Document:

Exhibit 4.8

 

 

 

THE AES
CORPORATION

 

as Issuer

 

AND

 

WELLS
FARGO BANK, N.A.

 

as
Trustee

 

 

 

TWELFTH
SUPPLEMENTAL INDENTURE

 

Dated
as of October 15, 2007

 

TO

 

SENIOR
INDENTURE

 

Dated
as of December 8, 1998

 

 

 

8.00% Senior Notes due 2017

 

 

 

The TWELFTH SUPPLEMENTAL INDENTURE, is dated
as of this 15th day of October, 2007 (the “Twelfth Supplemental Indenture”),
between THE AES CORPORATION, a corporation duly organized and existing under
the laws of the State of Delaware (hereinafter sometimes referred to as the “Company”),
and WELLS FARGO BANK, N.A., a national banking association, as trustee
(hereinafter referred to as the “Trustee”), as successor trustee to BANK
ONE, NATIONAL ASSOCIATION.

 

WHEREAS, the Company entered into a Senior
Indenture dated as of December 8, 1998 between the Company and the Trustee to
provide for the future issuance of its senior debentures, notes or other
evidences of indebtedness (collectively, the “Securities”), said
Securities to be issued from time to time in series as might be determined by
the Company pursuant to the Indenture and, in an unlimited aggregate principal
amount;

 

WHEREAS, the Company and the Trustee have
entered into a First Supplemental Indenture, a Second Supplemental Indenture, a
Third Supplemental Indenture, a Fourth Supplemental Indenture, a Fifth
Supplemental Indenture, a Sixth Supplemental Indenture, a Seventh Supplemental
Indenture, an Eighth Supplemental Indenture, a Ninth Supplemental Indenture, a
Tenth Supplemental Indenture and an Eleventh Supplemental Indenture providing
for the creation and issuance of various series of Securities and/or amendments
to the Indenture (the Indenture, as so amended and supplemented by the forgoing
supplemental indentures and this Twelfth Supplemental Indenture is hereinafter
referred to as, the “Indenture”);

 

WHEREAS, pursuant to the terms of the
Indenture, the Company desires to provide for the establishment of a new series
of its Securities to be known as its 8.00% Senior Notes due 2017, the form and
substance of such Notes and the terms, provisions and conditions thereof to be
set forth as provided in the Indenture and this Twelfth Supplemental Indenture;
and

 

WHEREAS, the Company desires and has
requested the Trustee to join with it in the execution and delivery of this Twelfth
Supplemental Indenture, and all requirements necessary to make this Twelfth
Supplemental Indenture a valid instrument, in accordance with its terms, and to
make the 8.00% Senior Notes due 2017, when executed by the Company and
authenticated and delivered by the Trustee, the valid obligations of the
Company have been satisfied;

 

NOW, THEREFORE, in consideration of the
purchase and acceptance of the Notes by the Holders thereof, and for the
purpose of setting forth, as provided in the Indenture, the form and substance
of the 8.00% Senior Notes due 2017 and the terms, provisions and conditions
thereof, the Company covenants and agrees with the Trustee as follows:

 

2

 

ARTICLE ONE

 

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

SECTION  1.1. TERMS DEFINED IN THE INDENTURE.

 

Each capitalized term used but not defined in
this Twelfth Supplemental Indenture shall have the meaning assigned to such
term in the Indenture.

 

SECTION  1.2. CERTAIN DEFINITIONS.

 

The following definitions are hereby added to
the definitions contained in Section 1.1 of the Indenture, but only with
respect to the 8.00% Senior Notes due 2017 issued in accordance with the
provisions hereof:

 

“Additional Notes” means any notes issued
under this Twelfth Supplemental Indenture in addition to the Initial Notes or
Exchange Notes having the same terms in all respects as the Initial Notes or
Exchange Notes, as the case may be.

 

“Additional Interest” has the meaning
ascribed to such term in the Registration Rights Agreement.

 

“Attributable Debt” means the present
value (discounted at the rate of 8.00% per annum compounded monthly) of the
obligations for rental payments required to be paid during the remaining term
of any lease of more than 12 months.

 

“Board of Directors” means either the
Board of Directors of the Company or (except for the purposes of clause (iii)
of the definition of “Change of Control”) any committee of such Board duly
authorized to act under the Indenture.

 

“Capital Stock” means, with respect to
any Person, any and all shares, interests, participations or other equivalents
(however designated, whether voting or non-voting) of, or interests in (however
designated), the equity of such Person which is outstanding or issued on or
after the date of the Indenture, including, without limitation, all Common
Stock and Preferred Stock and partnership and joint venture interests of such
Person.

 

“Common Stock” means, with respect to
any Person, any and all shares, interests, participations or other equivalents
(however designated, whether voting or non-voting) of common stock of such
Person which is outstanding or issued on or after the date of the Indenture,
including, without limitation, all series and classes of such common stock.

 

“Change of Control” means the
occurrence of one or more of the following events: (i) any sale, lease,
exchange or other transfer (in one transaction or a series of related
transactions) of all, or substantially all, of the assets of the Company
(determined on a consolidated basis) to any Person or group (as that term is
used in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended) of
Persons, (ii) a Person or group (as so defined)

 

3

 

of Persons shall have become the beneficial
owner of more than 50% of the outstanding Voting Stock of the Company, or (iii)
during any one-year period, individuals who at the beginning of such period
constitute the Board of Directors (together with any new director whose
election or nomination was approved by a majority of the directors then in
office who were either directors at the beginning of such period or who were
previously so approved) cease to constitute a majority of the Board of
Directors.

 

“Change of Control Offer” has the
meaning provided in Section 4.1.

 

“Consolidated Net Assets” means the
aggregate amount of assets (less reserves and other deductible items) after
deducting current liabilities, as shown on the consolidated balance sheet of
the Company and its Subsidiaries contained in the latest annual report to the
stockholders of the Company and prepared in accordance with GAAP.

 

“DTC” has the meaning provided in
Section 2.1.

 

“Exchange Notes” means the 8.00%
Senior Notes due 2017 (the terms of which are identical to the Initial Notes
except that the Exchange Notes shall be registered under the Securities Act,
and shall not contain the restrictive legend on the face of the Initial Notes),
to be issued in exchange for the Initial Notes pursuant to the registered
Exchange Offer.

 

“Exchange Offer” means the offer by
the Company to each Holder of the Initial Notes to exchange the aggregate
principal amount of Initial Notes held by such Holder for an equal aggregate
principal amount of Exchange Notes, all in accordance with the terms and
conditions of the Registration Rights Agreement.

 

“Funded Debt” means indebtedness for
borrowed money having a maturity of, or by its terms extendible or renewable
for, a period of more than 12 months after the date of the determination of the
amount thereof.

 

“Global Securities” has the meaning
provided in Section 2.1

 

“Initial Notes” means the 8.00% Senior
Notes due 2017 of the Company issued on October 15, 2007 and delivered under
this Supplemental Indenture.

 

“Issue Date” means October 15, 2007,
the date of the original issuance of the Initial Notes.

 

“Notes” means the Initial Notes, the
Exchange Notes and any Additional Notes issued on or after the Issue Date in
accordance with clause (iii) of Section 2.2(a) treated as a single class of
securities, as amended or supplemented from time to time in accordance with the
terms hereof, that are issued pursuant to this Indenture.

 

“Offshore Global Securities” has the
meaning provided in Section 2.1.

 

“Offshore Physical Securities” has the
meaning provided in Section 2.1.

 

 “Physical
Securities” has the meaning provided in Section 2.1.

 

4

 

“Preferred Stock” means, with respect
to any Person, any and all shares, interests, participations or other
equivalents (however designated, whether voting or non-voting) of preferred or
preference stock of such Person which is outstanding or issued on or after the
date of the Indenture.

 

“Principal Property” means any
building, structure or other facility (together with the land on which it is
erected and fixtures comprising a part thereof) used primarily for
manufacturing, processing, research, warehousing or distribution, owned or
leased by the Company and having a net book value in excess of 2% of Consolidated
Net Assets, other than any such building, structure or other facility or
portion thereof which is a pollution control facility financed by state or local
governmental obligations or which the principal executive officer, president
and principal financial officer of the Company determine in good faith is not
of material importance to the total business conducted or assets owned by the
Company and its Subsidiaries as an entirety.

 

“Private Placement Legend” has the
meaning provided in Section 2.5.

 

“QIB” means any “qualified
institutional buyer” (as defined under the Securities Act).

 

“Registration Default” has the meaning
ascribed to such term in the Registration Rights Agreement.

 

“Registration Rights Agreement” means
the Registration Rights Agreement, dated the Issue Date among the Company and Credit
Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., and Merrill Lynch,
Pierce, Fenner & Smith Incorporated.

 

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

 

“Repurchase Date” shall have the
meaning provided in Section 4.1 hereof.

 

“Restricted Security” has the meaning
assigned to such term in Rule 144(a)(3) under the Securities Act; provided
that the Trustee shall be entitled to request and conclusively rely on an
Opinion of Counsel with respect to whether any Security constitutes a
Restricted Security.

 

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

 

“U.S. Global Securities” has the
meaning provided in Section 2.1.

 

“U.S. Physical Securities” has the
meaning provided in Section 2.1.

 

“Voting Stock” means, with respect to
any Person, Capital Stock of any class or kind ordinarily having the power to
vote for the election of directors of such Person or other Persons performing
similar functions.

 

5

 

ARTICLE TWO

 

THE NOTES

 

SECTION  2.1. FORM AND DATING.

 

(a)       The Notes shall be substantially in the
form of Exhibit A hereto, which is a part of this Twelfth Supplemental
Indenture, with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by the Indenture and this Twelfth
Supplemental 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 the rules of any securities exchange or as may,
consistently herewith, be determined by the Officers of the Company executing
such Notes, as evidenced by their execution of the Notes. The Notes will
initially be issued as Global Securities. The Company initially appoints The
Depository Trust Company (“DTC”) and the Trustee to act as Depositary
and custodian, respectively, with respect to the Notes. The Company initially
appoints the Trustee to act as Paying Agent and Registrar with respect to the
Notes. Notes offered and sold in reliance on Rule 144A shall be issued
initially in the form of one or more permanent global Notes in registered form,
substantially in the form set forth in Exhibit A (the “U.S. Global
Securities”), registered in the name of the nominee of the Depository,
deposited with the Trustee, as custodian for the Depository, duly executed by
the Company and authenticated by the Trustee as hereinafter provided, and shall
bear the legends set forth in Section 2.5. The aggregate principal amount
of the U.S. Global Securities may from time to time be increased or decreased
by adjustments made on the records of the Trustee, as custodian for the
Depository, as hereinafter provided.

 

(b)      Securities issued in exchange for
interests in the U.S. Global Securities pursuant to 2.6 may be issued in the
form of Physical Securities (“U.S. Physical Securities”) and shall bear
the first legend set forth in Section 2.5.

 

(c)       Securities offered and sold in offshore
transactions in reliance on Regulation S shall be issued initially in the form
of one or more global Securities in registered form, substantially in the form
set forth in Exhibit A (the “Offshore Global Securities”), registered in
the name of the nominee of the Depository, deposited with the Trustee, as
custodian for the Depository, duly executed by the Company and authenticated by
the Trustee as hereinafter provided, and shall bear the legends set forth in
Section 2.5. The aggregate principal amount of the Offshore Global Securities
may from time to time be increased or decreased by adjustments made on the
records of the Trustee, as custodian for the Depository, as hereinafter
provided.

 

(d)      Securities issued in exchange for
interests in the Offshore Global Securities may be issued in the form of Physical
Securities in registered form (the “Offshore Physical Securities”).

 

(e)       The Offshore Physical Securities and the
U.S. Physical Securities are sometimes collectively herein referred to as the “Physical
Securities.”  The U.S. Global
Securities and the Offshore Global Securities are sometimes referred to herein
as the “Global Securities.

 

6

 

SECTION  2.2. EXECUTION AND AUTHENTICATION

 

(a)       The Trustee shall authenticate (i)
Initial Notes for original issue on the Issue Date in the aggregate principal
amount of $1.5 billion, (ii) Exchange Notes and (iii) any Additional Notes,
(such Notes to be substantially in the form of Exhibit A) in an unlimited
amount, in each case, upon written orders of the Company in the form of an
Officers’ Certificate. Each such Officers’ Certificate shall specify the amount
of Notes to be authenticated, the date on which the Notes are to be
authenticated, whether the Notes are to be Initial Notes, Exchange Notes or
Additional Notes issued under clause (i), (ii) or (iii), respectively, of the
preceding sentence, and the aggregate principal amount of Notes outstanding on
the date of authentication, and shall further specify the amount of such Notes
to be issued as a Global Security or Physical Securities. Such Notes shall
initially be in the form of one or more Global Securities, which (i) shall
represent, and shall be denominated in an amount equal to the aggregate
principal amount of, the Notes to be issued, (ii) shall be registered in the
name of the Depository for such Global Security or Securities or its nominee
and (iii) shall be held by the Trustee as custodian for the Depository or
pursuant to the Depository’s instruction.

 

(b)      The Notes shall be issuable only in
registered form without coupons in the principal amount of at least $2,000 and integral
multiples of $1,000 thereafter.

 

SECTION  2.3. INTEREST.

 

Interest on the Notes shall be payable in the
amount, on the dates and in the manner provided for in the form of the Note attached
hereto as Exhibit A. Upon the occurrence of a Registration Default under the
Registration Rights Agreement, the Notes shall be entitled to Additional
Interest accruing during the periods described in the Registration Rights
Agreement. All references in the Indenture and the Notes to “interest” shall be
deemed to include any Additional Interest.

 

SECTION  2.4. PLACE OF PAYMENT.

 

(a)           The place of payment for the Notes
shall be the Borough of Manhattan, The City of New York, or Minneapolis,
Minnesota. So long as the Notes are in the form of Registered Global
Securities, the Company agrees that payments of interest on, and any portion of
the Principal of, the Notes shall be made by the Paying Agent, upon receipt
from the Company of immediately available funds, directly to the Depositary (by
Federal funds wire transfer)

 

SECTION  2.5. RESTRICTIVE LEGENDS.

 

(a)       Unless and until an Initial Note is
exchanged for an Exchange Note or sold in connection with an effective
registration statement under the Securities Act pursuant to the Registration
Rights Agreement, the U.S. Global Securities, U.S. Physical Securities and
Offshore Global Securities shall bear the following legend set forth below (the
“Private Placement Legend”) on the face thereof:

 

THIS NOTE (OR
ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR THE LAWS OF ANY STATE OR OTHER

 

7

 

JURISDICTION
AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
EXCEPT IN ACCORDANCE WITH THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF OR
OF A BENEFICIAL INTEREST HEREIN, THE ACQUIRER (1) REPRESENTS THAT (A) IT AND
ANY ACCOUNT FOR WHICH IT IS ACTING IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN
THE MEANING OF RULE 144A UNDER THE SECURITIES ACT) AND THAT IT EXERCISES SOLE
INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT OR (B) IT IS NOT A
UNITED STATES PERSON (WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES
ACT), AND (2) AGREES FOR THE BENEFIT OF THE AES CORPORATION (“AES”) THAT IT
WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THIS NOTE OR ANY BENEFICIAL
INTEREST HEREIN, EXCEPT IN ACCORDANCE WITH THE SECURITIES
ACT AND ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND
ONLY (A) TO AES, (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BECOME
EFFECTIVE UNDER THE SECURITIES ACT, (C) TO A QUALIFIED INSTITUTIONAL BUYER IN
COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (D) IN AN OFFSHORE
TRANSACTION IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES
ACT, (E) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER
THE SECURITIES ACT OR ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. PRIOR TO THE REGISTRATION OF ANY TRANSFER
IN ACCORDANCE WITH (2)(E) ABOVE, AES RESERVES THE RIGHT TO REQUIRE THE DELIVERY
OF SUCH LEGAL OPINIONS, CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE
REQUIRED IN ORDER TO DETERMINE THAT THE PROPOSED TRANSFER IS BEING MADE IN
COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. NO
REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY RULE 144 EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

 

Each
Global Security shall also bear the following legend on the face thereof:

 

UNLESS
AND UNTIL THIS NOTE IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN
DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITORY TO A NOMINEE OF THE DEPOSITORY, OR BY ANY SUCH NOMINEE OF THE
DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE
DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITORY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO THE COMPANY OR THEIR AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR

 

8

 

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

 

TRANSFERS
OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN
PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN
SECTION 2.6 OF THE SUPPLEMENTAL INDENTURE GOVERNING THIS NOTE.

 

SECTION  2.6. SPECIAL TRANSFER PROVISIONS.

 

(a)       The following provisions shall apply with
respect to the registration of any proposed transfer of a Note constituting a
Restricted Security to any institutional accredited investor (as defined in
Rule 501(a)(1), (2), (3) or (7) under the Securities Act) (an “Accredited
Investor” or an “Institutional Accredited Investor”) which is not a
QIB (excluding transfers to Non-U.S. Persons, which shall be governed by clause
(c)):

 

(i)    The
Registrar shall register the transfer in an aggregate principal amount of at
least $250,000 of any Note constituting a Restricted Security, whether or not
such Security bears the Private Placement Legend, if the proposed transferee
has delivered to the Registrar a certificate substantially in the form Exhibit
B hereto, and the proposed transferee has delivered to the Registrar and the Company
an opinion of counsel acceptable to the Company that such transfer is in
compliance with the Securities Act and such other certifications, legal
opinions or other information that the Trustee may reasonably request in order
to confirm that such transaction is being made pursuant to an exemption form or
in a transaction not subject to the registration requirements of the Securities
Act; and

 

(ii)   If
the proposed transferor is a member of, or participant in, the Depository (an “Agent
Member”) holding a beneficial interest in a U.S. Global Security, whether or
not such Note bears a Private Placement Legend, upon receipt by the Registrar
of (x) the certificate and opinion, if any, required by paragraph (i) above and
(y) instructions given in accordance with the Depository’s and the Registrar’s
procedures, whereupon (a) the Registrar shall reflect on its books and records
the date and a decrease in the principal amount of the applicable U.S. Global
Security in an amount equal to the principal amount of the beneficial interest
in such U.S. Global Security to be transferred, and an increase in the
applicable Global Security to which the beneficial interest is to be transferred
or shall authenticate and deliver one or more U.S. Physical Securities of like
tenor and amount.

 

9

 

(b)      The following provisions shall apply with
respect to the registration of any proposed transfer of a Note to a QIB
(excluding transfers to Non U.S. Persons, which shall be governed by clause
(c)):

 

(i)    if
the Note to be transferred consists of (x) either Offshore Physical Securities
prior to the removal of the Private Placement Legend or U.S. Physical Securities,
the Registrar shall register the transfer if such transfer is being made by a
proposed transferor who has checked the box provided for on the form of Note stating,
or has otherwise advised the Company and the Registrar in writing, that the
sale has been made in compliance with the provisions of Rule 144A to a
transferee who has signed the certification provided for on the form of Note stating,
or has otherwise advised the Company and the Registrar in writing that it is
purchasing the Note for its own account or an account with respect to which it
exercises sole investment discretion and that it and any such account is a QIB
within the meaning of Rule 144A, and is aware that the sale to it is being made
in reliance on Rule 144A and acknowledges that it has received such information
regarding the Company as it has requested pursuant to Rule 144A or has
determined not to request such information and that it is aware that the
transferor is relying upon its foregoing representations in order to claim the
exemption from registration provided by Rule 144A or (y) an interest in the
U.S. Global Securities, the transfer of such interest may be effected only
through the book entry system maintained by the Depositary; and

 

(ii)   if
the proposed transferee is an Agent Member, and the Notes to be transferred
consist of U.S. Physical Securities which after transfer are to be evidenced by
an interest in a U.S. Global Security, upon receipt by the Registrar of
instructions given in accordance with the Depository’s and the Registrar’s
procedures, the Registrar shall reflect on its books and records the date and
an increase in the principal amount of the applicable U.S. Global Security in
an amount equal to the principal amount of the U.S. Physical Securities to be
transferred, and the Trustee shall cancel the U.S. Physical Securities so
transferred.

 

(c)       The following provisions shall apply with
respect to any transfer of a Note to a Non-U.S. Person:

 

(i)    prior
to the 41st day after the date on which such Note is originally issued, the
Registrar shall register any proposed transfer of a Note to a Non-U.S. Person
upon receipt of a certificate substantially in the form of Exhibit C hereto
from the proposed transferor and the Registrar shall register any proposed
transfer to any Non-U.S. Person if the Note to be transferred is a U.S.
Physical Security or an interest in U.S. Global Securities, upon receipt of a
certificate substantially in the form of Exhibit C hereto from the proposed
transferor;

 

(ii)   on
or after the 41st day after the date on which such Note is originally issued,
the Registrar shall register any proposed transfer of any Offshore Physical
Security or Offshore Global Security without requiring any certification; and

 

10

 

(iii)  (a)
if the proposed transferor is an Agent Member holding a beneficial interest in
the U.S. Global Securities, upon receipt by the Registrar of (x) the documents,
if any, required by paragraph (i) or (ii) and (y) instructions in accordance with
the Depositary’s and the Registrar’s procedures, the Registrar shall reflect on
its books and records the date and a decrease in the principal amount of the
U.S. Global Securities in an amount equal to the principal amount of the
beneficial interest in the U.S. Global Securities to be transferred, and (b) if
the proposed transferee is an Agent Member, upon receipt by the Registrar of
instructions given in accordance with the Depository’s and the Registrar’s
procedures, the Registrar shall reflect on its books and records the date and
an increase in the principal amount of the Offshore Global Securities in an
amount equal to the principal amount of the U.S. Physical Securities or the
U.S. Global Securities, as the case may be, to be transferred, and the Trustee
shall cancel the U.S. Physical Security, if any, so transferred or decrease the
amount of the U.S. Global Security.

 

(d)      Upon the registration of transfer,
exchange or replacement of Notes not bearing the Private Placement Legend, the
Registrar shall deliver Notes that do not bear the Private Placement Legend. Upon
the registration of transfer, exchange or replacement of Notes bearing the
Private Placement Legend, the Registrar shall deliver only Notes that bear the
Private Placement Legend unless (i) the transferee certifies that it is not an
Affiliate of the Company and the requested transfer is after the second
anniversary of the later of (a) the date on which such Notes are originally
issued and (b) the last date on which the Company or an Affiliate of the Company
was the owner of such Notes (or any predecessor Securities) or such shorter
period of time as permitted by Rule 144(k) under the Securities Act or any
successor provision thereunder or (ii) the circumstance contemplated by
paragraph (c)(ii) of this Section 2.6 exists or (iii) there is delivered to the
Registrar an Opinion of Counsel reasonably satisfactory to the Company and the
Trustee to the effect that neither such legend nor the related restrictions on
transfer are required in order to maintain compliance with the provisions of
the Securities Act.

 

(e)       By its acceptance of any Note bearing the
Private Placement Legend, each Holder of such Note acknowledges the
restrictions on transfer of such Note set forth in this Indenture and in the
Private Placement Legend and agrees that it shall transfer such Note only as
provided in this Indenture. The Registrar shall retain copies of all letters,
notices and other written communications received pursuant to this Section 2.6
in accordance with its customary procedures. The Company, at its own expense, shall
have the right to inspect and make copies of all such letters, notices or other
written communications at any reasonable time upon the giving of reasonable
written notice to the Registrar.

 

ARTICLE THREE

 

OPTIONAL REDEMPTION OF 

THE NOTES

 

SECTION  3.1. OPTIONAL REDEMPTION.

 

(a)       The Notes may be redeemed at the option
of the Company, as a whole or from time to time in part, at the times and at
the Redemption Price specified in the form of the Note attached hereto as
Exhibit A.

 

11

 

ARTICLE FOUR

 

REPURCHASE OF  NOTES

UPON CHANGE OF CONTROL

 

SECTION  4.1. REPURCHASE OF  NOTES UPON A CHANGE OF CONTROL.

 

(a)       Upon a Change of Control, each holder of
the Notes shall have the right to require that the Company repurchase such
holder’s Notes at a repurchase price in cash equal to 101% of the principal
amount thereof plus accrued and unpaid interest, if any, to the date of
repurchase.

 

(b)      Within 30 days following any Change of
Control, the Company shall mail a notice to each Holder of the Notes with a
copy to the Trustee stating

 

(i)   that a Change of Control has
occurred and that such Holder has the right to require the Company to
repurchase such Holder’s Notes at a repurchase price in cash equal to 101% of
the principal amount thereof plus accrued and unpaid interest, if any, to the
date of repurchase (the “Change of Control Offer”),

 

(ii)   the circumstances and relevant
facts regarding such Change of Control (including information with respect to
pro forma historical income, cash flow and capitalization after giving effect
to such Change of Control),

 

(iii)   the repurchase date (which shall
be not earlier than 30 days or later than 60 days from the date such notice is
mailed) (the “Repurchase Date”),

 

(iv)   that any Notes not tendered shall
continue to accrue interest,

 

(v)   that any Notes accepted for payment
pursuant to the Change of Control Offer shall cease to accrue interest after
the Repurchase Date,

 

(vi)   that Holders electing to have a Note
purchased pursuant to a Change of Control Offer will be required to surrender
the Note, with the form entitled “Option of Holder to Elect Purchase” on the
reverse of the Notes completed, to the paying agent at the address specified in
the notice prior to the close of business on the Repurchase Date,

 

(vii)   that Holders will be entitled to
withdraw their election if the paying agent receives, not later than the close
of business on the third Business Day (or such shorter periods as may be
required by applicable law) preceding the Repurchase Date, a telegram, telex,
facsimile transmission or letter setting forth the name of the Holder, the
principal amount of Notes the Holder delivered for purchase, and a statement
that such Holder is withdrawing his election to have such  Notes purchased, and

 

(viii)   that Holders which elect to have
their Notes purchased only in part will be issued new Notes of the same series
in a principal amount equal to the unpurchased portion of the Notes
surrendered.

 

12

 

(c)       On the Repurchase Date, the Company shall
(i) accept for payment Notes or portions thereof tendered pursuant to the
Change of Control Offer; (ii) deposit with the Trustee money sufficient to pay
the purchase price of all Notes or portions thereof so tendered and (iii) deliver
or cause to be delivered to the Trustee Notes so accepted together with an
Officers’ Certificate identifying the Notes or portions thereof tendered to the
Company.

 

(d)      The Trustee shall promptly mail to the
Holders of the Notes so accepted payment in an amount equal to the purchase
price, and promptly authenticate and mail to such Holders a new Note of the
same series in a principal amount equal to any unpurchased portion of the Notes
surrendered. The Company shall publicly announce the results of the Change of
Control Offer on or as soon as practicable after the Repurchase Date.

 

(e)       The Company shall comply with all
applicable tender offer rules, including without limitation Rule 14e-1 under
the Exchange Act, in connection with a Change of Control Offer.

 

13

 

ARTICLE FIVE

 

ADDITIONAL COVENANTS APPLICABLE TO THE  NOTES

 

SECTION  5.1. RESTRICTIONS ON SECURED DEBT.

 

(a)       If the Company shall incur, issue, assume
or guarantee any indebtedness for borrowed money represented by notes, bonds,
debentures or other similar evidences of indebtedness, secured by a mortgage,
pledge or other lien on any Principal Property or any capital stock or
indebtedness held directly by the Company of any Subsidiary of the Company, the
Company shall secure the Notes equally and ratably with (or prior to) such
indebtedness, so long as such indebtedness shall be so secured, unless after
giving effect thereto the aggregate amount of all such indebtedness so secured,
together with all Attributable Debt in respect of sale and leaseback
transactions involving Principal Properties, would not exceed 15% of the
Consolidated Net Assets of the Company.

 

(b)      The foregoing restriction shall not apply
to, and there shall be excluded in computing secured indebtedness for the
purpose of such restriction, indebtedness secured by (a) property of any
Subsidiary of the Company, (b) liens on property of, or on any shares of stock
or debt of, any corporation existing at the time such corporation becomes a
Subsidiary, (c) liens in favor of the Company or any Subsidiary, (d) liens in
favor of U.S. or foreign governmental bodies to secure partial, progress,
advance or other payments, (e) liens on property, shares of stock or debt
existing at the time of acquisition thereof (including acquisition through
merger or consolidation), purchase money mortgages and construction cost
mortgages existing at or incurred within 180 days of the time of acquisition
thereof, (f) liens existing on the first date on which any Note is
authenticated by the Trustee, (g) liens under one or more credit facilities for
indebtedness in an aggregate principal amount not to exceed $900,000,000 at any
time outstanding, (h) liens incurred in connection with pollution control,
industrial revenue or similar financings, and (i) any extension, renewal or
replacement of any debt secured by any liens referred to in the foregoing
clauses (a) through (h), inclusive.

 

SECTION  5.2. RESTRICTIONS ON SALES AND LEASEBACKS.

 

(a)       The Company shall not enter into any sale
and leaseback transaction involving any Principal Property, the acquisition or
completion of construction and commencement of full operation of which has
occurred more than 180 days prior thereto, unless (a) the Company could incur a
lien on such property under the restrictions described in Section 5.1 hereof in
an amount equal to the Attributable Debt with respect to the sale and leaseback
transaction without equally and ratably securing the Notes or (b) the Company,
within 180 days after the sale or transfer by the Company, applies to the
retirement of its Funded Debt an amount equal to the greater of (i) the net
proceeds of the sale of the Principal Property sold and leased pursuant to such
arrangement or (ii) the fair market value of the Principal Property so sold and
leased as determined by the board of directors of the Company; provided
that the amount to be applied to the retirement of Funded Debt of the Company
shall be reduced by (A) the principal amount of any Notes delivered within 180
days after such sale or transfer to the Trustee for retirement and

 

14

 

cancellation, and (B) the principal amount of
Funded Debt, other than Notes, voluntarily retired by the Company within 180
days after such sale or transfer; provided further that no retirement referred
to in this clause (b) may be effected by payment at maturity or pursuant to any
mandatory sinking fund payment or any mandatory prepayment provision.

 

ARTICLE SIX

 

ADDITIONAL EVENTS OF DEFAULT APPLICABLE

 

TO THE  NOTE

 

SECTION  6.1. ADDITIONAL EVENTS OF DEFAULT.

 

(a)       Pursuant to Section 6.1 (f) of the
Indenture, an “Event of Default” shall be deemed to occur with respect to the Notes
if an event of default, as defined in any indenture or instrument evidencing or
under which the Company has as of the date of this Twelfth Supplemental
Indenture or shall thereafter have outstanding any indebtedness, shall happen
and be continuing and either (i) such default results from the failure to pay
the principal of such indebtedness in excess  of
$50 million at final maturity of such indebtedness or (ii) as a result of such
default the maturity of such indebtedness shall have been accelerated so that
the same shall be or become due and payable prior to the date on which the same
would otherwise have become due and payable, and such acceleration shall not be
rescinded or annulled within 60 days and the principal amount of such
indebtedness, together with the principal amount of any other indebtedness of the
Company in default, or the maturity of which has been accelerated, aggregates
$50 million or more; provided that the Trustee shall not be charged with
knowledge of any such default unless written notice thereof shall have been
given to the Trustee by the Company, by the holder or an agent of the holder of
any such indebtedness, by the trustee then acting under any indenture or other
instrument under which such default shall have occurred, or by the holders of
not less than 25% in the aggregate principal amount of the Notes at the time
outstanding; and provided  further that if such default shall be
remedied or cured by the Company or waived by the holder of such indebtedness,
then the Event of Default described under this Twelfth Supplemental Indenture
shall be deemed likewise to have been remedied, cured or waived without further
action on the part of the Trustee, any Holder of Notes or any other person.

 

15

 

ARTICLE SEVEN

 

MISCELLANEOUS PROVISIONS

 

SECTION  7.1. RATIFICATION.

 

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

 

SECTION  7.2. COUNTERPARTS.

 

(a)       This Twelfth Supplemental 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.

 

16

 

IN WITNESS WHEREOF, the parties hereto have
caused this Twelfth Supplemental Indenture to be duly executed and attested, on
the date or dates indicated in the acknowledgments and as of the day and year
first above written.

 

	
   

  	
  THE AES
  CORPORATION, as

  
	
   

  	
  the Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ VICTORIA
  HARKER

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Victoria
  Harker

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  
	
   

  	
   

  	
   

  	
  Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ BRIAN
  MILLER

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Brian Miller

  	
   

  
	
   

  	
  Title:

  	
  (VP) General
  Counsel and Secretary

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO
  BANK, N.A.,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JEFFERY
  ROSE

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jeffery Rose

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ TIMOTHY
  P. MOWDY

  	
   

  	
   

  
	
   

  	
  Name: Timothy
  P. Mowdy

  	
   

  
	
   

  	
  Title:   Asst. Secretary

  	
   

  
								

 

17

 

Exhibit A

 

[FORM OF NOTE]*

 

[FACE OF NOTE]

 

THE AES CORPORATION.

 

8.00% Senior Note due 2017

 

	
  CUSIP No.

  	
   

  	
   

  
	
  ISIN No.

  	
   

  	
   

  
	
  No.

  	
  Principal Amount

  	
  $

  

 

 

THE
AES CORPORATION, a Delaware corporation (the “Company”), for value           
received promises to pay to or registered assigns, the principal sum of Dollars
          ($                )
on October 15, 2017.

 

Interest
Payment Dates: April 15 and October 15; commencing April 15, 2008.

 

Record
Dates:  The fifteenth calendar day prior
to each Interest Payment Date.

 

Reference
is made to the further provisions of this Note contained herein, which shall
for all purposes have the same effect as if set forth at this place

 

 

* Add Private Placement Legend
to Initial Note and, if applicable, Global Security Legend.

 

A-1

 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  
	
   

  
	
  Dated:

  

 

A-2

 

 

Certificate of
Authentication

 

This is one of
the 8.00% Senior Notes due 2017 referred to in the within-mentioned Indenture.

 

	
   

  	
  Wells Fargo
  Bank, N.A.,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

A-3

 

[REVERSE OF FORM OF NOTE]

 

THE AES CORPORATION

 

8.00% SENIOR NOTE DUE 2017

 

1.             Interest. THE AES
CORPORATION, a Delaware corporation (the “Company,” which definition
shall include any successor thereto in accordance with the Indenture (as
defined below), promises to pay, until the principal hereof is paid or made
available for payment, interest on the principal amount set forth on the
reverse side hereof at a rate of 8.00% per   annum
plus any Additional Interest payable pursuant to the Registration Rights
Agreement. All references in this Note to “interest” shall mean and include any
Additional Interest. Interest on the Notes will accrue from and including the
most recent date to which interest has been paid or, if no interest has been
paid, from October 15, 2007 through but excluding the date on which interest is
paid. Interest shall be payable in arrears on October 15 and April 15 of each
year (each an “Interest Payment Date”), commencing April 15, 2008. Interest
will be computed on the basis of a 360-day year of twelve 30-day months. In the
event that any date on which interest is payable on the Notes is not a Business
Day, then payment of the interest payable on such date will be made on the next
succeeding day which is a Business Day (and without any interest or other
payment in respect of any such delay), except that, if such Business Day is in
the next succeeding calendar year, such payment shall be made on the
immediately preceding Business Day, in each case with the same force and effect
as if made on such date.

 

2.             Method of Payment. The
Company will pay interest on the Notes (except defaulted interest) to the
Persons who are registered Holders of Notes at the close of business on the
fifteenth calendar day prior to each Interest Payment Date (each, a “Regular
Record Date”). Holders must surrender Notes to a Paying Agent to collect
principal payments. The Company will pay principal and interest in money of the
United States that at the time of payment is legal tender for payment of public
and private debts. At the Company’s option, interest may be paid by check
mailed to the registered address of the Holder of this Note.

 

3.             Paying Agent and Registrar. Initially,
Wells Fargo Bank, N.A. (the “Trustee”) will act as Paying Agent and
Registrar. The Company may change any Paying Agent, Registrar or co-Registrar
without notice.

 

4.             Indenture. The Company
issued the Notes under an Indenture dated as of December 8, 1998 between the
Company and the Trustee as supplemented by the Ninth Supplemental Indenture
dated as of April 3, 2003 and the Twelfth Supplemental Indenture dated as of October
15, 2007 between the Company and the Trustee (said Indenture, as so
supplemented, the “Indenture”). This Note is one of an issue of
Securities of the Company issued under the Indenture. The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as
amended from time to time. The Notes are subject to all such terms, and Holders
of the Notes are referred to the Indenture and such Act for a statement of them.
Capitalized terms used herein and not otherwise defined have the meanings set
forth in the

 

A-4

 

Indenture. The Notes are general unsecured and unsubordinated
obligations of the Company ranking pari passu with all of the Company’s
unsecured and unsubordinated obligations. The Company may, subject to the terms
of the Indenture and applicable law, issue Additional Notes under the Twelfth
Supplemental Indenture. The Notes issued on October 15, 2007 and any additional
Notes subsequently issued shall be treated as a single class for all purposes
of the Twelfth Supplemental Indenture. The Indenture limits the ability of the
Company to incur certain secured indebtedness and to enter into certain sale
and leaseback transactions.

 

5.             Optional Redemption. The Notes
are subject to redemption upon not less than 30 nor more than 60 days notice
mailed to each holder of  Notes to be
redeemed at its address appearing in the Security Register, at any time prior
to maturity as a whole or in part, at the election of the Company at a price
(the “Redemption Price”) equal to the sum of (i) 100% of the principal
amount thereof plus accrued interest to the redemption date plus (ii) the
Make-Whole Amount, if any.

 

“Make-Whole Amount” means the excess, if any, of (i) the
aggregate present value as of the date of such redemption of each dollar of
principal being redeemed and the amount of interest (exclusive of interest
accrued to the redemption date) that would have been payable in respect of such
dollar if such prepayment had not been made, determined by discounting, on a
semiannual basis, such principal and interest at the Reinvestment Rate
(determined on the Business Day preceding the date of such redemption) from the
respective dates on which such principal and interest would have been payable
if such payment had not been made, over (ii) the aggregate principal amount of
the Notes being redeemed.

 

“Reinvestment
Rate” means 0.50% (one-half of one percent) plus the arithmetic mean of the
yields under the respective headings “This Week” and “Last Week” published in
the Statistical Release under the caption “Treasury Constant Maturities” for
the maturity (rounded to the nearest month) corresponding to the maturity of
the principal being prepaid. If no maturity exactly corresponds to such
maturity, yields for the two published maturities most closely corresponding to
such maturity shall be calculated pursuant to the immediately preceding
sentence and the Reinvestment Rate shall be interpolated or extrapolated from
such yields on a straight-line basis, rounding in each of such relevant periods
to the nearest month. For the purpose of calculating the Reinvestment Rate, the
most recent Statistical Release published prior to the date of determination of
the Make-Whole Amount shall be used.

 

“Statistical
Release” means the statistical release designated “H.15(519)” or any
successor publication which is published weekly by the Federal Reserve System
and which establishes yields on actively traded U.S. government securities
adjusted to constant maturities or, if such statistical release is not
published at the time of any determination under the Indenture, then such other
reasonably comparable index which shall be designated by the Company.

 

6.             Change of Control Offer. Upon
the occurrence of a Change of Control, the Company shall be required, as and to
the extent set forth in the Indenture, to offer to purchase all of the
outstanding Notes at a purchase price equal to 101% of the principal amount
thereof, plus

 

A-5

 

accrued and unpaid interest, if any, thereon to the date of repurchase
(subject to the right of the Holders of record on the relevant date to receive
interest due on the relevant interest payment date).

 

7.             Sinking Fund. No sinking
fund is provided for the Notes.

 

8.             Denominations, Transfer,
Exchange. The Notes are in registered form without coupons in denominations
of $2,000 and integral multiples of $1,000 thereafter. A Holder may transfer or
exchange Notes in accordance with the Indenture. The Registrar may require a
Holder, among other things, to furnish appropriate endorsements and transfer documents
and to pay to it any taxes and fees required by law or permitted by the
Indenture. The Registrar need not transfer or exchange any Notes or portion of
a Note selected for redemption, or transfer or exchange any Notes for a period
of 15 days before selection of such Notes to be redeemed.

 

9.             Persons Deemed Owners. The
registered holder of a Note may be treated as the owner of it for all purposes.

 

10.           Unclaimed Money. If money for
the payment of principal or interest remains unclaimed for two years, the
Trustee or Paying Agent will pay the money back to the Company at its written
request. After that, Holders entitled to the money must look to the Company for
payment as general creditors unless an “abandoned property” law designates
another Person.

 

11.           Amendment, Supplement, Waiver.
The Company and the Trustee may, without the consent of the holders of any
outstanding Notes, amend, waive or supplement the Indenture or the Notes for
certain specified purposes, including, among other things, curing ambiguities,
defects or inconsistencies, maintaining the qualification of the Indenture
under the Trust Indenture Act of 1939 or making any other change that does not
adversely affect the rights of any Holder in any material respect. Other
amendments and modifications of the Indenture or the Notes may be made by the
Company and the Trustee with the consent of the Holders of not less than a
majority of the aggregate principal amount of the outstanding Securities of all
series affected, subject to certain exceptions requiring the consent of the
Holders of the particular Securities.

 

12.           Successor Corporation. When a
successor corporation assumes all the obligations of its predecessor under the Notes
and the Indenture and the transaction complies with the terms of Article 5 of
the Indenture, the predecessor corporation, subject to certain exceptions, will
be released from those obligations.

 

13.           Defaults and Remedies. Events
of Default are set forth in the Indenture. Subject to certain limitations in
the Indenture, if an Event of Default (other than an Event of Default specified
in Section 6.1(d) or (e) of the Indenture with respect to the Company) occurs
and is continuing, then the holders of not less than 25% in aggregate principal
amount of the outstanding Notes may, or the Trustee may, declare the principal
of, plus accrued interest, if any, to be due and payable immediately. If an
Event of Default specified in Section 6.1(d) or (e) of the Indenture with
respect to the Company occurs and is continuing, the principal of and accrued
interest on all of the Notes shall ipso  facto become and be
immediately due and payable without

 

A-6

 

any declaration or other act on the part of the Trustee or any Holder. Holders
of the Notes may not enforce the Indenture or the Notes except as provided in
the Indenture. The Trustee may require indemnity reasonably satisfactory to it
before it enforces the Indenture or the Notes. Subject to certain limitations,
Holders of a majority in principal amount of the then outstanding  Securities of all series issued under the
Indenture that are affected may direct the Trustee in its exercise of any trust
or power. The Trustee may withhold from Holders of the Notes notice of any
continuing default (except a default in payment of principal or interest) if it
determines in good faith that withholding notice is in their interests. The
Company must furnish an annual compliance certificate to the Trustee.

 

14.           Trustee Dealing with Company. The
Trustee, in its individual or any other capacity, may make loans to, accept
deposits from, and perform services for the Company or its Affiliates, and may
otherwise deal with the Company or its Affiliates, as if it were not Trustee.

 

15.           No Recourse Against Others. A director,
officer, employee, stockholder or beneficiary, as such, of the Company shall
not have any liability for any obligations of the Company under the Notes or
the Indenture or for any claim based on, in respect of or by reason of, such
obligations or their creation. Each Holder of the Notes by accepting a Note
waives and releases all such liability. The waiver and release are part of the
consideration for the issue of the Notes.

 

16.           Defeasance. The Indenture
contains provisions (which provisions apply to this Note) for defeasance at any
time of (a) the entire indebtedness of the Company in respect of this Note and
(b) certain restrictive covenants and Defaults and Events of Default, in each
case upon compliance by the Company with certain conditions set forth therein.

 

17.           Authentication. This Note
shall not be valid until the Trustee signs the certificate of authentication on
the other side of this Note.

 

18.           Abbreviations. Customary
abbreviations may be used in the name of a Holder of Notes or an assignee, such
as:  TEN COM (= tenants in common),
TENANT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act).

 

19.           GOVERNING LAW. THE INDENTURE
AND THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

 

The Company will furnish to any Holder of Notes
upon written request and without charge a copy of the Indenture. Requests may
be made to:

 

THE AES
CORPORATION

4300 Wilson
Boulevard

Arlington,
Virginia 22203

Telephone:  (703) 522-1315

Telecopy:  (703) 558-4879

 

Attention:  Legal Department

 

A-7

 

ASSIGNMENT FORM

 

If you the
holder want to assign this Note, fill in the form below and have your signature
guaranteed:

 

	
  I or we assign and transfer this Note to

  	
   

  
	
   

  
	
  (Insert assignee’s social security or tax ID number)

  	
   

  
	
   

  	
   

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

  	
   

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

  
	
   

  	
   

  
				

 

	
  Date:

  	
   

  	
   

  	
  Your
  signature:

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  
							

 

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

 

A-8

 

OPTION OF HOLDER TO ELECT TO PURCHASE

 

	
  Wells Fargo Bank, N.A.

  	
  [Date]

  
	
  Corporate Trust Services

  	
   

  
	
  625 Marquette Avenue

  	
   

  
	
  MAC N9311-110

  	
   

  
	
  Minneapolis, MN. 55479

  	
   

  
	
  Attn: AES Corporation Administrator

  	
   

  

 

 

Attention:

 

 

	
  Re:

  	
  The AES Corporation

  
	
   

  	
  8.00% Senior Notes due 2017 (the “Notes”)

  

 

The
undersigned hereby elects to have [all] [a portion of] its Notes purchased by
the Company pursuant to Section 4.1 of the Indenture.

 

If the
undersigned elects to have only part of its Notes purchased by the Company
pursuant to Section 4.1 of the Indenture, state the principal amount (in
multiples of $1,000):

 

	
   

  	
   

  	
   

  	
  $   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  	
   

  
	
   

  	
   

  	
  (Sign exactly as name appears on the other side
  of this Security)

  	
   

  

 

	
   

  	
   

  	
   

  
	
  Signature Guarantee:

  	
  Participant in a recognized Signature Guarantee Medallion Program (or
  other signature guarantor program reasonably acceptable to the Trustee)

  	
   

  

 

B-1

 

[Check One]

 

	
  (1)

  	
  —

  	
  to the Company; or

  
	
   

  	
   

  	
   

  
	
  (2)

  	
  —

  	
  pursuant to and in compliance with Rule 144A
  under the Securities Act; or

  
	
   

  	
   

  	
   

  
	
  (3)

  	
  —

  	
  To an institutional “accredited investor”
  (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act) that
  has furnished to the Trustee a signed letter containing certain
  representations and agreements (the form of which letter can be obtained from
  the Trustee); or

  
	
   

  	
   

  	
   

  
	
  (4)

  	
  —

  	
  outside the United States to a Person that
  is not a U.S. Person in compliance with Rule 904 of Regulation S under the
  Securities Act; or

  
	
   

  	
   

  	
   

  
	
  (5)

  	
  —

  	
  pursuant to the exemption from registration
  provided by Rule 144 under the Securities Act; or

  
	
   

  	
   

  	
   

  
	
  (6)

  	
  —

  	
  pursuant to an effective registration
  statement under the Securities Act; or

  
	
   

  	
   

  	
   

  
	
  (7)

  	
  —

  	
  pursuant to another available exemption
  from the registration requirements of the Securities Act;

  

 

and unless the box below is checked, the undersigned confirms that such
Security is not being transferred to an “affiliate” of the Company as
defined in Rule 144 under the Securities Act of 1933, as amended (an “Affiliate”):

 

o            The transferee is an Affiliate of
the Company.

 

Unless
one of the items is checked, the Trustee shall refuse to register any of the Notes
evidenced by this certificate in the name of any person other than the
registered Holder thereof; provided that if box (3), (4), (5) or (7) is
checked, the Company or the Trustee may require, prior to registering any such
transfer of the Notes, in its sole discretion, such legal opinions,
certifications (including an investment letter in the case of box (3) or (4))
and other information as the Trustee or the Company have reasonably requested
to confirm that such transfer is being made pursuant to an exemption from, or
in a transaction not subject to, the registration requirements of the
Securities Act.

 

B-2

 

If none of the foregoing boxes is checked, the Trustee or Registrar
shall not be obligated to register this Note in the name of any person other
than the Holder hereof unless and until the conditions to any such transfer of
registration set forth herein and in Section 2.6 of the Indenture shall have
been satisfied.

 

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  	
   

  
	
   

  	
   

  	
  (Sign exactly as name appears on the other
  side of this Security)

  	
   

  

 

	
  Signature Guarantee:

  	
   

  	
   

  

 

TO BE COMPLETED BY PURCHASER IF
(2) ABOVE IS CHECKED

 

 

The
undersigned represents and warrants that it is purchasing this Note for its own
account or an account with respect to which it exercises sole investment
discretion and that it and any such account is a “qualified institutional
buyer” within the meaning of Rule 144A under the Securities Act and is
aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the
undersigned has requested pursuant to Rule 144A or has determined not to
request such information and that it is aware that the transferor is relying
upon the undersigned’s foregoing representations in order to claim the
exemption from registration provided by Rule 144A.

 

	
  Dated:

  	
   

  	
   

  

 

B-3

 

Exhibit B

 

Form of Certificate to be

Delivered in Connection with

Transfers to Non-QIB Accredited Investors

 

 

[Date]

 

 

Attention:

 

Re:          The AES Corporation

8.00% Senior Notes due 2017 (the “Notes”)

 

 

Ladies and Gentlemen:

 

In
connection with our proposed purchase of The AES Corporation (the “Company”),
we confirm that:

 

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

 

2.             We understand that the offer and
sale of the Notes have not been registered under the Securities Act, and that
the Notes may not be offered or sold except as permitted in the following
sentence. We agree, on our own behalf and on behalf of any accounts for which
we are acting as hereinafter stated, that if we should sell or otherwise transfer
any Notes prior to the date which is two years after the original issuance of
the Notes, we will do so only (i) to the Company or any of their
subsidiaries, (ii) inside the United States in accordance with
Rule 144A under the Securities Act to a “qualified institutional buyer”
(as defined in Rule 144A under the Securities Act), (iii) inside the
United States to an institutional “accredited investor” (as defined
below) that, prior to such transfer, furnishes (or has furnished on its behalf
by a U.S. broker-dealer) to the Trustee (as defined in the Indenture relating
to the Notes), a signed letter containing certain representations and
agreements relating to the restrictions on transfer of the Notes and, if such
transfer is in respect of any aggregate principal amount of Notes of less than
$250,000, also furnishes an opinion of counsel acceptable to the Company that
such transfer complies with the Securities Act, (iv) outside the United
States in accordance with Rule 904 of Regulation S under the
Securities Act, (v) pursuant to the exemption from registration provided

 

B-1

 

by
Rule 144 under the Securities Act (if available), or (vi) pursuant to
an effective registration statement under the Securities Act, and we further
agree to provide to any person purchasing any of the Notes from us a notice
advising such purchaser that resales of the Notes are restricted as stated
herein.

 

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

 

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

 

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

 

6.             The principal amount of the Notes
to which this Certificate relates is $              
..

 

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

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

B-2

 

Exhibit C

 

Form of Certificate to Be 

Delivered in Connection with 

Transfers Pursuant to Regulation S

 

	
  Wells Fargo Bank, N.A.

  	
  [Date]

  
	
  Corporate Trust Services

  	
   

  
	
  625 Marquette Avenue

  	
   

  
	
  MAC N9311-110

  	
   

  
	
  Minneapolis, MN. 55479

  	
   

  
	
  Attn: AES Corporation Administrator

  	
   

  

 

Attention:

 

 

Re:          The AES Corporation

8.00% Senior Notes due 2017 (the “Notes”)

 

In
connection with our proposed sale of $                
aggregate principal amount of the Notes, we confirm that such sale has been
effected pursuant to and in accordance with Regulation S under the U.S.
Securities Act of 1933, as amended (the “Securities Act”), and,
accordingly, we represent that:

 

1.             the
offer of the Notes was not made to a person in the United States;

 

2.             either
(a) at the time the buy offer was originated, the transferee was outside the
United States or we and any person acting on our behalf reasonably believed
that the transferee was outside the United States, or (b) the transaction was
executed in, on or through the facilities of a designated off-shore securities
market and neither we nor any person acting on our behalf knows that the
transaction has been pre-arranged with a buyer in the United States;

 

3.             no
directed selling efforts have been made in the United States in contravention
of the requirements of Rule 903(b) or Rule 904(b) of Regulation S, as applicable;

 

4.             the
transaction is not part of a plan or scheme to evade the registration requirements
of the Securities Act; and

 

5.             we
have advised the transferee of the transfer restrictions applicable to the Notes.

 

C-1

 

You
and the Company are entitled to rely upon this letter and are irrevocably authorized
to produce this letter or a copy hereof to any interested party in any
administrative or legal proceedings or official inquiry with respect to the
matters covered hereby. Terms used in this certificate have the meanings set
forth in Regulation S.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  [Name of
  Transferor]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signature

  

 

C-2Exhibit 4.9

 

 

 

 

Registration Rights Agreement

 

Dated As of October 15, 2007

 

among

 

THE AES CORPORATION

 

and

 

Deutsche Bank Securities Inc.,

 

Credit Suisse Securities (USA) LLC

 

and

 

Merrill Lynch, Pierce, Fenner & Smith

Incorporated

 

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights Agreement (the “Agreement”)
is made and entered into this 15th day of October, 2007 among The
AES Corporation, a Delaware corporation (the “Company”) and Deutsche Bank Securities Inc., Credit Suisse
Securities (USA) LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated
(collectively, the “Initial Purchasers”).

 

This Agreement is made pursuant to the
Purchase Agreement, dated October 9, 2007, among the Company and the Initial
Purchasers (the “Purchase Agreement”), which provides for the sale by the
Company to the Initial Purchasers of an aggregate of $500,000,000 principal amount of the Company’s 7.75% Senior Notes Due
2015 and an aggregate of $1,500,000,000 principal amount of the Company’s 8.00%
Senior Notes Due 2017 (collectively, the “Securities”). In order to
induce the Initial Purchasers to enter into the Purchase Agreement, the Company
has agreed to provide to the Initial Purchasers and their direct and indirect
transferees the registration rights set forth in this Agreement. The execution
of this Agreement is a condition to the closing under the Purchase Agreement.

 

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

 

1.             Definitions.

 

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

 

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

 

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

 

“Additional Interest” shall have the meaning
set forth in Section 2.5.

 

“Business Day” shall mean any day
except (i) a Saturday, Sunday or other day in The City of New York on
which banks are required or authorized to close or (ii) any other day on
which the SEC is closed.

 

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

 

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

 

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

 

“Effectiveness Period” shall have the
meaning set forth in Section 2.2(b) herein.

 

 

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

 

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

 

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

 

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

 

“Exchange Securities” shall mean
the 7.75% Senior Notes Due 2015 or the 8.00%
Senior Notes due 2017, as the case may be, issued by the Company under the
Indenture containing terms identical to the Securities in all material respects
(except that the additional interest rate, restrictions on transfers and
restrictive legends shall be eliminated), to be offered to Holders of Securities
in exchange for Registrable Securities pursuant to the Exchange Offer.

 

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

 

“Indenture” shall mean the Indenture
relating to the Securities, dated as of December 8, 1998, between the
Company and Wells Fargo Bank Minnesota, N.A., as successor to Bank One National
Association (formerly known as The First National Bank of Chicago), as trustee,
as the same has been or may be amended, supplemented, waived or otherwise
modified from time to time in accordance with the terms thereof.

 

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

 

“Issuer FWP” shall have the meaning
set forth in Section 4(a)(i).

 

“Majority Holders” shall mean the
Holders of a majority of the aggregate principal amount of outstanding Registrable
Securities; provided that whenever the consent or
approval of Holders of a specified percentage of Registrable Securities is required
hereunder, Registrable Securities held by the Company or any Affiliate (as
defined in the Indenture) of the Company shall be disregarded in determining
whether such consent or approval was given by the Holders of such required
percentage amount.

 

“Participating Broker-Dealer”
shall mean Deutsche Bank Securities
Inc., Credit Suisse Securities (USA) LLC and Merrill Lynch, Pierce, Fenner
& Smith Incorporated and any

 

2

 

other broker-dealer which makes a market in
the Securities and exchanges Registrable Securities in the Exchange Offer for
Exchange Securities.

 

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

 

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

 

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

 

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

 

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

 

“Registrable Securities” shall
mean the Securities and, if issued, the Private Exchange Securities; provided, however, that
Securities and, if issued, the Private Exchange Securities, shall cease to be
Registrable Securities (i) when a Registration Statement with respect to
such Securities or Private Exchange Securities shall have become or been
declared effective under the 1933 Act and such Securities or Private Exchange
Securities shall have been disposed of pursuant to such Registration Statement,
(ii) when such Securities or Private Exchange Securities have been sold to the
public pursuant to Rule l44 (or any similar provision then in force, but not
Rule 144(A)) under the 1933 Act, (iii) when such Securities or Private
Exchange Securities shall have ceased to be outstanding, (iv) when the
Exchange Offer is consummated (except in the case of Securities and Private Exchange
Securities purchased from the Company and continued to be held by the Initial Purchasers)
or (v) upon the date when such Securities or Private Exchange Securities
may be sold pursuant to Rule 144(k) under the 1933 Act (or any source or
provision then in force).

 

“Registration Default” shall have the
meaning set forth in Section 2.5.

 

“Registration Expenses” shall
mean any and all expenses incident to performance of or compliance by the
Company with this Agreement, including without limitation:  (i) all SEC registration and filing fees,
(ii) all fees and expenses incurred by the Company in connection with
compliance with state securities or blue sky laws in connection with blue sky
qualification of any of the Exchange Securities or Registrable Securities and
any filings with the National Association of Securities Dealers, Inc. (the “NASD”),
(iii) all expenses of the Company in preparing or assisting in preparing,
word processing, printing and distributing any Registration Statement, any
Prospectus, any amendments or supplements thereto, and other documents relating
to the performance of and compliance with this Agreement, (iv) all rating
agency fees, incurred by the Company, if any, (v) the reasonable and
documented fees and disbursements of

 

3

 

counsel for the Company and of the
independent registered public accounting firm of the Company, including the
expenses of any special audits required by or incident to such performance and
compliance, (vi) the reasonable and documented fees and expenses of the
Trustee, and any escrow agent or custodian, (vii) the reasonable and
documented fees and disbursements of one firm special counsel representing the
Holders of Registrable Securities and (viii) the reasonable and documented
fees and expenses of any special experts retained by the Company in connection
with any Registration Statement, but excluding any transfer taxes, if any,
relating to the sale or disposition of Registrable Securities by a Holder.

 

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

 

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

 

“Securities” shall have the meaning
set forth in the preamble.

 

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

 

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

 

“Suspension Period” shall have the
meaning set forth in Section 2.2 hereof.

 

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

 

2.             Registration Under the 1933 Act.

 

2.1           Exchange Offer. The
Company shall, for the benefit of the Holders, at the Company’s cost use its
commercially reasonable efforts to, (A) prepare and file with the SEC not
later than September 30, 2008, an Exchange Offer Registration Statement on an
appropriate form under the 1933 Act with respect to a proposed Exchange Offer
and the issuance and delivery to the Holders, in exchange for the Registrable
Securities (other than Private Exchange Securities), of a like principal amount
of Exchange Securities, (B) cause the Exchange Offer Registration Statement to become
or be declared effective under the 1933 Act by December 31, 2008, (C) keep
the Exchange Offer Registration Statement effective until the closing of the
Exchange Offer and (D) cause the Exchange Offer to be consummated by December
31, 2008. The Exchange

 

4

 

Securities will be issued under the Indenture. Upon the effectiveness
of the Exchange Offer Registration Statement, the Company shall promptly
commence the Exchange Offer, it being the objective of such Exchange Offer to
enable each Holder eligible and electing to exchange Registrable Securities for
Exchange Securities (assuming that such Holder (a) is not an affiliate of
the Company within the meaning of Rule 405 under the 1933 Act, (b) is not
a broker-dealer tendering Registrable Securities acquired directly from the Company
for its own account, (c) acquired the Exchange Securities in the ordinary
course of such Holder’s business and (d) has no arrangements or
understandings with any Person to participate in the Exchange Offer for the
purpose of distributing the Exchange Securities) to transfer such Exchange Securities
from and after their receipt without any limitations or restrictions under the
1933 Act and under state securities or blue sky laws.

 

In connection with the Exchange Offer, the
Company shall:

 

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

 

(b)           keep the Exchange
Offer open for acceptance for a period of not less than 20 Business Days
after the date notice thereof is mailed to the Holders (or longer if required
by applicable law) (such period referred to herein as the “Exchange Period”);

 

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

 

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

 

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

 

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

 

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

 

5

 

that such securities shall bear appropriate
transfer restrictions) to the Exchange Securities (the “Private Exchange
Securities”).

 

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

 

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

 

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

 

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

 

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

 

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

 

Interest on each Exchange Security and
Private Exchange Security will accrue from the last date on which interest was
paid on the Registrable Securities surrendered in exchange therefor or, if no
interest has been paid on the Registrable Securities, from the date of original
issuance. The Exchange Offer and the Private Exchange shall not be subject to
any conditions, other than (i) that the Exchange Offer or the Private Exchange,
or the making of any exchange by a Holder, does not violate applicable law,
rule or regulation or any applicable interpretation of the staff of the SEC,
(ii) the due tendering of Registrable Securities in accordance with the
Exchange Offer and the Private Exchange, (iii) that each Holder of
Registrable Securities exchanged in the Exchange Offer shall have represented
that (A) it is not an affiliate (as defined in

 

6

 

Rule 405 under the 1933 Act) of the Company
or, if it is such an affiliate, it will comply with the registration and
prospectus delivery requirements of the 1933 Act, to the extent applicable;
(B) all Exchange Securities to be received by it shall be acquired in the
ordinary course of its business and that at the time of the consummation of the
Exchange Offer it shall have no arrangement or understanding with any person to
participate in the distribution (within the meaning of the 1933 Act) of the
Exchange Securities, (C) if such Holder is not a broker-dealer, that it is
not engaged in, and does not intend to engage in, the distribution of the
Exchange Securities, (D) if such Holder is a broker-dealer, that it will
receive Exchange Securities for its own account in exchange for the Securities
that were acquired as a result of market-making activities or other trading
activities and that it will be required to acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities and (E) shall
have made such other representations as may be reasonably necessary under
applicable SEC rules, regulations or interpretations to render the use of Form
S-4 or other appropriate form under the 1933 Act available and (iv) that
no action or proceeding shall have been instituted or threatened in any court
or by or before any governmental agency with respect to the Exchange Offer or
the Private Exchange which, in the Company’s judgment, would reasonably be
expected to impair the ability of the Company to proceed with the Exchange
Offer or the Private Exchange. The Company shall inform the Initial Purchasers
of the names and addresses of the Holders to whom the Exchange Offer is made,
and the Initial Purchasers shall have the right to contact such Holders and
otherwise facilitate the tender of Registrable Securities in the Exchange Offer.

 

2.2           Shelf Registration. (i)
If, because of any changes in law, SEC rules or regulations or applicable
interpretations thereof by the staff of the SEC, the Company is not permitted
to effect the Exchange Offer as contemplated by Section 2.1 hereof,
(ii) if for any other reason the Exchange Offer is not consummated by December
31, 2008, (iii) upon receipt of a request of any of the Initial Purchasers
that they are not permitted under the applicable law or interpretations of the
SEC to participate in the Exchange Offer or (iv) if and to the extent that a
Holder is not permitted to participate in the Exchange Offer or does not
receive fully tradeable Exchange Securities pursuant to the Exchange Offer,
then in case of each of clauses (i) through (iv) the Company shall, at its
cost:

 

(a)           As promptly as
practicable, file with the SEC, and thereafter shall use its commercially
reasonable efforts to cause to be declared or become effective as promptly as
practicable but no later than December 31, 2008, a Shelf Registration Statement
relating to the offer and sale of the Registrable Securities by the Holders
from time to time in accordance with the methods of distribution elected by the
Majority Holders participating in the Shelf Registration and set forth in such
Shelf Registration Statement.

 

(b)           Use its commercially
reasonable efforts to keep the Shelf Registration Statement continuously
effective in order to permit the Prospectus forming part thereof to be usable
by Holders for (i) a period of two years from the Closing Date, or (ii) for
such shorter period that will terminate when all Registrable Securities covered
by the Shelf Registration Statement have been sold pursuant to the Shelf
Registration Statement or cease to be outstanding or otherwise to be Registrable
Securities (the “Effectiveness Period”).

 

7

 

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

 

Subject to the limitation set forth in the
next succeeding paragraph and subject to the provisions of Section 3, the Company
shall be entitled to suspend its obligation to file any amendment to the Shelf
Registration Statement, furnish any supplement or amendment to a Prospectus
included in the Shelf Registration Statement, make any other filing with the
SEC, cause the Shelf Registration Statement or other filing with the SEC to
remain effective or take any similar action (collectively, “Registration
Actions”) upon (A) the issuance by the SEC of a stop order suspending the
effectiveness of the Shelf Registration Statement or the initiation of proceedings
with respect to the Shelf Registration Statement under Section 8(d) or 8(e) of
the 1933 Act, (B) the occurrence of any event or the existence of any fact
as a result of which the Shelf Registration Statement would or shall contain
any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein not
misleading, or the related Prospectus would or shall contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, or (C) the
occurrence or existence of any corporate development that, in the discretion of
the Company, makes it appropriate to postpone or suspend the availability of
the Shelf Registration Statement and the related Prospectus, it being
understood that the Company may not invoke this Clause C for the purpose of
avoiding its obligations under this Agreement. Upon the occurrence of any of
the conditions described in (A), (B) or (C) above, the Company shall give
prompt notice (a “Suspension Notice”) thereof to the Holders. Upon the
termination of such condition, the Company shall give prompt notice thereof to
the Holders and shall promptly proceed with all Registration Actions that were
suspended pursuant to this paragraph and comply as promptly as practicable with
the requirements of Section 3(1) hereof, if applicable.

 

The Company may suspend Registration Actions
pursuant to the preceding paragraph for one or more periods (each, a “Suspension
Period”) not to exceed, in the aggregate, ninety days in any twelve month
period, during which no Additional Interest (as defined in Section 2.5) shall
be payable. If one or more Suspension Periods exceed 120 days in any twelve
month period, then Additional Interest will begin to accrue on the 121st
day until such Registration Default is cured. Each Suspension Period shall be
deemed to begin on the date the relevant Suspension Notice is given to the
Holders and shall end on the date on which the Company gives

 

8

 

the Holders a notice that the Suspension
Period has terminated. The Company shall extend the Effectiveness Period (or
the period during which Participating Broker-Dealers are entitled to use the Prospectus
included in the Exchange Offer Registration Statement in connection with the
resale of the Exchange Securities described in Section 3(f) below) by the total
number of days during which a Suspension Period was in effect, so long as there
are Registrable Securities. Notwithstanding anything to the foregoing, the
Company shall at all times use its reasonable best efforts to end any
Suspension Period at the earliest possible time.

 

The Company further agrees, if necessary, to
supplement or amend the Shelf Registration Statement, as required by Section
3(b) below, and to furnish to the Holders of Registrable Securities copies of
any such supplement or amendment promptly after its being used or filed with
the SEC.

 

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

 

2.4           Effectiveness.

 

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

 

(b)           An Exchange Offer Registration
Statement pursuant to Section 2.1 hereof or a Shelf Registration Statement pursuant
to Section 2.2 hereof will not be deemed to have become effective unless either
it has been declared effective by the SEC or it automatically becomes effective
pursuant to the rules and regulations under the 1933 Act; provided,
however, that if, after it has become or
been declared effective, the offering of Registrable Securities pursuant to an
Exchange Offer Registration Statement or a Shelf Registration Statement is
interfered with by any stop order, injunction or other order or requirement of
the SEC or any other governmental agency or court, such Registration Statement
will be deemed not to have become effective during the period of such
interference, until the offering of Registrable Securities pursuant to such
Registration Statement may legally resume.

 

2.5           Interest. In the event that
either the Exchange Offer is not consummated or if obligated to file a Shelf Registration
Statement, such Shelf Registration Statement does not become or is not declared
effective, in either case, on or prior to December 31, 2008 (such event
referred to as a “Registration Default”), the interest rate borne by the
Securities shall be increased (“Additional Interest”) by one-quarter of one
percent per annum upon the occurrence of each Registration Default, which rate
will increase by one quarter of one percent each 90-day

 

9

 

period that such Additional Interest continues to accrue under any such
circumstance, provided that the maximum aggregate increase in the interest rate
will in no event exceed half of one percent (0.50%) per annum. Following the
cure of all Registration Defaults the accrual of Additional Interest will cease
and the interest rate will revert to the original rate.

 

Subject to the Company’s ability to declare
Suspension Periods, if the Shelf Registration Statement is unusable by the
Holders for any reason, and the aggregate number of days in any consecutive
twelve-month period for which the Shelf Registration Statement shall not be
usable exceeds 90 days in the aggregate, then the interest rate borne by the Registrable
Securities will be increased by 0.25% per annum of the principal amount of the Registrable
Securities for the first 90-day period (or portion thereof) beginning on the 91st
such date that such Shelf Registration Statement ceases to be usable, which
rate shall be increased by an additional 0.25% per annum of the principal
amount of the Registrable Securities at the beginning of each subsequent 90-day
period, provided that the maximum aggregate increase in the interest rate will
in no event exceed half of one percent (0.50%) per annum. Any amounts payable
under this paragraph shall also be deemed “Additional Interest” for purposes of
this Agreement. Upon the Shelf Registration Statement once again becoming
usable, the interest rate borne by the Registrable Securities will be reduced
to the original interest rate if the Company is otherwise in compliance with
this Agreement at such time.

 

Additional Interest shall be computed based
on the actual number of days elapsed in each 90-day period in which the Shelf
Registration Statement is unusable.

 

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

 

3.             Registration Procedures.

 

In connection with the obligations of the
Company with respect to Registration Statements pursuant to Sections 2.1 and
2.2 hereof, the Company shall, subject to the rights of the Company to invoke
and maintain a Suspension Period in accordance with Section 2.2 without being
in violation of any of the provisions hereunder:

 

(a)           prepare and file
with the SEC a Registration Statement, within the relevant time period
specified in Section 2, on the appropriate form under the 1933 Act, which form
(i) shall be selected by the Company, (ii) shall, in the case of a Shelf
Registration, be available for the sale of the Registrable Securities by the
selling Holders thereof, (iii) shall comply as to form in all material
respects with the requirements of the applicable form and include or
incorporate by reference all financial statements required by the SEC to be
filed therewith or incorporated by reference therein, and (iv) shall comply in

 

10

 

all material respects
with the applicable requirements of Regulation S-T under the 1933 Act, and use
its commercially reasonable efforts to cause such Registration Statement to
become effective and remain effective in accordance with Section 2 hereof;

 

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

 

(c)           in the case of a
Shelf Registration, (i) notify each Holder of Registrable Securities of the
filing of the Shelf Registration Statement with respect to the Registrable
Securities; (ii) furnish to each Holder of Registrable Securities, without
charge, electronic copies of each Prospectus, including each preliminary
Prospectus, and any amendment or supplement thereto and such other documents as
such Holder may reasonably request, including financial statements and
schedules and, if the Holder so requests, all exhibits in order to facilitate
the public sale or other disposition of the Registrable Securities; and (iii)
hereby consent to the use of the Prospectus or any amendment or supplement
thereto by each of the selling Holders of Registrable Securities in connection
with the offering and sale of the Registrable Securities covered by the
Prospectus or any amendment or supplement thereto;

 

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

 

(e)           notify as promptly
as practicable each Holder of Registrable Securities under a Shelf Registration
or any Participating Broker-Dealer who has notified the Company that it is
utilizing the Exchange Offer Registration Statement as provided in paragraph
(f) below and, if requested by such Holder or Participating Broker-Dealer,
confirm such advice in writing promptly (i) when a Registration Statement has
become effective and when any post-effective amendments thereto become
effective, (ii) of any request by

 

11

 

the SEC or any
state securities authority for post-effective amendments and supplements to a
Registration Statement and Prospectus or for additional information after the
Registration Statement has become effective, (iii) of the issuance by the
SEC or any state securities authority of any stop order suspending the
effectiveness of a Registration Statement or the initiation of any proceedings
for that purpose, (iv) of the happening of any event or the discovery of
any facts during the period a Shelf Registration Statement is effective which
makes any statement made in such Registration Statement or the related Prospectus
untrue in any material respect or which requires the making of any changes in
such Registration Statement or Prospectus in order to make the statements
therein (in the case of the Prospectus in light of the circumstances under
which they were made) not misleading, provided, however, that no notice by the Company shall be required
pursuant to this clause (v) in the event that the Company either promptly files
a Prospectus supplement to update the Prospectus or a Form 8-K or other
appropriate Exchange Act report that is incorporated by reference into such
Registration Statement, which, in either case, contains the requisite
information with respect to such event or facts that results in such
Registration Statement no longer containing any untrue statement of material
fact or omitting to state a material fact necessary to make the statements
contained therein not misleading, (vi) of the receipt by the Company of
any notification with respect to the suspension of the qualification of the
Registrable Securities or the Exchange Securities, as the case may be, for sale
in any jurisdiction or the initiation or, to the Company’s knowledge, threatening
of any proceeding for such purpose and (vii) of any determination by the
Company that a post-effective amendment to such Registration Statement would be
appropriate, other than post-effective amendment solely to add selling Holders;

 

(f)            in the case of the
Exchange Offer Registration Statement (i) include in the Exchange Offer
Registration Statement a section entitled “Plan of Distribution” which section
shall be reasonably acceptable to Deutsche Bank Securities Inc. on behalf of
the Participating Broker-Dealers, and which shall contain a summary statement
of the positions taken or policies made by the staff of the SEC with respect to
the potential “underwriter” status of any broker-dealer that holds Registrable
Securities acquired for its own account as a result of market-making activities
or other trading activities and that will be the beneficial owner (as defined
in Rule 13d-3 under the 1934 Act) of Exchange Securities to be received by such
broker-dealer in the Exchange Offer, whether such positions or policies have
been publicly disseminated by the staff of the SEC or such positions or
policies, in the reasonable judgment of Deutsche Bank Securities Inc. on behalf
of the Participating Broker-Dealers and its counsel, represent the prevailing
views of the staff of the SEC, including a statement that any such
broker-dealer who receives Exchange Securities for Registrable Securities
pursuant to the Exchange Offer may be deemed a statutory underwriter and must
deliver a prospectus meeting the requirements of the 1933 Act in connection
with any resale of such Exchange Securities, (ii) furnish to each
Participating Broker-Dealer, without charge, electronic copies of each Prospectus
included in the Exchange Offer Registration Statement, including any
preliminary prospectus, and any amendment or supplement thereto, as such
Participating Broker-Dealer may reasonably request for a period not to exceed
90 days after the consummation of the Exchange Offer, (iii) hereby consent
to the use of the Prospectus forming part of the Exchange Offer Registration
Statement or any amendment or supplement thereto, by any Person subject to the

 

12

 

prospectus
delivery requirements of the SEC, including all Participating Broker-Dealers,
in connection with the sale or transfer of the Exchange Securities covered by
the Prospectus or any amendment or supplement thereto, and (iv) include in the
transmittal letter or similar documentation to be executed by an exchange
offeree in order to participate in the Exchange Offer (x) the following provision:

 

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

 

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

 

(g)           use commercially reasonable
efforts to obtain the withdrawal of any order suspending the effectiveness of a
Registration Statement as soon as practicable;

 

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

 

(i)            if electronic
global certificates for the Registrable Securities are not then available,
cooperate with the selling Holders of Registrable Securities to facilitate the
timely preparation and delivery of certificates representing Registrable Securities
to be sold and not bearing any restrictive legends (other than as required by applicable
law); and enable such Registrable Securities to be in such denominations
(consistent with the provisions of the Indenture) and registered in such names
as the selling Holders may reasonably request at least three business days
prior to the closing of any sale of Registrable Securities;

 

(j)            in the case of a
Shelf Registration, upon the occurrence of any event or the discovery of any
facts, each as contemplated by Sections 3(e)(ii), (iii), (iv), (v), (vi) and
(vii) hereof and subject to the Company’s ability to declare Suspension Periods,
as promptly as practicable after the occurrence of such an event, use its commercially
reasonable efforts to prepare a supplement or post-effective amendment to the
Registration Statement or the related Prospectus or any document incorporated
therein by reference or file any other required document so that, as thereafter
delivered to the purchasers of the Registrable Securities or Participating
Broker-Dealers, such Prospectus will not contain at the time of such delivery
any untrue statement of a material fact or omit to state a material fact
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. At such time as such public disclosure is
otherwise made or the Company determines that such disclosure is not necessary,
in each case,

 

13

 

to correct any
misstatement of a material fact or to include any omitted material fact, the
Company agrees promptly to notify each Holder Registrable Securities covered by
such Registration Statement of such determination and to furnish each Holder
such number of copies of the Prospectus as amended or supplemented, as such
Holder may reasonably request;

 

(k)           in the case of a
Shelf Registration, a reasonable time prior to the filing of any Registration
Statement, any Prospectus, any amendment to a Registration Statement or
amendment or supplement to a Prospectus (except for any document filed under
the 1934 Act and which is to be incorporated by reference into a Registration
Statement or a Prospectus, and except for amendments and supplements that are
filed solely to name selling Holders) after initial filing of a Registration
Statement, provide copies of such document to the Initial Purchasers on behalf
of such Holders; and make representatives of the Company as shall be reasonably
requested by the Holders of Registrable Securities, or the Initial Purchasers
on behalf of such Holders, available for discussion of such document;

 

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

 

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

 

(n)           in the case of a
Shelf Registration or if a Prospectus is required to be delivered by any
Participating Broker-Dealer in the case of an Exchange Offer, make available
for inspection during business hours by representatives of the Holders of the
Registrable Securities, any Participating Broker-Dealer and one legal firm
counsel or accountant retained by any of the foregoing, all financial and other
records, pertinent corporate documents of the Company reasonably requested by
any such persons, and cause the respective officers, directors, employees, and
any other agents of the Company to supply all information reasonably requested
by any such representative, special counsel or accountant in connection with a
Registration Statement, and make such representatives of the Company available
for discussion of such documents as shall be reasonably requested by the Initial
Purchasers;

 

(o)           (i)  in the case of an Exchange Offer Registration
Statement, a reasonable time prior to the filing of any Exchange Offer
Registration Statement, any Prospectus forming a part thereof, any amendment to
an Exchange Offer Registration Statement or

 

14

 

amendment or
supplement to such Prospectus, provide electronic copies of such document to
the Initial Purchasers and to counsel to the Initial Purchasers and make such
changes in any such document prior to the filing thereof as the Initial Purchasers
may reasonably request, and make the representatives of the Company available
for discussion of such documents as shall be reasonably requested by the Initial
Purchasers;

 

(ii)           in the case of a Shelf Registration,
a reasonable time prior to filing any Shelf Registration Statement, any Prospectus
forming a part thereof, any amendment to such Shelf Registration Statement or
amendment or supplement to such Prospectus (except for amendments and
supplements that are filed solely to name selling Holders), provide electronic copies
of such document to the Holders of Registrable Securities, to the Initial Purchasers
and to counsel for the Holders, if any, make such changes in any such document
prior to the filing thereof as the Initial Purchasers or the counsel to the
Holders reasonably request, and make the representatives of the Company
available for discussion of such document as shall be reasonably requested by
the Holders of Registrable Securities, the Initial Purchasers on behalf of such
Holders or counsel for the Holders of Registrable Securities; and

 

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

 

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

 

In the case of a Shelf Registration
Statement, each Holder agrees that, upon receipt of any notice from the Company
of the happening of any event or the discovery of any facts, each of the kind
described in Section 3(e)(ii), (iii), (iv), (v), (vi) and (vii) hereof or a
Suspension Period, such Holder will forthwith discontinue disposition of
Registrable Securities pursuant to a Registration Statement until such Holder’s
receipt of the copies of the supplemented or amended Prospectus contemplated by
Section 3(l) hereof, and, if so directed by the Company, such Holder will deliver
to the Company (at its expense) all copies in such Holder’s possession, other
than permanent file copies then in such Holder’s possession, of the Prospectus
covering such Registrable Securities current at the time of receipt of such
notice.

 

4.             Indemnification; Contribution.

 

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

 

15

 

(i)            against any and all
loss, liability, claim, damage and expense whatsoever, as incurred, arising out
of any untrue statement or alleged untrue statement of a material fact
contained in any Registration Statement (or any amendment thereto) or any
Prospectus included therein (or any amendment or supplement thereto) or in any
Preliminary Prospectus or “issuer free writing prospectus,” as defined in Rule
433 (“Issuer FWP”) of the 1933 Act, relating to a Shelf Registration, pursuant
to which Exchange Securities or Registrable Securities were registered under
the 1933 Act, including all documents incorporated therein by reference, or the
omission or alleged omission therefrom of a material fact required to be stated
therein or necessary to make the statements therein not misleading, or arising
out of any untrue statement or alleged untrue statement of a material fact
contained in any Prospectus (or any amendment or supplement thereto) or the
omission or alleged omission therefrom of a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading;

 

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

 

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

 

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

 

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

 

16

 

be liable for any claims hereunder in excess of the amount of net
proceeds received by such Holder from the sale of Registrable Securities
pursuant to such Registration Statement (or any amendment thereto).

 

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

 

(d)           If at any time an indemnified party
shall have requested an indemnifying party to reimburse the indemnified party
for fees and expenses of counsel, such indemnifying party agrees that it shall
be liable for any settlement of the nature contemplated by Section 4(a)(ii)
effected without its written consent if (i) such settlement is entered into
more than 60 days after receipt by such indemnifying party of the aforesaid
request, (ii) such indemnifying party shall have received notice of the terms
of such settlement at least 45 days prior to such settlement being entered into
and (iii) such indemnifying party shall not have reimbursed such indemnified
party in accordance with such request prior to the date of such settlement.

 

(e)           If the indemnification provided for
in this Section 4 is for any reason unavailable to or insufficient to hold harmless
an indemnified party in respect of any losses, liabilities, claims, damages or
expenses referred to therein, then each indemnifying party shall contribute to
the aggregate amount of such losses, liabilities, claims, damages and expenses
incurred by such indemnified party, as incurred, in such proportion as is
appropriate to reflect the relative fault of the Company on the one hand and
the Holders and the Initial Purchasers on the other hand in connection with the
statements or omissions which resulted in such losses, liabilities, claims,
damages or expenses, as well as any other relevant equitable considerations.

 

The relative fault of the Company on the one
hand and the Holders and the Initial Purchasers on the other hand shall be
determined by reference to, among other things, whether any such untrue or
alleged untrue statement of a material fact or omission or alleged omission to

 

17

 

state a material fact relates to information
supplied by the Company, the Holders or the Initial Purchasers and the parties’
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

 

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

 

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

 

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

 

For purposes of this Section 4, each Person,
if any, who controls an Initial Purchaser or Holder within the meaning of Section
15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to
indemnification and contribution as such Initial Purchaser or Holder, and each officer
and director of the Company, and each Person, if any, who controls the Company
within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act
shall have the same rights to contribution as the Company. The Initial
Purchasers’ respective obligations to contribute pursuant to this Section 4 are
several in proportion to the principal amount of Securities set forth opposite
their respective names in Schedule I to the Purchase Agreement and not joint.

 

5.             Miscellaneous.

 

5.1           Rule 144 and Rule 144A.
If the Company ceases to be so required to file reports pursuant to Section 13
or 15(d) of the Exchange Act, the Company covenants that it will upon the
request of any Holder of Registrable Securities (a) make publicly available
such information as is necessary to permit sales pursuant to Rule 144 under the
1933 Act, (b) deliver such information to a prospective purchaser as is
necessary to permit sales pursuant to Rule 144A under the 1933 Act and it will
take such further action as any Holder of Registrable Securities may reasonably
request, and (c) take such further action that is reasonable in the circumstances,
in each case, to the extent required from time to time to enable such Holder to
sell its Registrable Securities without registration under the 1933 Act within
the limitation of the exemptions provided by (i) Rule 144 under the 1933 Act,
as such Rule may be amended from time to time,

 

18

 

(ii) Rule 144A under the 1933 Act, as such Rule may be amended from
time to time, or (iii) any similar rules or regulations hereafter adopted by
the SEC.

 

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

 

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

 

5.4           Notices. All notices and other
communications provided for or permitted hereunder shall be made in writing by
hand delivery, registered first-class mail, telex, telecopier, or any courier
guaranteeing overnight delivery (a) if to a Holder, at the most current address
given by such Holder to the Company by means of a notice given in accordance
with the provisions of this Section 5.4, which address initially is the address
set forth in the Purchase Agreement with respect to the Initial Purchasers; and
(b) if to the Company, initially at the Company’s address set forth in the
Purchase Agreement, and thereafter at such other address of which notice is
given in accordance with the provisions of this Section 5.4.

 

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

 

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

 

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

 

19

 

and, if applicable, the Purchase Agreement, and such person shall be
entitled to receive the benefits hereof.

 

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

 

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

 

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

 

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

 

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

 

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

 

20

 

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

 

	
   

  	
  THE AES
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ VICTORIA
  HARKER

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Victoria
  Harker

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Confirmed
  and accepted as

  	
   

  	
   

  
	
  of the date first above

  	
   

  	
   

  
	
  written:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DEUTSCHE BANK SECURITIES INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ FRANK KINNEY

  	
   

  	
   

  	
   

  
	
   

  	
  Name: Frank Kinney

  	
   

  	
   

  
	
   

  	
  Title:  Managing Director

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ DAVID CRESCENZI

  	
   

  	
   

  	
   

  
	
   

  	
  Name: David Crescenzi

  	
   

  	
   

  
	
   

  	
  Title:   Director

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CREDIT SUISSE SECURITIES (USA) LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ DAVID S. ALTERMAN

  	
   

  	
   

  	
   

  
	
   

  	
  Name: David S. Alterman

  	
   

  	
   

  
	
   

  	
  Title:   Director

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  MERRILL LYNCH, PIERCE, FENNER & SMITH

  	
   

  	
   

  
	
  INCORPORATED

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ PARTHO SANYAL

  	
   

  	
   

  	
   

  
	
   

  	
  Name: Partho Sanyal

  	
   

  	
   

  
	
   

  	
  Title: Vice President

  	
   

  	
   

  
							

 

21

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