Document:

Exhibit 10(vv)

 

DPL INC.

2006 DEFERRED COMPENSATION PLAN FOR NON-EMPLOYEE DIRECTORS

(AS AMENDED AND RESTATED THROUGH DECEMBER 31,
2007)

 

ARTICLE
I.  INTRODUCTION

 

DPL Inc. adopted the DPL Inc. 2006 Deferred Compensation Plan For
Non-Employee Directors on the terms and conditions hereinafter set forth,
effective as of November 30, 2006. 
This amended and restated version of the Plan is effective December 31,
2007.

 

The purpose of this Plan is to provide
directors of the Company who are not employed by the Company with the
opportunity to defer the receipt of the cash fees which may be earned by such
directors for services as members of the Board (as defined below).

 

ARTICLE
II.  DEFINITIONS

 

For the purposes hereof, the following words
and phrases shall have the meanings set forth below, unless their context
clearly requires a different meaning:

 

Section 2.1            “Account”
means the bookkeeping account maintained by the Company on behalf of each
Participant pursuant to Section 3.3 that is credited with Fees that are
deferred by a Participant.

 

Section 2.2            “Beneficiary”
or “Beneficiaries” means the person or persons, including one or more
trusts, designated by a Participant in accordance with the Plan to receive
payment of the remaining balance of the Participant’s Account in the event of
the death of the Participant prior to receipt of the entire amount credited to
the Participant’s Account.

 

Section 2.3            “Board”
means the Board of Directors of the Company.

 

Section 2.4            “Calendar
Year” means each calendar year commencing on or after January 1, 2007.

 

Section 2.5            “Change
of Control” means the consummation of any Change of Control of the Company,
or its principal subsidiary, The Dayton Power and Light Company (“DP&L”),
of a nature that would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of
1934, as amended (the “Exchange Act”), as determined by the Board in its sole
discretion; provided that, without limitation, such a Change of Control shall
be deemed to have occurred if:

 

 

(a)           any “Person” (as such term is defined
in  Sections 13(d) or 14(d)(2) of
the Exchange Act; hereafter, a “Person”) is on the date hereof or becomes the
beneficial owner, directly or indirectly, of securities of the Company or
DP&L representing (i) 25% or more of the combined voting power of the
then outstanding Voting Stock of the Company or DP&L if the acquisition of
such beneficial ownership is not approved by the Board prior to the acquisition
or (ii) 50% or more of such combined voting power in all other cases;

 

(i)            for purposes of this Section 2.5,
the following acquisitions shall not constitute a Change of Control: (A) any
acquisition of Voting Stock of the Company or DP&L directly from the
Company or DP&L that is approved by a majority of those persons serving as
directors of the Company or DP&L on the date of this Plan (the “Original
Directors”) or their Successors (as defined below), (B) any acquisition of
Voting Stock of the Company or DP&L by the Company or any Subsidiary, and (C) any
acquisition of Voting Stock of the Company or DP&L by the trustee or other
fiduciary holding securities under any employee benefit plan (or related trust)
sponsored or maintained by DPL or any Subsidiary (the term “Successors” shall
mean those directors whose election or nomination for election by shareholders
has been approved by the vote of at least two-thirds of the Original Directors
and previously qualified Successors serving as directors of the Company or
DP&L, as the case may be, at the time of such election or nomination for
election);

 

(ii)           if any Person is or becomes the
beneficial owner of 25% or more of combined voting power of the
then-outstanding Voting Stock of the Company or DP&L as a result of a
transaction described in clause (A) of Section 2.5(a)(i) above
and such Person thereafter becomes the beneficial owner of any additional
shares of Voting Stock of the Company or DP&L representing 1% or more of
the then-outstanding Voting Stock of the Company or DP&L, other than in an
acquisition directly from the Company or DP&L that is approved by a
majority of the Original Directors or their Successors or other than as a
result of a stock dividend, stock split or similar transaction effected by the
Company or DP&L in which all holders of Voting Stock of the Company or
DP&L are treated equally, such subsequent acquisition shall be treated as a
Change of Control;

 

(iii)          a Change of Control will not be deemed
to have occurred if a Person is or becomes the beneficial owner of 25% or more
of the Voting Stock of the Company or DP&L as a result of a reduction in
the number of shares of Voting Stock of the Company or DP&L outstanding
pursuant to a transaction or series of transactions that is approved by a
majority of the Original Directors or their 

 

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Successors unless
and until such Person thereafter becomes the beneficial owner of any additional
shares of Voting Stock of the Company or DP&L representing 1% or more of
the then-outstanding Voting Stock of the Company or DP&L, other than as a
result of a stock dividend, stock split or similar transaction effected by the
Company or DP&L in which all holders of Voting Stock are treated equally;
and

 

(iv)          if at least a majority of the Original
Directors or their Successors determine in good faith that a Person has
acquired beneficial ownership of 25% or more of the Voting Stock of the Company
or DP&L inadvertently, and such Person divests as promptly as practicable
but no later than the date, if any, set by the Original Directors or their
Successors a sufficient number of shares so that such Person beneficially owns
less than 25% of the Voting Stock of the Company or DP&L, then no Change of
Control shall have occurred as a result of such Person’s acquisition; or

 

(b)           the Company or DP&L consummates a
merger or consolidation, or consummates a “combination” or “majority share
acquisition” in which it is the “acquiring corporation” (as such terms are
defined in Ohio Rev. Code § 1701.01 as in effect on December 31, 1990) and
in which shareholders of the Company or DP&L, as the case may be,
immediately prior to entering into such agreement, will beneficially own,
immediately after the effective time of the merger, consolidation, combination
or majority share acquisition, securities of the Company or DP&L or any
surviving or new corporation, as the case may be, having less than 50% of the “voting
power” of DPL or DP&L or any surviving or new corporation, as the case may
be, including “voting power” exercisable on a contingent or deferred basis as
well as immediately exercisable “voting power”, excluding any merger of
DP&L into the Company or of the Company into DP&L;

 

(c)           the Company or DP&L consummates a
sale, lease, exchange or other transfer or disposition of all or substantially
all of its assets to any Person other than to a wholly owned subsidiary or, in
the case of DP&L, to the Company or a wholly owned subsidiary(ies) of the
Company; but not including (i) a mortgage or pledge of assets granted in
connection with a financing or (ii) a spin-off or sale of assets if the
Company continues in existence and its common shares are listed on a national
securities exchange, quoted on the automated quotation system of a national
securities association or traded in the over-the-counter market; or

 

(d)           the Original Directors and/or their
Successors do not constitute a majority of the whole Board or the Board of
Directors of DP&L, as the case may be; or

 

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(e)           approval by the shareholders of the
Company or DP&L of a complete liquidation or dissolution of the Company or
DP&L, as the case may be.

 

Section 2.6            “Code”
means the Internal Revenue Code of 1986, as amended.

 

Section 2.7            “Committee”
means the Compensation Committee of the Board or such other Committee as may be
authorized by the Board to administer the Plan.

 

Section 2.8            “Common
Stock” means the common stock, par value $0.01 per shares, of the Company.

 

Section 2.9            “Company”
means DPL Inc., an Ohio corporation, and any entity that succeeds DPL Inc. by
merger, reorganization or otherwise.

 

Section 2.10         “Controlled
Group” means the Company and any and all other corporations, trades and/or
businesses, the employees of which, together with employees of the Company, are
treated under Section 414 of the Code as if they were employed by a single
employer.  Each corporation or
unincorporated trade or business that is or was a member of the Controlled
Group shall be referred to herein as a “Controlled Group Member”, but only
during such period as it is or was such a member.

 

Section 2.11         “Deferral
Election” means the Election Agreement (or portion thereof) completed by a
Participant and filed with the Company that indicates the amount of his or her
Fees that are or will be deferred under the Plan for a Deferral Period.

 

Section 2.12         “Deferral
Period” means the calendar year that commences after each Election Filing
Date.

 

Section 2.13         “Disability”
means a Participant’s inability to perform the duties required on a full-time
basis for a period of six consecutive months because of physical or mental
illness or other physical or mental disability or incapacity.

 

Section 2.14         “Election
Agreement” means an agreement in the form that the Company may designate
from time to time that is consistent with the terms of the Plan.

 

Section 2.15         “Election
Filing Date” means December 31 of the Calendar Year immediately prior
to the first day of the Calendar Year for which Fees would otherwise be earned.

 

Section 2.16         “Eligible
Director” means a member of the Board who is not an employee of the Company
or any of its affiliates.  Unless
otherwise determined by the Committee, an Eligible Director shall continue as
such until his or her Termination of Service.

 

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Section 2.17         “Fees”
means the cash fees paid to members of the Board for services as a member of
the Board, including, without limitation, annual board retainers, committee
chair retainers, and board meeting fees.

 

Section 2.18         “Hypothetical
Investment Fund or Funds” means any investment fund designated by the
Company pursuant to Section 3.3.

 

Section 2.19         “Key Employee”
means a key employee as defined in Section 409A of the Code and Section 416(i) of
the Code (without regard to paragraph (5) thereof) of the Company (or a
Controlled Group Member).

 

Section 2.20         “Participant”
means any Eligible Director who has at any time made a Deferral Election in
accordance with Section 3.2 and who, in conjunction with his or her
Beneficiary, has not received a complete distribution of the amount credited to
his or her Account.

 

Section 2.21         “Payment
Election” means the Election Agreement (or portion thereof) completed by a
Participant and filed with the Company that indicates the time of commencement
of payment and form of payment of the Participant’s Fees that are or will be
deferred pursuant to a Deferral Election under the Plan.

 

Section 2.22         “Plan”
means this deferred compensation plan, which shall be known as the DPL Inc. 2006
Deferred Compensation Plan For Non-Employee Directors.  The Plan is unfunded and is maintained by the
Company primarily for the purpose of providing deferred compensation for
Eligible Directors of the Company.

 

Section 2.23         “Plan
Administrator” means the Committee.

 

Section 2.24         “Subsidiary”
means a corporation, partnership, joint venture. unincorporated association or
other entity in which the Company has a direct or indirect ownership or other
equity interest.

 

Section 2.25         “Termination
of Service” means a separation from service as defined under Section 409A
of the Code.

 

Section 2.26         “Unforeseeable
Emergency” means an event that results in a severe financial hardship to a
Participant resulting from (a) an illness or accident of the Participant
or his or her spouse, dependent (as defined in Section 152(a) of the
Code), or Beneficiary, (b) loss of the Participant’s property due to
casualty, or (c) other similar extraordinary circumstances arising as a
result of events beyond the control of the Participant.

 

Section 2.27         “Voting
Stock” means securities entitled to vote generally in the election of
directors.

 

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ARTICLE
III.  ELECTION TO DEFER

 

Section 3.1            Eligibility.  An Eligible Director may make an annual
Deferral Election with respect to receipt of all or a specified part of his or
her Fees for any Calendar Year in accordance with Section 3.2.  An Eligible Director who makes a Deferral
Election must also make a Payment Election with respect to the amount deferred
in accordance with Section 3.4.

 

Section 3.2            Deferral
Elections.  All Deferral Elections,
once effective, shall be irrevocable, shall be made on an Election Agreement
filed with the Company, and shall comply with the following requirements:

 

(a)           The Deferral Election on the Election
Agreement shall specify:

 

(i)            the percentage or
the dollar amount of a Participant’s Fees, and

 

(ii)           in accordance with Section 3.3(b),
the investment election with respect to the deemed investment of Fees.

 

(b)           The Deferral
Election shall be made by, and shall be effective as of, the applicable
Election Filing Date.  Notwithstanding
the foregoing, a director who first becomes an Eligible Director during the
course of a Calendar Year, rather than as of the applicable Election Filing
Date, shall make such Deferral Election with respect to Fees within thirty days
following the date the director first becomes an Eligible Director, and such
Deferral Election shall be effective on the date made and shall be effective with
regard to Fees earned during such Calendar Year following the filing of the
Election Agreement with the Company.

 

Section 3.3            Accounts.

 

(a)           Fees
that a Participant elects to defer shall be credited to the Account on the date
the Fees would otherwise have been paid to the Participant.  Credits or charges representing gains,
losses, interest or other earnings allocable to the Account which would be
applicable if such Account had been invested on a tax deferred basis in the
Hypothetical Investment Fund(s) selected by the Participant or the
Participant’s Beneficiary as provided in Section 3.3(b) shall also be
credited to the Account.  The Company
shall also enter on the books of each Participant’s Account debits for any
distributions made from the Account.

 

(b)           The Company shall
designate a Hypothetical Investment Fund or Funds under this Plan, which may,
but need not, include one or more of the investment funds provided under The
Dayton Power and Light Company Employee Savings Plan or offered by the trustee
thereunder (which shall not include Common Stock).  Any such designation shall be in a writing
which may be amended or supplemented from time to time by the Company pursuant
to rules adopted by the Company. 
Each Participant shall elect a Hypothetical Investment Fund (or, if
permitted by rules adopted by the Company, one or more 

 

6

 

Hypothetical
Investment Funds) in which the amount of Fees that a Participant defers under
this Plan shall be deemed invested.  Such
an election may be made in accordance with rules and procedures
established by the Company.  Any
Participant may change his investment election either prospectively or with
respect to amounts previously credited to his Account in accordance with procedures
specified by the Company.  In the absence
of an investment election by a Participant, the company shall select the
Hypothetical Investment Fund(s) which shall be applicable to such
Participant’s Account.

 

Section 3.4            Initial
Payment Elections.  Subject to Sections
3.4(c), 3.5, 3.6, 3.7, and 3.8 of this Plan, all Payment Elections shall be irrevocable,
shall be made on an Election Agreement filed with the Company and shall comply
with the following requirements:

 

(a)           The Payment Election
shall contain the Participant’s elections regarding the time of the
commencement of payment of amounts in his or her Account, to the extent the
Participant does not already have an election regarding the time of the
commencement of payment applicable to his or her Account.  In addition, if the Participant has elected,
pursuant to Section 3.4(a)(i)(B), to commence payment in a specified year,
the Payment Election for the Deferral Period immediately prior to such
specified year shall contain the Participant’s election regarding the time of
the commencement of payment of amounts in his or her Account for that and all
future Deferral Periods.

 

(i)            A Participant may
elect to commence payment (A) upon the date on which he or she incurs a
Termination of Service for any reason, including, without limitation, by reason
of death or Disability, or (B) in a specified year that begins at least
two years after the date on which the Deferral Election becomes effective.

 

(ii)           Payments made in
accordance with the Participant’s election under Section 3.4(a)(i)(A) shall
be paid or commence to be paid within 90 days following the date of the
Termination of Service; provided, however, that the Participant
does not have the right to designate the taxable year of such payments, and
payments made in accordance with the Participant’s election under Section 3.4(a)(i)(B) shall
be paid or commence to be paid on January 31 of the specified year.

 

(iii)          Notwithstanding the
foregoing provisions of this Section 3.4(a), in the event that a Participant
elects to commence payments in a specified year, and prior to the date such
payment is due to be paid or commence to be paid (as described Section 3.4(a)(ii))
he or she incurs a Termination of Service, payment of the Participant’s Account
shall commence, in the form or forms elected pursuant to Section 3.4(b) and/or
(c), on the date of such Termination of Service.

 

7

 

(iv)          Notwithstanding the
foregoing provisions of this Section 3.4(a), if a Participant is a Key
Employee at the time of his or her Termination of Service, then the payment on
account of a Termination of Service shall commence on the first day of the
seventh month after such Termination of Service (or if earlier, on the date of
death).

 

(b)           The Payment Election
shall also contain the Participant’s elections regarding the form of payment of
amounts in his or her Account, to the extent the Participant does not already
have an election regarding the form of payment applicable to his or her
Account.  In addition, if the Participant
has elected, pursuant to Section 3.4(a)(i)(B), to commence payment in a
specified year, the Payment Election for the Deferral Period immediately prior
to such specified year shall contain the Participant’s election regarding form
of payment of amounts in his or her Account for that and all future Deferral
Periods.

 

(i)            The Participant may
elect to receive amounts in his or her Account in one of the following
forms:  (A) a single, lump sum
payment or (B) a number of annual installments over a period of up to five
years.

 

(ii)           In the event that a
Participant’s Account is payable in annual installments, the amount of each
installment shall be equal to the value, as of December 31 of the calendar
year immediately prior to the date of the respective installment payment, of
the Participant’s Account divided by the number of installment payments then
remaining in the installment period;

 

(A)          The portion of the
Account subject to such installment payments that remains unpaid from time to
time shall continue to be credited with gains, losses, interest and other
earnings.

 

(B)           The final
installment payment shall include an adjustment for gains, losses, interest and
other earnings during the period between the beginning of the calendar year in
which the final installment payment is made and the date of such final payment.

 

(c)           The Payment Election
shall be made by, and shall be effective as of, the applicable Election Filing
Date.  Except as provided in the
following sentence, a Participant may not have more than one Payment Election in
effect at any one time.  If the
Participant has elected, pursuant to Section 3.4(a)(i)(B), to commence
payment in a specified year, the Payment Election for the Deferral Period
immediately prior to such specified year shall contain the Participant’s
election regarding form of payment of amounts in his or her Account for that
and all future Deferral Periods.

 

(d)           The payment of a
single, lump-sum amount, or the payment of a number of annual installments as
designated by the Participant in the Election Agreement, to a Participant (or
his or her Beneficiary) pursuant to this Section 

 

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3.4 shall
discharge all obligations of the Company to such Participant (or his or her
Beneficiary) under the Plan.

 

Section 3.5            Subsequent
Payment Elections.  A Participant may
make a subsequent Payment Election(s) to change the time of the
commencement of payment(s) of his or her Account, the form of payment of
his or her Account, or both, with respect to an amount previously deferred
under a Deferral Election if all of the following requirements are met:

 

(a)           Such subsequent
Payment Election may not take effect until at least twelve months after the
date on which the subsequent Payment Election is made;

 

(b)           In the case of a
subsequent Payment Election related to a payment not described in Section 3.6
or Section 3.8, the first payment under such subsequent Payment Election
shall in all cases be deferred for a period of not less than five years from
the date such payment would otherwise have been made (or, in the case of
installment payments, which are treated as a single payment for purposes of
this Section 3.5, five years from the date the first installment payment
was scheduled to be paid); and

 

(c)           Any subsequent Payment
Election related to a distribution that is to be made at a specified time or
pursuant to a fixed schedule pursuant to Section 3.4 must be made not less
than twelve months prior to the date the payment was scheduled to be made under
the prior Payment Election (or, in the case of installment payments, which are
treated as a single payment for purposes of this Section 3.5, twelve
months prior to the date the first installment payment was scheduled to be
paid).

 

Section 3.6            Death
of a Participant.  In the event of
the death of a Participant, the remaining amount of the Participant’s Account
shall be paid to the Beneficiary or Beneficiaries designated in a writing on a
form that the Company may designate from time to time (the “Beneficiary
Designation”), in accordance with the Participant’s Payment Election, or in
accordance with a special payment election filed by the Participant with the
Company at the same time as the Participant’s Payment Election under Section 3.4
or Section 3.5 is filed with the Company that is to be operative and
override any other payment election under the Participant’s Payment Election in
the event of the death of the Participant. 
Any special payment election filed by a Participant subsequent to the
filing of his or her initial Payment Election under Section 3.4 must meet
such additional requirements as the Company determines are appropriate to avoid
the inclusion of the amounts subject to such special payment election in the
gross income of a Participant or Beneficiary under Section 409A(a)(1) of
the Code, including, without limitation, the requirements under Section 3.5.  A Participant’s Beneficiary Designation may
be changed at any time prior to his or her death by the execution and delivery
of a new Beneficiary Designation.  The
Beneficiary Designation on file with the Company that bears the latest date at
the time of the Participant’s death shall govern.  In the absence of a Beneficiary Designation
or the failure of any Beneficiary to survive 

 

9

 

the Participant, the amount of the Participant’s
Account shall be paid to the Participant’s estate in  a lump sum.  In the
event of the death of the Beneficiary or Beneficiaries after the death of a
Participant, the amount of the Participant’s Account shall be paid to the
estate of the last surviving Beneficiary in a lump sum.

 

Section 3.7            Small Payments.  Notwithstanding the foregoing, if at the time
of a Participant’s Termination of Service the Participant’s Account  balance is less than $100,000, such
Account shall be automatically paid to such Participant in a single, lump-sum
payment on the date of such Termination of Service;  provided, however, that if the
Participant is a Key Employee at the time of his or her Termination of Service,
then the payment on account of a Termination of Service shall be paid on the
first day of the seventh month after such Termination of Service (or, if
earlier, the date of death).

 

Section 3.8            Unforeseeable
Emergency.  Notwithstanding the
foregoing, in the event of an Unforeseeable Emergency and at the request of a
Participant, accelerated payment shall be made to the Participant of all or a
part of his or her Account, together with the earnings thereon.  Payments of amounts as a result of an
Unforeseeable Emergency may not exceed the amount necessary to satisfy such
Unforeseeable Emergency plus amounts necessary to pay taxes reasonably
anticipated as a result of the distribution(s), after taking into account the
extent to which the hardship is or may be relieved through reimbursement or
compensation by insurance or otherwise or by liquidation of the Participant’s
assets (to the extent the liquidation of such assets would not itself cause
severe financial hardship).

 

Section 3.9            Termination
of Participation.  Notwithstanding
any other provision of the Plan, a Participant’s active participation in the
Plan shall terminate upon a Termination of Service.

 

ARTICLE
IV.  ADMINISTRATION

 

Section 4.1            Administration.

 

(a)           The Plan shall be
administered by the Plan Administrator. 
The Plan Administrator shall have discretion to interpret where
necessary all provisions of the Plan (including, without limitation, by
supplying omissions from, correcting deficiencies in, or resolving inconsistencies
or ambiguities in, the language of the Plan), to make factual findings with
respect to any issue arising under the Plan, to determine the rights and status
under the Plan of Participants or other persons, to resolve questions
(including factual questions) or disputes arising under the Plan and to make
any determinations with respect to the benefits payable under the Plan and the
persons entitled thereto as may be necessary for the purposes of the Plan.  Without limiting the generality of the foregoing,
the Plan Administrator is hereby granted the authority (i) to determine
whether a particular director is a Participant, and (ii) to determine if a
person is entitled to benefits hereunder and, if so, the amount and duration of
such benefits.  The Plan Administrator’s
determination of the rights of any person 

 

10

 

hereunder shall be
final and binding on all persons, subject only to the provisions of Sections
4.2 and 4.3 hereof.

 

(b)           The Plan
Administrator may delegate any of its administrative duties, including, without
limitation, duties with respect to the processing, review, investigation,
approval and payment of benefits, to a named administrator(s) or an
employee of the Company.

 

(c)           It is intended that,
to the extent applicable, all Participant elections hereunder will comply with
the Section 409A of the Code.  The
Plan Administrator is authorized to adopt rules or regulations deemed
necessary or appropriate in connection therewith to anticipate and/or comply
with the requirements thereof (including any transition rules thereunder).

 

Section 4.2            Regulations.  The Plan Administrator shall promulgate any rules and
regulations it deems necessary in order to carry out the purposes of the Plan
or to interpret the provisions of the Plan; provided, however,
that no rule, regulation or interpretation shall be contrary to the provisions
of the Plan or Section 409A of the Code. 
The rules, regulations and interpretations made by the Plan
Administrator shall, subject only to the provisions of Section 4.3 hereof,
be final and binding on all persons.

 

Section 4.3            Revocability
of Plan Administrator/Employer Action. 
Any action taken by the Plan Administrator or the employer with respect
to the rights or benefits under the Plan of any person shall be revocable by
the Plan Administrator or the employer as to payments not yet made to such
person, and acceptance of any benefits under the Plan constitutes acceptance of
and agreement to the Plan Administrator’s or the employer’s making any
appropriate adjustments in future payments to such person to recover from such
person any excess payment or make up any underpayment previously made to him or
her.

 

ARTICLE
V.  AMENDMENT AND TERMINATION

 

Section 5.1            Amendment.  The Committee may at any time (without the
consent of the Participants) amend any or all of the provisions of this Plan,
except that no such amendment may adversely affect the amount of any
Participant’s accrued benefit as of the date of such amendment, without the
prior written consent of the affected Participant.  A proper amendment of this Plan automatically
shall effect a corresponding amendment to all Participants’ rights hereunder.

 

Section 5.2            Termination.  The Committee, in its sole discretion, may
terminate this Plan at any time and for any reason whatsoever except that no
such termination may adversely affect the amount of any Participant’s accrued
benefit as of the date of such termination, without the prior written consent
of the affected Participant. 
Notwithstanding the preceding sentence, the Committee, in its sole
discretion, may terminate this Plan to the extent and in circumstances
described in Treas. Reg. § 1.409A-3(j)(4)(ix), or any successor
provision.  A proper termination of this
Plan automatically shall effect a termination of all Participants’ rights and
benefits hereunder 

 

11

 

without further action, to the extent that such
Participants have received payment of their balances under the Plan.  Written notice of any termination shall be
given to the Participants as soon as practicable after a proper termination.

 

ARTICLE
VI.  MISCELLANEOUS

 

Section 6.1            Section 409A
of the Code.  It is intended that the
Plan (including all amendments thereto) comply with the provisions of Section 409A
of the Code, so as to prevent the inclusion in gross income of any retirement
benefit accrued hereunder in a taxable year that is prior to the taxable year
or years in which such amount would otherwise be actually distributed or made
available to the Participants.  It is
intended that the Plan shall be administered in a manner that will comply with Section 409A
of the Code.

 

Section 6.2            Non-Alienation
of Deferred Compensation.  No right
or interest under the Plan of any Participant or Beneficiary shall be (a) assignable
or transferable in any manner, (b) subject to alienation, anticipation,
sale, pledge, encumbrance, attachment, garnishment or other legal process or (c) in
any manner liable for or subject to the debts or liabilities of the Participant
or Beneficiary.  Notwithstanding the
foregoing, to the extent permitted by Section 409A of the Code, the
Committee shall honor a judgment, order or decree from a state domestic
relations court which requires the payment of part or all of a Participant’s or
Beneficiary’s interest under this Plan to an “alternate payee” as defined in Section 414(p) of
the Code.

 

Section 6.3            Interest
of Participant.  The obligation of
the Company under the Plan to make payment of amounts reflected in an Account
merely constitutes the unsecured promise of the Company to make payments from
its general assets and no Participant or Beneficiary shall have any interest
in, or a lien or prior claim upon, any property of the Company or a property
interest in his or her Account.  Further,
no Participant or Beneficiary shall have any claim whatsoever against any
Subsidiary for amounts reflected in an Account. 
It is the intention of the Company that the Plan be unfunded for tax
purposes and for purposes of Title I of the Employee Retirement Income
Security Act of 1974, as amended.  The
Company may, but need not, establish a trust to fund its obligations under the
Plan.  In such event, the Company may establish
a trust or use an already existing trust, either the Company’s Amended and
Restated Master Trust, dated January 1, 2001, or the Company’s Second
Amended and Restated Master Trust, dated January 1, 2001 (such new trust
or an existing trust, each, a “Master Trust”), and may fund such Master Trust; provided,
however, that any funds contained therein shall remain liable for the
claims of the Company’s general creditors and provided, further, no amount
shall be transferred to a Master Trust if, pursuant to Section 409A(b)(3)(A) of
the Code, such amount would, for purposes of Section 83 of the Code, be
treated as property transferred in connection with the performance of services.  Notwithstanding the above, upon the earlier
to occur of (a) a Change of Control or (b) a declaration by the Board
that a Change of Control is imminent, the Company shall promptly to the extent
it has not previously done so transfer to the trustee of such Master Trust, to
be added to the principal thereof, an amount equal to (A) the aggregate
amount credited to the Accounts of all of the Participants and 

 

12

 

Beneficiaries under the Plan, less (B) the
surplus, if any, in the Master Trust at such time that is not dedicated to the
payment of benefits under any other benefit plan sponsored by the Company; provided,
however, no amount shall be transferred to a Master Trust if, pursuant
to Section 409A(b)(3)(A) of the Code, such amount would, for purposes
of Section 83 of the Code, be treated as property transferred in
connection with the performance of services.

 

Section 6.4            Claims
of Other Persons.  The provisions of
the Plan shall in no event be construed as giving any other person, firm or
corporation any legal or equitable right as against the Company or any
Subsidiary or the officers, employees or directors of the Company or any
Subsidiary, except any such rights as are specifically provided for in the Plan
or are hereafter created in accordance with the terms and provisions of the
Plan.

 

Section 6.5            Severability.  The invalidity and unenforceability of any
particular provision of the Plan shall not affect any other provision hereof,
and the Plan shall be construed in all respects as if such invalid or
unenforceable provision were omitted.

 

Section 6.6            Expenses.  The Company shall pay all expenses incurred
in the administration and operation of the Plan.

 

Section 6.7            Governing
Law.  Except when preempted by
federal law, this Plan shall be regulated, construed and administered under the
laws of the State of Ohio.

 

Section 6.8            Relationship
to Other Plans.  The Plan is intended
to serve the purposes of and to be consistent with any incentive compensation
plan approved by the Committee for purposes of the Plan.

 

Section 6.9            Headings;
Interpretation.

 

(a)           Headings in this
Plan are inserted for convenience of reference only and are not to be
considered in the construction of the provisions hereof.

 

(b)           Any reference in
this Plan to Section 409A of the Code will also include any regulations or
any other formal guidance, promulgated with respect to such Section 409A
by the U.S. Department of Treasury or the Internal Revenue Service.

 

(c)           For purposes of the
Plan, the phrase “permitted by Section 409A of the Code,” or words or
phrases of similar import, shall mean that the event or circumstance that may
occur or exist only if permitted by Section 409A of the Code would not
cause an amount deferred or payable under the Plan to be includible in the
gross income of a Participant or Beneficiary under Section 409A(a)(1) of
the Code.

 

13Exhibit 4.01(a)

 

 

 

EQUITABLE GAS COMPANY

 

TO

 

PITTSBURGH NATIONAL BANK

 

Trustee

 

 

Indenture

 

Dated as of April 1, 1983

 

 

Providing for Issuance of Securities in
Series

 

NOTE:  Included herein is the
Board Resolution (as defined herein) establishing certain terms and provisions
of the “Debentures, 121/8% Series Due April 1, 2008”, the
first series of Securities (as defined herein) issued hereunder. The terms of
any additional series of Securities issued hereunder will be established in or
pursuant to indentures supplemental hereto or Board Resolutions, to which
reference must be made for statements of such terms.

 

 

 

 

EQUITABLE GAS COMPANY

 

Reconciliation and tie between Trust
Indenture Act of 1939 and

Indenture, dated as of April 1, 1983

 

	
  Trust Indenture

  Act Section

  	
   

  	
   

  	
  Indenture Section

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  § 310

  	
  (a)(1)

  	
   

  	
   

  	
  609

  
	
   

  	
  (a)(2)

  	
   

  	
   

  	
  609

  
	
   

  	
  (a)(3)

  	
   

  	
   

  	
  Not Applicable

  
	
   

  	
  (a)(4)

  	
   

  	
   

  	
  Not Applicable

  
	
   

  	
  (b)

  	
   

  	
   

  	
  608

  
	
   

  	
   

  	
   

  	
   

  	
  610

  
	
  § 311

  	
  (a)

  	
   

  	
   

  	
  613(a)

  
	
   

  	
  (b)

  	
   

  	
   

  	
  613(b)

  
	
   

  	
  (b)(2)

  	
   

  	
   

  	
  703(a)(2)

  
	
   

  	
   

  	
   

  	
   

  	
  703(b)

  
	
  § 312

  	
  (a)

  	
   

  	
   

  	
  701

  
	
   

  	
   

  	
   

  	
   

  	
  702(a)

  
	
   

  	
  (b)

  	
   

  	
   

  	
  702(b)

  
	
   

  	
  (c)

  	
   

  	
   

  	
  702(c)

  
	
  § 313

  	
  (a)

  	
   

  	
   

  	
  703(a)

  
	
   

  	
  (b)

  	
   

  	
   

  	
  703(b)

  
	
   

  	
  (c)

  	
   

  	
   

  	
  703(a), 703(b)

  
	
   

  	
  (d)

  	
   

  	
   

  	
  703(c)

  
	
  § 314

  	
  (a)

  	
   

  	
   

  	
  704

  
	
   

  	
  (b)

  	
   

  	
   

  	
  Not Applicable

  
	
   

  	
  (c)(1)

  	
   

  	
   

  	
  102

  
	
   

  	
  (c)(2)

  	
   

  	
   

  	
  102

  
	
   

  	
  (c)(3)

  	
   

  	
   

  	
  Not Applicable

  
	
   

  	
  (d)

  	
   

  	
   

  	
  Not Applicable

  
	
   

  	
  (e)

  	
   

  	
   

  	
  102

  
	
  § 315

  	
  (a)

  	
   

  	
   

  	
  601(a)

  
	
   

  	
  (b)

  	
   

  	
   

  	
  602

  
	
   

  	
   

  	
   

  	
   

  	
  703(a)(6)

  
	
   

  	
  (c)

  	
   

  	
   

  	
  601(b)

  
	
   

  	
  (d)

  	
   

  	
   

  	
  601(c)

  
	
   

  	
  (d)(1)

  	
   

  	
   

  	
  601(a)(1)

  
	
   

  	
  (d)(2)

  	
   

  	
   

  	
  601(c)(2)

  
	
   

  	
  (d)(3)

  	
   

  	
   

  	
  601(c)(3)

  
	
   

  	
  (e)

  	
   

  	
   

  	
  514

  

 

 

	
  Trust Indenture

  Act Section

  	
   

  	
   

  	
  Indenture Section

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  § 316

  	
  (a)

  	
   

  	
   

  	
  101, 

  	
  definition of “Outstanding”

  
	
   

  	
  (a)(1)(A)

  	
   

  	
   

  	
  502

  
	
   

  	
   

  	
   

  	
   

  	
  512

  
	
   

  	
  (a)(1)(B)

  	
   

  	
   

  	
  513

  
	
   

  	
  (a)(2)

  	
   

  	
   

  	
  Not Applicable

  
	
   

  	
  (b)

  	
   

  	
   

  	
  508

  
	
  § 317

  	
  (a)(1)

  	
   

  	
   

  	
  503

  
	
   

  	
  (a)(2)

  	
   

  	
   

  	
  504

  
	
   

  	
  (b)

  	
   

  	
   

  	
  1003

  
	
  § 318

  	
  (a)

  	
   

  	
   

  	
  107

  

 

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

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  PAGE

  
	
  PARTIES

  	
   

  	
  1

  
	
  RECITALS OF
  THE COMPANY

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE ONE

  	
   

  	
   

  
	
   

  	
  DEFINITIONS AND OTHER PROVISIONS OF GENERAL
  APPLICATION

  	
   

  	
   

  
	
  SECTION   101.

  	
  Definitions:

  	
   

  	
   

  
	
   

  	
  Act

  	
   

  	
  2

  
	
   

  	
  Affiliate; control

  	
   

  	
  2

  
	
   

  	
  Authenticating Agent

  	
   

  	
  2

  
	
   

  	
  Board of Directors

  	
   

  	
  2

  
	
   

  	
  Board Resolution

  	
   

  	
  2

  
	
   

  	
  Business Day

  	
   

  	
  2

  
	
   

  	
  Commission

  	
   

  	
  2

  
	
   

  	
  Company

  	
   

  	
  2

  
	
   

  	
  Company Request; Company Order

  	
   

  	
  3

  
	
   

  	
  Consolidated Funded Debt

  	
   

  	
  3

  
	
   

  	
  Consolidated Net worth

  	
   

  	
  3

  
	
   

  	
  Consolidated Non-utility Property

  	
   

  	
  3

  
	
   

  	
  Consolidated Utility Property

  	
   

  	
  3

  
	
   

  	
  Corporate Trust Office

  	
   

  	
  3

  
	
   

  	
  Corporation

  	
   

  	
  3

  
	
   

  	
  Defaulted Interest

  	
   

  	
  3

  
	
   

  	
  Divisional Lien

  	
   

  	
  3

  
	
   

  	
  Event of Default

  	
   

  	
  4

  
	
   

  	
  Funded Debt

  	
   

  	
  4

  
	
   

  	
  Government
  Obligations

  	
   

  	
  4

  
	
   

  	
  Holder

  	
   

  	
  4

  
	
   

  	
  Indenture

  	
   

  	
  4

  
	
   

  	
  Interest

  	
   

  	
  5

  
	
   

  	
  Interest
  Payment Date

  	
   

  	
  5

  
	
   

  	
  Maturity

  	
   

  	
  5

  
	
   

  	
  Minority
  Interests in Capital Stock

  	
   

  	
  5

  
	
   

  	
  Net Cost

  	
   

  	
  5

  
	
   

  	
  Net Worth

  	
   

  	
  6

  
	
   

  	
  Officers’ Certificate

  	
   

  	
  6

  
	
   

  	
  Opinion of Counsel

  	
   

  	
  6

  
	
   

  	
  Original Issue Discount Security

  	
   

  	
  6

  
	
   

  	
  Outstanding

  	
   

  	
  6

  
	
   

  	
  Paying Agent

  	
   

  	
  7

  

 

NOTE: This table of contents shall not, for any purpose, be deemed to
be a part of the Indenture.

 

 

	
   

  	
   

  	
   

  	
  PAGE

  
	
   

  	
  Person

  	
   

  	
  7

  
	
   

  	
  Place of
  Payment

  	
   

  	
  7

  
	
   

  	
  Predecessor
  Security

  	
   

  	
  7

  
	
   

  	
  Redemption
  Date

  	
   

  	
  8

  
	
   

  	
  Redemption
  Price

  	
   

  	
  8

  
	
   

  	
  Regular
  Record Date

  	
   

  	
  8

  
	
   

  	
  Repayment
  Date

  	
   

  	
  8

  
	
   

  	
  Repayment
  Price

  	
   

  	
  8

  
	
   

  	
  Responsible
  Officer

  	
   

  	
  8

  
	
   

  	
  Securities

  	
   

  	
  8

  
	
   

  	
  Security
  Register and Security Registrar

  	
   

  	
  8

  
	
   

  	
  Special
  Record Date

  	
   

  	
  8

  
	
   

  	
  Stated
  Maturity

  	
   

  	
  8

  
	
   

  	
  Subsidiary

  	
   

  	
  9

  
	
   

  	
  Trustee

  	
   

  	
  9

  
	
   

  	
  Trust
  Indenture Act

  	
   

  	
  9

  
	
   

  	
  Vice
  President

  	
   

  	
  9

  
	
   

  	
  Wholly-owned
  Subsidiary

  	
   

  	
  9

  
	
  SECTION   102.

  	
  Compliance
  Certificates and Opinions

  	
   

  	
  9

  
	
  SECTION   103.

  	
  Form of
  Documents Delivered to Trustee

  	
   

  	
  10

  
	
  SECTION   104.

  	
  Acts of
  Holders

  	
   

  	
  11

  
	
  SECTION   105.

  	
  Notices,
  Etc., to Trustee and Company

  	
   

  	
  12

  
	
  SECTION   106.

  	
  Notice to
  Holders; Waiver

  	
   

  	
  12

  
	
  SECTION   107.

  	
  Conflict
  with Trust Indenture Act

  	
   

  	
  12

  
	
  SECTION   108.

  	
  Effect of
  Headings and Table of Contents

  	
   

  	
  13

  
	
  SECTION   109.

  	
  Successors
  and Assigns

  	
   

  	
  13

  
	
  SECTION   110.

  	
  Separability
  Clause

  	
   

  	
  13

  
	
  SECTION   111.

  	
  Benefits of
  Indenture

  	
   

  	
  13

  
	
  SECTION   112.

  	
  Governing
  Law

  	
   

  	
  13

  
	
  SECTION   113.

  	
  Legal
  Holidays

  	
   

  	
  13

  
	
  SECTION   114.

  	
  Indenture
  and Securities Solely Corporate Obligations

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE TWO

  	
   

  	
   

  
	
  Security Forms

  	
   

  	
   

  
	
  SECTION   201.

  	
  Forms
  Generally

  	
   

  	
  14

  
	
  SECTION   202.

  	
  Form of Face
  of Security

  	
   

  	
  14

  
	
  SECTION   203.

  	
  Form of
  Reverse of Security

  	
   

  	
  17

  
	
  SECTION   204.

  	
  Form of
  Trustee’s Certificate of Authentication

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE THREE

  	
   

  	
   

  
	
  The Securities

  	
   

  	
   

  
	
  SECTION   301.

  	
  Amount
  Unlimited; Issuable in Series

  	
   

  	
  24

  
	
  SECTION   302.

  	
  Denominations

  	
   

  	
  26

  

 

ii

 

	
   

  	
   

  	
   

  	
  PAGE

  
	
  SECTION   303.

  	
  Execution,
  Authentication, Delivery and Dating

  	
   

  	
  26

  
	
  SECTION   304.

  	
  Temporary
  Securities

  	
   

  	
  27

  
	
  SECTION   305.

  	
  Registration,
  Registration of Transfer and Exchange

  	
   

  	
  28

  
	
  SECTION   306.

  	
  Mutilated,
  Destroyed, Lost and Stolen Securities

  	
   

  	
  29

  
	
  SECTION   307.

  	
  Payment of
  Interest; Interest Rights Preserved

  	
   

  	
  30

  
	
  SECTION   308.

  	
  Persons
  Deemed Owners

  	
   

  	
  31

  
	
  SECTION   309.

  	
  Cancellation

  	
   

  	
  31

  
	
  SECTION   310.

  	
  Computation
  of Interest

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE FOUR

  	
   

  	
   

  
	
  Satisfaction and Discharge

  	
   

  	
   

  
	
  SECTION   401.

  	
  Satisfaction
  and Discharge of Indenture

  	
   

  	
  32

  
	
  SECTION   402.

  	
  Application
  of Trust Money

  	
   

  	
  33

  
	
  SECTION   403.

  	
  Satisfaction,
  Discharge and Defeasance of Securities of any Series

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE FIVE

  	
   

  	
   

  
	
  Remedies

  	
   

  	
   

  
	
  SECTION   501.

  	
  Events of
  Default

  	
   

  	
  35

  
	
  SECTION   502.

  	
  Acceleration
  of Maturity; Rescission and Annulment

  	
   

  	
  37

  
	
  SECTION   503.

  	
  Collection
  of Indebtedness and Suits for Enforcement by Trustee

  	
   

  	
  38

  
	
  SECTION   504.

  	
  Trustee May
  File Proofs of Claim

  	
   

  	
  39

  
	
  SECTION   505.

  	
  Trustee May
  Enforce Claims Without Possession of Securities

  	
   

  	
  40

  
	
  SECTION   506.

  	
  Application
  of Money Collected

  	
   

  	
  40

  
	
  SECTION   507.

  	
  Limitation
  on Suits

  	
   

  	
  40

  
	
  SECTION   508.

  	
  Unconditional
  Right of Holders to Receive Principal, Premium and Interest

  	
   

  	
  41

  
	
  SECTION   509.

  	
  Restoration
  of Rights and Remedies

  	
   

  	
  41

  
	
  SECTION   510.

  	
  Rights and
  Remedies Cumulative

  	
   

  	
  42

  
	
  SECTION   511.

  	
  Delay or
  Omission Not Waiver

  	
   

  	
  42

  
	
  SECTION   512.

  	
  Control by
  Holders

  	
   

  	
  42

  
	
  SECTION   513.

  	
  Waiver of
  Past Defaults

  	
   

  	
  43

  
	
  SECTION   514.

  	
  Undertaking
  for Costs

  	
   

  	
  43

  
	
  SECTION   515.

  	
  Waiver of
  Stay or Extension Laws

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE SIX

  	
   

  	
   

  
	
  The Trustee

  	
   

  	
   

  
	
  SECTION   601.

  	
  Certain
  Duties and Responsibilities

  	
   

  	
  44

  
	
  SECTION   602.

  	
  Notice of
  Defaults

  	
   

  	
  45

  

 

iii

 

	
   

  	
   

  	
   

  	
  PAGE

  
	
  SECTION   603.

  	
  Certain
  Rights of Trustee

  	
   

  	
  45

  
	
  SECTION   604.

  	
  Not
  Responsible for Recitals or Issuance of Securities

  	
   

  	
  47

  
	
  SECTION   605.

  	
  May Hold
  Securities

  	
   

  	
  47

  
	
  SECTION   606.

  	
  Money Held
  in Trust

  	
   

  	
  47

  
	
  SECTION   607.

  	
  Compensation
  and Reimbursement

  	
   

  	
  47

  
	
  SECTION   608.

  	
  Disqualification;
  Conflicting Interests

  	
   

  	
  48

  
	
   

  	
  (a)  Elimination of Conflicting Interest or
  Resignation

  	
   

  	
  48

  
	
   

  	
  (b)  Notice of Failure to Eliminate Conflicting
  Interest or Resign

  	
   

  	
  48

  
	
   

  	
  (c)  “Conflicting Interest” Defined

  	
   

  	
  48

  
	
   

  	
  (d)  Definition of Certain Terms Used in This
  Section

  	
   

  	
  51

  
	
   

  	
  (e)  Calculation of Percentages of Securities

  	
   

  	
  52

  
	
  SECTION   609.

  	
  Corporate
  Trustee Required; Eligibility

  	
   

  	
  54

  
	
  SECTION   610.

  	
  Resignation
  and Removal; Appointment of Successor

  	
   

  	
  54

  
	
  SECTION   611.

  	
  Acceptance
  of Appointment by Successor

  	
   

  	
  56

  
	
  SECTION   612.

  	
  Merger,
  Conversion, Consolidation or Succession to Business

  	
   

  	
  57

  
	
  SECTION   613.

  	
  Preferential
  Collection of Claims Against Company

  	
   

  	
  57

  
	
   

  	
  (a)  Segregation and Apportionment of Certain
  Collections by Trustee, Certain Exceptions

  	
   

  	
  57

  
	
   

  	
  (b)  Certain Creditor Relationships Excluded
  from Segregation and Apportionment

  	
   

  	
  60

  
	
   

  	
  (c)  Definitions of Certain Terms Used in This
  Section

  	
   

  	
  61

  
	
  SECTION   614.

  	
  Appointment
  of Authenticating Agent

  	
   

  	
  61

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN

  	
   

  	
   

  
	
  Holders’ Lists and Reports by Trustee and
  Company

  	
   

  	
   

  
	
  SECTION   701.

  	
  Company to
  Furnish Trustee Names and Addresses of Holders

  	
   

  	
  64

  
	
  SECTION   702.

  	
  Preservation
  of Information; Communications to Holders

  	
   

  	
  64

  
	
  SECTION   703.

  	
  Reports by
  Trustee

  	
   

  	
  65

  
	
  SECTION   704.

  	
  Reports by
  Company

  	
   

  	
  67

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT

  	
   

  	
   

  
	
  Consolidation, Merger, Conveyance, Transfer
  or Lease

  	
   

  	
   

  
	
  SECTION   801.

  	
  Company May Consolidate,
  Etc., Only on Certain Terms

  	
   

  	
  68

  
	
  SECTION   802.

  	
  Successor
  Corporation to be Substituted

  	
   

  	
  69

  
	
  SECTION   803.

  	
  Opinion of
  Counsel to be Given Trustee

  	
   

  	
  69

  

 

iv

 

	
   

  	
   

  	
   

  	
  PAGE

  
	
  ARTICLE NINE

  	
   

  	
   

  
	
  SUPPLEMENTAL INDENTURES

  	
   

  	
   

  
	
  SECTION   901.

  	
  Supplemental
  Indentures without Consent of Holders

  	
   

  	
  70

  
	
  SECTION   902.

  	
  Supplemental
  Indentures with Consent of Holders

  	
   

  	
  71

  
	
  SECTION   903.

  	
  Execution of
  Supplemental Indentures

  	
   

  	
  72

  
	
  SECTION   904.

  	
  Effect of
  Supplemental Indentures

  	
   

  	
  72

  
	
  SECTION   905.

  	
  Conformity
  with Trust Indenture Act

  	
   

  	
  72

  
	
  SECTION   906.

  	
  Reference in
  Securities to Supplemental Indentures

  	
   

  	
  72

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE TEN

  	
   

  	
   

  
	
  COVENANTS

  	
   

  	
   

  
	
  SECTION   1001.

  	
  Payment of
  Principal, Premium and Interest

  	
   

  	
  73

  
	
  SECTION   1002.

  	
  Maintenance
  of Office or Agency

  	
   

  	
  73

  
	
  SECTION   1003.

  	
  Money for
  Securities Payments to be Held in Trust

  	
   

  	
  74

  
	
  SECTION   1004.

  	
  Limitation
  on Liens

  	
   

  	
  76

  
	
  SECTION   1005.

  	
  Limitation
  upon Additional Funded Debt

  	
   

  	
  76

  
	
  SECTION   1006.

  	
  Corporate
  Existence

  	
   

  	
  77

  
	
  SECTION   1007.

  	
  Maintenance
  of Properties

  	
   

  	
  78

  
	
  SECTION   1008.

  	
  Payment of
  Taxes and Other Claims

  	
   

  	
  78

  
	
  SECTION   1009.

  	
  Statement by
  Officers as to Default

  	
   

  	
  78

  
	
  SECTION   1010.

  	
  Waiver of
  Certain Covenants

  	
   

  	
  79

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN

  	
   

  	
   

  
	
  REDEMPTION OF SECURITIES

  	
   

  	
   

  
	
  SECTION   1101.

  	
  Applicability
  of Article

  	
   

  	
  79

  
	
  SECTION   1102.

  	
  Election to
  Redeem; Notice to Trustee

  	
   

  	
  79

  
	
  SECTION   1103.

  	
  Selection by
  Trustee of Securities to be Redeemed

  	
   

  	
  79

  
	
  SECTION   1104.

  	
  Notice of
  Redemption

  	
   

  	
  80

  
	
  SECTION   1105.

  	
  Deposit of
  Redemption Price

  	
   

  	
  80

  
	
  SECTION   1106.

  	
  Securities
  Payable on Redemption Date

  	
   

  	
  81

  
	
  SECTION   1107.

  	
  Securities
  Redeemed in Part

  	
   

  	
  81

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE

  	
   

  	
   

  
	
  SINKING FUNDS

  	
   

  	
   

  
	
  SECTION   1201.

  	
  Applicability
  of Article

  	
   

  	
  81

  
	
  SECTION   1202.

  	
  Satisfaction
  of Sinking Fund Payments with Securities

  	
   

  	
  82

  
	
  SECTION   1203.

  	
  Redemption
  of Securities for Sinking Fund

  	
   

  	
  82

  
	
  TESTIMONIUM

  	
   

  	
  83

  
	
  SIGNATURES AND SEALS

  	
   

  	
  84

  
	
  ACKNOWLEDGMENTS

  	
   

  	
  84

  

 

v

 

INDENTURE, dated as of April 1, 1983,
between EQUITABLE GAS COMPANY, a corporation duly organized and existing under
the laws of the commonwealth of Pennsylvania (herein called the “Company”),
having its principal office at 420 Boulevard of the Allies, Pittsburgh,
Pennsylvania 15219, and PITTSBURGH NATIONAL BANK, a national banking
association duly organized and existing under the laws of the United States of
America, as Trustee (herein called the “Trustee”).

 

RECITALS OF THE COMPANY

 

The Company
has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of its unsecured debentures, notes or other
evidences of indebtedness (herein called the “Securities”), to be issued in one
or more series as in this Indenture provided.

 

All things
necessary to make this Indenture a valid agreement of the Company, in
accordance with its terms, have been done.

 

NOW,
THEREFORE, THIS INDENTURE WITNESSETH:

 

For and in
consideration of the premises and the purchase of the Securities by the Holders
thereof and with the intention of being legally bound hereby, it is mutually
covenanted and agreed, for the equal and proportionate benefit of all Holders
of the Securities or of any series thereof, as follows:

 

ARTICLE ONE

 

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

 

SECTION 101.                    Definitions.

 

For all
purposes of this Indenture, except as otherwise expressly provided or unless
the context otherwise requires:

 

(1)  the terms defined in this Article have
the meanings assigned to them in this Article and include the plural as
well as the singular;

 

(2)  all other terms used herein
which are defined in the Trust Indenture Act, either directly or by reference
therein, have the meanings assigned to them therein;

 

(3)  all accounting terms not
otherwise defined herein have the meanings assigned to them in accordance with
generally accepted accounting principles in effect at the time in question; and

 

1

 

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

 

Certain terms, used principally in Article Six,
are defined in that Article.

 

“Act”, when used with respect to any Holder,
has the meaning specified in Section 104.

 

“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 the purposes
of this definition, “control” when used with respect to any specified Person
means the power to direct the management and policies of such Person, directly
or indirectly, whether through the ownership of voting securities, by contract
or otherwise; and the terms “controlling” and “controlled” have meanings
correlative to the foregoing.

 

“Authenticating Agent” means any person
authorized by the Trustee to act on behalf of the Trustee to authenticate
Securities.

 

“Board of Directors” means either the board
of directors of the Company or any duly authorized committee appointed by the
Board of Directors.

 

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

 

“Business Day”, when used with respect to any
Place of Payment, means each Monday, Tuesday, Wednesday, Thursday and Friday
which is not a legal holiday or a day on which banking institutions in that
Place of Payment are authorized or obligated by law or executive order to
close.

 

“Commission” means the Securities and
Exchange Commission, as from time to time constituted, created under the Securities
Exchange Act of 1934, or, if at any time after the execution of this instrument
such Commission is not existing and performing the duties now assigned to it
under the Trust Indenture Act, then the body performing such duties at such
time.

 

“Company” means the Person named as the “Company”
in the first paragraph of this instrument until a successor corporation shall
have become such pursuant to the applicable provisions of this Indenture, and
thereafter “Company” shall mean such successor corporation.

 

2

 

“Company Request” or “Company Order” means a
written request or order signed in the name of the Company by its Chairman of
the Board, its President or a Vice President, and by its Treasurer, an
Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to
the Trustee.

 

“Consolidated Funded Debt” means the sum of
all Funded Debt of the Company and its Subsidiaries, after eliminating
intercompany items.

 

“Consolidated Net Worth” means, as of the
date of determination thereof, the Net Worth of the Company and its
Subsidiaries determined on a consolidated basis in accordance with generally
accepted accounting principles.

 

“Consolidated Non-utility Property” means all
property, plant and equipment of the Company and its Subsidiaries not
constituting Consolidated Utility Property.

 

“Consolidated Utility Property” means all
property, plant and equipment of the Company and its Subsidiaries used or
maintained in respect of or otherwise devoted to the business of providing
utility services to customers the rates for which at the time of determination
are regulated by appropriate state or federal regulatory authorities and
determined according to cost-of-service principles or any substitute or alternative
method based upon such principles which may be authorized by such regulatory
authorities.

 

“Corporate Trust Office” means the principal
office of the Trustee in Pittsburgh, Pennsylvania at which at any particular
time its corporate trust business shall be administered.

 

“corporation” includes corporations,
associations, companies and business trusts or similar organizations.

 

“Defaulted Interest” has the meaning
specified in Section 307.

 

“Divisional Lien” means
and includes (i) any mortgage or other lien upon or security interest in
property acquired by the Company or any of its Subsidiaries existing upon such
property at the time of its acquisition, or any mortgage or other lien upon or
security interest in property of a corporation existing upon such property
immediately prior to the time such corporation becomes a Subsidiary, in either
case whether or not assumed by the Company or any Subsidiary, or any purchase
money mortgage or other purchase money lien, security interest, security
agreement, conditional sale agreement or title retention agreement entered into
by the Company or any Subsidiary in connection with the acquisition of
additional property, including the construction of new facilities, provided that such property is not and shall not thereby be
or become encumbered in an amount in excess of 662¤3%

 

3

 

of the lesser of its
cost to the Company or any Subsidiary or its fair market value at the time of
its acquisition by the Company or any Subsidiary; or (ii) any mortgage,
security interest or other lien created to secure indebtedness issued in
exchange for or to renew or refund any indebtedness secured by any such
purchase money or other mortgage, lien or security interest or to renew or
refund any such renewal or refunding obligation, provided that
any such mortgage, security interest or lien shall not extend to any property
of the Company or any of its Subsidiaries except the property originally
subject thereto, replacements thereof and fixed improvements erected thereon.

 

“Event
of Default” has the meaning specified in Section 501.

 

“Funded
Debt” of any corporation means all indebtedness (other than indebtedness held
in treasury) of such corporation having a final maturity more than one year
after the date of the creation thereof and any indebtedness which would, in
accordance with generally accepted accounting principles, be considered the
equivalent of indebtedness having such a final maturity, notwithstanding the
fact that payments in respect thereof (whether instalment, serial maturity or
purchase, redemption or sinking fund payments or otherwise) are required to be
made by such corporation less than one year after the date of the creation
thereof and notwithstanding the fact that any amount thereof is at the time
includable also in current liabilities. In determining whether any indebtedness
constitutes Funded Debt, any indebtedness which is renewable pursuant to the
terms thereof or of a revolving credit agreement or other similar agreement to a
date more than one year after the date of the creation of such indebtedness or
which may be payable out of the proceeds of similar indebtedness which may be
incurred pursuant to the terms of such indebtedness or of any such agreement so
as in effect to permit such indebtedness to mature more than one year after the
date of the creation thereof shall be deemed to be Funded Debt.

 

“Government
Obligations” means direct obligations of, or obligations the principal of and
interest on which are fully guaranteed by, the United States of America, and
shall include such other obligations in respect of Securities of a particular
series as may be specified in the terms of such series (in accordance with Section 301)
at the time of establishment of such series.

 

“Holder”
means a Person in whose name a Security is registered in the Security Register.

 

“Indenture”
means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions

 

4

 

hereof and shall include the terms of particular series of Securities
established pursuant to any Board Resolutions or indentures supplemental hereto
as contemplated by Section 301; provided, however,
that if at any time more than one Person is acting as Trustee under this
instrument, “Indenture” shall mean with respect to any one or more series of
Securities for which such Person is Trustee, this instrument as originally
executed or as it may from time to time be supplemented or amended by one or
more indentures supplemental hereto entered into pursuant to the applicable
provisions hereof and shall include the terms of particular series of
Securities established pursuant to any Board Resolutions or indentures
supplemental hereto as contemplated hereunder, exclusive, however, of any
provisions or terms which relate solely to one or more series of Securities for
which such Person is not Trustee, regardless of when such terms or provisions
were adopted, and exclusive of any provisions or terms adopted by means of one
or more indentures supplemental hereto executed and delivered after such Person
had become such Trustee but to which such Person, as such Trustee, was not a
party.

 

“interest”, when used with respect to an Original Issue Discount
Security which by its terms bears interest only after Maturity, means interest
payable after Maturity.

 

“Interest Payment Date”, when used with respect to any Security, means
the Stated Maturity of an instalment of interest on such Security.

 

“Maturity”, when used with respect to any Security, means the date on
which the principal of such Security or an instalment of principal becomes due
and payable as therein or herein provided, whether at the Stated Maturity or by
declaration of acceleration, call for redemption or otherwise.

 

“Minority Interests in Capital Stock” means, in the case of any
Subsidiary, the sum of (a) the aggregate book value of all outstanding
shares of capital stock of such Subsidiary not owned by the Company or another
Subsidiary which have preference over any other shares of capital stock of such
Subsidiary owned by the Company or another Subsidiary, and (b) an amount
equal to the result obtained by multiplying the difference between the Net
Worth of such Subsidiary and the aggregate book value of all outstanding shares
of capital stock of such Subsidiary which have preference over the common stock
of such Subsidiary by the percentage of outstanding shares of common stock of
such Subsidiary not owned by the Company and its other Subsidiaries.

 

“Net Cost” means, in the case of Consolidated Utility Property or
Consolidated Non-utility Property, the cost of such property as recorded on the

 

5

 

books of the Company or a Subsidiary, less the amounts of depreciation,
depletion or amortization taken on the books of the Company or a Subsidiary, as
the case may be, in respect of such property up to the date as of which the net
cost of such property is being calculated.

 

“Net Worth” means, as of the date of determination thereof in the case
of any corporation, the aggregate amount of the capital stock liability of such
corporation plus (or minus in the case of a deficit) the earned and capital
surplus and premium on capital stock of such corporation, provided,
that to the extent not otherwise excluded, the cost of any treasury shares and
any stock subscribed for but unissued shall be deducted in any computation of
Net Worth.

 

“Officers’ Certificate” means a certificate signed by the Chairman of
the Board, the President or a Vice President, and by the Treasurer, an
Assistant Treasurer, the Secretary or an Assistant Secretary, of the Company,
and delivered to the Trustee.

 

“Opinion of Counsel” means a written opinion of counsel, who may be an
employee of or counsel for the Company, and who shall be acceptable to the
Trustee.

 

“Original Issue Discount Security” means any Security which provides
for an amount less than the principal amount thereof to be due and payable upon
a declaration of acceleration of the Maturity thereof pursuant to Section 502.

 

“Outstanding”, when used with respect to Securities, means, as of the
date of determination, all Securities theretofore authenticated and delivered
under this Indenture, except:

 

(i)  Securities theretofore
cancelled by the Trustee or delivered to the Trustee for cancellation;

 

(ii)  Securities, or portions
thereof, for the payment or redemption of which money in the necessary amount
has been theretofore deposited with the Trustee or any Paying Agent (other than
the Company) in trust or set aside and segregated in trust by the Company (if
the Company shall act as its own Paying Agent) for the Holders of such
Securities; provided that, if such Securities are to
be redeemed, notice of such redemption has been duly given pursuant to this
Indenture or provision therefor satisfactory to the Trustee has been made;

 

(iii)  Securities which have been
paid pursuant to Section 306 or in exchange for or in lieu of which other
Securities have been authenticated and delivered pursuant to this Indenture,
other than any such

 

6

 

Securities in respect of which there shall have been presented to the
Trustee proof satisfactory to it that such Securities are held by a bona fide
purchaser in whose hands such Securities are valid obligations of the Company;
and

 

(iv)  Securities of any series the
indebtedness in respect of which has been discharged in accordance with Section 403;

 

provided, however, that in determining whether
the Holders of the requisite principal amount of the Outstanding Securities
have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, (a) the principal amount of an Original Issue Discount
Security that shall be deemed to be Outstanding for such purposes shall be the
amount of the principal thereof that would be due and payable as of the date of
such determination upon a declaration of acceleration of the maturity thereof
pursuant to Section 502, and (b) Securities owned by the Company or
any other obligor upon the Securities or any Affiliate of the Company or of
such other obligor shall be disregarded and deemed not to be Outstanding,
except that, in determining whether the Trustee shall be protected in relying
upon any such request, demand, authorization, direction, notice, consent or
waiver, only Securities which the Trustee knows to be so owned shall be so
disregarded. Securities so owned which have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee’s right so to act with respect to such Securities and that
the pledgee is not the Company or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor.

 

“Paying Agent” means any Person authorized by the Company to pay the
principal of (and premium, if any) or interest (if any) on any Securities on
behalf of the Company.

 

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

 

“Place of Payment”, when used with respect to the Securities of any
series, means the place or places where the principal of (and premium, if any)
and interest (if any) on the Securities of that series are payable as specified
as contemplated by Section 301.

 

“Predecessor Security” of any particular Security means every previous
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 306 in exchange for or in lieu

 

7

 

of a mutilated, destroyed, lost or stolen Security shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security.

 

“Redemption Date”, when used with respect to any Security to be
redeemed, means the date fixed for such redemption by or pursuant to this
Indenture.

 

“Redemption Price”, when used with respect to any Security to be
redeemed, means the price at which it is to be redeemed pursuant to this
Indenture.

 

“Regular Record Dates” for the interest payable on any Interest Payment
Dates on the Securities of any series means the dates specified for that
purpose as contemplated by Section 301.

 

“Repayment Date” has the meaning specified in Section 203.

 

“Repayment Price” has the meaning specified in Section 203.

 

“Responsible Officer”, when used with respect to the Trustee, means the
chairman or any vice-chairman of the board of directors, the chairman or any
vice-chairman of the executive committee of the board of directors, the
chairman of the trust committee, the president, any vice president, the
secretary, any assistant secretary, the treasurer, any assistant treasurer, the
cashier, any assistant cashier, any trust officer or assistant trust officer,
the controller or any assistant controller or any other officer of the Trustee
customarily performing functions similar to those performed by any of the above
designated officers and also means, with respect to a particular corporate
trust matter, any other officer to whom such matter is referred because of his knowledge
of and familiarity with the particular subject.

 

“Securities” has the meaning stated in the first recital of this
Indenture and more particularly means any Securities authenticated and
delivered under this Indenture.

 

“Security Register” and “Security Registrar” have the respective
meanings specified in Section 305.

 

“Special Record Date” for the payment of any Defaulted Interest means a
date fixed by the Trustee pursuant to Section 307.

 

“Stated Maturity”, when used with respect to any Security or any
instalment of principal thereof or interest thereon, means the date specified
in such Security as the fixed date on which the principal of such Security or
such instalment of principal or interest is due and payable.

 

8

 

“Subsidiary” means a corporation more than 50% of the outstanding
voting stock of which is owned, directly or indirectly, by the Company or by
one or more other Subsidiaries, or by the Company and one or more other
Subsidiaries. For the purposes of this definition, “voting stock” means stock
which ordinarily has voting power for the election of directors, whether at all
times or only so long as no senior class of stock has such voting power by
reason of any contingency.

 

“Trustee” means the Person named as the “Trustee” in the first
paragraph of this instrument until a successor Trustee shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter “Trustee”
shall mean or include each Person who is then a Trustee hereunder, and if at
any time there is more than one such Person, “Trustee” as used with respect to
the Securities of any series shall mean the Trustee with respect to Securities
of that series.

 

“Trust Indenture Act” means the Trust Indenture Act of 1939 as in force
at the date as of which this instrument was executed, except as provided in Section 905.

 

“Vice President”, when used with respect to the Company or the Trustee,
means any vice president, whether or not designated by a number or a word or
words added before or after the title “vice president”.

 

“Wholly-owned Subsidiary” means at any given time any corporation all
of the outstanding securities of which having ordinary voting power (other than
securities having such power by reason of the happening of a contingency),
except for directors’ qualifying shares, shall at such time be owned by the
Company or by one or more Wholly-owned Subsidiaries, or by the Company in
conjunction with one or more Wholly-owned Subsidiaries.

 

SECTION 102.  Compliance Certificates and Opinions.

 

Upon any application or request by the Company to the Trustee to take
any action under any provision of this Indenture, the Company shall furnish to
the Trustee an Officer’s Certificate stating that all conditions precedent, if
any, provided for in this Indenture relating to the proposed action have been
complied with and an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent, if any, have been complied with, except
that in the case of any such application or request as to which the furnishing
of such documents is specifically required by any provision of this Indenture
relating to such particular application or request, no additional certificate
or opinion need be furnished.

 

9

 

Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include

 

(1)  a statement that each Person
signing such certificate or opinion has read such condition or covenant and the
definitions herein relating thereto;

 

(2)  a brief statement as to the
nature and scope of the examination or investigation upon which the statements
or opinions contained in such certificate or opinion are based;

 

(3)  a statement that, in the
opinion of each such Person, such Person has made such examination or
investigation as is necessary to enable him to express an informed opinion as
to whether or not such condition or covenant has been complied with; and

 

(4)  a statement as to whether, in
the opinion of each such Person, such condition or covenant has been complied
with.

 

SECTION 103.  Form of Documents Delivered to Trustee.

 

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

 

Any certificate or opinion of an officer of the Company may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate or Opinion of Counsel may be based, insofar as
it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company stating that the
information with respect to such factual matters is in this possession of the
Company, unless such counsel knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
such matters are erroneous.

 

Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other

 

10

 

instruments under this Indenture, they may, but need not, be
consolidated and form one instrument.

 

SECTION 104.  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 agent duly appointed in writing; and, except as herein
otherwise expressly provided, such action shall become effective when such instrument
or instruments are delivered to the Trustee and, where it is hereby expressly
required, to the Company. Such instrument or instruments (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the
“Act” of the Holders signing such instrument or instruments. Proof of execution
of any such instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Indenture and (subject to Section 601)
conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Section.

 

(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 a certificate of a 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 a signer acting in a capacity
other than his individual capacity, such certificate or affidavit shall also
constitute sufficient proof of his authority. 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 which the Trustee
deems sufficient.

 

(c)   The ownership of Securities
shall be proved by the Security Register or a certificate of the Security
Registrar.

 

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

 

11

 

SECTION 105.    Notices, Etc., to Trustee and Company.

 

Any request, demand,
authorization, direction, notice, consent, waiver or Act of Holders or other
document provided or permitted by this Indenture to be made upon, given or
furnished to, or filed with,

 

(1) the
Trustee by any Holder or by the Company shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing to or with the Trustee
at its Corporate Trust Office, or

 

(2) the
Company by the Trustee or by any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing and
mailed, first-class postage prepaid, to the Company addressed to it at the
address of its principal office specified in the first paragraph of this instrument
or at any other address previously furnished in writing to the Trustee by the
Company.

 

SECTION 106.    Notice to Holders; Waiver.

 

Where this Indenture
provides for notice to Holders of any event, such notice shall be sufficiently
given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder affected by such event, at his
address as it appears in the Security Register, not later than the latest date,
and not earlier than the earliest date, prescribed for the giving of such
notice. In any case where notice to Holders is given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to
other Holders. Where this Indenture provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of
such notice. Waivers of notice by Holders shall be filed with the Trustee, but
such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.

 

In case by reason of the
suspension of regular mail service or by reason of any other cause it shall be
impracticable to give such notice by mail, then such notification as shall be
made with the approval of the Trustee shall constitute a sufficient
notification for every purpose hereunder.

 

SECTION 107.    Conflict with Trust Indenture Act.

 

If and to the extent that
any provision hereof limits, qualifies or conflicts with another provision
hereof which is required to be included in this Indenture by any of the
provisions of the Trust Indenture Act, such required provision shall control.

 

12

 

SECTION 108.    Effect of Headings and Table of Contents.

 

The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect
the construction hereof.

 

SECTION 109.    Successors and Assigns.

 

All covenants and
agreements in this Indenture by the Company shall bind its successors and
assigns, whether so expressed or not.

 

SECTION 110.    Separability Clause.

 

In case any provision in
this Indenture or in the Securities 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 111.    Benefits of Indenture.

 

Nothing in this Indenture
or in the Securities, express 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 Indenture.

 

SECTION 112.    Governing Law.

 

This Indenture and the
Securities shall be governed by and construed in accordance with the laws of
the Commonwealth of Pennsylvania.

 

SECTION 113.    Legal Holidays.

 

In any case where any
Interest Payment Date, Redemption Date or Stated Maturity of any Security shall
not be a Business Day at any Place of Payment, then (notwithstanding any other
provision of this Indenture or of the Securities) payment of interest (if any)
or principal (and premium, if any) need not be made on such date, but may be made
on the next succeeding day which at such Place of Payment is a Business Day
with the same force and effect as if made on the Interest Payment Date or
Redemption Date, or at the Stated Maturity, provided that no interest shall
accrue for the period from and after such Interest Payment Date, Redemption
Date or Stated Maturity, as the case may be.

 

SECTION 114.    Indenture and Securities Solely Corporate Obligations.

 

No recourse for the
payment of the principal of (and premium, if any) and interest (if any) on any
Security, or for any claim based thereon or otherwise in respect thereof, and
no recourse under or upon any obligation, covenant or agreement of the Company
in this Indenture, or in any Security, or because of the creation of any
indebtedness represented thereby, shall be had against any incorporator,
stockholder, officer or director, as such, past,

 

13

 

present or future, of the
Company, either directly or through the Company, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise; it being expressly understood that all such
liability is hereby expressly waived and released as a condition of, and as a
consideration for, the execution of this Indenture and the issue of any series
of Securities.

 

ARTICLE TWO

 

SECURITY FORMS

 

SECTION 201.    Forms Generally.

 

The Securities of each
series shall be in substantially the form set forth in this Article, or in such
other form as shall be established by or pursuant to a Board Resolution or one
or more indentures supplemental hereto, in each case with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture, and may have such letters, numbers or other marks
of identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers executing such Securities,
as evidenced by their execution of the Securities. If the form of Securities of
any series is established by action taken pursuant to a Board Resolution, a
copy of an appropriate record of such action shall be certified by the
Secretary or an Assistant Secretary of the Company and delivered to the Trustee
at or prior to the delivery of the Company Order contemplated by Section 303
for the authentication and delivery of such Securities.

 

The Trustee’s
certificates of authentication shall be in substantially the form set forth in
this Article.

 

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

 

SECTION 202.    Form of Face of Security.

 

[If the
Security is an Original Issue Discount Security, insert—FOR PURPOSES
OF SECTION 1232 OF THE UNITED STATES INTERNAL REVENUE CODE OF 1954, AS
AMENDED, THE ISSUE PRICE OF THIS SECURITY IS .....% OF ITS PRINCIPAL AMOUNT AND
THE ISSUE DATE IS ........, 19....]

 

14

 

EQUITABLE GAS
COMPANY

 

	
  No.

  	
   

  	
  $

  

 

EQUITABLE GAS
COMPANY, a corporation duly organized and existing under the laws of the Commonwealth
of Pennsylvania (herein called the “Company”), for value received, hereby
promises to pay to                                 , or
registered assigns, the principal sum of                                    Dollars on                                 [If the Security is to bear
interest prior to Maturity, insert—, and to pay interest thereon
from                    or from the most
recent Interest Payment Date to which interest has been paid or duly provided
for, semi-annually on               and                   in each year, commencing           , at the rate of    % per annum, until the principal hereof is
paid or made available for payment and (to the extent that the payment of such
interest shall be legally enforceable) at the [rate of     %] [same rate] per annum on any overdue
principal and premium and on any overdue instalment of interest. The interest
so payable, and punctually paid or duly provided for, on any Interest Payment
Date will, as provided in the Indenture hereinafter referred to, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the         or          (whether or not a Business Day), as
the case may be, next preceding such Interest Payment Date. Any such interest
not so punctually paid or duly provided for will forthwith cease to be payable
to the Holder on such Regular Record Date and 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].

 

[If the
Security is not to bear interest prior to Maturity, insert—The
principal of this Security shall not bear interest except in the case of a
default in payment of principal upon acceleration, upon redemption or at Stated
Maturity and in such case the overdue principal of this Security shall bear
interest at the rate of      % per annum
(to the extent that the payment of such interest shall be legally enforceable),
which shall accrue from the date

 

15

 

of
such default in payment to the date payment of such principal has been made or
duly provided for. Interest on any overdue principal shall be payable on
demand. Any such interest on any overdue principal that is not so paid on
demand shall bear interest at the rate of         % per annum (to the
extent that the payment of such interest shall be legally enforceable), which
shall accrue from the date of such demand for payment to the date payment of
such interest has been made or duly provided for, and such interest shall also
be payable on demand.]

 

Payment
of the principal of (and premium, if any) and [if
applicable, insert—any such] interest on this Security will be made
at the office or agency of the Company maintained for that purpose in         , 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 [if applicable, insert—;
provided, however, that at the option of
the Company payment of interest may be made by check mailed to the address of
the Person entitled thereto as such address shall appear in the Security
Register or may be made in any other manner not unacceptable to the Trustee].

 

Reference
is hereby made to the further provisions of this Security set forth on the
reverse hereof, which further provisions shall for all purposes have the same
effect as if set forth at this place.

 

Unless
the certificate of authentication hereon has been executed by the Trustee
referred to on the reverse hereof 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 in
its corporate name by the facsimile signature of its President or one of its
Vice Presidents and has caused a facsimile of its corporate seal to be affixed
hereunto or imprinted hereon and attested by the facsimile signature of its
Secretary or one of its Assistant Secretaries.

 

	
  Dated:

  	
   

  
	
   

  	
  EQUITABLE
  GAS COMPANY

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
  [CORPORATE
  SEAL]

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  

 

16

 

SECTION 203.    Form of Reverse of Security.

 

This
Security is one of a duly authorized issue of securities of the Company (herein
called the “Securities”), issued and to be issued in one or more series under
an Indenture, dated as of April 1, 1983 (herein called the “Indenture”,
which term includes the terms and provisions of particular series of Securities
established pursuant to any Board Resolutions or indentures supplemental to the
Indenture), between the Company and Pittsburgh National Bank, 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. This Security is one of the series
designated on the face hereof [, limited in aggregate principal amount to $              ].

 

[If applicable, insert—The Securities of this series are
subject to redemption upon not less than 30 days’ notice by mail, [if applicable, insert—(1) on            in any year commencing with the year       and
ending with the year       through operation of the sinking fund for this
series at a Redemption Price equal to 100% of the principal amount, and (2)] at
any time [on or after           , 19       ], as a whole or in part,
at the election of the Company, at the following Redemption Prices (expressed
as percentages of the principal amount):

 

	
  If Redeemed

  	
   

  	
   

  	
   

  	
  If Redeemed

  	
   

  	
   

  	
   

  
	
  During the Twelve-

  	
   

  	
   

  	
   

  	
  During the Twelve-

  	
   

  	
   

  	
   

  
	
  Month Period

  	
   

  	
  Redemption

  	
   

  	
  Month Period

  	
   

  	
  Redemption

  	
   

  
	
  Beginning . . . . . . . . ,

  	
   

  	
  Price

  	
   

  	
  Beginning . . . . . . . . ,

  	
   

  	
  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

,
together in the case of any such redemption [if
applicable, insert—(whether through operation of the sinking fund or
otherwise)] with accrued interest to the Redemption Date, but interest
instalments whose Stated Maturity is on or prior to such Redemption Date will
be payable to the Holders of such Securities, or one or more Predecessor
Securities, of record at the close of

 

17

 

business
on the relevant Record Dates referred to on the face hereof, all as provided in
the Indenture.]

 

[If applicable, insert—The Securities of this series are
subject to redemption upon not less than 30 days’ notice by mail, (1) on              in any year commencing with the year       and
ending with the year       through operation of the sinking fund for this
series at the Redemption Prices for redemption through operation of the sinking
fund (expressed as percentages of the principal amount) set forth in the table
below, and (2) at any time [on or after          ], as a whole or in part, at the election
of the Company, at the Redemption Prices for redemption otherwise than through
operation of the sinking fund (expressed as percentages of the principal
amount) set forth in the table below:

 

	
  If Redeemed

  	
   

  	
  Redemption Price

  	
   

  	
  Redemption Price For

  	
   

  
	
  During the Twelve-

  	
   

  	
  For Redemption

  	
   

  	
  Redemption Otherwise

  	
   

  
	
  Month Period

  	
   

  	
  Through Operation

  	
   

  	
  Than Through Operation

  	
   

  
	
  Beginning . . . . . . . . ,

  	
   

  	
  of the Sinking Fund

  	
   

  	
  of the Sinking Fund

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

,
together in the case of any such redemption (whether through operation of the
sinking fund or otherwise) with accrued interest to the Redemption Date, but
interest instalments whose Stated Maturity is on or prior to such Redemption
Date will be payable to the Holders of such Securities, or one or more
Predecessor Securities, of record at the close of business on the relevant
Record Dates referred to on the face hereof, all as provided in the Indenture.]

 

[Notwithstanding
the foregoing, the Company may not, prior to         , redeem any Securities of this series
as contemplated by [Clause (2) of] the preceding paragraph as part of, or
in anticipation of, any refunding operation by the application, directly or
indirectly, of moneys borrowed

 

18

 

having
an interest cost to the Company (calculated in accordance with generally
accepted financial practice) of less than    % per annum.]

 

[The
sinking fund for this series provides for the redemption on or before          in each year beginning with the year        and ending with the year       of
[not less than] $           [(“mandatory sinking fund”) and not more than
$          ] aggregate principal amount
of Securities of this series. [Securities of this series acquired or redeemed
by the Company otherwise than through [mandatory] sinking fund payments may be
credited against subsequent [mandatory] sinking fund payments otherwise
required to be made.]

 

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

 

[If applicable, insert—Each Security of this series is
subject to repayment, in whole or from time to time in part, at the option of
the registered holder thereof on              (each a “Repayment Date”), at a price equal to
the principal amount thereof (the “Repayment Price”) [, if
applicable, insert — together with interest accrued to such
Repayment Date (but instalments of interest whose due date expressed in the
Securities is on or prior to a Repayment Date will be payable to the Holders of
such Securities, or one or more Predecessor Securities, of record at the close
of business on the relevant Record Dates referred to on the face hereof, all as
provided in the Indenture).]

 

A
Holder of this Security desiring to exercise his option for repayment shall, as
condition to such repayment, on or before the          
or, if such            is not
a Business Day, the next succeeding Business Day, but not earlier than the           prior to the                 in the above-mentioned years, (i) surrender
this Security in whole or in part with the form entitled “Option to Elect
Repayment” attached hereto duly completed at the office or agency of the
Company in                   ,                       ,                         , or (ii) deliver
a telegram, telex, facsimile transmission or letter from a member of a national
securities exchange or the National Association of Securities Dealers, Inc.
or a commercial bank or trust company in the United States of America, to the
Company at such office or agency, setting forth the name of the Holder of this
Security, the principal amount of this Security, the amount of this Security to
be repaid, a statement that the option to elect repayment is being made thereby
and a guarantee that this Security to be repaid with said form entitled “Option
to Elect Repayment” duly completed will be received by the Company no later
than      Business Days after the

 

19

 

date
of such telegram, telex, facsimile transmission or letter, and this Security
and form duly completed are received by the Company by such          Business Day. Either form of notice received
on or before the         preceding any such          shall be irrevocable. The written notice of
the exercise of such option shall specify the principal amount of this Security
to be repaid, which shall be $         or an integral multiple of $        in excess of $         , and in the case of a partial
repayment of this Security, shall specify the denomination or denominations of
this Security to be issued to the Holder for the portion of the principal of
this Security surrendered which is not to be repaid; provided
that the portion of the principal amount of this Security not being
repaid shall be at least $      .  All questions as to the validity, eligibility
(including time of receipt) and acceptance of any Securities for repayment will
be determined by the Company, whose determination shall be final and binding.

 

Upon
surrender of this Security for repayment the Company shall execute and the
Trustee shall authenticate and deliver without service charge to the registered
holder of the Security so surrendered a new Security or Securities of the same
series as this Security, of any authorized denomination specified in the
foregoing notice, in an aggregate principal amount equal to any portion of the
principal of the Security so surrendered which is not to be repaid.

 

Notice
of exercise of the option of repayment having been given and the Securities so
to be repaid in whole or in part having been surrendered as aforesaid, such
Securities, or the portion of the principal amount thereof being repaid, shall,
on the Repayment Date, mature and become due and payable at the price herein
specified and from and after such date (unless the Company shall default in the
payment of such price) such Securities or such portion of the principal amount
thereof shall cease to bear interest and shall be paid by the Company on the
Repayment Date.

 

If
this Security is surrendered for repayment in whole or in part but shall not be
paid on the Repayment Date, the Company shall be obligated for the principal
amount of this Security, or the portion of the principal amount thereof to be
repaid, and shall be obligated to pay interest on such principal amount or such
portion of the principal amount at the rate borne by this Security during the
period in which such failure to pay occurred until payment in full of such
principal amount or such portion of the principal amount.]

 

[If the Security is not an Original Issue Discount Security—If
an Event of Default with respect to Securities of this series shall occur and
be continuing,

 

20

 

the
principal of the Securities of this series may be declared due and payable in
the manner and with the effect provided in the Indenture.]

 

[If the Security is an Original Issue Discount Security—If an
Event of Default with respect to Securities of this series shall occur and be
continuing, an amount of principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture. Such amount shall be equal to—insert formula for
determining the amount.  Upon
payment (i) of the amount of principal so declared due and payable and (ii) of
interest on any overdue principal and overdue interest (in each case to the
extent that the payment of such interest shall be legally enforceable), all of
the Company’s obligations in respect of the payment of the principal of and
interest (if any) on the Securities of this series shall terminate.]

 

With
certain exceptions as therein provided, the Indenture provides that, with the
consent of the Holders of 662/3% in principal amount of
the Outstanding Securities of all series affected thereby, taken in the
aggregate without regard to separate series of Outstanding Securities, the
Company and the Trustee may enter into indentures supplemental to the Indenture
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of the Indenture with respect to Securities
of such series affected or of modifying in any manner the rights of the Holders
of Securities of such series affected. The Indenture also contains provisions
permitting the Holders of specified percentages in principal amount of the
Securities of each series at the time Outstanding, on behalf of the Holders of
all Securities of such series, to waive, insofar as such series is concerned,
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 unconditional, to pay the principal of (and premium, if any) and
interest (if any) on this Security at the times, place and rate, and in the
coin or currency, herein prescribed.

 

As
provided in the Indenture and subject to certain limitations therein set forth,
the transfer of this Security is registrable in the Security Register, upon surrender
of this Security for registration of transfer at the office or

 

21

 

agency
of the Company maintained for the purpose of payment of the principal of (and
premium, if any) and interest (if any) on this Security in      ,
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 for the
same aggregate principal amount, will be issued to the designated transferee or
transferees.

 

The
Securities of this series are issuable only in registered form without coupons
in denominations of $          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 a different authorized denomination, as
requested by the Holder surrendering the same.

 

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

 

Prior
to due presentment of this 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 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.

 

This
Security shall be governed by and construed in accordance with the laws of the
Commonwealth of Pennsylvania.

 

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

 

22

 

[If applicable, insert—
 [FORM OF OPTION TO ELECT REPAYMENT]

 

OPTION TO ELECT REPAYMENT

 

The undersigned hereby irrevocably requests and instructs the Company
to repay the within Security (or portion thereof specified below) pursuant to
its terms at a price equal to the principal amount thereof [, if applicable, insert— together with interest to the
Repayment Date,] to the undersigned, at

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

(Please Print or Typewrite Name and Address
of the Undersigned)

 

For this Security to be repaid the Company
must receive at its office or agency in                ,
or at such additional place or places of which the Company shall from time to
time notify the Holder of the within Security, on or before the           
or, if such              
is not a Business Day, the next succeeding Business Day, but not earlier than
the            , prior
to             , (i) this
Security with this “Option to Elect Repayment” form duly completed or (ii) a
telegram, telex, facsimile transmission or letter from a member of a national
securities exchange or the National Association of Securities Dealers, Inc.
or a commercial bank or a trust company in the United States of America setting
forth the name of the holder of this Security, the principal amount of this
Security, the amount of this Security to be repaid, a statement that the option
to elect repayment is being made thereby and a guarantee that this Security
with this “Option to Elect Repayment” form duly completed will be received by
the Company not later than         Business
Days after the date of such telegram, telex, facsimile transmission or letter,
and this Security and form duly completed are received by the Company by such
               Business
Day.

 

If less than the entire principal amount of the within Security is to
be repaid, specify the portion thereof (which shall be $         
or an integral multiple of $         in
excess of $         ) which the Holder
elects to have repaid: $         ;
and specify the denomination or denominations (which Shall be $         or
an integral multiple of $         in
excess of $         ) of the
Security or Securities to be issued to the Holder for the portion of the within
Security not being repaid (in the absence of any such specification, one such
Security will be issued for the portion not being repaid): $         .

 

23

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
  Note: the signature to this Option to Elect Re-payment must
  correspond with the name as written upon the face of the Security in every
  particular without alteration or enlargement.]

  

 

 

SECTION 204.   Form of Trustee’s Certificate of Authentication.

 

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

 

	
   

  	
  PITTSBURGH NATIONAL BANK,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  
					

 

ARTICLE THREE

 

THE SECURITIES

 

SECTION 301.   Amount Unlimited; Issuable
in Series.

 

The aggregate principal amount of Securities which may be authenticated
and delivered under this Indenture is unlimited.

 

The Securities may be issued in one or more series. There shall be
established in or pursuant to a Board Resolution or established in one or more
indentures supplemental hereto, prior to the issuance of Securities of any
series,

 

(1)  the title of the Securities of
the series (which shall distinguish the Securities of the series from all other
Securities);

 

(2)  any limit upon the aggregate
principal amount of the Securities of the series which may be authenticated and
delivered under this Indenture (except for Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu of,
other Securities of the series pursuant to Section 304, 305, 306, 906 or
1107);

 

(3)  the date or dates on which the
principal of the Securities of the series is payable;

 

(4)  the rate or rates at which the
Securities of the series shall bear interest, if any, the date or dates from
which such interest shall accrue, the Interest Payment Dates on which such
interest shall be payable and

 

24

 

the Regular Record Dates for the interest payable on any Interest
Payment Dates;

 

(5)  the place or places where the
principal of (and premium, if any) and interest (if any) on Securities of the
series shall be payable;

 

(6)  the period or periods within
which, the price or prices at which and the terms and conditions upon which
Securities of the series may be redeemed, in whole or in part, at the option of
the Company;

 

(7)  the obligation, if any, of the
Company to redeem or purchase Securities of the series pursuant to any sinking
fund or analogous provisions or at the option of a Holder thereof and the
period or periods within which, the price or prices at which and the terms and
conditions upon which Securities of the series shall be redeemed or purchased,
in whole or in part, pursuant to such obligation;

 

(8)  if other than denominations of
$1,000 and any integral multiple thereof, the denominations in which Securities
of the series shall be issuable;

 

(9)  provisions, if any, for the
convertibility of Securities of the series into shares of capital stock or
other securities of the Company;

 

(10)  the obligation, if any, of
the Company to repay Securities of the series (at the option of Holders or
otherwise) prior to the date on which the principal of the Security is due as
expressed in the Security and the period or periods within which, the price or
prices at which and the terms and conditions upon which Securities of the
series shall be so repaid, in whole or in part, pursuant to such obligation;

 

(11)  if other than the principal
amount thereof, the portion of the principal amount of Securities of the series
which shall be payable upon declaration of acceleration of the Maturity thereof
pursuant to Section 502;

 

(12)  the application, if any, of Section 403;

 

(13)  the additional covenants, if
any, to be imposed upon the Company in respect of the Securities of any series;
and

 

(14)  any other terms of the series
(which terms shall not be inconsistent with the provisions of this Indenture).

 

Any term of a Security of any series shall be sufficiently established
if there is set forth the formula or method by which it is to be determined.

 

All Securities of any one series shall be substantially identical
except as to denomination and except as may otherwise be provided in or
pursuant to such Board Resolution or in any such indenture supplemental hereto.

 

25

 

SECTION 302.   Denominations.

 

The Securities of each series shall be issuable in registered form
without coupons in such denominations as shall be specified as contemplated by Section 301.
In the absence of any such provisions with respect to the Securities of any
series, the Securities of such series shall be issuable in denominations of
$1,000 and any integral multiple thereof.

 

SECTION 303.   Execution, Authentication,
Delivery and Dating.

 

The Securities shall be executed on behalf of the Company by its
Chairman of the Board, its President or one of its Vice Presidents, under its
corporate seal reproduced thereon attested by its Secretary or one of its
Assistant Secretaries. The signature of any of these officers on the Securities
may be manual or facsimile.

 

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

 

At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities of any series executed by
the Company to the Trustee for authentication, together with a Company Order for
the authentication and delivery of such Securities, and the Trustee in
accordance with the Company Order shall authenticate and deliver such
Securities. If the form or terms of the Securities of the series have been
established in or pursuant to one or more Board Resolutions as permitted by
Sections 201 and 301, in authenticating such Securities, and accepting the
additional responsibilities under this Indenture in respect of such Securities,
the Trustee shall be entitled to receive, and (subject to Section 601)
shall be fully protected in relying upon, an Opinion of Counsel stating,

 

(a) if the form of such Securities has
been established by or pursuant to a Board Resolution as permitted by Section 201,
that such form has been established in conformity with the provisions of the
Indenture;

 

(b) if the terms of such Securities have
been established by or pursuant to a Board Resolution as permitted by Section 301,
that such terms have been established in conformity with the provisions of this
Indenture; and

 

(c) that such Securities, when
authenticated and delivered by the Trustee and issued by the Company in the
manner and subject to any conditions specified in such Opinion of Counsel, will
constitute valid and

 

26

 

legally binding obligations of the Company, enforceable in accordance
with their terms, subject to bankruptcy, insolvency, reorganization and other
laws of general applicability relating to or affecting the enforcement of
creditors’ rights and to general equity principles.

 

If such form or terms have been so established, the Trustee shall not
be required to authenticate such Securities if the issue of such Securities
pursuant to this Indenture will affect the Trustee’s own rights, duties or
immunities under the Securities and this Indenture or otherwise in a manner
which is not reasonably acceptable to the Trustee.

 

Each Security shall be dated the date of its authentication.

 

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

 

SECTION 304.   Temporary Securities.

 

Pending the preparation of definitive Securities of any series, the
Company may execute, and upon Company Order the Trustee shall authenticate and
deliver, temporary Securities which are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities in lieu of which they
are issued and with such appropriate insertions, omissions, substitutions and
other variations as the officers executing such Securities may determine, as
evidenced by their execution of such Securities.

 

If temporary Securities of any series are issued, the Company will
cause definitive Securities of that series to be prepared without unreasonable
delay. After the preparation of definitive Securities of such series, the
temporary Securities of such series shall be exchangeable for definitive
Securities of such series upon surrender of the temporary Securities of such
series at the office or agency of the Company in a Place of Payment for that
series, without charge to the Holder. Upon surrender for cancellation of any
one or more temporary Securities of any series the Company shall execute and
the Trustee shall authenticate and deliver in exchange therefor a like
principal amount of definitive Securities of the same series of authorized
denominations. Until so exchanged the temporary Securities of any series shall
in all

 

27

 

respects be entitled to the same benefits under this Indenture as
definitive Securities of such series.

 

SECTION 305.       Registration, Registration of Transfer and Exchange.

 

The Company shall cause to be kept at the Corporate Trust Office of the
Trustee a register (the register maintained in such office being herein
referred to as the “Security Register”) in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide for the registration
of Securities and of transfers of Securities. The Trustee is hereby appointed “Security
Registrar” for the purpose of registering Securities and transfers of
Securities as herein provided.

 

Upon surrender for registration of transfer of any Security of any
series at the office or agency in a Place of Payment for that series, the
Company shall execute, and the Trustee shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Securities of
the same series, of any authorized denominations and of a like aggregate
principal amount.

 

At the option of the Holder, Securities of any series may be exchanged
for other Securities of the same series, of any other authorized denominations
and of a like aggregate principal amount, upon surrender of the Securities to
be exchanged at such office or agency. Whenever any Securities are so
surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange
is entitled to receive.

 

All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of the Company, evidencing the same
debt, and entitled to the same benefits under this Indenture, as the Securities
surrendered upon such registration of transfer or exchange.

 

Every Security presented or surrendered for registration of transfer or
for exchange shall (unless otherwise specified by the Company or the Trustee)
be duly endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by the
Holder thereof or his attorney duly authorized in writing.

 

No service charge shall be made for any registration of transfer or
exchange or Securities, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Securities, other than
exchanges pursuant to Section 304, 906 or 1107 not involving any transfer.

 

28

 

The Company shall not be required (i) to issue, register the
transfer of or exchange Securities of any series during a period beginning at
the opening of business 15 days before the day of the mailing of a notice of
redemption of Securities of that series selected for redemption under Section 1103
and ending at the close of business on the day of such mailing; or (ii) 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.

 

SECTION 306.       Mutilated, Destroyed, Lost and Stolen Securities.

 

If any mutilated Security is surrendered to the Trustee, the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new Security of the same series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.

 

If there shall be delivered to the Company and the Trustee (i) evidence
to their satisfaction of the destruction, loss or theft of any Security and (ii) such
security or indemnity as may be required by them to save each of them and any
agent of either of them harmless, then, in the absence of notice to the Company
or the Trustee that such Security has been acquired by a bonafide purchaser,
the Company shall execute and upon its request the Trustee shall authenticate
and deliver, in lieu of any such destroyed, lost or stolen Security, a new
Security of the same series and of like tenor and principal amount and bearing
a number not contemporaneously outstanding.

 

In case any such mutilated, destroyed, lost or stolen Security has
become or is about to become due and payable, the Company in its discretion
may, instead of issuing a new Security, pay such Security.

 

Upon the issuance of any new Security under this Section, the Company
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.

 

Every new Security of any series issued pursuant to this Section in
lieu of any destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, whether or not the destroyed,
lost or stolen Security shall be at any time enforceable by anyone, and shall
be entitled to all the benefits of this Indenture equally and proportionately
with any and all other Securities of that series duly issued hereunder.

 

The provisions of this Section are exclusive and shall preclude
(to the fullest extent permitted by law) all other rights and remedies with
respect to

 

29

 

the replacement or payment of mutilated, destroyed, lost or stolen
Securities.

 

SECTION 307.       Payment of Interest; Interest Rights Preserved.

 

Interest on any Security which is payable, and is punctually paid or
duly provided for, on any Interest Payment Date shall be paid to the Person in
whose name that Security (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest.

 

Any interest on any Security of any series which is payable, but is not
punctually paid or duly provided for, on any Interest Payment Date (herein
called “Defaulted Interest”) shall forthwith cease to be payable to the Holder
on the relevant Regular Record Date by virtue of having been such Holder, and
such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in Clause (1) or (2) below:

 

(1) The Company may elect to make
payment of any Defaulted Interest to the Persons in whose names the Securities
of such series (or their respective Predecessor Securities) are registered at
the close of business on a Special Record Date for the payment of such
Defaulted Interest, which shall be fixed in the following manner. The Company
shall notify the Trustee in writing of the amount of Defaulted Interest
proposed to be paid on each Security of such series and the date of the
proposed payment, and at the same time the Company shall deposit with the
Trustee and amount of money equal to the aggregate amount proposed to be paid
in respect of such Defaulted 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 Interest as in this Clause provided. Thereupon the
Trustee shall fix a Special Record Date for the payment of such Defaulted
Interest which shall be not more than 15 days and not less than 10 days prior
to the date of the proposed payment and not less than 10 days after the receipt
by the Trustee of the notice of the proposed payment. The Trustee shall
promptly notify the Company of such Special Record Date and, in the name and at
the expense of the Company, shall cause notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor to be mailed,
first-class postage prepaid, to each Holder of Securities of such series at his
address as it appears in the Security Register, not less than 10 days prior to
such Special Record Date. Notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor having been so mailed, such
Defaulted Interest shall be paid to the Persons in whose names the Securities
of such series

 

30

 

(or their respective Predecessor Securities) are registered at the
close of business on such Special Record Date and shall no longer be payable
pursuant to the following Clause (2).

 

(2) The Company may make payment of any
Defaulted Interest on the Securities of any series in any other lawful manner
not inconsistent with the requirements of any securities exchange on which such
Securities may be listed, and upon such notice as may be required by such
exchange, if after notice given by the Company to the Trustee of the proposed
payment pursuant to this Clause, such manner of payment shall be deemed
practicable by the Trustee.

 

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

 

SECTION 308.       Persons Deemed Owners.

 

Prior to due presentment of a 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 such Security is registered as the owner of such
Security for the purpose of receiving payment of principal of (and premium, if
any) and (subject to Section 307) interest (if any) on such Security and
for all other purposes whatsoever, whether or not such Security be overdue, and
neither the Company, the Trustee nor any agent of the Company or the Trustee
shall be affected by notice to the contrary.

 

SECTION 309.       Cancellation.

 

All Securities surrendered for payment, redemption, registration of
transfer or exchange or for credit against any sinking fund payment shall, if
surrendered to any Person other than the Trustee, be delivered to the Trustee
and shall be promptly cancelled by it. The Company may at any time deliver to
the Trustee for cancellation any Securities previously authenticated and
delivered hereunder which the Company may have acquired in any manner
whatsoever, and all Securities so delivered shall be promptly cancelled by the
Trustee. No Securities shall be authenticated in lieu of or in exchange for any
Securities cancelled as provided in this Section, except as expressly permitted
by this Indenture. Unless otherwise directed by a Company Order, the Trustee
shall destroy all cancelled Securities held by it and shall deliver a
certificate of such destruction to the Company.

 

31

 

SECTION 310.
Computation of Interest.

 

Except
as otherwise specified as contemplated by Section 301 for Securities of
any series, interest (if any) on the Securities of each series shall be
computed on the basis of a year of twelve 30-day months.

 

ARTICLE FOUR

 

SATISFACTION AND DISCHARGE

 

SECTION 401.
Satisfaction and Discharge of Indenture.

 

This
Indenture shall upon Company Request cease to be of further effect (except as
to any surviving rights of registration of transfer or exchange of Securities
or rights of replacement or substitution for mutilated, destroyed, lost or
stolen Securities herein expressly provided for), and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when

 

(1) 
either

 

(A)  all Securities theretofore authenticated
and delivered (other than (i) Securities which have been destroyed, lost
or stolen and which have been replaced or paid as provided in Section 306
and (ii) Securities for whose payment money has theretofore been deposited
in trust or segregated and held in trust by the Company and thereafter repaid
to the Company or discharged from such trust, as provided in Section 1003)
have been delivered to the Trustee for cancellation; or

 

(B)  all such Securities not theretofore
delivered to the Trustee for cancellation

 

(i)  have become due and payable, or

 

(ii)  will become due and payable at their
Stated Maturity within one year, or

 

(iii)  are to 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
Company;

 

and
the Company, in the case of (i), (ii) or (iii) above, has deposited
or caused to be deposited with the Trustee as trust funds in trust for the
purpose an amount sufficient to pay and discharge the entire indebtedness on
such Securities not theretofore delivered to the Trustee for cancellation, for
principal (and premium, if any) and interest (if any) to the date of such
deposit (in the case of Securities

 

32

 

which
have become due and payable) or to the Stated Maturity or Redemption Date, as
the case may be; or

 

(C) the indebtedness in respect of all
Securities of all series theretofore authenticated and delivered has been
discharged in accordance with Section 403;

 

(2) the Company has paid or caused to be paid
all other sums payable hereunder by the Company; and

 

(3) the Company has delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that all
conditions precedent herein provided for relating to the satisfaction and
discharge of this Indenture have been complied with.

 

Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 607, the obligations of the Trustee
to any Authenticating Agent under Section 614 and, if money shall have
been deposited with the Trustee pursuant to subclause (B) of clause (1) of
this Section or pursuant to Section 403, the obligations of the
Trustee under Section 402 and the last paragraph of Section 1003
shall survive.

 

SECTION 402.  Application of Trust
Money.

 

Subject
to the provisions of the last paragraph of Section 1003, all money deposited
with the Trustee pursuant to Section 401 or 403, or received by the
Trustee in respect of Government Obligations deposited with the Trustee
pursuant to Section 403, shall be held in trust and applied by it, in
accordance with the provisions of the Securities and this Indenture, to the
payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal (and premium, if any) and interest (if any)
for whose payment such money has been deposited with the Trustee.

 

SECTION 403.
Satisfaction, Discharge and Defeasance of
Securities of any Series.

 

If
this Section 403 is specified, as contemplated by Section 301, to be
applicable to Securities of any series, the Company shall be deemed to have
paid and discharged the entire indebtedness on all the Outstanding Securities
of any such series and the Trustee, at the expense of the Company, shall
execute proper instruments acknowledging satisfaction and discharge of such
indebtedness, when

 

(1) either

 

33

 

(A) with
respect to all Outstanding Securities of such series,

 

(i)  the Company has deposited or caused to be
deposited with the Trustee as trust funds in trust for the purpose an amount
sufficient to pay and discharge the entire indebtedness on all Outstanding
Securities of such series for principal (and premium, if any) and interest (if
any) to the Stated Maturity or any Redemption Date as contemplated by the
penultimate paragraph of this Section 403, as the case may be; or

 

(ii)  the Company has deposited or caused to be
deposited with the Trustee as obligations in trust for the purpose such amount
of Government Obligations as will, together with the income to accrue thereon
without consideration of any reinvestment thereof, be sufficient to pay and
discharge the entire indebtedness on all Outstanding Securities of such series
for principal (and premium, if any) and interest (if any) to the Stated
Maturity or any Redemption Date as contemplated by the penultimate paragraph of
this Section 403, as the case may be; or

 

(iii) the Company has deposited or caused to be
deposited with the Trustee such amount of trust funds pursuant to clause (i) above
and such amount of Government Obligations pursuant to clause (ii) above as
will (together with the income to accrue on such amount of Government
Obligations without consideration of any reinvestment thereof) be sufficient to
pay and discharge the entire indebtedness on all Outstanding Securities of such
series for principal (and premium, if any) and interest (if any) to the Stated
Maturity or any Redemption Date as contemplated by the penultimate paragraph of
this Section 403, as the case may be; or

 

(B)  the Company has properly fulfilled such
other means of satisfaction and discharge as is specified, as contemplated by Section 301,
to be applicable to the Securities of such series; and

 

(2) the
Company has paid or caused to be paid all other sums payable with respect to
the Outstanding Securities of such series; and

 

(3) 
the Company has delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent herein provided
for relating to the satisfaction and discharge of the entire indebtedness on
all Outstanding Securities of any such series have been complied with.

 

34

 

Any
deposits with the Trustee referred to in Section 403(1) (A) above
shall be irrevocable, shall be accompanied by written instructions to the
Trustee stating the date on which the entire indebtedness on all Outstanding
Securities of such series shall be paid (whether at Stated Maturity or any
Redemption Date) and shall be made under the terms of an escrow trust agreement
or indenture supplemental hereto in form and substance satisfactory to the
Trustee.  If any Outstanding Securities
of such series are to be redeemed prior to their Stated Maturity, whether
pursuant to any optional redemption provisions or in accordance with any
mandatory sinking fund requirement, the Company shall make such arrangements as
are satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Company.

 

Upon
the satisfaction of the conditions set forth in this Section 403 with
respect to all the Outstanding Securities of any series, the terms and
conditions of such series, including the terms and conditions with respect
thereto set forth in this Indenture, shall no longer be binding upon, or
applicable to, the Company, and the Company shall be discharged therefrom and
have no further legal obligation with respect thereto, provided the
Company shall not be discharged from any payment obligations in respect of Securities
of such series which are deemed not to be Outstanding under clause (iii) of
the definition thereof if such obligations continue to be valid obligations of
the Company under applicable law.

 

ARTICLE FIVE

 

REMEDIES

 

SECTION 501.
Events of Default.

 

“Event
of Default”, wherever used herein with respect to Securities of any series,
means the occurrence and continuation of any one of the following events:

 

(1) default in the payment of any interest upon
any Security of that series when it becomes due and payable, and continuance of
such default for a period of 30 days; or

 

(2) default in the payment of the principal of
(or premium, if any, on) any Security of that series at its Maturity; or

 

(3) default in the deposit of any sinking fund
payment, when and as due by the terms of a Security of that series; or

 

(4)  default in the performance, or breach, of
any covenant or warranty of the Company in this Indenture (other than a
covenant or

 

35

 

warranty
a default in whose performance or whose breach is elsewhere in this Section specifically
dealt with or which has expressly been included in this Indenture solely for
the benefit of series of Securities other than that series), and continuance of
such default or breach for a period of 60 days after there has been given, by
registered or certified mail, to the Company by the Trustee or to the Company
and the Trustee by the Holders of at least 25% in principal amount of the
Outstanding Securities of that series a written notice specifying such default
or breach and requiring it to be remedied and stating that such notice is a “Notice
of Default” hereunder; or

 

(5)           a default or
defaults under any bond, debenture, note or other evidence of indebtedness for
money borrowed by the Company (including a default with respect to Securities
of any series other than that series) or under any mortgage, indenture or
instrument under which there may be issued or by which there may be secured or
evidenced any indebtedness for money borrowed by the Company (including this
Indenture), whether such indebtedness now exists or shall hereafter be created,
which default or defaults shall in the aggregate have resulted at any one time
in more than $5,000,000 principal amount of such indebtedness becoming or being
declared due and payable prior to the date on which it would otherwise have
become due and payable, without such acceleration or accelerations having been
rescinded or annulled within a period of 10 days after there shall have been given,
by registered or certified mail, to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 25% in principal amount of
the Outstanding Securities of that series, a written notice specifying such
default or defaults and requiring the Company to cause such acceleration or
accelerations to be rescinded or annulled and stating that such notice is a “Notice
of Default” hereunder; or

 

(6)           the entry by a court
having jurisdiction in the premises of (A) a decree or order for relief in
respect of the Company in an involuntary case or proceeding under any
applicable Federal or State bankruptcy, insolvency, reorganization or other
similar law or (B) a decree or order adjudging the Company a bankrupt or
insolvent, or approving as properly filed a petition seeking reorganization,
arrangement, adjustment or composition of or in respect of the Company under
any applicable Federal or State law, or appointing a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official of the
Company or of any substantial part of its property, or ordering the winding up
or liquidation of its affairs, and the continuance of any such decree or order

 

36

 

for
relief or any such other decree or order unstayed and in effect for a period of
90 consecutive days; or

 

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

 

(8)           any other Event of
Default provided with respect to Securities of that series.

 

SECTION 502.
Acceleration of Maturity; Rescission and Annulment.

 

If an Event of Default with
respect to Securities of any series at the time Outstanding occurs and is
continuing, then in every such case the Trustee or the Holders of not less than
25% in principal amount of the Outstanding Securities of that series may
declare the principal amount (or, if the Securities of that series are Original
Issue Discount Securities, such portion of the principal amount as may be
specified in the terms of that series) of all of the Securities of that series
to be due and payable immediately, by a notice in writing to the Company (and
to the Trustee if given by Holders), and upon any such declaration such
principal amount (or specified amount) shall become immediately due and
payable.

 

At any time after such a
declaration of acceleration with respect to Securities of any series has been
made and before a judgment or decree for payment of the money due has been
obtained by the Trustee as hereinafter in this Article provided, the
Holders of a majority in principal amount of the Outstanding Securities of that
series, by written notice to the Company and the Trustee, may rescind and annul
such declaration and its consequences if

 

37

 

(1)           the Company has paid
or deposited with the Trustee a sum sufficient to pay

 

(A)          all
overdue interest on all Securities of that series,

 

(B)           the
principal of (and premium, if any, on) any Securities of that series which have
become due otherwise than by such declaration of acceleration and interest (if
any) thereon at the rate or rates prescribed therefor in such Securities,

 

(C)           to
the extent that payment of such interest is lawful, interest upon overdue
interest at the rate or rates prescribed therefor in such Securities, and

 

(D)          all
sums paid or advanced by the Trustee hereunder and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel;

 

and

 

(2)           all Events of
Default with respect to Securities of that series, other than the non-payment
of the principal of Securities of that series which have become due solely by
such declaration of acceleration, have been cured or waived as provided in Section 513.

 

No
such rescission shall affect any subsequent default or impair any right
consequent thereon.

 

SECTION 503. Collection
of Indebtedness and Suits for Enforcement by Trustee.

 

The Company covenants that
if

 

(1)           default is made in
the payment of any interest on any Security when such interest becomes due and
payable and such default continues for a period of 30 days, or

 

(2)           default is made in
the payment of the principal of (or premium, if any, on) any Security at the
Maturity thereof,

 

the
Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities, the whole amount then due and payable on such
Securities for principal (and premium, if any) and interest (if any) and, to
the extent that payment of such interest shall be legally enforceable, interest
on any overdue principal (and premium, if any) and on any overdue interest, at
the rate or rates prescribed therefor in such Securities, and, in addition
thereto, 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.

 

38

 

If the Company fails to pay
such amounts forthwith upon such demand, the Trustee, in its own name and as
trustee of an express trust, may institute a judicial proceeding for the
collection of the sums so due and unpaid, may prosecute such proceeding to
judgment or final decree and may enforce the same against the Company or any
other obligor upon such Securities and collect the moneys adjudged or decreed
to be payable in the manner provided by law out of the property of the Company
or any other obligor upon such Securities, wherever situated.

 

If an Event of Default with
respect to Securities of any series occurs and is continuing, the Trustee may
in its discretion proceed to protect and enforce its rights and the rights of
the Holders of Securities of such series by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any
such rights, whether for the specific enforcement of any covenant or agreement
in this Indenture or in aid of the exercise of any power granted herein, or to
enforce any other proper remedy.

 

SECTION 504.
Trustee May File Proofs of Claim.

 

In case of the pendency of
any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to
the Company or any other obligor upon the Securities or the property of the
Company or of such other obligor or their creditors, the Trustee (irrespective
of whether the principal of the Securities shall then be due and payable as
therein expressed or by declaration or otherwise and irrespective of whether
the Trustee shall have made any demand on the Company for the payment of
overdue principal or interest) shall be entitled and empowered, by intervention
in such proceeding or otherwise,

 

(i)            to file and prove a
claim for the whole amount of principal (and premium, if any) and interest
owing and unpaid in respect of the Securities (or, if the Securities are
Original Issue Discount Securities, such portion of the principal amount as may
be specified in the terms of such Securities) and to file such 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 of the
Holders allowed in such judicial proceeding, and

 

(ii)           to collect and
receive any moneys or other property payable or deliverable on any such claims
and to distribute the same;

 

and
any custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by

 

39

 

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 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 607.

 

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 Securities or the rights of any Holder
thereof or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding.

 

SECTION 505.       Trustee May Enforce
Claims Without Possession of Securities.

 

All rights of action and
claims under this Indenture or the Securities may be prosecuted and enforced by
the Trustee to the fullest extent permitted by law without the possession of
any of the Securities or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment
shall, after provision for the payment of the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, be
for the ratable benefit of the Holders of the Securities in respect of which
such judgment has been recovered.

 

SECTION 506.       Application of Money
Collected.

 

Any money collected by
the Trustee pursuant to this Article with respect to Securities of any
series shall be applied in the following order, at the date or dates fixed by
the Trustee and, in case of the distribution of such money on account of
principal (or premium, if any) or interest (if any), upon presentation of the
Securities of such series and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid:

 

FIRST:    To the
payment of all amounts due the Trustee under Section 607;

 

SECOND:    To the payment of the amounts then due and
unpaid for principal of (and premium, if any) and interest (if any) on the
Securities in respect of which or for the benefit of which such money has been
collected, ratably, without preference or priority of any kind, according to
the amounts due and payable on such Securities for principal (and premium, if
any) and interest (if any), respectively; and

 

40

 

THIRD: To
the payment of the remainder, if any, to the Company, its successors or
assigns, or to whomsoever may be lawfully entitled to receive the same, or as a
court of competent jurisdiction may direct.

 

SECTION 507.       Limitation on Suits.

 

No Holder of any Security
of any series shall have any right to institute any proceeding, judicial or
otherwise, with respect to this Indenture, or for the appointment of a receiver
or trustee, or for any other remedy hereunder, unless

 

(1) such
Holder has
previously given written notice to the Trustee of a continuing Event of Default
with respect to the Securities of that series;

 

(2) the
Holders of not less than 25% in principal amount of the Outstanding Securities
of that series shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default in its own name as Trustee
hereunder;

 

(3) such
Holder or Holders have offered to the Trustee such reasonable indemnity as it
may require against the costs, expenses and liabilities to be incurred in
compliance with such request;

 

(4) the
Trustee for 60 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and

 

(5) no
direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in principal amount of
the Outstanding Securities of that series;

it being understood and
intended that no one or more of such Holders shall have any right in any manner
whatever by virtue of, or by availing of, any provision of this Indenture to
affect, disturb or prejudice the rights of any other of such Holders, or to
obtain or to seek to obtain priority or preference over any other of such
Holders or to enforce any right under this Indenture, except in the manner
herein provided and for the equal and ratable benefit of all of such Holders.

 

SECTION 508.       Unconditional Right of
Holders to Receive Principal, Premium and Interest.

 

Notwithstanding any other
provision in this Indenture, the Holder of any Security shall have the right,
which is absolute and unconditional, to receive payment of the principal of
(and premium, if any) and (subject to Section 307) interest (if any) on
such Security on the Stated Maturity or Maturities expressed in such Security
(or, in the case of redemption, on the Redemption Date) and to institute suit
for the enforcement of any such

 

41

 

payment,
and such rights shall not be impaired without the consent of such Holder.

 

SECTION
509.       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
proceeding, the Company, the Trustee and the Holders shall be restored
severally and respectively to their former positions hereunder and thereafter
all rights and remedies of the Company, the Trustee and the Holders shall
continue as though no such proceeding had been instituted.

 

SECTION
510.       Rights and
Remedies Cumulative.

 

Except
as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 306, 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
511.       Delay or
Omission Not Waiver.

 

No
delay or omission of the Trustee or of any Holder of any Securities 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
512.       Control by
Holders.

 

The
Holders of a majority in principal amount of the Outstanding Securities of any
series shall have the right to direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee, or exercising any trust
or power conferred on the Trustee, with respect to the Securities of such
series, provided that

 

42

 

(1)
such direction shall not be in conflict with any rule of law or with this
Indenture, and

 

(2)
the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

 

SECTION
513.       Waiver of Past Defaults.

 

The
Holders of not less than a majority in principal amount of the Outstanding
Securities of any series may on behalf of the Holders of all the Securities of
such series waive any past default hereunder with respect to such series and
its consequences, except a default

 

(1)
in the payment of the principal of (or premium, if any) or interest (if any) on
any Security of such series, or

 

(2)
in respect of a covenant or provision hereof which under Article Nine cannot be
modified or amended without the consent of the Holder of each Outstanding
Security of such series affected.

 

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
514.       Undertaking for Costs.

 

All
parties to this Indenture agree, and each Holder of any Security by his
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may
in its discretion assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in such suit, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to any suit instituted by the
Company, to any suit instituted by the Trustee, to any suit instituted by any
Holder, or group of Holders, holding in the aggregate more than 10% in
principal amount of the Outstanding Securities of any series, or to any suit
instituted by any Holder for the enforcement of the payment of the principal of
(or premium, if any) or interest (if any) on any Security on or after the
Stated Maturity or Maturities expressed in such Security (or, in the case of
redemption, on or after the Redemption Date).

 

43

 

SECTION 515. Waiver of
Stay or Extension Laws.

 

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

 

ARTICLE SIX

 

THE TRUSTEE

 

SECTION 601. Certain
Duties and Responsibilities.

 

(a)
Except during the continuance of an Event of Default,

 

(1) the Trustee undertakes to perform such duties
and only such duties as are specifically set forth in this Indenture, and no
implied covenants or obligations shall be read into this Indenture against the
Trustee; and

 

(2) 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; but in the case of any such certificates or
opinions which by any provision hereof are specifically required to be
furnished to the Trustee, the Trustee shall be under a duty to examine the same
to determine whether or not they conform to the requirements of this Indenture.

 

(b)
In case 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 their exercise, as a prudent man would
exercise or use under the circumstances in the conduct of his own affairs.

 

(c)
No provision of this Indenture shall be construed to relieve the Trustee from
liability for its own negligent action, its own negligent failure to act, or
its own wilful misconduct, except that

 

(1) this Subsection shall not be construed to limit
the effect of Subsection (a) of this Section;

 

44

 

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

 

(3) the Trustee shall not be liable with respect to
any action taken or omitted to be taken by it in good faith in accordance with
the direction of the Holders of a majority in principal amount of the
Outstanding Securities of any series, determined as provided in
Section 512, relating to the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred upon the Trustee, under this Indenture with respect to the
Securities of such series; and

 

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

 

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

 

SECTION 602.        Notice of Defaults.

 

Within
90 days after the occurrence of any default hereunder with respect to the
Securities of any series, the Trustee shall transmit by mail to all Holders of
Securities of such series, as their names and addresses appear in the Security
Register, notice of such default hereunder known to the Trustee, unless such
default shall have been cured or waived; provided, however, that, except in the case of a default in the
payment of the principal of (or premium, if any) or interest (if any) on any
Security of such series or in the payment of any sinking fund installment with
respect to Securities of such series, the Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive
committee or a trust committee of directors or Responsible Officers of the
Trustee in good faith determine that the withholding of such notice is in the
interest of the Holders of Securities of such series; and provided,
further, that in the case of any default of the character specified
in Section 501(4) with respect to Securities of such series, no such notice to
Holders shall be given until at least 60 days after the occurrence thereof. For
the purpose of this Section, the term “default” means the occurrence and
continuation of any event

 

45

 

which is, or after notice or lapse of time or both would become, an
Event of Default with respect to Securities of such series.

 

SECTION 603. Certain
Rights of Trustee.

 

Subject
to the provisions of Section 601:

 

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

 

(b)
any request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order and any resolution of the Board
of Directors may be sufficiently evidenced by a Board Resolution;

 

(c)
whenever in the administration of this Indenture the Trustee shall deem it
desirable that a matter be proved or established prior to taking, suffering or
omitting any action hereunder, the Trustee (unless other evidence be herein
specifically prescribed) may, in the absence of bad faith on its part, rely
upon an Officers’ Certificate;

 

(d)
the Trustee may consult with counsel and the written advice of such counsel or
any Opinion of Counsel shall be full and complete authorization and protection
in respect of any action taken, suffered or omitted by it hereunder in good
faith and in reliance thereon;

 

(e)
the Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Indenture at the request or direction of any of the
Holders pursuant to this Indenture, unless such Holders shall have offered to
the Trustee such reasonable security or indemnity as it may require against the
costs, expenses and liabilities which might be incurred by it in compliance
with such request or direction;

 

(f)
the Trustee shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note,
other evidence of indebtedness or other paper or 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 Company, personally or by agent or attorney; and

 

46

 

 (g) the Trustee may execute any of the trusts
or powers hereunder or perform any duties hereunder either directly or by or
through agents or attorneys and the Trustee shall not be responsible for any
misconduct or negligence on the part of any agent or attorney appointed with
due care by it hereunder.

 

SECTION 604. Not
Responsible for Recitals of Issuance of Securities.

 

The
recitals contained herein and in the Securities, except the Trustee’s
certificates of authentication, shall be taken as the statements of the
Company, and the Trustee or any Authenticating Agent assume no responsibility
for their correctness. The Trustee makes no representations as to the validity
or sufficiency of this Indenture or of the Securities, except the validity and
sufficiency of the Trustee’s certificates of authentication. The Trustee or any
Authenticating Agent shall not be accountable for the use or application by the
Company of Securities or the proceeds thereof.

 

SECTION 605. May Hold
Securities.

 

The
Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or
any other agent of the Company, in its individual or any other capacity, may
become the owner or pledgee or Securities and, subject to Sections 608 and 613,
may otherwise deal with the Company with the same rights it would have if it
were not Trustee, Authenticating Agent, Paying Agent, Security Registrar or
such other agent.

 

SECTION 606. Money Held
in Trust.

 

Money
held by the Trustee in trust hereunder need not be segregated from other funds
except to the extent required by law. The Trustee shall be under no liability
for interest on any money received by it hereunder except as otherwise agreed
with the Company.

 

SECTION 607. Compensation
and Reimbursement.

 

The
Company agrees:

 

(1) to pay to the Trustee from time to time
reasonable compensation for all services rendered by it hereunder (which
compensation shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust);

 

(2) except as otherwise expressly provided herein,
to reimburse the Trustee upon its request for all reasonable expenses, disbursements
and advances incurred or made by the Trustee in accordance with any provision
of this Indenture (including the reasonable compensation and the expenses and
disbursements of its agents and counsel), except any such

 

47

 

expense, disbursement or advance as may be attributable to its
negligence or bad faith; and

 

(3) to indemnify the Trustee for, and to hold
it harmless against, any loss, liability or expense incurred without negligence
or bad faith on its part, arising out of or in connection with the acceptance
or administration of the trust or trusts hereunder, including the costs and
expenses of defending itself against any claim or liability in connection with
the exercise or performance of any of its powers or duties hereunder except any
liability incurred with negligence or bad faith on the part of the Trustee.

 

SECTION 608.       Disqualification;
Conflicting Interests.

 

(a)  If the Trustee has or shall
acquire any conflicting interest, as defined in this Section, with respect to
the Securities of any series, it shall, within 90 days after ascertaining that
it has such conflicting interest, either eliminate such conflicting interest or
resign with respect to the Securities of that series in the manner and with the
effect hereinafter specified in this Article.

 

(b)  In the event that the
Trustee shall fail to comply with the provisions of Subsection (a) of this
Section with respect to the Securities of any series, the Trustee shall, within
10 days after the expiration of such 90-day period, transmit by mail to all
Holders of Securities of that series, as their names and addresses appear in
the Security Register, notice of such failure.

 

(c)  For the purposes of this
Section, the Trustee shall be deemed to have a conflicting interest with
respect to the Outstanding Securities of any series if

 

(1) 
the Trustee is trustee under this Indenture with respect to the
Outstanding Securities of any series other than that series or is trustee under
another indenture under which any other securities, or certificates of interest
or participation in any other securities, of the Company are outstanding,
unless such other indenture is a collateral trust indenture under which the
only collateral consists of Securities of that series issued under this
Indenture, provided that there shall be excluded
from the operation of this paragraph this Indenture with respect to the
Securities of any series other than that series and the Indenture dated as of
June 15, 1971 between Equitable Gas Company and Pittsburgh National Bank
pursuant to which the Company has issued its 9% Debentures Due June 15, 1996
(the “1971 Indenture”) and any other indenture or indentures under which other
securities, or certificates of interest or participation in other securities,
of the Company are outstanding, if

 

48

 

 (i)  this Indenture with respect to such other
series, the 1971 Indenture and such other indenture or indentures are wholly
unsecured and such other indenture or indentures are hereafter qualified under
the Trust Indenture Act (the 1971 Indenture having so qualified), unless the
Commission shall have found and declared by order pursuant to Section 305(b) or
Section 307(c) of the Trust Indenture Act that differences exist between the
provisions of this Indenture with respect to Securities of that series and one
or more other series or the provisions of the 1971 Indenture or such other
indenture or indentures which are so likely to involve a material conflict of
interest as to make it necessary in the public interest or for the protection
of investors to disqualify the Trustee from acting as such under this Indenture
with respect to the Securities of that series and such other series or under
the 1971 Indenture or such other indenture or indentures, or

 

(ii) 
the Company shall have sustained the burden of proving, on application
to the Commission and after opportunity for hearing thereon, that trusteeship
under this Indenture with respect to the Securities of that series and such
other series or the 1971 Indenture or such other indenture or indentures is not
so likely to involve a material conflict of interest as to make it necessary in
the public interest or for the protection of investors to disqualify the
Trustee from acting as such under this Indenture with respect to the Securities
of that series and such other series or under the 1971 Indenture or such other
indenture or indentures;

 

(2)  the Trustee or any of its
directors or executive officers is an obligor upon the Securities of that
series or an underwriter for the Company;

 

(3)  the Trustee directly or
indirectly controls or is directly or indirectly controlled by or is under
direct or indirect common control with the Company or an underwriter for the
Company;

 

(4)  the Trustee or any of its
directors or executive officers is a director, officer, partner, employee,
appointee or representative of the Company, or of an underwriter (other than
the Trustee itself) for the Company who is currently engaged in the business of
underwriting, except that (i) one individual may be a director or an executive
officer, or both, of the Trustee and a director or an executive officer, or
both, of the Company but may not be at the same time an executive officer of both
the Trustee and the Company; (ii) if and so long as the number of directors of
the Trustee in office is more than nine, one additional

 

49

 

individual may be a director or an executive officer, or both, of the
Trustee and a director of the Company; and (iii) the Trustee may be designated
by the Company or by any underwriter for the Company to act in the capacity of
transfer agent, registrar, custodian, paying agent, fiscal agent, escrow agent
or depositary, or in any other similar capacity, or, subject to the provisions
of paragraph (1) of this Subsection, to act as trustee, whether under an
indenture or otherwise;

 

(5)  10% or more of the voting
securities of the Trustee is beneficially owned either by the Company or by any
director, partner or executive officer thereof, or 20% or more of such voting
securities is beneficially owned, collectively, by any two or more of such
persons; or 10% or more of the voting securities of the Trustee is beneficially
owned either by an underwriter for the Company or by any director, partner or
executive officer thereof, or is beneficially owned, collectively, by any two
or more such persons;

 

(6)  the Trustee is the
beneficial owner of, or holds as collateral security for an obligation which is
in default (as hereinafter in this Subsection defined), (i) 5% or more of the
voting securities, or 10% or more of any other class of security, of the
Company not including the Securities issued under this Indenture of one or more
series for which the Trustee is the Trustee and securities issued under any
other indenture under which the Trustee is also trustee, or (ii) 10% or more of
any class of security of an underwriter for the Company;

 

(7)  the Trustee is the
beneficial owner of, or holds as collateral security for an obligation which is
in default (as hereinafter in this Subsection defined), 5% or more of the
voting securities of any person who, to the knowledge of the Trustee, owns 10%
or more of the voting securities of, or controls directly or indirectly or is
under direct or indirect common control with, the Company;

 

(8)  the Trustee is the
beneficial owner of, or holds as collateral security for an obligation which is
in default (as hereinafter in this Subsection defined), 10% or more of any
class of security of any person who, to the knowledge of the Trustee, owns 50%
or more of the voting securities of the Company; or

 

(9)  the Trustee owns, on May 15
in any calendar year, in the capacity of executor, administrator, testamentary
or inter vivos trustee, guardian, committee or conservator, or in any other
similar capacity, an aggregate of 25% or more of the voting securities, or of
any class of security, of any person, the beneficial ownership of a specified
percentage of which would have constituted a conflicting interest under 

 

50

 

paragraph (6), (7) or (8) of this Subsection.  As to any such securities of which the
Trustee acquired ownership through becoming executor, administrator or
testamentary trustee of an estate which included them, the provisions of the
preceding sentence shall not apply, for a period of two years from the date of
such acquisition, to the extent that such securities included in such estate do
not exceed 25% of such voting securities or 25% of any such class of
security.  Promptly after May 15 in each
calendar year, the Trustee shall make a check of its holdings of such
securities in any of the above-mentioned capacities as of such May 15.  If the Company fails to make payment in full
of the principal of (or premium, if any) or interest (if any) on any of the
Securities when and as the same becomes due and payable, and such failure
continues for 30 days thereafter, the Trustee shall make a prompt check of its
holdings of such securities in any of the above-mentioned capacities as of the
date of the expiration of such 30-day period, and after such date,
notwithstanding the foregoing provisions of this paragraph, all such securities
so held by the Trustee, with sole or joint control over such securities vested
in it, shall, but only so long as such failure shall continue, be considered as
though beneficially owned by the Trustee for the purposes of paragraphs (6),
(7) and (8) of this Subsection.

 

The specification of percentages in paragraphs (5) to (9), inclusive,
of this Subsection shall not be construed as indicating that the ownership of
such percentages of the securities of a person is or is not necessary or
sufficient to constitute direct or indirect control for the purposes of
paragraph (3) or (7) of this Subsection.

 

For the purposes of paragraphs (6), (7), (8) and (9) of this Subsection
only, (i) the terms “security” and “securities” shall include only such
securities as are generally known as corporate securities, but shall not
include any note or other evidence of indebtedness issued to evidence an
obligation to repay moneys lent to a person by one or more banks, trust
companies or banking firms, or any certificate of interest or participation in
any such note or evidence of indebtedness; (ii) an obligation shall be deemed
to be “in default” when a default in payment of principal shall have continued
for 30 days or more and shall not have been cured; and (iii) the Trustee shall
not be deemed to be the owner or holder of (A) any security which it holds as
collateral security, as trustee or otherwise, for an obligation which is not in
default as defined in clause (ii) above, or (B) any security which it
holds as collateral security under this Indenture, irrespective of any default
hereunder, or (C) any security which it holds as agent for collection, or as

 

51

 

custodian, escrow agent or
depositary, or in any similar representative capacity.

 

(d)  For
the purposes of this Section:

 

(1)  The term “underwriter”, when used with reference to the
Company, means every person who, within three years prior to the time as of
which the determination is made, has purchased from the Company with a view to,
or has offered or sold for the Company in connection with, the distribution of
any security of the Company outstanding at such time, or has participated or
has had a direct or indirect participation in any such undertaking, or has
participated or has had a participation in the direct or indirect underwriting
of any such undertaking, but such term shall not include a person whose
interest was limited to a commission from an underwriter or dealer not in
excess of the usual and customary distributors’ or sellers’ commission.

 

(2)  The term “director” means any director of a corporation
or any individual performing similar functions with respect to any
organization, whether incorporated or unincorporated.

 

(3)  The term “person” means an individual, a corporation, a
partnership, an association, a joint-stock company, a trust, an unincorporated
organization or a government or political subdivision thereof. As used in this
paragraph, the term “trust” shall include only a trust where the interest or
interests of the beneficiary or beneficiaries are evidenced by a security.

 

(4)  The term “voting security” means any security presently
entitling the owner or holder thereof to vote in the direction or management of
the affairs of a person, or any security issued under or pursuant to any trust,
agreement or arrangement whereby a trustee or trustees or agent or agents for
the owner or holder of such security are presently entitled to vote in the
direction or management of the affairs of a person.

 

(5)  The term “Company” means any obligor upon the
Securities.

 

(6)  The term “executive officer” means the president, every
vice president, every trust officer, the cashier, the secretary and the
treasurer of a corporation, and any individual customarily performing similar
functions with respect to any organization whether incorporated or
unincorporated, but shall not include the chairman of the board of directors.

 

(e)  The percentages of voting securities
and other securities specified in this Section shall be calculated in
accordance with the following provisions:

 

52

 

(1)  A specified percentage of the
voting securities of the Trustee, the Company or any other person referred to
in this Section (each of whom is referred to as a “person” in this paragraph)
means such amount of the outstanding voting securities of such person as
entitles the holder or holders thereof to cast such specified percentage of the
aggregate votes which the holders of all the outstanding voting securities of
such person are entitled to cast in the direction or management of the affairs
of such person.

 

(2)  A
specified percentage of a class of securities of a person means such percentage
of the aggregate amount of securities of the class outstanding.

 

(3)  The
term “amount”, when used in regard to securities, means the principal amount if
relating to evidences of indebtedness, the number of shares if relating to
capital shares and the number of units if relating to any other kind of
security.

 

(4)  The
term “outstanding” means issued and not held by or for the account of the
issuer. The following securities shall not be deemed outstanding within the
meaning of this definition:

 

(i)  securities of an issuer held in a sinking fund relating
to securities of the issuer of the same class;

 

(ii)  securities of an issuer held in a sinking fund relating
to another class of securities of the issuer, if the obligation evidenced by
such other class of securities is not in default as to principal or interest or
otherwise;

 

(iii)  securities pledged by the issuer thereof as security
for an obligation of the issuer not in default as to principal or interest or
otherwise; and

 

(iv)  securities held in escrow if placed in escrow by the
issuer thereof;

 

provided,
however, that any voting securities of an issuer shall
be deemed outstanding if any person other than the issuer is entitled to
exercise the voting rights thereof.

 

(5)  A
security shall be deemed to be of the same class as another security if both
securities confer upon the holder or holders thereof substantially the same
rights and privileges; provided, however,
that, in the case of secured evidences of indebtedness, all of which are issued
under a single indenture, differences in the interest rates or maturity dates
of various series thereof shall not be deemed sufficient to constitute such
series different classes and provided, further,
that, in the case

 

53

 

of unsecured
evidences of indebtedness, differences in the interest rates or maturity dates
thereof shall not be deemed sufficient to constitute them securities of
different classes, whether or not they are issued under a single indenture.

 

SECTION 609.               Corporate Trustee Required; Eligibility.

 

There shall at
all times be a Trustee hereunder which shall be a corporation organized and
doing business under the laws of the United States of America, any State
thereof or the District of Columbia, authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of at least
$50,000,000 and subject to supervision or examination by Federal or State
authority. If such corporation publishes reports of condition at least
annually, pursuant to law or to the requirements of said supervising or
examining authority, then for the purposes of this Section, the combined
capital and surplus of such corporation shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published. If at any time the Trustee shall cease to be eligible in accordance
with the provisions of this Section, it shall resign immediately in the manner
and with the effect hereinafter specified in this Article.

 

SECTION 610.               Resignation and Removal; Appointment of Successor.

 

(a)                             No
resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee in accordance with the applicable
requirements of Section 611.

 

(b)                            The
Trustee may resign at any time with respect to the Securities of one or more
series by giving written notice thereof to the Company and all Holders of
Securities of such series as their names and addresses appear on the Security
Register. If the instrument of acceptance by a successor Trustee required by
Section 611 shall not have been delivered to the Trustee within 30 days after
the giving of such notice of resignation, the resigning Trustee may petition
any court of competent jurisdiction for the appointment of a successor Trustee
with respect to the Securities of such series.

 

(c)                             The
Trustee may be removed at any time with respect to the Securities of any series
by Act of the Holders of a majority in principal amount of the Outstanding
Securities of such series, delivered to the Trustee and to the Company.

 

(d)                            If
at any time:

 

54

 

(1)                                  the Trustee shall
fail to comply with Section 608(a) after written request therefor by the
Company or by any Holder who has been a bona fide Holder of a Security of any
series for at least six months, or

 

(2)                                  the Trustee shall
cease to be eligible under Section 609 and shall fail to resign after written
request therefor by the Company or by any such Holder, or

 

(3)                                  The Trustee shall
become incapable of acting or shall be adjudged a bankrupt or insolvent or a
receiver of the Trustee or of its property shall be appointed or any public
officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation,

 

then, in any such case, (i) the
Company by a Board Resolution may remove the Trustee with respect to all
Securities, or (ii) subject to Section 514, any Holder who has been a bona fide
Holder of a Security of such series for at least six months may, on behalf of
himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee with respect to all Securities of
such series and the appointment of a successor Trustee or Trustees.

 

(e)                             If
the Trustee shall resign, be removed or become incapable of acting, or if a
vacancy shall occur in the office of Trustee for any cause, with respect to the
Securities of one or more series, the Company, by a Board Resolution, shall
promptly appoint a successor Trustee or Trustees with respect to the Securities
of that or those series (it being understood that any such successor Trustee may
be appointed with respect to the Securities of one or more or all of such
series and that at any time there shall be only one Trustee with respect to the
Securities of any particular series) and shall comply with the applicable
requirements of Section 611. If no successor Trustee with respect to the
Securities of any series shall have been so appointed by the Company and
accepted appointment in the manner required by Section 611, any Holder who has
been a bona fide Holder of a Security of such series for at least six months
may, on behalf of himself and all others similarly situated, petition any court
of competent jurisdiction for the appointment of a successor Trustee with
respect to the Securities of such series.

 

(f)               
The Company shall give notice of
each appointment of a successor Trustee with respect to the Securities of any
series by mailing written notice of such event by first-class mail, postage
prepaid, to all Holders of Securities of such series as their names and
addresses appear in the Security Register. Each notice shall include the name
of the successor Trustee with respect to

 

55

 

the Securities
of such series and the address of its Corporate Trust Office. If the Company
fails to mail such notice within 10 days after acceptance of appointment by the
successor Trustee, the successor Trustee shall cause such notice to be mailed
at the expense of the Company.

 

SECTION 611.               Acceptance of Appointment by Successor.

 

(a)  In
case of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee so appointed shall execute,
acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on the request
of the Company or the successor Trustee, such retiring Trustee shall, upon
payment of its charges, execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of the retiring Trustee and
shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder.

 

(b)  In
case of the appointment hereunder of a successor Trustee with respect to the
Securities of one or more (but not all) series the Company, the retiring Trustee
and each successor Trustee with respect to the Securities of such one or more
series shall execute and deliver an indenture supplemental hereto wherein each
successor Trustee shall accept such appointment and which (1) shall contain
such provisions as shall be necessary or desirable to transfer and confirm to,
and to vest in, each successor Trustee all the rights, powers, trusts and
duties of the retiring Trustee with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates, (2) if the
retiring Trustee is not retiring with respect to all Securities, shall contain
such provisions as shall be deemed necessary or desirable to confirm that all
the rights, powers, trusts and duties of the retiring Trustee with respect to
the Securities of that or those series as to which the retiring Trustee is not
retiring shall continue to be vested in the retiring Trustee, and (3) shall add
to or change any of the provisions of this Indenture as shall be necessary to
provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Trustees co-trustees of the same
trust and that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee; and upon the execution and delivery of such supplemental
indenture the resignation or

 

56

 

removal of the retiring Trustee
shall become effective to the extent provided therein and each such successor
Trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor Trustee relates; but, on request of the
Company or any successor Trustee, such retiring Trustee shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates.

 

(c)  Upon
request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such
successor Trustee all such rights, powers and trusts referred to in Subsection
(a) or (b) of this Section, as the case may be.

 

(d)  No
successor Trustee shall accept its appointment unless at the time of such
acceptance such successor Trustee shall be qualified and eligible under this
Article.

 

SECTION 612.               Merger, Conversion, Consolidation or Succession to Business.

 

Any
corporation into which the Trustee may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion
or consolidation to which the Trustee shall be a party, or any corporation
succeeding to all or substantially all the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto. In case any Securities shall have been
authenticated, but not delivered, by the Trustee then in office, any successor
by merger, conversion or consolidation to such authenticating Trustee may adopt
such authentication and deliver the Securities so authenticated with the same
effect as if such successor Trustee had itself authenticated such Securities.

 

SECTION
613.               Preferential
Collection of Claims Against Company.

 

(a)  Subject
to Subsection (b) of this Section, if the Trustee shall be or shall become a
creditor, directly or indirectly, secured or unsecured, of the Company within
four months prior to a default, as defined in Subsection (c) of this Section,
or subsequent to such a default, then, unless and until such default shall be
cured, the Trustee shall set apart and hold in a special account for the
benefit of the Trustee individually, the Holders of the Securities

 

57

 

and the holders of other
indenture securities, as defined in Subsection (c) of this Section:

 

(1)  an amount equal to any and all reductions in the amount
due and owing upon any claim as such creditor in respect of principal or
interest, effected after the beginning of such four months’ period and valid as
against the Company and its other creditors, except any such reduction
resulting from the receipt or disposition of any property described in
paragraph (2) of this Subsection, or from the exercise of any right of set-off
which the Trustee could have exercised if a petition in bankruptcy had been
filed by or against the Company upon the date of such default; and

 

(2)  all property received by the Trustee in respect of any
claims as such creditor, either as security therefor, or in satisfaction or
composition thereof, or otherwise, after the beginning of such four months’
period, or an amount equal to the proceeds of any such property, if disposed
of, subject, however, to the rights, if any,
of the Company and its other creditors in such property or such proceeds.

 

Nothing herein contained,
however, shall affect the right of the Trustee:

 

(A)  to retain for its own account (i) payments made on
account of any such claim by any Person (other than the Company) who is liable
thereon, and (ii) the proceeds of the bona fide sale of any such claim by the
Trustee to a third Person, and (iii) distributions made in cash, securities or
other property in respect of claims filed against the Company in bankruptcy or
receivership or in proceedings for reorganization pursuant to the Federal Bankruptcy
Act or applicable State law;

 

(B)  to realize, for its own account, upon any property held
by it as security for any such claim, if such property was so held prior to the
beginning of such four months’ period;

 

(C)  to realize, for its own account, but only to the extent
of the claim hereinafter mentioned, upon any property held by it as security
for any such claim, if such claim was created after the beginning of such four
months’ period and such property was received as security therefor simultaneously
with the creation thereof, and if the Trustee shall sustain the burden of
proving that at the time such property was so received the Trustee had no
reasonable cause to believe that a default, as defined in Subsection (c) of
this Section, would occur within four months; or

 

(D)  to receive payment on any
claim referred to in paragraph (B) or (C), against the release of any property
held as security for such claim

 

58

 

as provided in paragraph (B) or (C), as the
case may be, to the extent of the fair value of such property.

 

For the purposes of paragraphs (B), (C) and (D), property substituted
after the beginning of such four months’ period for property held as security
at the time of such substitution shall, to the extent of the fair value of the
property released, have the same status as the property released, and, to the
extent that any claim referred to in any of such paragraphs is created in
renewal of or in substitution for or for the purpose of repaying or refunding
any pre-existing claim of the Trustee as such creditor, such claim shall have
the same status as such pre-existing claim.

 

If the Trustee shall be required to account, the funds and property
held in such special account and the proceeds thereof shall be apportioned
among the Trustee, the Holders of Securities as to which the Trustee is acting
as Trustee hereunder and the holders of other indenture securities in such
manner that the Trustee, the Holders and the holders of other indenture securities
realize, as a result of payments from such special account and payments of
dividends on claims filed against the Company in bankruptcy or receivership or
in proceedings for reorganization pursuant to the Federal Bankruptcy Code or
applicable State law, the same percentage of their respective claims, figured
before crediting to the claim of the Trustee anything on account of the receipt
by it from the Company of the funds and property in such special account and
before crediting to the respective claims of the Trustee and such Holders and
the holders of other indenture securities dividends on claims filed against the
Company in bankruptcy or receivership or in proceedings for reorganization
pursuant to the Federal Bankruptcy Code or applicable State law, but after
crediting thereon receipts on account of the indebtedness represented by their
respective claims from all sources other than from such dividends and from the
funds and property so held in such special account. As used in this paragraph,
with respect to any claim, the term “dividends” shall include any distribution
with respect to such claim, in bankruptcy or receivership or proceedings for
reorganization pursuant to the Federal Bankruptcy Code or applicable State law,
whether such distribution is made in cash, securities or other property, but
shall not include any such distribution with respect to the secured portion, if
any, of such claim. The court in which such bankruptcy, receivership or
proceedings for reorganization is pending shall have jurisdiction (i) to
apportion among the Trustee, such Holders and the holders of other indenture
securities, in accordance with the provisions of this paragraph, the funds and
property held in such special account and proceeds thereof, or (ii) in lieu of such
apportionment, in whole or in part, to give to the provisions

 

59

 

of this
paragraph due consideration in determining the fairness of the distributions to
be made to the Trustee and such Holders and the holders of other indenture
securities with respect to their respective claims, in which event it shall not
be necessary to liquidate or to appraise the value of any securities or other
property held in such special account or as security for any such claim, or to
make a specific allocation of such distributions as between the secured and
unsecured portions of such claims, or otherwise to apply the provisions of this
paragraph as a mathematical formula.

 

Any Trustee
which has resigned or been removed after the beginning of such four months’
period shall be subject to the provisions of this Subsection as though such
resignation or removal had not occurred. If any Trustee has resigned or been
removed prior to the beginning of such four months’ period, it shall be subject
to the provisions of this Subsection if and only if the following conditions
exist:

 

(i)  the receipt of property or reduction of claim, which
would have given rise to the obligation to account, if such Trustee had
continued as Trustee, occurred after the beginning of such four months’ period;
and

 

(ii)  such receipt of property or reduction of claim occurred
within four months after such resignation or removal.

 

(b) There
shall be excluded from the operation of Subsection (a) of this Section a creditor
relationship arising from:

 

(1)  the ownership or acquisition of securities issued under
any indenture, or any security or securities having a maturity of one year or
more at the time of acquisition by the Trustee;

 

(2)  advances authorized by a receivership or bankruptcy
court of competent jurisdiction or by this Indenture, for the purpose of
preserving any property which shall at any time be subject to the lien of this
Indenture or of discharging tax liens or other prior liens or encumbrances thereon,
if notice of such advances and of the circumstances surrounding the making
thereof is given to the Holders at the time and in the manner provided in this
Indenture;

 

(3)  disbursements made in the ordinary course of business in
the capacity of trustee under an indenture, transfer agent, registrar,
custodian, paying agent, fiscal agent or depositary, or other similar capacity;

 

(4)  an indebtedness created as a result of services rendered
or premises rented; or an indebtedness created as a result of goods or
securities sold in a cash transaction, as defined in Subsection (c) of this
Section;

 

60

 

(5)  the ownership of stock or of
other securities of a corporation organized under the provisions of Section 25(a)
of the Federal Reserve Act, as amended, which is directly or indirectly a
creditor of the Company; and

 

(6)  the acquisition, ownership, acceptance or negotiation of
any drafts, bills of exchange, acceptances or obligations which fall within the
classification of self-liquidating paper, as defined in Subsection (c) of this
Section.

 

(c)  For
the purposes of this Section only:

 

(1)  the term “default” means any failure to make payment in
full of the principal of or interest (if any) on any of the Securities or upon
the other indenture securities when and as such principal or interest (if any)
becomes due and payable;

 

(2)  the term “other indenture securities” means securities
upon which the Company is an obligor outstanding under any other indenture (i) under
which the Trustee is also trustee, (ii) which contains provisions substantially
similar to the provisions of this Section, and (iii) under which a default
exists at the time of the apportionment of the funds and property held in such
special account;

 

(3)  the term “cash transaction” means any transaction in
which full payment for goods or securities sold is made within seven days after
delivery of the goods or securities in currency or in checks or other orders
drawn upon banks or bankers and payable upon demand;

 

(4)   the term “self-liquidating paper” means any draft, bill
of exchange, acceptance or obligation which is made, drawn, negotiated or
incurred by the Company for the purpose of financing the purchase, processing,
manufacturing, shipment, storage or sale of goods, wares or merchandise and
which is secured by documents evidencing title to, possession of, or a lien
upon, the goods, wares or merchandise or the receivables or proceeds arising
from the sale of the goods, wares or merchandise previously constituting the
security, provided the security is received by the Trustee simultaneously with
the creation of the creditor relationship with the Company arising from the
making, drawing, negotiating or incurring of the draft, bill of exchange, acceptance
or obligation;

 

(5)  the term “Company” means any obligor upon the
Securities; and

 

61

 

(6)  the term “Federal Bankruptcy Code” means
Title 11 of the United States Code or any successor thereto.

 

SECTION
614.        Appointment
of Authenticating Agent.

 

At any time when any of the
Securities remains Outstanding the Trustee may appoint an Authenticating Agent
or Agents with respect to one or more series of Securities which shall be
authorized to act on behalf of the Trustee to authenticate Securities of such
series issued upon exchange, registration of transfer or partial redemption
thereof or pursuant to Section 306, and Securities so authenticated shall be
entitled to the benefits of this Indenture and shall be valid and obligatory
for all purposes as if authenticated by the Trustee hereunder. Wherever
reference is made in this Indenture to the authentication and delivery of
Securities by the Trustee or the Trustee’s certificate of authentication, such
reference shall be deemed to include authentication and delivery on behalf of
the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent shall be acceptable to the Company and shall at all times
be a corporation organized and doing business under the laws of the United
States of America, any State thereof or the District of Columbia, authorized
under such laws to act as Authenticating Agent, having a combined capital and
surplus of not less than $50,000,000 and subject to supervision or examination
by Federal or State authority. If such Authenticating Agent publishes reports
of condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such Authenticating Agent shall be deemed to be
its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time an Authenticating Agent shall cease to
be eligible in accordance with the provisions of this Section, such
Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section.

 

Any corporation into which
an Authenticating Agent may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or consolidation
to which such Authenticating Agent shall be a party, or any corporation
succeeding to the corporate agency or corporate trust business of an
Authenticating Agent, shall continue to be an Authenticating Agent, provided
such corporation shall be otherwise eligible under this Section, without the
execution or filing of any paper or any further act on the part of the Trustee
or the Authenticating Agent.

 

62

 

An Authenticating Agent may
resign at any time by giving written notice thereof to the Trustee and the
Company. The Trustee may at any time terminate the agency of an Authenticating
Agent by giving written notice thereof to such Authenticating Agent and to the
Company. Upon receiving such a notice of resignation or upon such a
termination, or in case at any time such Authenticating Agent shall cease to be
eligible in accordance with the provisions of this Section, the Trustee may
appoint a successor Authenticating Agent which shall be acceptable to the
Company and shall mail written notice of such appointment by first-class mail,
postage prepaid, to all Holders of Securities of the series with respect to
which such Authenticating Agent will serve, as their names and addresses appear
in the Security Register. Any successor Authenticating Agent upon acceptance of
its appointment hereunder shall become vested with all the rights, powers and
duties of its predecessor hereunder, with like effect as if originally named as
an Authenticating Agent. No successor Authenticating Agent shall be appointed
unless eligible under the provisions of this Section.

 

The Trustee agrees to pay to
each Authenticating Agent from time to time reasonable compensation for its
services under this Section, and the Trustee shall be entitled to be reimbursed
for such payments, subject to the provisions of Section 607.

 

If an appointment with
respect to one or more series is made pursuant to this Section, the Securities
of such series may have endorsed thereon, in addition to or in lieu of the
Trustee’s certificate of authentication, an alternate certificate of
authentication in the following form:

 

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

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  As Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
                                                
  As Authenticating Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Officer

  
					

 

63

 

ARTICLE SEVEN

 

HOLDERS’ LISTS  AND
REPORTS  BY TRUSTEE  AND COMPANY

 

SECTION
701.       Company to Furnish Trustee Names and Addresses of Holders.

 

The Company
will furnish or cause to be furnished to the Trustee

 

(a)   semi-annually, not later
than January 15 and July 15 in each year, a list, in such form as the Trustee
may reasonably require, of the names and addresses of the Holders as of the
preceding December 31 or June 30, as the case may be, and

 

(b)   at such other times as the
Trustee may request in writing, within 30 days after the receipt by the Company
of any such request, a list of similar form and content as of a date not more
than 15 days prior to the time such list is furnished;

 

provided that
at any time the Trustee is acting as Securities Registrar, no such list shall
be required to be furnished.

 

SECTION 702.       Preservation of Information; Communications to Holders.

 

(a)  The Trustee shall preserve, in as current a
form as is reasonably practicable, the names and addresses of Holders contained
in the most recent list furnished to the Trustee as provided in Section 701 and
the names and addresses of Holders received by the Trustee in its capacity as
Security Registrar.  The Trustee may
destroy any list furnished to it as provided in Section 701 upon receipt of a
new list so furnished.

 

(b)  If three or more Holders (herein referred to
as “applicants”) apply in writing to the Trustee, and furnish to the Trustee
reasonable proof that each such applicant has owned a Security for a period of
at least six months preceding the date of such application, and such
application states that the applicants desire to communicate with other Holders
with respect to their rights under this Indenture or under the Securities and
is accompanied by a copy of the form of proxy or other communication which such
applicants propose to transmit, then the Trustee shall, within five business
days after the receipt of such application, at its election, either

(i)    afford such applicants
access to the information preserved at the time by the Trustee in accordance
with Section 702(a), or

 

(ii)   inform such applicants as
to the approximate number of Holders whose names and addresses appear in the
information preserved at the time by the Trustee in accordance with Section
702(a), and

 

64

 

as to the
approximate cost of mailing to such Holders the form of proxy or other
communication, if any, specified in such application.

 

If the Trustee
shall elect not to afford such applicants access to such information, the
Trustee shall, upon the written request of such applicants, mail to each Holder
whose name and address appear in the information preserved at the time by the
Trustee in accordance with Section 702(a) a copy of the form of proxy or other
communication which is specified in such request, with reasonable promptness after
a tender to the Trustee of the material to be mailed and of payment, or
provision for the payment, of the reasonable expenses of mailing, unless within
five days after such tender the Trustee shall mail to such applicants and file
with the Commission, together with a copy of the material to be mailed, a
written statement to the effect that, in the opinion of the Trustee, such
mailing would be contrary to the best interest of the Holders or would be in
violation of applicable law.  Such
written statement shall specify the basis of such opinion.  If the Commission, after opportunity for a
hearing upon the objections specified in the written statement so filed, shall
enter an order refusing to sustain any of such objections or if, after the
entry of an order sustaining one or more of such objections, the Commission
shall find, after notice and opportunity for hearing, that all the objections
so sustained have been met and shall enter an order so declaring, the Trustee
shall mail copies of such material to all such Holders with reasonable
promptness after the entry of such order and the renewal of such tender;
otherwise the Trustee shall be relieved of any obligation or duty to such
applicants respecting their application.

 

(c)  Every Holder of Securities, by receiving and
holding the same, agrees with the Company and the Trustee that neither the
Company nor the Trustee nor any agent of either of them shall be held
accountable by reason of the disclosure of any such information as to the names
and addresses of the Holders in accordance with Section 702(b), regardless of
the source from which such information was derived, and that the Trustee shall
not be held accountable by reason of mailing any material pursuant to a request
made under Section 702(b).

 

SECTION 703.       Reports by Trustee.

 

(a)  Within 60 days after January 15 of each year
commencing with the year 1984, the Trustee shall transmit by mail to all
Holders, as their names and addresses appear in the Security Register, a brief
report dated as of such January 15 with respect to:

 

(1)   its eligibility under
Section 609 and its qualifications under Section 608, or in lieu thereof, if to
the best of its knowledge it has

 

65

 

continued to
be eligible and qualified under said Sections, a written statement to such
effect;

 

(2)  the character and amount of
any advances (and if the Trustee elects so to state, the circumstances
surrounding the making thereof) made by the Trustee (as such) which remain
unpaid on the date of such report, and for the reimbursement of which it claims
or may claim a lien or charge, prior to that of the Securities, on any property
or funds held or collected by it as Trustee, except that the Trustee shall not
be required (but may elect) to report such advances if such advances so
remaining unpaid aggregate not more than 1/2 of 1% of the
principal amount of the Securities Outstanding on the date of such report;

 

(3)  the amount, interest rate
and maturity date of all other indebtedness owing by the Company (or by any
other obligor on the Securities) to the Trustee in its individual capacity, on
the date of such report, with a brief description of any property held as
collateral security therefor, except an indebtedness based upon a creditor relationship
arising in any manner described in Section 613(b)(2), (3), (4) or (6);

 

(4)  the property and funds, if
any, physically in the possession of the Trustee as such on the date of such
report;

 

(5)  any additional issue of
Securities which the Trustee has not previously reported; and

 

(6)  any action taken by the
Trustee in the performance of its duties hereunder which it has not previously
reported and which in its opinion materially affects the Securities, except
action in respect of a default, notice of which has been or is to be withheld
by the Trustee in accordance with Section 602.

 

(b)   The Trustee shall transmit by mail to all
Holders, as their names and addresses appear in the Security Register, a brief
report with respect to the character and amount of any advances (and if the
Trustee elects so to state, the circumstances surrounding the making thereof)
made by the Trustee (as such) since the date of the last report transmitted
pursuant to Subsection (a) of this Section (or if no such report has yet been
so transmitted, since the date of execution of this instrument) for the
reimbursement of which it claims or may claim a lien or charge, prior to that
of the Securities, on property or funds held or collected by it as Trustee and
which it has not previously reported pursuant to this Subsection, except that
the Trustee shall not be required (but may elect) to report such advances if
such advances remaining unpaid at any time aggregate 10% or less of the
principal

 

66

 

amount of the Securities
Outstanding at such time, such report to be transmitted within 90 days after
such time.

 

(c)   A copy of each such report shall, at the time
of such transmission to Holders, be filed by the Trustee with each stock
exchange upon which any Securities are listed, with the Commission and with the
Company. The Company will notify the Trustee when any Securities are listed on
any stock exchange.

 

SECTION 704.       Reports by Company.

 

The Company
shall:

 

(1)  file with the Trustee,
within 15 days after the Company is required to file the same with the
Commission, copies of the annual reports and of the information, documents and
other reports (or copies of such portions of any of the foregoing as the
Commission may from time to time by rules and regulations prescribe) which the
Company may be required to file with the Commission pursuant to Section 13 or
Section 15(d) of the Securities Exchange Act of 1934; or, if the Company is not
required to file information, documents or reports pursuant to either of said
Sections, then it shall file with the Trustee and the Commission, in accordance
with rules and regulations prescribed from time to time by the Commission, such
of the supplementary and periodic information, documents and reports which may
be required pursuant to Section 13 of the Securities Exchange Act of 1934 in
respect of a security listed and registered on a national securities exchange
as may be prescribed from time to time in such rules and regulations;

 

(2)  file with the Trustee and
the Commission, in accordance with rules and regulations prescribed from time
to time by the Commission, such additional information, documents and reports
with respect to compliance by the Company with the conditions and covenants of
this Indenture as may be required from time to time by such rules and
regulations; and

 

(3)  transmit by mail to all
Holders, as their names and addresses appear in the Security Register, within
30 days after the filing thereof with the Trustee, such summaries of any
information, documents and reports required to be filed by the Company pursuant
to paragraphs (1) and (2) of this Section as may be required by rules and
regulations prescribed from time to time by the Commission.

 

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ARTICLE EIGHT

 

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER
OR LEASE

 

SECTION 801.       Company May Consolidate, Etc., Only on Certain Terms.

 

Nothing contained in this Indenture or in any of the Securities shall
prevent any consolidation or merger of the Company with or into any other
corporation or corporations (whether or not affiliated with the Company), or
successive consolidations or mergers in which the Company or its successor or
successors shall be a party or parties, or shall prevent any sale, conveyance,
lease, or other disposition of the property of the Company as an entirety or
substantially as an entirety, to any other corporation (whether or not
affiliated with the Company) authorized to acquire and operate the same; provided, however,  and the Company
hereby covenants and agrees, that upon any such consolidation, merger, sale,
conveyance, lease or other disposition to which the Company is a party, the due
and punctual payment of the principal of (and premium, if any) and interest (if
any) on all of the Outstanding Securities, according to their tenor, and the
due and punctual performance and observance of all of the covenants and
conditions of this Indenture to be performed by the Company, shall be expressly
assumed, by supplemental indenture satisfactory in form to the Trustee,
executed and delivered to the Trustee by the corporation (if other than the
Company) formed by such consolidation, or into which the Company shall have
been merged, or by the corporation which shall have acquired such property;
and, provided further, that no such
consolidation, merger, sale or conveyance shall be effected if immediately
after giving effect thereto there shall exist any mortgage on, pledge of, or
other lien on or security interest in any of its properties or assets, or upon
the properties or assets of any Subsidiary of such corporation, which would not
be permitted by the provisions of Section 1004; or the corporation with, into
or to which such consolidation, merger, sale or conveyance is proposed to be
made would have outstanding any Funded Debt, or if any Subsidiary of such
corporation would have outstanding any Funded Debt or Minority Interests in
Capital Stock, which would not be permitted by the provisions of Section 1005.
Any mortgage on, pledge of, or other lien on or security interest in the
properties and assets of the corporation (if other than the Company) formed by
such consolidation, or into which the Company shall have been merged, or which
shall have acquired such property, existing immediately prior to such
consolidation, merger, or acquisition, shall, for the purposes of Section 1004,
be deemed a mortgage or other lien upon or security interest in property
acquired by the Company at the time of the acquisition thereof.

 

68

 

SECTION 802.       Successor Corporation to be Substituted.

 

In case of any such consolidation, merger, sale, conveyance, lease or
other disposition to which the Company is a party and upon the assumption by
the successor corporation, by supplemental indenture, executed and delivered to
the Trustee and satisfactory in form to the Trustee, of the due and punctual
payment of the principal of (and premium, if any) and interest (if any) on all
of the Outstanding Securities and the due and punctual performance of all of
the convenants and conditions of this Indenture to be performed by the Company,
such successor corporation shall succeed to, and be substituted for, and may
exercise every right and power of, the Company under this Indenture with the
same effect as if such successor corporation had been named as the Company
herein, and thereafter, except in the case of a lease, the predecessor
corporation shall be relieved of all obligations and convenants under this Indenture
and the Securities. Such successor corporation thereupon may cause to be
signed, and may issue either in its own name or in the name of Equitable Gas
Company any or all of the Securities issuable hereunder which theretofore shall
not have been signed by the Company and delivered to the Trustee; and, upon the
order of such successor corporation instead of the Company and subject to all
the terms, conditions and limitations in this Indenture prescribed, the Trustee
shall authenticate and shall deliver any Securities which previously shall have
been signed and delivered by the officers of the Company to the Trustee for
authentication, and any Securities which such successor corporation thereafter
shall cause to be signed and delivered to the Trustee for that purpose. All the
Securities so issued shall in all respects have the same legal rank and benefit
under this Indenture as the Securities theretofore or thereafter issued in
accordance with the terms of this Indenture as though all of such Securities had
been issued at the date of the execution hereof.

 

In case of any such consolidation, merger, sale, conveyance, lease or
other disposition such changes in phraseology and form (but not in substance)
may be made in the Securities thereafter to be issued as may be appropriate.

 

SECTION 803.       Opinion of Counsel to be Given Trustee.

 

The Trustee, subject to Section 601 and 603, may receive an Opinion of
Counsel pursuant to the provisions of Section 102 as conclusive evidence that
any such consolidation, merger, sale, conveyance, lease or other disposition
and any such assumption complies with the provisions of this Article.

 

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ARTICLE NINE

 

SUPPLEMENTAL INDENTURES

 

SECTION 901.       Supplemental Indentures
without Consent of Holders.

 

Without the
consent of any Holders, the Company, when authorized by a Board Resolution, and
the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto, in form satisfactory to the Trustee, for any of
the following purposes:

 

(1)  to evidence the succession
of another corporation to the Company, or successive successions, and the
assumption by any such successor of the covenants of the Company herein and in
the Securities; or

 

(2)  to add to the covenants of
the Company for the benefit of the Holders of all or any series of Securities
(and if such covenants are to be for the benefit of less than all series of
Securities, stating that such covenants are expressly being included solely for
the benefit of such series) or to surrender any right or power herein conferred
upon the Company; or

 

(3)  to add any additional Events
of Default; or

 

(4)  to add to or change any of
the provisions of this Indenture to such extent as shall be necessary to permit
or facilitate the issuance of Securities in bearer form, registrable or not
registrable as to principal, and with or without interest coupons; or

 

(5)  to change or eliminate any
of the provisions of this Indenture, provided that
any such change or elimination shall become effective only when there is no
Security Outstanding of any series created prior to the execution of such
supplemental indenture which is entitled to the benefit of such provision; or

 

(6)  to secure the Securities
pursuant to the requirements of Sections 1004 or otherwise; or

 

(7)  to establish the form or
terms of Securities of any series as permitted by Sections 201 and 301; or

 

(8)  to evidence and provide for
the acceptance of appointment hereunder by a successor Trustee with respect to
the Securities of one or more series and to add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee, pursuant
to the requirements of Section 611(b); or

 

(9)  to cure any ambiguity, to
correct or supplement any provision herein which may be defective or
inconsistent with any other provision

 

70

 

herein, or to
make any other provisions with respect to matters or questions arising under
this Indenture, provided such action shall not
adversely affect the interests of the Holders of Securities of any series in
any material respect.

 

SECTION 902.       Supplemental Indentures
with Consent of Holders.

 

With the
consent of the Holders of not less than 662/3% in principal amount of the Outstanding Securities of
all series affected by such supplemental indenture, taken in the aggregate
without regard to the separate series of Outstanding Securities, by Act of said
Holders delivered to the Company and the Trustee, the Company, when authorized
by a Board Resolution, and the Trustee may enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture
with respect to Securities of such series affected or of modifying in any
manner the rights of the Holders of Securities of such series affected under
this Indenture; provided, however, that no such
supplemental indenture shall, without the consent of the Holder of each Outstanding
Security affected thereby,

 

(1)  change the Stated Maturity
of the principal of, or any instalment of principal of or interest on, any
Security, or reduce the principal amount thereof or the rate of interest
thereon or any premium payable upon the redemption thereof, or reduce the
amount of the principal of an Original Issue Discount Security that would be
due and payable upon a declaration of acceleration of the Maturity thereof
pursuant to Section 502, or change any Place of Payment where, or the coin or
currency in which, any Security or any premium or the interest thereon is
payable, or impair the right to institute suit for the enforcement of any such
payment on or after the Stated Maturity thereof (or, in the case of redemption,
on or after the Redemption Date); or

 

(2)  reduce the percentage in
principal amount of the Outstanding Securities, the consent of whose Holders is
required for any such supplemental indenture, or the consent of whose Holders
is required for any waiver of compliance with certain provisions of this
Indenture or of certain defaults hereunder and their consequences provided for
in this Indenture; or

 

(3)  modify any of the provisions
of this Section, Section 513 or Section 1010, except to increase any such
percentage or to provide that certain other provisions of this Indenture cannot
be modified or waived without the consent of the Holder of each Outstanding
Security affected thereby; provided, however,
that this clause shall not be deemed to require the consent of any Holder with
respect to changes in the

 

71

 

references to “the Trustee” and
concomitant changes in this Section and Section 1010, or the deletion
of this proviso, in accordance with the requirements of Sections 611(b) and
901(8).

 

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

 

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

 

SECTION 903. Execution of
Supplemental Indentures.

 

In executing, or
accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Trustee shall be entitled to receive, and
(subject to Section 601) shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Trustee may, but shall not be
obligated to, enter into any such supplemental indenture which affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise.

 

SECTION 904. Effect of Supplemental
Indentures.

 

Upon the execution of
any supplemental indenture under this Article, this Indenture shall be modified
in accordance therewith, and such supplemental indenture shall form a part of
this Indenture for all purposes; and every Holder of Securities theretofore or
thereafter authenticated and delivered hereunder shall be bound thereby.

 

SECTION 905. Conformity with Trust Indenture Act.

 

Every supplemental
indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act as then in effect.

 

SECTION 906. Reference in
Securities to Supplemental
Indentures.

 

Securities of any series
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and shall if required by the Trustee, bear a
notation in form approved by the Trustee as to any matter provided for in such
supplemental indenture. If the Company

 

72

 

shall so determine, new Securities of any
series so modified as to conform, in the opinion of the Trustee and the
Company, to any such supplemental indenture may be prepared and executed by the
Company and authenticated and delivered by the Trustee in exchange for
Outstanding Securities of such series.

 

ARTICLE TEN

 

COVENANTS

 

SECTION 1001. Payment of
Principal, Premium and Interest.

 

The Company covenants
and agrees for the benefit of each series of Securities that it will duly and
punctually pay the principal of (and premium, if any) and interest (if any) on
the Securities of that series in accordance with the terms of the Securities
and this Indenture. Interest (if any) on the Securities may be paid by mailing
checks for such interest payable to or upon the written order of the Holders
thereof entitled thereto at the addresses shown on the Security Register or may
be paid in any other manner not unacceptable to the Trustee.

 

SECTION 1002. Maintenance
of Office or Agency.

 

The Company will
maintain in each Place of Payment for any series of Securities, so long as any
of the Securities of that series remains Outstanding, an office or agency where
Securities of that series may be presented or surrendered for payment and an
office or agency in at least one such Place of Payment where Securities of that
series may be surrendered for registration of transfer or exchange and where
notices and demands to or upon the Company in respect of the Securities of that
series and this Indenture may be served. The Company will give prompt written
notice to the Trustee of the location, and any change in the location, of any
such offices or agencies. Initially, and if at any time the Company 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, and
the Company hereby appoints the Trustee as its agent to receive all such
presentations, surrenders, notices and demands.

 

The Company may also
from time to time designate one or more other offices or agencies in locations
other than Places of Payment where the Securities of one or more series may be
presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided, however,
that no such designation or rescission shall in any manner

 

73

 

relieve the Company of its obligation to
maintain an office or agency in each Place of Payment for Securities of any
series in the manner set forth in the preceding paragraph. The Company will
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.

 

SECTION 1003.     Money for Securities Payments to be Held in
Trust.

 

If the Company
shall at any time act as its own Paying Agent with respect to any series of
Securities, it will, on or before each due date of the principal of (and
premium, if any) or interest (in any) on any of the Securities of that series,
segregate and hold in trust for the benefit of the Persons entitled thereto a
sum sufficient to pay the principal (and premium, if any) or interest (if any)
so becoming due until such sums shall be paid to such Persons or otherwise
disposed of as herein provided and will promptly notify the Trustee of any
failure on its part so to act.

 

Whenever the
Company shall have one or more Paying Agents for any series of Securities, it
will, prior to each due date of the principal of (and premium, if any) or
interest (if any) on any Securities of that series, deposit with a Paying Agent
a sum sufficient to pay the principal (and premium, if any) or interest (if
any) so becoming due, such sum to be held in trust for the benefit of the
Persons entitled to such principal, premium or interest, and (unless such
Paying Agent is the Trustee) the Company will promptly notify the Trustee of
any failure on its part so to act.

 

The Company
will cause each Paying Agent for any series of Securities other than itself or
the Trustee to execute and deliver to the Trustee an instrument in which such
Paying Agent shall agree with the Trustee, subject to the provisions of this
Section, that such Paying Agent will:

 

(1)   hold
all sums held by it for the payment of the principal of (and premium, if any)
or interest (if any) on Securities of that series in trust for the benefit of
the Persons entitled thereto until such sums shall be paid to such Persons or
otherwise disposed of as herein provided;

 

(2)   give
the Trustee notice of any default by the Company (or any other obligor upon the
Securities of that series) in the making of any payment of principal (and
premium, if any) or interest (if any) on the Securities of that series; and

 

(3)   at
any time during the continuance of any such default, upon the written request
of the Trustee, forthwith pay to the Trustee all sums so held in trust by such
Paying Agent.

 

74

 

The Company
may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture pursuant to Section 401 or the satisfaction, discharge and
defeasance of Securities of any series pursuant to Section 403 or for any
other purpose, pay, or by Company Order direct any Paying Agent to pay, to the Trustee
all sums held in trust by the Company or such Paying Agent or all sums in
respect of Securities of such series held in trust by the Company or such
Paying Agent, such sums to be held by the Trustee upon the same trusts as those
upon which such sums were held by the Company or such Paying Agent; and, upon
such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money. Upon the
satisfaction and discharge of this Indenture pursuant to Section 401, all
money held by any Paying Agent (other than the Trustee) as such agent shall,
upon Company Order, be paid to the order of the Company, and thereupon such
Paying Agent shall be released from all liability with respect to such money. Upon
the satisfaction, discharge and defeasance of Securities of any series pursuant
to Section 403, all money in respect of Securities of such series held by any
Paying Agent (other than the Trustee) as such agent shall, upon Company Order,
be paid to the order of the Company, and thereupon such Paying Agent shall be
released from all liability with respect to such money.

 

Any money
deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of (and premium, if any) or interest (if
any) on any Security of any series and remaining unclaimed for three years
after such principal (and premium, if any) or interest (if any) has become due
and payable shall be paid to the Company on Company Request, or (if then held
by the Company) shall be discharged from such trust; and the Holder of such
Security shall thereafter, as an unsecured general creditor, look only to the
Company for payment thereof, and all liability of the Trustee or such Paying
Agent with respect to such trust money, and all liability of the Company as
trustee thereof, shall thereupon cease; provided, however,
that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Company cause to be published once, in a
newspaper published in the English language, customarily published on each
Business Day and of general circulation in the Borough of Manhattan, The City
of New York, notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such
publication, any unclaimed balance of such money then remaining will be repaid
to the Company.

 

75

 

SECTION 1004.     Limitation on Liens.

 

The Company
covenants and agrees that, so long as any of the Securities remains
Outstanding, the Company will not, and will not permit any Subsidiary to,
create or suffer to be created or to exist any mortgage on, pledge of, or other
lien on or security interest in, any of its properties or assets now owned or
hereafter acquired to secure any indebtedness, without making effective
provision whereby the Securities shall be equally and ratably secured with any
and all such indebtedness and with any other indebtedness similarly entitled to
be equally and ratably secured; provided, however, that this restriction shall not apply to (a) the
Trust Indenture from the Company to Mellon National Bank and Trust Company (now
Mellon Bank, N.A.), as Trustee, dated as of January 1, 1948, as
supplemented or amended at any time and from time to time (the “Mortgage”), to
the extent the Mortgage secures the Company’s First Mortgage Bonds, or any
indenture supplemental to the Mortgage subjecting any property to the lien
thereof or confirming the lien thereof upon any property, whether now owned or
hereafter acquired, or the issuance of any additional bonds pursuant to the
Mortgage; (b) any Divisional Lien; (c) the pledge of any cash or
marketable securities for the purpose of obtaining any indemnity, performance
or other similar bonds in the ordinary course of business, or as security for
the payment of taxes or other assessments being contested in good faith, or for
the purpose of obtaining a stay or discharge in the course of any legal
proceedings; (d) the pledge or assignment in the ordinary course of
business of accounts receivable, or customers’ instalment paper, representing
part or all of the purchase price of appliances or equipment; or (e) mortgages
or other liens upon (i) property to secure obligations to pay all or a
part of the purchase price of or rentals or royalties in respect of such
property out of the production, or the proceeds of such production, from such
property of oil or gas or products or by-products thereof, or (ii) the
production from property of oil or gas or products or by-products thereof, or
the proceeds of such production, to secure obligations to pay all or a part of
the expenses of exploration, drilling or development of such property out of
such production or the proceeds of such production.

 

SECTION 1005.     Limitation upon  Additional Funded Debt.

 

The Company
covenants and agrees that, so long as any of the Securities remains
Outstanding, the Company will not create, incur, assume or guarantee any Funded
Debt, and will not permit any Subsidiary to create, incur, assume or guarantee
any Funded Debt or sell any capital stock (other than to the Company or to a
Wholly-owned Subsidiary), unless, after giving effect thereto and to the
application of the proceeds thereof, the sum of Consolidated

 

76

 

Funded Debt and the aggregate Minority
Interests in Capital Stock of all Subsidiaries does not exceed an amount
obtained by multiplying the Consolidated Net Worth, as shown by a pro forma
consolidated balance sheet of the Company and its Subsidiaries as of a date not
more than 90 days prior to the date such additional Funded Debt is created,
incurred, assumed or guaranteed, or such capital stock is sold, by a fraction
determined as follows:

 

(a)   the denominator shall be an amount equal to
the sum of the Net Cost as of the date of said pro forma consolidated balance
sheet of all Consolidated Utility Property and Consolidated Non-utility
Property owned by the Company and its Subsidiaries; and

 

(b)   the numerator shall be an amount equal to the
sum of 150% of the Net Cost as of the date of said pro forma consolidated
balance sheet of all Consolidated Utility Property and 662/3 % of the net cost as of such date of all Consolidated
Non-utility Property owned by the Company and its Subsidiaries.

 

In case the
Company or any Subsidiary shall sell or otherwise dispose of Funded Debt of the
Company or Funded Debt or capital stock of any Subsidiary, other than to the
Company or to a Wholly-owned Subsidiary, such sale or other disposition shall,
for the purposes of this Section 1005, be deemed the creation of Funded
Debt or Minority Interests in Capital Stock, as the case may be, to the extent
of such Funded Debt or capital stock so sold or otherwise disposed of. In case
any Subsidiary owning Funded Debt of the Company or Funded Debt or capital
stock of any Subsidiary shall be consolidated with or merged into any
corporation other than the Company or a Wholly-owned Subsidiary, the amount of
such Funded Debt or capital stock owned by any such corporation or by any other
Person immediately following such consolidation or merger shall, for the
purposes of this Section 1005, be deemed to have been created or sold, as
the case may be, upon the becoming effective of such consolidation or merger.
For purposes of this Section 1005, Funded Debt or Minority Interests in
Capital Stock, as the case may be, shall also be deemed to have been created if
and to the extent that a corporation shall have outstanding, immediately after
becoming a Subsidiary, Funded Debt or capital stock owned other than by the
Company or a Wholly-owned subsidiary.

 

SECTION 1006. Corporate
Existence.

 

Subject to Article Eight,
the Company will do or cause to be done all things necessary to preserve and
keep in full force and effect its corporate existence, rights (charter and
statutory) and franchises; provided, however,
that the Company shall not be required to preserve any such right or

 

77

 

franchise if the Board of Directors shall
determine that the preservation thereof is no longer desirable in the conduct
of the business of the Company and that the loss thereof is not disadvantageous
in any material respect to the Holders.

 

SECTION 1007. Maintenance
of Properties.

 

The Company
will cause all properties used or useful in the conduct of its business or the
business of any Subsidiary to be maintained and kept in good condition, repair
and working order and supplied with all necessary equipment and will cause to
be made all necessary repairs, renewals, replacements, betterments and
improvements thereof, all as in the judgment of the Company may be necessary so
that the business carried on in connection therewith may be properly and
advantageously conducted at all times; provided, however,
that nothing in this Section shall prevent the Company from discontinuing
the operation or maintenance of any of such properties if such discontinuance
is, in the judgment of the Company, desirable in the conduct of its business or
the business of any Subsidiary and not disadvantageous in any material respect
to the Holders.

 

SECTION 1008. Payment of
Taxes and Other Claims.

 

The Company
will pay or discharge or cause to be paid or discharged, before the same shall
become delinquent, (1) all taxes, assessments and governmental charges
levied or imposed upon the Company or any Subsidiary or upon the income,
profits or property of the Company or any Subsidiary, and (2) all lawful
claims for labor, materials and supplies which, if unpaid, might by law become
a lien upon the property of the Company or any Subsidiary; provided,
however, that the Company shall not be required to pay or discharge
or cause to be paid or discharged any such tax, assessment, charge or claim
whose amount, applicability or validity is being contested in good faith by
appropriate proceedings.

 

SECTION 1009. Statement by
Officers as to Default.

 

The Company
will deliver to the Trustee, within 120 days after the end of each fiscal year
of the Company ending after the date hereof, an Officers’ Certificate, stating
whether or not to the best knowledge of the signers thereof the Company is in
default in the performance and observance of any of the terms, provisions and
conditions of Sections 1001 to 1008, inclusive, and if the Company shall be in
default, specifying all such defaults and the nature and status thereof of
which they may have knowledge.

 

78

 

SECTION 1010. Waiver of
Certain Covenants.

 

The Company
may omit in any particular instance to comply with any term, provision or
condition set forth in Sections 1001 to 1008, inclusive, with respect to the
Securities of any series or with any additional covenants made applicable to
the Securities of any series as contemplated by paragraph (13) of Section 301
if before the time for such compliance the Holders of at least 662/3% in principal amount of the
Outstanding Securities of such series shall, by Act of such Holders, either
waive such compliance in such instance or generally waive compliance with such
term, provision or condition, but no such waiver shall extend to or affect such
term, provision or condition except to the extent so expressly waived, and,
until such waiver shall become effective, the obligations of the Company and
the duties of the Trustee in respect of any such term, provision or condition
shall remain in full force and effect.

 

ARTICLE ELEVEN

 

REDEMPTION OF SECURITIES

 

SECTION 1101. Applicability
of Article.

 

Securities of
any series which are redeemable before their Stated Maturity shall be
redeemable in accordance with their terms and (except as otherwise specified as
contemplated by Section 301 for Securities of any series) in accordance
with this Article.

 

SECTION 1102. Election to Redeem; Notice to Trustee.

 

In case of any
redemption at the election of the Company of less than all the Securities of
any series, the Company shall, at least 60 days prior to the Redemption Date
fixed by the Company (unless a shorter notice shall be satisfactory to the
Trustee), notify the Trustee of such Redemption Date and of the principal
amount of Securities of such series to be redeemed. In the case of any
redemption of Securities prior to the expiration of any restriction on such redemption
provided in the terms of such Securities or elsewhere in this Indenture, the
Company shall furnish the Trustee with an Officers’ Certificate evidencing
compliance with such restriction.

 

SECTION 1103. Selection by
Trustee of Securities to be Redeemed.

 

If less than
all the Securities of any series are to be redeemed, the particular Securities
to be redeemed shall be selected not more than 60 days prior to the Redemption
Date by the Trustee, from the Outstanding Securities of such series not
previously called for redemption, by such method as

 

79

 

the Trustee shall deem fair and appropriate
and which may provide for the selection for redemption of portions (equal to
the minimum authorized denomination for Securities of that series or any
integral multiple thereof) of the principal amount of Securities of such series
of a denomination larger than the minimum authorized denomination for
Securities of that series. For all purposes of this Indenture, unless the
context otherwise requires, all provisions relating to the redemption of
Securities shall relate, in the case of any Securities redeemed or to be
redeemed only in part, to the portion of the principal amount of such
Securities which has been or is to be redeemed.

 

The Trustee
shall promptly notify the Company in writing of the Securities selected for
redemption and, in the case of any Securities selected for partial redemption,
the principal amount thereof to be redeemed.

 

SECTION 1104. Notice of
Redemption.

 

Notice of
redemption shall be given by first-class mail, postage prepaid, mailed not less
than 30 nor more than 60 days prior to the Redemption Date, to each Holder of
Securities to be redeemed, at his address appearing in the Security Register.

 

All notices of
redemption shall state:

 

(1)  the
Redemption Date,

 

(2)  the
Redemption Price,

 

(3)  if
less than all the Outstanding Securities of any series are to be redeemed, the
identification (and, in the case of partial redemption, the principal amounts)
of the particular Securities to be redeemed,

 

(4)  that
on the Redemption Date the Redemption Price will become due and payable upon
each such Security to be redeemed and, if applicable, that interest thereon
will cease to accrue on and after said date,

 

(5)  the
place or places where such Securities are to be surrendered for payment of the
Redemption Price, and

 

(6)  that
the redemption is for a sinking fund, if such is the case.

 

Notice of
redemption of Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Company’s request, by the Trustee in the name
and at the expense of the Company.

 

SECTION 1105. Deposit of
Redemption Price.

 

Not later than
the opening of business on any Redemption Date, the Company shall deposit with
the Trustee or with a Paying Agent (or, if the Company is acting as its own
Paying Agent, segregate and hold in trust as provided in Section 1003) an
amount of money sufficient to pay the Redemption 

 

80

 

Price of, and (except if the Redemption Date
shall be an Interest Payment Date) accrued interest on, all the Securities
which are to be redeemed on that date.

 

SECTION 1106. Securities
Payable on Redemption Date.

 

Notice of
redemption having been given as aforesaid, the Securities so to be redeemed
shall, on the Redemption Date, become due and payable at the Redemption Price
therein specified, and, if such Securities bear interest, from and after such
date (unless the Company shall default in the payment of the Redemption Price
and accrued interest) such Securities shall cease to bear interest. Upon
surrender of any such Security for redemption in accordance with said notice,
such Security shall be paid by the Company at the Redemption Price, together
with any accrued interest to the Redemption Date; provided,
however, that instalments of interest whose Stated Maturity is on
prior to the Redemption Date shall be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 307.

 

If any
Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal (and premium, if any) shall, until paid, bear
interest from the Redemption Date at the rate (if any) prescribed therefor in
the Security.

 

SECTION 1107. Securities
Redeemed in Part.

 

Any Security
which is to be redeemed only in part shall be surrendered at a Place of Payment
therefor (with, if the Company or the Trustee so requires, due endorsement by,
or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or his attorney duly authorized in
writing), and the Company shall execute, and the Trustee shall authenticate and
deliver to the Holder of such Security without service charge, a new Security
or Securities of the same series, of any authorized denomination as requested
by such Holder, in aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Security so surrendered.

 

ARTICLE TWELVE

 

SINKING FUNDS

 

SECTION 1201.Applicability
of Article.

 

The provisions
of this Article shall be applicable to any sinking fund for the retirement
of Securities of a series except as otherwise specified as contemplated by Section 301
for Securities of such series.

 

81

 

The minimum
amount of any sinking fund payment provided for by the terms of Securities of
any series is herein referred to as a “mandatory sinking fund payment”, and any
payment in excess of such minimum amount provided for by the terms of
Securities of any series is herein referred to as an “optional sinking fund
payment”. If provided for by the terms of Securities of any series, the cash
amount of any mandatory sinking fund payment may be subject to reduction as
provided in Section 1202. Each sinking fund payment shall be applied to
the redemption of Securities of the series to which such sinking fund payment
relates as provided for by the terms of Securities of such series.

 

SECTION 1202.     Satisfaction of Sinking Fund Payments with
Securities.

 

The Company (1) may
deliver Outstanding Securities of a series (other than any previously called
for redemption) and (2) may apply as a credit Securities of a series which
have been redeemed either at the election of the Company pursuant to the terms
of such Securities or through the application of permitted optional sinking
fund payments pursuant to the terms of such Securities, in each case in
satisfaction of all or any part of any mandatory sinking fund payment with
respect to the Securities of such series as provided for by the terms of such
series; provided that such Securities have not
been previously so credited. Such Securities shall be received and credited for
such purpose by the Trustee at the Redemption Price specified in such
Securities for redemption through operation of the sinking fund and the amount
of such sinking fund payment shall be reduced accordingly.

 

SECTION 1203.     Redemption of Securities for Sinking Fund.

 

Not less than
45 days prior to each sinking fund payment date for any series of Securities,
the Company will deliver to the Trustee an Officers’ Certificate specifying the
amount of the next ensuing sinking fund payment for that series pursuant to the
terms of that series, the portion thereof, if any, which is to be satisfied by
payment of cash and the portion thereof, if any, which is to be satisfied by
delivering and crediting Securities of that series pursuant to Section 1202
and, on or prior to such sinking fund payment date, will also deliver to the
Trustee any Securities to be so delivered. Not less than 30 days before each
such sinking fund payment date the Trustee shall select the Securities to be
redeemed upon such sinking fund payment date in the manner specified in Section 1103
and cause notice of the redemption thereof to be given in the name of and at
the expense of the Company in the manner provided in Section 1104. Such
notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Sections 1106 and 1107.

 

82

 

This
instrument may be executed in any number of counterparts, each of which so
executed shall be deemed to be an original, but all such counterparts shall
together constitute but one and the same instrument.

 

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

 

 

	
   

  	
  EQUITABLE GAS COMPANY

  
	
   

  	
   

  
	
  [CORPORATE SEAL]

  	
  By 

  	
  /s/ Donald
  I. Moritz

  	 

	
   

  	
   

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
  /s/ Andrew
  C. Moeller

  	
   

  	
   

  
	
  Secretary

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PITTSBURGH NATIONAL BANK

  
	
   

  	
   

  
	
  [CORPORATE SEAL]

  	
   

  
	
   

  	
  By

  	
  [illigble]

  	 

	
   

  	
   

  	
  Vice
  President

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
  [illigble]

  	
   

  	
   

  
	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
						

 

83

 

	
  COMMONWEALTH OF PENNSYLVANIA,

  	
  } ss:

  
	
  COUNTY OF ALLEGHENY,

  

 

On this 13th day of April, 1983, before me, the
undersigned officer, personally appeared Donald I. Moritz, who acknowledged
himself to be President of Equitable Gas Company, a corporation, and that he as
such President, being authorized to do so, executed the foregoing instrument
for the purposes therein contained by signing the name of the corporation by
himself as President.

 

IN WITNESS WHEREOF, I hereunto set my hand and
official seal.

 

 

	
   

  	
  [illigble]

  
	
   

  	
  Notary Public

  

 

 

	
  COMMONWEALTH OF PENNSYLVANIA,

  	
  }ss:

  
	
  COUNTY OF ALLEGHENY,

  

 

On this 13th day of April, 1983, before me, the
undersigned officer, personally appeared Fred J. Deramo, who acknowledged
himself to be Vice President of Pittsburgh National Bank, a national banking
association, and that he as such Vice President, being authorized to do so,
executed the foregoing instrument for the purposes therein contained by signing
the name of said banking association by himself as Vice President.

 

IN WITNESS WHEREOF, I hereunto set my hand and official
seal.

 

	
   

  	
  DOROTHY A. LIGGETT.

  
	
   

  	
  Notary Public

  
	
   

  	
  DOROTHY A. LIGGETT. NOTARY
  PUBLIC

  
	
   

  	
  PITTSBUZGH ALLEGHERY
  COUNTY

  
	
   

  	
  MY COMMISION EXPIRES JUNE
  9, 1986

  
	
   

  	
  Member Pennsylvania Association of Notaries

  

 

84

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