Document:

Unassociated Document

    

    
      
        

      

    Exhibit
      10.1

     

    
      Angelica
        Letterhead

     

    May
      23,
      2007

    

    

    James
      R.
      Henderson

    (Address)

    

    

    Dear
      Jim:

    

    Attached
      is a copy
      of our letter agreement, dated September 19, 2006, in which it was agreed that
      your retainer fees and other director compensation will be paid in the form
      of
      cash rather than shares of Angelica stock.

    

    In
      accordance with that agreement, and consistent with the process that was
      followed last year, we will pay your retainer fee for this year in a similar
      manner.  Again, as explained in the attached, if a director leaves the
      Board within less than 10 months following the Retainer Date (May 15, 2007),
      he
      forfeits a pro-rated portion of the total amount.  Accordingly, your
      retainer fee ($20,000) will be paid in three equal installments in August,
      November and March (thus completing payment of the full amount as of the end
      of
      the 10 month period).

    

    In
      addition, in lieu of the annual stock grant of 600 shares paid to each director,
      you will receive a cash payment, in an amount equivalent to the market value
      of
      the shares based on the average of the high and low trading price on the grant
      date (May 15, 2007).  These shares normally vest at the rate of
      one-third per year, over a three year period.  On that basis, each of
      three cash payments will be made to you on May 15, 2008, 2009 and 2010, in
      the
      amount of $4,861.00 (600 shares x $24.305) for a total of
      $14,583.00.

    

    If
      you have any questions, please feel free to call me.  Otherwise, we
      ask that you sign and return the enclosed copy of this letter to acknowledge
      receipt and acceptance of the above.

    

    

    Very
      truly
      yours,

    

    /s/
      Steve
      Frey

    

    

    

    RECEIVED
      AND
      ACCEPTED

    

    

    /s/
      James R.
      Henderson                                                                

    James
      R.
      Henderson

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Angelica
      Letterhead

    

    

    May
      23,
      2007

    

    

    John
      J.
      Quicke

    (Address)

    

    Dear
      John:

    

    Attached
      is a copy
      of our letter agreement, dated September 19, 2006, in which it was agreed that
      your retainer fees and other director compensation will be paid in the form
      of
      cash rather than shares of Angelica stock.

    

    In
      accordance with that agreement, and consistent with the process that was
      followed last year, we will pay your retainer fee for this year in a similar
      manner.  Again, as explained in the attached, if a director leaves the
      Board within less than 10 months following the Retainer Date (May 15, 2007),
      he
      forfeits a pro-rated portion of the total amount.  Accordingly, your
      retainer fee ($20,000) will be paid in three equal installments in August,
      November and March (thus completing payment of the full amount as of the end
      of
      the 10 month period).

    

    In
      addition, in lieu of the annual stock grant of 600 shares paid to each director,
      you will receive a cash payment, in an amount equivalent to the market value
      of
      the shares based on the average of the high and low trading price on the grant
      date (May 15, 2007).  Normally, these shares vest at the rate of
      one-third per year, over a three year period.  On that basis, each of
      three cash payments will be made to you on May 15, 2008, 2009 and 2010, in
      the
      amount of $4,861.00 (600 shares x $24.305) for a total of
      $14,583.00.

    

    If
      you have any questions, please feel free to call me.  Otherwise, we
      ask that you sign and return the enclosed copy of this letter to acknowledge
      receipt and acceptance of the above.

    

    

    Very
      truly
      yours,

    

    /s/
      Steve
      Frey

    

    

    

    

    RECEIVED
      AND
      ACCEPTED

    

    

    /s/
      John J.
      Quicke                                                                

    John
      J.
      Quickeuil_exh4-2.htm

    
      EXHIBIT
        4.2

    

    

    
      

    

     

     

    
 

     

    The
      United Illuminating Company

     

    
      	
               

            	
              $40,000,000
                6.06% Senior Notes, Series A, due September 5,
                2017

            

    

    
      	
               

            	
              $30,000,000
                6.06% Senior Notes, Series B, due December 6,
                2017

            

    

    
      	
               

            	
              $44,000,000
                6.26% Senior Notes, Series C, due September 5,
                2022

            

    

    
      	
               

            	
              $33,000,000
                6.26% Senior Notes, Series D, due December 6,
                2022

            

    

    
      	
               

            	
              $16,000,000
                6.51% Senior Notes, Series E, due September 5,
                2037

            

    

    
      	
               

            	
              $12,000,000
                6.51% Senior Notes, Series F, due December 6,
                2037

            

    

    

     

    Note
      Purchase Agreement

     

    Dated
      as
      of September 5, 2007

     

    
      

        
          
                      

            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

    

    Table
      of Contents

     

    Section                                          Heading                                                     
       Page

     

    
      	
              Section
                1.

            	
              Authorization
                of Notes

            	
              1

            
	
              Section
                2.

            	
              Sale
                and Purchase of Notes

            	
              2

            
	
              Section
                3.

            	
              Closings

            	
              2

            
	
              Section
                4.

            	
              Conditions
                of Closings

            	
              2

            
	
              Section
                4.1

            	
              Representations
                and Warranties

            	
              2

            
	
              Section
                4.2

            	
              Performance;
                No Default

            	
              2

            
	
              Section
                4.3

            	
              Complete
                Certificates

            	
              3

            
	
              Section
                4.4

            	
              Opinions
                of Counsel

            	
              3

            
	
              Section
                4.5

            	
              Purchase
                Permitted by Applicable Law, Etc.

            	
              3

            
	
              Section
                4.6

            	
              Payment
                of Special Counsel Fees

            	
              3

            
	
              Section
                4.7

            	
              Private
                Placement Number

            	
              3

            
	
              Section
                4.8

            	
              Changes
                in Corporate Structure

            	
              4

            
	
              Section
                4.9

            	
              Proceedings
                and Documents

            	
              4

            
	
              Section
                4.10

            	
              Sale
                of Notes to Purchasers

            	
              4

            
	
              Section
                4.11

            	
              Funding
                Instructions

            	
              4

            
	 	 	 
	
              Section
                5.

            	
              Representations
                and Warranties of the Company

            	
              4

            
	
              Section
                5.1

            	
              Organization;
                Power and Authority

            	
              4

            
	
              Section
                5.2

            	
              Authorization,
                Etc

            	
              4

            
	
              Section
                5.3

            	
              Disclosure

            	
              4

            
	
              Section
                5.4

            	
              Organization
                and Ownership of Shares of Subsidiaries;

              Affiliates

            	
               

              5

            
	
              Section
                5.5

            	
              Financial
                Statements

            	
              5

            
	
              Section
                5.6

            	
              Compliance
                with Laws, Other Instruments, Etc

            	
              6

            
	
              Section
                5.7

            	
              Governmental
                Authorizations, Etc

            	
              6

            
	
              Section
                5.8

            	
              Litigations;
                Observance of Agreements, Statutes and Orders

            	
              6

            
	
              Section
                5.9

            	
              Taxes

            	
              6

            
	
              Section
                5.10

            	
              Title
                of Property: Leases

            	
              7

            
	
              Section
                5.11

            	
              Licenses,
                Permits, Etc

            	
              7

            
	
              Section
                5.12

            	
              Compliance
                with ERISA

            	
              7

            
	
              Section
                5.13

            	
              Private
                Offering by the Company

            	
              8

            
	
              Section
                5.14

            	
              Use
                of Proceeds; Margin Regulations

            	
              8

            
	
              Section
                5.15

            	
              Existing
                Indebtedness

            	
              9

            
	
              Section
                5.16

            	
              Foreign
                Assets Control Regulations, Etc

            	
              9

            
	
              Section
                5.17

            	
              Status
                Under Certain Statutes

            	
              10

            
	
              Section
                5.18

            	
              Environmental
                Matters

            	
              10

            

    

    

    
      
        
             

        

        
        

      

      
        -
          i
          -

        
          

        

      

      
        
        

      

    

    

    
      	
              Section
                6.

            	
              Representations
                of the Purchaser

            	
              10

            
	
              Section
                6.1

            	
              Purchase
                of Notes

            	
              10

            
	
              Section
                6.2

            	
              Source
                of Funds

            	
              11

            
	
              Section
                6.3

            	
              Accredited
                Investor

            	
              12

            
	 	 	 
	
              Section
                7.

            	
              Information
                as to Company

            	
              12

            
	
              Section
                7.1

            	
              Financial
                and Business Information

            	
              12

            
	
              Section
                7.2

            	
              Officer’s
                Certificate

            	
              14

            
	
              Section
                7.3

            	
              Inspection

            	
              15

            
	 	 	 
	
              Section
                8.

            	
              Prepayment
                of the Notes

            	
              16

            
	
              Section
                8.1

            	
              Optional
                Prepayments with Make-Whole Amount

            	
              16

            
	
              Section
                8.2

            	
              Notice
                of Prepayment

            	
              16

            
	
              Section
                8.3

            	
              Allocation
                of Partial Payments

            	
              16

            
	
              Section
                8.4

            	
              Maturity;
                Surrender, Etc

            	
              16

            
	
              Section
                8.5

            	
              Purchase
                of Notes

            	
              17

            
	
              Section
                8.6

            	
              Make-Whole
                Amount

            	
              17

            
	 	 	 
	
              Section
                9.

            	
              Affirmative
                Covenants

            	
              18

            
	
              Section
                9.1

            	
              Compliance
                with Law

            	
              18

            
	
              Section
                9.2

            	
              Insurance

            	
              18

            
	
              Section
                9.3

            	
              Maintenance
                of Properties

            	
              18

            
	
              Section
                9.4

            	
              Payment
                of Taxes and Chains

            	
              19

            
	
              Section
                9.5

            	
              Corporate
                Existence, Etc

            	
              19

            
	 	 	 
	
              Section
                10.

            	
              Negative
                Covenants

            	
              19

            
	
              Section
                10.1

            	
              Maintenance
                of Consolidated Indebtness

            	
              19

            
	
              Section
                10.2

            	
              Subsidiary
                Indebtedness

            	
              19

            
	
              Section
                10.3

            	
              Liens

            	
              20

            
	
              Section
                10.4

            	
              Limitation
                on Sale and Leaseback Transactions

            	
              21

            
	
              Section
                10.5

            	
              Disposition
                of Assets

            	
              22

            
	
              Section
                10.6

            	
              Merger,
                Consolidation, Etc

            	
              23

            
	
              Section
                10.7

            	
              Transactions
                with Affiliates

            	
              23

            
	
              Section
                10.8

            	
              Terrorism
                Sanctions Regulations

            	
              23

            
	 	 	 
	
              Section
                11.

            	
              Events
                of Default

            	
              24

            
	 	 	 
	
              Section
                12.

            	
              Remedies
                on Default, Etc

            	
              26

            
	
              Section
                12.1

            	
              Acceleration

            	
              26

            
	
              Section
                12.2

            	
              Other
                Remedies

            	
              26

            
	
              Section
                12.3

            	
              Rescission

            	
              27

            
	
              Section
                12.4

            	
              No
                Waivers or Election of Remedies, Expenses, Etc

            	
              27

            

    

    
      
          

        
        

      

      
        -
          ii
          -

        
          

        

      

      
        
        

      

    

    

    
      	
              Section
                13.

            	
              Registration;
                Exchange; Substitution of Notes

            	
              27

            
	
              Section
                13.1

            	
              Registration
                of Notes

            	
              27

            
	
              Section
                13.2

            	
              Transfer
                and Exchange of Notes

            	
              27

            
	
              Section
                13.3

            	
              Replacement
                of Notes

            	
              28

            
	 	 	 
	
              Section
                14.

            	
              Payments
                and Notes

            	
              28

            
	
              Section
                14.1

            	
              Place
                of Payment

            	
              28

            
	
              Section
                14.2

            	
              Home
                Office Payment

            	
              28

            
	 	 	 
	
              Section
                15.

            	
              Expenses,
                Etc

            	
              29

            
	
              Section
                15.1

            	
              Transactions
                Expenses

            	
              29

            
	
              Section
                15.2

            	
              Survival

            	
              29

            
	 	 	 
	
              Section
                16.

            	
              Survival
                of Representations and Warranties; Entire

              Agreement

            	
               

              30

            
	 	 	 
	
              Section
                17.

            	
              Amendment
                and Waiver

            	
              30

            
	
              Section
                17.1

            	
              Requirements

            	
              30

            
	
              Section
                17.2

            	
              Solicitation
                of Holders of Notes

            	
              30

            
	
              Section
                17.3

            	
              Binding
                Effects, Etc

            	
              31

            
	
              Section
                17.4

            	
              Notes
                Held by Company, Etc

            	
              31

            
	 	 	 
	
              Section
                18.

            	
              Notices

            	
              31

            
	 	 	 
	
              Section
                19.

            	
              Reproduction
                of Documents

            	
              31

            
	 	 	 
	
              Section
                20.

            	
              Confidential
                Information

            	
              32

            
	 	 	 
	
              Section
                21.

            	
              Substitution
                of Purchaser

            	
              33

            
	 	 	 
	
              Section
                22.

            	
              Miscellaneous

            	
              33

            
	
              Section
                22.1

            	
              Successors
                and Assigns

            	
              33

            
	
              Section
                22.2

            	
              Construction

            	
              33

            
	
              Section
                22.3

            	
              Consent
                to Jurisdiction; Services of Process; Waiver of Jury

              Trial

            	
               

              33

            
	
              Section
                22.4

            	
              Payments
                Due on Non-Business Days

            	
              34

            
	
              Section
                22.5

            	
              Severability

            	
              34

            
	
              Section
                22.6

            	
              Accounting
                Terms

            	
              34

            
	
              Section
                22.7

            	
              Counterparts

            	
              35

            
	
              Section
                22.8

            	
              Governing
                Law

            	
              35

            

    

    
      
           

        
        

      

      
        -
          iii
          -

        
          

        

      

      
        
        

      

    

          

                              

    
      	 Exhibit
              1-A	 —  Form
              of 6.06% Senior Note, Series A, due September 5,
              2017
	 Exhibit
              1-B	 —  Form
              of 6.06% Senior Note, Series B, due December 6,
              2017
	 Exhibit 1-C	 —  Form
              of 6.26% Senior Note, Series C, due September 5,
              2022
	 Exhibit
              1-D	 —  Form
              of 6.26% Senior Note, Series D, due December 6,
              2022
	 Exhibit 1-E	 —  Form
              of 6.51% Senior Note, Series E, due September 5,
              2037
	 Exhibit
              1-F	 —
 Form
              of
              6.51% Senior Note, Series F, due December 6, 2037
	 Exhibit
              2	 —
 Form
              of
              Funds Delivery Instruction Letter
	 Exhibit
              4.4(a)	 — 
Form
              of Opinion of Counsel for the
              Company
	 Exhibit
              4.4(b)	 — 
Form
              of Opinion of Special Counsel for the
              Purchasers
	 	 
	 Schedule
              A	 —  Names
              and Addresses of Purchasers
	 Schedule
              B	 —  Defined
              Terms
	 Schedule
              5.3	 — 
Disclosure
              Documents
	 Schedule
              5.4	 — 
Subsidiaries
	 Schedule
              5.5	 — 
Financial
              Statements
	  Schedule
              5.14	 — 
Use
              of Proceeds
	 Schedule
              5.15	 — 
Existing
              Indebtedness – First
              Closing
	 Annex
              A	 — 
Existing
              Indebtedness – Second
              Closing

    

     

    
      
          

        
        

      

      
        -
          iv
          -

        
          

        

      

      
        
        

      

    

    The
      United Illuminating Company

    157
      Church Street

    PO
      Box
      1564

    New
      Haven, CT 06506-0901

    

    
      	
               

            	
              $40,000,000
                6.06% Senior Notes, Series A, due September 5,
                2017

            

    

    
      	
               

            	
              $30,000,000
                6.06% Senior Notes, Series B, due December 6,
                2017

            

    

    
      	
               

            	
              $44,000,000
                6.26% Senior Notes, Series C, due September 5,
                2022

            

    

    
      	
               

            	
              $33,000,000
                6.26% Senior Notes, Series D, due December 6,
                2022

            

    

    
      	
               

            	
              $16,000,000
                6.51% Senior Notes, Series E, due September 5,
                2037

            

    

    
      	
               

            	
              $12,000,000
                6.51% Senior Notes, Series F, due December 6,
                2037

            

    

    

    As
      of
      September 5, 2007

    

    To
      the
      Several Purchasers Listed

      in
      the Attached Schedule A:

    

    Ladies
      and Gentlemen:

     

    The
      United Illuminating Company, a Connecticut corporation (the “Company”),
      agrees with each of you (sometimes individually a “Purchaser” and
      collectively the “Purchasers”) as follows:

    
       

      Section
        1.  Authorization of Notes.

    

     

    The
      Company has duly authorized the issue and sale of (a) $40,000,000 aggregate
      principal amount of its 6.06% Senior Notes, Series A, due September 5,
      2017 (the “Series A Notes”), (b) $30,000,000 aggregate principal
      amount of its 6.06% Senior Notes, Series B, due December 6, 2017 (the
“Series B Notes”), (c) $44,000,000 aggregate principal amount of its
      6.26% Senior Notes, Series C, due September 5, 2022 (the
“Series C Notes”), (d) $33,000,000 aggregate principal amount of
      its 6.26% Senior Notes, Series D, due December 6, 2022 (the “Series D
      Notes”), (e) $16,000,000 aggregate principal amount of its 6.51% Senior
      Notes, Series E, due September 5, 2037 (the “Series E
      Notes”), and (f) $12,000,000 aggregate principal amount of its 6.51% Senor
      Notes, Series F, due December 6, 2037 (the “Series F Notes”; the
      Series A Notes, the Series B Notes, the Series C Notes, the
      Series D Notes, the Series E Notes and the Series F Notes being hereinafter
      collectively referred to as the “Notes”), to be substantially in the
      form set out in Exhibit 1-A, Exhibit 1-B, Exhibit 1-C,
      Exhibit 1-D, Exhibit 1-E and Exhibit
      1-F, as the case may be.  As used herein, the term
“Notes” shall mean all notes originally delivered pursuant to this
      Agreement and all notes delivered in substitution or exchange for any such
      note
      and, where applicable, shall include the singular number as well as the
      plural.  Certain capitalized and other terms used in this Agreement
      are defined in Schedule B; references to a “Schedule” or an “Exhibit” are,
      unless otherwise specified, to a Schedule or an Exhibit attached to this
      Agreement.

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Section
      2.  Sale and Purchase of Notes.

     

    Subject
      to the terms and conditions of this Agreement, the Company will issue and sell
      to you and you will severally purchase from the Company, at the Closing provided
      for in Section 3, Notes in the principal amount or amounts and of the series
      specified opposite your name in Schedule A at the purchase price of 100% of
      the
      principal amount thereof.  Your obligations hereunder are several and
      not joint obligations and no Purchaser shall have any liability to any Person
      for the performance or non-performance by any other Purchaser
      hereunder.

     

    
      Section
        3.  Closings.

    

     

    Delivery
      of the Notes will be made at the offices of Chapman and Cutler LLP, 111 West
      Monroe Street, Chicago, Illinois 60603, at 10:00 A.M. Chicago time, at two
      Closings (individually, a “Closing” and collectively, the
“Closings”).  The first Closing shall be held on September 5,
      2007 (with respect to $100,000,000 of the Notes), and the second Closing shall
      be held on December 6, 2007 (with respect to $75,000,000 of the
      Notes).  At each Closing, the Company will deliver to you the Notes of
      the series to be purchased by you at such Closing, as set forth opposite your
      name on Schedule A, in the form of a single Note for each series of the Notes
      to
      be purchased by you (or such greater number of Notes of each such series in
      denominations of at least $100,000 as you may request prior to the Closing),
      dated the date of such 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 to the Company’s account number 304295078
      at JPMorganChase Bank, ABA number 021000021.

     

    If
      at
      either Closing the Company shall fail to tender such Notes 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 Closings

    

     

    Your
      several obligations to purchase and pay for the Notes to be sold to you at
      each
      Closing are subject to the fulfillment to your satisfaction, prior to or at
      each
      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 such Closing.

     

    Section
      4.2.  Performance; No Default.  The Company shall
      have performed and complied in all material respects with all agreements and
      conditions contained in this Agreement required to be performed or complied
      with
      by it prior to or at such Closing and after giving effect to the issue and
      sale
      of the Notes (and the concurrent application of the proceeds thereof as
      contemplated by Section 5.14) no Default or Event of Default shall have occurred
      and be continuing.  Neither the Company nor any Subsidiary shall have
      entered into any transaction 

    
      
        
        

        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

      

    

     

    since
      the
      date of the Memorandum that would have been prohibited by Sections 10.1 to
      10.7,
      inclusive, had such Sections applied since such date.

     

    Section
      4.3.  Compliance Certificates.

     

    (a) 
      Officer’s Certificate.  The Company shall have delivered to
      you an Officer’s Certificate, dated the date of such Closing, certifying that
      the conditions specified in Sections 4.1, 4.2 and 4.8 have been
      fulfilled.

     

    (b) 
      Secretary’s Certificate.  The Company shall have delivered to
      you a certificate of the Secretary or an Assistant Secretary of the Company,
      dated the date of such Closing, certifying as to the resolutions attached
      thereto and other corporate proceedings relating to the authorization, execution
      and delivery of the Notes and this Agreement.

     

    Section
      4.4.Opinions of Counsel.  You shall have received
      opinions in form and substance satisfactory to you, dated the date of such
      Closing (a) from Wiggin and Dana LLP, independent counsel to the Company,
      substantially in the form set forth in Exhibit 4.4(a) and covering such other
      matters incident to the transactions contemplated hereby as you or your counsel
      may reasonably request (and the Company hereby instructs its counsel to deliver
      such opinion to you) and (b) from Chapman and Cutler LLP, your special
      counsel in connection with such transactions, substantially in the form set
      forth in Exhibit 4.4(b) 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 such Closing your purchase of Notes shall
      (a) 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,
      (b) not violate any applicable law or regulation (including without
      limitation Regulation T, U or X of the Board of Governors of the Federal Reserve
      System) and (c) 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.  Payment of Special Counsel Fees.  Without
      limiting the provisions of Section 15.1, the Company shall have paid on or
      before such Closing the fees, charges and disbursements of your special counsel
      referred to in Section 4.4 to the extent reflected in a statement of such
      counsel rendered to the Company at least one Business Day prior to such
      Closing.

     

    Section
      4.7.  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 series of the Notes
      prior to the date of the first Closing.

    
      
        
        

        
        

      

      
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    Section
      4.8.  Changes in Corporate Structure.  The Company
      shall not have changed its jurisdiction of incorporation or been a party to
      any
      merger or consolidation or 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, except as permitted
      pursuant to Section 10.6.

     

    Section
      4.9.  Proceedings and Documents.  All corporate and
      other proceedings in connection with the transactions contemplated by this
      Agreement 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
      4.10.  Sale of Notes to
      Purchasers.  Contemporaneously with each Closing, the Company
      shall sell to each of the Purchasers and each of the Purchasers shall purchase
      the Notes to be purchased by them at such Closing as specified in Schedule
      A.

     

    Section
      4.11.  Funding Instructions.  At least three
      Business Days prior to the date of each Closing, each Purchaser shall have
      received written instructions signed by a Responsible Officer on letterhead
      of
      the Company confirming the information specified in Section 3
      in the form of Exhibit 2.

     

    
      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 Notes and to perform the provisions hereof and
      thereof.

     

    Section
      5.2.  Authorization, Etc.  This Agreement and the
      Notes have been duly authorized by all necessary corporate action on the part
      of
      the Company, and this Agreement constitutes, and upon execution and delivery
      thereof each Note 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 (a) applicable bankruptcy, insolvency,
      reorganization, moratorium or other similar laws affecting the enforcement
      of
      creditors’ rights generally and (b) 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, through its agent,
      Citigroup Global Markets Inc., has delivered to you a copy of a Confidential
      Offering Memorandum dated July 6, 2007 

    
      
        
        

        
        

      

      
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    (together
      with the documents incorporated therein by reference, the
“Memorandum”), relating to the transactions contemplated
      hereby.  This Agreement, the Memorandum, the documents, certificates
      or other writings delivered to you by or on behalf of the Company in connection
      with the transactions contemplated hereby and described in Schedule 5.3
      (together with the Memorandum, the “Disclosure Documents”), and the
      financial statements listed in Schedule 5.5, 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.  Except as disclosed in the
      Memorandum, since December 31, 2006, there has been no change in the financial
      condition, operations, business, properties or prospects of the Company or
      any
      Subsidiary other than changes that individually or in the aggregate could not
      reasonably be expected to have a Material Adverse Effect.  There is no
      fact known to the Company that could 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, 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 Subsidiary shown in Schedule 5.4 as being owned by the Company and its
      Subsidiaries have been validly issued, are fully paid and nonassessable and
      are
      owned by the Company or another Subsidiary free and clear of any Lien (except
      as
      otherwise disclosed in Schedule 5.4).

     

    (c) 
      Each 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 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 Subsidiary is a party to, or otherwise subject to any legal restriction
      or
      any agreement (other than this Agreement, the agreements listed in Schedule
      5.4
      and customary limitations imposed by corporate law statutes) restricting the
      ability of such Subsidiary to pay dividends out of profits or make any other
      similar distributions of profits to the Company or any of its Subsidiaries
      that
      owns outstanding shares of capital stock or similar equity interests of such
      Subsidiary.

    

    Section
      5.5.  Financial Statements.  The Company has
      delivered to you copies of the consolidated financial statements of the Company
      and its Subsidiaries listed in 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 

    
      
        
        

        
        

      

      
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    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).

     

    Section
      5.6.  Compliance with Laws, Other Instruments,
      Etc.  The execution, delivery and performance by the Company of
      this Agreement and the Notes will not (a) 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 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
      Subsidiary is bound or by which the Company or any Subsidiary or any of their
      respective properties may be bound or affected, (b) 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 Subsidiary or (c) violate any provision of any statute
      or
      other rule or regulation of any Governmental Authority applicable to the Company
      or any Subsidiary.

     

    Section
      5.7.  Governmental Authorizations, Etc.  No
      consent, approval or authorization of, notice to, or registration, filing or
      declaration with, or other action by, any Governmental Authority is required
      for
      the valid execution, delivery or performance by the Company of this Agreement
      or
      the Notes, except for the Connecticut Department of Public Utility Control,
      whose final approval shall have been obtained on or before the date of the
      first
      Closing.

     

    Section
      5.8.  Litigation; Observance of Agreements, Statutes and
      Orders.  (a) There are no actions, suits or proceedings pending
      or, to the knowledge of the Company, threatened against or affecting the Company
      or any Subsidiary or any property of the Company or any 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 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 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
      (a)  the amount of which is not individually or in the aggregate Material
      or (b) 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 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, 

    
      
        
        

        
        

      

      
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    accruals
      and reserves on the books of the Company and its Subsidiaries in respect of
      United States federal, state or other taxes for all fiscal periods are
      adequate.  The United States federal income tax liabilities of the
      Company and its 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, 2001.  The United States federal income tax liabilities
      of the Company and its Subsidiaries have been included in the consolidated
      tax
      return of UIL Holdings beginning with the fiscal year ended December 31,
      2000.

     

    Section
      5.10.  Title to Property; Leases.  The Company and
      its Subsidiaries have good and sufficient title to their respective properties
      that individually or in the aggregate are Material, 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 or any Subsidiary
      after said date (except as sold or otherwise disposed of in the ordinary course
      of business and except as described in Section 10.5(b)), in each case free
      and
      clear of Liens prohibited by this Agreement.  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.  Licenses, Permits, Etc.  (a) The Company and
      its Subsidiaries own or possess all licenses, permits, franchises,
      authorizations, patents, copyrights, proprietary software, service marks,
      trademarks and trade names, or rights thereto, that individually or in the
      aggregate are Material, without known conflict with the rights of
      others.

     

    (b) 
      To the best knowledge of the Company, no product of the Company infringes in
      any
      material respect any license, permit, franchise, authorization, patent,
      copyright, proprietary software, service mark, trademark, trade name or other
      right owned by any other Person.

     

    (c) 
      To the best knowledge of the Company, there is no Material violation by any
      Person of any right of the Company or any of its Subsidiaries with respect
      to
      any patent, copyright, proprietary software, service mark, trademark, trade
      name
      or other right owned or used by the Company or any of its
      Subsidiaries.

     

    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 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 accumulated plan benefits under the Plan subject to
      Title IV of ERISA, as calculated under Financial Accounting Standards No. 35,
      determined as of the

    
      
        
        

        
        

      

      
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    end
      of
      such Plan’s most recently ended plan year, did not exceed the aggregate current
      value of the assets of such Plan disclosed in such valuation report by more
      than
      $18,500,000.  The terms “current value” and “present value” have the
      meanings 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 not expected to have a Material Adverse
      Effect.

     

    (e) 
      With respect to each employee benefit plan, if any, disclosed by you in writing
      to the Company in accordance with Section 6.2(c), neither the Company nor any
      “affiliate” of the Company (as defined in section V(c) of the QPAM Exemption)
      has at this time, nor has exercised at any time during the immediately preceding
      year, the authority to appoint or terminate the “QPAM” (as defined in Part V of
      the QPAM Exemption) disclosed by you to the Company pursuant to Section 6.2(c)
      as manager of any of the assets of any such plan or to negotiate the terms
      of
      any management agreement with such QPAM on behalf of any such plan, and the
      Company is not an “affiliate” (as so defined) of such QPAM.  The
      Company is not a party in interest with respect to any employee benefit plan
      disclosed by you in accordance with Section 6.2(b) or 6.2(e).  The
      execution and delivery of this Agreement and the issuance and sale of the Notes
      at each Closing hereunder will not involve any prohibited transaction (as such
      term is defined in section 406(a) of ERISA and section 4975(c)(1)(A)-(D) of
      the
      Code), that could subject the Company or any holder of a Note to any tax or
      penalty on prohibited transactions imposed under said section 4975 of the Code
      or by section 502(i) of ERISA.  The representation by the Company in
      the preceding 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 source
      of the funds used to pay the purchase price of the Notes 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 Notes 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 with, any Person other
      than the Purchasers and not more than 75 other Institutional Investors, each
      of
      which has been offered the Notes 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
      Notes to the registration requirements of section 5 of the Securities
      Act.

    

    Section
      5.14.  Use of Proceeds; Margin Regulations.  The
      Company will apply the net proceeds of the sale of the Notes as set forth in
      Schedule 5.14.  No part of the proceeds from the sale of the Notes
      hereunder will be used, and no part of the proceeds of such Indebtedness being
      repaid was 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 221), or for the purpose of buying or
      carrying or trading in any securities under such 

    
      
        
        

        
        

      

      
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    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 1% 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 25% 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.  Schedule 5.15 sets
      forth a complete and correct list of all outstanding Indebtedness of the Company
      and its Subsidiaries as of the date of this Agreement.  Neither the
      Company nor any 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 Subsidiary, and no event or condition exists with respect
      to
      any Indebtedness of the Company or any Subsidiary that would permit (or that
      with the giving of 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.  Annex A to be attached hereto on the date of the second
      Closing will correctly describe all outstanding Indebtedness and any Liens
      secured thereby of the Company and its Subsidiaries as of the date of the second
      Closing.  Since the date of the first Closing, no Indebtedness has
      been created, assumed, incurred or guaranteed in violation of Sections 10.1
      through 10.4.

     

    Except
      as
      disclosed in Schedule 5.15, neither the Company nor any Subsidiary has 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 that would not be permitted by
      Section 10.3.

     

    Section
      5.16.  Foreign Assets Control Regulations,
      Etc.  (a) Neither the sale of the Notes 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, or will become, 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) knowingly engages or will engage in any dealings
      or
      transactions, or knowingly is or will be otherwise associated, with any such
      Person.  The Company and its Subsidiaries are, to their knowledge, in
      compliance, in all material respects, with the USA Patriot
      Act.  Neither the Company nor any Subsidiary (i) is or will become a
      blocked person described in section 1 of Executive Order 13224 of September
      23,
      2001 Blocking Property and Prohibiting Transactions With Persons Who Commit,
      Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)) or (ii)
      knowingly engages or will engage in any dealings or transactions, or be
      otherwise associated, with any such blocked person.

     

    (c)
      No
      part of the proceeds from the sale of the Notes hereunder will be used, directly
      or indirectly, for any payments 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

    
      
        
        

        
        

      

      
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    order
      to
      obtain, retain or direct business or obtain any improper advantage, in violation
      of the Foreign Corrupt Practices Act of 1977, as amended.

     

    Section
      5.17.  Status Under Certain Statutes.  Neither the
      Company nor any Subsidiary is subject to regulation under the Investment Company
      Act of 1940, as amended, or the ICC Termination Act of 1995, as amended, nor
      is
      the Company subject to regulation under the Federal Power Act, as amended,
      with
      respect to the execution, delivery or performance of this Agreement or the
      Notes
      or the issuance of other securities.

     

    Section
      5.18.  Environmental Matters.  Neither the Company
      nor any 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 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.  Without limiting the foregoing,

     

    (a) 
      neither the Company nor any 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 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 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.

       

    

    Each
      of
      you severally represents and warrants to the Company as follows:

     

    Section
      6.1.  Purchase of Notes.

     

    You
      represent that you are purchasing the Notes 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 Notes
      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 Notes.

    
      
        
        

        
        

      

      
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    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 Notes 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 ten percent (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
      such Purchaser’s 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 have been disclosed by such Purchaser
      to
      the Company in writing pursuant to this clause (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 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, as of the last day of its most recent calendar quarter, the
      QPAM
      does not own a 10% or more interest in the Company and no Person controlling
      or
      controlled by the QPAM (applying the definition of “control” in section V(e) of
      the QPAM Exemption) owns a 20% or more interest in the Company (or less than
      20%
      but greater than 10%, if such Person exercises control over the management
      or
      policies of the Company by reason of its ownership interest)
      and

    
      
        
        

        
        

      

      
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    (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 clause (d); or

     

    (e)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 (e);
      or

     

    (f)the
      Source is a governmental plan; or

     

    (g)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

     

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

     

    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
      6.3.  Accredited Investor.  You are an “accredited
      investor” as such term is defined in Regulation D promulgated pursuant to
      the Securities Act.

     

    
      Section
        7.  Information as to Company.

    

     

    Section
      7.1.  Financial and Business Information.  The
      Company shall deliver to each
      holder of Notes 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,

    
      
        
        

        
        

      

      
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    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 105 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
      by
      an opinion thereon of independent 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, 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 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
      UIL Holdings, the Company or any Subsidiary to public securities holders
      generally or its lending banks, (ii) each regular or periodic report, each
      registration statement (without exhibits except as expressly requested by such
      holder), and each prospectus and all amendments thereto filed by UIL Holdings,
      the Company or any Subsidiary with the Securities and Exchange Commission and
      (iii) all press releases and other statements made available generally by
      UIL Holdings, 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 five days after a Responsible Officer becoming aware of the existence
      of
      any Default or 

    
      
        
        

        
        

      

      
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    Event
      of
      Default or that any Person has given any notice or taken any action with respect
      to a claimed default hereunder or that any Person has given any notice or taken
      any action with respect to a claimed default of the type referred to in
      Section 11(f), 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 five 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(b) 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;

     

    (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 of receipt thereof, copies of any notice to the Company or any
      Subsidiary from any United States 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; and

     

    (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
      and
      under the Notes as from time to time may be reasonably requested by any such
      holder of Notes.

     

    Section
      7.2.  Officer’s Certificate.  Each set
      of financial statements delivered
      to a holder of Notes pursuant to Section 7.1(a) or Section 7.1(b) shall be
      accompanied by a certificate of a Senior Financial Officer setting
      forth:

     

    
      
        
        

      

      
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    (a) 
      Covenant Compliance -- the information (including detailed
      calculations) required in order to establish whether the Company was in
      compliance with the requirements of Sections 10.1 through 10.6, inclusive,
      during the quarterly or annual 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) 
      Default -- a statement that such Senior Financial 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 Notes 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, employees 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.

    
      
        
        

        
        

      

      
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      Section
        8.  Prepayment of the Notes.

    

     

    In
      addition to the payment of the entire unpaid principal amount of the Notes
      at
      the final maturity thereof, the Company may make optional prepayments in respect
      of the Notes as hereinafter provided.

     

    Section
      8.1.  Optional Prepayments with Make-Whole
      Amount.  The Company may, at its option and upon notice as
      provided in Section 8.2, prepay at any time all, or from time to time any part
      of, the Notes of each series in proportion to the aggregate principal amount
      outstanding of each series of the Notes (in a minimum amount of $5,000,000
      and
      otherwise in multiples of $100,000) at the principal amount so prepaid, together
      with interest accrued thereon to the date of such prepayment, plus the
      Make-Whole Amount determined for the prepayment date with respect to the
      respective principal amounts.  

     

    Section
      8.2.  Notice of Prepayment.  The Company will give
      each holder of Notes written notice of each optional prepayment under Section
      8.1 not less than 30 days and not more than 60 days prior to the date fixed
      for
      such prepayment.  Each such notice shall specify the date fixed for
      such prepayment (which shall be a Business Day), the aggregate principal amount
      of each series of the Notes to be prepaid on such date, the principal amount
      of
      Notes held by such holder to be prepaid (determined in accordance with Section
      8.3) and the interest to be paid on the prepayment date with respect to such
      principal amount being prepaid.

     

    Each
      such
      notice of prepayment shall be accompanied by a certificate of a Senior Financial
      Officer as to the estimated Make-Whole Amount due in connection with such
      prepayment (calculated as if the date of such notice were the date of the
      prepayment), setting forth the details of such computation.  Two
      Business Days prior to such prepayment, the Company shall deliver to each holder
      of Notes of each series a certificate of a Senior Financial Officer specifying
      the calculation of such Make-Whole Amount as of the specified prepayment
      date.

     

    Section
      8.3.  Allocation of Partial Prepayments.  In the
      case of each partial prepayment of the Notes pursuant to Section 8.1, the
      principal amount of the Notes to be prepaid shall be (a) allocated among each
      series of Notes in proportion to the aggregate unpaid principal amount of each
      such series of Notes and (b) allocated pro rata among all of the Notes of each
      series at the time outstanding in proportion, as nearly as practicable, to
      the
      respective unpaid principal amounts thereof.

     

    Section
      8.4.  Maturity; Surrender, Etc.  In the case of
      each prepayment of Notes pursuant to this Section 8, the principal amount of
      each Note to be prepaid shall mature and become due and payable on the date
      fixed for such prepayment, together with interest on such principal amount
      accrued to such date and the applicable Make-Whole Amount, if
      any.  From and after such date, unless the Company shall fail to pay
      such principal amount when so due and payable, together with the interest and
      Make-Whole Amount, if any, as aforesaid, interest on such principal amount
      shall
      cease to accrue.  Any Note paid or prepaid in full shall be
      surrendered to the Company and cancelled and shall not be reissued, and no
      Note
      shall be issued in lieu of any prepaid principal amount of any
      Note.

    
      
        
        

        
        

      

      
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    Section
      8.5.  Purchase of Notes.  The Company will not and
      will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire,
      directly or indirectly, any of the outstanding Notes of any series except upon
      the payment or prepayment of the Notes of each series in accordance with the
      terms of this Agreement and the Notes.  The Company will promptly
      cancel all Notes acquired by it or any Affiliate pursuant to any payment or
      prepayment of Notes pursuant to any provision of this Agreement and no Notes
      may
      be issued in substitution or exchange for any such Notes.

     

    Section
      8.6.  Make-Whole Amount.  The term “Make-Whole
      Amount” means, with respect to any Note, 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 Note 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 Note, the principal of such Note that
      is to be prepaid pursuant to Section 8.1 or has become or is declared to be
      immediately due and payable pursuant to Section 12.1, as the context
      requires.

     

    “Discounted
      Value” means, with respect to the Called Principal of any Note, 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 Notes is payable) equal to the Reinvestment
      Yield with respect to such Called Principal.

     

    “Reinvestment
      Yield” means, with respect to the Called Principal of any Note, .50% (50
      basis points) 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 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 (519) (or any comparable successor publication) for actively traded U.S.
      Treasury securities having a constant maturity equal to the remaining life
      of
      such Called Principal as of such Settlement Date.  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 actively traded U.S.
      Treasury security with a maturity closest to and greater than the remaining
      life
      and (2) the actively traded U.S. Treasury security with a maturity closest
      to
      and less than the remaining life.  The Reinvestment Yield will be
      rounded to two decimal places.

    
      
        
        

        
        

      

      
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    “Remaining
      Scheduled Payments” means, with respect to the Called Principal of any
      Note, 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 Notes, 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 8.1 or 12.1.

     

    “Settlement
      Date” means, with respect to the Called Principal of any Note, the date on
      which such Called Principal is to be prepaid pursuant to Section 8.1 or has
      become or is declared to be immediately due and payable pursuant to Section
      12.1, as the context requires.

     

    
      Section
        9.  Affirmative Covenants.

    

     

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

     

    Section
      9.1.  Compliance with Law.  The Company will and
      will cause each of its Subsidiaries to comply with all laws, ordinances or
      governmental rules or regulations to which each of them is subject, including
      without limitation the USA Patriot Act and Environmental
      Laws, and will obtain and maintain in effect all licenses, certificates,
      permits, franchises and other governmental authorizations necessary to the
      ownership of their respective properties or to the conduct of their respective
      businesses, in each case to the extent necessary to ensure that non-compliance
      with such laws, ordinances or governmental rules or regulations or failures
      to
      obtain or maintain in effect such licenses, certificates, permits, franchises
      and other governmental authorizations could not, individually or in the
      aggregate, reasonably be expected to have a Material Adverse
      Effect.

     

    Section
      9.2.  Insurance.  The Company will and will cause
      each of its Subsidiaries to maintain, with financially sound and reputable
      insurers, insurance with respect to their respective properties and businesses
      against such casualties and contingencies, of such types, on such terms and
      in
      such amounts (including deductibles, co-insurance and self-insurance, if
      adequate reserves are maintained with respect thereto) as is customary in the
      case of entities of established reputations engaged in the same or a similar
      business and similarly situated.

     

    Section
      9.3.  Maintenance of Properties.  The Company will
      and will cause each of its Subsidiaries to maintain and keep, or cause to be
      maintained and kept, their respective properties in good repair, working order
      and condition (other than ordinary wear and tear), so that the business carried
      on in connection therewith may be properly conducted at all times,
provided that this Section shall not prevent the Company or any
      Subsidiary from discontinuing the operation and the maintenance of any of its
      properties if such discontinuance is desirable in the conduct of its business
      and the Company has concluded that such discontinuance could not, individually
      or in the aggregate, reasonably be expected to have a Material Adverse
      Effect.

    
      
           

        
        

      

      
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    Section
      9.4.  Payment of Taxes and Claims.  The Company
      will and will cause each of its Subsidiaries to file all tax returns (whether
      filed directly by the Company or its Subsidiaries or as part of the consolidated
      tax return of UIL Holdings) required to be filed in any jurisdiction and to
      pay
      and discharge all taxes shown to be due and payable on such returns and all
      other taxes, assessments, governmental charges, or levies imposed on them or
      any
      of their properties, assets, income or franchises, to the extent such taxes
      and
      assessments have become due and payable and before they have become delinquent
      and all claims for which sums have become due and payable that have or might
      become a Lien on properties or assets of the Company or any Subsidiary,
provided that neither the Company nor any Subsidiary need pay any such
      tax or assessment or claims if (i) the amount, applicability or validity thereof
      is contested by the Company or such Subsidiary on a timely basis in good faith
      and in appropriate proceedings, and the Company or a Subsidiary has established
      adequate reserves therefor in accordance with GAAP on the books of the Company
      or such Subsidiary or (ii) the nonpayment of all such taxes and assessments
      in
      the aggregate could not reasonably be expected to have a Material Adverse
      Effect.

     

    Section
      9.5.  Corporate Existence, Etc.  The Company will
      at all times preserve and keep in full force and effect its corporate
      existence.  Subject to Section 10.6, the Company will at all times
      preserve and keep in full force and effect the corporate existence of each
      of
      its Subsidiaries (unless merged into the Company or a Subsidiary) and all rights
      and franchises of the Company and its Subsidiaries unless, in the good faith
      judgment of the Company, the termination of or failure to preserve and keep
      in
      full force and effect such corporate existence, right or franchise could not,
      individually or in the aggregate, have a Material Adverse Effect.

     

    
      Section
        10.  Negative Covenants.

    

     

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

     

    Section
      10.1.  Maintenance of Consolidated
      Indebtedness.   The Company will not at any time permit
      Consolidated Indebtedness to be greater than 65% of Consolidated Capitalization.
      

     

    Section
      10.2.  Subsidiary Indebtedness.  The Company will
      not permit any Subsidiary to create, assume, incur, guarantee or otherwise
      become liable in respect of any Indebtedness other than:

     

    (a) 
      Indebtedness outstanding on the date hereof as specified on Schedule 5.15 and
      any extension, renewal, refunding or refinancing of any such Indebtedness,
      provided that the principal amount thereof outstanding immediately
      before giving effect to such extension, renewal, refunding or refinancing is
      not
      increased;

     

    (b) 
      Indebtedness of any Person existing at the time such Person becomes a Subsidiary
      (and not incurred in anticipation thereof) and any extension, renewal, refunding
      or refinancing of any such Indebtedness, provided that the principal
      amount thereof outstanding immediately before giving effect to such extension,
      renewal, refunding or refinancing is not increased and neither the Company
      nor
      any other Subsidiary shall assume or otherwise be directly or indirectly liable
      for such Indebtedness;

    
      
        
        

        
        

      

      
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          19
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    (c) 
      Indebtedness owing to the Company or a Wholly-Owned Subsidiary; and

     

    (d) 
      Indebtedness not otherwise permitted by clauses (a) through (c) above,
provided that Priority Debt (as defined below) does not exceed 10% of
      Consolidated Capitalization.

     

    For
      purposes of this Section 10.2, a Subsidiary shall be deemed to have incurred
      Indebtedness previously owed to the Company or another Subsidiary at the time
      the obligee ceases for any reason to be the Company or a Wholly-Owned
      Subsidiary.

     

    Section
      10.3.  Liens.  The Company will not and will not
      permit any Subsidiary to create, assume, incur or suffer to exist any Lien
      upon
      or with respect to any property or assets, whether now owned or hereafter
      acquired, without making effective provision (pursuant to documentation in
      form
      and substance reasonably satisfactory to the Required Holders) whereby the
      Notes
      shall be secured by such Lien equally and ratably with or prior to any and
      all
      Indebtedness and other obligations to be secured thereby, provided that
      nothing in this Section 10.3 shall prohibit:

     

    (a) 
      Liens in respect of property of the Company or a Subsidiary existing on the
      date
      of the first Closing and described in Schedule 5.15;

     

    (b) 
      Liens in respect of property acquired or constructed by the Company or a
      Subsidiary after the date of the first Closing, which are created at the time
      of
      or within 120 days after acquisition or completion of construction of such
      property to secure Indebtedness assumed or incurred to finance all or any part
      of the purchase price or cost of construction of such property,
provided that in any such case

     

    (i)
      no
      such Lien shall extend to or cover any other property of the Company or such
      Subsidiary, as the case may be, and

     

    (ii)
      the
      aggregate principal amount of Indebtedness secured by all such Liens in respect
      of any such property shall not exceed the cost of such property and any
      improvements then being financed;

     

    (c) 
      Liens in respect of property acquired by the Company or a Subsidiary after
      the
      date of the first Closing, existing on such property at the time of acquisition
      thereof (and not created in anticipation thereof), or in the case of any Person
      that after the date of the first Closing becomes a Subsidiary or is consolidated
      with or merged with or into the Company or a Subsidiary or sells, leases or
      otherwise disposes of all or substantially all of its property to the Company
      or
      a Subsidiary, Liens existing at the time such Person becomes a Subsidiary or
      is
      so consolidated or merged or effects such sale, lease or other disposition
      of
      property (and not created in anticipation thereof), provided that in
      any such case no such Lien shall extend to or cover any other property of the
      Company or such Subsidiary, as the case may be;

    
      
        
        

        
        

      

      
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    (d) 
      Liens securing Indebtedness owed by a Subsidiary to the Company or to a
      Subsidiary;

     

    (e) 
      extensions, renewals or replacements of any Liens permitted by clause (a),
      (b) or (c) above (including successive extensions, renewals and replacements),
      provided in each case that the principal amount of Indebtedness (or the
      maximum commitment therefor) secured by any such Lien is not increased and
      such
      Lien does not extend to or cover any property other than the property covered
      by
      such Lien on the date of such extension, renewal or replacement;

     

    (f) 
      Liens (i) for taxes or assessments or other governmental charges or levies,
      either not yet delinquent, or which are being contested in good faith by
      appropriate proceedings provided that the Company has established
      adequate reserves therefor in accordance with GAAP, (ii) created by or resulting
      from litigation or legal proceedings which are currently being contested in
      good
      faith by appropriate proceedings and do not involve amounts that in the
      aggregate would exceed $10,000,000 and (iii) incidental to the normal conduct
      of
      the business of the Company or any Subsidiary or the ownership of its property
      which are not incurred in connection with the incurrence of Indebtedness and
      which do not in the aggregate materially impair the use of such property in
      the
      operation of the business of the Company and its Subsidiaries taken as a whole
      or the value of such property for the purposes of such business; or

     

    (g) 
      Liens which would otherwise not be permitted by clauses (a) through (e) above,
      securing additional Indebtedness of the Company or a Subsidiary,
provided that Priority Debt does not exceed 10% of Consolidated
      Capitalization.

     

    As
      used
      in this Agreement the term “Priority Debt” means, at any date, the sum
      (without duplication) of (A) the aggregate unpaid principal amount of
      Indebtedness (including Capitalized Lease Obligations) of the Company and its
      Subsidiaries secured by Liens (other than Liens permitted by clauses (a) through
      (f) of this Section 10.3) plus (B) the aggregate Attributable Debt in connection
      with all Sale and Leaseback Transactions of the Company and its Subsidiaries
      entered into after the date of the first Closing in accordance with the
      provisions of Section 10.4(c) plus (C) the aggregate unpaid principal amount
      of
      Indebtedness of all Subsidiaries (other than Indebtedness permitted by Section
      10.2(b) and (c)).

     

    Section
      10.4.Limitation on Sale and Leaseback Transactions.  The
      Company will not and will not permit any Subsidiary to enter into any
      arrangement, directly or indirectly, with any Person whereby the Company or
      such
      Subsidiary shall sell, lease or transfer any asset, whether now owned or
      hereafter acquired, and then or thereafter rent or lease as lessee such asset
      or
      any part thereof or any other asset that the Company or such Subsidiary, as
      the
      case may be, intends to use for substantially the same purposes as the asset
      being sold, leased or transferred (any such sale, lease or transfer and rent
      or
      lease, a “Sale and Leaseback Transaction”), unless:

     

    (a) 
      such Sale and Leaseback Transaction involves an asset upon which a Lien would
      at
      the time be permitted by Section 10.3(b) without equally and ratably
      securing

    
      
          

        
        

      

      
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    the
      Notes
      or such Sale and Leaseback Transaction is between the Company and a Subsidiary
      as lessee and involves an asset subject to a Lien permitted by Section
      10.3(d);

     

    (b) 
      such lease is for a period not exceeding one year, at the expiration of which
      it
      is intended that the use of such asset by the lessee will be discontinued;
      or

     

    (c) 
      Priority Debt (which includes the Attributable Debt resulting from such Sale
      and
      Leaseback Transaction) does not exceed 10% of Consolidated
      Capitalization.

     

    Section
      10.5.  Disposition of Assets.  The Company will not
      and will not permit any Subsidiary to, directly or indirectly, sell, lease,
      transfer or otherwise dispose of (collectively a “Disposition”) any of
      its assets, whether now owned or hereafter acquired, unless after giving effect
      to any proposed Disposition, the aggregate net book value of all assets of
      the
      Company and its Subsidiaries that were the subject of a Disposition during
      the
      period (x) commencing on January 1, 2007 and ending on the date of such proposed
      Disposition does not exceed 10% of Consolidated Total Assets and (y) commencing
      on the first day of the then current fiscal year of the Company and ending
      on
      the date of such proposed Disposition does not exceed 5% of Consolidated Total
      Assets (Consolidated Total Assets in each case to be determined as at the end
      of
      the immediately preceding fiscal year), provided that the following
      Dispositions shall not be taken into account for purposes of this Section
      10.5:  

     

    (a) 
      any Disposition in the ordinary course of business;

     

    (b) 
      the Disposition of the Company’s Electric Systems Work Center Facility located
      in Shelton, Connecticut;

     

    (c) 
      Sale and Leaseback Transactions permitted by Section 10.4; and

     

    (d) 
      any other Disposition for fair value to the extent that the Net Proceeds Amount
      of such Disposition is applied within 360 days after the date thereof to the
      acquisition of other assets for use in the business of the Company or any
      Subsidiary (such assets not to include cash or marketable securities) or to
      reduce outstanding unsubordinated Indebtedness of the Company or any Subsidiary
      (any such reduction to include either (i) prepayment of Notes pursuant to
      Section 8.1 in an aggregate unpaid principal amount that bears the same
      relation to the amount then being applied to reduce such Indebtedness as the
      aggregate unpaid principal amount of the Notes bears to the aggregate unpaid
      principal amount of outstanding unsubordinated Indebtedness of the Company
      and
      its Subsidiaries, or (ii) an offer by the Company to all holders of Notes to
      purchase, at not less than par on the same terms and conditions and which offer
      shall remain outstanding for at least 30 days, Notes in an aggregate unpaid
      principal amount at least equal to such pro rata portion of such unsubordinated
      Indebtedness being so reduced, allocated pro rata among all Notes tendered,
      and
      the requirements of this subclause (d) with respect to prepayment of Notes
      shall
      be deemed to be satisfied with respect to such Disposition if such offer is
      made
      and, if accepted, consummated).

    
      
                

        
        

      

      
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    For
      purposes of this Section 10.5 any shares of Voting Stock of a Subsidiary that
      are the subject of a Disposition (including without limitation pursuant to
      an
      issuance of shares by such Subsidiary) shall be valued at the aggregate net
      book
      value of the assets of such Subsidiary multiplied by a fraction of which the
      numerator is the aggregate number of shares of Voting Stock of such Subsidiary
      issued or disposed of in such Disposition and the denominator is the aggregate
      number of shares of Voting Stock of such Subsidiary outstanding immediately
      prior to such Disposition.

     

    Section
      10.6.  Merger, Consolidation, Etc.  The Company
      will not consolidate with or merge with any other corporation or convey,
      transfer or lease all or substantially all of its assets in a single transaction
      or series of transactions to any Person unless:

     

    (a) 
      the successor formed by such consolidation or the survivor of such merger or
      the
      Person that acquires by conveyance, transfer or lease substantially all of
      the
      assets of the Company as an entirety, as the case may be, shall be a solvent
      corporation organized and existing under the laws of the United States or any
      State thereof (including the District of Columbia), and, if the Company is
      not
      such successor corporation, (i) such corporation shall have executed and
      delivered to each holder of any Notes its assumption of the due and punctual
      performance and observance of each covenant and condition of this Agreement
      and
      the Notes in form and substance reasonably satisfactory to the Required Holders
      and (ii) shall have caused to be delivered to each holder of any Notes an
      opinion of nationally recognized independent counsel, or other independent
      counsel reasonably satisfactory to the Required Holders, to the effect that
      all
      agreements or instruments effecting such assumption are enforceable in
      accordance with their terms and comply with the terms hereof; and

     

    (b) 
      immediately after giving effect to such transaction, no Default or Event of
      Default shall have occurred and be continuing.

     

    No
      such
      conveyance, transfer or lease of all or substantially all of the assets of
      the
      Company shall have the effect of releasing the Company or any successor
      corporation that shall theretofore have become such in the manner prescribed
      in
      this Section 10.6 from its liability under this Agreement or the
      Notes.

     

    Section
      10.7.  Transactions with Affiliates.  The Company
      will not and will not permit any Subsidiary to enter into directly or indirectly
      any transaction or group of related transactions (including without limitation
      the purchase, lease, sale or exchange of properties of any kind or the rendering
      of any service) with any Affiliate (other than the Company or another
      Subsidiary), except in the ordinary course and pursuant to the reasonable
      requirements of the Company’s or such Subsidiary’s business and upon fair and
      reasonable terms no less favorable to the Company or such Subsidiary than would
      be obtainable in a comparable arm’s-length transaction with a Person not an
      Affiliate.

     

    Section
      10.8.  Terrorism Sanctions Regulations.  The
      Company will not and will not permit any Subsidiary to (a) become a Person
      described or designated in the Specially Designated Nationals and Blocked
      Persons List of the Office of Foreign Assets Control or in 

    
      
        
        

        
        

      

      
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    Section
      1
      of the Anti-Terrorism Order or (b) knowingly engage in any dealings or
      transactions with any such Person.

     

    
      Section
        11.  Events of Default.

    

     

    An
“Event
      of Default” shall exist if any of the following conditions or events shall occur
      and be continuing:

     

    (a) 
      the Company defaults in the payment of any principal or Make-Whole Amount,
      if
      any, on any Note when the same becomes due and payable, whether at maturity
      or
      at a date fixed for prepayment or by declaration or otherwise; or

     

    (b) 
      the Company defaults in the payment of any interest on any Note for more than
      five days after the same becomes due and payable; or

     

    (c) 
      the Company defaults in the performance of or compliance with any term contained
      in Section 7.1(d) (provided that if the Default, Event of Default or claimed
      default giving rise to the requirement for a notice in respect thereof, the
      non-delivery of which has caused the occurrence of an Event of Default
      hereunder, has been cured or otherwise remedied, such that it is not a Default
      or Event of Default under Section 11(d), then no Event of Default hereunder
      by
      virtue of such breach of Section 7.1(d) shall constitute an Event of Default
      hereunder) or Sections 10.1 to 10.6, inclusive; or

     

    (d) 
      the Company defaults in the performance of or compliance with any term contained
      herein (other than those referred to in paragraphs (a), (b) and (c) of this
      Section 11) and such default is not remedied within 30 days after a Responsible
      Officer obtains knowledge of such default; or

     

    (e) 
      any representation or warranty made in writing by or on behalf of the Company
      or
      any officer of the Company in this Agreement or in any writing furnished in
      connection with the transactions contemplated hereby proves to have been false
      or incorrect in any material respect on the date as of which made;
      or

    

    (f) 
      (i) the Company or any Significant Subsidiary is in default (as principal or
      as
      guarantor or other surety) in the payment of any principal of or premium or
      make-whole amount or interest on any Indebtedness (other than the Notes) that
      is
      outstanding in an aggregate principal amount of at least $10,000,000 beyond
      any
      period of grace provided with respect thereto, or (ii) the Company or any
      Significant Subsidiary is in default in the performance of or compliance with
      any term of any evidence of any Indebtedness outstanding in an aggregate
      principal amount of at least $10,000,000 or of any mortgage, indenture or other
      agreement relating thereto or any other condition exists, and as a consequence
      of such default or condition such Indebtedness has become, or has been declared
      (or one or more Persons are entitled to declare such Indebtedness to be), due
      and payable before its stated maturity or before its regularly scheduled dates
      of payment, or (iii) as a consequence of the occurrence or continuation of
      any
      event or condition (other than the passage of time or the right of the holder
      of
      Indebtedness to

    
      
        
        

        
        

      

      
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    convert
      such Indebtedness into equity interests), (x) the Company or any Subsidiary
      has
      become obligated to purchase or repay Indebtedness before its regular maturity
      or before its regularly scheduled dates of payment in an aggregate outstanding
      principal amount of at least $10,000,000, or (y) one or more Persons have the
      right to require the Company or any Subsidiary so to purchase or repay such
      Indebtedness; or

     

    (g) 
      the Company or any Significant Subsidiary (i) is generally not paying, or admits
      in writing its inability to pay, its debts as they become due, (ii) files,
      or
      consents by answer or otherwise to the filing against it of, a petition for
      relief or reorganization or arrangement or any other petition in bankruptcy,
      for
      liquidation or to take advantage of any bankruptcy, insolvency, reorganization,
      moratorium or other similar law of any jurisdiction, (iii)  makes an
      assignment for the benefit of its creditors, (iv) consents to the appointment
      of
      a custodian, receiver, trustee or other officer with similar powers with respect
      to it or with respect to any substantial part of its property, (v) is
      adjudicated as insolvent or to be liquidated, or (vi) takes corporate action
      for
      the purpose of any of the foregoing; or

     

    (h) 
      a court or governmental authority of competent jurisdiction enters an order
      appointing, without consent by the Company or any Significant Subsidiary, a
      custodian, receiver, trustee or other officer with similar powers with respect
      to it or with respect to any substantial part of its property, or constituting
      an order for relief or approving a petition for relief or reorganization or
      any
      other petition in bankruptcy or for liquidation or to take advantage of any
      bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution,
      winding-up or liquidation of the Company or any such Significant Subsidiary,
      or
      any such petition shall be filed against the Company or any such Significant
      Subsidiary and such petition shall not be dismissed within 60 days;
      or

     

    (i) 
      a final judgment or judgments for the payment of money aggregating in excess
      of
      $10,000,000 are rendered against one or more of the Company and its Significant
      Subsidiaries which judgments are not, within 60 days after entry thereof,
      bonded, discharged or stayed pending appeal, or are not discharged within 60
      days after the expiration of such stay; or

    

    (j) 
      if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA
      or
      the Code for any plan year or part thereof or a waiver of such standards or
      extension of any amortization period is sought or granted under section 412
      of
      the Code, (ii) a notice of intent to terminate any Plan shall have been or
      is
      reasonably expected to be filed with the PBGC or the PBGC shall have instituted
      proceedings under ERISA section 4042 to terminate or appoint a trustee to
      administer any Plan or the PBGC shall have notified the Company or any ERISA
      Affiliate that a Plan may become a subject of any such proceedings,
      (iii)  the Company or any ERISA Affiliate shall have incurred or is
      reasonably expected to incur 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, (iv) the Company or any ERISA Affiliate withdraws from any Multiemployer
      Plan and withdrawal liability exceeds $5,000,000, or (v) the Company or any
      Subsidiary establishes or amends any employee welfare benefit plan that provides
      post-employment

    
      
        
        

        
        

      

      
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    welfare
      benefits in any manner that would increase the liability of the Company or
      any
      Subsidiary thereunder by more than $5,000,000; and any such event or events
      described in clauses (i) through (v) above, either individually or together
      with
      any other such event or events, could reasonably be expected to have a Material
      Adverse Effect.

     

    As
      used
      in Section 11(j), the terms “employee benefit plan” and “employee
      welfare benefit plan” shall have the respective meanings assigned to such
      terms in section 3 of ERISA.

     

    
      Section
        12.  Remedies on Default, Etc.

    

     

    Section
      12.1.  Acceleration.  (a)  If an Event of
      Default with respect to the Company described in paragraph (g) or (h) of Section
      11 (other than an Event of Default described in clause (i) of paragraph (g)
      or
      described in clause (vi) of paragraph (g) by virtue of the fact that such clause
      encompasses clause (i) of paragraph (g)) has occurred, all the Notes then
      outstanding shall automatically become immediately due and payable.

     

    (b) 
      If any other Event of Default has occurred and is continuing, the Required
      Holders may at any time at its or their option, by notice or notices to the
      Company, declare all the Notes at the time outstanding to be immediately due
      and
      payable.

     

    (c) 
      If any Event of Default described in paragraph (a) or (b) of Section 11 has
      occurred and is continuing, any holder or holders of Notes at the time
      outstanding affected by such Event of Default may at any time, at its or their
      option, by notice or notices to the Company, declare all the Notes held by
      it or
      them to be immediately due and payable.

     

    Upon
      any
      Note becoming due and payable under this Section 12.1, whether automatically
      or
      by declaration, such Note will forthwith mature and the entire unpaid principal
      amount of such Note, plus (x) all accrued and unpaid interest thereon and (y)
      the Make-Whole Amount determined in respect of such principal amount, shall
      all
      be immediately due and payable, in each and every case without presentment,
      demand, protest or further notice, all of which are hereby
      waived.  The Company acknowledges, and the parties hereto agree, that
      each holder of a Note has the right to maintain its investment in the Notes
      free
      from repayment by the Company (except as herein specifically provided) and
      that
      the provision for payment of a Make-Whole Amount by the Company in the event
      that the Notes are prepaid or are accelerated as a result of an Event of
      Default, is intended to provide compensation for the deprivation of such right
      under such circumstances.

     

    Section
      12.2.  Other Remedies.  If any Default or Event of
      Default has occurred and is continuing, and irrespective of whether any Notes
      have become or have been declared immediately due and payable under
      Section 12.1, the holder of any Note at the time outstanding may proceed to
      protect and enforce the rights of such holder by an action at law, suit in
      equity or other appropriate proceeding, whether for the specific performance
      of
      any agreement contained herein or in any Note, or for an injunction against
      a
      violation of any of the terms hereof or thereof, or in aid of the exercise
      of
      any power granted hereby or thereby or by law or otherwise.

    
      
        
        

        
        

      

      
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    Section
      12.3.  Rescission.  At any time after any Notes
      have been declared due and payable pursuant to paragraph (b) or (c) of Section
      12.1, the Required Holders, by written notice to the Company, may rescind and
      annul any such declaration and its consequences if (a) the Company has paid
      all
      overdue interest on the Notes, all principal of and Make-Whole Amount, if any,
      on any Notes that are due and payable and are unpaid other than by reason of
      such declaration, and all interest on such overdue principal and Make-Whole
      Amount, if any, and any overdue interest in respect of the Notes, at the Default
      Rate, (b) all Events of Default and Defaults, other than the non-payment of
      amounts that have become due solely by reason of such declaration, have been
      cured or have been waived pursuant to Section 17, and (c) no judgment or decree
      has been entered for the payment of any monies due pursuant hereto or to the
      Notes.  No rescission and annulment under this Section 12.3 will
      extend to or affect any subsequent Event of Default or Default or impair any
      right consequent thereon.

     

    Section
      12.4.  No Waivers or Election of Remedies, Expenses,
      Etc.  No course of dealing and no delay on the part of any holder
      of any Note in exercising any right, power or remedy shall operate as a waiver
      thereof or otherwise prejudice such holder’s rights, powers or
      remedies.  No right, power or remedy conferred by this Agreement or by
      any Note upon any holder thereof shall be exclusive of any other right, power
      or
      remedy referred to herein or therein or now or hereafter available at law,
      in
      equity, by statute or otherwise.  Without limiting the obligations of
      the Company under Section 15, the Company will pay to the holder of each Note
      on
      demand such further amount as shall be sufficient to cover all costs and
      expenses of such holder incurred in any enforcement or collection under this
      Section 12, including without limitation reasonable attorneys’ fees, expenses
      and disbursements.

     

     

    
      Section
        13.  Registration; Exchange; Substitution of
        Notes.

    

     

    Section
      13.1.  Registration of Notes.  The
      Company shall keep at its principal
      executive office a register for the registration and registration of transfers
      of Notes.  The name and address of each holder of one or more Notes,
      each transfer thereof and the name and address of each transferee of one or
      more
      Notes shall be registered in such register.  Prior to due presentment
      for registration of transfer, the Person in whose name any Note shall be
      registered shall be deemed and treated as the owner and holder thereof for
      all
      purposes hereof, and the Company shall not be affected by any notice or
      knowledge to the contrary.  The Company shall give to any holder of a
      Note that is an Institutional Investor promptly upon request therefor, a
      complete and correct copy of the names and addresses of all registered holders
      of Notes.

     

    Section
      13.2.  Transfer and Exchange of Notes.  Upon
      surrender of any Note at the principal
      executive office of the Company for registration of transfer or exchange (and
      in
      the case of a surrender for registration of transfer, duly endorsed or
      accompanied by a written instrument of transfer duly executed by the registered
      holder of such Note or his attorney duly authorized in writing and accompanied
      by the address for notices of each transferee of such Note or part thereof),
      within five Business Days thereafter the Company shall execute and deliver,
      at
      the Company’s expense (except as provided below), one or more new Notes (as
      requested by the holder thereof) in exchange therefor, of the same series and
      in
      an aggregate principal amount equal to the unpaid principal amount of the
      surrendered Note.  Each such new Note shall be payable to such Person
      as such holder may request and shall be substantially in the form set out

    
      
        
        

        
        

      

      
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    in
      Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, Exhibit 1-D,
      Exhibit 1-E and Exhibit 1-F, as
      applicable.  Each such new Note shall be dated and bear interest from
      the date to which interest shall have been paid on the surrendered Note or
      dated
      the date of the surrendered Note if no interest shall have been paid
      thereon.  The Company may require payment of a sum sufficient to cover
      any stamp tax or governmental charge imposed in respect of any such transfer
      of
      Notes.  Notes shall not be transferred in denominations of less than
      $100,000, provided that if necessary to enable the registration of
      transfer by a holder of its entire holding of Notes, one Note may be in a
      denomination of less than $100,000.  Any transferee, by its acceptance
      of a Note registered in its name (or the name of its nominee), shall be deemed
      to have made the representations set forth in Section 6.

     

    Section
      13.3.  Replacement of Notes.  Upon
      receipt by the Company of evidence
      reasonably satisfactory to it of the ownership of and the loss, theft,
      destruction or mutilation of any Note (which evidence shall be, in the case
      of
      an Institutional Investor, notice from such Institutional Investor of such
      ownership and such loss, theft, destruction or mutilation), and

     

    (a) 
      in the case of loss, theft or destruction, of indemnity reasonably satisfactory
      to it (provided that if the holder of such Note is, or is a nominee
      for, an original Purchaser or any other Institutional Investor, such Person’s
      own unsecured agreement of indemnity shall be deemed to be satisfactory),
      or

     

    (b 
      )in the case of mutilation, upon surrender and cancellation
      thereof,

     

    within
      five Business Days thereafter the Company at its own expense shall execute
      and
      deliver, in lieu thereof, a new Note of the same series, dated and bearing
      interest from the date to which interest shall have been paid on such lost,
      stolen, destroyed or mutilated Note or dated the date of such lost, stolen,
      destroyed or mutilated Note if no interest shall have been paid
      thereon.

     

    
      Section
        14.  Payments on Notes.

    

     

    Section
      14.1.  Place of Payment.  Subject to Section 14.2,
      payments of principal, Make-Whole Amount, if any, and interest becoming due
      and
      payable on the Notes shall be made at the principal office of Citibank, N.A.
      in
      New York City.  The Company may at any time, by notice to each holder
      of a Note, change the place of payment of the Notes so long as such place of
      payment shall be the principal office of a bank or trust company in New York
      City.

     

    Section
      14.2.  Home Office Payment.  So long as you or your
      nominee shall be the holder of any Note, and notwithstanding anything contained
      in Section 14.1 or in such Note to the contrary, the Company will pay all sums
      becoming due on such Note 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 in writing for such purpose, without
      the presentation or surrender of such Note or the making of any notation
      thereon, except that upon written request of the Company made concurrently
      with
      or reasonably promptly after payment or prepayment in full of any Note, you
      shall surrender such Note for cancellation, reasonably promptly after any such
      request, to the Company at its principal executive office or at the place of
      payment most 

    
      
        
        

        
        

      

      
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    recently
      designated by the Company pursuant to Section 14.1.  Prior to any sale
      or other disposition of any Note 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 Note to
      the
      Company in exchange for a new Note or Notes of the same series pursuant to
      Section 13.2.  The Company will afford the benefits of this Section
      14.2 to any Institutional Investor that is the direct or indirect transferee
      of
      any Note purchased by you under this Agreement and that has made the same
      agreement relating to such Note as you have made in this Section
      14.2.

     

    
      Section
        15.  Expenses, Etc.

    

     

    Section
      15.1.  Transaction Expenses.  Whether or not the
      transactions contemplated hereby are consummated, the Company will pay all
      costs
      and expenses (including reasonable attorneys’ fees of your special counsel and,
      if reasonably required, local or other counsel) incurred by you and each other
      Purchaser or holder of a Note in connection with such transactions and in
      connection with any amendments, waivers or consents under or in respect of
      this
      Agreement or the Notes (whether or not such amendment, waiver or consent becomes
      effective), including without limitation:  (a) the costs and expenses
      incurred in enforcing or defending (or determining whether or how to enforce
      or
      defend) any rights under this Agreement or the Notes or in responding to any
      subpoena or other legal process or informal investigative demand issued in
      connection with this Agreement or the Notes, or by reason of being a holder
      of
      any Note; (b) the costs and expenses incurred in connection with the initial
      filing of this Agreement and all related documents and financial information
      and
      all subsequent annual and interim filings of documents and financial information
      related to this Agreement, with the Securities Valuation Office of the National
      Association of Insurance Commissioners or any successor organization succeeding
      to the authority thereof; and (c) the costs and expenses, including financial
      advisors’ fees, incurred in connection with the insolvency or bankruptcy of the
      Company or any Subsidiary or in connection with any work-out or restructuring
      of
      the transactions contemplated hereby and by the Notes.  The Company
      will pay, and will save you and each other holder of a Note harmless from,
      all
      claims in respect of any fees, costs or expenses if any, of brokers and finders
      (other than those retained by you).

     

    In
      furtherance of the foregoing, on the date of each Closing the Company will
      pay
      or cause to be paid the fees and disbursements and other charges (including
      estimated unposted disbursements and other charges as of the date of each
      Closing) of your special counsel which are reflected in the statement of such
      special counsel submitted to the Company on or prior to the date of each
      Closing.  The Company will also pay, promptly upon receipt of
      supplemental statements therefor, reasonable additional fees, if any, and
      disbursements and charges of such special counsel in connection with the
      transactions hereby contemplated (including disbursements and other charges
      unposted as of the date of either Closing to the extent such disbursements
      and
      other charges exceed estimated amounts paid as aforesaid).

     

    Section
      15.2.  Survival.  The obligations of the Company
      under this Section 15 will survive the payment or transfer of any Note, the
      enforcement, amendment or waiver of any provision of this Agreement or the
      Notes, and the termination of this Agreement.

    
      
        
        

        
        

      

      
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          29
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      Section
        16.  Survival of Representations and Warranties; Entire
        Agreement

    

     

    All
      representations and warranties contained herein shall survive the execution
      and
      delivery of this Agreement and the Notes, the purchase or transfer by you of
      any
      Note or portion thereof or interest therein and the payment of any Note, and
      may
      be relied upon by any subsequent holder of a Note, regardless of any
      investigation made at any time by or on behalf of you or any other holder of
      a
      Note.  All statements contained in any certificate or other instrument
      delivered by or on behalf of the Company pursuant to this Agreement shall be
      deemed representations and warranties of the Company under this
      Agreement.  Subject to the preceding sentence, this Agreement and the
      Notes 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
        17.  Amendment and Waiver.

    

     

    Section
      17.1.  Requirements.  This Agreement and the Notes
      may be amended, and the observance of any term hereof or of the Notes 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 21, 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 Note at the time outstanding, (i)
      subject to the provisions of Section 12 relating to acceleration or rescission,
      change the amount or time of any prepayment or payment of principal of, or
      reduce the rate or change the time of payment or method of computation of
      interest or of the Make-Whole Amount on, the Notes, (ii) change the percentage
      of the principal amount of the Notes the holders of which are required to
      consent to any such amendment or waiver, or (iii) amend any of Sections 8,
      11(a), 11(b), 12, 17 or 20.

     

    Section
      17.2.  Solicitation of Holders of Notes.

     

    (a) 
      Solicitation.  The Company will provide each holder of the
      Notes (irrespective of the amount or series of Notes 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 or of the Notes.  The Company will deliver executed
      or true and correct copies of each amendment, waiver or consent effected
      pursuant to the provisions of this Section 17 to each holder of outstanding
      Notes promptly following the date on which it is executed and delivered by,
      or
      receives the consent or approval of, the requisite holders of
      Notes.

     

    (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 any series
      of Notes as consideration for or as an inducement to such holder’s consideration
      of or entering into 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 each series
      of Notes then outstanding even if such holder did not consent to such waiver
      or
      amendment.

    
      
        
        

        
        

      

      
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    Section
      17.3.  Binding Effect, Etc.  Any amendment or
      waiver consented to as provided in this Section 17 applies equally to all
      holders of each series of Notes and is binding upon them and upon each future
      holder of any Note of any series and upon the Company without regard to whether
      such Note 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 Note of any series nor any delay in exercising
      any
      rights hereunder or under any Note of any series shall operate as a waiver
      of
      any rights of any holder of such Note.  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
      17.4.  Notes held by Company, Etc.  Solely for the
      purpose of determining whether the holders of the requisite percentage of the
      aggregate principal amount of Notes then outstanding approved or consented
      to
      any amendment, waiver or consent to be given under this Agreement or the Notes,
      or have directed the taking of any action provided herein or in the Notes to
      be
      taken upon the direction of the holders of a specified percentage of the
      aggregate principal amount of Notes then outstanding, Notes directly or
      indirectly owned by the Company or any of its Affiliates shall be deemed not
      to
      be outstanding.

     

    
      Section
        18.  Notices.

    

     

    All
      notices and communications provided for hereunder shall be 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
      United States mail, postage prepaid, or (c) by a recognized United States based
      overnight delivery service (with charges prepaid).  Any such notice
      must be sent:

     

    (a) 
      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 in writing,

     

    (b) 
      if to any other holder of any Note, to such holder at such address as such
      other
      holder shall have specified to the Company in writing, or

     

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

     

    Notices
      under this Section 18 will be deemed given only when actually
      received.

     

    
      Section
        19.  Reproduction of Documents.

    

     

    This
      Agreement and all documents relating thereto, except the Notes themselves,
      but
      including, without limitation, (a) consents, waivers and modifications that
      may
      hereafter be executed, (b) documents received by you at either Closing, and
      (c)
      financial statements, certificates and other information previously or hereafter
      furnished to you, may be reproduced by

    
      
        
        

        
        

      

      
        -
          31
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    you
      by
      any photographic, photostatic, electronic, digital, 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 19 shall not
      prohibit the Company or any other holder of Notes 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
        20.  Confidential Information.

    

     

    For
      the
      purposes of this Section 20, “Confidential Information” means
      information delivered to you by or on behalf of the Company, any Subsidiary
      or
      UIL Holdings in connection with the transactions contemplated by or otherwise
      pursuant to this Agreement 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, such Subsidiary or UIL Holdings,
      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 becomes known to you other than
      through disclosure by the Company, any Subsidiary or UIL Holdings, (d)
      constitutes financial statements delivered to you under Section 7.1 that are
      otherwise publicly available or (e) involves the tax treatment and tax structure
      of the transactions as defined in United States Treasury Regulation section
      1.6011-4(c) and all materials of any kind (including opinions or other tax
      analyses) that are provided relating to such tax treatment and tax
      structure.  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, trustees, employees, agents, attorneys and
      Affiliates (to the extent such disclosure reasonably relates to the
      administration of the investment represented by your Notes), (ii) your financial
      advisors and other professional advisors who agree, or whose duties require
      them, to hold confidential the Confidential Information substantially in
      accordance with the terms of this Section 20, (iii) any other holder of any
      Note, (iv) any Institutional Investor to which you sell or offer to sell such
      Note 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 20), (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 20), (vi) any federal or state 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

    
      
        
        

        
        

      

      
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          32
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    delivery
      and disclosure to be necessary or appropriate in the enforcement or for the
      protection of the rights and remedies under your Notes and this
      Agreement.  Each holder of a Note, by its acceptance of a Note, will
      be deemed to have agreed to be bound by and to be entitled to the benefits
      of
      this Section 20 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 Note of information required to be delivered to such holder under this
      Agreement 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 20.

     

     

    
      Section
        21.  Substitution of Purchaser.

    

     

    You
      shall
      have the right to substitute any one of your Affiliates as the purchaser of
      the
      Notes 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 21), 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
      Notes 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 21), 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 Notes under this Agreement.

     

    
      Section
        22.  Miscellaneous.

    

     

    Section
      22.1.  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 Note) whether
      so expressed or not.

     

    Section
      22.2.  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.

     

    For
      the
      avoidance of doubt, all Schedules and Exhibits attached to this Agreement shall
      be deemed to be a part hereof.

     

    Section
      22.3.  Consent to Jurisdiction; Service of Process; Waiver of Jury
      Trial.  (a)  The Company irrevocably submits to the
      non-exclusive in personam jurisdiction of any New York State or
      federal court sitting in the Borough of Manhattan, The City of New York, over
      any suit, action or proceeding arising out of or relating to this Agreement
      or
      the Notes.  To the fullest extent it may effectively do so under
      applicable law, the Company irrevocably waives and agrees 

    
      
        
        

        
        

      

      
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          33
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    not
      to
      assert, by way of motion, as a defense or otherwise, any claim that it is not
      subject to the in personam jurisdiction of any such court, any
      objection that it may now or hereafter have to the laying of the venue of any
      such suit, action or proceeding brought in any such court and any claim that
      any
      such suit, action or proceeding brought in any such court has been brought
      in an
      inconvenient forum.

     

    (b) 
      The Company consents to process being served in any suit, action or proceeding
      of the nature referred to in paragraph (a) of this Section 22.3 by mailing
      a copy thereof by registered or certified mail, postage prepaid, return receipt
      requested, to the address of the Company specified in Section 18 or at such
      other address of which you shall then have been notified pursuant to said
      Section.  The Company agrees that such service upon receipt
      (i) shall be deemed in every respect effective service of process upon it
      in any such suit, action or proceeding and (ii) shall, to the full extent
      permitted by law, be taken and held to be valid personal service upon and
      personal delivery to the Company.  Notices hereunder shall be
      conclusively presumed received as evidenced by a delivery receipt furnished
      by
      the United States Postal Service or any reputable commercial delivery
      service.

     

    (c) 
      Nothing in this Section 22.3 shall affect the right of any holder of Notes
      to serve process in any manner permitted by law, or limit any right that the
      holders of any of the Notes may have to bring proceedings against the Company
      in
      the courts of any appropriate jurisdiction or to enforce in any lawful manner
      a
      judgment obtained in one jurisdiction in any other jurisdiction.

     

    (d) 
      Each of the parties hereto waives trial by jury in any action brought on or
      with
      respect to this Agreement, the Notes or any other document executed in
      connection herewith or therewith.

     

    Section
      22.4.  Payments Due on Non-Business Days.  Anything
      in this Agreement or the Notes to the contrary notwithstanding (but without
      limiting the requirement in Section 8.2 that notice of any optional prepayment
      specify a Business Day as the date fixed for such prepayment), any payment
      of
      principal of or Make-Whole Amount or interest on any Note 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; provided that if the
      maturity date of any Note is a date other than a Business Day, the payment
      otherwise due on such maturity date shall be made on the next succeeding
      Business Day and shall include the additional days elapsed in the computation
      of
      interest payable on such next succeeding Business Day.

     

    Section
      22.5.  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 fullest
      extent permitted by applicable law) not invalidate or render unenforceable
      such
      provision in any other jurisdiction.

    

    Section22.6. 
      Accounting Terms.  All accounting terms used herein
      which are not expressly defined in this Agreement have the meanings respectively
      given to them in accordance 

    
      
        
        

        
        

      

      
        -
          34
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    with
      GAAP.  Except as otherwise specifically provided herein, all
      computations made pursuant to this Agreement shall be made in accordance with
      GAAP and all balance sheets and other financial statements with respect thereto
      shall be prepared in accordance with GAAP.

     

    Each
      of
      the holders of the Notes by its acceptance thereof understands and agrees with
      the Company that in the event that a change in GAAP is the sole cause of the
      Company violating any of the covenants contained in Sections 10.1 through 10.5
      hereof, or causes a Default or Event of Default to occur, at a time when no
      other Default or Event of Default exists, then and in such event, anything
      contained in this Agreement to the contrary notwithstanding, no Default or
      Event
      of Default will be caused by such change in GAAP for a period of 90 days
      following the event which would otherwise be treated as a Default or Event
      of
      Default and the Company shall have 90 days from and after the date of the
      occurrence of such event within which to enter into an amendment with the
      Required Holders and the holders and the Company shall undertake in good faith
      to amend any affected provisions of this Agreement so as to preserve the intent
      and purpose thereof and to accommodate such change in GAAP and to enter into
      an
      amendment hereof to reflect the same, such amendment to be in form and substance
      satisfactory to the Company and the Required Holders.

     

    Section
      22.7.  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
      22.8.  Governing Law.  This Agreement and the Notes
      shall be construed and enforced in accordance with, and the rights of the
      parties shall be governed by, the law of the State of New York 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.

    *    *    *    *    *

     

    
      
        
        

        
        

      

      
        -
          35
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    If
      you
      are in agreement with the foregoing, please sign the form of agreement in the
      space below provided on a 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,

     

     

    
      	
               

            	
              The
                United Illuminating Company

            

    

     

    
      	
               

            	
              By    
                /s/ Susan E.
                Allen                                   

            

    

    
      	
               

            	
              Name:   Susan
                E. Allen

            

    

    
      	
               

            	
              Title:     
                Vice President Investor Relations,

            

    

    
      	
               

            	
               Treasurer
                and Assistant Secretary

            

    

    

    
      
        
        

        
        

      

      
        -
          36
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    The
      foregoing is hereby agreed to as of the date thereof.

    

    

    
      	
               

            	
              Allianz
                Life Insurance Company of North
                America

            

    

    

    
      	
               

            	
              By:
                Allianz of America, Inc., as the authorized signatory and investment
                manager

            

    

    

    

    

                                  By    /s/
      Gary
      Brown                     

    
      	
               

            	
              Name:  Gary
                Brown

            

    

    
      	
               

            	
              Title:  Assistant
                Treasurer

            

    

    

    
      
        
        

      

      
        -
          37
          -

        
          

        

      

      
        
        

      

    

     

    The
      foregoing is hereby agreed to as of the date thereof.

    

    
      	
               

            	
              American
                Equity Investment Life Insurance
                Company

            

    

    

    

    

    
      	
               

            	
              By    /s/
                Rachel
                Stauffer                     

            

    

    
      	
               

            	
              Name:  Rachel
                Stauffer

            

    

    
      	
               

            	
              Title:  Vice
                President Investments

            

    

    
      
        
        

      

      
        -
          38
          -

        
          

        

      

      
        
        

      

    

     

    The
      foregoing is hereby agreed to as of the date thereof.

    

    

    
      	
               

            	
              American
                Republic Insurance Company

            

    

    

    
      	
               

            	
              By:
                Advantus Capital Management, Inc.

            

    

    

    

    
      	
               

            	
              By     /s/
                Kathleen H.
                Parker                        

            

    

    
      	
               

            	
               Name:  Kathleen
                H. Parker

            

    

    
      	
               

            	
               Title:  Vice
                President

            

    

    

    

    
      	
               

            	
              Blue
                Cross and Blue Shield of Florida,
                Inc.

            

    

    

    
      	
               

            	
              By:
                Advantus Capital Management, Inc.

            

    

    

    

    
      	
               

            	
              By     /s/
                Kathleen H.
                Parker                        

            

    

    
      	
               

            	
               Name:  Kathleen
                H. Parker

            

    

    
      	
               

            	
               Title:  Vice
                President

            

    

    

    

    
      	
               

            	
              The
                Catholic Aid Association

            

    

    

    
      	
               

            	
              By:
                Advantus Capital Management, Inc.

            

    

    

    

    
      	
               

            	
              By   /s/
                Joseph
                Gogola                                

            

    

    
      	
               

            	
               Name:  Joseph
                Gogola

            

    

    
      	
               

            	
               Title:  Vice
                President

            

    

    

    

    
      	
               

            	
              Cincinnati
                Insurance Company

            

    

    

    
      	
               

            	
              By:
                Advantus Capital Management, Inc.

            

    

    

    

    
      	
               

            	
              By   /s/
                Joseph
                Gogola                                  

            

    

    
      	
               

            	
               Name:  Joseph
                Gogola

            

    

    
      	
               

            	
               Title:  Vice
                President

            

    

    

     

    
      
        
        

      

      
        -
          39
          -

        
          

        

      

      
        
        

      

    

     

    
      	
               

            	
              Colorado
                Bankers Life Insurance Company

            

    

    

    
      	
               

            	
              By:
                Advantus Capital Management, Inc.

            

    

    

    

    
      	
               

            	
              By  /s/
                Thomas B.
                Houghton                       

            

    

    
      	
               

            	
               Name:  Thomas
                B. Houghton

            

    

    
      	
               

            	
               Title:  Vice
                President

            

    

    

    

    
      	
               

            	
              Fort
                Dearborn Life Insurance Company

            

    

    

    
      	
               

            	
              By:
                Advantus Capital Management, Inc.

            

    

    

    

    

    
      	
               

            	
              By
                  /s/ Thomas B.
                Houghton                        

            

    

    
      	
               

            	
               Name:  Thomas
                B. Houghton

            

    

    
      	
               

            	
               Title:  Vice
                President

            

    

    

    

    
      	
               

            	
              Great
                Western Insurance Company

            

    

    

    
      	
               

            	
              By:
                Advantus Capital Management, Inc.

            

    

    

    

    

    
      	
               

            	
              By   /s/
                James W.
                Tobin                                

            

    

    
      	
               

            	
               Name:  James
                W. Tobin

            

    

    
      	
               

            	
               Title:  Vice
                President

            

    

    

    

    
      	
               

            	
              Security
                National Life Insurance Company

            

    

    

    
      	
               

            	
              By:  Advantus
                Capital Management, Inc.

            

    

    

    

    

    
      	
               

            	
              By   /s/
                Steven R.
                Lane                                

            

    

    
      	
               

            	
               Name:  Steven
                R. Lane

            

    

    
      	
               

            	
               Title:  Vice
                President

            

    

     

     

    
      
        
        

      

      
        -
          40
          -

        
          

        

      

      
        
        

      

    

     

    
      	
               

            	
              United
                Insurance Company of America

            

    

    

    
      	
               

            	
              By:  Advantus
                Capital Management, Inc.

            

    

    

    

    

    
      	
               

            	
              By   /s/
                Steven R.
                Lane                                

            

    

    
      	
               

            	
               Name:  Steven
                R. Lane

            

    

    
      	
               

            	
               Title:  Vice
                President

            

    

     

    
      
        
        

      

      
        -
          41
          -

        
          

        

      

      
        
        

      

    

     

    The
      foregoing is hereby agreed to as of the date thereof.

    

    

    
      	
               

            	
              Bankers
                Life and Casualty Company

            

    

    
      	
               

            	
              Conseco
                Life Insurance Company

            

    

    
      	
               

            	
              Conseco
                Senior Health Insurance Company

            

    

    
      	
               

            	
              Conseco
                Health Insurance Company

            

    

    

    
      	
               

            	
              By:
                40|86 Advisors, Inc., acting as Investment
                Advisor:

            

    

    

    

    

                             

    
      	 	By   /s/
              Timothy L. Powell                  

      	
               

            	
               
                Name: Timothy L. Powell

            

    

    
      	
               

            	
               
                Title: Vice President

            

    

     

     

    
      
        
        

      

      
        -
          42
          -

        
          

        

      

      
        
        

      

    

     

    The
      foregoing is hereby agreed to as of the date thereof.

     

    

     

    
      	
               

            	
              Connecticut
                General Life Insurance Company

            

    

     

    
      	
               

            	
              Life
                Insurance Company of North America

            

    

    

    
      	
               

            	
              By:
                CIGNA Investments, Inc., (authorized
                agent)

            

    

     

    

    

    

                               

    
      	 	 By   /s/
              Deborah B. Wiacek                     

      	
               

            	
              Name:  Deborah
                B. Wiacek

            

    

    
      	
               

            	
              Title:  Managing
                Director

            

    

    
      
        
        

      

      
        -
          43
          -

        
          

        

      

      
        
        

      

    

     

    The
      foregoing is hereby agreed to as of the date thereof.

    

    
      	
               

            	
              Genworth
                Life Insurance Company

            

    

    

    

    

                             

    
      	 	By   /s/
              Scott Sell                                  

      	
               

            	
              Name:  Scott
                Sell

            

    

    
      	
               

            	
              Title:  Investment
                Officer

            

    

    

    
      	
               

            	
              Genworth
                Life and Annuity Insurance Company

            

    

    

    

    

                              

    
      	 	By   /s/
              Scott Sell                                  

      	
               

            	
              Name:  Scott
                Sell

            

    

    
      	
               

            	
              Title:  Investment
                Officer

            

    

    
      
        
        

      

      
        -
          44
          -

        
          

        

      

      
        
        

      

    

     

    The
      foregoing is hereby agreed to as of the date thereof.

    

    

    
      	
               

            	
              PPM
                America, Inc., as Attorney in Fact,

            

    

    
      	
               

            	
              on
                behalf of Jackson National Life Insurance
                Company

            

    

    

    

    

                              

    
      	 	By   /s/
              Mark Staub                           

      	
               

            	
              Name:  Mark
                Staub

            

    

    
      	
               

            	
              Title:  Vice
                President

            

    

    
      
        
        

      

      
        -
          45
          -

        
          

        

      

      
        
        

      

    

     

    The
      foregoing is hereby agreed to as of the date thereof.

    

    
      	
               

            	
              Life
                Insurance Company of the Southwest

            

    

    

    

    

    
      	
               

            	
              By  /s/
                R. Scott
                Higgins                            

            

    

    
      	
               

            	
              Name:  R.
                Scott Higgins

            

    

    
      	
               

            	
              Title:    Vice
                President

            

    

    
      	
               

            	
              Sentinel
                Asset Management

            

    

    
      
        
        

      

      
        -
          46
          -

        
          

        

      

      
        
        

      

    

     

    The
      foregoing is hereby agreed to as of the date thereof.

    

    
      	
               

            	
              Homesteaders
                Life Company

            

    

    

    

    

    
      	
               

            	
              By   /s/
                Glen R.
                Hare                          

            

    

    
      	
               

            	
              Name:  Glen
                R. Hare

            

    

    
      	
               

            	
              Title:     Executive
                Vice President

            

    

    
      	
               

            	
              Treasurer
                and CFO

            

    

    
      
        
        

      

      
        -
          47
          -

        
          

        

      

      
        
        

      

    

     

    The
      foregoing is hereby agreed to as of the date thereof.

    

    
      	
               

            	
              Metropolitan
                Life Insurance Company

            

    

    

    

    

                                  

    
      	 	By
  /s/
              Judith A. Gulotta                               

      	
               

            	
              Name:  Judith
                A. Gulotta

            

    

    
      	
               

            	
              Title:  Director

            

    

    

    

    

    
      	
               

            	
              MetLife
                Insurance Company of Connecticut

            

    

    

    
      	
               

            	
              By:
                Metropolitan Life Insurance Company, its investment
                manager

            

    

    

    

                              

    
      	 	 By   /s/
              Judith A. Gulotta                            

      	
               

            	
              Name:  Judith
                A. Gulotta

            

    

    
      	
               

            	
              Title:  Director

            

    

    

     

    
      
        
        

      

      
        -
          48
          -

        
          

        

      

      
        
        

      

    

    The
      foregoing is hereby agreed to as of the date thereof.

    

    
      	
               

            	
              New
                York Life Insurance Company

            

    

    

    

    

    
      	
               

            	
              By   /s/
                Stuart
                Ashton                                    

            

    

    
      	
               

            	
              Name:  Stuart
                Ashton

            

    

    
      	
               

            	
              Title:  Corporate
                Vice President

            

    

    

    

    
      	
               

            	
              New
                York Life Insurance and Annuity
                Corporation

            

    

    

    
      	
               

            	
              By
                New York Life Investment Management LLC, its Investment
                Manager

            

    

    

    

    

    
      	
               

            	
              By   /s/
                Stuart
                Ashton                               

            

    

    
      	
               

            	
              Name:  Stuart
                Ashton

            

    

    
      	
               

            	
              Title:  Director

            

    

    

    

    
      	
               

            	
              New
                York Life Insurance and Annuity Corporation, Institutionally Owned
                Life
                Insurance 

              Separate
                Account

            

    

    

    
      	
               

            	
              By
                New York Life Investment Management LLC, its Investment
                Manager

            

    

    

    

    

    
      	
               

            	
              By   /s/
                Stuart
                Ashton                             

            

    

    
      	
               

            	
              Name:  Stuart
                Ashton

            

    

    
      	
               

            	
              Title:  Director

            

    

    
      
        
        

      

      
        -
          49
          -

        
          

        

      

      
        
        

      

    

     

    The
      foregoing is hereby agreed to as of the date thereof.

    

    

    
      	
               

            	
              Thrivent
                Financial for Lutherans

            

    

    

    

    

    
      	
               

            	
              By  /s/
                Alan D.
                Onstad                                

            

    

    
      	
               

            	
              Name:  Alan
                D. Onstad

            

    

    
      	
               

            	
              Title:  Associate
                Portfolio Manager

            

    

    

    
      
        
        

      

      
        -
          50
          -

        
          

        

      

      
        
        

      

    

    

    The
      foregoing is hereby agreed to as of the date thereof.

    

    
      	
               

            	
              UNUM
                Life Insurance Company of America

            

    

    

    
      	
               

            	
              By:
                Provident Investment Management, LLC, its
                Agent

            

    

    

    

    

                              

    
      	 	 By   /s/
              Ben Vance                                 

      	
               

            	
              Name:  Ben
                Vance

            

    

    
      	
               

            	
              Title:    Vice
                President

            

    

    

    

    

    
      	
               

            	
              Provident
                Life and Accident Insurance Company

            

    

    

    
      	
               

            	
              By:
                Provident Investment Management, LLC, its
                Agent

            

    

    

    

    

                              

    
      	 	By   /s/
              Ben Vance                                 

      	
               

            	
              Name:  Ben
                Vance

            

    

    
      	
               

            	
              Title:    Vice
                President

            

    

    

    
      
        
        

      

      
        -
          51
          -

        
          

        

      

      
        
        

      

    

    The
      foregoing is hereby agreed to as of the date thereof.

    

    

    
      	
               

            	
              The
                State Life Insurance Company

            

    

    

    
      	
               

            	
              By:
                American United Life Insurance

            

    

    
      	
               

            	
                  Company,
                its Agent

            

    

    

    

                              

    
      	 	By
  /s/
              Kent
              R. Adams                           

      	
               

            	
              Name:  Kent
                R. Adams

            

    

    
      	
               

            	
              Title:    V.P.
                Fixed Income Securities

            

    

    
      
        
        

      

      
        -
          52
          -

        
          

        

      

      
        
        

      

    

     

    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:  V.P.
                Fixed Income Securities

            

    

    
      
        
        

      

      
        -
          53
          -

        
          

        

      

      
        
        

      

    

    The
      foregoing is hereby agreed to as of the date thereof.

    

    

    
      	
               

            	
              Pioneer
                Mutual Life Insurance Company

            

    

    

    
      	
               

            	
              By:
                American United Life Insurance

            

    

    
      	
               

            	
                  Company,
                its Agent

            

    

    

    

                             

    
      	 	By
  /s/
              Kent
              R. Adams                               

      	
               

            	
              Name:  Kent
                R. Adams

            

    

    
      	
               

            	
              Title:    V.P.
                Fixed Income Securities

            

    

    
      
        
        

      

      
        -
          54
          -

        
          

        

      

      
        
        

      

    

     

    The
      foregoing is hereby agreed to as of the date thereof.

    

    

    
      	
               

            	
              State
                Farm Life and Accident Assurance
                Company

            

    

    

    

    

    
      	
               

            	
              By  /s/Julie
                Pierce                             

            

    

    
      	
               

            	
              Julie
                Pierce

            

    

    
      	
               

            	
              Senior
                Investment Officer

            

    

    

    
      	
               

            	
              By  /s/Jeffrey
                T.
                Attwood                 

            

    

    
      	
               

            	
              Jeffrey
                T. Attwood

            

    

    
      	
               

            	
              Investment
                Officer

            

    

    
      
        
        

      

      
        -
          55
          -

        
          

        

      

      
        
        

      

    

     

    The
      foregoing is hereby agreed to as of the date thereof.

    

    

    
      	
               

            	
              State
                Farm Life Insurance Company

            

    

    

    

    

    
      	
               

            	
              By  /s/Julie
                Pierce                             

            

    

    
      	
               

            	
              Julie
                Pierce

            

    

    
      	
               

            	
              Senior
                Investment Officer

            

    

    

    
      	
               

            	
              By  /s/Jeffrey
                T.
                Attwood                 

            

    

    
      	
               

            	
              Jeffrey
                T. Attwood

            

    

    
      	
               

            	
              Investment
                Officer

            

    

    
      
        
        

      

      
        -
          56
          -

        
          

        

      

      
        
        

      

    

    
      	
              The
                foregoing is hereby agreed to as of the date
                thereof.

            

    

    

    

    
      	
               

            	
              Lafayette
                Life Insurance Company

            

    

    

    
      	
               

            	
              By: American
                United Life Insurance

            

    

    
      	
               

            	
                  Company,
                its Agent

            

    

    

    

                             

    
      	 	By
  /s/
              Kent
              R. Adams                              

      	
               

            	
              Name:  Kent
                R. Adams

            

    

    
      	
               

            	
              Title:    V.P.
                Fixed Income Securities

            

    

    
      
        
        

      

      
        -
          57
          -

        
          

        

      

      
        
        

      

    

    The
      foregoing is hereby agreed to as of the date thereof.

    

    

    
      	
               

            	
              Farm
                Bureau Life Insurance Company of
                Michigan

            

    

    

    
      	
               

            	
              By:
                American United Life Insurance

            

    

    
      	
               

            	
                  Company,
                its Agent

            

    

    

    

                             

    
      	 	By
  /s/
              Kent
              R. Adams                              

      	
               

            	
              Name:  Kent
                R. Adams

            

    

    
      	
               

            	
              Title:    V.P.
                Fixed Income Securities

            

    

    

     

    
      
        
        

      

      
        -
          58
          -

        
          

        

      

      
        
        

      

    

     

    Defined
      Terms

     

    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 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.

     

    “Attributable
      Debt” means, as to any particular lease relating to a Sale and Leaseback
      Transaction, the total amount of rent (discounted semiannually from the
      respective due dates thereof at the interest rate implicit in such lease)
      required to be paid by the lessee under such lease during the remaining term
      thereof.  The amount of rent required to be paid under any such lease
      for any such period shall be (a) the total amount of the rent payable by the
      lessee with respect to such period after excluding amounts required to be paid
      on account of maintenance and repairs, insurance, taxes, assessments, utilities,
      operating and labor costs and similar charges plus (b) without duplication,
      any
      guaranteed residual value in respect of such lease to the extent such guarantee
      would be included in indebtedness in accordance with GAAP.

     

    “Business
      Day” means any day other than a Saturday, a Sunday or a day on which
      commercial banks in New York City 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.

     

    “Capitalized
      Lease Obligations” means with respect to any Person, all outstanding
      obligations of such Person in respect of Capital Leases, taken at the
      capitalized amount thereof accounted for as indebtedness in accordance with
      GAAP.

     

    “Closing”
      and “Closings” are defined in Section 3.

     

    “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.

     

    
      
        
        

      

      
        Schedule
          B

        
          

        

      

      
        
        

      

    

    “Company”
      means The United Illuminating Company, a Connecticut corporation.

     

    “Confidential
      Information” is defined in Section 20.

     

    “Consolidated
      Capitalization” means, at any date, the sum of (a) Consolidated
      Indebtedness plus (b) shareholders’ equity of all classes of stock (except
      mandatorily redeemable Preferred Stock) of the Company and its Subsidiaries,
      all
      as determined on a consolidated basis in accordance with GAAP.

     

    “Consolidated
      Indebtedness” means, at any date, all Indebtedness of the Company and its
      Subsidiaries determined on a consolidated basis in accordance with
      GAAP.

     

    “Consolidated
      Total Assets” means, as of any date, the total assets of the Company and
      its Subsidiaries determined on a consolidated basis in accordance with
      GAAP.

     

    “Default”
      means an event or condition the occurrence or existence of which would, with
      the
      giving of notice or the lapse of time, or both, become an Event of
      Default.

     

    “Default
      Rate” means, with respect to a series of Notes, that rate of interest that
      is the greater of (i) 2% per annum above the stated interest rate for the Notes
      of such series and (ii) 2% above the rate of interest publicly announced by
      Citibank, N.A. from time to time at its principal office in New York City as
      its
      prime or base rate. 

     

    “Disposition”
      is defined in Section 10.5.

     

    “Environmental
      Laws” means, with respect to a series of Notes, any and all United States
      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 11.

     

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

     

    “GAAP”
      means generally accepted accounting principles as in effect from time to time
      in
      the United States of America.

     

    
      
        
        

      

      
        B-2

        
          

        

      

      
        
        

      

    

    “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 or in effect 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
      Materials” 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).

     

    
      
        
        

      

      
        B-3

        
          

        

      

      
        
        

      

    

    “holder”
      means, with respect to any Note, the Person in whose name such Note is
      registered in the register maintained by the Company pursuant to
      Section 13.1.

     

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

     

    (a) 
      its liabilities for borrowed money and its redemption obligations in respect
      of
      mandatorily redeemable Preferred Stock,

     

    (b) 
      its liabilities for the deferred purchase price of property acquired by such
      Person (excluding accounts payable arising in the ordinary course of business
      and not overdue but including all liabilities created or arising under any
      conditional sale or other title retention agreement with respect to any such
      property),

     

    (c) 
      its Capitalized Lease Obligations,

     

    (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),

     

    (e) 
      all its liabilities in respect of letters of credit or instruments serving
      a
      similar function issued or accepted for its account by banks and other financial
      institutions (whether or not representing obligations for borrowed
      money),

     

    (f) 
      Swaps of such Person not entered into for the purpose of hedging in the ordinary
      course of business, and

     

    (g) 
      any Guaranty of such Person with respect to liabilities of a type described
      in
      any of clauses (a) through (f) above.

     

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

     

    “Institutional
      Investor” means (a) any original purchaser of a Note, (b) any
      holder of a Note holding (together with one or more of its Affiliates) more
      than
      2% of the aggregate principal amount of the Notes then outstanding, and (c)
      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).

     

    
      
        
        

      

      
        B-4

        
          

        

      

      
        
        

      

    

    “Make-Whole
      Amount” is defined in Section 8.6.

     

    “Material”
      means material in relation to the business, operations, affairs, financial
      condition, assets, properties or prospects 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, (b) the ability of the Company to perform
      its obligations under this Agreement and the Notes or (c) the validity or
      enforceability of this Agreement or the Notes.

     

    “Memorandum”
      is defined in Section 5.3.

     

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

     

    “Net
      Proceeds Amount” means, with respect to any Disposition by any Person, an
      amount equal to the difference of

     

    (a) 
      the aggregate amount of cash received by such Person in respect of such
      Disposition at any time (including without limitation the payment of principal
      and interest on any promissory note issued to such Person as consideration
      for
      such Disposition or the cash proceeds received upon the disposition of non-cash
      consideration received for such Disposition), minus

     

    (b) 
      the sum of

     

    (i)
      all
      ordinary and reasonable out-of-pocket costs and expenses actually paid in cash
      by such Person in connection with such Disposition;

     

    (ii)
      all
      sales, transfer and income taxes attributable to such Disposition, it being
      understood that income taxes in respect of such Disposition (A) shall be
      determined on a consolidated basis for the Company and its Subsidiaries,
      (B) shall be calculated without regard to any credits, deductions,
      carryforwards or carrybacks (except to the extent that any such credits or
      deductions are attributable to such Disposition), and (C) shall be computed
      on
      the assumption that such Disposition was the only transaction in which the
      Company and its Subsidiaries engaged during the period in respect of which
      such
      income taxes are payable; and

     

    (iii)
      the
      principal amount of Indebtedness (and premium thereon, if any) secured by such
      asset that is required to be paid, and is paid, by such Person, as a condition
      to the consummation of such Disposition.

     

    “Notes”
      is defined in Section 1.

     

    
      
        
        

      

      
        B-5

        
          

        

      

      
        
        

      

    

    “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.

     

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

     

    “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.

     

    “Preferred
      Stock” means any class of capital stock of a corporation that is preferred
      over any other class of capital stock of such corporation as to the payment
      of
      dividends or the payment of any amount upon liquidation or dissolution of such
      corporation.

     

    “Priority
      Debt” is defined in Section 10.3.

     

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

     

    “PTE”
      is defined in Section 6.2.

     

    “QPAM
      Exemption” means Prohibited Transaction Class Exemption 84-14 issued
      on March 13, 1984 by the United States Department of Labor.

     

    “Required
      Holders” means, at any time, the holder or holders of at least 51% in
      unpaid principal amount of the Notes at the time outstanding (exclusive of
      Notes
      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.

     

    “Sale
      and Leaseback Transaction” is defined in Section 10.4.

     

    “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.

     

    “Series A
      Notes” is defined in Section 1.

     

    
      
        
        

      

      
        B-6

        
          

        

      

      
        
        

      

    

    “Series B
      Notes” is defined in Section 1.

     

    “Series C
      Notes” is defined in Section 1.

     

    “Series
      D Notes” is defined in Section 1.

     

    “Series
      E Notes” is defined in Section 1.

     

    “Series
      F Notes” is defined in Section 1.

     

    “Significant
      Subsidiary” means, at any date, any Subsidiary that accounts for more than
      5% of the consolidated assets of the Company and its Subsidiaries on such date
      or accounted for more than 5% of the consolidated revenue of the Company and
      its
      Subsidiaries for the fiscal year ending on or immediately prior to such
      date.

     

    “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, 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.

     

    “Swaps”
      means, with respect to any Person, payment obligations with respect to interest
      rate swaps, currency swaps and similar obligations obligating such Person to
      make payments, whether periodically or upon the happening of a
      contingency.  For the purposes of this Agreement, the amount of the
      obligation under any Swap shall be the amount determined in respect thereof
      as
      of the end of the then most recently ended fiscal quarter of such Person, based
      on the assumption that such Swap had terminated at the end of such fiscal
      quarter, and in making such determination, if any agreement relating to such
      Swap provides for the netting of amounts payable by and to such Person
      thereunder or if any such agreement provides for the simultaneous payment of
      amounts by and to such Person, then in each such case, the amount of such
      obligation shall be the net amount so determined.

     

    “UIL
      Holdings” means UIL Holdings Corporation, a Connecticut
      corporation.

     

    “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.

     

    “Voting
      Stock” means, with respect to any Person, any shares of stock or other
      equity interests of any class or classes of such Person whose holders are
      entitled under ordinary 

     

    
      
        
        

      

      
        B-7

        
          

        

      

      
        
        

      

       

      circumstances
        (irrespective of whether at the time stock or other equity interests of any
        other class or classes shall have or might have voting power by reason of
        the
        happening of any contingency) to vote for the election of a majority of the
        directors, managers, trustees or other governing body of such
        Person.

    

     

    “Wholly-Owned
      Subsidiary” means, at any time, any Subsidiary all of the equity interests
      (except directors’ qualifying shares) and voting interests of which are owned by
      any one or more of the Company and the Company’s other Wholly-Owned Subsidiaries
      at such time.

     

    
      
        
        

      

      
        B-8

        
          

        

      

      
        
        

      

    

     

    
      [Form
        of Note]

      

      The
        United Illuminating Company

       

      6.06%
        Senior Note, Series A, due September 5, 2017

       

      
        	
                 

              	
                No.
                  R-[_____]                                                                                      New
                  York, New
                  York

              

      

      
        	
                 

              	
                $[_______]                                                                                        [Date]

              

      

      
        	
                 

              	
                PPN:
910637
                  N*4

              

      

       

      For
        Value
        Received, the undersigned, The United Illuminating Company (the
“Company”), a Connecticut corporation, hereby promises to pay to
        _____________________, or registered assigns, the principal sum of
        ___________________ Dollars ($_________) on September 5, 2017, with
        interest (computed on the basis of a 360-day year of twelve 30-day months)
        (a)
        from the date hereof on the unpaid balance thereof at the rate of 6.06% per
        annum, payable semiannually on March 5 and September 5 in each year, commencing
        with the March 5 or September 5, and (b) on any overdue payment
        of principal, any overdue payment of interest and any overdue payment of
        any
        premium or Make-Whole Amount (as defined in the Note Purchase Agreement referred
        to below), payable semiannually as aforesaid (or, at the option of the
        registered holder hereof, on demand) at a rate per annum from time to time
        equal
        to the greater of (i) 8.06% and (ii) 2% above the rate of interest publicly
        announced by Citibank, N.A. from time to time at its principal office in
        New
        York, New York as its prime or base rate.

       

      Payments
        of principal of, interest on and any Make-Whole Amount with respect to this
        Note
        are to be made in lawful money of the United States of America at said principal
        office of Citibank, N.A. in New York, New York or at such other place as
        the
        Company shall have designated by written notice to the holder of this Note
        as
        provided in the Note Purchase Agreement referred to below.

       

      This
        Note
        is one of the 6.06% Senior Notes due September 5, 2017 issued pursuant to a
        Note Purchase Agreement dated as of September 5, 2007 (as from time to time
        amended, the “Note Purchase Agreement”) between the Company and the
        several Purchasers named therein and is entitled to the benefits
        thereof.  Each holder of this Note will be deemed, by its acceptance
        hereof, (i) to have agreed to the confidentiality provisions set forth in
        Section 20 of the Note Purchase Agreement and (ii) to have made the
        representations set forth in Section 6 of the Note Purchase
        Agreement.

       

      This
        Note
        is a registered Note and, as provided in the Note Purchase Agreement, upon
        surrender of this Note for registration of transfer accompanied by a written
        instrument of transfer duly executed by the registered holder hereof or such
        holder’s attorney duly authorized in writing, a new Note for a like principal
        amount will be issued to, and registered in the name of, the
        transferee.  Prior to due presentment for registration of transfer,
        the Company may treat the person in whose name this Note is registered as
        the
        owner hereof for the purpose of receiving payment and for all other purposes,
        and the Company will not be affected by any notice to the contrary.

       

      
        
          
          

        

        
          Exhibit
            1-A 

          
            

          

        

        
          
          

        

      

       

      This
        Note
        is subject to optional prepayments of principal in whole or from time to
        time in
        part, at the times and on the terms specified in the Note Purchase Agreement,
        but not otherwise.

       

      If
        an
        Event of Default, as defined in the Note Purchase Agreement, occurs and is
        continuing, the principal of this Note may be declared or otherwise become
        due
        and payable in the manner, at the price (including any applicable premium
        or
        Make-Whole Amount) and with the effect provided in the Note Purchase
        Agreement.

       

      This
        Note
        shall be construed and enforced in accordance with, and the rights of the
        holder
        hereof shall be governed by, the laws of the State of New York, 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.

       

      
        	
                 

              	
                The
                  United Illuminating Company

              

      

       

      
        	
                 

              	
                By
                  ________________________________

              

      

      
        	
                 

              	
                Title:

              

      

      
        
          
          

          1-A-2

        

        
          
          

          
            

          

        

        
          
          

        

      

      [Form
        of Note]

      

      The
        United Illuminating Company

       

      6.06%
        Senior Note, Series B, due December 6, 2017

       

      
        	
                 

              	
                No.
                  R-[_____]                                                                                 New
                  York, New
                  York

              

      

      
        	
                 

              	
                $[_______]                                                                                  [Date]

              

      

      
        	
                 

              	
                PPN:
910637
                  N@2

              

      

       

      For
        Value
        Received, the undersigned, The United Illuminating Company (the
“Company”), a Connecticut corporation, hereby promises to pay to
        _____________________, or registered assigns, the principal sum of
        ___________________ Dollars ($_________) on December 6, 2017, with interest
        (computed on the basis of a 360-day year of twelve 30-day months) (a) from
        the
        date hereof on the unpaid balance thereof at the rate of 6.06% per annum,
        payable semiannually on June 6 and December 6 in each year, commencing with
        the
        June 6 or December 6 next succeeding the date hereof, until the principal
        hereof
        shall have become due and payable, and (b) on any overdue payment of
        principal, any overdue payment of interest and any overdue payment of any
        premium or Make-Whole Amount (as defined in the Note Purchase Agreement referred
        to below), payable semiannually as aforesaid (or, at the option of the
        registered holder hereof, on demand) at a rate per annum from time to time
        equal
        to the greater of (i) 8.06% and (ii) 2% above the rate of interest publicly
        announced by Citibank, N.A. from time to time at its principal office in
        New
        York, New York as its prime or base rate.

       

      Payments
        of principal of, interest on and any Make-Whole Amount with respect to this
        Note
        are to be made in lawful money of the United States of America at said principal
        office of Citibank, N.A. in New York, New York or at such other place as
        the
        Company shall have designated by written notice to the holder of this Note
        as
        provided in the Note Purchase Agreement referred to below.

       

      This
        Note
        is one of the 6.06% Senior Notes due December 6, 2017 issued pursuant to
        a Note
        Purchase Agreement dated as of September 5, 2007 (as from time to time
        amended, the “Note Purchase Agreement”) between the Company and the
        several Purchasers named therein and is entitled to the benefits
        thereof.  Each holder of this Note will be deemed, by its acceptance
        hereof, (i) to have agreed to the confidentiality provisions set forth in
        Section 20 of the Note Purchase Agreement and (ii) to have made the
        representations set forth in Section 6 of the Note Purchase
        Agreement.

       

      This
        Note
        is a registered Note and, as provided in the Note Purchase Agreement, upon
        surrender of this Note for registration of transfer accompanied by a written
        instrument of transfer duly executed by the registered holder hereof or such
        holder’s attorney duly authorized in writing, a new Note for a like principal
        amount will be issued to, and registered in the name of, the
        transferee.  Prior to due presentment for registration of transfer,
        the Company may treat the person in whose name this Note is registered as
        the
        owner hereof for the purpose of receiving 

       

      
        
          
          

        

        
           Exhibit
            1-B

          
            

          

        

        
          
          

        

         

        payment
          and for all other purposes, and the Company will not be affected by any
          notice
          to the contrary.

      

       

      This
        Note
        is subject to optional prepayments of principal in whole or from time to
        time in
        part, at the times and on the terms specified in the Note Purchase Agreement,
        but not otherwise.

       

      If
        an
        Event of Default, as defined in the Note Purchase Agreement, occurs and is
        continuing, the principal of this Note may be declared or otherwise become
        due
        and payable in the manner, at the price (including any applicable premium
        or
        Make-Whole Amount) and with the effect provided in the Note Purchase
        Agreement.

       

      This
        Note
        shall be construed and enforced in accordance with, and the rights of the
        holder
        hereof shall be governed by, the laws of the State of New York, 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.

       

      
        	
                 

              	
                The
                  United Illuminating Company

              

      

       

      
        	
                 

              	
                By_____________________________

              

      

      
        	
                 

              	
                Title:

              

      

      

      
        
          
          

          1-B-2

        

        
          
          

          
            

          

        

        
          
          

        

      

      [Form
        of Note]

      

      The
        United Illuminating Company

       

      6.26%
        Senior Note, Series C, due September 5, 2022

       

      
        	
                 

              	
                No.
                  R-[_____]                                                                                New
                  York, New
                  York

              

      

      
        	
                 

              	
                $[_______]                                                                                  [Date]

              

      

      
        	
                 

              	
                PPN:
910637
                  N#0

              

      

       

       

      For
        Value
        Received, the undersigned, The United Illuminating Company (the
“Company”), a Connecticut corporation, hereby promises to pay to
        _____________________, or registered assigns, the principal sum of
        ___________________ Dollars ($_________) on September 5, 2022, with interest
        (computed on the basis of a 360-day year of twelve 30-day months) (a) from
        the
        date hereof on the unpaid balance thereof at the rate of 6.26% per annum,
        payable semiannually on March 5 and September 5 in each year, commencing
        with
        the March 5 or September 5 next succeeding the date hereof, until the
        principal hereof shall have become due and payable, and (b) on any overdue
        payment of principal, any overdue payment of interest and any overdue payment
        of
        any premium or Make-Whole Amount (as defined in the Note Purchase Agreement
        referred to below), payable semiannually as aforesaid (or, at the option
        of the
        registered holder hereof, on demand) at a rate per annum from time to time
        equal
        to the greater of (i) 8.26% and (ii) 2% above the rate of interest
        publicly announced by Citibank, N.A. from time to time at its principal office
        in New York, New York as its prime or base rate.

       

      Payments
        of principal of, interest on and any Make-Whole Amount with respect to this
        Note
        are to be made in lawful money of the United States of America at said principal
        office of Citibank, N.A. in New York, New York or at such other place as
        the
        Company shall have designated by written notice to the holder of this Note
        as
        provided in the Note Purchase Agreement referred to below.

       

      This
        Note
        is one of the 6.26% Senior Notes due September 5, 2022 issued pursuant to a
        Note Purchase Agreement dated as of September 5, 2007 (as from time to time
        amended, the “Note Purchase Agreement”) between the Company and the
        several Purchasers named therein and is entitled to the benefits
        thereof.  Each holder of this Note will be deemed, by its acceptance
        hereof, (i) to have agreed to the confidentiality provisions set forth in
        Section 20 of the Note Purchase Agreement and (ii) to have made the
        representations set forth in Section 6 of the Note Purchase
        Agreement.

       

      This
        Note
        is a registered Note and, as provided in the Note Purchase Agreement, upon
        surrender of this Note for registration of transfer accompanied by a written
        instrument of transfer duly executed by the registered holder hereof or such
        holder’s attorney duly authorized in writing, a new Note for a like principal
        amount will be issued to, and registered in the name of, the
        transferee.  Prior to due presentment for registration of transfer,
        the Company may treat the person in whose name this Note is registered as
        the
        owner hereof for the purpose of receiving 

       

      
        
          
          

        

        
          Exhibit
            1-C  

          
            

          

        

        
          
          

        

      

       

      payment
        and for all other purposes, and the Company will not be affected by any notice
        to the contrary.

       

      This
        Note
        is subject to optional prepayments of principal in whole or from time to
        time in
        part, at the times and on the terms specified in the Note Purchase Agreement,
        but not otherwise.

       

      If
        an
        Event of Default, as defined in the Note Purchase Agreement, occurs and is
        continuing, the principal of this Note may be declared or otherwise become
        due
        and payable in the manner, at the price (including any applicable premium
        or
        Make-Whole Amount) and with the effect provided in the Note Purchase
        Agreement.

       

      This
        Note
        shall be construed and enforced in accordance with, and the rights of the
        holder
        hereof shall be governed by, the laws of the State of New York, 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.

       

      
        	
                 

              	
                The
                  United Illuminating Company

              

      

       

      
        	
                 

              	
                By______________________________

              

      

      
        	
                 

              	
                ß
                  Title:

              

      

      
        
                

                         
    

          
          

        

        
          1-C-2

          
            

          

        

        
          
          

        

      

      [Form
        of Note]

      

      The
        United Illuminating Company

       

      6.26%
        Senior Note, Series D, due December 6, 2022

       

      
        	
                 

              	
                No.
                  R-[_____]                                                                        New
                  York, New
                  York

              

      

      
        	
                 

              	
                $[_______]                                                                          [Date]

              

      

      
        	
                 

              	
                PPN:
910637
                  P*2

              

      

       

       

      For
        Value
        Received, the undersigned, The United Illuminating Company (the
“Company”), a Connecticut corporation, hereby promises to pay to
        _____________________, or registered assigns, the principal sum of
        ___________________ Dollars ($_________) on December 6, 2022, with interest
        (computed on the basis of a 360-day year of twelve 30-day months) (a) from
        the
        date hereof on the unpaid balance thereof at the rate of 6.26% per annum,
        payable semiannually on June 6 and December 6 in each year, commencing with
        the
        June 6 or December 6 next succeeding the date hereof, until the
        principal hereof shall have become due and payable, and (b) on any overdue
        payment of principal, any overdue payment of interest and any overdue payment
        of
        any premium or Make-Whole Amount (as defined in the Note Purchase Agreement
        referred to below), payable semiannually as aforesaid (or, at the option
        of the
        registered holder hereof, on demand) at a rate per annum from time to time
        equal
        to the greater of (i) 8.26% and (ii) 2% above the rate of interest
        publicly announced by Citibank, N.A. from time to time at its principal office
        in New York, New York as its prime or base rate.

       

      Payments
        of principal of, interest on and any Make-Whole Amount with respect to this
        Note
        are to be made in lawful money of the United States of America at said principal
        office of Citibank, N.A. in New York, New York or at such other place as
        the
        Company shall have designated by written notice to the holder of this Note
        as
        provided in the Note Purchase Agreement referred to below.

       

      This
        Note
        is one of the 6.26% Senior Notes due December 6, 2022 issued pursuant to
        a Note
        Purchase Agreement dated as of September 5, 2007 (as from time to time
        amended, the “Note Purchase Agreement”) between the Company and the
        several Purchasers named therein and is entitled to the benefits
        thereof.  Each holder of this Note will be deemed, by its acceptance
        hereof, (i) to have agreed to the confidentiality provisions set forth in
        Section 20 of the Note Purchase Agreement and (ii) to have made the
        representations set forth in Section 6 of the Note Purchase
        Agreement.

       

      This
        Note
        is a registered Note and, as provided in the Note Purchase Agreement, upon
        surrender of this Note for registration of transfer accompanied by a written
        instrument of transfer duly executed by the registered holder hereof or such
        holder’s attorney duly authorized in writing, a new Note for a like principal
        amount will be issued to, and registered in the name of, the
        transferee.  Prior to due presentment for registration of transfer,
        the Company may treat the person in whose name this Note is registered as
        the
        owner hereof for the purpose of receiving 

       

      
        
          
          

        

        
           Exhibit
            1-D 

          
            

          

        

        
          
          

        

      

       

      payment
        and for all other purposes, and the Company will not be affected by any notice
        to the contrary.

       

      This
        Note
        is subject to optional prepayments of principal in whole or from time to
        time in
        part, at the times and on the terms specified in the Note Purchase Agreement,
        but not otherwise.

       

      If
        an
        Event of Default, as defined in the Note Purchase Agreement, occurs and is
        continuing, the principal of this Note may be declared or otherwise become
        due
        and payable in the manner, at the price (including any applicable premium
        or
        Make-Whole Amount) and with the effect provided in the Note Purchase
        Agreement.

       

      This
        Note
        shall be construed and enforced in accordance with, and the rights of the
        holder
        hereof shall be governed by, the laws of the State of New York, 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.

       

      
        	
                 

              	
                The
                  United Illuminating Company

              

      

       

      
        	
                 

              	
                By_____________________________

              

      

      
        	
                 

              	
                Title:

              

      

      

      
        
            

          1-D-2

        

        
          
          

          
            

          

        

        
          
          

        

      

      [Form
        of Note]

      

      The
        United Illuminating Company

       

      6.51%
        Senior Note, Series E, due September 5, 2037

       

      
        	
                 

              	
                No.
                  R-[_____]                                                                            New
                  York, New
                  York

              

      

      
        	
                 

              	
                $[_______]                                                                             
                  [Date]

              

      

      
        	
                 

              	
                PPN:
910637
                  P@0

              

      

       

       

      For
        Value
        Received, the undersigned, The United Illuminating Company (the
“Company”), a Connecticut corporation, hereby promises to pay to
        _____________________, or registered assigns, the principal sum of
        ___________________ Dollars ($_________) on September 5, 2037, with interest
        (computed on the basis of a 360-day year of twelve 30-day months) (a) from
        the
        date hereof on the unpaid balance thereof at the rate of 6.51% per annum,
        payable semiannually on March 5 and September 5 in each year, commencing
        with
        the March 5 or September 5 next succeeding the date hereof, until the
        principal hereof shall have become due and payable, and (b) on any overdue
        payment of principal, any overdue payment of interest and any overdue payment
        of
        any premium or Make-Whole Amount (as defined in the Note Purchase Agreement
        referred to below), payable semiannually as aforesaid (or, at the option
        of the
        registered holder hereof, on demand) at a rate per annum from time to time
        equal
        to the greater of (i) 8.51% and (ii) 2% above the rate of interest
        publicly announced by Citibank, N.A. from time to time at its principal office
        in New York, New York as its prime or base rate.

       

      Payments
        of principal of, interest on and any Make-Whole Amount with respect to this
        Note
        are to be made in lawful money of the United States of America at said principal
        office of Citibank, N.A. in New York, New York or at such other place as
        the
        Company shall have designated by written notice to the holder of this Note
        as
        provided in the Note Purchase Agreement referred to below.

       

      This
        Note
        is one of the 6.51% Senior Notes due September 5, 2037 issued pursuant to a
        Note Purchase Agreement dated as of September 5, 2007 (as from time to time
        amended, the “Note Purchase Agreement”) between the Company and the
        several Purchasers named therein and is entitled to the benefits
        thereof.  Each holder of this Note will be deemed, by its acceptance
        hereof, (i) to have agreed to the confidentiality provisions set forth in
        Section 20 of the Note Purchase Agreement and (ii) to have made the
        representations set forth in Section 6 of the Note Purchase
        Agreement.

       

      This
        Note
        is a registered Note and, as provided in the Note Purchase Agreement, upon
        surrender of this Note for registration of transfer accompanied by a written
        instrument of transfer duly executed by the registered holder hereof or such
        holder’s attorney duly authorized in writing, a new Note for a like principal
        amount will be issued to, and registered in the name of, the
        transferee.  Prior to due presentment for registration of transfer,
        the Company may treat the person in whose name this Note is registered as
        the
        owner hereof for the purpose of receiving 

       

       

      
        
          
          

        

        
          Exhibit
            1-E  

          
            

          

        

        
          
          

        

      

       

      payment
        and for all other purposes, and the Company will not be affected by any notice
        to the contrary.

       

      This
        Note
        is subject to optional prepayments of principal in whole or from time to
        time in
        part, at the times and on the terms specified in the Note Purchase Agreement,
        but not otherwise.

       

      If
        an
        Event of Default, as defined in the Note Purchase Agreement, occurs and is
        continuing, the principal of this Note may be declared or otherwise become
        due
        and payable in the manner, at the price (including any applicable premium
        or
        Make-Whole Amount) and with the effect provided in the Note Purchase
        Agreement.

       

      This
        Note
        shall be construed and enforced in accordance with, and the rights of the
        holder
        hereof shall be governed by, the laws of the State of New York, 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.

       

      
        	
                 

              	
                The
                  United Illuminating Company

              

      

       

      
        	
                 

              	
                By_________________________________

              

      

      
        	
                 

              	
                Title:

              

      

      
        
          
          

          1-E-2

        

        
          
          

          
            

          

        

        
          
          

        

      

      [Form
        of Note]

      

      The
        United Illuminating Company

       

      6.51%
        Senior Note, Series F, due December 6, 2037

       

      
        	
                 

              	
                No.
                  R-[_____]                                                                              New
                  York, New
                  York

              

      

      
        	
                 

              	
                $[_______]                                                                                [Date]

              

      

      
        	
                 

              	
                PPN:
910637
                  P#8

              

      

       

       

      For
        Value
        Received, the undersigned, The United Illuminating Company (the
“Company”), a Connecticut corporation, hereby promises to pay to
        [_____________________], or registered assigns, the principal sum of
        [___________________] Dollars ($_________) on December 6, 2037, with interest
        (computed on the basis of a 360-day year of twelve 30-day months) (a) from
        the
        date hereof on the unpaid balance thereof at the rate of 6.51% per annum,
        payable semiannually on June 6 and December 6 in each year, commencing with
        the
        June 6 or December 6 next succeeding the date hereof, until the
        principal hereof shall have become due and payable, and (b) on any overdue
        payment of principal, any overdue payment of interest and any overdue payment
        of
        any premium or Make-Whole Amount (as defined in the Note Purchase Agreement
        referred to below), payable semiannually as aforesaid (or, at the option
        of the
        registered holder hereof, on demand) at a rate per annum from time to time
        equal
        to the greater of (i) 8.51% and (ii) 2% above the rate of interest
        publicly announced by Citibank, N.A. from time to time at its principal office
        in New York, New York as its prime or base rate.

       

      Payments
        of principal of, interest on and any Make-Whole Amount with respect to this
        Note
        are to be made in lawful money of the United States of America at said principal
        office of Citibank, N.A. in New York, New York or at such other place as
        the
        Company shall have designated by written notice to the holder of this Note
        as
        provided in the Note Purchase Agreement referred to below.

       

      This
        Note
        is one of the 6.51% Senior Notes due December 6, 2037 issued pursuant to a
        Note Purchase Agreement dated as of September 5, 2007 (as from time to time
        amended, the “Note Purchase Agreement”) between the Company and the
        several Purchasers named therein and is entitled to the benefits
        thereof.  Each holder of this Note will be deemed, by its acceptance
        hereof, (i) to have agreed to the confidentiality provisions set forth in
        Section 20 of the Note Purchase Agreement and (ii) to have made the
        representations set forth in Section 6 of the Note Purchase
        Agreement.

       

      This
        Note
        is a registered Note and, as provided in the Note Purchase Agreement, upon
        surrender of this Note for registration of transfer accompanied by a written
        instrument of transfer duly executed by the registered holder hereof or such
        holder’s attorney duly authorized in writing, a new Note for a like principal
        amount will be issued to, and registered in the name of, the
        transferee.  Prior to due presentment for registration of transfer,
        the Company may treat the person in whose name this Note is registered as
        the
        owner hereof for the purpose of receiving 

       

      
        
          
          

        

        
          Exhibit
            1-F 

          
            

          

        

        
          
          

        

      

       

      payment
        and for all other purposes, and the Company will not be affected by any notice
        to the contrary.

       

      This
        Note
        is subject to optional prepayments of principal in whole or from time to
        time in
        part, at the times and on the terms specified in the Note Purchase Agreement,
        but not otherwise.

       

      If
        an
        Event of Default, as defined in the Note Purchase Agreement, occurs and is
        continuing, the principal of this Note may be declared or otherwise become
        due
        and payable in the manner, at the price (including any applicable premium
        or
        Make-Whole Amount) and with the effect provided in the Note Purchase
        Agreement.

       

      This
        Note
        shall be construed and enforced in accordance with, and the rights of the
        holder
        hereof shall be governed by, the laws of the State of New York, 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.

       

      
        	
                 

              	
                The
                  United Illuminating Company

              

      

       

      
        	
                 

              	
                By______________________________

              

      

      
        	
                 

              	
                Title:

              

      

       

       

      
        
          
          

          1-F-2

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