Document:

Exhibit 10.3

        PLEDGE AGREEMENT (THIS “AGREEMENT”) ENTERED INTO AS OF NOVEMBER __, 2009, BY AND BETWEEN U.S. PRECIOUS METALS DE MEXICO, S.A. DE C.V., REPRESENTED HEREIN BY ITS LEGAL REPRESENTATIVE, MR. DAVID WAYNE BURNEY (HEREINAFTER THE “PLEDGOR”), AND DUANE MORRIS LLP, A DELAWARE LIMITED LIABILITY PARTNERSHIP, REPRESENTED HEREIN BY ITS LEGAL REPRESENTATIVE, MS. KELI B. ISAACSON (HEREINAFTER THE “PLEDGEE”),
        PURSUANT TO THE FOLLOWING BACKGROUND, REPRESENTATIONS AND CLAUSES:

        B A C K G R O U N D

                  WHEREAS, , the Pledgor, together with its parent company, U.S. Precious Metals, Inc., a Delaware corporation (the “Parent” and together with the Pledgor, each a “Company” and collectively, the “Companies”), previously sought and obtained legal counsel and related services from the Pledgee, including, without limitation, legal counsel and related services
        performed in connection with regulatory and securities compliance, various financing arrangements, and general corporate representation (collectively, the “Engagement”);

                  WHEREAS, as of the date hereof, the Companies owe the amount of $1,297,678.39 (the “Existing Debt”) to the Pledgee for legal counsel and related services rendered and disbursements not yet paid to the Pledgee in connection with the Engagement;

                  WHEREAS, the Companies have requested that the Pledgee make certain financial accommodations to the Companies with respect to payment of the Existing Debt and to continue to provide professional services to the Companies in connection with the Engagement (the “Continued Engagement”);

                  WHEREAS, the Companies have agreed, on a joint and several basis, to pay the Pledgee for any professional services rendered in connection with the Continued Engagement immediately upon invoice thereof and that all such amounts, together with any and all interest due and owing to the Pledgee and any and all other additional costs and fees under the terms of the Engagement, shall constitute additional
        indebtedness of the Companies to the Pledgee and shall be secured indebtedness pursuant to the terms of this Agreement (such indebtedness, together with the Existing Debt, the “Debt”); and

                  WHEREAS, in order to guarantee payment of and provide security for, the Debt, the Pledgor wishes to pledge in first priority and degree in favor of the Pledgee all the mining concession titles of which the Pledgor is holder and which are described in Exhibit A of this Agreement, as well as any other mining concession titles that the Pledgor may acquire in the future and all Pledgor’s rights and
        products of any kind derived from or related to all the mining concession titles of which the Pledgor is or becomes holder (jointly, the “Mining Titles”).

        1

        

        

        

        R E P R E S E N T A T I O N S

        	
                     

                	
                     

                
	
                    I.

                	
                    The Pledgor hereby represents, through its legal representative, that:

                
	
                     

                	
                     

                
	
                     

                	
                    a) It is a company duly organized and existing pursuant to the laws of the United Mexican States, as evidenced in public deed number 15,970, dated March 5, 2003, granted before Ms. Maria Guadalupe Perez Palomino, notary public number 91 of the Federal District, which first true copy was duly registered before the Public Registry of Commerce of the Federal District under mercantile file number 306,255.

                
	
                     

                	
                     

                
	
                     

                	
                    b) Its legal representative has the necessary authority to enter into this Agreement and that such authority has not been limited, modified or revoked in any manner whatsoever, as evidenced in the public deed number 103,172, dated March 24, 2009, granted before Mr. Javier Arce Gargollo, notary public number 74 of the Federal District, which first true copy was duly registered before the Public Registry of Commerce of the Federal District on April 6,
                    2009, under mercantile file number 306,255.

                
	
                     

                	
                     

                
	
                     

                	
                    c) It is sole holder of the Mining Titles, which are free of all liens, encumbrances and ownership and transfer limitations. 

                
	
                     

                	
                     

                
	
                     

                	
                    d) Its execution of this Agreement and the granting of the pledge subject matter hereof do not violate and do not conflict with, or result in any breach pursuant to (i) its by-laws; (ii) any other agreement, contract or obligation to which the Pledgor is a party or to which the Pledgor or its properties or assets are subject; or (iii) any order, regulation, rule, attachment, decree, litigation, statute, law or resolution of any governmental authority
                    applicable to the Pledgor or the Mining Titles. 

                
	
                     

                	
                     

                
	
                     

                	
                    e) No consent or approval by any third party or governmental authority is required for (i) the execution, delivery, performance, granting or enforcement of this Agreement; (ii) the creation of a security interest in the Mining Titles; nor (iii) the fulfillment of its obligations pursuant to this Agreement. 

                
	
                     

                	
                     

                
	
                     

                	
                    f) In order to guarantee payment of and provide security for, the Debt, it hereby pledges in first priority and degree in favor of the Pledgee the Mining Titles pursuant to the terms of this Agreement. 

                
	
                     

                
	
                    II.

                	
                    The Pledgee hereby represents, through its legal representative, that:

                
	
                     

                	
                     

                
	
                     

                	
                    a) It is a limited liability partnership organized and existing pursuant to the laws of the State of Delaware, United States of America.

                
	
                     

                	
                     

                
	
                     

                	
                    b) Its legal representative has the necessary authority to enter into this Agreement and that such authority has not been limited, modified or revoked in any manner whatsoever.

                

        2

        

        

        

        	
                     

                	
                     

                
	
                     

                	
                    c) Its intention is to enter into this Agreement and accept the security interest in first priority and degree to be granted in its favor over the Mining Titles to secure payment of the Debt by the Pledgor. 

                
	
                     

                	
                     

                
	
                     

                	
                    Pursuant to the forgoing background and representations, the parties agree as follows: 

                

        C L A U S E S

                  FIRST. Acknowledgement of Debt. The Pledgor hereby acknowledges, affirms and agrees that (a) the Pledgor receives direct and indirect benefits from the legal counsel and related services provided by Pledgee to the Parent, (ii) all legal counsel and related services provided by the Pledgee to the Pledgor and the Parent were provided for the benefit of both Companies, (iii) the Existing Debt is
        validly due and owing to the Pledgee by both Companies on a joint and several basis, (iv) such Existing Debt has been documented by the Pledgee through the provision of invoices to the Parent, which invoices have not been paid (to the extent of the Existing Debt) or otherwise adjusted as of the date hereof, and (v) any additional Debt incurred shall be owing to the Pledgee by both Companies on a joint and several basis. 

                  SECOND. Pledge. As security for and to guarantee payment of, the Debt, and pursuant to the provisions of articles 354 and 355 of the General Law of Negotiable Instruments and Credit Operations (the “Credit Law”), the Pledgor hereby pledges in first priority and degree in favor of the Pledgee the Mining Titles. 

                  Pursuant to the provisions of articles 365, 366 and 376 of the Credit Law and the provisions of article 46 of the Mining Law, the Pledgor hereby undertakes to perform any and all necessary or convenient acts in order for this Agreement to be registered, either by the Pledgor or the Pledgee or either of their designated representatives, with the Public Registry of Mining. The Pledgor shall pay (or reimburse the
        Pledgee, if applicable) for all the registration fees, taxes, legal fees and notarial expenses related to such registration. 

                  THIRD. Possession of the Mining Titles. The Pledgor shall keep the physical possession of the Mining Titles and shall exercise all rights derived therefrom in the ordinary course of its activities, subject to the terms and conditions of this Agreement, and shall be responsible for any loss, cancellation or revocation of the Mining Titles and shall immediately notify the Pledgee in writing upon
        the occurrence of any of the foregoing. Likewise, the Pledgor shall pay all fees, taxes or other obligations which are necessary to maintain in force and effect the Mining Titles in accordance with the Mining Law and applicable regulations. All titles, assets or rights replacing or substituting the Mining Titles shall form part of the Mining Titles and shall be secured in terms of the pledge granted herein. 

                  FOURTH. Obligations of the Pledgor. As long as any portion of the Debt is outstanding or the Continued Representation is ongoing, the Pledgor shall: 

        3

        

        

        

        	
                     

                	
                     

                	
                     

                
	
                     

                	
                    a)

                	
                    Not sell, assign, pledge, secure or transfer in any other manner, total or partially, the ownership and rights of the Mining Titles, without the prior written consent of the Pledgee;

                
	
                     

                	
                     

                	
                     

                
	
                     

                	
                    b)

                	
                    Not cancel or revoke or permit or allow the cancellation or revocation of, all or any part of the Mining Titles, without the prior written consent of the Pledgee;

                
	
                     

                	
                     

                	
                     

                
	
                     

                	
                    c)

                	
                    Pay all fees, taxes, quotas and other obligations that are necessary in order to maintain the Mining Titles in force and effect pursuant to the Mining Law and applicable regulations;

                
	
                     

                	
                     

                	
                     

                
	
                     

                	
                    d)

                	
                    Deliver to the Pledgee all information related to the Mining Titles which the Pledgee may request in the future and allow the Pledgee and its representatives to inspect, audit and make copies of all registries and all other documents of the Pledgor related to the Mining Titles, and if requested by the Pledgee, deliver to the Pledgee certified copies of such registries and documents; and

                
	
                     

                	
                     

                	
                     

                
	
                     

                	
                    e)

                	
                    Execute and deliver all instruments or documents, and carry out all acts, which are necessary or convenient, or which may be reasonably requested by the Pledgee, in order to perfect and protect the pledge granted herein or allow the Pledgee to exercise its rights and actions pursuant to this Agreement. 

                

                  In the event that the Pledgor encumbers or transfers or purports to encumber or transfer, totally or partially, the ownership and rights of the Mining Titles in contravention of the provisions of this Agreement, such purported encumbrance or transfer shall be null and void and without any legal effect. 

                  FIFTH. Term. The pledge subject matter of this Agreement shall not be cancelled or reduced until the total amount of the Debt is paid in its entirety and the Continued Representation has permanently ceased. The foregoing shall be binding without prejudice of (a) the Pledgor granting any other pledges or guarantees, totally or partially, now or in the future, to secure the Debt, and (b) the Debt
        being paid partially to the Pledgee on behalf of the Pledgor. Likewise, the parties agree that the Mining Titles secure and guarantee in their entirety the Debt, therefore, the Pledgor shall not have the right to request reduction of the Mining Titles for any partial payment made in order to secure or guarantee the Debt. The Pledgor expressly waives any right to which it may be entitled under article 349 of the Credit Law. 

                  Once the Debt is indefeasibly paid in full to the Pledgee and the Continued Representation has permanently ceased, the pledge of the Mining Titles shall be released without the need of any action or guarantee by the Pledgee and shall be released by the Pledgee, all without recourse, representation or warranty whatsoever and at the Pledgor’s sole expense. 

                  SIXTH. Default and Enforcement. In the event of a breach by the Pledgor of any of its obligations under this Agreement, the Pledgee may enforce the pledge granted herein, at the Pledgor’s sole cost and expense, including, without limitation, all legal fees and expenses incurred by the Pledgee, pursuant to the applicable procedures set forth in the Commerce Code. For such purposes, the
        Pledgee shall appoint a Mexican individual or company organized pursuant to Mexican laws to whom the Mining Titles shall be transferred in order to comply with the provisions set forth in articles 10 and 11 of the Mining Law. 

        4

        

        

        

                  SEVENTH. Indemnification. The Pledgor shall indemnify and hold harmless the Pledgee and its beneficiaries, assignees, partners, directors, officers, employees, agents and representatives (hereinafter, the “Indemnitees”), from and against any liability, obligation, loss, damage, penalty, claim, action, suit, resolution, order, costs and expenses of any nature (including
        reasonable attorneys’ fees and expenses) incurred by or imposed upon any Indemnitee arising from or related in any manner to the execution and enforcement of, and compliance with, this Agreement, or otherwise related to the fulfillment of any of the terms of this Agreement or the preservation of the rights granted herein; provided, however, that no Indemnitee shall be indemnified pursuant to this clause for any expense, loss, damage or liability caused by its own gross negligence
        or willful misconduct. The Pledgor agrees that upon receipt of a notice from any Indemnitee of any event of liability, obligation, loss, damage, penalty, claim, action, suit, resolution, order, costs and expenses of any nature, the Pledgor shall assume full responsibility for the defense of the same at its sole cost and expense. Each Indemnitee agrees to make its best efforts to notify the Pledgor in a timely manner with respect of any of such events of which the Indemnitee has
        knowledge. 

                  The Pledgor shall pay or reimburse the Pledgee for any fees, costs and expenses incurred by the Pledgee in connection with the creation and protection of the pledge granted in this Agreement, including, without limitation, all fees and expenses of legal counsel. All amounts paid by any Indemnitee pursuant to which the Indemnitee has a right to be reimbursed shall constitute part of the Debt guaranteed and
        secured by the Mining Titles hereunder. 

                  EIGHT. Taxes. The parties expressly agree that any taxes, fees and other tax obligations established or imposed by applicable tax regulations as consequence of this Agreement, shall be borne by solely by the Pledgor and to the extent imposed upon or paid by the Pledgee, shall be a reimbursable obligation of the Pledgor that constitutes part of the Debt guaranteed and secured by the Mining Titles
        hereunder.

                  NINTH. Notices. The parties agree that any notice, requirement or any other communication between the parties in connection with this Agreement shall be made in writing and shall be delivered personally, by registered or certified mail, by internationally recognized courier service or by electronic mail (with written confirmation of receipt), to the contact information indicated below:
        

        	
                     

                	
                     

                
	
                    Pledgee:

                	
                    Pledgor:

                
	
                     

                	
                     

                
	
                    Duane Morris, LLP

                	
                    U.S. Precious Metals de México, S.A. de C.V.

                
	
                    111 S. Calvert Street, Suite, 2000

                	
                    Jacaranda 119

                
	
                    Baltimore, MD 21202

                	
                    Col. Los Angeles

                
	
                    Estados Unidos de América

                	
                    Michoacan, Morelia, C.P. 58100

                
	
                    Tel.: 410-949-2912

                	
                    Tel.: 443-343-04-60

                
	
                    Email: kbisaacson@duanemorris.com

                	
                    Email: dwburney@usprgold.com

                
	
                    Attn: Keli B. Isaacson y/o 

                    Eduardo Ramos Gomez

                	
                    Attn: David Wayne Burney

                

        5

        

        

        

        TENTH. Modifications. This Agreement constitutes the entire understanding between the parties with respect to the subject matter hereof and supersedes any prior discussions, negotiations or agreements, whether verbally or in writing. The parties expressly agree that this Agreement may not be modified in whole or in part unless by written agreement between the parties. There are no other terms or conditions, whether expressed or implied, written or verbal,
        between the parties with respect to the subject matter hereof. 

        ELEVENTH. Headings. The parties agree that the headings of each clause of this Agreement are for reference purposes only and that such headings shall not affect the interpretation of this Agreement. 

        TWELFTH. Governing Law and Jurisdiction. This Agreement shall be governed and construed pursuant to the applicable provisions of the Commerce Code and the Credit Law in force and effect, and for the interpretation and enforcement of this Agreement both parties submit themselves to the jurisdiction of the courts located in Mexico City, Federal District, expressly waiving any other jurisdiction which may correspond to them by reason of their present or
        future domiciles or otherwise. 

        THIRTEENTH. Assignment. The Pledgor may not assign this Agreement or any of its rights or obligations hereunder without the prior written consent of the Pledgee. The Pledgee may freely assign this Agreement and/or any of its rights or obligations hereunder without the consent of the Pledgor. 

        FOURTEENTH. Waiver. No waiver by any of the parties of any of the provisions of this Agreement shall be deemed a waiver of any other provision or any subsequent breach of such provision or any other provision, including the time of execution of such provision. The exercise by one of the parties of any right set forth in this Agreement or provided by law shall not impede the exercise by such party of any other right set forth herein or provided by law.
        

        FIFTEENTH. Severability. If any provision or part of any provision of this Agreement shall for any reason be held invalid, illegal, or unenforceable in any applicable jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other provisions or the remaining part of any effective provisions of this Agreement, and such invalidity, illegality, or unenforceability shall not invalidate such provision in any other jurisdiction, and
        this Agreement shall be construed as if such invalid, illegal, or unenforceable provision or part thereof had never been contained herein, but only to the extent of its invalidity, illegality, or unenforceability. 

        SIXTEENTH. Counterparts. This Agreement is executed in two or more counterparts in English and Spanish versions, each of the same is and shall remain one and the same instrument. In the event of controversy in the interpretation of this Agreement, the Spanish version shall prevail.

        SEVENTEENTH. Incorporation of Background and Representations. The Background paragraphs and Representations paragraphs set forth above are true and correct and are incorporated herein by reference and made a binding part of this Agreement as though fully set forth herein.

        [SIGNATURE PAGE FOLLOWS]

        6

        

        

        

                  IN VIEW OF THE FOREGOING, the parties have executed this Agreement as of the date first written above.

        	
                     

                	
                     

                	
                     

                	
                     

                	
                     

                
	
                     

                	
                    “PLEDGEE”

                	
                     

                	
                     

                	
                    “PLEDGOR”

                
	
                     

                	
                    Duane Morris LLP

                	
                     

                	
                     

                	
                    U.S. Precious Metals de México,

                
	
                     

                	
                     

                	
                     

                	
                     

                	
                    S.A de C.V.

                
	
                     

                	
                     

                	
                     

                	
                     

                	
                     

                
	
                    By:

                	/s/ Keli B. Isaacson	
                     

                	
                    By:

                	
                    /s/ David Wayne Burney

                
	
                     

                	 	
                     

                	
                     

                	 
	
                    Name: Keli B. Isaacson

                	
                     

                	
                    Name: David Wayne Burney

                
	
                    Title: Partner

                	
                     

                	
                    Title: Attorney-In-Fact

                

        Mining Titles Pledge Agreement

        

        

        

        EXHIBIT A

        MINING CONCESSION TITLES

        	
                     

                	
                     

                	
                     

                	
                     

                	
                     

                	
                     

                	
                     

                	
                     

                
	
                     

                	
                    LOT

                	
                     

                	
                    HECTARES

                	
                    TITLE

                	
                    TYPE OF CONCESSION

                	
                    TERM

                	
                    LOCATION

                
	 	 	 	 	 	 	 	 
	
                    1

                	
                    Solidaridad

                	
                     

                	
                    174.5408

                	
                    220315

                	
                    Exploitation

                	
                    July 10, 2053

                	
                    Caracuaro Michoacan

                
	 	 	 	 	 	 	 	 
	
                    2

                	
                    Solidaridad II

                	
                     

                	
                    2,162.2311

                	
                    220503

                	
                    Exploitation

                	
                    August 13,2053

                	
                    Caracuaro Michoacan

                
	 	 	 	 	 	 	 	 
	
                    3

                	
                    Solidaridad II Fracción A

                	
                     

                	
                    1.4544

                	
                    220504

                	
                    Exploitation

                	
                    August 13,2053

                	
                    Caracuaro Michoacan

                
	 	 	 	 	 	 	 	 
	
                    4

                	
                    Solidaridad II Fracción B

                	
                     

                	
                    0.0072

                	
                    220505

                	
                    Exploitation

                	
                    August 13,2053

                	
                    Caracuaro Michoacan 

                
	 	 	 	 	 	 	 	 
	
                    5

                	
                    Solidaridad III

                	
                     

                	
                    294.0620

                	
                    223444

                	
                    Exploitation

                	
                    December 13, 2054

                	
                    Caracuaro Michoacan 

                
	 	 	 	 	 	 	 	 
	
                    6

                	
                    Solidaridad 4

                	
                     

                	
                    149.4244

                	
                    220612

                	
                    Exploitation

                	
                    September 3, 2053

                	
                    Caracuaro Michoacan 

                
	 	 	 	 	 	 	 	 
	
                    7

                	
                    La Ceiba

                	
                     

                	
                    921.3201

                	
                    223119

                	
                    Exploitation

                	
                    October 18, 2054

                	
                    Caracuaro Michoacan 

                
	 	 	 	 	 	 	 	 
	
                    8

                	
                    La Sabila

                	
                     

                	
                    11405

                	
                    227272

                	
                    Exploitation

                	
                    June 1st, 2056

                	
                    Caracuaro Michoacan 

                
	 	 	 	 	 	 	 	 

        Mining Titles Pledge Agreementex4-1.htm

    
      

    

    EXHIBIT
4.1

     

    
      

       

      

       

      

    

     

    ENERGY
FUTURE HOLDINGS CORP.

     

     

    AND
EACH OF THE GUARANTORS PARTY HERETO

     

     

    10.000%
SENIOR SECURED NOTES DUE 2020

     

     

    

     

    

     

    

    
      	 
      
	
              INDENTURE

            
	 
      
	
              DATED
      AS OF JANUARY 12, 2010

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

            
	 
      
	
              TRUSTEE

            
	 
      

    

    

    
      

      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    CROSS-REFERENCE
TABLE*

     

    
      	
              Trust
      Indenture Act Section

            	
              Indenture
      Section

            
	
              310(a)(1)

            	
              7.10

            
	
              (a)(2)

            	
              7.10

            
	
              (a)(3)

            	
              N.A.

            
	
              (a)(4)

            	
              N.A.

            
	
              (a)(5)

            	
              7.10

            
	
              (b)

            	
              7.10

            
	
              (c)

            	
              N.A.

            
	
              311(a)

            	
              7.11

            
	
              (b)

            	
              7.11

            
	
              (c)

            	
              N.A.

            
	
              312(a)

            	
              2.05

            
	
              (b)

            	
              13.03

            
	
              (c)

            	
              13.03

            
	
              313(a)

            	
              7.06;
      13.02

            
	
              (b)(1)

            	
              10.06

            
	
              (b)(2)

            	
              7.06;
      7.07; 10.06

            
	
              (c)

            	
              7.06;
      13.02

            
	
              (d)

            	
              7.06

            
	
              314(a)

            	
              4.03;
      4.04; 13.02; 13.05

            
	
              (b)

            	
              10.05

            
	
              (c)(1)

            	
              7.02;
      13.04

            
	
              (c)(2)

            	
              7.02;
      13.04

            
	
              (c)(3)

            	
              N.A.

            
	
              (d)

            	
              10.06

            
	
              (e)

            	
              13.05

            
	
              (f)

            	
              N.A.

            
	
              315(a)

            	
              7.01

            
	
              (b)

            	
              7.05;
      13.02

            
	
              (c)

            	
              7.01

            
	
              (d)

            	
              7.01

            
	
              (e)

            	
              6.14

            
	
              316(a)
      (last sentence)

            	
              2.09

            
	
              (a)(1)(A)

            	
              6.05

            
	
              (a)(1)(B)

            	
              6.04

            
	
              (a)(2)

            	
              N.A.

            
	
              (b)

            	
              6.07

            
	
              (c)

            	
              9.04;
      1.05; 2.12

            
	
              317(a)(1)

            	
              6.08

            
	
              (a)(2)

            	
              6.12

            
	
              (b)

            	
              2.04

            
	
              318(a)

            	
              13.01

            
	
              (b)

            	
              N.A.

            
	
              (c)

            	
              13.01

            

    

    N.A.
means not applicable.

    _____________________________________________

    *This
Cross Reference Table is not part of the Indenture.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE OF CONTENTS

     

     

    
      
        	 
      	
                Page

              
	
                ARTICLE
      1 DEFINITIONS AND INCORPORATION BY REFERENCE

              	 
      
	
                Section
      1.01

              	
                Definitions

              	
                1

              
	
                Section
      1.02

              	
                Other
      Definitions

              	
                49

              
	
                Section
      1.03

              	
                Incorporation
      by Reference of Trust Indenture Act

              	
                49

              
	
                Section
      1.04

              	
                Rules
      of Construction

              	
                50

              
	
                Section
      1.05

              	
                Acts
      of Holders

              	
                51

              
	
                ARTICLE
      2 THE NOTES

              	
                52

              
	
                Section
      2.01

              	
                Form
      and Dating; Terms

              	
                52

              
	
                Section
      2.02

              	
                Execution
      and Authentication

              	
                53

              
	
                Section
      2.03

              	
                Registrar
      and Paying Agent

              	
                54

              
	
                Section
      2.04

              	
                Paying
      Agent to Hold Money in Trust

              	
                54

              
	
                Section
      2.05

              	
                Holder
      Lists

              	
                54

              
	
                Section
      2.06

              	
                Transfer
      and Exchange

              	
                54

              
	
                Section
      2.07

              	
                Replacement
      Notes

              	
                67

              
	
                Section
      2.08

              	
                Outstanding
      Notes

              	
                67

              
	
                Section
      2.09

              	
                Treasury
      Notes

              	
                67

              
	
                Section
      2.10

              	
                Temporary
      Notes

              	
                67

              
	
                Section
      2.11

              	
                Cancellation

              	
                68

              
	
                Section
      2.12

              	
                Defaulted
      Cash Interest

              	
                68

              
	
                Section
      2.13

              	
                CUSIP
      and ISIN Numbers

              	
                68

              
	
                ARTICLE
      3 REDEMPTION

              	
                69

              
	
                Section
      3.01

              	
                Notices
      to Trustee

              	
                69

              
	
                Section
      3.02

              	
                Selection
      of Notes to Be Redeemed or Purchased

              	
                69

              
	
                Section
      3.03

              	
                Notice
      of Redemption

              	
                69

              
	
                Section
      3.04

              	
                Effect
      of Notice of Redemption

              	
                70

              
	
                Section
      3.05

              	
                Deposit
      of Redemption or Purchase Price

              	
                70

              
	
                Section
      3.06

              	
                Notes
      Redeemed or Purchased in Part

              	
                71

              
	
                Section
      3.07

              	
                Optional
      Redemption

              	
                71

              
	
                Section
      3.08

              	
                Mandatory
      Redemption

              	
                72

              
	
                Section
      3.09

              	
                Offers
      to Repurchase by Application of Excess Proceeds

              	
                72

              
	
                ARTICLE
      4 COVENANTS

              	
                74

              
	
                Section
      4.01

              	
                Payment
      of Notes

              	
                74

              
	
                Section
      4.02

              	
                Maintenance
      of Office or Agency

              	
                75

              
	
                Section
      4.03

              	
                Reports
      and Other Information

              	
                75

              
	
                Section
      4.04

              	
                Compliance
      Certificate

              	
                76

              
	
                Section
      4.05

              	
                Taxes

              	
                76

              
	
                Section
      4.06

              	
                Stay,
      Extension and Usury Laws

              	
                77

              
	
                Section
      4.07

              	
                Limitation
      on Restricted Payments

              	
                77

              
	
                Section
      4.08

              	
                Dividend
      and Other Payment Restrictions Affecting Restricted
      Subsidiaries

              	
                85

              
	
                Section
      4.09

              	
                Limitation
      on Incurrence of Indebtedness and Issuance of Disqualified Stock and
      Preferred Stock

              	
                87

              
	
                Section
      4.10

              	
                Asset
      Sales

              	
                92

              
	
                Section
      4.11

              	
                Transactions
      with Affiliates

              	
                96

              
	
                Section
      4.12

              	
                Liens

              	
                98

              
	
                Section
      4.13

              	
                Corporate
      Existence

              	
                99

              
	
                Section
      4.14

              	
                Offer
      to Repurchase upon Change of Control

              	
                99

              
	
                Section
      4.15

              	
                Limitation
      on Guarantees of Indebtedness by Restricted Subsidiaries

              	
                101

              
	
                Section
      4.16

              	
                Restrictions
      on Permitted Asset Transfers

              	
                102

              
	
                Section
      4.17

              	
                Restrictions
      on TCEH Transfers

              	
                103

              
	
                Section
      4.18

              	
                Restrictions
      on Certain Investments in Oncor Subsidiaries and the
      Collateral

              	
                104

              
	
                Section
      4.19

              	
                After-Acquired
      Property

              	
                105

              
	
                Section
      4.20

              	
                Impairment
      of Security Interest

              	
                105

              
	
                Section
      4.21

              	
                Further
      Assurances

              	
                105

              
	
                ARTICLE
      5 SUCCESSORS

              	
                106

              
	
                Section
      5.01

              	
                Merger,
      Consolidation, or Sale of All or Substantially All Assets

              	
                106

              
	
                Section
      5.02

              	
                Successor
      Corporation Substituted

              	
                108

              
	
                ARTICLE
      6 DEFAULTS AND REMEDIES

              	
                108

              
	
                Section
      6.01

              	
                Events
      of Default

              	
                108

              
	
                Section
      6.02

              	
                Acceleration

              	
                111

              
	
                Section
      6.03

              	
                Other
      Remedies

              	
                111

              
	
                Section
      6.04

              	
                Waiver
      of Past Defaults

              	
                111

              
	
                Section
      6.05

              	
                Control
      by Majority

              	
                112

              
	
                Section
      6.06

              	
                Limitation
      on Suits

              	
                112

              
	
                Section
      6.07

              	
                Rights
      of Holders of Notes to Receive Payment

              	
                112

              
	
                Section
      6.08

              	
                Collection
      Suit by Trustee

              	
                112

              
	
                Section
      6.09

              	
                Restoration
      of Rights and Remedies

              	
                113

              
	
                Section
      6.10

              	
                Rights
      and Remedies Cumulative

              	
                113

              
	
                Section
      6.11

              	
                Delay
      or Omission Not Waiver

              	
                113

              
	
                Section
      6.12

              	
                Trustee
      May File Proofs of Claim

              	
                113

              
	
                Section
      6.13

              	
                Priorities

              	
                114

              
	
                Section
      6.14

              	
                Undertaking
      for Costs

              	
                114

              
	
                ARTICLE
      7 TRUSTEE

              	
                114

              
	
                Section
      7.01

              	
                Duties
      of Trustee

              	
                114

              
	
                Section
      7.02

              	
                Rights
      of Trustee

              	
                115

              
	
                Section
      7.03

              	
                Individual
      Rights of Trustee

              	
                116

              
	
                Section
      7.04

              	
                Trustee’s
      Disclaimer

              	
                117

              
	
                Section
      7.05

              	
                Notice
      of Defaults

              	
                117

              
	
                Section
      7.06

              	
                Reports
      by Trustee to Holders of the Notes

              	
                117

              
	
                Section
      7.07

              	
                Compensation
      and Indemnity

              	
                117

              
	
                Section
      7.08

              	
                Replacement
      of Trustee

              	
                118

              
	
                Section
      7.09

              	
                Successor
      Trustee by Merger, etc

              	
                119

              
	
                Section
      7.10

              	
                Eligibility;
      Disqualification

              	
                119

              
	
                Section
      7.11

              	
                Preferential
      Collection of Claims Against Issuer

              	
                119

              
	
                ARTICLE
      8 LEGAL DEFEASANCE AND COVENANT DEFEASANCE

              	
                119

              
	
                Section
      8.01

              	
                Option
      to Effect Legal Defeasance or Covenant Defeasance

              	
                119

              
	
                Section
      8.02

              	
                Legal
      Defeasance and Discharge

              	
                119

              
	
                Section
      8.03

              	
                Covenant
      Defeasance

              	
                120

              
	
                Section
      8.04

              	
                Conditions
      to Legal or Covenant Defeasance

              	
                121

              
	
                Section
      8.05

              	
                Deposited
      Money and Government Securities to Be Held in Trust; Other Miscellaneous
      Provisions

              	
                122

              
	
                Section
      8.06

              	
                Repayment
      to Issuer

              	
                122

              
	
                Section
      8.07

              	
                Reinstatement

              	
                123

              
	
                ARTICLE
      9 AMENDMENT, SUPPLEMENT AND WAIVER

              	
                123

              
	
                Section
      9.01

              	
                Without
      Consent of Holders of Notes

              	
                123

              
	
                Section
      9.02

              	
                With
      Consent of Holders of Notes

              	
                125

              
	
                Section
      9.03

              	
                Compliance
      with Trust Indenture Act

              	
                126

              
	
                Section
      9.04

              	
                Revocation
      and Effect of Consents

              	
                126

              
	
                Section
      9.05

              	
                Notation
      on or Exchange of Notes.

              	
                127

              
	
                Section
      9.06

              	
                Trustee
      to Sign Amendments, etc.

              	
                127

              
	
                ARTICLE
      10 COLLATERAL AND SECURITY

              	
                127

              
	
                Section
      10.01

              	
                Equal
      and Ratable Sharing of Collateral by Holders of Parity Lien
      Debt.

              	
                127

              
	
                Section
      10.02

              	
                Ranking
      of Parity Liens.

              	
                128

              
	
                Section
      10.03

              	
                Relative
      Rights.

              	
                129

              
	
                Section
      10.04

              	
                Security
      Documents.

              	
                129

              
	
                Section
      10.05

              	
                Recording
      and Opinions.

              	
                130

              
	
                Section
      10.06

              	
                Release
      of Collateral.

              	
                130

              
	
                Section
      10.07

              	
                Authorization
      of Actions to Be Taken by the Trustee Under the Security
      Documents

              	
                131

              
	
                Section
      10.08

              	
                Authorization
      of Receipt of Funds by the Trustee under the Pledge
    Agreement.

              	
                131

              
	
                Section
      10.09

              	
                Lien
      Sharing and Priority Confirmation.

              	
                132

              
	
                Section
      10.10

              	
                Voting.

              	
                132

              
	
                Section
      10.11

              	
                Limitation
      on Duty of Trustee in Respect of Collateral;
    Indemnification.

              	
                132

              
	
                Section
      10.12

              	
                Asset
      Sale Cash Collateral Account.

              	
                133

              
	
                Section
      10.13

              	
                Collateral
      Trustee a Third Party Beneficiary.

              	
                133

              
	
                ARTICLE
      11 GUARANTEES

              	
                133

              
	
                Section
      11.01

              	
                Guarantee

              	
                133

              
	
                Section
      11.02

              	
                Limitation
      on Guarantor Liability

              	
                135

              
	
                Section
      11.03

              	
                Execution
      and Delivery

              	
                135

              
	
                Section
      11.04

              	
                Subrogation

              	
                136

              
	
                Section
      11.05

              	
                Benefits
      Acknowledged

              	
                136

              
	
                Section
      11.06

              	
                Release
      of Guarantees

              	
                136

              
	
                ARTICLE
      12 SATISFACTION AND DISCHARGE

              	
                137

              
	
                Section
      12.01

              	
                Satisfaction
      and Discharge

              	
                137

              
	
                Section
      12.02

              	
                Application
      of Trust Money

              	
                138

              
	
                ARTICLE
      13 MISCELLANEOUS

              	
                138

              
	
                Section
      13.01

              	
                Trust
      Indenture Act Controls

              	
                138

              
	
                Section
      13.02

              	
                Notices

              	
                138

              
	
                Section
      13.03

              	
                Communication
      by Holders of Notes with Other Holders of Notes

              	
                140

              
	
                Section
      13.04

              	
                Certificate
      and Opinion as to Conditions Precedent

              	
                140

              
	
                Section
      13.05

              	
                Statements
      Required in Certificate or Opinion

              	
                140

              
	
                Section
      13.06

              	
                Rules
      by Trustee and Agents

              	
                140

              
	
                Section
      13.07

              	
                No
      Personal Liability of Directors, Officers, Employees and
      Stockholders

              	
                141

              
	
                Section
      13.08

              	
                Governing
      Law

              	
                141

              
	
                Section
      13.09

              	
                Waiver
      of Jury Trial

              	
                141

              
	
                Section
      13.10

              	
                Force
      Majeure

              	
                141

              
	
                Section
      13.11

              	
                No
      Adverse Interpretation of Other Agreements

              	
                141

              
	
                Section
      13.12

              	
                Successors

              	
                141

              
	
                Section
      13.13

              	
                Severability

              	
                141

              
	
                Section
      13.14

              	
                Counterpart
      Originals

              	
                142

              
	
                Section
      13.15

              	
                Table
      of Contents, Headings, etc

              	
                142

              
	
                Section
      13.16

              	
                Qualification
      of Indenture.

              	
                142

              
	
                Section
      13.17

              	
                Ring-Fencing
      of Oncor

              	
                142

              

      

EXHIBITS

     

    
      	
              Exhibit
      A

            	
              FORM
      OF NOTE

            
	
              Exhibit
      B

            	
              FORM
      OF CERTIFICATE OF TRANSFER

            
	
              Exhibit
      C

            	
              FORM
      OF CERTIFICATE OF EXCHANGE

            
	
              Exhibit D

            	
              FORM
      OF SUPPLEMENTAL INDENTURE

            
	
              Exhibit
      E

            	
              FORM
      OF PERMITTED TRANSFER SUPPLEMENTAL INDENTURE

            
	
              Exhibit
      F

            	
              FORM
      OF TCEH TRANSFER SUPPLEMENTAL INDENTURE

            
	
              Exhibit
      G

            	
              FORM
      OF ADDITIONAL NOTES SUPPLEMENTAL
INDENTURE

            

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    INDENTURE
dated as of January 12, 2010 among Energy Future Holdings Corp., a Texas
corporation (the “Issuer”), the
Guarantors (as defined herein) and The Bank of New York Mellon Trust Company,
N.A., as Trustee.

     

    WITNESSETH

     

    WHEREAS,
the Issuer has duly authorized the creation of an issue of $500,000,000
aggregate principal amount of 10.000% Senior Secured Notes due 2020 (the “Initial
Notes”);

     

    WHEREAS,
each of the Issuer and each of the Guarantors has duly authorized the execution
and delivery of this Indenture;

     

    NOW,
THEREFORE, the Issuer, the Guarantors and the Trustee agree as follows for the
benefit of each other and for the equal and ratable benefit of the Holders of
the Notes.

     

    ARTICLE
1

     

    

     

    DEFINITIONS
AND INCORPORATION BY REFERENCE

     

    Section
1.01 Definitions

     

    
      	
              .

            

    

     

    “144A Global Note”
means a Global Note substantially in the form of Exhibit A hereto
bearing the Global Note Legend, the Private Placement Legend and deposited with
or on behalf of, and registered in the name of, the Depositary or its nominee
that will be issued in a denomination equal to the outstanding principal amount
of the Notes sold in reliance on Rule 144A.

     

    “9.75% Notes” means
the 9.75% Senior Secured Notes due 2019 issued by the Issuer under the 9.75%
Notes Indenture, including the guarantees thereof.

     

    “9.75% Notes
Indenture” means the indenture, dated as of November 16, 2009, under
which the 9.75% Notes were issued.

     

    “Acquired
Indebtedness” means, with respect to any specified Person,

     

    (1)           Indebtedness
of any other Person existing at the time such other Person is merged with or
into or became a Restricted Subsidiary of such specified Person, including
Indebtedness incurred in connection with, or in contemplation of, such other
Person merging with or into or becoming a Restricted Subsidiary of such
specified Person, and

     

    (2)           Indebtedness
secured by a Lien encumbering any asset acquired by such specified
Person.

    

    “Additional Interest”
means all additional interest then owing pursuant to the Registration Rights
Agreement.

     

    “Additional Notes”
means additional Notes (other than the Initial Notes and Exchange Notes issued
in exchange for such Initial Notes) issued from time to time under this
Indenture in accordance with Sections 2.02, 4.09 and 4.12 hereof, as part of the
same series as the Initial Notes.

     

    “Affiliate” of any
specified Person means any other Person directly or indirectly controlling or
controlled by or under direct or indirect common control with such specified
Person.  For purposes of this definition, “control” (including, with
correlative meanings, the terms “controlling,” “controlled by” and “under common
control with”), as used with respect to any Person, shall mean the possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of such Person, whether through the ownership of voting
securities, by agreement or otherwise.

     

    “Agent” means any
Registrar, co-registrar, Paying Agent or additional paying agent.

     

    “Agent’s Message”
means a message transmitted by DTC to, and received by, the Depositary and
forming a part of the book-entry confirmation, which states that DTC has
received an express acknowledgment from each participant in DTC tendering the
Notes that such participants have received the Letter of Transmittal and agree
to be bound by the terms of the Letter of Transmittal and the Issuer may enforce
such agreement against such participants.

     

    “Applicable Premium”
means, with respect to any Note on any Redemption Date, the greater
of:

     

    (1)           1.0%
of the principal amount of such Note; and

     

    (2)           the
excess, if any, of (a) the present value at such Redemption Date of (i) the
redemption price of such Note at January 15, 2015 (such redemption price as set
forth in the table appearing under Section 3.07(d) hereof), plus (ii) all
required interest payments due on such Note through January 15, 2015 (excluding
accrued but unpaid interest to the Redemption Date), computed using a discount
rate equal to the Treasury Rate as of such Redemption Date plus 50 basis points;
over (b) the principal amount of such Note.

     

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

     

    “Asset Sale”
means:

     

    (1)           the
sale, conveyance, transfer or other disposition (each referred to in this
definition as a “disposition”),
whether in a single transaction or a series of related transactions, of property
or assets (including by way of a Sale and Lease-Back Transaction) of the Issuer
or any of its Restricted Subsidiaries (including the disposition of outstanding
Equity Interests of an Unrestricted Subsidiary owned directly by the Issuer or
any of its Restricted Subsidiaries) and, solely to the extent cash or Cash
Equivalents are received therefrom by any Oncor Subsidiary or any Successor
Oncor Business and are thereafter dividended, distributed or otherwise paid to
the Issuer or any of its Restricted Subsidiaries:  (i) the primary
issuance of new Equity Interests by any Oncor Subsidiary or any Successor Oncor
Business, (ii) the disposition of outstanding Equity Interests of an Oncor
Subsidiary or a Successor Oncor Business owned directly by another Oncor
Subsidiary or by another Successor Oncor Business and (iii) the disposition of
assets owned directly or indirectly by any Oncor Subsidiary or any Successor
Oncor Business.  For the avoidance of doubt, with respect to
Unrestricted Subsidiaries other than Oncor Subsidiaries or Successor Oncor
Businesses, the following shall not be deemed to be “Asset
Sales”:  (i) the primary issuance of new Equity Interests by an
Unrestricted Subsidiary and (ii) sales or transfers of assets owned directly by
Unrestricted Subsidiaries; or

     

    (2)           the
issuance or sale of Equity Interests of any Restricted Subsidiary, whether in a
single transaction or a series of related transactions (other than Preferred
Stock of Restricted Subsidiaries issued in compliance with Section 4.09
hereof);

     

    in each
case, other than:

     

    (a)           any
disposition of Cash Equivalents or Investment Grade Securities or obsolete or
worn out equipment (including any such equipment that has been refurbished in
contemplation of such disposition) in the ordinary course of business or any
disposition of inventory or goods (or other assets) held for sale in the
ordinary course of business;

     

    (b)           (1)
the disposition of all or substantially all of the assets of the Issuer in a
manner permitted by Section 5.01 hereof (other than a disposition excluded from
Section 5.01 by the proviso at the end of the first paragraph of Section 5.01
hereof) or any disposition that constitutes a Change of Control pursuant to this
Indenture or (2) any Permitted Asset Transfer made in accordance with Section
4.16 hereof;

     

    (c)           the
making of any Restricted Payment or Permitted Investment that is permitted to be
made, and is made, under Section 4.07 hereof;

     

    (d)           any
disposition of assets or issuance or sale of Equity Interests of any Restricted
Subsidiary in any transaction or series of related transactions with an
aggregate fair market value of less than $75.0 million;

     

    (e)           any
disposition of property or assets or issuance of securities by a Restricted
Subsidiary to the Issuer or by the Issuer or a Restricted Subsidiary to another
Restricted Subsidiary; provided, however to the extent
such transfer involves Collateral or any part thereof, the transferee shall
execute a joinder agreement to the Security Documents or enter into a
substantially similar collateral trust or intercreditor agreement immediately
upon consummation of such transaction in accordance with the requirements of the
Security Documents to pledge such transferred Collateral for the benefit of the
Holders of the Notes;

     

    (f)           except
in the case of a disposition of Collateral, to the extent allowable under
Section 1031 of the Code or any comparable or successor provision, any
exchange of like property (excluding any boot thereon) for use in a Similar
Business;

     

    (g)           the
lease, assignment or sub-lease of any real or personal property in the ordinary
course of business;

     

    (h)           (i)
any disposition of Equity Interests in an Unrestricted Subsidiary (other than an
Oncor Subsidiary or a Successor Oncor Business) and (ii) any sale, conveyance,
transfer or other disposition of Equity Interests in, or assets of, any of the
Oncor Subsidiaries or a Successor Oncor Business (other than the Collateral) to
the extent no cash or Cash Equivalents are received in connection with such
sale, conveyance, transfer or other disposition or to the extent any cash or
Cash Equivalents received in connection with such sale, conveyance, transfer or
other disposition are not dividended, distributed or otherwise paid to the
Issuer or any of its Restricted Subsidiaries;

     

    (i)           foreclosures
on assets not constituting Collateral;

     

    (j)           sales
of accounts receivable, or participations therein, in connection with any
Receivables Facility for the benefit of the Issuer or any of its Restricted
Subsidiaries;

     

    (k)           any
financing transaction with respect to property built or acquired by the Issuer
or any Restricted Subsidiary after the Issue Date, including Sale and Lease-Back
Transactions and asset securitizations permitted by this Indenture;

     

    (l)           [Intentionally
Omitted];

     

    (m)           except
in the case of a disposition of Collateral, sales, transfers and other
dispositions (i) of Investments in joint ventures to the extent required by, or
made pursuant to, customary buy/sell or put/call arrangements between the joint
venture parties set forth in joint venture arrangements and similar binding
arrangements or (ii) to joint ventures in connection with the dissolution or
termination of a joint venture to the extent required pursuant to joint venture
and similar arrangements;

     

    (n)           [Intentionally
Omitted];

     

    (o)           [Intentionally
Omitted];

     

    (p)           [Intentionally
Omitted];

     

    (q)           any
Casualty Event; provided the net
proceeds therefrom are deemed to be Net Proceeds and are applied in accordance
with Section 4.10 hereof or the Issuer or such Restricted Subsidiary delivers to
the Trustee a Restoration Certificate with respect to plans to invest (and
reinvests within 450 days from the date of receipt of the Net
Proceeds);

     

    (r)           the
execution of (or amendment to), settlement of or unwinding of any Hedging
Obligation in the ordinary course of business;

     

    (s)           any
disposition of mineral rights (other than coal and lignite mineral rights);
provided the
net proceeds therefrom are deemed to be Net Proceeds and are applied in
accordance with Section 4.10 hereof;

     

    (t)           any
sale, transfer or other disposal of any real property that is (i) primarily used
or intended to be used for mining which has either been reclaimed, or has not
been used for mining in a manner which requires reclamation, and in either case
has been determined by the Issuer not to be necessary for use for mining, (ii)
used as buffer land, but no longer serves such purpose or its use is restricted
such that it will continue to be buffer land, or (iii) was acquired in
connection with power generation facilities, but has been determined by the
Issuer to no longer be commercially suitable for such purpose;

     

    (u)           [Intentionally
Omitted];

     

    (v)           dispositions of power,
capacity, heat rate, renewable energy credits, waste by-products, energy,
electricity, coal and lignite, oil and other petroleum based liquids, emissions
and other environmental credits, ancillary services, fuel (including all forms
of nuclear fuel and natural gas) and other related assets or products of
services, including assets related to trading activities or the sale of
inventory or contracts related to any of the foregoing, in each case in the
ordinary course of business;

     

    (w)           [Intentionally
Omitted];

     

    (x)           any
disposition of assets in connection with salvage activities; provided the net
proceeds therefrom are deemed to be Net Proceeds and are applied in accordance
with Section 4.10 hereof; and

     

    (y)           any
sale, transfer or other disposition of any assets required by any Government
Authority; provided the net
proceeds therefrom are deemed to be Net Proceeds and are applied in accordance
with Section 4.10 hereof.

     

    "Asset Sale Cash Collateral
Account" means a segregated account pledged under the Security Documents
that is (i) subject to a perfected security interest for the benefit of the
holders of Secured Lien Debt, (ii) under the sole control of the Collateral
Trustee, and (iii) free from all other Liens (other than Liens permitted to be
placed on the Collateral pursuant to Section 4.12(b) of this
Indenture).

     

    “Asset Sale Offer” has
the meaning set forth in Section 4.10(d) hereof.

     

    “Bankruptcy Code”
means Title 11 of the United States Code, as amended.

     

    “Bankruptcy Law” means
the Bankruptcy Code and any similar federal, state or foreign law for the relief
of debtors.

     

    “Board of Directors”
means:

     

    (1)           with
respect to a corporation, the board of directors of the corporation or any
committee thereof duly authorized to act on behalf of such board;

     

    (2)           with
respect to a partnership, the board of directors of the general partner of the
partnership;

     

    (3)           with
respect to a limited liability company, the managing member or members or any
controlling committee of managing members thereof; and

     

    (4)           with
respect to any other Person, the board or committee of such Person serving a
similar function.

     

    “broker-dealer” has
the meaning set forth in the Registration Rights Agreement.

     

    “Business Day” means
each day which is not a Legal Holiday.

     

    “Capital Stock”
means:

     

    (1)           in
the case of a corporation, corporate stock;

     

    (2)           in
the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate
stock;

     

    (3)           in
the case of a partnership or limited liability company, partnership or
membership interests (whether general or limited); and

     

    (4)           any
other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing
Person.

     

    “Capitalized Lease
Obligation” means, at the time any determination thereof is to be made,
the amount of the liability in respect of a capital lease that would at such
time be required to be capitalized and reflected as a liability on a balance
sheet (excluding the footnotes thereto) in accordance with GAAP; provided that any
obligations existing on the Issue Date (i) that were not included on the balance
sheet of the Issuer as capital lease obligations and (ii) that are subsequently
recharacterized as capital lease obligations due to a change in accounting
treatment shall for all purposes not be treated as Capitalized Lease
Obligations.

     

    “Capitalized Software
Expenditures” means, for any period, the aggregate of all expenditures
(whether paid in cash or accrued as liabilities) by a Person and its Restricted
Subsidiaries during such period in respect of purchased software or internally
developed software and software enhancements that, in conformity with GAAP, are
or are required to be reflected as capitalized costs on the consolidated balance
sheet of a Person and its Restricted Subsidiaries.

     

    “Cash Equivalents”
means:

     

    (1)           United
States dollars;

     

    (2)           euros
or any national currency of any participating member state of the EMU or such
local currencies held by the Issuer and its Restricted Subsidiaries from time to
time in the ordinary course of business;

     

    (3)           securities
issued or directly and fully and unconditionally guaranteed or insured by the
U.S. government (or any agency or instrumentality thereof the securities of
which are unconditionally guaranteed as a full faith and credit obligation of
the U.S. government) with maturities, unless such securities are deposited to
defease Indebtedness, of 24 months or less from the date of
acquisition;

     

    (4)           certificates
of deposit, time deposits and eurodollar time deposits with maturities of one
year or less from the date of acquisition, bankers’ acceptances with maturities
not exceeding one year and overnight bank deposits, in each case with any
commercial bank having capital and surplus of not less than $500.0 million
in the case of U.S. banks and $100.0 million (or the U.S. dollar equivalent as
of the date of determination) in the case of non-U.S. banks;

     

    (5)           repurchase
obligations for underlying securities of the types described in clauses (3) and
(4) entered into with any financial institution meeting the qualifications
specified in clause (4) above;

     

    (6)           commercial
paper rated at least P-1 by Moody’s or at least A-1 by S&P and in each case
maturing within 24 months after the date of creation thereof;

     

    (7)           marketable
short-term money market and similar securities having a rating of at least P-2
or A-2 from either Moody’s or S&P, respectively (or, if at any time neither
Moody’s nor S&P shall be rating such obligations, an equivalent rating from
another Rating Agency) and in each case maturing within 24 months after the
date of creation thereof;

     

    (8)           investment
funds investing 95% of their assets in securities of the types described in
clauses (1) through (7) above;

     

    (9)           readily
marketable direct obligations issued by any state, commonwealth or territory of
the United States or any political subdivision or taxing authority thereof
having an Investment Grade Rating from either Moody’s or S&P with maturities
of 24 months or less from the date of acquisition;

     

    (10)           Indebtedness
or Preferred Stock issued by Persons with a rating of A or higher from S&P
or A2 or higher from Moody’s with maturities of 24 months or less from the
date of acquisition; and

     

    (11)           Investments
with average maturities of 24 months or less from the date of acquisition in
money market funds rated AAA- (or the equivalent thereof) or better by S&P
or Aaa3 (or the equivalent thereof) or better by Moody’s.

     

    Notwithstanding
the foregoing, Cash Equivalents shall include amounts denominated in currencies
other than those set forth in clauses (1) and (2) above; provided that such
amounts are converted into any currency listed in clauses (1) and (2) as
promptly as practicable and in any event within ten Business Days following the
receipt of such amounts.

     

    “Casualty Event” means
any taking under power of eminent domain or similar proceeding and any insured
loss; provided
that any such taking or similar proceeding or insured loss that results in Net
Proceeds of less than $75.0 million shall not be deemed a Casualty
Event.

     

    “Change of Control”
means the occurrence of any of the following:

     

     (1)           the
sale, lease or transfer, in one or a series of related transactions, of all or
substantially all of the assets of the Issuer and its Subsidiaries, taken as a
whole, to any Person other than a Permitted Holder, other than (A) the first to
occur of a Permitted Asset Transfer made in accordance with Section 4.16 hereof
and a TCEH Transfer made in accordance with Section 4.17 hereof (excluding a
Permitted Asset Transfer consisting of a merger of EFIH with and into the Issuer
for the purpose of determining the first to occur of a Permitted Asset Transfer
or a TCEH Transfer), (B) a transaction meeting the requirements of the proviso
to clause (3) of this definition of “Change of Control” and (C) any foreclosure
on the Collateral;

     

     (2)           
the Issuer becomes aware (by way of a report or any other filing pursuant to
Section 13(d) of the Exchange Act, proxy, vote, written notice or otherwise) of
the acquisition by any Person or group (within the meaning of Section 13(d)(3)
or Section 14(d)(2) of the Exchange Act or any successor provision), including
any group acting for the purpose of acquiring, holding or disposing of
securities (within the meaning of Rule 13d-5(b)(1) under the Exchange Act or any
successor provision), other than the Permitted Holders, in a single transaction
or in a related series of transactions, by way of merger, consolidation or other
business combination or purchase of beneficial ownership (within the meaning of
Rule 13d-3 under the Exchange Act, or any successor provision) of 50% or more of
the total voting power of the Voting Stock of the Issuer or any of its direct or
indirect parent companies; or

     

    (3)           
the sale, transfer, conveyance or other disposition, in one or a series of
related transactions, of all or substantially all of the assets of EFIH and its
Subsidiaries, taken as a whole, or all or substantially all of the Collateral or
Oncor-related Assets, other than a Permitted Asset Transfer made in accordance
with Section 4.16 hereof; provided, however, that a
transaction that would otherwise constitute a Change of Control pursuant to this
clause (3) shall not constitute a Change of Control if:

     

    (a)           the
consideration received in respect of such transaction (i) is received by EFIH or
an Oncor Subsidiary or Successor Oncor Business, as the case may be, (ii)
consists of Capital Stock of a Person in a Similar Oncor Business that (A) would
become a Subsidiary of EFIH or such Oncor Subsidiary or Successor Oncor Business
or (B) is a joint venture in which EFIH or such Oncor Subsidiary or Successor
Oncor Business would have a significant equity interest (as determined by the
Issuer in good faith), (iii) is at least equal to the fair market value (as
determined by the Issuer in good faith) of the assets sold, transferred,
conveyed or otherwise disposed of, and (iv) if received by EFIH, shall be
concurrently pledged as Collateral for the benefit of the Holders of the Notes
and the holders of the other Secured Debt Obligations;

     

    (b)           immediately
after such transaction no Default exists;

     

    (c)           immediately
after giving pro
forma effect to such transaction and any related financing transactions
(including, without limitation, any transaction the proceeds of which are
applied to reduce the Indebtedness of the Issuer or EFIH) as if the same had
occurred at the beginning of the applicable four-quarter period,
either:

     

    (i)           the
Issuer would be permitted to incur at least $1.00 of additional Indebtedness
pursuant to the Fixed Charge Coverage Ratio test set forth in clause (i) of
Section 4.09(a) hereof; or

     

    (ii)           
such Fixed Charge Coverage Ratio for the Issuer and its Restricted Subsidiaries
would be greater than such Fixed Charge Coverage Ratio for the Issuer and its
Restricted Subsidiaries immediately prior to such transaction; and

     

    (d)           the
rating on the Notes shall not have been downgraded by two or more of the Rating
Agencies (or, if the Notes are rated by only one Rating Agency at the time of
the first notice of such transaction, such Rating Agency) during the period
commencing 30 days prior to the first public notice of the occurrence of such
transaction or the intention of the Issuer or any Subsidiary thereof to effect
such transaction and ending on the date 60 after such public notice relative to
the rating at the start of such period.

     

    “Class” means (1) in
the case of Parity Lien Debt, every Series of Parity Lien Debt, taken together,
and (2) in the case of Junior Lien Debt, every Series of Junior Lien Debt, taken
together.

     

    “Clearstream” means
Clearstream Banking, Société Anonyme, and its successors.

     

    “Closing Date” means
October 10, 2007.

     

    “Code” means the
Internal Revenue Code of 1986, as amended, or any successor
thereto.

     

    “Collateral” means all
assets or property, now owned or hereafter acquired by EFIH, to the extent such
assets or property are pledged or assigned or purported to be pledged or
assigned, or are required to be pledged or assigned under the Security Documents
to the Collateral Trustee, together with the proceeds thereof.

     

    “Collateral Asset Sale
Offer” has the meaning set forth under Section 4.10(h)
hereof.

     

    “Collateral Excess
Proceeds” has the meaning set forth under Section 4.10(h)
hereof.

     

    “Collateral Posting
Facility” means any senior cash posting credit facility, the size of
which is capped by the mark-to-market loss, inclusive of any unpaid settlement
amounts, of TCEH and its subsidiaries on a hypothetical portfolio of commodity
swaps, forwards and futures transactions that correspond to or replicate all or
a portion of actual transactions by TCEH and its subsidiaries that are
outstanding on, or entered into from time to time on or after, the Closing
Date.

     

    “Collateral Trust
Agreement” means the Collateral Trust Agreement, dated as of November 16,
2009, among EFIH, the trustees for the 9.75% Notes and the EFIH Notes, any other
Parity Lien Debt Representatives from time to time party thereto, any Junior
Lien Debt Representatives from time to time party thereto and the Collateral
Trustee.

     

    “Collateral Trustee”
means The Bank of New York Mellon Trust Company, N.A., in its capacity as
Collateral Trustee under the Collateral Trust Agreement, together with its
successors in such capacity.

     

    “Collateral Trustee’s
Liens” means a Lien granted to the Collateral Trustee as security for
Secured Debt Obligations.

     

    “Consolidated Depreciation
and Amortization Expense” means with respect to any Person for any
period, the total amount of depreciation and amortization expense, including the
amortization of deferred financing fees, nuclear fuel costs, depletion of coal
or lignite reserves, debt issuance costs, commissions, fees and expenses and
Capitalized Software Expenditures, of such Person and its Restricted
Subsidiaries for such period on a consolidated basis and otherwise determined in
accordance with GAAP.

     

    “Consolidated Interest
Expense” means, with respect to any Person for any period, without
duplication, the sum of:

     

    (1)           consolidated
interest expense of such Person and its Restricted Subsidiaries for such period,
to the extent such expense was deducted (and not added back) in computing
Consolidated Net Income (including (a) amortization of original issue
discount resulting from the issuance of Indebtedness at less than par,
(b) all commissions, discounts and other fees and charges owed with respect
to letters of credit, bankers’ acceptances or any Collateral Posting Facility or
similar facilities, (c) non-cash interest payments (but excluding any
non-cash interest expense attributable to the movement in the mark to market
valuation of Hedging Obligations or other derivative instruments pursuant to
GAAP), (d) the interest component of Capitalized Lease Obligations, and
(e) net payments, if any, pursuant to interest rate Hedging Obligations
with respect to Indebtedness, and excluding (u) accretion of asset
retirement obligations and accretion or accrual of discounted liabilities not
constituting Indebtedness, (v) any expense resulting from the discounting
of the Existing Notes or other Indebtedness in connection with the application
of purchase accounting, (w) any Additional Interest and any comparable
“additional interest” imposed in connection with failure to register any other
securities, (x) amortization of reacquired Indebtedness, deferred financing
fees, debt issuance costs, commissions, fees and expenses, (y) any
expensing of bridge, commitment and other financing fees and
(z) commissions, discounts, yield and other fees and charges (including any
interest expense) related to any Receivables Facility); plus

     

    (2)           interest
on Indebtedness of another Person that is guaranteed by EFIH solely to the
extent such interest is actually paid by EFIH under such guarantee; plus

     

    (3)           consolidated
capitalized interest of such Person and its Restricted Subsidiaries for such
period, whether paid or accrued; less

     

    (4)           interest
income of such Person and its Restricted Subsidiaries for such
period.

     

    For
purposes of this definition, interest on a Capitalized Lease Obligation shall be
deemed to accrue at an interest rate reasonably determined by such Person to be
the rate of interest implicit in such Capitalized Lease Obligation in accordance
with GAAP.

     

    “Consolidated Leverage
Ratio” as of any date of determination, means the ratio of
(x) Consolidated Total Indebtedness computed as of the end of the most
recent fiscal quarter for which internal financial statements are available
immediately preceding the date on which such event for which such calculation is
being made shall occur to (y) the aggregate amount of EBITDA of the Issuer
for the period of the most recently ended four full consecutive fiscal quarters
for which internal financial statements are available immediately preceding the
date on which such event for which such calculation is being made shall occur,
in each case with such pro forma adjustments to
Consolidated Total Indebtedness and EBITDA as are appropriate and consistent
with the pro forma adjustment
provisions set forth in the definition of “Fixed Charge Coverage
Ratio.”

     

    “Consolidated Net
Income” means, with respect to any Person for any period, the aggregate
of the Net Income of such Person for such period, on a consolidated basis, and
otherwise determined in accordance with GAAP; provided, however, that,
without duplication,

     

    (1)           any
after-tax effect of extraordinary, non-recurring or unusual gains or losses
(less all fees and expenses relating thereto) or expenses (including Transaction
fees and expenses to the extent incurred on or prior to December 31, 2008),
severance, relocation costs, consolidation and closing costs, integration and
facilities opening costs, business optimization costs, transition costs,
restructuring costs, signing, retention or completion bonuses, and curtailments
or modifications to pension and post-retirement employee benefit plans shall be
excluded;

     

    (2)           the
cumulative effect of a change in accounting principles during such period shall
be excluded;

     

    (3)           any
after-tax effect of income (loss) from disposed, abandoned or discontinued
operations and any net after-tax gains or losses on disposal of disposed,
abandoned, transferred, closed or discontinued operations shall be
excluded;

     

    (4)           any
after-tax effect of gains or losses (less all fees and expenses relating
thereto) attributable to asset dispositions or abandonments other than in the
ordinary course of business, as determined in good faith by the Issuer, shall be
excluded;

     

    (5)           the
Net Income for such period of any Person that is (a) not a Subsidiary, (b) an
Unrestricted Subsidiary or (c) accounted for by the equity method of accounting,
shall be excluded; provided that
Consolidated Net Income of the Issuer shall be increased by the amount of
dividends or distributions or other payments that are actually paid in cash (or
to the extent converted into cash) to the referent Person or a Restricted
Subsidiary thereof in respect of such period, other than dividends,
distributions or other payments from the Oncor Subsidiaries or any Successor
Oncor Business (i) from the proceeds of sales of Oncor-related Assets made after
the Secured Notes Issue Date and (ii) consisting of Oncor-related Assets made
after the Secured Notes Issue Date;

     

    (6)           solely
for the purpose of determining the amount available for Restricted Payments
under clause (3)(a) of Section 4.07(a) hereof, the Net Income for such period of
any Restricted Subsidiary (other than any Guarantor) shall be excluded to the
extent that the declaration or payment of dividends or similar distributions by
that Restricted Subsidiary of its Net Income is not at the date of determination
wholly permitted without any prior governmental approval (which has not been
obtained) or, directly or indirectly, by the operation of the terms of its
charter or any agreement, instrument, judgment, decree, order, statute, rule, or
governmental regulation applicable to that Restricted Subsidiary or its
stockholders, unless such restriction with respect to the payment of dividends
or similar distributions has been legally waived or is otherwise permitted by
Section 4.08 hereof; provided that
Consolidated Net Income of the Issuer shall be increased by the amount of
dividends or other distributions or other payments actually paid in cash (or to
the extent converted into cash) or Cash Equivalents to the Issuer or a
Restricted Subsidiary thereof in respect of such period, to the extent not
already included therein;

     

    (7)           effects
of all adjustments (including the effects of such adjustments pushed down to the
Issuer and its Restricted Subsidiaries) in such Person’s consolidated financial
statements pursuant to GAAP resulting from the application of purchase
accounting in relation to the Transactions or any consummated acquisition or the
amortization or write-off of any amounts thereof, net of taxes, shall be
excluded;

     

    (8)           any
net after-tax effect of income (loss) attributable to the early extinguishment
of Indebtedness (other than Hedging Obligations) shall be excluded;

     

    (9)           any
impairment charge or asset write-off, including, without limitation, impairment
charges or asset write-offs related to intangible assets, long-lived assets or
investments in debt and equity securities, in each case, pursuant to GAAP and
the amortization of intangibles arising pursuant to GAAP shall be
excluded;

     

    (10)           any
non-cash compensation expense recorded from grants of stock appreciation or
similar rights, stock options, restricted stock or other rights, and any cash
charges associated with the rollover, acceleration or payout of Equity Interests
by management of the Issuer or any of its direct or indirect parent companies in
connection with the Transactions, shall be excluded;

     

    (11)           any
fees and expenses incurred during such period, or any amortization thereof for
such period, in connection with any acquisition, Investment, Asset Sale,
issuance or repayment of Indebtedness, issuance of Equity Interests, refinancing
transaction or amendment or modification of any debt instrument (in each case,
including any such transaction consummated prior to the Closing Date and any
such transaction undertaken but not completed) and any charges or non-recurring
merger costs incurred during such period as a result of any such transaction
shall be excluded;

     

    (12)           accruals
and reserves that are established or adjusted within twelve months after the
Closing Date that are so required to be established as a result of the
Transactions in accordance with GAAP, or changes as a result of adoption or
modification of accounting policies, shall be excluded;

     

    (13)           to
the extent covered by insurance and actually reimbursed, or, so long as the
Issuer has made a determination that there exists reasonable evidence that such
amount shall in fact be reimbursed by the insurer and only to the extent that
such amount is (a) not denied by the applicable carrier in writing within
180 days and (b) in fact reimbursed within 365 days of the date of such
evidence (with a deduction for any amount so added back to the extent not so
reimbursed within 365 days), expenses with respect to liability or casualty
events or business interruption shall be excluded;

     

    (14)           any
net after-tax effect of unrealized income (loss) attributable to Hedging
Obligations or other derivative instruments shall be excluded; and

     

    (15)           any
benefit from any fair market value of any contract as recorded on the balance
sheet at the time of the Transactions shall be excluded.

     

    Notwithstanding
the foregoing, for the purpose of Section 4.07 hereof only (other than clause
(3)(d) of Section 4.07(a) hereof), there shall be excluded from Consolidated Net
Income any income arising from any sale or other disposition of Restricted
Investments made by the Issuer and its Restricted Subsidiaries, any repurchases
and redemptions of Restricted Investments from the Issuer and its Restricted
Subsidiaries, any repayments of loans and advances which constitute Restricted
Investments by the Issuer or any of its Restricted Subsidiaries, any sale of the
stock of an Unrestricted Subsidiary or any distribution or dividend from an
Unrestricted Subsidiary, in each case only to the extent such amounts increase
the amount of Restricted Payments permitted under clause (3)(d) of Section
4.07(a) hereof.

     

    “Consolidated Secured Debt
Ratio” means, as of any date of determination, the ratio of
(x) Consolidated Secured Indebtedness computed as of the end of the most
recent fiscal quarter for which internal financial statements are available
immediately preceding the date on which such event for which such calculation is
being made shall occur to (y) the aggregate amount of EBITDA of the Issuer
for the period of the most recently ended four full consecutive fiscal quarters
for which internal financial statements are available immediately preceding the
date on which such event for which such calculation is being made shall occur,
in each case with such pro forma adjustments to
Consolidated Secured Indebtedness and EBITDA as are appropriate and consistent
with the pro forma adjustment
provisions set forth in the definition of “Fixed Charge Coverage
Ratio.”

     

    “Consolidated Secured
Indebtedness” means Consolidated Total Indebtedness secured by a Lien on
any assets of the Issuer or any of its Restricted Subsidiaries.

     

    “Consolidated Total
Indebtedness” means, as at any date of determination, an amount equal to
(1) the aggregate amount of all outstanding Indebtedness of the Issuer and
its Restricted Subsidiaries on a consolidated basis consisting of Indebtedness
for borrowed money, debt obligations evidenced by promissory notes and similar
instruments, letters of credit (only to the extent of any unreimbursed drawings
thereunder) and Obligations in respect of Capitalized Lease Obligations, plus
(2) the aggregate amount of all outstanding Disqualified Stock of the
Issuer and all Disqualified Stock and Preferred Stock of its Restricted
Subsidiaries on a consolidated basis, with the amount of such Disqualified Stock
and Preferred Stock equal to the greater of their respective voluntary or
involuntary liquidation preferences and maximum fixed repurchase prices, in each
case determined on a consolidated basis in accordance with GAAP, less (3) the
aggregate amount of all Unrestricted Cash and less (4) all Deposit L/C Loans and
Incremental Deposit L/C Loans outstanding on such date of
determination.  For purposes hereof, the “maximum fixed repurchase
price” of any Disqualified Stock or Preferred Stock that does not have a
fixed repurchase price shall be calculated in accordance with the terms of such
Disqualified Stock or Preferred Stock as if such Disqualified Stock or Preferred
Stock were purchased on any date on which Consolidated Total Indebtedness shall
be required to be determined, and if such price is based upon, or measured by,
the fair market value of such Disqualified Stock or Preferred Stock, such fair
market value shall be determined reasonably and in good faith by the
Issuer.

     

    “Contingent
Obligations” means, with respect to any Person, any obligation of such
Person guaranteeing any leases, dividends or other obligations that do not
constitute Indebtedness (“primary obligations”)
of any other Person (the “primary obligor”) in
any manner, whether directly or indirectly, including, without limitation, any
obligation of such Person, whether or not contingent,

     

    (1)           to
purchase any such primary obligation or any property constituting direct or
indirect security therefor,

     

    (2)           to
advance or supply funds

     

    (a)           for
the purchase or payment of any such primary obligation, or

     

    (b)           to
maintain working capital or equity capital of the primary obligor or otherwise
to maintain the net worth or solvency of the primary obligor, or

     

    (3)           to
purchase property, securities or services primarily for the purpose of assuring
the owner of any such primary obligation of the ability of the primary obligor
to make payment of such primary obligation against loss in respect
thereof.

     

    “Corporate Trust Office of
the Trustee” shall be at the first address of the Trustee specified in
Section 13.02 hereof or such other address as to which the Trustee may give
notice to the Holders and the Issuer.

     

    “Covered Commodity”
means any energy, electricity, generation capacity, power, heat rate,
congestion, natural gas, nuclear fuel (including enrichment and conversion),
diesel fuel, fuel oil, other petroleum-based liquids, coal, lignite, weather,
emissions and other environmental credits, waste by-products, renewable energy
credit, or any other energy related commodity or service (including ancillary
services and related risks (such as location basis)).

     

    “Credit Facilities”
means, with respect to the Issuer or any of its Restricted Subsidiaries, one or
more debt facilities, including the TCEH Senior Secured Facilities or other
financing arrangements (including, without limitation, commercial paper
facilities or indentures) providing for revolving credit loans, term loans,
letters of credit or other long-term indebtedness, including any notes,
mortgages, guarantees, collateral documents, instruments and agreements executed
in connection therewith, and any amendments, supplements, modifications,
extensions, renewals, restatements or refundings thereof and any indentures or
credit facilities or commercial paper facilities that replace, refund or
refinance any part of the loans, notes, other credit facilities or commitments
thereunder, including any such replacement, refunding or refinancing facility or
indenture that increases the amount permitted to be borrowed thereunder or
alters the maturity thereof (provided that such
increase in borrowings is permitted under Section 4.09 hereof) or adds
Restricted Subsidiaries as additional borrowers or guarantors thereunder and
whether by the same or any other agent, lender or group of lenders.

     

    “Custodian” means the
Trustee, as custodian with respect to the Notes in global form, or any successor
entity thereto.

     

    “Default” means any
event that is, or with the passage of time or the giving of notice or both would
be, an Event of Default.

     

    “Definitive Note”
means a certificated Note registered in the name of the Holder thereof and
issued in accordance with Section 2.06 hereof, substantially in the form of
Exhibit A
hereto except that such Note shall not bear the Global Note Legend and
shall not have the “Schedule of Exchanges of Interests in the Global Note”
attached thereto.

     

    “Depositary” means,
with respect to the Notes issuable or issued in whole or in part in global form,
the Person specified in Section 2.03 hereof as the Depositary with respect
to the Notes, and any and all successors thereto appointed as depositary
hereunder and having become such pursuant to the applicable provision of this
Indenture.

     

    “Deposit L/C Loan”
means Deposit L/C Loans under, and as defined in, the TCEH Senior Secured
Facilities.

     

    “Designated Non-cash
Consideration” means the fair market value of non-cash consideration
received by the Issuer or a Restricted Subsidiary in connection with an Asset
Sale that is so designated as Designated Non-cash Consideration pursuant to an
Officer’s Certificate, setting forth the basis of such valuation, executed by
the principal financial officer of the Issuer, less the amount of cash or Cash
Equivalents received in connection with a subsequent sale of or collection on
such Designated Non-cash Consideration.

     

    “Designated Preferred
Stock” means Preferred Stock of the Issuer or any parent corporation
thereof (in each case other than Disqualified Stock) that is issued for cash
(other than to a Restricted Subsidiary or an employee stock ownership plan or
trust established by the Issuer or any of its Subsidiaries) and is so designated
as Designated Preferred Stock, pursuant to an Officer’s Certificate executed by
the principal financial officer of the Issuer or the applicable parent
corporation thereof, as the case may be, on the issuance date thereof, the cash
proceeds of which are excluded from the calculation set forth in clause (3) of
Section 4.07(a) hereof.

     

    “Disqualified Stock”
means, with respect to any Person, any Capital Stock of such Person which, by
its terms, or by the terms of any security into which it is convertible or for
which it is putable or exchangeable, or upon the happening of any event, matures
or is mandatorily redeemable (other than solely as a result of a change of
control or asset sale) pursuant to a sinking fund obligation or otherwise, or is
redeemable at the option of the holder thereof (other than solely as a result of
a change of control or asset sale), in whole or in part, in each case prior to
the date 91 days after the earlier of the maturity date of the Notes or the date
the Notes are no longer outstanding; provided, however, that if such
Capital Stock is issued to any plan for the benefit of employees of the Issuer
or its Subsidiaries or by any such plan to such employees, such Capital Stock
shall not constitute Disqualified Stock solely because it may be required to be
repurchased by the Issuer or its Subsidiaries in order to satisfy applicable
statutory or regulatory obligations.

     

    “EBITDA” means, with
respect to any Person for any period, the Consolidated Net Income of such Person
for such period

     

    (1)           increased
(without duplication) by:

     

    (a)           provision
for taxes based on income or profits or capital gains, including, without
limitation, foreign, federal, state, franchise, excise, value-added and similar
taxes and foreign withholding taxes (including penalties and interest related to
such taxes or arising from tax examinations) of such Person paid or accrued
during such period, deducted (and not added back) in computing Consolidated Net
Income; plus

     

    (b)           Fixed
Charges of such Person for such period (including (x) net losses on Hedging
Obligations or other derivative instruments entered into for the purpose of
hedging interest rate risk and (y) costs of surety bonds in connection with
financing activities, in each case, to the extent included in Fixed Charges),
together with items excluded from the definition of “Consolidated Interest
Expense” pursuant to clauses (1)(u), (v), (w), (x), (y) and (z) of the
definition thereof, and, in each such case, to the extent the same were deducted
(and not added back) in calculating such Consolidated Net Income; plus

     

    (c)           Consolidated
Depreciation and Amortization Expense of such Person for such period to the
extent the same was deducted (and not added back) in computing Consolidated Net
Income; plus

     

    (d)           any
fees, expenses or charges (other than depreciation or amortization expense)
related to any Equity Offering, Permitted Investment, acquisition, disposition,
recapitalization or the incurrence of Indebtedness permitted to be incurred by
such Person and its Restricted Subsidiaries under this Indenture (including a
refinancing transaction or amendment or other modification of any debt
instrument) (whether or not successful), including (i) such fees, expenses
or charges related to the offering of the Initial Notes, the exchange offers
pursuant to which the 9.75% Notes and EFIH Notes were issued, the offering of
any Additional Notes or Exchange Notes or any additional 9.75% Notes or EFIH
Notes, the offerings of the Existing Notes and any interim bridge facilities
related thereto and the TCEH Senior Secured Facilities and any Receivables
Facility, (ii) any amendment or other modification of the Notes, (iii) any
such transaction consummated prior to the Closing Date and any such transaction
undertaken but not completed and (iv) any charges or non-recurring merger costs
as a result of any such transaction, in each case, deducted (and not added back)
in computing Consolidated Net Income; plus

     

    (e)           the
amount of any restructuring charge or reserve deducted (and not added back) in
such period in computing Consolidated Net Income, including any costs incurred
in connection with acquisitions after the Closing Date, costs related to the
closure and/or consolidation of facilities; plus

     

    (f)           any
other non-cash charges, including any write-offs or write-downs, reducing
Consolidated Net Income for such period (provided that if any
such non-cash charges represent an accrual or reserve for potential cash items
in any future period, the cash payment in respect thereof in such future period
shall be subtracted from EBITDA to such extent, and excluding amortization of a
prepaid cash item that was paid in a prior period); plus

     

    (g)           the
amount of any minority interest expense consisting of Subsidiary income
attributable to minority equity interests of third parties in any non-Wholly
Owned Subsidiary deducted (and not added back) in such period in calculating
Consolidated Net Income; plus

     

    (h)           the
amount of management, monitoring, consulting and advisory fees and related
indemnities and expenses paid in such period to the Investors to the extent
otherwise permitted under Section 4.11 hereof and deducted (and not added back)
in calculating Consolidated Net Income; plus

     

    (i)           the
amount of net cost savings projected by the Issuer in good faith to be realized
as a result of specified actions taken or to be taken prior to or during such
period (calculated on a pro forma basis as though
such cost savings had been realized on the first day of such period and added to
EBITDA until fully realized), net of the amount of actual benefits realized
during such period from such actions; provided that
(w) such cost savings are reasonably identifiable and factually
supportable, (x) such actions have been taken or are to be taken within 12
months after the date of determination to take such action and some portion of
the benefit is expected to be realized within 12 months of taking such action,
(y) no cost savings shall be added pursuant to this clause (i) to the
extent duplicative of any expenses or charges relating to such cost savings that
are included in clause (e) above with respect to such period and (z) the
aggregate amount of cost savings added pursuant to this clause (i) shall
not exceed $150.0 million for any four consecutive quarter period (which
adjustments may be incremental to pro forma adjustments
made pursuant to the second paragraph of the definition of “Fixed Charge
Coverage Ratio”); plus

     

    (j)           the
amount of loss on sales of receivables and related assets to the Receivables
Subsidiary in connection with a Receivables Facility deducted (and not added
back) in calculating Consolidated Net Income; plus

     

    (k)           any
costs or expense incurred by the Issuer or a Restricted Subsidiary pursuant to
any management equity plan or stock option plan or any other management or
employee benefit plan or agreement or any stock subscription or shareholder
agreement, to the extent that such cost or expenses are funded with cash
proceeds contributed to the capital of the Issuer or net cash proceeds of an
issuance of Equity Interests (other than Disqualified Stock) of the Issuer (or
any direct or indirect parent thereof) solely to the extent that such net cash
proceeds are excluded from the calculation set forth in clause (3) of Section
4.07(a) hereof; plus

     

    (l)           Expenses
Relating to a Unit Outage; provided that the
only Expenses Relating to a Unit Outage that may be included in EBITDA shall be,
without duplication (i) up to $250.0 million per fiscal year of Expenses
Relating to a Unit Outage incurred within the first 12 months after any planned
or unplanned outage of any Unit by reason of any action by any regulatory body
or other Government Authority or to comply with any applicable law and (ii) up
to $100.0 million per fiscal year of Expenses Relating to a Unit Outage incurred
within the first 12 months after any planned outage of any Unit for purposes of
expanding or upgrading such Unit; plus

     

    (m)           cash
receipts (or any netting arrangements resulting in increased cash receipts) not
added in arriving at EBITDA or Consolidated Net Income in any period to the
extent the non-cash gains relating to such receipts were deducted in the
calculation of EBITDA pursuant to paragraph (2) below for any previous period
and not added; and

     

    (2)           decreased
by (without duplication) (a) non-cash gains increasing Consolidated Net Income
of such Person for such period, excluding any non-cash gains to the extent they
represent the reversal of an accrual or reserve for a potential cash item that
reduced EBITDA in any prior period,  (b) cash expenditures (or any
netting arrangements resulting in increased cash expenditures) not deducted in
arriving at EBITDA or Consolidated Net Income in any period to the extent
non-cash losses relating to such expenditures were added in the calculation of
EBITDA pursuant to paragraph (1) above for any previous period and not deducted,
and (c) the amount of any minority interest income consisting of Subsidiary
losses attributable to minority equity interests of third parties in any
non-Wholly Owned Subsidiary to the extent such minority interest income is
included in Consolidated Net Income.

     

    “EFCH” means Energy
Future Competitive Holdings Company.

     

    “EFH Senior Interim
Facility” means the interim loan agreement, dated as of the Closing Date
by and among the Issuer, as borrower, EFCH and EFIH, as guarantors, the lenders
party thereto in their capacities as lenders thereunder and Morgan Stanley
Senior Funding, Inc., as Administrative Agent, including any guarantees,
instruments and agreements executed in connection therewith, and any amendments,
supplements, modifications or restatements thereof.

     

    “EFIH” means Energy
Future Intermediate Holding Company LLC.

     

    “EFIH Indenture” means
the indenture, dated as of November 16, 2009, under which the EFIH Notes were
issued.

     

    “EFIH Notes” means the
9.75% Senior Secured Notes due 2019 issued by EFIH and EFIH Finance Inc. under
the EFIH Indenture, including any guarantees thereof.

     

    “EMU” means the
economic and monetary union as contemplated in the Treaty on European
Union.

     

    “Environmental CapEx
Debt” means Indebtedness of the Issuer or any of its Restricted
Subsidiaries incurred for the purpose of financing Environmental Capital
Expenditures.

     

    “Environmental Capital
Expenditures” means capital expenditures deemed necessary by the Issuer
or its Restricted Subsidiaries to comply with, or in anticipation of having to
comply with, Environmental Law or otherwise undertaken voluntarily by the Issuer
or any of its Restricted Subsidiaries in connection with environmental
matters.

     

    “Environmental Law”
means any applicable Federal, state, foreign or local statute, law, rule,
regulation, ordinance, code and rule of common law now or hereafter in effect
and in each case as amended, and any applicable judicial or administrative
interpretation thereof, including any applicable judicial or administrative
order, consent decree or judgment, relating to the environment, human health or
safety or Hazardous Materials.

     

    “equally and ratably”
means, in reference to sharing of Liens or proceeds thereof as between the
holders of Secured Debt Obligations within the same Class after the repayment of
amounts payable to the Collateral Trustee under the Collateral Trust Agreement
and the Parity Lien Representatives (and in the case of Junior Lien Obligations,
Junior Lien Representatives) in accordance with the applicable Secured Debt
Document that such Liens or proceeds:

     

    (1)           shall
be allocated and distributed first to the Secured Debt Representative for each
outstanding Series of Secured Lien Debt within that Class, for the account of
the holders of such Series of Secured Lien Debt, ratably in proportion to the
principal, premium, if any, and interest on, reimbursement obligations
(contingent or otherwise) with respect to letters of credit, if any, outstanding
(whether or not drawings have been made under such letters of credit) forming
part of, and Hedging Obligations to the extent constituting Secured Lien Debt
pursuant to the terms of, each outstanding Series of Secured Lien Debt within
that Class when the allocation or distribution is made; and
thereafter

     

    
      	 	
              (2)

            	
              shall
      be allocated and distributed (if any remain after payment in full of all
      of the principal, premium, if any, and interest on, and reimbursement
      obligations (contingent or otherwise) with respect to letters of credit,
      if any, outstanding (whether or not drawings have been made on such
      letters of credit) forming part of, and Hedging Obligations to the extent
      constituting Secured Indebtedness pursuant to the terms of, each
      outstanding Series of Secured Lien Debt within that Class) to the Secured
      Debt Representative for each outstanding Series of Secured Lien Debt
      within that Class, for the account of the holders of any remaining Secured
      Debt Obligations within that Class, ratably in proportion to the aggregate
      unpaid amount of such remaining Secured Debt Obligations within that Class
      due and demanded (with written notice to the applicable Secured Debt
      Representative and the Collateral Trustee) prior to the date such
      distribution is made.

            

    

     

    “Equity Interests”
means Capital Stock and all warrants, options or other rights to acquire Capital
Stock, but excluding any debt security that is convertible into, or exchangeable
for, Capital Stock.

     

    “Equity Offering”
means any public or private sale of common stock or Preferred Stock of the
Issuer or any of its direct or indirect parent companies (excluding Disqualified
Stock), other than:

     

    (1)           public
offerings with respect to the Issuer’s or any direct or indirect parent
company’s common stock registered on Form S-8;

     

    (2)           issuances
to any Subsidiary of the Issuer; and

     

    (3)           any
such public or private sale that constitutes an Excluded
Contribution.

     

    “ERCOT” means the
Electric Reliability Council of Texas, Inc. or any entity approved to perform
the functions of an independent system operator within the power region that
includes approximately 80% of the electric transmission within the State of
Texas.

     

    “euro” means the
single currency of participating member states of the EMU.

     

    “Euroclear” means
Euroclear Bank S.A./N.V., as operator of the Euroclear system.

     

    “Event of Default” has
the meaning set forth under Section 6.01 hereof.

     

    “Exchange Act” means
the Securities Exchange Act of 1934, as amended, and the rules and regulations
of the SEC promulgated thereunder.

     

    “Exchange Notes” means
any notes issued in exchange for the Notes pursuant to the Registration Rights
Agreement or similar agreement.

     

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

     

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

     

    “Excluded
Contribution” means net cash proceeds, marketable securities or Qualified
Proceeds received by the Issuer after the Closing Date from

     

    (1)           contributions
to its common equity capital, and

     

    (2)           the
sale (other than to a Subsidiary of the Issuer or to any management equity plan
or stock option plan or any other management or employee benefit plan or
agreement of the Issuer) of Capital Stock (other than Disqualified Stock and
Designated Preferred Stock) of the Issuer,

     

    in each
case designated as Excluded Contributions pursuant to an Officer’s Certificate
executed by the principal financial officer of the Issuer on the date such
capital contributions are made or the date such Equity Interests are sold, as
the case may be, which are excluded from the calculation set forth in clause (3)
of Section 4.07(a) hereof.

     

    “Existing Notes”
means

     

    · Energy
Future Holdings Corp. 5.55% Fixed Senior Notes Series P due 2014;

     

    · Energy
Future Holdings Corp. 6.50% Fixed Senior Notes Series Q due 2024;

     

    · Energy
Future Holdings Corp. 6.55% Fixed Senior Notes Series R due 2034;

     

    · Energy
Future Holdings Corp. 10.875% Senior Notes due 2017;

     

    · Energy
Future Holdings Corp. 11.250%/12.000% Senior Toggle Notes due 2017;

     

    · 9.75%
Notes;

     

    · EFIH
Notes;

     

    · EFCH
Floating Rate Junior Subordinated Debentures, Series D due 2037;

     

    · EFCH
8.175% Fixed Junior Subordinated Debentures, Series E due 2037;

     

    · EFCH
9.580% Fixed Notes due in semi-annual installments to 2019;

     

    · EFCH
8.254% Fixed Notes due in quarterly installments to 2021;

     

    · TCEH
Notes;

     

    · TCEH
7.000% Fixed Senior Notes due 2013;

     

    · TCEH
7.460% Fixed Secured Facility Bonds with amortizing payments to
2015;

     

    Pollution
Control Revenue Bonds-Brazos River Authority:

     

    · 5.400%
Fixed Series 1994A due May 1, 2029;

     

    · 7.700%
Fixed Series 1999A due April 1, 2033;

     

    · 6.750%
Fixed Series 1999B due September 1, 2034, remarketing date April 1,
2013;

     

    · 7.700%
Fixed Series 1999C due March 1, 2032;

     

    · 8.250%
Fixed Series 2001A due October 1, 2030;

     

    · 5.750%
Fixed Series 2001C due May 1, 2036, remarketing date November 1,
2011;

     

    · 8.250%
Fixed Series 2001D-1 due May 1, 2033.

     

    · Floating
Series 2001D-2 due May 1, 2033;

     

    · Floating
Taxable Series 2001I due December 1, 2036;

     

    · Floating
Series 2002A due May 1, 2037;

     

    · 6.750%
Fixed Series 2003A due April 1, 2038, remarketing date April 1,
2013;

     

    · 6.300%
Fixed Series 2003B due July 1, 2032;

     

    · 6.750%
Fixed Series 2003C due October 1, 2038;

     

    · 5.400%
Fixed Series 2003D due October 1, 2029, remarketing date October 1,
2014;

     

    · 5.000%
Fixed Series 2006 due March 1, 2041;

     

    Pollution
Control Revenue Bonds-Sabine River Authority of Texas:

     

    · 6.450%
Fixed Series 2000A due June 1, 2021;

     

    · 5.500%
Fixed Series 2001A due May 1, 2022, remarketing date November 1,
2011;

     

    · 5.750%
Fixed Series 2001B due May 1, 2030, remarketing date November 1,
2011;

     

    · 5.200%
Fixed Series 2001C due May 1, 2028;

     

    · 5.800%
Fixed Series 2003A due July 1, 2022;

     

    · 6.150%
Fixed Series 2003B due August 1, 2022; and

     

    Pollution
Control Revenue Bonds-Trinity River Authority of Texas:

     

    · 6.250%
Fixed Series 2000A due May 1, 2028;

     

    in each
case to the extent outstanding on the Issue Date.

     

    “Existing Notes
Indentures” means each of the indentures or other documents containing
the terms of the Existing Notes.

     

    “Expenses Relating to a Unit
Outage” means any expenses or other charges as a result of any outage or
shut-down of any Unit, including any expenses or charges relating to (a)
restarting any such Unit so that it may be placed back in service after such
outage or shut-down, (b) purchases of power, natural gas or heat rate to meet
commitments to sell, or offset a short position in, power, natural gas or heat
rate that would otherwise have been met or offset from production generated by
such Unit during the period of such outage or shut-down, net of the expenses not
in fact incurred (including fuel and other operating expenses) that would have
been incurred absent such outage or shut down and (c) starting up, operating,
maintaining and shutting down any other Unit that would not otherwise have been
operating absent such outage or shut-down, including the fuel and other
operating expenses to the extent in excess of the expenses not in fact incurred
(including fuel and other operating costs) that would have been incurred absent
such outage or shut-down, incurred to start-up, operate, maintain and shut-down
such Unit and that are required during the period of time that the shut-down or
outaged Unit is out of service in order to meet the commitments of such
shut-down or outaged Unit to sell, or offset a short position in, power, natural
gas or heat rate.

     

    “Fitch” means Fitch
Ratings Ltd. and any successor to its rating agency business.

     

    “Fixed Charge Coverage
Ratio” means, with respect to any Person for any period, the ratio of
EBITDA of such Person for such period to the Fixed Charges of such Person for
such period.  In the event that the Issuer or any Restricted
Subsidiary incurs, assumes, guarantees, redeems, retires or extinguishes any
Indebtedness (other than Indebtedness incurred under any revolving credit
facility unless such Indebtedness has been permanently repaid and has not been
replaced) or issues or redeems Disqualified Stock or Preferred Stock subsequent
to the commencement of the period for which the Fixed Charge Coverage Ratio is
being calculated but prior to or simultaneously with the event for which the
calculation of the Fixed Charge Coverage Ratio is made (the “Fixed Charge Coverage Ratio
Calculation Date”), then the Fixed Charge Coverage Ratio shall be
calculated giving pro forma effect to such
incurrence, assumption, guarantee, redemption, retirement or extinguishment of
Indebtedness, or such issuance or redemption of Disqualified Stock or Preferred
Stock, as if the same had occurred at the beginning of the applicable
four-quarter period.

     

    For
purposes of making the computation referred to above, Investments, acquisitions,
dispositions, mergers, consolidations and disposed operations (as determined in
accordance with GAAP) that have been made by the Issuer or any of its Restricted
Subsidiaries during the four-quarter reference period or subsequent to such
reference period and on or prior to or simultaneously with the Fixed Charge
Coverage Ratio Calculation Date shall be calculated on a pro forma basis assuming
that all such Investments, acquisitions, dispositions, mergers, consolidations
and disposed operations (and the change in any associated fixed charge
obligations and the change in EBITDA resulting therefrom) had occurred on the
first day of the four-quarter reference period.  If, since the
beginning of such period, any Person that subsequently became a Restricted
Subsidiary or was merged with or into the Issuer or any of its Restricted
Subsidiaries since the beginning of such period shall have made any Investment,
acquisition, disposition, merger, consolidation or disposed operation that would
have required adjustment pursuant to this definition, then the Fixed Charge
Coverage Ratio shall be calculated giving pro forma effect thereto
for such period as if such Investment, acquisition, disposition, merger,
consolidation or disposed operation had occurred at the beginning of the
applicable four-quarter period.

     

    For
purposes of this definition, whenever pro forma effect is to be
given to a transaction, the pro forma calculations
shall be made in good faith by a responsible financial or accounting officer of
the Issuer.  If any Indebtedness bears a floating rate of interest and
is being given pro forma effect, the
interest on such Indebtedness shall be calculated as if the rate in effect on
the Fixed Charge Coverage Ratio Calculation Date had been the applicable rate
for the entire period (taking into account any Hedging Obligations applicable to
such Indebtedness).  Interest on a Capitalized Lease Obligation shall
be deemed to accrue at an interest rate reasonably determined by a responsible
financial or accounting officer of the Issuer to be the rate of interest
implicit in such Capitalized Lease Obligation in accordance with
GAAP.  For purposes of making the computation referred to above,
interest on any Indebtedness under a revolving credit facility computed on a
pro forma basis shall be
computed based upon the average daily balance of such Indebtedness during the
applicable period except as set forth in the first paragraph of this
definition.  Interest on Indebtedness that may optionally be
determined at an interest rate based upon a factor of a prime or similar rate, a
eurocurrency interbank offered rate or other rate shall be deemed to have been
based upon the rate actually chosen, or, if none, then based upon such optional
rate chosen as the Issuer may designate.

     

    “Fixed Charges” means,
with respect to any Person for any period, the sum of:

     

    (1)           Consolidated
Interest Expense of such Person for such period;

     

    (2)           all
cash dividends or other distributions paid (excluding items eliminated in
consolidation) on any series of Preferred Stock during such period;
and

     

    (3)           all
cash dividends or other distributions paid (excluding items eliminated in
consolidation) on any series of Disqualified Stock during such
period.

     

    “Foreign Subsidiary”
means, with respect to any Person, any Restricted Subsidiary of such Person that
is not organized or existing under the laws of the United States, any state or
territory thereof or the District of Columbia and any Restricted Subsidiary of
such Foreign Subsidiary.

     

    “GAAP” means generally
accepted accounting principles in the United States which are in effect on the
Closing Date.

     

    “Global Note Legend”
means the legend set forth in Section 2.06(g)(ii) hereof, which is required
to be placed on all Global Notes issued under this Indenture.

     

    “Global Notes” means,
individually and collectively, each of the Restricted Global Notes and the
Unrestricted Global Notes deposited with or on behalf of and registered in the
name of the Depositary or its nominee, substantially in the form of Exhibit A hereto
and that bears the Global Note Legend and that has the “Schedule of Exchanges of
Interests in the Global Note” attached thereto, issued in accordance with
Section 2.01, 2.06(b), 2.06(d) or 2.06(f) hereof.

     

    “Government
Authority” means
any nation or government, any state, province, territory or other political
subdivision thereof, and any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government, including
without limitation, ERCOT.

     

    “Government
Securities” means securities that are:

     

    (1)           direct
obligations of the United States of America for the timely payment of which its
full faith and credit is pledged; or

     

    (2)           obligations
of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America the timely payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United
States of America,

     

    which, in
either case, are not callable or redeemable at the option of the issuers
thereof, and shall also include a depository receipt issued by a bank (as
defined in Section 3(a)(2) of the Securities Act), as custodian with
respect to any such Government Securities or a specific payment of principal of
or interest on any such Government Securities held by such custodian for the
account of the holder of such depository receipt; provided that (except
as required by law) such custodian is not authorized to make any deduction from
the amount payable to the holder of such depository receipt from any amount
received by the custodian in respect of the Government Securities or the
specific payment of principal of or interest on the Government Securities
evidenced by such depository receipt.

     

    “guarantee” means a
guarantee (other than by endorsement of negotiable instruments for collection in
the ordinary course of business), direct or indirect, in any manner (including
letters of credit and reimbursement agreements in respect thereof), of all or
any part of any Indebtedness or other obligations.

     

    “Guarantee” means the
guarantee by any Guarantor of the Issuer’s Obligations under this Indenture and
the Notes.

     

    “Guarantor” means each
Restricted Subsidiary that Guarantees the Notes in accordance with the terms of
this Indenture.

     

    “Hazardous Materials”
means (a) any petroleum or petroleum products, radioactive materials, friable
asbestos, urea formaldehyde foam insulation, transformers or other equipment
that contain dielectric fluid containing regulated levels of polychlorinated
biphenyls and radon gas; (b) any chemicals, materials or substances defined as
or included in the definition of “hazardous substances,” “toxic substances,”
“toxic pollutants,” “contaminants,” or “pollutants” or words of similar import,
under any applicable Environmental Law; and (c) any other chemical, material or
substance, which is prohibited, limited or regulated by any Environmental
Law.

     

    “Hedging Obligations”
means with respect to any Person, the obligations of such Person under
(a) any and all rate swap transactions, basis swaps, credit derivative
transactions, forward rate transactions, commodity swaps, commodity options,
forward commodity contracts, equity or equity index swaps or options, bond or
bond price or bond index swaps or options or forward bond or forward bond price
or forward bond index transactions, interest rate options, forward foreign
exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap transactions,
currency options, spot contracts, or any other similar transactions or any
combination of any of the foregoing (including any options to enter into any of
the foregoing), whether or not any such transaction is governed by or subject to
any master agreement, (b) any and all transactions of any kind, and the
related confirmations, which are subject to the terms and conditions of, or
governed by, any form of master agreement published by the International Swaps
and Derivatives Association, Inc., any International Foreign Exchange Master
Agreement or any other master agreement (any such master agreement, together
with any related schedules, a “Master Agreement”),
including any such obligations or liabilities under any Master Agreement and (c)
physical or financial commodity  contracts or agreements, power
purchase or sale agreements, fuel purchase or sale agreements, environmental
credit purchase or sale agreements, power transmission agreements, commodity
transportation agreements, fuel storage agreements, netting agreements 
(including Netting Agreements), capacity agreement and commercial or
trading agreements, each with respect to, or including the purchase, sale,
exchange of (or the option to purchase, sell or
exchange), transmission,  transportation,
storage, distribution,  processing, sale, lease or hedge of,
any Covered Commodity price or price indices for any such Covered Commodity or
services or any other similar derivative agreements, and any other similar
agreements.

     

    “Holder” means the
Person in whose name a Note is registered on the registrar’s books.

     

    “Incremental Deposit L/C
Loans” means Incremental Deposit L/C Loans under, and as defined in, the
TCEH Senior Secured Facilities.

     

    “Indebtedness” means,
with respect to any Person, without duplication:

     

    (1)           any
indebtedness (including principal and premium) of such Person, whether or not
contingent:

     

    (a)           in
respect of borrowed money;

     

    (b)           evidenced
by bonds, notes, debentures or similar instruments or letters of credit or
bankers’ acceptances (or, without duplication, reimbursement agreements in
respect thereof);

     

    (c)           representing
the balance deferred and unpaid of the purchase price of any property (including
Capitalized Lease Obligations), except (i) any such balance that
constitutes a trade payable or similar obligation to a trade creditor, in each
case accrued in the ordinary course of business and (ii) any earn-out
obligations until such obligation becomes a liability on the balance sheet of
such Person in accordance with GAAP; or

     

    (d)           representing
any Hedging Obligations;

     

    if and to
the extent that any of the foregoing Indebtedness (other than letters of credit
and Hedging Obligations) would appear as a liability upon a balance sheet
(excluding the footnotes thereto) of such Person prepared in accordance with
GAAP;

     

    (2)           to
the extent not otherwise included, any obligation by such Person to be liable
for, or to pay, as obligor, guarantor or otherwise on, the obligations of the
type referred to in clause (1) of a third Person (whether or not such items
would appear upon the balance sheet of the such obligor or guarantor), other
than by endorsement of negotiable instruments for collection in the ordinary
course of business; and

     

    (3)           to
the extent not otherwise included, the obligations of the type referred to in
clause (1) of a third Person secured by a Lien on any asset owned by such first
Person, whether or not such Indebtedness is assumed by such first Person; provided that the
amount of Indebtedness of such first Person for purposes of this clause (3)
shall be deemed to be equal to the lesser of (i) the aggregate unpaid amount of
such Indebtedness and (ii) the fair market value of the property encumbered
thereby as determined by such first Person in good faith;

     

    provided, however, that
notwithstanding the foregoing, Indebtedness shall be deemed not to include
(a) Contingent Obligations incurred in the ordinary course of business or
(b) obligations under or in respect of Receivables Facilities or (c)
amounts payable by and between the Issuer and its Subsidiaries in connection
with retail clawback or other regulatory transition issues.

     

    “Indenture” means this
Indenture, as amended or supplemented from time to time.

     

    “Independent Financial
Advisor” means an accounting, appraisal, investment banking firm or
consultant to Persons engaged in Similar Businesses of nationally recognized
standing that is, in the good faith judgment of the Issuer, qualified to perform
the task for which it has been engaged.

     

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

     

    “Initial Purchasers”
means Citigroup Global Markets Inc., Goldman, Sachs & Co., Credit
Suisse Securities (USA) LLC, J.P. Morgan Securities Inc., Banc of America
Securities LLC and Morgan Stanley & Co. Incorporated.

     

    “Initial Notes” has
the meaning set forth in the recitals hereto.

     

    “insolvency or liquidation
proceeding” means:

     

    (1)           any
case commenced by or against the Issuer or any Guarantor under any Bankruptcy
Law for the relief of debtors, any other proceeding for the reorganization,
recapitalization or adjustment or marshalling of the assets or liabilities of
the Issuer or any Guarantor, any receivership or assignment for the benefit of
creditors relating to the Issuer or any Guarantor or any similar case or
proceeding relative to the Issuer or any Guarantor or its creditors, as such, in
each case whether or not voluntary;

     

    (2)           any
liquidation, dissolution, marshalling of assets or liabilities or other winding
up of or relating to the Issuer or any Guarantor, in each case whether or not
voluntary and whether or not involving bankruptcy or insolvency; or

     

    (3)           any
other proceeding of any type or nature in which substantially all claims of
creditors of the Issuer or any Guarantor are determined and any payment or
distribution is or may be made on account of such claims.

     

    “Interest Payment
Date” means January 15 and July 15 of each year to Stated
Maturity.

     

    “Investment Grade
Rating” means a rating equal to or higher than Baa3 (or the equivalent)
by Moody’s, BBB- (or the equivalent) by S&P, or an equivalent rating by any
other Rating Agency.

     

    “Investment Grade
Securities” means:

     

    (1)           securities
issued or directly and fully guaranteed or insured by the United States
government or any agency or instrumentality thereof (other than Cash
Equivalents);

     

    (2)           debt
securities or debt instruments with an Investment Grade Rating, but excluding
any debt securities or instruments constituting loans or advances among the
Issuer and its Subsidiaries;

     

    (3)           investments
in any fund that invests exclusively in investments of the type described in
clauses (1) and (2) which fund may also hold immaterial amounts of cash pending
investment or distribution; and

     

    (4)           corresponding
instruments in countries other than the United States customarily utilized for
high quality investments.

     

    “Investments” means,
with respect to any Person, all investments by such Person in other Persons
(including Affiliates) in the form of loans (including guarantees), advances or
capital contributions (excluding accounts receivable, trade credit, advances to
customers, commissions, travel and similar advances to officers and employees,
in each case made in the ordinary course of business), purchases or other
acquisitions for consideration of Indebtedness, Equity Interests or other
securities issued by any other Person and investments that are required by GAAP
to be classified on the balance sheet (excluding the footnotes) of the Issuer in
the same manner as the other investments included in this definition to the
extent such transactions involve the transfer of cash or other
property.

     

    For
purposes of the definition of “Unrestricted Subsidiary” and Section 4.07
hereof:

     

    (1)           “Investments”
shall include the portion (proportionate to the Issuer’s equity interest in such
Subsidiary) of the fair market value of the net assets of a Subsidiary of the
Issuer at the time that such Subsidiary is designated an Unrestricted
Subsidiary; provided, however, that upon a
redesignation of such Subsidiary as a Restricted Subsidiary, the Issuer shall be
deemed to continue to have a permanent “Investment” in an Unrestricted
Subsidiary in an amount (if positive) equal to:

     

    (a)           the
Issuer’s “Investment” in such Subsidiary at the time of such redesignation;
less

     

    (b)           the
portion (proportionate to the Issuer equity interest in such Subsidiary) of the
fair market value of the net assets of such Subsidiary at the time of such
redesignation; and

     

    (2)           any
property transferred to or from an Unrestricted Subsidiary shall be valued at
its fair market value at the time of such transfer, in each case as determined
in good faith by the Issuer.

     

    “Investors” means
Kohlberg Kravis Roberts & Co. L.P., TPG Capital, L.P., J.P. Morgan
Ventures Corporation, Citigroup Global Markets Inc., Morgan Stanley & Co.
Incorporated, Goldman, Sachs & Co. and LB I Group, Inc. and each of their
respective Affiliates but not including, however, any portfolio companies of any
of the foregoing.

     

    “Issue Date” means the
first date on which any Notes are issued pursuant to this
Indenture.

     

    “Issuer” has the
meaning set forth in the recitals hereto and its successors under Article 5;
provided that
when used in the context of determining the fair market value of an asset or
liability under this Indenture, “Issuer” shall be
deemed to mean the Board of Directors of the Issuer when the fair market value
is equal to or in excess of $500.0 million (unless otherwise expressly
stated).

     

    “Junior Lien” means a
Lien granted by a security document to the Collateral Trustee, at any time, upon
any Collateral to secure Junior Lien Obligations.

     

    “Junior Lien Debt”
means:

     

    (1)           any
Indebtedness (including letters of credit and reimbursement obligations with
respect thereto) of the Issuer or any Guarantor that is secured on a
subordinated basis to the Parity Lien Debt by a Junior Lien that was permitted
to be incurred and so secured under each applicable Secured Debt Document; provided
that:

     

    
      	
               
      

            	
              (a)

            	
              on
      or before the date on which such Indebtedness is incurred by the Issuer or
      such Guarantor, such Indebtedness is designated by the Issuer, in
      accordance with the Collateral Trust Agreement, as “Junior Lien Debt” for
      the purposes of the Secured Debt Documents, including the Collateral Trust
      Agreement; provided that
      no Series of Secured Lien Debt may be designated as both Junior Lien Debt
      and Parity Lien Debt;

            

    

     

    
      	
               
      

            	
              (b)

            	
              such
      Indebtedness is governed by an indenture, credit agreement or other
      agreement that includes a Lien Sharing and Priority Confirmation;
      and

            

    

     

    
      	
               
      

            	
              (c)

            	
              all
      requirements set forth in the Collateral Trust Agreement as to the
      confirmation, grant or perfection of the Collateral Trustee’s Liens to
      secure such Indebtedness or Obligations in respect thereof are satisfied
      (and the satisfaction of such requirements shall be conclusively
      established if the Issuer delivers to the Collateral Trustee an Officer’s
      Certificate stating that such requirements have been satisfied and that
      such Indebtedness is “Junior Lien Debt”);
and

            

    

     

    (2)           Hedging
Obligations of the Issuer or any Guarantor incurred to hedge or manage interest
rate risk with respect to Junior Lien Debt; provided that,
pursuant to the terms of the Junior Lien Documents, such Hedging Obligations are
secured by a Junior Lien on all of the assets and properties that secure the
Indebtedness in respect of which such Hedging Obligations are
incurred.

     

    “Junior Lien
Documents” means, collectively, any indenture, credit agreement or other
agreement governing a Series of Junior Lien Debt and the Security Documents that
create or perfect Liens securing Junior Lien Obligations.

     

    “Junior Lien
Obligations” means Junior Lien Debt and all other Obligations in respect
thereof.

     

    “Junior Lien
Representative” means, in the case of any future Series of Junior Lien
Debt, the trustee, agent or representative of the holders of such Series of
Junior Lien Debt who (a) is appointed as a Junior Lien Representative (for
purposes related to the administration of the Security Documents) pursuant to
the indenture, credit agreement or other agreement governing such Series of
Junior Lien Debt, together with its successors in such capacity, and (b) has
become a party to the Collateral Trust Agreement by executing a joinder in the
form required under the Collateral Trust Agreement.

     

    “Legal Holiday” means
a Saturday, a Sunday or a day on which commercial banking institutions are not
required to be open in the State of New York.

     

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

     

    “Lien” means, with
respect to any asset, any mortgage, lien (statutory or otherwise), pledge,
hypothecation, charge, security interest, preference, priority or encumbrance of
any kind in respect of such asset, whether or not filed, recorded or otherwise
perfected under applicable law, including any conditional sale or other title
retention agreement, any lease in the nature thereof, any option or other
agreement to sell or give a security interest in and any filing of or agreement
to give any financing statement under the Uniform Commercial Code (or equivalent
statutes) of any jurisdiction; provided that in no event shall an operating
lease be deemed to constitute a Lien.

     

    “Lien Sharing and Priority
Confirmation” means:

     

    (1)           as
to any Series of Parity Lien Debt, the written agreement enforceable against the
holders of such Series of Parity Lien Debt, as set forth in the applicable
Secured Debt Document:

     

    (a)           for
the enforceable benefit of all holders of each existing and future Series of
Parity Lien Debt and each existing and future Parity Lien Representative, that
all Parity Lien Obligations shall be and are secured equally and ratably by all
Parity Liens at any time granted by the Issuer or any Guarantor to secure any
Obligations in respect of such Series of Parity Lien Debt, and that all such
Parity Liens shall be enforceable by the Collateral Trustee for the benefit of
all holders of Parity Lien Obligations equally and ratably;

     

    (b)           for
the enforceable benefit of all holders of each existing and future Series of
Parity Lien Debt and Series of Junior Lien Debt, and each existing and future
Parity Lien Representative and Junior Lien Representative, that the holders of
Obligations in respect of such Series of Parity Lien Debt are bound by the
provisions of the Collateral Trust Agreement, including the provisions relating
to the ranking of Parity Liens and the order of application of proceeds from
enforcement of Parity Liens; and

     

    (c)           consenting
to and directing the Collateral Trustee to perform its obligations under the
Collateral Trust Agreement and the other security documents in respect of the
Secured Debt Obligations.

     

    (2)           as
to any Series of Junior Lien Debt, the written agreement enforceable against the
holders of such Series of Junior Lien Debt, as set forth in the applicable
Secured Debt Document:

     

    (a)           for
the enforceable benefit of all holders of each existing and future Series of
Junior Lien Debt and Series of Parity Lien Debt and each existing and future
Junior Lien Representative and Parity Lien Representative, that all Junior Lien
Obligations shall be and are secured equally and ratably by all Junior Liens at
any time granted by the Issuer or any Guarantor to secure any Obligations in
respect of such Series of Junior Lien Debt, and that all such Junior Liens shall
be enforceable by the Collateral Trustee for the benefit of all holders of
Junior Lien Obligations equally and ratably;

     

    (b)           for
the enforceable benefit of all holders of each existing and future Series of
Parity Lien Debt and Series of Junior Lien Debt and each existing and future
Parity Lien Representative and Junior Lien Representative, that the holders of
Obligations in respect of such Series of Junior Lien Debt are bound by the
provisions of the Collateral Trust Agreement, including the provisions relating
to the ranking of Junior Liens and the order of application of proceeds from the
enforcement of Junior Liens; and

     

    (c)           consenting
to and directing the Collateral Trustee to perform its obligations under the
Collateral Trust Agreement and the other security documents in respect of the
Secured Debt Obligations.

     

    “Moody’s” means
Moody’s Investors Service, Inc. and any successor to its rating agency
business.

     

    “Necessary CapEx Debt”
means Indebtedness of the Issuer or any of its Restricted Subsidiaries incurred
for the purpose of financing Necessary Capital Expenditures.

     

    “Necessary Capital
Expenditures” means capital expenditures by the Issuer and its Restricted
Subsidiaries that are required by applicable law (other than Environmental Law)
or otherwise undertaken voluntarily for health and safety reasons (other than as
required by Environmental Law).  The term “Necessary Capital
Expenditures” does not include any capital expenditure undertaken primarily to
increase the efficiency of, expand or re-power any power generation
facility.

     

    “Net Income” means,
with respect to any Person, the net income (loss) of such Person, determined in
accordance with GAAP and before any reduction in respect of Preferred Stock
dividends.

     

    “Net Proceeds” means
the aggregate cash proceeds and Cash Equivalents received by the Issuer or any
of its Restricted Subsidiaries in respect of any Asset Sale (including a
Casualty Event), including any cash  and Cash Equivalents received
upon the sale or other disposition of any Designated Non-cash Consideration
received in any Asset Sale (including a Casualty Event), net of the direct costs
relating to such Asset Sale (including a Casualty Event) and the sale or
disposition of such Designated Non-cash Consideration, including legal,
accounting and investment banking fees, and brokerage and sales commissions, any
relocation expenses incurred as a result thereof, taxes paid or payable as a
result thereof (after taking into account any available tax credits or
deductions and any tax sharing arrangements), amounts required to be applied
using proceeds from Asset Sales (other than Asset Sales of Collateral or other
Oncor-related Assets) to the repayment of principal, premium, if any, and
interest on other Senior Indebtedness required (other than required by clause
(1) of Section 4.10(b) hereof) to be paid as a result of such transaction and
any deduction of appropriate amounts to be provided by the Issuer or any of its
Restricted Subsidiaries as a reserve in accordance with GAAP against any
liabilities associated with the asset disposed of in such transaction and
retained by the Issuer or any of its Restricted Subsidiaries after such sale or
other disposition thereof, including pension and other post-employment benefit
liabilities and liabilities related to environmental matters or against any
indemnification obligations associated with such transaction.

     

    “Netting Agreement”
shall mean a netting agreement, master netting agreement or other similar
document having the same effect as a netting agreement or master netting
agreement and, as applicable, any collateral annex, security agreement or other
similar document related to any master netting agreement or Permitted
Contract.

     

    “Non-U.S. Person”
means a Person who is not a U.S. Person.

     

    “Notes” means the
Initial Notes (including any Exchange Notes issued in exchange therefor), and
more particularly means any Note authenticated and delivered under this
Indenture.  For all purposes of this Indenture, the term “Notes” shall
also include any Additional Notes that may be issued under this Indenture
(including any Exchange Notes issued in exchange therefor).  The Notes
and Additional Notes subsequently issued under this Indenture shall be treated
as a single class for all purposes under this Indenture, except as set forth
herein.

     

    “Note Obligations”
means the Notes, the Guarantees and all other Obligations of any of the Issuer
and the Guarantors under this Indenture, the Notes, the Guarantees and the
Security Documents.

     

    “Obligations” means
any principal, interest (including any interest accruing subsequent to the
filing of a petition in bankruptcy, reorganization or similar proceeding at the
rate provided for in the documentation with respect thereto, whether or not such
interest is an allowed claim under applicable state, federal or foreign law),
premium, penalties, fees, indemnifications, reimbursements (including
reimbursement obligations with respect to letters of credit and bankers’
acceptances), damages and other liabilities, and guarantees of payment of such
principal, interest, penalties, fees, indemnifications, reimbursements, damages
and other liabilities, payable under the documentation governing any
Indebtedness.

     

    “Offering Memorandum”
means the offering memorandum dated January 7, 2010, relating to the sale of the
Initial Notes.

     

    “Officer” means the
Chairman of the Board, the Chief Executive Officer, the President, any Executive
Vice President, Senior Vice President or Vice President, the Treasurer or the
Secretary of the Issuer, or other Person, as the case may be.

     

    “Officer’s
Certificate” means a certificate signed on behalf of the Issuer by an
Officer of the Issuer or on behalf of another Person by an Officer of such
Person, who must be the principal executive officer, the principal financial
officer, the treasurer or the principal accounting officer of the Issuer or such
Person, as applicable, that meets the requirements of Section 13.05
hereof.

     

    “Oncor Electric Delivery
Facility” means
the revolving credit agreement entered into as of the Closing Date, by and among
Oncor Electric Delivery, as borrower, the lenders party thereto in their
capacities as lenders thereunder and JPMorgan Chase Bank, N.A., as
Administrative Agent, including any guarantees, collateral documents,
instruments and agreements executed in connection therewith, and any amendments,
supplements, modifications, extensions, renewals, restatements, refundings or
refinancings thereof and any indentures or credit facilities or commercial paper
facilities with banks or other institutional lenders or investors that replace,
refund or refinance any part of the loans, notes, other credit facilities or
commitments thereunder, including any such replacement, refunding or refinancing
facility or indenture that increases the amount borrowable thereunder or alters
the maturity thereof.

     

    “Oncor Holdings” means
Oncor Electric Delivery Holdings Company LLC.

     

    “Oncor-related Assets”
means the Equity Interests in EFIH directly or indirectly owned by the Issuer,
the Equity Interests of any of the Oncor Subsidiaries or any Successor Oncor
Business (including the Collateral) owned by EFIH or any Oncor Subsidiary or any
Successor Oncor Business or constituting a primary issuance of such Equity
Interests to the extent such issuance would constitute an Asset Sale and any
assets owned directly or indirectly by any of the Oncor Subsidiaries or any
Successor Oncor Business.

     

    “Oncor Subsidiaries”
means Oncor Holdings and its Subsidiaries, all of which shall be Unrestricted
Subsidiaries on the Issue Date.

     

    “Opinion of Counsel”
means a written opinion from legal counsel who is acceptable to the Trustee that
meets the requirements of Section 13.05 hereof.  The counsel may be an
employee of or counsel to the Issuer or the Trustee.

     

    “Parity Lien” means a
Lien granted by a security document to the Collateral Trustee, at any time, upon
any Collateral to secure Parity Lien Obligations.

     

    “Parity Lien Debt”
means:

     

    (1)           
the Guarantee by EFIH of the Initial Notes and any Additional Notes issued under
this Indenture and any Exchange Notes related to such Initial Notes or
Additional Notes;

     

    (2)           the
9.75% Notes and any additional 9.75% Notes, any other Indebtedness (including
letters of credit and reimbursement obligations with respect thereto) of EFIH,
including the guarantee by EFIH of the 9.75% Notes and any additional 9.75%
Notes and the EFIH Notes and any additional EFIH Notes, that is secured equally
and ratably with EFIH’s Guarantee of the Notes by a Parity Lien that was
permitted to be incurred and so secured under each applicable Secured Debt
Document; provided, in the case of Indebtedness referred to in this clause (2),
that, except with respect to the EFIH Notes:

     

    
      	
               
      

            	
              (a)

            	
              on
      or before the date on which such Indebtedness is incurred by the Issuer or
      such Guarantor, such Indebtedness is designated by the Issuer, in
      accordance with the Collateral Trust Agreement, as  “Parity Lien
      Debt” for the purposes of the Secured Debt Documents; provided that no
      Series of Secured Lien Debt may be designated as both Parity Lien Debt and
      Junior Lien Debt;

            

    

     

    
      	
               
      

            	
              (b)

            	
              such
      Indebtedness is governed by an indenture, credit agreement or other
      agreement that includes a Lien Sharing and Priority Confirmation;
      and

            

    

     

    
      	
               
      

            	
              (c)

            	
              all
      requirements set forth in the Collateral Trust Agreement as to the
      confirmation, grant or perfection of the Collateral Trustee’s Lien to
      secure such Indebtedness or Obligations in respect thereof are satisfied
      (and the satisfaction of such requirements shall be conclusively
      established if the Issuer delivers to the Collateral Trustee an Officer’s
      Certificate stating that such requirements have been satisfied and that
      such notes or such Indebtedness is “Parity Lien Debt”);
  and

            

    

     

    (3)           Hedging
Obligations of the Issuer or any Guarantor incurred to hedge or manage interest
rate risk with respect to Parity Lien Debt; provided that, pursuant to the terms
of the Parity Lien Documents, such Hedging Obligations are secured by a Parity
Lien on all of the assets and properties that secure the Indebtedness in respect
of which such Hedging Obligations are incurred.

     

    “Parity Lien
Documents” means this Indenture, the 9.75% Notes Indenture, the EFIH
Indenture and any additional indenture, credit agreement or other agreement
governing a Series of Parity Lien Debt and the Security Documents that create or
perfect Liens securing Parity Lien Obligations.

     

    “Parity Lien
Obligations” means Parity Lien Debt and all other Obligations in respect
thereof.

     

    “Parity Lien
Representative” means (1) the Trustee, in the case of the Notes, (2) the
trustee for the EFIH Notes, in the case of the EFIH Notes or (3) in the case of
any other Series of Parity Lien Debt, the trustee, agent or representative of
the holders of such Series of Parity Lien Debt who (a) is appointed as a Parity
Lien Representative (for purposes related to the administration of the Security
Documents) pursuant to the indenture, credit agreement or other agreement
governing such Series of Parity Lien Debt, together with its successors in such
capacity, and (b) has become a party to the Collateral Trust Agreement by
executing a joinder in the form required under the Collateral Trust
Agreement.

     

    “Participant” means,
with respect to the Depositary, Euroclear or Clearstream, a Person who has an
account with the Depositary, Euroclear or Clearstream, respectively (and, with
respect to DTC, shall include Euroclear and Clearstream).

     

    “Permitted Asset Swap”
means the concurrent purchase and sale or exchange of Related Business Assets or
a combination of Related Business Assets and cash or Cash Equivalents between
the Issuer or any of its Restricted Subsidiaries and another Person; provided, that any
cash or Cash Equivalents received must be applied in accordance with Section
4.10 hereof.

     

    “Permitted Asset
Transfer” means (1) the direct or indirect sale, assignment, transfer,
conveyance or other disposition (including by way of merger, wind-up or
consolidation) or spin-off by dividend of the Equity Interests of EFIH such that
EFIH is no longer a Subsidiary of the Issuer (including without limitation a
merger of EFIH with and into the Issuer) or (2) the sale, assignment, transfer,
conveyance or other disposition (other than by way of merger, wind-up or
consolidation) of all of the Equity Interests of, and other Investments in, the
Oncor Subsidiaries, Successor Oncor Businesses and all other Collateral held by
EFIH to a Person (other than an Oncor Subsidiary) that shall continue to hold
such Equity Interests, other Investments and any other Collateral, in each case
other than any foreclosure on the Collateral.

     

    “Permitted Holders”
means each of the Investors, members of management (including directors) of the
Issuer or any of its Subsidiaries who on the Closing Date were or at any time
prior to the first anniversary of the Closing Date were holders of Equity
Interests of the Issuer (or any of its direct or indirect parent companies) and
any group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the
Exchange Act or any successor provision) of which any of the foregoing are
members; provided that, in the
case of such group and without giving effect to the existence of such group or
any other group, such Investors and members of management, collectively, have
beneficial ownership of more than 50% of the total voting power of the Voting
Stock of the Issuer or any of its direct or indirect parent
companies.

     

    “Permitted
Investments” means:

     

    (1)           any
Investment in the Issuer or any of its Restricted Subsidiaries;

     

    (2)           any
Investment in cash and Cash Equivalents or Investment Grade
Securities;

     

    (3)           any
Investment by the Issuer or any of its Restricted Subsidiaries in a Person that
is engaged in a Similar Business if as a result of such Investment:

     

    (a)           such
Person becomes a Restricted Subsidiary; or

     

    (b)           such
Person, in one transaction or a series of related transactions, is merged or
consolidated with or into, or transfers or conveys substantially all of its
assets to, or is liquidated into, the Issuer or a Restricted
Subsidiary,

     

    and, in
each case, any Investment held by such Person; provided that such
Investment was not acquired by such Person in contemplation of such acquisition,
merger, consolidation or transfer;

     

    (4)           any
Investment in securities or other assets not constituting cash, Cash Equivalents
or Investment Grade Securities and received in connection with an Asset Sale
made pursuant to Section 4.10 hereof or any other disposition of assets not
constituting an Asset Sale;

     

    (5)           any
Investment existing on the Issue Date;

     

    (6)           any
Investment acquired by the Issuer or any of its Restricted
Subsidiaries:

     

    (a)           in
exchange for any other Investment or accounts receivable held by the Issuer or
any such Restricted Subsidiary in connection with or as a result of a
bankruptcy, workout, reorganization or recapitalization of the issuer of such
other Investment or accounts receivable; or

     

    (b)           as
a result of a foreclosure by the Issuer or any of its Restricted Subsidiaries
with respect to any secured Investment or other transfer of title with respect
to any secured Investment in default;

     

    (7)           Hedging
Obligations permitted under clause (10) of Section 4.09(b) hereof;

     

    (8)           any
Investment in a Similar Business having an aggregate fair market value, taken
together with all other Investments made pursuant to this clause (8) that
are at that time outstanding, not to exceed 3.5% of Total Assets at the time of
such Investment (with the fair market value of each Investment being measured at
the time made and without giving effect to subsequent changes in
value);

     

    (9)           Investments
the payment for which consists of Equity Interests (exclusive of Disqualified
Stock) of the Issuer or any of its direct or indirect parent companies; provided, however, that such
Equity Interests shall not increase the amount available for Restricted Payments
under clause (3) of Section 4.07(a) hereof;

     

    (10)           guarantees
of Indebtedness of the Issuer or any of its Restricted Subsidiaries permitted
under Section 4.09 hereof;

     

    (11)           any
transaction to the extent it constitutes an Investment that is permitted and
made in accordance with the provisions of Section 4.11(b)
hereof  (except transactions described in clauses (2), (5) and (9) of
Section 4.11(b) hereof);

     

    (12)           Investments
consisting of purchases and acquisitions of inventory, fuel (including all forms
of nuclear fuel), supplies, material or equipment;

     

    (13)           additional
Investments having an aggregate fair market value, taken together with all other
Investments made pursuant to this clause (13) that are at that time outstanding
(without giving effect to the sale of an Investment to the extent the proceeds
of such sale do not consist of cash or marketable securities), not to exceed
3.5% of Total Assets at the time of such Investment (with the fair market value
of each Investment being measured at the time made and without giving effect to
subsequent changes in value);

     

    (14)           Investments
relating to a Receivables Subsidiary that, in the good faith determination of
the Issuer, are necessary or advisable to effect any Receivables Facility for
the benefit of the Issuer or any of its Restricted Subsidiaries;

     

    (15)           advances
to, or guarantees of Indebtedness of, employees not in excess of
$25.0 million outstanding at any one time, in the aggregate;

     

    (16)           loans
and advances to officers, directors and employees for business-related travel
expenses, moving expenses and other similar expenses, in each case incurred in
the ordinary course of business or consistent with past practices or to fund
such Person’s purchase of Equity Interests of the Issuer or any direct or
indirect parent company thereof;

     

    (17)           any
Investment in any Subsidiary or any joint venture in connection with
intercompany cash management arrangements or related activities arising in the
ordinary course of business;

     

    (18)           any
Investment in Shell Wind or in other wind or other renewable energy projects or
in any nuclear power or energy joint venture in an aggregate amount not to
exceed $1,500.0 million at any time outstanding;

     

    (19)           one
or more letters of credit in an aggregate amount not to exceed $170.0 million
posted by a Restricted Subsidiary in favor of an Oncor Subsidiary to secure that
Restricted Subsidiary’s contractual obligations to that Oncor Subsidiary;
and

     

    (20)           Investments
in any nuclear power or energy joint venture in an aggregate amount not to
exceed $200.0 million prior to receiving the requisite combined construction and
operating license from the U.S. Nuclear Regulatory Commission in respect
thereof.

     

    “Permitted Liens”
means, with respect to any Person:

     

    (1)           pledges
or deposits by such Person under workmen’s compensation laws, unemployment
insurance laws or similar legislation, or good faith deposits in connection with
bids, tenders, contracts (other than for the payment of Indebtedness) or leases
to which such Person is a party, or deposits to secure public or statutory
obligations of such Person or deposits of cash or U.S. government bonds to
secure surety or appeal bonds to which such Person is a party, or deposits as
security for contested taxes or import duties or for the payment of rent, in
each case incurred in the ordinary course of business (including in connection
with the construction or restoration of facilities for the generation,
transmission or distribution of electricity) or otherwise constituting Permitted
Investments;

     

    (2)           Liens
imposed by law, such as carriers’, warehousemen’s and mechanics’ Liens, in each
case for sums not yet overdue for a period of more than 30 days or being
contested in good faith by appropriate proceedings or other Liens arising out of
judgments or awards against such Person with respect to which such Person shall
then be proceeding with an appeal or other proceedings for review if adequate
reserves with respect thereto are maintained on the books of such Person in
accordance with GAAP;

     

    (3)           Liens
for taxes, assessments or other governmental charges not yet overdue for a
period of more than 30 days or payable or subject to penalties for nonpayment or
which are being contested in good faith by appropriate proceedings diligently
conducted, if adequate reserves with respect thereto are maintained on the books
of such Person in accordance with GAAP;

     

    (4)           Liens
in favor of issuers of performance and surety bonds or bid bonds or with respect
to other regulatory requirements or letters of credit issued pursuant to the
request of and for the account of such Person in the ordinary course of its
business;

     

    (5)           minor
survey or title exceptions or irregularities, minor encumbrances, easements or
reservations of, or rights of others for, licenses, permits, conditions,
covenants, rights-of-way, sewers, electric lines, telegraph and telephone lines
and other similar purposes, or zoning or other restrictions as to the use of
real properties or Liens incidental to the conduct of the business of such
Person or to the ownership of its properties which were not incurred in
connection with Indebtedness and which do not in the aggregate materially
adversely affect the value of said properties or materially impair their use in
the operation of the business of such Person;

     

    (6)           Liens
securing Indebtedness permitted to be incurred pursuant to clauses (4), (12) or
(13) of Section 4.09(b) hereof; provided that
(a) Liens securing Indebtedness, Disqualified Stock or Preferred Stock
permitted to be incurred pursuant to clause (13) of Section 4.09(b) hereof
relate only to Refinancing Indebtedness that serves to refund or refinance
Indebtedness, Disqualified Stock or Preferred Stock incurred under clauses (4)
or (12) of Section 4.09(b) hereof, and (b) Liens securing Indebtedness,
Disqualified Stock or Preferred Stock permitted to be incurred pursuant to
clause (4) of Section 4.09(b) hereof extend only to the assets so financed,
purchased, constructed or improved;

     

    (7)           Liens
existing on the Issue Date (other than Liens in favor of the lenders under the
TCEH Senior Secured Facilities);

     

    (8)           Liens
on property or shares of stock of a Person at the time such Person becomes a
Subsidiary; provided, however, such Liens
are not created or incurred in connection with, or in contemplation of, such
other Person becoming such a Subsidiary; provided, further, however, that such
Liens may not extend to any other property owned by the Issuer or any of its
Restricted Subsidiaries;

     

    (9)           Liens
on property at the time the Issuer or a Restricted Subsidiary acquired the
property, including any acquisition by means of a merger or consolidation with
or into the Issuer or any of its Restricted Subsidiaries; provided, however, that such
Liens are not created or incurred in connection with, or in contemplation of,
such acquisition; provided, further, however, that the
Liens may not extend to any other property owned by the Issuer or any of its
Restricted Subsidiaries;

     

    (10)           Liens
securing Indebtedness or other obligations of a Restricted Subsidiary owing to
the Issuer or another Restricted Subsidiary permitted to be incurred in
accordance with Section 4.09 hereof;

     

    (11)           Liens
securing Hedging Obligations, of the Issuer or its Restricted Subsidiaries
incurred under clause (10) of Section 4.09(b) hereof; provided that such
agreements were entered into in the ordinary course of business and not for
speculative purposes (as determined by the Issuer in its reasonable discretion
acting in good faith) and, in the case of any commodity Hedging Obligations or
any Hedging Obligation of the type described in clause (c) of the definition of
“Hedging Obligations,” entered into in order to hedge against or manage
fluctuations in the price or availability of any Covered Commodity;

     

    (12)           Liens
on specific items of inventory or other goods and proceeds of any Person
securing such Person’s obligations in respect of bankers’ acceptances issued or
created for the account of such Person to facilitate the purchase, shipment or
storage of such inventory or other goods;

     

    (13)           leases,
subleases, licenses or sublicenses granted to others in the ordinary course of
business which do not materially interfere with the ordinary conduct of the
business of the Issuer or any of its Restricted Subsidiaries;

     

    (14)           Liens
arising from Uniform Commercial Code financing statement filings regarding
operating leases entered into by the Issuer and its Restricted Subsidiaries in
the ordinary course of business;

     

    (15)           Liens
in favor of the Issuer or any Guarantor;

     

    (16)           [Intentionally
Omitted];

     

    (17)           Liens
on accounts receivable, other Receivables Facility assets, or accounts into
which collections or proceeds of Receivables Facility assets are deposited, in
each case in connection with a Receivables Facility for the benefit of the
Issuer or its Restricted Subsidiaries;

     

    (18)           Liens
to secure any refinancing, refunding, extension, renewal or replacement (or
successive refinancing, refunding, extensions, renewals or replacements) as a
whole, or in part, of any Indebtedness secured by any Lien referred to in the
foregoing clauses (6), (7), (8) and (9); provided, however, that
(a) such new Lien shall be limited to all or part of the same property that
secured the original Lien (plus improvements on such property), and (b) the
Indebtedness secured by such Lien at such time is not increased to any amount
greater than the sum of (i) the outstanding principal amount or, if
greater, committed amount of the Indebtedness described under clauses (6), (7),
(8), and (9) at the time the original Lien became a Permitted Lien under this
Indenture, and (ii) an amount necessary to pay any fees and expenses,
including premiums, related to such refinancing, refunding, extension, renewal
or replacement;

     

    (19)           deposits
made in the ordinary course of business to secure liability to insurance
carriers;

     

    (20)           other
Liens securing obligations incurred in the ordinary course of business which
obligations do not exceed $100.0 million at any one time
outstanding;

     

    (21)           Liens
securing judgments for the payment of money not constituting an Event of Default
under clause (5) of Section 6.01(a) hereof so long as such Liens are adequately
bonded and any appropriate legal proceedings that may have been duly initiated
for the review of such judgment have not been finally terminated or the period
within which such proceedings may be initiated has not expired;

     

    (22)           Liens
in favor of customs and revenue authorities arising as a matter of law to secure
payment of customs duties in connection with the importation of goods in the
ordinary course of business;

     

    (23)           Liens
(i) of a collection bank arising under Section 4-210 of the Uniform
Commercial Code, or any comparable or successor provision, on items in the
course of collection, and (ii) in favor of banking institutions arising as
a matter of law encumbering deposits (including the right of set-off) and which
are within the general parameters customary in the banking
industry;

     

    (24)           Liens
deemed to exist in connection with Investments in repurchase agreements
permitted under Section 4.09 hereof; provided that such
Liens do not extend to any assets other than those that are the subject of such
repurchase agreements;

     

    (25)           ground
leases or subleases, licenses or sublicenses in respect of real property on
which facilities owned or leased by the Issuer or any of its Subsidiaries are
located;

     

    (26)           Liens
that are contractual rights of set-off (i) relating to the establishment of
depository relations with banks not given in connection with the issuance of
Indebtedness, (ii) relating to pooled deposit or sweep accounts of the
Issuer or any of its Restricted Subsidiaries to permit satisfaction of overdraft
or similar obligations incurred in the ordinary course of business of the Issuer
and its Restricted Subsidiaries or (iii) relating to purchase orders and
other agreements entered into with customers of the Issuer or any of its
Restricted Subsidiaries in the ordinary course of business;

     

    (27)           Liens
arising out of conditional sale, title retention, consignment or similar
arrangements for the sale or purchase of goods entered into by the Issuer or any
Restricted Subsidiary in the ordinary course of business;

     

    (28)           rights
reserved to or vested in others to take or receive any part of, or royalties
related to, the power, gas, oil, coal, lignite or other minerals or timber
generated, developed, manufactured or produced by, or grown on, or acquired
with, any property of the Issuer or any of its Restricted Subsidiaries and Liens
upon the production from property of power, gas, oil, coal, lignite or other
minerals or timber, and the by-products and proceeds thereof, to secure the
obligations to pay all or a part of the expenses of exploration, drilling,
mining or development of such property only out of such production or
proceeds;

     

    (29)           Liens
arising out of all presently existing and future division and transfer orders,
advance payment agreements, processing contracts, gas processing plant
agreements, operating agreements, gas balancing or deferred production
agreements, pooling, unitization or communitization agreements, pipeline,
gathering or transportation agreements, platform agreements, drilling contracts,
injection or repressuring agreements, cycling agreements, construction
agreements, salt water or other disposal agreements, leases or rental
agreements, farm-out and farm-in agreements, exploration and development
agreements, and any and all other contracts or agreements covering, arising out
of, used or useful in connection with or pertaining to the exploration,
development, operation, production, sale, use, purchase, exchange, storage,
separation, dehydration, treatment, compression, gathering, transportation,
processing, improvement, marketing, disposal or handling of any property of the
Issuer or any of its Restricted Subsidiaries, provided that such
agreements are entered into in the ordinary course of business (including in
respect of construction and restoration activities);

     

    (30)           any
restrictions on any stock or stock equivalents or other joint venture interests
of the Issuer or any of its Restricted Subsidiaries providing for a breach,
termination or default under any owners, participation, shared facility, joint
venture, stockholder, membership, limited liability company or partnership
agreement between such Person and one or more other holders of such stock or
stock equivalents or interest of such Person, if a security interest or other
Lien is created on such stock or stock equivalents or interest as a result
thereof and other similar Liens;

     

    (31)           [Intentionally
Omitted];

     

    (32)           Liens
and other exceptions to title, in either case on or in respect of any facilities
of the Issuer or any of its Restricted Subsidiaries, arising as a result of any
shared facility agreement entered into with respect to such facility, except to
the extent that any such Liens or exceptions, individually or in the aggregate,
materially adversely affect the value of the relevant property or materially
impair the use of the relevant property in the operation of business of the
Issuer or any of its Restricted Subsidiaries, taken as a whole;

     

    (33)           Liens
on cash and Cash Equivalents (i) deposited by the Issuer or any of its
Restricted Subsidiaries in margin accounts with or on behalf of brokers, credit
clearing organizations, independent system operators, regional transmission
organizations, pipelines, state agencies, federal agencies, futures contract
brokers, customers, trading counterparties, or any other parties or issuers of
surety bonds or (ii) pledged or deposited as collateral by the Issuer or any of
its Restricted Subsidiaries with any of the entities described in clause (i)
above to secure their respective obligations, in the case of each of clauses (i)
and (ii) above, with respect to: (A) any contracts and transactions for the
purchase, sale, exchange of, or the option (whether physical or financial) to
purchase, sell or exchange (1) natural gas, (2) electricity, (3) coal and
lignite, (4) petroleum-based liquids, (5) oil, (6) nuclear fuel (including
enrichment and conversion), (7) emissions or other environmental credits, (8)
waste byproducts, (9) weather, (10) power and other generation capacity, (11)
heat rate, (12) congestion, (13) renewal energy credit, or (14) any other
energy-related commodity or services or derivative (including ancillary services
and related risk (such as location basis)); (B) any contracts or transactions
for the purchase, processing, transmission, transportation, distribution, sale,
lease, hedge or storage of, or any other services related to any commodity or
service identified in subparts (1) through (14) above, including any capacity
agreement; (C) any financial derivative agreement (including but not limited to
swaps, options or swaptions) related to any commodity identified in subparts (1)
through (14) above, or to any interest rate or currency rate management
activities; (D) any agreement for membership or participation in an organization
that facilitates or permits the entering into or clearing of any netting
agreement or any agreement described in this clause (33); (E) any agreement
combining part or all of a netting agreement or part or all of any of the
agreements described in this clause (33); (E) any document relating to any
agreement described in this clause (33) that is filed with a Government
Authority and any related service agreements; or (F) any commercial or trading
agreements, each with respect to, or involving the purchase, transmission,
distribution, sale, lease or hedge of, any energy, generation capacity or fuel,
or any other energy related commodity or service, price or price indices for any
such commodities or services or any other similar derivative agreements, and any
other similar agreements (such agreements described in clauses (A) through (F)
of this clause (33) being collectively, “Permitted
Contracts”), Netting Agreements, Hedging Obligations and letters of
credit supporting Permitted Contracts, Netting Agreements and Hedging
Obligations;

     

    (34)           Liens
arising under Section 9.343 of the Texas Uniform Commercial Code or similar
statutes of states other than Texas;

     

    (35)           Liens
created in the ordinary course of business in favor of banks and other financial
institutions over credit balances of any bank accounts of the Issuer and its
Subsidiaries held at such banks or financial institutions, as the case may be,
to facilitate the operation of cash pooling and/or interest set-off arrangements
in respect of such bank accounts in the ordinary course of
business;

     

    (36)           any
zoning, land use, environmental or similar law or right reserved to or vested in
any Government Authority to control or regulate the use of any real property
that does not materially interfere with the ordinary conduct of the business of
the Issuer or any of its Restricted Subsidiaries, taken as a whole;

     

    (37)           any
Lien arising by reason of deposits with or giving of any form of security to any
Government Authority for any purpose at any time as required by applicable law
as a condition to the transaction of any business or the exercise of any
privilege or license, or to enable the Issuer or any of its Restricted
Subsidiaries to maintain self-insurance or to participate in any fund for
liability on any insurance risks;

     

    (38)           Liens,
restrictions, regulations, easements, exceptions or reservations of any
Government Authority applying particularly to nuclear fuel;

     

    (39)           rights
reserved to or vested in any Government Authority by the terms of any right,
power, franchise, grant, license or permit, or by any provision of applicable
law, to terminate or modify such right, power, franchise, grant, license or
permit or to purchase or recapture or to designate a purchaser of any of the
property of such person;

     

    (40)           Liens
arising under any obligations or duties affecting any of the property of the
Issuer or any of its Restricted Subsidiaries to any Government Authority with
respect to any franchise, grant, license or permit which do not materially
impair the use of such property for the purposes for which it is
held;

     

    (41)           rights
reserved to or vested in any Government Authority to use, control or regulate
any property of such person;

     

    (42)           any
obligations or duties, affecting the property of the Issuer or any of its
Restricted Subsidiaries, to any Government Authority with respect to any
franchise, grant, license or permit;

     

    (43)           a
set-off or netting rights granted by the Issuer or any Subsidiary of the Issuer
pursuant to any agreements related to Hedging Obligations, Netting Agreements or
Permitted Contracts solely in respect of amounts owing under such
agreements;

     

    (44)           Liens
(i) on cash advances in favor of the seller of any property to be acquired in an
Investment described under the definition of “Permitted Investments” to be
applied against the purchase price for such Investment and (ii) consisting of an
agreement to sell, transfer, lease or otherwise dispose of any property in a
transaction excluded from the definition described under “Asset Sale,” in each
case, solely to the extent such Investment or sale, disposition, transfer or
lease, as the case may be, would have been permitted on the date of the creation
of such Lien;

     

    (45)           rights
of first refusal and purchase options in favor of Aluminum Company of America
(“Alcoa”) to
purchase Sandow Unit 4 and/or the real property related thereto, as described in
(i) the Sandow Unit 4 Agreement dated August 13, 1976, as amended, between Alcoa
and Texas Power & Light Company (“TPL”) and (ii) Deeds
dated March 14, 1978 and July 21, 1980, as amended, executed by Alcoa conveying
to TPL the Sandow Four real property; and

     

    (46)           any
amounts held by a trustee in the funds and accounts under any indenture securing
any revenue bonds issued for the benefit of the Issuer or any of its Restricted
Subsidiaries.

     

    For
purposes of this definition, the term “Indebtedness” shall be deemed to include
interest on such Indebtedness.

     

    “Person” means any
individual, corporation, limited liability company, partnership, joint venture,
association, joint stock company, trust, unincorporated organization, government
or any agency or political subdivision thereof or any other entity.

     

    “Plan of
Reorganization” means any plan of reorganization, plan of liquidation,
agreement for composition, or other type of plan of arrangement proposed in or
in connection with any insolvency or liquidation proceeding.

     

    “Pledge Agreement”
means the Pledge Agreement, dated November 16, 2009, by EFIH, with respect to
the security interests in favor of the Collateral Trustee, for the benefit of
the holders of Parity Lien Obligations, in all or any portion of the Collateral,
in each case, as amended, modified, restated, supplemented or replaced from time
to time.

     

    “Preferred Stock”
means any Equity Interest with preferential rights of payment of dividends or
upon liquidation, dissolution or winding up.

     

    “Private Placement
Legend” means the legend set forth in Section 2.06(g)(i) hereof to
be placed on all Notes issued under this Indenture except where otherwise
permitted by the provisions of this Indenture.

     

    “Purchase Money
Obligations” means any Indebtedness incurred to finance or refinance the
acquisition, leasing, construction, repair, restoration, replacement, expansion
or improvement of property (real or personal) or assets (other than Capital
Stock), and whether acquired through the direct acquisition of such property or
assets, or otherwise, incurred in respect of capital expenditures, including
Environmental CapEx Debt and Necessary CapEx Debt.

     

    “QIB” means a
“qualified institutional buyer” as defined in Rule 144A.

     

    “Qualified Proceeds”
means assets that are used or useful in, or Capital Stock of any Person engaged
in, a Similar Business; provided that the
fair market value of any such assets or Capital Stock shall be determined by the
Issuer in good faith.

     

    “Rating Agencies”
means each of Moody’s, S&P and Fitch, or if any of Moody’s, S&P or Fitch
shall not make a rating on the Notes or other investment publicly available, a
“nationally recognized statistical rating organization” within the meaning of
Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act selected by the Issuer which
shall be substituted for Moody’s, S&P or Fitch, or all of them, as the case
may be.

     

    “Receivables Facility”
means any of one or more receivables financing facilities or programs as
amended, supplemented, modified, extended, renewed, restated or refunded from
time to time, the Obligations of which are non-recourse (except for customary
representations, warranties, covenants and indemnities made in connection with
such facilities) to the Issuer or any of its Restricted Subsidiaries (other than
a Receivables Subsidiary) pursuant to which the Issuer or any of its Restricted
Subsidiaries purports to sell its accounts receivable to either (a) a
Person that is not a Restricted Subsidiary or (b) a Receivables Subsidiary
that in turn funds such purchase by purporting to sell its accounts receivable
to a Person that is not a Restricted Subsidiary or by borrowing from such a
Person or from another Receivables Subsidiary that in turn funds itself by
borrowing from such a Person.

     

    “Receivables Fees”
means distributions or payments made directly or by means of discounts with
respect to any accounts receivable or participation interest therein issued or
sold in connection with, and other fees paid to a Person that is not a
Restricted Subsidiary in connection with any Receivables Facility.

     

    “Receivables
Subsidiary” means any Subsidiary formed for the purpose of facilitating
or entering into one or more Receivables Facilities, and in each case engages
only in activities reasonably related or incidental thereto.

     

    “Record Date” for the
interest payable on any applicable Interest Payment Date means January 1 or July
1 (whether or not a Business Day), next preceding such Interest Payment
Date.

     

    “Registration Rights
Agreement” means (1) the Registration Rights Agreement related to the
Initial Notes, dated as of the Issue Date among the Issuer, the Guarantors and
the Initial Purchasers and (2) with respect to any Additional Notes, any
registration rights agreement among the Issuer and the other parties thereto
relating to the registration by the Issuer of such Additional Notes under the
Securities Act.

     

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

     

    “Regulation S Global
Note” means a Global Note in the form of Exhibit A hereto
bearing the Global Note Legends and the Private Placement Legend and deposited
with or on behalf of and registered in the name of the Depositary or its
nominees that shall be issued in a denomination equal to the outstanding
principal amount at maturity of the Notes resold in reliance on Regulation
S.

     

    “Related Business
Assets” means (A) except in the case of a Permitted Asset Swap of
Collateral, assets (other than cash or Cash Equivalents) used or useful in, or
securities of, a Similar Business; provided that any assets or securities
received by the Issuer or a Restricted Subsidiary in exchange for assets or
securities transferred by the Issuer or a Restricted Subsidiary shall not be
deemed to be Related Business Assets if they consist of securities of a Person,
unless upon receipt of the securities of such Person, such Person would become a
Restricted Subsidiary and (B) in the case of a Permitted Asset Swap of
Collateral, assets (other than cash or Cash Equivalents) used or useful in, or
Capital Stock of, a Similar Oncor Business; provided that any
Capital Stock received by EFIH in exchange for Collateral shall not be deemed to
be Related Business Assets, unless upon receipt of the Capital Stock of such
Person, such Person would become a Subsidiary of EFIH or a joint venture in
which EFIH has a significant equity interest (as determined by the Issuer in
good faith).

     

    “Responsible Officer”
means, when used with respect to the Trustee, any officer within the corporate
trust department of the Trustee (or any successor group of the Trustee) having
direct responsibility for the administration of this Indenture, or any other
officer to whom any corporate trust matter is referred because of such Person’s
knowledge of and familiarity with the particular subject.

     

    “Restoration
Certificate” shall mean, with respect to any Casualty Event, an Officer’s
Certificate provided to the Trustee prior to the 365th day
after such Casualty Event has occurred certifying (a) that the Issuer or such
Restricted Subsidiary intends to use the proceeds received in connection with
such Casualty Event to repair, restore or replace the property or assets in
respect of which such Casualty Event occurred, (b) the approximate costs of
completion of such repair, restoration or replacement and (c) that such repair,
restoration or replacement shall be completed within the later of (x) 450 days
after the date on which cash proceeds with respect to such Casualty Event were
received and (y) 180 days after delivery of such Restoration
Certificate.

     

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

     

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

     

    “Restricted
Investment” means an Investment other than a Permitted
Investment.

     

    “Restricted Payment Coverage
Ratio” means (i) for Restricted Payments (other than payments of cash
dividends or distributions on, or in respect of, the Issuer’s Capital Stock,
purchases for cash or other acquisitions for cash of any Capital Stock of the
Issuer or any direct or indirect parent of the Issuer for the purpose of paying
any such dividend or distribution to, or acquisitions of Capital Stock of any
direct or indirect parent of the Issuer for cash from, the Investors, or
guaranteeing any Indebtedness of any Affiliate of the Issuer for the purpose of
paying such dividend, making such distribution or so acquiring such Capital
Stock to or from the Investors, all such Restricted Payments being referred to
as “Investor
Payments”), the Fixed Charge Coverage Ratio of the Issuer and its
Restricted Subsidiaries treating the Oncor Subsidiaries as Restricted
Subsidiaries for purposes of such calculation and (ii) for Restricted Payments
constituting Investor Payments, the Fixed Charge Coverage Ratio of the Issuer
and its Restricted Subsidiaries.

     

    “Restricted Period”
means the 40-day distribution compliance period as defined in Regulation
S.

     

    “Restricted
Subsidiary” means, at any time, any direct or indirect Subsidiary of the
Issuer (including any Foreign Subsidiary) that is not then an Unrestricted
Subsidiary; provided, however, that upon an
Unrestricted Subsidiary’s ceasing to be an Unrestricted Subsidiary, such
Subsidiary shall be included in the definition of “Restricted
Subsidiary.”

     

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

     

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

     

    “Rule 903” means Rule
903 promulgated under the Securities Act.

     

    “Rule 904” means Rule
904 promulgated under the Securities Act.

     

    “S&P” means
Standard & Poor’s, a Standard & Poor’s Financial Services LLC
business, and any successor to its rating agency business.

     

    “Sale and Lease-Back
Transaction” means any arrangement providing for the leasing by the
Issuer or any of its Restricted Subsidiaries of any real or tangible personal
property, which property has been or is to be sold or transferred by the Issuer
or such Restricted Subsidiary to a third Person in contemplation of such
leasing.

     

    “SEC” means the U.S.
Securities and Exchange Commission.

     

    “Secured Debt
Documents” means the Parity Lien Documents and the Junior Lien
Documents.

     

    “Secured Debt
Obligations” means Parity Lien Obligations and Junior Lien
Obligations.

     

    “Secured Indebtedness”
means any Indebtedness of the Issuer or any of its Restricted Subsidiaries
secured by a Lien.

     

    “Secured Lien Debt”
means Parity Lien Debt and Junior Lien Debt.

     

    “Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations of the SEC
promulgated thereunder.

     

    “Secured Notes Issue
Date” means November 16, 2009.

     

    “Security Documents”
means the Collateral Trust Agreement, the Pledge Agreement, and all other
security agreements, pledge agreements, collateral assignments, mortgages,
collateral agency agreements, deed of trust or other grants or transfers for
security executed and delivered by the Issuer, a Guarantor or any other obligor
under the Notes creating (or purporting to create) a Lien upon Collateral in
favor of the Collateral Trustee for the benefit of the holders of the Secured
Debt Obligations, in each case, as amended, modified, renewed, restated or
replaced, in whole or in part, from time to time, in accordance with its
terms.

     

    “Senior Indebtedness”
means:

     

    (1)           all
Indebtedness of the Issuer or any Guarantor outstanding under the TCEH Senior
Secured Facilities, the TCEH Notes and related guarantees, the 9.75% Notes and
related guarantees, the EFIH Notes and related guarantees or the Notes and
related Guarantees (including interest accruing on or after the filing of any
petition in bankruptcy or similar proceeding or for reorganization of the Issuer
or any Guarantor (at the rate provided for in the documentation with respect
thereto, regardless of whether or not a claim for post-filing interest is
allowed in such proceedings)), and any and all other fees, expense reimbursement
obligations, indemnification amounts, penalties, and other amounts (whether
existing on the Issue Date or thereafter created or incurred) and all
obligations of the Issuer or any Guarantor to reimburse any bank or other Person
in respect of amounts paid under letters of credit, acceptances or other similar
instruments;

     

    (2)           all
Hedging Obligations (and guarantees thereof) owing to a Lender (as defined in
the TCEH Senior Secured Facilities) or any Affiliate of such Lender (or any
Person that was a Lender or an Affiliate of such Lender at the time the
applicable agreement giving rise to such Hedging Obligation was entered into);
provided that
such Hedging Obligations are permitted to be incurred under the terms of this
Indenture;

     

    (3)           any
other Indebtedness of the Issuer or any Guarantor permitted to be incurred under
the terms of this Indenture, unless the instrument under which such Indebtedness
is incurred expressly provides that it is subordinated in right of payment to
the Notes or any related Guarantee; and

     

    (4)           all
Obligations with respect to the items listed in the preceding clauses (1), (2)
and (3);

     

    provided, however, that Senior
Indebtedness shall not include:

     

    (a)           any
obligation of such Person to the Issuer or any of its Subsidiaries;

     

    (b)           any
liability for federal, state, local or other taxes owed or owing by such
Person;

     

    (c)           any
accounts payable or other liability to trade creditors arising in the ordinary
course of business;

     

    (d)           any
Indebtedness or other Obligation of such Person which is subordinate or junior
in any respect to any other Indebtedness or other Obligation of such
Person;

     

    (e)           that
portion of any Indebtedness which at the time of incurrence is incurred in
violation of this Indenture;

     

    (f)           EFCH’s
Floating Rate Junior Subordinated Debentures, Series D due 2037; or

     

    (g)           EFCH’s
8.175% Fixed Junior Subordinated Debentures, Series E due 2037.

     

    “Series of Junior Lien
Debt” means, severally, each issue or series of Junior Lien Debt for
which a single transfer register is maintained (provided that any Hedging
Obligations constituting Junior Lien Debt shall be deemed part of the Series of
Junior Lien Debt to which it relates).

     

    “Series of Parity Lien
Debt” means, severally, the Notes, the 9.75% Notes, the EFIH Notes and
any Additional Notes or Exchange Notes or other Indebtedness that constitutes
Parity Lien Debt (provided that any Hedging Obligations constituting Parity Lien
Debt shall be deemed part of the Series of Parity Lien Debt to which it
relates).

     

    “Series of Secured Lien
Debt” means each Series of Parity Lien Debt and each Series of Junior
Lien Debt.

     

    “Shelf Registration
Statement” means the Shelf Registration Statement as defined in the
Registration Rights Agreement.

     

    “Shell Wind” means a
joint venture with Shell WindEnergy Inc. (or a similar entity) in which the
Issuer and its Restricted Subsidiaries have up to a 50% ownership interest
relating to the joint development of a 3,000 megawatt wind project in Texas and
other renewable energy projects in Texas.

     

    “Significant
Subsidiary” means any Restricted Subsidiary that would be a “significant
subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated
pursuant to the Securities Act, as such regulation is in effect on the Closing
Date.

     

    “Similar Business”
means any business conducted or proposed to be conducted by the Issuer and its
Subsidiaries on the Closing Date or any business that is similar, reasonably
related, incidental or ancillary thereto.

     

    “Similar Oncor
Business” means any business which is primarily engaged in a regulated
electricity or other energy transmission or distribution business in the United
States (as determined by the Issuer in good faith).

     

    “Sponsor Management
Agreement” means the management agreement between certain of the
management companies associated with the Investors and the Issuer.

     

    “Stated Maturity”
means, with respect to any installment of interest or principal on any series of
Indebtedness, the date on which the payment of interest or principal was
scheduled to be paid in the documentation governing such Indebtedness as of the
date of this Indenture, and shall not include any contingent obligations to
repay, redeem or repurchase any such interest or principal prior to the date
originally scheduled for the payment thereof.

     

    “Subordinated
Indebtedness” means,

     

    (1)           any
Indebtedness of the Issuer which is by its terms subordinated in right of
payment to the Notes, and

     

    (2)           any
Indebtedness of any Guarantor which is by its terms subordinated in right of
payment to the Guarantee of such entity of the Notes.

     

    “Subsidiary” means,
with respect to any Person:

     

    (1)           any
corporation, association, or other business entity (other than a partnership,
joint venture, limited liability company or similar entity) of which more than
50% of the total voting power of shares of Capital Stock entitled (without
regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time of determination owned or
controlled, directly or indirectly, by such Person or one or more of the other
Subsidiaries of that Person or a combination thereof; and

     

    (2)           any
partnership, joint venture, limited liability company or similar entity of
which

     

    (x)           more
than 50% of the capital accounts, distribution rights, total equity and voting
interests or general or limited partnership interests, as applicable, are owned
or controlled, directly or indirectly, by such Person or one or more of the
other Subsidiaries of that Person or a combination thereof whether in the form
of membership, general, special or limited partnership or otherwise,
and

     

    (y)           such
Person or any Restricted Subsidiary of such Person is a controlling general
partner or otherwise controls such entity.

     

    “Successor Oncor
Business” means any Person the Capital Stock of which is received by EFIH
in an Asset Sale, including a Permitted Asset Swap, of Collateral or as a
dividend or distribution from an Oncor Subsidiary.

     

    “TCEH” means Texas
Competitive Electric Holdings Company LLC.

     

    “TCEH Notes” means the
10.25% Senior Notes due 2015, the 10.25% Senior Notes due 2015, Series B and the
10.50%/11.25% Senior Toggle Notes due 2016, in each case issued by TCEH and TCEH
Finance, Inc., including the guarantees thereof and PIK interest which has been
or may be paid with respect thereto.

     

    “TCEH Senior Interim
Facility” means the interim loan agreement, dated as of the Closing Date,
by and among EFCH, as guarantor, TCEH, as borrower, the other guarantors parties
thereto, the lenders party thereto in their capacities as lenders thereunder and
Morgan Stanley Senior Funding, Inc., as Administrative Agent, including any
guarantees, instruments and agreements executed in connection therewith, and any
amendments, supplements, modifications or restatements thereof.

     

    “TCEH Senior Secured
Facilities” means the credit agreement dated as of the Closing Date, as
amended on August 7, 2009, by and among EFCH, as guarantor, TCEH, as borrower,
the lenders party thereto in their capacities as lenders thereunder and
Citibank, N.A., as Administrative Agent, including any guarantees, collateral
documents, instruments and agreements executed in connection therewith, and any
additional amendments, supplements, modifications, extensions, renewals,
restatements, refundings or refinancings thereof and any indentures or credit
facilities or commercial paper facilities with banks or other institutional
lenders or investors that replace, refund or refinance any part of the loans,
notes, other credit facilities or commitments thereunder, including any such
replacement, refunding or refinancing facility or indenture that increases the
amount borrowable thereunder or alters the maturity thereof (provided that such
increase in borrowings is permitted under Section 4.09 hereof).

     

    “TCEH Transfer” means
the sale, transfer, disposition or spin-off (including by way of merger, wind-up
or consolidation) of (a) the membership interests or other common Equity
Interests of EFCH, TCEH or another Restricted Subsidiary that holds all or
substantially all of the assets of TCEH and its Subsidiaries such that EFCH,
TCEH or such Restricted Subsidiary ceases to be a Subsidiary of the Issuer or
(b) all or substantially all of the assets of TCEH and its Subsidiaries, in each
case other than any such transfer to a Restricted Subsidiary of the
Issuer.

     

    “Total Assets” means
the total assets of the Issuer and its Restricted Subsidiaries on a consolidated
basis, as shown on the most recent consolidated balance sheet of the Issuer or
such other Person as may be expressly stated.

     

    “Transactions” means
the transactions contemplated by the Transaction Agreement, borrowings under the
TCEH Senior Secured Facilities, the EFH Senior Interim Facility, the TCEH Senior
Interim Facility, the Oncor Electric Delivery Facility and any Receivables
Facility as in effect on the Closing Date, any repayments of indebtedness of the
Issuer and its Restricted Subsidiaries in connection therewith, and the issuance
of the 10.875% Senior Notes due 2017, 11.250%/12.000% Senior Toggle Notes due
2017, the TCEH Notes and any repayments of Indebtedness of the Issuer and its
Restricted Subsidiaries in connection therewith.

     

    “Transaction
Agreement” means the Agreement and Plan of Merger, dated as of February
25, 2007, among Merger Sub, Texas Energy Future Holdings Limited Partnership and
the Issuer.

     

    “Treasury Rate” means,
as of any Redemption Date, the yield to maturity as of such Redemption Date of
United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519) that
has become publicly available at least two Business Days prior to the Redemption
Date (or, if such Statistical Release is no longer published, any publicly
available source of similar market data)) most nearly equal to the period from
the Redemption Date to January 15, 2015; provided, however, that if the
period from the Redemption Date to January 15, 2015 is less than one year, the
weekly average yield on actually traded United States Treasury securities
adjusted to a constant maturity of one year shall be used.

     

    “Trust Indenture Act”
or “TIA” means
the Trust Indenture Act of 1939, as amended (15 U.S.C.
§§ 77aaa-77bbbb).

     

    “Trustee” means The
Bank of New York Mellon Trust Company, N.A., as trustee, until a successor
replaces it in accordance with the applicable provisions of this Indenture and,
thereafter, means the successor serving hereunder.

     

    "Uniform Commercial
Code" means the Uniform Commercial Code as in effect from time to time in
any applicable jurisdiction.

     

    “Unit” shall mean an
individual power plant generation system comprised of all necessary physically
connected generators, reactors, boilers, combustion turbines and other prime
movers operated together to independently generate electricity.

     

    “Unrestricted Cash”
means, as of any date, without duplication, (a) all cash and Cash Equivalents
(in each case, free and clear of all Liens, other than nonconsensual Liens
permitted by Section 4.12 hereof and Liens permitted by clause (23),
subclauses (i) and (ii) of clause (26) and clause (33) of the definition of
Permitted Liens, included in the cash and cash equivalents accounts listed on
the consolidated balance sheet of the Issuer and its Restricted Subsidiaries as
of such date and (b) all unrestricted margin deposits related to commodity
positions listed on the consolidated balance sheet of Issuer and the Restricted
Subsidiaries.

     

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

     

    “Unrestricted Global
Note” means a permanent Global Note, substantially in the form of Exhibit A hereto,
that bears the Global Note Legend and that has the “Schedule of Exchanges of
Interests in the Global Note” attached thereto, and that is deposited with or on
behalf of and registered in the name of the Depositary, representing one or more
Global Notes that do not bear and are not required to bear the Private Placement
Legend.

     

    “Unrestricted
Subsidiary” means:

     

    (1)           each
of the Oncor Subsidiaries, Comanche Peak Nuclear Power Company, Nuclear Energy
Future Holdings LLC and Nuclear Energy Future Holdings II LLC;

     

    (2)           any
Subsidiary of the Issuer other than EFIH or any other Guarantor owning
Collateral which at the time of determination is an Unrestricted Subsidiary (as
designated by the Issuer, as provided below); and

     

    (3)           any
Subsidiary of an Unrestricted Subsidiary.

     

    The
Issuer may designate any Subsidiary of the Issuer (including any existing
Subsidiary and any newly acquired or newly formed Subsidiary) other than EFIH or
any other Guarantor owning Collateral to be an Unrestricted Subsidiary unless
such Subsidiary or any of its Subsidiaries owns any Equity Interests or
Indebtedness of, or owns or holds any Lien on, any property of, the Issuer or
any Subsidiary of the Issuer (other than solely any Subsidiary of the Subsidiary
to be so designated); provided
that

     

    (1)           any
Unrestricted Subsidiary must be an entity of which the Equity Interests entitled
to cast at least a majority of the votes that may be cast by all Equity
Interests having ordinary voting power for the election of directors or Persons
performing a similar function are owned, directly or indirectly, by the
Issuer;

     

    (2)           such
designation complies with Section 4.07 hereof; and

     

    (3)           each
of:

     

    (a)           the
Subsidiary to be so designated; and

     

    (b)           its
Subsidiaries

     

    has not
at the time of designation, and does not thereafter, create, incur, issue,
assume, guarantee or otherwise become directly or indirectly liable with respect
to any Indebtedness pursuant to which the lender has recourse to any of the
assets of the Issuer or any Restricted Subsidiary.

     

    The
Issuer may designate any Unrestricted Subsidiary to be a Restricted Subsidiary;
provided that,
immediately after giving effect to such designation, no Default shall have
occurred and be continuing and either:

     

    (1)           in
the case of any Subsidiary of the Issuer other than TCEH and its Subsidiaries,
(A) the Issuer could incur at least $1.00 of additional Indebtedness pursuant to
clause (i) of the Fixed Charge Coverage Ratio test as set forth in Section
4.09(a) hereof; or (B) the Fixed Charge Coverage Ratio for the Issuer and its
Restricted Subsidiaries would be greater than such ratio for the Issuer and its
Restricted Subsidiaries immediately prior to such designation, in each case on a
pro forma basis taking
into account such designation; or

     

    (2)           in
the case of TCEH and any of its Subsidiaries, (A) TCEH could incur at least
$1.00 of additional Indebtedness pursuant to clause (ii) of such Fixed Charge
Coverage Ratio test or (B) such Fixed Charge Coverage Ratio for TCEH and its
Restricted Subsidiaries would be greater than such ratio for TCEH and its
Restricted Subsidiaries immediately prior to such designation, in each case on a
pro forma basis taking
into account such designation.

     

    Any such
designation by the Issuer shall be notified by the Issuer to the Trustee by
promptly filing with the Trustee a copy of the resolution of the Board of
Directors of the Issuer or any committee thereof giving effect to such
designation and an Officer’s Certificate certifying that such designation
complied with the foregoing provisions.

     

    “U.S. Person” means a
U.S. person as defined in Rule 902(k) promulgated under the Securities
Act.

     

    “Voting Stock” of any
Person as of any date means the Capital Stock of such Person that is at the time
entitled to vote in the election of the Board of Directors of such
Person.

     

    “Weighted Average Life to
Maturity” means, when applied to any Indebtedness, Disqualified Stock or
Preferred Stock, as the case may be, at any date, the quotient obtained by
dividing:

     

    (1)           the
sum of the products of the number of years from the date of determination to the
date of each successive scheduled principal payment of such Indebtedness or
redemption or similar payment with respect to such Disqualified Stock or
Preferred Stock multiplied by the amount of such payment; by

     

    (2)           the
sum of all such payments.

     

    “Wholly-Owned
Subsidiary” of any Person means a Subsidiary of such Person, 100% of the
outstanding Equity Interests of which (other than directors’ qualifying shares)
shall at the time be owned by such Person or by one or more Wholly-Owned
Subsidiaries of such Person.

     

    Section
1.02 Other
Definitions

     

    
      	
              .

            

    

     

    
      	
              Term

            	
              Defined
      in

              Section

            
	
              “Acceptable
      Commitment”                                                                                                       

            	
              4.10(b)

            
	
              “Affiliate
      Transaction”                                                                                                       

            	
              4.11(a)

            
	
              “Asset Sale
      Offer”                                                                                                       

            	
              4.10(d)

            
	
              “Change of Control
      Offer”                                                                                                       

            	
              4.14(a)

            
	
              “Change of Control
      Payment”                                                                                                       

            	
              4.14(a)

            
	
              “Change of Control Payment
      Date”                                                                                                         

            	
              4.14(a)(2)

            
	
              “Collateral Asset Sale
      Offer”                                                                                                         

            	
              4.10(h)

            
	
              “Collateral Excess
      Proceeds”                                                                                                         

            	
              4.10(h)

            
	
              “Issuer Authentication
      Order”                                                                                                         

            	
              2.02

            
	
              “Covenant
      Defeasance”                                                                                                         

            	
              8.03

            
	
              “DTC”                                                                                                         

            	
              2.03

            
	
              “Event of
      Default”                                                                                                         

            	
              6.01(a)

            
	
              “Excess
      Proceeds”                                                                                                         

            	
              4.10(d)

            
	
              “incur”; “incurrence”                                                                                                         

            	
              4.09(a)

            
	
              “Legal
      Defeasance”                                                                                                         

            	
              8.02

            
	
              “Note
      Register”                                                                                                         

            	
              2.03

            
	
              “Offer
      Amount”                                                                                                         

            	
              3.09(b)

            
	
              “Offer
      Period”                                                                                                         

            	
              3.09(b)

            
	
              “Paying
      Agent”                                                                                                         

            	
              2.03

            
	
              “Permitted Transfer Supplemental
      Indenture”                                                                                                         

            	
              4.16(a)(2)

            
	
              “Purchase
      Date”                                                                                                         

            	
              3.09(b)

            
	
              “Redemption
      Date”                                                                                                         

            	
              3.07(a)

            
	
              “Refinancing
      Indebtedness”                                                                                                         

            	
              4.09(b)(13)

            
	
              “Refunding Capital
      Stock”                                                                                                         

            	
              4.07(b)(2)

            
	
              “Registrar”                                                                                                         

            	
              2.03

            
	
              “Restricted
      Payments”                                                                                                         

            	
              4.07(a)

            
	
              “Second
      Commitment”                                                                                                         

            	
              4.10(b)

            
	
              “Successor
      Company”                                                                                                         

            	
              5.01(a)(1)

            
	
              “Successor EFIH
      Company”                                                                                                         

            	
              4.16(a)(1)

            
	
              “TCEH Transfer Supplemental
      Indenture”                                                                                                         

            	
              4.17(a)

            
	
              “Treasury Capital
      Stock”                                                                                                         

            	
              4.07(b)(2)

            

    

    

    Section
1.03 Incorporation by Reference
of Trust Indenture Act

     

    
      	
              .

            

    

     

    Whenever
this Indenture refers to a provision of the Trust Indenture Act, the provision
is incorporated by reference in and made a part of this Indenture.

     

    The
following Trust Indenture Act terms used in this Indenture have the following
meanings:

     

    “indenture securities”
means the Notes;

     

    “indenture security
holder” means a Holder of a Note;

     

    “indenture to be
qualified” means this Indenture;

     

    “indenture trustee” or
“institutional
trustee” means the Trustee; and

     

    “obligor” on the Notes
and the Guarantees means the Issuer and the Guarantors, respectively, and any
successor obligor upon the Notes and the Guarantees, respectively.

     

    All other
terms used in this Indenture that are defined by the Trust Indenture Act,
defined by Trust Indenture Act reference to another statute or defined by SEC
rule under the Trust Indenture Act have the meanings so assigned to
them.

     

    Section
1.04 Rules of
Construction

     

    
      	
              .

            

    

     

    Unless
the context otherwise requires:

     

    (a) a term
has the meaning assigned to it;

     

    (b) an
accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

     

    (c) “or” is
not exclusive;

     

    (d) words in
the singular include the plural, and in the plural include the
singular;

     

    (e) “will”
shall be interpreted to express a command;

     

    (f) provisions
apply to successive events and transactions;

     

    (g) references
to sections of, or rules under, the Securities Act shall be deemed to include
substitute, replacement or successor sections or rules adopted by the SEC from
time to time;

     

    (h) unless
the context otherwise requires, any reference to an “Article,” “Section” or
“clause” refers to an Article, Section or clause, as the case may be, of
this Indenture;

     

    (i) the words
“herein,” “hereof” and “hereunder” and other words of similar import refer to
this Indenture as a whole and not any particular Article, Section,
clause or other subdivision; and

     

    (j) the term
“consolidated” with respect to any Person refers to such Person on a
consolidated basis in accordance with GAAP, but excluding from such
consolidation any Unrestricted Subsidiary as if such Unrestricted Subsidiary
were not an Affiliate of such Person.

     

    Section
1.05 Acts of
Holders

     

    
      	
              .

            

    

     

    (a) Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be given or taken by Holders may be
embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by an agent duly appointed in
writing.  Except as herein otherwise expressly provided, such action
shall become effective when such instrument or instruments or record or both are
delivered to the Trustee and, where it is hereby expressly required, to the
Issuer.  Proof of execution of any such instrument or of a writing
appointing any such agent, or the holding by any Person of a Note, shall be
sufficient for any purpose of this Indenture and (subject to Section 7.01
hereof) conclusive in favor of the Trustee and the Issuer, if made in the manner
provided in this Section 1.05.

     

    (b) The fact
and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by the certificate of
any notary public or other officer authorized by law to take acknowledgments of
deeds, certifying that the individual signing such instrument or writing
acknowledged to him the execution thereof.  Where such execution is by
or on behalf of any legal entity other than an individual, such certificate or
affidavit shall also constitute proof of the authority of the Person executing
the same.  The fact and date of the execution of any such instrument
or writing, or the authority of the Person executing the same, may also be
proved in any other manner that the Trustee deems sufficient.

     

    (c) The
ownership of Notes shall be proved by the Note Register.

     

    (d) Any
request, demand, authorization, direction, notice, consent, waiver or other
action by the Holder of any Note shall bind every future Holder of the same Note
and the Holder of every Note issued upon the registration of transfer thereof or
in exchange therefor or in lieu thereof, in respect of any action taken,
suffered or omitted by the Trustee or the Issuer in reliance thereon, whether or
not notation of such action is made upon such Note.

     

    (e) The
Issuer may, in the circumstances permitted by the Trust Indenture Act, set a
record date for purposes of determining the identity of Holders entitled to give
any request, demand, authorization, direction, notice, consent, waiver or take
any other act, or to vote or consent to any action by vote or consent authorized
or permitted to be given or taken by Holders.  Unless otherwise
specified, if not set by the Issuer prior to the first solicitation of a Holder
made by any Person in respect of any such action, or in the case of any such
vote, prior to such vote, any such record date shall be the later of 10 days
prior to the first solicitation of such consent or the date of the most recent
list of Holders furnished to the Trustee prior to such
solicitation.

     

    (f) Without
limiting the foregoing, a Holder entitled to take any action hereunder with
regard to any particular Note may do so with regard to all or any part of the
principal amount of such Note or by one or more duly appointed agents, each of
which may do so pursuant to such appointment with regard to all or any part of
such principal amount.  Any notice given or action taken by a Holder
or its agents with regard to different parts of such principal amount pursuant
to this paragraph shall have the same effect as if given or taken by separate
Holders of each such different part.

     

    (g) Without
limiting the generality of the foregoing, a Holder, including DTC that is the
Holder of a Global Note, may make, give or take, by a proxy or proxies duly
appointed in writing, any request, demand, authorization, direction, notice,
consent, waiver or other action provided in this Indenture to be made, given or
taken by Holders, and DTC that is the Holder of a Global Note may provide its
proxy or proxies to the beneficial owners of interests in any such Global Note
through such depositary’s standing instructions and customary
practices.

     

    (h) The
Issuer may fix a record date for the purpose of determining the Persons who are
beneficial owners of interests in any Global Note held by DTC entitled under the
procedures of such depositary to make, give or take, by a proxy or proxies duly
appointed in writing, any request, demand, authorization, direction, notice,
consent, waiver or other action provided in this Indenture to be made, given or
taken by Holders.  If such a record date is fixed, the Holders on such
record date or their duly appointed proxy or proxies, and only such Persons,
shall be entitled to make, give or take such request, demand, authorization,
direction, notice, consent, waiver or other action, whether or not such Holders
remain Holders after such record date.  No such request, demand,
authorization, direction, notice, consent, waiver or other action shall be valid
or effective if made, given or taken more than 90 days after such record
date.

     

    ARTICLE
2

     

    

     

    THE
NOTES

     

    Section
2.01 Form and Dating;
Terms

     

    
      	
              .

            

    

     

    (a) General.  The
Notes and the Trustee’s certificate of authentication shall be substantially in
the form of Exhibit
A hereto.  The Notes may have notations, legends or
endorsements required by law, stock exchange rules or usage.  Each
Note shall be dated the date of its authentication.  The Notes shall
be in minimum denominations of $2,000 and integral multiples of $1,000 in excess
thereof.

     

    (b) Global
Notes.  Notes issued in global form shall be substantially in
the form of Exhibit
A hereto (including, in each case, the Global Note Legend thereon and the
“Schedule of Exchanges of Interests in the Global Note” attached
thereto).  Notes issued in definitive form shall be substantially in
the form of Exhibit
A  attached hereto (but without, in each case, the Global Note
Legend thereon and without the “Schedule of Exchanges of Interests in the Global
Note” attached thereto).  Each Global Note shall represent such of the
outstanding Notes as shall be specified in the “Schedule of Exchanges of
Interests in the Global Note” attached thereto and each shall provide that it
shall represent up to the aggregate principal amount of Notes from time to time
endorsed thereon and that the aggregate principal amount of outstanding Notes
represented thereby may from time to time be reduced or increased, as
applicable, to reflect exchanges and redemptions.  Any endorsement of
a Global Note to reflect the amount of any increase or decrease in the aggregate
principal amount of outstanding Notes represented thereby shall be made by the
Trustee or the Custodian, at the direction of the Trustee, in accordance with
instructions given by the Holder thereof as required by Section 2.06
hereof.

     

    (c) [Reserved]

     

    (d) Terms.  The
aggregate principal amount of Notes that may be authenticated and delivered
under this Indenture is unlimited.

     

    The terms
and provisions contained in the Notes shall constitute, and are hereby expressly
made, a part of this Indenture and the Issuer, the Guarantors and the Trustee,
by their execution and delivery of this Indenture, expressly agree to such terms
and provisions and to be bound thereby.  However, to the extent any
provision of any Note conflicts with the express provisions of this Indenture,
the provisions of this Indenture shall govern and be controlling.

     

    The Notes
shall be subject to repurchase by the Issuer pursuant to an Asset Sale Offer or
a Collateral Asset Sale Offer as provided in Section 4.10 hereof or a
Change of Control Offer as provided in Section 4.14 hereof.  The
Notes shall not be redeemable other than as provided in Article 3
hereof.

     

    Additional
Notes ranking pari
passu with the Initial
Notes may be created and issued from time to time by the Issuer without notice
to or consent of the Holders and shall be consolidated with and form a single
class with the Initial Notes and shall have the same terms as to status,
redemption or otherwise as the Initial Notes; provided that the
Issuer’s ability to issue Additional Notes shall be subject, among other things,
to the Issuer’s compliance with Sections 4.09 and 4.12
hereof.  Except as described under Article 9 hereof, the Initial Notes
offered by the Issuer and any Additional Notes subsequently issued under this
Indenture shall be treated as a single class for all purposes under this
Indenture, including, among other things, waivers, amendments, redemptions and
offers to purchase.  Unless the context requires otherwise, references
to “Notes” for all purposes under this Indenture include any Additional Notes
that are actually issued.  Any Additional Notes shall be issued with
the benefit of an indenture supplemental to this Indenture substantially in the
form attached as Exhibit G
hereto.

     

    (e) Euroclear and Clearstream
Procedures Applicable.  The provisions of the “Operating
Procedures of the Euroclear System” and “Terms and Conditions Governing Use of
Euroclear” and the “General Terms and Conditions of Clearstream Banking” and
“Customer Handbook” of Clearstream shall be applicable to transfers of
beneficial interests in the Regulation S Global Notes that are held by
Participants through Euroclear or Clearstream.

     

    Section
2.02 Execution and
Authentication

     

    
      	
              .

            

    

     

    At least
one Officer shall execute the Notes on behalf of the Issuer by manual or
facsimile signature.

     

    If an
Officer whose signature is on a Note no longer holds that office at the time a
Note is authenticated, the Note shall nevertheless be valid.

     

    A Note
shall not be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose until authenticated substantially in the form of
Exhibit A
attached hereto by the manual signature of the Trustee.  The signature
shall be conclusive evidence that the Note has been duly authenticated and
delivered under this Indenture.

     

    On the
Issue Date, the Trustee shall, upon receipt of a written order of the Issuer
signed by an Officer (an “Issuer Authentication
Order”), authenticate and deliver the Initial Notes.  In
addition, at any time, and from time to time, the Trustee shall, upon receipt of
an Issuer Authentication Order, authenticate and deliver any Additional Notes
for an aggregate principal amount specified in such Issuer Authentication Order
for such Additional Notes.  Such Issuer Authentication Order shall
specify the amount of the Notes to be authenticated and, in the case of any
issuance of Additional Notes, shall certify that such issuance is in compliance
with Sections 4.09 and 4.12 hereof.

     

    The
Trustee may appoint an authenticating agent acceptable to the Issuer to
authenticate Notes.  An authenticating agent may authenticate Notes
whenever the Trustee may do so.  Each reference in this Indenture to
authentication by the Trustee includes authentication by such
agent.  An authenticating agent has the same rights as an Agent to
deal with Holders or an Affiliate of the Issuer.

     

    Section
2.03 Registrar and Paying
Agent

     

    
      	
              .

            

    

     

    The
Issuer shall maintain an office or agency where Notes may be presented for
registration of transfer or for exchange (“Registrar”) and an
office or agency where Notes may be presented for payment (“Paying
Agent”).  The Registrar shall keep a register of the Notes
(“Note
Register”) and of their transfer and exchange.  The Issuer may
appoint one or more co-registrars and one or more additional paying
agents.  The term “Registrar” includes
any co-registrar and the term “Paying Agent”
includes any additional paying agent.  The Issuer may change any
Paying Agent or Registrar without prior notice to any Holder.

     

    The
Issuer shall notify the Trustee in writing of the name and address of any Agent
not a party to this Indenture.  If the Issuer fails to appoint or
maintain another entity as Registrar or Paying Agent, the Trustee shall act as
such Registrar or Paying Agent.  The Issuer or any of its Subsidiaries
may act as Registrar or Paying Agent.

     

    The
Issuer initially appoints The Depository Trust Company (“DTC”) to act as
Depositary with respect to the Global Notes.

     

    The
Issuer initially appoints the Trustee to act as the Registrar and Paying Agent
for the Notes and to act as Custodian with respect to the Global
Notes.

     

    Section
2.04 Paying Agent to Hold Money
in Trust

     

    
      	
              .

            

    

     

    The
Issuer shall require each Paying Agent other than the Trustee to agree in
writing that the Paying Agent shall hold in trust for the benefit of Holders or
the Trustee all money held by the Paying Agent for the payment of principal,
premium, Additional Interest, if any, or cash interest on the Notes, and shall
notify the Trustee of any default by the Issuer in making any such
payment.  While any such default continues, the Trustee may require a
Paying Agent to pay all money held by it to the Trustee.  The Issuer
at any time may require a Paying Agent to pay all money held by it to the
Trustee.  Upon payment over to the Trustee, the Paying Agent (if other
than the Issuer or a Subsidiary) shall have no further liability for the
money.  If the Issuer or a Subsidiary acts as Paying Agent, it shall
segregate and hold in a separate trust fund for the benefit of the Holders all
money held by it as Paying Agent.  Upon any bankruptcy or
reorganization proceedings relating to the Issuer, the Trustee shall serve as
Paying Agent for the Notes.

     

    Section
2.05 Holder
Lists

     

    
      	
              .

            

    

     

    The
Trustee shall preserve in as current a form as is reasonably practicable the
most recent list available to it of the names and addresses of all Holders and
shall otherwise comply with Trust Indenture Act Section 312(a).  If
the Trustee is not the Registrar, the Issuer shall furnish to the Trustee at
least two Business Days before each Interest Payment Date and at such other
times as the Trustee may request in writing, a list in such form and as of such
date as the Trustee may reasonably require of the names and addresses of the
Holders of Notes and the Issuer shall otherwise comply with Trust Indenture Act
Section 312(a).

     

    Section
2.06 Transfer and
Exchange

     

    
      	
              .

            

    

     

    (a) Transfer and Exchange of
Global Notes.  Except as otherwise set forth in this
Section 2.06, a Global Note may be transferred, in whole and not in part,
only to another nominee of the Depositary or to a successor Depositary or a
nominee of such successor Depositary.  A beneficial interest in a
Global Note may not be exchanged for a Definitive Note unless (i) the Depositary
(x) notifies the Issuer that it is unwilling or unable to continue as Depositary
for such Global Note or (y) has ceased to be a clearing agency registered under
the Exchange Act and, in either case, a successor Depositary is not appointed by
the Issuer within 120 days or (ii) there shall have occurred and be continuing a
Default with respect to the Notes.  Upon the occurrence of any of the
preceding events in (i) or (ii) above, Definitive Notes delivered in exchange
for any Global Note or beneficial interests therein will be registered in the
names, and issued in any approved denominations, requested by or on behalf of
the Depositary (in accordance with its customary procedures).  Global
Notes also may be exchanged or replaced, in whole or in part, as provided in
Sections 2.07 and 2.10 hereof.  Every Note authenticated and delivered
in exchange for, or in lieu of, a Global Note or any portion thereof, pursuant
to this Section 2.06 or Section 2.07 or 2.10 hereof, shall be
authenticated and delivered in the form of, and shall be, a Global Note, except
for Definitive Notes issued subsequent to any of the preceding events in (i) or
(ii) above and pursuant to Section 2.06(c) hereof.  A Global Note may
not be exchanged for another Note other than as provided in this
Section 2.06(a); provided, however, that
beneficial interests in a Global Note may be transferred and exchanged as
provided in Section 2.06(b), (c) or (f) hereof.

     

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

     

    (i) Transfer of Beneficial
Interests in the Same Global Note.  Beneficial interests in any
Restricted Global Note may be transferred to Persons who take delivery thereof
in the form of a beneficial interest in the same Restricted Global Note in
accordance with the transfer restrictions set forth in the Private Placement
Legend; provided, however, that prior
to the expiration of the Restricted Period, transfers of beneficial interests in
a Regulation S Global Note may not be made to a U.S. Person or for the account
or benefit of a U.S. Person (other than an Initial Purchaser). Beneficial
interests in any Unrestricted Global Note may be transferred to Persons who take
delivery thereof in the form of a beneficial interest in an Unrestricted Global
Note.  No written orders or instructions shall be required to be
delivered to the Registrar to effect the transfers described in this
Section 2.06(b)(i).

     

    (ii) All Other Transfers and
Exchanges of Beneficial Interests in Global Notes.  In
connection with all transfers and exchanges of beneficial interests that are not
subject to Section 2.06(b)(i) hereof, the transferor of such beneficial
interest must deliver to the Registrar either (A) (1) a written order from
a Participant or an Indirect Participant given to the Depositary in accordance
with the Applicable Procedures directing the Depositary to credit or cause to be
credited a beneficial interest in another Global Note in an amount equal to the
beneficial interest to be transferred or exchanged and (2) instructions given in
accordance with the Applicable Procedures containing information regarding the
Participant account to be credited with such increase or (B) (1) a written
order from a Participant or an Indirect Participant given to the Depositary in
accordance with the Applicable Procedures directing the Depositary to cause to
be issued a Definitive Note of the same series in an amount equal to the
beneficial interest to be transferred or exchanged and (2) instructions given by
the Depositary to the Registrar containing information regarding the Person in
whose name such Definitive Note shall be registered to effect the transfer or
exchange referred to in (1) above.  Upon consummation of an Exchange
Offer by the Issuer in accordance with Section 2.06(f) hereof, the requirements
of this Section 2.06(b)(ii) shall be deemed to have been satisfied upon receipt
by the Registrar of the instructions contained in the Letter of Transmittal
delivered by the Holder of such beneficial interests in the Restricted Global
Notes.  Upon satisfaction of all of the requirements for transfer or
exchange of beneficial interests in Global Notes contained in this Indenture and
the Notes or otherwise applicable under the Securities Act, the Trustee shall
adjust the principal amount of the relevant Global Note(s) pursuant to
Section 2.06(h) hereof.

     

    (iii) Transfer of Beneficial
Interests to Another Restricted Global Note.  A beneficial
interest in any Restricted Global Note may be transferred to a Person who takes
delivery thereof in the form of a beneficial interest in another Restricted
Global Note if the transfer complies with the requirements of
Section 2.06(b)(ii) hereof and the Registrar receives the
following:

     

    (A) if the
transferee will take delivery in the form of a beneficial interest in a 144A
Global Note, then the transferor must deliver a certificate in the form of Exhibit B
hereto, including the certifications in item (1) thereof; or

     

    (B) if the
transferee will take delivery in the form of a beneficial interest in a
Regulation S Global Note, then the transferor must deliver a certificate in
the form of Exhibit B
hereto, including the certifications in item (2) thereof.

     

    (iv) Transfer and Exchange of
Beneficial Interests in a Restricted Global Note for Beneficial Interests in an
Unrestricted Global Note.  A beneficial interest in any
Restricted Global Note may be exchanged by any holder thereof for a beneficial
interest in an Unrestricted Global Note or transferred to a Person who takes
delivery thereof in the form of a beneficial interest in an Unrestricted Global
Note if the exchange or transfer complies with the requirements of
Section 2.06(b)(ii) hereof and:

     

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

     

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

     

    (C) such
transfer is effected by a broker-dealer pursuant to the Exchange Registration
Statement in accordance with the Registration Rights Agreement; or

     

    (D) the
Registrar receives the following:

     

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

     

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

     

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

     

    If any
such transfer is effected pursuant to subsection (B) or (D) above at a
time when an Unrestricted Global Note has not yet been issued, the Issuer shall
issue and, upon receipt of a Issuer Authentication Order in accordance with
Section 2.02 hereof, the Trustee shall authenticate one or more
Unrestricted Global Notes in an aggregate principal amount equal to the
aggregate principal amount of beneficial interests transferred pursuant to
subparagraph (B) or (D) above.

     

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

     

    (c) Transfer or Exchange of
Beneficial Interests for Definitive Notes.

     

    (i) Beneficial Interests in
Restricted Global Notes to Restricted Definitive Notes.  If any
holder of a beneficial interest in a Restricted Global Note proposes to exchange
such beneficial interest for a Restricted Definitive Note or to transfer such
beneficial interest to a Person who takes delivery thereof in the form of a
Restricted Definitive Note, then, upon the occurrence of any of the events in
paragraph (i) or (ii) of Section 2.06(a) hereof and receipt by the
Registrar of the following documentation:

     

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

     

    (B) if such
beneficial interest is being transferred to a QIB in accordance with Rule 144A,
a certificate substantially in the form of Exhibit B
hereto, including the certifications in item (1) thereof;

     

    (C) if such
beneficial interest is being transferred to a Non-U.S. Person in an offshore
transaction in accordance with Rule 903 or Rule 904, a certificate substantially
in the form of Exhibit B
hereto, including the certifications in item (2) thereof;

     

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

     

    (E) if such
beneficial interest is being transferred to the Issuer or any of its Restricted
Subsidiaries, a certificate substantially in the form of Exhibit B
hereto, including the certifications in item (3)(b) thereof; or

     

    (F) if such
beneficial interest is being transferred pursuant to an effective registration
statement under the Securities Act, a certificate substantially in the form of
Exhibit B
hereto, including the certifications in item (3)(c) thereof;

     

    the
Trustee shall cause the aggregate principal amount of the applicable Global Note
to be reduced accordingly pursuant to Section 2.06(h) hereof, and the
Issuer shall execute and the Trustee shall authenticate and mail to the Person
designated in the instructions a Definitive Note in the applicable principal
amount.  Any Definitive Note issued in exchange for a beneficial
interest in a Restricted Global Note pursuant to this Section 2.06(c)(i)
shall be registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest shall instruct the
Registrar through instructions from the Depositary and the Participant or
Indirect Participant.  The Trustee shall mail such Definitive Notes to
the Persons in whose names such Notes are so registered.  Any
Definitive Note issued in exchange for a beneficial interest in a Restricted
Global Note pursuant to this Section 2.06(c)(i) shall bear the Private
Placement Legend and shall be subject to all restrictions on transfer contained
therein.

     

    (ii) [Intentionally
Omitted]

     

    (iii) Beneficial Interests in
Restricted Global Notes to Unrestricted Definitive Notes.  A
holder of a beneficial interest in a Restricted Global Note may exchange such
beneficial interest for an Unrestricted Definitive Note or may transfer such
beneficial interest to a Person who takes delivery thereof in the form of an
Unrestricted Definitive Note only upon the occurrence of any of the events in
subsection (i) or (ii) of Section 2.06(a) hereof and if:

     

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

     

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

     

    (C) such
transfer is effected by a broker-dealer pursuant to the Exchange Registration
Statement in accordance with the Registration Rights Agreement; or

     

    (D) the
Registrar receives the following:

     

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

     

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

     

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

     

    (iv) Beneficial Interests in
Unrestricted Global Notes to Unrestricted Definitive Notes.  If
any holder of a beneficial interest in an Unrestricted Global Note proposes to
exchange such beneficial interest for a Definitive Note or to transfer such
beneficial interest to a Person who takes delivery thereof in the form of a
Definitive Note, then, upon the occurrence of any of the events in
subsection (i) or (ii) of Section 2.06(a) hereof and satisfaction of
the conditions set forth in Section 2.06(b)(ii) hereof, the Trustee shall
cause the aggregate principal amount of the applicable Global Note to be reduced
accordingly pursuant to Section 2.06(h) hereof, and the Issuer shall
execute and the Trustee shall authenticate and mail to the Person designated in
the instructions a Definitive Note in the applicable principal
amount.  Any Definitive Note issued in exchange for a beneficial
interest pursuant to this Section 2.06(c)(iv) shall be registered in such
name or names and in such authorized denomination or denominations as the holder
of such beneficial interest shall instruct the Registrar through instructions
from or through the Depositary and the Participant or Indirect
Participant.  The Trustee shall mail such Definitive Notes to the
Persons in whose names such Notes are so registered.  Any Definitive
Note issued in exchange for a beneficial interest pursuant to this
Section 2.06(c)(iv) shall not bear the Private Placement
Legend.

     

    (d) Transfer and Exchange of
Definitive Notes for Beneficial Interests.

     

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

     

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

     

    (B) if such
Restricted Definitive Note is being transferred to a QIB in accordance with Rule
144A, a certificate substantially in the form of Exhibit B
hereto, including the certifications in item (1) thereof;

     

    (C) if such
Restricted Definitive Note is being transferred to a Non-U.S. Person in an
offshore transaction in accordance with Rule 903 or Rule 904, a certificate
substantially in the form of Exhibit B
hereto, including the certifications in item (2) thereof;

     

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

     

    (E) if such
Restricted Definitive Note is being transferred to the Issuer or any of its
Restricted Subsidiaries, a certificate substantially in the form of Exhibit B
hereto, including the certifications in item (3)(b) thereof; or

     

    (F) if such
Restricted Definitive Note is being transferred pursuant to an effective
registration statement under the Securities Act, a certificate substantially in
the form of Exhibit
B hereto, including the certifications in item (3)(c)
thereof;

     

    the
Trustee shall cancel the Restricted Definitive Note, increase or cause to be
increased the aggregate principal amount of, in the case of
clause (A) above, the applicable Restricted Global Note, in the case
of clause (B) above, the applicable 144A Global Note, and in the case
of clause (C) above, the applicable Regulation S Global
Note.

     

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

     

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

     

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

     

    (C) such
transfer is effected by a broker-dealer pursuant to the Exchange Registration
Statement in accordance with the Registration Rights Agreement; or

     

    (D) the
Registrar receives the following:

     

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

     

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

     

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

     

    Upon
satisfaction of the conditions of any of the subparagraphs in this
Section 2.06(d)(ii), the Trustee shall cancel the Definitive Notes and
increase or cause to be increased the aggregate principal amount of the
Unrestricted Global Note.

     

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

     

    If any
such exchange or transfer from a Definitive Note to a beneficial interest is
effected pursuant to subsection (ii)(B), (ii)(D) or (iii) above at a time
when an Unrestricted Global Note has not yet been issued, the Issuer shall issue
and, upon receipt of a Issuer Authentication Order in accordance with
Section 2.02 hereof, the Trustee shall authenticate one or more
Unrestricted Global Notes in an aggregate principal amount equal to the
principal amount of Definitive Notes so transferred.

     

    (e) Transfer and Exchange of
Definitive Notes for Definitive Notes.  Upon request by a
Holder of Definitive Notes and such Holder’s compliance with the provisions of
this Section 2.06(e), the Registrar shall register the transfer or exchange
of Definitive Notes.  Prior to such registration of transfer or
exchange, the requesting Holder shall present or surrender to the Registrar the
Definitive Notes duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by such Holder or
by its attorney, duly authorized in writing.  In addition, the
requesting Holder shall provide any additional certifications, documents and
information, as applicable, required pursuant to the following provisions of
this Section 2.06(e):

     

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

     

    (A) if the
transfer will be made to a QIB in accordance with Rule 144A, then the transferor
must deliver a certificate in the form of Exhibit B
hereto, including the certifications in item (1) thereof;

     

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

     

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

     

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

     

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

     

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

     

    (C) any such
transfer is effected by a broker-dealer pursuant to the Exchange Registration
Statement in accordance with the Registration Rights Agreement; or

     

    (D) the
Registrar receives the following:

     

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

     

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

     

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

     

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

     

    (f) Exchange
Offer.  Upon the occurrence of the Exchange Offer in accordance
with the Registration Rights Agreement, the Issuer shall issue and, upon receipt
of an Issuer Authentication Order in accordance with Section 2.02 hereof,
the Trustee shall authenticate:

     

    (i) one or
more Unrestricted Global Notes in an aggregate principal amount equal to the
principal amount of the beneficial interests in the Restricted Global Notes
tendered for acceptance, and accepted, in the Exchange Offer by Persons that
certify in the applicable Letters of Transmittal or through an Agent’s Message
through the DTC Automated Tender Offers Program that (A) they are not
broker-dealers, (B) they are not participating in a distribution of the
Exchange Notes and (C) they are not affiliates (as defined in Rule 144) of
the Issuer; and

     

    (ii) Unrestricted
Definitive Notes in an aggregate principal amount equal to the principal amount
of the Restricted Definitive Notes tendered for acceptance, in the Exchange
Offer by Persons that certify in the applicable Letters of Transmittal that
(A) they are not broker-dealers, (B) they are not participating in a
distribution of the Exchange Notes and (C) they are not affiliates (as
defined in Rule 144) of the Issuer.

     

    Concurrently
with the issuance of such Notes, the Trustee shall cause the aggregate principal
amount of the applicable Restricted Global Notes to be reduced accordingly, and
the Issuer shall execute and the Trustee shall authenticate and deliver to the
Persons designated by the Holders of Definitive Notes so accepted Unrestricted
Definitive Notes in the appropriate principal amount.  Any Notes that
remain outstanding after the consummation of an Exchange Offer, and Exchange
Notes issued in connection with an Exchange Offer, shall be treated as a single
class of securities under this Indenture.

     

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

     

    (i) Private Placement
Legend.

     

    (A) Except as
permitted by subparagraph (B) below, each Global Note and each Definitive
Note (and all Notes issued in exchange therefor or substitution therefor) shall
bear the legend in substantially the following form:

     

    “THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED
STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH
BELOW.  BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A)
IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS NOTE IN AN
OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT,
(2) AGREES THAT IT WILL NOT WITHIN [IN THE CASE OF 144A GLOBAL NOTES: ONE YEAR]
[IN THE CASE OF REGULATION S GLOBAL NOTES: 40 DAYS] AFTER THE LATER OF THE
ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY
AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF SUCH
NOTE) RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO THE ISSUER OR ANY
SUBSIDIARY THEREOF, (B) INSIDE THE UNITED STATES TO A QUALIFIED INSTITUTIONAL
BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C) OUTSIDE THE
UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 903 OR RULE 904
UNDER THE SECURITIES ACT, (D) PURSUANT TO THE EXEMPTION FROM REGISTRATION
PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), (E) IN ACCORDANCE
WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
(AND BASED UPON AN OPINION OF COUNSEL IF THE ISSUER SO REQUESTS), OR (F)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND (3)
AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A
NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. AS USED HEREIN, THE TERMS
“OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANING GIVEN
TO THEM BY REGULATION S UNDER THE SECURITIES ACT.”

     

    (B) Notwithstanding
the foregoing, any Global Note or Definitive Note issued pursuant to
subparagraph (b)(iv), (c)(iii), (c)(iv), (d)(ii), (d)(iii), (e)(ii), (e)(iii) or
(f) of this Section 2.06 (and all Notes issued in exchange therefor or
substitution thereof) shall not bear the Private Placement Legend.

     

    (ii) Global Note
Legend.  Each Global Note shall bear a legend in substantially
the following form:

     

    “THIS
GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING
THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS
HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT
THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT
TO SECTION 2.06(c) OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED
IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE,
(III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT
TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE
TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE
ISSUER.

     

    UNLESS
AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS
NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF
THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY.  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW
YORK) (“DTC”) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.”

     

    (h) Cancellation and/or
Adjustment of Global Notes.  At such time as all beneficial
interests in a particular Global Note have been exchanged for Definitive Notes
or a particular Global Note has been redeemed, repurchased or canceled in whole
and not in part, each such Global Note shall be returned to or retained and
canceled by the Trustee in accordance with Section 2.11
hereof.  At any time prior to such cancellation, if any beneficial
interest in a Global Note is exchanged for or transferred to a Person who shall
take delivery thereof in the form of a beneficial interest in another Global
Note or for Definitive Notes, the principal amount of Notes represented by such
Global Note shall be reduced accordingly and an endorsement shall be made on
such Global Note by the Trustee or by the Depositary at the direction of the
Trustee to reflect such reduction; and if the beneficial interest is being
exchanged for or transferred to a Person who shall take delivery thereof in the
form of a beneficial interest in another Global Note, such other Global Note
shall be increased accordingly and an endorsement shall be made on such Global
Note by the Trustee or by the Depositary at the direction of the Trustee to
reflect such increase.

     

    (i) General Provisions Relating
to Transfers and Exchanges.

     

    (i) To permit
registrations of transfers and exchanges, the Issuer shall execute and the
Trustee shall authenticate Global Notes and Definitive Notes upon receipt of a
Issuer Authentication Order in accordance with Section 2.02 hereof or at
the Registrar’s request.

     

    (ii) No
service charge shall be made to a holder of a beneficial interest in a Global
Note or to a Holder of a Definitive Note for any registration of transfer or
exchange, but the Issuer may require payment of a sum sufficient to cover any
transfer tax or similar governmental charge payable in connection therewith
(other than any such transfer taxes or similar governmental charge payable upon
exchange or transfer pursuant to Sections 2.07, 2.10, 3.06, 3.09, 4.10, 4.14 and
9.05 hereof).

     

    (iii) Neither
the Registrar nor the Issuer shall be required to register the transfer of or
exchange any Note selected for redemption in whole or in part, except the
unredeemed portion of any Note being redeemed in part.

     

    (iv) All
Global Notes and Definitive Notes issued upon any registration of transfer or
exchange of Global Notes or Definitive Notes shall be the valid obligations of
the Issuer, evidencing the same debt, and entitled to the same benefits under
this Indenture, as the Global Notes or Definitive Notes surrendered upon such
registration of transfer or exchange.

     

    (v) The
Issuer shall not be required (A) to issue, to register the transfer of or
to exchange any Notes during a period beginning at the opening of business 15
days before the day of any selection of Notes for redemption under
Section 3.02 hereof and ending at the close of business on the day of
selection; (B) to register the transfer of or to exchange any Note so
selected for redemption in whole or in part, except the unredeemed portion of
any Note being redeemed in part; or (C) to register the transfer of or to
exchange a Note between a Record Date and the next succeeding Interest Payment
Date.

     

    (vi) Prior to
due presentment for the registration of a transfer of any Note, the Trustee, any
Agent and the Issuer may deem and treat the Person in whose name any Note is
registered as the absolute owner of such Note for the purpose of receiving
payment of principal of (and premium, if any) and interest (including Additional
Interest, if any) on such Notes and for all other purposes, and none of the
Trustee, any Agent or the Issuer shall be affected by notice to the
contrary.

     

    (vii) Upon
surrender for registration of transfer of any Note at the office or agency of
the Issuer designated pursuant to Section 4.02 hereof, the Issuer shall
execute, and the Trustee shall authenticate and mail, in the name of the
designated transferee or transferees, one or more replacement Notes of any
authorized denomination or denominations of a like aggregate principal
amount.

     

    (viii) At the
option of the Holder, Notes may be exchanged for other Notes of any authorized
denomination or denominations of a like aggregate principal amount upon
surrender of the Notes to be exchanged at such office or
agency.  Whenever any Global Notes or Definitive Notes are so
surrendered for exchange, the Issuer shall execute, and the Trustee shall
authenticate and mail, the replacement Global Notes and Definitive Notes which
the Holder making the exchange is entitled to in accordance with the provisions
of Section 2.02 hereof.

     

    (ix) All
certifications, certificates and Opinions of Counsel required to be submitted to
the Registrar pursuant to this Section 2.06 to effect a registration of
transfer or exchange may be submitted by facsimile.

     

    Section
2.07 Replacement
Notes

     

    
      	
              .

            

    

     

    If any
mutilated Note is surrendered to the Trustee, the Registrar or the Issuer and
the Trustee receives evidence to its satisfaction of the ownership and
destruction, loss or theft of any Note, the Issuer shall issue and the Trustee,
upon receipt of a Issuer Authentication Order, shall authenticate a replacement
Note if the Trustee’s requirements are met.  If required by the
Trustee or the Issuer, an indemnity bond must be supplied by the Holder that is
sufficient in the judgment of the Trustee and the Issuer to protect the Issuer,
the Trustee, any Agent and any authenticating agent from any loss that any of
them may suffer if a Note is replaced.  The Issuer and the Trustee may
charge for their expenses in replacing a Note.

     

    Every
replacement Note is a contractual obligation of the Issuer and shall be entitled
to all of the benefits of this Indenture equally and proportionately with all
other Notes duly issued hereunder.

     

    Section
2.08 Outstanding
Notes

     

    
      	
              .

            

    

     

    The Notes
outstanding at any time are all the Notes authenticated by the Trustee except
for those canceled by it, those delivered to it for cancellation, those
reductions in the interest in a Global Note effected by the Trustee in
accordance with the provisions hereof, and those described in this
Section 2.08 as not outstanding.  Except as set forth in
Section 2.09 hereof, a Note does not cease to be outstanding because the
Issuer or an Affiliate of the Issuer holds the Note.

     

    If a Note
is replaced pursuant to Section 2.07 hereof, it ceases to be outstanding
unless the Trustee receives proof satisfactory to it that the replaced Note is
held by a protected purchaser.

     

    If the
principal amount of any Note is considered paid under Section 4.01 hereof,
it ceases to be outstanding and interest on it ceases to accrue.

     

    If the
Paying Agent (other than the Issuer, a Subsidiary or an Affiliate of any
thereof) holds, on a Redemption Date or maturity date, money sufficient to pay
Notes payable on that date, then on and after that date such Notes shall be
deemed to be no longer outstanding and shall cease to accrue
interest.

     

    Section
2.09 Treasury
Notes

     

    
      	
              .

            

    

     

    In
determining whether the Holders of the required principal amount of Notes have
concurred in any direction, waiver or consent, any Notes owned by the Issuer or
any Affiliate of the Issuer, shall be considered as though not outstanding,
except that for the purposes of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only Notes that a
Responsible Officer of the Trustee knows are so owned, shall be so
disregarded.  Notes so owned which have been pledged in good faith
shall not be disregarded if the pledgee establishes to the satisfaction of the
Trustee the pledgee’s right to deliver any such direction, waiver or consent
with respect to the Notes and that the pledgee is not the Issuer or any obligor
upon the Notes or any Affiliate of the Issuer or of such other
obligor.

     

    Section
2.10 Temporary
Notes

     

    
      	
              .

            

    

     

    Until
certificates representing Notes are ready for delivery, the Issuer may prepare
and the Trustee, upon receipt of a Issuer Authentication Order, shall
authenticate temporary Notes.  Temporary Notes shall be substantially
in the form of certificated Notes but may have variations that the Issuer
considers appropriate for temporary Notes and as shall be reasonably acceptable
to the Trustee.  Without unreasonable delay, the Issuer shall prepare
and the Trustee shall authenticate definitive Notes in exchange for temporary
Notes.

     

    Holders
and beneficial holders, as the case may be, of temporary Notes shall be entitled
to all of the benefits accorded to Holders, or beneficial holders, respectively,
of Notes under this Indenture.

     

    Section
2.11 Cancellation

     

    
      	
              .

            

    

     

    The
Issuer at any time may deliver Notes to the Trustee for
cancellation.  The Registrar and Paying Agent shall forward to the
Trustee any Notes surrendered to them for registration of transfer, exchange or
payment.  The Trustee or, at the direction of the Trustee, the
Registrar or the Paying Agent and no one else shall cancel all Notes surrendered
for registration of transfer, exchange, payment, replacement or cancellation and
shall destroy cancelled Notes (subject to the record retention requirement of
the Exchange Act).  Certification of the destruction of all cancelled
Notes shall be delivered to the Issuer upon the Issuer’s written
request.  The Issuer may not issue new Notes to replace Notes that it
has paid or that have been delivered to the Trustee for
cancellation.

     

    Section
2.12 Defaulted Cash
Interest

     

    
      	
              .

            

    

     

    If the
Issuer defaults in a payment of cash interest on the Notes, it shall pay the
defaulted cash interest in any lawful manner plus, to the extent
lawful, interest payable on the defaulted cash interest, to the Persons who are
Holders on a subsequent special record date, in each case at the rate provided
in the Notes and in Section 4.01 hereof.  The Issuer shall notify
the Trustee in writing of the amount of defaulted cash interest proposed to be
paid on each Note and the date of the proposed payment and at the same time the
Issuer shall deposit with the Trustee an amount of money equal to the aggregate
amount proposed to be paid in respect of such defaulted cash interest or shall
make arrangements satisfactory to the Trustee for such deposit prior to the date
of the proposed payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to such defaulted cash interest as provided in
this Section 2.12.  The Trustee shall fix or cause to be fixed
each such special record date and payment date; provided that no such
special record date shall be less than 10 days prior to the related payment date
for such defaulted cash interest.  The Trustee shall promptly notify
the Issuer of such special record date.  At least 15 days before the
special record date, the Issuer (or, upon the written request of the Issuer, the
Trustee in the name and at the expense of the Issuer) shall mail or cause to be
mailed, first-class postage prepaid, to each Holder a notice at his or her
address as it appears in the Note Register that states the special record date,
the related payment date and the amount of such interest to be
paid.

     

    Subject
to the foregoing provisions of this Section 2.12 and for greater certainty,
each Note delivered under this Indenture upon registration of transfer of or in
exchange for or in lieu of any other Note shall carry the rights to interest
accrued and unpaid, and to accrue, which were carried by such other
Note.

     

    Section
2.13 CUSIP and ISIN
Numbers

     

    
      	
              .

            

    

     

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

     

    ARTICLE
3

     

    

     

    REDEMPTION

     

    Section
3.01 Notices to
Trustee

     

    
      	
              .

            

    

     

    If the
Issuer elects to redeem the Notes pursuant to Section 3.07 hereof, it shall
furnish to the Trustee, at least two Business Days before notice of redemption
is required to be mailed or caused to be mailed to Holders pursuant to
Section 3.03 hereof but not more than 60 days before a Redemption Date, an
Officer’s Certificate setting forth (i) the paragraph or subparagraph of such
Notes and/or Section of this Indenture pursuant to which the redemption
shall occur, (ii) the Redemption Date, (iii) the principal amount of Notes to be
redeemed and (iv) the redemption price.

     

    Section
3.02 Selection of Notes to Be
Redeemed or Purchased

     

    
      	
              .

            

    

     

    (a) If less
than all of the Notes are to be redeemed or purchased in an offer to purchase at
any time, the Trustee shall select the Notes of such series to be redeemed or
purchased (a) if the Notes are listed on any national securities exchange, in
compliance with the requirements of the principal national securities exchange
on which the Notes are listed, (b) on a pro rata basis to the extent practicable
or (c) by lot or such similar method in accordance with the procedures of
DTC.

     

    (b) In the
event of partial redemption or purchase by lot, the particular Notes to be
redeemed or purchased shall be selected, unless otherwise provided herein, not
less than 30 nor more than 60 days prior to the Redemption Date by the Trustee
from the outstanding Notes not previously called for redemption or
purchase.

     

    (c) The
Trustee shall promptly notify the Issuer in writing of the Notes selected for
redemption or purchase and, in the case of any Note selected for partial
redemption or purchase, the principal amount thereof to be redeemed or
purchased.  Notes and portions of Notes selected shall be in amounts
of $2,000 or whole multiples of $1,000 in excess thereof; no Notes of $2,000 or
less can be redeemed in part, except that if all of the Notes of a Holder are to
be redeemed or purchased, the entire outstanding amount of Notes held by such
Holder, even if not $2,000 or a multiple of $1,000 in excess thereof, shall be
redeemed or purchased.  Except as provided in the preceding sentence,
provisions of this Indenture that apply to Notes called for redemption or
purchase also apply to portions of Notes called for redemption or
purchase.

     

    Section
3.03 Notice of
Redemption

     

    
      	
              .

            

    

     

    Subject
to Section 3.09 hereof, notices of redemption shall be mailed by
first-class mail, postage prepaid, at least 30 days but not more than 60 days
before the Redemption Date to each Holder of Notes to be redeemed at such
Holder’s registered address or otherwise in accordance with the procedures of
DTC, except that notices of redemption may be mailed more than 60 days prior to
a Redemption Date if the notice is issued in connection with Article 8 or
Article 12 hereof.  Except as set forth in Sections 3.04, 3.07(c)
and 3.07(d) hereof, notices of redemption may not be conditional.

     

    The
notice shall identify the Notes to be redeemed and shall state:

     

    (a) the
Redemption Date;

     

    (b) the
redemption price;

     

    (c) if any
Note is to be redeemed in part only, the portion of the principal amount of that
Note that is to be redeemed and that, after the Redemption Date upon surrender
of such Note, a new Note or Notes in principal amount equal to the unredeemed
portion of the original Note representing the same indebtedness to the extent
not redeemed shall be issued in the name of the Holder of the Notes upon
cancellation of the original Note;

     

    (d) the name
and address of the Paying Agent;

     

    (e) that
Notes called for redemption must be surrendered to the Paying Agent to collect
the redemption price;

     

    (f) that,
unless the Issuer defaults in making such redemption payment, interest on Notes
called for redemption ceases to accrue on and after the Redemption
Date;

     

    (g) the
paragraph or subparagraph of the Notes and/or Section of this Indenture
pursuant to which the Notes called for redemption are being
redeemed;

     

    (h) that no
representation is made as to the correctness or accuracy of the CUSIP and/or
ISIN number, if any, listed in such notice or printed on the Notes;
and

     

    (i) if in
connection with a redemption pursuant to Section 3.07(c) or Section 3.07(d)
hereof, any condition to such redemption.

     

    At the
Issuer’s request, the Trustee shall give the notice of redemption in the
Issuer’s name and at its expense; provided that the
Issuer shall have delivered to the Trustee, at least two Business Days before
notice of redemption is required to be mailed or caused to be mailed to Holders
pursuant to this Section 3.03 (unless a shorter notice shall be agreed to
by the Trustee), an Officer’s Certificate requesting that the Trustee give such
notice and setting forth the information to be stated in such notice as provided
in the preceding paragraph.

     

    Section
3.04 Effect of Notice of
Redemption

     

    
      	
              .

            

    

     

    Once
notice of redemption is mailed in accordance with Section 3.03 hereof,
Notes called for redemption become irrevocably due and payable on the Redemption
Date at the redemption price (except as provided for in Sections 3.07(c)
and 3.07(d) hereof).  The notice, if mailed in a manner herein
provided, shall be conclusively presumed to have been given, whether or not the
Holder receives such notice.  In any case, failure to give such notice
by mail or any defect in the notice to the Holder of any Note designated for
redemption in whole or in part shall not affect the validity of the proceedings
for the redemption of any other Note.  Subject to Section 3.05
hereof, on and after the Redemption Date, interest ceases to accrue on Notes or
portions of Notes called for redemption.

     

    Section
3.05 Deposit of Redemption or
Purchase Price

     

    
      	
              .

            

    

     

    Prior to
10:00 a.m. (New York City time) on the redemption or purchase date, the Issuer
shall deposit with the Trustee or with the Paying Agent money sufficient to pay
the redemption or purchase price of and accrued and unpaid interest (including
Additional Interest, if any) on all Notes to be redeemed or purchased on that
date.  The Trustee or the Paying Agent shall promptly return to the
Issuer any money deposited with the Trustee or the Paying Agent by the Issuer in
excess of the amounts necessary to pay the redemption price of, and accrued and
unpaid interest (including Additional Interest, if any) on, all Notes to be
redeemed or purchased.

     

    If the
Issuer complies with the provisions of the preceding paragraph, on and after the
redemption or purchase date, interest shall cease to accrue on the Notes or the
portions of Notes called for redemption or purchase.  If a Note is
redeemed or purchased on or after a Record Date but on or prior to the related
Interest Payment Date, then any accrued and unpaid interest to the redemption or
purchase date shall be paid to the Person in whose name such Note was registered
at the close of business on such Record Date.  If any Note called for
redemption or purchase shall not be so paid upon surrender for redemption or
purchase because of the failure of the Issuer to comply with the preceding
paragraph, interest shall be paid on the unpaid principal, from the redemption
or purchase date until such principal is paid, and to the extent lawful on any
interest accrued to the redemption or purchase date not paid on such unpaid
principal, in each case at the rate provided in the Notes and in
Section 4.01 hereof.

     

    Section
3.06 Notes Redeemed or Purchased
in Part

     

    
      	
              .

            

    

     

    Upon
surrender of a Note that is redeemed or purchased in part, the Issuer shall
issue and, upon receipt of an Issuer Authentication Order, the Trustee shall
authenticate for the Holder at the expense of the Issuer a new Note equal in
principal amount to the unredeemed or unpurchased portion of the Note
surrendered representing the same indebtedness to the extent not redeemed or
purchased; provided that each
new Note shall be in a principal amount of $2,000 or an integral multiple of
$1,000 in excess thereof.  It is understood that, notwithstanding
anything in this Indenture to the contrary, only an Issuer Authentication Order
and not an Opinion of Counsel or Officer’s Certificate is required for the
Trustee to authenticate such new Note.

     

    Section
3.07 Optional
Redemption

     

    
      	
              .

            

    

     

    (a) Notes Make Whole
Redemption.  At any time prior to January 15, 2015, the Issuer
may redeem all or a part of the Notes at a redemption price equal to 100% of the
principal amount of the Notes redeemed plus the Applicable
Premium as of, and accrued and unpaid interest and Additional Interest, if any,
to, the date of redemption (the “Redemption Date”),
subject to the right of Holders of Notes of record on the relevant Record Date
to receive interest due on the relevant Interest Payment Date.

     

    (b) Notes Equity
Redemption.  Prior to January 15, 2013, the Issuer may, at its
option, on one or more occasions, redeem up to 35% of the aggregate principal
amount of Notes at a redemption price equal to 110.000% of the aggregate
principal amount thereof, plus accrued and
unpaid interest and Additional Interest, if any, to the Redemption Date, subject
to the right of Holders of Notes of record on the relevant Record Date to
receive interest due on the relevant Interest Payment Date, with the net cash
proceeds of one or more Equity Offerings; provided that at
least 50% of the sum of the original aggregate principal amount of Initial Notes
and any Additional Notes issued under this Indenture after the Issue Date
remains outstanding immediately after the occurrence of each such redemption;
and provided,
further that
each such redemption occurs within 90 days of the date of closing of each such
Equity Offering.  Notice of any redemption upon any Equity Offerings
may be given prior to the redemption thereof, and any such redemption or notice
may, at the Issuer’s option and discretion, be subject to one or more conditions
precedent, including, but not limited to, completion of the related Equity
Offering.

     

    (c) Except
pursuant to clause (a) or (b) of this Section 3.07, the Notes shall
not be redeemable at the Issuer’s option prior to January 15, 2015.

     

    (d) Notes Optional
Redemption.  From and after January 15, 2015 the Issuer may
redeem Notes, in whole or in part at the redemption prices (expressed as
percentages of principal amount of the Notes to be redeemed) set forth below,
plus accrued
and unpaid interest and Additional Interest, if any, to the Redemption Date,
subject to the right of Holders of Notes of record on the relevant Record Date
to receive interest due on the relevant Interest Payment Date, if redeemed
during the twelve-month period beginning on January 15 of each of the years
indicated below:

     

    
      	
              Year

            	
              Percentage

            
	
              2015

            	
              105.000%

            
	
              2016

            	
              103.333%

            
	
              2017

            	
              101.667%

            
	
              2018
      and thereafter

            	
              100.000%

            

    

    

     

    (e) Any
redemption pursuant to this Section 3.07 shall be made pursuant to the
provisions of Sections 3.01 through 3.06 hereof.

     

    Section
3.08 Mandatory
Redemption

     

    
      	
              .

            

    

     

    The
Issuer shall not be required to make any mandatory redemption or sinking fund
payments with respect to the Notes.

     

    Section
3.09 Offers to Repurchase by
Application of Excess Proceeds

     

    
      	
              .

            

    

     

    (a) In the
event that, pursuant to Section 4.10 hereof, the Issuer shall be required
to commence an Asset Sale Offer or a Collateral Asset Sale Offer, it shall
follow the procedures specified below.

     

    (b) The Asset
Sale Offer or the Collateral Asset Sale Offer shall remain open for a period of
20 Business Days following its commencement and no longer, except to the extent
that a longer period is required by applicable law (the “Offer
Period”).  No later than five Business Days after the
termination of the Offer Period (the “Purchase Date”), the
Issuer shall apply all Excess Proceeds or Collateral Excess Proceeds, as
applicable (the “Offer
Amount”), to the purchase of Notes (subject to the limitations set forth
in clause (1) of Section 4.10(b) hereof with respect to Excess Proceeds or
in clause (1) of Section 4.10(f) hereof with respect to Collateral Excess
Proceeds) and, (A) with respect to Excess Proceeds, if required or permitted by
the terms thereof, any Senior Indebtedness (on a pro rata basis, if
applicable), (B) with respect to Collateral Excess Proceeds, if required or
permitted by the terms thereof, any Parity Lien Debt (on a pro rata basis, if
applicable), or, if less than the Offer Amount has been tendered, all Notes and
Senior Indebtedness tendered in response to the Asset Sale Offer (subject to the
limitations set forth in clause (1) of Section 4.10(b) hereof), or all
Notes and Parity Lien Debt tendered in response to the Collateral Asset Sale
Offer (subject to the limitations set forth in clause (1) of Section 4.10(f)
hereof) as applicable. Payment for any Notes so purchased shall be made in the
same manner as interest payments are made.

     

    (c) If the
Purchase Date is on or after a Record Date and on or before the related Interest
Payment Date, any accrued and unpaid interest and Additional Interest, if any,
up to but excluding the Purchase Date, shall be paid to the Person in whose name
a Note is registered at the close of business on such Record Date, and no
additional interest shall be payable to Holders who tender Notes pursuant to the
Asset Sale Offer or the Collateral Asset Sale Offer, as applicable.

     

    (d) Upon the
commencement of an Asset Sale Offer or a Collateral Asset Sale Offer, the Issuer
shall send, by first-class mail, a notice to each of the Holders, with a copy to
the Trustee.  The notice shall contain all instructions and materials
necessary to enable such Holders to tender Notes pursuant to such Asset Sale
Offer or Collateral Asset Sale Offer.  Any Asset Sale Offer or
Collateral Asset Sale Offer shall be made to all Holders and, if required or
permitted, to (A) holders of Senior Indebtedness in the case of an Asset Sale
Offer, or (B) holders of Parity Lien Debt in the case of a Collateral Asset Sale
Offer.  The notice, which shall govern the terms of the Asset Sale
Offer or the Collateral Asset Sale Offer, shall state:

     

    (i) that the
Asset Sale Offer or Collateral Asset Sale Offer, as applicable, is being made
pursuant to this Section 3.09 and Section 4.10 hereof and the length
of time the Asset Sale Offer or the Collateral Asset Sale Offer shall remain
open;

     

    (ii) the Offer
Amount, the purchase price and the Purchase Date;

     

    (iii) that any
Note not tendered or accepted for payment shall continue to accrue
interest;

     

    (iv) that,
unless the Issuer defaults in making such payment, any Note accepted for payment
pursuant to the Asset Sale Offer or the Collateral Asset Sale Offer, as
applicable, shall cease to accrue interest on and after the Purchase
Date;

     

    (v) that
Holders electing to have a Note purchased pursuant to an Asset Sale Offer or a
Collateral Asset Sale Offer, as applicable, may elect to have Notes purchased in
the minimum amount of $2,000 or an integral multiple of $1,000 in excess
thereof;

     

    (vi) that
Holders electing to have a Note purchased pursuant to any Asset Sale Offer or
Collateral Asset Sale Offer shall be required to surrender the Note, with the
form entitled “Option of Holder to Elect Purchase” attached to the Note
completed, or transfer by book-entry transfer, to the Issuer, the Depositary, if
appointed by the Issuer, or a Paying Agent at the address specified in the
notice at least three days before the Purchase Date;

     

    (vii) that
Holders shall be entitled to withdraw their election if the Issuer, the
Depositary or the Paying Agent, as the case may be, receives, not later than the
expiration of the Offer Period, a telegram, facsimile transmission or letter
setting forth the name of the Holder, the principal amount of the Note the
Holder delivered for purchase and a statement that such Holder is withdrawing
his election to have such Note purchased;

     

    (viii) that, (A)
in the case of an Asset Sale Offer, if the aggregate principal amount of Notes
and Senior Indebtedness surrendered by the holders thereof exceeds the Offer
Amount, or (B) in the case of a Collateral Asset Sale Offer, if the aggregate
principal amount of Notes and Parity Lien Debt surrendered by the holders
thereof exceeds the Offer Amount, the Trustee shall select the Notes and such
Senior Indebtedness, or the Notes and such Parity Lien Debt, as applicable, to
be purchased on a pro rata basis (subject
to the limitations set forth in clause (1) of Section 4.10(b) hereof in the
case of an Asset Sale Offer or in clause (1) of Section 4.10(f) hereof in the
case of a Collateral Asset Sale Offer) based on the accreted value or principal
amount of the Notes, or such Senior Indebtedness or Parity Lien Debt, as
applicable, tendered (with such adjustments as may be deemed appropriate by the
Trustee so that only Notes in denominations of $2,000, or an integral multiple
of $1,000 in excess thereof, shall be purchased); and

     

    (ix) that
Holders whose Notes were purchased only in part shall be issued new Notes equal
in principal amount to the unpurchased portion of the Notes surrendered (or
transferred by book-entry transfer) representing the same indebtedness to the
extent not repurchased.

     

    (e) On or
before the Purchase Date, the Issuer shall, to the extent lawful, (1) accept for
payment, on a pro rata basis to the
extent necessary and subject to clause (1) of Section 4.10(b) hereof in the
case of an Asset Sale Offer or clause (1) of Section 4.10(f) hereof in the case
of a Collateral Asset Sale Offer, the Offer Amount of Notes or portions thereof
validly tendered pursuant to the Asset Sale Offer or the Collateral Asset Sale
Offer, as applicable, or if less than the Offer Amount has been tendered, all
Notes tendered and (2) deliver or cause to be delivered to the Trustee the Notes
properly accepted together with an Officer’s Certificate stating the aggregate
principal amount of Notes or portions thereof so tendered.

     

    (f) The
Issuer, the Depositary or the Paying Agent, as the case may be, shall promptly
mail or deliver to each tendering Holder an amount equal to the purchase price
of the Notes properly tendered by such Holder and accepted by the Issuer for
purchase, and the Issuer shall promptly issue a new Note, and the Trustee, upon
receipt of a Issuer Authentication Order, shall authenticate and mail or deliver
(or cause to be transferred by book-entry) such new Note to such Holder (it
being understood that, notwithstanding anything in this Indenture to the
contrary, no Opinion of Counsel or Officer’s Certificate is required for the
Trustee to authenticate and mail or deliver such new Note) in a principal amount
equal to any unpurchased portion of the Note surrendered representing the same
indebtedness to the extent not repurchased; provided that each
such new Note shall be in a principal amount of $2,000 or an integral multiple
of $1,000 in excess thereof.  Any Note not so accepted shall be
promptly mailed or delivered by the Issuer to the Holder thereof.  The
Issuer shall publicly announce the results of the Asset Sale Offer on or as soon
as practicable after the Purchase Date.

     

    Other
than as specifically provided in this Section 3.09 or Section 4.10
hereof, any purchase pursuant to this Section 3.09 shall be made pursuant
to the applicable provisions of Sections 3.01 through 3.06 hereof.

     

    ARTICLE
4

     

    

     

    COVENANTS

     

    Section
4.01 Payment of
Notes

     

    
      	
              .

            

    

     

    The
Issuer shall pay or cause to be paid the principal, premium, if any, and
interest and Additional Interest, if any, on the Notes on the dates and in the
manner provided in the Notes.  Principal, premium, if any, and
interest and Additional Interest, if any, shall be considered paid on the date
due if the Paying Agent, if other than the Issuer or a Subsidiary, holds as of
noon Eastern Time on the due date money deposited by the Issuer in immediately
available funds and designated for and sufficient to pay all principal, premium,
if any, and interest then due.

     

    The
Issuer shall pay all Additional Interest, if any, in the same manner on the
dates and in the amounts set forth in the Registration Rights
Agreement.  The Issuer shall pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue principal at the
rate equal to the then applicable interest rate on the Notes to the extent
lawful; it shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest and
Additional Interest, if any (without regard to any applicable grace period) at
the same rate to the extent lawful.

     

    Section
4.02 Maintenance of Office or
Agency

     

    
      	
              .

            

    

     

    The
Issuer shall maintain an office or agency (which may be an office of the Trustee
or an affiliate of the Trustee, Registrar or co-registrar) where Notes may be
surrendered for registration of transfer or for exchange and where notices and
demands to or upon the Issuer in respect of the Notes and this Indenture may be
served.  This office shall initially be the Corporate Trust Office of
the Trustee.  The Issuer shall give prompt written notice to the
Trustee of the location, and any change in the location, of such office or
agency.  If at any time the Issuer shall fail to maintain any such
required office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or
served at the Corporate Trust Office of the Trustee.

     

    The
Issuer may also from time to time designate one or more other offices or
agencies where the Notes may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations; provided that no such
designation or rescission shall in any manner relieve the Issuer of its
obligation to maintain an office or agency for such purposes.  This
office shall initially be the Corporate Trust Office of the
Trustee.  The Issuer shall give prompt written notice to the Trustee
of any such designation or rescission and of any change in the location of any
such other office or agency.

     

    The
Issuer hereby designates the Corporate Trust Office of the Trustee as one such
office or agency of the Issuer in accordance with Section 2.03
hereof.

     

    Section
4.03 Reports and Other
Information

     

    
      	
              .

            

    

     

    (a)           Notwithstanding
that the Issuer may not be subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act or otherwise report on an annual
and quarterly basis on forms provided for such annual and quarterly reporting
pursuant to rules and regulations promulgated by the SEC, the Issuer shall file
with the SEC (and make available to the Trustee and Holders of the Notes
(without exhibits), without cost to any Holder, within 15 days after it
files them with the SEC) from and after the Issue Date,

     

    (1)           within
90 days (or any other time period then in effect under the rules and
regulations of the Exchange Act with respect to the filing of a Form 10-K
by a non-accelerated filer) after the end of each fiscal year, annual reports on
Form 10-K, or any successor or comparable form, containing the information
required to be contained therein, or required in such successor or comparable
form;

     

    (2)           within
45 days after the end of each of the first three fiscal quarters of each fiscal
year, reports on Form 10-Q containing all quarterly information that would
be required to be contained in Form 10-Q, or any successor or comparable
form;

     

    (3)           promptly
from time to time after the occurrence of an event required to be therein
reported, such other reports on Form 8-K, or any successor or comparable
form; and

     

    (4)           any
other information, documents and other reports which the Issuer would be
required to file with the SEC if it were subject to Section 13 or 15(d) of
the Exchange Act;

     

    in each
case in a manner that complies in all material respects with the requirements
specified in such form; provided that the
Issuer shall not be so obligated to file such reports with the SEC if the SEC
does not permit such filing, in which event the Issuer shall make available such
information to prospective purchasers of Notes, in addition to providing such
information to the Trustee and the Holders of the Notes, in each case within 15
days after the time the Issuer would be required to file such information with
the SEC if it were subject to Section 13 or 15(d) of the Exchange
Act.  In addition, to the extent not satisfied by the foregoing, the
Issuer shall, for so long as any Notes are outstanding, furnish to Holders and
to securities analysts and prospective investors, upon their request, the
information required to be delivered pursuant to Rule 144A(d)(4) under the
Securities Act.

     

    (b)           In
the event that any direct or indirect parent company of the Issuer becomes a
Guarantor of the Notes, the Issuer may satisfy its obligations under this
Section 4.03 with respect to financial information relating to the Issuer by
furnishing financial information relating to such parent; provided that the
same is accompanied by consolidating information that explains in reasonable
detail the differences between the information relating to such parent, on the
one hand, and the information relating to the Issuer and its Restricted
Subsidiaries on a standalone basis, on the other hand.

     

    (c)           Notwithstanding
anything herein to the contrary, the Issuer shall not be deemed to have failed
to comply with any of its obligations set forth under this Section 4.03 for
purposes of clause (3) of Section 6.01(a) hereof until 60 days after the date
any report is due pursuant to this Section 4.03.

     

    Section
4.04 Compliance
Certificate

     

    
      	
              .

            

    

     

    (a) The
Issuer and each Guarantor (to the extent that such Guarantor is so required
under the Trust Indenture Act) shall deliver to the Trustee, within 90 days
after the end of each fiscal year ending after the Issue Date, a certificate
from the principal executive officer, principal financial officer or principal
accounting officer stating that a review of the activities of the Issuer and its
Restricted Subsidiaries during the preceding fiscal year has been made under the
supervision of the signing Officer with a view to determining whether the Issuer
has kept, observed, performed and fulfilled its obligations under this
Indenture, and further stating, as to such Officer signing such certificate,
that to the best of his or her knowledge the Issuer has kept, observed,
performed and fulfilled each and every condition and covenant contained in this
Indenture and is not in default in the performance or observance of any of the
terms, provisions, covenants and conditions of this Indenture (or, if a Default
shall have occurred, describing all such Defaults of which he or she may have
knowledge and what action the Issuer is taking or proposes to take with respect
thereto).

     

    (b) When any
Default has occurred and is continuing under this Indenture, or if the Trustee
or the holder of any other evidence of Indebtedness of the Issuer or any
Subsidiary gives any notice or takes any other action with respect to a claimed
Default, the Issuer shall promptly (which shall be no more than five Business
Days) deliver to the Trustee by registered or certified mail or by facsimile
transmission an Officer’s Certificate specifying such event and what action the
Issuer proposes to take with respect thereto.

     

    Section
4.05 Taxes

     

    
      	
              .

            

    

     

    The
Issuer shall pay, and shall cause each of its Subsidiaries to pay, prior to
delinquency, all material taxes, assessments, and governmental levies except
such as are contested in good faith and by appropriate negotiations or
proceedings or where the failure to effect such payment is not adverse in any
material respect to the Holders of the Notes.

     

    Section
4.06 Stay, Extension and Usury
Laws

     

    
      	
              .

            

    

     

    The
Issuer and each of the Guarantors covenant (to the extent that they may lawfully
do so) that they shall not at any time insist upon, plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay, extension or
usury law wherever enacted, now or at any time hereafter in force, that may
affect the covenants or the performance of this Indenture; and the Issuer and
each of the Guarantors (to the extent that they may lawfully do so) hereby
expressly waive all benefit or advantage of any such law, and covenant that they
shall not, by resort to any such law, hinder, delay or impede the execution of
any power herein granted to the Trustee, but shall suffer and permit the
execution of every such power as though no such law has been
enacted.

     

    Section
4.07 Limitation on Restricted
Payments

     

    
      	
              .

            

    

     

    (a)           The
Issuer shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly:

     

    (I)           declare
or pay any dividend or make any payment or distribution on account of the
Issuer’s, or any of its Restricted Subsidiaries’ Equity Interests, including any
dividend or distribution payable in connection with any merger or consolidation
other than:

     

    (A)           dividends
or distributions by the Issuer payable solely in Equity Interests (other than
Disqualified Stock) of the Issuer; or

     

    (B)           dividends
or distributions by a Restricted Subsidiary so long as, in the case of any
dividend or distribution payable on or in respect of any class or series of
securities issued by a Restricted Subsidiary other than a Wholly-Owned
Subsidiary, the Issuer or a Restricted Subsidiary receives at least its pro rata share of such
dividend or distribution in accordance with its Equity Interests in such class
or series of securities;

     

    (II)           purchase,
redeem, defease or otherwise acquire or retire for value any Equity Interests of
the Issuer or any direct or indirect parent of the Issuer, including in
connection with any merger or consolidation;

     

    (III)           make
any principal payment on, or redeem, repurchase, defease or otherwise acquire or
retire for value in each case, prior to any scheduled repayment, sinking fund
payment or maturity, any Subordinated Indebtedness, other than:

     

    (A)           Indebtedness
permitted under clauses (7) and (8) of Section 4.09(b) hereof; or

     

    (B)           the
purchase, repurchase or other acquisition of Subordinated Indebtedness purchased
in anticipation of satisfying a sinking fund obligation, principal installment
or final maturity, in each case due within one year of the date of purchase,
repurchase or acquisition; or

     

    (IV)           make
any Restricted Investment

     

    (all such
payments and other actions set forth in clauses (I) through (IV) above (other
than any exception thereto) being collectively referred to as “Restricted
Payments”), unless, at the time of such Restricted Payment:

     

    (1)           no
Default shall have occurred and be continuing or would occur as a consequence
thereof;

     

    (2)           (A)  with
respect to any Restricted Payment by the Issuer or any Restricted Subsidiary of
the Issuer (other than TCEH and its Restricted Subsidiaries), immediately after
giving effect to such transaction on a pro forma basis, the
Restricted Payment Coverage Ratio for the most recently ended four fiscal
quarters for which internal financial statements are available immediately
preceding the date of such Restricted Payment would have been at least 2.00 to
1.00; or (B) with respect to a Restricted Payment by TCEH or any Restricted
Subsidiary of TCEH, immediately after giving effect to such transaction on a
pro forma basis, TCEH
could incur at least $1.00 of additional Indebtedness under the provisions of
clause (ii) of Section 4.09(a) hereof; and

     

    (3)           such
Restricted Payment, together with the aggregate amount of all other Restricted
Payments made by the Issuer and its Restricted Subsidiaries after the Closing
Date (including Restricted Payments permitted by clauses (1), (2) (with
respect to the payment of dividends on Refunding Capital Stock (as defined
below) pursuant to clause (b) thereof only), (6)(c), (9) and (14) of Section
4.07(b) hereof, but excluding all other Restricted Payments permitted by Section
4.07(b) hereof), is less than the sum of (without duplication):

     

    (a)           (A)  with
respect to a Restricted Payment by the Issuer or any Restricted Subsidiary of
the Issuer (other than TCEH and its Restricted Subsidiaries) 50% of the
Consolidated Net Income of the Issuer for the period (taken as one accounting
period) beginning October 11, 2007, to the end of the Issuer’s most recently
ended fiscal quarter for which internal financial statements are available at
the time of such Restricted Payment, or, in the case such Consolidated Net
Income for such period is a deficit, minus 100% of such deficit or (B) with
respect to a Restricted Payment by TCEH or any Restricted Subsidiary of TCEH,
50% of the Consolidated Net Income of TCEH for the period (taken as one
accounting period) beginning October 11, 2007, to the end of TCEH’s most
recently ended fiscal quarter for which internal financial statements are
available at the time of such Restricted Payment, or, in the case such
Consolidated Net Income for such period is a deficit, minus 100% of such
deficit; plus

     

    (b)           100%
of the aggregate net cash proceeds and the fair market value, as determined in
good faith by the Issuer, of marketable securities or other property received by
the Issuer since immediately after the Closing Date (other than net cash
proceeds to the extent such net cash proceeds have been used to incur
Indebtedness, Disqualified Stock or Preferred Stock pursuant to clause (12)(a)
of Section 4.09(b) hereof) from the issue or sale of:

     

                    (i)(A) Equity Interests of the
Issuer, including Treasury Capital Stock (as defined below), but excluding cash
proceeds and the fair market value, as determined in good faith by the Issuer,
of marketable securities or other property received from the sale
of:

     

    (x)           Equity
Interests to members of management, directors or consultants of the Issuer, any
direct or indirect parent company of the Issuer and the Issuer’s Subsidiaries
after the Closing Date to the extent such amounts have been applied to
Restricted Payments made in accordance with clause (4) of Section 4.07(b)
hereof; and

     

    (y)           Designated
Preferred Stock; and

     

    (B)           to
the extent such net cash proceeds are actually contributed to the capital of the
Issuer, Equity Interests of the Issuer’s direct or indirect parent companies
(excluding contributions of the proceeds from the sale of Designated Preferred
Stock of such companies or contributions to the extent such amounts have been
applied to Restricted Payments made in accordance with clause (4) of Section
4.07(b) hereof); or

     

                    (ii)debt securities of the Issuer that
have been converted into or exchanged for such Equity Interests of the
Issuer;

     

    provided, however, that this
clause (b) shall not include the proceeds from (V) Refunding Capital
Stock (as defined below), (W) Equity Interests or debt securities of the
Issuer sold to a Restricted Subsidiary, as the case may be,
(X) Disqualified Stock or debt securities that have been converted into or
exchanged for Disqualified Stock or (Y) Excluded Contributions; plus

     

    (c)           100%
of the aggregate amount of cash and the fair market value, as determined in good
faith by the Issuer, of marketable securities or other property contributed to
the capital of the Issuer following the Closing Date (other than net cash
proceeds to the extent such net cash proceeds (i) have been used to incur
Indebtedness, Disqualified Stock or Preferred Stock pursuant to clause (12)(a)
of Section 4.09(b) hereof, (ii) are contributed by a Restricted Subsidiary
or (iii) constitute Excluded Contributions); plus

     

    (d)           100%
of the aggregate amount received in cash and the fair market value, as
determined in good faith by the Issuer, of marketable securities or other
property received by means of:

     

                    (i)the sale or other disposition (other
than to the Issuer or a Restricted Subsidiary) of Restricted Investments (other
than Restricted Investments in any Oncor Subsidiary or Successor Oncor Business)
made by the Issuer or its Restricted Subsidiaries after the Closing Date and
repurchases and redemptions of such Restricted Investments from the Issuer or
its Restricted Subsidiaries and repayments of loans or advances, and releases of
guarantees, which constitute Restricted Investments by the Issuer or its
Restricted Subsidiaries after the Closing Date; or

     

                    (ii)the sale (other than to the Issuer or
a Restricted Subsidiary) of the stock of an Unrestricted Subsidiary (other than
(x) to the extent the Investment in such Unrestricted Subsidiary was made by the
Issuer or a Restricted Subsidiary pursuant to clause (7) of Section 4.07(b)
hereof, (y) to the extent such Investment constituted a Permitted Investment or
(z) an Investment in the Oncor Subsidiaries or any Successor Oncor Business) or
a distribution or dividend from an Unrestricted Subsidiary after the Closing
Date (other than
distributions or dividends from the Oncor Subsidiaries or any Successor Oncor
Business, except to the extent such distributions or dividends were received
prior to the Secured Notes Issue Date and exceeded the aggregate amount of
Investments in the Oncor Subsidiaries then outstanding under clauses (7) and
(11) of Section 4.07(b) hereof and clauses (8) and (13) of the definition of
“Permitted Investments”; and, to the extent that the amount of such
distributions or dividends did not exceed such aggregate amount of Investments
then outstanding under such clauses, the amount of such Investments then
outstanding under any of such clauses shall be reduced by the amount of such
distributions or dividends received); plus

     

    (e)           in
the case of the redesignation of an Unrestricted Subsidiary (other than the
Oncor Subsidiaries or any Successor Oncor Business) as a Restricted Subsidiary
after the Closing Date, the fair market value of the Investment in such
Unrestricted Subsidiary, as determined by the Issuer in good faith (or if such
fair market value exceeds $200.0 million, in writing by an Independent
Financial Advisor), at the time of the redesignation of such Unrestricted
Subsidiary as a Restricted Subsidiary other than to the extent the Investment in
such Unrestricted Subsidiary was made by the Issuer or a Restricted Subsidiary
pursuant to clause (7) of Section 4.07(b) hereof or to the extent such
Investment constituted a Permitted Investment.

     

    (b)           The
provisions of Section 4.07(a) shall not prohibit:

     

    (1)           the
payment of any dividend within 60 days after the date of declaration thereof, if
at the date of declaration such payment would have complied with the provisions
of this Indenture;

     

    (2)           (a) the
redemption, repurchase, retirement or other acquisition of any Equity Interests
(“Treasury Capital
Stock”) or Subordinated Indebtedness of the Issuer or a Guarantor or any
Equity Interests of any direct or indirect parent company of the Issuer, in
exchange for, or out of the proceeds of the substantially concurrent sale (other
than to a Restricted Subsidiary) of, Equity Interests of the Issuer or any
direct or indirect parent company of the Issuer to the extent contributed to the
capital of the Issuer (in each case, other than any Disqualified Stock) (“Refunding Capital
Stock”) and (b) if immediately prior to the retirement of Treasury
Capital Stock, the declaration and payment of dividends thereon was permitted
under clause (6) of this Section 4.07(b), the declaration and payment of
dividends on the Refunding Capital Stock (other than Refunding Capital Stock the
proceeds of which were used to redeem, repurchase, retire or otherwise acquire
any Equity Interests of any direct or indirect parent company of the Issuer) in
an aggregate amount per year no greater than the aggregate amount of dividends
per annum that were declarable and payable on such Treasury Capital Stock
immediately prior to such retirement;

     

    (3)           the
redemption, repurchase or other acquisition or retirement of Subordinated
Indebtedness of the Issuer or a Guarantor made in exchange for, or out of the
proceeds of the substantially concurrent sale of, new Indebtedness of the Issuer
or a Guarantor, as the case may be, which is incurred in compliance with Section
4.09 hereof, so long as:

     

    (a)           the
principal amount (or accreted value) of such new Indebtedness does not exceed
the principal amount of (or accreted value, if applicable), plus any accrued and
unpaid interest on, the Subordinated Indebtedness being so redeemed,
repurchased, acquired or retired for value, plus the amount of any reasonable
premium (including reasonable tender premiums), defeasance costs and any
reasonable fees and expenses incurred in connection with the issuance of such
new Indebtedness;

     

    (b)           such
new Indebtedness is subordinated to the Notes or the applicable Guarantee at
least to the same extent as such Subordinated Indebtedness so purchased,
exchanged, redeemed, repurchased, acquired or retired for value;

     

    (c)           such
new Indebtedness has a final scheduled maturity date equal to or later than the
final scheduled maturity date of the Subordinated Indebtedness being so
redeemed, repurchased, acquired or retired; and

     

    (d)           such
new Indebtedness has a Weighted Average Life to Maturity equal to or greater
than the remaining Weighted Average Life to Maturity of the Subordinated
Indebtedness being so redeemed, repurchased, acquired or retired;

     

    (4)           a
Restricted Payment to pay for the repurchase, retirement or other acquisition or
retirement for value of Equity Interests (other than Disqualified Stock) of the
Issuer or any of its direct or indirect parent companies held by any future,
present or former employee, director or consultant of the Issuer, any of its
Subsidiaries or any of its direct or indirect parent companies pursuant to any
management equity plan or stock option plan or any other management or employee
benefit plan or agreement, including any Equity Interests rolled over by
management of the Issuer or any of its direct or indirect parent companies in
connection with the Transactions; provided, however, that the
aggregate Restricted Payments made under this clause (4) do not exceed in
any calendar year $25.0 million (which shall increase to $50.0 million
subsequent to the consummation of an underwritten public Equity Offering by the
Issuer or any direct or indirect parent entity of the Issuer) (with unused
amounts in any calendar year being carried over to succeeding calendar years
subject to a maximum (without giving effect to the following proviso) of
$75.0 million in any calendar year (which shall increase to
$150.0 million subsequent to the consummation of an underwritten public
Equity Offering by the Issuer or any direct or indirect parent entity of the
Issuer)); provided, further, that such
amount in any calendar year may be increased by an amount not to
exceed:

     

    (a)           the
cash proceeds from the sale of Equity Interests (other than Disqualified Stock)
of the Issuer and, to the extent contributed to the Issuer, Equity Interests of
any of the Issuer’s direct or indirect parent companies, in each case to members
of management, directors or consultants of the Issuer, any of its Subsidiaries
or any of its direct or indirect parent companies that occurs after the Closing
Date, to the extent the cash proceeds from the sale of such Equity Interests
have not otherwise been applied to the payment of Restricted Payments by virtue
of clause (3) of Section 4.07(a) hereof; plus

     

    (b)           the
cash proceeds of key man life insurance policies received by the Issuer or its
Restricted Subsidiaries after the Closing Date; less

     

    (c)           the
amount of any Restricted Payments previously made with the cash proceeds
described in clauses (a) and (b) of this clause (4);

     

    and provided, further, that
cancellation of Indebtedness owing to the Issuer or any Restricted Subsidiary
from members of management of the Issuer, any of the Issuer’s direct or indirect
parent companies or any of the Issuer’s Restricted Subsidiaries in connection
with a repurchase of Equity Interests of the Issuer or any of its direct or
indirect parent companies shall not be deemed to constitute a Restricted Payment
for purposes of this Section 4.07 or any other provision of this
Indenture;

     

    (5)           the
declaration and payment of dividends to holders of any class or series of
Disqualified Stock of the Issuer or any of its Restricted Subsidiaries or any
class or series of Preferred Stock of any Restricted Subsidiary issued in
accordance with Section 4.09 hereof to the extent such dividends are included in
the definition of “Fixed Charges”;

     

    (6)           (a)           the
declaration and payment of dividends to holders of any class or series of
Designated Preferred Stock (other than Disqualified Stock) issued by the Issuer
after the Closing Date;

     

    (b)           the
declaration and payment of dividends to a direct or indirect parent company of
the Issuer, the proceeds of which shall be used to fund the payment of dividends
to holders of any class or series of Designated Preferred Stock (other than
Disqualified Stock) of such parent corporation issued after the Closing Date;
provided that
the amount of dividends paid pursuant to this clause (b) shall not exceed
the aggregate amount of cash actually contributed to the Issuer from the sale of
such Designated Preferred Stock; or

     

    (c)           the
declaration and payment of dividends on Refunding Capital Stock that is
Preferred Stock in excess of the dividends declarable and payable thereon
pursuant to clause (2) of Section 4.07(b) hereof;

     

    provided, however, in the case
of each of (a) and (c) of this clause (6), that for the most recently ended four
full fiscal quarters for which internal financial statements are available
immediately preceding the date of issuance of such Designated Preferred Stock or
the declaration of such dividends on Refunding Capital Stock that is Preferred
Stock, after giving effect to such issuance or declaration on a pro forma basis, the
Restricted Payment Coverage Ratio for the most recently ended four fiscal
quarters for which internal financial statements are available immediately
preceding the date of such Restricted Payment would have been at least 2.00 to
1.00;

     

    (7)           Investments
in Unrestricted Subsidiaries having an aggregate fair market value (with the
fair market value of each Investment being measured at the time made and without
giving effect to subsequent changes in value), taken together with all other
Investments made pursuant to this clause (7) that are at the time outstanding,
without giving effect to the sale of an Unrestricted Subsidiary to the extent
the proceeds of such sale do not consist of cash or marketable securities, not
to exceed (A) 1.5% of Total Assets at the time of such Investment and (B) to the
extent invested in any of the Oncor Subsidiaries or any Successor Oncor
Business, $500.0 million;

     

    (8)           repurchases
of Equity Interests deemed to occur upon exercise of stock options or warrants
if such Equity Interests represent a portion of the exercise price of such
options or warrants;

     

    (9)           the
declaration and payment of dividends on the Issuer’s common stock (or the
payment of dividends to any direct or indirect parent entity to fund a payment
of dividends on such entity’s common stock), following consummation of the first
public offering of the Issuer’s common stock or membership interests or the
common stock of any of its direct or indirect parent companies after the Closing
Date, of up to 6% per annum of the net cash proceeds received by or
contributed to the Issuer in or from any such public offering, other than public
offerings with respect to the Issuer’s common stock registered on Form S-4 or
Form S-8 and other than any public sale constituting an Excluded
Contribution;

     

    (10)           Restricted
Payments in an aggregate amount equal to the amount of Excluded
Contributions;

     

    (11)           other
Restricted Payments in an aggregate amount taken together with all other
Restricted Payments made pursuant to this clause (11) not to exceed 2.0% of
Total Assets at the time made;

     

    (12)           distributions
or payments of Receivables Fees;

     

    (13)           any
Restricted Payment made as part of or in connection with the Transactions
(including payments made after the Closing Date in respect of the Issuer’s and
its Subsidiaries’ long-term incentive plan or in respect of tax gross-ups or
other deferred compensation) and the fees and expenses related thereto or used
to fund amounts owed to Affiliates (including dividends to any direct or
indirect parent of the Issuer to permit payment by such parent of such amount),
in each case to the extent permitted by Section 4.11 hereof;

     

    (14)           the
repurchase, redemption or other acquisition or retirement for value of any
Subordinated Indebtedness in accordance with the provisions similar to those
described under Sections 4.10 and 4.14 hereof; provided that all
Notes tendered by Holders in connection with a Change of Control Offer, Asset
Sale Offer or Collateral Asset Sale Offer, as applicable, have been repurchased,
redeemed or acquired for value;

     

    (15)           the
declaration and payment of dividends by the Issuer to, or the making of loans
to, any direct or indirect parent company in amounts required for any direct or
indirect parent companies to pay, in each case without duplication,

     

    (a)           franchise
and excise taxes and other fees, taxes and expenses required to maintain their
corporate existence;

     

    (b)           foreign,
federal, state and local income taxes, to the extent such income taxes are
attributable to the income of the Issuer and its Restricted Subsidiaries and, to
the extent of the amount actually received from its Unrestricted Subsidiaries,
in amounts required to pay such taxes to the extent attributable to the income
of such Unrestricted Subsidiaries; provided that in each
case the amount of such payments in any fiscal year does not exceed the amount
that the Issuer and its Subsidiaries would be required to pay in respect of
foreign, federal, state and local taxes for such fiscal year were the Issuer,
its Restricted Subsidiaries and its Unrestricted Subsidiaries (to the extent
described above) to pay such taxes separately from any such parent
entity;

     

    (c)           customary
salary, bonus and other benefits payable to officers and employees of any direct
or indirect parent company of the Issuer to the extent such salaries, bonuses
and other benefits are attributable to the ownership or operation of the Issuer
and its Restricted Subsidiaries;

     

    (d)           general
corporate operating and overhead costs and expenses of any direct or indirect
parent company of the Issuer to the extent such costs and expenses are
attributable to the ownership or operation of the Issuer and its Restricted
Subsidiaries; and

     

    (e)           fees
and expenses other than to Affiliates of the Issuer related to any unsuccessful
equity or debt offering of such parent entity; or

     

    (16) the
spin-off by the Issuer of the Equity Interests of EFIH in a Permitted Asset
Transfer made in accordance with Section 4.16 hereof;

     

    provided, however, that at the
time of, and after giving effect to, any Restricted Payment permitted under
clauses (7) and (11) of this Section 4.07(b), no Default shall have occurred and
be continuing or would occur as a consequence thereof.

     

    The
Issuer shall not permit any Unrestricted Subsidiary to become a Restricted
Subsidiary except pursuant to the penultimate paragraph of the definition of
“Unrestricted Subsidiary.”  For purposes of designating any Restricted
Subsidiary as an Unrestricted Subsidiary, all outstanding Investments by the
Issuer and its Restricted Subsidiaries (except to the extent repaid) in the
Subsidiary so designated shall be deemed to be Restricted Payments in an amount
determined as set forth in the last sentence of the definition of
“Investments.”  Such designation shall be permitted only if a
Restricted Payment in such amount would be permitted at such time, whether
pursuant to Section 4.07(a) hereof or under clause (7), (10) or (11) of Section
4.07(b) hereof, or pursuant to the definition of “Permitted Investments,” and if
such Subsidiary otherwise meets the definition of an Unrestricted
Subsidiary.

     

    Notwithstanding
the foregoing provisions of this Section 4.07, the Issuer shall not, and shall
not permit any of its Restricted Subsidiaries to, pay any cash dividend or make
any cash distribution on, or in respect of, the Issuer’s Capital Stock or
purchase for cash or otherwise acquire for cash any Capital Stock of the Issuer
or any direct or indirect parent of the Issuer for the purpose of paying any
cash dividend or making any cash distribution to, or acquiring Capital Stock of
any direct or indirect parent of the Issuer for cash from, the Investors, or
guarantee any Indebtedness of any Affiliate of the Issuer for the purpose of
paying such dividend, making such distribution or so acquiring such Capital
Stock to or from the Investors, in each case by means of utilization of the
cumulative Restricted Payment credit provided by Section 4.07(a) hereof, or the
exceptions provided by clauses (1), (7) or (11) of Section 4.07(b) hereof or
clauses (8), (10) or (13) of the definition of “Permitted Investments,” unless
(x) at the time and after giving effect to such payment, the Consolidated
Leverage Ratio of the Issuer would be equal to or less than 7.00 to 1.00 and (y)
such payment is otherwise in compliance with this Section 4.07.

     

    Section
4.08 Dividend and Other Payment
Restrictions Affecting Restricted Subsidiaries

     

    
      	
              .

            

    

     

    (a)           The
Issuer shall not, and shall not permit any of its Restricted Subsidiaries that
are not Guarantors to, directly or indirectly, create or otherwise cause or
suffer to exist or become effective any consensual encumbrance or consensual
restriction on the ability of any such Restricted Subsidiary to:

     

    (1)           (A)           pay
dividends or make any other distributions to the Issuer or any of its Restricted
Subsidiaries on its Capital Stock or with respect to any other interest or
participation in, or measured by, its profits, or

     

    (B)           pay
any Indebtedness owed to the Issuer or any of its Restricted
Subsidiaries;

     

    (2)           make
loans or advances to the Issuer or any of its Restricted Subsidiaries;
or

     

    (3)           sell,
lease or transfer any of its properties or assets to the Issuer or any of its
Restricted Subsidiaries.

     

    (b)           The
restrictions in Section 4.08(a) hereof shall not apply to encumbrances or
restrictions existing under or by reason of:

     

    (1)           contractual
encumbrances or restrictions in effect on the Issue Date, including pursuant to
the TCEH Senior Secured Facilities and the related documentation and the
Existing Notes Indentures and the related documentation;

     

    (2)           (i)
this Indenture, the Notes and the Security Documents and (ii) the EFIH Notes and
related documentation (including the related security documents) in effect on
the Issue Date;

     

    (3)           purchase
money obligations for property acquired in the ordinary course of business that
impose restrictions of the nature discussed in clause (3) of Section 4.08(a)
hereof on the property so acquired;

     

    (4)           applicable
law or any applicable rule, regulation or order;

     

    (5)           any
agreement or other instrument of a Person acquired by the Issuer or any
Restricted Subsidiary in existence at the time of such acquisition (but not
created in contemplation thereof), which encumbrance or restriction is not
applicable to any Person, or the properties or assets of any Person, other than
the Person and its Subsidiaries, or the property or assets of the Person and its
Subsidiaries, so acquired;

     

    (6)           contracts
for the sale of assets, including customary restrictions with respect to a
Subsidiary of the Issuer pursuant to an agreement that has been entered into for
the sale or disposition of all or substantially all of the Capital Stock or
assets of such Subsidiary;

     

    (7)           Secured
Indebtedness that limits the right of the debtor to dispose of the assets
securing such Indebtedness that is otherwise permitted to be incurred pursuant
to Sections 4.09 and 4.12 hereof;

     

    (8)           restrictions
on cash or other deposits or net worth imposed by customers under contracts
entered into in the ordinary course of business;

     

    (9)           (A)
other Indebtedness, Disqualified Stock or Preferred Stock of Foreign
Subsidiaries permitted to be incurred subsequent to the Issue Date pursuant to
the provisions of Section 4.09 hereof or (B) other Indebtedness, Disqualified
Stock or Preferred Stock permitted to be incurred subsequent to the Issue Date
pursuant to the provisions of Section 4.09 hereof and either (i) the provisions
relating to such encumbrance or restriction contained in such Indebtedness are
no less favorable to the Issuer, taken as a whole, as determined by the Issuer
in good faith, than the provisions contained in the TCEH Indenture (in the case
of Indebtedness of TCEH and its restricted Subsidiaries) or the EFIH Indenture
(in the case of Indebtedness of EFIH and its restricted Subsidiaries), in the
case of either of such Indentures only, as in effect on the Issue Date or (ii)
any such encumbrance or restriction does not prohibit (except upon a default
thereunder) the payment of dividends or loans in an amount sufficient, as
determined by the Issuer in good faith, to make scheduled payments of cash
interest of the Notes when due;

     

     (10)           customary
provisions in joint venture agreements and other agreements or arrangements
relating solely to such joint venture;

     

    (11)           customary
provisions contained in leases or licenses of intellectual property and other
agreements, in each case entered into in the ordinary course of
business;

     

    (12)           any
encumbrances or restrictions of the type referred to in clauses (1), (2) and (3)
of Section 4.08(a) hereof imposed by any amendments, modifications,
restatements, renewals, increases, supplements, refundings, replacements or
refinancing of the contracts, instruments or obligations referred to in clauses
(1) through (11) of this Section 4.08(b); provided that such
amendments, modifications, restatements, renewals, increases, supplements,
refundings, replacements or refinancings are, in the good faith judgment of the
Issuer, no more restrictive with respect to such encumbrance and other
restrictions taken as a whole than those prior to such amendment, modification,
restatement, renewal, increase, supplement, refunding, replacement or
refinancing;

     

    (13)           restrictions
created in connection with any Receivables Facility for the benefit of the
Issuer or any of its Restricted Subsidiaries that, in the good faith
determination of the Issuer, are necessary or advisable to effect the
transactions contemplated under such Receivables Facility; and

     

    (14)           restrictions
or conditions contained in any trading, netting, operating, construction,
service, supply, purchase, sale, hedging or similar agreement to which the
Issuer or any Restricted Subsidiary is a party entered into in the ordinary
course of business; provided that such
agreement prohibits the encumbrance solely to the property or assets of the
Issuer or such Restricted Subsidiary that are the subject of such agreement, the
payment rights arising thereunder and/or the proceeds thereof and does not
extend to any other asset or property of the Issuer or such Restricted
Subsidiary or the assets or property of any other Restricted
Subsidiary.

     

    Section
4.09 Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred
Stock

     

    
      	
              .

            

    

     

    (a)           The
Issuer shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, create, incur, issue, assume, guarantee or otherwise
become directly or indirectly liable, contingently or otherwise (collectively,
“incur” and,
collectively, an “incurrence”) with
respect to any Indebtedness (including Acquired Indebtedness), and the Issuer
shall not issue any shares of Disqualified Stock and shall not permit any
Restricted Subsidiary to issue any shares of Disqualified Stock or Preferred
Stock; provided, however, that
(i) the Issuer may
incur Indebtedness (including Acquired Indebtedness) or issue shares of
Disqualified Stock, and any of its Restricted Subsidiaries (other than TCEH and
its Restricted Subsidiaries) may incur Indebtedness (including Acquired
Indebtedness), issue shares of Disqualified Stock and issue shares of Preferred
Stock, if the Fixed Charge Coverage Ratio on a consolidated basis for the Issuer
and its Restricted Subsidiaries’ most recently ended four fiscal quarters for
which internal financial statements are available immediately preceding the date
on which such additional Indebtedness is incurred or such Disqualified Stock or
Preferred Stock is issued would have been at least 2.00 to 1.00 and (ii) TCEH or
any of its Restricted Subsidiaries may incur Indebtedness (including Acquired
Indebtedness), issue shares of Disqualified Stock and issue shares of Preferred
Stock, if the Fixed Charge Coverage Ratio on a consolidated basis for TCEH and
its Restricted Subsidiaries most recently ended four full fiscal quarters for
which internal financial statements are available immediately preceding the date
on which such additional Indebtedness is incurred or such Disqualified Stock or
Preferred Stock is issued would have been at least 2.00 to 1.00, in each case
determined on a pro forma basis
(including a pro forma application of
the net proceeds therefrom), as if the additional Indebtedness had been
incurred, or the Disqualified Stock or Preferred Stock had been issued, as the
case may be, and the application of proceeds therefrom had occurred at the
beginning of such four-quarter period.

     

    (b)           The
provisions of Section 4.09(a) hereof shall not apply to:

     

    (1)           the
incurrence of Indebtedness under (x) Credit Facilities by the Issuer or any of
its Restricted Subsidiaries and the issuance and creation of letters of credit
and bankers’ acceptances thereunder (with letters of credit and bankers’
acceptances being deemed to have a principal amount equal to the face amount
thereof), up to an aggregate principal amount of $26,500.0 million
outstanding at any one time and (y) any Collateral Posting
Facility;

     

    (2)           the
incurrence (w) by the Issuer or any Guarantor of Indebtedness represented by the
Notes to be issued on the Issue Date (including any Guarantees thereof) and any
Exchange Notes (including any guarantees thereof), (x) by the Issuer of
Indebtedness represented by the 9.75% Notes and any additional 9.75% Notes
(including any guarantees thereof) and by EFIH of Indebtedness represented by
the EFIH Notes and any additional EFIH Notes, (y) by the Issuer of any
Additional Notes to be issued after the Issue Date (including any guarantees
thereof) and (z) by the Issuer or any Guarantor of any other Indebtedness; provided that the
aggregate principal amount of Indebtedness incurred under this clause (2),
together with refinancings thereof, shall not exceed $4.0 billion; and provided, further that the
aggregate amount of Indebtedness that may be incurred under this clause (2)
shall be reduced by an amount equal to the amount of Parity Lien Debt repaid
using the Net Proceeds from Asset Sales of Collateral or other Oncor-related
Assets in accordance with Section 4.10 hereof;

     

    (3)           Indebtedness
of the Issuer and its Restricted Subsidiaries in existence on the Issue Date
(other than Indebtedness described in clauses (1) and (2) of this Section
4.09(b)), including the Existing Notes (including any PIK interest which may be
paid with respect thereto and guarantees thereof);

     

    (4)           Indebtedness
consisting of Capitalized Lease Obligations and Purchase Money Obligations, so
long as such Indebtedness (except Environmental CapEx Debt) exists at the date
of such purchase, lease or improvement, or is created within 270 days
thereafter;

     

    (5)           Indebtedness
incurred by the Issuer or any of its Restricted Subsidiaries constituting
reimbursement obligations with respect to letters of credit issued in the
ordinary course of business, including letters of credit in respect of workers’
compensation or employee health claims, or other Indebtedness with respect to
reimbursement-type obligations regarding workers’ compensation or employee
health claims; provided, however, that upon
the drawing of such letters of credit or the incurrence of such Indebtedness,
such obligations are reimbursed within 30 days following such drawing or
incurrence;

     

    (6)           Indebtedness
arising from agreements of the Issuer or its Restricted Subsidiaries providing
for indemnification, adjustment of purchase price or similar obligations, in
each case, incurred or assumed in connection with the disposition of any
business, assets or a Subsidiary, other than guarantees of Indebtedness incurred
by any Person acquiring all or any portion of such business, assets or a
Subsidiary for the purpose of financing such acquisition; provided, however, that such
Indebtedness is not reflected on the balance sheet of the Issuer, or any of its
Restricted Subsidiaries (contingent obligations referred to in a footnote to
financial statements and not otherwise reflected on the balance sheet shall not
be deemed to be reflected on such balance sheet for purposes of this clause
(6));

     

    (7)           Indebtedness
of the Issuer to a Restricted Subsidiary; provided that any
such Indebtedness (other than intercompany loans from TCEH and its Subsidiaries
required to be unsubordinated by the terms of any Indebtedness of TCEH or such
Subsidiaries) owing to a Restricted Subsidiary that is not a Guarantor is
expressly subordinated in right of payment to the Notes; provided, further, that any
subsequent issuance or transfer of any Capital Stock or any other event which
results in any Restricted Subsidiary ceasing to be a Restricted Subsidiary or
any other subsequent transfer of any such Indebtedness (except to the Issuer or
another Restricted Subsidiary) shall be deemed, in each case, to be an
incurrence of such Indebtedness not permitted by this clause (7);

     

    (8)           Indebtedness
of a Restricted Subsidiary to the Issuer or another Restricted Subsidiary; provided that if a
Guarantor incurs such Indebtedness to a Restricted Subsidiary that is not a
Guarantor (other than intercompany loans from TCEH and its Subsidiaries required
to be unsubordinated by the terms of any Indebtedness of TCEH or such
Subsidiaries), such Indebtedness is expressly subordinated in right of payment
to the Guarantee of the Notes of such Guarantor; provided, further, that any
subsequent issuance or transfer of any Capital Stock or any other event which
results in any Restricted Subsidiary ceasing to be a Restricted Subsidiary or
any other subsequent transfer of any such Indebtedness (except to the Issuer or
another Restricted Subsidiary) shall be deemed, in each case, to be an
incurrence of such Indebtedness not permitted by this clause (8);

     

    (9)           shares
of Preferred Stock of a Restricted Subsidiary issued to the Issuer or another
Restricted Subsidiary; provided that any
subsequent issuance or transfer of any Capital Stock or any other event which
results in any such Restricted Subsidiary ceasing to be a Restricted Subsidiary
or any other subsequent transfer of any such shares of Preferred Stock (except
to the Issuer or another of its Restricted Subsidiaries) shall be deemed in each
case to be an issuance of such shares of Preferred Stock not permitted by this
clause (9);

     

    (10)           Hedging
Obligations; provided that (i) other than in
the case of commodity Hedging Obligations, such Hedging Obligations are not
entered into for speculative purposes (as determined by the Issuer in its
reasonable discretion acting in good faith) and (ii) in the case of speculative
commodity Hedging Obligations, such Hedging Obligations are entered into in the
ordinary course of business and are consistent with past practice;

     

    (11)           obligations
in respect of performance, bid, appeal and surety bonds and completion
guarantees provided by the Issuer or any of its Restricted Subsidiaries in the
ordinary course of business;

     

    (12)           (a) Indebtedness
or Disqualified Stock of the Issuer and Indebtedness, Disqualified Stock or
Preferred Stock of any Restricted Subsidiary equal to 100.0% of the net cash
proceeds received by the Issuer since immediately after the Closing Date from
the issue or sale of Equity Interests of the Issuer or cash contributed to the
capital of the Issuer (in each case, other than Excluded Contributions or
proceeds of Disqualified Stock or sales of Equity Interests to the Issuer or any
of its Subsidiaries) as determined in accordance with clauses (3)(b) and (3)(c)
of Section 4.07(a) hereof to the extent such net cash proceeds or cash have not
been applied pursuant to such clauses to make Restricted Payments or to make
other Investments, payments or exchanges pursuant to Section 4.07(b) hereof or
to make Permitted Investments (other than Permitted Investments specified in
clauses (1) and (3) of the definition thereof) and (b) Indebtedness or
Disqualified Stock of the Issuer and Indebtedness, Disqualified Stock or
Preferred Stock of any Restricted Subsidiary not otherwise permitted hereunder
in an aggregate principal amount or liquidation preference, which when
aggregated with the principal amount and liquidation preference of all other
Indebtedness, Disqualified Stock and Preferred Stock then outstanding and
incurred pursuant to this clause (12)(b), does not at any one time
outstanding exceed $1,750.0 million (it being understood that any
Indebtedness, Disqualified Stock or Preferred Stock incurred pursuant to this
clause (12)(b) shall cease to be deemed incurred or outstanding for
purposes of this clause (12)(b) but shall be deemed incurred for the
purposes of Section 4.09(a) hereof from and after the first date on which the
Issuer or such Restricted Subsidiary could have incurred such Indebtedness,
Disqualified Stock or Preferred Stock under Section 4.09(a) hereof without
reliance on this clause (12)(b));

     

    (13)           the
incurrence or issuance by the Issuer or any Restricted Subsidiary of
Indebtedness, Disqualified Stock or Preferred Stock which serves to refund or
refinance any Indebtedness, Disqualified Stock or Preferred Stock of the Issuer
or any Restricted Subsidiary incurred as permitted under Section 4.09(a) hereof
and clauses (2), (3), (4) and (12)(a) of this Section 4.09(b), this
clause (13) and clause (14) of this Section 4.09(b) or any Indebtedness,
Disqualified Stock or Preferred Stock of the Issuer or any Restricted Subsidiary
issued to so refund or refinance such Indebtedness, Disqualified Stock or
Preferred Stock of the Issuer or any Restricted Subsidiary including additional
Indebtedness, Disqualified Stock or Preferred Stock incurred to pay premiums
(including reasonable tender premiums), defeasance costs and fees in connection
therewith (the “Refinancing
Indebtedness”) prior to its respective maturity; provided, however, that such
Refinancing Indebtedness:

     

    (a)           has
a Weighted Average Life to Maturity at the time such Refinancing Indebtedness is
incurred which is not less than the remaining Weighted Average Life to Maturity
of the Indebtedness, Disqualified Stock or Preferred Stock being refunded or
refinanced,

     

    (b)           to
the extent such Refinancing Indebtedness refinances (i) Indebtedness
subordinated or pari passu to the Notes or
any Guarantee thereof, such Refinancing Indebtedness is subordinated or pari passu to the Notes or
the Guarantee at least to the same extent as the Indebtedness being refinanced
or refunded or (ii) Disqualified Stock or Preferred Stock, such Refinancing
Indebtedness must be Disqualified Stock or Preferred Stock, respectively,
and

     

    (c)           shall
not include Indebtedness, Disqualified Stock or Preferred Stock of a Subsidiary
of the Issuer that is not a Guarantor that refinances Indebtedness, Disqualified
Stock or Preferred Stock of the Issuer or a Guarantor;

     

    and,
provided, further, that
subclause (a) of this clause (13) shall not apply to any refunding or
refinancing of any Obligations under Credit Facilities secured by Permitted
Liens; and, provided, further that with
respect to any pollution control revenue bonds or similar instruments, the
maturity of any series thereof shall be deemed to be the date set forth in any
instrument governing such Indebtedness for the remarketing of such
Indebtedness;

     

    (14)           Indebtedness,
Disqualified Stock or Preferred Stock of (x) the Issuer or a Restricted
Subsidiary incurred to finance an acquisition or (y) Persons that are
acquired by the Issuer or any Restricted Subsidiary or merged into the Issuer or
a Restricted Subsidiary in accordance with the terms of this Indenture; provided that after
giving effect to such acquisition or merger, either

     

    (a)           in
the case of an acquisition by or merger with the Issuer or any of its Restricted
Subsidiaries other than TCEH and its Restricted Subsidiaries, either (A) the
Issuer would be permitted to incur at least $1.00 of additional Indebtedness
pursuant to clause (i) of the Fixed Charge Coverage Ratio test set forth in
Section 4.09(a) hereof, or (B) such Fixed Charge Coverage Ratio of the Issuer
and its Restricted Subsidiaries is greater than immediately prior to such
acquisition or merger; or

     

    (b)           in
the case of an acquisition by or merger with TCEH or any of its Restricted
Subsidiaries, either (A) TCEH would be permitted to incur at least $1.00 of
additional Indebtedness pursuant to clause (ii) of the Fixed Charge Coverage
Ratio test set forth in Section 4.09(a) hereof, or (B) such Fixed Charge
Coverage Ratio of TCEH and its Restricted Subsidiaries is greater than
immediately prior to such acquisition or merger;

     

    (15)           Indebtedness
arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument drawn against insufficient funds in the ordinary
course of business; provided that such Indebtedness
is extinguished within two Business Days of its incurrence;

     

    (16)           Indebtedness
of the Issuer or any of its Restricted Subsidiaries supported by a letter of
credit issued pursuant to any Credit Facilities, in a principal amount not in
excess of the stated amount of such letter of credit;

     

    (17)           (a) any
guarantee by the Issuer or a Restricted Subsidiary of Indebtedness or other
obligations of any Restricted Subsidiary, so long as the incurrence of such
Indebtedness incurred by such Restricted Subsidiary is permitted under the terms
of this Indenture, or (b) any guarantee by a Restricted Subsidiary of
Indebtedness of the Issuer; provided that such
guarantee is incurred in accordance with Section 4.15 hereof;

     

    (18)           Indebtedness
of the Issuer or any of its Restricted Subsidiaries consisting of (i) the
financing of insurance premiums or (ii) take-or-pay obligations contained
in supply arrangements, in each case, incurred in the ordinary course of
business; and

     

    (19)           Indebtedness
consisting of Indebtedness issued by the Issuer or any of its Restricted
Subsidiaries to current or former officers, directors and employees thereof,
their respective estates, spouses or former spouses, in each case to finance the
purchase or redemption of Equity Interests of the Issuer or any direct or
indirect parent company of the Issuer to the extent described in clause (4) of
Section 4.07(b) hereof.

     

    (c)           For
purposes of determining compliance with this Section 4.09:

     

    (1)           in
the event that an item of Indebtedness, Disqualified Stock or Preferred Stock
(or any portion thereof) meets the criteria of more than one of the categories
of permitted Indebtedness, Disqualified Stock or Preferred Stock described in
clauses (1) through (19) of  Section 4.09(b) hereof or is entitled to
be incurred pursuant to Section 4.09(a) hereof, the Issuer, in its sole
discretion, shall classify or reclassify such item of Indebtedness, Disqualified
Stock or Preferred Stock (or any portion thereof) and shall only be required to
include the amount and type of such Indebtedness, Disqualified Stock or
Preferred Stock in one of the above clauses; and

     

    (2)           at
the time of incurrence, the Issuer shall be entitled to divide and classify an
item of Indebtedness in more than one of the types of Indebtedness described in
Sections 4.09(a) and 4.09(b) hereof;

     

    provided that all
Indebtedness outstanding under the TCEH Senior Secured Facilities on the Issue
Date shall be treated as incurred on the Issue Date under clause (1) of Section
4.09(b) hereof.

     

    (d)           Accrual
of interest, the accretion of accreted value and the payment of interest in the
form of additional Indebtedness, Disqualified Stock or Preferred Stock shall not
be deemed to be an incurrence of Indebtedness, Disqualified Stock or Preferred
Stock for purposes of this Section 4.09.

     

    (e)           For
purposes of determining compliance with any U.S. dollar-denominated restriction
on the incurrence of Indebtedness, the U.S. dollar-equivalent principal amount
of Indebtedness denominated in a foreign currency shall be calculated based on
the relevant currency exchange rate in effect on the date such Indebtedness was
incurred, in the case of term debt, or first committed, in the case of revolving
credit debt; provided that if such
Indebtedness is incurred to refinance other Indebtedness denominated in a
foreign currency, and such refinancing would cause the applicable U.S.
dollar-denominated restriction to be exceeded if calculated at the relevant
currency exchange rate in effect on the date of such refinancing, such U.S.
dollar-denominated restriction shall be deemed not to have been exceeded so long
as the principal amount of such refinancing Indebtedness does not exceed the
principal amount of such Indebtedness being refinanced.

     

    The
principal amount of any Indebtedness incurred to refinance other Indebtedness,
if incurred in a different currency from the Indebtedness being refinanced,
shall be calculated based on the currency exchange rate applicable to the
currencies in which such respective Indebtedness is denominated that is in
effect on the date of such refinancing.

     

    (f)           Notwithstanding
anything in this Section 4.09 to the contrary, the Issuer shall not, and
shall not permit any Guarantor to, directly or indirectly, incur any
Indebtedness (including Acquired Indebtedness) that is subordinated or junior in
right of payment to any Indebtedness of the Issuer or such Guarantor, as the
case may be, unless such Indebtedness is expressly subordinated in right of
payment to the Notes or such Guarantor’s Guarantee to the extent and in the same
manner as such Indebtedness is subordinated to other Indebtedness of the Issuer
or such Guarantor, as the case may be.

     

    For
purposes of this Indenture, Indebtedness that is unsecured is not deemed to be
subordinated or junior to Secured Indebtedness merely because it is unsecured,
and Senior Indebtedness is not deemed to be subordinated or junior to any other
Senior Indebtedness merely because it has a junior priority with respect to the
same collateral.

     

    Section
4.10 Asset
Sales

     

    
      	
              .

            

    

     

    (a) The
Issuer shall not, and shall not permit any of its Restricted Subsidiaries to
consummate, directly or indirectly, an Asset Sale, unless:

     

    (1)           the
Issuer or such Restricted Subsidiary, as the case may be, receives consideration
at the time of such Asset Sale at least equal to the fair market value (as
determined in good faith by the Issuer) of the assets sold or otherwise disposed
of; and

     

    (2)           (A)           except
in the case of a Permitted Asset Swap, at least 75% of the consideration
therefor received by the Issuer or such Restricted Subsidiary, as the case may
be, is in the form of cash or Cash Equivalents; provided that the
amount of:

     

    (a)           except
in the case of an Asset Sale of Collateral, any liabilities (as shown on the
Issuer’s or such Restricted Subsidiary’s most recent balance sheet or in the
footnotes thereto) of the Issuer or such Restricted Subsidiary, other than
liabilities that are by their terms subordinated to the Notes or that are owed
to the Issuer or an Affiliate of the Issuer, that are assumed by the transferee
of any such assets and for which the Issuer and all of its Restricted
Subsidiaries have been validly released by all applicable creditors in
writing,

     

    (b)           any
securities received by the Issuer or such Restricted Subsidiary from such
transferee that are converted by the Issuer or such Restricted Subsidiary into
cash (to the extent of the cash received) within 180 days following the closing
of such Asset Sale, and

     

    (c)           any
Designated Non-cash Consideration received by the Issuer or such Restricted
Subsidiary in such Asset Sale having an aggregate fair market value, taken
together with all other Designated Non-cash Consideration received pursuant to
this clause (c) that is at that time outstanding, not to exceed 5% of Total
Assets at the time of the receipt of such Designated Non-cash Consideration,
with the fair market value of each item of Designated Non-cash Consideration
being measured at the time received and without giving effect to subsequent
changes in value; provided that the
aggregate fair market value of Designated Non-cash Consideration received by
EFIH after the Secured Notes Issue Date in respect of Asset Sales of Collateral
shall not exceed $400.0 million,

     

    shall be
deemed to be cash for purposes of this clause (a)(2)(A) and for no other
purpose; and

     

    (B)           
any consideration received by EFIH from an Asset Sale of Collateral shall be
concurrently pledged as Collateral for the benefit of the Holders of the Notes
and holders of the other Secured Debt Obligations; provided that to the
extent such consideration is received by EFIH in cash, it shall be held in an
Asset Sale Cash Collateral Account pending the application of such cash
consideration pursuant to this Section 4.10.

     

    (b) In
respect of Net Proceeds received by the Issuer or any Restricted Subsidiary from
Asset Sales (other than an Asset Sale of Collateral or other Oncor-related
Assets), within 450 days after the receipt of any Net Proceeds of any such
Asset Sale, the Issuer or such Restricted Subsidiary, at its option, may apply
the Net Proceeds from such Asset Sale,

     

    (1)           to
permanently reduce:

     

    (A)           Obligations
under Senior Indebtedness which is Secured Indebtedness permitted by this
Indenture, and to correspondingly reduce commitments with respect
thereto;

     

    (B)           Obligations
under other Senior Indebtedness (and to correspondingly reduce commitments with
respect thereto); provided that the
Issuer shall equally and ratably reduce Obligations under the Notes as provided
under Section 3.07 hereof, through open-market purchases (to the extent such
purchases are at or above 100% of the principal amount thereof) or otherwise by
making an offer (in accordance with the procedures set forth in Section 4.10(d)
hereof for an Asset Sale Offer) to all Holders to purchase their Notes at 100%
of the principal amount thereof, plus the amount of
accrued but unpaid interest, if any;

     

    (C)           
Obligations under any Existing Notes with a maturity prior to October 15, 2019;
provided that,
at the time of, and after giving effect to, such repurchase, redemption or
defeasance, the aggregate amount of Net Proceeds used to repurchase, redeem or
defease such Existing Notes pursuant to this subclause (C) following the Secured
Notes Issue Date shall not exceed 3.5% of Total Assets at such time;
or

     

    (D)           Indebtedness
of a Restricted Subsidiary that is not a Guarantor, other than Indebtedness owed
to the Issuer or another Restricted Subsidiary (or any Affiliate
thereof);

     

    provided that, if an offer to
purchase any Indebtedness of TCEH or any of its Restricted Subsidiaries is made
in accordance with the terms of such Indebtedness, the obligation to permanently
reduce Indebtedness of a Restricted Subsidiary shall be deemed to be satisfied
to the extent of the amount of the offer, whether or not accepted by the holders
thereof, and no Net Proceeds in the amount of such offer shall be deemed to
exist following such offer;

     

    (2)           to
make (A) an Investment in any one or more businesses; provided that such
Investment in any business is in the form of the acquisition of Capital Stock
and results in the Issuer or another of its Restricted Subsidiaries, as the case
may be, owning an amount of the Capital Stock of such business such that it
constitutes a Restricted Subsidiary, (B) capital expenditures or (C)
acquisitions of other assets, in each of (A), (B) and (C), used or useful in a
Similar Business; or

     

    (3)           to
make an Investment in (A) any one or more businesses; provided that such
Investment in any business is in the form of the acquisition of Capital Stock
and results in the Issuer or another of its Restricted Subsidiaries, as the case
may be, owning an amount of the Capital Stock of such business such that it
constitutes a Restricted Subsidiary, (B) properties or (C) acquisitions of
other assets that, in each of (A), (B) and (C), replace the businesses,
properties and/or assets that are the subject of such Asset Sale;

     

    
      	
               
      

            	
              provided that, in the case
      of clauses (2) and (3) above, a binding commitment shall be treated as a
      permitted application of the Net Proceeds from the date of such commitment
      so long as the Issuer, or such other Restricted Subsidiary enters into
      such commitment with the good faith expectation that such Net Proceeds
      shall be applied to satisfy such commitment within 180 days of such
      commitment (an “Acceptable
      Commitment”) (and reinvest within the later of 450 days from the
      date of receipt of Net Proceeds and 180 days of receipt of such
      commitment), and, in the event any Acceptable Commitment is later
      cancelled or terminated for any reason before the Net Proceeds are applied
      in connection therewith, the Issuer or such Restricted Subsidiary enters
      into another Acceptable Commitment (a “Second
      Commitment”) within the later of (a) 180 days of such
      cancellation or termination or (b) the initial 450-day period; provided further, that
      if any Second Commitment is later cancelled or terminated for any reason
      before such Net Proceeds are applied, then such Net Proceeds shall
      constitute Excess Proceeds.

            

    

     

    (c) Notwithstanding
Section 4.10(b) hereof, to the extent that regulatory approval is necessary for
an asset purchase or investment, or replacement, repair or restoration on any
asset or investment, then the Issuer or any Restricted Subsidiary shall have an
additional 365 days to apply the Net Proceeds from such Asset Sale in accordance
with Section 4.10(b) hereof.

     

    (d) Any Net
Proceeds from Asset Sales (other than Asset Sales of Collateral or other
Oncor-related Assets) that are not invested or applied as provided and within
the time period set forth in Section 4.10(b) hereof shall be deemed to
constitute “Excess
Proceeds.”  When the aggregate amount of Excess Proceeds
exceeds $200.0 million, the Issuer and/or any of its Restricted
Subsidiaries shall make an offer to all Holders of the Notes and, if required or
permitted by the terms of any Senior Indebtedness, to the holders of such Senior
Indebtedness (an “Asset Sale Offer”),
to purchase the maximum aggregate principal amount of the Notes and such Senior
Indebtedness that is a minimum of $2,000 or an integral multiple of $1,000 in
excess thereof that may be purchased out of the Excess Proceeds at an offer
price in cash in an amount equal to 100% of the principal amount thereof, plus
accrued and unpaid interest and Additional Interest, if any, to the date fixed
for the closing of such offer, in accordance with the procedures set forth in
this Indenture.  The Issuer and/or any of its Restricted Subsidiaries
shall commence an Asset Sale Offer with respect to Excess Proceeds within 10
Business Days after the date that Excess Proceeds exceed $200.0 million by
mailing the notice required pursuant to the terms of this Indenture, with a copy
to the Trustee.

     

    (e) To the
extent that the aggregate amount of Notes and such Senior Indebtedness tendered
pursuant to an Asset Sale Offer is less than the Excess Proceeds, the Issuer
and/or any of its Restricted Subsidiaries may use any remaining Excess Proceeds
for general corporate purposes, subject to other covenants contained in this
Indenture.  If the aggregate principal amount of Notes or the Senior
Indebtedness surrendered by such holders thereof exceeds the amount of Excess
Proceeds, the Notes and such Senior Indebtedness shall be purchased on a pro rata basis based on
the accreted value or principal amount of the Notes or such Senior Indebtedness
tendered.  Additionally, the Issuer and/or any of its Restricted
Subsidiaries may, at its/their option, make an Asset Sale Offer using proceeds
from any Asset Sale (other than Asset Sales of Collateral or other Oncor-related
Assets) at any time after consummation of such Asset Sale; provided that such Asset Sale
Offer shall be in an aggregate amount of not less than
$25.0 million.  Upon consummation of such Asset Sale Offer, any
Net Proceeds not required to be used to purchase Notes shall not be deemed
Excess Proceeds.

     

    (f) In
respect of Net Proceeds received by the Issuer or any Restricted Subsidiary
(including EFIH) from Asset Sales of Collateral or other Oncor-related Assets,
within 450 days after the receipt by the Issuer or any Restricted Subsidiary of
any Net Proceeds of any such Asset Sale, the Issuer or such Restricted
Subsidiary shall be required to deposit the Net Proceeds from such Asset Sale
into an Asset Sale Cash Collateral Account to be held solely for the purpose of
repayment of principal, premium, if any, and interest and Additional Interest,
if any, on, and/or to repay, prepay or repurchase, the Notes and other Parity
Lien Obligations as described in the following clauses (1) and (2),

     

    (1)           to
repay or prepay Parity Lien Debt (other than the Notes) (and, in the case of
revolving loans and other similar obligations, permanently reduce the commitment
thereunder) on a pro rata basis, but only
up to an aggregate principal amount equal to such Net Proceeds to be used to
repay Indebtedness pursuant to this clause (1) multiplied by a fraction, the
numerator of which is the aggregate outstanding principal amount of such Parity
Lien Debt and the denominator of which is the aggregate outstanding principal
amount of all Parity Lien Debt (including the Notes), in each case based on
amounts outstanding on the date of closing of such Asset Sale; provided that the
Issuer shall equally and ratably reduce Obligations under the Notes as provided
in Section 3.07 hereof, through open-market purchases (to the extent such
purchases are at or above 100% of the principal amount thereof) or by making an
offer (in accordance with the procedures set forth in Section 4.10(h) hereof for
a Collateral Asset Sale Offer) to all Holders to purchase their Notes at 100% of
the principal amount thereof plus the amount of accrued and unpaid interest, if
any; or

     

    (2)           to
repay or repurchase any EFIH Notes or other Parity Lien Debt of
EFIH.

     

    (g) Notwithstanding
Section 4.10(f) hereof, in the event that regulatory approval is necessary for
an Investment in any Oncor Subsidiary, then the Issuer or any Restricted
Subsidiary shall have an additional 365 days to apply the Net Proceeds from such
Asset Sale in accordance with Section 4.10(f) hereof.

     

    (h) Any Net
Proceeds from Asset Sales of Collateral or other Oncor-related Assets that are
not invested or applied as provided and within the time period set forth in
Section 4.10(f) hereof shall be deemed to constitute “Collateral Excess
Proceeds.”  When the aggregate amount of Collateral Excess
Proceeds exceeds $200.0 million, the Issuer and/or any of its Restricted
Subsidiaries shall make an offer to all Holders of the Notes and, if required or
permitted by the terms of any Parity Lien Debt, to the holders of such Parity
Lien Debt (a “Collateral Asset Sale
Offer”), to purchase the maximum aggregate principal amount of the Notes
and such Parity Lien Debt that is a minimum of $2,000 or an integral multiple of
$1,000 in excess thereof that may be purchased out of the Collateral Excess
Proceeds at an offer price in cash in an amount equal to 100% of the principal
amount thereof, plus accrued and unpaid interest and Additional Interest, if
any, to the date fixed for the closing of such offer, in accordance with the
procedures set forth in this Indenture.  The Issuer and/or any of its
Restricted Subsidiaries shall commence a Collateral Asset Sale Offer with
respect to Collateral Excess Proceeds within 10 Business Days after the date
that Collateral Excess Proceeds exceed $200.0 million by mailing the notice
required pursuant to the terms of this Indenture, with a copy to the
Trustee.

     

    (i) To the
extent that the aggregate amount of Notes and such Parity Lien Debt tendered
pursuant to a Collateral Asset Sale Offer is less than the Collateral Excess
Proceeds, the Issuer and/or any of its Restricted Subsidiaries may use any
remaining Collateral Excess Proceeds for general corporate purposes, subject to
other covenants contained in this Indenture and the terms of such Parity Lien
Debt.  If the aggregate principal amount of Notes or the Parity Lien
Debt surrendered by such holders thereof exceeds the amount of Collateral Excess
Proceeds, the Notes and such Parity Lien Debt shall be purchased on a pro rata basis based on
the accreted value or principal amount of the Notes or such Parity Lien Debt
tendered.  Additionally, the Issuer and/or any of its Restricted
Subsidiaries may, at its/their option, make a Collateral Asset Sale Offer using
proceeds from any Asset Sale of Collateral or other Oncor-related Assets at any
time after consummation of such Asset Sale; provided that such
Collateral Asset Sale Offer shall be in an aggregate amount of not less than
$25.0 million.  Upon consummation of such Collateral Asset Sale Offer,
any Net Proceeds not required to be used to purchase Notes shall not be deemed
Collateral Excess Proceeds and the Issuer and its Restricted Subsidiaries may
use any remaining Net Proceeds for general corporate purposes, subject to the
other covenants contained in this Indenture.

     

    (j) Pending
the final application of any Net Proceeds pursuant to this Section 4.10, the
holder of such Net Proceeds may apply such Net Proceeds temporarily to reduce
Indebtedness outstanding under a revolving credit facility or otherwise invest
such Net Proceeds in any manner not prohibited by this Indenture; provided, however, that any Net
Proceeds that represent proceeds of Collateral or other Oncor-related Assets
shall be deposited and held in an Asset Sale Cash Collateral Account pending
final application thereof in accordance with this Section 4.10.  For
the avoidance of doubt, “final application” of Net Proceeds that represent
proceeds from the sale of Collateral or other Oncor-related Assets includes,
without limitation, the consummation of a Collateral Asset Sale
Offer.

     

    (k) The
Issuer shall comply with the requirements of Rule 14e-1 under the Exchange Act
and any other securities laws and regulations thereunder to the extent such laws
or regulations are applicable in connection with the repurchase of the Notes
pursuant to an Asset Sale Offer or a Collateral Asset Sale Offer.  To
the extent that the provisions of any securities laws or regulations conflict
with the provisions of this Indenture, the Issuer shall comply with the
applicable securities laws and regulations and shall not be deemed to have
breached its obligations described in this Indenture by virtue
thereof.

     

    Section
4.11 Transactions with
Affiliates

     

    
      	
              .

            

    

     

    (a)           The
Issuer shall not, and shall not permit any of its Restricted Subsidiaries to,
make any payment to, or sell, lease, transfer or otherwise dispose of any of its
properties or assets to, or purchase any property or assets from, or enter into
or make or amend any transaction, contract, agreement, understanding, loan,
advance or guarantee with, or for the benefit of, any Affiliate of the Issuer
(each of the foregoing, an “Affiliate
Transaction”) involving aggregate payments or consideration in excess of
$25.0 million, unless:

     

    (1)           such
Affiliate Transaction is on terms that are not materially less favorable to the
Issuer or its relevant Restricted Subsidiary than those that would have been
obtained in a comparable transaction by the Issuer or such Restricted Subsidiary
with an unrelated Person on an arm’s-length basis; and

     

    (2)           the
Issuer delivers to the Trustee with respect to any Affiliate Transaction or
series of related Affiliate Transactions involving aggregate payments or
consideration in excess of $50.0 million, a resolution adopted by the
majority of the Board of Directors of the Issuer approving such Affiliate
Transaction and set forth in an Officer’s Certificate certifying that such
Affiliate Transaction complies with clause (1) of this Section
4.11(a).

     

    (b)           The
provisions of Section 4.11(a) hereof shall not apply to the
following:

     

    (1)           transactions
between or among the Issuer or any of its Restricted Subsidiaries or between or
among the Issuer, any of its Restricted Subsidiaries and the Oncor Subsidiaries
in the ordinary course of business;

     

    (2)           Restricted
Payments permitted by Section 4.07 hereof and the definition of “Permitted
Investments” or to any Permitted Asset Transfer made in accordance with Section
4.16 hereof to the extent agreements with respect to which contain reasonable
and customary provisions (as determined by the Issuer in good
faith);

     

    (3)           the
payment of management, consulting, monitoring and advisory fees and related
expenses to the Investors pursuant to the Sponsor Management Agreement (plus any
unpaid management, consulting, monitoring and advisory fees and related expenses
accrued in any prior year) and the termination fees pursuant to the Sponsor
Management Agreement, in each case as in effect on the Issue Date, or any
amendment thereto (so long as any such amendment is not disadvantageous in the
good faith judgment of the Board of Directors of the Issuer to the Holders when
taken as a whole as compared to the Sponsor Management Agreement in effect on
the Issue Date);

     

    (4)           the
payment of reasonable and customary fees paid to, and indemnities provided for
the benefit of, officers, directors, employees or consultants of the Issuer, any
of its direct or indirect parent companies or any of its Restricted
Subsidiaries;

     

    (5)           transactions
in which the Issuer or any of its Restricted Subsidiaries, as the case may be,
delivers to the Trustee a letter from an Independent Financial Advisor stating
that such transaction is fair to the Issuer or such Restricted Subsidiary from a
financial point of view or stating that the terms are not materially less
favorable to the Issuer or its relevant Restricted Subsidiary than those that
would have been obtained in a comparable transaction by the Issuer or such
Restricted Subsidiary with an unrelated Person on an arm’s-length
basis;

     

    (6)           any
agreement as in effect as of the Issue Date, or any amendment thereto (so long
as any such amendment is not disadvantageous to the Holders when taken as a
whole as compared to the applicable agreement as in effect on the Issue
Date);

     

    (7)           the
existence of, or the performance by the Issuer or any of its Restricted
Subsidiaries of its obligations under the terms of, any stockholders agreement
(including any registration rights agreement or purchase agreement related
thereto) to which it is a party as of the Issue Date and any similar agreements
which it may enter into thereafter; provided, however, that the
existence of, or the performance by the Issuer or any of its Restricted
Subsidiaries of obligations under any future amendment to any such existing
agreement or under any similar agreement entered into after the Issue Date shall
only be permitted by this clause (7) to the extent that the terms of any such
amendment or new agreement are not otherwise disadvantageous to the Holders when
taken as a whole;

     

    (8)           the
Transactions (including payments made after the Closing Date in respect of the
Issuer’s and its Subsidiaries’ long-term incentive plan or in respect of tax
gross-ups and other deferred compensation) and the payment of all
fees and expenses related to the Transactions;

     

    (9)           transactions
with customers, clients, suppliers, or purchasers or sellers of goods or
services, in each case in the ordinary course of business and otherwise in
compliance with the terms of this Indenture which are fair to the Issuer and its
Restricted Subsidiaries, in the reasonable determination of the Board of
Directors of the Issuer or the senior management thereof, or are on terms at
least as favorable as might reasonably have been obtained at such time from an
unaffiliated party;

     

    (10)           the
issuance of Equity Interests (other than Disqualified Stock) of the Issuer to
any Permitted Holder or to any director, officer, employee or
consultant;

     

    (11)           sales
of accounts receivable, or participations therein, in connection with any
Receivables Facility for the benefit of the Issuer or any of its Restricted
Subsidiaries;

     

    (12)           payments
by the Issuer or any of its Restricted Subsidiaries to any of the Investors made
for any financial advisory, financing, underwriting or placement services or in
respect of other investment banking activities, including, without limitation,
in connection with acquisitions or divestitures, which payments are approved by
a majority of the Board of Directors of the Issuer in good faith;

     

    (13)           payments
or loans (or cancellation of loans) to employees or consultants of the Issuer,
any of its direct or indirect parent companies or any of its Restricted
Subsidiaries and employment agreements, stock option plans and other similar
arrangements with such employees or consultants which, in each case, are
approved by the Issuer in good faith;

     

    (14)           investments
by the Investors in securities of the Issuer or any of its Restricted
Subsidiaries so long as (i) the investment is being offered generally to
other investors on the same or more favorable terms and (ii) the investment
constitutes less than 5% of the proposed or outstanding issue amount of such
class of securities; and

     

    (15)           payments
by the Issuer (and any direct or indirect parent thereof) and its Subsidiaries
pursuant to tax sharing agreements among the Issuer (and any such parent) and
its Subsidiaries on customary terms to the extent attributable to the ownership
or operation of the Issuer and its Subsidiaries; provided that in each
case the amount of such payments in any fiscal year does not exceed the amount
that the Issuer, its Restricted Subsidiaries and its Unrestricted Subsidiaries
(to the extent of amounts received from Unrestricted Subsidiaries) would be
required to pay in respect of foreign, federal, state and local taxes for such
fiscal year were the Issuer and its Subsidiaries (to the extent described above)
to pay such taxes separately from any such parent entity.

     

    Section
4.12 Liens

     

    
      	
              .

            

    

     

    (a) The
Issuer shall not, and shall not permit any Guarantor that is a Restricted
Subsidiary to, directly or indirectly, create, incur, assume or suffer to exist
any Lien (except Permitted Liens) that secures obligations under any
Indebtedness or any related guarantee, on any asset or property of the Issuer or
any Guarantor that is a Restricted Subsidiary, or any income or profits
therefrom, or assign or convey any right to receive income therefrom,
unless:

     

    (1)           in
the case of Liens securing Subordinated Indebtedness, the Notes and any related
Guarantees are secured by a Lien on such property, assets or proceeds that is
senior in priority to such Liens; or

     

    (2)           in
all other cases, the Notes or any Guarantees are equally and ratably secured or
are secured by a Lien on such property, assets or proceeds that is senior in
priority to such Liens;

     

    
      	
              except
      that the foregoing shall not apply to (a) Liens securing Indebtedness
      permitted to be incurred pursuant to clause (2) of Section 4.09(b) hereof;
      provided
      that the Notes or any related Guarantee are secured on at least an equal
      and ratable basis as such Indebtedness, (b) Liens securing Indebtedness
      permitted to be incurred under Credit Facilities, including any letter of
      credit relating thereto, that was permitted by the terms of this Indenture
      to be incurred pursuant to clause (1) of Section 4.09(b) hereof and (c)
      Liens incurred to secure Obligations in respect of any Indebtedness
      permitted to be incurred pursuant to Section 4.09 hereof; provided that,
      with respect to Liens securing Obligations permitted under this clause
      (c), at the time of incurrence and after giving pro forma effect
      thereto, the Consolidated Secured Debt Ratio for the most recently ended
      four full fiscal quarters for which internal financial statements are
      available immediately preceding the date on which such event for which
      such calculation is being made shall occur would be no greater than 5.0 to
      1.0.  Any Lien which is granted to secure the Notes under this
      Section 4.12 shall be discharged at the same time as the discharge of the
      Lien (other than through the exercise of remedies with respect thereto)
      that gave rise to the obligation to so secure the
  Notes.

            

    

     

    (b) Notwithstanding
Section 4.12(a) hereof, the Issuer shall not, and shall not permit EFIH to,
directly or indirectly, create, incur, assume or suffer to exist any Lien on the
Collateral (other than a Permitted Lien described under clause (3) of the
definition of “Permitted Liens”), or any income or profits therefrom, or assign
or convey any right to receive income therefrom except:

     

    
      	
              (1)

            	
              Liens
      on the Collateral securing up to $4.0 billion in aggregate principal
      amount of Parity Lien Debt (including the Notes, Additional Notes,
      Exchange Notes and the 9.75% Notes, any additional 9.75% Notes, the EFIH
      Notes and any additional EFIH Notes and any guarantees of any of the
      foregoing and/or other Indebtedness incurred pursuant to Section 4.09
      hereof); provided that
      such amount shall be reduced by an amount equal to the amount of Parity
      Lien Debt repaid using the Net Proceeds from Asset Sales of Collateral or
      other Oncor-related Assets in accordance with Section 4.10 hereof;
      and

            

    

     

    
      	
              (2)

            	
              Junior
      Liens on the Collateral securing Junior Lien Debt permitted to be incurred
      pursuant to Section 4.09 hereof.

            

    

     

    Section
4.13 Corporate
Existence

     

    
      	
              .

            

    

     

    Subject
to Article 5 hereof, the Issuer shall do or cause to be done all things
necessary to preserve and keep in full force and effect (i) its corporate
existence, and the corporate, partnership or other existence of each of its
Restricted Subsidiaries, in accordance with the respective organizational
documents (as the same may be amended from time to time) of the Issuer or any
such Restricted Subsidiary and (ii) the rights (charter and statutory), licenses
and franchises of the Issuer and its Restricted Subsidiaries; provided that the
Issuer shall not be required to preserve any such right, license or franchise,
or the corporate, partnership or other existence of any of its Restricted
Subsidiaries, if the Issuer in good faith shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Issuer and
its Restricted Subsidiaries, taken as a whole.

     

    Section
4.14 Offer to Repurchase upon
Change of Control

     

    
      	
              .

            

    

     

    (a) If a
Change of Control occurs, unless the Issuer has previously or concurrently
mailed a redemption notice with respect to all the outstanding Notes as
described under Section 3.07 hereof and shall redeem all of the outstanding
Notes pursuant thereto, the Issuer shall make an offer to purchase all of the
Notes pursuant to the offer described below (the “Change of Control
Offer”) at a price in cash (the “Change of Control
Payment”) equal to 101% of the aggregate principal amount thereof plus accrued and
unpaid interest and Additional Interest, if any, to the date of purchase,
subject to the right of Holders of the Notes of record on the relevant Record
Date to receive interest due on the relevant Interest Payment
Date.  Within 30 days following any Change of Control, the Issuer
shall send notice of such Change of Control Offer by first-class mail, with a
copy to the Trustee, to each Holder of Notes to the address of such Holder
appearing in the security register with a copy to the Trustee or otherwise in
accordance with the procedures of DTC, with the following
information:

     

    (1) that a
Change of Control Offer is being made pursuant to this Section 4.14 and
that all Notes properly tendered pursuant to such Change of Control Offer shall
be accepted for payment by the Issuer;

     

    (2) the
purchase price and the purchase date, which shall be no earlier than 30 days nor
later than 60 days from the date such notice is mailed (the “Change of Control Payment
Date”);

     

    (3) that any
Note not properly tendered shall remain outstanding and continue to accrue
interest;

     

    (4) that
unless the Issuer defaults in the payment of the Change of Control Payment, all
Notes accepted for payment pursuant to the Change of Control Offer shall cease
to accrue interest on the Change of Control Payment Date;

     

    (5) that
Holders electing to have any Notes purchased pursuant to a Change of Control
Offer shall be required to surrender such Notes, with the form entitled “Option
of Holder to Elect Purchase” on the reverse of such Notes completed, to the
Paying Agent specified in the notice at the address specified in the notice
prior to the close of business on the third Business Day preceding the Change of
Control Payment Date;

     

    (6) that
Holders shall be entitled to withdraw their tendered Notes and their election to
require the Issuer to purchase such Notes; provided that the
Paying Agent receives, not later than the close of business on the expiration
date of the Change of Control Offer, a telegram, facsimile transmission or
letter setting forth the name of the Holder of the Notes, the principal amount
of Notes tendered for purchase, and a statement that such Holder is withdrawing
its tendered Notes and its election to have such Notes purchased;

     

    (7) that the
Holders whose Notes are being repurchased only in part shall be issued new Notes
and such new Notes shall be equal in principal amount to the unpurchased portion
of the Notes surrendered.  The unpurchased portion of the Notes must
be equal to $2,000 or an integral multiple of $1,000 in excess thereof;
and

     

    (8) the other
instructions, as determined by the Issuer, consistent with this
Section 4.14, that a Holder must follow.

     

    The
notice, if mailed in a manner herein provided, shall be conclusively presumed to
have been given, whether or not the Holder receives such notice.  If
(a) notice is mailed in a manner herein provided and (b) any Holder fails to
receive such notice or a Holder receives such notice but it is defective, such
Holder’s failure to receive such notice or such defect shall not affect the
validity of the proceedings for the purchase of the Notes as to all other
Holders that properly received such notice without defect.  The Issuer
shall comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent such laws or
regulations are applicable in connection with the repurchase of Notes pursuant
to a Change of Control Offer.  To the extent that the provisions of
any securities laws or regulations conflict with the provisions of this
Section 4.14, the Issuer shall comply with the applicable securities laws
and regulations and shall not be deemed to have breached its obligations under
this Section 4.14 by virtue thereof.

     

    Any
proceeds received by the Issuer or its Restricted Subsidiaries from a sale,
conveyance or disposition of Collateral or other Oncor-related Assets that
constitutes a Change of Control shall be subject to a perfected security
interest for the benefit of the holders of the Secured Debt Obligations until
consummation of the Change of Control Offer pursuant to this Section
4.14.

     

    (b) On the
Change of Control Payment Date, the Issuer shall, to the extent permitted by
law,

     

    (1) accept
for payment all Notes issued by it or portions thereof properly tendered
pursuant to the Change of Control Offer;

     

    (2) deposit
with the Paying Agent an amount equal to the aggregate Change of Control Payment
in respect of all Notes or portions thereof so tendered; and

     

    (3) deliver,
or cause to be delivered, to the Trustee for cancellation the Notes so accepted
together with an Officer’s Certificate to the Trustee stating that such Notes or
portions thereof have been tendered to and purchased by the Issuer.

     

    (c) The
Paying Agent shall promptly mail to each Holder the Change of Control Payment
for such Notes, and the Trustee shall promptly authenticate and mail (or cause
to be transferred by book entry) to each Holder a new Note equal in principal
amount to any unpurchased portion of the Notes surrendered, if any; provided that each
such new Note shall be in a principal amount of $2,000 or an integral multiple
of $1,000 in excess thereof.

     

    (d) The
Issuer shall not be required to make a Change of Control Offer following a
Change of Control if a third party makes the Change of Control Offer in the
manner, at the times and otherwise in compliance with the requirements set forth
in this Section 4.14 applicable to a Change of Control Offer made by the
Issuer and purchases all Notes validly tendered and not withdrawn under such
Change of Control Offer.  Notwithstanding anything to the contrary
herein, a Change of Control Offer may be made in advance of a Change of Control,
conditional upon such Change of Control, if a definitive agreement is in place
for the Change of Control at the time of making of the Change of Control
Offer.

     

    (e) Other
than as specifically provided in this Section 4.14, any purchase pursuant
to this Section 4.14 shall be made pursuant to the provisions of Sections
3.02, 3.05 and 3.06 hereof.

     

    Section
4.15 Limitation on Guarantees of
Indebtedness by Restricted Subsidiaries

     

    

     

    The
Issuer shall not permit any of its Wholly-Owned Subsidiaries that are Restricted
Subsidiaries (and non-Wholly-Owned Subsidiaries if such non-Wholly-Owned
Subsidiaries guarantee other capital markets debt securities of the Issuer or
any Guarantor), other than a Guarantor, a Foreign Subsidiary or a Receivables
Subsidiary, to guarantee the payment of any Indebtedness of the Issuer
unless:

     

    (1)           such
Restricted Subsidiary within 30 days executes and delivers a supplemental
indenture to this Indenture, the form of which is attached as Exhibit D hereto,
providing for a Guarantee by such Restricted Subsidiary, except that with
respect to a guarantee of Indebtedness of the Issuer:

     

    (a)           if
the Notes or such Guarantor’s Guarantee is subordinated in right of payment to
such Indebtedness, the Guarantee under the supplemental indenture shall be
subordinated to such Restricted Subsidiary’s guarantee with respect to such
Indebtedness substantially to the same extent as the Notes are subordinated to
such Indebtedness; and

     

    (b)           if
such Indebtedness is by its express terms subordinated in right of payment to
the Notes, any such guarantee by such Restricted Subsidiary with respect to such
Indebtedness shall be subordinated in right of payment to such Guarantee
substantially to the same extent as such Indebtedness is subordinated to the
Notes; and

     

    (2)           such
Restricted Subsidiary waives, and shall not in any manner whatsoever claim or
take the benefit or advantage of, any rights of reimbursement, indemnity or
subrogation or any other rights against the Issuer or any other Restricted
Subsidiary as a result of any payment by such Restricted Subsidiary under its
Guarantee;

     

    provided that this
Section 4.15 shall not be applicable to any guarantee of any Restricted
Subsidiary that existed at the time such Person became a Restricted Subsidiary
and was not incurred in connection with, or in contemplation of, such Person
becoming a Restricted Subsidiary.

     

    Section
4.16 Restrictions on Permitted
Asset Transfers

     

    (a) The
Issuer shall not, and shall not permit any of its Restricted Subsidiaries to,
consummate a Permitted Asset Transfer unless:

     

    (1) in the
case of a Permitted Asset Transfer described in clause (2) of the definition of
“Permitted Asset Transfer” or a Permitted Asset Transfer described in clause (1)
of the definition of “Permitted Asset Transfer” by way of merger, wind-up or
consolidation, the Person to which such sale, assignment, transfer, conveyance
or other disposition of all of the Equity Interests of, and other Investments
in, any Oncor Subsidiary and all other Collateral held by EFIH has been made is
a corporation organized or existing under the laws of the United States, any
state of the United States, the District of Columbia or any territory thereof
(such Person being herein called the “Successor EFIH
Company”); provided that the
Successor EFIH Company may not be an Oncor Subsidiary;

     

    (2) the
Successor EFIH Company or, in the case of a Permitted Asset Transfer described
in clause (1) of the definition of “Permitted Asset Transfer,” EFIH and, to the
extent the Successor EFIH Company is not a corporation, a Subsidiary of EFIH or
the Successor EFIH Company, as the case may be, that is a co-obligor and a
corporation organized or existing under the laws of the United States, any state
of the United States, the District of Columbia or any territory thereof, has
assumed all the obligations of the Issuer and EFIH under (i) the Notes and this
Indenture (except in the case of a Permitted Asset Transfer consisting of a
merger of EFIH with and into the Issuer, pursuant to a supplemental indenture to
this Indenture, substantially in the form attached as Exhibit E hereto (the
“Permitted Transfer
Supplemental Indenture”)), the Security Documents to which the Issuer or
EFIH is a party pursuant to agreements, in each case, reasonably satisfactory to
the Trustee and the Collateral Trustee and (ii) the Registration Rights
Agreement;

     

    (3) immediately
after such transaction no Default exists;

     

    (4) immediately
after giving pro forma effect to such
transaction and any related financing transactions (including, without
limitation, any transaction the proceeds of which are applied to reduce the
Indebtedness of the Successor EFIH Company or EFIH, as the case may be) as if
the same had occurred at the beginning of the applicable four-quarter period,
either:

     

    
      	
               
      

            	
              (a)

            	
              the
      Successor EFIH Company, or EFIH, as the case may be, would be permitted to
      incur at least $1.00 of additional Indebtedness pursuant to the fixed
      charge coverage ratio test set forth in the Permitted Transfer
      Supplemental Indenture; or

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      fixed charge coverage ratio (as defined in the Permitted Transfer
      Supplemental Indenture) for the Successor EFIH Company and its Restricted
      Subsidiaries or EFIH and its Restricted Subsidiaries, as the case may be,
      would be greater than such fixed charge coverage ratio for the Issuer and
      its Restricted Subsidiaries immediately prior to such
      transaction;

            

    

     

    (5) except in
the case of a Permitted Asset Transfer consisting of a merger of EFIH with and
into the Issuer, the rating on the Notes shall not have been downgraded by two
or more of the Rating Agencies (or, if the Notes are rated by only one Rating
Agency at the time of the first notice of such Permitted Asset Transfer, such
Rating Agency) during the period commencing 30 days prior to the first public
notice of the occurrence of a Permitted Asset Transfer or the intention of the
Issuer or any Subsidiary thereof to effect a Permitted Asset Transfer and ending
on the date 60 days after such public notice relative to the rating at the start
of such period; and

     

    (6) the
Issuer shall have delivered to the Trustee an Opinion of Counsel confirming
that, subject to customary assumptions, exclusions and qualifications, the
existing Security Documents, or to the extent that a Permitted Asset Transfer
pursuant to clause (1) of the definition of “Permitted Asset Transfer” by way of
merger, wind-up or consolidation or pursuant to clause (2) of the definition of
“Permitted Asset Transfer” is being consummated, any new or amended Security
Documents to be entered into by the Successor EFIH Company, are enforceable
obligations of EFIH or the Successor EFIH Company, as the case may be, create a
legally valid and enforceable security interest in the Collateral in favor of
the Collateral Trustee for the benefit of the Holders of the Notes and the other
Secured Debt Obligations, and that the security interests in the Collateral
created by the Security Documents have been perfected.

     

    (b) Notwithstanding
Section 4.16(a) hereof, the provisions of this Section 4.16 shall not apply to a
sale, assignment, transfer, conveyance or other disposition of assets between or
among the Oncor Subsidiaries.

     

    (c) Notwithstanding
Section 4.16(a) hereof, the successor entity formed by any merger of EFIH with
and into the Issuer that is permitted by this Indenture shall not be permitted
to effect a Permitted Asset Transfer described in clause (1) of the definition
of Permitted Asset Transfer.

     

    Section
4.17 Restrictions on TCEH
Transfers

     

    The Issuer shall not, and shall not
permit any of its Restricted Subsidiaries to, consummate a TCEH Transfer
unless:

     

    (a) the
Issuer and the Trustee enter into a supplemental indenture to this Indenture,
substantially in the form attached as Exhibit F hereto (the
“TCEH Transfer
Supplemental Indenture”), that shall become operative at the time of
consummation of such TCEH Transfer;

     

    (b) immediately
after such transaction no Default exists;

     

    (c) immediately
after giving pro forma effect to such
transaction and any related financing transactions (including, without
limitation, any transaction the proceeds of which are applied to reduce the
Indebtedness of the Issuer) as if the same had occurred at the beginning of the
applicable four-quarter period, either:

     

    (1) the
Issuer would be permitted to incur at least $1.00 of additional Indebtedness
pursuant to the fixed charge coverage ratio test set forth in the TCEH Transfer
Supplemental Indenture; or

     

    (2) the fixed
charge coverage ratio (as defined in the TCEH Transfer Supplemental Indenture)
for the Issuer and its Restricted Subsidiaries would be greater than such fixed
charge coverage ratio for the Issuer and its Restricted Subsidiaries immediately
prior to such transaction; and

     

    (d) the
rating on the Notes shall not have been downgraded by two or more of the Rating
Agencies (or, if the Notes are rated by only one Rating Agencies at the time of
the first notice of such TCEH Transfer, such Rating Agency) during the period
commencing 30 days prior to the first public notice of the occurrence of a TCEH
Transfer or the intention of the Issuer or any Subsidiary thereof to effect a
TCEH Transfer and ending on the date 60 days after such public notice relative
to the rating at the start of such period.

     

    Section
4.18 Restrictions on Certain
Investments in Oncor Subsidiaries and the Collateral

     

    (a)           The
Issuer shall not, and shall not permit any Restricted Subsidiary (other than
EFIH) to, hold any Equity Interests in, or Indebtedness of, or other Investments
in, any of the Oncor Subsidiaries or any Successor Oncor Business or any other
Collateral, except the Issuer may hold such Equity Interests, Indebtedness and
other Investments following a merger of EFIH with and into the Issuer which is a
Permitted Asset Transfer made in accordance with Section 4.16
hereof.

     

    (b)           The
Issuer shall not permit any Unrestricted Subsidiary to hold any Equity Interests
in, or Indebtedness of, or other Investments in, EFIH, and shall not permit any
Unrestricted Subsidiary to hold any Equity Interests in, or Indebtedness of, or
other Investments in, any of the Oncor Subsidiaries or any Successor Oncor
Business; provided that an
Oncor Subsidiary may hold Equity Interests in, or Indebtedness of, or other
Investments in, another Oncor Subsidiary and a Successor Oncor Business may hold
Equity Interests in, Indebtedness of, or other Investments in, another Successor
Oncor Business.

     

    (c)           The
Issuer shall not permit any of its Unrestricted Subsidiaries to accept any
Investment from any Oncor Subsidiary or any Successor Oncor Business; provided that an
Oncor Subsidiary may accept an Investment from another Oncor Subsidiary and a
Successor Oncor Business may accept an Investment from another Successor Oncor
Business.

     

    (d)           EFIH
shall not sell, assign, transfer, convey or otherwise dispose of any Collateral,
including any consideration (other than cash and Cash Equivalents) received by
EFIH in an Asset Sale, including in respect of a Permitted Asset Swap of
Collateral, except in connection with a Permitted Asset Transfer that satisfies
the requirements of Section 4.16 hereof or pursuant to an Asset Sale that
complies with the provisions of Section 4.10 hereof pertaining to an Asset Sale
of Collateral.

     

    Section
4.19 After-Acquired
Property

     

    Promptly following the acquisition by
EFIH of any Equity Interests in any Oncor Subsidiary or any Indebtedness of, or
other Investments in, any Oncor Subsidiary or any property or assets required to
be pledged as Collateral pursuant to Section 4.10 hereof or any Equity Interests
in or any Indebtedness of, or other Investments in, any Successor Oncor
Business, EFIH shall execute and deliver such security instruments, pledges,
financing statements and certificates and opinions of counsel as shall be
reasonably necessary to vest in the Collateral Trustee a perfected
first-priority security interest in such Equity Interests, Indebtedness or other
Investments or property or assets and to have such Equity Interests,
Indebtedness or other Investments or property or assets added to the Collateral
and thereupon all provisions of this Indenture relating to the Collateral shall
be deemed to relate to such Equity Interests, Indebtedness or other Investments
or property or assets to the same extent and with the same force and
effect.

    

    Section
4.20 Impairment of Security
Interest

     

    (a) EFIH
shall not grant to any Person, or permit any Person to retain (other than the
Collateral Trustee), any interest whatsoever in the Collateral, other than
pursuant to clause (3) of the definition of “Permitted Liens.”

     

    (b) The
Issuer and its Restricted Subsidiaries (including EFIH) shall not enter into any
agreement that requires the proceeds received from any sale of Collateral to be
applied to repay, redeem, defease or otherwise acquire or retire any
Indebtedness of any Person, other than as permitted by this Indenture, the Notes
or the Security Documents.

     

    (c) EFIH
shall, at its sole cost and expense, execute and deliver all such agreements and
instruments as necessary, or as the Trustee shall reasonably request, to more
fully or accurately describe the assets and property intended to be Collateral
or the obligations intended to be secured by the Pledge Agreement or any other
Security Document.

     

    Section
4.21 Further
Assurances

     

    (a) EFIH, at
its own expense, shall do or cause to be done all acts and things that may be
required, or that the Collateral Trustee from time to time may reasonably
request, to assure and confirm that the Collateral Trustee holds, for the
benefit of the Secured Debt Representatives and holders of Secured Debt
Obligations, duly created and enforceable and perfected Liens upon the
Collateral (including any property or assets that are acquired or otherwise
become Collateral after the Notes are issued), in each case, as contemplated by,
and with the Lien priority required under, the Secured Debt
Documents.

     

    (b) Upon the
reasonable request of the Collateral Trustee or any Secured Debt Representative
at any time and from time to time, EFIH, at its own expense, shall promptly
execute, acknowledge and deliver such security documents, instruments,
certificates, notices and other documents, and take such other actions as may be
reasonably required, or that the Collateral Trustee may reasonably request, to
create, perfect, protect, assure or enforce the Liens and benefits intended to
be conferred, in each case as contemplated by the Secured Debt Documents for the
benefit of the holders of Secured Debt Obligations.

     

    ARTICLE
5

     

    

     

    SUCCESSORS

     

    Section
5.01 Merger, Consolidation, or
Sale of All or Substantially All Assets

     

    
      	
              .

            

    

     

    (a) The
Issuer shall not consolidate or merge with or into or wind up into (whether or
not the Issuer is the surviving corporation), or sell, assign, transfer, lease,
convey or otherwise dispose of all or substantially all of its properties or
assets, in one or more related transactions, to any Person unless:

     

    (1)           the
Issuer is the surviving corporation or the Person formed by or surviving any
such consolidation, wind-up or merger (if other than the Issuer) or to which
such sale, assignment, transfer, lease, conveyance or other disposition shall
have been made is a corporation organized or existing under the laws of the
jurisdiction of organization of the Issuer or the laws of the United States, any
state thereof, the District of Columbia, or any territory thereof (such Person,
as the case may be, being herein called the “Successor
Company”);

     

    (2)           the
Successor Company, if other than the Issuer, expressly assumes (i) all the
obligations of the Issuer under the Notes, this Indenture and the Security
Documents, to the extent the Issuer is a party thereto, pursuant to a
supplemental indenture or other document or instrument in form reasonably
satisfactory to the Trustee and (ii) the Registration Rights
Agreement;

     

    (3)           immediately
after such transaction, no Default exists;

     

    (4)           immediately
after giving pro forma effect to such
transaction and any related financing transactions (including, without
limitation, any transaction the proceeds of which are applied to reduce the
Indebtedness of the Successor Company or the Issuer, as the case may be), as if
such transactions had occurred at the beginning of the applicable four-quarter
period,

     

    (A)           the
Successor Company would be permitted to incur at least $1.00 of additional
Indebtedness pursuant to clause (i) of the Fixed Charge Coverage Ratio test set
forth in Section 4.09(a) hereof, or

     

    (B)           such
Fixed Charge Coverage Ratio for the Successor Company and its Restricted
Subsidiaries would be greater than such ratio for the Issuer and its Restricted
Subsidiaries immediately prior to such transaction;

     

    (5)           each
Guarantor, unless it is the other party to the transactions described above, in
which case clause (1)(B) of Section 5.01(d) hereof shall apply, shall have by a
supplemental indenture confirmed that its Guarantee and any Security Documents
to which it is a party shall apply to such Person’s obligations under this
Indenture, the Notes and the Registration Rights Agreement; and

     

    (6)           the
Issuer shall have delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each stating that such consolidation, wind-up, merger or
transfer and such supplemental indenture, if any, comply with this Indenture
and, if a supplemental indenture is required in connection with such
transaction, such supplemental indenture shall comply with the applicable
provisions of this Indenture;

     

    provided, that for
the purposes of this Section 5.01 only, neither (A) the first to occur of a
Permitted Asset Transfer or a TCEH Transfer (excluding a Permitted Asset
Transfer consisting of a merger of EFIH with and into the Issuer for the purpose
of determining the first to occur of a Permitted Asset Transfer or a TCEH
Transfer) nor (B) a transaction meeting the requirements of the proviso to
clause (3) under the definition of “Change of Control” shall be deemed to be a
sale, assignment, transfer, conveyance or other disposition of all or
substantially all of the properties or assets of the Issuer and its Subsidiaries
under this Indenture.  For the avoidance of doubt, (1) the Issuer may
therefore consummate the first to occur of a Permitted Asset Transfer made in
accordance with Section 4.16 hereof and a TCEH Transfer made in accordance with
Section 4.17 hereof, in either case, without complying with this Section 5.01
(excluding a Permitted Asset Transfer consisting of a merger of EFIH with and
into the Issuer for the purpose of determining the first to occur of a Permitted
Asset Transfer or a TCEH Transfer), (2) the Issuer or any of its Restricted
Subsidiaries may consummate a transaction meeting the requirements of the
proviso to clause (3) under the definition of “Change of Control” without
complying with this Section 5.01 and (3) the determination in the preceding
proviso shall not affect the determination of what constitutes all or
substantially all the assets of the Issuer and its Subsidiaries under any other
agreement to which the Issuer is a party.

    

    (b) Notwithstanding
clauses (3) and (4) of Section 5.01(a) hereof,

     

    (1)           any
Restricted Subsidiary (other than EFIH) may consolidate with or merge into or
transfer all or part of its properties and assets to the Issuer,
and

     

    (2)           the
Issuer may merge with an Affiliate of the Issuer solely for the purpose of
reincorporating the Issuer in a State of the United States, the District of
Columbia or any territory thereof so long as the amount of Indebtedness of the
Issuer and its Restricted Subsidiaries is not increased thereby.

     

    (c) Notwithstanding
the foregoing, EFIH may merge with and into the Issuer in a Permitted Asset
Transfer made in accordance with Section 4.16 hereof.

     

    (d) Except in
the case of a Permitted Asset Transfer made in accordance with Section 4.16
hereof, no Guarantor shall, and the Issuer shall not permit any Guarantor to,
consolidate or merge with or into or wind up into (whether or not the Issuer or
the Guarantor is the surviving corporation), or sell, assign, transfer, lease,
convey or otherwise dispose of all or substantially all of its properties or
assets, in one or more related transactions, to any Person unless:

     

    (1)           (A)  such
Guarantor is the surviving corporation or the Person formed by or surviving any
such consolidation, wind-up or merger (if other than such Guarantor) or to which
such sale, assignment, transfer, lease, conveyance or other disposition shall
have been made is a corporation, partnership, limited partnership, limited
liability corporation or trust organized or existing under the laws of the
jurisdiction of organization of such Guarantor, as the case may be, or the laws
of the United States, any state thereof, the District of Columbia, or any
territory thereof (such Guarantor or such Person, as the case may be, being
herein called the “Successor
Person”);

     

    (B)           the
Successor Person, if other than such Guarantor, expressly assumes all the
obligations of such Guarantor under this Indenture and such Guarantor’s related
Guarantee and any Security Documents to which such Guarantor is a party pursuant
to supplemental indentures or other documents or instruments in form reasonably
satisfactory to the Trustee;

     

    (C)           immediately
after such transaction, no Default exists; and

     

    (D)           the
Issuer shall have delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each stating that such consolidation, wind-up, merger or
transfer and such supplemental indentures, if any, comply with this Indenture;
or

     

    (2)           the
transaction is made in compliance with Section 4.10 hereof.

     

    (e) Notwithstanding
the foregoing, (i) any Guarantor may convert into a corporation, partnership,
limited partnership, limited liability corporation or trust organized or
existing under the laws of the jurisdiction of organization of such Guarantor,
and any Guarantor (other than EFIH) may (A)  merge into or transfer all or
part of its properties and assets to another Guarantor or the Issuer or
(B) merge with an Affiliate of the Issuer solely for the purpose of
reincorporating the Guarantor in the United States, any state thereof, the
District of Columbia or any territory thereof and (ii) EFIH may merge with and
into the Issuer in a Permitted Asset Transfer made in accordance with Section
4.16 hereof.

     

    Section
5.02 Successor Corporation
Substituted

     

    
      	
              .

            

    

     

    Upon any
consolidation or merger, or any sale, assignment, transfer, lease, conveyance or
other disposition of all or substantially all of the assets of the Issuer or any
Guarantor in accordance with Section 5.01 hereof (other than a
consolidation or merger or a sale or other disposition of all or substantially
all of the assets of a Guarantor made in compliance with Section 4.10 hereof),
the successor corporation formed by such consolidation or into or with which the
Issuer or such Guarantor, as the case may be, is merged or to which such sale,
assignment, transfer, lease, conveyance or other disposition is made shall
succeed to, and be substituted for (so that from and after the date of such
consolidation, merger, sale, lease, conveyance or other disposition, the
provisions of this Indenture referring to the Issuer or such Guarantor, as the
case may be, shall refer instead to the successor corporation and not to the
Issuer or such Guarantor, as the case may be), and may exercise every right and
power of the Issuer or such Guarantor, as the case may be, under this Indenture
with the same effect as if such successor Person had been named as the Issuer or
such Guarantor, as the case may be, herein; provided, that the
predecessor Issuer shall not be relieved from the obligation to pay the
principal and interest and Additional Interest, if any, on the Notes, and such
Guarantor shall not be released from its Guarantee, except in the case of a
sale, assignment, transfer, conveyance or other disposition of all of the
Issuer’s or such Guarantor’s, as the case may be, assets that meets the
requirements of Section 5.01 hereof.

     

    ARTICLE
6

     

    

     

    DEFAULTS
AND REMEDIES

     

    Section
6.01 Events of
Default

     

    
      	
              .

            

    

     

    (a) An “Event of Default”
wherever used herein, means any one of the following events (whatever the reason
for such Event of Default and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree or order of any
court or any order, rule or regulation of any administrative or governmental
body):

     

    (1)           default
in payment when due and payable, upon redemption, acceleration or otherwise, of
principal, or premium, if any, on the Notes;

     

    (2)           default
for 30 days or more in the payment when due of interest or Additional Interest,
if any, on or with respect to the Notes;

     

    (3)           failure
by the Issuer or any Restricted Subsidiary for 60 days after receipt of written
notice given by the Trustee or the Holders of not less than 30% in principal
amount of the outstanding Notes to comply with any of its obligations, covenants
or agreements (other than a default referred to in clauses (1) and (2)
above) contained in this Indenture, the Notes or the Security Documents relating
to the Notes;

     

    (4)           default
under any mortgage, indenture or instrument under which there is issued or by
which there is secured or evidenced any Indebtedness for money borrowed by the
Issuer or any of its Restricted Subsidiaries or the payment of which is
guaranteed by the Issuer or any of its Restricted Subsidiaries, other than
Indebtedness owed to the Issuer or a Restricted Subsidiary, whether such
Indebtedness or guarantee now exists or is created after the issuance of the
Notes, if both:

     

    (a)           such
default either results from the failure to pay any principal of such
Indebtedness at its stated final maturity (after giving effect to any applicable
grace periods) or relates to an obligation other than the obligation to pay
principal of any such Indebtedness at its stated final maturity and results in
the holder or holders of such Indebtedness causing such Indebtedness to become
due prior to its stated maturity; and

     

    (b)           the
principal amount of such Indebtedness, together with the principal amount of any
other such Indebtedness in default for failure to pay principal at stated final
maturity (after giving effect to any applicable grace periods), or the maturity
of which has been so accelerated, aggregate $250.0 million or more at any
one time outstanding;

     

    (5)           failure
by the Issuer or any Significant Subsidiary (or any group of Restricted
Subsidiaries that together would constitute a Significant Subsidiary) to pay
final judgments aggregating in excess of $250.0 million, which final
judgments remain unpaid, undischarged and unstayed for a period of more than 60
days after such judgment becomes final, and in the event such judgment is
covered by insurance, an enforcement proceeding has been commenced by any
creditor upon such judgment or decree which is not promptly stayed;

     

    (6)           the
Issuer or any Significant Subsidiary (or any group of Restricted Subsidiaries
that together would constitute a Significant Subsidiary), pursuant to or within
the meaning of any Bankruptcy Law:

     

    (i)           commences
proceedings to be adjudicated bankrupt or insolvent;

     

    (ii)           consents
to the institution of bankruptcy or insolvency proceedings against it, or the
filing by it of a petition or answer or consent seeking reorganization or relief
under applicable Bankruptcy Law;

     

    (iii)           consents
to the appointment of a receiver, liquidator, assignee, trustee, sequestrator or
other similar official of it or for all or substantially all of its
property;

     

    (iv)           makes
a general assignment for the benefit of its creditors; or

     

    (v)           generally
is not paying its debts as they become due;

     

    (7)           a
court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

     

    (i)           is
for relief against the Issuer or any Significant Subsidiary (or any group of
Restricted Subsidiaries that together would constitute a Significant
Subsidiary), in a proceeding in which the Issuer or any Significant Subsidiary
(or any group of Restricted Subsidiaries that together would constitute a
Significant Subsidiary), is to be adjudicated bankrupt or
insolvent;

     

    (ii)           appoints
a receiver, liquidator, assignee, trustee, sequestrator or other similar
official of the Issuer or any Significant Subsidiary (or any group of Restricted
Subsidiaries that together would constitute a Significant Subsidiary), or for
all or substantially all of the property of the Issuer or any Significant
Subsidiary (or any group of Restricted Subsidiaries that together would
constitute a Significant Subsidiary); or

     

    (iii)           orders
the liquidation of the Issuer or any Significant Subsidiary (or any group of
Restricted Subsidiaries that, taken together, would constitute a Significant
Subsidiary);

     

    and the
order or decree remains unstayed and in effect for 60 consecutive
days;

     

    (8)           the
Guarantee of any Significant Subsidiary (or any group of Restricted Subsidiaries
that together would constitute a Significant Subsidiary) shall for any reason
cease to be in full force and effect or be declared null and void or any
responsible officer of any Guarantor that is a Significant Subsidiary (or any
group of Restricted Subsidiaries that together would constitute a Significant
Subsidiary), as the case may be, denies that it has any further liability under
its Guarantee or gives notice to such effect, other than by reason of the
termination of this Indenture or the release of any such Guarantee in accordance
with this Indenture; or

     

    (9)           with
respect to Collateral having a fair market value in excess of $250.0 million in
the aggregate, any security interest and Lien purported to be created by any
Security Document with respect to the Collateral (a) ceases to be in full force
and effect, (b) ceases to give the Collateral Trustee, for the benefit of the
Holders of the Notes, the Liens, rights, powers and privileges purported to be
created and granted thereby (including a perfected first-priority security
interest in and Lien on, all of the Collateral thereunder) in favor of the
Collateral Trustee, or (c) is asserted by EFIH not to be, a valid, perfected,
first priority (except as otherwise expressly provided in this Indenture or the
Collateral Trust Agreement) security interest in or Lien on the Collateral
covered thereby.

     

    (b) In the
event of any Event of Default specified in clause (4) of
Section 6.01(a) hereof, such Event of Default and all consequences thereof
(excluding any resulting payment default, other than as a result of acceleration
of the Notes) shall be annulled, waived and rescinded, automatically and without
any action by the Trustee or the Holders, if within 20 days after such Event of
Default arose:

     

    (1) the
Indebtedness or guarantee that is the basis for such Event of Default has been
discharged; or

     

    (2) the
holders thereof have rescinded or waived the acceleration, notice or action (as
the case may be) giving rise to such Event of Default; or

     

    (3) the
default that is the basis for such Event of Default has been cured.

     

    Section
6.02 Acceleration

     

    
      	
              .

            

    

     

    If any
Event of Default (other than an Event of Default specified in clause (6) or
(7) of Section 6.01(a) hereof) occurs and is continuing under this
Indenture, the Trustee or the Holders of at least 30% in aggregate principal
amount of the Notes may declare the principal, premium, if any, interest and any
other monetary obligations on all the then outstanding Notes to be due and
payable immediately.  Upon the effectiveness of such declaration, such
principal and interest shall be due and payable immediately.  The
Trustee shall have no obligation to accelerate the Notes if and so long as a
committee of its Responsible Officers in good faith determines acceleration is
not in the best interest of the Holders of the Notes.

     

    Notwithstanding
the foregoing, in the case of an Event of Default arising under clause (6)
or (7) of Section 6.01(a) hereof, all outstanding Notes shall be due and
payable immediately without further action or notice.

     

    The
Holders of at least a majority in aggregate principal amount of the Notes by
written notice to the Trustee may on behalf of all of the Holders waive any
existing Default and its consequences under this Indenture except a continuing
Default in the payment of interest on, premium, if any, or the principal of any
Note (held by a non consenting Holder) and rescind any acceleration with respect
to the Notes and its consequences (so long as such rescission would not conflict
with any judgment of a court of competent jurisdiction).

     

    Section
6.03 Other
Remedies

     

    
      	
              .

            

    

     

    If an
Event of Default occurs and is continuing, the Trustee may pursue any available
remedy to collect the payment of principal, premium, if any, and interest on the
Notes or to enforce the performance of any provision of the Notes or this
Indenture.

     

    The
Trustee may maintain a proceeding even if it does not possess any of the Notes
or does not produce any of them in the proceeding.  A delay or
omission by the Trustee or any Holder of a Note in exercising any right or
remedy accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default.  All
remedies are cumulative to the extent permitted by law.

     

    Section
6.04 Waiver of Past
Defaults

     

    
      	
              .

            

    

     

    The
Holders of at least a majority in aggregate principal amount of the Notes by
notice to the Trustee may on behalf of the Holders of all of the Notes waive any
existing Default and its consequences hereunder, except a continuing Default in
the payment of the principal, premium, if any, or interest and Additional
Interest, if any, on, any Note held by a non-consenting Holder and rescind any
acceleration with respect to the Notes and its consequences (provided such
rescission would not conflict with any judgment of a court of competent
jurisdiction); provided, subject to
Section 6.02 hereof, that the Holders of a majority in aggregate principal
amount of the then outstanding Notes may rescind an acceleration and its
consequences, including any related payment default that resulted from such
acceleration.  Upon any such waiver, such Default shall cease to
exist, and any Event of Default arising therefrom shall be deemed to have been
cured for every purpose of this Indenture; but no such waiver shall extend to
any subsequent or other Default or impair any right consequent
thereon.

     

    Section
6.05 Control by
Majority

     

    
      	
              .

            

    

     

    The
Holders of at least a majority in aggregate principal amount of the Notes may
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or of exercising any trust or power conferred on the
Trustee.  The Trustee, however, may refuse to follow any direction
that conflicts with law or this Indenture or that the Trustee determines is
unduly prejudicial to the rights of any other Holder of a Note or that would
involve the Trustee in personal liability.

     

    Section
6.06 Limitation on
Suits

     

    
      	
              .

            

    

     

    Subject
to Section 6.07 hereof, no Holder of a Note may pursue any remedy with
respect to this Indenture or the Notes unless:

     

    (1) such
Holder has previously given the Trustee notice that an Event of Default is
continuing;

     

    (2) Holders
of at least 30% in aggregate principal amount of the Notes have requested the
Trustee to pursue the remedy;

     

    (3) Holders
of the Notes have offered the Trustee security or indemnity reasonably
satisfactory to it against any loss, liability or expense;

     

    (4) the
Trustee has not complied with such request within 60 days after the receipt
thereof and the offer of security or indemnity; and

     

    (5) the
Holders of at least a majority in aggregate principal amount of the outstanding
Notes have not given the Trustee a direction inconsistent with such request
within such 60-day period.

     

    A Holder
of a Note may not use this Indenture to prejudice the rights of another Holder
of a Note or to obtain a preference or priority over another Holder of a
Note.

     

    Section
6.07 Rights of Holders of Notes
to Receive Payment

     

    
      	
              .

            

    

     

    Notwithstanding
any other provision of this Indenture, the right of any Holder of a Note to
receive payment of principal, premium, if any, and interest and Additional
Interest, if any, on the Note, on or after the respective due dates expressed in
the Note (including in connection with an Asset Sale Offer or a Change of
Control Offer), or to bring suit for the enforcement of any such payment on or
after such respective dates, shall not be impaired or affected without the
consent of such Holder.

     

    Section
6.08 Collection Suit by
Trustee

     

    
      	
              .

            

    

     

    If an
Event of Default specified in clause (1) or (2) of Section 6.01(a) hereof
occurs and is continuing, the Trustee is authorized to recover judgment in its
own name and as trustee of an express trust against the Issuer for the whole
amount of principal, premium, if any, and interest and Additional Interest, if
any, remaining unpaid on the Notes and interest on overdue principal and, to the
extent lawful, interest and such further amount as shall be sufficient to cover
the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and
counsel.

     

    Section
6.09 Restoration of Rights and
Remedies

     

    
      	
              .

            

    

     

    If the
Trustee or any Holder has instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee or to
such Holder, then and in every such case, subject to any determination in such
proceedings, the Issuer, the Trustee and the Holders shall be restored severally
and respectively to their former positions hereunder and thereafter all rights
and remedies of the Trustee and the Holders shall continue as though no such
proceeding has been instituted.

     

    Section
6.10 Rights and Remedies
Cumulative

     

    
      	
              .

            

    

     

    Except as
otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Notes in Section 2.07 hereof, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders is intended
to be exclusive of any other right or remedy, and every right and remedy shall,
to the extent permitted by law, be cumulative and in addition to every other
right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise.  The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

     

    Section
6.11 Delay or Omission Not
Waiver

     

    
      	
              .

            

    

     

    No delay
or omission of the Trustee or of any Holder of any Note to exercise any right or
remedy accruing upon any Event of Default shall impair any such right or remedy
or constitute a waiver of any such Event of Default or an acquiescence
therein.  Every right and remedy given by this Article or by law to
the Trustee or to the Holders may be exercised from time to time, and as often
as may be deemed expedient, by the Trustee or by the Holders, as the case may
be.

     

    Section
6.12 Trustee May File Proofs
of Claim

     

    
      	
              .

            

    

     

    The
Trustee is authorized to file such proofs of claim and other papers or documents
as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel) and the Holders of the
Notes allowed in any judicial proceedings relative to the Issuer (or any other
obligor upon the Notes including the Guarantors), its creditors or its property
and shall be entitled and empowered to participate as a member in any official
committee of creditors appointed in such matter and to collect, receive and
distribute any money or other property payable or deliverable on any such claims
and any custodian in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee, and in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to
the Trustee any amount due to it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 7.07 hereof.  To the extent
that the payment of any such compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel, and any other amounts due the Trustee
under Section 7.07 hereof out of the estate in any such proceeding, shall
be denied for any reason, payment of the same shall be secured by a Lien on, and
shall be paid out of, any and all distributions, dividends, money, securities
and other properties that the Holders may be entitled to receive in such
proceeding whether in liquidation or under any Plan of Reorganization or
arrangement or otherwise. Nothing herein contained shall be deemed to authorize
the Trustee to authorize or consent to or accept or adopt on behalf of any
Holder any Plan of Reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Holder, or to authorize the Trustee to
vote in respect of the claim of any Holder in any such proceeding.

     

    Section
6.13 Priorities

     

    
      	
              .

            

    

     

    If the
Trustee collects any money or property pursuant to this Article 6, it shall pay
out the money or property in the following order:

     

    (i) to the
Trustee, its agents and attorneys for amounts due under Section 7.07
hereof, including payment of all compensation, expenses and liabilities
incurred, and all advances made, by the Trustee and the costs and expenses of
collection;

     

    (ii) to
Holders of Notes for amounts due and unpaid on the Notes for principal, premium,
if any, and interest and Additional Interest, if any, ratably, without
preference or priority of any kind, according to the amounts due and payable on
the Notes for principal, premium, if any, and interest and Additional Interest,
if any, respectively; and

     

    (iii) to the
Issuer or to such party as a court of competent jurisdiction shall direct
including a Guarantor, if applicable.

     

    The
Trustee may fix a Record Date and payment date for any payment to Holders of
Notes pursuant to this Section 6.13.

     

    Section
6.14 Undertaking for
Costs

     

    
      	
              .

            

    

     

    In any
suit for the enforcement of any right or remedy under this Indenture or in any
suit against the Trustee for any action taken or omitted by it as a Trustee, a
court in its discretion may require the filing by any party litigant in the suit
of an undertaking to pay the costs of the suit, and the court in its discretion
may assess reasonable costs, including reasonable attorneys’ fees, against any
party litigant in the suit, having due regard to the merits and good faith of
the claims or defenses made by the party litigant.  This
Section 6.14 does not apply to a suit by the Trustee, a suit by a Holder of
a Note pursuant to Section 6.07 hereof, or a suit by Holders of more than
10% in principal amount of the then outstanding Notes.

     

    ARTICLE
7

     

    

     

    TRUSTEE

     

    Section
7.01 Duties of
Trustee

     

    
      	
              .

            

    

     

    (a) If an
Event of Default has occurred and is continuing, the Trustee shall exercise such
of the rights and powers vested in it by this Indenture, and use the same degree
of care and skill in its exercise, as a prudent person would exercise or use
under the circumstances in the conduct of such person’s own
affairs.

     

    (b) Except
during the continuance of an Event of Default:

     

    (i) the
duties of the Trustee shall be determined solely by the express provisions of
this Indenture and the Trustee need perform only those duties that are
specifically set forth in this Indenture and no others, and no implied covenants
or obligations shall be read into this Indenture against the Trustee;
and

     

    (ii) in the
absence of bad faith on its part, the Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein,
upon certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture.  However, in the case of any such
certificates or opinions which by any provision hereof are specifically required
to be furnished to the Trustee, the Trustee shall examine the certificates and
opinions to determine whether or not they conform to the requirements of this
Indenture.

     

    (c) The
Trustee may not be relieved from liabilities for its own negligent action, its
own negligent failure to act, or its own willful misconduct, except
that:

     

    (i) this
paragraph does not limit the effect of clause (b) of this
Section 7.01;

     

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

     

    (iii) the
Trustee shall not be liable with respect to any action it takes or omits to take
in good faith in accordance with a direction received by it pursuant to
Section 6.05 hereof.

     

    (d) Whether
or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to clauses (a), (b) and (c) of this
Section 7.01.

     

    (e) The
Trustee shall be under no obligation to exercise any of its rights or powers
under this Indenture at the request or direction of any Holder of the Notes
unless such Holder shall have offered to the Trustee indemnity or security
reasonably satisfactory to it against any loss, liability or
expense.

     

    (f) The
Trustee shall not be liable for interest on any money received by it except as
the Trustee may agree in writing with the Issuer.  Money held in trust
by the Trustee need not be segregated from other funds except to the extent
required by law.

     

    Section
7.02 Rights of
Trustee

     

    
      	
              .

            

    

     

    (a) The
Trustee may conclusively rely upon any document believed by it to be genuine and
to have been signed or presented by the proper Person.  The Trustee
need not investigate any fact or matter stated in the document, but the Trustee,
in its discretion, may make such further inquiry or investigation into such
facts or matters as it may see fit, and, if the Trustee shall determine to make
such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Issuer, personally or by agent or attorney at
the sole cost of the Issuer and shall incur no liability or additional liability
of any kind by reason of such inquiry or investigation.

     

    (b) Before
the Trustee acts or refrains from acting, it may require an Officer’s
Certificate or an Opinion of Counsel or both.  The Trustee shall not
be liable for any action it takes or omits to take in good faith in reliance on
such Officer’s Certificate or Opinion of Counsel.  The Trustee may
consult with counsel of its selection and the written advice of such counsel or
any Opinion of Counsel shall be full and complete authorization and protection
from liability in respect of any action taken, suffered or omitted by it
hereunder in good faith and in reliance thereon.

     

    (c) The
Trustee may act through its attorneys and agents and shall not be responsible
for the misconduct or negligence of any agent or attorney appointed with due
care.

     

    (d) The
Trustee shall not be liable for any action it takes or omits to take in good
faith that it believes to be authorized or within the rights or powers conferred
upon it by this Indenture.

     

    (e) Unless
otherwise specifically provided in this Indenture, any demand, request,
direction or notice from the Issuer shall be sufficient if signed by an Officer
of the Issuer.

     

    (f) None of
the provisions of this Indenture shall require the Trustee to expend or risk its
own funds or otherwise to incur any liability, financial or otherwise, in the
performance of any of its duties hereunder, or in the exercise of any of its
rights or powers if it shall have reasonable grounds for believing that
repayment of such funds or indemnity satisfactory to it against such risk or
liability is not assured to it.

     

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

     

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

     

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

     

    (j) In the
event the Issuer is required to pay Additional Interest, the Issuer will provide
written notice to the Trustee of the Issuer’s obligation to pay Additional
Interest no later than 15 days prior to the next Interest Payment Date, which
notice shall set forth the amount of the Additional Interest to be paid by the
Issuer.  The Trustee shall not at any time be under any duty or
responsibility to any Holders to determine whether the Additional Interest is
payable and the amount thereof.

     

    Section
7.03 Individual Rights of
Trustee

     

    
      	
              .

            

    

     

    The
Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Issuer or any Affiliate of the Issuer
with the same rights it would have if it were not Trustee.  However,
in the event that the Trustee acquires any conflicting interest it must
eliminate such conflict within 90 days, apply to the SEC for permission to
continue as trustee or resign.  Any Agent may do the same with like
rights and duties.  The Trustee is also subject to Sections 7.10
and 7.11 hereof.

     

    Section
7.04 Trustee’s
Disclaimer

     

    
      	
              .

            

    

     

    The
Trustee shall not be responsible for and makes no representation as to the
validity or adequacy of this Indenture or the Notes, it shall not be accountable
for the Issuer’s use of the proceeds from the Notes or any money paid to the
Issuer or upon the Issuer’s direction under any provision of this Indenture, it
shall not be responsible for the use or application of any money received by any
Paying Agent other than the Trustee, and it shall not be responsible for any
statement or recital herein or any statement in the Notes or any other document
in connection with the sale of the Notes or pursuant to this Indenture other
than its certificate of authentication.

     

    Section
7.05 Notice of
Defaults

     

    
      	
              .

            

    

     

    If a
Default occurs and is continuing and if it is known to the Trustee, the Trustee
shall mail to Holders of Notes a notice of the Default within 90 days after it
occurs.  Except in the case of a Default relating to the payment of
principal, premium, if any, or interest on any Note, the Trustee may withhold
from the Holders notice of any continuing Default if and so long as a committee
of its Responsible Officers in good faith determines that withholding the notice
is in the interests of the Holders of the Notes.  The Trustee shall
not be deemed to know of any Default unless a Responsible Officer of the Trustee
has actual knowledge thereof or unless written notice of any event which is such
a Default is received by the Trustee at the Corporate Trust Office of the
Trustee.

     

    Section
7.06 Reports by Trustee to
Holders of the Notes

     

    
      	
              .

            

    

     

    Within 60
days after each May 15, beginning with the May 15 following the date
of this Indenture, and for so long as Notes remain outstanding, the Trustee
shall mail to the Holders of the Notes a brief report dated as of such reporting
date that complies with Trust Indenture Act Section 313(a) (but if no event
described in Trust Indenture Act Section 313(a) has occurred within the
twelve months preceding the reporting date, no report need be
transmitted).  The Trustee also shall comply with Trust Indenture Act
Section 313(b)(2).  The Trustee shall also transmit by mail all
reports as required by Trust Indenture Act Section 313(c).

     

    A copy of
each report at the time of its mailing to the Holders of Notes shall be mailed
to the Issuer and filed with the SEC and each stock exchange on which the Notes
are listed in accordance with Trust Indenture Act
Section 313(d).  The Issuer shall promptly notify the Trustee
when the Notes are listed on any stock exchange.

     

    Section
7.07 Compensation and
Indemnity

     

    
      	
              .

            

    

     

    The
Issuer and the Guarantors, jointly and severally, shall pay to the Trustee from
time to time such compensation for its acceptance of this Indenture and services
hereunder as the parties shall agree in writing from time to
time.  The Trustee’s compensation shall not be limited by any law on
compensation of a trustee of an express trust.  The Issuer and the
Guarantors, jointly and severally, shall reimburse the Trustee promptly upon
request for all reasonable disbursements, advances and expenses incurred or made
by it in addition to the compensation for its services.  Such expenses
shall include the reasonable compensation, disbursements and expenses of the
Trustee’s agents and counsel.

     

    The
Issuer and the Guarantors, jointly and severally, shall indemnify the Trustee
for, and hold the Trustee harmless against, any and all loss, damage, claims,
liability or expense (including attorneys’ fees) incurred by it in connection
with the acceptance or administration of this trust and the performance of its
duties hereunder (including the costs and expenses of enforcing this Indenture
against the Issuer or any of the Guarantors (including this Section 7.07)
or defending itself against any claim whether asserted by any Holder, the Issuer
or any Guarantor, or liability in connective with the acceptance, exercise or
performance of any of its powers or duties hereunder).  The Trustee
shall notify the Issuer promptly of any claim for which it may seek
indemnity.  Failure by the Trustee to so notify the Issuer shall not
relieve the Issuer of its obligations hereunder.  The Issuer shall
defend the claim and the Trustee may have separate counsel and the Issuer shall
pay the fees and expenses of such counsel.  The Issuer need not
reimburse any expense or indemnify against any loss, liability or expense
incurred by the Trustee through the Trustee’s own willful misconduct, negligence
or bad faith.

     

    The
obligations of the Issuer under this Section 7.07 shall survive the
satisfaction and discharge of this Indenture or the earlier resignation or
removal of the Trustee.

     

    Notwithstanding
anything to the contrary in Section 4.12 hereof, to secure the payment
obligations of the Issuer and the Guarantors in this Section 7.07, the
Trustee shall have a Lien prior to the Notes on all money or property held or
collected by the Trustee, except that held in trust to pay principal and
interest on particular Notes.  Such Lien shall survive the
satisfaction and discharge of this Indenture.

     

    When the
Trustee incurs expenses or renders services after an Event of Default specified
in clause (6) or (7) of Section 6.01(a) hereof occurs, the expenses and the
compensation for the services (including the fees and expenses of its agents and
counsel) are intended to constitute expenses of administration under any
Bankruptcy Law.

     

    The
Trustee shall comply with the provisions of Trust Indenture Act
Section 313(b)(2) to the extent applicable.

     

    Section
7.08 Replacement of
Trustee

     

    
      	
              .

            

    

     

    A
resignation or removal of the Trustee and appointment of a successor Trustee
shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section 7.08.  The Trustee may
resign at any time by giving 30 days prior written notice of such resignation to
the Issuer and be discharged from the trust hereby created by so notifying the
Issuer.  The Holders of a majority in principal amount of the then
outstanding Notes may remove the Trustee by so notifying the Trustee and the
Issuer in writing.  The Issuer may remove the Trustee if:

     

    (a) the
Trustee fails to comply with Section 7.10 hereof;

     

    (b) the
Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered
with respect to the Trustee under any Bankruptcy Law;

     

    (c) a
custodian or public officer takes charge of the Trustee or its property;
or

     

    (d) the
Trustee becomes incapable of acting.

     

    If the
Trustee resigns or is removed or if a vacancy exists in the office of Trustee
for any reason, the Issuer shall promptly appoint a successor
Trustee.  Within one year after the successor Trustee takes office,
the Holders of a majority in principal amount of the then outstanding Notes may
appoint a successor Trustee to replace the successor Trustee appointed by the
Issuer.

     

    If a
successor Trustee does not take office within 60 days after the retiring Trustee
resigns or is removed, the retiring Trustee (at the Issuer’s expense), the
Issuer or the Holders of at least 10% in principal amount of the then
outstanding Notes may petition any court of competent jurisdiction for the
appointment of a successor Trustee.

     

    If the
Trustee, after written request by any Holder who has been a Holder for at least
six months, fails to comply with Section 7.10 hereof, such Holder may
petition any court of competent jurisdiction for the removal of the Trustee and
the appointment of a successor Trustee.

     

    A
successor Trustee shall deliver a written acceptance of its appointment to the
retiring Trustee and to the Issuer.  Thereupon, the resignation or
removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture.  The successor Trustee shall mail a notice of its
succession to Holders.  The retiring Trustee shall promptly transfer
all property held by it as Trustee to the successor Trustee; provided, all sums
owing to the Trustee hereunder have been paid and subject to the Lien provided
for in Section 7.07 hereof.  Notwithstanding replacement of the
Trustee pursuant to this Section 7.08, the Issuer’s obligations under
Section 7.07 hereof shall continue for the benefit of the retiring
Trustee.

     

    Section
7.09 Successor Trustee by Merger,
etc

     

    
      	
              .

            

    

     

    If the
Trustee consolidates, merges or converts into, or transfers all or substantially
all of its corporate trust business to, another corporation, the successor
corporation without any further act shall be the successor Trustee.

     

    Section
7.10 Eligibility;
Disqualification

     

    
      	
              .

            

    

     

    There
shall at all times be a Trustee hereunder that is a corporation organized and
doing business under the laws of the United States of America or of any state
thereof that is authorized under such laws to exercise corporate trustee power,
that is subject to supervision or examination by federal or state authorities
and that has a combined capital and surplus of at least $50,000,000 as set forth
in its most recent published annual report of condition.

     

    This
Indenture shall always have a Trustee who satisfies the requirements of Trust
Indenture Act Sections 310(a)(1), (2) and (5).  The Trustee is subject
to Trust Indenture Act Section 310(b).

     

    Section
7.11 Preferential Collection of
Claims Against Issuer

     

    
      	
              .

            

    

     

    The
Trustee is subject to Trust Indenture Act Section 311(a), excluding any
creditor relationship listed in Trust Indenture Act
Section 311(b).  A Trustee who has resigned or been removed shall
be subject to Trust Indenture Act Section 311(a) to the extent indicated
therein.

     

    ARTICLE
8

     

    

     

    LEGAL
DEFEASANCE AND COVENANT DEFEASANCE

     

    Section
8.01 Option to Effect Legal
Defeasance or Covenant Defeasance

     

    
      	
              .

            

    

     

    The
Issuer may, at its option and at any time, elect to have either
Section 8.02 or 8.03 hereof applied to all outstanding Notes upon
compliance with the conditions set forth below in this Article 8.

     

    Section
8.02 Legal Defeasance and
Discharge

     

    
      	
              .

            

    

     

    Upon the
Issuer’s exercise under Section 8.01 hereof of the option applicable to
this Section 8.02, the Issuer and the Guarantors shall, subject to the
satisfaction of the conditions set forth in Section 8.04 hereof, be deemed
to have been discharged from their obligations with respect to all outstanding
Notes and Guarantees on the date the conditions set forth below are satisfied
(“Legal
Defeasance”).  For this purpose, Legal Defeasance means that
the Issuer shall be deemed to have paid and discharged the entire Indebtedness
represented by the outstanding Notes, which shall thereafter be deemed to be
“outstanding” only for the purposes of Section 8.05 hereof and the other
Sections of this Indenture referred to in (a) and (b) below, and to have
satisfied all its other obligations under such Notes and this Indenture
including that of the Guarantors (and the Trustee, on demand of and at the
expense of the Issuer, shall execute proper instruments acknowledging the same),
except for the following provisions which shall survive until otherwise
terminated or discharged hereunder:

     

    (a) the
rights of Holders of Notes to receive payments in respect of the principal,
premium, if any, and interest on the Notes when such payments are due solely out
of the trust created pursuant to this Indenture referred to in Section 8.04
hereof;

     

    (b) the
Issuer’s obligations with respect to Notes concerning issuing temporary Notes,
registration of such Notes, mutilated, destroyed, lost or stolen Notes and the
maintenance of an office or agency for payment and money for security payments
held in trust;

     

    (c) the
rights, powers, trusts, duties and immunities of the Trustee, and the Issuer’s
obligations in connection therewith; and

     

    (d) this
Section 8.02.

     

    Subject
to compliance with this Article 8, the Issuer may exercise its option under this
Section 8.02 notwithstanding the prior exercise of its option under
Section 8.03 hereof.

     

    Section
8.03 Covenant
Defeasance

     

    
      	
              .

            

    

     

    Upon the
Issuer’s exercise under Section 8.01 hereof of the option applicable to
this Section 8.03, the Collateral shall be released from the Lien securing
the Notes as provided in Section 10.06 hereof, and the Issuer and the Guarantors
shall, subject to the satisfaction of the conditions set forth in
Section 8.04 hereof, be released from their obligations under the covenants
contained in Sections 4.03, 4.04, 4.05, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12,
4.13, 4.14, 4.15, 4.16, 4.17, 4.18, 4.19, 4.20 and 4.21 hereof and clauses (3)
and (4) of Section 5.01(a), Sections 5.01(c) and 5.01(d) hereof with
respect to the outstanding Notes on and after the date the conditions set forth
in Section 8.04 hereof are satisfied (“Covenant
Defeasance”), and the Notes shall thereafter be deemed not “outstanding”
for the purposes of any direction, waiver, consent or declaration or act of
Holders (and the consequences of any thereof) in connection with such covenants,
but shall continue to be deemed “outstanding” for all other purposes hereunder
(it being understood that such Notes shall not be deemed outstanding for
accounting purposes).  For this purpose, Covenant Defeasance means
that, with respect to the outstanding Notes, the Issuer may omit to comply with
and shall have no liability in respect of any term, condition or limitation set
forth in any such covenant, whether directly or indirectly, by reason of any
reference elsewhere herein to any such covenant or by reason of any reference in
any such covenant to any other provision herein or in any other document and
such omission to comply shall not constitute a Default or an Event of Default
under Section 6.01 hereof, but, except as specified above, the remainder of
this Indenture and such Notes shall be unaffected thereby.  In
addition, upon the Issuer’s exercise under Section 8.01 hereof of the
option applicable to this Section 8.03 hereof, subject to the satisfaction
of the conditions set forth in Section 8.04 hereof, clauses (3), (4), (5),
(6) of Section 6.01(a) hereof, (solely with respect to Restricted
Subsidiaries or groups of Restricted Subsidiaries that are Significant
Subsidiaries), clause (7) of Section 6.01(a) hereof (solely with respect to
Restricted Subsidiaries or groups of Restricted Subsidiaries that are
Significant Subsidiaries), and clauses (8) and (9) of Section 6.01(a) hereof
shall not constitute Events of Default.

     

    Section
8.04 Conditions to Legal or
Covenant Defeasance

     

    
      	
              .

            

    

     

    The
following shall be the conditions to the application of either Section 8.02
or 8.03 hereof to the outstanding Notes:

     

    (1) the
Issuer must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders of the Notes, cash in U.S. dollars, Government Securities, or a
combination thereof, in such amounts as shall be sufficient, in the opinion of a
nationally recognized firm of independent public accountants, to pay the
principal, premium, if any, and interest due on the Notes on the stated maturity
date or on the redemption date, as the case may be, of such principal, premium,
if any, or interest on such Notes and the Issuer must specify whether such Notes
are being defeased to maturity or to a particular redemption date;

     

    (2) in the
case of Legal Defeasance, the Issuer shall have delivered to the Trustee an
Opinion of Counsel reasonably acceptable to the Trustee confirming that, subject
to customary assumptions and exclusions,

     

    (a)           the
Issuer has received from, or there has been published by, the United States
Internal Revenue Service a ruling, or

     

    (b)           since
the Issue Date, there has been a change in the applicable U.S. federal income
tax law,

     

    in either
case to the effect that, and based thereon such Opinion of Counsel shall confirm
that, subject to customary assumptions and exclusions, the Holders of the Notes
will not recognize income, gain or loss for U.S. federal income tax purposes, as
applicable, as a result of such Legal Defeasance and will be subject to U.S.
federal income tax on the same amounts, in the same manner and at the same times
as would have been the case if such Legal Defeasance had not
occurred;

     

    (3) in the
case of Covenant Defeasance, the Issuer shall have delivered to the Trustee an
Opinion of Counsel reasonably acceptable to the Trustee confirming that, subject
to customary assumptions and exclusions, the Holders of the Notes will not
recognize income, gain or loss for U.S. federal income tax purposes as a result
of such Covenant Defeasance and will be subject to such tax on the same amounts,
in the same manner and at the same times as would have been the case if such
Covenant Defeasance had not occurred;

     

    (4) no
Default (other than that resulting from borrowing funds to be applied to make
such deposit and any similar and simultaneous deposit relating to other
Indebtedness and, in each case, the granting of Liens in connection therewith)
shall have occurred and be continuing on the date of such deposit;

     

    (5) such
Legal Defeasance or Covenant Defeasance shall not result in a breach or
violation of, or constitute a default under any material agreement or instrument
(other than this Indenture) to which the Issuer or any Guarantor is a party or
by which the Issuer or any Guarantor is bound (other than that resulting from
borrowing funds to be applied to make the deposit required to effect such Legal
Defeasance or Covenant Defeasance and any similar and simultaneous deposit
relating to other Indebtedness and, in each case, the granting of Liens in
connection therewith);

     

    (6) the
Issuer shall have delivered to the Trustee an Opinion of Counsel to the effect
that, as of the date of such opinion and subject to customary assumptions and
exclusions following the deposit, the trust funds will not be subject to the
effect of Section 547 of the Bankruptcy Code;

     

    (7) the
Issuer shall have delivered to the Trustee an Officer’s Certificate stating that
the deposit was not made by the Issuer with the intent of defeating, hindering,
delaying or defrauding any creditors of the Issuer or any Guarantor or others;
and

     

    (8) the
Issuer shall have delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel (which Opinion of Counsel may be subject to customary
assumptions and exclusions) each stating that all conditions precedent provided
for or relating to the Legal Defeasance or the Covenant Defeasance, as the case
may be, have been complied with.

     

    Section
8.05 Deposited Money and
Government Securities to Be Held in Trust; Other Miscellaneous
Provisions

     

    
      	
              .

            

    

     

    Subject
to Section 8.06 hereof, all money and Government Securities (including the
proceeds thereof) deposited with the Trustee (or other qualifying trustee,
collectively for purposes of this Section 8.05, the “Trustee”) pursuant to
Section 8.04 hereof in respect of the outstanding Notes shall be held in
trust and applied by the Trustee, in accordance with the provisions of such
Notes and this Indenture, to the payment, either directly or through any Paying
Agent (including the Issuer or a Guarantor acting as Paying Agent) as the
Trustee may determine, to the Holders of such Notes of all sums due and to
become due thereon in respect of principal, premium and interest and Additional
Interest, if any, but such money need not be segregated from other funds except
to the extent required by law.

     

    The
Issuer shall pay and indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against the cash or Government Securities deposited
pursuant to Section 8.04 hereof or the principal and interest received in
respect thereof other than any such tax, fee or other charge which by law is for
the account of the Holders of the outstanding Notes.

     

    Anything
in this Article 8 to the contrary notwithstanding, the Trustee shall deliver or
pay to the Issuer from time to time upon the request of the Issuer any money or
Government Securities held by it as provided in Section 8.04 hereof which,
in the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee (which may
be the opinion delivered under Section 8.04(1) hereof), are in excess of
the amount thereof that would then be required to be deposited to effect an
equivalent Legal Defeasance or Covenant Defeasance.

     

    Section
8.06 Repayment to
Issuer

     

    
      	
              .

            

    

     

    Subject
to any applicable abandoned property law, any money deposited with the Trustee
or any Paying Agent, or then held by the Issuer, in trust for the payment of the
principal, premium, if any, and interest and Additional Interest, if any, on,
any Note and remaining unclaimed for two years after such principal, and premium
and  Additional Interest, if any, and interest has become due and
payable shall be paid to the Issuer on its request or (if then held by the
Issuer) shall be discharged from such trust; and the Holder of such Note shall
thereafter look only to the Issuer for payment thereof, and all liability of the
Trustee or such Paying Agent with respect to such trust money, and all liability
of the Issuer as trustee thereof, shall thereupon cease.

     

    Section
8.07 Reinstatement

     

    
      	
              .

            

    

     

    If the
Trustee or Paying Agent is unable to apply any United States dollars or
Government Securities in accordance with Section 8.02 or 8.03 hereof, as
the case may be, by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, then
the Issuer’s obligations under this Indenture and the Notes shall be revived and
reinstated as though no deposit had occurred pursuant to Section 8.02 or
8.03 hereof until such time as the Trustee or Paying Agent is permitted to apply
all such money in accordance with Section 8.02 or 8.03 hereof, as the case
may be; provided that if the
Issuer makes any payment of principal, premium and interest and Additional
Interest, if any, on any Note following the reinstatement of its obligations,
the Issuer shall be subrogated to the rights of the Holders of such Notes to
receive such payment from the money held by the Trustee or Paying
Agent.

     

    ARTICLE
9

     

    

     

    AMENDMENT,
SUPPLEMENT AND WAIVER

     

    Section
9.01 Without Consent of Holders
of Notes

     

    
      	
              .

            

    

     

    Notwithstanding
Section 9.02 of this Indenture, the Issuer, the Guarantors and the Trustee
may amend or supplement this Indenture, the Notes, the Guarantees or any
Security Document at any time after the Issue Date without the consent of any
Holder to:

     

    (1) cure any
ambiguity, omission, mistake, defect or inconsistency;

     

    (2) provide
for uncertificated Notes of such series in addition to or in place of
certificated Notes;

     

    (3) comply
with Section 5.01 hereof;

     

    (4) provide
for the assumption of the Issuer’s or any Guarantor’s obligations to the
Holders;

     

    (5) make any
change that would provide any additional rights or benefits to the Holders or
that does not adversely affect the legal rights under this Indenture of any such
Holder;

     

    (6) add
covenants for the benefit of the Holders or to surrender any right or power
conferred upon the Issuer or any Guarantor;

     

    (7) comply
with requirements of the SEC in order to effect or maintain the qualification of
this Indenture under the Trust Indenture Act;

     

    (8) evidence
and provide for the acceptance and appointment under this Indenture of a
successor Trustee thereunder pursuant to the requirements thereof;

     

    (9) to
provide for the issuance of Additional Notes;

     

    (10) to
provide for the issuance of Exchange Notes or private exchange notes, which are
identical to Exchange Notes except that they are not freely
transferable;

     

    (11) add a
Guarantor under this Indenture;

     

    (12) conform
the text of this Indenture, the Guarantees, the Notes or any Security Document
to any provision of the “Description of the Notes” section of the Offering
Memorandum to the extent such provision in such “Description of the Notes”
section was intended to be a verbatim recitation of a provision of this
Indenture, the Guarantees, the Notes or any Security Document;

     

    (13) make any
amendment to the provisions of this Indenture relating to the transfer and
legending of Notes as permitted by this Indenture, including, without
limitation, to facilitate the issuance and administration of the Notes; provided, however, that
(i) compliance with this Indenture as so amended would not result in Notes
being transferred in violation of the Securities Act or any applicable
securities law and (ii) such amendment does not materially and adversely
affect the rights of Holders to transfer Notes;

     

    (14) mortgage,
pledge, hypothecate or grant any other Lien in favor of the Trustee for the
benefit of the Holders of the Notes, as security for the payment and performance
of all or any portion of the Obligations, in any property or
assets;

     

    (15) amend
this Indenture substantially in the manner set forth in the Permitted Transfer
Supplemental Indenture to be entered into in connection with the consummation of
a Permitted Asset Transfer pursuant to Section 4.16 hereof or in the TCEH
Transfer Supplemental Indenture to be entered into in connection with the
consummation of a TCEH Transfer pursuant to Section 4.17 hereof; or

     

    (16) provide
for the accession or succession of any parties to the Security Documents (and
other amendments that are administrative or ministerial in nature) in connection
with an amendment, renewal, extension, substitution, refinancing, restructuring,
replacement, supplementing or other modification from time to time of any
agreement or action that is not prohibited by this Indenture, including to add
any additional secured parties to the extent not prohibited by this
Indenture.

     

    Upon the
request of the Issuer accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture, and
upon receipt by the Trustee of the documents described in Sections 7.02 and
13.04 hereof, the Trustee shall join with the Issuer and the Guarantors in the
execution of any amended or supplemental indenture authorized or permitted by
the terms of this Indenture and to make any further appropriate agreements and
stipulations that may be therein contained, but the Trustee shall not be
obligated to enter into such amended or supplemental indenture that affects its
own rights, duties or immunities under this Indenture or otherwise.
Notwithstanding the foregoing, no Opinion of Counsel shall be required in
connection with the addition of a Guarantor under this Indenture upon execution
and delivery by such Guarantor and the Trustee of a supplemental indenture to
this Indenture, the form of which is attached as Exhibit D
hereto, and delivery of an Officer’s Certificate.

     

    Section
9.02 With Consent of Holders of
Notes

     

    
      	
              .

            

    

     

    Except as
provided below in this Section 9.02, the Issuer, the Guarantors and the
Trustee may amend or supplement this Indenture, the Notes, the Guarantees and
the Security Documents relating to the Notes with the consent of the Holders of
at least a majority in aggregate principal amount of the Notes (including
Additional Notes) then outstanding voting as a single class (including, without
limitation, consents obtained in connection with a purchase of, or tender offer
or exchange offer for, the Notes) and, subject to Sections 6.04 and 6.07 hereof,
any existing Default or Event of Default (other than a Default or Event of
Default in the payment of the principal, premium and interest and Additional
Interest, if any, on the Notes, except a payment default resulting from an
acceleration that has been rescinded) or compliance with any provision of this
Indenture, the Notes, the Guarantees or the Security Documents relating to the
Notes may be waived with the consent of the Holders of at least a majority in
aggregate principal amount of the Notes (including Additional Notes) then
outstanding voting as a single class (including consents obtained in connection
with a purchase of, or tender offer or exchange offer for, Notes) other than
Notes beneficially owned by the Issuer or its Affiliates.  Section
2.08 hereof and Section 2.09 hereof shall determine which Notes are considered
to be “outstanding” for the purpose of this Section 9.02.

     

    Upon the
request of the Issuer accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture, and
upon the filing with the Trustee of evidence satisfactory to the Trustee of the
consent of the Holders of at least a majority in aggregate principal amount of
the Notes as aforesaid, and upon receipt by the Trustee of the documents
described in Sections 7.02 and 13.04 hereof, the Trustee shall join with the
Issuer in the execution of such amended or supplemental indenture unless such
amended or supplemental indenture directly affects the Trustee’s own rights,
duties or immunities under this Indenture or otherwise, in which case the
Trustee may in its discretion, but shall not be obligated to, enter into such
amended or supplemental indenture.

     

    It shall
not be necessary for the consent of the Holders of the Notes under this
Section 9.02 to approve the particular form of any proposed amendment or
waiver, but it shall be sufficient if such consent approves the substance
thereof.

     

    After an
amendment, supplement or waiver under this Section 9.02 becomes effective,
the Issuer shall mail to the Holders of Notes affected thereby a notice briefly
describing the amendment, supplement or waiver.  Any failure of the
Issuer to mail such notice, or any defect therein, shall not, however, in any
way impair or affect the validity of any such amended or supplemental indenture
or waiver.

     

    Without
the consent of each affected Holder of Notes, an amendment or waiver under this
Section 9.02 may not (with respect to any Notes held by a non-consenting
Holder):

     

    (1) reduce
the principal amount of such Notes whose Holders must consent to an amendment,
supplement or waiver;

     

    (2) reduce
the principal of or change the fixed final maturity of any such Note or alter or
waive the provisions with respect to the redemption of such Notes (for the
avoidance of doubt, the provisions contained in and relating to
Section 3.09, Section 4.10 and Section 4.14 hereof are not
redemptions of Notes);

     

    (3) reduce
the rate of or change the time for payment of interest on any Note;

     

    (4) waive a
Default in the payment of principal of or premium, if any, or interest on the
Notes, except a rescission of acceleration of the Notes by the Holders of at
least a majority in aggregate principal amount of the Notes and a waiver of the
payment default that resulted from such acceleration, or in respect of a
covenant or provision contained in this Indenture or any Guarantee which cannot
be amended or modified without the consent of all Holders;

     

    (5) make any
Note payable in money other than that stated therein;

     

    (6) make any
change in the provisions of this Indenture relating to waivers of past Defaults
or the rights of Holders to receive payments of principal or premium, if any, or
interest on the Notes;

     

    (7) make any
change in these amendment and waiver provisions;

     

    (8) impair
the right of any Holder to receive payment of principal, or interest on such
Holder’s Notes on or after the due dates therefor or to institute suit for the
enforcement of any payment on or with respect to such Holder’s
Notes;

     

    (9) make any
change to or modify the ranking provisions of this Indenture or the Notes that
would adversely affect the Holders; or

     

    (10) except as
expressly permitted by this Indenture, modify the Guarantees of any Significant
Subsidiary in any manner adverse to the Holders of the Notes.

     

    In addition, without the consent of at
least a majority in aggregate principal amount of the Notes then outstanding, an
amendment, supplement or waiver may not modify any Security Document relating to
the Notes or the provisions of this Indenture dealing with the Security
Documents or application of trust moneys in any manner materially adverse to the
Holders other than in accordance with this Indenture and the Security
Documents.  Without the consent of at least 662/3% in
aggregate principal amount of the Notes then outstanding, no amendment,
supplement or waiver may modify the Security Documents to release all or
substantially all of the Collateral securing the Notes.  Without the
consent of at least a majority in aggregate principal amount of the Notes then
outstanding, no amendment, supplement or waiver may modify the Security
Documents to release less than all or substantially all of the Collateral
securing the Notes.

    

    Section
9.03 Compliance with Trust
Indenture Act

     

    
      	
              .

            

    

     

    Every
amendment or supplement to this Indenture or the Notes shall be set forth in an
amended or supplemental indenture that complies with the Trust Indenture Act as
then in effect.

     

    Section
9.04 Revocation and Effect of
Consents

     

    
      	
              .

            

    

     

    Until an
amendment, supplement or waiver becomes effective, a consent to it by a Holder
of a Note is a continuing consent by the Holder of a Note and every subsequent
Holder of a Note or portion of a Note that evidences the same debt as the
consenting Holder’s Note, even if notation of the consent is not made on any
Note.  However, any such Holder of a Note or subsequent Holder of a
Note may revoke the consent as to its Note if the Trustee receives written
notice of revocation before the date the waiver, supplement or amendment becomes
effective.  Except as provided in the last paragraph of Section 9.02
hereof, an amendment, supplement or waiver becomes effective in accordance with
its terms and thereafter binds every Holder.

     

    The
Issuer may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to consent to any amendment, supplement, or
waiver.  If a record date is fixed, then, notwithstanding the
preceding paragraph, those Persons who were Holders at such record date (or
their duly designated proxies), and only such Persons, shall be entitled to
consent to such amendment, supplement, or waiver or to revoke any consent
previously given, whether or not such Persons continue to be Holders after such
record date.  No such consent shall be valid or effective for more
than 120 days after such record date unless the consent of the requisite number
of Holders has been obtained.

     

    Section
9.05 Notation on or Exchange of
Notes.

     

    The
Trustee may place an appropriate notation about an amendment, supplement or
waiver on any Note thereafter authenticated.  The Issuer in exchange
for all Notes may issue and the Trustee shall, upon receipt of a Issuer
Authentication Order, authenticate new Notes that reflect the amendment,
supplement or waiver.

     

    Failure
to make the appropriate notation or issue a new Note shall not affect the
validity and effect of such amendment, supplement or waiver.

     

    Section
9.06 Trustee to Sign Amendments,
etc.

     

    The
Trustee shall sign any amendment, supplement or waiver authorized pursuant to
this Article 9 if the amendment or supplement does not adversely affect the
rights, duties, liabilities or immunities of the Trustee.  The Issuer
may not sign an amendment, supplement or waiver until the Board of Directors
approves it.  In executing any amendment, supplement or waiver, the
Trustee shall be entitled to receive and (subject to Section 7.01 hereof)
shall be fully protected in relying upon, in addition to the documents required
by Section 13.04 hereof, an Officer’s Certificate and an Opinion of Counsel
stating that the execution of such amended or supplemental indenture is
authorized or permitted by this Indenture and that such amendment, supplement or
waiver is the legal, valid and binding obligation of the Issuer and any
Guarantors party thereto, enforceable against them in accordance with its terms,
subject to customary exceptions, and complies with the provisions hereof
(including Section 9.03 hereof). Notwithstanding the foregoing, no Opinion
of Counsel shall be required for the Trustee to execute any amendment or
supplement adding a new Guarantor under this Indenture.

     

    ARTICLE
10

     

    

     

    COLLATERAL
AND SECURITY

     

    Section
10.01 Equal and Ratable Sharing of
Collateral by Holders of Parity Lien Debt.

     

    (a) Notwithstanding:

     

    (1) anything
contained in the Collateral Trust Agreement or in any other Security
Document;

     

    (2) the time
of incurrence of any Series of Parity Lien Debt;

     

    (3) the order
or method of attachment or perfection of any Liens securing any Series of Parity
Lien Debt;

     

    (4) the time
or order of filing or recording of financing statements or other documents filed
or recorded to perfect any Parity Lien upon any Collateral;

     

    (5) the time
of taking possession or control over any Collateral;

     

    (6) that any
Parity Lien may not have been perfected or may be or have become subordinated,
by equitable subordination or otherwise, to any other Lien; or

     

    (7) the rules
for determining priority under any law governing relative priorities of
Liens,

     

    all
Parity Liens granted at any time by EFIH shall secure, equally and ratably, all
present and future Parity Lien Obligations.

     

    (b) Section 10.01(a)
hereof is intended for the benefit of, and shall be enforceable as a third party
beneficiary by, each present and future holder of Parity Lien Obligations, each
present and future Parity Lien Representative and the Collateral Trustee as
holder of Parity Liens.

     

    Section
10.02 Ranking of Parity
Liens.

     

    (a) The
Issuer shall, and shall cause EFIH to, ensure that the Junior Lien Documents, if
any, provide that, notwithstanding:

     

    (1) anything
to the contrary contained in the Security Documents;

     

    (2) the time
of incurrence of any Series of Parity Lien Debt;

     

    (3) the order
or method of attachment or perfection of any Liens securing any Series of Parity
Lien Debt;

     

    (4) the time
or order of filing or recording of financing statements or other documents filed
or recorded to perfect any Lien upon any Collateral;

     

    (5) the time
of taking possession or control over any Collateral;

     

    (6) that any
Parity Lien may not have been perfected or may be or have become subordinated,
by equitable subordination or otherwise, to any other Lien; or

     

    (7) the rules
for determining priority under any law governing relative priorities of
Liens,

     

    all
Junior Liens at any time granted by EFIH shall be subject and subordinate to all
Parity Liens securing Parity Lien Obligations.

     

    (b) All
Junior Lien Documents, if any, shall provide that the provisions described in
Section 10.02(a) hereof are intended for the benefit of, and shall be
enforceable as a third party beneficiary by, each present and future holder of
Parity Lien Obligations, each present and future Parity Lien Representative and
the Collateral Trustee as holder of Parity Liens.

     

    Section
10.03 Relative Rights.

     

    The
Issuer shall, and shall cause EFIH to, ensure that nothing in any Junior Lien
Document shall:

     

    (1) impair,
as between EFIH and the Holders of the Notes, the obligation of EFIH to pay
principal, premium, if any, and interest and Additional Interest, if any, on the
Notes in accordance with the terms of its Guarantee thereof or any other
obligation of EFIH under this Indenture;

     

    (2) affect
the relative rights of Holders of Notes as against any other creditors of EFIH
(other than holders of Junior Liens or other Parity Liens);

     

    (3) restrict
the right of any Holder of Notes to sue for payments that are then due and owing
(but not enforce any judgment in respect thereof against any Collateral to the
extent specifically prohibited by the provisions of the Collateral Trust
Agreement;

     

    (4) restrict
or prevent any Holder of Notes or holder of other Parity Lien Obligations, the
Collateral Trustee or any other Person from exercising any of its rights or
remedies upon a Default or Event of Default not specifically restricted or
prohibited by the provisions of the Collateral Trust Agreement; or

     

    (5) restrict
or prevent any Holder of Notes or holder of other Parity Lien Obligations, the
Trustee, the Collateral Trustee or any other Person from taking any lawful
action in an insolvency or liquidation proceeding not specifically restricted or
prohibited by the provisions of the Collateral Trust Agreement.

     

    Section
10.04 Security
Documents.

     

    EFIH’s
Guarantee of the due and punctual payment of the principal, premium, if any, and
interest (including any Additional Interest) on the Notes when and as the same
shall be due and payable, whether on an Interest Payment Date, at maturity, by
acceleration, repurchase, redemption or otherwise, and interest on the overdue
principal, premium, if any, and interest (to the extent permitted by law), on
the Notes and performance of all other Obligations of EFIH to the Holders of
Notes or the Trustee under this Indenture and the Notes (including, without
limitation, its Guarantee thereof), according to the terms hereunder or
thereunder, are secured as provided in the Pledge Agreement and the Collateral
Trust Agreement.  Each Holder of Notes, by its acceptance thereof,
consents and agrees to the terms of the Pledge Agreement and Collateral Trust
Agreement (including, without limitation, the provisions providing for
foreclosure and release of Collateral) as the same may be in effect or may be
amended from time to time in accordance with their terms and authorizes and
directs the Collateral Trustee and/or the Trustee (as the case may be) to enter
into the Pledge Agreement, the Collateral Trust Agreement and any other Security
Document and to perform its obligations and exercise its rights thereunder in
accordance therewith.

     

    EFIH, at
its own expense, shall deliver to the Trustee copies of all documents delivered
to the Collateral Trustee pursuant to the Pledge Agreement and Collateral Trust
Agreement, and shall do or cause to be done all such acts and things as may be
necessary or proper, or as may be required by the provisions of the Pledge
Agreement or the Collateral Trust Agreement, to assure and confirm to the
Trustee and the Collateral Trustee the security interest in the Collateral
contemplated hereby, by the Pledge Agreement or any part thereof, as from time
to time constituted, so as to render the same available for the security and
benefit of this Indenture and of the Notes secured hereby, according to the
intent and purposes herein expressed.  Subject to the terms of the
Pledge Agreement, EFIH, at its own expense, shall take, upon request of the
Trustee, any and all actions reasonably required to cause the Pledge Agreement
to create and maintain, as security for the Obligations of EFIH hereunder, a
valid and enforceable perfected Lien in and on all the Collateral, in favor of
the Collateral Trustee for the benefit of the Holders of Notes and future
permitted Parity Lien Obligations, superior to and prior to the rights of all
third Persons and subject to no other Liens other than Permitted
Liens.

     

    Section
10.05 Recording and
Opinions.

     

    The
Issuer shall comply with the provisions of TIA §314(b) (including, without
limitation, the provision of an initial and annual Opinion of Counsel under TIA
§314(b)); provided, that the
Issuer shall not be required to comply with TIA §314(b)(i) until this Indenture
is qualified pursuant to the TIA. Following such qualification, to the extent
the Issuer is required to furnish to the Trustee an Opinion of Counsel pursuant
to TIA §314(b)(2), the Issuer shall furnish such opinion not more than 60 but
not less than 30 days prior to each December 31.

     

    Section
10.06 Release of
Collateral.

     

    (a) The
Collateral Trustee’s Liens upon the Collateral shall no longer secure the Notes
and Guarantees outstanding under this Indenture or any other Obligations under
this Indenture, and the right of the Holders of the Notes and such Obligations
to the benefits and proceeds of the Collateral Trustee’s Liens on the Collateral
shall terminate and be discharged:

     

    (1) upon
satisfaction and discharge of this Indenture in accordance with Article 12
hereof;

     

    (2) upon a
Legal Defeasance or Covenant Defeasance of the Notes in accordance with Article
8 hereof;

     

    (3) upon
payment in full of the Notes and all other Note Obligations that are
outstanding, due and payable at the time the Notes are paid in
full;

     

    (4) in whole
or in part, with the consent of the Holders of the requisite percentage of
Secured Lien Debt and/or Parity Lien Debt in accordance with the provisions set
forth in the Security Documents, and upon delivery of instructions and any other
documentation, in each case as required by this Indenture and the Security
Documents, in a form satisfactory to the Collateral Trustee; or

     

    (5) in whole
or in part as the result of a sale, transfer or other disposition in any
transaction or other circumstance that is not prohibited by this Indenture or
any applicable Secured Debt Document, at the time of, or immediately prior to,
such sale, transfer or other disposition; provided that the
Issuer shall have delivered an Officer’s Certificate to the Collateral Trustee
certifying that such sale, transfer or other disposition does not violate the
terms of this Indenture or any applicable Secured Debt Document.

     

    (b) To the
extent applicable, the Issuer shall cause TIA §313(b), relating to reports, and
TIA §314(d), relating to the release of property or securities or relating to
the substitution therefore of any property or securities to be subjected to the
Lien created by the Security Documents, to be complied with.  Any
certificate or opinion required by TIA §314(d) may be made by an Officer of the
Issuer except in cases where TIA §314(d) requires that such certificate or
opinion be made by an independent Person, which Person shall be an independent
engineer, appraiser or other expert reasonably satisfactory to the
Trustee.  Notwithstanding anything to the contrary in this
Section 10.06(b), the Issuer shall not be required to comply with all or
any portion of TIA §314(d) if it determines, in good faith based on advice of
counsel, that under the terms of TIA §314(d) and/or any interpretation or
guidance as to the meaning thereof of the SEC and its staff, including “no
action” letters or exemptive orders, all or any portion of TIA §314(d) is
inapplicable to released Collateral.

     

    (c) To the
extent applicable, the Issuer shall furnish to the Trustee and the Collateral
Trustee, prior to each proposed release of Collateral pursuant to the Security
Documents:

     

    (1) all
documents required by TIA §314(d); and

     

    (2) an
Opinion of Counsel to the effect that such accompanying documents constitute all
documents required by TIA §314(d).

     

    Section
10.07 Authorization of Actions to
Be Taken by the Trustee Under the Security Documents

     

    
      	
              .

            

    

     

    (a) Subject
to the provisions of the Security Documents, the Trustee may (but shall have no
obligation to), in its sole discretion and without the consent of the Holders of
Notes, direct, on behalf of the Holders of Notes, the Collateral Trustee to,
take all actions it deems necessary or appropriate in order to:

     

    (1) enforce
any of the terms of the Pledge Agreement; and

     

    (2) collect
and receive any and all amounts payable in respect of the Obligations of the
Issuer hereunder.

     

    (b) The
Trustee shall have power (but shall have no obligation) to direct, on behalf of
the Holders of the Notes, the Collateral Trustee to institute and maintain such
suits and proceedings as it may deem expedient to prevent any impairment of the
Collateral by any acts that may be unlawful or in violation of the Pledge
Agreement or this Indenture, and such suits and proceedings as the Trustee may
deem expedient to preserve or protect its interests and the interests of the
Holders of Notes in the Collateral (including power to institute and maintain
suits or proceedings to restrain the enforcement of or compliance with any
legislative or other governmental enactment, rule or order that may be
unconstitutional or otherwise invalid if the enforcement of, or compliance with,
such enactment, rule or order would impair the security interest hereunder or be
prejudicial to the interests of the Holders of Notes or of the
Trustee).

     

    Section
10.08 Authorization of Receipt of
Funds by the Trustee under the Pledge Agreement.

     

    The
Trustee is authorized to receive any funds for the benefit of the Holders of
Notes distributed under the Pledge Agreement and/or the Collateral Trust
Agreement, and to make further distributions of such funds to the Holders of
Notes according to the provisions of this Indenture.

     

    Section
10.09 Lien Sharing and Priority
Confirmation.

     

    The
Trustee agrees for itself and on behalf of the Holders of the Notes, and by
holding Notes each such Holder shall be deemed to agree:

     

    (a) for the
enforceable benefit of all holders of each existing and future Series of Parity
Lien Debt and each existing and future Parity Lien Representative, that all
Parity Lien Obligations shall be and are secured equally and ratably by all
Parity Liens at any time granted by the Issuer or any Guarantor to secure any
Obligations in respect of this Indenture, the Notes and the Guarantees, and that
all such Parity Liens shall be enforceable by the Collateral Trustee for the
benefit of all holders of Parity Lien Obligations equally and
ratably;

     

    (b) for the
enforceable benefit of all holders of each existing and future Series of Parity
Lien Debt and Series of Junior Lien Debt, and each existing and future Parity
Lien Representative and Junior Lien Representative, that the holders of
Obligations in respect of this Indenture, the Notes and the Guarantees are bound
by the provisions of the Collateral Trust Agreement, including the provisions
relating to the ranking of Parity Liens and the order of application of proceeds
from enforcement of Parity Liens; and

     

    (c) to
consent to and direct the Collateral Trustee to perform its obligations under
the Collateral Trust Agreement and the other Security Documents in respect of
this Indenture, the Notes and the Guarantees.

     

    Section
10.10 Voting.

     

    In
connection with any matter under the Collateral Trust Agreement requiring a vote
of holders of Secured Lien Debt, the Holders shall cast their votes in
accordance with this Indenture.  The amount of the Notes to be voted
by the Holders shall equal the aggregate outstanding principal amount of the
Notes outstanding at the time of such vote.  Following and in
accordance with the outcome of the applicable vote under this Indenture, the
Trustee shall vote the total amount of the Notes as a block in respect of any
vote under the Collateral Trust Agreement.

     

    Section
10.11 Limitation on Duty of
Trustee in Respect of Collateral; Indemnification.

     

    (a)           Beyond
the exercise of reasonable care in the custody thereof, the Trustee shall have
no duty as to any Collateral in its possession or control or in the possession
or control of any agent or bailee or any income thereon or as to preservation of
rights against prior parties or any other rights pertaining thereto and the
Trustee shall not be responsible for filing any financing or continuation
statements or recording any documents or instruments in any public office at any
time or times or otherwise perfecting or maintaining the perfection of any
security interest in the Collateral.  The Trustee shall be deemed to
have exercised reasonable care in the custody of the Collateral in its
possession if the Collateral is accorded treatment substantially equal to that
which it accords its own property and shall not be liable or responsible for any
loss or diminution in the value of any of the Collateral, by reason of the act
or omission of any carrier, forwarding agency or other agent or bailee selected
by the Trustee in good faith.

     

    (b)           The
Trustee shall not be responsible for the existence, genuineness or value of any
of the Collateral or for the validity, perfection, priority or enforceability of
the Liens in any of the Collateral, whether impaired by operation of law or by
reason of any action or omission to act on its part hereunder, except to the
extent such action or omission constitutes gross negligence, bad faith or
willful misconduct on the part of the Trustee, for the validity or sufficiency
of the Collateral or any agreement or assignment contained therein, for the
validity of the title of the Issuer to the Collateral, for insuring the
Collateral or for the payment of taxes, charges, assessments or Liens upon the
Collateral or otherwise as to the maintenance of the Collateral.  The
Trustee shall have no duty to ascertain or inquire as to the performance or
observance of any of the terms of this Indenture, the Collateral Trust Agreement
or the Security Documents by the Issuer, the Guarantors, the Secured Debt
Representatives or the Collateral Trustee.

     

    Section
10.12 Asset Sale Cash Collateral
Account.

     

    EFIH
shall establish an Asset Sale Cash Collateral Account with the Collateral
Trustee prior to any Asset Sale of Collateral or other Oncor-related
Assets.  The Collateral Trustee shall have sole dominion and control
over any Asset Sale Cash Collateral Account and EFIH shall not have any right to
withdraw funds from such Asset Sale Cash Collateral Account, except in
accordance with the provisions of this Section 10.12 and Section 4.10
hereof.  Any Asset Sale Cash Collateral Account shall be a securities
account, as defined in the Uniform Commercial Code.  The Collateral
Trustee shall have no duty to inquire as to whether any funds deposited into an
Asset Sale Cash Collateral Account are entitled to be so deposited and may
conclusively assume that any such deposit by or on behalf of EFIH is
proper.  Prior to the occurrence of an Event of Default, EFIH shall
have the right to direct investment of the funds held in an Asset Sale Cash
Collateral Account or the liquidation of any such investments; provided, however, that any
such investment shall only be permitted to the extent it is in the form of Cash
Equivalents.  Any investment direction or direction as to the
liquidation of investments shall be in writing and signed by an Officer of EFIH,
shall specify the particular investment to be made or liquidated and shall state
that any investment or liquidation to be made in accordance with such direction
is permitted hereby.  The Collateral Trustee shall have no liability
for any losses incurred in connection with the making or liquidation of any
investment in accordance with this Section 10.12.  Any investment in a
fund referred to in clause (8) of the definition of “Cash Equivalents” may
include money market funds with respect to which the Collateral Trustee or an
Affiliate of the Collateral Trustee acts as an investment manager or advisor and
with respect to which it may receive fees for the administration.  The
funds held in an Asset Sale Cash Collateral Account shall be released in
accordance with clauses (1) and/or (2) of Section 4.10(f)
hereof.  Such funds shall also be released to repurchase Notes and to
make related payments in connection with a Collateral Asset Sale Offer pursuant
to Section 4.10(h) hereof and/or upon consummation of any Collateral Asset Sale
Offer, whether or not any Collateral Excess Proceeds remain.  EFIH
shall deliver to the Trustee and the Collateral Trustee an Officer's Certificate
stating that such release was permitted by Section 4.10 hereof, except in the
case of the payment of scheduled interest payments on the Notes and/or other
Parity Lien Obligations in accordance with Section 4.10(f).

     

    Section
10.13 Collateral Trustee a Third
Party Beneficiary.

     

    This
Article 10 is intended for the benefit of, and shall be enforceable as a third
party beneficiary by, the Collateral Trustee as holder of Parity
Liens.

     

    

    ARTICLE
11

     

    

     

    GUARANTEES

     

    Section
11.01 Guarantee

     

    
      	
              .

            

    

     

    Subject
to this Article 11, each of the Guarantors hereby, jointly and severally, fully
and unconditionally guarantees to each Holder of a Note authenticated and
delivered by the Trustee and to the Trustee and its successors and assigns,
irrespective of the validity and enforceability of this Indenture, the Notes or
the obligations of the Issuer hereunder or thereunder, that:  (a) the
principal, premium and interest and Additional Interest, if any, on, the Notes
shall be promptly paid in full when due, whether at maturity, by acceleration,
redemption or otherwise, and interest on the overdue principal of and interest
on the Notes, if any, if lawful, and all other obligations of the Issuer to the
Holders or the Trustee hereunder or thereunder shall be promptly paid in full or
performed, all in accordance with the terms hereof and thereof; and (b) in case
of any extension of time of payment or renewal of any Notes or any of such other
obligations, that same shall be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at stated
maturity, by acceleration or otherwise. Failing payment when due of any amount
so guaranteed or any performance so guaranteed for whatever reason, the
Guarantors shall be jointly and severally obligated to pay the same
immediately.  Each Guarantor agrees that this is a guarantee of
payment and not a guarantee of collection.

     

    The
Guarantors hereby agree that their obligations hereunder shall be unconditional,
irrespective of the validity, regularity or enforceability of the Notes or this
Indenture, the absence of any action to enforce the same, any waiver or consent
by any Holder of the Notes with respect to any provisions hereof or thereof, the
recovery of any judgment against the Issuer, any action to enforce the same or
any other circumstance which might otherwise constitute a legal or equitable
discharge or defense of a guarantor.  Each Guarantor hereby waives
diligence, presentment, demand of payment, filing of claims with a court in the
event of insolvency or bankruptcy of the Issuer, any right to require a
proceeding first against the Issuer, protest, notice and all demands whatsoever
and covenants that this Guarantee shall not be discharged except by complete
performance of the obligations contained in the Notes and this
Indenture.

     

    Each
Guarantor also agrees to pay any and all costs and expenses (including
reasonable attorneys’ fees) incurred by the Trustee or any Holder in enforcing
any rights under this Section 11.01.

     

    If any
Holder or the Trustee is required by any court or otherwise to return to the
Issuer, any of the Guarantors, or any custodian, trustee, liquidator or other
similar official acting in relation to either the Issuer or any of the
Guarantors, any amount paid either to the Trustee or such Holder, this
Guarantee, to the extent theretofore discharged, shall be reinstated in full
force and effect.

     

    Each
Guarantor agrees that it shall not be entitled to any right of subrogation in
relation to the Holders in respect of any obligations guaranteed hereby until
payment in full of all obligations guaranteed hereby.  Each Guarantor
further agrees that, as between the Guarantors, on the one hand, and the Holders
and the Trustee, on the other hand, (x) the maturity of the obligations
guaranteed hereby may be accelerated as provided in Article 6 hereof for the
purposes of this Guarantee, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (y) in the event of any declaration of acceleration of
such obligations as provided in Article 6 hereof, such obligations (whether or
not due and payable) shall forthwith become due and payable by the Guarantors
for the purpose of this Guarantee.  The Guarantors shall have the
right to seek contribution from any non-paying Guarantor so long as the exercise
of such right does not impair the rights of the Holders under the
Guarantees.

     

    Each
Guarantee shall remain in full force and effect and continue to be effective
should any petition be filed by or against the Issuer for liquidation,
reorganization, should the Issuer become insolvent or make an assignment for the
benefit of creditors or should a receiver or trustee be appointed for all or any
significant part of the Issuer’s assets, and shall, to the fullest extent
permitted by law, continue to be effective or be reinstated, as the case may be,
if at any time payment and performance of the Notes are, pursuant to applicable
law, rescinded or reduced in amount, or must otherwise be restored or returned
by any obligee on the Notes or Guarantees, whether as a “voidable preference,”
“fraudulent transfer” or otherwise, all as though such payment or performance
had not been made. In the event that any payment or any part thereof, is
rescinded, reduced, restored or returned, the Notes shall, to the fullest extent
permitted by law, be reinstated and deemed reduced only by such amount paid and
not so rescinded, reduced, restored or returned.

     

    In case
any provision of any Guarantee 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.

     

    The
Guarantees shall rank equally in right of payment with all existing and future
Senior Indebtedness of the Guarantor.  The Guarantees shall be senior
in right of payment to all existing and future Subordinated Indebtedness of each
Guarantor.

     

    Each
payment to be made by a Guarantor in respect of its Guarantee shall be made
without set-off, counterclaim, reduction or diminution of any kind or
nature.

     

    Section
11.02 Limitation on Guarantor
Liability

     

    
      	
              .

            

    

     

    Each
Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it
is the intention of all such parties that the Guarantee of such Guarantor not
constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law,
the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or
any similar federal or state law to the extent applicable to any
Guarantee.  To effectuate the foregoing intention, the Trustee, the
Holders and the Guarantors hereby irrevocably agree that the obligations of each
Guarantor shall be limited to the maximum amount as shall, after giving effect
to such maximum amount and all other contingent and fixed liabilities of such
Guarantor that are relevant under such laws and after giving effect to any
collections from, rights to receive contribution from or payments made by or on
behalf of any other Guarantor in respect of the obligations of such other
Guarantor under this Article 11, result in the obligations of such Guarantor
under its Guarantee not constituting a fraudulent conveyance or fraudulent
transfer under applicable law.  Each Guarantor that makes a payment
under its Guarantee shall be entitled upon payment in full of all guaranteed
obligations under this Indenture to a contribution from each other Guarantor in
an amount equal to such other Guarantor’s pro rata portion of such
payment based on the respective net assets of all the Guarantors at the time of
such payment determined in accordance with GAAP.

     

    Section
11.03 Execution and
Delivery

     

    
      	
              .

            

    

     

    To
evidence its Guarantee set forth in Section 11.01 hereof, each Guarantor
hereby agrees that this Indenture shall be executed on behalf of such Guarantor
by an Officer or person holding an equivalent title.

     

    Each
Guarantor hereby agrees that its Guarantee set forth in Section 11.01
hereof shall remain in full force and effect notwithstanding the absence of the
endorsement of any notation of such Guarantee on the Notes.

     

    If an
Officer whose signature is on this Indenture no longer holds that office at the
time the Trustee authenticates the Note, the Guarantee shall be valid
nevertheless.

     

    The
delivery of any Note by the Trustee, after the authentication thereof hereunder,
shall constitute due delivery of the Guarantee set forth in this Indenture on
behalf of the Guarantors.

     

    If
required by Section 4.15 hereof, the Issuer shall cause any newly created
or acquired Restricted Subsidiary to comply with the provisions of
Section 4.15 hereof and this Article 11, to the extent
applicable.

     

    Section
11.04 Subrogation

     

    
      	
              .

            

    

     

    Each
Guarantor shall be subrogated to all rights of Holders of Notes against the
Issuer in respect of any amounts paid by any Guarantor pursuant to the
provisions of Section 11.01 hereof; provided that, if an
Event of Default has occurred and is continuing, no Guarantor shall be entitled
to enforce or receive any payments arising out of, or based upon, such right of
subrogation until all amounts then due and payable by the Issuer under this
Indenture or the Notes shall have been paid in full.

     

    Section
11.05 Benefits
Acknowledged

     

    
      	
              .

            

    

     

    Each
Guarantor acknowledges that it shall receive direct and indirect benefits from
the financing arrangements contemplated by this Indenture and that the guarantee
and waivers made by it pursuant to its Guarantee are knowingly made in
contemplation of such benefits.

     

    Section
11.06 Release of
Guarantees

     

    (a) A
Guarantee by a Guarantor shall be automatically and unconditionally released and
discharged, and no further action by such Guarantor, the Issuer or the Trustee
is required for the release of such Guarantor’s Guarantee, upon:

     

    (1) any sale,
exchange or transfer (by merger, wind-up, consolidation or otherwise) of the
Capital Stock of such Guarantor (including any sale, exchange or transfer),
after which the applicable Guarantor is no longer a Restricted Subsidiary or
sale of all or substantially all the assets of such Guarantor, which sale,
exchange or transfer is made in compliance with the applicable provisions of
this Indenture, except that the Guarantee by EFIH shall only be released and
discharged as provided in Section 4.16 hereof;

     

    (2) the
release or discharge of the guarantee by such Guarantor that resulted in the
creation of such Guarantee, except a discharge or release by or as a result of
payment under such guarantee;

     

    (3) the
designation of any Restricted Subsidiary that is a Guarantor as an Unrestricted
Subsidiary in compliance with Section 4.07 hereof and the definition of
“Unrestricted Subsidiary” hereunder; or

     

    (4) the
exercise by the Issuer of its Legal Defeasance option or Covenant Defeasance
option in accordance with Article 8 hereof or the Issuer’s obligations under
this Indenture being discharged in accordance with the terms of this
Indenture;

     

    
      	
              provided that
      such Guarantor shall have delivered to the Trustee an Officer’s
      Certificate and an Opinion of Counsel, each stating that all conditions
      precedent provided for in this Indenture relating to such transaction have
      been complied with.

            

    

     

    (b) In the
case of a Permitted Asset Transfer described in clause (2) of the definition of
“Permitted Asset Transfer,”  or a Permitted Asset Transfer described
in clause (1) of the definition of “Permitted Asset Transfer” by way of merger,
wind-up or consolidation, the Guarantee by EFIH shall be automatically released
upon the consummation of such Permitted Asset Transfer in accordance with
Section 4.16 hereof.

     

    (c) The
Guarantee by EFCH shall automatically be released in connection with a Permitted
Asset Transfer made in accordance with Section 4.16 hereof other than a merger,
wind-up or consolidation of EFIH into the Issuer where EFCH continues to be a
Subsidiary of the Issuer.

     

    ARTICLE
12

     

    

     

    SATISFACTION
AND DISCHARGE

     

    Section
12.01 Satisfaction and
Discharge

     

    
      	
              .

            

    

     

    This
Indenture shall be discharged and shall cease to be of further effect as to all
Notes, when either:

     

    (1) all Notes
theretofore authenticated and delivered, except lost, stolen or destroyed Notes
which have been replaced or paid and Notes for whose payment money has
theretofore been deposited in trust, have been delivered to the Trustee for
cancellation; or

     

    (2) (A)           all
Notes not theretofore delivered to the Trustee for cancellation have become due
and payable by reason of the making of a notice of redemption or otherwise,
shall become due and payable within one year or may be called for redemption
within one year under arrangements satisfactory to the Trustee for the giving of
notice of redemption by the Trustee in the name, and at the expense, of the
Issuer, and the Issuer or any Guarantor has irrevocably deposited or caused to
be deposited with the Trustee as trust funds in trust solely for the benefit of
the Holders of the Notes, cash in U.S. dollars, Government Securities, or a
combination thereof, in such amounts as shall be sufficient without
consideration of any reinvestment of interest to pay and discharge the entire
indebtedness on the Notes not theretofore delivered to the Trustee for
cancellation for principal, premium, if any, and accrued and unpaid interest to
the date of maturity or redemption;

     

    (B)           no
Default (other than that resulting from borrowing funds to be applied to make
such deposit and any similar and simultaneous deposit relating to other
Indebtedness and, in each case, the granting of Liens in connection therewith)
with respect to this Indenture or the Notes shall have occurred and be
continuing on the date of such deposit or shall occur as a result of such
deposit, and such deposit shall not result in a breach or violation of, or
constitute a default, under any material agreement or instrument (other than
this Indenture) to which the Issuer or any Guarantor is a party or by which the
Issuer or any Guarantor is bound (other than that resulting from borrowing funds
to be applied to make such deposit and any similar and simultaneous deposit
relating to other Indebtedness and in each case, the granting of Liens in
connection therewith);

     

    (C)           the
Issuer has paid or caused to be paid all sums payable by it under this
Indenture; and

     

    (D)           the
Issuer has delivered irrevocable instructions to the Trustee to apply the
deposited money toward the payment of the Notes at maturity or the Redemption
Date, as the case may be.

     

    In
addition, the Issuer must deliver an Officer’s Certificate and an Opinion of
Counsel to the Trustee stating that all conditions precedent to satisfaction and
discharge have been satisfied.

     

    Notwithstanding
the satisfaction and discharge of this Indenture, if money shall have been
deposited with the Trustee pursuant to subclause (A) of
clause (2) of this Section 12.01, the provisions of Section 12.02
and Section 8.06 hereof shall survive.

     

    Section
12.02 Application of Trust
Money

     

    
      	
              .

            

    

     

    Subject
to the provisions of Section 8.06 hereof, all money deposited with the
Trustee pursuant to Section 12.01 hereof shall be held in trust and applied
by it, in accordance with the provisions of the Notes and this Indenture, to the
payment, either directly or through any Paying Agent (including the Issuer
acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal (and premium) and interest and Additional
Interest, if any, for whose payment such money has been deposited with the
Trustee; but such money need not be segregated from other funds except to the
extent required by law.

     

    If the
Trustee or Paying Agent is unable to apply any money or Government Securities in
accordance with Section 12.01 hereof by reason of any legal proceeding or
by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the Issuer’s
and any Guarantor’s obligations under this Indenture and the Notes shall be
revived and reinstated as though no deposit had occurred pursuant to
Section 12.01 hereof; provided that if the
Issuer has made any payment of principal, premium, interest or Additional
Interest on any Notes because of the reinstatement of its obligations, the
Issuer shall be subrogated to the rights of the Holders of such Notes to receive
such payment from the money or Government Securities held by the Trustee or
Paying Agent.

     

    ARTICLE
13

     

    

     

    MISCELLANEOUS

     

    Section
13.01 Trust Indenture Act
Controls

     

    
      	
              .

            

    

     

    If any
provision of this Indenture limits, qualifies or conflicts with the duties
imposed by Trust Indenture Act § 318(c), the imposed duties shall
control.

     

    Section
13.02 Notices

     

    
      	
              .

            

    

     

    Any
notice or communication by the Issuer, any Guarantor or the Trustee to the
others is duly given if in writing and delivered in Person or by first class
mail (registered or certified, return receipt requested), facsimile transmission
or overnight air courier guaranteeing next day delivery, to the others’
address:

     

    
      	
              If
      to the Issuer and/or any Guarantor:

            
	 
      
	
              Energy
      Future Holdings Corp.

            
	
              Energy
      Plaza

            
	
              1601
      Bryan Street

            
	
              Dallas,
      Texas 75201-3411

            
	
              Facsimile
      No.:  (214) 812-6032

            
	
              Attention:
      General Counsel

            
	
              and

            
	
              Facsimile
      No.:  (214) 812-4097

            
	
              Attention:  Treasurer

            
	 
      
	
              With
      a copy to:

            
	
              Simpson
      Thacher & Bartlett LLP

            
	
              425
      Lexington Avenue

            
	
              New
      York, New York 100017

            
	
              Facsimile
      No.:  (212) 455-2502

            
	
              Attention:  Edward
      P. Tolley III

            
	 
      
	
              If
      to the Trustee:

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

            
	
              Corporate
      Trust Division

            
	
              601
      Travis Street - 16th Floor

            
	
              Houston,
      TX 77002

            
	
              Facsimile
      No.:  (713) 483-6954

            
	
              Attention:  EFH
      Senior Secured Notes Trustee

            
	 
      
	
              To
      surrender Definitive Notes:

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

            
	
              c/o
      The Bank of New York Mellon

            
	
              101
      Barclay Street -- 7 East

            
	
              New
      York, NY 10286

            
	
              Facsimile
      no.: (212) 298-1915

            
	
              Attention:
      EFH Senior Secured Notes Trustee

            

    

    

    The
Issuer, any Guarantor, or the Trustee, by notice to the others, may designate
additional or different addresses for subsequent notices or
communications.

     

    All
notices and communications (other than those sent to Holders) shall be deemed to
have been duly given:  at the time delivered by hand, if personally
delivered; five calendar days after being deposited in the mail postage prepaid,
if mailed; when receipt acknowledged, if transmitted by facsimile; and the next
Business Day after timely delivery to the courier, if sent by overnight air
courier guaranteeing next day delivery; provided that any
notice or communication delivered to the Trustee shall be deemed effective upon
actual receipt thereof.

     

    Any
notice or communication to a Holder shall be mailed by first class mail,
certified or registered, return receipt requested, or by overnight air courier
guaranteeing next day delivery to its address shown on the register kept by the
Registrar.  Any notice or communication shall also be so mailed to any
Person described in Trust Indenture Act § 313(c), to the extent required by the
Trust Indenture Act.  Failure to mail a notice or communication to a
Holder or any defect in it shall not affect its sufficiency with respect to
other Holders.

     

    If a
notice or communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives
it.

     

    If the
Issuer mails a notice or communication to Holders, it shall mail a copy to the
Trustee and each Agent at the same time.

     

    Section
13.03 Communication by Holders of
Notes with Other Holders of Notes

     

    
      	
              .

            

    

     

    Holders
may communicate pursuant to Trust Indenture Act § 312(b) with other Holders with
respect to their rights under this Indenture or the Notes.  The
Issuer, the Trustee, the Registrar and anyone else shall have the protection of
Trust Indenture Act § 312(c).

     

    Section
13.04 Certificate and Opinion as
to Conditions Precedent

     

    
      	
              .

            

    

     

    Upon any
request or application by the Issuer or any of the Guarantors to the Trustee to
take any action under this Indenture, the Issuer or such Guarantor, as the case
may be, shall furnish to the Trustee:

     

    (a) an
Officer’s Certificate in form and substance reasonably satisfactory to the
Trustee (which shall include the statements set forth in Section 13.05
hereof) stating that, in the opinion of the signers, all conditions precedent
and covenants, if any, provided for in this Indenture relating to the proposed
action have been satisfied; and

     

    (b) an
Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
(which shall include the statements set forth in Section 13.05 hereof)
stating that, in the opinion of such counsel, all such conditions precedent and
covenants have been satisfied.

     

    Section
13.05 Statements Required in
Certificate or Opinion

     

    
      	
              .

            

    

     

    Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture (other than a certificate provided pursuant to
Section 4.04 hereof or Trust Indenture Act § 314(a)(4)) shall comply with
the provisions of Trust Indenture Act § 314(e) and shall include:

     

    (a) a
statement that the Person making such certificate or opinion has read such
covenant or condition;

     

    (b) a brief
statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are
based;

     

    (c) a
statement that, in the opinion of such Person, he or she has made such
examination or investigation as is necessary to enable him or her to express an
informed opinion as to whether or not such covenant or condition has been
complied with (and, in the case of an Opinion of Counsel, may be limited to
reliance on an Officer’s Certificate as to matters of fact); and

     

    (d) a
statement as to whether or not, in the opinion of such Person, such condition
has been satisfied or such covenant has been complied with.

     

    Section
13.06 Rules by Trustee and
Agents

     

    
      	
              .

            

    

     

    The
Trustee may make reasonable rules for action by or at a meeting of
Holders.  The Registrar or Paying Agent may make reasonable rules and
set reasonable requirements for its functions.

     

    Section
13.07 No Personal Liability of
Directors, Officers, Employees and Stockholders

     

    
      	
              .

            

    

     

    No past,
present or future director, officer, employee, incorporator or stockholder of
the Issuer or any Guarantor or any of their parent companies (other than the
Issuer and the Guarantors) shall have any liability for any obligations of the
Issuer or the Guarantors under the Notes, the Guarantees, this Indenture, the
Registration Rights Agreement or any Security Document or for any claim based
on, in respect of, or by reason of, such obligations or their
creation.  Each Holder by accepting the Notes waives and releases all
such liability.  The waiver and release are part of the consideration
for issuance of the Notes.

     

    Section
13.08 Governing
Law

     

    
      	
              .

            

    

     

    THIS
INDENTURE, THE NOTES AND THE GUARANTEES SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     

    Section
13.09 Waiver of Jury
Trial

     

    
      	
              .

            

    

     

    EACH OF
THE ISSUER, THE GUARANTORS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY
IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES
OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     

    Section
13.10 Force
Majeure

     

    
      	
              .

            

    

     

    In no
event shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations under this Indenture arising out of or caused by,
directly or indirectly, forces beyond its reasonable control, including without
limitation strikes, work stoppages, accidents, acts of war or terrorism, civil
or military disturbances, nuclear or natural catastrophes or acts of God, and
interruptions, loss or malfunctions of utilities, communications or computer
(software or hardware) services.

     

    Section
13.11 No Adverse Interpretation of
Other Agreements

     

    
      	
              .

            

    

     

    This
Indenture may not be used to interpret any other indenture, loan or debt
agreement of the Issuer or its Restricted Subsidiaries or of any other
Person.  Any such indenture, loan or debt agreement may not be used to
interpret this Indenture.

     

    Section
13.12 Successors

     

    
      	
              .

            

    

     

    All
agreements of the Issuer in this Indenture and the Notes shall bind its
successors.  All agreements of the Trustee in this Indenture shall
bind its successors.  All agreements of each Guarantor in this
Indenture shall bind its successors, except as otherwise provided in
Section 11.06 hereof.

     

    Section
13.13 Severability

     

    
      	
              .

            

    

     

    In case
any provision in this Indenture or in the Notes 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
13.14 Counterpart
Originals

     

    
      	
              .

            

    

     

    The
parties may sign any number of copies of this Indenture.  Each signed
copy shall be an original, but all of them together represent the same
agreement.

     

    Section
13.15 Table of Contents, Headings,
etc

     

    
      	
              .

            

    

     

    The Table
of Contents, Cross-Reference Table and headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not to
be considered a part of this Indenture and shall in no way modify or restrict
any of the terms or provisions hereof.

     

    Section
13.16 Qualification of
Indenture.

     

    The Issuer and the Guarantors shall
qualify this Indenture under the Trust Indenture Act in accordance with the
terms and conditions of the Registration Rights Agreement and shall pay all
reasonable costs and expenses (including attorneys’ fees and expenses for the
Issuer, the Guarantors and the Trustee) incurred in connection therewith,
including, but not limited to, costs and expenses of qualification of this
Indenture and the Notes and printing this Indenture and the
Notes.  The Trustee shall be entitled to receive from the Issuer and
the Guarantors any such Officer’s Certificates, Opinions of Counsel or other
documentation as it may reasonably request in connection with any such
qualification of this Indenture under the Trust Indenture Act.

    

     

    Section
13.17 Ring-Fencing of
Oncor

     

    
      	
              .

            

    

     

    The
Holders of the Notes, by accepting the Notes, acknowledge (i) the legal
separateness of the Issuer and the Guarantors from the Oncor Subsidiaries, (ii)
that the lenders under the Oncor Electric Delivery Facility and the noteholders
under Oncor’s existing debt instruments have likely advanced funds thereunder in
reliance upon the separateness of the Oncor Subsidiaries from the Issuer and the
Guarantors, (iii) that the Oncor Subsidiaries have assets and liabilities that
are separate from those of the Issuer and its other Subsidiaries, (iv) that the
obligations owing under the Notes are obligations and liabilities of the Issuer
and the Guarantors only, and are not the obligations or liabilities of any Oncor
Subsidiary, (v) that the Holders of the Notes shall look solely to the Issuer
and the Guarantors and their assets, and not to any assets, or to the pledge of
any assets, owned by any Oncor Subsidiary, for the repayment of any amounts
payable pursuant to the Notes and for satisfaction of any other obligations
owing to the Holders under this Indenture, the Registration Rights Agreement and
any related documents and (vi) that none of the Oncor Subsidiaries shall be
personally liable to the Holders of the Notes for any amounts payable, or any
other obligation, under this Indenture, the Registration Rights Agreement or any
related documents.

     

    The
Holders of the Notes, by accepting the Notes, shall acknowledge and agree that
the Holders of the Notes shall not (i) initiate any legal proceeding to procure
the appointment of an administrative receiver or (ii) institute any
bankruptcy, reorganization, insolvency, winding up, liquidation, or any like
proceeding under applicable law, against any Oncor Subsidiary, or against any of
the Oncor Subsidiaries’ assets.  The Holders further acknowledge and
agree that each of the Oncor Subsidiaries is a third party beneficiary of the
foregoing covenant and shall have the right to specifically enforce such
covenant in any proceeding at law or in equity.

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              Dated
      as of the date first above written

            	 
      
	 
      	 
      
	 
      	
              ENERGY
      FUTURE HOLDINGS CORP.

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              By:                                                                            

            
	 
      	
              Name:

            
	 
      	
              Title:

            
	 
      	 
      
	 
      	 
      
	 
      	
              ENERGY
      FUTURE COMPETITIVE HOLDINGS COMPANY

               

            
	 
      	
              ENERGY
      FUTURE INTERMEDIATE HOLDING COMPANY LLC

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              By:                                                                            

            
	 
      	
              Name:

            
	 
      	
              Title:

            
	 
      	 
      
	 
      	 
      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 
      	
              THE
      BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              By:                                                                            

            
	 
      	
              Name:

            
	 
      	
              Title:

            

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

     

    [Face of
Note]

     

    [Insert
the Global Note Legend, if applicable pursuant to the provisions of the
Indenture]

     

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

     

    CUSIP:    [               ] 

    ISIN:       [               ]1

    [144A]
[REGULATION S] GLOBAL NOTE

     

    10.000%
Senior Secured Notes due 2020

     

    No. [
]                                                                                                             [$______________]

     

    ENERGY
FUTURE HOLDINGS CORP.

     

    promises
to pay to CEDE & CO. or registered assigns, the principal sum [set forth on
the Schedule of Exchanges of Interests in the Global Note attached hereto] [of
________________________ United States Dollars ($[___________])] on January 15,
2020.

     

    Interest
Payment Dates:  January 15 and July 15

     

    Record
Dates:  January 1 and July 1

     

    IN
WITNESS HEREOF, the Issuer has caused this instrument to be duly
executed.

     

    Dated:
January 12, 2010

     

    
      	
              ENERGY
      FUTURE HOLDINGS CORP.

            
	 
      
	 
      
	
              By:                                                                         

            
	
              Name:

            
	
              Title:

            

    

    

    This is
one of the Notes referred to in the within-mentioned Indenture:

     

    
      	
              THE
      BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

            
	 
      
	 
      
	
              By:                                                              

            
	
              Authorized
      Signatory

            

    

    

    

      

    

      
      
        	
                 
      

              	
                1
      Rule 144A Note CUSIP:     292680
    AG0

              

      

      
        	
                 
      

              	
                   Rule
      144A Note
      ISIN:        US292680AG02

              

      

      
        	
                 
      

              	
                   Regulation
      S Note CUSIP:  U29191 AD2

              

      

      
        	
                 
      

              	
                   Regulation
      S Note
  ISIN:     USU29191AD22

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    [Back of
Note]

     

    Capitalized
terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

     

    (1)           Interest.  Energy
Future Holdings Corp., a Texas corporation (the “Issuer”), promises to
pay interest on the principal amount of this Note at 10.000% per annum from January
12, 2010 until maturity and shall pay Additional Interest, if any, payable
pursuant to the Registration Rights Agreement referred to below.  The
Issuer will pay interest and Additional Interest, if any, semi-annually in
arrears on January 15 and July 15 of each year, or if any such day is not a
Business Day, on the next succeeding Business Day (each, an “Interest Payment
Date”) without interest accruing on the amount then so payable from such
day that is not a Business Day until such Business Day.  Interest on
the Notes will accrue from the most recent date to which interest has been paid
or, if no interest has been paid, from and including the date of
issuance.  The Issuer will pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue principal and
premium, if any, from time to time on demand at the interest rate on the Notes;
it shall pay interest (including post-petition interest in any proceeding under
any Bankruptcy Law) on overdue installments of interest and Additional Interest,
if any (without regard to any applicable grace periods) from time to time on
demand at the interest rate on the Notes.  Interest will be computed
on the basis of a 360-day year comprised of twelve 30-day months.

     

    (2)           Method of
Payment.  The Issuer will pay interest on the Notes and
Additional Interest, if any, to the Persons who are registered Holders of Notes
at the close of business on the January 1 or July 1 (whether or not a Business
Day), as the case may be, next preceding the Interest Payment Date, even if such
Notes are canceled after such Record Date and on or before such Interest Payment
Date, except as provided in Section 2.12 of the Indenture with respect to
defaulted interest.  Payment of interest and Additional Interest, if
any, may be made by check mailed to the Holders at their addresses set forth in
the register of Holders; provided that payment
by wire transfer of immediately available funds will be required with respect to
principal, premium, if any, and interest and Additional Interest, if any, on,
all Global Notes and all other Notes the Holders of which shall have provided
wire transfer instructions to the Issuer or the Paying Agent.  Such
payment shall be 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.

     

    (3)           Paying
Agent and Registrar.  Initially, The Bank of New York Mellon
Trust Company, N.A., the Trustee under the Indenture, will act as Paying Agent
and Registrar.  The Issuer may change any Paying Agent or Registrar
without notice to the Holders.  The Issuer or any of its Subsidiaries
may act in any such capacity.

     

    (4)           Indenture.  The
Issuer issued the Notes under an Indenture, dated as of January 12, 2010 (the
“Indenture”),
among the Issuer, the Guarantors named therein and the Trustee.  This
Note is one of a duly authorized issue of notes of the Issuer designated as its
10.000% Senior Secured Notes due 2020 (the “Notes”).  The
Issuer shall be entitled to issue Additional Notes pursuant to Sections 2.01,
4.09 and 4.12 of the Indenture.  The terms of the Notes include those
stated in the Indenture and those made part of the Indenture by reference to the
Trust Indenture Act of 1939, as amended (the “Trust Indenture
Act”).  The Notes are subject to all such terms, and Holders
are referred to the Indenture and such Act for a statement of such
terms.  To the extent any provision of this Note conflicts with the
express provisions of the Indenture, the provisions of the Indenture shall
govern and be controlling.

     

    (5)           Optional
Redemption.

     

    (a)           Except
as set forth below, the Issuer will not be entitled to redeem Notes at its
option prior to January 15, 2015.

     

    (b)           At
any time prior to January 15, 2015, the Issuer may redeem all or a part of the
Notes, upon not less than 30 nor more than 60 days’ prior notice mailed by first
class mail to the registered address of each Holder of Notes or otherwise in
accordance with procedures of DTC, at a redemption price equal to 100% of the
principal amount of the Notes redeemed plus the Applicable
Premium, plus
accrued and unpaid interest, and Additional Interest, if any, to the date of
redemption (the “Redemption Date”),
subject to the right of Holders of Notes of record on the relevant Record Date
to receive interest due on the relevant Interest Payment Date.

     

    (c)           From
and after January 15, 2015, the Issuer may redeem the Notes, in whole or in
part, upon not less than 30 nor more than 60 days’ prior notice mailed by first
class mail to the registered address of each Holder of Notes or otherwise in
accordance with the procedures of DTC, at the redemption prices (expressed as
percentages of principal amount of the Notes to be redeemed) set forth below,
plus accrued and unpaid interest and Additional Interest, if any, to the
applicable Redemption Date, subject to the right of Holders of Notes of record
on the relevant Record Date to receive interest due on the relevant Interest
Payment Date, if redeemed during the twelve-month period beginning on January 15
of each of the years indicated below:

     

    
      	
              Year

            	
              Percentage

            
	
              2015

            	
              105.000%

            
	
              2016

            	
              103.333%

            
	
              2017

            	
              101.667%

            
	
              2018
      and thereafter

            	
              100.000%

            

    

    

    (d)           Prior
to January 15, 2013, the Issuer may, at its option, on one or more occasions,
redeem up to 35% of the aggregate principal amount of all Notes at a redemption
price equal to 110.000% of the aggregate principal amount thereof, plus accrued
and unpaid interest and Additional Interest, if any, to the Redemption Date,
subject to the right of Holders of Notes of record on the relevant Record Date
to receive interest due on the relevant Interest Payment Date, with the net cash
proceeds of one or more Equity Offerings; provided that at
least 50% of the sum of the original aggregate principal amount of Initial Notes
and any Additional Notes issued under the Indenture after the Issue Date remains
outstanding immediately after the occurrence of each such redemption; provided further that each
such redemption occurs within 90 days of the date of closing of each such Equity
Offering.  Notice of any redemption upon any Equity Offerings may be
given prior to the redemption thereof, and any such redemption or notice may, at
the Issuer’s discretion, be subject to one or more conditions precedent,
including, but not limited to, completion of the related Equity
Offering.

     

    (e)           If
the Issuer redeems less than all of the outstanding Notes, the Trustee shall
select the Notes to be redeemed in the manner described under Section 3.02
of the Indenture.

     

    (f)           Any
redemption pursuant to this paragraph 5 shall be made pursuant to the provisions
of Sections 3.01 through 3.06 of the Indenture.

     

    (6)           Mandatory
Redemption.  The Issuer shall not be required to make mandatory
redemption or sinking fund payments with respect to the Notes.

     

    (7)           Notice of
Redemption.  Subject to Section 3.03 of the Indenture,
notice of redemption will be mailed by first-class mail at least 30 days but not
more than 60 days before the Redemption Date (except that redemption notices may
be mailed more than 60 days prior to a Redemption Date if the notice is issued
in connection with Article 8 or Article 12 of the Indenture) to each Holder
whose Notes are to be redeemed at its registered address or otherwise in
accordance with the procedures of DTC.  Notes in denominations larger
than $2,000 may be redeemed in part but only in whole multiples of $1,000 in
excess thereof, unless all of the Notes held by a Holder are to be
redeemed.  On and after the Redemption Date interest ceases to accrue
on Notes or portions thereof called for redemption.

     

    (8)           Offers to
Repurchase.

     

    (a)           If
a Change of Control occurs, the Issuer shall make an offer (a “Change of Control
Offer”) to each Holder to purchase all or any part (equal to $2,000 or an
integral multiple of $1,000 in excess thereof) of each Holder’s Notes at a
purchase price equal to 101% of the aggregate principal amount thereof plus accrued and
unpaid interest and Additional Interest, if any, to the date of purchase (the
“Change of Control
Payment”), subject to the right of Holders of Notes of record on the
relevant Record Date to receive interest due on the relevant Interest Payment
Date. The Change of Control Offer shall be made in accordance with
Section 4.14 of the Indenture.

     

    (b)           If
the Issuer or any of its Restricted Subsidiaries consummates an Asset Sale
(other than an Asset Sale of Collateral or other Oncor-related Assets), within
10 Business Days of each date that the aggregate amount of Excess Proceeds
exceeds $200.0 million, the Issuer and/or any of its Restricted Subsidiaries
shall make an offer to all Holders of the Notes, and if required or permitted by
the terms of any Senior Indebtedness, to the holders of such Senior Indebtedness
(an “Asset Sale
Offer”), to purchase the maximum aggregate principal amount of the Notes
and such Senior Indebtedness that is a minimum of $2,000 or an integral multiple
of $1,000 in excess thereof that may be purchased out of the Excess Proceeds at
an offer price in cash in an amount equal to 100% of the principal amount
thereof, plus
accrued and unpaid interest and Additional Interest, if any, to the date fixed
for the closing of such offer, in accordance with the procedures set forth in
the Indenture.  To the extent that the aggregate amount of Notes, and
such Senior Indebtedness tendered pursuant to an Asset Sale Offer is less than
the Excess Proceeds, the Issuer and/or any of its Restricted Subsidiaries may
use any remaining Excess Proceeds for general corporate purposes, subject to
other covenants contained in the Indenture.  If the aggregate
principal amount of Notes or such Senior Indebtedness surrendered by such
holders thereof exceeds the amount of Excess Proceeds, the Notes and such Senior
Indebtedness will be purchased on a pro rata basis based on
the accreted value or principal amount of the Notes or such Senior Indebtedness
tendered.

     

    (c)           The
Issuer and/or any of its Restricted Subsidiaries may, at its/their option, make
an Asset Sale Offer using proceeds from any Asset Sale at any time after
consummation of such Asset Sale (other than an Asset Sale of Collateral or other
Oncor-related Assets); provided that such
Asset Sale Offer shall be in an aggregate amount of not less than $25.0
million.  Upon consummation of such Asset Sale Offer, any Net Proceeds
not required to be used to purchase Notes shall not be deemed Excess
Proceeds.

     

    (d)           If
the Issuer or any of its Restricted Subsidiaries consummates an Asset Sale of
Collateral or other Oncor-related Assets, within 10 Business Days of each date
that the aggregate amount of  Collateral Excess Proceeds exceeds
$200.0 million, the Issuer and/or any of its Restricted Subsidiaries shall make
an offer to all Holders of the Notes and, if required or permitted by the terms
of any Parity Lien Debt, to the holders of such Parity Lien Debt (a “Collateral Asset Sale
Offer”), to purchase the maximum aggregate principal amount of the Notes
and such Parity Lien Debt that is a minimum of $2,000 or an integral multiple of
$1,000 in excess thereof that may be purchased out of the Collateral Excess
Proceeds at an offer price in cash in an amount equal to 100% of the principal
amount thereof, plus accrued and
unpaid interest and Additional Interest, if any, to the date fixed for the
closing of such offer, in accordance with the procedures set forth in the
Indenture.  To the extent that the aggregate amount of Notes and such
Parity Lien Debt tendered pursuant to a Collateral Asset Sale Offer is less than
the Collateral Excess Proceeds, the Issuer and/or any of its Restricted
Subsidiaries may use any remaining Collateral Excess Proceeds for general
corporate purposes, subject to other covenants contained in the Indenture and
the terms of such Parity Lien Debt.  If the aggregate principal amount
of Notes or the Parity Lien Debt surrendered by such holders thereof exceeds the
amount of Collateral Excess Proceeds, the Notes and such Parity Lien Debt will
be purchased on a pro rata basis based on
the accreted value or principal amount of the Notes or such Parity Lien Debt
tendered.

     

    (e)           The
Issuer and/or any of its Restricted Subsidiaries may, at its/their option, make
a Collateral Asset Sale Offer using proceeds from any Asset Sale of Collateral
or other Oncor-related Assets at any time after consummation of such Asset Sale;
provided that such
Collateral Asset Sale Offer shall be in an aggregate amount of not less than
$25.0 million.  Upon consummation of such Collateral Asset Sale
Offer, any Net Proceeds not required to be used to purchase Notes shall not be
deemed Collateral Excess Proceeds and the Issuer and its Restricted Subsidiaries
may use any remaining Net Proceeds for general corporate purposes, subject to
the other covenants contained in the Indenture.

     

    (9)           Denominations,
Transfer, Exchange.  The Notes are in registered form without
coupons in denominations of $2,000 and integral multiples of $1,000 in excess
thereof.  The transfer of Notes may be registered and Notes may be
exchanged as provided in the Indenture.  The Registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements
and transfer documents and the Issuer may require a Holder to pay any taxes and
fees required by law or permitted by the Indenture.  The Issuer need
not exchange or register the transfer of any Notes or portion of Notes selected
for redemption, except for the unredeemed portion of any Notes being redeemed in
part.  Also, the Issuer need not exchange or register the transfer of
any Notes for a period of 15 days before a selection of Notes to be
redeemed.

     

    (10)           Persons
Deemed Owners.  The registered Holder of a Note may be treated
as its owner for all purposes.

     

    (11)           Amendment,
Supplement and Waiver.  The Indenture, the Guarantees or the
Notes may be amended or supplemented as provided in the Indenture.

     

    (12)           Defaults
and Remedies.  The Events of Default relating to the Notes are
defined in Section 6.01 of the Indenture.  If any Event of
Default occurs and is continuing, the Trustee or the Holders of at least 30% in
aggregate principal amount of the then outstanding Notes may declare the
principal, premium, if any, interest and any other monetary obligations on all
the then outstanding Notes to be due and payable
immediately.  Notwithstanding the foregoing, in the case of an Event
of Default arising from certain events of bankruptcy or insolvency, all
outstanding Notes will become due and payable immediately without further action
or notice.  Holders may not enforce the Indenture, the Notes or the
Guarantees except as provided in the Indenture.  Subject to certain
limitations, Holders of a majority in aggregate principal amount of the then
outstanding Notes may direct the Trustee in its exercise of any trust or
power.  The Trustee may withhold from Holders of the Notes notice of
any continuing Default (except a Default relating to the payment of principal,
premium, if any, interest or Additional Interest, if any) if it determines that
withholding notice is in their interest.  The Holders of a majority in
aggregate principal amount of the then outstanding Notes by notice to the
Trustee may on behalf of the Holders of all of the Notes waive any existing
Default or and its consequences under the Indenture except a continuing Default
in payment of the principal, premium, if any, interest or Additional Interest,
if any, on, any of the Notes held by a non-consenting Holder.  The
Issuer and each Guarantor (to the extent that such Guarantor is so required
under the Trust Indenture Act) is required to deliver to the Trustee annually a
statement regarding compliance with the Indenture, and the Issuer is required
within five Business Days after becoming aware of any Default, to deliver to the
Trustee a statement specifying such Default and what action the Issuer proposes
to take with respect thereto.

     

    (13)           Authentication.  This
Note shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose until authenticated by the manual signature of the
Trustee.

     

    (14)           Additional
Rights of Holders of Restricted Global Notes and Restricted Definitive
Notes.  In addition to the rights provided to Holders of Notes
under the Indenture, Holders of Restricted Global Notes and Restricted
Definitive Notes shall have all the rights set forth in the Registration Rights
Agreement, dated as of January 12, 2010, among the Issuer, the Guarantors named
therein and the other parties named on the signature pages thereof (the “Registration Rights
Agreement”), including the right to receive Additional Interest, if any
(as defined in the Registration Rights Agreement).

     

    (15)           GOVERNING LAW.  THE
INDENTURE, THE NOTES AND THE GUARANTEES WILL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     

    (16)           CUSIP/ISIN
Numbers.  Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Issuer has caused
CUSIP/ISIN numbers to be printed on the Notes and the Trustee may use CUSIP/ISIN
numbers in notices of redemption as a convenience to Holders.  No
representation is made as to the accuracy of such numbers either as printed on
the Notes or as contained in any notice of redemption and reliance may be placed
only on the other identification numbers placed thereon.

     

    The
Issuer will furnish to any Holder upon written request and without charge a copy
of the Indenture, the Registration Rights Agreement and/or the Security
Documents.  Requests may be made to the Issuer at the following
address:

     

    
      	
              Energy
      Future Holdings Corp.

            
	
              Energy
      Plaza

            
	
              1601
      Bryan Street

            
	
              Dallas,
      Texas 75201-3411

            
	
              Facsimile
      No.: (214) 812-6032

            
	
              Attention:  General
      Counsel

            
	
              And

            
	
              Facsimile
      No.:  (214) 812-4097

            
	
              Attention:  Treasurer

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ASSIGNMENT
FORM

     

    To assign
this Note, fill in the form below:

     

    
      	
              (I)
      or (we) assign and transfer this Note
      to:                                                                                                                                          

            
	 
      	
              (Insert
      assignee’s legal name)

            
	 
      
	 
      
	
              (Insert
      assignee’s Soc. Sec. or tax I.D. no.)

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

            

    

    

    

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

     

    

     

    
      	
              Date:
      ___________________

            	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              Your
      Signature                                                                                         

            
	 
      	
              (Sign
      exactly as your name appears on the

            
	 
      	
              face
      of this Note)

            
	 
      
	
              Signature
      Guarantee*:_____________________________

            

    

    

    
      	
              *

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

            

    

     

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    OPTION
OF HOLDER TO ELECT PURCHASE

     

    If you
want to elect to have this Note purchased by the Issuer pursuant to
Section 4.10(d), 4.10(h) or 4.14 of the Indenture, check the appropriate
box below:

     

    
      	
               Section 4.10(d)

            	
               Section 4.10(h)

            	
               Section 4.14

            

    

    

    If you
want to elect to have only part of this Note purchased by the Issuer pursuant to
Section 4.10(d), 4.10(h) or Section 4.14 of the Indenture, state the
amount you elect to have purchased:

     

    
      	 
      	
              $_______________

            
	 
      	 
      
	
              Date:
      _____________________

            	 
      
	 
      	 
      
	 
      	
              Your
      Signature:                                                                         

            
	 
      	
              (Sign
      exactly as your name appears on the face of

            
	 
      	
              this
      Note)

            
	 
      	 
      
	 
      	
              Tax
      Identification
      No.:                                                                         

            
	 
      	 
      
	
              Signature
      Guarantee*:                                                                               

            	 
      

    

    

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

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SCHEDULE
OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE2

     

    The
initial outstanding principal amount of this Global Note is $
___________________.  The following exchanges of a part of this Global
Note for an interest in another Global Note or for a Definitive Note, or
exchanges of a part of another Global or Definitive Note for an interest in this
Global Note, have been made:

     

    
      	
              
                Date
      of Exchange

              

            	
              
                Amount
      of decrease in Principal Amount

              

            	
              
                Amount
      of increase

                in
      Principal

                Amount
      of this

                Global
      Note

              

            	
              
                Principal
      Amount of this Global Note following each decrease or
      increase

              

            	
              
                Signature
      of authorized officer of Trustee or
  Custodian

              

            

    

    

    

    

      

    

      
      
        	
                2

              	
                This schedule should be included
      only if the Note is issued in global
  form.

              

      

       

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
B

     

     

    FORM
OF CERTIFICATE OF TRANSFER

     

    Energy
Future Holdings Corp.

    Energy
Plaza

    1601
Bryan Street

    Dallas,
Texas 75201-3411

    Attention:  General
Counsel

    Facsimile
No.:   (214) 812-6032

    Attention:   Treasurer

    Facsimile
No.:   (214) 812-4097

    

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

    Corporate
Trust Division

    601
Travis Street – 16th
Floor

    Houston,
TX 77002

    Facsimile
No.:  (713) 483-6954

    Attention:  EFH
Senior Secured Notes Trustee

    

     

    
      	
              Re:

            	
              10.000%
      Senior Secured Notes due 2020

            

    

    

    Reference
is hereby made to the Indenture, dated as of January 12, 2010 (the “Indenture”), among
Energy Future Holdings Corp., the Guarantors named therein and the
Trustee.  Capitalized terms used but not defined herein shall have the
meanings given to them in the Indenture.

     

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

     

    [CHECK
ALL THAT APPLY]

    

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

     

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

     

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

     

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

     

     

    OR

     

    (b) [  ]
such Transfer is being effected to the Issuer or a subsidiary
thereof;

     

     

    OR

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      	 
      	
              [Insert
      Name of Transferor]

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:                                                               

            
	 
      	
              Name:

            
	 
      	
              Title:

            
	
              Dated:
      _______________________

            	 
      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ANNEX
A TO CERTIFICATE OF TRANSFER

     

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

     

     

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

     

    (a)             a beneficial interest in the:

     

    (i)             144A Global Note (CUSIP
[                 ]
[                ]),
or

     

    (ii)             Regulation S Global Note (CUSIP
[                 ]
[                ]),
or

     

    (b)             a Restricted Definitive Note.

     

    2.           After
the Transfer the Transferee will hold:

     

     

    [CHECK
ONE]

     

    (a)             a beneficial interest in the:

     

    (i)             144A
Global Note (CUSIP
[                 ]
[                ]),
or

     

    (ii)             Regulation S
Global Note (CUSIP
[                 ]
[                ]),
or

     

    (iii)             Unrestricted Global Note (CUSIP
[                 ]
[                ]);

     

    or

     

    (b)             a Restricted Definitive Note; or

     

    (c)             an Unrestricted Definitive Note, in accordance with the
terms of the Indenture.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
C

     

     

    FORM OF CERTIFICATE OF
EXCHANGE

     

    Energy
Future Holdings Corp.

    Energy
Plaza

    1601
Bryan Street

    Dallas,
Texas 75201-3411

    Attention:  General
Counsel

    Facsimile
No.:   (214) 812-6032

    Attention:   Treasurer

    Facsimile
No.:   (214) 812-4097

    

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

    Corporate
Trust Division

    601
Travis Street – 16th
Floor

    Houston,
TX 77002

    Facsimile
No.:  (713) 483-6954

    Attention:  EFH
Senior Secured Notes Trustee

    

     

    
      	
              Re:

            	
              10.000%
      Senior Secured Notes due 2020

            

    

    

    Reference
is hereby made to the Indenture, dated as of January 12, 2010 (the “Indenture”), among
Energy Future Holdings Corp., the Guarantors named therein and the
Trustee.  Capitalized terms used but not defined herein shall have the
meanings given to them in the Indenture.

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    (b)             Check
if Exchange is from Restricted Definitive Note to beneficial interest in a
Restricted Global Note.  In connection with the Exchange of the
Owner’s Restricted Definitive Note for a beneficial interest in the [CHECK
ONE]    144A Global
Note    Regulation S Global Note,
with an equal principal amount, the Owner hereby certifies (i) the beneficial
interest is being acquired for the Owner’s own account without transfer and (ii)
such Exchange has been effected in compliance with the transfer restrictions
applicable to the Restricted Global Notes and pursuant to and in accordance with
the Securities Act, and in compliance with any applicable blue sky securities
laws of any state of the United States. Upon consummation of the proposed
Exchange in accordance with the terms of the Indenture, the beneficial interest
issued will be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the relevant Restricted Global Note and in the
Indenture and the Securities Act.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    This
certificate and the statements contained herein are made for your benefit and
the benefit of the Issuer and are dated ______________________.

     

    
      	 
      	
              [Insert
      Name of Transferor]

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:                                                               

            
	 
      	
              Name:

            
	 
      	
              Title:

            
	 
      	 
      
	
              Dated:
      _______________________

            	 
      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
D

     

     

    [FORM
OF SUPPLEMENTAL INDENTURE

     

     

    TO
BE DELIVERED BY SUBSEQUENT GUARANTORS]

     

    Supplemental
Indenture (this “Supplemental
Indenture”), dated as of _______________, among __________________ (the
“Guaranteeing
Subsidiary”), a subsidiary of Energy Future Holdings Corp., a Texas
corporation (the “Issuer”), and The
Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”).

     

    W I T N E
S S E T H

     

    WHEREAS,
each of the Issuer and the Guarantors (as defined in the Indenture referred to
below) has heretofore executed and delivered to the Trustee an Indenture (the
“Indenture”),
dated as of January 12, 2010, providing for the issuance of an unlimited
aggregate principal amount of 10.000% Senior Secured Notes due 2020 (the “Notes”);

     

    WHEREAS,
the Indenture provides that under certain circumstances the Guaranteeing
Subsidiary shall execute and deliver to the Trustee a supplemental indenture
pursuant to which the Guaranteeing Subsidiary shall unconditionally guarantee
all of the Issuer’s Obligations under the Notes and the Indenture on the terms
and conditions set forth herein and under the Indenture (the “Guarantee”);
and

     

    WHEREAS,
pursuant to Section 9.01 of the Indenture, the Trustee is authorized to
execute and deliver this Supplemental Indenture.

     

    NOW
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties mutually
covenant and agree for the equal and ratable benefit of the Holders of the Notes
as follows:

     

    1.           Capitalized
Terms.  Capitalized terms used herein without definition shall
have the meanings assigned to them in the Indenture.

     

    2.           Agreement to
Guarantee.  The Guaranteeing Subsidiary hereby agrees as
follows:

     

    (a) Along
with all Guarantors named in the Indenture, to jointly and severally, fully and
unconditionally guarantee to each Holder of a Note authenticated and delivered
by the Trustee and to the Trustee and its successors and assigns, irrespective
of the validity and enforceability of the Indenture, the Notes or the
obligations of the Issuer hereunder or thereunder, that:

     

    (i) the
principal, premium, if any, and interest and Additional Interest, if any, on the
Notes shall be promptly paid in full when due, whether at maturity, by
acceleration, redemption or otherwise, and interest on the overdue principal of
and interest on the Notes, if any, if lawful, and all other obligations of the
Issuer to the Holders or the Trustee hereunder or thereunder shall be promptly
paid in full or performed, all in accordance with the terms hereof and thereof;
and

     

    (ii) in case
of any extension of time of payment or renewal of any Notes or any of such other
obligations, that same shall be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at stated
maturity, by acceleration or otherwise.  Failing payment when due of
any amount so guaranteed or any performance so guaranteed for whatever reason,
the Guarantors and the Guaranteeing Subsidiary shall be jointly and severally
obligated to pay the same immediately.  Each Guarantor (including the
Guaranteeing Subsidiary) agrees that this is a guarantee of payment and not a
guarantee of collection.

     

    (b) The
obligations hereunder shall be unconditional, irrespective of the validity,
regularity or enforceability of the Notes or the Indenture, the absence of any
action to enforce the same, any waiver or consent by any Holder of the Notes
with respect to any provisions hereof or thereof, the recovery of any judgment
against the Issuer, any action to enforce the same or any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a
guarantor.

     

    (c) The
following is hereby waived:  diligence, presentment, demand of
payment, filing of claims with a court in the event of insolvency or bankruptcy
of the Issuer, any right to require a proceeding first against the Issuer,
protest, notice and all demands whatsoever.

     

    (d) Except as
set forth in Section 5 hereof, this Guarantee shall not be discharged except by
complete performance of the obligations contained in the Notes, the Indenture
and this Supplemental Indenture, and the Guaranteeing Subsidiary accepts all
obligations of a Guarantor under the Indenture.

     

    (e) If any
Holder or the Trustee is required by any court or otherwise to return to the
Issuer, any of the Guarantors (including the Guaranteeing Subsidiary), or any
custodian, trustee, liquidator or other similar official acting in relation to
either the Issuer or any of the Guarantors, any amount paid either to the
Trustee or such Holder, this Guarantee, to the extent theretofore discharged,
shall be reinstated in full force and effect.

     

    (f) The
Guaranteeing Subsidiary shall not be entitled to any right of subrogation in
relation to the Holders in respect of any obligations guaranteed hereby until
payment in full of all obligations guaranteed hereby.

     

    (g) As
between the Guaranteeing Subsidiary, on the one hand, and the Holders and the
Trustee, on the other hand, (x) the maturity of the obligations guaranteed
hereby may be accelerated as provided in Article 6 of the Indenture for the
purposes of this Guarantee, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (y) in the event of any declaration of acceleration of
such obligations as provided in Article 6 of the Indenture, such obligations
(whether or not due and payable) shall forthwith become due and payable by the
Guarantors for the purpose of this Guarantee.

     

    (h) The
Guaranteeing Subsidiary shall have the right to seek contribution from any
non-paying Guarantor so long as the exercise of such right does not impair the
rights of the Holders under this Guarantee.

     

    (i) Pursuant
to Section 11.02 of the Indenture, after giving effect to all other
contingent and fixed liabilities that are relevant under any applicable
Bankruptcy or fraudulent conveyance laws, and after giving effect to any
collections from, rights to receive contribution from or payments made by or on
behalf of any other Guarantor in respect of the obligations of such other
Guarantor under Article 11 of the Indenture, this new Guarantee shall be limited
to the maximum amount permissible such that the obligations of such Guaranteeing
Subsidiary under this Guarantee will not constitute a fraudulent transfer or
conveyance.

     

    (j) This
Guarantee shall remain in full force and effect and continue to be effective
should any petition be filed by or against the Issuer for liquidation,
reorganization, should the Issuer become insolvent or make an assignment for the
benefit of creditors or should a receiver or trustee be appointed for all or any
significant part of the Issuer’s assets, and shall, to the fullest extent
permitted by law, continue to be effective or be reinstated, as the case may be,
if at any time payment and performance of the Notes are, pursuant to applicable
law, rescinded or reduced in amount, or must otherwise be restored or returned
by any obligee on the Notes or Guarantee, whether as a “voidable preference,”
“fraudulent transfer” or otherwise, all as though such payment or performance
had not been made.  In the event that any payment or any part thereof,
is rescinded, reduced, restored or returned, the Note shall, to the fullest
extent permitted by law, be reinstated and deemed reduced only by such amount
paid and not so rescinded, reduced, restored or returned.

     

    (k) In case
any provision of this Guarantee 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.

     

    (l) This
Guarantee shall be a senior [unsecured] [secured] obligation of such
Guaranteeing Subsidiary, ranking equally in right of payment with all existing
and future Senior Indebtedness of the Guaranteeing Subsidiary, [and will be
effectively subordinated to all Secured Indebtedness of such Guaranteeing
Subsidiary to the extent of the value of the assets securing such
Indebtedness].  The Guarantees will be senior in right of payment to
all existing and future Subordinated Indebtedness of each
Guarantor.  The Notes will be structurally subordinated to
Indebtedness and other liabilities of Subsidiaries of the Issuer that do not
Guarantee the Notes, if any.

     

    (m) Each
payment to be made by the Guaranteeing Subsidiary in respect of this Guarantee
shall be made without set-off, counterclaim, reduction or diminution of any kind
or nature.

     

    3.           Execution And
Delivery.                                                                The
Guaranteeing Subsidiary agrees that the Guarantee shall remain in full force and
effect notwithstanding the absence of the endorsement of any notation of such
Guarantee on the Notes.

     

    4.           Merger, Consolidation or Sale
of All or Substantially All Assets.

     

    (a) The
Guaranteeing Subsidiary may not consolidate or merge with or into or wind up
into (whether or not the Issuer or Guaranteeing Subsidiary is the surviving
corporation), or sell, assign, transfer, lease, convey or otherwise dispose of
all or substantially all of its properties or assets, in one or more related
transactions, to any Person except in compliance with Section 5.01(d) of the
Indenture.

     

    (b) Subject
to certain limitations described in the Indenture, the Successor Person will
succeed to, and be substituted for, the Guaranteeing Subsidiary under the
Indenture and the Guaranteeing Subsidiary’s
Guarantee.  Notwithstanding the foregoing, the Guaranteeing Subsidiary
may (i) merge into or transfer all or part of its properties and assets to
another Guarantor or the Issuer, (ii) merge with an Affiliate of the Issuer
solely for the purpose of reincorporating the Guaranteeing Subsidiary in the
United States, any state thereof, the District of Columbia or any territory
thereof or (iii) convert into a corporation, partnership, limited partnership,
limited liability corporation or trust organized or existing under the laws of
the jurisdiction of organization of such Guarantor.

     

    5.           Releases.  The
Guarantee of the Guaranteeing Subsidiary shall be automatically and
unconditionally released and discharged, and no further action by the
Guaranteeing Subsidiary, the Issuer or the Trustee is required for the release
of the Guaranteeing Subsidiary’s Guarantee, upon:

     

    (1) (A) any
sale, exchange or transfer (by merger, wind-up, consolidation or otherwise) of
the Capital Stock of the Guaranteeing Subsidiary (including any sale, exchange
or transfer), after which the Guaranteeing Subsidiary is no longer a Restricted
Subsidiary or sale of all or substantially all the assets of the Guaranteeing
Subsidiary which sale, exchange or transfer is made in compliance with the
applicable provisions of the Indenture;

     

    (B) the
release or discharge of the guarantee by the Guaranteeing Subsidiary of the
guarantee which resulted in the creation of the Guarantee, except a discharge or
release by or as a result of payment under such guarantee;

     

    (C) the
designation of the Guaranteeing Subsidiary as an Unrestricted Subsidiary in
compliance with Section 4.07 of the Indenture and the definition of
“Unrestricted Subsidiary” in the Indenture; or

     

    (D) the
exercise by the Issuer of its Legal Defeasance option or Covenant Defeasance
option in accordance with Article 8 of the Indenture or the Issuer’s obligations
under the Indenture being discharged in accordance with the terms of the
Indenture; and

     

    (2)           the
delivery by the Guaranteeing Subsidiary to the Trustee an Officer’s Certificate
and an Opinion of Counsel, each stating that all conditions precedent provided
for in the Indenture relating to such transaction have been complied
with.

     

    6.           No Recourse Against
Others.  No past, present or future director, officer,
employee, incorporator or stockholder of the Guaranteeing Subsidiary shall have
any liability for any obligations of the Issuer or the Guarantors (including the
Guaranteeing Subsidiary) under the Notes, any Guarantees, this Supplemental
Indenture, the Indenture or any Security Document or for any claim based on, in
respect of, or by reason of, such obligations or their creation.  Each
Holder by accepting Notes waives and releases all such liability.  The
waiver and release are part of the consideration for issuance of the
Notes.

     

    7.           Governing
Law.  THIS SUPPLEMENTAL INDENTURE WILL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     

    8.           Counterparts.  The
parties may sign any number of copies of this Supplemental
Indenture.  Each signed copy shall be an original, but all of them
together represent the same agreement.

     

    9.           Effect of
Headings.  The Section headings herein are for convenience
only and shall not affect the construction hereof.

     

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

     

    11.           Subrogation.  The
Guaranteeing Subsidiary shall be subrogated to all rights of Holders of Notes
against the Issuer in respect of any amounts paid by the Guaranteeing Subsidiary
pursuant to the provisions of Section 2 hereof and Section 11.01 of
the Indenture; provided that if an
Event of Default has occurred and is continuing, the Guaranteeing Subsidiary
shall not be entitled to enforce or receive any payments arising out of, or
based upon, such right of subrogation until all amounts then due and payable by
the Issuer under the Indenture or the Notes shall have been paid in
full.

     

    12.           Benefits
Acknowledged.  The Guaranteeing Subsidiary’s Guarantee is
subject to the terms and conditions set forth in the Indenture.  The
Guaranteeing Subsidiary acknowledges that it shall receive direct and indirect
benefits from the financing arrangements contemplated by the Indenture and this
Supplemental Indenture and that the guarantee and waivers made by it pursuant to
this Guarantee are knowingly made in contemplation of such
benefits.

     

    13.           Successors.  All
agreements of the Guaranteeing Subsidiary in this Supplemental Indenture shall
bind its Successors, except as otherwise provided in Section 2(k) hereof or
elsewhere in this Supplemental Indenture.  All agreements of the
Trustee in this Supplemental Indenture shall bind its successors.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

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

     

    
      	 
      	
              ENERGY
      FUTURE HOLDINGS CORP.

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:                                                                

            
	 
      	
              Name:

            
	 
      	
              Title:

            
	 
      	 
      
	 
      	 
      
	 
      	
              [NAMES
      OF GUARANTORS]

            
	 
      	 
      
	 
      	
              By:                                                                

            
	 
      	
              Name:

            
	 
      	
              Title:

            
	 
      	 
      
	 
      	 
      
	 
      	
              THE
      BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:                                                                

            
	 
      	
              Name:

            
	 
      	
              Title:

            
	 
      	 
      
	 
      	 
      
	 
      	
              [GUARANTEEING
      SUBSIDIARY]

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:                                                                

            
	 
      	
              Name:

            
	 
      	
              Title:

            

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
E

     

    

       

      ______________________________________________________________________________

       

      [NAME OF SUCCESSOR
COMPANY]

       

      or

       

      [ENERGY FUTURE INTERMEDIATE HOLDING
COMPANY LLC]

       

      AND
EACH OF THE GUARANTORS PARTY HERETO

       

      10.000%
SENIOR SECURED NOTES DUE 2020

       

      
        	 
      
	
                SUPPLEMENTAL
      INDENTURE

              
	
                TO

              
	 
      
	
                ENERGY
      FUTURE HOLDINGS CORP.

                INDENTURE,
      DATED AS OF JANUARY 12, 2010

              
	 
      
	 
      
	
                DATED
      AS OF [___________], 20[__]

              
	 
      

      

      

       

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      [FORM OF]
PERMITTED TRANSFER SUPPLEMENTAL INDENTURE

       

      10.000%
Senior Secured Notes due 2020

       

      THIS SUPPLEMENTAL INDENTURE, dated as
of [_____], 20[__] (this “Supplemental
Indenture”), among [Energy Future Intermediate Holding Company LLC, a
Delaware limited liability company] [NAME OF SUCCESSOR EFIH COMPANY] (the “Company”), Energy
Future Holdings Corp., a Texas corporation (“EFH Corp.”), the
Guarantors (as defined in the Base Indenture (defined below)) and The Bank of
New York Mellon Trust Company, N.A., as Trustee (in such capacity, the “Trustee”) under the
Base Indenture.

       

      RECITALS
OF THE COMPANY:

       

      WHEREAS,
EFH Corp., the Guarantors and the Trustee have heretofore entered into an
Indenture dated as of January 12, 2010 (the “Base Indenture” and, as
supplemented by this Supplemental Indenture, the “Indenture”),
providing for the issuance by EFH Corp. of its 10.000% Senior Secured Notes due
2020 (the “Notes”);

       

      WHEREAS,
[Describe Permitted Asset Transfer] (the “Permitted Asset Transfer
Transaction”);

       

      WHEREAS,
Section 4.16 of the Base Indenture requires EFH Corp., the Company and the
Trustee to enter into this Supplemental Indenture in connection with a
consummation of the Permitted Asset Transfer Transaction, whereby the Company
shall assume the obligations of EFH Corp. under the Indenture and the Notes,
including the due and punctual payment of the principal of and any premium and
interest on all the Notes, and the performance or observance of every covenant
of the Base Indenture on the part of EFH Corp. to be performed or observed
thereunder, and the Base Indenture shall be otherwise amended and supplemented
as set forth herein;

       

      WHEREAS,
all conditions to the Permitted Asset Transfer Transaction provided for in
Section 4.16 of the Base Indenture (other than the execution and delivery of
this Supplemental Indenture) have been satisfied;

       

      WHEREAS,
to affirm the assumption by the Company of the obligations under the Base
Indenture and the Notes of EFH Corp. for the due and punctual payment of the
principal of and any premium and interest on all the Notes, and the performance
or observance of every covenant of the Base Indenture on the part of EFH Corp.
to be performed or observed thereunder, and the obligations under this
Supplemental Indenture, the Company desires to enter into this Supplemental
Indenture with EFH Corp., the Guarantors and the Trustee thereby becoming the
Issuer under the Indenture;

       

      WHEREAS, pursuant to Section 11.06(c)
of the Base Indenture, EFCH shall be automatically released from its Guarantee
of the Notes in connection with the Permitted Asset Transfer
Transaction;

       

      WHEREAS, pursuant to Section 11.06(b)
of the Base Indenture, EFIH shall be automatically released from its Guarantee
of the Notes in connection with the Permitted Asset Transfer
Transaction;

       

      [WHEREAS,
to affirm that its respective Guarantee as a Guarantor shall apply to the
obligations of the Company (in substitution for EFH Corp.) under the Indenture
and the Notes, as provided in the Base Indenture and this Supplemental
Indenture, each Guarantor other than EFCH and EFIH desires to enter into this
Supplemental Indenture with the Company, EFH Corp. and the
Trustee;]

       

      WHEREAS,
Section 9.01(15) of the Base Indenture provides that EFH Corp., the Guarantors,
the Company and the Trustee may enter into a Permitted Transfer Supplemental
Indenture without obtaining the consent of any Holders of the Notes to amend the
Base Indenture to evidence the assumption by the Company of the obligations of
EFH Corp. under the Base Indenture and the Notes in connection with the
consummation of a Permitted Asset Transfer in the manner set forth in Section
4.16 of the Base Indenture; and

       

      WHEREAS,
this Supplemental Indenture has been duly authorized by all necessary corporate
or other action of EFH Corp., the Company and the Guarantors, and all things
necessary have been done to make this Supplemental Indenture a valid agreement
of EFH Corp., the Company and the Guarantors.

       

      NOW
THEREFORE, for and in consideration of the foregoing and of the covenants
contained herein and in the Base Indenture, EFH Corp., the Company, the
Guarantors and the Trustee mutually covenant and agree, for the equal and
ratable benefit of all Holders of the Notes as follows:

       

      ARTICLE
1

       

      ASSUMPTION OF PAYMENT,
PERFORMANCE AND OBSERVANCE; RELEASE

       

      Section
1.01                      Assumption of
Obligations.  The Company hereby expressly assumes the due and
punctual payment of the principal of and any premium and interest and Additional
Interest, if any, on all the Notes and the performance or observance of every
covenant of the Indenture on the part of EFH Corp. to be performed or observed
thereunder.

       

      Section
1.02                      Successor Company
Substituted; Release of EFH Corp.  The Company is hereby
substituted for and shall succeed to EFH Corp., and may exercise every right and
power of the Issuer under the Indenture with the same effect as if the Company
had initially been named as the Issuer thereto, and EFH Corp. is hereby released
from all liability as obligor under the Indenture and the Notes issued
thereunder. Upon execution of this Supplemental Indenture, EFH Corp. shall cease
to be the Issuer under the Indenture.

       

      Section
1.03                      Issuer.  For
purposes of this Supplemental Indenture and the Base Indenture, from and after
the date hereof, references to the “Issuer” shall hereinafter be to the
Company.

       

      Section
1.04                      Release of EFCH
Guarantee.  The Guarantee of EFCH with respect to the Notes and
pursuant to the Indenture shall automatically be released and terminated, and
EFCH shall automatically be released from all liability as an obligor under the
Indenture and the Notes and its Guarantee issued thereunder, upon the assumption
by the Company of all the obligations of EFH Corp. and EFIH under the Notes, the
Indenture, the Security Documents and the Registration Rights Agreement to which
EFH Corp. or EFIH may be a party.

       

      Section
1.05                      Release of EFIH
Guarantee.  The Guarantee of EFIH with respect to the Notes and
pursuant to the Indenture shall automatically be released and terminated, and
EFIH shall automatically be released from all liability as an obligor under the
Indenture and the Notes and its Guarantee issued thereunder, upon the assumption
by the Company of all the obligations of EFH Corp. and EFIH (with the Company
assuming EFIH’s obligations as a direct obligor and no longer as a Guarantor)
under the Notes, the Indenture, the Security Documents and the Registration
Rights Agreement to which EFH Corp. or EFIH may be a party.

       

      [Section
1.06                      Confirmation of [Other]
Guarantee[s].                                                                Each
Guarantor other than EFCH and EFIH hereby confirms that its respective Guarantee
as Guarantor under the Indenture shall apply to the obligations of the Company
(in substitution for EFH Corp.) under the Indenture and the Notes.]

       

      Section
1.07                      Calculations.                      From
and after the date of this Supplemental Indenture, calculations under the
Indenture shall be made in accordance with the calculations in the Base
Indenture as amended by this Supplemental Indenture, but, in respect of actions
taken from and after the date of this Supplemental Indenture, treating the Notes
as if they had been issued by EFIH from the Secured Notes Issue Date to the date
of this Supplemental Indenture, and thereafter, by the Issuer.

       

      ARTICLE
2

       

      DEFINITIONS

       

      Section
2.01                      Relation to Base
Indenture

       

      .  This Supplemental Indenture
constitutes an integral part of the Base Indenture and the Base Indenture and
this Supplemental Indenture shall henceforth be read and construed
together.

       

      Section
2.02                      Definitions

       

      .  For all purposes
of this Supplemental Indenture, except as otherwise expressly provided for or
unless the context otherwise requires:

       

      (a) Capitalized
terms used but not defined herein shall have the respective meanings assigned to
them in the Base Indenture;

       

      (b) Terms
defined both herein and in the Base Indenture shall have the meanings assigned
to them herein;

       

      (c) All
references herein to Articles and Sections, unless otherwise specified, refer to
the corresponding Articles and Sections of this Supplemental
Indenture;

       

      (d) All other
terms used in this Supplemental Indenture, which are defined in the Trust
Indenture Act or which are by reference therein defined in the Securities Act
(except as herein otherwise expressly provided or unless the context otherwise
requires) shall have the meanings assigned to such terms in the Trust Indenture
Act and in the Securities Act as in force at the date of the execution of this
Supplemental Indenture.  The words “herein,” “hereof,” “hereunder,”
and words of similar import refer to this Supplemental Indenture as a whole and
not to any particular Article, Section or other subdivision.  The
terms defined in this Article include the plural as well as the singular;
and

       

      (e) Section
1.01 of the Base Indenture is hereby amended by adding the following
definitions:

       

      “2017 Notes” means EFH
Corp.’s 10.875% Senior Notes due 2017 and 11.250%/12.000% Senior Toggle Notes
due 2017.

       

      “EFH Corp.’s Ratable Portion
of Oncor Dividends” means the amount obtained by multiplying (a) the
aggregate amount of cash received by EFIH by means of a cash dividend from the
Oncor Subsidiaries after the Issue Date (other than dividends constituting
proceeds from Asset Sales of Oncor-related Assets) by (b) a fraction, the
numerator of which shall be the sum of the aggregate principal amount of the
Notes and any other Parity Lien Debt of EFH Corp. that is guaranteed by EFIH
under clause (2) of Section 4.09(b) hereof, and the denominator of which shall
be the aggregate principal amount of (i) the Notes and any other Parity Lien
Debt of EFH Corp. that is guaranteed by EFIH plus (ii) the EFIH
Notes, any Additional Notes and any other Parity Lien Debt of EFIH, in the case
of clauses (i) and (ii) incurred pursuant to clause (2) of Section 4.09(b)
hereof and at the time outstanding.

       

      “EFIH Finance” means
EFIH Finance Inc.

       

      (f) Section
1.01 of the Base Indenture is hereby amended by replacing the following
definitions contained therein in their entirety with the following:

       

      “Change of Control”
means the occurrence of any of the following:

       

       (1)           the
sale, lease or transfer, in one or a series of related transactions, of all or
substantially all of the assets of the Issuer and its Subsidiaries, taken as a
whole, or all or substantially all of the Collateral or Oncor-related Assets, to
any Person other than a Permitted Holder, other than (A) a Permitted Asset
Transfer meeting the requirements of the proviso following clause (2) of this
definition of “Change of Control” and (B) any foreclosure on the Collateral;
provided,
however, that a transaction that would otherwise constitute a Change of
Control pursuant to this clause (1) shall not constitute a Change of Control
if:

       

      (a)           the
consideration received in respect of such transaction (i) is received by the
Issuer or an Oncor Subsidiary or Successor Oncor Business, as the case may be,
(ii) consists of Capital Stock of a Person in a Similar Oncor Business that (A)
would become a Subsidiary of the Issuer or such Oncor Subsidiary or Successor
Oncor Business or (B) is a joint venture in which the Issuer or such Oncor
Subsidiary or Successor Oncor Business would have a significant equity interest
(as determined by the Issuer in good faith), (iii) is at least equal to the fair
market value (as determined by the Issuer in good faith) of the assets sold,
transferred, conveyed or otherwise disposed of, and (iv) if received by the
Issuer, shall be concurrently pledged as Collateral for the benefit of the
Holders of the Notes and the holders of the other Secured Debt
Obligations;

       

      (b)           immediately
after such transaction no Default exists;

       

      (c)           
immediately after giving pro forma effect to
such transaction and any related financing transactions (including, without
limitation, any transaction the proceeds of which are applied to reduce the
Indebtedness of the Issuer) as if the same had occurred at the beginning of the
applicable four-quarter period, either:

       

      (i) the
Issuer would be permitted to incur at least $1.00 of additional Indebtedness
pursuant to the Fixed Charge Coverage Ratio test set forth in Section 4.09(a)
hereof; or

       

      (ii)           such
Fixed Charge Coverage Ratio for the Issuer and its Restricted Subsidiaries would
be greater than such Fixed Charge Coverage Ratio for the Issuer and its
Restricted Subsidiaries immediately prior to such transaction;

       

      (d)           the
rating on the Notes shall not have been downgraded by two or more of the Rating
Agencies (or, if the Notes are rated by only one Rating Agency at the time of
the first notice of such transaction, such Rating Agency) during the period
commencing 30 days prior to the first public notice of the occurrence of such
transaction or the intention of the Issuer or any Subsidiary thereof to effect
such transaction and ending on the date 60 after such public notice relative to
the rating at the start of such period; and

       

      (e)           each
Guarantor, unless it is the other party to the transaction, shall have by a
supplemental indenture confirmed that its Guarantee and any Security Documents
to which it is a party shall apply to such Person’s obligations under this
Indenture and the Notes; or

       

      (2)           the
Issuer becomes aware (by way of a report or any other filing pursuant to Section
13(d) of the Exchange Act, proxy, vote, written notice or otherwise) of the
acquisition by any Person or group (within the meaning of Section 13(d)(3) or
Section 14(d)(2) of the Exchange Act or any successor provision), including any
group acting for the purpose of acquiring, holding or disposing of securities
(within the meaning of Rule 13d-5(b)(1) under the Exchange Act or any successor
provision), other than the Permitted Holders, in a single transaction or in a
related series of transactions, by way of merger, consolidation or other
business combination or purchase of beneficial ownership (within the meaning of
Rule 13d-3 under the Exchange Act, or any successor provision) of 50% or more of
the total voting power of the Voting Stock of the Issuer or any of its direct or
indirect parent companies;

       

      provided, however,
that a Permitted Asset Transfer shall not constitute a Change of Control
if,

       

      (a)           such
Permitted Asset Transfer complies with Section 5.01 hereof; provided that the
Successor Company may not be an Oncor Subsidiary;

       

      (b)           the
Successor Company has assumed all the obligations of the Issuer under (i) the
Notes and this Indenture and the Security Documents to which the Issuer is a
party pursuant to agreements, in each case, reasonably satisfactory to the
Trustee and the Collateral Trustee, and (ii) the Registration Rights Agreement,
in accordance with Section 5.01 of the Indenture;

       

      (c)           immediately
after such transaction no Default exists;

       

      (d)           immediately
after giving pro forma effect to such
transaction and any related financing transactions (including, without
limitation, any transaction the proceeds of which are applied to reduce the
Indebtedness of the Successor Company or the Issuer, as the case may be) as if
the same had occurred at the beginning of the applicable four-quarter period,
either:

       

      (i)           
the Successor Company, or the Issuer, as the case may be, would be permitted to
incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge
Coverage Ratio test described in Section 4.09(a) hereof; or

       

      (ii)           the
Fixed Charge Coverage Ratio (as defined in the Indenture) for the Successor
Company and its Restricted Subsidiaries or the Issuer and its Restricted
Subsidiaries, as the case may be, would be greater than such Fixed Charge
Coverage Ratio for the Issuer and its Restricted Subsidiaries immediately prior
to such transaction;

       

      (e)           
the rating on the Notes shall not have been downgraded by two or more of the
Rating Agencies (or, if the Notes are rated by only one Rating Agency at the
time of the first notice of such Permitted Asset Transfer, such Rating Agency)
during the period commencing 30 days prior to the first public notice of the
occurrence of a Permitted Asset Transfer or the intention of the Issuer or any
Subsidiary thereof to effect a Permitted Asset Transfer and ending on the date
60 days after such notice relative to the rating at the start of such period;
and

       

      (f)           
the Issuer or the Successor Company, as the case may be, shall have delivered to
the Trustee an Opinion of Counsel confirming that, subject to customary
assumptions, exclusions and qualifications, the existing Security Documents, or
the new or amended Security Documents to be entered into by the Issuer or the
Successor Company, as the case may be, are enforceable obligations of the Issuer
or the Successor Company, as the case may be, create a legally valid and
enforceable security interest in the Collateral in favor of the Collateral
Trustee for the benefit of the Holders of the Notes and the other Secured Debt
Obligations, and that the security interests in the Collateral created by the
Security Documents have been perfected.

       

      “Consolidated Leverage
Ratio” as of any date of determination, means the ratio of (x)
Consolidated Total Indebtedness (treating the Oncor Subsidiaries as Restricted
Subsidiaries for purposes of such calculation) computed as of the end of the
most recent fiscal quarter for which internal financial statements are available
immediately preceding the date on which such event for which such calculation is
being made shall occur to (y) the aggregate amount of EBITDA of the Issuer
(treating the Oncor Subsidiaries as Restricted Subsidiaries for purposes of such
calculation) for the period of the most recently ended four full consecutive
fiscal quarters for which internal financial statements are available
immediately preceding the date on which such event for which such calculation is
being made shall occur, in each case with such pro forma adjustments
to Consolidated Total Indebtedness and such EBITDA as are appropriate and
consistent with the pro forma adjustment
provisions set forth in the definition of “Fixed Charge Coverage
Ratio.”

       

      “Credit Facilities”
means, with respect to the Issuer or any of its Restricted Subsidiaries, one or
more debt facilities or other financing arrangements (including, without
limitation, commercial paper facilities or indentures) providing for revolving
credit loans, term loans, letters of credit or other long-term indebtedness,
including any notes, mortgages, guarantees, collateral documents, instruments
and agreements executed in connection therewith, and any amendments,
supplements, modifications, extensions, renewals, restatements or refundings
thereof and any indentures or credit facilities or commercial paper facilities
that replace, refund or refinance any part of the loans, notes, other credit
facilities or commitments thereunder, including any such replacement, refunding
or refinancing facility or indenture that increases the amount permitted to be
borrowed thereunder or alters the maturity thereof (provided that such
increase in borrowings is permitted under Section 4.09 hereof) or adds
Restricted Subsidiaries as additional borrowers or guarantors thereunder and
whether by the same or any other agent, lender or group of lenders.

       

      “Deposit L/C Loan”
means any Deposit L/C Loans under, and as defined in, any Credit
Facilities.

       

      “EFH Corp.” has the
meaning set forth in the recitals to this Supplemental Indenture.

       

      “Existing EFH. Corp.
Notes” means

       

      · EFH Corp.
5.55% Fixed Senior Notes Series P due 2014;

       

      · EFH Corp.
6.50% Fixed Senior Notes Series Q due 2024;

       

      · EFH Corp.
6.55% Fixed Senior Notes Series R due 2034;

       

      · EFH
Corp.  10.875% Senior Notes due 2017;

       

      · EFH Corp.
11.250%/12.000% Senior Toggle Notes due 2017; and

       

      · 9.75%
Notes;

       

      in each
case to the extent outstanding on the Issue Date.

       

      “Existing EFH Corp. Notes
Indentures” means each of the indentures or other documents containing
the terms of the Existing EFH Corp. Notes.

       

      “Incremental Deposit L/C
Loans” means any Incremental Deposit L/C Loans under, and as defined in,
any Credit Facilities.

       

      “Intercompany Loan”
means a senior, unsecured loan by EFIH or any of its Restricted Subsidiaries to
EFH Corp., with an interest rate commensurate with an arm’s length
relationship.

       

      “Oncor-related Assets”
means the Equity Interests of any of the Oncor Subsidiaries or any Successor
Oncor Business (including the Collateral) owned by the Issuer or any Oncor
Subsidiary or any Successor Oncor Business or constituting a primary issuance of
such Equity Interests to the extent such issuance would constitute an Asset Sale
and any assets owned directly or indirectly by any of the Oncor Subsidiaries or
any Successor Oncor Business.

       

      “Permitted Asset
Transfer” means the sale, assignment, transfer, conveyance or other
disposition (other than by way of merger, wind-up or consolidation) of all of
the Equity Interests of, and other Investments in, the Oncor Subsidiaries,
Successor Oncor Businesses and all other Collateral held by the Issuer to a
Person (other than an Oncor Subsidiary) that shall continue to hold such Equity
Interests, other Investments and any other Collateral, in each case other than
any foreclosure on the Collateral.

       

      “Permitted Holders”
means each of the Investors, members of management (including directors) of EFIH
or any of its direct or indirect parent companies or Subsidiaries who on the
Closing Date were or at any time prior to the first anniversary of the Closing
Date were holders of Equity Interests of EFIH (or any of its direct or indirect
parent companies) and any group (within the meaning of Section 13(d)(3) or
Section 14(d)(2) of the Exchange Act or any successor provision) of which any of
the foregoing are members; provided that, in the
case of such group and without giving effect to the existence of such group or
any other group, such Investors and members of management, collectively, have
beneficial ownership of more than 50% of the total voting power of the Voting
Stock of EFIH or any of its direct or indirect parent companies.

       

      “Sponsor Management
Agreement” means the management agreement between certain of the
management companies associated with the Investors and EFH Corp.

       

      “TCEH Notes” means the
notes previously issued by TCEH to refinance indebtedness under the TCEH Senior
Interim Facility.

       

      “Transactions” means
the transactions contemplated by the Transaction Agreement, borrowings under the
TCEH Senior Secured Facilities, the EFH Senior Interim Facility, the TCEH Senior
Interim Facility, the Oncor Electric Delivery Facility and any Receivables
Facility as in effect on the Closing Date, any repayments of indebtedness of EFH
Corp. and its Subsidiaries in connection therewith, and the issuance of the 2017
Notes and the TCEH Notes and any repayments of Indebtedness of EFH Corp. and its
Subsidiaries in connection therewith.

       

      “Transaction
Agreement” means the Agreement and Plan of Merger, dated as of February
25, 2007, among Merger Sub, Texas Energy Future Holdings Limited Partnership and
EFH Corp.

       

      “Unrestricted
Subsidiary” means:

       

      (1)           each
of the Oncor Subsidiaries;

       

      (2)           any
Subsidiary of the Issuer (other than [EFIH Finance] [ADD NAME OF CORPORATE
CO-OBLIGOR IF NOT EFIH FINANCE]  or any Guarantor owning Collateral)
which at the time of determination is an Unrestricted Subsidiary (as designated
by the Issuer, as provided below); and

       

      (3)           any
Subsidiary of an Unrestricted Subsidiary.

       

      The
Issuer may designate any Subsidiary of the Issuer (including any existing
Subsidiary and any newly acquired or newly formed Subsidiary) other than [EFIH
Finance] [ADD NAME OF CORPORATE CO-OBLIGOR IF NOT EFIH FINANCE] or any Guarantor
owning Collateral to be an Unrestricted Subsidiary, unless such Subsidiary or
any of its Subsidiaries owns any Equity Interests or Indebtedness of, or owns or
holds any Lien on, any property of, the Issuer or any Subsidiary of the Issuer
(other than solely any Subsidiary of the Subsidiary to be so designated); provided
that

       

      (1)           any
Unrestricted Subsidiary must be an entity of which the Equity Interests entitled
to cast at least a majority of the votes that may be cast by all Equity
Interests having ordinary voting power for the election of directors or Persons
performing a similar function are owned, directly or indirectly, by the
Issuer;

       

      (2)           such
designation complies with Section 4.07 hereof; and

       

      (3)           each
of:

       

      (a)           the
Subsidiary to be so designated; and

       

      (b)           its
Subsidiaries

       

      has not
at the time of designation, and does not thereafter, create, incur, issue,
assume, guarantee or otherwise become directly or indirectly liable with respect
to any Indebtedness pursuant to which the lender has recourse to any of the
assets of the Issuer or any Restricted Subsidiary.

       

      The
Issuer may designate any Unrestricted Subsidiary to be a Restricted Subsidiary;
provided that,
immediately after giving effect to such designation, no Default shall have
occurred and be continuing, and (A) the Issuer could incur at least $1.00 of
additional Indebtedness pursuant to clause (i) of the Fixed Charge Coverage
Ratio test as set forth in Section 4.09(a) hereof; or (B) the Fixed Charge
Coverage Ratio for the Issuer and its Restricted Subsidiaries would be greater
than such ratio for the Issuer and its Restricted Subsidiaries immediately prior
to such designation, in each case on a pro forma basis taking
into account such designation.

       

      Any such
designation by the Issuer shall be notified by the Issuer to the Trustee by
promptly filing with the Trustee a copy of the resolution of the Board of
Directors of the Issuer or any committee thereof giving effect to such
designation and an Officer’s Certificate certifying that such designation
complied with the foregoing provisions.

       

      (g) Section
1.01 of the Base Indenture is hereby amended by amending the following
definitions as follows:

       

      Clause
(2)(b) of the definition of “Asset Sale” is hereby
amended and restated as follows: “the disposition of all or substantially all of
the assets of the Issuer in a manner permitted by Section 5.01 hereof (other
than a disposition excluded from Section 5.01 by the proviso at the end of the
first paragraph of Section 5.01 hereof) or any disposition that constitutes a
Change of Control pursuant to the Indenture”.

       

      The final
paragraph of the definition of “Consolidated Net
Income” is hereby amended and restated as follows: “Notwithstanding the
foregoing, for the purpose of Section 4.07 hereof only (other than clause (3)(d)
of Section 4.07(a) hereof), there shall be excluded from Consolidated Net Income
(A) any income arising from any sale or other disposition of Restricted
Investments made by the Issuer and its Restricted Subsidiaries, any repurchases
and redemptions of Restricted Investments from the Issuer and its Restricted
Subsidiaries, any repayments of loans and advances which constitute Restricted
Investments by the Issuer or any of its Restricted Subsidiaries, any sale of the
stock of an Unrestricted Subsidiary or any distribution or dividend from an
Unrestricted Subsidiary, in each case only to the extent such amounts increase
the amount of Restricted Payments permitted under clause (3)(d) of Section
4.07(a) hereof and (B) any income described in paragraph (17) of Section 4.07(b)
hereof.”

       

      Clause
(1)(d) of the definition of “EBITDA” is hereby
amended and restated as follows: “any fees, expenses or charges (other than
depreciation or amortization expense) related to any Equity Offering, Permitted
Investment, acquisition, disposition, recapitalization or the incurrence of
Indebtedness permitted to be incurred by such Person and its Restricted
Subsidiaries under this Indenture (including a refinancing transaction or
amendment or other modification of any debt instrument) (whether or not
successful), including (i) such fees, expenses or charges related to the
offering of the Initial Notes, the exchange offers pursuant to which the 9.75%
Notes and EFIH Notes were issued, the offerings of any Additional Notes,
Exchange Notes or any additional 9.75% Notes or EFIH Notes, any Credit
Facilities and any Receivables Facility, (ii) any amendment or other
modification of the Notes, (iii) any such transaction consummated prior to the
Closing Date and any such transaction undertaken but not completed and (iv) any
charges or non-recurring merger costs as a result of any such transaction, in
each case, deducted (and not added back) in computing Consolidated Net Income;
plus”.

       

      Clause
(1)(i) of the definition of “EBITDA” is hereby
amended by deleting the reference to the amount of “$150.0 million” and
substituting for such amount the amount of “$50.0 million”.

       

      Clause
(1)(l) of the definition of “EBITDA” is hereby
amended and restated as follows: “[Intentionally omitted].”

       

      Clause
(2) of the definition of “Excluded
Contribution” is hereby amended and restated as follows:  “the
sale (other than to a Subsidiary of the Issuer or to any management equity plan
or stock option plan or any other management or employee benefit plan or
agreement of the Issuer or any of its direct or indirect parent companies) of
Capital Stock (other than Disqualified Stock and Designated Preferred Stock) of
the Issuer”.

       

      Clauses
(1) and (2) of the definition of “Parity Lien Debt” are
hereby amended and restated as follows:

       

      “(1)           
the Notes issued under this Indenture on the Issue Date and any Additional Notes
issued under this Indenture and any Exchange Notes related to such Notes or
Additional Notes;

       

      (2)           the
9.75% Notes and any additional 9.75% Notes, any other Indebtedness (including
letters of credit and reimbursement obligations with respect thereto) of the
Issuer, including the guarantee by EFIH of the 9.75% Notes and any additional
9.75% Notes and the EFIH Notes and any additional EFIH Notes, that is secured
equally and ratably with the Notes by a Parity Lien that was permitted to be
incurred and so secured under each applicable Secured Debt Document; provided, in the case
of Indebtedness referred to in this clause (2), that, except with respect to the
EFIH Notes:”

       

      Clause
(18) of the definition of “Permitted
Investments” is hereby amended and restated as follows: “(A) Investments
in Indebtedness of TCEH or EFH Corp. received by EFIH (i) in exchange for the
EFIH Notes in the exchange offers pursuant to which the 9.75% Notes and EFIH
Notes were issued or (ii) in exchange for Indebtedness of TCEH or EFH Corp.
received in exchange for the EFIH Notes in the exchange offers pursuant to which
the 9.75% Notes and EFIH Notes were issued and (B) Investments in Indebtedness
of EFH Corp. or its Subsidiaries received by EFIH prior to the date of the date
of this Supplemental Indenture in exchange for other Indebtedness of EFIH or any
Guarantor incurred under clause (2) of Section 4.09(b) hereof, including in the
case of both (A) and (B), for the avoidance of doubt, the exchanges of any such
Indebtedness, which shall be deemed to be “Permitted Investments”
hereunder.”

       

      Clauses
(19) and (20) of the definition of “Permitted
Investments” are hereby deleted in their entirety.

       

      The
definition of “Permitted Liens” is
hereby amended as follows:

       

      Clause
(7) is hereby amended and restated as follows: “Liens existing on the Issue
Date”.

       

      Clause
(45) is hereby amended and restated as follows: “[Intentionally
omitted].”

       

      Clauses
(1) and (2) of the definition of “Senior Indebtedness”
are hereby amended and restated as follows:

       

      “(1) all
Indebtedness of the Issuer or any Guarantor outstanding under the 9.75% Notes
and the related guarantees, the EFIH Notes and related guarantees, the Notes and
any related Guarantees or the Issuer’s guarantee of any Existing Notes incurred
prior to [insert date of this Supplemental Indenture] (including interest
accruing on or after the filing of any petition in bankruptcy or similar
proceeding or for reorganization of the Issuer or any Guarantor (at the rate
provided for in the documentation with respect thereto, regardless of whether or
not a claim for post-filing interest is allowed in such proceedings)), and any
and all other fees, expense reimbursement obligations, indemnification amounts,
penalties, and other amounts (whether existing on the Issue Date or thereafter
created or incurred) and all obligations of the Issuer or any Guarantor to
reimburse any bank or other Person in respect of amounts paid under letters of
credit, acceptances or other similar instruments;

       

      (2) all
Hedging Obligations of the Issuer or any Guarantor (and guarantees thereof)
owing to a lender or any Affiliate of such lender (or any Person that was a
lender or an Affiliate of such lender at the time the applicable agreement
giving rise to such Hedging Obligation was entered into); provided that such
Hedging Obligations are permitted to be incurred under the terms of this
Indenture”.

       

      Clauses
(f) and (g) of the proviso to the definition of “Senior Indebtedness”
are hereby deleted in their entirety.

       

      (h) Section
1.01 of the Base Indenture is hereby amended by deleting
the  definitions of “Collateral Posting Facility,” “Expenses Relating
to a Unit Outage,” “Shell Wind,” “TCEH Transfer” and “Unit” in their
entirety.

       

      (i) Section
1.02 of the Base Indenture is hereby amended by deleting the definitions from
the table “Permitted Transfer Supplemental Indenture,” “Successor EFIH Company”
and “TCEH Transfer Supplemental Indenture” in their entirety.

       

      ARTICLE
3

       

      AMENDMENTS OF ARTICLE
4

       

      Section
3.01                      Limitation on Restricted
Payments

       

      Section
1.02 .

       

      (a) Clause
(2) of Section 4.07(a) of the Base Indenture is hereby amended and restated in
its entirety as follows:

       

      “immediately
after giving effect to such transaction on a pro forma basis, the
Restricted Payment Coverage Ratio for the most recently ended four fiscal
quarters for which internal financial statements are available immediately
preceding the date of such Restricted Payment would have been at least 2.00 to
1.00; and”.

       

      (b) Subclause
(3)(a) of Section 4.07(a) of the Base Indenture is hereby amended and restated
in its entirety as follows:

       

      “50% of
the Consolidated Net Income of the Issuer for the period (taken as one
accounting period) beginning October 11, 2007, to the end of the Issuer’s most
recently ended fiscal quarter for which internal financial statements are
available at the time of such Restricted Payment, or, in the case such
Consolidated Net Income for such period is a deficit, minus 100% of such
deficit; plus”.

       

      (c) Clause
(9) of Section 4.07(b) of the Base Indenture is hereby amended and restated in
its entirety as follows:

       

      “the
declaration and payment of dividends on the Issuer’s common stock or membership
interests (or the payment of dividends to any direct or indirect parent entity
to fund a payment of dividends on such entity’s common stock), following
consummation of the first public offering of the Issuer’s common stock or
membership interests or the common stock of any of its direct or indirect parent
companies after the Closing Date, of up to 6% per annum of the net cash proceeds
received by or contributed to the Issuer in or from any such public offering,
other than public offerings with respect to the Issuer’s common stock registered
on Form S-4 or Form S-8 and other than any public sale constituting an Excluded
Contribution”.

       

      (d) Clause
(11) of Section 4.07(b) of the Base Indenture is hereby amended and restated as
follows:

       

      “(A)
other Restricted Payments in an aggregate amount taken together with all other
Restricted Payments made pursuant to this clause (11)(A) not to exceed $100.0
million; and (B) the making of Intercompany Loans to EFH Corp. prior to [insert
date of this Supplemental Indenture] and so long as EFIH is a Subsidiary of EFH
Corp. in amounts required (after taking into account any funds received by EFH
Corp. from its other Subsidiaries after the Secured Notes Issue Date and prior
to [insert date of this Supplemental Indenture] for such purpose) for EFH Corp.
to pay, in each case without duplication, (1) interest when due on the Existing
EFH Corp. Notes (other than any Existing EFH Corp. Notes then held by EFIH),
the  Notes and any Indebtedness incurred to replace, refund or
refinance any such debt and (2) any Optional Interest Repayment (as defined in
the 2017 Notes) or any similar payments on Indebtedness incurred to replace,
refund or refinance such Indebtedness; provided that in
connection with any such replacement, refunding or refinancing under this clause
(2), the aggregate principal amount of such Indebtedness is not increased
(except by an amount equal to accrued interest, fees and expenses payable in
connection therewith)”.

       

      (e) Clause
(13) of Section 4.07(b) of the Base Indenture is hereby amended and restated in
its entirety as follows:

       

      “any
Restricted Payment made as part of or in connection with the Transactions
(including payments made after the Closing Date in respect of the Issuer’s and
its Subsidiaries’ or parent companies’ long-term incentive plan or in respect of
tax gross-ups or other deferred compensation) and the fees and expenses related
thereto or used to fund amounts owed to Affiliates (including dividends to any
direct or indirect parent of the Issuer to permit payment by such parent of such
amount), in each case to the extent permitted by Section 4.11
hereof”.

       

      (f) Clause
(15) of Section 4.07(b) of the Base Indenture is hereby amended and restated in
its entirety as follows:

       

      “the
declaration and payment of dividends or distributions by the Issuer to, or the
making of loans to, any direct or indirect parent company in amounts required
(after taking into account any funds received by such parent company from its
other Subsidiaries after the Secured Notes Issue Date for such purpose) for any
direct or indirect parent companies to pay, in each case without
duplication,

       

      (a)           franchise
and excise taxes and other fees, taxes and expenses required to maintain their
corporate existence;

       

      (b)           foreign,
federal, state and local income taxes, to the extent such income taxes are
attributable to the income of the Issuer and its Restricted Subsidiaries and, to
the extent of the amount actually received from its Unrestricted Subsidiaries;
provided that
in each case the amount of such payments in any fiscal year does not exceed the
amount that the Issuer and its Subsidiaries would be required to pay in respect
of foreign, federal, state and local taxes for such fiscal year were the Issuer,
its Restricted Subsidiaries and its Unrestricted Subsidiaries (to the extent
described above) to pay such taxes separately from any such parent
entity;

       

      (c)           customary
salary, bonus and other benefits payable to officers and employees of any direct
or indirect parent company of the Issuer to the extent such salaries, bonuses
and other benefits are attributable to the ownership or operation of the Issuer
and its Subsidiaries;

       

      (d)           general
corporate operating and overhead costs and expenses of any direct or indirect
parent company of the Issuer to the extent such costs and expenses are
attributable to the ownership or operation of the Issuer and its
Subsidiaries;

       

      (e)           fees
and expenses other than to Affiliates of the Issuer related to any unsuccessful
equity or debt offering of such parent entity”.

       

      (g) Clauses
(16) of Section 4.07(b) of the Base Indenture is hereby amended and restated in
its entirety as follows:

       

      “(16)           Restricted
Payments made prior to [insert date of this Supplemental Indenture] to EFH Corp.
with the Net Proceeds from Asset Sales to be used by EFH Corp. to repay or
prepay Indebtedness of EFH Corp. that is guaranteed by EFIH and constitutes
Parity Lien Debt, to the extent the repayment or prepayment of such Indebtedness
is permitted by Section 4.10(b) or Section 4.10(f) hereof, or an Asset Sale
Offer or a Collateral Asset Sale Offer made in accordance with Section 4.10
hereof;”

       

      (h) Clauses
(17), (18), (19) and (20) are hereby added to Section 4.07(b) of the Base
Indenture:

       

      (17)           Restricted
Payments made prior to [insert date of this Supplemental Indenture] in the form
of a dividend to EFH Corp. (so long as EFIH is a Subsidiary of EFH Corp.) of (a)
any Existing EFH Corp. Notes or Indebtedness of TCEH received by EFIH (i) in
exchange for the EFIH Notes in the exchange offers pursuant to which the 9.75%
Notes and EFIH Notes were issued or otherwise contributed to it or (ii) in
exchange for Indebtedness of EFH Corp. or TCEH received in exchange for the EFIH
Notes in the exchange offers pursuant to which the 9.75% Notes and EFIH Notes
were issued or otherwise contributed to it, or (b) any Indebtedness of EFH Corp.
or its Subsidiaries existing on the Secured Notes Issue Date received by EFIH in
exchange for Indebtedness of the Issuer or any Guarantor permitted to be
incurred under clause (2) of Section 4.09(b) hereof, in each case, including any
payments received from the applicable obligor thereon to the extent such
payments are excluded when calculating Consolidated Net Income;

       

      (18)           Restricted
Payments made prior to [insert date of this Supplemental Indenture] to EFH Corp.
(so long as EFIH is a Subsidiary of EFH Corp.) in an aggregate amount not to
exceed EFH Corp.’s Ratable Portion of Oncor Dividends to the extent such
dividends have not been used by EFIH or any of its Restricted Subsidiaries to
make a Restricted Payment pursuant to Section 4.07(a) hereof; provided that the
proceeds of such Restricted Payments are used by EFH Corp. to pay interest on
the Existing EFH Corp. Notes, the Notes, any Parity Lien Debt of EFH Corp. or
any refinancings thereof;

       

      (19)           guarantees
of Indebtedness of EFH Corp. made prior to [insert date of this Supplemental
Indenture] to the extent permitted to be incurred under clause (2) of Section
4.09(b) hereof; or

       

      (20)           Restricted
Payments made prior to [insert date of this Supplemental Indenture] in the form
of a dividend to EFH Corp. from an Asset Sale Collateral Account in accordance
with Section 4.10(f) hereof, solely to fund scheduled interest payments when due
and payable on Indebtedness of EFH Corp. that is guaranteed by EFIH and
constitutes Parity Lien Debt; provided that any
individual Restricted Payment made pursuant to this clause (20) may not exceed
the amount of the next scheduled interest payment on such Parity Lien Debt of
EFH Corp. and that proceeds from an Asset Sale Collateral Account are being
applied pro
rata to make
scheduled interest payments on Parity Lien Debt of the Issuer”.

       

      Section
3.02                                Dividend and Other Payment
Restrictions Affecting Restricted Subsidiaries.

       

      (a) Clause
(1) of Section 4.08(b) of the Base Indenture is hereby amended and restated in
its entirety as follows:

       

      “contractual
encumbrances or restrictions in effect on the Issue Date, including pursuant to
the Existing Notes and related documentation”.

       

      (b) Subclause
(9)(B) of Section 4.08(b) of the Base Indenture is hereby amended and restated
in its entirety as follows:

       

      “other
Indebtedness, Disqualified Stock or Preferred Stock permitted to be incurred
subsequent to the Issue Date pursuant to the provisions of Section 4.09 hereof
and either (i) the provisions relating to such encumbrance or restriction
contained such Indebtedness are no less favorable to the Issuer, taken as a
whole, as determined by the Issuer in good faith, than the provisions contained
in the EFIH Indenture, as in effect on the Issue Date or the Indenture as
supplemented by this Supplemental Indenture or (ii) any such encumbrance or
restriction does not prohibit (except upon a default thereunder) the payment of
dividends or loans in an amount sufficient, as determined by the Issuer in good
faith, to make scheduled payments of cash interest of the Notes when
due”.

       

      Section
3.03                      Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred
Stock.

       

      

       

      (a) Section
4.09(a) of the Base Indenture is hereby amended and restated in its entirety as
follows:

       

      “The
Issuer shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, create, incur, issue, assume, guarantee or otherwise
become directly or indirectly liable, contingently or otherwise (collectively,
“incur” and,
collectively, an “incurrence”) with
respect to any Indebtedness (including Acquired Indebtedness), and the Issuer
shall not issue any shares of Disqualified Stock and shall not permit any
Restricted Subsidiary to issue any shares of Disqualified Stock or Preferred
Stock; provided, however, that the
Issuer may incur Indebtedness (including Acquired Indebtedness) or issue shares
of Disqualified Stock, and any of its Restricted Subsidiaries may incur
Indebtedness (including Acquired Indebtedness), issue shares of Disqualified
Stock and issue shares of Preferred Stock, if the Fixed Charge Coverage Ratio on
a consolidated basis for the Issuer and its Restricted Subsidiaries’ most
recently ended four fiscal quarters for which internal financial statements are
available immediately preceding the date on which such additional Indebtedness
is incurred or such Disqualified Stock or Preferred Stock is issued would have
been at least 2.00 to 1.00, determined on a pro forma basis
(including a pro forma application of
the net proceeds therefrom), as if the additional Indebtedness had been
incurred, or the Disqualified Stock or Preferred Stock had been issued, as the
case may be, and the application of proceeds therefrom had occurred at the
beginning of such four-quarter period.”

       

      (b) Clause
(1) of Section 4.09(b) of the Base Indenture is hereby amended and restated in
its entirety as follows:

       

      “the
incurrence of Indebtedness under Credit Facilities by the Issuer or any of its
Restricted Subsidiaries and the issuance and creation of letters of credit and
bankers’ acceptances thereunder (with letters of credit and bankers’ acceptances
being deemed to have a principal amount equal to the face amount thereof), up to
an aggregate principal amount of $750.0 million outstanding at any one
time”.

       

      (c) Clause
(3) of Section 4.09(b) of the Base Indenture is hereby amended and restated in
its entirety as follows:

       

      “Indebtedness
represented by the guarantee by EFIH of (i) Indebtedness of EFH Corp. in
existence on the Issue Date (other than Indebtedness described in clauses (1)
and (2) of this Section 4.09(b)), including its guarantees of the Existing EFH
Corp. Notes (including any PIK interest which may be paid with respect thereto
and guarantees thereof) and (ii) additional Indebtedness of EFH Corp. incurred
after the Issue Date (other than Indebtedness described in clauses (1) and (2)
of this Section 4.09(b)) and prior to [insert date of this Supplemental
Indenture]”.

       

      (d) Clause
(7) of Section 4.09(b) of the Base Indenture is hereby amended and restated in
its entirety as follows:

       

      “Indebtedness
of the Issuer to a Restricted Subsidiary; provided that any
such Indebtedness owing to a Restricted Subsidiary that is not a Guarantor is
expressly subordinated in right of payment to the Notes; provided, further, that any
subsequent issuance or transfer of any Capital Stock or any other event which
results in any Restricted Subsidiary ceasing to be a Restricted Subsidiary or
any other subsequent transfer of any such Indebtedness (except to the Issuer or
another Restricted Subsidiary) shall be deemed, in each case, to be an
incurrence of such Indebtedness not permitted by this clause (7)”.

       

      (e) Clause
(8) of Section 4.09(b) of the Base Indenture is hereby amended and restated in
its entirety as follows:

       

      “Indebtedness
of a Restricted Subsidiary to the Issuer or another Restricted Subsidiary; provided that if a
Guarantor incurs such Indebtedness to a Restricted Subsidiary that is not a
Guarantor, such Indebtedness is expressly subordinated in right of payment to
the Guarantee of the Notes of such Guarantor; provided, further, that any
subsequent issuance or transfer of any Capital Stock or any other event which
results in any Restricted Subsidiary ceasing to be a Restricted Subsidiary or
any other subsequent transfer of any such Indebtedness (except to the Issuer or
another Restricted Subsidiary) shall be deemed, in each case, to be an
incurrence of such Indebtedness not permitted by this clause (8)”.

       

      (f) Clause
(10) of Section 4.09(b) of the Base Indenture is hereby amended and restated in
its entirety as follows:

       

      “Hedging
Obligations; provided that such
Hedging Obligations are not entered into for speculative purposes (as determined
by the Issuer in its reasonable discretion acting in good faith)”.

       

      (g) Clause
(12) of Section 4.09(b) of the Base Indenture is hereby amended by deleting the
reference to the amount of “$1,750.0 million” and substituting for such amount
the amount of “$250.0 million”.

       

      (h) Clause
(14) of Section 4.09(b) of the Base Indenture is hereby amended and restated in
its entirety as follows:

       

      “Indebtedness,
Disqualified Stock or Preferred Stock of (x) the Issuer or a Restricted
Subsidiary incurred to finance an acquisition or (y) Persons that are acquired
by the Issuer or any Restricted Subsidiary or merged into the Issuer or a
Restricted Subsidiary in accordance with the terms of this Indenture; provided that after
giving effect to such acquisition or merger, either (a) the Issuer would be
permitted to incur at least $1.00 of additional Indebtedness pursuant to the
Fixed Charge Coverage Ratio test set forth in Section 4.09(a) hereof or (b) such
Fixed Charge Coverage Ratio of the Issuer and its Restricted Subsidiaries is
greater than immediately prior to such acquisition or merger”.

       

      (i) Clause
(2) of Section 4.09(c) of the Base Indenture is hereby amended by deleting the
proviso thereto.

       

      (j) Section
4.09(f) of the Base Indenture is hereby amended and restated in its entirety as
follows:

       

      “Notwithstanding
anything in this Section 4.09 to the contrary, the Issuer shall not, and shall
not permit [EFIH Finance] [ADD NAME OF CORPORATE CO-OBLIGOR IF NOT EFIH
FINANCE]  or any Guarantor to, directly or indirectly, incur any
Indebtedness (including Acquired Indebtedness) that is subordinated or junior in
right of payment to any Indebtedness of the Issuer, [EFIH Finance][ ADD NAME OF
CORPORATE CO-OBLIGOR IF NOT EFIH FINANCE] or such Guarantor, as the case may be,
unless such Indebtedness is expressly subordinated in right of payment to the
Notes or such Guarantor’s Guarantee to the extent and in the same manner as such
Indebtedness is subordinated to other Indebtedness of the Issuer, [EFIH
Finance][ ADD NAME OF CORPORATE CO-OBLIGOR IF NOT EFIH FINANCE] or such
Guarantor, as the case may be.”

       

      Section
3.04                      Asset
Sales.

       

       
 

       

      (a) Section
4.10(b) of the Base Indenture is hereby amended by adding the following clause
(1):

       

      “(1)           to
repay or prepay Parity Lien Debt of the Issuer (other than the Notes) (and, in
the case of revolving loans and other similar obligations, permanently reduce
the commitment thereunder) on a pro rata basis (including
to make Restricted Payments to EFH Corp. prior to [insert date of this
Supplemental Indenture] to permit EFH Corp. to repay or prepay Indebtedness of
EFH Corp. (other than Indebtedness owed to a Subsidiary of EFH Corp.) that is
guaranteed by EFIH and constitutes Parity Lien Debt), but only up to an
aggregate principal amount equal to such Net Proceeds to be used to repay
Indebtedness pursuant to this clause (1) multiplied by a fraction, the numerator
of which is the aggregate outstanding principal amount of such Parity Lien Debt
and the denominator of which is the aggregate principal amount of all Parity
Lien Debt (including the Notes), based on amounts outstanding on the date of
closing of such Asset Sale; provided that the
Issuer shall equally and ratably reduce Obligations under the Notes as provided
by Section 3.07 hereof through open-market purchases (to the extent such
purchases are at or above 100% of the principal amount thereof) or by making an
offer (in accordance with the procedures set forth in this Section 4.10) to all
Holders to purchase their Notes at 100% of the principal amount thereof plus the
amount of accrued but unpaid interest, if any”.

       

      (b) Clause
(1) of Section 4.10(b) of the Base Indenture is hereby renumbered as clause (2)
and amended by deleting subclause (C) and renumbering subclause (D) as subclause
(C), and by deleting the proviso thereto.

       

      (c) Clauses
(2) and (3) of Section 4.10(b) of the Base Indenture are hereby renumbered as
clauses (3), and (4), respectively.

       

      (d) The
references to clauses (2) and (3) in the final proviso to Section 4.10(b) of the
Base Indenture are hereby changed to references to clauses (3) and
(4).

       

      (e) Clauses
(1) and (2) of Section 4.10(f) of the Base Indenture are hereby amended and
restated in their entirety and clause (3) is hereby added as
follows:

       

      “(1) to repay or prepay Parity Lien
Debt (other than the Notes) (and, in the case of revolving loans and other
similar obligations, permanently reduce the commitment thereunder) on a pro rata basis
(including to make Restricted Payments to EFH Corp. prior to [insert date of
this Supplemental Indenture] to permit EFH Corp. to repay or prepay Indebtedness
of EFH Corp. that is guaranteed by EFIH and constitutes Parity Lien Debt), but
only up to an aggregate principal amount equal to such Net Proceeds to be used
to repay Indebtedness pursuant to this clause (1) multiplied by a fraction, the
numerator of which is the aggregate outstanding principal amount of such Parity
Lien Debt and the denominator of which is the aggregate outstanding principal
amount of all Parity Lien Debt (including the Notes), in each case based on
amounts outstanding on the date of closing of such Asset Sale; provided that the
Issuer shall equally and ratably reduce Obligations under the Notes as provided
in Section 3.07 hereof, through open-market purchases (to the extent such
purchases are at or above 100% of the principal amount thereof) or by making an
offer (in accordance with the procedures set forth in Section 4.10(h) hereof for
a Collateral Asset Sale Offer) to all Holders to purchase their Notes at 100% of
the principal amount thereof plus the amount of accrued and unpaid interest, if
any;

       

      (2) to repay, repurchase or redeem the
Notes as provided by Section 3.07 hereof, through open-market purchases (to the
extent such purchases are at or above 100% of the principal amount thereof) or
by making an offer (in accordance with the procedures set forth in this Section
4.10 for a Collateral Asset Sale Offer) to all Holders to purchase their Notes
at 100% of the principal amount thereof plus the amount of accrued but unpaid
interest, if any; or

       

      (3) to make an Investment in any Oncor
Subsidiary or Successor Oncor Business; provided such
Investment is received by the Issuer and shall be concurrently pledged as
Collateral for the benefit of the Holders of the Notes and holders of the other
Secured Debt Obligations; and provided, further that to the
extent the proceeds of any such Investment are subsequently dividended,
distributed or otherwise paid back to the Issuer without having been invested in
a good faith, bona fide manner, such proceeds shall continue to constitute Net
Proceeds from such Asset Sale.”

       

      (f) Section
4.10(h) of the Base Indenture is hereby amended and restated in its entirety as
follows:

       

      “Any Net Proceeds from Asset Sales of
Collateral or other Oncor-related Assets that are not invested or applied as
provided and within the time period set forth in Section 4.10(f) hereof shall be
deemed to constitute “Collateral Excess Proceeds.”  When the aggregate
amount of Collateral Excess Proceeds exceeds $200.0 million, the Issuer and/or
any of its Restricted Subsidiaries shall make an offer to all Holders of the
Notes and, if required or permitted by the terms of any Parity Lien Debt, to the
holders of such Parity Lien Debt (and if required or permitted by the terms of
any Indebtedness of EFH Corp. that is guaranteed by EFIH and constitutes Parity
Lien Debt, prior to [insert date of this Supplemental Indenture] EFH Corp. may
make an offer to all holders of such Indebtedness) (a “Collateral Asset Sale
Offer”), to purchase the maximum aggregate principal amount of the Notes
and such Parity Lien Debt that is a minimum of $2,000 or an integral multiple of
$1,000 in excess thereof that may be purchased out of the Collateral Excess
Proceeds at an offer price in cash in an amount equal to 100% of the principal
amount thereof, plus accrued and unpaid interest and Additional Interest, if
any, to the date fixed for the closing of such offer, in accordance with the
procedures set forth in this Indenture.  The Issuer and/or any of its
Restricted Subsidiaries shall commence a Collateral Asset Sale Offer with
respect to Collateral Excess Proceeds within 10 Business Days after the date
that Collateral Excess Proceeds exceed $200.0 million by mailing the notice
required pursuant to the terms of this Indenture, with a copy to the
Trustee.”

       

      Section
3.05                      Transactions with
Affiliates.

       

      Section
1.03 

       

      (a) Clause
(1) of Section 4.11(b) of the Base Indenture is hereby amended and restated in
its entirety as follows:

       

      “(1) transactions (A) between or among
the Issuer or any of its Restricted Subsidiaries or between or among the Issuer,
any of its Restricted Subsidiaries and the Oncor Subsidiaries in the ordinary
course of business or (B) prior to [insert date of this Supplemental Indenture]
between or among EFIH or any of its Restricted Subsidiaries and EFH Corp. or any
of its restricted Subsidiaries in the ordinary course of business”

       

      (b) Clause
(2) of Section 4.11(b) of the Base Indenture is hereby amended by changing the
reference to “Section 4.16” to a reference to “Section 5.01” of the Base
Indenture.

       

      (c) Clause
(3) of Section 4.11(b) of the Base Indenture is hereby amended and restated in
its entirety as follows:

       

      “(3) the payment, prior to [insert date
of this Supplemental Indenture], of management, consulting, monitoring and
advisory fees and related expenses to the Investors pursuant to the Sponsor
Management Agreement (plus any unpaid management, consulting, monitoring and
advisory fees and related expenses accrued in any prior year) and the
termination fees pursuant to the Sponsor Management Agreement, in each case as
in effect on the Issue Date and only to the extent not otherwise paid for with
funds (excluding any funds advanced on behalf of EFIH) provided by EFH Corp. or
its other Subsidiaries, or any amendment thereto (so long as any such amendment
is not disadvantageous in the good faith judgment of the Board of Directors of
the Issuer to the Holders when taken as a whole as compared to the Sponsor
Management Agreement in effect on the Issue Date)”

       

      (d) Clause
(8) of Section 4.11(b) of the Base Indenture is hereby amended and restated in
its entirety as follows:

       

      “the
Transactions (including payments made after the Closing Date in respect of the
Issuer’s and its Subsidiaries’ or parent companies’ long-term incentive plan or
in respect of tax gross-ups and other deferred compensation) and the payment of
all fees and expenses related to the Transactions.”

       

      (e) Clause
(10) of Section 4.11(b) of the Base Indenture is hereby amended and restated in
its entirety as follows:

       

      “the
issuance of Equity Interests (other than Disqualified Stock) of the Issuer to
any Permitted Holder or to any director, officer, employee or consultant of the
Issuer or any of its direct or indirect parent companies.”

       

      Section
3.06                      Liens.

       

                 Section
4.12(a) of the Base Indenture is hereby amended and restated in its entirety as
follows:

       

      “(a)           The
Issuer shall not, and shall not permit [EFIH Finance][ADD NAME OF CORPORATE
CO-OBLIGOR IF NOT EFIH FINANCE] or any Guarantor that is a Restricted Subsidiary
to, directly or indirectly, create, incur, assume or suffer to exist any Lien
(except Permitted Liens) that secures obligations under any Indebtedness or any
related guarantee, on any asset or property of the Issuer or any Guarantor that
is a Restricted Subsidiary, or any income or profits therefrom, or assign or
convey any right to receive income therefrom, unless:

       

      (1) in
the case of Liens securing Subordinated Indebtedness, the Notes and any related
Guarantees are secured by a Lien on such property, assets or proceeds that is
senior in priority to such Liens; or

       

      (2)           in
all other cases, the Notes or any Guarantees are equally and ratably secured or
are secured by a Lien on such property, assets or proceeds that is senior in
priority to such Liens;

       

      except that the
foregoing shall not apply to (a) Liens securing Indebtedness permitted to be
incurred pursuant to clause (2) or clause (3)(ii) of Section 4.09(b) hereof;
provided that
the Notes or any related Guarantee are secured on at least an equal and ratable
basis as such Indebtedness, (b) Liens securing Indebtedness permitted to be
incurred under Credit Facilities, including any letter of credit relating
thereto, that was permitted by the terms of this Indenture to be incurred
pursuant to clause (1) of Section 4.09(b) hereof and (c) Liens incurred to
secure Obligations in respect of any Indebtedness permitted to be incurred
pursuant to Section 4.09 hereof; provided that, with
respect to Liens securing Obligations permitted under this clause (c), at the
time of incurrence and after giving pro forma effect thereto,
the Consolidated Secured Debt Ratio for the most recently ended four full fiscal
quarters for which internal financial statements are available immediately
preceding the date on which such event for which such calculation is being made
shall occur would be no greater than 5.0 to 1.0.  Any Lien which is
granted to secure the Notes under this Section 4.12 shall be discharged at the
same time as the discharge of the Lien (other than through the exercise of
remedies with respect thereto) that gave rise to the obligation to so secure the
Notes.”

       

      Section
3.07                      Limitation on Guarantees of
Indebtedness by Restricted Subsidiaries.

       

      Section
1.04  Section
4.15 of the Base Indenture is hereby amended by amending and restating the first
paragraph thereof in its entirety as follows:

       

      “The
Issuer shall not permit any of its Wholly-Owned Subsidiaries that are Restricted
Subsidiaries (and non-Wholly-Owned Subsidiaries if such non-Wholly-Owned
Subsidiaries guarantee other capital markets debt securities of the Issuer,
[EFIH Finance][ADD NAME OF CORPORATE CO-OBLIGOR IF NOT EFIH FINANCE] or any
Guarantor), other than [EFIH Finance][ADD NAME OF CORPORATE CO-OBLIGOR IF NOT
EFIH FINANCE], a Guarantor, a Foreign Subsidiary or a Receivables Subsidiary, to
guarantee the payment of any Indebtedness of the Issuer, [EFIH Finance][ADD NAME
OF CORPORATE CO-OBLIGOR IF NOT EFIH FINANCE] or any Guarantor,
unless:”

       

      Section
3.08.                      Restrictions on Permitted
Asset Transfers.

       

      Section
1.05   Section
4.16 of the Base Indenture is hereby amended and restated in its entirety as
follows:

       

      “Section
4.16                                Limitations on Business
Activities of [EFIH Finance][ADD NAME OF CORPORATE CO-OBLIGOR IF NOT EFIH
FINANCE].

       

      [EFIH
Finance][ADD NAME OF CORPORATE CO-OBLIGOR IF NOT EFIH FINANCE]  may
not hold assets, become liable for any obligations or engage in any business
activities; provided that it may
be a co-obligor with respect to the Notes, the EFIH Notes or any other
Indebtedness issued by the Issuer and may engage in any activities directly
related thereto or necessary in connection therewith.  [EFIH
Finance][ADD NAME OF CORPORATE CO-OBLIGOR IF NOT EFIH FINANCE] shall be a
Wholly-Owned Subsidiary of the Issuer at all times.”

       

      Section
3.09                      Restrictions on TCEH
Transfers

       

      .  Section 4.17
of the Base Indenture is hereby deleted in its entirety and marked as
“[Reserved].”

       

      Section
3.10                      Restrictions on Certain
Investments in Oncor Subsidiaries and the Collateral.

       

      Section
1.06  

       

      (a) Section
4.18(a) of the Base Indenture is hereby amended and restated in its entirety as
follows:

       

      “The
Issuer shall not permit any Restricted Subsidiary to hold any Equity Interests
in, or Indebtedness of, or other Investments in, any of the Oncor Subsidiaries
or any Successor Oncor Business or any other Collateral.”

       

      (b)  Section
4.18(d) of the Base Indenture is hereby amended and restated in its entirety as
follows:

       

      “The
Issuer shall not sell, assign, transfer, convey or otherwise dispose of any
Collateral, including any consideration (other than cash and Cash Equivalents)
received by the Issuer in an Asset Sale, including in respect of a Permitted
Asset Swap of Collateral, except in connection with a sale of all or
substantially all of the assets of the Issuer in a manner permitted by Section
5.01 hereof or pursuant to an Asset Sale that complies with Section 4.10 hereof
pertaining to an Asset Sale of Collateral.”

       

      ARTICLE
4

       

      AMENDMENT OF ARTICLE
5

       

      Section
4.01                      Merger, Consolidation, or
Sale of All or Substantially All Assets

       

      .  Section
5.01 of the Base Indenture is hereby amended and restated in its entirety as
follows:

       

      “(a)           The
Issuer shall not consolidate or merge with or into or wind up into (whether or
not the Issuer is the surviving corporation), or sell, assign, transfer, lease,
convey or otherwise dispose of all or substantially all of its properties or
assets, in one or more related transactions, to any Person unless:

       

      (1)           the
Issuer is the surviving corporation or the Person formed by or surviving any
such consolidation, wind-up or merger (if other than the Issuer) or to which
such sale, assignment, transfer, lease, conveyance or other disposition shall
have been made is a corporation, partnership, limited liability company or trust
organized or existing under the laws of the jurisdiction of organization of the
Issuer or the laws of the United States, any state thereof, the District of
Columbia, or any territory thereof (such Person, as the case may be, being
herein called the “Successor
Company”);

       

      (2)           the
Successor Company, if other than the Issuer, and, to the extent the Successor
Company is not a corporation, a Subsidiary of such Successor Company that is a
co-obligor and a corporation organized or existing under the laws of the United
States, any state of the United States, the District of Columbia or any
territory thereof, expressly assumes (i) all the obligations of the Issuer under
the Notes, this Indenture and the Security Documents to which it is a party,
pursuant to a supplemental indenture or other document or instrument in form
reasonably satisfactory to the Trustee and (ii) the Registration Rights
Agreement;

       

      (3)           immediately
after such transaction, no Default exists;

       

      (4)           immediately
after giving pro
forma effect to such transaction and any related financing transactions
(including, without limitation, any transaction the proceeds of which are
applied to reduce the Indebtedness of the Successor Company or the Issuer, as
the case may be), as if such transactions had occurred at the beginning of the
applicable four-quarter period,

       

      (A)           the
Successor Company would be permitted to incur at least $1.00 of additional
Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in
Section 4.09(a) hereof, or

       

      (B)           such
Fixed Charge Coverage Ratio for the Successor Company and its Restricted
Subsidiaries would be greater than such ratio for the Issuer and its Restricted
Subsidiaries immediately prior to such transaction;

       

      (5)           in
connection with a Permitted Asset Transfer, the rating on the Notes shall not
have been downgraded by two or more of the Rating Agencies (or, if the Notes are
rated by only one Rating Agency at the time of the first notice of such
Permitted Asset Transfer, such Rating Agency) during the period commencing 30
days prior to the first public notice of the occurrence of a Permitted Asset
Transfer or the intention of the Issuer or any Subsidiary thereof to effect a
Permitted Asset Transfer and ending on the date 60 days after such notice
relative to the rating at the start of such period;

       

      (6)           each
Guarantor, unless it is the other party to the transactions described above, in
which case clause (1)(B) of Section 5.01(c) hereof shall apply, shall have by a
supplemental indenture confirmed that its Guarantee and any Security Documents
to which it is a party shall apply to such Person’s obligations under this
Indenture, the Notes and the Registration Rights Agreement; and

       

      (7)           the
Issuer shall have delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each stating that such consolidation, wind-up, merger or
transfer and such supplemental indenture, if any, comply with this Indenture
and, if a supplemental indenture is required in connection with such
transaction, such supplemental indenture shall comply with the applicable
provisions of this Indenture;

       

      provided, that for
the purposes of this Section 5.01 only, a transaction meeting the requirements
of the proviso to clause (1) under the definition of “Change of Control” shall
not be deemed to be a sale, assignment, transfer, conveyance or other
disposition of all or substantially all of the properties or assets of the
Issuer and its Subsidiaries.  For the avoidance of doubt, the Issuer
may consummate a transaction meeting the requirements of the proviso to clause
(1) under the definition of “Change of Control” without complying with this
Section 5.01, and the determination in the preceding proviso shall not affect
the determination of what constitutes all or substantially all the assets of the
Issuer and its Subsidiaries under any other agreement to which the Issuer is a
party.

      

      (b)           Notwithstanding
clauses (3) and (4) of Section 5.01(a) hereof,

       

      (1)           any
Restricted Subsidiary may consolidate with or merge into or transfer all or part
of its properties and assets to the Issuer, and

       

      (2)           the
Issuer may merge with an Affiliate of the Issuer solely for the purpose of
reincorporating the Issuer in a State of the United States, the District of
Columbia or any territory thereof so long as the amount of Indebtedness of the
Issuer and its Restricted Subsidiaries is not increased thereby.

       

      (c)           Subject
to Section 11.06 hereof, no Guarantor shall, and the Issuer shall not permit any
Guarantor to, consolidate or merge with or into or wind up into (whether or not
the Issuer or the Guarantor is the surviving corporation), or sell, assign,
transfer, lease, convey or otherwise dispose of all or substantially all of its
properties or assets, in one or more related transactions, to any Person
unless:

       

      (1)           (A)  such
Guarantor is the surviving corporation or the Person formed by or surviving any
such consolidation, wind-up or merger (if other than such Guarantor) or to which
such sale, assignment, transfer, lease, conveyance or other disposition shall
have been made is a corporation, partnership, limited partnership, limited
liability corporation or trust organized or existing under the laws of the
jurisdiction of organization of such Guarantor, as the case may be, or the laws
of the United States, any state thereof, the District of Columbia, or any
territory thereof (such Guarantor or such Person, as the case may be, being
herein called the “Successor
Person”);

       

      (B)           the
Successor Person, if other than such Guarantor, expressly assumes all the
obligations of such Guarantor under this Indenture and such Guarantor’s related
Guarantee and any Security Documents to which such Guarantor is a party pursuant
to supplemental indentures or other documents or instruments in form reasonably
satisfactory to the Trustee;

       

      (C)           immediately
after such transaction, no Default exists; and

       

      (D)           the
Issuer shall have delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each stating that such consolidation, wind-up, merger or
transfer and such supplemental indentures, if any, comply with this Indenture;
or

       

      (2)           the
transaction is made in compliance with Section 4.10 hereof.

       

      (d)           Notwithstanding
Section 5.01(c) hereof, any Guarantor may (i) merge into or transfer all or
part of its properties and assets to another Guarantor or the Issuer,
(ii) merge with an Affiliate of the Issuer solely for the purpose of
reincorporating the Guarantor in the United States, any state thereof, the
District of Columbia or any territory thereof or (iii) convert into a
corporation, partnership, limited partnership, limited liability corporation or
trust organized or existing under the laws of the jurisdiction of organization
of such Guarantor.

       

      (e)           [EFIH
Finance][ADD NAME OF CORPORATE CO-OBLIGOR IF NOT EFIH FINANCE] may not
consolidate or merge with or into or wind up into (whether or not [EFIH
Finance][ADD NAME OF CORPORATE CO-OBLIGOR IF NOT EFIH FINANCE] is the surviving
corporation), or sell, assign, transfer, lease, convey or otherwise dispose of
all or substantially all of [EFIH Finance][ADD NAME OF CORPORATE CO-OBLIGOR IF
NOT EFIH FINANCE]’s properties or assets, in one or more related transactions,
to any Person unless:

       

      (1)(A)                      concurrently
therewith, a corporate Wholly-Owned Subsidiary of the Issuer that is a
Restricted Subsidiary organized or existing under the laws of the United States,
any state thereof, the District of Columbia, or any territory thereof expressly
assumes all the obligations of [EFIH Finance][ADD NAME OF CORPORATE CO-OBLIGOR
IF NOT EFIH FINANCE] under the Notes and this Indenture pursuant to a
supplemental indenture or other documents or instruments in form reasonably
satisfactory to the Trustee; or

       

      (B)           after
giving effect thereto, at least one obligor on the Notes shall be a corporation
organized or existing under the laws of the United States, any state thereof,
the District of Columbia, or any territory thereof; and

       

      (2)           immediately
after such transaction, no Default exists; and

       

      (3)           [EFIH
Finance][ADD NAME OF CORPORATE CO-OBLIGOR IF NOT EFIH FINANCE] shall have
delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel,
each stating that such consolidation, wind-up, merger or transfer and such
supplemental indenture, if any, comply with this Indenture and, if a
supplemental indenture is required in connection with such transaction, such
supplement shall comply with the applicable provisions of this
Indenture.”

       

      ARTICLE
5

      AMENDMENT OF ARTICLE
8

       

      Section
5.01                      Covenant
Defeasance

       

      Section
1.07 .  Section
8.03 of the Base Indenture is hereby amended and restated in its entirety as
follows:

       

      “Upon the
Issuer’s exercise under Section 8.01 hereof of the option applicable to this
Section 8.03, the Collateral shall be released from the Lien securing the Notes
as provided in Section 10.06 hereof, and the Issuer and the Guarantors shall,
subject to the satisfaction of the conditions set forth in Section 8.04 hereof,
be released from their obligations under the covenants contained in Sections
4.03, 4.04, 4.05, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15, 4.16,
4.18, 4.19, 4.20 and 4.21 hereof and clauses (3), (4) and (5) of Section
5.01(a), Sections 5.01(c) and 5.01(d) hereof with respect to the outstanding
Notes on and after the date the conditions set forth in Section 8.04 hereof are
satisfied (“Covenant
Defeasance”), and the Notes shall thereafter be deemed not “outstanding”
for the purposes of any direction, waiver, consent or declaration or act of
Holders (and the consequences of any thereof) in connection with such covenants,
but shall continue to be deemed “outstanding” for all other purposes hereunder
(it being understood that such Notes shall not be deemed outstanding for
accounting purposes).  For this purpose, Covenant Defeasance means
that, with respect to the outstanding Notes, the Issuer may omit to comply with
and shall have no liability in respect of any term, condition or limitation set
forth in any such covenant, whether directly or indirectly, by reason of any
reference elsewhere herein to any such covenant or by reason of any reference in
any such covenant to any other provision herein or in any other document and
such omission to comply shall not constitute a Default or an Event of Default
under Section 6.01 hereof, but, except as specified above, the remainder of this
Indenture and such Notes shall be unaffected thereby.  In addition,
upon the Issuer’s exercise under Section 8.01 hereof of the option applicable to
this Section 8.03 hereof, subject to the satisfaction of the conditions set
forth in Section 8.04 hereof, clauses (3), (4), (5) and (6) of Section 6.01(a)
hereof (solely with respect to Restricted Subsidiaries or groups of Restricted
Subsidiaries that are Significant Subsidiaries), clause (7) of Section 6.01(a)
hereof (solely with respect to Restricted Subsidiaries or groups of Restricted
Subsidiaries that are Significant Subsidiaries), and clauses (8) and (9) of
Section 6.01(a) hereof shall not constitute Events of Default.”

       

      ARTICLE
6

       

      AMENDMENT OF ARTICLE
9

       

      Section
6.01                      Without Consent of Holders
of Notes

       

      .  Section
9.01(15) of the Base Indenture is hereby deleted in its entirety and clause (16)
of Section 9.01 of the Base Indenture is hereby renumbered as clause
(15).

       

      ARTICLE
7

      AMENDMENT OF ARTICLE
10

       

      Section
7.01                      Ranking of Parity
Liens

       

      . Section
10.02 of the Base Indenture is hereby amended by amending and restating the
first paragraph thereto as follows:

       

      “(a)           The
Issuer shall ensure that the Junior Lien Documents, if any, provide that,
notwithstanding:”

       

      Section
7.02                      Relative
Rights

       

      .  Section
10.03 of the Base Indenture is hereby amended by amending and restating the
first paragraph and clause (1) thereof as follows:

       

      “(a)           The Issuer shall ensure that
nothing in any Junior Lien Document shall:

       

      (1)           impair,
as between the Issuer and the Holders of the Notes, the obligation of the Issuer
to pay principal, premium, if any, and interest and Additional Interest, if any,
on the Notes in accordance with their terms or any other obligation of the
Issuer under this Indenture;”

       

      Section
7.03                      Security
Documents

       

      .  Section
10.04 of the Base Indenture is hereby amended by amending and restating the
first paragraph thereto as follows:

       

      “The due and punctual
payment of the principal, premium, if any, and interest (including any
Additional Interest) on the Notes when and as the same shall be due and payable,
whether on an Interest Payment Date, at maturity, by acceleration, repurchase,
redemption or otherwise, and interest on the overdue principal, premium, if any,
and interest (to the extent permitted by law), on the Notes and performance of
all other Obligations of the Issuer to the Holders of Notes or the Trustee under
this Indenture and the Notes, according to the terms hereunder or thereunder,
are secured as provided in the Pledge Agreement and the Collateral Trust
Agreement.  Each Holder of Notes, by its acceptance thereof, consents
and agrees to the terms of the Pledge Agreement and Collateral Trust Agreement
(including, without limitation, the provisions providing for foreclosure and
release of Collateral) as the same may be in effect or may be amended from time
to time in accordance with their terms and authorizes and directs the Collateral
Trustee and/or the Trustee (as the case may be) to enter into the Pledge
Agreement, the Collateral Trust Agreement and any other Security Document and to
perform its obligations and exercise its rights thereunder in accordance
therewith.”

       

      ARTICLE
8

      AMENDMENT OF ARTICLE
11

       

      Section
8.01                      Release of
Guarantees

       

      Section
1.08 .

       

      (a) Section
11.06(a)(1) of the Base Indenture is hereby amended and restated as
follows:

       

      “(1)           any
sale, exchange or transfer (by merger, wind-up, consolidation or otherwise) of
the Capital Stock of such Guarantor (including any sale, exchange or transfer),
after which the applicable Guarantor is no longer a Restricted Subsidiary or
sale of all or substantially all the assets of such Guarantor, which sale,
exchange or transfer is made in compliance with the applicable provisions of
this Indenture;”

       

      (b) Section
11.06(b) of the Base Indenture is hereby deleted in its entirety.

       

      (c) Section
11.06(c) of the Base Indenture is hereby deleted in its entirety.

       

      ARTICLE
9

       

      MISCELLANEOUS
PROVISIONS

       

      Section
9.01                      Ratification of Base
Indenture.  Except as expressly modified or amended hereby, the
Base Indenture continues in full force and effect and is in all respects
confirmed, ratified and preserved and the provisions thereof shall be applicable
to the Notes and this Supplemental Indenture.

       

      Section
9.02                      Modification and
Deletion of Certain
Exhibits to the Base Indenture

       

      .   Exhibits
A and D of the Base Indenture are hereby modified to conform to the revisions
provided above in Articles 2 through 8.  Exhibits E and F of the Base
Indenture are hereby deleted and marked as “[Reserved].”

       

      Section
9.03                      Notices. The address
for the Issuer stated in Section 13.02 of the Base Indenture is hereby changed
to the following:

       

      
        	
                [_______________________________]

              
	
                [_______________________________]

              
	
                [_______________________________]

              
	
                [_______________________________]

              
	
                [_______________________________]

              
	 
      

      

      

       

      Section
9.04                      Conflict with Trust
Indenture Act.  If any provision of this Supplemental Indenture
limits, qualifies or conflicts with any provision of the Trust Indenture Act
that is required under the Trust Indenture Act to be part of and govern any
provision of this Supplemental Indenture, the provision of the Trust Indenture
Act shall control.  If any provision of this Supplemental Indenture
modifies or excludes any provision of the Trust Indenture Act that may be so
modified or excluded, the provision of the Trust Indenture Act shall be deemed
to apply to the Indenture as so modified or to be excluded by this Supplemental
Indenture, as the case may be.

       

      Section
9.05                      Provisions Binding on
Issuer’s Successors

       

      .  All agreements
of the Issuer in this Supplemental Indenture shall bind its
successors.  All agreements of the Trustee in this Supplemental
Indenture shall bind its successors.  All agreements of each Guarantor
in this Supplemental Indenture shall bind its successors, except as otherwise
provided in Section 11.06 to the Base Indenture.

       

      Section
9.06                      Governing
Law

       

      .  THIS
SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK.

       

      Section
9.07                      Benefits of
Indenture

       

      .  Nothing
in this Supplemental Indenture, expressed or implied, shall give to any person,
other than the parties hereto and their successors hereunder, and the Holders,
any benefit or any legal or equitable right, remedy or claim under this
Supplemental Indenture.

       

      Section
9.08                      Headings,
Etc.

       

        The
headings of the Articles and Sections of this Supplemental Indenture have been
inserted for convenience of reference only, are not to be considered a part of
this Supplemental Indenture and shall in no way modify or restrict any of the
terms or provisions hereof.

       

      Section
9.09                      Severability.  In
case any provision in this Supplemental Indenture 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
9.10                      Counterpart
Originals

       

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

       

      Section
9.11                      Trustee

       

      .  The Trustee
makes no representations as to the validity or sufficiency of this Supplemental
Indenture.  The statements and recitals herein are deemed to be those
of the Issuer and not of the Trustee.

       

      Section
9.12                      Further Instruments and
Acts

       

      .  Upon
request of the Trustee, the Issuer will execute and deliver such further
instruments and do such further acts as may be reasonably necessary or proper to
carry out more effectively the purposes of this Supplemental
Indenture.

       

      Section
9.13                      Waiver of Jury
Trial

       

      .  EACH
OF THE ISSUER, THE GUARANTORS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY
IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL
INDENTURE OR THE TRANSACTIONS CONTEMPLATED HEREBY.

       

      Section
9.14                      Force
Majeure

       

      .  In no event
shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations under this Supplemental Indenture arising out of
or caused by, directly or indirectly, forces beyond its reasonable control,
including without limitation strikes, work stoppages, accidents, acts of war or
terrorism, civil or military disturbances, nuclear or natural catastrophes or
acts of God, and interruptions, loss or malfunctions of utilities,
communications or computer (software or hardware) services.

       

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

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

              
	 
      	 
      
	 
      	
                [NAME
      OF SUCCESSOR EFIH COMPANY][ENERGY FUTURE INTERMEDIATE HOLDING COMPANY
      LLC]

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                By:                                                                            

              
	 
      	
                Name:

              
	 
      	
                Title:

              
	 
      	 
      
	 
      	 
      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	 
      	
                ENERGY
      FUTURE COMPETITIVE HOLDINGS COMPANY

                 

              
	 
      	
                ENERGY
      FUTURE INTERMEDIATE HOLDING COMPANY LLC

              
	 
      	 
      
	 
      	
                [NEW
      GUARANTOR]

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                By:                                                                            

              
	 
      	
                Name:

              
	 
      	
                Title:

              
	 
      	 
      
	 
      	 
      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	 
      	
                THE
      BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                By:                                                                            

              
	 
      	
                Name:

              
	 
      	
                Title:

              

      

      

      

       

      EXHIBIT
F

    

    
       

      [FORM OF TCEH TRANSFER SUPPLEMENTAL
INDENTURE]

       

      ______________________________________________________________________________

       

      ENERGY FUTURE HOLDINGS
CORP.

       

      AND
EACH OF THE GUARANTORS PARTY HERETO

       

      10.000%
SENIOR SECURED NOTES DUE 2020

       

      
        	 
      
	
                SUPPLEMENTAL
      INDENTURE

              
	
                TO

              
	 
      
	
                INDENTURE,
      DATED AS OF JANUARY 12, 2010

              
	 
      
	 
      
	
                DATED
      AS OF [___________], 20[__]

              
	 
      

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      [FORM OF]
TCEH TRANSFER SUPPLEMENTAL INDENTURE

       

      10.000%
Senior Secured Notes due 2020

       

      THIS
[___] SUPPLEMENTAL INDENTURE, dated as of [_____], 20[__] (this “Supplemental
Indenture”), among Energy Future Holdings Corp., a Texas corporation (the
“Issuer”), each
of the Guarantors (as defined in the Base Indenture (defined below)) and The
Bank of New York Mellon Trust Company, N.A., as Trustee (in such capacity, the
“Trustee”)
under the Base Indenture.

       

      RECITALS
OF THE COMPANY:

       

      WHEREAS,
the Issuer, the Guarantors and the Trustee have heretofore entered into an
Indenture dated as of January 12, 2010 (the “Base Indenture”),
providing for the issuance by the Issuer of 10.000% Senior Secured Notes due
2020 (the “Notes”);

       

      WHEREAS,
Section 4.17 of the Base Indenture requires the Issuer and the Trustee to
enter into this Supplemental Indenture in connection with the consummation of a
TCEH Transfer;

       

      WHEREAS,
[the Issuer] [one of the Restricted Subsidiaries of the Issuer] intends to
consummate a TCEH Transfer pursuant to Section 4.17 of the Base
Indenture;

       

      WHEREAS,
all conditions necessary to authorize the execution and delivery of this
Supplemental Indenture by the Issuer and the Guarantors and to make this
Supplemental Indenture valid and binding on the Issuer and the Guarantors have
been complied with or have been done or performed;

       

      WHEREAS,
pursuant to Section 11.06(a)(1), EFCH shall be automatically released from its
Guarantee of the Notes in connection with the TCEH Transfer;

       

      WHEREAS,
Section 9.01(15) of the Base Indenture provides that the Issuer, the Guarantors
and the Trustee may enter into a TCEH Transfer Supplemental Indenture without
obtaining the consent of any Holders of the Notes to amend the Base Indenture in
connection with the consummation of a TCEH Transfer in the manner set forth in
Section 4.17 of the Base Indenture; and

       

      NOW
THEREFORE, for and in consideration of the foregoing and of the covenants
contained herein and in the Base Indenture, the Issuer, the Guarantors and the
Trustee mutually covenant and agree, for the equal and ratable benefit of all
Holders of the Notes as follows:

       

      ARTICLE
1                      

       

      DEFINITIONS

       

      Section
1.01 Relation to Base
Indenture

       

      .  This Supplemental Indenture
constitutes an integral part of the Base Indenture.

       

      Section
1.02 Release of EFCH
Guarantee.  The Guarantee of EFCH with respect to the Notes and
pursuant to the Indenture is hereby released and terminated and EFCH is hereby
released from all liability as an obligor under the Indenture and the Notes and
its Guarantee issued thereunder.

       

      Section
1.03 Definitions

       

      .

       

      (a) For all
purposes of this Supplemental Indenture, except as otherwise expressly provided
for or unless the context otherwise requires:

       

      
        	
                (i)  

              	
                Capitalized
      terms used but not defined herein shall have the respective meanings
      assigned to them in the Base
Indenture;

              

      

       

      
        	
                (ii)  

              	
                Terms
      defined both herein and in the Base Indenture shall have the meanings
      assigned to them herein;

              

      

       

      
        	
                (iii)  

              	
                All
      references herein to Articles and Sections, unless otherwise specified,
      refer to the corresponding Articles and Sections of this Supplemental
      Indenture; and

              

      

       

      
        	
                (iv)  

              	
                All
      other terms used in this Supplemental Indenture, which are defined in the
      Trust Indenture Act or which are by reference therein defined in the
      Securities Act (except as herein otherwise expressly provided or unless
      the context otherwise requires) shall have the meanings assigned to such
      terms in the Trust Indenture Act and in the Securities Act as in force at
      the date of the execution of this Supplemental Indenture.  The
      words “herein,” “hereof,” “hereunder,” and words of similar import refer
      to this Supplemental Indenture as a whole and not to any particular
      Article, Section or other subdivision.  The terms defined in
      this Article include the plural as well as the
    singular.

              

      

       

      (b) Section 1.01
of the Base Indenture is hereby amended by replacing certain definitions
contained therein in their entirety with the following:

       

      “Consolidated Leverage
Ratio” as of any date of determination, means the ratio of
(x) Consolidated Total Indebtedness (treating the Oncor Subsidiaries as
Restricted Subsidiaries for purposes of such calculation) computed as of the end
of the most recent fiscal quarter for which internal financial statements are
available immediately preceding the date on which such event for which such
calculation is being made shall occur to (y) the aggregate amount of EBITDA
of the Issuer (treating the Oncor Subsidiaries as Restricted Subsidiaries for
purposes of such calculation) for the period of the most recently ended four
full consecutive fiscal quarters for which internal financial statements are
available immediately preceding the date on which such event for which such
calculation is being made shall occur, in each case with such pro forma
adjustments to Consolidated Total Indebtedness and such EBITDA as are
appropriate and consistent with the pro forma adjustment provisions set forth in
the definition of “Fixed Charge Coverage Ratio.”

       

      “Credit Facilities”
means, with respect to the Issuer or any of its Restricted Subsidiaries, one or
more debt facilities or other financing arrangements (including, without
limitation, commercial paper facilities or indentures) providing for revolving
credit loans, term loans, letters of credit or other long-term indebtedness,
including any notes, mortgages, guarantees, collateral documents, instruments
and agreements executed in connection therewith, and any amendments,
supplements, modifications, extensions, renewals, restatements or refundings
thereof and any indentures or credit facilities or commercial paper facilities
that replace, refund or refinance any part of the loans, notes, other credit
facilities or commitments thereunder, including any such replacement, refunding
or refinancing facility or indenture that increases the amount permitted to be
borrowed thereunder or alters the maturity thereof (provided that such
increase in borrowings is permitted under Section 4.09 hereof) or adds
Restricted Subsidiaries as additional borrowers or guarantors thereunder and
whether by the same or any other agent, lender or group of lenders.

       

      “Deposit L/C Loan”
means Deposit L/C Loans under, and as defined in, any Credit
Facilities.

       

      “Existing Notes”
means

       

      · Energy
Future Holdings Corp. 5.55% Fixed Senior Notes Series P due 2014;

       

      · Energy
Future Holdings Corp. 6.50% Fixed Senior Notes Series Q due 2024;

       

      · Energy
Future Holdings Corp. 6.55% Fixed Senior Notes Series R due 2034;

       

      · Energy
Future Holdings Corp.  10.875% Senior Notes due 2017;

       

      · Energy
Future Holdings Corp. 11.250%/12.000% Senior Toggle Notes due 2017;
and

       

      · 9.75%
Notes.

       

      in each
case to the extent outstanding on the Issue Date.

       

      “Incremental Deposit L/C
Loans” means any Incremental Deposit L/C Loans under, and as defined in,
any Credit Facilities.

       

      “Unrestricted
Subsidiary” means:

       

      (1) each of
the Oncor Subsidiaries;

       

      (2) any
Subsidiary of the Issuer other than EFIH or any other Guarantor owning
Collateral which at the time of determination is an Unrestricted Subsidiary (as
designated by the Issuer, as provided below); and

       

      (3) any
Subsidiary of an Unrestricted Subsidiary.

       

      The
Issuer may designate any Subsidiary of the Issuer (including any existing
Subsidiary and any newly acquired or newly formed Subsidiary) other than EFIH or
any other Guarantor owning Collateral to be an Unrestricted Subsidiary unless
such Subsidiary or any of its Subsidiaries owns any Equity Interests or
Indebtedness of, or owns or holds any Lien on, any property of, the Issuer or
any Subsidiary of the Issuer (other than solely any Subsidiary of the Subsidiary
to be so designated); provided
that

       

      (1) any
Unrestricted Subsidiary must be an entity of which the Equity Interests entitled
to cast at least a majority of the votes that may be cast by all Equity
Interests having ordinary voting power for the election of directors or Persons
performing a similar function are owned, directly or indirectly, by the
Issuer;

       

      (2) such
designation complies with Section 4.07 hereof; and

       

      (3) each
of:

       

      (a) the
Subsidiary to be so designated; and

       

      (b) its
Subsidiaries

       

      has not
at the time of designation, and does not thereafter, create, incur, issue,
assume, guarantee or otherwise become directly or indirectly liable with respect
to any Indebtedness pursuant to which the lender has recourse to any of the
assets of the Issuer or any Restricted Subsidiary.

       

      The
Issuer may designate any Unrestricted Subsidiary to be a Restricted Subsidiary;
provided that,
immediately after giving effect to such designation, no Default shall have
occurred and be continuing and in the case of any Subsidiary of the Issuer, and
(A) the Issuer could incur at least $1.00 of additional Indebtedness
pursuant to clause (i) of the Fixed Charge Coverage Ratio test as set forth
in Section 4.09(a) hereof; or (B) the Fixed Charge Coverage Ratio for
the Issuer and its Restricted Subsidiaries would be greater than such ratio for
the Issuer and its Restricted Subsidiaries immediately prior to such
designation, in each case on a pro forma basis taking
into account such designation.

       

      Any such
designation by the Issuer shall be notified by the Issuer to the Trustee by
promptly filing with the Trustee a copy of the resolution of the Board of
Directors of the Issuer or any committee thereof giving effect to such
designation and an Officer’s Certificate certifying that such designation
complied with the foregoing provisions.

       

      (c) Section 1.01
of the Base Indenture is hereby amended by amending the following definitions as
follows:

       

      Clause (1)
of the definition of “Change of Control” is
amended and restated as follows:  “the sale, lease or transfer, in one
or a series of related transactions, of all or substantially all of the assets
of the Issuer and its Subsidiaries, taken as a whole, to any Person other than a
Permitted Holder, other than (A) a transaction meeting the requirements of
the proviso to clause (3) of this definition of “Change of Control” and
(B) any foreclosure on the Collateral”.

       

      Clause (1)(d)
of the definition of “EBITDA” is amended
and restated as follows:  “any fees, expenses or charges (other than
depreciation or amortization expense) related to any Equity Offering, Permitted
Investment, acquisition, disposition, recapitalization or the incurrence of
Indebtedness permitted to be incurred by such Person and its Restricted
Subsidiaries under this Indenture (including a refinancing transaction or
amendment or other modification of any debt instrument) (whether or not
successful), including (i) such fees, expenses or charges related to the
offering of the Initial Notes, the exchange offers pursuant to which the 9.75%
Notes and EFIH Notes were issued, the offering of any Additional Notes, Exchange
Notes or any additional 9.75% Notes or EFIH Notes, any Credit Facilities and any
Receivables Facility, (ii) any amendment or other modification of the
Notes, (iii) any such transaction consummated prior to the Closing Date and
any such transaction undertaken but not completed and (iv) any charges or
non-recurring merger costs as a result of any such transaction, in each case,
deducted (and not added back) in computing Consolidated Net Income; plus”.

       

      Clause (1)(i)
of the definition of “EBITDA” is hereby
amended by deleting the reference to the amount of “$150.0 million” and
substituting for such amount the amount of “$50.0 million”.

       

      Clause (1)(l)
of the definition of “EBITDA” is hereby
amended and restated as follows:  “Intentionally
omitted.”

       

      Clauses (18),
(19) and (20) of the definition of “Permitted
Investments” are hereby deleted in their entirety.

       

      The
definition of “Permitted Liens” is
hereby amended as follows:

       

      Clause (7)
is hereby amended and restated as follows:  “Liens existing on the
Issue Date”.

       

      Clause (45)
is hereby amended and restated as follows:  “Intentionally
omitted.”

       

      Clauses (1)
and (2) of the definition of “Senior Indebtedness”
are hereby amended and restated as follows:

       

      “(1) all
Indebtedness of the Issuer or any Guarantor outstanding under the 9.75% Notes
and related guarantees, the EFIH Notes and related guarantees or the Notes and
related Guarantees (including interest accruing on or after the filing of any
petition in bankruptcy or similar proceeding or for reorganization of the Issuer
or any Guarantor (at the rate provided for in the documentation with respect
thereto, regardless of whether or not a claim for post-filing interest is
allowed in such proceedings)), and any and all other fees, expense reimbursement
obligations, indemnification amounts, penalties, and other amounts (whether
existing on the Issue Date or thereafter created or incurred) and all
obligations of the Issuer or any Guarantor to reimburse any bank or other Person
in respect of amounts paid under letters of credit, acceptances or other similar
instruments;

       

      (2) all
Hedging Obligations of the Issuer or any Guarantor (and guarantees thereof)
owing to a lender or any Affiliate of such lender (or any Person that was a
lender or an Affiliate of such Lender at the time the applicable agreement
giving rise to such Hedging Obligation was entered into); provided that such
Hedging Obligations are permitted to be incurred under the terms of this
Indenture”.

       

      Clauses
(f) and (g) in the proviso to the definition of “Senior Indebtedness”
are hereby deleted in their entirety.

       

      (d) Section 1.01
of the Base Indenture is hereby amended by deleting the  definitions
of “Collateral Posting Facility,” “Expenses Relating to a Unit Outage,” “Shell
Wind,” “TCEH Transfer” and “Unit” in their entirety.

       

      ARTICLE
2                      

       

      AMENDMENTS OF ARTICLE 4

       

      Section
2.01 Limitation on Restricted
Payments

       

       
 

       

      (a) Clause
(2) of Section 4.07(a) of the Base Indenture is hereby amended and restated
in its entirety as follows:

       

      “immediately
after giving effect to such transaction on a pro forma basis, the
Restricted Payment Coverage Ratio for the most recently ended four fiscal
quarters for which internal financial statements are available immediately
preceding the date of such Restricted Payment would have been at least 2.00 to
1.00; and”.

       

      (b) Clause
(3) of Section 4.07(a) of the Base Indenture is hereby amended and restated
in its entirety as follows:

       

      “such
Restricted Payment, together with the aggregate amount of all other Restricted
Payments made by the Issuer and its Restricted Subsidiaries after the Closing
Date (including Restricted Payments permitted by clauses (1), (2) (with
respect to the payment of dividends on Refunding Capital Stock (as defined
below) pursuant to clause (b) thereof only), (6)(c), (9) and (14) of
Section 4.07(b) hereof, but excluding all other Restricted Payments
permitted by Section 4.07(b) hereof), is less than the sum of (without
duplication):”.

       

      (c) Clause
(3)(a) of Section 4.07(a) of the Base Indenture is hereby amended and
restated in its entirety as follows:

       

      “50% of
the Consolidated Net Income of the Issuer for the period (taken as one
accounting period) beginning October 11, 2007, to the end of the Issuer’s
most recently ended fiscal quarter for which internal financial statements are
available at the time of such Restricted Payment, or, in the case such
Consolidated Net Income for such period is a deficit, minus 100% of such
deficit; plus”.

       

      (d) Section 4.07(b)(11)
of the Base Indenture is hereby amended by deleting the phrase “2.0% of Total
Assets at the time made” and substituting for such phrase the following
clause:  “$100.0 million”.

       

      Section
2.02 Dividend and Other Payment
Restrictions Affecting Restricted Subsidiaries.

       

      (a) Section 4.08(b)(1)
of the Base Indenture is hereby amended and restated in its entirety as
follows:

       

      “contractual
encumbrances or restrictions in effect on the Issue Date, including pursuant to
the Existing Notes and related documentation”.

       

      (b) Section 4.08(b)(9)(B)
of the Base Indenture is hereby amended and restated in its entirety as
follows:

       

      “other
Indebtedness, Disqualified Stock or Preferred Stock permitted to be incurred
subsequent to the Issue Date pursuant to the provisions of Section 4.09
hereof and either (i) the provisions relating to such encumbrance or
restriction contained such Indebtedness are no less favorable to the Issuer,
taken as a whole, as determined by the Issuer in good faith, than the provisions
contained in the EFIH Indenture, as in effect on the Issue Date or (ii) any
such encumbrance or restriction does not prohibit (except upon a default
thereunder) the payment of dividends or loans in an amount sufficient, as
determined by the Issuer in good faith, to make scheduled payments of cash
interest of the Notes when due”.

       

      Section
2.03 Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred
Stock

       

      .

       

      (a) Section 4.09(a)
of the Base Indenture is hereby amended and restated in its entirety as
follows:

       

      “The
Issuer shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, create, incur, issue, assume, guarantee or otherwise
become directly or indirectly liable, contingently or otherwise (collectively,
“incur” and,
collectively, an “incurrence”) with
respect to any Indebtedness (including Acquired Indebtedness), and the Issuer
shall not issue any shares of Disqualified Stock and shall not permit any
Restricted Subsidiary to issue any shares of Disqualified Stock or Preferred
Stock; provided, however, that the
Issuer may incur Indebtedness (including Acquired Indebtedness) or issue shares
of Disqualified Stock, and any of its Restricted Subsidiaries may incur
Indebtedness (including Acquired Indebtedness), issue shares of Disqualified
Stock and issue shares of Preferred Stock, if the Fixed Charge Coverage Ratio on
a consolidated basis for the Issuer and its Restricted Subsidiaries’ most
recently ended four fiscal quarters for which internal financial statements are
available immediately preceding the date on which such additional Indebtedness
is incurred or such Disqualified Stock or Preferred Stock is issued would have
been at least 2.00 to 1.00, determined on a pro forma basis
(including a pro forma application of
the net proceeds therefrom), as if the additional Indebtedness had been
incurred, or the Disqualified Stock or Preferred Stock had been issued, as the
case may be, and the application of proceeds therefrom had occurred at the
beginning of such four-quarter period.”

       

      (b) Section 4.09(b)(1)
of the Base Indenture is hereby amended and restated in its entirety as
follows:

       

      “the
incurrence of Indebtedness under Credit Facilities by the Issuer or any of its
Restricted Subsidiaries and the issuance and creation of letters of credit and
bankers’ acceptances thereunder (with letters of credit and bankers’ acceptances
being deemed to have a principal amount equal to the face amount thereof), up to
an aggregate principal amount of $750.0 million outstanding at any one
time”.

       

      (c) Section 4.09(b)(7)
of the Base Indenture is hereby amended to delete the parenthetical in the first
proviso.

       

      (d) Section 4.09(b)(8)
of the Base Indenture is hereby amended to delete the parenthetical in the first
proviso.

       

      (e) Section 4.09(b)(10)
of the Base Indenture is hereby amended and restated in its entirety as
follows:

       

      “Hedging
Obligations; provided that such
Hedging Obligations are not entered into for speculative purposes (as determined
by the Issuer in its reasonable discretion acting in good faith)”.

       

      (f) Section 4.09(b)(12)
of the Base Indenture is hereby amended by deleting the reference to the amount
of “$1,750.0 million” and substituting for such amount the amount of “$250.0
million”.

       

      (g) Section 4.09(b)(14)
of the Base Indenture is hereby amended and restated in its entirety as
follows:

       

      “Indebtedness,
Disqualified Stock or Preferred Stock of (x) the Issuer or a Restricted
Subsidiary incurred to finance an acquisition or (y) Persons that are
acquired by the Issuer or any Restricted Subsidiary or merged into the Issuer or
a Restricted Subsidiary in accordance with the terms of this Indenture; provided that after
giving effect to such acquisition or merger, either (a) the Issuer would be
permitted to incur at least $1.00 of additional Indebtedness pursuant to the
Fixed Charge Coverage Ratio test set forth in Section 4.09(a) hereof or
(b) such Fixed Charge Coverage Ratio of the Issuer and its Restricted
Subsidiaries is greater than immediately prior to such acquisition or
merger”.

       

      (h) Section 4.09(c)(2)
of the Base Indenture is hereby amended by deleting the proviso
thereto.

       

      Section
2.04 Asset
Sales

       

      .  Section
4.10(b) of the Base Indenture is hereby amended by deleting the first proviso
thereto.

       

      Section
2.05 Restrictions on TCEH
Transfers

       

      .  Section 4.17
of the Base Indenture is hereby deleted in its entirety.

       

      ARTICLE
3                      

       

      AMENDMENT OF
ARTICLE 5

       

      Section
3.01 Merger, Consolidation, or
Sale of All or Substantially All Assets

       

      .  Section 5.01(a)
of the Base Indenture is hereby amended by amending and restating the proviso
thereto in its entirety as follows:

       

      “provided, that for
the purposes of this Section 5.01 only, a transaction meeting the
requirements of the proviso to clause (3) under the definition of “Change
of Control” shall not be deemed to be a sale, assignment, transfer, conveyance
or other disposition of all or substantially all of the properties or assets of
the Issuer and its Subsidiaries.  For the avoidance of doubt, the
Issuer or any of its Restricted Subsidiaries may consummate a transaction
meeting the requirements of the proviso to clause (3) under the definition
of “Change of Control” without complying with this Section 5.01, and the
determination in the preceding proviso shall not affect the determination of
what constitutes all or substantially all the assets of the Issuer and its
Subsidiaries under any other agreement to which the Issuer is a
party.”

       

      ARTICLE
4                      

       

      AMENDMENT OF ARTICLE
9

       

      Section
4.01 Without Consent of Holders
of Notes.  Section 9.01(15) of the Base Indenture is hereby
amended and restated in its entirety as follows:

       

      “amend
this Indenture in the manner set forth in the Permitted Transfer Supplemental
Indenture to be entered into in connection with the consummation of a Permitted
Asset Transfer in the manner set forth in Section 4.16 hereof; or”.

       

      ARTICLE
5                      

       

      MISCELLANEOUS
PROVISIONS

       

      Section
5.01 Ratification of Base
Indenture

       

      . Except as expressly
modified or amended hereby, the Base Indenture continues in full force and
effect and is in all respects confirmed, ratified and preserved and the
provisions thereof shall be applicable to the Notes and this Supplemental
Indenture.

       

      Section
5.02 Provisions Binding on
Successors

       

      . All agreements of the
Issuer in this Supplemental Indenture shall bind its successors.  All
agreements of the Trustee in this Supplemental Indenture shall bind its
successors.  All agreements of each Guarantor in this Supplemental
Indenture shall bind its successors, except as otherwise provided in
Section 11.06 to the Base Indenture.

       

      Section
5.03 Governing
Law

       

      .  THIS SUPPLEMENTAL
INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK.

       

      Section
5.04 Benefits of
Indenture

       

      .  Nothing
in this Supplemental Indenture, expressed or implied, shall give to any person,
other than the parties hereto and their successors hereunder, and the Holders,
any benefit or any legal or equitable right, remedy or claim under the Base
Indenture, this Supplemental Indenture or the Notes.

       

      Section
5.05 Headings,
Etc.

       

        The
headings of the Articles and Sections of this Supplemental Indenture have been
inserted for convenience of reference only, are not to be considered a part of
this Supplemental Indenture and shall in no way modify or restrict any of the
terms or provisions hereof.

       

      Section
5.06 Severability.  In
case any provision in this Supplemental Indenture 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
5.07 Counterpart
Originals

       

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

       

      Section
5.08 Trustee

       

      .  The
Trustee makes no representations as to the validity or sufficiency of this
Supplemental Indenture.  The statements and recitals herein are deemed
to be those of the Issuer and not of the Trustee.

       

      Section
5.09 Further Instruments and
Acts

       

      .  Upon
request of the Trustee, the Issuer will execute and deliver such further
instruments and do such further acts as may be reasonably necessary or proper to
carry out more effectively the purposes of this Supplemental
Indenture.

       

      Section
5.10 Waiver of Jury
Trial

       

      .  EACH
OF THE ISSUER, THE GUARANTORS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY
IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL
INDENTURE OR THE TRANSACTIONS CONTEMPLATED HEREBY.

       

      Section
5.11 Force
Majeure

       

      . In no event shall the
Trustee be responsible or liable for any failure or delay in the performance of
its obligations under this Supplemental Indenture arising out of or caused by,
directly or indirectly, forces beyond its reasonable control, including without
limitation strikes, work stoppages, accidents, acts of war or terrorism, civil
or military disturbances, nuclear or natural catastrophes or acts of God, and
interruptions, loss or malfunctions of utilities, communications or computer
(software or hardware) services.

       

      

      
        
          
            F-

          

           

        

        
           

          
            

          

        

        
           

        

      

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

              
	 
      	 
      
	 
      	
                ENERGY
      FUTURE HOLDINGS CORP.

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                By:                                                                            

              
	 
      	
                Name:

              
	 
      	
                Title:

              
	 
      	 
      
	 
      	 
      

      

      

      

      

      
        	 
      	
                ENERGY
      FUTURE COMPETITIVE HOLDINGS COMPANY

                 

              
	 
      	
                ENERGY
      FUTURE INTERMEDIATE HOLDING COMPANY LLC

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                By:                                                                            

              
	 
      	
                Name:

              
	 
      	
                Title:

              
	 
      	 
      
	 
      	 
      

      

      

      

      
        
          
            Error!
Unknown document property name.

          

           

        

        
           

          
            

          

        

        
           

        

      

      
        	 
      	
                THE
      BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                By:                                                                            

              
	 
      	
                Name:

              
	 
      	
                Title:

              

      

      

      

      
        
          
            Error!
Unknown document property name.

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