Document:

Exhibit 4.2

                             SOUTHERN POWER COMPANY

                                       TO

                              THE BANK OF NEW YORK,
                                   AS TRUSTEE.

                          FIRST SUPPLEMENTAL INDENTURE

                            DATED AS OF JUNE 18, 2002

                                  $575,000,000

                 6.25% SENIOR NOTES, SERIES A DUE JULY 15, 2012

                 6.25% SENIOR NOTES, SERIES B DUE JULY 15, 2012

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                               TABLE OF CONTENTS*

<S>                                                                                                              <C>
Article I Additional Definitions..................................................................................2

         Section 101.          Definitions........................................................................2

Article II 2012 Notes.............................................................................................7

         Section 201.          Establishment......................................................................7
         Section 202.          Aggregate Principal Amount.........................................................7
         Section 203.          Payment of Principal and Interest..................................................7
         Section 204.          Denominations......................................................................8
         Section 205.          Global Securities and Certificated Securities......................................8
         Section 206.          Form of Securities................................................................10
         Section 207.          Transfer and Exchange.............................................................10

Article III......................................................................................................15

         Section 301.          Optional Redemption...............................................................15

Article IV Covenants.............................................................................................15

         Section 401.          Reporting Obligations.............................................................15
         Section 402.          Limitation on Asset Sales.........................................................17
         Section 403.          Limitation on Liens...............................................................17
         Section 404.          Restrictions on Subsidiary Indebtedness...........................................19
         Section 405.          Minimum Contract Maintenance Covenant.............................................19

Article V Additional Events of Default...........................................................................19

         Section 501.          Additional Events of Default......................................................19

Article VI Covenant Defeasance...................................................................................19

         Section 601.          Defeasance of Certain Obligations.................................................19

Article VII Miscellaneous Provisions.............................................................................21

         Section 701.          Recitals by Company...............................................................21
         Section 702.          Ratification and Incorporation of Original Indenture..............................21
         Section 703.          Executed in Counterparts..........................................................21
         Section 704.          Legends...........................................................................21

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

<PAGE>

         THIS FIRST SUPPLEMENTAL INDENTURE is made as of the 18th day of June,
2002, between SOUTHERN POWER COMPANY, a corporation duly organized and existing
under the laws of the state of Delaware (herein called the "Company"), having
its principal office at 270 Peachtree Street, N.W., Atlanta, Georgia 30303 and
THE BANK OF NEW YORK, a banking corporation, duly organized and existing under
the laws of the state of New York, having its principal corporate trust office
at 101 Barclay Street, 21 West, New York, New York 10286, as Trustee (herein
called the "Trustee").

                              W I T N E S S E T H:

         WHEREAS, the Company has heretofore entered into a Senior Note
Indenture, dated as of June 1, 2002 (the "Original Indenture"), with The Bank of
New York;

         WHEREAS, the Original Indenture is incorporated herein by this
reference and the Original Indenture, as supplemented by this First Supplemental
Indenture, is herein called the "Indenture";

         WHEREAS, under the Original Indenture, a new series of unsecured senior
debentures, notes or other evidences of indebtedness (the "Senior Notes") may at
any time be established by the Board of Directors of the Company in accordance
with the provisions of the Original Indenture and the terms of such series may
be described by a supplemental indenture executed by the Company and the
Trustee;

         WHEREAS, the Company proposes to create under the Indenture a series of
Senior Notes to be designated the "6.25% Senior Notes, Series A due July 15,
2012" (the "Series A Notes") and a series of Senior Notes to be designated the
"6.25% Senior Notes, Series B due July 15, 2012" (the "Series B Notes"; and
together with the Series A Notes the "2012 Notes"), the form and substance of
the 2012 Notes and the terms, provisions and conditions thereof to be set forth
as provided in the Original Indenture and this First Supplemental Indenture;

         WHEREAS, additional Senior Notes of other series hereafter established,
except as may be limited in the Original Indenture as at the time supplemented
and modified, may be issued from time to time pursuant to the Indenture as at
the time supplemented and modified; and

         WHEREAS, all conditions necessary to authorize the execution and
delivery of this First Supplemental Indenture and to make it a valid and binding
obligation of the Company have been done or performed.

         NOW, THEREFORE, in consideration of the agreements and obligations set
forth herein and for other good and valuable consideration, the sufficiency of
which is hereby acknowledged, the parties hereto hereby agree as follows:

                                       53
<PAGE>

                               Article I

                             Additional Definitions

Section 101.     Definitions. The following defined terms used herein shall,
unless the context otherwise requires, have the meanings specified below.
Capitalized terms used herein for which no definition is provided herein shall
have the meanings set forth in the Original Indenture.

         "Additional Interest" shall have the meaning assigned to it in the
Registration Rights Agreement.

         "Additional Interest Event" shall have the meaning assigned to it in
the Registration Rights Agreement.

         "Affiliate Subordinated Indebtedness" means the Southern Subordinated
Note and any other borrowings by the Company from Southern, or an affiliate of
Southern, provided that such borrowings are subordinated on terms substantially
similar to the terms of subordination set forth in the Southern Subordinated
Note.

         "Asset Sale" means any sale, lease, sale and leaseback transfer,
conveyance or other disposition of any assets including by way of the issue by
the Company or any of its Subsidiaries of equity interests in such Subsidiaries
which own any assets, except (a) in the ordinary course of business to the
extent that such property is worn out or is no longer useful or necessary in
connection with the operation of the Company's business or sale of inventory,
(b) if, prior to such conveyance or disposition, each Rating Agency provides a
Ratings Reaffirmation of the 2012 Notes after giving effect to such transaction,
or (c) sale and leaseback or similar transfers of assets (other than Existing
Assets).

         "Clearstream" means Clearstream Banking, Societe Anonyme, or any
successor securities clearing agency.

         "Consolidated Tangible Assets" means, at any date of determination, the
total assets of the Company and its Subsidiaries determined in accordance with
GAAP, excluding, however, from the determination of total assets (a) goodwill,
organizational expenses, research and product development expenses, trademarks,
trade names, copyrights, patents, patent applications, licenses and rights in
any thereof, and other similar intangibles, (b) all deferred charges or
unamortized debt discount and expenses, (c) all reserves carried and not
deducted from assets, (d) securities which are not readily marketable, (e) cash
held in sinking or other analogous funds established for the purpose of
redemption, retirement or prepayment of capital stock or other equity interests
or debt, (f) any write-up in the book value of any assets resulting from a
revaluation thereof subsequent to March 31, 2002, and (g) any items not included
in clauses (a) through (f) above which are treated as intangibles in conformity
with GAAP, plus the aggregate net book value of all asset sales or dispositions
made by the Company and any of its Subsidiaries since the Original Issue Date of
the 2012 Notes to the extent that the proceeds thereof or other consideration
received therefor are not invested or reinvested in a Permitted Business, or are
not retained by the Company or its Subsidiaries.

                                       2
<PAGE>

         "Contracted Operating Cash Flow" means the projection done at the end
of each fiscal quarter of the next four fiscal quarters of the Company's and its
Subsidiaries' (other than Unrestricted Subsidiaries) total cash flow available
for debt service from fixed-price capacity power contracts, each contract having
a term from initial commencement to expiry of at least five years; provided,
however, that up to 12.5% of the Contracted Operating Cash Flows may be derived
from fixed-price capacity power contracts that have contract terms of at least
two years but less than five years from initial commencement to expiry. The
projection shall be consistent with financial reporting procedures of the
Company. The term fixed-price capacity power contracts includes any power
contract that states the base capacity price on a per unit basis (for example,
in dollars per megawatt) and which may allow for adjustments to that base price
that are generally encompassed within the Company's or the electric generation
industry's commercial expectations for a power contract of a similar duration
(including but not limited to adjustments to accommodate changed capacity
purchase levels, variations in expected or actual construction costs or
demonstrated capability levels, changes in equipment or law and force majeure);
provided, however, that a power contract will not be considered to be a
fixed-price capacity power contract if a material portion of the capacity price
varies based upon a market index for electric capacity or energy, fuel, weather
or other factor that is external to the facility and the transaction between the
Company and its customer. The method of calculating the energy price shall not
be considered in assessing whether a power contract is a fixed-price capacity
power contract.

         "Distribution Compliance Period," with respect to the 2012 Notes, means
the period of 40 consecutive days beginning on and including the later of (i)
the day on which such 2012 Notes are first offered to Persons other than
distributors (as defined in Regulation S under the Securities Act) in reliance
on Regulation S and (ii) the Original Issue Date.

         "DTC" means The Depository Trust Company, the initial Clearing Agency.

         "Euroclear" means Euroclear Bank S.A., as operator of the Euroclear
System or any successor securities clearing agency.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended.

         "Exchange Offer Registration Statement" shall have the meaning assigned
to it in the Registration Rights Agreement.

         "Existing Assets" means the following generating facilities of the
Company and its Subsidiaries: (i) Dahlberg Units 1-10; (ii) Wansley 6 and
Wansley 7; (iii) Goat Rock 1 and Goat Rock 2; (iv) Harris 1 and Harris 2; and
(v) Stanton A.

         "GAAP" means U.S. generally accepted accounting principles.

          "Global Securities" means global certificates representing the 2012
Notes as described in Section 205.

         "Holder" means a registered holder of a 2012 Note.

                                       3
<PAGE>

         "Indebtedness" of any person means (i) all indebtedness of such person
for borrowed money, (ii) all obligations of such person evidenced by bonds,
debentures, notes, or other similar instruments, (iii) all obligations of such
person to pay the deferred purchase price of property or services (other than
trade accounts obtained on normal commercial terms in the ordinary course of
business or practice), (iv) all indebtedness created or arising under any
conditional sale or other title retention agreement with respect to property
acquired by such person (even though the rights and remedies of the seller or
lender under such agreement in the event of default are limited to repossession
or sale of such property), (v) all capital lease obligations of such person that
are required to be accounted for as a capital lease in accordance with GAAP,
(vi) all obligations of the type referred to in clauses (i) through (v) above of
other persons which such person is responsible for as guarantor, and (vii) all
Indebtedness of the type referred to in clauses (i) through (vi) above secured
by (or for which the holder of such Indebtedness has an existing right,
contingent or otherwise, to be secured by) any lien or security interest on
property.

         "Institutional Accredited Investor" has the meaning set forth in
Section 205(a) hereof.

         "Interest Payment Dates" mean July 15 and January 15 of each year.

         "Make-Whole Premium" means, with respect to the 2012 Notes, a
computation as of a date not more than five days prior to the redemption date of
the following:

                  (i)      the average life of the remaining scheduled payments
of principal in respect of outstanding 2012 Notes (the "Remaining Average
Life") as of the redemption date;

                  (ii) the yield to maturity for the United States treasury
         security having an average life equal to the Remaining Average Life and
         trading in the secondary market at the price closest to the principal
         amount thereof (the "Primary Issue") (subject to extrapolation if no
         United States treasury security has an average life equal to the
         Remaining Average Life); and

                  (iii) the discounted present value of the then-remaining
         scheduled payments of principal and interest (but excluding that
         portion of any scheduled payment of interest that is actually due and
         paid on the redemption date) in respect of outstanding 2012 Notes as of
         the redemption date using a discount factor equal to the sum of (x) the
         yield to maturity for the Primary Issue, plus (y) 25 basis points.

         The amount of Make-Whole Premium in respect of 2012 Notes to be
redeemed shall be an amount equal to (x) the discounted present value of such
2012 Notes to be redeemed determined in accordance with clause (iii) above,
minus (y) the unpaid principal amount of such 2012 Notes; provided, however,
that the Make-Whole Premium shall not be less than zero.

         "Original Issue Date" means June 18, 2002.

         "Owner" means each Person who is the beneficial owner of a Global
Security as reflected in the records of the Depository or, if a Depository
participant is not the Owner, then as reflected in the records of a Person
maintaining an account with such Depository (directly or indirectly, in
accordance with the rules of such Depository).

                                       4
<PAGE>

         "Permanent Regulation S Global Security" has the meaning set forth in
Section 205(b).

         "Permitted Business" means a business that is the same as or similar to
our business as of the date that the 2012 Notes are issued under the Indenture,
or any business reasonably related thereto.

         "QIBs" means qualified institutional buyers as defined in Rule 144A.

         "Rating Agencies" mean Moody's Investors Service, Inc. and Standard &
Poor's Ratings Services.

         "Ratings Reaffirmation" means a reaffirmation by a rating agency of the
higher of its minimum investment grade rating or the then current credit ratings
(as applicable) of any of the 2012 Notes outstanding, giving effect to the
transaction giving rise to such request for such reaffirmation.

         "Recourse Indebtedness" means all Indebtedness (other than Affiliate
Subordinated Indebtedness) of the Company and its Subsidiaries (other than
Unrestricted Subsidiaries).

         "Registered Exchange Offer" shall have the meaning assigned to it in
the Registration Rights Agreement

          "Registration Rights Agreement" means the Registration Rights
Agreement,  dated June 18, 2002 among the Company, Lehman Brothers Inc. and
Salomon Smith Barney Inc. relating to the registration of the 2012 Notes
under the Securities Act.

         "Regular Record Date" means, with respect to each Interest Payment
Date, the close of business on the 15th calendar day preceding such Interest
Payment Date.

         "Regulation S" means Regulation S under the Securities Act and any
successor regulation thereto.

          "Rule 144" means Rule 144 under the Securities Act, as such rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the Securities and Exchange Commission.

         "Rule 144A" means Rule 144A under the Securities Act, as such rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the Securities and Exchange Commission.

         "Rule 144A Global Security" means any Series A Note that is to be
traded pursuant to Rule 144A.

         "Securities Act" means the Securities Act of 1933, as amended from time
to time, or any successor legislation.

         "Securities Custodian" means the custodian with respect to a Global
Security (as appointed by the Depository), or any successor Person thereto and
shall initially be the Trustee.

                                       5
<PAGE>

         "Shelf Registration Statement" shall have the meaning assigned to it in
the Registration Rights Agreement.

          "Southern" means The Southern Company.

         "Southern Subordinated Note" means the subordinated promissory note,
dated June 20, 2001, issued by the Company to Southern.

         "Stated Maturity" means July 15, 2012.

         "Subsidiary" means any corporation or other entity of which sufficient
voting stock or other ownership or economic interests having ordinary voting
power to elect a majority of the board of directors (or equivalent body) are at
the time directly or indirectly held by the Company.

         "Temporary Regulation S Global Security" has the meaning set forth in
Section 205(b).

         "Total Capitalization" means the sum of (a) the aggregate of the
capital stock and other equity accounts (including retained earnings and
paid-in-capital) of the Company and its Subsidiaries (other than Unrestricted
Subsidiaries; provided, however, that retained earnings of Unrestricted
Subsidiaries shall be included); (b) all Recourse Indebtedness; and (c)
Affiliate Subordinated Indebtedness.

         "Total Operating Cash Flow" means the projection done at the end of
each fiscal quarter of the next four fiscal quarters of the Company and its
Subsidiaries' (other than Unrestricted Subsidiaries) total cash flow available
for debt service, as projected consistent with the Company's financial reporting
procedures.

         "Transfer Restricted Security" shall have the meaning assigned to it in
the Registration Rights Agreement.

         "Unrestricted Subsidiary" means any Subsidiary of the Company all the
Indebtedness of which (a) is nonrecourse to the Company or any of its
Subsidiaries (other than any other Unrestricted Subsidiary), other than with
respect to stock or other ownership interest of the Company or any of its
Subsidiaries in such Subsidiary, and (b) is not secured by any property of the
Company or any of its Subsidiaries (other than the property of, or stock or
other ownership interest in, an Unrestricted Subsidiary).

         "U.S. Government Obligations" means securities that are (i) direct and
unconditional obligations of the United States of America for the payment of
which its full faith and credit is pledged or (ii) obligations of a Person
controlled or supervised by, and acting as an agency or instrumentality of, the
United States of America, the payment of which is unconditionally guaranteed as
a full faith and credit obligation by the United States of America, which, in
either case are not callable or redeemable at the option of the issuer thereof,
and shall also include a depository receipt issued by a bank or trust company
subject to federal or state supervision or examination with a combined capital
and surplus of at least $100,000,000 as custodian with respect to any such U.S.
Government Obligations or a specific payment of interest on or principal of any
such U.S. Government Obligation held by such custodian for the account of the

                                       6
<PAGE>

holder of a depository receipt, provided that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to the
holder of such depository receipt from any amount received by the custodian in
respect of the U.S. Government Obligation or the specific payment of interest on
or principal of the U.S. Government Obligation evidenced by such depository
receipt.

                                   Article II

                                   2012 Notes

Section 201. Establishment. The Series A Notes shall be designated as the
Company's "6.25% Senior Notes, Series A due July 15, 2012" and the Series B
Notes shall be designated as the Company's "6.25% Senior Notes, Series B due
July 15, 2012". The Series A Notes and the Series B Notes shall be treated for
all purposes under the Indenture as a single class or series of Senior Notes.

Section 202. Aggregate Principal Amount. The Trustee shall authenticate and
deliver (i) Series A Notes for original issue on the Original Issue Date in the
aggregate principal amount of $575,000,000 and (ii) Series B Notes from time to
time thereafter for issue only in exchange for Series A Notes pursuant to the
Exchange Offer Registration Statement in accordance with the Registration Rights
Agreement or pursuant to the Shelf Registration Statement in accordance with the
Registration Rights Agreement, in each case upon a Company Order for
authentication and delivery thereof and satisfaction of Sections 301 and 302 of
the Original Indenture. The aggregate principal amount of the 2012 Notes shall
be initially limited to $575,000,000. All 2012 Notes need not be issued at the
same time and such series may be reopened at any time, without the consent of
any Holder, for issuances of additional 2012 Notes. Any such additional 2012
Notes will have the same interest rate, maturity and other terms as those
initially issued. No further Series A Notes shall be authenticated and delivered
except as provided by Sections 203, 302, 303, 907 or 1107 of the Original
Indenture. The Series A Notes shall be issued in definitive fully registered
form.

         The form of the Trustee's Certificate of Authentication for the 2012
Notes shall be in substantially the form set forth in Exhibit B hereto.

         Each 2012 Note shall be dated the date of authentication thereof and
shall bear interest from the date of original issuance thereof or from the most
recent Interest Payment Date to which interest has been paid or duly provided
for.

Section 203. Payment of Principal and Interest. The principal of the 2012 Notes
shall be due at Stated Maturity (unless earlier redeemed). The unpaid principal
amount of the 2012 Notes shall bear interest at the rate of 6.25% per annum
until paid or duly provided for. Interest shall be paid semi-annually in arrears
on each Interest Payment Date to the Person in whose name the 2012 Notes are
registered on the Regular Record Date for such Interest Payment Date, provided
that interest payable at the Stated Maturity of principal or on a Redemption
Date as provided herein will be paid to the Person to whom principal is payable.

                                       7
<PAGE>

The initial Interest Payment Date shall be January 15, 2003. Any such interest
that is not so punctually paid or duly provided for will forthwith cease to be
payable to the Holders on such Regular Record Date and may either be paid to the
Person or Persons in whose name the 2012 Notes are registered at the close of
business on a Special Record Date for the payment of such defaulted interest to
be fixed by the Trustee ("Special Record Date"), notice whereof shall be given
to Holders of the 2012 Notes not less than ten (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, if any, on which the 2012
Notes shall be listed, and upon such notice as may be required by any such
exchange, all as more fully provided in the Original Indenture.

         Payments of interest on the 2012 Notes will include interest accrued
to, but excluding, the respective Interest Payment Dates. Interest payments for
the 2012 Notes shall be computed and paid on the basis of a 360-day year of
twelve 30-day months. In the event that any date on which interest is payable on
the 2012 Notes is not a Business Day, then payment of the interest payable on
such date will be made on the next succeeding day that is a Business Day, with
the same force and effect as if made on the date the payment was originally
payable.

         Payment of the principal and interest due at the Stated Maturity or
earlier redemption of the 2012 Notes shall be made upon surrender of the 2012
Notes at the Corporate Trust Office of the Trustee, 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. Payments of interest (including interest on
any Interest Payment Date) will be made, subject to such surrender where
applicable, at the option of the Company, (i) by check mailed to the address of
the Person entitled thereto as such address shall appear in the Security
Register or (ii) by wire transfer at such place and to such account at a banking
institution in the United States as may be designated in writing to the Trustee
at least sixteen (16) days prior to the date for payment by the Person entitled
thereto.

         Additional Interest shall accrue on the Transfer Restricted Securities
over and above the interest rate set forth herein at a rate of 0.50% per annum
from and including the date on which any Additional Interest Event shall occur
to, but excluding, the date on which all such Additional Interest Events have
been cured or, if earlier, the date on which the Transfer Restricted Securities
may first be resold in reliance on Rule 144(k). All Additional Interest shall be
paid to the Holders of Transfer Restricted Securities in the same manner and at
the same time as regular payments of interest on the 2012 Notes. In the event
that more than one Additional Interest Events occurs at the same time, the
maximum increase in the interest rate shall be 0.50% per annum.

                Section 204.      Denominations.  The 2012 Notes may be issued
in denominations of $100,000 and integral multiples of $1,000 in excess thereof.

                Section 205.      Global Securities and Certificated Securities.

               (a) General.  The Series A Notes will be resold initially only to
          (i) QIBs in  reliance  on Rule 144A  under the  Securities  Act ("Rule
          144A"),  (ii)  institutional  "accredited  investors"  as such term is
          defined in rule  501(a)(1),  (2),(3) and (7) of Regulation D under the
          Securities  Act (each,  an  "Institutional  Accredited  Investor") and
          (iii) Persons other than U.S.  Persons (as defined in Regulation S) in

                                       8
<PAGE>

          reliance on Regulation S under the  Securities Act  ("Regulation  S").
          Series A Notes may thereafter be transferred  to, among others,  QIBs,
          purchasers in reliance on Regulation S, and  Institutional  Accredited
          Investors in each case,  subject to the  restrictions  on transfer set
          forth herein.

               (b) Global Securities.

                    (i) Form.  Series A Notes initially  resold pursuant to Rule
               144A  shall  be  issued  initially  in the  form  of one or  more
               permanent global Securities in definitive,  fully registered form
               (collectively,  the "Rule  144A  Global  Security")  and Series A
               Notes  initially  resold  pursuant to  Regulation  S and shall be
               issued  initially  in the  form of one or more  temporary  global
               securities in definitive,  fully  registered form  (collectively,
               the  "Temporary  Regulation  S Global  Security"),  in each  case
               without  interest coupons and with the global  securities  legend
               and restricted  securities  legend set forth in Exhibit A hereto,
               which  shall be  deposited  on  behalf of the  purchasers  of the
               Series A Notes represented thereby with the Securities Custodian,
               and  registered in the name of the Depository or a nominee of the
               Depository, duly executed by the Company and authenticated by the
               Trustee as provided in the Indenture. Except as set forth in this
               Section 205,  beneficial  ownership  interests  in the  Temporary
               Regulation  S Global  Security (x) will not be  exchangeable  for
               interests in the Rule 144A Global Security,  the permanent global
               security (the "Permanent  Regulation S Global Security"),  or any
               other  security  without  a  legend  containing  restrictions  on
               transfer  of  such  security  prior  to  the  expiration  of  the
               Distribution  Compliance Period and (y) then may be exchanged for
               interests  in a  Rule  144A  Global  Security  or  the  Permanent
               Regulation  S  Global  Security  only  upon   certification  that
               beneficial  ownership  interests in such  Temporary  Regulation S
               Global  Security  are owned  either by  non-U.S.  persons or U.S.
               persons who purchased  such  interests in a transaction  that did
               not require registration under the Securities Act.

                  The Rule 144A Global Security, the Temporary Regulation S
         Global Security and the Permanent Regulation S Global Security are
         collectively referred to herein as "Global Securities". The aggregate
         principal amount of the Global Securities may from time to time be
         increased or decreased by adjustments made on the records of the
         Trustee and the Depository or its nominee as hereinafter provided.

                    (ii) Book-Entry Provisions. This Section shall apply only to
               a Global Security  deposited with or on behalf of the Depository.
               The Company  shall execute and the Trustee  shall,  in accordance
               with this Section 2.05(b)(ii), authenticate and deliver initially
               one or more Global Securities that (a) shall be registered in the
               name  of the  Depository  for  such  Global  Security  or  Global
               Securities  or the  nominee of such  Depository  and (b) shall be
               delivered by the Trustee to such  Depository  or pursuant to such
               Depository's instructions or held by the Trustee as custodian for
               the Depository.

                                       9
<PAGE>

                  Members of, or participants in, the Depository ("Agent
         Members") shall have no rights under this Indenture with respect to any
         Global Security held on their behalf by the Depository or by the
         Trustee as the custodian of the Depository or under such Global
         Security, and the Company, the Trustee and any agent of the Company or
         the Trustee shall be entitled to treat the Depository as the absolute
         owner of such Global Security for all purposes whatsoever.
         Notwithstanding the foregoing, nothing herein shall prevent the
         Company, the Trustee or any agent of the Company or the Trustee from
         giving effect to any written certification, proxy or other
         authorization furnished by the Depository or impair, as between the
         Depository and its Agent Members, the operation of customary practices
         of such Depository governing the exercise of the rights of a holder of
         a beneficial interest in any Global Security.

                  To the extent a notice or other communication to the
         beneficial owners of the 2012 Notes is required under the Indenture,
         unless and until Certificated Securities shall have been issued to such
         owners, the Trustee shall give all such notices and communications
         specified herein to be given to such owners to the Depository, and
         shall have no obligations to such Owners.

                    (c)  Certificated  Securities.   Series A Notes sold to
         Institutional  Accredited  Investors shall be issued initially in
         the  form  of a  fully  registered,  certificated  Series  A Note
         ("Certificated  Securities").  Except as provided in this Section
         205, owners of beneficial  interests in Global  Securities  shall
         not be entitled  to receive  physical  delivery  of  Certificated
         Securities.

         Global Securities shall be exchangeable for Certificated Securities if
(i) the Depository (x) notifies the Company that it is unwilling or unable to
continue as Depository for the Global Securities and the Company thereupon fails
to appoint a successor Depository within 90 days after receipt of such notice or
(y) has ceased to be a clearing agency registered under the Exchange Act and the
Company thereupon fails to appoint a successor Depository within 90 days after
it becomes aware of such cessation or (ii) there shall have occurred and be
continuing an Event of Default or any event which after notice or lapse of time
or both would be an Event of Default under the Indenture and payment of
principal and interest has been accelerated. The Trustee shall notify the
Depository (in the case of (ii)) and the Holders of any such event. Upon
surrender to the Trustee of the typewritten certificate or certificates
representing the Global Securities by the Depository, accompanied by
registration instructions, the Trustee shall execute and authenticate the
certificates in accordance with the instructions of the Depository. Neither the
Security Registrar nor the Trustee shall be liable for any delay in delivery of
such instructions and may conclusively rely on, and shall be protected in
relying on, such instructions. Upon the issuance of Certificated Securities, the
Trustee shall recognize the Holders of the Certificated Securities as Holders.
The Certificated Securities shall be printed, lithographed or engraved or may be
produced in any other manner as is reasonably acceptable to the Company, as
evidenced by the execution thereof by the Company, and shall bear the legend set
forth on Exhibit A hereto unless the Company informs the Trustee that such
legend is no longer required.

Section 206.      Form of Securities.  The Global Securities and Certificated
Securities shall be substantially in the form attached as Exhibit A thereto.

                                       10
<PAGE>

Section 207.      Transfer and Exchange
                  ---------------------

                    (a) General. The 2012 Notes may not be transferred except in
               compliance  with  the  legend   contained  in  Exhibit  A  unless
               otherwise determined by the Company in accordance with applicable
               law. No service  charge will be made for any transfer or exchange
               of 2012 Notes,  but payment will be required of a sum  sufficient
               to cover any tax or other governmental charge that may be imposed
               in connection therewith.

                    (b)  Transfer and Exchange of Global Securities.  (i) If a
               holder of a beneficial interest in the Rule 144A Global Security
               wishes at any time to exchange its interest  in the Rule 144A
               Global Security for an interest in the Permanent  Regulation S
               Global Security,  or to transfer its interest in the Rule 144A
               Global Security to a person who wishes to take delivery  thereof
               in the form of an interest in the  Permanent Regulation S Global
               Security, such holder may, subject to the rules and procedures of
               the Depository and to the requirements set forth in the following
               sentence, exchange or cause the exchange or transfer or cause the
               transfer of such interest for an equivalent  beneficial interest
               in the Permanent Regulation S Global  Security.  Upon receipt by
               the Trustee, as transfer agent,  of (1)  instructions  given in
               accordance with the Depository  procedures from or on behalf of a
               holder of a beneficial interest in the Rule 144A Global Security,
               directing the Trustee, as transfer  agent, to credit or cause to
               be credited a beneficial interest in the Permanent Regulation S
               Global Security in an amount equal to the beneficial interest in
               the Rule 144A Global Security to be exchanged or transferred, (2)
               a  written order given in accordance with the Depository's
               procedures containing  information  regarding the  Euroclear or
               Clearstream account to be credited  with such  increase and the
               name of such account,  and (3) a  certificate  in the form of
               Exhibit C hereto given by the holder of such beneficial  interest
               stating that the  exchange or transfer of such interest has been
               made pursuant to and in  accordance  with Rule 903 or Rule 904 of
               Regulation S under the Securities  Act, the Trustee, as transfer
               agent,  shall promptly  deliver  appropriate instructions to the
               Depository,  its nominee, or the custodian for the Depository, as
               the case may be, to reduce or reflect on its  records a reduction
               of the Rule  144A  Global Security  by the  aggregate principal
               amount  of the  beneficial interest  in such  Rule  144A  Global
               Security to be so  exchanged or transferred  from the  relevant
               participant,  and the Trustee,  as transfer agent, shall promptly
               deliver appropriate instructions to the Depository, its nominee,
               or the  custodian  for  the  Depository,  as  the case  may  be,
               concurrently with such reduction,  to increase or reflect on its
               records an increase  of the  principal  amount of such  Permanent
               Regulation S Global Security by the aggregate principal amount of
               the beneficial interest in such Rule 144A Global  Security to be
               so  exchanged or transferred,  and to  credit or  cause  to be
               credited  to  the  account  of  the  person specified in  such
               instructions  (who may be  Euroclear  or  Clearstream or another
               agent member of Euroclear or Clearstream or both, as the case may
               be,  acting for and on behalf of them) a  beneficial  interest in
               such  Permanent Regulation  S  Global Security equal to the
               reduction in the principal amount of such Rule 144A Global
               Security.

                                       11
<PAGE>

                    (ii) If a holder of a beneficial  interest in the  Permanent
               Regulation S Global  Security  wishes at any time to exchange its
               interest in the  Permanent  Regulation  S Global  Security for an
               interest in the Rule 144A  Global  Security,  or to transfer  its
               interest  in the  Permanent  Regulation  S Global  Security  to a
               person  who  wishes to take  delivery  thereof  in the form of an
               interest  in the Rule 144A  Global  Security,  such  holder  may,
               subject to the rules and  procedures of Euroclear or  Clearstream
               and the Depository,  as the case may be, and to the  requirements
               set  forth in the  following  sentence,  exchange  or  cause  the
               exchange or transfer or cause the  transfer of such  interest for
               an  equivalent  beneficial  interest  in such  Rule  144A  Global
               Security.  Upon receipt by the Trustee, as transfer agent, of (1)
               instructions given in accordance with the procedures of Euroclear
               or Clearstream and the Depository, as the case may be, from or on
               behalf of a  beneficial  owner of an  interest  in the  Permanent
               Regulation S Global Security  directing the Trustee,  as transfer
               agent, to credit or cause to be credited a beneficial interest in
               the  Rule  144A  Global  Security  in  an  amount  equal  to  the
               beneficial interest in the Permanent Regulation S Global Security
               to be  exchanged  or  transferred,  (2) a written  order given in
               accordance  with the procedures of Euroclear or  Clearstream  and
               the  Depository,  as the  case  may  be,  containing  information
               regarding  the account with the  Depository  to be credited  with
               such increase and the name of such account,  and (3) prior to the
               expiration of the Distribution  Compliance  Period, a certificate
               in the form of  Exhibit  C hereto  given  by the  holder  of such
               beneficial interest and stating that the person transferring such
               interest  in  such   Permanent   Regulation  S  Global   Security
               reasonably  believes that the person  acquiring  such interest in
               the Rule 144A  Global  Security  is a QIB and is  obtaining  such
               beneficial  interest  for its own account or the account of a QIB
               in a transaction  meeting the  requirements  of Rule 144A and any
               applicable  securities  laws of any state of the United States or
               any other  jurisdiction,  the Trustee,  as transfer agent,  shall
               promptly deliver appropriate instructions to the Depository,  its
               nominee, or the custodian for the Depository, as the case may be,
               to reduce or reflect on its records a reduction of the  Permanent
               Regulation S Global Security by the aggregate principal amount of
               the  beneficial  interest in such  Permanent  Regulation S Global
               Security to be exchanged  or  transferred,  and the  Trustee,  as
               transfer agent, shall promptly deliver  appropriate  instructions
               to  the  Depository,  its  nominee,  or  the  custodian  for  the
               Depository, as the case may be, concurrently with such reduction,
               to  increase  or  reflect  on  its  records  an  increase  of the
               principal  amount  of  the  Rule  144A  Global  Security  by  the
               aggregate  principal  amount of the  beneficial  interest  in the
               Permanent  Regulation  S Global  Security to be so  exchanged  or
               transferred, and to credit or cause to be credited to the account
               of  the  person  specified  in  such  instructions  a  beneficial
               interest in the Rule 144A Global  Security equal to the reduction
               in the  principal  amount of the  Permanent  Regulation  S Global
               Security.  After the  expiration of the  Distribution  Compliance
               Period, the certification  requirement set forth in clause (3) of
               the second  sentence of this  Section  207(b)(ii)  will no longer
               apply to such exchanges and transfers.

                    (iii)  Any  beneficial interest in one of the Global
               Securities that is transferred to a person who takes delivery in
               the form of an interest in the other Global Securities will, upon
               transfer,  cease to be an interest in such Global Security  and
               become  an  interest in  the other Global Securities  and,
               accordingly,   will  thereafter  be subject to all transfer

                                       12
<PAGE>

               restrictions  and  other  procedures   applicable  to  beneficial
               interests  in such other Global  Security  Note for as long as it
               remains such an interest.

                    (iv) Beneficial  interests in Temporary  Regulation S Global
               Securities  may be  exchanged  for  interests in Rule 144A Global
               Securities  or Permanent  Regulation S Global  Securities  if (1)
               such exchange  occurs in connection with a transfer of securities
               in  compliance  with Rule  144A,  and (2) the  transferor  of the
               beneficial interest in the Temporary Regulation S Global Security
               first  delivers to the Trustee a written  certificate  (in a form
               satisfactory  to the  Trustee) to the effect that the  beneficial
               interest in the Temporary  Regulation S Global  Security is being
               transferred  to  a  Person  (a)  who  the  transferor  reasonably
               believes  to be a QIB (b)  purchasing  for its own account or the
               account of a QIB in a  transaction  meeting the  requirements  of
               Rule 144A, and (c) in accordance  with all applicable  securities
               laws of the states of the United States and other jurisdictions.

                    (v) During the Distribution  Compliance  Period,  beneficial
               ownership  interests in Temporary  Regulation S Global Securities
               may only be sold,  pledged or  transferred  through  Euroclear or
               Clearstream in accordance with the applicable procedures relating
               to such institutions and only (i) to the Company, (ii) so long as
               such security is eligible for resale  pursuant to Rule 144A, to a
               Person whom the selling holder reasonably  believes is a QIB that
               purchases  for its own  account or for the  account of a QIB in a
               transaction  meeting the  requirements of Rule 144A,  (iii) in an
               offshore  transaction in accordance with Regulation S (other than
               a  transaction  resulting  in  an  exchange  for  interest  in  a
               Permanent  Regulation  S Global  Security),  (iv)  pursuant to an
               exemption from registration  under the Securities Act provided by
               Rule 144 (if applicable) under the Securities Act or (v) pursuant
               to an effective  registration statement under the Securities Act,
               in each case in accordance with any applicable securities laws of
               any state of the United States.

               (c)  Transfer and Exchange of Global Securities and Certificated
                    Securities.

                    (i) In the event that a Global  Security is exchanged  for a
               Certificated   Security  as  provided  in  Section  205(c),  such
               Certificated  Security may be exchanged  or  transferred  for one
               another,  subject to Section 303 of the Original Indenture,  only
               in  accordance   with  such   procedures  as  are   substantially
               consistent  with the  provisions of clauses (b)(i) and (ii) above
               (including the certification requirements intended to ensure that
               such  exchanges or transfers  comply with Rule 144,  Rule 144A or
               Regulation S, as the case may be) and as may be from time to time
               reasonably adopted by the Company.

                    (ii) Upon receipt by the Trustee of a Certificated Security,
               duly  endorsed  or  accompanied  by  appropriate  instruments  of
               transfer, the Trustee shall cancel such Certificated Security and
               cause, or direct the Securities Custodian to cause, in accordance
               with the standing  instructions  and  procedures  existing of the

                                       13
<PAGE>

               Depository and the Securities Custodian,  the aggregate principal
               amount of 2012 Notes represented by the Rule 144A Global Security
               or Permanent Regulation S Global Security,  as applicable,  to be
               increased by the aggregate  principal  amount of the Certificated
               Security to be exchanged and shall credit or cause to be credited
               to the account of the Person  specified  in such  instructions  a
               beneficial interest in the Rule 144A Global Security or Permanent
               Regulation  S  Global  Security,  as  applicable,  equal  to  the
               principal amount of the Certificated  Security so canceled. If no
               Rule 144A Global  Securities  or  Permanent  Regulation  S Global
               Securities,  as  applicable,  are then  outstanding,  the Company
               shall  issue and the Trustee  shall  authenticate,  upon  written
               order of the Company in the form of an Officers'  Certificate,  a
               new Rule 144A Global  Security or  Permanent  Regulation S Global
               Security, as applicable, in the appropriate principal amount.

               (d)  Certificates.  In connection with any transfer  described in
          paragraphs  (b) and (c) of this Section 207, the Trustee shall receive
          a  certificate  of transfer in the form  attached as Exhibit C hereto.
          Additionally,  upon  any  transfer  or  exchange  to an  Institutional
          Accredited  Investor,  the  Company and the  Trustee  shall  receive a
          certificate in the form attached as Exhibit D hereto.

               (e) Transfer Restricted Security.  Upon any sale or transfer of a
          Transfer   Restricted  Security  (including  any  Transfer  Restricted
          Security  represented by a Global Security) pursuant to Rule 144 under
          the Securities Act or an effective  registration  statement  under the
          Securities  Act,  which shall be certified to the Trustee and Security
          Registrar upon which each may conclusively rely:

                    (i)  in  the  case  of  any  Transfer   Restricted  Security
               represented by a Certificated  Security,  the Security  Registrar
               shall  permit  the  Holder  thereof  to  exchange  such  Transfer
               Restricted  Security for a  Certificated  Security  that does not
               bear the legend set forth in  Exhibit A hereto  and  rescind  any
               restriction on the transfer of such Transfer Restricted Security;
               and

                    (ii)  in  the  case  of  any  Transfer  Restricted  Security
               represented  by  a  Global  Security,  such  Transfer  Restricted
               Security  shall not be  required  to bear the legend set forth in
               Exhibit A hereto if all other  interests in such Global Note have
               been or are  concurrently  being sold or transferred  pursuant to
               Rule 144 under the  Securities  Act or pursuant  to an  effective
               registration statement under the Securities Act.

               (f) Registered  Exchange  Offer.  Notwithstanding  the foregoing,
          upon consummation of the Registered  Exchange Offer, the Company shall
          issue and, upon receipt of a Company Order in accordance  with Section
          303 of the Original Indenture, the Trustee shall authenticate Series B
          Notes in  exchange  for Series A Notes  accepted  for  exchange in the
          Registered  Exchange  Offer,  which  Series B Notes shall not bear the
          transfer  restriction  legend  set forth in Exhibit A hereto and shall
          not provide for Additional Interest,  and the Security Registrar shall
          rescind any  restriction  on the  transfer of such Series B Notes,  in
          each  case  unless  the  Holder  of  such  Series  A  Notes  (A)  is a
          broker-dealer  tendering  Series A Notes  acquired  directly  from the

                                       14
<PAGE>

          Company or an "affiliate" (as defined in Rule 144 under the Securities
          Act) of the  Company for its own  account,  (B) is a Person who has an
          arrangement  or  understanding  with any Person to  participate in the
          "distribution"  (within  the  meaning  of the  Securities  Act) of the
          Series B Notes,  (C) is a Person who is an "affiliate"  (as defined in
          Rule 144 under the  Securities  Act) of the Company or (D) will not be
          acquiring  the Series B Notes in the ordinary  course of such Holder's
          business.  The Company shall identify to the Trustee such Holders in a
          written  certification signed by an Officer of the Company and, absent
          certification  from the  Company to such  effect,  the  Trustee  shall
          assume that there are no such Holders.

                                  Article III

                                   Redemption

               Section  301.  Optional  Redemption.   The  2012  Notes will be
 redeemable by the Company  in whole or in part at any time upon not  less than
 30 nor more than 60 days' notice,  at a redemption  price of  100% of the
 principal amount of the 2012 Notes being  redeemed  plus  accrued  interest
 thereto,  if any, to the redemption  date, plus the  Make-Whole Premium.

         In the event of redemption of the 2012 Notes in part only, a new 2012
Note or Notes for the unredeemed portion will be issued in the name or names of
the Holders thereof upon the surrender thereof.

         The 2012 Notes will not have a sinking fund.

         Notice of redemption shall be given as provided in Section 1104 of the
Original Indenture except that any Notice of Redemption shall not specify the
Redemption Price but only the manner of calculation thereof.

         Any redemption of less than all of the 2012 Notes shall, with respect
to the principal thereof, be divisible by $1,000.

                                   Article IV

                                    Covenants

               Section 401. Reporting Obligations.

               (a) General. The Company will furnish to the Trustee: -------

               (i) unless the Company is then filing comparable reports pursuant
          to the  reporting  requirements  of  the  Exchange  Act,  as  soon  as
          practicable  and in any  event  within  45 days  after  the end of the
          first,  second and third quarterly  accounting  periods of each fiscal
          year (commencing with the quarter ending June 30, 2002), its unaudited
          consolidated balance sheet as of the last day of such quarterly period
          and the  related  consolidated  statements  of income  and cash  flows
          during such quarterly  period prepared in accordance with GAAP and (in

                                       15
<PAGE>

          the case of second and third quarterly periods) for the portion of the
          fiscal year ending with the last day of such quarterly period, setting
          forth in each case in comparative form corresponding unaudited figures
          from the preceding fiscal year (except in the case where the preceding
          fiscal year includes  periods prior to the  Company's  formation)  and
          accompanied by (A) a written statement of an authorized representative
          of the Company to the effect  that such  financial  statements  fairly
          represent in all material respects the financial condition and results
          of operations of the Company at and as of their  respective  dates and
          (B) a section  substantially  similar to the "Management's  Discussion
          and  Analysis"  ("MD&A")  section  of an SEC Form  10-Q  (without  any
          comparison to periods prior to the Company's formation);

               (ii)  unless  the  Company  is  then  filing  comparable  reports
          pursuant to the reporting requirements of the Exchange Act, as soon as
          practicable  and in any  event  within  90 days  after the end of each
          fiscal  year  (commencing  with the fiscal year  ending  December  31,
          2002), its  consolidated  balance sheet as of the end of such year and
          the  related  consolidated  statements  of  income,  cash  flows,  and
          retained  earnings  during  such  year  setting  forth in each case in
          comparative form corresponding  figures from the preceding fiscal year
          (except in the case where the preceding  fiscal year includes  periods
          prior to the Company's formation),  accompanied by (A) an audit report
          thereon of a firm of  independent  public  accountants  of  recognized
          national standing and (B) a section  substantially similar to the MD&A
          section of an SEC Form 10-K  (without any  comparison to periods prior
          to the Company's formation).

               (iii) at the time of the  delivery of the report  provided for in
          clause  (ii)  above (or at the time of the  filing  of the  comparable
          report pursuant to the Exchange Act), an officer's  certificate to the
          effect that, to the best of such  officer's  knowledge,  no default or
          event of default  under the 2012 Notes or the  Indenture  has occurred
          and is  continuing  or, if any default or event of default  thereunder
          has  occurred  and is  continuing,  specifying  the  nature and extent
          thereof  and what  action is being taken or is proposed to be taken in
          response thereto; and

               (iv) promptly after the Company  obtains actual  knowledge of the
          occurrence  thereof,  written notice of the occurrence of any event or
          condition  which  constitutes  an event of default,  and an  Officer's
          Certificate  of the Company  specifically  stating  that such event of
          default has  occurred  and setting  forth the details  thereof and the
          action  which is being taken or is  proposed to be taken with  respect
          thereto.

         All such information provided to the Trustee as indicated above also
will be provided by the Trustee upon written request to the Trustee (which may
be a single continuing request), to (x) Holders, (y) holders of beneficial
interests in the 2012 Notes or (z) prospective purchasers of the 2012 Notes or
beneficial interests in the 2012 Notes. The Company will furnish to the Trustee,
upon its request, sufficient copies of all such information to accommodate the
requests of such Holders and prospective holders of beneficial interests in the
2012 Notes.

                                       16
<PAGE>

         Upon the request of any Holder, any holder of a beneficial interest in
the 2012 Notes, or the Trustee (on behalf of a Holder or a holder of a
beneficial interest in the 2012 Notes), we will furnish such information as is
specified in paragraph (d)(4) of Rule 144A to Holders (and to holders of
beneficial interests in the 2012 Notes), prospective purchasers of the 2012
Notes (and of beneficial interests in the Senior Notes) who are QIBs or
"Institutional Accredited Investors" or to the Trustee for delivery to such
Holder or prospective purchasers of the 2012 Notes or beneficial interests
therein, as the case may be, unless, at the time of such request, the Company is
subject to the reporting requirements of Section 13 or 15(d) of the Exchange
Act.

        Section  402.  Limitation on Asset Sales. Exceptfor the sale of the
Company's  properties and assets substantially as an entirety as described in
Article VIII of the Original Indenture,  and other than assets required to be
sold to conform with governmental  regulations,  the Company will not, and will
not permit any of its Subsidiaries  to,  consummate  any Asset Sale,  if the
aggregate  net book value of all such Asset Sales consummated during the most
recent twelve month period would exceed 10% of  Consolidated Tangible Assets as
of the  beginning of the Company's most recently ended full fiscal quarter
preceding such Asset Sale; provided,  however, that any such Asset Sale will be
disregarded  for purposes of the 10% limitation  specified above if the proceeds
thereof (i) are, within 18 months of such Asset Sale,  invested or reinvested by
the  Company or any  Subsidiary in a Permitted  Business,  (ii) are used by the
Company or a Subsidiary to repay Indebtedness of the Company or such Subsidiary
or (iii) are retained by the Company or a Subsidiary.

        Section 403. Limitation on Liens. The Company shall not, and shall
permit any of its Subsidiaries to, issue, assume, guarantee or permit to exist
any Indebtedness for borrowed money secured by any lien on any  property of the
Company or its  Subsidiaries,  whether owned on the date that the 2012 Notes are
issued or thereafter acquired, without in any such case effectively securing the
outstanding  2012 Notes (together  with, if the Company shall so determine, any
other Indebtedness of or guaranteed by the Company ranking equally with the 2012
Notes) equally and ratably with such Indebtedness (but only so long as such
Indebtedness is so secured); provided,  however, that the foregoing restriction
shall not apply to the following liens:

               (i) liens,  if any, in  existence  on the date the 2012 Notes are
          issued;

               (ii)  pledges or deposits in the  ordinary  course of business in
          connection with bids, tenders,  contracts or statutory  obligations or
          to secure surety or performance bonds;

               (iii) liens imposed by law, such as carriers', warehousemen's and
          mechanics' liens, arising in the ordinary course of business;

               (iv) liens for taxes being contested in good faith;

               (v) minor encumbrances, easements or reservations which do not in
          the aggregate  materially adversely affect the value of the properties
          or impair their use;

                                       17
<PAGE>

               (vi) liens on any  property  existing at the time of  acquisition
          thereof by the Company or any of its Subsidiaries;

               (vii) liens on property (other than Existing Assets) securing (a)
          all or any portion of the cost of acquiring, constructing,  altering,
          improving or repairing any real or personal property or  improvements
          used or to be used in connection with such property or (b)
          Indebtedness incurred by the Company or any of its Subsidiaries prior
          to,  at the time  of, or within one year after the later of the
          acquisition, the completion  of construction (including  any
          improvements on an existing property), alteration, improvement, repair
          or the  commencement  of commercial  operation of the property,  which
          Indebtedness  is incurred for the purpose of financing or  refinancing
          all or any part of the  purchase  price,  construction,  improvements,
          alterations or repairs;

               (viii) liens to secure purchase money  Indebtedness not in excess
          of the cost or value of the property acquired;

               (ix) mortgages securing obligations issued by a state,  territory
          or possession of the United  States,  or any political  subdivision of
          any of the  foregoing  or the  District  of  Columbia,  to finance the
          acquisition or construction of property,  and on which the interest is
          not,  in the  opinion of tax  counsel  of  recognized  standing  or in
          accordance  with a ruling  issued  by the  Internal  Revenue  Service,
          includible  in  gross  income  of the  holder  by  reason  of  Section
          103(a)(1)  of the  Internal  Revenue  Code (or any  successor  to such
          provision)  as  in  effect  at  the  time  of  the  issuance  of  such
          obligations;

               (x) other liens to secure  Indebtedness  for borrowed money or in
          connection  with  a  project  financing  (including  a  sale-leaseback
          transaction)  in an aggregate  principal  amount which does not at the
          time such Indebtedness is incurred exceed 20% of Consolidated Tangible
          Assets; or

               (xi)  liens  granted  in  connection  with  extending,  renewing,
          replacing  or  refinancing   (or  successive   extensions,   renewals,
          replacements  or  refinancings)  any of the  Indebtedness  (so long as
          there is no  increase  in the  principal  amount of the  Indebtedness)
          described in clauses (i) through (x) above.

         In the event that the Company or any of its Subsidiaries shall propose
to pledge, mortgage or hypothecate any property, other than as permitted by
clauses (i) through (xi) of the previous paragraph, the Company shall (prior
thereto) give written notice thereof to the Trustee, who shall give notice to
the Holders, and the Company shall, prior to or simultaneously with such pledge,
mortgage or hypothecation, effectively secure all the 2012 Notes equally and
ratable with such Indebtedness. This covenant does not restrict the Company's
ability or the ability of any of its Subsidiaries to pledge, mortgage,
hypothecate or permit to exist any mortgage, pledge or lien upon any assets
(other than an Existing Asset, except to the extent permitted by clauses (i)
through (xi) above) in connection with project financings or otherwise.

                                       18
<PAGE>

          Section 404.  Restrictions on Subsidiary Indebtedness.  Except to the
extent permitted under Section 403 hereof, the Company shall not permit any
Subsidiary  which owns any  Existing  Asset to create or incur or suffer to
exist any Indebtedness for borrowed money.

          Section 405. Minimum Contract Maintenance Covenant.  The Company will
not declare or pay any  dividends or make any other  distributions  (except
dividends  payable or distributions  made in shares of its common stock and
dividends payable in cash in cases where,  concurrently with the payment of
the  dividend,  an amount in cash equal to the  dividend is received by the
Company as a capital  contribution or as the proceeds of the issue and sale
of shares of its common stock) on its common  stock,  or purchase or permit
any of its  Subsidiaries to purchase any shares of its common stock or make
any  payment on Affiliate  Subordinated  Indebtedness,   unless (i)  the
percentage derived from dividing  Contracted  Operating Cash Flows by Total
Operating Cash Flows is at least  0%,  or (ii)  the  ratio of Recourse
Indebtedness to Total Capitalization is 60% or less.

                                   Article V

                          Additional Events of Default

          Section 501.  Additional Events of Default. In accordance with Section
     501  (7) of the  Original  Indenture,  each  of the  following  events,  in
     addition to those provided in Section 501 of the Original Indenture,  shall
     be an Event of Default with respect to the 2012 Notes:

               (a) an event of default,  as  defined  in any of the Company's
          instruments  under which there may be issued, or by which there may be
          secured or  evidenced, of any Indebtedness  of the Company  that has
          resulted  in the acceleration of such  Indebtedness,  or any default
          occurring in payment of any such  Indebtedness at final maturity (and
          after the expiration of any applicable grace periods), other than such
          Indebtedness the principal of which does not  individually,  or in the
          aggregate, exceed $50,000,000; or

               (b) one or more final judgments,  decrees or orders of any court,
          tribunal,  arbitrator,  administrative  or other  governmental body or
          similar  entity  for the  payment  of money is  rendered  against  the
          Company or any of its  properties in an aggregate  amount in excess of
          $50,000,000  (excluding  the  amount  covered by  insurance)  and such
          judgment, decree or order remains unvacated, undischarged, unsatisfied
          and unstayed  for more than 60  consecutive  days,  except while being
          contested in good faith by appropriate proceedings.

                                   Article VI

                               Covenant Defeasance

               Section 601. Defeasance of Certain  Obligations.  The Company may
 omit to comply with any term, provision or condition set forth in Sections
 402 through 405 of this First Supplemental Indenture and Section  501(4)(with
 respect to Sections 403 through 405) of the Original Indenture and Sections

                                       19
<PAGE>

 501(a) and 501(b) of this First Supplemental Indenture shall be deemed not to
 be Events of Default on the 123rd day after the deposit referred to in
 subparagraph (a) hereof if:

               (a)  with   reference  to  this  Section  601,  the  Company  has
          irrevocably  deposited or caused to be irrevocably  deposited with the
          Trustee (or another trustee satisfying the requirements of Section 611
          of the  Original  Indenture)  as trust  funds in  trust,  specifically
          pledged as security for, and  dedicated  solely to, the benefit of the
          Holders  of the 2012  Notes,  (i)  money in an  amount,  or (ii)  U.S.
          Government  Obligations  which  through the  payment of  interest  and
          principal in respect  thereof in accordance  with their terms (without
          reinvestment)  will provide not later than one day before the due date
          of any payment  referred to in clause (x) of this Section 601 money in
          an amount, or (iii) a combination thereof,  sufficient, in the opinion
          of a nationally  recognized  firm of  independent  public  accountants
          expressed in a written certification thereof delivered to the Trustee,
          to pay and  discharge,  after payment of all federal,  state and local
          taxes or other charges and  assessments in respect  thereof payable by
          the  Trustee,  (x)  the  principal  of,  premium,  if  any,  and  each
          installment of principal and interest on the Outstanding 2012 Notes at
          the Stated  Maturity of such  principal or installment of principal or
          interest;

               (b) the  Company has  delivered  to the Trustee (i) an Opinion of
          Counsel to the effect that Holders will not recognize income,  gain or
          loss for  federal  income tax  purposes  as a result of the  Company's
          exercise of its option  under this  Section 601 and will be subject to
          federal  income tax on the same  amount and in the same  manner at the
          same times as would have been the case if such deposit, defeasance and
          discharge  had not  occurred,  and (ii) an  Opinion  of Counsel to the
          effect that the  defeasance  trust does not  constitute an "investment
          company"  under the  Investment  Company Act of 1940, as amended,  and
          after the passage of 123 days  following  the deposit,  the trust fund
          will  not be  subject  to  the  effect  of  Section  547  of the  U.S.
          Bankruptcy Code or Section 15 of the New York Debtor and Creditor Law;

               (c)  immediately  after  giving  effect to such  deposit on a pro
          forma  basis,  no Event of Default,  or event that after the giving of
          notice  or lapse of time or both  would  become  an Event of  Default,
          shall have  occurred and be  continuing on the date of such deposit or
          during  the  period  ending  on the  123rd  day after the date of such
          deposit,  and such  deposit  shall not result in a breach or violation
          of, or constitute a default under,  any other  agreement or instrument
          to which the Company is a party or by which the Company is bound; and

               (d) The Company shall have  delivered to the Trustee an Officers'
          Certificate and an Opinion of Counsel (which Opinion of Counsel may be
          subject to customary  assumptions and  exclusions),  each stating that
          all conditions precedent with respect to such covenant defeasance have
          been complied with.

                                       20
<PAGE>

                                  Article VII

                            Miscellaneous Provisions

               Section  701.  Recitals  by Company.  The recitals in this First
Supplemental Indentur  are made by the Company only and not by the Trustee, and
all of the provisions contained in the Original Indenture in respect of the
rights, privileges, immunities, powers and duties of the Trustee  shall be
applicable in respect of 2012 Notes and of this First Supplemental Indenture as
fully and with like effect as if set forth herein in full.

               Section  702.  Ratification and Incorporation of Original
Indenture.  As supplemented hereby,  the Original Indenture is in all respects
ratified and confirmed, and the Original Indenture and this First Supplemental
Indenture shall be read, taken and construed as one and the same instrument.

               Section 703.  Executed in Counterparts.  This First Supplemental
Indenture may be simultaneously executed in several counterparts, each of
which shall be deemed to be an original, and such counterparts shall together
constitute but one and the same instrument.

               Section  704.  Legends. Except as determined by the Company in
accordance with applicable law,  each  2012  Note shall bear the applicable
legends relating to restrictions on transfer pursuant to the securities laws in
substantially  the form set forth on Exhibit A hereto.

                                       21
<PAGE>

         IN WITNESS WHEREOF, each party hereto has caused this instrument to be
signed in its name and behalf by its duly authorized signatories, all as of the
day and year first above written.

                                        SOUTHERN POWER COMPANY

                                       By:
                                      Name:
                                     Title:

Attest:

-----------------------------
Name:
Title:

                                      THE BANK OF NEW YORK

                                       By:
                                      Name:
                                     Title:

Attest:

-----------------------------
Name:
Title:

<PAGE>

                                    EXHIBIT A

                            FORM OF SERIES [A/B] NOTE

                                          [Rule 144A Global Security]
                                       [Regulation S Global Security]
                                              [Certificated Security]

                       [FORM OF FACE OF INITIAL SECURITY]

                           [Global Securities Legend]

                  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"),
NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC) (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                  TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR
THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OR PORTIONS OF THIS GLOBABL
SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS
SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

                  [FOR REGULATION S GLOBAL NOTE ONLY] UNTIL 40 DAYS AFTER THE
COMMENCEMENT OF THE OFFERING, AN OFFER OR SALE OF NOTES WITHIN THE UNITED STATES
BY A DEALER (AS DEFINED IN THE U.S. SECURITIES ACT) MAY VIOLATE THE REGISTRATION
REQUIREMENTS OF THE U.S. SECURITIES ACT IF SUCH OFFER OR SALE IS MADE OTHERWISE
THAN IN ACCORDANCE WITH THE RULE 144A THEREUNDER.]

                         [Restricted Securities Legend]

                  THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS

                                       EX.A-1

<PAGE>

AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE
EXEMPTION THEREFROM AND IN ANY EVENT MAY BE SOLD OR OTHERWISE TRANSFERRED ONLY
IN ACORDANCE WITH THE INDENTURE, COPIES OF WHICH ARE AVAILABLE FOR INSPECTION AT
THE CORPORATE TRUST OFFICE OF THE TRUSTEE IN ATLANTA, GEORGIA.

                  EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIFED THAT THE
SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. EACH HOLDER OF THIS NOTE
REPRESENTS TO SOUTHERN POWER COMPANY THAT (a) SUCH HOLDER WILL NOT SELL, PLEDGE
OR OTHERWISE TRANSFER THIS NOTE (WITHOUT THE CONSENT OF SOUTHERN POWER COMPANY)
OTHER THAN (I) TO SOUTHERN POWER COMPANY, (II) IN THE UNITED STATES TO A
QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT)
IN A TRANSACTION COMPLYING WITH THE REQUIREMENTS OF RULE 144A UNDER THE
SECURITIES ACT, (III) IN ACCORDANCE WITH RULE 144 UNDER THE SECURITIES ACT, (IV)
OUTSIDE THE UNITED STATES IN A TRANSACTION MEETING THE REQUIREMENTS OF
REGULATION S UNDER THE SECURITIES ACT, (V) TO AN INSTITUTIONAL ACCREDITED
INVESTOR (AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER
THE SECURITIES ACT) THAT, PRIOR TO SUCH TRANSFER, FURNISHES THE TRUSTEE AND
SOUTHERN POWER COMPANY A LETTER CONTAINING CERTAIN REPRESENTATIONS AND
AGREEMENTS RELATING TO THE TRANSFER OF THIS NOTE (THE FORM OF WHICH CAN BE
OBTAINED FROM THE TRUSTEE), (VI) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT SUBJECT IN THE CASE OF CLAUSES (ii),
(iii), OR (iv) TO THE RECEIPT BY SOUTHERN POWER COMPANY OF AN OPINION OF COUNSEL
OF SUCH OTHER EVIDENCE ACCEPTABLE TO SOUTHERN POWER COMPANY THAT SUCH RESALE,
PLEDGE OR TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT OR (VII) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT, AND
THAT (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY
PURCHASER OF THIS NOTE OF THE RESALE RESTRICTIONS REFERRED TO HEREIN AND DELIVER
TO THE TRANSFEREE (OTHER THAN A QUALIFIED INSTITUTIONAL BUYER) PRIOR TO THE SALE
A COPY OF THE TRANSFER RESTRICTIONS APPLICABLE HERETO (COPIES OF WHICH MAY BE
OBTAINED FROM THE TRUSTEE).

                 [Temporary Regulation S Global Security Legend]

                  EXCEPT AS SET FORTH BELOW, BENEFICIAL OWNERSHIP INTERESTS IN
THIS TEMPORARY REGULATION S GLOBAL SECURITY WILL NOT BE EXCHANGEABLE FOR
INTERESTS IN THE PREMANENT REGULATION S GLOBAL SECURITY OR ANY OTHER SECURITY
REPRESENTING AN INTEREST IN THE SECURITIES REPRESENTED HEREBY WHICH DO NOT
CONTAIN A LEGEND CONTAINING RESTRICTIONS ON TRANSFER, UNTIL THE EXPIRATION OF

                                       Ex. A-2
<PAGE>

THE "40-DAY DISTRIBUTION COMPLIANCE PERIOD (WITHIN THE MEANING OF RULE 903(c)(3)
OF REGULATION S UNDER THE SECURITIES ACT) AND THEN ONLY UPON CERTIFICATION IN
FORM REASONABLY SATISFACTORY TO THE TRUSTEE THAT SUCH BENEFICIAL INTERESTS ARE
OWNED EITHER BY NON-U.S. PERSONS OR U.S. PERSONS WHO PURCHASED SUCH INTERESTS IN
A TRANSACTION THAT DID NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT. DURING
SUCH 40-DAY DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL OWNERSHIP INTEREST IN
THIS TEMPORARY REGULATION S GLOBABL SECURITY MAY ONLY BE SOLD, PLEDGED OR
TRANSFERRED THROUGH EUROCLEAR BANK S.A./N.A., AS OPERATOR OF THE EUROCLEAR
SYSTEM OR CLEARSTREAM BANKING, SOCIETE ANONYME AND ONLY (I) TO THE COMPANY, (II)
IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT)
IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (III) OUTSIDE THE UNITED
STATES IN A TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, OR
(IV) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT,
IN EACH OF CASE (I) THROUGH (IV) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES
LAWS OF ANY STATE OF THE UNITED STATES. HOLDERS OF INTERESTS IN THIS TEMPORARY
REGULATION S GLOBABL SECURITY WILL NOTIFY ANY PURCHASER OF THIS SECURITY OF THE
RESALE RESTRICTIONS REFERRED TO ABOVE, IF THEN APPLICABLE.

BENEFICIAL INTERESTS IN THIS TEMPORARY REGULATIONS S GLOBAL SECURITY MAY BE
EXCHANGED FOR INTERESTS IN A RULE 144A GLOBAL SECURITY ONLY IF (1) SUCH EXCHANGE
OCCURS IN CONNECTION WITH A TRANSFER OF THE NOTES IN COMPLIANCE WITH RULE 144A,
AND (2) THE TRANSFEROR OF THE REGULATION S GLOBAL SECURITY FIRST DELIVERS TO THE
TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS CERTIFICATE) TO THE
EFFECT THAT THE REGULATION S GLOBAL SECURITY BEING TRANSFERRED TO A PERSON (A)
WHO THE TRANSFEROR REASONABLY BELIEVES TO BE A QUALIFIED INSTITUTIONAL BUYER
WITHIN THE MEANING OF RULE 144A (B) PURCHASING FOR ITS OWN ACCOUNT OR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, AND (C) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES
LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS.

BENEFICIAL INTEREST IN A RULE 144A GLOBAL SECURITY MAY BE TRANSFERRED TO A
PERSON WHO TAKES DELIVERY IN THE FORM OF AN INTEREST IN THE REGULATION S GLOBAL
SECURITY, WHETHER BEFORE OR AFTER THE EXPIRATION OF THE 40-DAY DISTRIBUTION
COMPLIANCE PERIOD, ONLY IF THE TRANSFEROR FIRST DELIVERS TO THE TRUSTEE A
WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS CERTIFICATE) TO THE EFFECT
THAT IF SUCH TRANSFER IS BEING MADE IN ACCORDANCE WITH RULE 903 OR 904 OF
REGULATION S OR RULE 144 (IF AVAILABLE) AND THAT, IF SUCH TRANSFER OCCURS PRIOR

                                       Ex.. A-3
<PAGE>

TO THE EXPIRATION OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD, THE INTEREST
TRANSFERRED WILL BE HELD IMMEDIATELY THEREAFTER THROUGH EUROCLEAR BANK S.A./N.A.
OR CLEARSTREAM BANKING SOCIETE ANONYME.

                        [Certificated Securities Legend]

                  IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO
THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH
TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH
THE FOREGOING RESTRICTIONS.

NO. ____                                                 CUSIP NO. _________

                             SOUTHERN POWER COMPANY
                         6.25% SENIOR NOTE SERIES [A/B]
                                DUE JULY 15, 2012

Principal Amount:             $575,000,000
Regular Record Date:          15th calendar day prior to Interest Payment Date
Original Issue Date:          June 18, 2002
Stated Maturity:              July 15, 2012
Interest Payment Dates:       July 15 and January 15
Interest Rate:                6.25% per annum
Authorized Denomination:      $100,000 and integrals of $1,000 in excess thereof

         Southern Power Company, a Delaware corporation (the "Company", which
term includes any successor corporation under the Indenture referred to on the
reverse hereof), for value received, hereby promises to pay to
_____________________________________, or registered assigns, the principal sum
of _________ DOLLARS ($__________) [or such other amount as is indicated on

                                       Ex.A-4
<PAGE>

Schedule A hereto]2 on the Stated Maturity shown above (or upon earlier
redemption), and to pay interest thereon from the Original Issue Date shown
above, or from the most recent Interest Payment Date to which interest has been
paid or duly provided for, semi-annually in arrears on each Interest Payment
Date as specified above, commencing on January 15, 2003 and on the Stated
Maturity (or upon earlier redemption) at the rate per annum shown above until
the principal hereof is paid or made available for payment and on any overdue
principal and on any overdue installment of interest. The interest so payable,
and punctually paid or duly provided for, on any Interest Payment Date (other
than an Interest Payment Date that is the Stated Maturity or on a Redemption
Date) will, as provided in such Indenture, be paid to the Person in whose name
this Note (the "Note") is registered at the close of business on the Regular
Record Date as specified above next preceding such Interest Payment Date,
provided that any interest payable at Stated Maturity or on any Redemption Date
will be paid to the Person to whom principal is payable. Except as otherwise
provided in the Indenture, 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 Note 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 Notes 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, if any, on which
the Notes of this series shall be listed, and upon such notice as may be
required by any such exchange, all as more fully provided in the Indenture.

         Payments of interest on this Note will include interest accrued to but
excluding the respective Interest Payment Dates. Interest payments for this Note
shall be computed and paid on the basis of a 360-day year of twelve 30-day
months. In the event that any date on which interest is payable on this Note is
not a Business Day, then payment of the interest payable on such date will be
made on the next succeeding day that is a Business Day, with the same force and
effect as if made on the date the payment was originally payable. A "Business
Day" shall mean any day other than a Saturday or a Sunday or a day on which
banking institutions in New York City are authorized or required by law or
executive order to remain closed or a day on which the Corporate Trust Office of
the Trustee is closed for business.

         Payment of the principal of and interest due at the Stated Maturity or
earlier redemption of this Note shall be made upon surrender of this Note at the
Corporate Trust Office of the Trustee, 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. Payment of interest (including interest on an Interest
Payment Date) will be made, subject to such surrender where applicable, at the
option of the Company, (i) by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register or (ii) by wire
transfer at such place and to such account at a banking institution in the
United States as may be designated in writing to the Trustee at least 16 days
prior to the date for payment by the Person entitled thereto.

         REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET
FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES
HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

__________________________

*Insert in the Rule 144A Global Security and the Regulation S Global Security
only.

                                       Ex.A-5
<PAGE>

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

                                       EX.A-6
<PAGE>

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

Dated:  June __, 2002.

                                       SOUTHERN POWER COMPANY

                                       By:
                                      Name:
                                     Title:

Attest:

                                       EX.A-7
<PAGE>

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Senior Notes referred to in the within-mentioned
Indenture.

                                   THE BANK OF NEW YORK,
                                   as Trustee

                                       By:
                                             Authorized Signatory

                                       EX.A-8
<PAGE>

                             (Reverse Side of Note)

         This Note is one of a duly authorized issue of Senior Notes of the
Company (the "Notes"), issued and issuable in one or more series under a Senior
Note Indenture, dated as of June 1, 2002, as supplemented (the "Indenture"),
among the Company and The Bank of New York, Trustee (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, limitation of rights, duties and immunities thereunder of the
Company, the Trustee and the Holders of the Notes issued thereunder and of the
terms upon which said Notes are, and are to be, authenticated and delivered.
This Note is one of the series designated on the face hereof as 6.25% Senior
Notes Series [A/B] due July 15, 2012 initially issued in the aggregate principal
amount of $575,000,000. Capitalized terms used herein for which no definition is
provided herein shall have the meanings set forth in the Indenture.

         This Note will be redeemable by the Company in whole or in part at any
time upon not less than 30 nor more than 60 days' notice, at a redemption price
equal to 100% of the principal amount of the this Note being redeemed plus
accrued interest on the principal amount of this Note, if any, to the redemption
date, plus the Make-Whole Premium.

         In the event of redemption of this Note in part only, a new Note or
Notes for the unredeemed portion will be issued in the name or names of the
Holders thereof upon the surrender thereof.

         This Note will not have a sinking fund.

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

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Notes of each series to be affected
under the Indenture at any time by the Company and the Trustee with the consent
of the Holders of not less than a majority in principal amount of the Notes at
the time Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Notes of each series at the time Outstanding, on behalf of the Holders of
all Notes of such series, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Note shall
be conclusive and binding upon such Holder and upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Note.

         No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place and rate, and in the coin or currency, herein prescribed.

                                       Ex.A-9
<PAGE>

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note is registrable in the Security Register,
upon surrender of this Note for registration of transfer at the office or agency
of the Company for such purpose, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar and duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Notes of this series, of
authorized denominations and of like tenor and for the same aggregate principal
amount, will be issued to the designated transferee or transferees. 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 Note for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

         The Notes of this series are issuable only in registered form without
coupons in denominations of $100,000 and integral multiples of $1,000 in excess
thereof. As provided in the Indenture and subject to certain limitations therein
set forth, Notes of this series are exchangeable for a like aggregate principal
amount of Notes of this series of a different authorized denomination, as
requested by the Holder surrendering the same upon surrender of the Note or
Notes to be exchanged at the office or agency of the Company.

         This Note shall be governed by, and construed in accordance with, the
internal laws of the State of New York.

                                       Ex.A-10
<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM- as tenants in            UNIF GIFT MIN ACT- _______ Custodian ________
         common                                        (Cust)           (Minor)
TEN ENT- as tenants by the
         entireties                                     under Uniform Gifts to
 JT TEN- as joint tenants                               Minors Act
         with right of
         survivorship and                          ________________________
         not as tenants                                      (State)
         in common

                    Additional abbreviations may also be used
                          though not on the above list.

         FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto
___________________ (please insert Social Security or other identifying number
of assignee)

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

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

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

Dated:
       --------------------         ----------------------------------------

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

                                       Ex. A-11
<PAGE>

         In connection with any transfer of any of the Series A Notes evidenced
by this certificate, the undersigned confirms that such Series A Notes are
being:

CHECK ONE BOX BELOW

         (1)      ___      exchanged for the undersigned's own account without
                           transfer; or

         (2)      ___      transferred to a person whom the undersigned
                           reasonably believes to be a "qualified institutional
                           buyer" as defined in Rule 144A under the Securities
                           Act of 1933 who is purchasing such Series A Notes for
                           such buyer's own account or the account of a
                           "qualified institutional buyer" in a transaction
                           meeting the requirements of Rule 144A under the
                           Securities Act of 1933 and any applicable securities
                           laws of any state of the United States or any other
                           jurisdiction; or

         (3)      ___      exchanged or transferred pursuant to and in
                           compliance with Rule 903 or 904 of
                           Regulation S under the Securities Act of 1933; or

         (4)      ___      exchanged or transferred to an institutional
                           "accredited investor" within the meaning of Rule
                           501(a)(1), (2), (3) or (7) of Regulation D under the
                           Securities Act pursuant to Rule 144A (and based upon
                           an opinion of counsel if the Company or the Trustee
                           so requests) and, to the knowledge of the transferor
                           of the Series A Notes, such institutional accredited
                           investor to whom such Note is to be transferred is
                           not an "affiliate" (as defined in Rule 144 under the
                           Securities Act) of the Company; or

         (5)   _____       transferred pursuant to another available
                           exemption from the registration requirements of the
                           Securities Act of 1933.

         Unless one of the boxes is checked, the Trustee will refuse to register
any of the Series A Notes evidenced by this certificate in the name of any
person other than the registered Holder thereof; provided, however, that if box
(3), (4) or (5) is checked, the Company may require, prior to registering any
such transfer of the Series A Notes, such legal opinions, certifications and
other information as the Company has reasonably requested to confirm that such
transfer is being made pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act of 1933, such as
the exemption provided by Rule 144 under such Act; provided, further, that if
box (2) is checked, the transferee must also certify that it is a qualified
institutional buyer as defined in Rule 144A.

                                       Signature

                                       EX. A-12
<PAGE>

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

         The undersigned represents and warrants that it is purchasing this
Series A Note for its own account or an account with respect to which it
exercises sole investment discretion and that it and any such account is a
"qualified institutional buyer" within the meaning of Rule 144A under the
Securities Act of 1933, and is aware that the sale to it is being made in
reliance on Rule 144A and acknowledges that it has received such information
regarding the Company as the undersigned has requested pursuant to Rule 144A or
has determined not to request such information and that it is aware that the
transferor is relying upon the undersigned's foregoing representations in order
to claim the exemption from registration provided by Rule 144A.

Date:
      ------------------------------

                 NOTICE: To be executed by an executive officer.

                                       EX. A-13
<PAGE>

                                   SCHEDULE A

         The initial aggregate principal amount of Series A Notes evidenced by
the Certificate to which this Schedule is attached is $___________. The
notations on the following table evidence decreases and increases in the
aggregate principal amount of Series A Notes evidenced by such Certificate.

<TABLE>
<CAPTION>

                                                      Principal Amount of
                                                       Series A Notes
<S>                      <C>                          <C>                     <C>
Decrease in Principal     Increase in Principal      Remaining After Such     Notation by
Amount of Series A Notes  Amount of Series A Notes   Decrease or Increase       Registrar
------------------------  ------------------------   -------------------     -----------

</TABLE>

                                       Ex. A-14
<PAGE>

                                    EXHIBIT B

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Senior Notes referred to in the within-mentioned
Indenture.

                                      THE BANK OF NEW YORK,
                                      as Trustee

                                       By:-------------------------------------
                                              Authorized Signatory

                                       EX.  B-1
<PAGE>

                                    EXHIBIT C

                          FORM OF TRANSFER CERTIFICATE

         In connection with any transfer of any of the Series A Notes evidenced
by this certificate, the undersigned confirms that such Series A Notes are
being:

CHECK ONE BOX BELOW

         (1)      ____     exchanged for the undersigned's own account without
                           transfer; or

         (2)      _____    transferred to a person whom the undersigned
                           reasonably believes to be a "qualified institutional
                           buyer" as defined in Rule 144A under the Securities
                           Act of 1933 who is purchasing such Series A Notes for
                           such buyer's own account or the account of a
                           "qualified institutional buyer" in a transaction
                           meeting the requirements of Rule 144A under the
                           Securities Act of 1933 and any applicable securities
                           laws of any state of the United States or any other
                           jurisdiction; or

         (3)    ____       exchanged or transferred pursuant to and in
                           compliance with Rule 903 or 904 of
                           Regulation S under the Securities Act of 1933; or

         (4)     ____      exchanged or transferred to an institutional
                           "accredited investor" within the meaning of Rule
                           501(a)(1), (2), (3) or (7) of Regulation D under the
                           Securities Act pursuant to Rule 144A (and based upon
                           an opinion of counsel if the Company or the Trustee
                           so requests) and, to the knowledge of the transferor
                           of the Series A Notes, such institutional accredited
                           investor to whom such Note is to be transferred is
                           not an "affiliate" (as defined in Rule 144 under the
                           Securities Act) of the Company; or

         (5)    ____       transferred pursuant to another available
                           exemption from the registration requirements of the
                           Securities Act of 1933.

         Unless one of the boxes is checked, the Trustee will refuse to register
any of the Series A Notes evidenced by this certificate in the name of any
person other than the registered Holder thereof; provided, however, that if box
(3) or (4) is checked, the Company may require, prior to registering any such
transfer of the Series A Notes, such legal opinions, certifications and other
information as the Company has reasonably requested to confirm that such
transfer is being made pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act of 1933, such as
the exemption provided by Rule 144 under such Act; provided, further, that if
box (2) is checked, the transferee must also certify that it is a qualified
institutional buyer as defined in Rule 144A.

                                    Signature

                                       EX. C-1
<PAGE>

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

         The undersigned represents and warrants that it is purchasing this
Series A Note for its own account or an account with respect to which it
exercises sole investment discretion and that it and any such account is a
"qualified institutional buyer" within the meaning of Rule 144A under the
Securities Act of 1933, and is aware that the sale to it is being made in
reliance on Rule 144A and acknowledges that it has received such information
regarding the Company as the undersigned has requested pursuant to Rule 144A or
has determined not to request such information and that it is aware that the
transferor is relying upon the undersigned's foregoing representations in order
to claim the exemption from registration provided by Rule 144A.

Date:
      ------------------------------

                 NOTICE: To be executed by an executive officer.

                                       EX. C-2
<PAGE>

                                    EXHIBIT D

                        FORM OF LETTER TO BE DELIVERED BY
                       INSTITUTIONAL ACCREDITED INVESTORS

Southern Power Company
270 Peachtree Street, N.W.
Atlanta, Georgia  30303

Ladies and Gentlemen:

         We are delivering this letter in connection with an offering of 6.25%
Senior Notes, Series A due July 15, 2012 (the "Notes") issued by Southern Power
Company (the "Company"). We confirm that we understand that the Notes have not
been and will not be registered under the Securities Act of 1933, as amended
(the "Securities Act"), or any other applicable securities law and may not be
offered, sold or otherwise transferred unless registered pursuant to, or exempt
from registration under, the Securities Act or any other applicable securities
law. We also represent and agree as follows:

         (i)   We are an "institutional accredited investor" within the meaning
              of Rule 501(a)(1), (2) or (3) under the Securities Act or an
              entity in which all of the equity owners are accredited investors
              within the meaning of Rule 501(a)(1), (2) or (3) under the
              Securities Act (an "Institutional Accredited Investor");

        (ii)  (A) any purchase of the Notes by us will be for our own account or
              for the account of one or more other Institutional Accredited
              Investors or as fiduciary for the account of one or more trusts,
              each which is an "accredited investor" within the meaning of Rule
              501(a)(7) under the Securities Act and for each of which we
              exercise sole investment discretion or (B) we are a "bank", within
              the meaning of Section 3(a)(2) of the Securities Act, or a
              "savings and loan association" or other institution described in
              Section 3(a)(5)(A) of the Securities Act that is acquiring the
              Notes as fiduciary for the account of one or more institutions for
              which we exercise sole investment discretion;

       (iii)  in the event that we purchase any of the Notes, we will acquire
              Notes having a minimum purchase price of not less than $100,000
              for our own account or for any separate account for which we are
              acting;

        (iv)  we have such knowledge and experience in financial and business
              matters that we are capable of evaluating the merits and risks of
              purchasing the Notes, and we and any accounts for which we are
              acting are each able to bear the economic risk of our or its
              investment in the Notes;

                                       EX. D1
<PAGE>

         (v)  we are not acquiring the Notes with a view to distribution thereof
              or with any present intention of offering or selling any of the
              Notes, except inside the United States in accordance with Rule
              144A under the Securities Act or outside the United States in
              accordance with Regulation S under the Securities Act, as provided
              below; provided that the disposition of our property and the
              property of any accounts for which we are acting as fiduciary
              shall remain at all times within our control; and

         (vi) we acknowledge that (A) we have beenafforded an opportunity  to
              request form the Company and to review, and we have received, all
              additional information considered by us to be necessary to verify
              the accuracy of the information contained in the offering
              memorandum relating to the Notes dated June 13, 2002
              (the  "Offering  Memorandum");  (B) we  have  not  relied  on any
              Initial  Purchaser  or any  person  affiliated  with any  Initial
              Purchaser in connection with our investigation of the accuracy of
              the  information  contained  in the Offering  Memorandum  or our
              investment  decision;  and (C) no person has been  authorized  to
              give any information or to make any representation concerning the
              Notes other than those contained in the Offering  Memorandum and,
              if given or made, such other information or representation should
              not be  relied  upon as having  been  authorized  by any  Initial
              Purchaser.

         We understand that the Notes are being offered in a transaction not
involving any public offering within the United States within the meaning of the
Securities Act and that the Notes have not been and will not be registered under
the Securities Act, and we agree, on our own behalf and on behalf of each
account for which we acquire any Notes, that if in the future we decide to
resell, pledge or otherwise transfer such Notes, such Notes may be offered,
resold, pledged or otherwise transferred only (i) in the United States to a
person who we reasonably believe is a "qualified institutional buyer" (as
defined in Rule 144A under the Securities Act) in a transaction meeting the
requirements of Rule 144A, (ii) outside the United States in a transaction in
accordance with Rule 904 under the Securities Act, (iii) pursuant to an
exemption from registration under the Securities Act provided by Rule 144
thereunder (if available), (iv) to an Institutional Accredited Investor that,
prior to such transfer, furnishes to you and the Company, a signed letter
substantially in the form of this letter or (v) pursuant to an effective
registration statement under the Securities Act, in each of cases described in
(i) through (v), in accordance with any applicable securities laws of any State
of the United States or any other applicable jurisdiction. We understand that
the registrar and transfer agent for the Notes will not be required to accept
for registration of transfer any Notes acquired by us, except upon presentation
of evidence satisfactory to the Company and the transfer agent that the
foregoing restrictions on transfer have been complied with. We further
understand that any Notes acquired by us will be in definitive, certificated
form and that such certificated Notes will bear a legend reflecting the
substance of this paragraph.

         We acknowledge that you, the Company and others will rely upon our
confirmations, acknowledgements and agreements set forth herein, and we agree to
notify you promptly in writing if any of our representations or warranties
herein ceases to be accurate and complete.

                                       Ex. D-2
<PAGE>

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

        THIS LETTER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
LAWS.

Date:____________________________   __________________________________
                                                     (Name of Purchaser)

                                           By:________________________________
                                                              Name:
                                                              Title:
                                    Address:

                                    EX. D-3Exhibit 4.3

                             SOUTHERN POWER COMPANY

                 6.250% Senior Notes, Series A due July 15, 2012

                          REGISTRATION RIGHTS AGREEMENT

                                                        New York, New York
                                                             June 18, 2002

Lehman Brothers Inc.
745 Seventh Avenue
New York, New York  10019

Salomon Smith Barney Inc.
388 Greenwich Street
New York, New York  10013

    As Representatives of the Initial Purchasers

Ladies and Gentlemen:

                  Southern Power Company, a corporation organized under the laws
of the State of Delaware (the "Company"), proposes to issue and sell, severally
and not jointly, to Lehman Brothers Inc., Salomon Smith Barney Inc., Barclays
Capital Inc., Commerzbank Capital Markets Corp., Mizuho International plc,
Morgan Stanley & Co. Incorporated, Scotia Capital (USA) Inc. and
Tokyo-Mitsubishi International plc (the "Initial Purchasers"), upon the terms
set forth in a purchase agreement, dated June 13, 2002 (the "Purchase
Agreement"), $575,000,000 aggregate principal amount of its 6.250% Senior Notes,
Series A due July 15, 2012 (the "Securities"), relating to the initial placement
of the Securities (the "Initial Placement"). To induce the Initial Purchasers to
enter into the Purchase Agreement and to satisfy a condition of your obligations
thereunder, the Company agrees with you for your benefit and the benefit of the
holders from time to time of the Securities (including the Initial Purchasers)
(each a "Holder" and, together, the "Holders"), as follows:

                  1.  Definitions.  Each of the  capitalized  terms used herein
without definition  shall have the meaning set forth in the Purchase  Agreement.
As used in this Agreement,  the following  capitalized defined terms shall have
the following meanings:

                  "Act" shall mean the Securities Act of 1933, as amended, and
the rules and regulations of the Commission promulgated thereunder.

                  "Affiliate" of any specified Person shall mean any other
Person that, directly or indirectly, is in control of, is controlled by, or is
under common control with, such specified Person. For purposes of this

<PAGE>

definition, control of a Person shall mean the power, direct or indirect, to
direct or cause the direction of the management and policies of such Person
whether by contract or otherwise; and the terms "controlling" and "controlled"
shall have meanings correlative to the foregoing.

                  "Broker-Dealer" shall mean any broker or dealer registered as
such under the Exchange Act.

                  "Business Day" shall mean any day other than a Saturday, a
Sunday or a legal holiday or a day on which banking institutions or trust
companies are authorized or obligated by law to close in New York City.

                  "Commission" shall mean the Securities and Exchange
Commission.

                  "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended, and the rules and regulations of the Commission promulgated
thereunder.

                  "Exchange Offer Registration Period" shall mean the 270-day
period following the consummation of the Registered Exchange Offer, exclusive of
any period during which any stop order shall be in effect suspending the
effectiveness of the Exchange Offer Registration Statement.

                  "Exchange Offer Registration Statement" shall mean a
registration statement of the Company on an appropriate form under the Act with
respect to the Registered Exchange Offer, all amendments and supplements to such
registration statement, including post-effective amendments thereto, in each
case including the Prospectus contained therein, all exhibits thereto and any
material incorporated by reference therein.

                  "Exchanging Dealer" shall mean any Holder (which may include
any Initial Purchaser) that is a Broker-Dealer and elects to exchange for New
Securities any Securities that it acquired for its own account as a result of
market-making activities or other trading activities (but not directly from the
Company or any Affiliate of the Company) for New Securities.

                   "Holder" shall have the meaning set forth in the preamble
hereto.

                  "Indenture" shall mean the Indenture dated as of June 1, 2002,
between the Company and The Bank of New York, as trustee, as the same may be
amended or supplemented from time to time in accordance with the terms thereof.

                  "Initial Placement" shall have the meaning set forth in the
preamble hereto.

                  "Initial Purchaser" shall have the meaning set forth in the
preamble hereto.

                  "Majority Holders" shall mean the Holders of a majority of the
aggregate principal amount of Securities registered under a Registration
Statement.

                  "Managing Underwriters" shall mean the investment banker or
investment bankers and manager or managers that shall administer an underwritten
offering of the Securities offered pursuant to a Shelf Registration Statement.

                                       2
<PAGE>

                  "New Securities" shall mean debt securities of the Company
issued under the Indenture that are registered under the Act and are identical
in all material respects to the Securities (except that the interest rate
step-up provisions and the transfer restrictions shall be modified or
eliminated, as appropriate).

                  "Offering Memorandum" shall have the meaning set forth in the
Purchase Agreement.

                  "Prospectus" shall mean the prospectus included in any
Registration Statement (including, without limitation, a prospectus that
discloses information previously omitted from a prospectus filed as part of an
effective registration statement in reliance upon Rule 430A under the Act), as
amended or supplemented by any prospectus supplement, with respect to the terms
of the offering of any portion of the Securities or the New Securities covered
by such Registration Statement, and all amendments and supplements thereto and
any material incorporated by reference therein.

                  "Purchase Agreement" shall have the meaning set forth in the
preamble hereto.

                  "Registered Exchange Offer" shall mean the proposed offer of
the Company to issue and deliver to the Holders of the Securities that are not
prohibited by any law or policy of the Commission from participating in such
offer, in exchange for the Securities, a like aggregate principal amount of the
New Securities.

                  "Registration Statement" shall mean any Exchange Offer
Registration Statement or Shelf Registration Statement that covers any of the
Securities or the New Securities pursuant to the provisions of this Agreement,
any amendments and supplements to such registration statement, including
post-effective amendments (in each case including the Prospectus contained
therein), all exhibits thereto and any material incorporated by reference
therein.

                  "Securities" shall have the meaning set forth in the preamble
hereto.

                  "Shelf Registration" shall mean a registration effected
pursuant to Section 3 hereof.

                  "Shelf Registration Period" has the meaning set forth in
Section 3(b) hereof.

                  "Shelf Registration Statement" shall mean a "shelf"
registration statement of the Company pursuant to the provisions of Section 3
hereof which covers some or all of the Securities or New Securities, as
applicable, on an appropriate form under Rule 415 under the Act, or any similar
rule that may be adopted by the Commission, amendments and supplements to such
registration statement, including post-effective amendments, in each case
including the Prospectus contained therein, all exhibits thereto and any
material incorporated by reference therein.

                  "Transfer Restricted Security" means each Security until: (i)
the date on which that Security has been exchanged by a person other than a
broker-dealer for a freely transferable New Security in the Registered Exchange
Offer; (ii) following the exchange by a Broker-Dealer in the Registered Exchange
Offer of a Security for a New Security, the date on which that New Security is

                                       3
<PAGE>

sold to a purchaser who receives from that Broker-Dealer on or prior to the date
of that sale a copy of the Prospectus constituting part of the Exchange Offer
Registration Statement; (iii) the date on which that Security has been
effectively registered under the Act and disposed of in accordance with the
Shelf Registration Statement; or (iv) the date on which that Security is
distributed to the public pursuant to Rule 144 under the Act or becomes freely
tradeable pursuant to Rule 144(k) under the Act.

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

                  2.  Registered Exchange Offer.
                      -------------------------

                  (a) To the extent not prohibited by any applicable law or
         applicable interpretation of the Commission, the Company shall use its
         best efforts to consummate the Registered Exchange Offer within 270
         days of the date of the original issuance of the Securities (or if such
         270th day is not a Business Day, the next succeeding Business Day).

               (b) Upon the  effectiveness  of the Exchange  Offer  Registration
          Statement, the Company shall promptly commence the Registered Exchange
          Offer,  it being the objective of such  Registered  Exchange  Offer to
          enable  each  Holder of  Transfer  Restricted  Securities  electing to
          exchange  those  Transfer  Restricted  Securities  for New  Securities
          (assuming  that  such  Holder  is not  an  Affiliate  of the  Company,
          acquires the New  Securities  in the ordinary  course of such Holder's
          business,  has no  arrangements  with any Person to participate in the
          distribution of the New Securities and is not prohibited by any law or
          policy of the Commission from participating in the Registered Exchange
          Offer ) to trade  such New  Securities  from and after  their  receipt
          without  any  limitations  or  restrictions  under the Act and without
          material  restrictions  under  the  securities  laws of a  substantial
          proportion of the several states of the United States.

               (c) In connection with the Registered Exchange Offer, the Company
          shall:

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

                           (ii) keep the Registered Exchange Offer open for not
                  less than 20 Business Days and not more than 30 Business Days
                  after the date notice thereof is mailed to the Holders (or, in
                  each case, longer if required by applicable law);

                           (iii) use its best efforts to keep the Exchange Offer
                  Registration Statement continuously effective under the Act,
                  supplemented and amended as required, under the Act to ensure
                  that it is available for sales of New Securities by Exchanging
                  Dealers during the Exchange Offer Registration Period;

                           (iv) utilize the services of a depositary for the
                  Registered Exchange Offer with an address in the Borough of
                  Manhattan in New York City, which may be the Trustee or an
                  Affiliate of the Trustee;

                                       4
<PAGE>

                           (v) permit Holders to withdraw tendered Securities at
                  any time prior to the close of business, New York time, on the
                  last Business Day on which the Registered Exchange Offer is
                  open;

                           (vi) prior to effectiveness of the Exchange Offer
                  Registration Statement, provide a supplemental letter to the
                  Commission (A) stating that the Company is conducting the
                  Registered Exchange Offer in reliance on the position of the
                  Commission in Exxon Capital Holdings Corporation (pub. avail.
                  May 13, 1988) and Morgan Stanley and Co., Inc. (pub. avail.
                  June 5, 1991); and (B) including a representation that the
                  Company has not entered into any arrangement or understanding
                  with any Person to distribute the New Securities to be
                  received in the Registered Exchange Offer and that, to the
                  best of the Company's information and belief, each Holder
                  participating in the Registered Exchange Offer is acquiring
                  the New Securities in the ordinary course of business and has
                  no arrangement or understanding with any Person to participate
                  in the distribution of the New Securities; and

                           (vii) comply in all material respects with all
                  applicable laws.

               (d) As soon as  practicable  after  the  close of the  Registered
          Exchange Offer, the Company shall:

                         (i) accept for exchange all Securities tendered and not
               validly withdrawn pursuant to the Registered Exchange Offer;

                         (ii)  deliver to the Trustee for cancellation in
               accordance  with  Section 4(q)  herein all Securities so
               accepted for exchange; and

                         (iii) cause the Trustee promptly to authenticate and
                  deliver to each Holder of Securities a principal amount of New
                  Securities equal to the principal amount of the Securities of
                  such Holder so accepted for exchange.

          (e) Each Holder hereby acknowledges and agrees that any Broker-Dealer
     and any such Holder using the Registered Exchange Offer to participate in a
     distribution of the New Securities (x) could not under Commission policy as
     in  effect  on the  date of this Agreement rely on the position of the
     Commission in Morgan Stanley and Co., Inc. (pub. avail. June 5, 1991) and
     Exxon  Capital Holdings Corporation  (pub. avail.  May 13, 1988),  as
     interpreted in the Commission's letter to Shearman & Sterling dated July 2,
     1993  and  similar  no-action  letters;  and (y)  must comply with the
     registration and prospectus delivery requirements of the Act in connection
     with any secondary resale transaction and must be covered by an effective
     registration statement containing the selling security holder information
     required by Item 507 or 508, as applicable, of Regulation S-K under the Act
     if the  resales are of New Securities obtained by such Holder in exchange
     for Securities acquired by such Holder directly from the Company or one of
     its Affiliates.  Accordingly,  each Holder participating in the Registered
     Exchange Offer shall be required to represent to the Company that, at the
     time of the consummation of the Registered Exchange Offer:

                                       5
<PAGE>

                           (i) any New Securities received  by such  Holder
     will  be  acquired  in the  ordinary course of business;

                           (ii) such Holder will have no arrangement or
                  understanding with any Person to participate in the
                  distribution of the Securities or the New Securities within
                  the meaning of the Act;

                           (iii)  such Holder is not an Affiliate of the
                  Company;

                           (iv) if that  Holder is not a Broker-Dealer, that it
    is not  engaged  in, and does not intend to engage in, any distribution of
    the New Securities; and

                           (v) if that Holder is a Broker-Dealer, that it will
                  receive New Securities for its own account in exchange for
                  Securities that were acquired as a result of market-making
                  activities or other trading activities and that it will
                  deliver a Prospectus in connection with any resale of those
                  New Securities.

          (f)  Notwithstanding  any other provisions  hereof,  the Company will
     ensure that (i) any Exchange Offer Registration Statement and any amendment
     thereto  and any  Prospectus  forming  a part thereof and any  supplement
     thereto  complies in all material  respects  with the Act and the rules and
     regulations thereunder,  (ii) any Exchange Offer Registration Statement and
     any  amendment  thereto  does not,  when it becomes  effective, contain an
     untrue  statement  of a  material fact or omit to state a material fact
     required to be stated therein or necessary to make the  statements therein
     not misleading and (iii) any Prospectus  forming part of any Exchange Offer
     Registration  Statement,  and any supplement to such  Prospectus, does not
     include an untrue  statement of a material fact or omit to state a material
     fact  required  to be  stated  therein or necessary in order to make the
     statements therein, in the light of the circumstances under which they were
     made, not misleading.

          (g) If following the date hereof there has been announced a change in
     Commission  policy with respect to exchange  offers that in the  reasonable
     opinion of counsel  to the  Company  raises a  substantial  question as to
     whether the Registered  Exchange  Offer is permitted by applicable federal
     law, the Company will seek a no-action  letter or other favorable decision
     from the  Commission  allowing  the Company to  consummate  the Registered
     Exchange Offer.  The Company will pursue the issuance of such a decision to
     the Commission  staff level. In connection with the foregoing,  the Company
     will take all such other  actions as may be requested by the  Commission or
     otherwise  required  in  connection  with the  issuance  of such  decision,
     including without  limitation (i)  participating in telephonic  conferences
     with the Commission,  (ii)  delivering to the Commission  staff an analysis
     prepared by counsel to the Company  setting forth the legal bases,  if any,
     upon which such counsel has concluded  that the  Registered  Exchange Offer
     should be permitted and (iii) diligently  pursuing a resolution (which need
     not be favorable) by the Commission staff.

                                       6
<PAGE>

                  3.  Shelf Registration.
                      ------------------

                  (a) If (i) due to any change in law or applicable
                  interpretations thereof by the Commission's staff, the Company
                  determines upon the advice of its outside counsel that it is
                  not permitted to effect the Registered Exchange Offer as
                  contemplated by Section 2 hereof;

                           (ii)  for any other reason the Registered  Exchange
                  Offer is not consummated  within 270 days of the date hereof;

                           (iii) any Initial Purchaser so requests with respect
                  to Securities that are not eligible to be exchanged for New
                  Securities in the Registered Exchange Offer and that are held
                  by it following consummation of the Registered Exchange Offer;

                           (iv) any Holder (other than an Exchanging Dealer) is
                  not eligible to participate in the Registered Exchange Offer
                  under applicable law or applicable policies of the Commission;
                  or

                           (v) any Holder (other than an Exchanging Dealer) that
                  participates in the Registered Exchange Offer does not receive
                  freely tradeable New Securities on the date of the exchange
                  for validly tendered (and not withdrawn) Transfer Restricted
                  Securities,

                  the Company shall effect a Shelf Registration Statement in
                  accordance with subsection (b) below (the date on which any of
                  the conditions described in the foregoing clauses (i) through
                  (v) occur, including in the case of clauses (iii), (iv) and
                  (v) the receipt of the required notice, being a "Trigger
                  Date"):

                    (b) (i) To the extent not prohibited by any  applicable law
               or applicable interpretation of the staff of the Commission, the
               Company  shall as promptly as  practicable  (but in no event more
               than 50 days after the Trigger  Date),  prepare and file with the
               Commission and thereafter  shall use its best efforts to cause to
               be  declared   effective  under  the  Act  a  Shelf  Registration
               Statement  relating  to  the  offer  and  sale  of  the  Transfer
               Restricted  Securities or the New Securities,  as applicable,  by
               the  Holders  thereof  from time to time in  accordance  with the
               methods of distribution  elected by such Holders and set forth in
               such Shelf Registration  Statement;  provided,  however,  that no
               Holder  (other  than an Initial  Purchaser)  shall be entitled to
               have the  Transfer  Restricted  Securities  held by it covered by
               such Shelf  Registration  Statement  unless such Holder agrees in
               writing to be bound by all of the  provisions  of this  Agreement
               applicable  to such  Holder;  and  provided  further,  that  with
               respect to New  Securities  received by an Initial  Purchaser  in
               exchange  for  Securities  constituting  any portion of an unsold
               allotment,   the   Company   may,   if   permitted   by   current
               interpretations by the Commission's  staff, file a post-effective
               amendment to the Exchange Offer Registration Statement containing
               the information required by Item 507 or 508 of Regulation S-K, as
               applicable,   in  satisfaction  of  its  obligations  under  this
               subsection  with respect  thereto,  and any such  Exchange  Offer
               Registration  Statement,  as so  amended,  shall be  referred  to
               herein as, and governed by the provisions herein applicable to, a
               Shelf Registration Statement.

                                       7
<PAGE>

                           (ii) The Company shall use its best efforts to keep
                  the Shelf Registration Statement continuously effective,
                  supplemented and amended as required by the Act, in order to
                  permit the Prospectus forming a part thereof to be usable by
                  Holders for a period of two years from the date the Shelf
                  Registration Statement is declared effective by the Commission
                  (or for such longer period if extended pursuant to Section
                  4(j)) or such shorter period that will terminate when all the
                  Securities or New Securities, as applicable, covered by the
                  Shelf Registration Statement have been sold pursuant to the
                  Shelf Registration Statement (in any such case, such period
                  being called the "Shelf Registration Period"). The Company
                  shall be deemed not to have used its best efforts to keep the
                  Shelf Registration Statement effective during the requisite
                  period if it voluntarily takes any action that would result in
                  Holders of Securities covered thereby not being able to offer
                  and sell such Securities during that period, unless such
                  action is required by applicable law.

                           (iii) Notwithstanding any other provisions of this
                  Agreement to the contrary, the Company shall cause the Shelf
                  Registration Statement and the related Prospectus and any
                  amendment or supplement thereto, as of the effective date of
                  the Shelf Registration Statement, amendment or supplement, (i)
                  to comply in all material respects with the applicable
                  requirements of the Act and the rules and regulations of the
                  Commission and (ii) not to contain any untrue statement of a
                  material fact or omit to state a material fact required to be
                  stated therein or necessary in order to make the statements
                  therein, in light of the circumstances under which they were
                  made, not misleading.

                  4.  Additional Registration Procedures.  In connection
with any Shelf  Registration Statement  and, to the extent applicable, any
Exchange Offer Registration Statement, the following provisions shall apply.

(a)      The Company shall:

                           (i) furnish to you, not less than five Business Days
                  prior to the filing thereof with the Commission, a copy of any

                                       8
<PAGE>

                  Exchange Offer Registration Statement and any Shelf
                  Registration Statement, and each amendment thereof and each
                  amendment or supplement, if any, to the Prospectus included
                  therein and shall not file any such Registration Statement or
                  amendment thereto or any Prospectus or any supplement thereto
                  (including any documents incorporated by reference therein
                  after the initial filing) to which the Initial Purchasers
                  shall reasonably object in writing, except for any
                  Registration Statement or amendment thereto or Prospectus or
                  supplement thereto (a copy of which has been previously
                  furnished to the Initial Purchasers and their counsel (and, in
                  the case of a Shelf Registration Statement, the Holders and
                  their counsel)) which counsel to the Company has advised the
                  Company in writing is required to be filed, notwithstanding
                  any such objection, in order to comply with applicable law;

                           (ii) include the information set forth in Annex A
                  hereto on the facing page of the Exchange Offer Registration
                  Statement, in Annex B hereto in the forepart of the Exchange
                  Offer Registration Statement in a section setting forth
                  details of the Exchange Offer, in Annex C hereto in the
                  underwriting or plan of distribution section of the Prospectus
                  contained in the Exchange Offer Registration Statement, and in
                  Annex D hereto in the letter of transmittal delivered pursuant
                  to the Registered Exchange Offer;

                           (iii) if requested by an Initial Purchaser, include
                  the information required by Item 507 or 508 of Regulation S-K,
                  as applicable, in the Prospectus contained in the Exchange
                  Offer Registration Statement; and

                           (iv) in the case of a Shelf Registration Statement,
                  include the names of the Holders that propose to sell
                  Securities pursuant to the Shelf Registration Statement as
                  selling security holders.

                    (b) The Company  shall advise you, the Holders of Securities
               covered by any Shelf  Registration  Statement and any  Exchanging
               Dealer under any Exchange Offer  Registration  Statement that has
               provided  in  writing to the  Company a  telephone  or  facsimile
               number and address for  notices,  and, if requested by you or any
               such Holder or  Exchanging  Dealer,  shall confirm such advice in
               writing (which notice  pursuant to clauses  (ii)-(v) hereof shall
               be  accompanied  by an  instruction  to  suspend  the  use of the
               Prospectus  until the Company  shall have  remedied the basis for
               such suspension):

                           (i) when a Registration Statement and any amendment
                  thereto has been filed with the Commission and when the
                  Registration Statement or any post-effective amendment thereto
                  has become effective;

                         (ii) of any request by the Commission for any amendment
                  or supplement to the Registration Statement or the
                  Prospectus or for additional information;

                         (iii) of the  issuance by the Commission  of any stop
                  order  suspending the effectiveness of the Registration
                  Statement or the initiation  of any proceedings  for that
                  purpose;

                           (iv) of the receipt by the Company of any
                  notification with respect to the suspension of the
                  qualification of the securities included therein for sale in
                  any jurisdiction or the initiation of any proceeding for such
                  purpose; and

                           (v) of the happening of any event that requires any
                  change in the Registration Statement or the Prospectus so
                  that, as of such date, the statements therein are not
                  misleading and do not omit to state a material fact required
                  to be stated therein or necessary to make the statements
                  therein (in the case of the Prospectus, in the light of the
                  circumstances under which they were made) not misleading.

                 (c) The Company shall use its best efforts to obtain the
          withdrawal of any order suspending the effectiveness of  any
          Registration Statement or the qualification of the securities therein
          for sale in any jurisdiction at the earliest possible time.

                                       9
<PAGE>

               (d) The  Company  shall  furnish to each Holder of Securities
          covered by any Shelf Registration Statement,  without charge, at least
          one copy of such Shelf  Registration  Statement and any post-effective
          amendment thereto,  including any material incorporated therein by
          reference,  and, if the Holder so requests in writing, all exhibits
          thereto (including exhibits incorporated by reference therein).

               (e) The  Company  shall, during the Shelf Registration Period,
          deliver to each Holder of Securities covered by any Shelf Registration
          Statement, without charge, as many copies of the Prospectus (including
          each  preliminary Prospectus)  included  in such  Shelf  Registration
          Statement and any amendment or supplement  thereto as such Holder may
          reasonably request.  The Company consents to the use of the Prospectus
          or any amendment or supplement  thereto by each of the selling Holders
          of  securities  in  connection  with  the  offering  and  sale  of the
          securities  covered by the Prospectus,  or any amendment or supplement
          thereto, included in the Shelf Registration Statement.

               (f) The Company shall furnish to each Exchanging Dealer which so
          requests,  without  charge,  at least one copy of the  Exchange  Offer
          Registration  Statement  and  any  post-effective  amendment  thereto,
          including any material  incorporated by reference therein, and, if the
          Exchanging  Dealer  so  requests  in  writing,  all  exhibits  thereto
          (including exhibits incorporated by reference therein).

               (g) The Company shall promptly deliver to each Initial Purchaser,
          each  Exchanging  Dealer and each other Person  required to deliver a
          Prospectus  during the Exchange Offer Registration  Period,  without
          charge,  as many copies of the Prospectus included in such Exchange
          Offer  Registration  Statement and any amendment or supplement thereto
          as any such Person may reasonably request. The Company consents to the
          use of the  Prospectus or any amendment or supplement  thereto by any
          Initial  Purchaser,  any Exchanging Dealer and any such other Person
          that may be required to deliver a Prospectus following the Registered
          Exchange  Offer in  connection with the offering and sale of the New
          Securities  covered by the Prospectus,  or any amendment or supplement
          thereto, included in the Exchange Offer Registration Statement.

               (h) Prior to the Registered Exchange Offer or any other offering
          of  Securities  pursuant to any  Registration  Statement,  the Company
          shall arrange,  if necessary,  for the qualification of the Securities
          or the New Securities for sale under the laws of such jurisdictions as
          any  Holder  shall   reasonably   request  and  will   maintain   such
          qualification in effect so long as required; provided that in no event
          shall the  Company  be  obligated  to qualify  to do  business  in any
          jurisdiction  where it is not then so  qualified or to take any action
          that would subject it to service of process in suits, other than those
          arising out of the Initial Placement, the Registered Exchange Offer or
          any offering pursuant to a Shelf Registration  Statement,  in any such
          jurisdiction where it is not then so subject.

               (i) The Company shall cooperate with the Holders of Securities to
          facilitate  the timely preparation and delivery  of certificates
          representing  New Securities or Securities to be issued or sold
          pursuant to any Registration Statement free of any restrictive legends
          and in such  denominations and registered in such names as Holders may
          request.

                                       10
<PAGE>

               (j) Upon the occurrence of any event  contemplated  by paragraphs
          (ii)  through (v) of Section 4(b) above during the period in which the
          Company is required to maintain an effective Registration Statement,
          the Company shall promptly prepare and file a post-effective amendment
          to the applicable Registration Statement or an amendment or supplement
          to the related  Prospectus or any other required document so that, as
          thereafter delivered to the Holders or purchasers of the Securities,
          the Prospectus will not include an untrue statement of a material fact
          or omit to state any material fact necessary to make the  statements
          therein, in the light of the circumstances under which they were made,
          not misleading. In such circumstances, the period of effectiveness of
          the Exchange Offer Registration Statement provided for in Section 2
          and the Shelf  Registration Statement provided for in Section  3(b)
          shall each be extended by the number of days from and including  the
          date of the giving of a notice of suspension  pursuant to Section 4(b)
          to and including the date when the Initial Purchasers, the Holders of
          the  Securities and any known  Exchanging Dealer shall have received
          such amended or supplemented Prospectus pursuant to this Section.

               (k)  Not  later  than  the  effective  date  of any  Registration
          Statement, the Company shall provide a CUSIP number for the Securities
          or the New  Securities,  as the case  may be,  registered  under  such
          Registration   Statement   and  provide  the  Trustee   with   printed
          certificates for such Securities or New Securities, in a form eligible
          for deposit with The Depository Trust Company.

               (l) The Company will comply with all rules and regulations of the
          Commission  to the  extent and so long as they are  applicable  to the
          Registered  Exchange  Offer or the  Shelf  Registration  and will make
          generally  available to its security holders (or otherwise  provide in
          accordance  with  Section  11(a)  of the  Act) an  earnings  statement
          satisfying  the  provisions of Section 11(a) of the Act, no later than
          45 days after the end of a 12-month period (or 90 days, if such period
          is a fiscal  year)  beginning  with the first  month of the  Company's
          first  fiscal  quarter  commencing  after  the  effective  date of the
          Registration  Statement,  which  statement  shall cover such  12-month
          period.

               (m) The Company shall cause the  Indenture to be qualified  under
          the Trust Indenture Act of 1939, as amended, in a timely manner.

               (n) The Company may require each Holder of Securities to be sold
          pursuant to any Shelf Registration Statement to furnish to the Company
          such  information  regarding the Holder and the distribution  of such
          Securities as the Company may from time to time reasonably require for
          inclusion in such Registration Statement. The Company may exclude from
          such Shelf Registration Statement the Securities of any Holder that
          unreasonably  fails to furnish such information within a reasonable
          time after receiving such request and the Company shall be under no
          further  obligations to such Holder to include such Holder in a Shelf
          Registraion Statement.  A Holder will not be permitted to sell
          Securities  pursuant to the Shelf Registration  Statement unless the
          Holder has eturned  to the Company a  completed  and signed notice
          electing to be included and furnishing the  older's name and other
          information required to be included in the related Prospectus.  The
          Company will send the form of notice and questionnaire to Holders at
          least 30 calendar days before the effectiveness of the Shelf
          Registration  Statement and Holders will have 28  calendar  days to
          return it.

                                       11
<PAGE>

               (o) In the case of any Shelf Registration Statement,  the Company
          shall  enter  into  such  and  take all other appropriate actions
          (including if requested an  underwriting agreement in customary form)
          in order to expedite or facilitate the registration or the disposition
          of the  Securities,  and in connection therewith,  if an underwriting
          agreement is entered into,  cause the same to contain indemnification
          provisions  and  procedures no less favorable than those set forth in
          Section 6 (or such other  provisions and procedures acceptable to the
          Majority Holders and the Managing Underwriters,  if any, with respect
          to all parties to be indemnified pursuant to Section 6).

               (p) In the case of any Shelf Registration Statement, the Company
          shall:

                           (i) make reasonably available for inspection by the
                  Holders of Securities to be registered thereunder, any
                  underwriter participating in any disposition pursuant to such
                  Registration Statement, and any attorney, accountant or other
                  agent retained by the Holders or any such underwriter all
                  relevant financial and other records, pertinent corporate
                  documents and properties of the Company and its subsidiaries;
                  provided, however, that any information that is designated in
                  writing by the Company, in good faith, as confidential at the
                  time of delivery of such information shall be kept
                  confidential by the Holders or any such underwriter, attorney,
                  accountant or agent, unless such disclosure is made in
                  connection with a court proceeding or required by law
                  (including, without limitation, pursuant to the Act), or such
                  information becomes available to the public generally or
                  through a third party without an accompanying obligation of
                  confidentiality;

                           (ii) cause the Company's officers, directors and
                  employees to supply all relevant information reasonably
                  requested by the Holders or any such underwriter, attorney,
                  accountant or agent in connection with any such Registration
                  Statement as is customary for similar due diligence
                  examinations; provided, however, that any information that is
                  designated in writing by the Company, in good faith, as
                  confidential at the time of delivery of such information shall
                  be kept confidential by the Holders or any such underwriter,
                  attorney, accountant or agent, unless such disclosure is made
                  in connection with a court proceeding or required by law
                  (including, without limitation, pursuant to the Act), or such
                  information becomes available to the public generally or
                  through a third party without an accompanying obligation of
                  confidentiality;

                           (iii) make such representations and warranties to the
                  Holders of Securities registered thereunder and the
                  underwriters, if any, in form, substance and scope as are
                  customarily made by issuers to underwriters in underwritten
                  offerings and covering matters including, but not limited to,
                  those set forth in the Purchase Agreement;

                                       12
<PAGE>

                           (iv) obtain opinions of counsel to the Company and
                  updates thereof (which counsel and opinions (in form, scope
                  and substance) shall be reasonably satisfactory to the
                  Managing Underwriters, if any) addressed to each selling
                  Holder and the underwriters, if any, covering such matters as
                  are customarily covered in opinions requested in underwritten
                  offerings and such other matters as may be reasonably
                  requested by such Holders and underwriters;

                           (v) obtain "cold comfort" letters and updates thereof
                  from the independent certified public accountants of the
                  Company (and, if necessary, any other independent certified
                  public accountants of any subsidiary of the Company or of any
                  business acquired by the Company for which financial
                  statements and financial data are, or are required to be,
                  included in the Registration Statement), addressed to each
                  selling Holder of Securities registered thereunder and the
                  underwriters, if any, in customary form and covering matters
                  of the type customarily covered in "cold comfort" letters in
                  connection with primary underwritten offerings; and

                           (vi) deliver such documents and certificates as may
                  be reasonably requested by the Majority Holders and the
                  Managing Underwriters, if any, including those to evidence
                  compliance with Section 4(k) and with any customary conditions
                  contained in the underwriting agreement or other agreement
                  entered into by the Company.

                  The actions set forth in clauses (i) through (vi) of this
paragraph (p) shall be performed at each closing under any underwriting or
similar agreement as and to the extent required thereunder.

               (q) If a Registered Exchange Offer is to be consummated: (i) upon
          delivery of the Securities by Holders to the Company (or to such other
          Person as directed by the Company) in exchange for the New Securities,
          the Company shall mark, or caused to be marked, on the Securities so
          exchanged that such Securities are being canceled in exchange for the
          New  Securities (in no event shall the Securities be marked as paid or
          otherwise  satisfied);  and (ii) if requested by any Initial Purchaser
          or any  known  Exchanging  Dealer,  the Company shall cause (A) its
          counsel to deliver to such Initial Purchaser or such Exchanging Dealer
          a signed opinion in the form set forth in  Section 5 of the  Purchase
          Agreement with such changes as are customary in  connection  with the
          preparation  of a Registration  Statement  and (ii)  its  independent
          public  accountants  to  deliver to such  Initial Purchaser or such
          Exchanging  Dealer a comfort letter, in customary  form,  meeting the
          requirements as to the substance  thereof as set forth in Section 5 of
          the Purchase Agreement, with appropriate date changes.

               (r) The Company will use its best  efforts (i) if the  Securities
          have been rated prior to the initial sale of such Securities  pursuant
          to the Purchase  Agreement,  to confirm such ratings will apply to the
          Securities  or the New  Securities,  as the case may be,  covered by a
          Registration  Statement; or (ii) if the Securities were not previously
          rated, to cause the Securities covered by a Registration  Statement to
          be rated with at least one nationally  recognized  statistical  rating
          agency,  if so  requested  by  Majority  Holders  with  respect to the

                                       13
<PAGE>

          related Registration Statement or by any Managing Underwriters.

(s)      In the event that any Broker-Dealer shall underwrite any Securities or
         participate as a member of an underwriting syndicate or selling group
         or "assist in the distribution" (within the meaning of the Rules of
         Fair Practice and the By-Laws of the National Association of Securities
         Dealers, Inc.) thereof, whether as a Holder of such Securities or as an
         underwriter, a placement or sales agent or a broker or dealer in
         respect thereof, or otherwise, the Company will assist such
         Broker-Dealer in complying with the requirements of such Rules and
         By-Laws, including, without limitation, by:

                           (i) if such Rules or By-Laws shall so require,
                  engaging a "qualified independent underwriter" (as defined in
                  such Rules) to participate in the preparation of the
                  Registration Statement, to exercise usual standards of due
                  diligence with respect thereto and, if any portion of the
                  offering contemplated by such Registration Statement is an
                  underwritten offering or is made through a placement or sales
                  agent, to recommend the yield of such Securities;

                         (ii)   indemnifying any such qualified independent
                  underwriter to the extent of the indemnification of
                  underwriters provided in Section 6 hereof; and

                           (iii) providing such information to such
                  Broker-Dealer as may be required in order for such
                  Broker-Dealer to comply with the requirements of such Rules.

                 (t) The Company shall use its best efforts to take all other
          steps  necessary to effect the registration of the Securities or the
          New  Securities,  as  the  case  may  be, covered by a  Registration
          Statement.

                  5. Registration Expenses. The Company shall bear all expenses
incurred in connection with the performance of its obligations under Sections 2,
3 and 4 hereof and, in the event of any Shelf Registration Statement, will
reimburse the Holders for the reasonable fees and disbursements of one firm or
counsel designated by the Majority Holders to act as counsel for the Holders in
connection therewith, and, in the case of any Exchange Offer Registration
Statement, will reimburse the Initial Purchasers for the reasonable fees and
disbursements of their counsel incurred in connection with their review of the
Exchange Offer Registration Statement.

                  6. Indemnification.

                    (a) The Company agrees to indemnify and hold harmless each
               Holder,  any  Exchanging Dealer  and each person,  if any,  who
               controls any such Holder or Exchanging Dealer within the meaning
               of Section 15 of the Act or Section  20(a) of the Exchange Act,
               against any and all losses, claims, damages or liabilities, joint
               or several, to which they or any of them may become subject under
               the Act, Exchange Act or otherwise, and to reimburse such Holder,
               such Exchanging Dealer and such controlling person or persons, if
               any,  for any legal or other expenses incurred by them in
               connection with defending any actions,  insofar as such losses,
               claims, damages, liabilities or actions arise out of or are based
               upon any  untrue  statement or alleged untrue statement of a
               material  fact  contained in any Registration Statement or
               Prospectus (as amended or supplemented if the Company shall have

                                       14
<PAGE>

               furnished any amendment or supplement thereto),  or arise out of
               or are based upon any omission or alleged  omission  to state
               therein a material fact required to be stated therein or
               necessary to make the statements  therein not misleading, except
               insofar as such losses, claims, damages, liabilities or actions
               arise  out of or are  based  upon any such untrue statement  or
               alleged  untrue  statement or omission or alleged omission which
               was made in any Registration Statement or Prospectus in reliance
               upon and in conformity with information furnished in writing to
               the Company by the Holders or Exchanging Dealers for use therein
               and except that this  ndemnity with respect to any Prospectus,
               shall not inure to the benefit of any Holder or Exchanging Dealer
               (or of any person controlling such Holder or Exchanging  Dealer)
               on account of any losses, claims, damages, liabilities or actions
               arising from the sale of the Securities or the New Securities to
               any person if a copy of the Prospectus,  as the same may then be
               amended or supplemented, shall not have been sent or given by or
               on behalf of such Holder or Exchanging Dealer to such person with
               or prior to the written confirmation of the sale involved and the
               untrue  statement or alleged untrue statement or omission or
               alleged omission was corrected in the Prospectus as supplemented
               or  amended at the time of such confirmation.  Each Holder and
               Exchanging Dealer agrees, within ten days after the receipt by it
               of notice of the commencement of any action in respect of which
               indemnity may be sought by it, or by any person controlling  it,
               from the Company on account of its  agreement contained in this
               Section 6, to notify the Company in writing of the commencement
               thereof but the omission of such Holder or Exchanging Dealer so
               to notify the  Company of any such  action shall not release the
               Company  from any liability  which it may have to such Holder or
               Exchanging Dealer or to such controlling person otherwise than on
               account of the indemnity agreement contained in this Section 6.
               In case any such  action  shall be brought against a Holder or
               Exchanging  Dealer or any such person controlling such Holder or
               Exchanging  Dealer and such  Holder or Exchanging Dealer shall
               notify the Company of the commencement thereof as above provided,
               the  Company  shall be entitled to  participate  in (and,  to the
               extent that it shall wish, including the selection of counsel, to
               direct)  the defense  thereof,  at its own  expense.  In case the
               Company  elects to direct such  defense and select such  counsel,
               any Holder or Exchanging Dealer or controlling  person shall have
               the right to employ its own counsel,  but, in any such case,  the
               fees and expenses of such counsel shall be at the expense of such
               Holder or Exchanging Dealer or such controlling person unless the
               employment of such counsel has been  authorized in writing by the
               Company in connection with defending such action. No indemnifying
               party  shall,  without  the  written  consent of the  indemnified
               party,  effect the settlement or compromise of, or consent to the
               entry of any judgment  with respect to, any pending or threatened
               action or claim in respect of which indemnification may be sought
               hereunder  (whether or not the indemnified  party is an actual or
               potential party to such action or claim) unless such  settlement,
               compromise or judgment (i) includes an  unconditional  release of
               the  indemnified  party from all  liability  arising  out of such
               action or claim and (ii) does not include any statement as to, or
               an admission of, fault, culpability or a failure to act, by or on
               behalf  of  any   indemnified   party.  In  no  event  shall  any
               indemnifying  party  have  any  liability  or  responsibility  in
               respect of the  settlement  or  compromise  of, or consent to the
               entry of any judgment  with respect to, any pending or threatened
               action or claim effected without its prior written consent.

                                       15
<PAGE>

                    (b) Each Holder and Exchanging  Dealer agrees  severally and
               not jointly,  to indemnify and hold harmless the Company and each
               of the Company's  directors and officers and each person, if any,
               who controls the Company within the meaning of Section 15 of the
               Act or Section  20(a) of the  Exchange Act to the same extent and
               upon the same terms as the indemnity agreement of the Company set
               forth in Section  6(a)  hereof,  but only with respect to alleged
               untrue statements or omissions made in any Registration Statement
               or Prospectus in reliance upon and in conformity with information
               furnished in writing to the Company by such Holder or  Exchanging
               Dealer for use therein.

                    (c) The agreements contained in this Section 6 shall survive
               the  sale of the Securities or New Securities pursuant to a
               Registration Statement and shall remain in full force and effect,
               regardless of any termination or cancellation of this Agreement
               or any investigation made by or on behalf of any indemnified
               party.

                    7. Additional Interest Under Certain Circumstances.

                    (a) Additional  interest (the  "Additional  Interest") with
               respect to the  Securities will be assessed as follows if any of
               the following events occurs (each event identified in clauses (i)
               through (v) below, an "Additional Interest Event"):

                    (i) If all Transfer Restricted Securities properly tendered
               to the Company have not been  exchanged for New  Securities on or
               prior  to the  270th  day  following  the  date  of the  original
               issuance of the Securities; or

                    (ii)  If the  Shelf  Registration  Statement has not been
               declared  effective  on or prior to the 270th day  following  the
               date of the original issuance of the Securities; or

                    (iii) If, after the Exchange Offer Registration Statement is
               declared  effective,  such Exchange Offer Registration  Statement
               thereafter  ceases to be  effective  or usable at any time during
               the required period specified within this Agreement; or

                           (iv) Whether or not the Registered Exchange Offer is
         consummated, any required Shelf Registration Statement is not filed as
         promptly as practicable, and in any event within 50 days, following the
         Trigger Event giving rise to the requirement to file a Shelf
         Registration Statement in accordance with this Agreement; or

                           (v) If, after any Shelf Registration Statement is
         declared effective, (A) such Shelf Registration Statement thereafter
         ceases to be effective during the Shelf Registration Period; or (B)
         such Shelf Registration Statement or the related Prospectus ceases to
         be usable in connection with resales of Transfer Restricted Securities
         during the Shelf Registration Period (except as permitted in paragraph
         (b) of this Section 7) because either (1) any event occurs as a result
         of which the related Prospectus forming part of such Shelf Registration
         Statement would include any untrue statement of a material fact or omit
         to state any material fact necessary to make the statements therein, in
         the light of the circumstances under which they were made not
         misleading, or (2) it shall be necessary to amend such Shelf
         Registration Statement, or supplement the related Prospectus, to comply
         with the Act or the Exchange Act or the respective rules thereunder.

                                       16
<PAGE>

                           Additional Interest shall accrue on the Transfer
         Restricted Securities over and above the interest set forth in the
         title of the Securities at a rate of 0.50% per annum from and including
         the date on which any such Additional Interest Event shall occur to,
         but excluding, the date on which all such Additional Interest Events
         have been cured or, if earlier, the date on which the Securities may
         first be resold in reliance on Rule 144(k). Such Additional Interest
         shall be payable in accordance with Section 7(c). In the event that
         more than one of the aforementioned Additional Interest Event occurs at
         the same time, the maximum increase in the interest rate applicable to
         the Securities shall be 0.50% per annum.

               (b) An Additional  Interest Event referred to in Section  7(a)(v)
         is deemed not to be  continuing  in relation  to a Shelf Registration
         Statement or the related  Prospectus if (i) that  Additional  Interest
         Event  has  occurred  solely  as a  result of  (x)  the filing of a
         post-effective  amendment  to such  Shelf Registration Statement to
         incorporate  annual audited financial information with respect to the
         Company,  when such post-effective amendment is not yet effective and
         needs to be declared  effective  to permit Holders to use the related
         Prospectus  or  (y)  the  occurrence of other material events  or
         developments with respect to the Company or its Affiliates that would
         need to be  described  in such  Shelf Registration  Statement  or the
         related Prospectus, and (ii) in the case of clause (y), the Company is
         proceeding  promptly  and in good faith to amend or supplement such
         Shelf Registration  Statement and related Prospectus to describe those
         events  or,  in the case of material developments that the Company
         determines in  good faith must remain confidential for business
         reasons,  the Company is proceeding promptly and in good faith to take
         such steps as are necessary so that those developments need no longer
         remain confidential, but in any case, if any Additional Interest Event
         (including any referred to in clause (x) or (y), above) continues for
         a period in excess of 45 days,  Additional Interest will be payable in
         accordance  with the above  paragraph from the day following the last
         day of that  45-day  period until the date on which that Additional
         Interest Event is cured  or,  if earlier,  the  date on  which  the
         Securities may first be resold in reliance on Rule 144(k).

               (c)  Any  Additional  Interest  payable  will be  payable  on the
         regular interest payment dates with respect to the Securities,  in the
         same manner as the manner in which  regular  interest is payable.  The
         amount of  Additional  Interest for any period will be  determined  by
         multiplying the applicable  Additional  Interest rate by the principal
         amount of the Securities,  multiplied by a fraction,  the numerator of
         which  is the  number  of  days  that  Additional  Interest  rate  was
         applicable  during that period  (determined  on the basis of a 360-day
         year comprised of twelve 30-day months),  and the denominator of which
         is 360.

               8. Rules 144 and 144A.  The Company shall use its best efforts to
         file the  reports required to be filed by it under  the Act and the
         Exchange  Act in a timely  manner.  If at any time the  Company is not
         required  to file  those  reports,  it will,  upon the  request of any
         Holder of Transfer  Restricted  Securities,  make  publicly  available
         other  information  so  long  as  is  necessary  to  permit  sales  of
         Securities pursuant to Rules 144 and 144A and otherwise as required by

                                       17
<PAGE>

         the  Indenture.  The Company  covenants that it will take such further
         action as any Holder of Transfer Restricted  Securities may reasonably
         request,  all to the extent  required from time to time to enable that
         Holder to sell Transfer  Restricted  Securities  without  registration
         under the  Securities  Act within  the  limitation  of the  exemptions
         provided by Rules 144 and 144A  (including  the  requirements  of Rule
         144A(d)(4)).  Upon request by an Initial  Purchaser,  the Company will
         provide  a  copy of  this Agreement to prospective purchasers of
         Securities  identified in writing to the  Company  by that  Initial
         Purchaser.  Upon the  request  of any  Holder of Transfer Restricted
         Securities,  the  Company  shall deliver  to that  Holder  a  written
         statement  as to whether  it has complied with these requirements.
         Notwithstanding the foregoing,  nothing in this Section 8 requires the
         Company to register any of its securities under the Exchange Act.

               9. Underwritten Registrations.

               (a) If any of the Transfer Restricted Securities covered by any
          Shelf  Registration Statement are to be sold in an underwritten
          offering,  the Managing Underwriters shall be selected by the Majority
          Holders.

               (b)  No Person may participate in any underwritten offering
          pursuant to any Shelf Registration Statement,  unless such Person (i)
          agrees to sell such Person's Transfer Restricted Securities, as the
          case may be, on the basis reasonably provided in any underwriting
          arrangements approved by the Persons entitled hereunder to approve
          such arrangements; and (ii) completes and executes all questionnaires,
          powers of attorney,  indemnities,  underwriting agreements and other
          documents  reasonably required under the terms of such underwriting
          arrangements.

               10. No  Inconsistent  Agreements.  The Company has not, as of the
          date hereof,  entered into, nor shall it, on or after the date hereof,
          enter into,  any  agreement  with  respect to its  securities  that is
          inconsistent  with  the  rights  granted  to  the  Holders  herein  or
          otherwise conflicts with the provisions hereof.

               11.  Amendments and Waivers.  The  provisions of this Agreement,
          including the provisions of this Section 9,  may not be amended,
          qualified,  modified or supplemented,  and waivers or  consents to
          departures from the  provisions hereof may not be given,  unless the
          Company has obtained the written consent of the Majority Holders (or,
          after the consummation of any Registered  Exchange Offer in accordance
          with Section 2 hereof, of New Securities); provided that, with respect
          to any matter that  directly or  indirectly  affects the rights of any
          Initial  Purchaser  hereunder,  the Company shall obtain the written
          consent of each such Initial Purchaser against which such amendment,
          qualification,  supplement,  waiver or consent is to be effective.
          Notwithstanding the foregoing (except the foregoing proviso), a waiver
          or consent to departure from the  provisions  hereof with respect to a
          matter that relates exclusively  to the  rights of  Holders whose
          Securities or New  Securities,  as the case may be,  are being sold
          pursuant to a  Registration Statement and that does not directly or
          indirectly  affect the rights of other  Holders  may be given by the
          Majority  Holders,  determined on the basis of Securities or New
          Securities,  as the case may be,  being sold rather  than registered
          under such Registration Statement.

                                       18
<PAGE>

               12. Notices. All notices and other communications provided for or
          permitted  hereunder shall be made in writing by hand-delivery,
          first-class  mail,  telex,  telecopier or  air courier guaranteeing
          overnight delivery:

               (a) if to a Holder,  at the most current address  given by such
          holder  to the  Company  in accordance with the provisions  of this
          Section, which address initially is, with respect to each Holder, the
          address of such Holder maintained  by the Registrar under the
          Indenture,  with a copy in like manner to: (i) Lehman  Brothers Inc.,
          745 Seventh Avenue, New York, New York 10019,  Attention: John Veech;
          (ii) Salomon Smith Barney Inc., 388 Greenwich  Street, New York, New
          York 10013,  Attention:  Barry P. Gold and (iii) Dewey Ballantine LLP,
          1301 Avenue of the  Americas,  New York,  New York  10019, Attention:
          Peter K. O'Brien;

               (b) if to you, initially at the respective addresses set forth in
          the Purchase Agreement; and

               (c) if to the Company,  initially at its address set forth in the
          Purchase Agreement.

                  All such notices and communications shall be deemed to have
been duly given when received.

                  The Initial Purchasers or the Company by notice to the other
parties may designate additional or different addresses for subsequent notices
or communications.

                  13. Successors. This Agreement shall inure to the benefit of
and be binding upon the successors and assigns of each of the parties,
including, without the need for an express assignment or any consent by the
Company thereto, subsequent Holders of Securities and the New Securities. The
Company hereby agrees to extend the benefits of this Agreement to any Holder of
Securities and the New Securities, and any such Holder may specifically enforce
the provisions of this Agreement as if an original party hereto.

                  14. Counterparts. This agreement may be in signed
counterparts, each of which shall an original and all of which together shall
constitute one and the same agreement.

                  15.  Headings.  The  headings used herein are for
convenience  only and shall not affect the construction hereof.

                  16. Applicable Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York applicable to
contracts made and to be performed in the State of New York.

                  17. Severability. In the event that any one of more of the
provisions contained herein, or the application thereof in any circumstances, is
held invalid, illegal or unenforceable in any respect for any reason, the
validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions hereof shall not be in any way impaired
or affected thereby, it being intended that all of the rights and privileges of
the parties shall be enforceable to the fullest extent permitted by law.

                                       19
<PAGE>

                  18. Securities Held by the Company, etc. Whenever the consent
or approval of Holders of a specified percentage of principal amount of
Securities or New Securities is required hereunder, Securities or New
Securities, as applicable, held by the Company or its Affiliates (other than
subsequent Holders of Securities or New Securities if such subsequent Holders
are deemed to be Affiliates solely by reason of their holdings of such
Securities or New Securities) shall not be counted in determining whether such
consent or approval was given by the Holders of such required percentage.

                  19. Specific Performance. Without limiting the remedies
available to the Holders, the Company acknowledges that any failure by it to
comply with its obligations under Sections 2 or 3 hereof may result in material
irreparable injury to the Holders for which there is no adequate remedy at law,
that it would not be possible to measure damages for such failure precisely and
that, in the event of any such failure, any Holder may obtain such relief as is
necessary to enforce specifically the obligations of the Company.

                                             [signature page follows]

                                       20
<PAGE>

                  If the foregoing is in accordance with your understanding of
our agreement, please sign and return to us the enclosed duplicate hereof,
whereupon this letter and your acceptance shall represent a building agreement
among the Company and the several Initial Purchasers.

                                          Very truly yours,

                                          SOUTHERN POWER COMPANY

                                          By:   __________________________
                                                 Name:
                                                 Title:

The foregoing Agreement is hereby confirmed and accepted as of the date first
above written.

LEHMAN BROTHERS INC.

     By:   __________________________
           Name:
            Title:

SALOMON SMITH BARNEY INC.

     By:   __________________________
           Name:
            Title:

For themselves and the other several Initial Purchasers named in Schedule I to
the Purchase Agreement.

<PAGE>

                                                                    ANNEX A

                  Each Broker-Dealer that receives New Securities for its own
account pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such New Securities. The Letter of
Transmittal states that by so acknowledging and by delivering a prospectus, a
Broker-Dealer will not be deemed to admit that it is an "underwriter" within the
meaning of the Act. This Prospectus, as it may be amended or supplemented from
time to time, may be used by a Broker-Dealer in connection with resales of New
Securities received in exchange for Securities where such Securities were
acquired by such Broker-Dealer as a result of market-making activities or other
trading activities. The Company has agreed that, during the Exchange Offer
Registration Period, it will make this Prospectus available to any Broker-Dealer
for use in connection with any such resale. See "Plan of Distribution".

<PAGE>

                                                                    ANNEX B

                  Each Broker-Dealer that receives New Securities for its own
account in exchange for Securities, where such Securities were acquired by such
Broker-Dealer as a result of market-making activities or other trading
activities, must acknowledge that it will deliver a prospectus in connection
with any resale of such New Securities. See "Plan of Distribution".

<PAGE>

                                                                   ANNEX C

                              PLAN OF DISTRIBUTION

                  Each Broker-Dealer that receives New Securities for its own
account pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such New Securities. This
Prospectus, as it may be amended or supplemented from time to time, may be used
by a Broker-Dealer in connection with resales of New Securities received in
exchange for Securities where such Securities were acquired as a result of
market-making activities or other trading activities. The Company has agreed
that, during the Exchange Offer Registration Period, it will make this
Prospectus, as amended or supplemented, available to any Broker-Dealer for use
in connection with any such resale. In addition, until __________, 20___, all
dealers effecting transactions in the New Securities may be required to deliver
a prospectus.1

                  The Company will not receive any proceeds from any sale of New
Securities by Broker-Dealers. New Securities received by Broker-Dealers for
their own accounts pursuant to the Exchange Offer may be sold from time to time
in one or more transactions in the over-the-counter market, in negotiated
transactions, through the writing of options on the New Securities or a
combination of such methods of resale, at market prices prevailing at the time
of resale, at prices related to such prevailing market prices or negotiated
prices. Any such resale may be made directly to purchasers or to or through
brokers or dealers who may receive compensation in the form of commissions or
concessions from any such Broker-Dealer and/or the purchasers of any such New
Securities. Any Broker-Dealer that resells New Securities that were received by
it for its own account pursuant to the Exchange Offer and any broker or dealer
that participates in a distribution of such New Securities may be deemed to be
an "underwriter" within the meaning of the Act and any profit on any such resale
of New Securities and any commissions or concessions received by any such Person
may be deemed to be underwriting compensation under the Act. The Letter of
Transmittal states that by acknowledging that it will deliver and by delivering
a prospectus, a Broker-Dealer will not be deemed to admit that it is an
"underwriter" within the meaning of the Act.

                  During the Exchange Offer Registration Period, the Company
will promptly send additional copies of this Prospectus and any amendment or
supplement to this Prospectus to any Broker-Dealer that requests such documents
in the Letter of Transmittal. The Company has agreed to pay all expenses
incident to the Exchange Offer (including the expenses of one counsel for the
holder of the Securities) other than commissions or concessions of any broker or
dealer and will indemnify the holders of the Securities (including any
Broker-Dealers) against certain liabilities, including liabilities under the
Act.

_____________________
1 In addition, the legend required by Item 502(b) of Regulation S-K will appear
on the back cover page of the Exchange Offer Prospectus.

<PAGE>

                                                                     ANNEX D

Rider A

CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES
OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

Name:
         --------------------------------------------
Address:
         --------------------------------------------

Rider B

If the undersigned is not a Broker-Dealer, the undersigned represents that it
acquired the New Securities in the ordinary course of its business, it is not
engaged in, and does not intend to engage in, a distribution of New Securities
and it has no arrangements or understandings with any Person to participate in a
distribution of the New Securities. If the undersigned is a Broker-Dealer that
will receive New Securities for its own account in exchange for Securities, it
represents that the Securities to be exchange for New Securities were acquired
by it as a result of market-making activities or other trading activities and
acknowledges that it will deliver a Prospectus in connection with any resale of
such New Securities; however, by so acknowledging and by delivering a
Prospectus, the undersigned will not be deemed to admit that it is an
"underwriter" within the meaning of the Act.

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