Document:

Exhibit
4.2

FIRST
SUPPLEMENTAL INDENTURE

Dated as of June 14,
2006

THIS FIRST SUPPLEMENTAL INDENTURE to the
Indenture referred to below is dated as of June 14, 2006 (this “First
Supplemental Indenture”) between CENTRAL
ILLINOIS PUBLIC SERVICE COMPANY, an Illinois corporation (the “Company”),
and THE
BANK OF NEW YORK TRUST COMPANY, N.A., as successor trustee to The Bank
of New York (the “Trustee”).

The
Company and the Trustee are parties to an Indenture, dated as of December 1,
1998 (the “Indenture”), providing, among other things, for the issuance from
time to time of the Company’s Notes.

Pursuant
to Section 13.01 of the Indenture, the Company, when authorized by Board
Resolution, and the Trustee may enter into an indenture supplemental to the
Indenture for one or more of the purposes set forth in such Section 13.01
without the consent of the Holders of any of the Notes at the time outstanding.

The
Company has directed the Trustee to execute and deliver this First Supplemental
Indenture in accordance with the terms of the Indenture.

In
consideration of the foregoing premises, the parties mutually agree as follows
for the benefit of each other and for the equal and ratable benefit of the
Holders of the Notes:

ARTICLE I

DEFINITIONS 

Section 1.1             Definitions. Except as
otherwise defined herein, capitalized terms defined in the Indenture are used
herein as therein defined.

ARTICLE II

AMENDMENT
TO INDENTURE

Section 2.1             Amendment
to Indenture. On and after the date hereof, the Indenture shall be amended so that clause
(i) of the definition of “Capitalization” contained in Section 1.03
of the Indenture shall be amended in its entirety and replaced with the
following:  “(i) liabilities for
Debt (excluding debt relating to any securitization transaction authorized by
an order of the Illinois Commerce Commission pursuant to state legislation
authorizing such securitization) maturing more than twelve (12) months from the
date of determination;”.

Section 2.2             Receipt by Trustee. In
accordance with Section 13.05 of the Indenture, the parties acknowledge
that the Trustee has received an Officers’ Certificate and an Opinion of
Counsel as conclusive evidence that this First Supplemental Indenture complies
with the requirements of Article XIII of the Indenture.

 2
 

 

ARTICLE III

MISCELLANEOUS

Section 3.1             Parties. Nothing expressed
or mentioned herein is intended or shall be construed to give any Person, other
than the Holders and the Trustee, any legal or equitable right, remedy or claim
under or in respect of this First Supplemental Indenture or the Indenture or
any provision herein or therein contained.

Section 3.2             Governing Law. This First
Supplemental Indenture shall be governed by and deemed to be a contract under,
and construed in accordance with, the laws of the State of New York, and for
all purposes shall be construed in accordance with the laws of said State
without regard to conflicts of law principles thereof.

Section 3.3             Ratification of Indenture; First
Supplemental Indenture Part of Indenture. Except as expressly
supplemented hereby, the Indenture is in all respects ratified and confirmed
and all the terms, conditions, and provisions thereof shall remain in full
force and effect. This First Supplemental Indenture shall form a part of the
Indenture for all purposes, and every Holder of Notes heretofore or hereafter
authenticated and delivered shall be bound hereby. The Trustee makes no
representation or warranty as to the validity or sufficiency of this First
Supplemental Indenture.

Section 3.4             Multiple Originals. The
parties may sign any number of copies of this First Supplemental Indenture.
Each signed copy shall be an original, but all of them shall represent the same
agreement.

Section 3.5             Headings. The headings of
the Articles and Sections of this First Supplemental Indenture have been
inserted for convenience of reference only, are not intended to be considered a
part hereof and shall not modify or restrict any of the terms or provisions
hereof.

 

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

	
  

  	
  Central Illinois Public Service Company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Warner L. Baxter

  
	
   

  	
   

  	
  Name:  Warner
  L. Baxter

  
	
   

  	
   

  	
  Title:    
  Executive Vice President & Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

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

  
	
   

  	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel G. Dwyer

  
	
   

  	
   

  	
  Name:   Daniel
  G. Dwyer

  
	
   

  	
   

  	
  Title:    
  Vice PresidentExhibit 4.3

 

 

 

CENTRAL ILLINOIS LIGHT COMPANY

AND

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

TRUSTEE

INDENTURE

DATED
AS OF June 1, 2006

 

 

 

 

CROSS REFERENCE SHEET SHOWING THE LOCATION IN THE INDENTURE OF THE

PROVISIONS INSERTED CORRELATIVE TO SECTIONS 310 THROUGH 318(a),

INCLUSIVE, OF THE TRUST INDENTURE ACT OF 1939

	
  Trust Indenture Act

  Section

  	
   

  	
  Indenture

  Section

  
	
  310 (a) (1)

  	
   

  	
  9.09

  
	
         (a) (2)

  	
   

  	
  9.09

  
	
         (a) (3)

  	
   

  	
  Not Applicable

  
	
         (a) (4)

  	
   

  	
  Not Applicable

  
	
         (a) (5)

  	
   

  	
  9.09

  
	
         (b)

  	
   

  	
  9.08

  
	
         (c)

  	
   

  	
  Not Applicable

  
	
  311 (a)

  	
   

  	
  9.14

  
	
         (b)

  	
   

  	
  9.14

  
	
         (c)

  	
   

  	
  Not Applicable

  
	
  312 (a)

  	
   

  	
  7.01 and 7.03

  
	
         (b)

  	
   

  	
  7.03

  
	
         (c)

  	
   

  	
  7.03

  
	
  313 (a)

  	
   

  	
  7.02

  
	
         (b)

  	
   

  	
  7.02

  
	
         (c)

  	
   

  	
  7.02

  
	
         (d)

  	
   

  	
  7.02

  
	
  314 (a)

  	
   

  	
  7.01 and 6.06

  
	
         (b)

  	
   

  	
  6.05

  
	
         (c) (1)

  	
   

  	
  1.03 and 15.05

  
	
         (c) (2)

  	
   

  	
  1.03 and 15.05

  
	
         (c) (3)

  	
   

  	
  Not Applicable

  
	
         (d)

  	
   

  	
  1.03 and 4.06

  
	
         (e)

  	
   

  	
  15.05(b)

  
	
         (f)

  	
   

  	
  Not Applicable

  
	
  315 (a)

  	
   

  	
  9.01

  
	
         (b)

  	
   

  	
  8.08

  
	
         (c)

  	
   

  	
  9.01(a)

  
	
         (d)

  	
   

  	
  9.01(b)

  
	
         (e)

  	
   

  	
  8.09

  
	
  316 (a)

  	
   

  	
  8.07 and 10.04

  
	
         (b)

  	
   

  	
  8.04(b) and 13.02

  
	
         (c)

  	
   

  	
  10.06

  
	
  317 (a) (1)

  	
   

  	
  8.02(b)

  
	
         (a) (2)

  	
   

  	
  8.02(c)

  
	
         (b)

  	
   

  	
  5.02 and 6.04

  
	
  318 (a)

  	
   

  	
  15.07

  

NOTE:  This reconciliation and tie shall not, for
any purpose, be deemed to be a part of the Indenture.

 

 

Table of Contents

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE I DEFINITIONS

  	
   

  	
  1

  
	
  Section 1.01

  	
   

  	
  General.

  	
   

  	
  1

  
	
  Section 1.02

  	
   

  	
  Trust Indenture Act.

  	
   

  	
  1

  
	
  Section 1.03

  	
   

  	
  Definitions.

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II FORM, ISSUE, EXECUTION, REGISTRATION AND
  EXCHANGE OF NOTES

  	
   

  	
  7

  
	
  Section 2.01

  	
   

  	
  Forms Generally.

  	
   

  	
  7

  
	
  Section 2.02

  	
   

  	
  Form Of Trustee’s Certificate Of
  Authentication.

  	
   

  	
  8

  
	
  Section 2.03

  	
   

  	
  Amount Unlimited.

  	
   

  	
  8

  
	
  Section 2.04

  	
   

  	
  Denominations, Dates, Interest Payment And Record
  Dates.

  	
   

  	
  8

  
	
  Section 2.05

  	
   

  	
  Execution, Authentication, Delivery And Dating.

  	
   

  	
  9

  
	
  Section 2.06

  	
   

  	
  Exchange And Registration Of Transfer Of Notes.

  	
   

  	
  13

  
	
  Section 2.07

  	
   

  	
  Mutilated, Destroyed, Lost Or Stolen Notes.

  	
   

  	
  13

  
	
  Section 2.08

  	
   

  	
  Temporary Notes.

  	
   

  	
  14

  
	
  Section 2.09

  	
   

  	
  Cancellation Of Notes Paid, Etc.

  	
   

  	
  15

  
	
  Section 2.10

  	
   

  	
  Interest Rights Preserved.

  	
   

  	
  15

  
	
  Section 2.11

  	
   

  	
  Special Record Date.

  	
   

  	
  15

  
	
  Section 2.12

  	
   

  	
  Payment Of Notes.

  	
   

  	
  15

  
	
  Section 2.13

  	
   

  	
  Notes Issuable In The Form Of A Global Note.

  	
   

  	
  16

  
	
  Section 2.14

  	
   

  	
  CUSIP and ISIN Numbers.

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III REDEMPTION OF NOTES

  	
   

  	
  18

  
	
  Section 3.01

  	
   

  	
  Applicability Of Article.

  	
   

  	
  18

  
	
  Section 3.02

  	
   

  	
  Notice Of Redemption; Selection Of Notes.

  	
   

  	
  19

  
	
  Section 3.03

  	
   

  	
  Payment Of Notes On Redemption; Deposit Of
  Redemption Price.

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV SENIOR NOTE FIRST MORTGAGE BONDS

  	
   

  	
  21

  
	
  Section 4.01

  	
   

  	
  Delivery Of Initial Series Of Senior Note First
  Mortgage Bonds.

  	
   

  	
  21

  
	
  Section 4.02

  	
   

  	
  Receipt.

  	
   

  	
  21

  
	
  Section 4.03

  	
   

  	
  Senior Note First Mortgage Bonds Held By The
  Trustee.

  	
   

  	
  21

  
	
  Section 4.04

  	
   

  	
  No Transfer Of Senior Note First Mortgage Bonds;
  Exceptions.

  	
   

  	
  21

  
	
  Section 4.05

  	
   

  	
  Delivery To The Company Of All Senior Note First
  Mortgage Bonds.

  	
   

  	
  22

  
	
  Section 4.06

  	
   

  	
  Fair Value Certificate.

  	
   

  	
  22

  
	
  Section 4.07

  	
   

  	
  Further Assurances.

  	
   

  	
  23

  
	
  Section 4.08

  	
   

  	
  Exchange And Surrender Of Senior Note First Mortgage
  Bonds.

  	
   

  	
  23

  
	
  Section 4.09

  	
   

  	
  Acceptance Of Additional Senior Note First Mortgage
  Bonds.

  	
   

  	
  24

  
	
  Section 4.10

  	
   

  	
  Terms Of Senior Note First Mortgage Bonds.

  	
   

  	
  24

  
	
  Section 4.11

  	
   

  	
  Senior Note First Mortgage Bonds As Security For
  Notes.

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V SATISFACTION AND DISCHARGE; UNCLAIMED MONEYS

  	
   

  	
  25

  
	
  Section 5.01

  	
   

  	
  Satisfaction And Discharge.

  	
   

  	
  25

  
	
  Section 5.02

  	
   

  	
  Deposited Moneys To Be Held In Trust By Trustee.

  	
   

  	
  27

  

 

 i
 

 

 

	
  Section 5.03

  	
   

  	
  Paying Agent To Repay Moneys Held.

  	
   

  	
  27

  
	
  Section 5.04

  	
   

  	
  Return Of Unclaimed Moneys.

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI PARTICULAR
  COVENANTS OF THE COMPANY

  	
   

  	
  27

  
	
  Section 6.01

  	
   

  	
  Payment Of Principal And Interest.

  	
   

  	
  27

  
	
  Section 6.02

  	
   

  	
  Offices For Payments, Etc.

  	
   

  	
  27

  
	
  Section 6.03

  	
   

  	
  Appointment To Fill A Vacancy In Office Of Trustee.

  	
   

  	
  28

  
	
  Section 6.04

  	
   

  	
  Provision As To Paying Agent.

  	
   

  	
  28

  
	
  Section 6.05

  	
   

  	
  Opinions Of Counsel.

  	
   

  	
  29

  
	
  Section 6.06

  	
   

  	
  Certificates And Notice To Trustee.

  	
   

  	
  30

  
	
  Section 6.07

  	
   

  	
  Restrictions On Liens.

  	
   

  	
  30

  
	
  Section 6.08

  	
   

  	
  Restrictions On Sale And Lease-Back Transactions.

  	
   

  	
  31

  
	
  Section 6.09

  	
   

  	
  Corporate Existence.

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII REPORTS BY THE
  COMPANY AND THE TRUSTEE

  	
   

  	
  32

  
	
  Section 7.01

  	
   

  	
  SEC Reports.

  	
   

  	
  32

  
	
  Section 7.02

  	
   

  	
  Reports By The Trustee to Holders.

  	
   

  	
  33

  
	
  Section 7.03

  	
   

  	
  Communication By Holders with Other Holders.

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII REMEDIES OF
  THE TRUSTEE AND NOTEHOLDERS ON EVENTS OF DEFAULT

  	
   

  	
  33

  
	
  Section 8.01

  	
   

  	
  Events Of Default.

  	
   

  	
  33

  
	
  Section 8.02

  	
   

  	
  Collection Of Indebtedness By Trustee; Trustee
  May Prove Debt.

  	
   

  	
  35

  
	
  Section 8.03

  	
   

  	
  Application Of Proceeds.

  	
   

  	
  36

  
	
  Section 8.04

  	
   

  	
  Limitations On Suits By Noteholders.

  	
   

  	
  37

  
	
  Section 8.05

  	
   

  	
  Suits For Enforcement.

  	
   

  	
  38

  
	
  Section 8.06

  	
   

  	
  Powers And Remedies Cumulative; Delay Or Omission
  Not Waiver Of Default.

  	
   

  	
  38

  
	
  Section 8.07

  	
   

  	
  Direction of Proceedings and Waiver of Defaults By
  Majority of Noteholders.

  	
   

  	
  38

  
	
  Section 8.08

  	
   

  	
  Notice of Default.

  	
   

  	
  39

  
	
  Section 8.09

  	
   

  	
  Undertaking To Pay Costs.

  	
   

  	
  39

  
	
  Section 8.10

  	
   

  	
  Restoration of Rights on Abandonment of Proceedings.

  	
   

  	
  40

  
	
  Section 8.11

  	
   

  	
  Defaults Under The First Mortgage.

  	
   

  	
  40

  
	
  Section 8.12

  	
   

  	
  Waiver of Usury, Stay or Extension Laws.

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX CONCERNING THE
  TRUSTEE

  	
   

  	
  40

  
	
  Section 9.01

  	
   

  	
  Duties and Responsibilities of Trustee.

  	
   

  	
  40

  
	
  Section 9.02

  	
   

  	
  Reliance on Documents, Opinions, Etc.

  	
   

  	
  41

  
	
  Section 9.03

  	
   

  	
  No Responsibility For Recitals, Etc.

  	
   

  	
  42

  
	
  Section 9.04

  	
   

  	
  Trustee, Authenticating Agent, Paying Agent Or
  Registrar May Own Notes.

  	
   

  	
  43

  
	
  Section 9.05

  	
   

  	
  Moneys To Be Held In Trust.

  	
   

  	
  43

  
	
  Section 9.06

  	
   

  	
  Compensation And Expenses Of Trustee.

  	
   

  	
  43

  
	
  Section 9.07

  	
   

  	
  Officers’ Certificate As Evidence.

  	
   

  	
  43

  
	
  Section 9.08

  	
   

  	
  Conflicting Interest Of Trustee.

  	
   

  	
  44

  
	
  Section 9.09

  	
   

  	
  Existence And Eligibility Of Trustee.

  	
   

  	
  44

  

 

 ii
 

 

 

	
  Section 9.10

  	
   

  	
  Resignation Or Removal Of Trustee.

  	
   

  	
  44

  
	
  Section 9.11

  	
   

  	
  Appointment Of Successor Trustee.

  	
   

  	
  45

  
	
  Section 9.12

  	
   

  	
  Acceptance By Successor Trustee.

  	
   

  	
  45

  
	
  Section 9.13

  	
   

  	
  Succession By Merger, Etc.

  	
   

  	
  46

  
	
  Section 9.14

  	
   

  	
  Limitations On Rights Of Trustee As A Creditor.

  	
   

  	
  46

  
	
  Section 9.15

  	
   

  	
  Authenticating Agent.

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X CONCERNING THE
  NOTEHOLDERS

  	
   

  	
  47

  
	
  Section 10.01

  	
   

  	
  Action By Noteholders.

  	
   

  	
  47

  
	
  Section 10.02

  	
   

  	
  Proof Of Execution By Noteholders.

  	
   

  	
  47

  
	
  Section 10.03

  	
   

  	
  Persons Deemed Absolute Owners.

  	
   

  	
  47

  
	
  Section 10.04

  	
   

  	
  Company-Owned Notes Disregarded.

  	
   

  	
  48

  
	
  Section 10.05

  	
   

  	
  Revocation Of Consents; Future Holders Bound.

  	
   

  	
  48

  
	
  Section 10.06

  	
   

  	
  Record Date For Noteholder Acts.

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI NOTEHOLDERS’
  MEETING

  	
   

  	
  49

  
	
  Section 11.01

  	
   

  	
  Purposes Of Meetings.

  	
   

  	
  49

  
	
  Section 11.02

  	
   

  	
  Call Of Meetings By Trustee.

  	
   

  	
  49

  
	
  Section 11.03

  	
   

  	
  Call Of Meetings By Company Or Noteholders.

  	
   

  	
  49

  
	
  Section 11.04

  	
   

  	
  Qualifications For Voting.

  	
   

  	
  49

  
	
  Section 11.05

  	
   

  	
  Regulations.

  	
   

  	
  50

  
	
  Section 11.06

  	
   

  	
  Voting.

  	
   

  	
  50

  
	
  Section 11.07

  	
   

  	
  Rights Of Trustee Or Noteholders Not Delayed.

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII CONSOLIDATION,
  MERGER, SALE, TRANSFER OR CONVEYANCE

  	
   

  	
  51

  
	
  Section 12.01

  	
   

  	
  Company May Consolidate, Etc. Only On Certain
  Terms.

  	
   

  	
  51

  
	
  Section 12.02

  	
   

  	
  Successor Corporation Substituted.

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII SUPPLEMENTAL
  INDENTURES

  	
   

  	
  52

  
	
  Section 13.01

  	
   

  	
  Supplemental Indentures Without Consent Of
  Noteholders.

  	
   

  	
  52

  
	
  Section 13.02

  	
   

  	
  Supplemental Indentures With Consent Of Noteholders.

  	
   

  	
  53

  
	
  Section 13.03

  	
   

  	
  Compliance With Trust Indenture Act; Effect Of
  Supplemental Indentures.

  	
   

  	
  54

  
	
  Section 13.04

  	
   

  	
  Notation On Notes.

  	
   

  	
  54

  
	
  Section 13.05

  	
   

  	
  Evidence Of Compliance Of Supplemental Indenture To
  Be Furnished Trustee.

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIV IMMUNITY OF
  INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

  	
   

  	
  55

  
	
  Section 14.01

  	
   

  	
  Indenture And Notes Solely Corporate Obligations.

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XV MISCELLANEOUS
  PROVISIONS

  	
   

  	
  55

  
	
  Section 15.01

  	
   

  	
  Provisions Binding On Company’s Successors.

  	
   

  	
  55

  
	
  Section 15.02

  	
   

  	
  Official Acts By Successor Corporation.

  	
   

  	
  55

  
	
  Section 15.03

  	
   

  	
  Notices.

  	
   

  	
  55

  
	
  Section 15.04

  	
   

  	
  Governing Law.

  	
   

  	
  56

  

 

 iii
 

 

 

	
  Section 15.05

  	
   

  	
  Evidence Of Compliance With Conditions Precedent.

  	
   

  	
  56

  
	
  Section 15.06

  	
   

  	
  Business Days.

  	
   

  	
  57

  
	
  Section 15.07

  	
   

  	
  Trust Indenture Act To Control.

  	
   

  	
  57

  
	
  Section 15.08

  	
   

  	
  Table Of Contents, Headings, Etc.

  	
   

  	
  57

  
	
  Section 15.09

  	
   

  	
  Execution In Counterparts.

  	
   

  	
  57

  
	
  Section 15.10

  	
   

  	
  Manner Of Mailing Notice To Noteholders.

  	
   

  	
  57

  
	
  Section 15.11

  	
   

  	
  Approval By Trustee Of Expert Or Counsel.

  	
   

  	
  58

  
	
  Section 15.12

  	
   

  	
  Force Majeure.

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT A- Form of Global
  Note Prior to Release Date

  	
   

  	
   

  
	
  EXHIBIT B- Form of Note
  Prior to Release Date

  	
   

  	
   

  
	
  EXHIBIT C- Form of Global
  Note Following Release Date

  	
   

  	
   

  
	
  EXHIBIT D- Form of Note
  Following Release Date

  	
   

  	
   

  

 

 iv

THIS INDENTURE, dated as of June 1, 2006, between
CENTRAL ILLINOIS LIGHT COMPANY, a corporation duly organized and existing under
the laws of the State of Illinois (the “COMPANY”), and THE BANK OF NEW YORK
TRUST COMPANY, N.A., a national banking association, as trustee (the “TRUSTEE”).

WITNESSETH

WHEREAS, for its lawful corporate purposes, the
Company has duly authorized the execution and delivery of this Indenture to
provide for the issuance from time to time of its Notes (as hereinafter
defined), to be issued in series as in this Indenture provided;

WHEREAS, subject to the provisions of Section 4.11
hereof, the Company has issued two series of Senior Note First Mortgage Bonds
(as hereinafter defined) and has delivered both such series to the Trustee to
hold in trust for the benefit of the Holders (as hereinafter defined) from time
to time of a series of Notes (as hereinafter defined) issued hereunder in the
aggregate principal amount of $54,000,000 and titled the 6.20% Senior Secured
Notes due 2016 and in a series of Notes issued hereunder in the aggregate
principal amount of $42,000,000 and titled the 6.70% Senior Secured Notes due
2036, and, subject to the terms and provisions hereof, the Company may deliver
additional series of Senior Note First Mortgage Bonds to the Trustee for the
benefit of the respective Holders from time to time of the Notes or require the
Trustee to deliver to the Company, for cancellation, any and all Senior Note
First Mortgage Bonds held by the Trustee;

AND WHEREAS, all acts and things necessary to make
this Indenture a valid and legally binding agreement according to its terms
have been done and performed, and the execution of this Indenture and the issue
hereunder of the Notes have in all respects been duly authorized;

NOW THEREFORE, THIS INDENTURE WITNESSETH:

That in order to declare the terms and conditions upon
which the Notes are, and are to be authenticated, issued and delivered, and in
consideration of the premises, of the purchase and acceptance of the Notes by
the Holders thereof and of the sum of one dollar duly paid to it by the Trustee
at the execution of this Indenture, the receipt whereof is hereby acknowledged,
the Company covenants and agrees with the Trustee for the equal and
proportionate benefit of the respective Holders from time to time of the Notes,
as follows:

ARTICLE
I

DEFINITIONS

Section 1.01           General.  The terms defined in this Article I
(whether or not capitalized and except as herein otherwise expressly provided
or unless the context otherwise requires) for all purposes of this Indenture
and of any indenture supplemental hereto or Company Order (as hereinafter
defined) shall have the respective meanings specified in this Article I.

Section 1.02           Trust Indenture Act.  (a)  Whenever
this Indenture refers to a provision of the Trust Indenture Act of 1939 (the “TIA”),
such provision is incorporated by reference in and made a part of this
Indenture.

 

(b)          Unless
otherwise indicated, all terms used in this Indenture that are defined by the
TIA, defined by the TIA by reference to another statute or defined by a rule of
the Commission under the TIA shall have the meanings assigned to them in the
TIA or such statute or rule as in force on the date of execution of this
Indenture.

Section 1.03           Definitions. For purposes of this Indenture, the
following terms shall have the following meanings.

“AUTHENTICATING AGENT” shall mean any agent of the
Trustee which shall be appointed and acting pursuant to Section 9.15
hereof.

“AUTHORIZED AGENT” shall mean any agent of the Company
designated as such by an Officers’ Certificate delivered to the Trustee.

“BOARD OF DIRECTORS” shall mean the Board of Directors
of the Company or any duly authorized committee of such Board.

“BOARD RESOLUTION” shall mean a copy of a resolution
certified by the Secretary or an Assistant Secretary of the Company to have
been duly adopted by the Board of Directors and to be in full force and effect
on the date of such certification, and delivered to the Trustee.

“BUSINESS DAY” shall mean each Monday, Tuesday, Wednesday,
Thursday and Friday that is not a day on which banking institutions or trust
companies in the Borough of Manhattan, the City and State of New York, or in
the city where the corporate trust office of the Trustee is located, are
obligated or authorized by law or executive order to close.

“CAPITAL LEASE” shall mean any lease which has been or
would be capitalized on the books of the lessee in accordance with GAAP.

“CAPITALIZATION” shall mean the total of all the
following items appearing on, or included in, the consolidated balance sheet of
the Company:  (i) liabilities for
Debt (excluding debt relating to any securitization transaction authorized by
an order of the Illinois Commerce Commission pursuant to state legislation
authorizing such securitization) maturing more than twelve (12) months from the
date of determination; and (ii) common stock, preferred stock or other
preferred securities, premium on capital stock, capital surplus, capital in
excess of par value, and retained earnings (however the foregoing may be
designated), less, to the extent not otherwise deducted, the cost of shares of
capital stock of the Company held in its treasury. Subject to the foregoing,
Capitalization shall be determined in accordance with generally accepted
accounting principles and practices applicable to the type of business in which
the Company is engaged and that are approved by independent accountants
regularly retained by the Company, and may be determined as of a date not more
than sixty (60) days prior to the happening of an event for which such
determination is being made.

“COMMISSION” shall mean the United States Securities
and Exchange Commission, or if at any time hereafter the Commission is not
existing or performing the duties now assigned to it under the TIA, then the
body performing such duties.

 2
 

 

“COMPANY” shall mean the corporation named as the “Company”
in the first paragraph of this Indenture, and its successors and assigns
permitted hereunder.

“COMPANY ORDER” shall mean a written order or
certificate signed in the name of the Company by one of the Chairman, the
President, any Vice President (whether or not designated by a number or numbers
or a word or words added before or after the title “Vice President”), the Chief
Financial Officer, Treasurer or an Assistant Treasurer of the Company, and
delivered to the Trustee. At the Company’s option, a Company Order may take the
form of a supplemental indenture to this Indenture.

“CORPORATE TRUST OFFICE OF THE TRUSTEE”, or other
similar term, shall mean the corporate trust office of the Trustee, at which at
any particular time its corporate trust business shall be principally
administered, which office is at the date of the execution of this Indenture
located at 911 Washington Avenue, Suite 300, St. Louis, Missouri 63101.

“DEBT” shall mean any outstanding debt for money
borrowed of the Company evidenced by notes, debentures, bonds, or other
securities, or guarantees by the Company (without duplication) of any thereof.

“DEPOSITARY” shall mean, unless otherwise specified in
a Company Order pursuant to Section 2.05 hereof, The Depository Trust
Company, New York, New York (“DTC”), or any successor thereto registered and
qualified as a clearing agency under the Securities Exchange Act of 1934, or
other applicable statute or regulation.

“EVENT OF DEFAULT” shall mean any event specified in Section 8.01
hereof, continued for the period of time, if any, and after the giving of the
notice, if any, therein designated.

“EXPERT” shall mean any officer of the Company
familiar with the terms of the First Mortgage and this Indenture, any law firm,
any investment banking firm, or any other Person satisfactory in the reasonable
judgment of the Trustee.

“FIRST MORTGAGE” shall mean the Indenture of Mortgage
and Deed of Trust, dated as of April 1, 1933 between the Company and
Deutsche Bank Trust Company Americas (successor to Bankers Trust Company), as
trustee, as supplemented and amended from time to time.

“FIRST MORTGAGE BONDS” shall mean all first mortgage
bonds issued by the Company and outstanding under the First Mortgage, other
than Senior Note First Mortgage Bonds.

“GAAP” shall mean generally accepted accounting
principles in the United States of America as in effect on the date hereof,
applied on a basis consistent with those used in the preparation of any
financial statements referred to herein, unless otherwise stated herein.

“GLOBAL NOTE” shall mean a Note that, pursuant to Section 2.05
hereof, is issued to evidence Notes, that is delivered to the Depositary or
pursuant to the instructions of the Depositary and that shall be registered in
the name of the Depositary or its nominee.

 3
 

 

“INDENTURE” shall mean this instrument as originally
executed or, if amended or supplemented as herein provided, as so amended or
supplemented, and shall include the terms and provisions of a particular series
of Notes established pursuant to Section 2.05 hereof.

“INTEREST PAYMENT DATE”, when used with respect to any
Note, shall mean (a) each date designated as such for the payment of
interest on such Note specified in a Company Order pursuant to Section 2.05
hereof (provided that the first Interest Payment Date for such Note, the
Original Issue Date of which is after a Regular Record Date but prior to the
respective Interest Payment Date, shall be the Interest Payment Date following
the next succeeding Regular Record Date), (b) a date of Maturity of such
Note and (c) only with respect to defaulted interest on such Note, the
date established by the Trustee for the payment of such defaulted interest
pursuant to Section 2.11 hereof.

“LIEN” shall mean any mortgage, security interest,
pledge, lien or other encumbrance.

“MATURITY,” when used with respect to any Note, shall
mean the date on which the principal of such Note becomes due and payable as
therein or herein provided, whether at the Stated Maturity thereof or by
declaration of acceleration, redemption or otherwise.

“MORTGAGE TRUSTEE” shall mean the Person serving as
corporate trustee at the time under the First Mortgage.

“NOTE” or “NOTES” shall mean any Notes authenticated
and delivered under this Indenture, including any Global Note.

“NOTEHOLDER”, “HOLDER OF NOTES” or “HOLDER” shall mean
any Person in whose name at the time a particular Note is registered on the
books of the Trustee kept for that purpose in accordance with the terms hereof.

“OFFICERS’ CERTIFICATE” when used with respect to the
Company, shall mean a certificate signed by one of the Chairman, the President
or any Vice President (whether or not designated by a number or numbers or a
word or words added before or after the title “Vice President”), and by the
Chief Financial Officer, Treasurer, any Assistant Treasurer, the Secretary or
an Assistant Secretary of the Company; provided, that no individual shall be
entitled to sign in more than one capacity.

“OPERATING PROPERTY” shall mean (i) any interest
in real property owned by the Company and (ii) any asset owned by the
Company that is depreciable in accordance with GAAP, excluding, in either case,
any interest of the Company as lessee under a Capital Lease (except for a lease
that results from a Sale and Lease-Back Transaction).

“OPINION OF COUNSEL” shall mean an opinion in writing
signed by legal counsel, who may be an employee of the Company, meeting the
applicable requirements of Section 15.05 hereof. If the Indenture requires
the delivery of an Opinion of Counsel to the Trustee, the text and substance of
which has been previously delivered to the Trustee, the Company may satisfy
such requirement by the delivery by the legal counsel that delivered such
previous Opinion of Counsel of a letter to the Trustee to the effect that the
Trustee may rely on such previous Opinion of Counsel as if such Opinion of
Counsel was dated and delivered the date delivery of such 

 4
 

 

Opinion of Counsel is
required. Any Opinion of Counsel may contain reasonable conditions and
qualifications.

“ORIGINAL ISSUE DATE” shall mean for a Note, or
portions thereof, the date upon which it, or such portion, was issued by the
Company pursuant to this Indenture and authenticated by the Trustee (other than
in connection with a transfer, exchange or substitution).

“OUTSTANDING”, when used with reference to Notes,
shall, subject to Section 10.04 hereof, mean, as of any particular time,
all Notes authenticated and delivered by the Trustee under this Indenture,
except

(a)           Notes
theretofore cancelled by the Trustee or delivered to the Trustee for
cancellation;

(b)           Notes,
or portions thereof, for the payment or redemption of which moneys in the
necessary amount shall have been deposited in trust with the Trustee or with
any paying agent (other than the Company), provided that if such Notes
are to be redeemed prior to the Stated Maturity thereof, irrevocable notice of
such redemption shall have been given as provided in Article III, or
provisions satisfactory to the Trustee shall have been made for giving such
notice;

(c)           Notes,
or portions thereof, that have been paid and discharged or are deemed to have
been paid and discharged pursuant to the provisions of this Indenture; and

(d)           Notes
in lieu of or in substitution for which other Notes shall have been
authenticated and delivered, or which have been paid, pursuant to Section 2.07
hereof.

“PERIODIC OFFERING” means an offering of Notes of a
series from time to time the specific terms of which Notes, including without
limitation the rate or rates of interest, if any, thereon, the Stated Maturity
or Maturities thereof and the redemption provisions, if any, with respect
thereto, are to be determined by the Company or its agents upon the issuance of
such Notes.

“PERSON” shall mean any individual, corporation,
company partnership, joint venture, limited liability company, association,
joint-stock company, trust, unincorporated organization or government or any
agent or political subdivision thereof.

“PRINCIPAL EXECUTIVE OFFICES OF THE COMPANY” shall
mean 300 Liberty Street, Peoria, Illinois 61602, or such other place where the
main corporate offices of the Company are located as designated in writing to
the Trustee by an Authorized Agent.

“REGULAR RECORD DATE” shall mean, unless otherwise
specified in a Company Order pursuant to Section 2.05 hereof, for an
Interest Payment Date for a particular Note (except for an Interest Payment
Date with respect to defaulted interest on such Note) (a) the fifteenth day
next preceding each Interest Payment Date (unless the Interest Payment Date is
the date of Maturity of such Note, in which event, the Regular Record Date
shall be as described in clause (b) hereof) and (b) the date of
Maturity of such Note.

 5
 

 

“RELATED SERIES OF NOTES” shall mean, when used in
reference to the First Mortgage Bonds, Senior Notes Series AA, the Company’s
6.20% Senior Secured Notes due 2016, and, when used in reference to the First
Mortgage Bonds, Senior Notes Series BB, the Company’s 6.70% Senior Secured
Notes due 2036, and, when used in reference to another series of Senior Note
First Mortgage Bonds, shall mean the series of Notes in respect of which such
series of Senior Note First Mortgage Bonds were delivered to the Trustee
pursuant to Section 4.09 hereof upon the initial authentication and
issuance of such series of Notes pursuant to Section 2.05 hereof.

“RELATED SERIES OF SENIOR NOTE FIRST MORTGAGE BONDS”
shall mean, when used in reference to the Company’s 6.20% Senior Secured Notes
due 2016, the First Mortgage Bonds, Senior Notes Series AA, and, when used
in reference to the Company’s 6.70% Senior Secured Notes due 2036, the First
Mortgage Bonds, Senior Notes Series BB, and, when used in reference to any
other series of Notes, shall mean the series of Senior Note First Mortgage
Bonds delivered to the Trustee pursuant to Section 4.09 hereof in
connection with the initial authentication and issuance of such series of Notes
pursuant to Section 2.05 hereof.

“RELEASE DATE” shall mean the date as of which all
First Mortgage Bonds have been retired through payment, redemption, or
otherwise at, before or after the maturity thereof.

“RESPONSIBLE OFFICER” or “RESPONSIBLE OFFICERS” when
used with respect to the Trustee shall mean one or more of the following: any
vice president, any assistant vice president, any assistant treasurer, any
trust officer, any assistant trust officer, or any other officer or assistant
officer of the Trustee customarily performing functions similar to those
performed by the persons who at the time shall be such officers, respectively,
or to whom any corporate trust matter is referred because of his or her
knowledge of and familiarity with the particular subject and who shall have
direct responsibility for the administration of this Indenture.

“SALE AND LEASE-BACK TRANSACTION” shall mean any
arrangement with any Person providing for the leasing to the Company of any
Operating Property (except for leases for a term, including any renewal
thereof, of not more than forty-eight (48) months), which Operating
Property has been or is to be sold or transferred by the Company to such
Person; provided, however, Sale and Lease-Back Transaction shall
not include any arrangement first entered into prior to the date of this
Indenture.

“SENIOR NOTE FIRST MORTGAGE BONDS” shall mean the
First Mortgage Bonds, Senior Notes Series AA and the First Mortgage Bonds
Senior Notes Series BB issued by the Company pursuant to the Supplemental
Indenture to the First Mortgage dated as of June 1, 2006 and any other
first mortgage bonds issued by the Company under the First Mortgage pursuant to
supplemental indentures to the First Mortgage and delivered to the Trustee
pursuant to Section 4.09 hereof.

 “SPECIAL RECORD
DATE” shall mean, with respect to any Note, the date established by the Trustee
in connection with the payment of defaulted interest on such Note pursuant to Section 2.11
hereof.

 6
 

 

“STATED MATURITY” shall mean with respect to any Note,
the last date on which principal on such Note becomes due and payable as
therein or herein provided, other than by declaration of acceleration or
redemption.

“TRUSTEE” shall mean The Bank of New York Trust
Company, N.A. and, subject to Article IX, shall also include any successor
Trustee.

“U.S. GOVERNMENT OBLIGATIONS” shall mean (i) direct
non-callable obligations of, or non-callable obligations guaranteed as to
timely payment of principal and interest by, the United States of America or
obligations of a person controlled or supervised by and acting as an agency or
instrumentality thereof for the payment of which obligations or guarantees the
full faith and credit of the United States is pledged or (ii) certificates
or receipts representing direct ownership interests in obligations or specified
portions (such as principal or interest) of obligations described in clause (i) above,
which obligations are held by a custodian in safekeeping in a manner
satisfactory to the Trustee.

“VALUE” shall mean, with respect to a Sale and Lease-Back
Transaction, as of any particular time, the amount equal to the greater of (i) the
net proceeds to the Company from the sale or transfer of the property leased
pursuant to such Sale and Lease-Back Transaction and (ii) the net
book value of such property, as determined in accordance with generally
accepted accounting principles by the Company at the time of entering into such
Sale and Lease-Back Transaction, in either case multiplied by a fraction,
the numerator of which shall be equal to the number of full years of the term
of the lease that is part of such Sale and Lease-Back Transaction
remaining at the time of determination and the denominator of which shall be
equal to the number of full years of such term, without regard, in any case, to
any renewal or extension options contained in such lease.

ARTICLE
II

FORM,
ISSUE, EXECUTION, REGISTRATION AND

EXCHANGE OF NOTES

Section 2.01           Forms Generally.  (a)  If the Notes
are in the form of a Global Note they shall be in substantially the form set
forth in Exhibit A (or, following the Release Date, Exhibit C) to
this Indenture, and, if the Notes are not in the form of a Global Note, they
shall be in substantially the form set forth in Exhibit B (or, following
the Release Date, Exhibit D) to this Indenture, or, in any case, in such
other form as shall be established by a Company Order pursuant to Section 2.05(c) hereof,
or in one or more indentures supplemental hereto, in each case with such
appropriate insertions, omissions, substitutions and other variations as are
required or permitted by this Indenture, and may have such letters, numbers or
other marks of identification and such legends or endorsements placed thereon
as may be required to comply with applicable rules of any securities
exchange or of the Depositary or with applicable law or as may, consistently
herewith, be determined by the officers executing such Notes, as evidenced by
their execution of such Notes.

 7
 

 

(b)           The
definitive Notes shall be typed, printed, lithographed or engraved on steel
engraved borders or may be produced in any other manner, all as determined by
the officers executing such Notes, as evidenced by their execution of such
Notes.

Section 2.02           Form Of Trustee’s Certificate Of Authentication.
The Trustee’s certificate of authentication on all Notes shall be in
substantially the following form:

Trustee’s Certificate of
Authentication

This Note is one of the
Notes of the series herein designated, described or provided for in the
within-mentioned Indenture.

	
  

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

  
	
   

  	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated:

  

 

Section 2.03           Amount Unlimited. The aggregate principal amount of
Notes that may be authenticated and delivered under this Indenture is
unlimited, subject to compliance with the provisions of this Indenture.

Section 2.04           Denominations, Dates, Interest Payment And Record Dates.
(a) The Notes of each series shall be issuable in registered form without
coupons in denominations of $1,000 and integral multiples thereof or such other
amount or amounts as may be authorized by the Board of Directors in a Board
Resolution or a Company Order pursuant to a Board Resolution or in one or more
indentures supplemental hereto; provided, that the principal amount of a
Global Note shall not exceed $500,000,000 unless otherwise permitted by the
Depositary.

(b)           Each
Note shall be dated and issued as of the date of its authentication by the
Trustee, and shall bear an Original Issue Date; each Note issued upon transfer,
exchange or substitution of a Note shall bear the Original Issue Date or Dates
of such transferred, exchanged or substituted Note, subject to the provisions
of Section 2.13(d) hereof.

(c)           Each
Note shall accrue interest from the later of (1) its Original Issue Date
or the date specified in such Note and (2) the most recent date to which
interest has been paid or duly provided for with respect to such Note until the
principal of such Note is paid or made available for payment, and interest on
each Note shall be payable on each Interest Payment Date after the Original
Issue Date.

(d)           Each
Note shall mature on a Stated Maturity specified in the Note. The principal
amount of each outstanding Note shall be payable on the Stated Maturity date
specified therein.

(e)           Unless
otherwise specified in a Company Order pursuant to Section 2.05 hereof,
interest on each of the Notes shall be calculated on the basis of a 360-day
year of twelve 

 8
 

 

30-day months (and
for any partial periods shall be calculated on the basis of the number of days
elapsed in a 360-day year of twelve 30-day months) and shall be
computed at a fixed rate until the Stated Maturity of such Notes. The method of
computing interest on any Notes not bearing a fixed rate of interest shall be
set forth in a Company Order pursuant to Section 2.05 hereof. Unless
otherwise specified in a Company Order pursuant to Section 2.05 hereof,
principal, interest and premium on the Notes shall be payable in the currency
of the United States.

(f)            Except
as provided in the following sentence, the Person in whose name any Note is
registered at the close of business on any Regular Record Date or Special
Record Date with respect to an Interest Payment Date for such Note shall be
entitled to receive the interest payable on such Interest Payment Date
notwithstanding the cancellation of such Note upon any registration of
transfer, exchange or substitution of such Note subsequent to such Regular
Record Date or Special Record Date and prior to such Interest Payment Date. Any
interest payable at Maturity shall be paid to the Person to whom the principal
of such Note is payable.

(g)           So
long as the Trustee is the registrar and paying agent, the Trustee shall, as
soon as practicable but no later than the Regular Record Date preceding each
applicable Interest Payment Date, provide to the Company a list of the
principal, interest and premium to be paid on Notes on such Interest Payment
Date. The Trustee shall assume responsibility for withholding taxes on interest
paid as required by law except with respect to any Global Note.

Section 2.05           Execution, Authentication, Delivery And Dating.

(a)           The
Notes shall be executed on behalf of the Company by one of its Chairman,
President, any Vice President (whether or not designated by a number or numbers
or a word or words added before or after the title “Vice President”), the Chief
Financial Officer, Treasurer or an Assistant Treasurer of the Company and
attested by the Secretary or an Assistant Secretary of the Company. The
signature of any of these officers on the Notes may be manual or facsimile. Typographical
and other minor errors or defects in any such signature shall not affect the
validity or enforceability of any Note that has been duly authenticated and
delivered by the Trustee.

(b)           Notes
bearing the manual or facsimile signatures of individuals who were at the time
of execution the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Notes or did not hold
such offices at the date of such Notes.

(c)           At
any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Notes of any series executed by the Company
to the Trustee for authentication, together with or preceded by one or more
Company Orders for the authentication and delivery of such Notes, and the
Trustee in accordance with any such Company Order shall authenticate and make
available for delivery such Notes; provided, however, that, with respect to
Notes of a series subject to a Periodic Offering, (A) such Company Order
may be delivered by the Company to the Trustee prior to the delivery to the
Trustee of such Notes for authentication and delivery, (B) the Trustee
shall authenticate and deliver Notes of such series for original issue from
time to time, in an aggregate principal amount not 

 9
 

 

exceeding the aggregate
principal amount established for such series, all pursuant to a further Company
Order or pursuant to such procedures acceptable to the Trustee as may be
specified from time to time by such further Company Order, (C) the Stated
Maturity or Maturities, Original Issue Date or Dates, interest rate or rates
and any other terms of Notes of such series shall be determined by such further
Company Order or pursuant to such procedures and (D) if provided for in
such procedures, such Company Order may authorize authentication and delivery
pursuant to oral or electronic instructions from the Company or its duly
authorized agent or agents, which oral instructions shall be promptly confirmed
in writing. Such Company Order shall specify the following with respect to each
series of Notes: (i) the title of the Notes of such series (which shall
distinguish the Notes of such series from Notes of all other series) and any
limitations on the aggregate principal amount of the Notes to be issued as part
of such series, (ii) the Original Issue Date for such series, (iii) the
Stated Maturity of Notes of such series, (iv) the interest rate or rates,
or method of calculation of such rate or rates, for such series and the date
from which such interest will accrue, (v) the terms, if any, regarding the
optional or mandatory redemption of such series, including redemption date or
dates of such series, if any, and the price or prices applicable to such
redemption, (vi) whether or not the Notes of such series shall be issued
in whole or in part in the form of a Global Note and, if so, the Depositary for
such Global Note if not DTC, (vii) if the form of the Notes of such series
is not as described in Exhibit A, Exhibit B, Exhibit C or Exhibit D
hereto, the form of the Notes of such series, (viii) the maximum annual
interest rate, if any, of the Notes permitted for such series, (ix) the
period or periods within which, the price or prices at which and the terms and
conditions upon which such series may be repaid, in whole or in part, at the
option of the Holder thereof, (x) if prior to the Release Date, the
designation of the Related Series of Senior Note First Mortgage Bonds
being delivered to the Trustee in connection with the issuance of such series
of Notes, (xi) the establishment of any office or agency pursuant to Section 6.02
hereof, and (xii) any other terms of such series not inconsistent with this
Indenture. With respect to Notes of a series subject to a Periodic Offering,
such Company Order may provide general terms or parameters for Notes of such
series and provide either that the specific terms of particular Notes of such
series shall be specified in a further Company Order or that such terms shall
be determined by the Company or its agents in accordance with such further
Company Order as contemplated by the proviso of the first sentence of this Section 2.05(c).
Prior to authenticating Notes of any series, and in accepting the additional
responsibilities under this Indenture in relation to such Notes, the Trustee
shall receive from the Company the following at or before the issuance of such
series of Notes, and (subject to Section 9.01 hereof) shall be fully
protected in relying upon, unless and until such documents have been superseded
or revoked prior to such issuance:

(1)           A
Board Resolution authorizing such Company Order or Orders and, if the form of
Notes is established by a Board Resolution or a Company Order pursuant to a
Board Resolution, a copy of such Board Resolution;

(2)           At
the option of the Company, either an Opinion of Counsel or a letter addressed
to the Trustee permitting it to rely on an Opinion of Counsel, stating
substantially the following subject to customary qualifications and exceptions:

(A)          if
the form of such Notes has been established by or pursuant to a Board
Resolution, a Company Order pursuant to a Board 

 10
 

 

Resolution, or in a
supplemental indenture as permitted by Section 2.01 hereof, that such form
has been established in conformity with this Indenture;

(B)           that
the Indenture has been duly authorized, executed and delivered by the Company
and constitutes a valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms, except as may be limited by
applicable bankruptcy, insolvency, reorganization, fraudulent conveyance,
moratorium or similar laws of general application relating to or affecting the
enforcement of creditors’ rights, the application of general principles of
equity (regardless of whether such application is made in a proceeding at law
or in equity) and by an implied covenant of good faith and fair dealing and
except as enforcement of provisions of the Indenture may be limited by state
laws affecting the remedies for the enforcement of the security provided for in
the Indenture;

(C)           if
prior to the Release Date, that the Related Series of Senior Note First
Mortgage Bonds being delivered to the Trustee in connection with the issuance
of such series of Notes have been duly authorized, executed and delivered, and
that such Senior Note First Mortgage Bonds are valid and binding obligations of
the Company, enforceable against the Company in accordance with their terms,
except as may be limited by applicable bankruptcy, insolvency, reorganization,
fraudulent conveyance, moratorium or similar laws of general application
relating to or affecting the enforcement of creditors’ rights and the
application of general principles of equity (regardless of whether such
application is made in a proceeding at law or in equity) and by an implied
covenant of good faith and fair dealing and except as enforcement of provisions
thereof may be limited by state laws affecting the remedies for the enforcement
of the security provided for in the First Mortgage; and that such Senior Note
First Mortgage Bonds are entitled to the benefit of the First Mortgage, equally
and ratably, with all First Mortgage Bonds and other Senior Note First Mortgage
Bonds (if any) outstanding thereunder, except as to sinking fund provisions;

(D)          that
this Indenture and, if prior to the Release Date, the First Mortgage are
qualified to the extent required under the TIA;

(E)           that
such Notes have been duly authorized and executed by the Company, and when
authenticated by the Trustee and issued by the Company in the manner and
subject to any conditions specified in such Opinion of Counsel, will constitute
valid and binding obligations of the Company, enforceable against the Company
in accordance with their terms, except as may be limited by applicable
bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or
similar laws of general application relating to or affecting the enforcement of
creditors’ rights, the application of general principles of equity (regardless
of whether such application is made in a proceeding at law or in equity) and by
an implied covenant of good faith and fair dealing and except as enforcement of
provisions of this Indenture may be limited by state laws affecting the
remedies for the enforcement of the security provided for in this Indenture;

 11

 

(F)           that
the issuance of such Notes and, if prior to the Release Date, the delivery by
the Company of the Related Series of Senior Note First Mortgage Bonds in
connection therewith will not result in any default under this Indenture or (if
applicable) the First Mortgage;

(G)           that
all consents or approvals of the Illinois Commerce Commission (or any successor
agency) and of any other federal or state regulatory agency required in
connection with the Company’s execution and delivery of this Indenture, such Notes
and any Senior Note First Mortgage Bonds have been obtained and are in full
force and effect (except that no statement need be made with respect to state
securities laws);

(H)          if
prior to the Release Date, that the First Mortgage and all financing statements
have been duly filed and recorded in all places where such filing or recording
is necessary for the perfection or preservation of the lien of the First
Mortgage, and the First Mortgage constitutes a valid and perfected first lien
upon the property purported to be covered thereby, subject only to [“excepted
encumbrances”] (as defined in the First Mortgage) and to liens upon the
property, if any, specifically identified in the supplemental indenture related
to a Related Series of Senior Note First Mortgage Bonds prior to its
recordation; and

(I)            that
all conditions that must be met by the Company to issue Notes under this
Indenture have been met.

(3)           If
prior to the Release Date, the certificate of an Expert meeting the
requirements of Section 4.06(a) hereof and a series of Senior Note
First Mortgage Bonds meeting the requirements of Section 4.10 hereof.

(4)           An
Officers’ Certificate stating that (i) the Company is not, and upon the
authentication by the Trustee of such Notes, will not be in default under any
of the terms or covenants contained in this Indenture, (ii) all conditions
that must be met by the Company to issue Notes under this Indenture have been
met, and (iii) if prior to the Release Date, the Related Series of
Senior Note First Mortgage Bonds being delivered to the Trustee meets the
requirements of Section 4.10 hereof.

(d)           No
Note shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose unless there appears on such Note a certificate of
authentication substantially in the form provided for herein executed by the
Trustee by the manual signature of an authorized officer, and such certificate
upon any Note shall be conclusive evidence, and the only evidence, that such
Note has been duly authenticated and delivered hereunder and is entitled to the
benefits of this Indenture.

(e)           If
all Notes of a series are not to be authenticated and issued at one time in
connection with a Periodic Offering, the Company shall not be required to
deliver the Company Order, Board Resolution, certificate of an Expert, Senior
Note First Mortgage Bonds, Officers’ Certificate and Opinion of Counsel
(including any of the foregoing that would be otherwise required pursuant to Section 15.05
hereof) described in Section 2.05(c) hereof at or prior to the

 12
 

 

authentication of each
Note of such series, if such items are delivered at or prior to the time of
authentication of the first Note of such series to be authenticated and issued.

Section 2.06           Exchange And Registration Of Transfer Of Notes.  (a) 
Subject to Section 2.13 hereof, Notes of any series may be exchanged for
one or more new Notes of the same series of any authorized denominations and of
a like aggregate principal amount, series and Stated Maturity and having the
same terms and Original Issue Date. Notes to be exchanged shall be surrendered
at any of the offices or agencies to be maintained pursuant to Section 6.02
hereof, and the Trustee shall authenticate and deliver in exchange therefor the
Note or Notes of such series which the Noteholder making the exchange shall be
entitled to receive.

(b)           The
Trustee shall keep, at one of said offices or agencies, a register or registers
in which, subject to such reasonable regulations as it may prescribe, the
Trustee shall register or cause to be registered Notes and shall register or
cause to be registered the transfer of Notes as in this Article II
provided. Such register shall be in written form or in any other form capable
of being converted into written form within a reasonable time. At all
reasonable times, upon reasonable prior written notice, such register shall be
open for inspection by the Company. Upon due presentment for registration of
transfer of any Note at any such office or agency, the Company shall execute
and the Trustee shall register, authenticate and deliver in the name of the
transferee or transferees one or more new Notes of any authorized denominations
and of a like aggregate principal amount, series and Stated Maturity and having
the same terms and Original Issue Date.

(c)           All
Notes presented for registration of transfer or for exchange, redemption or
payment shall be duly endorsed by, or be accompanied by a written instrument or
instruments of transfer in form satisfactory to the Company and the Trustee and
duly executed by the Holder or the attorney in fact of such Holder duly
authorized in writing.

(d)           No
service charge shall be made for any exchange or registration of transfer of
Notes, but the Company may require payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in connection therewith.

(e)           The
Trustee shall not be required to exchange or register the transfer of any Notes
selected, called or being called for redemption (including Notes, if any,
redeemable at the option of the Holder provided such Notes are then redeemable
at such Holder’s option) except, in the case of any Note to be redeemed in
part, the portion thereof not to be so redeemed.

(f)            If
the principal amount, and applicable premium, of part, but not all of a Global
Note is paid, then upon surrender to the Trustee of such Global Note, the
Company shall execute, and the Trustee shall authenticate, deliver and
register, a Global Note in an authorized denomination in aggregate principal
amount equal to, and having the same terms, Original Issue Date and series as,
the unpaid portion of such Global Note.

Section 2.07           Mutilated, Destroyed, Lost Or Stolen Notes.  (a) 
If any temporary or definitive Note shall become mutilated or be destroyed,
lost or stolen, the Company shall execute, and upon its written request the
Trustee shall authenticate and deliver, a new Note of like form and principal
amount and having the same terms and Original Issue Date and bearing a

 13
 

 

number not contemporaneously outstanding, in exchange and substitution
for the mutilated Note, or in lieu of and in substitution for the Note so
destroyed, lost or stolen. In every case the applicant for a substituted Note
shall furnish to the Company, the Trustee and any paying agent or
Authenticating Agent such security or indemnity as may be required by them to
save each of them harmless, and, in every case of destruction, loss or theft of
a Note, the applicant shall also furnish to the Company and to the Trustee
evidence to their satisfaction of the destruction, loss or theft of such Note
and of the ownership thereof.

(b)           The
Trustee shall authenticate any such substituted Note and deliver the same upon
the written request or authorization of any officer of the Company. Upon the
issuance of any substituted Note, the Company may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses connected therewith. If any Note which
has matured, is about to mature or has been called for redemption shall become
mutilated or be destroyed, lost or stolen, the Company may, instead of issuing
a substituted Note, pay or authorize the payment of the same (without surrender
thereof except in the case of a mutilated Note) if the applicant for such
payment shall furnish to the Company, the Trustee and any paying agent or
Authenticating Agent such security or indemnity as may be required by them to
save each of them harmless and, in case of destruction, loss or theft, evidence
satisfactory to the Company and the Trustee of the destruction, loss or theft
of such Note and of the ownership thereof.

(c)           Every
substituted Note issued pursuant to this Section 2.07 by virtue of the
fact that any Note is mutilated, destroyed, lost or stolen shall constitute an
additional contractual obligation of the Company, whether or not such
destroyed, lost or stolen Note shall be found at any time, and shall be
entitled to all the benefits of this Indenture equally and proportionately with
any and all other Notes duly issued hereunder. All Notes shall be held and
owned upon the express condition that, to the extent permitted by law, the
foregoing provisions are exclusive with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Notes and shall preclude to the full
extent permitted by applicable law any and all other rights or remedies with
respect to the replacement or payment of negotiable instruments or other
securities without their surrender.

Section 2.08           Temporary Notes.  Pending the preparation of
definitive Notes of any series, the Company may execute and the Trustee shall
authenticate and deliver temporary Notes (printed, lithographed or otherwise
reproduced). Temporary Notes shall be issuable in any authorized denomination
and substantially in the form of the definitive Notes but with such omissions,
insertions and variations as may be appropriate for temporary Notes, all as may
be determined by the Company. Every such temporary Note shall be authenticated
by the Trustee upon the same conditions and in substantially the same manner,
and with the same effect, as the definitive Notes. Without unreasonable delay
the Company shall execute and shall deliver to the Trustee definitive Notes of
such series and thereupon any or all temporary Notes of such series shall be
surrendered in exchange therefor at the corporate trust office of the Trustee,
and the Trustee shall authenticate, deliver and register in exchange for such
temporary Notes an equal aggregate principal amount of definitive Notes of such
series. Such exchange shall be made by the Company at its own expense and
without any charge therefor to the Noteholders. Until so exchanged, the
temporary Notes of such series shall in all respects be entitled to the same

 14
 

 

benefits under this Indenture as definitive Notes of such series
authenticated and delivered hereunder.

Section 2.09           Cancellation Of Notes Paid, Etc.  All Notes
surrendered for the purpose of payment, redemption, exchange or registration of
transfer shall be surrendered to the Trustee for cancellation and promptly
cancelled by it and no Notes shall be issued in lieu thereof except as
expressly permitted by this Indenture. The Company shall surrender to the
Trustee any Notes so acquired by it and such Notes shall be cancelled by the Trustee.
No Notes shall be authenticated in lieu of or in exchange for any Notes so
cancelled.

Section 2.10           Interest Rights Preserved.  Each Note
delivered under this Indenture upon transfer of or in exchange for or in lieu
of any other Note shall carry all the rights to interest accrued and unpaid,
and to accrue, which were carried by such other Note, and each such Note shall
be so dated that neither gain nor loss of interest shall result from such
transfer, exchange or substitution.

Section 2.11           Special Record Date.  If and to the extent
that the Company fails to make timely payment or provision for timely payment
of interest on any series of Notes (other than on an Interest Payment Date that
is a Maturity date), that interest shall cease to be payable to the Persons who
were the Noteholders of such series at the applicable Regular Record Date. In
that event, when moneys become available for payment of the interest, the
Trustee shall (a) establish a date of payment of such interest and a
Special Record Date for the payment of that interest, which Special Record Date
shall be not more than 15 or fewer than 10 days prior to the date of the
proposed payment and (b) mail notice of the date of payment and of the
Special Record Date not fewer than 10 days preceding the Special Record Date to
each Noteholder of such series at the close of business on the 15th day
preceding the mailing at the address of such Noteholder, as it appeared on the
register for the Notes. On the day so established by the Trustee the interest
shall be payable to the Holders of the applicable Notes at the close of
business on the Special Record Date.

Section 2.12           Payment Of Notes.  Payment of the principal of
and interest and premium on all Notes shall be payable as follows:

(a)           On
or before 9:30 a.m., New York City time, or such other time as shall be
agreed upon between the Trustee and the Company, of the day on which payment of
principal, interest and premium is due on any Global Note pursuant to the terms
thereof, the Company shall deliver to the Trustee funds available on such date
sufficient to make such payment, by wire transfer of immediately available
funds or by instructing the Trustee to withdraw sufficient funds from an
account maintained by the Company with the Trustee or such other method as is
acceptable to the Trustee. On or before 12:00 noon, New York City time, or such
other time as shall be agreed upon between the Trustee and the Depositary, of
the day on which any payment of interest is due on any Global Note (other than
at Maturity), the Trustee shall pay to the Depositary such interest in same day
funds. On or before 1:00 p.m., New York City time or such other time as
shall be agreed upon between the Trustee and the Depositary, of the day on
which principal, interest payable at Maturity and premium, if any, is due on
any Global Note, the Trustee shall deposit with the Depositary the amount equal
to the principal, interest payable at Maturity and premium, if any, by wire
transfer into the account specified by the Depositary. As a

 15
 

 

condition to the payment,
at Maturity, of any part of the principal of, interest on and applicable
premium of any Global Note, the Depositary shall surrender, or cause to be
surrendered, such Global Note to the Trustee, whereupon a new Global Note shall
be issued to the Depositary pursuant to Section 2.06(f) hereof.

(b)           With
respect to any Note that is not a Global Note, principal, applicable premium
and interest due at the Maturity of the Note shall be payable in immediately
available funds when due upon presentation and surrender of such Note at the
corporate trust office of the Trustee or at the authorized office of any paying
agent in the Borough of Manhattan, The City and State of New York. Interest on
any Note that is not a Global Note (other than interest payable at Maturity)
shall be paid by check payable in clearinghouse funds mailed to the Holder
thereof at such Holder’s address as it appears on the register; provided
that if the Trustee receives a written request from any Holder of Notes, the aggregate
principal amount of which having the same Interest Payment Date equals or
exceeds $10,000,000, on or before the applicable Regular Record Date for such
Interest Payment Date, interest on such Note shall be paid by wire transfer of
immediately available funds to a bank within the continental United States
designated by such Holder in its request or by direct deposit into the account
of such Holder designated by such Holder in its request if such account is
maintained with the Trustee or any paying agent.

(c)           The
Trustee shall receive the Senior Note First Mortgage Bonds from the Company as
provided in this Indenture and shall hold the Senior Note First Mortgage Bonds,
and any and all sums payable thereon or with respect thereto or realized
therefrom, in trust for the benefit of the holders of the Notes, as herein
provided. Subject to Article XIII hereof, all payments made by or on
behalf of the Company to the Trustee on a series of Senior Note First Mortgage
Bonds shall be deemed to be a payment by the Company pursuant to this Section 2.12
and shall be applied by the Trustee to pay, when due, principal of, premium, if
any, and/or interest on the Related Series of Notes and, to the extent so
applied, shall satisfy the Company’s obligations on such Notes. The Company
shall cause payment to be made to the Trustee of principal of, premium, if any,
and (if applicable) interest on a series of Senior Note First Mortgage Bonds in
a manner and at a time that will enable the Trustee to make payments when due,
of the principal of, premium, if any, and interest on the Related Series of
Notes.

Section 2.13           Notes Issuable In The Form Of A Global Note.  (a) 
If the Company shall establish pursuant to Section 2.05 hereof that the
Notes of a particular series are to be issued in the form of one or more Global
Notes, then the Company shall execute and the Trustee shall, in accordance with
Section 2.05 hereof and the Company Order delivered to the Trustee
thereunder, authenticate and deliver such Global Note or Notes, which, unless
otherwise specified in such Company Order, (i) shall represent, shall be
denominated in an amount equal to the aggregate principal amount of, and shall
have the same terms as, the outstanding Notes of such series to be represented
by such Global Note or Notes, (ii) shall be registered in the name of the
Depositary or its nominee, (iii) shall be delivered by the Trustee to the
Depositary or pursuant to the Depositary’s instruction and (iv) shall bear
a legend substantially to the following effect: “This Note is a Global Note
registered in the name of the Depositary (referred to herein) or a nominee
thereof and, unless and until it is exchanged in whole for the individual Notes
represented hereby as provided in the Indenture referred to below, this Global
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

 16
 

 

to a successor Depositary or a nominee of such successor Depositary.
Unless this Global Note is presented by an authorized representative of The
Depository Trust Company (55 Water Street, New York, New York) to the Trustee
for registration of transfer, exchange or payment, and any certificate issued
is registered in the name of Cede & Co. or such other name as
requested by an authorized representative of The Depository Trust Company and
any payment is made to Cede & Co., any transfer, pledge or other use
hereof for value or otherwise by or to any person is wrongful since the
registered owner hereof, Cede & Co., has an interest herein” or such
other legend as may be required by the rules and regulations of the
Depositary.

(b)           (i)            If at any time the Depositary for a
Global Note notifies the Company that it is unwilling or unable to continue as
Depositary for such Global Note or if at any time the Depositary for the Global
Note shall no longer be eligible or in good standing under the Securities
Exchange Act of 1934, or other applicable statute or regulation, the Company
shall appoint a successor Depositary with respect to such Global Note. If a
successor Depositary for such Global Note is not appointed by the Company
within 90 days after the Company receives such notice or becomes aware of such
ineligibility, the Company’s election pursuant to Section 2.05(c)(vi) hereof
shall no longer be effective with respect to the series of Notes evidenced by
such Global Note and the Company shall execute, and the Trustee, upon receipt
of a Company Order for the authentication and delivery of individual Notes of
such series in exchange for such Global Note, shall authenticate and deliver,
individual Notes of such series of like tenor and terms in definitive form in
an aggregate principal amount equal to the principal amount of such Global Note
in exchange for such Global Note. The Trustee shall not be charged with
knowledge or notice of the ineligibility of a Depositary unless a Responsible
Officer shall have actual knowledge thereof.

(ii)                                 (A)          The Company may at any time and in its
sole discretion determine that all (but not less than all) outstanding Notes of
a series issued or issuable in the form of one or more Global Notes shall no
longer be represented by such Global Note or Notes. In such event the Company
shall execute, and the Trustee, upon receipt of a Company Order for the
authentication and delivery of individual Notes in exchange for such Global
Note, shall authenticate and deliver individual Notes of like tenor and terms
in definitive form in an aggregate principal amount equal to the principal
amount of such Global Note or Notes in exchange for such Global Note or Notes.

(B)           Within seven days after the
occurrence of an Event of Default with respect to any series of Global Notes,
the Company shall execute, and the Trustee shall authenticate and deliver,
Notes of such series in definitive registered form in any authorized
denominations and in aggregate principal amount equal to the principal amount
of such Global Notes in exchange for such Global Notes.

(iii)              In any exchange provided for in
any of the preceding two paragraphs, the Company will execute and the Trustee
will authenticate and deliver individual Notes in definitive registered form in
authorized denominations. Upon the exchange of a Global Note for individual
Notes, such Global Note shall be cancelled by the Trustee. Notes issued in
exchange for a Global Note pursuant to this Section shall be registered in
such names and in such authorized denominations as the Depositary for such

 17
 

 

Global Note, pursuant to
instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee. The Trustee shall deliver such Notes to the Depositary
for delivery to the persons in whose names such Notes are so registered, or if
the Depositary shall refuse or be unable to deliver such Notes, the Trustee
shall deliver such Notes to the persons in whose names such Notes are
registered, unless otherwise agreed upon between the Trustee and the Company,
in which event the Company shall cause the Notes to be delivered to the persons
in whose names such Notes are registered.

(c)           Neither
the Company, the Trustee, any Authenticating Agent nor any paying agent shall
have any responsibility or liability for any aspect of the records relating to,
or payments made on account of, beneficial ownership interests of a Global Note
or for maintaining, supervising or reviewing any records relating to such
beneficial ownership interest.

(d)           Pursuant
to the provisions of this subsection, at the option of the Trustee (subject to Section 2.04(a) hereof)
and upon 30 days’ written notice to the Depositary but not prior to the first
Interest Payment Date of the respective Global Notes, the Depositary shall be
required to surrender any two or more Global Notes which have identical terms,
including, without limitation, identical maturities, interest rates and
redemption provisions (but which may have differing Original Issue Dates) to
the Trustee, and the Company shall execute and the Trustee shall authenticate
and deliver to, or at the direction of, the Depositary a Global Note in
principal amount equal to the aggregate principal amount of, and with all terms
identical to, the Global Notes surrendered thereto and that shall indicate each
applicable Original Issue Date and the principal amount applicable to each such
Original Issue Date. The exchange contemplated in this subsection shall be
consummated at least 30 days prior to any Interest Payment Date applicable to
any of the Global Notes surrendered to the Trustee. Upon any exchange of any
Global Note with two or more Original Issue Dates, whether pursuant to this Section or
pursuant to Section 2.06 or Section 3.03 hereof, the aggregate
principal amount of the Notes with a particular Original Issue Date shall be
the same before and after such exchange, after giving effect to any retirement
of Notes and the Original Issue Dates applicable to such Notes occurring in
connection with such exchange.

Section 2.14           CUSIP and ISIN Numbers.  The Company in
issuing Notes may use “CUSIP” or “ISIN” numbers (if then generally in use) and,
if so used, the Trustee shall use “CUSIP” or “ISIN” numbers in notices of
redemption as a convenience to holders of Notes; provided, that any such
notice may state that no representation is made as to the correctness of such
numbers either as printed on the Notes or contained in any notice of redemption
and that reliance may be placed only on the other identification numbers
printed on the Notes, and any such redemption shall not be affected by any defect
in or omission of such numbers. The Company shall promptly notify the Trustee
of any change in the “CUSIP” or “ISIN” numbers.

ARTICLE
III

REDEMPTION OF NOTES

Section 3.01           Applicability Of Article.  Such of the Notes
of any series as are, by their terms, redeemable prior to their Stated Maturity
at the option of the Company, may be redeemed

 

 18
 

 

by the Company at such times, in such amounts and at such prices as may
be specified therein and in accordance with the provisions of this Article III.

Section 3.02           Notice Of Redemption; Selection Of Notes.  (a) 
The election of the Company to redeem any Notes shall be evidenced by a Board
Resolution which shall be given with notice of redemption to the Trustee at
least 15 days (or such shorter period acceptable to the Trustee in its sole
discretion) prior to the date the notice of redemption is to be sent to each
Holder.

(b)           Notice
of redemption to each Holder of Notes to be redeemed as a whole or in part
shall be given by the Trustee, in the manner provided in Section 15.10
hereof, no less than 30 or more than 60 days prior to the date fixed for
redemption. Any notice which is given in the manner herein provided shall be
conclusively presumed to have been duly given, whether or not the Noteholder
receives the notice. In any case, failure duly to give such notice, or any
defect in such notice, to the Holder of any Note designated for redemption as a
whole or in part shall not affect the validity of the proceedings for the
redemption of any other Note.

(c)           Each
such notice shall identify the Notes to be redeemed (including “CUSIP” or “ISIN”
numbers) and shall specify the date fixed for redemption, the places of
redemption and the redemption price (or the method for calculation thereof) at
which such Notes are to be redeemed, and shall state that (subject to
subsection (e) of this section) payment of the redemption price of such
Notes or portion thereof to be redeemed will be made upon surrender of such
Notes at such places of redemption, that interest accrued to the date fixed for
redemption will be paid as specified in such notice, and that from and after
such date interest thereon shall cease to accrue. If less than all of a series
of Notes having the same terms are to be redeemed, the notice shall specify the
Notes or portions thereof to be redeemed. If any Note is to be redeemed in part
only, the notice which relates to such Note shall state the portion of the
principal amount thereof to be redeemed, and shall state that, upon surrender
of such Note, a new Note or Notes having the same terms in aggregate principal
amount equal to the unredeemed portion thereof will be issued.

(d)           Unless
otherwise provided by a Company Order under Section 2.05 hereof, if less
than all of a series of Notes is to be redeemed, the Trustee shall select in
such manner as it shall deem appropriate and fair in its discretion the
particular Notes to be redeemed in whole or in part and shall thereafter
promptly notify the Company and the Depositary in writing of the Notes so to be
redeemed. If less than all of a series of Notes represented by a Global Note is
to be redeemed, the particular Notes or portions thereof of such series to be
redeemed shall be selected by the Trustee for such series of Notes in such
manner as the Trustee shall determine. Notes shall be redeemed only in
denominations of $1,000, provided that any remaining principal amount of
a Note redeemed in part shall be a denomination authorized under this
Indenture.

(e)           If
at the time of the mailing of any notice of redemption at the option of the
Company, the Company shall not have irrevocably directed the Trustee to apply
funds then on deposit with the Trustee or held by it and available to be used
for the redemption of Notes to redeem all the Notes called for redemption, such
notice, at the election of the Company, may state that it is conditional and
subject to the receipt of the redemption moneys by the Trustee on

 19
 

 

or before the date fixed
for redemption and that such notice shall be of no force and effect unless such
moneys are so received on or before such date.

Section 3.03           Payment Of Notes On Redemption; Deposit Of Redemption Price.
 (a)  If notice of redemption for any Notes shall have been given as
provided in Section 3.02 hereof and such notice shall not contain the
language permitted at the Company’s option under Section 3.02(e) hereof,
such Notes or portions of Notes called for redemption shall become due and
payable on the date and at the places stated in such notice at the applicable
redemption price, together with interest accrued to the date fixed for
redemption of such Notes. Interest on the Notes or portions thereof so called
for redemption shall cease to accrue and such Notes or portions thereof shall
be deemed not to be entitled to any benefit under this Indenture except to
receive payment of the redemption price together with  interest accrued thereon to the  date fixed for redemption. Upon presentation
and surrender of such Notes at the place of payment specified in such notice,
such Notes or the specified portions thereof shall be paid and redeemed at the
applicable redemption price, together with interest accrued thereon to the date
fixed for redemption.

(b)           If
notice of redemption shall have been given as provided in Section 3.02
hereof and such notice shall contain the language permitted at the Company’s
option under Section 3.02(e) hereof, such Notes or portions of Notes
called for redemption shall become due and payable on the date and at the
places stated in such notice at the applicable redemption price, together with
interest accrued to the date fixed for redemption of such Notes, and interest
on the Notes or portions thereof so called for redemption shall cease to accrue
and such Notes or portions thereof shall be deemed not to be entitled to any
benefit under this Indenture except to receive payment of the redemption price
together with interest accrued thereon to the date fixed for redemption; provided
that, in each case, the Company shall have deposited with the Trustee or a
paying agent on or prior to 11:00 a.m. New York City time on such
redemption date an amount sufficient to pay the redemption  price together with interest accrued to the
date fixed for redemption. Upon the Company making such deposit and, upon
presentation and surrender of such Notes at such a place of payment in such
notice specified, such Notes or the specified portions thereof shall be paid
and redeemed at the applicable redemption price, together with interest accrued
thereon to the date fixed for redemption. If the Company shall not make such
deposit on or prior to the redemption date, the notice of redemption shall be
of no force and effect and the principal on such Notes or specified portions
thereof shall continue to bear interest as if the notice of redemption had not
been given.

(c)           No
notice of redemption of Notes shall be mailed during the continuance of any
Event of Default, except (1) that, when notice of redemption of any Notes
has been mailed, the Company shall redeem such Notes but only if funds
sufficient for that purpose have prior to the occurrence of such Event of
Default been deposited with the Trustee or a paying agent for such purpose, and
(2) that notices of redemption of all outstanding Notes may be given
during the continuance of an Event of Default.

(d)           Upon
surrender of any Note redeemed in part only, the Company shall execute, and the
Trustee shall authenticate, deliver and register, a new Note or Notes of
authorized denominations in aggregate principal amount equal to, and having the
same terms, Original Issue Date or Dates and series as, the unredeemed portion
of the Note so surrendered.

 20
 

 

ARTICLE
IV

SENIOR NOTE FIRST MORTGAGE BONDS

Section 4.01           Delivery Of Initial Series Of Senior Note First
Mortgage Bonds.  Subject to the provisions of Section 4.11 and Article V
hereof, the Company hereby (a) delivers to the Trustee, in connection with
the issuance of a series of Notes hereunder in an aggregate principal amount of
$54,000,000 and titled the 6.20% Senior Secured Notes due 2016, Senior Note
First Mortgage Bonds bearing the designation “First Mortgage Bonds, Senior
Notes Series AA” in the aggregate principal amount of $54,000,000, and a
series of Notes hereunder in an aggregate principal amount of $42,000,000 and
titled the 6.70% Senior Secured Notes due 2036, Senior Note First Mortgage
Bonds bearing the designation “First Mortgage Bonds, Senior Notes Series BB”
in the aggregate principal amount of $42,000,000, fully registered in the name
of the Trustee, in trust for the benefit of the Holders from time to time of the
Notes of such series issued under this Indenture as security for any and all
obligations of the Company under the Notes of such series, including, but not
limited to, (1) the full and prompt payment of the principal of and
premium, if any, on the Notes of such series when and as the same shall become
due and payable in accordance with the terms and provisions of this Indenture
or the Notes of such series, at the Maturity thereof, and (2) the full and
prompt payment of any interest on the Notes of such series when and as the same
shall become due and payable in accordance with the terms and provisions of
this Indenture or the Notes of such series and (b) delivers to the Trustee
the certificate of the Expert required by Section 4.06 hereof (if
required).

Section 4.02           Receipt.  The Trustee acknowledges receipt of
the Senior Note First Mortgage Bonds described in Section 4.01 hereof.

Section 4.03           Senior Note First Mortgage Bonds Held By The Trustee.
 The Trustee shall, as the holder of Senior Note First Mortgage Bonds,
attend such meeting or meetings of bondholders under the First Mortgage or, at
its option, deliver its proxy in connection therewith, as relate to matters
with respect to which it is entitled to vote or consent. So long as no Event of
Default hereunder shall have occurred and be continuing, either at any such
meeting or meetings, or otherwise when the consent of the holders of the first
mortgage bonds outstanding under the First Mortgage is sought without a
meeting, the Trustee shall vote all Senior Note First Mortgage Bonds then held
by it, or consent with respect thereto, in accordance with instructions
provided in a certificate of the Company, which instructions (a) shall
direct the Trustee to so vote or consent in proportion with the vote or consent
(as of 9:00 a.m. New York City time on the day of such vote or consent) of
the holders of all other first mortgage bonds outstanding under the First
Mortgage, the holders of which are eligible to vote or consent and (b) shall
set forth said proportions; provided, however, that the Trustee
shall not so vote in favor of, or so consent to, any amendment or modification
of the First Mortgage which, if it were an amendment or modification of this
Indenture, would require the consent of Holders, without the prior consent,
obtained in the manner prescribed in Section 13.02, of Holders of Notes
which would be required under said Section 13.02 for such an amendment or
modification of this Indenture.

Section 4.04           No Transfer Of Senior Note First Mortgage Bonds; Exceptions.
 Except (i) as required to effect an assignment to a successor
trustee under this Indenture, (ii) pursuant to Section 4.05 or Section 4.08
hereof, or (iii) in compliance with a final order of a court of

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competent jurisdiction in connection with any bankruptcy or
reorganization proceeding of the Company, the Trustee shall not sell, assign or
transfer the Senior Note First Mortgage Bonds. The Company shall issue stop
transfer instructions to the Mortgage Trustee and any transfer agent under the
First Mortgage to effect compliance with this Section 4.04 and shall cause
a legend to such effect to be set forth in such Senior Note First Mortgage
Bonds.

Section 4.05           Delivery To The Company Of All Senior Note First
Mortgage Bonds.  When the obligation of the Company to make payment
with respect to the principal of and premium, if any, and interest on all
Senior Note First Mortgage Bonds shall be satisfied or deemed satisfied
pursuant to Section 4.11 or Section 5.01 hereof, the Trustee shall,
upon written request of the Company and receipt of the certificate of the
Expert described in Section 4.06(b) hereof (if such certificate is
then required by Section 4.06(b) hereof), deliver to the Company
without charge therefor all of the Senior Note First Mortgage Bonds, together
with such appropriate instruments of transfer or release as may be reasonably
requested by the Company. All Senior Note First Mortgage Bonds delivered to the
Company in accordance with this Section 4.05 shall be delivered by the
Company to the Mortgage Trustee for cancellation.

Section 4.06           Fair Value Certificate.  (a)  If required
by applicable law, upon the delivery by the Company to the Trustee of Senior
Note First Mortgage Bonds pursuant to Section 4.01 or Section 4.09
hereof, the Company shall simultaneously therewith deliver to the Trustee a
certificate of an Expert (1) stating that he or she is familiar with the
provisions of such Senior Note First Mortgage Bonds and of this Indenture; (2) stating
the principal amount of such Senior Note First Mortgage Bonds so delivered, the
stated interest rate (or method of calculation of interest) of such Senior Note
First Mortgage Bonds (if any) and the stated maturity date of such Senior Note
First Mortgage Bonds; (3) identifying the Notes being issued
contemporaneously therewith, and (4) stating the fair value to the Company
of such Senior Note First Mortgage Bonds.

If the fair value to the Company of the Senior Note
First Mortgage Bonds so delivered, as described in the certificate to be
delivered pursuant to this Section 4.06(a), both (l) is equal to or
exceeds (A) $25,000 and (B) 1% of the principal amount of the Notes
outstanding at the date of delivery of such Senior Note First Mortgage Bonds
and (2) together with the fair value to the Company, as described in the
certificates to be delivered pursuant to this Section 4.06(a), of all
other Senior Note First Mortgage Bonds delivered to the Trustee since the
commencement of the then current calendar year, is equal to or exceeds 10% of
the principal amount of the Notes outstanding at the date of delivery of such
Senior Note First Mortgage Bonds, then the certificate required by this Section 4.06(a) shall
(1) be delivered by an Expert who shall be independent of the Company and
(2), in addition to the certifications described above, state the fair value to
the Company of all Senior Note First Mortgage Bonds delivered to the Trustee
pursuant to Section 4.09 hereof since the commencement of the then current
year as to which a certificate was not delivered by an Expert independent of
the Company.

(b)           If
Senior Note First Mortgage Bonds are delivered or surrendered to the Company
pursuant to Section 4.05 or 4.08 hereof, the Company shall simultaneously
therewith deliver to the Trustee a certificate of an Expert (1) stating
that it is familiar with the provisions of such Senior Note First Mortgage
Bonds and of this Indenture, (2) stating the principal amount of such
Senior Note First Mortgage Bonds so delivered, the stated interest rate (or
method of

 22
 

 

calculation of interest)
of such Senior Note First Mortgage Bonds (if any) and the stated maturity date
of such Senior Note First Mortgage Bonds, (3) if applicable, identifying
the Notes, the payment of the interest on and principal of which has been
discharged hereunder, and (4) stating that such delivery and release will
not impair the Lien of this Indenture in contravention of the provisions of
this Indenture. If, prior to the Release Date, the fair value of the Senior
Note First Mortgage Bonds so delivered and released, as described in the
certificate to be delivered pursuant to this Section 4.06(b), both (l) is
equal to or exceeds (A) $25,000 and (B) 1% of the principal amount of
the outstanding Notes at the date of release of such Senior Note First Mortgage
Bonds and (2) together with the fair value, as described in the
certificates to be delivered pursuant to this Section 4.06(b), of all
other Senior Note First Mortgage Bonds released from the lien of this Indenture
since the commencement of the then current calendar year, is equal to or
exceeds 10% of the principal amount of the Notes outstanding at the date of
release of such Senior Note First Mortgage Bonds, then the certificate required
by this Section 4.06(b) shall be delivered by an Expert who shall be
independent of the Company.

If, in connection with a delivery or release of
outstanding Senior Note First Mortgage Bonds, the Company provides to the
Trustee an Opinion of Counsel stating that the certificate described by this Section 4.06
is not required by law, such certificate shall not be required to be delivered
hereunder in connection with such delivery or release.

Section 4.07           Further Assurances.  The Company, at its own
expense, shall do such further lawful acts and things, and execute and deliver
such additional conveyances, assignments, assurances, agreements, financing
statements and instruments, as may be necessary in order to better assign,
assure and confirm to the Trustee its interest in the Senior Note First
Mortgage Bonds and for maintaining, protecting and preserving such interest.

Section 4.08           Exchange And Surrender Of Senior Note First Mortgage
Bonds.  At any time a Note shall cease to be entitled to any Lien,
benefit or security under this Indenture pursuant to Section 5.01 hereof
and the Company shall have provided the Trustee with notice thereof, the
Trustee shall surrender an equal principal amount of the Related Series of
Senior Note First Mortgage Bonds, subject to the limitations of this Section 4.08,
to the Company for cancellation. The Trustee shall, together with such Senior
Note First Mortgage Bonds, deliver to the Company such appropriate instruments
of transfer or release as the Company may reasonably request. Prior to the
surrender required by this paragraph, the Trustee shall receive from the
Company the following, and (subject to Section 9.01 hereof) shall be fully
protected in relying upon, an Officers’ Certificate stating (i) the
aggregate outstanding principal amount of the Senior Note First Mortgage Bonds
of the series surrendered by the Trustee, after giving effect to such
surrender, (ii) the aggregate outstanding principal amount of the Related Series of
Notes and (iii) that the surrender of the Senior Note First Mortgage Bonds
will not result in any default under this Indenture.

The Company shall not be permitted to cause the
surrender or exchange of all or any part of a series of Senior Note First
Mortgage Bonds contemplated in this Section, if, after such surrender or
exchange, the aggregate outstanding principal amount of the Related Series of
Notes would exceed the aggregate outstanding principal amount of such series of
Senior Note First Mortgage Bonds held by the Trustee. Any Senior Note First
Mortgage Bonds received by the Company pursuant to this Section 4.08 shall
be delivered to the Mortgage Trustee for

 23
 

 

cancellation. Notwithstanding
anything herein to the contrary, until the Release Date, the Company shall
preserve and maintain the Lien of this Indenture, and shall not permit, at any
time prior to the Release Date, the aggregate principal amount of Senior Note
First Mortgage Bonds held by the Trustee to be less than the aggregate amount
of Notes Outstanding.

Section 4.09           Acceptance Of Additional Senior Note First Mortgage
Bonds.  Upon the issuance of a series of Notes hereunder (other than
the initial series of Notes referred to in Section 4.01 hereof) at any
time prior to the Release Date, the Company shall deliver to the Trustee in
trust for the benefit of the Holders of the Notes as described in Section 4.11
hereof, and the Trustee shall accept and acknowledge receipt therefor, a
Related Series of Senior Note First Mortgage Bonds registered in the name
of the Trustee conforming to the requirements of Section 4.10 hereof.

Section 4.10           Terms Of Senior Note First Mortgage Bonds.  Each
series of Senior Note First Mortgage Bonds delivered to the Trustee pursuant to
Section 4.01 or Section 4.09 hereof shall have the same stated
maturity date and shall be in the same aggregate principal amount as, and have
redemption provisions corresponding to, the Related Series of Notes being
issued;  it being expressly understood
that such Senior Note First Mortgage Bonds may, but need not, bear interest,
any such interest to be payable on the same Interest Payment Dates as the
Related Series of Notes being issued.

Section 4.11           Senior Note First Mortgage Bonds As Security For Notes.
 Until the Release Date and subject to Article V hereof, Senior Note
First Mortgage Bonds delivered to the Trustee, for the benefit of the Holders
of the Notes, shall constitute part of the trust estate and security for any
and all obligations of the Company under the Notes and this Indenture,
including, but not limited to (1) the full and prompt payment of the
principal of and premium, if any, on such Notes when and as the same shall
become due and payable in accordance with the terms and provisions of this
Indenture or the Notes, either at the stated maturity thereof, upon
acceleration of the maturity thereof or upon redemption, (2) the full and
prompt payment of any interest on such Notes when and as the same shall become
due and payable in accordance with the terms and provisions of this Indenture
or the Notes, and (3) the full and prompt payment of all other obligations
of the Company to the Holders and the Trustee under this Indenture and the
Notes.

Notwithstanding anything in this Indenture to the
contrary, from and after the Release Date, the obligation of the Company to
make payment with respect to the principal of and premium, if any, and interest
on the Senior Note First Mortgage Bonds shall be deemed satisfied and
discharged as provided in the supplemental indenture or indentures to the First
Mortgage creating such Senior Note First Mortgage Bonds and the Senior Note
First Mortgage Bonds shall cease to secure in any manner Notes theretofore or
subsequently issued. From and after the Release Date, any conditions to the
issuance of Notes that refer or relate to Senior Note First Mortgage Bonds or
the First Mortgage shall be inapplicable. Following the Release Date, the
Company shall cause the First Mortgage to be discharged and the Company shall
not issue any additional First Mortgage Bonds or Senior Note First Mortgage
Bonds under the First Mortgage. The Company shall notify the Trustee promptly
of the occurrence of the Release Date. Notice of the occurrence of the Release
Date shall be given by the Trustee to the Holders of the Notes in the manner
provided in Section 15.10 hereof not later than 30 days after the Release
Date. If any

 24
 

 

Event of Default under
this Indenture or a completed default (as defined under the First Mortgage)
under the First Mortgage has occurred and is continuing on the date that the
Release Date would otherwise occur, the Release Date will be postponed until
such Event of Default or completed default has been cured.

ARTICLE
V

SATISFACTION AND DISCHARGE; UNCLAIMED MONEYS

Section 5.01           Satisfaction And Discharge.  (a)  If at
any time:

(1)           the
Company shall have paid or caused to be paid the principal of and premium, if
any, and interest on all the outstanding Notes (or the Notes of any series), as
and when the same shall have become due and payable,

(2)           the
Company shall have delivered to the Trustee for cancellation all outstanding
Notes (or the Notes of any series), or

(3)           the
Company shall have irrevocably deposited or caused to be irrevocably deposited
with the Trustee as trust funds the entire amount in (A) cash, (B) U.S.
Government Obligations maturing as to principal and interest in such amounts
and at such times as will insure the availability of cash, or (C) a
combination of cash and U.S. Government Obligations, in any case sufficient,
without reinvestment, as certified by an independent public accounting firm of
national reputation in a written certification delivered to the Trustee, to pay
at maturity or the applicable redemption date (provided that notice of
redemption shall have been duly given or irrevocable provision satisfactory to
the Trustee shall have been duly made for the giving of any notice of
redemption) all outstanding Notes (or the Notes of any series), including
principal and any premium and interest due or to become due to such date of
maturity, as the case may be and, unless all outstanding Notes (or the Notes of
any series) are to be due within 90 days of such deposit by redemption or
otherwise, shall also deliver to the Trustee an opinion of counsel expert in
federal income tax matters to the effect that the Company has received from, or
there has been published by, the Internal Revenue Service a ruling or similar
pronouncement by the Internal Revenue Service or that there has been a change
of law (collectively, an “External Tax Pronouncement”), in either case to the
effect that the Holders of the applicable Notes will not recognize income, gain
or loss for federal income tax purposes as a result of such defeasance or
discharge of the Indenture and will be subject to federal income tax on the
same amounts, in the same manner and at the same times as would have been the
case absent such defeasance or discharge of this Indenture,

and if, in any such case, (x) the Company shall
also pay or cause to be paid all other sums payable hereunder by the Company
and (y) the Company has delivered to the Trustee an Officers’ Certificate
and an Opinion of Counsel each stating that all conditions precedent herein
provided for relating to the satisfaction and discharge of this Indenture (or
only in respect of the applicable series of Notes) have been complied with,
then this Indenture shall cease to be of further effect (or only in respect of
the applicable series of Notes) (except as to (i) rights of

 25
 

 

registration of transfer and exchange of Notes, (ii) substitution
of mutilated, defaced, destroyed, lost or stolen Notes, (iii) rights of
Noteholders to receive payments of principal thereof, and any premium and
interest thereon, upon the original stated due dates therefor or upon the
applicable redemption date (but not upon acceleration of maturity) from the
moneys and U.S. Government Obligations held by the Trustee pursuant to Section 5.02
hereof, (iv) the rights and immunities of the Trustee hereunder, (v) the
rights of the Holders of Notes as beneficiaries hereof with respect to the
property so deposited with the Trustee payable to all or any of them, (vi) the
obligations of the Company under Sections 6.02 and 6.03 hereof, (vii) the
obligations and rights of the Trustee and the Company under Section 5.04
hereof, and (viii) the duties of the Trustee with respect to any of the
foregoing), and the Company shall be deemed to have paid and discharged the
entire indebtedness represented by, and its obligations under, all the
outstanding Notes (or the Notes of any series), and the Trustee, on demand of
the Company and at the cost and expense of the Company, shall execute proper
instruments acknowledging such satisfaction of and discharging this Indenture
(to the extent applicable) and the Trustee shall at the request of the Company
return to the Company all Senior Note First Mortgage Bonds (or the Related Series of
Senior Note First Mortgage Bonds) and all other property and money held by it
under this Indenture and determined by it from time to time in accordance with
the certification pursuant to this Section 5.01(a)(3) to be in excess
of the amount required to be held under this Section.

If the Notes (or the Notes of any series) are deemed
to be paid and discharged pursuant to Section 5.01(a)(3) hereof,
within 15 days after those Notes are so deemed to be paid and discharged, the
Trustee shall cause a written notice to be given to each Holder in the manner
provided by Section 15.10 hereof. The notice shall:

(i)                state
that those Notes are deemed to be paid and discharged;

(ii)               set
forth a description of any U.S. Government Obligations and cash held by the
Trustee as described above;

(iii)              if
any Notes will be called for redemption, specify the date or dates on which
those Notes are to be called for redemption.

Notwithstanding the satisfaction and discharge of this
Indenture (if applicable), the obligations of the Company to the Trustee under Section 9.06
hereof shall survive such satisfaction and discharge.

If the Notes (or the Notes of any series) are deemed
paid and discharged pursuant to this Section 5.01, the obligation of the
Company to make payment with respect to the principal of and premium, if any,
and interest on the Related Series of Senior Note First Mortgage Bonds
shall be satisfied and discharged and the Related Series of Senior Note
First Mortgage Bonds shall cease to secure the Notes (or the Notes of any
series) in any manner.

(b)           If
the Company shall have paid or caused to be paid the principal of and premium,
if any, and interest on any Note, as and when the same shall have become due
and payable or the Company shall have delivered to the Trustee for cancellation
any outstanding Note, such Note shall cease to be entitled to any Lien, benefit
or security under this

 26
 

 

Indenture. Upon a Note of
any series ceasing to be entitled to any Lien, benefit or security under this
Indenture, the obligation of the Company to make payment with respect to
principal of and premium, if any, and interest on a principal amount of the
Related Series of Senior Note First Mortgage Bonds equal to the principal
amount of such Note shall be satisfied and discharged and such portion of the
principal amount of such Senior Note First Mortgage Bonds shall cease to secure
the Notes in any manner.

Section 5.02           Deposited Moneys To Be Held In Trust By Trustee.  Subject
to Section 5.04, all moneys and U.S. Government Obligations deposited with
the Trustee pursuant to Section 5.01 hereof, shall be held in trust and
applied by it to the payment, either directly or through any paying agent
(including the Company if acting as its own paying agent), to the Holders of
the particular Notes for the payment or redemption of which such moneys and
U.S. Government Obligations have been deposited with the Trustee of all sums
due and to become due thereon for principal and premium, if any, and interest.

Section 5.03           Paying Agent To Repay Moneys Held.  Upon the
satisfaction and discharge of this Indenture all moneys then held by any paying
agent for the Notes (other than the Trustee) shall, upon written demand by the
Company, be repaid to the Company or paid to the Trustee, and thereupon such
paying agent shall be released from all further obligations with respect to
such moneys.

Section 5.04           Return Of Unclaimed Moneys.  Any moneys
deposited with or paid to the Trustee for payment of the principal of or any
premium or interest on any Notes and not applied but remaining unclaimed by the
Holders of such Notes for two years after the date upon which the principal of
or any premium or interest on such Notes, as the case may be, shall have become
due and payable, shall be repaid to the Company, subject to applicable
abandoned property laws, by the Trustee on written demand by the Company; and
any Holder of any of such Notes shall thereafter look only to the Company for
any payment which such Holder may be entitled to collect.

ARTICLE
VI

PARTICULAR COVENANTS OF THE COMPANY

Section 6.01           Payment Of Principal And Interest.  The
Company covenants and agrees for the benefit of the Holders of the Notes of any
series that it will duly and punctually pay or cause to be paid the principal
of and any premium and interest, if any, on, such Notes at the places, at the
respective times and in the manner provided in such Notes or in this Indenture.

Section 6.02           Offices For Payments, Etc.  So long as the
Notes of any series are outstanding hereunder, the Company will maintain in the
Borough of Manhattan, The City of New York, State of New York or Chicago,
Illinois an office or agency where the Notes of such series may be presented
for payment, for exchange as in this Indenture provided and for registration of
transfer as in this Indenture provided.

The Company will maintain in the Borough of Manhattan,
The City of New York, State of New York or Chicago, Illinois an office or
agency where notices and demands to or upon the Company in respect of the Notes
of any series or this Indenture may be served.

 27

 

 

The Company will give to the Trustee prompt written
notice of the location of each such office or agency and of any change of
location thereof. In case the Company shall fail to maintain any office or
agency required by this Section to be located in the Borough of Manhattan,
The City of New York, State of New York or Chicago, Illinois or shall fail to
give such notice of the location or of any change in the location of any of the
above offices or agencies, presentations and demands may be made and notices may
be served at the Corporate Trust Office of the Trustee, and, in such event, the
Trustee shall act as the Company’s agent to receive all such presentations,
surrenders, notices and demands pursuant to this Section.

The Company may from time to time designate one or
more additional offices or agencies where the Notes of any series may be
presented for payment, for exchange as in this Indenture provided and for
registration of transfer as in this Indenture provided, and the Company may
from time to time rescind any such designation; provided, however,
that no such designation or rescission shall in any manner relieve the Company
of its obligation to maintain any office or agency provided for in this Section.
The Company will give to the Trustee prompt written notice of any such
designation or rescission thereof and of any change in the location of any such
other office or agency.

Section 6.03           Appointment To Fill A Vacancy In Office Of Trustee.
The Company, whenever necessary to avoid or fill a vacancy in the office of
Trustee, will appoint, in the manner provided in Section 9.11, a Trustee,
so that there shall at all times be a Trustee hereunder.

Section 6.04           Provision As To Paying Agent. The Trustee shall be
the paying agent for the Notes and, at the option of the Company, the Company
may appoint additional paying agents (including without limitation itself
unless an event of default has occurred and is continuing). Whenever the
Company shall appoint a paying agent other than the Trustee with respect to the
Notes, it will cause such paying agent to execute and deliver to the Trustee an
instrument in which such agent shall agree with the Trustee, subject to the
provisions of this Section:

(1)           that
such paying agent will hold all sums received by it as such agent for the
payment of the principal of or any premium or interest on the Notes (whether
such sums have been paid to it by the Company or by any other obligor on the
Notes) in trust for the benefit of the Holders of the Notes, or of the Trustee
until such sums shall be paid to such Holders or otherwise disposed of as
herein provided;

(2)           that
such paying agent will give the Trustee notice of any failure by the Company
(or by any other obligor on Notes) to make any payment of the principal of,
premium, if any, or interest on the Notes when the same shall be due and
payable; and

(3)           that
such paying agent will at any time during the continuance of any such failure,
upon the written request of the Trustee, forthwith pay to the Trustee all sums
so held in trust by such paying agent.

The Company will, on or prior to each due date of the
principal of and any premium or interest on the Notes, deposit with the paying
agent a sum sufficient to pay such principal and any premium or interest so
becoming due, such sum to be held in trust for the benefit of the Holders of
the Notes entitled to such principal of and any premium or interest, and
(unless such 

 28
 

 

paying agent is the
Trustee) the Company will promptly notify the Trustee of any failure to take
such action.

If the Company shall act as its own paying agent with
respect to the Notes, it will, on or before each due date of the principal of
(and premium, if any) or interest, if any, on the Notes, set aside, segregate
and hold in trust for the benefit of the Holders of the Notes, a sum sufficient
to pay such principal (and premium, if any) or interest, if any, so becoming
due until such sums shall be paid to such Holders or otherwise disposed of as
herein provided. The Company will promptly notify the Trustee of any failure to
take such action.

The Company may at any time pay or cause to be paid to
the Trustee all sums held in trust by it or any paying agent hereunder, as
required by this Section, such sums to be held by the Trustee upon the trusts
herein contained, and, upon such payment by any paying agent to the Trustee,
such paying agent shall be released from all further liability with respect to
such money.

Anything in this Section to the contrary
notwithstanding, the agreement to hold sums in trust as provided in this Section is
subject to the provisions of Sections 5.03 and 5.04.

Section 6.05           Opinions Of Counsel. The Company will cause this
Indenture, any indentures supplemental to this Indenture, and any financing or
continuation statements to be promptly recorded and filed and rerecorded and
refiled in such a manner and in such places, as may be required by law in order
fully to preserve, protect and perfect the security of the Noteholders and all
rights of the Trustee, and shall deliver to the Trustee:

(a)           promptly
after the execution and delivery of this Indenture and of any indenture
supplemental to this Indenture but prior to the Release Date, an Opinion of
Counsel either stating that, in the opinion of such counsel, this Indenture or
such supplemental indenture and any financing or continuation statements have
been properly recorded and filed so as to make effective and to perfect the
interest of the Trustee intended to be created by this Indenture for the
benefit of the Holders from time to time of the Notes in the Senior Note First
Mortgage Bonds, and reciting the details of such action, or stating that, in
the opinion of such counsel, no such action is necessary to perfect or make
such interest effective and stating what, if any, action of the foregoing
character may reasonably be expected to become necessary prior to the next
succeeding December 1 to maintain, perfect and make such interest
effective; and

(b)           on
or before December 1 of each year, commencing December 1, 2006, and
prior to the Release Date, an Opinion of Counsel either stating that in the
opinion of such counsel such action has been taken, since the date of the most
recent Opinion of Counsel furnished pursuant to this Section 6.05(b) or
the first Opinion of Counsel furnished pursuant to Section 6.05(a) hereof,
with respect to the recording, filing, rerecording, or refiling of this
Indenture, each supplemental indenture and any financing or continuation
statements, as is necessary to maintain and perfect the interest of the Trustee
intended to be created by this Indenture for the benefit of the Holders from
time to time of the Notes in the Senior Note First Mortgage Bonds, and reciting
the details of such action, or stating that in the opinion of such counsel no
such action is necessary to maintain and perfect such interest and stating
what, if any, action of the foregoing character may reasonably be expected to
become necessary prior to the next succeeding December 1 to maintain,
perfect and make such security interest effective.

 29
 

 

Section 6.06           Certificates And Notice To Trustee. The Company
shall, on or before December 1 of each year, commencing December 1,
2006, deliver to the Trustee a certificate from its principal executive
officer, principal financial officer or principal accounting officer covering
the preceding calendar year and stating whether or not, to the knowledge of
such Person, the Company has complied with all conditions and covenants under
this Indenture, and, if not, describing in reasonable detail any failure by the
Company to comply with any such conditions or covenants. For purposes of this
Section, compliance shall be determined without regard to any period of grace
or requirement of notice provided under this Indenture. Upon the occurrence of
a completed default (as defined in the First Mortgage) prior to the Release
Date, the Company shall promptly notify the Trustee of such event.

Section 6.07           Restrictions On Liens. (a)  So long as any
Notes of any series are outstanding, the Company will not issue, assume,
guarantee or permit to exist after the Release Date any Debt secured by any
Lien on any Operating Property of the Company, whether owned at the date of
this Indenture or thereafter acquired, without in any such case effectively
securing the outstanding Notes (together with, if the Company shall so
determine, any other Debt of or guaranteed by the Company ranking equally with
the Notes) equally and ratably with such Debt (but only so long as such Debt is
so secured); provided, however, that the foregoing restriction
shall not apply to Debt secured by any of the following:

(i)                Liens
on any Operating Property existing at the time of acquisition thereof by the
Company (which Liens may also extend to subsequent repairs, alterations and
improvements to such Operating Property);

(ii)               Liens
on operating property of a corporation existing at the time such corporation is
merged into or consolidated with the Company, or at the time of a sale, lease,
or other disposition of the properties of such corporation or a division
thereof as an entirety or substantially as an entirety to the Company;

(iii)              Liens
on Operating Property to secure all or part of the cost of acquiring,
constructing, developing, or substantially repairing, altering, or improving
such property, or to secure any Debt incurred to provide funds for any such
purpose or for reimbursement of funds previously expended for any such purpose,
provided such Liens are created or assumed contemporaneously with, or within
eighteen (18) months after, such acquisition or the completion of construction,
development, or substantial repair, alteration or improvement;

(iv)             Liens
in favor of any State, or any department, agency, or instrumentality or
political subdivision of any State, or for the benefit of holders of securities
issued by any such entity (or providers of credit enhancement with respect to
such securities), to secure any Debt (including, without limitation,
obligations of the Company with respect to industrial development, pollution
control or similar revenue bonds) incurred for the purpose of financing all or
any part of the purchase price of, or the cost of constructing, developing, or
substantially repairing, altering, or improving Operating Property of the
Company;

 30
 

 

(v)              any
extension, renewal or replacement (or successive extensions, renewals, or
replacements), in whole or in part, of any Lien referred to in the foregoing
clauses (i) to (iv), inclusive; provided, however, that the
principal amount of Debt secured thereby and not otherwise authorized by said
clauses (i) to (iv), inclusive, shall not exceed the principal amount of
Debt, plus any premium or fee payable in connection with any such extension,
renewal, or replacement, so secured at the time of such extension, renewal, or
replacement.

(b)           Notwithstanding
the provisions of Section 6.07(a), the Company may issue, assume, or
guarantee Debt, or permit to exist after the Release Date any Debt, in each
case, secured by Liens that would otherwise be subject to the restrictions of Section 6.07(a) up
to an aggregate principal amount that, together with the principal amount of
all other Debt of the Company secured by Liens (other than Liens permitted by Section 6.07(a) that
would otherwise be subject to any of the foregoing restrictions) and the Value
of all Sale and Lease-Back Transactions in existence at such time (other
than any Sale and Lease-Back Transaction that, if such Sale and Lease-Back
Transaction had been a Lien, would have been permitted by Section 6.07(a),
other than Sale and Lease-Back Transactions permitted by Section 6.08
hereof because the commitment by or on behalf of the purchaser was obtained no
later than eighteen (18) months after the later of events described in clause (i) or
(ii) of Section 6.08 hereof, and other than Sale and Lease-Back
Transactions as to which application of amounts have been made in accordance
with clause (z) of Section 6.08 hereof), does not at the time exceed
fifteen percent (15%) of Capitalization.

(c)           If
the Company shall issue, assume, or guarantee any Debt secured by any Lien and
if Section 6.07(a) requires that the outstanding Notes be secured
equally and ratably with such Debt, the Company will promptly execute, at its
expense, any instruments necessary to secure the outstanding Notes equally and
ratably with such Debt and deliver the same to the Trustee along with:

(i)                An
Officers’ Certificate stating that the covenant of the Company contained in Section 6.07(a) has
been complied with; and

(ii)               An
Opinion of Counsel to the effect that the Company has complied with the
covenant contained in Section 6.07(a), and that any instruments executed
by the Company in the performance of such covenant comply with the requirements
of such covenant.

In the event that the Company shall hereafter secure
outstanding Notes equally and ratably with any other obligation or indebtedness
pursuant to the provisions of this Section 6.07, the Company will enter
into an indenture or agreement supplemental hereto and take such other action
to enable the Trustee to enforce effectively the rights of the Holders of outstanding
Notes so secured, equally and ratably with such other obligation or
indebtedness.

Section 6.08           Restrictions On Sale And Lease-Back Transactions. So
long as any Notes of any series are outstanding, the Company will not enter
into or permit to exist after the Release Date any Sale and Lease-Back
Transaction with respect to any Operating Property (except for transactions
involving leases for a term, including renewals, of not more than 48 months) if
the 

 31
 

 

commitment by or on behalf of the purchaser is obtained more than
eighteen (18) months after the later of (i) the completion of the
acquisition, construction, or development of such Operating Property and (ii) the
placing in operation of such Operating Property or of such Operating Property
as constructed, developed, or substantially repaired, altered, or improved,
unless (x) the Company would be entitled pursuant to Section 6.07(a) to
issue, assume, guarantee or permit to exist Debt secured by a Lien on such
Operating Property without equally and ratably securing the Notes, (y) the
Company would be entitled pursuant to Section 6.07(b), after giving effect
to such Sale and Lease-Back Transaction, to incur $1.00 of additional
Debt secured by Liens (other than Liens permitted by Section 6.07(a)) or (z) the
Company shall apply or cause to be applied, in the case of a sale or transfer
for cash, an amount equal to the net proceeds thereof (but not in excess of the
net book value of such Operating Property at the date of such sale or transfer)
and, in the case of a sale or transfer otherwise than for cash, an amount equal
to the fair value (as determined by the Board of Directors) of the Operating
Property so leased, to the retirement, within one hundred eighty (180) days
after the effective date of such Sale and Lease-Back Transaction, of
Notes (in accordance with their terms) or other Debt of the Company ranking
senior to, or equally with, the Notes; provided, however, that
the amount to be applied to such retirement of Debt shall be reduced by an
amount equal to the principal amount, plus any premium or fee paid in
connection with any redemption in accordance with the terms of Debt voluntarily
retired by the Company within such one hundred eighty (180) day period,
excluding retirement pursuant to mandatory sinking fund or prepayment
provisions and payments at stated maturity.

Section 6.09           Corporate Existence. Subject to the rights of the
Company under Article XII, the Company shall do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence and the rights (charter and statutory) and franchises of the Company;
provided, however, that the Company shall not be required to
preserve any such right or franchise if, in the judgment of the Company, the
preservation thereof is no longer desirable in the conduct of the business of
the Company.

ARTICLE
VII

REPORTS
BY

THE COMPANY AND THE TRUSTEE

Section 7.01           SEC Reports. The Company shall file with the
Trustee and the SEC, and transmit to Holders, such information, documents and
other reports, and such summaries thereof, as may be required pursuant to the
Trust Indenture Act at the times and in the manner provided pursuant to such
Act; provided that any such information, documents or reports required to be
filed with the SEC pursuant to Sections 13 or 15(d) of the Securities
Exchange Act of 1934 shall be filed with the Trustee within 15 days after the
same is so required to be filed with the SEC.

Delivery of such reports,
information and documents to the Trustee is for informational purposes only and
the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on Officers’
Certificates).

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Section 7.02           Reports By The Trustee to Holders. As promptly as
practicable after each August 15 beginning with August 15 following
the date of this Indenture, and in any event prior to October 15 in each
year, the Trustee shall mail to each Holder a brief report dated as of such August 15
that complies with TIA Section 313(a) if and to the extent required
thereby. The Trustee shall also comply with TIA Section 313(b) and
313(c).

A copy of each report at
the time of its mailing to Holders shall be filed with the SEC and each stock
exchange (if any) on which the Notes are listed. The Company agrees to notify
promptly the Trustee whenever the Notes become listed on any stock exchange and
of any delisting thereof.

Section 7.03           Communication By Holders with Other Holders. Holders
may communicate pursuant to TIA Section 312(b) with other Holders
with respect to their rights under this Indenture or the Notes. The Company,
the Trustee, the registrar and anyone else shall have the protection of TIA Section 312(c).
The Company shall comply with TIA Section 312(a), excluding from any list
required thereunder names and addresses of Holders received by the Trustee in
its capacity as registrar for the Notes.

ARTICLE
VIII

REMEDIES
OF THE TRUSTEE AND NOTEHOLDERS 

ON EVENTS OF DEFAULT

Section 8.01           Events Of Default. (a)  If one or more of the
following Events of Default shall have occurred and be continuing:

(1)           default
in the payment of any installment of interest upon any of the Notes as and when
the same shall become due and payable, and continuance of such default for a
period of sixty (60) days;

(2)           default
in the payment of the principal of or any premium on any of the Notes as and
when the same shall become due and payable;

(3)           failure
on the part of the Company duly to observe or perform any other of the
covenants or agreements on the part of the Company contained in this Indenture
for a period of sixty (60) days after the date on which written notice
specifying such failure, stating that such notice is a “Notice of Default”
hereunder and demanding that the Company remedy the same, shall have been given
to the Company by the Trustee by registered mail, or to the Company and the
Trustee by the Holders of not less than 25% in aggregate principal amount of
the Notes at the time outstanding;

(4)           prior
to the Release Date, a completed default (as defined in the First Mortgage) has
occurred and is continuing;  provided,
however, that anything in this Indenture to the contrary
notwithstanding, the waiver or cure of such default under the First Mortgage
and the rescission and annulment of the consequences thereof under the First
Mortgage shall constitute a waiver of the corresponding Event of Default
hereunder and a rescission and annulment of the consequences thereof hereunder;

 33
 

 

(5)           a
court having jurisdiction in the premises shall enter a decree or order for
relief in respect of the Company in an involuntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect,
adjudging the Company a bankrupt or insolvent, or approving as properly filed a
petition seeking reorganization, arrangement, adjustment or composition of or
in respect of the Company under any applicable law, or appointing a receiver,
liquidator, assignee, custodian, trustee or sequestrator (or similar official)
of the Company or for any substantial part of the property of the Company, or
ordering the winding up or liquidation of the affairs of the Company, and such
decree or order shall remain unstayed and in effect for a period of sixty (60)
consecutive days; or

(6)           the
Company shall commence a voluntary case or proceeding under any applicable
bankruptcy, insolvency, reorganization or other similar law now or hereafter in
effect or any other case or proceeding to be adjudicated a bankrupt or
insolvent, or consent to the entry of a decree or order for relief in an
involuntary case under any such law, or to the commencement of any bankruptcy
or insolvency case or proceeding against it, or the filing by it of a petition
or answer or consent seeking reorganization or relief under any applicable law,
or consent to the filing of such petition or to the appointment or taking
possession by a receiver, liquidator, assignee, custodian, trustee or
sequestrator (or similar official) of the Company or for any substantial part
of the property of the Company, or make any general assignment for the benefit
of creditors, or the notice by it in writing of its inability to pay its debts
generally as they become due, or the taking of any corporate action by the
Company in furtherance of any such action;

then, unless the principal of and interest on all of
the Notes shall have already become due and payable, either the Trustee or the
Holders of not less than 33% in aggregate principal amount of the Notes then
outstanding, by notice in writing to the Company (and to the Trustee if given
by such Holders), may declare the principal of and interest on all the Notes to
be due and payable immediately and upon any such declaration the same shall
become immediately due and payable, anything in this Indenture or in the Notes
contained to the contrary notwithstanding and, upon the Notes being declared to
be due and payable, the Trustee shall promptly file with the Mortgage Trustee a
written demand for redemption of all Senior Note First Mortgage Bonds to the
extent provided in the applicable provisions of the related supplemental
indenture or indentures to the First Mortgage.

The foregoing paragraph, however, is subject to the
condition that if, at any time after the principal of and interest on the Notes
shall have been so declared due and payable, and before any judgment or decree
for the payment of the moneys due shall have been obtained or entered as
hereinafter provided, and prior to the acceleration of all of the First
Mortgage Bonds issued and outstanding under the First Mortgage, the Company
shall pay or shall deposit with the Trustee a sum sufficient to pay all matured
installments of interest upon all of the Notes and the principal of and any
premium on any and all Notes which shall have become due otherwise than by
acceleration (with interest on overdue installments of interest, to the extent
that payment of such interest is enforceable under applicable law, and on such
principal and applicable premium at the rate borne by the Notes to the date of
such payment or deposit) and all sums paid or advanced by the Trustee
hereunder, the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, and any other amounts due the Trustee
under 

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Section 9.06 hereof,
and any and all Events of Default, other than the non-payment of principal of
and accrued interest on any Notes which shall have become due solely by
acceleration of maturity, shall have been cured or waived (including any
defaults under the First Mortgage, as evidenced by notice thereof from the
Mortgage Trustee to the Trustee), then and in every such case such payment or
deposit shall cause an automatic waiver of the Event of Default and its
consequences (including, if given, the written demand for redemption of all
Senior Note First Mortgage Bonds) and shall cause an automatic rescission and
annulment of the acceleration of the Notes; but no such waiver or rescission
and annulment shall extend to or shall affect any subsequent default, or shall
impair any right consequent thereon.

(b)           If
the Trustee shall have proceeded to enforce any right under this Indenture and
such proceedings shall have been discontinued or abandoned because of such
rescission or annulment or for any other reason or shall have been determined
adversely to the Trustee, then and in every such case the Company and the
Trustee shall be restored respectively to their several positions and rights
hereunder, and all rights, remedies and powers of the Company and the Trustee
shall continue as though no such proceeding had been taken.

Section 8.02           Collection Of Indebtedness By Trustee; Trustee May Prove
Debt. (a)  The Company covenants that if an Event of Default described
in clause (a)(1) or (a)(2) of Section 8.01 hereof shall have
occurred and be continuing, then, upon demand of the Trustee, the Company shall
pay to the Trustee, for the benefit of the Holders of the Notes, the whole
amount that then shall have so become due and payable on all such Notes for
principal or interest, as the case may be, with interest upon the overdue
principal and any premium and (to the extent that payment of such interest is
enforceable under applicable law) upon the overdue installments of interest at
the rate borne by the Notes; and, in addition thereto, such further amounts as
shall be sufficient to cover the costs and expenses of collection, including
reasonable compensation to the Trustee, its agents, attorneys and counsel, any
expenses or liabilities incurred by the Trustee hereunder other than through
its negligence or willful misconduct. Until such demand is made by the Trustee,
the Company may pay the principal of and interest on the Notes to the Holders,
whether or not the Notes are overdue.

(b)           In
case the Company shall fail forthwith to pay such amounts upon such demand, the
Trustee, in its own name and as trustee of an express trust, shall be entitled
and empowered to institute any actions or proceedings at law or in equity for
the collection of the sums so due and unpaid, including, prior to the Release
Date, to exercise any rights to that end it may have as a holder of Senior Note
First Mortgage Bonds, and may enforce any such judgment or final decree against
the Company or any other obligor on the Notes and collect in the manner
provided by law out of the property of the Company or any other obligor on such
Notes wherever situated, the moneys adjudged or decreed to be payable.

(c)           In
case there shall be pending proceedings relative to the Company or any other
obligor upon the Notes under Title 11 of the United States Code or any
other applicable Federal or state bankruptcy, insolvency or other similar law,
or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Company or its property or such other obligor, or in
case of any other comparable judicial proceedings relative to the Company or
such other obligor, or to the creditors or property of the Company or such
other obligor, the Trustee, irrespective of 

 35
 

 

whether the principal of
the Notes shall then be due and payable as therein expressed or by declaration
or otherwise and irrespective of whether the Trustee shall have made any demand
pursuant to the provisions of this Section, shall be entitled and empowered, by
intervention in such proceedings or otherwise:

(1)           to
file and prove a claim or claims for the whole amount of the principal and
interest owing and unpaid in respect of the Notes, and to file such other
papers or documents as may be necessary or advisable in order to have the
claims of the Trustee (including, prior to the Release Date, any claims of the Trustee
as holder of Senior Note First Mortgage Bonds and including any amounts due to
the Trustee under Section 9.06 hereof) and of the Noteholders allowed in
any judicial proceedings relative to the Company or such other obligor, or to
the creditors or property of the Company or such other obligor; and

(2)           to
collect and receive any moneys or other property payable or deliverable on any
such claims, and to distribute all amounts received with respect to the claims
of the Noteholders and of the Trustee on their behalf; and any trustee,
receiver, liquidator, custodian or other similar official is hereby authorized
by each of the Noteholders to make payments to the Trustee, and, in the event
that the Trustee shall consent to the making of the payments directly to the
Noteholders, to pay to the Trustee such amounts due pursuant to Section 9.06
hereof.

(d)           Nothing
herein contained shall be deemed to authorize the Trustee to authorize or
consent to or vote for or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Notes of
any series or the rights of any Holder thereof, or to authorize the Trustee to
vote in respect of the claim of any Holder in any such proceeding except to
vote for the election of a trustee in bankruptcy or similar person.

(e)           All
rights of action and of asserting claims under this Indenture, or under any of
the Notes may be prosecuted and enforced by the Trustee without the possession
of any of the Notes or the production thereof at any trial or other proceedings
relative thereto, and any such action or proceedings instituted by the Trustee
shall be brought in its own name as trustee of an express trust, and any
recovery of judgment, subject to the payment of the expenses, disbursements and
compensation of the Trustee and its agents, attorneys and counsel, shall be for
the ratable benefit of the Holders of the Notes in respect of which such action
was taken.

(f)            In
any proceedings brought by the Trustee (and also any proceedings involving the
interpretation of any provision of this Indenture to which the Trustee shall be
a party), the Trustee shall be held to represent all the Holders of the Notes
in respect to which action was taken, and it shall not be necessary to make any
Holders of such Notes parties to any such proceedings.

Section 8.03           Application Of Proceeds. Any moneys collected by
the Trustee with respect to any of the Notes pursuant to this Article shall
be applied in the following order, at the date or dates fixed by the Trustee
for the distribution of such moneys, upon presentation of the 

 36
 

 

several Notes, and stamping thereon the payment, if only partially
paid, and upon surrender thereof if fully paid.

FIRST: To the payment of all amounts due to the
Trustee pursuant to Section 9.06 hereof;

SECOND: In case the principal of the outstanding Notes
in respect of which such moneys have been collected shall not have become due
and be unpaid, to the payment of interest on the Notes, in the order of the
maturity of the installments of such interest, with interest (to the extent
allowed by law) upon the overdue installments of interest at the rate borne by
the Notes, such payments to be made ratably to the persons entitled thereto,
and then to the payment to the Holders entitled thereto of the unpaid principal
of and applicable premium on any of the Notes which shall have become due
(other than Notes previously called for redemption for the payment of which
moneys are held pursuant to the provisions of this Indenture), whether at stated
maturity or by redemption, in the order of their due dates, beginning with the
earliest due date, and if the amount available is not sufficient to pay in full
all Notes due on any particular date, then to the payment thereof ratably,
according to the amounts of principal and applicable premium due on that date,
to the Holders entitled thereto, without any discrimination or privilege;

THIRD: In case the principal of the outstanding Notes
in respect of which such moneys have been collected shall have become due, by
declaration or otherwise, to the payment of the whole amount then owing and
unpaid upon the Notes for principal and any premium and interest thereon, with
interest on the overdue principal and any premium and (to the extent allowed by
law) upon overdue installments of interest at the rate borne by the Notes; and
in case such moneys shall be insufficient to pay in full the whole amount so
due and unpaid upon the Notes, then to the payment of such principal and any
premium and interest without preference or priority of principal and any
premium over interest, or of interest over principal and any premium or of any
installment of interest over any other installment of interest, or of any Note
over any other Note, ratably to the aggregate of such principal and any premium
and accrued and unpaid interest; and

FOURTH: To the payment of the remainder, if any, to
the Company or its successors or assigns, or as a court of competent
jurisdiction may determine.

Section 8.04           Limitations On Suits By Noteholders. (a)  No
Holder of any Note shall have any right by virtue of or by availing of any
provision of this Indenture to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Indenture or for the
appointment of a receiver or trustee, or for any other remedy hereunder, unless
such Holder previously shall have given to the Trustee written notice of an
Event of Default with respect to such Note and of the continuance thereof, as
hereinabove provided, and unless also Noteholders of a majority in aggregate
principal amount of the Notes then outstanding affected by such Event of
Default shall have made written request upon the Trustee to institute such
action, suit or proceeding in its own name as Trustee hereunder and shall have
offered to the Trustee such reasonable indemnity as it may require against the
costs, expenses and liabilities to be incurred therein or thereby, and the
Trustee for 60 days after its receipt of such notice, request and offer of
indemnity, shall have neglected or refused to institute any such action, suit
or proceeding; it being understood and intended, and being expressly covenanted
by the taker and Holder of every 

 37
 

 

Note with every other taker and Holder and the Trustee, that no one or
more Holders of Notes shall have any right in any manner whatever by virtue or
by availing of any provision of this Indenture to affect, disturb or prejudice
the rights of any other Holder of Notes, or to obtain or seek to obtain
priority over or preference to any other such Holder or to enforce any right
under this Indenture, except in the manner herein provided and for the equal,
ratable and common benefit of all Holders of Notes. For the protection and
enforcement of the provisions of this Section, each and every Noteholder and
the Trustee shall be entitled to such relief as can be given either at law or
in equity.

(b)           Notwithstanding
any other provision in this Indenture, however, the rights of any Holder of any
Note to receive payment of the principal of and any premium and interest on
such Note, on or after the respective due dates expressed in such Note or on
the applicable redemption date, or to institute suit for the enforcement of any
such payment on or after such respective dates are absolute and unconditional,
and shall not be impaired or affected without the consent of such Holder.

Section 8.05           Suits For Enforcement. In case an Event of Default
has occurred, has not been waived and is continuing, hereunder the Trustee may
in its discretion proceed to protect and enforce the rights vested in it by
this Indenture, including, prior to the Release Date, its rights as holder of
the Senior Note First Mortgage Bonds, by such appropriate judicial proceedings
as the Trustee shall deem necessary to protect and enforce any of such rights,
either by suit in equity or by action at law or by proceeding in bankruptcy or
otherwise, whether for the specific enforcement of any covenant or agreement
contained in this Indenture or in aid of the exercise of any power granted to it
under this Indenture, or to enforce any other legal or equitable right vested
in the Trustee by this Indenture or by law.

Section 8.06           Powers And Remedies Cumulative; Delay Or Omission Not
Waiver Of Default. No right or remedy herein conferred upon or reserved to
the Trustee or to the Holders of Notes is intended to be exclusive of any other
right or remedy, and every right and remedy shall, to the extent permitted by
law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The
assertion or employment of any right or remedy hereunder, or otherwise, shall
not prevent the concurrent assertion or employment of any other appropriate
right or remedy.

No delay or omission of the Trustee or of any Holder
of Notes to exercise any right or power accruing upon any Event of Default
occurring and continuing as aforesaid shall impair any such right or power or
shall be construed to be a waiver of any such Event of Default or an acquiescence
therein; and, subject to Section 8.04, every right and power given by this
Indenture or by law to the Trustee or to the Holders of Notes may be exercised
from time to time, and as often as shall be deemed expedient, by the Trustee or
by the Holders of Notes, as the case may be.

Section 8.07           Direction of Proceedings and Waiver of Defaults By
Majority of Noteholders. (a)  The Holders of a majority in aggregate
principal amount of the Notes at the time outstanding shall have the right to
direct the time, method, and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred on the
Trustee; provided, that such direction shall not be otherwise than in
accordance with law and 

 38
 

 

the provisions of this Indenture; and provided further that
(subject to Section 9.01 hereof) the Trustee shall have the right to
decline to follow any such direction if the Trustee being advised by counsel
determines that the action or proceeding so directed may not lawfully be taken
or if the Trustee in good faith by a trust committee of directors or trustees
or responsible officers shall determine that the action or proceeding so
directed would involve the Trustee in personal liability. Nothing in this
Indenture shall impair the right of the Trustee in its discretion to take any
action deemed proper by the Trustee and which is not inconsistent with such
direction or directions by Noteholders.

(b)           The
Holders of a majority in aggregate principal amount of the Notes at the time
outstanding may on behalf of all of the Holders of the Notes waive any past
default or Event of Default hereunder and its consequences except a default in
the payment of principal of or any premium or interest on the Notes. Upon any
such waiver the Company, the Trustee and the Holders of the Notes shall be
restored to their former positions and rights hereunder, respectively, but no
such waiver shall extend to any subsequent or other default or Event of Default
or impair any right consequent thereon. Upon any such waiver, such default
shall cease to exist and be deemed to have been cured and not to be continuing,
and any Event of Default arising therefrom shall be deemed to have been cured
and not to be continuing, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other default or Event of Default or
impair any right consequent thereon.

Section 8.08           Notice of Default. The Trustee shall, within 90
days after the occurrence of a default with respect to the Notes, give to all
Holders of the Notes, in the manner provided in Section 15.10, notice of
such default actually known to the Trustee, unless such default shall have been
cured or waived before the giving of such notice, the term “default” for the
purpose of this Section 8.08 being hereby defined to be any event which is
or after notice or lapse of time or both would become an Event of Default; provided
that, except in the case of default in the payment of the principal of or any
premium or interest on any of the Notes, or in the payment of any sinking or
purchase fund installments, the Trustee shall be protected in withholding such
notice if and so long as a trust committee of directors or trustees or
responsible officers in good faith determines that the withholding of such
notice is in the interests of the Holders of the Notes.

Section 8.09           Undertaking To Pay Costs. All parties to this
Indenture agree, and each Holder of any Note by acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any
suit for the enforcement of any right or remedy under this Indenture or in any
suit against the Trustee for any action taken, suffered or omitted by it as
Trustee, the filing by any party litigant in such suit of an undertaking to pay
the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees and expenses, against
any party litigant in such suit, having due regard to the merits and good faith
of the claims or defenses made by such party litigant; but this Section 8.09
shall not apply to any suit instituted by the Trustee, or to any suit
instituted by any Noteholder, or group of Noteholders, holding in the aggregate
more than 10% in principal amount of the Notes outstanding, or to any suit
instituted by any Noteholder for the enforcement of the payment of the
principal of or any premium or interest on any Note on or after the due date
expressed in such Note or the applicable redemption date.

 

 39

 

 

Section 8.10           Restoration of Rights on Abandonment of Proceedings.
In case the Trustee or any Holder shall have proceeded to enforce any right
under this Indenture and such proceedings shall have been discontinued or
abandoned for any reason, or shall have been determined adversely to the
Trustee or to such Holder, then, and in every such case, the Company, the
Trustee and the Holders shall be restored respectively to their former
positions and rights hereunder, and all rights, remedies and powers of the Company,
the Trustee and the Holders shall continue as though no such proceedings had
been taken.

Section 8.11           Defaults Under The First Mortgage. In addition to
every other right and remedy provided herein, the Trustee may exercise any
right or remedy available to the Trustee in its capacity as owner and holder of
Senior Note First Mortgage Bonds which arises as a result of a completed
default under the First Mortgage whether or not an Event of Default under this
Indenture shall then have occurred and be continuing.

Section 8.12           Waiver of Usury, Stay or Extension Laws. The
Company covenants (to the extent that it may lawfully do so) that it will not
at any time insist upon, or plead, or in any manner whatsoever claim or take
the benefit or advantage of, any usury, stay or extension law wherever enacted,
now or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution
of every such power as though no such law had been enacted.

ARTICLE
IX

CONCERNING THE TRUSTEE

Section 9.01           Duties and Responsibilities of Trustee. (a) 
The Trustee, prior to the occurrence of an Event of Default and after the
curing of all Events of Default which may have occurred, undertakes to perform
such duties and only such duties as are specifically set forth in this
Indenture. If an Event of Default has occurred (which has not been cured or
waived), the Trustee shall exercise such of the rights and powers vested in it
by this Indenture, and use the same degree of care and skill in their exercise,
as a prudent man would exercise or use under the circumstances in the conduct
of his own affairs.

(b)           No
provisions of this Indenture shall be construed to relieve the Trustee from
liability for its own negligent action, its own negligent failure to act or its
own willful misconduct, except that:

(1)           prior
to the occurrence of any Event of Default and after the curing or waiving of
all Events of Default which may have occurred

(A)          the
duties and obligations of the Trustee shall be determined solely by the express
provisions of this Indenture, and the Trustee shall not be liable except for
the performance of such duties and obligations as are specifically set forth in
this Indenture, and no implied covenants or obligations shall be read into this
Indenture against the Trustee; and

 40
 

 

(B)           in
the absence of bad faith or actual knowledge on the part of the Trustee, the
Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any certificates or
opinions furnished to the Trustee and conforming to the requirements of this
Indenture; but, in the case of any such certificates or opinions which by any
provision hereof are specifically required to be furnished to the Trustee, the
Trustee shall be under a duty to examine the same to determine whether or not
they conform to the requirements of this Indenture (but need not confirm or
investigate the accuracy of mathematical calculations or other facts stated
therein);

(2)           the
Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer or Officers of the Trustee, unless it shall be proved that
the Trustee was negligent in ascertaining the pertinent facts; and

(3)           the
Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction, pursuant to this
Indenture, of the Holders of a majority in principal amount of the Notes,
including, but not limited to, Section 8.07 hereof relating to the time,
method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred upon the Trustee under this
Indenture.

(c)           No
provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of
its duties hereunder, or in the exercise of any of its rights or powers, if it
shall have reasonable grounds for believing that repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured to
it.

(d)           Whether
or not therein expressly so provided, every provision of this Indenture
relating to the conduct or affecting the liability of or affording protection
to the Trustee shall be subject to the provisions of this Section.

Section 9.02           Reliance on Documents, Opinions, Etc. Except as
otherwise provided in Section 9.01 hereof:

(a)           the
Trustee may conclusively rely and shall be protected in acting or refraining
from acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, note or other paper or document
believed by it to be genuine and to have been signed or presented by the proper
party or parties;

(b)           any
request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by an Officers’ Certificate (unless other evidence in
respect thereof is herein specifically prescribed); and any Board Resolution
may be evidenced to the Trustee by a copy thereof certified by the Secretary or
an Assistant Secretary of the Company;

(c)           the
Trustee may consult with counsel of its selection and any advice or Opinion of
Counsel shall be full and complete authorization and protection in respect of
any 

 41
 

 

action taken, suffered or
omitted by it hereunder in good faith and in accordance with such advice or
Opinion of Counsel;

(d)           the
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request, order or direction of any of the
Noteholders, pursuant to this Indenture, unless such Noteholders shall have
offered to the Trustee reasonable security or indemnity satisfactory to it
against the costs, expenses and liabilities which may be incurred by such
exercise;

(e)           the
Trustee shall not be liable for any action taken, suffered or omitted by it in
good faith and believed by it to be authorized or within the discretion or
rights or powers conferred upon it by this Indenture;

(f)            prior
to the occurrence of an Event of Default hereunder and after the curing or
waiving of all Events of Default, the Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, consent, order,
approval, note or other paper or document, unless requested in writing to do so
by the Holders of at least a majority in principal amount of the then
outstanding Notes; provided that if the payment within a reasonable time
to the Trustee of the costs, expenses or liabilities likely to be incurred by
it in the making of such investigation is, in the opinion of the Trustee, not
reasonably assured to the Trustee by the security afforded to it by this
Indenture, the Trustee may require reasonable indemnity satisfactory to it
against such expense or liability as a condition to so proceeding;

(g)           the
Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or through agents or attorneys; provided that
the Trustee shall not be liable for the conduct or acts of any such agent or
attorney that shall have been appointed in accordance herewith with due care;

(h)           in
no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited
to, loss of profit) irrespective of whether the Trustee has been advised of the
likelihood of such loss or damage and regardless of the form of action;

(i)            the
Trustee shall not be deemed to have notice of any Default or Event of Default
unless a Responsible Officer of the Trustee has actual knowledge thereof or
unless written notice of any event which is in fact such a default is received
by the Trustee at the Corporate Trust Office of the Trustee, and such notice
references the Notes and this Indenture; and

(j)            the
rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to,
and shall be enforceable by, the Trustee in each of its capacities hereunder,
and each agent, custodian and other Person employed to act hereunder.

Section 9.03           No Responsibility For Recitals, Etc. The recitals
contained herein and in the Notes (except in the certificate of authentication)
shall be taken as the statements of the Company, and the Trustee assumes no
responsibility for the correctness of the same. The Trustee 

 42
 

 

makes no representations as to the validity or sufficiency of this
Indenture or of the Notes. The Trustee shall not be accountable for the use or
application by the Company of any Notes or the proceeds of any Notes
authenticated and delivered by the Trustee in conformity with this Indenture.

Section 9.04           Trustee, Authenticating Agent, Paying Agent Or
Registrar May Own Notes. The Trustee and any Authenticating Agent or
paying agent in its individual or other capacity, may become the owner or
pledgee of Notes with the same rights it would have if it were not Trustee,
Authenticating Agent or paying agent.

Section 9.05           Moneys To Be Held In Trust. Subject to Section 5.04
hereof, all moneys received by the Trustee shall, until used or applied as
herein provided, be held in trust for the purposes for which they were
received, but need not be segregated from other funds except to the extent
required by law. The Trustee may allow and credit to the Company interest on
any money received hereunder at such rate, if any, as may be agreed upon by the
Company and the Trustee from time to time as may be permitted by law.

Section 9.06           Compensation And Expenses Of Trustee. The Company
covenants and agrees to pay to the Trustee from time to time, and the Trustee
shall be entitled to, such compensation as the Company and the Trustee shall
from time to time agree in writing (which shall not be limited by any law in
regard to the compensation of a trustee of an express trust), and the Company
shall pay or reimburse the Trustee upon its request for all reasonable
expenses, disbursements and advances incurred or made by the Trustee in accordance
with this Indenture (including the reasonable compensation and the reasonable
expenses and disbursements of its counsel and agents, including any
Authenticating Agents, and of all persons not regularly in its employ) except
any such expense, disbursement or advance as shall be determined to have been
caused by its negligence or willful misconduct. The Company also covenants to
fully indemnify each of the Trustee or any predecessor and their agents for,
and to hold it harmless against, any loss, liability, claim, damage or expense
incurred without negligence or willful misconduct on the part of the Trustee
and arising out of or in connection with the acceptance or administration of
this trust, including the costs and expenses of defending itself against any
claim or liability. The obligations of the Company under this Section 9.06
to compensate the Trustee and to pay or reimburse the Trustee for expenses,
disbursements and advances shall constitute additional indebtedness hereunder.
Such additional indebtedness shall be secured by a lien prior to that of the
Notes upon all property and funds held or collected by the Trustee as such,
except funds held in trust for the benefit of the Holders of any particular
Notes. The provisions of this Section 9.06 shall survive termination of
this Indenture and resignation or removal of the Trustee.

Section 9.07           Officers’ Certificate As Evidence. Whenever in the
administration of this Indenture, the Trustee shall deem it necessary or
desirable that a matter be proved or established prior to the taking, suffering
or omitting of any action hereunder, such matter (unless other evidence in
respect thereof is herein specifically prescribed) may, in the absence of
negligence or bad faith on the part of the Trustee, be deemed to be
conclusively proved and established by an Officers’ Certificate delivered to
the Trustee, and such Officers’ Certificate, in the absence of negligence or
bad faith on the part of the Trustee, shall be full warrant to the Trustee for
any action taken, suffered or omitted by it under this Indenture in reliance
thereon.

 43
 

 

Section 9.08           Conflicting Interest Of Trustee. The Trustee shall
be subject to and shall comply with the provisions of Section 310(b) of
the TIA. Nothing in this Indenture shall be deemed to prohibit the Trustee or
the Company from making any application permitted pursuant to such section.

Section 9.09           Existence And Eligibility Of Trustee. There shall
at all times be a Trustee hereunder which Trustee shall at all times be a
corporation organized and doing business under the laws of the United States or
any State thereof or of the District of Columbia having a combined capital and
surplus of at least $50,000,000 and which is authorized under such laws to
exercise corporate trust powers and is subject to supervision or examination by
Federal or state authorities. Such corporation shall have its principal place
of business in the City of Chicago, Illinois or the Borough of Manhattan, The
City of New York, State of New York, if there be such a corporation in such
location willing to act upon reasonable and customary terms and conditions. If
such corporation publishes reports of condition at least annually, pursuant to
law or to the requirements of the aforesaid authority, then for the purposes of
this Section 9.09, the combined capital and surplus shall be deemed to be
as set forth in its most recent report of condition so published. No obligor
upon the Notes or Person directly or indirectly controlling, controlled by, or
under common control with such obligor shall serve as Trustee. If at any time
the Trustee shall cease to be eligible in accordance with this Section 9.09,
the Trustee shall resign immediately in the manner and with the effect
specified in Section 9.10 hereof.

Section 9.10           Resignation Or Removal Of Trustee. (a) 
Pursuant to the provisions of this Article, the Trustee may at any time resign
and be discharged of the trusts created by this Indenture by giving written
notice to the Company specifying the day upon which such resignation shall take
effect, and such resignation shall take effect immediately upon the later of
the appointment of a successor trustee and such day.

(b)           Any
Trustee may be removed at any time by an instrument or concurrent instruments
in writing filed with such Trustee and signed and acknowledged by the Holders
of a majority in principal amount of the then outstanding Notes or by their
attorneys in fact duly authorized.

(c)           So
long as no Event of Default has occurred and is continuing, and no event has
occurred and is continuing that, with the giving of notice or the lapse of time
or both, would become an Event of Default, the Company may remove any Trustee
upon written notice to the Holder of each Note Outstanding and the Trustee and
appoint a successor Trustee meeting the requirements of Section 9.09. The
Company or the successor Trustee shall give notice to the Holders, in the
manner provided in Section 15.10, of such removal and appointment within
30 days of such removal and appointment.

(d)           If
at any time (i) the Trustee shall cease to be eligible in accordance with Section 9.09
hereof and shall fail to resign after written request therefor by the Company
or by any Holder who has been a bona fide Holder for at least six months, (ii) the
Trustee shall fail to comply with Section 9.08 hereof after written
request therefor by the Company or any such Holder, or (iii) the Trustee
shall become incapable of acting or shall be adjudged a bankrupt or insolvent
or a receiver of the Trustee or its property shall be appointed or any public
officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, 

 44
 

 

conservation or
liquidation, then the Trustee may be removed forthwith by an instrument or
concurrent instruments in writing filed with the Trustee and either:

(1)           signed
by the President or any Vice President of the Company and attested by the
Secretary or an Assistant Secretary of the Company; or

(2)           signed
and acknowledged by the Holders of a majority in principal amount of outstanding
Notes or by their attorneys in fact duly authorized.

(e)           Any
resignation or removal of the Trustee shall not become effective until
acceptance of appointment by the successor Trustee as provided in Section 9.11
hereof.

Section 9.11           Appointment Of Successor Trustee. (a)  If at
any time the Trustee shall resign or be removed, the Company, by a Board
Resolution, shall promptly appoint a successor Trustee.

(b)           The
Company shall provide written notice of its appointment of a successor Trustee
to the Holder of each Note Outstanding following any such appointment.

(c)           If
no appointment of a successor Trustee shall be made pursuant to Section 9.11(a) hereof
within 60 days after appointment shall be required, any Noteholder or the
resigning Trustee may apply at the expense of the Company to any court of
competent jurisdiction to appoint a successor Trustee. Said court may thereupon
after such notice, if any, as such court may deem proper and prescribe, appoint
a successor Trustee.

(d)           Any
Trustee appointed under this Section 9.11 as a successor Trustee shall be
a bank or trust company eligible under Section 9.09 hereof and qualified
under Section 9.08 hereof.

Section 9.12           Acceptance By Successor Trustee. (a)  Any
successor Trustee appointed as provided in Section 9.11 hereof shall
execute, acknowledge and deliver to the Company and to its predecessor Trustee
an instrument accepting such appointment hereunder, and thereupon the
resignation or removal of the predecessor Trustee shall become effective and
such successor Trustee, without any further act, deed or conveyance, shall
become vested with all the rights, powers, duties and obligations of its
predecessor hereunder, with like effect as if originally named as Trustee
herein; but nevertheless, on the written request of the Company or of the
successor Trustee, the Trustee ceasing to act shall, upon payment of any
amounts then due it pursuant to Section 9.06 hereof, execute and deliver
an instrument transferring to such successor Trustee all the rights and powers
of the Trustee so ceasing to act, including all right, title, and interest in
the Senior Note First Mortgage Bonds. Upon request of any such successor
Trustee, the Company shall execute any and all instruments in writing in order
more fully and certainly to vest in and confirm to such successor Trustee all
such rights and powers. Any Trustee ceasing to act shall, nevertheless, retain
a lien upon all property or funds held or collected by such Trustee to secure
any amounts then due it pursuant to Section 9.06 hereof.

(b)           No
successor Trustee shall accept appointment as provided in this Section 9.12
unless at the time of such acceptance such successor Trustee shall be qualified
under Section 9.08 hereof and eligible under Section 9.09 hereof.

 45
 

 

(c)           Upon
acceptance of appointment by a successor Trustee as provided in this Section 9.12,
the successor Trustee shall mail notice of its succession hereunder to all
Holders of Notes as the names and addresses of such Holders appear on the
registry books.

Section 9.13           Succession By Merger, Etc. (a)  Any
corporation into which the Trustee may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion
or consolidation to which the Trustee shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder without the execution
or filing of any paper or any further act on the part of any of the parties
hereto, provided such corporation shall be otherwise qualified and eligible
under this Article.

(b)           If
at the time such successor to the Trustee shall succeed to the trusts created
by this Indenture any of the Notes shall have been authenticated but not
delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor Trustee, and deliver such Notes so
authenticated; and in case at that time any of the Notes shall not have been
authenticated, any successor to the Trustee may authenticate such Notes either
in the name of any predecessor hereunder or in the name of the successor
Trustee; and in all such cases such certificates shall have the full force
which it is anywhere in the Notes or in this Indenture provided that the certificates
of the Trustee shall have; provided that the right to adopt the certificate of
authentication of any predecessor Trustee or authenticate Notes in the name of
any predecessor Trustee shall apply only to its successor or successors by
merger, conversion or consolidation.

Section 9.14           Limitations On Rights Of Trustee As A Creditor. The Trustee shall be subject to, and shall comply
with, the provisions of Section 311 of the TIA.

Section 9.15           Authenticating Agent. (a)  There may be one or
more Authenticating Agents appointed by the Trustee with the written consent of
the Company, with power to act on its behalf and subject to the direction of
the Trustee in the authentication and delivery of Notes in connection with
transfers and exchanges under Sections 2.06, 2.07, 2.08, 2.13, 3.03, and 13.04
hereof, as fully to all intents and purposes as though such Authenticating
Agents had been expressly authorized by those Sections to authenticate and
deliver Notes. For all purposes of this Indenture, the authentication and
delivery of Notes by any Authenticating Agent pursuant to this Section 9.15
shall be deemed to be the authentication and delivery of such Notes “by the
Trustee.” Any such Authenticating Agent shall be a bank or trust company or
other Person of the character and qualifications set forth in Section 9.09
hereof.

(b)           Any
corporation into which any Authenticating Agent may be merged or converted or
with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which any Authenticating Agent shall be
a party, or any corporation succeeding to the corporate trust business of any
Authenticating Agent, shall be the successor of such Authenticating Agent
hereunder, if such successor corporation is otherwise eligible under this Section 9.15,
without the execution or filing of any paper or any further act on the part of
the parties hereto or such Authenticating Agent or such successor corporation.

 46
 

 

(c)           Any
Authenticating Agent may at any time resign by giving written notice of
resignation to the Trustee and to the Company. The Trustee may at any time
terminate the agency of any Authenticating Agent by giving written notice of
termination to such Authenticating Agent and to the Company. Upon receiving
such a notice of resignation or upon such a termination, or in case at any time
any Authenticating Agent shall cease to be eligible under this Section 9.15,
the Trustee may, with the written consent of the Company, appoint a successor
Authenticating Agent, and upon so doing shall give written notice of such
appointment to the Company and shall mail, in the manner provided in Section 15.10,
notice of such appointment to the Holders of Notes.

(d)           The
Company agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services.

(e)           Sections
9.02, 9.03, 9.06, 9.07 and 9.09 hereof shall be applicable to any
Authenticating Agent.

ARTICLE
X

CONCERNING THE NOTEHOLDERS

Section 10.01         Action By Noteholders. Whenever in this Indenture it
is provided that the Holders of a specified percentage in aggregate principal
amount of the Notes may take any action, the fact that at the time of taking
any such action the Holders of such specified percentage have joined therein
may be evidenced (a) by any instrument or any number of instruments of
similar tenor executed by such Noteholders in person or by agent or proxy
appointed in writing, (b) by the record of such Noteholders voting in
favor thereof at any meeting of Noteholders duly called and held in accordance
with Article XI hereof, or (c) by a combination of such instrument or
instruments and any such record of such a meeting of Noteholders.

Section 10.02         Proof Of Execution By Noteholders. (a)  Subject
to Sections 9.01, 9.02 and 11.05 hereof, proof of the execution of any
instruments by a Noteholder or the agent or proxy for such Noteholder shall be
sufficient if made in accordance with such reasonable rules and
regulations as may be prescribed by the Trustee or in such manner as shall be
satisfactory to the Trustee. The ownership of Notes shall be proved by the
register for the Notes maintained by the Trustee.

(b)           The
record of any Noteholders’ meeting shall be proven in the manner provided in Section 11.06
hereof.

Section 10.03         Persons Deemed Absolute Owners. Subject
to Sections 2.04(f) and 10.01 hereof, the Company, the Trustee, any paying
agent and any Authenticating Agent shall deem the person in whose name any Note
shall be registered upon the register for the Notes to be, and shall treat such
person as, the absolute owner of such Note (whether or not such Note shall be
overdue) for the purpose of receiving payment of or on account of the principal
and premium, if any, and interest on such Note, and for all other purposes; and
neither the Company nor the Trustee nor any paying agent nor any Authenticating
Agent shall be affected by any notice to the 

 47
 

 

contrary. All such payments shall be valid
and effectual to satisfy and discharge the liability upon any such Note to the
extent of the sum or sums so paid.

Section 10.04         Company-Owned Notes Disregarded.
In determining whether the Holders of the requisite aggregate principal amount
of outstanding Notes have concurred in any direction, consent or waiver under
this Indenture, Notes that are owned by the Company or any other obligor on the
Notes or by any person directly or indirectly controlling or controlled by or
under direct or indirect common control with the Company or any other obligor
on the Notes shall be disregarded and deemed not to be outstanding for the purpose
of any such determination; provided that, for the purposes of
determining whether the Trustee shall be protected in relying on any such
direction, consent or waiver, only Notes which a Responsible Officer of the
Trustee actually knows are so owned shall be so disregarded. Notes so owned
which have been pledged in good faith to third parties may be regarded as
outstanding for the purposes of this Section 10.04 if the pledgee shall
establish the pledgee’s right to take action with respect to such Notes and
that the pledgee is not a person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Company or
any such other obligor. In the case of a dispute as to such right, the Trustee
may rely upon an Opinion of Counsel and an Officers’ Certificate to establish
the foregoing.

Section 10.05         Revocation Of Consents; Future
Holders Bound. Except as may be otherwise required in the case of a Global
Note by the applicable rules and regulations of the Depositary, at any
time prior to the taking of any action by the Holders of the percentage in
aggregate principal amount of the Notes specified in this Indenture in
connection with such action, any Holder of a Note, which has been included in
the Notes the Holders of which have consented to such action may, by filing
written notice with the Trustee at the corporate trust office of the Trustee
and upon proof of ownership as provided in Section 10.02(a) hereof,
revoke such action so far as it concerns such Note. Except as aforesaid, any
such action taken by the Holder of any Note shall be conclusive and binding
upon such Holder and upon all future Holders and owners of such Note and of any
Notes issued in exchange, substitution or upon registration of transfer
therefor, irrespective of whether or not any notation thereof is made upon such
Note or such other Notes.

Section 10.06         Record Date For Noteholder Acts.
If the Company shall solicit from the Noteholders any request, demand,
authorization, direction, notice, consent, waiver or other act, the Company
may, at its option, by Board Resolution, fix in advance a record date for the
determination of Noteholders entitled to give such request, demand,
authorization, direction, notice, consent, waiver or other act, but the Company
shall have no obligation to do so. If such a record date is fixed, such
request, demand, authorization, direction, notice, consent, waiver or other act
may be given before or after the record date, but only the Noteholders of
record at the close of business on the record date shall be deemed to be
Noteholders for the purpose of determining whether Holders of the requisite
aggregate principal amount of outstanding Notes have authorized or agreed or
consented to such request, demand, authorization, direction, notice, consent,
waiver or other act, and for that purpose the outstanding Notes shall be
computed as of the record date; provided that no such request, demand,
authorization, direction, notice, consent, waiver or other act by the
Noteholders on the record date shall be deemed effective unless it shall become
effective pursuant to this Indenture not later than six months after the record
date. Any 

 48
 

 

such record date shall be at least 30 days
prior to the date of the solicitation to the Noteholders by the Company.

ARTICLE XI

NOTEHOLDERS’ MEETING

Section 11.01         Purposes Of Meetings. A meeting
of Noteholders may be called at any time and from time to time pursuant to this
Article XI for any of the following purposes:

(a)           to
give any notice to the Company or to the Trustee, or to give any directions to
the Trustee, or to consent to the waiving of any Event of Default hereunder and
its consequences, or to take any other action authorized to be taken by
Noteholders pursuant to Article XIII;

(b)           to
remove the Trustee pursuant to Article IX;

(c)           to
consent to the execution of an indenture or indentures supplemental hereto
pursuant to Section 13.02 hereof; or

(d)           to
take any other action authorized to be taken by or on behalf of the Holders of
any specified aggregate principal amount of the Notes, as the case may be,
under any other provision of this Indenture or under applicable law.

Section 11.02         Call Of Meetings By Trustee. The Trustee may at any
time call a meeting of Holders of Notes to take any action specified in Section 11.01
hereof, to be held at such time and at such place as the Trustee shall
determine. Notice of every such meeting of Noteholders, setting forth the time
and the place of such meeting and in general terms the action proposed to be
taken at such meeting, shall be given to Holders of the Notes that may be
affected by the action proposed to be taken at such meeting in the manner
provided in Section 15.10 hereof. Such notice shall be given not less than
20 nor more than 90 days prior to the date fixed for such meeting.

Section 11.03         Call Of Meetings By Company Or Noteholders. If at any
time the Company, pursuant to a Board Resolution, or the Holders of at least
10% in aggregate principal amount of the Notes then outstanding, shall have
requested the Trustee to call a meeting of Noteholders, by written request
setting forth in reasonable detail the action proposed to be taken at the
meeting, and the Trustee shall not have mailed the notice of such meeting
within 20 days after receipt of such request, then the Company or such
Noteholders may determine the time and the place for such meeting and may call
such meeting to take any action authorized in Section 11.01 hereof, by
giving notice thereof as provided in Section 11.02 hereof.

Section 11.04         Qualifications For Voting. To be entitled to vote at
any meetings of Noteholders a Person shall (a) be a Holder of one or more
Notes affected by the action proposed to be taken or (b) be a Person
appointed by an instrument in writing as proxy by a Holder of one or more such
Notes. The only Persons who shall be entitled to be present or to speak at any
meeting of Noteholders shall be the Persons entitled to vote at such meeting
and their counsel 

 49
 

 

and any representatives (including employees) of the Trustee and its
counsel and any representatives (including employees) of the Company and its
counsel.

Section 11.05         Regulations. (a)  Notwithstanding any other
provisions of this Indenture, the Trustee may make such reasonable regulations
as it may deem advisable for any meeting of Noteholders in regard to proof of
the holding of Notes and of the appointment of proxies, and in regard to the
appointment and duties of inspectors of votes, the submission and examination
of proxies, certificates and other evidence of the right to vote, and such
other matters concerning the conduct of the meeting as it shall think fit.

(b)           The
Trustee shall, by an instrument in writing, appoint a temporary chairman of the
meeting, unless the meeting shall have been called by the Company or by the Noteholders
as provided in Section 11.03 hereof, in which case the Company or
Noteholders calling the meeting, as the case may be, shall in like manner
appoint a temporary chairman. A permanent chairman and a permanent secretary of
the meeting shall be elected by the Holders of a majority in aggregate
principal amount of the Notes present in person or by proxy at the meeting.

(c)           Subject
to Section 10.04 hereof, at any meeting each Noteholder or proxy shall be
entitled to one vote for each $1,000 principal amount of Notes held or
represented by such Noteholder; provided that no vote shall be cast or
counted at any meeting in respect of any Note determined to be not outstanding.
The chairman of the meeting shall have no right to vote other than by virtue of
Notes held by such chairman or instruments in writing as aforesaid duly
designating such chairman as the person to vote on behalf of other Noteholders.
At any meeting of Noteholders duly called pursuant to Section 11.02 or
11.03 hereof, the presence of persons holding or representing Notes in an
aggregate principal amount sufficient to take action on any business for the
transaction for which such meeting was called shall constitute a quorum. Any
meeting of Noteholders duly called pursuant to Section 11.02 or 11.03
hereof may be adjourned from time to time by the Holders of a majority in
aggregate principal amount of the Notes present in person or by proxy at the
meeting, whether or not constituting a quorum, and the meeting may be held as
so adjourned without further notice.

Section 11.06         Voting. The vote upon any resolution submitted to any
meeting of Noteholders shall be by written ballots on which shall be subscribed
the signatures of the Holders of Notes or of their representatives by proxy and
the principal amount of Notes held or represented by them. The permanent
chairman of the meeting shall appoint two inspectors of votes who shall count
all votes cast at the meeting for or against any resolution and who shall make
and file with the secretary of the meeting their verified written reports in
duplicate of all votes cast at the meeting. A record in duplicate of the
proceedings of such meeting of Noteholders shall be prepared by the secretary
of the meeting and there shall be attached to said record the original reports
of the inspectors of votes on any vote by ballot taken thereat and affidavits
by one or more persons having knowledge of the facts setting forth a copy of
the notice of the meeting and showing that said notice was given as provided in
Section 11.02 hereof. The record shall show the aggregate principal amount
of the Notes voting in favor of or against any resolution. The record shall be
signed and verified by the affidavits of the permanent chairman and secretary
of the meeting and one of the duplicates shall be delivered to the Company and
the other to the Trustee to be preserved by the Trustee and the Trustee shall
have the ballots taken at 

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the meeting attached to such duplicate. Any record so
signed and verified shall be conclusive evidence of the matters therein stated.

Section 11.07         Rights Of Trustee Or Noteholders Not Delayed. Nothing
in this Article XI shall be deemed or construed to authorize or permit, by
reason of any call of a meeting of Noteholders or any rights expressly or
impliedly conferred hereunder to make such call, any hindrance or delay in the
exercise of any right or rights conferred upon or reserved to the Trustee or to
the Holders of Notes under any of the provisions of this Indenture or of the
Notes.

ARTICLE
XII

CONSOLIDATION, MERGER, SALE, TRANSFER OR CONVEYANCE

Section 12.01         Company May Consolidate, Etc. Only On Certain Terms.
The Company shall not consolidate with or merge into any other corporation or
sell or otherwise dispose of its properties as or substantially as an entirety
to any Person unless the Company has delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel each stating that such consolidation,
merger, conveyance or transfer and the supplemental indenture referred to in
clause (b) below comply with this Article XII and that all conditions
precedent herein provided for have been complied with, and the corporation
formed by such consolidation or into which the Company is merged or the Person
which receives such properties pursuant to such sale, transfer or other
disposition (a) shall be a corporation organized and existing under the
laws of the United States of America, any state thereof or the District of
Columbia; (b) shall expressly assume, by an indenture supplemental hereto,
executed and delivered to the Trustee, in form reasonably satisfactory to the
Trustee, the due and punctual payment of the principal of and premium and
interest on all of the Notes and the performance of every covenant of this
Indenture on the part of the Company to be performed or observed and (c) if
such consolidation, merger, sale, transfer or other disposition occurs prior to
the Release Date, shall expressly assume, by an indenture supplemental to the
First Mortgage, executed and delivered to the Mortgage Trustee, the due and
punctual payment of the principal of and premium and interest on all of the
Senior Note First Mortgage Bonds and the performance of every covenant of the
First Mortgage on the part of the Company to be performed or observed.

Anything in this Indenture to the contrary
notwithstanding, the conveyance or other transfer by the Company of (a) all
of its facilities for the transmission of electric energy, or (b) all of
its facilities for the distribution of natural gas, or (c) the common stock the Company holds of
its subsidiary, AmerenEnergy Resources Generating Company, in each case
considered alone or in any combination with properties described in any other
clause, shall in no event be deemed to constitute a conveyance or other
transfer of all the properties of the Company, as or substantially as an
entirety. The character of particular facilities shall be determined in
accordance with the Uniform System of Accounts prescribed for public utilities
and licensees subject to the Federal Power Act, as amended, to the extent
applicable.

Section 12.02         Successor Corporation Substituted. Upon any
consolidation or merger, or any sale, transfer or other disposition of the
properties of the Company substantially as an entirety in accordance with Section 12.01
hereof, the successor corporation formed by such consolidation or into which
the Company is merged or the Person to which such sale, transfer or 

 51
 

 

other disposition is made shall succeed to, and be
substituted for and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor corporation or Person
had been named as the Company herein and the Company shall be released from all
obligations hereunder.

ARTICLE
XIII

SUPPLEMENTAL INDENTURES

Section 13.01         Supplemental Indentures Without Consent Of Noteholders.
(a)  The Company, when authorized by Board Resolution, and the Trustee may
from time to time and at any time enter into an indenture or indentures
supplemental hereto for one or more of the following purposes:

(1)           to
make such provision in regard to matters or questions arising under this
Indenture as may be necessary or desirable, and not inconsistent with this
Indenture or prejudicial to the interests of the Holders in any material
respect, for the purpose of supplying any omission, curing any ambiguity, or
curing, correcting or supplementing any defective or inconsistent provision;

(2)           to
change or eliminate any of the provisions of this Indenture, provided
that any such change or elimination shall become effective only when there is
no Note outstanding created prior to the execution of such supplemental
indenture which is entitled to the benefit of such provision or such change or
elimination is applicable only to Notes issued after the effective date of such
change or elimination;

(3)           to
establish the form of Notes of any series as permitted by Section 2.01
hereof or to establish or reflect any terms of any Note of any series
determined pursuant to Section 2.05 hereof;

(4)           to
evidence the succession of another corporation to the Company as permitted
hereunder, and the assumption by any such successor of the covenants of the
Company herein and in the Notes;

(5)           to
grant to or confer upon the Trustee for the benefit of the Holders any
additional rights, remedies, powers or authority;

(6)           to
permit the Trustee to comply with any duties imposed upon it by law;

(7)           to
specify further the duties and responsibilities of, and to define further the
relationships among, the Trustee, any Authenticating Agent and any paying
agent, and to evidence the succession of a successor Trustee as permitted
hereunder;

(8)           to
add to the covenants of the Company for the benefit of the Holders of one or
more series of Notes, to add to the security for all of the Notes, to surrender
a right or power conferred on the Company herein or to add any Event of Default
with respect to one or more series of Notes;

 

 52

 

(9)           to
add provisions permitting the Company to be released with respect to one or
more series of outstanding Notes from its obligations under Sections 6.07, 6.08
or Article XII (and providing that no Event of Default shall be deemed to
have occurred as a result of the Company’s noncompliance with such obligations)
if the Company makes the deposit of cash and/or U.S. Government Obligations
with respect to such series of Notes required by Section 5.01 and
otherwise complies with the requirements of such Section (except that the
opinion of counsel referred to in Section 5.01(a)(3) need not be
based on an External Tax Pronouncement);

(10)         to
comply with the Company’s obligations under Section 6.07; and

(11)         to
make any other change that is not prejudicial to the Holders.

(b)           The
Trustee is hereby authorized to join with the Company in the execution of any
such supplemental indenture, to make any further appropriate agreements and
stipulations which may be therein contained and to accept the conveyance,
transfer and assignment of any property thereunder, but the Trustee shall not
be obligated to enter into any such supplemental indenture which affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise.

(c)           Any
supplemental indenture authorized by this Section 13.01 may be executed by
the Company and the Trustee without the consent of the Holders of any of the
Notes at the time outstanding, notwithstanding any of the provisions of Section 13.02
hereof.

Section 13.02         Supplemental Indentures With Consent
Of Noteholders. (a)  With the consent (evidenced as provided in Section 10.01
hereof) of the Holders of a majority in aggregate principal amount of the Notes
of all series at the time outstanding, considered as one class, the Company,
when authorized by Board Resolution, and the Trustee may from time to time and
at any time enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to, or changing in any manner or eliminating
any of the provisions of, this Indenture or of any supplemental indenture or of
modifying or waiving in any manner the rights of the Noteholders; provided that
no such supplemental indenture shall:

(1)           change
the Stated Maturity of any Note, or reduce the rate (or change the method of
calculation thereof) or extend the time of payment of interest thereon, or
reduce the principal amount thereof or any premium thereon, or change the coin
or currency in which the principal of any Note or any premium or interest
thereon is payable, or change the date on which any Note may be redeemed or
adversely affect the rights of the Noteholders to institute suit for the
enforcement of any payment of principal of or any premium or interest on any
Note, or impair the interest hereunder of the Trustee in the Senior Note First
Mortgage Bonds, or prior to the Release Date, reduce the principal amount of
any series of Senior Note First Mortgage Bonds to an amount less than the
principal amount of the Related Series of Notes or alter the payment
provisions of such Senior Note First Mortgage Bonds in a manner adverse to the
Holders of the Notes, in each case without the consent of the Holder of each
Note so affected; or

 53
 

 

(2)           modify
this Section 13.02(a) or reduce the aforesaid percentage of Notes,
the Holders of which are required to consent to any such supplemental indenture
or to reduce the percentage of Notes, the Holders of which are required to
waive Events of Default, in each case, without the consent of the Holders of
all of the Notes affected thereby then outstanding.

(b)           Upon
the request of the Company, accompanied by a copy of the Board Resolution
authorizing the execution of any such supplemental indenture, and upon the
filing with the Trustee of evidence of the consent of Noteholders as aforesaid,
the Trustee shall join with the Company in the execution of such supplemental
indenture unless such supplemental indenture affects the Trustee’s own rights,
duties or immunities under this Indenture or otherwise, in which case the
Trustee may in its discretion, but shall not be obligated to, enter into such
supplemental indenture.

(c)           A
supplemental indenture which changes, waives or eliminates any covenant or
other provision of this Indenture (or any supplemental indenture) which has
expressly been included solely for the benefit of one or more series of Notes,
or which modifies the rights of the Holders of Notes of such series with
respect to such covenant or provision, shall be deemed not to affect the rights
under this Indenture of the Holders of Notes of any other series.

(d)           It
shall not be necessary for the consent of the Holders of Notes under this Section 13.02
to approve the particular form of any proposed supplemental indenture, but it
shall be sufficient if such consent shall approve the substance thereof.

(e)           Promptly
after the execution by the Company and the Trustee of any supplemental
indenture pursuant to this Section 13.02, the Trustee shall give notice in
the manner provided in Section 15.10 hereof, setting forth in general
terms the substance of such supplemental indenture, to all Noteholders. Any
failure of the Trustee to give such notice or any defect therein shall not,
however, in any way impair or affect the validity of any such supplemental
indenture.

Section 13.03         Compliance With Trust Indenture Act;
Effect Of Supplemental Indentures. Any supplemental indenture executed
pursuant to this Article XIII shall comply with the TIA. Upon the
execution of any supplemental indenture pursuant to this Article XIII, the
Indenture shall be and be deemed to be modified and amended in accordance
therewith and the respective rights, limitations of rights, obligations, duties
and immunities under this Indenture of the Trustee, the Company and the
Noteholders shall thereafter be determined, exercised and enforced hereunder
subject in all respects to such modifications and amendments, and all the terms
and conditions of any such supplemental indenture shall be and be deemed to be
part of the terms and conditions of this Indenture for any and all purposes.

Section 13.04         Notation On Notes. Notes of any
series authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article XIII may bear a notation in form
approved by the Trustee as to any matter provided for in such supplemental
indenture. If the Company shall so determine, new Notes of any series so
modified as approved by the Trustee and the Board of Directors with respect to
any modification of this Indenture contained in any 

 54
 

 

such supplemental
indenture may be prepared and executed by the Company, authenticated by the
Trustee and delivered in exchange for the Notes of such series then
outstanding.

Section 13.05         Evidence Of Compliance Of
Supplemental Indenture To Be Furnished Trustee. The Trustee, subject to
Sections 9.01 and 9.02 hereof, shall be provided with an Officers’ Certificate
and an Opinion of Counsel as conclusive evidence that any supplemental
indenture executed pursuant hereto complies with the requirements of this Article XIII.

ARTICLE XIV

IMMUNITY OF INCORPORATORS,

STOCKHOLDERS, OFFICERS AND DIRECTORS

Section 14.01         Indenture And Notes Solely Corporate
Obligations. No recourse for the payment of the principal of or any premium
or interest on any Note or any Senior Note First Mortgage Bond, or for any
claim based thereon or otherwise in respect thereof, and no recourse under or
upon any obligation, covenant or agreement of the Company, contained in this
Indenture, the First Mortgage or in any supplemental indenture, or in any Note
or in any Senior Note First Mortgage Bond, or because of the creation of any
indebtedness represented thereby, shall be had against any incorporator,
stockholder, officer or director, as such, past, present or future, of the
Company or of any successor corporation, either directly or through the Company
or any successor corporation, whether by virtue of any constitution, statute or
rule of law, or by the enforcement of any assessment or penalty or
otherwise; it being expressly understood that all such liability is hereby
expressly waived and released as a condition of, and as a consideration for,
the execution of this Indenture and the issuance of the Notes.

ARTICLE XV

MISCELLANEOUS PROVISIONS

Section 15.01         Provisions Binding On Company’s
Successors. All the covenants, stipulations, promises and agreements made
by the Company in this Indenture shall bind its successors and assigns whether
so expressed or not.

Section 15.02         Official Acts By Successor
Corporation. Any act or proceeding by any provision of this Indenture
authorized or required to be done or performed by any board, committee or
officer of the Company shall and may be done and performed with like force and
effect by the like board, committee or officer of any corporation that shall at
the time be the lawful successor of the Company.

Section 15.03         Notices. Any notice or demand
which by any provision of this Indenture is required or permitted to be given
or served by the Trustee or by the Noteholders on the Company may be given or
served by being deposited postage prepaid in a post office letter box addressed
(until another address is filed by the Company with the Trustee) at the
Principal Executive Offices of the Company, to the attention of the Secretary.
Any notice, direction, request or demand by any Noteholder, the Company or the
Mortgage Trustee to or upon the Trustee shall be deemed to have been
sufficiently given or made, for all purposes, if given or 

 55
 

 

made in writing at the
Corporate Trust Office of the Trustee, Attention: Corporate Trust
Administration.

Section 15.04         Governing Law. This Indenture
and each Note shall be governed by and deemed to be a contract under, and
construed in accordance with, the laws of the State of New York, and for all
purposes shall be construed in accordance with the laws of said State without regard
to conflicts of law principles thereof.

Section 15.05         Evidence Of Compliance With
Conditions Precedent. (a)  Upon any application or demand by the
Company to the Trustee to take any action under this Indenture, the Company
shall furnish to the Trustee an Officers’ Certificate stating that all
conditions precedent, if any, provided for in this Indenture (including any
covenants compliance with which constitutes a condition precedent) relating to
the proposed action have been complied with and an Opinion of Counsel stating
that, in the opinion of such counsel, all such conditions precedent have been
complied with.

(b)           Each
certificate or opinion provided for in this Indenture and delivered to the
Trustee with respect to compliance with a condition or covenant provided for in
this Indenture (other than the certificates delivered pursuant to Section 6.06
hereof) shall include (1) a statement that each Person making such
certificate or opinion has read such covenant or condition and the definitions
relating thereto; (2) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based; (3) a statement that, in the
opinion of each such Person, such Person has made such examination or
investigation as is necessary to enable such Person to express an informed
opinion as to whether or not such covenant or condition has been complied with;
and (4) a statement as to whether or not, in the opinion of each such Person,
such condition or covenant has been complied with.

(c)           In
any case where several matters are required to be certified by, or covered by
an opinion of, any specified Person, it is not necessary that all such matters
be certified by, or covered by the opinion of, only one such Person, or that
they be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other
such Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents.

(d)           Any
certificate or opinion of an officer of the Company may be based, insofar as it
relates to legal matters, upon a certificate or opinion of, or representations
by, counsel, unless such officer knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
the matters upon which such certificate or opinion is based are erroneous. Any
such certificate or opinion of counsel delivered under the Indenture may be
based, insofar as it relates to factual matters, upon a certificate or opinion
of, or representations by, an officer or officers of the Company stating that
the information with respect to such factual matters is in the possession of
the Company, unless such person knows, or in the exercise of reasonable care
should know, that the certificate or opinion of representations with respect to
such matters are erroneous. Any opinion of counsel delivered hereunder may contain
standard exceptions and qualifications reasonably satisfactory to the Trustee.

 56
 

 

(e)           Any
certificate, statement or opinion of any officer of the Company, or of counsel,
may be based, insofar as it relates to accounting matters, upon a certificate
or opinion of or representations by an independent public accountant or firm of
accountants, unless such officer or counsel, as the case may be, knows that the
certificate or opinions or representations with respect to the accounting
matters upon which the certificate, statement or opinion of such officer or
counsel may be based as aforesaid are erroneous, or in the exercise of
reasonable care should know that the same are erroneous. Any certificate or
opinion of any firm of independent public accountants filed with the Trustee
shall contain a statement that such firm is independent.

(f)            Where
any Person is required to make, give or execute two or more applications,
requests, consents, certificates, statements, opinions or other instruments
under this Indenture, they may, but need not, be consolidated and form one
instrument.

Section 15.06         Business Days. Unless otherwise
provided pursuant to Section 2.05(c) hereof, in any case where the
date of Maturity of the principal of or any premium or interest on any Note or
the date fixed for redemption of any Note is not a Business Day, then payment
of such principal or any premium or interest 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 date of Maturity or the date fixed for redemption, and, in
the case of timely payment thereof, no interest shall accrue for the period
from and after such Interest Payment Date or the date on which the principal or
premium of the Note is required to be paid.

Section 15.07         Trust Indenture Act To Control. If
and to the extent that any provision of this Indenture limits, qualifies or
conflicts with the duties imposed by the TIA, such required provision of the
TIA shall govern.

Section 15.08         Table Of Contents, Headings, Etc.
The table of contents and the titles and headings of the articles and sections
of this Indenture have been inserted for convenience of reference only, are not
to be considered a part hereof, and shall in no way modify or restrict any of
the terms or provisions hereof.

Section 15.09         Execution In Counterparts. This
Indenture may be executed in any number of counterparts, each of which shall be
an original, but such counterparts shall together constitute but one and the
same instrument.

Section 15.10         Manner Of Mailing Notice To
Noteholders. (a)  Any notice or demand which by any provision of this
Indenture is required or permitted to be given or served by the Trustee or the
Company to or on the Holders of Notes, as the case may be, shall be given or
served by first-class mail, postage prepaid, addressed to the Holders of such
Notes at their last addresses as the same appear on the register for the Notes
referred to in Section 2.06, and any such notice shall be deemed to be
given or served by being deposited in a post office letter box in the form and
manner provided in this Section 15.10. In case by reason of the suspension
of regular mail service or by reason of any other cause it shall be
impracticable to give notice to any Holder by mail, then such notification to
such Holder as shall be made with the approval of the Trustee shall constitute
a sufficient notification for every purpose hereunder.

 57
 

 

(b)           The
Company shall also provide any notices required under this Indenture by
publication, but only to the extent that such publication is required by the
TIA, the rules and regulations of the Commission or any securities
exchange upon which any series of Notes is listed.

Section 15.11         Approval By Trustee Of Expert Or
Counsel. Wherever the Trustee is required to approve an Expert or counsel
who is to furnish evidence of compliance with conditions precedent in this
Indenture, such approval by the Trustee shall be deemed to have been given upon
the taking of any action by the Trustee pursuant to and in accordance with the
certificate or opinion so furnished by such Expert or counsel.

Section 15.12         Force Majeure. In no event shall
the Trustee be responsible or liable for any failure or delay in the
performance of its obligations hereunder arising out of or caused by, directly
or indirectly, forces beyond its control, including, without limitation,
strikes, work stoppages, accidents, acts of war or terrorism, civil or military
disturbances, nuclear or natural catastrophes or acts of God, and
interruptions, loss or malfunctions of utilities, communications or computer
(software and hardware) services; it being understood that the Trustee shall
use reasonable efforts which are consistent with accepted practices in the
banking industry to resume performance as soon as practicable under the
circumstances.

 58

 

IN WITNESS WHEREOF, CENTRAL ILLINOIS LIGHT COMPANY has caused this Indenture to be
signed and acknowledged by its Vice President, and attested by its Assistant
Secretary, and The Bank of New York Trust Company, N.A. has caused this
Indenture to be signed and acknowledged by its agent, as of the day and year
first written above.

	
  

  	
  CENTRAL ILLINOIS LIGHT COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Jerre E. Birdsong

  
	
   

  	
   

  	
  Name: Jerre E. Birdsong

  
	
   

  	
   

  	
  Title: Vice President and Treasurer

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Ronald S. Gieseke

  	
   

  	
   

  
	
  Name: Ronald S. Gieseke

  	
   

  	
   

  
	
  Title: Assistant Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

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

  AS TRUSTEE

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ / Daniel G. Dwyer

  
	
   

  	
   

  	
  Name:   Daniel G. Dwyer

  
	
   

  	
   

  	
  Title:     Vice President

  

 

 

 

EXHIBIT A

FORM OF GLOBAL NOTE

[PRIOR TO RELEASE DATE]

	
  REGISTERED

  	
  REGISTERED

  

 

Ill. C. C. No.          

THIS NOTE IS A GLOBAL NOTE REGISTERED IN THE NAME OF
THE DEPOSITARY (REFERRED TO HEREIN) OR A NOMINEE THEREOF AND, UNLESS AND UNTIL
IT IS EXCHANGED IN WHOLE FOR THE INDIVIDUAL NOTES REPRESENTED HEREBY AS
PROVIDED IN THE INDENTURE REFERRED TO BELOW, THIS 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 NOTE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW
YORK, NEW YORK), TO THE TRUSTEE FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

CENTRAL ILLINOIS LIGHT COMPANY

SENIOR NOTE,       % DUE             

	
  CUSIP:

  	
  NUMBER:

  
	
   

  	
   

  
	
  ORIGINAL ISSUE DATE:

  	
  PRINCIPAL AMOUNT:

  
	
   

  	
   

  
	
  INTEREST RATE:

  	
  MATURITY DATE:

  

 

CENTRAL ILLINOIS LIGHT COMPANY,
a corporation of the State of Illinois (the “COMPANY”), for value received
hereby promises to pay to CEDE & CO. or registered assigns, the
principal sum of                     
DOLLARS ($                    )
on the Maturity Date set forth above, and to pay interest thereon from                   
or from the most recent Interest Payment Date to which interest has been paid
or duly provided for, semi-annually in arrears on the               
and              
in each year, commencing               
, at the per annum Interest Rate set forth above, until the principal hereof is
paid or made available for payment. No interest shall accrue on the Maturity
Date, so long as the principal amount of this Note is paid on the Maturity Date.
The interest so payable and punctually paid or duly provided for on any such
Interest Payment Date (except for interest payable on the Maturity Date set
forth above or, if applicable, upon redemption or acceleration) will, as
provided in the Indenture (as defined below), be paid to the Person in whose
name this

 A-1
 

 

Note is registered at the
close of business on the Regular Record Date for such interest, which shall be
the                
or                ,
as the case may be, next preceding such Interest Payment Date; provided that
the first Interest Payment Date for any part of this Note, the Original Issue
Date of which is after a Regular Record Date but prior to the applicable
Interest Payment Date, shall be the Interest Payment Date following the next
succeeding Regular Record Date; and provided that interest payable on the
Maturity Date set forth above or, if applicable, upon redemption or
acceleration, shall be payable to the Person to whom principal shall be
payable. Except as otherwise provided in the Indenture, any such interest not
so punctually paid or duly provided for shall forthwith cease to be payable to
the Holder on such Regular Record Date and shall be paid to the Person in whose
name this Note is registered at the close of business on a Special Record Date
for the payment of such defaulted interest to be fixed by the Trustee, notice
whereof shall be given to Noteholders not more than fifteen days or fewer than
ten days prior to such Special Record Date. Payment of the principal of and
interest and premium on this Note shall be payable pursuant to Section 2.12(a) of
the Indenture.

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

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

From and after such time as all first mortgage bonds
(other than Senior Note First Mortgage Bonds) issued under the First Mortgage
have been retired through payment, redemption or otherwise at, before or after
the maturity thereof (the “Release Date”), the Senior Note First Mortgage Bonds
shall cease to secure the Notes in any manner. In certain 

 A-2
 

 

circumstances prior to
the Release Date as provided in the Indenture, the Company is permitted to
reduce the aggregate principal amount of a series of Senior Note First Mortgage
Bonds held by the Trustee, but in no event prior to the Release Date to an
amount less than the aggregate outstanding principal amount of the series of
Notes initially issued contemporaneously with such Senior Note First Mortgage
Bonds.

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

[Insert redemption
provisions, if any]

Interest payments for this Note shall be computed and
paid on the basis of a 360-day year of twelve 30-day months (and
for any partial periods shall be calculated on the basis of the number of days
elapsed in a 360-day year of twelve 30-day months). If any Interest
Payment Date or date on which the principal of this Note is required to be paid
is not a Business Day, then payment of principal, premium or interest 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 such Interest Payment Date or date on
which the principal of this Note is required to be paid and, in the case of
timely payment thereof, no interest shall accrue for the period from and after
such Interest Payment Date or the date on which the principal of this Note is
required to be paid.

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

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

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

 A-3
 

 

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

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

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

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

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

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

 A-4
 

 

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

	
  

  	
  CENTRAL ILLINOIS LIGHT COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  TRUSTEE’S CERTIFICATE

  	
   

  
	
  OF AUTHENTICATION

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  
	
   

  	
   

  
	
  This Note is one of the Notes
  of the series herein

  	
   

  
	
  designated, described or
  provided for in the within-

  	
   

  
	
  mentioned Indenture.

  	
   

  
	
   

  	
   

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

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Authorized Signatory

  	
   

  
				

 

 A-5
 

 

 

ABBREVIATIONS

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

	
  TEN COM — as tenants in common

  	
  UNIF GIFT

  
	
   

  	
  MIN ACT -

  	
   

  	
  Custodian

  	
   

  
	
   

  	
   

  	
  (Cust)

  	
   

  	
  (Minor)

  
	
   

  	
   

  
	
  TEN ENT — as tenants by the entireties

  	
  Under Uniform Gifts to Minors

  
	
   

  	
   

  
	
  JT TEN — as joint tenants with right

  	
   

  
	
   of survivorship and not as
  tenants in

  	
   

  
	
   common

  	
   

  
	
   

  	
  State

  

 

Additional abbreviations may also be used 

though not in the above list.

FOR VALUE RECEIVED the undersigned hereby sell(s),

assign(s) and transfer(s) unto

PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

	
   

  	
   

  
	
  

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Please print or typewrite name and address

  including postal zip code of assignee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  the within note and all rights
  thereunder, hereby irrevocably constituting and appointing attorney to
  transfer said note on the books of the Company, with full power of
  substitution in the premises.

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  Signature(s) must be
  guaranteed by a financial institution that is a member of the Securities
  Transfer Agents Medallion Program (“STAMP”), the Stock Exchange Medallion
  Program (“SEMP”) or the New York Stock Exchange, Inc. Medallion
  Signature Program(“MSP”).

  
					

 

 A-6

 

 

EXHIBIT B

FORM OF NOTE

PRIOR TO RELEASE DATE

REGISTERED                                                                                                                                                           REGISTERED

Ill. C. C. No.         

CENTRAL ILLINOIS LIGHT COMPANY 

SENIOR NOTE,      % DUE          

	
  CUSIP:

  	
  PRINCIPAL AMOUNT:

  
	
  ORIGINAL ISSUE DATE:

  	
  MATURITY DATE:

  
	
  INTEREST RATE:

  	
  NUMBER:

  

 

CENTRAL ILLINOIS LIGHT COMPANY,
a corporation of the State of Illinois (the “COMPANY”), for value received
hereby promises to pay to                
or registered assigns, the principal sum of                
DOLLARS ($               )
on the Maturity Date set forth above, and
to pay interest thereon from                 or from the most recent date to which interest
has been paid or duly provided for, semi-annually in arrears on                 and                 in each year, commencing                , at the per annum Interest Rate set forth above,
until the principal hereof is paid or made available for payment. No interest
shall accrue on the Maturity Date, so long as the principal amount of this Note
is paid in full on the Maturity Date. The interest so payable and punctually
paid or duly provided for on any such Interest Payment Date (except for
interest payable on the Maturity Date set forth above or, if applicable, upon
redemption or acceleration) will, as provided in the Indenture (as defined
below), be paid to the Person in whose name this Note is registered at the
close of business on the Regular Record Date for such interest, which shall be
the                 or                , as the case may be, next preceding such
Interest Payment Date; provided that the first Interest Payment Date for any
Note of this Series, the Original Issue Date of which is after a Regular Record
Date but prior to the applicable Interest Payment Date, shall be the Interest
Payment Date following the next succeeding Regular Record Date; and provided,
further, that interest payable on the Maturity Date set forth above or, if
applicable, upon redemption or acceleration, shall be payable to the Person to
whom principal shall be payable. Except as otherwise provided in the Indenture
(referred to on the reverse hereof), any such interest not so punctually paid
or duly provided for will forthwith cease to be payable to the Holder on such
Regular Record Date and shall be paid to the Person in whose name this Note is
registered at the close of business on a Special Record Date for the payment of
such defaulted interest to be fixed by the Trustee, notice whereof shall be
given to Noteholders not more than fifteen days nor fewer than ten days prior
to such Special Record Date. Principal, applicable premium and interest due at
the Maturity of this Note shall be payable in immediately available funds when
due upon presentation and surrender of this Note at the corporate trust office
of the Trustee or at the authorized office of any paying agent in the Borough
of Manhattan, The City and State of New York. Interest on this Note (other than
interest payable at Maturity) shall be paid by check payable in clearinghouse
funds to the Holder as its name appears on the register; provided that if the
Trustee receives a written request from any Holder of Notes, the aggregate
principal amount of all of which having the same Interest Payment Date as this
Note equals or exceeds $10,000,000, on or before the applicable Regular Record
Date for such Interest Payment Date, interest on this Note shall be paid by
wire transfer

 B-1
 

 

of
immediately available funds to a bank within the continental United States
designated by such Holder in its request or by direct deposit into the account
of such Holder designated by such Holder in its request if such account is
maintained with the Trustee or any paying agent.

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

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

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

	
  

  	
  CENTRAL ILLINOIS LIGHT COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  TRUSTEE’S CERTIFICATE

  	
   

  
	
  OF AUTHENTICATION

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  
	
   

  	
   

  
	
  This Note is one of the Notes of the series herein

  	
   

  
	
  designated, described or provided for in the within-

  	
   

  
	
  mentioned Indenture.

  	
   

  
	
   

  	
   

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

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Authorized Signatory

  	
   

  
				

 

 B-2
 

 

 

[FORM OF REVERSE OF NOTE]

CENTRAL ILLINOIS LIGHT COMPANY SENIOR NOTE,    % DUE         

This Note is one of a duly authorized issue of Senior
Notes,     % Due         
(the “NOTES OF THIS SERIES”) of the Company issued and to be issued under an
Indenture dated as of June 1, 2006 between the Company and THE BANK OF NEW YORK TRUST COMPANY, N.A.,
as trustee (the “TRUSTEE”, which term includes any successor Trustee under the
Indenture) and indentures supplemental thereto (collectively, the “INDENTURE”).
Under the Indenture, one or more series of notes may be issued and, as used
herein, the term “Notes” refers to the Notes of this Series and any other
outstanding series of Notes. Reference is hereby made to the Indenture for a
more complete statement of the respective rights, limitations of rights, duties
and immunities thereunder of the Company, the Trustee and the Noteholders and
of the terms upon which the Notes are and are to be authenticated and delivered.
This Note is one of the series designated on the face hereof, limited in
aggregate principal amount to $            .

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

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

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

[Insert redemption
provisions, if any]

 B-3
 

 

Interest payments for this Note shall be computed and
paid on the basis of a 360-day year of twelve 30-day months (and
for any partial periods shall be calculated on the basis of the number of days
elapsed in a 360-day year of twelve 30-day months). If any Interest
Payment Date or the date on which the principal of this Note is required to
paid is not a Business Day, then payment of principal, premium or interest 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 such Interest Payment Date or the
date on which the principal of this Note is required to be paid, and, in the
case of timely payment thereof, no interest shall accrue for the period from
and after such Interest Payment Date or the date on which the principal of this
Note is required to be paid.

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

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

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

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

 B-4
 

 

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

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

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

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

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

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

All terms used in this Note which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.

 B-5
 

 

 

ABBREVIATIONS

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

	
  TEN COM — as tenants in common

  	
  UNIF GIFT

  
	
   

  	
  MIN ACT -

  	
   

  	
  Custodian

  	
   

  
	
   

  	
   

  	
  (Cust)

  	
   

  	
  (Minor)

  
	
   

  	
   

  
	
  TEN ENT — as tenants by the entireties

  	
  Under Uniform Gifts to Minors

  
	
   

  	
   

  
	
  JT TEN — as joint tenants with right

  	
   

  
	
   of survivorship and not as
  tenants in

  	
   

  
	
   common

  	
   

  
	
   

  	
  State

  

 

Additional abbreviations may also be used 

though not in the above list.

FOR VALUE RECEIVED the undersigned hereby sell(s),

assign(s) and transfer(s) unto

PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

	
  

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Please print or typewrite name and address

  including postal zip code of assignee

  
	
   

  	
   

  
	
   

  	
   

  
	
  the within note and all rights thereunder, hereby

  	
   

  
	
  irrevocably constituting and appointing attorney to transfer said note
  on the books of the Company, with full power of substitution in the premises.

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  Signature(s) must be
  guaranteed by a financial institution that is a member of the Securities
  Transfer Agents Medallion Program (“STAMP”), the Stock Exchange Medallion
  Program (“SEMP”) or the New York Stock Exchange, Inc. Medallion
  Signature Program(“MSP”).

  
				

 

 B-6

 

 

EXHIBIT C

FORM OF GLOBAL NOTE

FOLLOWING RELEASE DATE

REGISTERED                                                                                                                                                                       REGISTERED

Ill. C. C. No.         

THIS NOTE IS A GLOBAL NOTE REGISTERED IN THE NAME OF
THE DEPOSITARY (REFERRED TO HEREIN) OR A NOMINEE THEREOF AND, UNLESS AND UNTIL
IT IS EXCHANGED IN WHOLE FOR THE INDIVIDUAL NOTES REPRESENTED HEREBY AS
PROVIDED IN THE INDENTURE REFERRED TO BELOW, THIS 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 NOTE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW
YORK, NEW YORK), TO THE TRUSTEE FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

CENTRAL ILLINOIS LIGHT COMPANY

SENIOR NOTE,      % DUE          

	
  CUSIP:

  	
  NUMBER:

  
	
  ORIGINAL ISSUE DATE:

  	
  PRINCIPAL AMOUNT:

  
	
  INTEREST RATE:

  	
  MATURITY DATE:

  

 

CENTRAL ILLINOIS LIGHT COMPANY,
a corporation of the State of Illinois (the “COMPANY”), for value received
hereby promises to pay to CEDE & CO. or registered assigns, the
principal sum of             
DOLLARS ($            )
on the Maturity Date set forth above, and to pay interest thereon
             or
from the most recent Interest Payment Date to which interest has been paid or
duly provided for, semi-annually in arrears on the             
and              in
each year, commencing             ,
at the per annum Interest Rate set forth above, until the principal hereof is
paid or made available for payment. No interest shall accrue on the Maturity
Date, so long as the principal amount of this Note is paid on the Maturity
Date. The interest so payable and punctually paid or duly provided for on any
such Interest Payment Date (except for interest payable on the Maturity Date
set forth above or, if applicable, upon redemption or acceleration) will, as
provided in the Indenture (as defined below), be paid to the Person in whose
name this Note is registered at the close of business on the Regular Record
Date for such interest, which shall be the             
or              ,
as the case may be, next

 C-1
 

 

preceding such Interest
Payment Date; provided, that the first Interest Payment Date for any part of
this Note, the Original Issue Date of which is after a Regular Record Date but
prior to the applicable Interest Payment Date, shall be the Interest Payment
Date following the next succeeding Regular Record Date; and provided, that
interest payable on the Maturity Date set forth above or, if applicable, upon
redemption or acceleration, shall be payable to the Person to whom principal
shall be payable. Except as otherwise provided in the Indenture, any such
interest not so punctually paid or duly provided for will forthwith cease to be
payable to the Holder on such Regular Record Date and shall be paid to the
Person in whose name this Note is registered at the close of business on a
Special Record Date for the payment of such defaulted interest to be fixed by
the Trustee, notice whereof shall be given to Noteholders not more than fifteen
days or fewer than ten days prior to such Special Record Date. Payment of the
principal of and interest and premium on this shall be payable pursuant to Section 2.12(a) of
the Indenture.

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

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

[Insert redemption
provisions, if any]

Interest payments for this Note shall be computed and
paid on the basis of a 360-day year of twelve 30-day months (and
for any partial period shall be calculated on the basis of the number of days
elapsed in a 360-day year of twelve 30-day months). In any case
where any Interest Payment Date or date on which the principal of this Note is
required to be paid is not a Business Day, then payment of principal, premium
or interest 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 such
Interest Payment Date or date on which the principal of this Note is required
to be paid and, in the case of timely payment thereof, no interest shall accrue
for the period from and after such Interest Payment Date or the date on which
the principal of this Note is required to be paid.

The Company, at its option, and subject to the terms
and conditions provided in the Indenture, will be discharged from any and all
obligations in respect of the Notes (except for certain obligations including
obligations to register the transfer or exchange of Notes, replace

 C-2
 

 

stolen, lost or mutilated
Notes, maintain paying agencies and hold monies for payment in trust, all as
set forth in the Indenture) if the Company deposits with the Trustee money,
U.S. Government Obligations which through the payment of interest thereon and
principal thereof in accordance with their terms will provide money, or a
combination of money and U.S. Government Obligations, in any event in an amount
sufficient, without reinvestment, to pay all the principal of and any premium
and interest on the Notes on the dates such payments are due in accordance with
the terms of the Notes.

If an Event of Default shall occur and be continuing,
the principal of and interest on the Notes may be declared due and payable in
the manner and with the effect provided in the Indenture.

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

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

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

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

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

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

 C-3
 

 

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

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

	
  

  	
  CENTRAL ILLINOIS LIGHT COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
  TRUSTEE’S CERTIFICATE

  	
   

  	
   

  
	
  OF AUTHENTICATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  This Note is one of the Notes of the series herein

  	
   

  	
   

  
	
  designated, described or provided for in the within-

  	
   

  	
   

  
	
  mentioned Indenture.

  	
   

  	
   

  
	
   

  	
   

  	
   

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

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  	
   

  

 

 C-4
 

 

 

ABBREVIATIONS

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

	
  TEN COM — as tenants in common

  	
  UNIF GIFT

  
	
   

  	
  MIN ACT -

  	
   

  	
  Custodian

  	
   

  
	
   

  	
   

  	
  (Cust)

  	
   

  	
  (Minor)

  
	
   

  	
   

  
	
  TEN ENT — as tenants by the entireties

  	
  Under Uniform Gifts to Minors

  
	
   

  	
   

  
	
  JT TEN — as joint tenants with right

  	
   

  
	
   of survivorship and not as
  tenants in

  	
   

  
	
   common

  	
   

  
	
   

  	
  State

  

 

Additional abbreviations may also be used 

though not in the above list.

FOR VALUE RECEIVED the undersigned hereby sell(s),

assign(s) and transfer(s) unto

PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

	
   

  	
   

  
	
  

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Please print or typewrite name and address

  including postal zip code of assignee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  the within note and all rights
  thereunder, hereby irrevocably constituting and appointing attorney to
  transfer said note on the books of the Company, with full power of
  substitution in the premises.

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  Signature(s) must be
  guaranteed by a financial institution that is a member of the Securities
  Transfer Agents Medallion Program (“STAMP”), the Stock Exchange Medallion
  Program (“SEMP”) or the New York Stock Exchange, Inc. Medallion
  Signature Program(“MSP”).

  
					

 

 C-5

 

 

EXHIBIT D

FORM OF NOTE

[FOLLOWING RELEASE DATE]

REGISTERED                                                                                                                                           REGISTERED

Ill. C. C. No.          

CENTRAL ILLINOIS LIGHT COMPANY

SENIOR NOTE,     % DUE           

	
  CUSIP:

  	
  PRINCIPAL AMOUNT:

  
	
  ORIGINAL ISSUE DATE:

  	
  MATURITY DATE:

  
	
  INTEREST RATE:

  	
  NUMBER:

  

 

CENTRAL ILLINOIS LIGHT COMPANY,
a corporation of the State of Illinois (the “COMPANY”), for value received
hereby promises to pay to               or
registered assigns, the principal sum of              
DOLLARS ($             )
on the Maturity Date set forth above, and to pay interest thereon from              
or from the most recent date to which interest has been paid or duly provided
for, semi-annually in arrears on               and
             
in each year, commencing              , at
the per annum Interest Rate set forth above, until the principal hereof is paid
or made available for payment. No interest shall accrue on the Maturity Date,
so long as the principal amount of this Note is paid in full on the Maturity
Date. The interest so payable and punctually paid or duly provided for on any
such Interest Payment Date will (except for interest payable on the Maturity
Date or, if applicable, upon redemption or acceleration), as provided in the
Indenture (as defined below), be paid to the Person in whose name this Note is
registered at the close of business on the Regular Record Date for such
interest, which shall be the               or              
, as the case may be, next preceding such Interest Payment Date; provided that
the first Interest Payment Date for any Note, the Original Issue Date of which
is after a Regular Record Date but prior to the applicable Interest Payment
Date, shall be the Interest Payment Date following the next succeeding Regular
Record Date; and provided, that interest payable on the Maturity Date set forth
above or, if applicable, upon redemption or acceleration, shall be payable to
the Person to whom principal shall be payable. Except as otherwise provided in
the Indenture (referred to on the reverse hereof), any such interest not so
punctually paid or duly provided for will forthwith cease to be payable to the
Holder on such Regular Record Date and shall be paid to the Person in whose
name this Note is registered at the close of business on a Special Record Date
for the payment of such defaulted interest to be fixed by the Trustee, notice
whereof shall be given to Noteholders not more than fifteen days nor fewer than
ten days prior to such Special Record Date. Principal, applicable premium and
interest due at the Maturity of this Note shall be payable in immediately
available funds when due upon presentation and surrender of this Note at the
corporate trust office of the Trustee or at the authorized office of any paying
agent in the Borough of Manhattan, The City and State of New York. Interest on
this Note (other than interest payable at Maturity) shall be paid by check
payable in clearinghouse funds to the Holder as its name appears on the
register; provided, that if the Trustee receives a written request from any
Holder of Notes, the aggregate principal amount of all of which having the same
Interest Payment Date as this Note equals or exceeds $10,000,000, on or before
the applicable Regular Record Date for such Interest

 D-1
 

 

Payment Date, interest on
the Note shall be paid by wire transfer of immediately available funds to a
bank within the continental United States (designated by such Holder in its
request or by direct deposit into the account of such Holder designated by such
Holder in its request if such account is maintained with the Trustee or any
paying agent.

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

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

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

	
  

  	
  CENTRAL ILLINOIS LIGHT COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  TRUSTEE’S CERTIFICATE

  	
   

  
	
  OF AUTHENTICATION

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  
	
   

  	
   

  
	
  This Note is one of the Notes of the series herein

  	
   

  
	
  designated, described or provided for in the within-

  	
   

  
	
  mentioned Indenture.

  	
   

  
	
   

  	
   

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

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Authorized Signatory

  	
   

  
				

 D-2
 

 

 

[FORM OF REVERSE OF NOTE]

CENTRAL ILLINOIS LIGHT COMPANY

SENIOR NOTE,     % DUE          

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

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

[Insert redemption
provisions, if any]

Interest payments for this Note shall be computed and
paid on the basis of a 360-day year of twelve 30-day months (and
for any partial periods shall be calculated on the basis of the number of days
elapsed in a 360-day year of twelve 30-day months). In any case
where any Interest Payment Date or the date on which the principal of this Note
is required to paid is not a Business Day, then payment of principal, premium
or interest 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 such
Interest Payment Date or the date on which the principal of this Note is
required to be paid, and, in the case of timely payment thereof, no interest
shall accrue for the period from and after such Interest Payment Date or the date
on which the principal of this Note is required to be paid.

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

If an Event of Default shall occur and be continuing,
the principal of the Notes may be declared due and payable in the manner and
with the effect provided in the Indenture.

 D-3
 

 

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

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

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

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

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

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

Prior to due presentment of this Note for registration
of transfer, the Company, the Trustee and any agent of the Company or the
Trustee may treat the Person in whose name this

 D-4
 

 

Note is registered as the
owner thereof for all purposes, whether or not this Note is overdue, and
neither the Company, the Trustee nor any such agent shall be affected by notice
to the contrary.

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

All terms used in this Note which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.

 D-5
 

 

 

ABBREVIATIONS

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

	
  TEN COM — as tenants in common

  	
  UNIF GIFT

  
	
   

  	
  MIN ACT -

  	
   

  	
  Custodian

  	
   

  
	
   

  	
   

  	
  (Cust)

  	
   

  	
  (Minor)

  
	
   

  	
   

  
	
  TEN ENT — as tenants by the entireties

  	
  under Uniform Gifts to Minors

  
	
   

  	
   

  
	
  JT TEN — as joint tenants with
  right

  	
   

  
	
   of survivorship and not as tenants in

  	
   

  
	
   common

  	
   

  
	
   

  	
  State

  

 

Additional abbreviations may also be used 

though not in the above list.

FOR VALUE RECEIVED the undersigned hereby sell(s),

assign(s) and transfer(s) unto

PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

	
  

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Please print or typewrite name and address

  including postal zip code of assignee

  
	
   

  	
   

  
	
   

  	
   

  
	
  the within note and all rights
  thereunder, hereby irrevocably constituting and appointing attorney to
  transfer said note on the books of the Company, with full power of
  substitution in the premises.

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  Signature(s) must be
  guaranteed by a financial institution that is a member of the Securities
  Transfer Agents Medallion Program (“STAMP”), the Stock Exchange Medallion
  Program (“SEMP”) or the New York Stock Exchange, Inc. Medallion
  Signature Program(“MSP”).

  
				

 

 D-6

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