said date (except as sold or otherwise disposed of in the ordinary
course of business), free and clear of Liens prohibited by the Indenture, other
than Permitted Encumbrances.  The Indenture describes all real
property that the Company owns or holds title to in fee simple.  Each
Material Subsidiary has good and sufficient title to its properties that it
purports to own including all such properties reflected in the most recent
audited balance sheet referred to in Section 5.5 or purported to have been
acquired by such Material Subsidiary after said date (except as sold or
otherwise disposed of in the ordinary course of business).  All leases
that individually or in the aggregate are Material are valid and subsisting and
are in full force and effect in all material respects.

     

    Section 5.11.Franchises and
Permits.  The Company and its Material Subsidiaries hold valid
and subsisting franchises, licenses and permits in all incorporated communities
served by them, authorizing them to conduct the respective utility businesses in
which they are engaged in such communities, and valid and subsisting
certificates of convenience and necessity and other authorizations from other
governmental or regulatory authorities.  The franchises, licenses,
permits, certificates and other authorizations held by the Company and its
Material Subsidiaries are free from unduly burdensome restrictions and are
sufficient in every material respect to enable the Company and its Material
Subsidiaries to carry on their respective utility businesses as now being
conducted by them.  The Company and its Material Subsidiaries are in
substantial compliance with all enforceable franchises, licenses, permits,
certificates and authorizations held by them.

     

    Section 5.12.Compliance with
ERISA.  (a) The Company and each ERISA Affiliate have
operated and administered each Plan in compliance
with all applicable laws except for such instances of noncompliance as have not
resulted in and could not reasonably be expected to result in a Material Adverse
Effect.  Neither the Company nor any ERISA Affiliate has incurred any
liability pursuant to Title I or IV of ERISA or the penalty or excise tax
provisions of the Code relating to employee benefit plans (as defined in
Section 3 of ERISA), and to the best of the Company’s knowledge no event,
transaction or condition has occurred or exists that could reasonably be
expected to result in the incurrence of any such liability by the Company or any
ERISA Affiliate, or in the imposition of any Lien on any of the rights,
properties or assets of the Company or any ERISA Affiliate, in either case
pursuant to Title I or IV of ERISA or to such penalty or excise tax
provisions or to Section 401(a)(29) or 412 of the Code, other than such
liabilities or Liens as would not be individually or in the aggregate
Material.

     

    (b)The
present value of the aggregate benefit liabilities under each of the Plans
(other than Multiemployer Plans), determined as of the end of such Plan’s most
recently ended plan year on the basis of the actuarial assumptions specified for
funding purposes in such Plan’s most recent actuarial valuation report, did not
exceed the aggregate current value of the assets of such Plan allocable to such
benefit liabilities.  The  term
“benefit  liabilities” has the meaning specified in section 4001
of ERISA and the terms “current value” and “present value” have the meaning
specified in section 3 of ERISA.

     

    (c)The
Company and its ERISA Affiliates have not incurred withdrawal liabilities (and
are not subject to contingent withdrawal liabilities) under section 4201 or
4204 of ERISA in respect of Multiemployer Plans that individually or in the
aggregate are Material.

     

    (d)The
expected post-retirement benefit obligation (determined as of the last day of
the Company’s most recently ended fiscal year in accordance with Financial
Accounting Standards Board Statement No. 106, without regard to liabilities
attributable to continuation coverage mandated by section 4980B of the
Code) of the Company and its Subsidiaries is $13,100,000 in excess of plan
assets.

     

    (e)The
execution and delivery of this Agreement and the Forty-Sixth Supplemental
Indenture and the issuance and sale of the Bonds hereunder will not involve any
transaction that is subject to the prohibitions of section 406 of ERISA or
in connection with which a tax could be imposed pursuant to
section 4975(c)(1)(A)-(D) of the Code.  The representation by the
Company in the first sentence of this Section 5.12(e) is made in reliance
upon and subject to the accuracy of your representation in Section 6.2 as
to the sources of the funds used to pay the purchase price of the Bonds to be
purchased by you.

     

    Section 5.13.Private Offering by the
Company.  Neither the Company nor anyone acting on its behalf
has offered the Bonds or any similar securities for sale to, or solicited any
offer to buy any of the same from, or otherwise approached or negotiated in
respect thereof, except with not more than fifty (50) Institutional Investors,
each of which has been offered the Bonds at a private sale for
investment.  Neither the Company nor anyone acting on its behalf has
taken, or will take, any action that would
subject the issuance or sale of the Bonds to the registration requirements of
Section 5 of the Securities Act.

     

    Section 5.14.Use of Proceeds; Margin
Regulations.  The Company will apply the proceeds of the sale
of the Bonds as set forth in Schedule 5.14.  No part of the
proceeds from the sale of the Bonds hereunder will be used, directly or
indirectly, for the purpose of buying or carrying any margin stock within the
meaning of Regulation U of the Board of Governors of the Federal Reserve System
(12 CFR 207), or for the purpose of buying or carrying or trading in
any securities under such circumstances as to involve the Company in a violation
of Regulation X of said Board (12 CFR 224) or to involve any broker or
dealer in a violation of Regulation T of said Board (12 CFR
220).  Margin stock does not constitute more than 5% of the value of
the consolidated assets of the Company and its Subsidiaries and the Company does
not have any present intention that margin stock will constitute more than 5% of
the value of such assets.  As used in this Section, the terms “margin
stock” and “purpose of buying or carrying” shall have the meanings assigned to
them in said Regulation U.

     

    Section 5.15.Existing Indebtedness; Future
Liens.  (a) Schedule 5.15 sets forth a complete and
correct list of all outstanding Indebtedness of the Company and its Material
Subsidiaries as of March 31, 2008, since which date there has been no
Material change in the amounts, interest rates, sinking funds, installment
payments or maturities of the Indebtedness of the Company or its Material
Subsidiaries.  Neither the Company nor any Material Subsidiary is in
default and no waiver of default is currently in effect, in the payment of any
principal or interest on any Indebtedness of the Company or such Material
Subsidiary and no event or condition exists with respect to any Indebtedness of
the Company or any Material Subsidiary that would permit (or that with notice or
the lapse of time, or both, would permit) one or more Persons to cause such
Indebtedness to become due and payable before its stated maturity or before its
regularly scheduled dates of payment.

     

    (b)Except
as disclosed in Schedule 5.15, the Company has not agreed or consented to
cause or permit in the future (upon the happening of a contingency or otherwise)
any of its property, whether now owned or hereafter acquired, to be subject to a
Lien, other than Permitted Encumbrances.

     

    Section 5.16.Foreign Assets Control Regulations,
Etc.  (a)  Neither the sale of the Bonds by the
Company hereunder nor its use of the proceeds thereof will violate the Trading
with the Enemy Act, as amended, or any of the foreign assets control regulations
of the United States Treasury Department (31 CFR, Subtitle B,
Chapter V, as amended) or any enabling legislation or executive order
relating thereto.  

     

    (b)Neither
the Company nor any Subsidiary (i) is a Person described or designated in the
Specially Designated Nationals and Blocked Persons List of the Office of Foreign
Assets Control or in Section 1 of the Anti-Terrorism Order or (ii) engages in
any dealings or transactions with any
such Person.  The Company and its Subsidiaries are in compliance, in
all material respects, with the USA Patriot Act.

     

    (c)No
part of the proceeds from the sale of the Bonds hereunder will be used, directly
or indirectly, for any payment to any governmental official or employee,
political party, official of a political party, candidate for political office
or anyone else acting in an official capacity, in order to obtain, retain or
direct business, in violation of the United States Foreign Corrupt Practices Act
of 1977, as amended, assuming in all cases that such Act applies to the
Company.

     

    Section 5.17.Status under Certain
Statutes.  Neither the Company nor any Material Subsidiary is
subject to regulation under the Investment Company Act of 1940, as amended, or
the ICC Termination Act of 1995.

     

    Section 5.18.Investment and Holding Company
Status.  (a)  Neither the Company nor any of its
Regulated Subsidiaries is an “investment company” as defined in, or subject to
regulation under, the Investment Company Act of 1940; (b) no Regulated
Subsidiary is a “holding company” as defined in, or subject to regulation under,
the Public Utility Holding Company Act of 1935 (the “Holding Company Act”);
(c) the Company is a holding company as defined in the Public Utility
Holding Company Act of 2005 (the “Holding Company Act”) which
is exempt from all the provisions of the Holding Company Act and the General
Rules and Regulations under the Holding Company Act (the “Holding Company Rules”); and
(d) the Company has not taken any action and will not take any action unless
required by law which could cause any Purchaser or any other holder of any of
the Bonds to become, solely by reason of ownership of Bonds, subject to
regulation under the Holding Company Act; provided, however, if any
Purchaser becomes, solely by reason of ownership of the Bonds, subject to
regulation under the Holding Company Act, the Company, at its expense, will
cooperate with the Purchaser and support the Purchaser in seeking an exemption
from such regulation or in any other reasonable action which the Purchaser may
take in order that the Purchaser shall not be subject to such regulation solely
by reason of ownership of the Bonds.

     

    Section 5.19.Environmental
Matters.  Other than as provided in the Company’s
Form 10-K for the period ended December 31, 2007 and Form 10-Q
for the period ended March 31, 2008, neither the Company nor any Material
Subsidiary has knowledge of any claim or has received any notice of any claim,
and no proceeding has been instituted raising any claim against the Company or
any of its Material Subsidiaries or any of their respective real properties now
or formerly owned, leased or operated by any of them or other assets, alleging
any damage to the environment or violation of any Environmental Laws, except, in
each case, such as could not reasonably be expected to result in a Material
Adverse Effect.  Except as otherwise disclosed to you in
writing:

     

    (a)neither
the Company nor any Material Subsidiary has knowledge of any facts which would
give rise to any claim, public or private, of violation of Environmental Laws or
damage to the environment emanating from, occurring on or in any way related to
real properties now or formerly owned, leased or operated by any of them or to
other assets or
their use, except, in each case, such as could not reasonably be expected to
result in a Material Adverse Effect;

     

    (b)neither
the Company nor any of its Material Subsidiaries has stored any Hazardous
Materials on real properties now or formerly owned, leased or operated by any of
them and has not disposed of any Hazardous Materials in a manner contrary to any
Environmental Laws in each case in any manner that could reasonably be expected
to result in a Material Adverse Effect; and

     

    (c)all
buildings on all real properties now owned, leased or operated by the Company or
any of its Material Subsidiaries are in compliance with applicable Environmental
Laws, except where failure to comply could not reasonably be expected to result
in a Material Adverse Effect.

     

    
      	
               
      

            	
              Section 6.Representations
      of the Purchaser.

            

    

     

    Section 6.1.Purchase for
Investment.  You represent that you are purchasing the Bonds
for your own account or for one or more separate accounts maintained by you or
for the account of one or more pension or trust funds and not with a view to the
distribution thereof, provided that the disposition
of your or their property shall at all times be within your or their
control.  You understand that the Bonds have not been registered under
the Securities Act and may be resold only if registered pursuant to the
provisions of the Securities Act or if an exemption from registration is
available, except under circumstances where neither such registration nor such
an exemption is required by law, and that the Company is not required to
register the Bonds.

     

    Section 6.2.Source of
Funds.  You represent that at least one of the following
statements is an accurate representation as to each source of funds (a “Source”) to be used by you
to pay the purchase price of the Bonds to be purchased by you
hereunder:

     

    (a) the
Source is an “insurance company general account” (as the term is defined in the
United States Department of Labor’s Prohibited Transaction Exemption (“PTE”) 95-60) in respect of
which the reserves and liabilities (as defined by the annual statement for life
insurance companies approved by the National Association of Insurance
Commissioners (the “NAIC
Annual Statement”)) for the general account contract(s) held by or on
behalf of any employee benefit plan together with the amount of the reserves and
liabilities for the general account contract(s) held by or on behalf of any
other employee benefit plans maintained by the same employer (or affiliate
thereof as defined in PTE 95-60) or by the same employee organization in the
general account do not exceed 10% of the total reserves and liabilities of the
general account (exclusive of separate account liabilities) plus surplus as set
forth in the NAIC Annual Statement filed with such Purchaser’s state of
domicile; or

     

    (b)the
Source is a separate account that is maintained solely in connection with your
fixed contractual obligations under which the amounts payable, or credited, to
any employee benefit plan (or its related trust) that has any interest in such
separate account (or to any participant or beneficiary of such plan (including
any annuitant)) are not affected in any manner by the investment performance of
the separate account; or

     

    (c)the
Source is either (i) an insurance company pooled separate account, within
the meaning of PTE 90-1, or (ii) a bank collective investment fund, within
the meaning of the PTE 91-38 and, except as you have disclosed to the Company in
writing pursuant to this paragraph (c), no employee benefit plan or group of
plans maintained by the same employer or employee organization beneficially owns
more than 10% of all assets allocated to such pooled separate account or
collective investment fund; or

     

    (d)the
Source constitutes assets of an “investment fund” (within the meaning of Part V
of PTE 84-14 (the “QPAM
Exemption”)) managed by a “qualified professional asset manager” or “QPAM” (within the meaning of
Part V of the QPAM Exemption), no employee benefit plan’s assets that are
included in such investment fund, when combined with the assets of all other
employee benefit plans established or maintained by the same employer or by an
affiliate (within the meaning of Section V(c)(1) of the QPAM Exemption) of
such employer or by the same employee organization and managed by such QPAM,
exceed 20% of the total client assets managed by such QPAM, the conditions of
Part I(c) and (g) of the QPAM Exemption are satisfied, neither the QPAM nor a
person controlling or controlled by the QPAM (applying the definition of
“control” in Section V(e) of the QPAM Exemption) owns a 5% or more interest
in the Company and (i) the identity of such QPAM and (ii) the names of
all employee benefit plans whose assets are included in such investment fund
have been disclosed to the Company in writing pursuant to this paragraph (d);
or

     

    (e)the
Source is a governmental plan; or

     

    (f)the
Source is one or more employee benefit plans, or a separate account or trust
fund comprised of one or more employee benefit plans, each of which has been
identified to the Company in writing pursuant to this paragraph (f);
or

     

    (g)the
Source does not include assets of any employee benefit plan, other than a plan
exempt from the coverage of ERISA; or

     

    (h)the
Source constitutes assets of a “plan(s)” (within the meaning of Section IV
of PTE 96-23 (the “INHAM
Exemption”)) managed by an “in-house asset manager” or “INHAM” (within
the meaning of Part IV of the INHAM Exemption), the conditions of
Part I(a), (g) and (h) of the INHAM Exemption are satisfied, neither the
INHAM nor a person controlling or controlled by the INHAM (applying the
definition of “control” in Section IV(d) of the INHAM Exemption) owns a 5%
or more interest in the Company and (i) the identity of such INHAM and
(ii) the name(s) of the employee benefit plan(s) whose assets constitute
the Source have been disclosed to the Company in writing pursuant to this clause
(h).

     

    As used
in this Section 6.2, the terms “employee benefit plan”, “governmental
plan”, and “separate account” shall have the respective meanings assigned to
such terms in Section 3 of ERISA.

     

    
      	
               
      

            	
              Section 7.Covenants.

            

    

     

    
      	
               
      

            	
              The
      Company covenants that so long as any of the Bonds are
      outstanding:

            

    

     

    Section 7.1.Financial and Business
Information.  The Company shall deliver to each holder of Bonds
that is an Institutional Investor:

     

    (a)Quarterly Statements — within
60 days after the end of each quarterly fiscal period in each fiscal year of the
Company (other than the last quarterly fiscal period of each such fiscal year),
duplicate copies of:

     

    (i)a
consolidated balance sheet of the Company and its Subsidiaries as at the end of
such quarter, and

     

    (ii)consolidated
statements of income, changes in shareholders’ equity and cash flows of the
Company and its Subsidiaries for such quarter and (in the case of the second and
third quarters) for the portion of the fiscal year ending with such
quarter,

     

    setting
forth in each case in comparative form the figures for the corresponding periods
in the previous fiscal year, all in reasonable detail, prepared in accordance
with GAAP applicable to quarterly financial statements generally, and certified
by a Senior Financial Officer as fairly presenting, in all material respects,
the financial position of the companies being reported on and their results of
operations and cash flows, subject to changes resulting from year-end
adjustments, provided
that delivery within the time period specified above of copies of the Company’s
Quarterly Report on Form 10-Q prepared in compliance with the requirements
therefor and filed with the Securities and Exchange Commission shall be deemed
to satisfy the requirements of this Section 7.1(a);

     

    (b)Annual Statements — within
120 days after the end of each fiscal year of the Company, duplicate copies
of:

     

    (i)a
consolidated balance sheet of the Company and its Subsidiaries, as at the end of
such year, and

     

    (ii)consolidated
statements of income, changes in shareholders’ equity and cash flows of the
Company and its Subsidiaries, for such year,

     

    setting
forth in each case in comparative form the figures for the previous fiscal year,
all in reasonable detail, prepared in accordance with GAAP, and
accompanied

     

    (A)by an
opinion thereon of independent certified public accountants of recognized
national standing, which opinion shall state that such financial statements
present fairly, in all material respects, the financial position of the
companies being reported upon and their results of operations and cash flows and
have been prepared in conformity with GAAP, and that the examination of such
accountants in connection with such financial statements has been made in
accordance with generally accepted auditing standards, and that such audit
provides a reasonable basis for such opinion in the circumstances,
and

     

    (B)a
certificate of the firm of independent certified public accountants that audited
the consolidated financial statements for the Company and its Subsidiaries for
the immediately preceding fiscal year to the effect that such firm has reviewed
this Agreement and the Indenture, and that, in making the examination in
connection with its report on such consolidated financial statements, it has
obtained no knowledge of any Default or Event of Default (or if knowledge of
Default or Event of Default has been obtained, specifying each such Default or
Event of Default), by the Company during such fiscal year in the observance
performance, or fulfillment of any of the conditions or covenants contained in
the Indenture, compliance with which is subject to verification by accountants,
(it being understood that such accountants shall not be liable, directly or
indirectly, for any failure to obtain knowledge of any Default or Event of
Default unless such accountants should have obtained knowledge thereof in making
an audit in accordance with generally accepted auditing standards or did not
make such an audit).

     

    provided that the delivery
within the time period specified above of the Company’s Annual Report on Form
10-K for such fiscal year (together with the Company’s annual report to
shareholders, if any, prepared pursuant to Rule 14a-3 under the Exchange
Act) prepared in accordance with the requirements therefor and filed with the
Securities and Exchange Commission, together with the accountant’s certificate
described in clause (B) above, shall be deemed to satisfy the requirements of
this Section 7.1(b);

     

    (c)SEC and Other Reports —
promptly upon their becoming available, one copy of (i) each financial
statement, report, notice or proxy statement sent by the Company or any
Subsidiary to public securities holders generally, and (ii) each regular or
periodic report, each registration statement (without exhibits except as
expressly requested by such holder), and each prospectus (other than in
connection with any dividend reinvestment or employee stock ownership plans) and
all amendments thereto filed by the Company or any Subsidiary with the
Securities and Exchange Commission and of
all press releases and other statements made available generally by the Company
or any Subsidiary to the public concerning developments that are
Material;

     

    (d)Notice of Default or Event of
Default — promptly, and in any event within ten (10) days after a
Responsible Officer becoming aware of the existence of any Default or Event of
Default, a written notice specifying the nature and period of existence thereof
and what action the Company is taking or proposes to take with respect
thereto;

     

    (e)ERISA Matters — promptly, and
in any event within ten (10) days after a Responsible Officer becoming aware of
any of the following, a written notice setting forth the nature thereof and the
action, if any, that the Company or an ERISA Affiliate proposes to take with
respect thereto:

     

    (i)with
respect to any Plan, any reportable event, as defined in section 4043(c) of
ERISA and the regulations thereunder, for which notice thereof has not been
waived pursuant to such regulations as in effect on the date hereof;
or

     

    (ii)the
taking by the PBGC of steps to institute, or the threatening by the PBGC of the
institution of, proceedings under section 4042 of ERISA for the termination
of, or the appointment of a trustee to administer, any Plan, or the receipt by
the Company or any ERISA Affiliate of a notice from a Multiemployer Plan that
such action has been taken by the PBGC with respect to such Multiemployer Plan;
or

     

    (iii)any
event, transaction or condition that could result in the incurrence of any
liability by the Company or any ERISA Affiliate pursuant to Title I or IV of
ERISA or the penalty or excise tax provisions of the Code relating to employee
benefit plans, or in the imposition of any Lien on any of the rights, properties
or assets of the Company or any ERISA Affiliate pursuant to Title I or IV of
ERISA or such penalty or excise tax provisions, if such liability or Lien, taken
together with any other such liabilities or Liens then existing, could
reasonably be expected to have a Material Adverse Effect;

     

    (f)Notices from Governmental Authority
— promptly, and in any event within 30 days after receipt thereof, copies
of any notice to the Company or any Subsidiary from any Federal or state
Governmental Authority relating to any order, ruling, statute or other law or
regulation that could reasonably be expected to have a Material Adverse
Effect;

     

    (g)Requested Information — with
reasonable promptness, such other data and information relating to the business,
operations, affairs, financial condition, assets or properties of the Company or
any of its Subsidiaries or relating to the ability of the Company to perform its
obligations hereunder, under the Indenture and under the Bonds as from time to
time may be reasonably requested by any such holder of Bonds; and

     

    (h)Litigation Notice — prompt
written notice of any action, suit or administrative proceeding to which the
Company or any Subsidiary is a party which, if adversely determined, could
result in a Material Adverse Effect.

     

    Section 7.2.Officer’s
Certificates.  (a)  Covenant
Compliance.  Each set of financial statements delivered to a
holder of Bonds pursuant to Section 7.1(a) or 7.1(b) hereof shall be
accompanied by a certificate of a Senior Financial Officer setting forth the
information (including detailed calculations) required in order to establish
whether the Company was in compliance with the requirements of Section 5.07
through Section 5.10 of the Indenture, inclusive, during the quarterly
period covered by the statements then being furnished (including with respect to
each such Section, where applicable, the calculations of the maximum or minimum
amount, ratio or percentage, as the case may be, permissible under the terms of
such Sections, and the calculation of the amount, ratio or percentage then in
existence); and

     

    (b)Event of
Default.  Each set of financial statements delivered to a
holder of Bonds pursuant to Section 7.1(a) or 7.1(b) hereof shall be
accompanied by a certificate of a Senior Financial Officer containing a
statement that such officer has reviewed the relevant terms hereof and has made,
or caused to be made, under his or her supervision, a review of the transactions
and conditions of the Company and its Subsidiaries from the beginning of the
quarterly or annual period covered by the statements then being furnished to the
date of the certificate and that such review shall not have disclosed the
existence during such period of any condition or event that constitutes a
Default or an Event of Default or, if any such condition or event existed or
exists (including, without limitation, any such event or condition resulting
from the failure of the Company or any Subsidiary to comply with any
Environmental Law), specifying the nature and period of existence thereof and
what action the Company shall have taken or proposes to take with respect
thereto.

     

    Section 7.3.Inspection.  The
Company shall permit the representatives of each holder of Bonds that is an
Institutional Investor:

     

    (a)No Default — if no Default or
Event of Default then exists, at the expense of such holder and upon reasonable
prior notice to the Company, to visit the principal executive office of the
Company, to discuss the affairs, finances and accounts of the Company and its
Subsidiaries with the Company’s officers, and (with the consent of the Company,
which consent will not be unreasonably withheld) its independent public
accountants, and (with the consent of the Company, which consent will not be
unreasonably withheld) to visit the other offices and properties of the Company
and each Subsidiary, all at such reasonable times and as often as may be
reasonably requested in writing; and

     

    (b)Default — if a Default or
Event of Default then exists, at the expense of the Company to visit and inspect
any of the offices or properties of the Company or any Subsidiary, to examine
all their respective books of account, records, reports and other papers, to
make copies and extracts therefrom, and to discuss their respective affairs,
finances
and accounts with their respective officers and independent public accountants
(and by this provision the Company authorizes said accountants to discuss the
affairs, finances and accounts of the Company and its Subsidiaries), all at such
times and as often as may be requested.

     

    Section 7.4.Recording.  The
Company, within 30 days following the Closing Date, (i) shall cause the
Forty-Sixth Supplemental Indenture to have been filed and/or recorded with all
appropriate authorities to assure the enforceability and perfection of the lien
of the Indenture and (ii) will deliver to your special counsel a
supplemental opinion, in form and substance satisfactory to you, of Counsel for
the Company addressed to you stating that the filing and/or recording has been
accomplished and setting forth the specific information with respect
thereto.

     

    Section 7.5.Compliance With
Law.  The Company will not permit any of its Material
Subsidiaries to fail to comply with all valid laws, ordinances, and regulations
and requirements applicable to them or their property where any noncompliance
could reasonably be expected to have a Material Adverse Effect.

     

    
      	
               
      

            	
              Section 8.Home
      Office Payment.

            

    

     

    So long
as you or your nominee shall be the holder of any Bond, and notwithstanding
anything contained in this Agreement, the Indenture or in such Bond to the
contrary, the Company will pay, or cause the Trustee to pay, all sums becoming
due on such Bond for principal, Make-Whole Amount, if any, and interest by the
method and at the address specified for such purpose below your name in
Schedule A, or by such other method or at such other address as you shall
have from time to time specified to the Company and the Trustee in writing for
such purpose, without the presentation or surrender of such Bond or the making
of any notation thereon, except that upon written request of the Company or
Trustee made concurrently with or reasonably promptly after payment or
prepayment in full of any Bond, you shall surrender such Bond for cancellation,
reasonably promptly after any such request, to the Trustee.  Prior to
any sale or other disposition of any Bond held by you or your nominee you will,
at your election, either endorse thereon the amount of principal paid thereon
and the last date to which interest has been paid thereon or surrender such Bond
to the Trustee in exchange for a new Bond or Bonds pursuant to
Section 12.04 of the Indenture.  The Company will afford the
benefits of this Section 8 to any Institutional Investor that is the direct
or indirect transferee of any Bond purchased by you under this Agreement and
that has made the same agreement relating to such Bond as you have made in this
Section 8.

     

    
      	
               
      

            	
              Section 9.Expenses,
      Etc.

            

    

     

    Section 9.1.Transaction
Expenses.  Whether or not the transactions contemplated hereby
are consummated, the Company will pay all costs and expenses (including
reasonable attorneys’ fees of a special counsel and, if reasonably required,
local or other counsel) incurred by you and each Other Purchaser or holder of a
Bond in connection with such transactions and in connection with any amendments,
waivers or consents under or in respect of this Agreement, the Indenture or the
Bonds to the extent that such amendment, waiver or consent was at the request of
the Company (whether or not such amendment, waiver or consent becomes
effective).  In connection with the initial issue of the Bonds, the
Company will pay, and will save you and each other holder of a Bond harmless
from, all claims in respect of any fees, costs or expenses, if any, of brokers
and finders (other than those retained by you).

     

    Section 9.2.Survival.  The
obligations of the Company under this Section 9 will survive the payment or
transfer of any Bond, the enforcement, amendment or waiver of any provision of
this Agreement, the Indenture or the Bonds, and the termination of this
Agreement.

     

    
      	
               
      

            	
              Section 10.Survival
      of Representations and Warranties; Entire
  Agreement.

            

    

     

    All
representations and warranties contained herein, as of the date made, shall
survive the execution and delivery of this Agreement, the Forty-Sixth
Supplemental Indenture and the Bonds, the purchase or transfer by you of any
Bond or portion thereof or interest therein and the payment of any Bond, and may
be relied upon by any subsequent holder of a Bond, regardless of any
investigation made at any time by or on behalf of you or any other holder of a
Bond.  All statements contained in any certificate or other instrument
delivered by or on behalf of the Company pursuant to this Agreement or the
Forty-Sixth Supplemental Indenture shall be deemed representations and
warranties of the Company as of the date made.  Subject to the
preceding sentence, this Agreement, the Indenture and the Bonds embody the
entire agreement and understanding between you and the Company and supersede all
prior agreements and understandings relating to the subject matter
hereof.

     

    
      	
               
      

            	
              Section 11.Amendment
      and Waiver.

            

    

     

        Section 11.1.Requirements.  This
Agreement may be amended, and the observance of any term hereof may be waived
(either retroactively or prospectively), with (and only with) the written
consent of the Company and the Required Holders, except that (a) no
amendment or waiver of any of the provisions of Section 1, 2, 3, 4, 5, 6 or
16 hereof, or any defined term (as it is used therein), will be effective as to
you unless consented to by you in writing and (b) no such amendment or
waiver may, without the written consent of the holder of each Bond at the time
outstanding affected thereby, amend any of Section 11 or 15.

     

    The
Indenture and the Forty-Sixth Supplemental Indenture may be amended or
supplemented in accordance with Article 9 of the Indenture.

     

    Section 11.2.Solicitation of Holders of
Bonds.

     

    (a)Solicitation.  The
Company will provide each holder of the Bonds (irrespective of the amount of
Bonds then owned by it) with sufficient information, sufficiently far in advance
of the date a decision is required, to enable such holder to make an informed
and considered decision with respect to any proposed amendment, waiver or
consent in respect of any of the provisions hereof.  The Company will
deliver executed or true and correct copies of each amendment, waiver or consent
effected pursuant to the provisions of this Section 11 to each holder of
outstanding Bonds promptly following the date on which it is executed and
delivered by, or receives the consent or approval of, the requisite holders of
Bonds.

     

    (b)Payment.  The
Company will not directly or indirectly pay or cause to be paid any
remuneration, whether by way of supplemental or additional interest, fee or
otherwise, or grant any security, to any holder of Bonds as consideration for or
as an inducement to the entering into by any holder of Bonds of any waiver or
amendment of any of the terms and provisions hereof unless such remuneration is
concurrently paid, or security is concurrently granted, on the same terms,
ratably to each holder of Bonds then outstanding even if such holder did not
consent to such waiver or amendment.

     

        Section 11.3.Binding Effect,
Etc.  Any amendment or waiver consented to as provided in this
Section 11 applies equally to all holders of Bonds and is binding upon them
and upon each future holder of any Bond and upon the Company without regard to
whether such Bond has been marked to indicate such amendment or
waiver.  No such amendment or waiver will extend to or affect any
obligation, covenant, agreement, Default or Event of Default not expressly
amended or waived or impair any right consequent thereon.  No course
of dealing between the Company and the holder of any Bond nor any delay in
exercising any rights hereunder or under any Bond shall operate as a waiver of
any rights of any holder of such Bond.  

     

        Section 11.4.Bonds Held by Company,
Etc.  Solely for the purpose of determining whether the holders
of the requisite percentage of the aggregate principal amount of Bonds then
outstanding approved or consented to any amendment, waiver or consent to be
given under this Agreement, or have directed the taking of any action provided
herein or in the Bonds to be taken upon the direction of the holders of a
specified percentage of the aggregate principal amount of Bonds then
outstanding, Bonds directly or indirectly owned by the Company or any of its
Affiliates shall be deemed not to be outstanding.

     

    
      	
               
      

            	
              Section 12.Notices.

            

    

     

    All
notices and communications, other than financial information required to be sent
in Section 7.1(a), (b) and (c), provided for hereunder shall be
sufficiently given if in writing and sent (a) by telecopy if the sender on
the same day sends a confirming copy of such notice by a recognized overnight
delivery service (charges prepaid), or (b) by registered or certified mail
with
return receipt requested (postage prepaid), or (c) by a recognized
overnight delivery service (with charges prepaid), provided, that the financial
information required to be sent in Section 7.1(a), (b) and (c) may be sent
by first class mail.  Any such notice, communication or financial
information must be sent:

     

    (i)if to
you or your nominee, to you or it at the address specified for such
communications in Schedule A, or at such other address as you or it shall
have specified to the Company and the Trustee in writing,

     

    (ii)if to
any other holder of any Bond, to such holder at such address as such other
holder shall have specified to the Company and the Trustee in writing,
or

     

    (iii)if
to the Company, to the Company at its address set forth at the beginning hereof
to the attention of Treasurer, or at such other address as the Company shall
have specified to the holder of each Bond in writing.

     

    
      	
               
      

            	
              Section 13.Reproduction
      of Documents.

            

    

     

    This
Agreement and the Indenture and all documents relating thereto, including,
without limitation, (a) consents, waivers and modifications that may
hereafter be executed, (b) documents received by you at the Closing (except
the Bonds themselves), and (c) financial statements, certificates and other
information previously or hereafter furnished to you, may be reproduced by you
by any photographic, photostatic, microfilm, microcard, miniature photographic
or other similar process and you may destroy any original document so
reproduced.  The Company agrees and stipulates that, to the extent
permitted by applicable law, any such reproduction shall be admissible in
evidence as the original itself in any judicial or administrative proceeding
(whether or not the original is in existence and whether or not such
reproduction was made by you in the regular course of business) and any
enlargement, facsimile or further reproduction of such reproduction shall
likewise be admissible in evidence.  This Section 13 shall not
prohibit the Company or any other holder of Bonds from contesting any such
reproduction to the same extent that it could contest the original, or from
introducing evidence to demonstrate the inaccuracy of any such
reproduction.

     

    
      	
               
      

            	
              Section 14.Definitions.

            

    

     

    As used
herein, the following terms have the respective meanings set forth below or set
forth in the Section hereof following such term:

     

    “Affiliate” means, at any
time, and with respect to any Person, (a) any other Person that at such
time directly or indirectly through one or more intermediaries Controls, or is
Controlled by, or is under common Control with, such first Person, and
(b) any Person beneficially owning or holding, directly or indirectly, 10%
or more of any class of voting or equity interests (excluding any preferred
stock) of the Company or any Subsidiary or any corporation of which the
Company and its Subsidiaries beneficially own or hold, in the aggregate,
directly or indirectly, 10% or more of any class of voting or equity
interests.  As used in this definition, “Control” means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.  Unless the
context otherwise clearly requires, any reference to an “Affiliate” is a reference to
an Affiliate of the Company.

     

    “Anti-Terrorism Order” means
Executive Order No. 13,224 of September 24, 2001, Blocking Property and
Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support
Terrorism, 66 U.S. Fed. Reg. 49, 079 (2001), as amended.

     

    “Bonds” is defined in
Section 1.

     

    “Business Day” means any day
other than a Saturday, a Sunday or a day on which commercial banks in Hartford,
Connecticut or New York, New York are required or authorized to be
closed.

     

    “Capital Lease” means, at any
time, a lease with respect to which the lessee is required concurrently to
recognize the acquisition of an asset and the incurrence of a liability in
accordance with GAAP.

     

    “Closing” is defined in
Section 3.

     

    “Closing Date” shall mean the
date of the Closing.

     

    “Code” means the Internal
Revenue Code of 1986, as amended from time to time, and the rules and
regulations promulgated thereunder from time to time.

     

    “Company” means Central
Vermont Public Service Corporation, a Vermont corporation.

     

    “Confidential Information” is
defined in Section 15.

     

    “Default” means an event or
condition the occurrence or existence of which would, with the lapse of time or
the giving of notice or both, become an Event of Default (as defined in
Section 6.01 of the Indenture).

     

    “Environmental Laws” means
any and all Federal, state, local, and foreign statutes, laws, regulations,
ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
franchises, licenses, agreements or governmental restrictions relating to
pollution and the protection of the environment or the release of any materials
into the environment, including but not limited to those related to hazardous
substances or wastes, air emissions and discharges to waste or public
systems.

     

    “ERISA” means the Employee
Retirement Income Security Act of 1974, as amended from time to time, and the
rules and regulations promulgated thereunder from time to time in
effect.

     

    “ERISA Affiliate” means any
trade or business (whether or not incorporated) that is treated as a single
employer together with the Company under section 414 of the
Code.

     

    “Event of Default” is defined
in Section 6.01 of the Indenture.

     

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

     

    “Forty-Sixth Supplemental
Indenture” is defined in Section 1.

     

    “Forty-Fourth Supplemental
Indenture” is defined in Section 1.

     

    “GAAP” means generally
accepted accounting principles consistently applied or such other system of
accounts prescribed by the VPSB at the time in effect or any substitute system
of accounts prescribed by any successor commission or commissions empowered to
regulate the rates and charges of the Company for the transmission and
distribution of electric power.

     

    “Governmental Authority”
means

     

    (a)the government of

     

    (i)the
United States of America or any State or other political subdivision thereof,
or

     

    (ii)any
jurisdiction in which the Company or any Subsidiary conducts all or any part of
its business, or which asserts jurisdiction over any properties of the Company
or any Subsidiary, or

     

    (b)any
entity exercising executive, legislative, judicial, regulatory or administrative
functions of, or pertaining to, any such government.

     

    “Guaranty” means, with
respect to any Person, any obligation (except the endorsement in the ordinary
course of business of negotiable instruments for deposit or collection) of such
Person guaranteeing any indebtedness, dividend or other obligation of any other
Person in any manner, whether directly or indirectly, including (without
limitation) obligations incurred through an agreement, contingent or otherwise,
by such Person:

     

    (a)to
purchase such indebtedness or obligation or any property constituting security
therefor;

     

    (b)to
advance or supply funds (i) for the purchase or payment of such
indebtedness or obligation, or (ii) to maintain any working capital or
other balance sheet condition
or any income statement condition of any other Person or otherwise to advance or
make available funds for the purchase or payment of such indebtedness or
obligation;

     

    (c)to
lease properties or to purchase properties or services primarily for the purpose
of assuring the owner of such indebtedness or obligation of the ability of any
other Person to make payment of the indebtedness or obligation; or

     

    (d)otherwise
to assure the owner of such indebtedness or obligation against loss in respect
thereof.

     

    In any
computation of the indebtedness or other liabilities of the obligor under any
Guaranty, the indebtedness or other obligations that are the subject of such
Guaranty shall be assumed to be direct obligations of such obligor.

     

    “Hazardous Material” means
any and all pollutants, toxic or hazardous wastes or any other substances that
might pose a hazard to health or safety, the removal of which may be required or
the generation, manufacture, refining, production, processing, treatment,
storage, handling, transportation, transfer, use, disposal, release, discharge,
spillage, seepage, or filtration of which is or shall be restricted, prohibited
or penalized by any applicable law (including, without limitation, asbestos,
urea formaldehyde foam insulation and polychlorinated biphenyls).

     

    “holder” means, with respect
to any Bond, the Person in whose name such Bond is registered in the register
maintained by the Trustee pursuant to Section 2.09 of the
Indenture.

     

    “Indebtedness” with respect
to any Person means, at any time, without duplication,

     

    (a)its
liabilities for borrowed money;

     

    (b)its
liabilities for the deferred purchase price of property acquired by such Person
(excluding accounts payable or a performance bond or similar obligation arising
in the ordinary course of business but including, without limitation, all
liabilities created or arising under any conditional sale or other title
retention agreement with respect to any such property);

     

    (c)its
Capital Leases;

     

    (d)all
liabilities for borrowed money secured by any Lien with respect to any property
owned by such Person (whether or not it has assumed or otherwise become liable
for such liabilities); and

     

    (e)any
Guaranty of such Person with respect to liabilities of a type described in any
of clauses (a) through (d) hereof.

     

    Indebtedness
of any Person shall include all obligations of such Person of the character
described in clauses (a) through (e) to the extent such Person remains legally
liable in respect thereof notwithstanding that any such obligation is deemed to
be extinguished under GAAP.

     

    “Indenture” is defined in
Section 1.

     

    “INHAM Exemption” means
Prohibited Transaction Class Exemption 96-23 issued by the United States
Department of Labor.

     

    “Institutional Investor”
means (a) any original purchaser of a Bond, or (b) any bank, trust
company, savings and loan association or other financial institution, any
pension plan, any investment company, any insurance company, any broker or
dealer, or any other similar financial institution or entity, regardless of
legal form.

     

    “Lien” means, with respect to
any Person, any mortgage, lien, pledge, charge, security interest or other
encumbrance, or any interest or title of any vendor, lessor, lender or other
secured party to or of such Person under any conditional sale or other title
retention agreement or Capital Lease, upon or with respect to any property or
asset of such Person (including in the case of stock, stockholder agreements,
voting trust agreements and all similar arrangements).

     

    “Make-Whole Amount” is
defined in Article One, Section 2 of the Forty-Sixth Supplemental
Indenture.

     

    “Material” means material in
relation to the business, operations, affairs, financial condition, assets or
properties of the Company and its Subsidiaries taken as a whole.

     

    “Material Adverse Effect”
means a material adverse effect on (a) the business, operations, affairs,
financial condition, assets or properties of the Company and its Subsidiaries
taken as a whole, or (b) the ability of the Company to perform its
obligations under this Agreement, the Indenture and the Bonds, or (c) the
validity or enforceability of this Agreement, the Indenture or the Bonds; provided, however, that in no
event shall any change, event, violation, inaccuracy, circumstance or effect
that results from (i) changes generally affecting the industry in which the
Company currently operates or conducts business or (ii) changes generally
affecting the United States economy constitute a Material Adverse
Effect.

     

    “Material Subsidiary” means
any Regulated Subsidiary, Catamount Resources Corporation and Eversant
Corporation.

     

    “Memorandum” is defined in
Section 5.3.

     

    “Mortgaged Property” is
defined in Section 1.02 of the Indenture.

     

    “Multiemployer Plan” means
any Plan that is a “multiemployer plan” (as such term is defined in
section 4001(a)(3) of ERISA).

     

    “Officer’s Certificate” means
a certificate of a Senior Financial Officer or of any other officer of the
Company whose responsibilities extend to the subject matter of such
certificate.

     

    “Original Indenture” is
defined in Section 1.

     

    “Other Agreements” is defined
in Section 2.

     

    “Other Purchasers” is defined
in Section 2.

     

    “PBGC” means the Pension
Benefit Guaranty Corporation referred to and defined in ERISA or any successor
thereto.

     

    “Permitted Encumbrances” is
defined in Section 1.02 of the Indenture.

     

    “Person” means an individual,
partnership, corporation, limited liability company, association, trust,
unincorporated organization, or a government or agency or political subdivision
thereof.

     

    “Plan” means an “employee
benefit plan” (as defined in section 3(3) of ERISA) that is or, within the
preceding five years, has been established or maintained, or to which
contributions are or, within the preceding five years, have been made or
required to be made, by the Company or any ERISA Affiliate or with respect to
which the Company or any ERISA Affiliate may have any liability.

     

    “property” or “properties” means, unless
otherwise specifically limited, real or personal property of any kind, tangible
or intangible, choate or inchoate.

     

    “PTE” is defined in Section
6.2(a).

     

    “Purchaser” means any
purchaser of Bonds under this Agreement.

     

    “QPAM Exemption” means
Prohibited Transaction Class Exemption 84-14 issued by the United States
Department of Labor.

     

    “Regulated Subsidiary” means
(i) a subsidiary of the Company which is regulated by the Vermont Public
Service Board or any successor regulatory commission or agency to either and any
other subsidiary that is subject to federal or state regulation as a public
utility company and (ii) Custom Investment Corporation and C.V. Realty,
Inc.

     

    “Required Holders” means, at
any time, the holders of at least 51% in principal amount of the Bonds at the
time outstanding (exclusive of Bonds then owned by the Company or any of its
Affiliates).

     

    “Responsible Officer” means
any Senior Financial Officer and any other officer of the Company with
responsibility for the administration of the relevant portion of this Agreement
and/or the Indenture.

     

    “Securities Act” means the
Securities Act of 1933, as amended from time to time.

     

    “Senior Financial Officer”
means the chief financial officer, principal accounting officer, treasurer or
comptroller of the Company.

     

    “Subsidiary” means, as to any
Person, any corporation, association or other business entity in which such
Person or one or more of its Subsidiaries or such Person and one or more of its
Subsidiaries owns sufficient equity or voting interests to enable it or them (as
a group) ordinarily, in the absence of contingencies or an agreement limiting
such right, to elect a majority of the directors (or Persons performing similar
functions) of such entity, and any partnership or joint venture if more than a
50% interest in the profits or capital thereof is owned by such Person or one or
more of its Subsidiaries or such Person and one or more of its Subsidiaries
(unless such partnership can and does ordinarily take major business actions
without the prior approval of such Person or one or more of its
Subsidiaries).  Unless the context otherwise clearly requires, any
reference to a “Subsidiary” is a reference to a Subsidiary of the
Company.

     

    “USA Patriot Act” means
United States Public Law 107-56, Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT)
Act of 2001, as amended from time to time, and the rules and regulations
promulgated thereunder from time to time in effect.

     

    “VPSB” is defined in
Section 4.12.

     

    
      	
               
      

            	
              Section 15.Confidential
      Information.

            

    

     

    For the
purposes of this Section 15, “Confidential Information”
means information delivered to you by or on behalf of the Company or any
Subsidiary in connection with the transactions contemplated by or otherwise
pursuant to this Agreement or the Indenture that is proprietary in nature and
that was clearly marked or labeled or otherwise adequately identified when
received by you as being confidential information of the Company or such
Subsidiary, provided
that such term does not include information that (a) was publicly known or
otherwise known to you prior to the time of such disclosure,
(b) subsequently becomes publicly known through no act or omission by you
or any person acting on your behalf, (c) otherwise legally becomes known to
you other than through disclosure by the Company or any Subsidiary or
(d) constitutes financial statements delivered to you under
Section 7.1 that are otherwise publicly available.  You will
maintain the confidentiality of such Confidential Information in accordance with
procedures adopted by you in good faith to protect confidential information of
third parties delivered to you, provided that you may deliver
or disclose Confidential Information to (i) your directors, officers,
employees, agents, attorneys and affiliates (to the extent such disclosure
reasonably relates to the administration of the investment represented by your
Bonds), (ii) your financial
advisors and other professional advisors who agree to hold confidential the
Confidential Information substantially in accordance with the terms of this
Section 15, (iii) any other holder of any Bond, (iv) any
Institutional Investor to which you sell or offer to sell such Bond or any part
thereof or any participation therein (if such Person has agreed in writing prior
to its receipt of such Confidential Information to be bound by the provisions of
this Section 15), (v) any Person from which you offer to purchase any
security of the Company (if such Person has agreed in writing prior to its
receipt of such Confidential Information to be bound by the provisions of this
Section 15), (vi) any federal, state or provincial regulatory
authority having jurisdiction over you, (vii) the National Association of
Insurance Commissioners or any similar organization, or any nationally
recognized rating agency that requires access to information about your
investment portfolio or (viii) any other Person to which such delivery or
disclosure may be necessary or appropriate (w) to effect compliance with
any law, rule, regulation or order applicable to you, (x) in response to
any subpoena or other legal process, (y) in connection with any litigation
to which you are a party or (z) if an Event of Default has occurred and is
continuing, to the extent you may reasonably determine such delivery and
disclosure to be necessary or appropriate in the enforcement or for the
protection of the rights and remedies under your Bonds, the Indenture and this
Agreement.  Each holder of a Bond, by its acceptance of a Bond, will
be deemed to have agreed to be bound by and to be entitled to the benefits of
this Section 15 as though it were a party to this Agreement.  On
reasonable request by the Company in connection with the delivery to any holder
of a Bond of information required to be delivered to such holder under this
Agreement or the Indenture or requested by such holder (other than a holder that
is a party to this Agreement or its nominee), such holder will enter into an
agreement with the Company embodying the provisions of this
Section 15.

     

    
      	
               
      

            	
              Section 16.Substitution
      of Purchaser.

            

    

     

    You shall
have the right to substitute any one of your Affiliates as the purchaser of the
Bonds that you have agreed to purchase hereunder, by written notice to the
Company, which notice shall be signed by both you and such Affiliate, shall
contain such Affiliate’s agreement to be bound by this Agreement and shall
contain a confirmation by such Affiliate of the accuracy with respect to it of
the representations set forth in Section 6.  Upon receipt of such
notice, wherever the word “you” is used in this Agreement (other than in this
Section 16), such word shall be deemed to refer to such Affiliate in lieu
of you.  In the event that such Affiliate is so substituted as a
purchaser hereunder and such Affiliate thereafter transfers to you all of the
Bonds then held by such Affiliate, upon receipt by the Company of notice of such
transfer, wherever the word “you” is used in this Agreement (other than in this
Section 16), such word shall no longer be deemed to refer to such
Affiliate, but shall refer to you, and you shall have all the rights of an
original holder of the Bonds under this Agreement and the
Indenture.

     

    
      	
               
      

            	
              Section 17.Miscellaneous.

            

    

     

    Section 17.1.Successors and
Assigns.  All covenants and other agreements contained in this
Agreement by or on behalf of any of the parties
hereto bind and inure to the benefit of their respective successors and assigns
(including, without limitation, any subsequent holder of a Bond) whether so
expressed or not.

     

    Section 17.2.Severability.  Any
provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall (to the full extent permitted by law) not invalidate or
render unenforceable such provision in any other jurisdiction.

     

    Section 17.3.Construction.  Each
covenant contained herein shall be construed (absent express provision to the
contrary) as being independent of each other covenant contained herein, so that
compliance with any one covenant shall not (absent such an express contrary
provision) be deemed to excuse compliance with any other
covenant.  Where any provision herein refers to action to be taken by
any Person, or which such Person is prohibited from taking, such provision shall
be applicable whether such action is taken directly or indirectly by such
Person.

     

    Section 17.4.Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall be
an original but all of which together shall constitute one
instrument.  Each counterpart may consist of a number of copies
hereof, each signed by less than all, but together signed by all, of the parties
hereto.

     

    Section 17.5.Governing
Law.  This Agreement shall be construed and enforced in
accordance with, and the rights of the parties shall be governed by, the law of
the State of Vermont excluding choice-of-law
principles of the law of such State that would require the application of the
laws of a jurisdiction other than such State.

     

    [Signatures
on Following Page]

     

    If you
are in agreement with the foregoing, please sign the form of agreement on the
accompanying counterpart of this Agreement and return it to the Company,
whereupon the foregoing shall become a binding agreement between you and the
Company.

    

    
      	
               
      

            	
              Very
      truly yours,

            

    

    

    
      	
               
      

            	
              Central
      Vermont Public Service Corporation

            

    

     

    

    
      	
               
      

            	
              By  /s/
      Pamela J. Keefe

            

    

    
      	
               
      

            	
              Name:
      Pamela J. Keefe

            

    

    
      	
               
      

            	
              Title:   Vice
      President, Chief Financial

            

    

    
      	
               
      

            	
                              Officer
      and Treasurer

            

    

    

    

    
      	
               
      

            	
              The
      foregoing is hereby agreed

            

    

    
      	
               
      

            	
              to
      as of the date thereof.

            

    

    

    
      	
               
      

            	
              Allstate
      Life Insurance Company of New York

            

    

    

     

    
      	
               
      

            	
              By  /s/
      John W. Kunkle

            

    

    
      	
               
      

            	
              Name:
      John W. Kunkle

            

    

    

    
      	
               
      

            	
              By  /s/
      Rick Fischer

            

    

    
      	
               
      

            	
              Name:
      Rick Fischer

            

    

    
      	
               
      

            	
              Authorized
      Signatories

            

    

    

    
      	
               
      

            	
              The
      foregoing is hereby agreed

            

    

    
      	
               
      

            	
              to
      as of the date thereof.

            

    

    

    
      	
               
      

            	
              C.M.
      Life Insurance Company

            

    

    

    
      	
               
      

            	
              By:Babson
      Capital Management LLC as Investment
Sub-Adviser

            

    

     

    By  /s/  Thomas
P. Shea

    Name:
Thomas P. Shea

    
      	
               
      

            	
              Title:  Managing
      Director

            

    

    

    

    
      	
               
      

            	
              Massachusetts
      Mutual Life Insurance Company

            

    

    

    
      	
               
      

            	
              By:Babson
      Capital Management LLC as Investment
Adviser

            

    

     

    By  /s/
Thomas P. Shea

    Name:
Thomas P. Shea

    
      	
               
      

            	
              Title:  Managing
      Director

            

    

    

    

    
      	
               
      

            	
              The
      foregoing is hereby agreed

            

    

    
      	
               
      

            	
              to
      as of the date thereof.

            

    

    

    
      	
               
      

            	
              Federated
      Mutual Insurance Company

            

    

    

    

    

    
      	
               
      

            	
              By
      /s/ Mark A. Hood

            

    

    
      	
               
      

            	
              Name:
      Mark A. Hood

            

    

    
      	
               
      

            	
              Title:  Vice
      President

            

    

    

    

    

    
      	
               
      

            	
              The
      foregoing is hereby agreed

            

    

    
      	
               
      

            	
              to
      as of the date thereof.

            

    

    

    

    

    
      	
               
      

            	
              John
      Hancock Life Insurance Company

            

    

    

    

    

    
      	
               
      

            	
              By  /s/
      Gavin R. Danaher

            

    

    
      	
               
      

            	
               Name:
      Gavin R. Danaher

            

    

    
      	
               
      

            	
               Title:
      Director

            

    

    

    

    
      	
               
      

            	
              John
      Hancock Life Insurance Company
(U.S.A.)

            

    

    

    

    

    
      	
               
      

            	
              By   /s/
      Gavin R. Danaher

            

    

    
      	
               
      

            	
               Name:
      Gavin R. Danaher

            

    

    
      	
               
      

            	
               Title:
      Director

            

    

    

    
      	
               
      

            	 

    

    

    

    

    
      	
               
      

            	
              The
      foregoing is hereby agreed

            

    

    
      	
               
      

            	
              to
      as of the date thereof.

            

    

    

    

    
      	
               
      

            	
              National
      Guardian Life Insurance Company

            

    

    

    

    

    

    
      	
               
      

            	
              By/s/
      R.A. Mucci

            

    

    
      	
               
      

            	
               Name:  R.A.
      Mucci

            

    

    
      	
               
      

            	
               Title:  Senior
      Vice President &
Treasurer

            

    

    

    
      	
               
      

            	
              The
      foregoing is hereby agreed

            

    

    
      	
               
      

            	
              to
      as of the date thereof.

            

    

    

    

    
      	
               
      

            	
              The
      Prudential Insurance Company of
America

            

    

    

    

    

    
      	
               
      

            	
              By:  /s/Ric
      E. Abel

            

    

    
      	
               
      

            	
              Name:
      Ric E. Abel

            

    

    
      	
               
      

            	
              Title:
      Vice President

            

    

    
      	
               
      

            	
              The
      foregoing is hereby agreed

            

    

    
      	
               
      

            	
              to
      as of the date thereof.

            

    

    

    

    American
United Life Insurance Company

    

    

    By  /s/
Kent R. Adams

    Name:  Kent
R. Adams

    Title:  VP
Fixed Income Securities

    

    

    
      	
               
      

            	
              The
      State Life Insurance Company

            

    

    

    By:  American
United Life Insurance Company, Its Agent

    

    By  /s/
Kent R. Adams

    Name:  Kent
R. Adams

    Title:  VP
Fixed Income Securities

    

    

     

    Information
Relating to Purchasers

    

    
      	
               

              Name
      and Address of Purchaser

            	
              Principal
      Amount of

              Bonds
      to Be Purchased

            
	
              Allstate
      Life Insurance Company of New York

              c/o
      Allstate Investments LLC

              Attention:  Private
      Placements Department

              3075
      Sanders Road, STE G3A

              Northbrook,
      IL  60062-7127

              Telephone:  (847)
      402-7117

              Telecopy:  (847)
      402-3092

            	
               

              $8,000,000

            

    

     

    Payments

     

    All
payments by Fedwire transfer of immediately available funds or ACH payments,
identifying the name of the Issuer, the Private Placement Number and the payment
as principal, interest or premium in the format as follows:

    

    Bank:Citibank

    ABA#:021000089

    Account
Name:  Allstate Life Insurance Company of New York Collection
Account 

    Account
#:  30547066

    Reference:  OBI
PPN 155771 M#2, Central Vermont Public Service Corporation, First
Mortgage 6.83% Bonds, Series UU due 2028 (MM/DD/YY) and the type and amount
of payment being made.

    For
Example:

    P ______ (Enter “P” and the amount of
principal being remitted,

    for example, P5000000.00)
—

    I ______ (Enter “I” and the amount of
interest being remitted,

    for example, I225000.00)

    For Overseas Wires: SWIFT
Code: CITIUS33, SWIFT Line 71A: OUR

     

    Notices

     

    All
notices of scheduled payments and written confirmations of such wire transfer to
be sent to:

     

    

    Allstate
Investments LLC

    Investment
Operations—Private Placements

    3075
Sanders Road, STE G4A

    Northbrook,
Illinois  60062-7127

    Telephone:  (847)
402-6672 Private Placements

    Telecopy:  (847)
326-7032

    Email:  PrivateIOD@allstate.com

     

    All
financial reports, compliance certificates and all other written communications,
including notice of prepayments to be sent by email
(PrivateCompliance@allstate.com) or hard copy addressed as first provided
above.

     

    Name of
Nominee in which Bonds are to be issued:  None

    

    Taxpayer
I.D. Number:  36-2608394

    

     

    Securities
should be delivered to:

     

    Citibank,
N.A.

    333
West 34th
Street

    3rd Floor
Securities Vault

    New
York, NY  10001

    Attn:  Danny
Reyes

    For
Allstate Life Insurance Company of New York/Safekeeping Account
No. 846684

     

    With
a copy by fax to Allstate Life Insurance Company

     

    Attn:  Mark
B. Fjelde, Esq.

    Fax
No.:  (847) 402-6085

    

    

    
      	
               

              Name
      and Address of Purchaser

            	
              Principal
      Amount of

              Bonds
      to Be Purchased

            
	
              C.M.
      Life Insurance Company

              c/o
      Babson Capital Management LLC

              1500
      Main Street, Suite 2200

              P.O.
      Box 15189

              Springfield,
      MA  01115-5189

              Attention:  Securities
      Investment Division

               

            	
               

              $350,000

            

    

     

    Payments

     

    All
payments on account of the Bonds shall be made by crediting in the form of bank
wire transfer of Federal or other immediately available funds (identifying each
payment as “Central Vermont Public Service Corporation, First Mortgage 6.83%
Bonds due May 2028, PPN 155771 M#2, principal, premium or
interest”) to:

    

    Citibank,
N.A.

    New York,
New York

    ABA No.
021000089

    For CM
Life Segment 43 - Universal Life

    Account
No. 30510546

    Re:  Description
of security, cusip, principal and interest split

     

    With
telephone advice of payment to the Securities Custody and Collection Department
of Babson Capital Management LLC at (413) 226-1819 or (413)
226-1803.

     

    Notices

     

    All
notices and communications to be addressed as first provided above, except
notices with respect to payments to be addressed:  Suite 200,
Attention:  Securities Custody and Collection Department.

     

    Name of
Nominee in which Bonds are to be issued:  None

     

    Taxpayer
I.D. Number:  06-1041383

     

    Securities
should be delivered to:

     

    Babson
Capital Management LLC

    1500
Main Street, Suite 2800

    Springfield,
MA  01115

    Attn:  Christopher
E. Lawrence, Esq.

    

    
      	
               

              Name
      and Address of Purchaser

            	
              Principal
      Amount of

              Bonds
      to Be Purchased

            
	
              Federated
      Mutual Insurance Company

              121
      East Park Square

              Owatonna,
      MN  55060

              Attention:  Mark
      Hood

            	
               

              $4,000,000

            

    

     

    Payments

     

    (1)All
payments by wire transfer of immediately available funds to:

    

    Wells
Fargo Bank, N.A.

    ABA #
121000248

    BNF A/C
#0000840245

    BNF A/C
Name: Trust Wire Clearing

    OBI: FFC
to A/C #12364600

    Federated Mutual Insurance
Company

    

    with sufficient information to identify
the source and application of such funds.

     

    Notices

     

    
      	
               
      

            	
              (2)All
      notices of payments and written communications of such wire transfers and
      all other communications to be addressed as first provided
      above.

            

    

     

    Name of
Nominee in which Bonds are to be issued:  None

     

    Taxpayer
I.D. Number:  41-0417460

     

    Securities
should be delivered to:

     

    Federated
Life Insurance Company

    121
East Park Square

    Owatonna,
MN  55060

    Attn:  Mark
Hood

    Phone:  (507)
455-8460

     

    

    

    
      	
               

              Name
      and Address of Purchaser

            	
              Principal
      Amount of

              Bonds
      to Be Purchased

            
	
              John
      Hancock Life Insurance Company

              c/o
      John Hancock Financial Services

              197
      Clarendon Street

              Boston,
      MA  02116

              Attention:
      Bond and Corporate Finance, C-2

              Fax
      Number:  (617) 572-5068

            	
               

              $12,000,000

            

    

     

    Payments:

     

    All
payments to be by bank wire transfer of immediately available funds
to:

    

    Bank
Name:Bank of America

    ABA
Number:026009593

    Account
Name:John Hancock Collection Account

    Account
Number:000054155417

    On Order
of:  Central Vermont
Public Service Corporation/ PPN 155771 M#2

    Central
Vermont Public Service Corporation, First Mortgage 6.83% Bonds,

    Series UU,
due May 2028

     

    Notices:

     

    All
notices with respect to payments, prepayments (scheduled and unscheduled,
whether partial or in full) and maturity shall be sent to:

    

    
      	
              John
      Hancock Financial Servicesand

              200
      Berkley Street

              Boston,
      MA  02116

              Attn:  Investment
      Accounting, B-3

              Fax:  (617)
      572-0628

              Fax:  (

            	
              John
      Hancock Financial Services

              197
      Clarendon Street

              Boston,
      MA  02116

              Attn:  Investment
      Administration, C-2

              Fax:  (617)
      572-5495

            

    

    All
notices and communication with respect to compliance reporting, financial
statements and related certifications to be addressed as first provided
above:

    

    All other
notices shall be sent to:

    

    
      	
              John
      Hancock Financial Servicesand

              197
      Clarendon Street

              Boston,
      MA  02116

              Attn:  Investment
      Law, C-3

              Fax
      Number:  (617) 572-9269

              Fax:  (

            	
              John
      Hancock Financial Services

              197
      Clarendon Street

              Boston,
      MA  02116

              Attn:  Bond
      and Corporate Finance, C-2

              Fax:  (617)
      572-5068

            

    

    

    Name in
which Bonds are to be issued:  John Hancock Life Insurance
Company

     

    Taxpayer
I.D. Number:  04-1414660

     

    Securities
should be delivered to:

     

    John
Hancock Financial Services

    197
Clarendon Street, C-3

    Boston,
MA  02116

    Attention:  Maura
H. Swan, Esq.

     

    

    

    
      	
               

              Name
      and Address of Purchaser

            	
              Principal
      Amount of

              Bonds
      to Be Purchased

            
	
              John
      Hancock Life Insurance Company (U.S.A.)

              c/o
      John Hancock Financial Services

              197
      Clarendon Street

              Boston,
      MA  02116

              Attention:
      Bond and Corporate Finance, C-2

              Fax
      Number:  (617) 572-5068

            	
               

              $10,000,000

            

    

     

    Payments:

     

    All
payments to be by bank wire transfer of immediately available funds
to:

    

    Bank
Name:Citibank, N.A.

    ABA
Number:021000089

    Account
Name:Citibank Concentration Account 36858201

    For
Credit to Account: 851388 (K514)

    On Order
of:  Central Vermont
Public Service Corporation/ PPN 155771 M#2

    Central
Vermont Public Service Corporation, First Mortgage 6.83% Bonds,

    Series UU
due May 2028

    Notices:

    All
notices with respect to payments, prepayments (scheduled and unscheduled,
whether partial or in full) and maturity shall be sent to:

    

    
      	
              Manulife
      Financialand

              200
      Bloor Street East

              North
      Tower 5

              Toronto
      Ontario M4W 1E5

              Fax:  (416)
      926-5989

              Fax:  (

            	
              John
      Hancock Financial Services

              197
      Clarendon Street

              Boston,
      MA  02116

              Attn:  Investment
      Administration, C-2

              Fax:  (617)
      572-5495

            

    

     

    All
notices and communication with respect to compliance reporting, financial
statements and related certifications to be addressed as first provided
above:

     

    All other
notices shall be sent to:

    

    
      	
              John
      Hancock Financial Servicesand

              197
      Clarendon Street

              Boston,
      MA  02116

              Attn:  Investment
      Law, C-3

              Fax
      Number:  (617) 572-9269

              Fax:  (

            	
              John
      Hancock Financial Services

              197
      Clarendon Street

              Boston,
      MA  02116

              Attn:  Bond
      and Corporate Finance, C-2

              Fax:  (617)
      572-5068

            

    

    

    Name in
which Bonds are to be issued:  John Hancock Life Insurance Company
(U.S.A.)

     

    Taxpayer
I.D. Number:  01-0233346

     

    Securities
should be delivered to:

    Manulife
Financial

    200
Bloor Street East, North Tower 5

    Toronto
Ontario M4W 1E5

    Attention:
Vito Pedota

    Phone:  (416)
852-7196

    

    

    
      	
               

              Name
      and Address of Purchaser

            	
              Principal
      Amount of

              Bonds
      to Be Purchased

            
	
              Massachusetts
      Mutual Life Insurance

                Company

              c/o
      Babson Capital Management LLC

              1500
      Main Street, Suite 2200

              P.O.
      Box 15189

              Springfield,
      Massachusetts 01115-5189

              Attention:  Securities
      Investment Division

               

            	
               

              $1,900,000

              $1,600,000

              $1,450,000

              $1,200,000

                
      $500,000

            

    

     

    Payments

     

    All
payments on account of the Bonds shall be made by crediting in the form of bank
wire transfer of Federal or other immediately available funds (identifying each
payment as “Central Vermont Public Service Corporation, First Mortgage 6.83%
Bonds due May 2028, PPN 155771 M#2, principal, premium or
interest”) to:

    

    Citibank,
N.A

    New York,
New York

    ABA
#021000089

    (Must
reference appropriate account information and account numbers for the principal
amount of the Bonds set forth below)

    Re:  Description
of security, cusip, principal and interest split

    

    
      	
              Bond
      Amount

            	
              Account
      Information

            	
              Account
      Number

               

            
	
              $1,900,000

            	
              For
      MassMutual DI

              Acct.
      Name: MassMutual BA 0038 DI Private ELBX

            	
              30566064

            
	
              $1,600,000

            	
              For
      MassMutual Unified Traditional

              Acct.
      Name: MassMutual BA 0033 TRAD Private ELBX

            	
              30566056

            
	
              $1,450,000

            	
              For
      MassMutual Pension Management

            	
              30510538

            
	
              $1,200,000

            	
              For
      MassMutual Spot Priced Contract

            	
              30510597

            
	
                 $500,000

            	
              For
      MassMutual IFM Non-Traditional

            	
              30510589

            

    

     

    With
telephone advice of payment to the Securities Custody and Collection Department
of Babson Capital Management LLC at (413) 226-1889 or (413)
226-1803.

     

    Notices

     

    All
notices and communications to be addressed as first provided above, except
notices with respect to payments to be addressed Suite 200,
Attention:  Securities Custody and Collection Department.

     

    Name of
Nominee in which Bonds are to be issued:  None

     

    Taxpayer
I.D. Number:  04-1590850

     

    Securities
should be delivered to:

     

    Babson
Capital Management LLC

    1500
Main Street, Suite 2800

    Springfield,
MA  01115

    Attn:  Christopher
E. Lawrence, Esq.

     

    

    

    

    
      	
               

              Name
      and Address of Purchaser

            	
              Principal
      Amount of

              Bonds
      to Be Purchased

            
	
              National
      Guardian Life Insurance Company

              Two
      East Gilman Street

              Madison,
      WI  53703

              Attn:  Investment
      Department

            	
               

              $2,000,000

            

    

     

    Payments

     

    All
payments on account of Bonds held by such purchaser shall be made by wire
transfer of immediately available funds to:

    

    US Bank
Madison

    PO Box
7900

    Madison
WI  53707

    ABA
No.   075000022

    For
credit to:  National Guardian Life Insurance Company

    Account
No.   312 335 010

    

    Each such
wire transfer shall set forth the name of the Company, the full title (including
the applicable coupon rate and final maturity date) of the Bonds, a reference to
PPN 155771 M#2 and the due date and application (as among
principal, premium and interest) of the payment being made.

     

    Notices

     

    All
notices and communications, including notices with respect to payments and
written confirmation of each such payment, to be addressed as first provided
above.

     

    Name of
Nominee in which Bonds are to be issued:  None

     

    Taxpayer
I.D. Number:  39-049-3780

    

    All
questions concerning this security can be directed to:

    

    Robert A.
Mucci

    Senior
Vice President  & Treasurer

    Phone:  (608)
443-5258

    E-Fax:  (608)
443-5158

    Email:  RAMUCCI@NGLIC.com

     

    

     

    Physical
Delivery Instructions:

    

    Robert A.
Mucci

    Senior
Vice President & Treasurer

    National
Guardian Life Insurance Company

    Two E.
Gilman St.

    Madison,
WI  53703

    

    

    
      	
               

              Name
      and Address of Purchaser

            	
              Principal
      Amount of

              Bonds
      to Be Purchased

            
	
              The
      Prudential Insurance Company

                of
      America

              c/o
      Prudential Capital Group

              2200
      Ross Avenue, Suite 4200E

              Dallas,
      Texas  75201

              Attention:  Managing
      Director

            	
               

              $5,000,000

              $5,000,000

            

    

     

    Payments

     

    All
payments on account of Bonds held by such purchaser shall be made by wire
transfer of immediately available funds for credit to:

     

    Account
name:  Prudential Managed Portfolio

    Account
No.:  P86188 (please do not include spaces) (in the case of payments
on account of the Bond originally issued in the principal amount of
$5,000,000)

     

    Account
name:  The Prudential – Privest Portfolio

    Account
No.:  P86189 (please do not include spaces) (in the case of payments
on account of the Bond originally issued in the principal amount of
$5,000,000)

    

    JPMorgan
Chase Bank

    New York,
New York

    ABA
No.:  021-000-021

    

    Each such
wire transfer shall set forth the name of the Company, a reference to “First
Mortgage 6.83% Bonds, Series UU due 2028, Security No. INV10022,
PPN 155771 M#2” and the due date and application (as among principal,
interest and Make-Whole Amount) of the payment being made.

     

    Notices

     

    All
notices with respect to payments, and written confirmation of each such payment,
to be addressed to:

    

    The
Prudential Insurance Company of America

    c/o
Investment Operations Group

    Gateway
Center Two, 10th
Floor

    100
Mulberry Street

    Newark,
New Jersey  07102-4077

    Attention:  Manager,
Billings and Collections

    

    Recipient
of telephonic prepayment notices:

    

    Manager,
Trade Management Group

    Telephone:  (973)
367-3141

    Facsimile:  (888)
889-3832

     

    All other
notices and communications to be addressed as first provided above.

     

    Name of
Nominee in which Bonds are to be issued:  None

     

    Taxpayer
I.D. Number:  22-1211670

     

    Physical
Delivery Instructions:

    

    Prudential
Capital Group

    2200 Ross
Avenue, Suite 4200E

    Dallas,
Texas  75201

    Attention:  William
H. Bulmer

    Telephone:  (214)
720-6204

    

     

    Changes
in Corporate Structure

     

    None

    

     

    Disclosure
Materials

     

    

     

    Other
than as disclosed in the Company’s Forms 8-K dated January 4, 2008,
January 31, 2008, February 8, 2008, February 28, 2008,
February 29, 2008, and March 11, 2008, and our Proxy Statement, dated
March 27, 2008 – none.

     

    

     

    

    Subsidiaries
of the Company and Ownership

    of
Subsidiary Stock

     

    Organization
and Ownership of Shares of Subsidiaries; Affiliates

     

    Central
Vermont Public Service Corporation

    Incorporated
Vermont: August 20, 1929

     

    Subsidiaries
and Affiliates of

     

    Central
Vermont Public Service Corporation

     

    (Stock/equity
ownership in parenthesis)

    

    
      	
              Material
      Subsidiaries:

              Regulated
      Subsidiaries (Stock ownership in parenthesis):

            	 
      
	
              C.
      V. Realty, Inc. (100%)

              Incorporated
      Vermont: August 30, 1968

            	 
      
	
              Central
      Vermont Public Service Corporation - East Barnet Hydroelectric, Inc.
      (100%)

              Incorporated
      Vermont: November 20, 1981

            	 
      
	
              Custom
      Investment Corporation  (100%)

              Incorporated
      Vermont: December 23, 2002

            	 
      
	
              Material
      Subsidiaries other than Regulated Subsidiaries:

            	 
      
	
              Catamount
      Resources Corporation  (100%) Incorporated Vermont: June 6,
      1996

            	
              Name
      changed from Catamount Investment Corporation - April 13,
    1999

            
	
              Eversant
      Corporation (100%)

              Incorporated:  January 8,
      1993

            	
              (subsidiary
      of Catamount Resources Corporation) Name changed from SmartEnergy
      Services, Inc. - October 23, 2001

            
	
              Affiliates:

              Vermont
      Electric Power Company, Inc., Vermont Transco LLC, and Vermont Electric
      Transmission Company (100% subsidiary of Vermont Electric Power
      Company)

            	 
      
	
              Vermont
      Yankee Nuclear Power Corporation

            	 
      

    

     

    

     

    Subsidiaries  and
Affiliates of Eversant Corporation

    
      	
              Subsidiaries:

            	 
      
	
              SmartEnergy
      Water Heating Services, Inc. (100%)

              Incorporated
      Vermont:  April 7, 1999

            	 
      
	 
      	 
      

    

    

    Central
Vermont Public Service Corporation

    Directors
and Senior Officers

    As of
May 15, 2008

    

    
      	
              Directors

            	 
      
	
              Mary
      Alice McKenzie, Chair

            	
              Janice
      L. Scites

            
	
              Robert
      L. Barnett

            	
              William
      J. Stenger

            
	
              Robert
      G. Clarke

            	
              Douglas
      J. Wacek

            
	
              Bruce
      M. Lisman

            	
              Robert
      H. Young

            
	
              William
      R. Sayre

            	 
      

    

    

    
      	
              Executive
      Officers

            	 
      
	
              Robert
      H. Young

            	
              President
      and Chief Executive Officer

            
	
              Joseph
      M. Kraus 

            	
              Senior
      Vice President Operations, Engineering and Customer
  Service

            
	
              Pamela
      J. Keefe

            	
              Vice
      President, Chief Financial Officer, and Treasurer

            
	
              Brian
      P. Keefe

            	
              Vice
      President, Government and Public Affairs

            
	
              Dale
      A. Rocheleau

            	
              Senior
      Vice President, General Counsel and Corporate Secretary

            
	
              William
      J. Deehan

            	
              Vice
      President, Power Planning and Regulatory Affairs

            
	
              Joan
      F. Gamble

            	
              Vice
      President, Strategic Change and Business
  Services

            

    

    

    

     

    Financial
Statements

     

    

    Form 10-K for each of the years ended
December 31, 2004-2007

    Form 10-Q for the quarterly period
ended March 31, 2008

    2007 Annual Report

    

    

    

     

    Litigation

     

    

     

    Other
than as disclosed in the Company’s Form 10-K for year ended December 31,
2007  and Form 10-Q for the period ended March 31, 2008 –
none.

    

    

    

     

    Use
of Proceeds

    

     

    Repayment
of $53,000,000 Term Loan due June 30, 2008 under the Credit Agreement dated
as of December 28, 2007 between the Company and KeyBank National
Association, and for other general corporate purposes.

     

    

    

     

    Existing
Indebtedness

     

    Existing
Indebtedness at March 31, 2008:

     

    

    Company and Regulated
Subsidiaries:

    

    
      	
              $110,500,000

            	
              First
      Mortgage Bonds (not including First Mortgage Bonds securing Letters of
      Credit which secure the Industrial Development Bonds)

            
	
              $16,250,000

            	
              Industrial
      Development Revenue Bonds

            
	
              $  6,650,000

            	
              Capital
      Leases

            
	
              $53,000,000

            	
              Term
      Note with KeyBank National Association

            
	
              $0

            	
              Short-term
      borrowings under $25 million Revolving Credit
  Facility

            

    

    

    Catamount Resources
Corporation:None

    

    Eversant Corporation:None

    

     

    Since
March 31, 2008, there has been no Material change in the amounts, interest
rates, sinking funds, installment payments or maturities of the Indebtedness of
the Company or its Material Subsidiaries, except for periodic short-term
borrowings under the $25 million Revolving Credit Facility.

     

    

    

     

    Form
of Opinion of Vermont Counsel

     

    to
the Company

     

    

     

    The
closing opinion of Kenneth C. Picton, Assistant General Counsel of the
Company, called for by Section 4.4(a) of the Bond Purchase Agreements,
shall be to the effect that:

     

    1.The
Company has been duly incorporated, is validly existing as a corporation in good
standing under the laws of the State of Vermont and has the corporate power and
authority to carry on its business and to own, lease and operate its
properties.

     

    2.The
Company is duly qualified and is in good standing as a foreign corporation
authorized to do business in each jurisdiction in which the nature of its
business or its ownership or leasing of property requires such qualification,
except where the failure to be so qualified would not have a material adverse
effect.

     

    3.The
Company has the corporate power and authority to execute and deliver and perform
its obligations under the Bond Purchase Agreements, the Forty-Sixth Supplemental
Indenture and the Bonds.

     

    4.Each of
the Bond Purchase Agreements has been duly authorized, executed and delivered by
the Company and constitutes a legal, valid and binding obligation, contract and
agreement of the Company enforceable against the Company in accordance with its
terms, except as enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws or equitable principles relating to
or limiting creditors’ rights generally.

     

    5.The
Forty-Sixth Supplemental Indenture has been duly authorized, executed and
delivered by the Company and the Indenture, as supplemented by the Forty-Fifth
Supplemental Indenture, constitutes a legal, valid and binding obligation,
contract and agreement of the Company enforceable against the Company in
accordance with its terms, except as enforcement may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws or equitable principles
relating to or limiting creditors’ rights generally.  It should be
noted that a purchaser at a foreclosure sale or otherwise would have to obtain
certain consents, approvals and qualifications in order to own and operate the
Company’s property in the various jurisdictions in which it is
located.

     

    6.The
Bonds have been duly authorized, executed and delivered by the Company and
constitute legal, valid and binding obligations of the Company enforceable
against the Company in accordance with its terms, except as enforcement may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws or
equitable principles relating to or limiting creditors’ rights
generally.  The Bonds are entitled to the security and benefits of the
Indenture and are so secured equally and ratably with all other bonds
outstanding under the Indenture (except insofar as the benefit of any sinking or
other fund established for the bonds of any particular series may be
limited to the bonds of that series).

     

    7.The
execution, delivery and performance by the Company of the Bond Purchase
Agreements, the Forty-Sixth Supplemental Indenture and the Bonds (i) have
been duly authorized by all requisite corporate action, (ii) do not require
the consent or approval of any governmental or regulatory body or agency other
than (A) the consent of the Vermont Public Service Board which has been obtained
and the appeal period for which has expired, and (B) the consent of the
Connecticut Department of Public Utility Control, the requirement for which has
been waived, and (iii) will not (A) violate (I) any provision of
law, statute, rule or regulation or its Articles of Association or By-laws,
(II) any order of any court or any rule, regulation or order of any other
agency or government binding upon it, or (III) any provision of any
material indenture, agreement or other material instrument to which it is a
party or by which its properties or assets are or may be bound,
(B) conflict with or result in a breach or constitute (alone or with due
notice or lapse of time or both) a default under any indenture, agreement or
other instrument to which the Company is a party or by which its properties or
assets are or may be bound, or (C) result in the creation or imposition of any
lien, charge or encumbrance upon any of the assets or properties of the Company
(other than the lien of the Indenture), or accelerate any other obligation of
the Company under or pursuant to any such indenture, agreement or instrument, or
require the approval of any stockholder, creditor or any other nongovernmental
person, firm or corporation.

     

    8.The
Company has good, marketable and indefeasible title to all real property and
good title to all personal property owned by it which is material to the
business of the Company, free and clear of all liens, subject only to Permitted
Encumbrances as defined in the Indenture.

     

    9.The
Forty-Sixth Supplemental Indenture to be recorded in the State of Vermont is in
form satisfactory for recording.  The recording of the Forty-Sixth
Supplemental Indenture in the office of the respective City or Town Clerk of
each of the locations in the State of Vermont listed in Schedule 1 hereto,
and the filing and recording of the financing statement in the office of the
Secretary of State of the State of Vermont, are the only recordings or filings
in the State of Vermont necessary to publish notice of and to establish of
record the rights of the parties thereto and to perfect the liens and security
interests granted by the Company in the Mortgaged Property (including fixtures)
pursuant to the Indenture.  Such financing statement complies in all
respects with applicable provisions of the Uniform Commercial Code as in effect
in the State of Vermont (the “UCC”) and is in appropriate
form for filing and the description therein of the property covered thereby is
adequate to permit the perfection of such security interest.  No
documents or instruments other than those referred to in this paragraph need be
recorded, registered or filed in any public office in the State of Vermont in
order to publish notice of the Indenture or to perfect such liens and security
interests or for the validity or enforceability of the Indenture or to permit
the Trustee to enforce its rights thereunder in the courts of the State, except
as provided in paragraph 5 above.  The provisions of the Indenture are
sufficient to create in favor of the Trustee a valid security interest in all
right, title and interest of the Company in those items and types of Mortgaged
Property described in the Indenture in which a security interest may be created
under Article 9 of the UCC.  The Indenture constitutes a first
lien (subject only to Permitted Encumbrances) upon and security interest in all
right, title and interest of the Company in those items and types of Mortgaged
Property described in the Indenture in which a security interest may be
perfected under the UCC by the filing of such financing statements under the
UCC.

     

    10.The
Forty-Sixth Supplemental Indenture has been duly recorded in Rutland, Vermont,
and has been forwarded via United States certified mail or delivered for
recording to all such other locations in Vermont (and financing statements in
respect thereof have been filed) in which any property intended to be subject to
the lien of the Indenture is located and in which such recording (and filing in
the case of financing statements) is required to protect and preserve the lien
of the Indenture and the security interest created thereby.

     

    11.Under
the laws of the State of Vermont, no mortgage, documentary, stamp or similar tax
is payable in connection with the execution, delivery or recording of the
Forty-Sixth Supplemental Indenture or the filing of the financing statement,
other than the payment of nominal recording and filing fees paid upon the
recording and filing of the Forty-Sixth Supplemental Indenture and the financing
statement.

     

    12.There
are no legal or governmental proceedings pending or, to my knowledge, threatened
to which the Company is or could be a party or to which any of its property is
or could be subject, which could reasonably be expected to result, singly or in
the aggregate, in a material adverse effect, except as disclosed in the
Company’s Form 10-K for the period ended December 31, 2007, the Company’s
Form 10-Q for the period ended March 31, 2008.

     

    13.The
Company has such authorizations of, and has made all filings with and notices
to, all governmental or regulatory authorities and self-regulatory organizations
and all courts and other tribunals, including without limitation, under any
applicable Environmental Laws, as are necessary to own, lease, license and
operate its respective properties and to conduct its business, except where the
failure to have any such authorization or to make any such filing or notice
would not, singly or in the aggregate, have a material adverse
effect.  Each such authorization is valid and in full force and effect
and the Company is in compliance with all the terms and conditions thereof and
with the rules and regulations of the authorities and governing bodies having
jurisdiction with respect thereto; and no event has occurred (including the
receipt of any notice from any authority or governing body) which allows or,
after notice or lapse of time or both, would allow, revocation, suspension or
termination of any such authorization or results or, after notice or lapse of
time or both, would result in any other impairment of the rights of the holder
of any such authorization, and such authorizations contain no restrictions that
are burdensome to the Company, except where such failure to be valid and in full
force and effect or to be in compliance, the occurrence of any
such

     

    event or
the presence of any such restriction would not, singly or in the aggregate, have
a material adverse effect.

     

    14.The
Company is exempt from all provisions of the Public Utility Holding Company Act
of 2005.

     

    15.On or
prior to May 14, 2008, the Forty-Sixth Supplemental Indenture dated as of
May 1, 2008, entered into by the Company and the Trustee was duly recorded
in Rutland, Vermont and was forwarded via United States certified mail or
delivered for recording to all such other locations in Vermont, New Hampshire,
New York, Maine and Connecticut (and financing statements in respect thereof
were filed) in which any property intended to be subject to the lien of the
Indenture is located and in which such recording (and filing in the case of the
financing statements) is required to protect and preserve the lien of the
Indenture and the security interest created thereby.

     

    Such
opinion shall also cover such other matters incident to the transactions
contemplated by the Bond Purchase Agreements and the Forty-Sixth Supplemental
Indenture as the Holders or their special counsel may reasonably
request.

    

     

    Form
of Opinion of New Hampshire Counsel

     

    to
the Company

     

    

     

    The
closing opinion of New Hampshire counsel to the Company, called for by Section
4.4(b) of the Bond Purchase Agreements, shall be to the effect
that:

     

    1.The
Company is duly qualified to transact business in the State of New Hampshire
(the “State”) and is in
good standing as a foreign corporation under the laws of the State.

     

    2.Except
for filings which are necessary to perfect the security interests granted under
the Forty-Sixth Supplemental Indenture, no authorizations or approvals of, and
no filings with, any governmental or regulatory authority or agency of the State
are necessary for the execution, delivery or performance of the Forty-Sixth
Supplemental Indenture by the Company.

     

    3.The
execution and delivery by the Company of the Forty-Sixth Supplemental Indenture
and the consummation of the transactions contemplated thereby do not conflict
with or violate any State law, rule, regulation or ordinance applicable to
Company.

     

    4.The
Forty-Sixth Supplemental Indenture is in proper form for recording and has been
recorded in the offices of the Registries of Deeds for the Counties of Cheshire,
Grafton and Sullivan in the State, and the financing statement has been filed
for record in the office of the Secretary of State of the State (the “Secretary of
State”).  Such filings and recordings are the only recordings
or filings necessary to publish notice of and to establish or record the rights
of the parties thereto and to perfect the liens and security interests granted
by the Company in the Mortgaged Property (including fixtures) pursuant to the
Indenture, subject to other property interests, liens and security interests
having priority with respect thereto.   The financing statement
complies in all respects with applicable provisions of the Uniform Commercial
Code as in effect in the State (the “UCC”) and is in appropriate
form for filing or recording and the description therein of the property covered
thereby is adequate to permit the perfection of such security
interests.  No documents or instruments other than those referred to
in this paragraph need be recorded, registered or filed in any public office in
the State in order to publish notice of the Indenture to perfect such liens and
security interests or for the validity or enforceability of the Indenture or the
financing statement or to permit the Trustee to enforce its rights thereunder in
the courts of the State, subject to the exceptions noted above. 

     

    5.Under
the laws of the State, except for routine recording and filing fees to be paid
to the Registries of Deeds for the Counties of Cheshire, Grafton and Sullivan in
the State and the Secretary of State of the State, no recording, filing,
privilege or other tax must be paid by the Company in connection with the
execution, delivery or recordation of the Forty-Sixth Supplemental Indenture or
the financing statement.

     

    

     

    6.The
foreclosure of the Indenture to be recorded in the State, exercise of the
Trustee’s power of sale, or exercise of any other remedy provided in the
Indenture in a commercially reasonable manner will not in any manner restrict,
affect or impair the liability of Company with respect to the indebtedness
secured thereby or the rights and remedies with respect to the foreclosure or
enforcement of any other security interests or liens securing such indebtedness,
to the extent any deficiency remains unpaid after application of the proceeds of
the foreclosure of such Indenture, exercise of such power of sale or as a result
of the exercise of any other remedy.

     

    Such
opinion shall also cover such other matters incident to the transactions
contemplated by the Bond Purchase Agreements or the Forty-Sixth Supplemental
Indenture as the Holders or their special counsel may reasonably
request.

    

     

    Form
of Opinion of Connecticut Counsel

     

    to
the Company

     

    The
closing opinion of Connecticut counsel to the Company, called for by Section
4.4(c) of the Bond Purchase Agreements, shall be to the effect
that:

     

    1.The
Company is duly qualified and is in good standing as a foreign corporation under
the laws of the State of Connecticut (the “State”) and under
Connecticut law may own an ownership interest in electric utility facilities in
Connecticut.

     

    2.The
Forty-Sixth Supplemental Indenture has been duly recorded in the office of the
Secretary of State of the State (the “Secretary”) and certificates
of mortgage relating thereto have been duly recorded in the Land Records of the
Towns of Berlin and Waterford, Connecticut, and no other recordings and filings
are necessary to perfect the lien of the Indenture as to the Mortgaged Property
(including fixtures) located in the State.  The Indenture constitutes
a valid mortgage lien upon and security interest in the Company’s personal
property located in Berlin, Connecticut and the Company’s ownership interest in
the site and facilities of Millstone Unit No. 3 in Waterford, Connecticut, all
as now owned by the Company, and all fixtures appertaining thereto (the “Connecticut
Property”).  We note that the Company’s ownership interest in
the Connecticut Property is as tenant in common with the other owners thereof
and that the interests of the Company’s co-tenants may be subject to the liens
of mortgages granted by such co-tenants, none of which encumbers the Company’s
interest therein.  We also point out that a purchaser at a foreclosure
sale of the Connecticut Property would have to qualify to own and operate such
property as an “electric company” or as a “foreign electric company” within the
meaning of such terms as defined in the General Statutes of Connecticut.

     

    3.Under
the laws of the State, no mortgage, documentary, stamp or similar tax is payable
in connection with the execution, delivery or recording of the Forty-Sixth
Supplemental Indenture other than the payment of a recording fee in connection
with the recording of the Forty- Sixth Supplemental Indenture in the office of
the Secretary and other nominal recording fees paid upon the recording of
certificates of mortgage relating to the Forty-Sixth Supplemental Indenture in
the land records of the Towns of Berlin and Waterford, Connecticut, which fees
have been paid.

     

    4.No
authorization, consent or approval of, or notice to, or filing, qualification,
registration or declaration with, the Connecticut Department of Public Utility
Control is required in connection with the execution, delivery and performance
with respect to the Company’s issuance of the Forty-Sixth Supplemental
Indenture.

     

    5.The
execution and delivery by the Company of the Forty-Sixth Supplemental Indenture
and the consummation of the transactions contemplated thereby do not conflict
with or violate any State law, rule, regulation or ordinance applicable to the
Company.

     

    Such
opinion shall also cover such other matters incident to the transactions
contemplated by the Bond Purchase Agreements and the Forty-Sixth Supplemental
Indenture as the Holders or their special counsel may reasonably
request.

     

    

    

     

    Form
of Opinion of Maine Counsel

     

    to
the Company

     

    

     

    The
closing opinion of Maine counsel to the Company, called for by Section 4.4(d) of
the Bond Purchase Agreements, shall be to the effect that:

     

    1.The
Company is duly qualified to do business in the State of Maine (the “State”) and is in good
standing as a foreign corporation under the laws of the State. 

     

    2.Except
for filings which are necessary to perfect the security interests granted under
the Indenture, as previously amended and supplemented and as further
supplemented by the Forty-Sixth Supplemental Indenture (collectively, the “Indenture”) and such other
filings, authorizations or approvals as are specifically contemplated by the
Indenture, no authorizations or approvals of, and no filings with, any
governmental or regulatory authority or agency of the State are necessary for
the execution or delivery of the Forty-Sixth Supplemental Indenture by the
Company or the performance of its obligations
thereunder.  

     

    3.The
counterpart of the Forty-Sixth Supplemental Indenture is in proper form for
recording.  The Forty-Sixth  Supplemental Indenture has been
duly recorded in the office of the Registry of Deeds for the County of
Cumberland, Maine, and such recording is the only recording or filing necessary
in the State to perfect the liens and security interests granted by the Company
pursuant to the Indenture in the Mortgaged Property (including fixtures) in the
State covered thereby.  No documents or instruments other than those
referred to in this paragraph need be recorded, registered or filed in any
public office in the State in order to publish notice of the Indenture or to
perfect such lien and security interests or for the validity or enforceability
of the Indenture or to permit the Trustee to enforce its rights thereunder in
the courts of the State (although additional documents or instruments would, at
the time, be necessary in connection with any court proceedings or enforcement
action).

     

    4.The
execution and delivery by the Company of the Forty-Sixth Supplemental Indenture
and the consummation of the transactions contemplated thereby do not conflict
with or violate any State law, rule, regulation or ordinance applicable to
Company.

     

    5.Under
the laws of the State, except for nominal filing and recording fees, no
recording, filing, privilege or other tax must be paid by the Company in
connection with the execution, delivery, filing or recordation of the
Forty-Sixth Supplemental Indenture.

     

    6.The
proper foreclosure of the Indenture to be recorded in the State, the proper
exercise of the Trustee’s power of sale or the proper exercise of any other
remedy provided in the Indenture will not restrict, affect or impair the
liability of Company with respect to the indebtedness secured thereby or the
rights and remedies with respect to the foreclosure or enforcement of any other
security interests or liens in the State securing such indebtedness, to the
extent any deficiency remains unpaid  after application of the
proceeds of the foreclosure of such Indenture, exercise of such power of sale or
as a result of the exercise of any other remedy.  However, mortgage
foreclosure procedures under State law which allow the mortgagee to preserve the
right to seek a deficiency judgment include provisions such that the amount of
such deficiency may be reduced in the situation where a mortgagee or its
affiliate acquires property at foreclosure with a bid price which is less than
the fair market value of the property acquired.  In addition, the
Trustee is subject to the application of equitable principles, such as the
doctrine of election of remedies.

     

    Such
opinion shall also cover such other matters incident to the transactions
contemplated by the Bond Purchase Agreements and the Forty-Sixth Supplemental
Indenture as the Holders or their special counsel may reasonably
request.

    

     

    Form
of Opinion of New York Counsel

     

    to
the Company

     

    

     

    The
closing opinion of New York counsel to the Company, called for by
Section 4.4(e) of the Bond Purchase Agreements, shall be to the effect
that:

     

    1.The
Company is duly qualified to do business in the State of New York and is in good
standing as a foreign corporation under the laws of the State of New
York.

     

    2.Except
for filings which are necessary to perfect the security interests granted under
the Forty-Sixth Supplemental Indenture and such other filings, authorizations or
approvals as are specifically contemplated by the Forty-Sixth Supplemental
Indenture, no authorizations or approvals of, and no filings with, any
governmental or regulatory authority or agency of the State of New York are
necessary for the execution, delivery or performance of the Forty-Sixth
Supplemental Indenture by the Company.

     

    3.The
execution and delivery by the Company of the Forty-Sixth Supplemental Indenture
and the consummation of the transactions contemplated thereby do not conflict
with or violate any law, rule, regulation or ordinance of the State of New York
applicable to the Company.

     

    4.The
Forty-Sixth Supplemental Indenture is in form satisfactory for
recording.  The Forty-Sixth Supplemental Indenture has been duly
recorded in the offices of the County Clerks for the Counties of Rensselar and
Washington, State of New York (the “Recording Offices”), and
such recording, and the filing of the financing statement in the form annexed
hereto as Exhibit “A” in the Office of the Department of State of the State of
Vermont, are the only recordings or filings (except for submission of the
Mortgage Tax Affidavit to the Recording Offices pertaining to the Mortgage Tax
imposed by Article 11 of the New York State Tax Law) necessary to publish
notice of and to establish of record the rights of the parties thereto and to
perfect the liens and security interests granted by the Company pursuant to the
Indenture in the Mortgaged Property (including fixtures) covered thereby that is
located in the Counties of Rensselaer and Washington, State of New
York.  Such financing statement complies in all respects with
applicable provisions of the Uniform Commercial Code as in effect in the States
of New York and Vermont and is in appropriate form for filing and the
description therein of the property covered thereby is adequate to permit the
perfection of such security interests.  No documents or instruments
other than those referred to in this paragraph need be recorded, registered or
filed in any public office in the State of New York in order to publish notice
of the Indenture or to perfect such liens and security interests or for the
validity or enforceability of the Indenture or to permit the Trustee to enforce
its rights thereunder in the courts of the State of New York, except that
additional documents or instruments would be required to be filed in connection
with any court proceedings or enforcement actions.

     

    5.Notwithstanding
Section 17.03 of the Indenture, New York law is mandatorily applicable to
the provisions of the Indenture that pertain to the foreclosure of property
located in the State of New York (the “Foreclosure
Provisions”).  The Foreclosure Provisions are enforceable in
accordance with their terms, except as the enforcement thereof may be limited by
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other
similar laws, judicial decisions or principles of equity relating to or
affecting the enforcement of creditors rights or contractual obligations
generally and by an implied covenant of good faith and fair
dealing.

     

    6.Under
the laws of the State of New York, no mortgage, documentary, stamp or similar
tax is payable in connection with the execution, delivery or recording of the
Forty-Sixth Supplemental Indenture, other than the payment of (i) a recording
tax imposed by Article 11 of the New York State Tax  Law in
connection with the Forty-Sixth Supplemental Indenture, which tax is subject to
review and adjustment by the State of New York and (ii) nominal recording
and filing fees paid upon the recording and filing of the Forty-Sixth
Supplemental Indenture and Mortgage Tax Affidavit.

     

    7.Subject
to the procedural requirements set forth in Articles 13 and 14 of the New York
State Real Property Actions and Proceedings Law (“RPAPL”), and as discussed in
the exceptions to this opinion, and subject to the provisions dealing with the
obtaining of a deficiency judgment after the foreclosure of a mortgage set forth
in Articles 13 and 14 of the RPAPL, the foreclosure of the Indenture to be
recorded in the State of New York, or the exercise of any other remedy provided
in the Indenture with respect to the Company’s property subject to the lien of
the Indenture, will not in any manner restrict, affect or impair the liability
of the Company with respect to the indebtedness secured thereby (“Indebtedness”) or the rights
and remedies with respect to the foreclosure or enforcement of any other
security interests or liens securing the Indebtedness, to the extent any
deficiency remains unpaid after application of the proceeds of such foreclosure
of the Indenture, or as a result of the exercise of any other remedy with
respect to the Company’s property subject to the lien of the Indenture; provided that, pursuant to
Section 1301 of the RPAPL, while an action to recover any portion of the
Indebtedness is pending, or after final judgment for the plaintiff therein, no
other action may be commenced or maintained to recover any part of the
Indebtedness without leave of the court in which the former action was
brought.

     

    Such
opinion shall also cover such other matters incident to the transactions
contemplated by the Bond Purchase Agreements and the Forty-Sixth Supplemental
Indenture as the Holders or their special counsel may reasonably
request.

    Form
of Opinion of Special Counsel

    to
the Purchasers

     

    The
closing opinion of Chapman and Cutler LLP, special counsel to the Purchasers,
shall be dated the Closing Date and addressed to the Purchasers, shall be
satisfactory in form and substance to the Purchasers and shall be to the effect
that:

     

    1. The
Company has been duly incorporated, is validly existing as a corporation in good
standing under the laws of the State of Vermont and has the corporate power and
authority to issue and sell the Bonds.

     

    2.  The
Forty-Sixth Supplemental Indenture has been duly authorized, executed and
delivered by the Company and the Indenture constitutes a legal, valid and
binding contract and agreement of the Company enforceable against the Company in
accordance with its terms, except as enforcement may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws or equitable principles
relating to or limiting creditors’ rights generally.

     

    3.  The
Bonds have been duly authorized, executed and delivered by the Company and the
Bonds constitute legal, valid and binding obligations of the Company enforceable
against the Company in accordance with its terms, except as enforcement may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws or
equitable principles relating to or limiting creditors’ rights
generally.  The Bonds are entitled to the security and benefits of the
Indenture and are so secured equally and ratably with all other bonds
outstanding under the Indenture (except insofar as the benefit of any sinking or
other fund established for the bonds of any particular series may be
limited to the bonds of that series).

     

    4.  Each
of the Bond Purchase Agreements has been duly authorized, executed and delivered
by the Company and constitutes a legal, valid and binding obligation, contract
and agreement of the Company enforceable against the Company in accordance with
its terms, except as enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws or equitable principles relating to
or limiting creditors’ rights generally.

     

    5.  The
issuance, sale and delivery of the Bonds under the circumstances contemplated by
each of the Bond Purchase Agreements do not, under existing law, require the
registration of the Bonds under the Securities Act of 1933, as amended, or the
qualification of the Indenture under the Trust Indenture Act of 1939, as
amended.

     

    The
opinion of Chapman and Cutler LLP is limited to the laws of the State of Vermont
and the Federal laws of the United States, and in providing the foregoing
opinions, Chapman and Cutler LLP may rely on the opinion of Kenneth C. Picton,
Esq., Assistant General Counsel for the Company, as to (i) all matters set forth
herein which are governed by the laws of the State of Vermont (except for the
opinion as to matters referred to in paragraph 1 above), (ii) the due
authorization, execution and delivery of the Indenture including the
supplemental indentures thereto (other than the Forty-Sixth Supplemental
Indenture), and (iii) the enforceability of the Indenture, and, accordingly, all
applicable assumptions, qualifications and exceptions set forth in such opinion,
including any certificates or other opinions upon which such opinion relies, are
incorporated herein.  In rendering the opinion set forth in paragraph
1 above, Chapman and Cutler LLP may rely solely upon an examination of the
Articles of Association of the Company certified by the Assistant Corporate
Secretary of the Company, a Certificate of Good Standing of the Company from the
Secretary of State of Vermont and the By-Laws of the Company.

    

    

    

    

    
      [Execution
copy]

    

     

    Central
Vermont Public Service Corporation

     

    Forty-Sixth
Supplemental Indenture

     

    Dated as
of May 1, 2008

     

     

    Amending
and Supplementing the

    Central
Vermont Public Service Corporation Indenture of Mortgage

     

    Dated as
of October 1, 1929

    
      

       

      

    

     

    Recording
Information

     

    _____________________________________
Town Clerk’s Office — Received this Forty-Sixth Supplemental Indenture
for record on the _____ day of May, 2008, at ________ O’clock, _. M., and filed
the bound copy as Book ___________ in accordance with T 24 VSA,
Section 1155, and cross-indexed in the Land Records in Book _________
at Page ______.

    

    
      	
               
      

            	
              Attest:

            

    

    
      	
               
      

            	
              Town
      Clerk

            

    

    

    

     

    This
Forty-Sixth Supplemental Indenture is dated as of May 1, 2008 (hereinafter
referred to as the “Supplemental Indenture”) and
entered into by and between Central Vermont Public Service Corporation, a
corporation duly organized and existing under and by virtue of the laws of the
State of Vermont, having offices at 77 Grove Street, Rutland, Vermont 05701
(hereinafter referred to as the “Company”), and U.S. Bank
National Association, a national banking association (successor to Old Colony
Trust Company as trustee and other successor trustees), having an office at 225
Asylum St., Hartford, CT  06103, as Trustee (hereinafter generally
referred to as the “Trustee”), with reference to
the following Recitals:

     

    Recitals

     

    Whereas,
the Company has heretofore executed and delivered to Old Colony Trust Company,
as Trustee its Indenture of Mortgage dated as of October 1, 1929
(hereinafter sometimes referred to as the “Original Indenture”) and has
executed and delivered to said trustee and various successors, as the case may
be, forty-five indentures supplemental thereto (the Original Indenture, as
heretofore amended and supplemented by such forty-five indentures thereto, and
as further supplemented by this Supplemental Indenture is referred to herein as
the “Indenture” and
capitalized terms used herein not otherwise defined shall have the meaning set
forth in the Indenture); and

     

    Whereas,
pursuant to the Indenture, all the properties of the Company, whether owned at
the time of the execution thereof or thereafter acquired, with certain
exceptions and reservations therein fully set forth, were granted, assigned,
transferred, mortgaged and pledged to the Trustee, in trust upon the terms and
conditions set forth therein, to secure bonds of the Company issued and to be
issued in accordance with the terms of the Indenture and for other purposes more
particularly set forth therein; and

     

    Whereas,
Section 2.06 of the Indenture provides that the Company may issue a series
of additional Bonds and shall execute and deliver a supplemental indenture for
such series and thereafter Bonds of such series may be issued from time to time
subject to the conditions and provisions of the Indenture; and

     

    Whereas,
the Company proposes to issue under the Indenture $60,000,000 in aggregate
principal amount of First Mortgage 6.83% Bonds, Series UU, due May 15,
2028 (herein referred to as the “Bonds”), which series
(subject to the restrictions and provisions contained in the Indenture) is
limited to such aggregate principal amount ; and

     

    Whereas,
this Supplemental Indenture has been duly and legally authorized by the Board of
Directors of the Company in a Board Resolution, and the use of terms and
provisions contained herein is in accordance with the Indenture;
and

     

    Whereas,
the Bonds have been duly authorized by a Board Resolution (a certified copy of
which is on file with the Trustee) designating and authorizing the Bonds and the
Bonds are to be redeemable as set forth in the respective form of such Bonds;
and

     

    Whereas,
the Bonds and the Trustee’s authentication certificate thereon are to be
substantially in the forms set forth in Exhibit A hereto; and

     

    Whereas,
the Company previously amended Section 5.15 of the Indenture, as restated in the
44th Supplemental Indenture, dated as of June 15, 2004, relating to the
requirement that the Company’s independent certified public accountants provide
an annual “no default” certificate, and to substantially restore the language
from the Indenture that applied before said 44th Supplemental Indenture to
assure that the form of certificate that the Company’s independent auditors
provide will continue to comply with this requirement; and

     

    Whereas,
in accordance with said Section 9.02 of the Indenture, the holders of not less
than sixty-six and two-thirds per centum (66-2/3%) in principal amount of all
the bonds issued under the Mortgage and outstanding as of the date thereof
previously consented to the execution and delivery of this instrument pursuant
to a Consent and Agreement, dated as of June 30, 2005; and

     

    Whereas,
in accordance with said Section 8.02 of the Indenture, the Trustee has deemed
sufficient the date and execution of such Consent and Agreement and the amount
and numbers or other designations of Bonds held by the persons so executing such
Consent and Agreement; and,

     

    Whereas,
the Company has determined that all conditions and requirements necessary to
make this Supplemental Indenture, in the form and terms hereof, a valid, binding
and legal agreement in accordance with its terms and the purposes herein
expressed, have been performed and fulfilled, and the execution and delivery
hereof have been in all respects duly authorized; and

     

    Now,
therefore, in confirmation of and supplementing the Indenture and pursuant to,
in compliance with and in execution of, the powers and obligations conferred,
imposed and reserved therein and every other power, authority and obligation
appertaining thereto, in consideration of the premises, and of the acceptance
and purchase of the Bonds by the holders thereof, and of the sum of One Dollar
duly paid by the Trustee to the Company and of other good and valuable
consideration, the receipt whereof is hereby acknowledged, the Company has
given, granted, bargained, sold, transferred, assigned, pledged, mortgaged,
warranted, conveyed and confirmed and by these presents does give, grant,
bargain, sell, transfer, assign, pledge, mortgage, warrant, convey and confirm
unto the Trustee, as herein provided, and its successor or successors in the
trust hereby created, the following described property, rights, titles and
interests of the Company and grants a security interest therein as permitted by
applicable law: all and singular the plants, rights, accounts, permits,
franchises, privileges, easements and property, real, personal and mixed, now
owned by the Company or which may hereafter be acquired by it, together with the
rents, issues and profits thereof, including, without limiting the generality of
the foregoing, all real property specifically described in Schedule I to
the Indenture and in Schedule A hereto, excepting, however, and there are
hereby expressly reserved from the lien and effect of the Indenture, all
Excepted Property (as defined in the Indenture), provided, however, that if an
Event of Default as defined in Section 6.01 of the Indenture shall happen
and be continuing and if thereafter the Trustee or a receiver or trustee shall
enter upon and take possession of the Mortgaged Property, as defined in the
Indenture, such Trustee or receiver or trustee may, to the extent not prohibited
by law, take possession of any and all of the Excepted Property then on hand and
use and administer and consume the same to continue the operations of the
Mortgaged Property in all respects as if such Excepted Property were part of the
Mortgaged Property, accounting therefor, if required by law, to such persons, if
any, as may be lawfully entitled to such an accounting.

     

    Subject,
however, to Permitted Encumbrances (as defined in Section 1.02 of the
Indenture).

     

    To have
and to hold, all said property hereby conveyed, assigned, pledged or mortgaged,
or intended to be conveyed, assigned, pledged or mortgaged, together with the
rents, issues and profits thereof, as well as all such after-acquired property,
unto the Trustee, its successor or successors in trust and its assigns
forever.

     

    But in
trust, nevertheless, for the equal and proportionate benefit and security of the
holders of all Bonds now or hereafter issued hereunder, pursuant to the
provisions hereof, and for the enforcement of the payment of said Bonds when
payable and the performance of and compliance with the covenants and conditions
of the Indenture, without any preference, distinction or priority as to lien or
otherwise of any Bond or Bonds over others by reason of the difference in time
of the actual issue, sale or negotiation thereof or for any other reason
whatsoever, except as herein otherwise expressly provided; but so that each and
every Bond now or hereafter issued hereunder shall have the same lien, and so
that the interest and principal of every such Bond shall, subject to the terms
hereof, be equally and proportionately secured hereby, as if it had been made,
executed, delivered, sold and negotiated simultaneously with the execution and
delivery hereof.

     

    And it is
Hereby Covenanted, Declared and Agreed, upon the trusts and for the purposes
aforesaid, as set forth in the following covenants, agreements, conditions and
provisions:

     

    Article
One

     

    Terms
of the Bonds

     

    Section 1.All Bonds
shall be dated the date of issue, except as otherwise provided in
Section 2.08 of Article Two of the Indenture.  The Bonds shall be
in denominations which are multiples of $1,000.  The Bonds shall bear
interest (computed on the basis of a 360-day year of twelve 30-day months) at
the rate of 6.83 percent (6.83%) per annum payable semi-annually at the
corporate trust office of the Trustee in the City of Hartford, Connecticut (or,
if there be a successor to said Trustee, at its designated corporate trust
office) or directly to the registered Bondholders pursuant to Section 5.01 of
the Indenture on the fifteenth day of May and November of each year, commencing
on November 15, 2008, shall mature May 15, 2028, and shall be
redeemable as hereinafter provided, provided, however, that the
Bonds shall bear interest on any overdue principal, Make-Whole Amount (defined
below), if any, and on overdue interest (to the extent permitted by law) at a
rate of 7.83% per annum.  The Bonds and the Trustee’s certificate of
authentication shall be substantially in the form set forth in Exhibit A
hereto.

     

    Section 2.The Bonds shall be
redeemable at the option of the Company in whole, or in part, at any time, in an
amount not less than 5% of the aggregate principal amount of the Bonds then
outstanding in the case of a partial redemption, upon the notice and in the
manner provided in Article Twelve of the Indenture, at 100% of the
principal amount of the Bonds to be redeemed and interest thereon to the
redemption date plus a premium equal to the Make-Whole Amount, which shall be
determined two Business Days prior to the date of such redemption and certified
in writing to the Trustee.

     

    The term
“Make-Whole Amount”
means, with respect to any Bond, an amount equal to the excess, if any, of the
Discounted Value of the Remaining Scheduled Payments with respect to the Called
Principal of such Bond over the amount of such Called Principal, provided that
the Make-Whole Amount may in no event be less than zero.  For the
purposes of determining the Make-Whole Amount, the following terms have the
following meanings:

     

    “Called Principal” means,
with respect to any Bond, the principal of such Bond that is to be redeemed
pursuant to this Section 2 or has become or is declared to be immediately
due and payable pursuant to Section 6.01 of the Indenture.

     

    “Discounted Value” means,
with respect to the Called Principal of any Bond, the amount obtained by
discounting all Remaining Scheduled Payments with respect to such Called
Principal from their respective scheduled due dates to the Settlement Date with
respect to such Called Principal, in accordance with accepted financial practice
and at a discount factor (applied on the same periodic basis as that on which
interest on the Bonds is payable) equal to the Reinvestment Yield with respect
to such Called Principal.

     

    “Reinvestment Yield” means,
with respect to the Called Principal of any Bond, 0.50% over the yield to maturity
implied by (i) the yields reported as of 10:00 a.m. (New York City time) on
the second Business Day preceding the Settlement Date with respect to such
Called Principal, on the display  designated as “Page PX1” (or such
other display as may replace Page PX1) on Bloomberg Financial Markets for the
most recently issued actively traded on the run U.S. Treasury securities having
a maturity equal to the Remaining Average Life of such Called Principal as of
such Settlement Date, or (ii) if
such yields are not reported as of such time or the yields reported as of such
time are not ascertainable (including by way of interpolation), the Treasury
Constant Maturity Series Yields reported, for the latest day for which such
yields have been so reported as of the second Business Day preceding the
Settlement Date with respect to such Called Principal, in Federal Reserve
Statistical Release H.15 (or any comparable successor publication) for U.S.
Treasury securities having a constant maturity equal to the Remaining Average
Life of such Called Principal as of such Settlement
Date.  

     

    In the
case of each determination under clause (i) or clause (ii), as the
case may be, of the preceding paragraph, such implied yield will be determined,
if necessary, by (a) converting U.S. Treasury bill quotations to bond
equivalent yields in accordance with accepted financial practice and
(b) interpolating linearly between (1) the applicable U.S. Treasury
security with the maturity closest to and greater than such Remaining Average
Life and (2) the applicable U.S. Treasury security with the maturity
closest to and less than such Remaining Average Life.  The
Reinvestment Yield shall be rounded to the number of decimal places as appears
in the interest rate of the applicable Bond

     

    “Remaining Average Life”
means, with respect to any Called Principal, the number of years
(calculated to the nearest one-twelfth year) obtained by dividing (i) such
Called Principal into (ii) the sum of the products obtained by multiplying (a)
the principal component of each Remaining Scheduled Payment with respect to such
Called Principal by (b) the number of years (calculated to the nearest
one-twelfth year) that will elapse between the Settlement Date with respect to
such Called Principal and the scheduled due date of such Remaining Scheduled
Payment.

     

    “Remaining Scheduled
Payments” means, with respect to the Called Principal of any Bond, all
payments of such Called Principal and interest thereon that would be due after
the Settlement Date with respect to such Called Principal if no payment of such
Called Principal were made prior to its scheduled due date, provided that if such
Settlement Date is not a date on which interest payments are due to be made
under the terms of the Bonds, then the amount of the next succeeding scheduled
interest payment will be reduced by the amount of interest accrued to such
Settlement Date and required to be paid on such Settlement Date pursuant to
Section 2 of the Supplemental Indenture or Section 6.01 of the Indenture,
as the context requires.

     

    “Settlement Date” means, with
respect to the Called Principal of any Bond, the date on which such Called
Principal is to be redeemed pursuant to this Section 2 has become or is
declared to be immediately due and payable pursuant to Section 6.01 of the
Indenture, as the context requires.

     

    In the
event the Company shall exercise any right to make a redemption of the Bonds
under this Section 2, it shall give written notice thereof to the Trustee
and holders of the Bonds being called for redemption as provided in Section
12.03 of the Indenture.  In the case of a redemption under this
Section 2, at least thirty (30) days prior to the date fixed for redemption
the Company will furnish written notice to the Trustee and each holder of the
Bonds being called for redemption by telecopy or other same-day communication,
of the estimated Make-Whole Amount, if any, applicable to such redemption and
the calculations, in reasonable detail, used to determine the amount of such
Make-Whole Amount and two Business Days prior to the Settlement Date for such
redemption, the Company will furnish written notice in the foregoing manner to
the Trustee and each holder of the Bonds being called for redemption of the
Make-Whole Amount, if any, applicable to such redemption which is payable on the
Settlement Date with respect to the related Called Principal, and the
calculations used to determine such Make-Whole Amount.

     

    Section 3.Anything in the
Indenture or the Bonds to the contrary notwithstanding, any payment of
principal, or premium, if any, or interest on the Bonds that is due on a date
other than a Business Day shall be made on the next succeeding Business Day
without including the additional days elapsed in the computation of the interest
payable on such next succeeding Business Day.

     

    Section 4.Pursuant to Section
5.01 of the Indenture, so long as the original registered holders or any
subsequent registered holder of the Bonds is an Institutional Investor, all
payments of interest on the Bonds held by such holder and all payments on
account of principal or premium, if any, shall be made directly to such holder
or its nominee at such address as may from time to time be furnished by such
holder in writing without surrender or presentation of the Bonds held by such
holder to the Trustee (except in the case of payment or redemption of any of the
Bonds in whole) and with respect to each such original holder or subsequent
holder such payments shall be made in accordance with the provisions of any
written agreement between such original holder or subsequent holder and the
Company which shall have been communicated and consented to by the
Trustee.

     

    Section 5.All of the
Bonds shall be secured by the Indenture and shall be subject to all of the terms
and conditions thereof, as specifically set forth therein.  Except to
the extent hereby amended, the Indenture is in all respects hereby ratified,
confirmed and approved by the Company.

     

    Article
Two

     

    Amendment
of Mortgage

     

    Section 1.The Company
acknowledges that Section 5.15 of the Indenture has been heretofore amended
and after giving effect to such amendment, reads as follows:

     

    “Section 5.15.  Certificate
as to Compliance.  On the Restatement Date and on or before
May 30 each year thereafter, the Company will deliver to the Trustee
(1) an Officers’ Certificate stating whether or not the Company is in
default in the payment of the principal or interest on the Bonds or has
knowledge of any Default, and, if so, specifying each such Default of which the
signers have knowledge, and (2) a certificate of the firm of independent
certified public accountants that prepared the consolidated financial statements
for the Company and its Subsidiaries for the immediately preceding fiscal year
to the effect that such firm, in making the examination in connection with its
report on such consolidated financial statements, has obtained no knowledge of
any Default (or if knowledge of Default has been obtained, specifying each such
Default), by the Company during such fiscal year in the observance, performance,
or fulfillment of any of the  conditions or covenants contained in
this Indenture, compliance with which is subject to verification by accountants,
and if the Company is not in compliance with any such condition or covenant,
specifying such condition or covenant.”

    

    Section 2.The Indenture is
hereby further supplemented and amended by amending and restating the first
clause of Section 11.02 of the Indenture to read:

     

    “At any
time and from time to time while in possession of the Mortgaged Property and not
in default hereunder, the Company may without any release or consent by the
Trustee, provided that,
such property (i) is not fee-owned real estate property  or (ii) has a
fair value less than the greater of $100,000 or 1% of the aggregate principal
amount of the bonds at the time outstanding:”

    

    Section 3.The Indenture is
hereby further supplemented and amended by amending and restating the last
paragraph of Section 11.02 of the Indenture to read:

     

    “The
Trustee shall, from time to time, execute any written instrument to confirm to
any transferee the propriety of any action taken by the Company under this
Section 11.02, upon receipt by the Trustee of (i) an Officers’
Certificate requesting the same and expressing any required opinions, and
including a schedule describing the property disposed of and value thereof in
reasonable detail and stating that no Default or Event of Default has occurred
and is continuing and such action was duly taken in conformity with a designated
Subsection of this Section 11.02, and (ii) except for the disposition
of property described in Subsection (a), an Opinion of Counsel stating that
such action was duly taken by the Company in conformity with such Subsection and
that the execution of such written instrument is appropriate to confirm the
propriety of such action under this Section 11.02.”

     

    Article
Three

    Miscellaneous
Provisions

     

    Section 1.The Trustee
shall be entitled to, may exercise and shall be protected by, where and to the
full extent that the same are applicable, all the rights, powers, privileges,
immunities and exemptions provided in the Indenture as if the provisions
concerning the same were incorporated herein at length.  The Trustee
under the Indenture shall ex
officio be Trustee hereunder.  The recitals and statements in
this Supplemental Indenture and in the Bonds shall be taken as statements by the
Company alone, and shall not be considered as made by or as imposing any
obligation or liability upon the Trustee, nor shall the Trustee be held
responsible for the legality or validity of this Supplemental Indenture or of
the Bonds, and the Trustee makes no covenants or representations, and shall not
be responsible, as to and for the effect, authorization, execution, delivery or
recording of this Supplemental Indenture.

     

    Section 2.This
Supplemental Indenture shall become void if and when the Original Indenture as
heretofore supplemented and amended shall be void.

     

    Section 3.The Indenture
as supplemented hereby is ratified and confirmed.

     

    Section 4.This
Supplemental Indenture may be executed in any number of counterparts, each of
which shall be an original; but such counterparts shall together constitute but
one and the same instrument.

     

    In
Witness Whereof, said Central Vermont Public Service Corporation has caused this
instrument to be signed, and its corporate seal attested by its Assistant
Corporate Secretary to be hereunto affixed, by Pamela J. Keefe, its Vice
President in that behalf duly authorized, and said U.S. Bank National
Association has caused this instrument to be executed in its corporate name by
its Officer all as of the day and year first above written.

    

    
      	
               
      

            	
              Central
      Vermont Public Service Corporation

            

    

    

    
      	
               
      

            	
              By____________________________________

            

    

    
      	
               
      

            	
              Pamela
      J. Keefe

            

    

    
      	
               
      

            	
              Its
      Vice President

            

    

    Attest:

    

    

    

    ______________________________

    Mary C.
Marzec

    Assistant
Corporate Secretary

    

    

    Signed,
sealed and delivered on

    behalf of
Central Vermont Public

    Service
Corporation in the presence of:(Corporate Seal)

    

    

    

    ______________________________

    Kathleen
Watts

    

    

    

    ______________________________

    Paula
Bishop

    

    

    

    

    

    

    

    

    

    
      	
               
      

            	
              U.S.
      Bank National Association, 

            

    

    
      	
               
      

            	
                   as
      Trustee

            

    

    

    

    

    
      	
               
      

            	
              By____________________________________

            

    

    
      	
               
      

            	
              Kathy
      L. Mitchell

            

    

    
      	
               
      

            	
              Its
      Vice President

            

    

    

    Signed
and delivered on

    behalf of
U.S. Bank National

    Association
in the presence of:

    

    

    

    ______________________________

    Mark A.
Forgetta

    

    

    

    ______________________________

    Karen R.
Felt

    

    State
of Vermont)

    )SS.

    County
of Rutland)

     

    On this
7th day of May, A.D. 2008, before me, a Notary Public in and for said State,
duly commissioned and acting as such, personally came Pamela J. Keefe, Vice
President of said Central Vermont Public Service Corporation, to me personally
known and known to me to be one of the persons named in and who executed the
foregoing instrument, and who being duly sworn by me deposed and said: that she
resides in Brandon, Vermont; that she is Vice President of Central Vermont
Public Service Corporation, the Corporation described in and which executed the
foregoing instrument as party of the first part; that she knows the seal of said
Corporation; that the seal affixed to said instrument is such corporate seal;
that it was so affixed by order of the Board of Directors of said Corporation,
and that she signed her name thereto by like order, and she acknowledged and
declared that she executed the foregoing instrument and caused the seal of said
Central Vermont Public Service Corporation to be affixed thereto as its Vice
President by authority of the Board of Directors of said Corporation, and
acknowledged the same to be her free act and deed, and the free act and deed of
said Corporation.

     

    Witness
my hand and official seal the day and year aforesaid.

    

    

    

    
      	
               
      

            	
              _______________________________________

            

    

    
      	
               
      

            	
              Melissa
      Stevens, Notary Public

            

    

    

    
      	
               
      

            	
              My
      commission expires February 10,
2011

            

    

    

    

    (Notarial
Seal)

    

    

    State
of Connecticut)

    )SS.

    County
of Hartford)

    

     

    On this
7th day of May, A.D. 2008, before me, a Notary Public in and for said
Commonwealth, duly commissioned and acting as such, personally came
Kathy L. Mitchell, Vice President of U.S. Bank National Association, to me
known and known to me to be one of the persons named in and who executed the
foregoing instrument, and who being duly sworn by me deposed and said: that she
resides in West Hartford, Connecticut; that she is a Vice President of U.S. Bank
National Association, the corporation described in and which executed the
foregoing instrument; and that she signed her name thereto by authority of said
Bank, and she acknowledged the same to be her free act and deed, and the free
act and deed of said Bank.  And Kathy L. Mitchell, a Vice
President of said U.S. Bank National Association, further acknowledged that she
accepted the trust hereinbefore created for, and on behalf of, said U.S. Bank
National Association, Trustee, upon the terms therein named.

     

    Witness
my hand and official seal the day and year aforesaid.

    

    

    

    
      	
               
      

            	
              _______________________________________

            

    

    
      	
               
      

            	
              Susan P.
      McNally, Notary Public

            

    

    

    
      	
               
      

            	
              My
      commission expires March 31,
2010

            

    

    

    (Notarial
Seal)

    

    

     

    

     

    (Form of
Series UU Bonds)

     

    Central
Vermont Public Service Corporation

     

    First
Mortgage 6.83% Bond, Series UU, due May 15, 2028

    

    No.
RUU-_______$____________

    PPN 155771
M#2May __, 2008

     

    Central
Vermont Public Service Corporation, a Vermont corporation (hereinafter called
the “Company”), for
value received, hereby promises to pay to _________________ or registered
assigns, the sum of _________________ Dollars on the 15th day of May, 2028, and
to pay to the registered holder interest (computed on the basis of a 360-day
year of twelve 30-day months) on said sum from the date hereof until the same
shall be paid, at the rate of 6.83% per annum, payable semi-annually on the 15th
day of May and November in each year, commencing on November 15, 2008 until
the payment of the said principal of this Bond becomes due and
payable.  This Bond shall bear interest on any overdue principal,
premium, if any, and on any overdue interest to the extent permitted by law, at
a rate of 7.83%.  The principal of, premium, if any, and the interest
on this Bond shall be payable at the corporate trust office of U.S. Bank
National Association in the City of Hartford, Connecticut, or its successor in
trust under the Indenture hereinafter referred to, at its designated corporate
trust office, in coin or currency of the United States of America which, at the
time of payment is legal tender for the payment of public and private debts;
provided, that the
principal, premium and interest on this Bond may be paid by written agreement
between the Company and with the Bondholder by check mailed or wire transfer to
the Bondholder, as specified in such agreement.

     

    This Bond
is one of a series of Bonds designated “First Mortgage 6.83% Bonds,
Series UU (the “Series UU
Bonds”).  The Bonds are part of an issue of bonds of the
Company authorized, without limit as to aggregate amount issued or outstanding
except as provided in the Indenture hereinafter mentioned, issued and to be
issued under and pursuant to and all equally and ratably secured by an Indenture
dated as of October 1, 1929 (said Indenture, as amended and supplemented by
certain supplemental indentures later executed including the Forty-Sixth
Supplemental Indenture dated as of May 15, 2008 (the “Supplemental Indenture”)
pursuant to which the Bonds are being issued, being herein referred to as the
“Indenture”) duly
executed and delivered by the Company to U.S. Bank National Association (as
successor to Old Colony Trust Company as trustee and other successor trustees)
(the “Trustee”), to
which Indenture reference is hereby made for a description of the property
mortgaged and pledged, the nature and extent of the security and the rights of
the holders of the Bonds and of the Trustee in respect of such
security.  By the terms of the Indenture, the Bonds to be secured
thereby are issuable in series which may vary as to date, amount, date of
maturity, rate of interest, and in other respects as provided in the
Indenture.

     

    This Bond
shall be redeemable at the option of the Company in whole, or in part, at any
time, in an amount not less than 5% of the aggregate principal amount of the
Bonds then outstanding in the case of a partial redemption, upon the notice and
in the manner provided in Article Twelve of the Indenture, at 100% of the
principal amount of the Bonds to be redeemed and interest thereon to the
redemption date plus a premium equal to the Make-Whole Amount (defined below),
which shall be determined two Business Days prior to the date of such redemption
and certified in writing to the Trustee.

     

    The term
“Make-Whole Amount” means, with respect to any Bond, an amount equal to the
excess, if any, of the Discounted Value of the Remaining Scheduled Payments with
respect to the Called Principal of such Bond over the amount of such Called
Principal, provided that the Make-Whole Amount may in no event be less than
zero.  For the purposes of determining the Make-Whole Amount, the
following terms have the following meanings:

     

    “Called Principal” means,
with respect to any Bond, the principal of such Bond that is to be redeemed
pursuant to Section 2 of the Supplemental Indenture or has become or is
declared to be immediately due and payable pursuant to Section 6.01 of the
Indenture.

     

    “Discounted Value” means,
with respect to the Called Principal of any Bond, the amount obtained by
discounting all Remaining Scheduled Payments with respect to such Called
Principal from their respective scheduled due dates to the Settlement Date with
respect to such Called Principal, in accordance with accepted financial practice
and at a discount factor (applied on the same periodic basis as that on which
interest on the Bonds is payable) equal to the Reinvestment Yield with respect
to such Called Principal.

     

    “Reinvestment Yield” means,
with respect to the Called Principal of any Bond, 0.50% over the yield to maturity
implied by (i) the yields reported as of 10:00 a.m. (New York City time) on
the second Business Day preceding the Settlement Date with respect to such
Called Principal, on the display designated as “Page PX1” (or such other display
as may replace Page PX1) on Bloomberg Financial Markets for the most recently
issued actively traded on the run U.S. Treasury securities having a maturity
equal to the Remaining Average Life of such Called Principal as of such
Settlement Date, or (ii) if
such yields are not reported as of such time or the yields reported as of such
time are not ascertainable (including by way of interpolation), the Treasury
Constant Maturity Series Yields reported, for the latest day for which such
yields have been so reported as of the second Business Day preceding the
Settlement Date with respect to such Called Principal, in Federal Reserve
Statistical Release H.15 (or any comparable successor publication) for U.S.
Treasury securities having a constant maturity equal to the Remaining Average
Life of such Called Principal as of such Settlement
Date.  

     

    In the
case of each determination under clause (i) or clause (ii), as the
case may be, of the preceding paragraph, such implied yield will be determined,
if necessary, by (a) converting U.S. Treasury bill quotations to bond
equivalent yields in accordance with accepted financial practice and
(b) interpolating linearly between (1) the applicable U.S. Treasury
security with the maturity closest to and greater than such Remaining Average
Life and (2) the applicable U.S. Treasury security with the maturity
closest to and less than such Remaining Average Life.  The
Reinvestment Yield shall be rounded to the number of decimal places as appears
in the interest rate of the applicable Bond.

     

    “Remaining Average Life”
means, with respect to any Called Principal, the number of years
(calculated to the nearest one-twelfth year) obtained by dividing (i) such
Called Principal into (ii) the sum of the products obtained by multiplying (a)
the principal component of each Remaining Scheduled Payment with respect to such
Called Principal by (b) the number of years (calculated to the nearest
one-twelfth year) that will elapse between the Settlement Date with respect to
such Called Principal and the scheduled due date of such Remaining Scheduled
Payment.

     

    “Remaining Scheduled
Payments” means, with respect to the Called Principal of any Bond, all
payments of such Called Principal and interest thereon that would be due after
the Settlement Date with respect to such Called Principal if no payment of such
Called Principal were made prior to its scheduled due date, provided that if such
Settlement Date is not a date on which interest payments are due to be made
under the terms of the Bonds, then the amount of the next succeeding scheduled
interest payment will be reduced by the amount of interest accrued to such
Settlement Date and required to be paid on such Settlement Date pursuant to
Section 2 of the Supplemental Indenture or Section 6.01 of the Indenture,
as the context requires.

     

    “Settlement Date” means, with
respect to the Called Principal of any Bond, the date on which such Called
Principal is to be redeemed pursuant to Section 2 of the Supplemental
Indenture has became or is declared to be immediately due and payable pursuant
to Section 6.01 of the Indenture, as the context requires.

     

    In case
an Event of Default, as defined in the Indenture, shall occur, the principal of
this Bond may become or be declared due and payable prior to maturity as
provided in the Indenture.  No recourse shall be had for the payment
of the principal, premium, if any, or interest of this Bond, or for any claim
based hereon, or otherwise in respect hereof or of the Indenture, to or against
any incorporator, stockholder, officer or director, past, present or future, of
the Company, either directly or through the Company, under any constitution or
statute or rule of law, or by the enforcement of any assessment or penalty, or
otherwise, all such liability of incorporators, stockholders, directors and
officers being waived and released by the holder hereof by the acceptance of
this Bond and being likewise waived and released by the terms of the
Indenture.

     

    This Bond
is transferable by the registered holder hereof, in person or by attorney duly
authorized, at the corporate trust office of the Trustee in the City of St.
Paul, Minnesota, upon surrender and cancellation of this Bond, and upon any such
transfer a new registered Bond or Bonds of the same series and maturity date and
for the same aggregate principal amount will be issued to the transferee in
exchange herefor.  This Bond shall not be valid or become obligatory
for any purpose unless and until it shall have been authenticated by the
execution by the Trustee or its successor in trust under the Indenture of the
certificate endorsed hereon.

     

    In
Witness Whereof, Central Vermont Public Service Corporation has caused this Bond
to be executed in its name by its President or one of its Vice-Presidents, and
its corporate seal to be hereto affixed and attested by its Secretary or one of
its Assistant Secretaries, this 15th day of May, 2008.

    

    
      	
               
      

            	
              Central
      Vermont Public Service Corporation

            

    

    

    
      	
               
      

            	
              By____________________________________

            

    

    
      	
               
      

            	
              Pamela J.
      Keefe, Vice President

            

    

    

    Attest:

    

    

    
      	
               
      

            	
              ____________________________________

            

    

    
      	
               
      

            	
              Mary
      C. Marzec, Assistant Secretary

            

    

     

    

     

    

     

    (Form
of Trustee’s Certificate)

     

    Trustee’s
Certificate of Authentication

     

    This Bond
is one of the Series UU Bonds described in the within mentioned
Indenture.

    

    
      	
               
      

            	
              U.S.
      Bank National Association,

            

    

    
      	
               
      

            	
                     Trustee

            

    

    

    
      	
               
      

            	
              By____________________________________

            

    

    
      	
               
      

            	
              Authorized
      Officer

            

    

    

    

     

    Description
of Real Property

     

    All land
and premises, rights, privileges and easements conveyed or purported to have
been conveyed to the Company in and by the following described deeds and the
records thereof are hereby incorporated herein by reference:

     

    Properties
not previously described:

     

    1)Deed
from Paul and Patricia Brodeur, dated September 20, 2005, recorded in Book 187,
Pages 485-487 of the St. Albans Town Land Records in the County of Franklin and
State of Vermont.

     

    2)Deed
from Grace McKeon, dated March 24, 2006, recorded in Book 171, Pages 719-721 of
the Winhall Town Land Records in the County of Bennington and State of
Vermont.

     

    3)Deed
from Rochester Electric Light and Power Co. dated September 1, 2006, recorded in
Book 82, Pages 93-99 of the Rochester Town Land Records in the County of Windsor
and State of Vermont.

     

    Also Deed
from Rochester Electric Light and Power Co. dated September 1, 2006, recorded in
Book 69, Page 144-150 of the Stockbridge Town Land Records in the County of
Windsor and State of Vermont.

     

     Also
Deed from Rochester Electric Light and Power Co. dated September 1, 2006,
recorded in Book 54, Pages 723-729 of the Pittsfield Town Land Records in the
County of Rutland and State of Vermont.

     

    4)Deed
from Rutland County Community Land Trust Inc., dated September 14, 2007,
recorded in Book 130, Pages 574-577 of the Clarendon Town Land Records in the
County of Rutland and State of Vermont.

     

    5)Deed
from Vermont Electric Cooperative, Inc. dated December 7, 2006, recorded in Book
247, Pages 289-290 of the Wilmington Town Land Records in the County of Windham
and State of Vermont.

     

    Also Deed
from Vermont Electric Cooperative, Inc. dated December 7, 2006, recorded in Book
247, Pages 291-292 of the Wilmington Town Land Records in the County of Windham
and State of Vermont.

     

    Also Deed
from Vermont Electric Cooperative, Inc. dated December 7, 2006, recorded in Book
267, Pages 189-191 of the Dover Town Land Records in the County of Windham and
State of Vermont.

     

    Also Deed
from Vermont Electric Cooperative, Inc. dated December 7, 2006, recorded in Book
117, Pages 27-28 of the Guilford Town Land Records in the County of Windham and
State of Vermont.

     

    6)Deed
from C.V. Realty Inc. dated December 28, 2007, recorded in Book 72, Page 564 of
the Chittenden Town Land Records in the County of Rutland and State of
Vermont.

     

    Also, all
property of every kind whatsoever, including land and premises, rights,
privileges, easements, transmission lines, substations and distribution lines,
in the following towns:

     

    In New
London County, State of Connecticut:

    Waterford

     

    In
Hartford County, State of Connecticut:

    Berlin

     

    In
Cumberland County, State of Maine:

    Yarmouth

     

    In
Sullivan County, State of New Hampshire:

    
      	
              Charlestown

            	
              Cornish

            	
              Plainfield

            
	
              Claremont

            	
              Newport

            	
              Unity

            

    

     

    In
Cheshire County, State of New Hampshire:

    
      	
              Chesterfield

            	
              Hinsdale

            

    

     

    In
Grafton County, State of New Hampshire:

    
      	
              Bath

            	
              Lyman

            	
              Orford

            
	
              Haverhill

            	
              Lyme

            	
              Piermont

            

    

     

    In
Washington County, State of New York:

    
      	
              Granville

            	
              Hampton

            

    

     

    In
Rensselaer County, State of New York:

    Hoosick

    

    In
Addison County, State of Vermont:

    
      	
              Addison

            	
              Leicester

            	
              Ripton

            
	
              Bridport

            	
              Lincoln

            	
              Salisbury

            
	
              Bristol

            	
              Middlebury

            	
              Shoreham

            
	
              Cornwall

            	
              Monkton

            	
              Starksboro

            
	
              Ferrisburg

            	
              New
      Haven

            	
              Vergennes

            
	
              Goshen

            	
              Orwell

            	
              Weybridge

            
	
              Granville

            	
              Panton

            	
              Whiting

            
	
              Hancock

            	 
      	 
      

    

     

    In
Bennington County, State of Vermont:

    
      	
              Arlington

            	
              Manchester

            	
              Searsburg

            
	
              Bennington

            	
              Peru

            	
              Shaftsbury

            
	
              Dorset

            	
              Pownal

            	
              Sunderland

            
	
              Glastenbury

            	
              Rupert

            	
              Winhall

            
	
              Landgrove

            	
              Readsboro

            	
              Woodford

            
	 
      	
              Sandgate

            	 
      

    

     

    In
Caledonia County, State of Vermont:

    
      	
              Barnet

            	
              Lyndon

            	
              Walden

            
	
              Danville

            	
              Ryegate

            	
              Waterford

            
	
              Kirby

            	
              St.
      Johnsbury

            	
              Wheelock

            

    

     

    In
Chittenden County, State of Vermont:

    
      	
              Buels
      Gore

            	
              Essex

            	
              Milton

            
	
              Burlington

            	
              Huntington

            	
              Underhill

            
	
              Colchester

            	
              Jericho

            	
              Westford

            

    

     

    In Essex
County, State of Vermont:

    
      	
              Concord

            	
              Guildhall

            	
              Victory

            
	
              Granby

            	
              Lunenburg

            	 
      

    

     

    In
Franklin County, State of Vermont:

    
      	
              Bakersfield

            	
              Fletcher

            	
              Richford

            
	
              Berkshire

            	
              Franklin

            	
              Sheldon

            
	
              Enosburg

            	
              Georgia

            	
              St.
      Albans City

            
	
              Fairfax

            	
              Highgate

            	
              St.
      Albans Town

            
	
              Fairfield

            	
              Montgomery

            	
              Swanton

            

    

     

    In
Lamoille County, State of Vermont:

    
      	
              Belvidere

            	
              Eden

            	
              Johnson

            
	
              Cambridge

            	
              Hyde
      Park

            	 
      

    

     

    

     

    In Orange
County, State of Vermont:

    
      	
              Bradford

            	
              Fairlee

            	
              Thetford

            
	
              Braintree

            	
              Newbury

            	
              Tunbridge

            
	
              Brookfield

            	
              Randolph

            	
              Vershire

            
	
              Chelsea

            	
              Strafford

            	
              West
      Fairlee

            

    

     

    In
Orleans County, State of Vermont:

    
      	
              Lowell

            	
              Irasburg

            	 
      

    

     

    In
Rutland County, State of Vermont:

    
      	
              Benson

            	
              Middletown
      Springs

            	
              Sherburne

            
	
              Brandon

            	
              Mt.
      Holly

            	
              Shrewsbury

            
	
              Castleton

            	
              Mt.
      Tabor

            	
              Sudbury

            
	
              Chittenden

            	
              Pawlet

            	
              Tinmouth

            
	
              Clarendon

            	
              Pittsfield

            	
              Wallingford

            
	
              Danby

            	
              Pittsford

            	
              Wells

            
	
              Fair
      Haven

            	
              Poultney

            	
              West
      Haven

            
	
              Hubbardton

            	
              Proctor

            	
              West
      Rutland

            
	
              Ira

            	
              Rutland
      City

            	 
      
	
              Mendon

            	
              Rutland
      Town

            	 
      

    

     

    In
Washington County, State of Vermont:

    
      	
              Northfield

            	
              Roxbury

            	 
      

    

     

    In
Windham County, State of Vermont:

    
      	
              Athens

            	
              Jamaica

            	
              Wardsboro

            
	
              Brattleboro

            	
              Londonderry

            	
              Westminster

            
	
              Brookline

            	
              Marlboro

            	
              Whitingham

            
	
              Dover

            	
              Newfane

            	
              Wilmington

            
	
              Dummerston

            	
              Rockingham

            	
              Windham

            
	
              Grafton

            	
              Stratton

            	 
      
	
              Guilford

            	
              Townsend

            	 
      
	
              Halifax

            	
              Vernon

            	 
      

    

     

    In
Windsor County, State of Vermont:

    
      	
              Andover

            	
              Hartland

            	
              Sharon

            
	
              Baltimore

            	
              Ludlow

            	
              Springfield

            
	
              Barnard

            	
              Norwich

            	
              Stockbridge

            
	
              Bethel

            	
              Plymouth

            	
              Weathersfield

            
	
              Bridgewater

            	
              Pomfret

            	
              Weston

            
	
              Cavendish

            	
              Reading

            	
              West
      Windsor

            
	
              Chester

            	
              Rochester

            	
              Windsor

            
	
              Hartford

            	
              Royalton

            	
              Woodstock

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]