Document:

EXHIBIT 4(d)

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                      SOUTHWESTERN ELECTRIC POWER COMPANY,
                                     ISSUER

                                       TO

                              THE BANK OF NEW YORK,
                                     TRUSTEE

                                    ---------

                             SUBORDINATED INDENTURE

                      DATED AS OF _________________________

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<PAGE>

                       SOUTHWESTERN ELECTRIC POWER COMPANY

           Reconciliation and tie between Trust Indenture Act of 1939
                  and Indenture, dated as of _________________

Trust Indenture Act Section                                 Indenture Section
ss.310  (a)(1)........................................      909
        (a)(2)........................................      909
        (a)(3)........................................      915
        (a)(4)........................................      Not Applicable
        (b)...........................................      908
                                                            910
ss.311  (a)...........................................      913
        (b)...........................................      913
        (c)...........................................      Not Applicable
ss.312  (a)...........................................      1001
        (b)...........................................      1001
        (c)...........................................      1001
ss.313  (a)...........................................      1002
        (b)(1)........................................      Not Applicable
        (b)(2)........................................      1002
        (c)...........................................      1002
        (d)...........................................      1002
ss.314  (a)...........................................      1002
        (a)(4)........................................      605
        (b)...........................................      Not Applicable
        (c)(1)........................................      102
        (c)(2)........................................      102
        (c)(3)........................................      Not Applicable
        (d)...........................................      Not Applicable
        (e)...........................................      102
ss.315  (a)...........................................      901(a)
        (b)...........................................      902
        (c)...........................................      901(b)
        (d)...........................................      901(c)
        (d)(1)........................................      901(a)(1), 901(c)(1)
        (d)(2)........................................      901(c)(2)
        (d)(3)........................................      901(c)(3)
        (e)...........................................      814
ss.316  (a)...........................................      812
                                                            813
        (a)(1)(A).....................................      802
                                                            812
        (a)(1)(B).....................................      813
        (a)(2)........................................      Not Applicable
        (b)...........................................      808
ss.317    (a)(1)......................................      803
        (a)(2)........................................      804
        (b)...........................................      603
ss.318  (a)...........................................      107

                                       -i-
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              SUBORDINATED INDENTURE, dated as of _______________________  among
SOUTHWESTERN  ELECTRIC POWER COMPANY,  a corporation duly organized and existing
under the laws of the State of Delaware  (herein called the  "Company"),  having
its principal office at 1 Riverside Plaza, Columbus, Ohio 43215, and The Bank of
New York, a New York banking  corporation,  having its principal corporate trust
office at 101  Barclay  Street,  New York,  New York 10286,  as Trustee  (herein
called the "Trustee").

                             RECITAL OF THE COMPANY

              The Company has duly authorized the execution and delivery of this
Indenture  to  provide  for the  issuance  from  time  to time of its  unsecured
subordinated debentures, notes or other evidences of indebtedness (herein called
the  "Securities"),  to be issued in one or more series as contemplated  herein,
and all acts necessary to make this Indenture a valid  agreement of the Company,
in accordance with its terms, have been performed.

                   NOW, THEREFORE, THIS INDENTURE WITNESSETH:

              For and in  consideration  of the premises and the purchase of the
Securities by the Holders thereof, it is mutually covenanted and agreed, for the
equal and  proportionate  benefit of all Holders of the  Securities or of series
thereof (except as otherwise contemplated herein), as follows:

<PAGE>

                                   ARTICLE ONE

             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

SECTION 101.         DEFINITIONS.

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

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

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

                     (c)    all  accounting  terms not otherwise  defined herein
              have the meanings  assigned to them in accordance  with  generally
              accepted  accounting  principles  in the United States of America,
              and,  except as  otherwise  herein  expressly  provided,  the term
              "generally  accepted  accounting  principles"  with respect to any
              computation  required  or  permitted  hereunder  shall  mean  such
              accounting  principles  as are  generally  accepted  in the United
              States of America at the date of such computation;

                     (d)    any reference to an "Article" or a "Section"  refers
              to an Article or a Section, as the case may be, of this Indenture;
              and

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

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

              "ACT", when used with respect to any Holder of a Security, has the
meaning specified in Section 104.

              ["ADDITIONAL INTEREST" has the meaning specified in Section 313.]

              "AFFILIATE"  of  any  specified  Person  means  any  other  Person
directly or indirectly  controlling or controlled by or under direct or indirect
common control with such specified Person.  For the purposes of this definition,
"CONTROL"  when used with  respect to any  specified  Person  means the power to
direct  generally  the  management  and  policies  of such  Person,  directly or
indirectly,  whether through the ownership of voting securities,  by contract or
otherwise;   and  the  terms   "CONTROLLING"   and  "CONTROLLED"  have  meanings
correlative to the foregoing.

              "AUTHENTICATING  AGENT" means any Person or Persons  authorized by
the Trustee to act on behalf of the Trustee to  authenticate  the  Securities of
one or more series.

              "AUTHORIZED   OFFICER"  means  the  Chairman  of  the  Board,  the
President,  any  Vice  President,  the  Treasurer,  or  any  other  Person  duly
authorized by the Company,  as the case  requires,  to act in respect of matters
relating to this Indenture.

              "BOARD OF  DIRECTORS"  means  either the board of directors of the
Company, as the case requires, or any committee of that board duly authorized to
act in respect of matters relating to this Indenture.

              "BOARD  RESOLUTION" means a copy of a resolution  certified by the
Secretary or an Assistant  Secretary of the Company,  as the case  requires,  to
have been duly adopted by the Board of  Directors  of the  Company,  as the case
requires,  and to be in full force and effect on the date of such certification,
and delivered to the Trustee.

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              "BUSINESS  DAY",  when used with  respect to a Place of Payment or
any other  particular  location  specified in the Securities or this  Indenture,
means any day,  other  than a Saturday  or  Sunday,  which is not a day on which
banking  institutions  or trust  companies  in such  Place of  Payment  or other
location are generally  authorized  or required by law,  regulation or executive
order to remain closed,  except as may be otherwise specified as contemplated by
Section 301.

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

              ["COMMON  SECURITIES" means any common trust interests issued by a
Trust or similar  securities  issued by  permitted  successors  to such Trust in
accordance with the Trust Agreement pertaining to such Trust.]

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

              "COMPANY ORDER" or "COMPANY REQUEST" mean, respectively, a written
order or  request,  as the case may be,  signed in the name of the Company by an
Authorized Officer and delivered to the Trustee.

              "CORPORATE  TRUST OFFICE" means the office of the Trustee at which
at any  particular  time its  corporate  trust  business  shall  be  principally
administered, which office at the date of execution of this Indenture is located
at 5 Penn Plaza, 13th Floor, New York, New York 10001.

              "CORPORATION"  means a corporation,  association,  company,  joint
stock company or business trust.

              "DEFAULTED INTEREST" has the meaning specified in Section 307.

              "[DISCOUNT  SECURITY"  means any  Security  which  provides for an
amount  less than the  principal  amount  thereof to be due and  payable  upon a
declaration of acceleration of the Maturity thereof pursuant to Section 802.]

              "DOLLAR"  or "$" means a dollar or other  equivalent  unit in such
coin or currency  of the United  States of America as at the time shall be legal
tender for the payment of public and private debts.

              "[ELIGIBLE OBLIGATIONS" means:

                     (a) with  respect to  Securities  denominated  in  Dollars,
              Government Obligations; or

                     (b) with respect to  Securities  denominated  in a currency
              other  than  Dollars  or  in  a  composite  currency,  such  other
              obligations  or  instruments as shall be specified with respect to
              such Securities, as contemplated by Section 301.]

              "EVENT OF DEFAULT" has the meaning specified in Section 801.

              "EXCHANGE ACT" means the  Securities  Exchange Act of 1934 and the
rules and regulations promulgated thereunder, as amended from time to time.

              "GOVERNMENT OBLIGATIONS" means securities which are (a) (i) direct
obligations  of the United States where the payment or payments  thereunder  are
supported by the full faith and credit of the United States or (ii)  obligations
of  a  Person   controlled   or  supervised  by  and  acting  as  an  agency  or
instrumentality  of the  United  States  where the timely  payment  or  payments
thereunder are unconditionally  guaranteed as a full faith and credit obligation
by the United States or (b) depository  receipts issued by a bank (as defined in
Section  3(a)(2) of the  Securities  Act) as custodian  with respect to any such
Government Obligation or a specific payment of interest on or

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<PAGE>

principal of or other amount with respect to any such 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  Government
Obligation  or the  specific  payment of  interest on or  principal  of or other
amount with respect to the Government  Obligation  evidenced by such  depository
receipt.

              "HOLDER"  means a Person in whose name a Security is registered in
the Security Register.

              "INDENTURE" means this instrument as originally executed and as it
may from  time to time be  supplemented  or  amended  by one or more  indentures
supplemental  hereto entered into pursuant to the applicable  provisions hereof,
including,  for all  purposes  of this  instrument  and  any  such  supplemental
indenture,  the  provisions  of the Trust  Indenture Act that are deemed to be a
part  of  and  govern  this  Indenture  and  any  such  supplemental  indenture,
respectively.  The term  "Indenture"  shall also include the terms of particular
series of Securities established as contemplated by Section 301.

              "[INTEREST",  when used with respect to a Discount  Security which
by its terms bears interest only after  Maturity,  means interest  payable after
Maturity.]

              "INTEREST  PAYMENT DATE",  when used with respect to any Security,
means the Stated Maturity of an installment of interest on such Security.

              "MATURITY", when used with respect to any Security, means the date
on which the principal of such Security or an installment  of principal  becomes
due and payable as provided in such  Security or in this  Indenture,  whether at
the Stated Maturity, by declaration of acceleration, upon call for redemption or
otherwise.

              "NOTICE OF DEFAULT"  means a written  notice of the kind specified
in Section 801(c).

              "OFFICER'S   CERTIFICATE"   means  a  certificate   signed  by  an
Authorized  Officer of the Company or the Guarantor,  as the case requires,  and
delivered to the Trustee.

              "OPINION OF COUNSEL" means a written  opinion of counsel,  who may
be counsel for the Company or the Guarantor,  and who shall be acceptable to the
Trustee.

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

                     (a)    Securities  theretofore canceled or delivered to the
              Trustee for cancellation;

                     (b)    Securities deemed to have been paid for all purposes
              of this  Indenture in accordance  with Section 701 (whether or not
              the Company's  indebtedness  in respect thereof shall be satisfied
              and discharged for any other purpose); and

                     (c)    Securities  which have been paid pursuant to Section
              306 or in exchange for or in lieu of which other  Securities  have
              been authenticated and delivered pursuant to this Indenture, other
              than any such Securities in respect of which there shall have been
              presented to the Trustee proof  satisfactory to it and the Company
              that such  Securities  are held by a bona fide  purchaser in whose
              hands such Securities are valid obligations of the Company;

provided,  however,  that  in  determining  whether  or not the  Holders  of the
requisite  principal amount of the Securities  Outstanding under this Indenture,
or the Outstanding  Securities of any series or Tranche, have given any request,
demand, authorization, direction, notice, consent or waiver hereunder or whether
or not a quorum is present at a meeting of Holders of Securities,

                     (x)    Securities owned by the Company or any other obligor
              upon the  Securities  or any  Affiliate  of the Company or of such
              other obligor (unless the Company, such Affiliate or such

                                       -4-
<PAGE>

              obligor owns all Securities  Outstanding under this Indenture,  or
              all  Outstanding  Securities  of each  such  series  and each such
              Tranche,  as the case may be,  determined  without  regard to this
              clause (x)) shall be disregarded and deemed not to be Outstanding,
              except that, in determining whether the Trustee shall be protected
              in  relying  upon  any  such   request,   demand,   authorization,
              direction,   notice,   consent   or   waiver   or  upon  any  such
              determination  as to the  presence  of a quorum,  only  Securities
              which the Trustee  knows to be so owned  shall be so  disregarded;
              provided,  however,  that  Securities  so owned  which  have  been
              pledged  in good faith may be  regarded  as  Outstanding  if it is
              established to the reasonable satisfaction of the Trustee that the
              pledgee,  and  not the  Company,  or any  such  other  obligor  or
              Affiliate of either thereof,  has the right so to act with respect
              to such  Securities and that the pledgee is not the Company or any
              other obligor upon the  Securities or any Affiliate of the Company
              or of such other obligor;

                     [(y)   the  principal  amount of a Discount  Security  that
              shall be deemed to be  Outstanding  for such purposes shall be the
              amount of the  principal  thereof that would be due and payable as
              of  the  date  of  such   determination   upon  a  declaration  of
              acceleration of the Maturity thereof pursuant to Section 802; and]

                     [(z)   the  principal  amount  of  any  Security  which  is
              denominated  in a currency  other than  Dollars or in a  composite
              currency that shall be deemed to be Outstanding  for such purposes
              shall be the amount of Dollars which could have been  purchased by
              the principal amount (or, in the case of a Discount Security,  the
              Dollar equivalent on the date determined as set forth below of the
              amount  determined  as provided in (y) above) of such  currency or
              composite currency  evidenced by such Security,  in each such case
              certified to the Trustee in an Officer's Certificate, based (i) on
              the  average  of the mean of the  buying  and  selling  spot rates
              quoted by three banks  which are members of the New York  Clearing
              House Association  selected by the Company in effect at 11:00 A.M.
              (New York time) in The City of New York on the fifth  Business Day
              preceding any such determination or (ii) if on such fifth Business
              Day it  shall  not be  possible  or  practicable  to  obtain  such
              quotations  from such three  banks,  on such other  quotations  or
              alternative  methods of determination which shall be as consistent
              as practicable with the method set forth in (i) above;]

provided,  further,  that in the case of any Security the  principal of which is
payable from time to time without presentment or surrender, the principal amount
of such  Security  that  shall be deemed to be  Outstanding  at any time for all
purposes of this Indenture shall be the original  principal  amount thereof less
the aggregate amount of principal thereof theretofore paid.

              "PAYING AGENT" means any Person, including the Company, authorized
by the Company to pay the  principal  of, and premium,  if any, or interest,  if
any, on any Securities on behalf of the Company.

              "PERIODIC  OFFERING"  means an offering of  Securities of a series
from  time  to  time  any or all of the  specific  terms  of  which  Securities,
including without limitation the rate or rates of interest, if any, thereon, the
Stated  Maturity or Maturities  thereof and the redemption  provisions,  if any,
with respect  thereto,  are to be  determined  by the Company or its agents from
time to time  subsequent  to the  initial  request  for the  authentication  and
delivery of such  Securities by the Trustee,  as contemplated in Section 301 and
clause (b) of Section 303.

              "PERSON" means any individual,  corporation,  partnership, limited
liability company,  joint venture,  trust or unincorporated  organization or any
government or any political subdivision, instrumentality or agency thereof.

              "PLACE OF PAYMENT",  when used with respect to the  Securities  of
any  series,  or  Tranche  thereof,  means the  place or  places,  specified  as
contemplated by Section 301, at which,  subject to Section 602, principal of and
premium,  if any,  and  interest,  if any, on the  Securities  of such series or
Tranche are payable.

              "PREDECESSOR  SECURITY"  of any  particular  Security  means every
previous Security evidencing all or a portion of the same debt as that evidenced
by such particular Security; and, for the purposes of this definition,

                                       -5-
<PAGE>

any Security authenticated and delivered under Section 306 in exchange for or in
lieu of a  mutilated,  destroyed,  lost or  stolen  Security  shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security.

              ["PREFERRED SECURITIES" means any preferred trust interests issued
by a Trust or similar securities issued by permitted successors to such Trust in
accordance with the Trust Agreement pertaining to such Trust.]

              "REDEMPTION  DATE",  when used with  respect to any Security to be
redeemed,  means  the date  fixed for such  redemption  by or  pursuant  to this
Indenture.

              "REDEMPTION  PRICE",  when used with respect to any Security to be
redeemed,  means  the  price  at  which it is to be  redeemed  pursuant  to this
Indenture.

              "REGULAR  RECORD  DATE" for the  interest  payable on any Interest
Payment Date on the  Securities of any series means the date  specified for that
purpose as contemplated by Section 301.

              "[REQUIRED CURRENCY" has the meaning specified in Section 311.]

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

              "SECURITIES"  has the meaning  stated in the first recital of this
Indenture and more particularly means any securities authenticated and delivered
under this Indenture.

              "SECURITIES  ACT" means the  Securities Act of 1933, and the rules
and regulations promulgated thereunder, as amended from time to time.

              "SECURITY  REGISTER" and "SECURITY  REGISTRAR" have the respective
meanings specified in Section 305.

              "SENIOR  INDEBTEDNESS",  when used with  respect  to the  Company,
means all obligations (other than non-recourse  obligations and the indebtedness
issued under this  Indenture)  of, or guaranteed or assumed by, the Company,  as
the case may be, for  borrowed  money,  including  both senior and  subordinated
indebtedness for borrowed money (other than the Securities),  or for the payment
of money relating to any lease which is capitalized on the consolidated  balance
sheet of the Company,  as the case may be, and its  subsidiaries  in  accordance
with generally accepted accounting principles as in effect from time to time, or
evidenced by bonds, debentures,  notes or other similar instruments, and in each
case, amendments, renewals, extensions, modifications and refundings of any such
indebtedness or obligations,  whether  existing as of the date of this Indenture
or subsequently incurred by the Company, as the case may be, unless, in the case
of any particular indebtedness,  renewal, extension or refunding, the instrument
creating or  evidencing  the same or the  assumption  or  guarantee  of the same
expressly  provides that such indebtedness,  renewal,  extension or refunding is
not superior in right of payment to or is PARI PASSU with the Securities.

              "SPECIAL RECORD DATE" for the payment of any Defaulted Interest on
the  Securities  of any series  means a date fixed by the  Trustee  pursuant  to
Section 307.

              "STATED INTEREST RATE" means a rate (whether fixed or variable) at
which an  obligation  by its  terms  is  stated  to bear  simple  interest.  Any
calculation or other  determination to be made under this Indenture by reference
to the Stated  Interest Rate on a Security  shall be made without  regard to the
effective  interest cost to the Company of such  Security and without  regard to
the Stated Interest Rate on, or the effective cost to the Company of,

                                       -6-
<PAGE>

any  other  indebtedness  the  Company's  obligations  in  respect  of which are
evidenced or secured in whole or in part by such Security.

              "STATED  MATURITY",  when used with respect to any Security or any
obligation or any installment of principal  thereof or interest  thereon,  means
the date on which  the  principal  of such  obligation  or such  installment  of
principal  or interest is stated to be due and  payable  (without  regard to any
provisions for redemption, prepayment, acceleration, purchase or extension).

              "TRANCHE"  means a group of  Securities  which (a) are of the same
series and (b) have identical terms except as to principal amount and/or date of
issuance.

              ["TRUST" means SWEPCO Capital Trust I, a statutory  business trust
formed  under the laws of the State of Delaware,  or any other trust  designated
pursuant  to  Section  301  hereof or any  permitted  successor  under the Trust
Agreement pertaining to such Trust.]

              ["TRUST AGREEMENT" means the Amended and Restated Trust Agreement,
dated as of ______,  ____, relating to SWEPCO Capital Trust I, or an Amended and
Restated Trust Agreement relating to a Trust designated  pursuant to Section 301
hereof, in each case, among  Southwestern  Electric Power Company,  as Depositor
and Trust  Securities  Guarantor,  the  trustees  named  therein and the several
holders  referred to therein,  as such agreement or agreements,  as the case may
be, may be amended from time to time.]

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

              "TRUST  INDENTURE ACT" means,  as of any time, the Trust Indenture
Act of 1939 as in force at such time.

              ["TRUST SECURITIES GUARANTEE" means the Trust Securities Guarantee
Agreement between the Guarantor, as Trust Securities Guarantor,  and a guarantee
trustee  for the  benefit of the  holders of  Preferred  Securities  [and Common
Securities] issued by such Trust.]

              "UNITED   STATES"  means  the  United   States  of  America,   its
territories, its possessions and other areas subject to its jurisdiction.

              [Additional Definitions to be included if Securities are issued in
connection with Stock Purchase Units].

SECTION 102.         COMPLIANCE CERTIFICATES AND OPINIONS.

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

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

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

                                       -7-
<PAGE>

                     (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  each  such
              individual,  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,  in the opinion of each
              such  individual,  such  condition or covenant  has been  complied
              with.

SECTION 103.         FORM OF DOCUMENTS DELIVERED TO TRUSTEE.

              (a)    Any Officer's  Certificate  may be based  (without  further
examination  or  investigation),  insofar as it relates to or is dependent  upon
legal matters,  upon an opinion of, or representations  by, counsel,  unless, in
any case,  such officer has actual  knowledge that the certificate or opinion or
representations   with  respect  to  the  matters  upon  which  such   Officer's
Certificate may be based as aforesaid are erroneous.

              Any Opinion of Counsel may be based (without  further  examination
or  investigation),  insofar  as it  relates  to or is  dependent  upon  factual
matters,  information with respect to which is in the possession of the Company,
upon a  certificate  of, or  representations  by, an officer or  officers of the
Company,  as the case may be, unless such counsel has actual  knowledge that the
certificate or opinion or representations with respect to the matters upon which
his opinion may be based as aforesaid are erroneous. In addition, any Opinion of
Counsel may be based (without further examination or investigation),  insofar as
it  relates to or is  dependent  upon  matters  covered in an Opinion of Counsel
rendered  by other  counsel,  upon such other  Opinion of  Counsel,  unless such
counsel has actual  knowledge that the Opinion of Counsel rendered by such other
counsel  with  respect to the  matters  upon which his Opinion of Counsel may be
based as aforesaid are erroneous.  If, in order to render any Opinion of Counsel
provided for herein,  the signer thereof shall deem it necessary that additional
facts or matters be stated in any  Officer's  Certificate  provided  for herein,
then such  certificate  may state all such  additional  facts or  matters as the
signer of such Opinion of Counsel may request.

              (b)    In any  case  where  several  matters  are  required  to be
certified  by, or covered by an opinion  of,  any  specified  Person,  it is not
necessary  that all such matters be certified  by, or covered by the opinion of,
only one such  Person,  or that  they be so  certified  or  covered  by only one
document,  but one such  Person may certify or give an opinion  with  respect to
some  matters and one or more other such  Persons as to other  matters,  and any
such Person may certify or give an opinion as to such  matters in one or several
documents. Where (i) any Person is required to make, give or execute two or more
applications,  requests, consents,  certificates,  statements, opinions or other
instruments under this Indenture,  or (ii) two or more Persons are each required
to make, give or execute any such application,  request,  consent,  certificate,
statement,  opinion  or  other  instrument,  any  such  applications,  requests,
consents, certificates,  statements, opinions or other instruments may, but need
not, be consolidated and form one instrument.

              (c)    Whenever,  subsequent  to the receipt by the Trustee of any
Board Resolution, Officer's Certificate, Opinion of Counsel or other document or
instrument,  a clerical,  typographical  or other  inadvertent or  unintentional
error or omission shall be discovered  therein, a new document or instrument may
be  substituted  therefor in corrected form with the same force and effect as if
originally filed in the corrected form and, irrespective of the date or dates of
the actual  execution  and/or  delivery  thereof,  such  substitute  document or
instrument shall be deemed to have been executed and/or delivered as of the date
or dates  required  with respect to the document or  instrument  for which it is
substituted. Anything in this Indenture to the contrary notwithstanding,  if any
such corrective  document or instrument  indicates that action has been taken by
or at the  request  of the  Company  which  could  not have  been  taken had the
original document or instrument not contained such error or omission, the action
so taken shall not be invalidated or otherwise rendered ineffective but shall be
and remain in full force and effect, except to the extent that such action was a
result of willful  misconduct or bad faith.  Without  limiting the generality of
the  foregoing,  any  Securities  issued under the  authority of such  defective
document  or  instrument  shall  nevertheless  be the valid  obligations  of the
Company entitled to the benefits of this Indenture  equally and ratably with all
other Outstanding Securities, except as aforesaid.

                                       -8-
<PAGE>

SECTION 104.         ACTS OF HOLDERS.

              (a)    Any  request,  demand,  authorization,  direction,  notice,
consent, election, waiver or other action provided by this Indenture to be made,
given  or taken by  Holders  may be  embodied  in and  evidenced  by one or more
instruments of  substantially  similar tenor signed by such Holders in person or
by an agent duly appointed in writing or, alternatively,  may be embodied in and
evidenced by the record of Holders voting in favor thereof,  either in person or
by proxies duly appointed in writing,  at any meeting of Holders duly called and
held in accordance with the provisions of Article Thirteen,  or a combination of
such  instruments  and any such  record.  Except as herein  otherwise  expressly
provided, such action shall become effective when such instrument or instruments
or record or both are delivered to the Trustee and, where it is hereby expressly
required,  to the Company.  Such  instrument or instruments  and any such record
(and the action  embodied  therein and evidenced  thereby) are herein  sometimes
referred to as the "Act" of the Holders  signing such  instrument or instruments
and so voting at any such meeting.  Proof of execution of any such instrument or
of a writing  appointing  any such  agent,  or of the holding by any Person of a
Security,  shall be sufficient for any purpose of this Indenture and (subject to
Section 901) conclusive in favor of the Trustee and the Company,  if made in the
manner  provided in this Section.  The record of any meeting of Holders shall be
proved in the manner provided in Section 1306.

              (b)    The fact and date of the  execution  by any  Person  of any
such  instrument  or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer  authorized by
law to take  acknowledgments  of deeds,  certifying that the individual  signing
such instrument or writing  acknowledged to him the execution  thereof or may be
proved in any other manner  which the Trustee and the Company  deem  sufficient.
Where  such  execution  is by a  signer  acting  in a  capacity  other  than his
individual  capacity,  such  certificate  or  affidavit  shall  also  constitute
sufficient proof of his authority.

              (c)    The  ownership,   principal  amount  (except  as  otherwise
contemplated   in  clause  (y)  of  the  first  proviso  to  the  definition  of
Outstanding)  and serial numbers of Securities held by any Person,  and the date
of holding the same, shall be proved by the Security Register.

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

              (e)    Until  such time as  written  instruments  shall  have been
delivered to the Trustee with respect to the  requisite  percentage of principal
amount of Securities for the action  contemplated by such instruments,  any such
instrument  executed  and  delivered  by or on behalf of a Holder may be revoked
with respect to any or all of such  Securities by written  notice by such Holder
or any  subsequent  Holder,  proven in the manner in which such  instrument  was
proven.

              (f)    Securities   of  any  series,   or  any  Tranche   thereof,
authenticated  and delivered after any Act of Holders may, and shall if required
by the Trustee, bear a notation in form approved by the Trustee as to any action
taken by such Act of Holders. If the Company shall so determine,  new Securities
of any series, or any Tranche thereof, so modified as to conform, in the opinion
of the Trustee and the  Company,  to such action may be prepared and executed by
the Company and the Guarantor and  authenticated and delivered by the Trustee in
exchange for Outstanding Securities of such series or Tranche.

              (g)    The  Company  may,  at its  option,  by Company  Order,  as
appropriate,  fix in  advance a record  date for the  determination  of  Holders
entitled to give any request, demand, authorization, direction, notice, consent,
waiver or other Act  solicited  by the  Company,  but the Company  shall have no
obligation to do so;  provided,  however,  that the Company may not fix a record
date for the giving or making of any notice,  declaration,  request or direction
referred to in the next sentence.  In addition,  the Trustee may, at its option,
fix in advance a record date for the  determination  of Holders entitled to join
in  the  giving  or  making  of  any  Notice  of  Default,  any  declaration  of
acceleration  referred to in Section 802,  any request to institute  proceedings
referred to in Section 807 or any  direction  referred to in Section 812. If any
such record  date is fixed,  such  request,  demand,  authorization,  direction,
notice,  consent, waiver or other Act, or such notice,  declaration,  request or
direction, may be given before

                                       -9-
<PAGE>

or after  such  record  date,  but only the  Holders  of  record at the close of
business on the record  date shall be deemed to be Holders  for the  purposes of
determining (i) whether  Holders of the requisite  proportion of the Outstanding
Securities  have  authorized  or agreed or  consented  to such Act (and for that
purpose the  Outstanding  Securities  shall be  computed as of the record  date)
and/or (ii) which  Holders may revoke any such Act  (notwithstanding  subsection
(e) of this Section ); and any such Act, given as aforesaid,  shall be effective
whether or not the Holders  which  authorized or agreed or consented to such Act
remain Holders after such record date and whether or not the Securities  held by
such Holders remain Outstanding after such record date.

SECTION 105.         NOTICES, ETC. TO TRUSTEE OR COMPANY.

              Any request, demand,  authorization,  direction,  notice, consent,
election,  waiver or Act of Holders or other  document  provided or permitted by
this  Indenture  to be made upon,  given or  furnished  to, or filed  with,  the
Trustee by any Holder or by the Company, or the Company by the Trustee or by any
Holder,  shall be  sufficient  for every  purpose  hereunder  (unless  otherwise
expressly provided herein) if in writing and delivered  personally to an officer
or other  responsible  employee of the  addressee,  or  transmitted by facsimile
transmission,  telex or other direct written  electronic means to such telephone
number or other electronic communications address set forth for such party below
or such other address as the parties  hereto shall from time to time  designate,
or transmitted by registered mail,  charges prepaid,  to the applicable  address
set forth for such party below or to such other  address as any party hereto may
from time to time designate:

                     If to the Trustee, to:

                     The Bank of New York
                     5 Penn Plaza, 13th Floor
                     New York, New York 10001

                     Attention:  [Capital Markets Fiduciary Services]
                     Telephone:
                     Telecopy:

                     If to the Company, to:

                       SOUTHWESTERN ELECTRIC POWER COMPANY
                     1 Riverside Plaza
                     Columbus, Ohio  43215
                     Attention: Treasurer

                     Telephone:(614) 223-____ Telecopy: (614) 223-1687

              Any communication contemplated herein shall be deemed to have been
made,  given,  furnished  and  filed  if  personally  delivered,  on the date of
delivery,  if  transmitted  by  facsimile  transmission,  telex or other  direct
written  electronic  means, on the date of  transmission,  and if transmitted by
registered mail, on the date of receipt.

SECTION 106.         NOTICE TO HOLDERS OF SECURITIES; WAIVER.

              Except  as  otherwise   expressly  provided  herein,   where  this
Indenture  provides  for notice to Holders of any event,  such  notice  shall be
sufficiently  given,  and shall be deemed  given,  to Holders if in writing  and
mailed,  first-class  postage prepaid, to each Holder affected by such event, at
the address of such  Holder as it appears in the  Security  Register,  not later
than the latest date, and not earlier than the earliest date, prescribed for the
giving of such Notice.

              In case by reason of the  suspension of regular mail service or by
reason  of any other  cause it shall be  impracticable  to give  such  notice to
Holders by mail, then such notification as shall be made with the approval of

                                      -10-
<PAGE>

the  Trustee  shall  constitute  a  sufficient  notification  for every  purpose
hereunder.  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.

              Any notice  required by this Indenture may be waived in writing by
the Person  entitled to receive  such notice,  either  before or after the event
otherwise to be specified  therein,  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.

SECTION 107.         CONFLICT WITH TRUST INDENTURE ACT.

              If any provision of this Indenture limits,  qualifies or conflicts
with another provision hereof which is required or deemed to be included in this
Indenture by, or is otherwise  governed by, any provision of the Trust Indenture
Act, such other provision shall control;  and if any provision  hereof otherwise
conflicts with the Trust Indenture Act, the Trust Indenture Act shall control.

SECTION 108.         EFFECT OF HEADINGS.

              The  Article  and  Section  headings  in  this  Indenture  are for
convenience only and shall not affect the construction hereof.

SECTION 109.         SUCCESSORS AND ASSIGNS.

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

SECTION 110.         SEPARABILITY CLAUSE.

              In case any provision in this Indenture or the Securities shall be
held to be  invalid,  illegal  or  unenforceable,  the  validity,  legality  and
enforceability  of the remaining  provisions shall not in any way be affected or
impaired thereby.

SECTION 111.         BENEFITS OF INDENTURE.

              Nothing in this Indenture or the  Securities,  express or implied,
shall  give to any  Person,  other than the  parties  hereto,  their  successors
hereunder,  the Holders and the holders of Senior  Indebtedness,  any benefit or
any legal or equitable right,  remedy or claim under this Indenture [, provided,
however,  that for so long as any Preferred  Securities remain outstanding,  the
holders of such Preferred  Securities,  subject to certain limitations set forth
in this Indenture,  may enforce the Company's  obligations  hereunder,  directly
against the Company,  as third party  beneficiaries  of this  Indenture  without
proceeding against the Trust issuing such Preferred Securities].

SECTION 112.         GOVERNING LAW.

              This  Indenture  and  the  Securities  shall  be  governed  by and
construed in accordance with the law of the State of New York (including without
limitation  Section  5-1401  of the  New  York  General  Obligations  Law or any
successor to such  statute),  except to the extent that the Trust  Indenture Act
shall be applicable.

SECTION 113.         LEGAL HOLIDAYS.

              In any case where any Interest  Payment Date,  Redemption  Date or
Stated  Maturity  of any  Security  shall not be a Business  Day at any Place of
Payment,  then  (notwithstanding any other provision of this Indenture or of the
Securities  other than a provision in Securities  of any series,  or any Tranche
thereof, or in the indenture  supplemental hereto, Board Resolution or Officer's
Certificate  which  establishes  the terms of the  Securities  of such series or
Tranche,  which  specifically  states that such provision shall apply in lieu of
this Section) payment of interest or principal and premium,  if any, need not be
made at such Place of Payment on such date, but may be made on the

                                      -11-
<PAGE>

next  succeeding  Business  Day at such Place of Payment [,  except that if such
Business Day is in the next succeeding calendar year, such payment shall be made
on the immediately preceding Business Day, in each case] with the same force and
effect as if made on the  Interest  Payment  Date,  Redemption  Date,  or Stated
Maturity,  and, if such payment is made or duly  provided  for on such  Business
Day, no interest  shall  accrue on the amount so payable for the period from and
after such Interest  Payment Date,  Redemption Date or Stated  Maturity,  as the
case may be, to such Business Day.

                                   ARTICLE TWO

                                 SECURITY FORMS

SECTION 201.         FORMS GENERALLY.

              The definitive  Securities of each series and the Guarantees to be
endorsed  thereon as contemplated by Article  Fourteen shall be in substantially
the form or forms  thereof  established  in the  indenture  supplemental  hereto
establishing  such series or in a Board Resolution  establishing such series, or
in an Officer's  Certificate pursuant to such a supplemental  indenture or Board
Resolution,   in  each  case  with  such  appropriate   insertions,   omissions,
substitutions  and  other  variations  as are  required  or  permitted  by  this
Indenture,  and may have such letters,  numbers or other marks of identification
and such  legends or  endorsements  placed  thereon as may be required to comply
with the rules of any securities exchange or as may,  consistently  herewith, be
determined by the officers  executing  such  Securities  or Guarantees  endorsed
thereon,  as the case may be, as evidenced by their  execution  thereof.  If the
form or forms of  Securities of any series or  Guarantees  endorsed  thereon are
established in a Board Resolution or in an Officer's  Certificate  pursuant to a
Board Resolution, such Board Resolution and Officer's Certificate, if any, shall
be  delivered  to the Trustee at or prior to the  delivery of the Company  Order
contemplated  by  Section  303  for  the  authentication  and  delivery  of such
Securities.

              Unless  otherwise  specified  as  contemplated  by Section  301 or
1201(g),  the  Securities  of each series shall be issuable in  registered  form
without coupons. The definitive Securities and Guarantees endorsed thereon shall
be produced in such manner as shall be determined by the officers executing such
Securities or Guarantees, as evidenced by their execution thereof.

SECTION 202.         FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION.

              The  Trustee's   certificate   of   authentication   shall  be  in
substantially the form set forth below:

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

                                   --------------------------------,
                                   as Trustee

                                   By:
                                      -----------------------------
                                      Authorized Officer

                                  ARTICLE THREE

                                 THE SECURITIES

SECTION 301.         AMOUNT UNLIMITED; ISSUABLE IN SERIES.

              The  aggregate   principal  amount  of  Securities  which  may  be
authenticated  and  delivered  under this  Indenture is  unlimited [;  provided,
however,  that all Securities  shall be issued to a Trust to evidence loans by a
Trust of the  proceeds  of the  issuance  of  Preferred  Securities  and  Common
Securities of such Trust.]

                                      -12-
<PAGE>

              The Securities may be issued in one or more series. Subject to the
last  paragraph of this  Section,  prior to the  authentication  and delivery of
Securities  of any series  there  shall be  established  by  specification  in a
supplemental  indenture  or  in a  Board  Resolution  of  the  Company  or in an
Officer's  Certificate of the Company (which need not,  comply with Section 102)
pursuant to a supplemental indenture or a Board Resolution:

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

                     (b)    any limit upon the aggregate principal amount of the
              Securities of such series which may be authenticated and delivered
              under this  Indenture  (except for  Securities  authenticated  and
              delivered upon registration of transfer of, or in exchange for, or
              in lieu of, other  Securities  of such series  pursuant to Section
              304,  305, 306, 406 or 1206 and except for any  Securities  which,
              pursuant  to  Section   303,   are  deemed   never  to  have  been
              authenticated and delivered hereunder);

                     (c)    the    Person   or   Persons    (without    specific
              identification) to whom any interest on Securities of such series,
              or any Tranche thereof, shall be payable, if other than the Person
              in  whose  name  that   Security  (or  one  or  more   Predecessor
              Securities)  is registered at the close of business on the Regular
              Record Date for such interest;

                     (d)    the  date or dates on  which  the  principal  of the
              Securities  of such series or any Tranche  thereof,  is payable or
              any formulary or other method or other means by which such date or
              dates shall be determined,  by reference to an index or other fact
              or event  ascertainable  outside of this  Indenture  or  otherwise
              (without  regard to any  provisions  for  redemption,  prepayment,
              acceleration, purchase or extension);

                     (e)    the rate or rates at which  the  Securities  of such
              series,  or any  Tranche  thereof,  shall  bear  interest,  if any
              (including the rate or rates at which overdue principal shall bear
              interest  after  Maturity if  different  from the rate or rates at
              which such Securities shall bear interest prior to Maturity,  and,
              if  applicable,  the rate or rates at  which  overdue  premium  or
              interest shall bear  interest,  if any), or any formulary or other
              method  or  other  means  by which  such  rate or  rates  shall be
              determined  by  reference  to an  index  or  other  fact or  event
              ascertainable outside of this Indenture or otherwise,  the date or
              dates from which such interest shall accrue;  the Interest Payment
              Dates and the  Regular  Record  Dates,  if any,  for the  interest
              payable on such  Securities  on any Interest  Payment  Date;  [the
              right of the  Company,  if any,  to extend  the  interest  payment
              periods and the duration of any such extension as  contemplated by
              Section 312;] and the basis of computation  of interest,  if other
              than as provided in Section 310;

                     (f)    the place or places  at which or  methods  (if other
              than as provided  elsewhere  in this  Indenture)  by which (i) the
              principal  of and  premium,  if any,  and  interest,  if  any,  on
              Securities  of such  series,  or any  Tranche  thereof,  shall  be
              payable,  (ii)  registration  of  transfer of  Securities  of such
              series, or any Tranche thereof,  may be effected,  (iii) exchanges
              of  Securities  of such  series,  or any Tranche  thereof,  may be
              effected  and (iv)  notices  and demands to or upon the Company in
              respect of the Securities of such series,  or any Tranche thereof,
              and this Indenture may be served;  the Security  Registrar and any
              Paying Agent or Agents for such series or Tranche;  and if such is
              the case, that the principal of such  Securities  shall be payable
              without presentment or surrender thereof;

                     (g)    the period or periods  within which,  or the date or
              dates on  which,  the  price or  prices at which and the terms and
              conditions  upon  which  the  Securities  of such  series,  or any
              Tranche  thereof,  may be  redeemed,  in whole or in part,  at the
              option of the Company and any restrictions on such redemptions;

                     (h)    the obligation,  if any, of the Company to redeem or
              purchase or repay the  Securities  of such series,  or any Tranche
              thereof,   pursuant  to  any  sinking  fund  or  other   mandatory
              redemption provisions or at the option of a Holder thereof and the
              period or periods within which or the date or dates on which,  the
              price or prices at which and the terms and conditions upon which

                                      -13-
<PAGE>

              such Securities shall be redeemed or purchased or repaid, in whole
              or in part, pursuant to such obligation and applicable  exceptions
              to the  requirements  of  Section  404 in the  case  of  mandatory
              redemption or redemption or repayment at the option of the Holder;

                     (i)    the   denominations  in  which  Securities  of  such
              series,  or any Tranche  thereof,  shall be issuable if other than
              denominations of $[25] and any integral multiple thereof;

                     (j)    if the principal of or premium, if any, or interest,
              if any, on the Securities of such series,  or any Tranche thereof,
              are to be  payable,  at the  election  of the  Company or a Holder
              thereof,  in a coin or  currency  other  than  that in  which  the
              Securities are stated to be payable,  the period or periods within
              which, and the terms and conditions upon which,  such election may
              be made  and the  manner  in  which  the  amount  of such  coin or
              currency payable is to be determined;

                     (k)    the  currency  or  currencies,  including  composite
              currencies,  in which payment of the principal of and premium,  if
              any, and interest,  if any, on the  Securities of such series,  or
              any Tranche thereof,  shall be payable (if other than Dollars) and
              the manner in which the equivalent of the principal amount thereof
              in Dollars is to be determined for any purpose,  including for the
              purpose  of  determining   the  principal   amount  deemed  to  be
              Outstanding at any time;

                     (l)    if the principal of or premium,  if any, or interest
              on the Securities of such series,  or any Tranche thereof,  are to
              be payable, or are to be payable at the election of the Company or
              a Holder thereof,  in securities or other  property,  the type and
              amount of such securities or other  property,  or the formulary or
              other  method  or  other  means  by  which  such  amount  shall be
              determined,  and the period or periods within which, and the terms
              and conditions upon which, any such election may be made;

                     (m)    if the amount  payable in respect of principal of or
              premium,  if any, or interest,  if any, on the  Securities of such
              series,  or any Tranche thereof,  may be determined with reference
              to an index or other  fact or  event  ascertainable  outside  this
              Indenture, the manner in which such amounts shall be determined to
              the  extent  not  established  pursuant  to  clause  (e)  of  this
              paragraph;

                     (n)    if other than the entire  principal  amount thereof,
              the portion of the principal  amount of Securities of such series,
              or any Tranche thereof, which shall be payable upon declaration of
              acceleration of the Maturity thereof pursuant to Section 802;

                     (o)    any  Events  of   Default,   in  addition  to  those
              specified in Section 801, or any exceptions to those  specified in
              Section 801, with respect to the  Securities  of such series,  and
              any  covenants of the Company or the  Guarantor for the benefit of
              the  Holders of the  Securities  of such  series,  or any  Tranche
              thereof,  in  addition  to those set forth in Article  Six, or any
              exceptions to those set forth in Article Six;

                     (p)    the terms, if any,  pursuant to which the Securities
              of such series,  or any Tranche thereof,  may be converted into or
              exchanged for shares of capital  stock or other  securities of the
              Company or any other Person;

                     (q)    the obligations or instruments,  if any, which shall
              be  considered  to be  Eligible  Obligations  in  respect  of  the
              Securities of such series, or any Tranche thereof,  denominated in
              a currency other than Dollars or in a composite currency,  and any
              provisions  for  satisfaction  and  discharge of Securities of any
              series,  in addition to those set forth in Section 701 and 702, or
              any exceptions to those set forth in Section 701 and 702;

                     (r)    if the  Securities  of such  series,  or any Tranche
              thereof,  are to be issued in global form, (i) any  limitations on
              the rights of the Holder or Holders of such Securities to transfer
              or  exchange  the same or to obtain the  registration  of transfer
              thereof, (ii) any limitations on the rights

                                      -14-
<PAGE>

              of the Holder or Holders thereof to obtain  certificates  therefor
              in  definitive  form in lieu of  global  form and  (iii) any other
              matters incidental to such Securities;

                     (s)    if the  Securities  of such  series,  or any Tranche
              thereof,  are to be  issuable  as bearer  securities,  any and all
              matters incidental thereto which are not specifically addressed in
              a supplemental  indenture as contemplated by clause (g) of Section
              1201;

                     (t)    to the extent not established pursuant to clause (r)
              of this paragraph, any limitations on the rights of the Holders of
              the Securities of such Series, or any Tranche thereof, to transfer
              or  exchange  such  Securities  or to obtain the  registration  of
              transfer  thereof;  and if a service  charge  will be made for the
              registration of transfer or exchange of Securities of such series,
              or any Tranche thereof, the amount or terms thereof;

                     (u)    any  exceptions  to Section 113, or variation in the
              definition of Business Day, with respect to the Securities of such
              series, or any Tranche thereof;

                     (v)    the designation of the Trust to which  Securities of
              such series are to be issued;]

                     (w)    any other terms of the Securities of such series, or
              any Tranche thereof.

              With  respect  to  Securities  of a series  subject  to a Periodic
Offering,  the  indenture  supplemental  hereto  or the Board  Resolution  which
establishes  such  series,  or  the  Officer's   Certificate  pursuant  to  such
supplemental  indenture  or Board  Resolution,  as the case may be, may  provide
general terms or  parameters  for  Securities of such series and provide  either
that the specific  terms of Securities of such series,  or any Tranche  thereof,
shall be specified in a Company  Order or that such terms shall be determined by
the Company or its agents in accordance with  procedures  specified in a Company
Order as contemplated in clause (b) of Section 303.

              [All   Securities  of  any  one  series  shall  be   substantially
identical,  except as to principal amount and date of issue and except as may be
set forth in the terms of such series as contemplated  above.] The Securities of
each series shall be subordinated in right of payment to Senior  Indebtedness of
the Company as provided in Article Fifteen.

              Unless  otherwise  provided with respect to a series of Securities
as contemplated in Section 301(b), the aggregate principal amount of a series of
Securities  may be increased  and  additional  Securities  of such series may be
issued up to the maximum  aggregate  principal amount authorized with respect to
such series as increased.

SECTION 302.         DENOMINATIONS.

              Unless  otherwise  provided  as  contemplated  by Section 301 with
respect to any series of Securities,  or any Tranche thereof,  the Securities of
each  series  shall be  issuable  in  denominations  of $[25]  and any  integral
multiple thereof.

SECTION 303.         EXECUTION, AUTHENTICATION, DELIVERY AND DATING.

              Unless  otherwise  provided  as  contemplated  by Section 301 with
respect to any series of Securities or any Tranche thereof, the Securities shall
be executed on behalf of the Company by an  Authorized  Officer of the  Company,
and may have the  corporate  seal of the Company  affixed  thereto or reproduced
thereon attested by its Secretary, one of its Assistant Secretaries or any other
Authorized  Officer.  The  signature  of any or all  of  these  officers  on the
Securities may be manual or facsimile.

              A  Security  bearing  the  manual  or  facsimile  signature  of an
individual who was at the time of execution an Authorized Officer of the Company
shall bind the Company,  notwithstanding  that any such individual has ceased to
be an  Authorized  Officer  prior  to the  authentication  and  delivery  of the
Security or did not hold such office at the date of such Security.

                                      -15-
<PAGE>

              The Trustee shall authenticate and deliver Securities of a series,
for  original  issue,  at one time or from time to time in  accordance  with the
Company Order referred to below, upon receipt by the Trustee of:

                     (a)    the instrument or instruments  establishing the form
              or forms and terms of the  Securities of such series,  as provided
              in Sections 201 and 301;

                     (b)    a Company Order  requesting the  authentication  and
              delivery of such Securities,  and, to the extent that the terms of
              such  Securities  shall not have been  established in an indenture
              supplemental  hereto or in a Board Resolution,  or in an Officer's
              Certificate   pursuant  to  a  supplemental   indenture  or  Board
              Resolution,  all as  contemplated  by Sections 201 and 301, either
              (i) establishing such terms or (ii) in the case of Securities of a
              series  subject to a  Periodic  Offering,  specifying  procedures,
              acceptable  to  the  Trustee,  by  which  such  terms  are  to  be
              established   (which   procedures  may  provide,   to  the  extent
              acceptable  to  the  Trustee,   for  authentication  and  delivery
              pursuant to oral or  electronic  instructions  from the Company or
              any agent or agents  thereof,  which oral  instructions  are to be
              promptly confirmed  electronically or in writing),  in either case
              in  accordance  with  the  instrument  or  instruments   delivered
              pursuant to clause (a) above;

                     (c)    Securities  of such series,  each executed on behalf
              of the Company by an Authorized Officer of the Company;

                     (d)    an Opinion of Counsel to the effect that:

                     (i)    (A) the  forms of such  Securities  have  been  duly
              authorized  by the  Company and the forms of the  Securities  have
              been  established  in  conformity  with  the  provisions  of  this
              Indenture;

                     (ii)   (A) the  terms of such  Securities  have  been  duly
              authorized  by the  Company and the terms of the  Securities  have
              been  established  in  conformity  with  the  provisions  of  this
              Indenture; and

                     (iii)  such Securities endorsed thereon, when authenticated
              and  delivered  by the  Trustee  and issued and  delivered  by the
              Company in the manner and subject to any  conditions  specified in
              such  Opinion of Counsel,  will have been duly  issued  under this
              Indenture   and  will   constitute   valid  and  legally   binding
              obligations of the Company,  entitled to the benefits  provided by
              this  Indenture,  and  enforceable in accordance with their terms,
              subject,  as to  enforcement,  to laws  relating  to or  affecting
              generally the enforcement of creditors' rights, including, without
              limitation,   bankruptcy  and  insolvency   laws  and  to  general
              principles of equity (regardless of whether such enforceability is
              considered in a proceeding in equity as at law);

provided,  however,  that,  with respect to Securities of a series  subject to a
Periodic  Offering,  the Trustee  shall be entitled to receive  such  Opinion of
Counsel  only  once at or  prior  to the time of the  first  authentication  and
delivery  of  Securities  of such  series,  and  that  in  lieu of the  opinions
described  in  clauses  (ii) and  (iii)  above  such  Opinion  of  Counsel  may,
alternatively, state, respectively,

                     (x)    that,  when  the  terms  of  such  Securities  to be
              endorsed thereon shall have been established pursuant to a Company
              Order or Orders or Orders or pursuant to such procedures as may be
              specified  from time to time by a Company Order or Orders,  all as
              contemplated   by  and  in  accordance   with  the  instrument  or
              instruments  delivered  pursuant  to clause (a) above,  such terms
              will have been duly authorized by the Company,  and will have been
              established in conformity  with the provisions of this  Indenture;
              and

                     (y)    that  such  Securities,  when  (1)  executed  by the
              Company,  (2)  authenticated  and  delivered  by  the  Trustee  in
              accordance  with this  Indenture,  (3) issued and delivered by the
              Company and (4) paid for, all as contemplated by and in accordance
              with  the   aforesaid   Company   Order  or  Orders  or  specified
              procedures,  as the case may be, will have been duly issued  under
              this

                                      -16-
<PAGE>

              Indenture   and  will   constitute   valid  and  legally   binding
              obligations  of the Company and entitled to the benefits  provided
              by the Indenture,  and enforceable in accordance with their terms,
              subject,  as to  enforcement,  to laws  relating  to or  affecting
              generally the enforcement of creditors' rights, including, without
              limitation,   bankruptcy  and  insolvency   laws  and  to  general
              principles of equity (regardless of whether such enforceability is
              considered in a proceeding in equity or at law).

              With  respect  to  Securities  of a series  subject  to a Periodic
Offering,  the Trustee may  conclusively  rely, as to the  authorization  by the
Company of any of such Securities, the forms and terms thereof and the legality,
validity, binding effect and enforceability thereof, upon the Opinion of Counsel
and other documents delivered pursuant to Sections 201 and 301 and this Section,
as applicable, at or prior to the time of the first authentication of Securities
of such  series,  unless and until such  opinion  or other  documents  have been
superseded  or  revoked  or  expire  by  their  terms.  In  connection  with the
authentication  and delivery of Securities  of a series,  pursuant to a Periodic
Offering,   the  Trustee   shall  be  entitled  to  assume  that  the  Company's
instructions to  authenticate  and deliver such  Securities,  do not violate any
applicable law or any applicable  rule,  regulation or order of any governmental
agency or commission having jurisdiction over the Company.

              If the forms or terms of the  Securities  of any series  have been
established by or pursuant to a Board Resolution or an Officer's  Certificate as
permitted  by  Sections  201 or  301,  the  Trustee  shall  not be  required  to
authenticate such Securities if the issuance of such Securities pursuant to this
Indenture will adversely  affect the Trustee's own rights,  duties or immunities
under the  Securities  and this  Indenture or otherwise in a manner which is not
reasonably acceptable to the Trustee.

              Except as otherwise  specified as contemplated by Section 301 with
respect to any series of  securities,  or any Tranche  thereof,  each  Security,
shall each be dated the date of its authentication.

              Except as otherwise  specified as contemplated by Section 301 with
respect to any series of Securities,  or any Tranche thereof,  no Security shall
be entitled to any benefit under this  Indenture or be valid or  obligatory  for
any  purpose   unless  there  appears  on  such   Security  a   certificate   of
authentication  substantially  in the form  provided for herein  executed by the
Trustee or its agent by manual signature of an authorized  officer thereof,  and
such  certificate upon any Security shall be conclusive  evidence,  and the only
evidence, that such Security has been duly authenticated and delivered hereunder
and  is  entitled  to  the  benefits  of  this  Indenture.  Notwithstanding  the
foregoing, if any Security shall have been authenticated and delivered hereunder
to the Company,  or any Person  acting on its behalf,  but shall never have been
issued and sold by the Company,  and the Company  shall deliver such Security to
the Trustee for  cancellation as provided in Section 309 together with a written
statement (which need not comply with Section 102 and need not be accompanied by
an Opinion of Counsel) stating that such Security has never been issued and sold
by the Company, for all purposes of this Indenture such Security shall be deemed
never to have been  authenticated  and  delivered  hereunder  and shall never be
entitled to the benefits hereof.

SECTION 304.         TEMPORARY SECURITIES.

              Pending the preparation of definitive Securities of any series, or
any Tranche thereof, the Company may execute, and upon Company Order the Trustee
shall  authenticate  and  deliver,   temporary  Securities  which  are  printed,
lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Securities in lieu of
which  they  are   issued,   with  such   appropriate   insertions,   omissions,
substitutions and other variations as the officers executing such Securities may
determine,  as  evidenced  by  their  execution  of such  Securities;  provided,
however, that temporary Securities need not recite specific redemption,  sinking
fund, conversion or exchange provisions.

              If temporary  Securities of any series or Tranche are issued,  the
Company  shall  cause  definitive  Securities  of such  series or  Tranche to be
prepared  without  unreasonable  delay.  After  the  preparation  of  definitive
Securities of such series or Tranche, the temporary Securities of such series or
Tranche  shall be  exchangeable  for  definitive  Securities  of such  series or
Tranche, upon surrender of the temporary Securities of such series or Tranche at
the office or agency of the  Company  maintained  pursuant  to Section  602 in a
Place of Payment for such series or Tranche,  without charge to the Holder. Upon
surrender for cancellation of any one or more temporary Securities of any series
or Tranche,  the Company shall execute and the Trustee  shall  authenticate  and
deliver in exchange therefor

                                      -17-
<PAGE>

definitive Securities of the same series or Tranche, of authorized denominations
and of like tenor and aggregate principal amount.

              Until  exchanged  in  full  as  hereinabove  provided,   temporary
Securities  shall in all  respects be entitled to the same  benefits  under this
Indenture as  definitive  Securities  of the same series and Tranche and of like
tenor authenticated and delivered hereunder.

SECTION 305.         REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE.

              The  Company  shall  cause  to be  kept in one of the  offices  or
agencies  designated  pursuant to Section 602, with respect to the Securities of
each series or any Tranche  thereof,  a register  (the  "Security  Register") in
which, subject to such reasonable  regulations as it may prescribe,  the Company
shall provide for the  registration  of Securities of such series or Tranche and
the registration of transfer thereof.  The Company shall designate one Person to
maintain  the  Security  Register for the  Securities  of each series,  and such
Person is referred to herein,  with  respect to such  series,  as the  "Security
Registrar."  Anything  herein to the contrary  notwithstanding,  the Company may
designate  one or more of its offices or an office of any  Affiliate  (including
the  Guarantor) as an office in which a register with respect to the  Securities
of one or more series, or any Tranche or Tranches thereof,  shall be maintained,
and the Company may designate itself or any Affiliate as the Security  Registrar
with respect to one or more of such series.  The Security Register shall be open
for inspection by the Trustee and the Company at all reasonable times.

              Except as otherwise  specified as contemplated by Section 301 with
respect to the Securities of any series, or any Tranche thereof,  upon surrender
for  registration  of transfer of any  Security of such series or Tranche at the
office or agency of the Company maintained pursuant to Section 602 in a Place of
Payment for such series or Tranche,  the Company shall execute,  and the Trustee
shall  authenticate  and deliver,  in the name of the  designated  transferee or
transferees,  one or more new  Securities  of the same  series and  Tranche,  of
authorized denominations and of like tenor and aggregate principal amount.

              Except as otherwise  specified as contemplated by Section 301 with
respect to the Securities of any series, or any Tranche thereof, any Security of
such series or Tranche may be  exchanged  at the option of the Holder for one or
more new Securities of the same series and Tranche, of authorized  denominations
and of  like  tenor  and  aggregate  principal  amount,  upon  surrender  of the
Securities to be exchanged at any such office or agency. Whenever any Securities
are so  surrendered  for exchange,  the Company shall  execute,  and the Trustee
shall  authenticate  and deliver,  the  Securities,  which the Holder making the
exchange is entitled to receive.

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

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

              Unless  otherwise  specified as  contemplated by Section 301, with
respect to Securities of any series,  or any Tranche thereof,  no service charge
shall be made for any  registration  of transfer or exchange of Securities,  but
the Company may require  payment of a sum  sufficient  to cover any tax or other
governmental  charge that may be imposed in connection with any  registration of
transfer or exchange of  Securities,  other than  exchanges  pursuant to Section
304, 406 or 1206 not involving any transfer.

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

                                      -18-
<PAGE>

SECTION 306.         MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES.

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

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

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

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

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

              The  provisions of this Section are  exclusive and shall  preclude
(to the  extent  lawful)  all other  rights  and  remedies  with  respect to the
replacement or payment of mutilated, destroyed, lost or stolen Securities.

SECTION 307.         PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED.

              Unless  otherwise  provided  as  contemplated  by Section 301 with
respect to the Securities of any series, or any Tranche thereof, interest on any
Security which is payable,  and is punctually  paid or duly provided for, on any
Interest  Payment  Date shall be paid to the Person in whose name that  Security
(or one or more  Predecessor  Securities) is registered at the close of business
on the Regular Record Date for such interest.

              [Subject  to Section  312,] any  interest  on any  Security of any
series which is payable, but is not punctually paid or duly provided for, on any
Interest Payment Date (herein called "Defaulted Interest") shall forthwith cease
to be payable  to the Holder on the  related  Regular  Record  Date by virtue of
having been such Holder, and such Defaulted Interest may be paid by the Company,
at its election in each case, as provided in clause (a) or (b) below:

                     (a)    The  Company  may  elect  to  make  payment  of  any
              Defaulted Interest to the Persons in whose names the Securities of
              such  series  (or their  respective  Predecessor  Securities)  are
              registered  at the close of business on a date (a "Special  Record
              Date") for the payment of such Defaulted Interest,  which shall be
              fixed in the  following  manner.  The  Company  shall  notify  the
              Trustee in writing of the amount of Defaulted Interest proposed to
              be paid on  each  Security  of  such  series  and the  date of the
              proposed  payment,  and at the same time the Company,  as the case
              may be, shall deposit with the Trustee an amount of money equal to
              the  aggregate  amount  proposed  to be  paid in  respect  of such
              Defaulted Interest or shall make arrangements  satisfactory to the
              Trustee  for  such  deposit  prior  to the  date  of the  proposed
              payment,  such  money when  deposited  to be held in trust for the
              benefit of the Persons entitled to such Defaulted Interest as in

                                      -19-
<PAGE>

              this clause  provided.  Thereupon  the Trustee shall fix a Special
              Record Date for the payment of such Defaulted Interest which shall
              be not more  than 15 days and not less  than 10 days  prior to the
              date of the  proposed  payment and not less than 10 days after the
              receipt by the Trustee of the notice of the proposed payment.  The
              Trustee shall  promptly  notify the Company of such Special Record
              Date and,  in the name and at the  expense of the  Company,  shall
              promptly  cause notice of the proposed  payment of such  Defaulted
              Interest  and the  Special  Record  Date  therefor  to be  mailed,
              first-class  postage prepaid, to each Holder of Securities of such
              series at the address of such Holder as it appears in the Security
              Register, not less than 10 days prior to such Special Record Date.
              Notice of the proposed payment of such Defaulted  Interest and the
              Special Record Date therefor having been so mailed, such Defaulted
              Interest  shall  be  paid  to  the  Persons  in  whose  names  the
              Securities  of  such  series  (or  their  respective   Predecessor
              Securities)  are  registered  at the  close  of  business  on such
              Special Record Date.

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

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

SECTION 308.         PERSONS DEEMED OWNERS.

              Prior  to  due  presentment  of a  Security  for  registration  of
transfer,  the Company,  the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name such  Security is  registered as the absolute
owner of such Security for the purpose of receiving  payment of principal of and
premium, if any, and (subject to Sections 305 and 307) interest, if any, on such
Security and for all other purposes whatsoever,  whether or not such Security be
overdue, and none of the Company, the Trustee or any agent of the Company or the
Trustee shall be affected by notice to the contrary.

SECTION 309.         CANCELLATION.

              All Securities surrendered for payment,  redemption,  registration
of transfer or exchange or for credit against any sinking fund payment shall, if
surrendered  to any Person other than the  Trustee,  be delivered to the Trustee
and, if not theretofore canceled, shall be promptly canceled by the Trustee. The
Company may at any time deliver to the Trustee for  cancellation  any Securities
previously  authenticated  and  delivered  hereunder  which the Company may have
acquired in any manner whatsoever or which the Company shall not have issued and
sold, and all Securities so delivered shall be promptly canceled by the Trustee.
No  Securities  shall  be  authenticated  in  lieu  of or in  exchange  for  any
Securities  canceled as provided in this Section,  except as expressly permitted
by this Indenture. All canceled Securities held by the Trustee shall be disposed
of in accordance with the Trustee's customary procedures,  and the Trustee shall
promptly  deliver a  certificate  of  disposition  to the Company  unless,  by a
Company Order, the Company shall direct that canceled  Securities be returned to
it.

SECTION 310.         COMPUTATION OF INTEREST.

              Except as otherwise  specified as  contemplated by Section 301 for
Securities of any series, or Tranche thereof, interest on the Securities of each
series  shall be computed on the basis of a 360-day  year  consisting  of twelve
30-day months,  and with respect to any period less than a full calendar  month,
on the basis of the actual number of days elapsed during such period.

                                      -20-
<PAGE>

SECTION 311.         PAYMENT TO BE IN PROPER CURRENCY.

              In the case of any Security denominated in any currency other than
Dollars  or  in a  composite  currency  (the  "Required  Currency"),  except  as
otherwise  specified  with respect to such Security as  contemplated  by Section
301, the obligation of the Company to make any payment of the principal thereof,
or the premium or interest thereon,  shall not be discharged or satisfied by any
tender by the Company,  or recovery by the Trustee,  in any currency  other than
the Required  Currency,  except to the extent that such tender or recovery shall
result in the Trustee  timely  holding the full amount of the Required  Currency
then due and payable. If any such tender or recovery is in a currency other than
the  Required  Currency,  the  Trustee  may take such  actions  as it  considers
appropriate to exchange such currency for the Required  Currency.  The costs and
risks of any such exchange,  including without limitation the risks of delay and
exchange rate  fluctuation,  shall be borne by the Company and the Company shall
remain  fully  liable for any  shortfall  or  delinquency  in the full amount of
Required  Currency  then due and  payable,  and in no  circumstances  shall  the
Trustee  be liable  therefor  except in the case of its  negligence  or  willful
misconduct. The Company hereby waives any defense of payment based upon any such
tender  or  recovery  which is not in the  Required  Currency,  or  which,  when
exchanged for the Required Currency by the Trustee, is less than the full amount
of Required Currency then due and payable.

[SECTION 312.        EXTENSION OF INTEREST PAYMENT.

              The Company  shall have the right at any time, so long as no Event
of  Default  hereunder  has  occurred  and is  continuing  with  respect  to the
Securities of any series,  to extend interest  payment periods from time to time
on all Securities of such series, if so specified as contemplated by Section 301
with  respect  to such  Securities  and upon such terms as may be  specified  as
contemplated by Section 301 with respect to such Securities.]

[SECTION 313.        ADDITIONAL INTEREST.

              So long as any Preferred  Securities  remain  outstanding,  if the
Trust which  issued such  Preferred  Securities  shall be required to pay,  with
respect to its income  derived from the interest  payments on the  Securities of
any series, any amounts for or on account of any taxes,  duties,  assessments or
governmental  charges of whatever  nature imposed by the United  States,  or any
other taxing authority, then, in any such case, the Company will pay as interest
on such  series  such  additional  interest  ("Additional  Interest")  as may be
necessary  in order that the net  amounts  received  and  retained by such Trust
after the payment of such taxes,  duties,  assessments or  governmental  charges
shall  result in such  Trust's  having  such  funds as it would  have had in the
absence of any such payments.]

              [Whenever in this  Indenture  there is mentioned,  in any context,
the payment of  interest  on the  Securities,  such  mention  shall be deemed to
include the payment of Additional  Interest to the extent that, in such context,
Additional Interest is, was or would be payable in respect thereof.]

                                  ARTICLE FOUR

                            REDEMPTION OF SECURITIES

SECTION 401.         APPLICABILITY OF ARTICLE.

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

SECTION 402.         ELECTION TO REDEEM; NOTICE TO TRUSTEE.

              The  election  of the  Company to redeem any  Securities  shall be
evidenced by a Board Resolution or an Officer's Certificate.  The Company shall,
at least 45 days prior to the  Redemption  Date fixed by the  Company  (unless a
shorter notice shall be satisfactory to the Trustee), notify the Trustee [and in
the case of Securities of a series held by a Trust,  the Property  Trustee under
the  related  Trust  Agreement]  in writing of such  Redemption  Date and of the
principal  amount  of  such  Securities  to be  redeemed.  In  the  case  of any
redemption of Securities (a) prior

                                      -21-
<PAGE>

to the expiration of any restriction on such redemption provided in the terms of
such Securities or elsewhere in this Indenture or (b) pursuant to an election of
the  Company  which is subject  to a  condition  specified  in the terms of such
Securities,  the Company shall furnish the Trustee with an Officer's Certificate
evidencing compliance with such restriction or condition.

SECTION 403.         SELECTION OF SECURITIES TO BE REDEEMED.

              If less than all the  Securities  of any  series,  or any  Tranche
thereof, are to be redeemed,  the particular  Securities to be redeemed shall be
selected  by the  Trustee  from the  Outstanding  Securities  of such  series or
Tranche  not  previously  called  for  redemption,  by such  method  as shall be
provided for such  particular  series or Tranche,  or in the absence of any such
provision, by such method of random selection as the Trustee shall deem fair and
appropriate and which may, in any case, provide for the selection for redemption
of portions (equal to any authorized  denomination for Securities of such series
or Tranche) of the principal amount of Securities of such series or Tranche of a
denomination  larger than the minimum authorized  denomination for Securities of
such series or Tranche; provided, however, that if, as indicated in an Officer's
Certificate,  the Company  shall have offered to purchase  all or any  principal
amount of the Securities then Outstanding of any series, or any Tranche thereof,
and less than all of such  Securities as to which such offer was made shall have
been tendered to the Company for such purchase,  the Trustee,  if so directed by
Company Order,  shall select for redemption all or any principal  amount of such
Securities which have not been so tendered.

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

              For all purposes of this Indenture,  unless the context  otherwise
requires,  all provisions relating to the redemption of Securities shall relate,
in the case of any  Securities  redeemed or to be redeemed  only in part, to the
portion of the principal  amount of such  Securities  which has been or is to be
redeemed.

SECTION 404.         NOTICE OF REDEMPTION.

              Notice of  redemption  shall be given in the  manner  provided  in
Section 106 to the  Holders of  Securities  to be redeemed  not less than 30 nor
more than 60 days prior to the Redemption Date.

              All notices of redemption shall state:

                     (a)    the Redemption Date,

                     (b)    the Redemption Price,

                     (c)    if less  than all the  Securities  of any  series or
              Tranche are to be redeemed,  the  identification of the particular
              Securities to be redeemed and the portion of the principal  amount
              of any Security to be redeemed in part,

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

                     (e)    the place or places where such  Securities are to be
              surrendered  for  payment  of the  Redemption  Price  and  accrued
              interest,   if  any,  unless  it  shall  have  been  specified  as
              contemplated  by Section 301 with respect to such  Securities that
              such surrender shall not be required,

                     (f)    that the  redemption is for a sinking or other fund,
              if such is the case, and

                     (g)    such  other   matters  as  the  Company  shall  deem
              desirable or appropriate.

                                      -22-
<PAGE>

              Unless  otherwise  specified  with  respect to any  Securities  in
accordance  with  Section  301,  with  respect  to any notice of  redemption  of
Securities  at the  election  of the  Company,  unless,  upon the giving of such
notice,  such  Securities  shall be deemed to have been paid in accordance  with
Section 701,  such notice may state that such  redemption  shall be  conditional
upon the receipt by the Paying Agent or Agents for such Securities,  on or prior
to the date fixed for such redemption,  of money sufficient to pay the principal
of and premium,  if any, and interest,  if any, on such  Securities  and that if
such money shall not have been so received  such notice  shall be of no force or
effect and the Company shall not be required to redeem such  Securities.  In the
event that such notice of redemption contains such a condition and such money is
not so received,  the redemption  shall not be made and within a reasonable time
thereafter  notice  shall be  given,  in the  manner  in  which  the  notice  of
redemption  was given,  that such money was not so received and such  redemption
was not required to be made.

              Notice of  redemption of Securities to be redeemed at the election
of the Company, and any notice of non-satisfaction of a condition for redemption
as  aforesaid,  shall be given by the  Company  or, on Company  Request,  by the
Trustee in the name and at the expense of the Company.

SECTION 405.         SECURITIES PAYABLE ON REDEMPTION DATE.

              Notice of  redemption  having  been  given as  aforesaid,  and the
conditions,  if any,  set  forth  in such  notice  having  been  satisfied,  the
Securities or portions  thereof so to be redeemed shall, on the Redemption Date,
become due and payable at the Redemption Price therein  specified,  and from and
after such date (unless,  in the case of an unconditional  notice of redemption,
the Company  shall  default in the payment of the  Redemption  Price and accrued
interest,  if any) such  Securities or portions  thereof,  if  interest-bearing,
shall cease to bear interest. Upon surrender of any such Security for redemption
in accordance  with such notice,  such Security or portion thereof shall be paid
by the Company at the Redemption Price,  together with accrued interest, if any,
to the Redemption  Date;  provided,  however,  that no such surrender shall be a
condition to such payment if so  specified as  contemplated  by Section 301 with
respect to such  Security;  and  provided,  further,  that  except as  otherwise
specified  as  contemplated  by Section 301 with respect to such  Security,  any
installment of interest on any Security the Stated Maturity of which installment
is on or prior to the  Redemption  Date  shall be  payable to the Holder of such
Security, or one or more Predecessor Securities, registered as such at the close
of business on the related  Regular  Record Date  according to the terms of such
Security and subject to the provisions of Sections 305 and 307.

SECTION 406.         SECURITIES REDEEMED IN PART.

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

                                  ARTICLE FIVE

                                  SINKING FUNDS

SECTION 501.         APPLICABILITY OF ARTICLE.

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

              The minimum amount of any sinking fund payment provided for by the
terms of Securities of any series, or any Tranche thereof, is herein referred to
as a "mandatory sinking fund payment", and any payment in excess of such minimum
amount  provided for by the terms of  Securities  of any series,  or any Tranche
thereof,  is herein  referred  to as an  "optional  sinking  fund  payment".  If
provided for by the terms of Securities of any series, or

                                      -23-
<PAGE>

any Tranche thereof,  the cash amount of any sinking fund payment may be subject
to  reduction as provided in Section  502.  Each  sinking fund payment  shall be
applied to the  redemption  of Securities of the series or Tranche in respect of
which it was made as provided for by the terms of such Securities.

SECTION 502.         SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES.

              The Company (a) may deliver to the Trustee Outstanding  Securities
(other  than any  previously  called for  redemption)  of a series or Tranche in
respect  of which a  mandatory  sinking  fund  payment is to be made and (b) may
apply as a credit  Securities of such series or Tranche which have been redeemed
either at the election of the Company  pursuant to the terms of such  Securities
or through the application of permitted  optional sinking fund payments pursuant
to the terms of such Securities, in each case in satisfaction of all or any part
of such mandatory sinking fund payment;  provided,  however,  that no Securities
shall be applied in  satisfaction  of a mandatory  sinking  fund payment if such
Securities shall have been previously so applied. Securities so applied shall be
received and credited  for such purpose by the Trustee at the  Redemption  Price
specified in such  Securities  for redemption  through  operation of the sinking
fund and the amount of such  mandatory  sinking  fund  payment  shall be reduced
accordingly.

SECTION 503.         REDEMPTION OF SECURITIES FOR SINKING FUND.

              Not less than 45 days prior to each  sinking fund payment date for
the Securities of any series, or any Tranche thereof,  the Company shall deliver
to the Trustee an Officer's Certificate specifying:

                     (a)    the amount of the next succeeding  mandatory sinking
              fund payment for such series or Tranche;

                     (b)    the amount,  if any, of the  optional  sinking  fund
              payment  to be made  together  with such  mandatory  sinking  fund
              payment;

                     (c)    the aggregate sinking fund payment;

                     (d)    the portion,  if any, of such aggregate sinking fund
              payment which is to be satisfied by the payment of cash;

                     (e)    the portion,  if any, of such aggregate sinking fund
              payment  which is to be  satisfied  by  delivering  and  crediting
              Securities  of such series or Tranche  pursuant to Section 502 and
              stating  the basis for such credit and that such  Securities  have
              not  previously  been so  credited,  and the  Company  shall  also
              deliver to the Trustee any  Securities to be so delivered.  If the
              Company  shall not deliver such  Officer's  Certificate,  the next
              succeeding  sinking fund payment for such series or Tranche  shall
              be made  entirely in cash in the amount of the  mandatory  sinking
              fund payment.  Not less than 30 days before each such sinking fund
              payment  date  the  Trustee  shall  select  the  Securities  to be
              redeemed  upon  such  sinking  fund  payment  date  in the  manner
              specified  in  Section  403 and  cause  notice  of the  redemption
              thereof  to be  given  in the  name of and at the  expense  of the
              Company in the manner  provided in Section 404. Such notice having
              been duly given,  the redemption of such Securities  shall be made
              upon the terms and in the manner stated in Sections 405 and 406.

                                   ARTICLE SIX

                                    COVENANTS

SECTION 601.         PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST.

              The Company  shall pay the  principal of and premium,  if any, and
interest, if any [(including  Additional  Interest)],  on the Securities of each
series in accordance with the terms of such Securities and this Indenture.

                                      -24-
<PAGE>

SECTION 602.         MAINTENANCE OF OFFICE OR AGENCY.

              The  Company  shall  maintain  in each  Place of  Payment  for the
Securities  of each series,  or any Tranche  thereof,  an office or agency where
payment of such  Securities  shall be made or  surrendered  for  payment,  where
registration  of transfer or exchange  of such  Securities  may be effected  and
where  notices and demands to or upon the Company in respect of such  Securities
and this  Indenture may be served.  The Company shall give prompt written notice
to the Trustee of the  location,  and any change in the  location,  of each such
office or agency and  prompt  notice to the  Holders  of any such  change in the
manner  specified  in  Section  106.  If at any time the  Company  shall fail to
maintain  any such  required  office or agency in respect of  Securities  of any
series,  or any Tranche  thereof,  or shall fail to furnish the Trustee with the
address  thereof,  payment  of such  Securities  may be  made,  registration  of
transfer or exchange  thereof may be effected and notices and demands in respect
thereby may be served at the Corporate Trust Office of the Trustee,  and each of
the Company  hereby  appoints the Trustee as its agent for all such  purposes in
any such event.

              The Company may also from time to time designate one or more other
offices or agencies with respect to the Securities of one or more series, or any
Tranche thereof,  for any or all of the foregoing  purposes and may from time to
time  rescind such  designations;  provided,  however,  that,  unless  otherwise
specified as  contemplated by Section 301 with respect to the Securities of such
series or Tranche, no such designation or rescission shall in any manner relieve
the Company of its  obligation to maintain an office or agency for such purposes
in each Place of Payment for such Securities in accordance with the requirements
set forth above.  The Company shall give prompt  written  notice to the Trustee,
and prompt notice to the Holders in the manner  specified in Section 106, of any
such  designation  or  rescission  and of any change in the location of any such
other office or agency.

              Anything  herein to the  contrary  notwithstanding,  any office or
agency required by this Section may be maintained at an office of the Company or
the  Guarantor or any  Affiliate of either of them,  in which event the Company,
the Guarantor or such Affiliate, as the case may be, shall perform all functions
to be performed at such office or agency.

SECTION 603.         MONEY FOR SECURITIES PAYMENTS TO BE HELD IN TRUST.

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

              Whenever the Company  shall have one or more Paying Agents for the
Securities of any series,  or any Tranche thereof,  it shall,  prior to each due
date of the  principal  of and  premium,  if any, or  interest,  if any, on such
Securities,   deposit  with  such  Paying   Agents  sums   sufficient   (without
duplication)  to pay the principal and premium or interest so becoming due, such
sum to be  held in  trust  for  the  benefit  of the  Persons  entitled  to such
principal,  premium or  interest,  and (unless such Paying Agent is the Trustee)
the  Company  shall  promptly  notify the Trustee of its action or failure so to
act.

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

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

                                      -25-
<PAGE>

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

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

              The Company may at any time pay,  or by Company  Order  direct any
Paying  Agent to pay,  to the  Trustee  all sums held in trust by the Company or
such Paying  Agent,  such sums to be held by the Trustee upon the same trusts as
those upon which such sums were held by the Company or such Paying Agent and, if
as stated in a Company Order  delivered to the Trustee,  in accordance  with the
provisions of Article  Seven;  and, upon such payment by any Paying Agent to the
Trustee,  such Paying Agent shall be released  from all further  liability  with
respect to such money.

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

SECTION 604.         CORPORATE EXISTENCE.

              Subject to the rights of the Company  under  Article  Eleven,  the
Company  shall do or cause to be done all things  necessary to preserve and keep
in full force and effect its corporate existence.

SECTION 605.         ANNUAL OFFICER'S CERTIFICATE

              Not later than ________ in each year,  commencing ________,  ____,
the Company shall deliver to the Trustee an Officer's Certificate which need not
comply with Section 102, executed by its principal executive officer,  principal
financial  officer  or  principal  accounting  officer,  as  to  such  officer's
knowledge of such obligor's  compliance  with all conditions and covenants under
this Indenture, such compliance to be determined without regard to any period of
grace or requirement of notice under this Indenture.

SECTION 606.         WAIVER OF CERTAIN COVENANTS.

              The Company may omit in any particular instance to comply with any
term, provision or condition set forth in

                     (a)    Section  607,  608 or any  covenant  or  restriction
              specified  with respect to the  Securities  of any series,  or any
              Tranche  thereof,  as  contemplated  by Section  301 or by Section
              1201(b),  if before the time for such  compliance the Holders of a
              majority  in  aggregate   principal   amount  of  the  Outstanding
              Securities  of all  series  and  Tranches  with  respect  to which
              compliance  with such  covenant or  restriction  is to be omitted,
              considered as one class,  shall,  by Act of such  Holders,  either
              waive  such   compliance  in  such  instance  or  generally  waive
              compliance with such term, provision or condition; and

                                      -26-
<PAGE>

                     (b)    Section  604 or 1101,  if  before  the time for such
              compliance  the  Holders  of a  majority  in  principal  amount of
              Securities  Outstanding under this Indenture shall, by Act of such
              Holders,   either  waive  such  compliance  in  such  instance  or
              generally waive compliance with such term, provision or condition;

but,  in either  case,  no such  waiver  shall  extend to or affect  such  term,
provision or condition except to the extent so expressly waived, and, until such
waiver shall become effective,  the obligations of the Company and the duties of
the Trustee in respect of any such term,  provision or condition shall remain in
full force and effect [; provided,  however, so long as a Trust holds Securities
of any  series,  such  Trust may not waive  compliance  or waive any  default in
compliance  by the Company  with any  covenant or other term  contained  in this
Indenture or the  Securities of such series  without the approval of the holders
of at least a majority in aggregate  liquidation  preference of the  outstanding
Preferred Securities issued by such Trust affected,  obtained as provided in the
Trust Agreement pertaining to such Trust.]

SECTION 607.         RESTRICTION ON PAYMENT OF DIVIDENDS.

              So  long  as  any  Preferred   Securities  of  any  series  remain
outstanding, if at such time (a) the Company shall be in default with respect to
its payment  obligations under the Trust Securities  Guarantee  relating to such
Preferred  Securities,  (b) there shall have occurred and be continuing an Event
of Default (whether before or after expiration of any period of grace) resulting
from a payment default hereunder or (c) the Company shall have elected to extend
any interest payment period as provided in Section 312, and any such period,  or
any  extension  thereof,  shall be  continuing,  then the Company  shall not (i)
declare or pay any dividends or distributions  on its capital stock,  other than
dividends  paid in shares of capital  stock Trust  Securities,  or (ii)  redeem,
purchase,  acquire  or make a  liquidation  payment  with  respect  to any Trust
Securities capital stock, or (iii) pay any principal, interest or premium on, or
repay,  repurchase  or redeem  any debt  securities  that are equal or junior in
right of payment to the Trust Securities.

[SECTION 608.        MAINTENANCE OF TRUST EXISTENCE.

              So long as Preferred  Securities of any series remain outstanding,
the Company shall (i) maintain direct or indirect  ownership of all interests in
the Trust which  issued such  Preferred  Securities,  other than such  Preferred
Securities,  (ii) not  voluntarily  (to the extent  permitted by law)  dissolve,
liquidate or wind up such Trust, except in connection with a distribution of the
Securities to the holders of the Preferred  Securities  in  liquidation  of such
Trust,   (iii)  remain  the  sole  Depositor  under  the  Trust  Agreement  (the
"Depositor")  of such Trust and timely  perform in all material  respects all of
its duties as Depositor of such Trust, and (iv) use reasonable  efforts to cause
such Trust to remain a business trust and otherwise  continue to be treated as a
grantor  trust for Federal  income tax  purposes,  provided  that any  permitted
successor  to the Company  under this  Indenture  may  succeed to the  Company's
duties as  Depositor of such Trust;  and  provided  further that the Company may
permit such Trust to consolidate or merge with or into another business trust or
other permitted successor under the Trust Agreement  pertaining to such Trust so
long as the Company  agrees to comply with this Section 608 with respect to such
successor business trust or other permitted successor.]

[SECTION 609.        RIGHTS OF HOLDERS OF PREFERRED SECURITIES.

              The Company agrees that,  for so long as any Preferred  Securities
remain  outstanding,  its obligations  under this Indenture will also be for the
benefit  of the  holders  from  time to time of  Preferred  Securities,  and the
Company  acknowledges  and agrees that such  holders will be entitled to enforce
this Indenture,  as third party  beneficiaries,  directly against the Company to
the same  extent as if such  holders of  Preferred  Securities  held a principal
amount of  Securities  equal to the stated  liquidation  amount of the Preferred
Securities held by such holders.]

                                      -27-
<PAGE>

                                  ARTICLE SEVEN

                           SATISFACTION AND DISCHARGE

SECTION 701.         SATISFACTION AND DISCHARGE OF SECURITIES.

              Any Security or Securities, or any portion of the principal amount
thereof,  shall be deemed to have been paid for all purposes of this  Indenture,
and the entire indebtedness of the Company in respect thereof shall be satisfied
and discharged,  if there shall have been irrevocably deposited with the Trustee
or any Paying Agent (other than the Company), in trust:

                     (a)    money in an amount which shall be sufficient, or

                     (b)    in the case of a deposit  made prior to the Maturity
              of such  Securities  or portions  thereof,  Eligible  Obligations,
              which shall not contain  provisions  permitting  the redemption or
              other prepayment thereof at the option of the issuer thereof,  the
              principal  of and the  interest  on which  when due,  without  any
              regard  to  reinvestment   thereof,  will  provide  moneys  which,
              together  with the money,  if any,  deposited  with or held by the
              Trustee or such Paying Agent, shall be sufficient, or

                     (c)    a   combination   of  (a)  or  (b)  which  shall  be
              sufficient,

to pay when due the principal of and premium,  if any, and interest  [(including
any Additional  Interest)],  if any, due and to become due on such Securities or
portions  thereof;  provided,  however,  that in the case of the  provision  for
payment or redemption of less than all the  Securities of any series or Tranche,
such  Securities or portions  thereof shall have been selected by the Trustee as
provided  herein and, in the case of a redemption,  the notice  requisite to the
validity of such redemption shall have been given or irrevocable authority shall
have  been  given by the  Company  to the  Trustee  to give such  notice,  under
arrangements  satisfactory  to the  Trustee;  and  provided,  further,  that the
Company shall have delivered to the Trustee and such Paying Agent:

                     (x)    if such  deposit  shall  have been made prior to the
              Maturity of such  Securities,  a Company  Order  stating  that the
              money and Eligible  Obligations  deposited in accordance with this
              Section shall be held in trust, as provided in Section 603;

                     (y)    if Eligible  Obligations  shall have been deposited,
              an  Opinion  of  Counsel  to  the  effect  that  such  obligations
              constitute  Eligible  Obligations  and do not  contain  provisions
              permitting  the  redemption  or other  prepayment  thereof  at the
              option of the issuer  thereof,  and an  opinion of an  independent
              public accountant of nationally  recognized standing,  selected by
              the Company,  to the effect that the other  requirements set forth
              in clause (b) and (c) above have been satisfied; and

                     (z)    if such  deposit  shall  have been made prior to the
              Maturity of such Securities,  an Officer's Certificate stating the
              Company's   intention   that,  upon  delivery  of  such  Officer's
              Certificate,  its  indebtedness  in respect of such  Securities or
              portions  thereof  will  have been  satisfied  and  discharged  as
              contemplated in this Section.

              Upon the deposit of money or  Eligible  Obligations,  or both,  in
accordance  with this Section,  together with the documents  required by clauses
(x), (y) and (z) above, the Trustee shall, upon Company Request,  acknowledge in
writing that such  Securities  or portions  thereof are deemed to have been paid
for all  purposes  of this  Indenture  and that the entire  indebtedness  of the
Company in respect  thereof has been satisfied and discharged as contemplated in
this Section. In the event that all of the conditions set forth in the preceding
paragraph  shall have been  satisfied in respect of any  Securities  or portions
thereof  except that,  for any reason,  the Officer's  Certificate  specified in
clause  (z)  (if  otherwise  required)  shall  not  have  been  delivered,  such
Securities or portions  thereof shall  nevertheless  be deemed to have been paid
for all  purposes  of this  Indenture,  and the  Holders of such  Securities  or
portions  thereof  shall  nevertheless  be no longer  entitled  to the  benefits
provided by this Indenture or of any of the

                                      -28-
<PAGE>

covenants of the Company under  Article Six (except the  covenants  contained in
Sections 602 and 603) or any other  covenants made in respect of such Securities
or portions thereof as contemplated by Section 301 or Section  1201(b),  but the
indebtedness  of the Company in respect of such  Securities or portions  thereof
shall not be deemed to have been satisfied and discharged  prior to Maturity for
any other purpose;  and, upon Company Request,  the Trustee shall acknowledge in
writing that such  Securities  or portions  thereof are deemed to have been paid
for all purposes of this Indenture.

              If payment at Stated  Maturity of less than all of the  Securities
of any series,  or any Tranche thereof,  is to be provided for in the manner and
with the  effect  provided  in this  Section,  the  Trustee  shall  select  such
Securities,  or portions of principal amount thereof, in the manner specified by
Section 403 for  selection for  redemption of less than all the  Securities of a
series or Tranche.

              In the event that  Securities  which  shall be deemed to have been
paid for  purposes of this  Indenture,  and, if such is the case,  in respect of
which the Company's  indebtedness shall have been satisfied and discharged,  all
as provided in this Section, do not mature and are not to be redeemed within the
sixty  (60) day  period  commencing  with the date of the  deposit  of moneys or
Eligible  Obligations,   as  aforesaid,   the  Company  shall,  as  promptly  as
practicable,  give a notice,  in the same manner as a notice of redemption  with
respect to such Securities, to the Holders of such Securities to the effect that
such deposit has been made and the effect thereof.

              Notwithstanding  that any Securities  shall be deemed to have been
paid for  purposes of this  Indenture,  as  aforesaid,  the  obligations  of the
Company and the Trustee in respect of such  Securities  under Sections 304, 305,
306, 404, 602, 603, 907 and 914 and this Article shall survive.

              The  Company  shall pay,  and shall  indemnify  the Trustee or any
Paying  Agent with which  Eligible  Obligations  shall  have been  deposited  as
provided in this Section  against,  any tax,  fee or other charge  imposed on or
assessed against such Eligible Obligations or the principal or interest received
in respect of such Eligible Obligations, including, but not limited to, any such
tax payable by any entity  deemed,  for tax purposes,  to have been created as a
result of such deposit.

              Anything  herein to the contrary  notwithstanding,  (a) if, at any
time after a  Security  would be deemed to have been paid for  purposes  of this
Indenture,  and,  if such is the case,  the  Company's  indebtedness  in respect
thereof would be deemed to have been satisfied and discharged,  pursuant to this
Section (without regard to the provisions of this paragraph), the Trustee or any
Paying  Agent,  as the case may be, (i) shall be required to return the money or
Eligible Obligations,  or combination thereof, deposited with it as aforesaid to
the  Company  or its  representative  under  any  applicable  Federal  or  State
bankruptcy,  insolvency  or other  similar  law, or (ii) are unable to apply any
money in accordance  with this Article with respect to any  Securities by reason
of any order or  judgment  of any  court or  governmental  authority  enjoining,
restraining  or otherwise  prohibiting  such  application,  such Security  shall
thereupon be deemed retroactively not to have been paid and any satisfaction and
discharge of the Company's  indebtedness in respect thereof shall  retroactively
be deemed not to have been effected, and such Security shall be deemed to remain
Outstanding and (b) any satisfaction and discharge of the Company's indebtedness
in  respect of any  Security  shall be  subject  to the  provisions  of the last
paragraph of Section 603.

SECTION 702.         SATISFACTION AND DISCHARGE OF INDENTURE.

              This Indenture  shall upon Company  Request cease to be of further
effect  (except as  hereinafter  expressly  provided),  and the Trustee,  at the
expense of the Company,  shall  execute such  instruments  as the Company  shall
reasonably request to evidence and acknowledge the satisfaction and discharge of
this Indenture, when:

                     (a)    no Securities remain Outstanding hereunder; and

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

                                      -29-
<PAGE>

provided,  however,  that if, in accordance  with the last  paragraph of Section
701,  any  Security,  previously  deemed to have been paid for  purposes of this
Indenture,  shall  be  deemed  retroactively  not to  have  been so  paid,  this
Indenture shall thereupon be deemed retroactively not to have been satisfied and
discharged,  as  aforesaid,  and to remain in full  force  and  effect,  and the
Company  shall  execute  and  deliver  such  instruments  as the  Trustee  shall
reasonably request to evidence and acknowledge the same.

              Notwithstanding  the  satisfaction and discharge of this Indenture
as aforesaid, the obligations of the Company and the Trustee under Sections 304,
305, 306, 404, 602, 603, 907 and 914 and this Article shall survive.

              Upon  satisfaction  and discharge of this Indenture as provided in
this  Section,  the  Trustee  shall turn over to the  Company any and all money,
securities  and other  property  then held by the Trustee for the benefit of the
Holders of the Securities (other than money and Eligible Obligations held by the
Trustee  pursuant to Section  703) and shall  execute and deliver to the Company
such  instruments  as,  in the  judgment  of the  Company,  shall be  necessary,
desirable or appropriate to effect or evidence the satisfaction and discharge of
this Indenture.

SECTION 703.         APPLICATION OF TRUST MONEY.

              Neither the Eligible  Obligations nor the money deposited pursuant
to Section 701,  nor the  principal  or interest  payments on any such  Eligible
Obligations, shall be withdrawn or used for any purpose other than, and shall be
held in trust for,  the payment of the  principal  of and  premium,  if any, and
interest,  if any, on the Securities or portions of principal  amount thereof in
respect of which such deposit was made, all subject,  however, to the provisions
of Section 603; provided, however, that any cash received from such principal or
interest  payments  on such  Eligible  Obligations,  if not then needed for such
purpose,  shall, to the extent practicable and upon Company Request and delivery
to the Trustee of the documents referred to in clause (y) in the first paragraph
of Section  701, be invested in Eligible  Obligations  of the type  described in
clause (b) in the first  paragraph  of Section 701 maturing at such times and in
such  amounts as shall be  sufficient,  together  with any other  moneys and the
proceeds of any other Eligible Obligations then held by the Trustee, to pay when
due the  principal of and  premium,  if any,  and  interest,  if any, due and to
become due on such  Securities or portions  thereof on and prior to the Maturity
thereof,  and interest earned from such  reinvestment  shall be paid over to the
Company  as  received,  free and clear of any trust,  lien or pledge  under this
Indenture (except the lien provided by Section 907); and provided, further, that
any moneys  held in  accordance  with this  Section on the  Maturity of all such
Securities in excess of the amount required to pay the principal of and premium,
if any, and interest,  if any, then due on such Securities shall be paid over to
the Company  free and clear of any trust,  lien or pledge  under this  Indenture
(except the lien provided by Section 907);  and  provided,  further,  that if an
Event of Default shall have occurred and be  continuing,  moneys to be paid over
to the  Company  pursuant  to this  Section  shall be held  until  such Event of
Default shall have been waived or cured.

                                  ARTICLE EIGHT

                           EVENTS OF DEFAULT; REMEDIES

SECTION 801.         EVENTS OF DEFAULT.

              "Event  of  Default",   wherever   used  herein  with  respect  to
Securities of any series, means any one of the following events:

                     (a)    default in the payment of any interest [,  including
              any  Additional  Interest,] on any Security of such series when it
              becomes due and payable  [(whether or not payment is prohibited by
              the subordination  provisions of Article Fifteen)] and continuance
              of such default for a period of 30 days; [provided,  however, that
              a valid extension of the interest payment period by the Company as
              contemplated in Section 312 of this Indenture shall not constitute
              a default in the payment of interest for this purpose;] or

                     (b)    default  in  the  payment  of  the  principal  of or
              premium,  if any,  on any  Security of such series when it becomes
              due and  payable  [(whether  or not payment is  prohibited  by the
              subordination provisions of Article Fifteen)]; or

                                      -30-
<PAGE>

                     (c)    default  in the  performance  of, or breach  of, any
              covenant or warranty of the Company in this Indenture  (other than
              a covenant  or warranty a default in the  performance  of which or
              breach of which is elsewhere in this  Section  specifically  dealt
              with or which has expressly been included in this Indenture solely
              for the  benefit of one or more  series of  Securities  other than
              such  series)  and  continuance  of such  default  or breach for a
              period of 90 days after there has been  given,  by  registered  or
              certified  mail, to the Company by the Trustee,  or to the Company
              and the Trustee by the Holders of at least 25% in principal amount
              of the  Outstanding  Securities of such series,  a written  notice
              specifying  such default or breach and requiring it to be remedied
              and stating  that such notice is a "Notice of Default"  hereunder,
              unless the Trustee,  or the Trustee and the Holders of a principal
              amount of  Securities  of such series not less than the  principal
              amount of Securities the Holders of which gave such notice, as the
              case may be, shall agree in writing to an extension of such period
              prior to its expiration;  provided,  however, that the Trustee, or
              the Trustee and the Holders of such principal amount of Securities
              of such series, as the case may be, shall be deemed to have agreed
              to an extension of such period if  corrective  action is initiated
              by the  Company or the  Guarantor  within such period and is being
              diligently pursued; or

                     (d)    the  entry  by a court  having  jurisdiction  in the
              premises  of (1) a decree or order for  relief in  respect  of the
              Company in an involuntary  case or proceeding under any applicable
              Federal or State bankruptcy,  insolvency,  reorganization or other
              similar  law or (2) a decree or order  adjudging  the  Company  as
              bankrupt or insolvent,  or approving as properly  filed a petition
              by  one  or  more   Persons   other  than  the   Company   seeking
              reorganization,  arrangement,  adjustment or  composition of or in
              respect of the Company under any applicable  Federal or State law,
              or  appointing  a  custodian,  receiver,   liquidator,   assignee,
              trustee, sequestrator or other similar official for the Company or
              for any substantial part of its property,  or ordering the winding
              up or liquidation of its affairs, and any such decree or order for
              relief or any such  other  decree  or order  shall  have  remained
              unstayed and in effect for a period of 90 consecutive days; or

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

                     (f)    any other Event of Default specified with respect to
              Securities of such series.

SECTION 802.         ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT.

              If an Event of Default shall have occurred and be continuing  with
respect to Securities of any series at the time Outstanding,  then in every such
case the Trustee or the Holders of not less than 25% in principal  amount of the
Outstanding  Securities of such series may declare the principal  amount (or, if
any of the  Securities of such series are Discount  Securities,  such portion of
the principal amount of such Securities as may be specified in the terms thereof
as  contemplated  by Section 301) of all of the  Securities of such series to be
due and payable immediately (provided that the payment of principal and interest
on such  Securities  shall remain  subordinated  to the extent  provided in this
Indenture),  by a notice in writing to the Company  (and to the Trustee if given
by Holders),  and upon receipt by the Company of notice of such declaration such
principal amount (or specified amount) shall become immediately due and payable;
provided,  however,  that if an Event of  Default  shall  have  occurred  and be
continuing  with respect to more than one series of  Securities,  the Trustee or
the  Holders  of  not  less  than  25%  in  aggregate  principal  amount  of the
Outstanding  Securities of all such series,  considered  as one class,  may make
such

                                      -31-
<PAGE>

declaration of acceleration, and not the Holders of the Securities of any one of
such  series  (provided  that the  payment of  principal  and  interest  on such
Securities shall remain subordinated to the extent provided in this Indenture).

              At any time after such a declaration of acceleration  with respect
to Securities of any series shall have been made and before a judgment or decree
for  payment  of the money  due  shall  have been  obtained  by the  Trustee  as
hereinafter in this Article  provided,  such  declaration  and its  consequences
shall, without further act, be deemed to have been rescinded and annulled, if

                     (a)    the Company  shall have paid or  deposited  with the
              Trustee a sum sufficient to pay

                            (1)    all overdue  interest  [including  Additional
                     Interest],  if any, on all  Securities  of such series then
                     Outstanding;

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

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

                            (4)    all amounts due to the Trustee  under Section
                     907;

              and

                     (b)    all Events of Default with respect to  Securities of
              such  series,  other  than the  non-payment  of the  principal  of
              Securities  of such  series  which shall have become due solely by
              such declaration of acceleration,  shall have been cured or waived
              as provided in Section 813.

No such  rescission  shall affect any subsequent  Event of Default or impair any
right consequent thereon.

SECTION 803.         COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT
                     BY TRUSTEE.

              If an Event of Default  described  in clause (a) or (b) of Section
801 shall have occurred,  the Company shall, upon demand of the Trustee,  pay to
it, for the benefit of the Holders of the  Securities of the series with respect
to which such Event of Default  shall have  occurred,  the whole amount then due
and payable on such Securities for principal and premium,  if any, and interest,
if any, and, to the extent permitted by law, interest on premium, if any, and on
any overdue principal and interest,  at the rate or rates prescribed therefor in
such  Securities,  and, in addition  thereto,  such  further  amount as shall be
sufficient to cover any amounts due to the Trustee under Section 907.

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

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

                                      -32-
<PAGE>

SECTION 804.        TRUSTEE MAY FILE PROOFS OF CLAIM.

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

                     (a)    to file and prove a claim  for the  whole  amount of
              principal, premium, if any, and interest, if any, owing and unpaid
              in respect  of the  Securities  and to file such  other  papers or
              documents  as may be  necessary  or advisable in order to have the
              claims of the Trustee  (including any claim for amounts due to the
              Trustee  under  Section  907) and of the  Holders  allowed in such
              judicial proceeding, and

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

and any custodian,  receiver,  assignee,  trustee,  liquidator,  sequestrator or
other similar official in any such judicial  proceeding is hereby  authorized by
each  Holder to make such  payments  to the  Trustee  and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders, to
pay to the Trustee any amounts due it under Section 907.

              Nothing herein  contained shall be deemed to authorize the Trustee
to  authorize  or consent to or accept or adopt on behalf of any Holder any plan
of  reorganization,   arrangement,   adjustment  or  composition  affecting  the
Securities  or the rights of any Holder  thereof or to authorize  the Trustee to
vote in  respect of the claim of any  Holder in any such  proceeding;  provided,
however,  that the  Trustee  may,  on  behalf of the  Holders,  be a member of a
creditors' or similar other committee.

SECTION 805.        TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES.

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

SECTION 806.        APPLICATION OF MONEY COLLECTED.

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

              FIRST: To the payment of all amounts due the Trustee under Section
       907;

              SECOND:  Subject  to the  provisions  of Article  Fifteen,  to the
       payment  of the  amounts  then due and  unpaid  upon the  Securities  for
       principal of and premium,  if any,  and  interest  [including  Additional
       Interest],  if any,  in respect of which or for the benefit of which such
       money has been collected,  ratably, without preference or priority of any
       kind,  according  to the amounts due and payable on such  Securities  for
       principal, premium, if any, and interest, if any, respectively;

                                      -33-
<PAGE>

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

SECTION 807.         LIMITATION ON SUITS.

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

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

                     (b)    the Holders of 25% in aggregate  principal amount of
              the  Outstanding  Securities  of all series in respect of which an
              Event of Default shall have occurred and be continuing, considered
              as one class,  shall have made  written  request to the Trustee to
              institute  proceedings  in respect of such Event of Default in its
              own name as Trustee hereunder;

                     (c)    such  Holder or Holders  shall  have  offered to the
              Trustee  reasonable  indemnity  against  the costs,  expenses  and
              liabilities to be incurred in compliance with such request;

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

                     (e)    no direction  inconsistent with such written request
              shall have been given to the Trustee  during such 60-day period by
              the Holders of a majority  in  aggregate  principal  amount of the
              Outstanding  Securities of all series in respect of which an Event
              of Default  shall have occurred and be  continuing,  considered as
              one class;

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

SECTION 808.         UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL,
                     PREMIUM AND INTEREST.

              Notwithstanding any other provision in this Indenture,  the Holder
of any Security shall have the right,  which is absolute and  unconditional,  to
receive payment of the principal of and premium, if any, and (subject to Section
307  [and  312])  interest  [including  Additional  Interest],  if any,  on such
Security on the Stated Maturity or Maturities expressed in such Security (or, in
the case of redemption,  on the  Redemption  Date) and to institute suit for the
enforcement of any such payment,  and such rights shall not be impaired  without
the consent of such Holder. [In addition,  in the case of Securities of a series
held by a Trust, a holder of Preferred Trust Securities may directly institute a
proceeding for enforcement of payment to such holder of principal of or interest
on the Securities  having a principal amount equal to the aggregate  liquidation
preference  amount of the Preferred Trust  Securities of such holder on or after
the due dates specified or provided for in the Securities.

SECTION 809.         RESTORATION OF RIGHTS AND REMEDIES.

                  If the Trustee or any Holder has  instituted any proceeding to
enforce any right or remedy under this Indenture and such proceeding  shall have
been  discontinued  or abandoned for any reason,  or shall have been  determined
adversely to the Trustee or to such Holder, then and in every such case, subject
to any  determination  in such  proceeding,  the  Company,  the Trustee and such
Holder shall be restored  severally and  respectively to their former  positions
hereunder and  thereafter all rights and remedies of the Trustee and such Holder
shall continue as though no such proceeding had been instituted.

                                      -34-
<PAGE>

SECTION 810.         RIGHTS AND REMEDIES CUMULATIVE.

              Except as otherwise provided in the last paragraph of Section 306,
no right or remedy  herein  conferred  upon or reserved to the Trustee or to the
Holders is intended  to be  exclusive  of any other  right or remedy,  and every
right and remedy shall,  to the extent  permitted by law, be  cumulative  and in
addition to every other right and remedy  given  hereunder  or now or  hereafter
existing at law or in equity or  otherwise.  The  assertion or employment of any
right or remedy  hereunder,  or  otherwise,  shall not  prevent  the  concurrent
assertion or employment of any other appropriate right or remedy.

SECTION 811.         DELAY OR OMISSION NOT WAIVER.

              No delay or  omission  of the Trustee or of any Holder to exercise
any right or remedy  accruing  upon any Event of Default  shall  impair any such
right or  remedy  or  constitute  a waiver of any such  Event of  Default  or an
acquiescence therein.  Every right and remedy given by this Article or by law to
the Trustee or to the Holders may be exercised  from time to time,  and as often
as may be deemed  expedient,  by the Trustee or by the Holders,  as the case may
be.

SECTION 812.         CONTROL BY HOLDERS OF SECURITIES.

              If an Event of Default  shall have  occurred and be  continuing in
respect of a series of Securities, the Holders of a majority in principal amount
of the Outstanding  Securities of such series shall have the right to direct the
time,  method and place of conducting any proceeding for any remedy available to
the Trustee,  or exercising  any trust or power  conferred on the Trustee,  with
respect to the Securities of such series; provided, however, that if an Event of
Default  shall have  occurred  and be  continuing  with respect to more than one
series of Securities, the Holders of a majority in aggregate principal amount of
the Outstanding  Securities of all such series,  considered as one class,  shall
have the right to make such direction,  and not the Holders of the Securities of
any one of such series; and provided, further, that

                     (a)    such  direction  shall not be in  conflict  with any
              rule of law or with this  Indenture,  and could  not  involve  the
              Trustee in personal  liability in  circumstances  where  indemnity
              would not, in the Trustee's sole discretion, be adequate, and

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

SECTION 813.         WAIVER OF PAST DEFAULTS.

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

                     (a)    in the payment of the  principal  of or premium,  if
              any, or interest [including Additional  Interest],  if any, on any
              Security of such series, or

                     (b)    in respect of a covenant or  provision  hereof which
              under  Section  1202  cannot be  modified  or amended  without the
              consent of the Holder of each Outstanding  Security of such series
              affected.

; provided, however, that so long as a Trust holds the Securities of any series,
such  Trust may not waive any past  default  without  the  consent of at least a
majority  in  aggregate  liquidation  preference  of the  outstanding  Preferred
Securities  issued by such Trust  affected,  obtained  as  provided in the Trust
Agreement  pertaining to such Trust. Any such waiver by holders of a majority in
aggregate  liquidation  preference of outstanding Preferred Securities issued by
any such  Trust  shall be deemed to be on behalf  of all  holders  of  Preferred
Securities issued by any such Trust.]

                                      -35-
<PAGE>

              Upon any such waiver,  such default shall cease to exist,  and any
and all Events of Default arising  therefrom shall be deemed to have been cured,
for every  purpose of this  Indenture;  but no such waiver  shall  extend to any
subsequent or other default or impair any right consequent thereon.

SECTION 814.         UNDERTAKING FOR COSTS.

              The  Company  and  the  Trustee  agree,  and  each  Holder  by his
acceptance  thereof  shall be deemed to have  agreed,  that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under
this  Indenture,  or in any suit  against  the  Trustee  for any  action  taken,
suffered or omitted by it as Trustee,  the filing by any party  litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may in
its discretion assess reasonable costs,  including  reasonable  attorneys' fees,
against  any party  litigant  in such suit,  having due regard to the merits and
good faith of the claims or defenses made by such party  litigant,  in each case
in the manner,  to the extent,  and  subject to the  exceptions  provided in the
Trust Indenture Act; provided,  that the provisions of this Section shall not be
deemed to authorize any court to require such an  undertaking or to make such an
assessment in any suit instituted by the Company.

SECTION 815.         WAIVER OF USURY, STAY OR EXTENSION LAWS.

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

                                  ARTICLE NINE

                                   THE TRUSTEE

SECTION 901.         CERTAIN DUTIES AND RESPONSIBILITIES.

              (a)    Except during the  continuance  of an Event of Default with
respect to Securities of any series,

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

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

              (b)    In case an Event of Default with respect to  Securities  of
any series shall have occurred and be  continuing,  the Trustee shall  exercise,
with respect to Securities of such series,  such of the rights and powers vested
in it by this  Indenture,  and use the same  degree  of care and  skill in their
exercise,  as a prudent man would exercise or use under the circumstances in the
conduct of his own affairs.

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

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

                                      -36-
<PAGE>

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

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

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

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

SECTION 902.         NOTICE OF DEFAULTS.

              The  Trustee  shall  give  notice of any  default  hereunder  with
respect to the  Securities  of any series to the Holders of  Securities  of such
series in the manner and to the extent  required to do so by the Trust Indenture
Act,  unless such default  shall have been cured or waived;  provided,  however,
that in the case of any default of the character specified in Section 801(c), no
such  notice  to  Holders  shall be given  until  at  least  90 days  after  the
occurrence  thereof.  For the purpose of this Section,  the term "default" means
any event which is, or after notice or lapse of time, or both, would become,  an
Event of Default with respect to the Securities of such series.

SECTION 903.         CERTAIN RIGHTS OF TRUSTEE.

              Subject to the  provisions  of Section  901 and to the  applicable
provisions of the Trust Indenture Act:

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

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

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

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

                     (e)    the Trustee shall be under no obligation to exercise
              any of the rights or powers vested in it by this  Indenture at the
              request or  direction  of any Holder  pursuant to this  Indenture,
              unless such Holder  shall have  offered to the Trustee  reasonable
              security or indemnity against the

                                      -37-
<PAGE>

              costs, expenses and liabilities which might be incurred by it in
              compliance with such request or direction;

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

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

                     (h)    the Trustee  shall not be charged with  knowledge of
              any Event of Default with respect to the  Securities of any series
              for which it is acting as Trustee  unless either (1) a Responsible
              Officer  of  the  Trustee   assigned  to  the  Corporate   Trustee
              Administration  Department and agency group of the Trustee (or any
              successor division or department of the Trustee) shall have actual
              knowledge  of the Event of Default or (2)  written  notice of such
              Event of  Default  shall  have been  given to the  Trustee  by the
              Company or any other obligor on such Securities,  or by any Holder
              of such Securities.

SECTION 904.         NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES.

              The  recitals  contained  herein  and in the  Securities  endorsed
thereon (except the Trustee's  certificates of authentication) shall be taken as
the  statements of the Company,  as the case may be, and neither the Trustee nor
any  Authenticating  Agent assumes  responsibility  for their  correctness.  The
Trustee  makes no  representations  as to the  validity or  sufficiency  of this
Indenture  or of the  Securities  endorsed  thereon.  Neither  Trustee  nor  any
Authenticating  Agent shall be  accountable  for the use or  application  by the
Company of Securities or the proceeds thereof.

SECTION 905.         MAY HOLD SECURITIES.

              Each of the Trustee,  any Authenticating  Agent, any Paying Agent,
any Security  Registrar or any other agent of the Company,  in its individual or
any other  capacity,  may  become the owner or  pledgee  of  Securities  [and/or
Preferred  Securities]  and, subject to Sections 908 and 913, may otherwise deal
with the Company  with the same rights it would have if it were not the Trustee,
Authenticating Agent, Paying Agent, Security Registrar or such other agent.

SECTION 906.         MONEY HELD IN TRUST.

              Money  held  by  the  Trustee  in  trust  hereunder  need  not  be
segregated  from other funds,  except to the extent required by law. The Trustee
shall be under no liability for interest on or investment of any money  received
by it hereunder  except as expressly  provided herein or otherwise  agreed with,
and for the sole benefit of, the Company.

SECTION 907.         COMPENSATION AND REIMBURSEMENT.

              The Company agrees

                                      -38-
<PAGE>

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

                     (b)    except as otherwise  expressly  provided herein,  to
              reimburse  the  Trustee  upon  its  request  for  all   reasonable
              expenses,  disbursements and advances  reasonably incurred or made
              by the Trustee in accordance  with any provision of this Indenture
              (including  the  reasonable  compensation  and  the  expenses  and
              disbursements of its agents and counsel), except any such expense,
              disbursement  or advance as may be attributable to its negligence,
              willful misconduct or bad faith; and

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

              As security for the  performance of the obligations of the Company
and the Guarantor under this Section, the Trustee shall have a lien prior to the
Securities upon all property and funds held or collected by the Trustee as such,
other than  property  and funds held in trust under  Section 703 (except  moneys
payable to the Company as provided in Section 703).

SECTION 908.         DISQUALIFICATION; CONFLICTING INTERESTS.

              If the  Trustee  shall have or acquire  any  conflicting  interest
within the meaning of the Trust  Indenture  Act, it shall either  eliminate such
conflicting interest or resign to the extent, in the manner and with the effect,
and  subject to the  conditions,  provided in the Trust  Indenture  Act and this
Indenture.  For purposes of Section  310(b)(1) of the Trust Indenture Act and to
the extent permitted thereby, the Trustee, in its capacity as trustee in respect
of the  Securities  of any  series,  shall not be  deemed to have a  conflicting
interest  arising from its capacity as trustee in respect of (i) the  Securities
of any other series, (ii) the Trust Agreement and the Trust Securities Guarantee
Agreement pertaining to each Trust [OTHERS].

SECTION 909.         CORPORATE TRUSTEE REQUIRED; ELIGIBILITY.

              There shall at all times be a Trustee hereunder which shall be

              (a)    a corporation  organized and doing  business under the laws
of the United States of America,  any State thereof or the District of Columbia,
authorized under such laws to exercise corporate trust powers, having a combined
capital  and  surplus of at least  $50,000,000  and  subject to  supervision  or
examination by Federal, State or District of Columbia authority, or

              (b)    if and to the extent  permitted by the  Commission by rule,
regulation or order upon  application,  a corporation or other Person  organized
and doing business under the laws of a foreign government, authorized under such
laws to exercise  corporate trust powers,  having a combined capital and surplus
of at least  $50,000,000  or the Dollar  equivalent  of the  applicable  foreign
currency and subject to  supervision or examination by authority of such foreign
government  or a  political  subdivision  thereof  substantially  equivalent  to
supervision or examination applicable to United States institutional trustees

and, in either case,  qualified  and  eligible  under this Article and the Trust
Indenture  Act. If such  corporation  publishes  reports of  condition  at least
annually,  pursuant  to  law or to  the  requirements  of  such  supervising  or
examining authority, then for the purposes of this Section, the combined capital
and surplus of such  corporation  shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published.  If at
any  time  the  Trustee  shall  cease  to be  eligible  in  accordance  with the
provisions  of this  Section  and the  Trust  Indenture  Act,  it  shall  resign
immediately  in the  manner and with the effect  hereinafter  specified  in this
Article.

                                      -39-
<PAGE>

SECTION 910.         RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.

              (a)    No resignation or removal of the Trustee and no appointment
of a successor Trustee pursuant to this Article shall become effective until the
acceptance  of  appointment  by the  successor  Trustee in  accordance  with the
applicable requirements of Section 911.

              (b)    The  Trustee  may  resign at any time with  respect  to the
Securities  of one or more  series  by  giving  written  notice  thereof  to the
Company.  If the  instrument of acceptance  by a successor  Trustee  required by
Section 911 shall not have been  delivered  to the Trustee  within 30 days after
the giving of such notice of resignation, the resigning Trustee may petition any
court of competent  jurisdiction for the appointment of a successor Trustee with
respect to the Securities of such series.

              (c)    The Trustee may be removed at any time with  respect to the
Securities of any series by Act of the Holders of a majority in principal amount
of the  Outstanding  Securities  of such series  delivered to the  Trustee,  the
Company [; provided that so long as any Preferred Securities remain outstanding,
the Trust which issued such  Preferred  Securities  shall not execute any Act to
remove the Trustee without the consent of the holders of a majority in aggregate
liquidation preference of Preferred Securities issued by such Trust outstanding,
obtained as provided in the Trust Agreement pertaining to such Trust.]

              (d)    If at any time:

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

                            (2)    the Trustee shall cease to be eligible  under
                     Section 909 or Section  310(a) of the Trust  Indenture  Act
                     and shall fail to resign after written request  therefor by
                     the Company or by any such Holder, or

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

then,  in any such case,  (x) the  Company by Board  Resolutions  may remove the
Trustee with respect to all Securities or (y) subject to Section 814, any Holder
who has been a bona  fide  Holder  for at least  six  months  may,  on behalf of
himself  and all others  similarly  situated,  petition  any court of  competent
jurisdiction  for the removal of the Trustee with respect to all  Securities and
the appointment of a successor Trustee or Trustees.

              (e)    If the Trustee shall resign, be removed or become incapable
of acting,  or if a vacancy  shall  occur in the office of Trustee for any cause
(other than as  contemplated  by clause (y) in subsection  (d) or this Section),
with  respect to the  Securities  of one or more series,  the Company,  by Board
Resolutions, shall promptly appoint a successor Trustee or Trustees with respect
to the  Securities  of that or those series (it being  understood  that any such
successor Trustee may be appointed with respect to the Securities of one or more
or all of such series and that at any time  (subject to Section 915) there shall
be only one Trustee with respect to the Securities of any particular series) and
shall comply with the  applicable  requirements  of Section 911. If,  within one
year after such resignation,  removal or incapability, or the occurrence of such
vacancy,  a successor Trustee with respect to the Securities of any series shall
be  appointed  by Act of the  Holders of a majority in  principal  amount of the
Outstanding  Securities of such series delivered to the Company and the retiring
Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance
of such  appointment in accordance  with the applicable  requirements of Section
911, become the successor  Trustee with respect to the Securities of such series
and to that extent supersede the successor Trustee appointed by the Company.  If
no successor  Trustee with  respect to the  Securities  of any series shall have
been so appointed by the Company or the Holders and accepted  appointment in the
manner  required by Section 911, any Holder who has been a bona fide Holder of a
Security of such series for at least six

                                      -40-
<PAGE>

months may, on behalf of itself and all others similarly situated,  petition any
court of competent  jurisdiction for the appointment of a successor Trustee with
respect to the Securities of such series.

              (f)    So long as no event  which is, or after  notice or lapse of
time,  or both,  would  become,  an Event of Default  shall have occurred and be
continuing, and except with respect to a Trustee appointed by Act of the Holders
of a majority in  principal  amount of the  Outstanding  Securities  pursuant to
subsection  (e) of this  Section,  if the Company  shall have  delivered  to the
Trustee (i) Board  Resolutions  of the Company  appointing a successor  Trustee,
effective as of a date specified  therein,  and (ii) an instrument of acceptance
of such  appointment,  effective as of such date, by such  successor  Trustee in
accordance  with Section 911,  the Trustee  shall be deemed to have  resigned as
contemplated in subsection (b) of this Section,  the successor  Trustee shall be
deemed to have been appointed by the Company  pursuant to subsection (e) of this
Section  and  such  appointment  shall  be  deemed  to  have  been  accepted  as
contemplated  in Section 911, all as of such date,  and all other  provisions of
this  Section  and  Section  911  shall  be  applicable  to  such   resignation,
appointment  and  acceptance  except  to  the  extent   inconsistent  with  this
subsection (f).

              (g)    The Company shall give notice of each  resignation and each
removal of the Trustee  with  respect to the  Securities  of any series and each
appointment of a successor  Trustee with respect to the Securities of any series
to all Holders of  Securities  of such series in the manner  provided in Section
106. Each notice shall include the name of the successor Trustee with respect to
the Securities of such series and the address of its Corporate Trust Office.

SECTION 911.         ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.

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

              (b)    In case of the appointment hereunder of a successor Trustee
with respect to the Securities of one or more (but not all) series, the Company,
the retiring  Trustee and each successor  Trustee with respect to the Securities
of one or more series shall execute and deliver an indenture supplemental hereto
wherein each successor Trustee shall accept such appointment and which (1) shall
contain  such  provisions  as shall be  necessary  or  desirable to transfer and
confirm to, and to vest in,  each  successor  Trustee  all the  rights,  powers,
trusts and duties of the retiring Trustee with respect to the Securities of that
or those series to which the appointment of such successor Trustee relates,  (2)
if the retiring  Trustee is not retiring with respect to all  Securities,  shall
contain  such  provisions  as shall be deemed  necessary or desirable to confirm
that all the rights,  powers,  trusts and duties of the  retiring  Trustee  with
respect  to the  Securities  of that or those  series as to which  the  retiring
Trustee is not retiring shall continue to be vested in the retiring  Trustee and
(3) shall add to or change any of the  provisions of this  Indenture as shall be
necessary  to  provide  for or  facilitate  the  administration  of  the  trusts
hereunder by more than one Trustee,  it being  understood that nothing herein or
in such supplemental indenture shall constitute such Trustees co-trustees of the
same  trust and that each such  Trustee  shall be  trustee  of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder  administered by
any other such Trustee; and upon the execution and delivery of such supplemental
indenture  the  resignation  or removal of the  retiring  Trustee  shall  become
effective  to the  extent  provided  therein  and each such  successor  Trustee,
without any further act,  deed or  conveyance,  shall become vested with all the
rights,  powers,  trusts and duties of the retiring  Trustee with respect to the
Securities of that or those series to which the  appointment  of such  successor
Trustee relates;  but, on request of the Company or any successor Trustee,  such
retiring  Trustee,  upon  payment  of all sums owed to it,  shall  duly  assign,
transfer  and deliver to such  successor  Trustee all property and money held by
such retiring Trustee  hereunder with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates.

                                      -41-
<PAGE>

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

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

SECTION 912.         MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION
                     TO BUSINESS.

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

SECTION 913.         PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.

              If the Trustee shall be or become a creditor of the Company or any
other  obligor  upon the  Securities  (other  than by reason  of a  relationship
described in Section  311(b) of the Trust  Indenture  Act), the Trustee shall be
subject  to any  and  all  applicable  provisions  of the  Trust  Indenture  Act
regarding the  collection of claims  against the Company,  the Guarantor or such
other obligor. For purposes of Section 311(b) of the Trust Indenture Act (a) the
term "cash  transaction" shall have the meaning provided in Rule 11b-4 under the
Trust  Indenture Act, and (b) the term  "self-liquidating  paper" shall have the
meaning provided in Rule 11b-6 under the Trust Indenture Act.

SECTION 914.         APPOINTMENT OF AUTHENTICATING AGENT.

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

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

                                      -42-
<PAGE>

              An  Authenticating  Agent may resign at any time by giving written
notice  thereof to the  Trustee,  and the  Company.  The Trustee may at any time
terminate the agency of an Authenticating Agent by giving written notice thereof
to such  Authenticating  Agent and the Company.  Upon receiving such a notice of
resignation  or  upon  such  a  termination,   or  in  case  at  any  time  such
Authenticating  Agent  shall  cease  to  be  eligible  in  accordance  with  the
provisions of this Section,  the Trustee may appoint a successor  Authenticating
Agent which shall be  acceptable to the Company.  Any  successor  Authenticating
Agent upon acceptance of its appointment  hereunder shall become vested with all
the rights, powers and duties of its predecessor hereunder,  with like effect as
if originally  named as an  Authenticating  Agent.  No successor  Authenticating
Agent shall be appointed unless eligible under the provisions of this Section.

              Unless  appointed  at the request of the  Company  pursuant to the
last  paragraph  of  this  Section  914,  the  Trustee  agrees  to pay  to  each
Authenticating Agent from time to time reasonable  compensation for its services
under this Section,  and the Trustee shall be entitled to be reimbursed for such
payments, in accordance with and subject to the provisions of Section 907.

              The provisions of Sections 308, 904 and 905 shall be applicable to
each Authenticating Agent.

              If an  appointment  with respect to the  Securities of one or more
series,  or any Tranche  thereof,  shall be made pursuant to this  Section,  the
Securities of such series or Tranche may have endorsed  thereon,  in addition to
the  Trustee's  certificate  of  authentication,  an  alternate  certificate  of
authentication substantially in the following form:

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

                                        -------------------------------------
                                        As Trustee

                                       By
                                          -----------------------------------
                                          As Authenticating Agent

                                       By
                                          -----------------------------------
                                          Authorized Officer

              If all of the Securities of a series may not be originally  issued
at  one  time,   and  if  the  Trustee  does  not  have  an  office  capable  of
authenticating  Securities upon original  issuance located in a Place of Payment
where the Company wishes to have  Securities of such series  authenticated  upon
original issuance, the Trustee, if so requested by the Company in writing (which
writing  need not comply  with  Section  102 and need not be  accompanied  by an
Opinion of  Counsel),  shall  appoint,  in  accordance  with this Section and in
accordance  with such  procedures  as shall be  acceptable  to the  Trustee,  an
Authenticating  Agent having an office in a Place of Payment  designated  by the
Company with respect to such series of Securities.

SECTION 915.         CO-TRUSTEE AND SEPARATE TRUSTEES.

              At any  time or  times,  for the  purpose  of  meeting  the  legal
requirements of any applicable  jurisdiction,  the Company and the Trustee shall
have power to appoint,  and,  upon the written  request of the Trustee or of the
Holders of at least 33% in principal amount of the Securities then  Outstanding,
the Company  shall for such purpose join with the Trustee in the  execution  and
delivery of all instruments and agreements  necessary or proper to appoint,  one
or more Persons  approved by the Trustee  either to act as  co-trustee,  jointly
with the Trustee, or to act as separate trustee, in either case with such powers
as may be provided in the instrument of appointment,  and to vest in such Person
or Persons,  in the capacity  aforesaid,  any  property,  title,  right or power
deemed necessary or desirable,  subject to the other provisions of this Section.
If the Company does not join in such appointment within 15 days

                                      -43-
<PAGE>

after the  receipt by it of a request so to do, or if an Event of Default  shall
have occurred and be continuing, the Trustee alone shall have power to make such
appointment.

              Should any written  instrument or instruments  from the Company be
required by any  co-trustee  or separate  trustee to more fully  confirm to such
co-trustee or separate trustee such property, title, right or power, any and all
such instruments shall, on request,  be executed,  acknowledged and delivered by
the Company, as the case may be.

              Every   co-trustee  or  separate  trustee  shall,  to  the  extent
permitted by law, but to such extent only, be appointed subject to the following
conditions:

              (a)    the Securities  shall be authenticated  and delivered,  and
all rights,  powers,  duties and obligations hereunder in respect of the custody
of  securities,  cash and other  personal  property  held by, or  required to be
deposited or pledged with, the Trustee hereunder,  shall be exercised solely, by
the Trustee;

              (b)    the rights, powers, duties and obligations hereby conferred
or  imposed  upon  the  Trustee  in  respect  of any  property  covered  by such
appointment shall be conferred or imposed upon and exercised or performed either
by the  Trustee  or by the  Trustee  and such  co-trustee  or  separate  trustee
jointly,  as shall be provided in the instrument  appointing  such co-trustee or
separate trustee, except to the extent that under any law of any jurisdiction in
which any particular act is to be performed, the Trustee shall be incompetent or
unqualified to perform such act, in which event such rights,  powers, duties and
obligations  shall be exercised  and  performed by such  co-trustee  or separate
trustee.

              (c)    the  Trustee  at any  time,  by an  instrument  in  writing
executed by it, with the concurrence of the Company,  may accept the resignation
of or remove any co-trustee or separate  trustee  appointed  under this Section,
and, if an Event of Default shall have occurred and be  continuing,  the Trustee
shall have power to accept the resignation of, or remove, any such co-trustee or
separate  trustee  without  the  concurrence  of the  Company.  Upon the written
request of the Trustee, the Company shall join with the Trustee in the execution
and delivery of all instruments and agreements necessary or proper to effectuate
such  resignation or removal.  A successor to any co-trustee or separate trustee
so resigned or removed may be appointed in the manner provided in this Section;

              (d)    no  co-trustee  or  separate  trustee  hereunder  shall  be
personally liable by reason of any act or omission of the Trustee,  or any other
such trustee hereunder, and the Trustee shall not be personally liable by reason
of any act or omission of any such co-trustee or separate trustee; and

              (e)    any Act of Holders delivered to the Trustee shall be deemed
to have been delivered to each such co-trustee and separate trustee.

                                   ARTICLE TEN

                HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

SECTION 1001.        LISTS OF HOLDERS.

              Semiannually, not later than June 30 and December 31 in each year,
and at such other times as the Trustee may request in writing, the Company shall
furnish or cause to be furnished to the Trustee  information as to the names and
addresses of the Holders,  and the Trustee shall preserve such  information  and
similar  information  received  by it in any other  capacity  and  afford to the
Holders access to  information  so preserved by it, all to such extent,  if any,
and in such manner as shall be required by the Trust  Indenture  Act;  provided,
however, that no such list need be furnished so long as the Trustee shall be the
Security Registrar.

SECTION 1002.        REPORTS BY TRUSTEE AND COMPANY.

              The Trustee shall transmit to Holders such reports  concerning the
Trustee and its actions under this Indenture as may be required  pursuant to the
Trust Indenture Act at the time and in the manner provided

                                      -44-
<PAGE>

pursuant  thereto.  Reports so required to be transmitted at stated intervals of
not more than 12 months shall be  transmitted  no later than November 15 in each
calendar  year with  respect  to the  12-month  period  ending on the  preceding
September 15 commencing September 15, 200_. A copy of each such report shall, at
the time of such  transmission  to Holders,  be filed by the  Trustee  with each
stock  exchange upon which any  Securities  are listed,  with the Commission and
with the Company.  The Company will notify the Trustee when any  Securities  are
listed on any stock exchange.

              The Company shall file with the Trustee  (within  thirty (30) days
after filing with the  Commission  in the case of reports  that  pursuant to the
Trust  Indenture  Act must be filed with the  Commission  and  furnished  to the
Trustee) and transmit to the Holders, such other information,  reports and other
documents, if any, at such times and in such manner, as shall be required by the
Trust Indenture Act.

                                 ARTICLE ELEVEN

              CONSOLIDATION, MERGER, CONVEYANCE, OR OTHER TRANSFER

SECTION 1101.        COMPANY MAY CONSOLIDATE, ETC.,
                         ONLY ON CERTAIN TERMS.

              The  Company  shall not  consolidate  with or merge into any other
Person or convey,  transfer or lease its properties and assets  substantially as
an entirety to any Person, unless

                     (a)    the  Person  formed  by such  consolidation  or into
              which the  Company,  is merged or the  Person  which  acquires  by
              conveyance or transfer, or which leases, the properties and assets
              of the  Company,  substantially  as an entirety  shall be a Person
              organized and existing  under the laws of the United  States,  any
              State  thereof or the  District of Columbia,  and shall  expressly
              assume,  by  an  indenture   supplemental  hereto,   executed  and
              delivered to the Trustee, in form satisfactory to the Trustee, the
              due and punctual payment of the principal of and premium,  if any,
              and  interest,  if  any,  on all  Outstanding  Securities  and the
              performance of every covenant of this Indenture on the part of the
              Company, to be performed or observed;

                     (b)    immediately after giving effect to such transaction,
              no Event of Default,  and no event which, after notice or lapse of
              time or  both,  would  become  an  Event of  Default,  shall  have
              occurred and be continuing; and

                     (c)    the Company,  shall have delivered to the Trustee an
              Officer's Certificate and an Opinion of Counsel, each stating that
              such consolidation,  merger, conveyance or other transfer or lease
              and such indenture  supplemental hereto complies with this Article
              and that all conditions  precedent herein provided for relating to
              such transactions have been complied with.

SECTION 1102.        SUCCESSOR PERSON SUBSTITUTED.

              Upon  any  consolidation  by the  Company  with or  merger  by the
Company into any other Person or any  conveyance  or other  transfer or lease of
the  properties  and  assets of the  Company  substantially  as an  entirety  in
accordance with Section 1101, the successor Person formed by such  consolidation
or into which the Company, is merged or the Person to which such conveyance,  or
other  transfer or lease is made shall succeed to, and be  substituted  for, and
may exercise  every right and power of, the Company,  under this  Indenture with
the same  effect as if such  successor  Person  had been  named as the  Company,
herein,  and thereafter,  except in the case of a lease, the predecessor  Person
shall be relieved of all  obligations and covenants under this Indenture and the
Securities Outstanding hereunder.

SECTION 1103.        LIMITATION.

              Nothing in this Indenture shall be deemed to prevent or restrict:

                                      -45-
<PAGE>

                     (a)    any  consolidation  or merger after the consummation
              of which the Company would be the surviving or resulting entity,

                     (b)    any conveyance or other  transfer,  or lease, of any
              part of the  properties of the Company  which does not  constitute
              the entirety, or substantially the entirety, thereof or

                     (c)    the  approval  by the  Company of, or the consent by
              the Company to, any consolidation or merger to which any direct or
              indirect subsidiary or affiliate of the Company, may be a party or
              any  conveyance,  transfer  or  lease by any  such  subsidiary  or
              affiliate of any of its assets.

                                 ARTICLE TWELVE

                             SUPPLEMENTAL INDENTURES

SECTION 1201.        SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS.

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

                     (a)    to evidence the  succession of another Person to the
              Company and the  assumption by any such successor of the covenants
              of the  Company  herein and in the  Securities  all as provided in
              Article Eleven; or

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

                     (c)    to add any additional Events of Default with respect
              to all or any series of Securities  Outstanding  hereunder (and if
              such  additional  Events of Default  are to be for the  benefit of
              less than all series of Securities,  stating that such  additional
              Events of Default  are  expressly  being  included  solely for the
              benefit of such series); or

                     (d)    to  change  or  eliminate   any  provision  of  this
              Indenture or to add any new provision to this Indenture; provided,
              however,  that if  such  change,  elimination  or  addition  shall
              adversely affect the interests of the Holders of Securities of any
              series or  Tranche  Outstanding  on the date of such  supplemental
              indenture in any material  respect,  such change,  elimination  or
              addition  shall  become  effective  with respect to such series or
              Tranche only pursuant to the  provisions of Section 1202 hereof or
              when no Security of such series or Tranche remains Outstanding; or

                     (e)    to provide collateral security for the Securities of
              any series; or

                     (f)    to establish  the form or terms of Securities of any
              series or Tranche or any  Guarantees as  contemplated  by Sections
              201 and 301; or

                     (g)    to provide for the  authentication  and  delivery of
              bearer securities and coupons  appertaining  thereto  representing
              interest,   if  any,  thereon  and  for  the  procedures  for  the
              registration,  exchange and replacement thereof and for the giving
              of notice to, and the  solicitation of the vote or consent of, the
              holders  thereof,  and for any and all  other  matters  incidental
              thereto; or

                                      -46-
<PAGE>

                     (h)    to  evidence  and  provide  for  the  acceptance  of
              appointment  hereunder  by a  separate  or  successor  Trustee  or
              co-trustee  with respect to the  Securities  of one or more series
              and to add to or change any of the provisions of this Indenture as
              shall be necessary to provide for or facilitate the administration
              of the trusts hereunder by more than one Trustee,  pursuant to the
              requirements of Section 911(b); or

                     (i)    to provide for the procedures required to permit the
              Company to utilize,  at its option, a non  certificated  system of
              registration for all, or any series or Tranche of, the Securities;
              or

                     (j)    to  change  any  place  or  places   where  (1)  the
              principal of and premium, if any, and interest,  if any, on all or
              any  series  of  Securities,  or any  Tranche  thereof,  shall  be
              payable,  (2) all or any  series  of  Securities,  or any  Tranche
              thereof, may be surrendered for registration of transfer,  (3) all
              or any  series  of  Securities,  or any  Tranche  thereof,  may be
              surrendered  for  exchange  and (4) notices and demands to or upon
              the Company in respect of all or any series of Securities,  or any
              Tranche thereof, and this Indenture may be served; or

                     (k)    to cure any ambiguity,  to correct or supplement any
              provision  herein which may be defective or inconsistent  with any
              other  provision  herein,  or to make  any  other  changes  to the
              provisions  hereof  or to add other  provisions  with  respect  to
              matters or questions  arising under this Indenture,  provided that
              such other  changes or additions  shall not  adversely  affect the
              interests of the Holders of Securities of any series or Tranche in
              any material respect.

              Without  limiting the  generality of the  foregoing,  if the Trust
Indenture  Act as in effect at the date of the  execution  and  delivery of this
Indenture or at any time thereafter shall be amended and

                     (x)    if any  such  amendment  shall  require  one or more
              changes to any  provisions  hereof or the inclusion  herein of any
              additional  provisions,  or shall by operation of law be deemed to
              effect such changes or incorporate such provisions by reference or
              otherwise,  this Indenture shall be deemed to have been amended so
              as to conform to such  amendment to the Trust  Indenture  Act, and
              the  Company  and the  Trustee  may,  without  the  consent of any
              Holders,  enter into an indenture  supplemental hereto to evidence
              such amendment hereof; or

                     (y)    if any  such  amendment  shall  permit  one or  more
              changes to, or the elimination of, any provisions hereof which, at
              the  date of the  execution  and  delivery  hereof  or at any time
              thereafter,  are  required  by  the  Trust  Indenture  Act  to  be
              contained  herein or are contained herein to reflect any provision
              of the  Trust  Indenture  Act as in  effect  at  such  date,  this
              Indenture  shall be  deemed to have been  amended  to effect  such
              changes or  elimination,  and the Company,  the  Guarantor and the
              Trustee  may,  without the consent of any  Holders,  enter into an
              indenture  supplemental  hereto to this  Indenture  to effect such
              changes or elimination or evidence such amendment.

SECTION 1202.        SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS.

              Subject to the provisions of Section 1201, with the consent of the
Holders  of not less  than a  majority  in  aggregate  principal  amount  of the
Securities of all series then  Outstanding  under this Indenture,  considered as
one class, by Act of said Holders delivered to the Company and the Trustee,  the
Company and the Guarantor, when authorized by Board Resolutions, and the Trustee
may enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions  to, or changing in any manner or  eliminating  any of the
provisions  of,  this  Indenture;  provided,  however,  that if  there  shall be
Securities  of more than one  series  Outstanding  hereunder  and if a  proposed
supplemental  indenture  shall  directly  affect  the  rights of the  Holders of
Securities of one or more,  but less than all, of such series,  then the consent
only  of  the  Holders  of a  majority  in  aggregate  principal  amount  of the
Outstanding  Securities  of all series so directly  affected,  considered as one
class, shall be required;  and provided,  further, that if the Securities of any
series  shall  have been  issued in more than one  Tranche  and if the  proposed
supplemental  indenture  shall  directly  affect  the  rights of the  Holders of
Securities of one or more, but less than all, of such Tranches, then the consent
only  of  the  Holders  of a  majority  in  aggregate

                                      -47-
<PAGE>

principal  amount of the  Outstanding  Securities  of all  Tranches  so directly
affected,  considered as one class,  shall be required;  and provided,  further,
that no such supplemental  indenture shall, without the consent of the Holder of
each Outstanding Security of each series or Tranche so directly affected,

                     (a)    change the Stated  Maturity of the  principal of, or
              any installment of principal of or interest on (except as provided
              in Section 312 hereof),  any Security  (other than pursuant to the
              terms thereof), or reduce the principal amount thereof or the rate
              of interest  thereon (or the amount of any installment of interest
              thereon) or change the method of  calculating  such rate or reduce
              any premium  payable upon the  redemption  thereof,  or reduce the
              amount of the  principal of a Discount  Security that would be due
              and payable upon a  declaration  of  acceleration  of the Maturity
              thereof  pursuant  to Section  802, or change the coin or currency
              (or other  property),  in which any Security or any premium or the
              interest thereon is payable, or impair the right to institute suit
              for the  enforcement  of any such  payment  on or after the Stated
              Maturity  thereof (or, in the case of redemption,  on or after the
              Redemption Date), or

                     (b)    reduce the  percentage  in  principal  amount of the
              Outstanding  Securities  of any series  [(or,  if  applicable,  in
              liquidation  preference of any series of Preferred Securities)] or
              any  Tranche  thereof,  the  consent  of the  Holders  of which is
              required for any such  supplemental  indenture,  or the consent of
              the Holders of which is required for any waiver of compliance with
              any  provision of this  Indenture or of any default  hereunder and
              its  consequences,  or reduce the requirements of Section 1304 for
              quorum or voting, or

                     (c)    modify  any  of  the  provisions  of  this  Section,
              Section 606 or Section 813 with respect to the  Securities  of any
              series or any Tranche thereof,  except to increase the percentages
              in  principal  amount  referred  to in this  Section or such other
              Sections or to provide  that other  provisions  of this  Indenture
              cannot be modified or waived  without the consent of the Holder of
              each Outstanding  Security  affected thereby;  provided,  however,
              that this clause shall not be deemed to require the consent of any
              Holder with respect to changes in the  references to "the Trustee"
              and concomitant  changes in this Section,  or the deletion of this
              proviso,  in accordance  with the  requirements of Sections 911(b)
              and 1201(h).

[Notwithstanding  the  foregoing,  so  long as any of the  Preferred  Securities
remain  outstanding,  the Trustee may not  consent to a  supplemental  indenture
under this  Section 1202  without the prior  consent,  obtained as provided in a
Trust Agreement pertaining to a Trust which issued such Preferred Securities, of
the holders of not less than a majority in aggregate  liquidation  preference of
all Preferred Securities issued by such Trust affected, considered as one class,
or, in the case of changes  described in clauses (a), (b) and (c) above, 100% in
aggregate   liquidation   preference  of  all  such  Preferred  Securities  then
outstanding  which  would be  affected  thereby,  considered  as one  class.]  A
supplemental  indenture  which (x) changes or  eliminates  any covenant or other
provision of this  Indenture  which has expressly  been included  solely for the
benefit of the Holders of, or which is to remain in effect only so long as there
shall be  Outstanding,  Securities of one or more particular  series,  or one or
more Tranches  thereof,  or (y) modifies the rights of the Holders of Securities
of such series or Tranches  with  respect to such  covenant or other  provision,
shall be deemed not to affect the rights under this  Indenture of the Holders of
Securities of any other series or Tranche.

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

SECTION 1203.        EXECUTION OF SUPPLEMENTAL INDENTURES.

              In executing,  or accepting the additional  trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby of
the trusts created by this Indenture,  the Trustee shall be entitled to receive,
and  (subject  to Section  901) shall be fully  protected  in relying  upon,  an
Opinion of Counsel stating that the execution of such supplemental  indenture is
authorized  or  permitted by this  Indenture.  The Trustee may, but shall not be
obligated  to,  enter into any such  supplemental  indenture  which  affects the
Trustee's own rights, duties,  immunities or liabilities under this Indenture or
otherwise.

                                      -48-
<PAGE>

SECTION 1204.        EFFECT OF SUPPLEMENTAL INDENTURES.

              Upon  the  execution  of any  supplemental  indenture  under  this
Article  this  Indenture  shall be modified in  accordance  therewith,  and such
supplemental indenture shall form a part of this Indenture for all purposes; and
every Holder of Securities theretofore or thereafter authenticated and delivered
hereunder shall be bound thereby.  Any supplemental  indenture permitted by this
Article may restate this Indenture in its entirety,  and, upon the execution and
delivery  thereof,  any such  restatement  shall  supersede  this  Indenture  as
theretofore in effect for all purposes.

SECTION 1205.        CONFORMITY WITH TRUST INDENTURE ACT.

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

SECTION 1206.        REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURES.

              Securities of any series,  or any Tranche  thereof,  authenticated
and delivered after the execution of any supplemental indenture pursuant to this
Article  may,  and shall if  required  by the  Trustee,  bear a notation in form
approved  by the  Trustee as to any  matter  provided  for in such  supplemental
indenture.  If the Company shall so determine,  new Securities of any series, or
any Tranche  thereof,  so modified as to conform,  in the opinion of the Trustee
and the Company, to any such supplemental indenture may be prepared and executed
by the Company,  and  authenticated and delivered by the Trustee in exchange for
Outstanding Securities of such series or Tranche.

SECTION 1207.        MODIFICATION WITHOUT SUPPLEMENTAL INDENTURE.

              To the extent,  if any, that the terms of any particular series of
Securities  shall have been  established in or pursuant to a Board Resolution or
an  Officer's  Certificate  pursuant  to  a  supplemental   indenture  or  Board
Resolution as contemplated by Section 301, and not in an indenture  supplemental
hereto,  additions to, changes in or the elimination of any of such terms may be
effected by means of a supplemental  Board Resolution or Officer's  Certificate,
as the case may be,  delivered  to,  and  accepted  by, the  Trustee;  provided,
however,  that such supplemental Board Resolution or Officer's Certificate shall
not be accepted by the Trustee or otherwise be effective  unless all  conditions
set forth in this  Indenture  which would be required  to be  satisfied  if such
additions,  changes or elimination  were  contained in a supplemental  indenture
shall have been  appropriately  satisfied.  Upon the  acceptance  thereof by the
Trustee,  any such supplemental Board Resolution or Officer's  Certificate shall
be deemed to be a  "supplemental  indenture"  for  purposes of Section  1204 and
1206.

                                ARTICLE THIRTEEN

                   MEETINGS OF HOLDERS; ACTION WITHOUT MEETING

SECTION 1301.        PURPOSES FOR WHICH MEETINGS MAY BE CALLED.

              A meeting of Holders of Securities of one or more, or all, series,
or any Tranche or Tranches  thereof,  may be called at any time and from time to
time  pursuant  to this  Article  to  make,  give or take any  request,  demand,
authorization,  direction,  notice,  consent, waiver or other action provided by
this  Indenture  to be made,  given or taken by  Holders of  Securities  of such
series or Tranches.

SECTION 1302.        CALL, NOTICE AND PLACE OF MEETINGS.

              (a)    The  Trustee  may at any time call a meeting  of Holders of
Securities of one or more, or all, series,  or any Tranche or Tranches  thereof,
for any purpose  specified in Section  1301, to be held at such time and at such
place in the Borough of  Manhattan,  The City of New York,  as the Trustee shall
determine,  or, with the approval of the Company,  at any other place. Notice of
every such meeting,  setting forth the time and the place of such meeting and in
general terms the action  proposed to be taken at such meeting,  shall be given,
in the manner  provided in Section  106, not less than 21 nor more than 180 days
prior to the date fixed for the meeting.

                                      -49-
<PAGE>

              (b)    If the Trustee shall have been  requested to call a meeting
of the Holders of Securities of one or more, or all,  series,  or any Tranche or
Tranches  thereof,  by the  Company,  the  Guarantor or by the Holders of 33% in
aggregate principal amount of all of such series and Tranches, considered as one
class,  for any purpose  specified in Section 1301, by written  request  setting
forth in reasonable  detail the action proposed to be taken at the meeting,  and
the Trustee shall not have given the notice of such meeting within 21 days after
receipt of such request or shall not thereafter  proceed to cause the meeting to
be held as provided  herein,  then the Company,  the Guarantor or the Holders of
Securities  of such series and  Tranches in the amount above  specified,  as the
case may be, may  determine  the time and the place in the Borough of Manhattan,
The City of New York,  or in such other place as shall be determined or approved
by the Company or the Guarantor,  for such meeting and may call such meeting for
such  purposes by giving notice  thereof as provided in  subsection  (a) of this
Section.

              (c)    Any  meeting of Holders of  Securities  of one or more,  or
all, series, or any Tranche or Tranches  thereof,  shall be valid without notice
if the Holders of all  Outstanding  Securities  of such  series or Tranches  are
present  in  person  or by proxy  and if  representatives  of the  Company,  the
Guarantor and the Trustee are present,  or if notice is waived in writing before
or after the  meeting  by the  Holders  of all  Outstanding  Securities  of such
series,  or by such of them as are not  present  at the  meeting in person or by
proxy, and by the Company, the Guarantor and the Trustee.

SECTION 1303.        PERSONS ENTITLED TO VOTE AT MEETINGS.

              To be entitled to vote at any meeting of Holders of  Securities of
one or more, or all, series, or any Tranche or Tranches thereof,  a Person shall
be (a) a  Holder  of one or  more  Outstanding  Securities  of  such  series  or
Tranches,  or (b) a Person  appointed by an instrument in writing as proxy for a
Holder  or  Holders  of one or more  Outstanding  Securities  of such  series or
Tranches by such Holder or  Holders.  The only  Persons who shall be entitled to
attend any meeting of Holders of  Securities  of any series or Tranche  shall be
the  Persons   entitled  to  vote  at  such  meeting  and  their  counsel,   any
representatives  of the Trustee and its counsel and any  representatives  of the
Company and the Guarantor and their counsel.

SECTION 1304.        QUORUM; ACTION.

              The Persons  entitled to vote a majority  in  aggregate  principal
amount of the Outstanding  Securities of the series and Tranches with respect to
which a meeting shall have been called as hereinbefore  provided,  considered as
one class,  shall  constitute a quorum for a meeting of Holders of Securities of
such series and Tranches;  provided,  however, that if any action is to be taken
at such  meeting  which this  Indenture  expressly  provides may be taken by the
Holders of a specified  percentage,  which is less than a majority, in principal
amount of the Outstanding Securities of such series and Tranches,  considered as
one class, the Persons  entitled to vote such specified  percentage in principal
amount of the Outstanding Securities of such series and Tranches,  considered as
one class, shall constitute a quorum. In the absence of a quorum within one hour
of the time appointed for any such meeting,  the meeting  shall,  if convened at
the request of Holders of Securities of such series and Tranches,  be dissolved.
In any  other  case the  meeting  may be  adjourned  for such  period  as may be
determined  by the  chairman of the  meeting  prior to the  adjournment  of such
meeting.  In the  absence  of a  quorum  at any  such  adjourned  meeting,  such
adjourned  meeting may be further adjourned for such period as may be determined
by the  chairman  of the  meeting  prior to the  adjournment  of such  adjourned
meeting. Except as provided by Section 1305(e), notice of the reconvening of any
meeting  adjourned  for more than 30 days shall be given as  provided in Section
1302(a)  not less  than ten days  prior  to the  date on which  the  meeting  is
scheduled to be reconvened.  Notice of the  reconvening of an adjourned  meeting
shall state expressly the percentage, as provided above, of the principal amount
of the Outstanding Securities of such series and Tranches which shall constitute
a quorum.

              Except as limited by Section 1202, any  resolution  presented to a
meeting or  adjourned  meeting duly  reconvened  at which a quorum is present as
aforesaid  may be  adopted  only by the  affirmative  vote of the  Holders  of a
majority in aggregate  principal  amount of the  Outstanding  Securities  of the
series and Tranches  with respect to which such meeting  shall have been called,
considered as one class;  provided,  however,  that,  except as so limited,  any
resolution  with respect to any action which this Indenture  expressly  provides
may be taken by the  Holders  of a  specified  percentage,  which is less than a
majority,  in principal amount of the Outstanding  Securities of such series and
Tranches,  considered as one class,  may be adopted at a meeting or an adjourned
meeting duly

                                      -50-
<PAGE>

reconvened and at which a quorum is present as aforesaid by the affirmative vote
of  the  Holders  of  such  specified  percentage  in  principal  amount  of the
Outstanding Securities of such series and Tranches, considered as one class.

              Any resolution  passed or decision taken at any meeting of Holders
of Securities  duly held in accordance with this Section shall be binding on all
the Holders of  Securities of the series and Tranches with respect to which such
meeting  shall have been  held,  whether or not  present or  represented  at the
meeting.

SECTION 1305.        ATTENDANCE AT MEETINGS; DETERMINATION OF VOTING RIGHTS;
                         CONDUCT AND ADJOURNMENT OF MEETINGS.

              (a)    Attendance at meetings of Holders of  Securities  may be in
person or by proxy;  and, to the extent  permitted  by law, any such proxy shall
remain in effect and be binding upon any future  Holder of the  Securities  with
respect  to which it was given  unless  and until  specifically  revoked  by the
Holder or future Holder of such Securities before being voted.

              (b)    Notwithstanding any other provisions of this Indenture, the
Trustee may make such  reasonable  regulations  as it may deem advisable for any
meeting  of  Holders  of  Securities  in regard to proof of the  holding of such
Securities and of the  appointment  of proxies and in regard to the  appointment
and duties of inspectors of votes,  the submission  and  examination of proxies,
certificates  and other  evidence of the right to vote,  and such other  matters
concerning  the conduct of the meeting as it shall deem  appropriate.  Except as
otherwise  permitted  or  required  by any  such  regulations,  the  holding  of
Securities  shall be proved  in the  manner  specified  in  Section  104 and the
appointment of any proxy shall be proved in the manner specified in Section 104.
Such  regulations  may provide  that  written  instruments  appointing  proxies,
regular on their  face,  may be  presumed  valid and  genuine  without the proof
specified in Section 104 or other proof.

              (c)    The Trustee shall,  by an instrument in writing,  appoint a
temporary chairman of the meeting,  unless the meeting shall have been called by
the  Company or by Holders as  provided  in Section  1302(b),  in which case the
Company or the  Holders of  Securities  of the series and  Tranches  calling the
meeting,  as the case may be, shall in like manner appoint a temporary chairman.
A permanent  chairman and a permanent  secretary of the meeting shall be elected
by vote of the Persons entitled to vote a majority in aggregate principal amount
of the  Outstanding  Securities  of all series and Tranches  represented  at the
meeting, considered as one class.

              (d)    At any  meeting  each  Holder or proxy shall be entitled to
one vote for each $1,000  principal  amount of Securities held or represented by
him; provided,  however, that no vote shall be cast or counted at any meeting in
respect of any Security  challenged as not Outstanding and ruled by the chairman
of the meeting to be not Outstanding.  The chairman of the meeting shall have no
right to vote, except as a Holder of a Security or proxy.

              (e)    Any meeting duly called pursuant to Section 1302 at which a
quorum is present may be adjourned from time to time by Persons entitled to vote
a majority in aggregate  principal  amount of the Outstanding  Securities of all
series and Tranches represented at the meeting, considered as one class; and the
meeting may be held as so adjourned without further notice.

SECTION 1306.        COUNTING VOTES AND RECORDING ACTION OF MEETINGS.

              The vote upon any  resolution  submitted to any meeting of Holders
shall be by written  ballots on which shall be subscribed  the signatures of the
Holders  or of their  representatives  by proxy and the  principal  amounts  and
serial numbers of the  Outstanding  Securities,  of the series and Tranches with
respect to which the meeting  shall have been  called,  held or  represented  by
them.  The permanent  chairman of the meeting  shall  appoint two  inspectors of
votes  who  shall  count  all  votes  cast at the  meeting  for or  against  any
resolution  and who shall make and file with the  secretary of the meeting their
verified  written  reports  of all  votes  cast at the  meeting.  A  record,  in
duplicate,  of the  proceedings  of each meeting of Holders shall be prepared by
the  secretary  of the  meeting  and there  shall be attached to said record the
original  reports of the inspectors of votes on any vote by ballot taken thereat
and  affidavits  by one or more persons  having  knowledge of the facts  setting
forth a copy of the notice of the meeting and showing that said notice was given
as provided in Section 1302 and, if applicable, Section 1304. Each

                                      -51-
<PAGE>

copy shall be signed and verified by the  affidavits of the  permanent  chairman
and  secretary  of the  meeting  and one such  copy  shall be  delivered  to the
Company,  and another to the Trustee to be preserved by the Trustee,  the latter
to have attached thereto the ballots voted at the meeting.  Any record so signed
and verified shall be conclusive evidence of the matters therein stated.

SECTION 1307.        ACTION WITHOUT MEETING.

              In  lieu  of a  vote  of  Holders  at a  meeting  as  hereinbefore
contemplated in this Article,  any request,  demand,  authorization,  direction,
notice,  consent,  waiver or other action may be made, given or taken by Holders
by written instruments as provided in Section 104.

                                ARTICLE FOURTEEN
                             [INTENTIONALLY OMITTED]

                                 ARTICLE FIFTEEN

                           SUBORDINATION OF SECURITIES

SECTION 1501.        SECURITIES SUBORDINATE TO SENIOR INDEBTEDNESS OF
                     THE COMPANY.

              The Company, for itself, its successors and assigns, covenants and
agrees,  and each Holder of the  Securities  of each series,  by its  acceptance
thereof, likewise covenants and agrees, that the payment of the principal of and
premium,  if any, and  interest,  if any, on each and all of the  Securities  is
hereby  expressly  subordinated  and subject to the extent and in the manner set
forth in this  Article,  in right of payment to the prior payment in full of all
Senior Indebtedness of the Company.

              Each Holder of the  Securities of each series,  by its  acceptance
thereof, authorizes and directs the Trustee on its behalf to take such action as
may be necessary or appropriate to effectuate the  subordination  as provided in
this Article, and appoints the Trustee its attorney-in-fact for any and all such
purposes.

SECTION 1502.        PAYMENT OVER OF PROCEEDS OF SECURITIES.

              In the event (a) of any  insolvency or bankruptcy  proceedings  or
any receivership,  liquidation,  reorganization or other similar  proceedings in
respect  of  the  Company  or a  substantial  part  of its  property,  or of any
proceedings  for  liquidation,  dissolution  or other winding up of the Company,
whether  or not  involving  insolvency  or  bankruptcy,  or (b)  subject  to the
provisions of Section 1503,  that (i) a default shall have occurred with respect
to the payment of principal of or interest on or other monetary  amounts due and
payable on any Senior  Indebtedness  of the  Company,  or (ii) there  shall have
occurred a default (other than a default in the payment of principal or interest
or other monetary amounts due and payable) in respect of any Senior Indebtedness
of the Company,  as defined therein or in the instrument under which the same is
outstanding, permitting the holder or holders thereof to accelerate the maturity
thereof  (with notice or lapse of time,  or both),  and such default  shall have
continued  beyond the period of grace, if any, in respect  thereof,  and, in the
cases of subclauses (i) and (ii) of this clause (b), such default shall not have
been  cured  or  waived  or shall  not have  ceased  to  exist,  or (c) that the
principal  of and accrued  interest on the  Securities  of any series shall have
been declared due and payable pursuant to Section 801 and such declaration shall
not have been rescinded and annulled as provided in Section 802, then:

                            (1)    the holders of all Senior Indebtedness of the
                     Company  shall first be entitled to receive  payment of the
                     full amount due  thereon,  or  provision  shall be made for
                     such payment in money or money's worth,  before the Holders
                     of any of the  Securities are entitled to receive a payment
                     on  account  of  the   principal  of  or  interest  on  the
                     indebtedness   evidenced  by  the  Securities,   including,
                     without limitation,  any payments made pursuant to Articles
                     Four and Five;

                                      -52-
<PAGE>

                            (2)    any payment by, or distribution of assets of,
                     the  Company  of any kind or  character,  whether  in cash,
                     property or securities,  to which any Holder or the Trustee
                     would  be  entitled  except  for  the  provisions  of  this
                     Article,  shall be paid or delivered  by the Person  making
                     such  payment  or   distribution,   whether  a  trustee  in
                     bankruptcy, a receiver or liquidating trustee or otherwise,
                     directly to the holders of such Senior  Indebtedness of the
                     Company or their  representative or  representatives  or to
                     the trustee or trustees under any indenture under which any
                     instruments  evidencing any of such Senior  Indebtedness of
                     the Company may have been issued,  ratably according to the
                     aggregate  amounts  remaining  unpaid  on  account  of such
                     Senior  Indebtedness  of the Company held or represented by
                     each,  to the extent  necessary  to make payment in full of
                     all Senior  Indebtedness  of the Company  remaining  unpaid
                     after   giving   effect  to  any   concurrent   payment  or
                     distribution (or provision therefor) to the holders of such
                     Senior  Indebtedness of the Company,  before any payment or
                     distribution  is made to the  Holders  of the  indebtedness
                     evidenced by the  Securities  or to the Trustee  under this
                     Indenture; and

                            (3)    in  the  event  that,   notwithstanding   the
                     foregoing,  any payment by, or  distribution  of assets of,
                     the  Company  of any kind or  character,  whether  in cash,
                     property  or  securities,  in  respect of  principal  of or
                     interest  on  the  Securities  or in  connection  with  any
                     repurchase  by the  Company  of the  Securities,  shall  be
                     received  by the  Trustee or any  Holder  before all Senior
                     Indebtedness  of the Company is paid in full,  or provision
                     is made for such  payment in money or money's  worth,  such
                     payment  or  distribution  in respect  of  principal  of or
                     interest  on  the  Securities  or in  connection  with  any
                     repurchase by the Company of the  Securities  shall be paid
                     over to the  holders  of such  Senior  Indebtedness  of the
                     Company or their  representative or  representatives  or to
                     the trustee or trustees under any indenture under which any
                     instruments  evidencing any such Senior Indebtedness of the
                     Company may have been  issued,  ratably as  aforesaid,  for
                     application  to the payment of all Senior  Indebtedness  of
                     the  Company   remaining   unpaid  until  all  such  Senior
                     Indebtedness  of the Company  shall have been paid in full,
                     after   giving   effect  to  any   concurrent   payment  or
                     distribution (or provision therefor) to the holders of such
                     Senior Indebtedness of the Company.

              Notwithstanding  the  foregoing,  at any time  after the 123rd day
following  the date of  deposit  of cash or  Eligible  Obligations  pursuant  to
Section 701 or 702 (provided all  conditions  set out in such Section shall have
been  satisfied),  the funds so deposited  and any interest  thereon will not be
subject  to any  rights  of  holders  of  Senior  Indebtedness  of  the  Company
including,  without  limitation,  those  arising  under  this  Article  Fifteen;
provided  that no event  described  in clauses  (e) and (f) of Section  801 with
respect to the Company has occurred during such 123-day period.

              For purposes of this Article  only,  the words "cash,  property or
securities"  shall not be deemed to  include  shares of stock of the  Company as
reorganized or readjusted, or securities of the Company or any other corporation
provided for by a plan or reorganization  or readjustment  which are subordinate
in right of payment to all Senior  Indebtedness  of the Company which may at the
time be  outstanding  to the same extent as, or to a greater  extent  than,  the
Securities are so subordinated as provided in this Article. The consolidation of
the Company with, or the merger of the Company into, another  corporation or the
liquidation or  dissolution of the Company  following the conveyance or transfer
of its  property as an entirety,  or  substantially  as an entirety,  to another
corporation upon the terms and conditions  provided for in Article Eleven hereof
shall not be deemed a dissolution, winding-up, liquidation or reorganization for
the purposes of this Section 1502 if such other corporation  shall, as a part of
such consolidation,  merger,  conveyance or transfer, comply with the conditions
stated in Article Eleven hereof. Nothing in Section 1501 or in this Section 1502
shall  apply to claims of, or  payments  to, the  Trustee  under or  pursuant to
Section 907.

SECTION 1503.        DISPUTES WITH HOLDERS OF CERTAIN SENIOR INDEBTEDNESS OF
                     THE COMPANY.

              Any  failure by the  Company to make any payment on or perform any
other  obligation in respect of Senior  Indebtedness of the Company,  other than
any indebtedness  incurred by the Company or assumed or guaranteed,  directly or
indirectly,  by the  Company  for  money  borrowed  (or any  deferral,  renewal,
extension or

                                      -53-
<PAGE>

refunding  thereof) or any other  obligation as to which the  provisions of this
Section shall have been waived by the Company in the  instrument or  instruments
by which the Company  incurred,  assumed,  guaranteed or otherwise  created such
indebtedness  or  obligation,  shall not be deemed a default under clause (b) of
Section 1502 if (i) the Company shall be disputing  its  obligation to make such
payment  or  perform  such  obligation  and (ii)  either  (A) no final  judgment
relating to such dispute shall have been issued  against the Company which is in
full force and effect and is not subject to further review, including a judgment
that has become  final by reason of the  expiration  of the time within  which a
party may seek  further  appeal or  review,  or (B) in the event that a judgment
that is subject to further  review or appeal has been issued,  the Company shall
in good faith be prosecuting an appeal or other proceeding for review and a stay
or execution shall have been obtained pending such appeal or review.

SECTION 1504.        SUBROGATION.

              Senior  Indebtedness  of the  Company  shall not be deemed to have
been paid in full  unless  the  holders  thereof  shall have  received  cash (or
securities or other  property  satisfactory  to such holders) in full payment of
such Senior  Indebtedness of the Company then  outstanding.  Upon the payment in
full of all Senior Indebtedness of the Company, the rights of the Holders of the
Securities  shall  be  subrogated  to  the  rights  of  the  holders  of  Senior
Indebtedness of the Company to receive any further  payments or distributions of
cash,  property or  securities  of the Company  applicable to the holders of the
Senior  Indebtedness  of the Company until all amounts  owing on the  Securities
shall be paid in full; and such payments or distributions  of cash,  property or
securities  received  by the  Holders  of the  Securities,  by  reason  of  such
subrogation, which otherwise would be paid or distributed to the holders of such
Senior Indebtedness of the Company shall, as between the Company,  its creditors
other than the holders of Senior  Indebtedness of the Company,  and the Holders,
be deemed to be a payment by the Company to or on account of Senior Indebtedness
of the Company,  it being understood that the provisions of this Article are and
are  intended  solely for the purpose of  defining  the  relative  rights of the
Holders,  on the one hand,  and the  holders of the Senior  Indebtedness  of the
Company, on the other hand.

SECTION 1505.        OBLIGATION OF THE COMPANY UNCONDITIONAL.

              Nothing  contained in this Article or elsewhere in this  Indenture
or in the Securities is intended to or shall impair,  as among the Company,  its
creditors  other than the holders of Senior  Indebtedness of the Company and the
Holders, the obligation of the Company, which is absolute and unconditional,  to
pay to the Holders the  principal of and interest on the  Securities as and when
the same shall  become due and payable in  accordance  with their  terms,  or is
intended to or shall affect the relative  rights of the Holders and creditors of
the Company other than the holders of Senior  Indebtedness  of the Company,  nor
shall  anything  herein or  therein  prevent  the  Trustee  or any  Holder  from
exercising all remedies otherwise permitted by applicable law upon default under
this Indenture, subject to the rights, if any, under this Article of the holders
of Senior Indebtedness of the Company in respect of cash, property or securities
of the Company received upon the exercise of any such remedy.

              Upon any payment or  distribution  of assets or  securities of the
Company  referred to in this  Article,  the  Trustee  and the  Holders  shall be
entitled to rely upon any order or decree of a court of  competent  jurisdiction
in which such dissolution, winding up, liquidation or reorganization proceedings
are pending for the purpose of ascertaining  the Persons entitled to participate
in such distribution,  the holders of the Senior Indebtedness of the Company and
other  indebtedness of the Company,  the amount thereof or payable thereon,  the
amount or amounts paid or  distributed  thereon,  and all other facts  pertinent
thereto or to this Article.

              The Trustee  shall be entitled to rely on the  delivery to it of a
written  notice  by a  Person  representing  himself  to be a holder  of  Senior
Indebtedness  of the  Company (or a  representative  of such holder or a trustee
under any  indenture  under  which any  instruments  evidencing  any such Senior
Indebtedness  of the Company may have been issued) to establish that such notice
has been given by a holder of such  Senior  Indebtedness  of the Company or such
representative  or  trustee  on behalf  of such  holder.  In the event  that the
Trustee  determines in good faith that further evidence is required with respect
to the right of any Person as a holder of Senior  Indebtedness of the Company to
participate in any payment or distribution pursuant to this Article, the Trustee
may request such Person to furnish  evidence to the reasonable  satisfaction  of
the Trustee as to the amount of Senior  Indebtedness of the Company held by such
Person,  the extent to which such  Person is  entitled  to  participate  in such
payment  or  distribution  and any other  facts  pertinent  to the right of such
Person under this Article, and, if such evidence is not

                                      -54-
<PAGE>

furnished,  the Trustee may defer any  payment to such Person  pending  judicial
determination  as to the  right  of such  Person  to  receive  such  payment  or
distribution.

SECTION 1506.        PRIORITY OF SENIOR INDEBTEDNESS OF THE COMPANY
                     UPON MATURITY.

              Upon the maturity of the principal of any Senior  Indebtedness  of
the Company by lapse of time,  acceleration or otherwise,  all matured principal
of Senior  Indebtedness of the Company and interest and premium, if any, thereon
shall first be paid in full before any payment of principal or premium,  if any,
or interest, if any, is made upon the Securities or before any Securities can be
acquired by the Company or any sinking  fund payment is made with respect to the
Securities  (except  that  required  sinking  fund  payments  may be  reduced by
Securities  acquired  before such  maturity of such Senior  Indebtedness  of the
Company).

SECTION 1507.        TRUSTEE AS HOLDER OF SENIOR INDEBTEDNESS OF THE COMPANY.

              The  Trustee  shall be  entitled  to all  rights set forth in this
Article with respect to any Senior  Indebtedness of the Company at any time held
by it,  to the same  extent as any other  holder of Senior  Indebtedness  of the
Company.  Nothing in this Article shall deprive the Trustee of any of its rights
as such holder.

SECTION 1508.        NOTICE TO TRUSTEE TO EFFECTUATE SUBORDINATION.

              Notwithstanding  the  provisions  of  this  Article  or any  other
provision of the  Indenture,  the Trustee shall not be charged with knowledge of
the  existence  of any facts which would  prohibit  the making of any payment of
moneys to or by the  Trustee  unless and until the Trustee  shall have  received
written notice  thereof from the Company,  from a Holder or from a holder of any
Senior Indebtedness of the Company or from any representative or representatives
of such holder or any trustee or trustees  under any  indenture  under which any
instruments evidencing any such Senior Indebtedness of the Company may have been
issued and, prior to the receipt of any such written  notice,  the Trustee shall
be  entitled,  subject to Section  901,  in all  respects to assume that no such
facts  exist;  provided,  however,  that,  if prior to the  fifth  Business  Day
preceding  the date upon which by the terms  hereof  any such  moneys may become
payable  for any  purpose,  or in the event of the  execution  of an  instrument
pursuant to Section 701 or 702 acknowledging that Securities or portions thereof
are deemed to have been paid for all purposes of this  Indenture,  acknowledging
that  the  entire  indebtedness  of the  Company  in  respect  thereof  has been
satisfied and  discharged or  acknowledging  satisfaction  and discharge of this
Indenture,  then if prior to the second  Business Day preceding the date of such
execution,  the Trustee  shall not have received with respect to such moneys the
notice  provided for in this Section,  then,  anything  herein  contained to the
contrary  notwithstanding,  the Trustee  may, in its  discretion,  receive  such
moneys  and/or apply the same to the purpose for which they were  received,  and
shall not be affected by any notice to the contrary, which may be received by it
on or after such date; provided,  however, that no such application shall affect
the obligations under this Article of the persons receiving such moneys from the
Trustee.

SECTION 1509.        MODIFICATION, EXTENSION, ETC. OF SENIOR INDEBTEDNESS OF
                     THE COMPANY.

              The holders of Senior  Indebtedness  of the Company  may,  without
affecting in any manner the subordination of the payment of the principal of and
premium,  if any, and interest,  if any, on the Securities,  at any time or from
time to time and in their absolute discretion,  agree with the Company to change
the manner, place or terms of payment,  change or extend the time of payment of,
or  renew  or  alter,  any  Senior  Indebtedness  of the  Company,  or  amend or
supplement  any  instrument  pursuant  to which any Senior  Indebtedness  of the
Company is issued,  or exercise or refrain  from  exercising  any other of their
rights  under  the  Senior  Indebtedness  of  the  Company  including,   without
limitation,  the waiver of default  thereunder,  all without notice to or assent
from the Holders or the Trustee.

SECTION 1510.        TRUSTEE HAS NO FIDUCIARY DUTY TO HOLDERS OF SENIOR
                     INDEBTEDNESS OF THE COMPANY.

              With respect to the holders of Senior Indebtedness of the Company,
the Trustee  undertakes  to perform or to observe only such of its covenants and
objectives as are specifically set forth in this Indenture, and no

                                      -55-
<PAGE>

implied  covenants  or  obligations  with  respect  to  the  holders  of  Senior
Indebtedness  of the  Company  shall be read into  this  Indenture  against  the
Trustee.  The  Trustee  shall  not be deemed  to owe any  fiduciary  duty to the
holders of Senior  Indebtedness  of the Company,  and shall not be liable to any
such  holders if it shall  mistakenly  pay over or deliver to the Holders or the
Company  or any other  Person,  money or assets to which any  holders  of Senior
Indebtedness  of the  Company  shall be  entitled  by virtue of this  Article or
otherwise.

SECTION 1511.        PAYING AGENTS OTHER THAN THE TRUSTEE.

              In case at any time any Paying Agent other than the Trustee  shall
have been  appointed  by the  Company  and be then  acting  hereunder,  the term
"Trustee" as used in this Article  shall in such case (unless the context  shall
otherwise  require) be construed as extending to and including such Paying Agent
within its meaning as fully for all intents and purposes as if such Paying Agent
were named in this Article in addition to or in place of the Trustee;  provided,
however,  that Sections 1507, 1508 and 1510 shall not apply to the Company if it
acts as Paying Agent.

SECTION 1512.        RIGHTS OF HOLDERS OF SENIOR INDEBTEDNESS OF THE
                     COMPANY NOT IMPAIRED.

              No right of any present or future holder of Senior Indebtedness of
the Company to enforce the subordination  herein shall at any time or in any way
be  prejudiced  or  impaired  by any act or  failure  to act on the  part of the
Company or by any  noncompliance  by the Company with the terms,  provisions and
covenants of this Indenture, regardless of any knowledge thereof any such holder
may have or be otherwise charged with.

SECTION 1513.        EFFECT OF SUBORDINATION PROVISIONS; TERMINATION.

              Notwithstanding  anything contained herein to the contrary,  other
than as provided in the immediately  succeeding sentence,  all the provisions of
this Indenture shall be subject to the provisions of this Article, so far as the
same may be applicable thereto.

              Notwithstanding  anything  contained  herein to the contrary,  the
provisions  of this  Article  Fifteen  shall be of no  further  effect,  and the
Securities  shall no longer be  subordinated  in right of  payment  to the prior
payment  of Senior  Indebtedness  of the  Company,  if the  Company  shall  have
delivered to the Trustee a notice to such effect.  Any such notice  delivered by
the Company shall not be deemed to be a  supplemental  indenture for purposes of
Article Twelve.

                                 ARTICLE SIXTEEN

         IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

SECTION 1601.        LIABILITY SOLELY CORPORATE.

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

                                      -56-
<PAGE>

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

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

                                      -57-
<PAGE>

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

                                          SOUTHWESTERN ELECTRIC POWER COMPANY

                                          By:
                                             -----------------------------
                                             Name:
                                             Title:
[SEAL]

ATTEST:

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

                                          THE BANK OF NEW YORK

                                          as Trustee

                                          By:
                                             -----------------------------
                                             Name:
                                             Title:
[SEAL]

ATTEST:

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

                                      -58-Exhibit 4(e)

                       SOUTHWESTERN ELECTRIC POWER COMPANY
                                     ISSUER

                                       TO

                              THE BANK OF NEW YORK,
                                     TRUSTEE

                                    ---------

                          SUPPLEMENTAL INDENTURE NO. 1

                        DATED AS OF _____________________

                   SUPPLEMENTAL TO THE SUBORDINATED INDENTURE
                       DATED AS OF ______________________

                 ESTABLISHING A SERIES OF SECURITIES DESIGNATED
                     __% SUBORDINATED DEBENTURES, SERIES ___
              LIMITED IN AGGREGATE PRINCIPAL AMOUNT TO $___________

<PAGE>

              SUPPLEMENTAL  INDENTURE  NO.  1,  dated as of  ___________________
between  SOUTHWESTERN  ELECTRIC POWER COMPANY,  a corporation duly organized and
existing under the laws of the State of Delaware  (herein called the "Company"),
and THE BANK OF NEW YORK, a New York  banking  corporation,  as Trustee  (herein
called  the   "Trustee"),   under  the   Subordinated   Indenture  dated  as  of
______________ (hereinafter called the "Original Indenture"),  this Supplemental
Indenture No. 1 being supplemental  thereto.  The Original Indenture and any and
all indentures and instruments  supplemental  thereto are hereinafter  sometimes
collectively called the "Indenture."

                             RECITALS OF THE COMPANY

              The Original  Indenture was authorized,  executed and delivered by
the Company to provide for the  issuance by the Company from time to time of its
Securities  (such  term and all other  capitalized  terms  used  herein  without
definition having the meanings assigned to them in the Original  Indenture),  to
be issued in one or more series as contemplated  therein,  of the payment of the
principal, premium, if any, and interest, if any, on such Securities.

              As  contemplated  by  Sections  301 and  1201(f)  of the  Original
Indenture,  the  Company  wishes  to  establish  a series  of  Securities  to be
designated "__% Subordinated Debentures,  Series ___" to be limited in aggregate
principal  amount  (except as  contemplated  in Section  301(b) of the  Original
Indenture)  to  $___________,  such  series  of  Securities  to  be  hereinafter
sometimes called "Series No. 1."

              [The  Company  wishes  to issue the  Securities  to  _______  (the
"Trust") to  evidence  loans made to the  Company of the  proceeds of  Preferred
Securities and common beneficial  ownership interests in the assets of the Trust
to be issued to the Company ("Common Securities").]

              The Company has duly authorized the execution and delivery of this
Supplemental Indenture No. 1 to establish the Securities of Series No. 1 and has
duly authorized the issuance of such Securities;  and all acts necessary to make
this  Supplemental  Indenture No. 1 a valid agreement of the Company to make the
Securities  of  Series  No.  1  valid  obligations  of the  Company,  have  been
performed.

              NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE NO. 1 WITNESSETH:

              For and in  consideration  of the  premises and of the purchase of
the Securities by the Holders thereof, it is mutually covenanted and agreed, for
the equal and  proportionate  benefit of all Holders of the Securities of Series
No. 1, as follows:

                                   ARTICLE ONE

                           FIRST SERIES OF SECURITIES

              SECTION  1.  There  is  hereby  created  a  series  of  Securities
designated "__% Subordinated  Debentures,  Series ____" and limited in aggregate
principal  amount  (except as  contemplated  in Section  301(b) of the  Original
Indenture) to $___________. The forms and

<PAGE>

terms of the  Securities  of Series No. 1 shall be  established  in an Officer's
Certificate  of the  Company,  as  contemplated  by Section 301 of the  Original
Indenture.

              SECTION 2. The Company  hereby  agrees that,  if the Company shall
make any  deposit  of money  and/or  Eligible  Obligations  with  respect to any
Securities of Series No. 1, or any portion of the principal  amount thereof,  as
contemplated  by Section 701 of the Indenture,  the Company shall not deliver an
Officer's  Certificate  described  in clause (z) in the first  paragraph of said
Section 701 unless the Company shall also deliver to the Trustee,  together with
such Officer's Certificate, either:

              (A)    an  instrument  wherein the  Company,  notwithstanding  the
       satisfaction  and  discharge  of its  indebtedness  in  respect  of  such
       Securities,  shall  assume the  obligation  (which  shall be absolute and
       unconditional)  to  irrevocably  deposit with the Trustee or Paying Agent
       such additional sums of money, if any, or additional Eligible Obligations
       (meeting the  requirements  of Section 701),  if any, or any  combination
       thereof, at such time or times, as shall be necessary,  together with the
       money and/or Eligible Obligations  theretofore so deposited,  to pay when
       due the principal of and premium,  if any, and interest due and to become
       due on such  Securities or portions  thereof,  all in accordance with and
       subject to the provisions of said Section 701;  provided,  however,  that
       such  instrument  may state that the  obligation  of the  Company to make
       additional  deposits as aforesaid shall be subject to the delivery to the
       Company by the Trustee of a notice  asserting the deficiency  accompanied
       by  an  opinion  of  an  independent   public  accountant  of  nationally
       recognized  standing,  selected by the Trustee,  showing the  calculation
       thereof  (which opinion shall be obtained at the expense of the Company);
       or

              (B)    an Opinion of  Counsel  to the effect  that the  Holders of
       such Securities,  or portions of the principal  amount thereof,  will not
       recognize  income,  gain or loss for  United  States  federal  income tax
       purposes as a result of the  satisfaction  and discharge of the Company's
       indebtedness  in respect  thereof  and will be  subject to United  States
       federal income tax on the same amounts, at the same times and in the same
       manner as if such satisfaction and discharge had not been effected.

                     [Additional provisions relating to Trust, if Securities are
issued in connection with Preferred Securities]

                     [Additional provisions relating to Remarketing and interest
rate reset if Securities are issued in connection with Stock Purchase Units]

                                   ARTICLE TWO

                                FORM OF SECURITY

       [IF THE SERIES __  DEBENTURE IS TO BE A GLOBAL  DEBENTURE,  INSERT - This
Debenture is a Global Debenture within the meaning of the Indenture  hereinafter
referred  to and is  registered  in the name of a  Depository  or a nominee of a
Depository. This Debenture is

<PAGE>

exchangeable  for  Debentures  registered in the name of a person other than the
Depository  or its nominee  only in the limited  circumstances  described in the
Indenture,  and no  transfer  of this  Debenture  (other than a transfer of this
Debenture as a whole by the  Depository  to a nominee of the  Depository or by a
nominee  of  the  Depository  to  the  Depository  or  another  nominee  of  the
Depository) may be registered except in limited circumstances.

       Unless this Debenture is presented by an authorized representative of The
Depository Trust Company, a New York corporation  ("DTC"),  to the issuer or its
agent for  registration  of  transfer,  exchange or payment,  and any  Debenture
issued  is  registered  in the name of Cede & Co.  or in such  other  name as is
requested by an authorized  representative of DTC and any payment hereon is made
to  Cede & Co.,  or to  such  other  entity  as is  requested  by an  authorized
representative  of DTC,  ANY  TRANSFER,  PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  inasmuch  as the  registered  owner
hereof, Cede & Co., has an interest herein.]

No. ____________                                                    $___________

CUSIP No. ____________

                       SOUTHWESTERN ELECTRIC POWER COMPANY

                             __% JUNIOR SUBORDINATED
                         DEFERRABLE INTEREST DEBENTURE,
                               SERIES__, DUE ____

       SOUTHWESTERN  ELECTRIC  POWER COMPANY,  a corporation  duly organized and
existing  under the laws of the  State of New York  (herein  referred  to as the
"Company",  which term  includes any successor  corporation  under the Indenture
hereinafter  referred  to),  for  value  received,  hereby  promises  to  pay to
______________  or  registered  assigns,  the  principal  sum of  ______________
Dollars on  __________,  ____,  and to pay interest on said  principal  sum from
__________,  ____ or from the most recent interest payment date (each such date,
an "Interest  Payment  Date") to which  interest has been paid or duly  provided
for,  quarterly  (subject to  deferral  as set forth  herein) in arrears on each
March 31, June 30, September 30 and December 31 commencing  __________,  ____ at
the rate of __% per annum until the  principal  hereof shall have become due and
payable,  and on any  overdue  principal  and  premium,  if  any,  and  (without
duplication and to the extent that payment of such interest is enforceable under
applicable  law) on any  overdue  installment  of  interest at the same rate per
annum during such overdue  period.  Interest shall be computed on the basis of a
360-day  year of  twelve  30-day  months.  In the  event  that any date on which
interest is payable on this  Debenture  is not a business  day,  then payment of
interest payable on such date will be made on the next succeeding day which is a
business day (and  without any interest or other  payment in respect of any such
delay),  except that,  if such business day is in the next  succeeding  calendar
year, such payment shall be made on the immediately  preceding  business day, in
each case with the same force and effect as if made on such date.  The  interest
installment  so  payable,  and  punctually  paid or duly  provided  for,  on any
Interest  Payment Date (other than  interest  payable on redemption or maturity)
will, as provided in the Indenture, be paid to the person in

<PAGE>

whose name this Debenture (or one or more Predecessor Debentures,  as defined in
said  Indenture) is  registered  at the close of business on the regular  record
date for such interest installment, [which shall be the close of business on the
business day next  preceding  such Interest  Payment  Date.] [IF PURSUANT TO THE
PROVISIONS OF SECTION  2.11(C) OF THE INDENTURE THE SERIES __ DEBENTURES  ARE NO
LONGER  REPRESENTED BY A GLOBAL DEBENTURE - which shall be the close of business
on the March 15, June 15, September 15 or December 15 (whether or not a business
day) next preceding such Interest  Payment Date.] Interest payable on redemption
or maturity  shall be payable to the person to whom the  principal is paid.  Any
such  interest  installment  not  punctually  paid or duly  provided  for  shall
forthwith  cease to be payable to the registered  holders on such regular record
date, and may be paid to the person in whose name this Debenture (or one or more
Predecessor  Debentures)  is  registered  at the close of  business on a special
record  date to be  fixed  by the  Trustee  for the  payment  of such  defaulted
interest, notice whereof shall be given to the registered holders of this series
of Debentures not less than 10 days prior to such special record date, or may be
paid  at any  time  in  any  other  lawful  manner  not  inconsistent  with  the
requirements  of any securities  exchange on which the Debentures may be listed,
and upon such  notice as may be  required  by such  exchange,  all as more fully
provided  in the  Indenture.  The  principal  of (and  premium,  if any) and the
interest  on this  Debenture  shall be  payable  at the  office or agency of the
Company  maintained  for that  purpose,  in any coin or  currency  of the United
States of America  which at the time of payment is legal  tender for  payment of
public and private  debts;  PROVIDED,  HOWEVER,  that payment of interest may be
made at the option of the Company by check  mailed to the  registered  holder at
such address as shall appear in the Debenture Register.

       Payment of the  principal  of,  premium,  if any,  and  interest  on this
Debenture is, to the extent provided in the Indenture,  subordinated and subject
in right of payment to the prior payment in full of all Senior Indebtedness,  as
defined in the Indenture, and this Debenture is issued subject to the provisions
of the  Indenture  with  respect  thereto.  Each  Holder of this  Debenture,  by
accepting  the same,  (a) agrees to and shall be bound by such  provisions,  (b)
authorizes  and  directs the Trustee on his or her behalf to take such action as
may be necessary or appropriate  to acknowledge or effectuate the  subordination
so provided and (c) appoints the Trustee his or her attorney-in-fact for any and
all such purposes.  Each Holder hereof, by his or her acceptance hereof,  hereby
waives all notice of the acceptance of the  subordination  provisions  contained
herein and in the Indenture by each holder of Senior  Indebtedness,  whether now
outstanding or hereafter incurred,  and waives reliance by each such holder upon
said provisions.

       This  Debenture  shall not be entitled to any benefit under the Indenture
hereinafter referred to, be valid or become obligatory for any purpose until the
Certificate of  Authentication  hereon shall have been signed by or on behalf of
the Trustee.

       Unless the Certificate of Authentication  hereon has been executed by the
Trustee or a duly appointed Authentication Agent referred to on the reverse side
hereof,  this Debenture shall not be entitled to any benefit under the Indenture
or be valid or obligatory for any purpose.

       The provisions of this Debenture are continued on the reverse side hereof
and such  continued  provisions  shall for all purposes  have the same effect as
though fully set forth at this place.

<PAGE>

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

Dated
     ---------------------

                                            SOUTHWESTERN ELECTRIC POWER COMPANY

                                            By
                                              -----------------------

Attest:

By
  --------------------

                     (FORM OF CERTIFICATE OF AUTHENTICATION)

                          CERTIFICATE OF AUTHENTICATION

       This is one of the  Debentures of the series of  Debentures  described in
the within-mentioned Indenture.

THE BANK OF NEW YORK
as Trustee or as Authentication Agent

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

                         (FORM OF REVERSE OF DEBENTURE)

       This  Debenture is one of a duly  authorized  series of Debentures of the
Company (herein  sometimes  referred to as the  "Debentures"),  specified in the
Indenture,  all issued or to be issued in one or more series  under and pursuant
to an Indenture dated as of __________, ____ duly executed and delivered between
the Company and The Bank of New York, a national banking  association  organized
and existing under the laws of the United States, as Trustee (herein referred to
as the "Trustee"),  as supplemented by the First Supplemental Indenture dated as
of  __________,  ____ between the Company and the Trustee (said  Indenture as so
supplemented  being  hereinafter  referred  to as  the  "Indenture"),  to  which
Indenture and all indentures supplemental thereto reference is

<PAGE>

hereby made for a description of the rights, limitations of rights, obligations,
duties and immunities  thereunder of the Trustee, the Company and the holders of
the  Debentures.  By the terms of the Indenture,  the Debentures are issuable in
series which may vary as to amount,  date of  maturity,  rate of interest and in
other  respects  as in the  Indenture  provided.  This series of  Debentures  is
limited in aggregate  principal  amount as specified in said First  Supplemental
Indenture.

       Subject to the terms of Article Three of the Indenture, the Company shall
have the right to redeem this  Debenture at the option of the  Company,  without
premium or penalty, in whole or in part at any time on or after __________, ____
(an "Optional Redemption"), at a redemption price equal to 100% of the principal
amount plus any accrued but unpaid  interest to the date of such redemption (the
"Optional  Redemption Price"). Any redemption pursuant to this paragraph will be
made  upon not less  than 30 nor more  than 60  days'  notice,  at the  Optional
Redemption  Price. If the Debentures are only partially  redeemed by the Company
pursuant to an Optional Redemption,  the Debentures will be redeemed pro rata or
by lot or by any other method  utilized by the Trustee;  provided that if at the
time of redemption,  the Debentures  are registered as a Global  Debenture,  the
Depository  shall determine by lot the principal  amount of such Debentures held
by each Debentureholder to be redeemed.

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

       In case an Event of  Default,  as  defined in the  Indenture,  shall have
occurred  and be  continuing,  the  principal  of all of the  Debentures  may be
declared,  and upon such  declaration  shall  become,  due and  payable,  in the
manner, with the effect and subject to the conditions provided in the Indenture.

       The  Indenture  contains  provisions  for  defeasance  at any time of the
entire  indebtedness  of this  Debenture  upon  compliance  by the Company  with
certain conditions set forth therein.

       The Indenture contains provisions permitting the Company and the Trustee,
with the  consent  of the  Holders  of not less  than a  majority  in  aggregate
principal  amount  of the  Debentures  of  each  series  affected  at  the  time
outstanding, as defined in the Indenture, to execute supplemental indentures for
the purpose of adding any provisions to or changing in any manner or eliminating
any of the  provisions of the Indenture or of any  supplemental  indenture or of
modifying in any manner the rights of the Holders of the  Debentures;  provided,
however, that no such supplemental indenture shall (i) extend the fixed maturity
of any  Debentures of any series,  or reduce the principal  amount  thereof,  or
reduce the rate or extend the time of payment of interest thereon, or reduce any
premium payable upon the redemption  thereof,  without the consent of the holder
of each  Debenture  so  affected  or (ii)  reduce the  aforesaid  percentage  of
Debentures,   the  holders  of  which  are  required  to  consent  to  any  such
supplemental  indenture,  without the  consent of the holders of each  Debenture
then outstanding and affected  thereby.  The Indenture also contains  provisions
permitting  the  Holders  of a majority  in  aggregate  principal  amount of the
Debentures of all series at the time outstanding  affected thereby, on behalf of
the Holders of the  Debentures of such series,  to waive any past default in the
performance of any of the covenants  contained in the Indenture,  or established
pursuant to the  Indenture  with respect to such series,  and its  consequences,
except a

<PAGE>

default in the payment of the  principal  of or premium,  if any, or interest on
any of the  Debentures  of such  series.  Any  such  consent  or  waiver  by the
registered  Holder  of  this  Debenture  (unless  revoked  as  provided  in  the
Indenture)  shall be conclusive and binding upon such Holder and upon all future
Holders and owners of this  Debenture  and of any  Debenture  issued in exchange
herefor or in place hereof  (whether by  registration of transfer or otherwise),
irrespective  of whether or not any  notation of such  consent or waiver is made
upon this Debenture.

       No reference  herein to the Indenture and no provision of this  Debenture
or of the Indenture  shall alter or impair the obligation of the Company,  which
is absolute and unconditional,  to pay the principal of and premium, if any, and
interest  on this  Debenture  at the time and  place  and at the rate and in the
money herein prescribed.

       The  Company  shall  have the  right at any time  during  the term of the
Debentures,  from time to time to extend  the  interest  payment  period of such
Debentures for up to 20 consecutive  quarters (the  "Extended  Interest  Payment
Period"),  at the end of which period the Company  shall pay all  interest  then
accrued and unpaid (together with interest thereon  compounded  quarterly at the
rate specified for the Debentures to the extent that payment of such interest is
enforceable under applicable law);  provided that, during such Extended Interest
Payment  Period  the  Company  shall  not  declare  or pay any  dividend  on, or
purchase,  acquire or make a  liquidation  payment  with  respect to, any of its
capital stock, or make any guarantee payments with respect thereto. Prior to the
termination  of any such  Extended  Interest  Payment  Period,  the  Company may
further extend such Extended Interest Payment Period,  provided that such Period
together with all such previous and further  extensions thereof shall not exceed
20 consecutive quarters or extend beyond the maturity of the Debentures.  At the
termination of any such Extended Interest Payment Period and upon the payment of
all accrued and unpaid interest and any additional amounts then due, the Company
may select a new Extended Interest Payment Period.

       As provided in the Indenture and subject to certain  limitations  therein
set forth, this Debenture is transferable by the registered holder hereof on the
Debenture  Register  of the  Company,  upon  surrender  of  this  Debenture  for
registration of transfer at the office or agency of the Company accompanied by a
written  instrument  or  instruments  of  transfer in form  satisfactory  to the
Company or the Trustee duly executed by the  registered  Holder hereof or his or
her  attorney  duly  authorized  in  writing,  and  thereupon  one or  more  new
Debentures  of authorized  denominations  and for the same  aggregate  principal
amount and series will be issued to the designated transferee or transferees. No
service charge will be made for any such  transfer,  but the Company may require
payment  of a sum  sufficient  to  cover  any tax or other  governmental  charge
payable in relation thereto.

       Prior to due presentment for  registration of transfer of this Debenture,
the Company,  the Trustee, any paying agent and any Debenture Registrar may deem
and treat the registered  Holder hereof as the absolute owner hereof (whether or
not this Debenture shall be overdue and  notwithstanding any notice of ownership
or writing  hereon made by anyone other than the  Debenture  Registrar)  for the
purpose  of  receiving  payment of or on  account  of the  principal  hereof and
premium, if any, and interest due hereon and for all other purposes, and neither
the Company nor the Trustee  nor any paying  agent nor any  Debenture  Registrar
shall be affected by any notice to the contrary.

<PAGE>

       No  recourse  shall be had for the  payment  of the  principal  of or the
interest on this  Debenture,  or for any claim based  hereon,  or  otherwise  in
respect  hereof,  or  based  on or in  respect  of the  Indenture,  against  any
incorporator,  stockholder,  officer or director,  past,  present or future,  as
such, of the Company or of any predecessor or successor corporation,  whether by
virtue of any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise,  all such liability being, by the acceptance
hereof  and as part of the  consideration  for the  issuance  hereof,  expressly
waived and released.

       [The  Debentures  of this series are  issuable  only in  registered  form
without  coupons in  denominations  of $25 and any integral  multiple  thereof.]
[This Global  Debenture is  exchangeable  for Debentures in definitive form only
under certain limited  circumstances  set forth in the Indenture.  Debentures of
this series so issued are issuable  only in registered  form without  coupons in
denominations  of $25 and any  integral  multiple  thereof.]  As provided in the
Indenture  and subject to certain  limitations  [herein  and] therein set forth,
Debentures  of this  series [so issued] are  exchangeable  for a like  aggregate
principal  amount  of  Debentures  of  this  series  of a  different  authorized
denomination, as requested by the Holder surrendering the same.

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

       FOR  VALUE  RECEIVED,  the  undersigned  hereby  sell(s),  assign(s)  and
transfer(s) unto

(PLEASE INSERT SOCIAL SECURITY OR OTHER
   IDENTIFYING NUMBER OF ASSIGNEE)

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

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

--------------------------------------------------------------------------------
(PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF

--------------------------------------------------------------------------------
ASSIGNEE) the within Debenture and all rights thereunder, hereby

--------------------------------------------------------------------------------
irrevocably constituting and appointing such person attorney to

--------------------------------------------------------------------------------
transfer such Debenture on the books of the Issuer, with full

--------------------------------------------------------------------------------
power of substitution in the premises.

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

<PAGE>

NOTICE:       The signature to this  assignment must correspond with the name as
              written upon the face of the within Debenture in every particular,
              without  alteration  or  enlargement  or any change  whatever  and
              NOTICE: Signature(s) must be guaranteed by a financial institution
              that is a  member  of the  Securities  Transfer  Agents  Medallion
              Program  ("STAMP"),  the Stock Exchange Medallion Program ("SEMP")
              or the New York Stock Exchange,  Inc. Medallion  Signature Program
              ("MSP").

                                  ARTICLE THREE

                      [PAYMENT OF TRUST COSTS AND EXPENSES]

              [SECTION 1. In connection  with the issuance of the  Securities to
the Trust,  and the loan of the proceeds of the Preferred  Securities and Common
Securities to the Company, the Company hereby covenants to pay to the Trust, and
reimburse the Trust for, the full amount of any costs,  expenses or  liabilities
of the Trust  (other  than  obligations  of the Trust to pay the  Holders of any
Preferred Securities or Common Securities)  including,  without limitation,  any
taxes,  duties or other  governmental  charges of  whatever  nature  (other than
withholding  taxes)  imposed  on the Trust by the  United  States or any  taxing
authority.  Such  payment  obligation  includes  any  such  costs,  expenses  or
liabilities  of the Trust that are required by applicable law to be satisfied in
connection  with a termination of the Trust.  The  obligations of the Company to
pay all debts,  obligations,  costs and  expenses of the Trust  (other than with
respect  to  amounts  owing  under  the  Common  Securities  and  the  Preferred
Securities) shall survive the satisfaction and discharge of the Indenture.]

                                  ARTICLE FOUR

                            MISCELLANEOUS PROVISIONS

              SECTION 1.    This Supplemental Indenture No. 1 is a supplement to
the Original  Indenture.  As supplemented by this Supplemental  Indenture No. 1,
the  Indenture is in all respects  ratified,  approved  and  confirmed,  and the
Original  Indenture  and  this  Supplemental  Indenture  No.  1  shall  together
constitute one and the same instrument.

              SECTION 2.    The   recitals   contained   in  this   Supplemental
Indenture No. 1 shall be taken as the  statements of the Company and the Trustee
assumes no responsibility  for their correctness and makes no representations as
to the validity or sufficiency of this Supplemental Indenture No. 1.

              SECTION 3.    This  instrument  may be  executed  in any number of
counterparts,  each of which so executed shall be deemed to be an original,  but
all such counterparts shall together constitute but one and the same instrument.

<PAGE>

              IN  WITNESS   WHEREOF,   the  parties   hereto  have  caused  this
Supplemental Indenture No. 1 to be duly executed, and their respective corporate
seals to be  hereunto  affixed  and  attested,  all as of the day and year first
written above.

                                            SOUTHWESTERN ELECTRIC POWER COMPANY

                                            By:
                                            Name:
                                            Title:

[SEAL]

ATTEST:

                                            THE BANK OF NEW YORK,
                                            as Trustee

                                            By:
                                            Name:
                                            Title:

[SEAL]

ATTEST:

                                       10

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