Document:

EXHIBIT 4(a)

FIRST SUPPLEMENTAL INDENTURE, dated as of October 13,
2006 (this “First Supplemental Indenture”), between BALTIMORE GAS AND
ELECTRIC COMPANY, a Maryland corporation (the “Issuer”) and DEUTSCHE BANK
TRUST COMPANY AMERICAS,
as trustee (the “Trustee”).

W I T N E S S E T
H

WHEREAS, the Issuer and the Trustee have duly executed
and delivered an Indenture, dated as of July 24, 2006 (the “Indenture”),
providing for the authentication, issuance, delivery and administration of
unsecured debentures, notes or other evidences of indebtedness to be issued in
one or more series by the Issuer (the “Securities”);

WHEREAS, pursuant to the terms of the Indenture, the
Issuer desires to provide for the establishment of new series of Securities
(the “Notes”) to be issued under the Indenture in an unlimited aggregate
principal amount, which may be authenticated and delivered as provided in the
Indenture;

WHEREAS, the Issuer desires to amend the provisions of
the Indenture to issue the Notes under the terms of the Indenture as
supplemented hereby;

WHEREAS, Section 11.01 of the Indenture expressly
permits the Issuer and the Trustee to enter into one or more supplemental
indentures for the purposes, inter alia, of establishing the forms and terms of
Securities to be issued under the Indenture or making certain provisions in the
Indenture which the Issuer deems necessary or desirable, and permits the
execution of such supplemental indentures without the consent of the Holders of
any Securities then outstanding;

WHEREAS, for the purposes hereinabove recited, and
pursuant to due corporate action, the Issuer has duly determined to execute and
deliver to the Trustee this First Supplemental Indenture; and

WHEREAS, all conditions and requirements necessary to
make this First Supplemental Indenture a valid, legal and binding instrument in
accordance with its terms have been done and performed, and the execution and
delivery hereof have been in all respects duly authorized;

NOW, THEREFORE, in consideration of the premises, the
Issuer and the Trustee mutually covenant and agree as follows:

SECTION 1.           DEFINITIONS.

1.1           All
terms contained in this First Supplemental Indenture shall, except as
specifically provided herein or except as the context may otherwise require,
have the meanings given to such terms in the Indenture.

 

1.2           Unless
the context otherwise requires, the following terms shall have the following
meanings:

“Affiliate” of any specified person means any
other person directly or indirectly controlling or controlled by or under
direct or indirect common control with such specified person. For the purposes
of this definition, “control” when used with respect to any specified person
means the power to direct or cause the direction of the management and policies
of such person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and “controlled”
have meanings correlative to the foregoing.

“Applicable Procedures” means, with respect to
any transfer or exchange of or for beneficial interests in any Global Note, the
rules and procedures of the Depositary that apply to such transfer or exchange.

“Depositary” means The Depository Trust Company
or any other depositary from time to time specified pursuant to the Indenture.

“Definitive Note” means a certificated Note
registered in the name of the Holder thereof and issued in accordance with
Section 4 hereof, substantially in the form of Exhibit A or B hereto except
that such Note shall not bear the Global Note Legend and shall not have the “Schedule
of Exchanges of Interests in the Global Note” attached thereto.

“Exchange Notes” has the meaning set forth in
the Registration Rights Agreement.

“Exchange Offer” has the meaning set forth in
the Registration Rights Agreement.

“Exchange Offer Registration Statement” has the
meaning set forth in the Registration Rights Agreement.

“Global Note Legend” means the legend set forth
in Section 4.7(b) which is required to be placed on all Global Notes issued
under this First Supplemental Indenture.

“Global Notes” means, individually and
collectively, each of the Restricted Global Notes and the Unrestricted Global
Notes, substantially in the form of Exhibit A or B hereto that bears the Global
Note Legend and that has the “Schedule of Exchanges of Interests in the Global
Note” attached thereto, issued in accordance with Section 4.2(d), 4.4(b) or 4.6
hereof.

“Indirect Participant” means a person who holds
a beneficial interest in a Global Note through a Participant.

“Initial Purchasers” has the meaning set forth
in the Purchase Agreement dated as of October 11, 2006, by and among the
Issuer, Banc of America Securities LLC, Barclays Capital Inc., Citigroup Global
Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated (as representatives
of the several Initial Purchasers).

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“Letter of Transmittal” means the letter of
transmittal to be prepared by the Issuer and sent to all Holders of the Notes
for use by such Holders in connection with the Exchange Offer.

“Non-U.S. Person” means any person that is not
a U.S. person as defined in Rule 902(o) under the Securities Act.

“Notes” means the 5.90% Notes due 2016 and the 6.35%
Notes due 2036 as those notes are defined in Sections 2.1 and 2.2,
respectively.

“Participant” means a person who has an account
with the Depositary.

“Participating Broker-Dealer” has the meaning
set forth in the Registration Rights Agreement.

“Private Exchange” has the meaning set forth in
the Registration Rights Agreement.

“Private Exchange Notes” has the meaning set
forth in the Registration Rights Agreement.

“Private Placement Legend” means the legend set
forth in Section 4.7(a) to be placed on all Notes issued under this First
Supplemental Indenture except where otherwise permitted by the provisions of
this First Supplemental Indenture.

“QIB” means a “qualified institutional buyer”
as defined in Rule l44A.

“Registrar” means the registrar specified from
time to time pursuant to Section 3.04 of the Indenture.

“Registration Rights Agreement” means each of the
Registration Rights Agreements for the 5.90% Notes and the 6.35% Notes,
respectively, dated as of the date hereof, by and among the Issuer, Banc of
America Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc.
and Merrill Lynch, Pierce, Fenner & Smith Incorporated (as representatives
of the several initial purchasers listed therein), as such agreements may be
amended, modified or supplemented from time to time.

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

“Restricted Definitive Note” means a Definitive
Note bearing the Private Placement Legend.

“Restricted Global Note” means a Global Note
bearing the Private Placement Legend.

“Ru1e 144” means Rule 144 promulgated under the
Securities Act.

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

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

“Shelf Registration Statement” has the meaning
set forth in the Registration Rights Agreement.

“Unrestricted Definitive Note” means one or
more Definitive Notes that do not bear and, pursuant to Section 4.7, are not
required to bear the Private Placement Legend.

“Unrestricted Global Note” means one or more
Global Notes that do not bear and, pursuant to Section 4.7, are not required to
bear the Private Placement Legend.

SECTION 2.           TERMS AND CONDITIONS OF THE SECURITIES.

There is hereby authorized the following series of
Notes:

2.1           5.90%
Notes due 2016.

(a)           A
single series consisting of two tranches of senior unsecured notes
(collectively, the “5.90% Notes due 2016”) are hereby authorized and designated
as the “5.90% Series A Notes due 2016” and the “5.90% Series B Notes due 2016”.

(b)           The
5.90% Notes due 2016 shall initially be limited in aggregate principal amount
to $300,000,000, shall bear interest at a rate of 5.90% per annum (plus
additional interest, if any, pursuant to the applicable Registration Rights
Agreement), shall mature on October 1, 2016, shall be subject to optional
redemption at any time by the Issuer pursuant to the terms set forth in the
form of Note with respect thereto attached as Exhibit A and have such other
terms set forth in such form of Note.

(c)           The
5.90% Series A Notes due 2016 and the 5.90% Series B Notes due 2016 shall be
identical in all material respects except that the (i) 5.90% Series A Notes due
2016 and any 5.90% Series A Notes due 2016 issued in the Private Exchange shall
be issued bearing the Private Placement Legend and (ii) 5.90% Series B Notes due
2016 issued pursuant to the Exchange Offer shall be issued without bearing the
Private Placement Legend.  It is intended
that the 5.90% Series A Notes due 2016 will be exchanged for the 5.90% Series B
Notes due 2016 pursuant to Section 4.6 hereof.

2.2           6.35%
Notes due 2036.

(a)           A
single series consisting of two tranches of senior unsecured notes (collectively,
the “6.35% Notes due 2036”) are hereby authorized and designated as the “6.35%
Series A Notes due 2036” and the “6.35% Series B Notes due 2036”.

(b)           The
6.35% Notes due 2036 shall initially be limited in aggregate principal amount
to $400,000,000, shall bear interest at a rate of 6.35% per annum (plus
additional interest, if any, pursuant to the applicable Registration Rights
Agreement), shall mature on October 1, 2036, shall be subject to optional
redemption at any time by the Issuer pursuant to the terms set forth in the form
of Note with respect thereto attached as Exhibit B and have such other terms
set forth in such form of Note.

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(c)           The
6.35% Series A Notes due 2036 and the 6.35% Series B Notes due 2036 shall be
identical in all material respects except that the (i) 6.35% Series B Notes due
2036 and any 6.35% Series B Notes due 2036 issued in the Private Exchange shall
be issued bearing the Private Placement Legend and (ii) 6.35% Series B Notes due
2036 issued pursuant to the Exchange Offer shall be issued without bearing the
Private Placement Legend.  It is intended
that the 6.35% Series A Notes due 2036 will be exchanged for the 6.35% Series B
Notes due 2036 pursuant to Section 4.6 hereof.

2.3           Issuance
of Additional Securities.  The Issuer shall be permitted
to amend this First Supplemental Indenture in order to increase the aggregate
principal amount of Notes that may be issued hereunder without the consent of
the Holders of Notes so affected.

SECTION 3.           FORM OF NOTES.

3.1           Form
of Global Notes.  The Notes shall be issued in the form of
Global Notes (including the Global Note Legend thereon and the “Schedule of
Exchanges of Interests in the Global Note” attached thereto).  Each Global Note shall represent such of the
outstanding Notes as shall be specified therein and each shall provide that it
shall represent the aggregate principal amount of outstanding Notes from time
to time endorsed thereon and that the aggregate principal amount of outstanding
Notes represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges and redemptions.  Any endorsement of a Global Note to reflect
the amount of any increase or decrease in the aggregate principal amount of
outstanding Notes represented thereby shall be made by the Trustee, as
custodian of the Global Notes, in accordance with instructions given by the
Holder thereof as required by Section 4 hereof.

SECTION 4.           TRANSFER AND EXCHANGE.

Notwithstanding any provisions to the contrary set
forth in Article Two of the Indenture, the following terms and conditions shall
govern the transfer and exchange of the Notes.

4.1           Transfer
and Exchange of Global Notes.  A Global Note
may not be transferred as a whole except by the Depositary to a nominee of the
Depositary, by a nominee of the Depositary to the Depositary or to another
nominee of the Depositary, the Depositary or any such nominee to a successor
Depositary or a nominee of such successor Depositary.  All Global Notes will be exchanged by the
Issuer for Definitive Notes if (i) the Issuer delivers to the Trustee notice
from the Depositary that it is unwilling or unable to continue to act as
Depositary or that it is no longer a clearing agency registered under the
Exchange Act and, in either case, a successor Depositary is not appointed by
the Issuer within 90 days after the date of such notice from the Depositary,
(ii) the Issuer in its sole discretion determines that the Global Notes (in
whole but not in part) should be exchanged for individual Notes and delivers a
written notice to such effect to the Trustee or (iii) an Event of Default shall
have occurred and be continuing with respect to the Notes.  Upon the occurrence of any of the preceding
events in (i), (ii) or (iii) above, Definitive Notes shall be issued in such
names as the Depositary shall instruct the Trustee.  Every Note 

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authenticated and
delivered in exchange for, or in lieu of, a Global Note or any portion thereof,
pursuant to this Section 4 hereof, shall be authenticated and delivered in the
form of, and shall be, a Global Note.  A
Global Note may not be exchanged for another Note other than as provided in
this Section 4, however, beneficial interests in
a Global Note may be transferred and exchanged as provided in Section 4.2, 4.3
or 4.6 hereof.

4.2           Transfer
and Exchange of Beneficial Interests in the Global Notes. 
The transfer and exchange of beneficial interests in the Global Notes
shall be effected through the Depositary, in accordance with the provisions of
the Indenture, as supplemented by this First Supplemental Indenture, and the
Applicable Procedures.  Beneficial
interests in any Restricted Global Note bearing the Private Placement Legend
shall be subject to restrictions on transfer comparable to those set forth
herein to the extent required by the Securities Act.  Transfers of beneficial interests in the
Global Notes also shall require compliance with either subparagraph (a) or (b)
below, as applicable, as well as one or more of the other following subparagraphs,
as applicable:

(a)           Transfer of Beneficial Interests in the Same Global Note. 
Beneficial interests in any Restricted Global Note may be transferred to
persons who take delivery thereof in the form of a beneficial interest in the
same Restricted Global Note in accordance with the transfer restrictions set
forth in the Private Placement Legend. 
Beneficial interests in any Unrestricted Global Note may be transferred
to persons who take delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note.  No written
orders or instructions shall be required to be delivered to the Registrar to
register the transfers described in this Section 4.2(a).

(b)           All Other Transfers and Exchanges of Beneficial Interests in Global
Notes.  In connection with all transfers and
exchanges of beneficial interests that are not subject to Section 4.2(a) above,
the transferor of such beneficial interest must deliver to the Depositary
either (1) (A) a written order from a Participant or an Indirect Participant
given to the Depositary in accordance with the Applicable Procedures directing
the Depositary to credit or cause to be credited a beneficial interest in the
Global Note, or in another Global Note in the case of an exchange, in an amount
equal to the beneficial interest to be transferred or exchanged and (B)
instructions given in accordance with the Applicable Procedures containing
information regarding the Participant account to be credited with such increase
or (2) (A) a written order from a Participant or an Indirect Participant given
to the Depositary in accordance with the Applicable Procedures directing the
Depositary to cause to be issued a Definitive Note in an amount equal to the
beneficial interest to be transferred or exchanged and (B) instructions given
by the Depositary to the Registrar containing information regarding the person
in whose name such Definitive Note shall be registered to effect the transfer
or exchange referred to in (A) above. 
Upon consummation of an Exchange Offer by the Issuer in accordance with
Section 4.6 hereof, the requirements of this Section 4.2(b) shall be deemed to
have been satisfied upon receipt by the Registrar of the instructions contained
in the Letter of Transmittal delivered by the holder of such beneficial
interests in the Restricted Global Notes. 
Upon satisfaction of all of the requirements for transfer or exchange of
beneficial interests in Global Notes contained in the Indenture, as
supplemented by this First Supplemental Indenture, and the Notes or 

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otherwise
applicable under the Securities Act, the Trustee shall adjust the principal
amount of the relevant Global Note(s) pursuant to Section 4.8 hereof.

(c)           Transfer of Beneficial Interests to Another Restricted Global Note. 
A beneficial interest in any Restricted Global Note may be transferred
to a person who takes delivery thereof in the form of a beneficial interest in
another Restricted Global Note if the transfer complies with the requirements
of Section 4.2(b) above and the transferor delivers a certificate in the form
of Exhibit C hereto, including the certifications in item (1) thereof.

(d)           Transfer and Exchange of Beneficial Interests in a Restricted Global
Note for Beneficial Interests in the Unrestricted Global Note. 
A beneficial interest in any Restricted Global Note may be exchanged by any
holder thereof for a beneficial interest in an Unrestricted Global Note or
transferred to a person who takes delivery thereof in the form of a beneficial
interest in an Unrestricted Global Note if the exchange or transfer complies
with the requirements of Section 4.2(b) above and:

(i)            such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights Agreement and the
holder of the beneficial interest to be transferred, in the case of an
exchange, or the transferee, in the case of a transfer, certifies in the
applicable Letter of Transmittal or via the Depositary’s book-entry system that
it is not (A) a broker-dealer, (B) a person participating in the distribution
of the Exchange Notes or (C) a person who is an affiliate (as defined in Rule
144) of the Issuer; or

(ii)           such transfer is effected pursuant to the Shelf
Registration Statement in accordance with the Registration Rights Agreement; or

(iii)          such transfer is effected by a Participating
Broker-Dealer pursuant to the Exchange Offer Registration Statement in
accordance with the Registration Rights Agreement; or

(iv)          the Registrar receives the following:

(A)          if the holder of such
beneficial interest in a Restricted Global Note proposes to exchange such beneficial
interest for a beneficial interest in an Unrestricted Global Note, a
certificate from such holder in the form of Exhibit D hereto, including the
certifications in item (1 )(a) thereof; or

(B)           if the holder of such
beneficial interest in a Restricted Global Note proposes to transfer such
beneficial interest to a person who shall take delivery thereof in the form of
a beneficial interest in an Unrestricted Global Note, a certificate from such
holder in the form of Exhibit C hereto, including the certifications in item
(4) thereof;

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and, in each such case
set forth in this subparagraph (iv), if the Registrar so requests or if the
Applicable Procedures so require, an Opinion of Counsel in form reasonably
acceptable to the Registrar to the effect that such exchange or transfer is in
compliance with the Securities Act and that the restrictions on transfer
contained herein and in the Private Placement Legend are no longer required in
order to maintain compliance with the Securities Act.

If any such transfer is effected pursuant to
subparagraph (ii) or (iv) above at a time when an Unrestricted Global Note has
not yet been issued, the Issuer shall issue and, upon receipt of an Issuer
Order in accordance with Section 2.4 of the Indenture, the Trustee shall authenticate
one or more Unrestricted Global Notes in an aggregate principal amount equal to
the aggregate principal amount of beneficial interests transferred pursuant to
subparagraph (ii) or (iv) above.

Beneficial interests in an Unrestricted Global Note
cannot be exchanged for, or transferred to persons who take delivery thereof in
the form of, a beneficial interest in a Restricted Global Note.

4.3           Transfer
or Exchange of Beneficial Interests for Definitive Notes.

(a)           Beneficial Interests in Restricted Global Notes to Restricted
Definitive Notes.  If any holder of a beneficial interest in a
Restricted Global Note proposes to exchange such beneficial interest for a
Restricted Definitive Note or to transfer such beneficial interest to a person
who takes delivery thereof in the form of a Restricted Definitive Note, then,
upon receipt by the Registrar of the following documentation:

(i)            if the holder of such beneficial interest in a
Restricted Global Note proposes to exchange such beneficial interest for a
Restricted Definitive Note, a certificate from such holder in the form of
Exhibit D hereto, including the certifications in item (2)(a) thereof;

(ii)           if such beneficial interest is being transferred to a
QIB in accordance with Rule l44A, a certificate to the effect set forth in
Exhibit C hereto, including the certifications in item (1) thereof;

(iii)          if such beneficial interest is being transferred to a
Non-U.S. Person in an offshore transaction in accordance with Rule 903 or Rule
904 under the Securities Act, a certificate to the effect set forth in Exhibit C
hereto, including the certifications in item (2) thereof;

(iv)          if such beneficial interest is being transferred
pursuant to an exemption from the registration requirements of the Securities
Act in accordance with Rule 144, a certificate to the effect set forth in
Exhibit C hereto, including the certifications in item (3)(a) thereof;

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(v)           if such beneficial interest is being transferred to
the Issuer or any of its Subsidiaries, a certificate to the effect set forth in
Exhibit C hereto, including the certifications in item (3)(b) thereof; or

(vi)          if such beneficial interest is being transferred
pursuant to an effective registration statement under the Securities Act, a
certificate to the effect set forth in Exhibit C hereto, including the
certifications in item (3)(c) thereof,

the Trustee shall cause
the aggregate principal amount of the applicable Global Note to be reduced
accordingly pursuant to Section 4.8 hereof, and the Issuer shall execute and
the Trustee shall authenticate and deliver to the person designated in the
instructions a Definitive Note in the appropriate principal amount.  Any Definitive Note issued in exchange for a
beneficial interest in a Restricted Global Note pursuant to this Section 4.3(a)
shall be registered in such name or names and in such authorized denomination
or denominations as the holder of such beneficial interest shall instruct the
Registrar through instructions from the Depositary and the Participant or
Indirect Participant.  The Trustee shall
make available for delivery such Definitive Notes to the persons in whose names
such Notes are so registered.  Any
Definitive Note issued in exchange for a beneficial interest in a Restricted
Global Note pursuant to this Section 4.3(a) shall bear the Private Placement
Legend and shall be subject to all restrictions on transfer contained therein.

(b)           Beneficial Interests in Restricted Global Notes to Unrestricted
Definitive Notes.  A holder of a beneficial interest in a
Restricted Global Note may exchange such beneficial interest for an
Unrestricted Definitive Note or may transfer such beneficial interest to a
person who takes delivery thereof in the form of an Unrestricted Definitive
Note only if:

(i)            such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights Agreement and the
holder of such beneficial interest, in the case of an exchange, or the
transferee, in the case of a transfer, certifies in the applicable Letter of
Transmittal that it is not (1) a broker-dealer, (2) a person participating in
the distribution of the Exchange Notes or (3) a person who is an affiliate (as
defined in Rule 144) of the Issuer;

(ii)           such transfer is effected pursuant to the Shelf
Registration Statement in accordance with the Registration Rights Agreement;

(iii)          such transfer is effected by a Participating
Broker-Dealer pursuant to the Exchange Offer Registration Statement in
accordance with the Registration Rights Agreement; or

(iv)          the Registrar receives the following:

(A)          if the holder of such beneficial interest in a
Restricted Global Note proposes to exchange such beneficial interest for a
Definitive Note that does not bear the Private Placement Legend, a certificate
from such holder in the 

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form of Exhibit D
hereto, including the certifications in item (l)(b) thereof; or

(B)           if the holder of such beneficial interest in a
Restricted Global Note proposes to transfer such beneficial interest to a
person who shall take delivery thereof in the form of a Definitive Note that
does not bear the Private Placement Legend, a certificate from such holder in
the form of Exhibit C hereto, including the certifications in item (4) thereof;

and, in each such case
set forth in this subparagraph (iv), if the Registrar so requests or if the
Applicable Procedures so require, an Opinion of Counsel in form reasonably
acceptable to the Registrar to the effect that such exchange or transfer is in
compliance with the Securities Act and that the restrictions on transfer
contained herein and in the Private Placement Legend are no longer required in
order to maintain compliance with the Securities Act.

(c)           Beneficial Interests in Unrestricted Global Notes to Unrestricted
Definitive Notes.  If any holder of a beneficial interest in an
Unrestricted Global Note proposes to exchange such beneficial interest for a
Definitive Note or to transfer such beneficial interest to a person who takes
delivery thereof in the form of a Definitive Note, then, upon satisfaction of
the conditions set forth in Section 4.2(b) hereof, the Trustee shall cause the
aggregate principal amount of the applicable Global Note to be reduced
accordingly pursuant to Section 4.8 hereof, and the Issuer shall execute and
the Trustee shall authenticate and make available for delivery to the person
designated in the instructions a Definitive Note in the appropriate principal
amount.  Any Definitive Note issued in
exchange for a beneficial interest pursuant to this Section 4.3(c) shall be
registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest shall instruct the
Registrar through instructions from the Depositary and the Participant or
Indirect Participant.  The Trustee shall make
available for delivery such Definitive Notes to the persons in whose names such
Notes are so registered.  Any Definitive
Note issued in exchange for a beneficial interest pursuant to this Section
4.3(c) shall not bear the Private Placement Legend.

4.4           Transfer
and Exchange of Definitive Notes for Beneficial Interests.

(a)           Restricted Definitive Notes to Beneficial Interests in Restricted
Global Notes.  If any Holder of a Restricted Definitive Note
proposes to exchange such Note for a beneficial interest in a Restricted Global
Note or to transfer such Restricted Definitive Notes to a person who takes
delivery thereof in the form of a beneficial interest in a Restricted Global
Note, then, upon receipt by the Registrar of the following documentation:

(i)            if the Holder of such Restricted Definitive Note
proposes to exchange such Note for a beneficial interest in a Restricted Global
Note, a certificate from such Holder in the form of Exhibit D hereto, including
the certifications in item (2)(b) thereof;

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(ii)           if such Restricted Definitive Note is being
transferred to a QIB in accordance with Rule l44A, a certificate to the effect
set forth in Exhibit C hereto, including the certifications in item (1)
thereof;

(iii)          if such Restricted Definitive Note is being
transferred to a Non-U.S. Person in an offshore transaction in accordance with
Rule 903 or Rule 904 under the Securities Act, a certificate to the effect set
forth in Exhibit C hereto, including the certifications in item (2) thereof;

(iv)          if such Restricted Definitive Note is being
transferred pursuant to an exemption from the registration requirements of the
Securities Act in accordance with Rule 144, a certificate to the effect set
forth in Exhibit C hereto, including the certifications in item (3)(a) thereof;

(v)           if such Restricted Definitive Note is being
transferred to the Issuer or any of its Subsidiaries, a certificate to the
effect set forth in Exhibit C hereto, including the certifications in item
(3)(b) thereof; or

(vi)          if such Restricted Definitive Note is being
transferred pursuant to an effective registration statement under the
Securities Act, a certificate to the effect set forth in Exhibit C hereto,
including the certifications in item (3)(c) thereof;

the Trustee shall cancel
the Restricted Definitive Note, increase or cause to be increased the aggregate
principal amount of the appropriate Restricted Global Note.

(b)           Restricted Definitive Notes to Beneficial Interests in Unrestricted
Global Notes.  A Holder of a Restricted Definitive Note may
exchange such Note for a beneficial interest in an Unrestricted Global Note or
transfer such Restricted Definitive Note to a person who takes delivery thereof
in the form of a beneficial interest in an Unrestricted Global Note only if:

(i)            such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights Agreement and the
Holder, in the case of an exchange, or the transferee, in the case of a
transfer, certifies in the applicable Letter of Transmittal that it is not (1)
a broker-dealer, (2) a person participating in the distribution of the Exchange
Notes or (3) a person who is an affiliate (as defined in Rule 144) of the
Issuer;

(ii)           such transfer is effected pursuant to the Shelf
Registration Statement in accordance with the Registration Rights Agreement;

(iii)          such transfer is effected by a Participating
Broker-Dealer pursuant to the Exchange Offer Registration Statement in
accordance with the Registration Rights Agreement; or

(iv)          the Registrar receives the following:

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(A)          if the Holder of such Definitive Notes proposes to
exchange such Notes for a beneficial interest in the Unrestricted Global Note,
a certificate from such Holder in the form of Exhibit D hereto, including the
certifications in item (1)(c) thereof; or

(B)           if the Holder of such Definitive Notes proposes to
transfer such Notes to a person who shall take delivery thereof in the form of
a beneficial interest in the Unrestricted Global Note, a certificate from such
Holder in the form of Exhibit C hereto, including the certifications in item (4)
thereof;

and, in each such case
set forth in this subparagraph (iv), if the Registrar so requests or if the
Applicable Procedures so require, an Opinion of Counsel in form reasonably
acceptable to the Registrar to the effect that such exchange or transfer is in
compliance with the Securities Act and that the restrictions on transfer
contained herein and in the Private Placement Legend are no longer required in
order to maintain compliance with the Securities Act.

Upon satisfaction of the conditions of any of the
subparagraphs in this Section 4.4(b), the Trustee shall cancel the Definitive
Notes and increase or cause to be increased the aggregate principal amount of
the Unrestricted Global Note.

(c)           Unrestricted Definitive Notes to Beneficial Interests in Unrestricted
Global Notes.  A Holder of an Unrestricted Definitive Note
may exchange such Note for a beneficial interest in an Unrestricted Global Note
or transfer such Definitive Notes to a person who takes delivery thereof in the
form of a beneficial interest in an Unrestricted Global Note at any time.  Upon receipt of a request for such an
exchange or registration of transfer, the Trustee shall cancel the applicable
Unrestricted Definitive Note and increase or cause to be increased the
aggregate principal amount of one of the Unrestricted Global Notes.

If any such exchange or registration of transfer from
a Definitive Note to a beneficial interest in a Global Note is effected
pursuant to subparagraphs (b)(ii), (b)(iv) or (c) above at a time when an
Unrestricted Global Note has not yet been issued, the Issuer shall issue and,
upon receipt of an Issuer Order in accordance with Section 2.4 of the
Indenture, the Trustee shall authenticate one or more Unrestricted Global Notes
in an aggregate principal amount equal to the principal amount of Definitive
Notes so transferred.

4.5           Transfer
and Exchange of Definitive Notes for Definitive Notes. 
Upon request by a Holder of Definitive Notes and such Holder’s
compliance with the provisions of this Section 4.5, the Registrar shall
register the transfer or exchange of Definitive Notes.  Prior to such registration of transfer or
exchange, the requesting Holder shall present or surrender to the Registrar the
Definitive Notes duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by such Holder or
by his attorney, duly authorized in writing. 
In addition, the requesting Holder shall provide 

 12
 

 

any additional
certifications, documents and information, as applicable, required pursuant to
the following provisions of this Section 4.5.

(a)           Restricted Definitive Notes to Restricted Definitive Notes. 
Any Restricted Definitive Note may be transferred to and registered in
the name of persons who take delivery thereof in the form of a Restricted
Definitive Note if the Registrar receives the following:

(i)            if the transfer will be made pursuant to Rule l44A,
then the transferor must deliver a certificate in the form of Exhibit C hereto,
including the certifications in item (1) thereof; and

(ii)           if the transfer will be made pursuant to Rule 903 or
Rule 904 under the Securities Act, then the transferor must deliver a
certificate in the form of Exhibit C hereto, including the certifications in
item (2) thereof;

(iii)          if the transfer will be made pursuant to any other
exemption from the registration requirements of the Securities Act, then the
transferor must deliver a certificate in the form of Exhibit C hereto,
including the certifications, certificates and Opinion of Counsel required by
item (3) thereof, if applicable.

(b)           Restricted Definitive Notes to Unrestricted Definitive Notes. 
Any Restricted Definitive Note may be exchanged by the Holder thereof
for an Unrestricted Definitive Note or transferred to a person or persons who take
delivery thereof in the form of an Unrestricted Definitive Note if:

(i)            such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights Agreement and the
Holder, in the case of an exchange, or the transferee, in the case of a
transfer, certifies in the applicable Letter of Transmittal that it is not (1)
a broker-dealer, (2) a person participating in the distribution of the Exchange
Notes or (3) a person who is an affiliate (as defined in Rule 144) of the Issuer;

(ii)           any such transfer is effected pursuant to the Shelf
Registration Statement in accordance with the Registration Rights Agreement;

(iii)          any such transfer is effected by a Participating
Broker-Dealer pursuant to the Exchange Offer Registration Statement in
accordance with the Registration Rights Agreement; or

(iv)          the Registrar receives the following:

(A)          if the Holder of such Restricted Definitive Notes
proposes to exchange such Notes for an Unrestricted Definitive Note, a
certificate from such Holder in the form of Exhibit D hereto, including the
certifications in item (1)(d) thereof; or

 13
 

 

(B)           if the Holder of such Restricted Definitive Notes
proposes to transfer such Notes to a person who shall take delivery thereof in
the form of an Unrestricted Definitive Note, a certificate from such Holder in
the form of Exhibit C hereto, including the certifications in item (4) thereof;

and, in each such case
set forth in this subparagraph (iv), if the Registrar so requests, an Opinion
of Counsel in form reasonably acceptable to the Issuer to the effect that such
exchange or transfer is in compliance with the Securities Act and that the
restrictions on transfer contained herein and in the Private Placement Legend
are no longer required in order to maintain compliance with the Securities Act.

(c)           Unrestricted Definitive Notes to Unrestricted Definitive Notes. 
A Holder of Unrestricted Definitive Notes may transfer such Notes to a
person who takes delivery thereof in the form of an Unrestricted Definitive
Note.  Upon receipt of a request to
register such a transfer, the Registrar shall register the Unrestricted
Definitive Notes pursuant to the instructions from the Holder thereof.

4.6           Exchange
Offer.  Upon the occurrence of the Exchange Offer in
accordance with the Registration Rights Agreement, the Issuer shall issue and,
upon receipt of an Issuer Order in accordance with Section 2.4 of the
Indenture, the Trustee shall authenticate (i) one or more Unrestricted Global
Notes in an aggregate principal amount equal to the principal amount of the
beneficial interests in the Restricted Global Notes tendered for acceptance by
persons that certify in the applicable Letters of Transmittal or via the
Depositary’s book-entry system that (x) they are not broker-dealers, (y) they
are not participating in a distribution of the Exchange Notes and (z) they are
not affiliates (as defined in Rule 144) of the Issuer, and accepted for
exchange in the Exchange Offer and (ii) Definitive Notes in an aggregate
principal amount equal to the principal amount of the Restricted Definitive
Notes accepted for exchange in the Exchange Offer.  In addition, if pursuant to the Registration
Rights Agreement, any Holder is entitled to receive Private Exchange Notes
simultaneously with the consummation of the Exchange Offer and so requests, the
Issuer shall issue and, upon receipt of an Issuer Order in accordance with
Section 2.4 of the Indenture, the Trustee shall authenticate (i) one or more
Restricted Global Notes that are identical in all material respects to the
Exchange Notes, except for the Private Placement Legend, in an aggregate
principal amount equal to the principal amount of the beneficial interests in
the Restricted Global Notes accepted for exchange in the Private Exchange and
(ii) Restricted Definitive Notes that are identical in all material respects to
the Exchange Notes, except for the Private Placement Legend, in an aggregate
principal amount equal to the principal amount of the Restricted Definitive
Notes accepted for exchange in the Private Exchange.  Concurrently with the issuance of such Notes,
the Trustee shall cause the aggregate principal amount of the applicable
Restricted Global Notes to be reduced accordingly, and the Issuer shall execute
and the Trustee shall authenticate and make available for delivery to the
persons designated by the Holders of Definitive Notes so accepted Definitive
Notes in the appropriate principal amount.

4.7           Legends. 
The following legends shall appear on the face of all Global Notes and
Definitive Notes issued under this First Supplemental Indenture unless
specifically stated otherwise in the applicable provisions hereof:

 14
 

 

(a)           Private Placement Legend.  Except as
permitted by subparagraph (b) below, each Global Note and each Definitive Note
(and all Notes issued in exchange therefor or substitution thereof) shall bear
the legend in substantially the following form:

“THE HOLDER OF
THIS SECURITY BY ITS ACCEPTANCE HEREOF IS DEEMED TO HAVE AGREED TO BE BOUND BY
THE PROVISIONS OF A REGISTRATION RIGHTS AGREEMENT AMONG BALTIMORE GAS AND
ELECTRIC COMPANY AND THE INITIAL PURCHASERS, DATED OCTOBER 13, 2006 (THE “REGISTRATION
RIGHTS AGREEMENT”).  WE WILL PROVIDE
A COPY OF THE REGISTRATION RIGHTS AGREEMENT TO A HOLDER WITHOUT CHARGE UPON
WRITTEN REQUEST TO US AT OUR PRINCIPAL PLACE OF BUSINESS.

THIS SECURITY HAS
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAWS. 
NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE
REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.

THE HOLDER OF THIS
SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES TO OFFER, SELL OR OTHERWISE TRANSFER
SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”)
WHICH IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE
LAST DATE ON WHICH BALTIMORE GAS AND ELECTRIC COMPANY (THE “COMPANY”) OR
ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR
OF SUCH SECURITY), ONLY (I) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (II) FOR
SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER
THE SECURITIES ACT (“RULE 144A”), TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE l44A THAT PURCHASES FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHICH NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE l44A, (III) PURSUANT TO
OFFERS AND SALES TO NON U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES
WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, (IV) PURSUANT TO A
REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT, OR (V) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT (INCLUDING UNDER RULE 144 UNDER THE
SECURITIES ACT, IF AVAILABLE), SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT
PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (III) OR (V) TO
REQUIRE THE 

 15
 

 

DELIVERY OF AN
OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH
OF THEM, AND IN EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE
FORM APPEARING ON THE OTHER SIDE OF THIS SECURITY IS COMPLETED AND DELIVERED BY
THE TRANSFEROR TO THE TRUSTEE.”

If Definitive Notes are
issued, each Definitive Note will bear the following additional legend:

“IN CONNECTION
WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT
SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY
REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.”

Notwithstanding the
foregoing, any Global Note or Definitive Note issued pursuant to Sections
4.2(d), 4.3(b), 4.4(b), 4.4(c), 4.5(b), 4.5(c) or 4.6 (and all Notes issued in
exchange therefor or substitution thereof) shall not bear the Private Placement
Legend.

(b)           Global Note Legends.  Each Global
Note shall bear legends in substantially the following form:

“THIS GLOBAL NOTE IS
HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS
NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT
TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE
MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.02 OF
THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART
PURSUANT TO SECTION 4.1 OF THE FIRST SUPPLEMENTAL INDENTURE, (III) THIS GLOBAL
NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 3.07
OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR
DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

UNLESS AND UNTIL
IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY
NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE
DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”) TO THE
COMPANY OR ITS AGENT FOR 

 16
 

 

REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.  OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

4.8           Cancellation
and/or Adjustment of Global Notes.  At such time
as all beneficial interests in a particular Global Note have been exchanged for
Definitive Notes or a particular Global Note has been redeemed, repurchased or
canceled in whole and not in part, each such Global Note shall be returned to
or retained and canceled by the Trustee in accordance with Section 3.07 of the
Indenture.  At any time prior to such
cancellation, if any beneficial interest in a Global Note is exchanged for or
transferred to a person who will take delivery thereof in the form of a
beneficial interest in another Global Note or for Definitive Notes, the
principal amount of Notes represented by such Global Note shall be reduced
accordingly and an endorsement shall be made on such Global Note by the Trustee
or by the Depositary at the direction of the Trustee to reflect such reduction;
and if the beneficial interest is being exchanged for or transferred to a
person who will take delivery thereof in the form of a beneficial interest in
another Global Note, such other Global Note shall be increased accordingly and
an endorsement shall be made on such Global Note by the Trustee or by the
Depositary at the direction of the Trustee to reflect such increase.

SECTION 5.           MISCELLANEOUS.

5.1           Ratification
of Indenture.  The Indenture, as supplemented by this First
Supplemental Indenture, is in all respects ratified and confirmed, and this First
Supplemental Indenture shall be deemed a part of the Indenture in the manner
and to the extent herein and therein provided.

5.2           GOVERNING LAW.  THIS FIRST SUPPLEMENTAL
INDENTURE, EACH NOTE AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS FIRST
SUPPLEMENTAL INDENTURE AND EACH NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

5.3           Counterparts. 
This First Supplemental Indenture may be executed in several
counterparts, each of which shall be an original, and all collectively but one
instrument.

5.4           The
Trustee.  The Trustee shall not be responsible in any
manner whatsoever for or in respect of the validity or sufficiency of this First
Supplemental Indenture or for or in respect of the recitals contained herein,
all of which are made solely by the Issuer.

 17

IN WITNESS WHEREOF, the parties hereto have caused
this First Supplemental Indenture to be executed as of the date first above
written.

	
   

  	
  BALTIMORE GAS AND ELECTRIC

  COMPANY, as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeanne M. Blondia

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jeanne M. Blondia

  
	
   

  	
   

  	
  Title:

  	
  Treasurer and Assistant

  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK TRUST COMPANY

  AMERICAS,

  
	
   

  	
  as Trustee

  
	
   

  	
  By Deutsche Bank National Trust Company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Yana Kalachikova

  	
   

  
	
   

  	
   

  	
  Name: Yana Kalachikova

  
	
   

  	
   

  	
  Title: Assistant Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Contino

  	
   

  
	
   

  	
   

  	
  Name: David Contino

  
	
   

  	
   

  	
  Title: Assistant Vice President

  
					

 

 

EXHIBIT A

[FACE OF 5.90% NOTE DUE 2016]

[Insert
Global Note Legends, if applicable pursuant to the provisions of the 

First Supplemental Indenture]

[Insert
the Private Placement Legend, if applicable pursuant to the provisions of the First
Supplemental Indenture]

	
  No.              

  	
  $                

  
	
   

  	
   

  
	
   

  	
  CUSIP:                  

  

 

BALTIMORE GAS AND ELECTRIC COMPANY

    % [Series A] [Series B] Notes
due       

	
  ORIGINAL ISSUE

  	
  INTEREST PAYMENT

  
	
  DATE:

  	
  DATES: April 1
  and October 1

  
	
   

  	
   

  
	
  INTEREST RATE: 5.90% per annum plus additional
  interest, if any, pursuant to the applicable Registration Rights Agreement
  (as defined below)

  	
   

  

 

MATURITY DATE: October 1,
2016

 

Baltimore Gas and Electric Company, a Maryland
corporation (together with its successors and assigns, the “Issuer”),
for value received, hereby promises to pay to                 ,
or registered assignees, the principal sum of                
on the Maturity Date specified above and to pay interest thereon at the
Interest Rate per annum specified above, semiannually in arrears on each
Interest Payment Date specified above during each year commencing on the
Interest Payment Date next succeeding the Original Issue Date specified above,
and at maturity (or on any redemption or repayment date).

Interest on this Note will accrue from the most recent
Interest Payment Date to which interest has been paid or duly provided for, or,
if no interest has been paid or duly provided for, from the Original Issue
Date, until the principal hereof has been paid or duly made available for
payment (except as provided below).  The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, subject to certain exceptions described herein, be paid to
the person in whose name this Note (or one or more predecessor Notes) is
registered at the close of business on the 15th day of the calendar 

 A-1
 

 

month prior to such
Interest Payment Date (whether or not a Business Day) (each such date a “Record
Date”); provided, however, that interest payable at maturity (or on any
redemption or repayment date) will be payable to the person to whom the
principal hereof shall be payable.  As
used herein, “Business Day” means any day, other than a Saturday or
Sunday, that is neither a legal holiday nor a day on which banking institutions
are authorized or required by law or executive order to close in Baltimore
Maryland or The City of New York.

The holder of this Note is entitled to the benefits of
the applicable Registration Rights Agreement (as defined in the First
Supplemental Indenture dated as of October 13, 2006 to the Indenture).

Payment of the principal of this Note, any premium and
the interest due at maturity (or on any redemption or repayment date) will be
made in immediately available funds upon surrender of this Note at the office
or agency of the Paying Agent, as defined on the reverse hereof, maintained for
that purpose in the Borough of Manhattan, The City of New York, or at such
other paying agency as the Issuer may determine.  Payment of the principal of and premium, if
any, and interest on this Note will be made by U.S. dollar check mailed to the
address of the person entitled thereto as such address shall appear in the Note
register.  A holder of U.S. $10,000,000 or
more in aggregate principal amount of Notes having the same Interest Payment
Date will be entitled to receive payments of interest, other than interest due
at maturity or on any date of redemption or repayment, by wire transfer of
immediately available funds if appropriate wire transfer instructions have been
received by the Paying Agent in writing not less than 15 calendar days prior to
the applicable Interest Payment Date.

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

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

 A-2
 

 

IN WITNESS WHEREOF, the Issuer has caused this Note to
be duly executed under its corporate seal.

DATED:

	
   

  	
  BALTIMORE GAS AND ELECTRIC

  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  ATTEST:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
				

 

TRUSTEE’S
CERTIFICATE

OF AUTHENTICATION

This is one of the Notes referred

to in the within-mentioned Indenture.

	
   

  	
  DEUTSCHE
  BANK TRUST COMPANY

  AMERICAS,

  
	
   

  	
  as Trustee

  
	
   

  	
  By Deutsche Bank National Trust Company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 A-3
 

 

[BACK OF 5.90% NOTE
DUE 2016]

This Note is one of a duly authorized issue of 5.90% Series
[A][B] Notes due 2016 (the “Notes”) of the Issuer.  The Notes are issuable under an indenture,
dated as of July 24, 2006 (as amended by the First Supplemental Indenture dated
as of October 13, 2006, the “Indenture”), each between the Issuer and Deutsche
Bank Trust Company Americas, as Trustee (the “Trustee,” which term
includes any successor trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities of the Issuer,
the Trustee and holders of the Notes and the terms upon which the Notes are,
and are to be, authenticated and delivered. 
The Issuer has appointed Deutsche Bank Trust Company Americas, at its
principal corporate trust office in The City of New York as the paying agent
(the “Paying Agent,” which term includes any additional or successor
Paying Agent appointed by the Issuer) with respect to the Notes.  To the extent not inconsistent herewith, the
terms of the Indenture are hereby incorporated by reference herein.

This Note may be redeemed in whole or in part at the
option of the Issuer upon payment of the redemption price specified below.  If the Issuer exercises the option to redeem
this Note, the redemption price will equal the greater of (i) 100% of the
principal amount of this Note or (ii) the sum, as determined by the Independent
Investment Banker (defined below), of the present value of the principal amount
of this Note and the remaining scheduled payments of interest on this Note from
the redemption date to the Maturity Date, exclusive of interest accrued to the
redemption date (the “Remaining Life”), discounted from the scheduled payment
dates to the redemption date on a semiannual basis (assuming a 360-day year of
30-day months) at the Treasury Yield (defined below) plus 20 basis points, plus
accrued and unpaid interest on the principal amount being redeemed to the date
of redemption.  Notice of redemption
shall be mailed to the registered holders of the Notes designated for
redemption at their addresses as the same shall appear on the Note register not
less than 30 nor more than 60 days prior to the date fixed for redemption,
subject to all the conditions and provisions of the Indenture.  In the event of redemption of this Note in
part only, a new Note or Notes for the amount of the unredeemed portion hereof
shall be issued in the name of the holder hereof upon the cancellation hereof.

If the Issuer fails to deposit the redemption price
with the Trustee on or prior to the redemption date, then notwithstanding any
notice of redemption that has been given as provided in Section 4.04 of the
Indenture, the Notes or portions of Notes with respect to which such notice has
been given shall not become due and payable on the date and at the place or
places stated in such notice.  In
addition, the failure to redeem the Notes shall not constitute a default or
Event of Default pursuant to Section 7.01 of the Indenture.

For purposes of the immediately preceding paragraph,
the following defined terms shall have the meanings specified:

“Independent Investment Banker” means Merrill Lynch,
Pierce Fenner & Smith Incorporated if (1) the Issuer does not appoint
someone else at least 30 days prior to such redemption date or (2) such other
institution appointed by the Issuer is unwilling or unable to calculate the redemption
price.  If Merrill Lynch, Pierce Fenner
& Smith Incorporated is 

 A-4
 

 

unwilling or unable to
calculate the redemption price, then the Trustee shall appoint an independent
investment banking institution of national standing to make the calculation.

“Treasury Yield” means, with respect to any redemption
date, the rate determined by the Independent Investment Banker from the most
recent statistical release published by the Federal Reserve Bank of New York
entitled “H.15(519) Selected Interest Rate” or any successor publication as
follows: (i) if the H.15 Statistical Release gives a weekly average yield for
United States Treasury Notes having a constant maturity that is the same as the
Remaining Life of the Notes, then the Treasury Yield will equal that weekly
average yield and (ii) in all other cases, the Independent Investment Banker
will calculate the Treasury Yield by interpolating, on a straight line basis,
the weekly average yields from the H.15 Statistical Release on the United
States Treasury Notes having a constant maturity closest to but greater than
the Remaining Life of the Notes and the United States Treasury Notes having a
constant maturity closest to and less than the Remaining Life of the Notes. The
Independent Investment Banker shall round any weekly average yields calculated
by interpolation to the nearest 1/100th of 1% and shall round the percentage up for
any figure of 1/200th of
1% or above. If weekly average yields for United States Treasury Notes are not
available in the H.15 Statistical Release, or anywhere else, the Independent
Investment Banker shall select comparable rates and calculate the Treasury
Yield using such rates.

Interest payments on this Note will include interest
accrued to but excluding the Interest Payment Dates or the Maturity Date (or
any earlier redemption or repayment date), as the case may be.  Interest payments for this Note will be computed
and paid on the basis of a 360-day year of twelve 30-day months.

In the case where the Interest Payment Date or the
Maturity Date (or any redemption or repayment date) does not fall on a Business
Day, payment of interest, premium, if any, or principal otherwise payable on
such date need not be made on such date, but may be made on the next succeeding
Business Day with the same force and effect as if made on the Interest Payment
Date or on the Maturity Date (or any redemption or repayment date), and no
interest on such payment shall accrue for the period from and after the
Interest Payment Date or the Maturity Date (or any redemption or repayment
date) to such next succeeding Business Day.

This Note and all the obligations of the Issuer
hereunder are direct, unsecured obligations of the Issuer and rank without
preference or priority among themselves and pari passu with all other existing
and future unsecured and unsubordinated indebtedness of the Issuer, subject to
certain statutory exceptions in the event of liquidation upon insolvency.

This Note, and any Note or Notes issued upon
registration of transfer or exchange hereof, is issuable only in fully
registered form, without coupons, and is issuable only in denominations of U.S.
$1,000 and any integral multiple of U.S. $1,000 in excess thereof.

The Trustee has been appointed registrar for the
Notes, and the Trustee will maintain at its principal corporate trust office in
The City of New York a register for the registration and transfer of
Notes.  This Note may be transferred at
the aforesaid office of 

 A-5
 

 

the Trustee by
surrendering this Note for cancellation, accompanied by a written instrument of
transfer in form satisfactory to the Trustee and duly executed by the
registered holder hereof in person or by the holder’s attorney duly authorized
in writing, and thereupon the Trustee shall issue in the name of the transferee
or transferees, in exchange herefor, a new Note or Notes having identical terms
and provisions and having a like aggregate principal amount in authorized
denominations, subject to the terms and conditions set forth herein; provided,
however, that the Trustee will not be required (i) to register the
transfer of or exchange any Note that has been called for redemption in whole
or in part, except the unredeemed portion of Notes being redeemed in part, (ii)
to register the transfer of or exchange any Note if the holder thereof has
exercised his right, if any, to require the Issuer to repurchase such Note in
whole or in part, except the portion of such Note not required to be repurchased,
or (iii) to register the transfer of or exchange Notes to the extent and during
the period so provided in the Indenture with respect to the redemption of
Notes.  Notes are exchangeable at said
office for other Notes of other authorized denominations of equal aggregate
principal amount having identical terms and provisions.  All such exchanges and transfers of Notes
will be free of charge, but the Issuer or the Trustee may require payment of a
sum sufficient to cover any tax or other governmental charge in connection
therewith.  All Notes surrendered for
exchange shall be accompanied by a written instrument of transfer in form
satisfactory to the Trustee and executed by the registered holder in person or
by the holder’s attorney duly authorized in writing.  The date of registration of any Note
delivered upon any exchange or transfer of Notes shall be such that no gain or
loss of interest results from such exchange or transfer.

In case any Note shall at any time become mutilated,
defaced or be destroyed, lost or stolen and such Note or evidence of the loss,
theft or destruction thereof (together with the indemnity hereinafter referred
to and such other documents or proof as may be required in the premises) shall
be delivered to the Trustee, a new Note of like tenor will be issued by the
Issuer in exchange for the Note so mutilated or defaced, or in lieu of the Note
so destroyed or lost or stolen, but, in the case of any destroyed or lost or
stolen Note, only upon receipt of evidence satisfactory to the Trustee and the
Issuer that such Note was destroyed or lost or stolen and, if required, upon
receipt also of indemnity satisfactory to each of them.  All expenses and reasonable charges
associated with procuring such indemnity and with the preparation, authentication
and delivery of a new Note shall be borne by the owner of the Note mutilated,
defaced, destroyed, lost or stolen.

So long as this Note shall be outstanding, the Issuer
will cause to be maintained an office or agency for the payment of the
principal of and premium, if any, and interest on this Note as herein provided
in the Borough of Manhattan, The City of New York, and an office or agency in
said Borough of Manhattan for the registration, transfer and exchange as
aforesaid of the Notes.  The Issuer may designate
other agencies for the payment of said principal, premium and interest at such
place or places (subject to applicable laws and regulations) as the Issuer may
decide.  So long as there shall be such
an agency, the Issuer shall keep the Trustee advised of the names and locations
of such agencies, if any are so designated.

With respect to moneys paid by the Issuer and held by
the Trustee or any Paying Agent for payment of the principal of or interest or
premium, if any, on any Notes that 

 A-6
 

 

remain unclaimed at the
end of two years after such principal, interest or premium shall have become
due and payable (whether at maturity or upon call for redemption or otherwise),
(i) the Trustee or such Paying Agent shall notify the holders of such Notes
that such moneys shall be repaid to the Issuer and any person claiming such
moneys shall thereafter look only to the Issuer for payment thereof and (ii)
such moneys shall be so repaid to the Issuer. 
Upon such repayment all liability of the Trustee or such Paying Agent
with respect to such moneys shall thereupon cease, without, however, limiting
in any way any obligation that the Issuer may have to pay the principal of or
interest or premium, if any, on this Note as the same shall become due.

No provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and
unconditional, to pay the principal of, premium, if any, and interest on this
Note at the time, place and rate, and in the coin and currency, herein prescribed
unless otherwise agreed between the Issuer and the registered holder of this
Note.

Prior to due presentment of this Note for registration
of transfer, the Issuer, the Trustee and any agent of the Issuer or the Trustee
may treat the holder in whose name this Note is registered as the owner hereof
for all purposes, whether or not this Note be overdue, and none of the Issuer,
the Trustee or any such agent shall be affected by notice to the contrary.

No recourse under or upon any obligation, covenant or
agreement contained in the Indenture, or in this Note, or because of the
indebtedness evidenced hereby, shall be had against any incorporator, as such,
or against any past, present or future stockholder, officer or director, as
such, of the Issuer or of any successor, either directly or through the Issuer
or any successor, under any rule of law, statute or constitutional provision or
by the enforcement of any assessment or by any legal or equitable proceeding or
otherwise, all such liability being, by the acceptance hereof and as part of
the consideration for the issuance hereof, expressly waived and released.

This Note shall for all purposes be governed by, and
construed in accordance with, the laws of the State of New York.

All terms used in this Note which are defined in the
Indenture and not otherwise defined herein shall have the meanings assigned to
them in the Indenture.

 A-7
 

 

Assignment Form

	
  To assign this Note, fill in
  the form below: (I) or (we) assign and transfer this Note to

  
	
  (Insert assignee’s soc. sec. or tax I.D. no.)

  
	
   

  

 

 

 

 

(Print or type assignee’s
name, address and zip code)

and irrevocably appoint

	
  to transfer this Note on the books of the
  Issuer. The agent may substitute another to act for him.

  
	
   

  

 

Date:

Your Signature:

(Sign exactly as
your name appears on the face of this Note)

Tax Identification
No:

	
  SIGNATURE GUARANTEE:

  
	
   

  
	
   

  

                

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

 A-8
 

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE(1)

The following exchanges of a part of this Global Note
for an interest in another Global Note or for a Definitive Note, or exchanges
of a part of another Global Note or Definitive Note for an interest in this
Global Note, have been made:

	
  Date of

  Exchange

  	
   

  	
  Amount of

  decrease in

  Principal Amount

  of this Global

  Note

  	
   

  	
  Amount of

  increase in

  Principal Amount

  of this Global Note

  	
   

  	
  Principal Amount

  of this Global

  Note following

  such decrease (or

  increase)

  	
   

  	
  Signature of

  authorized officer

  of Trustee

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(1) This should be
included only if the Note is issued in global form.

 A-9

 

EXHIBIT B

[FACE OF 6.35% NOTE DUE 2036]

[Insert
Global Note Legends, if applicable pursuant to the provisions of the 

First Supplemental Indenture]

[Insert
the Private Placement Legend, if applicable pursuant to the provisions of the
First Supplemental Indenture]

 

	
  No.              

  	
  $                

  
	
   

  	
  CUSIP:                

  

 

BALTIMORE GAS AND ELECTRIC COMPANY

    % [Series A] [Series B] Notes
due       

	
  ORIGINAL ISSUE

  	
  INTEREST PAYMENT

  
	
  DATE:

  	
  DATES: April 1 and
  October 1

  
	
   

  	
   

  
	
  INTEREST RATE: 6.35% per annum plus additional
  interest, if any, pursuant to the applicable Registration Rights Agreement
  (as defined below)

  	
   

  

 

MATURITY DATE: October 1, 2036

Baltimore Gas and Electric Company, a Maryland
corporation (together with its successors and assigns, the “Issuer”),
for value received, hereby promises to pay to                 ,
or registered assignees, the principal sum of                
on the Maturity Date specified above and to pay interest thereon at the Interest
Rate per annum specified above, semiannually in arrears on each Interest
Payment Date specified above during each year commencing on the Interest
Payment Date next succeeding the Original Issue Date specified above, and at
maturity (or on any redemption or repayment date).

Interest on this Note will accrue from the most recent
Interest Payment Date to which interest has been paid or duly provided for, or,
if no interest has been paid or duly provided for, from the Original Issue
Date, until the principal hereof has been paid or duly made available for
payment (except as provided below).  The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, subject to certain exceptions described herein, be paid to
the person in whose name this Note (or one or more predecessor Notes) is
registered at the close of business on the 15th day of the calendar 

 B-1
 

 

month prior to such
Interest Payment Date (whether or not a Business Day) (each such date a “Record
Date”); provided, however, that interest payable at maturity (or on any
redemption or repayment date) will be payable to the person to whom the
principal hereof shall be payable.  As
used herein, “Business Day” means any day, other than a Saturday or
Sunday, that is neither a legal holiday nor a day on which banking institutions
are authorized or required by law or executive order to close in Baltimore
Maryland or The City of New York.

The holder of this Note is entitled to the benefits of
the applicable Registration Rights Agreement (as defined in the First
Supplemental Indenture dated as of October 13, 2006 to the Indenture).

Payment of the principal of this Note, any premium and
the interest due at maturity (or on any redemption or repayment date) will be
made in immediately available funds upon surrender of this Note at the office
or agency of the Paying Agent, as defined on the reverse hereof, maintained for
that purpose in the Borough of Manhattan, The City of New York, or at such
other paying agency as the Issuer may determine.  Payment of the principal of and premium, if
any, and interest on this Note will be made by U.S. dollar check mailed to the
address of the person entitled thereto as such address shall appear in the Note
register.  A holder of U.S. $10,000,000
or more in aggregate principal amount of Notes having the same Interest Payment
Date will be entitled to receive payments of interest, other than interest due
at maturity or on any date of redemption or repayment, by wire transfer of
immediately available funds if appropriate wire transfer instructions have been
received by the Paying Agent in writing not less than 15 calendar days prior to
the applicable Interest Payment Date.

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

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

 B-2
 

 

IN WITNESS WHEREOF, the Issuer has caused this Note to
be duly executed under its corporate seal.

DATED:

	
   

  	
  BALTIMORE
  GAS AND ELECTRIC

  
	
   

  	
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  ATTEST:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

TRUSTEE’S
CERTIFICATE

OF AUTHENTICATION

This is one of the Notes referred

to in the within-mentioned Indenture.

	
   

  	
  DEUTSCHE
  BANK TRUST COMPANY

  AMERICAS,

  
	
   

  	
  as Trustee

  
	
   

  	
  By Deutsche Bank National Trust Company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 B-3
 

 

[BACK OF 6.35%
NOTE DUE 2036]

This Note is one of a duly authorized issue of 6.35%%
Series [A][B] Notes due 2036 (the “Notes”) of the Issuer.  The Notes are issuable under an indenture,
dated as of July 24, 2006 (as amended by the First Supplemental Indenture dated
as of October 13, 2006, the “Indenture”), each between the Issuer and
Deutsche Bank Trust Company Americas, as Trustee (the “Trustee,” which
term includes any successor trustee under the Indenture), to which Indenture
and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights, limitations of rights, duties and
immunities of the Issuer, the Trustee and holders of the Notes and the terms
upon which the Notes are, and are to be, authenticated and delivered.  The Issuer has appointed Deutsche Bank Trust
Company Americas, at its principal corporate trust office in The City of New
York as the paying agent (the “Paying Agent,” which term includes any
additional or successor Paying Agent appointed by the Issuer) with respect to
the Notes.  To the extent not
inconsistent herewith, the terms of the Indenture are hereby incorporated by
reference herein.

This Note may be redeemed in whole or in part at the
option of the Issuer upon payment of the redemption price specified below.  If the Issuer exercises the option to redeem
this Note, the redemption price will equal the greater of (i) 100% of the
principal amount of this Note or (ii) the sum, as determined by the Independent
Investment Banker (defined below), of the present value of the principal amount
of this Note and the remaining scheduled payments of interest on this Note from
the redemption date to the Maturity Date, exclusive of interest accrued to the
redemption date (the “Remaining Life”), discounted from the scheduled payment
dates to the redemption date on a semiannual basis (assuming a 360-day year of
30-day months) at the Treasury Yield (defined below) plus 25 basis points, plus
accrued and unpaid interest on the principal amount being redeemed to the date
of redemption.  Notice of redemption
shall be mailed to the registered holders of the Notes designated for
redemption at their addresses as the same shall appear on the Note register not
less than 30 nor more than 60 days prior to the date fixed for redemption,
subject to all the conditions and provisions of the Indenture.  In the event of redemption of this Note in
part only, a new Note or Notes for the amount of the unredeemed portion hereof
shall be issued in the name of the holder hereof upon the cancellation hereof.

If the Issuer fails to deposit the redemption price
with the Trustee on or prior to the redemption date, then notwithstanding any
notice of redemption that has been given as provided in Section 4.04 of the
Indenture, the Notes or portions of Notes with respect to which such notice has
been given shall not become due and payable on the date and at the place or
places stated in such notice.  In
addition, the failure to redeem the Notes shall not constitute a default or
Event of Default pursuant to Section 7.01 of the Indenture.

For purposes of the immediately preceding paragraph,
the following defined terms shall have the meanings specified:

“Independent Investment Banker” means Merrill Lynch,
Pierce Fenner & Smith Incorporated if (1) the Issuer does not appoint
someone else at least 30 days prior to such redemption date or (2) such other
institution appointed by the Issuer is unwilling or unable to calculate the
redemption price.  If Merrill Lynch,
Pierce Fenner & Smith Incorporated is 

 B-4
 

 

unwilling or unable to
calculate the redemption price, then the Trustee shall appoint an independent
investment banking institution of national standing to make the calculation.

“Treasury Yield” means, with respect to any redemption
date, the rate determined by the Independent Investment Banker from the most
recent statistical release published by the Federal Reserve Bank of New York
entitled “H.15(519) Selected Interest Rate” or any successor publication as
follows: (i) if the H.15 Statistical Release gives a weekly average yield for
United States Treasury Notes having a constant maturity that is the same as the
Remaining Life of the Notes, then the Treasury Yield will equal that weekly
average yield and (ii) in all other cases, the Independent Investment Banker
will calculate the Treasury Yield by interpolating, on a straight line basis,
the weekly average yields from the H.15 Statistical Release on the United
States Treasury Notes having a constant maturity closest to but greater than
the Remaining Life of the Notes and the United States Treasury Notes having a
constant maturity closest to and less than the Remaining Life of the Notes. The
Independent Investment Banker shall round any weekly average yields calculated
by interpolation to the nearest 1/100th of 1% and shall round the percentage up for
any figure of 1/200th of
1% or above. If weekly average yields for United States Treasury Notes are not
available in the H.15 Statistical Release, or anywhere else, the Independent
Investment Banker shall select comparable rates and calculate the Treasury
Yield using such rates.

Interest payments on this Note will include interest
accrued to but excluding the Interest Payment Dates or the Maturity Date (or
any earlier redemption or repayment date), as the case may be.  Interest payments for this Note will be computed
and paid on the basis of a 360-day year of twelve 30-day months.

In the case where the Interest Payment Date or the
Maturity Date (or any redemption or repayment date) does not fall on a Business
Day, payment of interest, premium, if any, or principal otherwise payable on
such date need not be made on such date, but may be made on the next succeeding
Business Day with the same force and effect as if made on the Interest Payment
Date or on the Maturity Date (or any redemption or repayment date), and no
interest on such payment shall accrue for the period from and after the
Interest Payment Date or the Maturity Date (or any redemption or repayment
date) to such next succeeding Business Day.

This Note and all the obligations of the Issuer
hereunder are direct, unsecured obligations of the Issuer and rank without
preference or priority among themselves and pari passu with all other existing
and future unsecured and unsubordinated indebtedness of the Issuer, subject to
certain statutory exceptions in the event of liquidation upon insolvency.

This Note, and any Note or Notes issued upon
registration of transfer or exchange hereof, is issuable only in fully
registered form, without coupons, and is issuable only in denominations of U.S.
$1,000 and any integral multiple of U.S. $1,000 in excess thereof.

The Trustee has been appointed registrar for the
Notes, and the Trustee will maintain at its principal corporate trust office in
The City of New York a register for the registration and transfer of
Notes.  This Note may be transferred at
the aforesaid office of 

 B-5
 

 

the Trustee by
surrendering this Note for cancellation, accompanied by a written instrument of
transfer in form satisfactory to the Trustee and duly executed by the
registered holder hereof in person or by the holder’s attorney duly authorized
in writing, and thereupon the Trustee shall issue in the name of the transferee
or transferees, in exchange herefor, a new Note or Notes having identical terms
and provisions and having a like aggregate principal amount in authorized
denominations, subject to the terms and conditions set forth herein; provided,
however, that the Trustee will not be required (i) to register the
transfer of or exchange any Note that has been called for redemption in whole
or in part, except the unredeemed portion of Notes being redeemed in part, (ii)
to register the transfer of or exchange any Note if the holder thereof has
exercised his right, if any, to require the Issuer to repurchase such Note in
whole or in part, except the portion of such Note not required to be repurchased,
or (iii) to register the transfer of or exchange Notes to the extent and during
the period so provided in the Indenture with respect to the redemption of
Notes.  Notes are exchangeable at said
office for other Notes of other authorized denominations of equal aggregate
principal amount having identical terms and provisions.  All such exchanges and transfers of Notes
will be free of charge, but the Issuer or the Trustee may require payment of a
sum sufficient to cover any tax or other governmental charge in connection
therewith.  All Notes surrendered for
exchange shall be accompanied by a written instrument of transfer in form
satisfactory to the Trustee and executed by the registered holder in person or
by the holder’s attorney duly authorized in writing.  The date of registration of any Note delivered
upon any exchange or transfer of Notes shall be such that no gain or loss of
interest results from such exchange or transfer.

In case any Note shall at any time become mutilated,
defaced or be destroyed, lost or stolen and such Note or evidence of the loss,
theft or destruction thereof (together with the indemnity hereinafter referred
to and such other documents or proof as may be required in the premises) shall
be delivered to the Trustee, a new Note of like tenor will be issued by the
Issuer in exchange for the Note so mutilated or defaced, or in lieu of the Note
so destroyed or lost or stolen, but, in the case of any destroyed or lost or
stolen Note, only upon receipt of evidence satisfactory to the Trustee and the
Issuer that such Note was destroyed or lost or stolen and, if required, upon
receipt also of indemnity satisfactory to each of them.  All expenses and reasonable charges
associated with procuring such indemnity and with the preparation, authentication
and delivery of a new Note shall be borne by the owner of the Note mutilated,
defaced, destroyed, lost or stolen.

So long as this Note shall be outstanding, the Issuer
will cause to be maintained an office or agency for the payment of the
principal of and premium, if any, and interest on this Note as herein provided
in the Borough of Manhattan, The City of New York, and an office or agency in
said Borough of Manhattan for the registration, transfer and exchange as
aforesaid of the Notes.  The Issuer may
designate other agencies for the payment of said principal, premium and
interest at such place or places (subject to applicable laws and regulations)
as the Issuer may decide.  So long as
there shall be such an agency, the Issuer shall keep the Trustee advised of the
names and locations of such agencies, if any are so designated.

With respect to moneys paid by the Issuer and held by
the Trustee or any Paying Agent for payment of the principal of or interest or
premium, if any, on any Notes that 

 B-6
 

 

remain unclaimed at the
end of two years after such principal, interest or premium shall have become
due and payable (whether at maturity or upon call for redemption or otherwise),
(i) the Trustee or such Paying Agent shall notify the holders of such Notes
that such moneys shall be repaid to the Issuer and any person claiming such
moneys shall thereafter look only to the Issuer for payment thereof and (ii)
such moneys shall be so repaid to the Issuer. 
Upon such repayment all liability of the Trustee or such Paying Agent
with respect to such moneys shall thereupon cease, without, however, limiting
in any way any obligation that the Issuer may have to pay the principal of or
interest or premium, if any, on this Note as the same shall become due.

No provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and
unconditional, to pay the principal of, premium, if any, and interest on this
Note at the time, place and rate, and in the coin and currency, herein prescribed
unless otherwise agreed between the Issuer and the registered holder of this
Note.

Prior to due presentment of this Note for registration
of transfer, the Issuer, the Trustee and any agent of the Issuer or the Trustee
may treat the holder in whose name this Note is registered as the owner hereof
for all purposes, whether or not this Note be overdue, and none of the Issuer,
the Trustee or any such agent shall be affected by notice to the contrary.

No recourse under or upon any obligation, covenant or
agreement contained in the Indenture, or in this Note, or because of the
indebtedness evidenced hereby, shall be had against any incorporator, as such,
or against any past, present or future stockholder, officer or director, as
such, of the Issuer or of any successor, either directly or through the Issuer
or any successor, under any rule of law, statute or constitutional provision or
by the enforcement of any assessment or by any legal or equitable proceeding or
otherwise, all such liability being, by the acceptance hereof and as part of
the consideration for the issuance hereof, expressly waived and released.

This Note shall for all purposes be governed by, and
construed in accordance with, the laws of the State of New York.

All terms used in this Note which are defined in the
Indenture and not otherwise defined herein shall have the meanings assigned to
them in the Indenture.

 B-7
 

 

Assignment Form

	
  To assign this Note, fill in
  the form below:  (I) or (we) assign and
  transfer this Note to

  
	
  (Insert assignee’s soc. sec. or tax I.D. no.)

  
	
   

  

 

 

 

 

(Print or type assignee’s
name, address and zip code)

and irrevocably appoint

	
  to transfer this Note on the books of the
  Issuer.  The agent may substitute
  another to act for him.

  

 

Date:

Your Signature:

(Sign exactly as
your name appears on the face of this Note)

Tax Identification
No:

	
  SIGNATURE GUARANTEE:

  
	
   

  
	
   

  

 

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

 B-8
 

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE(2)

The following exchanges of a part of this Global Note
for an interest in another Global Note or for a Definitive Note, or exchanges
of a part of another Global Note or Definitive Note for an interest in this
Global Note, have been made:

	
  Date of

  Exchange

  	
   

  	
  Amount of

  decrease in

  Principal Amount

  of this Global

  Note

  	
   

  	
  Amount of

  increase in

  Principal Amount

  of this Global Note

  	
   

  	
  Principal Amount

  of this Global

  Note following

  such decrease (or

  increase)

  	
   

  	
  Signature of

  authorized officer

  of Trustee

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

(2) This should be included only if the Note is issued
in global form.

 B-9

EXHIBIT C

[FORM OF CERTIFICATE OF TRANSFER]

Baltimore Gas and Electric Company

750 East Pratt Street

Baltimore, MD 21202

Attention:              Secretary
of the Company

Deutsche Bank Trust Company Americas

60 Wall Street, 27th Floor

New York, NY 10005

Attention: Trust and Securities Services

Re:  [    ]% Series [A][B] Notes
due [        ]

Reference
is hereby made to the Indenture, dated as of July 24, 2006, as amended by the First
Supplemental Indenture, dated as of October 13, 2006 (as so amended and
supplemented, the “Indenture”),
between Baltimore Gas and Electric Company, a Maryland corporation, as issuer
(the “Company”), and Deutsche Bank Trust
Company Americas, as trustee. 
Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.

                   ,
(the “Transferor”) owns and proposes to
transfer the Note[s] or interest in such Note[s] specified in Annex A hereto,
in the principal amount of $                   
in such Note[s] or interests (the “Transfer”), to                    
(the “Transferee”), as further specified in
Annex A hereto.  In connection with the
Transfer, the Transferor hereby certifies that:

[CHECK ALL THAT APPLY]

1.                                       o  Check if Transferee will take delivery of a beneficial interest in a
Restricted Global Note or a Restricted Definitive Note Pursuant to Rule 144A.  The Transfer is being effected pursuant to
and in accordance with Rule l44A under the United States Securities Act of
1933, as amended (the “Securities Act”),
and, accordingly, the Transferor hereby further certifies that the beneficial
interest or Restricted Definitive Note is being transferred to a person that
the Transferor reasonably believed and believes is purchasing the beneficial
interest or Restricted Definitive Note for its own account, or for one or more
accounts with respect to which such person exercises sole investment
discretion, and such person and each such account is a “qualified institutional
buyer” within the meaning of Rule 144A in a transaction meeting the
requirements of Rule 144A and such Transfer is in compliance with any
applicable blue sky securities laws of any state of the United States.  Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred beneficial interest
or Restricted Definitive Note

 C-1
 

 

will be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on
the Restricted Global Note and/or the Restricted Definitive Note and in the
Indenture and the Securities Act.

2.                                       o  Check if Transferee will take delivery of a beneficial interest in a
Restricted Global Note or a Restricted Definitive Note Pursuant to Regulation S.  The Transfer is being effected pursuant to
and in accordance with Rule 903 or Rule 904 under the Securities Act and,
accordingly, the Transferor hereby further certifies that (i) the Transfer is
not being made to a person in the United States and (x) at the time the buy
order was originated, the Transferee was outside the United States or such
Transferor and any person acting on its behalf reasonably believed and believes
that the Transferee was outside the United States or (y) the transaction was
executed in, on or through the facilities of a designated offshore securities
market and neither such Transferor nor any person acting on its behalf knows
that the transaction was prearranged with a buyer in the United States, (ii) no
directed selling efforts have been made in contravention of the requirements of
Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act and (iii)
the transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act.  Upon
consummation of the proposed transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Restricted Definitive Note
will be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Global Note and/or the Restricted
Definitive Note and in the Indenture and the Securities Act.

3.                                       o  Check and complete if Transferee will take delivery of a beneficial
interest in a Definitive Note pursuant to any provision of the Securities Act
other than Rule 144A or Regulation S.  The Transfer is being effected in compliance
with the transfer restrictions applicable to beneficial interests in Restricted
Global Notes and Restricted Definitive Notes and pursuant to and in accordance
with the Securities Act and any applicable blue sky securities laws of any
state of the United States, and accordingly the Transferor hereby further
certifies that (check one):

(a)           o 
such Transfer is being effected pursuant to and in accordance with Rule
144 under the Securities Act;

or

(b)           o 
such Transfer is being effected to the Company or a subsidiary thereof;

or

 C-2
 

 

(c)           o 
such Transfer is being effected pursuant to an effective registration
statement under the Securities Act and in compliance with the prospectus
delivery requirements of the Securities Act.

4.                                       o  Check if Transferee will take delivery of a beneficial interest in an
Unrestricted Global Note or of an Unrestricted Definitive Note.

(a)           o  Check if Transfer is pursuant to Rule 144.  (i) The Transfer is being effected pursuant
to and in accordance with Rule 144 under the Securities Act and in compliance
with the transfer restrictions contained in the Indenture and any applicable
blue sky securities laws of any state of the United States and (ii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities
Act.  Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will no longer be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on
the Restricted Global Notes, on Restricted Definitive Notes and in the
Indenture.

(b)           o  Check if Transfer is Pursuant to Regulation S.  (i) The Transfer is being effected pursuant
to and in accordance with Rule 903 or Rule 904 under the Securities Act and in
compliance with the transfer restrictions contained in the Indenture and any
applicable blue sky securities laws of any state of the United States and (ii)
the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act.  Upon consummation of the
proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will no longer be subject to
the restrictions on transfer enumerated in the Private Placement Legend printed
on the Restricted Global Notes, on Restricted Definitive Notes and in the
Indenture.

(c)           o  Check if Transfer is Pursuant to Other Exemption.  (i) The Transfer is being effected pursuant
to and in compliance with an exemption from the registration requirements of
the Securities Act other than Rule 144, Rule 903 or Rule 904 and in compliance
with the transfer restrictions contained in the Indenture and any applicable
blue sky securities laws of any State of the United States and (ii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities
Act.  Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will not be subject to the restrictions
on transfer enumerated in the Private Placement Legend printed on the
Restricted Global Notes or Restricted Definitive Notes and in the Indenture.

This
certificate and the statements contained herein are made for your benefit and
the benefit of the Company.

 C-3
 

 

 

	
   

  	
   

  	
   

  
	
  

  	
    [Insert
  Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  	
   

  
								

 

 C-4
 

 

ANNEX A TO
CERTIFICATE OF TRANSFER

1.             The Transferor owns and proposes to transfer the
following:

[CHECK ONE OF (a) OR (b)]

(a)           o  a
beneficial interest in the Restricted Global Note; or

(b)           o  a
Restricted Definitive Note.

2.             After the Transfer the Transferee will hold:

[CHECK ONE]

(a)           o  a
beneficial interest in the:

(i)            o 
Restricted Global Note (CUSIP             ),
or

(ii)           o 
Unrestricted Global Note (CUSIP             );
or

(b)           o 
Restricted Definitive Note; or

(c)           o 
an Unrestricted Definitive Note,

in
accordance with the terms of the Indenture.

 C-5

EXHIBIT D

[FORM OF CERTIFICATE OF EXCHANGE]

Baltimore Gas and Electric Company

750 East Pratt Street

Baltimore, MD 21202

Attention:              Secretary
of the Company

Deutsche Bank Trust Company Americas

60 Wall Street, 27th Floor

New York, NY 10005

Attention: Trust and Securities Services

Re: [    ]%
Series [A][B] Notes due [            ]

Reference
is hereby made to the Indenture, dated as of July 24, 2006, as amended by the First
Supplemental Indenture, dated as of October 13, 2006 (as so amended and
supplemented, the “Indenture”),
between Baltimore Gas and Electric Company, a Maryland corporation, as issuer
(the “Company”), and Deutsche Bank Trust
Company Americas, as trustee. 
Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.

                       ,
(the “Owner”) owns and proposes to exchange
the Note[s] or interest in such Note[s] specified herein, in the principal
amount of $                       
in such Note[s] or interests (the “Exchange”).  In connection with the Exchange, the Owner
hereby certifies that:

1.                                      Exchange of Restricted
Definitive Notes or Beneficial Interests in a Restricted Global Note for
Unrestricted Definitive Notes or Beneficial Interests in an Unrestricted Global
Note.

(a)           o  Check if Exchange is from beneficial interest in a Restricted Global
Note to beneficial interest in an Unrestricted Global Note.  In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Note for a beneficial interest in an
Unrestricted Global Note in an equal principal amount, the Owner hereby
certifies (i) the beneficial interest is being acquired for the Owner’s own
account without transfer, (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to the Global Notes and pursuant to
and in accordance with the United States Securities Act of 1933, as amended
(the “Securities Act”), (iii) the restrictions
on transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the
beneficial interest in an Unrestricted Global Note is being acquired in
compliance with any applicable blue sky securities laws of any state of the
United States.

(b)           o 
Check if Exchange is from beneficial interest in a Restricted Global
Note to Unrestricted Definitive Note.  In connection
with the Exchange of the Owner’s beneficial interest in a Restricted Global
Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the
Definitive Note is being acquired for the Owner’s own account without transfer,
(ii) such Exchange has been effected in compliance with the transfer
restrictions applicable to the Restricted Global Notes and pursuant to and in
accordance with the Securities Act, (iii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in
order to maintain compliance with

 D-1
 

 

the Securities Act and (iv) the Definitive Note is
being acquired in compliance with any applicable blue sky securities laws of
any state of the United States.

(c)           o 
Check if Exchange is from Restricted Definitive Note to beneficial
interest in an Unrestricted Global Note.  In connection
with the Owner’s Exchange of a Restricted Definitive Note for a beneficial
interest in an Unrestricted Global Note, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without
transfer, (ii) such Exchange has been effected in compliance with the transfer
restrictions applicable to Restricted Definitive Notes and pursuant to and in
accordance with the Securities Act, (iii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in
order to maintain compliance with the Securities Act and (iv) the beneficial
interest is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

(d)           o 
Check if Exchange is from Restricted Definitive Note to Unrestricted
Definitive Note.  In connection with the Owner’s Exchange of a
Restricted Definitive Note for an Unrestricted Definitive Note, the Owner
hereby certifies (i) the Unrestricted Definitive Note is being acquired for the
Owner’s own account without transfer, (ii) such Exchange has been effected in
compliance with the transfer restrictions applicable to Restricted Definitive Notes
and pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act
and (iv) the Unrestricted Definitive Note is being acquired in compliance with
any applicable blue sky securities laws of any state of the United States.

2.                                      Exchange of Restricted
Definitive Notes or Beneficial Interests in Restricted Global Notes for
Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes.

(a)           o  Check if Exchange is from beneficial interest in a Restricted Global
Note to Restricted Definitive Note. 
In connection with the Exchange of the Owner’s beneficial interest in a
Restricted Global Note for a Restricted Definitive Note with an equal principal
amount, the Owner hereby certifies that the Restricted Definitive Note is being
acquired for the Owner’s own account without transfer.  Upon consummation of the proposed Exchange in
accordance with the terms of the Indenture, the Restricted Definitive Note
issued will continue to be subject to the restrictions on transfer enumerated
in the Private Placement Legend printed on the Restricted Definitive Note and
in the Indenture and the Securities Act.

(b)           o 
Check if Exchange is from Restricted Definitive Note to beneficial
interest in a Restricted Global Note.  In connection
with the Exchange of the Owner’s Restricted Definitive Note for a beneficial
interest in the Restricted Global Note, the Owner hereby certifies (1) the
beneficial interest is being acquired for the Owner’s own account without
transfer and (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to the Restricted Global Notes and pursuant to
and in accordance with the Securities Act, and in compliance with any
applicable blue sky securities laws of any state of the United States.  Upon consummation of the proposed Exchange in
accordance with the terms of the Indenture, the beneficial interest issued will
be subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the relevant Restricted Global Note and in the Indenture and
the Securities Act.

 D-2
 

 

This
certificate and the statements contained herein are made for your benefit and
the benefit of the Company.

	
   

  	
   

  	
   

  
	
  

  	
  [Insert Name of Owner]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  	
   

  
								

 

 D-3EXHIBIT
4(b)

 

Registration
Rights Agreement

Dated As
of October 13, 2006

among

Baltimore
Gas and Electric Company

and

Banc of
America Securities LLC,

Barclays
Capital Inc.,

Citigroup
Global Markets Inc.,

and

Merrill
Lynch, Pierce, Fenner & Smith

Incorporated

 

 

REGISTRATION
RIGHTS AGREEMENT

This Registration
Rights Agreement (the “Agreement”) is made and entered into this 13th day of October, 2006, among Baltimore Gas and
Electric Company, a Maryland corporation (the “Company”), and Banc of America
Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc. and
Merrill Lynch, Pierce, Fenner & Smith Incorporated (the “Representatives”) and
the other initial purchasers (collectively, the “Initial Purchasers”) named in
Schedule A to the purchase agreement dated October 11, 2006, among the Company
and the Initial Purchasers (the “Purchase Agreement”), which provides for the
sale by the Company to the Initial Purchasers of an aggregate of $300,000,000 million
principal amount of the Company’s 5.90% Notes due 2016 (the “Securities”).

This Agreement is
made pursuant to the Purchase Agreement,. 
In order to induce the Initial Purchasers to enter into the Purchase
Agreement, the Company has agreed to provide to the Initial Purchasers and
their direct and indirect transferees the registration rights set forth in this
Agreement.  The execution of this
Agreement is a condition to the closing under the Purchase Agreement.

In consideration
of the foregoing, the parties hereto agree as follows:

1.          Definitions.

As used in this
Agreement, the following capitalized defined terms shall have the following
meanings:

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

“1934 Act”
shall mean the Securities Exchange Act of l934, as amended from time to time.

“Closing Date”
shall mean the Closing Date as defined in the Purchase Agreement.

“Company”
shall have the meaning set forth in the preamble and shall also include the
Company’s successors.

“Depositary”
shall mean The Depository Trust Company, or any other depositary appointed by
the Company, provided, however, that such
depositary must have an address in the Borough of Manhattan, in The City of New
York.

 

“Exchange Offer”
shall mean the exchange offer by the Company of Exchange Securities for Registrable
Securities pursuant to Section 2.1 hereof.

“Exchange Offer Registration”
shall mean a registration under the 1933 Act effected pursuant to Section 2.1
hereof.

“Exchange Offer Registration Statement”
shall mean an exchange offer registration statement on Form S-4 (or, if
applicable, on another appropriate form), and all amendments and supplements to
such registration statement, including the Prospectus contained therein, all
exhibits thereto and all documents incorporated by reference therein.

“Exchange
Period” shall have the meaning set forth in Section 2.1 hereof.

“Exchange Securities”
shall mean the 5.90% Notes due 2016 issued by the Company under the
Indenture containing terms identical to the Securities in all material respects
(except for references to certain interest rate provisions, restrictions on
transfers and restrictive legends), to be offered to Holders of Securities in
exchange for Registrable Securities pursuant to the Exchange Offer.

“Holder”
shall mean an Initial Purchaser, for so long as it owns any Registrable
Securities, and each of its successors, assigns and direct and indirect
transferees who become registered owners of Registrable Securities under the
Indenture and each Participating Broker-Dealer that holds Exchange Securities for
so long as such Participating Broker-Dealer is required to deliver a prospectus
meeting the requirements of the 1933 Act in connection with any resale of such
Exchange Securities.

“Indenture”
shall mean the Indenture relating to the Securities, dated as of July 24, 2006,
between the Company and Deutsche Bank Trust Company Americas, as trustee, as
supplemented by a supplemental indenture dated as of October 13, 2006 between
the Company and the Trustee and as the same may be further amended,
supplemented, waived or otherwise modified from time to time in accordance with
the terms thereof.

“Initial Purchaser”
or “Initial Purchasers” shall have the meaning set forth in the
preamble.

“Majority Holders”
shall mean the Holders of a majority of the aggregate principal amount of
Outstanding (as defined in the Indenture) Registrable 

 

Securities;  provided that whenever the consent or
approval of Holders of a specified percentage of Registrable Securities is
required hereunder, Registrable Securities held by the Company and other
obligors on the Securities or any Affiliate (as defined in the Indenture) of
the Company shall be disregarded in determining whether such consent or
approval was given by the Holders of such required percentage amount.

“Participating Broker-Dealer”
shall mean any of Banc of America Securities LLC, Barclays Capital Inc.,
Citigroup Global Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith
Incorporated and any other broker-dealer which makes a market in the Securities
and exchanges Registrable Securities in the Exchange Offer for Exchange
Securities.

“Person”
shall mean an individual, partnership (general or limited), corporation,
limited liability company, trust or unincorporated organization, or a
government or agency or political subdivision thereof.

“Private
Exchange” shall have the meaning set forth in Section 2.1 hereof.

“Private
Exchange Securities” shall have the meaning set forth in Section 2.1
hereof.

“Prospectus”
shall mean the prospectus included in a Registration Statement, including any
preliminary prospectus, and any such prospectus as amended or supplemented by
any prospectus supplement, including any such prospectus supplement with
respect to the terms of the offering of any portion of the Registrable
Securities covered by a Shelf Registration Statement, and by all other
amendments and supplements to a prospectus, including post-effective
amendments, and in each case including all material incorporated by reference
therein.

“Purchase Agreement”
shall have the meaning set forth in the preamble.

“Registrable Securities”
shall mean the Securities and, if issued, the Private Exchange Securities; provided, however, that the Securities and, if issued, the
Private Exchange Securities, shall cease to be Registrable Securities when (i)
a Registration Statement with respect to such Securities shall have been
declared effective under the 1933 Act and such Securities shall have been
disposed of pursuant to such Registration Statement, (ii) such Securities have
been sold to the public pursuant to Rule l44 (or any similar provision then in
force, but not Rule 144A) under the 1933 Act, (iii) such Securities shall have
ceased to be outstanding 

 

or (iv) the
Exchange Offer is consummated (except in the case of Securities purchased from
the Company and continued to be held by the Initial Purchasers).

“Registration Expenses”
shall mean any and all expenses incident to performance of or compliance by the
Company with this Agreement, including without limitation:  (i) all SEC, stock exchange or National
Association of Securities Dealers, Inc. (the “NASD”) registration and filing
fees, including, if applicable, the fees and expenses of any “qualified
independent underwriter” (and its counsel) that is required to be retained by
any holder of Registrable Securities in accordance with the rules and
regulations of the NASD, (ii) all fees and expenses incurred in connection
with compliance with state securities or blue sky laws and compliance with the
rules of the NASD (including reasonable fees and disbursements of counsel for
any underwriters or Holders in connection with blue sky qualification of any of
the Exchange Securities or Registrable Securities and any filings with the
NASD), (iii) all expenses of any Persons in preparing or assisting in
preparing, word processing, printing and distributing any Registration
Statement, any Prospectus, any amendments or supplements thereto, any
underwriting agreements, securities sales agreements and other documents
relating to the performance of and compliance with this Agreement, (iv) all
fees and expenses incurred in connection with the listing, if any, of any of
the Registrable Securities on any securities exchange or exchanges, (v) all
rating agency fees, (vi) the fees and disbursements of counsel for the
Company and of the independent public accountants of the Company, including the
expenses of any special audits or “cold comfort” letters required by or
incident to such performance and compliance, (vii) the fees and expenses
of the Trustee, and any escrow agent or custodian, (viii) the reasonable
fees and expenses of the Initial Purchasers in connection with the Exchange
Offer, including the reasonable fees and expenses of counsel to the Initial
Purchasers in connection therewith, (ix) the reasonable fees and disbursements
of special counsel representing the Holders of Registrable Securities and
(x) any fees and disbursements of the underwriters customarily required to
be paid by issuers or sellers of securities and the fees and expenses of any
special experts retained by the Company in connection with any Registration
Statement, but excluding underwriting discounts and commissions and transfer
taxes, if any, relating to the sale or disposition of Registrable Securities by
a Holder.

“Registration Statement”
shall mean any registration statement of the Company which covers any of the
Exchange Securities or Registrable Securities pursuant to the provisions of
this Agreement, and all amendments and supplements to any such Registration
Statement, including post-effective amendments, in each case including the
Prospectus contained therein, all exhibits thereto and all material
incorporated by reference therein.

 

“SEC” shall
mean the Securities and Exchange Commission or any successor agency or
government body performing the functions currently performed by the United
States Securities and Exchange Commission.

“Shelf Registration”
shall mean a registration effected pursuant to Section 2.2 hereof.

“Shelf Registration Statement”
shall mean a “shelf” registration statement of the Company pursuant to the
provisions of Section 2.2 of this Agreement which covers all of the Registrable
Securities or all of the Private Exchange Securities on an appropriate form
under Rule 415 under the 1933 Act, or any similar rule that may be adopted by
the SEC, and all amendments and supplements to such registration statement,
including post-effective amendments, in each case including the Prospectus
contained therein, all exhibits thereto and all material incorporated by
reference therein.

“Trustee”
shall mean the trustee with respect to the Securities under the Indenture.

2.          Registration Under the 1933 Act.

2.1        Exchange Offer.  The Company shall, for the benefit of the
Holders, at the Company’s cost, (A) prepare and, as soon as practicable
but not later than 210 days following the Closing Date, file with the SEC an
Exchange Offer Registration Statement on an appropriate form under the 1933 Act
with respect to a proposed Exchange Offer and the issuance and delivery to the
Holders, in exchange for the Registrable Securities (other than Private
Exchange Securities), of a like principal amount of Exchange Securities, (B) use
its reasonable best efforts to cause the Exchange Offer Registration Statement
to be declared effective under the 1933 Act within 270 days of the Closing
Date, (C) use its reasonable best efforts to keep the Exchange Offer
Registration Statement effective until the closing of the Exchange Offer and (D) use
its reasonable best efforts to cause the Exchange Offer to be consummated not
later than 315 days following the Closing Date. 
The Exchange Securities will be issued under the Indenture.  Upon the effectiveness of the Exchange Offer
Registration Statement, the Company shall promptly commence the Exchange Offer,
it being the objective of such Exchange Offer to enable each Holder eligible
and electing to exchange Registrable Securities for Exchange Securities
(assuming that such Holder (a) is not an affiliate of the Company within
the meaning of Rule 405 under the 1933 Act, (b) is not a broker-dealer
tendering Registrable Securities acquired directly from the Company for its own
account, (c) acquired the Exchange Securities in the ordinary 

 

course of such Holder’s
business and (d) has no arrangements or understandings with any Person to
participate in the Exchange Offer for the purpose of distributing the Exchange
Securities) to transfer such Exchange Securities from and after their receipt
without any limitations or restrictions under the 1933 Act and under state
securities or blue sky laws.

In connection with
the Exchange Offer, the Company shall:

(a)        mail as promptly as
practicable to each Holder a copy of the Prospectus forming part of the
Exchange Offer Registration Statement, together with an appropriate letter of
transmittal and related documents;

(b)        keep the Exchange Offer
open for acceptance for a period of not less than 30 calendar days after
the date notice thereof is mailed to the Holders (or longer if required by
applicable law) (such period referred to herein as the “Exchange Period”);

(c)        utilize the services of
the Depositary for the Exchange Offer;

(d)        permit Holders to withdraw
tendered Registrable Securities at any time prior to 5:00 p.m. (Eastern Time),
on the last business day of the Exchange Period, by sending to the institution
specified in the notice, a telegram, telex, facsimile transmission or letter
setting forth the name of such Holder, the principal amount of Registrable
Securities delivered for exchange, and a statement that such Holder is
withdrawing such Holder’s election to have such Securities exchanged;

(e)        notify each Holder that
any Registrable Security not tendered will remain outstanding and continue to
accrue interest, but will not retain any rights under this Agreement (except in
the case of the Initial Purchasers and Participating Broker-Dealers as provided
herein); and

(f)         otherwise comply in all
respects with all applicable laws relating to the Exchange Offer.

If, prior to
consummation of the Exchange Offer, the Initial Purchasers hold any Securities
acquired by them and having the status of an unsold allotment in the initial
distribution, the Company upon the request of any Initial Purchaser shall,
simultaneously with the delivery of the Exchange Securities in the Exchange
Offer, issue and deliver to such Initial Purchaser in exchange (the “Private
Exchange”) for the Securities held by such Initial Purchaser, a like principal
amount of debt securities of the Company on a senior basis, that are identical
(except that such securities shall bear 

 

appropriate transfer
restrictions) to the Exchange Securities (the “Private Exchange Securities”).

The Exchange
Securities and the Private Exchange Securities shall be issued under
(i) the Indenture or (ii) an indenture identical in all material
respects to the Indenture and which, in either case, has been qualified under
the Trust Indenture Act of 1939, as amended (the “TIA”), or is exempt from such
qualification and shall provide that the Exchange Securities shall not be
subject to the transfer restrictions set forth in the Indenture but that the
Private Exchange Securities shall be subject to such transfer
restrictions.  The Indenture or such
indenture shall provide that the Exchange Securities, the Private Exchange
Securities and the Securities shall vote and consent together on all matters as
one class and that none of the Exchange Securities, the Private Exchange
Securities or the Securities will have the right to vote or consent as a
separate class on any matter.  The Private
Exchange Securities shall be of the same series as and the Company shall use
reasonable best efforts to have the Private Exchange Securities bear the same
CUSIP number as the Exchange Securities. 
The Company shall not have any liability under this Agreement solely as
a result of such Private Exchange Securities not bearing the same CUSIP number
as the Exchange Securities.

As soon as
practicable after the close of the Exchange Offer and/or the Private Exchange,
as the case may be, the Company shall:

(i)  accept for exchange all Registrable Securities
duly tendered and not validly withdrawn pursuant to the Exchange Offer in
accordance with the terms of the Exchange Offer Registration Statement and the
letter of transmittal which shall be an exhibit thereto;

(ii)  accept for exchange all Securities properly
tendered pursuant to the Private Exchange;

(iii)  deliver to the Trustee for cancellation all
Registrable Securities so accepted for exchange; and

(iv)  cause the Trustee promptly to authenticate
and deliver Exchange Securities or Private Exchange Securities, as the case may
be, to each Holder of Registrable Securities so accepted for exchange in a
principal amount equal to the principal amount of the Registrable Securities of
such Holder so accepted for exchange.

Interest on each
Exchange Security and Private Exchange Security will accrue from the last date
on which interest was paid on the Registrable Securities 

 

surrendered in exchange
therefor or, if no interest has been paid on the Registrable Securities, from
the date of original issuance.  The
Exchange Offer and the Private Exchange shall not be subject to any conditions,
other than (i) that the Exchange Offer or the Private Exchange, or the making
of any exchange by a Holder, does not violate applicable law or any applicable
interpretation of the staff of the SEC, (ii) the due tendering of Registrable
Securities in accordance with the Exchange Offer and the Private Exchange,
(iii) that each Holder of Registrable Securities exchanged in the Exchange
Offer shall have represented that all Exchange Securities to be received by it
shall be acquired in the ordinary course of its business and that at the time
of the consummation of the Exchange Offer it shall have no arrangement or
understanding with any person to participate in the distribution (within the
meaning of the 1933 Act) of the Exchange Securities and shall have made such
other representations as may be reasonably necessary under applicable SEC
rules, regulations or interpretations to render the use of Form S-4 or other
appropriate form under the 1933 Act available and (iv) that no action or
proceeding shall have been instituted or threatened in any court or by or
before any governmental agency with respect to the Exchange Offer or the
Private Exchange which, in the Company’s judgment, would reasonably be expected
to impair the ability of the Company to proceed with the Exchange Offer or the
Private Exchange.  The Company shall
inform the Initial Purchasers of the names and addresses of the Holders to whom
the Exchange Offer is made, and the Initial Purchasers shall have the right to
contact such Holders and otherwise facilitate the tender of Registrable
Securities in the Exchange Offer.

2.2        Shelf Registration.  (i) If, because of any changes in law, SEC
rules or regulations or applicable interpretations thereof by the staff of the
SEC, the Company is not permitted to effect the Exchange Offer as contemplated
by Section 2.1 hereof, (ii) if for any other reason the Exchange Offer
Registration Statement is not filed with the SEC within 210 days of the Closing
Date, or if such Exchange Offer Registration Statement is not declared
effective within 270 days following the original issue of the Registrable
Securities or if the Exchange Offer is not consummated within 315 days after
the original issue of the Registrable Securities, (iii) upon the request
of any of the Initial Purchasers with respect to any Securities not eligible to
be exchanged for the Exchange Securities in the Exchange Offer Registration, (iv)
if a Holder is not permitted to participate in the Exchange Offer or does not
receive fully tradeable Exchange Securities pursuant to the Exchange Offer, and
such Holder so requests, or (v) if the Company so elects, then in case of each
of clauses (i) through (v) the Company shall, at its cost:

(a)        As promptly as
practicable, file with the SEC, and thereafter shall use its reasonable best
efforts to cause to be declared effective as promptly as practicable but no
later than the later of (A) 180 days after 

 

being required or
requested by a Holder to file a Shelf Registration Statement, or (B) 270 days
after the original issue of the Registrable Securities, a Shelf Registration
Statement relating to the offer and sale of the Registrable Securities by the
Holders from time to time in accordance with the methods of distribution
elected by the Majority Holders participating in the Shelf Registration and set
forth in such Shelf Registration Statement.

(b)        Use its reasonable best
efforts to keep the Shelf Registration Statement continuously effective in
order to permit the Prospectus forming part thereof to be usable by Holders for
a period of two years from the date the Shelf Registration Statement is
declared effective by the SEC, or for such shorter period that will terminate
when all Registrable Securities covered by the Shelf Registration Statement
have been sold pursuant to the Shelf Registration Statement or cease to be
outstanding or otherwise to be Registrable Securities (the “Effectiveness
Period”);  provided,
however, that the Effectiveness Period in respect of the Shelf
Registration Statement shall be extended to the extent required to permit
dealers to comply with the applicable prospectus delivery requirements of Rule
174 under the 1933 Act and as otherwise provided herein.

(c)        Notwithstanding any other
provisions hereof, use its reasonable best efforts to ensure that (i) any Shelf
Registration Statement and any amendment thereto and any Prospectus forming
part thereof and any supplement thereto complies in all material respects with
the 1933 Act and the rules and regulations thereunder, (ii) any Shelf
Registration Statement and any amendment thereto does not, when it becomes
effective, contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading and (iii) any Prospectus forming part of any Shelf
Registration Statement, and any supplement to such Prospectus (as amended or
supplemented from time to time), does not include an untrue statement of a
material fact or omit to state a material fact necessary in order to make the
statements, in light of the circumstances under which they were made, not
misleading.

The Company shall
not permit any securities other than Registrable Securities to be included in
the Shelf Registration Statement.  The
Company further agrees, if necessary, to supplement or amend the Shelf
Registration Statement, as required by Section 3(b) below, and to furnish to
the Holders of Registrable Securities 

 

copies of any such
supplement or amendment promptly after its being used or filed with the SEC.

2.3        Expenses.  The Company shall pay all Registration
Expenses in connection with the registration pursuant to Section 2.1 or
2.2.  Each Holder shall pay all
underwriting discounts and commissions and transfer taxes, if any, relating to
the sale or disposition of such Holder’s Registrable Securities pursuant to the
Shelf Registration Statement.

2.4.       Effectiveness.  (a) 
The Company will be deemed not to have used its reasonable efforts to
cause the Exchange Offer Registration Statement or its reasonable best efforts
to cause the Shelf Registration Statement, as the case may be, to become, or to
remain, effective during the requisite period if the Company voluntarily takes
any action that would, or omits to take any action which omission would, result
in any such Registration Statement not being declared effective or in the
Holders of Registrable Securities covered thereby not being able to exchange or
offer and sell such Registrable Securities during that period as and to the
extent contemplated hereby, unless such action is required by applicable law.

(b)           An Exchange Offer
Registration Statement pursuant to Section 2.1 hereof or a Shelf Registration
Statement pursuant to Section 2.2 hereof will not be deemed to have become
effective unless it has been declared effective by the SEC; provided, however, that if, after it has been declared
effective, the offering of Registrable Securities pursuant to an Exchange Offer
Registration Statement or a Shelf Registration Statement is interfered with by
any stop order, injunction or other order or requirement of the SEC or any
other governmental agency or court, such Registration Statement will be deemed
not to have become effective during the period of such interference, until the
offering of Registrable Securities pursuant to such Registration Statement may
legally resume.

2.5           Interest.  The Indenture executed in connection with the
Securities will provide that in the event that either (a) the Exchange Offer
Registration Statement is not filed with the Commission on or prior to the 210th calendar day following the date of original
issue of the Securities, (b) the Exchange Offer Registration Statement (or, if
a change in law or in applicable interpretations of the staff of the SEC does
not permit the Company to effect a Registered Exchange Offer, the Shelf
Registration Statement) has not been declared effective on or prior to the 270th calendar day following the date of original
issue of the Securities, (c) the Exchange Offer is not consummated on or prior
to the 315th calendar day following the date of original
issue of the Securities, (d) the Shelf Registration Statement is not declared
effective by the SEC within the later of (A) 180 days after being required or
requested by a Holder to file a Shelf Registration Statement, 

 

or (B) 270 days after the
original issue of the Registrable Securities, or (e) after the Exchange Offer
Registration Statement or the Shelf Registration Statement, as the case may be,
is declared effective, such Registration Statement thereafter ceases to be
effective or usable and the aggregate number of days in any consecutive
twelve-month period for which the Shelf Registration Statement shall not be
usable exceeds 30 days in the aggregate (each such event referred to in clauses
(a) through (e) above, a “Registration Default”), the interest rate borne by
the Securities shall be increased (“Additional Interest”) by one-quarter of one
percent per annum upon the occurrence of each Registration Default, which rate
will increase by one quarter of one percent each 90-day period that such
Additional Interest continues to accrue under any such circumstance, provided
that the maximum aggregate increase in the interest rate will in no event
exceed one percent (1%) per annum. 
Following the cure of all Registration Defaults the accrual of
Additional Interest will cease and the interest rate will revert to the
original rate.

The Company shall
notify the Trustee within three business days after each and every date on
which an event occurs in respect of which Additional Interest is required to be
paid (an “Event Date”).  Additional
Interest shall be paid by depositing with the Trustee, in trust, for the
benefit of the Holders of Registrable Securities, on or before the applicable
semiannual interest payment date, immediately available funds in sums
sufficient to pay the Additional Interest then due.  The Additional Interest due shall be payable
on each interest payment date to the record Holder of Securities entitled to
receive the interest payment to be paid on such date as set forth in the Indenture.  Each obligation to pay Additional Interest
shall be deemed to accrue from and including the day following the applicable
Event Date.

3.          Registration Procedures.

In connection with
the obligations of the Company with respect to Registration Statements pursuant
to Sections 2.1 and 2.2 hereof, the Company shall:

(a)        prepare and file with the
SEC a Registration Statement, within the relevant time period specified in
Section 2, on the appropriate form under the 1933 Act, which form (i) shall be
selected by the Company, (ii) shall, in the case of a Shelf Registration, be
available for the sale of the Registrable Securities by the selling Holders thereof,
(iii) shall comply as to form in all material respects with the requirements of
the applicable form and include or incorporate by reference all financial
statements required by the SEC to be filed therewith or incorporated by
reference therein, and (iv) shall comply in all respects with the requirements
of Regulation S-T under the 1933 Act, and use its reasonable best efforts to
cause such Registration Statement to become effective and remain effective in
accordance with Section 2 hereof;

 

(b)        prepare and file with the
SEC such amendments and post-effective amendments to each Registration
Statement as may be necessary under applicable law to keep such Registration
Statement effective for the applicable period; and cause each Prospectus to be
supplemented by any required prospectus supplement, and as so supplemented to
be filed pursuant to Rule 424 (or any similar provision then in force) under
the 1933 Act and comply with the provisions of the 1933 Act, the 1934 Act and
the rules and regulations thereunder applicable to them with respect to the
disposition of all securities covered by each Registration Statement during the
applicable period in accordance with the intended method or methods of
distribution by the selling Holders thereof (including sales by any
Participating Broker-Dealer);

(c)        in the case of a Shelf
Registration, (i) notify each Holder of Registrable Securities, at least five
business days prior to filing, that a Shelf Registration Statement with respect
to the Registrable Securities is being filed and advising such Holders that the
distribution of Registrable Securities will be made in accordance with the
method selected by the Majority Holders participating in the Shelf
Registration; (ii) furnish to each Holder of Registrable Securities and to each
underwriter of an underwritten offering of Registrable Securities, if any,
without charge, as many copies of each Prospectus, including each preliminary
Prospectus, and any amendment or supplement thereto and such other documents as
such Holder or underwriter may reasonably request, including financial
statements and schedules and, if the Holder so requests, all exhibits in order
to facilitate the public sale or other disposition of the Registrable
Securities; and (iii) hereby consent to the use of the Prospectus or any
amendment or supplement thereto by each of the selling Holders of Registrable
Securities in connection with the offering and sale of the Registrable
Securities covered by the Prospectus or any amendment or supplement thereto;

(d)        use its reasonable best
efforts to register or qualify the Registrable Securities under all applicable
state securities or “blue sky” laws of such jurisdictions as any Holder of
Registrable Securities covered by a Registration Statement and each underwriter
of an underwritten offering of Registrable Securities shall reasonably request
by the time the applicable Registration Statement is declared effective by the
SEC, and do any and all other acts and things which may be reasonably necessary
or advisable to enable each such Holder and underwriter to consummate the
disposition in each such jurisdiction of such Registrable Securities owned by
such Holder; provided, however, that the
Company shall not be required to (i) qualify as a foreign corporation or as a
dealer in securities in any jurisdiction where it would not otherwise be
required to qualify but for this Section 3(d), or (ii) take any action which
would subject it to general service of process or taxation in any such
jurisdiction where it is not then so subject;

 

(e)        notify promptly each
Holder of Registrable Securities under a Shelf Registration or any
Participating Broker-Dealer who has notified the Company that it is utilizing
the Exchange Offer Registration Statement as provided in paragraph (f) below and,
if requested by such Holder or Participating Broker-Dealer, confirm such advice
in writing promptly (i) when a Registration Statement has become effective and
when any post-effective amendments and supplements thereto become effective,
(ii) of any request by the SEC or any state securities authority for
post-effective amendments and supplements to a Registration Statement and
Prospectus or for additional information after the Registration Statement has
become effective, (iii) of the issuance by the SEC or any state securities
authority of any stop order suspending the effectiveness of a Registration
Statement or the initiation of any proceedings for that purpose, (iv) in the
case of a Shelf Registration, if, between the effective date of a Registration Statement
and the closing of any sale of Registrable Securities covered thereby, the
representations and warranties of the Company contained in any underwriting
agreement, securities sales agreement or other similar agreement, if any,
relating to the offering cease to be true and correct in all material respects,
(v) of the happening of any event or the discovery of any facts during the
period a Shelf Registration Statement is effective which makes any statement
made in such Registration Statement or the related Prospectus untrue in any
material respect or which requires the making of any changes in such
Registration Statement or Prospectus in order to make the statements therein
not misleading, (vi) of the receipt by the Company of any notification with respect
to the suspension of the qualification of the Registrable Securities or the
Exchange Securities, as the case may be, for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose and (vii) of any
determination by the Company that a post-effective amendment to such
Registration Statement would be appropriate;

(f)         (A)  in the case of the Exchange Offer
Registration Statement (i) include in the Exchange Offer Registration
Statement a section entitled “Plan of Distribution” which section shall be
reasonably acceptable to the Representatives on behalf of the Participating
Broker-Dealers, and which shall contain a summary statement of the positions
taken or policies made by the staff of the SEC with respect to the potential “underwriter”
status of any broker-dealer that holds Registrable Securities acquired for its
own account as a result of market-making activities or other trading activities
and that will be the beneficial owner (as defined in Rule 13d-3 under the
Exchange Act) of Exchange Securities to be received by such broker-dealer in
the Exchange Offer, whether such positions or policies have been publicly
disseminated by the staff of the SEC or such positions or policies, in the
reasonable judgment of the Representatives on behalf of the Participating
Broker-Dealers and its counsel, represent the prevailing views of the staff of
the SEC, including a statement that any such broker-dealer who receives
Exchange Securities for Registrable Securities pursuant to the Exchange Offer
may be deemed a statutory underwriter and must deliver a prospectus 

 

meeting the requirements
of the 1933 Act in connection with any resale of such Exchange Securities,
(ii) furnish to each Participating Broker-Dealer who has delivered to the
Company the notice referred to in Section 3(e), without charge, as many copies
of each Prospectus included in the Exchange Offer Registration Statement,
including any preliminary prospectus, and any amendment or supplement thereto,
as such Participating Broker-Dealer may reasonably request, (iii) hereby
consent to the use of the Prospectus forming part of the Exchange Offer
Registration Statement or any amendment or supplement thereto, by any Person
subject to the prospectus delivery requirements of the SEC, including all
Participating Broker-Dealers, in connection with the sale or transfer of the
Exchange Securities covered by the Prospectus or any amendment or supplement
thereto, and (iv) include in the transmittal letter or similar documentation to
be executed by an exchange offeree in order to participate in the Exchange
Offer (x) the following provision:

“If the exchange offeree
is a broker-dealer holding Registrable Securities acquired for its own account
as a result of market-making activities or other trading activities, it will
deliver a prospectus meeting the requirements of the 1933 Act in connection
with any resale of Exchange Securities received in respect of such Registrable
Securities pursuant to the Exchange Offer;” and

(y) a statement to the
effect that by a broker-dealer making the acknowledgment described in clause
(x) and by delivering a Prospectus in connection with the exchange of
Registrable Securities, the broker-dealer will not be deemed to admit that it
is an underwriter within the meaning of the 1933 Act; and

(B)       in the case of any Exchange
Offer Registration Statement, the Company agrees to deliver to the Initial
Purchasers on behalf of the Participating Broker-Dealers upon the effectiveness
of the Exchange Offer Registration Statement an officers’ certificates
substantially in the form customarily delivered in a public offering of debt
securities;

(g)       (i)  in the case of an Exchange Offer, furnish
counsel for the Initial Purchasers and (ii) in the case of a Shelf
Registration, furnish counsel for the Holders of Registrable Securities copies
of any comment letters received from the SEC or any other request by the SEC or
any state securities authority for amendments or supplements to a Registration
Statement and Prospectus or for additional information;

(h)        make every reasonable
effort to obtain the withdrawal of any order suspending the effectiveness of a
Registration Statement at the earliest possible moment;

 

(i)         in the case of a Shelf
Registration, furnish to each Holder of Registrable Securities, and each
underwriter, if any, without charge, at least one conformed copy of each
Registration Statement and any post-effective amendment thereto, including
financial statements and schedules (without documents incorporated therein by
reference and all exhibits thereto, unless requested);

(j)         in the case of a Shelf
Registration, cooperate with the selling Holders of Registrable Securities to
facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be sold and not bearing any restrictive legends; and
enable such Registrable Securities to be in such denominations (consistent with
the provisions of the Indenture) and registered in such names as the selling
Holders or the underwriters, if any, may reasonably request at least three
business days prior to the closing of any sale of Registrable Securities;

(k)        in the case of a Shelf
Registration, upon the occurrence of any event or the discovery of any facts,
each as contemplated by Sections 3(e)(v) and 3(e)(vi) hereof, as promptly as
practicable after the occurrence of such an event, use its reasonable best
efforts to prepare a supplement or post-effective amendment to the Registration
Statement or the related Prospectus or any document incorporated therein by reference
or file any other required document so that, as thereafter delivered to the
purchasers of the Registrable Securities or Participating Broker-Dealers, such
Prospectus will not contain at the time of such delivery any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading or will remain so qualified. 
At such time as such public disclosure is otherwise made or the Company
determines that such disclosure is not necessary, in each case to correct any
misstatement of a material fact or to include any omitted material fact, the
Company agrees promptly to notify each Holder of such determination and to
furnish each Holder such number of copies of the Prospectus as amended or
supplemented, as such Holder may reasonably request;

(l)         in the case of a Shelf
Registration, a reasonable time prior to the filing of any Registration
Statement, any Prospectus, any amendment to a Registration Statement or
amendment or supplement to a Prospectus or any document which is to be
incorporated by reference into a Registration Statement or a Prospectus after
initial filing of a Registration Statement, provide copies of such document to
the Initial Purchasers on behalf of such Holders; and make representatives of
the Company as shall be reasonably requested by the Holders of Registrable
Securities, or the Initial Purchasers on behalf of such Holders, available for
discussion of such document;

 

(m)          obtain
a CUSIP number for all Exchange Securities, Private Exchange Securities or
Registrable Securities, as the case may be, not later than the effective date
of a Registration Statement, and provide the Trustee with printed certificates
for the Exchange Securities, Private Exchange Securities or the Registrable
Securities, as the case may be, in a form eligible for deposit with the
Depositary;

(n)           (i)  cause the Indenture to be qualified under the
TIA in connection with the registration of the Exchange Securities or
Registrable Securities, as the case may be, (ii) cooperate with the Trustee and
the Holders to effect such changes to the Indenture as may be required for the
Indenture to be so qualified in accordance with the terms of the TIA and (iii) execute,
and use its reasonable best efforts to cause the Trustee to execute, all
documents as may be required to effect such changes, and all other forms and
documents required to be filed with the SEC to enable the Indenture to be so
qualified in a timely manner;

(o)           in
the case of a Shelf Registration, enter into agreements (including underwriting
agreements) and take all other customary and appropriate actions in order to
expedite or facilitate the disposition of such Registrable Securities and in
such connection whether or not an underwriting agreement is entered into and
whether or not the registration is an underwritten registration:

(i)  make such representations and warranties to
the Holders of such Registrable Securities and the underwriters, if any, in
form, substance and scope as are customarily made by issuers to underwriters in
similar underwritten offerings as may be reasonably requested by them;

(ii)  obtain opinions of counsel to the Company and
updates thereof (which counsel and opinions (in form, scope and substance)
shall be reasonably satisfactory to the managing underwriters, if any, and the
holders of a majority in principal amount of the Registrable Securities being
sold) addressed to each selling Holder and the underwriters, if any, covering
the matters customarily covered in opinions requested in sales of securities or
underwritten offerings and such other matters as may be reasonably requested by
such Holders and underwriters;

(iii)  obtain “cold comfort” letters and updates
thereof from the Company’s independent certified public accountants (and, if
necessary, any other independent certified public accountants of any subsidiary
of the Company or of any business acquired by the Company for which financial
statements are, or are required to be, included in the Registration Statement)
addressed to the underwriters, if any, and use reasonable efforts to have 

 

such letter addressed to
the selling Holders of Registrable Securities (to the extent consistent with
Statement on Auditing Standards No. 72 of the American Institute of Certified
Public Accounts), such letters to be in customary form and covering matters of
the type customarily covered in “cold comfort” letters to underwriters in
connection with similar underwritten offerings;

(iv)  enter into a securities sales agreement with
the Holders and an agent of the Holders providing for, among other things, the
appointment of such agent for the selling Holders for the purpose of soliciting
purchases of Registrable Securities, which agreement shall be in form,
substance and scope customary for similar offerings;

(v)  if an underwriting agreement is entered into,
cause the same to set forth indemnification provisions and procedures
substantially equivalent to the indemnification provisions and procedures set
forth in Section 4 hereof with respect to the underwriters and all other
parties to be indemnified pursuant to said Section or, at the request of any
underwriters, in the form customarily provided to such underwriters in similar
types of transactions; and

(vi)  deliver such documents and certificates as
may be reasonably requested and as are customarily delivered in similar
offerings to the Holders of a majority in principal amount of the Registrable
Securities being sold and the managing underwriters, if any.

The above shall be done
at (i) the effectiveness of such Registration Statement (and each
post-effective amendment thereto) and (ii) each closing under any underwriting
or similar agreement as and to the extent required thereunder;

(p)           in
the case of a Shelf Registration or if a Prospectus is required to be delivered
by any Participating Broker-Dealer in the case of an Exchange Offer, make
available for inspection by representatives of the Holders of the Registrable
Securities, any underwriters participating in any disposition pursuant to a
Shelf Registration Statement, any Participating Broker-Dealer and any counsel
or accountant retained by any of the foregoing, all financial and other
records, pertinent corporate documents and properties of the Company reasonably
requested by any such persons, and cause the respective officers, directors,
employees, and any other agents of the Company to supply all information
reasonably requested by any such representative, underwriter, special counsel or
accountant in connection with a Registration Statement, and make such 

 

representatives of the Company available for discussion of such
documents as shall be reasonably requested by the Initial Purchasers;

(q)           (i)  in the case of an Exchange Offer Registration
Statement, a reasonable time prior to the filing of any Exchange Offer
Registration Statement, any Prospectus forming a part thereof, any amendment to
an Exchange Offer Registration Statement or amendment or supplement to such
Prospectus, provide copies of such document to the Initial Purchasers and to
counsel to the Holders of Registrable Securities and make such changes in any
such document prior to the filing thereof as the Initial Purchasers or counsel
to the Holders of Registrable Securities may reasonably request and, except as
otherwise required by applicable law, not file any such document in a form to
which the Initial Purchasers on behalf of the Holders of Registrable Securities
and counsel to the Holders of Registrable Securities shall not have previously
been advised and furnished a copy of or to which the Initial Purchasers on
behalf of the Holders of Registrable Securities or counsel to the Holders of
Registrable Securities shall reasonably object, and make the representatives of
the Company available for discussion of such documents as shall be reasonably
requested by the Initial Purchasers; and

(ii)  in the case of a Shelf Registration, a
reasonable time prior to filing any Shelf Registration Statement, any
Prospectus forming a part thereof, any amendment to such Shelf Registration
Statement or amendment or supplement to such Prospectus, provide copies of such
document to the Holders of Registrable Securities, to the Initial Purchasers,
to counsel for the Holders and to the underwriter or underwriters of an
underwritten offering of Registrable Securities, if any, make such changes in
any such document prior to the filing thereof as the Initial Purchasers, the
counsel to the Holders or the underwriter or underwriters reasonably request
and not file any such document in a form to which the Majority Holders, the
Initial Purchasers on behalf of the Holders of Registrable Securities, counsel
for the Holders of Registrable Securities or any underwriter shall not have
previously been advised and furnished a copy of or to which the Majority
Holders, the Initial Purchasers on behalf of the Holders of Registrable
Securities, counsel to the Holders of Registrable Securities or any underwriter
shall reasonably object, and make the representatives of the Company available
for discussion of such document as shall be reasonably requested by the Holders
of Registrable Securities, the Initial Purchasers on behalf of such Holders,
counsel for the Holders of Registrable Securities or any underwriter.

(r)            in
the case of a Shelf Registration, use its best efforts to cause all Registrable
Securities to be listed on any securities exchange on which similar debt
securities issued by the Company are then listed if requested by the Majority
Holders, or 

 

if requested by the underwriter or underwriters of an underwritten
offering of Registrable Securities, if any;

(s)           in
the case of a Shelf Registration, use its reasonable best efforts to cause the
Registrable Securities to be rated by the appropriate rating agencies, if so
requested by the Majority Holders, or if requested by the underwriter or
underwriters of an underwritten offering of Registrable Securities, if any;

(t)            otherwise
comply with all applicable rules and regulations of the SEC and make available
to its security holders, as soon as reasonably practicable, an earnings
statement covering at least 12 months which shall satisfy the provisions of
Section 11(a) of the 1933 Act and Rule 158 thereunder;

(u)           cooperate
and assist in any filings required to be made with the NASD and, in the case of
a Shelf Registration, in the performance of any due diligence investigation by
any underwriter and its counsel (including any “qualified independent
underwriter” that is required to be retained in accordance with the rules and
regulations of the NASD); and

(v)           upon
consummation of an Exchange Offer or a Private Exchange, obtain a customary
opinion of counsel to the Company addressed to the Trustee for the benefit of
all Holders of Registrable Securities participating in the Exchange Offer or
Private Exchange, and which includes an opinion that (i) the Company has
duly authorized, executed and delivered the Exchange Securities and/or Private
Exchange Securities, as applicable, and the related indenture, and
(ii) each of the Exchange Securities and related indenture constitute a
legal, valid and binding obligation of the Company, enforceable against the
Company in accordance with its respective terms (with customary exceptions).

In the case of a
Shelf Registration Statement, the Company may (as a condition to such Holder’s
participation in the Shelf Registration) require each Holder of Registrable
Securities to furnish to the Company such information regarding the Holder and
the proposed distribution by such Holder of such Registrable Securities as the
Company may from time to time reasonably request in writing.

In the case of a
Shelf Registration Statement, each Holder agrees that, upon receipt of any
notice from the Company of the happening of any event or the discovery of any
facts, each of the kind described in Section 3(e)(v) hereof, such Holder will
forthwith discontinue disposition of Registrable Securities pursuant to a
Registration Statement until such Holder’s receipt of the copies of the
supplemented or amended Prospectus contemplated by Section 3(k) hereof, and, if
so directed by the Company, 

 

such Holder will deliver
to the Company (at its expense) all copies in such Holder’s possession, other
than permanent file copies then in such Holder’s possession, of the Prospectus covering
such Registrable Securities current at the time of receipt of such notice.

In the event that
the Company fails to effect the Exchange Offer or file any Shelf Registration
Statement and maintain the effectiveness of any Shelf Registration Statement as
provided herein, the Company shall not file any Registration Statement with
respect to any securities (within the meaning of Section 2(1) of the 1933 Act)
of the Company other than Registrable Securities.

If any of the
Registrable Securities covered by any Shelf Registration Statement are to be
sold in an underwritten offering, the underwriter or underwriters and manager
or managers that will manage such offering will be selected by the Majority
Holders of such Registrable Securities included in such offering and shall be
acceptable to the Company.  No Holder of
Registrable Securities may participate in any underwritten registration
hereunder unless such Holder (a) agrees to sell such Holder’s Registrable
Securities on the basis provided in any underwriting arrangements approved by
the persons entitled hereunder to approve such arrangements and
(b) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents required under the
terms of such underwriting arrangements.

4.             Indemnification; Contribution.

(a)    The Company agrees to indemnify and hold
harmless the Initial Purchasers, each Holder, each Participating Broker-Dealer,
each Person who participates as an underwriter (any such Person being an “Underwriter”)
and each Person, if any, who controls any Holder or Underwriter within the
meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act as follows:

(i)  against any and all loss, liability, claim,
damage and expense whatsoever, as incurred, arising out of any untrue statement
or alleged untrue statement of a material fact contained in any Registration
Statement (or any amendment or supplement thereto) pursuant to which Exchange
Securities or Registrable Securities were registered under the 1933 Act,
including all documents incorporated therein by reference, or the omission or
alleged omission therefrom of a material fact required to be stated therein or
necessary to make the statements therein not misleading, or arising out of any
untrue statement or alleged untrue statement of a material fact contained in
any Prospectus (or any amendment or supplement thereto) or the omission or
alleged omission therefrom of a material 

 

fact necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading;

(ii)  against any and all loss, liability, claim,
damage and expense whatsoever, as incurred, to the extent of the aggregate
amount paid in settlement of any litigation, or any investigation or proceeding
by any governmental agency or body, commenced or threatened, or of any claim
whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission; 
provided that (subject to Section 4(d) below) any such settlement is
effected with the written consent of the Company; and

(iii)  against any and all expense whatsoever, as
incurred (including the fees and disbursements of counsel chosen by any
indemnified party), reasonably incurred in investigating, preparing or
defending against any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever
based upon any such untrue statement or omission, or any such alleged untrue
statement or omission, to the extent that any such expense is not paid under
subparagraph (i) or (ii) above;

provided,
however, that this indemnity agreement shall not apply to any loss,
liability, claim, damage or expense to the extent arising out of any untrue
statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with written information furnished to the Company by any
Holder or Underwriter expressly for use in a Registration Statement (or any
amendment thereto) or any Prospectus (or any amendment or supplement thereto).

(b)           Each
Holder severally, but not jointly, agrees to indemnify and hold harmless the
Company, the Initial Purchasers, each Underwriter and the other selling
Holders, and each of their respective directors and officers, and each Person,
if any, who controls the Company, the Initial Purchasers, any Underwriter or
any other selling Holder within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act, against any and all loss, liability, claim, damage
and expense described in the indemnity contained in Section 4(a) hereof, as
incurred, but only with respect to untrue statements or omissions, or alleged
untrue statements or omissions, made in the Shelf Registration Statement (or
any amendment thereto) or any Prospectus included therein (or any amendment or
supplement thereto) in reliance upon and in conformity with written information
with respect to such Holder furnished to the Company by such Holder expressly
for use in the Shelf Registration Statement (or any amendment thereto) or such
Prospectus (or any amendment or supplement thereto); provided,
however, that no such Holder shall be liable for any claims
hereunder in excess of the amount of net proceeds 

 

received by such Holder from the sale of Registrable Securities
pursuant to such Shelf Registration Statement.

(c)           Each
indemnified party shall give notice as promptly as reasonably practicable to
each indemnifying party of any action or proceeding commenced against it in
respect of which indemnity may be sought hereunder, but failure so to notify an
indemnifying party shall not relieve such indemnifying party from any liability
hereunder to the extent it is not materially prejudiced as a result thereof and
in any event shall not relieve it from any liability which it may have
otherwise than on account of this indemnity agreement.  An indemnifying party may participate at its
own expense in the defense of such action; provided, however, that counsel to
the indemnifying party shall not (except with the consent of the indemnified
party) also be counsel to the indemnified party.  In no event shall the indemnifying party or
parties be liable for the fees and expenses of more than one counsel (in
addition to any local counsel) separate from their own counsel for all
indemnified parties in connection with any one action or separate but similar
or related actions in the same jurisdiction arising out of the same general
allegations or circumstances. No indemnifying party shall, without the prior
written consent of the indemnified parties, settle or compromise or consent to
the entry of any judgment with respect to any litigation, or any investigation
or proceeding by any governmental agency or body, commenced or threatened, or
any claim whatsoever in respect of which indemnification or contribution could
be sought under this Section 4 (whether or not the indemnified parties are
actual or potential parties thereto), unless such settlement, compromise or
consent (i) includes an unconditional release of each indemnified party from
all liability arising out of such litigation, investigation, proceeding or
claim and (ii) does not include a statement as to or an admission of fault,
culpability or a failure to act by or on behalf of any indemnified party.

(d)           If
at any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel, such
indemnifying party agrees that it shall be liable for any settlement of the
nature contemplated by Section 4(a)(ii) effected without its written consent if
(i) such settlement is entered into more than 45 days after receipt by such
indemnifying party of the aforesaid request, (ii) such indemnifying party shall
have received notice of the terms of such settlement at least 30 days prior to
such settlement being entered into and (iii) such indemnifying party shall not
have reimbursed such indemnified party in accordance with such request prior to
the date of such settlement.

(e)           If
the indemnification provided for in this Section 4 is for any reason
unavailable to or insufficient to hold harmless an indemnified party in respect
of any losses, liabilities, claims, damages or expenses referred to therein,
then each indemnifying party shall contribute to the aggregate amount of such
losses, liabilities, claims, damages 

 

and expenses incurred by such indemnified party, as incurred, in such
proportion as is appropriate to reflect the relative fault of the Company on
the one hand and the Holders and the Initial Purchasers on the other hand in
connection with the statements or omissions which resulted in such losses,
liabilities, claims, damages or expenses, as well as any other relevant
equitable considerations.

The relative fault
of the Company on the one hand and the Holders and the Initial Purchasers on
the other hand shall be determined by reference to, among other things, whether
any such untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by
the Company, the Holders or the Initial Purchasers and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.

The Company, the
Holders and the Initial Purchasers agree that it would not be just and
equitable if contribution pursuant to this Section 4 were determined by pro
rata allocation (even if the Initial Purchasers were treated as one entity for
such purpose) or by any other method of allocation which does not take account
of the equitable considerations referred to above in this Section 4. The
aggregate amount of losses, liabilities, claims, damages and expenses incurred
by an indemnified party and referred to above in this Section 4 shall be deemed
to include any legal or other expenses reasonably incurred by such indemnified
party in investigating, preparing or defending against any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever based upon any such untrue or alleged
untrue statement or omission or alleged omission.

Notwithstanding
the provisions of this Section 4, no Initial Purchaser shall be required to
contribute any amount in excess of the amount by which the total price at which
the Securities sold by it were offered exceeds the amount of any damages which
such Initial Purchaser has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission.

No Person guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of
the 1933 Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation.

For purposes of
this Section 4, each Person, if any, who controls an Initial Purchaser or
Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the
1934 Act shall have the same rights to contribution as such Initial Purchaser
or Holder, and each director of the Company, and each Person, if any, who
controls the Company within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act shall have the same rights to contribution as the
Company.  The Initial Purchasers’
respective obligations to contribute pursuant to this Section 7 are several in
proportion 

 

to the principal amount
of Securities set forth opposite their respective names in Schedule A to the
Purchase Agreement and not joint.

5.             Miscellaneous.

5.1           Rule 144 and Rule 144A.  For so long as the Company is subject to the
reporting requirements of Section 13 or 15 of the 1934 Act, the Company
covenants that it will file the reports required to be filed by it under the
1933 Act and Section 13(a) or 15(d) of the 1934 Act and the rules and
regulations adopted by the SEC thereunder. 
If the Company ceases to be so required to file such reports, the
Company covenants that it will upon the request of any Holder of Registrable
Securities (a) make publicly available such information as is necessary to
permit sales pursuant to Rule 144 under the 1933 Act, (b) deliver such
information to a prospective purchaser as is necessary to permit sales pursuant
to Rule 144A under the 1933 Act and it will take such further action as any
Holder of Registrable Securities may reasonably request, and (c) take such
further action that is reasonable in the circumstances, in each case, to the
extent required from time to time to enable such Holder to sell its Registrable
Securities without registration under the 1933 Act within the limitation of the
exemptions provided by (i) Rule 144 under the 1933 Act, as such Rule may be
amended from time to time, (ii) Rule 144A under the 1933 Act, as such Rule may
be amended from time to time, or (iii) any similar rules or regulations
hereafter adopted by the SEC.  Upon the
request of any Holder of Registrable Securities, the Company will deliver to
such Holder a written statement as to whether it has complied with such
requirements.

5.2           No Inconsistent Agreements.  The Company has not entered into and the
Company will not after the date of this Agreement enter into any agreement
which is inconsistent with the rights granted to the Holders of Registrable
Securities in this Agreement or otherwise conflicts with the provisions
hereof.  The rights granted to the
Holders hereunder do not and will not for the term of this Agreement in any way
conflict with the rights granted to the holders of the Company’s other issued
and outstanding securities under any such agreements.

5.3           Amendments and Waivers.  The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given unless the Company has obtained the written consent of Holders of at
least a majority in aggregate principal amount of the outstanding Registrable
Securities affected by such amendment, modification, supplement, waiver or
departure.

5.4           Notices.  All notices and other communications provided
for or permitted hereunder shall be made in writing by hand delivery,
registered first-class 

 

mail, telex, telecopier, or any courier guaranteeing overnight delivery
(a) if to a Holder, at the most current address given by such Holder to the
Company by means of a notice given in accordance with the provisions of this
Section 5.4, which address initially is the address set forth in the Purchase
Agreement with respect to the Initial Purchasers; and (b) if to the
Company, initially at the Company’s address set forth in the Purchase
Agreement, and thereafter at such other address of which notice is given in
accordance with the provisions of this Section 5.4.

All such notices
and communications shall be deemed to have been duly given:  at the time delivered by hand, if personally
delivered; two business days after being deposited in the mail, postage
prepaid, if mailed; when answered back, if telexed; when receipt is
acknowledged, if telecopied; and on the next business day if timely delivered
to an air courier guaranteeing overnight delivery.

Copies of all such
notices, demands, or other communications shall be concurrently delivered by
the person giving the same to the Trustee under the Indenture, at the address
specified in such Indenture.

5.5           Successor and Assigns.  This Agreement shall inure to the benefit of
and be binding upon the successors, assigns and transferees of each of the
parties, including, without limitation and without the need for an express
assignment, subsequent Holders; provided that nothing herein shall be
deemed to permit any assignment, transfer or other disposition of Registrable
Securities in violation of the terms of the Purchase Agreement or the
Indenture.  If any transferee of any
Holder shall acquire Registrable Securities, in any manner, whether by operation
of law or otherwise, such Registrable Securities shall be held subject to all
of the terms of this Agreement, and by taking and holding such Registrable
Securities such person shall be conclusively deemed to have agreed to be bound
by and to perform all of the terms and provisions of this Agreement, including
the restrictions on resale set forth in this Agreement and, if applicable, the
Purchase Agreement, and such person shall be entitled to receive the benefits
hereof.

5.6           Third Party Beneficiaries.  The Initial Purchasers (even if the Initial
Purchasers are not Holders of Registrable Securities) shall be third party
beneficiaries to the agreements made hereunder between the Company, on the one
hand, and the Holders, on the other hand, and shall have the right to enforce
such agreements directly to the extent they deem such enforcement necessary or
advisable to protect their rights or the rights of Holders hereunder.  Each Holder of Registrable Securities shall
be a third party beneficiary to the agreements made hereunder between the
Company, on the one hand, and the Initial Purchasers, on the other hand, and
shall have the right to 

 

enforce such agreements directly to the extent it deems such
enforcement necessary or advisable to protect its rights hereunder.

5.7.          Specific
Enforcement.  Without limiting the
remedies available to the Initial Purchasers and the Holders, the Company
acknowledges that any failure by the Company to comply with its obligations
under Sections 2.1 through 2.4 hereof may result in material irreparable injury
to the Initial Purchasers or the Holders for which there is no adequate remedy
at law, that it would not be possible to measure damages for such injuries
precisely and that, in the event of any such failure, the Initial Purchasers or
any Holder may obtain such relief as may be required to specifically enforce
the Company’s obligations under Sections 2.1 through 2.4 hereof.

5.8.          Restriction
on Resales.  Until the expiration of
two years after the original issuance of the Securities, the Company will not,
and will cause its “affiliates” (as such term is defined in Rule 144(a)(1)
under the 1933 Act) not to, resell any Securities which are “restricted
securities” (as such term is defined under Rule 144(a)(3) under the 1933 Act)
that have been reacquired by any of them and shall immediately upon any
purchase of any such Securities submit such Securities to the Trustee for
cancellation.

5.9           Counterparts.  This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

5.10         Headings.  The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

5.11         GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO
THE PRINCIPLES OF CONFLICT OF LAWS THEREOF.

5.12         Severability.
In the event that any one or more of the provisions contained herein, or the
application thereof in any circumstance, is held invalid, illegal or
unenforceable, the validity, legality and enforceability of any such provision
in every other respect and of the remaining provisions contained herein shall
not be affected or impaired thereby.

 

IN WITNESS
WHEREOF, the parties have executed this Agreement as of the date first written
above.

	
  

  	
  BALTIMORE GAS AND ELECTRIC

  
	
  

  	
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Jeanne M. Blondia

  	
   

  
	
   

  	
   

  	
   Name: Jeanne M. Blondia

  
	
   

  	
   

  	
   Title: Treasurer and Assistant

             Secretary

  

 

	
   

  	
   

  	
   

  
	
  Confirmed and accepted as

  	
   

  	
   

  
	
    of
  the date first above

  	
   

  	
   

  
	
    written:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BANC OF AMERICA
  SECURITIES LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Peter J.
  Carbone

  	
   

  	
   

  
	
    Name:
  Peter J. Carbone

  	
   

  	
   

  
	
    Title:
  Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BARCLAYS CAPITAL
  INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Pamela
  Kendall

  	
   

  	
   

  
	
    Name:
  Pamela Kendall

  	
   

  	
   

  
	
    Title:
  Director

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CITIGROUP GLOBAL
  MARKETS INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Brian D.
  Bednarkski

  	
   

  	
   

  
	
    Name:
  Brian D. Bednarkski

  	
   

  	
   

  
	
    Title:
  Director

  	
   

  	
   

  

 

 

 

	
  MERRILL LYNCH & CO.

  	
   

  	
   

  
	
  MERRILL LYNCH, PIERCE, FENNER & SMITH

  	
   

  
	
                               INCORPORATED

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Jeff Kulik

  	
   

  	
   

  
	
    Name:
  Jeff Kulik

  	
   

  	
   

  
	
    Title:
  Managing Director

  	
   

  	
   

  
				

 

 

For themselves and
as Representative(s) of the other Initial Purchasers named in Schedule A
hereto.

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