Document:

EXHIBIT 4.2
       MACDERMID'S CREDIT AGREEMENT - SIXTH AMENDMENT WITH BANK OF AMERICA
                                 SIXTH AMENDMENT
This  SIXTH  AMENDMENT  (this  "Amendment")  to the Credit Agreement (as defined
                                ---------
below)  is  entered  into  as  of  November  9,  2001  by  and  among  MacDERMID
INCORPORATED,  a  Connecticut corporation (the "Company"), the several financial
                                                -------
institutions  party  hereto  (collectively,  with  Bank  of  America,  N.A., the
"Lenders";  individually a "Lender"), BANK OF AMERICA, N.A., as letter of credit
       -                    ------
issuing  bank,  swing  line lender and administrative agent for the Lenders (the
"Administrative  Agent")  and  BANC OF AMERICA SECURITIES, LLC, as lead arranger
 --------------------
and  book manager.  Unless otherwise specified herein, capitalized terms used in
this  Amendment shall have the meanings ascribed to them by the Credit Agreement
(as  defined  below).
PRELIMINARY  STATEMENTS:
(1)     The  Company,  the  Lenders  from  time  to  time  party thereto and the
Administrative  Agent are party to the Second Amended and Restated Multicurrency
Credit  Agreement,  dated  as  of  October  25, 1998, amended and restated as of
December  15,  1998  and  further  amended  and restated as of June 15, 1999 (as
amended  by  the  First  Amendment  dated  as  of September 24, 1999, the Second
Amendment dated as of November 12, 1999, the Third Amendment and Waiver dated as
of  June  2,  2000,  the  Fourth Amendment dated as of December 19, 2000 and the
Fifth Amendment dated as of May 25, 2001 and as the same may be further amended,
supplemented,  restated  or  otherwise  modified from time to time in accordance
with  its  terms  and  in  effect,  the  "Credit  Agreement");  and
                                          -----------------
(2)     The Company, the Administrative Agent and the Majority Lenders desire to
make  certain  amendments  to  the  Credit  Agreement  as  specified  below.
NOW,  THEREFORE,  in consideration of the mutual execution hereof and other good
and  valuable  consideration,  the  parties  hereto  agree  as  follows
     SECTION  1.     Amendments  to  Credit  Agreement
The  Credit  Agreement  is  hereby  amended, effective as of the Sixth Amendment
Effective  Date  in  accordance  with  Section  4  hereof,  as  follows:
                                       ----------
1.1  New Definitions.  Section 1.01 of the Credit Agreement is hereby amended by
     ---------------
adding  the  following  definitions  in  the  proper  alphabetical  location:
"Level  VI"  shall exist at any time the Leverage Ratio is equal to or less than
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2.5:1.0  but  greater  than  2.0:1.0.
"Level  VII" shall exist at any time the Leverage Ratio is equal to or less than
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2.0:1.0.
"Mortgage  Policies"  has  the  meaning  specified  in  Section  7.19(b).
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"Mortgages"  has  the  meaning specified in Section 2(d) of the Sixth Amendment.
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"Permitted  Encumbrances"  has  the  meaning  specified  in  the  Mortgages.
 -----------------------
"Secured  Parties"  has  the  meaning  specified  in  the  Security  Agreement.
 ----------------
"Security  Agreement"  has  the  meaning  specified in Section 2(c) of the Sixth
 -------------------
Amendment.
"Sixth  Amendment" means that certain Sixth Amendment to this Agreement dated as
 ----------------
of  November  9,  2001.
"Sixth  Amendment  Effective  Date" has the meaning assigned to that term in the
 ---------------------------------
Sixth  Amendment.

1.2     Amended  Definitions.
        --------------------
     (a)     Aggregate  Revolving Loan Commitment.  The definition of "Aggregate
             ------------------------------------
Revolving  Loan  Commitment" is hereby deleted in its entirety and replaced with
the  following  new  definition:
"Aggregate  Revolving  Loan  Commitment"  means  the  aggregate  Revolving  Loan
 --------------------------------------
Commitments  of  the  Lenders  equal to One Hundred Seventy Five Million Dollars
($175,000,000),  as  the  same  may  be  reduced  pursuant  to  Section  2.05.

     (b)     Applicable  Margin.  The  definition  of  "Applicable  Margin"  in
             -------------------
Section 1.01 of the Credit Agreement is hereby amended (i) by deleting the chart
in  its  entirety  and  by  adding  the  following  new  chart  thereto:
<TABLE>
<CAPTION>

<S>    <C>               <C>                   <C>
Level  Base Rate Loans   Offshore Rate Loans   Commitment Fee
I                 2.00%                 3.00%            0.75%
II                1.75%                 2.75%            0.75%
III               1.25%                 2.25%            0.50%
IV                1.00%                 2.00%           0.375%
V                 0.75%                 1.75%           0.275%
VI                0.50%                 1.50%            0.25%
VII               0.25%                 1.25%            0.25%
</TABLE>

and  (ii)  by  deleting  the first proviso thereto and substituting therefor the
following:  "provided,  however,  that the Applicable Margin shall be determined
             --------   -------
pursuant  to  the  most  recent  Compliance  Certificate;  and"
     (c)     Collateral  Documents.  The definition of "Collateral Documents" in
             ---------------------
Section  1.01  of  the  Credit  Agreement  is hereby deleted in its entirety and
replaced  with  the  following  new  definition:
"Collateral  Documents"  means,  collectively (if and when each such document is
 ---------------------
required  to  be  executed  and  delivered hereunder), (a) each Credit Agreement
Guaranty,  the  Pledge Agreements, the Security Agreement, the Mortgages and all
other  pledge  agreements,  security agreements, mortgages, guarantees and other
similar agreements between a Borrower or its Subsidiaries and the Lenders or the
Administrative  Agent,  for the benefit of the Secured Parties, now or hereafter
delivered  to  the  Lenders  or  the  Administrative  Agent  pursuant  to  or in
connection  with  the  transactions  contemplated  hereby,  and  all  financing
statements  (or  comparable  documents now or hereafter filed in accordance with
the  Uniform Commercial Code or comparable law) against a Borrower or any of its
Subsidiaries  as debtor in favor of the Lenders or the Administrative Agent, for
the  benefit  of  the  Secured  Parties,  and  (b)  any amendments, supplements,
modifications,  renewals,  replacements,  consolidations,  substitutions  and
extensions  of  any  of  the  foregoing.
     (d)     Consolidated  EBIT.  The  definition  of  "Consolidated  EBIT"  in
             ------------------
Section  1.01  of  the  Credit  Agreement  is hereby deleted in its entirety and
replaced  with  the  following  new  definition:
"Consolidated EBIT" means, for any period, the sum of Consolidated Net Income of
 -----------------
the  Company  and its Consolidated Subsidiaries for such period, plus (i) to the
extent  incurred  during  such  period  by the Company and its Subsidiaries, any
one-time  non-cash charges not in excess of $30,000,000 in the aggregate for all
test  periods, (ii) to the extent incurred during such period by the Company and
its  Subsidiaries, any one-time non-cash charges not in excess of $40,000,000 in
connection  with  the  write  down of intangible assets in the aggregate for all
test  periods,  (iii)  Consolidated Interest Expense, (iv) consolidated taxes of
the  Company  and  its  Consolidated Subsidiaries for such period and (v) to the
extent  incurred  during such period by the Company and its Subsidiaries, losses
incurred  in  connection with the operations of Dynacircuits; provided, however,
                                                              --------  -------
that  for  all  purposes  for  any  businesses  acquired  (whether  by  purchase
accounting  or  pooling  accounting)  during  the  period  of  determination,
Consolidated EBIT for such period shall be determined on a pro forma basis as if
such  acquisition  had  occurred  as  of the beginning of such period (including
synergies  agreed  to by the Administrative Agent in its reasonable discretion);
provided,  further, that without the consent of the Administrative Agent and the
-------   -------
Majority  Lenders,  the  Consolidated  EBIT  being added as a result of any such
acquisition  shall  not  exceed  (a)  in  the case that only unaudited financial
statements  are  available  with respect to the assets, Person or division being
acquired  (whether by merger, stock or asset purchase, or otherwise), the amount
of  Consolidated  EBIT  of  the acquiree on a stand alone basis being added from
such  acquisition  shall  not  exceed  15% of the otherwise applicable amount of
Consolidated  EBIT of the Company and its Subsidiaries (other than the acquiree)
taken  as  a  whole,  or  (b) in the instance that unqualified audited financial
statements  in accordance with GAAP are available for the acquiree, then 100% of
the  Consolidated  EBIT  of  the  acquiree.
     (e)     Consolidated  EBITDA.  The  definition  of "Consolidated EBITDA" in
             --------------------
Section  1.01  of  the  Credit  Agreement  is hereby deleted in its entirety and
replaced  with  the  following  new  definition:
"Consolidated  EBITDA" means, for any period, the sum of Consolidated Net Income
 --------------------
of  the  Company  and its Consolidated Subsidiaries for such period, plus (i) to
the  extent  incurred during such period by the Company and its Subsidiaries and
not  for  determination  of  the Leverage Ratio related to pricing Levels in the
Applicable  Margin  definition,  any  one-time non-cash charges not in excess of
$30,000,000  in  the aggregate for all test periods, (ii) to the extent incurred
during  such  period  by the Company and its Subsidiaries, any one-time non-cash
charges  not  in  excess  of  $40,000,000  in  connection with the write down of
intangible  assets  in  the  aggregate  for all test periods, (iii) Consolidated
Interest  Expense, (iv) consolidated depreciation and amortization expense, (iv)
consolidated  taxes  of  the  Company and its Consolidated Subsidiaries for such
period  and (v) to the extent incurred during such period by the Company and its
Subsidiaries, losses incurred in connection with the operations of Dynacircuits;
provided, however, that for all purposes for any businesses acquired (whether by
--------  -------
purchase  accounting  or pooling accounting) during the period of determination,
Consolidated  EBITDA for such period shall be determined on a pro forma basis as
if  such  acquisition had occurred as of the beginning of such period (including
synergies  agreed  to by the Administrative Agent in its reasonable discretion);
provided,  further, that without the consent of the Administrative Agent and the
-------   -------
Majority  Lenders,  the  Consolidated EBITDA being added as a result of any such
acquisition  shall  not  exceed  (a)  in  the case that only unaudited financial
statements  are  available  with respect to the assets, Person or division being
acquired  (whether by merger, stock or asset purchase, or otherwise), the amount
of  Consolidated  EBITDA of the acquiree on a stand alone basis being added from
such  acquisition  shall  not  exceed  15% of the otherwise applicable amount of
Consolidated  EBITDA  of  the  Company  and  its  Subsidiaries  (other  than the
acquiree)  taken  as  a  whole,  or (b) in the instance that unqualified audited
financial  statements  in  accordance  with GAAP are available for the acquiree,
then  100%  of  the  Consolidated  EBITDA  of  the  acquiree.
     (f)     Eligible  Borrower.  The  definition  of  "Eligible  Borrower"  in
             ------------------
Section  1.01  of  the  Credit  Agreement  is  hereby  amended  by (i) inserting
immediately after the word "means" in the first sentence thereof the phrase "(i)
the  Company  and  (ii)" and (ii) inserting immediately after the phrase "and in
each  case"  in  the first sentence thereof the phrase "described in this clause
(ii)".
     (g)     GAAP.  The  definition  of  "GAAP"  in  Section  1.01 of the Credit
             ----
Agreement  is hereby deleted in its entirety and replaced with the following new
definition:
"GAAP"  means  U.S. generally accepted accounting principles set forth from time
 ----
to  time  in  the opinions and pronouncements of the Accounting Principles Board
and  the  American  Institute of Certified Public Accountants and statements and
pronouncements  of  the  Financial  Accounting Standards Board (or agencies with
similar  functions  of  comparable  stature  and  authority  within  the  U.  S.
accounting profession), which are applicable to the circumstances as of the date
of  determination;  provided,  however,  that  for  purposes of all computations
                    --------   -------
required  to  be  made  with  respect to compliance by the Company with Sections
                                                                        --------
9.01,  9.02  and  9.03,  such  term  shall  mean  generally  accepted accounting
----   ----       ----
principles  as  in  effect  on  the  date  of this Agreement applied in a manner
consistent  with those used in preparing the financial statements referred to in
Section 6.05(a), except that such computations shall give effect to the adoption
of  FAS  142  (Accounting for Goodwill and Intangible Assets) from and after the
Sixth  Amendment  Effective  Date.
     (h)     Pricing Levels.  The definitions of "Level", "Level I", "Level II",
             --------------
"Level  III",  "Level  IV",  and "Level V" are respectively deleted and replaced

with  the  following  definitions:
"Level"  means,  and  includes, Level I, Level II, Level III, Level IV, Level V,
 -----
Level  VI  or  Level  VII,  whichever  is  in  effect  at  the  relevant  time.
"Level  I"  shall  exist at any time the Leverage Ratio is greater than 4.5:1.0.
 --------
"Level  II"  shall exist at any time the Leverage Ratio is equal to or less than
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4.5:1.0  but  greater  than  4.00:1.0.
"Level  III" shall exist at any time the Leverage Ratio is equal to or less than
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4.0:1.0  but  greater  than  3.5:1.0.
"Level  IV"  shall exist at any time the Leverage Ratio is equal to or less than
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3.5:1.0  but  greater  than  3.0:1.0.
"Level  V"  shall  exist at any time the Leverage Ratio is equal to or less than
 --------
3.0:1.0  but  greater  than  2.5:1.0.
     (i)     Subsidiary  Guarantor.  The definition of "Subsidiary Guarantor" in
Section  1.01  of  the  Credit  Agreement  is hereby deleted in its entirety and
replaced  with  the  following  new  definition:

"Subsidiary  Guarantor"  means, collectively, (a) each Domestic Subsidiary whose
 ---------------------
tangible  assets  or revenue constitutes 2% or more of the total tangible assets
or  the  total revenue, as applicable, of the Company and its Subsidiaries taken
as a whole and (b) to the extent required pursuant to Section 7.11, each Foreign
                                                      ------------
Subsidiary.
1.3     Section  2.01(c)(ii).  Section  2.01(c)(ii)  of  the Credit Agreement is
        --------------------
hereby  amended  by  deleting  the text thereof in its entirety and replacing it
with  the  words  "intentionally  omitted".
1.4     Section 2.07 Termination of Commitments; Mandatory Prepayments of Loans;
        ------------------------------------------------------------------------
and  Mandatory  Commitment  Reductions.  Section 2.07 of the Credit Agreement is
--------------------------------------
hereby  amended  by (a) deleting the parenthetical in sub-clause (iii) of clause
(f)  thereof and replacing it with "(with a reduction in the Aggregate Revolving
Loan  Commitment  as  set  forth in clause (l) below)" and (b) adding to the end
thereof  the  following  new  clause  (l):
(l)     If  the  ratio of Consolidated Total Debt to Consolidated EBITDA is 3.50
to  1.00 or greater at the time of an Asset Disposition, the aggregate Revolving
Loan Commitments shall be automatically and permanently reduced on the date, and
in  an  aggregate amount equal to 50%, of the prepayment of Loans required to be
made  (whether  or not such prepayment is not made because all outstanding Loans
have  been  repaid  or  prepaid) pursuant to Section 2.07(f), provided, however,
                                                              --------  -------
that if the ratio of Consolidated Total Debt to EBITDA is less than 3.50 to 1.00
at  the  time  of  an  Asset  Disposition,  no  reduction  in the Revolving Loan
Commitments  shall  occur.
1.5     Section 7.01.  Section 7.01 of the Credit Agreement is hereby amended by
        ------------
adding  to  the  end  thereof  the  following  new  clause  (l):
(l)     simultaneously  with  the  delivery  of each set of financial statements
referred  to in Sections 7.01(a) and 7.01(b), a supplement to Schedule IV to the
                ----------------     -------
Security  Agreement  setting  forth the After-Acquired Intellectual Property (as
defined  in  the  Security  Agreement)  referred  to in Section 9(b)(iii) of the
Security  Agreement.
1.6     Section  8.01(h).  Section  8.01(h)  of  the  Credit Agreement is hereby
        ----------------
deleted  in  its  entirety.
1.7     Section  8.03(i).  Section  8.03(i)  of  the  Credit Agreement is hereby
        ----------------
amended  by  deleting the text thereof in its entirety and replacing it with the
words  "Intentionally  omitted".
1.8     Section  8.04  Negative Pledge.  Section 8.04 of the Credit Agreement is
        ------------------------------
hereby amended by (i) deleting clause (c) thereof and replacing such clause with
the  following  new  clause  (c):
(c)     Liens  not  in  excess  of 15% of Tangible Assets securing (i) factoring
programs of Foreign Subsidiaries in an aggregate amount up to $20 million at any
time  outstanding  and  (ii)  Debt permitted by Section 8.01(c) provided that no
                                                                --------
such  Lien  shall  extend to or cover any Collateral and provided, further, that
                                                         --------  -------
Liens  permitted  under this clause (c) shall at all times be limited such that,
after  giving  effect to such Liens, the credit lines set forth on Schedule I to
the Sixth Amendment are or could be secured by Liens permitted under this clause
(c)  (or  any  replacement,  extension  or  renewal of such credit lines without
increase  in  the  amount  or  change  in any direct or contingent obligor); and
and  (ii)  adding  to  the  end  thereof  the  following  new  clause  (f):
(f)     Liens  existing  or  created  pursuant  to  the  Collateral  Documents.
1.9     Section  8.05(b)(ii).  Section  8.05(b)(ii)  of  the Credit Agreement is
        --------------------
hereby  amended  in  full  to  read  as  follows:
     (ii)     the  Company  or  any  Subsidiary  may make Asset Dispositions the
aggregate  net  proceeds of which received by the Company after the Announcement
Date  shall  not exceed (x) $17,500,000 (other than an Asset Disposition subject
to  the  following clause (y)) (and, subject to compliance with Section 2.07(f),
                                                                ---------------
the  Lenders  hereby  agree not to unreasonably withhold their consent for Asset
Dispositions  in excess of such aggregate amount) and (y) 15% of Tangible Assets
with  respect to Asset Dispositions consisting of equipment in connection with a
sale-leaseback  transaction pursuant to which the Company or a Subsidiary of the
Company  will  be  the  lessee.
1.10     Section  9.01 Consolidated EBIT to Consolidated Interest Expense Ratio.
         ----------------------------------------------------------------------
Section  9.01  of  the  Credit  Agreement  is hereby deleted in its entirety and
replaced  with  the  following  new  Section  9.01:
9.01     Consolidated  EBIT  to  Consolidated  Interest  Expense  Ratio.
         --------------------------------------------------------------
The  ratio  of  Consolidated EBIT to Consolidated Interest Expense tested at the
end  of  each  fiscal  quarter  for the preceding four fiscal quarters shall not
during  the  periods  set  forth  below  be  less  than  the  following:
<TABLE>
<CAPTION>

<S>                                         <C>

Period                                      Ratio
------------------------------------------  ------------
October 1, 2001 through December 31, 2001   1.50 to 1.00
January 1, 2002 through September 30, 2002  1.25 to 1.00
October 1, 2002 through December 31, 2002   1.50 to 1.00
January 1, 2003 and thereafter              1.75 to 1.00
</TABLE>

1.11     Section  9.03  Maximum Total Debt to Consolidated EBITDA.  Section 9.03
         --------------------------------------------------------
of  the Credit Agreement is hereby deleted in its entirety and replaced with the
following  new  Section  9.03:
9.03     Maximum  Total  Debt  to  Consolidated  EBITDA.
         ----------------------------------------------
The ratio of Consolidated Total Debt to Consolidated EBITDA tested at the end of
each  fiscal quarter for the preceding four fiscal quarters shall not during the
periods  set  forth  below  exceed  the  following:
<TABLE>
<CAPTION>

<S>                                   <C>

Period                                Ratio
------------------------------------  ------------
October 1, 2001 to June 30, 2002      4.75 to 1.00
July 1, 2002 to September 30, 2002    4.50 to 1.00
October 1, 2002 to December 31, 2002  4.25 to 1.00
January 1, 2003 and thereafter        4.00 to 1.00
</TABLE>

provided  that  on  and  after  the  date  the Administrative Agent releases any
--------
Collateral  from the assignment and security interest granted under the Security
Agreement  and  the  Mortgages in accordance with Section 12.20(b), the ratio of
Adjusted  Consolidated  Total  Debt  to Consolidated EBITDA tested at the end of
each fiscal quarter for the preceding four fiscal quarters shall not exceed 4.00
to  1.00.
1.12     Addition of Affirmative Covenants.  Article VII of the Credit Agreement
         ---------------------------------
is  amended  by  adding  to  the  end  thereof  the  following  new  covenants:
7.15     Covenant  to  Guarantee  Obligations  and  Give Security.  Upon (x) the
         --------------------------------------------------------
request  of  the  Administrative  Agent  following the occurrence and during the
continuance  of  a  Default  or  an  Event  of  Default,  (y)  the  formation or
acquisition  of  any  new  direct  Subsidiaries  organized under the laws of the
United  States by the Company or any Subsidiary Guarantor or (z) the acquisition
of  any  property  located in the United States having an aggregate value in any
one  or  series  of related transactions in excess of $500,000 by the Company or
any  Subsidiary  Guarantor,  and  such  property,  in  the  judgment  of  the
Administrative Agent, shall not already be subject to a perfected first priority
security  interest  in  favor of the Administrative Agent for the benefit of the
Secured  Parties, then the Company shall, in each case at the Company's expense:
     (a)     in  connection  with  the  formation  or  acquisition  of  a direct
Subsidiary  organized  under the laws of the United States, within 20 days after
such  formation or acquisition, cause such Subsidiary, and cause each direct and
indirect  parent  of  such  Subsidiary  that  is organized under the laws of the
United  States  (if  it has not already done so), to duly execute and deliver to
the  Administrative  Agent  a  guaranty  or  guaranty  supplement,  in  form and
substance  reasonably satisfactory to the Administrative Agent, guaranteeing the
obligations  of  the  Company,  the  other  Borrowers  and  the other Subsidiary
Guarantors,  under  the  Loan  Documents,
(b)     within  10 days after such request, formation or acquisition, furnish to
the  Administrative  Agent  a  description  of  the real and personal properties
located  in  the  United  States  of  the Company and its Subsidiaries in detail
satisfactory  to  the  Administrative  Agent,
(c)     within  20  days  after  such  request,  formation  or acquisition, duly
execute  and  deliver, and cause each such direct Subsidiary organized under the
laws of the United States and each direct and indirect parent of such Subsidiary
(if  it  has  not  already  done  so)  to  duly  execute  and  deliver,  to  the
Administrative  Agent  mortgages,  pledges,  assignments,  security  agreement
supplements  and  other  security  agreements,  as  specified by and in form and
substance  reasonably satisfactory to the Administrative Agent, securing payment
of  all  the  Obligations  of  the  Company,  each  other  Borrower,  each other
Subsidiary  Guarantor, such Subsidiary or such parent, as the case may be, under
the  Loan  Documents  and  constituting  Liens  on  all  such  properties,
(d)     within  30  days after such request, formation or acquisition, take, and
cause  such  direct  Subsidiary organized under the laws of the United States or
such  parent  to  take,  whatever  action  (including,  without  limitation, the
recording  of  mortgages,  the  filing  of  Uniform  Commercial  Code  financing
statements,  the  giving  of  notices  and  the  endorsement of notices on title
documents)  may  be  necessary  or  reasonably  advisable  in the opinion of the
Administrative  Agent  to  vest  in  the  Administrative  Agent  (or  in  any
representative of the Administrative Agent designated by it), for the benefit of
the  Secured  Parties, valid and subsisting Liens on the properties purported to
be  subject  to  the  mortgages,  pledges,  assignments,  security  agreement
supplements  and  security  agreements  delivered pursuant to this Section 7.15,
enforceable  against  all  third  parties  in  accordance  with  their  terms,
(e)     within  60 days after such request, formation or acquisition, deliver to
the  Administrative  Agent,  upon the request of the Administrative Agent in its
sole  discretion,  a  signed  copy  of  a  favorable  opinion,  addressed to the
Administrative  Agent  and the other Secured Parties, of counsel for the Company
acceptable  to  the  Administrative Agent as to the matters contained in clauses
(a),  (c) and (d) above, as to such guaranties, guaranty supplements, mortgages,
pledges,  assignments,  security  agreement  supplements and security agreements
being  legal,  valid  and binding obligations of the Company and each Subsidiary
Guarantor  party  thereto  enforceable in accordance with their terms, as to the
matters  contained in clause (d) above, as to such recordings, filings, notices,
endorsements  and other actions being sufficient to create valid perfected Liens
on such properties, and as to such other matters as the Administrative Agent may
reasonably  request,  and
(f)     at  any time and from time to time, promptly execute and deliver any and
all  further  instruments  and  documents  and take all such other action as the
Administrative Agent may reasonably deem necessary or desirable in obtaining the
full benefits of, or in perfecting and preserving the Liens of, such guaranties,
mortgages,  pledges,  assignments,  security  agreement supplements and security
agreements.
7.16     Further  Assurances.  (a)  Promptly  upon request by the Administrative
         -------------------
Agent,  correct,  and  cause  each  of its Subsidiaries promptly to correct, any
material  defect  or error that may be discovered in any Loan Document or in the
execution,  acknowledgment,  filing  or  recordation  thereof,  and
(b)     Promptly  upon  request  by  the  Administrative  Agent,  do,  execute,
acknowledge, deliver, record, re-record, file, re-file, register and re-register
any and all such further acts, deeds, conveyances, pledge agreements, mortgages,
deeds of trust, trust deeds, assignments, financing statements and continuations
thereof, termination statements, notices of assignment, transfers, certificates,
assurances  and  other  instruments  as  the Administrative Agent may reasonably
require  from  time  to  time  in  order  to  (A) carry out more effectively the
purposes  of  the  Loan  Documents,  (B)  to  the  fullest  extent  permitted by
applicable  law, subject the Company's and each of its Subsidiaries' properties,
assets, rights or interests to the Liens now or hereafter intended to be covered
by  any  of  the  Collateral  Documents,  (C) perfect and maintain the validity,
effectiveness  and  priority  of  any of the Collateral Documents and any of the
Liens  intended  to be created thereunder and (D) assure, convey, grant, assign,
transfer,  preserve,  protect  and  confirm  more  effectively  unto the Secured
Parties  the  rights  granted  or now or hereafter intended to be granted to the
Secured  Parties  under any Loan Document or under any other instrument executed
in  connection  with  any  Loan  Document  to  which  the  Company or any of its
Subsidiaries  is  or  is to be a party, and cause each of its Subsidiaries to do
so.
7.17     Preparation  of  Environmental Reports.  Upon the occurrence and during
         --------------------------------------
continuation  of  a  Default  or  an  Event of Default and at the request of the
Administrative  Agent  from  time to time, provide to the Lenders within 60 days
after  such  request,  at  the  expense  of  the  Company, an environmental site
assessment  report  for  any of its or its Subsidiaries' properties described in
the  Mortgages,  prepared  by an environmental consulting firm acceptable to the
Administrative  Agent, indicating the presence or absence of Hazardous Materials
and  the  estimated  cost  of  any  compliance,  removal  or  remedial action in
connection with any Hazardous Materials on such properties; without limiting the
generality  of the foregoing, if the Administrative Agent determines at any time
(upon the occurrence and continuance of a Default or an Event of Default) that a
material  risk  exists that any such report will not be provided within the time
referred  to  above,  the  Administrative  Agent  may  retain  an  environmental
consulting  firm  to  prepare such report at the expense of the Company, and the
Company  hereby grants and agrees to cause any Subsidiary that owns any property
described  in  the  Mortgages  to  grant  at  the  time  of  such request to the
Administrative  Agent,  the Lenders, such firm and any agents or representatives
thereof  an irrevocable non-exclusive license, subject to the rights of tenants,
to  enter  onto  their  respective  properties  to undertake such an assessment.
7.18     Perfection  of  Security  Interest under Security Agreement.  Within 30
         -----------------------------------------------------------
days  after  the  Sixth  Amendment  Effective  Date (or within such other longer
period  as  the  Administrative  Agent  may  deem  advisable), the Company shall
furnish  to  the  Administrative Agent and in sufficient copies for each Lender:
(a)     acknowledgment  copies  of proper financing statements, duly filed under
the  Uniform  Commercial Code of all jurisdictions that the Administrative Agent
may  deem  necessary or reasonably desirable in order to perfect and protect the
liens  and security interests created under the Security Agreement, covering the
Collateral  described  in  the  Security  Agreement,
(b)     completed  requests  for  information,  listing the financing statements
referred  to  in  clause  (a) above and all other effective financing statements
filed  in  the  jurisdictions  referred  to  in  clause  (a) above that name the
Guarantor  or  any  Subsidiary Guarantor as debtor, together with copies of such
other  financing  statements,  and
(c)     evidence  of  the  completion  of all other recordings and filings of or
with  respect  to  the Security Agreement that the Administrative Agent may deem
necessary  or  desirable  in  order  to  perfect  and  protect the Liens created
thereby.
7.19     Perfection  of the Mortgages.  Within 60 days after the Sixth Amendment
         ----------------------------
Effective  Date  (or within such other longer period as the Administrative Agent
may  deem  advisable), the Company shall furnish to the Administrative Agent and
in  sufficient  copies  for  each  Lender:
(a)     evidence  that  counterparts of the Mortgages have been duly recorded in
all filing or recording offices that the Administrative Agent may deem necessary
or  reasonably  desirable  in order to create a valid and subsisting Lien on the
property  described therein in favor of the Administrative Agent for the benefit
of  the  Secured  Parties  and that all filing and recording taxes and fees have
been  paid,
(b)     fully  paid  American  Land Title Association Lender's Extended Coverage
title  insurance  policies (the "Mortgage Policies") in form and substance, with
                                 -----------------
endorsements  and  in  amount reasonably acceptable to the Administrative Agent,
issued  by  title  insurers acceptable to the Administrative Agent, insuring the
Mortgages  to  be  valid and subsisting Liens on the property described therein,
free  and  clear  of  all defects (including, but not limited to, mechanics' and
materialmen's  Liens)  and  encumbrances,  excepting only encumbrances of record
which  do  not  materially  affect  the property and Permitted Encumbrances, and
providing  for  such  other  affirmative  insurance  (including endorsements for
future  advances  under  the Loan Documents and for mechanics' and materialmen's
Liens)  as  the  Administrative  Agent  may  deem  necessary  or  desirable,
(c)     acknowledgment  copies  of proper financing statements, duly filed under
the  Uniform  Commercial Code of all jurisdictions that the Administrative Agent
may  deem  necessary or reasonably desirable in order to perfect and protect the
liens  and  security  interests  in  all  fixtures attached to all real property
described  in  the  Mortgages,
(d)     such  consents  and  agreements  of lessors and other third parties, and
such  estoppel  letters and other confirmations, as the Administrative Agent may
deem  necessary  or  reasonably  desirable,
(e)     evidence  of  the  insurance  required  by  the  terms of the Mortgages,
(f)     evidence  that  all  other action that the Administrative Agent may deem
necessary  or reasonably desirable in order to create valid and subsisting Liens
on  the  property  described  in  the  Mortgages  has  been  taken,  and
(g)     favorable  opinions  of  local  counsels  with  respect  to  each of the
Mortgages,  in  form  and  substance  satisfactory  to the Administrative Agent.
1.13     Addition  to  Representations and Warranties.  Article VI of the Credit
         --------------------------------------------
Agreement  is  hereby  amended  by  adding  the  following  new  Sections:
6.28     Representations  and  Warranties Incorporated From the Sixth Amendment.
         ----------------------------------------------------------------------
Each  of  the  representations  and  warranties  given  by  Company  to  the
Administrative Agent and the Lenders in the Sixth Amendment are true and correct
in  all  material  respects as of the date of the Sixth Amendment, except to the
extent  such representations and warranties are expressly made as of a specified
date  in  which  event  such  representations  and  warranties shall be true and
correct as of such specified date, and all representations and warranties in the
Collateral  Documents  are  true  and correct in all material respects, and such
representations  and  warranties  are incorporated herein by this reference with
the  same  effect  as  though  set  forth  in  their  entirety  herein.
6.29     Perfection  of  Security  Interests.  All  filings  and  other  actions
         -----------------------------------
necessary  or  desirable  to  perfect  and  protect the security interest in the
Collateral  created under the Collateral Documents will be duly made or taken as
provided  for  herein  and  will be in full force and effect, and the Collateral
Documents  create  in  favor  of the Administrative Agent for the benefit of the
Secured  Parties  a  valid  and,  together  with such filings and other actions,
perfected  priority security interest in the Collateral, securing the payment of
the  Secured Obligations (in each case, as defined in each Collateral Document),
and  all filings and other actions necessary or desirable to perfect and protect
such  security  interest will be duly taken as provided herein.  The Company and
its  Subsidiaries are the legal and beneficial owners of the Collateral free and
clear  of  any  Lien,  except  for  the  liens and security interests created or
permitted  under  the  Loan  Documents.
1.14     Section  11.09.  Section  11.09  of  the Credit Agreement is amended by
         --------------
adding  to  the  end  thereof  the  following:
Upon  the  acceptance  of any appointment as Administrative Agent hereunder by a
successor Administrative Agent and upon the execution and filing or recording of
such  financing  statements,  or  amendments  thereto,  and  such  amendments or
supplements  to  the Mortgages, and such other instruments or notices, as may be
necessary  or  desirable,  or  as  the Majority Lenders may request, in order to
continue  the  perfection of the Liens granted or purported to be granted by the
Collateral  Documents,  such successor Administrative Agent shall succeed to and
become  vested with all the rights, powers, discretion, privileges and duties of
the  retiring  Administrative Agent, and the retiring Administrative Agent shall
be  discharged  from  its  duties  and  obligations  under  the  Loan Documents.
1.15     Additional  Provision.  Article  XII  of the Credit Agreement is hereby
         ---------------------
amended  by  adding  the  following  new  Section:
12.20     Release  of  Collateral.  (a)  Upon the sale, lease, transfer or other
          -----------------------
disposition  of  any  item  of  Collateral  of  the  Company  or  any Subsidiary
(including,  without limitation, as a result of the sale, in accordance with the
terms  of  the  Loan  Documents, of any Subsidiary that owns such Collateral) in
accordance  with,  and  to  the  extent  permitted  by,  the  terms  of the Loan
Documents,  the Administrative Agent will, at the Company's expense, execute and
deliver  to  the  Company  or  such Subsidiary such documents as such Person may
reasonably  request  to evidence the release of such item of Collateral from the
assignment  and  security  interest  granted  under  the Collateral Documents in
accordance  with  the  terms  of  the  Loan  Documents.
(b)     If  the ratio of Adjusted Consolidated Total Debt to Consolidated EBITDA
tested  at the end of each fiscal quarter for the preceding four fiscal quarters
does  not  exceed  3.50  to  1.00  at the end of two consecutive fiscal quarters
ending  at any time after the Sixth Amendment Effective Date, the Administrative
Agent will, upon the Company's request and at the Company's expense, execute and
deliver  to  the  Company  or  such  Subsidiary Guarantor such documents as such
Person  may  reasonably  request  to  evidence  the  permanent  release  of  the
Collateral  from the assignment and security interest granted under the Security
Agreement and the Mortgages (excluding the Pledge Agreements) in accordance with
the  terms  of  the  Loan  Documents.
     SECTION  2.     Conditions  of  Effectiveness
                     -----------------------------
This  Amendment  shall become effective as of the date first above written when,
and only when, the Administrative Agent shall have received counterparts of this
Amendment  executed by the Company and the Majority Lenders or, as to any of the
Lenders,  advice  satisfactory  to the Administrative Agent that such Lender has
executed  this  Amendment  and  the Administrative Agent shall have additionally
received  all  of  the following documents, each such document (unless otherwise
specified)  dated  the  date  of receipt thereof by the Administrative Agent, in
sufficient  copies for each Lender and in form and substance satisfactory to the
Administrative  Agent:
(a)     Certified  copies  of  the resolutions of the Board of Directors of
the  Company  and  each  Subsidiary  Guarantor  approving this Amendment and the
Collateral  Agreements  (as  hereinafter  defined)  to which it is or is to be a
party,  and  the  matters  contemplated  hereby  and  thereby.
(b)     A  certificate of the Secretary or an Assistant Secretary of the Company
and  each  Subsidiary  Guarantor certifying the names and true signatures of the
officers  of  the  Company and such Subsidiary Guarantor authorized to sign this
Amendment  and  the Collateral Agreements to which they are or are to be a party
and  the  other  documents  to  be  delivered  hereunder  and  thereunder.
(c)     A  security  agreement  in  substantially  the  form of Exhibit A hereto
(together  with  each other security agreement and security agreement supplement
delivered  pursuant  to  Section  7.15  of the Credit Agreement, in each case as
amended,  the  "Security  Agreement"),  duly  executed  by  the Company and each
                -------------------
Subsidiary  Guarantor,  together  with evidence of the insurance required by the
terms  of  the  Security  Agreement.
(d)     Deeds  of  trust,  trust  deeds,  mortgages,  leasehold  mortgages  and
leasehold  deeds  of  trust  in  substantially  the form of Exhibit B hereto and
covering  the  properties listed on Schedule II hereto (together with each other
mortgage  delivered  pursuant  to  Section 7.15 of the Credit Agreement, in each
case  as amended, the "Mortgages", and together with the Security Agreement, the
                       ---------
"Collateral  Agreements"),  duly  executed  by  the  Company  or the appropriate
 ----------------------
Subsidiary.
(e)     Evidence  of  insurance  naming  the  Administrative Agent as additional
insured with such responsible and reputable insurance companies or associations,
and  in such amounts and covering such risks, as is satisfactory to the Lenders.
(f)     A  favorable  opinion of Carmody & Torrance LLP, counsel for the Company
and each Subsidiary Guarantor, in substantially the form of Exhibit C hereto and
as  to  such  other  matters  as any Lender through the Administrative Agent may
reasonably  request.
(g)     A  certificate  signed  by a duly authorized officer of the Company
stating  that:
(i)     The representations and warranties contained in Section 3 and in each of
   the Collateral Agreements delivered pursuant to this Section 2 are correct on
   and as of the date of such certificate as though made on and as of such date
other than any such representations or warranties that, by their terms, refer to
               a date other than the date of such certificate; and
(ii)     No event has occurred and is continuing that constitutes a Default or
                              an Event of Default.
This  Amendment  is  subject  to  the  provisions of Section 12.01 of the Credit
Agreement.
     SECTION  3.     Representations  and  Warranties  of  the  Company
The  Company  represents and warrants to Administrative Agent and the Lenders as
follows:
3.1     Incorporation  of  Representation  and  Warranties  from Agreement.  The
        ------------------------------------------------------------------
representations  and  warranties  contained  in the Credit Agreement, as amended
hereby,  and  in  the  other Loan Documents are true and correct in all material
respects  at  and as of the Sixth Amendment Effective Date (except to the extent
specifically  made  with  regard  to  a  particular  date  in  which  case  such
representations  and  warranties  shall  be  true  and correct as of such date).
3.2     Absence  of Default or Event of Default.  Before and after giving effect
        ---------------------------------------
to  this Amendment, no Default or Event of Default exists, will exist or will be
continuing.
3.3     Corporate  Power and Authority.  The Company has the corporate power and
        ------------------------------
authority  to  execute,  deliver  and  perform  the terms and provisions of this
Amendment  and  has  taken  all  necessary  corporate  action  to  authorize the
execution,  delivery  and  performance  by  it  of  this  Amendment.
3.4     No  Additional Consents Required.  No authorization or approval or other
        --------------------------------
action  by,  and  no  notice  to  or  filing or registration with, any Person is
required  in  connection  with,  the  execution, delivery and performance hereof
other  than  those  obtained  and  in  full  force  and  effect.
3.5     Binding Obligation.  This Amendment has been duly executed and delivered
        ------------------
by  the  Company  and  is the legal, valid and binding obligation of the Company
enforceable  against  the  Company  in  accordance with its terms, except as the
enforcement  thereof  may be subject to the effect of any applicable bankruptcy,
insolvency,  reorganization,  moratorium  or  similar  laws affecting creditors'
rights  generally  and  general  principles  of  equity  (regardless  of whether
enforcement  is  sought  in  equity  or  at  law).
3.6     No  Violation  or  Conflict.  Neither  the  execution,  delivery  and
        ---------------------------
performance  of  this  Amendment  by  the  Company  nor  the consummation of the
transactions  contemplated  hereby  will  (i)  contravene  any  provision of any
Requirement  of Law applicable to the Company or (ii) conflict with or result in
a  breach  by  the  Company  of  any  Organizational  Document.
3.7     Good  Standing.  On the Sixth Amendment Effective Date, the Company is a
        --------------
duly  organized  and validity existing corporation in good standing in its state
of  incorporation.
3.8     No  Amendments to Bylaws.  A true and complete copy of the bylaws of the
        ------------------------
Company  has  been  delivered to Administrative Agent prior to or on the date of
this  Amendment.
     SECTION  4.     Reference  to  and  Effect  on  the  Credit  Agreement
                     ------------------------------------------------------
On  and  after  the  date hereof each reference in the Credit Agreement to "this
Agreement,"  "hereunder,"  "hereof," "herein," or words of like import, and each
reference  to the Credit Agreement in the Loan Documents and all other documents
(the  "Ancillary  Documents") delivered in connection with the Credit Agreement,
       --------------------
shall  mean  and  be  a  reference  to  the  Credit Agreement as amended hereby.
Except  as  specifically  amended above, the Credit Agreement and the other Loan
Documents  shall  remain  in  full  force and effect and are hereby ratified and
confirmed.
The execution, delivery and effectiveness of this Amendment shall not, except as
expressly  provided herein, operate as a waiver of any right, power or remedy of
the Lenders or Administrative Agent under the Credit Agreement or the other Loan
Documents.
SECTION  5.  Fees,  Costs  and Expenses.  On the Sixth Amendment Effective Date,
             --------------------------
(a)  the  Company  agrees  to pay a fee to the Administrative Agent on behalf of
each  Lender  (other than any Lender who has waived such fee) which has executed
and  delivered  this  Amendment on or prior to 12:00 noon, E.S.T. on November 9,
2001  (or  at  any  other time otherwise agreed by the Borrower) equal to 10 bps
times  the  Commitment of such Lender as in effect under the Credit Agreement on
the  Sixth  Amendment  Effective  Date;  (b)  the  Company  agrees to pay to the
Administrative  Agent  for  the  Administrative  Agent's  own account those fees
specified  in  that  certain  Fee  Letter dated as of November 9, 2001 among the
Company and the Administrative Agent; and (c) the Company also agrees to pay all
reasonable  costs  and expenses in connection with the negotiation, preparation,
printing, typing, reproduction, execution and delivery of this Amendment and all
other  documents  furnished pursuant hereto or in connection herewith, including
without limitation, the reasonable fees and out-of-pocket expenses of Shearman &
Sterling,  special  counsel to Administrative Agent, or the reasonable allocated
costs  of  staff  counsel  as  well  as  the  fees and out-of-pocket expenses of
counsel,  independent  public  accountants and other outside experts retained by
Administrative  Agent  in  connection with the administration of this Amendment.
SECTION  6.  Reaffirmation  of  Guaranties.  Each  Subsidiary  Guarantor  as  a
             -----------------------------
guarantor  of  the  Obligations under the Subsidiary Guaranty and the other Loan
Documents,  hereby  reaffirms  its  continuing  obligations  and  liabilities
thereunder,  and  agrees  that  such  Subsidiary  Guaranty  and  the  other Loan
Documents  shall  remain  in  full  force and effect and cover and extend to all
Obligations  under  the  Credit  Agreement  (as  amended  hereby).
SECTION  7.  Execution  in  Counterparts.  This  Amendment  may  be  executed in
             ---------------------------
counterparts, each of which when so executed and delivered shall be deemed to be
an  original  and  all  of which taken together shall constitute but one and the
same  instrument.  Delivery  of  an  executed counterpart of a signature page to
this  Amendment  by  facsimile  transmission shall be effective as delivery of a
manually  executed  counterpart  of  this  Amendment.
SECTION 8.  Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN
            -------------
ACCORDANCE  WITH  THE  INTERNAL  LAWS  OF  THE  STATE  OF  NEW  YORK.
                            [signature pages follow]

<PAGE>

IN  WITNESS  WHEREOF,  the  parties hereto have caused this Amendment to be duly
executed  and  delivered  by their proper and duly authorized officers as of the
day  and  year  first  above  written.
MacDERMID,  INCORPORATED

By:     John  Cordani
        -------------
Title:  Secretary

MacDERMID  TOWER,  INC.
MacDERMID  TARTAN,  INC.
MacDERMID  ACUMEN,  INC.
MacDERMID  EQUIPMENT,  INC.
MacDERMID  SOUTH  ATLANTIC,  INC.
MacDERMID  OVERSEAS  ASIA,
  LIMITED
MacDERMID  EUROPE,  INC.
MacDERMID  DELAWARE,  INC.
MacDERMID  INVESTMENTS
  CORPORATION
MacDERMID  SOUTH  AMERICA,  INC.
SPECIALTY  POLYMERS,  INC.
ECHO  INTERNATIONAL,  INC.
MCD  ACQUISITION  CORP.
W.  CANNING,  INC.
W.  CANNING  USA,  LLC
DYNACIRCUITS,  LLC
CANNING  GUM,  LLC
MacDERMID  GRAPHIC  ARTS,  INC.
MacDERMID-PTI,  INC.
SUPRATECH  SYSTEMS  INC.
NAPP  SYSTEMS  INC.

By:     John  Cordani
        -------------
Title:  Secretary

BANK  OF  AMERICA,  N.A.,
as  Administrative Agent and Individually as a Lender, the Swing Line Lender and
as  the  Issuing  Bank

By:     Wendy  J.  Gorman
        -----------------
Title:  Principal

MacDERMID  COLORSPAN  INCORPORATED
AXCYL  INCORPORATED

By:     John  Cordani
        -------------
Title:  Secretary

FLEET  NATIONAL  BANK,  as  Syndication  Agent  and  as  a  Lender

By:     Janet  G.  O'Donnell
        --------------------
Title:  Managing  Director

THE  BANK  OF  NEW  YORK,  as  Co-Agent  and  as  a  Lender

By:     Melinda  White
        --------------
Title:  VP

FIRST  UNION  NATIONAL  BANK,  as  Co-Agent  and  as  a  Lender

By:     Robert  Brown
        -------------
Title:  Vice  President

LLOYDS  TSB  BANK  PLC  as  Co-Agent  and  as  a  Lender

By:     Ian  Dimmock
        ------------
Title:  Vice  President  Acquisition  Finance

By:
Title:

THE  CHASE  MANHATTAN  BANK

By:     Stacey  Haimes
        --------------
Title:  VP

COMERICA  BANK

By:     John  M.  Costa
        ---------------
Title:  First  Vice  President

BANK  ONE,  N.A.  (f/k/a/  THE  FIRST  NATIONAL  BANK  OF  CHICAGO)

By:
Title:

ABN  AMRO  BANK  N.V.

Title:

By:     George  Dugan
        -------------
Title:  Vice  President

BANK  OF  MONTREAL

By:     Brian  Hunter
        -------------
Title:  Director

BANK     OF  TOYKO-MITSUBISHI  TRUST
COMPANY

By:     Pamela  Donnelly
        ----------------
Title:  Vice  President

DG  BANK  DEUTSCHE
GENOSSENSCHAFTSBANK  AG,  CAYMAN
ISLAND  BRANCH

By:     Ya-Roo  Yang
        ------------
Title:  Assistant  Vice  President

By:     Bernd  Henrik  Franke
        ---------------------
Title:  Vice  President

THE  ROYAL  BANK  OF  SCOTLAND  plc

By:
Title:

UNICREDITO  ITALIANO  S.p.A.,  New  York  Branch

By:
Title:

By:
Title:

HSBC  BANK  USA

By:     Alan  Vitulich
        --------------
Title:  Vice  President

FORTIS  (USA)  FINANCE  LLC

By:     E.  Matthews
        ------------
Title:

WACHOVIA  BANK,  N.A.

By:     Robert  Wilson
        --------------
Title:  Vice  President

CREDIT  SUISSE  FIRST  BOSTON

By:     James  P.  Moran
        ----------------
Title:  Director

<PAGE>
                                                                   SCHEDULE I TO
                                             SIXTH AMENDMENT TO CREDIT AGREEMENT
<TABLE>
<CAPTION>

MACDERMID INCORPORATED
WORLDWIDE LINES OF CREDIT
USD CONVERSIONS
<S>                        <C>                 <C>
FACILITY/OPERATION         BANK                AMOUNT- USD
-------------------------  ------------------  -----------
MacDermid Inc              Bank of America     215,000,000
Eurocir Group              Various              30,000,000
MacDermid Canning UK       Barclays             15,000,000
MacDermid US Operations    Fleet                 7,000,000
MacDermid Benelux          Fortis                5,000,000
MacDermid Taiwan           HSBC                  2,500,000
MacDermid Asia             Chase                 2,100,000
MacDermid Hong Kong        Chase                 2,100,000
MacDermid Hong Kong        HSBC                  2,000,000
MacDermid Singapore        HSBC                  1,800,000
MacDermid Japan            BTM                   2,000,000
MacDermid Japan            Dai-Ichi Kangyo         900,000
MacDermid Italiana         Banco San Paolo         850,000
MacDermid Sweden           Handelsbanken           625,000
MacDermid France           Banque Populaire        600,000
MacDermid Italiana         Banco Pop Dimilano      450,000
MacDermid Italiana         Banco Ambrovenelo       375,000
MacDermid Italiana         Banco Cariplo           328,000
MacDermid Canada           Commerce Bank           325,000
MacDermid Italiana         Banco Pop Veneta        280,000
MacDermid Italiana         Banc Sella Spa          250,000
MacDermid France           Soc Lyonnaise           200,000
MacDermid Australia        Chase                   200,000
MacDermid France           Banque Worms            200,000
MacDermid Germany          Spar Kasse               50,000

                                               -----------
                                               290,133,000
</TABLE><PAGE>
                                                                 Exhibit 4.3.1.2

                             PUBLIC SERVICE COMPANY
                                OF NEW HAMPSHIRE
                                       AND
                            FIRST UNION NATIONAL BANK

          Formerly Known as FIRST FIDELITY BANK, NATIONAL ASSOCIATION,
                                   NEW JERSEY

             Successor to BANK OF NEW ENGLAND, NATIONAL ASSOCIATION
             (Formerly Known as NEW ENGLAND MERCHANTS NATIONAL BANK)
                                     and to
             NEW BANK OF NEW ENGLAND, NATIONAL ASSOCIATION, TRUSTEE

                         TWELFTH SUPPLEMENTAL INDENTURE
                          Dated as of December 1, 2001

                           TO ISSUE SERIES I, J and K
                              FIRST MORTGAGE BONDS

              $89,250,000 First Mortgage Bonds (Series I due 2021)

              $89,250,000 First Mortgage Bonds (Series J due 2021)

           $108,985,000 5.45% First Mortgage Bonds (Series K due 2021)

                     THE SERIES I AND J FIRST MORTGAGE BONDS
                     CREATED BY THIS SUPPLEMENTAL INDENTURE
           CONTAIN PROVISIONS FOR CHANGES IN THE INTEREST RATE THEREON

                                     Page 1
<PAGE>
THIS TWELFTH SUPPLEMENTAL INDENTURE dated as of December 1, 2001, between PUBLIC
SERVICE COMPANY OF NEW HAMPSHIRE (hereinafter with its successors and assigns
generally called the Company), a corporation duly organized and existing under
the laws of the State of New Hampshire, having its principal place of business
at 1000 Elm Street in Manchester, New Hampshire 03101, and FIRST UNION NATIONAL
BANK, formerly known as First Fidelity Bank, National Association, New Jersey,
successor in trust to Bank of New England, National Association (formerly known
as New England Merchants National Bank) and to New Bank of New England, National
Association (hereinafter with its successors in trust generally called the
Trustee), a national banking association duly organized and existing under the
laws of the United States of America, having its corporate trust office at 21
South Street, 3rd Floor, Morristown, New Jersey 07960, and duly authorized to
execute the trusts hereof.

WHEREAS, the Company heretofore duly executed and delivered to Bank of New
England, National Association (formerly known as New England Merchants National
Bank), as predecessor trustee, its General and Refunding Mortgage Indenture
(hereinafter, as amended by the Tenth Supplemental Indenture dated as of May 1,
1991, generally referred to as the "Original Indenture" and sometimes referred
to, with each and every prior indenture supplemental thereto and each and every
other instrument, including this Twelfth Supplemental Indenture, which the
Company, pursuant to the provisions thereof, may execute with the Trustee and
which is therein stated to be supplemental to the Original Indenture, as the
"Indenture"), dated as of August 15, 1978, but actually executed on September
20, 1978, and recorded, among other places, in Hillsborough County, New
Hampshire, Registry of Deeds, Book 2640, Page 334, in York County, Maine,
Registry of Deeds, Book 2417, Page 01, in Concord, Vermont, Land Records, Book
44, Page 129A, and in the Office of the Secretary of the State of Connecticut in
Volume 56, Page G of Railroad Mortgages (together with certificates with respect
thereto recorded in the Town Clerk's offices of Waterford and Berlin,
Connecticut), to which this instrument is supplemental, and in modification and
confirmation thereof has executed and delivered (i) to Bank of New England,
National Association (formerly known as New England Merchants National Bank) as
predecessor trustee nine duly recorded indentures supplemental thereto, (ii) to
First Fidelity Bank, National Association, New Jersey, as trustee, a Tenth
Supplemental Indenture dated as of May 1, 1991 (hereinafter generally referred
to as the Tenth Supplemental Indenture) and (iii) to First Union National Bank,
as trustee, an Eleventh Supplemental Indenture dated as of April 1, 1998
(hereinafter generally referred to as the Eleventh Supplemental Indenture)
thereto duly recorded, whereby substantially all the properties of the Company
used by it in its business, whether then owned or thereafter acquired, with
certain reservations, exceptions and exclusions fully set forth in the Original
Indenture were given, granted, bargained, sold, transferred, assigned, pledged,
mortgaged and conveyed to the Trustee, its successors and assigns, in trust upon
the terms and conditions set forth therein to secure its General and Refunding
Mortgage Bonds issued and to be issued thereunder, and for other purposes more
particularly specified therein; and

WHEREAS, on January 6, 1991, Bank of New England, National Association was
declared insolvent, and New Bank of New England, National Association, pursuant
to a purchase and assumption agreement dated as of January 6, 1991 between it
and the Federal Deposit Insurance Corporation as receiver of Bank of New
England, National Association, acquired and succeeded to all of the right,
title, interest, authority and appointment of Bank of New England, National
Association, as Trustee under the Indenture, which succession and appointment
were ratified and confirmed by the Board of Directors of the Company on February
21, 1991, all as more particularly recited in the Agreement as to Resignation of
Trustee and Appointment of Successor Trustee (the "Resignation and Appointment
Agreement"), by and among the Company, New Bank

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<PAGE>
of New England, National Association, and First Fidelity Bank, National
Association, New Jersey, recorded with the Tenth Supplemental Indenture; and

WHEREAS, pursuant to the Resignation and Appointment Agreement, New Bank of New
England, National Association resigned as successor trustee and First Fidelity
Bank, National Association, New Jersey succeeded to the trusts created by the
Indenture; and

WHEREAS, First Fidelity Bank, National Association, New Jersey changed its name
to First Union National Bank and remains as Trustee under the Indenture; and

WHEREAS, pursuant to The Third Amended Joint Plan of Reorganization (the
"Plan"), dated December 28, 1989 (Case No. 88- 00043), as confirmed by order of
the United States Bankruptcy Court for the District of New Hampshire dated April
20, 1990, all bonds outstanding under the First Mortgage Indenture dated as of
January 1, 1943, as from time to time amended and supplemented, between the
Company and Old Colony Trust Company, as trustee (to which each of The First
National Bank of Boston and Maryland National Bank has been successor trustee)
have been paid in full and said First Mortgage Indenture has been released and
is of no further force or effect, all bonds outstanding under the Third Mortgage
Indenture dated as of February 15, 1986, as from time to time amended and
supplemented, between the Company and First Fidelity Bank, National Association,
New Jersey, as trustee, have been paid in full and said Third Mortgage Indenture
has been released and is of no further force or effect, and all bonds issued
prior to the date of execution of the Tenth Supplemental Indenture and
outstanding under the Indenture have been paid in full; and

WHEREAS, the actions contemplated by the Resignation and Appointment Agreement
and the Tenth Supplemental Indenture have been authorized and directed by Order
of the United States Bankruptcy Court for the District of New Hampshire dated
January 18, 1991 in Case No. 88-00043, which Order authorized certain
transactions and procedures necessary to consummate the Plan and approved
certain modifications of the Plan related thereto; and

WHEREAS, all applicable requirements of the Plan and said Order have been
complied with; and

WHEREAS, pursuant to the Tenth Supplemental Indenture the Company effected the
amendments to the Indenture specified in the Tenth Supplemental Indenture,
including amendments to reflect the release and discharge of the Company's First
Mortgage Indenture dated as of January 1, 1943, as supplemented and amended, and
to reflect that, as a result, the Indenture is now a First Mortgage Indenture,
the bonds issued and to be issued under the Indenture will be First Mortgage
Bonds of the Company, and the Original Indenture as it may heretofore and
hereafter be supplemented and amended shall henceforth be known and referred to
as the

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Company's First Mortgage Indenture dated as of August 15, 1978; and

WHEREAS, the Company by appropriate and sufficient corporate action in
conformity with the terms of the Indenture duly caused to be issued seven new
series of bonds under the Indenture designated First Mortgage Bonds, Series A
through G, said Series A through Series G Bonds being in an aggregate principal
amount of $858,985,000 and consisting of fully registered bonds containing the
terms and provisions duly fixed and determined by the Board of Directors of the
Company and expressed in Schedule B to the Tenth Supplemental Indenture; and

WHEREAS, on May 15, 1996, $172,500,000 aggregate principal amount of the
Company's 8 7/8% First Mortgage Bonds, Series A, matured and were paid and
canceled; and

WHEREAS, as of April 1, 1998 the Company by appropriate and sufficient corporate
action in conformity with the terms of the Indenture duly caused to be issued a
new series of bonds under the Indenture designated First Mortgage Bonds, Series
H, said Series H Bonds being in an aggregate principal amount of $75,000,000 and
containing the terms and provisions duly fixed and determined by the Board of
Directors of the Company and expressed in Schedule A to the Eleventh
Supplemental Indenture; and

WHEREAS, on May 15, 1998, $170,000,000 aggregate principal amount of the
Company's 9.17% First Mortgage Bonds, Series B, matured and were paid and
canceled; and

WHEREAS, on April 22, 1999, the Revolving Credit Agreement dated as of April 23,
1998 (the "Credit Agreement") terminated, the Credit Borrowings thereunder were
indefeasibly paid in full in accordance with the terms thereof and the
obligations of the several Lenders to make Advances to the Company under the
Credit Agreement were terminated; the bonds of Series H were deemed paid and all
obligations of the Company to pay the principal of, premium, if any, and
interest on the bonds of Series H was satisfied and discharged; and the
$75,000,000 aggregate principal amount of the Company's First Mortgage Bonds,
Series H, were canceled; and

WHEREAS, as of March 30, 2001 the Company sold its interest in the Millstone II
Nuclear Generating Station, located in Waterford, Connecticut, and with the sale
of said property, no longer owns any property located in Connecticut which is
subject to the lien of the Indenture, and is no longer subject to the
jurisdiction of the Connecticut Department of Public Utility Control; and

WHEREAS, the Company has purchased, constructed or otherwise acquired certain
additional property not heretofore specifically described in the Indenture but
which is and is intended to be

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<PAGE>
subject to the lien thereof, and proposes specifically to subject such
additional property to the lien of the Indenture at this time; and

WHEREAS, pursuant to a Series A Loan and Trust Agreement dated as of October 1,
2001 (herein called the "Series A PCRB Agreement"), by and among the Business
Finance Authority of the State of New Hampshire (herein called the "Authority"),
the Company and State Street Bank and Trust Company, as trustee (herein called
the "Series A PCRB Trustee"), the Authority is, concurrently herewith, issuing
$89,250,000 in principal amount of its Pollution Control Revenue Bonds (Public
Service Company of New Hampshire Project - 2001 Tax-Exempt Series A) (herein
called the "Series A PCR Bonds") and loaning the proceeds from the sale of the
Series A PCR Bonds to the Company. Proceeds of the loan will be used to refund
(i) the Authority's $66,000,000 aggregate principal amount 7.65% Pollution
Control Revenue Bonds (Public Service Company of New Hampshire Project - 1991
Tax-Exempt Series A) (the "1991 Series A Bonds"), and (ii) a portion of the
Authority's $112,500,000 aggregate principal amount 7.65% Pollution Control
Revenue Bonds (Public Service Company of New Hampshire Project - 1991 Tax-Exempt
Series C) (the "1991 Series C Bonds"). The proceeds of the 1991 Series A Bonds
and the 1991 Series C Bonds were used to finance and refinance a portion of the
Company's share of expenditures, including financing costs, relating to the
construction of certain pollution control, sewage and/or solid waste disposal
facilities required for the operation of the Seabrook nuclear-fueled, steam
electric generating plant, Unit 1, located in Seabrook, New Hampshire, in which
the Company owned an undivided 35.6% interest; and

WHEREAS, the Series A PCR Bonds are special obligations of the Authority,
payable solely out of the revenues and other receipts, funds and moneys derived
by the Authority under the Series A PCRB Agreement and from any amounts
otherwise available under the Series A PCRB Agreement for the payment of the
Series A PCR Bonds, and such revenues and other receipts, funds, moneys and
amounts are, pursuant to the Series A PCRB Agreement, assigned and pledged by
the Authority to the Series A PCRB Trustee as security for the Series A PCR
Bonds and include loan payments required to be made by the Company to the Series
A PCRB Trustee for the account of the Authority pursuant to the Series A PCRB
Agreement in amounts equal to the amounts payable with respect to the Series A
PCR Bonds; and

WHEREAS, in consideration of the loan being provided by the Authority under, and
pursuant to the provisions of, the Series A PCRB Agreement, the Company has
agreed to issue $89,250,000 principal amount of its First Mortgage Bonds, Series
I (hereinafter generally referred to as the "Series I Bonds" or the "bonds of
Series I") to evidence and secure the Company's obligation under the Series A
PCRB Agreement to make loan payments as aforesaid and to provide security for
the Series A PCR Bonds; and

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<PAGE>
WHEREAS, pursuant to a Series B Loan and Trust Agreement dated as of October 1,
2001 (herein called the "Series B PCRB Agreement"), by and among the Authority,
the Company and State Street Bank and Trust Company, as trustee (herein called
the "Series B PCRB Trustee"), the Authority is, concurrently herewith, issuing
$89,250,000 in principal amount of its Pollution Control Revenue Bonds (Public
Service Company of New Hampshire Project - 2001 Tax-Exempt Series B) (herein
called the "Series B PCR Bonds") and loaning the proceeds from the sale of the
Series B PCR Bonds to the Company. Proceeds of the loan will be used to refund a
portion of the 1991 Series C Bonds. The proceeds of the 1991 Series C Bonds were
used to finance and refinance a portion of the Company's share of expenditures,
including financing costs, relating to the construction of certain pollution
control, sewage and/or solid waste disposal facilities required for the
operation of the Seabrook nuclear-fueled, steam electric generating plant,
located in Seabrook, New Hampshire, in which the Company owned an undivided
35.6% interest; and

WHEREAS, the Series B PCR Bonds are special obligations of the Authority,
payable solely out of the revenues and other receipts, funds and moneys derived
by the Authority under the Series B PCRB Agreement and from any amounts
otherwise available under the Series B PCRB Agreement for the payment of the
Series B PCR Bonds, and such revenues and other receipts, funds, moneys and
amounts are, pursuant to the Series B PCRB Agreement, assigned and pledged by
the Authority to the Series B PCRB Trustee as security for the Series B PCR
Bonds and include loan payments required to be made by the Company to the Series
B PCRB Trustee for the account of the Authority pursuant to the Series B PCRB
Agreement in amounts equal to the amounts payable with respect to the Series B
PCR Bonds; and

WHEREAS, in consideration of the loan being provided by the Authority under, and
pursuant to the provisions of, the Series B PCRB Agreement, the Company has
agreed to issue $89,250,000 principal amount of its First Mortgage Bonds, Series
J (hereinafter generally referred to as the "Series J Bonds" or the "bonds of
Series J") to evidence and secure the Company's obligation under the Series B
PCRB Agreement to make loan payments as aforesaid and to provide security for
the Series B PCR Bonds; and

WHEREAS, pursuant to a Series C Loan and Trust Agreement dated as of October 1,
2001 (herein called the "Series C PCRB Agreement"), by and among the Authority,
the Company and State Street Bank and Trust Company, as trustee (herein called
the "Series C PCRB Trustee"), the Authority is, concurrently herewith, issuing
$108,985,000 in principal amount of its Pollution Control Revenue Bonds (Public
Service Company of New Hampshire Project - 2001 Tax-Exempt Series C) (herein
called the "Series C PCR Bonds") and loaning the proceeds from the sale of the
Series C PCR Bonds to the Company. Proceeds of the loan will be used to refund
the

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<PAGE>
Authority's $108,985,000 aggregate principal amount 7.50% Pollution Control
Revenue Bonds (Public Service Company of New Hampshire Project - 1991 Tax-Exempt
Series B) (the "1991 Series B Bonds"). The proceeds of the 1991 Series B Bonds
were used to finance and refinance a portion of the Company's share of
expenditures, including financing costs, relating to the construction of certain
pollution control, sewage and/or solid waste disposal facilities required for
operation of the Seabrook nuclear-fueled, steam electric generating plant,
located in Seabrook, New Hampshire, in which the Company owned an undivided
35.6% interest; and

WHEREAS, the Series C PCR Bonds are special obligations of the Authority,
payable solely out of the revenues and other receipts, funds and moneys derived
by the Authority under the Series C PCRB Agreement and from any amounts
otherwise available under the Series C PCRB Agreement for the payment of the
Series C PCR Bonds, and such revenues and other receipts, funds, moneys and
amounts are, pursuant to the Series C PCRB Agreement, assigned and pledged by
the Authority to the Series C PCRB Trustee as security for the Series C PCR
Bonds and include loan payments required to be made by the Company to the Series
C PCRB Trustee for the account of the Authority pursuant to the Series C PCRB
Agreement in amounts equal to the amounts payable with respect to the Series C
PCR Bonds; and

WHEREAS, in consideration of the loan being provided by the Authority under, and
pursuant to the provisions of, the Series C PCRB Agreement, the Company has
agreed to issue $108,985,000 principal amount of its First Mortgage Bonds,
Series K (hereinafter generally referred to as the "Series K Bonds" or the
"bonds of Series K") to evidence and secure the Company's obligation under the
Series C PCRB Agreement to make loan payments as aforesaid and to provide
security for the Series C PCR Bonds; and

WHEREAS, the execution and delivery of this Twelfth Supplemental Indenture and
the issue of not exceeding Eighty Nine Million Two Hundred Fifty Thousand
Dollars ($89,250,000) in aggregate principal amount of bonds of Series I, Eighty
Nine Million Two Hundred Fifty Thousand Dollars ($89,250,000) in aggregate
principal amount of bonds of Series J and One Hundred Eight Million Nine Hundred
Eighty Five Thousand Dollars ($108,985,000) in aggregate principal amount of
bonds of Series K, and other necessary actions have been duly authorized by the
Executive Committee of the Board of Directors of the Company;

WHEREAS, the Company proposes to execute and deliver this Twelfth Supplemental
Indenture to provide for the issue of the bonds of Series I, J and K and to
confirm the lien of the Indenture on the property referred to below, all as
permitted by Section 15.1 of the Original Indenture; and

WHEREAS, all acts and things necessary to make the initial issue

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<PAGE>
of the Series I, J and K Bonds, when executed by the Company and authenticated
by the Trustee and delivered as in the Original Indenture provided, the legal,
valid and binding obligations of the Company according to their terms and to
make this Twelfth Supplemental Indenture a legal, valid and binding instrument
for the security of the bonds, in accordance with its and their terms, have been
done and performed, and the execution and delivery of this Twelfth Supplemental
Indenture has in all respects been duly authorized;

NOW, THEREFORE, in consideration of the premises, and of the acceptance of said
Series I, J and K First Mortgage Bonds by the holder thereof, and of the sum of
$1.00 duly paid by the Trustee to the Company, and of other good and valuable
considerations, the receipt whereof is hereby acknowledged, and in confirmation
of and supplementing the Original Indenture as previously supplemented by said
eleven preceding supplemental indentures, and in performance of and compliance
with the provisions thereof, said Public Service Company of New Hampshire, by
these presents, does give, grant, bargain, sell, transfer, assign, pledge,
mortgage and convey unto First Union National Bank, as Trustee, as provided in
the Original Indenture, as previously supplemented and amended and as
supplemented by this Twelfth Supplemental Indenture, and its successor or
successors in the trust thereby and hereby created, and its and their assigns,
(a) all and singular the property, and rights and interests in property,
described in the Original Indenture and the eleven preceding supplemental
indentures (said first nine supplemental indentures, as amended by the Tenth
Supplemental Indenture, together with the Tenth Supplemental Indenture and the
Eleventh Supplemental Indenture, hereinafter referred to as the Preceding
Supplemental Indentures), and thereby conveyed, pledged, assigned, transferred
and mortgaged, or intended so to be (said descriptions in said Original
Indenture and the Preceding Supplemental Indentures being hereby made a part
hereof to the same extent as if set forth herein at length), whether then or now
owned or thereafter or hereafter acquired, except such of said properties or
interests therein as may have been released or sold or disposed of in whole or
in part as permitted by the provisions of the Original Indenture, and (b) also,
but without in any way limiting the generality of the foregoing, all the right,
title and interest of the Company, now owned or hereafter acquired, in and to
the rights, titles, interests and properties described or referred to in
Schedule D hereto attached and hereby made a part hereof as fully as if set
forth herein at length, in all cases not specifically reserved, excepted and
excluded; the foregoing property, and rights and interests in property, being
located in the following listed municipalities in New Hampshire and
unincorporated areas in Coos County, New Hampshire, as well as in various
municipalities in the States of Maine, Vermont and elsewhere:

BELKNAP COUNTY - Alton, Barnstead, Belmont, Center Harbor, Gilford, Gilmanton,
Laconia, Meredith, New Hampton, Sanbornton,

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<PAGE>
Tilton;

CARROLL COUNTY - Albany, Brookfield, Chatham, Conway, Eaton, Effingham, Freedom,
Madison, Moultonboro, Ossipee, Sandwich, Tamworth, Tuftonboro, Wakefield,
Wolfeboro;

CHESHIRE COUNTY - Alstead, Chesterfield, Dublin, Fitzwilliam, Gilsum,
Harrisville, Hinsdale, Jaffrey, Keene, Marlborough, Marlow, Nelson, Richmond,
Rindge, Roxbury, Stoddard, Sullivan, Surry, Swanzey, Troy, Westmoreland,
Winchester;

COOS COUNTY - Bean's Grant, Berlin, Cambridge, Carroll, Chandler's Purchase,
Clarksville, Colebrook, Columbia, Crawford's Purchase, Dalton, Dummer, Errol,
Gorham, Green's Grant, Jefferson, Lancaster, Martin's Location, Milan,
Millsfield, Northumberland, Pinkham's Grant, Pittsburg, Randolph, Shelburne,
Stark, Stewartstown, Stratford, Success, Thompson & Meserve's Purchase,
Wentworth's Location, Whitefield;

GRAFTON COUNTY - Alexandria, Ashland, Bath, Bethlehem, Bridgewater, Bristol,
Campton, Easton, Enfield, Franconia, Grafton, Hebron, Holderness, Landaff,
Lincoln, Lisbon, Littleton, Lyman, Orange, Plymouth, Rumney, Sugar Hill,
Thornton, Woodstock;

HILLSBOROUGH COUNTY - Amherst, Antrim, Bedford, Bennington, Brookline, Deering,
Francestown, Goffstown, Greenfield, Greenville, Hancock, Hillsborough, Hollis,
Hudson, Litchfield, Lyndeborough, Manchester, Mason, Merrimack, Milford, Mont
Vernon, Nashua, New Boston, New Ipswich, Pelham, Peterborough, Sharon, Temple,
Weare, Wilton, Windsor;

MERRIMACK COUNTY - Allenstown, Andover, Boscawen, Bow, Bradford, Canterbury,
Chichester, Concord, Danbury, Dunbarton, Epsom, Franklin, Henniker, Hill,
Hooksett, Hopkinton, Loudon, Newbury, New London, Northfield, Pembroke,
Pittsfield, Salisbury, Sutton, Warner, Webster, Wilmot;

ROCKINGHAM COUNTY - Auburn, Atkinson, Brentwood, Candia, Chester, Danville,
Deerfield, Derry, East Kingston, Epping, Exeter, Fremont, Greenland, Hampstead,
Hampton, Hampton Falls, Kensington, Kingston, Londonderry, New Castle,
Newfields, Newington, Newmarket, Newton, North Hampton, Northwood, Nottingham,
Portsmouth, Raymond, Rye, Sandown, Seabrook, South Hampton, Stratham, Windham;

STRAFFORD COUNTY - Barrington, Dover, Durham, Farmington, Lee, Madbury,
Middleton, Milton, New Durham, Rochester, Rollinsford, Somersworth, Strafford;

SULLIVAN COUNTY - Claremont, Croydon, Goshen, Grantham, Lempster, Newport,
Springfield, Sunapee, Unity, Washington;

SUBJECT, HOWEVER, as to all of the foregoing, to the specific rights,
privileges, liens, encumbrances, restrictions,

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<PAGE>
conditions, limitations, covenants, interests, reservations, exceptions and
otherwise as provided in the Original Indenture and the Preceding Supplemental
Indentures, and in the descriptions in the schedules thereto and hereto and in
the deeds or grants in said schedules referred to;

BUT SPECIFICALLY RESERVING, EXCEPTING AND EXCLUDING (as the same are reserved,
excepted and excluded from the lien of the Original Indenture and the Preceding
Supplemental Indentures) from this instrument and the grant, conveyance,
mortgage, transfer and assignment herein contained, all right, title and
interest of the Company, now owned or hereafter acquired, in and to the
properties and rights specified in subclauses (a) to (m), both inclusive, of the
paragraph beginning "BUT SPECIFICALLY RESERVING, EXCEPTING AND EXCLUDING..."
which paragraph is part of the granting clauses of the Original Indenture;

TO HAVE AND TO HOLD all said plant, premises, property, franchises and rights
hereby conveyed, assigned, pledged or mortgaged, or intended so to be, unto the
Trustee, its successor or successors in trust, and to its and their assigns
forever;

BUT IN TRUST, NEVERTHELESS, with power of sale, for the equal pro rata benefit,
security and protection of the owners of the bonds without any preference,
priority or distinction whatever of any one bond over any other bond by reason
of priority in the issue, sale or negotiation thereof, or otherwise;

PROVIDED, HOWEVER, and these presents are upon the condition, that if the
Company shall pay or cause to be paid or make appropriate provision for the
payment unto the holders of the bonds of the principal, premium, if any, and
interest to become due thereon at the times and in the manner stipulated
therein, and shall keep, perform and observe all and singular the covenants,
agreements and provisions in the Indenture expressed to be kept, performed and
observed by or on the part of the Company, then the Indenture and the estate and
rights thereby and hereby granted shall, pursuant and subject to the provisions
of Article 16 of the Original Indenture, cease, determine and be void, but
otherwise shall be and remain in full force and effect.

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

                                    ARTICLE 1
                                 SERIES I BONDS

      SECTION 1.01. Designation; Amount. The bonds of Series I shall be
designated "First Mortgage Bonds, Series I" and shall not exceed Eighty Nine
Million Two Hundred Fifty Thousand Dollars ($89,250,000) in aggregate principal
amount at any one time outstanding. The Trustee shall authenticate and deliver
up to

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<PAGE>
$89,250,000 aggregate principal amount of Series I Bonds at any time upon
application by the Company and compliance with the applicable provisions of the
Original Indenture.

      SECTION 1.02. Form of Bonds of 2001 Series I. The bonds of Series I shall
be issued only in fully registered form without coupons in denominations of
$25,000 and multiples thereof. The Bonds of Series I and the certificate of the
Trustee upon said bonds shall be substantially in the forms thereof respectively
set forth in Schedule A appended hereto.

      SECTION 1.03. Provisions of Bonds of 2001 Series I; Interest Accrual;
Effect of Payment on Series A PCR Bonds. The bonds of Series I shall mature on
May 1, 2021, and shall bear interest, payable on the interest payment dates
applicable from time to time to the Series A PCR Bonds (each such interest
payment date so applicable to the Series A PCR Bonds being an interest payment
date applicable to the bonds of Series I), until the Company's obligation in
respect of the principal thereof shall be discharged, in amounts equal to the
interest payments due on the Series A PCR Bonds on the interest payment dates
applicable to the bonds of Series I, and shall be payable both as to principal
and interest at the corporate trust office of the Trustee at 21 South Street,
3rd Floor, Morristown, New Jersey, or the corporate trust office of its
successors, in any coin or currency of the United States of America which at the
time of payment is legal tender for the payment of public and private debts. The
interest on the Series I Bonds, whether in temporary or definitive form, shall
be payable without presentation of such bonds, and only to or upon the written
order of the registered holders thereof of record at the applicable record date.
If pursuant to the Series A PCRB Agreement, all or any portion of the principal
of the Series A PCR Bonds shall become or be declared immediately due and
payable, a like principal amount of the Series I Bonds, together with all
accrued interest thereon, shall, without notice or demand of any kind, become
immediately due and payable. In addition, the Series I Bonds shall be callable
for redemption in whole or in part according to the terms and provisions
provided herein in Section 1.05.

      Anything in the Indenture or any Series I Bond to the contrary
notwithstanding, the Series I Bonds shall be deemed paid, and all obligations of
the Company to pay at the times provided herein the principal of and premium, if
any, and interest on the Series I Bonds, or to deposit with the Trustee at the
times provided in the Indenture an amount of money sufficient therefor, shall be
satisfied and discharged, when and to the extent that the principal of and
premium, if any, and interest on the Series A PCR Bonds shall have been paid or
deemed paid as provided in the Series A PCRB Agreement. The Series A PCRB
Trustee shall promptly notify the Trustee by telephone, confirmed in

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writing, of any default in the payment of principal of and premium, if any, and
interest on the Series A PCR Bonds, and shall promptly notify the Trustee by
telephone, confirmed in writing, of any payment of principal of and premium, if
any, and interest (other than payment of regularly scheduled interest) on the
Series A PCR Bonds, or if the Series A PCR Bonds have been paid or deemed paid,
defeased, redeemed, retired, surrendered or canceled. The Trustee shall be
entitled to rely on any such notification received from the Series A PCRB
Trustee.

      Each Series I Bond shall be dated the date of authentication thereof by
the Trustee, and shall bear interest on the principal amount thereof from the
interest payment date next preceding the date thereof to which interest has been
paid on the Bonds of said series, or if the date thereof is prior to the record
date (as hereinafter defined) with respect to the first interest payment date
then from the date of original issue of the Series I Bonds, or if the date
thereof be an interest payment date to which interest is being paid or a date
between the record date for any such interest payment date and such interest
payment date, then from such interest payment date.

      The person in whose name any bond of Series I is registered at the close
of business on any record date (as hereinafter defined) with respect to any
interest payment date shall be entitled to receive the interest payable on such
interest payment date notwithstanding the cancellation of such bond upon any
registration of transfer or exchange thereof subsequent to the record date and
prior to such interest payment date, except that if and to the extent the
Company shall default in the payment of the interest due on such interest
payment date, then such defaulted interest shall be paid to the person in whose
name such bond is registered on a subsequent record date for the payment of
defaulted interest if one shall have been established as hereinafter provided
and otherwise on the date of payment of such defaulted interest. A subsequent
record date may be established by the Company by notice mailed to the owners of
the bonds of Series I not less than ten (10) days preceding such record date,
which record date shall not be more than thirty (30) days prior to the
subsequent interest payment date. The term "record date" as used in this Section
with respect to any regular interest payment date shall mean the day next
preceding such interest payment date, or, if such day shall be a legal holiday
or a day on which banking institutions in Morristown, New Jersey are authorized
by law to close, the next preceding day which shall not be a legal holiday or a
day on which such institutions are so authorized to close.

      SECTION 1.04. Transfer and Exchange of Bonds of Series I; Series A PCRB
Trustee as Registered Holder; Restriction on Transfer of Bonds of Series I. The
bonds of Series I may be surrendered for registration or transfer as provided in
Section 2.8 of the Original Indenture, but subject to the restriction set forth
in the immediately succeeding paragraph, at the corporate trust office of the
Trustee at 21 South Street, 3rd Floor, Morristown, NJ or the corporate trust
office of its successors, and may be surrendered at said office for exchange for
a like

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<PAGE>
aggregate principal amount of bonds of Series I of other authorized
denominations and upon surrender for exchange of one or more bonds of Series I,
the Company shall execute and the Trustee shall authenticate and there shall be
delivered in exchange therefor a like aggregate principal amount of bonds of
Series I of other authorized denominations. Notwithstanding the provisions of
Section 2.7 of the Original Indenture, no charge, except for taxes or other
governmental charges, shall be made by the Company for any registration or
transfer of bonds of Series I or for the exchange of any bonds of Series I for
such bonds of other authorized denominations.

      The bonds of Series I shall be issued to and registered in the name of the
Series A PCRB Trustee and, anything in this Twelfth Supplemental Indenture or
any Series I Bond to the contrary notwithstanding, the bonds of Series I shall
not be sold, assigned, pledged or transferred, except to effect the transfer to
any successor trustee under the Series A PCRB Agreement.

      SECTION 1.05. Redemption of the Series I Bonds. If the Series A PCR Bonds
are to be redeemed as a whole or in part on any date as provided in the Series A
PCRB Agreement, a like principal amount of the Series I Bonds shall be redeemed
on such date, at a redemption price equal to the redemption price at which the
Series A PCR Bonds are to be so redeemed, as set forth in the Series A PCRB
Agreement, stated as a percentage of principal amount of the Series I Bonds to
be so redeemed, together in every case with accrued and unpaid interest thereon
to the date fixed for redemption. The Series I Bonds shall be redeemed as
aforesaid in accordance with the provisions hereof and upon not more than
forty-five (45) nor less than thirty (30) days' prior notice given by mail as
provided in Article 6 of the Original Indenture; provided that the Company shall
be deemed to have satisfied such notice requirement if it shall have delivered
to the Series A PCRB Trustee, or received from the Series A PCRB Trustee, as
appropriate, at the time and in the manner specified in the Series A PCRB
Agreement, the notice required pursuant to the Series A PCRB Agreement to be
delivered in connection with the redemption of the Series A PCR Bonds. The
Company shall deliver a copy of such notice to the Trustee at the time of such
delivery to or receipt from the Series A PCRB Trustee.

      Redemption of Series I Bonds pursuant to the foregoing provisions of this
Section 1.05 may be made with moneys deposited with or received by the Trustee
pursuant to Section 6.4 of the Original Indenture, or otherwise pursuant to the
Indenture.

      Except as provided in this Section 1.05, the Series I Bonds are not
subject to redemption under any provisions of the Indenture.

      SECTION 1.06. Payment Date Not a Business Day. If any redemption or
maturity date for principal, premium or interest

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<PAGE>
with respect to the Series I Bonds shall be (i) a Sunday or a legal holiday, or
(ii) a day on which banking institutions are authorized pursuant to law to close
and on which the corporate trust office of the Trustee in Morristown, New Jersey
or the Series A PCRB Trustee is not open for business, then the payment thereof
may be made on the next succeeding day not a day specified in (i) or (ii) with
the same force and effect as if made on the specified payment date and no
interest shall accrue for the period after the specified payment date.

                                    ARTICLE 2
                                 SERIES J BONDS

      SECTION 2.01. Designation; Amount. The bonds of Series J shall be
designated "First Mortgage Bonds, Series J" and shall not exceed Eighty Nine
Million Two Hundred Fifty Thousand Dollars ($89,250,000) in aggregate principal
amount at any one time outstanding. The Trustee shall authenticate and deliver
up to $89,250,000 aggregate principal amount of Series J Bonds at any time upon
application by the Company and compliance with the applicable provisions of the
Original Indenture.

      SECTION 2.02. Form of Bonds of 2001 Series J. The bonds of Series J shall
be issued only in fully registered form without coupons in denominations of
$25,000 and multiples thereof. The bonds of Series J and the certificate of the
Trustee upon said bonds shall be substantially in the forms thereof respectively
set forth in Schedule B appended hereto.

      SECTION 2.03. Provisions of Bonds of 2001 Series J; Interest Accrual;
Effect of Payment on Series B PCR Bonds. The bonds of Series J shall mature on
May 1, 2021, and shall bear interest, payable on the interest payment dates
applicable from time to time to the Series B PCR Bonds (each such interest
payment date so applicable to the Series B PCR Bonds being an interest payment
date applicable to the bonds of Series J), until the Company's obligation in
respect of the principal thereof shall be discharged, in amounts equal to the
interest payments due on the Series B PCR Bonds on the interest payment dates
applicable to the bonds of Series J, and shall be payable both as to principal
and interest at the corporate trust office of the Trustee at 21 South Street,
3rd Floor, Morristown, New Jersey, or the corporate trust office of its
successors, in any coin or currency of the United States of America which at the
time of payment is legal tender for the payment of public and private debts. The
interest on the Series J Bonds, whether in temporary or definitive form, shall
be payable without presentation of such bonds, and only to or upon the written
order of the registered holders thereof of record at the applicable record date.
If pursuant to the Series B PCRB Agreement, all or any portion of the principal
of the Series B PCR Bonds shall become or be declared immediately due and
payable, a like principal amount of the Series J Bonds, together with all
accrued interest thereon,

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<PAGE>
shall, without notice or demand of any kind, become immediately due and payable.
In addition, the Series J Bonds shall be callable for redemption in whole or in
part according to the terms and provisions provided herein in Section 2.05.

      Anything in the Indenture or any Series J Bond to the contrary
notwithstanding, the Series J Bonds shall be deemed paid, and all obligations of
the Company to pay at the times provided herein the principal of and premium, if
any, and interest on the Series J Bonds, or to deposit with the Trustee at the
times provided in the Indenture an amount of money sufficient therefor, shall be
satisfied and discharged, when and to the extent that the principal of and
premium, if any, and interest on the Series B PCR Bonds shall have been paid or
deemed paid as provided in the Series B PCRB Agreement. The Series B PCRB
Trustee shall promptly notify the Trustee by telephone, confirmed in writing, of
any default in the payment of principal of and premium, if any, and interest on
the Series B PCR Bonds, and shall promptly notify the Trustee by telephone,
confirmed in writing, of any payment of principal of and premium, if any, and
interest (other than payment of regularly scheduled interest) on the Series B
PCR Bonds, or if the Series B PCR Bonds have been paid or deemed paid, defeased,
redeemed, retired, surrendered or canceled. The Trustee shall be entitled to
rely on any such notification received from the Series B PCRB Trustee.

      Each Series J Bond shall be dated the date of authentication thereof by
the Trustee, and shall bear interest on the principal amount thereof from the
interest payment date next preceding the date thereof to which interest has been
paid on the Bonds of said series, or if the date thereof is prior to the record
date (as hereinafter defined) with respect to the first interest payment date
then from the date of original issue of the Series J Bonds, or if the date
thereof be an interest payment date to which interest is being paid or a date
between the record date for any such interest payment date and such interest
payment date, then from such interest payment date.

      The person in whose name any bond of Series J is registered at the close
of business on any record date (as hereinafter defined) with respect to any
interest payment date shall be entitled to receive the interest payable on such
interest payment date notwithstanding the cancellation of such bond upon any
registration of transfer or exchange thereof subsequent to the record date and
prior to such interest payment date, except that if and to the extent the
Company shall default in the payment of the interest due on such interest
payment date, then such defaulted interest shall be paid to the person in whose
name such bond is registered on a subsequent record date for the payment of
defaulted interest if one shall have been established as hereinafter provided
and otherwise on the date of payment of such defaulted interest. A subsequent
record date may be established by the Company by notice mailed to the owners of
the bonds of Series J not less than ten (10) days preceding such record date,

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<PAGE>
which record date shall not be more than thirty (30) days prior to the
subsequent interest payment date. The term "record date" as used in this Section
with respect to any regular interest payment date shall mean the day next
preceding such interest payment date, or, if such day shall be a legal holiday
or a day on which banking institutions in Morristown, New Jersey are authorized
by law to close, the next preceding day which shall not be a legal holiday or a
day on which such institutions are so authorized to close.

      SECTION 2.04. Transfer and Exchange of Bonds of Series J; Series B PCRB
Trustee as Registered Holder; Restriction on Transfer of Bonds of Series J. The
bonds of Series J may be surrendered for registration or transfer as provided in
Section 2.8 of the Original Indenture, but subject to the restriction set forth
in the immediately succeeding paragraph, at the corporate trust office of the
Trustee at 21 South Street, 3rd Floor, Morristown, New Jersey, or the corporate
trust office of its successors, and may be surrendered at said office for
exchange for a like aggregate principal amount of bonds of Series J of other
authorized denominations and upon surrender for exchange of one or more bonds of
Series J, the Company shall execute and the Trustee shall authenticate and there
shall be delivered in exchange therefor a like aggregate principal amount of
bonds of Series J of other authorized denominations. Notwithstanding the
provisions of Section 2.7 of the Original Indenture, no charge, except for taxes
or other governmental charges, shall be made by the Company for any registration
or transfer of bonds of Series J or for the exchange of any bonds of Series J
for such bonds of other authorized denominations.

      The bonds of Series J shall be issued to and registered in the name of the
Series B PCRB Trustee and, anything in this Twelfth Supplemental Indenture or
any Series J Bond to the contrary notwithstanding, the bonds of Series J shall
not be sold, assigned, pledged or transferred, except to effect the transfer to
any successor trustee under the Series B PCRB Agreement.

      SECTION 2.05. Redemption of the Series J Bonds. If the Series B PCR Bonds
are to be redeemed as a whole or in part on any date as provided in the Series B
PCRB Agreement, a like principal amount of the Series J Bonds shall be redeemed
on such date, at a redemption price equal to the redemption price at which the
Series B PCR Bonds are to be so redeemed, as set forth in the Series B PCRB
Agreement, stated as a percentage of principal amount of the Series B Bonds to
be so redeemed, together in every case with accrued and unpaid interest thereon
to the date fixed for redemption. The Series J Bonds shall be redeemed as
aforesaid in accordance with the provisions hereof and upon not more than
forty-five (45) nor less than thirty (30) days' prior notice given by mail as
provided in Article 6 of the Original Indenture; provided that the Company shall
be deemed to have satisfied such notice requirement if it shall have delivered

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<PAGE>
to the Series B PCRB Trustee, or received from the Series B PCRB Trustee, as
appropriate, at the time and in the manner specified in the Series B PCRB
Agreement, the notice required pursuant to the Series B PCRB Agreement to be
delivered in connection with the redemption of the Series B PCR Bonds. The
Company shall deliver a copy of such notice to the Trustee at the time of such
delivery to or receipt from the Series B PCRB Trustee.

      Redemption of Series J Bonds pursuant to the foregoing provisions of this
Section 2.05 may be made with moneys deposited with or received by the Trustee
pursuant to Section 6.4 of the Original Indenture, or otherwise pursuant to the
Indenture.

      Except as provided in this Section 2.05, the Series J Bonds are not
subject to redemption under any provisions of the Indenture.

      SECTION 2.06. Payment Date Not a Business Day. If any redemption or
maturity date for principal, premium or interest with respect to the Series J
Bonds shall be (i) a Sunday or a legal holiday, or (ii) a day on which banking
institutions are authorized pursuant to law to close and on which the corporate
trust office of the Trustee in Morristown, New Jersey or the Series B PCRB
Trustee is not open for business, then the payment thereof may be made on the
next succeeding day not a day specified in (i) or (ii) with the same force and
effect as if made on the specified payment date and no interest shall accrue for
the period after the specified payment date.

                                    ARTICLE 3
                                 SERIES K BONDS

      SECTION 3.01. Designation; Amount. The Series K Bonds shall be designated
"5.45% First Mortgage Bonds, Series K" and shall not exceed One Hundred Eight
Million Nine Hundred Eighty Five Thousand Dollars ($108,985,000) aggregate
principal amount at any one time outstanding. The Trustee shall authenticate and
deliver up to $108,985,000 aggregate principal amount of Series K Bonds at any
time upon application of the Company.

      SECTION 3.02. Form of Bonds of 2001 Series K. The bonds of Series K shall
be issued in denominations of $5,000 and multiples thereof. The Series K Bonds
and the certificate of the Trustee upon said bonds shall be substantially in the
forms thereof respectively set forth in Schedule C appended hereto.

      SECTION 3.03. Provisions of Bonds of 2001 Series K; Interest Accrual;
Effect of Payment on Series C PCR Bonds. The Series K Bonds shall mature on May
1, 2021, and shall bear interest (computed on the basis of a 360-day year
consisting of twelve 30-day months), payable semiannually on the first day of
May and November of each year, at the rate specified in their title, until the
Company's obligation in respect of the principal

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<PAGE>
thereof shall be discharged and shall be payable as to principal, premium, if
any, and interest at the corporate trust office of the Trustee at 21 South
Street, 3rd Floor, Morristown, New Jersey or the corporate trust office of its
successors, in any coin or currency of the United States of America which at the
time of payment is legal tender for the payment of public and private debts. The
interest on the Series K Bonds, whether in temporary or definitive form, shall
be payable without presentation of such Bonds, and only to or upon the written
order of the registered holders thereof of record at the applicable record date.
If, pursuant to the Series C PCRB Agreement, the principal of the Series C PCR
Bonds shall become or be declared immediately due and payable, the principal of
the Series K Bonds, together with all accrued interest thereon, shall, without
notice or demand of any kind, become immediately due and payable. In addition,
the Series K Bonds shall be callable for redemption in whole or in part
according to the terms and provisions provided herein in Section 3.05.

      Anything in the Indenture or any Series K Bond to the contrary
notwithstanding, the Series K Bonds shall be deemed paid, and all obligations of
the Company to pay at the times provided herein the principal of and premium, if
any, and interest on the Series K Bonds, or to deposit with the Trustee at the
times provided in the Indenture an amount of money sufficient therefor, shall be
satisfied and discharged, when and to the extent that the principal of and
premium, if any, and interest on the Series C PCR Bonds shall have been paid or
deemed paid as provided in the Series C PCRB Agreement. The Series C PCRB
Trustee shall promptly notify the Trustee by telephone, confirmed in writing, of
any default in the payment of principal of and premium, if any, and interest on
the Series C PCR Bonds, and shall promptly notify the Trustee by telephone,
confirmed in writing, of any payment of principal of and premium, if any, and
interest (other than payment of regularly scheduled interest) on the Series C
PCR Bonds, or if the Series C PCR Bonds have been paid or deemed paid, defeased,
redeemed, retired, surrendered or canceled. The Trustee shall be entitled to
rely on any such notification received from the Series C PCRB Trustee.

      Each Series K Bond shall be dated as of the date of authentication thereof
by the Trustee and shall bear interest on the principal amount thereof from the
interest payment date next preceding the date of authentication thereof by the
Trustee to which interest has been paid on the Bonds of said series, or if the
date of authentication thereof is prior to the record date (as hereinafter
defined) with respect to the first interest payment date then from December 1,
2001, or if the date of authentication thereof be an interest payment date to
which interest is being paid or a date between the record date for any such
interest payment date and such interest payment date, then from such interest
payment date.

      The person in whose name any bond of Series K is registered

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<PAGE>
at the close of business on any record date (as hereinafter defined) with
respect to any interest payment date shall be entitled to receive the interest
payable on such interest payment date notwithstanding the cancellation of such
bond upon any transfer or exchange thereof subsequent to the record date and
prior to such interest payment date, except that if and to the extent the
Company shall default in the payment of the interest due on such interest
payment date, then such defaulted interest shall be paid to the person in whose
name such bond is registered on a subsequent record date for the payment of
defaulted interest if one shall have been established as hereinafter provided
and otherwise on the date of payment of such defaulted interest. A subsequent
record date may be established by the Company by notice mailed to the owners of
the bonds of Series K not less than ten (10) days preceding such record date,
which record date shall be not more than thirty (30) days prior to the
subsequent interest payment date. The term "record date" as used in this section
3.03 with respect to any regular interest payment date (i.e. May 1 or November
1) shall mean the day next preceding such interest payment date, or, if such day
shall be a legal holiday or a day on which banking institutions in Morristown,
New Jersey are authorized by law to close, the next preceding day which shall
not be a legal holiday or a day on which such institutions are so authorized to
close.

      SECTION 3.04. Transfer and Exchange of Bonds of Series K; Series C PCRB
Trustee as Registered Holder; Restriction on Transfer of Bonds of Series K. The
bonds of Series K may be surrendered for registration or transfer as provided in
Section 2.8 of the Original Indenture, but subject to the restriction set forth
in the immediately succeeding paragraph, at the corporate trust office of the
Trustee at 21 South Street, 3rd Floor, Morristown, New Jersey, or the corporate
trust office of its successors, and may be surrendered at said office for
exchange for a like aggregate principal amount of bonds of Series K of other
authorized denominations and, upon surrender for exchange of one or more bonds
of Series K, the Company shall execute and the Trustee shall authenticate and
there shall be delivered in exchange therefor a like aggregate principal amount
of bonds of Series K of other authorized denominations. Notwithstanding the
provisions of Section 2.7 of the Original Indenture, no charge, except for taxes
or other governmental charges, shall be made by the Company for any registration
or transfer of bonds of Series K or for the exchange of any bonds of Series K
for such bonds of other authorized denominations.

      The bonds of Series K shall be issued to and registered in the name of the
Series C PCRB Trustee and, anything in the Indenture or any bond of Series K to
the contrary notwithstanding, the bonds of Series K shall not be sold, assigned,
pledged or transferred, except to effect the transfer to any successor trustee
under the Series C PCRB Agreement.

      SECTION 3.05. Redemption of the Series K Bonds. If the

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<PAGE>
Series C PCR Bonds are to be redeemed as a whole or in part on any date as
provided in the Series C PCRB Agreement, a like principal amount of the Series K
Bonds shall be redeemed on such date, at a redemption price equal to the
redemption price at which the Series C PCR Bonds are to be so redeemed, as set
forth in the Series C PCRB Agreement, stated as a percentage of the principal
amount of the Series K Bonds to be so redeemed, together in every case with
accrued and unpaid interest thereon to the date fixed for redemption. The Series
K Bonds shall be redeemed as aforesaid in accordance with the provisions hereof
and upon not more than forty-five (45) nor less than thirty (30) days' prior
notice given by mail as provided in Article 6 of the Original Indenture;
provided that the Company shall be deemed to have satisfied such notice
requirement if it shall have delivered to the Series C PCRB Trustee, or received
from the Series C PCRB Trustee, as appropriate, at the time and in the manner
specified in the Series C PCRB Agreement, the notice required pursuant to the
Series C PCRB Agreement to be delivered in connection with the redemption of the
Series C PCR Bonds. The Company shall deliver a copy of such notice to the
Trustee at the time of such delivery to or receipt from the Series C PCRB
Trustee.

      Redemption of Series K Bonds pursuant to the foregoing provisions of this
Section 3.05 may be made with moneys deposited with or received by the Trustee
pursuant to Section 6.4 of the Original Indenture, or otherwise pursuant to the
Indenture.

      Except as provided in this Section 3.05, the Series K Bonds are not
subject to redemption under any provisions of the Indenture.

      SECTION 3.06. Payment Date Not a Business Day. If any redemption or
maturity date for principal, premium or interest with respect to the Series K
Bonds shall be (i) a Sunday or a legal holiday, or (ii) a day on which banking
institutions are authorized pursuant to law to close and on which the corporate
trust office of the Trustee in Morristown, New Jersey or the Series C PCRB
Trustee is not open for business, then the payment thereof may be made on the
next succeeding day not a day specified in (i) or (ii) with the same force and
effect as if made on the specified payment date and no interest shall accrue for
the period after the specified payment date.

                                    ARTICLE 4
                            MISCELLANEOUS PROVISIONS

      SECTION 4.01. Recitals. The recitals in this Twelfth Supplemental
Indenture shall be taken as recitals by the Company alone, and shall not be
considered as made by or as imposing any obligation or liability upon the
Trustee, nor shall the Trustee be held responsible for the legality or validity
of this Twelfth Supplemental Indenture, and the Trustee makes no covenants or
representations, and shall not be responsible, as to or for the effect,
authorization, execution, delivery or recording of this

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<PAGE>
Twelfth Supplemental Indenture, except as expressly set forth in the Original
Indenture. The Trustee shall not be taken impliedly to waive by this Twelfth
Supplemental Indenture any right it would otherwise have.

      SECTION 4.02. Benefits of Supplemental Indenture. Nothing in this Twelfth
Supplemental Indenture, expressed or implied, is intended or shall be construed
to confer upon, or give to, any person, firm or corporation, other than the
parties hereto and the holders of the bonds, any right, remedy or claim under or
by reason of the Indenture or any covenant, condition or stipulation thereof;
and the covenants, stipulations and agreements in the Indenture contained are
and shall be for the sole and exclusive benefit of the parties hereto, their
successors and assigns, and holders of the bonds.

      SECTION 4.03. Effect of Supplemental Indenture. This Twelfth Supplemental
Indenture is executed, shall be construed as and is expressly stated to be an
indenture supplemental to the Original Indenture and shall form a part of the
Indenture; and the Original Indenture, as supplemented and amended by this
Twelfth Supplemental Indenture, is hereby confirmed and adopted by the Company
as its obligation. All terms used in this Twelfth Supplemental Indenture shall
be taken to have the meaning specified in the Original Indenture, except in
cases where the context clearly indicates otherwise.

      SECTION 4.04. Termination. This Twelfth Supplemental Indenture shall
become void when the Indenture shall be void.

      SECTION 4.05. Trust Indenture Act. If and to the extent that any provision
of this Twelfth Supplemental Indenture limits, qualifies or conflicts with any
of the applicable provisions of Sections 310 to 317, inclusive, of the Trust
Indenture Act of 1939, as amended, such required provision shall control.

      SECTION 4.06. Counterparts. This Twelfth Supplemental Indenture may be
simultaneously executed in any number of counterparts, each of which shall be
deemed an original; and all said counterparts executed and delivered, each as an
original, shall constitute but one and the same instrument, which shall for all
purposes be sufficiently evidenced by any such original counterpart.

      SECTION 4.07. Notices. Any notice to the Trustee under any provision of
this Twelfth Supplemental Indenture shall be sufficiently given if served
personally upon a responsible officer of the Trustee or mailed by registered or
certified mail, postage prepaid, addressed to the Trustee at its corporate trust
office, which is 21 South Street, 3rd Floor, Morristown, New Jersey 07960 as of
the date hereof. The Trustee shall notify the Company from time to time of any
change in the address of its corporate trust office.

Page 21
<PAGE>
      IN WITNESS WHEREOF, PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE has caused
this instrument to be executed and its corporate seal to be hereto affixed, by
its officers, thereunto duly authorized, and FIRST UNION NATIONAL BANK has
caused this instrument to be executed and its corporate seal to be hereto
affixed by its officers thereunto duly authorized, all as of the day and year
first above written but actually executed on December ____, 2001.

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

[CORPORATE SEAL]                       By   /s/ David R. McHale
                                       Name:  David R. McHale

                                       Title: Vice President and Treasurer

Attest: /s/ O. Kay Comendul
Name:   O. Kay Comendul
Title:  Secretary

Signed, sealed and delivered by

Public Service Company of New
Hampshire in the presence of us:

Witnesses

FIRST UNION NATIONAL BANK
as Trustee as aforesaid

By   /s/ Stephanie Roche
     Name:  Stephanie Roche
     Title: Vice President

[CORPORATE SEAL]

Attest:

Name: _______________
Title: _______________

Signed, sealed and delivered by
First Union National Bank in
the presence of us:

________________                         ________________

Witnesses

Page 22
<PAGE>
                                   SCHEDULE A

                           (FORM OF BONDS OF SERIES I)

                THIS BOND IS TRANSFERABLE ONLY AS PROVIDED HEREIN

No.
$89,250,000

                     PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

            Incorporated under the Laws of the State of New Hampshire

                          FIRST MORTGAGE BOND, SERIES I

                            PRINCIPAL DUE MAY 1, 2021

      FOR VALUE RECEIVED, PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE, a corporation
organized and existing under the laws of the State of New Hampshire (hereinafter
called the Company), hereby promises to pay to State Street Bank and Trust
Company, as Trustee under the Series A PCRB Agreement (as defined on the reverse
hereof), or registered assigns, subject to the conditions set forth in this
Bond, the principal sum of Eighty Nine Million Two Hundred Fifty Thousand
Dollars ($89,250,000), on the first day of May, 2021, and to pay interest on
said sum, on the interest payment dates applicable from time to time to the
Series A PCR Bonds (as defined on the reverse hereof) (each such interest
payment date so applicable to such Series A PCR Bonds being an interest payment
date applicable to this Bond), until the Company's obligation with respect to
said principal sum shall be discharged, in amounts equal to the interest
payments due on such Series A PCR Bonds on such interest payment dates
applicable to this Bond. This Bond shall bear interest as aforesaid from the
interest payment date next preceding the date hereof to which such interest has
been paid on the Bonds of this series, or if the date hereof is prior to the
record date with respect to the first interest payment date then from the date
of original issue of the Bonds of this series, or if the date hereof is an
interest

Page 23
<PAGE>
payment date to which interest is being paid or date between the record date for
any such interest payment date and such interest payment date, then from such
interest payment date. Principal, premium, if any, and interest shall be payable
at the corporate trust office of First Union National Bank (herein, with its
successors, generally called the "Trustee") at 21 South Street, 3rd Floor,
Morristown, New Jersey, or the corporate trust office of its successor, in such
coin or currency of the United State of America as at the time of payment is
legal tender for the payment of public and private debts.

      Each installment of interest hereon (other than overdue interest) due on
any interest payment date shall be payable to the person who shall be the
registered owner of this bond at the close of business on the record date, which
shall be the day next preceding such interest payment date, or, if such day
shall be a legal holiday or a day on which banking institutions in Morristown,
New Jersey are authorized by law to close, the next preceding day which shall
not be a legal holiday or a day on which such institutions are so authorized to
close.

      Reference is hereby made to the further provisions of this Bond set forth
on the reverse hereof, including without limitation provisions in regard to the
call and redemption and the registration of transfer and exchangeability of this
bond, and such further provisions shall for all purposes have the same effect as
though fully set forth in this place.

      This bond shall not become or be valid or obligatory until the certificate
of authentication hereon shall have been signed by the Trustee.

      IN WITNESS WHEREOF, Public Service Company of New Hampshire has caused
this bond to be executed in its corporate name and on its behalf by its Vice
President and Treasurer by his signature or a facsimile thereof, and its
corporate seal to be affixed or imprinted hereon and attested by the manual or
facsimile signature of its Secretary.

Dated as of December 19, 2001.

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

By     /s/ David R. McHale
Name:  David R. McHale
Title: Vice President and Treasurer

Attest:

by     /s/ O. Kay Comendul
Name:  O. Kay Comendul
Title: Secretary

                         [FORM OF TRUSTEE'S CERTIFICATE]

      First Union National Bank hereby certifies that this bond is one of the
bonds described in the within mentioned Indenture.

FIRST UNION NATIONAL BANK, TRUSTEE

By _______________________________

Name:
Title:  Authorized Officer

Page 24
<PAGE>
                                 [FORM OF BOND]

                                    [REVERSE]

                     PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

                          First Mortgage Bond, Series I

      This Bond is one of a series of Bonds in fully registered form known as
the "First Mortgage Bonds, Series I" of the Company, limited to Eighty Nine
Million Two Hundred Fifty Thousand Dollars ($89,250,000) in aggregate principal
amount, and issued under and pursuant to a First Mortgage Indenture between the
Company and New England Merchants National Bank (later known as Bank of New
England, National Association), as Trustee, dated as of August 15, 1978, as
amended, and pursuant to which First Union National Bank is now Successor
Trustee (said First Mortgage Indenture (i) as amended by the Tenth Supplemental
Indenture thereto, being hereinafter generally called the "Original Indenture,"
and (ii) together with the Eleventh and Twelfth Supplemental Indentures, and all
other indentures expressly stated to be supplemental thereto, being hereinafter
generally called the "Indenture"), and together with all bonds of all series now
outstanding or hereafter issued under the Indenture being equally and ratably
secured (except as any sinking or other analogous fund, established in
accordance with the provisions of the Indenture, may afford additional security
for the bonds of any particular series) by the Indenture, to which Indenture
(executed counterparts of which are on file at the corporate trust office of the
Trustee in Morristown, New Jersey) reference is hereby made for a description of
the nature and extent of the security, the rights thereunder of the holders of
bonds issued and to be issued thereunder, the rights, duties and immunities
thereunder of the Trustee, the rights and obligations thereunder

Page 25
<PAGE>
of the Company, and the terms and conditions upon which Bonds of this series,
and bonds of other series, are issued and are to be issued; but neither the
foregoing reference to the Indenture nor any provision of this Bond or of the
Indenture shall affect or impair the obligation of the Company, which is
absolute, unconditional and unalterable, to pay at the maturities herein
provided the principal of and interest on this Bond as herein provided.

      This bond, together with all other bonds of this series, if any, is issued
to evidence and secure the Company's obligation under a Series A Loan and Trust
Agreement dated as of October 1, 2001 (herein called the "Series A PCRB
Agreement"), by and among the Business Finance Authority of the State of New
Hampshire (herein called the "Authority"), the Company and State Street Bank and
Trust Company, as trustee (herein called the "Series A PCRB Trustee"), to make
loan payments as described below and to provide security for the Pollution
Control Revenue Bonds (Public Service Company of New Hampshire Project - 2001
Tax-Exempt Series A) (herein called the "Series A PCR Bonds") issued by the
Authority in a principal amount of $89,250,000 pursuant to the Series A PCRB
Agreement. Pursuant to the Series A PCRB Agreement, the Authority, on the date
of original issue, loaned the proceeds from the sale of the Series A PCR Bonds
to the Company to finance and refinance a portion of the Company's share of
expenditures, including financing costs, relating to the construction of certain
pollution control, sewage and/or solid waste disposal facilities required for
the operation of the Seabrook nuclear-fueled, steam electric generating plant,
Unit 1, located in Seabrook, New Hampshire, in which the Company owned an
undivided 35.6% interest. The Series A PCR Bonds are special obligations of the
Authority, payable solely out of the revenues and other receipts, funds and
moneys derived by the Authority under the Series A PCRB Agreement and from any
amounts otherwise available under the Series A PCRB Agreement for the payment of
the Series A PCR Bonds. Such revenues and other receipts, funds, moneys and
amounts have been, pursuant to the Series A PCRB Agreement, assigned and pledged
by the Authority to the Series A PCRB Trustee as security for the Series A PCR
Bonds and include loan payments required to be made by the Company to the Series
A PCRB Trustee for the account of the Authority pursuant to the Series A PCRB
Agreement in amounts equal to the amounts payable with respect to the Series A
PCR Bonds. This Bond, together with all other Bonds of this series, if any, has
been issued to and registered in the name of the Series A PCRB Trustee and,
anything in the Indenture or any Bond of this series to the contrary
notwithstanding, the Bonds of this series shall not be sold, assigned, pledged
or transferred, except to effect the transfer to any successor trustee under the
Series A PCRB Agreement.

      Anything in the Indenture or any Bond of this series to the contrary
notwithstanding, the Bonds of this series shall be deemed paid, and all
obligations of the Company to pay at the times provided herein the principal of
and premium, if any, and

Page 26
<PAGE>
interest on the Bonds of this series, or to deposit with the Trustee at the
times provided in the Indenture an amount of money sufficient therefor, shall be
satisfied and discharged, when and to the extent that the principal of and
premium, if any, and interest on the Series A PCR Bonds shall have been paid or
deemed paid as provided in the Series A PCRB Agreement.

      The bonds of this Series I in permanent form are issuable in denominations
of twenty five thousand dollars ($25,000) and multiples thereof.

      Subject to the restriction on transfer set forth above, this Bond is
transferable by the registered owner hereof upon surrender hereof at the
corporate trust office of the Trustee, together with a written instrument of
transfer in approved form, signed by the owner or his duly authorized attorney,
and a new Bond or Bonds of this series for a like principal amount will be
issued in exchange, all as provided in the Indenture. Prior to due presentment
for registration of transfer of this Bond, the Company and the Trustee may deem
and treat the registered owner hereof as the absolute owner hereof, whether or
not this Bond be overdue, for the purpose of receiving payment and for all other
purposes, and neither the Company nor the Trustee shall be affected by any
notice to the contrary.

      This bond is exchangeable at the option of the registered holder hereof
upon surrender hereof, at the corporate trust office of the Trustee at 21 South
Street, 3rd Floor, Morristown, New Jersey, or the corporate trust office of its
successors, for an equal principal amount of bonds of this series of other
authorized denominations, in the manner and on the terms provided in the
Indenture.

      If, pursuant to the Series A PCRB Agreement, all or a portion of the
principal of the Series A PCR Bonds shall become or be declared immediately due
and payable, a like principal amount of the Bonds of this series, together with
all accrued interest thereon, shall without notice or demand of any kind, become
immediately due and payable. The Series A PCR Bonds are subject to such
acceleration upon the occurrence and continuance of any of the "Events of
Default" specified in the Series A PCRB Agreement.

      If the Series A PCR Bonds are to be redeemed as a whole or in part on any
date as provided in the Series A PCRB Agreement, a like principal amount of the
Series I Bonds shall be redeemed on such date, at a redemption price equal to
the redemption price at which the Series A PCR Bonds are to be so redeemed, as
set forth in the Series A PCRB Agreement, stated as a percentage of principal
amount of the Series I Bonds to be so redeemed, together in every case with
accrued and unpaid interest thereon to the date fixed for redemption. The Series
I Bonds shall be redeemed as aforesaid in accordance with the provisions of the
Indenture and upon not more than forty-five (45) nor less than

Page 27
<PAGE>
thirty (30) days' prior notice given by mail as provided in Indenture; provided
that the Company shall be deemed to have satisfied such notice requirement if it
shall have delivered to the Series A PCRB Trustee, or received from the Series A
PCRB Trustee, as appropriate, at the time and in the manner specified in the
Series A PCRB Agreement, the notice required pursuant to the Series A PCRB
Agreement to be delivered in connection with the redemption of the Series A PCR
Bonds. The Company shall deliver a copy of such notice to the Trustee at the
time of such delivery to or receipt from the Series A PCRB Trustee.

      Except as provided in the immediately preceding paragraph, the Bonds of
this series are not subject to redemption under any provisions of the Indenture.

      If this Bond is called in whole or in part, and if moneys have been duly
deposited or otherwise made available to the Trustee for redemption hereof, or
of the part hereof so called, as required in the Indenture, this Bond, or such
called part hereof, shall be due and payable on the date fixed for redemption
and thereafter this Bond, or such called part hereof, shall cease to bear
interest on the date fixed for redemption and shall cease to be entitled to the
lien of the Indenture, and, as respects the Company's liability hereon, this
Bond, or such called part hereof, shall be deemed to have been paid; but, if
less than the whole principal amount hereof shall be so called, the registered
owner hereof shall be entitled, in addition to the sums payable on account of
the part called, to receive, without expense to such owner, upon surrender
hereof, one or more Bonds of this series for an aggregate principal amount equal
to that part of the principal amount hereof not then called and paid.

      The Indenture contains provisions permitting the Company and the Trustee
to effect, by supplemental indenture, certain modifications of the Indenture
without any consent of the holders of the bonds, and to effect certain other
modifications of the Indenture, and of the rights of the holders of the bonds,
with the consent of the holders of not less than a majority in aggregate
principal amount of all bonds issued under the Indenture at the time
outstanding, or in case one or more, but less than all, of the series of said
bonds then outstanding are affected, with the consent of the holders of not less
than a majority in aggregate principal amount of said outstanding bonds of each
series affected.

      No recourse shall be had for the payment of the principal of or premium,
if any, or interest on this Bond, or for any claim based hereon, or otherwise in
respect hereof or of the Indenture, to or against any incorporator or against
any stockholder, director or officer, past, present or future, as such, of the
Company or any affiliate of the Company, or of any predecessor or successor
company, either directly or through the Company, or such predecessor or
successor company or any trustee, receiver or assignee or otherwise, under any
constitution, or statute or rule of law, or by the enforcement of any assessment
or penalty, or otherwise, all such liability of incorporators, stockholders,
directors or officers, as such, being waived and released by the holder and
owner hereof by the acceptance of this Bond and as part of the consideration for
the issuance hereof and being likewise waived and released by the terms of the
Indenture.

Page 28
<PAGE>
                                   SCHEDULE B

                           (FORM OF BONDS OF SERIES J)

                THIS BOND IS TRANSFERABLE ONLY AS PROVIDED HEREIN

No.
$89,250,000

                     PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

            Incorporated under the Laws of the State of New Hampshire

                          FIRST MORTGAGE BOND, SERIES J

                            PRINCIPAL DUE MAY 1, 2021

      FOR VALUE RECEIVED, PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE, a corporation
organized and existing under the laws of the State of New Hampshire (hereinafter
called the Company), hereby promises to pay to State Street Bank and Trust
Company, as Trustee under the Series B PCRB Agreement (as defined on the reverse
hereof), or registered assigns, subject to the conditions set forth in this
Bond, the principal sum of Eighty Nine Million Two Hundred Fifty Thousand
Dollars ($89,250,000), on the first day of May, 2021, and to pay interest on
said sum, on the interest payment dates applicable from time to time to the
Series B PCR Bonds (as defined on the reverse hereof) (each such interest
payment date so applicable to such Series B PCR Bonds being an interest payment
date applicable to this Bond), until the Company's obligation with respect to
said principal sum shall be discharged, in amounts equal to the interest
payments due on such Series B PCR Bonds on such interest payment dates
applicable to this Bond. This Bond shall bear interest as aforesaid from the
interest payment date next preceding the date hereof to which such interest has
been paid on the Bonds of this series, or if the date hereof is prior to the
record date with respect to the first interest payment date then from the date
of original issue of the Bonds of this series, or if the date hereof is an
interest payment date to which interest is being paid or date between the record
date for any such interest payment date and such interest payment date, then
from such interest payment date. Principal, premium, if any, and interest shall
be payable at the corporate trust office of First Union National Bank (herein,
with its successors, generally called the "Trustee") at 21 South Street,

Page 29
<PAGE>
3rd Floor, Morristown, New Jersey, or the corporate trust office of its
successor, in such coin or currency of the United State of America as at the
time of payment is legal tender for the payment of public and private debts.

      Each installment of interest hereon (other than overdue interest) due on
any interest payment date shall be payable to the person who shall be the
registered owner of this bond at the close of business on the record date, which
shall be the day next preceding such interest payment date, or, if such day
shall be a legal holiday or a day on which banking institutions in Morristown,
New Jersey are authorized by law to close, the next preceding day which shall
not be a legal holiday or a day on which such institutions are so authorized to
close.

      Reference is hereby made to the further provisions of this Bond set forth
on the reverse hereof, including without limitation provisions in regard to the
call and redemption and the registration of transfer and exchangeability of this
bond, and such further provisions shall for all purposes have the same effect as
though fully set forth in this place.

      This bond shall not become or be valid or obligatory until the certificate
of authentication hereon shall have been signed by the Trustee.

      IN WITNESS WHEREOF, Public Service Company of New Hampshire has caused
this bond to be executed in its corporate name and on its behalf by its Vice
President and Treasurer by his signature or a facsimile thereof, and its
corporate seal to be affixed or imprinted hereon and attested by the manual or
facsimile signature of its Secretary.

Dated as of December 19, 2001.

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

By     /s/ David R. McHale
Name:  David R. McHale
Title: Vice President and Treasurer

Attest:

By     /s/ O. Kay Comendul
Name:  O. Kay Comendul
Title: Secretary

                         [FORM OF TRUSTEE'S CERTIFICATE]

      First Union National Bank hereby certifies that this bond is one of the
bonds described in the within mentioned Indenture.

FIRST UNION NATIONAL BANK, TRUSTEE

By _______________________________
Name:
Title:  Authorized Officer

Page 30
<PAGE>
                                 [FORM OF BOND]

                                    [REVERSE]

                     PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

                          First Mortgage Bond, Series J

      This Bond is one of a series of Bonds in fully registered form known as
the "First Mortgage Bonds, Series J" of the Company, limited to Eighty Nine
Million Two Hundred Fifty Thousand Dollars ($89,250,000) in aggregate principal
amount, and issued under and pursuant to a First Mortgage Indenture between the
Company and New England Merchants National Bank (later known as Bank of New
England, National Association), as Trustee, dated as of August 15, 1978, as
amended, and pursuant to which First Union National Bank is now Successor
Trustee (said First Mortgage Indenture (i) as amended by the Tenth Supplemental
Indenture thereto, being hereinafter generally called the "Original Indenture,"
and (ii) together with the Eleventh and Twelfth Supplemental Indentures and all
other indentures expressly stated to be supplemental thereto, being hereinafter
generally called the "Indenture"), and together with all bonds of all series now
outstanding or hereafter issued under the Indenture being equally and ratably
secured (except as any sinking or other analogous fund, established in
accordance with the provisions of the Indenture, may afford additional security
for the bonds of any particular series) by the Indenture, to which Indenture
(executed counterparts of which are on file at the corporate trust office of the
Trustee in Morristown, New Jersey) reference is hereby made for a description of
the nature and extent of the security, the rights thereunder of the holders of
bonds issued and to be issued thereunder, the rights, duties and immunities
thereunder of the Trustee, the rights and obligations thereunder of the Company,
and the terms and conditions upon which Bonds of this series, and bonds of other
series, are issued and are to be issued; but neither the foregoing reference to
the Indenture nor any provision of this Bond or of the Indenture shall affect or
impair the obligation of the Company, which is absolute, unconditional and
unalterable, to pay at the maturities herein provided the principal of and
interest on this Bond as herein provided.

      This bond, together with all other bonds of this series, if any, is issued
to evidence and secure the Company's obligation under a Series B Loan and Trust
Agreement dated as of October 1, 2001 (herein called the "Series B PCRB
Agreement"), by and among the Business Finance Authority of the State of New
Hampshire (herein called the "Authority"), the Company and State Street

Page 31
<PAGE>
Bank and Trust Company, as trustee (herein called the "Series B PCRB Trustee"),
to make loan payments as described below and to provide security for the
Pollution Control Revenue Bonds (Public Service Company of New Hampshire Project
- 2001 Tax-Exempt Series B) (herein called the "Series B PCR Bonds") issued by
the Authority in a principal amount of $89,250,000 pursuant to the Series B PCRB
Agreement. Pursuant to the Series B PCRB Agreement, the Authority, on the date
of original issue, loaned the proceeds from the sale of the Series B PCR Bonds
to the Company to finance and refinance a portion of the Company's share of
expenditures, including financing costs, relating to the construction of certain
pollution control, sewage and/or solid waste disposal facilities required for
the operation of the Seabrook nuclear-fueled, steam electric generating plant,
Unit 1, located in Seabrook, New Hampshire, in which the Company owned an
undivided 35.6% interest. The Series B PCR Bonds are special obligations of the
Authority, payable solely out of the revenues and other receipts, funds and
moneys derived by the Authority under the Series B PCRB Agreement and from any
amounts otherwise available under the Series B PCRB Agreement for the payment of
the Series B PCR Bonds. Such revenues and other receipts, funds, moneys and
amounts have been, pursuant to the Series B PCRB Agreement, assigned and pledged
by the Authority to the Series B PCRB Trustee as security for the Series B PCR
Bonds and include loan payments required to be made by the Company to the Series
B PCRB Trustee for the account of the Authority pursuant to the Series B PCRB
Agreement in amounts equal to the amounts payable with respect to the Series B
PCR Bonds. This Bond, together with all other Bonds of this series, if any, has
been issued to and registered in the name of the Series B PCRB Trustee and,
anything in the Indenture or any Bond of this series to the contrary
notwithstanding, the Bonds of this series shall not be sold, assigned, pledged
or transferred, except to effect the transfer to any successor trustee under the
Series B PCRB Agreement.

      Anything in the Indenture or any Bond of this series to the contrary
notwithstanding, the Bonds of this series shall be deemed paid, and all
obligations of the Company to pay at the times provided herein the principal of
and premium, if any, and interest on the Bonds of this series, or to deposit
with the Trustee at the times provided in the Indenture an amount of money
sufficient therefor, shall be satisfied and discharged, when and to the extent
that the principal of and premium, if any, and interest on the Series B PCR
Bonds shall have been paid or deemed paid as provided in the Series B PCRB
Agreement.

      The bonds of this Series J in permanent form are issuable in denominations
of twenty five thousand dollars ($25,000) and multiples thereof.

      Subject to the restriction on transfer set forth above, this Bond is
transferable by the registered owner hereof upon surrender hereof at the
corporate trust office of the Trustee, together with a written instrument of
transfer in approved form,

Page 32
<PAGE>
signed by the owner or his duly authorized attorney, and a new Bond or Bonds of
this series for a like principal amount will be issued in exchange, all as
provided in the Indenture. Prior to due presentment for registration of transfer
of this Bond, the Company and the Trustee may deem and treat the registered
owner hereof as the absolute owner hereof, whether or not this Bond be overdue,
for the purpose of receiving payment and for all other purposes, and neither the
Company nor the Trustee shall be affected by any notice to the contrary.

      This bond is exchangeable at the option of the registered holder hereof
upon surrender hereof, at the corporate trust office of the Trustee at 21 South
Street, 3rd Floor, Morristown, New Jersey, or the corporate trust office of its
successors, for an equal principal amount of bonds of this series of other
authorized denominations, in the manner and on the terms provided in the
Indenture.

      If, pursuant to the Series B PCRB Agreement, all or a portion of the
principal of the Series B PCR Bonds shall become or be declared immediately due
and payable, a like principal amount of the Bonds of this series, together with
all accrued interest thereon, shall without notice or demand of any kind, become
immediately due and payable. The Series B PCR Bonds are subject to such
acceleration upon the occurrence and continuance of any of the "Events of
Default" specified in the Series B PCRB Agreement.

      If the Series B PCR Bonds are to be redeemed as a whole or in part on any
date as provided in the Series B PCRB Agreement, a like principal amount of the
Series J Bonds shall be redeemed on such date, at a redemption price equal to
the redemption price at which the Series B PCR Bonds are to be so redeemed, as
set forth in the Series B PCRB Agreement, stated as a percentage of principal
amount of the Series J Bonds to be so redeemed, together in every case with
accrued and unpaid interest thereon to the date fixed for redemption. The Series
J Bonds shall be redeemed as aforesaid in accordance with the provisions of the
Indenture and upon not more than forty-five (45) nor less than thirty (30) days'
prior notice given by mail as provided in Indenture; provided that the Company
shall be deemed to have satisfied such notice requirement if it shall have
delivered to the Series B PCRB Trustee, or received from the Series B PCRB
Trustee, as appropriate, at the time and in the manner specified in the Series B
PCRB Agreement, the notice required pursuant to the Series B PCRB Agreement to
be delivered in connection with the redemption of the Series B PCR Bonds. The
Company shall deliver a copy of such notice to the Trustee at the time of such
delivery to or receipt from the Series B PCRB Trustee.

      Except as provided in the immediately preceding paragraph, the Bonds of
this series are not subject to redemption under any provisions of the Indenture.

Page 33
<PAGE>
      If this Bond is called in whole or in part, and if moneys have been duly
deposited or otherwise made available to the Trustee for redemption hereof, or
of the part hereof so called, as required in the Indenture, this Bond, or such
called part hereof, shall be due and payable on the date fixed for redemption
and thereafter this Bond, or such called part hereof, shall cease to bear
interest on the date fixed for redemption and shall cease to be entitled to the
lien of the Indenture, and, as respects the Company's liability hereon, this
Bond, or such called part hereof, shall be deemed to have been paid; but, if
less than the whole principal amount hereof shall be so called, the registered
owner hereof shall be entitled, in addition to the sums payable on account of
the part called, to receive, without expense to such owner, upon surrender
hereof, one or more Bonds of this series for an aggregate principal amount equal
to that part of the principal amount hereof not then called and paid.

      The Indenture contains provisions permitting the Company and the Trustee
to effect, by supplemental indenture, certain modifications of the Indenture
without any consent of the holders of the bonds, and to effect certain other
modifications of the Indenture, and of the rights of the holders of the bonds,
with the consent of the holders of not less than a majority in aggregate
principal amount of all bonds issued under the Indenture at the time
outstanding, or in case one or more, but less than all, of the series of said
bonds then outstanding are affected, with the consent of the holders of not less
than a majority in aggregate principal amount of said outstanding bonds of each
series affected.

      No recourse shall be had for the payment of the principal of or premium,
if any, or interest on this Bond, or for any claim based hereon, or otherwise in
respect hereof or of the Indenture, to or against any incorporator or against
any stockholder, director or officer, past, present or future, as such, of the
Company or any affiliate of the Company, or of any predecessor or successor
company, either directly or through the Company, or such predecessor or
successor company or any trustee, receiver or assignee or otherwise, under any
constitution, or statute or rule of law, or by the enforcement of any assessment
or penalty, or otherwise, all such liability of incorporators, stockholders,
directors or officers, as such, being waived and released by the holder and
owner hereof by the acceptance of this Bond and as part of the consideration for
the issuance hereof and being likewise waived and released by the terms of the
Indenture.

Page 34
<PAGE>
                                   SCHEDULE C

                           (FORM OF BONDS OF SERIES K)

                THIS BOND IS TRANSFERABLE ONLY AS PROVIDED HEREIN

No.
$108,985,000

                     PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

            Incorporated under the Laws of the State of New Hampshire

                       5.45% FIRST MORTGAGE BOND, SERIES K

                            PRINCIPAL DUE MAY 1, 2021

      FOR VALUE RECEIVED, PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE, a corporation
organized and existing under the laws of the State of New Hampshire (hereinafter
called the Company), hereby promises to pay to State Street Bank and Trust
Company, as Trustee under the Series C PCRB Agreement (as defined on the reverse
hereof), or registered assigns, subject to the conditions set forth in this
Bond, the principal sum of One Hundred Eight Million Nine Hundred Eight Five
Thousand Dollars ($108,985,000), on the first day of May, 2021, and to pay
interest on said sum (computed on the basis of a 360-day year consisting of
twelve 30 day months), semiannually on the first day of May and November, until
the Company's obligation with respect to said principal sum shall be discharged,
at the rate per annum specified in the title of this Bond from the interest
payment date next preceding the date of authentication hereof to which interest
has been paid on the Bonds of this series, or if the date of authentication
hereof is prior to the record date with respect to the first interest payment
with respect to the first interest payment date, then from December 1, 2001, or
if the date of authentication hereof is an interest payment date to which
interest is being paid or a date between the record date for such interest
payment and such interest payment date, then from such interest payment date.
Principal, premium, if any, and interest shall be payable at the corporate trust
office of First Union National Bank (herein, with its successors, generally
called the "Trustee") at 21 South Street, 3rd Floor, Morristown, New Jersey, or
the corporate trust office of its successor, in such coin or currency of the
United State of America as at the time of payment is legal tender for the
payment of public and private debts.

      Each installment of interest hereon (other than overdue interest) due on
any interest payment date shall be payable to the person who shall be the
registered owner of this bond at the close of business on the record date, which
shall be the day next preceding such interest payment date, or, if such day
shall be a legal holiday or a day on which banking institutions in Morristown,
New Jersey are authorized by law to close, the next preceding day which shall
not be a legal holiday or a day on which such institutions are so authorized to
close.

      Reference is hereby made to the further provisions of this Bond set forth
on the reverse hereof, including without limitation provisions in regard to the
call and redemption and

Page 35
<PAGE>
the registration of transfer and exchangeability of this bond, and such further
provisions shall for all purposes have the same effect as though fully set forth
in this place.

      This bond shall not become or be valid or obligatory until the certificate
of authentication hereon shall have been signed by the Trustee.

      IN WITNESS WHEREOF, Public Service Company of New Hampshire has caused
this bond to be executed in its corporate name and on its behalf by its Vice
President and Treasurer by his signature or a facsimile thereof, and its
corporate seal to be affixed or imprinted hereon and attested by the manual or
facsimile signature of its Secretary.

Dated as of December 1, 2001.

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

By /s/ David R. McHale
Name:  David R. McHale
Title: Vice President and Treasurer

Attest:

By:    O. Kay Comendul
Name:  O. Kay Comendul
       Title: Secretary

                         [FORM OF TRUSTEE'S CERTIFICATE]

      First Union National Bank hereby certifies that this bond is one of the
bonds described in the within mentioned Indenture.

FIRST UNION NATIONAL BANK, TRUSTEE

By _______________________________
Name:
Title:  Authorized Officer

Page 36
<PAGE>
                                 [FORM OF BOND]

                                    [REVERSE]

                     PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

                       5.45% First Mortgage Bond, Series K

      This Bond is one of a series of Bonds in fully registered form known as
the "5.45% First Mortgage Bonds, Series K" of the Company, limited to One
Hundred Eight Nine Hundred Eighty Five Thousand Dollars ($108,985,000) in
aggregate principal amount, and issued under and pursuant to a First Mortgage
Indenture between the Company and New England Merchants National Bank (later
known as Bank of New England, National Association), as Trustee, dated as of
August 15, 1978, as amended, and pursuant to which First Union National Bank is
now Successor Trustee (said First Mortgage Indenture (i) as amended by the Tenth
Supplemental Indenture thereto, being hereinafter generally called the "Original
Indenture," and (ii) together with the Eleventh and Twelfth Supplemental
Indentures and all other indentures expressly stated to be supplemental thereto,
being hereinafter generally called the "Indenture"), and together with all bonds
of all series now outstanding or hereafter issued under the Indenture being
equally and ratably secured (except as any sinking or other analogous fund,
established in accordance with the provisions of the Indenture, may afford
additional security for the bonds of any particular series) by the Indenture, to
which Indenture (executed counterparts of which are on file at the corporate
trust office of the Trustee in Morristown, New Jersey) reference is hereby made
for a description of the nature and extent of the security, the rights
thereunder of the holders of bonds issued and to be issued thereunder, the
rights, duties and immunities thereunder of the Trustee, the rights and
obligations thereunder of the Company, and the terms and conditions upon which
Bonds of this series, and bonds of other series, are issued and are to be
issued; but neither the foregoing reference to the Indenture nor any provision
of this Bond or of the Indenture shall affect or impair the obligation of the
Company, which is absolute, unconditional and unalterable, to pay at the
maturities herein provided the principal of and interest on this Bond as herein
provided.

      This bond, together with all other bonds of this series, if any, is issued
to evidence and secure the Company's obligation under a Series C Loan and Trust
Agreement dated as of October 1, 2001 (herein called the "Series C PCRB
Agreement"), by and among the Business Finance Authority of the State of New
Hampshire (herein called the "Authority"), the Company and State Street Bank and
Trust Company, as trustee (herein called the "Series C PCRB Trustee"), to make
loan payments as described below and to provide security for the Pollution
Control Revenue Bonds (Public Service Company of New Hampshire Project - 2001
Tax-Exempt Series C) (herein called the "Series C PCR Bonds") issued by the
Authority in a principal amount of $108,985,000 pursuant to the Series C PCRB
Agreement. Pursuant to the Series C PCRB Agreement, the Authority, on the date
of original issue, loaned the proceeds from the sale of the Series C PCR Bonds
to the Company to finance and refinance a portion of the Company's share of
expenditures, including financing costs, relating to the construction of certain
pollution control, sewage and/or solid waste disposal facilities required for
the operation of the Seabrook nuclear-fueled, steam electric generating plant,
Unit 1, located in Seabrook, New Hampshire, in which the Company owned an
undivided 35.6% interest. The Series C PCR Bonds are special obligations of the
Authority, payable solely out of the revenues and other receipts, funds and
moneys derived by the Authority under the Series C PCRB Agreement and from any
amounts otherwise

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<PAGE>
available under the Series C PCRB Agreement for the payment of the Series C PCR
Bonds. Such revenues and other receipts, funds, moneys and amounts have been,
pursuant to the Series C PCRB Agreement, assigned and pledged by the Authority
to the Series C PCRB Trustee as security for the Series C PCR Bonds and include
loan payments required to be made by the Company to the Series C PCRB Trustee
for the account of the Authority pursuant to the Series C PCRB Agreement in
amounts equal to the amounts payable with respect to the Series C PCR Bonds.
This Bond, together with all other Bonds of this series, if any, has been issued
to and registered in the name of the Series C PCRB Trustee and, anything in the
Indenture or any Bond of this series to the contrary notwithstanding, the Bonds
of this series shall not be sold, assigned, pledged or transferred, except to
effect the transfer to any successor trustee under the Series C PCRB Agreement.

      Anything in the Indenture or any Bond of this series to the contrary
notwithstanding, the Bonds of this series shall be deemed paid, and all
obligations of the Company to pay at the times provided herein the principal of
and premium, if any, and interest on the Bonds of this series, or to deposit
with the Trustee at the times provided in the Indenture an amount of money
sufficient therefor, shall be satisfied and discharged, when and to the extent
that the principal of and premium, if any, and interest on the Series C PCR
Bonds shall have been paid or deemed paid as provided in the Series C PCRB
Agreement.

      The bonds of this Series K in permanent form are issuable in denominations
of five thousand dollars ($5,000) and multiples thereof.

      Subject to the restriction on transfer set forth above, this Bond is
transferable by the registered owner hereof upon surrender hereof at the
corporate trust office of the Trustee, together with a written instrument of
transfer in approved form, signed by the owner or his duly authorized attorney,
and a new Bond or Bonds of this series for a like principal amount will be
issued in exchange, all as provided in the Indenture. Prior to due presentment
for registration of transfer of this Bond, the Company and the Trustee may deem
and treat the registered owner hereof as the absolute owner hereof, whether or
not this Bond be overdue, for the purpose of receiving payment and for all other
purposes, and neither the Company nor the Trustee shall be affected by any
notice to the contrary.

      This bond is exchangeable at the option of the registered holder hereof
upon surrender hereof, at the corporate trust office of the Trustee at 21 South
Street, 3rd Floor, Morristown, New Jersey, or the corporate trust office of its
successors, for an equal principal amount of bonds of this series of other
authorized denominations, in the manner and on the terms provided in the
Indenture.

      If, pursuant to the Series C PCRB Agreement, all or a

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<PAGE>
portion of the principal of the Series C PCR Bonds shall become or be declared
immediately due and payable, a like principal amount of the Bonds of this
series, together with all accrued interest thereon, shall without notice or
demand of any kind, become immediately due and payable. The Series C PCR Bonds
are subject to such acceleration upon the occurrence and continuance of any of
the "Events of Default" specified in the Series C PCRB Agreement.

      If the Series C PCR Bonds are to be redeemed as a whole or in part on any
date as provided in the Series C PCRB Agreement, a like principal amount of the
Series K Bonds shall be redeemed on such date, at a redemption price equal to
the redemption price at which the Series C PCR Bonds are to be so redeemed, as
set forth in the Series C PCRB Agreement, stated as a percentage of principal
amount of the Series K Bonds to be so redeemed, together in every case with
accrued and unpaid interest thereon to the date fixed for redemption. The Series
K Bonds shall be redeemed as aforesaid in accordance with the provisions of the
Indenture and upon not more than forty-five (45) nor less than thirty (30) days'
prior notice given by mail as provided in Indenture; provided that the Company
shall be deemed to have satisfied such notice requirement if it shall have
delivered to the Series C PCRB Trustee, or received from the Series C PCRB
Trustee, as appropriate, at the time and in the manner specified in the Series C
PCRB Agreement, the notice required pursuant to the Series C PCRB Agreement to
be delivered in connection with the redemption of the Series C PCR Bonds. The
Company shall deliver a copy of such notice to the Trustee at the time of such
delivery to or receipt from the Series C PCRB Trustee.

      Except as provided in the immediately preceding paragraph, the Bonds of
this series are not subject to redemption under any provisions of the Indenture.

      If this Bond is called in whole or in part, and if moneys have been duly
deposited or otherwise made available to the Trustee for redemption hereof, or
of the part hereof so called, as required in the Indenture, this Bond, or such
called part hereof, shall be due and payable on the date fixed for redemption
and thereafter this Bond, or such called part hereof, shall cease to bear
interest on the date fixed for redemption and shall cease to be entitled to the
lien of the Indenture, and, as respects the Company's liability hereon, this
Bond, or such called part hereof, shall be deemed to have been paid; but, if
less than the whole principal amount hereof shall be so called, the registered
owner hereof shall be entitled, in addition to the sums payable on account of
the part called, to receive, without expense to such owner, upon surrender
hereof, one or more Bonds of this series for an aggregate principal amount equal
to that part of the principal amount hereof not then called and paid.

      The Indenture contains provisions permitting the Company and the Trustee
to effect, by supplemental indenture, certain

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<PAGE>
modifications of the Indenture without any consent of the holders of the bonds,
and to effect certain other modifications of the Indenture, and of the rights of
the holders of the bonds, with the consent of the holders of not less than a
majority in aggregate principal amount of all bonds issued under the Indenture
at the time outstanding, or in case one or more, but less than all, of the
series of said bonds then outstanding are affected, with the consent of the
holders of not less than a majority in aggregate principal amount of said
outstanding bonds of each series affected.

      No recourse shall be had for the payment of the principal of or premium,
if any, or interest on this Bond, or for any claim based hereon, or otherwise in
respect hereof or of the Indenture, to or against any incorporator or against
any stockholder, director or officer, past, present or future, as such, of the
Company or any affiliate of the Company, or of any predecessor or successor
company, either directly or through the Company, or such predecessor or
successor company or any trustee, receiver or assignee or otherwise, under any
constitution, or statute or rule of law, or by the enforcement of any assessment
or penalty, or otherwise, all such liability of incorporators, stockholders,
directors or officers, as such, being waived and released by the holder and
owner hereof by the acceptance of this Bond and as part of the consideration for
the issuance hereof and being likewise waived and released by the terms of the
Indenture.

Page 40
<PAGE>
                                   SCHEDULE D
                        Description of Certain Properties
                                    Acquired
                               Since April 1, 1998

      The following deeds and conveyances, recorded in the Registries of Deeds
in the Counties in New Hampshire indicated, contain descriptions of certain
properties acquired in fee simple by the Company since April 1, 1998.

<TABLE>
<CAPTION>
Grantor                       Date           Book/Page      County/Town
<S>                           <C>            <C>            <C>
Wayne W. Wheeler              2/08/2000      2193/1302      Merrimack/Bow
& Katherine B. Wheeler

Bellemore Business            03/09/2000     6216/1230      Hillsborough/Bedford
Park, LLC
</TABLE>

Page 41
<PAGE>
THE STATE OF CONNECTICUT )
COUNTY OF HARTFORD       )    ss.   Berlin

      Then personally appeared before me David R. McHale, Vice President and
Treasurer, and O. Kay Comendul, Secretary, of Public Service Company of New
Hampshire, a New Hampshire corporation, and severally acknowledged the foregoing
instrument to be their free act and deed in their said capacities and the free
act and deed of said corporation.

      Witness my hand and notarial seal this ___th day of December, 2001, at
Berlin, Connecticut.

                                     Name:
                                     Notary Public in and for the State
                                     of Connecticut
                                     My Commission Expires:

(Notarial Seal)

THE STATE OF NEW JERSEY  )
COUNTY OF MORRIS         )  ss. Morristown

      Then personally appeared before me Stephanie Roche, Vice President, and
____________, ______________, of First Union National Bank, a national banking
association, and acknowledged the foregoing instrument to be their free act and
deed in their said capacities and the free act and deed of said corporation.

      Witness my hand and notarial seal this __th day of December, 2001, at
Morristown, New Jersey.

                                     Name:
                                     Notary Public in and for the State
                                     of New Jersey
                                     My Commission Expires:

(Notarial Seal)

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<PAGE>
                                   ENDORSEMENT

      First Union National Bank, Trustee, being the mortgagee in the foregoing
Supplemental Indenture, hereby consents to the cutting of any timber standing
upon any of the lands covered by said Supplemental Indenture and to the sale of
any such timber so cut and of any personal property covered by said Supplemental
Indenture to the extent, but only to the extent, that such sale is permitted
under the provisions of the Original Indenture as referred to in, and as amended
by, the Tenth Supplemental Indenture thereto dated as of May 1, 1991, the
Eleventh Supplemental Indenture thereto dated as of April 1, 1998, and the
Twelfth Supplemental Indenture, dated as of December 1, 2001.

FIRST UNION NATIONAL BANK,
as Trustee as aforesaid

By     /s/ Stephanie Roche
       Name:  Stephanie Roche
       Title: Vice President

Signed, sealed and acknowledged
on behalf of First Union National Bank
in the presence of us:

_________________

_________________

Witnesses
CORPORATE SEAL

Page 43

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