Document:

Exhibit 4.6

Company Order

June 14, 2006

The Bank of New York
Trust Company, N.A.

911 Washington Avenue, Suite 300

St. Louis, Missouri 63101

Ladies and Gentlemen:

Application
is hereby made to The Bank of New York Trust Company, N.A., a national banking
association, as trustee (the “Trustee”), under the Indenture dated as of June 1,
2006 (the “Indenture”), between Central Illinois Light Company, an Illinois
corporation (the “Company”), and the Trustee for the authentication and
delivery of $54,000,000 aggregate principal amount of the Company’s 6.20%
Senior Secured Notes due 2016 (the “Senior Notes Series 2016”) and
$42,000,000 aggregate principal amount of the Company’s 6.70% Senior Secured
Notes due 2036 (the “Senior Notes Series 2036”, and together with the
Senior Notes Series 2016, the “Notes”), pursuant to the provisions of Article II
of the Indenture. On or after the Release Date, the Company, in its discretion,
may change the descriptive title of the Notes to delete the word “Secured” from
such descriptive title. Additional Notes without limitation as to amount, and
without the consent of the holders of the then Outstanding Notes, may also be
authenticated and delivered in the manner provided in Section 2.05 of the
Indenture. All capitalized terms not defined herein that are defined in the
Indenture shall have the same meaning as used in the Indenture.

The
Notes will be initially issued pursuant to Section 4(2) of the
Securities Act of 1933, as amended (the “Securities Act”), in the form of
Global Notes registered in the name of Cede & Co. (as nominee for The
Depository Trust Company (“DTC”), New York, New York, which will act as the
Depositary for the Global Notes). Pursuant to Section 2.05(c) of the
Indenture, the Senior Notes Series 2016 will have the terms set forth in
the form of Global Note attached hereto as Exhibit A and in the form of
definitive Note attached hereto as Exhibit B (which terms are incorporated
by reference in this Company Order) and the Senior Notes Series 2036 will
have the terms set forth in the form of Global Note attached hereto as Exhibit C
and in the form of definitive Note attached hereto as Exhibit D (which
terms are incorporated by reference in this Company Order). The Global Notes
shall bear the depository legend in substantially the form set forth in
Exhibits A and C attached hereto. The Notes will be issued only in
denominations of $1,000 and in integral multiples of $1,000 in excess thereof.

Initially,
beneficial interests in the Senior Notes Series 2016 and the Senior Notes Series 2036
offered and sold to qualified institutional buyers (as defined in Rule 144A
under the Securities Act) (“QIBs”) in reliance upon Rule 144A under the
Securities Act will be represented by one or more separate Global Notes (each,
a “Rule 144A Global Certificate”) registered in the name of Cede &
Co., as registered owner and as nominee for DTC and shall include the non-registration
and registration rights legends set forth in Exhibits A and C attached
hereto, 

 

 

respectively, and
beneficial interests in the Senior Notes Series 2016 and the Senior Notes Series 2036
offered and sold to purchasers pursuant to Regulation S under the Securities
Act will be evidenced by one or more separate Global Notes (each, a “Regulation
S Global Certificate”) and will be registered in the name of Cede &
Co., as registered owner and as nominee for DTC for the accounts of The
Euroclear System (“Euroclear”) or Clearstream Banking, Luxembourg, société
anonyme (“Clearstream”) and shall include the Regulation S and registration
rights legends set forth in Exhibits A and C attached hereto, respectively.
Senior Notes Series 2016 and Senior Notes Series 2036 offered and
sold to institutional “accredited investors” (as defined in Rule 501(a)(1),
(2), (3) or (7) under the Securities Act) who are not QIBs and who
are not purchasers pursuant to Regulation S under the Securities Act will be in
definitive form in the forms attached hereto as Exhibits B and D,
respectively, and shall include the non-registration and registration
rights legends set forth therein. The Trustee and the Company will have no
responsibility or liability for any aspect of transfers of beneficial interests
in the Notes (which transfers will be conducted pursuant to the customary
procedures of DTC), any records of DTC of beneficial interests or any
transactions between DTC and its participants or between any such participants
and any other beneficial owners or for monitoring, supervising or reviewing of
any thereof.

Transfers
of beneficial interests in the Rule 144A Global Certificates will be
subject to the restrictions on transfer contained in the non-registration
legend set forth in Exhibits A and C hereto. Prior to the expiration of
the period of 40 consecutive days beginning on and including the later of (x) the
day on which the offering of the Notes commences and (y) the original
issue date of the Notes (the “Distribution Compliance Period”), transfers of
beneficial interests in the Regulation S Global Certificate will be
subject to the restrictions on transfer contained in the Regulation S
legend set forth in Exhibits A and C hereto. After the expiration of the
Distribution Compliance Period, transfers of beneficial interests in the
Regulation S Global Certificate will not be subject to any restrictions
and beneficial interests in the Regulation S Global Certificate may only be
held through Euroclear or Clearstream.

In
connection with any transfer of Notes, the Trustee and the Company shall be
under no duty to inquire into, may conclusively presume the correctness of, and
shall be fully protected in relying upon the certificates and other information
(set forth in the forms of definitive Senior Notes Series 2016 and Senior
Notes Series 2036 attached hereto as Exhibits B and D, respectively, for
use in connection with the transfer of the Notes in definitive form, or set
forth in Exhibits A-1 and C-1 attached hereto, for use in
connection with the transfer of beneficial interests between a Rule 144A
Global Certificate and a Regulation S Global Certificate or to a Senior Note Series 2016
or a Senior Note Series 2036 in definitive form, or otherwise) received
from the Holders and any transferees of any Notes regarding the validity,
legality and due authorization of any such transfer, the eligibility of the
transferee to receive such Note and any other facts and circumstances related
to such transfer. Transfers of beneficial interests between a Rule 144A
Global Certificate and a Regulation S Global Certificate, and other transfers
relating to beneficial interests in the Notes in global form, shall be
reflected by endorsements of the Trustee, as custodian for DTC, on the schedule
attached to such certificate.

The
Company has entered into a Registration Rights Agreement dated as of June 14,
2006 (the “Registration Rights Agreement”) with the initial purchasers of the
Notes pursuant to 

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which the Notes
that are issued and sold without registration (the “Private Notes”) under the
Securities Act may be exchanged for Notes that will be registered under the
Securities Act and that will otherwise have substantially the same terms as the
Private Notes (the “Exchange Notes”), except that such Exchange Notes will be
issued in the forms of Global Note attached hereto as Exhibits A and C and
will bear all customary legends (except for the non-registration,
Regulation S and registration rights legends) or, in lieu of such exchange, the
Company has agreed to file a shelf registration statement for the resale of the
Notes (in which case any Notes so resold will be issued in the forms of Global
Note attached hereto as Exhibits A and C and bear all customary legends
(except for the non-registration, Regulation S and registration rights
legends)). The Private Notes will be exchanged for Exchange Notes only pursuant
to an effective registration statement under the Securities Act and otherwise
in accordance with the Registration Rights Agreement and the Indenture. The
Private Notes and the Exchange Notes will constitute a single series of notes
under the Indenture. Exchange Notes shall be authenticated and delivered by the
Trustee at one time or from time to time upon the receipt by the Trustee of a
Company Order in principal amounts equal to the principal amounts of the
Private Notes surrendered in exchange therefor. In addition, upon the receipt
of such Company Order, the Trustee will take such actions as to effectuate the
exchange of any Private Notes for Exchange Notes in accordance with the
Registration Rights Agreement and the Indenture.

So
long as any of the Notes are outstanding, the Company will not, prior to June 15,
2009, optionally redeem, purchase or otherwise retire in full its outstanding
First Mortgage Bonds not subject to the release provisions of the Indenture.

In
connection with this Company Order, there are delivered to you herewith the
following:

1.               Certified copies of
the resolutions adopted by the Board of Directors of the Company authorizing
this Company Order and the issuance and sale of the Notes by the Company
pursuant to Section 2.05(c)(1) of the Indenture;

2.               Opinions of Counsel
addressed to you or in which it is stated that you may rely pursuant to Section 2.05(c)(2) of
the Indenture;

3.               Expert’s
certificate pursuant to Section 2.05(c)(3) of the Indenture;

4.               Officers’
Certificate pursuant to Section 2.05(c)(4) of the Indenture;

5.               Two Global Notes
representing the Senior Notes Series 2016 executed on behalf of the
Company in accordance with the terms of Section 2.05(a) of the
Indenture, specifying the terms of the Senior Notes Series 2016 (which
terms are incorporated by reference herein);

6.               Two Global Notes
representing the Senior Notes Series 2036 executed on behalf of the
Company in accordance with the terms of Section 2.05(a) of the
Indenture, specifying the terms of the Senior Notes Series 2036 (which
terms are incorporated by reference herein); and

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7.               Pursuant to Section 2.05(c)(3) of
the Indenture, the Company’s First Mortgage Bonds designated “First Mortgage
Bonds, Senior Notes Series AA” in the principal amount of $54,000,000
relating to the Senior Notes Series 2016 (the “First Mortgage Bonds,
Senior Notes Series AA”) and the Company’s First Mortgage Bonds designated
“First Mortgage Bonds, Senior Notes Series BB” in the principal amount of
$42,000,000 relating to the Senior Notes Series 2036 (the “First Mortgage
Bonds, Senior Notes Series BB”, and together with the First Mortgage
Bonds, Senior Notes Series AA, the “First Mortgage Bonds”), in each case
fully registered in the name of the Trustee in trust for the benefit of the
Holders from time to time of such Senior Notes Series 2016 and such Senior
Notes Series 2036.

You
are hereby instructed to authenticate the Global Notes representing the Senior
Notes Series 2016 and the Senior Notes Series 2036 and hold them as
DTC’s custodian. The Global Notes representing the Senior Notes Series 2016
and the Senior Notes Series 2036 are to be held for delivery through the
facilities of DTC to the initial purchasers thereof against payment therefor at
the closing in respect of the sale thereof, such closing to be held at 10:00 a.m.,
New York time, June 14, 2006, at the offices of Pillsbury Winthrop Shaw
Pittman LLP, 1540 Broadway, New York, New York 10036.

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Please
acknowledge receipt of the Global Notes representing the Notes, the
instructions referred to above and the supporting documentation pursuant to the
Indenture referred to above (including the First Mortgage Bonds in trust for
the benefit of the Holders).

	
  

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  Central Illinois Light Company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jerre E. Birdsong

  
	
   

  	
   

  	
  Name:

  	
  Jerre E. Birdsong

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Treasurer

  

 

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Receipt
from the Company of the Global Notes representing the Notes, certain
instructions related thereto and the supporting documentation pursuant to the
Indenture (including the First Mortgage Bonds in trust for the benefit of the
Holders) in connection with the authentication and delivery of the Notes is
hereby acknowledged.

	
  

  	
  The Bank of New York Trust Company, N.A.,

  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel G. Dwyer

  
	
   

  	
   

  	
  Name:

  	
  Daniel G. Dwyer

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

 6

 

EXHIBIT A

FORM OF SENIOR NOTE SERIES 2016 GLOBAL
NOTE

[depository legend]

THIS SECURITY IS A
GLOBAL NOTE REGISTERED IN THE NAME OF THE DEPOSITARY (REFERRED TO HEREIN) OR A
NOMINEE THEREOF AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE FOR THE
INDIVIDUAL NOTES REPRESENTED HEREBY AS PROVIDED IN THE INDENTURE REFERRED TO
BELOW, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY. UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK), TO THE
TRUSTEE FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND
ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

[non-registration legend to be included on Private Notes]

THIS SECURITY HAS
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”). THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, AGREES FOR THE BENEFIT
OF THE COMPANY THAT THIS SECURITY MAY NOT BE RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED PRIOR TO THE DATE WHICH IS TWO YEARS AFTER THE LATER OF THE
ORIGINAL ISSUANCE DATE THEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY
AFFILIATE THEREOF WAS THE OWNER OF THIS SECURITY OR THE EXPIRATION OF SUCH
SHORTER PERIOD AS MAY BE PRESCRIBED BY RULE 144(k), OR ANY SUCCESSOR
PROVISION THEREOF, UNDER THE SECURITIES ACT (THE “RESALE RESTRICTION
TERMINATION DATE”) OTHER THAN (1) TO THE COMPANY, (2) IN A
TRANSACTION ENTITLED TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT, (3) SO LONG AS THIS SECURITY IS ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A
PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
WITHIN THE MEANING OF RULE 144A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A (AS
INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER
ATTACHED TO THIS SECURITY), (4) IN AN OFFSHORE TRANSACTION IN ACCORDANCE
WITH RULE 903 OR 904 OF

 A-1
 

 

REGULATION
S UNDER THE SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR
ON THE CERTIFICATE OF TRANSFER ATTACHED TO THIS SECURITY), (5) TO AN
INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a)(1), (2),
(3) OR (7) UNDER THE SECURITIES ACT (AS INDICATED BY THE BOX CHECKED
BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ATTACHED TO THIS SECURITY)
THAT IS ACQUIRING THIS SECURITY FOR INVESTMENT PURPOSES AND NOT FOR
DISTRIBUTION, AND A CERTIFICATE IN THE FORM ATTACHED TO THIS SECURITY IS
DELIVERED BY THE TRANSFEREE TO THE COMPANY AND THE TRUSTEE OR (6) IN
ACCORDANCE WITH ANOTHER APPLICABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES. THE FOREGOING RESTRICTIONS ON RESALE WILL NOT APPLY SUBSEQUENT TO THE
RESALE RESTRICTION TERMINATION DATE. THE HOLDER OF THIS SECURITY ACKNOWLEDGES
THAT THE COMPANY RESERVES THE RIGHT PRIOR TO ANY OFFER, SALE OR OTHER TRANSFER (1) PURSUANT
TO CLAUSE (2) PRIOR TO THE RESALE RESTRICTION TERMINATION DATE TO REQUIRE
THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS OR OTHER INFORMATION
SATISFACTORY TO THE COMPANY AND (2) IN EACH OF THE FOREGOING CASES, TO
REQUIRE THAT A CERTIFICATE AS TO COMPLIANCE WITH CERTAIN CONDITIONS TO TRANSFER
IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE COMPANY.

[Regulation S legend
to be included on Private Notes]

BY ITS ACQUISITION
HEREOF, EACH HOLDER OF THIS SECURITY, AND EACH PERSON THAT ACQUIRES A
BENEFICIAL INTEREST IN SUCH SECURITY, AGREES THAT PRIOR TO THE EXPIRATION OF
THE DISTRIBUTION COMPLIANCE PERIOD (AS DEFINED IN THE COMPANY ORDER
ESTABLISHING THE TERMS OF THIS SECURITY), BENEFICIAL INTERESTS IN THIS SECURITY
MAY ONLY BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED (A) INSIDE THE
UNITED STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH
RULE 144A UNDER THE SECURITIES ACT OF 1933 OR (B) OUTSIDE THE UNITED
STATES IN COMPLIANCE WITH RULE 903 OR 904 UNDER THE SECURITIES ACT OF
1933 AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF THE
STATES OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION.

[registration rights
legend to be included on Private Notes]

BY ITS ACCEPTANCE
OF THE SECURITIES EVIDENCED HEREBY OR A BENEFICIAL INTEREST IN SUCH SECURITIES,
THE HOLDER OF, AND ANY PERSON THAT ACQUIRES A BENEFICIAL INTEREST IN, SUCH
SECURITIES AGREES TO BE BOUND BY THE PROVISIONS OF THE REGISTRATION RIGHTS
AGREEMENT (THE “REGISTRATION RIGHTS AGREEMENT”) DATED AS OF JUNE 14, 2006
AND

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RELATING
TO THE REGISTRATION UNDER THE SECURITIES ACT OF SECURITIES EXCHANGEABLE FOR THE
SECURITIES EVIDENCED HEREBY AND REGISTRATION OF THE SECURITIES EVIDENCED
HEREBY.

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Illinois Commerce
Commission ID No.: 6350

CENTRAL
ILLINOIS LIGHT COMPANY

6.20% SENIOR SECURED NOTE DUE 2016

	
  CUSIP: [153645AV8] [U15400AA9]

  	
  NUMBER: 1

  
	
   

  	
   

  
	
  ISIN: [US153645AV84] [USU15400AA96]

  	
   

  
	
   

  	
   

  
	
  ORIGINAL ISSUE DATE: June 14, 2006

  	
  PRINCIPAL AMOUNT: Listed on
  Schedule I hereto

  
	
   

  	
   

  
	
   

  	
   

  
	
  INTEREST RATE: 6.20%

  	
  MATURITY DATE: June 15,
  2016

  

CENTRAL
ILLINOIS LIGHT COMPANY, a corporation of the State of Illinois (the “COMPANY”),
for value received hereby promises to pay to CEDE & CO. or registered
assigns, the principal amount specified above on the Maturity Date set forth
above, and to pay interest thereon from and including the Original Issue Date
specified above or from and including the most recent Interest Payment Date to
which interest has been paid or duly provided for, semi-annually in arrears on June 15th and December 15th in
each year, commencing December 15, 2006, and on the Maturity Date, at the
per annum interest rate set forth above until the principal hereof is paid or
made available for payment. [If the Company does not comply with certain of its
obligations under the Registration Rights Agreement, this bond shall, in accordance
with Section 2(e) of the Registration Rights Agreement, bear
additional interest (“Additional Interest”) in addition to the interest
provided for in the immediately preceding sentence. For purposes of this Note,
the term “interest” shall be deemed to include interest provided for in the
second immediately preceding sentence and Additional Interest, if any.]* No
interest shall accrue on the Maturity Date, so long as the principal amount of
this Note is paid in full on the Maturity Date. The interest so payable and
punctually paid or duly provided for on any such Interest Payment Date will
(except for interest payable on the Maturity Date set forth above or, if
applicable, upon redemption or acceleration), as provided in the Indenture (as
defined below), be paid to the Person in whose name this Note is registered at
the close of business on the Regular Record Date for such interest, which shall
be June 1 or December 1, as the case may be, next preceding such
Interest Payment Date; provided, that the first Interest Payment Date for any
part of this Note, the Original Issue Date of which is after a Regular Record
Date but prior to the applicable Interest Payment Date, shall be the Interest
Payment Date following the next succeeding Regular Record Date; and provided,
that interest payable on the Maturity Date set forth above or, if applicable,
upon redemption or acceleration, shall be payable to the Person to whom
principal shall be payable. Except as otherwise provided in the Indenture, any
such interest not so punctually paid or duly provided for will forthwith cease
to be payable to the Holder on such Regular Record Date and shall be paid to
the Person in whose name this Note is registered at the close of business on a
Special Record Date for the payment of such defaulted interest to be fixed by
the Trustee, notice whereof shall be given to Noteholders not more than

*       Include
bracketed language only in a Private Note.

 A-4
 

 

fifteen
days nor fewer than ten days prior to such Special Record Date. Payment of the
principal of and interest and premium on this Note shall be payable pursuant to
Section 2.12(a) of the Indenture.

This Note is a
Global Note in respect of a duly authorized issue of 6.20% Senior Secured Notes
due 2016 (the “NOTES OF THIS SERIES”, which term includes any Global Notes
representing such Notes) of the Company issued and to be issued under an
Indenture dated as of June 1, 2006 between the Company and The Bank of New
York Trust Company, N.A., as trustee (herein called the “TRUSTEE”, which term
includes any successor Trustee under the Indenture) and indentures supplemental
thereto (collectively, the “INDENTURE”). Under the Indenture, one or more
series of notes may be issued and, as used herein, the term “Notes” refers to
the Notes of this Series. Reference is hereby made to the Indenture for a more
complete statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Noteholders and of
the terms upon which the Notes are and are to be authenticated and delivered.
This Note has been issued in respect of the series designated on the first page hereof,
issued in the initial aggregate principal amount of $54,000,000.

Prior to the
Release Date (as hereinafter defined), the Notes will be secured by first
mortgage bonds (the “SENIOR NOTE FIRST MORTGAGE BONDS”) delivered by the
Company to the Trustee for the benefit of the Holders of the Notes, issued
under the Indenture of Mortgage or Deed of Trust, dated as of April 1,
1933, from the Company to Deutsche Bank Trust Company Americas (successor to
Bankers Trust Company), as trustee (the “MORTGAGE TRUSTEE”), as supplemented
and modified (collectively, the “FIRST MORTGAGE”). Reference is made to the
First Mortgage and the Indenture for a description of the rights of the Trustee
as holder of the Senior Note First Mortgage Bonds, the property mortgaged and
pledged, the nature and extent of the security and the rights of the holders of
first mortgage bonds, under the First Mortgage and the rights of the Company
and of the Mortgage Trustee in respect thereof, the duties and immunities of
the Mortgage Trustee and the terms and conditions upon which the Senior Note
First Mortgage Bonds are secured and the circumstances under which additional
first mortgage bonds may be issued.

From and after
such time as all first mortgage bonds (other than Senior Note First Mortgage
Bonds and other first mortgage bonds securing a related series of Notes) issued
under the First Mortgage have been retired through payment, redemption or
otherwise at, before or after the maturity thereof (the “RELEASE DATE”), the
Senior Note First Mortgage Bonds shall cease to secure the Notes in any manner.
In certain circumstances prior to the Release Date as provided in the
Indenture, the Company is permitted to reduce the aggregate principal amount of
a series of Senior Note First Mortgage Bonds held by the Trustee, but in no
event prior to the Release Date to an amount less than the aggregate
outstanding principal amount of the series of Notes initially issued
contemporaneously with such Senior Note First Mortgage Bonds.

So long as any
Note of this Series is Outstanding, the Company will not, prior to June 15,
2009, optionally redeem, purchase or otherwise retire in full its outstanding First
Mortgage Bonds not subject to the release provisions of the Indenture.

Each Note of this Series shall
be dated and issued as of the date of its authentication by the Trustee and
shall bear an Original Issue Date. Each Note of this Series issued upon transfer,

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exchange
or substitution of such Note shall bear the Original Issue Date of such
transferred, exchanged or substituted Note, as the case may be.

Interest on this
Note will accrue from and including the Original Issue Date specified above to,
but excluding, December 15, 2006, and thereafter, from and including each
Interest Payment Date to, but excluding, the next succeeding Interest Payment
Date or the Maturity Date, as the case may be.

Interest payments
for this Note shall be computed on the basis of a 360-day year consisting
of twelve 30-day months. If any Interest Payment Date falls on a day that
is not a Business Day, the Interest Payment Date will be the next succeeding
Business Day (and without any interest or other payment in respect of any such
delay). If the Maturity Date of this Note or any redemption date falls on a day
that is not a Business Day, the payment of principal, premium, if any, and
interest will be made on the next succeeding Business Day, and no interest on
such payment shall accrue for the period from and after the Maturity Date or
such redemption date.

All or a portion
of the Notes of this Series may be redeemed at the option of the Company
at any time or from time to time. The redemption price for the Notes of this Series to
be redeemed on any redemption date will be equal to the greater of the
following amounts: (a) 100% of the principal amount of the Notes of this Series being
redeemed on the redemption date; or (b) the sum of the present values of
the remaining scheduled payments of principal and interest on the Notes of this
Series being redeemed on that redemption date (not including any portion
of any payments of interest accrued to the redemption date) discounted to the
redemption date on a semiannual basis at the Adjusted Treasury Rate (as defined
below) plus 20 basis points, as determined by the Reference Treasury Dealer (as
defined below); plus, in each case, accrued and unpaid interest thereon to the
redemption date. Notwithstanding the foregoing, installments of interest on
Notes of this Series that are due and payable on Interest Payment Dates
falling on or prior to a redemption date will be payable on the Interest
Payment Date to the Holder of this Note as of the close of business on the
relevant Regular Record Date. The redemption price will be calculated on the
basis of a 360-day year consisting of twelve 30-day months.

The Company shall
mail notice of any redemption at least 30 days but not more than 60 days before
the redemption date to each Holder of the Notes of this Series to be
redeemed. Unless the Company defaults in payment of the redemption price, on
and after the redemption date, interest will cease to accrue on the Notes of
this Series or portions thereof called for redemption.

“ADJUSTED TREASURY
RATE” means, with respect to any redemption date, the rate per annum equal to
the semiannual equivalent yield to maturity of the Comparable Treasury Issue,
assuming a price for the Comparable Treasury Issue (expressed as a percentage
of its principal amount) equal to the Comparable Treasury Price for such
redemption date.

“COMPARABLE
TREASURY ISSUE” means the United States Treasury security selected by the
Reference Treasury Dealer as having a maturity comparable to the remaining term
of the Notes of this Series to be redeemed that would be utilized, at the
time of selection 

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and in
accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of such
Notes of this Series.

“COMPARABLE
TREASURY PRICE” means, with respect to any redemption date, (A) the
average of the Reference Treasury Dealer Quotations for such redemption date,
after excluding the highest and lowest such Reference Treasury Dealer
Quotations, or (B) if the Trustee obtains fewer than four such Reference
Treasury Dealer Quotations, the average of all such quotations, or (C) if
only one Reference Treasury Dealer Quotation is received, such quotation.

“REFERENCE
TREASURY DEALER” means (A) Citigroup Global Markets Inc. or Goldman, Sachs &
Co. or their respective affiliates which are primary U.S. Government securities
dealers in New York City (each, a “Primary Treasury Dealer”), and their
respective successors; provided, however, that if any of the foregoing shall
cease to be a Primary Treasury Dealer, the Company shall substitute therefor
another Primary Treasury Dealer; and (B) any other Primary Treasury Dealer(s) selected
by the Trustee after consultation with the Company.

“REFERENCE
TREASURY DEALER QUOTATIONS” means, with respect to each Reference Treasury
Dealer and any redemption date, the average, as determined by the Trustee, of
the bid and asked prices for the Comparable Treasury Issue (expressed in each
case as a percentage of its principal amount) quoted in writing to the Trustee
by such Reference Treasury Dealer at 5:00 p.m. (New York City time) on the
third Business Day preceding such redemption date.

The Company, at its option, and subject to the terms
and conditions provided in the Indenture, will be discharged from any and all
obligations in respect of the Notes of this Series (except for certain
obligations including obligations to register the transfer or exchange of Notes
of this Series, replace stolen, lost or mutilated Notes of this Series,
maintain paying agencies and hold monies for payment in trust, all as set forth
in the Indenture) if the Company deposits with the Trustee money, U.S.
Government Obligations which through the payment of interest thereon and
principal thereof in accordance with their terms will provide money, or a
combination of money and U.S. Government Obligations, in any event in an amount
sufficient, without reinvestment, to pay all the principal of and any premium
and interest on the Notes of this Series on the dates such payments are due
in accordance with the terms of the Notes of this Series.

If an Event of Default shall occur and be continuing with respect to
the Notes, the principal of and interest on the Notes may be declared due and
payable in the manner and with the effect provided in the Indenture and, upon
such declaration, the Trustee shall demand the redemption of the Senior Note
First Mortgage Bonds to the extent provided in the Indenture.

The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modifications of the rights and obligations of the
Company and the rights of the Noteholders under the Indenture at any time by
the Company and the Trustee with the consent of the Holders of a majority in
aggregate principal amount of the outstanding Notes. Any such consent or waiver
by the Holder of this Note shall be conclusive and binding upon such Holder and
upon all future Holders of this Note and of any Note issued upon the
registration of transfer 

 A-7
 

 

hereof or in exchange therefor or in lieu thereof
whether or not notation of such consent or waiver is made upon this Note.

As set forth in and subject to the provisions of the Indenture, no
Holder of any Notes will have any right to institute any proceeding with
respect to the Indenture or for any remedy thereunder unless such Holder shall
have previously given to the Trustee written notice of a continuing Event of
Default with respect to such Notes, the Holders of a majority in aggregate
principal amount of the outstanding Notes affected by such Event of Default
shall have made written request and offered reasonable indemnity to the Trustee
to institute such proceeding as Trustee and the Trustee shall have failed to
institute such proceeding within 60 days; provided, however, that such limitations
do not apply to a suit instituted by the Holder hereof for the enforcement of
payment of the principal of and any premium or interest on this Note on or
after the respective due dates expressed herein.

No reference herein to the Indenture and to provisions of this Note or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and any premium and
interest on this Note at the times, places and rates and the coin or currency
prescribed in the Indenture.

As provided in the Indenture and subject to certain limitations therein
set forth, this Note may be transferred only as permitted by the legend hereto
and the provisions of the Indenture.

The Indenture and the Notes shall be governed by, and construed in
accordance with, the laws of the State of New York without regard to conflicts
of law principles thereof.

Unless the certificate of authentication hereon has been executed by
the Trustee, directly or through an Authenticating Agent by manual signature of
an authorized officer, this Note shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

All terms used in this Note that are defined in the Indenture shall
have the meanings assigned to them in the Indenture unless otherwise indicated
herein.

 A-8
 

 

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

	
  

  	
  CENTRAL ILLINOIS LIGHT COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Assistant Secretary

  

 

	
  TRUSTEE’S CERTIFICATE

  	
   

  
	
  OF AUTHENTICATION

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated: June 14, 2006

  	
   

  
	
   

  	
   

  	
   

  
	
  This Note is one of the Notes of the series herein

  	
   

  
	
  designated, described or provided for in the within-

  	
   

  
	
  mentioned Indenture.

  	
   

  
	
   

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  

 

 A-9
 

 

SCHEDULE I

[144A]*[REGULATION S]* GLOBAL SECURITY

The
initial principal amount of Notes evidenced by this Global Note is
$___________.

CHANGES
TO PRINCIPAL AMOUNT OF NOTES EVIDENCED BY GLOBAL NOTE

	
  Date

  	
   

  	
  Principal Amount of

  Notes by which this

  Global Note is to be

  Reduced or Increased,

  and Reason for

  Reduction or Increase

  	
   

  	
  Remaining Principal

  Amount of Notes

  Represented by this

  Global Note

  	
   

  	
  Notation Made by

  
	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

*       Include
bracketed language only in a Private Note.

 A-10
 

 

EXHIBIT A-1

CERTIFICATE OF TRANSFER*

CENTRAL
ILLINOIS LIGHT COMPANY

6.20%
Senior Secured Notes due 2016

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

PLEASE INSERT SOCIAL SECURITY OR
OTHER

IDENTIFYING NUMBER OF ASSIGNEE

Name and address of assignee must be printed or typewritten.

	
  $

  

 

principal amount of beneficial
interest in the referenced Security of the Company and does hereby irrevocably
constitute and appoint

to transfer the said beneficial
interest in such Security, with full power of substitution in the premises.

The undersigned certifies that
said beneficial interest in said Security is being resold, pledged or otherwise
transferred as follows:

(check
one)

o                        to the Company;

o                        to a Person whom the undersigned reasonably
believes is a qualified institutional buyer within the meaning of Rule 144A
under the Securities Act of 1933, as amended (the “Securities Act”), purchasing
for its own account or for the account of a qualified institutional buyer to
whom notice is given that the resale, pledge or other transfer is being made in
reliance on Rule 144A;

o                        in an offshore transaction in accordance with Rule 903
or 904 of Regulation S under the Securities Act;

o                        to an institution that is an “accredited investor”
as defined in Rule 501(a)(1), (2), (3) or (7) under the
Securities Act that is acquiring this Security for investment purposes and not
for distribution (attach a copy of an Institutional Accredited Investor
Certificate in the form annexed signed by an authorized officer of the
transferee);

o                        as otherwise permitted by the non-registration
legend appearing on this Security; or

o                        as otherwise agreed by the Company, confirmed in
writing to the Trustee, as follows: [describe]

	
  Dated:

  	
   

  	
   

  	
  Signature:

  	
   

  
	
   

  	
   

  
	
   

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

  

 

*       Include
this form of Certificate of Transfer only in a Private Note.

 A-11
 

 

SIGNATURE GUARANTEE

Signatures must be guaranteed by an “eligible guarantor institution”
meeting the requirement of the registrar, which requirements include membership
or participation in the Security Transfer Agent Medallion Program (“STAMP”) or
such other “signature guarantee program” as may be determined by the registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

 A-12
 

 

[FORM OF INSTITUTIONAL ACCREDITED INVESTOR CERTIFICATE]*

[Transferor Name and Address]

Ladies
and Gentlemen:

In connection with our proposed purchase of 6.20% Senior Secured Notes
due 2016 (the “Notes”) issued by Central Illinois Light Company d/b/a
AmerenCILCO (the “Issuer”), we confirm that:

1.             We have received a copy of the
Offering Memorandum (the “Offering Memorandum”) relating to the Notes and such
other information as we deem necessary in order to make our investment decision.
We acknowledge that we have read and agree to the matters stated under the
caption NOTICE TO INVESTORS in such Offering Memorandum.

2.             We understand that any subsequent
transfer of the Notes is subject to certain restrictions and conditions set
forth in the indenture relating to the Notes (the “Indenture”) and as set forth
under NOTICE TO INVESTORS in the Offering Memorandum and the undersigned agrees
to be bound by, and not to resell, pledge or otherwise transfer the Notes
except in compliance with such restrictions and conditions and the Securities
Act of 1933, as amended (the “Securities Act”).

3.             We understand that
the offer and sale of the Notes have not been registered under the Securities
Act, and that the Notes may not be offered or sold except as permitted in the
following sentence. We agree, on our own behalf and on behalf of any accounts
for which we are acting as hereinafter stated, that if we sell any Notes, we
will do so only (A) to the Issuer, (B) so long as the Notes are
eligible for resale pursuant to Rule 144A under the Securities Act (“Rule 144A”),
to a person whom we reasonably believe is a “qualified institutional buyer”
within the meaning of Rule 144A that purchases for its own account or for
the account of a qualified institutional buyer to whom notice is given that the
resale, pledge or other transfer is being made in reliance on Rule 144A, (C) to
an institutional “accredited investor” (as defined below) that, prior to such
transfer, furnishes to the Trustee (as defined in the Indenture) a signed
letter containing certain representations and agreements relating to the
restrictions on transfer of the Notes (substantially in the form of this
letter), (D) in an offshore transaction in accordance with Rule 904
of Regulation S under the Securities Act, (E) pursuant to the exemption
from registration provided by Rule 144 under the Securities Act (if
available), or (F) in accordance with another applicable exemption from
the registration requirements of, or in a transaction not subject to, the
Securities Act or pursuant to an effective registration statement under the
Securities Act, and we further agree to provide

*       Include
this form only in a Private Note.

 A-13
 

 

to any person purchasing any of
the Notes from us a notice advising such purchaser that resales of the Notes
are restricted as stated herein.

4.             We understand that, on any proposed
resale of any Notes, we will be required to furnish to the Trustee and the
Issuer such certification and other information as the Trustee and the Issuer
may reasonably require to confirm that the proposed sale complies with the
foregoing restrictions. We further understand that the Notes purchased by us
will bear a legend to the foregoing effect.

5.             We are an institutional “accredited
investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the
Securities Act) and have such knowledge and experience in financial and
business matters as to be capable of evaluating the merits and risks of our
investment in the Notes, and we and any accounts for which we are acting are
each able to bear the economic risk of our or its investment.

6.             We are acquiring the Notes
purchased by us for our own account or for one or more accounts (each of which
is an institutional “accredited investor”) as to each of which we exercise sole
investment discretion in each case for investment and not with a view to, or
for offer or sale in connection with, any distribution in violation of the
Securities Act.

You, the Issuer and the Trustee are entitled to rely
upon this letter and are irrevocably authorized to produce this letter or a
copy hereof to any interested party in any administrative or legal proceeding
or official inquiry with respect to the matters covered hereby.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 A-14

 

 

EXHIBIT B

FORM OF SENIOR NOTE SERIES 2016 DEFINITIVE NOTE

[non-registration legend to be included on Private Notes]

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”). THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, AGREES
FOR THE BENEFIT OF THE COMPANY THAT THIS SECURITY MAY NOT BE RESOLD,
PLEDGED OR OTHERWISE TRANSFERRED PRIOR TO THE DATE WHICH IS TWO YEARS AFTER THE
LATER OF THE ORIGINAL ISSUANCE DATE THEREOF AND THE LAST DATE ON WHICH THE
COMPANY OR ANY AFFILIATE THEREOF WAS THE OWNER OF THIS SECURITY OR THE
EXPIRATION OF SUCH SHORTER PERIOD AS MAY BE PRESCRIBED BY RULE 144(k), OR
ANY SUCCESSOR PROVISION THEREOF, UNDER THE SECURITIES ACT (THE “RESALE
RESTRICTION TERMINATION DATE”) OTHER THAN (1) TO THE COMPANY, (2) IN
A TRANSACTION ENTITLED TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT, (3) SO LONG AS THIS SECURITY IS ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A
PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
WITHIN THE MEANING OF RULE 144A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A (AS
INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER
ON THE REVERSE OF THIS SECURITY), (4) IN AN OFFSHORE TRANSACTION IN
ACCORDANCE WITH RULE 903 OR 904 OF REGULATION S UNDER THE SECURITIES ACT (AS
INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER
ON THE REVERSE OF THIS SECURITY), (5) TO AN INSTITUTION THAT IS AN “ACCREDITED
INVESTOR” AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) UNDER THE
SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE
CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS SECURITY) THAT IS ACQUIRING THIS
SECURITY FOR INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION, AND A CERTIFICATE IN
THE FORM ATTACHED TO THIS SECURITY IS DELIVERED BY THE TRANSFEREE TO THE
COMPANY AND THE TRUSTEE OR (6) IN ACCORDANCE WITH ANOTHER APPLICABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT OR PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. AN INSTITUTIONAL
ACCREDITED INVESTOR HOLDING THIS SECURITY AGREES IT WILL FURNISH TO THE COMPANY
AND THE TRUSTEE SUCH CERTIFICATES AND OTHER INFORMATION AS THEY MAY REASONABLY
REQUIRE TO CONFIRM THAT ANY TRANSFER BY IT OF THIS SECURITY COMPLIES WITH THE
FOREGOING RESTRICTIONS. THE FOREGOING RESTRICTIONS ON RESALE WILL NOT APPLY
SUBSEQUENT TO THE RESALE RESTRICTION TERMINATION DATE. THE HOLDER OF THIS
SECURITY ACKNOWLEDGES THAT THE COMPANY RESERVES THE RIGHT 

 B-1
 

 

 

PRIOR TO ANY
OFFER, SALE OR OTHER TRANSFER (1) PURSUANT TO CLAUSE (2) PRIOR TO THE
RESALE RESTRICTION TERMINATION DATE TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATIONS OR OTHER INFORMATION SATISFACTORY TO THE COMPANY AND (2) IN
EACH OF THE FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE AS TO COMPLIANCE
WITH CERTAIN CONDITIONS TO TRANSFER IS COMPLETED AND DELIVERED BY THE
TRANSFEROR TO THE COMPANY.

[Regulation S
legend to be included on Private Notes]

BY
ITS ACQUISITION HEREOF, EACH HOLDER OF THIS SECURITY, AND EACH PERSON THAT
ACQUIRES A BENEFICIAL INTEREST IN SUCH SECURITY, AGREES THAT PRIOR TO THE
EXPIRATION OF THE DISTRIBUTION COMPLIANCE PERIOD (AS DEFINED IN THE COMPANY
ORDER ESTABLISHING THE TERMS OF THIS SECURITY), BENEFICIAL INTERESTS IN THIS
SECURITY MAY ONLY BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED (A) INSIDE
THE UNITED STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH
RULE 144A UNDER THE SECURITIES ACT OF 1933 OR (B) OUTSIDE THE UNITED
STATES IN COMPLIANCE WITH RULE 903 OR 904 UNDER THE SECURITIES ACT OF
1933 AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF
THE STATES OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION.

[registration
rights legend to be included on Private Notes]

BY
ITS ACCEPTANCE OF THE SECURITIES EVIDENCED HEREBY OR A BENEFICIAL INTEREST IN
SUCH SECURITIES, THE HOLDER OF, AND ANY PERSON THAT ACQUIRES A BENEFICIAL
INTEREST IN, SUCH SECURITIES AGREES TO BE BOUND BY THE PROVISIONS OF THE
REGISTRATION RIGHTS AGREEMENT (THE “REGISTRATION RIGHTS AGREEMENT”) DATED AS OF
JUNE 14, 2006 AND RELATING TO THE REGISTRATION UNDER THE SECURITIES ACT OF
SECURITIES EXCHANGEABLE FOR THE SECURITIES EVIDENCED HEREBY AND REGISTRATION OF
THE SECURITIES EVIDENCED HEREBY.

 B-2
 

 

 

Illinois Commerce Commission ID No.: 6350

CENTRAL ILLINOIS LIGHT COMPANY

6.20% SENIOR SECURED NOTE DUE 2016

	
  CUSIP: 153645AW6

  	
  PRINCIPAL AMOUNT: $54,000,000

  
	
  ISIN: US153645AW67

  	
   

  
	
   

  	
   

  
	
  ORIGINAL ISSUE DATE: June 14, 2006

  	
  MATURITY DATE: June 15,
  2016

  
	
   

  	
   

  
	
  INTEREST RATE: 6.20%

  	
  NUMBER: 1

  

 

CENTRAL ILLINOIS LIGHT
COMPANY, a corporation of the State of Illinois (the “COMPANY”), for value
received hereby promises to pay to CEDE & CO. or registered assigns, the
principal amount specified above on the Maturity Date set forth above, and to
pay interest thereon from and including the Original Issue Date specified above
or from and including the most recent Interest Payment Date to which interest
has been paid or duly provided for, semi-annually in arrears on June 15th and December 15th in
each year, commencing December 15, 2006, and on the Maturity Date, at the
per annum interest rate set forth above until the principal hereof is paid or
made available for payment. [If the Company does not comply with certain of its
obligations under the Registration Rights Agreement, this bond shall, in
accordance with Section 2(e) of the Registration Rights Agreement,
bear additional interest (“Additional Interest”) in addition to the interest
provided for in the immediately preceding sentence. For purposes of this Note,
the term “interest” shall be deemed to include interest provided for in the
second immediately preceding sentence and Additional Interest, if any.]* No
interest shall accrue on the Maturity Date, so long as the principal amount of
this Note is paid in full on the Maturity Date. The interest so payable and
punctually paid or duly provided for on any such Interest Payment Date will
(except for interest payable on the Maturity Date set forth above or, if
applicable, upon redemption or acceleration), as provided in the Indenture (as
defined below), be paid to the Person in whose name this Note is registered at
the close of business on the Regular Record Date for such interest, which shall
be June 1 or December 1, as the case may be, next preceding such
Interest Payment Date; provided, that the first Interest Payment Date for any
part of this Note, the Original Issue Date of which is after a Regular Record
Date but prior to the applicable Interest Payment Date, shall be the Interest
Payment Date following the next succeeding Regular Record Date; and provided,
that interest payable on the Maturity Date set forth above or, if applicable,
upon redemption or acceleration, shall be payable to the Person to whom
principal shall be payable. Except as otherwise provided in the Indenture
(referred to on the reverse hereof), any such interest not so punctually paid
or duly provided for will forthwith cease to be payable to the Holder on such
Regular Record Date and shall be paid to the Person in whose name this Note is
registered at the close of business on a Special Record Date for the payment of
such defaulted interest to be fixed by the Trustee, notice whereof shall be
given to Noteholders not more than fifteen days nor fewer than ten days prior
to such Special Record Date. Principal, applicable premium and interest due at
the Maturity of this Note shall be 

*                    Include
bracketed language only in a Private Note.

 B-3
 

 

 

payable in immediately
available funds when due upon presentation and surrender of this Note at the
corporate trust office of the Trustee or at the authorized office of any paying
agent in the Borough of Manhattan, The City and State of New York or St. Louis,
Missouri. Interest on this Note (other than interest payable at Maturity) shall
be paid by check payable in clearinghouse funds to the Holder as its name
appears on the register; provided, that if the Trustee receives a written
request from any Holder of Notes, the aggregate principal amount of all of
which having the same Interest Payment Date as this Note equals or exceeds
$10,000,000, on or before the applicable Regular Record Date for such Interest
Payment Date, interest on the Note shall be paid by wire transfer of immediately
available funds to a bank within the continental United States (designated by
such Holder in its request or by direct deposit into the account of such Holder
designated by such Holder in its request if such account is maintained with the
Trustee or any paying agent).

REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF
THIS NOTE SET FORTH IN FULL ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS
SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH IN FULL AT THIS
PLACE.

Unless the certificate of authentication hereon has
been executed by the Trustee referred to on the reverse hereof, directly or
through an Authenticating Agent by manual signature of an authorized officer,
this Note shall not be entitled to any benefit under the Indenture or be valid
or obligatory for any purpose.

 B-4
 

 

 

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

	
  

  	
  CENTRAL ILLINOIS LIGHT COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President and Treasurer

  
	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Assistant Secretary

  
	
   

  	
   

  
	
  TRUSTEE’S CERTIFICATE

  OF AUTHENTICATION

  	
   

  
	
   

  	
   

  
	
  Dated: June 14, 2006

  	
   

  
	
   

  	
   

  
	
  This Note is one of the Notes of the series herein

  designated, described or provided for in the within-

  mentioned Indenture.

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  

 

 B-5
 

 

 

[FORM OF REVERSE OF NOTE]

CENTRAL ILLINOIS LIGHT COMPANY

6.20% SENIOR SECURED NOTE DUE 2016

This Note is one of a duly authorized issue of 6.20%
Senior Secured Notes due 2016 (the “NOTES OF THIS SERIES”) of the Company
issued and to be issued under an Indenture dated as of June 1, 2006,
between the Company and The Bank of New York Trust Company, N.A., as trustee
(herein called the “TRUSTEE”, which term includes any successor Trustee under
the Indenture) and indentures supplemental thereto (collectively, the “INDENTURE”).
Under the Indenture, one or more series of notes may be issued and, as used
herein, the term “Notes” refers to the Notes of this Series. Reference is
hereby made to the Indenture for a more complete statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Noteholders and of the terms upon which the Notes are and
are to be authenticated and delivered. This Note is one of the series
designated on the face hereof, issued in the initial aggregate principal amount
of $54,000,000.

Prior to the Release Date (as hereinafter defined),
the Notes will be secured by first mortgage bonds (the “SENIOR NOTE FIRST
MORTGAGE BONDS”) delivered by the Company to the Trustee for the benefit of the
Holders of the Notes, issued under the Indenture of Mortgage or Deed of Trust,
dated as of April 1, 1933, from the Company to Deutsche Bank Trust Company
Americas (successor to Bankers Trust Company), as trustee (the “MORTGAGE
TRUSTEE”), as supplemented and modified (collectively, the “FIRST MORTGAGE”).
Reference is made to the First Mortgage and the Indenture for a description of
the rights of the Trustee as holder of the Senior Note First Mortgage Bonds,
the property mortgaged and pledged, the nature and extent of the security and
the rights of the holders of first mortgage bonds, under the First Mortgage and
the rights of the Company and of the Mortgage Trustee in respect thereof, the duties
and immunities of the Mortgage Trustee and the terms and conditions upon which
the Senior Note First Mortgage Bonds are secured and the circumstances under
which additional first mortgage bonds may be issued.

From and after such time as all first mortgage bonds
(other than Senior Note First Mortgage Bonds and other first mortgage bonds
securing a related series of Notes) issued under the First Mortgage have been
retired through payment, redemption or otherwise at, before or after the
maturity thereof (the “RELEASE
DATE”), the Senior Note First Mortgage Bonds shall cease to secure the
Notes in any manner. In certain circumstances prior to the Release Date as
provided in the Indenture, the Company is permitted to reduce the aggregate
principal amount of a series of Senior Note First Mortgage Bonds held by the
Trustee, but in no event prior to the Release Date to an amount less than the
aggregate outstanding principal amount of the series of Notes initially issued
contemporaneously with such Senior Note First Mortgage Bonds.

So long as any Note of this Series is
Outstanding, the Company will not, prior to June 15, 2009, optionally
redeem, purchase or otherwise retire in full its outstanding First Mortgage
Bonds not subject to the release provisions of the Indenture.

 B-6
 

 

 

Each Note of this Series shall be dated and
issued as of the date of its authentication by the Trustee and shall bear an
Original Issue Date. Each Note of this Series issued upon transfer,
exchange or substitution of such Note shall bear the Original Issue Date of
such transferred, exchanged or substituted Note, as the case may be.

Interest on this Note will accrue from and including
the Original Issue Date specified above to, but excluding, December 15,
2006, and thereafter, from and including each Interest Payment Date to, but
excluding, the next succeeding Interest Payment Date or the Maturity Date, as
the case may be.

Interest payments for this Note shall be computed on
the basis of a 360-day year consisting of twelve 30-day months. If
any Interest Payment Date falls on a day that is not a Business Day, the
Interest Payment Date will be the next succeeding Business Day (and without any
interest or other payment in respect of any such delay). If the Maturity Date
of this Note or any redemption date falls on a day that is not a Business Day,
the payment of principal, premium, if any, and interest will be made on the
next succeeding Business Day, and no interest on such payment shall accrue for
the period from and after the Maturity Date or such redemption date.

All or a portion of the Notes of this Series may
be redeemed at the option of the Company at any time or from time to time. The
redemption price for the Notes of this Series to be redeemed on any
redemption date will be equal to the greater of the following amounts: (a) 100%
of the principal amount of the Notes of this Series being redeemed on the
redemption date; or (b) the sum of the present values of the remaining
scheduled payments of principal and interest on the Notes of this Series being
redeemed on that redemption date (not including any portion of any payments of
interest accrued to the redemption date) discounted to the redemption date on a
semiannual basis at the Adjusted Treasury Rate (as defined below) plus 20 basis
points, as determined by the Reference Treasury Dealer (as defined below);
plus, in each case, accrued and unpaid interest thereon to the redemption date.
Notwithstanding the foregoing, installments of interest on Notes of this Series that
are due and payable on Interest Payment Dates falling on or prior to a
redemption date will be payable on the Interest Payment Date to the Holder of
this Note as of the close of business on the relevant Regular Record Date. The
redemption price will be calculated on the basis of a 360-day year
consisting of twelve 30-day months.

The Company shall mail notice of any redemption at
least 30 days but not more than 60 days before the redemption date to each
Holder of the Notes of this Series to be redeemed. Unless the Company
defaults in payment of the redemption price, on and after the redemption date,
interest will cease to accrue on the Notes of this Series or portions
thereof called for redemption.

“ADJUSTED TREASURY RATE” means, with respect to any
redemption date, the rate per annum equal to the semiannual equivalent yield to
maturity of the Comparable Treasury Issue, assuming a price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such redemption date.

“COMPARABLE TREASURY ISSUE” means the United States
Treasury security selected by the Reference Treasury Dealer as having a
maturity comparable to the remaining 

 B-7
 

 

 

term of the Notes of this
Series to be redeemed that would be utilized, at the time of selection and
in accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of such
Notes of this Series.

“COMPARABLE TREASURY PRICE” means, with respect to any
redemption date, (A) the average of the Reference Treasury Dealer
Quotations for such redemption date, after excluding the highest and lowest
such Reference Treasury Dealer Quotations, or (B) if the Trustee obtains
fewer than four such Reference Treasury Dealer Quotations, the average of all
such quotations, or (C) if only one Reference Treasury Dealer Quotation is
received, such quotation.

“REFERENCE TREASURY DEALER” means (A) Citigroup
Global Markets Inc. or Goldman, Sachs & Co. or their respective
affiliates which are primary U.S. Government securities dealers in New York
City (each, a “Primary Treasury Dealer”), and their respective successors;
provided, however, that if any of the foregoing shall cease to be a Primary
Treasury Dealer, the Company shall substitute therefor another Primary Treasury
Dealer; and (B) any other Primary Treasury Dealer(s) selected by the
Trustee after consultation with the Company.

“REFERENCE TREASURY DEALER QUOTATIONS” means, with
respect to each Reference Treasury Dealer and any redemption date, the average,
as determined by the Trustee, of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m.
(New York City time) on the third Business Day preceding such redemption date.

The Company, at its option, and subject to the terms
and conditions provided in the Indenture, will be discharged from any and all
obligations in respect of the Notes of this Series (except for certain
obligations including obligations to register the transfer or exchange of Notes
of this Series, replace stolen, lost or mutilated Notes of this Series,
maintain paying agencies and hold monies for payment in trust, all as set forth
in the Indenture) if the Company deposits with the Trustee money, U.S.
Government Obligations which through the payment of interest thereon and
principal thereof in accordance with their terms will provide money, or a
combination of money and U.S. Government Obligations, in any event in an amount
sufficient, without reinvestment, to pay all the principal of and any premium
and interest on the Notes of this Series on the dates such payments are
due in accordance with the terms of the Notes of this Series.

If an Event of Default shall occur and be continuing
with respect to the Notes, the principal of and interest on the Notes may be
declared due and payable in the manner and with the effect provided in the
Indenture and, upon such declaration, the Trustee shall demand the redemption
of the Senior Note First Mortgage Bonds to the extent provided in the
Indenture.

The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modifications of the rights and
obligations of the Company and the rights of the Noteholders under the
Indenture at any time by the Company and the Trustee with the consent of the
Holders of a majority in aggregate principal amount of the outstanding Notes.
Any such consent or waiver by the Holder of this Note shall be conclusive and
binding upon such Holder and upon all future Holders of this Note and of any
Note issued upon the registration of transfer 

 B-8
 

 

 

hereof or in exchange
therefor or in lieu thereof whether or not notation of such consent or waiver
is made upon this Note.

As set forth in and subject to the provisions of the
Indenture, no Holder of any Notes will have any right to institute any
proceeding with respect to the Indenture or for any remedy thereunder unless
such Holder shall have previously given to the Trustee written notice of a
continuing Event of Default with respect to such Notes, the Holders of a
majority in aggregate principal amount of the outstanding Notes affected by
such Event of Default shall have made written request and offered reasonable
indemnity to the Trustee to institute such proceeding as Trustee and the
Trustee shall have failed to institute such proceeding within 60 days;
provided, however, that such limitations do not apply to a suit instituted by
the Holder hereof for the enforcement of payment of the principal of and any
premium or interest on this Note on or after the respective due dates expressed
herein.

No reference herein to the Indenture and to provisions
of this Note or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and any
premium and interest on this Note at the times, places and rates and the coin
or currency prescribed in the Indenture.

As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Note is registrable in the
Note register. Upon surrender of this Note for registration or transfer at the
corporate trust office of the Trustee or such other office or agency as may be
designated by the Company in the Borough of Manhattan, the City and State of
New York, or St. Louis, Missouri, endorsed by or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Note
registrar, duly executed by the Holder hereof or the attorney in fact of such
Holder duly authorized in writing, one or more new Notes of this Series of
like tenor and of authorized denominations and for the same aggregate principal
amount will be issued to the designated transferee or transferees.

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

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

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

The Indenture and the Notes shall be governed by, and
construed in accordance with, the laws of the State of New York without regard
to conflicts of law principles thereof.

 B-9
 

 

 

All terms used in this Note that are defined in the
Indenture shall have the meanings assigned to them in the Indenture unless
otherwise indicated herein.

 B-10
 

 

 

ABBREVIATIONS

The following abbreviations, when used in the
inscription on the face of this instrument, shall be construed as though they
were written out in full according to applicable laws or regulations:

	
  TEN COM — as tenants in common

  	
  UNIF GIFT

  
	
   

  	
  MIN ACT -

  	
   

  	
  Custodian

  	
   

  
	
   

  	
   

  	
  (Cust)

  	
   

  	
  (Minor)

  
	
   

  	
   

  
	
  TEN ENT — as tenants by the

  entireties

  	
  Under Uniform Gifts to Minors

  
	
   

  	
   

  
	
  JT TEN — as joint tenants with right

  of survivorship and not as tenants in

  common

  	
   

  
	
   

  	
  State

  

 

Additional abbreviations may also be used 

though not in the above list.

 B-11
 

 

 

CERTIFICATE OF TRANSFER*

CENTRAL ILLINOIS LIGHT COMPANY

6.20% Senior Secured Notes due 2016

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

PLEASE
INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

Name and address of assignee must be printed or typewritten.

	
  $

  

 

principal amount of beneficial interest in the referenced Security of the
Company and does hereby irrevocably constitute and appoint

to transfer the said beneficial interest in such Security, with full
power of substitution in the premises.

The undersigned certifies that said beneficial interest in said Security is
being resold, pledged or otherwise transferred as follows:

(check one)

o                        to the Company;

o                        to a Person whom the undersigned reasonably
believes is a qualified institutional buyer within the meaning of Rule 144A
under the Securities Act of 1933, as amended (the “Securities Act”), purchasing
for its own account or for the account of a qualified institutional buyer to
whom notice is given that the resale, pledge or other transfer is being made in
reliance on Rule 144A;

o                        in an offshore transaction in accordance with Rule 903
or 904 of Regulation S under the Securities Act;

o                        to an institution that is an “accredited investor”
as defined in Rule 501(a)(1), (2), (3) or (7) under the
Securities Act that is acquiring this Security for investment purposes and not for
distribution (attach a copy of an Institutional Accredited Investor Certificate
in the form annexed signed by an authorized officer of the transferee);

o                        as otherwise permitted by the non-registration
legend appearing on this Security; or

o                        as otherwise agreed by the Company, confirmed in
writing to the Trustee, as follows: [describe]

	
  Dated:

  	
   

  	
   

  	
  Signature:

  	
   

  
	
   

  	
   

  
	
   

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

  

*                    Include
this form of Certificate of Transfer only in a Private Note.

 B-12
 

 

 

SIGNATURE GUARANTEE

Signatures must be guaranteed by an “eligible guarantor institution”
meeting the requirement of the registrar, which requirements include membership
or participation in the Security Transfer Agent Medallion Program (“STAMP”) or
such other “signature guarantee program” as may be determined by the registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

 B-13
 

 

 

[FORM OF INSTITUTIONAL ACCREDITED INVESTOR CERTIFICATE]*

[Transferor Name and Address]

Ladies
and Gentlemen:

In connection with our proposed purchase of 6.20% Senior Secured Notes
due 2016 (the “Notes”) issued by Central Illinois Light Company d/b/a
AmerenCILCO (the “Issuer”), we confirm that:

1.             We have received a copy of the
Offering Memorandum (the “Offering Memorandum”) relating to the Notes and such
other information as we deem necessary in order to make our investment decision.
We acknowledge that we have read and agree to the matters stated under the
caption NOTICE TO INVESTORS in such Offering Memorandum.

2.             We understand that any subsequent
transfer of the Notes is subject to certain restrictions and conditions set
forth in the indenture relating to the Notes (the “Indenture”) and as set forth
under NOTICE TO INVESTORS in the Offering Memorandum and the undersigned agrees
to be bound by, and not to resell, pledge or otherwise transfer the Notes
except in compliance with such restrictions and conditions and the Securities
Act of 1933, as amended (the “Securities Act”).

3.             We
understand that the offer and sale of the Notes have not been registered under
the Securities Act, and that the Notes may not be offered or sold except as
permitted in the following sentence. We agree, on our own behalf and on behalf
of any accounts for which we are acting as hereinafter stated, that if we sell
any Notes, we will do so only (A) to the Issuer, (B) so long as the
Notes are eligible for resale pursuant to Rule 144A under the Securities
Act (“Rule 144A”), to a person whom we reasonably believe is a “qualified
institutional buyer” within the meaning of Rule 144A that purchases for
its own account or for the account of a qualified institutional buyer to whom
notice is given that the resale, pledge or other transfer is being made in
reliance on Rule 144A, (C) to an institutional “accredited investor”
(as defined below) that, prior to such transfer, furnishes to the Trustee (as
defined in the Indenture) a signed letter containing certain representations
and agreements relating to the restrictions on transfer of the Notes
(substantially in the form of this letter), (D) in an offshore transaction
in accordance with Rule 904 of Regulation S under the Securities Act, (E) pursuant
to the exemption from registration provided by Rule 144 under the
Securities Act (if available), or (F) in accordance with another
applicable exemption from the registration requirements of, or in a transaction
not subject to, the Securities Act or pursuant to an effective registration
statement under the Securities Act, and we further agree to provide 

*                    Include
this form only in a Private Note.

 B-14
 

 

 

to any person purchasing any of
the Notes from us a notice advising such purchaser that resales of the Notes
are restricted as stated herein.

4.             We understand that, on any proposed
resale of any Notes, we will be required to furnish to the Trustee and the
Issuer such certification and other information as the Trustee and the Issuer
may reasonably require to confirm that the proposed sale complies with the
foregoing restrictions. We further understand that the Notes purchased by us
will bear a legend to the foregoing effect.

5.             We are an institutional “accredited
investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under
the Securities Act) and have such knowledge and experience in financial and
business matters as to be capable of evaluating the merits and risks of our
investment in the Notes, and we and any accounts for which we are acting are
each able to bear the economic risk of our or its investment.

6.             We are acquiring the Notes
purchased by us for our own account or for one or more accounts (each of which
is an institutional “accredited investor”) as to each of which we exercise sole
investment discretion in each case for investment and not with a view to, or
for offer or sale in connection with, any distribution in violation of the
Securities Act.

You, the Issuer and the Trustee are entitled to rely
upon this letter and are irrevocably authorized to produce this letter or a
copy hereof to any interested party in any administrative or legal proceeding
or official inquiry with respect to the matters covered hereby.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 B-15

 

EXHIBIT C

FORM OF SENIOR NOTE SERIES 2036 GLOBAL NOTE

[depository legend]

THIS SECURITY IS A GLOBAL
NOTE REGISTERED IN THE NAME OF THE DEPOSITARY (REFERRED TO HEREIN) OR A NOMINEE
THEREOF AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE FOR THE INDIVIDUAL NOTES
REPRESENTED HEREBY AS PROVIDED IN THE INDENTURE REFERRED TO BELOW, THIS
SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY
OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE
TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS
THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK), TO THE TRUSTEE FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT
IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

[non-registration legend to be included on Private Notes]

THIS SECURITY HAS NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”). THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, AGREES FOR THE BENEFIT
OF THE COMPANY THAT THIS SECURITY MAY NOT BE RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED PRIOR TO THE DATE WHICH IS TWO YEARS AFTER THE LATER OF THE
ORIGINAL ISSUANCE DATE THEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY
AFFILIATE THEREOF WAS THE OWNER OF THIS SECURITY OR THE EXPIRATION OF SUCH
SHORTER PERIOD AS MAY BE PRESCRIBED BY RULE 144(k), OR ANY SUCCESSOR
PROVISION THEREOF, UNDER THE SECURITIES ACT (THE “RESALE RESTRICTION
TERMINATION DATE”) OTHER THAN (1) TO THE COMPANY, (2) IN A
TRANSACTION ENTITLED TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT, (3) SO LONG AS THIS SECURITY IS ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A
PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
WITHIN THE MEANING OF RULE 144A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A (AS
INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER
ATTACHED TO THIS SECURITY), (4) IN AN

 C-1
 

 

OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR 904 OF REGULATION S
UNDER THE SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON
THE CERTIFICATE OF TRANSFER ATTACHED TO THIS SECURITY), (5) TO AN
INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a)(1), (2),
(3) OR (7) UNDER THE SECURITIES ACT (AS INDICATED BY THE BOX CHECKED
BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ATTACHED TO THIS SECURITY)
THAT IS ACQUIRING THIS SECURITY FOR INVESTMENT PURPOSES AND NOT FOR
DISTRIBUTION, AND A CERTIFICATE IN THE FORM ATTACHED TO THIS SECURITY IS
DELIVERED BY THE TRANSFEREE TO THE COMPANY AND THE TRUSTEE OR (6) IN
ACCORDANCE WITH ANOTHER APPLICABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES. THE FOREGOING RESTRICTIONS ON RESALE WILL NOT APPLY SUBSEQUENT TO THE
RESALE RESTRICTION TERMINATION DATE. THE HOLDER OF THIS SECURITY ACKNOWLEDGES
THAT THE COMPANY RESERVES THE RIGHT PRIOR TO ANY OFFER, SALE OR OTHER TRANSFER (1) PURSUANT
TO CLAUSE (2) PRIOR TO THE RESALE RESTRICTION TERMINATION DATE TO REQUIRE
THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS OR OTHER INFORMATION
SATISFACTORY TO THE COMPANY AND (2) IN EACH OF THE FOREGOING CASES, TO
REQUIRE THAT A CERTIFICATE AS TO COMPLIANCE WITH CERTAIN CONDITIONS TO TRANSFER
IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE COMPANY.

[Regulation S legend
to be included on Private Notes]

BY ITS ACQUISITION
HEREOF, EACH HOLDER OF THIS SECURITY, AND EACH PERSON THAT ACQUIRES A
BENEFICIAL INTEREST IN SUCH SECURITY, AGREES THAT PRIOR TO THE EXPIRATION OF
THE DISTRIBUTION COMPLIANCE PERIOD (AS DEFINED IN THE COMPANY ORDER
ESTABLISHING THE TERMS OF THIS SECURITY), BENEFICIAL INTERESTS IN THIS SECURITY
MAY ONLY BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED (A) INSIDE THE
UNITED STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH
RULE 144A UNDER THE SECURITIES ACT OF 1933 OR (B) OUTSIDE THE UNITED
STATES IN COMPLIANCE WITH RULE 903 OR 904 UNDER THE SECURITIES ACT OF
1933 AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF THE
STATES OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION.

[registration rights
legend to be included on Private Notes]

BY ITS ACCEPTANCE OF THE
SECURITIES EVIDENCED HEREBY OR A BENEFICIAL INTEREST IN SUCH SECURITIES, THE
HOLDER OF, AND ANY PERSON THAT ACQUIRES A BENEFICIAL INTEREST IN, SUCH
SECURITIES AGREES TO BE BOUND BY THE PROVISIONS OF THE REGISTRATION RIGHTS
AGREEMENT (THE

 C-2
 

 

“REGISTRATION RIGHTS AGREEMENT”) DATED AS OF JUNE 14, 2006 AND
RELATING TO THE REGISTRATION UNDER THE SECURITIES ACT OF SECURITIES
EXCHANGEABLE FOR THE SECURITIES EVIDENCED HEREBY AND REGISTRATION OF THE
SECURITIES EVIDENCED HEREBY.

 C-3
 

 

Illinois Commerce
Commission ID No.: 6351

CENTRAL
ILLINOIS LIGHT COMPANY

6.70% SENIOR SECURED NOTE DUE 2036

	
  CUSIP: [153645AY2] [U15400AB7]

  	
  NUMBER: 1

  
	
  ISIN:  [US153645AY24]
  [USU15400AB79]

  	
   

  
	
   

  	
   

  
	
  ORIGINAL ISSUE DATE: June 14, 2006                          

  	
  PRINCIPAL AMOUNT: Listed on Schedule

  
	
   

  	
   

  	
  I hereto

  
	
   

  	
   

  
	
  INTEREST RATE: 6.70%

  	
  MATURITY DATE: June 15, 2036

  

CENTRAL ILLINOIS LIGHT COMPANY, a corporation of the
State of Illinois (the “COMPANY”), for value received hereby promises to pay to
CEDE & CO. or registered assigns, the principal amount specified above
on the Maturity Date set forth above, and to pay interest thereon from and
including the Original Issue Date specified above or from and including the
most recent Interest Payment Date to which interest has been paid or duly
provided for, semi-annually in arrears on June 15th and December 15th in
each year, commencing December 15, 2006, and on the Maturity Date, at the
per annum interest rate set forth above until the principal hereof is paid or
made available for payment. [If the Company does not comply with certain of its
obligations under the Registration Rights Agreement, this bond shall, in
accordance with Section 2(e) of the Registration Rights Agreement,
bear additional interest (“Additional Interest”) in addition to the interest
provided for in the immediately preceding sentence. For purposes of this Note,
the term “interest” shall be deemed to include interest provided for in the
second immediately preceding sentence and Additional Interest, if any.]* No
interest shall accrue on the Maturity Date, so long as the principal amount of
this Note is paid in full on the Maturity Date. The interest so payable and
punctually paid or duly provided for on any such Interest Payment Date will
(except for interest payable on the Maturity Date set forth above or, if
applicable, upon redemption or acceleration), as provided in the Indenture (as
defined below), be paid to the Person in whose name this Note is registered at
the close of business on the Regular Record Date for such interest, which shall
be June 1 or December 1, as the case may be, next preceding such
Interest Payment Date; provided, that the first Interest Payment Date for any
part of this Note, the Original Issue Date of which is after a Regular Record
Date but prior to the applicable Interest Payment Date, shall be the Interest
Payment Date following the next succeeding Regular Record Date; and provided,
that interest payable on the Maturity Date set forth above or, if applicable,
upon redemption or acceleration, shall be payable to the Person to whom
principal shall be payable. Except as otherwise provided in the Indenture, any
such interest not so punctually paid or duly provided for will forthwith cease
to be payable to the Holder on such Regular Record Date and shall be paid to
the Person in whose name this Note is registered at the close of business on a
Special Record Date for the payment of such defaulted interest to be fixed by
the Trustee, notice whereof shall be given to Noteholders not more than fifteen
days nor fewer than ten days prior to such Special Record Date. Payment of the
principal

*              Include bracketed language only in
a Private Note.

 C-4
 

 

of and interest and
premium on this Note shall be payable pursuant to Section 2.12(a) of
the Indenture.

This Note is a Global
Note in respect of a duly authorized issue of 6.70% Senior Secured Notes due
2036 (the “NOTES OF THIS SERIES”, which term includes any Global Notes
representing such Notes) of the Company issued and to be issued under an
Indenture dated as of June 1, 2006 between the Company and The Bank of New
York Trust Company, N.A., as trustee (herein called the “TRUSTEE”, which term
includes any successor Trustee under the Indenture) and indentures supplemental
thereto (collectively, the “INDENTURE”). Under the Indenture, one or more
series of notes may be issued and, as used herein, the term “Notes” refers to
the Notes of this Series. Reference is hereby made to the Indenture for a more
complete statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Noteholders and of
the terms upon which the Notes are and are to be authenticated and delivered.
This Note has been issued in respect of the series designated on the first page hereof,
issued in the initial aggregate principal amount of $42,000,000.

Prior to the Release Date
(as hereinafter defined), the Notes will be secured by first mortgage bonds
(the “SENIOR NOTE FIRST MORTGAGE BONDS”) delivered by the Company to the
Trustee for the benefit of the Holders of the Notes, issued under the Indenture
of Mortgage or Deed of Trust, dated as of April 1, 1933, from the Company
to Deutsche Bank Trust Company Americas (successor to Bankers Trust Company),
as trustee (the “MORTGAGE TRUSTEE”), as supplemented and modified
(collectively, the “FIRST MORTGAGE”). Reference is made to the First Mortgage
and the Indenture for a description of the rights of the Trustee as holder of
the Senior Note First Mortgage Bonds, the property mortgaged and pledged, the
nature and extent of the security and the rights of the holders of first
mortgage bonds, under the First Mortgage and the rights of the Company and of
the Mortgage Trustee in respect thereof, the duties and immunities of the
Mortgage Trustee and the terms and conditions upon which the Senior Note First
Mortgage Bonds are secured and the circumstances under which additional first
mortgage bonds may be issued.

From and after such time
as all first mortgage bonds (other than Senior Note First Mortgage Bonds and
other first mortgage bonds securing a related series of Notes) issued under the
First Mortgage have been retired through payment, redemption or otherwise at,
before or after the maturity thereof (the “RELEASE DATE”), the Senior Note
First Mortgage Bonds shall cease to secure the Notes in any manner. In certain
circumstances prior to the Release Date as provided in the Indenture, the
Company is permitted to reduce the aggregate principal amount of a series of
Senior Note First Mortgage Bonds held by the Trustee, but in no event prior to
the Release Date to an amount less than the aggregate outstanding principal
amount of the series of Notes initially issued contemporaneously with such
Senior Note First Mortgage Bonds.

So long as any Note of
this Series is Outstanding, the Company will not, prior to June 15,
2009, optionally redeem, purchase or otherwise retire in full its outstanding
First Mortgage Bonds not subject to the release provisions of the Indenture.

Each Note of this Series shall
be dated and issued as of the date of its authentication by the Trustee and
shall bear an Original Issue Date. Each Note of this Series issued upon
transfer,

 C-5
 

 

exchange or substitution
of such Note shall bear the Original Issue Date of such transferred, exchanged
or substituted Note, as the case may be.

Interest on this Note
will accrue from and including the Original Issue Date specified above to, but
excluding, December 15, 2006, and thereafter, from and including each
Interest Payment Date to, but excluding, the next succeeding Interest Payment
Date or the Maturity Date, as the case may be.

Interest payments for
this Note shall be computed on the basis of a 360-day year consisting of
twelve 30-day months. If any Interest Payment Date falls on a day that is
not a Business Day, the Interest Payment Date will be the next succeeding
Business Day (and without any interest or other payment in respect of any such
delay). If the Maturity Date of this Note or any redemption date falls on a day
that is not a Business Day, the payment of principal, premium, if any, and
interest will be made on the next succeeding Business Day, and no interest on
such payment shall accrue for the period from and after the Maturity Date or
such redemption date.

All or a portion of the
Notes of this Series may be redeemed at the option of the Company at any
time or from time to time. The redemption price for the Notes of this Series to
be redeemed on any redemption date will be equal to the greater of the
following amounts: (a) 100% of the principal amount of the Notes of this Series being
redeemed on the redemption date; or (b) the sum of the present values of
the remaining scheduled payments of principal and interest on the Notes of this
Series being redeemed on that redemption date (not including any portion
of any payments of interest accrued to the redemption date) discounted to the
redemption date on a semiannual basis at the Adjusted Treasury Rate (as defined
below) plus 30 basis points, as determined by the Reference Treasury Dealer (as
defined below); plus, in each case, accrued and unpaid interest thereon to the
redemption date. Notwithstanding the foregoing, installments of interest on
Notes of this Series that are due and payable on Interest Payment Dates
falling on or prior to a redemption date will be payable on the Interest
Payment Date to the Holder of this Note as of the close of business on the
relevant Regular Record Date. The redemption price will be calculated on the
basis of a 360-day year consisting of twelve 30-day months.

The Company shall mail
notice of any redemption at least 30 days but not more than 60 days before the
redemption date to each Holder of the Notes of this Series to be redeemed.
Unless the Company defaults in payment of the redemption price, on and after
the redemption date, interest will cease to accrue on the Notes of this Series or
portions thereof called for redemption.

“ADJUSTED TREASURY RATE”
means, with respect to any redemption date, the rate per annum equal to the
semiannual equivalent yield to maturity of the Comparable Treasury Issue,
assuming a price for the Comparable Treasury Issue (expressed as a percentage
of its principal amount) equal to the Comparable Treasury Price for such
redemption date.

“COMPARABLE TREASURY
ISSUE” means the United States Treasury security selected by the Reference
Treasury Dealer as having a maturity comparable to the remaining term of the
Notes of this Series to be redeemed that would be utilized, at the time of
selection

 C-6
 

 

and in accordance with
customary financial practice, in pricing new issues of corporate debt
securities of comparable maturity to the remaining term of such Notes of this
Series.

“COMPARABLE TREASURY
PRICE” means, with respect to any redemption date, (A) the average of the
Reference Treasury Dealer Quotations for such redemption date, after excluding
the highest and lowest such Reference Treasury Dealer Quotations, or (B) if
the Trustee obtains fewer than four such Reference Treasury Dealer Quotations,
the average of all such quotations, or (C) if only one Reference Treasury
Dealer Quotation is received, such quotation.

“REFERENCE TREASURY
DEALER” means (A) Citigroup Global Markets Inc. or Goldman, Sachs &
Co. or their respective affiliates which are primary U.S. Government securities
dealers in New York City (each, a “Primary Treasury Dealer”), and their
respective successors; provided, however, that if any of the foregoing shall
cease to be a Primary Treasury Dealer, the Company shall substitute therefor
another Primary Treasury Dealer; and (B) any other Primary Treasury Dealer(s) selected
by the Trustee after consultation with the Company.

“REFERENCE TREASURY
DEALER QUOTATIONS” means, with respect to each Reference Treasury Dealer and
any redemption date, the average, as determined by the Trustee, of the bid and
asked prices for the Comparable Treasury Issue (expressed in each case as a
percentage of its principal amount) quoted in writing to the Trustee by such
Reference Treasury Dealer at 5:00 p.m. (New York City time) on the third
Business Day preceding such redemption date.

The Company, at
its option, and subject to the terms and conditions provided in the Indenture,
will be discharged from any and all obligations in respect of the Notes of this
Series (except for certain obligations including obligations to register
the transfer or exchange of Notes of this Series, replace stolen, lost or
mutilated Notes of this Series, maintain paying agencies and hold monies for payment
in trust, all as set forth in the Indenture) if the Company deposits with the
Trustee money, U.S. Government Obligations which through the payment of
interest thereon and principal thereof in accordance with their terms will
provide money, or a combination of money and U.S. Government Obligations, in
any event in an amount sufficient, without reinvestment, to pay all the
principal of and any premium and interest on the Notes of this Series on
the dates such payments are due in accordance with the terms of the Notes of
this Series.

If an Event of Default
shall occur and be continuing with respect to the Notes, the principal of and
interest on the Notes may be declared due and payable in the manner and with
the effect provided in the Indenture and, upon such declaration, the Trustee
shall demand the redemption of the Senior Note First Mortgage Bonds to the
extent provided in the Indenture.

The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the
modifications of the rights and obligations of the Company and the rights of
the Noteholders under the Indenture at any time by the Company and the Trustee
with the consent of the Holders of a majority in aggregate principal amount of
the outstanding Notes. Any such consent or waiver by the Holder of this Note
shall be conclusive and binding upon such Holder and upon all future Holders of
this Note and of any Note issued upon the registration of transfer

 C-7
 

 

hereof or in
exchange therefor or in lieu thereof whether or not notation of such consent or
waiver is made upon this Note.

As set forth in and
subject to the provisions of the Indenture, no Holder of any Notes will have
any right to institute any proceeding with respect to the Indenture or for any
remedy thereunder unless such Holder shall have previously given to the Trustee
written notice of a continuing Event of Default with respect to such Notes, the
Holders of a majority in aggregate principal amount of the outstanding Notes
affected by such Event of Default shall have made written request and offered
reasonable indemnity to the Trustee to institute such proceeding as Trustee and
the Trustee shall have failed to institute such proceeding within 60 days;
provided, however, that such limitations do not apply to a suit instituted by
the Holder hereof for the enforcement of payment of the principal of and any
premium or interest on this Note on or after the respective due dates expressed
herein.

No reference herein to
the Indenture and to provisions of this Note or of the Indenture shall alter or
impair the obligation of the Company, which is absolute and unconditional, to
pay the principal of and any premium and interest on this Note at the times,
places and rates and the coin or currency prescribed in the Indenture.

As provided in the
Indenture and subject to certain limitations therein set forth, this Note may
be transferred only as permitted by the legend hereto and the provisions of the
Indenture.

The Indenture and the
Notes shall be governed by, and construed in accordance with, the laws of the
State of New York without regard to conflicts of law principles thereof.

Unless the certificate of
authentication hereon has been executed by the Trustee, directly or through an
Authenticating Agent by manual signature of an authorized officer, this Note
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

All terms used in this
Note that are defined in the Indenture shall have the meanings assigned to them
in the Indenture unless otherwise indicated herein.

 C-8
 

 

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

	
  

  	
  CENTRAL ILLINOIS LIGHT COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President and Treasurer

  
	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Assistant Secretary

  

TRUSTEE’S
CERTIFICATE

OF AUTHENTICATION

Dated:
June 14, 2006

This
Note is one of the Notes of the series herein

designated, described or provided for in
the within-

mentioned 
Indenture.

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

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  

 

 C-9
 

 

SCHEDULE I

[144A]*[REGULATION S]* GLOBAL SECURITY

The
initial principal amount of Notes evidenced by this Global Note is $                     .

CHANGES
TO PRINCIPAL AMOUNT OF NOTES EVIDENCED BY GLOBAL NOTE

	
  Date

  	
   

  	
   

  	
   

  	
  Principal Amount of

  Notes by which this

  Global Note is to be

  Reduced or Increased,

  and Reason for

  Reduction or Increase

  	
   

  	
   

  	
   

  	
  Remaining Principal 

  Amount of Notes 

  Represented by this

  Global Note

  	
   

  	
   

  	
   

  	
  Notation Made by

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

*              Include bracketed language only in a Private Note.

 C-10
 

 

EXHIBIT
C-1

CERTIFICATE
OF TRANSFER*

 

CENTRAL
ILLINOIS LIGHT COMPANY

 

6.70%
Senior Secured Notes due 2036

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

PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

Name
and address of assignee must be printed or typewritten.

$

principal amount of beneficial interest in the
referenced Security of the Company and does hereby irrevocably constitute and
appoint to transfer the said beneficial interest in such Security, with full
power of substitution in the premises.

The undersigned certifies that said beneficial
interest in said Security is being resold, pledged or otherwise transferred as
follows:

(check one)

o                        to the Company;

o                        to a Person whom the undersigned reasonably
believes is a qualified institutional buyer within the meaning of Rule 144A
under the Securities Act of 1933, as amended (the “Securities Act”), purchasing
for its own account or for the account of a qualified institutional buyer to
whom notice is given that the resale, pledge or other transfer is being made in
reliance on Rule 144A;

o                        in an offshore transaction in accordance with Rule 903
or 904 of Regulation S under the Securities Act;

o                        to an institution that is an “accredited investor”
as defined in Rule 501(a)(1), (2), (3) or (7) under the
Securities Act that is acquiring this Security for investment purposes and not
for distribution (attach a copy of an Institutional Accredited Investor
Certificate in the form annexed signed by an authorized officer of the
transferee);

o                        as otherwise permitted by the non-registration
legend appearing on this Security; or

o                        as otherwise agreed by the Company, confirmed in
writing to the Trustee, as follows: [describe]

	
  Dated:

  	
   

  	
   

  	
  Signature:

  	
   

  
	
   

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

  

*              Include
this form of Certificate of Transfer only in a Private Note.

 C-11
 

 

SIGNATURE
GUARANTEE

Signatures
must be guaranteed by an “eligible guarantor institution” meeting the
requirement of the registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program (“STAMP”) or
such other “signature guarantee program” as may be determined by the registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

 C-12
 

 

[FORM OF INSTITUTIONAL ACCREDITED INVESTOR CERTIFICATE]*

[Transferor Name and Address]

Ladies
and Gentlemen:

In
connection with our proposed purchase of 6.70% Senior Secured Notes due 2036
(the “Notes”) issued by Central Illinois Light Company d/b/a AmerenCILCO (the “Issuer”),
we confirm that:

1.             We have received a copy of the Offering Memorandum (the “Offering
Memorandum”) relating to the Notes and such other information as we deem
necessary in order to make our investment decision. We acknowledge that we have
read and agree to the matters stated under the caption NOTICE TO INVESTORS in
such Offering Memorandum.

2.             We understand that any subsequent transfer of the Notes
is subject to certain restrictions and conditions set forth in the indenture
relating to the Notes (the “Indenture”) and as set forth under NOTICE TO
INVESTORS in the Offering Memorandum and the undersigned agrees to be bound by,
and not to resell, pledge or otherwise transfer the Notes except in compliance
with such restrictions and conditions and the Securities Act of 1933, as
amended (the “Securities Act”).

3.             We understand that the offer and sale of the Notes have
not been registered under the Securities Act, and that the Notes may not be
offered or sold except as permitted in the following sentence. We agree, on our
own behalf and on behalf of any accounts for which we are acting as hereinafter
stated, that if we sell any Notes, we will do so only (A) to the Issuer, (B) so
long as the Notes are eligible for resale pursuant to Rule 144A under the
Securities Act (“Rule 144A”), to a person whom we reasonably believe is a “qualified
institutional buyer” within the meaning of Rule 144A that purchases for
its own account or for the account of a qualified institutional buyer to whom
notice is given that the resale, pledge or other transfer is being made in
reliance on Rule 144A, (C) to an institutional “accredited investor”
(as defined below) that, prior to such transfer, furnishes to the Trustee (as
defined in the Indenture) a signed letter containing certain representations
and agreements relating to the restrictions on transfer of the Notes
(substantially in the form of this letter), (D) in an offshore transaction
in accordance with Rule 904 of Regulation S under the Securities Act, (E) pursuant
to the exemption from registration provided by Rule 144 under the
Securities Act (if available), or (F) in accordance with another
applicable exemption from the registration requirements of, or in a transaction
not subject to, the Securities Act or pursuant to an effective registration
statement under the Securities Act, and we further agree to provide to any
person purchasing any of the Notes from us a notice advising such purchaser
that resales of the Notes are restricted as stated herein.

* Include this form
only in a Private Note.

 C-13
 

 

4.             We understand that, on any proposed resale of any Notes,
we will be required to furnish to the Trustee and the Issuer such certification
and other information as the Trustee and the Issuer may reasonably require to
confirm that the proposed sale complies with the foregoing restrictions. We
further understand that the Notes purchased by us will bear a legend to the
foregoing effect.

5.             We are an institutional “accredited investor” (as
defined in Rule 501(a)(1), (2), (3) or (7) under the Securities
Act) and have such knowledge and experience in financial and business matters
as to be capable of evaluating the merits and risks of our investment in the
Notes, and we and any accounts for which we are acting are each able to bear
the economic risk of our or its investment.

6.             We are acquiring the Notes purchased by us for our own
account or for one or more accounts (each of which is an institutional “accredited
investor”) as to each of which we exercise sole investment discretion in each
case for investment and not with a view to, or for offer or sale in connection
with, any distribution in violation of the Securities Act.

You, the Issuer and the Trustee are entitled to rely upon this letter and
are irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 C-14

 

EXHIBIT D

FORM OF SENIOR NOTE SERIES 2036 DEFINITIVE NOTE

[non-registration legend to be included on Private Notes]

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”). THE HOLDER HEREOF, BY PURCHASING THIS
SECURITY, AGREES FOR THE BENEFIT OF THE COMPANY THAT THIS SECURITY MAY NOT
BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED PRIOR TO THE DATE WHICH IS TWO
YEARS AFTER THE LATER OF THE ORIGINAL ISSUANCE DATE THEREOF AND THE LAST DATE
ON WHICH THE COMPANY OR ANY AFFILIATE THEREOF WAS THE OWNER OF THIS SECURITY OR
THE EXPIRATION OF SUCH SHORTER PERIOD AS MAY BE PRESCRIBED BY RULE 144(k),
OR ANY SUCCESSOR PROVISION THEREOF, UNDER THE SECURITIES ACT (THE “RESALE
RESTRICTION TERMINATION DATE”) OTHER THAN (1) TO THE COMPANY, (2) IN
A TRANSACTION ENTITLED TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT, (3) SO LONG AS THIS SECURITY IS ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A
PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
WITHIN THE MEANING OF RULE 144A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A (AS
INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER
ON THE REVERSE OF THIS SECURITY), (4) IN AN OFFSHORE TRANSACTION IN
ACCORDANCE WITH RULE 903 OR 904 OF REGULATION S UNDER THE SECURITIES ACT (AS
INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER
ON THE REVERSE OF THIS SECURITY), (5) TO AN INSTITUTION THAT IS AN “ACCREDITED
INVESTOR” AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) UNDER THE
SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE
CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS SECURITY) THAT IS ACQUIRING THIS
SECURITY FOR INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION, AND A CERTIFICATE IN
THE FORM ATTACHED TO THIS SECURITY IS DELIVERED BY THE TRANSFEREE TO THE
COMPANY AND THE TRUSTEE OR (6) IN ACCORDANCE WITH ANOTHER APPLICABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT OR PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. AN INSTITUTIONAL
ACCREDITED INVESTOR HOLDING THIS SECURITY AGREES IT WILL FURNISH TO THE COMPANY
AND THE TRUSTEE SUCH CERTIFICATES AND OTHER INFORMATION AS THEY MAY REASONABLY
REQUIRE TO CONFIRM THAT ANY TRANSFER BY IT OF THIS SECURITY COMPLIES WITH THE
FOREGOING RESTRICTIONS. THE FOREGOING RESTRICTIONS ON RESALE WILL NOT APPLY
SUBSEQUENT TO THE RESALE RESTRICTION TERMINATION DATE. THE HOLDER OF THIS
SECURITY ACKNOWLEDGES THAT THE COMPANY RESERVES THE RIGHT 

 D-1
 

 

PRIOR TO ANY
OFFER, SALE OR OTHER TRANSFER (1) PURSUANT TO CLAUSE (2) PRIOR TO THE
RESALE RESTRICTION TERMINATION DATE TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATIONS OR OTHER INFORMATION SATISFACTORY TO THE COMPANY AND (2) IN
EACH OF THE FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE AS TO COMPLIANCE
WITH CERTAIN CONDITIONS TO TRANSFER IS COMPLETED AND DELIVERED BY THE
TRANSFEROR TO THE COMPANY.

[Regulation S legend
to be included on Private Notes]

BY ITS ACQUISITION HEREOF, EACH HOLDER OF THIS SECURITY, AND EACH
PERSON THAT ACQUIRES A BENEFICIAL INTEREST IN SUCH SECURITY, AGREES THAT PRIOR
TO THE EXPIRATION OF THE DISTRIBUTION COMPLIANCE PERIOD (AS DEFINED IN THE
COMPANY ORDER ESTABLISHING THE TERMS OF THIS SECURITY), BENEFICIAL INTERESTS IN
THIS SECURITY MAY ONLY BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED (A) INSIDE
THE UNITED STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH
RULE 144A UNDER THE SECURITIES ACT OF 1933 OR (B) OUTSIDE THE UNITED
STATES IN COMPLIANCE WITH RULE 903 OR 904 UNDER THE SECURITIES ACT OF
1933 AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF
THE STATES OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION.

[registration rights
legend to be included on Private Notes]

BY ITS ACCEPTANCE OF THE SECURITIES EVIDENCED HEREBY OR A BENEFICIAL
INTEREST IN SUCH SECURITIES, THE HOLDER OF, AND ANY PERSON THAT ACQUIRES A
BENEFICIAL INTEREST IN, SUCH SECURITIES AGREES TO BE BOUND BY THE PROVISIONS OF
THE REGISTRATION RIGHTS AGREEMENT (THE “REGISTRATION RIGHTS AGREEMENT”) DATED
AS OF JUNE 14, 2006 AND RELATING TO THE REGISTRATION UNDER THE SECURITIES
ACT OF SECURITIES EXCHANGEABLE FOR THE SECURITIES EVIDENCED HEREBY AND
REGISTRATION OF THE SECURITIES EVIDENCED HEREBY.

 D-2
 

 

Illinois Commerce
Commission ID No.: 6351

CENTRAL
ILLINOIS LIGHT COMPANY

6.70% SENIOR SECURED NOTE DUE 2036

	
  CUSIP: 153645AZ9 

  ISIN: US153645AZ98

  	
  PRINCIPAL AMOUNT: $42,000,000

  
	
   

  	
   

  
	
  ORIGINAL ISSUE DATE: June 14, 2006

  	
  MATURITY DATE: June 15,
  2036

  
	
   

  	
   

  
	
  INTEREST RATE: 6.70%

  	
  NUMBER: 1

  

CENTRAL ILLINOIS LIGHT
COMPANY, a corporation of the State of Illinois (the “COMPANY”), for value
received hereby promises to pay to CEDE & CO. or registered assigns,
the principal amount specified above on the Maturity Date set forth above, and
to pay interest thereon from and including the Original Issue Date specified
above or from and including the most recent Interest Payment Date to which interest
has been paid or duly provided for, semi-annually in arrears on June 15th and December 15th in
each year, commencing December 15, 2006, and on the Maturity Date, at the
per annum interest rate set forth above until the principal hereof is paid or
made available for payment. [If the Company does not comply with certain of its
obligations under the Registration Rights Agreement, this bond shall, in
accordance with Section 2(e) of the Registration Rights Agreement,
bear additional interest (“Additional Interest”) in addition to the interest
provided for in the immediately preceding sentence. For purposes of this Note,
the term “interest” shall be deemed to include interest provided for in the
second immediately preceding sentence and Additional Interest, if any.]* No
interest shall accrue on the Maturity Date, so long as the principal amount of
this Note is paid in full on the Maturity Date. The interest so payable and
punctually paid or duly provided for on any such Interest Payment Date will
(except for interest payable on the Maturity Date set forth above or, if
applicable, upon redemption or acceleration), as provided in the Indenture (as
defined below), be paid to the Person in whose name this Note is registered at
the close of business on the Regular Record Date for such interest, which shall
be June 1 or December 1, as the case may be, next preceding such
Interest Payment Date; provided, that the first Interest Payment Date for any
part of this Note, the Original Issue Date of which is after a Regular Record
Date but prior to the applicable Interest Payment Date, shall be the Interest
Payment Date following the next succeeding Regular Record Date; and provided,
that interest payable on the Maturity Date set forth above or, if applicable,
upon redemption or acceleration, shall be payable to the Person to whom
principal shall be payable. Except as otherwise provided in the Indenture
(referred to on the reverse hereof), any such interest not so punctually paid
or duly provided for will forthwith cease to be payable to the Holder on such
Regular Record Date and shall be paid to the Person in whose name this Note is
registered at the close of business on a Special Record Date for the payment of
such defaulted interest to be fixed by the Trustee, notice whereof shall be
given to Noteholders not more than fifteen days nor fewer than ten days prior
to such Special Record Date. Principal, applicable premium and interest due at
the Maturity of this Note shall be

*              Include bracketed language only in
a Private Note.

 D-3
 

 

payable in immediately
available funds when due upon presentation and surrender of this Note at the
corporate trust office of the Trustee or at the authorized office of any paying
agent in the Borough of Manhattan, The City and State of New York or St. Louis,
Missouri. Interest on this Note (other than interest payable at Maturity) shall
be paid by check payable in clearinghouse funds to the Holder as its name
appears on the register; provided, that if the Trustee receives a written
request from any Holder of Notes, the aggregate principal amount of all of
which having the same Interest Payment Date as this Note equals or exceeds
$10,000,000, on or before the applicable Regular Record Date for such Interest
Payment Date, interest on the Note shall be paid by wire transfer of
immediately available funds to a bank within the continental United States
(designated by such Holder in its request or by direct deposit into the account
of such Holder designated by such Holder in its request if such account is
maintained with the Trustee or any paying agent).

REFERENCE IS HEREBY MADE
TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH IN FULL ON THE REVERSE HEREOF,
WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET
FORTH IN FULL AT THIS PLACE.

Unless the certificate of
authentication hereon has been executed by the Trustee referred to on the
reverse hereof, directly or through an Authenticating Agent by manual signature
of an authorized officer, this Note shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

 D-4
 

 

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

	
  

  	
  CENTRAL ILLINOIS LIGHT COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Assistant Secretary

  

TRUSTEE’S
CERTIFICATE

OF AUTHENTICATION

Dated:
June 14, 2006

This
Note is one of the Notes of the series herein

designated,
described or provided for in the within-

mentioned
Indenture.

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

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  

 

 D-5
 

 

[FORM OF REVERSE OF NOTE]

CENTRAL ILLINOIS LIGHT COMPANY

6.70% SENIOR SECURED NOTE DUE 2036

This Note is one of a
duly authorized issue of 6.70% Senior Secured Notes due 2036 (the “NOTES OF
THIS SERIES”) of the Company issued and to be issued under an Indenture dated
as of June 1, 2006, between the Company and The Bank of New York Trust
Company, N.A., as trustee (herein called the “TRUSTEE”, which term includes any
successor Trustee under the Indenture) and indentures supplemental thereto
(collectively, the “INDENTURE”). Under the Indenture, one or more series of
notes may be issued and, as used herein, the term “Notes” refers to the Notes
of this Series. Reference is hereby made to the Indenture for a more complete
statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Noteholders and of
the terms upon which the Notes are and are to be authenticated and delivered.
This Note is one of the series designated on the face hereof, issued in the
initial aggregate principal amount of $42,000,000.

Prior to the Release Date
(as hereinafter defined), the Notes will be secured by first mortgage bonds
(the “SENIOR NOTE FIRST MORTGAGE BONDS”) delivered by the Company to the
Trustee for the benefit of the Holders of the Notes, issued under the Indenture
of Mortgage or Deed of Trust, dated as of April 1, 1933, from the Company
to Deutsche Bank Trust Company Americas (successor to Bankers Trust Company),
as trustee (the “MORTGAGE TRUSTEE”), as supplemented and modified
(collectively, the “FIRST MORTGAGE”). Reference is made to the First Mortgage
and the Indenture for a description of the rights of the Trustee as holder of
the Senior Note First Mortgage Bonds, the property mortgaged and pledged, the
nature and extent of the security and the rights of the holders of first
mortgage bonds, under the First Mortgage and the rights of the Company and of the
Mortgage Trustee in respect thereof, the duties and immunities of the Mortgage
Trustee and the terms and conditions upon which the Senior Note First Mortgage
Bonds are secured and the circumstances under which additional first mortgage
bonds may be issued.

From and after such time
as all first mortgage bonds (other than Senior Note First Mortgage Bonds and
other first mortgage bonds securing a related series of Notes) issued under the
First Mortgage have been retired through payment, redemption or otherwise at,
before or after the maturity thereof (the “RELEASE DATE”), the Senior Note First
Mortgage Bonds shall cease to secure the Notes in any manner. In certain
circumstances prior to the Release Date as provided in the Indenture, the
Company is permitted to reduce the aggregate principal amount of a series of
Senior Note First Mortgage Bonds held by the Trustee, but in no event prior to
the Release Date to an amount less than the aggregate outstanding principal
amount of the series of Notes initially issued contemporaneously with such
Senior Note First Mortgage Bonds.

So long as any Note of
this Series is Outstanding, the Company will not, prior to June 15,
2009, optionally redeem, purchase or otherwise retire in full its outstanding
First Mortgage Bonds not subject to the release provisions of the Indenture.

 D-6
 

 

Each Note of this Series shall
be dated and issued as of the date of its authentication by the Trustee and
shall bear an Original Issue Date. Each Note of this Series issued upon
transfer, exchange or substitution of such Note shall bear the Original Issue
Date of such transferred, exchanged or substituted Note, as the case may be.

Interest on this Note
will accrue from and including the Original Issue Date specified above to, but
excluding, December 15, 2006, and thereafter, from and including each
Interest Payment Date to, but excluding, the next succeeding Interest Payment
Date or the Maturity Date, as the case may be.

Interest payments for
this Note shall be computed on the basis of a 360-day year consisting of
twelve 30-day months. If any Interest Payment Date falls on a day that is
not a Business Day, the Interest Payment Date will be the next succeeding
Business Day (and without any interest or other payment in respect of any such
delay). If the Maturity Date of this Note or any redemption date falls on a day
that is not a Business Day, the payment of principal, premium, if any, and
interest will be made on the next succeeding Business Day, and no interest on
such payment shall accrue for the period from and after the Maturity Date or
such redemption date.

All or a portion of the
Notes of this Series may be redeemed at the option of the Company at any
time or from time to time. The redemption price for the Notes of this Series to
be redeemed on any redemption date will be equal to the greater of the
following amounts: (a) 100% of the principal amount of the Notes of this Series being
redeemed on the redemption date; or (b) the sum of the present values of
the remaining scheduled payments of principal and interest on the Notes of this
Series being redeemed on that redemption date (not including any portion
of any payments of interest accrued to the redemption date) discounted to the
redemption date on a semiannual basis at the Adjusted Treasury Rate (as defined
below) plus 30 basis points, as determined by the Reference Treasury Dealer (as
defined below); plus, in each case, accrued and unpaid interest thereon to the
redemption date. Notwithstanding the foregoing, installments of interest on
Notes of this Series that are due and payable on Interest Payment Dates
falling on or prior to a redemption date will be payable on the Interest
Payment Date to the Holder of this Note as of the close of business on the
relevant Regular Record Date. The redemption price will be calculated on the
basis of a 360-day year consisting of twelve 30-day months.

The Company shall mail
notice of any redemption at least 30 days but not more than 60 days before the
redemption date to each Holder of the Notes of this Series to be redeemed.
Unless the Company defaults in payment of the redemption price, on and after
the redemption date, interest will cease to accrue on the Notes of this Series or
portions thereof called for redemption.

“ADJUSTED TREASURY RATE”
means, with respect to any redemption date, the rate per annum equal to the
semiannual equivalent yield to maturity of the Comparable Treasury Issue,
assuming a price for the Comparable Treasury Issue (expressed as a percentage
of its principal amount) equal to the Comparable Treasury Price for such
redemption date.

“COMPARABLE TREASURY
ISSUE” means the United States Treasury security selected by the Reference
Treasury Dealer as having a maturity comparable to the remaining 

 D-7
 

 

term of the Notes of this
Series to be redeemed that would be utilized, at the time of selection and
in accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of such
Notes of this Series.

“COMPARABLE TREASURY
PRICE” means, with respect to any redemption date, (A) the average of the
Reference Treasury Dealer Quotations for such redemption date, after excluding
the highest and lowest such Reference Treasury Dealer Quotations, or (B) if
the Trustee obtains fewer than four such Reference Treasury Dealer Quotations,
the average of all such quotations, or (C) if only one Reference Treasury
Dealer Quotation is received, such quotation.

“REFERENCE TREASURY
DEALER” means (A) Citigroup Global Markets Inc. or Goldman, Sachs &
Co. or their respective affiliates which are primary U.S. Government securities
dealers in New York City (each, a “Primary Treasury Dealer”), and their
respective successors; provided, however, that if any of the foregoing shall
cease to be a Primary Treasury Dealer, the Company shall substitute therefor
another Primary Treasury Dealer; and (B) any other Primary Treasury Dealer(s) selected
by the Trustee after consultation with the Company.

“REFERENCE TREASURY
DEALER QUOTATIONS” means, with respect to each Reference Treasury Dealer and
any redemption date, the average, as determined by the Trustee, of the bid and
asked prices for the Comparable Treasury Issue (expressed in each case as a
percentage of its principal amount) quoted in writing to the Trustee by such Reference
Treasury Dealer at 5:00 p.m. (New York City time) on the third Business
Day preceding such redemption date.

The Company, at its
option, and subject to the terms and conditions provided in the Indenture, will
be discharged from any and all obligations in respect of the Notes of this Series (except
for certain obligations including obligations to register the transfer or
exchange of Notes of this Series, replace stolen, lost or mutilated Notes of
this Series, maintain paying agencies and hold monies for payment in trust, all
as set forth in the Indenture) if the Company deposits with the Trustee money,
U.S. Government Obligations which through the payment of interest thereon and
principal thereof in accordance with their terms will provide money, or a
combination of money and U.S. Government Obligations, in any event in an amount
sufficient, without reinvestment, to pay all the principal of and any premium
and interest on the Notes of this Series on the dates such payments are
due in accordance with the terms of the Notes of this Series.

If an Event of Default
shall occur and be continuing with respect to the Notes, the principal of and
interest on the Notes may be declared due and payable in the manner and with
the effect provided in the Indenture and, upon such declaration, the Trustee
shall demand the redemption of the Senior Note First Mortgage Bonds to the
extent provided in the Indenture.

The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the
modifications of the rights and obligations of the Company and the rights of
the Noteholders under the Indenture at any time by the Company and the Trustee
with the consent of the Holders of a majority in aggregate principal amount of
the outstanding Notes. Any such consent or waiver by the Holder of this Note
shall be conclusive and binding upon such Holder and upon all future Holders of
this Note and of any Note issued upon the registration of transfer 

 D-8
 

 

hereof or in exchange
therefor or in lieu thereof whether or not notation of such consent or waiver
is made upon this Note.

As set forth in and
subject to the provisions of the Indenture, no Holder of any Notes will have
any right to institute any proceeding with respect to the Indenture or for any
remedy thereunder unless such Holder shall have previously given to the Trustee
written notice of a continuing Event of Default with respect to such Notes, the
Holders of a majority in aggregate principal amount of the outstanding Notes
affected by such Event of Default shall have made written request and offered
reasonable indemnity to the Trustee to institute such proceeding as Trustee and
the Trustee shall have failed to institute such proceeding within 60 days;
provided, however, that such limitations do not apply to a suit instituted by
the Holder hereof for the enforcement of payment of the principal of and any
premium or interest on this Note on or after the respective due dates expressed
herein.

No reference herein to
the Indenture and to provisions of this Note or of the Indenture shall alter or
impair the obligation of the Company, which is absolute and unconditional, to
pay the principal of and any premium and interest on this Note at the times,
places and rates and the coin or currency prescribed in the Indenture.

As provided in the
Indenture and subject to certain limitations therein set forth, the transfer of
this Note is registrable in the Note register. Upon surrender of this Note for
registration or transfer at the corporate trust office of the Trustee or such other
office or agency as may be designated by the Company in the Borough of
Manhattan, the City and State of New York, or St. Louis, Missouri, endorsed by
or accompanied by a written instrument of transfer in form satisfactory to the
Company and the Note registrar, duly executed by the Holder hereof or the
attorney in fact of such Holder duly authorized in writing, one or more new
Notes of this Series of like tenor and of authorized denominations and for
the same aggregate principal amount will be issued to the designated transferee
or transferees.

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

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

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

The Indenture and the
Notes shall be governed by, and construed in accordance with, the laws of the
State of New York without regard to conflicts of law principles thereof.

 D-9
 

 

All terms used in this
Note that are defined in the Indenture shall have the meanings assigned to them
in the Indenture unless otherwise indicated herein.

 D-10
 

 

ABBREVIATIONS

The following
abbreviations, when used in the inscription on the face of this instrument,
shall be construed as though they were written out in full according to
applicable laws or regulations:

	
  TEN COM — as tenants in common 

  	
  UNIF GIFT

  
	
   

  	
  MIN ACT -

  	
   

  	
  Custodian

  	
   

  
	
   

  	
   

  	
  (Cust)

  	
   

  	
  (Minor)

  
	
  TEN ENT — as tenants by the

  entireties

  	
  Under Uniform Gifts to Minors

  
	
  JT TEN — as joint tenants with right

   of survivorship and not as tenants in

   common

  	
   

  
	
   

  	
  State

  

Additional abbreviations may also be used 

though not in the above list.

 

 D-11
 

 

CERTIFICATE OF TRANSFER*

CENTRAL
ILLINOIS LIGHT COMPANY

6.70%
Senior Secured Notes due 2036

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

PLEASE INSERT SOCIAL SECURITY OR
OTHER

IDENTIFYING NUMBER OF ASSIGNEE

Name
and address of assignee must be printed or typewritten.

$

principal amount of beneficial interest in the referenced
Security of the Company and does hereby irrevocably constitute and appoint to
transfer the said beneficial interest in such Security, with full power of
substitution in the premises.

The undersigned certifies that
said beneficial interest in said Security is being resold, pledged or otherwise
transferred as follows:

(check
one)

o                        to the Company;

o                        to a Person whom the undersigned reasonably
believes is a qualified institutional buyer within the meaning of Rule 144A
under the Securities Act of 1933, as amended (the “Securities Act”), purchasing
for its own account or for the account of a qualified institutional buyer to
whom notice is given that the resale, pledge or other transfer is being made in
reliance on Rule 144A;

o                        in an offshore transaction in accordance with Rule 903
or 904 of Regulation S under the Securities Act;

o                        to an institution that is an “accredited investor”
as defined in Rule 501(a)(1), (2), (3) or (7) under the
Securities Act that is acquiring this Security for investment purposes and not
for distribution (attach a copy of an Institutional Accredited Investor
Certificate in the form annexed signed by an authorized officer of the
transferee);

o                        as otherwise permitted by the non-registration
legend appearing on this Security; or

o                        as otherwise agreed by the Company, confirmed in
writing to the Trustee, as follows: [describe]

	
  Dated:

  	
   

  	
   

  	
  Signature:

  	
   

  
	
   

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

  

*              Include this form of Certificate of Transfer
only in a Private Note.

 D-12
 

 

SIGNATURE GUARANTEE

Signatures
must be guaranteed by an “eligible guarantor institution” meeting the
requirement of the registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program (“STAMP”) or
such other “signature guarantee program” as may be determined by the registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

 D-13
 

 

[FORM OF INSTITUTIONAL ACCREDITED INVESTOR CERTIFICATE]*

[Transferor Name and Address]

Ladies
and Gentlemen:

In
connection with our proposed purchase of 6.70% Senior Secured Notes due 2036
(the “Notes”) issued by Central Illinois Light Company d/b/a AmerenCILCO (the “Issuer”),
we confirm that:

1.             We have received a copy of the Offering Memorandum (the “Offering
Memorandum”) relating to the Notes and such other information as we deem
necessary in order to make our investment decision. We acknowledge that we have
read and agree to the matters stated under the caption NOTICE TO INVESTORS in
such Offering Memorandum.

2.             We understand that any subsequent transfer of the Notes
is subject to certain restrictions and conditions set forth in the indenture
relating to the Notes (the “Indenture”) and as set forth under NOTICE TO
INVESTORS in the Offering Memorandum and the undersigned agrees to be bound by,
and not to resell, pledge or otherwise transfer the Notes except in compliance
with such restrictions and conditions and the Securities Act of 1933, as
amended (the “Securities Act”).

3.             We understand that the offer and sale of the Notes have
not been registered under the Securities Act, and that the Notes may not be
offered or sold except as permitted in the following sentence. We agree, on our
own behalf and on behalf of any accounts for which we are acting as hereinafter
stated, that if we sell any Notes, we will do so only (A) to the Issuer, (B) so
long as the Notes are eligible for resale pursuant to Rule 144A under the
Securities Act (“Rule 144A”), to a person whom we reasonably believe is a “qualified
institutional buyer” within the meaning of Rule 144A that purchases for
its own account or for the account of a qualified institutional buyer to whom
notice is given that the resale, pledge or other transfer is being made in
reliance on Rule 144A, (C) to an institutional “accredited investor”
(as defined below) that, prior to such transfer, furnishes to the Trustee (as
defined in the Indenture) a signed letter containing certain representations
and agreements relating to the restrictions on transfer of the Notes
(substantially in the form of this letter), (D) in an offshore transaction
in accordance with Rule 904 of Regulation S under the Securities Act, (E) pursuant
to the exemption from registration provided by Rule 144 under the
Securities Act (if available), or (F) in accordance with another applicable
exemption from the registration requirements of, or in a transaction not
subject to, the Securities Act or pursuant to an effective registration
statement under the Securities Act, and we further agree to provide

*              Include this
form only in a Private Note.

 D-14
 

 

to any person purchasing any of the Notes from us
a notice advising such purchaser that resales of the Notes are restricted as
stated herein.

4.             We understand that, on any proposed resale of any Notes,
we will be required to furnish to the Trustee and the Issuer such certification
and other information as the Trustee and the Issuer may reasonably require to
confirm that the proposed sale complies with the foregoing restrictions. We
further understand that the Notes purchased by us will bear a legend to the
foregoing effect.

5.             We are an institutional “accredited investor” (as
defined in Rule 501(a)(1), (2), (3) or (7) under the Securities
Act) and have such knowledge and experience in financial and business matters
as to be capable of evaluating the merits and risks of our investment in the
Notes, and we and any accounts for which we are acting are each able to bear
the economic risk of our or its investment.

6.             We are acquiring the Notes purchased by us for our own
account or for one or more accounts (each of which is an institutional “accredited
investor”) as to each of which we exercise sole investment discretion in each
case for investment and not with a view to, or for offer or sale in connection
with, any distribution in violation of the Securities Act.

You, the Issuer and the Trustee are entitled to rely upon this letter and
are irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 D-15Exhibit 4.7

Company Order

June 14, 2006

The Bank of New York
Trust Company, N.A.

911 Washington Avenue, Suite 300

St. Louis, Missouri 63101

Ladies and Gentlemen:

Application
is hereby made to The Bank of New York Trust Company, N.A., a national banking
association, as trustee (the “Trustee”), under the Indenture dated as of June 1,
2006 (the “Indenture”), between Illinois Power Company, an Illinois corporation
(the “Company”), and the Trustee for the authentication and delivery of
$75,000,000 aggregate principal amount of the Company’s 6.25% Senior Secured
Notes due 2016 (the “Notes”), pursuant to the provisions of Article II of
the Indenture. On or after the Release Date, the Company, in its discretion,
may change the descriptive title of the Notes to delete the word “Secured” from
such descriptive title. Additional Notes without limitation as to amount, and
without the consent of the holders of the then Outstanding Notes, may also be
authenticated and delivered in the manner provided in Section 2.05 of the Indenture.
All capitalized terms not defined herein that are defined in the Indenture
shall have the same meaning as used in the Indenture.

The
Notes will be initially issued pursuant to Section 4(2) of the
Securities Act of 1933, as amended (the “Securities Act”), in the form of
Global Notes registered in the name of Cede & Co. (as nominee for The
Depository Trust Company (“DTC”), New York, New York, which will act as the
Depositary for the Global Notes). Pursuant to Section 2.05(c) of the
Indenture, the Notes will have the terms set forth in the form of Global Note
attached hereto as Exhibit A and in the form of definitive Note attached
hereto as Exhibit B (which terms are incorporated by reference in this
Company Order). The Global Notes shall bear the depository legend in
substantially the form set forth in Exhibit A attached hereto. The Notes
will be issued only in denominations of $1,000 and in integral multiples of
$1,000 in excess thereof.

Initially,
beneficial interests in the Notes offered and sold to qualified institutional
buyers (as defined in Rule 144A under the Securities Act) (“QIBs”) in
reliance upon Rule 144A under the Securities Act will be represented by
one or more separate Global Notes (each, a “Rule 144A Global Certificate”)
registered in the name of Cede & Co., as registered owner and as
nominee for DTC and shall include the non-registration and registration
rights legends set forth in Exhibit A attached hereto. Initially
beneficial interests in the Notes offered and sold to purchasers pursuant to
Regulation S under the Securities Act will be evidenced by one or more separate
temporary Global Notes (each, a “Temporary Regulation S Global Certificate”)
and will be registered in the name of Cede & Co., as registered owner
and as nominee for DTC for the accounts of The Euroclear System (“Euroclear”)
or Clearstream Banking, Luxembourg, société anonyme (“Clearstream”) and shall
include the Regulation S and registration rights legends set forth in Exhibit A
attached hereto. Notes offered and sold to institutional “accredited investors”
(as defined in Rule 501(a)(1), (2), (3) or (7) under the
Securities Act) who are not QIBs and who 

 

are not purchasers
pursuant to Regulation S under the Securities Act will be in definitive form in
the form attached hereto as Exhibit B and shall include the non-registration
and registration rights legends set forth therein. The Trustee and the Company
will have no responsibility or liability for any aspect of transfers of
beneficial interests in the Notes (which transfers will be conducted pursuant
to the customary procedures of DTC), any records of DTC of beneficial interests
or any transactions between DTC and its participants or between any such
participants and any other beneficial owners or for monitoring, supervising or
reviewing of any thereof.

Transfers
of beneficial interests in the Rule 144A Global Certificate will be
subject to the restrictions on transfer contained in the non-registration
legend set forth in Exhibit A hereto. Prior to the expiration of the
period of 40 consecutive days beginning on and including the later of (x) the
day on which the offering of the Notes commences and (y) the original
issue date of the Notes (the “Distribution Compliance Period”), transfers of
beneficial interests in the Temporary Regulation S Global Certificate will
be subject to the restrictions on transfer contained in the Regulation S
legend set forth in Exhibit A hereto. At any time after the expiration of
the Distribution Compliance Period, upon receipt by the Trustee and the Company
of a certificate from Euroclear or Clearstream certifying that it has received
certification of non-U.S. beneficial ownership of a Temporary Regulation S
Global Certificate (or portion thereof) with respect to any Notes to be
exchanged, one or more separate permanent Global Notes (each, a “Permanent
Regulation S Global Certificate” and, together with each Temporary Regulation S
Global Certificate, each, a “Regulation S Global Certificate”) shall be duly
executed by the Company and authenticated by the Trustee as provided in the
Indenture, shall be registered in the name of Cede & Co., as
registered owner and as nominee for DTC, and shall include the registration
rights legend set forth in Exhibit A hereto and shall be deposited with
the Trustee, as custodian for DTC. The Trustee, as custodian for DTC, shall
reflect by endorsement thereon a decrease in the principal amount of the
Temporary Regulation S Global Certificate in an amount equal to the principal
amount of such Temporary Regulation S Global Certificate exchanged. Prior to
the expiration of the Distribution Compliance Period, beneficial interests in
any Temporary Regulation S Global Certificate may only be held through
Euroclear or Clearstream. After the expiration of the Distribution Compliance
Period, transfers of beneficial interests in the Permanent Regulation S
Global Certificate will not be subject to any restrictions.

In
connection with any transfer of Notes, the Trustee and the Company shall be
under no duty to inquire into, may conclusively presume the correctness of, and
shall be fully protected in relying upon the certificates and other information
(set forth in the form of definitive Note attached hereto as Exhibit B,
for use in connection with the transfer of the Notes in definitive form, or set
forth in Exhibit A-1 attached hereto, for use in connection with the
transfer of beneficial interests between a Rule 144A Global Certificate
and a Regulation S Global Certificate or to a Note in definitive form, or
otherwise) received from the Holders and any transferees of any Notes regarding
the validity, legality and due authorization of any such transfer, the
eligibility of the transferee to receive such Note and any other facts and
circumstances related to such transfer. Transfers of beneficial interests
between a Rule 144A Global Certificate and a Regulation S Global
Certificate, and other transfers relating to beneficial interests in the Notes
in global form, shall be reflected by endorsements of the Trustee, as custodian
for DTC, on the schedule attached to such certificate.

 2
 

 

The
Company has entered into a Registration Rights Agreement dated as of June 14,
2006 (the “Registration Rights Agreement”) with the initial purchasers of the
Notes pursuant to which the Notes that are issued and sold without registration
(the “Private Notes”) under the Securities Act may be exchanged for Notes that
will be registered under the Securities Act and that will otherwise have
substantially the same terms as the Private Notes (the “Exchange Notes”),
except that such Exchange Notes will be issued in the form of Global Note
attached hereto as Exhibit A and will bear all customary legends (except
for the non-registration, Regulation S and registration rights legends)
or, in lieu of such exchange, the Company has agreed to file a shelf
registration statement for the resale of the Notes (in which case any Notes so
resold will be issued in the form of Global Note attached hereto as Exhibit A
and bear all customary legends (except for the non-registration,
Regulation S and registration rights legends)). The Private Notes will be
exchanged for Exchange Notes only pursuant to an effective registration
statement under the Securities Act and otherwise in accordance with the
Registration Rights Agreement and the Indenture. The Private Notes and the
Exchange Notes will constitute a single series of notes under the Indenture. Exchange
Notes shall be authenticated and delivered by the Trustee at one time or from
time to time upon the receipt by the Trustee of a Company Order in principal
amounts equal to the principal amounts of the Private Notes surrendered in
exchange therefor. In addition, upon the receipt of such Company Order, the
Trustee will take such actions as to effectuate the exchange of any Private
Notes for Exchange Notes in accordance with the Registration Rights Agreement
and the Indenture.

In
connection with this Company Order, there are delivered to you herewith the
following:

1.               Certified copies of
the resolutions adopted by the Board of Directors of the Company authorizing
this Company Order and the issuance and sale of the Notes by the Company
pursuant to Section 2.05(c)(1) of the Indenture;

2.               Opinions of Counsel
addressed to you or in which it is stated that you may rely pursuant to Section 2.05(c)(2) of
the Indenture;

3.               Expert’s
certificate pursuant to Section 2.05(c)(3) of the Indenture;

4.               Officers’
Certificate pursuant to Section 2.05(c)(4) of the Indenture;

5.               Two Global Notes
representing the Notes executed on behalf of the Company in accordance with the
terms of Section 2.05(a) of the Indenture, specifying the terms of
the Notes (which terms are incorporated by reference herein); and

6.               Pursuant to Section 2.05(c)(3) of
the Indenture, the Company’s Mortgage Bonds designated “Mortgage Bonds, Senior
Notes Series AA” (the “Mortgage Bonds”) in the principal amount of
$75,000,000 relating to the Notes, fully registered in the name of the Trustee
in trust for the benefit of the Holders from time to time of such Notes.

You
are hereby instructed to authenticate the Global Notes representing the Notes
and hold them as DTC’s custodian. The Global Notes representing the Notes are
to be held for delivery through the facilities of DTC to the initial purchasers
thereof against payment therefor at 

 3
 

 

the closing in
respect of the sale thereof, such closing to be held at 10:00 a.m., New
York time, June 14, 2006, at the offices of Pillsbury Winthrop Shaw
Pittman LLP, 1540 Broadway, New York, New York 10036.

 4
 

 

Please
acknowledge receipt of the Global Notes representing the Notes, the
instructions referred to above and the supporting documentation pursuant to the
Indenture referred to above (including the Mortgage Bonds in trust for the
benefit of the Holders).

	
  

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  Illinois Power
  Company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JERRE E. BIRDSONG

  
	
   

  	
   

  	
  Name:  Jerre
  E. Birdsong

  
	
   

  	
   

  	
  Title:  Vice
  President and Treasurer

  

 

 5
 

 

Receipt from the Company of the Global Notes representing the Notes,
certain instructions related thereto and the supporting documentation pursuant
to the Indenture (including the Mortgage Bonds in trust for the benefit of the
Holders) in connection with the authentication and delivery of the Notes is
hereby acknowledged.

	
   

  	
  The Bank of New York Trust
  Company, N.A.,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DANIEL G.
  DWYER

  
	
   

  	
   

  	
  Name: Daniel G. Dwyer

  
	
   

  	
   

  	
  Title:   Vice President

  

 

 6

 

EXHIBIT A

FORM OF GLOBAL NOTE

[depository legend]

THIS SECURITY IS A
GLOBAL NOTE REGISTERED IN THE NAME OF THE DEPOSITARY (REFERRED TO HEREIN) OR A
NOMINEE THEREOF AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE FOR THE
INDIVIDUAL NOTES REPRESENTED HEREBY AS PROVIDED IN THE INDENTURE REFERRED TO
BELOW, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY. UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK), TO THE
TRUSTEE FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND
ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

[non-registration legend to be included on Private Notes]

THIS SECURITY HAS
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”). THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, AGREES FOR THE BENEFIT
OF THE COMPANY THAT THIS SECURITY MAY NOT BE RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED PRIOR TO THE DATE WHICH IS TWO YEARS AFTER THE LATER OF THE
ORIGINAL ISSUANCE DATE THEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY
AFFILIATE THEREOF WAS THE OWNER OF THIS SECURITY OR THE EXPIRATION OF SUCH
SHORTER PERIOD AS MAY BE PRESCRIBED BY RULE 144(k), OR ANY SUCCESSOR
PROVISION THEREOF, UNDER THE SECURITIES ACT (THE “RESALE RESTRICTION
TERMINATION DATE”) OTHER THAN (1) TO THE COMPANY, (2) IN A
TRANSACTION ENTITLED TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT, (3) SO LONG AS THIS SECURITY IS ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A
PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
WITHIN THE MEANING OF RULE 144A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A (AS
INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER
ATTACHED TO THIS SECURITY), (4) IN AN OFFSHORE TRANSACTION IN ACCORDANCE
WITH RULE 903 OR 904 OF 

 A-1
 

 

REGULATION
S UNDER THE SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR
ON THE CERTIFICATE OF TRANSFER ATTACHED TO THIS SECURITY), (5) TO AN
INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a)(1), (2),
(3) OR (7) UNDER THE SECURITIES ACT (AS INDICATED BY THE BOX CHECKED
BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ATTACHED TO THIS SECURITY)
THAT IS ACQUIRING THIS SECURITY FOR INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION,
AND A CERTIFICATE IN THE FORM ATTACHED TO THIS SECURITY IS DELIVERED BY
THE TRANSFEREE TO THE COMPANY AND THE TRUSTEE OR (6) IN ACCORDANCE WITH
ANOTHER APPLICABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE
WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE
FOREGOING RESTRICTIONS ON RESALE WILL NOT APPLY SUBSEQUENT TO THE RESALE
RESTRICTION TERMINATION DATE. THE HOLDER OF THIS SECURITY ACKNOWLEDGES THAT THE
COMPANY RESERVES THE RIGHT PRIOR TO ANY OFFER, SALE OR OTHER TRANSFER (1) PURSUANT
TO CLAUSE (2) PRIOR TO THE RESALE RESTRICTION TERMINATION DATE TO REQUIRE
THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS OR OTHER INFORMATION
SATISFACTORY TO THE COMPANY AND (2) IN EACH OF THE FOREGOING CASES, TO
REQUIRE THAT A CERTIFICATE AS TO COMPLIANCE WITH CERTAIN CONDITIONS TO TRANSFER
IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE COMPANY.

[Regulation S legend
to be included on Private Notes]

THIS SECURITY IS
REPRESENTED BY A TEMPORARY REGULATION S GLOBAL CERTIFICATE WITHIN THE MEANING
OF THE COMPANY ORDER ESTABLISHING THE TERMS OF THIS SECURITY. BY ITS
ACQUISITION HEREOF, EACH HOLDER OF THIS SECURITY, AND EACH PERSON THAT ACQUIRES
A BENEFICIAL INTEREST IN SUCH SECURITY, AGREES THAT PRIOR TO THE EXPIRATION OF
THE DISTRIBUTION COMPLIANCE PERIOD (AS DEFINED IN THE COMPANY ORDER
ESTABLISHING THE TERMS OF THIS SECURITY), BENEFICIAL INTERESTS IN THIS SECURITY
MAY ONLY BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED (A) INSIDE THE
UNITED STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH
RULE 144A UNDER THE SECURITIES ACT OF 1933 OR (B) OUTSIDE THE UNITED
STATES IN COMPLIANCE WITH RULE 903 OR 904 UNDER THE SECURITIES ACT OF
1933 AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF
THE STATES OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION.

[registration rights
legend to be included on Private Notes]

BY ITS ACCEPTANCE
OF THE SECURITIES EVIDENCED HEREBY OR A BENEFICIAL INTEREST IN SUCH SECURITIES,
THE HOLDER OF, AND ANY PERSON THAT ACQUIRES A BENEFICIAL INTEREST IN, SUCH
SECURITIES AGREES TO BE 

 A-2
 

 

BOUND
BY THE PROVISIONS OF THE REGISTRATION RIGHTS AGREEMENT (THE “REGISTRATION
RIGHTS AGREEMENT”) DATED AS OF JUNE 14, 2006 AND RELATING TO THE
REGISTRATION UNDER THE SECURITIES ACT OF SECURITIES EXCHANGEABLE FOR THE
SECURITIES EVIDENCED HEREBY AND REGISTRATION OF THE SECURITIES EVIDENCED
HEREBY.

Illinois Commerce Commission ID
No.: 6353

ILLINOIS
POWER COMPANY

6.25% SENIOR SECURED NOTE DUE 2016

	
  CUSIP: [452092CN7] [U4504NAA7]

  	
  NUMBER: 1

  
	
  ISIN: [US452092CN78] [USU4504NAA73]

  	
   

  
	
   

  	
   

  
	
  ORIGINAL ISSUE DATE: June 14, 2006

  	
  PRINCIPAL AMOUNT: Listed on
  Schedule I hereto

  
	
   

  	
   

  
	
  INTEREST RATE: 6.25%

  	
  MATURITY DATE: June 15,
  2016

  

ILLINOIS
POWER COMPANY, a corporation of the State of Illinois (the “COMPANY”), for
value received hereby promises to pay to CEDE & CO. or registered
assigns, the principal amount specified above on the Maturity Date set forth
above, and to pay interest thereon from and including the Original Issue Date
specified above or from and including the most recent Interest Payment Date to
which interest has been paid or duly provided for, semi-annually in arrears on June 15th and December 15th in
each year, commencing December 15, 2006, and on the Maturity Date, at the
per annum interest rate set forth above until the principal hereof is paid or
made available for payment. [If the Company does not comply with certain of its
obligations under the Registration Rights Agreement, this bond shall, in
accordance with Section 2(e) of the Registration Rights Agreement,
bear additional interest (“Additional Interest”) in addition to the interest provided
for in the immediately preceding sentence. For purposes of this Note, the term “interest”
shall be deemed to include interest provided for in the second immediately
preceding sentence and Additional Interest, if any.]* No interest shall accrue
on the Maturity Date, so long as the principal amount of this Note is paid in
full on the Maturity Date. The interest so payable and punctually paid or duly
provided for on any such Interest Payment Date will (except for interest
payable on the Maturity Date set forth above or, if applicable, upon redemption
or acceleration), as provided in the Indenture (as defined below), be paid to
the Person in whose name this Note is registered at the close of business on
the Regular Record Date for such interest, which shall be June 1 or December 1,
as the case may be, next preceding such Interest Payment Date; provided, that
the first Interest Payment Date for any part of this Note, the Original Issue
Date of which is after a Regular Record Date but prior to the applicable
Interest Payment Date, shall be the Interest Payment Date following the next
succeeding Regular Record Date; and provided, that interest payable on the
Maturity Date set forth above or, if applicable, upon redemption or
acceleration, shall be payable to the Person to whom principal shall be
payable. Except as otherwise provided in the Indenture, any such 

*                    Include
bracketed language only in a Private Note.

 A-3
 

 

interest
not so punctually paid or duly provided for will forthwith cease to be payable
to the Holder on such Regular Record Date and shall be paid to the Person in
whose name this Note is registered at the close of business on a Special Record
Date for the payment of such defaulted interest to be fixed by the Trustee,
notice whereof shall be given to Noteholders not more than fifteen days nor
fewer than ten days prior to such Special Record Date. Payment of the principal
of and interest and premium on this Note shall be payable pursuant to Section 2.12(a) of
the Indenture.

This Note is a
Global Note in respect of a duly authorized issue of 6.25% Senior Secured Notes
due 2016 (the “NOTES OF THIS SERIES”, which term includes any Global Notes
representing such Notes) of the Company issued and to be issued under an
Indenture dated as of June 1, 2006 between the Company and The Bank of New
York Trust Company, N.A., as trustee (herein called the “TRUSTEE”, which term
includes any successor Trustee under the Indenture) and indentures supplemental
thereto (collectively, the “INDENTURE”). Under the Indenture, one or more
series of notes may be issued and, as used herein, the term “Notes” refers to
the Notes of this Series. Reference is hereby made to the Indenture for a more
complete statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Noteholders and of
the terms upon which the Notes are and are to be authenticated and delivered.
This Note has been issued in respect of the series designated on the first page hereof,
issued in the initial aggregate principal amount of $75,000,000.

Prior to the
Release Date (as hereinafter defined), the Notes will be secured by mortgage
bonds (the “SENIOR NOTE MORTGAGE BONDS”) delivered by the Company to the
Trustee for the benefit of the Holders of the Notes, issued under the
General  Mortgage Indenture and Deed of
Trust, dated as of November 1, 1992 between the Company and BNY Midwest
Trust Company, as successor trustee (the “MORTGAGE TRUSTEE”), as supplemented
and modified (collectively, the “MORTGAGE”). Reference is made to the Mortgage
and the Indenture for a description of the rights of the Trustee as holder of
the Senior Note Mortgage Bonds, the property mortgaged and pledged, the nature
and extent of the security and the rights of the holders of mortgage bonds,
under the Mortgage and the rights of the Company and of the Mortgage Trustee in
respect thereof, the duties and immunities of the Mortgage Trustee and the terms
and conditions upon which the Senior Note Mortgage Bonds are secured and the
circumstances under which additional mortgage bonds may be issued.

From and after
such time as all mortgage bonds (other than Senior Note Mortgage Bonds and
other mortgage bonds securing a related series of Notes) issued under the
Mortgage have been retired through payment, redemption or otherwise at, before
or after the maturity thereof (the “RELEASE DATE”), the Senior Note Mortgage
Bonds shall cease to secure the Notes in any manner. In certain circumstances
prior to the Release Date as provided in the Indenture, the Company is
permitted to reduce the aggregate principal amount of a series of Senior Note
Mortgage Bonds held by the Trustee, but in no event prior to the Release Date
to an amount less than the aggregate outstanding principal amount of the series
of Notes initially issued contemporaneously with such Senior Note Mortgage
Bonds.

Each Note of this Series shall
be dated and issued as of the date of its authentication by the Trustee and
shall bear an Original Issue Date. Each Note of this Series issued upon
transfer, 

 A-4
 

 

exchange
or substitution of such Note shall bear the Original Issue Date of such
transferred, exchanged or substituted Note, as the case may be.

Interest on this
Note will accrue from and including the Original Issue Date specified above to,
but excluding, December 15, 2006, and thereafter, from and including each
Interest Payment Date to, but excluding, the next succeeding Interest Payment
Date or the Maturity Date, as the case may be.

Interest payments
for this Note shall be computed on the basis of a 360-day year consisting
of twelve 30-day months. If any Interest Payment Date falls on a day that
is not a Business Day, the Interest Payment Date will be the next succeeding
Business Day (and without any interest or other payment in respect of any such
delay). If the Maturity Date of this Note or any redemption date falls on a day
that is not a Business Day, the payment of principal, premium, if any, and
interest will be made on the next succeeding Business Day, and no interest on
such payment shall accrue for the period from and after the Maturity Date or
such redemption date.

All or a portion
of the Notes of this Series may be redeemed at the option of the Company
at any time or from time to time. The redemption price for the Notes of this Series to
be redeemed on any redemption date will be equal to the greater of the
following amounts: (a) 100% of the principal amount of the Notes of this Series being
redeemed on the redemption date; or (b) the sum of the present values of
the remaining scheduled payments of principal and interest on the Notes of this
Series being redeemed on that redemption date (not including any portion
of any payments of interest accrued to the redemption date) discounted to the
redemption date on a semiannual basis at the Adjusted Treasury Rate (as defined
below) plus 20 basis points, as determined by the Reference Treasury Dealer (as
defined below); plus, in each case, accrued and unpaid interest thereon to the
redemption date. Notwithstanding the foregoing, installments of interest on
Notes of this Series that are due and payable on Interest Payment Dates
falling on or prior to a redemption date will be payable on the Interest
Payment Date to the Holder of this Note as of the close of business on the
relevant Regular Record Date. The redemption price will be calculated on the
basis of a 360-day year consisting of twelve 30-day months.

The Company shall
mail notice of any redemption at least 30 days but not more than 60 days before
the redemption date to each Holder of the Notes of this Series to be
redeemed. Unless the Company defaults in payment of the redemption price, on
and after the redemption date, interest will cease to accrue on the Notes of
this Series or portions thereof called for redemption.

“ADJUSTED TREASURY
RATE” means, with respect to any redemption date, the rate per annum equal to
the semiannual equivalent yield to maturity of the Comparable Treasury Issue,
assuming a price for the Comparable Treasury Issue (expressed as a percentage
of its principal amount) equal to the Comparable Treasury Price for such
redemption date.

“COMPARABLE
TREASURY ISSUE” means the United States Treasury security selected by the
Reference Treasury Dealer as having a maturity comparable to the remaining term
of the Notes of this Series to be redeemed that would be utilized, at the
time of selection 

 A-5
 

 

and in
accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of such
Notes of this Series.

“COMPARABLE
TREASURY PRICE” means, with respect to any redemption date, (A) the
average of the Reference Treasury Dealer Quotations for such redemption date,
after excluding the highest and lowest such Reference Treasury Dealer
Quotations, or (B) if the Trustee obtains fewer than four such Reference
Treasury Dealer Quotations, the average of all such quotations, or (C) if
only one Reference Treasury Dealer Quotation is received, such quotation.

“REFERENCE
TREASURY DEALER” means (A) Goldman, Sachs & Co. or Lehman Brothers
Inc. or their respective affiliates which are primary U.S. Government
securities dealers in New York City (each, a “Primary Treasury Dealer”), and
their respective successors; provided, however, that if any of the foregoing
shall cease to be a Primary Treasury Dealer, the Company shall substitute
therefor another Primary Treasury Dealer; and (B) any other Primary
Treasury Dealer(s) selected by the Trustee after consultation with the
Company.

“REFERENCE
TREASURY DEALER QUOTATIONS” means, with respect to each Reference Treasury
Dealer and any redemption date, the average, as determined by the Trustee, of
the bid and asked prices for the Comparable Treasury Issue (expressed in each
case as a percentage of its principal amount) quoted in writing to the Trustee
by such Reference Treasury Dealer at 5:00 p.m. (New York City time) on the
third Business Day preceding such redemption date.

The Company, at its option, and subject to the terms
and conditions provided in the Indenture, will be discharged from any and all
obligations in respect of the Notes of this Series (except for certain
obligations including obligations to register the transfer or exchange of Notes
of this Series, replace stolen, lost or mutilated Notes of this Series,
maintain paying agencies and hold monies for payment in trust, all as set forth
in the Indenture) if the Company deposits with the Trustee money, U.S.
Government Obligations which through the payment of interest thereon and
principal thereof in accordance with their terms will provide money, or a
combination of money and U.S. Government Obligations, in any event in an amount
sufficient, without reinvestment, to pay all the principal of and any premium
and interest on the Notes of this Series on the dates such payments are
due in accordance with the terms of the Notes of this Series.

If an Event of Default shall occur and be continuing with respect to
the Notes, the principal of and interest on the Notes may be declared due and
payable in the manner and with the effect provided in the Indenture and, upon
such declaration, the Trustee shall demand the redemption of the Senior Note
Mortgage Bonds to the extent provided in the Indenture.

The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modifications of the rights and obligations of the
Company and the rights of the Noteholders under the Indenture at any time by
the Company and the Trustee with the consent of the Holders of a majority in
aggregate principal amount of the outstanding Notes. Any such consent or waiver
by the Holder of this Note shall be conclusive and binding upon such Holder and
upon all future Holders of this Note and of any Note issued upon the
registration of transfer 

 A-6
 

 

hereof or in exchange therefor or in lieu thereof whether
or not notation of such consent or waiver is made upon this Note.

As set forth in and subject to the provisions of the Indenture, no
Holder of any Notes will have any right to institute any proceeding with
respect to the Indenture or for any remedy thereunder unless such Holder shall
have previously given to the Trustee written notice of a continuing Event of
Default with respect to such Notes, the Holders of a majority in aggregate
principal amount of the outstanding Notes affected by such Event of Default
shall have made written request and offered reasonable indemnity to the Trustee
to institute such proceeding as Trustee and the Trustee shall have failed to
institute such proceeding within 60 days; provided, however, that such
limitations do not apply to a suit instituted by the Holder hereof for the
enforcement of payment of the principal of and any premium or interest on this
Note on or after the respective due dates expressed herein.

No reference herein to the Indenture and to provisions of this Note or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and any premium and
interest on this Note at the times, places and rates and the coin or currency
prescribed in the Indenture.

As provided in the Indenture and subject to certain limitations therein
set forth, this Note may be transferred only as permitted by the legend hereto
and the provisions of the Indenture.

The Indenture and the Notes shall be governed by, and construed in
accordance with, the laws of the State of New York without regard to conflicts
of law principles thereof.

Unless the certificate of authentication hereon has been executed by
the Trustee, directly or through an Authenticating Agent by manual signature of
an authorized officer, this Note shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

All terms used in this Note that are defined in the Indenture shall
have the meanings assigned to them in the Indenture unless otherwise indicated
herein.

 A-7
 

 

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

	
   

  	
  ILLINOIS POWER COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  

 

	
  

  TRUSTEE’S CERTIFICATE

  	
   

  
	
  OF AUTHENTICATION

  	
   

  
	
   

  	
   

  
	
  Dated: June 14, 2006

  	
   

  
	
   

  	
   

  
	
  This Note is one of the Notes
  of the series herein

  	
   

  
	
  designated, described or
  provided for in the within-

  	
   

  
	
  mentioned Indenture.

  	
   

  
	
   

  	
   

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

  
	
   

  
	
  By

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  

 

 A-8
 

 

SCHEDULE I

[144A]*[REGULATION S]* GLOBAL SECURITY

The
initial principal amount of Notes evidenced by this Global Note is $                     .

CHANGES
TO PRINCIPAL AMOUNT OF NOTES EVIDENCED BY GLOBAL NOTE

	
  Date

  	
   

  	
  Principal Amount of

  Notes by which this

  Global Note is to be

  Reduced or Increased,

  and Reason for

  Reduction or Increase

  	
   

  	
  Remaining Principal

  Amount of Notes

  Represented by this

  Global Note

  	
   

  	
  Notation Made by

  
	
     

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
     

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
     

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
     

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
     

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
     

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
     

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
     

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
     

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
     

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
     

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
     

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
     

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

*                    Include
bracketed language only in a Private Note.

 A-9
 

 

EXHIBIT A-1

CERTIFICATE OF TRANSFER*

ILLINOIS
POWER COMPANY

6.25%
Senior Secured Notes due 2016

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

PLEASE INSERT SOCIAL SECURITY OR
OTHER

IDENTIFYING NUMBER OF ASSIGNEE

Name and address of assignee must be printed or typewritten.

	
  $

  

 

principal amount of beneficial
interest in the referenced Security of the Company and does hereby irrevocably
constitute and appoint to transfer the said beneficial interest in such
Security, with full power of substitution in the premises.

The undersigned certifies that
said beneficial interest in said Security is being resold, pledged or otherwise
transferred as follows:

(check
one)

o                        to the Company;

o                        to a Person whom the undersigned reasonably
believes is a qualified institutional buyer within the meaning of Rule 144A
under the Securities Act of 1933, as amended (the “Securities Act”), purchasing
for its own account or for the account of a qualified institutional buyer to
whom notice is given that the resale, pledge or other transfer is being made in
reliance on Rule 144A;

o                        in an offshore transaction in accordance with Rule 903
or 904 of Regulation S under the Securities Act;

o                        to an institution that is an “accredited investor”
as defined in Rule 501(a)(1), (2), (3) or (7) under the
Securities Act that is acquiring this Security for investment purposes and not
for distribution (attach a copy of an Institutional Accredited Investor
Certificate in the form annexed signed by an authorized officer of the
transferee);

o                        as otherwise permitted by the non-registration
legend appearing on this Security; or

o                        as otherwise agreed by the Company, confirmed in
writing to the Trustee, as follows: [describe]

	
  Dated:

  	
   

  	
   

  	
  Signature:  

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

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

  

 

*                    Include
this form of Certificate of Transfer only in a Private Note.

 A-10
 

 

SIGNATURE GUARANTEE

Signatures must be guaranteed by an “eligible guarantor institution”
meeting the requirement of the registrar, which requirements include membership
or participation in the Security Transfer Agent Medallion Program (“STAMP”) or
such other “signature guarantee program” as may be determined by the registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

 A-11
 

 

[FORM OF INSTITUTIONAL ACCREDITED INVESTOR CERTIFICATE]*

[Transferor
Name and Address]

Ladies
and Gentlemen:

In connection with our proposed purchase of 6.25% Senior Secured Notes
due 2016 (the “Notes”) issued by Illinois Power Company d/b/a AmerenIP (the “Issuer”),
we confirm that:

1.             We have received a copy of the
Offering Memorandum (the “Offering Memorandum”) relating to the Notes and such
other information as we deem necessary in order to make our investment decision.
We acknowledge that we have read and agree to the matters stated under the
caption NOTICE TO INVESTORS in such Offering Memorandum.

2.             We understand that any subsequent
transfer of the Notes is subject to certain restrictions and conditions set
forth in the indenture relating to the Notes (the “Indenture”) and as set forth
under NOTICE TO INVESTORS in the Offering Memorandum and the undersigned agrees
to be bound by, and not to resell, pledge or otherwise transfer the Notes
except in compliance with such restrictions and conditions and the Securities
Act of 1933, as amended (the “Securities Act”).

3.             We understand that
the offer and sale of the Notes have not been registered under the Securities
Act, and that the Notes may not be offered or sold except as permitted in the
following sentence. We agree, on our own behalf and on behalf of any accounts
for which we are acting as hereinafter stated, that if we sell any Notes, we
will do so only (A) to the Issuer, (B) so long as the Notes are
eligible for resale pursuant to Rule 144A under the Securities Act (“Rule 144A”),
to a person whom we reasonably believe is a “qualified institutional buyer”
within the meaning of Rule 144A that purchases for its own account or for
the account of a qualified institutional buyer to whom notice is given that the
resale, pledge or other transfer is being made in reliance on Rule 144A, (C) to
an institutional “accredited investor” (as defined below) that, prior to such
transfer, furnishes to the Trustee (as defined in the Indenture) a signed
letter containing certain representations and agreements relating to the
restrictions on transfer of the Notes (substantially in the form of this
letter), (D) in an offshore transaction in accordance with Rule 904
of Regulation S under the Securities Act, (E) pursuant to the exemption
from registration provided by Rule 144 under the Securities Act (if
available), or (F) in accordance with another applicable exemption from
the registration requirements of, or in a transaction not subject to, the
Securities Act or pursuant to an effective registration statement under the
Securities Act, and we further agree to provide to any person purchasing any of
the Notes from us a notice advising such purchaser that resales of the Notes
are restricted as stated herein.

*                    Include this
form only in a Private Note.

 A-12
 

 

4.             We understand that, on any proposed
resale of any Notes, we will be required to furnish to the Trustee and the
Issuer such certification and other information as the Trustee and the Issuer
may reasonably require to confirm that the proposed sale complies with the
foregoing restrictions. We further understand that the Notes purchased by us
will bear a legend to the foregoing effect.

5.             We are an institutional “accredited
investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under
the Securities Act) and have such knowledge and experience in financial and
business matters as to be capable of evaluating the merits and risks of our
investment in the Notes, and we and any accounts for which we are acting are
each able to bear the economic risk of our or its investment.

6.             We are acquiring the Notes
purchased by us for our own account or for one or more accounts (each of which
is an institutional “accredited investor”) as to each of which we exercise sole
investment discretion in each case for investment and not with a view to, or
for offer or sale in connection with, any distribution in violation of the
Securities Act.

You, the Issuer and the Trustee are entitled to rely upon
this letter and are irrevocably authorized to produce this letter or a copy
hereof to any interested party in any administrative or legal proceeding or
official inquiry with respect to the matters covered hereby.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 A-13

 

EXHIBIT
B

FORM OF DEFINITIVE NOTE

[non-registration legend to be included on Private Notes]

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”). THE HOLDER HEREOF, BY PURCHASING THIS
SECURITY, AGREES FOR THE BENEFIT OF THE COMPANY THAT THIS SECURITY MAY NOT
BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED PRIOR TO THE DATE WHICH IS TWO
YEARS AFTER THE LATER OF THE ORIGINAL ISSUANCE DATE THEREOF AND THE LAST DATE
ON WHICH THE COMPANY OR ANY AFFILIATE THEREOF WAS THE OWNER OF THIS SECURITY OR
THE EXPIRATION OF SUCH SHORTER PERIOD AS MAY BE PRESCRIBED BY RULE 144(k),
OR ANY SUCCESSOR PROVISION THEREOF, UNDER THE SECURITIES ACT (THE “RESALE
RESTRICTION TERMINATION DATE”) OTHER THAN (1) TO THE COMPANY, (2) IN
A TRANSACTION ENTITLED TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT, (3) SO LONG AS THIS SECURITY IS ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A
PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
WITHIN THE MEANING OF RULE 144A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A (AS
INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER
ON THE REVERSE OF THIS SECURITY), (4) IN AN OFFSHORE TRANSACTION IN
ACCORDANCE WITH RULE 903 OR 904 OF REGULATION S UNDER THE SECURITIES ACT (AS
INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER
ON THE REVERSE OF THIS SECURITY), (5) TO AN INSTITUTION THAT IS AN “ACCREDITED
INVESTOR” AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) UNDER THE
SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE
CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS SECURITY) THAT IS ACQUIRING THIS
SECURITY FOR INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION, AND A CERTIFICATE IN
THE FORM ATTACHED TO THIS SECURITY IS DELIVERED BY THE TRANSFEREE TO THE
COMPANY AND THE TRUSTEE OR (6) IN ACCORDANCE WITH ANOTHER APPLICABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT OR PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. AN INSTITUTIONAL
ACCREDITED INVESTOR HOLDING THIS SECURITY AGREES IT WILL FURNISH TO THE COMPANY
AND THE TRUSTEE SUCH CERTIFICATES AND OTHER INFORMATION AS THEY MAY REASONABLY
REQUIRE TO CONFIRM THAT ANY TRANSFER BY IT OF THIS SECURITY COMPLIES WITH THE
FOREGOING RESTRICTIONS. THE FOREGOING RESTRICTIONS ON RESALE WILL NOT APPLY
SUBSEQUENT TO THE RESALE RESTRICTION TERMINATION DATE. THE HOLDER OF THIS
SECURITY ACKNOWLEDGES THAT THE COMPANY RESERVES THE RIGHT

 B-1
 

 

PRIOR TO ANY
OFFER, SALE OR OTHER TRANSFER (1) PURSUANT TO CLAUSE (2) PRIOR TO THE
RESALE RESTRICTION TERMINATION DATE TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATIONS OR OTHER INFORMATION SATISFACTORY TO THE COMPANY AND (2) IN
EACH OF THE FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE AS TO COMPLIANCE
WITH CERTAIN CONDITIONS TO TRANSFER IS COMPLETED AND DELIVERED BY THE
TRANSFEROR TO THE COMPANY.

[Regulation S legend
to be included on Private Notes]

BY ITS ACQUISITION HEREOF, EACH HOLDER OF THIS SECURITY, AND EACH
PERSON THAT ACQUIRES A BENEFICIAL INTEREST IN SUCH SECURITY, AGREES THAT PRIOR
TO THE EXPIRATION OF THE DISTRIBUTION COMPLIANCE PERIOD (AS DEFINED IN THE
COMPANY ORDER ESTABLISHING THE TERMS OF THIS SECURITY), BENEFICIAL INTERESTS IN
THIS SECURITY MAY ONLY BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED (A) INSIDE
THE UNITED STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH
RULE 144A UNDER THE SECURITIES ACT OF 1933 OR (B) OUTSIDE THE UNITED
STATES IN COMPLIANCE WITH RULE 903 OR 904 UNDER THE SECURITIES ACT OF
1933 AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF
THE STATES OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION.

[registration rights
legend to be included on Private Notes]

BY ITS ACCEPTANCE OF THE SECURITIES EVIDENCED HEREBY OR A BENEFICIAL
INTEREST IN SUCH SECURITIES, THE HOLDER OF, AND ANY PERSON THAT ACQUIRES A
BENEFICIAL INTEREST IN, SUCH SECURITIES AGREES TO BE BOUND BY THE PROVISIONS OF
THE REGISTRATION RIGHTS AGREEMENT (THE “REGISTRATION RIGHTS AGREEMENT”) DATED
AS OF JUNE 14, 2006 AND RELATING TO THE REGISTRATION UNDER THE SECURITIES
ACT OF SECURITIES EXCHANGEABLE FOR THE SECURITIES EVIDENCED HEREBY AND
REGISTRATION OF THE SECURITIES EVIDENCED HEREBY.

 B-2
 

 

Illinois Commerce Commission ID No.: 6353

ILLINOIS
POWER COMPANY

6.25% SENIOR SECURED NOTE DUE 2016

	
  CUSIP: 452092CP2

  	
  PRINCIPAL AMOUNT: $75,000,000

  
	
  ISIN: US452092CP27

  	
   

  
	
   

  	
   

  
	
  ORIGINAL ISSUE DATE: June 14, 2006

  	
  MATURITY DATE: June 15,
  2016

  
	
   

  	
   

  
	
  INTEREST RATE: 6.25%

  	
  NUMBER: 1

  

ILLINOIS POWER COMPANY, a
corporation of the State of Illinois (the “COMPANY”), for value received hereby
promises to pay to CEDE & CO or registered assigns, the principal
amount specified above on the Maturity Date set forth above, and to pay
interest thereon from and including the Original Issue Date specified above or
from and including the most recent Interest Payment Date to which interest has
been paid or duly provided for, semi-annually in arrears on June 15th and December 15th in
each year, commencing December 15, 2006, and on the Maturity Date, at the
per annum interest rate set forth above until the principal hereof is paid or
made available for payment. [If the Company does not comply with certain of its
obligations under the Registration Rights Agreement, this bond shall, in
accordance with Section 2(e) of the Registration Rights Agreement,
bear additional interest (“Additional Interest”) in addition to the interest
provided for in the immediately preceding sentence. For purposes of this Note,
the term “interest” shall be deemed to include interest provided for in the
second immediately preceding sentence and Additional Interest, if any.]* No
interest shall accrue on the Maturity Date, so long as the principal amount of
this Note is paid in full on the Maturity Date. The interest so payable and
punctually paid or duly provided for on any such Interest Payment Date will
(except for interest payable on the Maturity Date set forth above or, if
applicable, upon redemption or acceleration), as provided in the Indenture (as
defined below), be paid to the Person in whose name this Note is registered at
the close of business on the Regular Record Date for such interest, which shall
be June 1 or December 1, as the case may be, next preceding such
Interest Payment Date; provided, that the first Interest Payment Date for any
part of this Note, the Original Issue Date of which is after a Regular Record
Date but prior to the applicable Interest Payment Date, shall be the Interest
Payment Date following the next succeeding Regular Record Date; and provided,
that interest payable on the Maturity Date set forth above or, if applicable,
upon redemption or acceleration, shall be payable to the Person to whom
principal shall be payable. Except as otherwise provided in the Indenture
(referred to on the reverse hereof), any such interest not so punctually paid
or duly provided for will forthwith cease to be payable to the Holder on such
Regular Record Date and shall be paid to the Person in whose name this Note is
registered at the close of business on a Special Record Date for the payment of
such defaulted interest to be fixed by the Trustee, notice whereof shall be
given to Noteholders not more than fifteen days nor fewer than ten days prior
to such Special Record Date. Principal, applicable premium and interest due at
the Maturity of this Note shall be

* Include bracketed language only in a Private
Note.

 B-3
 

 

payable in immediately
available funds when due upon presentation and surrender of this Note at the
corporate trust office of the Trustee or at the authorized office of any paying
agent in the Borough of Manhattan, The City and State of New York or St. Louis,
Missouri. Interest on this Note (other than interest payable at Maturity) shall
be paid by check payable in clearinghouse funds to the Holder as its name
appears on the register; provided, that if the Trustee receives a written
request from any Holder of Notes, the aggregate principal amount of all of
which having the same Interest Payment Date as this Note equals or exceeds
$10,000,000, on or before the applicable Regular Record Date for such Interest
Payment Date, interest on the Note shall be paid by wire transfer of
immediately available funds to a bank within the continental United States
(designated by such Holder in its request or by direct deposit into the account
of such Holder designated by such Holder in its request if such account is
maintained with the Trustee or any paying agent).

REFERENCE IS HEREBY MADE
TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH IN FULL ON THE REVERSE HEREOF,
WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET
FORTH IN FULL AT THIS PLACE.

Unless the certificate of
authentication hereon has been executed by the Trustee referred to on the
reverse hereof, directly or through an Authenticating Agent by manual signature
of an authorized officer, this Note shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

 B-4
 

 

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

	
  

  	
  ILLINOIS POWER COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  

 

	
  TRUSTEE’S CERTIFICATE

  
	
  OF AUTHENTICATION

  
	
   

  
	
  Dated: June 14, 2006

  
	
   

  
	
  This Note is one of the Notes
  of the series herein

  
	
  designated, described or
  provided for in the within-

  
	
  mentioned Indenture.

  
	
   

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

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  

 

 B-5
 

 

[FORM OF REVERSE OF NOTE]

ILLINOIS
POWER COMPANY

6.25%
SENIOR SECURED NOTE DUE 2016

This Note is one of a
duly authorized issue of 6.25% Senior Secured Notes due 2016 (the “NOTES OF
THIS SERIES”) of the Company issued and to be issued under an Indenture dated
as of June 1, 2006, between the Company and The Bank of New York Trust
Company, N.A., as trustee (herein called the “TRUSTEE”, which term includes any
successor Trustee under the Indenture) and indentures supplemental thereto
(collectively, the “INDENTURE”). Under the Indenture, one or more series of
notes may be issued and, as used herein, the term “Notes” refers to the Notes
of this Series. Reference is hereby made to the Indenture for a more complete
statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Noteholders and of
the terms upon which the Notes are and are to be authenticated and delivered.
This Note is one of the series designated on the face hereof, issued in the
initial aggregate principal amount of $75,000,000.

Prior to the Release Date
(as hereinafter defined), the Notes will be secured by mortgage bonds (the “SENIOR
NOTE MORTGAGE BONDS”) delivered by the Company to the Trustee for the benefit
of the Holders of the Notes, issued under the General  Mortgage Indenture and Deed of Trust, dated
as of November 1, 1992 between the Company and BNY Midwest Trust Company,
as successor trustee (the “MORTGAGE TRUSTEE”), as supplemented and modified
(collectively, the “MORTGAGE”). Reference is made to the Mortgage and the
Indenture for a description of the rights of the Trustee as holder of the
Senior Note Mortgage Bonds, the property mortgaged and pledged, the nature and
extent of the security and the rights of the holders of mortgage bonds, under
the Mortgage and the rights of the Company and of the Mortgage Trustee in
respect thereof, the duties and immunities of the Mortgage Trustee and the
terms and conditions upon which the Senior Note Mortgage Bonds are secured and
the circumstances under which additional mortgage bonds may be issued.

From and after such time
as all mortgage bonds (other than Senior Note Mortgage Bonds and other mortgage
bonds securing a related series of Notes) issued under the Mortgage have been
retired through payment, redemption or otherwise at, before or after the
maturity thereof (the “RELEASE
DATE”), the Senior Note Mortgage Bonds shall cease to secure the Notes
in any manner. In certain circumstances prior to the Release Date as provided
in the Indenture, the Company is permitted to reduce the aggregate principal
amount of a series of Senior Note Mortgage Bonds held by the Trustee, but in no
event prior to the Release Date to an amount less than the aggregate
outstanding principal amount of the series of Notes initially issued
contemporaneously with such Senior Note Mortgage Bonds.

Each Note of this Series shall
be dated and issued as of the date of its authentication by the Trustee and
shall bear an Original Issue Date. Each Note of this Series issued upon
transfer, exchange or substitution of such Note shall bear the Original Issue
Date of such transferred, exchanged or substituted Note, as the case may be.

Interest on this Note
will accrue from and including the Original Issue Date specified above to, but
excluding, December 15, 2006, and thereafter, from and including each
Interest

 B-6
 

 

Payment Date to, but excluding, the next succeeding
Interest Payment Date or the Maturity Date, as the case may be.

Interest payments for
this Note shall be computed on the basis of a 360-day year consisting of
twelve 30-day months. If any Interest Payment Date falls on a day that is
not a Business Day, the Interest Payment Date will be the next succeeding
Business Day (and without any interest or other payment in respect of any such
delay). If the Maturity Date of this Note or any redemption date falls on a day
that is not a Business Day, the payment of principal, premium, if any, and
interest will be made on the next succeeding Business Day, and no interest on
such payment shall accrue for the period from and after the Maturity Date or
such redemption date.

All or a portion of the
Notes of this Series may be redeemed at the option of the Company at any
time or from time to time. The redemption price for the Notes of this Series to
be redeemed on any redemption date will be equal to the greater of the
following amounts: (a) 100% of the principal amount of the Notes of this Series being
redeemed on the redemption date; or (b) the sum of the present values of
the remaining scheduled payments of principal and interest on the Notes of this
Series being redeemed on that redemption date (not including any portion
of any payments of interest accrued to the redemption date) discounted to the
redemption date on a semiannual basis at the Adjusted Treasury Rate (as defined
below) plus 20 basis points, as determined by the Reference Treasury Dealer (as
defined below); plus, in each case, accrued and unpaid interest thereon to the
redemption date. Notwithstanding the foregoing, installments of interest on
Notes of this Series that are due and payable on Interest Payment Dates
falling on or prior to a redemption date will be payable on the Interest
Payment Date to the Holder of this Note as of the close of business on the
relevant Regular Record Date. The redemption price will be calculated on the
basis of a 360-day year consisting of twelve 30-day months.

The Company shall mail
notice of any redemption at least 30 days but not more than 60 days before the
redemption date to each Holder of the Notes of this Series to be redeemed.
Unless the Company defaults in payment of the redemption price, on and after
the redemption date, interest will cease to accrue on the Notes of this Series or
portions thereof called for redemption.

“ADJUSTED TREASURY RATE”
means, with respect to any redemption date, the rate per annum equal to the
semiannual equivalent yield to maturity of the Comparable Treasury Issue,
assuming a price for the Comparable Treasury Issue (expressed as a percentage
of its principal amount) equal to the Comparable Treasury Price for such
redemption date.

“COMPARABLE TREASURY
ISSUE” means the United States Treasury security selected by the Reference
Treasury Dealer as having a maturity comparable to the remaining term of the
Notes of this Series to be redeemed that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of comparable maturity to the remaining
term of such Notes of this Series.

“COMPARABLE TREASURY
PRICE” means, with respect to any redemption date, (A) the average of the
Reference Treasury Dealer Quotations for such redemption date, after excluding
the highest and lowest such Reference Treasury Dealer Quotations, or (B) if
the

 B-7
 

 

Trustee obtains fewer than four such Reference
Treasury Dealer Quotations, the average of all such quotations, or (C) if
only one Reference Treasury Dealer Quotation is received, such quotation.

“REFERENCE TREASURY
DEALER” means (A) Goldman, Sachs & Co. or Lehman Brothers Inc. or
their respective affiliates which are primary U.S. Government securities
dealers in New York City (each, a “Primary Treasury Dealer”), and their
respective successors; provided, however, that if any of the foregoing shall
cease to be a Primary Treasury Dealer, the Company shall substitute therefor
another Primary Treasury Dealer; and (B) any other Primary Treasury Dealer(s) selected
by the Trustee after consultation with the Company.

“REFERENCE TREASURY
DEALER QUOTATIONS” means, with respect to each Reference Treasury Dealer and
any redemption date, the average, as determined by the Trustee, of the bid and
asked prices for the Comparable Treasury Issue (expressed in each case as a
percentage of its principal amount) quoted in writing to the Trustee by such
Reference Treasury Dealer at 5:00 p.m. (New York City time) on the third
Business Day preceding such redemption date.

The Company, at its
option, and subject to the terms and conditions provided in the Indenture, will
be discharged from any and all obligations in respect of the Notes of this Series (except
for certain obligations including obligations to register the transfer or
exchange of Notes of this Series, replace stolen, lost or mutilated Notes of
this Series, maintain paying agencies and hold monies for payment in trust, all
as set forth in the Indenture) if the Company deposits with the Trustee money,
U.S. Government Obligations which through the payment of interest thereon and
principal thereof in accordance with their terms will provide money, or a
combination of money and U.S. Government Obligations, in any event in an amount
sufficient, without reinvestment, to pay all the principal of and any premium
and interest on the Notes of this Series on the dates such payments are due
in accordance with the terms of the Notes of this Series.

If an Event of Default
shall occur and be continuing with respect to the Notes, the principal of and
interest on the Notes may be declared due and payable in the manner and with
the effect provided in the Indenture and, upon such declaration, the Trustee
shall demand the redemption of the Senior Note Mortgage Bonds to the extent
provided in the Indenture.

The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the
modifications of the rights and obligations of the Company and the rights of
the Noteholders under the Indenture at any time by the Company and the Trustee
with the consent of the Holders of a majority in aggregate principal amount of
the outstanding Notes. Any such consent or waiver by the Holder of this Note
shall be conclusive and binding upon such Holder and upon all future Holders of
this Note and of any Note issued upon the registration of transfer hereof or in
exchange therefor or in lieu thereof whether or not notation of such consent or
waiver is made upon this Note.

As set forth in and
subject to the provisions of the Indenture, no Holder of any Notes will have
any right to institute any proceeding with respect to the Indenture or for any
remedy thereunder unless such Holder shall have previously given to the Trustee
written notice of a continuing Event of Default with respect to such Notes, the
Holders of a majority in aggregate

 B-8
 

 

principal amount of the outstanding Notes affected by
such Event of Default shall have made written request and offered reasonable
indemnity to the Trustee to institute such proceeding as Trustee and the
Trustee shall have failed to institute such proceeding within 60 days;
provided, however, that such limitations do not apply to a suit instituted by
the Holder hereof for the enforcement of payment of the principal of and any
premium or interest on this Note on or after the respective due dates expressed
herein.

No reference herein to
the Indenture and to provisions of this Note or of the Indenture shall alter or
impair the obligation of the Company, which is absolute and unconditional, to
pay the principal of and any premium and interest on this Note at the times,
places and rates and the coin or currency prescribed in the Indenture.

As provided in the
Indenture and subject to certain limitations therein set forth, the transfer of
this Note is registrable in the Note register. Upon surrender of this Note for
registration or transfer at the corporate trust office of the Trustee or such
other office or agency as may be designated by the Company in the Borough of
Manhattan, the City and State of New York, or St. Louis, Missouri, endorsed by
or accompanied by a written instrument of transfer in form satisfactory to the
Company and the Note registrar, duly executed by the Holder hereof or the
attorney in fact of such Holder duly authorized in writing, one or more new
Notes of this Series of like tenor and of authorized denominations and for
the same aggregate principal amount will be issued to the designated transferee
or transferees.

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

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

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

The Indenture and the
Notes shall be governed by, and construed in accordance with, the laws of the
State of New York without regard to conflicts of law principles thereof.

All terms used in this
Note that are defined in the Indenture shall have the meanings assigned to them
in the Indenture unless otherwise indicated herein.

 B-9
 

 

ABBREVIATIONS

The following
abbreviations, when used in the inscription on the face of this instrument,
shall be construed as though they were written out in full according to
applicable laws or regulations:

	
  TEN COM — as tenants in common

  	
  UNIF GIFT

  	
   

  	
   

  	
   

  
	
   

  	
  MIN ACT -

  	
   

  	
  Custodian

  	
   

  
	
   

  	
   

  	
  (Cust)

  	
   

  	
  (Minor)

  
	
  TEN ENT — as tenants by the

  	
   

  	
   

  
	
  entireties

  	
  Under Uniform Gifts to Minors

  	
   

  
	
   

  	
   

  
	
  JT TEN — as joint tenants with right

  	
   

  
	
  of survivorship and not as tenants in

  	
   

  
	
  common

  	
   

  
	
   

  	
  State

  

 

Additional
abbreviations may also be used

though not in the above list.

 B-10
 

 

CERTIFICATE OF TRANSFER*

ILLINOIS POWER COMPANY

6.25%
Senior Secured Notes due 2016

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

PLEASE INSERT SOCIAL SECURITY OR
OTHER

IDENTIFYING NUMBER OF ASSIGNEE

 

Name
and address of assignee must be printed or typewritten.

$

principal amount of beneficial
interest in the referenced Security of the Company and does hereby irrevocably
constitute and appoint to transfer the said beneficial interest in such
Security, with full power of substitution in the premises.

The undersigned certifies that
said beneficial interest in said Security is being resold, pledged or otherwise
transferred as follows:

(check
one)

o      to the
Company;

o      to a
Person whom the undersigned reasonably believes is a qualified institutional
buyer within the meaning of Rule 144A under the Securities Act of 1933, as
amended (the “Securities Act”), purchasing for its own account or for the
account of a qualified institutional buyer to whom notice is given that the
resale, pledge or other transfer is being made in reliance on Rule 144A;

o      in an offshore
transaction in accordance with Rule 903 or 904 of Regulation S under the
Securities Act;

o      to an
institution that is an “accredited investor” as defined in Rule 501(a)(1),
(2), (3) or (7) under the Securities Act that is acquiring this
Security for investment purposes and not for distribution (attach a copy of an
Institutional Accredited Investor Certificate in the form annexed signed by an
authorized officer of the transferee);

o      as
otherwise permitted by the non-registration legend appearing on this Security;
or

o      as
otherwise agreed by the Company, confirmed in writing to the Trustee, as
follows: [describe]

	
  Dated:

  	
   

  	
   

  	
  Signature:

  	
   

  
	
   

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

  

* Include this form
of Certificate of Transfer only in a Private Note.

 B-11
 

 

SIGNATURE GUARANTEE

Signatures
must be guaranteed by an “eligible guarantor institution” meeting the
requirement of the registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program (“STAMP”) or
such other “signature guarantee program” as may be determined by the registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

 B-12
 

 

[FORM OF INSTITUTIONAL ACCREDITED INVESTOR CERTIFICATE]*

[Transferor
Name and Address]

Ladies
and Gentlemen:

In
connection with our proposed purchase of 6.25% Senior Secured Notes due 2016
(the “Notes”) issued by Illinois Power Company d/b/a AmerenIP (the “Issuer”),
we confirm that:

1.             We have received a copy of the Offering Memorandum (the “Offering
Memorandum”) relating to the Notes and such other information as we deem
necessary in order to make our investment decision. We acknowledge that we have
read and agree to the matters stated under the caption NOTICE TO INVESTORS in
such Offering Memorandum.

2.             We understand that any subsequent transfer of the Notes
is subject to certain restrictions and conditions set forth in the indenture
relating to the Notes (the “Indenture”) and as set forth under NOTICE TO
INVESTORS in the Offering Memorandum and the undersigned agrees to be bound by,
and not to resell, pledge or otherwise transfer the Notes except in compliance
with such restrictions and conditions and the Securities Act of 1933, as
amended (the “Securities Act”).

3.             We understand that the offer and sale of the Notes have
not been registered under the Securities Act, and that the Notes may not be
offered or sold except as permitted in the following sentence. We agree, on our
own behalf and on behalf of any accounts for which we are acting as hereinafter
stated, that if we sell any Notes, we will do so only (A) to the Issuer, (B) so
long as the Notes are eligible for resale pursuant to Rule 144A under the
Securities Act (“Rule 144A”), to a person whom we reasonably believe is a “qualified
institutional buyer” within the meaning of Rule 144A that purchases for
its own account or for the account of a qualified institutional buyer to whom
notice is given that the resale, pledge or other transfer is being made in
reliance on Rule 144A, (C) to an institutional “accredited investor”
(as defined below) that, prior to such transfer, furnishes to the Trustee (as
defined in the Indenture) a signed letter containing certain representations
and agreements relating to the restrictions on transfer of the Notes
(substantially in the form of this letter), (D) in an offshore transaction
in accordance with Rule 904 of Regulation S under the Securities Act, (E) pursuant
to the exemption from registration provided by Rule 144 under the
Securities Act (if available), or (F) in accordance with another
applicable exemption from the registration requirements of, or in a transaction
not subject to, the Securities Act or pursuant to an effective registration
statement under the Securities Act, and we further agree to provide to any
person purchasing any of the Notes from us a notice advising such purchaser
that resales of the Notes are restricted as stated herein.

* Include this form
only in a Private Note.

 B-13
 

 

4.             We understand that, on any proposed resale of any Notes,
we will be required to furnish to the Trustee and the Issuer such certification
and other information as the Trustee and the Issuer may reasonably require to
confirm that the proposed sale complies with the foregoing restrictions. We
further understand that the Notes purchased by us will bear a legend to the
foregoing effect.

5.             We are an institutional “accredited investor” (as
defined in Rule 501(a)(1), (2), (3) or (7) under the Securities
Act) and have such knowledge and experience in financial and business matters
as to be capable of evaluating the merits and risks of our investment in the
Notes, and we and any accounts for which we are acting are each able to bear
the economic risk of our or its investment.

6.             We are acquiring the Notes purchased by us for our own
account or for one or more accounts (each of which is an institutional “accredited
investor”) as to each of which we exercise sole investment discretion in each
case for investment and not with a view to, or for offer or sale in connection
with, any distribution in violation of the Securities Act.

You, the Issuer and the Trustee are entitled to rely upon this letter and
are irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 B-14

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