Document:

exv10w5

 

Exhibit 10.5

THIS AGREEMENT entered into the 6th day of August, 2002.

	 	 	 	 	 
	BETWEEN:	 	 	 	CAMPBELL
RESOURCES INC.
	 	 	 	 	a corporation incorporated under
	 	 	 	 	the laws of Canada
	 	 	 	 	 
	 	 	 	 	(hereinafter called the “Campbell”)
	 	 	 	 	 
	 	 	
-and-	 	 
	 	 	 	 	 
	 	 	 	 	LUCIE BRUN,
	 	 	 	 	of the City of Montréal,
	 	 	 	 	in the Province of Québec
	 	 	 	 	 
	 	 	 	 	(hereinafter called the “Employee”)

WHEREAS the Employee has been employed by a predecessor company since April,
1996 and has been an executive officer of Campbell since January, 2001;

AND WHEREAS Campbell wishes to enter into this agreement to provide certain
terms and conditions of the Employee’s continued employment as Executive Vice
President and Chief Administrative Officer of Campbell, including certain
rights in the event of a Change of Control, as more particularly described
herein;

     NOW THEREFORE THIS AGREEMENT WITNESSETH that for other good and valuable
consideration, and the sum of one dollar ($1.00) now paid by each party hereto
to the other (the receipt whereof is hereby by each of them acknowledged), the
parties here covenant and agree as follows:

1.     The Employee shall be employed as Executive Vice President and Chief
Administrative Officer of Campbell on a full time basis and shall perform such
duties and exercise such powers as are from time to time assigned to the
Employee. The Employee shall also serve as a director, officer or employee of
such affiliates or associates of Campbell as Campbell may from time to time
require. The Employee shall devote her full time and attention to the affairs
of Campbell and its affiliates and associates.

2.     The Employee shall be paid an annual salary of $110,000, payable bi-weekly
in arrears. Salary reviews shall be carried out by the Compensation Committee
of the Board of Directors on a periodic basis.

3.     While employed by Campbell, the Employee shall be entitled to health and
other benefits, as set out on Schedule A which are provided to senior employees
by Campbell under its benefit plans subject to such eligibility and other
requirements as may apply. Campbell shall provide pension benefits through
participation in a Campbell Pension Plan or at Campbell’s option, through
contributions made to the Employee’s RRSP, such pension benefits to be in
accordance with Campbell’s policy for senior employees.

 

 

4.     The Employee shall be entitled to four weeks annual vacation to be taken at
such time as Campbell may prescribe. Only two weeks of this vacation
entitlement may be carried forward from year to year provided that no vacation
entitlement may be carried forward for more than one year.

5.     Subject to the provisions of paragraph 9 hereof, the employee’s employment
under this agreement may be terminated as follows:

	 	(a)	 	by the Employee, upon three months notice in writing;
	 
	 	(b)	 	in the event of a Change of Control, as defined in paragraph
13, the Employee shall have the right, within six months thereof on
thirty days notice in writing to Campbell, to resign her position as
Executive Vice President and Chief Administrative Officer and any
other directorships or offices that she may hold as a result of her
employment with Campbell and upon such resignation to be paid
forthwith twenty-four months salary by way of lump sum payment plus
benefits as set out in paragraphs 7 and 8 below. In addition, the
employee shall be entitled to have an additional twenty-four months
of pension benefits as described in paragraph 3 of this Agreement
added to her pension benefits entitlement. Such pension benefit is
to be calculated on the basis that the Employee had been employed
for the additional twenty-four months at a salary equal to that paid
to the Employee at the time of such resignation;
	 
	 	(c)	 	by Campbell, for cause, at any time forthwith, without notice
or payment in lieu of notice. For greater certainty, cause shall
not include the refusal of the Employee to accept either a
relocation from her existing city of residence or a change in the
nature of employment that would lessen the status, authority or
responsibility of the Employee; or
	 
	 	(d)	 	by Campbell, upon payment forthwith of a lump sum amount
equal to twenty-four months salary in lieu of notice plus benefits
as set out in paragraphs 7 and 8 below.

6.     For the purposes of this agreement, the salary payable to the Employee under
subparagraphs 5(b) or (d) is in lieu of notice or other compensation to which
the Employee may otherwise be entitled and the Employee shall be under no
obligation to act to mitigate any payment due hereunder or otherwise suffer a
reduction of any payment due hereunder to the Employee by virtue of any
compensation or payments which the Employee may receive after cessation of
employment by Campbell from any other source whatsoever.

7.     In the event that the Employee resigns under subparagraph 5(b) or the
Employee’s employment is terminated under subparagraph 5(d), the Employee shall
be entitled to continuation of the benefits set out in paragraph 3 for
twenty-four months from the date of resignation or termination or payment
forthwith by Campbell of a lump sum amount in lieu thereof.

8.     The Employee’s outstanding rights if any at the time of resignation or
termination under Campbell’s Employee Incentive Plan shall continue for
twenty-four months from the date of resignation or termination except that the
Employee’s right under any stock options outstanding at the time of resignation
or termination shall immediately become fully exercisable and shall

2

 

expire at
the close of business on the ninetieth day following the date of resignation or
termination or the next business day if the ninetieth day is not a business
day. Should the Employee exercise outstanding options, Campbell shall deliver
the share certificate(s) representing the shares issued pursuant to the
exercise of options against payment to Campbell of the aggregate exercise price
at a closing to be held within five (5) business days of receipt by Campbell of
notice of exercise of option in writing. If the Employee has not previously
elected to participate in the share purchase plan of the Employee Incentive
Plan, she shall be deemed not to have any outstanding rights under such plan.

9.     In the event that the Employee becomes permanently disabled, the Employee or
Campbell may terminate this agreement by giving 90 days notice in writing
provided that the Employee shall be entitled to receive long term disability
benefits under Campbell’s long term disability policy and provided that
Campbell agrees to pay to the Employee, a monthly amount equal to the amount of
the Employee’s monthly salary not covered by the benefits under Campbell’s long
term disability policy along with the other benefits to which the Employee
would be entitled for twenty-four months from the date that the Employee
becomes permanently disabled. In the event that the Employee is not entitled
to receive long term disability benefits under Campbell’s long term disability
policy or Campbell will not agree to pay the Employee the amount not covered by
the long term disability policy of Campbell, then Campbell will only be
entitled to terminate this agreement pursuant to subparagraph 5(d). For the
purposes of this paragraph, permanent disability means any medical condition,
as determined by a legally qualified medical practitioner selected by Campbell
which to a substantial degree, prevents or impairs the Employee from performing
her obligations and duties and has existed for a continuous period of more than
120 days in any 365 consecutive days or for periods aggregating 185 days in any
365 consecutive days and in the opinion of the medical practitioner is like to
continue.

10.     It is agreed by the Employee and Campbell that the notice periods and
payments provided in paragraph 5 are reasonable and fair, given all the
circumstances, and that no other notice periods, express or implied, shall
apply.

11.     In the event that the Employee exercises her right of resignation under
subparagraph 5(b), or is terminated under subparagraph 5(d), subject to any
restriction in the right of Campbell to grant an indemnity to the Employee
pursuant to the provisions of the Canada Business Corporations Act, Campbell
hereby agrees to indemnify and save the Employee, her heirs, executors,
administrators and other legal personal representatives, harmless from and
against any and all losses, claims, actions, suits, proceedings, damages,
liabilities, charges, or expenses of whatsoever nature or kind, (including,
without limitation, any investigation expenses or other expenses and
disbursements incurred in connection with testifying or otherwise participating
in any legal or other proceedings before any court or regulatory authority) ,
that the Employee may sustain or incur, arising from or connected with or in
respect of any actions, suits or proceedings
proposed, commenced or prosecuted against the Employee or to which the Employee
may be or may become subject, by reason of or in respect of, anything done or
permitted by the Employee in or about the execution of the duties of the
Employee in her role as an executive officer or employee of Campbell, or any of
its associated or affiliated companies, or by reason of her acting or having
acted as an executive officer of Campbell, or any of its associated or
affiliated companies and from all other costs, charges and expenses that the
Employee may sustain or incur by reason of or arising from or in any manner
connected with or in relation to her employment by Campbell or the affairs
thereof.

3

 

     In case any action or other proceedings is brought against the Employee,
in respect of which indemnity may be sought hereunder, the Employee shall give
Campbell prompt notice of any such action or other proceeding of which the
Employee has knowledge, and Campbell shall undertake the investigation and
defence thereof on behalf of the Employee, including employment of counsel
acceptable to the Employee and payment of all fees and expenses.

     No admission of liability and no settlement of any action or other
proceedings brought against the Employee shall be made without the consent of
Campbell and the Employee, such consent not to be unreasonably withheld.

     Notwithstanding that Campbell agrees to undertake the investigation and
defence
of any action or other proceeding brought against the Employee, the Employee
shall have the right to employ separate counsel in any such proceeding and
participate in the defence thereof, but Campbell shall not be liable to pay the
fees and expenses of such counsel unless:

	 	(a)	 	employment of such counsel has been authorized by Campbell,
or
	 
	 	(b)	 	Campbell has not assumed the defense of the action or other
proceedings within a reasonable period of time after receiving
notice thereof, or
	 
	 	(c)	 	the named parties to any such action or other proceedings
include Campbell and the Employee, and the Employee shall have been
advised by counsel that there may be a conflict of interest between
Campbell and the Employee, or
	 
	 	(d)	 	there are one or more legal defences available to the
Employee which are different from or in addition to those available
to Campbell.

     The indemnity herein provided to the Employee shall not apply in the event
and to the extent that a court of competent jurisdiction in a final judgement
shall determine that the Employee was guilty of gross negligence or fraud.

12.     In the event that the Employee exercises her right of resignation under
subparagraph 5(b) or is terminated under subparagraph 5(d), Campbell hereby
agrees, effective the date of such resignation, to release, remise, acquit and
forever discharge the Employee, her heirs, executors, administrators and other
legal personal representatives and all of the Employee’s respective lands,
assets, properties, estates and effects whatsoever and wheresoever situate, of
and from any and all liabilities of every nature and kind, whether contingent
or otherwise, debts, sum and sums of
money, accounts, dues, contracts, agreements, indemnity, covenants, whether
express or implied, claims, demands, legal costs, interest, loss or injury of
every kind or nature whatsoever, actions, suits damages, causes of action,
manner of actions, claims, counter-claims and demands whatsoever and however
arising either at law or in equity or otherwise, against the Employee which
Campbell ever had, has at the date of such resignation or which Campbell, its
successors or assigns or any of them, at any time thereafter can, shall, or may
have, for or by reason of, or in any way arising from, any cause, matter or
thing whatsoever existing up to the date of such resignation, including,
without limitation, any matter arising out of or in any way related to or
connected with or by reason of the Employee’s having been an executive officer
or employee of Campbell, or any of its associated or affiliated companies, or
by virtue of the employment of the Employee by Campbell. The release and
discharge provided herein shall not apply in circumstances in which a court of
competent jurisdiction in a final judgment shall determine that the Employee
was guilty of gross negligence or fraud.

4

 

     For greater certainty, this release and discharge does not waive
Campbell’s right to collect money loaned to the Employee which is validly owing
and outstanding at the time of exercise of the right of resignation or
termination of employment.

13.     For purposes of this agreement, “Change of Control” means at any time from
the effective date of this agreement:

	 	(a)	 	a change of one-third or more of the directors of Campbell
unless approved by a majority of the Board of Directors; or
	 
	 	(b)	 	any acquisition of thirty per cent (30%) or more of the
common shares of Campbell, or voting rights in respect thereof, by
any person or company which is accompanied by a request by that
person for representation on the Board of Directors of Campbell and
which acquisition is not approved by a majority of the directors of
Campbell.

14.     Any notice or other communication required or permitted to be given or made
hereunder shall be in writing and shall be well and sufficiently given or made
if (a) enclosed in a sealed envelope and delivered in person to the party
hereto to whom it is addressed (or in the case of Campbell, to the receptionist
or other responsible employee, not being the Employee) at the relevant address
set forth below; or (b) telexed, telegraphed, telecopied or sent by other means
of recorded electronic communication if to Campbell, addressed to the
President, Suite 1405, 1155 University, Montréal, Québec H3B 3A7 and if to the
Employee, addressed to her at her most recent address as shown on the records
of Campbell. Any notice or other communication so given or made shall be deemed
to have been given or made and to have been received on the day of delivery, if
delivered, and the day of sending, if sent by telex, telegraph, telecopy or
other means of recorded electronic communication, provided such delivery or
sending is during normal business hours on a business day or if not on the next
business day thereafter. Either party hereto may change her or its address for
notice by notice to the other party hereto given in the manner aforesaid.

15.     No provision of this agreement may be modified or amended unless such
modification or
amendment is authorized by the Board of Directors or a Committee thereof and is
agreed to in writing, signed by the Employee and Campbell. No waiver by either
party hereto or any breach by the other party hereto of any condition or
provision of this agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the time or any
prior or subsequent time.

16.     This agreement contains all of the terms and conditions agreed by the
parties hereto and supersedes all prior agreements and understandings. No
agreements or representations, oral or otherwise, express or implied, with
respect to the employment of the Employee by Campbell have been made by either
party which are not set forth expressly in this agreement.

17.     This agreement may not be assigned by either party without consent.

18.     This agreement shall enure to the benefit of and be binding upon the
parties hereto and their respective heirs, executors, administrators and
successors.

5

 

19.     This agreement shall be subject to and governed by the laws of the Province
of Québec. The Courts of Québec shall have exclusive jurisdiction with respect
to any dispute or other matter arising hereunder.

20.     The invalidity, illegality or unenforceability of any provision hereof
shall not in any way affect or impair the validity, legality or enforceability
of the remaining provisions hereof. The French version of the Agreement shall
govern all disputes.

21.     The legal fees and other costs and expenses pertaining to the enforcement
of this agreement or any of the terms hereof shall be borne by Campbell and
shall be paid forthwith upon demand by the Employee on submission of duly
receipted accounts.

22.     The Employee acknowledges and agrees that she has been given full
opportunity to obtain independent legal advice with respect to this agreement
and executes this agreement voluntarily and with full knowledge of the rights
granted and obligations imposed hereby.

     IN WITNESS WHEREOF Campbell has hereunto affixed its corporate seal under
the hands of its proper officers in that behalf duly authorized and the
Employee has hereto affixed her hand and seal.

	 	 	 	 	 
	 	 	
CAMPBELL RESOURCES INC.	 	 
	 	 	 	 	 
	 	 	

	 	 
	 	 	
André Y. Fortier	 	 
	 	 	
President and Chief Executive Officer	 	 
	 	 	 	 	 
	

Witness as to the signature	 	

LUCIE BRUN
	 	l.s
	of the Employee	 	 	 	 

6EXHIBIT 4(d)

                      AMERICAN ELECTRIC POWER COMPANY, INC.

                                       AND

                              THE BANK OF NEW YORK,
                                   as Trustee

                             -----------------------

                          THIRD SUPPLEMENTAL INDENTURE

                            Dated as of June 11, 2002

                                       TO

                                    INDENTURE

                             Dated as of May 1, 2001

                     5.75% Senior Notes Due August 16, 2007

                             -----------------------

<PAGE>

                               TABLE OF CONTENTS*

                                   ARTICLE ONE

                GENERAL TERMS AND CONDITIONS OF THE SENIOR NOTES

Section 1.1.   Definitions................................................1
Section 1.2.   Establishment, Designation and Principal Amount............3
Section 1.3.   Payment of Principal and Interest..........................4
Section 1.4.   Denominations..............................................6
Section 1.5.   Global Securities..........................................6
Section 1.6.   Remarketing................................................7
Section 1.7.   Optional Remarketing.......................................13
Section 1.8.   Sinking Fund...............................................14
Section 1.9.   Redemption and Repurchase..................................14
Section 1.10.  Covenants..................................................14
Section 1.11.  Defeasance.................................................14
Section 1.12.  Tax Event Redemption.......................................15
Section 1.13.  Tax Treatment..............................................16

                                   ARTICLE II

                            MISCELLANEOUS PROVISIONS

Section 2.1.   Recitals by Company........................................16
Section 2.2.   Ratification and Incorporation of Original Indenture.......16
Section 2.3.   Executed in Counterparts...................................16
Section 2.4.   Separability...............................................16
Section 2.5.   Governing Law..............................................17

Exhibit A      Form of Senior Note........................................A-1

-------------------------
*    This Table of Contents does not constitute part of the Indenture or have
     any bearing upon the interpretation of any of its terms and provisions.

<PAGE>

     THIRD  SUPPLEMENTAL  INDENTURE,  dated  as of June  11,  2002  (the  "Third
Supplemental  Indenture"),  between  AMERICAN  ELECTRIC POWER  COMPANY,  INC., a
corporation  duly organized and existing under the laws of the State of New York
(hereinafter sometimes referred to as the "Company"),  and THE BANK OF NEW YORK,
a New York banking corporation, as trustee (hereinafter sometimes referred to as
the "Trustee"),  under the Indenture dated as of May 1, 2001 between the Company
and  the  Trustee  (the  "Original  Indenture").   The  Original  Indenture,  as
previously  supplemented from time to time, including by this Third Supplemental
Indenture, is hereafter referred to as the "Indenture."

                                   WITNESSETH:

     WHEREAS,  the Company has executed and delivered the Original  Indenture to
the Trustee to provide for the issuance of unsecured  promissory  notes or other
evidences of indebtedness (the "Securities") in an unlimited aggregate principal
amount,  to be issued from time to time in one or more series as provided in the
Original Indenture; and

     WHEREAS,  pursuant  to the terms of the  Original  Indenture,  the  Company
desires to provide for the establishment of a new series of its Securities (said
series  being  hereinafter  referred  to as the  "Senior  Notes"),  the form and
substance of such Senior Notes and the terms,  provisions and conditions thereof
to  be  set  forth  as  provided  in  the  Original  Indenture  and  this  Third
Supplemental Indenture; and

     WHEREAS,  the Company desires and has requested the Trustee to join with it
in the  execution  and delivery of this Third  Supplemental  Indenture,  and all
requirements  necessary  to  make  this  Third  Supplemental  Indenture  a valid
instrument,  in accordance  with its terms,  and to make the Senior Notes,  when
executed by the Company and  authenticated  and  delivered by the  Trustee,  the
valid  obligations of the Company,  have been  performed and fulfilled,  and the
execution and delivery hereof have been in all respects duly authorized;

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

                                     Page 2
<PAGE>

                                  ARTICLE ONE

                GENERAL TERMS AND CONDITIONS OF THE SENIOR NOTES

SECTION 1.1.  Definitions.
--------------------------

     Except  as  otherwise  expressly  provided  in or  pursuant  to this  Third
Supplemental Indenture or unless the context otherwise requires:

          (1) a term defined in the Original Indenture has the same meaning when
     used in this Third Supplemental Indenture;

          (2) a term defined anywhere in this Third  Supplemental  Indenture has
     the same meaning throughout;

          (3) the singular includes the plural and vice versa;

          (4) headings are for  convenience  of reference only and do not affect
     interpretation;

          (5) capitalized  terms used herein for which no definition is provided
     herein shall have the meanings  set forth in the  Original  Indenture,  the
     Forward  Purchase  Contract  Agreement,  the  Remarketing  Agreement or the
     Pledge Agreement, as the case may be and as the context may require; and

          (6) the  following  terms  have  the  meanings  given  to them in this
     Section 1.1(6):

               "Business Day" means any day other than a Saturday, Sunday or any
               other day on which banking  institutions  and trust companies the
               State of New  York or at a place of  payment  are  authorized  or
               required by law, regulation or executive order to be closed.

               "Company" has the meaning set forth in the preamble.

               "Contingent  Payment  Regulations"  has the  meaning set forth in
               Section 1.13.

               "Forward Purchase Contract Agent" means The Bank of New York.

               "Forward Purchase Contract Agreement" means the agreement,  dated
               as of June 11, 2002, between the Company and the Forward Purchase
               Contract Agent.

               "Global Securities" has the meaning set forth in Section 1.5.

               "Interest Payment Date" has the meaning set forth in Section 1.3.

               "Pledge  Agreement" means the Pledge Agreement,  dated as of June
               11,  2002,  between  the  Company  and The Bank of New  York,  as
               Forward  Purchase  Contract Agent,  Collateral  Agent,  Custodial
               Agent and Securities Intermediary.

               "Regular  Record  Date"  means,  with  respect  to each  Interest
               Payment Date, the close of business on the Business Day preceding
               such  Interest  Payment  Date;  provided,  that with  respect  to
               Separate Notes that are not in book-entry  only form, the Regular
               Record Date shall be the close of  business on the 15th  Business
               Day preceding such Interest Payment Date.

<PAGE>

               "Remarketing" means any remarketing  conducted pursuant to and in
               accordance with the Remarketing Agreement.

               "Remarketing Agreement" means the Remarketing Agreement, dated as
               of June 11, 2002, by and among the Company, the Remarketing Agent
               and the Forward Purchase Contract Agent.

               "Remarketing Value" means

               (i)  the  value  at  the  Remarketing   Date  or  any  Subsequent
                    Remarketing  Date,  as the case may be, of  either  (a) U.S.
                    Treasury  securities  that  will  pay,  on or  prior  to the
                    Payment Date falling on the Stock  Purchase  Date, an amount
                    of cash  equal to the  aggregate  interest  payment  that is
                    scheduled  to be payable on that  Payment  Date,  on (x) the
                    Notes   which  are   included   in  Equity   Units  and  are
                    participating  in the remarketing and (y) the Separate Notes
                    which are to be remarketed pursuant to Section 4.5(d) of the
                    Pledge  Agreement,   assuming  for  that  purpose  that  the
                    interest  rate on the Notes is equal to the Coupon Rate,  if
                    the  Remarketing  occurs  prior to the fourth  Business  Day
                    preceding the Stock  Purchase Date, or (b) an amount of cash
                    equal to the aggregate interest payment that is scheduled to
                    be payable on that Payment  Date, on (x) the Notes which are
                    included  in  Equity  Units  and  are  participating  in the
                    remarketing  and  (y) the  Separate  Notes  which  are to be
                    remarketed   pursuant  to  Section   4.5(d)  of  the  Pledge
                    Agreement  and  Section  1.6  of  this  Third   Supplemental
                    Indenture,  assuming for that purpose that the interest rate
                    on the Notes is equal to the Coupon Rate, if the Remarketing
                    occurs on or after the fourth  Business  Day  preceding  the
                    Stock Purchase Date; and

               (ii) the  value  at  the  Remarketing   Date  or  any  Subsequent
                    Remarketing  Date,  as the case may be, of  either  (a) U.S.
                    Treasury  securities that will pay, on or prior to the Stock
                    Purchase  Date, an amount of cash equal to the Stated Amount
                    of (x) such Notes which are included in Equity Units and are
                    participating  in the remarketing and (y) the Separate Notes
                    which are to be remarketed pursuant to Section 4.5(d) of the
                    Pledge  Agreement,  if the  Remarketing  occurs prior to the
                    fourth  Business Day preceding the Stock  Purchase  Date, or
                    (b) an amount of cash equal to the Stated Amount of (x) such
                    Notes   which  are   included   in  Equity   Units  and  are
                    participating  in the remarketing and (y) the Separate Notes
                    which are to be remarketed pursuant to Section 4.5(d) of the
                    Pledge Agreement and Section 1.6 of this Third  Supplemental
                    Indenture,  if the Remarketing occurs on or after the fourth
                    Business Day preceding the Stock Purchase Date

               provided  that for  purposes  of clauses  (1) and (2) above,  the
               Remarketing Value shall be calculated on the assumptions that (x)
               the U.S.  Treasury  securities are highly liquid and mature on or
               within 35 days prior to the Stock Purchase Date, as determined in
               good  faith by the  Remarketing  Agent in a  manner  intended  to
               minimize the cash value of the U.S. Treasury securities,  and (y)
               the U.S.  Treasury  securities  are valued  based on the ask-side
               price of the U.S. Treasury securities at a time between 9:00 a.m.
               and 11:00 a.m., New York City time,  selected by the  Remarketing
               Agent,  on the  Remarketing  Date or any  Subsequent  Remarketing
               Date, as the case may be, as determined on a third-day settlement
               basis by reasonable and customary means selected in good faith by
               the Remarketing Agent, plus accrued interest to that date.

<PAGE>

               "Reset  Rate" means the  interest  rate per annum with respect to
               the Senior  Notes that is  determined  by the  Remarketing  Agent
               pursuant to the Remarketing Agreement as follows:

               (i)  in  connection  with a successful  Remarketing,  the rate of
                    interest  that,  in the  opinion of the  Remarketing  Agent,
                    will, when applied to the Outstanding  Senior Notes,  enable
                    the then current  aggregate market value of the Senior Notes
                    to have a value equal to  approximately,  but not less than,
                    100.25% of the Remarketing  Value as of the Remarketing Date
                    or as of any  Subsequent  Remarketing  Date, as the case may
                    be; or

               (ii) upon the  occurrence  of a Failed  Remarketing,  the rate of
                    interest  applicable to the Senior Notes initially until (A)
                    the Senior Notes are successfully remarketed pursuant to the
                    Forward  Purchase  Contract  Agreement  and the  Remarketing
                    Agreement or (B) if the Last Failed  Remarketing  shall have
                    occurred,  a  market  rate  of  interest  as  determined  in
                    accordance with Section 1.6 of this Supplemental Indenture.

               "Senior Notes" has the meaning set forth in the recitals.

               "Stated Maturity" means August 16, 2007.

               "Telerate" means the Dow Jones Telerate Service.

               "Tax Event  Redemption Date" has the meaning set forth in Section
               1.11.

SECTION 1.2.  Establishment, Designation and Principal Amount.
--------------------------------------------------------------

     (a) There shall be and is hereby  authorized a series of  Securities  under
the Original Indenture  designated the "5.75% Senior Notes Due August 16, 2007,"
in the initial aggregate principal amount of $300,000,000, which amount shall be
as set forth in the Company  Order for the  authentication  and  delivery of the
Senior Notes pursuant to Section 2.04 of the Original Indenture.  Such aggregate
principal  amount of the 5.75% Senior Notes Due August 16, 2007 may be increased
from time to time in accordance with Section 2.01 of the Original Indenture.

     (b) The  Senior  Notes  shall  mature  and the  principal  shall be due and
payable  together  with all  accrued and unpaid  interest  thereon on August 16,
2007.

     (c) The Senior  Notes that are part of the Equity  Units shall be issued in
definitive fully registered form (the "Registered Securities"), without coupons,
in  substantially  the form set out in Exhibit A hereto.  The  entire  principal
amount  of the  Senior  Notes  shall  initially  be  evidenced  by  one or  more
certificates  issued to The Bank of New York, as the Forward  Purchase  Contract
Agent under the Forward Purchase Contract Agreement (as defined below).

     (d) The Senior Notes that, in accordance with the Forward Purchase Contract
Agreement,  are no longer part of Equity Units shall be represented initially by
Global Securities (as defined below).  Each such Registered  Security and Global
Security  shall  represent such aggregate  principal  amount of the  Outstanding
Senior Notes as shall be from time to time  endorsed  thereon,  which  principal
amounts may be increased or decreased, as applicable,  to reflect Transfers from
Pledged  Notes to Separate  Notes and Transfers  from Separate  Notes to Pledged
Notes.  Any such increase or decrease in the aggregate  principal  amount of (i)
Registered  Securities  shall be made by the  Collateral  Agent and (ii)  Global
Securities  representing Senior Notes shall be made by the Trustee, as custodian
of the Global  Securities,  in each case upon the instructions of the Collateral
Agent given pursuant to Article IV of the Pledge Agreement.

<PAGE>

SECTION 1.3. Payment of Principal and Interest.
-----------------------------------------------

     (a) The unpaid  principal  amount of the Senior Notes shall  initially bear
interest at the rate of 5.75% per annum,  payable on each  February  16, May 16,
August 16 and November 16 (each,  with respect to the Senior Notes, an "Interest
Payment  Date"),  from the original  date of issuance,  to, but  excluding,  the
earlier of (i) the settlement date of a successful Remarketing under the Forward
Purchase Contract Agreement or (ii) the Stock Purchase Date, and, thereafter, at
the Reset Rate to, but excluding, the Stated Maturity of the Senior Notes.

     (b) Interest shall be payable quarterly in arrears on each Interest Payment
Date to the Person in whose name the Senior Notes are  registered on the Regular
Record Date for such Interest  Payment Date;  provided that interest  payable on
the Stated  Maturity of principal as provided herein shall be paid to the person
to whom  principal is payable.  Any such  interest not  punctually  paid or duly
provided for with respect to any Interest  Payment Date falling  after the Stock
Purchase Date shall forthwith  cease to be payable to the registered  holders on
such regular record date, and may be paid to the person or persons in whose name
the Senior  Notes are  registered  at the close of business on a special  record
date to be fixed by the  Trustee  for the  payment of such  defaulted  interest,
notice whereof shall be given to the registered  holders of the Senior Notes not
less than ten (10) days prior to such special record date, or may be paid at any
time in any other lawful manner not  inconsistent  with the  requirements of any
securities  exchange,  if any, on which the Senior Notes may be listed, and upon
such notice as may be required by such  exchange,  all as more fully provided in
Section 2.03 of the Original Indenture.

     (c) The amount of interest  payable for any period will be computed (1) for
any quarterly  period,  on the basis of a 360-day year of twelve 30-day  months,
(2) for any  period  shorter  than a full  quarterly  period,  on the basis of a
30-day  month  and (3) for  periods  of less  than a month,  on the basis of the
actual number of days elapsed per 30-day month.  If any date on which  principal
or interest  is payable is not a Business  Day,  then  payment of  principal  or
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.

     (d) Payment of the  principal  of and interest on the Senior Notes shall be
made at an Office or Agency of the  Company or at the Office of the Agent in The
City of New York in such coin or currency of the United  States of America as at
the time of payment is legal  tender for  payment of public and  private  debts,
with any such  payment  that is due on the Stated  Maturity of any Senior  Notes
being made upon  surrender  of such Senior  Notes to the Office or Agency of the
Company  or at the  Office  of the Agent in The City of New  York.  Payments  of
interest will be made, subject to such surrender where applicable, at the option
of the  Company,  (i) by check  mailed to the  address  of the  person  entitled
thereto as such address  shall  appear in the Security  Register or (ii) by wire
transfer  at such  place and to such  account  at a banking  institution  in the
United  States as may be  designated  in writing to the Trustee at least sixteen
(16) days prior to the date for payment by the Person entitled hereto.

SECTION 1.4. Denominations.
---------------------------

     The  Senior  Notes  shall be issued in  denominations  of $50 and  integral
multiples of $50.

<PAGE>

SECTION 1.5. Global Securities.
-------------------------------

     (a) The Senior Notes that, in accordance with the Forward Purchase Contract
Agreement,  are no longer part of the Equity  Units will be issued  initially in
the form of one or more global securities (the "Global  Securities")  registered
in the  name of DTC or its  nominee.  Except  under  the  limited  circumstances
described below or in Section 1.3 above, Senior Notes represented by such Global
Securities will not be exchangeable  for, and will not otherwise be issuable as,
Senior Notes in definitive form. The Global  Securities  described above may not
be  transferred  except by DTC to a nominee of DTC or by a nominee of DTC to DTC
or another nominee of DTC or to a successor Depository or its nominee.

     (b) Owners of  beneficial  interests in such a Global  Security will not be
considered  the  Holders  thereof for any purpose  under the  Indenture,  and no
Global  Security  representing a Senior Note shall be  exchangeable,  except for
another Global Security of like  denomination  and tenor to be registered in the
name of DTC or its nominee or to a successor Depository or its nominee or except
as  described  below.  The rights of owners of  beneficial  interests  in such a
Global Security shall be exercised only through DTC.

     (c) A Global Security shall be exchangeable  for Senior Notes registered in
the names of persons  other than DTC or its nominee only if (i) DTC notifies the
Company  that it is  unwilling  or unable to continue as a  Depository  for such
Global  Security and no successor  Depository  shall have been  appointed by the
Company within 90 days of receipt by the Company of such notification,  or if at
any time DTC  ceases to be a clearing  agency  registered  under the  Securities
Exchange Act of 1934 at a time when DTC is required to be so  registered  to act
as such Depository and no successor  Depository shall have been appointed by the
Company  within 90 days after it becomes  aware of such  cessation,  or (ii) the
Company in its sole discretion  determines that it no longer has any senior debt
securities  represented  by global  securities  or that it will  permit a Global
Security  to be  exchangeable  or an Event of Default  under the  Indenture  has
occurred and is continuing. Any Global Security that is exchangeable pursuant to
the preceding sentence shall be exchangeable for Senior Notes registered in such
names as DTC shall direct.

SECTION 1.6. Remarketing.
-------------------------

     (a) The Pledged  Notes  comprising  part of Equity  Units and the  Separate
Notes of  holders of  Separate  Notes that have  elected to  participate  in the
Remarketing  shall be remarketed  by the  Remarketing  Agent on the  Remarketing
Date. A Holder of Equity Units may elect not to participate in a Remarketing and
retain the Senior Notes  underlying  such Equity Units by notifying  the Forward
Purchase  Contract Agent of such election and  delivering  the Opt-out  Treasury
Consideration to the Forward  Purchase  Contract Agent not later than 10:00 a.m.
on the fourth Business Day prior to the Remarketing  Date, as applicable (or, in
the case of a Failed  Remarketing,  not later  than  10:00  a.m.  on the  fourth
Business Day  immediately  prior to the  subsequent  Remarketing  Period).  Upon
receipt thereof by the Forward  Purchase  Contract Agent,  the Forward  Purchase
Contract  Agent  shall  deliver  such  Opt-out  Treasury  Consideration  to  the
Collateral  Agent,  which will, for the benefit of the Company,  thereupon apply
such Opt-out Treasury  Consideration to secure such Holder's  obligations  under
the Forward Purchase Contracts.  On the first Business Day immediately preceding
the Remarketing  Date (or, in the case of a Failed  Remarketing,  the subsequent
Remarketing Period),  the Collateral Agent,  pursuant to the terms of the Pledge
Agreement,  will  deliver the Pledged  Notes to the  Forward  Purchase  Contract
Agent.  Within three Business Days following any  Remarketing  Period (A) if the
Remarketing was successful, the Forward Purchase Contract Agent shall distribute
such Notes to the new Holders thereof and (B) if there was a Failed Remarketing,
the Forward  Purchase  Contract  Agent will deliver such Notes to the Collateral
Agent,  which will, for the benefit of the Company,  thereupon  apply such Notes
that are a component of Equity Units to secure such Holders'  obligations  under
the  Forward  Purchase  Contracts,  return any  Opt-out  Treasury  Consideration
delivered by such  Holders to such Holders and return the Separate  Notes to the
holders  thereof.  A  Holder  that  does not so  deliver  the  Opt-out  Treasury
Consideration  or has not settled the related  Purchase  Contract through a Cash
Settlement  or an  Early  Settlement  pursuant  to  Sections  5.4 and 5.9 of the
Forward  Purchase  Contract  Agreement  shall  be  deemed  to  have  elected  to
participate in the Remarketing.

<PAGE>

     (b) On the seventh  Business Day prior to the Remarketing Date or the first
day of any  subsequent  Remarketing  Period,  the Company  shall give Holders of
Equity  Units and  Holders of Separate  Notes  notice of the  Remarketing  in an
Authorized   Newspaper,   including  the  specific  U.S.  Treasury  security  or
securities  (including  the CUSIP  number  and/or  the  principal  terms of such
Treasury  security or  securities)  that must be  delivered by Holders of Equity
Units that  elect not to  participate  in the  Remarketing  pursuant  to Section
5.4(g) of the Forward Purchase Contract Agreement, no later than 10:00 a.m. (New
York City time) on the seventh Business Day preceding the Remarketing  Date. Not
later than seven nor more than 15 calendar days prior to any Remarketing Period,
the Company  shall  request DTC (or any  successor  Clearing  Agency) to notify,
directly or indirectly,  each Beneficial  Owner or Clearing  Agency  Participant
holding Equity Units or Stripped Units and each  Beneficial  Owner of a Separate
Note  of  the  Remarketing  and of the  procedures  that  must  be  followed  in
connection with the Remarketing.

     (c) The Forward  Purchase  Contract Agent shall notify,  by 10:00 a.m., New
York City time, on the third Business Date preceding the Remarketing Date or the
first day of any subsequent  Remarketing Period, as applicable,  the Remarketing
Agent and the Collateral Agent of the aggregate number of Senior Notes of Equity
Units Holders to be remarketed.  On the third Business Day immediately preceding
the Remarketing Date or the first day of any subsequent  Remarketing  Period, as
applicable,  no later than by 10:00 a.m.  New York City  time,  pursuant  to the
terms of the Pledge  Agreement,  the Custodial Agent will notify the Remarketing
Agent of the aggregate  number of Separate Notes to be remarketed.  On the third
Business Day immediately  preceding the Remarketing Date or the first day of any
subsequent  Remarketing  Period,  as applicable,  the  Collateral  Agent and the
Custodial Agent, pursuant to the terms of the Pledge Agreement, will deliver for
Remarketing to the Remarketing Agent all Notes to be remarketed. Upon receipt of
such notice from the Forward Purchase Contract Agent and the Custodial Agent and
such Notes from the Collateral  Agent and the Custodial  Agent,  the Remarketing
Agent will,  on the  Remarketing  Date,  use its  commercially  reasonable  best
efforts to establish a Reset Rate  pursuant to clause (i) of the  definition  of
Reset Rate and remarket such Senior Notes pursuant to the Remarketing procedures
in the Remarketing Agreement.

     (d) The  right of each  Holder  of Senior  Notes to have its  Senior  Notes
tendered  for  purchase  will be limited to the extent that (i) the  Remarketing
Agent conducts a Remarketing pursuant to the terms of the Remarketing Agreement,
(ii) the  Remarketing  Agent is able to find a purchaser or  purchasers  for the
tendered  Senior  Notes and (iii)  such  purchaser  or  purchasers  deliver  the
purchase price therefor to the Remarketing Agent.

     (e) Upon receipt of the notice  provided  above in  paragraph  (c) from the
Forward Purchase  Contract Agent and the Custodial Agent and such Notes from the
Collateral  Agent and the Custodial  Agent,  the Remarketing  Agent will, on the
Remarketing Date, use its commercially  reasonable best efforts to (i) establish
a rate of interest that, in the opinion of the  Remarketing  Agent,  will,  when
applied to the outstanding Notes, enable the then current aggregate market value
of the Notes to have a value equal to approximately,  but not less than, 100.25%
of the  Remarketing  Value as of the  Remarketing  Date or as of any  Subsequent
Remarketing Date, as the case may be (the "Reset Rate") and (ii) sell such Notes
on such date at a price equal to  approximately,  but not less than,  100.25% of
the Remarketing Value.

<PAGE>

     (f) If, in spite of using its  commercially  reasonable  best efforts,  the
Remarketing  Agent  cannot  establish  the  Reset  Rate and  remarket  the Notes
included  in the  remarketing  at a price equal to  approximately,  but not less
than, 100.25% of the Remarketing Value, the Remarketing Agent will again attempt
to establish the Reset Rate and remarket the Notes  included in the  remarketing
at a price equal to approximately, but not less than, 100.25% of the Remarketing
Value on each of the two immediately following Business Days. If the Remarketing
Agent cannot  remarket the Notes included in the remarketing at a price equal to
approximately,  but not less than,  100.25% of the  Remarketing  Value on any of
those days,  it will attempt to establish  the Reset Rate and remarket the Notes
included  in the  remarketing  at a price equal to  approximately,  but not less
than,  100.25%  of the  Remarketing  Value on each of the  three  Business  Days
immediately  preceding June 16, 2005. If the  Remarketing  Agent cannot remarket
the Notes included in the remarketing at a price equal to approximately, but not
less  than,  100.25%  of the  Remarketing  Value on any of those  days,  it will
attempt to  establish  the Reset Rate and  remarket  the Notes  included  in the
remarketing at a price equal to approximately, but not less than, 100.25% of the
Remarketing Value on each of the three Business Days immediately  preceding July
16, 2005. If the Remarketing  Agent cannot establish the Reset Rate and remarket
the Notes included in the remarketing at a price equal to approximately, but not
less than,  100.25% of the  Remarketing  Value either on any of the two Business
Days immediately  following the Remarketing Date or on any of the three Business
Days  immediately  preceding  June 16, 2005 or on any of the three Business Days
immediately  preceding  July 16, 2005,  the  remarketing  in each period will be
deemed to have failed (each, a "Failed  Remarketing").  If the Remarketing Agent
cannot  establish  the  Reset  Rate  and  remarket  the  Notes  included  in the
remarketing at a price equal to approximately, but not less than, 100.25% of the
Remarketing  Value on any of the three Business Days immediately  preceding July
16, 2005, the Remarketing Agent will further attempt to establish the Reset Rate
and  remarket  the  Notes  included  in the  remarketing  at a  price  equal  to
approximately,  but not less than,  100.25% of the Remarketing  Value on each of
the three Business Days  immediately  preceding August 12, 2005. If, in spite of
using its commercially  reasonable best efforts,  the Remarketing Agent fails to
remarket   the  Notes   underlying   the  Equity  Units  at  a  price  equal  to
approximately, but not less than, 100.25% of the Remarketing Value in accordance
with the terms of the Pledge  Agreement by 4:00 p.m., New York City time, on the
third Business Day immediately preceding the Stock Purchase Date, a "Last Failed
Remarketing" will be deemed to have occurred.

     (g) If a successful  Remarketing  shall have  occurred  prior to the fourth
Business Day preceding the Stock Purchase Date, the  Remarketing  Agent will, in
accordance  with the Forward  Purchase  Contract  Agreement and the  Remarketing
Agreement:

          (i)  deduct and retain for itself the Remarketing Fee;

          (ii) use the proceeds from such successful Remarketing to purchase the
               Agent-purchased Treasury Consideration with the CUSIP numbers, if
               any, selected by the Remarketing Agent,  described in clauses (1)
               and (2) of the  definition  of  Remarketing  Value related to the
               Senior Notes of Holders of Equity Units that were remarketed;

          (iii)if any Separate  Notes were  remarketed,  remit to the Collateral
               Agent for payment to the Holders of such  Separate  Notes sold in
               the  Remarketing  the  remaining  proceeds  from such  successful
               Remarketing attributable to the Separate Notes; and

<PAGE>

          (iv) if there remain any proceeds  from such  successful  Remarketing,
               after the  application  of such  proceeds as set forth in clauses
               (i) through  (iii) of this  sentence,  then remit such  remaining
               proceeds to the Forward  Purchase  Contract  Agent for payment to
               the Holders of the Equity  Units that were  remarketed,  on a pro
               rata basis, in accordance with the Remarketing Agreement.

     (h) In the case of a successful  Remarketing  occurring prior to the fourth
Business  Day  preceding  the  Stock  Purchase  Date,  on or prior to the  third
Business Day following the Remarketing Date or any Subsequent  Remarketing Date,
the Remarketing Agent shall deliver such Agent-purchased  Treasury Consideration
to the Forward  Purchase  Contract  Agent,  which shall  thereupon  deliver such
Agent-purchased  Treasury  Consideration to the Collateral Agent. The Collateral
Agent, for the benefit of the Company, will thereupon apply such Agent-purchased
Treasury Consideration,  in accordance with the Pledge Agreement, to secure such
Holders' obligations under the Forward Purchase Contracts.

     (i) If a successful  Remarketing shall have occurred on or after the fourth
Business Day preceding the Stock Purchase Date, the  Remarketing  Agent will, in
accordance  with the Forward  Purchase  Contract  Agreement and the  Remarketing
Agreement:

          (i)  deduct and retain for itself the Remarketing Fee;

          (ii) pay the proceeds from such successful  Remarketing to the Forward
               Purchase  Contract  Agent,  which shall  thereupon  deliver  such
               proceeds to the  Collateral  Agent which,  for the benefit of the
               Company,  will thereupon apply such proceeds,  in accordance with
               the  Pledge  Agreement  in  direct  settlement  of  the  Holders'
               obligations under the Forward Purchase Contracts;

          (iii)if any Separate  Notes were  remarketed,  remit to the Collateral
               Agent for payment to the Holders of such  Separate  Notes sold in
               the  Remarketing  the  remaining  proceeds  from such  successful
               Remarketing attributable to the Separate Notes; and

          (iv) if there remain any proceeds  from such  successful  Remarketing,
               after the  application  of such  proceeds as set forth in clauses
               (i) through  (iii) of this  sentence,  then remit such  remaining
               proceeds to the Forward  Purchase  Contract  Agent for payment to
               the Holders of the Equity  Units that were  remarketed,  on a pro
               rata basis, in accordance with the Remarketing Agreement.

     (j) If a successful  Remarketing  occurs,  by approximately  4:30 p.m. (New
York City time) on the Remarketing  Date, the Remarketing Agent shall advise, by
telephone (promptly confirmed in writing in the case of clause (i)):

          (i)  the Company,  the Forward Purchase Contract Agent, the Collateral
               Agent,  the Securities  Intermediary,  DTC and the Trustee of the
               Reset Rate determined in the Remarketing;

          (ii) each purchaser (or the Depository  Participant thereof) of Senior
               Notes in the  Remarketing  of the  Reset  Rate and the  number of
               Senior Notes such purchaser is to purchase; and

          (iii)each   purchaser   to  give   instructions   to  its   Depository
               Participant  to pay the purchase  price on the date of settlement
               for such  Remarketing  in same day funds against  delivery of the
               remarketed Senior Notes purchased through the facilities of DTC.

<PAGE>

     (k) Any  distribution to Holders of excess funds and interest  described in
this  Section 1.6 shall be payable at the Office of the Agent in The City of New
York  maintained  for that purpose or, at the option of the Holder or the holder
of Separate Notes,  as applicable,  by check mailed to the address of the Person
entitled  thereto at such address as it appears on the  relevant  Register or by
wire  transfer to an account  specified  by the Holder or the holder of Separate
Notes, as applicable.

     (l) If a Failed Remarketing  occurs, the Remarketing Agent and the Company,
as applicable, shall take the following actions:

          (i)  the Remarketing Agent shall notify by telephone the Company,  the
               Forward  Purchase  Contract Agent,  the Collateral  Agent and the
               Trustee,  that a Failed  Remarketing has occurred,  whereupon the
               Company shall notify the Clearing  Agency,  by telephone,  that a
               Failed Remarketing has occurred;

          (ii) with respect to any Remarketing Period during which no successful
               Remarketing  occurred,  the Company shall publish notice by means
               of Bloomberg and Reuters  newswires,  such notice to be published
               no later than the fourth  Business Day  following the end of such
               Remarketing Period;

          (iii)the   Remarketing   Agent  shall  determine  the  Reset  Rate  in
               accordance with clause (ii) of the Reset Rate definition; and

          (iv) the  Remarketing  Agent shall remit,  within three  Business Days
               following  the end of a  Remarketing  Period which  constituted a
               Failed Remarketing,  the Pledged Notes that were to be remarketed
               to the  Collateral  Agent and the Separate  Notes that were to be
               remarketed to the Custodial Agent.

     (m) If upon a Last Failed  Remarketing,  the Collateral  Agent delivers any
Senior  Notes to the Company in full  satisfaction  of the  Holder's  obligation
under the  related  Forward  Purchase  Contracts,  any  accumulated  and  unpaid
interest  on such  Notes will  become  payable  by the  Company  to the  Forward
Purchase  Contract  Agent for payment to the Holder of the Equity Units to which
such Notes relate. Such payment will be made by the Company on or prior to 11:00
a.m.,  New York City time,  on the Stock  Purchase  Date in lawful  money of the
United States by certified or cashier's  check or wire  transfer in  immediately
available  funds payable to or upon the order of the Forward  Purchase  Contract
Agent. Upon the occurrence of a Last Failed Remarketing, the Company will retain
and dispose of the Pledged Notes of all Holders in  satisfaction of the Holders'
obligations  under the related  Forward  Purchase  Contracts.  The Company  will
publish  notice by means of Bloomberg and Reuters  newswires of any  Remarketing
Period  during  which no  successful  Remarketing  occurred,  such  notice to be
published  not later  than the fourth  Business  Day  following  the end of such
Remarketing  Period.  The  Company  will  cause  a  notice  of the  Last  Failed
Remarketing to be published on the fourth Business Day following the date of the
Last Failed Remarketing in an Authorized Newspaper.

     (n) In the event of a Last Failed Remarketing,  the Remarketing Agent shall
determine  the Reset  Rate that  shall  apply to the  Senior  Notes  held by the
Holders of Equity Units that elected not to participate in the  remarketing  and
Holders of Separate Notes according to the following method, provided that in no
event shall the Reset Rate exceed the maximum rate permitted by state usury laws
and other applicable laws.  After the Last Failed  Remarketing,  the Remarketing
Agent  will  take  the  average  of the  interest  rates  quoted  to it by three
nationally  recognized  investment  banks  selected  by the  Company,  which are
underwriters or dealers in debt securities  similar to the Senior Notes, that in
their judgment  reflects an accurate  market rate of interest  applicable to the
Senior Notes at that time.  Following  receipt of these quotes,  the Remarketing
Agent will have the  right,  in its sole  judgment,  to either  recalculate  the
average  based  on only two of the  quoted  interest  rates if one of the  three
quotes,  in the  Remarketing  Agent's sole  discretion,  did not reflect  market
conditions or,  alternatively,  determine a consensus among the investment banks
rather than a strict  mathematical  average by taking into  account all relevant
qualitative and quantitative  factors.  These factors may include, but shall not
limited to,  maturity of the Senior Notes,  the credit rating and credit risk of
the Company and companies of similar  industries,  the then yield to maturity of
the Senior Notes and the state of the markets for primary and secondary sales of
similar debt securities.

<PAGE>

     (o) In accordance with DTC's normal  procedures,  on the date of settlement
of such Remarketing or the Stock Purchase Date, as applicable,  the transactions
described above with respect to each Senior Notes  remarketed in the Remarketing
shall be executed  through DTC, and the  accounts of the  respective  Depository
Participants  shall be debited and  credited  and such  remarketed  Senior Notes
delivered  by book  entry as  necessary  to effect  purchases  and sales of such
remarketed  Senior Notes.  DTC shall make payment in accordance  with its normal
procedures.

     (p) If any Holder of Senior Notes selling  Senior Notes in the  Remarketing
fails  to  deliver  such  Senior  Notes,  the  direct  or  indirect   Depository
Participant  of such  selling  Holder  and of any other  Person  who was to have
purchased  Senior Notes in the  Remarketing may deliver to any such other Person
an aggregate  principal  amount of Senior Notes that is less than the  aggregate
principal  amount of Senior  Notes that  otherwise  was to be  purchased by such
Person.  In such event, the aggregate  principal amount of Senior Notes to be so
delivered shall be determined by such direct or indirect Depository Participant,
and  delivery of such lesser  aggregate  principal  amount of Senior Notes shall
constitute good delivery.

     (q) The  Remarketing  Agent is not  obligated  to purchase any Senior Notes
that otherwise would remain unsold in the  Remarketing.  Neither the Company nor
the  Remarketing  Agent shall be obligated in any case to provide  funds to make
payment upon tender of the Senior Notes for Remarketing.

     (r) Under the Remarketing Agreement, the Company, in its capacity as issuer
of the Senior  Notes,  shall be liable for, and shall pay, any and all costs and
expenses incurred in connection with the Remarketing, other than the Remarketing
Fee.

     (s) The settlement  procedures set forth herein,  including  provisions for
payment by purchasers of the remarketed  Senior Notes in the Remarketing,  shall
be subject to  modification  to the extent  required by DTC or if the book-entry
system is no longer available for the remarketed Senior Notes at the time of the
Remarketing,  to facilitate the  Remarketing  of the remarketed  Senior Notes in
certificated  form,  and shall  provide for the  authentication  and delivery of
Senior  Notes in a principal  amount equal to the  unremarketed  portion of such
Senior  Notes.  In addition,  the  Remarketing  Agent may modify the  settlement
procedures set forth herein in order to facilitate the settlement process.

SECTION 1.7. Optional Remarketing.
----------------------------------

     (a) On or prior to the fourth Business Day immediately preceding either the
Remarketing Date or if applicable,  the first day of any subsequent  Remarketing
Period, but no earlier than the Interest Payment Date immediately  preceding the
last Interest  Payment Date before the Stock Purchase Date,  holders of Separate
Notes may elect to have their Separate Notes  remarketed by  Transferring  their
Separate Notes and delivering a notice of such  election,  substantially  in the
form of Exhibit C to the Pledge Agreement, to the Collateral Agent. On the third
Business Day immediately  prior to the Remarketing  Date or the first day of any
subsequent Remarketing Period, by 10:00 a.m., New York City time, the Collateral
Agent shall notify the Remarketing Agent of the number of such Separate Notes to
be remarketed.  The Collateral Agent will hold such Separate Notes in an account
separate from the  Collateral  Account.  A holder of Separate  Notes electing to
have its Separate  Notes  remarketed  will also have the right to withdraw  such
election by written notice to the Collateral Agent, substantially in the form of
Exhibit  D to the  Pledge  Agreement,  on or prior to the  fourth  Business  Day
immediately  preceding  the  applicable  Remarketing  Date or the first day of a
subsequent  Remarketing  Period,  upon which  notice the  Collateral  Agent will
return such Separate Notes to such holder.

<PAGE>

     (b) On the third Business Day immediately preceding the Remarketing Date or
the first day of any subsequent  Remarketing Period, the Collateral Agent at the
written direction of the Remarketing Agent will deliver to the Remarketing Agent
for Remarketing all Separate Notes delivered to the Collateral Agent pursuant to
Section 4.5(d) of the Pledge  Agreement and not withdrawn  pursuant to the terms
thereof  prior to such date. If the holder of the Separate  Notes  delivers only
such notice but not the Separate Notes subject to such notice, then none of such
holder's Separate Notes shall be included in the Remarketing. Once the holder of
Separate  Notes elects to participate  in the  Remarketing,  such Separate Notes
will be remarketed in the Remarketing, unless such notice is properly withdrawn.
In accordance with Section 4.5(d) of the Pledge  Agreement,  upon the occurrence
of a Failed  Remarketing,  the  Remarketing  Agent  will  promptly  return  such
Separate  Notes to the  Collateral  Agent for redelivery to such holders of such
Separate Notes.

SECTION 1.8. Sinking Fund.
--------------------------

     The Senior Notes shall not be entitled to any sinking fund.

SECTION 1.9. Redemption and Repurchase.
---------------------------------------

     Except  as  provided  in  Section  1.12,  the  Senior  Notes  shall  not be
redeemable prior to their Stated Maturity.

SECTION 1.10. Covenants.
------------------------

     (a) For so long as any Senior Notes of this series remain outstanding,  the
Company will not create or incur or allow any of its  subsidiaries  to create or
incur any pledge or security  interest  on any of the capital  stock of a Public
Utility  Subsidiary  held  by  the  Company  or one  of  its  subsidiaries  or a
Significant Subsidiary.

     For purposes of this covenant:

     (i)  Public Utility  Subsidiary  means, at any particular time, a direct or
          indirect  subsidiary of the Company that, as a substantial part of its
          business,  distributes  or  transmits  electric  energy  to  retail or
          wholesale customers at rates or tariffs that are regulated by either a
          state or Federal  regulatory  authority.

     (ii) Significant  Subsidiary  means,  at any  particular  time,  any direct
          subsidiary  of  the  Company  whose   consolidated   gross  assets  or
          consolidated  gross revenues  (having  regard to the Company's  direct
          beneficial  interest in the shares,  or the like, of that  subsidiary)
          represent at least 25% of the Company's  consolidated  gross assets or
          consolidated  gross  revenues  appearing  in the most  recent  audited
          financial statements of the Company as of the date of determination.

     (b) The  provisions  of  Article  Ten of the  Original  Indenture  shall be
applicable to the Senior Notes.

SECTION 1.11. Defeasance.
-------------------------

     The provisions of Section 11.01 of the Original  Indenture  shall not apply
to the Senior Notes.

<PAGE>

SECTION 1.12. Tax Event Redemption.
-----------------------------------

     (a) If a Tax Event shall occur, the Company may, at its option,  redeem the
Senior  Notes in whole (but not in part) at any time at a price per Senior  Note
equal to the Redemption Price. Installments of interest on the Senior Notes that
are due and  payable  on or prior  to the date of  redemption  (the  "Tax  Event
Redemption  Date") will be payable to the Holders of the Senior Notes registered
as such on the Record Date next  preceding such Tax Event  Redemption  Date. If,
following  the  settlement of the Forward  Purchase  Contracts and following the
occurrence of a Tax Event, the Company, at its option, redeems the Senior Notes,
the  proceeds  of the  redemption  will be payable in cash to the Holders of the
Senior Notes.

     (b) If the  Company  exercises  its  option  to  redeem  the  Senior  Notes
following  the  occurrence of a Tax Event prior to the  Remarketing  Date, or if
there has not been a successful  Remarketing  prior to the Stock  Purchase Date,
the Company  shall in the notice to the Trustee  pursuant to Section 3.02 of the
Original  Indenture  specify the Redemption Price. Upon the specification of the
Redemption Price by the Company,  the Company shall appoint the Collateral Agent
to acquire  the  Treasury  Portfolio  in  consultation  with the  Company and in
accordance with the Forward Purchase  Contract  Agreement.  The Collateral Agent
shall then apply,  out of the  aggregate  Redemption  Price for the Senior Notes
that are components of Equity Units, an amount equal to the aggregate Redemption
Amount for the Senior Notes that are  components  of Equity Units to purchase on
behalf of the Holders of Equity Units the Treasury  Portfolio and promptly remit
the remaining portion, if any, of such aggregate Redemption Price to the Forward
Purchase  Contract  Agent for payment to the Holders of such Equity  Units.  The
Treasury  Portfolio  will be  substituted  for the  Pledged  Notes,  and will be
pledged  to the  Collateral  Agent in  accordance  with the terms of the  Pledge
Agreement to secure the  obligation of each Holder of an Equity Unit to purchase
the Common Stock under the Forward Purchase Contract constituting a part of such
Equity Units. Payment of the Redemption Price to Holders of Separate Notes shall
be made in cash on the Tax Event Redemption Date.

     (c) If a Tax Event  Redemption  occurs  after the  earlier of a  successful
Remarketing or the Stock Purchase Date,  payment of the Redemption Price to each
Holder of Senior  Notes shall be made by the Trustee  (subject to its receipt of
funds),  no  later  than  12:00  noon,  New York  City  time,  on the Tax  Event
Redemption  Date,  by check or wire  transfer  in  immediately  available  funds
(provided the necessary wire  instructions  have been provided to the Trustee at
least 15 days prior to the Tax Event  Redemption Date) at such place and to such
account as may be designated by each such Holder of Senior Notes,  including the
Collateral Agent. If the Trustee holds immediately available funds sufficient to
pay the Redemption Price of the Senior Notes, then, on such Tax Event Redemption
Date, such Senior Notes will cease to be Outstanding.

     (d) The Trustee  shall have no duty or liability to determine or verify the
Redemption  Price.  Notice of any redemption will be mailed at least 30 days but
not more than 60 days before the Tax Event  Redemption  Date to each  registered
Holder of the Senior Notes to be repaid at its  registered  address.  Unless the
Company defaults in payment of the Redemption  Price, on and after the Tax Event
Redemption  Date interest shall cease to accrue on the Senior Notes,  whether or
not such Senior Notes have been received by the Company, and all other rights of
the Holders in respect of the Senior Notes shall terminate and lapse (other than
the right to receive the Redemption Price upon delivery of such Senior Notes but
without interest on such Redemption Price).

SECTION 1.13. Tax Treatment.
----------------------------

     The Company agrees, and by acceptance of a beneficial ownership interest in
the Senior Notes,  each beneficial holder of Senior Notes will be deemed to have
agreed (1) to treat the  acquisition of an Equity Unit as the acquisition of the
Senior Note and the Forward Purchase  Contract  constituting the Equity Unit and
to allocate  the  purchase  price of the Equity Unit between the Senior Note and
the  Forward  Purchase  Contract as $50 and $0,  respectively,  (2) to treat the
Senior Notes as indebtedness  that is subject to Treas.  Reg. Sec. 1.1275-4 (the
"Contingent Payment  Regulations") for United States federal income tax purposes
and (3) to be bound by the Company's determination of the "comparable yield" and
"projected  payment  schedule,"  within the  meaning of the  Contingent  Payment
Regulations,  with respect to the Senior Notes for United States  federal income
tax purposes.  A Holder of Senior Notes may obtain the amount of original  issue
discount, issue date, yield to maturity,  comparable yield and projected payment
schedule by submitting a written  request for it to the Company at the following
address:  American  Electric Power,  Investor  Relations,  One Riverside  Plaza,
Columbus, Ohio 43215.

<PAGE>

                                  ARTICLE TWO

                            MISCELLANEOUS PROVISIONS

SECTION 2.1. Recitals by Company.
---------------------------------

     The recitals in this Third  Supplemental  Indenture are made by the Company
only and not by the Trustee, and all of the provisions contained in the Original
Indenture in respect of the rights, privileges, immunities, powers and duties of
the Trustee shall be applicable in respect of the Senior Notes and of this Third
Supplemental  Indenture  as fully and with like effect as if set forth herein in
full.

SECTION 2.2. Ratification and Incorporation of Original Indenture.
------------------------------------------------------------------

     As supplemented  hereby, the Original Indenture is in all respects ratified
and confirmed,  and the Original Indenture and this Third Supplemental Indenture
shall be read, taken and construed as one and the same instrument.

SECTION 2.3. .Executed in Counterparts.
---------------------------------------

     This Third Supplemental  Indenture may be executed in several counterparts,
each of which shall be deemed to be an  original,  and such  counterparts  shall
together constitute but one and the same instrument.

SECTION 2.4.      Separability.
-------------------------------

     In case any provisions contained in this Third Supplemental Indenture or in
any  Senior  Note shall be  invalid,  illegal or  unenforceable,  the  validity,
legality and enforceability of the remaining  provisions shall not in any way be
affected or impaired thereby.

SECTION 2.5. Governing Law.
---------------------------

     THIS THIRD SUPPLEMENTAL INDENTURE AND EACH SENIOR NOTE SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
AGREEMENTS MADE OR INSTRUMENTS ENTERED INTO AND, IN EACH CASE, PERFORMED IN SAID
STATE.

     IN WITNESS WHEREOF,  the parties hereto have caused this Third Supplemental
Indenture  to be duly  executed,  and  their  respective  corporate  seals to be
hereunto affixed, all as of the day and year first above written.

                             AMERICAN ELECTRIC POWER COMPANY,   INC.

                             By:   /s/ A. A. Pena
                                Name:  A. A. Pena
                                Title: Treasurer

                             THE BANK OF NEW YORK, as Trustee

                             By:      /s/ Terence Rawlins
                                Name:     Terence Rawlins
                                Title:    Vice President

<PAGE>

                                    EXHIBIT A

                               FORM OF SENIOR NOTE

                                 [Face of Note]

[UNLESS  AND  UNTIL IT IS  EXCHANGED  IN  WHOLE  OR IN PART  FOR THE  INDIVIDUAL
SECURITIES  REPRESENTED  HEREBY,  THIS GLOBAL  SECURITY  MAY NOT BE  TRANSFERRED
EXCEPT AS A WHOLE BY THE  DEPOSITORY  TRUST COMPANY OR ANY SUCCESSOR  DEPOSITARY
APPOINTED AS SUCH PURSUANT TO THE INDENTURE (THE  "DEPOSITARY")  TO A NOMINEE OF
THE  DEPOSITARY OR BY A NOMINEE OF THE  DEPOSITARY TO THE  DEPOSITARY OR ANOTHER
NOMINEE OF THE  DEPOSITARY  OR BY THE  DEPOSITARY  OR ANY SUCH NOMINEE TO SUCH A
SUCCESSOR  DEPOSITARY  OR A NOMINEE OF SUCH  SUCCESSOR  DEPOSITARY.  UNLESS THIS
GLOBAL SECURITY IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE DEPOSITARY
TO THE COMPANY OR ITS AGENT FOR  REGISTRATION OR TRANSFER,  EXCHANGE OR PAYMENT,
AND ANY  SECURITY  ISSUED IS  REGISTERED  IN THE NAME OF THE  DEPOSITARY  OR ITS
NOMINEE OR SUCH OTHER NAME AS IS REQUESTED BY AN  AUTHORIZED  REPRESENTATIVE  OF
THE  DEPOSITARY  AND ANY PAYMENT IS MADE TO THE  DEPOSITARY OR ITS NOMINEE,  ANY
TRANSFER,  PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF HAS AN INTEREST HEREIN.]*

CUSIP No.
ISIN No.
No. ___                                                        $_______________

                      AMERICAN ELECTRIC POWER COMPANY, INC.

                     5.75% Senior Notes Due August 16, 2007

     American  Electric  Power Company,  Inc., a corporation  duly organized and
existing  under the laws of New York (the  "Company,"  which term  includes  any
successor  corporation under the Indenture  hereinafter  referred to), for value
received,  hereby  promises to pay to [Cede & Co.]* or registered  assigns,  the
principal sum of _______________________  United States Dollars [, or such other
principal amount as shall be set forth in the Schedule of Increases or Decreases
attached  hereto,]** at the Company's Office or Agency or Office of the Agent in
The City of New York  for said  purpose,  on  August  16,  2007 in such  coin or
currency  of the United  States of  America  as at the time of payment  shall be
legal  tender for the payment of public and private  debts,  and to pay interest
thereon  from June 11, 2002 or from the next most recent date to which  interest
has been paid or duly  provided  for,  quarterly in arrears on each February 16,
May 16,  August 16 and  November 16 of each year (each such date,  an  "Interest
Payment  Date"),  commencing  on August 16, 2002, at the rate of 5.75% per annum
to, but  excluding,  the  earlier  of (i) the  settlement  date of a  successful
Remarketing  under the Forward  Purchase  Contract  Agreement  or (ii) the Stock
Purchase Date, and, thereafter,  at the Reset Rate to, but excluding, the Stated
Maturity.

-----------------------------
*  Insert in Global Securities.
** Insert in Global Securities and Pledged Notes.

     The amount of interest so payable for any period  shall be computed (i) for
any full quarterly period on the basis of a 360-day year of twelve 30-day months
and (ii) for any period shorter than a full quarterly  period, on the basis of a
30-day month and,  for periods of less than a month,  on the basis of the actual
number of days elapsed per 30-day month. In the event that any Interest  Payment
Date is not a Business Day, then payment of the interest or principal payable on
such date will be made on the next succeeding day which is a Business Day and no
interest  shall accrue in respect of the amounts which payment is so delayed for
the period from and after such  interest  payment  date or other  payment  date,
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.

     Payments of the principal of and interest on the Senior Notes shall be made
at said  Office or Agency of the  Company  or at the  Office of the Agent in The
City of New York to which  interest  on the  Senior  Notes has been paid or duly
provided for, until payment of said principal sum has been made or duly provided
for;  provided  that,  unless this Senior Note is a Senior Note issued in global
form  ("Global  Security"),  interest may be paid, at the option of the Company,
(i) by check  mailed to the  address  of the  Person  entitled  thereto  as such
address  shall appear in the Security  Register or (ii) by wire transfer at such
place and to such account at a banking  institution  in the United States as may
be  designated in writing to the Trustee at least sixteen (16) days prior to the
date for payment by the Person entitled  thereto.  The interest so payable,  and
punctually paid or duly provided for, on any Interest  Payment Date, as provided
in the Indenture,  as hereinafter defined,  shall be paid to the Person in whose
name  this  Note  (or  one or  more  Predecessor  Securities)  shall  have  been
registered  at the close of business on the Regular  Record Date with respect to
such  Interest  Payment  Date,  provided  that  interest  payable  on the Stated
Maturity or any redemption date shall be paid to the Person to whom principal is
paid.  Any such  interest  not so  punctually  paid or duly  provided  for shall
forthwith  cease to be  payable to the Holder on such  Regular  Record  Date and
shall be paid as provided in said Indenture.

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

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

<PAGE>

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

Dated: ___________________

                                  AMERICAN ELECTRIC POWER COMPANY, INC.

                                  By: _________________________________
                                      Name:
                                      Title:

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is one of the Securities of the series  designated in accordance with,
and referred to in, the within-mentioned Indenture.

Dated: ___________________

                                   THE BANK OF NEW YORK, as Trustee

                                   By: __________________________
                                       Authorized Signatory

<PAGE>

                                [Reverse of Note]

                      American Electric Power Company, Inc.

                     5.75% Senior Notes Due August 16, 2007

     This Senior Note is one of a duly  authorized  issue of  securities  of the
Company (the "Securities"),  issued and to be issued in one or more series under
an Indenture, dated as of May 1, 2001 (the "Original Indenture"),  as previously
supplemented and as to be supplemented by a third supplemental indenture,  dated
as of June  11,  2002  (the  "Third  Supplemental  Indenture"  and the  Original
Indenture,  as so supplemented,  the  "Indenture"),  between the Company and The
Bank of New York, a New York  banking  corporation,  as trustee (the  "Trustee,"
which term includes any successor trustee under the Indenture), and reference is
hereby  made  to  the  Indenture  for a  statement  of  the  respective  rights,
limitations  of rights,  duties and  immunities  thereunder of the Company,  the
Trustee and the Holders and of the terms upon which the Securities  are, and are
to be,  authenticated  and  delivered.  This  Senior  Note  is  one of a  series
designated as 5.75% Senior Notes Due August 16, 2007 of the Company (hereinafter
called the  "Senior  Notes"),  issued  under the  Original  Indenture,  which is
limited in aggregate principal amount to $300,000,000.

     Neither the  Original  Indenture  nor the Senior  Notes limit or  otherwise
restrict the amount of  indebtedness  which may be incurred or other  securities
which may be issued by the Company.  The Senior Notes issued under the Indenture
are direct,  unsecured  obligations of the Company and will mature on August 16,
2007. The Senior Notes rank on parity with all other  unsecured,  unsubordinated
indebtedness of the Company.

     The Senior Notes will bear  interest as set forth on the face hereof and in
the Third Supplemental  Indenture.  The Reset Rate will be the interest rate per
annum that is determined by the  Remarketing  Agent pursuant to the  Remarketing
Agreement as follows: (i) in connection with a successful Remarketing,  the rate
of interest that will,  when applied to the Outstanding  Notes,  enable the then
current  aggregate  market  value  of  the  Notes  to  have  a  value  equal  to
approximately,  but not less than,  100.25% of the  Remarketing  Value as of the
Remarketing Date or as of any Subsequent  Remarketing  Date, as the case may be,
or (ii)  upon the  occurrence  of a  Failed  Remarketing  the  rate of  interest
applicable  to the  Senior  Notes  initially  until  (A) the  Senior  Notes  are
successfully  remarketed pursuant to the Forward Purchase Contract Agreement and
the  Remarketing  Agreement  or (B) if the Last  Failed  Remarketing  shall have
occurred, in accordance with the method as described below.

     Notwithstanding anything herein to the contrary, the Reset Rate shall in no
event exceed the maximum rate, if any, permitted by applicable law.

     In the event of a Last  Failed  Remarketing,  the  Remarketing  Agent shall
determine  the Reset  Rate that  shall  apply to the  Senior  Notes  held by the
Holders of Equity Units that elected not to participate in the  remarketing  and
Holders of Separate  Notes  according to the  following  method.  After the Last
Failed Remarketing,  the Remarketing Agent will take the average of the interest
rates quoted to it by three nationally  recognized  investment banks selected by
the Company, which are underwriters or dealers in debt securities similar to the
Senior  Notes,  that in their  judgment  reflects  an  accurate  market  rate of
interest applicable to the Senior Notes at that time. Following receipt of these
quotes,  the  Remarketing  Agent will have the right,  in its sole judgment,  to
either recalculate the average based on only two of the quoted interest rates if
one of the three quotes,  in the Remarketing  Agent's sole  discretion,  did not
reflect market  conditions or,  alternatively,  determine a consensus  among the
investment  banks  rather  than a strict  mathematical  average  by taking  into
account all relevant  qualitative and  quantitative  factors.  These factors may
include,  but shall not limited to,  maturity  of the Senior  Notes,  the credit
rating and credit risk of the Company and companies of similar  industries,  the
then yield to  maturity  of the Senior  Notes and the state of the  markets  for
primary and secondary sales of similar debt securities.

<PAGE>

     The Senior Notes are not redeemable  prior to maturity except pursuant to a
Tax Event in accordance with the Third  Supplemental  Indenture.  If a Tax Event
shall occur,  the Company  may, at its option,  redeem the Senior Notes in whole
(but not in part) at any time at a price per Senior Note equal to the Redemption
Price.  Installments of interest on the Senior Notes that are due and payable on
or prior to the date of redemption  will be payable to the Holders of the Senior
Notes  registered  as such at the  close of  business  on the  Record  Date next
preceding such Tax Event  Redemption  Date. If,  following the settlement of the
Forward  Purchase  Contracts and following  the  occurrence of a Tax Event,  the
Company, at its option, redeems the Senior Notes, the proceeds of the redemption
will be payable in cash to the Holders of the Senior Notes.

     The Company agrees, and by acceptance of a beneficial ownership interest in
the Senior Notes,  each beneficial holder of Senior Notes will be deemed to have
agreed (1) for United States  federal,  state and local income and franchise tax
purposes to treat the  acquisition  of an Equity Unit as the  acquisition of the
Senior Note and the Forward Purchase Contract  constituting the Equity Unit, (2)
to treat the Senior Notes as  indebtedness  that is subject to Treas.  Reg. Sec.
1.1275-4 (the "Contingent Payment Regulations") for United States federal income
tax  purposes  and  (3)  to be  bound  by  the  Company's  determination  of the
"comparable  yield" and "projected  payment schedule," within the meaning of the
Contingent  Payment  Regulations,  with  respect to the Senior  Notes for United
States  federal  income tax  purposes.  A Holder of Senior  Notes may obtain the
amount of original issue  discount,  issue date,  yield to maturity,  comparable
yield and projected  payment  schedule by submitting a written request for it to
the  Company  at  the  following  address:  American  Electric  Power,  Investor
Relations, One Riverside Plaza, Columbus, Ohio 43215.

     The Senior Notes are not entitled to any sinking fund.

     The Senior  Notes  that are a  component  of Equity  Units or that so elect
under Section 1.7 of the  Supplemental  Indenture will be subject to Remarketing
and, in the case of a Failed  Remarketing,  the Collateral Agent for the benefit
of the  Company  reserves  all of its rights as a secured  party of the  Pledged
Notes with respect thereto and, subject to applicable law and Section 5.4 of the
Forward Purchase Contract Agreement, may, among other things, permit the Company
to cause the Senior Notes to be sold or to retain and cancel such Senior  Notes,
in either  case,  in full  satisfaction  of the Holders'  obligations  under the
Forward Purchase Contracts.

     If an Event of Default  with respect to the Senior Notes shall occur and be
continuing, the principal of the Senior Notes may be declared due and payable in
the manner and with the effect provided in the Indenture.  The Senior  Indenture
provides that in certain circumstances such declaration and its consequences may
be waived by the  Holders of a majority  in  aggregate  principal  amount of the
Senior Notes then Outstanding. However, any such consent or waiver by the Holder
shall not affect any subsequent default or impair any right consequent thereon.

     The Indenture contains  provisions  permitting the Company and the Trustee,
with the  consent  of the  Holders  of not less  than a  majority  in  aggregate
principal  amount of the Securities of all series affected by such  supplemental
indenture or indentures at the time outstanding  voting as one class, as defined
in the Indenture,  to execute supplemental  indentures for the purpose of adding
any provisions to or changing in any manner or eliminating any of the provisions
of the Indenture or of any supplemental  indenture or of modifying in any manner
the rights of the Holders of the  Securities;  provided,  however,  that no such
supplemental  indenture shall (i) extend the fixed maturity of any Securities of
any series, or reduce the principal amount thereof, or reduce the rate or extend
the time of payment of interest thereon,  or reduce any premium payable upon the
redemption thereof, or reduce the amount of the principal of a Discount Security
that would be due and payable upon a declaration of acceleration of the maturity
thereof  pursuant  to the  Indenture,  without the consent of the holder of each
Senior Note then outstanding and affected;  (ii) reduce the aforesaid percentage
of Senior  Notes,  the  holders  of which are  required  to  consent to any such
supplemental indenture, or reduce the percentage of Senior Notes, the holders of
which are  required  to waive any  default  and its  consequences,  without  the
consent of the holder of each Senior Note then outstanding and affected thereby;
or (iii) modify any  provision of Section  6.01(c) of the  Indenture  (except to
increase the  percentage of principal  amount of securities  required to rescind
and annul any  declaration  of amounts due and payable under the Senior  Notes),
without  the  consent of the holder of each  Senior  Note then  outstanding  and
affected thereby. The Indenture also contains provisions  permitting the Holders
of a majority in aggregate principal amount of the Senior Notes of any series at
the time outstanding  affected  thereby,  on behalf of the Holders of the Senior
Notes of such series, to waive any past default in the performance of any of the
covenants contained in the Indenture,  or established  pursuant to the Indenture
with  respect  to such  series,  and its  consequences,  except a default in the
payment of the principal of or premium,  if any, or interest on any of the Notes
of such series. Any such consent or waiver by the registered Holder of this Note
(unless  revoked as provided in the  Indenture)  shall be conclusive and binding
upon such Holder and upon all future  Holders and owners of this Note and of any
Note issued in exchange  herefor or in place hereof  (whether by registration of
transfer  or  otherwise),  irrespective  of whether or not any  notation of such
consent or waiver is made upon this Note.

<PAGE>

Restrictive Covenants
---------------------

     Limitation upon Liens of Certain Subsidiaries

     For so long as any Senior  Notes of this  series  remain  outstanding,  the
Company will not create or incur or allow any of its  subsidiaries  to create or
incur any pledge or security  interest  on any of the capital  stock of a Public
Utility  Subsidiary  held  by  the  Company  or one  of  its  subsidiaries  or a
Significant Subsidiary.

     For purposes of this covenant:

     (i)  Public Utility  Subsidiary  means, at any particular time, a direct or
          indirect  subsidiary of the Company that, as a substantial part of its
          business,  distributes  or  transmits  electric  energy  to  retail or
          wholesale customers at rates or tariffs that are regulated by either a
          state or Federal regulatory authority.

     (ii) Significant  Subsidiary  means,  at any  particular  time,  any direct
          subsidiary  of ours whose  consolidated  gross assets or  consolidated
          gross  revenues  (having  regard to the  Company's  direct  beneficial
          interest in the shares, or the like, of that subsidiary)  represent at
          least 25% of the Company's  consolidated  gross assets or consolidated
          gross  revenues   appearing  in  the  most  recent  audited  financial
          statements of the Company as of the date of determination.

         Limitation upon Mergers, Consolidations and Sale of Assets

     The  provisions of Article Ten of the Indenture  shall be applicable to the
Senior Notes of this series.

     The  Indenture  contains  provisions  for  defeasance  of  (a)  the  entire
indebtedness evidenced by this Senior Note and (b) certain restrictive covenants
upon  compliance  by the Company  with  certain  conditions  set forth  therein;
provided,  however,  Section 11.01 of the Original  Indenture shall not apply to
the Senior Notes.

     No reference  herein to the  Indenture and no provision of this Senior Note
or of the Indenture  shall alter or impair the obligation of the Company,  which
are absolute and  unconditional,  to pay the principal of (and premium,  if any)
and interest, if any, on this Senior Note at the times, places and rates, and in
the coin or currency, herein prescribed.

     The  Senior  Notes of this  series are  issuable  only in  registered  form
without coupons in minimum  denominations of $50 or any integral multiple of $50
over such minimum denomination. At the Office or Agency of the Company or at the
Office of the Agent in The City of New York  referred  to on the face hereof and
as provided in the  Indenture  and  subject to certain  limitations  therein set
forth, the Senior Notes are  exchangeable for a like aggregate  principal amount
of Senior Notes and of like tenor of a difference  authorized  denomination,  as
requested by the Holder surrendering the same.

     As provided in the Indenture and subject to certain limitations therein set
forth,  this Senior Note is transferable by the registered  holder hereof on the
Security  Register  of the  Company,  upon  surrender  of this  Senior  Note for
registration  of  transfer  at the  office or agency  of the  Company  as may be
designated by the Company  accompanied by a written instrument or instruments of
transfer in form satisfactory to the Company or the Trustee duly executed by the
registered Holder hereof or his or her attorney duly authorized in writing,  and
thereupon one or more new Senior Notes of authorized  denominations  and for the
same  aggregate  principal  amount and series  will be issued to the  designated
transferee or transferees. No service charge will be made for any such transfer,
but the  Company  may require  payment of a sum  sufficient  to cover any tax or
other governmental charge payable in relation thereto.

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

     No  recourse  shall  be had  for the  payment  of the  principal  of or the
interest on this Senior  Note,  or for any claim based  hereon,  or otherwise in
respect  hereof,  or based on or in respect of the  Indenture,  or any indenture
supplement thereto, against any incorporator,  stockholder, officer or director,
past,  present or future,  as such,  of the  Company  or of any  predecessor  or
successor corporation, whether by virtue of any constitution, statute or rule of
law, or by the  enforcement of any assessment or penalty or otherwise,  all such
liability being, by the acceptance  hereof and as part of the  consideration for
the issue hereof, expressly waived and released.

     THIS  SENIOR  NOTE SHALL BE DEEMED TO BE A CONTRACT  MADE UNDER THE LAWS OF
THE STATE OF NEW YORK,  AND FOR ALL PURPOSES  SHALL BE  CONSTRUED IN  ACCORDANCE
WITH THE LAWS OF SAID STATE.

     All terms  used in this  Senior  Note (and not  otherwise  defined  in this
Senior Note) that are defined in the Indenture,  the Forward  Purchase  Contract
Agreement,  the Remarketing  Agreement or the Pledge Agreement,  as the case may
be,  shall have the  meanings  assigned  to them in the  Indenture,  the Forward
Purchase Contract Agreement,  the Remarketing Agreement or the Pledge Agreement,
as the case may be and as the context may require.

<PAGE>

     FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto

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     (please insert Social Security or other identifying number of assignee)

-----------------------------------------------------------------------------.

-----------------------------------------------------------------------------.

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PLEASE  PRINT  OR  TYPEWRITE  NAME AND  ADDRESS,  INCLUDING  POSTAL  ZIP CODE OF
ASSIGNEE

the  within  Senior  Note  and  all  rights   thereunder,   hereby   irrevocably
constituting and appointing

-----------------------------------------------------------------------------.

-----------------------------------------------------------------------------.

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agent to transfer said Senior Note on the books of the Company,  with full power
of substitution in the premises.

Dated:_______________ __, ______

                                          ----------------------------

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

<PAGE>

            [TO BE ATTACHED TO GLOBAL CERTIFICATES AND PLEDGED NOTES]

                       SCHEDULE OF INCREASES OR DECREASES

     The following increases or decreases in this [Global Certificate]  [Pledged
Note] have been made:

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                               Principal amount of
                 Amount of decrease    Amount of increase in       Senior Notes
                 in principal amount    principal amount of      evidenced by the
                   of Senior Notes          Senior Notes       [Global Certificate]       Signature of
                  evidenced by the        evidenced by the        [Pledged Note]      authorized signatory
                [Global Certificate]    [Global Certificate]      following such          of Trustee or
Date               [Pledged Note]          [Pledged Note]      decrease or increase     Collateral Agent
--------------- ---------------------- ----------------------- ---------------------- ----------------------
<S>             <C>                   <C>                     <C>                    <C>

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</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]