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Employment Agreement Addendum    
  

This
Addendum to William J. Hannigan's Employment Agreement is entered into effective as of July 17, 2001, by and between Sabre Inc., a Delaware corporation ("Sabre"), and William J.
Hannigan ("Employee"). 

Sabre
and Employee hereby agree that the vesting schedule of the restricted stock awarded to Employee on December 13, 1999 under the Employee's Employment Agreement is hereby modified as
follows: 

The
annual dates for the lapse of restrictions (vesting) on the remaining shares of restricted stock of Sabre Holdings Corporation that were granted to Employee on December 13, 1999 will be
delayed so that the date for the lapse of restrictions on any such tranche of shares will instead occur on the 15th day of January immediately after the originally scheduled date for the
lapse of restrictions on such tranche. 

IN
WITNESS WHEREOF, Sabre and Employee have executed and delivered this Agreement as of the date written below. 

Date
signed: July 17, 2001 

	 	 	Sabre Inc.
	

/s/ William J. Hannigan	
 	

By: /s/ Michael E. Haefner
	
 William J. Hannigan	 	
 Name: Michael E. Haefner

Title: Senior Vice President, Human Resources

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AMENDMENT NO. 1    
  

        THIS AMENDMENT NO. 1 (this "Amendment"), dated as of October 4, 2000, to the Credit Agreement referenced
below, is by and among SABRE INC., a Delaware corporation (the "Borrower"), the Lenders identified on the signature pages hereto, and BANK OF
AMERICA, N.A., as Administrative Agent. Capitalized terms used but not otherwise defined herein shall have the meanings provided in the Credit Agreement. 

W
I T N E S S E T H 

        WHEREAS,
a $300 million revolving credit facility has been established in favor of the Borrower pursuant to the terms of that Credit Agreement dated as of February 4, 2000
(as amended and modified, the "Credit Agreement") among the Borrower, the Lenders identified therein, and Bank of America, N.A., as Administrative
Agent; 

        WHEREAS,
the Borrower has requested certain modifications under the Credit Agreement which require the consent of the Requisite Lenders; and 

        WHEREAS,
the Requisite Lenders have consented to the requested modifications on the terms and conditions set forth herein; 

        NOW,
THEREFORE, IN CONSIDERATION of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as
follows: 

        1.    Section 7.05(b)
of the Credit Agreement is hereby amended and modified to read as follows: 

        (b)  Consolidated Net Worth. Permit Consolidated Net Worth at any time to be less than the sum of $553,602,400,  plus on a cumulative basis as of the end of each fiscal
quarter of Parent and its Consolidated Subsidiaries, commencing with the fiscal quarter ending
September 30, 2000, an amount equal to fifty percent (50%) of Consolidated Net Income (to the extent positive) for the fiscal quarter then ended,  plus fifty percent (50%) of the net proceeds from
Equity Issuances occurring after June 30,
2000, minus amounts used to repurchase or redeem capital stock of Parent during the fiscal quarter then ended. 

        2.    This
Amendment shall become effective immediately upon receipt by the Administrative Agent, in form and substance satisfactory to the Administrative Agent, of each of the
following: 

        (a)  duly
executed copies of this Amendment from the Borrower and the Requisite Lenders; and 

        (b)  all
fees, if any, owing in connection with this Amendment, including without limitation, to each consenting Lender (including the Administrative Agent) that executes and
delivers this Amendment by the signing deadline, a nonrefundable amendment fee equal to 0.03% of the aggregate amount of such Lender's Commitment, which fees shall be deemed fully earned and due and
payable on the effective date of this Amendment. 

        3.    The
Borrower hereby represents and warrants in connection herewith that as of the date hereof (after giving effect hereto) (i) the representations and warranties
set forth in the Loan Documents are true and correct in all material respects (except those which expressly relate to an earlier date), and (ii) after the effective date of this Amendment, no
Default or Event of Default exists under the Credit Agreement. 

        4.    Except
as expressly amended or modified hereby, all of the terms and provisions of the Credit Agreement and the other Loan Documents remain in full force and effect. 

        5.    The
Borrower agrees to pay all reasonable costs and expenses in connection with the preparation, execution and delivery of this Amendment, including the reasonable fees
and expenses of the Administrative Agent's legal counsel. 

 

        6.    This
Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original. It shall not be necessary in
making proof of this Amendment to produce or account for more than one such counterpart. 

        7.    This
Amendment shall be deemed to be a contract under, and shall for all purposes be construed in accordance with, the laws of the State of New York. 

[remainder
of page intentionally left blank] 

2

 

        IN
WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Amendment to be duly executed and delivered as of the date first above written. 

	BORROWER:	 	SABRE INC.,

a Delaware corporation
	

 	
 	

By: /s/
 Name:

Title:
	

LENDERS:	
 	

BANK OF AMERICA, N.A.,

as Administrative Agent, a Lender and Issuing Lender
	

 	
 	

By: /s/
 Name:

Title:
	

 	
 	

BANK ONE, TEXAS, N.A.
	

 	
 	

By: /s/
 Name:

Title:
	

 	
 	

STATE BANK OF INDIA
	

 	
 	

By: /s/
 Name:

Title:
	

 	
 	

SUNTRUST BANK
	

 	
 	

By: /s/
 Name:

Title:

3

 

	

 	
 	

THE TOKAI BANK LTD., NEW YORK BRANCH
	

 	
 	

By: /s/
 Name:

Title:
	

 	
 	

CITIBANK, N.A.
	

 	
 	

By: /s/
 Name:

Title:
	

 	
 	

FIRST UNION NATIONAL BANK
	

 	
 	

By: /s/
 Name:

Title:
	

 	
 	

THE SANWA BANK, LIMITED
	

 	
 	

By: /s/
 Name:

Title:
	

 	
 	

THE NORINCHUKIN BANK, NEW YORK BRANCH
	

 	
 	

By: /s/
 Name:

Title:

4

 

	

 	
 	

BANCA NAZIONALE DEL LAVORO SPA
	

 	
 	

By: /s/
 Name:

Title:
	

 	
 	

THE SUMITOMO BANK, LIMITED
	

 	
 	

By: /s/
 Name:

Title:
	

 	
 	

WELLS FARGO BANK (TEXAS), NATIONAL ASSOCIATION
	

 	
 	

By: /s/
 Name:

Title:

5

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AMENDMENT NO. 1EXHIBIT (4)(b)

                    CENTRAL HUDSON GAS & ELECTRIC CORPORATION

                              OFFICERS' CERTIFICATE

              We the  undersigned  [NAME],  [TITLE],  and  [NAME],  [TITLE],  of
CENTRAL HUDSON GAS & ELECTRIC  CORPORATION (the  "Company"),  in accordance with
Sections  201  and  301 of  the  Indenture,  dated  as of  April  1,  1992  (the
"Indenture"),  between  the  Company and U.S.  Bank Trust  National  Association
(formerly known as First Trust of New York, National Association),  as successor
trustee  to  Morgan  Guaranty  Trust  Company  of  New  York,  as  Trustee  (the
"Trustee"),  and pursuant to the Board  Resolutions  (this and other capitalized
terms used  herein  and not  otherwise  defined  herein  having  the  respective
meanings set forth in the Indenture) adopted at a meeting held by consent of the
Board of Directors of the Company on February 22, 2002, do hereby  establish the
forms of the  Securities of a series of Securities  and the terms and provisions
of such Securities (the lettered  clauses set forth below  corresponding  to the
lettered subsections of Section 301 of the Indenture) as follows:

              (a)    the  title  of the  Securities  of  such  series  shall  be
                     "Medium-Term Notes, Series __" (the "Notes");

              (b)    the  aggregate  principal  amount  of  Notes  which  may be
                     authenticated  and delivered  under the Indenture  shall be
                     limited to $____________, except as contemplated in Section
                     301(b) of the Indenture;

              (c)    interest  on the Notes  shall be  payable  to the Person or
                     Persons  in whose  names the Notes  are  registered  at the
                     close  of  business  on the  Regular  Record  Date for such
                     interest,  except as  otherwise  expressly  provided in the
                     form of Note attached hereto;

              (d)    the date or dates on which the principal of the Notes shall
                     be payable  shall be  determined at the time of sale of the
                     Notes,  or any Tranche  thereof,  by the proper officers of
                     the  Company  and  communicated  to the  Trustee by Company
                     Order, or by the proper officers of the Company pursuant to
                     the   Administrative    Procedures   (the   "Administrative
                     Procedures")  attached  as Exhibit  __ to the  Distribution
                     Agreement,  dated  ___________,  by and between the Company
                     and______________,  ________________ and  ________________;
                     provided,  however,  that in no event  shall a Note  have a
                     term less than one year or more than 30 years;

<PAGE>

              (e)    the Notes, or any Tranche thereof, shall bear interest at a
                     fixed  rate as  determined  by the proper  officers  of the
                     Company as follows: there shall be determined by the proper
                     officers of the Company and  communicated to the Trustee by
                     Company  Order,  or by the proper  officers  of the Company
                     pursuant to the Administrative  Procedures,  at the time of
                     sale of the Notes or any Tranche thereof, the interest rate
                     or rates (including the interest rate on overdue principal,
                     premium or interest,  if any)  applicable to such Notes, or
                     any Tranche thereof; interest shall accrue on any Note from
                     the  Original  Issue  Date  specified  in such  Note or, if
                     later, the most recent date to which interest has been paid
                     or duly  provided  for; the Interest  Payment Dates for the
                     Notes shall be __________ and __________,  and at Maturity,
                     and the Regular  Record Dates with respect to such Interest
                     Payment  Dates  shall  be   ___________   and   __________,
                     respectively (whether or not a Business Day), provided that
                     interest payable at Maturity shall be payable to the Person
                     to whom the principal shall be paid;

              (f)    the office of U.S. Bank Trust  National  Association in New
                     York, New York,  shall be the place where (1) the principal
                     of and premium, if any, and interest,  if any, on the Notes
                     shall be payable,  (2) the Notes,  or any Tranche  thereof,
                     may be surrendered for  registration  of transfer,  (3) the
                     Notes,  or any  Tranche  thereof,  may be  surrendered  for
                     exchange and (4) notices and demands to or upon the Company
                     in respect of the Notes,  or any Tranche  thereof,  and the
                     Indenture  may  be  served;  provided,  however,  that  the
                     Company  reserves  the  right  to  change,  by one or  more
                     Officers'  Certificates   supplemental  to  this  Officers'
                     Certificate,  such place or add one or more additional such
                     places;

              (g)    the Notes, or any Tranche  thereof,  shall be redeemable in
                     whole or in part at the  option of the  Company  during the
                     period or  periods,  at the price or  prices,  and upon the
                     terms and conditions  determined at the time of sale of the
                     Notes or any Tranche  thereof by the proper officers of the
                     Company and  communicated  to the Trustee by Company Order,
                     or  determined  by  the  proper  officers  of  the  Company
                     pursuant to the Administrative Procedures;

              (h)    the  obligation,  if  any,  of the  Company  to  redeem  or
                     purchase the Notes or any Tranche  thereof  pursuant to any
                     sinking fund or analogous  provisions or at the option of a
                     Holder thereof

                                       2
<PAGE>

                     and the period or periods within which, the price or prices
                     at which,  and the terms and  conditions  upon which,  such
                     Notes or Tranche thereof shall be redeemed or purchased, in
                     whole  or in part,  pursuant  to such  obligation  shall be
                     determined  at the  time of sale of the  Notes  or  Tranche
                     thereof  by  the  proper   officers   of  the  Company  and
                     communicated to the Trustee by Company Order, or determined
                     by the  proper  officers  of the  Company  pursuant  to the
                     Administrative Procedures;

              (i)    the  Notes,  or any  Tranche  thereof,  shall be  issued in
                     denominations  of  $1,000 or any  amount in excess  thereof
                     that is an  integral  multiple  of $1,000 or in such  other
                     denominations as shall be determined at the time of sale of
                     the Notes or Tranche  thereof by the proper officers of the
                     Company and  communicated  to the Trustee by Company Order,
                     or  determined  by  the  proper  officers  of  the  Company
                     pursuant to the Administrative Procedures;

              (j)    not applicable;

              (k)    not applicable;

              (l)    not applicable;

              (m)    not applicable;

              (n)    not applicable;

              (o)    the  Company  reserves  the  right  to add,  by one or more
                     Officers'  Certificates   supplemental  to  this  Officers'
                     Certificate,  (i)  any  covenants  of the  Company  for the
                     benefit  of the  Holders  of  the  Notes,  or  any  Tranche
                     thereof,  in  addition to those set forth in Article Six of
                     the  Indenture  and/or  (ii)  any  Events  of  Default,  in
                     addition  to  those   specified   in  Section  801  of  the
                     Indenture,  with respect to all or any series of Securities
                     Outstanding;

              (p)    not applicable;

              (q)    not applicable;

              (r)    no service  charge  shall be made for the  registration  of
                     transfer or exchange of Securities; provided, however, that
                     the  Company  may require  payment of a sum  sufficient  to
                     cover

                                       3
<PAGE>

                     any tax or other governmental  charge payable in connection
                     with the exchange or transfer;

              (s)    the  provisions  of Section 113 of the  Indenture  shall be
                     applicable  to  each  Note,  without  exception;  provided,
                     however,  that if the  term  "Business  Day"  as  used  and
                     defined in any Note has a meaning  that is  different  from
                     the  term  "Business  Day"  as  used  and  defined  in  the
                     Indenture,  the  definition of "Business Day" as defined in
                     such Note shall control the application of said Section 113
                     to such Note;

              (t)    (1) the proper  officers of the Company may  execute,  with
                     the  Trustee  (acting  as both the  Issuing  Agent  and the
                     Paying  Agent),   a  Letter  of   Representations   to  The
                     Depository  Trust Company in such form as such officers and
                     the  depositary  shall  approve,  and  any  supplements  or
                     amendments  thereto,  necessary  or  desirable  to make the
                     Notes  eligible for deposit at such  depositary;  provided,
                     however,  that the Company  reserves the right to terminate
                     any such Letter of Representations by one or more Officers'
                     Certificates  supplemental  to this Officers'  Certificate;
                     and provided,  further, that the Company reserves the right
                     to enter into similar  agreements with any other depositary
                     with    respect    to   the    Notes   by   one   or   more
                     Officers'Certificates   supplemental   to  this   Officers'
                     Certificate and (2) the Notes shall be substantially in the
                     form  thereof  attached  hereto  and shall  have such other
                     terms and provisions as are set forth in such form.

              Each  of  the  undersigned  has  read  all of  the  covenants  and
conditions  contained in the  Indenture  and the  definitions  in the  Indenture
relating thereto compliance with respect to which this certificate is made;

              The statements  contained in this  certificate  are based upon the
familiarity of the undersigned  with the Indenture,  the documents  accompanying
this  certificate,  and upon  discussions by the  undersigned  with officers and
employees of the Company familiar with the matters set forth herein;

              In the  opinion  of  each of the  undersigned,  he has  made  such
examination  or  investigation  as is  necessary  to enable  him to  express  an
informed opinion whether or not such covenants and conditions have been complied
with; and

              In the opinion of each of the  undersigned,  such  conditions  and
covenants have been complied with.

                                       4
<PAGE>

              IN WITNESS WHEREOF,  we have hereunto signed our names this ______
day of __________, 2002.

                                                 ------------------------------
                                                    [Title]

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

                                                    [Title]

                                       5
<PAGE>

                            [FORM OF FIXED RATE NOTE]

                               [FORMS OF LEGENDS]

                  [UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE
"DEPOSITARY"), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITARY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS
IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), 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.]

                  [UNLESS AND UNTIL THIS SECURITY IS EXCHANGED IN WHOLE OR IN
PART FOR CERTIFICATED SECURITIES REGISTERED IN THE NAMES OF THE VARIOUS
BENEFICIAL HOLDERS HEREOF AS THEN CERTIFIED TO THE COMPANY BY THE DEPOSITARY OR
A SUCCESSOR DEPOSITARY, THIS SECURITY 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.]

                  [THIS SECURITY MAY BE EXCHANGED FOR CERTIFICATED SECURITIES
REGISTERED IN THE NAMES OF THE VARIOUS BENEFICIAL OWNERS HEREOF ONLY IF (A) THE
DEPOSITARY IS AT ANY TIME UNWILLING OR UNABLE TO CONTINUE AS DEPOSITARY AND A
SUCCESSOR DEPOSITARY IS NOT APPOINTED BY THE COMPANY WITHIN 90 DAYS, OR (B) THE
COMPANY ELECTS TO ISSUE CERTIFICATED SECURITIES TO BENEFICIAL OWNERS (AS
CERTIFIED TO THE COMPANY BY THE DEPOSITARY OR A SUCCESSOR DEPOSITARY).]

<PAGE>

                             [FORM OF FACE OF NOTE]

No. FX _____
Cusip No.

                    CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                           MEDIUM-TERM NOTE, SERIES __
                                  (FIXED RATE)

Original Issue Date:                Redeemable:  Yes__ No__

Interest Rate:                      Initial Redemption Date:

Stated Maturity Date:               Redemption Limitation Date:

[Additional Redemption              Initial Redemption Price:
 Prices, if any]
                                    Reduction Percentage:

                                   ----------

                  CENTRAL HUDSON GAS & ELECTRIC CORPORATION, a corporation duly
organized and existing under the laws of the State of New York (herein called
the "Company," which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
_____________, or registered assigns, the principal sum of ______________
Dollars on the Stated Maturity Date specified above, and to pay the registered
owner hereof interest thereon at the Interest Rate per annum specified above,
semi-annually in arrears on ___________ and ___________ in each year and at the
Stated Maturity Date (each an "Interest Payment Date"), commencing with the
Interest Payment Date next succeeding the Original Issue Date specified above,
from the Original Issue Date specified above or, if later, from the most recent
Interest Payment Date to which interest has been paid or duly provided for,
until the principal hereof is paid or duly provided for. The interest so
payable, and paid or duly provided for, on any Interest Payment Date shall, as
provided in such Indenture, be paid to the Person in whose name this Security
(or one or more Predecessor Securities) is registered at the close of business
(whether or not a Business Day (as hereinafter defined)) on the ___________ or
___________ (each a "Regular Record Date"), as the case may be, next preceding
such Interest Payment Date. Notwithstanding the foregoing, (a) if the date of
this Security (unless the date of this Security is the same date as the Original
Issue Date) is after a Regular Record Date and before the corresponding Interest
Payment Date, this Security shall bear interest from such Interest Payment Date,
and the Person in whose name this Security is registered at the close of
business on any Regular Record Date with respect to any Interest

                                      -2-
<PAGE>

Payment Date shall be entitled to receive the interest payable on such Interest
Payment Date, notwithstanding the cancellation of this Security, upon any
transfer or exchange hereof subsequent to such Regular Record Date and on or
prior to such Interest Payment Date; (b) if the Original Issue Date of this
Security is after a Regular Record Date and before the corresponding Interest
Payment Date, this Security shall bear interest from the Original Issue Date,
but payment of interest shall commence on the second Interest Payment Date
succeeding the Original Issue Date and shall be paid to the registered owner
hereof on the Regular Record Date immediately preceding such second Interest
Payment Date; and (c) interest payable at Maturity shall be paid to the Person
to whom principal shall be paid. Except as otherwise provided in the Indenture,
any such interest not so paid or duly provided for shall forthwith cease to be
payable to the Holder on such Regular Record Date and may either be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest to be fixed by the Trustee, notice whereof shall be
given to Holders of Securities of this series not less than 10 days prior to
such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be required
by such exchange, all as more fully provided in said Indenture.

                  Payment of the principal of and premium, if any, on this
Security and interest hereon at Maturity shall be made upon presentation hereof
at the office of U.S. Bank Trust National Association, in New York, New York, or
at such other office or agency as may be designated for such purpose by the
Company from time to time. Payment of interest, if any, on this Security (other
than interest at Maturity) shall, at the option of the Company, be made by check
mailed on or prior to such Interest Payment Date to the address of the Person
entitled thereto as such address shall appear in the Security Register or by
wire transfer to an account maintained by such Person with a bank in the United
States (so long as the Trustee has received proper wire transfer instructions in
writing by the Record Date next preceding such Interest Payment Date, which
instructions shall remain in full force until changed prior to a Record Date).
Payment of the principal of and premium, if any, and interest, if any, on this
Security, as aforesaid, shall be made in such coin or currency of the United
States of America as at the time of payment shall be legal tender for the
payment of public and private debts.

                                      -3-

<PAGE>

                            [FORM OF REVERSE OF NOTE
                    CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                          MEDIUM-TERM NOTES, SERIES __
                                  (continued)]

                  This Security is one of a duly authorized issue of securities
of the Company (herein called the "Securities"), issued and issuable in one or
more series under an Indenture dated as of April 1, 1992 (such Indenture as
originally executed and delivered and as thereafter supplemented or amended,
together with any constituent instruments establishing the terms of particular
Securities, being herein called the "Indenture"), between the Company and U.S.
Bank Trust National Association (formerly known as First Trust of New York,
National Association) (as successor trustee to Morgan Guaranty Trust Company of
New York), as trustee (herein called the "Trustee," which term includes any
successor trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. The acceptance of
this Security shall be deemed to constitute the consent and agreement by the
Holder hereof to all of the terms and provisions of the Indenture. This Security
is one of the series designated on the face hereof.

                  If any Interest Payment Date, any Redemption Date or the
Stated Maturity Date shall not be a Business Day (as hereinafter defined),
payment of the amounts due on this Security on such date may be made on the next
succeeding Business Day; and, if such payment is made or duly provided for on
such Business Day, no interest shall accrue on such amounts for the period from
and after such Interest Payment Date, Redemption Date or Stated Maturity Date,
as the case may be, to such Business Day.

                  If, as specified on the face hereof, this Security is
redeemable, this Security is subject to redemption on or after the Initial
Redemption Date specified on the face hereof, as a whole, at any time, or in
part, from time to time, at the election of the Company, at the applicable
redemption price (as described below) plus accrued interest to the date fixed
for redemption. Unless otherwise specified on the face hereof, such applicable
redemption price shall be the Initial Redemption Price specified on the face
hereof for the twelve-month period commencing on the Initial Redemption Date and
shall decline for the twelve-month period commencing on each anniversary of the
Initial Redemption Date by a percentage of principal amount equal to the
Reduction Percentage specified on the face hereof until such redemption price is
100% of the principal amount of this Security to be redeemed and, at all times
thereafter, such redemption price shall be 100% of such principal amount.

                  Notwithstanding the foregoing, the Company may not, prior to
the Redemption Limitation Date, if any, specified on the face hereof, redeem
this Security as contemplated above as a part of, or in anticipation of, any
refunding operation (other than pursuant to any sinking fund or other mandatory
redemption, or redemption at the option of the Holder) by the application,
directly or indirectly, of moneys borrowed having an effective interest cost to
the

                                      -4-
<PAGE>

Company (calculated in accordance with generally accepted financial practice)
less than the effective interest cost to the Company (similarly calculated) of
this Security.

                  Notice of redemption shall be given by mail to Holders of
Securities, not less than 30 days nor more than 60 days prior to the date fixed
for redemption, all as provided in the Indenture. As provided in the Indenture,
notice of redemption at the election of the Company as aforesaid may state that
such redemption shall be conditional upon the receipt by the Trustee of money
sufficient to pay the principal of and premium, if any, and interest, if any, on
this Security on or prior to the date fixed for such redemption; a notice of
redemption so conditioned shall be of no force or effect if such money is not so
received and, in such event, the Company shall not be required to redeem this
Security.

                  In the event of redemption of this Security in part only, a
new Security or Securities of this series, of like tenor, for the unredeemed
portion hereof will be issued in the name of the Holder hereof upon the
cancellation hereof.

                  If an Event of Default with respect to Securities of this
series shall occur and be continuing, the principal of this Security may be
declared due and payable in the manner and with the effect provided in the
Indenture.

                  The Indenture permits, with certain exceptions as therein
provided, the Trustee to enter into one or more supplemental indentures for the
purpose of adding any provisions to, or changing in any manner or eliminating
any of the provisions of, the Indenture with the consent of the Holders of not
less than a majority in aggregate principal amount of the Securities of all
series then Outstanding under the Indenture, considered as one class; provided,
however, that if there shall be Securities of more than one series Outstanding
under the Indenture and if a proposed supplemental indenture shall directly
affect the rights of the Holders of Securities of one or more, but less than
all, of such series, then the consent only of the Holders of a majority in
aggregate principal amount of the Outstanding Securities of all series so
directly affected, considered as one class, shall be required; and provided,
further, that if the Securities of any series shall have been issued in more
than one Tranche and if the proposed supplemental indenture shall directly
affect the rights of the Holders of Securities of one or more, but less than
all, of such Tranches, then the consent only of the Holders of a majority in
aggregate principal amount of the Outstanding Securities of all Tranches so
directly affected, considered as one class, shall be required. The Indenture
also contains provisions permitting the Holders of specified percentages in
principal amount of the Securities then Outstanding, on behalf of the Holders of
all Securities, to waive compliance by the Company with certain provisions of
the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this
Security and of any Security issued upon the registration of transfer hereof or
in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security.

                  No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and

                                      -5-
<PAGE>

unconditional, to pay the principal of and premium, if any, and interest, if
any, on this Security at the times, place and rate, in the coin or currency, and
in the manner, herein prescribed.

                  As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registerable in
the Security Register, upon surrender of this Security for registration of
transfer at the office of U.S. Bank Trust National Association, in New York, New
York or such other office or agency as may be designated by the Company from
time to time, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Security Registrar duly
executed by, the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Securities of this series of authorized denominations
and of like tenor and aggregate principal amount, will be issued to the
designated transferee or transferees.

                  The Securities of this series are issuable only as registered
Securities, without coupons, in denominations of $1,000 and any integral
multiple thereof. As provided in the Indenture and subject to certain
limitations therein set forth, Securities of this series are exchangeable for a
like aggregate principal amount of Securities of this series, of any authorized
denominations, as requested by the Holder surrendering the same, and of like
tenor upon surrender of the Security or Securities to be exchanged at the office
of U.S. Bank Trust National Association, in New York, New York or such other
office or agency as may be designated by the Company from time to time.

                  The Company shall not be required to (a) register the transfer
of or exchange Securities of this series during a period of 15 days immediately
preceding the date notice is given identifying the serial numbers of the
Securities of this series called for redemption or (b) to register the transfer
of or exchange any Security so selected for redemption in whole or in part,
except the unredeemed portion of any Security being redeemed in part.

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

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

                  The Indenture, the Securities and the rights and obligations
of the Trustee shall be governed by and construed in accordance with the laws of
the State of New York.

                  As used herein, "Business Day" means any day, other than a
Saturday or Sunday, which is not a day on which banking institutions or trust
companies in the State of New York or the city in which is located any office or
agency maintained for the payment of principal of or

                                      -6-
<PAGE>

premium, if any, or interest on this Security, are authorized or required by
law, regulation or executive order to remain closed. All other terms used in
this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

                  As provided in the Indenture, no recourse shall be had for the
payment of the principal of or premium, if any, or interest, if any, on any
Securities, or any part thereof, or for any claim based thereon or otherwise in
respect thereof, or of the indebtedness represented thereby, or upon any
obligation, covenant or agreement under the Indenture, against, and no personal
liability whatsoever shall attach to, or be incurred by, any incorporator,
stockholder, officer or director, as such, past, present or future of the
Company or of any predecessor or successor corporation (either directly or
through the Company or a predecessor or successor corporation), whether by
virtue of any constitutional provision, statue or rule of law, or by the
enforcement of any assessment or penalty or otherwise; it being expressly agreed
and understood that the Indenture and all the Securities are solely corporate
obligations and that any such personal liability is hereby expressly waived and
released as a condition of, and as part of the consideration for, the execution
of the Indenture and the issuance of the Securities.

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

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

                          CENTRAL HUDSON GAS & ELECTRIC
                                   CORPORATION

                                    By ___________________________________
                                                 [Title]

Attest:

By ________________________
    [Assistant] Secretary

                                      -7-

<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

                  This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.

Dated:______________________

                                    U.S. BANK TRUST NATIONAL ASSOCIATION,
                                      as Trustee

                                    By: ___________________________________
                                               Authorized Signatory

                                      -8-
<PAGE>

   FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers
unto
     -------------------------------------
        [please insert social security
        or other identifying number of
        assignee]

--------------------------------------------------------------------------------
[please print or typewrite name and address of assignee]

--------------------------------------------------------------------------------
the within Security of CENTRAL HUDSON GAS & ELECTRIC CORPORATION and does hereby
irrevocably constitute and appoint _________________________________________,
Attorney, to transfer said Security on the books of the within-mentioned
Company, with full power of substitution in the premises.

Dated:
      ---------------------------   --------------------------------------------
                                    Notice: The signature to this assignment
                                    must correspond with the name as written
                                    upon the face of the Security in every
                                    particular without alteration or enlargement
                                    or any change whatsoever.

                                      -9-

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