Document:

Exhibit 10.3

VIRGIN
MEDIA INC.

RESTRICTED STOCK AGREEMENT

RESTRICTED STOCK AGREEMENT, dated as of April 11, 2007, between Virgin Media Inc., a Delaware
corporation (the “Company”), and Stephen A. Burch (the ”Executive”).

WHEREAS, the Executive and the Company are parties to an Employment
Agreement, dated as of December 15, 2005, which contemplates that the Executive
would be granted (among other grants) 125,000 shares of common stock, par value
$0.01 per share, of the Company (the “Common Stock”) in each of 2006, 2007 and
2008; and

WHEREAS, the Company and the Executive now wish to evidence a grant of
125,000 shares of Common Stock (the “Restricted Stock”) pursuant to the Virgin
Media Inc. 2006 Stock Incentive Plan (the “Plan”).

NOW, THEREFORE, the parties hereto agree as follows:

1.                                       Grant of Restricted Stock.

The Company hereby grants to
the Executive, and the Executive hereby accepts from the Company, 125,000
shares of Restricted Stock on the terms and conditions set forth in this
Agreement.  This Agreement is also
subject to the terms and conditions set forth in the Plan.  Capitalized terms used but not defined herein
shall have the meanings set forth in the Plan.

2.                                       Rights of Executive.

Except as otherwise provided
in this Agreement, the Executive shall be entitled, at all times on and after
the date that the shares of Restricted Stock are issued, to exercise all the
rights of a stockholder with respect to the shares of Restricted Stock (whether
or not the Transfer Restrictions thereon shall have lapsed), including the
right to vote the shares of Restricted Stock and the right, subject to Section
6 hereof, to receive dividends thereon. 
Notwithstanding the foregoing, prior to the Lapse Date (as defined
below), the Executive shall not be entitled to transfer, sell, pledge,
hypothecate, assign, or otherwise dispose of or encumber, the shares of
Restricted Stock (collectively, the “Transfer Restrictions”).  The Executive hereby acknowledges that the
Company may set policies from time to time on minimum stock holdings of its key
executives and such policies, as in effect from time to time, may restrict
transfers of vested shares by the Executive. 
The Executive agrees to comply with these policies and the Company’s
insider trading policy as in effect from time to time.

3.             Vesting and Lapse of Transfer Restrictions.

3.1                              The Transfer Restrictions on the shares of Restricted Stock shall lapse
and the Restricted Stock shall vest not later than April 30, 2010 subject to
achievement of the on-target performance goals under the Company’s Long Term
Incentive Plan for the period beginning on January 1, 2007 and ending on
December 31, 2009 (the “2007 LTIP”), and so long as the Executive has remained
continuously employed by the Company from the date of commencement of his employment
through December 31, 2009; provided, however, if less than 100% of the
on-target threshold is achieved under the Company’s 2007 LTIP, none of the
shares of Restricted Stock shall vest unless otherwise determined by the Compensation
Committee (the “Committee”).

 

	
  

  	
   

  	
  Such lapsing and vesting
  shall occur on the date in the 2010 fiscal year on which the Committee makes
  the determination as to whether such performance conditions have been met in
  respect of such performance period. 
  The Committee shall meet to make such determination promptly after the
  completion by the Company of the financial reports or other information
  necessary to make such determination but in no event later than April 30,
  2010.  If such performance goals are not
  met, the Executive shall forfeit the Restricted Stock, and such shares of
  Restricted Stock shall cease to be outstanding and the Executive shall have
  no rights with respect thereto.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The foregoing date on
  which restrictions on the shares of Restricted Stock are scheduled to lapse
  and such shares of Restricted Stock are scheduled to vest is referred to in
  this Agreement as the “Lapse Date.”

  
	
   

  	
   

  	
   

  
	
   

  	
  3.2

  	
  Upon the occurrence of an
  Acceleration Event, if the Restricted Stock is then outstanding, the restrictions
  on the shares of Restricted Stock will lapse and the Restricted Stock will
  automatically vest.

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Escrow and Delivery of
  Shares.

  
	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  Certificates representing the shares of Restricted
  Stock shall be issued and held by the Company in escrow and shall remain in
  the custody of the Company until their delivery to the Executive or the
  Executive’s estate as set forth in Section 4.2 hereof, subject to the
  Executive’s delivery of any documents which the Company in its discretion may
  require as a condition to the issuance of shares and the delivery of shares
  to the Executive or the Executive’s estate.

  
	
   

  	
   

  	
   

  
	
   

  	
  4.2

  	
  Certificates representing those shares of
  Restricted Stock in respect of which the Transfer Restrictions have lapsed
  pursuant to Section 3 hereof shall be delivered to the Executive as soon as
  practicable following the Lapse Date, provided that the Executive has
  satisfied all Withholding Tax requirements with respect to the Restricted
  Stock.

  
	
   

  	
   

  	
   

  
	
   

  	
  4.3

  	
  The Executive may receive, hold, sell, or otherwise
  dispose of those shares delivered to the Executive pursuant to Section 4.2
  free and clear of the Transfer Restrictions, but subject to compliance with
  all federal and state securities laws.

  
	
   

  	
   

  	
   

  
	
   

  	
  4.4

  	
  Prior to the Lapse Date, each stock certificate
  evidencing shares of Restricted Stock shall bear a legend in substantially
  the following form:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “This certificate and the shares of stock
  represented hereby are subject to the terms and conditions (including
  forfeiture, restrictions against transfer and rights of repurchase, if
  applicable) contained in the Restricted Stock Agreement (the “Agreement”)
  between the registered owner of the shares represented hereby and Virgin
  Media Inc Release from such terms and conditions shall be made only in accordance
  with the provisions of the Agreement, a copy of which is on file in the
  office of the Secretary of Virgin Media Inc.”.

  
	
   

  	
   

  	
   

  
	
   

  	
  4.5

  	
  As soon as practicable following the Lapse Date, the
  Company shall issue new certificates in respect of the shares that have
  vested as of the Lapse Date which shall not bear the legend set forth in
  Section 4.4, which certificates shall be delivered in accordance with Section
  4.2 hereof.

  
				

 

 2
 

5.                                       Effect of Termination of Employment for any
Reason.

Upon termination of the
Executive’s employment with the Company and its Affiliates, if applicable, for
any reason, the Executive shall forfeit the shares of Restricted Stock which
are then subject to the Transfer Restrictions, and, from and after such
forfeiture, such shares of Restricted Stock shall cease to be outstanding and
the Executive shall have no rights with respect thereto; provided, that, if the
Executive’s employment shall terminate after the end of the performance period
and prior to the date of the determination as to whether the performance
conditions applicable to such performance period have been met, the shares of
Restricted Stock subject to vesting in respect of such performance period shall
remain outstanding following the termination of the Executive’s employment and shall
vest or be forfeited when such determination is made, in either case based on
such determination.

6.                                       Voting and Dividend Rights.

All dividends declared and
paid by the Company on shares of Restricted Stock shall be deferred until the
lapsing of the Transfer Restrictions pursuant to Section 3 hereof (and shall be
subject to forfeiture upon forfeiture of the shares of Restricted Stock as to
which such deferred dividends relate). 
The deferred dividends shall be held by the Company for the account of
the Executive.  Upon the Lapse Date, the
dividends allocable to the shares of Restricted Stock as to which the Transfer
Restrictions have lapsed shall be paid to the Executive (without interest).  The Company may require that any cash
dividends received be invested in additional Restricted Stock which shall be
subject to the same conditions and restrictions as the Restricted Stock granted
under this Agreement.

7.                                       No Right to Continued Employment.

Nothing in this Agreement
shall be interpreted or construed to confer upon the Executive any right with
respect to continuance of employment by the Company or any of its Affiliates,
nor shall this Agreement interfere in any way with the right of the Company or
any such Affiliate to terminate the Executive’s employment at any time.

8.                                       Withholding of Taxes.

The Executive shall pay to
the Company, or the Company and the Executive shall agree on such other
arrangements necessary for the Executive to pay, the applicable federal, state
and local income taxes required by law to be withheld (the “Withholding Taxes”),
if any, upon the vesting and delivery of the shares.  The Company shall have the right to deduct
from any payment of cash to the Executive an amount equal to the Withholding
Taxes in satisfaction of the Executive’s obligation to pay Withholding Taxes.

9.                                       Modification of Agreement.

This Agreement may be
modified, amended, suspended or terminated, and any terms or conditions may be
waived, but only by a written instrument executed by the parties hereto.

 3
 

10.                                 Severability.

Should any provision of this
Agreement be held by a court of competent jurisdiction to be unenforceable or
invalid for any reason, the remaining provisions of this Agreement shall not be
affected by such holding and shall continue in full force and effect in
accordance with their terms.

11.                                 Governing Law.

The validity,
interpretation, construction and performance of this Agreement shall be
governed by the laws of the State of New York without giving effect to the
conflicts of laws principles thereof which might result in the application of
the laws of any other jurisdiction.

12.                                 Successors in Interest; Transfer.

This Agreement shall inure
to the benefit of and be binding upon any successor to the Company.  This Agreement shall inure to the benefit of
the Executive’s heirs, executors, administrators and successors.  All obligations imposed upon the Executive
and all rights granted to the Company under this Agreement shall be binding
upon the Executive’s heirs, executors, administrators and successors.  This Agreement is not assignable by the
Executive.

[The remainder of this page is intentionally blank.]

 4
 

 

	
  

  	
  VIRGIN MEDIA INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Bryan H. Hall

  	
   

  
	
   

  	
  Name:

  	
  Bryan H. Hall

  
	
   

  	
  Title:

  	
  Secretary and General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ACCEPTED
  AND AGREED

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/ Stephen A. Burch

  	
   

  
	
  Name:

  	
  Stephen A. Burch

  	
   

  
						

 

 5Exhibit
4.1

EXECUTION
COPY

INDENTURE

DATED
AS OF MAY 7, 2007,

between

EDISON MISSION ENERGY

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as
Trustee

Providing for the
issuance from time to

time of Notes in one or more series

CROSS-REFERENCE
TABLE* 

	
  Trust Indenture

  Act of 1939 Section

  	
   

  	
  Indenture Section

  
	
  310(a)(1)

  	
   

  	
  5.8

  
	
  (a)(2)

  	
   

  	
  5.8

  
	
  312(a)

  	
   

  	
  2.6

  
	
  313

  	
   

  	
  5.12

  
	
  314(a)(1)

  	
   

  	
  3.4

  
	
  (a)(2)

  	
   

  	
  3.4

  
	
  (a)(3)

  	
   

  	
  5.12

  
	
  (a)(4)

  	
   

  	
  3.3

  
	
  (c)(1)

  	
   

  	
  11.5

  
	
  (c)(2)

  	
   

  	
  11.5

  
	
  (e)

  	
   

  	
  11.5

  
	
  315(a)

  	
   

  	
  5.1(a)

  
	
  (c)

  	
   

  	
  5.1

  
	
  (d)

  	
   

  	
  5.1(a)

  
	
  316(a)(1)

  	
   

  	
  4.8

  
	
  (b)

  	
   

  	
  4.10

  
	
  (c)

  	
   

  	
  6.2

  
	
  317(a)

  	
   

  	
  4.2

  
	
  (b)

  	
   

  	
  2.5

  
	
  318(a)

  	
   

  	
  11.10

  

 

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

TABLE OF
CONTENTS

	
  

  	
   

  	
   

  	
  Page

  
	
  ARTICLE 1.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  DEFINITIONS

  	
   

  	
   

  
	
  Section 1.1

  	
  Definitions

  	
   

  	
  1

  
	
  Section 1.2

  	
  Incorporation by Reference of Trust Indenture Act

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 2.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  THE NOTES

  	
   

  	
   

  	
   

  
	
  Section 2.1

  	
  Form and Dating

  	
   

  	
  11

  
	
  Section 2.2

  	
  Amount; Issuable in Series

  	
   

  	
  12

  
	
  Section 2.3

  	
  Execution and Authentication

  	
   

  	
  13

  
	
  Section 2.4

  	
  Registrar and Paying Agent

  	
   

  	
  14

  
	
  Section 2.5

  	
  Paying Agent to Hold Money in Trust

  	
   

  	
  14

  
	
  Section 2.6

  	
  Holder Lists

  	
   

  	
  15

  
	
  Section 2.7

  	
  Transfer and Exchange

  	
   

  	
  15

  
	
  Section 2.8

  	
  Replacement Notes

  	
   

  	
  29

  
	
  Section 2.9

  	
  Outstanding Notes

  	
   

  	
  29

  
	
  Section 2.10

  	
  Temporary Notes

  	
   

  	
  30

  
	
  Section 2.11

  	
  Cancellation

  	
   

  	
  30

  
	
  Section 2.12

  	
  Defaulted Interest

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  COVENANTS OF THE COMPANY AND THE TRUSTEE

  	
   

  	
   

  
	
  Section 3.1

  	
  Payment of Principal and Interest; Payment of
  Liquidated Damages

  	
   

  	
  31

  
	
  Section 3.2

  	
  Appointment to Fill Vacancy in Office of Trustee

  	
   

  	
  31

  
	
  Section 3.3

  	
  Certificate to Trustee, Notices of Defaults

  	
   

  	
  31

  
	
  Section 3.4

  	
  Reports by the Company

  	
   

  	
  32

  
	
  Section 3.5

  	
  Restrictions on Liens

  	
   

  	
  32

  
	
  Section 3.6

  	
  Maintenance of Corporate Existence

  	
   

  	
  32

  
	
  Section 3.7

  	
  Taxes

  	
   

  	
  33

  
	
  Section 3.8

  	
  Repurchase of Notes at the Option of the Holder upon
  a Change of Control

  	
   

  	
  33

  
					

 

 ii
 

 

	
  ARTICLE 4.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EVENTS OF DEFAULT AND REMEDIES OF THE TRUSTEE AND
  NOTEHOLDERS

  	
   

  	
   

  
	
  Section 4.1

  	
  Event of Default Defined; Acceleration of Maturity;
  Waiver of Default

  	
   

  	
  34

  
	
  Section 4.2

  	
  Collection of Indebtedness by Trustee; Trustee May
  Prove Debt

  	
   

  	
  36

  
	
  Section 4.3

  	
  Application of Proceeds

  	
   

  	
  38

  
	
  Section 4.4

  	
  Suits for Enforcement

  	
   

  	
  39

  
	
  Section 4.5

  	
  Restoration of Rights on Abandonment of Proceedings

  	
   

  	
  39

  
	
  Section 4.6

  	
  Limitations of Suits by Noteholders

  	
   

  	
  39

  
	
  Section 4.7

  	
  Powers and Remedies Cumulative, Delay or Omission
  Not Waiver of Default

  	
   

  	
  40

  
	
  Section 4.8

  	
  Control by Noteholders

  	
   

  	
  40

  
	
  Section 4.9

  	
  Waiver of Past Defaults

  	
   

  	
  41

  
	
  Section 4.10

  	
  Rights of Holders to Receive Payment

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  CONCERNING THE TRUSTEE

  	
   

  	
   

  
	
  Section 5.1

  	
  Duties and Responsibilities of the Trustee During
  Default and Prior to Default

  	
   

  	
  41

  
	
  Section 5.2

  	
  Certain Rights of the Trustee

  	
   

  	
  42

  
	
  Section 5.3

  	
  Trustee Not Responsible for Recitals, Disposition of
  Notes or Application of Proceeds Thereof

  	
   

  	
  44

  
	
  Section 5.4

  	
  Trustee and Agents May Hold Notes; Collections, Etc

  	
   

  	
  44

  
	
  Section 5.5

  	
  Moneys Held by Trustee

  	
   

  	
  44

  
	
  Section 5.6

  	
  Compensation and Indemnification of Trustee and Its
  Prior Claim

  	
   

  	
  44

  
	
  Section 5.7

  	
  Right of Trustee to Rely on Officers’ Certificate,
  Etc

  	
   

  	
  45

  
	
  Section 5.8

  	
  Persons Eligible for Appointment as Trustee

  	
   

  	
  45

  
	
  Section 5.9

  	
  Resignation and Removal, Appointment of Successor
  Trustee

  	
   

  	
  45

  
	
  Section 5.10

  	
  Acceptance of Appointment by Successor Trustee

  	
   

  	
  46

  
	
  Section 5.11

  	
  Merger, Conversion, Consolidation or Succession to
  Business of Trustee

  	
   

  	
  47

  
	
  Section 5.12

  	
  Reports by Trustee

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  CONCERNING THE NOTEHOLDERS

  	
   

  	
   

  
	
  Section 6.1

  	
  Evidence of Action Taken by Noteholders

  	
   

  	
  48

  
	
  Section 6.2

  	
  Proof of Execution of Instruments and of Holding of
  Notes Record Date

  	
   

  	
  48

  
	
  Section 6.3

  	
  Holders to Be Treated as Owners

  	
   

  	
  48

  
	
  Section 6.4

  	
  Notes Owned by Company Deemed Not Outstanding

  	
   

  	
  48

  
	
  Section 6.5

  	
  Right of Revocation of Action Taken

  	
   

  	
  49

  
					

 

 iii
 

 

	
  ARTICLE 7.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SUPPLEMENTAL INDENTURES

  	
   

  	
   

  
	
  Section 7.1

  	
  Supplemental Indentures Without Consent of
  Noteholders

  	
   

  	
  49

  
	
  Section 7.2

  	
  Supplemental Indentures With Consent of Noteholders

  	
   

  	
  51

  
	
  Section 7.3

  	
  Effect of Supplemental Indenture

  	
   

  	
  52

  
	
  Section 7.4

  	
  Documents to Be Given to Trustee

  	
   

  	
  52

  
	
  Section 7.5

  	
  Notation of Notes in Respect of Supplemental
  Indentures

  	
   

  	
  52

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  MERGER, CONSOLIDATION, SALE, LEASE OR CONVEYANCE

  	
   

  	
   

  
	
  Section 8.1

  	
  Covenant Not to Merge, Consolidate, Sell, Lease or
  Transfer Assets Except Under Certain Conditions

  	
   

  	
  52

  
	
  Section 8.2

  	
  Successor Corporation Substituted

  	
   

  	
  53

  
	
  Section 8.3

  	
  Opinion of Counsel to Trustee; Officers’ Certificate

  	
   

  	
  53

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 9.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED
  MONEYS

  	
   

  	
   

  
	
  Section 9.1

  	
  Satisfaction and Discharge of Indenture

  	
   

  	
  53

  
	
  Section 9.2

  	
  Application by Trustee of Funds Deposited for
  Payment of Notes

  	
   

  	
  54

  
	
  Section 9.3

  	
  Repayment of Moneys Held by Paying Agent

  	
   

  	
  54

  
	
  Section 9.4

  	
  Return of Moneys Held by Trustee and Paying Agent
  Unclaimed for Two Years

  	
   

  	
  55

  
	
  Section 9.5

  	
  Defeasance and Discharge of Indenture

  	
   

  	
  55

  
	
  Section 9.6

  	
  Defeasance of Certain Obligations

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 10.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  REDEMPTION OF NOTES

  	
   

  	
   

  
	
  Section 10.1

  	
  Notes Redeemed in Part

  	
   

  	
  57

  
	
  Section 10.2

  	
  Notice of Redemption

  	
   

  	
  57

  
	
  Section 10.3

  	
  Payment of Notes Called for Redemption

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 11.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  MISCELLANEOUS PROVISIONS

  	
   

  	
   

  
	
  Section 11.1

  	
  Incorporators, Shareholders, Officers and Directors
  of Company Exempt from Individual Liability

  	
   

  	
  59

  
	
  Section 11.2

  	
  Provisions of the Indenture for the Sole Benefit of
  Parties and Noteholders

  	
   

  	
  59

  
	
  Section 11.3

  	
  Successors and Assigns of Company Bound by Indenture

  	
   

  	
  59

  
	
  Section 11.4

  	
  Notices and Demands on Company, Trustee and
  Noteholders

  	
   

  	
  59

  
	
  Section 11.5

  	
  Statements to Be Contained in Officers’ Certificates
  and Opinions of Counsel

  	
   

  	
  60

  
	
  Section 11.6

  	
  Payments Due on Saturdays, Sundays and Holidays

  	
   

  	
  61

  
	
  Section 11.7

  	
  New York Law to Govern

  	
   

  	
  61

  
	
  Section 11.8

  	
  Counterparts

  	
   

  	
  61

  
	
  Section 11.9

  	
  Effect of Headings

  	
   

  	
  61

  
	
  Section 11.10

  	
  Trust Indenture Act

  	
   

  	
  61

  
					

 

 iv
 

EXHIBITS

	
  Exhibit A

  	
  FORM OF NOTE

  
	
  Exhibit B

  	
  FORM OF CERTIFICATE OF TRANSFER

  
	
  Exhibit B-1

  	
  FORM OF CERTIFICATE OF ACQUIRING INSTITUTIONAL
  ACCREDITED INVESTOR

  
	
  Exhibit C

  	
  FORM OF CERTIFICATE OF EXCHANGE

  

 

 v

INDENTURE, dated as of May 7, 2007, between EDISON
MISSION ENERGY, a Delaware corporation (the “Company”), and WELLS FARGO
BANK, NATIONAL ASSOCIATION, a national banking association, as trustee (the “Trustee”).

WITNESSETH:

WHEREAS, the Company has duly authorized the issue of
its senior notes to be issued in one or more series (the “Notes”), and
to provide, among other things, for the authentication, delivery and
administration thereof, the Company has duly authorized the execution and
delivery of this Indenture; and

WHEREAS, all things necessary to make the Notes, when
executed by the Company and authenticated and delivered by the Trustee as in
this Indenture provided, the valid, binding and legal obligations of the
Company, and to constitute these presents a valid Indenture and agreement
according to its terms, have been done;

NOW, THEREFORE:

In consideration of the premises and the purchases of
the Notes by the Holders (as defined herein) thereof, the Company and the
Trustee mutually covenant and agree for the equal and proportionate benefit of
the respective Holders from time to time of the Notes as follows:

ARTICLE 1.

DEFINITIONS

Section 1.1                                   Definitions.

The following terms (except as otherwise expressly
provided) for all purposes of this Indenture shall have the respective meanings
specified in this Section.  All
accounting terms used herein and not expressly defined shall have the meanings
given to them in accordance with GAAP (as defined herein).  The words “herein,” “hereof” and “hereunder”
and other words of similar import refer to this Indenture as a whole and not to
any particular Article, Section or other subdivision.  References to sections or rules under the
Securities Act will be deemed to include substitute, replacement or successor
sections or rules adopted by the SEC from time to time.  The term “or” is not exclusive.  The terms defined in this Article include the
plural as well as the singular.

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

“Additional Notes” means “Additional Notes” as
defined in each Series Supplemental Indenture.

“Affiliate” of any specified Person means any
other Person directly or indirectly controlling or controlled by or under
direct or indirect common control with such specified Person.  For purposes of this definition, “control,”
as used with respect to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of such Person, whether through the ownership of voting securities, by
agreement or otherwise; provided that beneficial ownership of 10% or more of
the Voting Stock of a Person will be deemed to be control.  For purposes of this definition, the terms “controlling,”
“controlled by” and “under common control with” have correlative meanings.

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

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

“Authentication Order” has the meaning set
forth in Section 2.3 hereof.

“Bankruptcy Law” means Title 11, U.S. Code or
any similar federal or state law for the relief of debtors.

“Beneficial Owner” has the meaning assigned to
such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in
calculating the beneficial ownership of any particular “person” (as that term
is used in Section 13(d)(3) of the Exchange Act), such “person” will be
deemed to have beneficial ownership of all securities that such “person” has
the right to acquire by conversion or exercise of other securities, whether
such right is currently exercisable or is exercisable only after the passage of
time.  The terms “beneficially owns” and “beneficially
owned” have corresponding meanings.

“Board of Directors” means:

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

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

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

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

“Broker-Dealer” has the meaning set forth in
the Registration Rights Agreement.

“Business Day” means a day which is neither a
legal holiday nor a day on which banking institutions (including, without
limitation, the Federal Reserve System) are authorized or required by law or
regulation to close in the City of New York.

 2
 

“Capital Stock” means:

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

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

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

(4)                                  any
other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing
Person, but excluding from all of the foregoing any debt securities convertible
into Capital Stock, whether or not such debt securities include any right of
participation with Capital Stock.

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

a)              the
adoption of a plan relating to the Company’s liquidation or dissolution;

b)             the
consummation of any transaction (including any merger or consolidation) the
result of which is that any “person” (as that term is used in Section 13(d) of
the Exchange Act) becomes the direct Beneficial Owner of more than 50% of the
Company’s Voting Stock, other than (a) Edison International or (b) any entity
at least a majority of the Voting Stock of which is directly or indirectly owned
by (i) Edison International or (ii) substantially the same holders of the
Voting Stock of Edison International immediately before any transaction which
created such entity, in each case measured by voting power rather than number
of shares and calculated on a diluted basis; or

c)              the
direct or indirect sale, lease or conveyance of all or substantially all the
assets of the Company and its subsidiaries taken as a whole to any “person” (as
defined in (b) above) other than (a) Edison International or (b) any entity at
least a majority of the Voting Stock of which is directly or indirectly owned
by (i) Edison International or (ii) substantially the same holders of the
Voting Stock of Edison International immediately before any transaction which
created such entity, measured by voting power rather than number of shares and
calculated on a diluted basis.

“Change of Control Offer” has the meaning set
forth in Section 3.8 hereto.

“Change of Control Offer Period” has the
meaning set forth in Section 3.8 hereto.

“Change of Control Purchase Date” has the
meaning set forth in Section 3.8 hereto.

“Change of Control Purchase Price” has the
meaning set forth in Section 3.8 hereto.

“Change of Control Triggering Event” means the
occurrence of both a Change of Control and a Ratings Event.

“Clearstream” means Clearstream Banking, S.A.

 3
 

“Company” means Edison Mission Energy, and any
and all successors thereto.

“Consolidated Net Tangible Assets” means, as of
any date of determination, the total amount of all of the Company’s assets,
determined on a consolidated basis in accordance with GAAP as of such date,
less the sum of (a) the Company’s consolidated current liabilities determined
in accordance with GAAP and (b) the Company’s assets properly classified as
intangible assets in accordance with GAAP, except for any intangible assets
that are distribution or related contracts with an assignable value.

“Corporate Trust Office” means the principal
office of the Trustee at which the corporate trust business of the Trustee
shall, at any particular time, be principally administered, which office is, at
the date as of which this Indenture is dated, located at Wells Fargo Bank,
National Association, 707 Wilshire Blvd, 17th Floor, Los Angeles, CA  90017.

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

“Default” means any occurrence, circumstance or
event, or any combination thereof, which, with the lapse of time and/or the
giving of notice, would constitute an Event of Default.

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

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

“DTC” has the meaning set forth in Section
2.4 hereof.

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

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

“Edison International” means Edison
International, a California corporation.

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

“Event of Default” means any event or condition
specified as such in Section 4.1 hereof that shall have continued for
the period of time, if any, therein designated.

“Exchange Act” means the Securities Exchange
Act of 1934, as amended.

 4
 

“Exchange Notes” means the Notes issued in the
Registered Exchange Offer pursuant to Section  2.7(f) hereof.

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

“Fitch” means Fitch Ratings, or any successor
entity thereof.

“GAAP” means generally accepted accounting
principles in the United States applied on a basis consistent with the
principles, methods, procedures and practices employed in the preparation of
the Company’s audited financial statements, including, without limitation,
those set forth in the opinions and pronouncements of the Accounting Principles
Board of the American Institute of Certified Public Accountants and statements
and pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as have been approved by a significant segment
of the accounting profession, which are in effect from time to time.

“Global Note Legend” means the legend set forth
in Section 2.7(g)(ii) hereof, which is required to be placed on all
Global Notes issued under this Indenture.

“Global Notes” means, individually and
collectively, each of the Restricted Global Notes and the Unrestricted Global
Notes deposited with or on behalf of and registered in the name of the Depositary
or its nominee, substantially in the form of Exhibit A hereto, that
bears the Global Note Legend and has the “Schedule of Exchanges of Interests in
the Global Note” attached thereto.

“Good Faith Contest” means the contest of an
item if (i) the item is diligently being contested in good faith by appropriate
proceedings timely instituted, (ii) adequate reserves are established in
accordance with GAAP with respect to the contested item, if the contested item
individually or when taken together with all other contested items for which
reserves are not at the time being held could reasonably be expected to result
in liability of the Company in excess of $1,000,000, (iii) during the period of
such contest, the enforcement of any contested item is effectively stayed,
unless such enforcement would not reasonably be expected to result in a
Material Adverse Effect, (iv) any Lien filed in connection therewith shall have
been removed from the record by bonding arrangements by a reputable surety
company, or title insurance or cash deposits are otherwise provided to assure
the discharge of the Company’s obligation in connection therewith, provided
that such cash deposits, in the aggregate, shall not exceed $2,000,000, (v)
such payment shall have been made as is necessary to prevent the recordation of
a tax deed or other similar instrument conveying the property of the Company or
any portion thereof, (vi) the failure to pay or comply with the contested item
during the period of such Good Faith Contest would not reasonably be expected
to result in a Material Adverse Effect and (vii) the Company has no knowledge
of any actual or proposed deficiency or additional assessment in connection
therewith not otherwise satisfying the requirements of clauses (i) through
(vi).

“Holder,” “Holder of Notes,” “Noteholder”
and other similar terms mean the registered holder of any Note as reflected in
the registration records of the Registrar.

 5
 

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

“Indebtedness” has the meaning set forth in Section
3.5.

“Indenture” means this instrument as originally
executed and delivered or, if amended or supplemented as herein provided, as so
amended or supplemented.

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

“Initial Notes” means “Initial Notes” as
defined in each Series Supplemental Indenture.

“Initial Purchaser” means the initial purchaser
or initial purchasers of any series of Notes.

“Institutional Accredited Investor” means an
institution that is an “accredited investor” as defined in Rule 501(a)(1), (2),
(3) or (7) under the Securities Act, who is not also a QIB.

“Interest Payment Date” means, with respect to
any Note, the Stated Maturity of an installment of interest on such Note.

“Legal Holiday” means a Saturday, a Sunday or a
day on which banking institutions in the City of New York or at a place of
payment are authorized by law, regulation or executive order to remain
closed.  If a payment date is a Legal
Holiday at a place of payment, payment may be made at that place on the next
succeeding day that is not a Legal Holiday, and no interest shall accrue on
such payment for the intervening period.

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

“Liquidated Damages” means all liquidated
damages then owing pursuant to the Registration Rights Agreement.

“Material Adverse Effect” means a material
adverse effect on the condition (financial or other), business, properties or
results of operations of the Company and its subsidiaries, taken as a whole, or
on the ability of the Company to perform its obligations under this Indenture,
any indenture supplemental hereto, the Notes, any Registration Rights Agreement
or any purchase or underwriting agreement in respect of any series of Notes.

“Moody’s” means Moody’s Investors Service Inc.,
or any successor entity thereof.

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

 6
 

“Note” or “Notes” has the meaning set
forth in the recitals above.  The Initial
Notes and any Additional Notes of each series shall be treated as a single
class for all purposes under this Indenture, and unless the context otherwise
requires, all references to the Notes shall include the Initial Notes and any
Additional Notes.

“Notes Register” has the meaning set forth in Section
2.4 hereof.

“Officer” means, with respect to any Person,
the Chairman of the Board, the Chief Executive Officer, the President, the
Chief Operating Officer, the Chief Financial Officer, the Treasurer, any
Assistant Treasurer, the Controller, the Secretary or any Vice-President of
such Person.

“Officers’ Certificate” means a certificate
signed on behalf of the Company by the Chairman of the Board of Directors or
the President or any Vice President and by the Chief Financial Officer or the
Secretary or any Assistant Secretary or the Treasurer or any Assistant
Treasurer of the Company and delivered to the Trustee.  Each such certificate shall include the
statements provided for in Section 11.5 hereof, if and to the extent
required thereby.

“Opinion of Counsel” means an opinion in
writing signed by legal counsel, who may be an employee of or counsel to the
Company.  Each such opinion shall include
the statements provided for in Section 11.5 hereof, if and to the extent
required thereby.

“Original Issue Date” of any Note (or portion
thereof) means the earlier of (a) the date of such Note or (b) the date of any
Note (or portion thereof) in exchange for which such Note was issued (directly
or indirectly) on registration of transfer, exchange or substitution.

“Outstanding”, when used with reference to
Notes, means, subject to the provisions of Sections 2.9 and 6.4
hereof, as of any particular time, all Notes authenticated and delivered by the
Trustee under this Indenture, except:

(i)                                     Notes
theretofore canceled by the Trustee or delivered to the Trustee for
cancellation, or which shall have been paid pursuant to Section 2.8
hereof (other than any such Notes in respect of which there shall have been
presented to the Trustee proof satisfactory to it that such Notes are held by a
bona fide purchaser in whose hands the Notes are valid obligations of the
Company); and

(ii)                                  Notes,
or portions thereof, for the payment or redemption of which moneys or direct
obligations of the United States of America backed by its full faith and credit
in the necessary amount shall have been deposited in trust with the Trustee or
with any paying agent (other than the Company) or shall have been set aside,
segregated and held in trust by the Company (if the Company shall act as its
own paying agent), provided that if such Notes are to be redeemed prior to the
maturity thereof, written notice of such redemption shall have been herein
provided, or provision satisfactory to the Trustee shall have been given as
herein provided, or provision satisfactory to the Trustee shall have been made
for giving such notice.

 7
 

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

“Paying Agent” has the meaning set forth in Section
2.4 hereof.

“Person” means an individual, a corporation, a
partnership, a limited liability company, an association, a trust or any other
entity or organization, including a government or political subdivision or an
agency or instrumentality thereof.

“Private Placement Legend” means the legend set
forth in Section 2.7(g)(i) hereof to be placed on all Notes issued under
this Indenture except where otherwise permitted by the provisions of this
Indenture.

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

“Rating Agency” means (a) each of Moody’s,
S&P and Fitch; and (b) if any of Moody’s, S&P or Fitch cease to rate
the Notes or fail to make a rating of the Notes publicly available for reasons
outside of the control of the Company, a “nationally recognized statistical
rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the
Exchange Act, selected by the Company (as certified by a resolution of the
Board of Directors) as a replacement agency for Moody’s, S&P or Fitch, as
the case may be.

“Ratings Event” means the occurrence of the
events described in (a) or (b) below, during the period beginning on the
earlier of (i) the date of the public notice of the intention of the Company or
Edison International to effect a Change of Control and (ii) the occurrence of a
Change of Control, and, in either case, ending 90 days after the occurrence of
such Change of Control: (a) if three Rating Agencies are continuing to provide
ratings for the Notes on such date, more than one of the Rating Agencies rating
the Notes at such time shall downgrade, below the rating as of the date hereof,
its respective rating of the Notes as a result of such Change of Control or (b)
if fewer than three Rating Agencies are continuing to provide ratings for the
Notes on such date, any of the Rating Agencies rating the Notes at such time
shall downgrade, below the rating as of the date hereof, its respective rating
of the Notes as a result of such Change of Control; provided, however, notwithstanding the foregoing, a Ratings
Event otherwise arising by virtue of a particular downgrade shall not be deemed
to have occurred in respect of a particular Change of Control (and thus shall
not be deemed a Ratings Event for purposes of the definition of a Change of
Control Triggering Event hereunder) if any Rating Agency making the downgrade
to which this definition would otherwise apply does not announce or publicly
confirm or inform the Trustee in writing at its request that the downgrade was
the result, in whole or in part, of any event or circumstance comprised of or
arising as a result of, or in respect of, the applicable Change of Control
(whether or not the applicable Change of Control shall have occurred at the
time of the Ratings Event).

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

“Registrar” has the meaning set forth in Section
2.4 hereof.

 8
 

“Registration Rights Agreement” means the Registration
Rights Agreement, dated as of May 7, 2007, between the Company and the other
parties named on the signature pages thereof, as such agreement may be amended,
modified or supplemented from time to time and with respect to any Additional
Notes, one or more registration rights agreements between the Company and the
other parties thereto, as such agreement(s) may be amended, modified or
supplemented from time to time, relating to rights given by the Company to the
purchasers of Additional Notes, or any additional series of Notes issued after
the date hereof, to register such Additional Notes, or exchange such Additional
Notes, or additional series of Notes, for securities registered under the
Securities Act.

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

“Regulation S Global Note” means a Global Note
substantially in the form of Exhibit A hereto bearing the Global Note
Legend, the Private Placement Legend and the ERISA Legend and deposited with or
on behalf of and registered in the name of the Depositary or its nominee,
issued in a denomination equal to the outstanding principal amount of the Notes
of a series sold in reliance on Rule 903 of Regulation S.

“Responsible Officer,” when used with respect
to the Trustee, means any officer of the Trustee assigned by the Trustee to
administer its corporate trust matters.

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

“Restricted Global Note” means a Global Note
bearing the Private Placement Legend and deposited with or on behalf of, and
registered in the name of, the Depositary or its nominee.

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

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

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

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

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

“S&P” means Standard & Poor’s, a
division of The McGraw-Hill Companies, Inc., or any successor entity thereof.

“SEC” means the Securities and Exchange
Commission.

“Securities Act” means the Securities Act of
1933, as amended.

“Series Supplemental Indenture” means an
indenture supplemental to this Indenture entered into by the Company and the
Trustee for the purpose of establishing, in accordance with Article 2 of
this Indenture, the title, form and terms of the Notes of any series.

 9
 

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

“Stated Maturity” means, with respect to any
debt security or any installment of interest thereon, the date specified in
such debt security as the fixed date on which any principal of such debt
security or any such installment of interest is due and payable.

“Subsidiary” means, with respect to any
specified Person:

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

(2) any partnership (a) the sole general partner or
the managing general partner of which is such Person or a Subsidiary of such
Person or (b) the only general partners of which are that Person or one or more
subsidiaries of that Person (or any combination thereof).

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

“Trustee” means the entity identified as “Trustee”
in the first paragraph hereof until the appointment of a successor trustee
pursuant to Article 5, after which “Trustee” shall mean such successor
trustee.

“Unrestricted Definitive Note” means a
Definitive Note that does not bear and is not required to bear the Private
Placement Legend.

“Unrestricted Global Note” means a Global Note
that does not bear and is not required to bear the Private Placement Legend.

“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 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.

 10
 

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

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

Section 1.2                                   Incorporation
by Reference of Trust Indenture Act.

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

The following TIA terms used in this Indenture have
the following meanings:

“indenture securities” means the Notes;

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

“indenture to be qualified” means this
Indenture;

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

“obligor” on the Notes means the Company and
any successor obligor upon the Notes.

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

ARTICLE 2.

THE NOTES

Section 2.1                                   Form
and Dating.

(a)                               General.  The Notes and the Trustee’s certificate of authentication
shall be substantially in the form of Exhibit A hereto.  The Notes may have notations, legends or
endorsements required by law, stock exchange rule or usage.  Each Note shall be dated the date of its
authentication.  The Notes shall be in
denominations of $2,000 and integral multiples of $1,000 in excess
thereof.  Interest on the Notes shall be
computed on the basis of a 360-day year consisting of twelve 30-day months.

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

 11
 

For purposes of this Article 2, the
unrestricted Notes pertaining to previously restricted Notes (such as the
unrestricted Notes that may be exchanged for restricted Notes pursuant to a
Registered Exchange Offer) shall be deemed to be Notes of the same series,
notwithstanding that such unrestricted Notes and restricted Notes may be
designated as different series and have been issued under different Series
Supplemental Indentures.

(b)                               Global
Notes.  Notes issued in global form
shall be substantially in the form of Exhibit A hereto (including the
Global Note Legend and the ERISA Legend thereon and the “Schedule of Exchanges
of Interests in the Global Note” attached thereto).  Notes issued in definitive form shall be
substantially in the form of Exhibit A hereto (including the ERISA
Legend but without the Global Note Legend thereon and without the “Schedule of
Exchanges of Interests in the Global Note” attached thereto).  Each Global Note shall represent such of the
outstanding Notes as shall be specified therein and each shall provide that it
represents the aggregate principal amount of outstanding Notes from time to
time endorsed thereon and that the aggregate principal amount of outstanding
Notes represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges and redemptions.  Any endorsement of a Global Note to reflect
the amount of any increase or decrease in the aggregate principal amount of
outstanding Notes represented thereby shall be made by the Trustee or the
Custodian, at the direction of the Trustee, in accordance with instructions
given by the Holder thereof as required by Section 2.7 hereof.

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

Section 2.2                                   Amount;
Issuable in Series.

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

The Notes may be issued in one or more series.  There shall be established in one or more
Series Supplemental Indentures, prior to the issuance of Notes of any series:

(a)                               the
title of the Notes of such series (which shall distinguish the Notes of such
series from all other Notes);

(b)                               any
limit upon the aggregate principal amount of the Notes of such series that may
be authenticated and delivered under this Indenture (except for Notes authenticated
and delivered upon registration of transfer of, or in exchange for, or in lieu
of, other Notes of such series pursuant to Section 2.7(f), 2.8, 2.10,
7.5  or  10.1 and except for Notes that are deemed never to
have been authenticated and delivered hereunder);

(c)                                the
date or dates on which the principal of the Notes of such series is payable,
the amounts of principal payable on such date or dates and the regular record
date for the determination of Holders to whom principal is payable; and the date
or dates on or as of which the Notes of such series shall be dated, if other
than as provided in the first paragraph of Section 2.1(a);

 12
 

(d)                               the
rate or rates at which the Notes of such series shall bear interest, or the
method by which such rate or rates shall be determined, the date or dates from
which such interest shall accrue, the interest payment dates on which such
interest shall be payable and the regular record date for the determination of
Holders to whom interest is payable, and the basis of computation of interest,
if other than as provided in the first paragraph of Section 2.1(a);

(e)                                if
other than as provided in Section 2.4, the place or places where (i) the
principal of and interest on Notes of such series shall be payable, (ii) Notes
of such series may be surrendered for registration of transfer or exchange and
(iii) notices and demands to or upon the Company in respect of the Notes of
such series and this Indenture may be served;

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

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

(h)                               if
other than minimum denominations of $2,000 and any integral multiples of $1,000
in excess thereof, the denominations in which Notes of such series shall be
issuable;

(i)                                  any
other terms of such series (which terms shall not be inconsistent with the
provisions of this Indenture, except as provided by Section 7.1(h)
hereof);

(j)                                   any
trustees, authenticating or paying agents, warrant agents, transfer agents or
registrars with respect to the Notes of such series if different than those
provided for herein; and

(k)                               CUSIP
numbers, if any.

Section 2.3                                   Execution
and Authentication.

Two Officers shall sign the Notes for the Company by
manual or facsimile signature.

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

A Note shall not be valid until authenticated by the
manual signature of the Trustee.  The
signature shall be conclusive evidence that the Note has been authenticated
under this Indenture.

The Trustee shall, upon a written order of the Company
signed by an Officer (an “Authentication Order”), authenticate the Notes
of a given series for original issue that may be validly issued under this
Indenture up to the aggregate principal amount, if applicable, stated in the
applicable Series Supplemental Indenture. 
The aggregate principal amount of Notes of a given series outstanding at
any time may not exceed such amount except as provided in Section 2.8
hereof.

 13
 

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

Section 2.4                                   Registrar
and Paying Agent.

The Company shall maintain, in Minneapolis, Minnesota,
an office or agency where Notes may be presented for registration of transfer
or for exchange (“Registrar”) and an office or agency where Notes may be
presented for payment (“Paying Agent”) and an office or agency where
notices and demands to or upon the Company in respect of the Notes or this
Indenture may be served.  The Registrar
shall keep a register (the “Notes Register”) of the Notes and of their
transfer and exchange.  The Company may
appoint one or more co-registrars and one or more additional paying
agents.  The term “Registrar”
includes any co-registrar and the term “Paying Agent” includes any
additional paying agent.  The Company may
change any Paying Agent or Registrar without notice to any Holder.  The Company shall notify the Trustee in
writing of the name and address of any Agent not a party to this
Indenture.  If the Company fails to
appoint or maintain another entity as Registrar or Paying Agent, the Trustee
shall act as such and shall accept presentations, notices and demands hereunder
at the Corporate Trust Office.  The
Company or any of its Subsidiaries may act as Paying Agent or Registrar.

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

The Company initially appoints the Trustee to act as
the Registrar and Paying Agent and to act as Custodian with respect to the
Global Notes and designates the Trustee’s Minneapolis office as the office or
agency referred to in the first sentence of this Section.

Section 2.5                                   Paying
Agent to Hold Money in Trust.

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

The Company shall, prior to each due date, or not
later than 11:00 AM New York City time on each due date, of the principal of,
premium, and Liquidated Damages, if any, or interest on the Notes, deposit with
the Paying Agent a sum sufficient to pay such principal, premium, or interest,
and (unless such Paying Agent is the Trustee) the Company shall promptly notify
the Trustee of any failure to take such action.

 14
 

Anything in this Section 2.5 to the contrary
notwithstanding, the Company may at any time, for the purpose of obtaining
satisfaction and discharge of this Indenture or for any other reason, pay or
cause to be paid to the Trustee all sums held in trust by any Paying Agent
hereunder, as required by this Section 2.5, such sums to be held by the
Trustee upon the trusts herein contained.

Anything in this Section to the contrary
notwithstanding, the agreement to hold sums in trust as provided in this Section
2.5 is subject to the provisions of Section 9.1 and Section 9.3
hereof.

Section 2.6                                   Holder
Lists.

The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of all Holders and shall otherwise comply with TIA § 312(a).  If the Trustee is not the Registrar, the
Company shall furnish to the Trustee at least seven Business Days before each
interest payment date and at such other times as the Trustee may request in
writing, a list in such form and as of such date as the Trustee may reasonably
require of the names and addresses of the Holders of Notes and the Company
shall otherwise comply with TIA § 312(a).

Section 2.7                                   Transfer
and Exchange.

(a)                               Transfer
and Exchange of Global Notes.  A
Global Note may not be transferred except as a whole except by the Depositary
to a nominee of the Depositary, by a nominee of the Depositary to the
Depositary or to another nominee of the Depositary, or by the Depositary or any
such nominee to a successor Depositary or a nominee of such successor
Depositary.  All Global Notes will be
exchanged by the Company for Definitive Notes if (i) the Company delivers to
the Trustee notice from the Depositary that it is unwilling or unable to
continue to act as Depositary for any of the Global Notes or that it is no
longer a clearing agency registered under the Exchange Act and, in either case,
a successor Depositary is not appointed by the Company within 120 days after
the date of such notice from the Depositary, (ii) there shall have occurred and
be continuing a Default or Event of Default with respect to the applicable
Notes and beneficial owners holding interests representing an aggregate
principal amount of at least 51% of such Notes represented by Global Notes
advise the Trustee in writing that the continuation of a book-entry system through
the Depositary is no longer in such owners’ best interests or (iii) the Company
executes and delivers to the Trustee an order that the Global Notes will be so
exchangeable.  Upon the occurrence of any
of the preceding events in clauses (i), (ii) or (iii) above, Definitive Notes
shall be issued in such names as the Depositary shall instruct the Trustee in
writing.  Global Notes also may be
exchanged or replaced, in whole or in part, as provided in Sections 2.8
and 2.10 hereof.  Every Note
authenticated and delivered in exchange for, or in lieu of, a Global Note or
any portion thereof, pursuant to this Section 2.7 or Section 2.8
or 2.10 hereof shall be authenticated and delivered in the form of, and
shall be, a Global Note, except as otherwise provided herein.  A Global Note may not be exchanged for
another Note other than as provided in this Section 2.7(a); however,
beneficial interests in a Global Note may be transferred and exchanged as
provided in Section 2.7(b), (c) or (f) hereof.

 15
 

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

(i)                                     Transfer of Beneficial Interests in the Same Global
Note.  Beneficial interests in
any Restricted Global Note may be transferred to Persons who take delivery
thereof in the form of a beneficial interest in the same Restricted Global Note
in accordance with the transfer restrictions set forth in the Private Placement
Legend; provided, however, that prior to the expiration of the Restricted
Period, transfers of beneficial interests in the Regulation S  Global Note may not be made to a U.S. Person
or for the account or benefit of a U.S. Person (other than an Initial
Purchaser).  Beneficial interests in any
Unrestricted Global Note may be transferred to Persons who take delivery
thereof in the form of a beneficial interest in an Unrestricted Global
Note.  No written orders or instructions
shall be required to be delivered to the Registrar to effect the transfers
described in this Section 2.7(b)(i).

(ii)                                  All Other Transfers and Exchanges of Beneficial
Interests in Global Notes.  In
connection with all transfers and exchanges of beneficial interests that are
not subject to Section 2.7(b)(i) above, the transferor of such beneficial
interest must deliver to the Registrar either (A) (1) a written order from a
Participant or an Indirect Participant given to the Depositary in accordance
with the Applicable Procedures directing the Depositary to credit or cause to
be credited a beneficial interest in another Global Note in an amount equal to
the beneficial interest to be transferred or exchanged and (2) instructions
given in accordance with the Applicable Procedures containing information
regarding the Participant account to be credited with such increase or (B) (1)
a written order from a Participant or an Indirect Participant given to the
Depositary in accordance with the Applicable Procedures directing the
Depositary to cause to be issued a Definitive Note in an amount equal to the beneficial
interest to be transferred or exchanged and (2) instructions given by the
Depositary to the Registrar containing information regarding the Person in
whose name such Definitive Note shall be registered to effect the transfer or
exchange referred to in clause (B)(1) above. 
Upon consummation of an Registered Exchange Offer by the Company in
accordance with Section 2.7(f) hereof, the requirements of this Section
2.7(b)(ii) shall be deemed to have been satisfied upon receipt by the
Registrar of the instructions contained in the Letter of Transmittal delivered
by the Holder of such beneficial interests in the Restricted Global Notes of
the applicable series.  Upon satisfaction
of all of the requirements for transfer or exchange of beneficial interests in Global
Notes contained in this Indenture and the Notes or otherwise applicable under
the Securities Act, the Trustee shall adjust the principal amount of the
relevant Global Note(s) pursuant to Section 2.7(h) hereof.

 16

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

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

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

(C)                                if
the transferee will take delivery in the form of a beneficial interest in a IAI
Global Note, then the transferor must deliver a certificate in the form of Exhibit
B hereto, including the certifications, certificates and Opinion of Counsel
required by item (3) thereof, if applicable.

(iv)                              Transfer
and Exchange of Beneficial Interests in the Restricted Global Note of a Series
for Beneficial Interests in the Unrestricted Global Note of Such Series.  A beneficial interest in the Restricted
Global Note of a series may be exchanged by any holder thereof for a beneficial
interest in the Unrestricted Global Note of such series, or transferred to a Person
who takes delivery thereof in the form of a beneficial interest in the
Unrestricted Global Note of such series, if the exchange or transfer complies
with the requirements of Section 2.7(b)(ii) and:

(A)                              such
exchange or transfer is effected pursuant to the Registered Exchange Offer in
accordance with the Registration Rights Agreement and the holder of the
beneficial interest to be exchanged, in the case of an exchange, or the
transferee, in the case of a transfer, certifies in the applicable Letter of
Transmittal that it is not (1) a Broker-Dealer, (2) a Person participating in
the distribution of the Exchange Notes or (3) a Person who is an affiliate (as
defined in Rule 144) of the Company (or such other certification as the Company
determines to be required under applicable law);

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

(C)                                such
transfer is effected by a Broker-Dealer pursuant to the Registered Exchange
Offer Registration Statement in accordance with the Registration Rights
Agreement; or

(D)                               the
Registrar receives the following:

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

 17
 

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

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

If any such transfer is effected pursuant to
subparagraph (B) or (D) above at a time when an Unrestricted Global Note of the
applicable series has not yet been issued, the Company shall issue and, upon
receipt of an Authentication Order in accordance with Section 2.3
hereof, the Trustee shall authenticate, one or more Unrestricted Global Notes
of such series in an aggregate principal amount equal to the aggregate
principal amount of beneficial interests transferred pursuant to subparagraph
(B) or (D) above.

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

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

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

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

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

 18
 

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

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

(E)                                 if
such beneficial interest is being transferred to an Institutional Accredited
Investor in reliance on an exemption from the registration requirements of the
Securities Act other than those listed in subparagraphs (B) through (D) above,
a certificate to the effect set forth in Exhibit B hereto, including the
certifications, certificates and Opinion of Counsel required by item (3)
thereof, if applicable;

(F)                                 if
such beneficial interest is being transferred to the Company or any of its
Subsidiaries, a certificate to the effect set forth in Exhibit B hereto,
including the certifications in item (3)(b) thereof; or

(G)                                if
such beneficial interest is being transferred pursuant to an effective
registration statement under the Securities Act, a certificate to the effect
set forth in Exhibit B hereto, including the certifications in item
(3)(c) thereof,

the Trustee shall cause the aggregate principal amount
of the Global Note of such series to be reduced accordingly pursuant to Section
2.7(h) hereof, and the Company shall execute and the Trustee shall
authenticate and deliver to the Person designated in the instructions a
Definitive Note in the appropriate principal amount.  Any Definitive Note issued in exchange for a
beneficial interest in a Restricted Global Note pursuant to this Section
2.7(c) shall be registered in such name or names and in such authorized
denomination or denominations as the holder of such beneficial interest shall
instruct the Registrar through instructions from the Depositary and the
Participant or Indirect Participant.  The
Trustee shall deliver such Definitive Notes to the Persons in whose names such
Notes are so registered.  Any Definitive
Note issued in exchange for a beneficial interest in a Restricted Global Note
pursuant to this Section 2.7(c)(i) shall bear the Private
Placement Legend and shall be subject to all restrictions on transfer contained
therein.

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

(A)                              such
exchange or transfer is effected pursuant to the Registered Exchange Offer in
accordance with the Registration Rights Agreement and the holder of such
beneficial interest, in the case of an exchange, or the transferee, in the case
of a transfer, certifies in the applicable Letter of Transmittal that it is not
(1) a Broker-Dealer, (2) a Person participating in the distribution of the
Exchange Notes or (3) a Person who is an affiliate (as defined in Rule 144) of
the Company (or such other certifications as the Company determines to be
required under applicable law);

 19
 

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

(C)                                such
transfer is effected by a Broker-Dealer pursuant to the Registered Exchange
Offer Registration Statement in accordance with the Registration Rights
Agreement; or

(D)                               the
Registrar receives the following:

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

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

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

(iii)                               Beneficial Interests in Unrestricted Global Notes to
Unrestricted Definitive Notes. 
If any holder of a beneficial interest in an Unrestricted Global Note of
a series proposes to exchange such beneficial interest for a Definitive Note of
such series or to transfer such beneficial interest to a Person who takes
delivery thereof in the form of a Definitive Note of such series, then, upon
satisfaction of the conditions set forth in Section 2.7(b)(ii) hereof,
the Trustee shall cause the aggregate principal amount of the Unrestricted
Global Note of such series to be reduced accordingly pursuant to Section 2.7(h) hereof,
and the Company shall execute and the Trustee shall authenticate and deliver to
the Person designated in the instructions a Definitive Note of such series in
the appropriate principal amount.  Any
Definitive Note issued in exchange for a beneficial interest pursuant to this Section
2.7(c)(iii) shall be registered in such name or names and in such
authorized denomination or denominations as the holder of such beneficial
interest requests through instructions to the Registrar from or through the
Depositary and the Participant or Indirect Participant.  The Trustee shall deliver such Definitive
Notes to the Persons in whose names such Notes are so registered.  Any Definitive Note issued in exchange for a
beneficial interest pursuant to this Section 2.7(c)(iii) shall not bear
the Private Placement Legend.

 20
 

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

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

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

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

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

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

(E)                                 if
such Restricted Definitive Note is being transferred to an Institutional
Accredited Investor in reliance on an exemption from the registration
requirements of the Securities Act other than those listed in subparagraphs (B)
through (D) above, a certificate to the effect set forth in Exhibit B
hereto, including the certifications, certificates and Opinion of Counsel
required by item (3) thereof, if applicable;

(F)                                 if
such Restricted Definitive Note is being transferred to the Company or any of
its Subsidiaries, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (3)(b) thereof; or

(G)                                if
such Restricted Definitive Note is being transferred pursuant to an effective
registration statement under the Securities Act, a certificate to the effect
set forth in Exhibit B hereto, including the certifications in item
(3)(c) thereof,

 21
 

the Trustee will
cancel the Restricted Definitive Note, increase or cause to be increased the
aggregate principal amount of, in the case of clause (A) above, the appropriate
Restricted Global Note of such series, in the case of clause (B) above, the
144A Global Note of such series, in the case of clause (C) above, the
Regulation S Global Note of such series, in the case of clause (G) above, the
Unrestricted Global Note, and in all other cases, the IAI Global Note of such
series.

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

(A)                              such
exchange or transfer is effected pursuant to the Registered Exchange Offer in
accordance with the Registration Rights Agreement and the Holder, in the case
of an exchange, or the transferee, in the case of a transfer, certifies in the
applicable Letter of Transmittal that it is not (i) a Broker-Dealer, (ii) a
Person participating in the distribution of the Exchange Notes or (iii) a
Person who is an affiliate (as defined in Rule 144) of the Company;

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

(C)                                such
transfer is effected by a Broker-Dealer pursuant to the Registered Exchange
Offer Registration Statement in accordance with the Registration Rights
Agreement; or

(D)                               the
Registrar receives the following:

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

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

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

 22
 

Upon satisfaction of the conditions of any of the
subparagraphs in this Section 2.7(d)(ii), the Trustee shall cancel the
Definitive Note and increase or cause to be increased the aggregate principal
amount of the Unrestricted Global Note of such series.

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

If any such exchange or transfer from a Definitive
Note of a series to a beneficial interest is effected pursuant to subparagraphs
(ii)(B), (ii)(D) or (iii) above at a time when an Unrestricted Global Note of
such series has not yet been issued, the Company shall issue and, upon receipt
of an Authentication Order in accordance with Section 2.3 hereof, the
Trustee shall authenticate one or more Unrestricted Global Notes of such series
in an aggregate principal amount equal to the principal amount of Definitive
Notes so transferred.

(e)                                Transfer
and Exchange of Definitive Notes for Definitive Notes.  Upon request by a Holder of Definitive Notes
and such Holder’s compliance with the provisions of this Section 2.7(e),
the Registrar shall register the transfer or exchange of Definitive Notes.  Prior to such registration of transfer or
exchange, the requesting Holder shall present or surrender to the Registrar the
Definitive Notes duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by such Holder or
by its attorney, duly authorized in writing. 
In addition, the requesting Holder shall provide any additional
certifications, documents and information, as applicable, required pursuant to
the following provisions of this Section 2.7(e).

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

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

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

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

 23
 

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

(A)                              such
exchange or transfer is effected pursuant to the Registered Exchange Offer in
accordance with the Registration Rights Agreement and the Holder, in the case
of an exchange, or the transferee, in the case of a transfer, certifies in the
applicable Letter of Transmittal that it is not (1) a Broker-Dealer, (2) a
Person participating in the distribution of the Exchange Notes or (3) a Person
who is an affiliate (as defined in Rule 144) of the Company (or such other
certification as the Company determines to be required under applicable law);

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

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

(D)                               the
Registrar receives the following:

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

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

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

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

 24
 

(f)                                   Exchange
Offer.  Upon the occurrence of the
Registered Exchange Offer in accordance with a Registration Rights Agreement,
the Company shall issue and, upon receipt of an Authentication Order in
accordance with Section 2.3 hereof, the Trustee shall authenticate:

(i)                                     one
or more Unrestricted Global Notes in an aggregate principal amount equal to the
principal amount of the beneficial interests in the Restricted Global Notes
tendered for acceptance by Persons that certify in the applicable Letters of
Transmittal that (x) they are not Broker-Dealers, (y) they are not
participating in a distribution of the Exchange Notes and (z) they are not
affiliates (as defined in Rule 144) of the Company (or such other
certifications as the Company determines to be required under applicable law),
and accepted for exchange in the Registered Exchange Offer; and

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

Concurrently with the issuance of such Notes, the
Trustee will cause the aggregate principal amount of the applicable Restricted
Global Notes to be reduced accordingly, and the Company will execute and the
Trustee will authenticate and deliver to the Persons designated by the Holders
of Definitive Notes so accepted Unrestricted Definitive Notes in the
appropriate principal amount.

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

(i)                                  Private
Placement Legend.

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

“THIS SECURITY HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD,
ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE
HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR
WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH
SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS
IN THE CASE OF RULE 144A NOTES:
TWO YEARS AND IN THE CASE OF REGULATION S NOTES:
40 DAYS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON
WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS
SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE COMPANY,
(B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE
UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE

 25
 

SECURITIES ARE ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT
REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS
AND SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION
S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL “ACCREDITED INVESTOR”
WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT
THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH
AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL
AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A
VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION
OF THE SECURITIES ACT, OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S
AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO
CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM.
THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE
RESTRICTION TERMINATION DATE. AND, IN THE CASE OF REGULATION S NOTES: BY ITS
ACQUISITION HEREOF, THE HOLDER HEREOF REPRESENTS THAT IT IS NOT A U.S. PERSON
NOR IS IT PURCHASING FOR THE ACCOUNT OF A U.S. PERSON AND IS ACQUIRING THIS
SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE
SECURITIES ACT.”

(B)                                Notwithstanding
the foregoing, any Global Note or Definitive Note issued pursuant to
subparagraphs (b)(iv), (c)(ii), (c)(iii), (d)(ii), (d)(iii), (e)(ii), (e)(iii)
or (f) of this Section 2.7 (and all Notes issued in exchange therefor or
substitution thereof) shall not bear the Private Placement Legend.

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

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS
DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE
BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON
UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS
HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.8 OF THE INDENTURE, (II)
THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION
2.7(a) OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE
TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND
(IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE
PRIOR WRITTEN CONSENT OF THE COMPANY.”

 26
 

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

(iii) IAI Note
Legend.  Each Definitive Note
held by an Institutional Accredited Investor shall bear a legend in
substantially the following form:

“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.”

(iv) ERISA Legend.  All Notes will bear a legend in substantially
the following form:

“THE HOLDER OF THIS NOTE REPRESENTS THAT EITHER (I) NO
PORTION OF THE ASSETS USED BY THE HOLDER TO ACQUIRE AND HOLD THE NOTE
CONSTITUTES ASSETS OF ANY EMPLOYEE BENEFIT PLAN SUBJECT TO SECTION 406 OF THE
UNITED STATES EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”),
ANY PLAN, ACCOUNT OR OTHER ARRANGEMENT SUBJECT TO SECTION 4975 OF THE UNITED
STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR PROVISIONS
UNDER ANY FEDERAL, STATE, LOCAL, NON-UNITED STATES OR OTHER LAWS OR REGULATIONS
THAT ARE SIMILAR TO SUCH PROVISIONS OF ERISA OR THE CODE (COLLECTIVELY, “SIMILAR
LAWS”), OR ANY ENTITY WHOSE UNDERLYING ASSETS ARE CONSIDERED TO INCLUDE “PLAN
ASSETS” OF ANY SUCH PLAN, ACCOUNT OR ARRANGEMENT OR (II) THE PURCHASE AND
HOLDING OF THE NOTE (AND THE EXCHANGE OF THE NOTE FOR EXCHANGE NOTES) BY THE
HOLDER WILL NOT CONSTITUTE A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION
406 OF ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION UNDER ANY APPLICABLE
SIMILAR LAW.”

 27
 

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

(i)                                  General
Provisions Relating to Transfers and Exchanges.

(i)                                     To
permit registrations of transfers and exchanges, the Company shall execute and
the Trustee shall authenticate Global Notes and Definitive Notes upon receipt
of an Authentication Order in accordance with Section 2.3 hereof or at
the Registrar’s written request.

(ii)                                  No
service charge shall be made to a holder of a beneficial interest in a Global
Note or to a Holder of a Definitive Note for any registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
transfer tax or similar governmental charge payable in connection therewith (other
than any such transfer taxes or similar governmental charge payable upon
exchange or transfer pursuant to Sections 2.10, 3.8, 7.5
and 10.1 hereof).

(iii)                               The Registrar shall not
be required to register the transfer of or exchange any Note selected for redemption
in whole or in part, except the unredeemed portion of any Note being redeemed
in part.

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

(v)                                 Neither
the Registrar nor the Company will be required:

(A)                              to
issue, to register the transfer of or to exchange any Notes during a period
beginning at the opening of business 15 days before the day of any selection of
Notes for redemption under Article 10 hereof and ending at the close of
business on the day of selection;

(B)                                to
register the transfer of or to exchange any Note so selected for redemption in
whole or in part, except the unredeemed portion of any Note being redeemed in
part; or

 28
 

(C)                                to
register the transfer of or to exchange a Note between a record date and the
next succeeding Interest Payment Date.

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

(vii)                           The Trustee shall authenticate
Global Notes and Definitive Notes in accordance with the provisions of Section
2.3 hereof.

(viii)                        All certifications,
certificates and Opinions of Counsel required to be submitted to the Registrar
pursuant to this Section 2.7 to effect a registration of transfer or
exchange may be submitted by facsimile but originals of such opinions shall
follow by mail.

Section 2.8                                   Replacement
Notes.

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

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

Section 2.9                                   Outstanding
Notes.

The Notes outstanding at any time are all the Notes
authenticated by the Trustee except for those canceled by it, those delivered
to it for cancellation, those reductions in the interest in a Global Note
effected by the Trustee in accordance with the provisions hereof, and those
described in this Section 2.9 as not outstanding.  Except as set forth in Section 6.4
hereof, a Note does not cease to be outstanding because the Company or an
Affiliate of the Company holds the Note.

If a Note is replaced pursuant to Section 2.8
hereof it ceases to be outstanding unless the Trustee receives proof
satisfactory to it that the replaced Note is held by a bona fide purchaser.

If the principal amount of any Note is considered paid
under Section 3.1 hereof, it ceases to be outstanding and interest on it
ceases to accrue.

 29
 

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

Section 2.10                            Temporary
Notes.

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

Holders of temporary Notes shall be entitled to all of
the benefits of this Indenture.

Section 2.11                            Cancellation.

The Company at any time may deliver Notes to the
Trustee for cancellation.  The Registrar
and Paying Agent shall forward to the Trustee any Notes surrendered to them for
registration of transfer, exchange or payment. 
The Trustee and no one else shall cancel all Notes surrendered for
registration of transfer, exchange, payment, replacement or cancellation and
shall dispose of the canceled Notes pursuant to its customary practices and
procedures in effect from time to time (subject to the record retention
requirement of the Exchange Act). 
Certification of the destruction of all canceled Notes shall be
delivered to the Company.  The Company
may not issue new Notes to replace Notes that it has paid or that have been
delivered to the Trustee for cancellation, except as otherwise provided for
herein.

Section 2.12                            Defaulted
Interest.

If the Company defaults in a payment of interest on
the Notes, it shall pay the defaulted interest in any lawful manner plus, to
the extent lawful, interest payable on the defaulted interest, to the Persons
who are Holders on a subsequent special record date, in each case at the rate
provided in the Notes and in Section 3.1 hereof.  The Company shall notify the Trustee in
writing of the amount of defaulted interest proposed to be paid on each Note
and the date of the proposed payment. 
The Company shall fix or cause to be fixed each such special record date
and payment date; provided that
no such special record date shall be less than 10 days prior to the related
payment date for such defaulted interest. 
At least 15 days before the special record date, the Company (or, upon
the written request of the Company, the Trustee in the name and at the expense of
the Company) shall mail or cause to be mailed to Holders a notice that states
the special record date, the related payment date and the amount of such
interest to be paid.

 30
 

ARTICLE 3.

COVENANTS OF THE COMPANY
AND THE TRUSTEE

Section 3.1                                   Payment
of Principal and Interest; Payment of Liquidated Damages.

The Company shall duly and punctually pay or cause to
be paid the principal of, and premium, if any, and interest, if any, on, each
of the Notes at the place or places, at the respective times and in the manner
provided herein and in the applicable Series Supplemental Indenture and the
Notes. The Company will pay all Liquidated Damages, if any, in the same manner
on the dates set forth in the applicable Series Supplemental Indenture and
otherwise pursuant to and in the amounts set forth in the applicable
Registration Rights Agreement. Payment of principal of, and premium and
interest and Liquidated Damages, if any, on the Notes shall be paid by mailing
a check to or upon the written order of the registered Holders of Notes
entitled thereto at their last address as it appears on the Notes Register or,
upon written application to the Trustee (which shall be received by the Trustee
prior to the record date) by a Holder of $1,000,000 or more in aggregate
principal amount of Notes, by wire transfer of immediately available funds to
an account maintained by such Holder with a bank or other financial
institution; provided, however that (subject to the provisions of
Section 2.8 hereof) payment of principal of, and premium, if any, on any
Note may be conditioned upon presentation for payment of the certificate
representing such Note.

The Company shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal at the rate equal to the rate set forth in the applicable Series
Supplemental Indenture and the Notes, and it shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest and Liquidated Damages, if any (without regard to any
applicable grace period) from time to time at the same rate to the extent
lawful.

Section 3.2                                   Appointment
to Fill Vacancy in Office of Trustee.

The Company, whenever necessary to avoid or fill a
vacancy in the office of Trustee, shall appoint, in the manner provided in Section
5.9 hereof, a Trustee, so that there shall at all times be a Trustee
hereunder.

Section 3.3                                   Certificate
to Trustee, Notices of Defaults.

The Company shall furnish to the Trustee (i) on or
before March 31 in each year (beginning with March 31, 2008) a brief
certificate from the principal executive, financial or accounting officer of
the Company as to his or her knowledge of the Company’s compliance with all
covenants under this Indenture (such compliance to be determined without regard
to any period of grace or requirement of notice provided under this Indenture)
and (ii) upon becoming aware of any Default or Event of Default, a statement
specifying such Default or Event of Default. 
Within 30 days of its becoming aware of any Default or Event of Default,
the Trustee shall provide the Holders with a notice specifying such Default or
Event of Default.

 31
 

Section 3.4                                   Reports
by the Company.

(a)                               The
Company shall deliver to the Trustee and provide Noteholders, within 15 days
after it files them with the SEC, copies of its annual reports and of the
information, documents and other reports that the Company is required to file
with the SEC pursuant to Section 13 or 15(d) of the Exchange Act,
and shall deliver to the Trustee copies of any other report that the Company
files with the SEC.  Delivery of such
reports, information and documents to the Trustee is for informational purposes
only and the Trustee’s receipt of such shall not constitute constructive notice
of any information contained therein, including the Company’s compliance with
any of its covenants contained hereunder.

(b)                               The
Company shall, for so long as any Notes remain outstanding, if at any time it
is not required to file with the SEC the reports required by clause (a) of this
Section 3.4, furnish to the Holders of Notes and to securities analysts
and prospective investors, upon their request, the information required to be
delivered pursuant to Rule 144A(d)(4) under the Securities Act.

Section 3.5                                   Restrictions
on Liens.

The Company shall not pledge, mortgage or hypothecate,
or permit to exist, any mortgage, pledge or other lien upon any property at any
time directly owned by the Company to secure any indebtedness for money
borrowed that is incurred, issued, assumed or guaranteed by the Company (“Indebtedness”),
without providing for the Notes to be equally and ratably secured with any and
all such Indebtedness and with any other Indebtedness similarly entitled to be
equally and ratably secured; provided, however, that this
restriction shall not apply to or prevent the creation or existence of (i)
liens existing on the date of this Indenture, (ii) purchase money liens not to
exceed the cost or value of the purchased property, (iii) other liens not to
exceed 10% of Consolidated Net Tangible Assets, and (iv) liens granted in
connection with extending, renewing, replacing or refinancing, in whole or in
part, the Indebtedness (including, without limitation, increasing the principal
amount of such Indebtedness) secured by liens described in the foregoing
clauses (i) through (iii).

In the event that the Company proposes to pledge,
mortgage or hypothecate any property at any time directly owned by it to secure
any Indebtedness, other than as permitted by clauses (i) through (iv) of the
previous paragraph, the Company shall give prior 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 Notes equally and ratably with such Indebtedness.

Section 3.6                                   Maintenance
of Corporate Existence.

Subject to the provisions of Article 8 hereof,
the Company shall at all times preserve and maintain in full force and effect
(i) its corporate existence and good standing under the laws of the State of
Delaware and (ii) its qualification to do business in each other jurisdiction
in which the character of its properties or the nature of its activities make
such qualification necessary, except where the failure to be so qualified would
not reasonably be expected to result in a Material Adverse Effect.

 32

Section 3.7                                   Taxes.

The Company shall, prior to the time penalties attach
thereto, (i) file, or cause to be filed, all tax and information returns that
are required to be, or are required to have been, filed by it in any
jurisdiction, and (ii) pay or cause to be paid all taxes shown to be, or to
have been, due and payable on such returns and all other taxes lawfully imposed
and payable by it, except to the extent there is a Good Faith Contest thereof
by the Company.

Section 3.8                                   Repurchase
of Notes at the Option of the Holder upon a Change of Control.

Upon the occurrence of a Change of Control Triggering
Event, each Holder will have the right, at such Holder’s option, pursuant to an
irrevocable and unconditional offer by the Company (the “Change of Control
Offer”) on the terms set forth in this Indenture, to require the Company to
repurchase all or any part of such Holder’s Notes (provided, that the principal
amount of such Notes must be $2,000 and integral multiples of $1,000 in excess
of $2,000), at a cash price equal to 101% of the principal amount thereof (the “Change
of Control Purchase Price”), together with accrued and unpaid interest, if
any, and Liquidated Damages, if any, to the Change of Control Purchase Date.
Within 30 business days following such Change of Control Triggering Event, if
the Company has not, prior to the Change of Control Triggering Event, sent a
redemption notice for all the Notes in connection with an optional redemption
permitted by each Series Supplemental Indenture, the Company shall mail a
notice to each registered Holder briefly describing the transaction or
transactions that constitute the Change of Control Triggering Event and
offering to repurchase Notes on the date specified in such notice (the “Change
of Control Purchase Date”), which date shall be no later than 60 business
days after the occurrence of such Change of Control Triggering Event. The
Change of Control Offer shall remain open for at least 30 business days
following its commencement (the “Change of Control Offer Period”). Upon
expiration of the Change of Control Offer Period, the Company shall promptly
purchase all Notes properly tendered in response to the Change of Control
Offer. 

On or before the Change of Control Purchase Date, the
Company will (i) accept for payment Notes or portions thereof properly tendered
pursuant to the Change of Control Offer, (ii) deposit with the Paying Agent
cash sufficient to pay the Change of Control Purchase Price (together with
accrued and unpaid interest, if any, and Liquidated Damages, if any) of all
Notes so tendered and (iii) deliver to the Trustee Notes so accepted together
with an Officer’s Certificate listing the Notes or portions thereof being
purchased by the Company. The Paying Agent promptly will pay the Holders of
Notes so accepted an amount equal to the Change of Control Purchase Price
(together with accrued and unpaid interest, if any, and Liquidated Damages, if
any) for such Notes, and the Trustee promptly will authenticate and mail, or
cause to be transferred by book-entry, to each Holder new Notes equal in
principal amount to any unpurchased portion of the Notes surrendered, if any; provided that each such new Note shall be
in a principal amount of $2,000 integral multiples of $1,000 in excess of
$2,000. Any Notes so accepted for payment shall cease to accrue interest on and
after the Change of Control Purchase Date. Any Notes not so accepted will be
delivered promptly by the Company to the Holder thereof. The Company publicly
will announce the results of the Change of Control Offer on or as soon as
practicable after the Change of Control Purchase Date. 

 33
 

Any Change of Control Offer will be made in compliance
with any and all applicable laws, rules and regulations, including, if
applicable, Regulation 14E under the Exchange Act and the rules thereunder and
any and all other applicable United States Federal and state securities laws.
To the extent that the provisions of any securities laws or regulations
conflict with the provisions of this Section 3.8, the Company’s compliance
or compliance by Edison International or any of the Company’s or Edison
International’s subsidiaries with such laws and regulations shall not in and of
itself cause a breach of their obligations under this Section 3.8. 

This Section 3.8 shall be applicable, except as
described in this Section 3.8, following a Change of Control Triggering
Event notwithstanding any optional redemption rights of the Company that may be
set forth in a Series Supplemental Indenture.

Notwithstanding the foregoing, the Company shall not
be required to make a Change of Control Offer upon a Change of Control
Triggering Event if a third party makes the Change of Control Offer in the
manner, at the times and otherwise in compliance with the requirements set
forth herein applicable to a Change of Control Offer made by the Company and
purchases all Notes properly tendered and not withdrawn under the Change of
Control Offer.

The Company may make a Change of Control Offer in
advance of a Change of Control Triggering Event, and conditional upon the
occurrence of such Change of Control Triggering Event, if a definitive
agreement is in place for the Change of Control Triggering Event at the time of
making the Change of Control Offer.

ARTICLE 4.

EVENTS OF DEFAULT AND
REMEDIES OF THE TRUSTEE AND NOTEHOLDERS

Section 4.1                                   Event
of Default Defined; Acceleration of Maturity; Waiver of Default.

If one or more of the following Events of Default
(whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body or otherwise) shall have occurred and be
continuing:

(a)          default in the
payment of all or any part of the principal of, or premium, if any, on, any of
the Notes as and when the same shall become due and payable either at maturity,
upon any redemption or required repurchase, by declaration of acceleration or
otherwise; or

(b)          default in the
payment of any installment of interest upon any of the Notes as and when the
same shall become due and payable, and continuance of such default for a period
of 30 days; or

(c)           an event of
default, as defined in any instrument of the Company under which there may be issued,
or by which there may be secured or evidenced, 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 (i)
which is payable solely out of the property or assets of a partnership, joint
venture or similar entity of which the Company or any of its Subsidiaries or
Affiliates is a participant, or which is secured by a lien on the property or
assets owned or held by such entity, without further recourse to or liability
of the Company, or (ii) the principal of, and interest on, which, when added to
the principal of and interest on all other such Indebtedness (exclusive of
Indebtedness under clause (i) above), does not exceed $20,000,000; or

 34
 

(d)          failure on the part
of the Company duly to observe or perform any other of the covenants or
agreements on the part of the Company in the Notes or in this Indenture and
such failure continues for a period of 90 days after the date on which written
notice specifying such failure, stating that such notice is a “Notice of
Default” hereunder and demanding that the Company remedy the same, shall have
been given to the Company by the Trustee, or to the Company and the Trustee by
the Holders of at least 25% in aggregate principal amount of the Notes at the
time Outstanding; or

(e)           one or more final,
nonappealable judgments, decrees or orders of any court, tribunal, arbitrator,
administrative or other governmental body or similar entity for the payment of
money shall be rendered against the Company or any of its properties in an
aggregate amount in excess of $20,000,000 (excluding the amount thereof covered
by insurance) and such judgment, decree or order shall remain unvacated,
undischarged and unstayed for more than 90 days, except while being contested
in good faith by appropriate proceedings; or

(f)            a court having
jurisdiction in the premises shall enter a decree or order for relief in
respect of the Company in an involuntary case or proceeding under any
applicable bankruptcy, insolvency, reorganization or other similar law now or
hereafter in effect, or a decree or order adjudging the Company a bankrupt or
insolvent, or approving as properly filed a petition seeking reorganization,
arrangement, adjustment, or composition of or in respect of the Company under
any applicable federal or state law, or appointing a receiver, liquidator,
assignee, custodian, trustee, sequestrator or similar official of the Company
or for any substantial part of its property or ordering the winding up or
liquidation of its affairs, shall have been entered, and such decree or order
shall remain unstayed and in effect for a period of 90 consecutive days; or

(g)          the Company shall
commence a voluntary case or proceeding under any applicable federal or state
bankruptcy, insolvency, reorganization or other similar law now or hereafter in
effect or of any other case or proceeding to be adjudicated a bankrupt or
insolvent, or consent to the entry of a decree or order for relief in an
involuntary case or proceeding under any such law, or to the commencement of
any bankruptcy or insolvency case or proceeding against the Company, or the
filing by the Company of a petition or answer or consent seeking reorganization
or relief under any such applicable federal or state law, or the consent by the
Company to the filing of such petition or to the appointment of or the taking
possession by a custodian, receiver, liquidator, assignee, trustee,
sequestrator or other similar official of the Company or of any substantial
part of its property, or the making by the Company of an assignment for the
benefit of creditors, or the taking of action by the Company in furtherance of any
such action;

then and in each and every such case (other than an
Event of Default with respect to the Company specified in Section 4.1(f)
or 4.1(g) hereof), unless the principal amount of all of the Notes shall
have already become due and payable, either the Trustee or the Holders of not
less

 35
 

than 25% in aggregate principal amount of the Notes
then Outstanding hereunder, by notice in writing to the Company (and to the
Trustee if given by Noteholders), may declare the entire principal amount of
all the Notes and the interest accrued thereon to be due and payable
immediately, and upon any such declaration the same shall become immediately
due and payable.  This provision,
however, is subject to the condition that if, at any time after the principal
of the Notes shall have been so declared due and payable, and before any
judgment or decree for the payment of the moneys due shall have been obtained
or entered as hereinafter provided, the Company shall pay or shall
deposit with the Trustee a sum sufficient to pay all matured installments of
interest upon all the Notes and the principal and premium, if any, of any and
all Notes that shall have become due otherwise than by acceleration (with
interest upon such principal and premium, if any, and, to the extent that
payment of such interest is enforceable under applicable law, on overdue
installments of interest, at the rate of interest specified in the Notes, to
the date of such payment or deposit) and such amount as shall be sufficient to
cover reasonable compensation to the Trustee and each predecessor Trustee,
their respective agents, attorneys and counsel, and all other reasonable
expenses and liabilities incurred and all reasonable advances made by the
Trustee and each predecessor Trustee except as a result of gross negligence or
bad faith, and if any and all Events of Default under this Indenture, other
than the non-payment of the principal that shall have become due by
acceleration, shall have been cured, waived or otherwise remedied as provided
herein, then and in every such case the Holders of a majority in aggregate
principal amount of the Notes then Outstanding, by written notice to the
Company and to the Trustee, may waive all defaults (except, unless theretofore
cured, a default in payment of principal of, or premium, if any, or interest
on, the Notes) and rescind and annul such declaration and its consequences, but
no such waiver or rescission and annulment shall extend to or shall affect any
subsequent default or shall impair any right consequent thereon.

If an Event of Default specified in Section 4.1(f)
or 4.1(g) hereof occurs with respect to the Company, the principal of
and accrued interest on the Notes shall become and be immediately due and
payable without any declaration or other act on the part of the Trustee or any
Noteholder.

Section 4.2                                   Collection
of Indebtedness by Trustee; Trustee May Prove Debt.

The Company covenants that (a) in case default shall
be made in the payment of any installment of interest on any of the Notes when
such interest shall have become due and payable, and such default shall have
continued for a period of 30 days or (b) in case default shall be made in the
payment of all or any part of the principal of, or premium, if any, on, any of
the Notes when the same shall have become due and payable, whether upon
maturity or upon any redemption or by declaration or acceleration or otherwise,
then upon demand of the Trustee, the Company shall pay to the Trustee for the
benefit of the Holders of the Notes the whole amount that then shall have
become due and payable on all such Notes of principal, premium and interest, as
the case may be (with interest to the date of such payment upon the overdue
principal or premium and, to the extent that payment of such interest is
enforceable under applicable law, on overdue installments of interest at the
rate of interest specified in the Notes), and in addition thereto, such further
amount as shall be sufficient to cover the costs and expenses of collection,
including reasonable compensation to the Trustee and each predecessor Trustee,
their respective agents, attorneys and counsel, and any reasonable expenses and
liabilities incurred, and all reasonable advances made, by the Trustee and each
predecessor Trustee, except as a result of its gross negligence or bad faith.

 36
 

Until such demand is made by the Trustee, the Company
may pay the principal of and premium and interest on the Notes to the
registered Holders, whether or not the Notes are overdue.

In case the Company shall fail forthwith to pay such amounts
upon such demand, the Trustee, in its own name and as trustee of an express
trust, shall be entitled and empowered to institute any action or proceeding at
law or in equity for the collection of the sums so due and unpaid, and may
prosecute any such action or proceedings to judgment or final decree, and may
enforce any such judgment or final decree against the Company or other obligor
upon the Notes and collect in the manner provided by law out of the property of
the Company or other obligor upon the Notes, wherever situated, the moneys
adjudged or decreed to be payable.

In case there shall be pending proceedings relative to
the Company or any other obligor upon the Notes under Title 11 of the United
States Code or any other applicable federal or state bankruptcy, insolvency or
other similar law, or in case a receiver, assignee or trustee in bankruptcy or
reorganization, liquidator, custodian, sequestrator or similar official shall
have been appointed for or taken possession of the Company or its property or
such other obligor, or in case of any other comparable judicial proceedings
relative to the Company or other obligor upon the Notes, or to the creditors or
property of the Company or such other obligor, the Trustee, irrespective of
whether the principal of the Notes shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective or whether the
Trustee shall have made any demand pursuant to the provisions of this Section
4.2, shall be entitled and empowered, by intervention in such proceedings
or otherwise:

(a)          to file and prove a
claim or claims for the whole amount of principal, premium and interest owing
and unpaid in respect of the Notes, and to file such other papers or documents
as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for reasonable compensation to the Trustee and each
predecessor Trustee, and their respective agents, attorneys and counsel, and
for reimbursement of all reasonable expenses and liabilities incurred, and all
reasonable advances made, by the Trustee and each predecessor Trustee, except
as a result of gross negligence or bad faith) and of the Noteholders, allowed
in any judicial proceedings relative to the Company or other obligor upon the
Notes, or to the creditors or property of the Company or such other obligor;

(b)          unless prohibited by
applicable law and regulations, to vote on behalf of the Holders of the Notes
in any election of a trustee or a standby trustee in arrangement,
reorganization, liquidation or other bankruptcy or insolvency proceedings or
person performing similar functions in comparable proceedings; and

(c)           to collect and
receive any moneys or other property payable or deliverable on any such claims,
and to distribute all amounts received with respect to the claims of the
Noteholders and of the Trustee on their behalf; and any trustee, receiver, or
liquidator, custodian or other similar official is hereby authorized by each of
the Noteholders to make payments to the Trustee, and, in the event that the
Trustee shall consent to the making of payments directly to the

 37
 

Noteholders, to pay to the Trustee such amounts as
shall be sufficient to cover reasonable compensation to the Trustee, each
predecessor Trustee and their respective agents, attorneys and counsel, and all
other reasonable expenses and liabilities incurred, and all reasonable advances
made, by the Trustee and each predecessor Trustee except as a result of
negligence or bad faith.

Nothing herein contained shall be deemed to authorize
the Trustee to authorize or consent to or vote for or accept or adopt on behalf
of any Noteholders any plan or reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Noteholder in any
such proceeding except, as aforesaid, to vote for the election of a trustee in
bankruptcy or similar person.

All rights of action and of asserting claims under
this Indenture, or under any of the Notes, may be enforced by the Trustee
without the possession of any of the Notes or the production thereof at any
trial or other proceeding relative thereto, and any such action or proceeding
instituted by the Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment, subject to the payment of the
expenses, disbursements and compensation of the Trustee, each predecessor
Trustee and their respective agents and attorneys, shall be for the ratable
benefit of the Holders of the Notes.

In any proceedings brought by the Trustee (and also
any proceedings involving the interpretation of any provision of this Indenture
to which the Trustee shall be a party), the Trustee shall be held to represent
all the Holders of the Notes, and it shall not be necessary to make any Holders
of the Notes parties to any such proceedings.

Section 4.3                                   Application
of Proceeds.

Any moneys collected by the Trustee pursuant to this
Article shall be applied in the following order at the date or dates fixed by
the Trustee and, in case of the distribution of such moneys on account of
principal or interest, upon presentation of the several Notes and stamping (or
otherwise noting) thereon the payment, or issuing Notes in reduced principal
amounts in exchange for the presented Notes if only partially paid, or upon
surrender thereof if fully paid:

FIRST: To the payment of costs and expenses, including
reasonable compensation to the Trustee and each predecessor Trustee and their
respective agents and attorneys and of all reasonable expenses and liabilities
incurred, and all reasonable advances made, by the Trustee and each predecessor
Trustee, except as a result of gross negligence or bad faith, and all other
amounts due under Section 5.6 hereof;

SECOND: In case the principal and premium, if any, of
the Notes shall not have become and be then due and payable, to the payment of
interest in default in the order of the maturity of the installments of such
interest, with interest (to the extent that such interest has been collected by
the Trustee) upon the overdue installments of interest payable at the rate of
interest specified in the Notes, such payments to be made ratably to the
persons entitled thereto, without discrimination or preference;

 38
 

THIRD: In case the principal of the Notes shall have
become and shall be then due and payable, to the payment of the whole amount
then owing and unpaid upon all the Notes for principal, premium and interest,
with interest upon the overdue principal and premium, if any, and (to the
extent that such interest has been collected by the Trustee) upon overdue
installments of interest payable at the rate of interest specified in the
Notes, and in case such moneys shall be insufficient to pay in full the whole
amount so due and unpaid upon the Notes, then to the payment of such principal,
premium and interest, without preference or priority of principal or premium
over interest, or of interest over principal or premium, or of any installment
of interest over any other installment of interest, or of any Note over any
other Note, ratably to the aggregate of such principal, premium and accrued and
unpaid interest; and

FOURTH: To the payment of the remainder, if any, to
the Company or any other Person lawfully entitled thereto.

The Trustee may fix a record date and payment date for
any payment to Noteholders pursuant to this Section 4.3.

Section 4.4                                   Suits
for Enforcement.

In case an Event of Default has occurred, has not been
waived and is continuing, the Trustee may proceed to protect and enforce the
rights vested in it by this Indenture by such appropriate judicial proceedings
as the Trustee shall deem most effectual to protect and enforce any of such
rights, either at law or in equity or in bankruptcy or otherwise, whether for
the specific enforcement of any covenant or agreement contained in this
Indenture or in aid of the exercise of any power granted in this Indenture or
to enforce any other legal or equitable right vested in the Trustee by this
Indenture or by law.

Section 4.5                                   Restoration
of Rights on Abandonment of Proceedings.

In case the Trustee shall have proceeded to enforce
any right under this Indenture and such proceedings shall have been
discontinued or abandoned for any reason, or shall have been determined
adversely to the Trustee, then and in every such case the Company and the
Trustee shall be restored respectively to their former positions and rights
hereunder, and all rights, remedies and powers of the Company, the Trustee and
the Noteholders shall continue as though no such proceedings had been taken.

Section 4.6                                   Limitations
of Suits by Noteholders.

Subject to Section 4.10, no Holder of any Note
shall have any right by virtue or by availing of any provision of this
Indenture to institute any action or proceeding at law or in equity or in
bankruptcy or otherwise upon or under or with respect to this Indenture, or for
the appointment of a trustee, receiver, liquidator, custodian or other similar
official or for any other remedy hereunder, unless (i) such Holder previously
has given to a Responsible Officer of the Trustee written notice of default and
of the continuance hereof, as hereinbefore provided, (ii) the Holders of not
less than 25% in aggregate principal amount of the Notes then Outstanding have
made written request upon the Trustee to institute such action or proceeding in
its own name as Trustee hereunder and have offered to the Trustee such
reasonable security and indemnity as it may require against the costs, expenses
and liabilities to be incurred therein or thereby, (iii) the Trustee for 60
days after its receipt of such notice, request and offer of indemnity has
failed to institute any such action or proceeding and (iv) no direction
inconsistent with such written

 39
 

request has been given to the Trustee pursuant to Section
4.8 hereof; it being understood and intended, and being expressly
covenanted by the taker and Holder of every Note with every other taker and
Holder and the Trustee, that no one or more Holders of Notes shall have any
right in any manner whatever by virtue or by availing of any provision of this
Indenture to affect, disturb or prejudice the rights of any other Holder of
Notes, or to obtain or seek to obtain priority over or preference to any other
such Holder or to enforce any right under this Indenture, except in the manner
herein provided and for the equal, ratable and common benefit of all Holders of
Notes.  For the protection and
enforcement of the provisions of this Section 4.6, each and every
Noteholder and the Trustee shall be entitled to such relief as can be given
either at law or in equity.

Section 4.7                                   Powers
and Remedies Cumulative, Delay or Omission Not Waiver of Default.

No right or remedy herein conferred upon or reserved
to the Trustee or to the Noteholders is intended to be exclusive of any other
right or remedy, and every right and remedy shall, to the extent permitted by
law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

No delay or omission of the Trustee or of any Holder
of any of the Notes to exercise as aforesaid any such right or power accruing
upon any Event of Default occurring and continuing as aforesaid shall impair
any such right or power or shall be construed to be a waiver of any such Event
of Default or an acquiescence therein; and, subject to Section 4.6
hereof, every power and remedy given by this Indenture or by law to the Trustee
or to the Noteholders may be exercised from time to time, and as often as shall
be deemed expedient, by the Trustee or by the Noteholders.

Section 4.8                                   Control
by Noteholders.

The Holders of a majority in aggregate principal
amount of the Notes at the time Outstanding shall have the right to direct the
time, method and place of conducting any proceeding for any remedy available to
the Trustee, or exercising any trust or power conferred on the Trustee by this
Indenture; provided that such direction shall not be otherwise than in
accordance with law and the provisions of this Indenture; and provided  further
that (subject to the provisions of Section 5.1 hereof) the Trustee shall
have the right to decline to follow any such direction if the Trustee, being
advised by counsel, shall determine that the action or proceeding so directed
may not lawfully be taken or if the Trustee in good faith by its board of
directors, the executive committee, or a trust committee of directors or
Responsible Officers of the Trustee shall determine that the action or
proceedings so directed would involve the Trustee in personal liability, or if
the Trustee in good faith shall so determine that the actions or forbearances
specified in or pursuant to such direction shall be unduly prejudicial to the
interests of Holders of the Notes not joining in the giving of said direction,
it being understood that (subject to Section 5.1 hereof) the Trustee
shall have no duty to ascertain whether or not such actions or forbearances are
unduly prejudicial to such Holders.

 40
 

Nothing in this Indenture shall impair the right of
the Trustee in its discretion to take any action deemed proper by the Trustee
and which is not inconsistent with such direction by Noteholders.

Section 4.9                                   Waiver
of Past Defaults.

Prior to the declaration of the maturity of the Notes
as provided in Section 4.1 hereof, the Holders of a majority in
aggregate principal amount of the Notes at the time Outstanding may on behalf
of the Holders of all the Notes waive any past Default or Event of Default
hereunder and its consequences, except a Default (a) in the payment of
principal of, premium, if any, or interest on any of the Notes or (b) in
respect of a covenant or provision hereof that cannot be modified or amended
without the consent of the Holder of each Note affected.  In the case of any such waiver, the Company,
the Trustee and the Holders of the Notes shall be restored to their former
positions and rights hereunder, respectively, but no such waiver shall extend
to any subsequent or other default or impair any right consequent thereon.

Upon any such waiver, such default shall cease to
exist and be deemed to have been cured and not to have occurred, and any Event
of Default arising therefrom shall be deemed to have been cured, and not to
have occurred for every purpose of this Indenture, but no such waiver shall
extend to any subsequent or other default or Event of Default or impair any
right consequent thereon.

Section 4.10                            Rights
of Holders to Receive Payment.

Notwithstanding any other provision of this Indenture
(including, without limitation, Section 4.6 hereof), the right of any
Holder to receive, and to institute suit to enforce, payment of the principal
of, and premium, if any, and interest on the Notes on or after the respective
due dates expressed in such Notes (including upon redemption and acceleration
of the maturity of the principal of and premium, if any, and interest on the
Notes), shall not be affected or impaired, and shall be absolute and
unconditional.

ARTICLE 5.

CONCERNING THE TRUSTEE

Section 5.1                                   Duties
and Responsibilities of the Trustee During Default and Prior to Default.

The Trustee, prior to the occurrence of an Event of
Default and after the curing or waiving of all Events of Default that may have
occurred, undertakes to perform only such duties as are specifically set forth
in this Indenture.  In case an Event of
Default has occurred (which has not been cured or waived), the Trustee shall
exercise such of the rights and powers vested in it by this Indenture, and
shall use the same degree of care and skill in their exercise, as a prudent
person would exercise or use under the circumstances in the conduct of his own
affairs.

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

 41
 

(a)          prior to the
occurrence of an Event of Default and after the curing or waiving of all such
Events of Default that may have occurred:

(i)            the
duties and obligations of the Trustee shall be determined solely by the express
provisions of this Indenture, and the Trustee shall not be liable except for
the performance of such duties and obligations as are specifically set forth in
this Indenture, and no implied covenants or obligations shall be read into this
Indenture against the Trustee; and

(ii)           in
the absence of bad faith on the part of the Trustee, the Trustee may conclusively
rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon any statements, certificates or opinions furnished to
the Trustee and conforming to the requirements of this Indenture; but in the
case of any such statements, certificates or opinions which by any provision
hereof are specifically required to be furnished to the Trustee, the Trustee
shall be under a duty to examine the same to determine whether or not they
conform to the requirements of this Indenture;

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

(c)           the Trustee shall
not be liable with respect to any action taken or omitted to be taken by it in
good faith in accordance with the direction of the Holders of not less than a
majority in principal amount of the Notes at the time Outstanding relating to
the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred upon the
Trustee, under this Indenture.

None of the provisions contained in this Indenture
shall require the Trustee to expend or risk its own funds or otherwise incur
personal financial liability in the performance of any of its duties or in the
exercise of any of its rights or powers, if there shall be reasonable ground
for believing that the repayment of such funds or indemnity reasonably
satisfactory to it against such liability is not reasonably assured to it.

Section 5.2                                   Certain
Rights of the Trustee.

Subject to Section 5.1 hereof:

(a)          the Trustee may rely
conclusively and shall be fully protected in acting or refraining from acting
upon any resolution, Officers’ Certificate or any other certificate (including,
without limitation, any certificate provided to the Trustee pursuant to Section
3.3 hereof), statement, instrument, opinion, report, notice, request,
consent, order, bond, debenture, note, coupon, security or other paper document
believed by it to be genuine and to have been signed or presented by the proper
party or parties;

(b)          any request,
direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by an Officers’ Certificate (unless other evidence in
respect thereof be herein specifically prescribed) and any resolution of the
Board of Directors may be evidenced to the Trustee by a copy thereof certified
by the Secretary or an Assistant Secretary of the Company;

 42
 

(c)           the Trustee may
consult with counsel of its selection and any advice or Opinion of Counsel
shall be full and complete authorization and protection in respect of any
action taken, suffered or omitted to be taken by it hereunder in good faith and
in accordance with such advice or Opinion of Counsel;

(d)          the Trustee shall be
under no obligation to exercise any of the trusts or powers vested in it by
this Indenture at the request, order or direction of any of the Noteholders
pursuant to the provisions of this Indenture, unless such Noteholders shall
have offered to the Trustee security or indemnity reasonably satisfactory to it
against the costs, expenses and liabilities that might be incurred therein or
thereby;

(e)           the Trustee shall
not be liable for any action taken or omitted by it in good faith and believed
by it to be authorized or within the discretion, rights or powers conferred
upon it by this Indenture;

(f)            the Trustee shall
not be bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, approval, appraisal, bond, debenture, note, coupon,
security, or other paper or document unless requested in writing to do so by the
Holders of not less than a majority in aggregate principal amount of the Notes
then Outstanding; provided that if the payment within a reasonable time
to the Trustee of the costs, expenses or liabilities likely to be incurred by
it in the making of such investigation is, in the opinion of the Trustee, not
reasonably assured by the security afforded to it by the terms of this
Indenture, the Trustee may require indemnity reasonably satisfactory to it
against such expenses or liabilities as a condition to proceeding, and the
reasonable expenses of every such examination shall be paid by the Company, or
by the Trustee or any predecessor Trustee and repaid by the Company upon
demand;

(g)          the Trustee shall
not be bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document, but the Trustee may make such further inquiry
or investigation into such facts or matters as it may see fit, and, if the
Trustee shall determine to make such further inquiry or investigation, it shall
be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney;

(h)          in the absence of
bad faith on the part of the Trustee, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed
therein, upon any certificates or opinions furnished to the Trustee which
conform to the requirements of this Indenture;

(i)           the Trustee shall
not be liable for any error of judgment made in good faith by an officer or
officers of the Trustee, unless it shall be conclusively determined by a court
of competent jurisdiction that the Trustee was grossly negligent in
ascertaining the pertinent facts;

(j)            the Trustee may
execute any of the trusts or powers hereunder or perform any duties hereunder
either directly or by or through agents, attorneys, custodians or nominees
appointed with due care, and shall not be responsible for any willful
misconduct or gross negligence on the part of any agent, attorney, custodian or
nominee so appointed; and

 43
 

(k)          the Trustee shall
not be deemed to have notice of an Event of Default unless a Responsible
Officer of the Trustee has actual knowledge thereof or written notice of any
Event of Default is received by the Trustee at its Corporate Trust Office.

Section 5.3                                   Trustee
Not Responsible for Recitals, Disposition of Notes or Application of Proceeds
Thereof.

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

Section 5.4                                   Trustee
and Agents May Hold Notes; Collections, Etc.

The Trustee or any agent of the Company or the
Trustee, in its individual or any other capacity, may become the owner or
pledgee of Notes with the same rights it would have if it were not the Trustee
or such agent and may otherwise deal with the Company and receive, collect,
hold and retain collections from the Company with the same rights it would have
if it were not the Trustee or such agent.

Section 5.5                                   Moneys
Held by Trustee.

Subject to the provisions of Section 9.4
hereof, all moneys received by the Trustee shall, until used or applied as
herein provided, be held in trust for the purposes for which they were
received, but need not be segregated from other funds except to the extent
required by mandatory provisions of law. 
Neither the Trustee nor any agent of the Company or the Trustee shall be
under any liability for interest on any moneys received by it hereunder, except
as the Company and the Trustee otherwise may agree.

Section 5.6                                   Compensation
and Indemnification of Trustee and Its Prior Claim.

The Company covenants and agrees to pay to the Trustee
from time to time as shall be agreed upon between the Company and the Trustee
in writing from time to time, and the Trustee shall be entitled to reasonable
compensation (which shall not be limited by any provision of law relating to
the compensation of a trustee of an express trust), and the Company covenants
and agrees to pay or reimburse the Trustee and each predecessor Trustee upon
its request for all reasonable expenses, disbursements and advances incurred or
made by or on behalf of it in accordance with any of the provisions of this
Indenture (including the reasonable compensation and expenses and disbursements
of its counsel and of all agents and other persons not regularly in its
employ), except to the extent any such expense, disbursement or advance may
arise from the Trustee’s gross negligence or bad faith.  The Company also covenants to indemnify the
Trustee and each predecessor Trustee for, and to hold it harmless against, any
and all loss, liability, damage, claims or expenses arising out of or in
connection with the acceptance or administration of this Indenture or the
trusts hereunder and its duties hereunder and the

 44
 

performance of its duties hereunder, including the
costs and expenses of defending and investigating any claim of liability in the
premises, except to the extent any such loss, liability or expense is due to
its own gross negligence or bad faith. 
The obligations of the Company under this Section 5.6 to compensate
and indemnify the Trustee and each predecessor Trustee and to pay or reimburse
the Trustee and each predecessor Trustee for expenses, disbursements and
advances shall constitute additional indebtedness hereunder and shall survive
the satisfaction and discharge of this Indenture.

Section 5.7                                   Right
of Trustee to Rely on Officers’ Certificate, Etc.

Subject to Section 5.1 and Section 5.2
hereof, whenever in the administration of the trusts of this Indenture the
Trustee shall deem it necessary or desirable that a matter be proved or
established prior to taking or suffering or omitting any action hereunder, such
matter (unless other evidence in respect thereof be herein specifically
prescribed) may, in the absence of gross negligence or bad faith on the part of
the Trustee, be deemed to be conclusively proved and established by an Officers’
Certificate delivered to the Trustee.

Section 5.8                                   Persons
Eligible for Appointment as Trustee.

The Trustee hereunder shall at all times be a
corporation organized and doing business under the laws of the United States or
of a state thereof having a combined capital and surplus of at least
$100,000,000, and which is authorized under such laws to exercise corporate
trust powers and is subject to supervision or examination by federal or state
authority.  If such corporation publishes
reports of condition at least annually, pursuant to law or to the requirements
of a federal, state or District of Columbia supervising or examining authority,
then for the purposes of this Section 5.8, the combined capital and
surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published.  No obligor on the Notes or Person directly or
indirectly controlling, controlled by or under common control with such obligor
shall serve as Trustee.

Section 5.9                                   Resignation
and Removal, Appointment of Successor Trustee.

(a)          The Trustee may at
any time resign by giving written notice of resignation to the Company and by
mailing notice thereof by first-class mail to Holders of Notes at their last
addresses as they shall appear on the Notes Register.  Upon receiving such notice of resignation,
the Company shall promptly appoint a successor trustee by written instrument in
duplicate, executed by authority of the Board of Directors, one copy of which
instrument shall be delivered to the resigning Trustee and one copy to the
successor Trustee.  If no such successor
trustee shall have been so appointed and have accepted appointment within 30
days after the mailing of such notice of resignation, the resigning Trustee may
petition any court of competent jurisdiction, at the expense of the Company,
for the appointment of a successor trustee, or any Noteholder who has been a
bona fide Holder of a Note or Notes for at least six months may, on behalf of
itself and all others similarly situated, petition any such court for the
appointment of a successor trustee.  Such
court may thereupon, after such notice, if any, as it may deem proper and
prescribe, appoint a successor trustee.

 45
 

(b)          In case at any time
any of the following shall occur:

(i)            the
Trustee shall fail to comply with the provisions of TIA § 310(b), after written
request thereafter by the Company or by any Noteholder who has been a bona fide
Holder of a Note or Notes for at least six months;

(ii)           the
Trustee shall cease to be eligible in accordance with the provisions of Section
5.8 hereof and shall fail to resign after written request therefor by the
Company or by any such Noteholder; or

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

then, in any such case, the Company may remove the
Trustee and appoint a successor trustee by written instrument, in duplicate,
executed by order of the Board of Directors of the Company, one copy of which
instrument shall be delivered to the Trustee so removed and one copy of which
shall be delivered to the successor trustee, or any Noteholder who has been a
bona fide Holder of a Note or Notes for at least six months may, on behalf of
itself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
trustee.  Such court may thereupon, after
such notice, if any, as it may deem proper and prescribe, remove the Trustee
and appoint a successor trustee.

(c)           The Holders of a
majority in aggregate principal amount of the Notes at the time Outstanding may
at any time remove the Trustee and appoint a successor trustee by delivering to
the Trustee so removed, to the successor trustee so appointed and to the
Company the evidence provided for in Section 6.1 hereof of the action in
that regard taken by the Noteholders.

(d)          Any resignation or
removal of the Trustee and any appointment of a successor trustee pursuant to
any of the provisions of this Section 5.9 shall become effective only
upon acceptance of appointment by the successor trustee as provided in Section
5.10 hereof.

Section 5.10                            Acceptance
of Appointment by Successor Trustee.

Any successor trustee appointed as provided in Section
5.9 hereof shall execute and deliver to the Company and to its predecessor
Trustee an instrument accepting such appointment hereunder, and thereupon the
resignation or removal of the predecessor Trustee shall become effective and
such successor trustee, without any further act, deed or conveyance, shall
become vested with all rights, powers, duties and obligations of its
predecessor hereunder, with like effect as if originally named as trustee
herein; but, nevertheless, on the written request of the Company or of the
successor trustee, upon payment of its charges then unpaid, the Trustee ceasing
to act shall, subject to Section 9.4 hereof, pay over to the successor
trustee all moneys at the time held by it hereunder and shall execute and
deliver an instrument transferring to such successor trustee all such rights,
powers, duties and obligations.  Upon
request of any such successor trustee, the Company shall execute appropriate
instruments in writing for more fully and certainly vesting in and confirming
to such successor such rights and powers. 
Any Trustee ceasing to act shall, nevertheless, retain a prior claim
upon all property or funds held or collected by such Trustee to secure any
amounts then due it pursuant to the provisions of Section 5.6 hereof.

 46
 

Upon acceptance of appointment by a successor trustee
as provided in this Section 5.10, the Company shall mail notice thereof
by first-class mail to the Holders of Notes at their last addresses as they
shall appear in the Notes Register.  If
the acceptance of appointment is substantially contemporaneous with a
resignation, then the notice called for by the preceding sentence may be
combined with the notice called for by Section 5.9 hereof.  If the Company fails to mail such notice
within 10 days after acceptance of appointment by the successor trustee, the
successor trustee shall cause such notice to be mailed at the expense of the
Company.

Notwithstanding replacement of the Trustee pursuant to
this Section 5.10, the Company’s obligations under Section 5.6
hereof shall continue for the benefit of the retiring Trustee.

Section 5.11                            Merger,
Conversion, Consolidation or Succession to Business of Trustee.

Any corporation into which the Trustee may be merged
or converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation succeeding to all or substantially all of the
corporate trust business of the Trustee, shall be the successor of the Trustee
hereunder, as long as such corporation shall be eligible under the provisions
of Section 5.8 hereof, without the execution or filing of any paper or
any further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.

In case any of the Notes shall have been authenticated
but not delivered at the time such successor to the Trustee shall succeed to
the trusts created by this Indenture, any such successor to the Trustee may
adopt the certificate of authentication of any predecessor Trustee and deliver
such Notes so authenticated and, in case at that time any of the Notes shall
not have been authenticated, any successor to the Trustee may authenticate such
Notes either in the name of any predecessor hereunder or in the name of the
successor trustee, and in such cases such certificate shall have the full force
which it is anywhere in the Notes or in this Indenture provided that the
certificate of the Trustee shall have; provided that the right to adopt
the certificate of authentication of any predecessor Trustee or to authenticate
Notes in the name of any predecessor Trustee shall apply only to its successor
or successors by merger, conversion or consolidation.

Section 5.12                            Reports
by Trustee.

The Trustee shall provide to the Holders the reports
required to be provided by the Trustee pursuant to Section 313 of the
TIA.

 47
 

ARTICLE 6.

CONCERNING THE
NOTEHOLDERS

Section 6.1                                   Evidence
of Action Taken by Noteholders.

Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given or taken
by Noteholders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Noteholders, in person or by agent
duly appointed in writing, and, except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments are
received by the Trustee.  Proof of
execution of any instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Indenture and (subject to Section 5.1
and Section 5.2 hereof) conclusive in favor of the Trustee and the
Company, if made in the manner provided in this Article.

Section 6.2                                   Proof
of Execution of Instruments and of Holding of Notes Record Date.

Subject to Section 5.1 and Section 5.2
hereof, the execution of any instrument by a Noteholder or his agent or proxy
may be provided in accordance with such reasonable rules and regulations as may
be prescribed by the Trustee or in such manner as shall be satisfactory to the
Trustee.  The holding of Notes shall be
as provided by the Notes Register or by a certificate of the Registrar
thereof.  The Company may set a record
date for purposes of determining the identity of Holders of Notes entitled to
vote or consent to any action referred to in Section 6.1 hereof, which
record date may be set at any time or from time to time by written notice to
the Trustee for any date or dates (in the case of any adjournment or
resolicitation) not more than 60 days nor less than five days prior to the
proposed date of such vote or consent, and, thereafter, notwithstanding any
other provisions hereof, only Holders of Notes of record on such record date
shall be entitled to so vote or give such consent or to withdraw such vote or
consent.

Section 6.3                                   Holders
to Be Treated as Owners.

The Company, the Trustee and any agent of the Company
or the Trustee may deem and treat the Person in whose name any Note shall be
registered upon the Notes Register as the absolute owner of such Note (whether
or not such Note shall be overdue and notwithstanding any notation of ownership
or other writing thereon) for the purpose of receiving payment of or on account
of the principal of, and premium, if any, on and, subject to the provisions of
this Indenture, interest on such Note and for all other purposes, and neither
the Company nor the Trustee nor any agent of the Company or the Trustee shall
be affected by any notice to the contrary. 
All such payments so made to any such Person, or upon his order, shall
be valid and to the extent of the sum or sums so paid, effectual to satisfy and
discharge the liability for moneys payable upon any such Note.

Section 6.4                                   Notes
Owned by Company Deemed Not Outstanding.

In determining whether the Holders of the requisite
aggregate principal amount of Notes have concurred in any direction, consent or
waiver under this Indenture, Notes that are owned by the Company or any other
obligor on the Notes or by any Person directly or indirectly controlling

 48
 

or controlled by or under direct or indirect common
control with the obligor on the Notes shall be disregarded and deemed not to be
Outstanding for the purpose of any such determination, except that for the
purpose of determining whether a Responsible Officer of the Trustee shall be
protected in relying on any such direction, consent or waiver, only Notes that
the Trustee actually knows are so owned shall be so disregarded.  Notes so owned that have been pledged in good
faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such
Notes and that the pledgee is not the Company or any other obligor upon the
Notes or any Person directly or indirectly controlling or controlled by or
under direct or indirect common control with the Company or any other obligor
on the Notes.  In case of a dispute as to
such right, the advice of counsel shall be full protection in respect of any
decision made by the Trustee in accordance with such advice.  Upon request of the Trustee, the Company
shall furnish to the Trustee promptly an Officers’ Certificate listing and
identifying all Notes, if any, known by the Company to be owned or held by or
for the account of any of the above-described Persons, and, subject to Section
5.1 and Section 5.2 hereof, the Trustee shall be entitled to accept
such Officers’ Certificate as conclusive evidence of the facts therein set
forth and of the fact that all Notes not listed therein are Outstanding for the
purpose of any such determination.

Section 6.5                                   Right
of Revocation of Action Taken.

At any time prior to (but not after) the evidencing to
the Trustee, as provided in Section 6.1 hereof, of the taking of any
action by the Holders of the percentage in aggregate principal amount of the
Notes specified in this Indenture in connection with such action, any Holder of
a Note the serial number of which is shown by the evidence to be included among
the serial numbers of the Notes the Holders of which have consented to such
action may, by filing written notice at the Corporate Trust Office and upon
proof of holding as provided in this Article, revoke such action so far as
concerns such Note.  Except as aforesaid
any such action taken by the Holder of any Note shall be conclusive and binding
upon such Holder and upon all future Holders and owners of such Note and of any
Notes issued in exchange or substitution therefor, irrespective of whether or
not any notation in regard thereto is made upon any such Note.  Any action taken by the Holders of the
percentage in aggregate principal amount of the Notes specified in this
Indenture in connection with such action shall be conclusively binding upon the
Company, the Trustee and the Holders of all such Notes.

ARTICLE 7.

SUPPLEMENTAL INDENTURES

Section 7.1                                   Supplemental
Indentures Without Consent of Noteholders.

The Company, when authorized by a resolution of its
Board of Directors, and the Trustee may from time to time and at any time enter
into an indenture or indentures supplemental hereto for one or more of the
following purposes:

(a)          to convey, transfer,
assign, mortgage or pledge to the Trustee as security for the Notes any
property or assets;

 49
 

(b)          to evidence the
succession of another corporation to the Company, or successive successions,
and the assumption by the successor corporation of the covenants, agreements
and obligations of the Company pursuant to Article 8 hereof;

(c)           to add to the
covenants of the Company such further covenants, restrictions, conditions or
provisions as the Board of Directors shall consider to be for the protection of
the Holders of Notes, and to make the occurrence, or the occurrence and
continuance of a Default in any such additional covenants, restrictions,
conditions or provisions an Event of Default permitting the enforcement of all
or any of the several remedies provided in this Indenture as herein set forth; provided
that in respect of any such additional covenant, restriction, condition or
provision, such supplemental indenture may provide for a particular period of
grace after default (which period may be shorter or longer than that allowed in
the case of other Defaults) or may provide for immediate enforcement upon such
an Event of Default or may limit the remedies available to the Trustee due
solely to such an Event of Default or may limit the right of the Holders of a
majority in aggregate principal amount of the Notes to waive such an Event of
Default;

(d)          to cure any
ambiguity or to cure, correct or supplement any defective provision contained
herein or in the Notes, or to make such other provisions in regard to matters
or questions arising under this Indenture or under any supplemental indenture
as the Board of Directors may deem necessary or desirable, and in any case
which the Trustee and the Company shall determine (i) are not inconsistent with
this Indenture and the Notes and (ii) shall not adversely affect the interests
of the Holders of the Notes;

(e)           to modify or
supplement this Indenture or any indenture supplemental hereto in such manner
as to permit the qualification thereof under the TIA or any other similar
federal statute hereafter in effect;

(f)            to provide for the
issuance of additional Notes in accordance with the limitations set forth in
this Indenture as of the date of this Indenture;

(g)          to permit or
facilitate the issuance of a series of Notes pursuant to the provisions hereof;
and

(h)          to add to, change or
eliminate any of the provisions of this Indenture in respect of one or more
series of Notes, provided that any such addition, change or elimination
(A) shall neither (i) apply to any Notes of any series created prior to the
execution of such Series Supplemental Indenture and entitled to the benefit of
such provision nor (ii) modify the rights of the Holder of any such Notes with
respect to such provision or (B) shall become effective only when there is no
such Notes Outstanding.

The Trustee is hereby authorized to join in the
execution of any such supplemental Indenture, to make any further appropriate
agreements and stipulations that may be therein continued and to accept the
conveyance, transfer, assignment, mortgage or pledge of any property
thereunder, but the Trustee shall not be obligated to enter into any such
supplemental indenture that affects the Trustee’s own rights, duties,
indemnities or immunities under this Indenture or otherwise.

 50

Any supplemental indenture authorized by the
provisions of this Section 7.1 may be executed without the consent of
the Holders of any of the Notes at the time Outstanding, notwithstanding any of
the provisions of Section 7.2 hereof.

Section 7.2                                   Supplemental
Indentures With Consent of Noteholders.

With the consent (evidenced as provided in Article
6, hereof) of the Holders of not less than a majority in aggregate
principal amount of the Notes at the time Outstanding, the Company, when
authorized by a resolution of its Board of Directors, and the Trustee may, from
time to time and at any time, modify this Indenture, any indentures
supplemental hereto, the Notes or the rights of the Holders of the Notes, provided
that no such modification shall (a) change the Stated Maturity of the principal
of, or any installment of principal of or interest on, any Note, or reduce the
principal amount thereof, or reduce the rate or extend the time of payment of
interest thereon, or reduce any amount payable on redemption thereof or impair
the right of any Noteholder to institute suit for the enforcement of any
payment on or with respect to any Note or change the place or currency of
payment of principal of, or interest on, any Note, in each case without the
consent of the Holder of each Note so affected, or (b) without the consent of
the Holders of all Notes then Outstanding, (i) reduce the aforesaid percentage
of Notes the consent of the Holders of which is required for any such
modification, or the percentage of Notes the consent of the Holders of which is
required for any waiver provided for in this Indenture, (ii) change any
obligation of the Company to maintain an office or agency in the places and for
the purposes specified in Section 2.4 or (iii) make any change in Section
4.9 or this Section 7.2, except to increase any percentages or to
provide that certain other provisions of this Indenture cannot be modified or
waived without the consent of the Holders of each Outstanding Note affected
thereby.

Upon the request of the Company, accompanied by a copy
of a resolution of the Board of Directors certified by the Secretary or an
Assistant Secretary of the Company authorizing the execution of any such
supplemental indenture, and upon the filing with the Trustee of evidence of the
consent of Noteholders and other documents, if any, required by Section 6.1
hereof, the Trustee shall join with the Company in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee’s
own rights, duties, indemnities or immunities under this Indenture or
otherwise, in which case the Trustee may in its discretion, but shall not be
obligated to, enter into such supplemental indenture.

It shall not be necessary for the consent of the
Noteholders under this Section 7.2 to approve the particular form of any
proposed supplemental indenture, but it shall be sufficient if such consent
shall approve the substance thereof.

Promptly after the execution by the Company and the
Trustee of any supplemental indenture pursuant to the provisions of this Section
7.2, the Company shall mail a notice thereof by first class mail to the
Holders of Notes at their addresses as they shall appear on the Notes Register,
setting forth in general terms the substance of such supplemental indenture.  Any failure of the Company to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.

 51
 

Section 7.3                                   Effect
of Supplemental Indenture.

Upon the execution of any supplemental indenture
pursuant to the provisions hereof, this Indenture shall be and be deemed to be
modified and amended in accordance therewith and the respective rights,
limitations of rights, obligations, duties and immunities under this Indenture
of the Trustee, the Company and the Holders of Notes shall thereafter be
determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments, and all the terms and conditions of any such
supplemental indenture shall be and be deemed to be part of the terms and
conditions of this Indenture for any and all purposes.

Section 7.4                                   Documents
to Be Given to Trustee.

The Trustee, subject to the provisions of Section
5.1 and Section 5.2 hereof, shall receive an Officers’ Certificate
and an Opinion of Counsel as conclusive evidence that any such supplemental
indenture complies with the applicable provisions of this Indenture and that
all conditions precedent to the execution of such supplemental indenture have
been met.

Section 7.5                                   Notation
of Notes in Respect of Supplemental Indentures.

Notes authenticated and delivered after the execution
of any supplemental indenture pursuant to the provisions of this Article 7
may bear a notation in form approved by the Trustee as to any matters provided
for by such supplemental indenture or as to any action taken at any such
meeting as the Company shall so determine, and new Notes so modified as to
conform, in the opinion of the Trustee and the Board of Directors, to any
modification of this Indenture contained in any such supplemental indenture may
be prepared by the Company, authenticated by the Trustee and delivered in
exchange for the Notes then Outstanding, which Notes so exchanged shall be
canceled by the Trustee.

ARTICLE 8.

MERGER, CONSOLIDATION,
SALE, LEASE OR CONVEYANCE

Section 8.1                                   Covenant
Not to Merge, Consolidate, Sell, Lease or Transfer Assets Except Under Certain
Conditions.

The Company shall not merge or consolidate with or
into any other person and the Company shall not sell, lease or convey all or
substantially all of its assets to any person, unless (1) the Company is the
continuing corporation, or the successor corporation or the person that
acquires all or substantially all of the Company’s assets is a corporation
organized and existing under the laws of the United States or a State thereof
or the District of Columbia and expressly assumes all the Company’s obligations
under the Notes and this Indenture, (2) immediately after such merger,
consolidation, sale, lease or conveyance, there is no Default or Event of
Default hereunder, (3) if, as a result of the merger, consolidation, sale,
lease or conveyance, any or all of the Company’s property would become the
subject of a lien that would not be permitted by this Indenture, the Company
secures the Notes equally and ratably with the obligations secured by that lien
and (4) the Company delivers or causes to be delivered to the Trustee an
Officers’ Certificate and Opinion of Counsel each stating that the merger,
consolidation, sale, lease or conveyance comply with this Indenture.

 52
 

Section 8.2                                   Successor
Corporation Substituted.

In case of any such merger, consolidation, sale,
lease, or transfer, and following such an assumption by the successor
corporation of the Company’s obligations under the Notes and this Indenture,
such successor corporation shall succeed to and be substituted for the Company,
with the same effect as if it had been named herein.

Such successor corporation may cause to be signed, and
may issue either in its own name or in the name of the Company prior to such
succession, any or all of the Notes issuable hereunder that theretofore shall
not have been signed by the Company and delivered to the Trustee, and, upon the
order of such successor corporation, instead of the Company, and subject to all
the terms, conditions and limitations in this Indenture prescribed, the Trustee
shall authenticate and shall deliver any Notes that previously shall have been
signed and delivered by the officers of the Company to the Trustee for
authentication and any Notes that such successor corporation thereafter shall
cause to be signed and delivered to the Trustee for that purpose.  All of the Notes so issued shall in all
respects have the same legal rank and benefit under this Indenture as the Notes
theretofore or thereafter issued in accordance with the terms of this Indenture
as though all of such Notes had been issued at the date of the execution
hereof.

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

In the event of any such sale or transfer (other than
a transfer by way of lease) the Company or any successor corporation, which
shall theretofore have become such in the manner described in this Article 8,
shall be discharged from all obligations and covenants under this Indenture and
the Notes and may be liquidated and dissolved.

Section 8.3                                   Opinion
of Counsel to Trustee; Officers’ Certificate.

The Trustee, subject to the provisions of Section
5.1 and Section 5.2 hereof, shall receive an Officers’ Certificate
and an Opinion of Counsel as conclusive evidence that any such merger,
consolidation, sale, lease or transfer, and any such assumption of obligations
described in this Article 8, and any such liquidation or dissolution
described in this Article 8, complies with the applicable provisions of
this Indenture.

ARTICLE 9.

SATISFACTION AND
DISCHARGE OF INDENTURE; UNCLAIMED MONEYS

Section 9.1                                   Satisfaction
and Discharge of Indenture.

If at any time (a) the Company shall have paid or
caused to be paid the principal of and premium, if any, and interest on all the
Notes Outstanding hereunder, as and when the same shall have become due and
payable, or (b) the Company shall have delivered to the Trustee for
cancellation all Notes theretofore authenticated (other than any Notes which
shall have been destroyed, lost or stolen and which shall have been replaced or
paid as provided in Section 2.8 hereof) or (c)(i) all such Notes not
theretofore delivered to the Trustee for cancellation shall have

 53
 

become due and payable, or are by their terms to
become due and payable within one year or are to be called for redemption under
arrangements satisfactory to the Trustee for the giving of notice of
redemption, and (ii) the Company shall have irrevocably deposited or caused to
be deposited with the Trustee as trust funds the entire amount in cash (other
than moneys repaid by the Trustee or any paying agent to the Company in
accordance with Section 9.4 hereof) or U.S. Government Obligations,
maturing as to principal, premium, if any, and interest in such amounts and at
such times as will insure (without reinvestment) the availability of cash
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 at maturity all such Notes not theretofore delivered to the
Trustee for cancellation, including principal, premium, if any, and interest
due or to become due to such date of maturity as the case may be, and if, in
any such case, the Company shall also pay or cause to be paid all other sums
payable hereunder by the Company, then this Indenture shall cease to be of
further effect (except as to (i) rights of registration of transfer and
exchange, and the Company’s right to optional redemption, (ii) substitution of
apparently mutilated, defaced, destroyed, lost or stolen Notes, (iii) rights of
Holders to receive payments of principal of and premium, if any, and interest
on, the Notes upon the original stated due dates therefor (but not upon
acceleration), (iv) the rights and obligations and immunities of the Trustee
hereunder, (v) the rights of the Noteholders as beneficiaries hereof with respect
to the property so deposited with the Trustee payable to all or any of them and
(vi) the maintenance by the Company of its existence), and the Trustee, upon
written demand of the Company accompanied by an Officers’ Certificate and an
Opinion of Counsel and at the cost and expense of the Company, shall execute
proper instruments acknowledging such satisfaction of and discharging this
Indenture; provided that the rights of Holders of the Notes to receive
amounts in respect of principal of and premium, if any, and interest on the
Notes held by them shall not be delayed longer than required by then applicable
mandatory rules or policies of any securities exchange upon which the Notes are
listed.

The Company shall reimburse the Trustee for any costs
or expenses thereafter reasonably and properly incurred and shall compensate
the Trustee for any services thereafter reasonably and properly rendered by the
Trustee in connection with this Indenture or the Notes.

Section 9.2                                   Application
by Trustee of Funds Deposited for Payment of Notes.

Subject to Section 9.4 hereof, all moneys
deposited with the Trustee pursuant to Section 9.1 hereof shall be held
in trust and applied by it to the payment, either directly or through any
paying agent (including the Company acting as its own Paying Agent), to the
Holders of the particular Notes for the payment or redemption of which such
moneys have been deposited with the Trustee, of all sums due and to become due
thereon for principal, premium, if any, and interest, but such money need not
be segregated from other funds except to the extent required by law.

Section 9.3                                   Repayment
of Moneys Held by Paying Agent.

In connection with the satisfaction and discharge of
this Indenture, all moneys then held by any Paying Agent under the provisions
of this Indenture shall, upon demand of the Company, be repaid to it or paid to
the Trustee and thereupon such Paying Agent shall be released from all further
liability with respect to such moneys.

 54
 

Section 9.4                                   Return
of Moneys Held by Trustee and Paying Agent Unclaimed for Two Years.

Any moneys deposited with or paid to the Trustee or
any Paying Agent for the payment of the principal of or premium or interest on
any Note and not applied but remaining unclaimed for two years after the date
upon which such principal, premium or interest shall have become due and
payable shall, upon the written request of the Company, be repaid to the
Company by the Trustee or such Paying Agent, and the Holder of such Note shall,
unless otherwise required by mandatory provisions of applicable escheat or
abandoned or unclaimed property laws, thereafter look only to the Company for
any payment which such Holder may be entitled to collect, and all liability of
the Trustee or any Paying Agent with respect to such moneys shall thereupon
cease.

Section 9.5                                   Defeasance
and Discharge of Indenture.

The Company will be deemed to have paid and will be
discharged from any and all obligations in respect of the Notes on the 123rd
day after the deposit referred to in subparagraph (A) below has been made, and
the provisions of this Indenture and any Series Supplemental Indenture will no
longer be in effect with respect to the Notes (and the Trustee, at the expense
of the Company, shall execute proper instruments acknowledging the same),
except as to (a) rights of registration of transfer and exchange, and the
Company’s right of optional redemption, (b) substitution of apparently
mutilated, defaced, destroyed, lost or stolen securities, (c) rights of Holders
to receive payments of principal thereof and premium, if any, and interest
thereon, (d) the rights, obligations and immunities of the Trustee hereunder,
(e) the rights of the Noteholders as beneficiaries hereof with respect to the
property so deposited with the Trustee payable to all or any of them, (f) the
obligations of the Company to maintain a place of payment for the Notes under Section
3.1 hereof and (g) the maintenance by the Company of its existence; provided
that the following conditions shall have been satisfied:

(A)                              with
reference to this Section 9.5, the Company has irrevocably deposited or
caused to be irrevocably deposited with the Trustee (or another trustee
satisfying the requirements of Section 5.8 hereof) as trust funds in
trust, specifically pledged as security for, and dedicated solely to, the
benefit of the Holders of the Notes, (i) money in an amount, (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) or (y) of this subparagraph (A) 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, (x)
the principal of, premium, if any, and each installment of principal and
interest on the Outstanding Notes at the maturity date of such principal or
installment of principal or interest and (y) any mandatory sinking fund
payments or analogous payments applicable to the Notes on the day on which such
payments are due and payable in accordance with the terms of this Indenture and
the Notes;

 55
 

(B)                                the
Company has delivered to the Trustee (i) an Opinion of Counsel, reasonably
acceptable to the Trustee, 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 9.5 and will be subject to
federal income tax on the same amount and in the same manner and at the same
times as would have been the case if such deposit, defeasance and discharge had
not occurred, which Opinion of Counsel must be based on (x) a change in
applicable federal income tax law or related Treasury Regulations after the
date of this Indenture or (y) a ruling of the Internal Revenue Service to the
same effect 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, no Default or 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 to which the Company is a party or by which the Company is
bound; and

(D)                               if
at such time the Notes are listed on a national securities exchange, the
Company has delivered to the Trustee an Opinion of Counsel to the effect that
the Notes will not be delisted as a result of such deposit, defeasance and
discharge.

Section 9.6                                   Defeasance
of Certain Obligations.

The Company may omit to comply with any term,
provision, or condition set forth in Sections 3.4 and 3.5, and Section
4.1(d) (with respect to Sections 3.4 and 3.5) and Sections
4.1(c) and (e) shall be deemed not to be Events of Default on the
123rd day after the deposit referred to in subparagraph (A) below if:

(A)                              with
reference to this Section 9.6, the Company has irrevocably deposited or
caused to be irrevocably deposited with the Trustee (or another trustee
satisfying the requirements of Section 5.6 hereof) as trust funds in
trust, specifically pledged as security for, and dedicated solely to, the
benefit of the Holders of the Notes, (i) money in an amount, (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 clauses
(x) or (y) of this Section 9.6, 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 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, (x)
the principal of, premium, if any, and each installment of principal and
interest on the Outstanding Notes at the maturity date of such principal or
installment of principal or interest and (y) any mandatory sinking fund
payments or analogous payments applicable to the Notes on the day on which such
payments are due and payable in accordance with the terms of this Indenture and
the Notes;

 56
 

(B)                                the
Company has delivered to the Trustee (i) an Opinion of Counsel, reasonably
acceptable to the Trustee, 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 9.6 and will be subject to
federal income tax on the same amount and in the same manner and 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, 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)                               if
at such time the Notes are listed on a national securities exchange, the
Company has delivered to the Trustee an Opinion of Counsel to the effect that
the Notes will not be delisted as a result of such deposit, defeasance and
discharge.

ARTICLE 10.

REDEMPTION OF NOTES

Section 10.1                            Notes
Redeemed in Part.

Upon surrender of a Note that is redeemed in part, the
Company shall issue and the Trustee shall authenticate for the Holder at the
expense of the Company a new Note equal in principal amount to the unredeemed
portion of the Note surrendered.

Section 10.2                            Notice
of Redemption.

Notice of redemption to the Holders of Notes to be
redeemed in accordance with any Series Supplemental Indenture shall be given by
the Company by mailing notice of such redemption by first class mail, postage
prepaid, at least 30 days and not more than 60 days prior to the date fixed for
redemption to such Holders of Notes at their last addresses as they shall
appear in the Notes Register.  Failure to
give notice by mail, or any defect in the notice to the Holder of any Note
designated for redemption as a whole or in part shall not affect the validity
of the proceedings for the redemption of any other Note.

 57
 

The notice of redemption to each Holder shall specify
that the Notes are being redeemed pursuant to this Article 10 and the
applicable Series Supplemental Indenture, the date fixed for redemption, the
place or places of payment, the CUSIP and ISIN numbers (as applicable) of the
Notes being redeemed, that payment will be made upon presentation and surrender
of the Notes, that interest accrued to the date fixed for redemption will be
paid as specified in this Article and that, on and after said date, interest
thereon or on the portions thereof redeemed will cease to accrue.

Any notice of redemption of Notes to be redeemed at
the option of the Company shall be given by the Company or, at the Company’s
request, by the Trustee in the name and at the expense of the Company.

At least one Business Day prior to the redemption date
specified in the notice of redemption given as provided in this Section 10.2,
the Company shall deposit with the Trustee or with one or more paying agents
(or, if the Company is acting as its own paying agent, set aside, segregate and
hold in trust as provided in Section 2.5 hereof) an amount of money
sufficient to redeem on the redemption date all the Notes so called for
redemption.

Section 10.3                            Payment
of Notes Called for Redemption.

If notice of redemption has been given as above
provided, the Notes shall become due and payable on the date and at the place
stated in such notice at the redemption price, and on and after said date
(unless the Company shall default in the payment of such Notes at the redemption
price) interest on the Notes or portions of Notes so called for redemption
shall cease to accrue and, except as provided in Section 5.5 and Section
9.4 hereof, such Notes shall cease from and after the date fixed for
redemption to be entitled to any benefit or security under this Indenture, and
the Holders thereof shall have no right in respect of such Notes except the
right to receive the redemption price thereof. 
On presentation and surrender of such Notes at a place of payment
specified in said notice, said Notes shall be paid and redeemed by the Company
at the redemption price, provided that any semiannual payment of
interest becoming due on the date fixed for redemption shall be payable to the
Holders of such Notes registered as such on the relevant record date subject to
the terms and provisions of Section 2.7(i) hereof.

If the Company defaults in the payment of the
redemption price with respect to any Note called for redemption, upon surrender
thereof for redemption, the principal shall, until paid or duly provided for,
bear interest from the date fixed for redemption at the rate borne by the Note.

 58
 

ARTICLE 11.

MISCELLANEOUS PROVISIONS

Section 11.1                            Incorporators,
Shareholders, Officers and Directors of Company Exempt from Individual
Liability.

No recourse under or upon any obligation, covenant or
agreement contained in this Indenture, or in any Note, or because of any
indebtedness evidenced thereby, shall be had against any incorporator, as such,
or against any past, present or future shareholder, officer or director, as
such, of the Company or of any successor, either directly or through the
Company or any successor, under any rule of law, statute or constitutional
provision or by the enforcement of any assessment or by any legal or equitable
proceeding or otherwise, all such liability being expressly waived and released
by the acceptance of the Notes by the Holders thereof and as part of the
consideration for the issue of the Notes.

Section 11.2                            Provisions
of the Indenture for the Sole Benefit of Parties and Noteholders.

Nothing in this Indenture or in the Notes, expressed
or implied, shall give or be construed to give to any Person, other than the
parties hereto and their successors and the Holders (and, where expressly set
forth herein, owners of interests in any Global Note), any legal or equitable
right, remedy or claim under this Indenture or under any covenant or provision
herein contained, all such covenants and provisions being for the sole benefit
of the parties hereto and their successors and the Holders (and, where
expressly set forth herein, owners of interests in any Global Note).

Section 11.3                            Successors
and Assigns of Company Bound by Indenture.

All the covenants, stipulations, promises and
agreements in this Indenture contained by or on behalf of the Company shall
bind its successors and assigns, whether so expressed or not.

Section 11.4                            Notices
and Demands on Company, Trustee and Noteholders.

Any notice or demand which by any provision of this
Indenture is required or permitted to be given or served by the Trustee or by
the Holders to or on the Company may be given or served by being deposited
postage prepaid, first-class mail (except as otherwise specifically provided
herein) addressed (until another address of the Company is filed by the Company
with the Trustee) to Edison Mission Energy, 18101 Von Karman Avenue, Suite
1700, Irvine, California 92612, Attention: Chief Financial Officer.  Any notice, direction, request or demand by
the Company or any Noteholder to or upon the Trustee shall be deemed to have
been sufficiently given or made, for all purposes, if given or made at the
Corporate Trust Office.

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

 59
 

In case, by reason of the suspension of or
irregularities in regular mail service, it shall be impracticable to mail
notice to the Company and Noteholders when such notice is required to be given
pursuant to any provision of this Indenture, then any manner of giving such
notice as shall be satisfactory to the Trustee shall be deemed to be a
sufficient giving of such notice.

Section 11.5                            Statements
to Be Contained in Officers’ Certificates and Opinions of Counsel.

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

Each certificate or opinion provided for in this
Indenture and delivered to the Trustee with respect to compliance with a
condition or covenant provided for in this Indenture shall include (a) a
statement that the Person making such certificate or opinion has read such
covenant or condition, (b) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based, (c) a statement that, in the opinion of
such Person, he has made such examination or investigation as is necessary to
enable him to express an informed opinion as to whether or not such covenant or
condition has been complied with and (d) a statement as to whether or not, in
the opinion of such Person, such condition or covenant has been complied with.

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

Any certificate, statement or opinion of an officer of
the Company or of counsel may be based, insofar as it relates to accounting
matters, upon a certificate or opinion of or representations by an accountant
or firm of accountants in the employ of the Company, unless such officer or
counsel, as the case may be, knows that the certificate or opinion or
representations with respect to the accounting matters upon which his
certificate, statement or opinion may be based as aforesaid are erroneous, or
in the exercise of reasonable care should know that the same are erroneous.

 60
 

Any certificate or opinion of any independent firm of
public accountants filed with the Trustee shall contain a statement that such
firm is independent.

Section 11.6                            Payments
Due on Saturdays, Sundays and Holidays.

If the date of maturity of interest on or principal,
or premium, if any, of the Notes or the date fixed for redemption of any Note
shall not be a Business Day, then payment of interest, principal, or premium
need not be made on such date, but may be made on the next succeeding Business
Day with the same force and effect as if made on the date of maturity or the
date fixed for redemption, and no interest shall accrue for the period after
such date.

Section 11.7                            New
York Law to Govern.

THIS INDENTURE SHALL BE GOVERNED BY THE LAW OF THE
STATE OF NEW YORK, WITHOUT REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF
(OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

Section 11.8                            Counterparts.

This Indenture may be executed in any number of
counterparts, each of which shall be an original, but such counterparts shall
together constitute but one and the same agreement.

Section 11.9                            Effect
of Headings.

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

Section 11.10                     Trust
Indenture Act.

When this Indenture is qualified under the TIA, the
mandatory provisions thereof shall be deemed to be incorporated by reference
herein.

 61

IN WITNESS WHEREOF, the parties hereto have caused
this Indenture to be duly executed by their respective officers thereunto duly
authorized as of the date first written above.

	
  

  	
  EDISON MISSION ENERGY, as Company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven D.
  Eisenberg

  	
   

  
	
   

  	
   

  	
  Name: Steven D. Eisenberg

  
	
   

  	
   

  	
  Title:   Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO
  BANK, NATIONAL

  ASSOCIATION, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maddy Hall

  	
   

  
	
   

  	
   

  	
  Name: Maddy Hall

  
	
   

  	
   

  	
  Title:    Assistant Vice
  President

  

 

EME - Indenture

EXHIBIT
A

[Face of Note]

CUSIP/CINS                      

ISIN
                     

  % Senior
Notes due                    

	
  No.                   

  	
  $                     

  

 

EDISON MISSION
ENERGY

promises to pay to                                                                                                                                                                          

or registered assigns,

the principal sum of                                                                                                                                         DOLLARS

on                                           ,
             .

Interest Payment Dates:                   and
                   

Record Dates:                    and
                

Dated:                                                ,
              

	
  

  	
  EDISON MISSION ENERGY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  This is one of the Notes referred to in the

  within-mentioned Indenture:

  	
   

  
	
   

  	
   

  
	
  WELLS FARGO BANK, NATIONAL

  ASSOCIATION, as Trustee

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  	
   

  
						

 

 A-1
 

[Back of Note]

             %
Senior Notes due                       

[Insert the Global Note Legend, if
applicable pursuant to the provisions of the Indenture]

[Insert the Private Placement
Legend, if applicable pursuant to the provisions of the Indenture]

[Insert the IAI Note Legend, if
applicable pursuant to the provisions of the Indenture]

[Insert the ERISA Legend, if
applicable pursuant to the provisions of the Indenture]

Capitalized terms used herein shall have the meanings
assigned to them in the Indenture referred to below unless otherwise indicated.

INTEREST. 
Edison Mission Energy, a Delaware corporation (the “Company”), promises
to pay interest on the principal amount of this Note at            %
per annum              ,
           until maturity and
to pay the Liquidated Damages, if applicable, payable pursuant to Section         
of the Registration Rights Agreement referred to below.  The Company will pay interest and Liquidated
Damages, if applicable, semi-annually in arrears on              
and             of each
year, (each an “Interest Payment Date”); provided that if any such day is not a Business Day, then
such payment will be made on the next succeeding Business Day.  Interest on this Note will accrue from the
most recent date to which interest has been paid or, if no interest has been
paid, from              ;
provided that if there is no
existing Default in the payment of interest, and if this Note is authenticated
between a record date referred to on the face hereof and the next succeeding
Interest Payment Date, interest shall accrue from such next succeeding Interest
Payment Date; provided, further, that the first Interest Payment
Date in respect of this Note shall be              .  The Company shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal at the rate that is equal to the rate set forth on the face of this
Note, and it shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest and
Liquidated Damages, if any, (without regard to any applicable grace periods)
from time to time at the same rate to the extent lawful.  Interest will be computed on the basis of a
360-day year consisting of twelve 30-day months.

METHOD OF PAYMENT.  The Company will pay interest on this Note
(except defaulted interest) and Liquidated Damages, if applicable, to the
Person who is the registered Holder of this Note at the close of business on
the           or              
next preceding the Interest Payment Date, even if this Note is canceled after
such record date and on or before such Interest Payment Date, except as
provided in Section 2.12 of the Indenture with respect to defaulted
interest.  This Note will be payable as
to principal, premium and Liquidated Damages, if applicable, and interest by
mailing a check for such to or upon the written order of the registered Holder
of this Note entitled thereto at its last address as it appears on the Notes
Register or, upon written application to the Trustee (which shall be received
by the Trustee prior to the record date) by a Holder of $1,000,000 or more in
aggregate principal amount of Notes, by wire transfer of immediately available
funds to an account maintained by such Holder with a bank or other financial
institution; provided, however, that (subject to the provisions
of Section 2.8 of the Indenture) payment of principal of, and premium,
if any, on any Note may be conditioned upon presentation for payment of the
certificate representing such Note.  Such
payment shall be in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts.

 A-2
 

PAYING AGENT AND REGISTRAR.  Initially, Wells Fargo Bank, National
Association, the Trustee under the Indenture, will act as Paying Agent and
Registrar.  The Company may change any
Paying Agent or Registrar without notice to any Holder.  The Company or any of its Subsidiaries may
act in any such capacity.

INDENTURE. 
The Company issued this Note under an Indenture, dated as of [      ], 2007 (the “Original Indenture”),
between the Company and the Trustee, as supplemented by the [ ] Supplemental
Indenture, dated as of                      
,                      
(the “[ ] Supplemental Indenture”), between the Company and the Trustee (the
Original Indenture, as so supplemented, and as the same may be amended, modified
and further supplemented, the “Indenture”). 
The terms of this Note include those stated in the Indenture and those
made part of the Indenture by reference to the Trust Indenture Act of 1939, as
amended (15 U.S. Code §§ 77aaa-77bbbb). 
This Note is subject to all such terms, and Holders are referred to the
Indenture and such Act for a statement of such terms.  To the extent any provision of this Note
conflicts with the express provisions of the Indenture, the provisions of the
Indenture shall govern and be controlling. 
The Notes are unsecured obligations of the Company[, and the series of
Notes of which this Note is a part is limited to $           
million in aggregate principal amount.] [the aggregate principal amount of the
series of Notes of which this Note is a part is unlimited.]

REDEMPTION.

[Insert relevant
provisions if the series of Notes is redeemable pursuant to the applicable
Series Supplemental Indenture]

NOTICE OF REDEMPTION.  Notice of redemption will be mailed at least
30 days but not more than 60 days before the redemption date to each Holder
whose Notes are to be redeemed at its last registered address.  Subject to payment by the Company of a sum
sufficient to pay the amount due on redemption, interest on the Notes ceases to
accrue upon the date duly fixed for redemption of the Notes.

DENOMINATIONS, TRANSFER, EXCHANGE.  The Notes of this series are issuable only in
registered form without coupons in denominations of $2,000 and integral
multiples of $1,000 in excess thereof. 
The transfer of Notes may be registered and Notes may be exchanged as
provided in the Indenture.  The Registrar
and the Trustee may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and the Company may require a
Holder to pay taxes and fees required by law or permitted by the
Indenture.  The Company need not exchange
or register the transfer of any Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed in
part.  Also, the Company need not
exchange or register the transfer of any Notes for a period of 15 days before a
selection of Notes to be redeemed or during the period between a record date
and the corresponding Interest Payment Date.

PERSONS DEEMED OWNERS.  The registered Holder of a Note may be
treated as its owner for all purposes.

 A-3
 

AMENDMENT, SUPPLEMENT.  With the consent of the Holders of not less
than a majority in aggregate principal amount of the Notes at the time
Outstanding, evidenced as in the Indenture provided, the Indenture or any
supplemental indentures or the rights of the Holders of the Notes may be
modified; provided that no such
modification shall (a) change the Stated Maturity of the principal of, or any
installment of principal of or interest on, any Note, or reduce the principal
amount thereof, or reduce the rate or extend the time of payment of interest
thereon, or reduce any amount payable on the redemption thereof or impair or
affect the rights of any Noteholder to institute suit for the enforcement of
any payment on or with respect to any Note or change the place or currency of
payment of principal of, or interest on, any Note, in each case without the
consent of the Holder of each Note so affected, or (b) without the consent of
the Holders of all Notes then outstanding, (i) reduce the aforesaid percentage
of Notes the consent of the Holders of which is required for any such
modification, or the percentage of Notes the consent of Holders of which is
required for any waiver provided for in the Indenture, (ii) change any
obligation of the Company to maintain an office or agency for payment of and
transfer and exchange of the Notes or (iii) make certain changes to provisions
relating to the waiver of past defaults or to the provisions for supplementing
the Indenture with the consent of the Holders.

DEFAULTS AND REMEDIES.  Events of Default include: (i) default for 30
days in the payment when due of interest on the Notes; (ii) default in payment
when due of principal of or premium, if any, on the Notes when the same becomes
due and payable at maturity, upon redemption or otherwise, (iii) failure by the
Company for 90 days after notice to the Company by the Trustee or the Holders
of at least 25% in principal amount of the Notes then outstanding voting as a
single class to comply with certain other agreements in the Indenture or the
Notes; (iv) default under certain other agreements relating to Indebtedness of
the Company which default results in the acceleration of such Indebtedness
prior to its express maturity; (v) certain final judgments for the payment of
money that remain undischarged for a period of 90 days; and (vi) certain events
of bankruptcy or insolvency with respect to the Company.  If any Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Notes may declare the principal of all the Notes and the
interest accrued thereon to be due and payable immediately.  Notwithstanding the foregoing, in the case of
an Event of Default arising from certain events of bankruptcy or insolvency,
all outstanding Notes will become due and payable without further action or
notice.  Holders may not enforce the
Indenture or the Notes except as provided in the Indenture.  Holders of a majority in aggregate principal
amount of the Notes then outstanding by notice to the Trustee may on behalf of
the Holders of all of the Notes waive any past Default or Event of Default
except a Default (a)  in the payment of
principal of, premium, if any, or interest on, any of the Notes or (b) in
respect of a covenant or provision in the Indenture that cannot be modified or
amended without the consent of the Holders of each Note affected.  The Company is required to deliver to the
Trustee annually a statement regarding compliance with the Indenture, and the
Company is required upon becoming aware of any Default or Event of Default, to
deliver to the Trustee a statement specifying such Default or Event of Default.

TRUSTEE DEALINGS WITH COMPANY.  The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for the
Company or its Affiliates, and may otherwise deal with the Company or its
Affiliates, as if it were not the Trustee.

 A-4
 

NO RECOURSE AGAINST OTHERS.  A director, officer, employee, incorporator
or stockholder of the Company, as such, shall not have any liability for any
obligations of the Company under the Notes, the Indenture or any indenture
supplemental thereto or for any claim based on, in respect of, or by reason of,
such obligations or their creation.  Each
Holder by accepting a Note waives and releases all such liability.  The waiver and release are part of the
consideration for the issuance of the Notes.

AUTHENTICATION.  This Note shall not be valid until
authenticated by the manual signature of the Trustee or an authenticating
agent.

ABBREVIATIONS.  Customary abbreviations may be used in the
name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN
ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act).

[1.            ADDITIONAL RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES AND
RESTRICTED DEFINITIVE NOTES. 
In addition to the rights provided to Holders of Notes under the
Indenture, Holders of Restricted Global Notes and Restricted Definitive Notes
shall have all the rights set forth in the Registration Rights Agreement dated
as of                   ,
           , between the
Company and the parties named on the signature pages thereof, or, in the case
of Additional Notes, Holders of Restricted Global Notes and Restricted
Definitive Notes will have the rights set forth in one or more registration
rights agreement, if any, between the Company and the parties named on the
signature pages thereto (collectively, the “Registration Rights Agreement”).]

CUSIP NUMBERS.  Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Company has
caused CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP
numbers in notices of redemption as a convenience to Holders.  No representation is made as to the accuracy
of such numbers either as printed on the Notes or as contained in any notice of
redemption and reliance may be placed only on the other identification numbers
placed thereon.

THIS NOTE AND THIS
INDENTURE SHALL BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK, WITHOUT
REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF (OTHER THAN SECTION 5-1401
OF THE NEW YORK GENERAL OBLIGATIONS LAW).

The Company will furnish to any Holder upon written
request and without charge a copy of the Indenture and/or the Registration
Rights Agreement.  Requests may be made
to:

Edison Mission Energy

18101 Von Karman
Avenue

Suite 1700

Irvine, California
92612

Attention: Chief Financial Officer

 A-5
 

ASSIGNMENT FORM

To assign this Note, fill in the form below:

	
  (I) or (we) assign and
  transfer this Note to:

  	
   

  
	
   

  	
  (Insert assignee’s legal name)

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Insert assignee’s soc. sec. or tax I.D. no.)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Print or type assignee’s name, address and zip
  code)

  

 

and irrevocably appoint                                                                                                                                                      
to transfer this Note on the books of the Company.  The agent may substitute another to act for
him.

	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Your Signature:

  	
   

  
	
   

  	
  (Sign exactly as your
  name appears on the face of this Note)

  
	
   

  	
   

  
	
  Signature Guarantee*:

  	
   

  	
   

  
						

 

* Participant in a recognized Signature Guarantee
Medallion Program (or other signature guarantor acceptable to the Trustee).

 A-6
 

SCHEDULE OF EXCHANGES OF INTERESTS
IN THE GLOBAL NOTE*

The following exchanges of a part of this Global Note
for an interest in another Global Note or for a Definitive Note, or exchanges
of a part of another Global Note or Definitive Note for an interest in this
Global Note, have been made:

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Principal Amount

  	
   

  	
  Signature of

  	
   

  
	
   

  	
   

  	
  Amount of decrease in

  	
   

  	
  Amount of increase in

  	
   

  	
  of this Global Note

  	
   

  	
  authorized officer of

  	
   

  
	
   

  	
   

  	
  Principal Amount

  	
   

  	
  Principal Amount

  	
   

  	
  following such decrease

  	
   

  	
  Trustee or

  	
   

  
	
  Date of Exchange

  	
   

  	
  of this Global Note

  	
   

  	
  of this Global Note

  	
   

  	
  (or increase)

  	
   

  	
  Custodian

  	
   

  
	
                                                  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
                                                  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
                                                  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

*  This schedule should be included only if the Note is
issued in global form.

 A-7

EXHIBIT B

FORM OF CERTIFICATE OF TRANSFER

Edison Mission
Energy

18101 Von Karman
Avenue

Suite 1700

Irvine, California 92612

[Wells Fargo Bank,
National Association

707 Wilshire Blvd,
17th Floor

Los Angeles,
California  90017

Attention: Corporate Trust Administration]

Re:  [  
]% Senior Notes due [                ]

Reference is hereby made to the Indenture, dated as of
[      ], 2007 and the [    ] Series Supplemental Indenture, dated as
of        ,            )
(together, the “Indenture”) each
between Edison Mission Energy, as issuer (the “Company”),
and Wells Fargo Bank, National Association, as trustee.  Capitalized terms used but not defined herein
shall have the meanings given to them in the Indenture.

                              ,
(the “Transferor”) owns and
proposes to transfer the Note[s] or interest in such Note[s] specified in Annex
A hereto, in the principal amount of $                        
in such Note[s] or interests (the “Transfer”),
to                        
(the “Transferee “), as further
specified in Annex A hereto.  In
connection with the Transfer, the Transferor hereby certifies that:

[CHECK ALL THAT APPLY]

o  Check if Transferee will take delivery of a beneficial
interest in the 144A Global Note or a Restricted Definitive Note Pursuant to
Rule 144A.  The Transfer
is being effected pursuant to and in accordance with Rule 144A under the United
States Securities Act of 1933, as amended (the “Securities Act”), and,
accordingly, the Transferor hereby further certifies that the beneficial interest
or Definitive Note is being transferred to a Person that the Transferor
reasonably believed and believes is purchasing the beneficial interest or
Definitive Note for its own account, or for one or more accounts with respect
to which such Person exercises sole investment discretion, and such Person and
each such account is a “qualified institutional buyer” within the meaning of
Rule 144A in a transaction meeting the requirements of Rule 144A; and such
Transfer is in compliance with any applicable blue sky securities laws of any
state of the United States.  Upon
consummation of the proposed Transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will be
subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the 144A Global Note and/or the Definitive Note and in the
Indenture and the Securities Act.

 B-1
 

o  Check if Transferee will take delivery of a beneficial
interest in the Regulation S Global Note or a Definitive Note pursuant to
Regulation S.  The
Transfer is being effected pursuant to and in accordance with Rule 903 or Rule
904 under the Securities Act and, accordingly, the Transferor hereby further
certifies that (i) the Transfer is not being made to a person in the United
States and (x) at the time the buy order was originated, the Transferee was
outside the United States or such Transferor and any Person acting on its
behalf reasonably believed and believes that the Transferee was outside the
United States or (y) the transaction was executed in, on or through the
facilities of a designated offshore securities market and neither such
Transferor nor any Person acting on its behalf knows that the transaction was
prearranged with a buyer in the United States, (ii) no directed selling efforts
have been made in contravention of the requirements of Rule 903(b) or Rule
904(b) of Regulation S under the Securities Act, (iii) the transaction is not
part of a plan or scheme to evade the registration requirements of the Securities
Act and (iv) if the proposed transfer is being made prior to the expiration of
the Restricted Period, the transfer is not being made to a U.S. Person or for
the account or benefit of a U.S. Person (other than an Initial Purchaser).  Upon consummation of the proposed transfer in
accordance with the terms of the Indenture, the transferred beneficial interest
or Definitive Note will be subject to the restrictions on Transfer enumerated
in the Private Placement Legend printed on the Regulation S Global Note and/or
the Restricted Definitive Note and in the Indenture and the Securities Act.

o  Check and complete if Transferee will take delivery of
a beneficial interest in the IAI Global Note or a Restricted Definitive Note
pursuant to any provision of the Securities Act other than Rule 144A or
Regulation S.  The
Transfer is being effected in compliance with the transfer restrictions
applicable to beneficial interests in Restricted Global Notes and Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act and
any applicable blue sky securities laws of any state of the United States, and
accordingly the Transferor hereby further certifies that (check one):

o            such Transfer is being effected
pursuant to and in accordance with Rule 144 under the Securities Act;

or

o            such Transfer is being effected to
the Company or a subsidiary thereof; or

o            such Transfer is being effected
pursuant to an effective registration statement under the Securities Act and in
compliance with the prospectus delivery requirements of the Securities Act; or

o            such Transfer is being effected to
an Institutional Accredited Investor and pursuant to an exemption from the
registration requirements of the Securities Act other than Rule 144A, Rule 144,
Rule 903 or Rule 904, and the Transferor hereby further certifies that it has
not engaged in any general solicitation within the meaning of Regulation D
under the Securities Act and the Transfer complies with the transfer
restrictions applicable to beneficial interests in a Restricted Global Note or
Restricted Definitive Notes and the requirements of the exemption claimed,
which certification is supported by (1) a certificate executed by the
Transferee in the form of Exhibit B-1 to the

 B-2
 

Indenture
and (2) if such Transfer is in respect of a principal amount of Notes at the
time of Transfer of less than $250,000, an Opinion of Counsel provided by the
Transferor or the Transferee (a copy of which the Transferor has attached to
this certification), to the effect that such Transfer is in compliance with the
Securities Act.  Upon consummation of the
proposed transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on
the IAI Global Note and/or the Restricted Definitive Notes and in the Indenture
and the Securities Act.

o  Check if Transferee will take delivery of a beneficial
interest in an Unrestricted Global Note or of an Unrestricted Definitive Note.

o  Check if
Transfer is pursuant to Rule 144. 
(i) The Transfer is being effected pursuant to and in accordance with
Rule 144 under the Securities Act and in compliance with the transfer
restrictions contained in the Indenture and any applicable blue sky securities
laws of any state of the United States and (ii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in
order to maintain compliance with the Securities Act.  Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred beneficial interest
or Definitive Note will no longer be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global
Notes, on Restricted Definitive Notes and in the Indenture.

o  Check if
Transfer is Pursuant to Regulation S.  (i) The Transfer is being effected pursuant
to and in accordance with Rule 903 or Rule 904 under the Securities Act and in
compliance with the transfer restrictions contained in the Indenture and any
applicable blue sky securities laws of any state of the United States and (ii)
the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act.  Upon consummation of the
proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will no longer be subject to
the restrictions on transfer enumerated in the Private Placement Legend printed
on the Restricted Global Notes, on Restricted Definitive Notes and in the
Indenture.

o  Check if
Transfer is Pursuant to Other Exemption.  (i) The Transfer is being effected pursuant
to and in compliance with an exemption from the registration requirements of
the Securities Act, other than Rule 144, Rule 903 or Rule 904 and in compliance
with the transfer restrictions contained in the Indenture and any applicable
blue sky securities laws of any State of the United States and (ii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities
Act.  Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will not be subject to the restrictions
on transfer enumerated in the Private Placement Legend printed on the
Restricted Global Notes or Restricted Definitive Notes and in the Indenture.

 B-3
 

This certificate and the
statements contained herein are made for your benefit.

	
  

  	
   

  
	
   

  	
  [Insert Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
					

 

 B-4
 

ANNEX A TO CERTIFICATE OF TRANSFER

The Transferor owns and
proposes to transfer the following:

[CHECK ONE]

o                                                                                    a
beneficial interest in the:

o            144A Global Note (CUSIP             );
or

o            Regulation S Global Note (CUSIP             );
or

o            IAI Global Note (CUSIP
            ); or

o            a Restricted Definitive Note.

After the Transfer the
Transferee will hold:

[CHECK ONE]

o            a beneficial interest in the:

o            144A Global Note (CUSIP             );
or

o            Regulation S Global Note (CUSIP             );
or

o            IAI Global Note (CUSIP
            ); or

o            Unrestricted Global Note (CUSIP             );
or

o            a Restricted Definitive Note; or

o            an Unrestricted Definitive Note,

in accordance with the
terms of the Indenture.

 B-5

EXHIBIT B-1

FORM OF CERTIFICATE FROM

ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

Edison Mission Energy

18101 Von Karman Avenue

Suite 1700

Irvine, California 92612

Wells Fargo Bank, National Association

707 Wilshire Blvd, 17th Floor

Los Angeles, California  90017

Attention: Corporate
Trust Administration

Re: [ ]% Senior
Notes due [                        ]

(CUSIP                       )

Reference is hereby made to the Indenture, dated as of
[       ], 2007 and the [    ] Series Supplemental Indenture, dated as
of       ,           )
(together, the “Indenture”) each between Edison
Mission Energy, as issuer (the “Company”), and
Wells Fargo Bank, National Association, as trustee.  Capitalized terms used but not defined herein
shall have the meanings given to them in the Indenture.

In connection with our
proposed purchase of $                      
aggregate principal amount of:

(a)  o                                              a beneficial
interest in a Global Note, or

(b)  o                                             a Definitive
Note,

we confirm that:

1.                                       We understand
that any subsequent transfer of the Notes or any interest therein is subject to
certain restrictions and conditions set forth in the Indenture and the
undersigned agrees to be bound by, and not to resell, pledge or otherwise
transfer the Notes or any interest therein except in compliance with, such
restrictions and conditions and the Securities Act of 1933, as amended (the “Securities Act”).

2.                                       We understand
that the offer and sale of the Notes have not been registered under the
Securities Act, and that the Notes and any interest therein may not be offered
or sold except as permitted in the following sentence.  We agree, on our own behalf and on behalf of
any accounts for which we are acting as hereinafter stated, that if we should
sell the Notes or any interest therein, we will do so only (A) to the Company
or any subsidiary thereof, (B) in accordance with Rule 144A under the
Securities Act to a “qualified institutional buyer” (as defined therein), (C)
to an institutional “accredited investor” (as defined below) that, prior to

 B-1-1
 

such transfer, furnishes (or
has furnished on its behalf by a U.S. broker-dealer) to you and to the Company
a signed letter substantially in the form of this letter and, if such transfer
is in respect of a principal amount of Notes at the time of transfer of less
than $250,000, an Opinion of Counsel in form reasonably acceptable to the
Company to the effect that such transfer is in compliance with the Securities
Act, (D) outside the United States in accordance with Rule 904 of Regulation S
under the Securities Act, (E) pursuant to the provisions of Rule 144(k) under
the Securities Act or (F) pursuant to an effective registration statement under
the Securities Act, and we further agree to provide to any Person purchasing
the Definitive Note or beneficial interest in a Global Note from us in a
transaction meeting the requirements of clauses (A) through (E) of this
paragraph a notice advising such purchaser that resales thereof are restricted
as stated herein.

3.                                       We understand
that, on any proposed resale of the Notes or beneficial interest therein, we
will be required to furnish to you and the Company such certifications, legal
opinions and other information as you and the Company may reasonably require to
confirm that the proposed sale complies with the foregoing restrictions.  We further understand that the Notes
purchased by us will bear a legend to the foregoing effect.

4.                                       We are an
institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) of Regulation D under the Securities Act) and have such knowledge and
experience in financial and business matters as to be capable of evaluating the
merits and risks of our investment in 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.

5.                                       We are
acquiring the Notes or beneficial interest therein purchased by us for our own
account or for one or more accounts (each of which is an institutional “accredited
investor”) as to each of which we exercise sole investment discretion.

You
and the Company 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 proceedings or official inquiry with respect to the
matters covered hereby.]

	
  

  	
   

  
	
   

  	
  [Insert Name of Accredited Investor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
					

 

 B-1-2

EXHIBIT C

FORM OF CERTIFICATE OF
EXCHANGE

Edison Mission Energy

18101 Von Karman Avenue

Suite 1700

Irvine, California 92612

Wells Fargo Bank, National Association

707 Wilshire Blvd, 17th Floor

Los Angeles, California  90017

Attention: Corporate
Trust Administration

Re: [ ]% Senior Notes due [                              ]

(CUSIP                       )

Reference is hereby made to the Indenture, dated as of
[         ], 2007 and the [    ] Series Supplemental Indenture, dated as
of       ,          )
(together, the “Indenture”) each between Edison
Mission Energy, as issuer (the “Company”), and
Wells Fargo Bank, National Association, as trustee.  Capitalized terms used but not defined herein
shall have the meanings given to them in the Indenture.

                                         ,
(the “Owner”) owns and proposes to exchange
the Note[s] or interest in such Note[s] specified herein, in the principal
amount of $                 in
such Note[s] or interests (the “Exchange”).  In connection with the Exchange, the Owner
hereby certifies that:

Exchange of Restricted Definitive Notes or
Beneficial Interests in a Restricted Global Note for Unrestricted Definitive
Notes or Beneficial Interests in an Unrestricted Global Note.

(a)           o  Check if Exchange is from
beneficial interest in a Restricted Global Note to beneficial interest in an
Unrestricted Global Note.  In
connection with the Exchange of the Owner’s beneficial interest in a Restricted
Global Note for a beneficial interest in an Unrestricted Global Note in an
equal principal amount, the Owner hereby certifies (i) the beneficial interest
is being acquired for the Owner’s own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions
applicable to the Global Notes and pursuant to and in accordance with the
United States Securities Act of 1933, as amended (the “Securities
Act”), (iii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain compliance
with the Securities Act and (iv) the beneficial interest in an Unrestricted
Global Note is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

 C-1
 

(b)           o  Check if Exchange is from
beneficial interest in a Restricted Global Note to Unrestricted Definitive Note.  In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Note for an Unrestricted Definitive
Note, the Owner hereby certifies (i) the Definitive Note is being acquired for
the Owner’s own account without transfer, (ii) such Exchange has been effected
in compliance with the transfer restrictions applicable to the Restricted
Global Notes and pursuant to and in accordance with the Securities Act, (iii)
the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act and (iv) the Definitive Note is being acquired in compliance
with any applicable blue sky securities laws of any state of the United States.

(c)           o  Check if Exchange is from
Restricted Definitive Note to beneficial interest in an Unrestricted Global
Note.  In connection with the
Owner’s Exchange of a Restricted Definitive Note for a beneficial interest in
an Unrestricted Global Note, the Owner hereby certifies (i) the beneficial
interest is being acquired for the Owner’s own account without transfer, (ii)
such Exchange has been effected in compliance with the transfer restrictions
applicable to Restricted Definitive Notes and pursuant to and in accordance
with the Securities Act, (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the beneficial interest is
being acquired in compliance with any applicable blue sky securities laws of
any state of the United States.

(d)           o  Check if Exchange is from
Restricted Definitive Note to Unrestricted Definitive Note.  In connection with the Owner’s Exchange of a
Restricted Definitive Note for an Unrestricted Definitive Note, the Owner
hereby certifies (i) the Unrestricted Definitive Note is being acquired for the
Owner’s own account without transfer, (ii) such Exchange has been effected in
compliance with the transfer restrictions applicable to Restricted Definitive
Notes and pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act
and (iv) the Unrestricted Definitive Note is being acquired in compliance with
any applicable blue sky securities laws of any state of the United States.

Exchange of Restricted Definitive Notes or
Beneficial Interests in Restricted Global Notes for Restricted Definitive Notes
or Beneficial Interests in Restricted Global Notes.

(a)           o  Check if Exchange is from
beneficial interest in a Restricted Global Note to Restricted Definitive Note.  In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Note for a Restricted Definitive
Note with an equal principal amount, the Owner hereby certifies that the
Restricted Definitive Note is being acquired for the Owner’s own account
without transfer.  Upon consummation of
the proposed Exchange in accordance with the terms of the Indenture, the
Restricted Definitive Note issued will continue to be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on
the Restricted Definitive Note and in the Indenture and the Securities Act.

(b)           o  Check if Exchange is from
Restricted Definitive Note to beneficial interest in a Restricted Global Note.  In connection with the Exchange of the Owner’s
Restricted Definitive Note for a beneficial interest in the [check one] o
144A Global Note,  o
Regulation S

 C-2
 

Global Note, or o
IAI Global Note, with an equal principal amount, the Owner hereby certifies (i)
the beneficial interest is being acquired for the Owner’s own account without transfer
and (ii) such Exchange has been effected in compliance with the transfer
restrictions applicable to the Restricted Global Notes and pursuant to and in
accordance with the Securities Act, and in compliance with any applicable blue
sky securities laws of any state of the United States.  Upon consummation of the proposed Exchange in
accordance with the terms of the Indenture, the beneficial interest issued will
be subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the Restricted Global Note and in the Indenture and the
Securities Act.

This certificate and the statements contained herein
are made for your benefit and the benefit of the Company.

	
  

  	
   

  
	
   

  	
  [Insert Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
					

 

 C-3

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